Full Circle Capital Announces New Senior Revolving Credit Facility
June 03 2013 - 5:15PM
Business Wire
Full Circle Capital Corporation (NASDAQ:FULL) today announced
the closing of a new three-year, senior revolving credit facility
with Sovereign Bank, N.A.
The new $32.5 million credit facility has a maturity date of
June 3, 2016. Borrowings under the facility will bear interest
based on a tiered rate structure, depending upon utilization,
ranging from LIBOR plus 3.25% to 4.00% per annum, or from
Sovereign’s prime rate plus 1.25% to 2.00% per annum, based on Full
Circle’s election at the time of borrowing. A portion of the
borrowings under the credit facility are expected to initially bear
interest at a rate of LIBOR plus 3.75% per annum while the
remaining borrowings are expected to bear interest at Sovereign’s
prime rate plus 1.75% per annum. This represents a significant
improvement in the cost of debt capital from Full Circle’s prior
revolving credit facility, which bore interest at LIBOR plus 5.50%
per annum.
“Refinancing our credit facility with improved interest rates is
an important part of the strategic initiatives we have been
undertaking to optimize Full Circle’s capital structure,” said John
Stuart, Chief Executive Officer of Full Circle Capital Corporation.
“This new facility positions us to significantly reduce our cost of
debt capital which we believe will further our goal of growing net
investment income for our stockholders.”
About Full Circle Capital
Full Circle Capital Corporation (NASDAQ: FULL) is a Rye Brook,
New York based closed-end investment company that has elected to be
treated as a business development company under the Investment
Company Act of 1940. Full Circle Capital lends to and invests in
senior secured loans and, to a lesser extent, mezzanine loans and
equity securities issued by smaller and lower middle-market
companies that operate in a diverse range of industries. Full
Circle Capital’s investment objective is to generate both current
income and capital appreciation through debt and equity
investments. For additional information visit the company’s web
site www.fccapital.com.
Forward-Looking Statements
This press release contains forward-looking statements which
relate to future events or Full Circle Capital's future performance
or financial condition. Any statements that are not statements of
historical fact (including statements containing the words
"believes," "plans," "anticipates," "expects," "estimates" and
similar expressions) should also be considered to be
forward-looking statements. These forward-looking statements are
not guarantees of future performance, condition or results and
involve a number of risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements as a
result of a number of factors, including those described from time
to time in Full Circle Capital's filings with the Securities and
Exchange Commission. Full Circle Capital undertakes no duty to
update any forward-looking statements made herein.
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