AB 2020 Form 10-K

For the years ended December 31, 2020 and December 31, 2019, the components of interest expense related to the HSBC Credit Facility were as follows: For the Year Ended December 31, 2020 2019 Interest and borrowing expenses $ 656,225 $ 462,600 Unused facility fee 81,404 162,683 Amortization of deferred financing costs and upfront commitment fees 86,270 210,025 Total interest and borrowing expenses $ 823,899 $ 835,308 Barclays Credit Facility On December 19, 2018, the Fund formed ABPCIC Funding, an indirectly wholly-owned Delaware limited liability company, the primary purpose of which was to function as the Fund’s special purpose, bankruptcy remote, financing subsidiary in connection with the Barclays Credit Agreement, providing for borrowings in an aggregate amount up to $150,000,000 collateralized with certain assets sold to ABPCIC Funding by the Fund (the “Collateral”). The Fund was appointed as the Designated Manager of ABPCIC Funding and as such had full and exclusive control of ABPCIC Funding’s business and makes all decisions affecting its affairs (except with respect to certain material actions). On January 30, 2019, ABPCIC Funding entered into the Barclays Credit Agreement. Concurrently with the closing of the Barclays Credit Agreement, the Fund contributed and/or sold certain assets to ABPCIC Funding pursuant to a transfer agreement (the “Barclays Transfer Agreement”), by and between the Fund as seller and ABPCIC Funding as buyer. The Fund expected to continue to contribute and/or sell assets to ABPCIC Funding pursuant to the Barclays Transfer Agreement in the future. All of the collateral pledged to lenders by ABPCIC Funding under the Barclays Credit Facility was held in the custody of the Barclays Custodian under an account control agreement by and among ABPCIC Funding, the Barclays Collateral Agent and the Barclays Custodian. The Barclays Collateral Administrator maintained and performed certain collateral administration services with respect to the collateral pursuant to a collateral administration agreement among ABPCIC Funding, the Adviser and the Barclays Collateral Administrator. Borrowings under the Barclays Credit Facility were secured by all of the assets held by ABPCIC Funding. Pursuant to a collateral management agreement (the “Barclays Collateral Management Agreement”) by and between ABPCIC Funding and the Adviser as collateral manager, the Adviser performed certain duties with respect to the purchase and management of the assets securing the Barclays Credit Facility. The Adviser elected to waive any fees that would otherwise be payable under the Barclays Credit Facility and the Barclays Collateral Management Agreement. ABPCIC Funding was responsible for reimbursing the expenses incurred by the Adviser in the performance of its obligations under the Barclays Collateral Management Agreement other than any ordinary overhead expenses, which were not required to be reimbursed. The Fund did not incur any collateral management fees for the year ended December 31, 2020. For the year ended December 31, 2019, the Fund incurred collateral management fees of $426,758, which were voluntarily waived by the Adviser. The Barclays Credit Facility provided for borrowings in an aggregate amount up to $150 million. Borrowings under the Barclays Credit Facility bore interest paid on an annual adjusted LIBOR for the relevant interest period, plus an applicable spread of 2.25%. ABPCIC Funding would also pay an unused commitment fee of .50% and the commitment would have expired on July 30, 2020. Interest and fees were paid quarterly in arrears. Any amounts borrowed under the Barclays Credit Facility would have matured, and all accrued and unpaid interest thereunder would have been due and payable, on the earlier of (i) January 20, 2029, (ii) the date on which ABPCIC Funding issues collateralized loan obligation securities in a transaction for which the sole arranger is Barclays (or an affiliate thereof) or (iii) upon certain other events which result in accelerated maturity under the Barclays Credit Facility. Borrowing under the Barclays Credit Facility was subject to certain restrictions contained in the 1940 Act. On August 9, 2019, ABPCIC Funding issued collateralized loan obligation securities, and terminated the Barclays Credit Facility. For a discussion of the CLO Transaction see “ Notes to Consolidated Financial Statements — Note 4. Borrowings — Collateralized Loan Obligations. ” 70