v3.26.1
Borrowings
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Borrowings
Note 5 – Borrowings
Promissory Note
On May 15, 2024, the Company issued to Adams Street Partners, L.P., an affiliate of the Adviser, a promissory note (as amended, restated or otherwise modified from time to time, the “Promissory Note”) with a principal amount of
 
$50,000 thousand to provide the Company with short-term liquidity. On June 
30
, 2025, the parties amended and restated the Promissory Note to increase the maximum principal amount to $55,000 thousand. On April 1, 2026, in connection with the BDC Election, the parties amended certain terms under the Promissory Note, including a reduction in the maximum principal amount available under the Promissory Note from $55,000 thousand to $25,000 thousand, an extension of the maturity date to the earlier of (1) April 1, 2027 or (2) the date on which the Adviser ceases to be the investment adviser of the Company, and a change in the applicable interest rate from Adjusted Daily Simple SOFR plus 2.00% per annum to Adjusted Daily Simple SOFR plus 1.75% per annum. Also on April 1, 2026, the then-outstanding principal balance under the Promissory Note was satisfied in full and extinguished through an
in-kind
contribution by Adams Street Partners, L.P., with no cash exchanged. Accordingly, no amounts were outstanding under the Promissory Note as of June 30, 2026. The Company may in the future draw amounts under the Promissory Note in accordance with the 1940 Act or, alternatively, terminate the Promissory Note.
Any interest expense recognized under the Promissory Note during the six months ended June 30, 2026 related to amounts outstanding before the outstanding balance was extinguished on April 1, 2026. For the three and six months ended June 30, 2026, Adams Street Partners, L.P. waived $0 and $708 thousand, respectively, of interest expense. For the three and six months ended June 30, 2025, Adams Street Partners, L.P. waived $0 thousand and $0 thousand, respectively, of interest expense.
Credit Facility
On August 6, 2024, the Company, as servicer, seller and equityholder, and ASP BDC Lev Facilitation LLC, its wholly owned financing subsidiary (the “Financing SPV”), as borrower, entered into a Loan and Security Agreement (as
 
 
amended from time to time, the “Loan and Security Agreement”) with each lender from time to time party thereto, Wells Fargo Bank, National Association, as administrative agent, and Computershare Trust Company, N.A., as collateral agent. The Loan and Security Agreement provides for a senior secured revolving credit facility to the Financing SPV (the “Wells Fargo Credit Facility”). On May 1, 2026, the parties entered into the Sixth Amendment to the Loan and Security Agreement (the “Sixth Amendment”), which increased the aggregate commitments from $100.0 million to $140.0 million, extended the scheduled reinvestment period end date from May 6, 2026 to May 1, 2029 and extended the final maturity date from February 6, 2028 to May 1, 2031. Borrowings may be used to acquire eligible portfolio investments, pay related expenses and make certain permitted distributions. Proceeds from borrowings under the Wells Fargo Credit Facility were initially used to acquire Middle Market Senior Loans and pay related expenses and may be used to acquire additional eligible portfolio investments, pay additional related expenses and make certain permitted distributions. Following the end of the reinvestment period, principal collections generally are required to be applied to repay outstanding borrowings.
Borrowings under the Wells Fargo Credit Facility bear interest at the applicable benchmark rate, subject to a 0.0% floor, plus a spread of 2.15%. The applicable spread was initially 2.25% and was reduced to 2.15%, effective August 5, 2025, pursuant to an Amended and Restated Fee Letter. Following the occurrence and during the continuance of an event of default, the spread may be increased to 4.15%. In connection with the Sixth Amendment, the Financing SPV entered into a Third Amended and Restated Fee Letter, which provided for certain upsize and extension fees and revised the
non-usage
fee from a flat annual rate of 0.50% to tiered annual rates ranging from 0.50% to 1.50%, based on the unused facility amount and the applicable threshold. 
The obligations under the Wells Fargo Credit Facility are secured by a first-priority security interest, subject to permitted liens, in substantially all of the Financing SPV’s assets, including its portfolio investments, related proceeds, cash and controlled accounts. Availability is limited to the lesser of the aggregate commitments and a borrowing base determined by reference to eligible portfolio investments, assigned collateral values, applicable advance rates, concentration limitations, reserves for unfunded commitments and minimum equity requirements. A portfolio investment’s borrowing-base value may be reduced or eliminated following specified credit events, including credit deterioration, payment defaults, material modifications or an obligor insolvency. Any resulting borrowing-base deficiency must be cured within the applicable cure period through repayment of borrowings, the deposit of cash or the contribution of additional eligible collateral.
The Wells Fargo Credit Facility contains customary representations, warranties, reporting requirements, affirmative and negative covenants, borrowing-base limitations and events of default. Among other matters, the covenants and other restrictions limit the use of borrowed funds, restrict additional indebtedness, liens, transfers of collateral and distributions by the Financing SPV and require the Company to maintain direct ownership of the Financing SPV, at least $7,000 thousand of specified unencumbered liquidity and an asset-coverage ratio of at least 150% at the end of each fiscal quarter.
As of June 30, 2026, the Company was in compliance in all material respects with the applicable covenants under the Wells Fargo Credit Facility.
The Company’s Promissory Note and Wells Fargo Credit Facility obligations consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands).
 
