Item 1.01. Entry into a Material Definitive Agreement.
On November 18, 2020, Alpine Funding LLC ("Alpine"), Sierra Income Corporation's
(the "Company") wholly owned, special purpose financing subsidiary, entered into
Amendment No. 1 to its existing Amended and Restated Loan Agreement (the
"Amendment"), with SIC Advisors LLC, the financing providers party thereto,
Citibank, N.A., as collateral agent and securities intermediary, Virtus Group,
LP, as collateral administrator and JPMorgan Chase Bank, National Association,
as administrative agent. The Amendment amends certain provisions of the
Company's Amended and Restated Loan Agreement (the "Loan Agreement").
The Loan Agreement was amended to, among other things, (i) extend the
reinvestment period from December 29, 2020 to May 18, 2021, (ii) increase the
applicable margin for advances from 2.85% to 3.10% per annum, (iii) reduce the
amount of maximum borrowings in an aggregate principal amount from $300,000,000
to $180,000,000 on a committed basis, (iv) require the Company to maintain a
minimum a cash balance of $20,000,000 in Alpine, and (v) decrease the compliance
condition for net advances from 55% to 52.5% of net asset value. The maturity
date under the Loan Agreement did not change and therefore any amounts borrowed,
as well as all accrued and unpaid interest thereunder, will be due and payable
on March 29, 2022. In connection with the Amendment, the Company repaid
$35,000,000 of the outstanding balance under the Loan Agreement on November 18,
2020, reducing the outstanding balance from $180,000,000 to $145,000,000.
The foregoing description of the Amendment does not purport to be complete and
is qualified in its entirety by reference to the full text of the Amendment
attached hereto as Exhibit 10.1.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information in Item 1.01 of this Current Report on Form 8-K is incorporated
by reference into this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) Exhibits.
Exhibit No. Description
10.1 Amendment No. 1 to Amended and Restated Loan Agreement, dated as of
November 18, 2020, among Alpine Funding LLC, SIC Advisors LLC, the
Financing Providers thereto, Citibank, N.A., as collateral agent and
securities intermediary, Virtus Group, LP, as collateral administrator
and JPMorgan Chase Bank, National Association, as administrative
agent.
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