Chicago Atlantic BDC, Inc. Announces the Closing of a New $100 Million Senior Secured Revolving Credit Facility
Chicago Atlantic BDC (NASDAQ: LIEN) has secured a new $100 million senior secured revolving credit facility maturing in March 2028, with an interest rate of SOFR plus 3.00%. The company, which currently has no debt outstanding, plans to use this facility to fund portfolio growth and capitalize on lending opportunities.
The company recently announced a 36% increase in quarterly dividend to $0.34 per share for Q4 2024, up from $0.25 in Q3 2024. As of October 1, 2024, the investment portfolio features include 100% senior-secured loans, no non-accrual positions, and a 17.2% gross weighted-average yield of debt investments. The portfolio demonstrates strong metrics with a weighted average Sr. Secured Net Debt/EBITDA of 1.6x and weighted average interest coverage of 4.1x.
Chicago Atlantic BDC (NASDAQ: LIEN) ha ottenuto un nuovo prestito revolving garantito senior da 100 milioni di dollari che scade a marzo 2028, con un tasso d'interesse di SOFR più 3,00%. L'azienda, che attualmente non ha debiti in sospeso, prevede di utilizzare questa linea di credito per finanziare la crescita del portafoglio e sfruttare le opportunità di prestito.
L'azienda ha recentemente annunciato un aumento del 36% del dividendo trimestrale a 0,34 dollari per azione per il quarto trimestre del 2024, rispetto ai 0,25 dollari del terzo trimestre del 2024. A partire dal 1° ottobre 2024, il portafoglio di investimenti include prestiti garantiti al 100%, nessuna posizione in non maturazione, e un rendimento medio ponderato lordo del 17,2% sugli investimenti in debito. Il portafoglio mostra metriche solide con un rapporto medio ponderato di Debito Netto Garantito/EBITDA di 1,6x e un rapporto medio ponderato di copertura degli interessi di 4,1x.
Chicago Atlantic BDC (NASDAQ: LIEN) ha obtenido una nueva línea de crédito revolving garantizada senior de 100 millones de dólares que vence en marzo de 2028, con una tasa de interés de SOFR más 3,00%. La compañía, que actualmente no tiene deudas pendientes, planea utilizar esta línea de crédito para financiar el crecimiento de su cartera y aprovechar las oportunidades de préstamos.
Recientemente, la compañía anunció un aumento del 36% en el dividendo trimestral a 0,34 dólares por acción para el cuarto trimestre de 2024, frente a los 0,25 dólares del tercer trimestre de 2024. A partir del 1 de octubre de 2024, el portafolio de inversiones incluye préstamos garantizados al 100%, sin posiciones en mora, y un rendimiento bruto promedio ponderado del 17,2% en inversiones de deuda. El portafolio muestra métricas sólidas con una relación promedio ponderada de Deuda Neta Garantizada/EBITDA de 1,6x y una cobertura de intereses promedio ponderada de 4,1x.
시카고 애틀랜틱 BDC (NASDAQ: LIEN)는 1억 달러 규모의 선순위 담보 회전 신용 시설을 확보하였으며, 이는 2028년 3월 만료됩니다. 금리는 SOFR에 3.00%가 더해진 것입니다. 현재 부채가 없는 이 회사는 이 시설을 사용하여 포트폴리오 성장을 지원하고 대출 기회를 활용할 계획입니다.
회사는 최근 분기 배당금을 36% 인상하여 2024년 4분기 주당 0.34달러로 결정하였으며, 이는 2024년 3분기의 0.25달러에서 증가한 것입니다. 2024년 10월 1일 기준으로 투자 포트폴리오에는 100% 선순위 담보 대출, 연체 포지션 없음, 그리고 17.2%의 총 가중 평균 수익률이 포함되어 있습니다. 이 포트폴리오는 1.6배의 가중 평균 선순위 담보 순부채/EBITDA 비율과 4.1배의 가중 평균 이자 보상 비율을 보여줍니다.
