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Products
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Senior Secured Loans
Our senior secured loans generally have terms of 4 to 7 years,
provide for a variable or fixed interest rate and are secured by a
first priority security interest in all existing and future assets
of the borrower. We generally only invest in senior secured loans of
a portfolio company in conjunction with an investment in a junior
secured loan, subordinated debt investment or a “one-stop”
financing. Our senior secured loans may take many forms, including
revolving lines of credit, term loans and acquisition lines of
credit.
Junior Secured Loans
Our junior secured loans generally have terms of 5 to 7.5 years,
provide for a variable or fixed interest rate and are secured by a
second priority security interest in all existing and future assets
of the borrower. We may invest in junior secured loans, such as
“last out” senior notes or second lien notes, on a stand-alone
basis, or in conjunction with a senior secured loan, a subordinated
debt investment or a “one-stop” financing. |
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Subordinated Debt
Our subordinated debt investments generally have
terms of 5 to 7.5 years and provide for a fixed interest
rate. A portion of our subordinated debt investments may
be secured by a second priority security interest in the
assets of the borrower. We may make subordinated debt
investments on a stand-alone basis, or in conjunction
with a senior secured loan, a junior secured loan or a
“one-stop” financing. Our subordinated debt investments
often include an equity component, such as warrants to
purchase common stock in the portfolio company, and
payment-in-kind, or PIK, interest, which represents
contractual interest accrued and added to the principal
that generally becomes due at maturity.
“One-Stop” Financing
Our “one-stop” financing typically includes a
revolving line of credit, one or more senior secured
term loans and a subordinated debt investment. We
believe our ability to provide “one-stop” financing sets
us apart from other lenders who focus on only one or two
layers of the capital structure. Subsequent to our
closing of a “one-stop” financing, we may arrange
replacement financing by another lender for certain
tranches of the financing.
Equity Investments
In certain situations, we may make non-control,
equity co-investments in companies in conjunction with
private equity sponsors, which we generally expect to be
less than $2.0 million. We generally seek to structure
our equity investments to provide us with minority
rights provisions and event-driven puts. We also seek to
obtain registration rights in connection with these
investments, which may include demand and “piggyback”
registration rights. |
