Flat Rock Capital Corp., through special purpose unit FRC Funding I LLC, entered into a loan and security agreement under which certain lenders will provide the company with a revolving line of credit.

The loan agreement provides for an initial $20 million in revolver commitments to be available for the company at closing to draw down and repay for three years.

Interest on the amounts borrowed will be paid monthly, in arrears, and will accrue at a rate equivalent to daily LIBOR rate, plus a 2.88% margin.

The loan agreement is effective as of Oct. 12. It will mature four years from closing, unless sooner terminated in accordance with its terms.

State Bank and Trust Co. is the administrative agent and Alostar Capital Finance is the lead arranger and book runner.