MIAMI and NEW
YORK, June 25, 2024 /PRNewswire/ -- Lafayette
Square USA, Inc. ("Lafayette
Square"), a business development company, announced today that it
has entered into a new hybrid credit facility with ING Capital LLC
("ING"). The facility will be secured by a combination of
Lafayette's Square's portfolio and
the unused capital commitments of its investors and will support
Lafayette Square's direct lending activities, with a primary focus
on first lien senior secured loans.
The credit facility, which matures in June 2029, will provide Lafayette Square with
access to a revolving line of credit, initially committed by ING
and expected to grow through an uncommitted accordion feature
through which existing and new lenders may, at their option, agree
to provide additional financing up to $250
million. The annual interest rate applicable to borrowings
under the facility will be based on a range of alternative rates,
including term SOFR plus a margin of 2.70%.
In addition, the annual interest rate will be adjustable based
on an innovative sustainability linked loan ("SLL") pricing
structure, with ING acting as the sole Sustainability Structuring
Agent. The SLL's key performance indicators directly reference
Lafayette Square's 2030 goals to 1) support 100,000 working-class
jobs, 2) invest 50 percent of capital to support working-class
communities, and 3) curate benefits for 50 percent of its portfolio
companies through its Worker Solutions platform.
Along with financing, Lafayette Square offers its portfolio
companies access to Worker Solutions, a custom-built platform
offering interest rate step-downs to portfolio companies adopting
services and HR policies designed to measurably reduce turnover and
increase adoption of healthcare and retirement benefits.
"We look forward to partnering with ING as we pursue our 2030
goals regarding working class people and places," said Damien Dwin, Founder & CEO of Lafayette
Square's parent company. "On behalf of the shareholders at
Lafayette Square USA, Inc, I thank
ING for creating this innovative structure aligned with our mission
to stimulate economic activity in working class places while
creating economic benefits for our shareholders."
"Lafayette Square's credit strategy is very well aligned with
our worldview and approach. By simultaneously providing middle
market companies liquidity and credit, alongside resources to
improve the financial resiliency of their workforces, Damien and
his team are creating stronger, more productive businesses in local
communities." said Grace Fu, head of
Fund Finance Americas at ING. "This SLL marks a significant
milestone in the BDC market, driving credit to companies that
create positive social impact," further added Cindy Jia, director, Sustainable Finance,
Americas at ING.
About ING Capital LLC
ING Capital LLC is a financial
services firm offering a full array of wholesale financial lending
products and advisory services to its corporate and institutional
clients. ING Capital LLC is an indirect U.S. subsidiary of ING Bank
NV, part of ING Groep NV (NYSE: ING), a global financial
institution with a strong European base. The purpose of ING Bank is
empowering people to stay a step ahead in life and in business. ING
Bank's more than 60,000 employees offer retail and wholesale
banking services to customers in over 40 countries. Please note
that neither ING Groep NV nor ING Bank NV have a banking license in
the U.S. and are therefore not permitted to conduct banking
activities in the U.S.
About Lafayette Square
Lafayette Square invests in
middle market companies while positively supporting people and
communities. We believe the demand for capital in businesses
headquartered outside of high-income places is an overlooked
opportunity. We seek investment opportunities that stimulate
economic growth across the United
States through the creation and preservation of
working-class jobs. For more information, please visit
www.lafayettesquare.com.
Media Contact:
Jansel
Murad
Dukas Linden Public Relations
646-722-6537
lafayettesquare@dlpr.com
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SOURCE Lafayette Square Holding Company