Klarna Strikes $6.5 Billion Loan-Sale Deal With Elliott Funds To Fuel US Growth
Synopsis
Detailing the terms of the agreement with Elliott, Klarna said in an announcement that it will be able to sell its existing Fair Financing portfolio partially.
Klarna Group Plc. (KLAR), on Tuesday, announced that it inked a deal with Elliott Investment Management to sell up to $6.5 billion of its loans to funds managed by the U.S.-based investment firm.
Detailing the terms of the agreement with Elliott, Klarna announced in a statement that it will be able to sell its existing Fair Financing portfolio partially. From October onwards, it would be able to sell newly originated Fair Financing loans to funds managed by Elliott on a rolling basis.
“The transaction provides scalable, off-balance-sheet funding to support Klarna’s growing U.S. consumer credit business,” Klarna stated.
Klarna shares were down by 0.3% in Tuesday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘bullish’ territory at the time of writing.
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