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Fifth Street Asset Management Closes $176MM Credit Facility

November 07, 2014, 07:36 AM
Filed Under: Lender Finance

Fifth Street Asset Management announced the closing of a $176 million, five-year syndicated senior unsecured revolving credit facility, jointly led by Morgan Stanley Senior Funding, Inc. and Sumitomo Mitsui Banking Corporation. The credit facility was undrawn at close and has a $100 million accordion feature for total capacity of up to $276 million. Borrowings under the credit facility will initially accrue interest at LIBOR plus 200 basis points.

The credit facility was extended to Fifth Street Holdings L.P. in conjunction with FSAM's recent initial public offering to, among other uses, facilitate the growth of FSAM's existing business lines, provide seed capital to expand into complementary businesses and funds, pay operating expenses and cover working capital needs.

Morgan Stanley and SMBC acted as joint lead arrangers and joint book-runners on the transaction, with SMBC also acting as administrative agent. The other members of the syndicate group include JPMorgan Chase Bank, N.A., Royal Bank of Canada, Credit Suisse AG, Cayman Islands Branch and East West Bank.

"We are excited about the closing of our $176 million unsecured credit facility in connection with FSAM's initial public offering. The attractive terms of the facility should provide FSAM with the necessary financial flexibility to support continued growth," said Leonard M. Tannenbaum, Chief Executive Officer of FSAM, adding, "We appreciate the support of all six lenders in the credit facility and view their participation as a testament to the strength of FSAM's platform."

Fifth Street Asset Management Inc. is a rapidly growing credit-focused asset manager. The firm has nearly $6 billion of assets under management across two publicly-traded business development companies, Fifth Street Finance Corp. and Fifth Street Senior Floating Rate Corp., as well as multiple private investment vehicles.

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