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Borrowings
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Borrowings Borrowings
The following is a summary of the Company’s outstanding borrowings as of September 30, 2022 and December 31, 2021, including borrowing capacity as of September 30, 2022 (in thousands):
PurposeBorrowerBorrowing CapacitySeptember 30, 2022December 31, 2021
Interest Rate as of September 30, 2022
Maturity Date
Secured borrowing payableOpportunity Funding SPE II, LLC$1,758 $1,758 $22,443 15.00%—(1)
Senior debt
Revolving line of creditOpportunity Funding SPE III, LLC$175,000 $127,159 $119,000 
LIBOR plus 6.00%
January 2024
Revolving line of creditOpportunity Funding SPE V, LLC; Opportunity Funding SPE VII, LLC (Tranche A)75,000 37,500 45,900 
SOFR plus 7.36%
June 2025
Revolving line of creditOpportunity Funding SPE V, LLC; Opportunity Funding SPE VII, LLC (Tranche B)125,000 84,750 — 
SOFR plus 6.75%
June 2025
Revolving line of creditOpportunity Funding SPE VI, LLC— — 30,600 
LIBOR plus 7.25%
April 2023
Revolving line of creditOpportunity Funding SPE IV, LLC; SalaryTap Funding SPE, LLC45,000 — 7,500 
SOFR plus 0.11% plus 3.85%
February 2024
Revolving line of creditGray Rock SPV LLC75,000 40,055 — 
SOFR plus 7.25%
April 2025
Total revolving lines of credit495,000 289,464 203,000 
Term loan, netOppFi-LLC50,000 48,905 48,578 
LIBOR plus 10.00%
March 2025
Total senior debt$545,000 $338,369 $251,578 
Financed insurance premiumOppFi-LLC$84 $84 $— 4.59%December 2022
Financed insurance premiumOppFi-LLC2,424 2,424 — 7.07%July 2023
Notes payable$2,508 $2,508 $— 
(1)Maturity date extended indefinitely until borrowing capacity is depleted

Secured borrowing payable: As of September 30, 2022 and December 31, 2021, $165.0 million and $148.9 million, respectively, of finance receivables have been purchased with an active secured borrowing balance of $1.8 million and $22.4 million, respectively.

Interest expense related to secured borrowings was $0.1 million and $0.7 million for the three months ended September 30, 2022 and 2021, respectively, and $1.3 million and $2.0 million for the nine months ended September 30, 2022 and 2021, respectively. Additionally, the Company has capitalized $0.2 million in debt issuance costs related to secured borrowings. There were no amortized debt issuance costs related to secured borrowings for the three and nine months ended September 30, 2022. Amortized debt issuance costs related to secured borrowings were $4 thousand and $29 thousand, respectively, for the three and nine months ended September 30, 2021. As of September 30, 2022 and December 31, 2021, there were no unamortized debt issuance costs related to secured borrowings.

Senior debt:

Corporate credit agreement

On March 23, 2021, the borrowings under this revolving credit agreement were paid in full. Subsequent to repayment, OppFi-LLC terminated the revolving credit agreement. Interest expense related to the revolving credit agreement totaled $35 thousand for the nine months ended September 30, 2021. Additionally, the Company has capitalized $0.3 million in debt issuance costs
in connection with this facility. For the nine months ended September 30, 2021, amortized debt issuance costs were $21 thousand.

Revolving line of credit - Opportunity Funding SPE III, LLC

Interest expense related to this facility was $2.8 million and $1.9 million for the three months ended September 30, 2022 and 2021, respectively, and $8.0 million and $5.1 million for the nine months ended September 30, 2022 and 2021, respectively. Additionally, the Company has capitalized $2.1 million in debt issuance costs in connection with this facility. Amortized debt issuance costs associated with this facility were $0.1 million and $0.2 million for the three months ended September 30, 2022 and 2021, respectively, and $0.5 million and $0.5 million for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022 and December 31, 2021, the remaining balance of unamortized debt issuance costs associated with the facility was $0.2 million and $0.8 million, respectively.

Revolving line of credit - Opportunity Funding SPE V, LLC and Opportunity Funding SPE VII, LLC

On June 14, 2022, this revolving credit agreement was amended to, among other things, increase the size of the facility from $75 million to $200 million and extend the revolving period for an additional three years to June 14, 2025. Under the amendment, this revolving credit agreement was bifurcated into two tranches: Tranche A, in amount of $75 million, and Tranche B, in an amount of $125 million. The amendment also replaced the use of Adjusted LIBOR Rate with Term Secured Overnight Financing Rate (“SOFR”) as the benchmark interest rate for Tranche B.

