AG Twin Brook Capital Income enters up to $300 million revolver

By Wendy Van Sickle

Columbus, Ohio, Nov. 22 – AG Twin Brook Capital Income Fund entered into a new senior secured credit agreement with Truist Bank as administrative agent on Nov. 17 that provides for a revolving loan facility with an initial maximum amount of $300 million, subject to a borrowing base that consists primarily of commercial loans originated by the company, according to an 8-K filing with the Securities and Exchange Commission.

The company may seek additional commitments from new and existing lenders in the future, up to a maximum total facility size of $700 million. The company may prepay any class of loans and/or terminate or reduce the revolving commitments of any class under the credit facility at any time without penalty.

The obligation of the lenders to make loans under the credit facility will terminate on Nov. 17, 2027, and the loan facility is scheduled to mature on Nov. 17, 2028.

The revolving loans will bear interest at adjusted term SOFR plus 200 basis points.

The credit facility is guaranteed by Twin Brook Capital Funding XXXIII, LLC, a direct and wholly owned subsidiary of the company, and will be guaranteed by certain domestic subsidiaries of the company that are formed or acquired by the company in the future. The revolver is secured by all assets of the company and the Guarantor.

Financial covenants include a minimum shareholders’ equity and net worth; a 150% asset coverage ratio; a liquidity reserve of 10% of the company’s unfunded loan commitments; and a liquidity test.

The New York-based non-traded BDC seeks to make private credit opportunities in the lower middle market accessible to individual investors via TPG Angelo Gordon’s middle-market direct lending business, Twin Brook Capital Partners.

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