CAPITALA FINANCE CORP. (NASDAQ:CPTA) Files An 8-K Termination of a Material Definitive Agreement
Item 1.02
On June 19, 2020, Capitala Finance Corp. (the “Company”), which previously entered into a Senior Secured Revolving Credit Agreement with ING Capital LLC, as administrative agent, arranger and bookrunner, and the lenders party thereto (as amended from time to time, the “Credit Facility”), unilaterally terminated the Credit Facility in accordance with its terms.
At the time of termination, there was $60 million of commitments available under the Credit Facility but the Company had no borrowings outstanding under the Credit Facility. The revolving period of the Credit Facility was scheduled to end on October 31, 2021 and the Credit Facility was scheduled to mature on April 30, 2022.
Subject to certain exceptions, pricing under the Credit Facility was based on a rate per annum equal to (i) the one, two, three or six month adjusted LIBOR (subject to a floor of zero), as applicable, plus 3.50% (in the case of eurocurrency loans) or (ii) 2.50% plus the highest of (A) a prime rate, (B) the Federal Funds rate plus 0.50%, (C) three month adjusted LIBOR plus 1.00% and (D) zero (in the case of alternate base rate loans), in each case of the preceding clauses (i) and (ii), subject to a 0.50% step-down in pricing when certain conditions were met.
The Credit Facility was secured by a first priority security interest in all of the Company’s and its subsidiaries’ portfolio investments (other than those held by the Company’s existing Small Business Investment Company (“SBIC”) subsidiary), equity interests in certain of the Company’s direct and indirect subsidiaries (other than the Company’s existing SBIC subsidiary) and substantially all of the Company’s and its subsidiaries’ other assets.
About CAPITALA FINANCE CORP. (NASDAQ:CPTA)
Capitala Finance Corp. is an externally managed non-diversified, closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. Both directly and through its subsidiaries that are licensed by the United States Small Business Administration (SBA), the Company offers financing to business owners, management teams and financial sponsors for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives. It invests in mezzanine, senior subordinated and unitranche debt, as well as senior and second-lien loans and, to a lesser extent, equity securities issued by lower middle-market and middle-market companies. It invests in various sectors, which include oil and gas services, consumer electronics, transportation, financial services and business services. It is managed by Capitala Investment Advisors, LLC.
