8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

November 1, 2019

On Deck Capital, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-36779	42-1709682
(State or other jurisdiction of incorporation)	(Commission File Number)	(I. R. S. Employer Identification No.)

1400 Broadway, 25th Floor

New York, New York 10018

(Address of principal executive offices, including ZIP code)

(888) 269-4246

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.005 per share	ONDK	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b– 2 of the Securities Exchange Act of 1934 (§ 240.12b–2 of this chapter).

Emerging growth company x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x

Item 7.01 Regulation FD Disclosure.

The information in this Current Report on Form 8-K, including, without limitation, Exhibit 99.1, is being furnished pursuant to Item 7.01 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly provided by specific reference in such filing. Furthermore, this report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD.

Proposed Private Notes Offering

On Deck Capital, Inc. (the “Company”) is furnishing this report to provide information about a proposed private offering of $125.0 million in aggregate principal amount of Series 2019-1 Fixed Rate Asset-Backed Notes (the “OfferedNotes”), by its wholly-owned subsidiary, OnDeck Asset Securitization Trust II LLC, which will issue the Offered Notes (the “Issuer”). Collateral for the Offered Notes will consist of, among other things, a revolving pool of the Company’s small business loans. The Offered Notes may be issued in one or more classes. The Issuer will use the net proceeds of the proposed private offering to purchase small business loans from the Company that will be pledged as collateral for the Offered Notes. The Company will use the money it receives from the Issuer for general corporate purposes including debt repayment.

The exact terms and timing of the proposed offering will depend upon market conditions and other factors. The Issuer will be the sole obligor of the Offered Notes; the Offered Notes will not be obligations of, or guaranteed by, the Company.

The Offered Notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from, or a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Offered Notes are being offered only to qualified institutional buyers under Rule 144A and to persons outside the United States pursuant to Regulation S under the Securities Act.

This Current Report on Form 8-K is not an offer to sell, nor a solicitation of an offer to buy, any securities, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. Any offers of the securities will be made only by means of a private offering memorandum.

Disclosure of Supplemental Information Relating to the Offered Notes

On November 1, 2019, the Company intends to make certain of its supplemental historic loan performance and other data (collectively, the “Supplemental Data”) available during informational meetings with qualified third parties that are potential purchasers of the Offered Notes. A copy of the Supplemental Data is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein solely for purposes of this Item 7.01.

By design, the Supplemental Data is different from, and not directly comparable to, the Company’s previously published loan performance information. The Supplemental Data includes information for a specific subset of the Company’s daily and weekly pay U.S. term loans, including both on-balance sheet loans and loans sold to investors, that: (i) have an original term of 24 months or less; (ii) a specified minimum loan yield (excluding origination fees) greater than or equal to 10%; and (iii) were underwritten using a specified minimum amount of monthly bank data. The Supplemental Data also includes information for a specific subset of the Company’s daily and weekly pay U.S. term loans and lines of credit, including both on-balance sheet loans and loans sold to investors, that: (i) have an original term of 24 months or less; (ii) a specified minimum loan yield (excluding origination fees) greater than or equal to 10%; and (iii) were underwritten using a specified minimum amount of monthly bank data.

In addition, the Supplemental Data sets forth certain historical delinquency data on the basis of “missed payment factor,” as defined on Exhibit 99.1, and not calendar days past due for term loans and lines of credit. The Supplemental Data also sets forth certain historical delinquency data on the basis of cumulative net loss for term loans as well as annualized net loss rate for each of term loan and line of credit. As described in more detail on Exhibit 99.1, the Supplemental Data includes information as of and for the dates and periods shown.

No assurance is given that the Supplemental Data is indicative of the future performance of the Company’s existing or future on-balance sheet loans, or loans sold or loans to be sold. The Company undertakes no duty to update the Supplemental Data in the future except as may be required by applicable law. The furnishing of the Supplemental Data is not an admission as to the materiality of all or any portion thereof. The Supplemental Data is not to be viewed in isolation and is intended to be considered in the context of more complete information included in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, and other public filings or announcements that the Company has made and may make from time to time with the SEC, by press release or otherwise.

