StoneCastle Financial, a closed-end investment company registered with the Securities and Exchange Commission, amended its credit facility with Texas Capital Bank, the sole lender.
Changes to the facility include:
- Decreasing cost to a significantly lower credit spread of LIBOR+2.35%, down from Libor +2.85%. We believe this is due to the Company’s strong credit quality and asset performance over the past three years.
- The maturity date has been extended for a full five years to May 16, 2022.
- The size has been adjusted from $70 million to $62 million, reflecting the maximum amount the company can borrow based on current assets and internal guidelines. This reduces the 0.50% annual fee paid to the bank on undrawn amounts of the facility.
- In the prior facility, the company was required to maintain a deposit account of $3.5 million of cash with the lead lender. Such funds were previously unavailable for investment into earning securities. The $3.5 million account is no longer required, allowing the company to earn a return on this cash going forward.