v3.26.1
Financing Arrangements
 6 Months Ended
Jun. 30, 2026
Investment Company [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 $1,018,489. As of June 30, 2026, the Company’s asset coverage was 264%.
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+2.25%(2)
$219,989 
(3)
$530,011 May 28, 2031
K-FIT AB-1 Credit Facility(1)
Revolving Credit Facility
SOFR+1.85%(2)
456,250 43,750 October 16, 2030
K-FIT CO-1 Credit Facility(1)
Revolving Credit Facility
SOFR+1.85%(2)
342,250 57,750 March 4, 2030
Total$1,018,489 $631,511 
________________
(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 €73,250 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 £84,000 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.
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)
$390,708 
(3)
$129,292 July 19, 2028
K-FIT AB-1 Credit Facility(1)
Revolving Credit Facility
SOFR+1.85%(2)
427,000 73,000 October 16, 2030
K-FIT CO-1 Credit Facility(1)
Revolving Credit Facility
SOFR+1.85%(2)
316,500 83,500 March 4, 2030
Total$1,134,208 $285,792 
________________
(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 €80,600 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 £71,500 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.
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 Expense
Direct Interest Expense(2)
Amortization of Deferred Financing CostsTotal Interest Expense
Senior Secured Revolving Credit Facility$9,517 $528 $10,045 $2,590 $244 $2,834 
K-FIT AB-1 Credit Facility12,574 497 13,071 7,710 374 8,084 
K-FIT CO-1 Credit Facility9,527 379 9,906 2,700 137 2,837 
Total$31,618 $1,404 $33,022 $13,000 $755 $13,755 
________________
(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 $1,118,109 and 5.66%, respectively. As of June 30, 2026, the Company’s weighted average effective interest rate on borrowings, including the effect of non-usage fees, was 5.68%.
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 $380,622 and 6.83%, respectively. As of June 30, 2025, the Company’s weighted average effective interest rate on borrowings, including the effect of non-usage fees, was 6.73%.
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.
Senior Secured Revolving Credit Facility
On May 28, 2026, the Company entered into a Third Amendment to Senior Secured Revolving Credit Agreement, or the Third Amendment, amending that certain Senior Secured Revolving Credit Agreement, originally dated as of July 19, 2023 (as previously amended by that certain First Amendment to Senior Secured Revolving Credit Agreement, dated as of January 26, 2024, and that certain Second Amendment to Senior Secured Revolving Credit Agreement, dated as of March 17, 2026), or the Credit Agreement, by and among the Company, as borrower, the subsidiary guarantors party thereto, the lenders and issuing banks from time to time party thereto, and Sumitomo Mitsui Banking Corporation, as administrative agent and collateral agent.
The Third Amendment provides for, among other things, (i) an increase in the applicable margin from 2.125% to 2.25% per annum; (ii) the removal of a 0.10% credit adjustment spread with respect to borrowings in U.S. dollars; (iii) an extension of the commitment termination date from July 19, 2027 to May 28, 2030; (iv) an extension of the maturity date from July 19, 2028 to May 28, 2031; (v) an increase of the accordion provision to permit increases to the total facility amount to an amount of up to $1.2 billion; (vi) an increase in the aggregate revolving commitments under the Credit Agreement from $570,000 to $750,000; and (vii) a reset of the minimum shareholders’ equity test.