UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 10-QUNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

Form 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the Quarterly Period Ended May 31,November 30, 2021

 

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Commission File No. 814-00732

 

 

SARATOGA INVESTMENT CORP.

(Exact name of registrant as specified in its charter)

 

 

 

Maryland 20-8700615
(State or other jurisdiction of
incorporation or organization)		 (I.R.S. Employer
Identification Number)

 

535 Madison Avenue

New York, New York 10022

(Address of principal executive offices)

 

(212) 906-7800

(Registrant’s telephone number, including area code)

 

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.001 per share SAR The New York Stock Exchange
6.25% Notes due 2025SAFThe New York Stock Exchange
7.25% Notes due 2025 SAK The New York Stock Exchange

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer☐Accelerated filer☐
Non-accelerated filer☒Smaller reporting company☐
  Emerging growth company☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

The number of outstanding common shares of the registrant as of July 7, 2021January 5, 2022 was 11,183,471.12,101,706.

 

 

 

 

TABLE OF CONTENTS

 

   Page
PART I.FINANCIAL INFORMATION 1
    
Item 1.Consolidated Financial Statements 1
    
 Consolidated Statements of Assets and Liabilities as of May 31,November 30, 2021 (unaudited) and February 28, 2021 1
    
 Consolidated Statements of Operations for the three and nine months ended May 31,November 30, 2021 (unaudited) and May 31,November 30, 2020 (unaudited) 2
    
 Consolidated Statements of Changes in Net Assets for three and nine months ended May 31,November 30, 2021 (unaudited) and May 31,November 30, 2020 (unaudited) 3
    
 

Consolidated Statements of Cash Flows for the threenine months ended May 31,November 30, 2021 (unaudited) and May 31,November 30, 2020 (unaudited)

4
Consolidated Schedules of Investments as of May 31,November 30, 2021 (unaudited) and February 28, 2021 54
    
 Notes to Consolidated Financial Statements as of May 31,November 30, 2021 (unaudited) 1715
    
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations 7570
    
Item 3.Quantitative and Qualitative Disclosures About Market Risk 110103
Item 4.Controls and Procedures104
    
Item 4.PART II.Controls and ProceduresOTHER INFORMATION 111105
    
PART II.Item 1.OTHER INFORMATIONLegal Proceedings 105
Item 1A.Risk Factors105
    
Item 1.Legal Proceedings112
Item 1A.Risk Factors112
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds 112106
Item 3.Defaults Upon Senior Securities106
    
Item 3.4.Defaults Upon Senior SecuritiesMine Safety Disclosures 112106
    
Item 4.5.Mine Safety DisclosuresOther Information 112106
    
Item 5.Other Information112
Item 6.Exhibits 113107
   
Signatures 116109

 

i

 

 

PART I. FINANCIAL INFORMATION

 

Item 1. Consolidated Financial Statements

 

Saratoga Investment Corp.

Consolidated Statements of Assets and Liabilities

(unaudited)

 

 May 31, 2021  February 28, 2021  November 30,
2021		 February 28,
2021
 (unaudited)     (unaudited)  
ASSETS         
Investments at fair value         
Non-control/Non-affiliate investments (amortized cost of $546,808,095 and $471,328,212, respectively) $550,875,264  $469,946,494 
Affiliate investments (amortized cost of $34,774,328 and $17,331,707, respectively)  39,872,709   19,367,740 
Control investments (amortized cost of $75,078,830 and $61,353,761, respectively)  87,024,892   64,998,481 
Total investments at fair value (amortized cost of $656,661,253 and $550,013,680, respectively)  677,772,865   554,312,715 
Non-control/Non-affiliate investments (amortized cost of $536,539,603 and $471,328,212, respectively) $546,750,922  $469,946,494 
Affiliate investments (amortized cost of $40,075,633 and $17,331,707, respectively)  40,442,980   19,367,740 
Control investments (amortized cost of $66,732,240 and $61,353,761, respectively)  74,599,110   64,998,481 
Total investments at fair value (amortized cost of $643,347,476 and $550,013,680, respectively)  661,793,012   554,312,715 
Cash and cash equivalents  317,932   18,828,047   120,881,990   18,828,047 
Cash and cash equivalents, reserve accounts  19,659,681   11,087,027   23,186,481   11,087,027 
Interest receivable (net of reserve of $588,904 and $1,152,086, respectively)  6,622,330   4,223,630 
Interest receivable (net of reserve of $0 and $1,152,086, respectively)  4,566,798   4,223,630 
Due from affiliate (See Note 6)  2,600,000   2,719,000   -   2,719,000 
Management fee receivable  852,876   34,644   364,715   34,644 
Other assets  848,278   947,315   920,315   947,315 
Total assets $708,673,962  $592,152,378  $811,713,311  $592,152,378 
                
LIABILITIES                
Revolving credit facility $39,000,000  $-  $12,500,000  $- 
Deferred debt financing costs, revolving credit facility  (715,161)  (639,983)  (1,291,999)  (639,982)
SBA debentures payable  168,000,000   158,000,000   207,000,000   158,000,000 
Deferred debt financing costs, SBA debentures payable  (3,397,674)  (2,642,622)  (4,302,019)  (2,642,622)
6.25% Notes Payable 2025  60,000,000   60,000,000   -   60,000,000 
Deferred debt financing costs, 6.25% notes payable 2025  (1,581,383)  (1,675,064)  -   (1,675,064)
7.25% Notes Payable 2025  43,125,000   43,125,000   43,125,000   43,125,000 
Deferred debt financing costs, 7.25% notes payable 2025  (1,319,867)  (1,401,307)  (1,157,871)  (1,401,307)
7.75% Notes Payable 2025  5,000,000   5,000,000   5,000,000   5,000,000 
Deferred debt financing costs, 7.75% notes payable 2025  (225,397)  (239,222)  (197,899)  (239,222)
4.375% Notes Payable 2026  50,000,000   -   175,000,000   - 
Deferred debt financing costs,  (1,205,274)  - 
Premium on 4.375% notes payable 2026  1,157,187   - 
Deferred debt financing costs, 4.375% notes payable 2026  (3,603,177)  - 
6.25% Notes Payable 2027  15,000,000   15,000,000   15,000,000   15,000,000 
Deferred debt financing costs, 6.25% notes payable 2027  (469,585)  (476,820)  (433,835)  (476,820)
Base management and incentive fees payable  10,727,948   6,556,674   12,081,266   6,556,674 
Deferred tax liability  2,180,727   1,922,664   1,053,564   1,922,664 
Accounts payable and accrued expenses  1,986,517   1,750,267   1,961,075   1,750,266 
Current income tax payable  2,833,988   - 
Interest and debt fees payable  1,763,342   2,645,784   3,096,334   2,645,784 
Directors fees payable  92,000   70,500   -   70,500 
Due to manager  368,013   279,065   289,952   279,065 
Excise tax payable  -   691,672   -   691,672 
Total liabilities  388,329,206   287,966,608   469,111,566   287,966,608 
                
Commitments and contingencies (See Note 8)                
                
NET ASSETS                
Common stock, par value $0.001, 100,000,000 common shares authorized, 11,159,995 and 11,161,416 common shares issued and outstanding, respectively  11,160   11,161 
Common stock, par value $0.001, 100,000,000 common shares        
authorized, 11,747,004 and 11,161,416 common shares issued and outstanding, respectively  11,747   11,161 
Capital in excess of par value  304,784,840   304,874,957   321,559,189   304,874,957 
Total distributable earnings (deficit)  15,548,756   (700,348)  21,030,809   (700,348)
Total net assets  320,344,756   304,185,770   342,601,745   304,185,770 
Total liabilities and net assets $708,673,962  $592,152,378  $811,713,311  $592,152,378 
NET ASSET VALUE PER SHARE $28.70  $27.25  $29.17  $27.25 

 

See accompanying notes to consolidated financial statements.

 


Saratoga Investment Corp.

Consolidated Statements of Operations

(unaudited)

 

 For the three months ended  For the three months ended For the nine months ended
 May 31, 2021  May 31, 2020  November 30,
2021		 November 30,
2020		 November 30,
2021		 November 30,
2020
INVESTMENT INCOME                     
Interest from investments                     
Interest income:                     
Non-control/Non-affiliate investments $11,236,737  $9,955,562  $11,152,851  $10,422,586  $33,687,612  $30,585,868 
Affiliate investments  340,512   398,370   1,055,947   418,418   2,332,967   1,204,840 
Control investments  1,854,985   1,133,584   1,702,096   1,654,359   5,616,182   4,037,915 
Payment-in-kind interest income:                        
Non-control/Non-affiliate investments  176,766   581,946   115,724   214,422   1,002,819   1,125,306 
Affiliate investments  -   46,223   -   49,333   -   143,574 
Control investments  77,675   34,782   110,737   44,896   298,383   117,449 
Total interest from investments  13,686,675   12,150,467   14,137,355   12,804,014   42,937,963   37,214,952 
Interest from cash and cash equivalents  522   11,796   968   770   2,561   14,176 
Management fee income  818,232   634,572   815,739   623,817   2,448,593   1,883,825 
Dividend Income*  537,621   12,799   1,595,119   12,799 
Structuring and advisory fee income  1,301,875   313,306   582,500   545,354   2,922,625   1,798,660 
Other income  1,008,686   187,000 
Other income*  427,921   296,003   1,852,916   511,063 
Total investment income  16,815,990   13,297,141   16,502,104   14,282,757   51,759,777   41,435,475 
                        
OPERATING EXPENSES                        
Interest and debt financing expenses  4,340,912   2,563,876   4,842,900   3,559,870   14,367,996   9,452,193 
Base management fees  2,758,908   2,160,528   2,923,676   2,324,564   8,684,681   6,694,144 
Incentive management fees expense (benefit)  5,262,536   (1,858,310)  2,417,628   2,295,000   9,698,327   1,966,367 
Professional fees  507,061   386,888   (104,438)  502,979   863,376   1,257,420 
Administrator expenses  693,750   556,250   750,000   693,750   2,156,250   1,852,083 
Insurance  86,318   67,726   85,399   67,010   258,035   202,463 
Directors fees and expenses  92,000   60,000   73,096   60,000   265,596   195,000 
General & administrative  490,651   350,814   357,727   278,734   1,301,603   963,372 
Income tax expense (benefit)  27,919   (8,945)  (40,519)  29,748   18,082   28,304 
Total operating expenses  14,260,055   4,278,827   11,305,469   9,811,655   37,613,946   22,611,346 
NET INVESTMENT INCOME  2,555,935   9,018,314   5,196,635   4,471,102   14,145,831   18,824,129 
                        
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS                        
Net realized gain (loss) from investments:                        
Non-control/Non-affiliate investments  1,910,141   8,480   2,588,468   1,798   6,140,073   22,207 
Affiliate investments   7,328,457   -   7,328,457   - 
Control investments  -   -   (139,867)  - 
Net realized gain (loss) from investments  1,910,141   8,480   9,916,925   1,798   13,328,663   22,207 
Income tax (provision) benefit from realized gain on investments  (2,447,173)  (3,895,354)  (2,896,056)  (3,895,354)
Net change in unrealized appreciation (depreciation) on investments:                        
Non-control/Non-affiliate investments  5,448,887   (24,422,894)  3,887,216   4,348,888   11,593,037   (9,472,477)
Affiliate investments  3,062,348   (2,444,252)  (7,412,673)  385,414   (1,668,686)  (1,421,606)
Control investments  8,301,342   (5,083,223)  (2,517,159)  1,264,528   4,222,150   1,522,945 
Net change in unrealized appreciation (depreciation) on investments  16,812,577   (31,950,369)  (6,042,616)  5,998,830   14,146,501   (9,371,138)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  (230,144)  267,740   2,480,465   (210,057)  921,610   (58,838)
Net realized and unrealized gain (loss) on investments  18,492,574   (31,674,149)  3,907,601   1,895,217   25,500,718   (13,303,123)
Realized losses on extinguishment of debt  (764,123)  -   (2,316,263)  - 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $21,048,509  $(22,655,835) $8,340,113  $6,366,319  $37,330,286  $5,521,006 
                        
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE $1.88  $(2.02) $0.73  $0.57  $3.30  $0.49 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED  11,170,045   11,217,545   11,450,861   11,169,817   11,312,991   11,198,287 

*Certain prior period amounts have been reclassified to conform to current period presentation.

See accompanying notes to consolidated financial statements.

2

Saratoga Investment Corp.

Consolidated Statements of Changes in Net Assets

(unaudited)

  For the nine months ended
  November 30,
2021		 November 30,
2020
INCREASE (DECREASE) FROM OPERATIONS:    
Net investment income $14,145,831  $18,824,129 
Net realized gain from investments  13,328,663   22,207 
Realized losses on extinguishment of debt  (2,316,263)  - 
Income tax (provision) benefit from realized gain on investments  (2,896,056)  (3,895,354)
Net change in unrealized appreciation (depreciation) on investments  14,146,501   (9,371,138)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  921,610   (58,838)
Net increase (decrease) in net assets resulting from operations  37,330,286   5,521,006 
         
DECREASE FROM SHAREHOLDER DISTRIBUTIONS:        
Total distributions to shareholders  (15,599,129)  (9,068,484)
Net decrease in net assets from shareholder distributions  (15,599,129)  (9,068,484)
         
CAPITAL SHARE TRANSACTIONS:        
Proceeds from issuance of common stock  15,320,818   - 
Stock dividend distribution  2,760,278   1,580,919 
Repurchases of common stock  (1,252,143)  (2,464,661)
Repurchase fees  (992)  (2,743)
Offering costs  (143,143)  - 
Net increase (decrease) in net assets from capital share transactions  16,684,818   (886,485)
Total increase (decrease) in net assets  38,415,975   (4,433,963)
Net assets at beginning of period  304,185,770   304,286,853 
Net assets at end of period $342,601,745  $299,852,890 

 

See accompanying notes to consolidated financial statements.

 


Saratoga Investment Corp.

Consolidated Statements of Changes in Net AssetsCash Flows

(unaudited)

 

  For the three months ended 
  May 31, 2021  May 31, 2020 
INCREASE (DECREASE) FROM OPERATIONS:      
Net investment income $2,555,935  $9,018,314 
Net realized gain from investments  1,910,141   8,480 
Net change in unrealized appreciation (depreciation) on investments  16,812,577   (31,950,369)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  (230,144)  267,740 
Net increase (decrease) in net assets resulting from operations  21,048,509   (22,655,835)
         
DECREASE FROM SHAREHOLDER DISTRIBUTIONS:        
Total distributions to shareholders  (4,799,405)  - 
Net decrease in net assets from shareholder distributions  (4,799,405)  - 
         
CAPITAL SHARE TRANSACTIONS:        
Stock dividend distribution  914,102   - 
Repurchases of common stock  (1,003,420)  - 
Repurchase fees  (800)  - 
Net increase in net assets from capital share transactions  (90,118)  - 
Total increase (decrease) in net assets  16,158,986   (22,655,835)
Net assets at beginning of period  304,185,770   304,286,853 
Net assets at end of period $320,344,756  $281,631,018 
  For the nine months ended
  November 30,
2021		 November 30,
2020
Operating activities    
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $37,330,286  $5,521,006 
ADJUSTMENTS TO RECONCILE NET INCREASE (DECREASE) IN NET ASSETS RESULTING        
FROM OPERATIONS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:        
Payment-in-kind and other adjustments to cost  (1,120,081)  1,402,751 
Net accretion of discount on investments  (1,368,430)  (964,524)
Amortization of deferred debt financing costs  1,544,478   992,592 
Realized losses on extinguishment of debt  2,316,263   - 
Income tax expense (benefit)  18,082   28,304 
Net realized (gain) loss from investments  (13,328,663)  (22,207)
Net change in unrealized (appreciation) depreciation on investments  (14,146,501)  9,371,138 
Net change in provision for deferred taxes on unrealized appreciation (depreciation) on investments  (921,610)  58,838 
Proceeds from sales and repayments of investments  216,236,729   50,928,681 
Purchases of investments  (293,753,351)  (122,027,366)
(Increase) decrease in operating assets:        
Interest receivable  (343,168)  618,279 
Due from affiliate  2,719,000   - 
Management and incentive fee receivable  (330,071)  (12,049)
Other assets  (54,299)  (59,043)
Increase (decrease) in operating liabilities:        
Base management and incentive fees payable  5,524,592   (11,024,296)
Accounts payable and accrued expenses  210,809   (198,572)
Current tax payable  2,833,988   - 
Interest and debt fees payable  450,550   (1,302,104)
Directors fees payable  (70,500)  (17,000)
Excise tax payable  (691,672)  - 
Due to manager  10,887   (265,499)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES  (56,932,682)  (66,971,071)
         
Financing activities        
Borrowings on debt  135,000,000   26,000,000 
Paydowns on debt  (73,500,000)  - 
Issuance of notes  175,000,000   48,125,000 
Repayments of notes  (60,000,000)  - 
Payments of deferred debt financing costs  (7,768,038)  (2,752,425)
Premium on debt issuance, 4.375% notes 2026  1,250,000   - 
Proceeds from issuance of common stock  15,320,818   - 
Payments of cash dividends  (12,838,851)  (7,487,565)
Repurchases of common stock  (1,252,143)  (2,464,661)
Repurchases fees  (992)  (2,743)
Payments of offering costs  (124,714)  - 
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES  171,086,080   61,417,606 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS  114,153,398   (5,553,465)
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD  29,915,074   39,450,352 
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD $144,068,472  $33,896,887 
         
Supplemental information:        
Interest paid during the period $12,372,967  $9,761,705 
Cash paid for taxes  727,469   4,103,200 
Supplemental non-cash information:        
Payment-in-kind interest income and other adjustments to cost  1,120,081   (1,402,751)
Net accretion of discount on investments  1,368,430   964,524 
Amortization of deferred debt financing costs  1,544,478   992,592 
Stock dividend distribution  2,760,278   1,580,919 

 

See accompanying notes to consolidated financial statements.

 


Saratoga Investment Corp.

Consolidated Statements of Cash Flows

(unaudited)

  For the three months ended 
  May 31, 2021  May 31, 2020 
Operating activities      
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $21,048,509  $(22,655,835)
ADJUSTMENTS TO RECONCILE NET INCREASE (DECREASE) IN NET ASSETS RESULTING        
FROM OPERATIONS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:        
Payment-in-kind and other adjustments to cost  (191,699)  703,636 
Net accretion of discount on investments  (321,106)  (312,430)
Amortization of deferred debt financing costs  470,314   272,683 
Income tax expense (benefit)  27,919   (8,945)
Net realized (gain) loss from investments  (1,910,141)  (8,480)
Net change in unrealized (appreciation) depreciation on investments  (16,812,577)  31,950,369 
Net change in provision for deferred taxes on unrealized appreciation (depreciation) on investments  230,144   (267,740)
Proceeds from sales and repayments of investments  14,941,409   9,350,378 
Purchases of investments  (119,166,038)  (38,998,731)
(Increase) decrease in operating assets:        
Interest receivable  (2,398,700)  501,475 
Due from affiliate  119,000   - 
Management and incentive fee receivable  (818,232)  (13,381)
Other assets  78,581   40,232 
Increase (decrease) in operating liabilities:        
Base management and incentive fees payable  4,171,274   (12,247,640)
Accounts payable and accrued expenses  236,250   (132,244)
Interest and debt fees payable  (882,442)  (1,239,086)
Directors fees payable  21,500   1,500 
Excise tax payable  (691,672)  - 
Due to manager  88,948   (104,112)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES  (101,758,759)  (33,168,351)
         
Financing activities        
Borrowings on debt  49,000,000   20,000,000 
Paydowns on debt  -   (487,000)
Issuance of notes  50,000,000   - 
Repayments of notes  -   - 
Payments of deferred debt financing costs  (2,289,179)  - 
Proceeds from issuance of common stock  -   - 
Payments of cash dividends  (3,885,303)  - 
Repurchases of common stock  (1,003,420)  - 
Repurchases fees  (800)  - 
Payments of offering costs  -   - 
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES  91,821,298   19,513,000 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS  (9,937,461)  (13,655,351)
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD  29,915,074   39,450,352 
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD $19,977,613  $25,795,001 
         
Supplemental information:        
Interest paid during the period $4,753,043  $3,530,278 
Cash paid for taxes  692,740   1,006 
Supplemental non-cash information:        
Payment-in-kind interest income and other adjustments to cost  191,699   (703,636)
Net accretion of discount on investments  321,106   312,430 
Amortization of deferred debt financing costs  470,314   272,683 
Stock dividend distribution  914,102   - 

See accompanying notes to consolidated financial statements.


Saratoga Investment Corp.

Consolidated Schedule of Investments

May 31,November 30, 2021

(unaudited)(Unaudited)

 

Company Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of Shares		  Cost  Fair Value
(c)		  % of
Net Assets		 
Non-control/Non-affiliate investments - 171.9% (b)                      
Targus Holdings, Inc. (d), (h) Consumer Products Common Stock 12/31/2009  210,456   1,589,630  $522,061   0.2%
    Total Consumer Products        1,589,630   522,061   0.2%
My Alarm Center, LLC (k) Consumer Services Preferred Equity Class A Units
8.00% PIK		 7/14/2017  2,227   2,357,879   -   0.0%
My Alarm Center, LLC (h) Consumer Services Preferred Equity Class B Units 7/14/2017  1,797   1,796,880   -   0.0%
My Alarm Center, LLC (h) Consumer Services Preferred Equity Class Z Units 9/12/2018  676   712,343   -   0.0%
My Alarm Center, LLC (h) Consumer Services Common Stock 7/14/2017  96,224   -   -   0.0%
    Total Consumer Services        4,867,102   -   0.0%
Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020  226,782   1,050,000   3,107,700   1.0%
    Total Corporate Education Software        1,050,000   3,107,700   1.0%
Passageways, Inc. Corporate Governance First Lien Term Loan
(3M USD LIBOR+7.00%), 8.75% Cash, 12/31/2025		 7/5/2018 $5,000,000  $4,972,664   5,050,000   1.6%
Passageways, Inc. (j) Corporate Governance Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 8.75% Cash, 12/31/2025		 1/3/2020 $5,000,000   4,981,026   5,050,000   1.6%
Passageways, Inc. (h) Corporate Governance Series A Preferred Stock 7/5/2018  2,027,205   1,000,000   7,498,384   2.3%
    Total Corporate Governance        10,953,690   17,598,384   5.5%
New England Dental Partners Dental Practice Management First Lien Term Loan
(3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025		 11/25/2020 $6,555,000   6,496,025   6,632,349   2.1%
New England Dental Partners (j) Dental Practice Management Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025		 11/25/2020 $2,150,000   2,130,433   2,175,370   0.7%
    Total Dental Practice Management        8,626,458   8,807,719   2.8%
PDDS Buyer, LLC Dental Practice Management Software First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024		 7/15/2019 $14,000,000   13,904,721   14,278,600   4.5%
PDDS Buyer, LLC Dental Practice Management Software Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024		 7/15/2019 $7,000,000   6,943,964   7,139,300   2.2%
PDDS Buyer, LLC (h) Dental Practice Management Software Series A-1 Preferred Shares 8/10/2020  1,755,831   2,000,000   2,472,430   0.8%
    Total Dental Practice Management Software        22,848,685   23,890,330   7.5%
C2 Educational Systems (d) Education Services First Lien Term Loan
(3M USD LIBOR+8.50%), 10.00% Cash, 5/31/2023		 5/31/2017 $18,500,000   18,474,451   16,033,950   5.0%
C2 Education Systems, Inc. (h) Education Services Series A-1 Preferred Stock 5/18/2021  3,127   499,904   502,621   0.2%
Texas Teachers of Tomorrow, LLC (h), (i) Education Services Common Stock 12/2/2015  750   750,000   1,163,583   0.4%
Texas Teachers of Tomorrow, LLC (d) Education Services First Lien Term Loan
(3M USD LIBOR+7.25%), 9.75% Cash, 6/28/2024		 6/28/2019 $25,763,417   25,581,181   25,737,653   8.0%
Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Non-control/Non-affiliate investments - 159.6% (b)                      
Targus Holdings, Inc. (h) Consumer Products Common Stock 12/31/2009  210,456  $1,589,630  $531,247   0.2%
    Total Consumer Products        1,589,630   531,247   0.2%
Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020  226,782   475,698   3,446,921   1.0%
    Total Corporate Education Software        475,698   3,446,921   1.0%
GreyHeller LLC (h) Cyber Security Common Stock 11/10/2021  6,742,392   1,635,704   1,635,704   0.5%
    Total Cyber Security        1,635,704   1,635,704   0.5%
New England Dental Partners Dental Practice Management First Lien Term Loan
(3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025		 11/25/2020 $6,555,000   6,499,951   6,461,264   1.9%
New England Dental Partners (j) Dental Practice Management Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025		 11/25/2020 $2,150,000   2,131,736   2,054,905   0.6%
    Total Dental Practice Management        8,631,687   8,516,169   2.5%
PDDS Buyer, LLC (d) Dental Practice Management Software First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024		 7/15/2019 $14,000,000   13,915,232   14,140,000   4.1%
PDDS Buyer, LLC Dental Practice Management Software Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024		 7/15/2019 $7,000,000   6,950,156   7,070,000   2.1%
PDDS Buyer, LLC (h) Dental Practice Management Software Series A-1 Preferred Shares 8/10/2020  1,755,831   2,000,000   5,190,688   1.5%
    Total Dental Practice Management Software        22,865,388   26,400,688   7.7%
C2 Educational Systems Education Services First Lien Term Loan
(3M USD LIBOR+8.50%), 10.00% Cash, 5/31/2023		 5/31/2017 $18,500,000   18,478,932   17,380,750   5.1%
C2 Education Systems, Inc. (h) Education Services Series A-1 Preferred Stock 5/18/2021  3,127   499,904   515,246   0.2%
Zollege PBC Education Services First Lien Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 5/11/2026		 5/11/2021 $16,000,000   15,869,962   15,891,200   4.6%
Zollege PBC (j) Education Services Delayed Draw Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 5/11/2026		 5/11/2021 $-   -   -   0.0%
Zollege PBC (h) Education Services Class A Units 5/11/2021  250,000   250,000   226,054   0.1%
    Total Education Services        35,098,798   34,013,250   10.0%
Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018  3,065   3,969,291   6,622,375   1.9%
Identity Automation Systems (d) Education Software First Lien Term Loan
(3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024		 8/25/2014 $17,050,625   17,050,625   17,050,625   5.0%
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014  232,616   232,616   770,329   0.2%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020  43,715   171,571   196,926   0.1%
GoReact Education Software First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/17/2020 $5,000,000   4,949,763   5,000,000   1.5%
GoReact Education Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/17/2020 $2,000,000   2,000,000   2,000,000   0.6%
      Total Education Software        28,373,866   31,640,255   9.3%
Top Gun Pressure Washing, LLC Facilities Maintenance First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 12/31/2025		 8/12/2019 $5,000,000   4,966,580   5,019,500   1.5%
Top Gun Pressure Washing, LLC (j) Facilities Maintenance Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 12/31/2025		 8/12/2019 $5,500,000   5,453,313   5,521,450   1.7%
TG Pressure Washing Holdings, LLC (f), (h) Facilities Maintenance Preferred Equity 8/12/2019  488,148   488,148   454,493   0.1%
      Total Facilities Maintenance        10,908,041   10,995,443   3.3%
Davisware, LLC Field Service Management First Lien Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $3,000,000   2,981,626   3,031,800   0.9%
Davisware, LLC Field Service Management Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $977,790   975,139   988,155   0.3%
    Total Field Service Management        3,956,765   4,019,955   1.2%
GDS Software Holdings, LLC  (h) Financial Services Common Stock Class A Units 8/23/2018  250,000   250,000   510,747   0.1%
    Total Financial Services        250,000   510,747   0.1%
Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock 1/15/2016  5,000   380,353   644,612   0.2%
    Total Healthcare Products Manufacturing        380,353   644,612   0.2%
Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018  400,000   400,000   948,130   0.3%
Axiom Purchaser, Inc. (d) Healthcare Services First Lien Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023		 6/19/2018 $10,000,000   9,967,791   10,059,000   2.9%
Axiom Purchaser, Inc. (d) Healthcare Services Delayed Draw Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023		 6/19/2018 $6,000,000   5,972,792   6,035,400   1.8%
ComForCare Health Care (d) Healthcare Services First Lien Term Loan
(3M USD LIBOR+7.25%), 8.25% Cash, 1/31/2025		 1/31/2017 $25,000,000   24,887,992   25,000,000   7.3%
      Total Healthcare Services        41,228,575   42,042,530   12.3%

 


Company Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Zollege PBC Education Services First Lien Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 5/11/2026		 5/11/2021 $16,000,000   15,860,000   15,840,000   4.9%
Zollege PBC (j) Education Services Delayed Draw Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 5/11/2026		 5/11/2021 $-   -   -   0.0%
Zollege PBC (h) Education Services Class A Units 5/11/2021  250,000   250,000   250,000   0.1%
    Total Education Services        61,415,536   59,527,807   18.6%
Destiny Solutions Inc. (d) Education Software First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 10/24/2024		 5/16/2018 $43,500,000   43,240,511   43,500,000   13.6%
Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018  2,342   2,468,464   3,894,965   1.2%
Identity Automation Systems (d) Education Software First Lien Term Loan
(3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024		 8/25/2014 $17,203,750   17,203,750   17,203,750   5.4%
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014  232,616   232,616   697,848   0.2%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020  43,715   171,571   189,269   0.1%
GoReact Education Software First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/17/2020 $5,000,000   4,944,183   5,100,000   1.6%
GoReact (j) Education Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/17/2020 $1,200,000   1,200,000   1,224,000   0.4%
Kev Software Inc. (a) Education Software First Lien Term Loan
(1M USD LIBOR+8.63%), 9.63% Cash, 9/13/2023		 9/13/2018 $17,701,539   17,624,605   17,889,175   5.6%
    Total Education Software        87,085,700   89,699,007   28.1%
Top Gun Pressure Washing, LLC Facilities Maintenance First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 12/31/2025		 8/12/2019 $5,000,000   4,964,114   4,958,500   1.5%
Top Gun Pressure Washing, LLC (j) Facilities Maintenance Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 12/31/2025		 8/12/2019 $5,500,000   5,449,645   5,454,350   1.8%
TG Pressure Washing Holdings, LLC (f), (h) Facilities Maintenance Preferred Equity 8/12/2019  488,148   488,148   318,329   0.1%
    Total Facilities Maintenance        10,901,907   10,731,179   3.4%
Davisware, LLC Field Service Management First Lien Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $3,000,000   2,979,495   3,032,400   0.9%
Davisware, LLC Field Service Management Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $977,790   974,822   988,350   0.3%
    Total Field Service Management        3,954,317   4,020,750   1.2%
GDS Software Holdings, LLC (h) Financial Services Common Stock Class A Units 8/23/2018  250,000   250,000   445,913   0.1%
    Total Financial Services        250,000   445,913   0.1%
Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock 1/15/2016  5,000   380,353   564,042   0.2%
    Total Healthcare Products Manufacturing        380,353   564,042   0.2%
Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018  400,000   400,000   900,986   0.3%
Axiom Purchaser, Inc. (d) Healthcare Services First Lien Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023		 6/19/2018 $10,000,000   9,959,761   10,059,000   3.1%
Axiom Purchaser, Inc. (d) Healthcare Services Delayed Draw Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023		 6/19/2018 $6,000,000   5,965,638   6,035,400   1.9%
ComForCare Health Care Healthcare Services First Lien Term Loan
(3M USD LIBOR+7.75%), 8.75% Cash, 1/31/2025		 1/31/2017 $25,000,000   24,875,298   24,957,500   7.8%
    Total Healthcare Services        41,200,697   41,952,886   13.1%
Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019  2,241   2,310,929   2,966,929   0.9%
HemaTerra Holding Company, LLC (d) Healthcare Software First Lien Term Loan
(3M USD LIBOR+6.75%), 8.25% Cash, 1/31/2026		 4/15/2019 $36,000,000   35,687,524   35,949,600   10.5%
HemaTerra Holding Company, LLC (d), (j) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+6.75%), 8.25% Cash, 1/31/2026		 4/15/2019 $12,000,000   11,926,185   11,983,200   3.5%
Procurement Partners, LLC Healthcare Software First Lien Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 11/12/2025		 11/12/2020 $35,125,000   34,806,640   35,005,575   10.2%
Procurement Partners, LLC (j) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 11/12/2025		 11/12/2020 $-   -   -   0.0%
Procurement Partners Holdings LLC (h) Healthcare Software Class A Units   11/12/2020  550,986   550,986   611,676   0.2%
    Total Healthcare Software        85,282,264   86,516,980   25.3%
Roscoe Medical, Inc. (h) Healthcare Supply Common Stock 3/26/2014  5,081   508,077   88,322   0.0%
Roscoe Medical, Inc. Healthcare Supply Second Lien Term Loan
11.25% Cash, 3/31/2022		 3/26/2014 $5,141,413   5,141,413   5,141,413   1.5%
      Total Healthcare Supply        5,649,490   5,229,735   1.5%
Book4Time, Inc. (a), (d) Hospitality/Hotel First Lien Term Loan
(3M USD LIBOR+8.50%), 10.25%, 12/22/2025		 12/22/2020 $3,136,517   3,109,884   3,135,890   0.9%
Book4Time, Inc. (a), (j) Hospitality/Hotel Delayed Draw Term Loan
(3M USD LIBOR+8.50%), 10.25%, 12/22/2025		 12/22/2020 $-   -   -   0.0%
Book4Time, Inc. (a), (h), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020  200,000   156,826   188,508   0.1%
Knowland Group, LLC Hospitality/Hotel Second Lien Term Loan
(3M USD LIBOR+8.00%), 10.00% Cash/1.00% PIK, 5/9/2024		 11/9/2018 $15,838,513   15,838,513   10,448,667   3.0%
Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan
(1M USD LIBOR+8.00%), 9.00% Cash, 9/2/2026		 4/27/2020 $6,000,000   5,948,723   5,940,000   1.7%
Sceptre Hospitality Resources, LLC (j) Hospitality/Hotel Delayed Draw Term Loan
(1M USD LIBOR+8.00%), 9.00% Cash, 9/2/2026		 9/2/2021 $-   -   -   0.0%
    Total Hospitality/Hotel        25,053,946   19,713,065   5.7%
Granite Comfort, LP HVAC Services and Sales First Lien Term Loan
(1M USD LIBOR+8.00%), 9.00% Cash, 11/16/2025		 11/16/2020 $28,000,000   27,748,761   27,935,600   8.2%
Granite Comfort, LP (j) HVAC Services and Sales Delayed Draw Term Loan
(1M USD LIBOR+8.00%), 9.00% Cash, 11/16/2025		 11/16/2020 $-   -   -   0.0%
      Total HVAC Services and Sales        27,748,761   27,935,600   8.2%
AgencyBloc, LLC Insurance Software First Lien Term Loan
(3M USD BSBY+8.00%), 9.00% Cash, 10/1/2026		 10/1/2021 $9,000,000   8,921,624   8,920,800   2.6%
AgencyBloc, LLC (h) Insurance Software Class A Units 10/1/2021  2,000,000   2,000,000   2,000,000   0.6%
    Total Insurance Software        10,921,624   10,920,800   3.2%
Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan
(3M USD LIBOR+6.50%), 8.00% Cash, 3/6/2025		 3/6/2013 $5,386,146   5,386,146   5,386,146   1.6%
Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015  343   -   3,004,804   0.9%
      Total Industrial Products        5,386,146   8,390,950   2.5%
LogicMonitor, Inc. (d) IT Services First Lien Term Loan
(3M USD LIBOR+5.00), 6.00% Cash, 5/17/2023		 3/20/2020 $33,000,000   32,846,165   33,000,000   9.6%
       Total IT Services        32,846,165   33,000,000   9.6%
inMotionNow, Inc. Marketing Services First Lien Term Loan
(3M USD LIBOR+7.50), 10.00% Cash, 5/15/2024		 5/15/2019 $12,200,000   12,132,519   12,404,960   3.6%
inMotionNow, Inc. (d) Marketing Services Delayed Draw Term Loan
(3M USD LIBOR+7.50)  10.00% Cash, 5/15/2024		 5/15/2019 $5,000,000   4,969,883   5,084,000   1.5%
    Total Marketing Services        17,102,402   17,488,960   5.1%
Chronus LLC Mentoring Software First Lien Term Loan
(3M USD LIBOR+5.25), 6.25% Cash, 8/26/2026		 8/26/2021 $15,000,000   14,854,465   14,850,000   4.3%
Chronus LLC (h) Mentoring Software Series A Preferred Stock 8/26/2021  3,000   3,000,000   3,000,000   0.9%
      Total Mentoring Software        17,854,465   17,850,000   5.2%
Omatic Software, LLC Non-profit Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.75% Cash/1.00% PIK, 5/29/2023		 5/29/2018 $8,230,092   8,184,696   8,280,296   2.4%
      Total Non-profit Services        8,184,696   8,280,296   2.4%
Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note
(3M USD LIBOR+8.50%), 10.00% Cash, 12/31/2023		 12/28/2012 $3,300,000   3,300,000   3,289,440   1.0%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests                          
Expires 12/28/2022		 12/28/2012  49,318   400,000   448,028   0.1%
    Total Office Supplies        3,700,000   3,737,468   1.1%

 


Company Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Greenphire, Inc. (h), (i) Healthcare Software Series A Preferred Stock 3/24/2021  102   10,181,700   10,381,661   3.2%
TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019  2,241   2,310,929   2,816,291   0.9%
HemaTerra Holding Company, LLC Healthcare Software First Lien Term Loan
(3M USD LIBOR+6.75%), 8.25% Cash, 1/31/2026		 4/15/2019 $36,000,000   35,660,359   35,776,800   11.2%
HemaTerra Holding Company, LLC (d), (j) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+6.75%), 8.25% Cash, 1/31/2026		 4/15/2019 $12,000,000   11,919,627   11,925,600   3.7%
Procurement Partners, LLC Healthcare Software First Lien Term Loan
(3M USD LIBOR+6.50%), 7.50% Cash, 11/12/2025		 11/12/2020 $8,000,000   7,928,456   8,023,200   2.5%
Procurement Partners, LLC (j) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 7.50% Cash, 11/12/2025		 11/12/2020 $-   -   -   0.0%
Procurement Partners Holdings LLC (h) Healthcare Software   11/12/2020  300,000   300,000   339,111   0.1%
    Total Healthcare Software        68,301,071   69,262,663   21.6%
Roscoe Medical, Inc. (d), (h) Healthcare Supply Common Stock 3/26/2014  5,081   508,077   187,153   0.1%
Roscoe Medical, Inc. Healthcare Supply Second Lien Term Loan
11.25% Cash, 6/28/2021		 3/26/2014 $5,141,413   5,141,413   5,141,413   1.6%
    Total Healthcare Supply        5,649,490   5,328,566   1.7%
Book4Time, Inc. (a) Hospitality/Hotel First Lien Term Loan
(3M USD LIBOR+8.50%), 10.25%, 12/22/2025		 12/22/2020 $3,136,517   3,108,278   3,105,152   1.0%
Book4Time, Inc. (a), (j) Hospitality/Hotel Delayed Draw Term Loan
(3M USD LIBOR+8.50%), 10.25%, 12/22/2025		 12/22/2020 $-   -   -   0.0%
Book4Time, Inc. (a), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020  200,000   156,826   200,000   0.1%
Knowland Group, LLC Hospitality/Hotel Second Lien Term Loan
(3M USD LIBOR+8.00%), 10.00% Cash/1.00% PIK, 5/9/2024		 11/9/2018 $15,767,918   15,767,918   11,280,368   3.5%
Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan
(1M USD LIBOR+9.00%), 10.00% Cash, 4/27/2025		 4/27/2020 $3,000,000   2,975,728   3,000,000   0.9%
    Total Hospitality/Hotel        22,008,750   17,585,520   5.5%
Granite Comfort, LP HVAC Services and Sales First Lien Term Loan
(1M USD LIBOR+9.00%), 10.00% Cash, 11/16/2025		 11/16/2020 $20,000,000   19,815,082   19,950,000   6.2%
Granite Comfort, LP (j) HVAC Services and Sales Delayed Draw Term Loan
(1M USD LIBOR+9.00%), 10.00% Cash, 11/16/2025		 11/16/2020 $-   -   -   0.0%
    Total HVAC Services and Sales        19,815,082   19,950,000   6.2%
Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan
11.50% (9.75% Cash/1.75% PIK), 3/6/2022		 3/6/2013 $6,843,746   6,843,746   6,843,746   2.1%
Vector Controls Holding Co., LLC (d), (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015  343   -   2,188,389   0.7%
    Total Industrial Products        6,843,746   9,032,135   2.8%
CLEO Communications Holding, LLC (d) IT Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash/2.00% PIK, 3/31/2022		 3/31/2017 $14,146,020   14,138,542   14,249,286   4.4%
CLEO Communications Holding, LLC (d), (j) IT Services Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash/2.00% PIK, 3/31/2022		 3/31/2017 $20,556,466   20,507,075   20,706,528   6.5%
LogicMonitor, Inc. IT Services First Lien Term Loan
(3M USD LIBOR+5.00), 6.00% Cash, 5/17/2023		 3/20/2020 $23,000,000   22,883,641   23,101,200   7.2%
    Total IT Services        57,529,258   58,057,014   18.1%
inMotionNow, Inc. Marketing Services First Lien Term Loan
(3M USD LIBOR+7.50), 10.00% Cash, 5/15/2024		 5/15/2019 $12,200,000   12,124,363   12,389,100   3.9%
Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Apex Holdings Software Technologies, LLC Payroll Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024		 9/21/2016 $17,500,000   17,484,846   17,515,750   5.0%
Apex Holdings Software Technologies, LLC Payroll Services Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024		 10/1/2018 $-   -   -   0.0%
      Total Payroll Services        17,484,846   17,515,750   5.0%
Buildout, Inc. Real Estate Services First Lien Term Loan
(3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025		 7/9/2020 $14,000,000   13,889,357   13,995,800   4.1%
Buildout, Inc. Real Estate Services Delayed Draw Term Loan
(3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025		 2/12/2021 $3,000,000   2,973,924   2,999,100   0.8%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020  1,071   1,071,301   1,293,084   0.4%
      Total Real Estate Services        17,934,582   18,287,984   5.3%
LFR Chicken LLC Restaurant First Lien Term Loan
(1M USD LIBOR+7.00%), 8.00% Cash, 11/19/2026		 11/19/2021 $12,000,000   11,880,712   11,880,000   3.5%
LFR Chicken LLC (j) Restaurant Delayed Draw Term Loan
(1M USD LIBOR+7.00%), 8.00% Cash, 11/19/2026		 11/19/2021 $-   -   -   0.0%
LFR Chicken LLC (h) Restaurant Series B Preferred Units 11/19/2021  497,183   1,000,000   999,983   0.3%
TMAC Acquisition Co., LLC Restaurant Unsecured Term Loan
8.00% PIK, 9/01/2023		 3/1/2018 $2,758,622   2,758,622   2,737,602   0.8%
    Total Restaurant        15,639,334   15,617,585   4.6%
Pepper Palace, Inc. (d) Specialty Food Retailer First Lien Term Loan
(3M USD LIBOR+6.25%), 7.25% Cash, 6/30/2026		 6/30/2021 $33,915,000   33,593,475   33,575,850   9.7%
Pepper Palace, Inc. (j) Specialty Food Retailer Delayed Draw Term Loan
(3M USD LIBOR+6.25%), 7.25% Cash, 6/30/2026		 6/30/2021 $-   -   -   0.0%
Pepper Palace, Inc. (j) Specialty Food Retailer Revolving Credit Facility
(3M USD LIBOR+6.25%), 7.25% Cash, 6/30/2026		 6/30/2021 $-   -   -   0.0%
Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest 6/30/2021  1,000,000   1,000,000   1,000,000   0.2%
      Total Specialty Food Retailer        34,593,475   34,575,850   9.9%
ArbiterSports, LLC (d) Sports Management First Lien Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025		 2/21/2020 $26,000,000   25,834,438   25,589,200   7.4%
ArbiterSports, LLC (d) Sports Management Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025		 2/21/2020 $1,000,000   1,000,000   984,200   0.3%
    Total Sports Management        26,834,438   26,573,400   7.7%
Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014  100,000   100,000   1,892,978   0.6%
    Total Staffing Services        100,000   1,892,978   0.6%
Jobvite, Inc. (d) Talent Acquisition Software Second Lien Term Loan
(3M USD LIBOR+7.50%), 8.50% Cash, 1/6/2027		 7/6/2021 $20,000,000   19,830,902   19,826,000   5.8%
    Total Talen Acquisition Software        19,830,902   19,826,000   5.8%
National Waste Partners (d) Waste Services Second Lien Term Loan
10.00% Cash, 2/13/2022		 2/13/2017 $9,000,000   8,997,562   9,000,000   2.6%
    Total Waste Services        8,997,562   9,000,000   2.6%
Sub Total Non-control/Non-affiliate investments            536,539,603   546,750,922   159.6%
Affiliate investments - 11.8% (b)                      
Artemis Wax Corp. (f), (j) Consumer Services Delayed Draw Term Loan
(1M USD LIBOR+9.00%), 11.00% Cash, 5/20/2026		 5/20/2021 $24,000,000   23,769,915   23,935,200   7.0%
Artemis Wax Corp. (f), (h) Consumer Services Series B-1 Preferred Stock 5/20/2021  934,463   1,500,000   1,704,065   0.5%
Artemis Wax Corp. (f), (h) Consumer Services Series C Preferred Stock 5/20/2021  5,359   5,358,719   5,358,715   1.6%
    Total Consumer Services        30,628,634   30,997,980   9.1%

 


Company Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
inMotionNow, Inc. Marketing Services Delayed Draw Term Loan
(3M USD LIBOR+7.50) 10.00% Cash, 5/15/2024		 5/15/2019 $5,000,000   4,963,878   5,077,500   1.6%
    Total Marketing Services        17,088,241   17,466,600   5.5%
Omatic Software, LLC Non-profit Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.75% Cash, 5/29/2023		 5/29/2018 $5,500,000   5,474,886   5,500,000   1.7%
    Total Non-profit Services        5,474,886   5,500,000   1.7%
Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note
(3M USD LIBOR+8.50%), 10.00% Cash, 12/31/2023		 12/28/2012 $3,300,000   3,300,000   3,248,190   1.0%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests
Expires 12/28/2022		 12/28/2012  49,318   400,000   151,202   0.0%
    Total Office Supplies        3,700,000   3,399,392   1.0%
Apex Holdings Software Technologies, LLC Payroll Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024		 9/21/2016 $18,000,000   17,983,170   17,380,801   5.3%
Apex Holdings Software Technologies, LLC Payroll Services Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024		 10/1/2018 $1,000,000   994,942   965,600   0.3%
    Total Payroll Services        18,978,112   18,346,401   5.6%
Lexipol, LLC (h), (i) Public Safety/Local Government Software Series A Preferred Stock 3/30/2021  102   10,204,900   10,204,900   3.2%
    Total Public Safety/Local Government Software        10,204,900   10,204,900   3.2%
Buildout, Inc. Real Estate Services First Lien Term Loan
(3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025		 7/9/2020 $14,000,000   13,880,144   13,976,200   4.4%
Buildout, Inc. Real Estate Services Delayed Draw Term Loan
(3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025		 2/12/2021 $3,000,000   2,971,412   2,994,900   0.8%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020  1,071   1,071,301   1,215,084   0.4%
    Total Real Estate Services        17,922,857   18,186,184   5.6%
TMAC Acquisition Co., LLC (k) Restaurant Unsecured Term Loan
8.00% PIK, 9/01/2023		 3/1/2018 $2,261,017   2,261,017   2,169,383   0.7%
    Total Restaurant        2,261,017   2,169,383   0.7%
ArbiterSports, LLC (d) Sports Management First Lien Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025		 2/21/2020 $26,000,000   25,818,242   24,603,800   7.6%
ArbiterSports, LLC (d) Sports Management Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025		 2/21/2020 $1,000,000   1,000,000   946,300   0.3%
    Total Sports Management        26,818,242   25,550,100   7.9%
Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014  100,000   100,000   968,628   0.3%
    Total Staffing Services        100,000   968,628   0.3%
National Waste Partners (d) Waste Services Second Lien Term Loan
10.00% Cash, 2/13/2022		 2/13/2017 $9,000,000   8,988,368   9,000,000   2.8%
    Total Waste Services        8,988,368   9,000,000   2.8%
Sub Total Non-control/Non-affiliate investments            546,808,095   550,875,264   171.9%
                       
Affiliate investments - 12.4% (b)                      
Artemis Wax Corp. (f), (j) Consumer Services Delayed Draw Term Loan
(1M USD LIBOR+9.00%), 12.00% Cash, 5/20/2026		 5/20/2021 $15,295,662   15,142,705   15,142,705   4.7%
Artemis Wax Corp. (f) (h) Consumer Services Series B-1 Preferred Stock 5/20/2021  934,463   1,500,000   1,500,000   0.5%
Artemis Wax Corp. (f) (h) Consumer Services Series C Preferred Stock 5/20/2021  4,099   4,099,260   4,099,261   1.3%
    Total Consumer Services        20,741,965   20,741,966   6.5%
Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Axero Holdings, LLC(f) Employee Collaboration Software First Lien Term Loan
(3 USD LIBOR+10.00%), 11.00% Cash, 6/30/2026		 6/30/2021 $5,500,000   5,446,999   5,445,000   1.6%
Axero Holdings, LLC (f), (j) Employee Collaboration Software Delayed Draw Term Loan
(3 USD LIBOR+10.00%), 11.00% Cash, 6/30/2026		 6/30/2021 $-   -   -   0.0%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series A Preferred Units 6/30/2021  2,000,000   2,000,000   2,000,000   0.5%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series B Preferred Units 6/30/2021  2,000,000   2,000,000   2,000,000   0.6%
      Total Employee Collaboration Software        9,446,999   9,445,000   2.7%
Sub Total Affiliate investments            40,075,633   40,442,980   11.8%
Control investments - 21.6% (b)                      
Netreo Holdings, LLC (g) IT Services First Lien Term Loan
(3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK,
12/31/2025		 7/3/2018 $5,420,019   5,393,553   5,420,019   1.5%
Netreo Holdings, LLC (d), (g), (j) IT Services Delayed Draw Term Loan
(3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK,
12/31/2025		 5/26/2020 $10,409,659   10,318,388   10,409,659   3.0%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018  4,600,677   8,344,500   18,104,384   5.3%
      Total IT Services        24,056,441   33,934,062   9.8%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities
11.34%, 4/20/2033		 1/22/2008 $111,000,000   33,300,799   31,290,048   9.1%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities
(3M USD LIBOR+10.00%), 10.17%, 4/20/2033		 8/9/2021 $9,375,000   9,375,000   9,375,000   2.7%
    Total Structured Finance Securities        42,675,799   40,665,048   11.8%
Sub Total Control investments            66,732,240   74,599,110   21.6%
TOTAL INVESTMENTS - 193.0% (b)           $643,347,476  $661,793,012   193.0%

 


Company Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
GreyHeller LLC (f) Cyber Security First Lien Term Loan
(3M USD LIBOR+9.00%), 10.00% Cash, 12/31/2025		 11/17/2016 $7,000,000   6,988,553   7,000,000   2.2%
GreyHeller LLC (d), (f), (j) Cyber Security Delayed Draw Term Loan
(3M USD LIBOR+9.00%), 10.00% Cash, 12/31/2025		 10/19/2020 $6,250,000   6,193,810   6,250,001   1.9%
GreyHeller LLC (f), (h) Cyber Security Series A Preferred Units 11/17/2016  850,000   850,000   5,880,742   1.8%
    Total Cyber Security        14,032,363   19,130,743   5.9%
Sub Total Affiliate investments            34,774,328   39,872,709   12.4%
                       
Control investments - 27.2% (b)                      
Netreo Holdings, LLC (g) IT Services First Lien Term Loan
(3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK, 12/31/2025		 7/3/2018 $5,332,239   5,304,439   5,361,034   1.6%
Netreo Holdings, LLC (g), (j) IT Services Delayed Draw Term Loan
(3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK, 12/31/2025		 5/26/2020 $10,241,069   10,142,979   10,296,371   3.2%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018  4,600,677   8,344,500   17,946,180   5.6%
    Total IT Services        23,791,918   33,603,585   10.4%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities
15.87%, 4/20/2033		 1/22/2008 $111,000,000   33,411,912   35,546,307   11.1%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-3 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities
(3M USD LIBOR+10.00%), 10.13%, 4/20/2033		 2/26/2021 $17,875,000   17,875,000   17,875,000   5.7%
    Total Structured Finance Securities        51,286,912   53,421,307   16.8%
Sub Total Control investments            75,078,830   87,024,892   27.2%
TOTAL INVESTMENTS - 211.5% (b)           $656,661,253  $677,772,865   211.5%
  Number of
Shares		  Cost  Fair Value  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 42.1% (b)                
U.S. Bank Money Market (l)  144,068,471  $144,068,471  $144,068,471   42.1%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  144,068,471  $144,068,471  $144,068,471   42.1%

 

  Number of
Shares		  Cost  Fair Value  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 6.1% (b)                
U.S. Bank Money Market (l)  19,659,681  $19,659,681  $19,659,681   6.1%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  19,659,681  $19,659,681  $19,659,681   6.1%
(1)Securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and are restricted securities.

 

(a)Represents an ineligible investment as definedthat is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, as amended.amended (the 1940 Act”). As of May 31,November 30, 2021, non-qualifying assets represent 8.4% 6.6% of the Company’s portfolio at fair value. As a BDC, the Company can onlygenerally has to invest 30%at least 70% of its portfoliototal assets in non-qualifyingqualifying assets.

(b)Percentages are based on net assets of $320,344,756$342,601,745 as of May 31,November 30, 2021.

(c)Because there is no readily available market value for these investments, the fair values of these investments were determined using significant unobservable inputs and approved in good faith by our board of directors. These investments have been included as Level 3 in the Fair Value Hierarchy (see Note 3 to the consolidated financial statements).


(d)These securities are either fully or partially pledged as collateral under a senior secured revolving credit facility (see Note 7 to the consolidated financial statements).

(e)This investment does not have a stated interest rate that is payable thereon. As a result, the 15.87%11.34% interest rate in the table above represents the effective interest rate currently earned on the investment cost and is based on the current cash interest and other income generated by the investment.

(f)As defined in the Investment Company1940 Act, this portfolio company is an Affiliate“affiliate” as we own between 5.0% and 25.0% of the outstanding voting securities. GreyHeller, LLC is no longer an affiliate as of November 30, 2021. Transactions during the quarternine months ended May 31,November 30, 2021 in which the issuer was an Affiliateaffiliate are as follows:

 


Company Purchases  Sales  Total Interest from Investments  Management
Fee Income		  Net Realized
Gain (Loss) from
Investments		  Net Change in Unrealized Appreciation (Depreciation)  Purchases  Sales  Total Interest from Investments  Management Fee Income  Net Realized
Gain (Loss) from Investments		  Net Change in Unrealized Appreciation (Depreciation) 
Artemis Wax Corp. $20,732,455  $        -  $31,122  $        -  $        -  $1  $30,260,000  $-  $1,098,885  $       -  $-  $369,346 
GreyHeller LLC  3,960,000   -   309,390   -   -   1,995,811 
Axero Holdings, LLC  9,445,000   -   260,804   -   -   (1,999)
GreyHeller, LLC  8,910,000   (26,428,457)  973,278       7,328,457   - 
Total $24,692,455  $-  $340,512  $-  $-  $1,995,812  $48,615,000  $(26,428,457) $2,332,967  $-  $7,328,457  $367,347 

 

(g)As defined in the Investment Company1940 Act, we “Control”“control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the quarternine months ended May 31,November 30, 2021 in which the issuer was both an Affiliateaffiliate and a portfolio company that we Controlcontrol are as follows:

 

Company Purchases  Sales  Total Interest from Investments  Management
Fee Income		  Net Realized
Gain (Loss) from Investments		  Net Change in Unrealized Appreciation (Depreciation)  Purchases  Sales  Total Interest from Investments  Management Fee Income  Net Realized
Gain (Loss) from Investments		  Net Change in Unrealized Appreciation (Depreciation) 
Netreo Holdings, LLC $14,104,500  $         -  $279,628  $-  $         2  $4,224,061  $14,104,500  $-  $1,279,692  $-  $-  $4,290,015 
Saratoga Investment Corp. CLO 2013-1, Ltd.  -   -   1,133,296   818,232   -   4,531,306   -   -   3,516,264   2,448,593   -   386,160 
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-3 Note  -   -   465,738   -   -   (454,025)  -   (17,875,000)  814,431   -   -   (454,025)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-1-R-3 Note  8,500,000   (8,500,000)  4,786   -   (139,867)  - 
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note  9,375,000   -   299,392   -   -   - 
Total $14,104,500  $-  $1,878,661  $818,232  $2  $8,301,342  $31,979,500  $(26,375,000) $5,914,565  $2,448,593  $(139,867) $4,222,150 

 

(h)Non-income producing at May 31,November 30, 2021.

(i)Includes securities issued by an affiliate of the company.

(j)All or a portion of this investment has an unfunded commitment as of May 31,November 30, 2021. (see(See Note 8 to the consolidated financial statements).

(k)As of May 31,November 30, 2021, the investment wasthere were no investments on non-accrual status. The fair value of these investments was approximately $2.2 million, which represented 0.3% of the Company’s portfolio (see(See Note 2 to the consolidated financial statements).

(l)Included within cash and cash equivalents and cash and cash equivalents, reserve accounts in the Company’s consolidated statements of assets and liabilities as of May 31,November 30, 2021.

 

BSBY - Bloomberg Short-Term Bank Yield

LIBOR - London Interbank Offered Rate

 

3M USD BSBY - The 3 month USD BSBY rate as of November 30, 2021 was 0.16%.

1M USD LIBOR - The 1 month USD LIBOR rate as of May 31,November 30, 2021 was 0.09%.

3M USD LIBOR - The 3 month USD LIBOR rate as of May 31,November 30, 2021 was 0.13%0.17%.

PIK - Payment-in-Kind (see Note 2 to the consolidated financial statements).

 

See accompanying notes to consolidated financial statements.

 


Saratoga Investment Corp.

