TPG Twin Brook Fund Opens $362.5M CLO Warehouse, Lifts SMBC Revolver to $1.075B
Two agreements with Sumitomo Mitsui in back-to-back days give the private credit fund a financing bridge toward a securitization and push its core credit line’s maturity out to 2031.
October 5, 2026
TPG Twin Brook Capital Income Fund has added two new financing arrangements with Sumitomo Mitsui Banking Corporation (SMBC) within two days. It opened a loan warehouse facility with up to $362.5 million in senior commitments and enlarged its main revolving credit line to $1.075 billion.
A Warehouse Built Around a Future CLO
On September 28, 2026, Twin Brook Capital Funding XXXIII SMPV, LLC, an indirect wholly owned subsidiary of the fund, entered into a credit agreement with SMBC as administrative agent. Computershare Trust Company, N.A. serves as collateral agent, collateral administrator and custodian. The facility carries an initial maximum senior loan commitment of $362.5 million, available against a borrowing base made up primarily of commercial loans the subsidiary originates or acquires. Subordinated term lenders are also party to the agreement.
The facility's life is defined by a securitization. It matures on the earlier of two dates: the closing of a collateralized loan obligation backed by certain of the warehoused loans, or September 28, 2029. Key terms include:
- Draw period: lenders are obligated to make senior advances for six months after closing, with two possible six-month extensions.
- Pricing: adjusted term SOFR plus 1.85% during the reinvestment period, rising to adjusted term SOFR plus 2.35% afterward.
- Flexibility: the subsidiary may prepay advances or reduce commitments at any time without penalty.
- Collateral: the facility is secured by the subsidiary's assets, with borrowing-base advance rates that vary with the asset coverage ratio at each determination date.
Borrowings remain subject to the leverage limits of the Investment Company Act of 1940.
A Larger, Longer Revolver
A day later, the fund signed a third amendment to its senior secured revolving credit agreement with SMBC, originally dated November 17, 2023. The amendment:
- Raises maximum commitments to $1.075 billion from $975 million.
- Moves the end of the revolving period to September 27, 2030 from October 1, 2029, and the final maturity to September 29, 2031 from October 1, 2030.
- Adds a covenant requiring the fund's net worth to stay at or above $250 million while its currently outstanding unsecured notes remain outstanding.
- Resets the minimum shareholders' equity covenant to the greater of $1,809,206,125 or that figure adjusted up by 25% of net proceeds from post-amendment equity sales and down by 25% of amounts spent on tender offer repurchases and other share redemptions.
Other material terms of the facility were unchanged.
The equity covenant ties the lenders' floor to the fund's capital flows. New subscriptions raise the threshold, while repurchases lower it. Taken together, the two agreements extend the maturity of the fund's core credit line and give it a dedicated channel for financing new loans ahead of a contemplated CLO.
