Pagaya Technologies has closed a five-year credit facility of $280m with participation from funds and accounts managed by BlackRock U.S. Private Capital, UBS O’Connor, Valley Bank, JPMorgan Chase, and Israel Discount Bank.

The facility consists of a term loan of $255m and a $25m revolver.

It will provide the capital and liquidity required to support the Nasdaq-listed Pagaya Technologies’s future growth and will also extend its corporate debt maturity to 2029.

The fintech company said that the capital validates the confidence of investors in its business model as well as financial strength.

BlackRock managing director Dan Worrell said: “We are pleased to partner with Pagaya and support its next stage of growth through this facility.

“We are impressed by the company’s differentiated business model, core product offering, and financial strategy to create more financial opportunities and to enable new customer relationships.”

Pagaya Technologies, which has offices in New York, US and Tel Aviv, Israel, offers artificial intelligence (AI)-driven product solutions for the financial ecosystem.

By leveraging machine learning, a vast data network, and a sophisticated AI-driven approach, the firm delivers consumer credit and residential real estate solutions for its partners, their customers, and investors. 

Pagaya Technologies’ application programming interface (API) and capital solutions integrate into its network of partners to deliver frictionless user experiences and greater access to the mainstream economy.

According to the company, the proceeds from the credit facility will be used for settling outstanding borrowings from its previous facility.

It will also be utilised to invest in innovation of products and grow the company’s network with existing as well as new lending and investor partners.

Pagaya Technologies co-founder and CEO Gal Krubiner said: “This credit facility, led by BlackRock, showcases the confidence and support from some of the largest and most sophisticated financial institutions in the world, as we transform the consumer finance ecosystem in the next phase of our growth journey.”