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Globe and Mail
3 days ago
- Business
- Globe and Mail
Pagaya Closes Upsized $500 Million 8.875% Senior Unsecured Notes Offering, Signaling Strong Investor Confidence
Pagaya Technologies Ltd. (NASDAQ: PGY) ('Pagaya' or the 'Company'), a global technology company delivering AI-driven product solutions for the financial ecosystem, today announced the successful closing of its upsized offering of $500 million of 8.875% senior unsecured notes due 2030 (the 'notes'). Net proceeds from the offering will be used primarily to refinance the existing higher-cost term loan and other secured borrowings. The transaction marks a significant milestone in Pagaya's evolution as a public company, establishing it as one of the first fintechs to access the high-yield unsecured debt markets. Backed by strong demand from many of the world's leading institutional investors, the deal was upsized and approximately 5 times oversubscribed. 'Executing a $500 million high-yield offering with significant investor demand is a milestone that reflects the strength of our financial profile and the institutional support of our platform,' said Gal Krubiner, Co-Founder and CEO of Pagaya. 'This achievement strengthens our ability to scale, drive sustained profitability, and deliver long-term shareholder value.' By refinancing legacy debt and eliminating associated debt amortization, Pagaya further improves its GAAP Net Income profitability and expects to generate approximately $40 million of annualized cash flow savings, based on first quarter 2025 performance, resulting from the following: ~$30 million in reduced debt amortization (a portion of the annualized first quarter 2025 payments made to secured borrowings and long-term debt) and approximately $12 million in annual interest expense reduction. The transaction is expected to lower Pagaya's cost of debt by nearly 200 basis points, while maintaining generally flat net leverage. This offering builds on Pagaya's capital strategy, establishing repeatable access to public debt markets, enhancing capital flexibility, and broadening its long-term investor base. The Company is now rated by all three major credit agencies: S&P, Moody's, and Fitch. 'This transaction is the result of our disciplined financial strategy designed to strengthen our financial foundation, accelerate profitability, and unlock shareholder value,' said Evangelos Perros, CFO of Pagaya. 'By replacing higher cost secured debt with long term unsecured capital, we are improving our operating leverage, cash generation, and strategic positioning in the marketplace.' About Pagaya Technologies Pagaya (NASDAQ: PGY) is a global technology company making life-changing financial products and services available to more people nationwide, as it reshapes the financial services ecosystem. By using machine learning, a vast data network and an AI-driven approach, Pagaya provides comprehensive consumer credit and residential real estate products for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy. Pagaya has offices in New York and Tel Aviv. Cautionary Note About Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. These forward-looking statements give our expectations or forecasts of future events and can generally be identified by the words 'anticipate,' 'believe,' 'continue,' 'can,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'opportunity,' 'future,' 'strategy,' 'might,' 'outlook,' 'plan,' 'possible,' 'potential,' 'predict,' 'project,' 'should,' 'strive,' 'will,' 'would,' 'will be,' 'will continue,' 'will likely result,' and similar expressions. All statements other than statements of historical fact are forward-looking statements, including statements regarding the expected benefits of the notes offering. Actual results may differ from those set forth in this press release due to the risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the offering and the other risks and uncertainties described in the Company's filings with the SEC, included under the heading 'Risk Factors' in the Company's Annual Report on Form 10-K and any subsequent filings with the SEC. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements reflect the Company's views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. The Company cannot provide any assurances regarding its ability to effectively apply the net proceeds of the offering or achieve the benefits described in this press release. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, reflect the Company's current beliefs and are based on information currently available as of the date they are made, and the Company assumes no obligation and does not intend to update these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Yahoo
14-07-2025
- Business
- Yahoo
Japanese Bonds Tumble as Fiscal Worries Mount Before Election
(Bloomberg) -- The slump in Japan's long-term bonds intensified Monday, pushing yields sharply higher in a move that puts global debt markets on alert. Why Did Cars Get So Hard to See Out Of? How German Cities Are Rethinking Women's Safety — With Taxis Philadelphia Reaches Pact With Workers to End Garbage Strike Amid signs of thin liquidity and increasing worries about higher government spending in Japan, yields on bonds from 10-year to 40-year spiked in moves reminiscent of the surge that rippled through global markets in May. While the pressure in Japan is being heightened by the looming election on July 20, concerns over governments spending beyond their means also apply to the UK, Europe and US. Japan's 40-year yield led the way, with a jump of 17 basis points in aftdernoon trading, while the 30-year yield neared the record high seen in May and the 20-year yield touched the highest since 2000. The rout in Japan's debt market also followed a tumbled in US Treasuries on Friday as worries about inflation re-emerged. In Germany on Monday, long-term borrowing costs were on course to hit their highest since 2011 on concern over tariffs and extra government spending. 'Government spending is huge,' said Amir Anvarzadeh, Japan equity strategist at Asymmetric Advisors Pte. 'Inflation is up, wages are up. At some point something has to give,' he said, adding that rising JGB yields are also a worry for stocks. Focus has intensified on the nation's upper house election, with several local Japanese media polls pointing to the possibility the ruling bloc may lose its majority. Politicians have been wooing voters with promises of more government spending and tax cuts, which would increase the nation's debt load. 