Great Elm Capital, a business development company, entered into an amendment to its revolving credit facility with City National Bank (CNB) to, among other things, increase the borrowing capacity under the revolving credit facility from $25 million to $50 million. The amendment allows the company, under certain circumstances, to increase the overall borrowing capacity to a maximum of $90 million. In addition, the amendment reduces the interest rate on the revolving credit facility to the applicable secured overnight financing rate (SOFR) plus 2.50% from SOFR plus 3.00%.
“We are very pleased to announce this amendment to our revolving credit facility with CNB,” Matt Kaplan, CEO of Great Elm, said. “The increased borrowing capacity is a testament to our growing capital base and strong operational performance since partnering with CNB on the initial $25 million commitment in 2021. The amended facility not only reduces our borrowing costs, but it also enhances our flexibility to fund attractive opportunities with compelling, risk-adjusted returns. Additionally, we believe shifting our liability mix to more floating rate debt is a prudent step in the current interest rate environment.”
