Fifth Street Senior Floating Rate gets $100 million revolver due 2021

By Angela McDaniels

Tacoma, Wash., Nov. 7 - Fifth Street Senior Floating Rate Corp. subsidiary FS Senior Funding LLC closed on a $100 million revolver credit facility (//DBRS: AA) on Nov. 1, according to an 8-K filing with the Securities and Exchange Commission.

Natixis, New York Branch is the administrative agent and U.S. Bank NA is the collateral agent and custodian.

Pricing on the new facility is set at the applicable commercial paper rate plus 190 basis points. The interest rate would remain the same for any additional future commitments from Natixis that are funded through its commercial paper conduit.

To the extent new lenders participate in the facility or Natixis funds incremental commitments outside of its commercial paper conduit, pricing on those commitments would be Libor plus 200 bps.

The commitment fee is 50 bps for the first six months and then 100 bps.

The facility has an 18-month reinvestment period and a final maturity date of Nov. 1, 2021.

FS Senior Funding will use the revolver to fund a portion of its loan origination activities with respect to primarily senior secured loans and for general corporate purposes.

The facility provides the company with "flexible and low-cost capital to fund its growing pipeline and increase leverage towards its target of 0.85x debt-to-equity," Fifth Street president Bernard Berman said in a company news release.

Fifth Street is a specialty finance company that provides financing solutions in the form of floating-rate senior secured loans to small and mid-sized companies, primarily in connection with investments by private equity sponsors. It is based in White Plains, N.Y.

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