Sezzle Expands WebBank Partnership to Add SezzleCash and Sezzle Send, Raises Net Worth Covenant to $100M
SEZL has more than doubled off its 52-week low of $49.5.
Summary
Sezzle expanded its WebBank partnership to launch SezzleCash and Sezzle Send, with WebBank retaining up to $30M in loans initially. The deal also raises the minimum tangible net worth covenant to $100M.
Key Events · Financing and Capital Events · SEZL
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New Products Added
SezzleCash (cash advance) and Sezzle Send (payments) will be originated and funded by WebBank under the amended agreements.
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Loan Retention Structure
WebBank will retain these new product loans on its balance sheet up to $30 million initially, with discretion to increase to $150 million.
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Covenant Increase
Minimum tangible net worth covenant raised from $12 million to $100 million, reflecting the expanded program's scale.
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New Termination Events
Added termination events for judgments, fines, penalties exceeding a threshold, and breaches of financial covenants.
Analysis · SEZL · Trade & Services
Sezzle amended its bank partnership agreements with WebBank to support two new products: SezzleCash (cash advance) and Sezzle Send (payments). WebBank will originate and fund these loans, retaining them on its balance sheet up to $30 million initially, expandable to $150 million. The amendment also raises the minimum tangible net worth covenant from $12 million to $100 million and adds termination events for judgments, fines, penalties, and covenant breaches. This expands Sezzle's product suite and revenue potential but also increases financial covenant requirements, reflecting WebBank's risk management as the program grows.
At the time of this filing, SEZL was trading at $118.00 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $3.9B. The 52-week trading range was $49.50 to $195.71. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.