Consolidated Schedule of Investments

February 28, 2021

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		  Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Non-control/Non-affiliate investments - 154.5% (b)                                            
Targus Holdings, Inc. (d), (h) Consumer Products Common Stock 12/31/2009  210,456   1,589,630  $475,116   0.2% Consumer Products Common Stock 12/31/2009  210,456  $1,589,630  $475,116   0.2%
   Total Consumer Products        1,589,630   475,116   0.2%   Total Consumer Products        1,589,630   475,116   0.2%
My Alarm Center, LLC (k) Consumer Services Preferred Equity Class A Units
8.00% PIK		 7/14/2017  2,227   2,357,879   -   0.0% Consumer Services Preferred Equity Class A Units
8.00% PIK		 7/14/2017  2,227   2,357,879   -   0.0%
My Alarm Center, LLC (h) Consumer Services Preferred Equity Class B Units 7/14/2017  1,797   1,796,880   -   0.0% Consumer Services Preferred Equity Class B Units 7/14/2017  1,797   1,796,880   -   0.0%
My Alarm Center, LLC (h) Consumer Services Preferred Equity Class Z Units 9/12/2018  676   712,343   181,240   0.1% Consumer Services Preferred Equity Class Z Units 9/12/2018  676   712,343   181,240   0.1%
My Alarm Center, LLC (h) Consumer Services Common Stock 7/14/2017  96,224   -   -   0.0% Consumer Services Common Stock 7/14/2017  96,224   -   -   0.0%
   Total Consumer Services        4,867,102   181,240   0.1%   Total Consumer Services        4,867,102   181,240   0.1%
Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020  226,782   1,050,000   1,050,000   0.3% Corporate Education Software Series 1 Membership Interest 12/8/2020  226,782   1,050,000   1,050,000   0.3%
   Total Corporate Education Software        1,050,000   1,050,000   0.3%   Total Corporate Education Software        1,050,000   1,050,000   0.3%
Passageways, Inc. Corporate Governance First Lien Term Loan
(3M USD LIBOR+7.00%), 8.75% Cash, 12/31/2025		 7/5/2018 $5,000,000  $4,972,250   5,050,000   1.7% Corporate Governance First Lien Term Loan
(3M USD LIBOR+7.00%), 8.75% Cash, 12/31/2025		 7/5/2018 $5,000,000   4,972,250   5,050,000   1.7%
Passageways, Inc. (j) Corporate Governance Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 8.75% Cash, 12/31/2025		 1/3/2020 $5,000,000   4,980,871   5,050,000   1.7% Corporate Governance Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 8.75% Cash, 12/31/2025		 1/3/2020 $5,000,000   4,980,871   5,050,000   1.7%
Passageways, Inc. (h) Corporate Governance Series A Preferred Stock 7/5/2018  2,027,205   1,000,000   3,164,579   1.0% Corporate Governance Series A Preferred Stock 7/5/2018  2,027,205   1,000,000   3,164,579   1.0%
   Total Corporate Governance        10,953,121   13,264,579   4.4%   Total Corporate Governance        10,953,121   13,264,579   4.4%
New England Dental Partners Dental Practice Management First Lien Term Loan
(3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025		 11/25/2020 $6,555,000   6,491,331   6,489,450   2.1% Dental Practice Management First Lien Term Loan
(3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025		 11/25/2020 $6,555,000   6,491,331   6,489,450   2.1%
New England Dental Partners (j) Dental Practice Management Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025		 11/25/2020 $650,000   644,419   643,500   0.2% Dental Practice Management Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025		 11/25/2020 $650,000   644,419   643,500   0.2%
   Total Dental Practice Management        7,135,750   7,132,950   2.3%   Total Dental Practice Management        7,135,750   7,132,950   2.3%
PDDS Buyer, LLC Dental Practice Management Software First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024		 7/15/2019 $14,000,000   13,895,777   14,278,600   4.7% Dental Practice Management Software First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024		 7/15/2019 $14,000,000   13,895,777   14,278,600   4.7%
PDDS Buyer, LLC Dental Practice Management Software Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024		 7/15/2019 $7,000,000   6,938,964   7,139,300   2.3% Dental Practice Management Software Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024		 7/15/2019 $7,000,000   6,938,964   7,139,300   2.3%
PDDS Buyer, LLC (h) Dental Practice Management Software Series A-1 Preferred Shares 8/10/2020  1,755,831   2,000,000   2,240,946   0.7% Dental Practice Management Software Series A-1 Preferred Shares 8/10/2020  1,755,831   2,000,000   2,240,946   0.7%
   Total Dental Practice Management Software        22,834,741   23,658,846   7.7%   Total Dental Practice Management Software        22,834,741   23,658,846   7.7%
C2 Educational Systems (d) Education Services First Lien Term Loan
(3M USD LIBOR+8.50%), 10.00% Cash, 5/31/2023		 5/31/2017 $16,000,000   15,998,379   13,499,200   4.4% Education Services First Lien Term Loan
(3M USD LIBOR+8.50%), 10.00% Cash, 5/31/2023		 5/31/2017 $16,000,000   15,998,379   13,499,200   4.4%
Texas Teachers of Tomorrow, LLC (h), (i) Education Services Common Stock 12/2/2015  750   750,000   1,011,596   0.3% Education Services Common Stock 12/2/2015  750   750,000   1,011,596   0.3%
Texas Teachers of Tomorrow, LLC (d) Education Services First Lien Term Loan
(3M USD LIBOR+7.25%), 9.75% Cash, 6/28/2024		 6/28/2019 $25,947,024   25,748,711   25,874,372   8.5% Education Services First Lien Term Loan
(3M USD LIBOR+7.25%), 9.75% Cash, 6/28/2024		 6/28/2019 $25,947,024   25,748,711   25,874,372   8.5%
   Total Education Services        42,497,090   40,385,168   13.2%   Total Education Services        42,497,090   40,385,168   13.2%
Destiny Solutions Inc. (d) Education Software First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 10/24/2024		 5/16/2018 $43,500,000   43,204,446   43,630,500   14.3% Education Software First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 10/24/2024		 5/16/2018 $43,500,000   43,204,446   43,630,500   14.3%
Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018  2,342   2,468,464   3,069,267   1.0% Education Software Limited Partner Interests 5/16/2018  2,342   2,468,464   3,069,267   1.0%
Identity Automation Systems (d) Education Software First Lien Term Loan
(3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024		 8/25/2014 $17,247,500   17,247,500   17,357,884   5.7% Education Software First Lien Term Loan
(3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024		 8/25/2014 $17,247,500   17,247,500   17,357,884   5.7%
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014  232,616   232,616   725,726   0.2%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020  43,715   171,571   185,553   0.1%
GoReact Education Software First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/17/2020 $5,000,000   4,940,297   5,100,000   1.7%
GoReact (j) Education Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/17/2020 $-   -   -   0.0%
Kev Software Inc. (a) Education Software First Lien Term Loan
(1M USD LIBOR+8.63%), 9.63% Cash, 9/13/2023		 9/13/2018 $17,835,914   17,745,629   18,021,407   5.9%
   Total Education Software        86,010,523   88,090,337   28.9%
Davisware, LLC Field Service Management First Lien Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $3,000,000   2,977,590   3,030,000   1.0%
Davisware, LLC Field Service Management Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $977,790   974,399   987,568   0.3%
   Total Field Service Management        3,951,989   4,017,568   1.3%
GDS Software Holdings, LLC (h) Financial Services Common Stock Class A Units 8/23/2018  250,000   250,000   418,531   0.1%
   Total Financial Services        250,000   418,531   0.1%
Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock 1/15/2016  5,000   380,353   566,592   0.2%
   Total Healthcare Products Manufacturing        380,353   566,592   0.2%

 


Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		  Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014  232,616   232,616   725,726   0.2%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020  43,715   171,571   185,553   0.1%
GoReact Education Software First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/17/2020 $5,000,000   4,940,297   5,100,000   1.7%
GoReact (j) Education Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/17/2020 $-   -   -   0.0%
Kev Software Inc. (a) Education Software First Lien Term Loan
(1M USD LIBOR+8.63%), 9.63% Cash, 9/13/2023		 9/13/2018 $17,835,914   17,745,629   18,021,407   5.9%
   Total Education Software        86,010,523   88,090,337   28.9%
Davisware, LLC Field Service Management First Lien Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $3,000,000   2,977,590   3,030,000   1.0%
Davisware, LLC Field Service Management Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $977,790   974,399   987,568   0.3%
   Total Field Service Management        3,951,989   4,017,568   1.3%
GDS Software Holdings, LLC (h) Financial Services Common Stock Class A Units 8/23/2018  250,000   250,000   418,531   0.1%
   Total Financial Services        250,000   418,531   0.1%
Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock 1/15/2016  5,000   380,353   566,592   0.2%
   Total Healthcare Products Manufacturing        380,353   566,592   0.2%
Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018  400,000   400,000   1,415,301   0.5% Healthcare Services Common Stock Class A Units 6/19/2018  400,000   400,000   1,415,301   0.5%
Axiom Purchaser, Inc. (d) Healthcare Services First Lien Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023		 6/19/2018 $10,000,000   9,955,177   10,059,000   3.3% Healthcare Services First Lien Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023		 6/19/2018 $10,000,000   9,955,177   10,059,000   3.3%
Axiom Purchaser, Inc. (d) Healthcare Services Delayed Draw Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023		 6/19/2018 $6,000,000   5,961,748   6,035,400   2.0% Healthcare Services Delayed Draw Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023		 6/19/2018 $6,000,000   5,961,748   6,035,400   2.0%
ComForCare Health Care Healthcare Services First Lien Term Loan
(3M USD LIBOR+7.75%), 8.75% Cash, 1/31/2025		 1/31/2017 $25,000,000   24,871,639   24,900,000   8.2% Healthcare Services First Lien Term Loan
(3M USD LIBOR+7.75%), 8.75% Cash, 1/31/2025		 1/31/2017 $25,000,000   24,871,639   24,900,000   8.2%
   Total Healthcare Services        41,188,564   42,409,701   14.0%   Total Healthcare Services        41,188,564   42,409,701   14.0%
TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019  2,000,000   2,000,000   2,572,002   0.8% Healthcare Software Class D Membership Interests 4/15/2019  2,000,000   2,000,000   2,572,002   0.8%
HemaTerra Holding Company, LLC Healthcare Software First Lien Term Loan
(3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024		 4/15/2019 $6,000,000   5,956,593   6,060,000   2.0% Healthcare Software First Lien Term Loan
(3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024		 4/15/2019 $6,000,000   5,956,593   6,060,000   2.0%
HemaTerra Holding Company, LLC (d), (j) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024		 4/15/2019 $12,000,000   11,914,035   12,120,000   4.0% Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024		 4/15/2019 $12,000,000   11,914,035   12,120,000   4.0%
Procurement Partners, LLC Healthcare Software First Lien Term Loan
(3M USD LIBOR+6.50%), 7.50% Cash, 11/12/2025		 11/12/2020 $8,000,000   7,924,230   7,920,000   2.6% Healthcare Software First Lien Term Loan
(3M USD LIBOR+6.50%), 7.50% Cash, 11/12/2025		 11/12/2020 $8,000,000   7,924,230   7,920,000   2.6%
Procurement Partners, LLC (j) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 7.50% Cash, 11/12/2025		 11/12/2020 $-   -   -   0.0% Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 7.50% Cash, 11/12/2025		 11/12/2020 $-   -   -   0.0%
Procurement Partners Holdings LLC (h) Healthcare Software   11/12/2020  300,000   300,000   300,000   0.1% Healthcare Software Class A Units 11/12/2020  300,000   300,000   300,000   0.1%
   Total Healthcare Software        28,094,858   28,972,002   9.5%   Total Healthcare Software        28,094,858   28,972,002   9.5%
Roscoe Medical, Inc. (d), (h) Healthcare Supply Common Stock 3/26/2014  5,081   508,077   280,346 �� 0.1% Healthcare Supply Common Stock 3/26/2014  5,081   508,077   280,346   0.1%
Roscoe Medical, Inc. Healthcare Supply Second Lien Term Loan
11.25% Cash, 6/28/2021		 3/26/2014 $5,141,413   5,141,413   5,141,413   1.7% Healthcare Supply Second Lien Term Loan
11.25% Cash, 6/28/2021		 3/26/2014 $5,141,413   5,141,413   5,141,413   1.7%
   Total Healthcare Supply        5,649,490   5,421,759   1.8%   Total Healthcare Supply        5,649,490   5,421,759   1.8%
Book4Time, Inc. (a) Hospitality/Hotel First Lien Term Loan
(3M USD LIBOR+8.50%), 10.25%, 12/22/2025		 12/22/2020 $3,136,517   3,105,788   3,105,152   1.0% Hospitality/Hotel First Lien Term Loan
(3M USD LIBOR+8.50%), 10.25%, 12/22/2025		 12/22/2020 $3,136,517   3,105,788   3,105,152   1.0%
Book4Time, Inc. (a), (j) Hospitality/Hotel Delayed Draw Term Loan
(3M USD LIBOR+8.50%), 10.25%, 12/22/2025		 12/22/2020 $-   -   -   0.0% Hospitality/Hotel Delayed Draw Term Loan
(3M USD LIBOR+8.50%), 10.25%, 12/22/2025		 12/22/2020 $-   -   -   0.0%
Book4Time, Inc. (a), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020  200,000   156,826   156,826   0.1%
Knowland Group, LLC Hospitality/Hotel Second Lien Term Loan
(3M USD LIBOR+8.00%), 10.00% Cash, 5/9/2024		 11/9/2018 $15,767,918   15,767,918   10,788,409   3.5%
Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan
(1M USD LIBOR+9.00%), 10.00% Cash, 4/27/2025		 4/27/2020 $3,000,000   2,973,387   3,030,000   1.0%
   Total Hospitality/Hotel        22,003,919   17,080,387   5.6%
Granite Comfort, LP HVAC Services and Sales First Lien Term Loan
(1M USD LIBOR+9.00%), 10.00% Cash, 11/16/2025		 11/16/2020 $7,000,000   6,932,689   6,950,300   2.3%
Granite Comfort, LP HVAC Services and Sales Delayed Draw Term Loan
(1M USD LIBOR+9.00%), 10.00% Cash, 11/16/2025		 11/16/2020 $8,000,000   7,922,181   7,943,200   2.6%
   Total HVAC Services and Sales        14,854,870   14,893,500   4.9%
Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan
11.50% (9.75% Cash/1.75% PIK), 3/6/2022		 3/6/2013 $7,021,046   7,021,046   7,021,046   2.3%
Vector Controls Holding Co., LLC (d), (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015  343   -   2,025,598   0.7%
   Total Industrial Products        7,021,046   9,046,644   3.0%
CLEO Communications Holding, LLC (d) IT Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash/2.00% PIK, 3/31/2022		 3/31/2017 $14,073,964   14,064,807   14,176,704   4.7%
CLEO Communications Holding, LLC (d), (j) IT Services Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash/2.00% PIK, 3/31/2022		 3/31/2017 $20,451,756   20,388,504   20,601,054   6.8%
LogicMonitor, Inc. IT Services First Lien Term Loan
(3M USD LIBOR+5.00), 6.00% Cash, 5/17/2023		 3/20/2020 $23,000,000   22,865,749   23,089,700   7.6%
   Total IT Services        57,319,060   57,867,458   19.1%
inMotionNow, Inc. Marketing Services First Lien Term Loan
(3M USD LIBOR+7.50), 10.00% Cash, 5/15/2024		 5/15/2019 $12,200,000   12,116,232   12,322,000   4.1%
inMotionNow, Inc. Marketing Services Delayed Draw Term Loan (3M USD LIBOR+7.50) 10.00% Cash, 5/15/2024 5/15/2019 $5,000,000   4,960,820   5,050,000   1.7%
   Total Marketing Services        17,077,052   17,372,000   5.8%

 


Company Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Book4Time, Inc. (a), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020  200,000   156,826   156,826   0.1%
Knowland Group, LLC Hospitality/Hotel Second Lien Term Loan
(3M USD LIBOR+8.00%), 10.00% Cash, 5/9/2024		 11/9/2018 $15,767,918   15,767,918   10,788,409   3.5%
Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan
(1M USD LIBOR+9.00%), 10.00% Cash, 4/27/2025		 4/27/2020 $3,000,000   2,973,387   3,030,000   1.0%
    Total Hospitality/Hotel        22,003,919   17,080,387   5.6%
Granite Comfort, LP HVAC Services and Sales First Lien Term Loan
(1M USD LIBOR+9.00%), 10.00% Cash, 11/16/2025		 11/16/2020 $7,000,000   6,932,689   6,950,300   2.3%
Granite Comfort, LP HVAC Services and Sales Delayed Draw Term Loan
(1M USD LIBOR+9.00%), 10.00% Cash, 11/16/2025		 11/16/2020 $8,000,000   7,922,181   7,943,200   2.6%
    Total HVAC Services and Sales        14,854,870   14,893,500   4.9%
Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan
11.50% (9.75% Cash/1.75% PIK), 3/6/2022		 3/6/2013 $7,021,046   7,021,046   7,021,046   2.3%
Vector Controls Holding Co., LLC (d), (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015  343   -   2,025,598   0.7%
    Total Industrial Products        7,021,046   9,046,644   3.0%
CLEO Communications Holding, LLC (d) IT Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash/2.00% PIK, 3/31/2022		 3/31/2017 $14,073,964   14,064,807   14,176,704   4.7%
CLEO Communications Holding, LLC (d), (j) IT Services Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash/2.00% PIK, 3/31/2022		 3/31/2017 $20,451,756   20,388,504   20,601,054   6.8%
LogicMonitor, Inc. IT Services First Lien Term Loan
(3M USD LIBOR+5.00), 6.00% Cash, 5/17/2023		 3/20/2020 $23,000,000   22,865,749   23,089,700   7.6%
    Total IT Services        57,319,060   57,867,458   19.1%
inMotionNow, Inc. Marketing Services First Lien Term Loan
(3M USD LIBOR+7.50), 10.00% Cash, 5/15/2024		 5/15/2019 $12,200,000   12,116,232   12,322,000   4.1%
inMotionNow, Inc. Marketing Services Delayed Draw Term Loan
(3M USD LIBOR+7.50) 10.00% Cash, 5/15/2024		 5/15/2019 $5,000,000   4,960,820   5,050,000   1.7%
    Total Marketing Services        17,077,052   17,372,000   5.8%
Omatic Software, LLC Non-profit Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.75% Cash, 5/29/2023		 5/29/2018 $5,500,000   5,470,787   5,554,450   1.8%
    Total Non-profit Services        5,470,787   5,554,450   1.8%
Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note
(3M USD LIBOR+8.50%), 10.00% Cash, 12/31/2023		 12/28/2012 $3,300,000   3,300,000   3,287,460   1.1%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests Expires 12/28/2022 12/28/2012  49,318   400,000   322,853   0.1%
    Total Office Supplies        3,700,000   3,610,313   1.2%
Apex Holdings Software Technologies, LLC Payroll Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024		 9/21/2016 $18,000,000   17,981,413   17,368,200   5.7%
Apex Holdings Software Technologies, LLC Payroll Services Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024		 10/1/2018 $1,000,000   994,557   964,900   0.3%
    Total Payroll Services        18,975,970   18,333,100   6.0%
Village Realty Holdings LLC Property Management First Lien Term Loan
(3M USD LIBOR+6.50%), 8.75% Cash, 10/8/2024		 10/8/2019 $7,250,000   7,189,591   7,395,000   2.4%
Village Realty Holdings LLC (j) Property Management Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 8.75% Cash, 10/8/2024		 10/8/2019 $4,876,322   4,838,617   4,973,850   1.6%
Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Omatic Software, LLC Non-profit Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.75% Cash, 5/29/2023		 5/29/2018 $5,500,000   5,470,787   5,554,450   1.8%
    Total Non-profit Services        5,470,787   5,554,450   1.8%
Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note
(3M USD LIBOR+8.50%), 10.00% Cash, 12/31/2023		 12/28/2012 $3,300,000   3,300,000   3,287,460   1.1%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests Expires 12/28/2022 12/28/2012  49,318   400,000   322,853   0.1%
    Total Office Supplies        3,700,000   3,610,313   1.2%
Apex Holdings Software Technologies, LLC Payroll Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024		 9/21/2016 $18,000,000   17,981,413   17,368,200   5.7%
Apex Holdings Software Technologies, LLC Payroll Services Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024		 10/1/2018 $1,000,000   994,557   964,900   0.3%
    Total Payroll Services        18,975,970   18,333,100   6.0%
Village Realty Holdings LLC Property Management First Lien Term Loan
(3M USD LIBOR+6.50%), 8.75% Cash, 10/8/2024		 10/8/2019 $7,250,000   7,189,591   7,395,000   2.4%
Village Realty Holdings LLC (j) Property Management Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 8.75% Cash, 10/8/2024		 10/8/2019 $4,876,322   4,838,617   4,973,850   1.6%
V Rental Holdings LLC (h) Property Management Class A-1 Membership Units 10/8/2019  122,578   365,914   2,208,681   0.7%
    Total Property Management        12,394,122   14,577,531   4.7%
Buildout, Inc. Real Estate Services First Lien Term Loan
(3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025		 7/9/2020 $14,000,000   13,873,317   13,952,400   4.6%
Buildout, Inc. Real Estate Services Delayed Draw Term Loan
(3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025		 2/12/2021 $3,000,000   2,970,361   2,989,800   1.0%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020  1,071   1,071,301   1,090,002   0.4%
    Total Real Estate Services        17,914,979   18,032,202   6.0%
TMAC Acquisition Co., LLC (k) Restaurant Unsecured Term Loan
8.00% PIK, 9/01/2023		 3/1/2018 $2,261,017   2,261,017   2,140,911   0.7%
    Total Restaurant        2,261,017   2,140,911   0.7%
ArbiterSports, LLC (d) Sports Management First Lien Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025		 2/21/2020 $26,000,000   25,800,743   24,525,800   8.1%
ArbiterSports, LLC (d) Sports Management Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025		 2/21/2020 $1,000,000   1,000,000   943,300   0.3%
    Total Sports Management        26,800,743   25,469,100   8.4%
Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014  100,000   100,000   924,509   0.3%
    Total Staffing Services        100,000   924,509   0.3%
National Waste Partners (d) Waste Services Second Lien Term Loan
10.00% Cash, 2/13/2022		 2/13/2017 $9,000,000   8,981,436   9,000,000   3.0%
    Total Waste Services        8,981,436   9,000,000   3.0%
Sub Total Non-control/Non-affiliate investments            471,328,212   469,946,494   154.5%

 


Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		  Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
V Rental Holdings LLC (h) Property Management Class A-1 Membership Units 10/8/2019  122,578   365,914   2,208,681   0.7%
   Total Property Management        12,394,122   14,577,531   4.7%
Buildout, Inc. Real Estate Services First Lien Term Loan
(3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025		 7/9/2020 $14,000,000   13,873,317   13,952,400   4.6%
Buildout, Inc. Real Estate Services Delayed Draw Term Loan
(3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025		 2/12/2021 $3,000,000   2,970,361   2,989,800   1.0%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020  1,071   1,071,301   1,090,002   0.4%
   Total Real Estate Services        17,914,979   18,032,202   6.0%
TMAC Acquisition Co., LLC (k) Restaurant Unsecured Term Loan
8.00% PIK, 9/01/2023		 3/1/2018 $2,261,017   2,261,017   2,140,911   0.7%
   Total Restaurant        2,261,017   2,140,911   0.7%
ArbiterSports, LLC (d) Sports Management First Lien Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025		 2/21/2020 $26,000,000   25,800,743   24,525,800   8.1%
ArbiterSports, LLC (d) Sports Management Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025		 2/21/2020 $1,000,000   1,000,000   943,300   0.3%
   Total Sports Management        26,800,743   25,469,100   8.4%
Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014  100,000   100,000   924,509   0.3%
   Total Staffing Services        100,000   924,509   0.3%
National Waste Partners (d) Waste Services Second Lien Term Loan
10.00% Cash, 2/13/2022		 2/13/2017 $9,000,000   8,981,436   9,000,000   3.0%
   Total Waste Services        8,981,436   9,000,000   3.0%
Sub Total Non-control/Non-affiliate investments            471,328,212   469,946,494   154.5%
                      
Affiliate investments - 6.4% (b)                                            
GreyHeller LLC (f) Cyber Security First Lien Term Loan
(3M USD LIBOR+11.00%), 12.00% Cash, 12/31/2025		 11/17/2016 $7,000,000   6,988,549   7,000,000   2.3% Cyber Security First Lien Term Loan
(3M USD LIBOR+11.00%), 12.00% Cash, 12/31/2025		 11/17/2016 $7,000,000   6,988,549   7,000,000   2.3%
GreyHeller LLC (d), (f), (j) Cyber Security Delayed Draw Term Loan
(3M USD LIBOR+11.00%), 12.00% Cash, 12/31/2025		 10/19/2020 $2,250,000   2,233,173   2,250,000   0.7% Cyber Security Delayed Draw Term Loan
(3M USD LIBOR+11.00%), 12.00% Cash, 12/31/2025		 10/19/2020 $2,250,000   2,233,173   2,250,000   0.7%
GreyHeller LLC (f), (h) Cyber Security Series A Preferred Units 11/17/2016  850,000   850,000   3,924,291   1.3% Cyber Security Series A Preferred Units 11/17/2016  850,000   850,000   3,924,291   1.3%
   Total Cyber Security        10,071,722   13,174,291   4.3%   Total Cyber Security        10,071,722   13,174,291   4.3%
Top Gun Pressure Washing, LLC (f) Facilities Maintenance First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024		 8/12/2019 $5,000,000   4,961,639   4,491,500   1.5% Facilities Maintenance First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024		 8/12/2019 $5,000,000   4,961,639   4,491,500   1.5%
Top Gun Pressure Washing, LLC (f), (j) Facilities Maintenance Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024		 8/12/2019 $1,825,000   1,810,198   1,639,397   0.6% Facilities Maintenance Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024		 8/12/2019 $1,825,000   1,810,198   1,639,397   0.6%
TG Pressure Washing Holdings, LLC (f), (h) Facilities Maintenance Preferred Equity 8/12/2019  488,148   488,148   62,552   0.0% Facilities Maintenance Preferred Equity 8/12/2019  488,148   488,148   62,552   0.0%
   Total Facilities Maintenance        7,259,985   6,193,449   2.1%   Total Facilities Maintenance        7,259,985   6,193,449   2.1%
Sub Total Affiliate investments            17,331,707   19,367,740   6.4%            17,331,707   19,367,740   6.4%
                      
Control investments - 21.4% (b)                                            
Netreo Holdings, LLC (g) IT Services First Lien Term Loan
(3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK,
12/31/2025		 7/3/2018 $5,296,555   5,268,156   5,349,521   1.8% IT Services First Lien Term Loan
(3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK,
12/31/2025		 7/3/2018 $5,296,555   5,268,156   5,349,521   1.8%
Netreo Holdings, LLC (g), (j) IT Services Delayed Draw Term Loan
(3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK,
12/31/2020		 5/26/2020 $1,223,203   1,213,962   1,235,435   0.4% IT Services Delayed Draw Term Loan
(3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK,
12/31/2020		 5/26/2020 $1,223,203   1,213,962   1,235,435   0.4%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018  3,150,000   3,150,000   8,634,768   2.8% IT Services Common Stock Class A Unit 7/3/2018  3,150,000   3,150,000   8,634,768   2.8%
   Total IT Services        9,632,118   15,219,724   5.0%   Total IT Services        9,632,118   15,219,724   5.0%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities
11.72%, 1/20/2030		 1/22/2008 $111,000,000   33,846,643   31,449,732   10.3%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-3 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities
(3M USD LIBOR+10.00%), 10.19%, 4/20/2033		 2/26/2021 $17,875,000   17,875,000   18,329,025   6.1%
   Total Structured Finance Securities        51,721,643   49,778,757   16.4%
Sub Total Control investments            61,353,761   64,998,481   21.4%
TOTAL INVESTMENTS - 182.2% (b)           $550,013,680  $554,312,715   182.2%

 


Company Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities
11.72%, 1/20/2030		 1/22/2008 $111,000,000   33,846,643   31,449,732   10.3%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-3 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities
(3M USD LIBOR+10.00%), 10.19%, 4/20/2033		 2/26/2021 $17,875,000   17,875,000   18,329,025   6.1%
    Total Structured Finance Securities        51,721,643   49,778,757   16.4%
Sub Total Control investments            61,353,761   64,998,481   21.4%
TOTAL INVESTMENTS - 182.2% (b)           $550,013,680  $554,312,715   182.2%
                       
  Number of
Shares		  Cost  Fair Value  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 6.2% (b)            
U.S. Bank Money Market (l)  18,828,047  $18,828,047  $18,828,047   6.2%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  18,828,047  $18,828,047  $18,828,047   6.2%
  Number of Shares  Cost  Fair Value  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 6.2% (b)            
U.S. Bank Money Market (l)  18,828,047  $18,828,047  $18,828,047   6.2%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  18,828,047  $18,828,047  $18,828,047   6.2%

(1)Securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and are restricted securities.

 

(a)Represents an ineligible investment as definedthat is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, as amended.amended (the “1940 Act”). As of February 28,November 30, 2021 non-qualifying assets represent 9.5%6.6% of the Company’s portfolio at fair value. As a BDC, the Company can onlygenerally has to invest 30%at least 70% of its portfoliototal assets in non-qualifyingqualifying assets.

(b)Percentages are based on net assets of $304,185,770 as of February 28, 2021.

(c)Because there is no readily available market value for these investments, the fair values of these investments were determined using significant unobservable inputs and approved in good faith by our board of directors. These investments have been included as Level 3 in the Fair Value Hierarchy (see Note 3 to the consolidated financial statements).


(d)These securities are either fully or partially pledged as collateral under a senior secured revolving credit facility (see Note 7 to the consolidated financial statements).

(e)This investment does not have a stated interest rate that is payable thereon. As a result, the 11.72% interest rate in the table above represents the effective interest rate currently earned on the investment cost and is based on the current cash interest and other income generated by the investment.

(f)As defined in the Investment Company1940 Act, this portfolio company is an Affiliate“affiliate” as we own between 5.0% and 25.0% of the outstanding voting securities. Transactions during the yearnine months ended February 28,November 30, 2021 in which the issuer was an Affiliateaffiliate are as follows:

 

Company Purchases  Sales  Total Interest from Investments  Management
Fee Income		  Net Realized
Gain (Loss) from Investments		  Net Change in Unrealized Appreciation (Depreciation)  Purchases  Sales  Total Interest from Investments  Management Fee Income  Net Realized
Gain (Loss) from Investments		  Net Change in Unrealized Appreciation (Depreciation) 
Elyria Foundry Company, L.L.C. $-  $(2,309,806) $172,626  $          -  $(8,726,013) $7,745,228  $-  $(2,309,806) $172,626  $      -  $(8,726,013) $7,745,228 
GreyHeller LLC  2,227,500   -   987,969   -   -   942,175   2,227,500   -   987,969   -   -   942,175 
Top Gun Pressure Washing, LLC  1,806,750   -   668,294   -   -   (712,711)  1,806,750   -   668,294   -   -   (712,711)
TG Pressure Washing Holdings, LLC  138,148   -   -   -   -   (425,596)  138,148   -   -   -   -   (425,596)
Total $4,172,398  $(2,309,806) $1,828,889  $-  $(8,726,013) $7,549,096  $4,172,398  $(2,309,806) $1,828,889  $-  $(8,726,013) $7,549,096 

 


(g)As defined in the Investment Company1940 Act, we “Control”“control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the yearnine months ended February 28,November 30, 2021 in which the issuer was both an Affiliateaffiliate and a portfolio company that we Controlcontrol are as follows:

  

Company Purchases  Sales  Total Interest from Investments  Management
Fee Income		  Net Realized
Gain (Loss) from
Investments		  Net Change in Unrealized Appreciation (Depreciation)  Purchases  Sales  Total Interest from Investments  Management Fee Income  Net Realized
Gain (Loss) from Investments		  Net Change in Unrealized Appreciation (Depreciation) 
Netreo Holdings, LLC $1,188,000  $-  $738,012  $-  $          -  $1,832,136  $1,188,000  $-  $738,012  $-  $            -  $1,832,136 
Saratoga Investment Corp. CLO 2013-1, Ltd.  14,000,000   -   3,535,591   2,507,626   -   (1,433,723)  14,000,000   -   3,535,591   2,507,626   -   (1,433,723)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-2 Notes  -   (2,500,000)  237,163   -   -   22,000   -   (2,500,000)  237,163   -   -   22,000 
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-3 Note  17,875,000   -   15,187   -   -   454,025   17,875,000   -   15,187   -   -   454,025 
Saratoga Investment Corp. CLO 2013-1, Ltd. Class G-R-2 Notes  -   (7,500,000)  805,759   -   -   65,250   -   (7,500,000)  805,759   -   -   65,250 
Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd.  22,500,000   (25,000,000)  679,926   -   -   295,459   22,500,000   (25,000,000)  679,926   -   -   295,459 
Total $55,563,000  $(35,000,000) $6,011,638  $2,507,626  $-  $1,235,147  $55,563,000  $(35,000,000) $6,011,638  $2,507,626  $-  $1,235,147 

 

(h)Non-income producing at February 28, 2021.

(i)Includes securities issued by an affiliate of the company.Company.

(j)All or a portion of this investment has an unfunded commitment as of February 28, 2021. (see Note 8 to the consolidated financial statements).

(k)As of February 28, 2021, the investment was on non-accrual status. The fair value of these investments was approximately $2.1 million, which represented 0.4% of the Company’s portfolio (see Note 2 to the consolidated financial statements).

(l)Included within cash and cash equivalents and cash and cash equivalents, reserve accounts in the Company’s consolidated statements of assets and liabilities as of February 28, 2021.

 

LIBOR - London Interbank Offered Rate

 

1M USD LIBOR - The 1 month USD LIBOR rate as of February 28, 2021 was 0.12%.

3M USD LIBOR - The 3 month USD LIBOR rate as of February 28, 2021 was 0.19%.

PIK - Payment-in-Kind (see Note 2 to the consolidated financial statements).

 

See accompanying notes to consolidated financial statements.

 


SARATOGA INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

May 31,November 30, 2021

(unaudited)

 

Note 1. Organization

 

Saratoga Investment Corp. (the “Company”, “we”, “our” and “us”) is a non-diversified closed end management investment company incorporated in Maryland that has elected to be treated and is regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company commenced operations on March 23, 2007 as GSC Investment Corp. and completed its initial public offering (“IPO”) on March 28, 2007. The Company has elected, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company expects to continue to qualify and to elect to be treated, for tax purposes, as a RIC. The Company’s investment objective is to generate current income and, to a lesser extent, capital appreciation from its investments.

 

GSC Investment, LLC (the “LLC”) was organized in May 2006 as a Maryland limited liability company. As of February 28, 2007, the LLC had not yet commenced its operations and investment activities.

 

On March 21, 2007, the Company was incorporated and concurrently therewith the LLC was merged with and into the Company, with the Company as the surviving entity, in accordance with the procedure for such merger in the LLC’s limited liability company agreement and Maryland law. In connection with such merger, each outstanding limited liability company interest of the LLC was converted into a share of common stock of the Company.

 

On July 30, 2010, the Company changed its name from “GSC Investment Corp.” to “Saratoga Investment Corp.” in connection with the consummation of a recapitalization transaction.

 

The Company is externally managed and advised by the investment adviser, Saratoga Investment Advisors, LLC (the “Manager” or “Saratoga Investment Advisors”), pursuant to an investment advisory and management agreement (the “Management Agreement”). Prior to July 30, 2010, the Company was managed and advised by GSCP (NJ), L.P.

 

The Company has established wholly-ownedwholly owned subsidiaries, SIA-Avionte, Inc., SIA-AX, Inc., SIA-GH, Inc., SIA-MAC, Inc., SIA-PEP, Inc., SIA-PP, Inc., SIA-TG, Inc., SIA-TT, Inc., SIA-Vector, Inc. and SIA-VR, Inc., which are structured as Delaware entities, or tax blockers (“Taxable Blockers”), to hold equity or equity-like investments in portfolio companies organized as limited liability companies, or LLCs (or other forms of pass through entities). Tax blockers are consolidated for accounting purposes but are not consolidated for income tax purposes and may incur income tax expense as a result of their ownership of portfolio companies.

 

On March 28, 2012, our wholly-ownedwholly owned subsidiary, Saratoga Investment Corp. SBIC, LP (“SBIC LP”), received a Small Business Investment Company (“SBIC”) license from the Small Business Administration (“SBA”). On August 14, 2019, our wholly-ownedwholly owned subsidiary, Saratoga Investment Corp. SBIC II LP (“SBIC II LP”), also received an SBIC license from the SBA. The new license will provide up to $175.0 million in additional long-term capital in the form of SBA debentures.

 

The Company has formed a wholly owned special purpose entity, Saratoga Investment Funding II LLC, a Delaware limited liability company (“SIF II”), for the purpose of entering into a $50.0 million senior secured revolving credit facility with Encina Lender Finance, LLC (the “Lender”), supported by loans held by SIF II and pledged to the Lender under the credit facility (the “Encina Credit Facility”). The Encina Credit Facility closed on October 4, 2021. During the first two years following the closing date, SIF II may request an increase in the commitment amount under the Encina Credit Facility to up to $75.0 million. The terms of the Encina Credit Facility require a minimum drawn amount of $12.5 million at all times during the first six months following the closing date, which increases to the greater of $25.0 million or 50% of the commitment amount in effect at any time thereafter. The term of the Encina Credit Facility is three years. Advances under the Encina Credit Facility bear interest at a floating rate per annum equal to LIBOR plus 4.0%, with LIBOR having a floor of 0.75%, with customary provisions related to the selection by the Lender and the Company of a replacement benchmark rate. Concurrently with the closing of the Encina Credit Facility, all remaining amounts outstanding on the Company’s existing revolving credit facility with Madison Capital Funding, LLC were repaid and the revolving credit facility terminated.

On October 26, 2021, the Company and TJHA JV I LLC entered into a Limited Liability Company Agreement (the “LLC Agreement”) to co-manage Saratoga Senior Loan Fund I JV LLC (“Saratoga JV”). Saratoga JV is a joint venture that is expected to invest in the debt or equity interests of collateralized loan obligations, loans, notes and other debt instruments.


Note 2. Summary of Significant Accounting Policies

 

Basis of Presentation

 

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), are stated in U.S. Dollars and include the accounts of the Company and its special purpose financing subsidiaries, Saratoga Investment Funding, LLC (previously known as GSC Investment Funding LLC), SIF II, SBIC LP, SBIC II LP, SIA-Avionte, Inc., SIA-AX, Inc., SIA-GH, Inc., SIA-MAC, Inc., SIA-PEP., SIA-PP, Inc., SIA-TG, Inc., SIA-TT, Inc., SIA-Vector, Inc. and SIA-VR, Inc. All intercompany accounts and transactions have been eliminated in consolidation. All references made to the “Company,” “we,” and “us” herein include Saratoga Investment Corp. and its consolidated subsidiaries, except as stated otherwise.

 


The Company, SBIC LP, and SBIC II LP and SIF II are all considered to be investment companies for financial reporting purposes and have applied the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services — Investment Companies” (“ASC 946”). There have been no changes to the Company, SBIC LP or SBIC II LP’s status as investment companies during the three months ended May 31,November 30, 2021.

 

Use of Estimates in the Preparation of Financial Statements

 

The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and income, gains (losses) and expenses during the period reported. Actual results could differ materially from those estimates.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include short-term, liquid investments in a money market fund. Cash and cash equivalents are carried at cost which approximates fair value. Per sectionPursuant to Section 12(d)(1)(A) of the 1940 Act, the Company may not invest in another registered investment company (including Section 3(c)(1) and Section 3(c)(7) funds for this purpose), such as a money market fund (except as permitted under Rule 12d1-1 under the 1940 Act which is designed to permit "cash sweep" arrangements rather than investments directly in short-term instruments), if such investment would cause the Company to exceed any of the following limitations:

 

●we were to own more than 3.0% of the investment company’s total outstanding voting stock of the money market fund;stock;

 

●we were to hold securities in the money market fundinvestment company having an aggregate value in excess of 5.0% of the value of our total assets, except as allowed pursuant to Rule 12d1-1 of Section 12(d)(1) of the 1940 Act which is designed to permit “cash sweep” arrangements rather than investments directly in short-term instruments;assets; or

 

●we were to hold securities in money market funds and other registered investment companies and BDCs having an aggregate value in excess of 10.0% of the value of our total assets.

 

As of May 31,November 30, 2021, the Company did not exceed any of these limitations.

 

Cash and Cash Equivalents, Reserve Accounts

 

Cash and cash equivalents, reserve accounts include amounts held in designated bank accounts in the form of cash and short-term liquid investments in money market funds, representing payments received on secured investments or other reserved amounts associated with the Company’s $45.0 million senior secured revolving credit facility with Madison Capital Funding LLC.facilities. The Company is required to use these amounts to pay interest expense, reduce borrowings, or pay other amounts in accordance with the terms of the senior secured revolving credit facility.facilities.

 

In addition, cash and cash equivalents, reserve accounts also include amounts held in designated bank accounts, in the form of cash and short-term liquid investments in money market funds, within our wholly-ownedwholly owned subsidiaries, SBIC LP and SBIC II LP.

 

The statements of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents when reconciling the beginning-of-period and end-of-period total amounts.

 

The following table provides a reconciliation of cash and cash equivalents and cash and cash equivalents, reserve accounts reported within the consolidated statements of assets and liabilities that sum to the total of the same such amounts shown in the consolidated statements of cash flows:
 
  May 31, 2021  May 31, 2020 
Cash and cash equivalents $317,932  $12,842,608 
Cash and cash equivalents, reserve accounts  19,659,681   12,952,393 
Total cash and cash equivalents and cash and cash equivalents, reserve accounts $19,977,613  $25,795,001 

The following table provides a reconciliation of cash and cash equivalents and cash and cash equivalents, reserve accounts reported within the consolidated statements of assets and liabilities that sum to the total of the same such amounts shown in the consolidated statements of cash flows:

 


  November 30,
2021		  November 30,
2020		 
Cash and cash equivalents $120,881,990  $21,060,224 
Cash and cash equivalents, reserve accounts  23,186,481   12,836,663 
Total cash and cash equivalents and cash and cash equivalents, reserve accounts $144,068,471  $33,896,887 

Investment Classification

 

The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, “Control Investments” are defined as investments in companies in which we own more than 25.0% of the voting securities or maintain greater than 50.0% of the board representation. Under the 1940 Act, “Affiliated Investments” are defined as those non-control investments in companies in which we own between 5.0% and 25.0% of the voting securities. Under the 1940 Act, “Non-affiliated Investments” are defined as investments that are neither Control Investments nor Affiliated Investments.

 

Investment Valuation

 

The Company accounts for its investments at fair value in accordance with the FASB ASC Topic 820, Fair Value Measurement (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires the Company to assume that its investments are to be sold or its liabilities are to be transferred at the measurement date in the principal market to independent market participants, or in the absence of a principal market, in the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact.

 

Investments for which market quotations are readily available are fair valued at such market quotations obtained from independent third-party pricing services and market makers subject to any decision by our board of directors to approve a fair value determination to reflect significant events affecting the value of these investments. We value investments for which market quotations are not readily available at fair value as approved, in good faith, by our board of directors based on input from our Manager, the audit committee of our board of directors and a third-party independent valuation firm.

 

The Company undertakes a multi-step valuation process each quarter when valuing investments for which market quotations are not readily available, as described below:

 

·●Each investment is initially valued by the responsible investment professionals of the Manager and preliminary valuation conclusions are documented, reviewed and discussed with our senior management; and

 

·●An independent valuation firm engaged by our board of directors independently reviews a selection of these preliminary valuations each quarter so that the valuation of each investment for which market quotes are not readily available is reviewed by the independent valuation firm at least once each fiscal year.

 

In addition, all our investments are subject to the following valuation process:

 

·●The audit committee of our board of directors reviews and approves each preliminary valuation and our Manager and independent valuation firm (if applicable) will supplement the preliminary valuation to reflect any comments provided by the audit committee; and

 

●Our board of directors discusses the valuations and approves the fair value of each investment, in good faith, based on the input of our Manager, independent valuation firm (to the extent applicable) and the audit committee of our board of directors.

 

We use multiple techniques for determining fair value based on the nature of the investment and experience with those types of investments and specific portfolio companies. The selections of the valuation techniques and the inputs and assumptions used within those techniques often require subjective judgements and estimates. These techniques include market comparables, discounted cash flows and enterprise value waterfalls. Fair value is best expressed as a range of values from which the Company determines a single best estimate. The types of inputs and assumptions that may be considered in determining the range of values of our investments include the nature and realizable value of any collateral, the portfolio company’s ability to make payments, market yield trend analysis and volatility in future interest rates, call and put features, the markets in which the portfolio company does business, comparison to publicly traded companies, discounted cash flows and other relevant factors.

 


The Company’s investment in Saratoga Investment Corp. CLO 2013-1, Ltd. (“Saratoga CLO”) is carried at fair value, which is based on a discounted cash flow valuation technique that utilizes prepayment, re-investment and loss inputs based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and comparable yields for equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by our Manager and recommended to our board of directors. Specifically, we use Intex cash flows, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The cash flows use a set of inputs including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The inputs are based on available market data and projections provided by third parties as well as management estimates. The Company uses the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine the valuation for our investment in Saratoga CLO.

 

Because such valuations, and particularly valuations of private investments and private companies, are inherently uncertain, they may fluctuate over short periods of time and may be based on estimates. The determination of fair value may differ materially from the values that would have been used if a ready market for these investments existed. The Company’s net asset value could be materially affected if the determinations regarding the fair value of our investments were materially higher or lower than the values that we ultimately realize upon the disposal of such investments.

 

Derivative Financial Instruments

 

The Company accounts for derivative financial instruments in accordance with FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”). ASC 815 requires recognizing all derivative instruments as either assets or liabilities on the consolidated statements of assets and liabilities at fair value. The Company values derivative contracts at the closing fair value provided by the counterparty. Changes in the values of derivative contracts are included in the consolidated statements of operations.

 

Investment Transactions and Income Recognition

 

Purchases and sales of investments and the related realized gains or losses are recorded on a trade-date basis. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis to the extent that such amounts are expected to be collected. The Company stops accruing interest on its investments when it is determined that interest is no longer collectible. Discounts and premiums on investments purchased are accreted/amortized using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of discounts over the life of the investment and amortization of premiums on investments up to the earliest call date.

 

Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reserved when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as a reduction in principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection. At May 31,November 30, 2021, certainthere were no investments in two portfolio companies, including preferred equity interests, were on non-accrual status with a fair value of approximately $2.2 million, or 0.3% of the fair value of our portfolio.status. At February 28, 2021, certain investments in two portfolio companies, including preferred equity interests, were on non-accrual status with a fair value of approximately $2.1 million, or 0.4% of the fair value of our portfolio.

 

Interest income on our investment in Saratoga CLO is recorded using the effective interest method in accordance with the provisions of ASC Topic 325, Investments-Other, Beneficial Interests in Securitized Financial Assets, (“ASC 325”), based on the anticipated yield and the estimated cash flows over the projected life of the investment. Yields are revised when there are changes in actual or estimated cash flows due to changes in prepayments and/or re-investments, credit losses or asset pricing. Changes in estimated yield are recognized as an adjustment to the estimated yield over the remaining life of the investment from the date the estimated yield was changed.

 

Payment-in-Kind Interest

 

The Company holds debt and preferred equity investments in its portfolio that contain a payment-in-kind (“PIK”) interest provision. The PIK interest, which represents contractually deferred interest added to the investment balance that is generally due at maturity, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. The Company stops accruing PIK interest if it is expected that the issuer will not be able to pay all principal and interest when due.

 

Dividend Income

Dividends income is recorded in the consolidated statements of operations when earned.


Structuring and Advisory Fee Income

 

Structuring and advisory fee income represents various fee income earned and received performing certain investment structuring and advisory activities during the closing of new investments.

 

Other Income

 

Other income includes dividends received, prepayment income fees, and origination, monitoring, administration and amendment fees and is recorded in the consolidated statements of operations when earned.

 

Deferred Debt Financing Costs

 

Financing costs incurred in connection with our credit facilitythe Encina Credit Facility and notes are deferred and amortized using the straight-line method over the life of the respective facility and debt securities. Financing costs incurred in connection with our SBAthe SBA-guaranteed debentures issued to SBIC LP and SBIC II LP are deferred and amortized using the straight-line method over the life of the debentures.

 

The Company presents deferred debt financing costs on the balance sheet as a contra-liability as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts.

 

Realized Loss on Extinguishment of Debt 

Upon the repayment of debt obligations that are deemed to be extinguishments, the difference between the principal amount due at maturity adjusted for any unamortized debt issuance costs is recognized as a loss (i.e., the unamortized debt issuance costs are recognized as a loss upon extinguishment of the underlying debt obligation).

Contingencies

 

In the ordinary course of business, the Company may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Company. Based on its history and experience, management feelsreasonably believes that the likelihood of such an event is remote. Therefore, the Company has not accrued any liabilities in connection with such indemnifications.

 

In the ordinary course of business, the Company may directly or indirectly be a defendant or plaintiff in legal actions with respect to bankruptcy, insolvency or other types of proceedings. Such lawsuits may involve claims that could adversely affect the value of certain financial instruments owned by the Company.

 

Income Taxes

 

The Company has elected, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code and, among other things, intends to make the requisite distributions to its stockholders which will relieveCode. By meeting these requirements, the Company fromwill not be subject to corporate federal income taxes.taxes on ordinary income or capital gains timely distributed to stockholders. Therefore, no provision has been recorded for federal income taxes, except as related to the Taxable Blockers and long-term capital gains, when applicable.

 

In order to qualify as a RIC, among other requirements, the Company is required to timely distribute to its stockholders at least 90.0%90% of its investment“investment company taxable income,income”, as defined by the Code, for each fiscal tax year. The Company will be subject to a nondeductible U.S. federal excise tax of 4.0%4% on undistributed income if it does not distribute at least (1) 98.0%98% of its net ordinary income in any calendar year, (2) 98.2% of its capital gain net income for each one-year period ending on October 31and (3) any net ordinary income and capital gain net income that it recognized for preceding years, but were not distributed during such year, and on which the Company paid no U.S federal income tax.

 

Depending on the level of investment company taxable income earned in a tax year and the amount of net capital gains recognized in such tax year, the Company may choose to carry forward investment company taxable income and net capital gains in excess of current year dividend distributions into the next tax year and pay the 4.0% U.S. federal excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual investment company taxable income will be in excess of estimated current year dividend distributions for U.S. federal excise tax purposes, the Company accrues the U.S. federal excise tax, if any, on estimated excess taxable income as taxable income is earned.

 

In accordance with certain applicable U.S. Treasury regulations and private letter rulingspublished guidance issued by the Internal Revenue Service (“IRS”), a publicly offered RIC may treat a distribution of its own stock as fulfillingcounting toward its RIC distribution requirements if each stockholder may elect to receive his, her, or herits entire distribution in either cash or stock of the RIC subject to a limitation onRIC. This published guidance indicates that the rule will apply where the aggregate amount of cash to be distributed to all stockholders which limitation must beis not at least 20.0% of the aggregate declared distribution. IfUnder the published guidance, if too many stockholders elect to receive cash, each stockholderthe cash available for distribution must be allocated among the stockholders electing to receive cash will receive a pro rata amount of cash (with the balance of the distribution paid in stock). In no event will any stockholder, electing to receive cash, receive less than 20.0% of his or her entire distribution in cash. If these and certain other requirements are met, for U.S. federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock.

 


The Company may utilize wholly-ownedwholly owned holding companies taxed under Subchapter C of the Code or tax blockers, when making equity investments in portfolio companies taxed as pass-through entities to meet its source-of-income requirements as a RIC. Taxable Blockers are consolidated in the Company’s U.S. GAAP financial statements and may result in current and deferred federal and state income tax expense with respect to income derived from those investments. Such income, net of applicable income taxes, is not included in the Company’s tax-basis net investment income until distributed by the Taxable Blocker, which may result in timing and character differences between the Company’s U.S. GAAP and tax-basis net investment income and realized gains and losses. Income tax expense or benefit from Taxable Blockers related to net investment income are included in total operating expenses, while any expense or benefit related to federal or state income tax originated for capital gains and losses are included together with the applicable net realized or unrealized gain or loss line item. Deferred tax assets of the Taxable Blockers are reduced by a valuation allowance when, in the opinion of management, it is more-likely than-not that some portion or all of the deferred tax assets will not be realized.

 

FASB ASC Topic 740, Income Taxes, (“ASC 740”), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet a “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current period. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the consolidated statements of operations. During the fiscal year ended February 28, 2021, the Company did not incur any interest or penalties. Although we file federal and state tax returns, our major tax jurisdiction is federal. The 2018, 2019, 2020 and 2021 federal tax years for the Company remain subject to examination by the IRS. As of May 31,November 30, 2021 and February 28, 2021, there were no uncertain tax positions. The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change significantly in the next 12 months.

 

Dividends

 

Dividends to common stockholders are recorded on the ex-dividend date. The amount to be paid out as a dividend is determined by the board of directors. Net realized capital gains, if any, are generally distributed at least annually, although we may decide to retain suchsome or all of our net capital gains for reinvestment.

 

We have adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of our dividend distributions on behalf of our stockholders unless a stockholder elects to receive cash. As a result, if our board of directors authorizes, and we declare, a cash dividend, then our stockholders who have not “opted out” of the DRIP by the dividend record date will have their cash dividends automatically reinvested into additional shares of our common stock, rather than receiving the cash dividends. We have the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator.

 

Capital Gains Incentive Fee

 

The Company records an expense accrual on the consolidated statements of operations relating to the capital gains incentive fee payable by the Company to the Manager on the consolidated statements of assets and liabilities by the Company to the Manager when the net realized and unrealized gain on its investments exceed all net realized and unrealized capital losses on its investments given the fact thatbecause a capital gains incentive fee would be owed to the Manager if the Company were to liquidate its investment portfolio at such time.

 

The actual incentive fee payable to the Company’s Manager related to capital gains will be determined and payable in arrears at the end of each fiscal year and only reflected those realized capital gains net of realized and unrealized losses for the period.

 

New Accounting Pronouncements

 

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The Company has agreements that have LIBOR as a reference rate with certain portfolio companies and under the Encina Credit Facility. Many of these agreements (including the credit agreements relating to the Encina Credit Facility) include an alternative successor rate or language for choosing an alternative successor rate when LIBOR reference is no longer considered to be appropriate. With respect to other agreements, the Company intends to work with its portfolio companies to modify agreements to choose an alternative successor rate. Contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. The standard is effective as of March 12, 2020 through December 31, 2022. Management does not believe this optional guidance has a material impact on the Company’s consolidated financial statements and disclosures.

 


Risk Management

 

In the ordinary course of its business, the Company manages a variety of risks, including market risk and credit risk. Market risk is the risk of potential adverse changes to the value of investments because of changes in market conditions such as interest rate movements and volatility in investment prices.

 

Credit risk is the risk of default or non-performance by portfolio companies, equivalent to the investment’s carrying amount. The Company is also exposed to credit risk related to maintaining all of its cash and cash equivalents, including those in reserve accounts, at a major financial institution and credit risk related to any of its derivative counterparties.

 

The Company has investments in lower rated and comparable quality unrated high yield bonds and bank loans. Investments in high yield investments are accompanied by a greater degree of credit risk. The risk of loss due to default by the issuer is significantly greater for holders of high yield securities, because such investments are generally unsecured and are often subordinated to other creditors of the issuer.

 

Note 3. Investments

 

As noted above, the Company values all investments in accordance with ASC 820. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between independent market participants at the measurement date.

 

ASC 820 establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

 

Based on the observability of the inputs used in the valuation techniques, the Company is required to provide disclosures on fair value measurements according to the fair value hierarchy. The fair value hierarchy ranks the observability of the inputs used to determine fair values. Investments carried at fair value are classified and disclosed in one of the following three categories:

 

●Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.

 

●Level 2— Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date. Such inputs may be quoted prices for similar assets or liabilities, quoted markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full character of the financial instrument, or inputs that are derived principally from, or corroborated by, observable market information. Investments whichthat are generally included in this category include illiquid debt securities and less liquid, privately held or restricted equity securities, for which some level of recent trading activity has been observed.observed.

 

●Level 3—Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs may be based on the Company’s own assumptions about how market participants would price the asset or liability or may use Level 2 inputs, as adjusted, to reflect specific investment attributes relative to a broader market assumption. Even if observable market data for comparable performance or valuation measures (earnings multiples, discount rates, other financial/valuation ratios, etc.) are available, such investments are grouped as Level 3 if any significant data point that is not also market observable (private company earnings, cash flows, etc.) is used in the valuation technique. We use multiple techniques for determining fair value based on the nature of the investment and experience with those types of investments and specific portfolio companies. The selections of the valuation techniques and the inputs and assumptions used within those techniques often require subjective judgements and estimates. These techniques include market comparables, discounted cash flows and enterprise value waterfalls. Fair value is best expressed as a range of values from which the Company determines a single best estimate. The types of inputs and assumptions that may be considered in determining the range of values of our investments include the nature and realizable value of any collateral, the portfolio company’s ability to make payments, market yield trend analysis and volatility in future interest rates, call and put features, the markets in which the portfolio company does business, comparison to publicly traded companies, discounted cash flows and other relevant factors.

 


In addition to using the above inputs in investment valuations, the Company continues to employ the valuation policy approved by the board of directors that is consistent with ASC 820 and the 1940 Act (see Note 2). Consistent with our valuation policy, we evaluate the source of inputs, including any markets in which our investments are trading, in determining fair value.

 


The following table presents fair value measurements of investments, by major class, as of November 30, 2021 (dollars in thousands), according to the fair value hierarchy:

The following table presents fair value measurements of investments, by major class, as of May 31, 2021 (dollars in thousands), according to the fair value hierarchy:
             
  Fair Value Measurements 
  Level 1  Level 2  Level 3  Total 
First lien term loans $          -  $          -  $516,154  $516,154 
Second lien term loans  -   -   25,422   25,422 
Unsecured term loans  -   -   2,169   2,169 
Structured finance securities  -   -   53,421   53,421 
Equity interests  -   -   80,607   80,607 
Total $-  $-  $677,773  $677,773 

  Fair Value Measurements 
  Level 1  Level 2  Level 3  Total 
First lien term loans $-  $-  $505,619  $505,619 
Second lien term loans  -   -   44,416   44,416 
Unsecured term loans  -   -   2,738   2,738 
Structured finance securities  -   -   40,665   40,665 
Equity interests  -   -   68,355   68,355 
Total $-  $-  $661,793  $661,793 

 

The following table presents fair value measurements of investments, by major class, as of February 28, 2021 (dollars in thousands), according to the fair value hierarchy:

 

  Fair Value Measurements 
  Level 1  Level 2  Level 3  Total 
First lien term loans $-  $-  $440,456  $440,456 
Second lien term loans  -   -   24,930   24,930 
Unsecured term loans  -   -   2,141   2,141 
Structured finance securities  -   -   49,779   49,779 
Equity interests  -   -   37,007   37,007 
Total $-  $-  $554,313  $554,313 

 

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the threenine months ended May 31,November 30, 2021 (dollars in thousands):

 

  First lien term loans  Second lien term loans  Unsecured term loans  Structured finance securities  Equity interests  Total 
Balance as of February 28, 2021 $440,456  $24,930  $2,141  $49,779  $37,007  $554,313 
Payment-in-kind and other adjustments to cost  231           (435)  396   192 
Net accretion of discount on investments  314   7       -   -   321 
Net change in unrealized appreciation (depreciation) on investments  497   485   28   4,077   11,725   16,812 
Purchases  87,321               31,845   119,166 
Sales and repayments  (12,665)              (2,276)  (14,941)
Net realized gain (loss) from investments                  1,910   1,910 
Balance as of May 31, 2021 $516,154  $25,422  $2,169  $53,421  $80,607  $677,773 
Net change in unrealized appreciation (depreciation) for the period relating to those Level 3 assets that were still held by the Company at the end of the period $838  $485  $28  $4,076  $13,568  $18,995 

  First lien term loans  Second lien term loans  Unsecured term loans  Structured finance securities  Equity interests  Total 
Balance as of February 28, 2021 $440,456  $24,930  $2,141  $49,779  $37,007  $554,313 
Payment-in-kind and other adjustments to cost  309   70   498   (546)  790   1,121 
Net accretion of discount on investments  1,346   22   -   -   -   1,368 
Net change in unrealized appreciation (depreciation) on investments  2,292   (431)  99   (68)  12,254   14,146 
Purchases  226,786   19,825   -   -   47,143   293,754 
Sales and repayments  (165,570)  -   -   (8,360)  (42,307)  (216,237)
Net realized gain (loss) from investments  -   -   -   (140)  13,468   13,328 
Balance as of November 30, 2021 $505,619  $44,416  $2,738  $40,665  $68,355  $661,793 
Net change in unrealized appreciation (depreciation) for the period relating to those Level 3 assets that were still held by the Company at the end of the period $3,597  $(431) $99  $386  $11,837  $15,488 

 


Purchases, payment-in-kind and other adjustments to cost include purchases of new investments at cost, effects of refinancing/restructuring, accretion/amortization of income from discount/premium on debt securities, and PIK interests.

 

Sales and repayments represent net proceeds received from investments sold and principal paydowns received during the period.

 

Transfers and restructurings, if any, are recognized at the beginning of the period in which they occur. There were no transfers or restructures in or out of Levels 1, 2 or 3 during the threenine months ended May 31,November 30, 2021.

 


The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the threenine months ended May 31,November 30, 2020 (dollars in thousands):

 

 First lien term loans  Second lien term loans  Unsecured term loans  Structured finance securities  Equity interests  Total  First lien term loans  Second lien term loans  Unsecured term loans  Structured finance securities  Equity interests  Total 
Balance as of February 29, 2020 $346,233  $73,570  $4,346  $32,470  $29,013  $485,632  $346,233  $73,570  $4,346  $32,470  $29,013  $485,632 
Payment-in-kind and other adjustments to cost  191   466   -   (1,361)  -   (704)  625   1,034   -   (3,061)  -   (1,402)
Net accretion of discount on investments  279   33   -   -   -   312   772   193   -   -   -   965 
Net change in unrealized appreciation (depreciation) on investments  (19,115)  (4,582)  (1,035)  (3,803)  (3,415)  (31,950)  (7,915)  (1,770)  (29)  1,890   (1,547)  (9,371)
Purchases  36,189   -   2,500   -   310   38,999   95,891   -   22,500   -   3,636   122,027 
Sales and repayments  (9,350)  -   -   -   -   (9,350)  (27,929)  (23,000)  -   -   -   (50,929)
Net realized gain (loss) from investments  8   -   -   -   -   8   22   -   -   -   -   22 
Balance as of May 31, 2020 $354,435  $69,487  $5,811  $27,306  $25,908  $482,947 
Balance as of November 30, 2020 $407,699  $50,027  $26,817  $31,299  $31,102  $546,944 
Net change in unrealized appreciation (depreciation) for the year relating to those Level 3 assets that were still held by the Company at the end of the period $(18,880) $(4,583) $(1,034) $(3,804) $(3,414) $(31,715) $(7,636) $(1,722) $(29) $1,889  $(1,546) $(9,044)

 

Transfers and restructurings, if any, are recognized at the beginning of the period in which they occur. There were no transfers or restructures in or out of Levels 1, 2 or 3 during the threenine months ended May 31,November 30, 2020.

 


The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of May 31,November 30, 2021 were as follows (dollars in thousands):

 

 Fair Value  Valuation Technique Unobservable Input Range  Weighted Average*  Fair Value  Valuation Technique Unobservable Input Range Weighted Average* 
First lien term loans $516,154  Market Comparables Market Yield (%) 5.8% - 18.1%  9.6% $505,619  Market Comparables Market Yield (%) 6.0% - 14.6%  8.7%
       EBITDA Multiples (x) 6.8x 6.8x       EBITDA Multiples (x) 6.7x  6.7x
       Revenue Multiples (x) 4.7x - 11.2x  8.2x       Revenue Multiples (x) 3.5x - 6.7x  5.6x
Second lien term loans  25,422  Market Comparables Market Yield (%) 10.0% - 23.7%  17.6%  44,416  Market Comparables Market Yield (%) 8.7% - 31.5%  15.1%
       EBITDA Multiples (x) 7.5x 7.5x       EBITDA Multiples (x) 7.5x  7.5x
Unsecured term loans  2,169  Market Comparables Market Yield (%) 25.2% 25.2%  2,738  Market Comparables Market Yield (%) 15.8%  15.8%
       EBITDA Multiples (x) 5.2x 5.2x
Structured finance securities  53,421  Discounted Cash Flow Discount Rate (%) 10.0% - 15.0%  13.9%  40,665  Discounted Cash Flow Discount Rate (%) 10.0% - 15.0%  14.2%
       Recovery Rate (%) 35% - 70%  70.0%       Recovery Rate (%) 35% - 70%  70.0%
       Prepayment Rate (%) 20.0% 20.0%       Prepayment Rate (%) 20.0%  20.0%
Equity interests  80,607  Enterprise Value Waterfall EBITDA Multiples (x) 3.3x - 74.0x  32.6x  68,355  Enterprise Value Waterfall EBITDA Multiples (x) 2.6x - 28.6x  9.1x
       Revenue Multiples (x) 0.5x - 21.8x  9.2x       Revenue Multiples (x) 1.0x - 11.7x  6.3x
Total $677,773            $661,793         

 

*The weighted average in the table above is calculated based on each investment’s fair value weighting, using the applicable unobservable input.

 

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of February 28, 2021 were as follows (dollars in thousands):

 Fair Value  Valuation Technique Unobservable Input Range  Weighted Average*  Fair Value  Valuation Technique Unobservable Input Range Weighted Average* 
First lien term loans $440,456  Market Comparables Market Yield (%) 5.8% - 18.7%  9.7% $440,456  Market Comparables Market Yield (%) 5.8% - 18.7%  9.7%
       EBITDA Multiples (x) 6.8x 6.8x       EBITDA Multiples (x) 6.8x  6.8x
       Revenue Multiples (x) 4.1x - 8.0x  7.5x       Revenue Multiples (x) 4.1x - 8.0x  7.5x
Second lien term loans  24,930  Market Comparables Market Yield (%) 10.0% - 24.5%  16.5%  24,930  Market Comparables Market Yield (%) 10.0% - 24.5%  16.5%
       EBITDA Multiples (x) 7.5x 7.5x       EBITDA Multiples (x) 7.5x  7.5x
Unsecured term loans  2,141  Market Comparables Market Yield (%) 31.1% 31.1%  2,141  Market Comparables Market Yield (%) 31.1%  31.1%
       EBITDA Multiples (x) 5.2x 5.2x       EBITDA Multiples (x) 5.2x  5.2x
Structured finance securities  49,779  Discounted Cash Flow Discount Rate (%) 10.0% - 15.00%  13.8%  49,779  Discounted Cash Flow Discount Rate (%) 10.0% - 15.00%  13.8%
       Recovery Rate (%) 35.0% - 70.0%  70.0%       Recovery Rate (%) 35.0% - 70.0%  70.0%
       Prepayment Rate (%) 20.0% 20.0%       Prepayment Rate (%) 20.0%  20.0%
Equity interests  37,007  Enterprise Value Waterfall EBITDA Multiples (x) 4.0x - 14.0x  9.7x  37,007  Enterprise Value Waterfall EBITDA Multiples (x) 4.0x - 14.0x  9.7x
       Revenue Multiples (x) 0.5x - 38.3x  4.6x       Revenue Multiples (x) 0.5x - 38.3x  4.6x
Total $554,313            $554,313         

 

*The weighted average in the table above is calculated based on each investment’s fair value weighting, using the applicable unobservable input.

26


For investments utilizing a market comparables valuation technique, a significant increase (decrease) in the market yield, in isolation, would result in a significantly lower (higher) fair value measurement, and a significant increase (decrease) in any of the earnings before interest, tax, depreciation and amortization (“EBITDA”) or revenue valuation multiples, in isolation, would result in a significantly higher (lower) fair value measurement. For investments utilizing a discounted cash flow valuation technique, a significant increase (decrease) in the discount rate, and prepayment rate, in isolation, would result in a significantly lower (higher) fair value measurement while a significant increase (decrease) in recovery rate, in isolation, would result in a significantly higher (lower) fair value measurement. For investments utilizing a market quote in deriving a value, a significant increase (decrease) in the market quote, in isolation, would result in a significantly higher (lower) fair value measurement.

 

The composition of our investments as of May 31,November 30, 2021 at amortized cost and fair value was as follows (dollars in thousands):

 

  Investments at Amortized Cost   Amortized Cost Percentage of Total Portfolio   Investments at Fair Value   Fair Value Percentage of Total Portfolio  Investments at Amortized Cost  Amortized Cost Percentage of Total Portfolio  Investments at Fair Value  Fair Value Percentage of Total Portfolio 
First lien term loans $516,790   78.7% $516,154   76.2% $504,460   78.4% $505,619   76.4%
Second lien term loans  29,898   4.6   25,422   3.7   49,808   7.8   44,416   6.7 
Unsecured term loans  2,261   0.3   2,169   0.3   2,759   0.4   2,738   0.4 
Structured finance securities  51,287   7.8   53,421   7.9   42,676   6.6   40,665   6.2 
Equity interests  56,425   8.6   80,607   11.9   43,644   6.8   68,355   10.3 
Total $656,661   100.0% $677,773   100.0% $643,347   100.0% $661,793   100.0%

 

The composition of our investments as of February 28, 2021 at amortized cost and fair value was as follows (dollars in thousands):

 

   Investments at Amortized Cost   Amortized Cost Percentage of Total Portfolio   Investments at Fair Value   Fair Value Percentage of Total Portfolio 
First lien term loans $441,590   80.3% $440,456   79.5%
Second lien term loans  29,891   5.4   24,930   4.4 
Unsecured term loans  2,261   0.4   2,141   0.4 
Structured finance securities  51,722   9.4   49,779   9.0 
Equity interests  24,550   4.5   37,007   6.7 
Total $550,014   100.0% $554,313   100.0%

  Investments at Amortized Cost  Amortized Cost Percentage of Total Portfolio  Investments at Fair Value  Fair Value Percentage of Total Portfolio 
First lien term loans $441,590   80.3% $440,456   79.5%
Second lien term loans  29,891   5.4   24,930   4.4 
Unsecured term loans  2,261   0.4   2,141   0.4 
Structured finance securities  51,722   9.4   49,779   9.0 
Equity interests  24,550   4.5   37,007   6.7 
Total $550,014   100.0% $554,313   100.0%

 

For loans and debt securities for which market quotations are not available, we determine their fair value based on third party indicative broker quotes, where available, or the inputs that a hypothetical market participant would use to value the security in a current hypothetical sale using a market comparables valuation technique. In applying the market comparables valuation technique, we determine the fair value based on such factors as market participant inputs including synthetic credit ratings, estimated remaining life, current market yield and interest rate spreads of similar securities as of the measurement date. If, in our judgment, the market comparables technique is not sufficient or appropriate, we may use additional techniques such as an asset liquidation or expected recovery model.

 

For equity securities of portfolio companies and partnership interests, we determine the fair value using an enterprise value waterfall valuation technique. Under the enterprise value waterfall valuation technique, we determine the enterprise fair value of the portfolio company and then waterfall the enterprise value over the portfolio company’s securities in order of their preference relative to one another. To estimate the enterprise value of the portfolio company, we weigh some or all of the traditional market valuation techniques and factors based on the individual circumstances of the portfolio company in order to estimate the enterprise value. The techniques for performing investments may be based on, among other things: valuations of comparable public companies, recent sales of private and public comparable companies, discounting the forecasted cash flows of the portfolio company, third party valuations of the portfolio company, considering offers from third parties to buy the company, estimating the value to potential strategic buyers and considering the value of recent investments in the equity securities of the portfolio company. For non-performing investments, we may estimate the liquidation or collateral value of the portfolio company’s assets and liabilities. We also take into account historical and anticipated financial results.

 


Our investment in Saratoga CLO is carried at fair value, which is based on a discounted cash flow valuation technique that utilizes prepayment, re-investment and loss inputs based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and comparable yields for equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by our Manager and recommended to our board of directors. Specifically, we use Intex cash flows, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The cash flows use a set of inputs including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The inputs are based on available market data and projections provided by third parties as well as management estimates. In connection with the refinancing of the Saratoga CLO liabilities, we ran Intex models based on inputs about the refinanced Saratoga CLO’s structure, including capital structure, cost of liabilities and reinvestment period. We use the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine a valuation for our investment in Saratoga CLO at May 31,November 30, 2021. The inputs at May 31,November 30, 2021 for the valuation model include:

 

●Default rate: 2%

 

●Recovery rate: 35% -70%

 

●Discount rate: 10% – 15%

 

●Prepayment rate: 20%

 

●Reinvestment rate / price: L+365bps / $99.00$99.25

 

Investment Concentration

 

Set forth is a brief description of each portfolio company in which the fair value of our investment represents greater than 5% of our total assets as of May 31,November 30, 2021.

 

CLEO Communications Holding, LLC

CLEO Communications Holding, LLC (“Cleo”) is a provider of technology enabled data communication and integration platform for daily business transactions. Cleo’s platform allows for the automation of business-to-business transaction information for customers operating in the retail, manufacturing, logistics and the healthcare verticals. The platform also allows for internal application-to-application communication, allowing customers’ core enterprise software applications to easily share and transfer data.

Destiny Solutions Inc.

Destiny Solutions Inc. (“Destiny”) provides a SaaS-based student lifecycle management (“SLM”) software solution used by higher education institutions to manage their continuing education (“CE”) and non-degree educational programs for “non-traditional” students who fall outside of the “traditional” student profile. Traditional students are full-time students working toward an undergraduate, graduate, or doctorate degree. Destiny’s software acts as the ERP, CRM, e-commerce platform, and student information management system for non-traditional student programs.

Hematerra Holdings Company, LLC

 

HemaTerra Holding Company, LLC (“HemaTerra”) provides SaaS-based software solutions addressing complex supply chain issues across a variety of medical environments, including blood, plasma, tissue, implants and DNA sample management, to customers in blood centers, hospitals, pharmaceuticals, and law enforcement settings.

Saratoga Investment Corp. CLO 2013-1, Ltd.

 

The Company has a collateral management agreement with Saratoga CLO, pursuant to which the Company acts as its collateral manager. The Saratoga CLO invests primarily in senior secured first lien term loans. The Company also holds an investment in the subordinated note and Class F-R-3.F-2-R-3 Notes of the Saratoga CLO.

 


Note 4. Investment in Saratoga Investment Corp. CLO 2013-1, Ltd. (“Saratoga CLO”)

 

On January 22, 2008, the Company entered into a collateral management agreement with Saratoga CLO, pursuant to which the Company acts as its collateral manager. The Saratoga CLO was initially refinanced in October 2013 with its reinvestment period extended to October 2016. On November 15, 2016, the Company completed a second refinancing of the Saratoga CLO with its reinvestment period extended to October 2018.

 

On December 14, 2018, the Company completed a third refinancing and upsize of the Saratoga CLO (the “2013-1 Reset CLO Notes”). The third Saratoga CLO refinancing, among other things, extended its reinvestment period to January 2021, and extended its legal maturity date to January 2030. A non-call period ending January 2020 was also added. Following this refinancing, the Saratoga CLO portfolio increased its aggregate principal amount from approximately $300.0 million in aggregate principal amount to approximately $500.0 million of predominantly senior secured first lien term loans. In addition to refinancing its liabilities, the Company invested an additional $13.8 million in all of the newly issued subordinated notes of the Saratoga CLO and also purchased $2.5 million in aggregate principal amount of the Class F-R-2 and $7.5 million aggregate principal amount of the Class G-R-2 notes tranches at par, with a coupon of 3M USD LIBOR plus 8.75% and 3M USD LIBOR plus 10.00%, respectively. As part of this refinancing, the Company also redeemed our existing $4.5 million aggregate amount of the Class F notes tranche at par.

