Lafayette Square Announces ING's Expanded Commitment to Revolving Credit Facility
Lafayette Square USA, Inc. announced that ING Capital has increased commitments to their sustainability-linked revolving credit facility, launched in June 2024. EverBank, N.A. and First Citizens Bank are providing additional commitments, increasing the facility from $75 million to $150 million. The facility has potential to grow to $250 million through an uncommitted accordion feature.
The annual interest rate is based on term SOFR plus a 2.70% margin, adjustable based on sustainability-linked loan (SLL) performance indicators. These indicators align with Lafayette Square's 2030 goals, including supporting 100,000 working-class jobs and investing 50% of capital in working-class communities.
This revolver complements Lafayette Square's recently acquired Specialized Small Business Investment Company (SSBIC) license, focusing on financing small businesses owned by underrepresented populations. The company also offers its Worker Solutions platform to portfolio companies, providing interest rate reductions for adopting beneficial HR policies.
Lafayette Square USA, Inc. ha annunciato che ING Capital ha aumentato gli impegni per la loro linea di credito revolving legata alla sostenibilità, lanciata a giugno 2024. EverBank, N.A. e First Citizens Bank stanno fornendo impegni aggiuntivi, portando la linea di credito da 75 milioni di dollari a 150 milioni di dollari. La linea ha il potenziale di crescere fino a 250 milioni di dollari attraverso una funzionalità accordion non impegnata.
Il tasso di interesse annuale è basato sul SOFR a termine più un margine del 2,70%, regolabile in base agli indicatori di prestazione dei prestiti legati alla sostenibilità (SLL). Questi indicatori sono allineati con gli obiettivi del 2030 di Lafayette Square, che includono il supporto a 100.000 posti di lavoro per la classe lavoratrice e l'investimento del 50% del capitale nelle comunità di lavoro.
Questo revolver completa la licenza recentemente acquisita di Lafayette Square per le Piccole Imprese di Investimento Specializzate (SSBIC), focalizzandosi sul finanziamento delle piccole imprese possedute da popolazioni sottorappresentate. L'azienda offre anche la sua piattaforma Worker Solutions alle società in portafoglio, fornendo riduzioni dei tassi di interesse per l'adozione di politiche HR vantaggiose.
Lafayette Square USA, Inc. anunció que ING Capital ha incrementado los compromisos con su línea de crédito revolving vinculada a la sostenibilidad, lanzada en junio de 2024. EverBank, N.A. y First Citizens Bank están aportando compromisos adicionales, aumentando la línea de 75 millones a 150 millones de dólares. La línea tiene el potencial de crecer hasta 250 millones de dólares a través de una característica accordion no comprometida.
La tasa de interés anual se basa en el SOFR a plazo más un margen del 2,70%, ajustable según los indicadores de rendimiento de los préstamos vinculados a la sostenibilidad (SLL). Estos indicadores están alineados con los objetivos de Lafayette Square para 2030, que incluyen apoyar 100,000 empleos de clase trabajadora e invertir el 50% del capital en comunidades de clase trabajadora.
Este revolver complementa la licencia recientemente adquirida por Lafayette Square para la Compañía de Inversión en Pequeñas Empresas Especializadas (SSBIC), enfocándose en financiar pequeñas empresas pertenecientes a poblaciones subrepresentadas. La empresa también ofrece su plataforma Worker Solutions a las empresas en su portafolio, brindando reducciones en las tasas de interés por adoptar políticas de recursos humanos beneficiosas.
Lafayette Square USA, Inc.는 ING Capital이 2024년 6월에 시작된 지속 가능성 연계 회전 신용 시설에 대한 약속을 증가시켰다고 발표했습니다. EverBank, N.A. 및 First Citizens Bank는 추가 약속을 제공하여 시설 금액을 7천5백만 달러에서 1억5천만 달러로 증가시킵니다. 이 시설은 비공식적인 애코디언 기능을 통해 2억5천만 달러로 성장할 잠재력을 가지고 있습니다.
연간 이자율은 정기 SOFR에 2.70% 마진을 더한 것으로, 지속 가능성 연계 대출(SLL) 성과 지표에 따라 조정됩니다. 이러한 지표는 Lafayette Square의 2030 목표와 일치하며, 여기에는 10만 개의 근로 계급 일자리 지원과 근로 계급 커뮤니티에 자본의 50%를 투자하는 것이 포함됩니다.
이 회전 신용 시설은 특별 소규모 비즈니스 투자 회사(SSBIC) 라이센스를 최근에 취득한 Lafayette Square를 보완하며, 대표적인 인구가 소유한 소규모 비즈니스에 대한 금융을 중점적으로 다룹니다. 또한 이 회사는 포트폴리오 기업에 HR 정책을 채택하도록 장려하기 위해 이자율을 인하하는 Worker Solutions 플랫폼을 제공합니다.
Lafayette Square USA, Inc. a annoncé qu'ING Capital avait augmenté ses engagements envers sa facilité de crédit revolving liée à la durabilité, lancée en juin 2024. EverBank, N.A. et First Citizens Bank fournissent des engagements supplémentaires, portant la facilité de 75 millions de dollars à 150 millions de dollars. La facilité a le potentiel de croître jusqu'à 250 millions de dollars grâce à une fonctionnalité accordion non engagée.
