FS Investment’s Locust Street gets $625 million term loan via JPMorgan

By Marisa Wong

Morgantown, W.Va., Nov. 2 – FS Investment Corp.’s wholly owned special-purpose financing subsidiary, Locust Street Funding LLC, entered into a term loan agreement on Tuesday with JPMorgan Chase Bank, NA as lender and administrative agent. JPMorgan advanced $625 million to Locust Street, according to an 8-K filing with the Securities and Exchange Commission.

The outstanding advances bear interest at Libor plus a spread of 268.33 basis points.

Under the loan agreement, Locust Street has agreed to prepay $200 million of the aggregate principal amount of the advances on or before Jan. 31. All outstanding advances will mature and all accrued interest will be due and payable on Nov. 1, 2020.

Advances are subject to a compliance condition, satisfied when the outstanding advances minus the amount of principal and interest proceeds in Locust Street’s accounts is less than or equal to 53% of the net asset value of Locust Street’s portfolio of assets.

FS Investment is a business development company based in Philadelphia.

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