Virtus Investment $150 million revolver interest Libor plus 175-225 bps

By Wendy Van Sickle

Columbus, Ohio, Oct. 6 – Virtus Investment Partners, Inc.’s new $150 million five-year revolving credit facility bears interest at Libor plus a margin ranging from 175 basis points to 225 bps, depending on leverage ratio, according to details from an 8-K filing with the Securities and Exchange Commission.

The commitment fee ranges from 30 bps to 40 bps, also based on leverage.

As previously reported, Virtus entered the credit agreement last Friday, replacing its $75 million secured credit agreement that was set to mature in September 2017.

The credit agreement has a $7.5 million sublimit for standby letters of credit and a $10 million sublimit for swingline loans.

Virtus may increase the new unsecured facility by up to $50 million with lender approval.

The credit facility was arranged by joint lead arrangers BNY Mellon, which is also administrative agent, and PNC Bank, NA, which is also syndication agent.

Financial covenants include a maximum leverage ratio of 3 times and a minimum interest coverage ratio of 4 times.

The revolver matures on Sept. 30, 2021.

The credit agreement replaced an agreement with the Bank of New York Mellon, PNC Bank, NA, Royal Bank of Canada, and Citibank, NA that was entered in September 2009.

As of Friday, Virtus had no borrowings outstanding under the credit agreement and no other debt outstanding.

The investment manager is based in Hartford, Conn.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.