Company: PGYWW
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001883085-25-000082
Chunk: 14

Company: Pagaya Technologies Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 $24.3 million, with $25.7 million of remaining capacity available under the Revolving Credit Facility. Exchangeable Senior NotesOn October 1, 2024, the Company, through a wholly owned subsidiary of the Company, issued $160 million aggregate principal amount of its 6.125% Exchangeable Senior Notes (“Notes”) due 2029. The issuance was in connection with a purchase agreement dated September 26, 2024, with certain initial purchasers. The Notes bear interest at a rate of 6.125% per annum, payable semiannually in arrears on April 1 and October 1 of each year, beginning April 1, 2025. The Notes will mature on October 1, 2029, unless earlier repurchased, redeemed, or exchanged.The Company accounted for the issuance of the Notes as a single liability at par as the conversion feature does not require bifurcation as a derivative under ASC 815 and the Notes were not issued at a substantial premium. Debt issuance costs related to the Notes totaled $6.2 million and consisted of underwriting fees and third-party offering costs, which are amortized to interest expense using the effective interest method over the contractual term. The Company recorded $3.0 million of interest expense, including $0.6 million of amortization of debt issuance costs, three months ended March 31, 2025. The effective interest rate of the Notes is 8.7%.

NOTE 5 - INVESTMENTS

Investments in Loans and SecuritiesThe amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of investments in loans and securities as of March 31, 2025 and December 31, 2024 were as follows (in thousands). As provided in Note 6, a portion of these investments in loans and securities are consolidated as a result of the Company’s determination that it is the primary beneficiary of certain VIEs.As of March 31, 2025Investments in loans and securities, available for sale(1):Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesFair ValueSecuritization notes$247,039 $341 $(303)$(2,873)$244,204 Securitization certificates999,129 6,785 (29,481)(462,436)513,997 Other loans and receivables3,503