Oportun secures $247 million warehouse facility, extends debt terms

SAN CARLOS, Calif. - Oportun (NASDAQ:OPRT), a financial services company with strong liquidity metrics and a current ratio of 1.57, announced Tuesday it has closed a new $247 million three-year revolving warehouse facility with Citizens Financial Group and Community Investment Management. According to InvestingPro data, the company maintains healthy financial metrics with revenue growth of nearly 16% in the last twelve months.

The company also extended an existing warehouse facility with Goldman Sachs and Jefferies by 12 months. Both facilities were secured at more favorable pricing than existing arrangements, reducing overall financing costs, according to a press release statement. This strategic move aligns with the company’s focus on maintaining strong liquidity, as evidenced by its healthy balance sheet where liquid assets exceed short-term obligations.

These moves increase Oportun’s total committed warehouse capacity from $954 million to $1.14 billion and extend the weighted average remaining term of its combined warehouse facilities from 17 to 25 months.

Additionally, Oportun reported it has paid down $17.5 million of higher-cost corporate debt since the end of the third quarter. This brings the total corporate debt reduction to $50 million since October 2024, when the facility was established.

"Reducing total warehouse financing costs while increasing committed warehouse capacity helps ensure Oportun is well placed to continue delivering for our investors and members," said Paul Appleton, Interim Chief Financial Officer at Oportun.

The company stated it has proactively repaid the remaining $7.5 million of the $27.5 million in mandatory corporate loan payments due by January 2026, along with an additional $10 million eligible for early repayment without penalties. This has reduced the initial October 2024 balance of $235 million on its corporate financing facility to $185 million.

Oportun describes itself as a mission-driven financial services company that provides borrowing, savings, and budgeting capabilities to its members. For deeper insights into Oportun’s financial health and growth prospects, including exclusive analysis and real-time metrics, visit InvestingPro, where subscribers can access over 10 additional key insights about the company’s performance and outlook.

In other recent news, First Brands Group’s bankruptcy has drawn the attention of the U.S. Department of Justice, which is investigating potential billions in losses for investors and creditors. This bankruptcy filing could also impact investment portfolios managed by Jefferies Financial Group, particularly a $715 million portfolio of trade-finance assets. Meanwhile, Jefferies has been in the spotlight with BMO Capital initiating coverage on its stock with a Market Perform rating, highlighting both long-term potential and near-term challenges. Morgan Stanley adjusted its price target for Jefferies to $74, citing strengths in its Equities Trading and Capital Markets divisions. Additionally, Jefferies exceeded expectations on its non-compensation expense ratio, reporting 30.9% compared to the consensus estimate of 33.6%. In a strategic move, Sumitomo Mitsui Financial Group announced plans to increase its stake in Jefferies to 20% as part of an expanded alliance. Despite this increase, Sumitomo Mitsui will keep its voting interest below 5%.

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