FAQ: Lafayette Square's $65M Senior Notes Private Placement

What is the main purpose of Lafayette Square’s recent financial transaction?

Lafayette Square has entered into a Note Purchase Agreement to issue and sell $65 million in Senior Notes through a private placement to qualified institutional investors, securing capital for its operations.

What are the key terms of the Senior Notes issued by Lafayette Square?

The Senior Notes are unsecured with a 7.00% fixed interest rate per annum and will mature on August 19, 2030, unless redeemed, purchased or prepaid earlier by the company according to their terms.

Why is this private placement significant for Lafayette Square and its investors?

This successful private placement demonstrates institutional investor interest in working-class people and places, and provides diversification benefits alongside Lafayette Square’s existing low-cost liabilities from the U.S. Small Business Administration.

What credit ratings has Lafayette Square received and from which agency?

Morningstar DBRS awarded Lafayette Square USA, Inc. a Long-Term Issuer Rating and Long-Term Senior Debt credit rating of BBB (low) with a Stable Trend, based on strong operating performance, improved profitability, and consistent credit performance.

Which financial institutions were involved in this private placement transaction?

Goldman Sachs served as lead placement agent, with Raymond James and Keefe, Bruyette & Woods (A Stifel Company) serving as co-placement agents for the transaction.

When did this private placement transaction occur?

The transaction was announced on August 21, 2025, shortly after the company reported its second quarter earnings on August 2, 2025.

What factors contributed to Lafayette Square’s strong credit rating?

The rating reflects the firm’s diversified portfolio, risk reduction through enhanced managerial assistance, data-driven origination, diligent underwriting approach, improved profitability, dividend coverage, and conservative leverage profile.

Where can investors find more detailed financial information about Lafayette Square?

Investors can review the company’s second quarter earnings reported on Form 10-Q and Form 8-K, which includes a results presentation summarizing financial and performance information.

What is Lafayette Square’s core business focus and investment strategy?

Lafayette Square is a private credit firm that lends capital to growing middle market companies in working-class places, focusing on non-sponsored deals, enhanced managerial assistance through Worker Solutions®, technology-first data-driven investment strategy, and institutional partnerships.