Guggenheim (GBAB) enters $100 million BofA credit facility, ends SocGen facility
On October 11, 2024, the Trust entered a margin loan agreement with Bank of America, N.A. allowing borrowing of up to $100 million, subject to a borrowing base. The Trust also notified Société Générale that it will terminate its existing SocGen credit facility in full on November 20, 2024, and it will not borrow under the BofA facility until the SocGen facility is terminated. The filing bears on shareholders because it sets new borrowing terms and costs for the Trust.
- Borrowing limit of up to $100 million under the BofA facility, subject to a borrowing base and Investment Company Act limits
- Drawn amounts bear interest at daily SOFR plus 85 basis points; a 0.20% per annum fee applies to daily undrawn amounts, payable monthly
- SocGen credit facility to be terminated in full on November 20, 2024, with the termination linked to the new BofA facility
- Facility is secured by a perfected first-priority interest in certain Trust assets held in a segregated account; mandatory prepayments may apply on certain events