As a non-bank specialty finance company, EPC is not subject to leveraged lending guidelines. We are less sensitive to the total leverage ratio of a given borrower and whether a direct lender’s term loan is structured as covenant-lite.
We can take a portion of first-out term loan at a compressed yield in order to enhance the direct lender’s yield on its last-out position.
We do not require a minimum amount of funding at closing in revolver transactions.
If necessary on a given transaction, the direct lender may purchase our first-out position at par plus accrued interest (no prepayment penalty) on short notice.