Star Mountain Lower Middle-Market Capital Corp 8-K

What Happened

• Star Mountain Lower Middle‑Market Capital Corp announced on Jan 2, 2026 (filed by 8‑K on Jan 8, 2026) that it entered into a Note Purchase Agreement for $25,000,000 of Floating Rate Senior Unsecured Notes due January 15, 2029.
• The notes were sold in a private placement to a qualified institutional investor and are general unsecured obligations of the company that rank pari passu with other unsecured, unsubordinated indebtedness.

Key Details

• Principal: $25,000,000; Maturity: January 15, 2029.
• Interest: floating rate = Benchmark (based on TSFR3M Index Screen Rate) + 3.75% (375 bps); paid quarterly beginning April 15, 2026.
• Redemption / Prepayment: Company may redeem at par plus accrued interest (and, if applicable, a make‑whole premium); must offer prepayment at par plus accrued interest if certain change‑of‑control events occur.
• Covenants & protections: customary covenants and defaults for senior unsecured notes, including a minimum asset coverage ratio of 1.50 to 1.00; a Credit Rating Event would increase the interest rate by 0.50% above the stated rate while the event continues.

Why It Matters

• This filing creates a new $25M direct financial obligation for the company and increases its unsecured debt load. Investors should note the added interest expense and the covenant (1.50:1 asset coverage) that the company must maintain.
• The floating interest rate and potential step‑up on a Credit Rating Event affect the company’s future cash interest payments; redemption and change‑of‑control prepayment provisions can influence liquidity and capital‑structure flexibility.
• The Note Purchase Agreement is filed as Exhibit 10.1 to the 8‑K for investors who want the full terms and legal details.