Toronto-based Flexiti Financial has raised an $80 million mezzanine debt facility from Credit Suisse Asset Management.
Founded in 2013, Flexiti offers POS financing at big-ticket retailers, allowing their customers to apply for financing and receive approval within minutes without paperwork.
In June 2018, Flexiti Financial acquired TD Financing Services’ (TDFS) Canadian private label credit card portfolio, valued at approximately $250 million. The transaction was financed by $350 million in credit facilities led by Credit Suisse AG, Cayman Islands Branch and a syndicate of mezzanine lenders. During that time, Globalive Capital led an equity round of over $50 million, giving them a controlling position in Flexiti.
Flexiti plans to use the loan to finance future originations and help its merchant partners offer flexible financing options. With this new debt facility, $40 million will be used to refinance existing debt at lower interest rates to reduce Flexiti’s cost of capital. Flexiti notes that it has over $400 million in lending capacity.
“We are committed to delivering an industry-leading financing solution and support services that helps retailers grow their sales and succeed in a highly competitive retail environment,” said Peter Kalen, Founder and CEO of Flexiti. “The debt facility provided by Credit Suisse Asset Management allows us to enhance our offering to a rapidly expanding client base and places Flexiti in a stronger financial position to accelerate our growth as the leading private label credit card issuer in Canada.”