OAKTREE SPECIALTY LENDING CORPORATION Fifth Street Senior Floating Rate Corp. announced the closing of a $175 million senior secured revolving credit facility with Citibank, N.A. (Citibank). The facility has a three-year reinvestment period and a final maturity of January 2020.
Borrowings will accrue interest at LIBOR plus 200 to 225 basis points per annum during the reinvestment period. In conjunction with FSFR's $200 million credit facility from Natixis, New York Branch, the Citibank facility provides FSFR with additional capacity to execute on its strategy of providing flexible floating rate, senior secured loans to private equity sponsor-backed companies. Furthermore, FSFR should benefit from the diversification of institutional lender relationships, a favorable blended cost of borrowings and ample capital to reach its targeted leverage range of 0.80x to 0.90x debt-to-equity.
