Hancock Park Corporate Income Adjusts Credit Facility Terms

The amendments streamline financial thresholds to support corporate funding and strategic investments.

December 18, 2024

Strategic Adjustments to Credit Facility

Hancock Park Corporate Income, Inc., a Maryland-based investment company, recently announced significant revisions to its senior secured revolving credit facility with Banc of California. The amendments, effective December 17, 2024, aim to enhance the company’s financial flexibility while adapting to its evolving corporate strategy.

Key changes include a reduction in the maximum commitment amount under the agreement from $20 million to $15 million. Financial covenant adjustments were also made, lowering the minimum tangible net asset value requirement from $15 million to $12 million. Additionally, the minimum quarterly net investment income threshold after management and incentive fees has been revised to $200,000, down from the prior $300,000.

These changes reflect the company’s focus on aligning its financial parameters with its operational and investment objectives, ensuring continued adaptability in a dynamic market landscape.

Revised Framework Supports Strategic Goals

The amended credit facility underscores Hancock Park’s commitment to financial stability and operational efficiency. Serving as a core component of the company’s corporate funding and investment strategy, the adjustments provide greater flexibility for managing resources effectively.

While the revisions reduce certain financial thresholds, they also reflect a balanced approach to maintaining liquidity while pursuing strategic investments. The company incurred standard fees and expenses during the amendment process, further highlighting its dedication to maintaining a strong financial framework.

Hancock Park Corporate Income continues to focus on delivering long-term value for its shareholders through strategic investments. By proactively modifying its financial agreements, the firm positions itself to navigate current market conditions effectively while maintaining its growth trajectory.