HarbourVest Global extends multi-currency facility with Lloyds to 2018

By Susanna Moon

Chicago, April 25 - HarbourVest Global Private Equity Ltd. said it extended its $500 million multi-currency credit facility with LloydsTSB Bank plc until April 2018.

HVPE said it refinanced the facility, with the amount unchanged at $500 million until December 2014 and then reduced to $300 million after that.

Interest on the loans scales up from Libor plus 210 basis points in 2013 to Libor plus 290 bps in 2015 and beyond for borrowings of less than $100 million, according to a company press release.

In addition, another 50 bps will be payable on the total sum drawn if borrowings exceed $100 million, together with another 25 bps on the total sum drawn if borrowings are more than $200 million.

The facility contains similar covenants to those of the existing facility, which was set to expire in December 2014.

As of March 31, total borrowing under the facility was $136.5 million.

The facility extension "underpins the company's commitment to growing its NAV over the long term for the benefit of shareholders," Stuart Howard, chief operating officer of European listed products at HarbourVest, said in the press release.

"The cash generative trending portfolio, and our proven ability to manage the balance sheet during challenging economic conditions, means we are comfortable with the step down to a $300 million facility beyond 2014. A strong balance sheet allows the company the option to invest in new private equity opportunities in and alongside HarbourVest-managed funds and to maximise its future returns. The modest increase in fees and margin is a positive exchange for certainty and duration."

Chairman of the board Michael Bunbury said that the "renewal and extension of the credit facility is key to the company's ongoing ability to access borrowings opportunistically to finance cash generative, mature investments."

The closed end investment company is based in St. Peter Port, Guernsey.

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