Solar Capital Ltd. announced that it has entered into a new four-year $485 million senior secured credit facility. Citibank acted as administrative agent, JPMorgan Chase Bank acted as syndication agent and SunTrust Bank acted as documentation agent.

The facility is comprised of $450 million of revolving credit, which represents a $45 million increase over the prior revolving facility, and a $35 million term loan. The applicable margin on the facility is 250 basis points over LIBOR, a 75 basis point reduction from the prior facilities. Consistent with the prior facilities, the facility has no LIBOR floor requirement. The facility matures in July 2016 and includes a ratable amortization in the fourth year.

The facility contains an accordion feature whereby it can be expanded to $800 million. The facility includes customary covenants, including minimum asset coverage and minimum equity requirements, as well as customary events of default.

With the inclusion of the $485 million facility, Solar Capital’s total borrowing capacity totals $660 million.

“This new facility enhances our capital structure by increasing total borrowing capacity; significantly extending our average debt maturity; and lowering our average cost of capital,” commented Michael Gross, chairman and CEO of Solar Capital Ltd. “We greatly appreciate the support Solar Capital has received from our lenders.”

Solar Capital Ltd. is a closed-end investment company that has an investment objective to generate both current income and capital appreciation primarily through senior secured loans, mezzanine loans and equity investments in leveraged, middle-market companies.