CapitalSource, City National Provide Harvest Capital Facility
Harvest Capital Credit, a specialty finance company that provides customized financing solutions to lower middle-market companies, announced that it closed a five-year senior secured credit facility with an initial commitment of $55 million. The credit facility was arranged by CapitalSource Bank. Both CapitalSource Bank and City National Bank are lenders under the facility.
The credit facility has an accordion feature which allows for an increase in the total loan size up to $85 million under certain conditions and has a two year revolving period followed by a three year amortization period. Borrowings under the credit facility will be at an interest rate of LIBOR plus 4.50%.
“Our new credit facility provides us with significant flexibility to continue to fund attractive investments in the lower middle market. Our partners at CapitalSource Bank and City National Bank have been very supportive during the structuring and underwriting process and we look forward to continuing to work closely with them,” commented Richard P. Buckanavage, president and chief executive officer.
In conjunction with the closing of the credit facility, the company terminated its credit facility with JMP Group, an affiliate of its investment advisor, HCAP Advisors, and owner of its administrator, JMP Credit Advisors.