OnDeck announced the closing of an $85 million corporate revolving credit facility with a lender group consisting of four banks. The new committed facility can be used for general corporate purposes and replaces OnDeck's prior $30 million corporate facility.

"The closing of this facility is yet another step forward in our efforts to improve our funding flexibility and costs," said Ken Brause, Chief Financial Officer, OnDeck. "Securing long-term lending commitments from a high quality and diverse bank group reflects growing confidence in the OnDeck business model and the improved financial strength of our company. "

The following are additional details about the new facility:

• Commitment Amount: $85 million
• Interest Rate (drawn): 1 Month LIBOR + 3%
• Maturity Date: January 2021
• Arrangers: SunTrust Bank and Silicon Valley Bank
• Other Lenders: MB Financial Bank and Congressional Bank.

"This transaction provides OnDeck with a significant source of incremental liquidity that provides flexibility to pursue strategic corporate initiatives at an attractive cost of funds," said Ron Elimelekh, Head of Capital Markets, OnDeck.

In December, the small business online lending firm announced it would offer equipment finance loans starting in 2019. For more on OnDeck’s plans see the Equipment Finance Advisor’s exclusive interview with Mark Erickson as Vice President of Equipment Finance and OnDeck Chairman and CEO Noah Breslow.