The Swiss Helvetia Fund, a non-diversified registered closed-end investment company, entered into a secured credit agreement with U.S. Bank that provides the fund with up to $15 million of funding on a revolving basis, subject to a limit of 10% of the fund’s available assets. Borrowings under the agreement will be for general corporate purposes, including investment. The credit agreement contains customary representation and warranties and events of defaults for credit agreements of this type and is scheduled to mature March 29, 2023. Borrowings under the credit agreement are secured by a lien on substantially all of the fund’s assets.
The credit agreement follows stockholder ratification at the fund’s 2021 annual meeting of stockholders of a non-binding proposal by the fund’s board of directors to ratify approval by stockholders in 2006 to permit the fund to leverage up to 10% of the fund’s total assets (including the amount borrowed). Using leverage is a speculative investment technique and involves certain risks. The fund has not previously used leverage for investment purposes and there can be no assurance that any leverage strategy the fund employs will be successful.
