OHA Investment Corporation has closed a new $56.5 million secured term loan credit facility ("Credit Facility") with MidCap Financial, which replaces the Company's existing investment facility. Initial proceeds of $40.5 million from this Credit Facility were used to pay off the $38.5 million balance on the firm's previous investment facility, pay transaction expenses and provide balance sheet cash. The remaining $16 million consists of a delayed draw term loan, which is committed for one year, and is available to OHAI to grow its investment portfolio and operate its business.  The Credit Facility bears an interest rate of LIBOR plus 5.35% for Eurodollar Loans, subject to a 1% LIBOR floor, and Base Rate plus 4.35% for Base Rate Loans. The Credit Facility has a maturity date of March 9, 2018, which can be extended for a six-month period at our option.

Commenting on the new Credit Facility, Steven Wayne, President and Chief Executive Officer of the Company, stated, "The closing of this new Credit Facility is an important and positive step for OHAI as we continue to work on transitioning our portfolio away from legacy energy assets as it provides meaningful capital for us to grow and continue to diversify our investment portfolio. We are grateful to our partner, MidCap Financial, for providing us this Credit Facility."

OHA Investment Corporation is a specialty finance company designed to provide its investors with current income and capital appreciation. OHAI focuses primarily on providing creative direct lending solutions to middle-market private companies across industry sectors. OHAI is externally managed by Oak Hill Advisors, L.P., a leading independent investment firm.  Oak Hill Advisors has deep experience in direct lending, having invested approximately $3.8 billion in over 125 direct lending investments over the past 13 years.

MidCap Financial is a middle market-focused, specialty finance firm that provides senior debt solutions to businesses across all industries. The firm's years of experience, strong balance sheet, and flexibility make it a lender of choice for companies across all stages of growth and complexity. MidCap Financial's debt solutions focus in five areas: General and healthcare asset-based working capital loans collateralized by third-party accounts receivable and other assets; Leveraged loans to companies backed by private equity sponsors; Life sciences loans to VC-backed and public pharmaceutical, biotech, and medical device companies; Real estate loans on all types of commercial properties, medical office buildings, various types of senior housing and skilled nursing properties; and Lender finance term loans or revolvers provided across the consumer and commercial finance sectors.