AB Private Credit Investors Closes $195M KeyBank Term Loan With Room to Reach $225M

The financing runs to 2035 and sits on a new subsidiary whose senior lenders are backed by loans the fund transfers in, with the fund’s own subordinated notes beneath them.

October 22, 2026

AB Private Credit Investors Corporation has closed $195 million of senior term loans from KeyBank National Association through a newly formed financing subsidiary, adding long-dated leverage that can grow to $225 million and runs until September 2035. The deal closed on October 15.

The borrower is ABPCI Private Funding V LLC, an indirect wholly owned subsidiary of the fund. The fund has contributed or sold loans to an intermediate entity, ABPCI Private Funding V Depositor LLC, which passed them on to the borrower. Those assets secure the senior debt, and the fund expects to keep transferring assets into the vehicle from time to time.

AB Private Credit Investors Corporation is a business development company that raises equity through capital calls on its investors. In May, it notified investors of a capital call of roughly $29.7 million tied to a new common stock issuance.

Senior debt terms

The senior financing comes in two classes under a Class A credit agreement, with KeyBank as lender on both:

• Class A-T term loans of $195 million, drawn at closing.
• Class A-D delayed drawdown term loans of up to $30 million in aggregate, available from two business days after closing through February 12, 2027.
• Interest on both classes at three-month SOFR plus 1.74% per year, paid quarterly in arrears.
• A commitment fee of 0.20% per year on the undrawn Class A-D amount, paid quarterly until those commitments reach zero.

The indenture also permits the borrower to issue Class A Senior Secured Floating Rate Notes, which would rank equally with the Class A loans, share their collateral and carry the same rate. None were issued at closing. Class A-T loans, Class A-D loans and Class A notes together cannot exceed $225 million unless the cap is raised under the financing documents.

Subordinated notes and the advance rate

Beneath the senior lenders, the borrower issued subordinated delayed drawdown notes to the depositor, a direct wholly owned subsidiary of the fund. The notes have a maximum principal amount of $105.9 million, and $93.6 million was drawn at closing. They carry no interest, are unsecured under the indenture and rank behind the Class A loans in right of payment.

The senior advance rate is capped at 68%. Each time the borrower draws Class A-D loans, it must draw enough on the subordinated notes at the same time to stay at or below that level.

Management, fees and asset transfers

AB Private Credit Investors LLC is collateral manager, responsible for buying and managing the assets that secure the senior loans. It has waived the fees it would otherwise earn under the collateral management agreement, and the borrower will reimburse its expenses other than ordinary overhead.

U.S. Bank Trust Company, National Association acts as collateral trustee, loan agent and collateral administrator, receiving customary quarterly fees for the administration role. U.S. Bank National Association holds the collateral accounts as custodian.

The fund may repurchase or substitute assets it previously transferred into the structure, subject to conditions in the transfer agreement and the indenture, but is not required to. Borrowing under the facility remains subject to the leverage restrictions of the Investment Company Act of 1940.

All notes and loans come due on September 30, 2035, or earlier if certain events trigger accelerated maturity.