Note 7. 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, 2026 and December 31, 2025, the Company’s asset coverage was 189.45% and 193.77%, respectively.

Debt outstanding

SG Facility

On January 19, 2024, A-Star SPV and the Company, as equity holder and servicer, entered into a loan facility for revolving and term loans pursuant to a Loan and Servicing Agreement (the “SG Facility”), with the lenders from time to time party thereto, Société Générale, as agent (the “Agent”), U.S. Bank Trust Company, National Association, as collateral agent (“Collateral Agent”) and collateral administrator, and U.S. Bank National Association, as document custodian.

Loans under the SG Facility initially bear interest at (i) a per annum rate equal to Term SOFR plus an additional margin calculated as a percentage of the aggregate principal balance of the underlying collateral obligations (the “Margin”) for loans denominated in U.S. Dollars, (ii) EURIBOR plus the Margin for loans denominated in Euros, (iii) Daily Compounded CORRA plus the Margin for loans denominated in Canadian Dollars, and (iv) Daily Simple SONIA plus the Margin for loans denominated in Great British Pounds. From January 19, 2024 to September 12, 2024, the Margin was equal to 1.90% with respect to the portion of the SG Facility used to finance acquisitions of broadly-syndicated loans (subject to a maximum of 20%) and 2.40% with respect to the portion of the SG Facility used to finance acquisitions of middle-market loans, subject to a step-up of 2.00% following the occurrence of an event of default.

The initial maximum principal amount under the SG Facility was $450 million and included an accordion provision to permit increases to the total facility amount up to a maximum of $1 billion, subject in each case to the satisfaction of certain conditions, and, for any increases above $750 million, consent of the Agent and the lenders. Proceeds from loans made under the SG Facility may be used for A-Star SPV’s general corporate purposes, to fund collateral obligations acquired by A-Star SPV, to pay certain fees and expenses and to make distributions to the Company, subject to certain conditions set forth in the SG Facility. Revolving loans borrowed under the SG Facility may be repaid and reborrowed until the end of the revolving period, which can occur no later than January 19, 2027 (unless extended), and all amounts outstanding under the SG Facility must be repaid by January 19, 2029.

On September 12, 2024, the Company entered into Amendment No. 1 to the SG Facility, among the Company and parties listed above, which provides for an increase in the aggregate commitments of the lenders under the SG Facility from $450 million to $750 million effective September 12, 2024, and to $1 billion through a $250 million term loan commitment effective October 19, 2024. The amendment also provides for, among other things, an increase the accordion feature from $1 billion to $1.75 billion, and revises the margin applicable to borrowings under the facility from 1.90% with respect to the portion of the SG Facility used to finance acquisitions of broadly-syndicated loans (subject to a maximum of 20%) and 2.40% with respect to the portion of the SG Facility used to finance acquisitions of middle-market loans, subject to a step-up of 2.00% following the occurrence of an event of default, to 1.85%, subject to a step-up of 2.00% following the occurrence of an event of default.

On May 15, 2025, the Company entered into Amendment No. 2 to the SG Facility, among the Company and parties listed above, which provides for, among other things, an increase in the aggregate commitments of the lenders under the SG Facility from $1.0 billion to $1.4 billion.

As of March 31, 2026 and December 31, 2025, the Company was in compliance with all covenants associated with the SG Facility.

Revolving Credit Facility

On July 31, 2024, the Company, as Borrower, entered into a senior secured revolving credit facility (the “Revolving Credit Facility”) pursuant to a Senior Secured Revolving Credit Agreement (the “Agreement”), with JPMorgan Chase Bank, N.A., as administrative agent and as collateral agent, the lenders party thereto, and JPMorgan Chase Bank, N.A. and Manufacturers & Traders Trust Company, Royal Bank of Canada, Société Générale and Wells Fargo Securities, LLC, as bookrunners and lead arrangers.