Chicago Atlantic BDC (NASDAQ: LIEN) a sécurisé une nouvelle facilité de crédit revolving senior garantie de 100 millions de dollars arrivant à échéance en mars 2028, avec un taux d'intérêt de SOFR plus 3,00%. L'entreprise, qui n'a actuellement aucune dette en cours, prévoit d'utiliser cette facilité pour financer la croissance de son portefeuille et capitaliser sur les opportunités de prêt.
L'entreprise a récemment annoncé une augmentation de 36% du dividende trimestriel à 0,34 dollar par action pour le quatrième trimestre 2024, contre 0,25 dollar au troisième trimestre 2024. À partir du 1er octobre 2024, le portefeuille d'investissement comprend 100% de prêts senior garantis, aucune position en défaut et un rendement brut moyen pondéré de 17,2% sur les investissements en dette. Le portefeuille présente des indicateurs solides avec un ratio moyen pondéré de Dette Nette Senior Garanties/EBITDA de 1,6x et un ratio moyen pondéré de couverture des intérêts de 4,1x.
Chicago Atlantic BDC (NASDAQ: LIEN) hat eine neue senior gesicherte revolvierende Kreditfazilität über 100 Millionen Dollar gesichert, die im März 2028 fällig wird, mit einem Zinssatz von SOFR plus 3,00%. Das Unternehmen, das derzeit keine ausstehenden Schulden hat, plant, diese Fazilität zur Finanzierung des Portfoliowachstums und zur Nutzung von Kreditmöglichkeiten zu verwenden.
Das Unternehmen hat kürzlich eine 36%ige Erhöhung der vierteljährlichen Dividende auf 0,34 Dollar pro Aktie für das 4. Quartal 2024 angekündigt, verglichen mit 0,25 Dollar im 3. Quartal 2024. Ab dem 1. Oktober 2024 umfasst das Investitionsportfolio 100% senior gesicherte Darlehen, keine überfälligen Positionen und eine Brutto-Durchschnittsrendite von 17,2% auf Schuldeninvestitionen. Das Portfolio zeigt starke Kennzahlen mit einem gewichteten durchschnittlichen Verhältnis von Senior Secured Net Debt/EBITDA von 1,6x und einer gewichteten durchschnittlichen Zinsdeckungsquote von 4,1x.
- Secured new $100M credit facility with favorable terms
- 36% increase in quarterly dividend (Q4 2024)
- Strong portfolio metrics with 17.2% gross weighted-average yield
- 100% senior-secured loans with no non-accrual positions
- Conservative leverage profile with currently no debt outstanding
- None.
Insights
The securing of a
The company's portfolio metrics reveal a conservative yet profitable approach to lending:
- The
17.2% gross weighted-average yield on debt investments demonstrates strong return potential while maintaining disciplined risk management - The portfolio's weighted average Senior Secured Net Debt to EBITDA ratio of 1.6x is notably conservative compared to typical BDC leverage levels of 2.5-3.5x
- The
4.1x interest coverage ratio provides a substantial cushion against potential borrower distress
The
The recent
The new Credit Facility provides significant liquidity and flexibility to fund future portfolio growth
NEW YORK, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Chicago Atlantic BDC, Inc. (the “Company”) (NASDAQ: LIEN), a specialty finance company that has elected to be regulated as a business development company (“BDC”), today announced that the Company has closed a new
Scott Gordon, Executive Chairman and Co-Chief Investment Officer of the Company, commented, “We are pleased to close this new Credit Facility and secure an attractive source of additional capital from an industry-leading banking partner. With no current debt outstanding, the Credit Facility provides us with significant liquidity and the flexibility to grow the Company’s portfolio as we seek to capitalize on the robust lending opportunities in the originations pipeline. We will continue to add investments to the portfolio in a disciplined manner and will take a prudent approach to balance sheet management, with a more conservative leverage profile than that of other BDCs.”
The closing of the Credit Facility marks another recent milestone in the development of the Company, following the Company’s announcement in December of a dividend of
Chicago Atlantic BDC, Inc. is the only publicly traded BDC primarily focused on the U.S. cannabis industry and also seeks to capitalize on opportunities in other niche or esoteric situations that are typically underserved by traditional sources of capital, with the goal of investing in uncorrelated, idiosyncratic credit opportunities with attractive risk adjusted returns.
