Mount Logan Capital’s wholly-owned subsidiary, MLC US Holdings, entered into a credit agreement, as borrower, with a U.S.-based asset manager as administrative agent and collateral agent for the lenders in respect of a term loan for an initial amount of up to $25 million.

Pursuant to the credit agreement, MLC US Holdings is entitled to borrow up to $25 million, of which $16.5 million was drawn down as of the closing date. The undrawn portion of the credit facility will expire on Dec. 31 and the outstanding principal amount and accrued but unpaid interest in respect of the credit facility will become payable on Aug. 20, 2027, subject to certain adjustments pursuant to the credit agreement.

The intended use of the initially drawn proceeds on the credit facility is to refinance the existing credit facility at MLCSC Holdings Finance, to repay debt drawn in connection with funding a transaction with Capitala Investment Advisors, pursuant to which Mount Logan Management became the investment adviser of Capitala Finance (now Logan Ridge Finance), and to pay fees and expenses related to the credit facility. The remaining amount of the credit facility is expected to partially fund the company’s proposed $10 million investment to support the growth of Ability Insurance Company alongside the proposed acquisition of Ability in Q4/21.

“We are very pleased with the closing of this credit facility, which represents Mount Logan’s first long-term corporate credit facility,” Ted Goldthorpe, CEO and chairman of Mount Logan Capital, said. “We have a strong relationship with the lenders who are aligned to support our future growth.”

As collateral security for its obligations under the credit agreement, MLC US Holdings has granted in favor of the lenders a security interest in all of the assets of MLC US Holdings. In addition, the company has guaranteed the obligations of MLC US Holdings under the credit agreement in favor of the lenders.