Neo Financial secures $185 million credit facility

Calgary-based fintech Neo Financial has closed a $185 million syndicated warehouse facility to increase funding capacity for its credit card receivables. The deal is led by ATB Financial, acting as the administrative agent, lead arranger, and sole bookrunner.

The syndicate includes four Canadian credit unions: Vancity, Beem Credit Union, Alterna Savings and Credit Union, and Innovation Federal Credit Union. The agreement includes an accordion feature that allows the facility to expand up to $250 million.

A warehouse facility enables a company to borrow against a pool of assets, such as credit card receivables, without relinquishing equity or utilizing traditional loans. Neo co-founder Jeff Adamson stated the deal reflects an ambition to build a platform where other financial institutions can participate in the growth of the company's card business.

This announcement follows a period of expansion for Neo, which includes the launch of new credit cards and partnerships with Mastercard and United Airlines. Since its founding in 2019, the company has raised more than $650 million and serves over one million customers.