    
As of June 30, 2026
  
    
 Total Borrowing 
Amount
     
 Borrowings 

Outstanding
     
Unused

 Portion 
(1)
 
     
Amount

 Available 
(2)
 
  
Promissory Note
    $ 25,000        —      $ 25,000      $ 25,000  
Wells Fargo Credit Facility
    $ 140,000      $ 69,250      $ 70,750      $ 14,074  
 
 
    
As of December 31, 2025
  
    
Total Borrowing
Amount
     
Borrowings
Outstanding
     
Unused
Portion 
(1)
     
Amount
Available 
(2)
 
Promissory Note
    $ 55,000      $ 50,000      $ 5,000      $ 5,000  
Wells Fargo Credit Facility
    $    100,000      $    43,750      $    56,250      $    17,869  
(1)
The unused portion is the amount upon which commitment fees are based.
(2)
Available for borrowing based on the computation of collateral to support the borrowings and subject to compliance with applicable covenants and financial ratios.
For the three and six months ended June 30, 2026 and 2025, the components of interest expense and Wells Fargo Credit Facility fees were as follows (in thousands):
 
    
  For the Three Months Ended  
    
  For the Six Months Ended  
  
    
June 30, 2026
    
June 30, 2025
    
June 30, 2026
    
June 30, 2025
  
Interest expense
    $ 934     $ 624     $ 2,435     $ 935  
Unused commitment fee
      100       100       156       232  
Amortization of deferred financing costs
      83       53       163       97  
  
 
 
    
 
 
    
 
 
    
 
 
  
Total interest expense and credit facility fees
    $ 1,117     $ 777     $ 2,754     $ 1,264  
  
 
 
    
 
 
    
 
 
    
 
 
  
Waivers of interest expense
      —       —     $ (708 )      —  
Weighted average contractual interest rate
(1)
      5.77 %      6.95 %      5.78 %      6.72 % 
Average principal debt outstanding
    $ 64,742     $ 35,948     $ 84,267     $ 27,768  
(1)
Weighted average contractual interest rate for the three and six months ended June 30, 2026 and 2025 is calculated as interest expense (excludes unused commitment fees and amortization of deferred financing costs) divided by weighted average debt outstanding.
As of June 30, 2026 and December 31, 2025, accrued interest and credit facility fees payable consisted of the following (in thousands):
 
    
As of
    
  June 30, 2026  
  
  December 31, 2025  
Interest expense payable
    $ 261     $ 21  
Unused commitment fee payable
      28       181  
  
 
 
 
  
 
 
 
Total interest payable
    $ 289     $ 202