AFC Commits $29 Million to a Senior Term Loan for a Sponsor Acquisition

Rhea-AI Summary

AFC (Nasdaq: AFCG) committed $29 million to a $60 million senior secured term loan to support a sponsor acquisition of a healthcare benefits platform. AFC funded $19.6 million at close, holds ~49% of the facility, which is secured by a lien and has a four-year term. The transaction follows AFC's conversion to a BDC and signals an expanded institutional lending mandate.

Positive

• Committed $29 million to a $60 million senior secured term loan
• Funded $19.6 million at close providing near-term deployed capital
• Holds approximately 49% of the total credit facility
• Facility is senior secured with a lien on all borrower assets
• Four-year term aligns with medium-term investment horizon

Negative

• AFC funded only $19.6 million initially, leaving remaining exposure contingent
• Holding 49% of facility may limit control relative to majority lenders

News Market Reaction

+4.52%

3 alerts

+4.52% News Effect

+2.8% Peak Tracked

+$2M Valuation Impact

$53M Market Cap

0.1x Rel. Volume

On the day this news was published, AFCG gained 4.52%, reflecting a moderate positive market reaction. Argus tracked a peak move of +2.8% during that session. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $2M to the company's valuation, bringing the market cap to $53M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

AFC loan commitment: $29 million Total term loan size: $60 million Funded at close: $19.6 million +4 more

7 metrics

AFC loan commitment $29 million Committed portion of senior secured term loan

Total term loan size $60 million Senior secured term loan for platform acquisition

Funded at close $19.6 million Amount funded by AFC at closing

Facility ownership 49% Approximate share of total credit facility held by AFC

Loan term 4 years Maturity of the senior secured term loan

Typical loan range (low) $10 million Lower end of AFC’s usual direct senior debt investments

Typical loan range (high) $100 million Upper end of AFC’s usual direct senior debt investments

Market Reality Check

Price: $2.31 Vol: Volume 304,178 is 0.58x t...

low vol

$2.31 Last Close

Volume Volume 304,178 is 0.58x the 20-day average of 526,352, indicating subdued trading interest pre-announcement. low

Technical Shares at $2.21 trade below the $3.95 200-day MA and sit 75.11% below the 52-week high, about 7.28% above the 52-week low.

Peers on Argus

AFCG is up 1.84% while peers show mixed moves: CHMI, LFT, and RPT are down, wher...

AFCG is up 1.84% while peers show mixed moves: CHMI, LFT, and RPT are down, whereas ACR and GPMT are up. With no peers in momentum scanners and no same-day peer headlines, today’s move appears more company-specific than sector-driven.

Historical Context

5 past events · Latest: Feb 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 05	New credit facility	Positive	-4.1%	Subsidiary closed a <b>$60M</b> first-lien term loan for combination financing.
Jan 05	BDC conversion complete	Positive	+6.3%	Completion of conversion from REIT to BDC under the <b>1940 Act</b>.
Nov 12	Q3 2025 earnings	Neutral	+0.6%	Reported GAAP net loss but positive distributable earnings and paid dividend.
Nov 06	BDC conversion vote	Positive	+1.3%	Shareholders approved proposals to convert from REIT to BDC structure.
Oct 28	Earnings call notice	Neutral	-1.8%	Scheduled Q3 2025 earnings release and conference call details.

Pattern Detected

Recent company-specific news, especially around the BDC conversion, has often seen price gains, while some new credit facilities have coincided with negative reactions.

Recent Company History

Over the last few months, AFCG has transitioned from a REIT to a BDC, with shareholders approving the change in Nov 2025 and completion effective Jan 1, 2026. Multiple announcements highlighted new credit facilities, including a $60 million senior secured facility disclosed on Feb 5, 2026. The new healthcare benefits platform loan continues this shift toward broader operating-company lending, building on the expanded investment mandate described in prior filings and news updates.

Market Pulse Summary

This announcement extends AFCG’s BDC strategy by committing $29 million to a $60 million senior secu...

Analysis

This announcement extends AFCG’s BDC strategy by committing $29 million to a $60 million senior secured term loan backing a healthcare benefits platform, secured by a lien on all borrower assets with a four-year term. It follows recent credit facilities and the completed BDC conversion, underscoring a pivot toward diversified operating-company lending. Investors may watch future disclosures for portfolio performance, concentration, and additional originations within the $10–$100 million target range.

Key Terms

senior secured term loan, credit facility, business development company, lien, +3 more

7 terms

senior secured term loan financial

"committed $29 million to a $60 million senior secured term loan."

