Sierra Income Corporation, the non-traded BDC managed by Medley Management, has extended its senior secured revolving credit facility by $20 million.
The $150 million revolver was arranged by ING Capital before an additional undisclosed lender joined the group and committed the $20 million, Sierra said in a statement earlier this week. The credit facility now totals $170 million though an accordion feature allows Sierra to increase the loan up to a maximum of $500 million.
“We intend to utilize the additional lending commitment to continue to grow our investment portfolio and we look forward to working with the lender group as we expand our business in the years ahead,” said Seth Taube, chief executive of Sierra, in a statement.
Earlier this month, Sierra announced that it had completed an amendment to a revolver held by its financing subsidiary, Alpine Funding. The amended facility allowed Alpine to increase its leverage capacity from $150 million to $300 million.
Sierra is a non-traded business development company that invests primarily in first lien senior secured debt, second lien secured debt and, to a lesser extent, subordinated debt of mid-market companies in a broad range of industries. It targets borrowers with annual revenue ranging from $50 million to $1 billion.
Sierra’s investment activities are managed by Medley Management, an asset management firm that handles closed-end private debt funds and two BDCs, the private Sierra and the publicly-traded Medley Capital Corporation. Medley Management went public in September, opening at $17 per share. Its stock price has declined since to about $10 per share at close of trading on 17 February.
Medley has about $3.6 billion of capital under management. The firm has offices in New York and San Francisco.