Fifth Street negotiates better loan terms via ING after ratings bump

By Susanna Moon

Chicago, July 14 - Fifth Street Finance Corp. said it amended the terms of its three-year syndicated credit facility led by ING Capital LLC, with lower pricing and increased total commitments.

Interest on the loans is now Libor plus 300 basis points, with no Libor floor, when the facility is drawn more than 35%. Otherwise, interest will be Libor plus 325 bps, with no Libor floor.

Before the amendments, interest was Libor plus 350 bps, and the new rates are contingent on Fifth Street maintaining its recently issued investment-grade rating, according to a company press release.

The company also increased its facility by $15 million to $230 million and added an accordion that could expand the total amount to $350 million.

The maturity date remains Feb. 22, 2014.

Fifth Street Finance is a White Plains, N.Y.-based specialty finance company that lends to and invests in small and mid-sized companies, primarily in connection with investments by private equity sponsors.

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