DEBT |
6 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Debt Disclosure [Abstract] | |
| DEBT | 8. DEBT On October 17, 2025, the Company’s board of trustees approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the Consolidated Appropriations Act of 2018 (which includes the Small Business Credit Availability Act). As a result, the asset coverage requirement applicable to the Company for senior securities was reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity), subject to compliance with certain disclosure requirements. As of March 31, 2026, the Company had $52.0 million debt and its corresponding asset coverage ratio, as computed in accordance with the 1940 Act, was 314%. As of September 30, 2025, the Company had no outstanding debt and its corresponding asset coverage ratio, as computed in accordance with the 1940 Act, was 0%. Credit Facility On October 1, 2025, the SPV entered into a senior secured revolving credit facility with CIBC Bank USA (the “Credit Facility”). Pursuant to the terms of the Credit Facility the revolving period ends October 2, 2028, the maturity date is October 2, 2030 and borrowings are secured by all of the assets held by the SPV. On March 4, 2026, the Company entered into an amendment to the Credit Facility that increased the total borrowing capacity from $65.0 million to $120.0 million. No other material terms of the Credit Facility were modified as a result of this amendment. From October 1, 2025 through October 1, 2026, the Credit Facility bears interest at SOFR (or an alternative risk-free floating interest rate index) plus 187.5 basis points (the “Applicable Margin”). After October 1, 2026 and through the revolving period, the Applicable Margin ranges from 187.5 to 200 basis points, depending on utilization. Following the revolving period, the Applicable Margin resets to 212.5 basis points for the remaining two years of the Credit Facility, maturing in October 2, 2030. The Credit Facility is secured by all assets of the SPV. Both the Company and the SPV have made customary representations and warranties and are required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities. The Credit Facility contains covenants, including, but not limited to, restrictions of loan size, industry requirements, average life of loans, geographic and individual portfolio concentrations, minimum portfolio yield and loan payment frequency. Additionally, the Credit Facility requires maintenance of the income coverage ratio as well as restrictions on certain payments and issuance of debt. As of March 31, 2026, the SPV had $52.0 million in borrowings outstanding under the Credit Facility and $68.0 million of available borrowing capacity subject to leverage and borrowing base limitations. As of September 30, 2025, the SPV had no outstanding debt. As of March 31, 2026, the Credit Facility had a weighted average interest rate of 5.6%. As of March 31, 2026, the Company was in compliance with the terms of the Credit Facility. |