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Propel Holdings Inc
Symbol PRL
Shares Issued 38,856,731
Close 2025-04-28 C$ 27.51
Market Cap C$ 1,068,948,670
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Propel increases CreditFresh credit line to $400M (U.S.)

2025-04-28 13:54 ET - News Release

Mr. Clive Kinross reports

PROPEL ANNOUNCES UPSIZE TO CREDITFRESH CREDIT FACILITY, REFINANCING OF MONEYKEY CREDIT FACILITY AND A LOWER COST OF CAPITAL

Propel Holdings Inc. has made an amendment to its existing syndicated credit facility for the CreditFresh line of business and upsized it from $70-million to $400-million. Furthermore, Propel announced a refinancing of its credit facility for the MoneyKey line of business. All amounts are expressed in U.S. dollars.

CreditFresh credit facility

With the amendment, the CreditFresh credit facility will bear interest at an interest rate equal to the secured overnight financing rate (SOFR) plus approximately 620 basis points per annum. This is a reduction from the prior interest rate of SOFR plus 750 basis points per annum. With the upsize, the total commitment for the CreditFresh credit facility is $400-million.

The CreditFresh credit facility continues to be led by Mesirow Alternative Credit (formerly Bastion Management) and affiliates thereof and Hudson Cove Capital Management LLC and affiliates thereof. The syndicate also includes the addition of a large FDIC-insured (Federal Deposit Insurance Corp.) bank.

MoneyKey credit facility

Under the terms of the new credit agreement, the MoneyKey credit facility will bear interest at an interest rate equal to SOFR plus approximately 425 basis points per annum. This is a reduction from the prior MoneyKey credit facility interest rate of SOFR plus 1,020 basis points per annum. The MoneyKey credit facility total commitment is $15-million and will be solely led by Veritex Community Bank.

Commentary

As reported in its Q4 and full-year 2024 results, Propel's U.S. loan portfolio, including CreditFresh and MoneyKey, continues to experience strong growth driven by the expansion of its bank partnerships, the delivery of best-in-class products and the growing demand from the underserved market in the United States. With the combined amendment and refinancing, Propel's cost of capital will be lowered by approximately 150 basis points per annum.

"Looking ahead, we see opportunity. The amendment and refinancing allow us to realize a reduction in our cost of capital and increased liquidity to achieve our growth targets. Admist the economic uncertainty, the continued support from large, institutional lenders, such as Veritex, Mesirow Alternative Credit and Hudson Cove, and the addition of a new large bank to the syndicate is a testament to Propel's demonstrated performance and growth outlook. Propel delivered record performance in 2024, and there is still so much growth ahead of us on our journey to become a global leader in providing credit for underserved consumers," said Clive Kinross, Propel's chief executive officer.

About Propel Holdings Inc.

Propel Holdings is a fintech (financial technology) company building a new world of financial opportunity for consumers, partners and investors. Propel's operating brands -- Fora Credit, CreditFresh, MoneyKey and QuidMarket -- and its lending-as-a-service product line facilitate access to credit for consumers underserved by traditional financial institutions. Through its AI-powered (artificial intelligence) platform, Propel evaluates customers in a more comprehensive way than traditional credit scores can. The result is better products and an expanded credit market for consumers while creating sustainable, profitable growth for Propel. The revolutionary fintech platform has already helped consumers access over one million loans and lines of credit and over $2-billion in credit. At Propel, the company is here to change the way customers, partners and investors succeed together.

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