Corporate Capital Trust enters $3.44 billion senior secured revolver

By Marisa Wong

Morgantown, W.Va., Aug. 10 – Corporate Capital Trust, Inc. entered into a $3,435,000,000 senior secured revolving credit facility on Aug. 9, according to an 8-K filing with the Securities and Exchange Commission.

FS Investment Corp., FS Investment Corp. II and FS Investment Corp. III are also borrowers under the credit facility.

JPMorgan Chase Bank, NA, ING Capital LLC, BMO Capital Markets Corp. and SunTrust Robinson Humphrey Inc. are the joint bookrunners and joint lead arrangers with JPMorgan Chase Bank as administrative agent, ING Capital as collateral agent and syndication agent and Bank of Montreal and SunTrust Bank as documentation agents.

The credit facility includes an option to request up to $1,717,500,000 of additional commitments.

As of the effective date, the facility provides that the company may borrow up to a sublimit of $1.45 billion.

The facility has a $25 million sublimit for letters of credit.

Availability will terminate on Aug. 9, 2022, and the outstanding loans will mature on Aug. 9, 2023.

The credit facility requires mandatory prepayment of interest and principal upon in some cases during the term-out period beginning on the revolver termination date.

Borrowings are subject to compliance with a borrowing base.

Interest is equal to Libor plus 175 basis points if the borrowing base is greater than or equal to 1.85 times the combined debt amount and Libor plus 200 bps if the borrowing base is less than 1.85 times the combined debt amount.

The credit facility will be subject to a non-usage fee of at least 37.5 bps and up to 50 bps.

In addition, the company must maintain a minimum shareholders’ equity, measured as of each fiscal quarter end, and the company must maintain at all times a 200% asset coverage ratio.

Proceeds of loans drawn at closing were used in part to prepay in full all loans outstanding under the company’s amended and restated senior secured revolving credit agreement dated April 15, 2016 and senior secured term loan agreement dated May 20, 2014.

Corporate Capital is a business development company externally managed by FS/KKR Advisor, LLC. FS/KKR is a partnership between FS Investment and KKR Credit. Asset manager FS Investment is based in Philadelphia.

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