'There is a move to reduce risk ahead of the upper house election in the bond market,' said Miki Den, senior rates strategist at SMBC Nikko Securities. 'With few buyers expected before the election and ongoing selling flows, super-long-term bonds are experiencing large price fluctuations and are being sold off.' What Bloomberg Strategists say: 'Long-ended JGBs are selling off nastily yet again toward the end of Tokyo's day and that's casting a shadow on Europe's morning by reemphasizing concerns that bond markets are fragile heading into critical US inflation data later this week' — Garfield Reynolds, MLIV Team Leader, Sydney. For the full analysis, click here. Yields also rose in response to a report from Bloomberg that Bank of Japan officials are likely to consider raising at least one of their inflation forecasts at a policy meeting later this month. 'The fiscal concerns will continue to keep super-long bonds quite fragile,' said Shinichiro Kadota, head of Japan FX and rates strategy at Barclays Securities Japan Ltd. A surge in domestic interest rates also poses a potential headwind for Japan's corporate bond market, which saw record volume in the first quarter of the new fiscal year through June. Higher yields translate directly into increased debt issuance costs for companies, raising concern that they may scale back yen bond offerings. This could also accelerate a shift toward offshore funding. In the sovereign debt market, a lack of liquidity in recent months has made bonds particularly vulnerable to sharp swings. A Bloomberg gauge that examines how far intraday yield levels deviate from fair value has surged since early April and is now well above the previous peak set during the global financial crisis in 2008. 'The sharp rise in super-long yields show that the market is pricing in government fiscal risks to some degree,' said Yuichi Kodama, economist at Meiji Yasuda Research Institute. 'But the impact on the real economy has not yet materialized.' Kodama emphasized that what's more important is 10-year bond yields, which are linked to fixed mortgage rates and would have a significant impact on the real economy. The 10-year yield rose to 1.575%. Bank of Japan Governor Kazuo Ueda has said the nation's super-long yields — which are generally thought of as those on the 20-year maturity and higher — have limited impacts on the real economy compared to shorter-term debt. Yet he has also said the will carefully monitor developments. 'Ueda is currently downplaying the spike in super-long yields, but I'm sure he's watching the situation closely,' said Kodama. 'He's avoiding explicit comments because any statement could be interpreted as signaling market intervention or as a threshold for intervention.' Atsushi Takeda, chief economist at Itochu Research Institute also said that businesses broadly don't take on debt in the super-long end, meaning it has limited importance for the real economy. 'But we are starting to see a rise in 10-year bond yields due to concerns over fiscal health and that's something we must keep a close eye on,' Takeda said. While the result of the upper house election is hard to predict, 'opposition parties are calling for a cut in the sales tax so if they win, fiscal anxiety will stay. If Ishiba's LDP wins, investors are probably back to buying bonds.' This year Japan allocated about a quarter of its initial budget to debt-servicing costs, totaling ¥28.2 trillion ($191 billion). The country has a debt-to-GDP ratio of 250% according to the IMF, the largest among developed economies. If the ruling parties take a beating in the upcoming election, Japan could be pushed into further fiscal spending or tax cuts. Opposition parties have lobbied for a decrease in the sales tax to varying degrees, while the ruling Liberal Democratic Party has proposed cash handouts that take less of a toll on public finances. 'These crazy moves probably can't be helped until the election is over,' said Tsutomu Soma, a bond and currency trader at Monex Inc. who is a 40-year trading veteran. 'I've never seen Japan's bonds move like this before an election. Usually you just think about it after the election's done.' --With assistance from Mia Glass, Alice French, Masahiro Hidaka, Issei Hazama, Yoshiaki Nohara and Toru Fujioka. 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Trump's Cuts Are Making Federal Data Disappear Trade War? No Problem—If You Run a Trade School Will Trade War Make South India the Next Manufacturing Hub? Soccer Players Are Being Seriously Overworked ©2025 Bloomberg L.P.
Argaam
12-07-2025
- Business
- Argaam
Cenomi Centers hires financial advisor to refinance $875M sukuk
Arabian Centres Co. (Cenomi Centers) appointed Rothschild & Co as financial advisor for the refinancing of $875 million (SAR 3.28 billion) in sukuk maturing on Oct. 7, 2026, with White & Case continuing as legal advisor. In an emailed statement to Argaam, Cenomi Centers said it will continue to move forward with the refinancing of the $875 million worth of sukuk in the global debt markets in US dollars over the coming months with the support of Rothschild & Co, aiming to complete the process in the second half of 2025. According to Argaam data, shareholders authorized last March the company to issue and offer Sharia-compliant sukuk worth up to SAR 3.75 billion (or its equivalent in any other currency to be determined by the board of directors at its sole discretion from time to time).
Bloomberg
10-07-2025
- Business
- Bloomberg
Dartmouth Joins Ivy League Bond Boom With $456 Million Debt Sale
By and Amanda Albright Save Dartmouth College is looking to borrow more than $450 million, joining a groundswell of Ivy League issuers turning to the debt markets this year. The private university will sell about $156 million of tax-exempt bonds through a state agency and $300 million of taxable bonds to fund campus energy initiatives and housing plans, S&P Global Ratings reported in a release Thursday. The credit grader gave the issuance a pristine AAA label, citing Dartmouth's ample financial resources, strong fundraising and 'impressive market position and demand.'
Bloomberg
10-07-2025
- Business
- Bloomberg
China Lenders Rush to Sell Riskiest Debt to Catch Low Yields
Chinese lenders are rushing to sell the riskiest kind of bank debt to capitalize on record-low funding costs. Overall, issuance of capital bonds, including high-yielding subordinated debt, rose 23% to a record 638.7 billion yuan ($88.95 billion) in the second quarter, according to data compiled by Bloomberg. The average coupon on Tier-2 bonds fell to 2.35% and to 2.31% on perpetual debt, both the lowest since records began in 2009.
