Pagaya Technologies LTD. announced that its subsidiary, Pagaya US Holding Company LLC, priced an offering of $500 million aggregate principal amount of 8.875% senior unsecured notes due 2030. The offering size was increased from the previously announced $450 million due to strong demand from qualified institutional buyers. The issuance and sale of the notes are scheduled to settle on July 28, 2025.
The company estimates net proceeds of approximately $491 million, after deducting initial purchasers’ discounts and commissions and estimated offering expenses. These proceeds are intended to repay all outstanding amounts under existing credit facilities and approximately $100 million of certain outstanding secured borrowings, with the remainder for general corporate purposes.
The notes will accrue interest semi-annually, beginning February 1, 2026, and will mature on August 1, 2030. This successful pricing reflects strong market confidence in Pagaya's financial profile and its strategy to optimize its capital structure by replacing higher-cost debt.
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