Debt |
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| 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”, 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 the annual rate of one-month term plus 3.00%, subject to a minimum interest rate of 6.00%. The Company will pay 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 and nine months ended September 30, 2025, the company recorded $125,465 and $318,243, 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 $1,154,310 of financing costs in connection with the origination of the Revolving Line of Credit. As of September 30, 2025, the balance of $727,566 of deferred financing costs was included in prepaid expenses and other assets on the Statements of Assets and Liabilities. For the three and nine months ended September 30, 2025, $177,966 and $426,745 respectively, of such costs were amortized and included in interest expense on the Statements of Operations. As of September 30, 2025, the Company had $11,000,000 in outstanding borrowings and $89,000,000 available under the Revolving Line of Credit. Additionally, as of September 30, 2025, $192.5 million of loans held for investment, at principal, were pledged as collateral in the borrowing base of the Revolving Loan. 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:
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