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Mount Logan Capital Enters Corporate Credit Facility for up to $25MM

August 23, 2021, 06:00 AM
Related: Canada

Mount Logan Capital announced that its wholly-owned subsidiary, MLC US Holdings LLC entered into a credit agreement, as borrower, with a large US-based asset manager, as administrative agent and collateral agent for the lenders  in respect of a term loan for an initial amount of up to US$25,000,000.

Pursuant to the Credit Agreement, MLC US Holdings is entitled to borrow up to US$25,000,000, of which US$16,500,000 was drawn down as of the closing date. The undrawn portion of the Credit Facility will expire on December 31, 2021, and the outstanding principal amount and accrued but unpaid interest in respect of the Credit Facility will become payable on August 20, 2027, subject to certain adjustments pursuant to the Credit Agreement.

The intended use of the initially drawn proceeds on the Credit Facility is to refinance the existing credit facility at MLCSC Holdings Finance LLC, to repay debt drawn in connection with funding the transaction with Capitala Investment Advisors LLC, pursuant to which Mount Logan Management LLC became the investment adviser of Capitala Finance Corp. (now Logan Ridge Finance Corp.), and to pay fees and expenses related to the Credit Facility. The remaining amount of the Credit Facility is expected to partially fund the Company’s proposed US$10 million investment to support the growth of Ability Insurance Company (“Ability”) alongside the proposed acquisition of Ability in the fourth quarter of 2021.

Ted Goldthorpe, Chief Executive Officer and Chairman of Mount Logan, noted, “We are very pleased with the closing of this Credit Facility which represents Mount Logan’s first long-term corporate credit facility. We have a strong relationship with the Lenders who are aligned to support our future growth.”

As collateral security for its obligations under the Credit Agreement, MLC US Holdings has granted in favor of the Lenders a security interest in all of the assets of MLC US Holdings. In addition, the Company has guaranteed the obligations of MLC US Holdings under the Credit Agreement in favour of the Lenders.

Mount Logan Capital Inc. is an alternative asset management company that is focused on investing in public and private debt securities in the North American market. The Company actively sources, evaluates, underwrites, manages, monitors and primarily invests in loans, debt securities, and other credit-oriented instruments that present attractive risk-adjusted returns and present low risk of principal impairment through the credit cycle.

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