Vista Credit BDC Prices $150M of Notes at 7.75%, 190 bps Above 2025 Issue
Vista Credit Strategic Lending Corp., a nontraded business development company that lends to enterprise software and technology companies, has agreed to sell $150 million of senior unsecured notes at a 7.75% coupon. That is 190 basis points more than it paid on notes with the same maturity date that it sold a year ago.
The Series 2026A notes, sold in a private placement to institutional investors, mature Oct. 2, 2028. Closing is expected Oct. 15, when interest begins to accrue. Vista Credit signed the deal Sept. 29 as a supplement to the master note purchase agreement it entered into in October 2025.
Under that agreement, the BDC sold $200 million of Series 2025 notes. Of that, $125 million carries a 5.85% coupon and matures Oct. 2, 2028, the same date as the new notes. The remaining $75 million pays 6.22% and is due in October 2030. Vista Credit swapped the 2025 notes to floating rates. For one 2028 tranche, that brought its cost to the Secured Overnight Financing Rate plus 2.51%.
The coupon on the new notes can rise by as much as two percentage points if the notes lose their investment-grade rating and Vista Credit’s secured debt ratio exceeds set thresholds. The BDC must also offer to repay the notes at par if certain change-of-control events occur. The notes rank equally with its other unsecured debt. Once the deal closes, Vista Credit will have $350 million of unsecured notes outstanding.
Vista Credit said it will use the proceeds for general corporate purposes, including new investments, repaying existing debt, and paying distributions.
The same day, Vista Credit amended its senior secured revolving credit facility, for which ING Capital LLC is administrative agent. The amendment lets the BDC take on more unsecured debt, including notes with terms of less than three years, up to set caps. The new notes, which run about two years from closing, would fall into that shorter-maturity category.
The notes are the latest in a series of financing moves at the BDC. Vista Credit’s debt rose to $959.4 million at June 30 from $544.8 million at the end of 2025. Over the same period, asset coverage, the regulatory test of assets against borrowings, fell to 196.2% from 273.8%. That remains above the 150% minimum that applies to the BDC. In July, AltsWire reported that the BDC had deployed an upsized credit facility to lift its portfolio to $2.2 billion, with debt-to-equity reaching 1.05x at June 30.
As of Aug. 31, Vista Credit reported a net asset value of $19.26 per share, up from $19.13 at June 30. It also reported total investments and unfunded commitments of $2.2 billion and a debt-to-equity ratio of 0.97x.
Vista Credit’s portfolio is concentrated by design. The BDC said all of its investments are ultimately focused on enterprise software, data, and technology-enabled businesses, and it lists the effect of artificial intelligence on its portfolio companies among its risk factors. That kind of concentration has drawn scrutiny from lenders elsewhere in the market. This week, lenders to First Eagle Private Credit Fund capped that BDC’s exposure to software and related borrowers at 20% of the collateral in a $350 million facility.
Redemption demand at Vista Credit has eased. In the second quarter, shareholders tendered 1.8% of outstanding shares, and the BDC accepted all of them. The prior quarter’s tender was oversubscribed.
Vista Credit is externally managed by Vista Credit BDC Management L.P. and uses the Vista name under a license from Vista Equity Partners Management LLC.
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