M&T Bank provided a $25 million senior secured revolving credit facility to Rand Capital, a business development company providing alternative financing for lower middle-market companies, which will use the funds for future portfolio investments.
“The new facility adds another source of capital to support our strategy, which is focused on continued portfolio expansion into income-producing assets to drive investment income and future dividend growth,” Daniel P. Penberthy, president and CEO of Rand Capital, said. “In addition to the increased liquidity, this facility provides greater flexibility and an increased funding commitment than our previous credit arrangement with the SBA, which was repaid in full during the fourth quarter of 2021.”
The new senior secured credit facility provides for a five-year term through 2027 at an interest rate calculated using SOFR plus 3.5%.
