FirstCity gets $25 million subordinated credit facility

By Sara Rosenberg

New York, Sept. 10 - FirstCity Financial Corp. closed on a $25 million subordinated delayed-draw credit facility due Nov. 12, 2010, according to an 8-K filed with the Securities and Exchange Commission Monday.

Bank of Scotland is the agent on the deal.

The loan is priced at Libor plus 500 basis points.

There is a 25 bps unused fee.

Proceeds will be used to finance equity investments in new ventures, the senior debt and equity portion of portfolio and asset purchases, to provide for the issuance of letters of credit and for working capital loans.

Financial covenants include minimum EBITDA to interest coverage of 1.50 to 1.00 for each 12-month period, maximum debt to tangible net worth of 3.5 to 1.00 for the last day of each fiscal quarter, and minimum cumulative current recovered and projected collections to cumulative original projected collections of 0.90 to 1.00 for each fiscal quarter.

The facility, which closed on Sept. 5, is to be effective as of Oct. 2, provided that certain conditions are satisfied.

FirstCity is a Waco, Texas-based financial services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.