THL Credit Increases Revolving Credit Facility to $140 Million and Raises $50 Million Term Loan
BOSTON, May 10, 2012 (GLOBE NEWSWIRE) -- THL Credit, Inc. (Nasdaq: TCRD) ("THL Credit" or the "Company") today announced an increase and extension of its syndicated revolving credit facility led by ING Capital LLC (the "Revolver") from $125 million to $140 million. The Revolver's availability period was extended from March 2013 to May 2015, followed by a one-year amortization period with a final maturity in May 2016. The pricing on the Revolver was reduced to LIBOR plus 3.25% when the facility is more than 35% drawn. Otherwise, the interest rate remains at LIBOR plus 3.50%, with no floor.
Additionally, THL Credit raised a $50 million, five-year term loan financing (the "Term Loan") in a separate syndicated facility also led by ING Capital. The term loan has a bullet maturity in May 2017 and bears interest at LIBOR plus 4.00%, with no floor. Simultaneously, using an interest rate swap, the Company converted the variable rate pricing on the Term Loan to an effective all-in fixed rate of 5.14%.
The Revolver and Term Loans each include an accordion feature permitting subsequent increases to either facility up to an aggregate maximum of $225 million.
"We value the strong relationships with our existing lenders and appreciate their continued support. We are also pleased to welcome our two new lenders that have joined our Revolver and Term Loan syndicates. The new Term Loan as well as the increase and extension of our Revolver significantly expand our investment capacity to support our growth, optimize our cost of capital and extend the maturity of our liabilities," noted James K. Hunt, chief executive officer of THL Credit.
About THL Credit
THL Credit is an externally-managed, non-diversified closed-end management investment company that has elected to be treated as a business development company (BDC) under the Investment Company Act of 1940. THL Credit's investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of middle market companies.
THL Credit is headquartered in Boston, with additional investment teams in Los Angeles and Houston. THL Credit invests primarily in junior capital securities, including subordinated debt and second lien secured debt, which junior capital may include an associated equity component such as warrants, preferred stock or other similar securities. THL Credit may also selectively invest in first lien secured loans. THL Credit targets investments in middle market companies with annual revenues of between $25 million and $500 million that require capital for growth and acquisitions. THL Credit's investment activities are managed by THL Credit Advisors LLC, an investment adviser registered under the Investment Advisers Act of 1940.
The THL Credit logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=12478
About ING Capital LLC
ING Capital LLC is a US subsidiary of ING Bank NV, which is part of ING Group, a global financial services company. ING Bank NV and its subsidiaries have approximately 68,000 employees serving their clients through an extensive global network in the world's major financial services markets. ING has built a leading position in corporate finance, including lending and mergers & acquisitions.