v3.25.1
Borrowings
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Borrowings

Note 6. Borrowings

In accordance with the 1940 Act, with certain limitations, the Company is allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, is at least 150% after such borrowing. As of March 31, 2025 and December 31, 2024, the Company’s asset coverage was 181.0% and 190.2%, respectively.

Citi Revolving Credit Facility

On January 10, 2024, the Company entered into a revolving credit facility (as subsequently amended on May 22, 2024 and January 14, 2025, the “Citi Revolving Credit Facility”) with Citibank, N.A., as administrative agent, and the lenders and issuing banks party thereto. Borrowings under the Citi Revolving Credit Facility bear interest at Term SOFR plus an interest rate margin of 2.20%. Any amounts borrowed under the Citi Revolving Credit Facility will mature, and all accrued and unpaid interest will be due and payable, on January 11, 2029. The total commitments under the Citi Revolving Credit Facility are $400,000. The Citi Revolving Credit Facility also has an accordion feature, subject to the satisfaction of various conditions, which could bring total commitments under the Citi Revolving

Credit Facility to $500,000. Proceeds from borrowings may be used for general corporate purposes, including the funding of portfolio investments. The Citi Revolving Credit Facility is guaranteed by DCC Holdings I.

MS Revolving Credit Facility

On April 19, 2024 the Company entered into a revolving credit facility (as subsequently amended on September 11, 2024, October 2, 2024 and January 23, 2025, the “MS Revolving Credit Facility” and together with the Citi Revolving Credit Facility, the “Revolving Credit Facilities”), with Morgan Stanley Senior Funding, Inc., as administrative agent, and the lenders and issuing banks party thereto. Borrowings under the MS Revolving Credit Facility bear interest at Term SOFR plus an interest rate margin of 2.25%. Any amounts borrowed under the MS Revolving Credit Facility will mature, and all accrued and unpaid interest will be due and payable, on April 19, 2029. The total commitments under the MS Revolving Credit Facility are $500,000. Proceeds from borrowings may be used for general corporate purposes, including the funding of portfolio investments. The MS Revolving Credit Facility is guaranteed by DCC Holdings II.

Repurchase Obligations

In order to finance certain investment transactions, the Company may, from time to time, enter into repurchase agreements with Macquarie Bank Limited (“Macquarie”), whereby the Company sells to Macquarie an investment that it holds and concurrently enters into an agreement to repurchase the same investment at an agreed-upon price at a future date, not to exceed 90-days from the date it was sold (the “Macquarie Transaction”).

In accordance with ASC Topic 860, these Macquarie Transactions meet the criteria for secured borrowings. Accordingly, the investments financed by the Macquarie Transaction remain on the Company’s Consolidated Statements of Assets and Liabilities as an asset, and the Company records a liability to reflect its repurchase obligation to Macquarie (the “Repurchase Obligations”). The Repurchase Obligations are secured by the respective investment that are the subject of the repurchase agreements.

As of March 31, 2025 and December 31, 2024, the Company had outstanding Repurchase Obligations of $144,046 and $177,321, respectively. Interest expense under these Repurchase Obligations is calculated as the product of (i) the difference in days between the trade date and the settlement date, which will occur on or prior to the 90th calendar day following the trade date, of the respective Macquarie Transaction and (ii) the interest rates listed in the table below, as stipulated in the respective repurchase agreements.

 

Issuer

 

Investment

 

Trade Date

 

Interest Rate

 

Action Elevator Intermediate Holdings, LLC

 

Term Loan

 

1/31/2025

 

 

0.00019838

 

QBS Parent, Inc.

 

Term Loan

 

2/10/2025

 

 

0.00019874

 

BVI Medical, Inc.

 

Term Loan

 

3/5/2025

 

 

0.00019864

 

TSYL Corporate Buyer, Inc.

 

Term Loan

 

3/6/2025

 

 

0.00019824

 

HowardSimon LLC

 

Term Loan

 

3/14/2025

 

 

0.00019861

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company’s outstanding debt obligations were as follows:

 

 

 

March 31, 2025

 

 

 

Aggregate Principal Committed

 

 

Outstanding
Principal

 

 

Carrying
Value

 

 

Unused
Portion (1)

 

 

Amount
Available (2)

 

Citi Revolving Credit Facility

 

$

400,000

 

 

$

357,000

 

 

$

357,000

 

 

$

43,000

 

 

$

20,699

 

MS Revolving Credit Facility

 

 

500,000

 

 

 

350,500

 

 

 

350,500

 

 

 

149,500

 

 

 

23,064

 

Repurchase Obligations

 

 

144,046

 

 

 

144,046

 

 

 

144,046

 

 

 

—

 

 

 

—

 

Total

 

$

1,044,046

 

 

$

851,546

 

 

$

851,546

 

 

$

192,500

 

 

$

43,763

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

Aggregate Principal Committed

 

 

Outstanding
Principal

 

 

Carrying
Value

 

 

Unused
Portion (1)

 

 

Amount
Available (2)

 

Citi Revolving Credit Facility

 

$

300,000

 

 

$

265,300

 

 

$

265,300

 

 

$

34,700

 

 

$

34,599

 

MS Revolving Credit Facility

 

 

300,000

 

 

 

230,000

 

 

 

230,000

 

 

 

70,000

 

 

 

44,197

 

Repurchase Obligations

 

 

177,321

 

 

 

177,321

 

 

 

177,321

 

 

 

—

 

 

 

—

 

Total

 

$

777,321

 

 

$

672,621

 

 

$

672,621

 

 

$

104,700

 

 

$

78,796

 

 

(1)
The unused portion is the amount upon which commitment fees, if any, are based.
(2)
The amount available reflects any limitations related to each respective credit facility's borrowing base.

As of March 31, 2025 and December 31, 2024, $9,062 and $7,679, respectively, of borrowing interest expense and $231 and $152, respectively, of facility commitment fees were included in interest payable. For the three months ended March 31, 2025 and 2024, the weighted average interest rate on all borrowings outstanding was 6.77% and 8.26%, respectively, and the average principal debt outstanding was $751,139 and $36,571, respectively.

The components of interest expense were as follows:

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

2024

 

Borrowing interest expense

 

$

12,720

 

$

511

 

Facility commitment fees

 

 

207

 

 

203

 

Amortization of financing costs

 

 

440

 

 

101

 

Total interest expense

 

$

13,367

 

$

815