Safeguard Scientifics, Inc. (NYSE: SFE) announced today that the Company has entered into a new $75 million secured, revolving credit facility with HPS Investment Partners, LLC, a leading global investment firm.
At closing, the Company drew $50 million under the credit facility. The credit facility has a three-year term with a scheduled maturity of May 11, 2020 and bears interest at a floating rate. Proceeds from the new facility will be used to repurchase/repay a portion of the Company's 5.25% convertible senior debentures due May 2018 and for general business purposes including new and follow-on capital deployments in promising, growth-stage technology-driven enterprises.
"The HPS-funded facility provides Safeguard with the necessary strategic, tactical and financial flexibility to drive shareholder value," said Stephen T. Zarrilli, President and CEO. "This borrowing facility is different from the Company's prior debt facilities because it enables us to leverage the Company's assets, to pursue long-term growth opportunities."
About Safeguard Scientifics
Safeguard Scientifics (NYSE:SFE) provides capital and relevant expertise to fuel the growth of technology-driven businesses in healthcare, financial services and digital media. Safeguard targets companies that are capitalizing on the next wave of enabling technologies with a particular focus on the Internet of Everything, enhanced security and predictive analytics. Safeguard typically deploys between $5 million and $25 million over the course of its partnership with a company, initially investing in a Series A or B Round and opportunistically in a Seed Round. Safeguard has a distinguished track record of fostering innovation and building market leaders that spans more than six decades. For more information, please visit www.safeguard.com or follow us on Twitter @safeguard.
About HPS Investment Partners
HPS Investment Partners, LLC is a leading global investment firm with a focus on non-investment grade credit. Established in 2007, HPS has approximately 100 investment professionals and over 200 total employees, and is headquartered in New York with ten additional offices globally. HPS was originally formed as a unit of Highbridge Capital Management, LLC, a subsidiary of J.P. Morgan Asset Management, and formerly known as Highbridge Principal Strategies, LLC. In March 2016, the principals of HPS acquired the firm from J.P. Morgan, which retained Highbridge's hedge fund strategies. As of March 2017, HPS has approximately $39 billion of assets under management.
