Mogo secures new umbrella loan of up to $40 million from Fortress

VANCOUVER – Mogo Finance Technology Inc. (TSX:MOGO) says it has secured a new umbrella loan of up to $40 million from Fortress Investment Group LLC.

The credit facility will be used to repay and replace the Vancouver-based digital financial company’s existing $30-million credit facility with Fortress.

The loan, which has a lower effective interest rate of 14.5 per cent and extends the maturity date by two years to mid-2020, will primarily be used to fund Mogo’s line of credit products.

The new credit facility is in addition to the company’s existing $50 million Fortress credit facility, which has an initial interest rate of 9.5 per cent and can be expanded up to $200 million.