THL Credit Increases Credit Facility to $240 Million and Extends Maturity
BOSTON, March 19, 2013 (GLOBE NEWSWIRE) -- THL Credit, Inc. (Nasdaq: TCRD) ("THL Credit" or the "Company") today announced the closing of an additional $50 million of commitments to its senior secured revolving loan and term loan credit facilities (the "Credit Facility"), which brings the aggregate size of the Credit Facility to $240 million of commitments. THL Credit also extended the final maturity of the Credit Facility.
As part of the closing, the syndicated revolving portion of the Credit Facility led by ING Capital LLC (the "Revolver") was increased from $140 million to $170 million. The Revolver's availability period was extended one year to May 2016, followed by a one-year amortization period with a final maturity in May 2017. The pricing on the Revolver was reduced to LIBOR (with no floor) plus 3.25 percent, and plus 3.00 percent when the Revolver is drawn 35 percent or more.
Additionally, THL Credit raised an additional $20 million in the term loan portion of the Credit Facility (the "Term Loan"). The Term Loan has a bullet maturity which was extended one year to May 2018, and bears interest at LIBOR plus 4.00 percent (with no floor).
The Revolver and Term Loans each include an accordion feature permitting subsequent increases to either facility up to an aggregate maximum of $400 million of commitments.
"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 lender group. The increase and extension of our Credit Facility further expands our investment capacity, optimizes our current cost of capital and extends the maturity of our liabilities," said 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, New York and Houston. THL Credit is a direct lender that invests in subordinated, or mezzanine, debt and second lien secured debt, which may include an associated equity component such as warrants, preferred stock or other similar securities. THL Credit also selectively invests in first lien senior secured loans that generally have structures with higher interest rates, which include unitranche investments. In certain instances, THL Credit will also make direct equity investments and may also selectively invest in more liquid broadly syndicated loans from time to time. 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.
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About ING Capital LLC
ING Capital LLC is an indirect U.S. subsidiary of ING Bank NV, which is part of the global financial services company ING Group. ING Bank NV has 67,000 employees serving its clients through its extensive global network in the world's major financial services markets. ING Capital has built a leading position in corporate lending. The Investment Industry Finance (IIF) group at ING Capital offers a broad range of structured finance solutions to its clients active in the Investment Industry, including BDCs.