Overland Advantage 8-K/A

What Happened

• Overland Advantage filed an 8-K on July 9, 2026 reporting a Fourth Amendment (dated July 2, 2026) to its Revolving Credit Facility. The amendment was made among Overland Financing MS, LLC (the borrower), the Company (as servicer/transferor), Morgan Stanley Senior Funding, Inc. (administrative agent) and the lenders.
• The amendment extends the revolving commitment period and the facility maturity, lowers interest spreads and certain fees, modifies loan eligibility for Recurring Revenue Loans, and revises a liquidity covenant and concentration limits.

Key Details

• Revolving period extended from February 22, 2027 to July 2, 2028; facility maturity extended from February 22, 2029 to July 2, 2030.
• Interest spreads reduced: during the revolving period from benchmark (3-month term SOFR currently) + 2.35% → +1.95%; post-revolving period from benchmark + 2.85% → +2.45%.
• Unused commitment fee lowered from 0.50% to 0.40% per annum.
• Liquidity covenant raised: Company must have, at each quarter end, liquidity greater of $30.0 million and 7.5% of the Borrower’s total indebtedness (previously greater of $25.0 million and 7.5%).
• Removed certain exceptions allowing Recurring Revenue Loans to be treated as Eligible Loans (limiting the Borrower’s ability to invest further in those loans).
• Increased concentration cap for Second Lien Loans and FLLO Loans from 15.0% to 25.0% of the Concentration Denominator.

Why It Matters

• The amendment extends committed funding and pushes the facility maturity further into 2030, which supports near- to medium-term liquidity and borrowing capacity. Lower spreads and fees reduce the Company’s borrowing costs while the revolver is available and afterward.
• At the same time, the Company faces a higher minimum liquidity requirement ($30M) and tighter eligibility for Recurring Revenue Loans, which could constrain how it deploys capital into certain assets. The higher concentration caps for some loan types permit greater exposure to Second Lien and FLLO loans, affecting portfolio mix and risk profile.
• Investors should note the concrete effects on financing cost, available liquidity, and allowed asset composition as reflected in the amended credit terms.