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Fifth Street Senior Floating Rate Closes $309MM Debt Securitization

Date: Jun 01, 2015 @ 07:37 AM
Filed Under: Industry News

Fifth Street Senior Floating Rate Corp. announced the closing of a $309 million debt securitization transaction ("Debt Securitization"). FSFR is issuing $222.6 million of long-term secured notes (the "2015 Notes") to refinance FSFR's existing $200 million credit facility arranged by Natixis, New York Branch.

The 2015 Notes consist of:

  • $126.0 million of Class A-T Notes which bear interest at a rate of LIBOR plus 1.80%;
  • $29.0 million of Class A-S Notes which bear interest at a rate of LIBOR plus 1.55%;
  • $20.0 million of Class A-R Revolving Notes at Commercial Paper plus 1.80%;
  • $25.0 million of Class B Notes which bear interest at a rate of LIBOR plus 2.65%; and
  • $22.6 million of Class C Notes which bear interest at a rate of LIBOR plus 3.25% and are currently held by FSFR.

FSFR's Debt Securitization is primarily invested in middle-market senior secured loans that are sourced and originated through the Fifth Street platform.  The vehicle has a four-year reinvestment period with a ten-year maturity and two-year non-call period.  Natixis Securities Americas LLC served as the Placement Agent and Natixis, New York Branch served as the Class A-R Note Agent.

"We are pleased to announce the closing of the FSFR Debt Securitization, which was supported by repeat investors and represents the tightest print for a middle market CLO this year. FSFR was able to capitalize on an attractive capital markets environment to optimize our capital structure and lock in low-cost, long-term financing," stated FSFR's Chief Executive Officer, Ivelin M. Dimitrov, adding, "We believe that FSFR is well-positioned to continue investing in senior secured floating rate loans and take advantage of positive business trends, including declining bank participation in middle market leveraged lending."

Fifth Street Senior Floating Rate Corp. is a specialty finance company that provides financing solutions in the form of floating rate senior secured loans to mid-sized companies, primarily in connection with investments by private equity sponsors.

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