Hancock Park Cuts Credit Line in Latest Deal with Banc of California
The amended agreement significantly reduces the firm’s credit facility and eases capital maintenance thresholds.
December 30, 2025
Hancock Park Reduces Credit Line and Relaxes Key Financial Covenants
On December 29, Hancock Park Corporate Income, Inc. made a strategic adjustment to its borrowing terms. The company amended its senior secured revolving credit facility with Banc of California, reducing both the size of the credit line and the financial metrics it’s required to maintain.
Here’s what changed. The maximum borrowing capacity under the facility dropped from $15 million to $7.5 million. That’s a significant shift in available leverage. At the same time, Hancock Park lowered two of its financial covenants—both tied to capital strength and earnings. The minimum tangible net asset value was revised down from $12 million to $7.5 million. The quarterly net investment income requirement (after fees) moved from $200,000 to $150,000.
Taken together, these changes give the company more flexibility. Smaller covenant targets mean the firm has a wider buffer in how it operates, particularly around balance sheet fluctuations and quarterly earnings. With a leaner credit line, the company may also be tightening its focus on how it deploys capital, especially for general corporate purposes and investment funding.
While the amendment came with standard fees and costs, the broader outcome is a simpler capital structure that can adapt to changing conditions. The lender—Banc of California, previously Pacific Western Bank—remains in place, continuing to support Hancock Park’s liquidity needs.
No other material updates were disclosed in the report. Hancock Park remains classified as an emerging growth company and continues to operate under the applicable accounting transition provisions.
This revised agreement helps streamline the company’s financial position heading into 2026. By reducing credit limits and aligning covenants with current capital strategy, Hancock Park is positioning itself to stay nimble as markets evolve.
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