 

On February 11, 2020, the Company entered into an unsecured loan agreement with Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd., (“CLO 2013-1 Warehouse 2”) a wholly-ownedwholly owned subsidiary Saratoga CLO.

 

On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. A non-call period ending February 2022 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million of the CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. As of MayAt August 31, 2021, there remained anthe outstanding receivable of $2.6 million was repaid in full.


On August 9, 2021, the Company exchanged its existing $17.9 million Class F-R-3 Notes for such transaction costs which is presented as due from affiliate on$8.5 million Class F-1-R-3 Notes and $9.4 million Class F-2-R-3 Notes at par. On August 11, 2021, the Company’s consolidated statementCompany sold its Class F-1-R-3 Notes to third parties, resulting in a realized loss of assets and liabilities.$0.1 million.

 

The Saratoga CLO remains 100.0% owned and managed by the Company. We receive a base management fee of 0.10% per annum and a subordinated management fee of 0.40% per annum of the outstanding principal amount of Saratoga CLO’s assets, paid quarterly to the extent of available proceeds. Following the third refinancing and the issuance of the 2013-1 Reset CLO Notes on December 14, 2018, we are no longer entitled to an incentive management fee equal to 20.0% of excess cash flow to the extent the Saratoga CLO subordinated notes receive an internal rate of return paid in cash equal to or greater than 12.0%.

 

For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, we accrued management fee income of $0.8 million and $0.6 million, respectively, and interest income of $1.1 million and $0.6$1.1 million, respectively, from the subordinated notes of Saratoga CLO.

For the nine months ended November 30, 2021 and November 30, 2020, we accrued management fee income of $2.4 million and $1.9 million, respectively, and interest income of $3.5 million and $2.4 million, respectively, from the subordinated notes of the Saratoga CLO.

 

As of May 31,November 30, 2021, the aggregate principal amounts of the Company’s investments in the subordinated notes and Class F-R-3F-2-R-3 Notes of the Saratoga CLO was $111.0 million and $17.9$9.4 million, respectively, which had a corresponding fair value of $35.5$31.3 million and $17.9$9.4 million, respectively. The Company determines the fair value of its investment in the subordinated notes of Saratoga CLO based on the present value of the projected future cash flows of the subordinated notes over the life of Saratoga CLO. As of May 31,November 30, 2021, Saratoga CLO had investments with a principal balance of $685.6$683.2 million and a weighted average spread over LIBOR of 3.8%3.7% and had debt with a principal balance of $611.0 million with a weighted average spread over LIBOR of 2.2%. As a result, Saratoga CLO earns a “spread” between the interest income it receives on its investments and the interest expense it pays on its debt and other operating expenses, which is distributed quarterly to the Company as the holder of its subordinated notes. As of May 31,November 30, 2021, the present value of the projected future cash flows of the subordinated notes was approximately $36.2$31.7 million, using a 15.0% discount rate. The Company’s total investment in the subordinate notes of Saratoga CLO is $57.8 million, which consists of investments of $30 million in January 2008, $13.8 million in December 2018 and $14.0 million in February 2021; to date, the Company has since received distributions of $68.4$70.8 million, management fees of $25.7$27.8 million and incentive fees of $1.2 million. In conjunction with the third refinancing of the 2013-1 Reset CLO Notes on December 14, 2018, the Company is no longer entitled to receive an incentive management fee from Saratoga CLO.

 


As of February 28, 2021, the Company determined that the fair value of its investment in the subordinated notes of Saratoga CLO was $31.4 million. The Company determines the fair value of its investment in the subordinated notes of Saratoga CLO based on the present value of the projected future cash flows of the subordinated notes over the life of Saratoga CLO. As of February 28, 2021, the fair value of its investment in the Class F-R-3 Notes was $18.3 million,million. As of February 28, 2021, Saratoga CLO had investments with a principal balance of $603.7 million and a weighted average spread over LIBOR of 3.8% and had debt with a principal balance of $611.0 million with a weighted average spread over LIBOR of 2.2%. As a result, Saratoga CLO earns a “spread” between the interest income it receives on its investments and the interest expense it pays on its debt and other operating expenses, which is distributed quarterly to the Company as the holder of its subordinated notes. As of February 28, 2021, the present value of the projected future cash flows of the subordinated notes was approximately $31.7 million, using a 15.0% discount rate.

 

Below is certain financial information from the separate financial statements of Saratoga CLO as of May 31,November 30, 2021 (unaudited) and February 28, 2021 and for the three and nine months ended May 31,November 30, 2021 (unaudited) and May 31,November 30, 2020 (unaudited).

 

26

Saratoga Investment Corp. CLO 2013-1, Ltd.

Statements of Assets and Liabilities

 

  May 31, 2021  February 28, 2021 
  (unaudited)    
ASSETS      
Investments at fair value      
Loans at fair value (amortized cost of $676,759,933 and $594,722,350, respectively) $672,967,501  $591,518,866 
Equities at fair value (amortized cost of $385,327 and $527,124, respectively)  467,214   501,175 
Total investments at fair value (amortized cost of $677,145,260 and $595,249,474, respectively)  673,434,715   592,020,041 
Cash and cash equivalents  10,710,367   114,145,406 
Receivable from open trades  4,531,236   1,901,754 
Interest receivable (net of reserve of $37,834 and $35,000, respectively)  2,027,683   1,497,333 
Prepaid expenses and other assets  71,753   118,868 
Total assets $690,775,754  $709,683,402 
         
LIABILITIES        
Interest payable $3,847,101  $124,233 
Payable from open trades  41,198,406   66,298,568 
Accrued base management fee  170,576   6,930 
Accrued subordinated management fee  682,301   27,715 
Accounts payable and accrued expenses  78,545   809,760 
Due to Affiliate  2,600,000   2,600,000 
Saratoga Investment Corp. CLO 2013-1, Ltd. Notes:        
Class A-1-R-3 Senior Secured Floating Rate Notes  357,500,000   357,500,000 
Class A-2-R-3 Senior Secured Floating Rate Notes  65,000,000   65,000,000 
Class B-FL-R-3 Senior Secured Floating Rate Notes  60,500,000   60,500,000 
Class B-FXD-R-3 Senior Secured Fixed Rate Notes  11,000,000   11,000,000 
Class C-FL-R-3 Deferrable Mezzanine Floating Rate Notes  26,000,000   26,000,000 
Class C-FXD-R-3 Deferrable Mezzanine Fixed Rate Notes  6,500,000   6,500,000 
Class D-R-3 Deferrable Mezzanine Floating Rate Notes  39,000,000   39,000,000 
Discount on Class D-R-3 Notes  (286,302)  (292,368)
Class E-R-3 Deferrable Mezzanine Floating Rate Notes  27,625,000   27,625,000 
Discount on Class E-R-3 Notes  (2,974,358)  (3,037,380)
Class F-R-3 Notes Deferrable Junior Floating Rate Notes  17,875,000   17,875,000 
Deferred debt financing costs  (2,229,317)  (2,276,780)
Subordinated Notes  111,000,000   111,000,000 
Discount on Subordinated Notes  (47,042,654)  (48,039,412)
Total liabilities $718,044,298  $738,221,266 
         
NET ASSETS        
Ordinary equity, par value $1.00, 250 ordinary shares authorized, 250 and 250 common shares issued and outstanding, respectively $250  $250 
Total distributable earnings (loss)  (27,268,794)  (28,538,114)
Total net assets  (27,268,544)  (28,537,864)
Total liabilities and net assets $690,775,754  $709,683,402 

  November 30,
2021		  February 28,
2021		 
  (unaudited)    
ASSETS      
Investments at fair value      
Loans at fair value (amortized cost of $675,359,709 and $594,722,350, respectively) $666,709,161  $591,518,866 
Equities at fair value  (amortized cost of $0 and $527,124, respectively)  -   501,175 
Total investments at fair value (amortized cost of $675,359,709 and $595,249,474, respectively)  666,709,161   592,020,041 
Cash and cash equivalents  8,059,084   114,145,406 
Receivable from open trades  8,380,929   1,901,754 
Interest receivable (net of reserve of $0 and $35,000, respectively)  2,033,523   1,497,333 
Prepaid expenses and other assets  5,894   118,868 
Total assets $685,188,591  $709,683,402 
         
LIABILITIES        
Interest payable $1,655,129  $124,233 
Payable from open trades  43,299,500   66,298,568 
Accrued base management fee  72,548   6,930 
Accrued subordinated management fee  290,192   27,715 
Accounts payable and accrued expenses  134,149   809,760 
Due to Affiliate  -   2,600,000 
Saratoga Investment Corp. CLO 2013-1, Ltd. Notes:        
Class A-1-R-3 Senior Secured Floating Rate Notes  357,500,000   357,500,000 
Class A-2-R-3 Senior Secured Floating Rate Notes  65,000,000   65,000,000 
Class B-FL-R-3 Senior Secured Floating Rate Notes  60,500,000   60,500,000 
Class B-FXD-R-3 Senior Secured Fixed Rate Notes  11,000,000   11,000,000 
Class C-FL-R-3 Deferrable Mezzanine Floating Rate Notes  26,000,000   26,000,000 
Class C-FXD-R-3 Deferrable Mezzanine Fixed Rate Notes  6,500,000   6,500,000 
Class D-R-3 Deferrable Mezzanine Floating Rate Notes  39,000,000   39,000,000 
Discount on Class D-R-3 Notes  (274,235)  (292,368)
Class E-R-3 Deferrable Mezzanine Floating Rate Notes  27,625,000   27,625,000 
Discount on Class E-R-3 Notes  (2,848,999)  (3,037,380)
Class F-1-R-3 Notes Deferrable Junior Floating Rate Notes  8,500,000   17,875,000 
Class F-2-R-3 Notes Deferrable Junior Floating Rate Notes  9,375,000   - 
Deferred debt financing costs  (2,134,391)  (2,276,780)
Subordinated Notes  111,000,000   111,000,000 
Discount on Subordinated Notes  (45,059,972)  (48,039,412)
Total liabilities $717,133,921  $738,221,266 
NET ASSETS        
Ordinary equity, par value $1.00, 250 ordinary shares authorized, 250 and 250 common shares issued and outstanding, respectively $250  $250 
Total distributable earnings (loss)  (31,945,580)  (28,538,114)
Total net assets  (31,945,330)  (28,537,864)
Total liabilities and net assets $685,188,591  $709,683,402 

 

See accompanying notes to financial statements.


27

Saratoga Investment Corp. CLO 2013-1, Ltd.

Statements of Operations

(unaudited)

 

 For the three months ended  For the three months ended For the nine months ended 
 May 31, 2021  May 31, 2020  November 30,
2021		 November 30,
2020		 November 30,
2021		 November 30,
2020		 
INVESTMENT INCOME              
Total interest from investments $7,747,740  $7,213,489  $7,423,609  $6,646,110   23,037,547   20,297,400 
Interest from cash and cash equivalents  572   3,287   -   191   691   3,692 
Other income  317,057   109,641   164,151   174,585   681,528   469,195 
Total investment income  8,065,369   7,326,417   7,587,760   6,820,886   23,719,766   20,770,287 
                
EXPENSES                        
Interest and debt financing expenses  4,836,177   7,288,568   7,122,812   5,773,135   17,528,546   18,831,060 
Base management fee  163,646   125,521   162,752   124,763   489,323   376,765 
Subordinated management fee  654,586   502,085   651,010   499,054   1,957,293   1,507,060 
Professional fees  35,666   88,490   75,574   146,170   220,931   329,442 
Trustee expenses  -   51,858   70,558   54,706   191,887   160,440 
Other expense  59,783   28,052   152,484   1,935   266,423   42,215 
Total expenses  5,749,858   8,084,574   8,235,190   6,599,763   20,654,403   21,246,982 
NET INVESTMENT INCOME (LOSS)  2,315,511   (758,157)  (647,430)  221,123   3,065,363   (476,695)
                        
REALIZED AND UNREALIZED LOSS ON INVESTMENTS                        
Net realized loss from investments  (565,094)  (1,803,884)  (662,289)  (3,089,206)  (1,051,714)  (9,231,676)
Net change in unrealized depreciation on investments  (481,097)  (31,575,429)
Net change in unrealized appreciation (depreciation) on investments  (4,277,923)  14,923,956   (5,421,115)  9,806,306 
Net realized and unrealized gain (loss) on investments  (1,046,191)  (33,379,313)  (4,940,212)  11,834,750   (6,472,829)  574,630 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $1,269,320  $(34,137,470) $(5,587,642) $12,055,873  $(3,407,466) $97,935 

 

See accompanying notes to financial statements

 


Saratoga Investment Corp. CLO 2013-1, Ltd.

Schedule of Investments

May 31,November 30, 2021

(unaudited)

Issuer Name Industry Asset
Name		 Asset
Type		 Reference Rate/Spread LIBOR Floor Current Rate
(All In)		 Maturity Date Principal/
Number of Shares		 Cost Fair Value
Fusion Connect Warrant Telecommunications Warrants Equity  -  -   -   -  -  32,832   -   - 
ABB Con-Cise Optical Group LLC Consumer goods: Non-durable First Lien Loan  6M USD LIBOR+  5.00%  1.00%  6.00% 6/15/2023 $2,044,269  $2,034,953  $1,967,098 
ADMI Corp. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.84% 4/30/2025  1,935,276   1,930,002   1,898,989 
Adtalem Global Education Inc. Services: Business First Lien Loan  1M USD LIBOR+  4.50%  0.75%  5.25% 8/11/2028  2,000,000   1,980,847   1,995,000 
Aegis Sciences Corporation Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  5.50%  1.00%  6.50% 5/9/2025  3,159,652   3,143,003   3,049,065 
Agiliti Health Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.88% 1/4/2026  1,487,500   1,480,205   1,472,625 
Agiliti Health Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  2.75%  0.75%  3.50% 1/4/2026  384,464   381,389   382,061 
AHEAD DB Holdings, LLC Services: Business First Lien Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 10/18/2027  2,992,500   2,888,755   2,981,907 
AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense First Lien Loan  6M USD LIBOR+  3.50%  1.00%  4.50% 1/18/2027  1,473,470   1,468,051   1,472,158 
AIS HoldCo, LLC Services: Business First Lien Loan  3M USD LIBOR+  5.00%  0.00%  5.13% 8/15/2025  5,142,632   5,005,997   5,039,780 
Alchemy Copyrights, LLC Media: Diversified & Production First Lien Loan  1M USD LIBOR+  3.00%  0.50%  3.50% 3/10/2028  495,009   491,946   491,297 
Alchemy US Holdco 1, LLC Metals & Mining First Lien Loan  1M USD LIBOR+  5.50%  0.00%  5.59% 10/10/2025  1,654,803   1,639,692   1,648,598 
AlixPartners, LLP Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 2/4/2028  248,750   248,181   247,367 
Alkermes, Inc. Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  2.50%  0.50%  3.00% 3/12/2026  497,500   496,423   490,038 
Allen Media, LLC Media: Diversified & Production First Lien Loan  3M USD LIBOR+  5.50%  0.00%  5.63% 2/10/2027  712,500   704,162   704,933 
Allen Media, LLC Media: Diversified & Production First Lien Loan  3M USD LIBOR+  5.50%  0.00%  5.63% 2/10/2027  783,725   769,688   775,402 
Allen Media, LLC Media: Diversified & Production First Lien Loan  3M USD LIBOR+  5.50%  0.00%  5.63% 2/10/2027  2,954,527   2,943,384   2,923,150 
Alliant Holdings I, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 11/5/2027  1,000,000   998,750   993,930 
Allied Universal Holdco LLC Services: Business First Lien Loan  3M USD LIBOR+  3.75%  0.50%  4.25% 5/12/2028  2,000,000   1,990,006   1,981,000 
Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 4/3/2024  1,223,297   1,219,562   1,108,613 
Altium Packaging LLC Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 1/29/2028  497,500   495,211   488,261 
American Greetings Corporation Media: Advertising, Printing & Publishing First Lien Loan  1M USD LIBOR+  4.50%  1.00%  5.50% 4/6/2024  3,493,509   3,491,643   3,491,343 
American Trailer World Corp Automotive First Lien Loan  1M USD LIBOR+  3.75%  0.75%  4.50% 3/3/2028  1,995,000   1,989,046   1,973,394 
AmeriLife Holdings LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.09% 3/18/2027  1,981,419   1,971,356   1,964,081 
AmWINS Group, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.25%  0.75%  3.00% 2/17/2028  1,985,003   1,961,245   1,955,228 
Anastasia Parent LLC Consumer goods: Non-durable First Lien Loan  3M USD LIBOR+  3.75%  0.00%  3.88% 8/11/2025  970,000   967,180   835,762 
Anchor Glass Container Corporation Containers, Packaging & Glass First Lien Loan  3M USD LIBOR+  2.75%  1.00%  3.75% 12/7/2023  476,356   475,532   413,920 
Anchor Packaging, LLC Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.09% 7/18/2026  989,873   981,515   977,500 
ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  6.00%  0.75%  6.75% 5/24/2027  3,000,000   2,940,079   3,006,240 
AP Core Holdings II LLC High Tech Industries First Lien Loan  1M USD LIBOR+  5.50%  0.75%  6.25% 9/1/2027  2,000,000   1,970,974   1,993,120 
AP Core Holdings II LLC High Tech Industries First Lien Loan  1M USD LIBOR+  5.50%  0.75%  6.25% 9/1/2027  500,000   492,754   498,540 
APi Group DE, Inc. (J2 Acquisition) Services: Business First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 10/1/2026  1,950,000   1,941,671   1,941,479 
APLP Holdings Limited Partnership Energy: Electricity First Lien Loan  1M USD LIBOR+  3.75%  1.00%  4.75% 5/14/2027  917,568   909,036   923,302 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.84% 5/15/2026  2,977,157   2,942,637   2,934,376 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 3/6/2028  995,000   985,774   985,050 
AppLovin Corporation High Tech Industries First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.34% 8/15/2025  992,347   992,347   987,028 
AppLovin Corporation High Tech Industries First Lien Loan  1M USD LIBOR+  3.00%  0.50%  3.50% 10/21/2028  1,500,000   1,496,250   1,488,750 
Aramark Corporation Services: Consumer First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 1/15/2027  2,331,250   2,265,442   2,275,463 
Aramark Corporation Services: Consumer First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 4/1/2028  1,753,715   1,745,601   1,738,914 
ARC FALCON I INC. Chemicals, Plastics, & Rubber First Lien Loan  1M USD LIBOR+  3.75%  0.50%  4.25% 9/23/2028  872,611   868,332   866,250 
ARC FALCON I INC.(a) Chemicals, Plastics, & Rubber First Lien Loan  N/A  3.75%  0.50%  0.00% 9/22/2028  -   (623)  (929)
Arctic Glacier U.S.A., Inc. Beverage, Food & Tobacco First Lien Loan  3M USD LIBOR+  3.50%  1.00%  4.50% 3/20/2024  3,350,967   3,340,070   3,156,477 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  4.25%  0.00%  4.34% 10/1/2025  2,442,442   2,436,497   2,435,311 
ARISTOCRAT LEISURE LIMITED Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  3.75%  1.00%  4.75% 10/19/2024  987,500   974,020   985,239 
ASP BLADE HOLDINGS, INC. Capital Equipment First Lien Loan  1M USD LIBOR+  4.00%  0.50%  4.50% 10/7/2028  100,000   99,505   99,667 
Asplundh Tree Expert, LLC Services: Business First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 9/7/2027  990,000   985,861   982,575 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 2/12/2027  997,500   997,500   989,021 
ASTRO ONE ACQUISITION CORPORATION Consumer goods: Durable First Lien Loan  3M USD LIBOR+  5.50%  0.75%  6.25% 9/15/2028  3,000,000   2,970,220   2,964,990 
Asurion, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.13%  0.00%  3.22% 11/3/2023  266,824   265,961   265,658 
Asurion, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.34% 12/18/2026  3,002,675   2,990,993   2,954,632 
Avast Software S.R.O. (Sybil Finance) High Tech Industries First Lien Loan  3M USD LIBOR+  2.00%  0.00%  2.13% 3/12/2028  1,950,000   1,945,458   1,939,275 


Issuer Name Industry Asset
Name		 Asset
Type		 Reference Rate/Spread LIBOR Floor Current Rate
(All In)		 Maturity Date Principal/
Number of Shares		 Cost Fair Value
Avaya, Inc. Telecommunications First  Lien Loan  1M USD LIBOR+  4.25%  0.00%  4.34% 12/15/2027  1,755,766   1,746,961   1,750,130 
Avaya, Inc. Telecommunications First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.09% 12/15/2027  1,000,000   1,000,000   996,250 
Avison Young (Canada) Inc Services: Business First Lien Loan  3M USD LIBOR+  6.00%  0.00%  6.12% 1/31/2026  3,414,773   3,376,579   3,369,971 
Avolon TLB Borrower 1 (US) LLC Capital Equipment First Lien Loan  1M USD LIBOR+  1.75%  0.75%  2.50% 1/15/2025  1,000,000   892,270   994,770 
Avolon TLB Borrower 1 (US) LLC Capital Equipment First Lien Loan  1M USD LIBOR+  2.25%  0.50%  2.75% 12/1/2027  496,250   491,908   494,741 
AZURITY PHARMACEUTICALS, INC. Healthcare & Pharmaceuticals First Lien Loan  Prime+  5.00%  0.75%  8.25% 9/20/2027  500,000   485,257   486,665 
B&G Foods, Inc. Beverage, Food & Tobacco First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 10/10/2026  706,458   701,479   704,162 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 11/19/2026  1,473,750   1,441,070   1,438,748 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 10/14/2027  1,241,888   1,228,487   1,234,126 
BALL METALPACK, LLC (PE Spray) Containers, Packaging & Glass First Lien Loan  3M USD LIBOR+  4.50%  0.00%  4.68% 7/25/2025  3,874,850   3,863,794   3,845,788 
Belfor Holdings Inc. Services: Consumer First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.09% 4/6/2026  248,728   248,467   248,106 
Belron Finance US LLC Automotive First Lien Loan  3M USD LIBOR+  2.75%  0.50%  3.25% 4/13/2028  1,990,000   1,971,517   1,981,304 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.34% 4/23/2026  992,405   985,999   980,000 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 4/23/2026  1,483,781   1,474,142   1,476,362 
Blucora, Inc. Services: Consumer First Lien Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 5/22/2024  2,445,311   2,439,268   2,439,197 
Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber First Lien Loan  3M USD LIBOR+  2.50%  0.00%  2.64% 3/4/2028  995,000   992,695   990,025 
Bombardier Recreational Products, Inc. Consumer goods: Durable First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.09% 5/24/2027  1,473,800   1,464,462   1,451,457 
Boxer Parent Company, Inc. High Tech Industries First Lien Loan  3M USD LIBOR+  3.75%  0.00%  3.88% 10/2/2025  524,359   524,359   518,460 
Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  4.25%  0.00%  4.38% 9/5/2025  970,000   967,183   967,274 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.59% 3/5/2026  995,000   995,000   984,682 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M  USD LIBOR+  3.00%  0.00%  3.09% 1/22/2027  2,986,688   2,980,890   2,935,048 
Brookfield WEC Holdings Inc. Energy: Electricity First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 8/1/2025  1,481,269   1,483,597   1,460,131 
Brooks Automation, Inc. High Tech Industries First Lien Loan  3M USD SOFR+  3.35%  0.50%  3.85% 11/17/2028  1,000,000   994,999   993,130 
Buckeye Partners, L.P. Utilities: Oil & Gas First Lien Loan  1M  USD LIBOR+  2.25%  0.00%  2.34% 11/1/2026  1,975,063   1,962,447   1,962,402 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 3/31/2028  2,493,750   2,470,693   2,478,164 
Callaway Golf Company Retail First Lien Loan  1M USD LIBOR+  4.50%  0.00%  4.59% 1/4/2026  684,375   675,279   687,085 
CareerBuilder, LLC Services: Business First Lien Loan  3M USD LIBOR+  6.75%  1.00%  7.75% 7/31/2023  5,393,388   5,222,788   4,456,287 
CareStream Health, Inc. Healthcare & Pharmaceuticals First Lien Loan  6M USD LIBOR+  6.75%  1.00%  7.75% 5/8/2023  2,210,996   2,208,405   2,214,224 
Casa Systems, Inc Telecommunications First Lien Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 12/20/2023  1,394,875   1,390,315   1,354,772 
Castle US Holding Corporation Media: Advertising, Printing & Publishing First Lien Loan  3M USD LIBOR+  3.75%  0.00%  3.88% 1/27/2027  1,984,316   1,972,500   1,957,349 
CBI BUYER, INC. Consumer goods: Durable First Lien Loan  3M USD LIBOR+  3.25%  0.50%  3.75% 1/6/2028  997,500   995,355   987,276 
CCC Intelligent Solutions Inc. Services: Business First Lien Loan  3M USD LIBOR+  2.50%  0.50%  3.00% 9/16/2028  250,000   249,395   248,595 
CCI Buyer, Inc Telecommunications First Lien Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 12/17/2027  248,750   246,540   247,942 
CCRR Parent, Inc. Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 3/5/2028  995,000   990,308   990,025 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  5.50%  0.00%  5.59% 9/25/2025  2,431,250   2,416,385   2,383,233 
Cengage Learning, Inc. Media: Advertising, Printing & Publishing First Lien Loan  6M USD LIBOR+  4.75%  1.00%  5.75% 7/14/2026  3,000,000   2,971,926   2,986,500 
CENTURI GROUP, INC. Construction & Building First Lien Loan  3M USD LIBOR+  2.50%  0.50%  3.00% 8/18/2028  1,000,000   990,247   992,810 
CenturyLink, Inc. Telecommunications First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.34% 3/15/2027  3,939,924   3,934,031   3,858,683 
Chemours Company, (The) Chemicals, Plastics, & Rubber First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.85% 4/3/2025  982,058   941,212   961,434 
Churchill Downs Incorporated Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.09% 3/17/2028  497,500   496,345   492,316 
CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 5/17/2028  997,500   988,136   995,006 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 2/2/2028  4,975,000   4,969,516   4,921,121 
Clarios Global LP Automotive First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.34% 4/30/2026  1,267,812   1,258,959   1,250,379 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  5.00%  1.00%  6.00% 8/9/2026  2,974,709   2,954,331   2,967,272 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD SOFR+  4.00%  0.00%  4.50% 8/9/2026  500,000   497,500   498,750 
CNT Holdings I Corp Retail First Lien Loan  6M USD LIBOR+  3.75%  0.75%  4.50% 11/8/2027  497,500   495,379   496,167 
Cole Haan Consumer goods: Non-durable First Lien Loan  3M USD LIBOR+  5.50%  0.00%  5.68% 2/7/2025  931,250   925,035   848,993 


Issuer Name Industry Asset
Name		 Asset
Type		 Reference Rate/Spread LIBOR Floor Current Rate
(All In)		 Maturity Date Principal/
Number of Shares		 Cost Fair Value
Columbus McKinnon Corporation Capital Equipment First Lien Loan  3M USD LIBOR+  2.75%  0.50%  3.25% 5/14/2028  493,194   492,000   491,039 
Compass Power Generation, LLC Utilities: Electric First Lien Loan  1M USD LIBOR+  3.50%  1.00%  4.50% 12/20/2024  1,764,488   1,761,912   1,750,884 
Conduent, Inc. Services: Business First Lien Loan  1M USD LIBOR+  4.25%  0.50%  4.75% 10/7/2028  1,000,000   990,106   996,880 
Connect Finco SARL Telecommunications First Lien Loan  1M USD LIBOR+  3.50%  1.00%  4.50% 12/11/2026  2,955,000   2,825,374   2,944,835 
Consolidated Communications, Inc. Telecommunications First Lien Loan  1M USD LIBOR+  3.50%  0.75%  4.25% 10/2/2027  714,005   704,828   710,135 
CORAL-US CO-BORROWER LLC Telecommunications First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.34% 1/31/2028  4,000,000   3,986,204   3,921,240 
CoreCivic, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  4.50%  1.00%  5.50% 12/18/2024  1,940,909   1,917,886   1,921,500 
Corelogic, Inc. Services: Business First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 6/2/2028  2,500,000   2,487,920   2,468,750 
Cortes NP Acquisition Corp (Vertiv) Capital Equipment First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.84% 3/2/2027  1,985,000   1,985,000   1,966,222 
COWEN INC. Banking, Finance, Insurance & Real Estate First Lien Loan  6M USD LIBOR+  3.25%  0.00%  4.00% 3/12/2028  2,977,500   2,963,634   2,955,169 
Cross Financial Corp Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 9/15/2027  498,750   498,185   498,959 
Crown Subsea Communications Holding, Inc. Construction & Building First Lien Loan  1M USD LIBOR+  5.00%  0.75%  5.75% 4/27/2027  2,404,110   2,381,714   2,412,115 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.34% 7/15/2025  1,939,087   1,923,959   1,899,394 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.34% 1/15/2026  486,250   485,547   475,917 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 4/15/2027  491,250   491,250   481,602 
CTS Midco, LLC High Tech Industries First Lien Loan  3M USD LIBOR+  6.00%  1.00%  7.00% 11/2/2027  1,985,000   1,932,807   1,980,038 
Daseke Inc Transportation: Cargo First Lien Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 3/5/2028  1,492,500   1,485,540   1,487,530 
DCert Buyer, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.09% 10/16/2026  1,488,665   1,488,665   1,482,249 
Dealer Tire, LLC Automotive First Lien Loan  1M USD LIBOR+  4.25%  0.00%  4.34% 12/12/2025  2,947,500   2,942,290   2,924,156 
Delek US Holdings, Inc. Utilities: Oil & Gas First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.34% 3/31/2025  6,331,691   6,287,413   6,138,575 
Delta 2 (Lux) S.a.r.l. Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  2.50%  1.00%  3.50% 2/1/2024  818,289   817,721   812,356 
DexKo Global, Inc. (Dragon Merger) Automotive First Lien Loan  3M USD LIBOR+  3.75%  0.50%  4.25% 9/23/2028  840,000   835,895   831,600 
DexKo Global, Inc. (Dragon Merger)(a) Automotive First Lien Loan  1M USD LIBOR+  3.75%  0.50%  4.25% 9/22/2028  -   -   (1,600)
Diamond Sports Group, LLC Media: Broadcasting & Subscription First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.35% 8/24/2026  3,417,688   2,951,243   1,428,594 
Digital Room LLC Media: Advertising, Printing & Publishing First Lien Loan  1M USD LIBOR+  5.00%  0.00%  5.09% 5/21/2026  2,932,500   2,910,197   2,916,019 
DIRECTV FINANCING, LLC Media: Broadcasting & Subscription First Lien Loan  3M USD LIBOR+  5.00%  0.75%  5.75% 7/22/2027  4,000,000   3,961,659   3,990,000 
Dispatch Acquisition Holdings, LLC Environmental Industries First Lien Loan  3M  USD LIBOR+  4.25%  0.75%  5.00% 3/25/2028  498,750   494,168   496,256 
DOMTAR CORPORATION Forest Products & Paper First Lien Loan  3M USD LIBOR+  5.50%  0.75%  6.25% 10/1/2028  677,419   670,645   668,105 
Driven Holdings LLC Retail First Lien Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 11/17/2028  2,000,000   1,989,999   1,985,000 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.75%  0.00%  3.84% 3/1/2028  6,500,000   6,452,985   6,483,750 
DTZ U.S. Borrower, LLC Construction & Building First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.84% 8/21/2025  3,885,874   3,874,529   3,852,572 
EAB Global, Inc. Services: Business First Lien Loan  3M USD LIBOR+  3.50%  0.50%  4.00% 8/16/2028  1,000,000   995,137   989,500 
Echo Global Logistics, Inc. Services: Business First Lien Loan  3M USD LIBOR+  3.75%  0.50%  4.25% 11/3/2028  2,000,000   1,995,009   1,987,500 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.50%  0.75%  4.25% 4/7/2028  2,216,320   2,208,164   2,204,042 
Electrical Components Inter., Inc. Capital Equipment First Lien Loan  2M USD LIBOR+  4.25%  0.00%  4.35% 6/26/2025  1,908,930   1,908,930   1,890,432 
ELECTRON BIDCO INC. Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  3.25%  0.50%  3.75% 11/1/2028  500,000   497,507   496,875 
ELO Touch Solutions, Inc. Media: Diversified & Production First Lien Loan  1M USD LIBOR+  6.50%  0.00%  6.59% 12/14/2025  2,341,935   2,261,794   2,340,952 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  5.00%  0.75%  5.75% 3/27/2028  2,353,022   2,343,936   2,284,502 
Endure Digital, Inc. High Tech Industries First Lien Loan  6M USD LIBOR+  3.50%  0.75%  4.25% 2/10/2028  2,493,750   2,482,382   2,443,875 


Issuer Name Industry Asset
Name		 Asset
Type		 Reference Rate/Spread LIBOR Floor Current Rate
(All In)		 Maturity Date Principal/
Number of Shares		 Cost Fair Value
Ensemble RCM LLC Services: Business First Lien Loan  3M  USD LIBOR+  3.75%  0.00%  3.88% 8/3/2026  2,977,215   2,970,750   2,965,515 
Enterprise Merger Sub Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  3.75%  0.00%  3.84% 10/10/2025  4,862,500   4,856,338   3,654,315 
Equiniti Group PLC Services: Business First Lien Loan  3M USD LIBOR+  4.50%  0.50%  5.00% 10/30/2028  1,000,000   990,000   1,000,630 
EyeCare Partners, LLC Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  3.75%  0.00%  3.88% 2/18/2027  1,972,929   1,972,489   1,946,788 
Finco I LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 6/27/2025  2,801,051   2,796,509   2,784,945 
First Brands Group, LLC Automotive First Lien Loan  3M USD LIBOR+  5.00%  1.00%  6.00% 3/30/2027  8,955,000   8,840,384   9,010,969 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD LIBOR+  2.50%  0.00%  2.63% 2/1/2027  5,214,262   5,197,429   5,128,070 
First Student Bidco Inc. Transportation: Consumer First Lien Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 7/14/2028  730,392   725,290   722,862 
First Student Bidco Inc. Transportation: Consumer First Lien Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 7/14/2028  269,608   267,725   266,828 
Fitness International, LLC (LA Fitness) Services: Consumer First Lien Loan  3M USD LIBOR+  3.25%  1.00%  4.25% 4/18/2025  1,330,058   1,325,167   1,230,969 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.09% 7/3/2024  496,154   495,700   490,389 
Franchise Group, Inc. Services: Consumer First Lien Loan  3M USD LIBOR+  4.75%  0.75%  5.50% 3/10/2026  815,445   808,244   812,730 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate First Lien Loan  1M  USD LIBOR+  2.25%  0.00%  2.38% 8/1/2025  4,364,988   4,344,680   4,310,425 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.34% 1/29/2027  1,975,000   1,971,377   1,929,496 
Garrett LX III S.a r.l. Automotive First Lien Loan  3M USD LIBOR+  3.25%  0.50%  3.75% 4/28/2028  1,500,000   1,493,036   1,477,500 
Gemini HDPE LLC Chemicals, Plastics, & Rubber First Lien Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 12/31/2027  2,417,797   2,400,444   2,402,686 
General Nutrition Centers, Inc. Retail Second Lien Loan  1M USD LIBOR+  6.00%  0.00%  6.20% 10/7/2026  362,697   362,697   338,668 
Genesee & Wyoming, Inc. Transportation: Cargo First Lien Loan  3M USD LIBOR+  2.00%  0.00%  2.13% 12/30/2026  1,477,500   1,472,116   1,463,094 
GEO Group, Inc., The Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.00%  0.75%  2.75% 3/22/2024  3,933,082   3,704,664   3,671,375 
GGP Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 8/27/2025  3,858,181   3,227,642   3,792,284 
GI Chill Acquisition LLC Services: Business First Lien Loan  3M USD LIBOR+  3.75%  0.00%  3.88% 8/1/2025  3,917,308   3,896,830   3,897,721 
Gigamon Inc. Services: Business First Lien Loan  6M USD LIBOR+  3.75%  0.75%  4.50% 12/27/2024  2,908,071   2,893,975   2,900,801 
Global Business Travel (GBT) III Inc. Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 8/13/2025  4,365,000   4,364,317   3,881,227 
Global Tel*Link Corporation Telecommunications First Lien Loan  1M USD LIBOR+  4.25%  0.00%  4.34% 11/29/2025  4,938,649   4,737,507   4,732,609 
Go Daddy Operating Company, LLC High Tech Industries First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.09% 8/10/2027  1,984,925   1,984,925   1,960,113 
Go Wireless Holdings, Inc. Telecommunications First Lien Loan  1M USD LIBOR+  6.50%  1.00%  7.50% 12/22/2024  2,891,234   2,865,921   2,888,343 
GOLDEN WEST PACKAGING GROUP LLC Forest Products & Paper First Lien Loan  3M USD LIBOR+  5.25%  0.75%  6.00% 11/23/2027  2,000,000   1,980,000   1,980,000 
Goodyear Tire & Rubber Company, The Chemicals, Plastics, & Rubber Second Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.09% 3/3/2025  3,000,000   2,945,334   2,943,750 
Graham Packaging Co Inc Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  3.00%  0.75%  3.75% 8/7/2027  974,763   968,707   966,506 
Great Outdoors Group, LLC Retail First Lien Loan  1M USD LIBOR+  3.75%  0.75%  4.50% 3/6/2028  992,500   987,793   991,259 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.34% 4/12/2024  2,948,846   2,931,243   2,941,474 
Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.50%  0.50%  3.00% 2/24/2028  3,880,491   3,876,926   3,848,982 
Harbor Freight Tools USA, Inc. Retail First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 10/19/2027  3,482,412   3,460,069   3,448,911 
Harland Clarke Holdings Corp. Media: Advertising, Printing & Publishing First Lien Loan  3M USD LIBOR+  7.75%  1.00%  8.75% 6/16/2026  1,262,555   1,260,166   1,156,362 


Issuer Name Industry Asset
Name		 Asset
Type		 Reference Rate/Spread LIBOR Floor Current Rate
(All In)		 Maturity Date Principal/
Number of Shares		 Cost Fair Value
Helix Gen Funding, LLc Energy: Electricity First Lien Loan  1M USD LIBOR+  3.75%  1.00%  4.75% 6/3/2024  228,806   228,663   221,560 
Hillman Group Inc. (The) (New) Consumer goods: Durable First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 7/14/2028  4,156,118   4,146,090   4,124,947 
Hillman Group Inc. (The) (New)(a) Consumer goods: Durable First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 7/14/2028  67,511   67,511   61,181 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 8/18/2025  3,560,000   3,550,679   3,533,300 
Holley Purchaser, Inc Automotive First Lien Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 11/10/2028  2,142,857   2,132,143   2,130,814 
Holley Purchaser, Inc(a) Automotive First Lien Loan  N/A  3.75%  0.75%  0.00% 11/10/2028  -   (1,786)  (2,007)
Howden Group Holdings Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.25%  0.75%  4.00% 11/12/2027  2,179,642   2,169,229   2,159,219 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.00%  0.00%  3.09% 3/17/2028  5,970,000   5,915,095   5,907,315 
Idera, Inc. High Tech Industries First Lien Loan  6M USD LIBOR+  3.75%  0.75%  4.50% 3/2/2028  4,872,321   4,860,282   4,846,741 
IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.75%  0.50%  4.25% 11/1/2028  2,000,000   1,990,101   1,983,340 
INDY US BIDCO, LLC Services: Business First Lien Loan  3M USD LIBOR+  3.75%  0.00%  3.88% 3/6/2028  2,243,750   2,243,594   2,235,336 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 1/29/2026  997,500   993,380   994,069 
INFINITE BIDCO LLC Wholesale First Lien Loan  1M USD LIBOR+  3.75%  0.50%  4.25% 3/2/2028  1,496,250   1,492,735   1,487,841 
Informatica Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.88% 10/13/2028  500,000   499,387   496,430 
Ingram Micro Inc. High Tech Industries First Lien Loan  3M USD LIBOR+  3.50%  0.50%  4.00% 6/30/2028  1,496,250   1,481,788   1,492,509 
Inmar Acquisition Sub, Inc. Services: Business First Lien Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 5/1/2024  3,394,994   3,347,450   3,380,259 
Innophos, Inc. Chemicals, Plastics, & Rubber First Lien Loan  1M USD LIBOR+  3.75%  0.00%  3.84% 2/4/2027  492,500   490,618   490,038 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable First Lien Loan  2M  USD LIBOR+  5.00%  0.75%  5.75% 4/7/2028  4,453,125   4,430,154   4,330,664 
INSTRUCTURE HOLDINGS, INC. High Tech Industries First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 10/21/2028  500,000   498,754   496,250 
Isagenix International, LLC Beverage, Food & Tobacco First Lien Loan  3M USD LIBOR+  5.75%  1.00%  6.75% 6/14/2025  2,476,309   2,447,851   1,842,374 
Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.59% 3/14/2025  2,949,539   2,929,959   2,871,376 
J Jill Group, Inc Retail First Lien Loan  3M USD LIBOR+  5.00%  1.00%  6.00% 5/8/2024  1,574,907   1,573,417   1,354,420 
Jane Street Group Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.84% 1/31/2028  3,970,000   3,964,061   3,919,383 
Journey Personal Care Corp. Consumer goods: Non-durable First Lien Loan  3M USD LIBOR+  4.25%  0.75%  5.00% 3/1/2028  997,500   992,818   990,847 
JP Intermediate B, LLC Consumer goods: Non-durable First Lien Loan  3M USD LIBOR+  5.50%  1.00%  6.50% 11/15/2025  4,221,483   4,190,800   3,904,872 
KAR Auction Services, Inc. Automotive First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.38% 9/19/2026  245,000   244,580   236,425 
Kindred Healthcare, Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  4.50%  0.00%  4.63% 7/2/2025  1,969,848   1,955,691   1,964,923 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass First Lien Loan  3M USD LIBOR+  4.75%  0.50%  5.25% 2/12/2026  1,492,500   1,485,674   1,441,203 
Kodiak BP, LLC Construction & Building First Lien Loan  3M  USD LIBOR+  3.25%  0.75%  4.00% 3/13/2028  497,500   495,179   493,560 
Kraton Corporation Chemicals, Plastics, & Rubber First Lien Loan  3M USD LIBOR+  3.25%  0.50%  3.75% 11/18/2028  1,000,000   995,000   991,250 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD LIBOR+  3.50%  0.19%  3.69% 9/1/2027  496,250   485,707   496,250 
Lakeland Tours, LLC Hotel, Gaming & Leisure First Lien Loan  3M USD LIBOR+  6.00%  1.25%  7.25% 9/25/2023  296,004   283,778   298,040 
Lakeland Tours, LLC Hotel, Gaming & Leisure First Lien Loan  3M USD LIBOR+  1.50%  1.25%  2.75% 9/25/2025  608,379   514,931   589,823 
Lakeland Tours, LLC Hotel, Gaming & Leisure First Lien Loan  3M USD LIBOR+  1.50%  1.25%  2.75% 9/25/2025  807,639   516,441   711,933 
Lakeland Tours, LLC Hotel, Gaming & Leisure First Lien Loan  Fixed  0.00%  0.00%  13.25% 9/27/2027  869,977   226,526   579,622 
Lealand Finance Company B.V. Energy: Oil & Gas First Lien Loan  1M USD LIBOR+  1.00%  0.00%  1.09% 6/30/2025  332,254   332,254   142,663 
Learfield Communications, Inc Media: Advertising, Printing & Publishing First Lien Loan  1M USD LIBOR+  3.25%  1.00%  4.25% 12/1/2023  476,250   475,501   447,346 
LIAISON ACQUISITION, LLC High Tech Industries First Lien Loan  6M USD LIBOR+  3.75%  0.75%  4.50% 3/4/2028  992,500   990,301   991,259 
Lifetime Brands, Inc Consumer goods: Non-durable First Lien Loan  1M USD LIBOR+  3.50%  1.00%  4.50% 2/28/2025  2,694,077   2,671,048   2,673,871 
Lightstone Generation LLC Energy: Electricity First Lien Loan  3M USD LIBOR+  3.75%  1.00%  4.75% 1/30/2024  1,322,520   1,321,483   1,141,335 
Lightstone Generation LLC Energy: Electricity First Lien Loan  3M USD LIBOR+  3.75%  1.00%  4.75% 1/30/2024  74,592   74,536   64,373 
Lindblad Expeditions, Inc. Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 3/21/2025  393,542   393,066   373,865 
Lindblad Expeditions, Inc. Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 3/21/2025  98,386   98,267   93,466 
Liquid Tech Solutions Holdings, LLC Services: Business First Lien Loan  3M USD LIBOR+  4.75%  0.00%  5.50% 3/17/2028  997,500   992,953   992,513 
LogMeIn, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  4.75%  0.00%  4.84% 8/31/2027  3,970,000   3,904,859   3,942,726 
LOYALTY VENTURES INC. Services: Business First Lien Loan  1M USD LIBOR+  4.50%  0.50%  5.00% 11/3/2027  1,000,000   980,000   990,830 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 11/11/2026  1,223,421   1,221,254   1,212,411 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber First Lien Loan  3M USD LIBOR+  3.75%  0.50%  4.25% 10/16/2028  250,000   248,773   248,393 
MA FinanceCo LLC High Tech Industries First Lien Loan  3M USD LIBOR+  4.25%  1.00%  5.25% 6/5/2025  2,427,968   2,421,037   2,453,267 
MAGNITE, INC. Services: Business First Lien Loan  6M USD LIBOR+  5.00%  0.75%  5.75% 4/28/2028  1,995,000   1,938,927   1,982,531 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 8/29/2025  1,317,074   1,317,074   1,286,781 
Match Group, Inc, The Services: Consumer First Lien Loan  3M USD LIBOR+  1.75%  0.00%  1.91% 2/15/2027  250,000   249,542   245,208 


Issuer Name Industry Asset
Name		 Asset
Type		 Reference Rate/Spread LIBOR Floor Current Rate
(All In)		 Maturity Date Principal/
Number of Shares		 Cost Fair Value
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  4.50%  0.00%  4.59% 2/28/2025  3,400,857   3,376,272   3,386,676 
McAfee, LLC Services: Business First Lien Loan  1M USD LIBOR+  3.75%  0.00%  3.84% 9/30/2024  1,647,800   1,643,176   1,645,625 
McGraw-Hill Education, Inc. Media: Advertising, Printing & Publishing First Lien Loan  1M USD LIBOR+  4.75%  0.50%  5.25% 7/20/2028  2,000,000   1,980,550   1,973,500 
MedAssets Software Inter Hldg, Inc. High Tech Industries First Lien Loan  3M USD LIBOR+  4.00%  0.50%  4.50% 11/17/2028  1,500,000   1,492,500   1,488,750 
Meredith Corporation Media: Advertising, Printing & Publishing First Lien Loan  Prime+  1.50%  0.00%  4.75% 1/31/2025  578,738   578,102   577,615 
Mermaid Bidco Inc. High Tech Industries First Lien Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 12/12/2027  996,253   992,915   988,781 
Messer Industries, LLC Chemicals, Plastics, & Rubber First Lien Loan  3M USD LIBOR+  2.50%  0.00%  2.63% 3/1/2026  3,391,515   3,375,615   3,348,273 
MH SUB I, LLC High Tech Industries First Lien Loan  1M USD LIBOR+  3.75%  1.00%  4.75% 9/13/2024  500,000   498,750   497,625 
Michaels Companies Inc Retail First Lien Loan  3M USD LIBOR+  4.25%  0.75%  5.00% 4/8/2028  1,496,250   1,482,283   1,484,654 
Milk Specialties Company Beverage, Food & Tobacco First Lien Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 8/23/2025  3,811,112   3,781,621   3,802,765 
MKS Instruments, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 2/2/2026  870,891   865,354   870,569 
MKS Instruments, Inc. High Tech Industries First Lien Loan  3M USD LIBOR+  2.25%  0.50%  2.75% 10/21/2028  1,000,000   997,500   995,630 
MLN US Holdco LLC Telecommunications First Lien Loan  1M USD LIBOR+  4.50%  0.00%  4.59% 12/1/2025  793,929   793,062   760,187 
MRC Global Inc. Metals & Mining First Lien Loan  1M USD LIBOR+  3.00%  0.00%  3.09% 9/20/2024  351,484   351,078   348,848 
MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment First Lien Loan  3M USD LIBOR+  3.75%  0.00%  3.88% 9/30/2024  2,842,097   2,810,092   2,780,509 
NAB Holdings, LLC (North American Bancard) Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD SOFR+  3.00%  0.00%  3.50% 11/17/2028  3,000,000   2,992,500   2,976,240 
Natgasoline LLC Chemicals, Plastics, & Rubber First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.63% 11/14/2025  1,476,072   1,450,744   1,461,311 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 3/2/2028  2,770,496   2,758,386   2,733,897 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 3/2/2028  87,464   87,061   86,308 
National Mentor Holdings, Inc.(a) Healthcare & Pharmaceuticals First Lien Loan  N/A  3.75%  0.75%  3.75% 3/2/2028  -   -   (1,703)
Neenah, Inc. Forest Products & Paper First Lien Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 4/6/2028  1,995,000   1,985,635   1,992,506 
NeuStar, Inc. Telecommunications First Lien Loan  Prime+  2.50%  1.00%  5.75% 8/8/2024  2,641,566   2,617,462   2,640,113 
NeuStar, Inc. Telecommunications First Lien Loan  Prime+  3.50%  1.00%  6.75% 8/8/2024  885,162   875,613   884,720 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 9/18/2026  1,113,795   1,102,709   1,105,241 
Next Level Apparel, Inc. Retail First Lien Loan  3M USD WIBOR+  5.50%  1.00%  6.50% 8/9/2024  1,737,840   1,728,558   1,659,638 
NM Z Parent Inc (Zep Inc) Chemicals, Plastics, & Rubber First Lien Loan  12M USD LIBOR+  4.00%  1.00%  5.00% 8/9/2024  877,273   875,285   863,236 
NorthPole Newco S.a.r.l Aerospace & Defense First Lien Loan  3M USD LIBOR+  7.00%  0.00%  7.13% 3/3/2025  5,094,178   4,751,773   2,547,089 
Novolex Holdings, Inc (Flex Acquisition) Containers, Packaging & Glass First Lien Loan  3M USD LIBOR+  3.50%  0.50%  4.00% 3/2/2028  995,000   990,478   986,453 
Nuvei Technologies Corp. High Tech Industries First Lien Loan  1M USD LIBOR+  2.50%  0.50%  3.00% 9/29/2025  2,244,375   2,239,430   2,230,348 
Organon & Co. Healthcare & Pharmaceuticals First Lien Loan  6M USD LIBOR+  3.00%  0.50%  3.50% 6/2/2028  2,493,750   2,481,971   2,484,398 
Pacific Gas and Electric Company Utilities: Electric First Lien Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 6/18/2025  1,483,725   1,477,419   1,464,718 
PACTIV EVERGREEN GROUP HOLDINGS INC. Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 9/20/2028  1,000,000   995,114   993,750 
Padagis LLC Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  4.75%  0.50%  5.25% 6/29/2028  941,176   932,100   938,824 
PAE Holding Corp Aerospace & Defense First Lien Loan  3M USD LIBOR+  4.50%  0.75%  5.25% 10/14/2027  1,985,000   1,959,195   1,982,519 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries First Lien Loan  3M USD LIBOR+  4.50%  0.50%  5.00% 1/7/2028  498,750   495,438   498,595 
Pathway Partners Vet Management Company LLC Services: Business First Lien Loan  1M USD LIBOR+  3.75%  0.00%  3.84% 3/30/2027  492,714   483,415   489,285 
PCI Gaming Authority Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 5/29/2026  855,192   852,192   847,068 
PECF USS INTERMEDIATE HOLDING III CORPORATION Environmental Industries First Lien Loan  3M  USD LIBOR+  4.25%  0.50%  4.75% 11/4/2028  100,000   99,750   99,563 
Penn National Gaming Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  2.25%  0.75%  3.00% 10/15/2025  1,767,751   1,716,963   1,759,584 
Peraton Corp. Aerospace & Defense First Lien Loan  1M USD LIBOR+  3.75%  0.75%  4.50% 2/1/2028  5,473,747   5,451,090   5,454,206 
Ping Identity Corporation High Tech Industries First Lien Loan  3M USD SOFR+  4.25%  0.00%  4.75% 11/18/2028  1,000,000   994,999   997,500 
Pitney Bowes Inc Services: Business First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.10% 3/17/2028  2,985,000   2,967,666   2,982,194 
Pixelle Specialty Solutions LLC Forest Products & Paper First Lien Loan  1M USD LIBOR+  6.50%  1.00%  7.50% 10/31/2024  3,535,026   3,514,650   3,513,569 
Plastipak Holdings Inc. Containers, Packaging & Glass First Lien Loan  Prime+  1.50%  0.00%  4.75% 10/14/2024  2,789,599   2,775,303   2,775,651 
Plastipak Holdings Inc. Containers, Packaging & Glass First Lien Loan  3M USD LIBOR+  2.50%  0.50%  3.00% 11/17/2028  2,000,000   1,989,999   1,990,000 
Playtika Holding Corp. High Tech Industries First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.84% 3/13/2028  4,477,500   4,468,175   4,442,978 
PointClickCare Technologies, Inc. High Tech Industries First Lien Loan  3M USD LIBOR+  3.00%  0.75%  3.75% 12/29/2027  497,500   495,318   495,013 
Polymer Process Holdings, Inc. Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  4.75%  0.75%  5.50% 2/12/2028  5,472,500   5,415,442   5,363,050 
PPD, Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  2.00%  0.50%  2.50% 1/13/2028  497,500   495,316   496,102 


Issuer Name Industry Asset
Name		 Asset
Type		 Reference Rate/Spread LIBOR Floor Current Rate
(All In)		 Maturity Date Principal/
Number of Shares		 Cost Fair Value
Pre-Paid Legal Services, Inc. Services: Consumer First Lien Loan  1M  USD LIBOR+  3.25%  0.00%  3.34% 5/1/2025  2,000,000   2,003,988   1,991,660 
Pre-Paid Legal Services, Inc. Services: Consumer First Lien Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 5/1/2025  990,000   978,558   987,525 
Presidio, Inc. Services: Business First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.60% 1/22/2027  493,750   492,891   491,281 
Prime Security Services Borrower, LLC (ADT) Services: Consumer First Lien Loan  6M USD LIBOR+  2.75%  0.75%  3.50% 9/23/2026  3,565,258   3,559,558   3,545,435 
PRIORITY HOLDINGS, LLC Services: Consumer First Lien Loan  1M USD LIBOR+  5.75%  1.00%  6.75% 4/27/2027  2,992,500   2,963,588   2,977,538 
PriSo Acquisition Corporation Construction & Building First Lien Loan  3M USD LIBOR+  3.25%  0.75%  4.00% 12/28/2027  497,499   495,905   492,678 
Project Leopard Holdings Inc High Tech Industries First Lien Loan  6M USD LIBOR+  4.75%  1.00%  5.75% 7/5/2024  496,250   495,328   496,518 
Prometric Inc. (Sarbacane Bidco) Services: Consumer First Lien Loan  1M USD LIBOR+  3.00%  1.00%  4.00% 1/29/2025  482,625   481,445   477,799 
PUG LLC Services: Consumer First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.59% 2/12/2027  486,313   484,423   476,990 
Rackspace Technology Global, Inc. High Tech Industries First Lien Loan  3M USD LIBOR+  2.75%  0.75%  3.50% 2/15/2028  497,500   495,296   489,983 
RealPage, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  3.25%  0.50%  3.75% 4/24/2028  1,000,000   997,688   989,750 
Renaissance Learning, Inc. Services: Consumer First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.34% 5/30/2025  2,976,833   2,952,101   2,939,623 
Rent-A-Center, Inc. Retail First Lien Loan  1M USD LIBOR+  3.25%  0.50%  3.75% 2/17/2028  996,247   994,051   984,621 
Research Now Group, Inc Media: Advertising, Printing & Publishing First Lien Loan  6M USD LIBOR+  5.50%  1.00%  6.50% 12/20/2024  4,354,689   4,272,433   4,284,840 
Resideo Funding Inc. Services: Consumer First Lien Loan  2M USD LIBOR+  2.25%  0.50%  2.75% 2/11/2028  1,492,500   1,489,838   1,488,769 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD LIBOR+  4.25%  1.00%  5.25% 4/30/2024  3,096,224   3,088,865   3,080,743 
Restoration Hardware, Inc. Retail First Lien Loan  1M USD LIBOR+  2.50%  0.50%  3.00% 10/13/2028  1,000,000   995,000   993,330 
Rexnord LLC Capital Equipment First Lien Loan  1M USD LIBOR+  2.25%  0.50%  2.75% 9/21/2028  250,000   249,387   249,220 
Reynolds Consumer Products LLC Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 1/29/2027  1,295,682   1,294,564   1,286,703 
Reynolds Group Holdings Inc. Metals & Mining First Lien Loan  1M  USD LIBOR+  3.25%  0.00%  3.34% 2/5/2026  3,473,750   3,456,954   3,436,616 
Robertshaw US Holding Corp. Consumer goods: Durable First Lien Loan  3M USD LIBOR+  3.50%  1.00%  4.50% 2/28/2025  965,000   963,772   912,533 
Rocket Software, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  4.25%  0.00%  4.34% 11/28/2025  2,912,658   2,904,525   2,884,056 
Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  6M USD LIBOR+  3.50%  1.00%  4.50% 6/2/2025  5,637,965   5,598,560   5,626,238 
RV Retailer LLC Automotive First Lien Loan  3M USD LIBOR+  4.00%  0.75%  4.75% 2/8/2028  1,990,000   1,972,198   1,978,816 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.00%  0.75%  3.75% 9/1/2027  495,000   488,798   492,733 
S&S HOLDINGS LLC Services: Business First Lien Loan  1M USD LIBOR+  5.00%  0.50%  5.50% 3/10/2028  2,490,000   2,431,160   2,480,663 
Sally Holdings LLC Retail First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.35% 7/5/2024  750,909   749,228   744,339 
Samsonite International S.A. Consumer goods: Non-durable First Lien Loan  1M USD LIBOR+  3.00%  0.75%  3.75% 4/25/2025  990,019   968,457   980,119 
Schweitzer-Mauduit International, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  3.75%  0.75%  4.50% 4/20/2028  2,992,500   2,976,144   2,960,091 
SETANTA AIRCRAFT LEASING DAC Aerospace & Defense First Lien Loan  3M USD LIBOR+  2.00%  0.00%  2.14% 11/2/2028  1,000,000   997,527   997,920 
Signify Health, LLC Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  3.25%  0.50%  3.75% 6/16/2028  500,000   497,608   496,565 
Sirius Computer Solutions, Inc. High Tech Industries First Lien Loan  Prime+  2.50%  0.00%  5.75% 7/1/2026  1,224,508   1,222,611   1,222,721 
Sitel Worldwide Corporation Services: Business First Lien Loan  1M USD LIBOR+  3.75%  0.50%  4.25% 8/28/2028  2,000,000   1,990,311   1,991,000 
SiteOne Landscape Supply, LLC Services: Business First Lien Loan  3M USD LIBOR+  2.00%  0.50%  2.50% 3/18/2028  995,000   992,670   990,025 
SMG US Midco 2, Inc. Services: Business First Lien Loan  3M USD LIBOR+  2.50%  0.00%  2.63% 1/23/2025  491,250   491,250   475,898 
Sotheby’s Services: Business First Lien Loan  3M USD  LIBOR+  4.50%  0.50%  5.00% 1/15/2027  3,264,654   3,212,837   3,261,944 
Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber First Lien Loan  3M USD LIBOR+  3.50%  0.75%  4.25% 8/2/2028  2,000,000   1,990,405   1,998,120 
Specialty Pharma III Inc. Services: Business First Lien Loan  1M USD LIBOR+  4.50%  0.75%  5.25% 3/31/2028  2,000,000   1,981,481   1,995,000 
Spectrum Brands, Inc. Consumer goods: Durable First Lien Loan  6M USD LIBOR+  2.00%  0.50%  2.50% 3/3/2028  497,500   496,351   495,013 
Spin Holdco, Inc. Services: Consumer First Lien Loan  3M USD LIBOR+  4.00%  0.75%  4.75% 3/4/2028  2,985,000   2,968,832   2,981,269 
SRAM, LLC Consumer goods: Durable First Lien Loan  3M USD LIBOR+  2.75%  0.50%  3.25% 5/12/2028  3,709,091   3,703,039   3,685,909 
SS&C Technologies, Inc. Services: Business First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 4/16/2025  190,170   189,926   187,348 
SS&C Technologies, Inc. Services: Business First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 4/16/2025  154,375   154,180   152,084 
SS&C Technologies, Inc. Services: Business First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 4/16/2025  477,615   476,951   471,158 
STANDARD INDUSTRIES INC. Construction & Building First Lien Loan  3M USD LIBOR+  2.50%  0.50%  3.00% 9/22/2028  1,000,000   990,162   996,610 
Staples, Inc. Wholesale First Lien Loan  3M USD LIBOR+  5.00%  0.00%  5.13% 4/16/2026  4,397,738   4,270,698   4,213,605 
Stars Group Inc. (The) Hotel, Gaming & Leisure First Lien Loan  3M USD LIBOR+  2.25%  0.00%  2.38% 7/21/2026  2,000,000   1,995,488   1,983,340 
Storable, Inc High Tech Industries First Lien Loan  6M USD LIBOR+  3.25%  0.50%  3.75% 4/17/2028  500,000   498,847   495,000 
Superannuation & Investments US LLC Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD LIBOR+  3.75%  0.50%  4.25% 11/1/2028  1,000,000   990,000   993,750 
Sylvamo Corporation Forest Products & Paper First Lien Loan  1M USD LIBOR+  4.50%  0.50%  5.00% 8/18/2028  1,146,667   1,135,433   1,145,233 
Syncsort Incorporated High Tech Industries First Lien Loan  3M USD LIBOR+  4.00%  0.75%  4.75% 4/24/2028  2,000,000   2,000,000   1,994,640 
Tenable Holdings, Inc. Services: Business First Lien Loan  6M USD LIBOR+  2.75%  0.50%  3.25% 6/30/2028  1,000,000   997,555   995,000 
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  5.25%  1.00%  6.25% 7/15/2025  4,439,848   4,361,672   4,424,308 


Issuer Name Industry Asset
Name		 Asset
Type		 Reference Rate/Spread LIBOR Floor Current Rate
(All In)		 Maturity Date Principal/
Number of Shares		 Cost Fair Value
Tenneco Inc Capital Equipment First Lien Loan  1M  USD LIBOR+  3.00%  0.00%  3.09% 10/1/2025  1,458,750   1,450,390   1,430,304 
Ten-X, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  4.00%  1.00%  5.00% 9/27/2024  1,925,000   1,923,469   1,889,638 
The Octave Music Group, Inc (Touchtunes) Services: Business First Lien Loan  1M USD LIBOR+  5.25%  1.00%  6.25% 5/29/2025  3,259,191   3,233,813   3,242,895 
Thor Industries, Inc. Automotive First Lien Loan  1M USD LIBOR+  3.00%  0.00%  3.13% 2/1/2026  2,935,080   2,882,657   2,932,145 
Tosca Services, LLC Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  3.50%  0.75%  4.25% 8/18/2027  496,250   490,069   495,942 
Trans Union LLC Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD LIBOR+  2.25%  0.50%  2.75% 11/16/2028  1,000,000   997,499   993,130 
Transdigm, Inc. Aerospace & Defense First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.34% 8/22/2024  4,034,433   4,037,080   3,965,767 
Travel Leaders Group, LLC Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.09% 1/25/2024  2,418,750   2,417,280   2,255,484 
TRC Companies, Inc. Services: Business First Lien Loan  1M USD LIBOR+  3.50%  1.00%  4.50% 6/21/2024  3,315,141   3,308,930   3,301,681 
TRC Companies, Inc. Services: Business First Lien Loan  1M USD LIBOR+  4.50%  0.75%  5.25% 6/21/2024  2,479,433   2,470,500   2,473,234 
TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco First Lien Loan  3M USD LIBOR+  3.50%  0.50%  4.00% 3/31/2028  1,496,250   1,489,275   1,488,215 
Tronox Pigments (Netherlands) B.V. Chemicals, Plastics, & Rubber First Lien Loan  3M USD LIBOR+  2.25%  0.00%  2.38% 3/10/2028  372,308   371,459   368,067 
TruGreen Limited Partnership Services: Consumer First Lien Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 10/29/2027  966,675   959,855   966,144 
Uber Technologies, Inc. Transportation: Consumer First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.59% 2/25/2027  3,958,360   3,918,261   3,941,854 
Ultra Clean Holdings, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  3.75%  0.00%  3.84% 8/27/2025  901,605   897,636   901,984 
Unimin Corporation Metals & Mining First Lien Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 7/31/2026  496,815   470,168   494,227 
United Natural Foods, Inc Beverage, Food & Tobacco First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.34% 10/22/2025  1,624,974   1,558,624   1,620,456 
United Road Services Inc. Transportation: Cargo First Lien Loan  6M  USD LIBOR+  5.75%  1.00%  6.75% 9/1/2024  928,759   922,607   844,938 
Univar Inc. Chemicals, Plastics, & Rubber First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.09% 5/26/2028  1,995,000   1,985,467   1,985,444 
Univision Communications Inc. Media: Broadcasting & Subscription First Lien Loan  1M USD LIBOR+  3.25%  0.75%  4.00% 3/15/2026  2,477,697   2,470,442   2,469,967 
US Ecology, Inc. Environmental Industries First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 11/2/2026  491,250   490,458   489,103 
Utz Quality Foods, LLC Beverage, Food & Tobacco First Lien Loan  1M USD LIBOR+  3.00%  0.00%  3.09% 1/20/2028  347,997   347,277   345,606 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD LIBOR+  4.00%  0.00%  4.18% 8/20/2025  1,385,891   1,380,309   1,351,243 
Vertex Aerospace Services Corp Aerospace & Defense First Lien Loan  3M USD LIBOR+  4.00%  0.75%  4.75% 11/10/2028  1,000,000   995,000   993,130 
VFH Parent LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.00%  0.00%  3.09% 3/1/2026  3,100,888   3,092,498   3,091,399 
Victory Capital Management Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD LIBOR+  2.25%  0.50%  2.75% 11/19/2028  1,000,000   995,000   992,500 
Virence Intermediate Holdings LLC (Athenahealth / VVC Holding) Healthcare & Pharmaceuticals��First Lien Loan  1M USD LIBOR+  4.25%  0.00%  4.34% 2/11/2026  2,950,175   2,924,974   2,942,800 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.34% 9/17/2028  3,000,000   2,990,185   2,983,740 
Vistra Energy Corp Utilities: Electric First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 12/31/2025  909,717   909,156   899,410 
Vizient, Inc Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.09% 5/6/2026  487,500   486,749   481,557 
VM Consolidated, Inc. Construction & Building First Lien Loan  3M USD LIBOR+  3.25%  0.00%  3.42% 3/19/2028  2,345,220   2,341,823   2,328,358 
Vouvray US Finance LLC High Tech Industries First Lien Loan  1M USD LIBOR+  3.00%  1.00%  4.00% 3/11/2024  477,500   477,500   411,992 
Walker & Dunlop, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD SOFR+  2.50%  0.50%  3.00% 10/14/2028  500,000   498,750   499,690 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  2.13%  0.00%  2.22% 1/20/2028  1,250,000   1,249,738   1,235,938 
Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries First Lien Loan  1M USD LIBOR+  3.75%  1.00%  4.75% 3/15/2025  491,094   489,576   483,114 


