Pacholder High Yield Fund entered into a new $50 million credit facility with Pershing as lender.

The credit facility provides for borrowings in an aggregate principal amount of up to $50 million and allows the fund to borrow, repay and re-borrow amounts from time to time, with each borrowing terminable upon 180 days’ notice by the fund or Pershing. In order to secure the loans available under the credit facility, the fund will pledge a portfolio of U.S. corporate investment grade and high-yield bonds as collateral.

Loans made under the credit facility will accrue interest at a rate equal to the one-month LIBOR offered rate plus 75 basis points. In addition, the fund will be subject to a minimum balance fee equal to the one-month LIBOR offered rate plus 60 basis points if the amount outstanding under the credit facility is less than 80% of the maximum amount permitted to be borrowed under the credit facility. The minimum balance fee will be applied to the difference between 80% of the maximum amount permitted to be borrowed under the credit facility and the amount outstanding.