Sezzle Inc. announced its new $150 million receivables funding facility secured with an affiliate of Bastion Management II LLC (Bastion). Bastion will act as the Administrative Agent for the lenders. The new facility supersedes the previous $100 million facility established in October 2022 with Bastion and affiliates.

In addition to increasing the size of the facility, the new facility will significantly lower the company?s borrowing costs. The new facility will have an interest rate of SOFR (Secured Overnight Financing Rate) plus 6.75% compared to the previous facility?s rate of SOFR plus 11.50%. The additional funding will bolster the company?s ongoing growth in the United States and Canadian markets, providing the necessary resources to scale operations and pursue new strategic initiatives.

Key Terms of the Facility: Size: $150 million plus $75 million accordion; Term: 3 years; Interest Rate: 3-month Term Secured Overnight Financing Rate (SOFR) + 6.75% with a SOFR floor of 2.0%; Advance Rate: 85% - 90% of eligible originations, dependent upon receivable performance; Unused Additional Interest: 0.5% of unused funds, paid annually; Minimum Utilization: $60 million throughout the life of the facility; previous facility minimum utilization was $80 million; Other: Covenants, representations & warranties, and reporting obligations typical of a similar receivables warehouse facility.