Hamilton Lane Advisors, a leading PE advisory firm with more than USD421 billion in advisory assets and north of USD66 billion in discretionary AUM, has filed an 8K with the Securities Exchange Commission, having entered into a USD75 million Multi-Draw Term Loan and Security Agreement with First Republic Bank.
Hamilton Lane Advisors, a leading PE advisory firm with more than USD421 billion in advisory assets and north of USD66 billion in discretionary AUM, has filed an 8K with the Securities Exchange Commission, having entered into a USD75 million Multi-Draw Term Loan and Security Agreement with First Republic Bank.
Under the term loan agreement, Hamilton Lane will have the ability to draw upon the USD75 million loan facility over the next 12 months, according to the 8K filing. The term loan facility is for working capital and general corporate purposes. Borrowings under the term loan facility, which matures on 1 July, 2030, accrue interest at a rate of 4 per cent.
The term loan agreement contains covenants that, among other things, limit Hamilton Lane’s ability to incur indebtedness. These include: transfer or dispose of assets; merge with other companies; create, incur or allow liens; make investments; pay dividends or make distributions; engage in transactions with affiliates; and take certain actions with respect to management fees.
Hamilton Lane will also be required to maintain a certain level of management fee in each fiscal year during the duration of the term loan facility.
On 24 March, 2020, Hamilton Lane and First Republic also amended the Original Term Loan Agreement and Revolving Loan Agreement that was in place. The date amortisation has been extended to 1st July 2020 and the maturity date to 1st July 2027. In addition, the interest rate has changed to a floating rate per annum, equal to the greater of (a) the Prime Rate minus 1.5 per cent and (b) 2.25 per cent.
