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Debt (Tables) | 9 Months Ended
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Sep. 30, 2023
Debt Disclosure [Abstract] |
Schedule of Debt | The following table summarizes the components of our debt:
|  | September 30, 2023 |  | December 31, 2022
Borrowing Description |  | Total Collateral(1) |  | Stated Interest Rate(2) |  | Termination/Maturity(3) |  | Total Capacity |  | Total Outstanding(4) |  | Total Outstanding
Debt Facilities |  |  |  |  |  |  |  |  |  |  |  |
Personal loan warehouse facilities |  | $ | 2,118,409 |  |  | 5.56% – 7.29% |  | January 2024 – January 2032 |  | $ | 4,725,000 |  |  | $ | 1,778,474 |  |  | $ | 1,452,085 |
Student loan warehouse facilities |  | 2,557,824 |  |  | 5.86% – 7.16% |  | April 2024 – June 2026 |  | 3,395,000 |  |  | 2,111,532 |  |  | 1,504,926 |
Credit card warehouse facility |  | — |  |  | 6.75% |  | March 2025 |  | 100,000 |  |  | — |  |  | — |
Risk retention warehouse facilities(5) |  | 87,818 |  |  | 5.43% – 7.42% |  | January 2024 – October 2027 |  | 200,000 |  |  | 71,745 |  |  | 101,964 |
Revolving credit facility(6) |  |  |  | 6.92% |  | April 2028 |  | 645,000 |  |  | 486,000 |  |  | 486,000 |
Other Debt |  |  |  |  |  |  |  |  |  |  |  |
Convertible senior notes(7) |  |  |  | —% |  | October 2026 |  |  |  | 1,200,000 |  |  | 1,200,000 |
Other financing(8) |  | 158,910 |  |  |  |  |  |  | 200,247 |  |  | — |  |  | — |
Securitizations |  |  |  |  |  |  |  |  |  |  |  |
Personal loan securitizations |  | 620,863 |  |  | 0.49% – 6.21% |  | September 2030 – May 2031 |  |  |  | 374,172 |  |  | 529,132 |
Student loan securitizations |  | 286,181 |  |  | 1.83% – 4.44% |  | March 2040 – August 2048 |  |  |  | 247,911 |  |  | 246,856 |
Total, before unamortized debt issuance costs, premiums and discounts |  |  |  |  |  |  |  |  |  | $ | 6,269,834 |  |  | $ | 5,520,963 |
Less: unamortized debt issuance costs, premiums and discounts |  |  |  |  |  |  |  |  |  | (28,448) |  |  | (35,081) |
Total debt |  |  |  |  |  |  |  |  |  | $ | 6,241,386 |  |  | $ | 5,485,882 |
_________________ (1)As of September 30, 2023, represents the total of the unpaid principal balances within each debt category, with the exception of the risk retention warehouse facilities, which include securitization-related investments carried at fair value. In addition, certain securitization interests that eliminate in consolidation are pledged to risk retention warehouse facilities. Collateral balances relative to debt balances may vary period to period due to the timing of the next scheduled payment to the warehouse facility. (2)For variable-rate debt, the ranges of stated interest rates are based on the interest rates in effect as of September 30, 2023. The interest on our variable-rate debt is typically designed as a reference rate plus a spread. Reference rates as of September 30, 2023 included overnight Secured Overnight Financing Rate (“SOFR”), one-month SOFR, three-month SOFR, prime rate and commercial paper rates determined by the facility lenders. As debt arrangements are renewed, the reference rate and/or spread are subject to change. Unused commitment fees ranging from 0 to 65 basis points (“bps”) on our various warehouse facilities are recognized within noninterest expense—general and administrative in our condensed consolidated statements of operations and comprehensive loss. (3)For securitization debt, the maturity of the notes issued by the various trusts occurs upon either the maturity of the loan collateral or full payment of the loan collateral held in the trusts. Our maturity date represents the legal maturity of the last class of maturing notes. Securitization debt matures as loan collateral payments are made. (4)There were no debt discounts or premiums issued during the nine months ended September 30, 2023. (5)For risk retention warehouse facilities, we only state capacity amounts for facilities wherein we can pledge additional asset-backed bonds and residual investments as of the balance sheet date. (6)As of September 30, 2023, $5.1 million of the revolving credit facility total capacity was not available for general borrowing purposes because it was utilized to secure a letter of credit. Refer to our letter of credit disclosures in Note 15. Commitments, Guarantees, Concentrations and Contingencies for more details. Additionally, the interest rate presented is the interest rate on standard withdrawals on our revolving credit facility, while same-day withdrawals incur interest based on the prime rate. (7)The original issue discount and debt issuance costs related to the convertible senior notes are amortized into interest expense—corporate borrowings in the condensed consolidated statements of operations and comprehensive loss using the effective interest method over the contractual term of the notes. For the three and nine months ended September 30, 2023, total interest expense on the convertible notes was $1,274 and $3,819, respectively. For the three and nine months ended September 30, 2022, total interest expense on the convertible notes was $1,270 and $3,805, respectively. For all periods, interest expense was related to amortization of debt discount and issuance costs, and the effective interest rate was 0.42%. As of September 30, 2023 and December 31, 2022, unamortized debt discount and issuance costs were $15.6 million and $19.4 million, respectively, and the net carrying amount was $1.18 billion and $1.18 billion, respectively. (8)Includes $23.0 million of loans and $135.9 million of investment securities pledged as collateral to secure $150.2 million of available borrowing capacity with the Federal Home Loan Bank (“FHLB”), of which $13.7 million was not available as it was utilized to secure letters of credit. Refer to our letter of credit disclosures in Note 15. Commitments, Guarantees, Concentrations and Contingencies for more details. Also includes unsecured available borrowing capacity of $50.0 million with correspondent banks.
Schedule of Maturities of Borrowings | Future maturities of our outstanding debt with scheduled payments, which included our revolving credit facility and convertible notes, were as follows:
| September 30, 2023
Remainder of 2023 | $ | — |
2024 | — |
2025 | — |
2026 | 1,200,000 |
2027 | — |
Thereafter | 486,000 |
Total | $ | 1,686,000 |

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