The reinvestment period for the notes ends in September 2020, with a scheduled maturity in September 2027. The company will indirectly retain the subordinated notes in the amount of $108 million.
The proceeds of the private placement of the notes, net of expenses, will be used to refinance the company’s existing collateralized loan obligation and will result in a reduction in the company’s regulatory leverage ratio while only modestly increasing the weighted average weighted average cost of funds.
Brian Chase, the company’s chief financial officer, said “We are very pleased with the pricing and the terms of the refinancing of our CLO, which was structured and placed by Natixis, our longstanding financing partner. This new facility will provide us with long-dated, flexible and stable funding for our future investment activities.”
New York-based Garrison Capital is a business development company that primarily invests in loans to U.S. based middle-market companies. The company’s investment activities are managed by its investment adviser, Garrison Capital Advisers, an affiliate of Garrison Investment Group.