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HVPE extends credit facility

HarbourVest Global Private Equity, a closed-end investment company, has extended its multi-currency credit facility with LloydsTSB Bank. 

 
The company’s existing USD500m credit facility expires in December 2014.
 
HVPE has refinanced the credit facility, which will remain at USD500m until December 2014 and reduce to USD300m thereafter. The new facility, which contains similar covenants as the existing facility, is now set to expire in April 2018.
 
The applicable Libor margin scales up from 210 basis points over Libor in 2013 to 290 basis points over in 2015 and beyond for borrowings of less than USD100m. In addition, a further 50 basis points will be payable on the total sum drawn if borrowings exceed USD100m, together with a further 25 basis points on the total sum drawn if borrowings should be greater than USD200m.
 

Stuart Howard, chief operating officer of European listed products at HarbourVest, says: “HVPE is pleased to announce the extension of its credit facility in partnership with Lloyds, which underpins the company’s commitment to growing its NAV over the long term for the benefit of shareholders.  The cash generative trending portfolio, and our proven ability to manage the balance sheet during challenging economic conditions, means we are comfortable with the step down to a USD300m facility beyond 2014.  A strong balance sheet allows the company the option to invest in new private equity opportunities in and alongside HarbourVest-managed funds and to maximise its future returns.  The modest increase in fees and margin is a positive exchange for certainty and duration.”

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