Debt

6 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

6. Debt

In accordance with the 1940 Act, with certain limitations, the Company is allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, is at least 150% after such borrowing. As of September 30, 2022 was 182.6%.

Debt obligations consisted of the following as of September 30, 2022:

	September 30, 2022
	Aggregate Principal Amount Committed		Outstanding Principal		Amount Available (1)		Carrying Value (2)
Revolving Credit Facility	$	400,000	$	217,197	$	182,803	$	214,704
Total Debt	$	400,000	$	217,197	$	182,803	$	214,704

(1)The amount available may be subject to limitations related to the borrowing base under the Revolving Credit Facility and asset coverage requirements.

(2)The carrying value of the Revolving Credit Facility is presented net deferred financing costs of $2.5 million.

For the three months ended September 30, 2022, the components of interest expense were as follows:

	Three Months Ended
	September 30, 2022
Interest expense	$	225
Commitment fees		72
Amortization of deferred financing costs		103
Total Interest Expense	$	400
Average debt outstanding (in millions) (1)	$	71.2
Weighted average interest rate (1)		5.0	%

(1)Average debt outstanding and weighted average interest rate were computed from the initial drawdown on the Revolving Credit Facility, September 8, 2022.

Revolving Credit Facility

On September 1, 2022 (the "Closing Date"), the Company entered into a revolving credit agreement (the “Revolving Credit Facility”) with Wells Fargo Bank, National Association, as administrative agent (the "Administrative Agent"), letter of credit issuer, lead arranger and as a lender.

The maximum principal amount of the Revolving Credit Facility is $400 million, subject to availability under the borrowing base, which is based on unfunded capital commitments. The Revolving Credit Facility includes a provision permitting the Company to increase the size of the Revolving Credit Facility under certain circumstances up to a maximum principal amount not to exceed $1.5 billion, if the existing or new lenders agree to commit to such increase.

The Revolving Credit Facility will mature upon the earliest of: (i) August 30, 2024 (the "Stated Maturity"); (ii) the date upon which the Administrative Agent declares the obligations under the Revolving Credit Facility due and payable after the occurrence of an event of default; (iii) forty-five (45) days prior to the date on which the Company’s ability to call capital commitments for purposes of repaying the obligations under the Revolving Credit Facility is terminated; and (iv) the date the Company terminates the commitments pursuant to the Revolving Credit Facility. At the Company’s option, the Stated Maturity Date may be extended by up 364 days, subject to satisfaction of customary conditions.

Borrowings under the Revolving Credit Facility bear interest, at the Company’s election at the time of drawdown, at a rate per annum equal to (i) in the case of loans denominated in dollars, at the Company’s option (a) an adjusted Daily Simple SOFR rate plus 1.70%, (b) an adjusted Term SOFR rate for the applicable interest period plus 1.70% and (c) in the case of reference rate loans, 0.70% plus the greatest of (1) a prime rate, (2) the federal funds rate plus 0.50% and (3) the adjusted Daily Simple SOFR plus 1.00%, (ii) in the case of loans denominated in euros or other alternative currencies (other than sterling), the adjusted Eurocurrency Rate for the applicable interest period plus 1.70% or (iii) in the case of loans denominated in sterling, the adjusted SONIA rate plus 1.70%. SOFR loans are subject to a credit spread adjustment ranging from 0.10% to 0.25% and SONIA loans are subject to a credit spread adjustment of 0.0326%. Loans denominated in dollars may be converted from one rate applicable to dollar denominated loans to another at any time at the Company’s election, subject to certain conditions. The Company also will pay an unused commitment fee of 0.25% per annum on the unused commitments.

The Company may borrow amounts in U.S. dollars or certain other permitted currencies. As of September 30, 2022, the Company had outstanding debt denominated in British pounds (GBP) of 3.2 million and Euro (EUR) of 3.7 million on its Revolving Credit Facility, included in the Outstanding Principal amount in the table above.

The Revolving Credit Facility also provides for the issuance of letters of credit up to an aggregate amount of 10% of the Maximum Commitment. As of September 30, 2022, the Company had no outstanding letters of credit issued through the Revolving Credit Facility. The amount available for borrowing under the Revolving Credit Facility is reduced by any letters of credit issued through the Revolving Credit Facility.

The Revolving Credit Facility includes customary events of default (with customary cure and notice provisions)