Fifth Street Finance amends and extends $230 million facility via ING

By Susanna Moon

Chicago, March 2 - Fifth Street Finance Corp. said it amended the terms of its $230 million syndicated credit facility led by ING Capital LLC, pushing out the maturity to Feb. 29, 2016.

The facility's accordion feature now allows for expanding the total size to $450 million if conditions are met, according to a company press release.

The amended terms allow for a four-year maturity, extending the maturity of the previous three-year facility from Feb. 22, 2014. The facility has a one-year term-out period beginning on Feb. 27, 2015.

Pricing remains at Libor plus 300 basis points, with no floor, when the facility is drawn more than 35%. Otherwise, the rate is Libor plus 325 bps, with no Libor floor.

"We are pleased to have amended our ING-led credit facility at this new duration and to allow for future expansion. This commitment allows us to continue to lever our existing portfolio, including our second-lien investments, and to support our private equity sponsor relationships in the middle market," Fifth Street's president Bernard D. Berman said in the release.

"Together with our Wells Fargo and Sumitomo Mitsui credit facilities, and the leverage our SBIC subsidiary provides, we believe Fifth Street has one of the most diversified and flexible financing platforms in our industry."

Fifth Street Finance is a White Plain, N.Y.-based specialty finance company that lends to and invests in small and mid-sized companies.

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