A senior secured term loan is a type of borrowing where a company borrows money and promises to pay it back over a fixed period, with the loan secured by the company's assets as collateral. Because it is "senior," it has priority over other debts if the company faces financial trouble, and being "secured" means lenders have a claim on specific assets. For investors, this makes the loan a safer and more predictable investment compared to unsecured or subordinate debts.

credit facility financial

"The proceeds from the credit facility, including $19.6 million funded"

A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.

business development company financial

"conversion to a BDC earlier this year."

A business development company is a publicly traded investment vehicle that lends to and buys stakes in smaller or privately held companies, acting like a combination of a lender, investor, and business partner. It matters to investors because BDCs offer the potential for higher regular income through dividends and diversified exposure to growing businesses, but they can also carry greater credit and liquidity risk than typical stocks or bonds—think higher-yielding but riskier income instruments.

lien financial

"The credit facility is secured by a lien on all assets"

A lien is a legal claim a lender or creditor places on an asset—like property, equipment, or a bank account—giving them the right to seize or force sale of that asset if the borrower fails to repay what they owe. For investors, liens matter because they reduce the value or saleability of an asset, increase risk of loss if a company defaults, and reveal that cash flow or collateral is already promised to others, much like a mortgage limits what a homeowner can freely sell.

forward-looking statements regulatory

"This release contains forward-looking statements within the meaning"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Form 10-K regulatory

"included in AFC’s filings with the SEC, including in the “Risk Factors” ... Form 10-K, Form 10-Q"

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

Form 10-Q regulatory

"included in AFC’s filings with the SEC, including in the “Risk Factors” ... Form 10-K, Form 10-Q"

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

AI-generated analysis. Not financial advice.

Supports the Acquisition and Growth of a Leading Healthcare Benefits Platform and Demonstrates AFC’s Expanded Investment Mandate as a BDC

WEST PALM BEACH, Fla., Feb. 10, 2026 (GLOBE NEWSWIRE) -- AFC today announced that it has committed $29 million to a $60 million senior secured term loan.  The proceeds from the credit facility, including $19.6 million funded by AFC at close, will be used to finance the acquisition of a leading healthcare benefits platform (the “Platform”).

“We are excited to support a top-tier sponsor and management team in this transaction. The Platform has developed a comprehensive benefits program tailored toward a large and underserved segment of the workforce,” said Daniel Neville, Chief Executive Officer of AFC. “This transaction underscores our ability to provide flexible, institutional capital to sponsors following our conversion to a BDC earlier this year.”

The credit facility is secured by a lien on all assets of the borrower and has a four-year term. AFC holds approximately 49% of the total facility.

About AFC

AFC (Nasdaq: AFCG) is a publicly traded business development company that provides flexible credit solutions to lower middle market companies. The company primarily originates, structures, invests and manages direct senior debt investments typically ranging from $10 to $100 million. The company seeks to maximize risk-adjusted returns for its stockholders with an opportunistic approach across all industries. AFC is headquartered in West Palm Beach, Florida. For additional information regarding the company, please visit advancedflowercapital.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. Words such as “believes,” “expects,” “will,” “intends,” “plans,” “guidance,” “estimates,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including statements about our future growth and strategies for such growth, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the ability of our manager to locate suitable loan opportunities for us, monitor and actively manage our loan portfolio and implement our investment strategy; and other factors could cause actual results and performance to differ materially from those projected in these forward-looking statements. More information on these risks and other potential factors that could affect our business and financial results is included in AFC’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of AFC’s most recently filed periodic reports on Form 10-K, Form 10-Q and subsequent filings. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect AFC. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Relations Contact

Robyn Tannenbaum
561-510-2293
ir@advancedflowercapital.com

FAQ

What did AFCG announce on February 10, 2026 regarding the senior term loan?

AFCG committed $29 million to a $60 million senior secured term loan to finance an acquisition. According to the company, AFC funded $19.6 million at close, holds about 49% of the facility, and the loan carries a four-year term.

How will AFCG’s $19.6 million initial funding impact its liquidity and deployment?

The $19.6 million funded at close represents immediate deployed capital supporting the acquisition. According to the company, the funding demonstrates AFCG's ability to originate and deploy institutional credit after converting to a BDC earlier in the year.

What are the key terms of the $60 million credit facility that AFCG joined?

The credit facility is a four-year, senior secured term loan secured by a lien on all borrower assets. According to the company, AFCG committed $29 million total and presently holds approximately 49% of the facility's principal commitment.

What strategic rationale did AFCG give for supporting the healthcare benefits platform acquisition?

AFCG said the platform targets a large, underserved workforce segment with a comprehensive benefits program. According to the company, the investment aligns with AFCG's expanded mandate to provide flexible institutional capital to sponsors post-conversion to a BDC.

What ownership or control does AFCG have in the committed $60 million facility?

AFCG holds roughly 49% of the total facility commitment, making it a significant but not majority participant. According to the company, this stake gives AFCG meaningful exposure while sharing credit risk with other lenders.