Cautionary Note Regarding Forward-Looking Statements

This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and other legal authority. Forward-looking statements can be identified by words such as “proposed,” “will,” “enables,” “expects,” “allows,” “continues,” “believes,” "anticipates,” "estimates” or similar expressions. These include statements regarding the proposed private offering of the Offered Notes, the contemplated size of the proposed offering of the Offered Notes, possible completion of the proposed offering of the Offered Notes and the prospective impact of the proposed offering of the Offered Notes. Forward-looking statements are neither historical facts nor assurances of future performance. They are based only on our current beliefs, expectations and assumptions regarding the future of our business, anticipated events and trends, the economy and other future conditions. As such, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and in many cases outside our control. Therefore, you should not rely on any of these forward-looking statements.  Our expected results may not be achieved, and actual results may differ materially from our expectations.  There can be no assurance that the proposed offering of the Offered Notes will be completed as currently contemplated or at all. Factors that could cause or contribute to actual results differing from our forward-looking statements include risks relating to: risks relating to changes in the financial markets, including changes in credit markets, interest rates, securitization markets generally and our proposed private offering in particular, that can impact the willingness of investors to buy the Offered Notes and the prices and interest rates that investors may require; adverse developments regarding the Company, its business or the online or broader marketplace lending industry generally, which could impact demand for or pricing of the Offered Notes; and other risks, including those described in Part I - Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2018, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 and in other documents that we file with the SEC from time to time, which are or will be available on the SEC's website at  www.sec.gov . Except as required by law, we undertake no duty to update the information in this report.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Supplemental Company small business loan performance and other data.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: November 1, 2019	On Deck Capital, Inc.
	/s/ Kenneth A. Brause
	Kenneth A. Brause Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Supplemental Company small business loan performance and other data.

EX-99.1

Exhibit 99.1

Delinquencies and Net Charge-Offs

The following Supplemental Data provides historical information relating to (1) delinquency experience as of the dates indicated for a specific subset of the Company's daily and weekly pay U.S. term loans and lines of credit (as indicated in the headings below), including both on-balance sheet loans and loans sold to investors, as further described in Item 7.01 of the Current Report on Form 8-K to which this Exhibit 99.1 is attached, (2) static pool net charge-off data for such term loans originated in the particular year or quarter specified in such net charge-off table and (3) annualized net charge-off data for such term loans and lines of credit (as indicated in the headings below) as of the particular year or quarter specified in such annualized net charge-off table.

Term Loan Delinquency Experience¹ 

	9/30/2019	12/31/2018	12/31/2017	12/31/2016	12/31/2015	12/31/2014	12/31/2013
Number of Term Loans Outstanding	20,491	21,155	17,892	20,261	17,221	11,973	5,948
Aggregate Unpaid Principal Balance	$853,279,590	$892,939,732	$776,780,205	$997,991,044	$788,686,015	$493,772,084	$202,239,397
Unpaid Principal Balance of Past Due Term Loans
1-14 missed payment factor	$15,641,468	$29,504,036	$38,494,069	$38,626,280	$34,274,349	$27,899,490	$11,182,821
15-30 missed payment factor	$18,455,562	$20,378,959	$17,032,209	$20,684,600	$13,552,302	$9,530,097	$4,495,233
31-45 missed payment factor	$13,061,483	$13,772,105	$10,710,247	$15,652,409	$10,830,661	$7,150,275	$2,791,401
46-60 missed payment factor	$12,271,121	$12,410,006	$7,906,808	$13,730,940	$8,536,446	$5,114,054	$2,436,183
61+ missed payment factor	$56,789,762	$30,730,149	$18,857,558	$13,946,663	$11,655,021	$7,687,310	$3,175,836
Term Loans past due as a % of Unpaid Principal Balance
1-14 missed payment factor	1.83%	3.30%	4.96%	3.87%	4.35%	5.65%	5.53%
15-30 missed payment factor	2.16%	2.28%	2.19%	2.07%	1.72%	1.93%	2.22%
31-45 missed payment factor	1.53%	1.54%	1.38%	1.57%	1.37%	1.45%	1.38%
46-60 missed payment factor	1.44%	1.39%	1.02%	1.38%	1.08%	1.04%	1.20%
61+ missed payment factor	6.66%	3.44%	2.43%	1.40%	1.48%	1.56%	1.57%

______________

1) The delinquency experience is measured by the missed payment factors of the loans. The missed payment factor of a daily pay loan is the sum of the total past due amount of scheduled loan payments thereunder divided by the required daily scheduled loan payment thereunder plus the number of scheduled loan payment dates (if any) past the maturity date on which scheduled loan payment were due but not received on such loan. The missed payment factor of a weekly pay loan is calculated utilizing the same methodology, normalized to account for loans with only one scheduled payment per week.

