Solar Capital cuts interest with expanded $485 million four-year loans

By Susanna Moon

Chicago, July 2 - Solar Capital Ltd. said it closed a $485 million four-year senior secured credit facility, reducing interest to Libor plus 250 basis points.

The facility consists of a $450 million of revolving credit and a $35 million term loan and contains an accordion for a total size of up to $800 million.

The company expanded the revolver by $45 million and lowered interest by 75 bps from its previous facility, according to a press release.

The facility matures in July 2016 and there is no Libor floor. The terms include a ratable amortization in the fourth year, the release noted.

With the new facility, Solar Capital's total borrowing capacity is now $660 million.

"This new facility enhances our capital structure by increasing total borrowing capacity, significantly extending our average debt maturity and lowering our average cost of capital," Michael Gross, chairman and chief executive officer of Solar Capital, said in the release.

Citibank NA is the administrative agent; JPMorgan Chase Bank, NA is syndication agent; and SunTrust Bank is the documentation agent.

Solar Capital is a New York-based closed-end investment company.

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