Sovereign Increases MicroFinancial Credit Agreement
MicroFinancial announced that its operating subsidiary, TimePayment Corp., increased its revolving line of credit from $100 million to $150 million with a six member bank syndicate led by Sovereign Bank, a subsidiary of Santander Holdings USA and Banco Santander.
The credit agreement allows the company to borrow up to $150 million against eligible lease receivables subject to a borrowing base calculation. The interest rate under the amended agreement continues to provide for either a prime rate based or a LIBOR rate based borrowing at the Company’s option and the maturity date of the amended facility was extended to December 21, 2016.
Richard Latour, president and CEO said, “Our ability to increase our line of credit in this challenging economic environment demonstrates a continued confidence in our company. We are pleased to have increased our credit facility which, when combined with our strong cash flow from operations, will allow us to continue to provide our customers with the financial services they need to grow their business.”
MicroFinancial is a financial intermediary specializing in microticket leasing and financing.
Santander Holdings USA is a wholly owned subsidiary of Banco Santander and parent company of Sovereign Bank. Banco Santander is a retail and commercial global bank.