NEW YORK, May 10, 2022 (GLOBE NEWSWIRE) — Logan Ridge Finance Corporation (“LRFC” or the “Company”) (Nasdaq: LRFC) today announced the successful refinancing of its entire legacy capital structure, a key milestone and strategic initiative for the Company.
Specifically, on May 10, 2022, the Company amended its existing senior secured revolving credit facility agreement with KeyBank (“KeyBank Credit Facility”), increasing the initial commitment from $25.0 million to $75.0 million. $.0 million, with an uncommitted accordion feature that allows the Company to borrow up to an additional $125.0 million. KeyBank’s amended credit facility has a maturity date of May 10, 2027.
Borrowings under KeyBank’s amended credit facility will bear interest at 1M Term SOFR plus 2.90% during the 3-year revolving term and 3.25% thereafter, with a floor of 0.40% at 1M Term SOFR. The net proceeds to the Company from the initial drawdown were $49.1 million on May 10, 2022.
In addition, as previously announced on April 1, 2022, the Company entered into a note purchase agreement for the issuance of $15.0 million convertible notes due April 2032. Proceeds from the initial draw on the credit from KeyBank, coupled with the net proceeds of the 2032 convertible notes issued in April and current cash on hand, provide the company with enough liquidity to repay its $52.1 million of outstanding 5.75% convertible notes as well as the remaining $22.8 million of 6.00% Notes, both of which mature on May 31, 2022.
Ted Goldthorpe, Managing Director and President of LRFC, said, “We are pleased to report that we have successfully refinanced our entire legacy capital structure at lower interest rates, significantly reducing our cost of loan capital of approximately 7.0% as of March 31. , 2022 to around 5.2% today. KeyBank has been an excellent partner for Logan Ridge and we are pleased to leverage this strong relationship to improve Logan Ridge’s financial position and capital structure. This represents an important milestone for Logan Ridge as we continue to execute on our strategic vision that we presented to shareholders when we became the external manager in July 2021.”
About Logan Ridge Finance Corporation
Logan Ridge Finance Corporation (Nasdaq: LRFC) is a business development company that invests primarily in senior loans and, to a lesser extent, junior loans and equity securities issued by lower middle market companies. The Company invests in successful and well-established middle-market companies that operate in a wide range of industries. It uses fundamental credit analysis, targeting investments in companies with relatively low levels of cyclicality and operational risk. For more information, visit loganridgefinance.com.
About Mount Logan Capital Inc.
Mount Logan Capital Inc. is an alternative asset management firm focused on public and private debt securities in the North American market. The Company seeks to source and actively manage loans and other debt-like securities with credit-oriented characteristics. The Company actively sources, evaluates, underwrites, manages, monitors and invests in loans, debt securities and other credit-oriented instruments that offer attractive risk-adjusted yields and low risk of capital depreciation over throughout the credit cycle.
About BC Partners Advisors LP and BC Partners Credit
BC Partners is a leading international investment firm with over $40 billion in assets under management in private equity, private credit and real estate strategies. Founded in 1986, BC Partners has played an active role in developing the European buyout market for three decades. Today, BC Partners’ leaders operate in all markets as an integrated team across the firm’s offices in North America and Europe. Since its inception, BC Partners has made 117 private equity investments in companies with a total enterprise value of €149 billion and is currently investing its eleventh private equity fund.
BC Partners Credit was launched in February 2017 and has pursued a strategy focused on identifying attractive credit opportunities in any market environment and across all sectors, leveraging deal sourcing and the infrastructure provided by BC Partners.
Caution Regarding Forward-Looking Statements
This communication contains “forward-looking” statements. Forward-looking statements relate to future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may”, “will”, “should”, “potential”, “intends of”, “expects”, “strives”, “seek”, “anticipate”, “estimate”, “overestimate”, “underestimate”, “believe”, “could”, “project”, “predict”, “continue”, “target” or other similar words or expressions. Forward-looking statements are based on current plans, estimates and expectations which are subject to risks, uncertainties and assumptions. If one or more of such risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results could differ materially from those indicated or anticipated by such forward-looking statements.The inclusion of such statements should not be construed as a representation that such plans, estimates or expectations will be nt realized. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include the risk factors detailed in the Company’s reports filed with the Securities and Exchange Commission (“SEC”), including the the Company’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC.
All forward-looking statements speak only as of the date of this communication. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information or new developments, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
For more information, contact:
Logan Ridge Financial Corporation
650 Madison Ave, 23rd Floor
New York, NY 10022
Equity Group Inc.