DailyPay Creates New Asset Class, Closes $200 Million Securitization of its On-Demand Pay Receivables To Support Top Employers In Ending The Archaic Two-Week Pay Cycle
With DailyPay, employers have an opportunity to modernize their relationship with their employees by offering their employees what they want and need: pay on their own schedule. DailyPay enables employers to offer on demand access to pay with no impact to their own cash flow management or payroll processes.
“In a recent study, more than half of Americans reported living paycheck-to-paycheck. And with rising inflation, consumer confidence is waning,” said Stacy Greiner the Chief Executive Officer of DailyPay. “Hard working people now more than ever deserve access to their pay as they earn it. They deserve a financial system that works for them and addresses their on-demand pace of life. Our new capital position enables us to help even more employers and their employees, fueling our rapid growth.”
“This securitization marks a first for our industry, with strong investor demand validating our differentiated approach to delivering On-Demand Pay,” said Deepa Subramanian, the Chief Financial Officer of DailyPay. “With $25 billion in payments volume, we are continuously looking for new ways to optimize our capital structure to support our growth ambitions.”
The offering included four classes of notes: Class A, Class B, Class C, and Class D. Morningstar DBRS rated all classes of notes, assigning ratings ranging from AA (sf) to BB (sf), respectively. Barclays acted as lead bookrunner and structuring agent, with Citi and Morgan Stanley serving as joint bookrunners. Latham & Watkins LLP advised DailyPay, and Mayer Brown LLP advised the bookrunners.
With the addition of the new $200 million securitization, DailyPay has secured nearly $1 billion in debt financing backed by its On-Demand Pay receivables, which includes its existing $760 million secured debt facility with Barclays, Citi, and TPG Angelo Gordon.
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About DailyPay
DailyPay is a worktech platform that offers industry-leading On-Demand Pay, as well as financial wellness solutions, for employers and employees. DailyPay serves a business-to-business-to-consumer (“B2B2C”) ecosystem with its mission to power daily opportunities by providing employers with solutions to create a more engaged and productive workforce and by empowering employees to live a better financial life. DailyPay’s platform, featuring an industry-leading On-Demand Pay solution, empowers employees to take control of their working lives, realize the benefit of their hard work in real time, and help them break living the paycheck-to-paycheck cycle. DailyPay’s main headquarters are based in New York City. For more information, please visit www.dailypay.com/press.
Media Contacts at DailyPay:
David Schwarz, Vice President of Public Relations at DailyPay
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Samantha Padilla, Media Relations Manager at DailyPay
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Julia Carr, Publicist at DailyPay
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