Pagaya prices $500 million senior notes offering at 8.875%

NEW YORK - Pagaya Technologies LTD. (NASDAQ:PGY), currently trading near its 52-week high with a market capitalization of $2.55 billion, announced on Wednesday that its subsidiary, Pagaya US Holding Company LLC, has priced a $500 million offering of senior unsecured notes due 2030 with an interest rate of 8.875%.

The offering, which was increased from the previously announced $450 million due to strong demand, is being made to qualified institutional buyers who are also qualified purchasers under Rule 144A of the Securities Act. Settlement is expected on July 28, 2025, subject to customary closing conditions. According to InvestingPro data, the company maintains a healthy current ratio of 1.79, indicating strong ability to meet short-term obligations.

The notes will pay interest semi-annually beginning February 1, 2026, and will mature on August 1, 2030. They will be guaranteed by Pagaya and its subsidiaries that are guarantors under its existing credit agreement.

According to the company, substantially all proceeds will be used to repay existing debt, including all outstanding amounts under current credit facilities and approximately $100 million of certain secured borrowings. The remainder will fund general corporate purposes.

Pagaya estimates net proceeds of approximately $491 million after deducting discounts, commissions, and offering expenses.

The AI-driven financial technology company, which provides consumer credit and residential real estate products through its partners, has offices in New York and Tel Aviv. With annual revenue of $1.08 billion and impressive growth momentum shown by a 267% return over the past six months, Pagaya has caught investors’ attention. InvestingPro analysis reveals 13 additional key insights about the company’s performance and prospects, available to subscribers.

The notes and guarantees have not been registered under the Securities Act or Investment Company Act and can only be offered or sold under exemptions from registration requirements. While analysts expect profitability this year, investors seeking deeper insights can access comprehensive valuation analysis and financial health metrics through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

This information is based on a press release statement from the company.

In other recent news, Pagaya Technologies announced it expects to exceed its second-quarter 2025 guidance, with preliminary results indicating revenue of approximately $326 million. This figure surpasses the company’s prior guidance range of $290 million to $310 million. Additionally, Pagaya’s network volume is projected to reach about $2.6 billion, exceeding earlier expectations. In a separate development, Pagaya closed a $400 million AAA-rated auto loan asset-backed securities transaction, marking its largest auto ABS deal in 2025.

Citi has raised its price target for Pagaya Technologies to $40, citing increased network growth expectations and maintaining a Buy rating. Benchmark also increased its price target to $42, following Pagaya’s announcement of strong second-quarter operating results. Meanwhile, JMP Securities reiterated its Market Outperform rating with a $26 price target. These developments highlight significant investor interest and confidence in Pagaya’s growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.