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HPS Investment Partners Provides $75MM Revolver to Safeguard Scientifics

May 15, 2017, 07:22 AM
Filed Under: Investment Financing

Safeguard Scientifics, Inc. has entered into a new $75 million secured, revolving credit facility with HPS Investment Partners, a global investment firm. 

Safeguard Scientifics, Inc. provides capital and relevant expertise to fuel the growth of technology-driven businesses in healthcare, financial services and digital media. Safeguard targets companies that are capitalizing on the next wave of enabling technologies with a particular focus on the Internet of Everything, enhanced security and predictive analytics. Safeguard typically deploys between $5 million and $25 million over the course of its partnership with a company, initially investing in a Series A or B Round and opportunistically in a Seed Round.  

At closing, the company drew $50 million under the credit facility. The credit facility has a three-year term with a scheduled maturity of May 11, 2020 and bears interest at a floating rate. Proceeds from the new facility will be used to repurchase/repay a portion of the Company's 5.25% convertible senior debentures due May 2018 and for general business purposes including new and follow-on capital deployments in promising, growth-stage technology-driven enterprises.

"The HPS-funded facility provides Safeguard with the necessary strategic, tactical and financial flexibility to drive shareholder value," said Stephen T. Zarrilli, President and CEO. "This borrowing facility is different from the company's prior debt facilities because it enables us to leverage the Company's assets, to pursue long-term growth opportunities."


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