Issuer Name Industry Asset
Name		 Asset
Type		 Reference Rate/Spread LIBOR Floor Current Rate
(All In)		 Maturity Date Principal/
Number of Shares		 Cost Fair Value
Watlow Electric Manufacturing Company High Tech Industries First  Lien Loan  3M USD LIBOR+  4.00%  0.50%  4.50% 3/2/2028  2,487,500   2,475,939   2,471,182 
WeddingWire, Inc. Services: Consumer First Lien Loan  2M USD LIBOR+  4.50%  0.00%  4.60% 12/19/2025  4,882,347   4,875,158   4,878,295 
West Corporation Telecommunications First Lien Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 10/10/2024  1,086,078   1,044,086   1,033,012 
West Corporation Telecommunications First Lien Loan  3M USD LIBOR+  3.50%  1.00%  4.50% 10/10/2024  2,599,274   2,558,751   2,448,204 
WEX Inc. Services: Business First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.34% 3/31/2028  1,990,000   1,980,808   1,971,652 
WildBrain Ltd. Media: Diversified & Production First Lien Loan  1M USD LIBOR+  4.25%  0.75%  5.00% 3/27/2028  1,990,000   1,953,320   1,988,348 
Wirepath LLC Consumer goods: Non-durable First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.09% 8/5/2024  2,902,749   2,888,420   2,893,083 
WP CITYMD BIDCO LLC Services: Consumer First Lien Loan  6M USD LIBOR+  3.75%  0.75%  4.50% 8/13/2026  5,424,013   5,400,097   5,394,614 
WP CITYMD BIDCO LLC Services: Consumer First Lien Loan  3M USD LIBOR+  3.25%  0.50%  3.75% 8/13/2028  2,000,000   1,997,499   1,989,160 
Xperi Corporation High Tech Industries First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.59% 6/8/2028  2,776,766   2,763,896   2,762,188 
ZEBRA BUYER LLC Banking, Finance, Insurance & Real Estate First Lien Loan  2M USD LIBOR+  3.25%  0.50%  3.75% 11/1/2028  887,097   882,754   884,329 
Zekelman Industries, Inc. Metals & Mining First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.09% 1/25/2027  970,775   970,775   960,057 
                            $675,359,709  $666,709,161 

  Number of Shares  Cost  Fair Value 
Cash and cash equivalents         
U.S. Bank Money Market (c)  8,059,084  $8,059,084  $8,059,084 
Total cash and cash equivalents  8,059,084  $8,059,084  $8,059,084 

 

Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value 
Covia Holdings C/S (Unimin) Metals & Mining Common Stock Equity -  -   -   -   -   49,312   385,327  $369,840 
Fusion Connect Warrant Telecommunications Warrants Equity -  -   -   -   -   32,832   -   - 
J Jill Common Stock Retail Common Stock Equity -  -   -   -   -   5,085   -   97,374 
ABB Con-Cise Optical Group LLC Consumer goods: Non-durable Term Loan B Loan  6M USD LIBOR+  5.00%  1.00%  6.00%  6/15/2023  $2,055,028  $2,042,826   1,972,827 
Adtalem Global Education Inc. Services: Business Term Loan B (02/21) Loan  1M USD LIBOR+  4.50%  0.75%  5.25%  2/12/2028   2,000,000   1,980,000   1,984,580 
Aegis Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  5.50%  1.00%  6.50%  5/9/2025   3,386,421   3,367,055   3,265,797 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (1/19) Loan  1M USD LIBOR+  2.75%  0.00%  2.88%  1/4/2026   490,000   490,000   488,775 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (09/20) Loan  1M USD LIBOR+  2.75%  0.75%  3.50%  1/4/2026   384,464   381,065   383,503 
AHEAD DB Holdings, LLC Services: Business Term Loan (04/21) Loan  3M USD LIBOR+  3.75%  0.75%  4.50%  10/18/2027   3,000,000   2,888,935   2,995,770 
AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense Term Loan B (USD) Loan  3M USD LIBOR+  3.50%  1.00%  4.50%  1/18/2027   1,485,000   1,479,037   1,484,376 
AIS HoldCo, LLC Services: Business Term Loan Loan  3M USD LIBOR+  5.00%  0.00%  5.19%  8/15/2025   5,212,127   5,058,226   5,107,885 
Alchemy Copyrights, LLC Media: Diversified & Production Term Loan B Loan  1M USD LIBOR+  3.00%  0.50%  3.50%  3/10/2028   497,503   494,212   496,259 
Alchemy US Holdco 1, LLC Metals & Mining Term Loan Loan  1M USD LIBOR+  5.50%  0.00%  5.59%  10/10/2025   1,887,500   1,868,406   1,850,939 
Alion Science and Technology Corporation Aerospace & Defense Term Loan (2/21) Loan  1M USD LIBOR+  2.75%  0.75%  3.50%  7/23/2024   3,990,000   3,975,478   3,974,040 
AlixPartners, LLP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.25%  2/4/2028   250,000   249,391   248,958 
Alkermes, Inc. Healthcare & Pharmaceuticals Term Loan B (3/21) Loan  3M USD LIBOR+  2.50%  0.50%  3.00%  3/12/2026   500,000   498,791   496,250 
Allen Media, LLC Media: Diversified & Production Term Loan Loan  3M USD LIBOR+  5.50%  0.00%  5.70%  2/10/2027   2,969,527   2,957,931   2,962,103 
Alliant Holdings I, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan  1M USD LIBOR+  3.75%  0.50%  4.25%  11/6/2027   500,000   497,500   500,375 
Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate Term Loan B (03/18) Loan  3M USD LIBOR+  4.00%  1.00%  5.00%  4/3/2024   1,223,297   1,219,007   1,026,554 
Altium Packaging LLC Containers, Packaging & Glass Term Loan (01/21) Loan  1M USD LIBOR+  2.75%  0.50%  2.84%  1/29/2028   500,000   497,552   496,485 
Altra Industrial Motion Corp. Capital Equipment Term Loan Loan  1M USD LIBOR+  2.00%  0.00%  2.09%  10/1/2025   1,477,611   1,475,296   1,470,223 
American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan Loan  1M USD LIBOR+  4.50%  1.00%  5.50%  4/6/2024   3,878,028   3,876,039   3,878,028 
American Trailer World Corp Automotive Term Loan Loan  1M USD LIBOR+  3.75%  0.75%  4.50%  3/3/2028   2,000,000   1,990,352   1,996,260 
AmeriLife Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  4.00%  0.00%  4.11%  3/18/2027   1,488,901   1,480,666   1,487,040 
AmWINS Group, LLC Banking, Finance, Insurance & Real Estate Term Loan 2/21 Loan  1M USD LIBOR+  2.25%  0.75%  3.00%  2/17/2028   1,995,000   1,990,338   1,984,826 
Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan  3M USD LIBOR+  3.75%  0.00%  3.95%  8/11/2025   975,000   971,940   698,519 
Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan  3M USD LIBOR+  2.75%  1.00%  3.75%  12/7/2023   478,844   477,830   431,333 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value  Issuer Name 
Anchor Packaging, LLC Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+  4.00%  0.00%  4.11%  7/18/2026   994,937   985,812   996,180 
ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals ANI Pharmaceuticals 5/21 T/L B Loan 3M USD LIBOR+  6.00%  0.75%  6.75%  5/24/2027   3,000,000   2,940,000   2,947,500 
APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan 1M USD LIBOR+  2.50%  0.00%  2.59%  10/1/2026   987,500   983,568   980,094 
APLP Holdings Limited Partnership Energy: Electricity Term Loan B (3/21) Loan 3M USD LIBOR+  3.75%  1.00%  4.75%  4/1/2027   1,000,000   990,055   1,000,630 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.75%  0.00%  2.84%  5/15/2026   2,992,386   2,954,312   2,962,462 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 (2/21) Loan 1M USD LIBOR+  3.50%  0.50%  4.00%  3/6/2028   1,000,000   990,216   997,500 
AppLovin Corporation High Tech Industries Term Loan B Loan 1M USD LIBOR+  3.25%  0.00%  3.34%  8/15/2025   997,449   997,449   995,893 
Aramark Corporation Services: Consumer Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  1.84%  1/15/2027   2,475,000   2,398,873   2,438,915 
Aramark Corporation Services: Consumer Term Loan B (4/21) Loan 1M USD LIBOR+  2.50%  0.00%  2.59%  4/1/2028   2,000,000   1,990,169   1,989,580 
Arctic Glacier U.S.A., Inc. Beverage, Food & Tobacco Term Loan (3/18) Loan 3M USD LIBOR+  3.50%  1.00%  4.50%  3/20/2024   3,350,967   3,338,111   3,200,174 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan 1M USD LIBOR+  4.25%  0.00%  4.34%  10/1/2025   2,455,000   2,447,156   2,444,763 
ARISTOCRAT LEISURE LIMITED Hotel, Gaming & Leisure Term Loan (5/20) Loan 1M USD LIBOR+  3.75%  1.00%  4.75%  10/19/2024   992,500   976,985   993,741 
ASP MSG Acquisition Co., Inc Beverage, Food & Tobacco Term Loan (2/17) Loan 1M USD LIBOR+  4.00%  1.00%  5.00%  8/16/2023   3,820,663   3,787,713   3,820,663 
Aspen Dental Management, Inc. Services: Consumer Term Loan B Loan 1M USD LIBOR+  2.75%  0.00%  2.84%  4/30/2025   1,945,276   1,939,344   1,922,069 
Asplundh Tree Expert, LLC Services: Business Term Loan 2/21 Loan 1M USD LIBOR+  1.75%  0.00%  1.84%  9/7/2027   995,000   990,535   992,353 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B6 Loan 1M USD LIBOR+  3.00%  0.00%  3.09%  11/3/2023   328,929   327,614   328,037 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan 1M USD LIBOR+  3.25%  0.00%  3.34%  12/18/2026   3,017,802   3,005,209   3,001,777 
Avast Software S.R.O. (Sybil Finance) High Tech Industries Term Loan (Sybil Software) Loan 3M USD LIBOR+  2.00%  0.00%  2.20%  3/12/2028   2,000,000   1,995,063   1,993,920 
Avaya, Inc. Telecommunications Term Loan B1 Loan 1M USD LIBOR+  4.25%  0.00%  4.35%  12/15/2027   1,755,766   1,746,470   1,760,156 
Avaya, Inc. Telecommunications Term Loan B-2 (2/21) Loan 1M USD LIBOR+  4.00%  0.00%  4.10%  12/15/2027   1,000,000   1,000,000   1,001,880 
Avison Young (Canada) Inc Services: Business Term Loan Loan 3M USD LIBOR+  6.00%  0.00%  6.19%  1/31/2026   3,432,330   3,386,981   3,380,845 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3 Loan 1M USD LIBOR+  1.75%  0.75%  2.50%  1/15/2025   1,000,000   877,024   996,350 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 Loan 1M USD LIBOR+  2.50%  0.75%  3.25%  12/1/2027   498,750   494,114   499,234 
Azalea TopCo, Inc. Services: Business Incremental Term Loan (4/21) Loan 1M USD LIBOR+  3.75%  0.75%  4.50%  7/24/2026   998,750   991,814   998,331 
B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  2.59%  10/10/2026   706,458   701,043   705,724 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan 1M USD LIBOR+  1.75%  0.00%  1.84%  11/19/2026   1,481,250   1,445,382   1,457,639 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  4.00%  0.75%  4.75%  10/14/2027   995,000   981,284   996,244 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 3M USD LIBOR+  3.50%  0.50%  4.00%  10/14/2027   250,000   249,375   250,313 
BALL METALPACK, LLC (PE Spray) Containers, Packaging & Glass Term Loan Loan 3M USD LIBOR+  4.50%  0.00%  4.64%  7/25/2025   3,894,875   3,882,778   3,881,905 
Bass Pro Group, LLC Retail Term Loan B (02/21) Loan 6M USD LIBOR+  4.25%  0.75%  5.00%  3/6/2028   997,500   992,617   1,004,233 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value  Issuer Name 
Belfor Holdings Inc. Services: Consumer Term Loan Loan  1M USD LIBOR+  4.00%  0.00%  4.09%  4/6/2026   250,000   249,697   250,625 
Belron Finance US LLC Automotive Term Loan B (3/21) Loan  3M USD LIBOR+  2.75%  0.50%  3.25%  4/13/2028   2,000,000   1,980,293   1,993,760 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  2.34%  4/23/2026   997,468   990,420   987,494 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B-2 Loan  1M USD LIBOR+  4.75%  1.00%  5.75%  4/23/2026   1,491,237   1,480,658   1,491,237 
Blount International, Inc. Forest Products & Paper Term Loan B (09/18) Loan  1M USD LIBOR+  3.75%  1.00%  4.75%  4/12/2023   3,410,063   3,408,500   3,415,757 
Blucora, Inc. Services: Consumer Term Loan (11/17) Loan  3M USD LIBOR+  4.00%  1.00%  5.00%  5/22/2024   2,449,255   2,442,432   2,455,378 
Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber Term Loan (2/21) Loan  3M USD LIBOR+  2.50%  0.00%  2.65%  3/4/2028   1,000,000   997,582   992,500 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan  1M USD LIBOR+  2.00%  0.00%  2.09%  5/24/2027   1,481,300   1,470,721   1,463,613 
Boxer Parent Company, Inc. High Tech Industries Term Loan (2/21) Loan  1M USD LIBOR+  3.75%  0.00%  3.84%  10/2/2025   527,385   527,385   524,442 
Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  4.25%  0.00%  4.44%  9/5/2025   975,000   971,950   972,563 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Term Loan B-3 Loan  1M USD LIBOR+  3.50%  0.00%  3.60%  3/5/2026   1,000,000   1,000,000   992,500 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan  1M USD LIBOR+  3.25%  0.00%  3.34%  1/22/2027   3,001,849   2,995,634   2,972,251 
Brookfield WEC Holdings Inc. Energy: Electricity Term Loan (1/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.25%  8/1/2025   1,488,731   1,491,426   1,478,504 
Buckeye Partners, L.P. Utilities: Oil & Gas Term Loan (1/21) Loan  1M USD LIBOR+  2.25%  0.00%  2.36%  11/1/2026   1,985,012   1,971,201   1,973,321 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+  3.50%  0.00%  4.00%  3/31/2028   2,500,000   2,475,522   2,503,125 
Cable & Wireless Communications Limited Telecommunications Term Loan B-5 Loan  1M USD LIBOR+  2.25%  0.00%  2.34%  1/31/2028   4,000,000   3,985,297   3,941,440 
Callaway Golf Company Retail Term Loan B Loan  1M USD LIBOR+  4.50%  0.00%  4.59%  1/4/2026   688,125   678,077   691,394 
Cardtronics Inc Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  4.00%  1.00%  5.00%  6/29/2027   1,491,237   1,485,752   1,490,119 
CareerBuilder, LLC Services: Business Term Loan Loan  3M USD LIBOR+  6.75%  1.00%  7.75%  7/31/2023   5,393,388   5,178,845   5,140,600 
CareStream Health, Inc. Healthcare & Pharmaceuticals Term Loan Loan  6M USD LIBOR+  6.75%  1.00%  7.75%  5/8/2023   2,266,801   2,263,321   2,265,849 
Casa Systems, Inc Telecommunications Term Loan Loan  3M USD LIBOR+  4.00%  1.00%  5.00%  12/20/2023   1,402,375   1,396,875   1,391,857 
Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan  3M USD LIBOR+  3.75%  0.00%  3.95%  1/27/2027   1,992,689   1,979,966   1,958,135 
CBI BUYER, INC. Consumer goods: Durable Term Loan Loan  1M USD LIBOR+  3.25%  0.50%  3.75%  1/6/2028   1,000,000   997,820   997,500 
CCI Buyer, Inc Telecommunications Term Loan Loan  3M USD LIBOR+  4.00%  0.75%  4.75%  12/17/2027   250,000   247,660   250,313 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  3M USD LIBOR+  4.25%  0.75%  5.00%  3/5/2028   1,000,000   995,059   1,003,750 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+  5.50%  0.00%  5.59%  9/25/2025   2,443,750   2,427,421   2,405,872 
Cengage Learning Acquisitions, Inc. Media: Advertising, Printing & Publishing Term Loan Loan  6M USD LIBOR+  4.25%  1.00%  5.25%  6/7/2023   3,922,164   3,896,977   3,917,811 
CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan  1M USD LIBOR+  2.25%  0.00%  2.34%  3/15/2027   3,959,975   3,953,704   3,921,880 
Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  1.84%  4/3/2025   987,277   940,471   972,468 
Churchill Downs Incorporated Hotel, Gaming & Leisure Term Loan B1 (3/21) Loan  1M USD LIBOR+  2.00%  0.00%  2.10%  3/17/2028   500,000   498,779   495,625 
CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing USD Term Loan Loan  1M USD LIBOR+  3.50%  0.50%  4.00%  4/30/2028   1,000,000   990,029   998,130 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value  Issuer Name 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan  1M USD LIBOR+  2.50%  0.00%  2.59%  2/2/2028   5,000,000   4,993,963   4,963,400 
Clarios Global LP Automotive Term Loan B1 Loan  1M USD LIBOR+  3.25%  0.00%  3.34%  4/30/2026   1,432,521   1,421,559   1,424,915 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  5.00%  1.00%  6.00%  8/9/2026   2,989,886   2,968,157   2,997,361 
CNT Holdings I Corp Retail Term Loan Loan  6M USD LIBOR+  3.75%  0.75%  4.50%  11/8/2027   500,000   497,761   500,625 
Cole Haan Consumer goods: Non-durable Term Loan B Loan  3M USD LIBOR+  5.50%  0.00%  5.64%  2/7/2025   943,750   936,747   898,922 
Columbus McKinnon Corporation Capital Equipment Term Loan (4/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.25%  4/7/2028   500,000   498,750   500,625 
Compass Power Generation, LLC Utilities: Electric Term Loan B (08/18) Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  12/20/2024   1,796,999   1,794,130   1,787,260 
Concordia Healthcare Corp. Healthcare & Pharmaceuticals Term Loan Loan  1W USD LIBOR+  5.50%  1.00%  6.50%  9/6/2024   1,153,300   1,114,883   1,146,092 
Connect Finco SARL Telecommunications Term Loan (1/21) Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  12/11/2026   2,970,000   2,829,372   2,971,485 
Consolidated Communications, Inc. Telecommunications Term Loan B Loan  1M USD LIBOR+  3.50%  0.75%  4.25%  10/2/2027   714,005   704,187   714,133 
CoreCivic, Inc. Banking, Finance, Insurance & Real Estate Term Loan (12/19) Loan  1M USD LIBOR+  4.50%  1.00%  5.50%  12/18/2024   3,386,364   3,340,744   3,259,375 
Corelogic, Inc. Services: Business Term Loan (4/21) Loan  3M USD LIBOR+  3.50%  0.50%  4.00%  4/14/2028   2,500,000   2,487,500   2,487,500 
Cortes NP Acquisition Corp (Vertiv) Capital Equipment Term Loan 2/21 Loan  1M USD LIBOR+  2.75%  0.00%  2.86%  3/2/2027   1,995,000   1,995,000   1,986,282 
COWEN INC. Banking, Finance, Insurance & Real Estate Term Loan Loan  6M USD LIBOR+  3.25%  0.00%  4.00%  3/12/2028   2,992,500   2,977,753   2,977,538 
Cross Financial Corp Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  9/15/2027   500,000   499,401   500,000 
Crown Subsea Communications Holding, Inc. Construction & Building Term Loan (4/21) Loan  1M USD LIBOR+  5.00%  0.75%  5.75%  4/27/2027   2,876,712   2,848,428   2,881,516 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B (03/17) Loan  1M USD LIBOR+  2.25%  0.00%  2.35%  7/15/2025   1,949,239   1,932,192   1,925,361 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  2.35%  1/15/2026   488,750   487,986   483,007 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan  1M USD LIBOR+  2.50%  0.00%  2.60%  4/15/2027   493,750   493,750   490,417 
CTS Midco, LLC High Tech Industries Term Loan B Loan  3M USD LIBOR+  6.00%  1.00%  7.00%  11/2/2027   1,995,000   1,939,439   1,995,000 
Daseke Inc Transportation: Cargo Term Loan 2/21 Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  3/5/2028   1,500,000   1,492,658   1,497,495 
DCert Buyer, Inc. High Tech Industries Term Loan Loan  1M USD LIBOR+  4.00%  0.00%  4.09%  10/16/2026   1,496,222   1,496,222   1,496,222 
Dealer Tire, LLC Automotive Term Loan B-1 Loan  1M USD LIBOR+  4.25%  0.00%  4.34%  12/12/2025   2,962,500   2,956,828   2,958,797 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  2.34%  3/31/2025   6,364,352   6,313,748   6,192,514 
Dell International LLC High Tech Industries Term Loan B-2 Loan  1M USD LIBOR+  1.75%  0.25%  2.00%  9/19/2025   2,524,048   2,522,032   2,523,594 
Delta 2 (Lux) S.a.r.l. Hotel, Gaming & Leisure Term Loan B Loan  1M USD LIBOR+  2.50%  1.00%  3.50%  2/1/2024   818,289   817,607   812,536 
Diamond Sports Group, LLC Media: Broadcasting & Subscription Term Loan Loan  1M USD LIBOR+  3.25%  0.00%  3.35%  8/24/2026   3,435,126   2,925,919   2,459,344 
Digital Room LLC Media: Advertising, Printing & Publishing Term Loan Loan  6M USD LIBOR+  5.00%  0.00%  5.20%  5/21/2026   2,947,500   2,920,541   2,890,024 
Dispatch Acquisition Holdings, LLC Environmental Industries Term Loan B Loan  3M USD LIBOR+  4.25%  0.75%  5.00%  3/25/2028   500,000   495,153   498,750 
Dole Food Company Inc. Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+  2.75%  1.00%  3.75%  4/6/2024   451,599   450,672   451,098 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan (2/21) Loan  1M USD LIBOR+  3.75%  0.00%  3.84%  2/24/2028   6,500,000   6,450,231   6,467,500 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value  Issuer Name 
DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan  1M USD LIBOR+  2.75%  0.00%  2.84%  8/21/2025   3,905,600   3,893,098   3,857,483 
EagleTree - Carbride Acquisition (Corsair Components) Consumer goods: Durable Term Loan Loan  1M USD LIBOR+  3.75%  1.00%  4.75%  8/28/2024   2,622,418   2,622,540   2,625,696 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  1M USD LIBOR+  3.75%  0.75%  4.50%  4/7/2028   2,221,875   2,213,226   2,223,275 
Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan  2M USD LIBOR+  4.25%  0.00%  4.37%  6/26/2025   1,918,921   1,918,167   1,884,534 
ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan  1M USD LIBOR+  6.50%  0.00%  6.59%  12/14/2025   2,466,935   2,374,020   2,466,935 
Encapsys, LLC (Cypress Performance Group) Chemicals, Plastics, & Rubber Term Loan B2 Loan  1M USD LIBOR+  3.25%  1.00%  4.25%  11/7/2024   490,998   487,627   490,384 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan (3/21) Loan  1M USD LIBOR+  5.00%  0.75%  5.75%  3/27/2028   2,364,846   2,355,240   2,306,056 
Endure Digital, Inc. High Tech Industries Term Loan B Loan  6M USD LIBOR+  3.50%  0.75%  4.25%  2/10/2028   2,500,000   2,488,102   2,481,775 
Ensemble RCM LLC Services: Business Term Loan Loan  3M USD LIBOR+  3.75%  0.00%  3.94%  8/3/2026   2,992,405   2,985,523   2,995,397 
Enterprise Merger Sub Inc. Healthcare & Pharmaceuticals Term Loan B (06/18) Loan  1M USD LIBOR+  3.75%  0.00%  3.84%  10/10/2025   4,887,500   4,880,760   4,162,000 
EVERI Payments Inc. Hotel, Gaming & Leisure Term Loan B Loan  1M USD LIBOR+  2.75%  0.75%  3.50%  5/9/2024   3,000,000   3,000,000   2,983,140 
EyeCare Partners, LLC Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+  3.75%  0.00%  3.84%  2/18/2027   1,982,868   1,981,856   1,963,535 
Finco I LLC Banking, Finance, Insurance & Real Estate Term Loan B (9/20) Loan  1M USD LIBOR+  2.50%  0.00%  2.59%  6/27/2025   2,815,198   2,810,264   2,808,751 
First Brands Group, LLC Automotive 1st Lien Term Loan (3/21) Loan  3M USD LIBOR+  5.00%  1.00%  6.00%  3/30/2027   9,000,000   8,879,410   9,039,420 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan  3M USD LIBOR+  2.50%  0.00%  2.70%  2/1/2027   5,241,509   5,223,448   5,184,167 
Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan  1M USD LIBOR+  3.25%  1.00%  4.25%  4/18/2025   1,330,058   1,324,600   1,259,951 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Term Loan (1/20) Loan  1M USD LIBOR+  2.00%  0.00%  2.09%  7/3/2024   498,718   498,194   493,626 
Franchise Group, Inc. Services: Consumer First Out Term Loan Loan  3M USD LIBOR+  4.75%  0.75%  5.50%  3/10/2026   1,000,000   990,447   1,000,000 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  2.25%  0.00%  2.38%  8/1/2025   4,387,491   4,364,611   4,343,616 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan  1M USD LIBOR+  2.25%  0.00%  2.34%  1/29/2027   1,985,000   1,981,071   1,956,972 
Fusion Telecommunications International Inc. Telecommunications Take Back 2nd Out Term Loan Loan  6M USD LIBOR+  1.00%  2.00%  3.00%  7/14/2025   827,334   811,091   442,624 
Garrett LX III S.a r.l. Automotive Dollar Term Loan Loan  3M USD LIBOR+  3.25%  0.50%  3.75%  4/28/2028   1,500,000   1,492,558   1,494,375 
Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan  3M USD LIBOR+  3.00%  0.50%  3.50%  12/31/2027   2,467,432   2,448,531   2,463,311 
General Nutrition Centers, Inc. Retail Second Lien Term Loan Loan  3M USD LIBOR+  6.00%  0.00%  6.20%  10/7/2026   362,697   362,697   327,033 
Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan  3M USD LIBOR+  2.00%  0.00%  2.20%  12/30/2026   1,485,000   1,479,107   1,478,080 
GEO Group, Inc., The Banking, Finance, Insurance & Real Estate Term Loan Refinance Loan  1M USD LIBOR+  2.00%  0.75%  2.75%  3/22/2024   3,953,674   3,679,283   3,339,946 
GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  2.50%  0.00%  2.59%  8/27/2025   3,959,389   3,232,212   3,820,811 
GI Chill Acquisition LLC Services: Business Term Loan Loan  3M USD LIBOR+  4.00%  0.00%  4.20%  8/1/2025   3,937,500   3,915,210   3,907,969 
Gigamon Inc. Services: Business Term Loan B Loan  3M USD LIBOR+  3.75%  0.75%  4.50%  12/27/2024   2,923,000   2,906,780   2,915,693 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value  Issuer Name 
Global Business Travel (GBT) III Inc. Hotel, Gaming & Leisure Term Loan Loan  1M USD LIBOR+  2.50%  0.00%  2.59%  8/13/2025   4,387,500   4,386,754   4,213,843 
Global Tel*Link Corporation Telecommunications Term Loan B Loan  1M USD LIBOR+  4.25%  0.00%  4.34%  11/29/2025   4,938,649   4,716,522   4,517,481 
Go Daddy Operating Company, LLC High Tech Industries Term Loan 2/21 Loan  1M USD LIBOR+  2.00%  0.00%  2.09%  8/10/2027   1,994,975   1,994,975   1,985,319 
Go Wireless Holdings, Inc. Telecommunications Term Loan Loan  1M USD LIBOR+  6.50%  1.00%  7.50%  12/22/2024   2,980,195   2,950,622   2,970,271 
Goodyear Tire & Rubber Company, The Chemicals, Plastics, & Rubber Second Lien Term Loan Loan  1M USD LIBOR+  2.00%  -   2.12%  3/3/2025   3,000,000   2,937,621   2,949,990 
Graham Packaging Co Inc Containers, Packaging & Glass Term Loan (2/21) Loan  1M USD LIBOR+  3.00%  0.75%  3.75%  8/7/2027   979,661   973,157   978,995 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  3.25%  0.00%  3.34%  4/12/2024   3,210,385   3,187,540   3,202,359 
Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Amendment 5 Term Loan Loan  1M USD LIBOR+  2.50%  0.50%  3.00%  2/24/2028   3,899,991   3,894,681   3,886,575 
Guidehouse LLP (fka PricewaterhouseCoopers) Aerospace & Defense Term Loan Loan  1M USD LIBOR+  4.00%  0.00%  4.09%  5/1/2025   4,924,683   4,905,261   4,922,910 
Harbor Freight Tools USA, Inc. Retail Term Loan B (10/20) Loan  1M USD LIBOR+  3.00%  0.75%  3.75%  10/20/2027   2,985,000   2,960,963   2,989,358 
Harland Clarke Holdings Corp. Media: Advertising, Printing & Publishing Term Loan Loan  3M USD LIBOR+  4.75%  1.00%  5.75%  11/3/2023   1,585,355   1,581,292   1,402,596 
Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan  1M USD LIBOR+  3.75%  1.00%  4.75%  6/3/2024   238,657   238,480   230,354 
Hillman Group Inc. (The) (New) Consumer goods: Durable Term Loan B-1 Loan  6M USD LIBOR+  2.75%  0.50%  3.25%  2/23/2028   4,156,118   4,145,728   4,148,346 
Hillman Group Inc. (The) (New)(a) Consumer goods: Durable Delayed Draw Term Loan (2/21) Loan  6M USD LIBOR+  2.75%  0.50%  3.25%  2/24/2028   -   (2,110)  (1,578)
HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan  1M USD LIBOR+  2.50%  0.00%  2.59%  8/18/2025   3,900,000   3,888,684   3,875,625 
Holley Purchaser, Inc Automotive Term Loan B Loan  3M USD LIBOR+  5.00%  0.00%  5.19%  10/24/2025   2,443,750   2,427,780   2,435,612 
Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan  1M USD LIBOR+  3.25%  0.75%  4.00%  11/12/2027   1,688,104   1,682,245   1,686,230 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan (3/21) Loan  1M USD LIBOR+  3.00%  0.00%  3.09%  3/17/2028   6,000,000   5,941,399   5,958,000 
Idera, Inc. High Tech Industries Term Loan (02/21) Loan  6M USD LIBOR+  3.75%  0.75%  4.50%  3/2/2028   4,896,805   4,884,403   4,871,293 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber Term Loan (1/21) Loan  3M USD LIBOR+  2.75%  0.50%  3.25%  1/29/2026   1,000,000   995,462   995,420 
INFINITE BIDCO LLC Wholesale Term Loan Loan  1M USD LIBOR+  3.75%  0.50%  4.25%  3/2/2028   1,500,000   1,496,283   1,492,500 
Ingram Micro Inc. High Tech Industries Term Loan B Loan  3M USD LIBOR+  3.50%  0.50%  4.00%  3/31/2028   1,500,000   1,485,000   1,500,630 
Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan  3M USD LIBOR+  4.00%  1.00%  5.00%  5/1/2024   3,412,722   3,356,456   3,399,924 
Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan  1M USD LIBOR+  3.50%  0.00%  3.59%  2/4/2027   495,000   492,965   492,936 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable Term Loan 4/21 Loan  3M USD LIBOR+  5.00%  0.75%  5.75%  4/7/2028   2,500,000   2,475,429   2,481,250 
Intermediate Dutch Holdings Services: Business Term Loan B Loan  1M USD LIBOR+  4.00%  0.00%  4.11%  3/6/2028   1,250,000   1,249,974   1,253,438 
Isagenix International, LLC Beverage, Food & Tobacco Term Loan Loan  3M USD LIBOR+  5.75%  1.00%  6.75%  6/14/2025   2,573,824   2,540,638   2,060,681 
Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+  3.50%  0.00%  3.61%  3/14/2025   2,957,262   2,935,237   2,879,634 
J Jill Group, Inc Retail Priming Term Loan Loan  3M USD LIBOR+  5.00%  1.00%  6.00%  5/8/2024   1,773,779   1,772,060   1,259,383 
Jane Street Group Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan  1M USD LIBOR+  2.75%  0.00%  2.84%  1/31/2028   3,990,000   3,983,483   3,960,793 
Jefferies Finance LLC / JFIN Co-Issuer Corp Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  3.00%  0.00%  3.13%  6/3/2026   3,785,681   3,771,444   3,765,579 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value  Issuer Name 
Journey Personal Care Corp. Consumer goods: Non-durable Term Loan B Loan  3M USD LIBOR+  4.25%  0.75%  5.00%  3/1/2028   1,000,000   995,057   1,002,500 
JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan  3M USD LIBOR+  5.50%  1.00%  6.50%  11/15/2025   4,356,412   4,321,901   4,149,483 
KAR Auction Services, Inc. Automotive Term Loan B (09/19) Loan  1M USD LIBOR+  2.25%  0.00%  2.38%  9/19/2026   246,250   245,803   240,709 
Kindred Healthcare, Inc. Healthcare & Pharmaceuticals Term Loan (6/18) Loan  1M USD LIBOR+  4.50%  0.00%  4.63%  7/2/2025   1,979,747   1,964,017   1,974,797 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Term Loan (1/21) (USD) Loan  3M USD LIBOR+  4.75%  0.50%  5.25%  2/12/2026   1,500,000   1,492,500   1,495,620 
Kodiak BP, LLC Construction & Building Term Loan Loan  3M USD LIBOR+  3.25%  0.75%  4.00%  3/13/2028   500,000   497,544   498,540 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  3M USD LIBOR+  4.75%  1.00%  5.75%  9/1/2027   498,750   487,470   501,244 
Lakeland Tours, LLC Hotel, Gaming & Leisure Priority Exit PIK Term Loan (9/20) Loan  3M USD LIBOR+  6.00%  1.25%  7.25%  9/25/2023   310,482   296,563   310,560 
Lakeland Tours, LLC Hotel, Gaming & Leisure 2nd Out Take Back PIK Term Loan Loan  3M USD LIBOR+  1.50%  1.25%  2.75%  9/25/2025   593,161   490,262   556,089 
Lakeland Tours, LLC Hotel, Gaming & Leisure Third Out PIK Term Loan Loan  3M USD LIBOR+  1.50%  1.25%  2.75%  9/25/2025   787,437   472,454   653,572 
Lakeland Tours, LLC Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan  Fixed  0.00%  0.00%  13.25%  9/27/2027   814,236   168,153   419,331 
Lealand Finance Company B.V. Energy: Oil & Gas Exit Term Loan Loan  1M USD LIBOR+  1.00%  0.00%  1.09%  6/30/2025   327,151   327,151   142,965 
Learfield Communications, Inc Media: Advertising, Printing & Publishing Initial Term Loan (A-L Parent) Loan  1M USD LIBOR+  3.25%  1.00%  4.25%  12/1/2023   478,750   477,864   444,979 
LIAISON ACQUISITION, LLC High Tech Industries Term Loan (3/21) Loan  6M USD LIBOR+  3.75%  0.75%  4.50%  3/4/2028   997,500   995,060   997,500 
Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  2/28/2025   2,694,077   2,668,083   2,673,871 
Liftoff Mobile, Inc. Media: Advertising, Printing & Publishing Term Loan Loan  3M USD LIBOR+  3.50%  0.75%  4.25%  3/16/2028   997,500   992,653   995,006 
Lightstone Generation LLC Energy: Electricity Term Loan B Loan  3M USD LIBOR+  3.75%  1.00%  4.75%  1/30/2024   1,322,520   1,321,304   1,051,020 
Lightstone Generation LLC Energy: Electricity Term Loan C Loan  3M USD LIBOR+  3.75%  1.00%  4.75%  1/30/2024   74,592   74,526   59,279 
Lindblad Expeditions, Inc. Hotel, Gaming & Leisure US 2018 Term Loan Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  3/21/2025   393,005   392,519   368,442 
Lindblad Expeditions, Inc. Hotel, Gaming & Leisure Cayman Term Loan Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  3/21/2025   98,251   98,130   92,110 
Liquid Tech Solutions Holdings, LLC Services: Business Term Loan Loan  6M USD LIBOR+  4.75%  0.00%  5.50%  3/17/2028   1,000,000   995,165   995,000 
LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan  1M USD LIBOR+  4.75%  0.00%  4.85%  8/31/2027   3,990,000   3,920,399   3,989,362 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan  1M USD LIBOR+  1.75%  0.00%  1.84%  11/11/2026   1,229,647   1,227,310   1,220,806 
MA FinanceCo LLC High Tech Industries Term Loan B4 Loan  3M USD LIBOR+  4.25%  1.00%  5.25%  6/5/2025   2,459,296   2,451,618   2,477,741 
MAGNITE, INC. Services: Business Term Loan Loan  3M USD LIBOR+  5.00%  0.75%  5.75%  4/1/2028   2,000,000   1,940,468   1,985,000 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan  1M USD LIBOR+  1.75%  0.00%  1.84%  8/29/2025   1,317,074   1,317,074   1,295,671 
Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan  3M USD LIBOR+  1.75%  0.00%  1.91%  2/15/2027   250,000   249,518   247,500 
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  4.50%  0.00%  4.59%  2/28/2025   3,418,429   3,390,515   3,378,912 
McAfee, LLC Services: Business Term Loan B Loan  1M USD LIBOR+  3.75%  0.00%  3.84%  9/30/2024   1,922,926   1,916,721   1,923,407 
Meredith Corporation Media: Advertising, Printing & Publishing Term Loan B2 Loan  1M USD LIBOR+  2.50%  0.00%  2.59%  1/31/2025   578,738   578,006   576,278 
Mermaid Bidco Inc. High Tech Industries Term Loan 12/20 Loan  3M USD LIBOR+  4.25%  0.75%  5.00%  12/22/2027   498,750   496,516   497,503 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value  Issuer Name 
Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan  3M USD LIBOR+  2.50%  0.00%  2.70%  3/1/2026   3,844,694   3,824,827   3,812,014 
Michaels Companies Inc Retail Term Loan B (Magic Mergeco) Loan  3M USD LIBOR+  4.25%  0.75%  5.00%  4/8/2028   1,500,000   1,485,239   1,502,970 
Mitchell International, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/20) Loan  1M USD LIBOR+  4.25%  0.50%  4.75%  11/29/2024   995,000   945,375   997,667 
MKS Instruments, Inc. High Tech Industries Term Loan B6 Loan  1M USD LIBOR+  1.75%  0.00%  1.84%  2/2/2026   875,615   869,473   872,113 
MLN US Holdco LLC Telecommunications Term Loan Loan  1M USD LIBOR+  4.50%  0.00%  4.61%  12/1/2025   977,500   976,320   864,648 
MMM Holdings, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+  5.75%  1.00%  6.75%  12/24/2026   6,635,552   6,525,213   6,639,732 
MRC Global Inc. Metals & Mining Term Loan B2 Loan  1M USD LIBOR+  3.00%  0.00%  3.09%  9/20/2024   351,484   351,032   348,556 
MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental) Loan  3M USD LIBOR+  3.75%  0.00%  3.95%  9/30/2024   2,842,097   2,805,201   2,766,299 
Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+  3.50%  0.00%  3.63%  11/14/2025   1,483,661   1,455,310   1,457,697 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan 2/21 Loan  3M USD LIBOR+  3.75%  0.75%  4.50%  3/2/2028   2,783,615   2,770,882   2,785,369 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C 2/21 Loan  3M USD LIBOR+  3.75%  0.75%  4.50%  3/2/2028   87,464   87,043   87,519 
National Mentor Holdings, Inc.(a) Healthcare & Pharmaceuticals Delayed Draw Term Loan 2/21 Loan  3M USD LIBOR+  3.75%  0.75%  4.50%  3/2/2028   -   -   81 
Neenah, Inc. Forest Products & Paper Term Loan B (03/21) Loan  2M USD LIBOR+  3.00%  0.50%  3.50%  4/6/2028   2,000,000   1,990,101   2,000,000 
NeuStar, Inc. Telecommunications Term Loan B4 (03/18) Loan  3M USD LIBOR+  3.50%  1.00%  4.50%  8/8/2024   2,641,566   2,613,561   2,553,734 
NeuStar, Inc. Telecommunications Term Loan B-5 Loan  3M USD LIBOR+  4.50%  1.00%  5.50%  8/8/2024   885,162   874,100   854,624 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Term Loan Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  9/18/2026   1,113,795   1,101,650   1,109,930 
Next Level Apparel, Inc. Retail Term Loan Loan  3M PL WIBOR+  6.00%  1.00%  7.00%  8/9/2024   1,762,840   1,752,237   1,621,813 
NM Z Parent Inc (Zep Inc) Chemicals, Plastics, & Rubber Term Loan Loan  6M USD LIBOR+  4.00%  1.00%  5.00%  8/9/2024   2,412,500   2,406,434   2,374,503 
NorthPole Newco S.a.r.l Aerospace & Defense Term Loan Loan  3M USD LIBOR+  7.00%  0.00%  7.20%  3/3/2025   5,239,726   4,845,245   4,506,164 
Novetta Solutions, LLC Aerospace & Defense Term Loan Loan  1M USD LIBOR+  5.00%  1.00%  6.00%  10/16/2022   1,894,870   1,890,672   1,886,589 
Novetta Solutions, LLC Aerospace & Defense Second Lien Term Loan Loan  1M USD LIBOR+  8.50%  1.00%  9.50%  10/16/2023   823,529   820,462   821,471 
Novolex Holdings, Inc (Flex Acquisition) Containers, Packaging & Glass Term Loan (02/21) Loan  3M USD LIBOR+  3.50%  0.50%  4.00%  3/2/2028   1,000,000   995,145   994,110 
NPC International, Inc.(b) Beverage, Food & Tobacco Term Loan Loan  Prime+  4.50%  1.00%  7.75%  4/19/2024   69,157   69,104   2,075 
Nuvei Technologies Corp. High Tech Industries US Term Loan Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  9/29/2025   250,000   249,767   250,000 
Organon & Co. Healthcare & Pharmaceuticals Term Loan USD Loan  3M USD LIBOR+  3.00%  0.50%  3.50%  4/7/2028   2,500,000   2,487,500   2,496,425 
Pacific Gas and Electric Company Utilities: Electric Term Loan Loan  3M USD LIBOR+  3.00%  0.50%  3.50%  6/18/2025   1,491,237   1,484,160   1,478,189 
PAE Holding Corp Aerospace & Defense Term Loan B (10/20) Loan  1M USD LIBOR+  4.50%  0.75%  5.25%  10/14/2027   1,995,000   1,967,492   1,995,000 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Term Loan 1/21 Loan  3M USD LIBOR+  4.50%  0.50%  5.00%  1/7/2028   500,000   496,497   500,000 
Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan  1M USD LIBOR+  3.75%  0.00%  3.84%  3/30/2027   495,196   485,099   492,720 
PaySafe Group PLC Services: Business Term Loan B1 (PI UK Holdco II) Loan  1M USD LIBOR+  3.00%  1.00%  4.00%  1/3/2025   1,052,873   1,049,412   1,053,010 
PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan  1M USD LIBOR+  2.50%  0.00%  2.59%  5/29/2026   855,192   851,939   850,814 
Penn National Gaming Hotel, Gaming & Leisure Term Loan B-1 Loan  1M USD LIBOR+  2.25%  0.75%  3.00%  10/15/2025   1,777,903   1,720,767   1,774,134 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value  Issuer Name 
Peraton Corp. Aerospace & Defense Term Loan B Loan  1M USD LIBOR+  3.75%  0.75%  4.50%  2/1/2028   5,000,000   4,975,338   5,004,850 
PGX Holdings, Inc. Services: Consumer Term Loan Loan  12M USD LIBOR+  5.25%  1.00%  6.25%  9/29/2023   3,075,640   3,057,381   2,919,305 
Pitney Bowes Inc Services: Business Term Loan B Loan  1M USD LIBOR+  4.00%  0.00%  4.10%  3/17/2028   3,000,000   2,981,661   3,001,255 
Pixelle Specialty Solutions LLC Forest Products & Paper Term Loan Loan  1M USD LIBOR+  6.50%  1.00%  7.50%  10/31/2024   3,535,026   3,512,371   3,521,028 
Plastipak Holdings Inc. Containers, Packaging & Glass Term Loan B (04/18) Loan  1M USD LIBOR+  2.50%  0.00%  2.60%  10/14/2024   2,789,599   2,773,113   2,784,132 
Playtika Holding Corp. High Tech Industries Term Loan B (3/21) Loan  1M USD LIBOR+  2.75%  0.00%  2.84%  3/13/2028   4,500,000   4,490,104   4,480,560 
PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan  6M USD LIBOR+  3.00%  0.75%  3.75%  12/29/2027   500,000   497,710   499,065 
Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan  1M USD LIBOR+  4.75%  0.75%  5.50%  2/12/2028   5,500,000   5,427,787   5,493,125 
PPD, Inc. Healthcare & Pharmaceuticals Term Loan (12/20) Loan  1M USD LIBOR+  2.25%  0.50%  2.75%  1/13/2028   500,000   497,667   498,930 
Pre-Paid Legal Services, Inc. Services: Consumer Incremental Term Loan Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  5/1/2025   995,000   982,061   994,383 
Presidio, Inc. Services: Business Term Loan B (1/20) Loan  1M USD LIBOR+  3.50%  0.00%  3.60%  1/22/2027   496,250   495,369   493,977 
Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan  12M USD LIBOR+  2.75%  0.75%  3.50%  9/23/2026   3,583,174   3,571,738   3,580,952 
PRIORITY HOLDINGS, LLC Services: Consumer Term Loan Loan  3M USD LIBOR+  5.75%  1.00%  6.75%  4/27/2027   4,525,424   4,435,373   4,440,570 
PRIORITY HOLDINGS, LLC(a) Services: Consumer Delayed Draw Term Loan Loan  3M USD LIBOR+  5.75%  1.00%  6.75%  4/21/2027   -   -   (27,648)
PriSo Acquisition Corporation Construction & Building Term Loan (01/21) Loan  3M USD LIBOR+  3.25%  0.75%  4.00%  12/28/2027   500,000   497,590   496,640 
Project Leopard Holdings Inc High Tech Industries Term Loan Loan  6M USD LIBOR+  4.75%  1.00%  5.75%  7/5/2024   498,750   497,503   499,284 
Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan  1M USD LIBOR+  3.00%  1.00%  4.00%  1/29/2025   485,100   483,799   477,217 
PUG LLC Services: Consumer Term Loan B (02/20) Loan  1M USD LIBOR+  3.50%  0.00%  3.59%  2/12/2027   488,788   486,755   475,957 
Rackspace Technology Global, Inc. High Tech Industries Term Loan (1/21) Loan  3M USD LIBOR+  2.75%  0.75%  3.50%  2/15/2028   500,000   497,684   497,550 
Radiology Partners Holdings, LLC Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+  4.25%  0.00%  4.35%  7/4/2025   1,432,727   1,427,844   1,431,452 
RealPage, Inc. High Tech Industries Term Loan (04/21) Loan  1M USD LIBOR+  3.25%  0.50%  3.75%  4/24/2028   1,000,000   997,719   998,500 
Renaissance Learning, Inc. Services: Consumer Term Loan (5/18) Loan  1M USD LIBOR+  3.25%  0.00%  3.34%  5/30/2025   2,982,444   2,954,678   2,951,009 
Rent-A-Center, Inc. Retail Term Loan B (01/21) Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  2/17/2028   500,000   497,671   502,710 
REP WWEX (Worldwide Express) Aquisition Parent, LLC Transportation: Consumer Term Loan B Loan  6M USD LIBOR+  4.00%  1.00%  5.00%  2/2/2024   1,922,830   1,921,852   1,913,812 
Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan  6M USD LIBOR+  5.50%  1.00%  6.50%  12/20/2024   3,877,311   3,791,756   3,835,630 
Resideo Funding Inc. Services: Consumer Term Loan (1/21) Loan  1M USD LIBOR+  2.25%  0.50%  2.75%  2/11/2028   1,500,000   1,496,263   1,498,125 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan  3M USD LIBOR+  3.75%  1.00%  4.75%  4/30/2024   2,644,078   2,644,078   2,647,383 
Rexnord LLC Capital Equipment Term Loan (11/19) Loan  1M USD LIBOR+  1.75%  0.00%  1.84%  8/21/2024   862,069   862,069   860,681 
Reynolds Consumer Products LLC Containers, Packaging & Glass Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  1.84%  1/29/2027   1,303,182   1,301,941   1,296,666 
Reynolds Group Holdings Inc. Metals & Mining Term Loan B2 Loan  1M USD LIBOR+  3.25%  0.00%  3.34%  2/5/2026   3,491,250   3,472,633   3,460,073 
Robertshaw US Holding Corp. Consumer goods: Durable Term Loan B Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  2/28/2025   970,000   968,628   931,811 
Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan  1M USD LIBOR+  4.25%  0.00%  4.34%  11/28/2025   2,927,595   2,918,755   2,869,951 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value  Issuer Name 
RP Crown Parent, LLC High Tech Industries Term Loan B (07/20) Loan  1M USD LIBOR+  3.00%  1.00%  4.00%  1/31/2026   1,985,000   1,976,585   1,980,038 
Russell Investments US Inst'l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan  6M USD LIBOR+  3.50%  1.00%  4.50%  6/2/2025   5,637,965   5,593,655   5,590,381 
RV Retailer LLC Automotive Term Loan Loan  3M USD LIBOR+  4.00%  0.75%  4.75%  2/8/2028   2,000,000   1,981,119   2,002,500 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  3.00%  0.75%  3.75%  9/1/2027   497,500   490,812   497,192 
S&S HOLDINGS LLC Services: Business Term Loan Loan  3M USD LIBOR+  5.00%  0.50%  5.50%  3/10/2028   2,000,000   1,941,161   1,960,000 
Sally Holdings LLC Retail Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  2.35%  7/5/2024   768,409   766,408   767,449 
Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan  1M USD LIBOR+  4.50%  1.00%  5.50%  4/25/2025   992,500   968,147   997,463 
Savage Enterprises, LLC Energy: Oil & Gas Term Loan B (02/20) Loan  1M USD LIBOR+  3.00%  0.00%  3.10%  8/1/2025   1,769,504   1,755,546   1,769,186 
Schweitzer-Mauduit International, Inc. High Tech Industries Term Loan B Loan  1M USD LIBOR+  3.75%  0.75%  4.50%  2/9/2028   3,000,000   2,982,752   2,962,500 
Shutterfly Inc Media: Advertising, Printing & Publishing Term Loan B Loan  3M USD LIBOR+  6.00%  1.00%  7.00%  9/25/2026   800,968   768,718   803,539 
Sirius Computer Solutions, Inc. High Tech Industries Term Loan 1/20 Loan  1M USD LIBOR+  3.50%  0.00%  3.59%  7/1/2026   1,965,125   1,961,756   1,957,756 
SiteOne Landscape Supply, LLC Services: Business Term Loan (3/21) Loan  3M USD LIBOR+  2.00%  0.50%  2.50%  3/18/2028   1,000,000   997,527   998,125 
SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan  1M USD LIBOR+  2.50%  0.00%  2.59%  1/23/2025   493,750   493,750   477,397 
Sotheby's Services: Business Term Loan (1/21) Loan  3M USD LIBOR+  4.75%  0.75%  5.50%  1/15/2027   3,281,059   3,225,334   3,300,188 
Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber Term Loan (04/21) Loan  3M USD LIBOR+  3.50%  0.75%  4.25%  4/29/2028   2,000,000   1,990,000   2,001,260 
Specialty Pharma III Inc. Services: Business Term Loan Loan  1M USD LIBOR+  4.50%  0.75%  5.25%  2/24/2028   2,000,000   1,980,475   1,980,000 
Spectrum Brands, Inc. Consumer goods: Durable Term Loan (2/21) Loan  3M USD LIBOR+  2.00%  0.50%  2.50%  3/3/2028   500,000   498,801   496,875 
Spin Holdco, Inc. Services: Consumer Term Loan 3/21 Loan  3M USD LIBOR+  4.00%  0.75%  4.75%  3/4/2028   3,000,000   2,982,790   2,994,390 
SRAM, LLC Consumer goods: Durable Term Loan (05/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.25%  5/12/2028   4,000,000   3,993,419   4,003,320 
SS&C Technologies, Inc. Services: Business Term Loan B3 Loan  1M USD LIBOR+  1.75%  0.00%  1.84%  4/16/2025   227,838   227,511   225,248 
SS&C Technologies, Inc. Services: Business Term Loan B4 Loan  1M USD LIBOR+  1.75%  0.00%  1.84%  4/16/2025   171,974   171,731   170,019 
SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan  1M USD LIBOR+  1.75%  0.00%  1.84%  4/16/2025   487,250   486,503   482,455 
Staples, Inc. Wholesale Term Loan (03/19) Loan  3M USD LIBOR+  5.00%  0.00%  5.18%  4/16/2026   4,420,291   4,281,071   4,311,021 
Stats LLC Hotel, Gaming & Leisure Term Loan Loan  3M USD LIBOR+  5.25%  0.00%  5.41%  7/10/2026   1,975,000   1,937,408   1,966,369 
Storable, Inc High Tech Industries Term Loan B Loan  3M USD LIBOR+  3.25%  0.50%  3.75%  4/17/2028   500,000   498,796   497,500 
Syncsort Incorporated High Tech Industries Term Loan (3/21) Loan  3M USD LIBOR+  4.25%  0.75%  5.00%  4/23/2028   2,000,000   1,990,148   1,990,620 
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  5.25%  1.00%  6.25%  7/15/2025   4,462,500   4,375,178   4,458,038 
Tenneco Inc Capital Equipment Term Loan B Loan  1M USD LIBOR+  3.00%  0.00%  3.09%  10/1/2025   1,466,250   1,456,872   1,442,057 
Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  4.00%  1.00%  5.00%  9/27/2024   1,935,000   1,933,403   1,854,369 
The Octave Music Group, Inc (Touchtunes) Services: Business Term Loan B Loan  1M USD LIBOR+  5.25%  1.00%  6.25%  5/29/2025   3,862,069   3,830,224   3,717,241 
Thor Industries, Inc. Automotive USD Term Loan (3/21) Loan  1M USD LIBOR+  3.00%  0.00%  3.13%  2/1/2026   2,935,080   2,877,153   2,937,276 
Tivity Health, Inc. Healthcare & Pharmaceuticals Term Loan A Loan  1M USD LIBOR+  4.25%  0.00%  4.34%  3/7/2024   558,772   555,397   557,549 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value  Issuer Name 
Tivity Health, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+  5.25%  0.00%  5.34%  3/6/2026   1,008,704   990,066   1,006,435 
Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan  1M USD LIBOR+  3.50%  0.75%  4.25%  8/18/2027   498,750   492,116   498,750 
Transdigm, Inc. Aerospace & Defense Term Loan G (02/20) Loan  1M USD LIBOR+  2.25%  0.00%  2.34%  8/22/2024   4,054,964   4,058,185   4,004,277 
Travel Leaders Group, LLC Hotel, Gaming & Leisure Term Loan B (08/18) Loan  1M USD LIBOR+  4.00%  0.00%  4.09%  1/25/2024   2,431,250   2,429,510   2,313,748 
TRC Companies, Inc. Services: Business Term Loan Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  6/21/2024   3,315,141   3,308,144   3,290,277 
TRC Companies, Inc. Services: Business Term Loan (1/21) Loan  1M USD LIBOR+  4.50%  0.75%  5.25%  6/21/2024   2,479,433   2,469,041   2,467,035 
Trident LS Merger Sub Corporation Services: Consumer Term Loan (03/18) Loan  1M USD LIBOR+  3.25%  0.00%  3.34%  5/1/2025   2,000,000   2,004,661   1,981,880 
TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco Term Loan (03/21) Loan  3M USD LIBOR+  3.50%  0.50%  4.00%  3/31/2028   1,500,000   1,492,701   1,498,125 
Tronox Pigments (Netherlands) B.V. Chemicals, Plastics, & Rubber Term Loan Loan  3M USD LIBOR+  2.50%  0.00%  2.68%  3/10/2028   495,769   494,555   492,051 
Truck Hero, Inc. Transportation: Cargo Term Loan (1/21) Loan  1M USD LIBOR+  3.75%  0.75%  4.50%  1/29/2028   1,500,000   1,500,000   1,500,000 
TruGreen Limited Partnership Services: Consumer Term Loan Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  10/29/2027   971,545   964,300   973,061 
Twin River Worldwide Holdings, Inc. Hotel, Gaming & Leisure Term Loan B Loan  3M USD LIBOR+  2.75%  0.00%  2.95%  5/10/2026   982,500   978,885   973,412 
Uber Technologies, Inc. Transportation: Consumer Term Loan B (2/21) Loan  1M USD LIBOR+  3.50%  0.00%  3.59%  2/25/2027   3,979,194   3,935,742   3,976,727 
Ultra Clean Holdings, Inc. High Tech Industries Incremental Term Loan 3/21 Loan  1M USD LIBOR+  3.75%  0.00%  3.84%  8/27/2025   993,750   988,949   994,992 
Unimin Corporation Metals & Mining Term Loan (12/20) Loan  3M USD LIBOR+  4.00%  1.00%  5.00%  7/31/2026   496,815   467,847   484,891 
United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+  3.50%  0.00%  3.59%  10/22/2025   1,929,662   1,842,097   1,931,418 
United Road Services Inc. Transportation: Cargo Term Loan (10/17) Loan  6M USD LIBOR+  5.75%  1.00%  6.75%  9/1/2024   944,590   937,482   758,034 
Univar Inc. Chemicals, Plastics, & Rubber Term Loan B3 (11/17) Loan  1M USD LIBOR+  2.25%  0.00%  2.34%  7/1/2024   1,627,723   1,623,611   1,625,949 
Univar Inc. Chemicals, Plastics, & Rubber Univar 5/21 T/L B6 Loan  3M USD LIBOR+  2.00%  0.00%  2.00%  5/26/2028   2,000,000   1,990,000   1,996,260 
Univision Communications Inc. Media: Broadcasting & Subscription 2020 Replacement Term Loan Loan  1M USD LIBOR+  3.75%  1.00%  4.75%  3/13/2026   2,483,907   2,476,102   2,489,769 
US Concrete Inc Construction & Building Term Loan (5/21) Loan  3M USD LIBOR+  3.00%  0.50%  3.50%  6/30/2028   2,000,000   1,995,000   2,000,000 
US Ecology, Inc. Environmental Industries Term Loan B Loan  1M USD LIBOR+  2.50%  0.00%  2.59%  11/2/2026   493,750   492,881   494,061 
Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+  3.00%  0.00%  3.09%  1/20/2028   99,750   99,524   99,646 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan  3M USD LIBOR+  4.00%  0.00%  4.15%  8/20/2025   1,393,034   1,386,950   1,372,724 
VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  3.00%  0.00%  3.10%  3/1/2026   3,100,888   3,091,860   3,098,966 
Virence Intermediate Holdings LLC (Athenahealth / VVC Holding) Healthcare & Pharmaceuticals Term Loan B (01/21) Loan  1M USD LIBOR+  4.25%  0.00%  4.35%  2/11/2026   2,965,000   2,937,251   2,973,154 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  6M USD LIBOR+  2.25%  0.75%  3.00%  6/3/2024   2,278,506   2,278,252   2,275,658 
Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  1.85%  12/31/2025   914,798   914,187   909,464 
Vizient, Inc Healthcare & Pharmaceuticals Term Loan B-6 Loan  1M USD LIBOR+  2.00%  0.00%  2.09%  5/6/2026   490,000   489,184   487,246 
VM Consolidated, Inc. Construction & Building Term Loan B (3/21) Loan  3M USD LIBOR+  3.25%  0.00%  3.45%  3/19/2028   2,357,005   2,353,437   2,347,176 
Vouvray US Finance LLC High Tech Industries Term Loan Loan  1M USD LIBOR+  3.00%  1.00%  4.00%  3/11/2024   480,000   480,000   429,600 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G Loan  1M USD LIBOR+  2.13%  0.00%  2.22%  1/20/2028   1,250,000   1,249,724   1,241,925 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value  Issuer Name 
Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries Term Loan (3/18) Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  3/15/2025   493,639   491,781   488,293 
Watlow Electric Manufacturing Company High Tech Industries Term Loan B Loan  3M USD LIBOR+  4.00%  0.50%  4.50%  3/2/2028   2,500,000   2,487,754   2,504,175 
WeddingWire, Inc. Services: Consumer Term Loan Loan  2M USD LIBOR+  4.50%  0.00%  4.65%  12/19/2025   4,907,449   4,899,471   4,895,180 
West Corporation Telecommunications Term Loan B (Olympus Merger) Loan  3M USD LIBOR+  4.00%  1.00%  5.00%  10/10/2024   1,221,591   1,167,084   1,187,802 
West Corporation Telecommunications Term Loan B Loan  3M USD LIBOR+  3.50%  1.00%  4.50%  10/10/2024   2,923,593   2,870,970   2,828,986 
Western Dental Services, Inc. Retail Term Loan (12/18) Loan  1M USD LIBOR+  5.25%  1.00%  6.25%  6/30/2023   422,920   423,244   421,863 
Western Digital Corporation High Tech Industries Term Loan B-4 Loan  1M USD LIBOR+  1.75%  0.00%  1.84%  4/29/2023   583,135   576,100   582,511 
WEX Inc. Services: Business Term Loan B (3/21) Loan  1M USD LIBOR+  2.25%  0.00%  2.34%  3/31/2028   2,000,000   1,990,153   1,990,500 
WildBrain Ltd. Media: Diversified & Production Term Loan Loan  1M USD LIBOR+  4.25%  0.75%  5.00%  3/27/2028   2,000,000   1,960,819   1,987,080 
Wirepath LLC Consumer goods: Non-durable Term Loan Loan  3M USD LIBOR+  4.00%  0.00%  4.20%  8/5/2024   2,917,712   2,901,034   2,859,358 
WP CITYMD BIDCO LLC Services: Consumer Term Loan B (1/21) Loan  6M USD LIBOR+  3.75%  0.75%  4.50%  8/13/2026   5,451,338   5,425,517   5,464,094 
Xperi Corporation High Tech Industries Term Loan Loan  1M USD LIBOR+  4.00%  0.00%  4.09%  6/1/2025   2,811,915   2,673,536   2,811,915 
ZEBRA BUYER LLC Banking, Finance, Insurance & Real Estate Term Loan 4/21 Loan  3M USD LIBOR+  3.25%  0.50%  3.75%  4/22/2028   1,000,000   995,000   1,003,330 
Zekelman Industries, Inc. Metals & Mining Term Loan (01/20) Loan  1M USD LIBOR+  2.00%  0.00%  2.10%  1/25/2027   970,775   970,775   961,067 
                              $677,145,260  $673,434,715 

  Number of Shares  Cost  Fair Value 
Cash and cash equivalents            
U.S. Bank Money Market (c)  10,710,367  $10,710,367  $10,710,367 
Total cash and cash equivalents  10,710,367  $10,710,367  $10,710,367 

(a)All or a portion of this investment has an unfunded commitment as of May 31,November 30, 2021
(b)As of May 31,November 30, 2021, the investment was in default and on non-accrual status.
(c)Included within cash and cash equivalents in Saratoga CLO'sCLO’s Statements of Assets and Liabilities as of May 31,November 30, 2021.

 

LIBOR—London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

1W USD LIBOR—The 1 week USD LIBOR rate as of May 31, 2021 was 0.06%.WIBOR - Warsaw Interbank Offered Rate

1M USD LIBOR—The 1 month USD LIBOR rate as of May 31,November 30, 2021 was 0.09%.

2M USD LIBOR—The 2 month USD LIBOR rate as of May 31,November 30, 2021 was 0.12%0.10%.

3M USD LIBOR—The 3 month USD LIBOR rate as of May 31,November 30, 2021 was 0.13%0.17%.

6M USD LIBOR—The 6 month USD LIBOR rate as of May 31,November 30, 2021 was 0.17%0.24%.

12M USD LIBOR - The 12 month USD LIBOR rate as of May 31,November 30, 2021 was 0.25%0.38%

3M3 PL WIBOR - The 3 month PL WIBOR rate as of May 31,November 30, 2021 was 0.21%2.06%

3M SOFR - The 3 month SOFR rate as of November 30, 2021 was 0.05%

Prime—The Prime Rate as of May 31,November 30, 2021 was 3.25%.

 



Saratoga Investment Corp. CLO 2013-1, Ltd.