Interest expense related to this facility was $2.9 million and $1.0 million for the three months ended September 30, 2022 and 2021, respectively, and $5.5 million and $2.5 million for the nine months ended September 30, 2022 and 2021, respectively. Additionally, the Company has capitalized $1.5 million in debt issuance costs in connection with this facility. Amortized debt issuance costs associated with this facility were $0.1 million and $0.1 million for the three months ended September 30, 2022 and 2021, respectively, and $0.4 million and $0.3 million for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022 and December 31, 2021, the remaining balance of unamortized debt issuance costs associated with this facility was $1.4 million and $0.4 million, respectively.

Revolving line of credit - Opportunity Funding SPE VI, LLC

On June 22, 2022, the borrowings under this revolving line of credit agreement were paid in full. Subsequent to repayment, OppFi-LLC terminated the revolving credit agreement.

Interest expense related to this facility was $0.6 million for the three months ended September 30, 2021. Interest expense related to this facility were $1.6 million and $1.7 million for the nine months ended September 30, 2022 and 2021, respectively. Additionally, the Company has capitalized $0.9 million in debt issuance costs in connection with this facility. Amortized debt issuance costs associated with this facility were $0.1 million for the three months ended September 30, 2021. Amortized debt issuance costs associated with this facility were $0.1 million and $0.2 million for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, there was no unamortized debt issuance costs associated with this facility. As of December 31, 2021, the remaining balance of unamortized debt issuance costs associated with this facility was $0.1 million.

Revolving line of credit - Opportunity Funding SPE IV, LLC and SalaryTap Funding SPE, LLC

On March 31, 2022, this revolving credit agreement was amended to bear interest in accordance with the SOFR at a per annum rate equal to the applicable SOFR rate plus a credit spread adjustment of 0.11% plus 3.85%.

Interest expense related to this facility was $0.1 million and $0.1 million for the three months ended September 30, 2022 and 2021, respectively, and $0.3 million and $0.3 million for the nine months ended September 30, 2022 and 2021, respectively. Additionally, the Company has capitalized $1.1 million in debt issuance costs in connection with this facility. Amortized debt issuance costs associated with this facility were $0.1 million and $0.1 million for the three months ended September 30, 2022 and 2021, respectively, and $0.2 million and $0.3 million for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022 and December 31, 2021, the remaining balance of unamortized debt issuance costs associated with this facility was $0.3 million and $0.3 million, respectively.

Revolving line of credit - Gray Rock SPV LLC

On April 15, 2022, Gray Rock SPV LLC entered into a revolving line of credit agreement that provides maximum borrowings of $75 million. Interest is payable monthly. Borrowings are secured by the assets of Gray Rock SPV LLC. The revolving line of credit agreement contains a financial covenant restricting dividend payments.
For the three and nine months ended September 30, 2022, interest expense related to this facility totaled $1.0 million and $1.5 million, respectively. Additionally, the Company has capitalized $0.5 million in debt issuance costs in connection with this facility. Amortized debt issuance costs associated with this facility were $0.1 million and $0.1 million for the three and nine months ended September 30, 2022, respectively. As of September 30, 2022, the remaining balance of unamortized debt issuance costs associated with this facility was $0.4 million.

Term loan, net

As of September 30, 2022 and December 31, 2021, the outstanding balance of $50.0 million was net of unamortized debt issuance costs of $1.1 million and $1.4 million, respectively.

Interest expense related to this facility was $1.6 million and $1.5 million for the three months ended September 30, 2022 and 2021, respectively, and $4.6 million and $3.7 million for the nine months ended September 30, 2022 and 2021, respectively. Additionally, the Company has capitalized $2.3 million in debt issuance costs in connection with this facility. Amortized debt issuance costs associated with this facility were $0.2 million and $0.1 million for the three months ended September 30, 2022 and 2021, respectively, and $0.4 million and $0.3 million for the nine months ended September 30, 2022 and 2021, respectively.

As of September 30, 2022, required payments for the term loan for each of the next five years are as follows (in thousands):

YearAmount
Remainder of 2022$— 
2023— 
2024— 
202550,000 
2026— 
Total$50,000 

Notes payable: In March 2022, OppFi entered into a financing agreement for the financing of insurance premiums totaling $0.3 million payable in ten monthly installments of $28 thousand through December 23, 2022. Interest expense related to this note payable was $2 thousand and $4 thousand for the three and nine months ended September 30, 2022, respectively.

In August 2022, OppFi entered into a financing agreement for the financing of insurance premiums totaling $2.9 million payable in eleven monthly installments of $0.3 million through July 15, 2023. Interest expense related to this note payable was $13 thousand for the three and nine months ended September 30, 2022.

Subordinated debt - related party: On March 30, 2021, the borrowings under this unsecured line of credit agreement were paid in full. Interest expense related to this related party transaction was $0.1 million for the nine months ended September 30, 2021.