Advanced Flower Capital boosts revolver to $110M
Advanced Flower Capital Inc. updated its main lending agreement to adjust loan terms and increase its revolving credit capacity.
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Form Type
8-K
Rhea-AI Filing Summary
Advanced Flower Capital Inc. updated its main lending agreement to adjust loan terms and increase its revolving credit capacity. The Ninth Amendment to its Loan and Security Agreement raises aggregate revolver commitments to $110 million, including a $30 million temporary increase during a defined Temporary Increase Period.
After this period ends, total revolving commitments and the maximum revolver amount will automatically step down to $80 million. The amendment also aligns certain reporting requirements with typical business development company standards and sets conditions for when specific credit facilities can be included in the borrowing base.
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, or exhibit attachments filed with this report.
Key Figures
Aggregate revolver commitments (temporary): $110 million
Temporary increase amount: $30 million
Revolver commitments after step-down: $80 million
+1 more
4 metrics
Aggregate revolver commitments (temporary)
$110 million
Total revolving commitments during Temporary Increase Period under Ninth Amendment
Temporary increase amount
$30 million
Incremental revolver commitments during Temporary Increase Period
Revolver commitments after step-down
$80 million
Aggregate revolving commitments after Temporary Increase Period ends
Amendment date
June 26, 2026
Date of Amendment Number Nine to Loan and Security Agreement
Key Terms
Material Definitive Agreement, Loan and Security Agreement, Temporary Increase Period, revolver commitments, +1 more
5 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.
Loan and Security Agreement financial
"entered into Amendment Number Nine to the Loan and Security Agreement"
A loan and security agreement is a legal contract that sets out the amount, repayment schedule, interest and the rules a borrower must follow, and it names specific assets a lender can claim if the borrower fails to pay. Think of it like a mortgage or car loan where the lender holds a claim on collateral until the debt is repaid. Investors care because it determines a company’s repayment priorities, borrowing costs, operational limits and how easily creditors can seize assets in distress, all of which affect equity value and credit risk.
Temporary Increase Period financial
"a $30 million temporary increase in revolver commitments during a specified temporary increase period (the “Temporary Increase Period”)"
revolver commitments financial
"increased the aggregate revolver commitments under the facility to $110 million"
borrowing base financial
"set certain conditions for including specific credit facilities in the borrower 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.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Advanced Flower Capital Inc. (AFCG) change in its loan agreement?
Advanced Flower Capital amended its Loan and Security Agreement through a Ninth Amendment. The update adjusts reporting terms, borrowing base conditions, and increases total revolver commitments with a temporary expansion before reverting to a lower level.
How much is Advanced Flower Capital’s revolver commitment after the Ninth Amendment?
The Ninth Amendment sets Advanced Flower Capital’s aggregate revolver commitments at $110 million during a Temporary Increase Period. When that period ends, the commitments and maximum revolver amount automatically decrease to $80 million under the facility.
What is the Temporary Increase Period in AFCG’s amended credit facility?
The Temporary Increase Period is a defined timeframe in which revolver commitments rise by $30 million to a total of $110 million. After this period, the commitments automatically return to $80 million under the amended facility.
Does the Advanced Flower Capital amendment create a new financial obligation?
Yes. The company describes the Ninth Amendment to its Loan and Security Agreement as a material definitive agreement and also reports it as the creation of a direct financial obligation, reflecting the revised revolving credit commitments.
Why did Advanced Flower Capital revise reporting terms in the Ninth Amendment?
The Ninth Amendment states that certain reporting information was conformed to market standards for business development companies. This alignment helps ensure the company’s reporting under the facility matches typical expectations for its regulatory and industry category.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): June 26, 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. ☐
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Item 1.01 Entry into a Material Definitive Agreement
Amendment to Loan and Security Agreement
On June 26, 2026, Advanced Flower Capital Inc., a Maryland corporation (the “Company”), entered into Amendment Number Nine to the Loan and Security Agreement (the “Ninth Amendment”), dated as of April 29, 2022 (as amended, supplemented or otherwise modified from time to time, including by the Ninth Amendment), by and among the Company, as borrower, the lenders party thereto and the lead arranger, bookrunner and administrative agent party thereto. The Ninth Amendment, among other things, conformed certain reporting information to market standard for business development companies, set certain conditions for including specific credit facilities in the borrower base, and increased the aggregate revolver commitments under the facility to $110 million, consisting of a $30 million temporary increase in revolver commitments during a specified temporary increase period (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 Ninth Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of Ninth Amendment, which is filed with this report as Exhibit 10.9I 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 Ninth 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 | |||||||
10.9I | Amendment Number Nine to the Loan and Security Agreement, dated as of June 26, 2026, by and among the Company, as borrower, the lenders party thereto, and the lead arranger, bookrunner and administrative agent party thereto. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
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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: June 30, 2026 | ||||||||
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