- MoneyLion finalizes a $70 million loan facility with Silicon Valley Bank.
- Refinancing reduces capital costs and extends debt maturity to 2029.
What happened
MoneyLion Inc. has successfully closed a $70 million loan facility with Silicon Valley Bank to refinance its existing senior debt, significantly lowering its cost of capital by approximately 550 basis points and extending the maturity to 2029. The proceeds from the new loan were used to repay the approximately $65 million outstanding under the company’s previous loan facility, including accrued interest and related fees, and will also be used for ongoing working capital and general corporate purposes.
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Why it is important
This refinancing is a significant milestone for MoneyLion as it not only reduces the company’s cost of capital but also provides additional financial flexibility. The reduced interest expense will improve cash flow and profitability, allowing MoneyLion to invest more aggressively in innovation and expand its ecosystem. The extended debt maturity provides stability and reduces the urgency of needing to refinance in the near term, which is particularly beneficial given the unpredictable nature of market conditions. This move also reflects well on MoneyLion’s creditworthiness and its ability to secure favorable terms in the market, despite its existing debt not being due until 2026. This strategic financial maneuver positions MoneyLion to be more competitive in the financial technology space and continue to serve its customers with a robust suite of financial products and services.
