v3.25.2
Borrowings
 6 Months Ended
Jun. 30, 2025
Borrowings [Abstract]  
Borrowings

Note 6. Borrowings

On April 20, 2023, KLCC SPV GS1 LLC, a Delaware limited liability company and subsidiary of the Company, entered into a credit agreement with Goldman Sachs Bank USA (the “Secured Credit Facility”). The maximum principal amount of the Secured Credit Facility as of June 30, 2025 is $500 million, which can be drawn in U.S. dollars subject to certain conditions.

 

On October 11, 2024, KLCC SPV GS1 LLC entered into a First Amended and Restated Credit Agreement (the “A&R Credit Agreement”) with KLCC SPV GS1 LLC, as borrower, the lenders from time to time parties thereto, Goldman Sachs Bank USA, as syndication agent and calculation agent, GS ASL LLC, a administrative agent, State Street Bank and Trust Company, as collateral agent, collateral custodian and collateral administrator. The A&R Credit Agreement amends and restates in its entirety the Credit Agreement entered into on April 20, 2023 (the “Original Closing Date”), by and among KLCC SPV GS1 LLC, as borrower, the lenders from time to time parties thereto, Goldman Sachs Bank USA, as syndication agent and administrative agent, State Street Bank and Trust Company, as collateral agent, collateral custodian and collateral administrator.

The A&R Credit Agreement amends the Secured Credit Facility to, among other things, (i) increase the financing limit under the Secured Credit Facility from $300 million to $500 million, (ii) extend the Reinvestment Period to May 1, 2028, (iii) extend the Scheduled Maturity Date to May 1, 2030 and (iv) replace Goldman Sachs Bank USA as administrative agent with GS ASL LLC. The A&R Credit Agreement also amends the Secured Credit Facility to change the spread charged on borrowings under the Secured Credit Facility from a range of 3.25% to 3.50% (prior to the A&R Credit Agreement) to a range of 2.50% to 2.60%, depending on the percentage of loans in the collateral which constitute BSL loans.

Amounts drawn under the Secured Credit Facility will bear interest at Term SOFR plus a margin. Advances used to finance the purchase or origination of loans under the Secured Credit Facility initially bear interest at Term SOFR plus a spread of (i) with respect to which the BSL Percentage is 15% or higher on such day, 2.50% per annum and (ii) with respect to which the BSL Percentage is less than 15% on such day, 2.60% per annum. In addition, under the Secured Credit Facility, KLCC SPV GS1 LLC is required to utilize a minimum percentage of the financing commitments (such amount, the “Minimum Utilization Amount”), with unused amounts below such Minimum Utilization Amount accruing a fee (“Minimum Utilization Fee”). As of June 30, 2025 and December 31, 2024, there were no unused amounts subject to the Minimum Utilization Fee. Additionally, KLCC SPV GS1 LLC is required to pay non-utilization fees (“Non-Utilization Fees”), on an amount equal to the excess (if any) of (x) the Adjusted Maximum Facility Amount in effect on such day over (y) the greater of the Minimum Utilization Amount and the Loan Amount on such day at a rate of 1.00% per annum. Each defined term without definition in this paragraph shall have the meaning ascribed to such term in the Secured Credit Facility.

The Secured Credit Facility contains customary covenants, including certain limitations on the activities of KLCC SPV GS1 LLC, including limitations on incurrence of incremental indebtedness, and customary events of default. The Secured Credit Facility is secured by a perfected first priority security interest in the assets of KLCC SPV GS1 LLC and on any payments received by KLCC SPV GS1 LLC in respect of those assets. Assets pledged to the lenders under the Secured Credit Facility will not be available to pay the other debts of the Company. As of June 30, 2025 and December 31, 2024, the Company was in compliance with all covenants and other requirements under the Secured Credit Facility.

The estimated fair value of the Secured Credit Facility approximated the principal value of $457,104,745 on the consolidated statement of assets and liabilities as of June 30, 2025 and is categorized as Level III under the ASC 820 fair value hierarchy.

Borrowings of KLCC SPV GS1 LLC are considered borrowings of the Company for purposes of complying with the asset coverage requirements under the 1940 Act.

The following tables summarizes the average debt outstanding and the interest rates on the Secured Credit Facility for the three and six months ended June 30, 2025 and June 30, 2024, respectively:

 

 

For the Three Months Ended June 30,

 

 

 

2025

 

 

2024

 

Average Debt Outstanding

 

$

396,390,459

 

 

$

255,000,000

 

Effective Interest Rate

 

 

7.40

%

 

 

9.24

%

Weighted Average Interest Rate (1)

 

 

6.88

%

 

 

8.79

%

 

(1)
The calculation of weighted average interest rate does not include minimum utilization fees, non-utilization fees, administration fees or the amortization of deferred financing costs.

 

 

For the Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

Average Debt Outstanding

 

$

363,662,612

 

 

$

238,556,019

 

Effective Interest Rate

 

 

7.56

%

 

 

9.54

%

Weighted Average Interest Rate (1)

 

 

6.93

%

 

 

8.80

%

 

(1)
The calculation of weighted average interest rate does not include minimum utilization fees, non-utilization fees, administration fees or the amortization of deferred financing costs.

For the three and six months ended June 30, 2025 and June 30, 2024, the components of interest expense related to the Secured Credit Facility were as follows:

 

 

For the Three Months Ended June 30,

 

 

 

2025

 

 

2024

 

Borrowing interest expense

 

$

6,800,699

 

 

$

5,589,377

 

Minimum utilization fee

 

 

—

 

 

 

—

 

Non-utilization fees

 

 

261,902

 

 

 

113,750

 

Administration fee

 

 

50,099

 

 

 

—

 

Amortization of deferred financing costs

 

 

202,256

 

 

 

171,595

 

Total interest and credit facility fees

 

$

7,314,956

 

 

$

5,874,722

 

 

 

For the Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

Borrowing interest expense

 

$

12,490,085

 

 

$

10,462,158

 

Minimum utilization fee

 

 

—

 

 

 

261,056

 

Non-utilization fees

 

 

685,474

 

 

 

280,486

 

Administration fee

 

 

91,421

 

 

 

—

 

Amortization of deferred financing costs

 

 

366,452

 

 

 

343,189

 

Total interest and credit facility fees

 

$

13,633,432

 

 

$

11,346,889