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SunTrust Bank Agents Amendment to PennantPark Credit Facility

May 30, 2017, 07:00 AM
Filed Under: Investment Financing
Related: SunTrust Bank

PennantPark Investment, a provider of capital to middle-market companies, entered into a First Omnibus Amendment to its Second Amended and Restated Senior Secured Revolving Credit Agreement to, among other things, (i) extend the term of the revolving period to May 25, 2021 and the final maturity date to May 25, 2022, (ii) adjust the size of the Credit Facility to $445 million, (iii) increase the size of the accordion provision to permit increases to the Credit Facility up to $750,000,000 if certain conditions are satisfied and (iv) include certain restrictions on the Borrowing Base with respect to investments located in certain countries and equity interests.

In addition, the Applicable Margin remains at 1.25% for ABR Loans and 2.25% for Eurocurrency Loans; provided that when the Borrowing Base is greater than or equal to 1.85 times the Combined Debt Amount (each as defined in the Credit Facility), the Applicable Margin will be reduced to 1.00% and 2.00%, respectively. SunTrust Robinson Humphrey, Inc. and JPMorgan Chase Bank, N.A. acted as joint lead arrangers and joint book runners. SunTrust Bank will serve as administrative agent for each of the lenders and JPMorgan Chase Bank, N.A. acted as syndication agent of the Credit Facility.

The Credit Facility remains secured by substantially all of the assets of the Company excluding, among other things, assets held by either PennantPark SBIC LP or PennantPark SBIC II LP, which are the Company’s small business investment company subsidiaries.

As part of the amendment, the covenant regarding maintenance of a minimum shareholders’ equity was modified such that it must exceed the sum of (1) $230 million plus (2) 25% of the net proceeds from the sale of equity interests in the Company and its subsidiaries after the effective date (other than proceeds from the sale of equity interests by and among the Company and its subsidiaries).

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