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Texas Capital Bank Closes $20MM Facility for New U.S. Branch of Terra Firma Capital

August 21, 2018, 08:01 AM
Filed Under: Lender Finance

Terra Firma Capital Corporation announced the closing of a U.S. credit facility totaling $20 million with Texas Capital Bank.

Terra Firma has formed a new U.S. wholly owned subsidiary, TFCC USA LLC with the purpose of holding U.S. loans and investments. The Facility will be secured by the loans and investments held in TFCC USA.  The terms of the Facility provide for an increase to $30 million over time subject to approval by Texas Capital.  The purpose of the Facility will be to support the funding of loans and investments in TFCC USA and allow TFCC to achieve higher yields for the Company's future US transactions.

"This is a very significant milestone for Terra Firma. Over the last several years we have shifted our focus to the US and have successfully evolved into a US Lender, creating a sizeable portfolio of senior debt yielding very attractive risk adjusted returns. This activity has been funded primarily by TFCC's capital and syndicated investors. This new Facility will not only be accretive to the Company, it provides us with the opportunity to graduate to the next phase of our business and increase both the volume of business and the size of our transactions as we continue to execute on our stated strategy in the US.  Further, we expect that the leverage offered by this Facility will allow the Company to achieve significantly greater yields on our new loans and investments and in turn higher earnings per share," said Glenn Watchorn, President and Chief Executive Officer.


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