AFC Provides $60 Million Senior Secured Credit Facility to Support the Combination of STAT Recovery Services and The Moresby Group

Rhea-AI Summary

AFC (Nasdaq: AFCG) announced that its subsidiary closed a $60 million senior secured credit facility to STAT Buyer, LLC, controlled by Cambridge Capital, to support the combination of STAT Recovery Services and The Moresby Group. The facility is a first-lien term loan with a five-year term and will finance the acquisition, refinance existing debt, and provide working capital for the combined entity.

Positive

• AFC committed a $60 million senior secured facility to the transaction
• Facility is a first-lien term loan secured by all borrower assets
• Loan has a five-year stated term, providing medium-term financing stability
• Financing supports combination of machine-learning revenue recovery and procurement optimization

Negative

• AFC holds full $60 million exposure to a single sponsor-controlled borrower
• New senior debt increases leverage on the combined STAT–Moresby entity

News Market Reaction

-4.13%

1 alert

-4.13% News Effect

On the day this news was published, AFCG declined 4.13%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Credit facility size: $60 million Loan size range: $10–$100 million Facility term: Five years

3 metrics

Credit facility size $60 million Senior secured credit facility to STAT Buyer, LLC

Loan size range $10–$100 million Typical direct senior debt investments originated by AFC

Facility term Five years Term of the first-lien term loan facility

Market Reality Check

Price: $2.21 Vol: Volume 328,789 vs 20-day ...

low vol

$2.21 Last Close

Volume Volume 328,789 vs 20-day average 535,577 ahead of this announcement. low

Technical Shares at $2.17 are trading below the $4.00 200-day moving average.

Peers on Argus

AFCG gained 0.93% while key mortgage REIT peers showed mixed moves (e.g., CHMI +...

AFCG gained 0.93% while key mortgage REIT peers showed mixed moves (e.g., CHMI +0.39%, RPT -3.9%), suggesting stock-specific factors around the new credit facility.

Historical Context

5 past events · Latest: Jan 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 05	BDC conversion completed	Positive	+6.3%	Completion of conversion from REIT to BDC under the 1940 Act framework.
Nov 12	Q3 2025 earnings	Neutral	+0.6%	Reported GAAP net loss but positive distributable earnings and outlined planned conversion.
Nov 06	BDC conversion approved	Positive	+1.3%	Shareholders approved REIT-to-BDC conversion and new advisory agreement and leverage terms.
Oct 28	Earnings call scheduled	Neutral	-1.8%	Announced timing and access details for upcoming Q3 2025 earnings release and call.
Sep 16	BDC plan announced	Positive	-3.5%	Outlined strategic plan and shareholder meeting to approve conversion from REIT to BDC.

Pattern Detected

Recent structural and strategic announcements around the REIT-to-BDC conversion generally saw modestly positive price reactions, with one earlier conversion-planning update drawing a negative response.

Recent Company History

Over the past several months, AFCG has focused on its transition from a REIT to a business development company, highlighted by shareholder approval on Nov 6, 2025 and completion effective Jan 1, 2026. Earnings on Nov 12, 2025 showed a GAAP net loss but positive distributable earnings, while multiple updates emphasized expanding beyond real-estate-backed loans. The new $60 million credit facility fits this broader senior secured lending strategy to middle-market borrowers.

Market Pulse Summary

This announcement highlights AFCG’s role as a business development company providing a $60 million s...

Analysis

This announcement highlights AFCG’s role as a business development company providing a $60 million senior secured, first-lien term loan with a five-year term to support a sponsor-backed combination in supply chain technology. It builds on earlier disclosures about expanding beyond real-estate-backed loans. Investors may watch how this facility contributes to interest income, portfolio diversification, and credit performance relative to prior BDC-conversion milestones and recent credit agreements.

Key Terms

senior secured credit facility, first-lien term loan, business development company, machine learning

4 terms

senior secured credit facility financial

"closed a $60 million senior secured credit facility to STAT Buyer, LLC"

A senior secured credit facility is a loan or revolving line of credit where lenders have first legal claim on specific company assets (collateral) and the debt ranks above other obligations for repayment. For investors it signals where a lender sits in the repayment pecking order and how much protection creditors have if the company struggles, affecting credit costs, the company’s ability to borrow more, and potential recoveries in a default — like a mortgage taking priority over other claims on a house.

first-lien term loan financial

"consists of a first-lien term loan secured by all assets of the borrower"

A first-lien term loan is a fixed-duration loan that gives the lender the primary legal right to seize and sell specific company assets if the borrower defaults. For investors, that senior claim means these loans are generally safer than subordinate debt because they get paid first in a bankruptcy, which affects expected risk and return; think of it like a first mortgage on a house versus a second loan behind it.

business development company financial

"AFC (Nasdaq: AFCG) is a publicly traded business development company"

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.

machine learning technical

"STAT’s machine-learning enabled revenue recovery technology with Moresby’s expertise"

Machine learning is a set of computer programs that learn patterns from large amounts of data and improve their predictions or decisions over time, like a recipe that gets better each time it’s adjusted based on taste tests. For investors it matters because these systems can speed up analysis, spot trends or risks humans might miss, automate routine work, and potentially create competitive advantages or cost savings that affect a company’s performance.

