HarbourVest increases multi-currency credit facility to $600 million

By Sarah Lizee

Olympia, Wash., Jan. 4 – HarbourVest Global Private Equity Ltd. said it renewed its multi-currency credit facility with Credit Suisse AG London Branch and Mitsubishi UFJ Trust Banking Corp., New York Branch, increasing the size to $600 million from $500 million and extending the maturity.

The lenders will provide $300 million each.

The new facility is structured as a five-year evergreen with a two-year initial no-notice provision, giving a guaranteed initial term of seven years, according to a company release.

From January 2021, the lenders are able to serve notice, but this must be a minimum of five years.

HarbourVest will pay a commitment fee on the undrawn facility at a blended rate of 95 basis points, a decrease from the previous 115 bps.

The Libor margin has also been reduced to 250 bps for borrowings of less than $300 million, with an additional 40 bps payable on borrowings that exceed that amount.

The previous facility carried a margin of 275 bps for borrowings of less than $250 million with a further 30 bps payable on the entire drawn amount were borrowings to exceed $250 million.

As with the previous facility, all borrowings are subject to compliance with covenants.

The facility was undrawn as of Friday.

Mitsubishi is a new lender for HarbourVest, joining Credit Suisse, which has been co-lender to the company since 2015. Credit Suisse will act as agent.

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

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