Chicago Atlantic BDC secures $100M credit line | Where to buy Skittles Moonrock online

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Chicago Atlantic BDC, Inc. (NASDAQ: LIEN) announced Wednesday it has closed on a new $100 million senior secured revolving credit facility.

The credit facility, led by an unnamed FDIC-insured financial institution, matures in March 2028 and carries an interest rate of SOFR plus 3%, according to the company.

Scott Gordon, executive chairman and co-chief investment officer, said the facility provides “significant liquidity and the flexibility” to grow the company’s portfolio amid what he described as “robust lending opportunities in the originations pipeline.”

The firm currently has no debt outstanding, according to Gordon. The announcement follows the company’s December disclosure of a $0.34 per share dividend for the fourth quarter of 2024, a 36% increase from the previous quarter

The company’s growth strategy comes alongside improving fundamentals. Total investment income rose to $3.2 million in the third quarter of 2024 from $2.9 million a year earlier, with $30.1 million in available liquidity at quarter’s end.

CEO Andreas Bodmeier recently highlighted favorable industry trends, noting “federal and state regulatory environments becoming more favorable, and the credit quality of borrowers improving in our markets.”

“We are seeing lower middle-market and middle-market companies increasingly underserved by larger banks and private credit providers,” Bodmeier said in November.

As of October 2024, the company reported its portfolio consisted entirely of senior-secured loans with a weighted average yield of 17.2% on debt investments. Recent transactions include a $6.82 million loan to STIIIZY, Inc. and a $5 million commitment to Deep Roots Harvest, Inc.

The company’s portfolio metrics consist of a weighted average senior secured net debt to EBITDA ratio of 1.6x and interest coverage of 4.1x, according to the news release. The median revenue and EBITDA of companies in the portfolio stood at $85 million and $19 million respectively.

Chicago Atlantic BDC is managed by Chicago Atlantic BDC Advisers, LLC, which also oversees Chicago Atlantic Real Estate Finance Inc. (NASDAQ: REFI) and other private funds focused on cannabis industry lending.

The company maintains a strategy of investing in what it terms “uncorrelated, idiosyncratic credit opportunities” in cannabis and other niche markets that traditionally lack access to conventional financing sources.