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City National Bank Provides $25MM Revolving Credit Facility to Great Elm Capital

May 07, 2021, 07:57 AM
Filed Under: Lender Finance

Great Elm Capital, a business development company, announced the Company has entered into a Loan, Guarantee and Security Agreement with City National Bank.

The Loan Agreement provides for a senior secured revolving line of credit of up to $25 million (subject to a borrowing base as defined in the Loan Agreement). The Company may request to increase the revolving line in an aggregate amount not to exceed $25 million, which increase is subject to the sole discretion of CNB. The maturity date of the revolving line is the earlier of (i) May 5, 2024 and (ii) May 15, 2022 if the Company’s 6.50% notes due 2022 are not refinanced on or prior to such date. Borrowings under the revolving line bear interest at a rate equal to (i) the London Inter-bank Offered Rate plus 3.50%, (ii) a base rate plus 2.00% or (iii) a combination thereof, as determined by the Company.

Peter A. Reed, GECC’s Chief Executive Officer, stated, “We are pleased to enter into this revolving credit facility with City National Bank, which gives the Company additional financial flexibility on favorable terms so that it may be more fully invested in yield generating assets. City National Bank has been an excellent partner in this process, and we look forward to expanding our relationship with them in the future

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