Fifth Street upsizes facility due 2021 to $200 million with Natixis

By Susanna Moon

Chicago, Oct. 20 – Fifth Street Senior Floating Rate Corp. said it upsized its credit facility with Natixis, New York Branch to $200 million.

The facility consists of a $100 million term loan and a $100 million revolving credit facility.

The expansion will occur in two stages, according to a company press release. The revised facility initially closed Oct. 16, with the existing $100 million revolver converting into a $50 million term loan and a $50 million revolver.

On Oct. 30, the total facility will increase to $200 million and will consist of a $100 million term loan and a $100 million revolver, both due Nov. 1, 2021.

Through the syndication, Fifth Third Bank joined the facility as a term loan lender.

The $50 million term loan provided by Fifth Third priced at Libor plus 200 basis points, and the $100 million revolver and $50 million term loan provided by Natixis priced at the commercial paper rate plus 190 bps.

DBRS, Inc. rates the facility AA.

“The expanded funding capacity will allow FSFR to continue leveraging the Fifth Street origination platform to provide custom-tailored senior secured financing solutions to support the needs of our private equity partners,” Ivelin M. Dimitrov, chief executive officer, said in the press release.

“The syndicated facility provides us with flexible and low-cost leverage as we pursue a 0.80x to 0.90x targeted debt-to-equity ratio at FSFR in a timely manner following our recent equity raise.”

White Plains, N.Y.-based Fifth Street Management LLC is the manager.

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