Pathward Financial Results Presentation Deck
WAREHOUSE FINANCE
Total Exposure
●
$318.9 million
●
% of Total¹
Asset-backed warehouse lines of credit used to support strategic
initiatives.
8.7%
Lines are primarily secured by consumer receivables, whereby
Meta is in a senior, secured position as the first out participant.
Have never had a charge off or loss.
Agreements trigger waterfall protection for the "First Out"
participant:
The waterfall could be "triggered" due to items such as: collateral
underperformance, collateral days past due, covenant breaches,
concentration limit breaches, missed payments, regulatory events,
material adverse effects, etc.
EXAMPLE
Meta's)
In the example $100M scenario, all cash flows of the outstanding
facility are used to pay the First Out Tranche's (i.e.
outstanding principal and interest. The First Out's position must be
paid down in full prior to the junior and equity tranches receiving any
cash flow. Effectively, the First Out receives the benefit of $100M of
loans/collateral to pay down its $55M full principal and interest
position.
¹ Total includes total gross loans & leases of $3.44 billion and rental equipment, net of $206.7M, as of December 31, 2020
29
All Loan/Collateral Cash Flows
Admin Fees (0-5%)
First-Out Tranche (Meta
Position)
$55MM (55%)
Junior Tranche
$35MM (35%)
Equity Tranche
$10MM (10%)
QUARTERLY INVESTOR UPDATE | FIRST QUARTER FISCAL YEAR 2021 | NASDAQ: CASH
$100M
Facility
EXAMPLEView entire presentation