Rand Capital Obtains $25 Million Senior Secured Credit Facility to Support Future Investments

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BUFFALO, NY, June 27, 2022–(BUSINESS WIRE)–Rand Capital Corporation (Nasdaq: RAND) (“Rand” or the “Company”), a business development company providing alternative financing to lower middle market businesses, announced the closing of a $25 million senior secured revolving financing agreement credit facility. The funds should be used for future portfolio investments. This new senior secured credit facility was provided by M&T Bank.

Daniel P. Penberthy, President and CEO of Rand, said, “The new facility adds another source of capital to support our strategy, which is focused on continued portfolio expansion into income-generating assets to drive investment income and future dividend growth. In addition to the increased liquidity, this facility provides greater flexibility and increased funding commitment compared to our previous credit agreement with the SBA, which was fully repaid during the fourth quarter of 2021.”

The new senior secured credit facility has a term of 5 years to 2027, at an interest rate calculated using SOFR plus 3.5%.

ABOUT RAND CAPITAL

Rand Capital (Nasdaq: RAND) is an externally managed business development company (BDC). The Company’s investment objective is to maximize total return to its shareholders with current income and capital appreciation by concentrating its debt and related equity investments in lower middle market private companies with committed management and experienced in a wide variety of industries. Rand invests in early to late-stage companies that have sustainable, differentiated and market-proven products, revenues of over $2 million and a path to free cash flow or up to $5 million in EBITDA. The Company’s investment activities are managed by its external investment advisor, Rand Capital Management, LLC. Additional information can be found on the Company’s website where it regularly posts information: https://www.randcapital.com/.

Safe Harbor Statement

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than of historical facts, including, but not limited to, statements regarding the Company’s strategy and outlook; statements regarding the intended use of borrowings under the senior secured credit facility; and any assumptions underlying the foregoing, are forward-looking statements. Forward-looking statements relate to future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may”, “will”, “should”, “potential”, “intends of”, “expects”, “strives”, “seek”, “anticipate”, “estimate”, “overestimate”, “underestimate”, “believe”, “could”, “project”, “predict”, “continue”, “target” or other similar words or phrases. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results could differ materially of those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be taken as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially plans, estimates or expectations comp reflect, among other things, (1) changes in legal, regulatory and tax regimes; (2) changes in general economic and/or industry-specific conditions; and (3) other risk factors as detailed from time to time in Rand’s reports filed with the Securities and Exchange Commission (“SEC”), including Rand’s Annual Report on Form 10-K for l fiscal year ended December 31, 2021, quarterly reports on Form 10-Q and other filings with the SEC. Accordingly, these forward-looking statements should be considered Rand’s current plans, estimates and beliefs. Except as required by applicable law, Rand assumes no obligation to update any forward-looking information contained in this release.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220627005719/en/

contacts

Company:
Daniel P. Penberthy
President and CEO
Phone: 716.853.0802
Email: [email protected]

Investors:
Deborah K. Pawlowski
Kei Advisors LLC
Phone: 716.843.3908
Email: [email protected]


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