The proceeds of the loans under the Capital Call Facility may be used to acquire portfolio investments and such other uses as permitted under the Capital Call Facility. At the Company’s option, the Capital Call Facility will accrue interest at a rate per annum based on (i) a daily simple SOFR plus an applicable margin of 1.95% or (ii) the greatest of (1) the prime rate or (2) the federal funds effective rate plus 0.5% plus an applicable margin of 0.95%.
The maturity date is the earliest of: (a) December 28, 2023; (b) the date upon which the Administrative Agent declares the Company’s obligations under the Capital Call Facility (the “Obligations“) due and payable after the occurrence of an event of default under the Capital Call Facility; (c) 45 days prior to the termination of the Company’s Operative Documents (as defined in the Capital Call Facility); (d) 45 days prior to the date on which the Company’s ability to call capital commitments for the purpose of repaying the Obligations is terminated, and (e) the date upon which the Company terminates the commitments of the Lenders pursuant to Section 3.6 of the Capital Call Facility or otherwise.
The Capital Call Facility includes customary covenants as well as usual and customary events of default for revolving credit facilities of this nature.
As of June 30, 2023 and December 31, 2022, the carrying amount of the Company’s borrowings under the Capital Call Facility approximated its fair value. As of June 30, 2023, and December 31, 2022, unamortized financing costs of $225,407 and $439,000, respectively, are being deferred over the remaining term of the Capital Call Facility. As of June 30, 2023 and December 31, 2022, the Company had an outstanding balance of $99,000,000 and $5,000,000, respectively. The Capital Call Facility is presented in the Consolidated Statements of Assets and Liabilities net of unamortized financing costs, which results in an outstanding balance totaling $98,774,593 as of June 30, 2023 and $4,561,000 as of December 31, 2022. The following table shows additional information about the interest and financing costs related to the Capital Call Facility for the three and six months ended June 30, 2023 and 2022:
| | | | | | | | | | | | |
| | Three Months | | Six Months | | Three Months | | Six Months |
| | Ended | | Ended | | Ended | | Ended |
| | June 30, | | June 30, | | June 30, | | June 30, |
| | 2023 | | 2023 | | 2022 | | 2022 |
Interest expense related to the Capital Call Facility | | $ | 880,463 | | $ | 1,169,343 | | $ | 461,697 | | $ | 1,033,430 |
Financing expenses related to the Capital Call Facility | | | 116,402 | | | 225,545 | | | 139,540 | | | 275,145 |
Total interest and financing expenses related to the Capital Call Facility | | $ | 996,865 | | $ | 1,394,888 | | $ | 601,237 | | $ | 1,308,575 |
Revolving Credit Facility
On June 28, 2021, the SPV entered into a senior secured revolving credit facility (as amended, the “Revolving Credit Facility“) with JPMorgan Chase Bank, National Association (“JPM“). JPM serves as administrative agent and lender, U.S. Bank, National Association, serves as collateral agent, securities intermediary and collateral administrator, and Stone Point Credit Adviser LLC serves as portfolio manager under the Revolving Credit Facility.
Advances under the Revolving Credit Facility bear interest at a per annum rate equal to: (a) for advances denominated in USD, the three-month LIBOR, (b) for advances denominated in CAD, the average rate applicable to CAD bankers’ acceptances for a three-month period, (c) for advances denominated in GBP, the daily simple Sterling Overnight Index Average for each day, (d) for advances denominated in AUD, the three-month average bid reference rate administered by the Australian Financial Markets Association for Australian dollar bills, and (e) for advances denominated in Euros, the three-month Euro interbank offered rate, in each case, in effect, plus the applicable margin of 2.45% per annum (or, for advances denominated in GBP, 2.5693% per annum). The SPV paid and will pay, as applicable, a commitment fee of (x) initially, to but excluding September 28, 2021, 0.25% per annum, (y) from and including September 28, 2021 to but excluding the first anniversary of the Revolving Credit Facility, 0.50% per annum, and (z) from and including the first anniversary of the Revolving Credit Facility, 0.60% per annum, in each case, on the average daily unused amount of the financing commitments until the third anniversary of the Revolving Credit Facility.
On October 15, 2021, the SPV executed a letter agreement (the “Amendment“) to amend the Revolving Credit Facility. The Amendment increases the maximum borrowing capacity of the SPV under the Revolving Credit Facility between the SPV and JPM to $500 million from $250 million in accordance with the accordion feature in the Revolving Credit Facility that allows the SPV, under certain circumstances, to increase the size of the Revolving Credit Facility to an amount not to exceed $750 million in aggregate. The other material terms of the Revolving Credit Facility were unchanged. All amounts outstanding under the Revolving Credit Facility must be repaid by June 28, 2026.
