Borrowings from Credit Facility |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings from Credit Facility [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings from Credit Facility | 9. Borrowings from Credit Facility
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 June 30, 2026 and 2025, the Company’s asset coverage ratio was 259% and 325%, respectively.
On December 14, 2020, the Company entered into a committed facility agreement with BNP Paribas Prime Brokerage International, Limited (“BNP”) (as amended, the “Loan Agreement” and the facility provided under the Loan Agreement, the “Credit Facility”). The maximum financing available under the Loan Agreement from time to time (the “Maximum Commitment Financing”) is $115,000,000. Amounts borrowed under the Loan Agreement may be used to acquire portfolio investments, subject to the collateral posting and other requirements under the Loan Agreement.
The Credit Facility accrues interest at a rate per annum equal to (i) the Overnight Bank Funding Rate plus an applicable margin of 0.45% with respect to borrowings that use U.S. Treasury securities as collateral, and (ii) 1-month SOFR plus an applicable margin of 1.20%, with respect to borrowings supported by other permitted collateral. BNP has the right to modify these interest rates upon 29 days’ prior notice.
BNP may terminate the Loan Agreement and/or require amounts outstanding under the Loan Agreement to be repaid on at least 29 days’ prior notice. Furthermore, amounts outstanding under the Loan Agreement can be declared due and payable upon certain defaults and termination events specified thereunder.
As of and for the six months ended June 30, 2026 and as of and for the year ended December 31, 2025, Credit Facility activity was as follows:
As of June 30, 2026 and December 31, 2025, the carrying amount of the Company’s borrowings under the Loan Agreement approximated its fair value (which would be classified as Level 2 in the ASC 820 hierarchy). The outstanding balances in the above table are the Company’s amortized cost, which approximates fair value. As of June 30, 2026 and December 31, 2025, the Company was in compliance with all covenants and other requirements under the Loan Agreement. |
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