$UPST · Upstart Holdings, Inc.

Upstart Holdings entered into a $200 million senior secured revolving credit facility with MUFG Bank on October 16, 2026. The facility is designed as bridge financing to fund the initial capitalization of Upstart Bank, N.A., with repayment triggered by loan sales to the bank once it opens. The revolver carries Term SOFR + 3.00% interest and includes covenants for $100M minimum liquidity and a 2.50x maximum secured gross leverage ratio.

Extended-hours trading shows UPST at $23.95, up +1.27% from the regular close of $23.65. The modest after-hours uptick suggests the market views the MUFG credit facility as a constructive step toward the Upstart Bank launch, though the move is contained given the facility's bridge nature and regulatory uncertainty.

The MUFG facility is a concrete step toward Upstart's bank charter, which would structurally lower its cost of funds and reduce reliance on third-party capital markets.

Fintech lenders continue pursuing bank charters to lower funding costs and gain deposit-based stability. Upstart's bridge facility mirrors SoFi's pre-charter financing strategy, using warehouse-style secured debt to fund loan originations until the bank entity is operational.

Upstart Bank's opening remains subject to regulatory approvals with no guaranteed timeline; failure to obtain approvals would strand the facility's purpose. Event of default triggers acceleration of all obligations and termination of the revolver.