ING, EverBank Increase Medley Capital Credit Facility
Medley Capital Corporation announced the issuance of $55 million in senior term debt and an amendment, extension and increase to its existing revolving credit facility. The combined term loan and credit facility increases Medley Capital’s current financing capacity by $62.5 million to $187.5 million and provides for an aggregate accordion feature permitting subsequent increases to the facilities up to an aggregate maximum amount of $300 million.
ING Capital led the financing. In addition to the continuing participation of its existing lenders, the lending group was expanded to include EverBank Commercial Finance. The credit facility was increased from $125 million to $132.5 million and the revolving period was extended from August 2014 to August 2015, followed by a one-year amortization period and a final maturity in August 2016. The pricing on the credit facility was reduced to LIBOR plus 3.75% with no floor. The credit facility also provides for a step down in pricing to LIBOR plus 3.25% if the company’s NAV exceeds $350 million. Additionally, the company issued a $55 million five-year term loan. The term loan has a bullet maturity in August 2017 and bears interest at LIBOR plus 4.00%, with no floor.
“We have worked hard to build strong relationships with our existing lenders and appreciate their continued support. We continue to work at expanding our lending group and we are very pleased with the addition of EverBank. The facilities allow us to significantly grow our investment portfolio both now and in the future as we increase our equity base. With this amendment, we were able to lower our current cost of capital and also provide a path to further lowering our cost of capital in the future,” noted Brook Taube, CEO of the company.
Medley Capital is an externally managed, non-diversified closed-end management investment company that is a direct lender targeting private debt transactions ranging in size from $10 million to $50 million to borrowers principally located in North America.