Sunlight Financial Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Debt Obligations (Tables)

Debt Obligations (Tables)

3 Months Ended

Mar. 31, 2023

Summary of Debt Obligations and Activity

Debt consists of the following:



	March 31, 2023											December 31, 2022
	Month Issued	Outstanding Face Amount		Carrying Value		Maximum Facility Size		Final Stated Maturity	Weighted Average			Carrying Value(a)
									Funding Cost		Life (Years)
Revolving credit facility(a)	Apr 2021	$	7,694	$	7,694	$	30,000	Apr 2023	9.9	%	0.1	$	20,613

a.In March 2016, Sunlight entered into a Loan and Security Agreement with a lender (“Prior Lender”). In May 2019, Sunlight and Prior Lender amended and restated the agreement to provide Sunlight a $15.0 million revolving credit facility (“Prior Facility”). In April 2021, Sunlight paid the Prior Facility in full using proceeds from a Loan and Security Agreement into which Sunlight entered with Silicon Valley Bank (“SVB”) and replaced the associated standby letter of credit. Borrowings under the current revolving credit facility, secured by the net assets of Sunlight Financial LLC, bear interest at a per annum rate equal to the sum of (i) a floating rate index and (ii) a fixed margin. The facility includes unused facility costs, and amounts borrowed under this facility are nonrecourse to Sunlight Financial Holdings Inc.

Activities related to the carrying value of Sunlight’s debt obligations were as follows:




	For the Three Months Ended March 31,

	2023		2022
Beginning Balance	$	20,613	$	20,613
Borrowings	—		—
Repayments	(12,919)		—
Amortization of deferred financing costs	—		—
Ending Balance	$	7,694	$	20,613

Schedule of Covenants

As of March 31, 2023, Sunlight’s financial covenants and calculated amounts were as follows (in millions):



	March 31, 2023
Covenant	Minimum		Amount
EBITDA Covenant(a)	$	5	$	(37)
Liquidity(b)	10		76
Available takeout commitment(c)	200		626

a.EBITDA Covenant for the six-month period ended each quarter of at least $5.0 million.

b.Unrestricted cash equal to, or greater than, the greater of (i) 35% of amounts borrowed under the revolving credit facility and (ii) $10.0 million.

c.Aggregate Direct Channel Partners' and Bank Partner's unused committed obligation to purchase and hold Loans of at least $200.0 million.