Business Development gets $400 million revolver at Libor plus 170 bps

By Marisa Wong

Madison, Wis., July 2 – Business Development Corp. of America entered into a revolving credit facility on June 27 with Citibank, NA as administrative agent and U.S. Bank NA as collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility provides for borrowings over a 24-month period in a total principal amount of up to $400 million on a committed basis.

The facility will be priced at Libor, with no Libor floor, plus a spread of 170 basis points for the first 24 months and 200 bps after that.

Any amounts borrowed under the facility will mature in three years.

Borrowings are subject to compliance with a borrowing base.

In the event that any part of the available commitment is reduced within the first two years, an additional amount is payable to Citibank equal to 0.5% of the amount by which the commitment is reduced.

The New York company was established to provide capital primarily in the form of senior secured loans to middle-market enterprises. It invests in both the debt and equity of private middle-market companies.

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