Business Development Corporation of America, a non-traded business development company sponsored by AR Capital that invests in both the debt and equity of private middle market companies, has amended its debt financing arrangement with UBS AG, London Branch.
The arrangement will increase the amount of debt available under the facility from $150 million to $210 million to fund investments in new securities and for other general corporate purposes.
Pricing under the facility is based on three-month LIBOR plus a spread of 3.90 percent per year for the relevant period. In connection with the increase in the amount available under the facility, loans in the company’s portfolio having an aggregate market value of up to $85.08 million will be sold by it to the subsidiary.
In connection with the increase in the amount available, the company, in turn, has entered into certain amendments to the repurchase transaction with UBS, pursuant to the terms of a TBMA/ISMA Global Master Repurchase Agreement.
BDCA was established to provide capital, primarily in the form of senior secured loans, to middle market enterprises.