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Petal Closes $300MM Debt Facility from Jefferies

September 27, 2019, 08:45 AM
Filed Under: Credit
Related: Jefferies

Petal, a new kind of credit card company built to help people financially succeed, announced that it has closed an uncommitted facility to borrow up to $300 million in debt capital from global investment bank Jefferies. Petal entered into a similar facility to borrow up to $30 million in debt capital from Jefferies last year. This expanded debt facility gives Petal additional fuel to continue to expand the fast-growing Petal card program.

Petal has seen exponential growth in signups since introducing the Petal credit card last fall. Demand for the Petal card has been particularly strong among younger consumers: more than 65% of Petal’s 50,000 customers fall within the millennial and Gen Z generations.

“Our expanded facility with Jefferies provides an excellent foundation for serving our current and future customers for many quarters to come,” said Andrew Endicott, Petal’s chief financial officer and co-founder. “It’s a massive vote of confidence in Petal’s mission to create a fundamentally better credit product experience that better serves the needs of modern customers.”

“We are pleased to once again support Petal in its mission to help people succeed financially by offering its customers access to the credit they deserve,” said Michael Wade, head of U.S. ABS capital markets, Jefferies.

Petal was established to help people build credit, not debt, by providing access to a no-fee credit card with cash back, high limits and low rates that people can qualify for even if they’ve never used credit before. The Petal card program does this by using novel and proprietary underwriting technology that analyzes thousands of objective financial data points that aren’t typically considered in a credit approval decision, like how much an individual makes, saves and spends over time, and the bills they pay each month. In addition, Petal offers a radically simple user interface and mobile app, making it effortless to manage your money, track your spending, and build credit without thinking much about it.

To date, Petal has raised more than $46 million in equity financing from venture capitalists, financial institutions and investment banks, including Valar Ventures, Greyhound Capital, Third Prime Capital, Rosecliff Ventures, Story Ventures, RiverPark Ventures and Afore Capital, in addition to its debt facilities with Jefferies and Silicon Valley Bank.

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