Venture Lending & Leasing VII gets $125 million three-year revolver

By Angela McDaniels

Tacoma, Wash., July 23 - Venture Lending & Leasing VII, Inc. entered into a $125 million secured revolving loan facility due July 18, 2016 on Thursday, according to an 8-K filing made Tuesday with the Securities and Exchange Commission.

Wells Fargo, NA and Union Bank, NA were the lead banks.

The interest rate is Libor plus 225 basis points, and the commitment fee is 25 bps.

The revolver has a $175 million accordion feature.

Borrowings are collateralized by receivables under loans advanced by the company with assignment to the financial institution plus other assets of the company.

The company said about $1.3 million of fees and expenses were incurred in connection with the facility, which will be amortized on a straight-line basis over the expected life of the facility.

The facility contains financial covenants related to minimum debt service coverage ratio, interest coverage ratio, unfunded commitment ratio, maximum quarterly loan loss reserve ratio and maximum annual loss reserve ratio.

Venture Lending & Leasing VII is a non-diversified, closed-end management investment company based in Portola Valley, Calif., that provides debt financing to venture capital-backed companies.

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