Borrowings |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Debt Disclosure [Abstract] | |
| Borrowings | Note 7. Borrowings
As part of the Formation Transaction, the Company has entered into a Loan and Security Agreement with the KeyBank National Association (the “Key Bank Credit Agreement”), under which the Company established a $75,000,000 revolving line of credit to provide leverage to the Company. The line of credit has a maturity date of February 28, 2030. Borrowings under the KeyBank Credit Agreement generally bear interest at a rate equal to Adjusted Term SOFR plus 3.25% to 4.00%, subject to the number of eligible loans in the collateral pool. Under the terms of the credit agreement, the Company is subject to several covenants. As of March 31, 2025, the Company was in compliance with these covenants. The line of credit provides for advances that range from 45% to 55%, subject to the number of eligible loans in the collateral pool, on eligible loans held by the Company, as defined under Key Bank Credit Agreement. The Legacy Fund incurred $1,275,142 of debt issuance costs to underwrite this credit agreement, which the Company assumed as part of the Formation Transaction. As of March 31, 2025, the Company had $13,000,000 of gross outstanding borrowings under the line of credit, incurring $14,520 of interest expense with a weighted average interest rate of 8.07% for the period from the Commencement of Operations through March 31, 2025. The Company had average net outstanding borrowings of $826,487 for the period from the Commencement of Operations through March 31, 2025. Additionally, the Company incurred $48,651 of unused borrowing fees at a rate of 0.75% for the period from the Commencement of Operations through March 31, 2025.
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