The Company may borrow amounts in U.S. dollars or certain other permitted currencies under the Revolving Credit Facility. Advances under the Revolving Credit Facility drawn in U.S. dollars initially bore interest at a per annum rate equal to 0.75% or 0.875% plus an “alternate base rate” (as described in the Agreement) in the case of any ABR Loan (as defined therein) and 1.75% or 1.875% plus the relevant benchmark rate in the case of any other loan, in each case, depending on the Company’s rate option election and borrowing base (as of the most recently delivered borrowing base certificate delivered under the Agreement). Advances under the Revolving Credit Facility drawn in currencies other than U.S. dollars bear interest at certain local rates consistent with market standards. The Company initially paid a fee of 0.375% on average daily undrawn amounts under the Revolving Credit Facility. The initial principal amount of the Revolving Credit Facility was $675.0 million. The availability period under the Facility will terminate on November 25, 2029 and the Facility will mature on November 25, 2030.

On August 9, 2024, the Company entered into a Commitment Increase Agreement (the “Commitment Increase Agreement”) among the Company, Deutsche Bank AG New York Branch, as the increasing lender (the “Increasing Lender”) and JPMorgan Chase Bank, N.A., as administrative agent, pursuant to the Revolving Credit Facility. The Commitment Increase Agreement provides for an increase in the Revolving Credit Facility from the Increasing Lender’s commitment, thereby bringing aggregate commitments of the lenders under the Revolving Credit Facility from $675.0 million to $725.0 million through the accordion feature in the Revolving Credit Facility. The accordion feature in the Revolving Credit Facility initially allowed the Company, under certain circumstances, to increase the total size of the facility to a maximum aggregate commitment of $1.025 billion.

On November 25, 2025, the Company amended and restated its senior secured Revolving Credit Facility. The amended Revolving Credit Facility provided for, among other things, (i) an extension of the revolver availability period from July 2028 to November 2029, (ii) an extension of the final maturity date from July 2029 to November 2030, (iii) an increase of the total facility amount from $725.0 million to $875.0 million, (iv) a reduction of the commitment fee from 0.375% to 0.325%, (v) an increase of the accordion provision from $1.025 billion to $1.312 billion, (vi) a reduction of the applicable margin in the case of any ABR Loan from 0.75% or 0.875% to 0.65% or 0.775% and in the case of any other loan 1.75% or 1.875% to 1.65% or 1.775% depending on the Company’s rate option election and borrowing base, and (vii) a reset of the minimum shareholders’ equity test.

2025 Notes

On September 30, 2025, the Company entered into a Master Note Purchase Agreement (the “Note Purchase Agreement”) governing the issuance of $500 million in aggregate principal amount of its Series A Senior Notes (the “2025 Notes”) to institutional investors in a private placement. The 2025 Notes have a fixed interest rate of 5.76% per annum and are due on September 30, 2030. Interest on the 2025 Notes will be due semi-annually. These interest rates are subject to increase (up to a maximum increase of 2.00% above the stated rate for the 2025 Notes) in the event that, subject to certain exceptions, the 2025 Notes cease to have an investment grade rating and the Company’s secured debt ratio exceeds certain thresholds. In addition, the Fund is obligated to offer to repay the 2025 Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest if certain change in control events occur. The 2025 Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured, unsubordinated indebtedness issued by the Company.

In connection with the 2025 Notes, the Company entered into an interest rate swap to more closely align the interest rates of its liabilities with its investment portfolio, which consists of predominately floating rate loans. Under the interest rate swap agreement, the Company receives a fixed interest rate of 5.76% and pays a floating interest rate of the three-month SOFR plus 2.38% on a notional amount of $500 million. The Company designated the interest rate swap as the hedging instrument in an effective hedge accounting relationship. See Note 5 for more information regarding the interest rate swap.

Foreign Currency Transactions and Translations

Interest and Debt Expenses

Stated interest expense for the three months ended March 31, 2026 and 2025 was driven by approximately $2,282,764 and $895,635, respectively, of average debt outstanding (at an average effective interest rate of 5.73% and 6.16%) related to borrowings for investments and expenses. Weighted average interest rates do not include impact of unused commitment fees or amortization of deferred financing costs.

As of March 31, 2026 and December 31, 2025, $7,029 and $12,454, respectively, of stated interest expense and $221 and $219, respectively, of unused commitment fees were included in interest payable on the Consolidated Statements of Assets and Liabilities.