Barings Private Credit Corp 8-K

What Happened

• On June 3, 2026 Barings Private Credit Corporation (the Company), through its wholly‑owned subsidiary BPC Funding 2 LLC, entered into a Loan and Security Agreement (the "Wells Loan Agreement") with Wells Fargo Bank, N.A. as administrative agent and other lenders, establishing a revolving credit facility. The initial maximum borrowing is $500 million with an accordion feature to increase the facility up to $850 million. The Company filed the 8‑K on June 5, 2026 (Item 1.01 / Item 2.03).

Key Details

• Initial facility size: $500 million; accordion capacity up to $850 million.
• Interest: Daily Simple SOFR (for dollar advances) plus a 2.15% margin; foreign currency advances use the applicable benchmark plus the same margin.
• Fees & timing: During the reinvestment period a non‑usage fee applies (0.50% p.a. on the full unused amount initially; thereafter 0.50% p.a. on unused up to 35% of the facility and 1.50% p.a. on remaining unused amounts).
• Term: Borrowing period ends June 1, 2029; facility matures June 3, 2031.
• Security & recourse: Lenders have a first‑priority security interest in BPC Funding’s portfolio investments and cash. Obligations are non‑recourse to the parent Company—Barings’ exposure is limited to the value of its investment in BPC Funding.
• Other: Borrowings are subject to a borrowing base and asset eligibility/portfolio concentration limits; customary representations, covenants and default provisions (including change of control) apply and may restrict disposals of portfolio assets without lender consent on default.

Why It Matters

• The facility gives BPC Funding 2 LLC significant committed liquidity (initially $500M) to support its portfolio activities and potential securitizations, with room to expand to $850M.
• The loan is secured by the subsidiary’s assets but is non‑recourse to the parent, so Barings Private Credit Corporation’s direct liability is limited to its equity investment in the subsidiary.
• Investors should note the interest and fee structure, borrowing base constraints and default provisions (which can trigger acceleration or limit asset sales), as these affect the subsidiary’s financing cost and operational flexibility.