Venture Lending & Leasing VIII expands revolver to $280 million

By Marisa Wong

Morgantown, W.Va., Sept. 15 – Venture Lending & Leasing VIII, Inc. amended its loan agreement dated April 5, 2016 to increase the size of the secured revolving credit facility to $280 million from $150 million, according to an 8-K filed Friday with the Securities and Exchange Commission.

The fund entered into the amendment on Sept. 11 with Wells Fargo Bank, NA, Wells Fargo Securities, LLC, MUFG Union Bank, NA, ING Capital, LLC and ZB, NA doing business as California Bank & Trust, with participation from Bank of America NA, Everbank Commercial Finance, Inc., First Bank, Bank Leumi USA, HSBC Bank USA, NA and Umpqua Bank.

The amendment also modifies interest rate options and the commitment fee.

Interest is, at the fund’s option, the reference rate plus 175 basis points, Libor plus 275 bps or the Libor market index rate plus 275 bps, provided that under certain market conditions, the aggregate amount of Libor market index rate loans outstanding at any time may not exceed $25 million.

The commitment fee is 50 bps unless the fund uses more than 50% of the maximum amount available under the facility, in which case the fee will be 25 bps.

The amended revolver has a term of three years and will expire on Sept. 11, 2020.

An additional $70 million is potentially available under an accordion provision.

The borrower is a Portola Valley, Calif.-based non-diversified, closed-end management investment company that provides debt financing to venture capital-backed companies, usually in the form of secured loans.

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