American Capital has completed a refinancing of its recourse debt with a new $600 million term loan and has obtained a new $250 million revolving credit facility. J.P. Morgan Chase is the administrative agent and collateral agent for both facilities. “We are extremely pleased to announce our new term debt financing and revolving credit facility,” said Malon Wilkus, Chairman and CEO. “We enjoyed strong demand and received the support of an excellent roster of debt investors. These facilities increase our capital availability and lower our interest cost, which will enhance our ability to make attractive new investments.”
J.P. Morgan Securities, BMO Capital Markets and UBS Securities were joint lead arrangers and joint bookrunners on the $600 million term loan. Citibank, Credit Suisse Securities and Goldman Sachs Bank USA also served as managing agents. In addition to repaying the existing recourse debt, the proceeds will be used for working capital and general corporate purposes. The term loan facility is priced at LIBOR plus 4.25%, with a LIBOR floor of 1.25%, and has a first lien on certain non-securitized assets of the company and a second lien on most of its remaining non-securitized assets.
J.P. Morgan Securities, BMO Capital Markets and UBS Securities were joint lead arrangers and joint bookrunners on the new $250 million revolver. Citibank, Credit Suisse Securities, Bank of America, and Goldman Sachs Bank USA served as managing agents. Draws on the revolving credit facility will be used for working capital and general corporate purposes. The revolving credit facility has a three year revolving period and may be expanded through additional commitments up to $375 million. The revolving credit facility is priced at LIBOR plus 3.75%, and has a first lien on certain non-securitized loan assets of the company and a second lien on most of its remaining non-securitized assets.
American Capital is a publicly traded private equity firm and global asset manager that originates, underwrites and manages investments of $10 million to $500 million in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $100 billion in total assets under management and has seven offices in the US, Europe and Asia (www.AmericanCapital.com).
