Gladstone Capital amended and extended its syndicated credit facility, with KeyBank acting as administrative agent, managing agent and lead arranger on the transaction.

The amendment, among other things, included the following:

• An extension of the revolving period from January 19, 2019 to January 15, 2021
• An extension of the maturity date from May 1, 2020 to April 15, 2022, at which time all principal and interest will be due and payable
• A reduction in the interest rate margin by 40 basis points effective immediately to 2.85% for the balance of the revolving period, after which the margin increases to 3.25% for the balance of the facility term
• A change in the unused commitment fee from 0.50% of the total unused commitment amount to 0.50% when the average unused commitment amount for the reporting period is less than or equal to 50%, 0.75% when the average unused commitment amount for the reporting period is greater than 50% but less than or equal to 65%, and 1.00% when the average unused commitment amount for the reporting period is greater than 65%
• An increase in the current commitment amount from $170 million to $190 million with the ability to expand to a total facility amount of $265 million through additional commitments of existing lenders

“We would like to thank KeyBank and the participating banks, the majority of which increased their commitments, for their continued confidence and support of Gladstone Capital in closing on this amendment,” said Bob Marcotte, Gladstone president. “The combination of the increased capacity, maturity extension and pricing improvements in this amendment are expected to provide both an immediate benefit to our current net interest income as well as support the long-term growth of our investment portfolio.”