AB 2020 Form 10-K

immediately vested in the Issuer. In addition, the Issuer became liable for and subject, in the same manner as ABPCIC Funding, to all funding obligations on any revolving collateral obligations and delayed drawdown collateral obligations and all other liabilities and obligations related to the collateral obligations previously owned by ABPCIC Funding. Following the closing of the CLO Transaction, the Depositor is the 100% owner of the Subordinated Notes. The Notes are the secured obligations of the Co-Issuers, and the indenture governing the Notes includes customary covenants and events of default. The Notes have not been, and will not be, registered under the Securities Act, as amended, or any state securities or “blue sky” laws and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from registration. The Adviser serves as collateral manager to the Issuer pursuant to the Collateral Management Agreement. For so long as the Adviser serves as collateral manager to the Issuer, the Adviser will elect to irrevocably waive any base management fee or subordinated interest to which it may be entitled under the Collateral Management Agreement. For the year ended December 31, 2020, the Fund incurred a collateral management fee of $1,843,957, which was voluntarily waived by the Adviser. The interest rate and outstanding borrowings under the Notes as of December 31, 2020 were as follows: Notes Principal Amount Interest rate at December 31, 2020 Carrying Value Fair Value Class A-1 $ 178,200,000 L+1.73% $ 176,706,612 178,352,361 Class A-2A 25,000,000 L+2.45% 24,790,490 25,361,000 Class A-2B 9,950,000 4.23% 9,840,396 10,639,316 Class B 16,400,000 L+3.40% 0 0* Class C 17,350,000 L+4.40% 0 0* Subordinated Notes 53,600,000 N/A 0 0* Total $ 300,500,000 $ 211,337,498 $ 214,352,677 *Class B, Class C and Subordinated Notes have been eliminated in consolidation The interest rate and outstanding borrowings under the Notes as of December 31, 2019 were as follows: Notes Principal Amount Interest rate at December 31, 2020 Carrying Value Fair Value Class A-1 $ 178,200,000 L+1.73% $ 175,875,031 178,195,723 Class A-2A 25,000,000 L+2.45% 24,673,826 24,889,050 Class A-2B 9,950,000 4.23% 9,787,776 9,916,279 Class B 16,400,000 L+3.40% 0 0* Class C 17,350,000 L+4.40% 0 0* Subordinated Notes 53,600,000 N/A 0 0* Total $ 300,500,000 $ 210,336,633 $ 213,001,052 *Class B, Class C and Subordinated Notes have been eliminated in consolidation For the years ended December 31, 2020 and December 31, 2019, the components of interest expense related to the Notes were as follows: For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 Interest and borrowing expenses $ 6,158,551 $ 3,359,202 Amortization of debt issuance costs 1,000,865 522,563 Total interest and borrowing expenses $ 7,159,416 $ 3,881,765 Equity Activity The Fund has the authority to issue 200,000,000 Shares. 73