Key EF, BB&T, ING Arrange Amended Facility for Gladstone Capital
Gladstone Capital said that through its wholly owned subsidiary, Gladstone Business Loan, it entered into Amendment No. 3 to the fourth amended and restated credit agreement to extend the maturity date of its $137 million line of credit to January 18, 2015.
Key Equipment Finance arranged the amended credit facility as administrative agent, with Branch Banking and Trust and ING Capital also joining the amended credit facility as committed lenders.
Subject to certain terms and conditions, the amended credit facility may be expanded up to $237 million through the addition of other committed lenders to the facility. If the amended credit facility is not renewed or extended by the maturity date, all principal and interest will be due and payable on or before January 18, 2016 (one year after the maturity date).
The interest rates on advances under the amended credit facility remained unchanged at 30-day LIBOR (subject to a minimum rate of 1.5%) plus 3.75% per annum, with a commitment fee of 0.5% per annum on undrawn amounts when the amended credit facility is drawn more than 50% and 1.0% per annum on undrawn amounts when the amended credit facility is drawn less than 50%. The company incurred fees of $1.4 million in connection with this amendment. All other terms of the amended credit facility remained substantially unchanged.