Tech Income Funding I enters credit agreement for up to $1 billion

By Mary-Katherine Stinson

Lexington, Ky., May 3 – Tech Income Funding I LLC, a newly formed subsidiary of Owl Rock Technology Income Corp., entered on April 27 into a secured credit agreement maturing May 6, 2027, according to an 8-K filing with the Securities and Exchange Commission.

The facility provides the ability to draw and redraw revolving loans under the secured credit facility for up to three years after closing up to a maximum of $1 billion subject to a borrowing base test based on the value of Tech Income Funding I’s assets from time to time, and satisfaction of certain conditions including certain concentration limits and other portfolio tests.

Goldman Sachs Bank USA was the lead arranger, syndication agent and administrative agent.

State Street Bank and Trust Co. was the collateral administrator and collateral agent.

Alter Domus (US) LLC was the collateral custodian.

Borrowings under the facility bear interest at SOFR plus a spread of 275 basis points with the spread being payable on the amount by which the undrawn amount exceeds a minimum threshold, initially zero and ramping to 70% of the commitment amount. The undrawn amount of the commitment not subject to such spread payment is subject to an undrawn fee of 0.5% per year.

On May 6, Tech Income Funding I and Goldman Sachs Bank USA, as administrative agent, will also enter into a margining agreement related to the secured credit facility.

Under the margining agreement and credit agreement, Tech Income Funding I is required to post cash margin, or in certain cases, additional eligible assets to the administrative agent if a borrowing base deficiency occurs or if the weighted average price gap falls below a threshold level.

The credit facility will be secured by a perfected first priority security interest in the assets of Tech Income Funding I and on any payments received by Tech Income Funding I.

Proceeds will be used to finance the origination and acquisition of eligible assets by Tech Income Funding I, including the purchase of such assets from the company.

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