Company: PGYWW
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001883085-25-000082
Chunk: 87

Company: Pagaya Technologies Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 87
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 the market price of our Class A Ordinary Shares.

Our net cash flows resulting from changes in operating assets and liabilities decreased by $25.9 million to net cash outflows of $24.1 million for the three months ended March 31, 2025 compared to net cash inflows of $1.9 million for the same period in 2024.  

Investing Activities 

Our primary uses of cash in investing activities are the purchase of risk retention assets of sponsored securitization vehicles and investments in equity method and other investments.  

For the three months ended March 31, 2025, net cash used in investing activities of $26.9 million was primarily attributable to purchases of risk retention assets of $81.9 million, which decreased by $179.7 million driven by management’s decision to purchase more than the required minimum risk retention holdings in the prior period, partially offset by proceeds received from existing risk retention assets of $58.7 million, which increased by $20.0 million.

Financing Activities 

For the three months ended March 31, 2025, net cash used in financing activities of $3.8 million was primarily attributable to $46.9 million of payment made to secured borrowing, $4.4 million of distributions made to noncontrolling interests, and $4.4 million of repayments made to long-term debt. These net cash outflows were offset by $49.2 million of proceeds from secured borrowing. 

Indebtedness

Exchangeable Senior Notes

On October 1, 2024, Pagaya US Holding Company LLC (“Pagaya US”), a wholly-owned subsidiary of the Company, issued $160 million in aggregate principal amount of 6.125% exchangeable senior notes due 2029 (the “Notes”). The issuance was in connection with a purchase agreement dated September 26, 2024, with certain initial purchasers. The Company intends to use the net proceeds from the Notes to repay higher-cost debt and reduce interest expense, with the remainder allocated for general corporate purposes.

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, and mature on October 1, 2029, unless earlier repurchased, redeemed, or exchanged. The Notes are exchangeable for cash, Class A Ordinary Shares of the Company, or a combination of both, at the Company’s discretion, subject