FS Investment increases maximum size of debt financing arrangement

By Lisa Kerner

Charlotte, N.C., Feb. 21 - FS Investment Corp. amended its debt financing arrangement with JPMorgan Chase Bank, NA, London Branch on Feb. 15 to increase the amount of debt financing available under the arrangement to $400 million from $300 million, according to a form 8-K filing with the Securities and Exchange Commission.

FS Investment wholly owned special-purpose bankruptcy-remote subsidiary Race Street Funding LLC may now sell up to $560 million of class A notes under the agreement instead of $420 million.

Interest on the Locus Street notes is at Libor plus 400 basis points.

JPMorgan agreed to purchase class A notes held by Race Street for about 71% of par. As a result, the maximum amount payable at any time by JPMorgan to Race Street increased to $400 million from $300 million.

Also, FS Investment's other special-purpose bankruptcy-remote subsidiary, Locust Street Funding LLC, increased the total principal amount of class A floating notes to be issued by Locust Street to Race Street to $560 million from $420 million.

FS Investment is a Philadelphia-based business development company that invests in the debt securities of private companies.

© 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.