Raleigh business lender Triangle Capital Corp. (NYSE:TCAP) says it has closed a four-year, $165 million bank line of credit.
Arranged by BB&T Capital Markets and Fifth Third Bank, the new senior secured credit line replaces an earlier $75 million credit package.
The new line also includes an “accordion feature” that allows for the expansion of available credit up to $215 million and an extra two years repayment time, TCAP says in a news release on the transaction.
Any borrowings under the package will be paid off at a rate of LIBOR plus 2.95 percent.
“We are delighted to have such strong support from our three existing long-term partners, as well as six additional lenders in this transaction,” says TCAP CFO Steven C. Lilly. “The high level of lender interest enabled us to increase the commitment by 10 percent from the initially contemplated facility of $150 million.”
TCAP will use the proceeds to make business loans to middle market companies.
Very nice. This and their ability to gain new equity capital at a price/bv which is very high for a BDC allows them to move forward without liquidity concerns. They can just keep growing and all capital will be accretive to legacy shares. Think of the time when they have doubled their present book and what the dividend will be. This is one of those stories, a growth story, that is rare in a BDC. The temptation will be to sell too soon.