On July 8, 2024, Sound Point Meridian Capital, Inc., a closed-end management investment company that has registered as an investment company under the Investment Company Act of 1940, as amended (the ?Company?), entered into a Credit Agreement (the ?CIBC Credit Facility?) with the lenders from time to time party thereto and Canadian Imperial Bank of Commerce (?CIBC?), as administrative agent (in such capacity, the ?Administrative Agent?). Proceeds of the CIBC Credit Facility may be used for working capital and for general corporate purposes. The CIBC Credit Facility allows the Company initially to borrow up to $100 million, subject to certain restrictions, including availability under a borrowing base, which is based upon the value of the eligible portfolio investments, and the Company?s compliance with minimum loan-to-value (?LTV?) ratio.

The amount of permissible borrowings under the CIBC Credit Facility may be increased through an uncommitted accordion feature through which existing and/or new lenders may, at their option, agree to provide additional commitments of up to $25 million, thereby increasing the maximum facility size to $125 million. The CIBC Credit Facility is secured by a perfected first-priority interest in substantially all assets of the Company, including, without limitation, all eligible portfolio investments of the Company, subject to certain exceptions. The CIBC Credit Facility will mature on July 8, 2026 (and may be extended for up to 364 days pursuant to the terms therein) (the ?Maturity Date?) and the availability period with respect to the credit facility under the CIBC Credit Facility will terminate on the earliest of the Maturity Date, the termination in full of the commitments by the Company, or the termination of the commitments by each Lender upon the occurrence and during the continuance of any event of default.

Upon the occurrence of certain material events, including, but not limited to, the Company?s failure to comply with the applicable statutory asset coverage requirement or the LTV ratio exceeding the agreed maximum LTV ratio, the Company will be obligated to make mandatory prepayments under the CIBC Credit Facility out of the proceeds of certain asset sales and/or capital contributions received from its investors. The Company shall repay to the Administrative Agent, on the account of the lenders, on the Maturity Date the aggregate principal amount of loans outstanding on such date, together with all other obligations then outstanding under the CIBC Credit Facility. The Company may borrow amounts in U.S. dollars only.

Amounts drawn under the CIBC Credit Facility will bear interest at either (i) term SOFR plus a margin of 3.75% per annum, or (ii) the alternate base rate plus a margin of 2.75% per annum. The Company may only borrow at term SOFR rate at the time of drawdown, but the borrowings may be converted to bear interest at the alternate base rate under certain conditions.