Investment portfolio highlights as of October 1, 2024:
100% senior-secured loans- No positions classified as non-accrual
17.2% gross weighted-average yield of debt investments(1)79% of the portfolio (% of debt investments fair value) is floating rate loans, and99% of such loans (% of debt investments fair value) have floors- Attractive portfolio company credit metrics: (2)
- Weighted average Sr. Secured Net Debt / EBITDA of 1.6x
- Weighted average interest coverage of 4.1x
- Median revenue and EBITDA of
$85m m and$19m m, respectively
Chicago Atlantic BDC Advisers, LLC (the “Adviser”) aims to develop a market-leading BDC lending platform focused on delivering alpha through uncorrelated, idiosyncratic credit opportunities in cannabis and other niche or esoteric opportunities where few capital providers with requisite expertise are present. The Company leverages and builds upon the same expertise that has supported the track records of the Company’s affiliated lending vehicle Chicago Atlantic Real Estate Finance Inc. (NASDAQ: REFI) and private funds managed by affiliates of the Adviser.
(1) Weighted Average Portfolio Yield on Debt Investments (“Portfolio Yield”) is the weighted average of the annualized yield for each debt investment in the portfolio weighted by the fair value of each debt investment as of 9/30/24 for the Company and 9/28/24 for the portfolio of loans that the Company acquired from Chicago Atlantic Loan Portfolio, LLC (the “Reference Date”). The yield for each debt investment is calculated by dividing (a) the sum of (i) the stated annual cash interest rate of the debt investment as of the Reference Date, (ii) the stated annual payment-in-kind interest rate, if any, of the debt investment as of the Reference Date, (iii) the difference between the par value and the fair value of the debt investment, expressed as a percentage of the par value of the debt investment, and annualized based on the remaining term of the debt investment as of the Reference Date, and (iv) the exit fee of the debt investment, if any, expressed as a percentage of the par value of the debt investment and annualized based on the remaining term of the debt investment as of the Reference Date, by (b) the fair value of the debt investment, expressed as a percentage of the par value of the debt investment. The Portfolio Yield calculation does not reflect any prepayment penalties or early payoffs with respect to the debt investments. The Portfolio Yield is gross of expenses and excludes cash and equity holdings. The Portfolio Yield would be lower if the calculation reflected expenses and cash holdings. The Portfolio Yield does not represent actual investment returns to the Company’s stockholders and the Company may not actually realize the foregoing yield of any specific debt investment, including if the remaining term of the debt investment is less than a year.
(2) Amounts were derived from the most recently available portfolio company financial statements, as of October 1, 2024, have not been independently verified by the Company, and may reflect a normalized or adjusted amount. Accordingly, the Company makes no representation or warranty in respect of this information.
About Chicago Atlantic BDC, Inc.
The Company is a specialty finance company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended, and has elected to be treated as a regulated investment company for U.S. federal income tax purposes. The Company’s investment objective is to maximize risk-adjusted returns on equity for its stockholders by investing primarily in direct loans to privately held middle-market companies, with a primary focus on cannabis companies. The Company is managed by Chicago Atlantic BDC Advisers, LLC, an investment manager focused on the cannabis industry and other niche or underfollowed sectors. For more information, please visit lien.chicagoatlantic.com.
Forward-Looking Statements
Certain information contained herein may constitute “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 the Company, 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 the Company’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 the Company’s filings with the Securities and Exchange Commission. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which the Company makes them. The Company 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.
Contact:
Tripp Sullivan
SCR Partners
LIEN@chicagoatlantic.com
FAQ
What are the terms of LIEN's new $100M credit facility announced in February 2025?
How much did LIEN increase its dividend in Q4 2024?
What is the weighted-average yield of LIEN's debt investments as of October 2024?
What are the key portfolio metrics for LIEN as of October 2024?
What percentage of LIEN's portfolio consists of floating rate loans?