Line of Credit Delinquency Experience² 

	9/30/2019	12/31/2018	12/31/2017	12/31/2016	12/31/2015	12/31/2014	12/31/2013
Number of Line of Credit Loans Outstanding	16,645	15,453	13,363	12,329	7,555	3,054	312
Aggregate Unpaid Principal Balance	$248,649,276	$182,848,272	$126,009,202	$109,019,568	$60,855,462	$24,175,489	$2,394,294
Unpaid Principal Balance of Past Due Lines of Credit
1-14 missed payment factor	$4,577,766	$3,357,156	$2,598,573	$3,195,409	$4,407,729	$1,771,816	$75,259
15-30 missed payment factor	$2,965,415	$2,231,155	$1,733,121	$1,497,065	$1,161,555	$386,131	$38,535
31-45 missed payment factor	$2,485,155	$1,815,421	$1,438,543	$1,322,353	$599,079	$234,963	$0
46-60 missed payment factor	$2,086,361	$971,428	$1,263,249	$1,326,815	$690,041	$190,088	$0
61+ missed payment factor	$5,793,982	$4,444,421	$1,739,408	$855,063	$671,455	$480,289	$0
Lines of Credit past due as a % of Unpaid Principal Balance
1-14 missed payment factor	1.84%	1.84%	2.06%	2.93%	7.24%	7.33%	3.14%
15-30 missed payment factor	1.19%	1.22%	1.38%	1.37%	1.91%	1.60%	1.61%
31-45 missed payment factor	1.00%	0.99%	1.14%	1.21%	0.98%	0.97%	0.00%
46-60 missed payment factor	0.84%	0.53%	1.00%	1.22%	1.13%	0.79%	0.00%
61+ missed payment factor	2.33%	2.43%	1.38%	0.78%	1.10%	1.99%	0.00%

______________

2) The delinquency experience is measured by the missed payment factors of the line of credit loans. The missed payment factor of a daily pay loan is the sum of the total past due amount of scheduled loan payments thereunder divided by the required daily scheduled loan payment thereunder plus the number of scheduled loan payment dates (if any) past the maturity date on which scheduled loan payment were due but not received on such loan. The missed payment factor of a weekly pay loan is calculated utilizing the same methodology, normalized to account for loans with only one scheduled payment per week. Historically, line of credit loans have been weekly pay loans.

Term Loan Cumulative Net Charge-Off Experience³ 

Originations Vintages (based on calendar year or quarter)

	2019 Q3	2019 Q2	2019 Q1	2018	2017	2016	2015	2014	2013
Number of Loans Originated	7,251	6,920	7,899	31,115	24,707	28,154	26,538	18,143	8,999
Aggregate Original Principal Balance ($)	$444,640,061	$403,533,645	$448,541,660	$1,836,698,494	$1,570,601,965	$1,883,389,824	$1,582,010,539	$956,825,733	$394,061,599
Weighted Average Term	13.7	12.3	11.7	11.8	12.3	13.4	12.6	11.5	10.4

Cumulative Net Charge-Offs (as a percent of aggregate original principal balance)⁴ 

