Business Development unit expands debt facility to $232.5 million

By Wendy Van Sickle

Columbus, Ohio, June 9 – Business Development Corp. of America wholly-owned subsidiary BDCA Helvetica Funding, Ltd. expanded its debt facility with UBS AG, London Branch to $232.5 million on Monday, according to an 8-K with the Securities and Exchange Commission.

The increase is a $22.5 million jump from the previous $210 million capacity.

The amendment also increased pricing under the facility to Libor plus 405 basis points from Libor plus 390 bps and increased the permissible percentage of second lien loans from to 70% from 60%.

Borrowings will be used to fund investments in new securities and for other general corporate purposes.

In connection with the amendment, the subsidiary agreed to issue and sell up to $69,474,000 of additional class A notes due April 7, 2018 pursuant to a second amended and restated indenture between the subsidiary and U.S. Bank NA, as trustee. The additional class A notes will be purchased by the company under a June 6 subscription agreement between the company and the subsidiary.

Additionally, on June 3, Business Development subsidiary BDCA 2L Funding I, LLC fully repaid $60 million outstanding under and terminated its finance facility with Deutsche Bank AG, New York Branch.

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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