v3.26.1
Debt
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt
6.
Debt

At the BDC Election Date, the Fund elected to adopt an asset coverage ratio requirement of 150%. Asset coverage ratio is equal to (i) total assets at the end of the period, less all liabilities and indebtedness not represented by senior securities, divided by (ii) total debt represented by senior securities at the end of the period. As of March 31, 2026 and December 31, 2025, the asset coverage ratio based on the aggregate amount outstanding of the Fund's senior securities was 267% and 311%, respectively.

Revolving Credit Facility

On July 10, 2025 the Fund entered into a secured revolving credit facility agreement with Wells Fargo Bank NA (the “Revolving Credit Facility”) that allows the Fund to borrow an amount up to $400 million. The facility termination date for the Revolving Credit Facility is July 10, 2030. The interest rate is based on the daily SOFR plus a margin of 205 basis points per annum on the drawn portion, as well as a commitment fee of 50 basis points per annum on any unused portion. In connection with the Revolving Credit Facility, the Fund has pledged certain investments and cash as collateral and such pledged investments may accordingly be restricted as to resale. Certain specified revaluation events related to pledged assets may result in a decrease in the borrowing base, and could incent or require the Fund to pledge additional collateral.

2056 Promissory Notes

On January 29, 2026, the Fund issued $1.5 million in aggregate principal of promissory notes (the "2056 Promissory Notes"). The Fund pays interest on the principal amount of the 2056 Notes at a rate of 12% per annum, payable annually in arrears. The 2056 Promissory Notes mature on January 29, 2056 and may be prepaid by the Fund at any time, in whole or in part, provided that (i) the Fund will pay on the date of such prepayment all accrued and unpaid interest due on such prepaid principal amount to and including the date of prepayment and (ii) if the prepayment occurs within twenty-four months after the issue date of the 2056 Promissory Notes, the Fund will pay a one-time premium.

 

 

 

 

 

 

 

The following tables present the details of the Fund's borrowings as of March 31, 2026 and December 31, 2025.

 

 

March 31, 2026

Facility

 

Total Principal
Amount
Committed

 

 

Principal
Amount
Outstanding

 

 

Carrying Value

 

 

Fair Value

 

 

Coupon

 

Interest
Rate

 

Maturity
Date

Revolving Credit Facility(1)

 

$

400,000,000

 

 

$

246,800,000

 

 

$

246,800,000

 

 

$

246,800,000

 

 

S+2.05%

 

5.71%

 

7/10/2030

2056 Promissory Notes(2)

 

 

1,500,000

 

 

 

1,500,000

 

 

 

1,392,003

 

 

 

1,486,500

 

 

12.00%

 

12.00%

 

1/29/2056

Total

 

$

401,500,000

 

 

$

248,300,000

 

 

$

248,192,003

 

 

$

248,286,500

 

 

 

 

 

 

 

 

 

 

December 31, 2025

Facility

 

Total Principal
Amount
Committed

 

 

Principal
Amount
Outstanding

 

 

Carrying Value

 

 

Fair Value

 

 

Coupon

 

Interest
Rate

 

Maturity
Date

Revolving Credit Facility(1)

 

$

200,000,000

 

 

$

94,300,000

 

 

$

94,300,000

 

 

$

94,300,000

 

 

S+2.05%

 

6.29%

 

7/10/2030

Total

 

$

200,000,000

 

 

$

94,300,000

 

 

$

94,300,000

 

 

$

94,300,000

 

 

 

 

 

 

 
(1)
Interest rate as of March 31, 2026 and December 31, 2025 was daily SOFR+2.05%, respectively. The base interest rate is subject to daily changes. Interest rate does not include the amortization of upfront fees, facility agent fee, unfunded fees and expenses that were incurred in connection with the Revolving Credit Facility.
(2)
Carrying value represents aggregate principal amount outstanding less unamortized debt issuance costs.

 

The fair value of the Fund’s borrowings are categorized as Level 3 within the fair value hierarchy as of March 31, 2026 and December 31, 2025.

The components of the Fund's interest and financing expenses for the three months ended March 31, 2026 and March 31, 2025 were as follows:

 

 

 

For the Three Months Ended March 31,

 

 

2026

 

 

2025

 

 

Stated interest expense

 

$

3,028,996

 

 

$

1,224,975

 

 

Unfunded fees

 

 

253,302

 

 

 

—

 

 

Amortization of deferred financing costs and debt issuance costs

 

 

318,329

 

 

 

179,161

 

 

Total interest expense(1)

 

$

3,600,627

 

 

$

1,404,136

 

 

Weighted average interest rate(2)

 

 

6.42

%

 

 

8.92

%

 

Average borrowings(1)

 

$

227,577,806

 

 

$

63,873,107

 

 
(1)
Total interest expense includes amounts related to the sale/buy back financing arrangements, if applicable.
(2)
Annualized.