Schedule of Investments

February 28, 2021

 

Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value  Industry Asset
Name		 Asset  
Type		 Reference Rate/Spread LIBOR Floor Current Rate
(All In)		 Maturity Date Principal/ Number of Shares Cost Fair Value 
Covia Holdings C/S (Unimin) Metals & Mining Common Stock Equity -  -   -   -   -   49,312   385,327  $362,443  Metals & Mining Common Stock  Equity  -  -   -   -   -   49,312   385,327  $362,443 
Fusion Connect Warrant Telecommunications Warrants Equity -  -   -   -   -   32,832   -   328  Telecommunications Warrants  Equity  - -   -   -   -   32,832   -   328 
J Jill Common Stock Retail Common Stock Equity -  -   -   -   -   5,085   -   24,966  Retail Common Stock  Equity  - -   -   -   -   5,085   -   24,966 
McDermott International (Americas), Inc. Energy: Oil & Gas Lealand Finance (McDermott International) C/S - Cl Equity -  -   -   -   -   141,797   141,797   113,438  Energy: Oil & Gas Lealand Finance (McDermott International) C/S - Cl  Equity  - -   -   -   -   141,797   141,797   113,438 
ABB Con-Cise Optical Group LLC Consumer goods: Non-durable Term Loan B Loan 6M USD LIBOR+  5.00%  1.00%  6.00%  6/15/2023   2,060,408  $2,046,779   1,952,875  Consumer goods: Non-durable Term Loan B  Loan  6M USD LIBOR+ 5.00%  1.00%  6.00%  6/15/2023   2,060,408  $2,046,779   1,952,875 
Adtalem Global Education Inc. Services: Business Adtalem Global Education T/L B (02/21) Loan 1M USD LIBOR+  4.50%  0.75%�� 5.25%  2/12/2028   2,000,000   1,980,000   1,980,000  Services: Business Adtalem Global Education T/L B (02/21)  Loan  1M USD LIBOR+ 4.50%  0.75%  5.25%  2/12/2028   2,000,000   1,980,000   1,980,000 
Advisor Group, Inc. Banking, Finance, Insurance & Real Estate Advisor Group Holdings T/L B1 Loan 1M USD LIBOR+  4.50%  0.00%  4.61%  7/31/2026   995,000   994,026   996,383  Banking, Finance, Insurance & Real Estate Advisor Group Holdings T/L B1  Loan  1M USD LIBOR+ 4.50%  0.00%  4.61%  7/31/2026   995,000   994,026   996,383 
Aegis Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  5.50%  1.00%  6.50%  5/9/2025   3,867,445   3,842,999   3,527,419  Healthcare & Pharmaceuticals Term Loan  Loan  3M USD LIBOR+ 5.50%  1.00%  6.50%  5/9/2025   3,867,445   3,842,999   3,527,419 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (09/20) Loan 1M USD LIBOR+  2.75%  0.75%  3.50%  1/4/2026   500,000   495,337   497,500  Healthcare & Pharmaceuticals Term Loan (09/20)  Loan  1M USD LIBOR+ 2.75%  0.75%  3.50%  1/4/2026   500,000   495,337   497,500 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (1/19) Loan 1M USD LIBOR+  2.75%  0.00%  2.88%  1/4/2026   491,250   491,250   487,566  Healthcare & Pharmaceuticals Term Loan (1/19)  Loan  1M USD LIBOR+ 2.75%  0.00%  2.88%  1/4/2026   491,250   491,250   487,566 
Ahead Data Blue, LLC Services: Business Term Loan (10/20) Loan 6M USD LIBOR+  5.00%  1.00%  6.00%  9/18/2027   3,000,000   2,885,073   3,017,250  Services: Business Term Loan (10/20)  Loan  6M USD LIBOR+ 5.00%  1.00%  6.00%  9/18/2027   3,000,000   2,885,073   3,017,250 
AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense AI Convoy (Luxembourg) USD T/L B Loan 6M USD LIBOR+  3.50%  1.00%  4.50%  1/18/2027   1,488,750   1,482,360   1,486,353  Aerospace & Defense AI Convoy (Luxembourg) USD T/L B  Loan  6M USD LIBOR+ 3.50%  1.00%  4.50%  1/18/2027   1,488,750   1,482,360   1,486,353 
AIS HoldCo, LLC Services: Business Term Loan Loan 3M USD LIBOR+  5.00%  0.00%  5.21%  8/15/2025   5,246,875   5,082,782   5,089,469  Services: Business Term Loan  Loan  3M USD LIBOR+ 5.00%  0.00%  5.21%  8/15/2025   5,246,875   5,082,782   5,089,469 
Alchemy Copyrights, LLC Media: Diversified & Production Term Loan B Loan 1M USD LIBOR+  3.25%  0.75%  4.00%  8/16/2027   498,750   495,356   498,750  Media: Diversified & Production Term Loan B  Loan  1M USD LIBOR+ 3.25%  0.75%  4.00%  8/16/2027   498,750   495,356   498,750 
Alchemy US Holdco 1, LLC Metals & Mining Term Loan Loan 1M USD LIBOR+  5.50%  0.00%  5.61%  10/10/2025   1,900,000   1,879,839   1,850,923  Metals & Mining Term Loan  Loan  1M USD LIBOR+ 5.50%  0.00%  5.61%  10/10/2025   1,900,000   1,879,839   1,850,923 
Alion Science and Technology Corporation Aerospace & Defense Term Loan (2/21) Loan 1M USD LIBOR+  2.75%  0.75%  3.50%  7/23/2024   3,990,000   3,974,081   3,998,299  Aerospace & Defense Term Loan (2/21)  Loan  1M USD LIBOR+ 2.75%  0.75%  3.50%  7/23/2024   3,990,000   3,974,081   3,998,299 
AlixPartners, LLP Banking, Finance, Insurance & Real Estate AlixPartners T/L B (01/21) Loan 1M USD LIBOR+  2.75%  0.50%  3.25%  1/27/2028   250,000   249,375   249,888  Banking, Finance, Insurance & Real Estate AlixPartners T/L B (01/21)  Loan  1M USD LIBOR+ 2.75%  0.50%  3.25%  1/27/2028   250,000   249,375   249,888 
Allen Media, LLC Media: Diversified & Production Allen Media T/L B (1/20) Loan 3M USD LIBOR+  5.50%  0.00%  5.75%  2/10/2027   2,977,027   2,964,383   2,971,460  Media: Diversified & Production Allen Media T/L B (1/20)  Loan  3M USD LIBOR+ 5.50%  0.00%  5.75%  2/10/2027   2,977,027   2,964,383   2,971,460 
Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate Term Loan B (03/18) Loan 3M USD LIBOR+  4.00%  1.00%  5.00%  4/3/2024   1,223,297   1,218,530   1,040,940  Banking, Finance, Insurance & Real Estate Term Loan B (03/18)  Loan  3M USD LIBOR+ 4.00%  1.00%  5.00%  4/3/2024   1,223,297   1,218,530   1,040,940 
Altium Packaging LLC Containers, Packaging & Glass Altium Packaging (Consolidated Container) T/L (01/ Loan 3M USD LIBOR+  2.75%  0.50%  3.25%  1/29/2028   500,000   497,500   499,000  Containers, Packaging & Glass Altium Packaging (Consolidated Container) T/L (01/  Loan  3M USD LIBOR+ 2.75%  0.50%  3.25%  1/29/2028   500,000   497,500   499,000 
Altra Industrial Motion Corp. Capital Equipment Term Loan Loan 1M USD LIBOR+  2.00%  0.00%  2.11%  10/1/2025   1,522,387   1,519,700   1,520,012  Capital Equipment Term Loan  Loan  1M USD LIBOR+ 2.00%  0.00%  2.11%  10/1/2025   1,522,387   1,519,700   1,520,012 
American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan Loan 1M USD LIBOR+  4.50%  1.00%  5.50%  4/6/2024   4,230,503   4,228,066   4,239,302  Media: Advertising, Printing & Publishing Term Loan  Loan  1M USD LIBOR+ 4.50%  1.00%  5.50%  4/6/2024   4,230,503   4,228,066   4,239,302 
American Trailer World Corp Automotive American Trailer World T/L Loan 1M USD LIBOR+  3.75%  0.75%  4.50%  2/17/2028   2,000,000   1,990,000   1,990,000  Automotive American Trailer World T/L  Loan  1M USD LIBOR+ 3.75%  0.75%  4.50%  2/17/2028   2,000,000   1,990,000   1,990,000 
AmeriLife Holdings LLC Banking, Finance, Insurance & Real Estate AmeriLife T/L Loan 1M USD LIBOR+  4.00%  0.00%  4.12%  3/18/2027   1,492,642   1,484,080   1,490,149  Banking, Finance, Insurance & Real Estate AmeriLife T/L  Loan  1M USD LIBOR+ 4.00%  0.00%  4.12%  3/18/2027   1,492,642   1,484,080   1,490,149 
AmWINS Group, LLC Banking, Finance, Insurance & Real Estate AmWINS Group (2/21) T/L Loan 1M USD LIBOR+  2.25%  0.75%  3.00%  2/17/2028   2,000,000   1,995,000   1,999,160  Banking, Finance, Insurance & Real Estate AmWINS Group (2/21) T/L  Loan  1M USD LIBOR+ 2.25%  0.75%  3.00%  2/17/2028   2,000,000   1,995,000   1,999,160 
Anastasia Parent LLC Consumer goods: Non-durable Term Loan  Loan  3M USD LIBOR+ 3.75%  0.00%  4.00%  8/11/2025   977,500   974,191   669,891 
Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17)  Loan  3M USD LIBOR+ 2.75%  1.00%  3.75%  12/7/2023   480,088   478,981   407,076 

 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value 
Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+  3.75%  0.00%  4.00%  8/11/2025   977,500   974,191   669,891 
Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan 3M USD LIBOR+  2.75%  1.00%  3.75%  12/7/2023   480,088   478,981   407,076 
Anchor Packaging, LLC Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+  4.00%  0.00%  4.11%  7/10/2026   997,468   987,853   999,962 
APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan 1M USD LIBOR+  2.50%  0.00%  2.61%  10/1/2026   990,000   985,758   990,000 
APLP Holdings Limited Partnership Energy: Electricity APLP Holdings T/L B (01/20) Loan 1M USD LIBOR+  2.50%  1.00%  3.50%  4/14/2025   1,618,421   1,618,421   1,617,207 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.75%  0.00%  2.86%  5/15/2026   3,000,000   2,960,051   2,925,000 
AppLovin Corporation High Tech Industries Applovin T/L B Loan 1M USD LIBOR+  3.50%  0.00%  3.61%  8/15/2025   1,000,000   1,000,000   998,100 
Aramark Corporation Services: Consumer Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  1.86%  1/15/2027   2,481,250   2,401,701   2,454,105 
Arctic Glacier U.S.A., Inc. Beverage, Food & Tobacco Term Loan (3/18) Loan 3M USD LIBOR+  3.50%  1.00%  4.50%  3/20/2024   3,350,967   3,337,028   3,140,124 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan 1M USD LIBOR+  4.25%  0.00%  4.36%  10/1/2025   1,960,000   1,956,623   1,954,492 
ARISTOCRAT LEISURE LIMITED Hotel, Gaming & Leisure Term Loan (5/20) Loan 2M USD LIBOR+  3.75%  1.00%  4.75%  10/19/2024   995,000   978,205   1,000,184 
ASG Technologies Group, Inc High Tech Industries Term Loan Loan 1M USD LIBOR+  3.50%  1.00%  4.50%  7/31/2024   461,401   460,194   454,480 
ASP MSG Acquisition Co., Inc Beverage, Food & Tobacco Term Loan (2/17) Loan 1M USD LIBOR+  4.00%  1.00%  5.00%  8/16/2023   3,830,991   3,793,847   3,835,779 
Aspen Dental Management, Inc. Services: Consumer Term Loan B Loan 1M USD LIBOR+  2.75%  0.00%  2.86%  4/30/2025   1,950,276   1,944,024   1,926,872 
Asplundh Tree Expert, LLC Services: Business Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  2.61%  9/4/2027   997,500   992,854   998,128 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B6 Loan 1M USD LIBOR+  3.00%  0.00%  3.11%  11/3/2023   328,929   327,483   328,244 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan 1M USD LIBOR+  3.25%  0.00%  3.36%  12/18/2026   1,525,365   1,515,790   1,520,362 
Avast Software S.R.O. (Sybil Finance) High Tech Industries Term Loan B (4/18) Loan 3M USD LIBOR+  2.25%  1.00%  3.25%  9/29/2023   650,351   642,686   650,351 
Avaya, Inc. Telecommunications Term Loan B1 Loan 1M USD LIBOR+  4.25%  0.00%  4.36%  12/15/2027   1,755,766   1,745,975   1,760,437 
Avaya, Inc. Telecommunications Avaya T/L B-2 Loan 1M USD LIBOR+  4.00%  0.00%  4.11%  12/15/2027   1,000,000   1,000,000   1,001,250 
Avison Young (Canada) Inc Services: Business Term Loan Loan 3M USD LIBOR+  5.00%  0.00%  5.19%  1/31/2026   3,441,108   3,392,968   3,441,108 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3 Loan 1M USD LIBOR+  1.75%  0.75%  2.50%  1/15/2025   1,000,000   869,301   996,390 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 Loan 1M USD LIBOR+  2.50%  0.75%  3.25%  12/20/2027   500,000   495,171   500,625 
Azalea TopCo, Inc. Services: Business Incremental Term Loan Loan 3M USD LIBOR+  4.00%  0.75%  4.75%  7/24/2026   500,000   495,287   501,250 
B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  2.61%  10/10/2026   706,458   700,750   706,960 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan 1M USD LIBOR+  1.75%  0.00%  1.86%  11/19/2026   1,485,000   1,447,423   1,469,912 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  4.00%  0.75%  4.75%  10/14/2027   997,500   983,184   1,002,488 
BALL METALPACK, LLC (PE Spray) Containers, Packaging & Glass Term Loan Loan 3M USD LIBOR+  4.50%  0.00%  4.69%  7/25/2025   3,904,887   3,891,579   3,887,823 
Bass Pro Group, LLC Retail Term Loan B (02/21) Loan 1M USD LIBOR+  4.25%  0.75%  5.00%  2/26/2028   1,000,000   995,000   1,000,780 
Berry Plastics Holding Corporation Chemicals, Plastics, & Rubber Term Loan Y Loan 1M USD LIBOR+  2.00%  0.00%  2.12%  7/1/2026   4,937,374   4,932,962   4,932,980 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.25%  0.00%  2.36%  4/23/2026   1,000,000   992,500   985,000 

Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Blackstone Mortgage T/L B-2 Loan 1M USD LIBOR+  4.75%  1.00%  5.75%  4/23/2026   1,494,994   1,484,017   1,498,731 
Blount International, Inc. Forest Products & Paper Term Loan B (09/18) Loan 1M USD LIBOR+  3.75%  1.00%  4.75%  4/12/2023   3,418,806   3,416,907   3,422,225 
Blucora, Inc. Services: Consumer Term Loan (11/17) Loan 3M USD LIBOR+  4.00%  1.00%  5.00%  5/22/2024   2,451,227   2,443,549   2,454,291 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan 1M USD LIBOR+  2.00%  0.00%  2.12%  5/24/2027   1,485,050   1,473,875   1,475,620 
Boxer Parent Company, Inc. High Tech Industries Boxer Parent Company T/L (BMC Software) (2/21) Loan 1M USD LIBOR+  3.75%  0.00%  3.90%  10/2/2025   528,897   528,897   528,829 
Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  4.25%  0.00%  4.49%  9/5/2025   977,500   974,177   975,868 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Phoenix Guarantor (Brightspring) T/L (02/21) Loan 6M USD LIBOR+  3.50%  0.00%  3.76%  3/5/2026   1,000,000   1,000,000   1,000,710 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan 1M USD LIBOR+  3.25%  0.00%  3.36%  1/22/2027   2,009,429   2,007,872   1,996,207 
Brookfield WEC Holdings Inc. Energy: Electricity Brookfield WEC T/L (Westinghouse) (1/21) Loan 1M USD LIBOR+  2.75%  0.50%  3.25%  8/1/2025   1,492,462   1,495,340   1,488,492 
Buckeye Partners, L.P. Utilities: Oil & Gas Buckeye Partners T/L (1/21) Loan 1M USD LIBOR+  2.25%  0.00%  2.37%  11/1/2026   1,989,987   1,975,617   1,987,182 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan Loan 1M USD LIBOR+  6.25%  0.00%  6.37%  11/18/2024   2,230,357   2,160,253   2,255,449 
Cable & Wireless Communications Limited Telecommunications Term Loan B-5 Loan 1M USD LIBOR+  2.25%  0.00%  2.36%  1/31/2028   2,000,000   2,000,000   1,988,220 
Callaway Golf Company Retail Term Loan B Loan 1M USD LIBOR+  4.50%  0.00%  4.61%  1/4/2026   690,000   679,310   692,298 
Cardtronics Inc Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  4.00%  1.00%  5.00%  6/29/2027   1,494,994   1,489,184   1,495,936 
CareerBuilder, LLC Services: Business Term Loan Loan 3M USD LIBOR+  6.75%  1.00%  7.75%  7/31/2023   3,393,388   3,230,834   3,230,505 
CareStream Health, Inc. Healthcare & Pharmaceuticals Term Loan Loan 6M USD LIBOR+  6.75%  1.00%  7.75%  5/8/2023   2,306,786   2,302,501   2,298,136 
Casa Systems, Inc Telecommunications Term Loan Loan 6M USD LIBOR+  4.00%  1.00%  5.00%  12/20/2023   1,440,000   1,433,828   1,435,205 
Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan 3M USD LIBOR+  3.75%  0.00%  4.00%  1/27/2027   496,875   494,809   493,059 
Catalent Pharma Solutions, Inc. Healthcare & Pharmaceuticals Term Loan B3 (2/21) Loan 1M USD LIBOR+  2.00%  0.50%  2.50%  5/18/2026   500,000   500,000   500,780 
CBI BUYER, INC. Consumer goods: Durable New Trojan Parent (Careismatic/CBI Buyer) 1st Lien Loan 1M USD LIBOR+  3.25%  0.50%  3.75%  1/6/2028   1,000,000   997,597   1,000,630 
CCI Buyer, Inc Telecommunications Term Loan Loan 3M USD LIBOR+  4.00%  0.75%  4.75%  12/17/2027   250,000   247,558   251,720 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+  5.50%  0.00%  5.61%  9/25/2025   2,450,000   2,432,841   2,417,856 
Cengage Learning Acquisitions, Inc. Media: Advertising, Printing & Publishing Term Loan Loan 6M USD LIBOR+  4.25%  1.00%  5.25%  6/7/2023   1,432,459   1,424,074   1,410,370 
CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan 1M USD LIBOR+  2.25%  0.00%  2.36%  3/15/2027   2,970,000   2,967,083   2,957,170 
Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  1.87%  4/3/2025   989,822   940,018   979,617 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Citadel Securities T/L B (01/21) Loan 1M USD LIBOR+  2.50%  0.00%  2.61%  2/27/2028   5,000,000   4,993,750   4,970,300 
Clarios Global LP Automotive Term Loan B Loan 1M USD LIBOR+  3.50%  0.00%  3.61%  4/30/2026   1,454,464   1,442,855   1,455,381 
Issuer Name Industry Asset
Name		 Asset  
Type		  Reference Rate/Spread LIBOR Floor  Current Rate
(All In)		  Maturity Date  Principal/ Number of Shares  Cost  Fair Value 
Anchor Packaging, LLC Containers, Packaging & Glass Term Loan B  Loan  1M USD  LIBOR+  4.00%  0.00%  4.11%  7/10/2026   997,468   987,853   999,962 
APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B  Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  10/1/2026   990,000   985,758   990,000 
APLP Holdings Limited Partnership Energy: Electricity APLP Holdings T/L B (01/20)  Loan  1M USD LIBOR+  2.50%  1.00%  3.50%  4/14/2025   1,618,421   1,618,421   1,617,207 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B  Loan  1M USD LIBOR+  2.75%  0.00%  2.86%  5/15/2026   3,000,000   2,960,051   2,925,000 
AppLovin Corporation High Tech Industries Applovin T/L B  Loan  1M USD LIBOR+  3.50%  0.00%  3.61%  8/15/2025   1,000,000   1,000,000   998,100 
Aramark Corporation Services: Consumer Term Loan  Loan  1M USD LIBOR+  1.75%  0.00%  1.86%  1/15/2027   2,481,250   2,401,701   2,454,105 
Arctic Glacier U.S.A., Inc. Beverage, Food & Tobacco Term Loan (3/18)  Loan  3M USD LIBOR+  3.50%  1.00%  4.50%  3/20/2024   3,350,967   3,337,028   3,140,124 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18)  Loan  1M USD LIBOR+  4.25%  0.00%  4.36%  10/1/2025   1,960,000   1,956,623   1,954,492 
ARISTOCRAT LEISURE LIMITED Hotel, Gaming & Leisure Term Loan (5/20)  Loan  2M USD LIBOR+  3.75%  1.00%  4.75%  10/19/2024   995,000   978,205   1,000,184 
ASG Technologies Group, Inc High Tech Industries Term Loan  Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  7/31/2024   461,401   460,194   454,480 
ASP MSG Acquisition Co., Inc Beverage, Food & Tobacco Term Loan (2/17)  Loan  1M USD LIBOR+  4.00%  1.00%  5.00%  8/16/2023   3,830,991   3,793,847   3,835,779 
Aspen Dental Management, Inc. Services: Consumer Term Loan B  Loan  1M USD LIBOR+  2.75%  0.00%  2.86%  4/30/2025   1,950,276   1,944,024   1,926,872 
Asplundh Tree Expert, LLC Services: Business Term Loan  Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  9/4/2027   997,500   992,854   998,128 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B6  Loan  1M USD LIBOR+  3.00%  0.00%  3.11%  11/3/2023   328,929   327,483   328,244 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8  Loan  1M USD LIBOR+  3.25%  0.00%  3.36%  12/18/2026   1,525,365   1,515,790   1,520,362 
Avast Software S.R.O. (Sybil Finance) High Tech Industries Term Loan B (4/18)  Loan  3M USD LIBOR+  2.25%  1.00%  3.25%  9/29/2023   650,351   642,686   650,351 
Avaya, Inc. Telecommunications Term Loan B1  Loan  1M USD LIBOR+  4.25%  0.00%  4.36%  12/15/2027   1,755,766   1,745,975   1,760,437 
Avaya, Inc. Telecommunications Avaya T/L B-2  Loan  1M USD LIBOR+  4.00%  0.00%  4.11%  12/15/2027   1,000,000   1,000,000   1,001,250 
Avison Young (Canada) Inc Services: Business Term Loan  Loan  3M USD LIBOR+  5.00%  0.00%  5.19%  1/31/2026   3,441,108   3,392,968   3,441,108 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3  Loan  1M USD LIBOR+  1.75%  0.75%  2.50%  1/15/2025   1,000,000   869,301   996,390 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5  Loan  1M USD LIBOR+  2.50%  0.75%  3.25%  12/20/2027   500,000   495,171   500,625 
Azalea TopCo, Inc. Services: Business Incremental Term Loan  Loan  3M USD LIBOR+  4.00%  0.75%  4.75%  7/24/2026   500,000   495,287   501,250 
B&G Foods, Inc. Beverage, Food & Tobacco Term Loan  Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  10/10/2026   706,458   700,750   706,960 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4  Loan  1M USD LIBOR+  1.75%  0.00%  1.86%  11/19/2026   1,485,000   1,447,423   1,469,912 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan  Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  10/14/2027   997,500   983,184   1,002,488 
BALL METALPACK, LLC (PE Spray) Containers, Packaging & Glass Term Loan  Loan  3M USD LIBOR+  4.50%  0.00%  4.69%  7/25/2025   3,904,887   3,891,579   3,887,823 
Bass Pro Group, LLC Retail Term Loan B (02/21)  Loan  1M USD LIBOR+  4.25%  0.75%  5.00%  2/26/2028   1,000,000   995,000   1,000,780 
Berry Plastics Holding Corporation Chemicals, Plastics, & Rubber Term Loan Y  Loan  1M USD LIBOR+  2.00%  0.00%  2.12%  7/1/2026   4,937,374   4,932,962   4,932,980 

 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  5.00%  1.00%  6.00%  8/9/2026   997,475   972,272   999,968 
CNT Holdings I Corp Retail Term Loan Loan 6M USD LIBOR+  3.75%  0.75%  4.50%  11/8/2027   500,000   497,627   501,955 
Cole Haan Consumer goods: Non-durable Term Loan B Loan 3M USD LIBOR+  5.50%  0.00%  5.69%  2/7/2025   950,000   942,246   874,000 
Compass Power Generation, LLC Utilities: Electric Term Loan B (08/18) Loan 1M USD LIBOR+  3.50%  1.00%  4.50%  12/20/2024   1,802,012   1,798,648   1,796,390 
Concordia Healthcare Corp. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+  5.50%  1.00%  6.50%  9/6/2024   1,159,370   1,118,148   1,156,472 
Connect Finco SARL Telecommunications Term Loan (1/21) Loan 1M USD LIBOR+  3.50%  1.00%  4.50%  12/11/2026   2,977,500   2,831,053   2,987,058 
Consolidated Communications, Inc. Telecommunications Term Loan B (10/20) Loan 1M USD LIBOR+  4.75%  1.00%  5.75%  10/2/2027   997,500   983,260   1,002,328 
CoreCivic, Inc. Banking, Finance, Insurance & Real Estate Term Loan (12/19) Loan 1M USD LIBOR+  4.50%  1.00%  5.50%  12/18/2024   3,454,545   3,404,660   3,340,822 
CPI Card Group Banking, Finance, Insurance & Real Estate Term Loan B (1st Lien) Loan 3M USD LIBOR+  4.50%  1.00%  5.50%  8/17/2022   1,436,782   1,431,179   1,422,414 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+  2.25%  0.00%  2.36%  1/15/2026   490,000   489,175   486,849 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B (03/17) Loan 1M USD LIBOR+  2.25%  0.00%  2.36%  7/15/2025   1,954,315   1,936,120   1,941,925 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan 1M USD LIBOR+  2.50%  0.00%  2.61%  4/15/2027   495,000   495,000   492,911 
CTS Midco, LLC High Tech Industries Term Loan B Loan 3M USD LIBOR+  6.00%  1.00%  7.00%  11/2/2027   2,000,000   1,942,014   2,002,500 
Daseke Inc Transportation: Cargo Replacement Term Loan Loan 1M USD LIBOR+  5.00%  1.00%  6.00%  2/27/2024   1,935,738   1,928,854   1,939,978 
DCert Buyer, Inc. High Tech Industries DCert Buyer T/L (Digicert) Loan 1M USD LIBOR+  4.00%  0.00%  4.11%  10/16/2026   1,500,000   1,500,000   1,500,540 
Dealer Tire, LLC Automotive Dealer Tire T/L B-1 Loan 1M USD LIBOR+  4.25%  0.00%  4.36%  12/12/2025   2,970,000   2,963,784   2,966,288 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B Loan 1M USD LIBOR+  2.25%  0.00%  2.36%  3/31/2025   6,380,682   6,326,939   6,247,773 
Dell International LLC High Tech Industries Term Loan B-2 Loan 1M USD LIBOR+  1.75%  0.75%  2.00%  9/19/2025   2,530,374   2,528,058   2,537,763 
Delta 2 (Lux) S.a.r.l. Hotel, Gaming & Leisure Term Loan B Loan 1M USD LIBOR+  2.50%  1.00%  3.50%  2/1/2024   818,289   817,549   813,175 
Delta Air Lines, Inc. Transportation: Consumer Term Loan B (4/20) Loan 1M USD LIBOR+  4.75%  1.00%  5.75%  4/29/2023   2,243,737   2,240,713   2,257,761 
DHX Media Ltd. Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+  4.25%  1.00%  5.25%  12/29/2023   279,282   278,315   278,584 
Diamond Sports Group, LLC Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+  3.25%  0.00%  3.37%  8/24/2026   3,443,844   2,912,847   2,582,883 
Digital Room LLC Media: Advertising, Printing & Publishing Term Loan Loan 6M USD LIBOR+  5.00%  0.00%  5.27%  5/21/2026   2,955,000   2,925,480   2,910,675 
Dole Food Company Inc. Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+  2.75%  1.00%  3.75%  4/6/2024   456,250   455,172   456,410 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate DRW Holdings T/L (2/21) Loan 1M USD LIBOR+  3.75%  0.00%  3.87%  2/24/2028   552,519   549,756   551,138 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  4.25%  0.00%  4.36%  11/29/2026   5,947,481   5,897,811   5,932,612 
DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan 1M USD LIBOR+  2.75%  0.00%  2.86%  8/21/2025   3,915,462   3,901,786   3,886,801 
EagleTree - Carbride Acquisition (Corsair Components) Consumer goods: Durable Term Loan Loan 1M USD LIBOR+  3.75%  1.00%  4.75%  8/28/2024   2,868,047   2,867,816   2,868,047 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (06/18) Loan 1M USD LIBOR+  3.00%  0.00%  3.11%  7/21/2025   1,225,000   1,220,875   1,214,502 
Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan 1M USD LIBOR+  4.25%  0.00%  4.36%  6/26/2025   1,950,000   1,947,116   1,903,083 
ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan 1M USD LIBOR+  6.50%  0.00%  6.61%  12/14/2025   2,558,602   2,457,436   2,564,999 
Issuer Name Industry Asset
Name		 Asset  
Type		  Reference Rate/Spread LIBOR Floor  Current Rate
(All In)		  Maturity Date  Principal/ Number of Shares  Cost  Fair Value 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B  Loan  1M USD  LIBOR+  2.25%  0.00%  2.36%  4/23/2026   1,000,000   992,500   985,000 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Blackstone Mortgage T/L B-2  Loan  1M USD LIBOR+  4.75%  1.00%  5.75%  4/23/2026   1,494,994   1,484,017   1,498,731 
Blount International, Inc. Forest Products & Paper Term Loan B (09/18)  Loan  1M USD LIBOR+  3.75%  1.00%  4.75%  4/12/2023   3,418,806   3,416,907   3,422,225 
Blucora, Inc. Services: Consumer Term Loan (11/17)  Loan  3M USD LIBOR+  4.00%  1.00%  5.00%  5/22/2024   2,451,227   2,443,549   2,454,291 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20)  Loan  1M USD LIBOR+  2.00%  0.00%  2.12%  5/24/2027   1,485,050   1,473,875   1,475,620 
Boxer Parent Company, Inc. High Tech Industries Boxer Parent Company T/L (BMC Software) (2/21)  Loan  1M USD LIBOR+  3.75%  0.00%  3.90%  10/2/2025   528,897   528,897   528,829 
Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals Term Loan  Loan  3M USD LIBOR+  4.25%  0.00%  4.49%  9/5/2025   977,500   974,177   975,868 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Phoenix Guarantor (Brightspring) T/L (02/21)  Loan  6M USD LIBOR+  3.50%  0.00%  3.76%  3/5/2026   1,000,000   1,000,000   1,000,710 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3  Loan  1M USD LIBOR+  3.25%  0.00%  3.36%  1/22/2027   2,009,429   2,007,872   1,996,207 
Brookfield WEC Holdings Inc. Energy: Electricity Brookfield WEC T/L (Westinghouse) (1/21)  Loan  1M USD LIBOR+  2.75%  0.50%  3.25%  8/1/2025   1,492,462   1,495,340   1,488,492 
Buckeye Partners, L.P. Utilities: Oil & Gas Buckeye Partners T/L (1/21)  Loan  1M USD LIBOR+  2.25%  0.00%  2.37%  11/1/2026   1,989,987   1,975,617   1,987,182 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan  Loan  1M USD LIBOR+  6.25%  0.00%  6.37%  11/18/2024   2,230,357   2,160,253   2,255,449 
Cable & Wireless Communications Limited Telecommunications Term Loan B-5  Loan  1M USD LIBOR+  2.25%  0.00%  2.36%  1/31/2028   2,000,000   2,000,000   1,988,220 
Callaway Golf Company Retail Term Loan B  Loan  1M USD LIBOR+  4.50%  0.00%  4.61%  1/4/2026   690,000   679,310   692,298 
Cardtronics Inc Banking, Finance, Insurance & Real Estate Term Loan  Loan  1M USD LIBOR+  4.00%  1.00%  5.00%  6/29/2027   1,494,994   1,489,184   1,495,936 
CareerBuilder, LLC Services: Business Term Loan  Loan  3M USD LIBOR+  6.75%  1.00%  7.75%  7/31/2023   3,393,388   3,230,834   3,230,505 
CareStream Health, Inc. Healthcare & Pharmaceuticals Term Loan  Loan  6M USD LIBOR+  6.75%  1.00%  7.75%  5/8/2023   2,306,786   2,302,501   2,298,136 
Casa Systems, Inc Telecommunications Term Loan  Loan  6M USD LIBOR+  4.00%  1.00%  5.00%  12/20/2023   1,440,000   1,433,828   1,435,205 
Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD)  Loan  3M USD LIBOR+  3.75%  0.00%  4.00%  1/27/2027   496,875   494,809   493,059 
Catalent Pharma Solutions, Inc. Healthcare & Pharmaceuticals Term Loan B3 (2/21)  Loan  1M USD LIBOR+  2.00%  0.50%  2.50%  5/18/2026   500,000   500,000   500,780 
CBI BUYER, INC. Consumer goods: Durable New Trojan Parent (Careismatic/CBI Buyer) 1st Lien  Loan  1M USD LIBOR+  3.25%  0.50%  3.75%  1/6/2028   1,000,000   997,597   1,000,630 
CCI Buyer, Inc Telecommunications Term Loan  Loan  3M USD LIBOR+  4.00%  0.75%  4.75%  12/17/2027   250,000   247,558   251,720 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan  Loan  1M USD LIBOR+  5.50%  0.00%  5.61%  9/25/2025   2,450,000   2,432,841   2,417,856 
Cengage Learning Acquisitions, Inc. Media: Advertising, Printing & Publishing Term Loan  Loan  6M USD LIBOR+  4.25%  1.00%  5.25%  6/7/2023   1,432,459   1,424,074   1,410,370 
CenturyLink, Inc. Telecommunications Term Loan B (1/20)  Loan  1M USD LIBOR+  2.25%  0.00%  2.36%  3/15/2027   2,970,000   2,967,083   2,957,170 
Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan  Loan  1M USD LIBOR+  1.75%  0.00%  1.87%  4/3/2025   989,822   940,018   979,617 

 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value 
Encapsys, LLC (Cypress Performance Group) Chemicals, Plastics, & Rubber Term Loan B2 Loan 1M USD LIBOR+  3.25%  1.00%  4.25%  11/7/2024   492,284   488,655   492,284 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan B (4/17) Loan 3M USD LIBOR+  4.25%  0.75%  5.00%  4/29/2024   3,896,646   3,879,939   3,869,057 
Endure Digital, Inc. High Tech Industries Endurance International T/L B Loan 1M USD LIBOR+  3.50%  0.75%  4.25%  1/27/2028   2,500,000   2,487,500   2,481,250 
Ensemble RCM LLC Services: Business Term Loan Loan 3M USD LIBOR+  3.75%  0.00%  3.96%  7/24/2026   3,000,000   2,992,500   3,004,230 
Enterprise Merger Sub Inc. Healthcare & Pharmaceuticals Term Loan B (06/18) Loan 1M USD LIBOR+  3.75%  0.00%  3.86%  10/10/2025   4,900,000   4,891,890   4,204,200 
EVERI Payments Inc. Hotel, Gaming & Leisure Everi Payments T/L B Loan 1M USD LIBOR+  2.75%  0.75%  3.50%  5/9/2024   3,000,000   3,000,000   2,988,120 
EyeCare Partners, LLC Healthcare & Pharmaceuticals EyeCare Partners T/L B Loan 1M USD LIBOR+  3.75%  0.00%  3.86%  2/18/2027   1,987,838   1,986,442   1,956,032 
Finco I LLC Banking, Finance, Insurance & Real Estate FinCo T/L B (9/20) (Fortress Investment) Loan 1M USD LIBOR+  2.50%  0.00%  2.61%  6/27/2025   1,822,272   1,815,715   1,821,142 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan 3M USD LIBOR+  2.50%  0.00%  2.75%  2/1/2027   5,395,500   5,375,893   5,378,990 
Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan 1M USD LIBOR+  3.25%  1.00%  4.25%  4/18/2025   1,330,058   1,324,204   1,196,813 
Flex Acquisition Company (Hilex Poly/Novolex) T/L (02/21) Containers, Packaging & Glass Term Loan Loan 3M USD LIBOR+  4.00%  0.50%  4.50%  3/2/2028   1,000,000   995,000   997,810 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Focus Financial T/L (1/20) Loan 1M USD LIBOR+  2.00%  0.00%  2.11%  7/3/2024   500,000   499,435   497,815 
Franchise Group, Inc. Services: Consumer Franchise Group First Out T/L Loan 6M USD LIBOR+  4.75%  0.75%  5.50%  10/25/2026   1,000,000   990,000   1,000,000 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  2.25%  0.00%  2.38%  8/1/2025   4,398,742   4,374,564   4,382,247 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan 1M USD LIBOR+  2.25%  0.00%  2.36%  1/29/2027   1,990,000   1,985,937   1,971,453 
Fusion Telecommunications International Inc. Telecommunications Take Back 2nd Out Term Loan Loan 6M USD LIBOR+  1.00%  2.00%  3.00%  7/14/2025   813,105   795,920   412,651 
Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan 3M USD LIBOR+  3.00%  0.50%  3.50%  12/31/2027   2,000,000   1,980,103   1,995,000 
General Nutrition Centers, Inc. (b) Retail Term Loan B2 Loan Prime+  7.75%  0.75%  11.00%  3/4/2021   389,896   389,896   292,422 
Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan 3M USD LIBOR+  2.00%  0.00%  2.25%  12/30/2026   1,488,750   1,482,600   1,489,986 
GEO Group, Inc., The Banking, Finance, Insurance & Real Estate Term Loan Refinance Loan 1M USD LIBOR+  2.00%  0.75%  2.75%  3/22/2024   3,963,971   3,665,551   3,609,710 
GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.50%  0.00%  2.61%  8/27/2025   3,969,542   3,201,121   3,862,603 
GI Chill Acquisition LLC Services: Business Term Loan Loan 3M USD LIBOR+  4.00%  0.00%  4.25%  8/1/2025   2,443,750   2,435,372   2,448,344 
Gigamon Inc. Services: Business Term Loan B Loan 6M USD LIBOR+  3.75%  0.75%  4.50%  12/27/2024   2,930,400   2,913,040   2,930,400 
Global Business Travel (GBT) III Inc. Hotel, Gaming & Leisure Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  2.61%  8/13/2025   4,398,750   4,397,949   4,215,454 
Global Tel*Link Corporation Telecommunications Term Loan B Loan 1M USD LIBOR+  4.25%  0.00%  4.36%  11/29/2025   5,000,167   4,764,345   4,675,956 
Go Wireless Holdings, Inc. Telecommunications Term Loan Loan 1M USD LIBOR+  6.50%  1.00%  7.50%  12/22/2024   3,024,675   2,992,914   3,017,114 
Goodyear Tire & Rubber Company, The Chemicals, Plastics, & Rubber Second Lien Term Loan Loan 1M USD LIBOR+  2.00%  0.00%  2.12%  3/3/2025   3,000,000   2,933,783   2,953,740 
Graham Packaging T/L (2/21) Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+  3.75%  0.75%  4.50%  8/4/2027   979,661   972,912   980,660 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  3.25%  0.00%  3.36%  4/12/2024   3,419,615   3,393,171   3,398,243 
Issuer Name Industry Asset
Name		 Asset  
Type		  Reference Rate/Spread LIBOR Floor  Current Rate
(All In)		  Maturity Date  Principal/ Number of Shares  Cost  Fair Value 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Citadel Securities T/L B (01/21)  Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  2/27/2028   5,000,000   4,993,750   4,970,300 
Clarios Global LP Automotive Term Loan B  Loan  1M USD LIBOR+  3.50%  0.00%  3.61%  4/30/2026   1,454,464   1,442,855   1,455,381 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B  Loan  1M USD LIBOR+  5.00%  1.00%  6.00%  8/9/2026   997,475   972,272   999,968 
CNT Holdings I Corp Retail Term Loan  Loan  6M USD LIBOR+  3.75%  0.75%  4.50%  11/8/2027   500,000   497,627   501,955 
Cole Haan Consumer goods: Non-durable Term Loan B  Loan  3M USD LIBOR+  5.50%  0.00%  5.69%  2/7/2025   950,000   942,246   874,000 
Compass Power Generation, LLC Utilities: Electric Term Loan B (08/18)  Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  12/20/2024   1,802,012   1,798,648   1,796,390 
Concordia Healthcare Corp. Healthcare & Pharmaceuticals Term Loan  Loan  1M USD LIBOR+  5.50%  1.00%  6.50%  9/6/2024   1,159,370   1,118,148   1,156,472 
Connect Finco SARL Telecommunications Term Loan (1/21)  Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  12/11/2026   2,977,500   2,831,053   2,987,058 
Consolidated Communications, Inc. Telecommunications Term Loan B (10/20)  Loan  1M USD LIBOR+  4.75%  1.00%  5.75%  10/2/2027   997,500   983,260   1,002,328 
CoreCivic, Inc. Banking, Finance, Insurance & Real Estate Term Loan (12/19)  Loan  1M USD LIBOR+  4.50%  1.00%  5.50%  12/18/2024   3,454,545   3,404,660   3,340,822 
CPI Card Group Banking, Finance, Insurance & Real Estate Term Loan B (1st Lien)  Loan  3M USD LIBOR+  4.50%  1.00%  5.50%  8/17/2022   1,436,782   1,431,179   1,422,414 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B  Loan  1M USD LIBOR+  2.25%  0.00%  2.36%  1/15/2026   490,000   489,175   486,849 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B (03/17)  Loan  1M USD LIBOR+  2.25%  0.00%  2.36%  7/15/2025   1,954,315   1,936,120   1,941,925 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5  Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  4/15/2027   495,000   495,000   492,911 
CTS Midco, LLC High Tech Industries Term Loan B  Loan  3M USD LIBOR+  6.00%  1.00%  7.00%  11/2/2027   2,000,000   1,942,014   2,002,500 
Daseke Inc Transportation: Cargo Replacement Term Loan  Loan  1M USD LIBOR+  5.00%  1.00%  6.00%  2/27/2024   1,935,738   1,928,854   1,939,978 
DCert Buyer, Inc. High Tech Industries DCert Buyer T/L (Digicert)  Loan  1M USD LIBOR+  4.00%  0.00%  4.11%  10/16/2026   1,500,000   1,500,000   1,500,540 
Dealer Tire, LLC Automotive Dealer Tire T/L B-1  Loan  1M USD LIBOR+  4.25%  0.00%  4.36%  12/12/2025   2,970,000   2,963,784   2,966,288 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B  Loan  1M USD LIBOR+  2.25%  0.00%  2.36%  3/31/2025   6,380,682   6,326,939   6,247,773 
Dell International LLC High Tech Industries Term Loan B-2  Loan  1M USD LIBOR+  1.75%  0.75%  2.00%  9/19/2025   2,530,374   2,528,058   2,537,763 
Delta 2 (Lux) S.a.r.l. Hotel, Gaming & Leisure Term Loan B  Loan  1M USD LIBOR+  2.50%  1.00%  3.50%  2/1/2024   818,289   817,549   813,175 
Delta Air Lines, Inc. Transportation: Consumer Term Loan B (4/20)  Loan  1M USD LIBOR+  4.75%  1.00%  5.75%  4/29/2023   2,243,737   2,240,713   2,257,761 
DHX Media Ltd. Media: Broadcasting & Subscription Term Loan  Loan  1M USD LIBOR+  4.25%  1.00%  5.25%  12/29/2023   279,282   278,315   278,584 
Diamond Sports Group, LLC Media: Broadcasting & Subscription Term Loan  Loan  1M USD LIBOR+  3.25%  0.00%  3.37%  8/24/2026   3,443,844   2,912,847   2,582,883 
Digital Room LLC Media: Advertising, Printing & Publishing Term Loan  Loan  6M USD LIBOR+  5.00%  0.00%  5.27%  5/21/2026   2,955,000   2,925,480   2,910,675 
Dole Food Company Inc. Beverage, Food & Tobacco Term Loan B  Loan  1M USD LIBOR+  2.75%  1.00%  3.75%  4/6/2024   456,250   455,172   456,410 

 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value 
Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.75%  1.00%  3.75%  3/31/2025   2,399,991   2,398,303   2,395,791 
Guidehouse LLP (fka PricewaterhouseCoopers) Aerospace & Defense Term Loan Loan 1M USD LIBOR+  4.00%  0.00%  4.11%  5/1/2025   4,924,683   4,903,634   4,951,572 
Harbor Freight Tools USA, Inc. Retail Term Loan B (10/20) Loan 1M USD LIBOR+  3.25%  0.75%  4.00%  10/20/2027   2,992,500   2,967,649   3,004,979 
Harland Clarke Holdings Corp. Media: Advertising, Printing & Publishing Term Loan Loan 3M USD LIBOR+  4.75%  1.00%  5.75%  11/3/2023   1,612,899   1,607,974   1,536,738 
Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan 1M USD LIBOR+  3.75%  1.00%  4.75%  6/3/2024   244,627   244,418   243,418 
Hillman Group Inc. (The) (New) Consumer goods: Durable Hillman Group T/L B-1 (2/21) Loan 6M USD LIBOR+  2.75%  0.50%  3.25%  2/23/2028   3,523,207   3,514,399   3,523,207 
Hillman Group Inc. (The) (New) Consumer goods: Durable Hillman Group T/L B-2 (2/21) Loan 6M USD LIBOR+  2.75%  0.50%  2.99%  2/23/2028   632,911   631,329   632,911 
Hillman Group Inc. (The) (New)(a) Consumer goods: Durable Unfunded Commitment Loan 3M USD LIBOR+  2.75%  0.50%  0.00%  2/23/2028   -   (2,110)  - 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan 1M USD LIBOR+  2.50%  0.00%  2.61%  8/18/2025   3,910,000   3,897,913   3,912,111 
Holley Purchaser, Inc Automotive Term Loan B Loan 3M USD LIBOR+  5.00%  0.00%  5.21%  10/24/2025   2,450,000   2,432,788   2,423,981 
Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 3M USD LIBOR+  3.25%  0.75%  4.00%  11/12/2027   1,692,335   1,686,025   1,695,212 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan B (01/20) Loan 1M USD LIBOR+  3.00%  0.00%  3.11%  2/18/2027   5,940,000   5,920,701   5,925,150 
Idera, Inc. High Tech Industries Idera T/L (1/21) Loan 1M USD LIBOR+  3.75%  0.75%  4.50%  6/28/2028   1,000,000   997,500   1,000,000 
Idera, Inc. High Tech Industries Term Loan B Loan 6M USD LIBOR+  4.00%  1.00%  5.00%  6/27/2024   3,896,805   3,886,520   3,896,805 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber INEOS US Petrochem T/L (INEOS Quattro) Loan 1M USD LIBOR+  2.75%  0.50%  3.25%  1/20/2026   1,000,000   995,073   1,003,750 
INFINITE BIDCO LLC Wholesale Infinite Bidco T/L Loan 1M USD LIBOR+  3.75%  0.75%  4.50%  2/22/2028   1,500,000   1,496,250   1,500,000 
Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan 3M USD LIBOR+  4.00%  1.00%  5.00%  5/1/2024   3,421,586   3,360,370   3,400,920 
Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan 1M USD LIBOR+  3.50%  0.00%  3.61%  2/4/2027   496,250   494,123   498,424 
Intermediate Dutch Holdings Services: Business Nielsen Consumer T/L B Loan 1M USD LIBOR+  4.00%  0.00%  4.13%  2/3/2028   250,000   248,750   250,313 
Isagenix International, LLC Beverage, Food & Tobacco Term Loan Loan 3M USD LIBOR+  5.75%  1.00%  6.75%  6/14/2025   2,622,582   2,586,650   1,652,227 
Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+  3.50%  0.00%  3.62%  3/14/2025   957,262   954,285   944,100 
J Jill Group, Inc Retail Priming Term Loan Loan 6M USD LIBOR+  5.00%  1.00%  6.00%  5/8/2024   1,779,081   1,776,970   1,138,612 
Jane Street Group Banking, Finance, Insurance & Real Estate Jane Street Group T/L (1/21) Loan 1M USD LIBOR+  2.75%  0.00%  2.86%  1/31/2028   2,500,000   2,496,997   2,491,975 
Jefferies Finance LLC / JFIN Co-Issuer Corp Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  3.00%  0.00%  3.13%  6/3/2026   3,796,822   3,781,950   3,789,380 
Journey Personal Care Corp. Consumer goods: Non-durable Journey Personal Care T/L B (Domtar) Loan 6M USD LIBOR+  4.25%  0.75%  5.00%  2/19/2028   1,000,000   995,000   1,002,500 
JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+  5.50%  1.00%  6.50%  11/15/2025   4,423,877   4,386,340   4,154,021 
KAR Auction Services, Inc. Automotive Term Loan B (09/19) Loan 1M USD LIBOR+  2.25%  0.00%  2.44%  9/19/2026   246,875   246,391   243,172 
Kindred Healthcare, Inc. Healthcare & Pharmaceuticals Term Loan (6/18) Loan 1M USD LIBOR+  4.50%  0.00%  4.63%  7/2/2025   1,979,747   1,962,749   1,982,222 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Klockner Pentaplast T/L (Kleopatra) Loan 1M USD LIBOR+  4.75%  0.50%  5.25%  2/4/2026   1,500,000   1,492,500   1,500,945 
Kodiak BP, LLC Construction & Building Term Loan Loan 1M USD LIBOR+  3.25%  0.75%  4.00%  2/26/2028   500,000   497,500   499,375 
Issuer Name Industry Asset
Name		 Asset  
Type		  Reference Rate/Spread LIBOR Floor  Current Rate
(All In)		  Maturity Date  Principal/ Number of Shares  Cost  Fair Value 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate DRW Holdings T/L (2/21)  Loan  1M USD  LIBOR+  3.75%  0.00%  3.87%  2/24/2028   552,519   549,756   551,138 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan B  Loan  1M USD LIBOR+  4.25%  0.00%  4.36%  11/29/2026   5,947,481   5,897,811   5,932,612 
DTZ U.S. Borrower, LLC Construction & Building Term Loan  Loan  1M USD LIBOR+  2.75%  0.00%  2.86%  8/21/2025   3,915,462   3,901,786   3,886,801 
EagleTree - Carbride Acquisition (Corsair Components) Consumer goods: Durable Term Loan  Loan  1M USD LIBOR+  3.75%  1.00%  4.75%  8/28/2024   2,868,047   2,867,816   2,868,047 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (06/18)  Loan  1M USD LIBOR+  3.00%  0.00%  3.11%  7/21/2025   1,225,000   1,220,875   1,214,502 
Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18)  Loan  1M USD LIBOR+  4.25%  0.00%  4.36%  6/26/2025   1,950,000   1,947,116   1,903,083 
ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18)  Loan  1M USD LIBOR+  6.50%  0.00%  6.61%  12/14/2025   2,558,602   2,457,436   2,564,999 
Encapsys, LLC (Cypress Performance Group) Chemicals, Plastics, & Rubber Term Loan B2  Loan  1M USD LIBOR+  3.25%  1.00%  4.25%  11/7/2024   492,284   488,655   492,284 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan B (4/17)  Loan  3M USD LIBOR+  4.25%  0.75%  5.00%  4/29/2024   3,896,646   3,879,939   3,869,057 
Endure Digital, Inc. High Tech Industries Endurance International T/L B  Loan  1M USD LIBOR+  3.50%  0.75%  4.25%  1/27/2028   2,500,000   2,487,500   2,481,250 
Ensemble RCM LLC Services: Business Term Loan  Loan  3M USD LIBOR+  3.75%  0.00%  3.96%  7/24/2026   3,000,000   2,992,500   3,004,230 
Enterprise Merger Sub Inc. Healthcare & Pharmaceuticals Term Loan B (06/18)  Loan  1M USD LIBOR+  3.75%  0.00%  3.86%  10/10/2025   4,900,000   4,891,890   4,204,200 
EVERI Payments Inc. Hotel, Gaming & Leisure Everi Payments T/L B  Loan  1M USD LIBOR+  2.75%  0.75%  3.50%  5/9/2024   3,000,000   3,000,000   2,988,120 
EyeCare Partners, LLC Healthcare & Pharmaceuticals EyeCare Partners T/L B  Loan  1M USD LIBOR+  3.75%  0.00%  3.86%  2/18/2027   1,987,838   1,986,442   1,956,032 
Finco I LLC Banking, Finance, Insurance & Real Estate FinCo T/L B (9/20) (Fortress Investment)  Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  6/27/2025   1,822,272   1,815,715   1,821,142 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan  Loan  3M USD LIBOR+  2.50%  0.00%  2.75%  2/1/2027   5,395,500   5,375,893   5,378,990 
Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18)  Loan  1M USD LIBOR+  3.25%  1.00%  4.25%  4/18/2025   1,330,058   1,324,204   1,196,813 
Flex Acquisition Company (Hilex Poly/Novolex) T/L (02/21) Containers, Packaging & Glass Term Loan  Loan  3M USD LIBOR+  4.00%  0.50%  4.50%  3/2/2028   1,000,000   995,000   997,810 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Focus Financial T/L (1/20)  Loan  1M USD LIBOR+  2.00%  0.00%  2.11%  7/3/2024   500,000   499,435   497,815 
Franchise Group, Inc. Services: Consumer Franchise Group First Out T/L  Loan  6M USD LIBOR+  4.75%  0.75%  5.50%  10/25/2026   1,000,000   990,000   1,000,000 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan  Loan  1M USD LIBOR+  2.25%  0.00%  2.38%  8/1/2025   4,398,742   4,374,564   4,382,247 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2  Loan  1M USD LIBOR+  2.25%  0.00%  2.36%  1/29/2027   1,990,000   1,985,937   1,971,453 
Fusion Telecommunications International Inc. Telecommunications Take Back 2nd Out Term Loan  Loan  6M USD LIBOR+  1.00%  2.00%  3.00%  7/14/2025   813,105   795,920   412,651 
Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20)  Loan  3M USD LIBOR+  3.00%  0.50%  3.50%  12/31/2027   2,000,000   1,980,103   1,995,000 
General Nutrition Centers, Inc. (b) Retail Term Loan B2  Loan  Prime+  7.75%  0.75%  11.00%  3/4/2021   389,896   389,896   292,422 
Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19)  Loan  3M USD LIBOR+  2.00%  0.00%  2.25%  12/30/2026   1,488,750   1,482,600   1,489,986 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 3M USD LIBOR+  4.75%  1.00%  5.75%  8/4/2027   500,000   488,256   501,250 
Lakeland Tours, LLC Hotel, Gaming & Leisure 2nd Out Take Back PIK Term Loan Loan 3M USD LIBOR+  1.50%  1.25%  2.75%  9/25/2025   585,723   478,159   524,222 
Lakeland Tours, LLC Hotel, Gaming & Leisure Third Out PIK Term Loan Loan 3M USD LIBOR+  1.50%  1.25%  2.75%  9/25/2025   777,562   451,283   515,780 
Lakeland Tours, LLC Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan Fixed  8.00%  0.00%  13.25%  9/27/2027   763,381   128,938   277,359 
Lakeland Tours, LLC Hotel, Gaming & Leisure Priority Exit PIK Term Loan (9/20) Loan 3M USD LIBOR+  6.00%  1.25%  7.25%  9/25/2023   306,588   292,181   306,076 
Lealand Finance Company B.V. Energy: Oil & Gas Exit Term Loan Loan 1M USD LIBOR+  1.00%  0.00%  1.11%  6/30/2025   324,682   324,682   209,258 
Learfield Communications, Inc Media: Advertising, Printing & Publishing Initial Term Loan (A-L Parent) Loan 1M USD LIBOR+  3.25%  1.00%  4.25%  12/1/2023   480,000   478,959   439,296 
Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan 1M USD LIBOR+  3.50%  1.00%  4.50%  2/28/2025   2,905,639   2,876,036   2,878,413 
Liftoff Mobile, Inc. Media: Advertising, Printing & Publishing Liftoff Mobile T/L Loan 1M USD LIBOR+  3.50%  0.75%  4.25%  2/17/2028   1,000,000   995,000   997,500 
Lightstone Generation LLC Energy: Electricity Term Loan B Loan 3M USD LIBOR+  3.75%  1.00%  4.75%  1/30/2024   1,322,520   1,321,129   1,133,241 
Lightstone Generation LLC Energy: Electricity Term Loan C Loan 3M USD LIBOR+  3.75%  1.00%  4.75%  1/30/2024   74,592   74,517   63,917 
Lindblad Expeditions, Inc. Hotel, Gaming & Leisure Cayman Term Loan Loan 1M USD LIBOR+  3.50%  0.75%  4.25%  3/21/2025   98,191   98,037   90,827 
Lindblad Expeditions, Inc. Hotel, Gaming & Leisure US 2018 Term Loan Loan 1M USD LIBOR+  3.50%  0.75%  4.25%  3/21/2025   392,764   392,147   363,307 
Liquidnet Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 6M USD LIBOR+  3.25%  1.00%  4.25%  7/11/2024   1,960,766   1,957,232   1,952,237 
LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan 1M USD LIBOR+  4.75%  0.00%  4.87%  8/31/2027   4,000,000   3,927,780   3,996,680 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan 1M USD LIBOR+  1.75%  0.00%  1.87%  11/11/2026   1,232,760   1,230,271   1,224,032 
MA FinanceCo LLC High Tech Industries Term Loan B4 Loan 3M USD LIBOR+  4.25%  1.00%  5.25%  5/29/2025   2,474,961   2,466,727   2,502,804 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan 1M USD LIBOR+  1.75%  0.00%  1.86%  8/29/2025   1,317,074   1,317,074   1,296,080 
Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan 3M USD LIBOR+  1.75%  0.00%  1.95%  2/15/2027   250,000   249,476   247,735 
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  4.50%  0.00%  4.61%  2/28/2025   3,427,214   3,397,660   3,380,090 
McAfee, LLC Services: Business Term Loan B Loan 1M USD LIBOR+  3.75%  0.00%  3.86%  9/30/2024   1,928,400   1,921,750   1,932,121 
McGraw-Hill Global Education Holdings, LLC Media: Advertising, Printing & Publishing Term Loan B Loan 3M USD LIBOR+  4.75%  1.00%  5.75%  11/1/2024   2,544,391   2,364,344   2,538,666 
Meredith Corporation Media: Advertising, Printing & Publishing Term Loan B2 Loan 1M USD LIBOR+  2.50%  0.00%  2.61%  1/31/2025   578,738   577,965   575,555 
Mermaid Bidco Inc. High Tech Industries Term Loan 12/20 Loan 2M USD LIBOR+  4.25%  0.75%  5.00%  12/1/2027   500,000   497,584   501,565 
Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan 3M USD LIBOR+  2.50%  0.00%  2.75%  3/1/2026   3,944,962   3,923,644   3,942,003 
Michaels Stores, Inc. Retail Term Loan B (9/20) Loan 1M USD LIBOR+  3.50%  0.75%  4.25%  10/1/2027   2,571,414   2,565,167   2,567,557 
Midwest Physician Administrative Services LLC (Dupage Medical Group) Healthcare & Pharmaceuticals Term Loan (2/18) Loan 1M USD LIBOR+  2.75%  0.75%  3.50%  8/15/2024   961,003   958,186   960,522 
Mitchell International, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/20) Loan 1M USD LIBOR+  4.25%  0.50%  4.75%  11/29/2024   997,500   944,391   1,000,991 
Issuer Name Industry Asset
Name		 Asset  
Type		  Reference Rate/Spread LIBOR Floor  Current Rate
(All In)		  Maturity Date  Principal/ Number of Shares  Cost  Fair Value 
GEO Group, Inc., The Banking, Finance, Insurance & Real Estate Term Loan Refinance  Loan  1M USD LIBOR+  2.00%  0.75%  2.75%  3/22/2024   3,963,971   3,665,551   3,609,710 
GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B  Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  8/27/2025   3,969,542   3,201,121   3,862,603 
GI Chill Acquisition LLC Services: Business Term Loan  Loan  3M USD LIBOR+  4.00%  0.00%  4.25%  8/1/2025   2,443,750   2,435,372   2,448,344 
Gigamon Inc. Services: Business Term Loan B  Loan  6M USD LIBOR+  3.75%  0.75%  4.50%  12/27/2024   2,930,400   2,913,040   2,930,400 
Global Business Travel (GBT) III Inc. Hotel, Gaming & Leisure Term Loan  Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  8/13/2025   4,398,750   4,397,949   4,215,454 
Global Tel*Link Corporation Telecommunications Term Loan B  Loan  1M USD LIBOR+  4.25%  0.00%  4.36%  11/29/2025   5,000,167   4,764,345   4,675,956 
Go Wireless Holdings, Inc. Telecommunications Term Loan  Loan  1M USD LIBOR+  6.50%  1.00%  7.50%  12/22/2024   3,024,675   2,992,914   3,017,114 
Goodyear Tire & Rubber Company, The Chemicals, Plastics, & Rubber Second Lien Term Loan  Loan  1M USD LIBOR+  2.00%  0.00%  2.12%  3/3/2025   3,000,000   2,933,783   2,953,740 
Graham Packaging T/L (2/21) Containers, Packaging & Glass Term Loan  Loan  1M USD LIBOR+  3.75%  0.75%  4.50%  8/4/2027   979,661   972,912   980,660 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B  Loan  1M USD LIBOR+  3.25%  0.00%  3.36%  4/12/2024   3,419,615   3,393,171   3,398,243 
Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Term Loan B  Loan  1M USD LIBOR+  2.75%  1.00%  3.75%  3/31/2025   2,399,991   2,398,303   2,395,791 
Guidehouse LLP (fka PricewaterhouseCoopers) Aerospace & Defense Term Loan  Loan  1M USD LIBOR+  4.00%  0.00%  4.11%  5/1/2025   4,924,683   4,903,634   4,951,572 
Harbor Freight Tools USA, Inc. Retail Term Loan B (10/20)  Loan  1M USD LIBOR+  3.25%  0.75%  4.00%  10/20/2027   2,992,500   2,967,649   3,004,979 
Harland Clarke Holdings Corp. Media: Advertising, Printing & Publishing Term Loan  Loan  3M USD LIBOR+  4.75%  1.00%  5.75%  11/3/2023   1,612,899   1,607,974   1,536,738 
Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17)  Loan  1M USD LIBOR+  3.75%  1.00%  4.75%  6/3/2024   244,627   244,418   243,418 
Hillman Group Inc. (The) (New) Consumer goods: Durable Hillman Group T/L B-1 (2/21)  Loan  6M USD LIBOR+  2.75%  0.50%  3.25%  2/23/2028   3,523,207   3,514,399   3,523,207 
Hillman Group Inc. (The) (New) Consumer goods: Durable Hillman Group T/L B-2 (2/21)  Loan  6M USD LIBOR+  2.75%  0.50%  2.99%  2/23/2028   632,911   631,329   632,911 
Hillman Group Inc. (The) (New)(a) Consumer goods: Durable Unfunded Commitment  Loan  3M USD LIBOR+  2.75%  0.50%  0.00%  2/23/2028   -   (2,110)  - 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18)  Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  8/18/2025   3,910,000   3,897,913   3,912,111 
Holley Purchaser, Inc Automotive Term Loan B  Loan  3M USD LIBOR+  5.00%  0.00%  5.21%  10/24/2025   2,450,000   2,432,788   2,423,981 
Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21)  Loan  3M USD LIBOR+  3.25%  0.75%  4.00%  11/12/2027   1,692,335   1,686,025   1,695,212 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan B (01/20)  Loan  1M USD LIBOR+  3.00%  0.00%  3.11%  2/18/2027   5,940,000   5,920,701   5,925,150 
Idera, Inc. High Tech Industries Idera T/L (1/21)  Loan  1M USD LIBOR+  3.75%  0.75%  4.50%  6/28/2028   1,000,000   997,500   1,000,000 
Idera, Inc. High Tech Industries Term Loan B  Loan  6M USD LIBOR+  4.00%  1.00%  5.00%  6/27/2024   3,896,805   3,886,520   3,896,805 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber INEOS US Petrochem T/L (INEOS Quattro)  Loan  1M USD LIBOR+  2.75%  0.50%  3.25%  1/20/2026   1,000,000   995,073   1,003,750 
INFINITE BIDCO LLC Wholesale Infinite Bidco T/L  Loan  1M USD LIBOR+  3.75%  0.75%  4.50%  2/22/2028   1,500,000   1,496,250   1,500,000 
Inmar Acquisition Sub, Inc. Services: Business Term Loan B  Loan  3M USD LIBOR+  4.00%  1.00%  5.00%  5/1/2024   3,421,586   3,360,370   3,400,920 
Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B  Loan  1M USD LIBOR+  3.50%  0.00%  3.61%  2/4/2027   496,250   494,123   498,424 
Intermediate Dutch Holdings Services: Business Nielsen Consumer T/L B  Loan  1M USD LIBOR+  4.00%  0.00%  4.13%  2/3/2028   250,000   248,750   250,313 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value 
MKS Instruments, Inc. High Tech Industries Term Loan B6 Loan 1M USD LIBOR+  1.75%  0.00%  1.86%  2/2/2026   877,977   871,414   878,530 
MLN US Holdco LLC Telecommunications Term Loan Loan 1M USD LIBOR+  4.50%  0.00%  4.61%  12/1/2025   980,000   978,728   913,605 
MMM Holdings, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 6M USD LIBOR+  5.75%  1.00%  6.75%  12/24/2026   6,724,026   6,605,313   6,730,347 
MRC Global Inc. Metals & Mining Term Loan B2 Loan 1M USD LIBOR+  3.00%  0.00%  3.11%  9/20/2024   484,961   484,234   477,687 
Murphy USA Inc. Retail Murphy Oil USA T/L (Quick Chek) Loan 1M USD LIBOR+  1.75%  0.50%  2.25%  1/21/2028   250,000   249,384   250,938 
MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental) Loan 3M USD LIBOR+  3.75%  0.00%  4.00%  9/30/2024   2,842,097   2,802,381   2,740,265 
Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+  3.50%  0.00%  3.63%  11/14/2025   1,487,455   1,457,602   1,483,737 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals National Mentor /Civitas (2/21) T/L C Loan 1M USD LIBOR+  4.00%  0.75%  4.75%  2/17/2028   87,464   87,026   87,289 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+  4.25%  0.00%  4.37%  3/9/2026   1,880,666   1,866,176   1,878,014 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C Loan 3M USD LIBOR+  4.25%  0.00%  4.51%  3/9/2026   86,065   85,428   85,943 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals National Mentor/ Civitas (2/21) T/L Loan 1M USD LIBOR+  4.00%  0.75%  4.75%  2/17/2028   2,623,907   2,610,787   2,618,659 
National Mentor/ Civitas (2/21) DDTL (a) Healthcare & Pharmaceuticals National Mentor (Civitas) T/L B (2/19) Loan 1M USD LIBOR+  4.25%  0.00%  4.37%  3/9/2026   -   -   (577)
NeuStar, Inc. Telecommunications Term Loan B4 (03/18) Loan 3M USD LIBOR+  3.50%  1.00%  4.50%  8/8/2024   2,641,566   2,611,256   2,542,032 
NeuStar, Inc. Telecommunications Term Loan B-5 Loan 3M USD LIBOR+  4.50%  1.00%  5.50%  8/8/2024   885,162   873,202   859,050 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Nexstar Broadcasting T/L B4 (6/19) Loan 1M USD LIBOR+  2.75%  0.00%  2.87%  9/18/2026   1,113,795   1,101,160   1,114,842 
Next Level Apparel, Inc. Retail Term Loan Loan 3M PL WIBOR+  6.00%  1.00%  7.00%  8/9/2024   1,866,250   1,853,906   1,716,950 
NM Z Parent Inc (Zep Inc) Chemicals, Plastics, & Rubber Term Loan Loan 6M USD LIBOR+  4.00%  1.00%  5.00%  8/9/2024   2,418,750   2,411,955   2,392,845 
NorthPole Newco S.a.r.l Aerospace & Defense Term Loan Loan 3M USD LIBOR+  7.00%  0.00%  7.25%  3/3/2025   5,312,500   4,890,323   4,774,609 
Novetta Solutions, LLC Aerospace & Defense Term Loan Loan 3M USD LIBOR+  5.00%  1.00%  6.00%  10/16/2022   1,899,870   1,894,609   1,889,193 
Novetta Solutions, LLC Aerospace & Defense Second Lien Term Loan Loan 3M USD LIBOR+  8.50%  1.00%  9.50%  10/16/2023   1,000,000   995,635   997,500 
NPC International, Inc. (b) Beverage, Food & Tobacco Term Loan Loan Prime+  4.50%  1.00%  7.75%  4/19/2024   487,500   487,124   430,463 
Nuvei Technologies Corp. High Tech Industries US Term Loan Loan 1M USD LIBOR+  4.00%  0.75%  4.75%  9/29/2025   250,000   249,712   251,563 
Owens & Minor Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+  4.50%  0.00%  4.62%  5/2/2025   487,500   481,151   488,631 
Pacific Gas and Electric Company Utilities: Electric PG&E Corp T/L Loan 1M USD LIBOR+  3.00%  0.50%  3.50%  6/18/2025   1,494,994   1,487,395   1,499,195 
PAE Holding Corp Aerospace & Defense Term Loan B (10/20) Loan 3M USD LIBOR+  4.50%  0.75%  5.25%  10/14/2027   2,000,000   1,971,195   2,009,160 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Panther Commercial T/L (1/21) (Forcepoint) Loan 3M USD LIBOR+  4.50%  0.50%  4.71%  1/7/2028   500,000   496,307   499,375 
Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan 1M USD LIBOR+  3.75%  0.00%  3.86%  3/31/2027   496,437   485,943   496,934 
PaySafe Group PLC Services: Business Term Loan B1 (PI UK Holdco II) Loan 1M USD LIBOR+  3.50%  1.00%  4.50%  1/3/2025   1,458,750   1,453,593   1,457,320 
PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  2.61%  5/29/2026   878,269   874,719   876,803 
Penn National Gaming Hotel, Gaming & Leisure Term Loan B-1 Loan 1M USD LIBOR+  2.25%  0.75%  3.00%  10/15/2025   1,782,979   1,722,678   1,780,109 
Issuer Name Industry Asset
Name		 Asset  
Type		  Reference Rate/Spread LIBOR Floor  Current Rate
(All In)		  Maturity Date  Principal/ Number of Shares  Cost  Fair Value 
Isagenix International, LLC Beverage, Food & Tobacco Term Loan  Loan  3M USD LIBOR+  5.75%  1.00%  6.75%  6/14/2025   2,622,582   2,586,650   1,652,227 
Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals Term Loan  Loan  1M USD LIBOR+  3.50%  0.00%  3.62%  3/14/2025   957,262   954,285   944,100 
J Jill Group, Inc Retail Priming Term Loan  Loan  6M USD LIBOR+  5.00%  1.00%  6.00%  5/8/2024   1,779,081   1,776,970   1,138,612 
Jane Street Group Banking, Finance, Insurance & Real Estate Jane Street Group T/L (1/21)  Loan  1M USD LIBOR+  2.75%  0.00%  2.86%  1/31/2028   2,500,000   2,496,997   2,491,975 
Jefferies Finance LLC / JFIN Co-Issuer Corp Banking, Finance, Insurance & Real Estate Term Loan  Loan  1M USD LIBOR+  3.00%  0.00%  3.13%  6/3/2026   3,796,822   3,781,950   3,789,380 
Journey Personal Care Corp. Consumer goods: Non-durable Journey Personal Care T/L B (Domtar)  Loan  6M USD LIBOR+  4.25%  0.75%  5.00%  2/19/2028   1,000,000   995,000   1,002,500 
JP Intermediate B, LLC Consumer goods: Non-durable Term Loan  Loan  3M USD LIBOR+  5.50%  1.00%  6.50%  11/15/2025   4,423,877   4,386,340   4,154,021 
KAR Auction Services, Inc. Automotive Term Loan B (09/19)  Loan  1M USD LIBOR+  2.25%  0.00%  2.44%  9/19/2026   246,875   246,391   243,172 
Kindred Healthcare, Inc. Healthcare & Pharmaceuticals Term Loan (6/18)  Loan  1M USD LIBOR+  4.50%  0.00%  4.63%  7/2/2025   1,979,747   1,962,749   1,982,222 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Klockner Pentaplast T/L (Kleopatra)  Loan  1M USD LIBOR+  4.75%  0.50%  5.25%  2/4/2026   1,500,000   1,492,500   1,500,945 
Kodiak BP, LLC Construction & Building Term Loan  Loan  1M USD LIBOR+  3.25%  0.75%  4.00%  2/26/2028   500,000   497,500   499,375 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan  Loan  3M USD LIBOR+  4.75%  1.00%  5.75%  8/4/2027   500,000   488,256   501,250 
Lakeland Tours, LLC Hotel, Gaming & Leisure 2nd Out Take Back PIK Term Loan  Loan  3M USD LIBOR+  1.50%  1.25%  2.75%  9/25/2025   585,723   478,159   524,222 
Lakeland Tours, LLC Hotel, Gaming & Leisure Third Out PIK Term Loan  Loan  3M USD LIBOR+  1.50%  1.25%  2.75%  9/25/2025   777,562   451,283   515,780 
Lakeland Tours, LLC Hotel, Gaming & Leisure Holdco Fixed Term Loan  Loan  Fixed  8.00%  0.00%  13.25%  9/27/2027   763,381   128,938   277,359 
Lakeland Tours, LLC Hotel, Gaming & Leisure Priority Exit PIK Term Loan (9/20)  Loan  3M USD LIBOR+  6.00%  1.25%  7.25%  9/25/2023   306,588   292,181   306,076 
Lealand Finance Company B.V. Energy: Oil & Gas Exit Term Loan  Loan  1M USD LIBOR+  1.00%  0.00%  1.11%  6/30/2025   324,682   324,682   209,258 
Learfield Communications, Inc Media: Advertising, Printing & Publishing Initial Term Loan (A-L Parent)  Loan  1M USD LIBOR+  3.25%  1.00%  4.25%  12/1/2023   480,000   478,959   439,296 
Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B  Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  2/28/2025   2,905,639   2,876,036   2,878,413 
Liftoff Mobile, Inc. Media: Advertising, Printing & Publishing Liftoff Mobile T/L  Loan  1M USD LIBOR+  3.50%  0.75%  4.25%  2/17/2028   1,000,000   995,000   997,500 
Lightstone Generation LLC Energy: Electricity Term Loan B  Loan  3M USD LIBOR+  3.75%  1.00%  4.75%  1/30/2024   1,322,520   1,321,129   1,133,241 
Lightstone Generation LLC Energy: Electricity Term Loan C  Loan  3M USD LIBOR+  3.75%  1.00%  4.75%  1/30/2024   74,592   74,517   63,917 
Lindblad Expeditions, Inc. Hotel, Gaming & Leisure Cayman Term Loan  Loan  1M USD LIBOR+  3.50%  0.75%  4.25%  3/21/2025   98,191   98,037   90,827 
Lindblad Expeditions, Inc. Hotel, Gaming & Leisure US 2018 Term Loan  Loan  1M USD LIBOR+  3.50%  0.75%  4.25%  3/21/2025   392,764   392,147   363,307 
Liquidnet Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B  Loan  6M USD LIBOR+  3.25%  1.00%  4.25%  7/11/2024   1,960,766   1,957,232   1,952,237 
LogMeIn, Inc. High Tech Industries Term Loan (8/20)  Loan  1M USD LIBOR+  4.75%  0.00%  4.87%  8/31/2027   4,000,000   3,927,780   3,996,680 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1  Loan  1M USD LIBOR+  1.75%  0.00%  1.87%  11/11/2026   1,232,760   1,230,271   1,224,032 
MA FinanceCo LLC High Tech Industries Term Loan B4  Loan  3M USD LIBOR+  4.25%  1.00%  5.25%  5/29/2025   2,474,961   2,466,727   2,502,804 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value 
Peraton Corp. Aerospace & Defense Peraton T/L B Loan 6M USD LIBOR+  3.75%  0.75%  4.50%  2/22/2028   1,811,655   1,802,597   1,818,449 
Peraton Corp. (a) Aerospace & Defense Unfunded Commitment Loan 6M USD LIBOR+  3.75%  0.75%  4.50%  2/1/2028   -   (15,942)  11,956 
PGX Holdings, Inc. Services: Consumer Term Loan Loan 12M USD LIBOR+  5.25%  1.00%  6.25%  9/29/2023   3,149,230   3,127,880   2,998,508 
Pitney Bowes Inc Services: Business Term Loan B Loan 1M USD LIBOR+  5.50%  0.00%  5.62%  1/7/2025   2,887,500   2,625,587   2,875,459 
Pixelle Specialty Solutions LLC Forest Products & Paper Term Loan Loan 1M USD LIBOR+  6.50%  1.00%  7.50%  10/31/2024   3,535,026   3,510,411   3,531,491 
Plastipak Holdings Inc. Containers, Packaging & Glass Plastipak Packaging T/L B (04/18) Loan 1M USD LIBOR+  2.50%  0.00%  2.62%  10/14/2024   2,789,599   2,771,753   2,788,288 
Playtika Holding Corp. High Tech Industries Trm Loan B (12/19) Loan 6M USD LIBOR+  6.00%  1.00%  7.00%  12/10/2024   2,837,975   2,793,084   2,850,746 
PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan 6M USD LIBOR+  3.00%  0.75%  3.75%  12/15/2027   500,000   497,597   502,500 
Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+  4.75%  0.75%  5.50%  2/12/2028   5,000,000   4,932,905   4,950,000 
PPD, Inc. Healthcare & Pharmaceuticals Term Loan (12/20) Loan 1M USD LIBOR+  2.25%  0.50%  2.75%  1/13/2028   500,000   497,556   501,530 
Pre-Paid Legal Services, Inc. Services: Business Incremental Term Loan Loan 1M USD LIBOR+  4.00%  0.75%  4.75%  5/1/2025   997,500   983,807   1,001,869 
Presidio, Inc. Services: Business Term Loan B (1/20) Loan 3M USD LIBOR+  3.50%  0.00%  3.72%  1/22/2027   497,500   496,508   498,120 
Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan 12M USD LIBOR+  2.75%  0.75%  3.50%  9/23/2026   3,583,174   3,568,406   3,585,178 
Priority Payment Systems LLC High Tech Industries Term Loan Loan 1M USD LIBOR+  6.50%  1.00%  7.50%  1/3/2023   1,690,068   1,685,378   1,681,615 
PriSo Acquisition Corporation Construction & Building Park River Holdings T/L (01/21) Loan 3M USD LIBOR+  3.25%  0.75%  4.00%  12/28/2027   500,000   497,500   500,535 
Project Leopard T/L (Kofax) High Tech Industries Term Loan Loan 3M USD LIBOR+  5.05%  1.00%  5.25%  7/8/2024   500,000   498,750   500,468 
Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan 1M USD LIBOR+  3.00%  1.00%  4.00%  1/29/2025   486,338   484,893   472,961 
PUG LLC Services: Consumer Term Loan B (02/20) Loan 1M USD LIBOR+  3.50%  0.00%  3.61%  2/12/2027   490,025   487,871   475,323 
Rackspace Technology Global, Inc. High Tech Industries Rackspace Technology Global T/L B Loan 3M USD LIBOR+  2.75%  0.75%  3.50%  2/2/2028   500,000   497,527   499,615 
Radiology Partners Holdings, LLC Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+  4.25%  0.00%  4.37%  7/4/2025   1,432,727   1,427,557   1,426,466 
Ravago Holdings America Chemicals, Plastics, & Rubber Ravago (2/21) T/L Loan 6M USD LIBOR+  2.50%  0.00%  2.75%  2/9/2028   1,000,000   997,500   999,380 
RealPage, Inc. High Tech Industries RealPage T/L (2/21) Loan 1M USD LIBOR+  3.25%  0.50%  3.38%  2/17/2028   3,000,000   2,992,500   3,001,260 
Redstone Buyer, LLC High Tech Industries Term Loan Loan 3M USD LIBOR+  5.00%  1.00%  6.00%  9/1/2027   997,500   979,386   1,009,141 
Renaissance Learning T/L (5/18) Services: Consumer Term Loan Loan 1M USD LIBOR+  3.25%  0.00%  3.36%  5/30/2025   3,000,000   2,970,900   2,968,740 
Rent-A-Center, Inc. Retail Rent-A-Center T/L B (01/21) Loan 1M USD LIBOR+  4.00%  0.75%  4.75%  1/17/2028   500,000   497,500   503,125 
REP WWEX (Worldwide Express) Aquisition Parent, LLC Transportation: Consumer Term Loan B Loan 6M USD LIBOR+  4.00%  1.00%  5.00%  2/2/2024   1,927,839   1,926,592   1,932,658 
Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan 6M USD LIBOR+  5.50%  1.00%  6.50%  12/20/2024   3,887,330   3,796,436   3,881,499 
Resideo Funding Inc. Services: Consumer Resideo Funding T/L (1/21) (Resideo Technologies) Loan 3M USD LIBOR+  2.25%  0.50%  2.75%  2/11/2028   1,500,000   1,496,250   1,496,250 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 3M USD LIBOR+  3.75%  1.00%  4.75%  4/30/2024   2,651,324   2,651,324   2,657,952 
Rexnord LLC Capital Equipment Term Loan (11/19) Loan 1M USD LIBOR+  1.75%  0.00%  1.86%  8/21/2024   862,069   862,069   860,724 
Issuer Name Industry Asset
Name		 Asset  
Type		  Reference Rate/Spread LIBOR Floor  Current Rate
(All In)		  Maturity Date  Principal/ Number of Shares  Cost  Fair Value 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19)  Loan  1M USD LIBOR+  1.75%  0.00%  1.86%  8/29/2025   1,317,074   1,317,074   1,296,080 
Match Group, Inc, The Services: Consumer Term Loan (1/20)  Loan  3M USD LIBOR+  1.75%  0.00%  1.95%  2/15/2027   250,000   249,476   247,735 
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan  Loan  1M USD LIBOR+  4.50%  0.00%  4.61%  2/28/2025   3,427,214   3,397,660   3,380,090 
McAfee, LLC Services: Business Term Loan B  Loan  1M USD LIBOR+  3.75%  0.00%  3.86%  9/30/2024   1,928,400   1,921,750   1,932,121 
McGraw-Hill Global Education Holdings, LLC Media: Advertising, Printing & Publishing Term Loan B  Loan  3M USD LIBOR+  4.75%  1.00%  5.75%  11/1/2024   2,544,391   2,364,344   2,538,666 
Meredith Corporation Media: Advertising, Printing & Publishing Term Loan B2  Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  1/31/2025   578,738   577,965   575,555 
Mermaid Bidco Inc. High Tech Industries Term Loan 12/20  Loan  2M USD LIBOR+  4.25%  0.75%  5.00%  12/1/2027   500,000   497,584   501,565 
Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B  Loan  3M USD LIBOR+  2.50%  0.00%  2.75%  3/1/2026   3,944,962   3,923,644   3,942,003 
Michaels Stores, Inc. Retail Term Loan B (9/20)  Loan  1M USD LIBOR+  3.50%  0.75%  4.25%  10/1/2027   2,571,414   2,565,167   2,567,557 
Midwest Physician Administrative Services LLC (Dupage Medical Group) Healthcare & Pharmaceuticals Term Loan (2/18)  Loan  1M USD LIBOR+  2.75%  0.75%  3.50%  8/15/2024   961,003   958,186   960,522 
Mitchell International, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/20)  Loan  1M USD LIBOR+  4.25%  0.50%  4.75%  11/29/2024   997,500   944,391   1,000,991 
MKS Instruments, Inc. High Tech Industries Term Loan B6  Loan  1M USD LIBOR+  1.75%  0.00%  1.86%  2/2/2026   877,977   871,414   878,530 
MLN US Holdco LLC Telecommunications Term Loan  Loan  1M USD LIBOR+  4.50%  0.00%  4.61%  12/1/2025   980,000   978,728   913,605 
MMM Holdings, Inc. Healthcare & Pharmaceuticals Term Loan B  Loan  6M USD LIBOR+  5.75%  1.00%  6.75%  12/24/2026   6,724,026   6,605,313   6,730,347 
MRC Global Inc. Metals & Mining Term Loan B2  Loan  1M USD LIBOR+  3.00%  0.00%  3.11%  9/20/2024   484,961   484,234   477,687 
Murphy USA Inc. Retail Murphy Oil USA T/L (Quick Chek)  Loan  1M USD LIBOR+  1.75%  0.50%  2.25%  1/21/2028   250,000   249,384   250,938 
MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental)  Loan  3M USD LIBOR+  3.75%  0.00%  4.00%  9/30/2024   2,842,097   2,802,381   2,740,265 
Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan  Loan  1M USD LIBOR+  3.50%  0.00%  3.63%  11/14/2025   1,487,455   1,457,602   1,483,737 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals National Mentor /Civitas (2/21) T/L C  Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  2/17/2028   87,464   87,026   87,289 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan  Loan  1M USD LIBOR+  4.25%  0.00%  4.37%  3/9/2026   1,880,666   1,866,176   1,878,014 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C  Loan  3M USD LIBOR+  4.25%  0.00%  4.51%  3/9/2026   86,065   85,428   85,943 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals National Mentor/ Civitas (2/21) T/L  Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  2/17/2028   2,623,907   2,610,787   2,618,659 
National Mentor/ Civitas (2/21) DDTL (a) Healthcare & Pharmaceuticals National Mentor (Civitas) T/L B (2/19)  Loan  1M USD LIBOR+  4.25%  0.00%  4.37%  3/9/2026   -   -   (577)
NeuStar, Inc. Telecommunications Term Loan B4 (03/18)  Loan  3M USD LIBOR+  3.50%  1.00%  4.50%  8/8/2024   2,641,566   2,611,256   2,542,032 
NeuStar, Inc. Telecommunications Term Loan B-5  Loan  3M USD LIBOR+  4.50%  1.00%  5.50%  8/8/2024   885,162  ��873,202   859,050 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value 
Reynolds Consumer Products LLC Containers, Packaging & Glass Reynolds Consumer Products T/L Loan 1M USD LIBOR+  1.75%  0.00%  1.86%  1/29/2027   1,306,932   1,305,639   1,307,912 
Reynolds Group Holdings Inc. Metals & Mining Term Loan B2 Loan 1M USD LIBOR+  3.25%  0.00%  3.36%  2/5/2026   2,000,000   1,986,099   1,991,660 
Robertshaw US Holding Corp. Consumer goods: Durable Term Loan B Loan 1M USD LIBOR+  3.50%  1.00%  4.50%  2/28/2025   972,500   970,927   916,581 
Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan 1M USD LIBOR+  4.25%  0.00%  4.36%  11/28/2025   2,935,063   2,925,286   2,939,114 
RP Crown Parent, LLC High Tech Industries Term Loan B (07/20) Loan 1M USD LIBOR+  3.00%  1.00%  4.00%  1/31/2026   1,990,000   1,981,157   1,992,488 
Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 6M USD LIBOR+  3.00%  1.00%  4.00%  6/2/2025   5,637,965   5,591,015   5,648,565 
RV Retailer LLC Automotive RVR Dealership Holdings T/L (RV Retailer) Loan 3M USD LIBOR+  4.00%  0.75%  4.75%  1/28/2028   2,000,000   1,980,404   1,992,500 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  3.25%  0.75%  4.00%  9/1/2027   498,750   491,823   499,373 
Sally Holdings LLC Retail Term Loan B Loan 1M USD LIBOR+  2.25%  0.00%  2.37%  7/5/2024   768,409   766,247   768,409 
Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan 1M USD LIBOR+  4.50%  1.00%  5.50%  4/25/2025   995,000   968,936   1,002,463 
Savage Enterprises, LLC Energy: Oil & Gas Term Loan B (02/20) Loan 1M USD LIBOR+  3.00%  0.00%  3.12%  8/1/2025   1,769,504   1,754,769   1,771,999 
Schweitzer-Mauduit International, Inc. High Tech Industries Schweitzer-Mauduit T/L B Loan 1M USD LIBOR+  4.00%  0.75%  4.75%  1/27/2028   1,000,000   990,000   997,500 
Seadrill Operating LP (b) Energy: Oil & Gas PIK Revolver Loan 1M USD LIBOR+  0.00%  1.00%  1.00%  3/31/2021   25,683   25,656   27,224 
Seadrill Operating LP (b) Energy: Oil & Gas Term Loan B Loan 1M USD LIBOR+  8.00%  1.00%  9.00%  3/31/2021   897,442   897,442   86,379 
Shutterfly Inc Media: Advertising, Printing & Publishing Term Loan B Loan 3M USD LIBOR+  6.00%  1.00%  7.00%  9/25/2026   800,968   767,474   803,403 
Sirius Computer Solutions, Inc. High Tech Industries Term Loan 1/20 Loan 1M USD LIBOR+  3.50%  0.00%  3.61%  7/1/2026   1,970,100   1,966,584   1,970,809 
SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan 1M USD LIBOR+  2.50%  0.00%  2.61%  1/23/2025   495,000   495,000   470,869 
Sotheby’s Services: Business Term Loan (1/21) Loan 3M USD LIBOR+  4.75%  0.75%  5.50%  1/15/2027   3,289,283   3,230,819   3,312,571 
Specialty Pharma III Inc. Services: Business Term Loan Loan 1M USD LIBOR+  4.50%  0.75%  5.25%  2/24/2028   2,000,000   1,980,000   1,980,000 
Spectrum Brands, Inc. Consumer goods: Durable Spectrum Brands T/L (2/21) Loan 1M USD LIBOR+  2.00%  0.50%  2.50%  2/19/2028   500,000   498,750   501,250 
SRAM, LLC Consumer goods: Durable Term Loan Loan 1M USD LIBOR+  2.75%  1.00%  3.75%  3/15/2024   2,221,329   2,219,239   2,225,505 
SS&C Technologies, Inc. Services: Business Term Loan B4 Loan 1M USD LIBOR+  1.75%  0.00%  1.86%  4/16/2025   178,883   178,618   178,212 
SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan 1M USD LIBOR+  1.75%  0.00%  1.86%  4/16/2025   488,567   487,746   486,735 
SS&C Technologies, Inc. Services: Business Term Loan B3 Loan 1M USD LIBOR+  1.75%  0.00%  1.86%  4/16/2025   234,915   234,561   234,034 
Staples, Inc. Wholesale Term Loan (03/19) Loan 3M USD LIBOR+  5.00%  0.00%  5.21%  4/16/2026   4,431,567   4,285,772   4,340,853 
Stats LLC Hotel, Gaming & Leisure Term Loan Loan 3M USD LIBOR+  5.25%  0.00%  5.45%  7/10/2026   1,980,000   1,940,067   1,972,575 
Storable, Inc High Tech Industries Term Loan B Loan 1M USD LIBOR+  3.25%  0.50%  3.75%  2/26/2028   500,000   498,750   500,000 
Syncsort Incorporated High Tech Industries Term Loan (1/21) Loan 3M USD LIBOR+  4.75%  0.75%  5.50%  8/16/2024   1,935,450   1,922,522   1,939,476 

Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value 
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  5.25%  1.00%  6.25%  7/15/2025   2,468,750   2,392,146   2,471,836 
Tenneco Inc Capital Equipment Term Loan B Loan 1M USD LIBOR+  3.00%  0.00%  3.11%  10/1/2025   1,470,000   1,459,901   1,440,233 
Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  4.00%  1.00%  5.00%  9/27/2024   1,940,000   1,938,385   1,841,390 
The Octave Music Group, Inc (Touchtunes) Services: Business Term Loan B Loan 1M USD LIBOR+  5.25%  1.00%  6.25%  5/29/2025   3,896,552   3,862,705   3,584,828 
Thor Industries, Inc. Automotive Term Loan (USD) Loan 1M USD LIBOR+  3.75%  0.00%  3.88%  2/1/2026   2,935,080   2,874,260   2,937,839 
Tivity Health, Inc. Healthcare & Pharmaceuticals Term Loan A Loan 1M USD LIBOR+  4.25%  0.00%  4.36%  3/7/2024   558,772   555,085   556,677 
Tivity Health, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+  5.25%  0.00%  5.36%  3/6/2026   1,064,955   1,044,356   1,060,461 
Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD LIBOR+  3.50%  0.75%  4.25%  8/18/2027   500,000   493,032   501,565 
Transdigm, Inc. Aerospace & Defense Term Loan G (02/20) Loan 1M USD LIBOR+  2.25%  0.00%  2.36%  8/22/2024   4,065,230   4,068,753   4,014,415 
Travel Leaders Group, LLC Hotel, Gaming & Leisure Term Loan B (08/18) Loan 1M USD LIBOR+  4.00%  0.00%  4.11%  1/25/2024   2,437,500   2,435,050   2,268,411 
TRC Companies, Inc. Services: Business Term Loan Loan 1M USD LIBOR+  3.50%  1.00%  4.50%  6/21/2024   3,315,141   3,307,088   3,311,826 
TRC Companies, Inc. Services: Business TRC Companies T/L (1/21) Loan 1M USD LIBOR+  4.50%  0.75%  5.25%  6/21/2024   2,479,433   2,468,047   2,485,631 
Trico Group LLC Automotive Term Loan B-3 Loan 3M USD LIBOR+  7.50%  1.00%  8.50%  2/2/2024   5,070,478   4,962,793   5,150,338 
Trident LS Merger Sub Corporation Services: Consumer Term Loan (03/18) Loan 1M USD LIBOR+  3.25%  0.00%  3.36%  5/1/2025   2,000,000   2,004,987   1,999,500 
Truck Hero, Inc. Transportation: Cargo Term Loan (1/21) Loan 1M USD LIBOR+  3.75%  0.75%  4.50%  1/29/2028   1,500,000   1,500,000   1,501,065 
TruGreen Limited Partnership Services: Consumer Term Loan Loan 1M USD LIBOR+  4.00%  0.75%  4.75%  10/29/2027   973,980   966,347   980,068 
Twin River Worldwide Holdings, Inc. Hotel, Gaming & Leisure Term Loan B Loan 3M USD LIBOR+  2.75%  0.00%  3.00%  5/10/2026   985,000   981,152   975,889 
Uber Technologies T/L B (2/21) Transportation: Consumer Term Loan Loan 1M USD LIBOR+  3.50%  0.00%  3.62%  7/13/2023   1,989,610   1,941,468   1,992,097 
Ultimate Software Group, Inc. (The) High Tech Industries Term Loan 1/21 Loan 3M USD LIBOR+  3.25%  0.75%  4.00%  5/4/2026   1,000,000   1,000,000   1,005,690 
Unimin Corporation Metals & Mining Term Loan (12/20) Loan 3M USD LIBOR+  4.00%  1.00%  5.00%  7/31/2026   496,815   466,608   476,232 
United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+  3.50%  0.00%  3.61%  10/22/2025   1,973,611   1,879,449   1,978,545 
United Road Services Inc. Transportation: Cargo Term Loan (10/17) Loan 6M USD LIBOR+  5.75%  1.00%  6.75%  9/1/2024   952,506   944,697   880,592 
Univar Inc. Chemicals, Plastics, & Rubber Term Loan B3 (11/17) Loan 1M USD LIBOR+  2.25%  0.00%  2.36%  7/1/2024   1,627,723   1,623,316   1,628,602 
Univision Communications Inc. Media: Broadcasting & Subscription 2020 Replacement Term Loan Loan 1M USD LIBOR+  3.75%  1.00%  4.75%  3/13/2026   2,517,037   2,508,528   2,527,433 
US Ecology, Inc. Environmental Industries Term Loan B Loan 1M USD LIBOR+  2.50%  0.00%  2.61%  11/2/2026   495,000   494,095   496,445 
Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+  3.00%  0.00%  3.11%  1/13/2028   100,000   99,764   100,464 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan 3M USD LIBOR+  4.00%  0.00%  4.18%  8/20/2025   1,396,606   1,389,850   1,362,571 
VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  3.00%  0.00%  3.11%  3/1/2026   3,209,493   3,199,747   3,215,526 
Virence Intermediate Holdings LLC (Athenahealth / VVC Holding) Healthcare & Pharmaceuticals Athenahealth T/L B (01/21) Loan 3M USD LIBOR+  4.25%  0.00%  4.45%  2/11/2026   3,965,000   3,935,495   3,986,570 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 6M USD LIBOR+  2.25%  0.75%  3.00%  6/3/2024   2,406,176   2,405,891   2,407,692 
Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  1.86%  12/31/2025   917,338   916,645   913,751 
Vizient, Inc Healthcare & Pharmaceuticals Term Loan B-6 Loan 1M USD LIBOR+  2.00%  0.00%  2.11%  5/6/2026   491,250   490,388   490,430 
Issuer Name Industry Asset
Name		 Asset  
Type		  Reference Rate/Spread LIBOR Floor  Current Rate
(All In)		  Maturity Date  Principal/ Number of Shares  Cost  Fair Value 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Nexstar Broadcasting T/L B4 (6/19)  Loan  1M USD LIBOR+  2.75%  0.00%  2.87%  9/18/2026   1,113,795   1,101,160   1,114,842 
Next Level Apparel, Inc. Retail Term Loan  Loan  3M PL WIBOR+  6.00%  1.00%  7.00%  8/9/2024   1,866,250   1,853,906   1,716,950 
NM Z Parent Inc (Zep Inc) Chemicals, Plastics, & Rubber Term Loan  Loan  6M USD LIBOR+  4.00%  1.00%  5.00%  8/9/2024   2,418,750   2,411,955   2,392,845 
NorthPole Newco S.a.r.l Aerospace & Defense Term Loan  Loan  3M USD LIBOR+  7.00%  0.00%  7.25%  3/3/2025   5,312,500   4,890,323   4,774,609 
Novetta Solutions, LLC Aerospace & Defense Term Loan  Loan  3M USD LIBOR+  5.00%  1.00%  6.00%  10/16/2022   1,899,870   1,894,609   1,889,193 
Novetta Solutions, LLC Aerospace & Defense Second Lien Term Loan  Loan  3M USD LIBOR+  8.50%  1.00%  9.50%  10/16/2023   1,000,000   995,635   997,500 
NPC International, Inc. (b) Beverage, Food & Tobacco Term Loan  Loan  Prime+  4.50%  1.00%  7.75%  4/19/2024   487,500   487,124   430,463 
Nuvei Technologies Corp. High Tech Industries US Term Loan  Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  9/29/2025   250,000   249,712   251,563 
Owens & Minor Healthcare & Pharmaceuticals Term Loan B  Loan  1M USD LIBOR+  4.50%  0.00%  4.62%  5/2/2025   487,500   481,151   488,631 
Pacific Gas and Electric Company Utilities: Electric PG&E Corp T/L  Loan  1M USD LIBOR+  3.00%  0.50%  3.50%  6/18/2025   1,494,994   1,487,395   1,499,195 
PAE Holding Corp Aerospace & Defense Term Loan B (10/20)  Loan  3M USD LIBOR+  4.50%  0.75%  5.25%  10/14/2027   2,000,000   1,971,195   2,009,160 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Panther Commercial T/L (1/21) (Forcepoint)  Loan  3M USD LIBOR+  4.50%  0.50%  4.71%  1/7/2028   500,000   496,307   499,375 
Pathway Partners Vet Management Company LLC Services: Business Term Loan  Loan  1M USD LIBOR+  3.75%  0.00%  3.86%  3/31/2027   496,437   485,943   496,934 
PaySafe Group PLC Services: Business Term Loan B1 (PI UK Holdco II)  Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  1/3/2025   1,458,750   1,453,593   1,457,320 
PCI Gaming Authority Hotel, Gaming & Leisure Term Loan  Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  5/29/2026   878,269   874,719   876,803 
Penn National Gaming Hotel, Gaming & Leisure Term Loan B-1  Loan  1M USD LIBOR+  2.25%  0.75%  3.00%  10/15/2025   1,782,979   1,722,678   1,780,109 
Peraton Corp. Aerospace & Defense Peraton T/L B  Loan  6M USD LIBOR+  3.75%  0.75%  4.50%  2/22/2028   1,811,655   1,802,597   1,818,449 
Peraton Corp. (a) Aerospace & Defense Unfunded Commitment  Loan  6M USD LIBOR+  3.75%  0.75%  4.50%  2/1/2028   -   (15,942)  11,956 
PGX Holdings, Inc. Services: Consumer Term Loan  Loan  12M USD LIBOR+  5.25%  1.00%  6.25%  9/29/2023   3,149,230   3,127,880   2,998,508 
Pitney Bowes Inc Services: Business Term Loan B  Loan  1M USD LIBOR+  5.50%  0.00%  5.62%  1/7/2025   2,887,500   2,625,587   2,875,459 
Pixelle Specialty Solutions LLC Forest Products & Paper Term Loan  Loan  1M USD LIBOR+  6.50%  1.00%  7.50%  10/31/2024   3,535,026   3,510,411   3,531,491 
Plastipak Holdings Inc. Containers, Packaging & Glass Plastipak Packaging T/L B (04/18)  Loan  1M USD LIBOR+  2.50%  0.00%  2.62%  10/14/2024   2,789,599   2,771,753   2,788,288 
Playtika Holding Corp. High Tech Industries Trm Loan B (12/19)  Loan  6M USD LIBOR+  6.00%  1.00%  7.00%  12/10/2024   2,837,975   2,793,084   2,850,746 
PointClickCare Technologies, Inc. High Tech Industries Term Loan B  Loan  6M USD LIBOR+  3.00%  0.75%  3.75%  12/15/2027   500,000   497,597   502,500 
Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan  Loan  1M USD LIBOR+  4.75%  0.75%  5.50%  2/12/2028   5,000,000   4,932,905   4,950,000 
PPD, Inc. Healthcare & Pharmaceuticals Term Loan (12/20)  Loan  1M USD LIBOR+  2.25%  0.50%  2.75%  1/13/2028   500,000   497,556   501,530 
Pre-Paid Legal Services, Inc. Services: Business Incremental Term Loan  Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  5/1/2025   997,500   983,807   1,001,869 
Presidio, Inc. Services: Business Term Loan B (1/20)  Loan  3M USD LIBOR+  3.50%  0.00%  3.72%  1/22/2027   497,500   496,508   498,120 


Issuer Name Industry Asset Name Asset
Type		 Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/
Number of Shares		  Cost  Fair Value 
VM Consolidated, Inc. Construction & Building Term Loan B1 (02/20) Loan 1M USD LIBOR+  3.25%  0.00%  3.36%  2/28/2025   475,444   473,957   475,344 
Vouvray US Finance LLC High Tech Industries Term Loan Loan 1M USD LIBOR+  3.00%  1.00%  4.00%  3/11/2024   481,250   481,250   417,605 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G Loan 1M USD LIBOR+  2.13%  0.00%  2.24%  1/20/2028   250,000   249,702   250,403 
Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries Term Loan (3/18) Loan 1M USD LIBOR+  3.50%  1.00%  4.50%  3/15/2025   494,911   492,859   492,436 
WeddingWire, Inc. Services: Consumer Term Loan Loan 2M USD LIBOR+  4.50%  0.00%  4.66%  12/19/2025   3,920,000   3,914,114   3,875,900 
West Corporation Telecommunications Term Loan B Loan 1M USD LIBOR+  3.50%  1.00%  4.50%  10/10/2024   2,931,109   2,874,412   2,866,742 
West Corporation Telecommunications Term Loan B (Olympus Merger) Loan 3M USD LIBOR+  4.00%  1.00%  5.00%  10/10/2024   1,224,748   1,166,274   1,207,062 
Western Dental Services, Inc. Retail Term Loan (12/18) Loan 1M USD LIBOR+  5.25%  1.00%  6.25%  6/30/2023   424,019   424,421   416,598 
Western Digital Corporation High Tech Industries Term Loan B-4 Loan 1M USD LIBOR+  1.75%  0.00%  1.86%  4/29/2023   743,135   732,963   742,867 
Wirepath LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+  4.00%  0.00%  4.25%  8/5/2024   2,925,193   2,906,978   2,897,170 
WP CITYMD BIDCO LLC Services: Consumer Term Loan B (1/21) Loan 6M USD LIBOR+  3.75%  0.75%  4.50%  8/13/2026   3,465,000   3,437,657   3,471,791 
Xperi Corporation High Tech Industries Term Loan Loan 1M USD LIBOR+  4.00%  0.00%  4.11%  6/1/2025   2,854,798   2,706,612   2,874,439 
Zekelman Industries, Inc. Metals & Mining Term Loan (01/20) Loan 1M USD LIBOR+  2.00%  0.00%  2.11%  1/25/2027   970,775   970,775   968,551 
                              $595,249,474  $592,020,041 
Issuer Name Industry Asset
Name		 Asset
Type		  Reference Rate/Spread LIBOR Floor  Current Rate
(All In)		  Maturity Date  Principal/ Number of Shares  Cost  Fair Value 
Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21)  Loan  12M USD  LIBOR+  2.75%  0.75%  3.50%  9/23/2026   3,583,174   3,568,406   3,585,178 
Priority Payment Systems LLC High Tech Industries Term Loan  Loan  1M USD LIBOR+  6.50%  1.00%  7.50%  1/3/2023   1,690,068   1,685,378   1,681,615 
PriSo Acquisition Corporation Construction & Building Park River Holdings T/L (01/21)  Loan  3M USD LIBOR+  3.25%  0.75%  4.00%  12/28/2027   500,000   497,500   500,535 
Project Leopard T/L (Kofax) High Tech Industries Term Loan  Loan  3M USD LIBOR+  5.05%  1.00%  5.25%  7/8/2024   500,000   498,750   500,468 
Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan  Loan  1M USD LIBOR+  3.00%  1.00%  4.00%  1/29/2025   486,338   484,893   472,961 
PUG LLC Services: Consumer Term Loan B (02/20)  Loan  1M USD LIBOR+  3.50%  0.00%  3.61%  2/12/2027   490,025   487,871   475,323 
Rackspace Technology Global, Inc. High Tech Industries Rackspace Technology Global T/L B  Loan  3M USD LIBOR+  2.75%  0.75%  3.50%  2/2/2028   500,000   497,527   499,615 
Radiology Partners Holdings, LLC Healthcare & Pharmaceuticals Term Loan  Loan  1M USD LIBOR+  4.25%  0.00%  4.37%  7/4/2025   1,432,727   1,427,557   1,426,466 
Ravago Holdings America Chemicals, Plastics, & Rubber Ravago (2/21) T/L  Loan  6M USD LIBOR+  2.50%  0.00%  2.75%  2/9/2028   1,000,000   997,500   999,380 
RealPage, Inc. High Tech Industries RealPage T/L (2/21)  Loan  1M USD LIBOR+  3.25%  0.50%  3.38%  2/17/2028   3,000,000   2,992,500   3,001,260 
Redstone Buyer, LLC High Tech Industries Term Loan  Loan  3M USD LIBOR+  5.00%  1.00%  6.00%  9/1/2027   997,500   979,386   1,009,141 
Renaissance Learning T/L (5/18) Services: Consumer Term Loan  Loan  1M USD LIBOR+  3.25%  0.00%  3.36%  5/30/2025   3,000,000   2,970,900   2,968,740 
Rent-A-Center, Inc. Retail Rent-A-Center T/L B (01/21)  Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  1/17/2028   500,000   497,500   503,125 
REP WWEX (Worldwide Express) Aquisition Parent, LLC Transportation: Consumer Term Loan B  Loan  6M USD LIBOR+  4.00%  1.00%  5.00%  2/2/2024   1,927,839   1,926,592   1,932,658 
Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan  Loan  6M USD LIBOR+  5.50%  1.00%  6.50%  12/20/2024   3,887,330   3,796,436   3,881,499 
Resideo Funding Inc. Services: Consumer Resideo Funding T/L (1/21) (Resideo Technologies)  Loan  3M USD LIBOR+  2.25%  0.50%  2.75%  2/11/2028   1,500,000   1,496,250   1,496,250 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20)  Loan  3M USD LIBOR+  3.75%  1.00%  4.75%  4/30/2024   2,651,324   2,651,324   2,657,952 
Rexnord LLC Capital Equipment Term Loan (11/19)  Loan  1M USD LIBOR+  1.75%  0.00%  1.86%  8/21/2024   862,069   862,069   860,724 
Reynolds Consumer Products LLC Containers, Packaging & Glass Reynolds Consumer Products T/L  Loan  1M USD LIBOR+  1.75%  0.00%  1.86%  1/29/2027   1,306,932   1,305,639   1,307,912 
Reynolds Group Holdings Inc. Metals & Mining Term Loan B2  Loan  1M USD LIBOR+  3.25%  0.00%  3.36%  2/5/2026   2,000,000   1,986,099   1,991,660 
Robertshaw US Holding Corp. Consumer goods: Durable Term Loan B  Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  2/28/2025   972,500   970,927   916,581 
Rocket Software, Inc. High Tech Industries Term Loan (11/18)  Loan  1M USD LIBOR+  4.25%  0.00%  4.36%  11/28/2025   2,935,063   2,925,286   2,939,114 
RP Crown Parent, LLC High Tech Industries Term Loan B (07/20)  Loan  1M USD LIBOR+  3.00%  1.00%  4.00%  1/31/2026   1,990,000   1,981,157   1,992,488 
Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20)  Loan  6M USD LIBOR+  3.00%  1.00%  4.00%  6/2/2025   5,637,965   5,591,015   5,648,565 
RV Retailer LLC Automotive RVR Dealership Holdings T/L (RV Retailer)  Loan  3M USD LIBOR+  4.00%  0.75%  4.75%  1/28/2028   2,000,000   1,980,404   1,992,500 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan  Loan  1M USD LIBOR+  3.25%  0.75%  4.00%  9/1/2027   498,750   491,823   499,373 
Sally Holdings LLC Retail Term Loan B  Loan  1M USD LIBOR+  2.25%  0.00%  2.37%  7/5/2024   768,409   766,247   768,409 
Samsonite International S.A. Consumer goods: Non-durable Term Loan B2  Loan  1M USD LIBOR+  4.50%  1.00%  5.50%  4/25/2025   995,000   968,936   1,002,463 
Savage Enterprises, LLC Energy: Oil & Gas Term Loan B (02/20)  Loan  1M USD LIBOR+  3.00%  0.00%  3.12%  8/1/2025   1,769,504   1,754,769   1,771,999 


Issuer Name Industry Asset
Name		 Asset
Type		  Reference Rate/Spread LIBOR Floor  Current Rate
(All In)		  Maturity Date  Principal/ Number of Shares  Cost  Fair Value 
Schweitzer-Mauduit International, Inc. High Tech Industries Schweitzer-Mauduit T/L B  Loan  1M  USD LIBOR+  4.00%  0.75%  4.75%  1/27/2028   1,000,000   990,000   997,500 
Seadrill Operating LP (b) Energy: Oil & Gas PIK Revolver  Loan  1M USD LIBOR+  0.00%  1.00%  1.00%  3/31/2021   25,683   25,656   27,224 
Seadrill Operating LP (b) Energy: Oil & Gas Term Loan B  Loan  1M USD LIBOR+  8.00%  1.00%  9.00%  3/31/2021   897,442   897,442   86,379 
Shutterfly Inc Media: Advertising, Printing & Publishing Term Loan B  Loan  3M USD LIBOR+  6.00%  1.00%  7.00%  9/25/2026   800,968   767,474   803,403 
Sirius Computer Solutions, Inc. High Tech Industries Term Loan 1/20  Loan  1M USD LIBOR+  3.50%  0.00%  3.61%  7/1/2026   1,970,100   1,966,584   1,970,809 
SMG US Midco 2, Inc. Services: Business Term Loan (01/20)  Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  1/23/2025   495,000   495,000   470,869 
Sotheby’s Services: Business Term Loan (1/21)  Loan  3M USD LIBOR+  4.75%  0.75%  5.50%  1/15/2027   3,289,283   3,230,819   3,312,571 
Specialty Pharma III Inc. Services: Business Term Loan  Loan  1M USD LIBOR+  4.50%  0.75%  5.25%  2/24/2028   2,000,000   1,980,000   1,980,000 
Spectrum Brands, Inc. Consumer goods: Durable Spectrum Brands T/L (2/21)  Loan  1M USD LIBOR+  2.00%  0.50%  2.50%  2/19/2028   500,000   498,750   501,250 
SRAM, LLC Consumer goods: Durable Term Loan  Loan  1M USD LIBOR+  2.75%  1.00%  3.75%  3/15/2024   2,221,329   2,219,239   2,225,505 
SS&C Technologies, Inc. Services: Business Term Loan B4  Loan  1M USD LIBOR+  1.75%  0.00%  1.86%  4/16/2025   178,883   178,618   178,212 
SS&C Technologies, Inc. Services: Business Term Loan B-5  Loan  1M USD LIBOR+  1.75%  0.00%  1.86%  4/16/2025   488,567   487,746   486,735 
SS&C Technologies, Inc. Services: Business Term Loan B3  Loan  1M USD LIBOR+  1.75%  0.00%  1.86%  4/16/2025   234,915   234,561   234,034 
Staples, Inc. Wholesale Term Loan (03/19)  Loan  3M USD LIBOR+  5.00%  0.00%  5.21%  4/16/2026   4,431,567   4,285,772   4,340,853 
Stats LLC Hotel, Gaming & Leisure Term Loan  Loan  3M USD LIBOR+  5.25%  0.00%  5.45%  7/10/2026   1,980,000   1,940,067   1,972,575 
Storable, Inc High Tech Industries Term Loan B  Loan  1M USD LIBOR+  3.25%  0.50%  3.75%  2/26/2028   500,000   498,750   500,000 
Syncsort Incorporated High Tech Industries Term Loan (1/21)  Loan  3M USD LIBOR+  4.75%  0.75%  5.50%  8/16/2024   1,935,450   1,922,522   1,939,476 
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan  Loan  1M USD LIBOR+  5.25%  1.00%  6.25%  7/15/2025   2,468,750   2,392,146   2,471,836 
Tenneco Inc Capital Equipment Term Loan B  Loan  1M USD LIBOR+  3.00%  0.00%  3.11%  10/1/2025   1,470,000   1,459,901   1,440,233 
Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan  Loan  1M USD LIBOR+  4.00%  1.00%  5.00%  9/27/2024   1,940,000   1,938,385   1,841,390 
The Octave Music Group, Inc (Touchtunes) Services: Business Term Loan B  Loan  1M USD LIBOR+  5.25%  1.00%  6.25%  5/29/2025   3,896,552   3,862,705   3,584,828 
Thor Industries, Inc. Automotive Term Loan (USD)  Loan  1M USD LIBOR+  3.75%  0.00%  3.88%  2/1/2026   2,935,080   2,874,260   2,937,839 
Tivity Health, Inc. Healthcare & Pharmaceuticals Term Loan A  Loan  1M USD LIBOR+  4.25%  0.00%  4.36%  3/7/2024   558,772   555,085   556,677 
Tivity Health, Inc. Healthcare & Pharmaceuticals Term Loan B  Loan  1M USD LIBOR+  5.25%  0.00%  5.36%  3/6/2026   1,064,955   1,044,356   1,060,461 
Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21)  Loan  1M USD LIBOR+  3.50%  0.75%  4.25%  8/18/2027   500,000   493,032   501,565 


Issuer Name Industry Asset
Name		 Asset
Type		  Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/ Number of Shares  Cost  Fair Value 
Transdigm, Inc. Aerospace & Defense Term Loan G (02/20)  Loan  1M USD LIBOR+  2.25%  0.00%  2.36%  8/22/2024   4,065,230   4,068,753   4,014,415 
Travel Leaders Group, LLC Hotel, Gaming & Leisure Term Loan B (08/18)  Loan  1M USD LIBOR+  4.00%  0.00%  4.11%  1/25/2024   2,437,500   2,435,050   2,268,411 
TRC Companies, Inc. Services: Business Term Loan  Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  6/21/2024   3,315,141   3,307,088   3,311,826 
TRC Companies, Inc. Services: Business TRC Companies T/L (1/21)  Loan  1M USD LIBOR+  4.50%  0.75%  5.25%  6/21/2024   2,479,433   2,468,047   2,485,631 
Trico Group LLC Automotive Term Loan B-3  Loan  3M USD LIBOR+  7.50%  1.00%  8.50%  2/2/2024   5,070,478   4,962,793   5,150,338 
Trident LS Merger Sub Corporation Services: Consumer Term Loan (03/18)  Loan  1M USD LIBOR+  3.25%  0.00%  3.36%  5/1/2025   2,000,000   2,004,987   1,999,500 
Truck Hero, Inc. Transportation: Cargo Term Loan (1/21)  Loan  1M USD LIBOR+  3.75%  0.75%  4.50%  1/29/2028  ��1,500,000   1,500,000   1,501,065 
TruGreen Limited Partnership Services: Consumer Term Loan  Loan  1M USD LIBOR+  4.00%  0.75%  4.75%  10/29/2027   973,980   966,347   980,068 
Twin River Worldwide Holdings, Inc. Hotel, Gaming & Leisure Term Loan B  Loan  3M USD LIBOR+  2.75%  0.00%  3.00%  5/10/2026   985,000   981,152   975,889 
Uber Technologies T/L B (2/21) Transportation: Consumer Term Loan  Loan  1M USD LIBOR+  3.50%  0.00%  3.62%  7/13/2023   1,989,610   1,941,468   1,992,097 
Ultimate Software Group, Inc. (The) High Tech Industries Term Loan 1/21  Loan  3M USD LIBOR+  3.25%  0.75%  4.00%  5/4/2026   1,000,000   1,000,000   1,005,690 
Unimin Corporation Metals & Mining Term Loan (12/20)  Loan  3M USD LIBOR+  4.00%  1.00%  5.00%  7/31/2026   496,815   466,608   476,232 
United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B  Loan  1M USD LIBOR+  3.50%  0.00%  3.61%  10/22/2025   1,973,611   1,879,449   1,978,545 
United Road Services Inc. Transportation: Cargo Term Loan (10/17)  Loan  6M USD LIBOR+  5.75%  1.00%  6.75%  9/1/2024   952,506   944,697   880,592 
Univar Inc. Chemicals, Plastics, & Rubber Term Loan B3 (11/17)  Loan  1M USD LIBOR+  2.25%  0.00%  2.36%  7/1/2024   1,627,723   1,623,316   1,628,602 
Univision Communications Inc. Media: Broadcasting & Subscription 2020 Replacement Term Loan  Loan  1M USD LIBOR+  3.75%  1.00%  4.75%  3/13/2026   2,517,037   2,508,528   2,527,433 
US Ecology, Inc. Environmental Industries Term Loan B  Loan  1M USD LIBOR+  2.50%  0.00%  2.61%  11/2/2026   495,000   494,095   496,445 
Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B  Loan  1M USD LIBOR+  3.00%  0.00%  3.11%  1/13/2028   100,000   99,764   100,464 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18)  Loan  3M USD LIBOR+  4.00%  0.00%  4.18%  8/20/2025   1,396,606   1,389,850   1,362,571 
VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan B  Loan  1M USD LIBOR+  3.00%  0.00%  3.11%  3/1/2026   3,209,493   3,199,747   3,215,526 
Virence Intermediate Holdings LLC (Athenahealth / VVC Holding) Healthcare & Pharmaceuticals Athenahealth T/L B (01/21)  Loan  3M USD LIBOR+  4.25%  0.00%  4.45%  2/11/2026   3,965,000   3,935,495   3,986,570 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B  Loan  6M USD LIBOR+  2.25%  0.75%  3.00%  6/3/2024   2,406,176   2,405,891   2,407,692 
Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan  Loan  1M USD LIBOR+  1.75%  0.00%  1.86%  12/31/2025   917,338   916,645   913,751 
Vizient, Inc Healthcare & Pharmaceuticals Term Loan B-6  Loan  1M USD LIBOR+  2.00%  0.00%  2.11%  5/6/2026   491,250   490,388   490,430 
VM Consolidated, Inc. Construction & Building Term Loan B1 (02/20)  Loan  1M USD LIBOR+  3.25%  0.00%  3.36%  2/28/2025   475,444   473,957   475,344 
Vouvray US Finance LLC High Tech Industries Term Loan  Loan  1M USD LIBOR+  3.00%  1.00%  4.00%  3/11/2024   481,250   481,250   417,605 


Issuer Name Industry Asset
Name		 Asset
Type		  Reference Rate/Spread LIBOR Floor  Current Rate (All In)  Maturity Date  Principal/ Number of Shares  Cost  Fair Value 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G  Loan  1M USD  LIBOR+  2.13%  0.00%  2.24%  1/20/2028   250,000   249,702   250,403 
Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries Term Loan (3/18)  Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  3/15/2025   494,911   492,859   492,436 
WeddingWire, Inc. Services: Consumer Term Loan  Loan  2M USD LIBOR+  4.50%  0.00%  4.66%  12/19/2025   3,920,000   3,914,114   3,875,900 
West Corporation Telecommunications Term Loan B  Loan  1M USD LIBOR+  3.50%  1.00%  4.50%  10/10/2024   2,931,109   2,874,412   2,866,742 
West Corporation Telecommunications Term Loan B (Olympus Merger)  Loan  3M USD LIBOR+  4.00%  1.00%  5.00%  10/10/2024   1,224,748   1,166,274   1,207,062 
Western Dental Services, Inc. Retail Term Loan (12/18)  Loan  1M USD LIBOR+  5.25%  1.00%  6.25%  6/30/2023   424,019   424,421   416,598 
Western Digital Corporation High Tech Industries Term Loan B-4  Loan  1M USD LIBOR+  1.75%  0.00%  1.86%  4/29/2023   743,135   732,963   742,867 
Wirepath LLC Consumer goods: Non-durable Term Loan  Loan  3M USD LIBOR+  4.00%  0.00%  4.25%  8/5/2024   2,925,193   2,906,978   2,897,170 
WP CITYMD BIDCO LLC Services: Consumer Term Loan B (1/21)  Loan  6M USD LIBOR+  3.75%  0.75%  4.50%  8/13/2026   3,465,000   3,437,657   3,471,791 
Xperi Corporation High Tech Industries Term Loan  Loan  1M USD LIBOR+  4.00%  0.00%  4.11%  6/1/2025   2,854,798   2,706,612   2,874,439 
Zekelman Industries, Inc. Metals & Mining Term Loan (01/20)  Loan  1M USD LIBOR+  2.00%  0.00%  2.11%  1/25/2027   970,775   970,775   968,551 
                                $595,249,474  $592,020,041 

 

  Number of Shares  Cost  Fair Value 
Cash and cash equivalents         
U.S. Bank Money Market (c)  114,145,406  $114,145,406  $114,145,406 
Total cash and cash equivalents  114,145,406  $114,145,406  $114,145,406 

 

(a)All or a portion of this investment has an unfunded commitment as of February 28, 2021
(b)As of February 28, 2021, the investment was in default and on non-accrual status.
(c)Included within cash and cash equivalents in Saratoga CLO’s Statements of Assets and Liabilities as of February 28, 2021.

 

LIBOR—London Interbank Offered Rate

 

1W USD LIBOR—The 1 week USD LIBOR rate as of February 28, 2021 was 0.09%.

1M USD LIBOR—The 1 month USD LIBOR rate as of February 28, 2021 was 0.12%.

2M USD LIBOR—The 2 month USD LIBOR rate as of February 28, 2021 was 0.15%.

3M USD LIBOR—The 3 month USD LIBOR rate as of February 28, 2021 was 0.19%.

6M USD LIBOR—The 6 month USD LIBOR rate as of February 28, 2021 was 0.20%.

12M USD LIBOR - The 12 month USD LIBOR rate as of February 28, 2021 was 0.28%

3M PL WIBOR - The 3 month PL WIBOR rate as of February 28, 2021, was 0.21%

Prime—The Prime Rate as of February 28, 2021 was 3.25%.

 


50

Note 5. Income Taxes

 

SIA-Avionte, Inc., SIA-AX., SIA-GH Inc., SIA-MAC, Inc., SIA-PEP Inc., SIA-PP Inc., SIA-TG, Inc., SIA-TT, Inc., SIA-Vector, Inc., and SIA-VR, Inc., each 100% owned by the Company, are each filing standalone C Corporation tax returns for federal and state income tax purposes. As separately regarded entities for tax purposes, these entities are taxed at normal corporate rates. For tax purposes, any distributions by the entities to the parent company would generally need to be distributed to the Company’s shareholders. Generally, such distributions of the entities’ income to the Company’s shareholders will be considered as qualified dividends for tax purposes. The entities’ taxable net income will differ from U.S. GAAP net income because of deferred tax temporary differences arising from net operating losses and unrealized appreciation and deprecation of securities held. Deferred tax assets and liabilities are measured using enacted corporate federal and state tax rates expected to apply to taxable income in the years in which those net operating losses are utilized and the unrealized gains and losses are realized. Deferred tax assets and deferred tax liabilities are netted off by entity, as allowed. The recoverability of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of a history of operating losses combined with insufficient projected taxable income or other taxable events in the taxable blockers.

 

The Company may distribute a portion of its realized net long term capital gains in excess of realized net short term capital losses to its stockholders, but may also decide to retain a portion, or all, of its net capital gains and elect to pay the 21% U.S. federal tax on the net capital gain, potentially in the form of a “deemed distribution” to its stockholders. Income tax (provision) relating to an election to retain its net capital gains, including in the form of a deemed distribution, is included as a component of income tax (provision) benefit from realized gains on investments, depending on the character of the underlying taxable income (ordinary or capital gains), on the consolidated statements of operations.

 

Deferred tax assets and liabilities, and related valuation allowance as of May 31,November 30, 2021 and February 28, 2021 were as follows:

 

 May 31, 2021  February 28, 2021  November 30,
2021		  February 28,
2021		 
Total deferred tax assets $2,144,029  $2,108,556  $2,115,306  $2,108,556 
Total deferred tax liabilities  (2,217,264)  (1,987,120)  (1,065,509)  (1,987,120)
Valuation allowance on net deferred tax assets  (2,107,492)  (2,044,100)  (2,103,360)  (2,044,100)
Net deferred tax liability $(2,180,727) $(1,922,664) $(1,053,564) $(1,922,664)

 

As of May 31,November 30, 2021, the valuation allowance on deferred tax assets was $2.1 million, which represents the federal and state tax effect of net operating losses and unrealized losses that we do not believe we will realize through future taxable income. Any adjustments to the Company’s valuation allowance will depend on estimates of future taxable income and will be made in the period such determination is made.

 

Net income tax expense for the three months ended November 30, 2021 includes $2.5 million deferred tax benefit on net change in unrealized appreciation on investments, $2.4 million income tax provision from realized gain on investments and $(0.04) million net change in total operating expense, in the consolidated statement of operations, respectively. Net deferred tax (benefit) expense for the three months ended May 31, 2021November 30, 2020 includes $0.2 million net change in unrealized appreciation (depreciation) on investments and $0.0 million net change in total operating expense, in the consolidated statement of operations, respectively.

Net income tax expense for the nine months ended November 30, 2021 includes $0.9 million deferred tax benefit on net change in unrealized appreciation on investments, $2.9 million income tax provision from realized gain on investments and $0.02 million net change in total operating expense, in the consolidated statement of operations, respectively. Net deferred tax (benefit) expense for the threenine months ended May 31,November 30, 2020 includes $(0.3)$0.1 million net change in unrealized appreciation (depreciation) on investments and $(0.01)$0.0 million net change in total operating expense, in the consolidated statement of operations, respectively.

 

Deferred tax temporary differences may include differences for state taxes and joint venture interests.

 

Federal and state income tax provisions (benefits) on investments for three and nine months ended May 31,November 30, 2021 and May 31,November 30, 2020:

 

 For the three months ended  For the three months ended  For the nine months ended 
 May 31, 2021  May 31, 2020  November 30,
2021		  November 30,
2020		  November 30,
2021		  November 30,
2020		 
Current                 
Federal $-  $-  $2,157,212  $-  $2,583,041  $- 
State  -   -   289,961   -   340,655   - 
Net current expense  -   -   2,447,173   -   2,923,696   - 
Deferred                        
Federal  (127,850)  (245,474)  (1,916,842)  195,652   (677,986)  24,814 
State  (130,213)  (31,211)  (604,143)  44,153   (253,182)  62,328 
Net deferred expense  (258,063)  (276,685)  (2,520,985)  239,805   (931,168)  87,142 
Net tax provision $(258,063) $(276,685) $(73,812) $239,805  $1,992,528  $87,142 

 


Note 6. Agreements and Related Party Transactions

 

Investment Advisory and Management Agreement

 

On July 30, 2010, the Company entered into the Management Agreement with our Manager. The initial term of the Management Agreement was two years from its effective date, with automatic, one-year renewals at the end of each year,thereafter subject to certain approvals by our board of directors and/or the Company’s stockholders. OnMost recently, on July 6, 2021, our board of directors approved the renewal of the Management Agreement for an additional one-year term. Pursuant to the Management Agreement, our Manager implements our business strategy on a day-to-day basis and performs certain services for us, subject to oversight by our board of directors. Our Manager is responsible for, among other duties, determining investment criteria, sourcing, analyzing and executing investments transactions, asset sales, financings and performing asset management duties. Under the Management Agreement, we have agreed to pay our Manager a management fee for investment advisory and management services consisting of a base management fee and an incentive management fee.

 

Base Management Fee and Incentive Management Fee

 

The base management fee of 1.75% per year is calculated based on the average value of our gross assets (other than cash or cash equivalents, but including assets purchased with borrowed funds) at the end of the two most recently completed fiscal quarters. The base management fee is paid quarterly following the filing of the most recent 10-Q.

 

The incentive management fee consists of the following two parts:

 

The first, payable quarterly in arrears, equals 20.0% of our pre-incentive fee net investment income, expressed as a rate of return on the value of our net assets at the end of the immediately preceding quarter, that exceeds a 1.875% quarterly hurdle rate measured as of the end of each fiscal quarter, subject to a “catch-up” provision. Under this provision, in any fiscal quarter, our Manager receives no incentive fee unless our pre-incentive fee net investment income exceeds the hurdle rate of 1.875%. Our Manager will receive 100.0% of pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than or equal to 2.344% in any fiscal quarter; and 20.0% of the amount of our pre-incentive fee net investment income, if any, that exceeds 2.344% in any fiscal quarter. There is no accumulation of amounts on the hurdle rate from quarter to quarter, and accordingly there is no claw back of amounts previously paid if subsequent quarters are below the quarterly hurdle rate, and there is no delay of payment if prior quarters are below the quarterly hurdle rate.

 

The second part of the incentive fee is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Management Agreement) and equals 20.0% of our “incentive fee capital gains,” which equals our realized capital gains on a cumulative basis from May 31, 2010 through the end of the fiscal year, if any, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis on each investment in the Company’s portfolio, less the aggregate amount of any previously paid capital gain incentive fee. Importantly, the capital gains portion of the incentive fee is based on realized gains and realized and unrealized losses from May 31, 2010. Therefore, realized and unrealized losses incurred prior to such time will not be taken into account when calculating the capital gains portion of the incentive fee, and our Manager will be entitled to 20.0% of incentive fee capital gains that arise after May 31, 2010. In addition, for the purpose of the “incentive fee capital gains” calculations, the cost basis for computing realized gains and losses on investments held by us as of May 31, 2010 will equal the fair value of such investments as of such date.

 

For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the Company incurred $2.8$2.9 million and $2.2$2.3 million in base management fees, respectively. For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the Company incurred $1.6$1.5 million and $1.4$1.2 million in incentive fees related to pre-incentive fee net investment income, respectively. For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the Company accrued an expense of $3.7$0.9 million and an expense of $(3.3)$1.1 million in incentive fees related to capital gains.

 

For the nine months ended November 30, 2021 and November 30, 2020, the Company incurred $8.7 million and $6.7 million in base management fees, respectively. For the nine months ended November 30, 2021 and November 30, 2020, the Company incurred $4.8 million and $4.0 million in incentive fees related to pre-incentive fee net investment income, respectively. For the nine months ended November 30, 2021 and November 30, 2020, the Company accrued an expense of $4.9 million and an (benefit) of $(2.0) million in incentive fees related to capital gains.


The accrual is calculated using both realized and unrealized capital gains for the period. The actual incentive fee related to capital gains will be determined and payable in arrears at the end of the fiscal year and will include only realized capital gains for the period. As of May 31,November 30, 2021, the base management fees accrual was $2.8$3.0 million and the incentive fees accrual was $3.7$9.2 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities. As of February 28, 2021, the base management fees accrual was $2.4 million and the incentive fees accrual was $13.8 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities.

 


Administration Agreement

 

On July 30, 2010, the Company entered into a separate administration agreement (the “Administration Agreement”) with our Manager, pursuant to which our Manager, as our administrator, has agreed to furnish us with the facilities and administrative services necessary to conduct our day-to-day operations and provide managerial assistance on our behalf to those portfolio companies to which we are required to provide such assistance. The initial term of the Administration Agreement was two years from its effective date, with automatic, one-year renewals at the end of each yearthereafter subject to certain approvals by our board of directors and/or our stockholders. The amount of expenses payable or reimbursable thereunder by the Company was capped at $1.0 million for the initial two-year term of the Administration Agreement and subsequent renewals. On July 8, 2015, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company thereunder, which had not been increased since the inception of the agreement, to $1.3 million. On July 7, 2016, our board of directors approved the renewal of the Administration Agreement for an additional one-year term. On October 5, 2016, our board of directors determined to increase the cap on the payment or reimbursement of expenses by the Company under the Administration Agreement, from $1.3 million to $1.5 million, effective November 1, 2016. On July 11, 2017, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $1.5 million to $1.75 million, effective August 1, 2017. On July 9, 2018, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $1.75 million to $2.0 million, effective August 1, 2018. On July 9, 2019, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $2.0 million to $2.225 million effective August 1, 2019. On July 7, 2020, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $2.225 million to $2.775 million effective August 1, 2020. On July 6, 2021, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $2.775 million to $3.0 million effective August 1, 2021.

 

For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, we recognized $0.8 million and $0.7 million in administrator expenses, respectively, pertaining to bookkeeping, record keeping and $0.6other administrative services provided to us in addition to our allocable portion of rent and other overhead related expenses. For the nine months ended November 30, 2021 and November 30, 2020, we recognized $2.2 million and $1.9 million in administrator expenses, respectively, pertaining to bookkeeping, record keeping and other administrative services provided to us in addition to our allocable portion of rent and other overhead related expenses. As of May 31,November 30, 2021, $0.7$0.2 million of administrator expenses were accrued and included in due to manager in the accompanying consolidated statements of assets and liabilities. As of February 28, 2021, $0.3 million of administrator expenses were accrued and included in due to manager in the accompanying consolidated statements of assets and liabilities.

 

Saratoga CLO

 

On August 7, 2018, the Company entered into an unsecured loan agreement with CLO 2013-1 Warehouse, a wholly-ownedwholly owned subsidiary of Saratoga CLO, pursuant to which CLO 2013-1 Warehouse may borrow from time to time up to $25 million from the Company in order to provide capital necessary to support warehouse activities. The CLO 2013-1 Warehouse Loan, which expired on February 7, 2020, bearsbore interest at an annual rate of 3M USD LIBOR + 7.5%.

 

On December 14, 2018, the Company completed the third refinancing and issuance of the 2013-1 Reset CLO Notes. This refinancing, among other things, extended the Saratoga CLO reinvestment period to January 2021, and extended its legal maturity to January 2030. A non-call period ending January 2020 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $300 million in assets to approximately $500 million. As part of this refinancing and upsizing, the Company invested an additional $13.8 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $2.5 million in aggregate principal amount of the Class F-R-2 Notes tranche and $7.5 million in aggregate principal amount of the Class G-R-2 Notes tranche at par. Concurrently, the existing $4.5 million of Class F notes and $20.0 million CLO 2013-1 Warehouse Loan were repaid. The Company also paid $2.0 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. During the year ended February 29, 2020, the Company received full payment of $1.7 million from the Saratoga CLO for such transaction costs.

 


In conjunction with the third refinancing and issuance of the 2013-1 Reset CLO Notes on December 14, 2018, the Company is no longer entitled to receive an incentive management fee from Saratoga CLO. See Note 4 for additional information.

 

On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. A non-call period ending February 2022 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. As of MayAt August 31, 2021, there remained anthe outstanding receivable of $2.62.6 million was repaid in full.

On August 9, 2021, the Company exchanged its existing $17.9 million Class F-R-3 Notes for such transaction costs which is presented as due from affiliate on$8.5 million Class F-1-R-3 Notes and $9.4 million Class F-2-R-3 Notes at par. On August 11, 2021, the Company’s consolidated statementCompany sold its Class F-1-R-3 Notes to third parties, resulting in a realized loss of assets and liabilities.$0.1 million.

