NB Private Equity Partners entered into a new $200 million credit facility with Massachusetts Mutual Life Insurance, concurrent with the termination of its credit facility with JP Morgan Chase.
Key information and terms of the new credit facility:
- $200 million facility size ($250 million inclusive of $50 million accordion)
- Ten year borrowing availability period
- Interest rate of L+275 basis points (1.0% L Floor) on drawn amounts
- Minimum utilization of $60 million beginning 18 months after the closing date
- Undrawn spread of 55 basis points annually
- Facility is secured by a security interest in the cash flows from the underlying investments
Kroll Bond Rating Agency has assigned a rating of “A -” to the new credit facility and will review the credit rating annually over the life of the facility. KBRA’s analysis of the credit rating considered the portfolio of private equity assets and asset coverage relative to facility size, the manager’s track record and capabilities, diversification of underlying assets, historic performance and cash flows as well as overall liquidity and capital position.
“I am pleased to announce the completion of this new credit facility which provides NBPE with long-term financing at an attractive cost of capital. This new facility lowers NBPE’s borrowing costs and increases balance sheet security by providing NBPE the capital resources to continue to meet existing commitments as well as additional flexibility to make new investments as and when attractive opportunities arise,” said William Maltby, Chairman of NBPE.
NBPE invests in direct private equity investments alongside market leading private equity firms globally.