SunTrust Agents PennantPark Facility Increase
PennantPark Investment announced it entered into an amended and restated, multi-currency, senior secured revolver with certain lenders that increased the size of the credit facility from $445 million to $545 million and reduced the cost to LIBOR plus 225, from LIBOR plus 275.
SunTrust Bank acted as administrative agent for each of the lenders. SunTrust Robinson Humphrey and J.P. Morgan Securities acted as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank acted as syndication agent.
The facility contains an accordion feature whereby it can be expanded to $700 million if certain conditions are satisfied.
Pricing is set at LIBOR plus 225 basis points with a 37.5 basis point unused commitment fee. The facility has a five-year maturity, with a one-year term out period following its fourth year. It has the same security as a previous credit facility and includes customary covenants, including minimum asset coverage and minimum equity.
“We are pleased to have amended and restated our credit facility to this new size, duration and pricing. This long-term credit facility continues to nicely complement our permanent equity base and our long-term SBA and notes financings. We are delighted to have received strong support from existing lenders and welcome new relationships who have joined our growing list of lending partners,” said Chairman and CEO Arthur H. Penn.
PennantPark Investment is a business development company which principally invests in U.S. middle market private companies in the form of senior secured loans, mezzanine debt and equity investments.