Quarterly report pursuant to Section 13 or 15(d)

Debt Obligations (Tables)

v3.23.2
Debt Obligations (Tables)
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Summary of Debt Obligations and Activity
Debt consists of the following:
June 30, 2023 December 31, 2022
Month Issued Outstanding Face Amount Carrying Value Maximum Facility Size Final Stated Maturity Weighted Average
Carrying Value(a)
Funding Cost(a)
Life (Years)
Secured Term Loan(b)(c)
Apr 2023 $ 76,987  $ 52,267  $ 100,000  Oct 2025 18.9  % 1.5 n.a.
Revolving credit facility(d)
n.a. n.a. n.a. n.a. n.a. n.a. n.a. $ 20,613 
a.Excludes unamortized allocated discount and deferred financing costs.
b.Carrying value reflects $24.7 million of unamortized allocated discount and deferred financing costs at June 30, 2023.
c.In April 2023, Sunlight entered into a Loan and Security Agreement with its Bank Partner and repaid the Prior Facility (defined below) in full. Borrowings under the Secured Term Loan, secured by the net assets of Sunlight Financial LLC and guaranteed by SL Financial Holdings Inc., a wholly-owned subsidiary of the Company, bear interest at a per annum rate equal to the sum of (i) a floating rate index and (ii) a fixed margin. Sunlight may borrow an aggregate $88.6 million between tranches of the Secured Term Loan and apply facility interests and fees paid-in-kind up to the $100.0 million maximum facility size. The facility includes unused facility costs, and amounts borrowed under this facility are nonrecourse to Sunlight Financial Holdings Inc. Sunlight may prepay the Secured Term Loan without penalty, and is subject to mandatory prepayment under certain conditions including liquidity thresholds, upon a liquidation, winding up, change of control, merger, sale of all or substantially all of the assets of Sunlight, or a transaction that results in the Company becoming privately held.
d.In April 2021, Sunlight entered into a Loan and Security Agreement with Silicon Valley Bank (“SVB”) (the “Prior Facility”), including a standby letter of credit. Borrowings under the Prior Facility, secured by the net assets of Sunlight Financial LLC, bore 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 were 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 June 30, For the Six Months Ended June 30,
2023 2022 2023 2022
Beginning Balance $ 7,694  $ 20,613  $ 20,613  $ 20,613 
Borrowings 76,987  —  76,987  — 
Deferred financing cost (25,588) —  (25,588) — 
Repayments (7,694) —  (20,613) — 
Amortization of deferred financing costs 868  —  868  — 
Ending Balance $ 52,267  $ 20,613  $ 52,267  $ 20,613 
Schedule of Covenants
As of June 30, 2023, Sunlight’s financial covenants and calculated amounts were as follows (in millions):

June 30, 2023
Covenant Threshold Amount
Maximum Indirect Channel Loans held by Bank Partner $ 550  $ 521 
Minimum unrestricted cash 20  80 
Minimum cash held at Bank Partner(a)
65  28 
a.Sunlight’s Bank Partner waived this covenant and other nonfinancial covenants.