US lender PowerPay lands $60m corporate bond led by KeyBank
PowerPay, a US-based digital lender, has secured a $60 million investment-grade corporate bond issuance with Ohio’s KeyBank acting as the exclusive private placement agent.
PowerPay secures $60 million corporate bond
Founded in 2017, PowerPay offers a suite of digital point-of-sale (PoS) lending solutions tailored for the home improvement, healthcare, and solar finance sectors. It claims to have processed over $8 billion in consumer loans since its inception.
The company says it plans to utilise the funds to improve its operational capabilities, invest in its technology, create new solutions, and broaden its market presence.
The news comes hot on the heels of Scotiabank’s August agreement to acquire a 14.9% pro-forma ownership stake in KeyCorp, the parent company of KeyBank, which operates 1,000 branches across 15 US states, for a total cash payment of $2.8 billion.
The deal will be executed in two phases, with Scotiabank first acquiring a 4.9% stake, expected to close in Q4 of FY2024, before purchasing an additional 10% in FY2025.
