Sierra Income gets three-year revolver with $50 million commitments

By Susanna Moon

Chicago, Dec. 9 - Sierra Income Corp. obtained a three-year senior secured syndicated revolving credit facility with initial commitment of $50 million and an accordion that allows for expanding the facility up to a total of $100 million.

The company entered into the credit agreement on Dec. 4 with ING Capital LLC as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Interest is initially Libor plus 350 basis points. The margin will step down to 300 bps when the first condition is satisfied and then to Libor plus 275 bps when the second condition is satisfied.

The unused fee is 50 bps for the first six months and then 100 bps if the unused part of the aggregate commitments is less than or equal to 35% of the aggregate commitments or 50 bps if the unused part of the aggregate commitments is more than 35%.

The facility matures on Dec. 4, 2017 and is secured by substantially all of the company's assets.

Proceeds will be used for general corporate purposes, including making investments in line with the company's investment objective and strategy.

Sierra Income is a non-diversified, closed-end management company based in New York that invests in the debt of privately owned U.S. companies with a focus on senior secured debt, second-lien debt and, to a lesser extent, subordinated debt.

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