FS Investment’s Hamilton Street gets $150 million revolver via HSBC

By Tali Rackner

Norfolk, Va., Dec. 20 – FS Investment Corp.’s wholly owned special-purpose financing subsidiary Hamilton Street Funding LLC entered into a revolving credit facility on Thursday with HSBC Bank USA, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility provides for a five-year credit facility with a four-year revolving period, during which Hamilton Street may borrow, repay and reborrow advances up to $150 million.

There is an up to $50 million accordion option.

After the revolving period, outstanding advances under the facility must be repaid by 5% each month until the maturity date, when all remaining outstanding advances must be repaid.

Interest is equal to Libor plus 250 basis points.

Hamilton Street will pay an undrawn fee during the revolving period of 50 bps per annum on any unborrowed amounts up to 35% of the commitments, plus 165 bps per annum on any unborrowed amounts above that threshold.

Proceeds will be used to distribute cash to FS Investment, who will use the cash to retire outstanding debt.

The facility matures on Dec. 15, 2021.

U.S. Bank NA is the collateral agent and account bank.

FS Investment is a business development company based in Philadelphia.

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