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Fifth Street Floating Rate Closes $175MM Facility With Citibank

January 21, 2015, 07:52 AM
Filed Under: Lender Finance

Fifth Street Senior Floating Rate Corp., an affiliate of Fifth Street Asset Management Inc., announced the closing of a $175 million senior secured revolving credit facility with Citibank, N.A. The facility has a three-year reinvestment period and a final maturity of January 2020. Borrowings will accrue interest at LIBOR plus 200 to 225 basis points per annum during the reinvestment period.

In conjunction with FSFR's $200 million credit facility from Natixis, New York Branch, the Citibank facility provides FSFR with additional capacity to execute on its strategy of providing flexible floating rate, senior secured loans to private equity sponsor-backed companies. Furthermore, FSFR should benefit from the diversification of institutional lender relationships, a favorable blended cost of borrowings and ample capital to reach its targeted leverage range of 0.80x to 0.90x debt-to-equity.

"We are excited about closing the $175 million credit facility with Citibank and rightsizing FSFR's capital structure. The additional debt capacity should allow FSFR to continue investing in senior secured floating rate loans with strong risk-adjusted returns in support of our private equity clients," said Ivelin M. Dimitrov, Chief Executive Officer of FSFR, adding, "We appreciate Citibank's support and view their partnership as a testament to the strength of FSFR's value proposition and the Fifth Street platform."

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. FSFR's investment objective is to maximize its portfolio's total return by generating current income from its debt investments while seeking to preserve its capital.

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