SWK intends to use the credit facility to leverage its existing portfolio and deploy additional capital for new opportunities. The credit facility has a three-year term. Amounts borrowed will bear interest at one month LIBOR + 3.25%, with a LIBOR floor of 1.00%. SWK can request to increase the facility amount up to $35 million, subject to AloStar’s approval.
“We are very pleased to close a new $20 million revolving loan facility with AloStar. AloStar’s commitment to SWK demonstrates the attractiveness of our investment strategy and current portfolio,” said Winston Black, SWK’s CEO. “The new facility will allow us to continue to take advantage of attractive opportunities in our transaction pipeline. By strategically increasing our access to capital, we have enhanced our ability to grow our finance receivables portfolio.”
SWK Holdings is a specialized finance company with a focus on the global healthcare sector.