Sierra Income subsidiary obtains $150 million revolver via JPMorgan

By Toni Weeks

San Luis Obispo, Calif., July 23 – Sierra Income Corp. subsidiary Alpine Funding LLC entered into a revolving credit facility on Wednesday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility provides for $150 million of borrowings on a committed basis. The agreement matures Jan. 23, 2019.

Loans under the facility bear interest at one-month Libor plus 325 basis points. Beginning Feb. 22, 2015, Alpine must pay a 0.5% non-usage fee.

Alpine’s obligations under the facility are secured by a first-priority security interest in substantially all of its assets, including its portfolio of loans. Alpine’s borrowings will be considered borrowings of Sierra for the purposes of complying with the asset coverage requirements applicable to business development companies.

New York-based Alpine Funding is a newly formed, wholly owned special-purpose financing subsidiary of Sierra Income. Its investment adviser is SIC Advisors LLC.

New York-based Sierra Income is a management investment company 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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