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NB Private Equity enters new $200m credit facility
24th Dec 2019 11:12
(Sharecast News) - Closed-end private equity investment company NB Private Equity Partners announced entry into a new $200m (£154.56m) credit facility, or $250m including a $50m accordion, with Massachusetts Mutual Life Insurance Company (MassMutual) on Tuesday.
The London-listed firm said that was concurrent with the termination of its credit facility with JP Morgan Chase Bank.
It said the facility had a 10-year borrowing availability period, and an interest rate of L+275 basis points with a 1.0% L floor on drawn amounts.
Minimum utilisation of $60m would kick in 18 months after the closing date, with the facility having an undrawn spread of 55 basis points annually.
The company said it was secured by a security interest in the cash flows from NB's underlying investments.
Kroll Bond Rating Agency had assigned a rating of 'A -' to the new credit facility, and would review the credit rating annually over the life of the facility.
NB said Kroll's analysis of the credit rating considered the portfolio of private equity assets and asset coverage relative to the facility's size, the manager's track record and capabilities, the diversification of its underlying assets, its historic performance and cash flows, as well as overall liquidity and its capital position.
"I am pleased to announce the completion of this new credit facility which provides NBPE with long-term financing at an attractive cost of capital," said chairman William Maltby.
"This new facility lowers NBPE's borrowing costs and increases balance sheet security by providing NBPE the capital resources to continue to meet existing commitments as well as additional flexibility to make new investments as and when attractive opportunities arise."
Maltby said the board believed the terms and tenure of the facility were "extremely attractive", and addressed the firm's capital requirements for the long term.
"This is a continuation of actions by the board and the manager to deliver value to shareholders."
At 1109 GMT, shares in NB Private Equity Partners were down 0.13% at 1,183.46p.
The London-listed firm said that was concurrent with the termination of its credit facility with JP Morgan Chase Bank.
It said the facility had a 10-year borrowing availability period, and an interest rate of L+275 basis points with a 1.0% L floor on drawn amounts.
Minimum utilisation of $60m would kick in 18 months after the closing date, with the facility having an undrawn spread of 55 basis points annually.
The company said it was secured by a security interest in the cash flows from NB's underlying investments.
Kroll Bond Rating Agency had assigned a rating of 'A -' to the new credit facility, and would review the credit rating annually over the life of the facility.
NB said Kroll's analysis of the credit rating considered the portfolio of private equity assets and asset coverage relative to the facility's size, the manager's track record and capabilities, the diversification of its underlying assets, its historic performance and cash flows, as well as overall liquidity and its capital position.
"I am pleased to announce the completion of this new credit facility which provides NBPE with long-term financing at an attractive cost of capital," said chairman William Maltby.
"This new facility lowers NBPE's borrowing costs and increases balance sheet security by providing NBPE the capital resources to continue to meet existing commitments as well as additional flexibility to make new investments as and when attractive opportunities arise."
Maltby said the board believed the terms and tenure of the facility were "extremely attractive", and addressed the firm's capital requirements for the long term.
"This is a continuation of actions by the board and the manager to deliver value to shareholders."
At 1109 GMT, shares in NB Private Equity Partners were down 0.13% at 1,183.46p.