Credit expansion lifts AFC (NASDAQ: AFCG) revolver capacity to $80M
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Advanced Flower Capital Inc. expanded its senior secured revolving credit facility by increasing aggregate revolver commitments under its loan agreement. The facility’s total commitments rose by $56 million, from $50 million to $106 million, including a $30 million permanent increase and a $26 million temporary increase from March 27, 2026 through April 10, 2026. After this temporary period ends, total revolving commitments will automatically adjust to $80 million. The company plans to use availability under the facility to fund existing borrower commitments, originate and participate in new commercial loans to U.S. lower middle-market companies, and for working capital and other general corporate purposes.
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Insights
AFCG secures larger revolving credit capacity to support loan growth.
Advanced Flower Capital Inc. amended its loan and security agreement to boost aggregate revolver commitments from $50 million to $106 million, with a $30 million permanent increase and a $26 million temporary increase through April 10, 2026. After this period, commitments step down to $80 million.
The press release notes an additional $30 million commitment from the lead arranger, an FDIC-insured bank with over $75 billion of assets, which may signal lender confidence in AFC’s credit platform. The facility also remains expandable to $100 million, subject to lender participation and borrowing base limits.
The company intends to use this expanded capacity to fund existing loan commitments, originate and participate in new commercial loans to U.S. lower middle-market companies, and support working capital and other corporate needs. Actual impact will depend on AFC’s ability to source attractive loans and manage credit risk within its business development company strategy.
8-K Event Classification
3 items: 1.01, 2.03, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Prior revolver commitments: $50 million
Total revolver commitments during temporary period: $106 million
Permanent increase in revolver commitments: $30 million
+5 more
8 metrics
Prior revolver commitments
$50 million
Aggregate revolving commitments before Eighth Amendment
Total revolver commitments during temporary period
$106 million
Aggregate commitments from March 27, 2026 to April 10, 2026
Permanent increase in revolver commitments
$30 million
Long-term increase provided under Eighth Amendment
Temporary increase in revolver commitments
$26 million
Additional capacity during Temporary Increase Period
Revolver size after temporary period
$80 million
Ongoing aggregate revolving commitments after April 10, 2026
Facility expandability
$100 million
Maximum potential facility size subject to lender participation
Lead arranger bank assets
$75 billion
Approximate asset size of FDIC-insured lead arranger bank
Target portfolio EBITDA range
$5–$50 million
Yearly EBITDA range for AFC’s typical portfolio companies
Key Terms
Material Definitive Agreement, senior secured revolving credit facility, business development company, FDIC-insured bank, +2 more
6 terms
Material Definitive Agreement regulatory
"Item 1.01 Entry into a Material Definitive Agreement Amendment to Loan and Security Agreement"
A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.
senior secured revolving credit facility financial
"AFC today announced that it has expanded its senior secured revolving credit facility"
A senior secured revolving credit facility is a multi‑use bank lending line that a company can draw, repay and redraw as needed, backed by specific assets and ranked first in repayment order if the company defaults. Think of it like a collateralized credit card that gives flexible short‑term cash while lenders hold priority to recover their money; investors watch it because it affects a company’s liquidity, borrowing cost, and who gets paid first in financial distress.
business development company financial
"AFC is a publicly traded business development company that provides flexible credit solutions"
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.
FDIC-insured bank regulatory
"Lead Arranger, an FDIC-insured bank with over $75 billion of assets"
borrowing base financial
"The facility remains expandable to $100 million, subject to lender participation and available borrowing base."
A borrowing base is the amount a lender will allow a company to borrow based on the value of assets the company offers as security, typically things like accounts receivable and inventory. It matters to investors because it sets a practical ceiling on short-term financing and influences a company’s liquidity and risk: if the borrowing base falls, the company may lose access to cash or be forced to sell assets, which can affect operations and share value.
forward-looking statements regulatory
"This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995"
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.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 27, 2026
(Exact name of Registrant as Specified in Its Charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
1
Item 1.01 Entry into a Material Definitive Agreement
Amendment to Loan and Security Agreement
On March 27, 2026, Advanced Flower Capital Inc., a Maryland corporation (the “Company”), entered into Amendment Number Eight to the Loan and Security Agreement (the “Eighth Amendment”), dated as of April 29, 2022 (as amended, supplemented or otherwise modified from time to time, including by the Eighth Amendment), by and among the Company, as borrower, the lenders party thereto and the lead arranger, bookrunner and administrative agent party thereto. The Eighth Amendment, among other things, increased the aggregate revolver commitments under the facility by $56 million, from $50 million to $106 million, consisting of (i) a $30 million permanent increase in revolver commitments and (ii) a $26 million increase in revolver commitments during a specified temporary increase period beginning on March 27, 2026 and ending on April 10, 2026 (the “Temporary Increase Period”).
Upon expiration of the Temporary Increase Period, the aggregate revolving commitments and the maximum revolver amount under the facility will automatically be reduced to $80 million.
The foregoing description of the Eighth Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of Eighth Amendment, which is filed with this report as Exhibit 10.9H and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of Registrant
The information provided in Item 1.01 of this Current Report relating to the Eighth Amendment is incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits
(d)Exhibits. The following exhibits are being filed with this Current Report.
| Exhibit No. | Description | |||||||
10.9H | Amendment Number Eight to the Loan and Security Agreement, dated as of March 27, 2026, by and among the Company, as borrower, the lenders party thereto, and the lead arranger, bookrunner and administrative agent party thereto. | |||||||
99.1 | Press Release issued by Advanced Flower Capital Inc. on March 30, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s 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 the Company’s 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 the Company’s manager to locate suitable loan opportunities for the Company, monitor and actively manage the Company’s loan portfolio and implement the Company’s investment strategy; the demand for cannabis cultivation and processing facilities and dispensaries; management’s current estimate of expected credit losses and current expected credit loss reserve 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 the Company’s business and financial results is included in the Company’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 Company’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 the Company. The Company does 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.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ADVANCED FLOWER CAPITAL INC. | ||||||||
| By: | /s/ Brandon Hetzel | |||||||
| Brandon Hetzel | ||||||||
| Chief Financial Officer and Treasurer | ||||||||
| Date: March 30, 2026 | ||||||||
3
AFC Expands Revolving Credit Facility with $30 Million
Additional Commitment from Existing FDIC-Insured Banking Partner
WEST PALM BEACH, FL, March 30, 2026 – AFC today announced that it has expanded its senior secured revolving credit facility (“Credit Facility”) to $80 million with an additional $30 million commitment from the facility’s Lead Arranger, an FDIC-insured bank with over $75 billion of assets. AFC intends to use availability under the Credit Facility to fund commitments to existing borrowers, originate and participate in commercial loans to U.S. lower middle-market companies in line with its investment strategy, and support working capital and other general corporate purposes. The facility remains expandable to $100 million, subject to lender participation and available borrowing base.
About AFC
AFC 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 in companies typically generating yearly EBITDA of $5 to $50 million. The company seeks to maximize risk-adjusted returns for its shareholders with an opportunistic approach across all industries. AFC is headquartered in West Palm Beach, Florida. For additional information regarding AFC, 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 Securities and Exchange Commission (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
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Filing Exhibits & Attachments
5 documentsPress Releases
Agreements & Contracts
Advanced Flower Capital Inc