Flow Capital Enters $15MM Credit Facility with TBK Bank

Flow Capital, a provider of growth venture debt in the form of senior secured loans to high-growth companies, has entered into a loan agreement with TBK Bank (Triumph) for a revolving committed credit facility in the principal amount of up to $15 million._x000D_
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Flow Capital intends to use the credit facility to finance additional investments and for general operating and corporate purposes._x000D_
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“Partnering with Triumph marks a significant milestone for Flow Capital. We are thrilled that Triumph has the confidence in our track record, processes, team and overall strategy to partner with us,” Alex Baluta, CEO of Flow Capital, said. “As we announced this past June 12, the 6-year portfolio-level IRR generated from our senior secured loan portfolio of growth venture debt loans stands at over 26%. As we consider our long-term optimal capital structure, this credit line will be a small but important component of our capital stack. This warehouse-type credit facility will help us maintain our steady pace of deployment, while our priority remains raising funds through our redeemable floating rate debentures, which will continue to be our primary funding source.”_x000D_
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“We are proud of the success of our portfolio companies over the past six years,” Baluta said. “By focusing on senior secured loans to high-growth companies, we have generated meaningful value for our shareholders while also providing a compelling return and income stream for our debenture holders, who are currently earning a yield between 10% and 11.83% (depending on unit currency and class).”_x000D_
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The Triumph credit facility has a term of 36 months, with monthly interest payments to be made on the outstanding balance of the loan, calculated monthly in arrears, based on SOFR plus a commercially reasonable credit spread. The loan is secured against all present and after-acquired property of the company. The loan agreement contains standard financial and negative covenants typical for a revolving credit facility._x000D_
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In consideration of the amounts made available to the company under the loan, the company will pay a finder’s fee commission to TerraNova Capital Equities.