Momentum Financial Services Group Renews Loan Facility with Ares, Upsizing It to C$810 Million
Key Takeaways
- •Ares Alternative Credit funds have increased their loan commitment to Momentum Financial Services Group from C$657.9 million to C$810 million, an increase of approximately C$152 million.
- •The renewed secured facility runs through January 2029 and includes an accordion feature permitting up to C$130 million of additional capacity, which would bring total committed capacity to C$940 million if drawn.
- •Momentum stated that the expanded financing reflects significant growth in its Canadian business over the past year.
- •The additional funding is intended to support Momentum's growing loan receivables portfolio and to help finance new products expected to launch in Canada and the United States.
- •Leaders at both companies characterized the agreement as a continuation of a longstanding partnership between Momentum and Ares.
Momentum Financial Services Group (official website), the provider of financial solutions operating under the Money Mart® brand, has announced the renewal and upsizing of its secured loan facility with Ares Alternative Credit funds (“Ares”). Under the renewed agreement, Ares has increased its commitment from C$657.9 million to C$810 million, an increase of roughly C$152 million. The facility also carries an accordion feature providing for up to an additional C$130 million of capacity — which would take total committed capacity to C$940 million if exercised — and its term has been extended through January 2029, giving the company committed funding visibility across multiple years.
The company said the expanded facility reflects the significant growth its Canadian business has experienced over the past year. The additional financing capacity is intended to support Momentum’s growing loan receivables portfolio and to help fund new products expected to launch in Canada and the United States in the near future. For a lending business, facility size effectively sets the ceiling on how far the loan book can expand, which is why the upsizing is tied directly to receivables growth rather than to general corporate purposes.
“This renewal builds on a longstanding and productive partnership with Ares and gives us the funding needed to keep pace with the growth we are seeing in Canada,” said Peter Kalen, CEO of Momentum Financial Services Group. “It also positions us to bring new products to market in Canada and the U.S., expanding the range of financial solutions available to our customers and connecting them to money when they need it most.”
“We are pleased to further extend our longstanding relationship with Momentum Financial Services Group as the company prepares to launch additional products in Canada and the U.S.,” said Felix Zhang, Partner in Ares Alternative Credit. “As a scaled provider, we look forward to supporting the company’s continued growth through this expanded facility.”
With the facility now in place through January 2029, the markers to watch are the new product launches Momentum says are expected in Canada and the U.S. in the near term, and whether the C$130 million accordion is ever drawn to extend capacity further.
Source: Globalfintechseries