Months since origination
1	0.00%	0.00%	0.00%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%
2		0.08%	0.04%	0.04%	0.01%	0.01%	0.01%	0.00%	0.00%
3		0.08%	0.18%	0.10%	0.03%	0.03%	0.04%	0.00%	0.00%
4		0.22%	0.27%	0.28%	0.28%	0.17%	0.15%	0.15%	0.20%
5			0.56%	0.81%	1.05%	0.76%	0.67%	0.68%	0.91%
6			1.34%	1.75%	1.97%	1.84%	1.31%	1.62%	1.89%
7			2.13%	2.77%	2.81%	3.00%	2.21%	2.58%	2.84%
8				3.78%	3.57%	4.30%	3.15%	3.47%	3.83%
9				4.64%	4.24%	5.32%	3.93%	4.11%	4.48%
10				5.39%	4.79%	6.21%	4.68%	4.74%	4.88%
11					5.21%	6.79%	5.31%	5.13%	5.29%
12					5.49%	7.32%	5.68%	5.40%	5.79%
13					5.72%	7.76%	6.03%	5.66%	6.12%
14					5.89%	8.10%	6.32%	5.78%	6.32%
15					6.05%	8.34%	6.51%	6.02%	6.44%
16					6.13%	8.43%	6.65%	6.19%	6.46%
17					6.20%	8.53%	6.71%	6.31%	6.44%
18					6.26%	8.62%	6.79%	6.39%	6.45%
19					6.30%	8.65%	6.85%	6.43%	6.49%
20					6.31%	8.68%	6.90%	6.48%	6.55%
21					6.31%	8.70%	6.92%	6.49%	6.57%
22					6.29%	8.69%	6.95%	6.50%	6.56%
23						8.66%	6.94%	6.51%	6.61%
24						8.65%	6.94%	6.52%	6.63%
25						8.63%	6.93%	6.53%	6.64%
26						8.61%	6.92%	6.53%	6.68%
27						8.59%	6.91%	6.53%	6.72%
28						8.58%	6.91%	6.54%	6.72%
29						8.55%	6.91%	6.53%	6.72%
30						8.54%	6.89%	6.53%	6.73%

__________________________

3) The historical information above reflects net charge-offs for a specific subset of the Company’s daily and weekly pay U.S. term loans, including both on-balance sheet loans and loans sold to investors, as further described in Item 7.01 of the Current Report on Form 8-K to which this Exhibit 99.1 is attached that were charged-off by the Company in accordance with its then-existing policies and procedures. The data shown above for the referenced annual or quarterly vintages represents the loans originated during such year or quarter as a static pool, and illustrates how such vintages have performed given equivalent months of seasoning.

4) Cumulative net charge-offs (as a percent of aggregate original principal balance) are only included for those vintages and months since origination for which performance history exists for each loan of such vintage over such number of months since origination.

Term Loan Annualized Net Charge-Offs Experience⁵ 

	2019YTD	2018	2017	2016	2015	2014	2013
Average Number of Term Loans Outstanding	21,307	19,335	19,615	18,642	14,995	8,689	3,938
Average Aggregate Unpaid Principal Balance	$873,292,318	$834,675,250	$879,986,117	$894,315,290	$643,427,809	$331,393,502	$127,298,590
Net Charge-Offs	$95,061,791	$97,059,913	$155,983,195	$124,071,489	$78,230,361	$33,431,578	$12,132,234
Annualized Net Charge-Off Rate	14.51%	11.63%	17.73%	13.87%	12.16%	10.09%	9.53%

Line of Credit Annualized Net Charge-Offs Experience⁶ 

	2019YTD	2018	2017	2016	2015	2014	2013
Average Number of Lines of Credit Outstanding	16,153	14,201	12,853	10,146	5,333	1,492	145
Average Aggregate Unpaid Principal Balance	$219,677,237	$150,648,275	$117,480,376	$87,969,645	$41,610,682	$11,640,009	$1,024,526
Net Charge-Offs	$15,982,922	$12,591,655	$16,881,117	$11,604,201	$5,357,674	$1,006,272	$0
Annualized Net Charge-Off Rate	9.70%	8.36%	14.37%	13.19%	12.88%	8.64%	0.00%

__________________

5) The historical information in this table reflects net charge-offs for a specific subset of the Company’s daily and weekly pay U.S. term loans, including both on-balance sheet loans and loans sold to investors, as further described in Item 7.01 of the Current Report on Form 8-K to which this Exhibit 99.1 is attached that were charged-off by the Company in accordance with its then-existing policies and procedures.

6) The historical information in this table reflects net charge-offs for a specific subset of the Company’s daily and weekly pay U.S. line of credit loans, including both on-balance sheet loans and loans sold to investors, as further described in Item 7.01 of the Current Report on Form 8-K to which this Exhibit 99.1 is attached that were charged-off by the Company in accordance with its then-existing policies and procedures.