Fifth Street Finance doubles credit facility to $100 million, with further increase possible

Fifth Street doubles credit facility to $100M

WHITE PLAINS, N.Y. — Business lender Fifth Street Finance Corp. on Thursday said its three-year credit facility with Wells Fargo Bank was doubled in size, to $100 million.

The instrument has an accordion feature that could add an additional $50 million in the future.

The interest rate of the facility was also reduced, to LIBOR plus 3.5 percent annually, with no LIBOR floor.

Fifth Street finance lends to and invests in small and mid-sized companies in connection with private equity sponsors.

In morning trading, Fifth Street shares added 30 cents, or 2.6 percent, to $11.72.