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Kayne Anderson BDC (NYSE: KBDC) has announced significant amendments to its senior secured revolving credit facility. The changes include extending the maturity date to November 22, 2029 for $400 million of commitments, with an additional $75 million maturing on February 18, 2027. The facility’s interest rates have been reduced, with Term SOFR loans decreasing from 2.35% to 2.10% and ABR loans from 1.25% to 1.00%. The facility maintains potential expansion capability to $600 million under certain conditions.
Kayne Anderson BDC (NYSE: KBDC) ha annunciato importanti modifiche al suo credito revolving garantito senior. Le modifiche includono l’estensione della data di scadenza al 22 novembre 2029 per 400 milioni di dollari di impegni, con ulteriori 75 milioni in scadenza il 18 febbraio 2027. I tassi di interesse del credito sono stati ridotti, con i prestiti Term SOFR che scendono dal 2,35% al 2,10% e i prestiti ABR dall’1,25% all’1,00%. La struttura mantiene una potenziale capacità di espansione fino a 600 milioni di dollari a determinate condizioni.
Kayne Anderson BDC (NYSE: KBDC) ha anunciado enmiendas significativas a su línea de crédito rotativo asegurado senior. Los cambios incluyen la extensión de la fecha de vencimiento al 22 de noviembre de 2029 para compromisos de 400 millones de dólares, con 75 millones adicionales que vencen el 18 de febrero de 2027. Las tasas de interés de la instalación se han reducido, con préstamos Term SOFR disminuyendo del 2.35% al 2.10% y préstamos ABR del 1.25% al 1.00%. La instalación mantiene la capacidad de expansión potencial a 600 millones de dólares bajo ciertas condiciones.
케인 앤더슨 BDC (NYSE: KBDC)가 시니어 담보 회전 신용 시설에 대한 중요한 수정 사항을 발표했습니다. 변경 사항에는 2029년 11월 22일로 만기일을 연장하는 약 4억 달러의 약정이 포함되어 있으며, 추가로 7,500만 달러는 2027년 2월 18일에 만기가 됩니다. 이 시설의 이자율은 감소하였으며, Term SOFR 대출은 2.35%에서 2.10%로, ABR 대출은 1.25%에서 1.00%로 각각 줄어들었습니다. 이 시설은 특정 조건에서 6억 달러로 확장할 수 있는 가능성을 유지합니다.
Kayne Anderson BDC (NYSE: KBDC) a annoncé des modifications significatives à sa ligne de crédit revolving garantis senior. Les changements incluent le report de la date d’échéance au 22 novembre 2029 pour 400 millions de dollars d’engagements, avec un montant supplémentaire de 75 millions de dollars échouant le 18 février 2027. Les taux d’intérêt de la facilité ont été réduits, avec les prêts Term SOFR passant de 2,35 % à 2,10 % et les prêts ABR de 1,25 % à 1,00 %. La facilité conserve une capacité d’expansion potentielle jusqu’à 600 millions de dollars sous certaines conditions.
Kayne Anderson BDC (NYSE: KBDC) hat bedeutende Änderungen an seiner vorrangigen besicherten revolvierenden Kreditfazilität angekündigt. Zu den Änderungen gehört die Verlängerung des Fälligkeitsdatums auf den 22. November 2029 für 400 Millionen Dollar an Verpflichtungen, zusätzlich verfallen 75 Millionen Dollar am 18. Februar 2027. Die Zinssätze der Fazilität wurden gesenkt, wobei die Term SOFR-Darlehen von 2,35 % auf 2,10 % und die ABR-Darlehen von 1,25 % auf 1,00 % gesenkt wurden. Die Fazilität behält das Potenzial zur Erweiterung auf 600 Millionen Dollar unter bestimmten Bedingungen.
Positive
- Extended maturity date to 2029 for $400M credit facility
- Reduced borrowing costs: Term SOFR loans from 2.35% to 2.10%
- Reduced borrowing costs: ABR loans from 1.25% to 1.00%
- Added new lender and $75M in additional commitments
- Potential to increase facility size to $600M
Insights
The amendment of KBDC’s corporate credit facility represents a significant positive development for the Business Development Company. The $400 million facility extension to 2029 provides enhanced financial flexibility and stability. The reduction in borrowing costs – 0.25% for Term SOFR loans and 0.25% for ABR loans – will directly improve the company’s interest expense profile and net investment income potential.
The facility’s expansion capability to $600 million offers substantial growth runway, while the addition of a new lender strengthens KBDC’s banking relationships. For BDCs, favorable credit facility terms are important as they impact lending spreads and overall profitability. This amendment enhances KBDC’s competitive position in the middle-market lending space and should support sustainable dividend coverage.
CHICAGO–(BUSINESS WIRE)– Kayne Anderson BDC, Inc. (NYSE: KBDC) (“KBDC”) (the “Company”) announced the amendment of its senior secured revolving credit facility (the “Corporate Credit Facility”). The amendment added a new lender and extended the maturity date on the existing $400 million of aggregate commitments to November 22, 2029. An additional commitment of $75 million has a maturity date of February 18, 2027. The Corporate Credit Facility allows the Company, under certain circumstances, to increase the overall size to a maximum of $600 million. The amendment also reduced the interest rate on the $400 million commitment from 2.35% to 2.10% for any Term Secured Overnight Funding Rate (“Term SOFR”) loans and from 1.25% to 1.00% for any Alternative Base Rate (“ABR”) loans.
About Kayne Anderson BDC, Inc.
Kayne Anderson BDC, Inc. is a business development company (“BDC”) that invests primarily in first lien senior secured loans, with a secondary focus on unitranche and split-lien loans to middle market companies. KBDC is externally managed by its investment adviser, KA Credit Advisors, LLC, an indirect controlled subsidiary of Kayne Anderson Capital Advisors, L.P., a prominent alternative investment management firm. KBDC has elected to be regulated as a BDC under the Investment Company Act of 1940, as amended (“1940 Act”). KBDC’s investment objective is to generate current income and, to a lesser extent, capital appreciation. For more information, please visit www.kaynebdc.com.
Forward-looking Statements
This press release may contain “forward-looking statements” that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about KBDC, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond KBDC’s control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in KBDC’s filings with the SEC. All forward-looking statements speak only as of the date of this press release. KBDC does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241125415481/en/
Investor Relations
Source: Kayne Anderson BDC, Inc.
FAQ
What are the new interest rates for KBDC’s credit facility after the November 2023 amendment?
The new interest rates are 2.10% for Term SOFR loans (reduced from 2.35%) and 1.00% for ABR loans (reduced from 1.25%).
When is the new maturity date for KBDC’s $400M credit facility?
The maturity date for the $400 million commitment has been extended to November 22, 2029.
What is the maximum potential size of KBDC’s amended credit facility?
Under certain circumstances, the credit facility can be increased to a maximum of $600 million.
