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

NOTE 5 —DEBT

Revolving Line of Credit

On February 11, 2025, the Company entered into a senior secured revolving credit agreement (the “Credit Agreement”, or the "Revolving Line of Credit") by and among the Company, as borrower, Western Alliance Trust Company, N.A. (“WATC”), as administrative agent, Western Alliance Bank, as an issuing bank and as the initial lender, and the other lenders party thereto from time to time.

Under the Credit Agreement, the lenders have agreed to extend credit to the Company on a revolving basis in an initial aggregate amount of up to $100,000,000 with an option for the Company to request additional commitments, in a minimum amount of $5,000,000, at one or more times from existing and/or new lenders. The Credit Agreement also provides for the issuance of letters of credit in an aggregate face amount of up to $5,000,000.

Availability under the Credit Agreement (the “Revolving Period”) will terminate on February 11, 2027, and the Credit Agreement has a scheduled maturity date of March 31, 2028.

Borrowings under the Credit Agreement bear interest at one-month term SOFR plus 3.00%, subject to a minimum all-in interest rate of 6.00%. As of September 30, 2026 and December 31, 2025, the stated interest rate on borrowings was 6.90% and 6.72%, respectively. The Company pays a commitment fee of 0.50% per annum on the average daily unused portion of commitments under the Credit Agreement during the Revolving Period. For the three months ended September 30, 2026 and 2025, the Company recorded $52,903 and $125,465, respectively, of commitment fees which are included in interest expense on the Statements of Operations. The Company will also be required to pay letter of credit participation fees and a fronting fee on the average daily amount of the lenders’ exposure with respect to any letters of credit issued at the request of the Company under the Credit Agreement.

The Company incurred $1,654,310 of financing costs in connection with the Revolving Line of Credit. As of September 30, 2026 and December 31, 2025, $495,346 and $525,324, respectively, of deferred financing costs were included in prepaid expenses and other assets on the Statements of Assets and Liabilities. For the three months ended September 30, 2026 and 2025, $178,601 and $177,966, respectively, of such costs were amortized and included in interest expense on the Statements of Operations.

As of September 30, 2026, the Company had $91,000,000 in outstanding borrowings and $9,000,000 available under the Revolving Line of Credit. As of December 31, 2025, the Company had $25,000,000 in outstanding borrowings and $75,000,000 available under the Revolving Line of Credit. The Revolving Line of Credit includes customary affirmative and negative covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature. The Company was in compliance with all material covenants as of September 30, 2026. The Revolving Line of Credit is secured by all of the Company's assets pledged as collateral.

The fair value of the Revolving Line of Credit is equal to its carrying value because the revolver is a floating rate facility that reprices to a market rate frequently. The fair value is categorized as Level 2 under ASC 820.

The following table presents the components of interest expense for the following periods:

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

September 30, 2026

 

 

September 30, 2025

 

 

September 30, 2026

 

 

September 30, 2025

 

Commitment fee

 

$

52,903

 

 

$

125,465

 

 

$

188,945

 

 

 

318,243

 

Amortization of deferred financing costs

 

 

178,601

 

 

 

177,966

 

 

 

529,978

 

 

 

426,745

 

Interest expense

 

 

1,016,581

 

 

 

35,084

 

 

 

2,554,643

 

 

 

40,168

 

Total interest expense

 

$

1,248,085

 

 

$

338,515

 

 

$

3,273,566

 

 

 

785,156

 

Average interest rate

 

 

6.71

%

 

 

7.33

%

 

 

6.68

%

 

 

7.33

%

Average daily borrowings

 

$

59,293,478

 

 

$

1,875,000

 

 

$

50,410,256

 

 

 

723,443

 

Senior Securities

 

Information about our senior securities is shown in the following table as of September 30, 2026:

Class and Period

 

Total Amount Outstanding Exclusive of Treasury Securities(1)

 

 

Asset Coverage Per Unit(2)

 

 

Involuntary Liquidating Preference Per Unit(3)

 

 

Average Market Value Per Unit(4)

Revolving Credit Facility

 

 

 

 

 

 

 

 

 

 

 

September 30, 2026

 

$

91,000,000

 

 

$

4,327

 

 

 

-

 

 

N/A

June 30, 2026

 

$

27,000,000

 

 

$

12,203

 

 

 

-

 

 

N/A

March 31, 2026

 

$

54,500,000

 

 

$

6,581

 

 

 

-

 

 

N/A

December 31, 2025

 

$

25,000,000

 

 

$

13,136

 

 

 

-

 

 

N/A

 

(1) Total amount of each class of senior securities outstanding at the end of the period presented.

(2) Asset coverage per unit is the ratio of the carrying value of our total assets, less all liabilities excluding indebtedness represented by senior securities in this table, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness and is calculated on a consolidated basis.

(3) The amount to which such class of senior security would be entitled upon our involuntary liquidation in preference to any security junior to it. The “-” in this column indicates information that the SEC expressly does not require to be disclosed for certain types of senior securities.

(4) Not applicable because the senior securities are not registered for public trading.