Solar Capital amends $530 million loan to cut asset coverage covenant

By Susanna Moon

Chicago, Nov. 27 – Solar Capital Ltd. said it amended its $530 million senior secured credit facility to reduce the asset coverage covenant to 150% from 200% and to make related changes to the borrowing base calculations.

The company amended the facility to allow it to use the flexibility and incremental leverage provided by the Small Business Credit Availability Act, according to an announcement.

“With this amendment, we have access to the incremental leverage allowed via the reduced asset coverage ratio, which Solar Capital’s board of directors and shareholders have previously authorized,” Michael Gross, chief executive officer and chairman of Solar, said in the press release.

“The reduction of our asset coverage requirement provides increased flexibility to expand our cash flow and asset-based loan portfolio.”

Pricing and other significant terms remain unchanged, the company noted.

Solar Capital is a closed-end, externally managed, non-diversified management investment company.

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