Golub Capital subsidiary Golub Capital BDC Funding II entered into a loan and servicing agreement in the aggregate principal amount of up to $200 million. Morgan Stanley Senior Funding acted as administrative agent on the facility, while Wells Fargo served as collateral agent, account bank and collateral custodian.
According to the related 8-K filing, the facility will mature on February 1, 2024 unless there is an earlier termination or event of default.
During the revolving period, borrowings under the facility and, after any ramp-up period, any undrawn amount under the facility in excess of 35% of the maximum principal amount of the facility will bear interest at the applicable base rate plus 2.05%.
Following expiration of the revolving period, the interest rate on outstanding borrowings will reset to the applicable base rate plus 2.55% for the remaining term of the facility. The base rate under facility will be the one-month London Interbank Offered Rate with respect to any advances denominated in U.S. dollars or U.K. pound sterling, the one-month Euro Interbank Offered Rate for any advances in euros and the one-month Canadian Dollar Offered Rate for any advances in Canadian dollars.
In connection with the facility, Golub Capital agreed to sell and transfer to Funding II certain loans and debt securities the company originated or acquired, or will originate or acquire, from time to time consistent with the Company’s investment objectives. Proceeds from the facility will be used to finance the origination and acquisition of eligible assets by Funding II, including the purchase of such assets from Golub.
Concurrent with the signing of the new agreement, Golub paid in full and terminated its previous facility with BDC Funding and administrative agent Wells Fargo. The old facility would have otherwise matured on September 21, 2023.
Founded in 1994, Golub Capital is a private debt platform with over $30 billion of capital under management. Golub Capital’s Middle Market Lending business seeks to deliver reliable, creative and compelling financing solutions to U.S. middle market companies backed by private equity sponsors.
