Medley Capital Corporation (MCC) has amended existing credit lines totaling over $1.1 billion with Dutch lender ING Capital, the firm said in a statement this week. MCC extended the maturity and reduced the pricing on both its term loan and revolving credit facilities.
The interest on the term loan facility was reduced by 25bps from LIBOR plus 3.25 percent to LIBOR plus 3 percent with no floor. The revolver will continue to carry a margin of LIBOR plus 2.75 percent. The new agreement links the margin on both facilities to MCC’s credit rating. The margins will decrease by an additional 25bps if MCC is upgraded to investment grade by Standard & Poor's.
In addition, the term loan facility's maturity was extended to July 2020 from June 2019, while the maturity date on the revolver was pushed from June 2017, to July 2020. The revolver’s tenor includes a 12 month amortization period from July 2019. The size of the revolver and term loan remains the same: at a total of $517.5 million, which can be stretched to $600 million with an accordion feature.
Medley Capital is a closed-end, externally managed business development company (BDC) that trades on the New York Stock Exchange. The BDC’s portfolio primarily consists of senior secured first lien and second lien loans.
Medley Capital, which has about $1.2 billion in assets, is externally managed by MCC Advisors, a subsidiary of Medley Management, which houses this BDC, the private Sierra Income Corporation BDC and private closed-end funds. The firm, which has offices in New York and San Francisco, has about $3.9 billion in total assets under management.