THL Credit cuts costs on ING credit line

The price on the term loan facility has been reduced by 50bps, while the maturity was extended by two years.

THL Credit, a direct lender to middle-market companies, has amended the terms on its revolving credit and term loan facilities led by ING Capital. The term loan facility's bullet maturity was extended from April 2019 to August 2021. The pricing was reduced to LIBOR plus 2.75 percent from LIBOR plus 3.25 percent. There is no LIBOR floor. The term loan facility is valued at $106.5 million

In addition, the revolving facility's availability period was extended from May 2017 to August 2019, followed by a one-year amortization period with a final maturity in August 2020. The pricing on the revolving facility will remain the same: at LIBOR plus 2.5 percent, with no floor. The revolving credit facility amounts to $303.5 million. 

Both facilities include an accordion feature that allows for increases to either one up to an aggregate maximum amount of $600 million.  

THL Credit is an externally-managed, non-diversified closed-end investment company that is regulated as a BDC. The vehicle has about $792 million in assets. 

The broader THL Credit platform has $5 billion in assets under management across direct lending and tradable credit. The firm is headquartered in Boston, with additional investment teams in Chicago, Houston, Los Angeles and New York.  The firm is a direct lender to lower mid-market companies and invests primarily in directly originated first lien and second lien secured loans, including unitranche transactions. Occasionally, THL Credit also makes subordinated debt investments, which may include an associated equity component such as warrants, preferred stock, other similar securities and direct equity co-investments.   

THL Credit targets investments in companies with annual EBITDA generally between $5 million and $25 million that require capital for growth and acquisitions.