Bain Capital Specialty Finance, Inc. Enters into A Senior Secured Revolving Credit Agreement with Sumitomo Mitsui Banking Corporation and with Sumitomo Mitsui Banking Corporation and MUFG Union Bank, N.A
December 30, 2021 at 04:02 pm EST
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On December 24, 2021, Bain Capital Specialty Finance, Inc. (the Company), entered into a senior secured revolving credit agreement (the Credit Agreement) as Borrower, with Sumitomo Mitsui Banking Corporation, as Administrative Agent and Sole Book Runner, and with Sumitomo Mitsui Banking Corporation and MUFG Union Bank, N.A., as Joint Lead Arrangers. The Credit Agreement is effective as of December 24, 2021. The facility amount under the Credit Agreement is $300,000,000 with an accordion provision to permit increases to the total facility amount up to $1,000,000,000. Proceeds of the loans under the Credit Agreement may be used for general corporate purposes of the Company, including, without limitation, repaying outstanding indebtedness, making distributions, contributions and investments, and acquisition and funding, and such other uses as permitted under the Credit Agreement. The maturity date is December 24, 2026. Interest under the Credit Agreement is equal to (i) an alternate base rate (as described therein) plus 0.75% or 0.875% per annum, (ii) the applicable Eurocurrency Rate (as defined therein) for the relevant currency in which the applicable loans are denominated plus 1.75% or 1.875% per annum or (iii) for loans denominated in Pound Sterling, RFR (as defined therein) plus 1.8693% or 1.9943% per annum, in each case, depending on the Companys rate option election (for loans denominated in US Dollars) and the borrowing base (as of the most recently delivered borrowing base certificate delivered under the Credit Agreement). The Credit Agreement includes customary affirmative and negative covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature.
Bain Capital Specialty Finance, Inc. is an externally managed specialty finance company focused on lending to middle market companies. The Company's investment objective is to generate current income and, to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. Its primary focus is capitalizing on opportunities within Bain Capital Creditâs Senior Direct Lending Strategy, which seeks to provide risk-adjusted returns and current income to investors by investing in middle-market companies with between $10 million and $150 million in annual earnings before interest, taxes, depreciation and amortization. It is focused on senior investments with a first or second lien on collateral and strong structures and documentation intended to protect the lender. It is managed by BCSF Advisors, LP.
Bain Capital Specialty Finance, Inc. Enters into A Senior Secured Revolving Credit Agreement with Sumitomo Mitsui Banking Corporation and with Sumitomo Mitsui Banking Corporation and MUFG Union Bank, N.A