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FS Investment II subsidiary gets $300 million five-year revolver
By Angela McDaniels
Tacoma, Wash., Dec. 2 – FS Investment Corp. II special-purpose financing subsidiary Meadowbrook Run LLC entered into a $300 million multi-currency revolving credit facility due Nov. 22, 2024, according to an 8-K filing with the Securities and Exchange Commission.
Morgan Stanley Senior Funding, Inc. is the administrative agent. Wells Fargo Bank, NA is the collateral agent, account bank and collateral custodian.
The revolver has a $100 million accordion feature.
The revolving period during which Meadowbrook Run is permitted to borrow, repay and reborrow advances will end on Nov. 22, 2022.
Advances are subject to the maintenance of a borrowing base.
The interest rate is one-month Libor, subject to a floor of zero, plus a spread of 225 basis points during the revolving period and 275 bps after the revolving period.
After the initial four-month ramp-up period and prior to the end of the revolving period, Meadowbrook Run is required to use a minimum of 70% of the committed facility amount. Unused amounts below the minimum utilization amount accrue interest as if they are outstanding as borrowings.
In addition, Meadowbrook Run will pay a non-usage fee during the revolving period on the average daily unborrowed portion of the committed facility amount in excess of the minimum utilization amount. The fee is equal to 25 bps during the ramp-up period and 50 bps thereafter.
The revolver is secured by a first-priority security interest in substantially all of the assets of Meadowbrook Run, including its portfolio of loans and debt securities.
The obligations of Meadowbrook Run under the revolver are non-recourse to FS Investment, and FS Investment’s exposure under the revolver is limited to the value of its investment in Meadowbrook Run.
FS Investment is a business development company based in Philadelphia.
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