MicroFinancial unit restates credit facility for $200 million revolver

By Marisa Wong

Madison, Wis., Jan. 23 – MicroFinancial Inc.’s direct wholly owned subsidiary, TimePayment Corp., entered into a third amended and restated credit agreement with Santander Bank, NA as agent for a $200 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The new revolving credit facility refinances and replaces TimePayment’s existing $150 million revolving credit facility with Santander.

MF2 Holdings LLC, an indirect wholly owned subsidiary of MF Parent LP, is also a borrower under the amended revolver. MicroFinancial entered into a merger agreement with MF Parent in December.

The maximum principal amount of loans outstanding under the restated revolver at any time is subject to a borrowing base based on, among other items, collateral value attributed to eligible receivables.

Availability will be reduced by $43 million as long as any borrowings under a bridge loan facility entered into between MF Merger Sub Corp. as borrower and Santander as lender remain outstanding. MF Merger Sub is a wholly owned subsidiary of MF Parent LP.

As of Jan. 22, the conditions precedent for borrowings under the revolver and the bridge loan have been met, the filing stated.

The revolver is available to refinance the bridge loan, pay related fees and expenses incurred in connection with the merger and provide ongoing working capital and other funding needs for the borrowers.

The amendment was completed on Dec. 13.

Burlington, Mass.-based MicroFinancial is a financial intermediary specializing in microticket leasing and financing. MF Parent is an affiliate of funds managed by an affiliate of Fortress Investment Group LLC.

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