v3.26.1
Financing Arrangements
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Financing Arrangements Financing Arrangements
In accordance with the 1940 Act, the Company is allowed to borrow amounts such that its asset coverage, as calculated pursuant to the 1940 Act, equals at least 150% after such borrowing. As of June 30, 2026, the aggregate amount outstanding of the senior securities issued by the Company was $572,938. As of June 30, 2026, the Company’s asset coverage was 276%.
The following tables present summary information with respect to the Company’s outstanding financing arrangements as of June 30, 2026 and December 31, 2025. For additional information regarding these financing arrangements, see the notes to the Company’s audited consolidated financial statements contained in its annual report on Form 10-K for the year ended December 31, 2025. See Note 9 to the financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 for a description of amendments or other changes to the financing arrangements during the three months ended March 31, 2026. Any significant changes to the Company’s financing arrangements during the three months ended June 30, 2026 are discussed below.
As of June 30, 2026 (Unaudited)
ArrangementType of ArrangementRateAmount
Outstanding		Amount
Available		Maturity Date
Senior Secured Revolving Credit Facility(1)
Revolving Credit Facility
SOFR+2.125%(2)
$123,438 
(3)
$201,562 July 2, 2029
K-FITS Eiffel-1 Credit Facility(1)
Revolving Credit Facility
SOFR+1.95%(4)
349,000 251,000 September 19, 2030
K-FITS Mount Royal Credit Facility(1)
Revolving Credit Facility
SOFR+1.60%(5)
100,500 299,500 February 13, 2031
Total$572,938 $752,062 
________________
(1)The carrying amount outstanding under the facility approximates its fair value.
(2)The benchmark rate is subject to a 0% floor.
(3)Amount includes borrowings in Euros and British pounds. Euro balance outstanding of €45,000 has been converted to U.S. dollars at an exchange rate of €1.00 to $1.14 as of June 30, 2026. British pound balance outstanding of £35,500 has been converted to U.S. dollars at an exchange rate of £1.00 to $1.33 as of June 30, 2026 to reflect total amount outstanding in U.S. dollars.
(4)The benchmark is determined by reference to the currency advanced, and the applicable margin is determined by the currency advanced. During the reinvestment period, the applicable margin can range from 1.95% to 2.15%; following the reinvestment period, each applicable margin increases by 0.50%.
(5)The benchmark is determined by reference to the currency advanced and is subject to a 0% floor. During the reinvestment period, the applicable margin is 1.60%; following the reinvestment period, the applicable margin increases by 0.25%.
As of December 31, 2025
ArrangementType of ArrangementRateAmount
Outstanding		Amount
Available		Maturity Date
Senior Secured Revolving Credit Facility(1)
Revolving Credit Facility
SOFR+2.125%(2)
$246,562 
(3)
$78,438 July 2, 2029
K-FITS Eiffel-1 Credit Facility(1)
Revolving Credit Facility
SOFR+1.95%(4)
357,500 42,500 September 19, 2030
Total$604,062 $120,938 
________________
(1)The carrying amount outstanding under the facility approximates its fair value.
(2)The benchmark rate is subject to a 0% floor.
(3)Amount includes borrowings in Euros and British pounds. Euro balance outstanding of €46,450 has been converted to U.S. dollars at an exchange rate of €1.00 to $1.17 as of December 31, 2025. British pound balance outstanding of £35,000 has been converted to U.S. dollars at an exchange rate of £1.00 to $1.34 as of December 31, 2025 to reflect total amount outstanding in U.S. dollars.
(4)The benchmark is determined by reference to the currency advanced, and the applicable margin is determined by the currency advanced. During the reinvestment period, the applicable margin can range from 1.95% to 2.15%; following the reinvestment period, each applicable margin increases by 0.50%.
For the six months ended June 30, 2026 and 2025, the components of total interest expense for the Company’s financing arrangements were as follows:
Six Months Ended June 30,
2026
2025
Arrangement(1)
Direct Interest Expense(2)
Amortization of Deferred Financing CostsTotal Interest ExpenseDirect Interest ExpenseAmortization of Deferred Financing CostsTotal Interest Expense
Senior Secured Revolving Credit Facility
$4,229 $288 $4,517 $1,948 $177 $2,125 
K-FITS Eiffel-1 Credit Facility
10,355 376 10,731 3,658 204 3,862 
K-FITS Mount Royal Credit Facility2,639 254 2,893 — — — 
Total$17,223 $918 $18,141 $5,606 $381 $5,987 
________________
(1)Borrowings of each of the Company’s wholly-owned, special-purpose financing subsidiaries are considered borrowings of the Company for purposes of complying with the asset coverage requirements applicable to BDCs under the 1940 Act.
(2)Direct interest expense includes the effect of non-usage fees.
The Company’s average borrowings and weighted average interest rate, including the effect of non-usage fees, for the six months ended June 30, 2026 were $593,236 and 5.81%, respectively. As of June 30, 2026, the Company’s weighted average effective interest rate on borrowings, including the effect of non-usage fees, was 5.95%.
The Company’s average borrowings and weighted average interest rate, including the effect of non-usage fees, for the six months ended June 30, 2025 were $158,698 and 7.07%, respectively. As of June 30, 2025, the Company’s weighted average effective interest rate on borrowings, including the effect of non-usage fees, was 6.88%.
Under its financing arrangements, the Company has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar financing arrangements. The Company was in compliance with all covenants required by its financing arrangements as of June 30, 2026.
K-FITS Eiffel-1 Credit Facility
On May 14, 2026, the Company and K-FITS Finance Eiffel-1 LLC, or Eiffel-1, a wholly-owned, special purpose financing subsidiary of the Company, entered into a Second Amendment to Revolving Credit and Security Agreement, or the Second Amendment, which amends the Revolving Credit and Security Agreement, originally dated as of December 23, 2024, by and among Eiffel-1, as borrower, the Company, as equityholder and as servicer, BNP Paribas, as administrative agent, each of the lenders from time to time party thereto, and Computershare Trust Company, N.A., as collateral agent. The Second Amendment provides for, among other things, a maximum facility amount increase from $400,000 to $600,000.