3rd Dec 2018 13:13
LONDON (Alliance News) - VPC Specialty Lending Investments PLC said Monday it has entered into an agreement with US commercial lender CapitalSource, a division of Pacific Western Bank, to provide the company with a USD75 million gearing facility.
VPC Specialty Lending said the facility has an ability to upsize to USD125 million.
VPC said: "We believe this facility will not only enhance the return of the company, but reduce cash drag associated with its hedging program."
The company will draw USD25 million initially for new and existing balance sheet investments.
VPC expects to be substantially fully invested, including the initial amount drawn under the CapitalSource facility, by the end of the year.
If the full facility is drawn, VPC's look-through gearing ratio at October 31 would increase to 0.24 from 0.06, "well below" the company's approved limit of 1.50.
Shares in VPC Speciality Lending were down 0.5% Monday at 76.38 pence each.
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