Borrowings

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Borrowings

7.Borrowings

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 June 30, 2024, the Company did not have any borrowings outstanding.

The Company's outstanding debt obligations as of June 30, 2024 were as follows:

	June 30, 2024
($ in thousands)	Aggregate Principal		Outstanding		Net Carrying		Unused
	Committed		Principal		Value		Portion(1)
MS Revolving Credit Facility	$	300,000	$	—	$	—	$	300,000

(1)The unused portion is the amount upon which unused fees are based, if any.

The components of interest expense for the three and six months ended June 30, 2024 were as follows:

($ in thousands)	For the Three Months Ended June 30, 2024			For the Six Months Ended June 30, 2024
Stated interest expense	$	—		$	—
Unused/undrawn fees		379			379
Amortization of debt issuance costs		287			287
Administration fees		113			113
Total Interest Expense	$	779		$	779
Average interest rate		1.03	%		1.03	%
Average daily borrowings	$	—		$	—

MS Revolving Credit Facility

On February 22, 2024, Overland Financing MS, LLC, a wholly-owned financing subsidiary of the Company, entered into a senior secured revolving credit facility (the “MS Revolving Credit Facility”) with Morgan Stanley Senior Funding Inc. (“MS”). MS serves as the administrative agent, Wilmington Trust, National Association, serves as collateral agent, account bank and collateral custodian and the Company serves as a servicer under the MS Revolving Credit Facility. On June 6, 2024, certain terms, including the applicable margins, in the MS Revolving Credit Facility were amended. Such amendment is filed as Exhibit 10.1 to this quarterly report on Form 10-Q.

Under the MS Revolving Credit Facility, MS has agreed to make available to Overland Financing MS, LLC, a revolving loan facility in the maximum principal amount of up to $300 million.

The initial commitment amount under the MS Revolving Credit Facility will remain undrawn until the earlier of (i) the day following the date that the investors in the Company have fully funded the first capital call made by the Company and (ii) April 1, 2024. As of June 30, 2024, no amounts had been drawn under the MS Revolving Credit Facility.

Advances under the MS Revolving Credit Facility will initially bear interest at a per annum rate equal to an applicable benchmark (which is initially the forward-looking term rate based on the Secured Overnight Financing Rate (“SOFR”), for a tenor of three (3) months, as such rate is published by the CME Group Benchmark Administration Limited (CBA)), plus an applicable margin. As amended on June 6, 2024, the applicable margin on advances is (i) for the first six (6) months after February 22, 2024, 1.70% per annum, (ii) after the six (6) month anniversary of February 22, 2024, for the next three (3) months, 2.10% per annum, (iii) after the nine (9) month anniversary of February 22, 2024 and during the revolving period, which is scheduled to end three years after February 22, 2024, 2.35% per annum, and (iv) after the end of the revolving period, 2.85% per annum.

The period during which Overland Financing MS, LLC may make borrowings under the MS Revolving Credit Facility expires on February 22, 2027 and the MS Revolving Credit Facility is scheduled to mature on February 22, 2029.

As of June 30, 2024, the Company had recorded $3,328 of deferred financing costs in connection with the MS Revolving Credit Facility.