New Credit Facility
LCM secures expanded US$75m credit facility with Northleaf Capital at below 10% interest, with upsizing option to US$150m.
- Credit Facility size US$75m
- Potential upsize US$75m
- Total facility potential US$150m
- Interest rate margin Central bank rate plus 5.25%
- Implied interest rate Below 10%
- Facility term Four years
Select text to share a quote on X · sign in to keep highlights & notes in your LIT notes
Litigation Capital Management Limited (AIM:LIT), a leading international alternative asset manager of disputes financing solutions, is pleased to announce it has secured a new, expanded credit facility (the "Credit Facility") with Northleaf Capital Partners ("Northleaf"), a global private markets investment firm experienced in litigation finance. The new Credit Facility provides access to US$75 million in initial credit with the potential to upsize by a further US$75 million (up to US$150m in total).
The Credit Facility offers significant flexibility to drive LCM's growth strategy, supporting both direct investments and LCM's co-investments into cases funded alongside its managed funds business. It is secured against LCM's assets, is available for general corporate purposes, and has an overall term of four years.
Key features of the Credit Facility include:
Multi-currency availability: Available in USD, GBP, and AUD, the facility supports LCM's global financing needs.
Cost structure: Interest is set at the relevant central bank rate plus 5.25% (compared to central bank rate plus 8% for the prior facility) and is charged on the amount of the facility that has been drawn. Based on current central bank rates, this implies an interest rate below 10%. Unlike the prior facility, there is no profit participation in LCM's direct investments for the lender.
Drawdown period and term: The Credit Facility has a four-year term, with the ability to draw down funds during the initial two years. It includes the usual financial covenants and reporting requirements typical of facilities of this nature.
Patrick Moloney, CEO of LCM, commented: "Securing this expanded Credit Facility is a significant step in LCM's growth journey. With this increased capital flexibility, we are well-positioned to scale our investment portfolio, capture new opportunities, and drive sustainable long-term growth. We are excited to leverage this facility to advance our strategic objectives and support the ongoing growth of our dispute financing solutions."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.