Fifth Street Holdings entered into a $100 million amended and restated credit agreement with Sumitomo Mitsui Banking as administrative agent and Cortland Capital Market Services as collateral agent.

The financing consists of a term loan facility that matures on August 1, 2019 or when amounts owing under the credit facility otherwise become due and payable.

According to a related 8-K filing, Morgan Stanley Senior Funding served alongside Sumitomo Mitsui Banking as joint lead arranger and joint bookrunner, and also served as syndication agent for the existing credit agreement.

The agreement provides for monthly amortization of amounts owing under the facility beginning on January 1, 2018 at a rate of 5.0% of the aggregate amount outstanding as of January 1, 2018, subject to certain reductions.

Until January 1, 2018, borrowings under the credit facility bear interest at a variable rate based on either LIBOR or a base rate plus an applicable margin, which is subject to change based on a total leverage ratio.

As of the date hereof, borrowings accrue interest at an annual rate of either LIBOR plus 3.0% or a base rate plus 2.0%. After January 1, 2018, borrowings will bear interest at an annual rate of either LIBOR + 5.0% or a base rate plus 4.0%. The facility is secured by substantially all of the assets of Fifth Street Holdings and certain subsidiaries.

The financing was announced shortly after Fifth Street Holdings entered into a purchase agreement with New Star Financial, where NewStar acquired 100% of Fifth Street CLO Management, a wholly-owned subsidiary of Fifth Street Holdings.