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Fifth Street Senior Floating Rate Corp. Begins Deploying IPO Funds

Date: Aug 09, 2013 @ 07:50 AM
Filed Under: Industry News

Fifth Street Senior Floating Rate Corp. announced that it has closed four separate senior secured debt investments totaling $26 million, $24 million of which was funded at close. FSFR financed the transactions with a portion of the net proceeds raised in its initial public offering in July 2013 to make investments in middle market companies primarily in the form of senior secured loans. The transactions supported leveraged buy-outs or refinancings of private equity-backed companies in the healthcare services, technology and oil and gas equipment industries.

"The demand for senior loans remains robust," stated Leonard Tannenbaum, FSFR's Chief Executive Officer, adding, "Combining the Fifth Street platform's long-standing industry relationships with our capital markets and syndication capabilities positions us to capitalize on these compelling opportunities."

Fifth Street Senior Floating Rate Corp. is a business development company that invests primarily in senior secured loans, including first lien, unitranche and second lien debt instruments, that pay interest at rates which are determined periodically on the basis of a floating base lending rate, made to private middle market companies whose debt is rated below investment grade. The Company's investment objective is to maximize its portfolio's total return by generating current income from its debt investments while seeking to preserve its capital.

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