 

For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, we recognized management fee income of $0.8 million and $0.6 million, respectively, related to the Saratoga CLO.

 

For the threenine months ended May 31,November 30, 2021 and May 31,November 30, 2020, we recognized management fee income of $2.4 million and $1.9 million, respectively, related to the Saratoga CLO.

For the nine months ended November 30, 2021 and November 30, 2020, the Company neither bought nor sold any investments from the Saratoga CLO.

 

Note 7. Borrowings

 

Credit Facility

 

As a BDC, we are only allowed to employ leverage to the extent that our asset coverage, as defined in the 1940 Act, equals at least 200.0%200% after giving effect to such leverage, or, 150% if we obtaincertain requirements under the required approvals from1940 Act are met. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, our independentnon-interested board of directors and/or stockholders, 150.0%approved a minimum asset coverage ratio of 150%. The 150% asset coverage ratio became effective on April 16, 2019. The amount of leverage that we employ at any time depends on our assessment of the market and other factors at the time of any proposed borrowing. Our asset coverage ratio, as defined in the 1940 Act, was 251.0%236.7% as of May 31,November 30, 2021 and 347.1% as of February 28, 2021. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, our non-interested board of directors approved of our becoming subject to a minimum asset coverage ratio of 150.0% under Sections 18(a)(1) and 18(a)(2) of the Investment Company Act, as amended. The 150.0% asset coverage ratio became effective on April 16, 2019.

 

On April 11, 2007, we entered into a $100.0 million revolving securitized credit facility (the “Revolving Facility”). On May 1, 2007, we entered into a $25.7 million term securitized credit facility (the “Term Facility” and, together with the Revolving Facility, the “Facilities”), which was fully drawn at closing. In December 2007, we consolidated the Facilities by using a draw under the Revolving Facility to repay the Term Facility. In response to the market wide decline in financial asset prices, which negatively affected the value of our portfolio, we terminated the revolving period of the Revolving Facility effective January 14, 2009 and commenced a two-year amortization period during which all principal proceeds from the collateral were used to repay outstanding borrowings. A significant percentage of our total assets had been pledged under the Revolving Facility to secure our obligations thereunder. Under the Revolving Facility, funds were borrowed from or through certain lenders and interest was payable monthly at the greater of the commercial paper rate and our lender’s prime rate plus 4.00% plus a default rate of 2.00% or, if the commercial paper market was unavailable, the greater of the prevailing LIBOR rates and our lender’s prime rate plus 6.00% plus a default rate of 3.00%.

 

On July 30, 2010, we used the net proceeds from (i) the stock purchase transaction and (ii) a portion of the funds available to us under the $45.0 million senior secured revolving credit facility with Madison Capital Funding LLC (the “Credit“Madison Credit Facility”), in each case, to pay the full amount of principal and accrued interest, including default interest, outstanding under the Revolving Facility. As a result, the Revolving Facility was terminated in connection therewith. Substantially all of our total assets, other than those held by SBIC LP have beenand SBIC II LP, was pledged under the Madison Credit Facility to secure our obligations thereunder.

 


On February 24, 2012, we amended the Madison Credit Facility to, among other things:

 

●expand the borrowing capacity under the Madison Credit Facility from $40.0 million to $45.0 million;

 

●extend the period during which we may make and repay borrowings under the Madison Credit Facility from July 30, 2013 to February 24, 2015 (the “Revolving Period”). The Revolving Period may, upon the occurrence of an event of default, by action of the lenders or automatically, be terminated. All borrowings and other amounts payable under the Madison Credit Facility are due and payable five years after the end of the Revolving Period; and

 

●remove the condition that we may not acquire additional loan assets without the prior written consent of Madison Capital Funding LLC.

 

On September 17, 2014, we entered into a second amendment to the Madison Credit Facility to, among other things:

 

●extend the commitment termination date from February 24, 2015 to September 17, 2017;

 

●extend the maturity date of the Madison Credit Facility from February 24, 2020 to September 17, 2022 (unless terminated sooner upon certain events);

 

●reduce the applicable margin rate on base rate borrowings from 4.50% to 3.75%, and on LIBOR borrowings from 5.50% to 4.75%; and

 

●reduce the floor on base rate borrowings from 3.00% to 2.25%, and on LIBOR borrowings from 2.00% to 1.25%.

 

On May 18, 2017, we entered into a third amendment to the Madison Credit Facility to, among other things:

 

●extend the commitment termination date from September 17, 2017 to September 17, 2020;

 

●extend the final maturity date of the Madison Credit Facility from September 17, 2022 to September 17, 2025 (unless terminated sooner upon certain events);

 

●reduce the floor on base rate borrowings from 2.25% to 2.00%;

 

●reduce the floor on LIBOR borrowings from 1.25% to 1.00%; and

 

●reduce the commitment fee rate from 0.75% to 0.50% for any period during which the ratio of advances outstanding to aggregate commitments, expressed as a percentage, is greater than or equal to 50%.

 

On April 24, 2020, we entered into a fourth amendment to the Madison Credit Facility to, among other things:

 

●permit certain amendments related to the Paycheck Protection Program (“Permitted PPP Amendment”) to Loan Asset Documents;

 

●exclude certain debt and interest amounts allowed by the Permitted PPP Amendments from certain calculations related to Net Leverage Ratio, Interest Coverage Ratio and EBITDA; and

 

●exclude such Permitted PPP Amendments from constituting a Material Modification.

 

On September 14, 2020, we entered into a fifth amendment to the Madison Credit Facility to, among other things:

 

●extend the commitment termination date of the Madison Credit Facility from September 17, 2020 to September 17, 2021, with no change to the maturity date of September 17, 2025.

 

●provide for the transition away from the LIBOR Rate in the market, and

 

●expand the definition of “Eligible Loan Asset” to allow investments with certain recurring revenue features to qualify as Collateral and be included in the borrowing base.

 

On September 13, 2021, we entered into a sixth amendment to the Madison Credit Facility to, among other things:

●Extend the commitment termination date of the Madison Credit Facility from September 17, 2021 to October 1, 2021, with no change to maturity date of September 17, 2025.


On October 4, 2021, all outstanding amounts on the Madison Credit Facility were repaid and the Madison Credit Facility was terminated. The repayment and termination of the Madison Credit Facility resulted in a realized loss on the extinguishment of debt of $0.8 million. 

In addition to any fees or other amounts payable under the terms of the Madison Credit Facility, an administrative agent fee per annum equal to $0.1 million is payable in equal monthly installments in arrears.

On October 4, 2021, the Company entered into a $50.0 million senior secured revolving credit facility with Encina Lender Finance, LLC (the “Lender”), supported by loans held by SIF II and pledged to the Lender under the credit facility. During the first two years following the closing date, SIF II may request an increase in the commitment amount to up to $75.0 million. The terms of the Encina Credit Facility require a minimum drawn amount of $12.5 million at all times during the first six months following the closing date, which increases to the greater of $25.0 million or 50% of the commitment amount in effect at any time thereafter. The term of the Encina Credit Facility is three years. Advances under the Encina Credit Facility bear interest at a floating rate per annum equal to LIBOR plus 4.0%, with LIBOR having a floor of 0.75%, with customary provisions related to the selection by the Lender and the Company of a replacement benchmark rate. The commitment termination date is October 4, 2024.

In addition to any fees or other amounts payable under the terms of the Encina Credit Facility, an administrative agent fee per annum equal to $0.1 million is payable in equal monthly installments in arrears.

 

As of May 31,November 30, 2021 and February 28, 2021, there were $39.0$12.5 million and $0.0 million respectively, borrowedoutstanding under the Encina Credit Facility. As of November 30, 2021 and February 28, 2021, there were no amounts outstanding under the Madison Credit Facility. During the applicable periods, the Company was in compliance with all of the limitations and requirements of the Credit Facility.both facilities. Financing costs of $3.4$1.4 million related to the Encina Credit Facility have been capitalized and are being amortized over the term of the facility.

 

For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, we recorded $0.2 million and $0.1 million of interest expense related to the Encina Credit Facility and the Madison Credit Facility, respectively, which includes commitment and administrative agent fees. For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, we recorded $0.04$0.08 million and $0.02$0.03 million of amortization of deferred financing costs related to the Encina Credit Facility and the Madison Credit Facility, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended May 31,November 30, 2021, the weighted average interest rate on the outstanding borrowings under the Encina Credit Facility and the Madison Credit Facility was 6.37%4.94%, and the average dollar amount of outstanding borrowings under the Encina Credit Facility and the Madison Credit Facility was $4.1$9.2 million.

For the nine months ended November 30, 2021 and November 30, 2020, we recorded $0.6 million and $0.3 million of interest expense related to the Encina Credit Facility and the Madison Credit Facility, respectively, which includes commitment and administrative agent fees. For the nine months ended November 30, 2021 and November 30, 2020, we recorded $0.2 million and $0.08 million of amortization of deferred financing costs related to the Encina Credit Facility and the Madison Credit Facility, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the nine months ended November 30, 2021, the weighted average interest rate on the outstanding borrowings under the Encina Credit Facility and the Madison Credit Facility was 5.47%, and the average dollar amount of outstanding borrowings under the Encina Credit Facility and the Madison Credit Facility was $7.4 million.

 

The Encina Credit Facility contains limitations as to how borrowed funds may be used, such as restrictions on industry concentrations, asset size, weighted average life, currency denomination and collateral interests. The Encina Credit Facility also includes certain requirements relating to portfolio performance, the violation of which could result in the limit of further advances and, in some cases, result in an event of default, allowing the lenders to accelerate repayment of amounts owed thereunder. The Encina Credit Facility has an eight-year term, consisting of a three-year period (the “Revolving Period”), under which the Company may make and repay borrowings, and a final maturity five years from the end of the Revolving Period.term. Availability on the Encina Credit Facility will be subject to a borrowing base calculation, based on, among other things, applicable advance rates (which vary from 50.0% to 75.0% of par or fair value depending on the type of loan asset) and the value of certain “eligible” loan assets included as part of the Borrowing Base.borrowing base. Funds may be borrowed at the greater of the prevailing one-month LIBOR rate and 1.00%0.75%, plus an applicable margin of 4.75%. At the Company’s option, funds may be borrowed based on an alternative base rate, which in no event will be less than 2.00%, and the applicable margin over such alternative base rate is 3.75%4.00%. In addition, the Company will pay the lenderslender a commitment fee of 0.75% per year (or 0.50% if the ratio of advances outstanding to aggregate commitments is greater than or equal to 50%) on the unused amount of the Encina Credit Facility for the duration of the Revolving Period.Facility.

 

Our borrowing base under the Encina Credit Facility was $51.1$51.2 million subject to the Encina Credit Facility cap of $45.0$50.0 million at May 31,November 30, 2021. For purposes of determining the borrowing base, most assets are assigned the values set forth in our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission (“SEC”). Accordingly, the May 31,November 30, 2021 borrowing base relies upon the valuations set forth in the AnnualQuarterly Report on Form 10-K10-Q for the period ended February 28,August 31, 2021. The valuations presented in this Quarterly Report on Form 10-Q will not be incorporated into the borrowing base until after this Quarterly Report on Form 10-Q is filed with the SEC.


SBA Debentures

 

Our wholly-ownedwholly owned SBIC subsidiaries are able to borrow funds from the SBA against regulatory capital (which generally approximates equity capital) that is paidcapital in respective SBIC) and is subject to customary regulatory requirements, including, but not limited to, ana periodic examination by the SBA.

 

On August 14, 2019, the Company’s wholly-ownedwholly owned subsidiary, SBIC II LP, received an SBIC license from the SBA. The new license provides up to $175.0 million in additional long-term capital in the form of SBA debentures. As a result of the 2016 omnibus spending bill signed into law in December 2015, the maximum amount of SBA-guaranteed debentures that affiliated SBIC funds can have outstanding was increased from $225.0 million to $350.0 million.million, subject to SBA approval. With this license approval, Saratoga can grow its SBA relationship from $150.0 million to $325.0 million of committed capital.

 

As of May 31,November 30, 2021, we have funded SBIC LP and SBIC II LP with an aggregate total of equity capital of $75.0 million and $84.0$87.5 million, respectively, and have $168.0$207.0 million in SBA-guaranteed debentures outstanding, of which $124.0$108.0 million is held in SBIC LP and $44.0$99.0 million held in SBIC II LP. SBA debentures are non-recourse to us, have a 10-year maturity, and may be prepaid at any time without penalty. The interest rate of SBA debentures is fixed at the time of issuance, often referred to as pooling, at a market-driven spread over 10-year U.S. Treasury Notes. SBA current regulations limit the amount that SBIC LP and SBIC II LP may borrow to a maximum of $150.0 million and $175.0 million, respectively, which is up to twice its potential regulatory capital.

 


SBICs are designed to stimulate the flow of private equity capital to eligible small businesses. Under SBA regulations, SBICs may make loans to eligible small businesses and invest in the equity securities of small businesses. Under present SBA regulations, eligible small businesses include businesses that have a tangible net worth not exceeding $19.5 million and have average annual fully taxed net income not exceeding $6.5 million for the two most recent fiscal years. In addition, an SBIC must devote 25.0% of its investment activity to ‘‘smaller’“smaller enterprises’’ concerns as defined by the SBA. A smaller concernenterprise is one that has a tangible net worth not exceeding $6.0 million and has average annual fully taxed net income not exceeding $2.0 million for the two most recent fiscal years. SBA regulations also provide alternative size standard criteria to determine eligibility, which depend on the industry in which the business is engaged and are based on such factors as the number of employees and gross sales. According to SBA regulations, SBICs may make long-term loans to small businesses, invest in the equity securities of such businesses and provide them with consulting and advisory services.

 

SBIC LP and SBIC II LP are subject to regulation and oversight by the SBA, including requirements with respect to maintaining certain minimum financial ratios and other covenants. Receipt of an SBIC license does not assure that SBIC II LP will receive SBA-guaranteed debenture funding, which is dependent upon SBIC II LP continuing to be in compliance with SBA regulations and policies. The SBA, as a creditor, will have a superior claim to SBIC LP and SBIC II LP assets over our stockholders and debtholders in the event we liquidate SBIC LP and SBIC II LP or the SBA exercises its remedies under the SBA-guaranteed debentures issued by SBIC LP and SBIC II LP upon an event of default.

 

The Company received exemptive relief from the SEC to permit it to exclude the debt ofsenior securities issued by SBIC subsidiaries guaranteed by the SBA from the definition of senior securities in the asset coverage testrequirement applicable to the Company under the 1940 Act. This allows the Company increased flexibility under the asset coverage testrequirement by permitting it to borrow up to $325.0 million more than it would otherwise be able to absent the receipt of this exemptive relief. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, the non-interested board of directors of the Company approved of the Company becoming subject to a minimum asset coverage ratio of 150.0% from 200% under Sections 18(a)(1) and 18(a)(2) of the Investment Company Act, as amended.1940 Act. The 150.0% asset coverage ratio became effective on April 16, 2019.

 

As noted above, as of May 31,November 30, 2021, there was $168.0$207.0 million of SBA debentures outstanding and as of February 28, 2021, there was $158.0 million of SBA debentures outstanding. The carrying amount of the amount outstanding of SBA debentures approximates its fair value, which is based on a waterfall analysis showing adequate collateral coverage and would be classified as a Level 3 liability within the fair value hierarchy. Financing costs of $5.0 million and $2.5$3.7 million related to the SBA debentures issued by SBIC LP and SBIC II LP, respectively, have been capitalized and are being amortized over the term of the commitment and drawdown.

 

For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, we recorded $1.2$1.1 million and $1.2$1.3 million of interest expense related to the SBA debentures, respectively. For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, we recorded $0.2 million and $0.2 million of amortization of deferred financing costs related to the SBA debentures, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. The weighted average interest rate during the three months ended May 31,November 30, 2021 and May 31,November 30, 2020 on the outstanding borrowings of the SBA debentures was 2.93%2.44% and 3.16%2.97%, respectively. During the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the average dollar amount of SBA debentures outstanding was $158.4$176.6 million and $157.4$170.3 million, respectively.

 

For the nine months ended November 30, 2021 and November 30, 2020, we recorded $3.4 million and $3.8 million of interest expense related to the SBA debentures, respectively. For the nine months ended November 30, 2021 and November 30, 2020, we recorded $0.5 million and $0.5 million of amortization of deferred financing costs related to the SBA debentures, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. The weighted average interest rate during the nine months ended November 30, 2021 and November 30, 2020 on the outstanding borrowings of the SBA debentures was 2.66% and 4.57%, respectively. During the nine months ended November 30, 2021 and November 30, 2020, the average dollar amount of SBA debentures outstanding was $172.0 million and $165.9 million, respectively.


In December 2015, the 2016 omnibus spending bill approved by Congress and signed into law by the President increased the amount of SBA-guaranteed debentures that affiliated SBIC funds can have outstanding from $225.0 million to $350.0 million, subject to SBA approval. SBA regulations previously limited the amount of SBA-guaranteed debentures that an SBIC may issue to $150.0 million when it has at least $75.0 million in regulatory capital but this has increased to $175.0 million for new licenses when it has at least $87.5 million in regulatory capital. Affiliated SBICs are permitted to issue up to a combined maximum amount of $350.0 million in SBA-guaranteed debentures when they have at least $175.0 million in combined regulatory capital.

 

Notes

 

In May 10, 2013, the Company issued $48.3 million in aggregate principal amount of 7.50% fixed-rate notes due 2020 (the “2020 Notes”). The 2020 Notes were redeemed in full on January 13, 2017 and are no longer listed on the NYSE.

 


On May 29, 2015, the Company entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which the Company may offer for sale, from time to time, up to $20.0 million in aggregate principal amount of the 2020 Notes through an At-the-Market (“ATM”) offering. Prior to the 2020 Notes being redeemed in full, the Company had sold 539,725 bonds with a principal of $13.5 million at an average price of $25.31 for aggregate net proceeds of $13.4 million (net of transaction costs).

 

On December 21, 2016, the Company issued $74.5 million in aggregate principal amount of our 6.75% fixed-rate notes due 2023 (the “2023 Notes”) for net proceeds of $71.7 million after deducting underwriting commissions of approximately $2.3 million and offering costs of approximately $0.5 million. The net proceeds from the offering were used to repay all of the outstanding indebtedness under the 2020 Notes which amounted to $61.8 million,(as described above), and for general corporate purposes in accordance with our investment objective and strategies.

 

On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.5 million, respectively, in aggregate principal amount of the $74.5 million in aggregate principal amount of issued and outstanding 2023 Notes. The 2023 Notes were listed on the NYSE under the trading symbol “SAB” with a par value of $25.00 per share, and have been delisted following the redemption.

 

On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of our 6.25% fixed-rate notes due 2025 (the “6.25% 2025 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.3 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $5.0 million aggregate principal amount of 6.25% 2025 Notes within 30 days. Interest on the 6.25% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning November 30, 2018.year. The 6.25% 2025 Notes mature on August 31, 2025 and commencing August 28, 2021, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes.

 

On February 5, 2019, the Company completed a re-opening and up-sizing of its existing 6.25% 2025 Notes by issuingissued an additional $20.0 million in aggregate principal amount of the 6.25% 2025 Notes for net proceeds of $19.2 million after deducting underwriting commissions of approximately $0.6 million and discount of $0.2 million. Offering costs incurred were approximately $0.2 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $2.5 million aggregate principal amount of 6.25% 2025 Notes within 30 days. Interest rate, interest payment dates and maturity remain unchanged fromThe additional 6.25% 2025 Notes were treated as a single series with the existing 6.25% 2025 Notes issued in August 2018.under the indenture and had the same terms as the existing 6.25% 2025 Notes. The net proceeds from this offering were used for general corporate purposes in accordance with our investment objective and strategies. The financing costs and discount of $1.0 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes.

 

As of MayOn August 31, 2021, the totalCompany redeemed $60.0 million in aggregate principal amount of issued and outstanding 6.25% 2025 Notes outstanding was $60.0 million.at par ($25 per note), plus the accrued and unpaid interest thereon, through, but excluding, the redemption date of August 31, 2021. The 6.25% 2025 Notes arewere listed on the NYSE under the trading symbol of “SAF” with a par valueand have been delisted effective as of $25.00 per share.August 31, 2021, following the full redemption.

 

As of MayAt August 31, 2021, the carrying amountdebt was extinguished. As such, it was not fair valued with market quotes and is not fair value of the 6.25% 2025 Notes was $60.0 million and $60.9 million, respectively. The fair value of the 6.25% 2025 Notes, which are publicly traded, is based upon closing market quotes as of the measurement date and would be classified as a Level 1 liability within the fair value hierarchy.leveled. As of February 28, 2021, the carrying amount and fair value of the 6.25% 2025 Notes was $60.0 million and $61.2 million, respectively. The repayment of the 6.25% 2025 Notes resulted in a realized loss on the extinguishment of debt of $1.5 million.

 

For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, we recorded $0.9$0.0 million and $0.9 million, respectively, of interest expense and $0.1$0.0 million and $0.1 million, respectively, of amortization of deferred financing costs related to the 6.25% 2025 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the average dollar amount of 6.25% 2025 Notes outstanding was $0.00 million and $60.0 million, respectively.


For the nine months ended November 30, 2021 and November 30, 2020, we recorded $1.9 million and $2.8 million, respectively, of interest expense and $0.2 million and $0.3 million, respectively, of amortization of deferred financing costs related to the 6.25% 2025 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the nine months ended November 30, 2021 and November 30, 2020, the average dollar amount of 6.25% 2025 Notes outstanding was $39.3 million and $60.0 million, respectively.

 

As discussed above, during the fourth quarter of 2020 fiscal year, the Company redeemed $74.45 million in aggregate principal amount of issued outstanding 2023 Notes.

 


On June 24, 2020, the Company issued $37.5 million in aggregate principal amount of our 7.25% fixed-rate notes due 2025 (the “7.25% 2025 Notes”) for net proceeds of $36.3 million after deducting underwriting commissions of approximately $1.2 million. Offering costs incurred were approximately $0.3 million. On July 6, 2020, the underwriters exercised their option in full to purchase an additional $5.625 million in aggregate principal amount of its 7.25% 2025 Notes. Net proceeds to the Company were $5.4 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 7.25% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.25% per year, beginning August 31, 2020.year. The 7.25% 2025 Notes mature on June 30, 2025 and commencing June 24, 2022, may be redeemed in whole or in part at any time or from time to time at our option.option on or after June 24, 2022. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 7.25% 2025 Notes have been capitalized and are being amortized over the term of the 7.25% 2025 Notes.

 

As of May 31,November 30, 2021, the total 7.25% 2025 Notes outstanding was $43.1 million. The 7.25% 2025 Notes are listed on the NYSE under the trading symbol “SAK” with a par value of $25.00 per share.

 

As of May 31,November 30, 2021, the carrying amount and fair value of the 7.25% 2025 Notes was $43.1 million and $45.7$44.7 million, respectively. The fair value of the 7.25% 2025 Notes, which are publicly traded, is based upon closing market quotes as of the measurement date and would be classified as a Level 1 liability within the fair value hierarchy. As of February 28, 2021, the carrying amount and fair value of the 7.25% 2025 Notes was $43.1 million and $45.7 million, respectively.

 

For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, we recorded $0.8 million and $0.0$0.8 million, respectively, of interest expense and $0.08 million and $0.0$0.08 million, respectively, of amortization of deferred financing costs related to the 7.25% 2025 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the average dollar amount of the 7.25% 2025 Notes outstanding was $43.1 million and $0.0$43.1 million respectively.

For the nine months ended November 30, 2021 and November 30, 2020, we recorded $2.3 million and $1.4 million, respectively, of interest expense and $0.2 million and $0.1 million, respectively, of amortization of deferred financing costs related to the 7.25% 2025 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the nine months ended November 30, 2021 and November 30, 2020, the average dollar amount of the 7.25% 2025 Notes outstanding was $43.1 million and $43.1 million respectively.

 

On July 9, 2020, the Company issued $5.0 million aggregate principal amount of our 7.75% fixed-rate Notes due in 2025 (the “7.75% Notes 2025”) for net proceeds of $4.8 million after deducting underwriting commissions of approximately $0.2 million. Offering costs incurred were approximately $0.1 million. Interest on the 7.75% Notes 2025 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.75% per year, beginning August 31, 2020.year. The 7.75% Notes 2025 mature on July 9, 2025 and may be redeemed in whole or in part at any time or from time to time at our option.option, subject to a fee depending on the date of repayment. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 7.75% Notes 2025 have been capitalized and are being amortized over the term of the Notes.

 

As of May 31,November 30, 2021, the total 7.75% Notes 2025 outstanding was $5.0 millionmillion. The 7.75% Notes 2025 are not listed and have a par value of $25.00 per share. As of May 31, 2021, there was $5.0 million of 7.75% Notes 2025 outstanding and as of February 28, 2021, there was $5.0 million outstanding. The carrying amount of the amount outstanding of 7.75% Notes 2025 approximates its fair value, which is based on a waterfall analysis showing adequate collateral coverage and would be classified as a Level 3 liability within the fair value hierarchy.

 

For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, we recorded $0.1 million and $0.0$0.1 million, respectively, of interest expense and $0.02$0.01 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 7.75% Notes 2025. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended May 31,November 30, 2021 and May 31,November 30, 2020 the average dollar amount of 7.75% Notes 2025 outstanding was $5.0 million and $0.0$5.0 million respectively.

 

For the nine months ended November 30, 2021 and November 30, 2020, we recorded $0.3 million and $0.2 million, respectively, of interest expense and $0.04 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 7.75% Notes 2025. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the nine months ended November 30, 2021 and November 30, 2020 the average dollar amount of 7.75% Notes 2025 outstanding was $5.0 million and $5.0 million respectively.


On December 29, 2020, the Company issued $5.0 million aggregate principal amount of our 6.25% fixed-rate notes due in 2027 (the “6.25% Notes 2027”). Offering costs incurred were approximately $0.1 million. Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021.year. The 6.25% Notes 2027 mature on December 29, 2027 and may be redeemed in whole or in part at any time or from time to time at our option, on or after December 29, 2024. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.1 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes.

 


On January 28, 2021, the Company issued $10.0 million aggregate principal amount of our 6.25% fixed rate Notes due in 2027 (the “6.25% Notes 2027”) for net proceeds of $9.7 million after deducting underwriting commissions of approximately $0.3 million. Offering costs incurred were approximately $0.0 million. Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021.year. The 6.25% Notes 2027 mature on January 28, 2027 and commencing January 28, 2023, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes.

 

As of May 31,November 30, 2021, the total 6.25% Notes 2027 outstanding was $15.0 millionmillion. The 6.25% Notes 2027 are not listed and have a par value of $25.00 per share. As of May 31, 2021, there was $15.0 million of 6.25% Notes 2027 outstanding and as of February 28, 2021, there was $15.0 million outstanding. The carrying amount of the amount outstanding of 6.25% Notes 2027 approximates its fair value, which is based on a waterfall analysis showing adequate collateral coverage and would be classified as a Level 3 liability within the fair value hierarchy.

 

For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, we recorded $0.2 million and $0.0 million, respectively, of interest expense and $0.02 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 6.25% Notes 2027. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended May 31,November 30, 2021 and May 31,November 30, 2020 the average dollar amount of 6.25% Notes 2027 outstanding was $15.0 million and $0.0 million respectively.

For the nine months ended November 30, 2021 and November 30, 2020, we recorded $0.7 million and $0.0 million, respectively, of interest expense and $0.05 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 6.25% Notes 2027. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the nine months ended November 30, 2021 and November 30, 2020 the average dollar amount of 6.25% Notes 2027 outstanding was $15.0 million and $0.0 million respectively.

 

On March 10, 2021, the Company issued $50.0m$50.0 million aggregate principal amount of our 4.375% fixed-rate Notes due in 2026 (the “4.375% Notes 2026”) for net proceeds of $49.0 million after deducting underwriting commissions of approximately $1.0 million. Offering costs incurred were approximately $0.2 million.  Interest on the 4.375% Notes 2026 is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.375% per year, beginning August 28, 2021. The 4.375% Notes 2026 mature on February 28, 2026 and may be redeemed in whole or in part at any time on or from time to time at the Company’s optionafter November 28, 2025 at par plus a “make-whole” premium, if applicable.and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.2 million related to the 4.375% Notes 2026 have been capitalized and are being amortized over the term of the Notes.

 

On July 15, 2021, the Company issued an additional $125.0 million aggregate principal amount of the Company’s 4.375% Notes 2026 (the “Additional 4.375% 2026 Notes”) for net proceeds for approximately $123.5 million, based on the public offering price of 101.00% of the aggregate principal amount of the Additional 4.375% 2026 Notes, after deducting the underwriting discount of $2.5 million and the estimated offering expenses of approximately $0.2 million payable by the Company. The net proceeds from the offering were used to redeem all of the outstanding 6.25% 2025 Notes (as described above), and for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $2.7 million have been capitalized and are being amortized over the term of the Notes.

As of May 31,November 30, 2021, the total 4.375% Notes 2026 outstanding was $50.0 million$175.0 million. The 4.375% Notes 2026 are not listed and have a par valueare issued in minimum denominations of $25.00 per share.$2,000 and integral multiples of $1,000 in excess thereof. As of May 31, 2021, there was $50.0 million of 4.375% Notes 2026 outstanding and as of February 28, 2021, there was $0.0 million outstanding. The carrying amount of the amount outstanding of 4.375% Notes 2026 approximates its fair value, which is based on a waterfall analysis showing adequate collateral coverage and would be classified as a Level 3 liability within the fair value hierarchy.

 

For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, we recorded $0.5$1.9 million and $0.0 million, respectively, of interest expense, and $0.06$0.1 million and $0.0 million, respectively, of amortization of deferred financing costs related to theand $0.07 million and $0.0 million, respectively, of amortization of premium on issuance of 4.375% Notes 2026.due 2026 (inclusive of the issuance of the Additional 4.375% 2026 Notes). Interest expense, and amortization of deferred financing costs and amortization of premium on issuance of notes are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended May 31,November 30, 2021 and May 31,November 30, 2020 the average dollar amount of 4.375% Notes 2026 outstanding was $50.0$175.0 million and $0.0 million respectively.

For the nine months ended November 30, 2021 and November 30, 2020, we recorded $3.6 million and $0.0 million, respectively, of interest expense, $0.3 million and $0.0 million, respectively, of amortization of deferred financing costs and $0.09 million and $0.0 million, respectively, of amortization of premium on issuance of 4.375% Notes due 2026 (inclusive of the issuance of the Additional 4.375% 2026 Notes). Interest expense, amortization of deferred financing costs and amortization of premium on issuance of notes are reported as interest and debt financing expense on the consolidated statements of operations. During the nine months ended November 30, 2021 and November 30, 2020 the average dollar amount of 4.375% Notes 2026 outstanding was $115.3 million and $0.0 million respectively.

 


Senior Securities

 

Information about our senior securities is shown in the following table as of May 31,November 30, 2021 for the fiscal year periods indicated in the table, unless otherwise noted.

 

SENIOR SECURITIES

(dollar amounts in thousands, except per share data)

 

Class and Year (1)(2) Total Amount Outstanding Exclusive of Treasury Securities(3)  Asset Coverage per Unit(4)  Involuntary Liquidating Preference per Share(5)  Average Market Value per Share(6) 
  (in thousands) 
Credit Facility with Madison Capital Funding                
Fiscal year 2022 (as of May 31, 2021) $39,000  $2,510   -   N/A 
Fiscal year 2021 (as of February 28, 2021) $-  $3,471   -   N/A 
Fiscal year 2020 (as of February 29, 2020) $-  $6,071   -   N/A 
Fiscal year 2019 (as of February 28, 2019) $-  $2,345   -   N/A 
Fiscal year 2018 (as of February 28, 2018) $-  $2,930   -   N/A 
Fiscal year 2017 (as of February 28, 2017) $-  $2,710   -   N/A 
Fiscal year 2016 (as of February 29, 2016) $-  $3,025   -   N/A 
Fiscal year 2015 (as of February 28, 2015) $9,600  $3,117   -   N/A 
Fiscal year 2014 (as of February 28, 2014) $-  $3,348   -   N/A 
Fiscal year 2013 (as of February 28, 2013) $24,300  $5,421   -   N/A 
Fiscal year 2012 (as of February 29, 2012) $20,000  $5,834   -   N/A 
Fiscal year 2011 (as of February 28, 2011) $4,500  $20,077   -   N/A 
Fiscal year 2010 (as of February 28, 2010) $-  $-   -   N/A 
Fiscal year 2009 (as of February 28, 2009) $-  $-   -   N/A 
Fiscal year 2008 (as of February 29, 2008) $-  $-   -   N/A 
Fiscal year 2007 (as of February 28, 2007) $-  $-   -   N/A 
7.50% Notes due 2020(7)                
Fiscal year 2017 (as of February 28, 2017) $-  $-   -   N/A 
Fiscal year 2016 (as of February 29, 2016) $61,793  $3,025   -  $25.24(8)
Fiscal year 2015 (as of February 28, 2015) $48,300  $3,117   -  $25.46(8)
Fiscal year 2014 (as of February 28, 2014) $48,300  $3,348   -  $25.18(8)
Fiscal year 2013 (as of February 28, 2013) $-  $-   -   N/A 
Fiscal year 2012 (as of February 29, 2012) $-  $-   -   N/A 
Fiscal year 2011 (as of February 28, 2011) $-  $-   -   N/A 
Fiscal year 2010 (as of February 28, 2010) $-  $-   -   N/A 
Fiscal year 2009 (as of February 28, 2009) $-  $-   -   N/A 
Fiscal year 2008 (as of February 29, 2008) $-  $-   -   N/A 
Fiscal year 2007 (as of February 28, 2007) $-  $-   -   N/A 
6.75% Notes due 2023(9)                
Fiscal year 2020 (as of February 29, 2020) $-  $-   -   N/A 
Fiscal year 2019 (as of February 28, 2019) $74,451  $2,345   -  $25.74(10)
Fiscal year 2018 (as of February 28, 2018) $74,451  $2,930   -  $26.05(10)
Fiscal year 2017 (as of February 28, 2017) $74,451  $2,710   -  $25.89(10)
6.25% Notes due 2025                
Fiscal year 2022 (as of May 31, 2021) $60,000  $2,510   -  $25.58(11)
Fiscal year 2021 (as of February 28, 2021) $60,000  $3,471      $24.24(11)
Fiscal year 2020 (as of February 29, 2020) $60,000  $6,071   -  $25.75(11)
Fiscal year 2019 (as of February 28, 2019) $60,000  $2,345   -  $24.97(11)
7.25% Notes due 2025                
Fiscal year 2022 (as of May 31, 2021) $43,125  $2,510   -  $26.61(11)
Fiscal year 2021 (as of February 28, 2021) $43,125  $3,471      $25.77(11)
7.75% Notes due 2025                
Fiscal year 2022 (as of May 31, 2021) $5,000  $2,510   -  $25.00(12)
Fiscal year 2021 (as of February 28, 2021) $5,000  $3,471   -  $25.00(12)
4.375% Notes due 2026                
Fiscal year 2022 (as of May 31, 2021) $50,000  $2,510   -  $25.00(12)
6.25 Notes due 2027                
Fiscal year 2022 (as of May 31, 2021) $15,000  $2,510   -  $25.00(12)
Fiscal year 2021 (as of February 28, 2021) $15,000  $3,471   -  $25.00(12)

Class and Year (1)(2) Total Amount Outstanding Exclusive of Treasury Securities(3)  Asset Coverage
per Unit(4)		  Involuntary Liquidating Preference per Share(5)  Average Market Value per Share(6) 
  (in thousands) 
Credit Facility with Encina Lender Finance, LLC            
Fiscal year 2022 (as of November 30, 2021), (unaudited) $12,500  $2,367        -   N/A 
Credit Facility with Madison Capital Funding(14)                
Fiscal year 2022 (as of November 30, 2021), (unaudited) $-  $-   -   N/A 
Fiscal year 2021 (as of February 28, 2021) $-  $3,471   -   N/A 
Fiscal year 2020 (as of February 29, 2020) $-  $6,071   -   N/A 
Fiscal year 2019 (as of February 28, 2019) $-  $2,345   -   N/A 
Fiscal year 2018 (as of February 28, 2018) $-  $2,930   -   N/A 
Fiscal year 2017 (as of February 28, 2017) $-  $2,710   -   N/A 
Fiscal year 2016 (as of February 29, 2016) $-  $3,025   -   N/A 
Fiscal year 2015 (as of February 28, 2015) $9,600  $3,117   -   N/A 
Fiscal year 2014 (as of February 28, 2014) $-  $3,348   -   N/A 
Fiscal year 2013 (as of February 28, 2013) $24,300  $5,421   -   N/A 
Fiscal year 2012 (as of February 29, 2012) $20,000  $5,834   -   N/A 
Fiscal year 2011 (as of February 28, 2011) $4,500  $20,077   -   N/A 
Fiscal year 2010 (as of February 28, 2010) $-  $-   -   N/A 
Fiscal year 2009 (as of February 28, 2009) $-  $-   -   N/A 
Fiscal year 2008 (as of February 29, 2008) $-  $-   -   N/A 
Fiscal year 2007 (as of February 28, 2007) $-  $-   -   N/A 
7.50% Notes due 2020(7)                
Fiscal year 2017 (as of February 28, 2017) $-  $-   -   N/A 
Fiscal year 2016 (as of February 29, 2016) $61,793  $3,025   -  $25.24(8)
Fiscal year 2015 (as of February 28, 2015) $48,300  $3,117   -  $25.46(8)
Fiscal year 2014 (as of February 28, 2014) $48,300  $3,348   -  $25.18(8)
Fiscal year 2013 (as of February 28, 2013) $-  $-   -   N/A 
Fiscal year 2012 (as of February 29, 2012) $-  $-   -   N/A 
Fiscal year 2011 (as of February 28, 2011) $-  $-   -   N/A 
Fiscal year 2010 (as of February 28, 2010) $-  $-   -   N/A 
Fiscal year 2009 (as of February 28, 2009) $-  $-   -   N/A 
Fiscal year 2008 (as of February 29, 2008) $-  $-   -   N/A 
Fiscal year 2007 (as of February 28, 2007) $-  $-   -   N/A 
6.75% Notes due 2023(9)                
Fiscal year 2020 (as of February 29, 2020) $-  $-   -   N/A 
Fiscal year 2019 (as of February 28, 2019) $74,451  $2,345   -  $25.74(10)
Fiscal year 2018 (as of February 28, 2018) $74,451  $2,930   -  $26.05(10)
Fiscal year 2017 (as of February 28, 2017) $74,451  $2,710   -  $25.89(10)
6.25% Notes due 2025(13)                
Fiscal year 2022 (as of November 30, 2021), (unaudited) $-  $-   -   N/A 
Fiscal year 2021 (as of February 28, 2021) $60,000  $3,471      $24.24(11)
Fiscal year 2020 (as of February 29, 2020) $60,000  $6,071   -  $25.75(11)
Fiscal year 2019 (as of February 28, 2019) $60,000  $2,345   -  $24.97(11)
7.25% Notes due 2025                
Fiscal year 2022 (as of November 30, 2021), (unaudited) $43,125  $2,367   -  $26.32(11)
Fiscal year 2021 (as of February 28, 2021) $43,125  $3,471      $25.77(11)
7.75% Notes due 2025                
Fiscal year 2022 (as of November 30, 2021), (unaudited) $5,000  $2,367   -  $25.00(12)
Fiscal year 2021 (as of February 28, 2021) $5,000  $3,471   -  $25.00(12)
4.375% Notes due 2026                
Fiscal year 2022 (as of November 30, 2021), (unaudited) $175,000  $2,367   -  $25.00(12)
6.25% Notes due 2027                
Fiscal year 2022 (as of November 30, 2021), (unaudited) $15,000  $2,367   -  $25.00(12)
Fiscal year 2021 (as of February 28, 2021) $15,000  $3,471   -  $25.00(12)

 


 

(1)We have excluded our SBA-guaranteed debentures from this table because the SEC has granted us exemptive relief that permits us to exclude such debentures from the definition of senior securities in the 150% asset coverage ratio we are required to maintain under the 1940 Act.


(2)This table does not include the senior securities of our predecessor entity, GSC Investment Corp., relating to a revolving securitized credit facility with Deutsche Bank, in light of the fact that the Company was under different management during the time that such credit facility was outstanding.

(3)Total amount of senior securities outstanding at the end of the period presented.

(4)Asset coverage per unit is the ratio of our total assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness, calculated on a total basis.

(5)The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. The “—” indicates information which the Securities and Exchange Commission expressly does not require to be disclosed for certain types of senior securities.

(6)Not applicable for credit facility because not registered for public trading.

(7)On January 13, 2017, the Company redeemed in full its issued and outstanding 2020 Notes. The Company used a portion of the net proceeds from the 2023 Notes offering, which was completed in December 2016, to redeem the 2020 Notes in full.

(8)Based on the average daily trading price of the 2020 Notes on the NYSE.

(9)On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.45 million, respectively, in aggregate principal amount of the $74.45 million in aggregate principal amount of issued and outstanding 2023 Notes.

(10)Based on the average daily trading price of the 2023 Notes on the NYSE.

(11)Based on the average daily trading price of the 2025 Notes on the NYSE.

(12)The carrying value of this unlisted security approximates its fair value, based on a waterfall analysis showing adequate collateral coverage.
(13)On August 31, 2021, the Company redeemed $60.0 million in aggregate principal amount of the issued and outstanding 6.25% 2025 Notes. The Company used a portion of the net proceeds from the 4.375% 2026 Notes offering, which was completed in July 2021, to redeem the 6.25% 2025 Notes in full.
(14)On October 4, 2021, the Company repaid all remaining amounts outstanding under the Madison Credit Facility and the credit agreement relating to the Madison Credit Facility was terminated.

 


Note 8. Commitments and Contingencies

 

Contractual Obligations

 

The following table shows our payment obligations for repayment of debt and other contractual obligations at May 31,November 30, 2021:

     Payment Due by Period 
Long-Term Debt Obligations Total  Less Than
1 Year		  1 - 3
Years		  3 - 5
Years		  More Than
5 Years		 
  ($ in thousands) 
Encina credit facility $12,500  $          -  $12,500  $-  $- 
SBA debentures  207,000   -   37,000   24,660   145,340 
7.25% 2025 Notes  43,125   -   -   43,125   - 
7.75% 2025 Notes  5,000   -   -   5,000   - 
4.375% 2026 Notes  175,000   -   -   175,000   - 
6.25% 2027 Notes  15,000   -   -   -   15,000 
Total Long-Term Debt Obligations $457,625  $-  $49,500  $247,785  $160,340 

 

     Payment Due by Period 
Long-Term Debt Obligations Total  Less Than 1 Year  1 - 3 Years  3 - 5 Years  More Than 5 Years 
  ($ in thousands) 
Revolving credit facility $39,000  $-  $-  $39,000  $- 
SBA debentures  168,000   -   24,000   53,660   90,340 
6.25% 2025 Notes  60,000   -   -   60,000   - 
7.25% 2025 Notes  43,125   -   -   43,125   - 
7.75% 2025 Notes  5,000   -   -   5,000   - 
4.375% 2026 Notes  50,000   -   -   50,000   - 
6.25% 2027 Notes  15,000   -   -   -   15,000 
Total Long-Term Debt Obligations $380,125  $-  $24,000  $250,785  $105,340 


Off-Balance Sheet Arrangements

 

As of May 31,November 30, 2021 and February 28, 2021, the Company’s off-balance sheet arrangements consisted of $55.0$97.1 million and $58.8 million, respectively, of unfunded commitments outstanding to provide debt financing to its portfolio companies or to fund limited partnership interests. Such commitments are generally up to the Company’s discretion to approve, or the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’s consolidated statements of assets and liabilities and are not reflected in the Company’s consolidated statements of assets and liabilities.

 

A summary of the unfunded commitments outstanding as of May 31,November 30, 2021 and February 28, 2021 is shown in the table below (dollars in thousands):

 

  May 31, 2021  February 28, 2021 
At Company’s discretion        
Artemis Wax Corp. $15,000  $- 
Book4Time, Inc.  2,000   2,000 
CLEO Communications Holding, LLC  630   630 
Granite Comfort, LP  5,000   - 
GreyHeller LLC  11,000   15,000 
Netreo Holdings, LLC  1,000   10,000 
Passageways, Inc.  5,000   5,000 
Top Gun Pressure Washing, LLC  175   3,175 
Village Realty Holdings LLC  -   10,000 
Total  39,805   45,805 
         
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required        
Artemis Wax Corp.  3,404   - 
GoReact  800   2,000 
HemaTerra Holding Company, LLC  2,000   2,000 
New England Dental Partners  4,500   6,000 
Passageways, Inc.  2,000   2,000 
Procurement Partners, LLC  1,000   1,000 
Zollege PBC  1,500   - 
   15,204   13,000 
Total $55,009  $58,805 

  November 30,
2021		  February 28,
2021		 
At Company’s discretion      
Artemis Wax Corp. $9,700  $- 
Axero Holdings, LLC  3,000   - 
Book4Time, Inc.  2,000   2,000 
CLEO Communications Holding, LLC  -   630 
GreyHeller LLC  -   15,000 
LFR Chicken LLC  10,000   - 
Netreo Holdings, LLC  1,000   10,000 
Passageways, Inc.  -   5,000 
Pepper Palace, Inc.  3,000   - 
Procurement Partners, LLC  3,000   - 
Saratoga Senior Loan Fund I JV LLC  43,750   - 
Sceptre Hospitality Resources, LLC  1,000   - 
Top Gun Pressure Washing, LLC  175   3,175 
Village Realty Holdings LLC  -   10,000 
Total  76,625   45,805 
         
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required        
Axero Holdings, LLC  2,000   - 
GoReact  -   2,000 
Granite Comfort, LP  2,000   - 
HemaTerra Holding Company, LLC  2,000   2,000 
LFR Chicken LLC  3,000   - 
New England Dental Partners  4,500   6,000 
Passageways, Inc.  -   2,000 
Pepper Palace, Inc.  4,500   - 
Procurement Partners, LLC  1,000   1,000 
Zollege PBC  1,500   - 
   20,500   13,000 
Total $97,125  $58,805 

 


Note 9. Directors Fees

 

The independent directors each receive an annual fee of $70,000. They also receive $3,000 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each board meeting and receive $1,500 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each committee meeting. In addition, the chairman of the Audit Committee receives an annual fee of $12,500 and the chairman of each other committee receives an annual fee of $6,000 for their additional services in these capacities. In addition, we have purchased directors’ and officers’ liability insurance on behalf of our directors and officers. Independent directors have the option to receive their directors’ fees in the form of our common stock issued at a price per share equal to the greater of net asset value or the market price at the time of payment. No compensation is paid to directors who are “interested persons” of the Company (as such term is defined in the 1940 Act). For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, we incurred $0.09$0.07 million and $0.06 million for directors’ fees and expenses, respectively. For the nine months ended November 30, 2021 and November 30, 2020, we incurred $0.3 million and $0.2 million for directors’ fees and expenses, respectively. As of May 31,November 30, 2021, and February 28, 2021, $0.09$0.0 million and $0.07 million in directors’ fees and expenses were accrued and unpaid, respectively. As of May 31,November 30, 2021, we had not issued any common stock to our directors as compensation for their services.

63

 

Note 10. Stockholders’ Equity

 

On May 16, 2006, GSC Group, Inc. capitalized the LLC, by contributing $1,000 in exchange for 67 shares, constituting all of the issued and outstanding shares of the LLC.

 

On March 20, 2007, the Company issued 95,995.5 and 8,136.2 shares of common stock, priced at $150.00 per share, to GSC Group and certain individual employees of GSC Group, respectively, in exchange for the general partnership interest and a limited partnership interest in GSC Partners CDO III GP, LP, collectively valued at $15.6 million. At this time, the 6.7 shares owned by GSC Group in the LLC were exchanged for 6.7 shares of the Company.

 

On March 28, 2007, the Company completed its IPO of 725,000 shares of common stock, priced at $150.00 per share, before underwriting discounts and commissions. Total proceeds received from the IPO, net of $7.1 million in underwriter’s discount and commissions, and $1.0 million in offering costs, were $100.7 million.

 

On July 30, 2010, our Manager and its affiliates purchased 986,842 shares of common stock at $15.20 per share. Total proceeds received from this sale were $15.0 million.

 

On August 12, 2010, we effected a one-for-ten reverse stock split of our outstanding common stock. As a result of the reverse stock split, every ten shares of our common stock were converted into one share of our common stock. Any fractional shares received as a result of the reverse stock split were redeemed for cash. The total cash payment in lieu of shares was $230. Immediately after the reverse stock split, we had 2,680,842 shares of our common stock outstanding.

 

On September 24, 2014, the Company announced the approval of an open market share repurchase plan that allowed it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published consolidated financial statements (the “Share Repurchase Plan”). On October 7, 2015, our board of directors extended the Share Repurchase Plan for another year and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 400,000 shares of its common stock. On October 5, 2016, our board of directors extended the Share Repurchase Plan for another year to October 15, 2017 and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 600,000 shares of its common stock. On October 10, 2017, January 8, 2019 and January 7, 2020, our board of directors extended the Share Repurchase Plan for another year to October 15, 2018, January 15, 2020 and January 15, 2021, respectively, each time leaving the number of shares unchanged at 600,000 shares of its common stock. On May 4, 2020, our board of directors increased the Share Repurchase Plan to 1.3 million shares of common stock. On January 5, 2021, our board of directors extended the SharesShare Repurchase Plan for another year to January 15, 2022, leaving the number of shares unchanged at 1.3 million shares of common stock. As of May 31,November 30, 2021, the Company purchased 448,812458,435 shares of common stock, at the average price of $18.49$18.64 for approximately $8.3$8.6 million pursuant to the Share Repurchase Plan. During the three months ended May 31,November 30, 2021 there was no activity. During the nine months ended November 30, 2021, the Company purchased 40,00049,623 shares of common stock, at the average price of $25.09$25.23 for approximately $1.0$1.3 million pursuant to the Share Repurchase Plan.

 


On March 16, 2017, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc., through which we may offer for sale, from time to time, up to $30.0 million of our common stock through an ATM offering. Subsequent to this, BB&T Capital Markets and B. Riley FBR, Inc. were also added to the agreement. On July 11, 2019, the amount of the common stock to be offered was increased to $70.0 million, and on October 8, 2019, the amount of the common stock to be offered was increased to $130.0 million. AsThis agreement was terminated as of May 31,July 29, 2021, and as of that date, the Company had sold 3,992,0183,922,018 shares for gross proceeds of $97.1 million at an average price of $24.77 for aggregate net proceeds of $95.9 million (net of transaction costs).

On July 30, 2021, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc. and Compass Point Research and Trading, LLC (collectively the “Agents”), through which we may offer for sale, from time to time, up to $150.0 million of our common stock through the Agents, or to them, as principal for their account. As of November 30, 2021, the Company sold 4,447,535 shares for gross proceeds of $112.5 million at an average price of $25.29 for aggregate net proceeds of $111.0 million (net of transaction costs). During the three months ended May 31,November 30, 2021, there was no activity related to the ATM offering.Company sold 520,076 shares for gross proceeds of $15.2 million at an average price of $29.16 for aggregate net proceeds of $15.0 million (net of transaction cost). During the nine months ended November 30, 2021, the Company sold 525,517 shares for gross proceeds of $15.3 million at an average price of $29.15 for aggregate net proceeds of $15.2 million (net of transaction cost).

 

On July 13, 2018, the Company issued 1,150,000 shares of its common stock priced at $25.00 per share (par value $0.001 per share) at an aggregate total of $28.75 million. The net proceeds, after deducting underwriting commissions of $1.15 million and offering costs of approximately $0.2 million, amounted to approximately $27.4 million. The Company also granted the underwriters a 30-day option to purchase up to an additional 172,500 shares of its common stock, which was not exercised.

64

 

The Company adopted Rule 3-04/Rule 8-03(a)(5) under Regulation S-X (Note 2). Pursuant to the regulation, the Company has presented a reconciliation of the changes in each significant caption of stockholders’ equity as shown in the tables below:

 

  Common Stock  Capital in Excess of  Total Distributable Earnings    
  Shares  Amount  Par Value  (Loss)  Net Assets 
Balance at February 29, 2020  11,217,545  $11,218  $289,476,991  $14,798,644  $304,286,853 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   9,018,314   9,018,314 
Net realized gain (loss) from investments  -   -   -   8,480   8,480 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (31,950,369)  (31,950,369)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   267,740   267,740 
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   -   - 
Capital Share Transactions:                    
Proceeds from issuance of common stock  -   -   -   -   - 
Stock dividend distribution  -   -   -   -   - 
Repurchases of common stock  -   -   -   -   - 
Offering costs  -   -   -   -   - 
Balance at May 31, 2020  11,217,545  $11,218  $289,476,991  $(7,857,191) $281,631,018 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   5,334,713   5,334,713 
Net realized gain (loss) from investments  -   -   -   11,929   11,929 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   16,580,401   16,580,401 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (116,521)  (116,521)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (4,487,015)  (4,487,015)
Capital Share Transactions:                    
Proceeds from issuance of common stock  -   -   -   -   - 
Stock dividend distribution  47,098   46   774,944   -   774,990 
Repurchases of common stock  (90,321)  (90)  (1,550,327)  -   (1,550,417)
Repurchase fees  -   -   (1,740)  -   (1,740)
Offering costs  -   -   -   -   - 
Balance at August 31, 2020  11,174,322  $11,174  $288,699,868  $9,466,316  $298,177,358 

          Total    
  Common Stock  Capital
in Excess		  Distributable
Earnings 		    
  Shares  Amount  of Par Value  (Loss)  Net Assets 
Balance at February 29, 2020  11,217,545  $11,218  $289,476,991  $14,798,644  $304,286,853 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   9,018,314   9,018,314 
Net realized gain (loss) from investments  -   -   -   8,480   8,480 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (31,950,369)  (31,950,369)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   267,740   267,740 
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   -   - 
Capital Share Transactions:                    
Proceeds from issuance of common stock  -   -   -   -   - 
Stock dividend distribution  -   -   -   -   - 
Repurchases of common stock  -   -   -   -   - 
Offering costs  -   -   -   -   - 
Balance at May 31, 2020  11,217,545  $11,218  $289,476,991  $(7,857,191) $281,631,018 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   5,334,713   5,334,713 
Net realized gain (loss) from investments  -   -   -   11,929   11,929 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   16,580,401   16,580,401 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (116,521)  (116,521)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (4,487,015)  (4,487,015)
Capital Share Transactions:                    
Proceeds from issuance of common stock  -   -   -   -   - 
Stock dividend distribution  47,098   46   774,944   -   774,990 
Repurchases of common stock  (90,321)  (90)  (1,550,327)  -   (1,550,417)
Repurchase fees  -   -   (1,740)  -   (1,740)
Offering costs  -   -   -   -   - 
Balance at August 31, 2020  11,174,322  $11,174  $288,699,868  $9,466,316  $298,177,358 
                     
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   4,471,102   4,471,102 
Net realized gain (loss) from investments  -   -   -   1,798   1,798 
Income tax (provision) benefit from realized gain on investments              (3,895,354)  (3,895,354)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   5,998,830   5,998,830 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (210,057)  (210,057)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (4,581,469)  (4,581,469)
Capital Share Transactions:                    
Proceeds from issuance of common stock  -   -   -   -   - 
Stock dividend distribution  45,706   46   805,883   -   805,929 
Repurchases of common stock  (50,000)  (50)  (914,194)  -   (914,244)
Repurchase fees  -   -   (1,003)  -   (1,003)
Offering costs  -   -   -   -   - 
Balance at November 30, 2020  11,170,028  $11,170  $288,590,554  $11,251,166  $299,852,890 

  


 Common Stock  Capital in Excess of  Total Distributable Earnings          Total   
 Shares  Amount  Par Value  (Loss)  Net Assets  Common Stock Capital
in Excess		 Distributable
Earnings 		   
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   4,471,102   4,471,102 
Net realized gain (loss) from investments  -   -   -   1,798   1,798 
Income tax (provision) benefit from realized gain on investments              (3,895,354)  (3,895,354)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   5,998,830   5,998,830 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (210,057)  (210,057)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (4,581,469)  (4,581,469)
Capital Share Transactions:                    
Proceeds from issuance of common stock  -   -   -   -   - 
Stock dividend distribution  45,706   46   805,883   -   805,929 
Repurchases of common stock  (50,000)  (50)  (914,194)  -   (914,244)
Repurchase fees  -   -   (1,003)  -   (1,003)
Offering costs  -   -   -   -   - 
Balance at November 30, 2020  11,170,028  $11,170  $288,590,554  $11,251,166  $299,852,890 
 Shares Amount of Par Value (Loss) Net Assets 
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   4,288,996   4,288,996   -   -   -   4,288,996   4,288,996 
Net realized gain (loss) from investments  -   -   -   (8,726,013)  (8,726,013)  -   -   -   (8,726,013)  (8,726,013)
Income tax (provision) benefit from realized gain on investments  -   -   -   -   -   -   -   -   -   - 
Realized losses on extinguishment of debt              (128,617)  (128,617)              (128,617)  (128,617)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   14,337,460   14,337,460   -   -   -   14,337,460   14,337,460 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (515,796)  (515,796)  -   -   -   (515,796)  (515,796)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (4,678,514)  (4,678,514)  -   -   -   (4,678,514)  (4,678,514)
Capital Share Transactions:                                        
Proceeds from issuance of common stock  -   -   -   -   -   -   -   -   -   - 
Stock dividend distribution  41,388   41   900,124   -   900,165   41,388   41   900,124   -   900,165 
Repurchases of common stock  (50,000)  (50)  (1,143,748)  -   (1,143,798)  (50,000)  (50)  (1,143,748)  -   (1,143,798)
Repurchase fees  -   -   (1,003)  -   (1,003)  -   -   (1,003)  -   (1,003)
Offering costs  -   -   -   -   -   -   -   -   -   - 
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles  -   -   16,529,030   (16,529,030)  -   -   -   16,529,030   (16,529,030)  - 
Balance at February 28, 2021  11,161,416  $11,161  $304,874,957  $(700,348) $304,185,770   11,161,416  $11,161  $304,874,957  $(700,348) $304,185,770 
                    
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   2,555,935   2,555,935   -   -   -   2,555,935   2,555,935 
Net realized gain (loss) from investments  -   -   -   1,910,141   1,910,141   -   -   -   1,910,141   1,910,141 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   16,812,577   16,812,577   -   -   -   16,812,577   16,812,577 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (230,144)  (230,144)  -   -   -   (230,144)  (230,144)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (4,799,405)  (4,799,405)  -   -   -   (4,799,405)  (4,799,405)
Capital Share Transactions:                                        
Proceeds from issuance of common stock  -   -   -   -   -   -   -   -   -   - 
Stock dividend distribution  38,580   39   914,063   -   914,102   38,580   39   914,063   -   914,102 
Repurchases of common stock  (40,000)  (40)  (1,003,380)  -   (1,003,420)  (40,000)  (40)  (1,003,380)  -   (1,003,420)
Repurchase fees  -   -   (800)  -   (800)  -   -   (800)  -   (800)
Offering costs  -   -   -   -   -   -   -   -   -   - 
Balance at May 31, 2021  11,159,995  $11,160  $304,784,840  $15,548,756  $320,344,756   11,159,995  $11,160  $304,784,840  $15,548,756  $320,344,756 
Increase (Decrease) from Operations:                    
Net investment income   -   -   -   6,393,261   6,393,261 
Net realized gain (loss) from investments  -   -   -   1,501,597   1,501,597 
Income tax (provision) benefit from realized gain on investments   -   -   -   (448,883)  (448,883)
Realized losses on extinguishment of debt              (1,552,140)  (1,552,140)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   3,376,540   3,376,540 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (1,328,711)  (1,328,711)
Decrease from Shareholder Distributions:                     
Distributions of investment income – net  -   -   -   (4,910,394)  (4,910,394)
Capital Share Transactions:                     
Proceeds from issuance of common stock  5,441   6   157,034   -   157,040 
Stock dividend distribution   33,099   33   828,479   -   828,512 
Repurchases of common stock  (9,623)  (10)  (248,713)  -   (248,723)
Repurchase fees       -   (192)  -   (192)
Offering costs  -   -   (817)  -   (817)
Balance at August 31, 2021  11,188,912  $11,189  $305,520,631  $18,580,025  $324,111,845 
                    
Increase (Decrease) from Operations:                    
Net investment income   -   -   -   5,196,635   5,196,635 
Net realized gain (loss) from investments  -   -   -   9,916,925   9,916,925 
Income tax (provision) benefit from realized gain on investments   -   -   -   (2,447,173)  (2,447,173)
Realized losses on extinguishment of debt              (764,123)  (764,123)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (6,042,616)  (6,042,616)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   2,480,465   2,480,465 
Decrease from Shareholder Distributions:                     
Distributions of investment income – net  -   -   -   (5,889,329)  (5,889,329)
Capital Share Transactions:                     
Proceeds from issuance of common stock  520,076   520   15,163,259   -   15,163,779 
Stock dividend distribution   38,016   38   1,017,625   -   1,017,663 
Repurchases of common stock  -   -   -   -   - 
Repurchase fees       -   -   -   - 
Offering costs  -   -   (142,326)  -   (142,326)
Balance at November 30, 2021  11,747,004  $11,747  $321,559,189  $21,030,809  $342,601,745 

 


66

Note 11. Earnings Per Share

 

In accordance with the provisions of FASB ASC Topic 260, “Earnings per Share” (“ASC 260”), basic earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis.

 

The following information sets forth the computation of the weighted average basic and diluted net increase in net assets resulting from operations per share for the three and nine months ended May 31,November 30, 2021 and May 31,November 30, 2020 (dollars in thousands except share and per share amounts):

  For the three months ended 
Basic and Diluted May 31, 2021  May 31, 2020 
Net increase (decrease) in net assets resulting from operations $21,049  $(22,656)
Weighted average common shares outstanding  11,170,045   11,217,545 
Weighted average earnings (loss) per common share $1.88  $(2.02)

  For the three months ended  For the nine months ended 
Basic and Diluted November 30,
2021		  November 30,
2020		  November 30,
2021		  November 30,
2020		 
Net increase (decrease) in net assets resulting from operations $8,340  $6,366  $37,330  $5,521 
Weighted average common shares outstanding  11,450,861   11,169,817   11,312,991   11,198,287 
Weighted average earnings (loss) per common share $0.73  $0.57  $3.30  $0.49 

 

Note 12. Dividend

 

On May 27,November 30, 2021, the Company declared a dividend of $0.44$0.53 per share payable on June 29, 2021,January 19, 2022, to common stockholders of record on June 15,January 4, 2021. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company'sCompany’s DRIP. Based on shareholder elections, the dividend consisted of approximately $4.1 million in cash and 33,099 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $25.03 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 16, 17, 18, 21, 22, 23, 24, 25, 28 and 29, 2021.

During the three months ended May 31, 2020, there were no dividends declared.

 

The following table summarizes dividends declared for the threenine months ended May 31,November 30, 2021 (dollars in thousands except per share amounts):

Date Declared Record Date Payment Date Amount Per Share  Total Amount*  Record Date Payment Date Amount
Per Share		 Total Amount* 
August 26, 2021 September 14, 2021 September 28, 2021 $0.52 $5,889 
May 27, 2021 June 15, 2021 June 29, 2021  0.44   4,910 
March 22, 2021 April 8, 2021 April 22, 2021 $0.43  $4,799  April 8, 2021 April 22, 2021  0.43   4,799 
Total dividends declared     $0.43  $4,799      $1.39  $15,598 

 

 

*Total amount is calculated based on the number of shares outstanding at the date of record.

The following table summarizes dividends declared for the nine months ended November 30, 2020 (dollars in thousands except per share amounts):

Date Declared Record Date Payment Date Amount
Per Share		  Total Amount* 
October 6, 2020 October 27, 2020 November 10, 2020 $0.41  $4,581 
July 7, 2020 July 27, 2020 August 12, 2020  0.40   4,487 
Total dividends declared     $0.40  $4,487 

*Total amount is calculated based on the number of shares outstanding at the date of record.

 


Note 13. Financial Highlights

 

The following is a schedule of financial highlights as of and for the threenine months ended May 31,November 30, 2021 and May 31,November 30, 2020:

 

Per share data May 31, 2021 May 31, 2020  November 30,
2021		 November 30,
2020		 
Net asset value at beginning of period $27.25  $27.13  $27.25  $27.13 
Net investment income(1)  0.23   0.80   1.25   1.68 
Net realized and unrealized gain and losses on investments(1)  1.65   (2.82)  2.25   (1.19)
Realized losses on extinguishment of debt(1)  (0.20)  - 
Net increase in net assets resulting from operations  1.88   (2.02)  3.30   0.49 
Distributions declared from net investment income  (0.43)  -   (1.39)  (0.81)
Total distributions to stockholders  (0.43)  -   (1.39)  (0.81)
Issuance of common stock above net asset value (2)  -   -   -   - 
Repurchases of common stock(3)  0.01   -   0.01   0.11 
Dilution(4)  (0.01)  -   -   (0.08)
Net asset value at end of period $28.70  $25.11  $29.17  $26.84 
Net assets at end of period $320,344,756  $281,631,018  $342,601,745  $299,852,890 
Shares outstanding at end of period  11,159,995   11,217,545   11,747,004   11,170,028 
Per share market value at end of period $25.55  $15.18  $28.90  $22.13 
Total return based on market value(5)(6)  12.71%  (33.74)%  32.25%  1.24%
Total return based on net asset value(5)(7)  7.24%  (7.45)%  13.03%  3.69%
Ratio/Supplemental data:                
Ratio of net investment income to average net assets(8)  8.25%  10.33%  6.80%  8.66%
Expenses:                
Ratio of operating expenses to average net assets(9)  5.92%  4.84%  5.58%  5.02%
Ratio of incentive management fees to average net assets(5)  1.69%  (0.63)%  3.00%  0.66%
Ratio of interest and debt financing expenses to average net assets(9)  5.51%  3.47%  5.90%  4.24%
Ratio of total expenses to average net assets(8)  13.12%  7.68%  14.48%  9.92%
Portfolio turnover rate(5)(10)  2.43%  1.93%  33.79%  10.07%
Asset coverage ratio per unit(11)  2,510   5,694   2,367   3,773 
Average market value per unit                
Revolving Credit Facility(12)  N/A    N/A   N/A     N/A 
SBA Debentures Payable(12)  N/A    N/A   N/A    N/A 
6.75% Notes Payable 2023(13)  N/A    N/A 
6.25% Notes Payable 2025 $25.58  $22.15 
6.25% Notes Payable 2025(13)   N/A  $23.87 
7.25% Notes Payable 2025 $26.61    N/A  $26.32  $25.53 
7.75% Notes Payable 2025(12)  N/A    N/A   N/A     N/A 
4.375% Notes Payable(12)  N/A   N/A   N/A   N/A 
6.25% Notes Payable 2027(12)  N/A   N/A   N/A   N/A 

 

 

(1)Per share amounts are calculated using the weighted average shares outstanding during the period.
(2)The continuous issuance of common stock may cause an incremental increase in net asset value per share due to the sale of shares at the then prevailing public offering price and the receipt of net proceeds per share by the Company in excess of net asset value per share on each subscription closing date. The per share data was derived by computing (i) the sum of (A) the number of shares issued in connection with subscriptions and/or distribution reinvestment on each share transaction date multiplied by (B) the differences between the net proceeds per share and the net asset value per share on each share transaction date, divided by (ii) the total shares outstanding during the period.
(3)Represents the anti-dilutive impact on the net asset value per share (“NAV”) of the Company due to the repurchase of common shares. See Note 10, Stockholders’ Equity.
(4)Represents the dilutive effect of issuing common stock below net asset value per share during the period in connection with the satisfaction of the Company’s annual RIC distribution requirement and may include the impact of the different share amounts used for different items (weighted average basic common shares outstanding for the corresponding year and actual common shares outstanding at the end of the year) in the per common share data calculation and rounding impacts. See Note 12, Dividend.


