IEG Holdings Corp. announced it has signed a Term Sheet for a new $100M senior debt facility from a leading Connecticut-based Investment Management group who specialize in private equity and credit investments. The executed Term Sheet is a strong sign of confidence in IEGH's business model and growth strategy.
Key highlights of the proposed Senior Debt Facility include a 12% interest rate and 87.5% advance rate. In addition, up to 10% of the facility could be used to fund loans originated in Australia. IEGH expects to make further announcements regarding the re-launch of Australian operations in the near term. Both parties are aiming to close the $100M facility by late November 2014 and the identity of the proposed Lender will remain confidential until the closing date. Upon successful completion of legal documentation, the new facility will repay and replace the current $10m senior debt facility and allow the company to increase the growth of its loan book significantly faster than the current impressive growth rates.
Since launching online lending in July 2013, cumulative loan volume has increased by 1135% from $237,000 to $2,927,013 as at September 18, 2014. The rapid loan volume growth is being driven by leading online lending website www.mramazingloans.com, new joint venture arrangements with low acquisition cost lead sources and aggressive state license expansion.
Paul Mathieson, Chairman/CEO and Founder of IEG Holdings Corporation stated "This new $100 million facility will take IEGH to the next level and is another significant event in our development and growth plans. With increased access to funding we are aiming to capture market share from our public company, consumer finance peers who include Springleaf and OneMain Financial, subsidiary of Citigroup, as well as soon to be listed peer-to-peer lender Lending Club. Our short term monthly loan volume target is $3 million per month driven predominantly by continued state expansion and increased loan lead purchases."
IEG Holdings Corporation provides unsecured consumer loans under the brand name "Mr. Amazing Loans" via its website www.mramazingloans.com. After lending approximately $48 million to over 11,500 borrowers in Australia, the company founder and chairman/CEO Paul Mathieson moved to the U.S. market in 2008 to replicate the successful business model. IEGH now operates online in the USA covering the 8 U.S. states of Nevada, Arizona, Illinois, Florida, Georgia, Missouri, Virginia and New Jersey. IEGH is rapidly expanding and plans to offer loans in 25 states covering approximately 250 million people equating to 80% of the US population by late 2014. The company launched advertising for its online loan origination platform in mid-2013, partnering with top lead generators in the United States. The company's loans range in value from $3,000 to $10,000 and have a term of four to five years with a 19.9% to 29.9% APR.