AB 2020 Form 10-K

For the year ended December 31, 2020, the components of interest expense related to the Synovus Credit Facility were as follows: For the Year Ended December 31, 2020 Interest and borrowing expenses $ 419,150 Unused facility fee 43,849 Amortization of deferred financing costs and upfront commitment fees 112,342 Total interest and borrowing expenses $ 575,341 Secured Borrowings From time to time, the Fund may engage in sale/buy-back agreements, which are a type of secured borrowing. The amount, interest rate and terms of these agreements will be individually negotiated on a transaction-by-transaction basis. Each borrowing is secured by an interest in an underlying asset which is participated or assigned to the sale/buy-back counterparty for the duration of the agreement. The Fund entered into the Macquarie Sale/Buy-Back on September 29, 2020. As of December 31, 2020, secured borrowings pursuant to the Macquarie Sale/Buy-Back were $18,870,856 with a maturity of less than thirty days. Interest expense and amortization of deferred financing costs on secured borrowings for the year ended December 31, 2020 were $48,928 and $8,910, respectively. Secured borrowings outstanding as of December 31, 2020 with Macquarie were as follows: Loan Name Trade Date Maturity Date bps Daily Rate Amount Businessolver.com, Inc. 12/23/2020 60 days or less from trade date 1.25 $ 5,312,058 Medbridge Holdings, LLC 12/23/2020 60 days or less from trade date 1.25 7,710,514 Higginbotham Insurance Agency, INC. 12/23/2020 60 days or less from trade date 1.25 5,848,284 $18,870,856 Debt Securitization On August 9, 2019, the Issuer and the Co-Issuer, each a newly formed special purpose vehicle, completed the CLO Transaction. The Notes offered by the Co-Issuers in the CLO Transaction are secured by a diversified portfolio of the Co-Issuers consisting primarily of middle market loans and participation interests in middle market loans and may also include some broadly syndicated loans. The CLO Transaction was executed through a private placement of: (i) $178,200,000 of Class A-1 Senior Secured Floating Rate Notes, which bear interest at three-months LIBOR plus 1.73% per annum ; (ii) $25,000,000 of Class A-2A Senior Secured Floating Rate Notes, which bear interest at LIBOR plus 2.45% per annum ; (iii) $9,950,000 of Class A-2B Senior Secured Fixed Rate Notes, which bear interest at 4.23% per annum ; (iv) $16,400,000 of Class B Secured Deferrable Floating Rate Notes, which bear interest at LIBOR plus 3.40% per annum ; and (v) $17,350,000 of Class C Secured Deferrable Floating Rate Notes, which bear interest at LIBOR plus 4.40% per annum . The Notes are scheduled to mature on August 9, 2030. In a series of contemporaneous transactions on the closing date of the CLO Transaction, (i) the Issuer, together with the issuance of certain of the Notes (including $16,400,000 of Class B Notes, $17,350,000 of Class C Notes and $53,600,000 of subordinated notes (the “Subordinated Notes”) to ABPCI Direct Lending Fund CLO VI Depositor LLC (the “Depositor”), a wholly-owned subsidiary of the Fund, purchased the initial collateral obligations (which will settle pursuant to the Closing Merger, as such term is defined below) pursuant to a loan sale and contribution agreement dated as of August 9, 2019 (the “Loan Sale Agreement”), among the Fund, as seller, the Depositor, as intermediate seller, and the Issuer, as buyer, as amended or otherwise modified from time to time, (ii) the Issuer repaid all of the outstanding obligations owed to the lenders and agents of the Barclays Credit Facility, (iii) the Issuer made a cash distribution of approximately $8,400,000 to the Fund (in its capacity as sole member of ABPCIC Funding), (iv) the Fund caused ABPCIC Funding to merge into the Issuer with the Issuer being the entity surviving such merger (such merger transaction, the “Closing Merger”) and (v) the Issuer made any other payments due in connection with the repayment of the Barclays Credit Facility and the Closing Merger and paid any other fees and expenses expected to be paid as of such date. Any realized and unrealized gains and losses of ABPCIC Funding during the term of the Barclays Credit Facility are for the Issuer’s account (except to the extent previously distributed to the Fund). Under the terms of the Closing Merger, the rights and property of ABPCIC Funding (including the collateral obligations and eligible investments (if any) acquired by ABPCIC Funding and not distributed or sold as described above) 72