Bastion Management Closes $150 Million Facility with Sezzle

Rhea-AI Summary

Bastion Management announced a $150 million senior debt investment in Sezzle, with potential expansion up to $225 million. This facility refinances a previous $100 million facility from October 2022. The new funds aim to support Sezzle's growth in the U.S. and Canadian markets and further strategic initiatives. Sezzle's CFO, Karen Hartje, emphasized that the larger, lower-cost facility would enhance the company's ability to fund new initiatives and maintain profitable growth. Bastion's CEO, Jay Braden, highlighted their ongoing partnership and commitment to supporting Sezzle's innovation and expansion.

Positive

• New $150 million facility, expandable to $225 million.
• Refinances previous $100 million facility, indicating financial stability.
• Additional liquidity to fund growth in U.S. and Canadian markets.
• Support for new strategic initiatives.
• Lower-cost financing expected to enhance profitability.
• Ongoing partnership with Bastion, a reputable investment firm.

Negative

• Increasing debt levels could pose long-term financial risks.
• Dependence on external financing might indicate internal cash flow issues.
• Previous facility refinanced within less than two years, which might suggest financial instability or aggressive expansion.

STAMFORD, Conn., May 17, 2024 /PRNewswire/ -- Bastion Management ("Bastion"), a private investment firm focused on asset-based lending in the specialty finance sector, announced today that it agented a senior debt investment of $150 million, with an accordion up to $225 million, in Sezzle Inc. (NASDAQ:SEZL) ("Sezzle" or "Company") to refinance the previous $100 million facility established in October 2022 with Bastion and affiliates. The new facility will provide additional liquidity to fund the Company's future growth in the U.S. and Canadian markets and pursue new strategic initiatives.

"We're thrilled to extend our lending partnership with Bastion, a key growth partner of ours for many years," stated Karen Hartje, Sezzle's Chief Financial Officer. "This larger and lower-cost facility will significantly enhance our ability to fund the growth of new strategic initiatives and sustain our profitable growth trajectory. We are excited and optimistic about the potential this extended partnership holds for Sezzle's future."

Jay Braden, CEO of Bastion, added, "We are excited to announce this new chapter in the longstanding partnership between Sezzle and Bastion and through this new credit facility support the management team in their efforts to innovate and expand their offerings to further empower consumers in today's dynamic market."

About Bastion Management

Bastion is a private investment firm that provides creative financing solutions to small and midsized businesses operating in the alternative finance space throughout North America and in the UK. Over a decade since its inception, Bastion has closed over 45 transactions and over $1.3bn in total commitments to traditional consumer lending platforms and emerging companies in the financial technology industry. Bastion has a successful track record partnering with companies that have strong management teams and committed equity backing in support of the initial growth stage through to public listing.

About Sezzle

Sezzle is a fintech company on a mission to financially empower the next generation. Sezzle's payment platform increases the purchasing power for millions of consumers by offering interest-free installment plans at online and in-store locations. Sezzle's transparent, inclusive, and seamless payment option allows consumers to take control over their spending, be more responsible, and gain access to financial freedom. For more information visit sezzle.com.

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SOURCE Bastion Management

FAQ

What is the new investment announced by Bastion Management in Sezzle?

Bastion Management announced a $150 million senior debt investment in Sezzle, with an option to extend up to $225 million.

When was the new $150 million facility announced?

The new $150 million facility was announced on May 17, 2024.

What is the purpose of Sezzle's new $150 million facility?

The new facility aims to provide additional liquidity for growth in the U.S. and Canadian markets and to support new strategic initiatives.

How does the new facility compare to Sezzle's previous financing?

The new facility refinances a previous $100 million facility established in October 2022 and offers a larger, lower-cost funding option.

What is the stock symbol for Sezzle?

The stock symbol for Sezzle is SEZL.

Who are the key executives commenting on the new facility?

Karen Hartje, Sezzle's CFO, and Jay Braden, CEO of Bastion, commented on the new facility.