AB 2020 Form 10-K

For the years ended December 31, 2020 and December 31, 2019, the components of interest expense related to the Barclays Credit Facility were as follows: For the Year Ended December 31, 2020 2019 Interest and borrowing expenses $ — $ 3,336,538 Commitment fees — 56,338 Amortization of deferred financing costs — 355,465 Total interest and borrowing expenses $ — $ 3,748,341 Borrowings of ABPCIC Funding were considered borrowings by the Fund for purposes of complying with the asset coverage requirements under the 1940 Act applicable to business development companies. The obligations of ABPCIC Funding under the Barclays Credit Facility were non-recourse to the Fund. The Barclays Credit Facility was in effect during 2019, but terminated on August 9, 2019. Synovus Credit Facility On October 15, 2020, ABPCIC Funding II, entered into the Synovus Credit Facility. In connection with the Synovus Credit Facility, ABPCIC Funding II entered into, among other agreements, (i) the loan financing and servicing agreement (the “Synovus Loan Agreement”) with the Fund, as equityholder, the Adviser, as servicer (in such capacity, the “Synovus Servicer”), the lenders referred to therein, Synovus, as facility agent, and U.S. Bank, as collateral agent, collateral custodian and securities intermediary, (ii) the securities account control agreement (the “Synovus Control Agreement”), by and among ABPCIC Funding II, the Synovus Collateral Agent and the Synovus Securities Intermediary and (iii) the amended and restated sale and contribution agreement (the “Synovus Transfer Agreement”) by and between the Fund, as seller, and ABPCIC Funding II, as purchaser. The Synovus Loan Agreement provides for borrowings in an aggregate amount up to $100 million. Borrowings under the Synovus Loan Agreement bear interest based on an annual adjusted LIBOR for the relevant interest period or the applicable replacement thereto provided in the Synovus Loan Agreement, in each case, plus an applicable spread. Interest is payable quarterly in arrears. Any amounts borrowed under the Synovus Loan Agreement will mature, and all accrued and unpaid interest thereunder will be due and payable, on the earlier of (i) October 15, 2025 (or such later date mutually agreed to by ABPCIC Funding II and Synovus) or (ii) upon certain events which result in accelerated maturity under the Synovus Credit Facility. Borrowing under the Synovus Credit Facility is subject to certain restrictions contained in the 1940 Act. Borrowings under the Synovus Loan Agreement are secured by all of the assets held by ABPCIC Funding II. Pursuant to the Synovus Loan Agreement, the Adviser will perform certain duties with respect to the purchase and management of the assets securing the Synovus Credit Facility. The Adviser will not receive a fee under the Synovus Loan Agreement so long as the Adviser or an affiliate thereof remains the Synovus Servicer. ABPCIC Funding II will reimburse all reasonable expenses, disbursements and advances incurred or made by the Synovus Servicer in the performance of its obligations under the Synovus Loan Agreement. ABPCIC Funding II has made customary representations and warranties under the Synovus Loan Agreement and is required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities. All of the collateral pledged to the lenders by ABPCIC Funding II under the Synovus Loan Agreement is held in the custody of the Synovus Collateral Custodian or the Synovus Securities Intermediary under the Synovus Control Agreement. The Synovus Collateral Custodian will maintain and perform certain custodial services with respect to the collateral pursuant to the Synovus Loan Agreement. As compensation for the services rendered by U.S. Bank in its capacities as Synovus Collateral Custodian and Synovus Collateral Agent, ABPCIC Funding II will pay U.S. Bank, on a quarterly basis, customary fee amounts and reimburse U.S. Bank for its reasonable out-of-pocket expenses. On or prior to the closing of the Synovus Credit Facility, the Fund contributed and/or sold certain assets to ABPCIC Funding II pursuant to the Synovus Transfer Agreement, and the Fund expects to continue to contribute and/or sell assets to ABPCIC Funding II pursuant to the Synovus Transfer Agreement in the future. The Fund may, but shall not be required to, repurchase and/or substitute certain assets previously transferred to ABPCIC Funding II subject to the conditions specified in the Synovus Transfer Agreement and the Synovus Loan Agreement. As of December 31, 2020, the Fund had drawn $84,700,000 from the Synovus Credit Facility. The Fund incurred certain customary fees, costs and expenses in connection with the closing of the Synovus Credit Facility. 71