Business Development refinances with revolvers totaling $600 million

By Sarah Lizee

Olympia, Wash., Sept. 3 – Business Development Corp. of America refinanced with a new $600 million of revolving credit facilities on Aug. 28, according to an 8-K filing with the Securities and Exchange Commission.

The facilities consist of a $300 million revolver with BDCA Funding I, LLC as borrower, and Wells Fargo Bank, NA as administrative agent and U.S. Bank NA as collateral agent and a $300 million revolver with BDCA 57th Street Funding, LLC as borrower and JPMorgan Chase Bank, NA as administrative agent and U.S. Bank as collateral agent.

Under each facility, Business Development is the collateral manager.

The facilities refinance the company’s previous $575 million syndicated revolving credit facility.

The new Wells Fargo revolver provides for borrowings through Aug. 28, 2023, and any amounts borrowed will mature on Aug. 28, 2025.

The Wells Fargo revolver is priced at Libor plus a spread calculated based upon the composition of loans in the collateral pool, which will not exceed 275 basis points. There is a 0% Libor floor.

The JPMorgan revolver provides for borrowings through Aug. 28, 2023, and any amounts borrowed will mature on Aug. 28, 2023 unless the administrative agent exercises its option to extend the maturity date to Aug. 28, 2024.

The JPMorgan revolver is priced at Libor plus 275 bps, subject to a 0% Libor floor.

New York-based Business Development was established to provide capital primarily in the form of senior secured loans to middle-market enterprises. It invests in both the debt and equity of private middle-market companies.

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