Kayne Anderson BDC, Inc. announced the amendment of its senior secured revolving credit facility, known as the Corporate Credit Facility. The amendment extended the maturity date on the existing $400 million of aggregate commitments to November 22, 2029. An additional commitment of $75 million was added, with a maturity date of February 18, 2027.
The amendment also resulted in a reduction of the interest rate on the $400 million commitment. The rate for Term Secured Overnight Funding Rate (Term SOFR) loans decreased from 2.35% to 2.10%, and for Alternative Base Rate (ABR) loans, it decreased from 1.25% to 1.00%. These reduced borrowing costs are expected to enhance financial flexibility and benefit net investment income.
The Corporate Credit Facility now allows the company to increase its overall size to a maximum of $600 million under certain circumstances. This increased capacity and extended maturities provide KBDC with enhanced liquidity and a more favorable funding structure for future investment activities.
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