Fifth Street increases credit facility due 2018 to $670 million

By Toni Weeks

San Luis Obispo, Calif., May 6 - Fifth Street Finance Corp. announced that it increased its syndicated bank credit facility by $20 million to $670 million.

The facility, which still matures Aug. 6, 2018, has an accordion feature that will allow for future expansion to up to $800 million.

The increase was made due to an incremental commitment from an existing lender to the syndicate as well as by adding a new lender, bringing the total number of lenders to 16.

"Our syndicated credit facility provides flexible capital to meet the financing needs of our private equity sponsor clients for transactions up to $250 million," chief executive officer Leonard M. Tannenbam said in a press release. "When combined with our two investment-grade credit ratings and ability to access the institutional unsecured bond market, our liability structure remains flexible, low cost and includes a significant amount of fixed-rate longer-term debt."

Fifth Street is a White Plains, N.Y.-based specialty finance company that originates and invests in one-stop financings and first-lien, second-lien and mezzanine debt and equity co-investments for small and mid-sized companies.

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