v3.26.3
Debt
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Debt

6. DEBT

On October 6, 2022, the Initial Member approved the application of the reduced asset coverage requirements in Section 61(a)(2) of the Investment Company Act to the Company and such election became effective the following day. As a result of this approval, the Company is currently allowed to borrow amounts such that its asset coverage ratio, as defined in the Investment Company Act, is at least 150% after such borrowing (if certain requirements are met). As of September 30, 2026 and December 31, 2025, the Company’s asset coverage ratio based on the aggregate amount outstanding of senior securities was 227% and 206%.

 

The Company's outstanding debt was as follows:

 

 

September 30, 2026

 

 

December 31, 2025

 

 

Aggregate
Borrowing
Amount
Committed

 

 

Amount
Available

 

 

Carrying
Value

 

 

Aggregate
Borrowing
Amount
Committed

 

 

Amount
Available

 

 

Carrying
Value

 

Credit Facility(1)

$

750,000

 

 

$

298,950

 

 

$

451,050

 

 

$

480,000

 

 

$

30,150

 

 

$

449,850

 

Total debt

$

750,000

 

 

$

298,950

 

 

$

451,050

 

 

$

480,000

 

 

$

30,150

 

 

$

449,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(1)
Provides, under certain circumstances, a total borrowing capacity of $1,000,000.


The weighted average interest rate of the aggregate borrowings outstanding for the nine months ended September 30, 2026 and for the year ended December 31, 2025 was 5.57% and 6.48%, respectively. The average debt of the aggregate borrowings outstanding for the nine months ended September 30, 2026 and for the year ended December 31, 2025 was $440,401 and $322,050, respectively.

Credit Facility

SPV entered into the Credit Facility on February 10, 2023 with Ally Bank (“Ally”) as administrative agent and collateral agent. State Street Bank and Trust Company serves as collateral custodian and securities intermediary. The Company serves as collateral manager under the Credit Facility.

Advances under the Credit Facility bear interest (at SPV’s election) at a per annum rate equal to either (x) Daily Simple SOFR (as defined in the Credit Facility) or (y) Term SOFR (as defined in the Credit Facility) with an Available Tenor (as defined in the Credit Facility) of either one month or three months. The applicable spread is 1.85% per annum. SPV paid a non-usage fee of 0.50% per annum for the first three months on the average daily unused amount of the financing commitments. Thereafter, SPV pays between 0.50% and 1.00% per annum, depending on the unused amount of the financing commitments, on the average daily unused amount of the financing commitments. On September 26, 2024, SPV entered into a second amendment to the Credit Facility (the "Second Amendment"). The Second Amendment, among other things, amended certain components of the Borrowing Base (as defined in the Credit Facility), resulting in an increase in the Borrowing Base. On December 20, 2024, SPV entered into a third amendment to the Credit Facility (the "Third Amendment"). The Third Amendment, among other things, extended the maturity date, decreased the applicable spread, increased the total commitments under the Credit Facility, and increased the accordion feature and amended certain components of the Borrowing Base (as defined in the Credit Facility), resulting in an increase in the Borrowing Base. On October 28, 2025, SPV entered into a fourth amendment (the “Fourth Amendment”) to the Credit Facility. The Fourth Amendment, among other things, decreased the Facility Amount (as defined in the Credit Facility) to $480.00 million, decreased the applicable spread, amended certain components of the Borrowing Base (as defined in the Credit Facility), resulting in an increase to the Borrowing Base and added the ability to borrow under a swingline sub-facility that is available on a same day basis. On January 16, 2026, SPV entered into a fifth amendment (the “Fifth Amendment”) to the Credit Facility. The Fifth Amendment, among other things, increased the Facility Amount to $750.00 million and amended certain components of the Borrowing Base (as defined in the Credit Facility), resulting in an increase to the Borrowing Base. On March 27, 2026, SPV entered into a sixth amendment (the “Sixth Amendment”) to the Credit Facility. The Sixth Amendment removed the spread adjustment applicable to advances bearing interest based on Term SOFR (as defined in the Credit Facility).

The Credit Facility is drawable in U.S. dollars. As of September 30, 2026, the total commitments under the Credit Facility were $750,000. The Credit Facility also has an accordion feature, subject to the satisfaction of various conditions, which could bring total commitments under the Credit Facility to $1,000,000. Proceeds from borrowings under the Credit Facility may be used to acquire portfolio loans by SPV, fund unfunded commitments of SPV with respect to loans, make distributions to the Company or pay related expenses. All amounts outstanding under the Credit Facility must be repaid by December 20, 2029.

SPV’s obligations to the lenders under the Credit Facility are secured by a first priority security interest in all of SPV’s portfolio of investments. The obligations of SPV under the Credit Facility are non-recourse to the Company, and the Company’s exposure under the Credit Facility is limited to the value of the Company’s investment in SPV.

In connection with the Credit Facility, SPV and the Company have made certain customary representations and warranties and are required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. The Credit Facility contains customary events of default for similar financing transactions, including if a change of control of SPV occurs or if the Company is no longer the collateral manager of SPV. Upon the occurrence and during the continuation of an event of default, Ally may declare the outstanding advances and all other obligations under the Credit Facility immediately due and payable. As of September 30, 2026, SPV and the Company were in compliance with these covenants.

Costs of $8,806 were incurred in connection with obtaining and amending the Credit Facility, which have been recorded as deferred financing costs in the Consolidated Statements of Financial Condition and are being amortized over the life of the Credit Facility using the straight-line method. As of September 30, 2026 and December 31, 2025, outstanding deferred financing costs were $4,878 and $4,727.
 

The following table presents summary information regarding the Credit Facility:

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30, 2026

 

 

September 30, 2025

 

 

September 30, 2026

 

 

September 30, 2025

 

Borrowing interest expense

 

$

6,381

 

 

$

5,560

 

 

$

18,362

 

 

$

14,824

 

Facility fees

 

 

479

 

 

 

284

 

 

 

1,397

 

 

 

1,066

 

Amortization of financing costs

 

 

381

 

 

 

299

 

 

$

1,119

 

 

 

892

 

Total

 

$

7,241

 

 

$

6,143

 

 

$

20,878

 

 

$

16,782

 

Weighted average interest rate

 

 

5.62

%

 

 

6.65

%

 

 

5.57

%

 

 

6.65

%

 Average outstanding balance

 

$

450,724

 

 

$

331,518

 

 

$

440,401

 

 

$

298,259