IOU Financial Inc, an online lender to small businesses in the U.S. and Canada, has extended its US$22 million credit facility with Midcap Financial until December 31, 2022. MidCap Financial is a middle market-focused, specialty finance firm that provides senior debt solutions to businesses in North America and Europe. MidCap Financial is managed by Apollo Capital Management LP, a subsidiary of Apollo Global Management LLC.
MONTREAL, Dec. 31, 2019 /PRNewswire/ – IOU FINANCIAL INC. (“IOU” or “the Company”) (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), is pleased to announce that it has modified and extended its US $22 million secured credit facility (the “Credit Facility”) with MidCap Financial, (“Midcap”) until December 31, 2022. The modified interest rate of the Credit Facility is LIBOR plus 5.5%, down from LIBOR plus 8.5%.
“Since 2016, Midcap has been a solid funding partner for IOU, supporting the Company’s continued growth in the U.S. and in Canada,” said Phil Marleau, CEO of IOU Financial. “This Credit Facility enables us to continue to provide efficient, rapid financing that our small business customers need to grow and succeed.”
“We are very pleased to have concluded this extension and modification to the Credit Facility with MidCap which represents another step forward towards executing on our strategy of reducing the Company’s cost of borrowing and maintaining diversified sources of capital,” said David Kennedy, CFO of IOU Financial.
About IOU Financial Inc.
IOU Financial Inc. provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly. In a unique approach to lending, IOU Financial’s advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-to-day cash flow trends. IOU Financial allows these businesses to apply for six, nine, twelve, fifteen and eighteen-month term loans of up to US$500,000 to qualified U.S. applicants ($150,000 in Canada) within a few business days, with affordable charges favorable to cash-flow management. Its speed and transparency make IOU Financial a trusted alternative to banks. To learn more visit: IOUFinancial.com.
About Midcap Financial
MidCap Financial is a middle market-focused, specialty finance firm that provides senior debt solutions to businesses across all industries throughout North America and in Europe. MidCap Financial provides management or other services with respect to over $22 billion of commitments as of June, 2019, of which $3.44 billion are managed by MidCap Financial Services Capital Management LLC, a registered investment adviser. MidCap Financial provides a broad array of products intended to finance growth and manage working capital. MidCap Financial is managed by Apollo Capital Management, L.P., a subsidiary of Apollo Global Management, LLC, pursuant to an investment management agreement. Apollo Global Management is one of the world’s largest asset managers with approximately $312 billion of assets under management (as of June 30, 2019), providing market leading industry expertise, market reach, and financing synergies. To learn more visit: www.midcapfinancial.com.