Daily News: May 11, 2012

THL Credit Increases Revolver, Raises $50MM Term Loan With ING


THL Credit, Inc. announced an increase and extension of its syndicated revolving credit facility led by ING Capital LLC from $125 million to $140 million. The revolver’s availability period was extended from March 2013 to May 2015, followed by a one-year amortization period with a final maturity in May 2016. The pricing on the revolver was reduced to LIBOR plus 3.25% when the facility is more than 35% drawn. Otherwise, the interest rate remains at LIBOR plus 3.50%, with no floor.

Additionally, THL Credit raised a $50 million, five-year term loan financing in a separate syndicated facility also led by ING Capital. The term loan has a bullet maturity in May 2017 and bears interest at LIBOR plus 4.00%, with no floor. Simultaneously, using an interest rate swap, the company converted the variable rate pricing on the Term Loan to an effective all-in fixed rate of 5.14%.

The revolver and term loan each include an accordion feature permitting subsequent increases to either facility up to an aggregate maximum of $225 million.

“We value the strong relationships with our existing lenders and appreciate their continued support. We are also pleased to welcome our two new lenders that have joined our revolver and term loan syndicates. The new Term Loan as well as the increase and extension of our revolver significantly expand our investment capacity to support our growth, optimize our cost of capital and extend the maturity of our liabilities,” noted James K. Hunt, chief executive officer of THL Credit.

THL Credit is an externally managed, non-diversified closed-end management investment company that invests in privately negotiated debt and equity securities of middle-market companies.