Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 139

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 139
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 Company had an outstanding balance of $314.5 million, which is recorded within long-term debt on the unaudited condensed consolidated balance sheet, and its aggregate future maturities consists of the following (in thousands): June 30, 20252025$8,875 202617,750 202717,750 202817,750 2029270,000 Total332,125 Debt issuance costs(17,578)Total long-term debt, net of debt issuance costs$314,547 As of June 30, 2025 and December 31, 2024, the Company had letters of credit issued in the amount of $20.5 million and $24.3 million, respectively, and $37.5 million and $25.7 million of remaining capacity available under the Revolving Credit Facility, respectively.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. See Note 15 for additional information. Exchangeable 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 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 $3.1 million and $6.1 million of interest expense, including $0.6 million and $1.2 million of amortization of debt issuance costs, for the three and six months ended June 30, 2025. The effective interest