FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / Press Releases / Read Press Release


Fifth Street Senior Floating Rate Funds $86.6MM in Glick Joint Venture

April 30, 2015, 07:39 AM
Filed Under: Industry News

Fifth Street Senior Floating Rate Corp. announced that FSFR Glick JV LLC ("FSFR Glick JV"), a joint venture between FSFR and entities controlled by members of the Glick Family ("GF Funding"), has initially invested $86.6 million of its anticipated investment capacity of approximately $300 million in a diversified portfolio of senior secured loans. The initial portfolio of assets, sourced through Fifth Street's platform, is funded with leverage provided by the joint venture's $200 million Credit Suisse AG, Cayman Islands Branch ("Credit Suisse") revolving credit facility and equity of $60 million, where FSFR funded 87.5% and GF Funding funded 12.5%.

FSFR and GF Funding have committed to provide $100 million of subordinated notes and equity to the joint venture, with FSFR providing $87.5 million and GF Funding providing $12.5 million. The $200 million revolving credit facility with Credit Suisse requires a minimum equity balance of $60 million and as the fund makes additional investments, the facility is designed to allow the joint venture to utilize leverage up to a ratio of approximately 2x debt-to-equity.

The joint venture should be accretive to FSFR's earnings and expands its investment capacity to originate and underwrite middle market loans. FSFR believes that funding this initial portfolio of assets should generate a low-teens return on its investment, which is higher than the return on FSFR's current portfolio. FSFR expects to continue funding FSFR Glick JV to its target size of $300 million over the next few quarters.

"We are pleased that FSFR Glick JV has funded its initial portfolio and we expect to leverage Fifth Street's leading middle market origination platform to continue ramping the joint venture over the next few quarters," stated FSFR's Chief Executive Officer, Ivelin M. Dimitrov, adding, "The joint venture is an important long-term partnership for FSFR, which we believe should increase FSFR's returns on its invested equity and expand its investment opportunity set."

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.

Week's News

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.