SOFR-Based Senior Secured Loan

SOFR-based senior secured loan is a senior secured loan whose floating interest rate is calculated using a specified SOFR rate plus a contractual spread, subject to its reset dates, floor, and other terms.

Why this matters to income investors

Benchmark changes can raise or lower a BDC’s interest income. The loan spread, floor, and the BDC’s own borrowing costs determine the effect on earnings.

How to use sofr-based senior secured loan in your research

Read the issuer filing and the governing investment terms, then assess the effect on cash income, recurring earnings, dividend support, and asset value.

This material is general education and information, not individualized investment, tax, or legal advice.