AI-generated analysis. Not financial advice.

Facilitating Cambridge Capital’s Strategy to Create a Leading Revenue and Cost Optimization Platform

WEST PALM BEACH, Fla., Feb. 05, 2026 (GLOBE NEWSWIRE) -- AFC today announced that its wholly owned subsidiary TCGDL LLC has closed a $60 million senior secured credit facility to STAT Buyer, LLC, a holding company controlled by Cambridge Capital (“Cambridge”), formed to facilitate the combination of its existing portfolio company STAT with The Moresby Group (“Moresby”). The proceeds from the credit facility will be used to finance the acquisition, refinance existing debt, and provide working capital to support the growth of the combined entity.

“We are excited to support Cambridge and the management teams of STAT and Moresby in this transformative transaction. This combination brings together STAT’s machine-learning enabled revenue recovery technology with Moresby’s specialized procurement negotiation expertise, creating a comprehensive solution for large enterprise customers,” said Daniel Neville, Chief Executive Officer of AFC. “This transaction underscores our ability to provide flexible, institutional capital to sponsor-backed companies with strong value propositions and significant growth potential in the supply chain technology sector.”

STAT, based in Bentonville, Arkansas, is a leading revenue recovery specialist serving CPG companies within the Walmart, Target, and Amazon ecosystems. Utilizing a proprietary framework and machine learning, STAT recovers unclaimed revenue for suppliers caused by system errors and invoice complications. Moresby, based in Toronto, is a procurement specialist focused on rapid cost savings for Fortune 1000 enterprises through long-tail supplier negotiation.

“We are pleased to partner with AFC on this financing that helped bring these two complementary businesses together,” said Benjamin Gordon, Managing Partner of Cambridge Capital. “The speed with which AFC was able to execute and the team's professionalism made the process seamless and efficient. We look forward to leveraging the combined strengths of STAT and Moresby to deliver material revenue and cost optimization for their clients.”

AFC holds the full $60 million credit facility, which consists of a first-lien term loan secured by all assets of the borrower. The facility has a five-year term.

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.

About Cambridge Capital

Cambridge Capital is an investment firm focused on the supply chain sector. The firm provides private equity to finance the expansion, recapitalization, or acquisition of growth companies in transportation, logistics, and supply chain technology. Cambridge partners with management teams to drive operational improvement and long-term value creation. For additional information, visit http://cambridgecapital.com.

About STAT

STAT is a leading, technology-enabled revenue recovery platform helping retail suppliers maximize recoveries and reduce unwarranted deductions from major retailers including Walmart, Target, and Amazon. Through proprietary software, automation, and deep industry expertise, STAT delivers industry-leading recovery rates while minimizing operational burden for customers. For additional information, visit http://statrecovery.com.

About The Moresby Group

The Moresby Group is a category-defining specialist in long-tail procurement optimization, helping Fortune 1000 enterprises reduce costs and improve working capital through targeted supplier negotiations. Founded by McKinsey procurement alumni, Moresby combines proprietary analytics, AI-enabled tools, and elite execution to deliver rapid, measurable results for enterprise clients. For additional information, visit http://moresbygroup.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 AFC (AFCG) announce on February 5, 2026 regarding STAT and Moresby?

AFC announced a $60 million senior secured credit facility to STAT Buyer, LLC. According to AFC, proceeds will finance the acquisition, refinance existing debt, and provide working capital to support the combination of STAT Recovery Services and The Moresby Group.

Who controls the borrower that received AFC's $60 million facility (AFCG)?

The borrower is controlled by Cambridge Capital, a supply chain-focused investment firm. According to AFC, STAT Buyer, LLC was formed by Cambridge to facilitate combining STAT and Moresby and execute the strategic revenue and cost optimization platform.

What are the key terms of the credit facility AFC (AFCG) provided on Feb 5, 2026?

The facility is a first-lien term loan with a five-year term secured by all borrower assets. According to AFC, the company holds the full $60 million facility and structured it to finance the acquisition and provide working capital.

How will AFC's (AFCG) financing be used by the combined STAT and Moresby entity?

Proceeds will fund the acquisition, refinance existing debt, and supply working capital to the combined business. According to AFC, the financing aims to support growth and integration of STAT's recovery technology with Moresby's procurement capabilities.

What risk does AFC (AFCG) take by funding the STAT–Moresby combination?

AFC assumes concentrated credit exposure by holding the full $60 million facility to one sponsor-controlled borrower. According to AFC, the loan is secured as first-lien, but concentration and borrower leverage remain investor-relevant risks.