MoneyLion Secures $70 Million Credit Agreement with Silicon Valley Bank

MoneyLion (NYSE: ML) announced on November 25, 2024, that it successfully entered into a Credit Agreement with several lenders and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company. The agreement includes $70.0 million in term loans, with provisions for incremental commitments of up to $30.0 million in additional term loans under certain conditions.

MoneyLion Technologies Inc., a wholly-owned subsidiary of MoneyLion, borrowed the Initial Term Loans totaling $70.0 million to fully repay an existing loan facility. The funds were also allocated towards transaction-related fees, expenses, ongoing working capital, and general corporate purposes for the Company and its subsidiaries.

The Initial Term Loans come with a floating rate of annual interest, payable quarterly, tied to a base rate or an adjusted one-month Secured Overnight Financing Rate (SOFR), with margins varying based on MoneyLion’s Consolidated Total Leverage Ratio. These loans are set to mature on November 25, 2029, with quarterly repayments beginning on March 31, 2025.

To secure the Credit Agreement, MoneyLion and its subsidiaries, with certain exceptions, committed to customary representations, warranties, and financial covenants, including restrictions on additional indebtedness, liens, equity and debt payments, and certain business activities. The obligations under the Credit Agreement are guaranteed by MoneyLion and its subsidiaries and secured by a first-priority security interest in most assets of the Company and its guarantors.

In connection with the new Credit Agreement, MoneyLion terminated an existing Credit Agreement dated March 24, 2022. The refinancing of existing debt is expected to lower MoneyLion’s cost of capital significantly and extend the debt maturity to 2029.

The full details of the Credit Agreement can be found in the document filed with the Securities and Exchange Commission. This strategic move is part of MoneyLion’s continued efforts to strengthen its financial position and pursue innovative financial solutions in the industry.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read MoneyLion’s 8K filing here.

About MoneyLion

MoneyLion Inc, a financial technology company, provides personalized products and financial content for American consumers. The company's platform offers access to banking, borrowing, and investing solutions for customers. Its principal products include RoarMoney, an insured digital demand deposit account; Instacash, a cash advance product that gives customers early access to their recurring income deposits; Credit Builder Plus membership program; MoneyLion Investing, an online investment account that offers access to separately managed accounts invested based on model exchange-traded fund portfolios; Roundups, which provides features designed to encourage customers to establish good saving and investing habits; and MoneyLion Crypto, an online cryptocurrency account.