Capital Southwest announced that I-45 SLF, (I-45), a joint venture with Main Street Capital, closed on a $75 million 5-year senior secured credit facility with Deutsche Bank AG, New York. The facility includes an accordion feature which should allow I-45 to achieve expected leverage of up to 2x debt-to-equity. Deutsche Bank AG, New York will also act as administrative agent on the deal.

“We are excited about our relationships with both Main Street and Deutsche Bank. With expected eventual leverage of 2x debt-to-equity within this facility, I-45 will have approximately $250 million of investable capital to deploy,” said Michael S. Sarner, chief financial officer of Capital Southwest.

On September 9, 2015, the company and Main Street entered into an agreement to co-manage I-45, a senior loan fund formed to invest primarily in syndicated senior secured loans in the upper middle market.

The company and Main Street have equal representation on I-45’s board of managers. The total commitment to I-45 between the company and Main Street is $85 million, with the company providing $68 million and Main Street providing $17 million. The company owns 80% of I-45 and has a profits interest of 75.6%, while Main Street owns 20% of I-45 and has a profits interest of 24.4%.

Dallas-based Capital Southwest is a publicly traded, internally-managed business development company with approximately $275 million in net assets. On September 30, 2015, Capital Southwest completed the spin-off to shareholders of its industrial businesses, CSW Industrials. Capital Southwest is a credit investment firm focused on supporting the acquisition and growth of middle market businesses with $5 to $20 million investments across the capital structure, including first lien, unitranche, second lien and subordinated debt, as well as non-control equity co-investments.