Star Mountain Lower Middle-Market Capital Corp. Amends Loan Facility

What Happened

• On August 13, 2026, Star Mountain Lower Middle-Market Capital Corp. entered into a Sixth Amendment to its Loan and Servicing Agreement (originally dated July 2, 2021) with Webster Bank, N.A. (Agent) and the lenders party to the facility.
• The amendment adjusts key loan terms including advance rates, aggregate commitments, concentration limits, maturity date, and the definition of the Swing Loan Excess Amount. The company filed the Sixth Amendment as Exhibit 10.1 to its Form 8-K dated August 19, 2026.

Key Details

• Aggregate Commitments reduced from $200.0 million to $185.0 million.
• Scheduled Maturity Date extended from June 30, 2028 to July 3, 2029.
• Advance rates increased for First Lien Loan Assets and First Lien Last Out Loan Assets.
• Swing Loan Excess Amount redefined as the lesser of $15,000,000 and ($95,000,000 minus the Swing Lender’s Commitment).

Why It Matters

• These changes affect the company’s borrowing capacity and liquidity: a lower total commitment reduces maximum available credit, while higher advance rates may allow more borrowing against qualifying loan collateral.
• Extending the maturity date gives the company more time before the facility matures, which may ease near-term refinancing pressure.
• Adjustments to concentration limits and the Swing Loan Excess Amount change how much the company can draw and how the loan portfolio is managed, which can influence risk and flexibility for future funding.
• The amendment is a material financing update investors should note when assessing the company’s liquidity profile and capital structure.