Oportun announced on October 29, 2024, a significant step to optimize its capital structure by entering into a new $235 million Senior Secured Term Loan. This refinancing, led by Castlelake and Neuberger Berman, carries a 15% fixed rate and matures in November 2028.
The new Term Loan provides improved operational and balance sheet flexibility with covenants reflecting the company's performance improvements. In connection with the loan, lenders will receive warrants equal to 9.8% of fully-diluted shares outstanding, which was 4,860,706 warrants as of September 30, 2024.
Concurrently, Oportun provided preliminary third-quarter 2024 financial results, expecting Total Revenue in line with guidance and annualized net charge-offs 25 basis points better than guidance. The company anticipates Adjusted EBITDA of $28 million to $31 million, exceeding the top end of its guidance range by $2 million to $5 million, driven by improved credit performance and expense discipline.
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