MidCap Financial provided a new $56.5 million secured term loan credit facility with OHA Investment Corporation (OHAI), replacing the company’s existing facility.

OHAI used $40.5 million to pay off a $38.5 million balance on its previous investment facility, as well as to pay transaction expenses and provide balance sheet cash.

The remaining $16 million is a one-year delayed draw term loan, which OHAI will use for operating expenses and to grow its investment portfolio.

The credit facility bears an interest rate of LIBOR + 535 for Eurodollar Loans, subject to a 1% LIBOR floor and base rate plus 4.35% for base rate loans. The credit facility has a maturity date of March 9, 2018, with a six-month extension option.

Steven Wayne, president and CEO of OHAI, said, “The closing of this new credit facility is an important and positive step for OHAI as we continue to work on transitioning our portfolio away from legacy energy assets as it provides meaningful capital for us to grow and continue to diversify our investment portfolio. We are grateful to our partner, MidCap Financial, for providing us this credit facility.”

OHAI, externally managed by Oak Hill Advisors, is a specialty finance company that provides direct lending solutions to middle market private companies across industry sectors.

MidCap Financial is a middle market-focused, specialty finance firm that focuses on general and healthcare asset-based working capital loans, leveraged loans, life sciences loans, real estate loans and lender finance term loans.