Israeli fintech company Pagaya Technologies (Nasdaq: PGY) has completed raising a $280 million credit facility. The debt was raised directly for the company's needs and not for one of the funds that it operates. In other words the funds could be used by the company for mergers and acquisitions.
The financing round was led by Jefferies with participation from BlackRock, JP Morgan Chase, Discount and Valley Bank (in which Leumi has a 14% stake), and UBS O'Connor.
Pagaya has developed technology solutions for financial institutions that allows them to more precisely mange credit allocation procedures. The company was founded by CEO Gal Krubiner, Yahav Yulzari, and Avital Pardo and in June 2022 completed a SPAC merger and began trading on Wall Street at a company valuation of $8.5 billion.
Shortly afterwards the company market cap jumped to almost $20 billion in what was believed to be a short squeeze, before falling heavily. Pagaya's current market cap is $878 million.
Several weeks ago the company announced steps to enhance its marketability for trading by US institutional investors including a reverse split of shares and transitioning from an Israeli company to a US company.
At the same time, Pagaya reported 2023 revenue of $800-825 million, adjusted EBITDA of $65-75 million and activities worth $8-8.2 billion.
Published by Globes, Israel business news - en.globes.co.il - on February 7, 2024.
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