Fifth Street Finance Gets $50M Credit Facility

WHITE PLAINS, N.Y. (AP) — Fifth Street Finance Corp. on Thursday said it received a commitment from Wachovia Bank for a three-year credit facility.

The specialty finance company, which lends to and invests in small and mid-sized businesses, said the loan is for $50 million, with an accordion feature which will allow for potential future expansion up to $100 million.

It may be extended for up to two years, and it will bear interest at a rate of LIBOR plus 4 percent per year.

LIBOR, or the London Interbank Offered Rate, is a widely used benchmark for short-term interest rates.

Fifth Street also said it gave notice of termination to the Bank of Montreal for its existing line of credit, which was scheduled to expire Dec. 29.

In light morning trading, Fifth Street shares slipped 9 cents to $9.79. The stock has changed hands between $5.02 and $11.14 in the past 52 weeks.