Fintech Pagaya Hikes Pricing on $399 Million Subprime Debt Deal

Pagaya Technologies Ltd. was forced to offer higher rates on an asset-backed bond sale as the lender faces heightened investor scrutiny.

The fintech raised $399 million through bonds tied to subprime auto loans in a seven-part offering, according to a person with direct knowledge of the matter. The largest tranche, of $112.7 million with top ratings of AAA, priced at 1.5 percentage points above the benchmark rate, the person said, asking not to be identified discussing a private matter. That compares with a previous guidance of 1.25 to 1.3 percentage points.

Representatives for Banco Santander SA and Deutsche Bank AG, ...