Launched in June
2024, the sustainability-linked revolving credit facility
was designed to support working-class communities.
MIAMI and NEW
YORK, Oct. 1, 2024 /PRNewswire/
-- Lafayette Square USA, Inc.
("Lafayette Square"), a business development company, announced
today that ING Capital LLC ("ING") has increased commitments to the
hybrid credit facility that closed earlier this year. EverBank,
N.A. ("EverBank") and First Citizens Bank ("First Citizens") will
provide additional commitments which will increase the existing
facility from $75 million to
$150 million. Lafayette Square's
revolving credit is expected to continue to grow through an
uncommitted accordion feature through which existing and new
lenders may, at their option, agree to provide additional financing
up to $250 million. The annual
interest rate applicable to borrowings under the facility is based
on a range of alternative rates, including term SOFR plus a margin
of 2.70%.
In addition, the annual interest rate will be adjustable based
on an innovative sustainability linked loan ("SLL") pricing
structure, with ING acting as the sole Sustainability Structuring
Agent. The SLL's key performance indicators directly reference
Lafayette Square's 2030 goals to 1) support 100,000 working-class
jobs, 2) invest 50 percent of capital to support working-class
communities, and 3) curate benefits for 50 percent of its portfolio
companies through its Worker Solutions platform. This revolver
works in tandem with Lafayette Square's recently announced
Specialized Small Business Investment Company ("SSBIC") license,
granted by the U.S. Small Business Administration ("SBA") and
focused on providing financing to small business ventures owned and
managed by historically underrepresented populations, specifically
women, minorities, and veterans.
"We are uniquely positioned, with access to a
sustainability-linked corporate revolver and two SBIC licenses
providing 10-year SBA debentures, to benefit from low-cost,
long-duration liabilities" said Damien
Dwin, Founder and CEO of Lafayette Square's parent company.
"ING's expanded commitment to this revolver, alongside new
commitments from EverBank and First Citizens, indicates growing
industry alignment with our mission to stimulate economic activity
in working-class places while creating economic benefits for our
shareholders."
"Lafayette Square broke new ground for the sector with the
sustainability-linked financing back in June. It's great to see
their ambition growing already, and we're pleased to be there to
help them achieve their goal of empowering business in local
communities," said Grace Fu, head of
Fund Finance Americas at ING.
Along with financing, Lafayette Square offers its portfolio
companies access to Worker Solutions, a custom-built platform
offering interest rate step-downs to portfolio companies adopting
services and HR policies designed to measurably reduce turnover and
increase adoption of healthcare and retirement benefits.
About ING Capital LLC
ING Capital LLC is a financial
services firm offering a full array of wholesale financial lending
products and advisory services to its corporate and institutional
clients. ING Capital LLC is an indirect U.S. subsidiary of ING Bank
NV, part of ING Groep NV (NYSE: ING), a global financial
institution with a strong European base. The purpose of ING Bank is
empowering people to stay a step ahead in life and in business. ING
Bank's more than 60,000 employees offer retail and wholesale
banking services to customers in over 40 countries. Please note
that neither ING Groep NV nor ING Bank NV have a banking license in
the U.S. and are therefore not permitted to conduct banking
activities in the U.S.
About Lafayette Square
Lafayette Square invests in
middle market companies while positively supporting people and
communities. We believe the demand for capital in businesses
headquartered outside of high-income places is an overlooked
opportunity. We seek investment opportunities that
stimulate economic growth across the
United States through the creation and preservation of
working-class jobs. For more information, please visit
www.lafayettesquare.com.
Media Contact:
Jansel Murad
Dukas Linden Public Relations
646-722-6537
lafayettesquare@dlpr.com
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SOURCE Lafayette Square Holding Company