Shares of GreenSky (NASDAQ:GSKY) jumped on Thursday after the fintech company announced a new forward flow arrangement and extensions of agreements with existing bank partners. The stock was up 10.7% at 12:20 p.m. EST.
GreenSky, which connects borrowers with lenders, has reached an agreement in principle for a three-year, $6 billion forward flow arrangement with an institutional asset manager. The pricing for the deal "closely approximates our current Bank Partner economics," according to CEO David Zalik.
In addition, the company announced a one-year extension of its agreement with its largest bank partner, a three-year extension of its agreement with a different bank partner, and an increase in commitment from a third bank partner of $100 million.
The company gave no update on its ongoing review of strategic alternatives, which was announced in August.
"Our partnership with this leading institutional asset manager both diversifies and reinforces GreenSky's strong Bank Partner consortium. Consistent with GreenSky's mission to help businesses grow revenue at the point of sale while delighting their consumer customers, these funding relationships yield both flexibility and significant liquidity to fuel future growth," said Zalik.
Including Thursday's rally, the small-cap stock is down about 11% since the beginning of the year.