JP Morgan Private Equity Limited (JPEL) has reached agreement on the terms of a new multi-currency credit facility in the amount of USD150 million with Lloyds Bank Corporate Markets.
Proceeds from the new facility will be used to refinance the Company’s existing USD100 million facility with Fortress Credit Corp, which is scheduled to mature in 2012.
The Lloyds Bank Corporate Markets facility offers the Company multi-currency flexibility, improved pricing and a longer maturity date of May 2013. Key terms of the facility include: LIBOR +275bps for a loan to value ratio (LTV) of less than or equal to 10%, with no LIBOR floor; LIBOR +325bps for a LTV ratio of greater than 10%, with no LIBOR floor.
The Company believes that this larger, multi-currency facility will better support JPEL as it seeks to capitalise on opportunities within the secondary private equity markets and grow assets under management.
"We are pleased to expand our relationship with Lloyds Bank Corporate Markets. This new facility provides a meaningful reduction in debt service costs and significantly enhances JPEL’s financial flexibility to support its overall strategic initiatives" says Trevor Ash, JPEL’s Chairman.
Robina Barker Bennett, Global Head of Funds, Lloyds Bank Corporate Markets adds: "We place great value on our long-standing relationship with JPEL and are pleased to be able to provide the Company with the financing it needs in the context of its growth aspirations.”
