Borrowings |
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| Borrowings | 4. Borrowings Credit Facilities Scotia Credit Facility On May 2, 2024, the Fund entered into a Senior Secured Credit Agreement with The Bank of Nova Scotia, as the administrative agent, and the lenders party thereto from time to time (the “Scotia Credit Facility”). On September 15, 2025 (the “Scotia Credit Facility First Amendment Date”), the Scotia Credit Facility was amended to, among other things, extend the availability period and the maturity date. The following describes the terms of the Scotia Credit Facility as modified through the Scotia Credit Facility First Amendment Date. The Scotia Credit Facility is secured by a perfected first-priority interest in substantially all of the portfolio investments held by the Fund and certain subsidiaries that have been or will be formed or acquired by the Fund (collectively, the “Guarantors”), subject to certain exceptions, and includes a $30,000,000 sublimit for swingline loans, and is expected to be guaranteed by certain of the Fund’s domestic subsidiaries in existence as of the Scotia Credit Facility First Amendment Date. Proceeds of the Scotia Credit Facility may be used for general corporate purposes, including the funding of portfolio investments. The Scotia Credit Facility provides for, in the aggregate, a total of outstanding term loans and revolving credit facility commitments in the principal amount of $125,000,000, which is comprised of (a) a term loan in a principal amount of $25,000,000 and (b) subject to availability under the borrowing base, which is based on the Fund’s portfolio investments and other outstanding indebtedness, a revolving credit facility in a principal amount of up to $100,000,000 (the revolving credit facility increased from $75,000,000 to $100,000,000 on the Scotia Credit Facility First Amendment Date). Maximum capacity under the Scotia Credit Facility may be increased to $400,000,000 through the exercise by the Fund of an uncommitted accordion feature through which existing and new lenders may, at their option, agree to provide additional financing. The availability period with respect to the revolving credit facility under the Scotia Credit Facility will terminate on September 14, 2029 (the “Commitment Termination Date”) and the Scotia Credit Facility will mature on September 13, 2030 (the “Maturity Date”). During the period from the Commitment Termination Date to the Maturity Date, the Fund will be obligated to make mandatory prepayments under the Scotia Credit Facility out of the proceeds of certain asset sales and other recovery events and equity and debt issuances. The Fund may borrow amounts in U.S. dollars or certain other permitted currencies. Amounts drawn under the Scotia Credit Facility in U.S. dollars bear interest at either (i) term SOFR plus margin of either 1.950% per annum or, if the gross borrowing base is greater than or equal to the product of 1.60 and the combined debt amount, 1.825% per annum, or (ii) the alternate base rate plus a margin of either 0.950% per annum or, if the gross borrowing base is greater than or equal to the product of 1.60 and the combined debt amount, 0.825% per annum. The Fund may elect either the term SOFR or alternate base rate at the time of drawdown, and loans denominated in U.S. dollars may be converted from one rate to another at any time at the Fund’s option, subject to certain conditions. Amounts drawn under the Scotia Credit Facility in other permitted currencies bear interest at the relevant rate specified therein plus an applicable margin (including any applicable credit spread adjustment). Following the Scotia Credit Facility First Amendment Date, the Fund also pays a fee of 0.325% on daily undrawn amounts under the Scotia Credit Facility. The Scotia Credit Facility includes customary covenants, including certain limitations on the incurrence by the Fund of additional indebtedness and on the Fund’s ability to make distributions to its shareholders, or redeem, repurchase or retire Common Shares, upon the occurrence of certain events and certain financial covenants related to asset coverage and liquidity and other maintenance covenants, as well as customary events of default. ABPLF Credit Facility On May 2, 2024, ABPLF entered into a Credit Agreement with ABPLF as borrower, the Adviser, as collateral manager, the lenders from time to time parties thereto, The Bank of Nova Scotia, as administrative agent, U.S. Bank Trust Company, National Association, as collateral administrator and collateral agent, and U.S. Bank National Association, as custodian (the “ABPLF Credit Facility” and, together with the Scotia Credit Facility, the “Credit Facilities”). Pursuant to its terms, the ABPLF Credit Facility originally provided for a total commitment amount of up to $200,000,000, split between a total of $100,000,000 in commitments in the case of the Class A-R Loans and Swingline Loans, on a revolving basis, and a total of $100,000,000 in commitments in the case of the Class A-T Loans, on a term basis. On February 24, 2025, ABPLF entered into an amendment (the “First ABPLF Credit Facility Amendment”) to the ABPLF Credit Facility. Among other changes, the First ABPLF Credit Facility Amendment, (i) increased the ABPLF Credit Facility’s maximum commitment for Class A-R Loans on a revolving basis from $100,000,000 to $110,000,000, and (ii) increased the ABPLF Credit Facility’s maximum commitment for Class A-T Loans on a term basis from $100,000,000 to $110,000,000. On February 9, 2026, ABPLF entered into a second amendment (the “Second ABPLF Credit Facility Amendment”) to the ABPLF Credit Facility. The Second ABPLF Credit Facility Amendment, among other changes, (i) decreased the ABPLF Credit Facility’s applicable margin for Class A-R Loans and Class A-T Loans from 1.95% to 1.80% until the last day of the reinvestment period and from 2.45% to 2.30% after the last day of the reinvestment period, (ii) decreased the interest rate cap from 2.25% to 1.80% during the reinvestment period and from 2.45% to 2.30% after the end of the reinvestment period, (iii) extended the stated maturity date to February 9, 2035 and (iv) extended the reinvestment period to February 9, 2028. Amounts drawn under the ABPLF Credit Facility, bear interest at either the Term SOFR Reference Rate, or the weighted average of the Commercial Paper Rate, the Liquidity Funding Rate and the Credit Funding Rate (each as defined in the ABPLF Credit Agreement, the “Applicable Rate”), in each case, plus a margin. Advances used to finance the purchase or origination of any eligible loans under the ABPLF Credit Facility initially bear interest at the Applicable Rate plus a spread of 2.50%. From and after the date of the Second ABPLF Credit Facility Amendment to the last day of the reinvestment period, the applicable margin will be a spread of 1.80% plus 0.10% plus the additional administrative agent fees. The ABPLF Credit Facility is secured by ABPLF’s right, title and interest in the pledged collateral, which includes (but is not limited to): all collateral loans; the custodial accounts, the eligible accounts, and the eligible investments; cash, money, securities, reserves and other property of ABPLF; all related property; and certain agreements entered into in connection with the ABPLF Credit Facility. The ABPLF Credit Facility includes customary covenants, including certain limitations on the incurrence by ABPLF of additional indebtedness, as well as customary events of default. The Fund’s outstanding borrowings through the Credit Facilities as of June 30, 2026 were as follows:
As of June 30, 2026 deferred financing costs and debt issuance costs were $1,243,253 and $799,234, respectively, which remain to be amortized, and are reflected on the consolidated statements of assets and liabilities. The Fund’s outstanding borrowings through the Credit Facilities as of December 31, 2025 were as follows:
As of December 31, 2025 deferred financing costs and debt issuance costs were $898,887 and $577,856, respectively, which remain to be amortized, and are reflected on the consolidated statements of assets and liabilities. Interest Expense on Borrowings For the three and six months ended June 30, 2026 and 2025, the components of interest and other debt expenses related to the borrowings were as follows:
(1) Calculated as the annualized amount of the stated interest and borrowing expense divided by average borrowings for the period. (2) Calculated for the period from initial drawdowns of the Credit Facilities through June 30, 2026 and 2025, respectively. |
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