Full Circle Capital Corporation announced the closing of a new three-year, senior revolving credit facility with Sovereign Bank, N.A.

The new $32.5 million credit facility has a maturity date of June 3, 2016. Borrowings under the facility will bear interest based on a tiered rate structure, depending upon utilization, ranging from LIBOR plus 3.25% to 4.00% per annum, or from Sovereign's prime rate plus 1.25% to 2.00% per annum, based on Full Circle's election at the time of borrowing. A portion of the borrowings under the credit facility are expected to initially bear interest at a rate of LIBOR plus 3.75% per annum while the remaining borrowings are expected to bear interest at Sovereign's prime rate plus 1.75% per annum. This represents a significant improvement in the cost of debt capital from Full Circle's prior revolving credit facility, which bore interest at LIBOR plus 5.50% per annum.

"Refinancing our credit facility with improved interest rates is an important part of the strategic initiatives we have been undertaking to optimize Full Circle's capital structure," said John Stuart, Chief Executive Officer of Full Circle Capital Corporation. "This new facility positions us to significantly reduce our cost of debt capital which we believe will further our goal of growing net investment income for our stockholders."

Full Circle Capital Corporation is a Rye Brook, New York based closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Full Circle Capital lends to and invests in senior secured loans and, to a lesser extent, mezzanine loans and equity securities issued by smaller and lower middle-market companies that operate in a diverse range of industries. Full Circle Capital's investment objective is to generate both current income and capital appreciation through debt and equity investments.