Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 71

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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 enter into sale and leaseback transactions, and make restricted payments and other distributions.  The Credit Agreement contains certain financial covenants customary for a credit facility of this type, which include, among other things, a maximum first lien leverage ratio, a minimum fixed charge coverage ratio and a minimum tangible book value ratio.  The Credit Agreement also contains affirmative covenants customary for a credit facility of its type, including customary reporting covenants.

The Credit Agreement includes events of default related to, among other things, failure to pay amounts due under the Credit Agreement, breaches of representations, warranties or covenants, defaults under other material indebtedness, certain events of 

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bankruptcy or insolvency, material judgment defaults and change of control, in each case, subject to customary cure periods where appropriate.

As of June 30, 2025, the Company had an outstanding balance of $314.5 million, which is recorded within long-term debt and current portion of long-term debt on the unaudited condensed consolidated balance sheet, and the Company had letters of credit issued in the amount of $20.5 million, and $37.5 million of remaining capacity available under the Revolving Credit Facility. As of June 30, 2025, the Company was in compliance with all covenants. 

On July 28, 2025, the Company fully paid off the outstanding principal balance of long-term debt of $332.1 million using the proceeds from the issuance of Senior Notes, as discussed above.

Contractual Obligations, Commitments and Contingencies 

During the normal course of business, we enter into certain lease contracts with lease terms through 2032. As of June 30, 2025, the total remaining contractual obligations are approximately $45.2 million, of which $9.7 million is for the next 12 months. From time to time, the Company enters into a purchase commitment with our third-party cloud computing web services providers. As of June 30, 2025, the total remaining contractual obligations from this purchase commitment are approximately $2.1 million, of which $1.7 million is for the next 12 months. The Company may pay more than the minimum purchase commitment based on usage. Additionally, the Company has contractual obligations related to its lease for corporate office space. See Note 7 for details regarding when these obligations are due.

In the ordinary course of business, the Company may provide indemnifications or loss guarantees of