CM Finance extends financing facility, reduces revolving financing

By Angela McDaniels

Tacoma, Wash., June 27 – CM Finance Inc. amended its financing facility with UBS AG, London Branch on June 21 to extend its term financing facility and revolving financing facility, reduce the size of the revolving financing, add an option to further increase the term financing and revise the structure of the financing from a total return swap to a repurchase agreement, according to an 8-K filing with the Securities and Exchange Commission.

Under the amendment, the term financing will be divided between a class A-1 notes and class A-2 notes. On June 21, $136 million of class A-1 notes and $26,666,667 of class A-2 notes were issued, initially reducing the outstanding term financing to $162,666,667 from $200 million.

On Sept. 30, with the consent of UBS, the company can opt to purchase an additional $70,666,667 class A-2 notes on Oct. 15, expanding the term financing to $233,333,334.

If the class A-2 notes option is not exercised, the $26,666,667 class A-2 notes issued on the closing date will be redeemed in full.

The revolving financing was reduced by $60 million to an aggregate amount of $40 million of class A-R notes.

In addition, subject to the class A-2 note option described above, the term financing and the revolving financing each was amended to extend the maturity date by 12 months, respectively, to Dec. 5, 2021 (with respect to the term financing) and Dec. 7, 2020 (with respect to the revolving financing).

The externally managed, non-diversified, closed-end management investment company is based in New York.

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