Note 5. Debt SPV Facility—On February 18, 2022, the Company, through its wholly-owned subsidiary, SLR HC BDC SPV LLC (the
“SPV”), entered into the $50,000 SPV Facility with JPMorgan Chase Bank, N.A. acting as administrative agent. On May 30, 2023, the
SPV Facility was amended, increasing commitments to $75,000. On January 23, 2024, the SPV Facility commitments were reduced to
$35,000. Effective with an amendment on January 14, 2025, the stated interest rate on the SPV Facility is Term SOFR plus 2.50%
with no SOFR floor requirement and the final maturity date is February 11, 2028. The fee on undrawn commitments is currently
0.875%. The SPV Facility is secured by all of the assets held by the SPV. Under the terms of the SPV Facility, the Company and SPV,
as applicable, have made certain customary representations and warranties, and are required to comply with various covenants,
including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SPV also
includes usual and customary events of default for credit facilities of this nature. As of March 31, 2026, there were $35,000 of
borrowings outstanding under the SPV Facility.
Subscription Facility—On March 19, 2021, the Company established the $25,000 Subscription Facility with ING Capital LLC,
as administrative agent, sole lead arranger and sole bookrunner. Effective with an amendment dated March 12, 2026, the maximum commitment is $12,000, the stated interest rate on the Subscription Facility is SOFR plus 1.90% and the maturity date is March 12, 2027. Under the terms of the Subscription Facility, the Company has made certain customary representations and warranties, and is required to comply with various covenants, including reporting requirements and other customary requirements for similar credit facilities. The Subscription Facility also includes usual and customary events of default for credit facilities of this nature. As of March 31, 2026, there were $7,500 of borrowings outstanding under the Subscription Facility.
The average annualized interest cost for borrowings for the three months ended March 31, 2026 and the year ended December 31, 2025 was 6.28% and 6.95%, respectively. These costs are exclusive of other credit facility expenses such as unused fees. The maximum amount borrowed on the credit facilities during the three months ended March 31, 2026 and the year ended December 31, 2025 was $43,000 and $57,800, respectively.
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