Alcentra restates facility for reduced revolver, extended maturity

By Marisa Wong

Morgantown, W.Va., Sept. 24 – Alcentra Capital Corp. entered into an amended and restated senior secured revolving credit agreement on Friday for reduced revolving commitments and an extended maturity date, according to an 8-K filing with the Securities and Exchange Commission.

ING Capital LLC is the administrative agent, arranger and bookrunner.

The credit agreement amends, restates and replaces the company’s senior secured revolving credit agreement dated May 8, 2014 with ING Capital as administrative agent, arranger and bookrunner.

Under the amended agreement, revolving commitments were reduced to $115 million from $135 million, with an accordion feature that allows for an increase in total commitments up to $180 million.

The maturity date of the credit facility was extended to Sept. 21, 2022, and the revolving period was extended to Sept. 21, 2021.

Borrowings bear interest at Libor plus 250 basis points if the contribution to the borrowing base of eligible portfolio investments that are long-term U.S. government securities and first-lien bank loans is greater than or equal to 70% or Libor plus 275 bps if that contribution is less than 70%.

In addition, the credit agreement requires payment of a commitment fee ranging from 50 bps to 100 bps based on the size of the unused portion of the facility.

The restated credit agreement also modifies some covenants in the credit facility, including to provide for a minimum asset coverage ratio of 2 to 1; a minimum interest coverage ratio of 2 to 1 as of the last day of any fiscal quarter; and a requirement to maintain stockholder’s equity as of the last day of any fiscal quarter to be no less than the greater of (i) 45% of the total assets of the company and its subsidiaries as at the last day of such fiscal quarter and (ii) the sum of $120 million plus 65% of the total net proceeds of all sales of equity interests by the company and its subsidiaries after the closing date of the amended credit agreement.

Alcentra is a closed-end management investment company based in New York.

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