Le taux d'intérêt annuel est basé sur le SOFR à terme plus une marge de 2,70%, ajustable en fonction des indicateurs de performance des prêts liés à la durabilité (SLL). Ces indicateurs s'alignent sur les objectifs de Lafayette Square pour 2030, y compris le soutien à 100 000 emplois de la classe ouvrière et l'investissement de 50 % du capital dans les communautés de la classe ouvrière.
Ce revolver complète la licence récemment acquise par Lafayette Square pour la Société de Capital Risque Spécialisée dans les Petites Entreprises (SSBIC), en se concentrant sur le financement de petites entreprises détenues par des populations sous-représentées. L'entreprise propose également sa plateforme Worker Solutions aux entreprises du portefeuille, offrant des réductions de taux d'intérêt pour l'adoption de politiques RH avantageuses.
Lafayette Square USA, Inc. gab bekannt, dass ING Capital die Verpflichtungen für ihre nachhaltigkeitsgebundene revolvierende Kreditfazilität, die im Juni 2024 gestartet wurde, erhöht hat. EverBank, N.A. und First Citizens Bank leisten zusätzliche Verpflichtungen, wodurch die Fazilität von 75 Millionen auf 150 Millionen Dollar erhöht wird. Die Fazilität hat das Potenzial, durch ein ungebundenes Accordion-Feature auf 250 Millionen Dollar zu wachsen.
Der jährliche Zinssatz basiert auf dem term SOFR zuzüglich einer 2,70% Marge, die je nach Leistungindikatoren der nachhaltigkeitsgebundenen Kredite (SLL) anpassbar ist. Diese Indikatoren stimmen mit den Zielen von Lafayette Square für 2030 überein, einschließlich der Unterstützung von 100.000 Arbeitsplätzen für die Arbeiterklasse und Investitionen von 50% des Kapitals in Arbeitergemeinschaften.
Diese Revolver ergänzt die kürzlich erworbene Lizenz für Spezialisierten Kleinstunternehmen-Investitionsgesellschaften (SSBIC) von Lafayette Square, die sich auf die Finanzierung von kleinen Unternehmen in Besitz von unterrepräsentierten Bevölkerungsgruppen konzentriert. Das Unternehmen bietet auch seine Worker Solutions-Plattform den Portfoliounternehmen an und gewährt Zinssenkungen, um vorteilhafte HR-Richtlinien zu fördern.
- Increased credit facility from $75 million to $150 million
- Potential to grow facility to $250 million through accordion feature
- Sustainability-linked loan structure aligns with company's social impact goals
- Complements recently acquired SSBIC license for financing underrepresented small businesses
- Offers Worker Solutions platform to portfolio companies for potential interest rate reductions
- None.
Insights
The expansion of Lafayette Square's revolving credit facility from
The sustainability-linked loan (SLL) structure, with adjustable interest rates based on social impact KPIs, is innovative and aligns financial incentives with social goals. This could potentially lower borrowing costs if Lafayette Square meets its targets, improving profitability.
The combination of this expanded revolver with the SSBIC license creates a unique financing structure, leveraging both private and government-backed funding sources. This diversified funding base could provide stability and flexibility in various market conditions.
For ING, this expanded commitment demonstrates its growing focus on impact investing and could enhance its reputation in the ESG space. However, the direct financial impact on ING's
Lafayette Square's expanded credit facility represents a significant step forward in the impact investing space. The innovative SLL structure, tying interest rates to social impact metrics, sets a new standard for aligning financial and social returns.
The company's 2030 goals are ambitious and quantifiable, focusing on job creation, capital allocation to working-class communities and employee benefits. This level of specificity in impact targets is commendable and provides clear benchmarks for measuring success.
The Worker Solutions platform, offering interest rate reductions for portfolio companies that improve employee benefits, is a novel approach to incentivize positive labor practices. This could create a ripple effect, improving working conditions across multiple businesses.
For investors, this model presents an interesting opportunity to participate in both financial returns and measurable social impact. However, it's important to note that achieving these social goals may present challenges and could potentially impact financial performance in the short term.
Launched in June 2024, the sustainability-linked revolving credit facility was designed to support working-class communities.
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. This revolver works in tandem with Lafayette Square's recently announced Specialized Small Business Investment Company ("SSBIC") license, granted by the
"We are uniquely positioned, with access to a sustainability-linked corporate revolver and two SBIC licenses providing 10-year SBA debentures, to benefit from low-cost, long-duration liabilities" said Damien Dwin, Founder and CEO of Lafayette Square's parent company. "ING's expanded commitment to this revolver, alongside new commitments from EverBank and First Citizens, indicates growing industry alignment with our mission to stimulate economic activity in working-class places while creating economic benefits for our shareholders."
"Lafayette Square broke new ground for the sector with the sustainability-linked financing back in June. It's great to see their ambition growing already, and we're pleased to be there to help them achieve their goal of empowering business in local communities," said Grace Fu, head of Fund Finance Americas at ING.
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.
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
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
Media Contact:
Jansel Murad
Dukas Linden Public Relations
646-722-6537
lafayettesquare@dlpr.com
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SOURCE Lafayette Square Holding Company
FAQ
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