(5)Ratios are not annualized.


(6)Total investment return is calculated assuming a purchase of common shares at the current market value on the first day and a sale at the current market value on the last day of the periods reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company’s DRIP. Total investment return does not reflect brokerage commissions.
(7)Total investment return is calculated assuming a purchase of common shares at the current net asset value on the first day and a sale at the current net asset value on the last day of the periods reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company’s DRIP. Total investment return does not reflect brokerage commissions.
(8)Ratios are annualized. Incentive management fees included within the ratio are not annualized.
(9)Ratios are annualized.
(10)Portfolio turnover rate is calculated using the lesser of year-to-date sales or year-to-date purchases over the average of the invested assets at fair value.
(11)Asset coverage ratio per unit is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage ratio per unit is expressed in terms of dollar amounts per $1,000 of indebtedness. Asset coverage ratio per unit does not include unfunded commitments. The inclusion of unfunded commitments in the calculation of the asset coverage ratio per unit would not cause us to be below the required amount of regulatory coverage.
(12)The Revolving Credit Facility, SBA Debentures, 7.75% Notes Payable 2025, 4.375% Notes Payable and 6.25% Notes Payable are not registered for public trading.
(13)On December 21, 2019 and February 7, 2020,August 31, 2021, the Company redeemed $50.0$60.0 million and $24.5 million, respectively, in aggregate principal amount of the $74.5 million in aggregate principal amount of issued and outstanding 20236.25% 2025 Notes and, as a result of the full redemption, the 6.25% 2025 Notes are no longer listed on the NYSE.

Note 14. Subsequent Events

 

The Company has evaluated subsequent events through the filing of this Form 10-Q and determined that there have been no events that have occurred that would require adjustments to the Company’s consolidated financial statements and disclosures in the consolidated financial statements except for the following:

 

Subsequent to May 31,November 30, 2021, the global outbreak of the coronavirus pandemic has adversely affected some of the Company’s investments and continues to have adverse consequences on the U.S. and global economies. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual portfolio companies, remains uncertain. At the time of this filing, there is no indication of a reportable subsequent event impacting the Company’s financial statements for the three and nine months ended May 31,November 30, 2021. The Company cannot predict the extent to which its financial condition and results of operations will be adversely affected at this time. The potential impact to our results will depend to a large extent on future developments and new information that may emerge regarding the duration and severity of COVID-19. The Company continues to observe and respond to the evolving COVID-19 environment and its potential impact on areas across its business.

 

On January 4, 2022, our board of directors extended the Shares Repurchase Plan for another year to January 15, 2023, leaving the number of shares unchanged at 1.3 million shares of common stock.


ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form 10-Q. In addition to historical information, the following discussion and other parts of this Quarterly Report contain forward-looking information that involves risks and uncertainties. Our actual results could differ materially from those anticipated by such forward-looking information due to the factors discussed under “Note about Forward-Looking Statements” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended February 28, 2021.

 

The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or are within our control. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements.

 

The forward-looking statements contained in this Quarterly Report on Form 10-Q involve risks and uncertainties, including statements as to:

 

●our future operating results and the continued impact of coronavirus (“COVID-19”) pandemic thereon;

 

●the introduction, withdrawal, success and timing of business initiatives and strategies;

 

●changes in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in the value of our assets;

 

●pandemics or other serious public health events, such as the recent global outbreak of COVID-19;

 

●the relative and absolute investment performance and operations of our Investment Manager;

 

●the impact of increased competition;

 

●our ability to turn potential investment opportunities into transactions and thereafter into completed and successful investments;

 

●the unfavorable resolution of any future legal proceedings;

 

●our business prospects and the prospectsoperational and financial performance of our portfolio companies, including our and their ability to achieve our respective objectives as a result of the current COVID-19 pandemic;pandemic and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business;

 

●the impact of investments that we expect to make and future acquisitions and divestitures;

 

●our contractual arrangements and relationships with third parties;

 

●the dependence of our future success on the general economy and its impact on the industries in which we invest and the impact of the COVID-19 pandemic thereon;

 

●the ability of our portfolio companies to achieve their objectives;

 

●our expected financings and investments;

 

●our regulatory structure and tax status,treatment, including our ability to operate as a business development company (“BDC”), or to operate our small business investment company (“SBIC”) subsidiaries, and to continue to qualify to be taxed as a regulated investment company (“RIC”);

 


●the adequacy of our cash resources and working capital;

 

●the timing of cash flows, if any, from the operations of our portfolio companies and the impact of the COVID-19 pandemic thereon;

 

●the impact of interest rate volatility on our results, particularly because we use leverage as part of our investment strategy;

 

●the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to us or our Manager;

 

●the impact of changes to tax legislation and, generally, our tax position;

 

●our ability to access capital and any future financings by us;

 

●the ability of our Manager to attract and retain highly talented professionals; and

 

●the ability of our Manager to locate suitable investments for us and to monitor and effectively administer our investments and the impacts of the COVID-19 pandemic thereon.

 


The following statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:

 

●changes in laws and regulations, changes in political, economic or industry conditions, and changes in the interest rate environment, including with respect to the anticipated discontinuation of LIBOR, or other conditions affecting the financial and capital markets, including with respect to changes resulting from or in response to, or potentially even the absence of changes as a result of, the impact of the COVID-19 pandemic;

 

●the length and duration of the COVID-19 outbreak in the United States as well as worldwide, and the magnitude of its impact and time required for economic recovery, including with respect to the impact of travel restrictions, business closures and other isolation and quarantine measures on the ability of the Manager’s investment professionals to conduct in-person diligence on, and otherwise monitor, existing and future investments;

 

●an economic downturn and the time period required for robust economic recovery therefrom, including the current economic downturn as a result of the impact of the COVID-19 pandemic, which may have a material impact on our portfolio companies’ results of operations and financial condition, which could lead to the loss of some or all of our investments in certain portfolio companies and have a material adverse effect on our results of operations and financial condition ;condition;

 

●a contraction of available credit, an inability or unwillingness of our lenders to fund their commitments to us and/or an inability to access capital markets or additional sources of liquidity, including as a result of the impact and duration of the COVID-19 pandemic, could have a material adverse effect on our results of operations and financial condition and impair our lending and investment activities;

 

●risks associated with possible disruption in our portfolio companies’ operations due to wars and other forms of conflict, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics; and

 

●the risks, uncertainties and other factors we identify in “Risk Factors” in our most recent Annual Report on Form 10-K under Part I, Item 1A, in our quarterly reports on Form 10-Q, including this report, and in our other filings with the SEC that we make from time to time.

 


Such forward-looking statements may include statements preceded by, followed by or that otherwise include terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “will” and “would” or the negative of these terms or other comparable terminology.

 

We have based the forward-looking statements included in this quarterly report on Form 10-Q on information available to us on the date of this quarterly report on Form 10-Q, and we assume no obligation to update any such forward-looking statements. Actual results could differ materially from those anticipated in our forward-looking statements, and future results could differ materially from historical performance. We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law or SEC rule or regulation. You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

 

The following analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes thereto contained elsewhere in this quarterly report on Form 10-Q.

 

OVERVIEW

 

We are a Maryland corporation that has elected to be treated as a BDC under the Investment Company Act of 1940, as amended (the “1940 Act”). Our investment objective is to create attractive risk-adjusted returns by generating current income and long-term capital appreciation from our investments. We invest primarily in senior and unitranche leveraged loans and mezzanine debt issued by private U.S. middle market companies, which we define as companies having earnings before interest, tax, depreciation and amortization (“EBITDA”) of between $2 million and $50 million, both through direct lending and through participation in loan syndicates. We may also invest up to 30.0% of the portfolio in opportunistic investments in order to seek to enhance returns to stockholders. Such investments may include investments in distressed debt, which may include securities of companies in bankruptcy, foreign debt, private equity, securities of public companies that are not thinly traded and structured finance vehicles such as collateralized loan obligation funds. Although we have no current intention to do so, to the extent we invest in private equity funds, we will limit our investments in entities that are excluded from the definition of “investment company” under Section 3(c)(1) or Section 3(c)(7) of the 1940 Act, which includes private equity funds, to no more than 15.0% of its net assets. We have elected, and qualifiedintend to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

 


COVID-19 Update

On March 11, 2020, the World Health Organization declared the novel coronavirus, or COVID-19, as a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19. The outbreak of COVID-19 has severely impacted global economic activity and caused significant volatility and negative pressure in financial markets. The global impact of the outbreak has led to, and for an unknown period of time will continue to lead to, disruptions in local, regional, national and global markets and economies affected thereby, including the United States. The COVID-19 pandemic and restrictive measures taken to contain or mitigate its spread have caused, and are continuing to cause, business shutdowns, or the re-introduction of business shutdowns, cancellations of events and restrictions on travel, significant reductions in demand for certain goodstravel. In addition, while economic activity remains healthy and services, reductions in business activity and financial transactions,well improved from the beginning of the COVID-19 pandemic, we continue to observe supply chain interruptions, labor difficulties, commodity inflation and overallelements of economic and financial market instability both globally and in the United States. In addition, although the U.S. Food and Drug Administration authorized vaccines for emergency use starting in December 2020, it is unclear when “herd immunity” will be achieved and when the restrictions that were imposed to slow the spread of the virus will be lifted entirely. The delay in distributing the vaccines could lead people to continue to self-isolate and not participate in the economy at pre-pandemic levels for a prolonged period of time. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience a recession. As a result, COVID-19 presents material uncertainty and risks with respect to the underlying value of the Company’s portfolio companies, the Company’s business, financial condition, results of operations and cash flows, such as the potential negative impact to financing arrangements, company decisions to delay, defer and/or modify the character of dividends in order to preserve liquidity, increased costs of operations, changes in law and/or regulation, and uncertainty regarding government and regulatory policy.

 


We have evaluated subsequent events from JuneDecember 1, 2021 through July 7, 2021.January 5, 2022. However, as the discussion in this Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations relates to the Company’s financial statements for the quarter-ended May 31,November 30, 2021, the analysis contained herein may not fully account for impacts relating to the COVID-19 pandemic. In that regard, for example, as of May 31,November 30, 2021, the Company valued its portfolio investments in conformity with U.S. GAAP based on the facts and circumstances known by the Company at that time, or reasonably expected to be known at that time. Due to the overall volatility that the COVID-19 pandemic has caused during the months that followed our May 31,November 30, 2021 valuation, any valuations conducted now or in the future in conformity with U.S. GAAP could result in a lower fair value of our portfolio. The potential impact to our results going forward will depend to a large extent on future developments and new information that may emerge regarding the duration and severity of COVID- 19 and the actions taken by authorities and other entities to contain the coronavirus or treat its impact, all of which are beyond our control. Accordingly, the Company cannot predict the extent to which its financial condition and results of operations will be affected at this time.

Corporate History

 

We commenced operations, at the time known as GSC Investment Corp., on March 23, 2007 and completed an initial public offering of shares of common stock on March 28, 2007. Prior to July 30, 2010, we were externally managed and advised by GSCP (NJ), L.P., an entity affiliated with GSC Group, Inc. In connection with the consummation of a recapitalization transaction on July 30, 2010, as described below we engaged Saratoga Investment Advisors to replace GSCP (NJ), L.P. as our investment adviser and changed our name to Saratoga Investment Corp.

 

As a result of the event of default under a revolving securitized credit facility with Deutsche Bank we previously had in place, in December 2008 we engaged the investment banking firm of Stifel, Nicolaus & Company to evaluate strategic transaction opportunities and consider alternatives for us. On April 14, 2010, GSC Investment Corp. entered into a stock purchase agreement with Saratoga Investment Advisors and certain of its affiliates and an assignment, assumption and novation agreement with Saratoga Investment Advisors, pursuant to which GSC Investment Corp. assumed certain rights and obligations of Saratoga Investment Advisors under a debt commitment letter Saratoga Investment Advisors received from Madison Capital Funding LLC, which indicated Madison Capital Funding’s willingness to provide GSC Investment Corp. with a $40.0 million senior secured revolving credit facility, subject to the satisfaction of certain terms and conditions. In addition, GSC Investment Corp. and GSCP (NJ), L.P. entered into a termination and release agreement, to be effective as of the closing of the transaction contemplated by the stock purchase agreement, pursuant to which GSCP (NJ), L.P., among other things, agreed to waive any and all accrued and unpaid deferred incentive management fees up to and as of the closing of the transaction contemplated by the stock purchase agreement but continued to be entitled to receive the base management fees earned through the date of the closing of the transaction contemplated by the stock purchase agreement.

 

On July 30, 2010, the transactions contemplated by the stock purchase agreement with Saratoga Investment Advisors and certain of its affiliates were completed, the private sale of 986,842 shares of our common stock for $15.0 million in aggregate purchase price to Saratoga Investment Advisors and certain of its affiliates closed, the Company entered into the Madison Credit Facility, and the Company began doing business as Saratoga Investment Corp.

 

We used the net proceeds from the private sale transaction and a portion of the funds available to us under the Madison Credit Facility to pay the full amount of principal and accrued interest, including default interest, outstanding under our revolving securitized credit facility with Deutsche Bank. The revolving securitized credit facility with Deutsche Bank was terminated in connection with our payment of all amounts outstanding thereunder on July 30, 2010.

 

On August 12, 2010, we effected a one-for-ten reverse stock split of our outstanding common stock. As a result of the reverse stock split, every ten shares of our common stock were converted into one share of our common stock. Any fractional shares received as a result of the reverse stock split were redeemed for cash. The total cash payment in lieu of shares was $230. Immediately after the reverse stock split, we had 2,680,842 shares of our common stock outstanding.

 


In January 2011, we registered for public resale of the 986,842 shares of our common stock issued to Saratoga Investment Advisors and certain of its affiliates.

 

On March 28, 2012, our wholly-ownedwholly owned subsidiary, Saratoga Investment Corp. SBIC, LP (“SBIC LP”), received an SBIC license from the Small Business Administration (“SBA”). On August 14, 2019, our wholly-ownedwholly owned subsidiary, Saratoga Investment Corp. SBIC II LP (“SBIC II LP”), also received an SBIC license from the SBA.

 

In May 2013, we issued $48.3 million in aggregate principal amount of our 7.50% fixed-rate unsecured notes due 2020 (the “2020 Notes”) for net proceeds of $46.1 million after deducting underwriting commissions of $1.9 million and offering costs of $0.3 million. The proceeds included the underwriters’ full exercise of their overallotment option. The 2020 Notes were listed on the NYSE under the trading symbol “SAQ” with a par value of $25.00 per share. The 2020 Notes were redeemed in full on January 13, 2017 and are no longer listed on the NYSE.

 

On May 29, 2015, we entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which we may offer for sale, from time to time, up to $20.0 million in aggregate principal amount of the 2020 Notes through an At-the-Market (“ATM”) offering. Prior to the 2020 Notes being redeemed in full, the Company sold 539,725 bonds with a principal of $13.5 million at an average price of $25.31 for aggregate net proceeds of $13.4 million (net of transaction costs).

 

On December 21, 2016, we issued $74.5 million in aggregate principal amount of our 6.75% fixed-rate unsecured notes due 2023 (the “2023 Notes”) for net proceeds of $71.7 million after deducting underwriting commissions of approximately $2.3 million and offering costs of approximately $0.5 million. The issuance included the exercise of substantially all of the underwriters’ option to purchase an additional $9.8 million aggregate principal amount of 2023 Notes within 30 days. The 2023 Notes were listed on the NYSE under the trading symbol “SAB” with a par value of $25.00 per share. On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.5 million, respectively, in aggregate principal amount of the $74.5 million in aggregate principal amount of issued and outstanding 2023 Notes.Notes and are no longer listed on the NYSE.

 

On March 16, 2017, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc., through which we may offer for sale, from time to time, up to $30.0 million of our common stock through an ATM offering. Subsequent to this, BB&T Capital Markets and B. Riley FBR, Inc. were also added to the agreement.equity ATM program. On July 11, 2019, the amount of the common stock to be offered through this offering was increased to $70.0 million, and on October 8, 2019, the amount of the common stock to be offered was increased to $130.0 million. AsThis agreement was terminated as of May 31,July 29, 2021, and as of that date, the Company had sold 3,922,018 shares for gross proceeds of $97.1 million at an average price of $24.77 for aggregate net proceeds of $95.9 million (net of transaction costs). During the three months ended May 31, 2021, there was no activity related to the ATM offering.

 

On July 13, 2018, the Company issued 1,150,000 shares of its common stock priced at $25.00 per share (par value $0.001 per share) at an aggregate total of $28.75 million. The net proceeds, after deducting underwriting commissions of $1.15 million and offering costs of approximately $0.2 million, amounted to approximately $27.4 million. The Company also granted the underwriters a 30-day option to purchase up to an additional 172,500 shares of its common stock, which was not exercised.

 

On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of our 6.25% fixed-rate notes due 2025 (the “6.25% 2025 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.3 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $5.0 million aggregate principal amount of 6.25% 2025 Notes within 30 days. Interest on the 6.25% 2025 Notes iswas paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning November 30, 2018. The 6.25% 2025 Notes mature on August 31, 2025 and commencing August 28, 2021, may be redeemed in whole or in part at any time or from time to time at our option.year. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes. On February 5, 2019, the Company issued an additional $20.0 million in aggregate principal amount of the 6.25% 2025 Notes for net proceeds of $19.2 million after deducting underwriting commissions of approximately $0.6 million and discount of $0.2 million. The additional 6.25% 2025 Notes were treated as a single series with the existing 6.25% 2025 Notes under the indenture and had the same terms as the existing 6.25% 2025 Notes. Offering costs incurred were approximately $0.2 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $2.5 million aggregate principal amount of 6.25% 2025 Notes within 30 days. The net proceeds from this offering were used for general corporate purposes in accordance with our investment objective and strategies. The financing costs and discount of $1.0 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes. On August 31, 2021, the 6.25% 2025 Notes were redeemed and are no longer listed on the NYSE.

  


On December 14, 2018, the Company completed the third refinancing of the Saratoga CLO (the “2013-1 Reset CLO Notes”). This refinancing, among other things, extended the Saratoga CLO reinvestment period to January 2021, and extended its legal maturity to January 2030. A non-call period of January 2020 was also added. In addition to and as part of the refinancing, the Saratoga CLO haswas also been upsized from $300 million in assets to approximately $500 million. As part of this refinancing and upsizing, the Company invested an additional $13.8 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $2.5 million in aggregate principal amount of the Class F-R-2 Notes tranche and $7.5 million in aggregate principal amount of the Class G-R-2 Notes tranche at par. Concurrently, the existing $4.5 million of Class F notes were repaid.

 

On February 5, 2019, the Company completed a re-opening and up-sizing of its existing 6.25% 2025 Notes by issuing an additional $20.0 million in aggregate principal amount for net proceeds of $19.2 million after deducting underwriting commissions of approximately $0.6 million and discount of $0.2 million. Offering costs incurred were approximately $0.2 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $2.5 million aggregate principal amount of 6.25% 2025 Notes within 30 days. Interest rate, interest payment dates and maturity remain unchanged from the existing 6.25% 2025 Notes issued in August 2018. The net proceeds from this offering were used for general corporate purposes in accordance with our investment objective and strategies. The financing costs and discount of $1.0 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes. As of November 30, 2020, the total 6.25% 2025 Notes outstanding was $60.0 million. The 6.25% 2025 Notes are listed on the NYSE under the trading symbol “SAF” with a par value of $25.00 per share.


On August 14, 2019, our wholly-ownedwholly owned subsidiary, Saratoga Investment Corp. SBIC II LP (“SBIC II LP”), also received an SBIC license from the SBA. The new license will provide up to $175.0 million in additional long-term capital in the form of SBA debentures.

 

On June 24, 2020, the Company issued $37.5 million in aggregate principal amount of our 7.25% fixed-rate notes due 2025 (the “7.25% 2025 Notes”) for net proceeds of $36.3 million after deducting underwriting commissions of approximately $1.2 million. Offering costs incurred were approximately $0.3 million. On July 6, 2020, the underwriters exercised their option in full to purchase an additional $5.625 million in aggregate principal amount of its 7.25% unsecured notes due 2025. Net proceeds to the Company were $5.4 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 7.25% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.25% per year, beginning August 31, 2020.. The 7.25% 2025 Notes mature on June 30, 2025 and commencing June 24, 2022, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 7.25% 2025 Notes have been capitalized and are being amortized over the term of the 7.25% 2025 Notes. The Company has received an investment grade private rating of “BBB” from Egan-Jones Ratings Company, an independent, unaffiliated rating agency. As of November 30, 2020,2021, the total 7.25% 2025 Notes outstanding was $43.1 million. The 7.25% 2025 Notes are listed on the NYSE under the trading symbol “SAK” with a par value of $25.00 per share.

 

On July 9, 2020, the Company issued $5.0 million aggregate principal amount of our 7.75% fixed-rate Notes due in 2025 (the “7.75% 2025 Notes”) for net proceeds of $4.8 million after deducting underwriting commissions of approximately $0.2 million. Offering costs incurred were approximately $0.1 million. Interest on the 7.75% Notes 2025 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.75% per year, beginning August 31, 2020. The 7.75% Notes 2025 mature on July 9, 2025 and may be redeemed in whole or in part at any time or from time to time at our option.option, subject to a fee depending on the date of repayment. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 7.75% Notes 2025 have been capitalized and are being amortized over the term of the Notes. As of November 30, 2020,2021, the total 7.25% 2025 Notes outstanding was $5.0 million. The 7.75% 2025 Notes are unlisted and has a par value of $25.00 per share.

 

On December 29, 2020, the Company issued $5.0 million aggregate principal amount of our 6.25% fixed-rate Notes due in 2027 (the “6.25% Notes 2027”). Offering costs incurred were approximately $0.1 million. Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021.year. The 6.25% Notes 2027 mature on December 29, 2027 and may be redeemed in whole or in part at any time or from time to time at our option on or after December 29, 2024. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.1 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes. The 6.25% 2027 Notes are unlisted and have a par value of $25.00 per share.

 


On January 28, 2021, the Company issued $10.0 million aggregate principal amount of our 6.25% fixed rate Notes due in 2027 (the “Second 6.25% Notes 2027”) for net proceeds of $9.7 million after deducting underwriting commissions of approximately $0.3 million. Offering costs incurred were approximately $0.0 million. Interest on the Second 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021.year.  The Second 6.25% Notes 2027 mature on January 28, 2027 and commencing January 28, 2023, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the Second 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes. The Second 6.25% 2027 Notes are unlisted and have a par value of $25.00 per share.

 

On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. A non-call period ending February 2022 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. As of May 31, 2021, there remained an outstanding receivable of $2.6 million for such transaction costs which is presented as due from affiliate on the Company’s consolidated statement of assets and liabilities.

 

On March 10, 2021, the Company issued $50.0m$50.0 million aggregate principal amount of our 4.375% fixed-rate Notes due in 2026 (the “4.375% Notes 2026”) for net proceeds of $49.0 million after deducting underwriting commissions of approximately $1.0 million. Offering costs incurred were approximately $0.2 million. Interest on the 4.375% Notes 2026 is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.375% per year, beginning August 28, 2021. The 4.375% Notes 2026 mature on February 28, 2026 and may be redeemed in whole or in part at any time on or from time to time at the Company’s optionafter November 28, 2025 at par plus a “make-whole” premium, if applicable.and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.2 million related to the 4.375% Notes 2026 have been capitalized and are being amortized over the term of the Notes. At August 31, 2021, the outstanding receivable of $2.6 million was paid in full.


On July 15, 2021, the Company issued an additional $125.0 million aggregate principal amount of the Company’s 4.375% Notes 2026 (the “Additional 4.375% 2026 Notes”) for net proceeds for approximately $123.5 million, based on the public offering price of 101.00% of the aggregate principal amount of the Additional 4.375% 2026 Notes, after deducting the underwriting discount of $2.5 million and the estimated offering expenses of approximately $0.2 million payable by the Company. The net proceeds from the offering were used redeem all of the outstanding 6.25% 2025 Notes (as described above), and for general corporate purposes in accordance with our investment objective and strategies. The Additional 4.375% 2026 Notes were treated as a single series with the existing 4.375% 2026 Notes under the indenture and had the same terms as the existing 4.375% 2026 Notes.

 

On July 30, 2021, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc. and Compass Point Research and Trading, LLC (the “Agents”), through which we may offer for sale, from time to time, up to $150.0 million of our common stock through the Agents, or to them, as principal for their account. As of November 30, 2021, the Company sold 4,447,535 shares for gross proceeds of $112.5 million at an average price of $25.29 for aggregate net proceeds of $111.0 million (net of transaction costs). During the three months ended November 30, 2021, the Company sold 520,076 shares for gross proceeds of $15.2 million at an average price of $29.16 for aggregate net proceeds of $15.0 million (net of transaction cost). During the nine months ended November 30, 2021, the Company sold 525,517 shares for gross proceeds of $15.3 million at an average price of $29.15 for aggregate net proceeds of $15.2 million (net of transaction cost). 

On August 9, 2021, the Company exchanged its existing $17.9 million Class F-R-3 Notes for $8.5 million Class F-1-R-3 Notes and $9.4 million Class F-2-R-3 Notes at par. On August 11, 2021, the Company sold its Class F-1-R-3 Notes to third parties, resulting in a realized loss of $0.1 million.

The Company has formed a wholly owned special purpose entity, Saratoga Investment Funding II LLC, a Delaware limited liability company (“SIF II”), for the purpose of entering into a $50.0 million senior secured revolving credit facility with Encina Lender Finance, LLC (the “Lender”), supported by loans held by SIF II and pledged to the Lender under the credit facility (the “Encina Credit Facility). The Encina Credit Facility closed on October 4, 2021. During the first two years following the closing date, SIF II may request an increase in the commitment amount under the Encina Credit Facility to up to $75.0 million. The terms of the Encina Credit Facility require a minimum drawn amount of $12.5 million at all times during the first six months following the closing date, which increases to the greater of $25.0 million or 50% of the commitment amount in effect at any time thereafter. The term of the Encina Credit Facility is three years. Advances under the Encina Credit Facility bear interest at a floating rate per annum equal to LIBOR plus 4.0%, with LIBOR having a floor of 0.75%, with customary provisions related to the selection by the Lender and the Company of a replacement benchmark rate. Concurrently with the closing of the Encina Credit Facility, all remaining amounts outstanding on the Company’s existing revolving credit facility with Madison Capital Funding, LLC were repaid and the facility terminated.

On October 26, 2021, the Company and TJHA JV I LLC entered into a Limited Liability Company Agreement (the “LLC Agreement”) to co-manage Saratoga Senior Loan Fund I JV LLC (“Saratoga JV”). Saratoga JV is a joint venture that is expected to invest in the debt or equity interests of collateralized loan obligations, loans, notes and other debt instruments.

Critical Accounting Policies

 

Basis of Presentation

 

The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make certain estimates and assumptions affecting amounts reported in the Company’s consolidated financial statements. We have identified investment valuation, revenue recognition and the recognition of capital gains incentive fee expense as our most critical accounting estimates. We continuously evaluate our estimates, including those related to the matters described below. These estimates are based on the information that is currently available to us and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions or conditions. A discussion of our critical accounting policies follows.

 

Investment Valuation

 

The Company accounts for its investments at fair value in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires the Company to assume that its investments are to be sold or its liabilities are to be transferred at the balance sheet date in the principal market to independent market participants, or in the absence of a principal market, in the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact.


Investments for which market quotations are readily available are fair valued at such market quotations obtained from independent third-party pricing services and market makers subject to any decision by our board of directors to approve a fair value determination to reflect significant events affecting the value of these investments. We value investments for which market quotations are not readily available at fair value as approved, in good faith, by our board of directors based on input from Saratoga Investment Advisors, the audit committee of our board of directors and a third party independent valuation firm. We use multiple techniques for determining fair value based on the nature of the investment and experience with those types of investments and specific portfolio companies. The selections of the valuation techniques and the inputs and assumptions used within those techniques often require subjective judgements and estimates. These techniques include market comparables, discounted cash flows and enterprise value waterfalls. Fair value is best expressed as a range of values from which the Company determines a single best estimate. The types of inputs and assumptions that may be considered in determining the range of values of our investments include the nature and realizable value of any collateral, the portfolio company’s ability to make payments, market yield trend analysis and volatility in future interest rates, call and put features, the markets in which the portfolio company does business, comparison to publicly traded companies, discounted cash flows and other relevant factors.

 

We undertake a multi-step valuation process each quarter when valuing investments for which market quotations are not readily available, as described below: 

 

●Each investment is initially valued by the responsible investment professionals of Saratoga Investment Advisors and preliminary valuation conclusions are documented and discussed with our senior management; and

 

●An independent valuation firm engaged by our board of directors independently reviews a selection of these preliminary valuations each quarter so that the valuation of each investment for which market quotes are not readily available is reviewed by the independent valuation firm at least once each fiscal year. We use a third-party independent valuation firm to value our investment in the subordinated notes of Saratoga CLO and the Class F-R-3F-2-R-3 Notes tranche of the Saratoga CLO every quarter.

 

In addition, all our investments are subject to the following valuation process:

 

●The audit committee of our board of directors reviews and approves each preliminary valuation and Saratoga Investment Advisors and an independent valuation firm (if applicable) will supplement the preliminary valuation to reflect any comments provided by the audit committee; and

 

●Our board of directors discusses the valuations and approves the fair value of each investment, in good faith, based on the input of Saratoga Investment Advisors, independent valuation firm (to the extent applicable) and the audit committee of our board of directors.

 

Our investment in Saratoga CLO is carried at fair value, which is based on a discounted cash flows that utilizes prepayment, re-investment and loss assumptions based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and market comparables for equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by Saratoga Investment Advisors and recommended to our board of directors. Specifically, we use Intex cash flows, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The cash flows use a set of inputs including projected default rates, recovery rates, reinvestment rate and prepayment rates in order to arrive at estimated valuations. The inputs are based on available market data and projections provided by third parties as well as management estimates. We use the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine a valuation for our investment in Saratoga CLO.


Revenue Recognition

 

Income Recognition

 

Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis to the extent that such amounts are expected to be collected. The Company stops accruing interest on its investments when it is determined that interest is no longer collectible. Discounts and premiums on investments purchased are accreted/amortized over the life of the respective investment using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of discounts and amortization of premiums on investments.

  

Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reserved when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as a reduction in principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection.

 


Payment-in-Kind Interest

 

The Company holds debt and preferred equity investments in its portfolio that contain a payment-in-kind (“PIK”) interest provision. The PIK interest, which represents contractually deferred interest added to the investment balance that is generally due at maturity, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. We stop accruing PIK interest if we do not expect the issuer to be able to pay all principal and interest when due.

Revenues

 

We generate revenue in the form of interest income and capital gains on the debt investments that we hold and capital gains, if any, on equity interests that we may acquire. We expect our debt investments, whether in the form of leveraged loans or mezzanine debt, to have terms of up to ten years, and to bear interest at either a fixed or floating rate. Interest on debt will be payable generally either quarterly or semi-annually. In some cases, our debt or preferred equity investments may provide for a portion or all of the interest to be PIK. To the extent interest is PIK, it will be payable through the increase of the principal amount of the obligation by the amount of interest due on the then-outstanding aggregate principal amount of such obligation. The principal amount of the debt and any accrued but unpaid interest will generally become due at the maturity date. In addition, we may generate revenue in the form of commitment, origination, structuring or diligence fees, fees for providing managerial assistance or investment management services and possibly consulting fees. Any such fees will be generated in connection with our investments and recognized as earned. We may also invest in preferred equity or common equity securities that pay dividends on a current basis.

 

On January 22, 2008, we entered into a collateral management agreement with Saratoga CLO, pursuant to which we act as its collateral manager. The Saratoga CLO was initially refinanced in October 2013 with its reinvestment period extended to October 2016. On November 15, 2016, we completed a second refinancing of the Saratoga CLO with its reinvestment period extended to October 2018.

 

On December 14, 2018, we completed a third refinancing and upsize of the Saratoga CLO. The third Saratoga CLO refinancing, among other things, extended its reinvestment period to January 2021, and extended its legal maturity date to January 2030. A non-call period of January 2020 was also added. Following this refinancing, the Saratoga CLO portfolio increased its aggregate principal amount from approximately $300.0 million in aggregate principal amount to approximately $500.0 million of predominantly senior secured first lien term loans. In addition to refinancing its liabilities, we invested an additional $13.8 million in all of the newly issued subordinated notes of the Saratoga CLO and also purchased $2.5 million in aggregate principal amount of the Class F-R-2 and $7.5 million in aggregate principal amount of the Class G-R-2 notes tranches at par, with a coupon of LIBOR plus 8.75% and LIBOR plus 10.00%, respectively. As part of this refinancing, we also redeemed our existing $4.5 million aggregate amount of the Class F notes tranche at par.

 


On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. A non-call period ending February 2022 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. As of MayAt August 31, 2021, there remained anthe outstanding receivable of $2.6 million was repaid in full.

On August 9, 2021, the Company exchanged its existing $17.9 million Class F-R-3 Notes for such transaction costs which is presented as due from affiliate on$8.5 million Class F-1-R-3 Notes and $9.4 million Class F-2-R-3 Notes at par. On August 11, 2021, the Company’s consolidated statementCompany sold its Class F-1-R-3 Notes to third parties, resulting in a realized loss of assets and liabilities.$0.1 million.

 

The Saratoga CLO remains effectively 100% owned and managed by Saratoga Investment Corp. We receive a base management fee of 0.10% per annum and a subordinated management fee of 0.40% per annum of the outstanding principal amount of Saratoga CLO’s assets, paid quarterly to the extent of available proceeds. Prior to the second refinancing and the issuance of the 2013-1 Amended CLO Notes, we received a base management fee of 0.25% per annum and a subordinated management fee of 0.25% per annum of the outstanding principal amount of Saratoga CLO’s assets, paid quarterly to the extent of available proceeds.

 

Following the third refinancing and the issuance of the 2013-1 Reset CLO Notes on December 14, 2018, we are no longer entitled to an incentive management fee equal to 20.0% of excess cash flow to the extent the Saratoga CLO subordinated notes receive an internal rate of return paid in cash equal to or greater than 12.0%.

 

Interest income on our investment in Saratoga CLO is recorded using the effective interest method in accordance with the provisions of ASC Topic 325-40, Investments-Other, Beneficial Interests in Securitized Financial Assets (“ASC 325-40”), based on the anticipated yield and the estimated cash flows over the projected life of the investment. Yields are revised when there are changes in actual or estimated cash flows due to changes in prepayments and/or re-investments, credit losses or asset pricing. Changes in estimated yield are recognized as an adjustment to the estimated yield over the remaining life of the investment from the date the estimated yield was changed.

 


Expenses

 

Our primary operating expenses include the payment of investment advisory and management fees, professional fees, directors and officers insurance, fees paid to independent directors and administrator expenses, including our allocable portion of our administrator’s overhead. Our investment advisory and management fees compensate our Manager for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all other costs and expenses of our operations and transactions, including those relating to:

 

●organization;

 

●calculating our net asset value (including the cost and expenses of any independent valuation firm);

 

●expenses incurred by our Manager payable to third parties, including agents, consultants or other advisers, in monitoring our financial and legal affairs and in monitoring our investments and performing due diligence on our prospective portfolio companies;

 

●expenses incurred by our Manager payable for travel and due diligence on our prospective portfolio companies;

 

●interest payable on debt, if any, incurred to finance our investments;

 

●offerings of our common stock and other securities;

 

●investment advisory and management fees;

 

●fees payable to third parties, including agents, consultants or other advisers, relating to, or associated with, evaluating and making investments;

 


●transfer agent and custodial fees;

 

●federal and state registration fees;

 

●all costs of registration and listing our common stock on any securities exchange;

 

●federal, state and local taxes;

 

●independent directors’ fees and expenses;

 

●costs of preparing and filing reports or other documents required by governmental bodies (including the U.S. Securities and Exchange Commission (“SEC”) and the SBA);

 

●costs of any reports, proxy statements or other notices to common stockholders including printing costs;

 

●our fidelity bond, directors and officers errors and omissions liability insurance, and any other insurance premiums;

 

●direct costs and expenses of administration, including printing, mailing, long distance telephone, copying, secretarial and other staff, independent auditors and outside legal costs; and

 

●administration fees and all other expenses incurred by us or, if applicable, the administrator in connection with administering our business (including payments under the Administration Agreement based upon our allocable portion of the administrator’s overhead in performing its obligations under an Administration Agreement, including rent and the allocable portion of the cost of our officers and their respective staffs (including travel expenses)).

 

Pursuant to the investment advisory and management agreement that we had with GSCP (NJ), L.P., our former investment adviser and administrator, we had agreed to pay GSCP (NJ), L.P. as investment adviser a quarterly base management fee of 1.75% of the average value of our total assets (other than cash or cash equivalents but including assets purchased with borrowed funds) at the end of the two most recently completed fiscal quarters and an incentive fee.

 

The incentive fee had two parts:

 

●A fee, payable quarterly in arrears, equal to 20.0% of our pre-incentive fee net investment income, expressed as a rate of return on the value of the net assets at the end of the immediately preceding quarter, that exceeded a 1.875% quarterly hurdle rate measured as of the end of each fiscal quarter. Under this provision, in any fiscal quarter, our former investment adviser received no incentive fee unless our pre-incentive fee net investment income exceeded the hurdle rate of 1.875%. Amounts received as a return of capital were not included in calculating this portion of the incentive fee. Since the hurdle rate was based on net assets, a return of less than the hurdle rate on total assets could still have resulted in an incentive fee.

 


●A fee, payable at the end of each fiscal year, equal to 20.0% of our net realized capital gains, if any, computed net of all realized capital losses and unrealized capital depreciation, in each case on a cumulative basis on each investment in the Company’s portfolio, less the aggregate amount of capital gains incentive fees paid to our former investment adviser through such date.

 

We deferred cash payment of any incentive fee otherwise earned by our former investment adviser if, during the then most recent four full fiscal quarters ending on or prior to the date such payment was to be made, the sum of (a) our aggregate distributions to our stockholders and (b) our change in net assets (defined as total assets less liabilities) (before taking into account any incentive fees payable during that period) was less than 7.5% of our net assets at the beginning of such period. These calculations were appropriately pro-rated for the first three fiscal quarters of operation and adjusted for any share issuances or repurchases during the applicable period. Such incentive fee would become payable on the next date on which such test had been satisfied for the most recent four full fiscal quarters or upon certain terminations of the investment advisory and management agreement. We commenced deferring cash payment of incentive fees during the quarterly period ended August 31, 2007 and continued to defer such payments through the quarterly period ended May 31, 2010. As of July 30, 2010, the date on which GSCP (NJ), L.P. ceased to be our investment adviser and administrator, we owed GSCP (NJ), L.P. $2.9 million in fees for services previously provided to us; of which $0.3 million has been paid by us. GSCP (NJ), L.P. agreed to waive payment by us of the remaining $2.6 million in connection with the consummation of the stock purchase transaction with Saratoga Investment Advisors and certain of its affiliates described elsewhere in this Quarterly Report.

 


The terms of the investment advisory and management agreement with Saratoga Investment Advisors, our current investment adviser, are substantially similar to the terms of the investment advisory and management agreement we had entered into with GSCP (NJ), L.P., our former investment adviser, except for the following material distinctions in the fee terms:

 

●The capital gains portion of the incentive fee was reset with respect to gains and losses from May 31, 2010, and therefore losses and gains incurred prior to such time will not be taken into account when calculating the capital gains fee payable to Saratoga Investment Advisors and, as a result, Saratoga Investment Advisors will be entitled to 20.0% of net gains that arise after May 31, 2010. In addition, the cost basis for computing realized gains and losses on investments held by us as of May 31, 2010 equal the fair value of such investment as of such date. Under the investment advisory and management agreement with our former investment adviser, GSCP (NJ), L.P., the capital gains fee was calculated from March 21, 2007, and the gains were substantially outweighed by losses.

 

●Under the “catch up” provision, 100.0% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income that exceeds 1.875% but is less than or equal to 2.344% in any fiscal quarter is payable to Saratoga Investment Advisors. This will enable Saratoga Investment Advisors to receive 20.0% of all net investment income as such amount approaches 2.344% in any quarter, and Saratoga Investment Advisors will receive 20.0% of any additional net investment income. Under the investment advisory and management agreement with our former investment adviser, GSCP (NJ), L.P. only received 20.0% of the excess net investment income over 1.875%.

 

●We will no longer have deferral rights regarding incentive fees in the event that the distributions to stockholders and change in net assets is less than 7.5% for the preceding four fiscal quarters.

 

Capital Gains Incentive Fee

 

The Company records an expense accrual relating to the capital gains incentive fee payable by the Company to its Manager when the unrealized gains on its investments exceed all realized capital losses on its investments given the fact that a capital gains incentive fee would be owed to the Manager if the Company were to liquidate its investment portfolio at such time. The actual incentive fee payable to the Company’s Manager related to capital gains will be determined and payable in arrears at the end of each fiscal year and will include only realized capital gains for the period.

 

New Accounting Pronouncements

 

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The Company has agreements that have LIBOR as a reference rate with certain portfolio companies and under the Encina Credit Facility. Many of these agreements (including the credit agreements relating to the Encina Credit Facility) include an alternative successor rate or language for choosing an alternative successor rate when LIBOR reference is no longer considered to be appropriate. With respect to other agreements, the Company intends to work with its portfolio companies to modify agreements to choose an alternative successor rate. Contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. The standard is effective as of March 12, 2020 through December 31, 2022. Management does not believe this optional guidance has a material impact on the Company’s consolidated financial statements and disclosures.

 


Portfolio and Investment Activity

 

Investment Portfolio Overview

 

  May 31, 2021  February 28, 2021 
  

($ in millions)

 
Number of investments(1)  90   81 
Number of portfolio companies(2)  44   40 
Average investment per portfolio company(2) $14.2  $12.6 
Average investment size(1) $7.1  $6.5 
Weighted average maturity(3)  3.1 yrs   3.2 yrs 
Number of industries  31   31 
Non-performing or delinquent investments (fair value) $2.2  $2.1 
Fixed rate debt (% of interest earning portfolio)(3) $23.2(4.1%) $23.3(4.8%)
Fixed rate debt (weighted average current coupon)(3)  9.7%  9.8%
Floating rate debt (% of interest earning portfolio)(3) $538.4(95.9%) $462.6(95.2%)
Floating rate debt (weighted average current spread over LIBOR)(3)(4)  7.8%  7.4%

  November 30,
2021		  February 28,
2021		 
  ($ in millions) 
Number of investments(1)  88   81 
Number of portfolio companies(2)  42   40 
Average investment per portfolio company(2) $14.8  $12.6 
Average investment size(1) $7.2  $6.5 
Weighted average maturity(3)  3.1 yrs   3.2 yrs 
Number of industries  34   31 
Non-performing or delinquent investments (fair value) $-  $2.1 
Fixed rate debt (% of interest earning portfolio)(3) $16.9(3.0%) $23.3(4.8%)
Fixed rate debt (weighted average current coupon)(3)  10.1%  9.8%
Floating rate debt (% of interest earning portfolio)(3) $545.3(97.0%) $462.6(95.2%)
Floating rate debt (weighted average current spread over LIBOR)(3)(4)  7.3%  7.4%

 

 

(1)Excludes our investment in the subordinated notes of Saratoga CLO.

(2)ExcludesAt November 30, 2021, excludes our investment in the subordinated notes of Saratoga CLO and Class F-R-3F-2-R-3 Note tranche of Saratoga CLO. At February 28, 2021, excludes our investment in the subordinated notes of Saratoga CLO, Class F-R-3 Notes tranches of Saratoga CLO.

(3)Excludes our investment in the subordinated notes of Saratoga CLO and equity interests.

(4)Calculation uses either 1-month or 3-month LIBOR, depending on the contractual terms, and after factoring in any existing LIBOR floors.

 

During the three months ended May 31,November 30, 2021, we invested $119.2$58.6 million in new or existing portfolio companies and had $14.9 million in aggregate amount of exits and repayments resulting in net investments of $104.3 million for the period. During the three months ended May 31, 2020, we invested $39.0 million in new or existing portfolio companies and had $9.4$66.4 million in aggregate amount of exits and repayments resulting in net exits and repayments of $29.6$7.9 million for the period. During the three months ended November 30, 2020, we invested $51.3 million in new or existing portfolio companies and had $18.3 million in aggregate amount of exits and repayments resulting in net investment of $33.0 million for the period.

During the nine months ended November 30, 2021, we invested $293.8 million in new or existing portfolio companies and had $216.2 million in aggregate amount of exits and repayments resulting in net investments of $77.5 million for the period. During the nine months ended November 30, 2020, we invested $122.0 million in new or existing portfolio companies and had $50.9 million in aggregate amount of exits and repayments resulting in net investment of $71.1 million for the period.

 


Portfolio Composition

 

Our portfolio composition at May 31,November 30, 2021 and February 28, 2021 at fair value was as follows:

  November 30, 2021  February 28, 2021 
  Percentage
of Total
Portfolio		  Weighted
Average
Current
Yield		  Percentage
of Total
Portfolio		  Weighted
Average
Current
Yield		 
First lien term loans  76.4%  8.6%  79.5%  9.5%
Second lien term loans  6.8   11.1   4.4   12.3 
Unsecured term loans  0.4   8.1   0.4   - 
Structured finance securities  6.1   11.6   9.0   11.6 
Equity interests  10.3   -   6.7   - 
Total  100.0%  8.1%  100.0%  9.1%

 

  May 31, 2021  February 28, 2021 
  Percentage
of Total
Portfolio		  Weighted
Average
Current
Yield		  Percentage
of Total
Portfolio		  Weighted
Average
Current
Yield		 
First lien term loans  76.2%  9.4%  79.5%  9.5%
Second lien term loans  3.7   12.0   4.4   12.3 
Unsecured term loans  0.3   -   0.4   - 
Structured finance securities  7.9   13.3   9.0   11.6 
Equity interests  11.9   -   6.7   - 
Total  100.0%  8.6%  100.0%  9.1%


At May 31,November 30, 2021, our investment in the subordinated notes of Saratoga CLO, a collateralized loan obligation fund, had a fair value of $35.5$31.3 million and constituted 5.2%4.7% of our portfolio. This investment constitutes a first loss position in a portfolio that, as of May 31,November 30, 2021 and February 28, 2021, was composed of $685.6$683.2 million and $603.7 million, respectively, in aggregate principal amount of primarily senior secured first lien term loans. In addition, as of May 31,November 30, 2021, we also own $17.9$9.4 million in aggregate principal of the F-R-3F-2-R-3 Notes in the Saratoga CLO, thatwhich only rank senior to the subordinated notes.

 

This investment is subject to unique risks. (See “Part 1. Item 1A. Risk Factors—Our investment in Saratoga CLO constitutes a leveraged investment in a portfolio of predominantly senior secured first lien term loans and is subject to additional risks and volatility” in our Annual Report on Form 10-K for the fiscal year ended February 28, 2021).

 

We do not consolidate the Saratoga CLO portfolio in our consolidated financial statements. Accordingly, the metrics below do not include the underlying Saratoga CLO portfolio investments. However, at May 31,November 30, 2021, $667.0$660.5 million or 98.9%99.1% of the Saratoga CLO portfolio investments in terms of market value had a CMR (as defined below) color rating of green or yellow and one Saratoga CLO portfolio investments were in default with a fair value of $0.002 million.yellow. At February 28, 2021, $584.6 million or 98.7% of the Saratoga CLO portfolio investments in terms of market value had a CMR (as defined below) color rating of green or yellow and four Saratoga CLO portfolio investments were in default with a fair value of $0.8 million. For more information relating to the Saratoga CLO, see the audited financial statements for Saratoga in our Annual Report on Form 10-K for the fiscal year ended February 28, 2021.

 

Saratoga Investment Advisors normally grades all of our investments using a credit and monitoring rating system (“CMR”). The CMR consists of a single component: a color rating. The color rating is based on several criteria, including financial and operating strength, probability of default, and restructuring risk. The color ratings are characterized as follows: (Green)—performing credit; (Yellow)—underperforming credit; (Red)—in principal payment default and/or expected loss of principal.

 


Portfolio CMR distribution

 

The CMR distribution for our investments at May 31,November 30, 2021 and February 28, 2021 was as follows:

 

Saratoga Investment Corp.

 

 May 31, 2021  February 28, 2021  November 30, 2021 February 28, 2021 
Color Score Investments
at
Fair Value		  Percentage
of Total
Portfolio		  Investments
at
Fair Value		  Percentage
of Total
Portfolio		  Investments
at Fair
Value		 Percentage of
Total
Portfolio		 Investments
at Fair
Value		 Percentage of
Total
Portfolio		 
 ($ in thousands)  ($ in thousands) 
Green $521,723   77.0% $453,297   81.8% $534,319   80.7% $453,297   81.8%
Yellow  39,897   5.9   32,559   5.9   27,829   4.2   32,559   5.9 
Red  -   0.0   -   0.0   -   0.0   -   0.0 
N/A(1)  116,153   17.1   68,457   12.3   99,645   15.1   68,457   12.3 
Total $677,773   100.0% $554,313   100.0% $661,793   100.0% $554,313   100.0%

 

 

(1)Comprised of our investment in the subordinated notes of Saratoga CLO and equity interests.

 

The change in reserve from $1.2 million as of February 28, 2021 to $0.6$0.0 million as of May 31,November 30, 2021 was primarily related to the write-off of the interest accruals related to My Alarm Center, LLC, that we deemed non-recoverable.non-recoverable, as well as the release of the reserve for our Taco Mac investment that has gone back on accrual. As of November 30, 2021, there are no non-accrual investments.

 

The CMR distribution of Saratoga CLO investments at May 31,November 30, 2021 and February 28, 2021 was as follows:

Saratoga CLO

 

Saratoga CLO

  November 30, 2021  February 28, 2021 
Color Score Investments
at Fair
Value		  Percentage of
Total
Portfolio		  Investments
at Fair
Value		  Percentage of
Total
Portfolio		 
  ($ in thousands) 
Green $614,529   92.2% $514,183   86.8%
Yellow  45,935   6.9   70,415   11.9 
Red  6,245   0.9   6,921   1.2 
N/A(1)  -   0.0   501   0.1 
Total $666,709   100.0% $592,020   100.0%

 

  May 31, 2021  February 28, 2021 
Color Score Investments
at
Fair Value		  Percentage
of Total
Portfolio		  Investments
at
Fair Value		  Percentage
of Total
Portfolio		 
  ($ in thousands) 
Green $602,161   89.4% $514,183   86.8%
Yellow  64,878   9.6   70,415   11.9 
Red  5,928   0.9   6,921   1.2 
N/A(1)  467   0.1   501   0.1 
Total $673,434   100.0% $592,020   100.0%

 

(1)Comprised of Saratoga CLO’s equity interests.

 


Portfolio composition by industry grouping at fair value

 

The following table shows our portfolio composition by industry grouping at fair value at May 31,November 30, 2021 and February 28, 2021:

Saratoga Investment Corp.

 

 May 31, 2021  February 28, 2021  November 30, 2021 February 28, 2021 
 Investments
At
Fair Value		  Percentage
of Total
Portfolio		  Investments
At
Fair Value		  Percentage
of Total
Portfolio		  Investments
At Fair
Value		 Percentage of
Total
Portfolio		 Investments
At Fair
Value		 Percentage of
Total
Portfolio		 
 ($ in thousands)  ($ in thousands) 
Healthcare Software $86,517   13.1% $28,972   5.2%
IT Services $91,661   13.5% $73,087   13.2%  66,934   10.1   73,087   13.2 
Healthcare Services  42,043   6.4   42,410   7.7 
Structured Finance Securities(1)  40,665   6.1   49,779   9.0 
Specialty Food Retailer  34,576   5.2   -   0.0 
Education Services  34,013   5.1   40,384   7.1 
Education Software  89,699   13.2   88,090   15.9   31,640   4.8   88,090   15.9 
Healthcare Software  69,263   10.2   28,972   5.2 
Education Services  59,528   8.8   40,384   7.1 
Structured Finance Securities(1)  53,420   7.9   49,779   9.0 
Healthcare Services  41,953   6.2   42,410   7.7 
Consumer Services  30,998   4.7   181   0.0 
HVAC Services and Sales  27,936   4.2   14,894   2.7 
Sports Management  25,550   3.8   25,469   4.6   26,573   4.0   25,469   4.6 
Dental Practice Management Software  23,890   3.5   23,659   4.3   26,401   4.0   23,659   4.3 
Consumer Services  20,742   3.1   181   0.0 
HVAC Services and Sales  19,950   2.9   14,894   2.7 
Cyber Security  19,131   2.8   13,174   2.4 
Talent Acquisition Software  19,826   3.0   -   0.0 
Hospitality/Hotel  19,713   3.0   17,080   3.1 
Real Estate Services  18,288   2.8   18,032   3.3 
Mentoring Software  17,850   2.7   -   0.0 
Payroll Services  18,346   2.7   18,333   3.3   17,516   2.6   18,333   3.3 
Real Estate Services  18,186   2.7   18,032   3.3 
Corporate Governance  17,598   2.6   13,265   2.4 
Hospitality/Hotel  17,586   2.6   17,080   3.1 
Marketing Services  17,467   2.6   17,372   3.1   17,489   2.6   17,372   3.1 
Restaurant  15,618   2.4   2,141   0.4 
Facilities Maintenance  10,731   1.6   6,193   1.1   10,995   1.7   6,193   1.1 
Public Safety/Local Government Software  10,205   1.5   -   0.0 
Industrial Products  9,032   1.3   9,047   1.6 
Insurance Software  10,921   1.7   -   0.0 
Employee Collaboration Software  9,445   1.4   -   0.0 
Waste Services  9,000   1.3   9,000   1.6   9,000   1.4   9,000   1.6 
Dental Practice Management  8,808   1.3   7,133   1.3   8,516   1.3   7,133   1.3 
Industrial Products  8,391   1.3   9,047   1.6 
Non-profit Services  5,500   0.8   5,554   1.0   8,280   1.3   5,554   1.0 
Healthcare Supply  5,329   0.8   5,422   1.0   5,230   0.8   5,422   1.0 
Field Service Management  4,021   0.6   4,018   0.7   4,020   0.6   4,018   0.7 
Office Supplies  3,399   0.5   3,610   0.7   3,737   0.6   3,610   0.7 
Corporate Education Software  3,108   0.5   1,050   0.2   3,447   0.5   1,050   0.2 
Restaurant  2,169   0.3   2,141   0.4 
Staffing Services  969   0.1   925   0.2   1,893   0.3   925   0.2 
Cyber Security  1,636   0.2   13,174   2.4 
Healthcare Products Manufacturing  564   0.1   567   0.1   645   0.1   567   0.1 
Consumer Products  522   0.1   475   0.1   531   0.1   475   0.1 
Financial Services  446   0.1   419   0.1   511   0.1   419   0.1 
Corporate Governance  -   0.0   13,265   2.4 
Property Management  -   0.0   14,578   2.6   -   0.0   14,578   2.6 
Total $677,773   100.0% $554,313   100.0% $661,793   100.0% $554,313   100.0%

 

 

(1)ComprisedAs of November 30, 2021, comprised of our investment in the subordinated notes and Class F-2-R-3 Notes of Saratoga CLO. As of February 28, 2021, comprised of our investments in the subordinated notes and F-R-3 Notes of Saratoga CLO.

 


The following table shows Saratoga CLO’s portfolio composition by industry grouping at fair value at May 31,November 30, 2021 and February 28, 2021:

 

Saratoga CLO

 

 May 31, 2021  February 28, 2021  November 30, 2021 February 28, 2021 
 Investments
at
Fair Value		  Percentage
of Total
Portfolio		  Investments
at
Fair Value		  Percentage
of Total
Portfolio		  Investments
at Fair
Value		 Percentage of
Total
Portfolio		 Investments
at Fair
Value		 Percentage of
Total
Portfolio		 
 ($ in thousands)  ($ in thousands) 
Banking, Finance, Insurance & Real Estate $117,906   17.5% $105,326   17.9% $122,222   18.4% $105,326   17.9%
Services: Business  69,543   10.3   55,588   9.4   79,383   11.9   55,588   9.4 
High Tech Industries  56,509   8.5   50,106   8.5   62,590   9.4   50,106   8.5 
Healthcare & Pharmaceuticals  48,618   7.2   46,689   7.9   42,203   6.4   46,689   7.9 
Services: Consumer  45,182   6.7   31,604   5.4   40,085   6.0   31,604   5.4 
Telecommunications  32,173   4.8   29,878   5.1   31,171   4.8   29,878   5.1 
Aerospace & Defense  28,600   4.3   25,952   4.4 
Automotive  26,524   3.9   19,159   3.2   26,724   4.0   19,159   3.2 
Containers, Packaging & Glass  22,025   3.3   18,822   3.2 
Chemicals, Plastics, & Rubber  23,117   3.4   23,302   3.9   20,911   3.0   23,302   3.9 
Hotel, Gaming & Leisure  22,315   3.3   20,515   3.4 
Media: Advertising, Printing & Publishing  21,700   3.3   19,826   3.3   20,786   3.0   19,826   3.3 
Containers, Packaging & Glass  19,347   2.9   18,822   3.2 
Consumer goods: Durable  19,014   2.9   13,143   2.1 
Beverage, Food & Tobacco  19,687   2.9   17,998   3.1   18,806   2.8   17,998   3.1 
Consumer goods: Non-durable  19,129   2.8   19,343   3.3   18,628   2.8   19,343   3.3 
Consumer goods: Durable  17,146   2.5   13,143   2.1 
Capital Equipment  12,406   1.8   9,961   1.7 
Construction & Building  12,081   1.8   5,362   0.9 
Hotel, Gaming & Leisure  18,186   2.7   20,515   3.4 
Aerospace & Defense  17,412   2.6   25,952   4.4 
Retail  11,686   1.7   12,880   2.1   15,168   2.3   12,880   2.1 
Media: Broadcasting & Subscription  8,958   1.3   9,426   1.6   11,851   1.8   9,426   1.6 
Construction & Building  11,569   1.7   5,362   0.9 
Capital Equipment  10,397   1.6   9,961   1.7 
Forest Products & Paper  8,937   1.3   6,954   1.2   9,299   1.4   6,954   1.2 
Media: Diversified & Production  9,224   1.4   6,035   1.0 
Utilities: Oil & Gas  8,166   1.2   8,235   1.3   8,101   1.2   8,235   1.3 
Media: Diversified & Production  7,912   1.2   6,035   1.0 
Metals & Mining  7,475   1.1   6,127   1.0   6,888   1.0   6,127   1.0 
Wholesale  5,701   0.9   5,841   1.0 
Transportation: Consumer  5,891   0.9   6,183   1.0   4,932   0.7   6,183   1.0 
Wholesale  5,804   0.9   5,841   1.0 
Utilities: Electric  4,115   0.6   4,209   0.7 
Energy: Electricity  3,811   0.6   4,547   0.8 
Transportation: Cargo  5,234   0.8   5,812   1.0   3,796   0.6   5,812   1.0 
Energy: Electricity  3,820   0.6   4,547   0.8 
Utilities: Electric  4,175   0.6   4,209   0.7 
Environmental Industries  1,568   0.2   989   0.2 
Energy: Oil & Gas  1,912   0.3   2,208   0.4   143   0.0   2,208   0.4 
Environmental Industries  1,481   0.2   989   0.2 
Total $673,434   100.0% $592,020   100.0% $666,709   100.0% $592,020   100.0%

 


Portfolio composition by geographic location at fair value

 

The following table shows our portfolio composition by geographic location at fair value at May 31,November 30, 2021 and February 28, 2021. The geographic composition is determined by the location of the corporate headquarters of the portfolio company.

 

 May 31, 2021 February 28, 2021  November 30, 2021 February 28, 2021 
 Investments
at
Fair Value		 Percentage
of Total
Portfolio		 Investments
at
Fair Value		 Percentage
of Total
Portfolio		  Investments
at
Fair Value		 Percentage
of Total
Portfolio		 Investments
at
Fair Value		 Percentage
of Total
Portfolio		 
 ($ in thousands)  ($ in thousands) 
Southeast $192,393   28.4% $167,397   30.2% $251,294   38.0% $167,397   30.2%
West  171,118   25.2   145,907   26.3   162,908   24.6   145,907   26.3 
Midwest  114,942   17.0   110,125   19.9   121,439   18.4   110,125   19.9 
Other  74,616   11.0   39,334   7.1 
Northeast  39,931   5.9   13,174   2.4   48,959   7.4   7,314   1.3 
Southwest  31,568   4.8   39,334   7.1 
Northwest  19,131   2.8   7,314   1.3   1,636   0.2   13,174   2.4 
Southwest(1)  65,642   9.7   71,062   12.8 
Other(1)  43,989   6.6   71,062   12.8 
Total $677,773   100.0% $554,313   100.0% $661,793   100.0% $554,313   100.0%

 

 

(1)ComprisedAs of November 30, 2021, comprised of our investmentinvestments in the subordinated notes, Class F-R-2 Notes and Class G-R-2F-2-R-3 Notes of Saratoga CLO and foreign investments. As of February 28, 2021, comprised of our investments in the subordinated notes, F-R-3 Notes of Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd and foreign investments.

Results of operations

 

Operating results for the three and nine months ended May 31,November 30, 2021 and May 31,November 30, 2020 was as follows:

 

  For the three months ended 
  May 31, 2021  May 31, 2020 
  ($ in thousands) 
Total investment income $16,816  $13,297 
Total operating expenses  14,260   4,279 
Net investment income  2,556   9,018 
Net realized gain (loss) from investments  1,910   8 
Income tax (provision) benefit from realized gain on investments  -   - 
Net change in unrealized appreciation (depreciation) on investments  16,813   (31,950)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  (230)  268 
Net increase (decrease) in net assets resulting from operations $21,049  $(22,656)

  For the three months ended  For the nine months ended 
  November 30,
2021		  November 30,
2020		  November 30,
2021		  November 30,
2020		 
  ($ in thousands) 
Total investment income $16,502  $14,283  $51,760  $41,435 
Total operating expenses  11,305   9,812   37,614   22,611 
Net investment income  5,197   4,471   14,146   18,824 
Net realized gain (loss) from investments  9,917   2   13,329   22 
Income tax (provision) benefit from realized gain on investments  (2,447)  (3,895)  (2,896)  (3,895)
Net change in unrealized appreciation (depreciation) on investments  (6,043)  5,999   14,146   (9,371)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  2,480   (210)  921   (59)
Realized losses on extinguishment of debt  (764)  -   (2,316)    
Net increase (decrease) in net assets resulting from operations $8,340  $6,367  $37,330  $5,521 

 


Investment income

 

The composition of our investment income for three and nine months ended May 31,November 30, 2021 and May 31,November 30, 2020 was as follows:

 

 For the three months ended  For the three months ended For the nine months ended 
 May 31, 2021 May 31, 2020  November 30,
2021		 November 30,
2020		 November 30,
2021		 November 30,
2020		 
 ($ in thousands)  ($ in thousands) 
Interest from investments $13,687  $12,150  $14,137  $12,804  $42,938  $37,215 
Interest from cash and cash equivalents  -   12   1   1   2   14 
Management fee income  818   635   816   624   2,449   1,884 
Dividend Income  538   13   1,595   13 
Structuring and advisory fee income  1,302   313   582   545   2,923   1,798 
Other income  1,009   187   428   296   1,853   511 
Total investment income $16,816  $13,297  $16,502  $14,283  $51,760  $41,435 

 

For the three months ended May 31,November 30, 2021, total investment income increased $3.5$2.2 million, or 26.5%15.5% to $16.8$16.5 million from $13.3$14.3 million for the three months ended May 31,November 30, 2020. Interest income from investments increased $1.5$1.3 million, or 12.6%10.4%, to $13.7$14.1 million for the three months ended May 31,November 30, 2021 from $12.2$12.8 million for the three months ended May 31,November 30, 2020. This reflects the impact of the increase of $195.0$115.0 million, or 40.3%21.0% in total investments at May 31,November 30, 2021 from $482.9$546.9 million at May 31,November 30, 2020, partially offset by (i) the reduction in LIBOR and interest spreads during this same period and (ii) the increase in equity positions that are not interest-bearing. At May 31,November 30, 2021, the weighted average current yield on investments was 8.6%8.1%, down from 9.6%9.4% at May 31,November 30, 2020, which offset some of the impact resulting from the increased investments.

 

For the threenine months ended May 31,November 30, 2021, total investment income increased $10.3 million, or 24.9% to $51.8 million from $41.4 million for the nine months ended November 30, 2020. Interest income from investments increased $5.7 million, or 15.4%, to $42.9 million for the nine months ended November 30, 2021 from $37.2 million for the nine months ended November 30, 2020. This reflects the impact of the increase of $115.0 million, or 21.0% in total investments at November 30, 2021 from $546.9 million at November 30, 2020, partially offset by (i) the reduction in LIBOR and interest spreads during this same period and (ii) the increase in equity positions that are not interest-bearing.

For the three and nine months ended November 30, 2021 and May 31,November 30, 2020, total PIK income was $0.2 million and $0.3 million, respectively and $0.7$1.3 million and $1.4 million, respectively.

 

Management fee income reflects the fee income received for managing the Saratoga CLO. For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, total management fee income was $0.8 million and $0.6 million, respectively, withrespectively. For the nine months ended November 30, 2021 and November 30, 2020, total management fee income was $2.4 million and $1.9 million, respectively. The increase is reflecting the upsizing of the CLO last quarter andat year-end with greater management fees being earned on the increased assets under management in the CLO.

 

For the three and nine months ended May 31,November 30, 2021 and November 30, 2020, total dividend income was $0.5 million and $0.01 million, respectively, and $1.6 million and $0.01 million, respectively. Dividends received is recorded in the consolidated statements of operations when earned, and the increase primarily reflects dividend income received on various preferred equity investments.

For the three and nine months ended November 30, 2021 and November 30, 2020, total structuring and advisory fee income was $1.3$0.6 million and $0.3$0.5 million, respectively, and $2.9 million and $1.8 million, respectively. Structuring and advisory fee income represents fee income earned and received performing certain investment and advisory activities during the closing of new investments.investments, with the increase primarily reflecting the increased originations during the period.

 

For the three and nine months ended May 31,November 30, 2021 and November 30, 2020, other income was $1.0$0.4 million and $0.2$0.3 million, respectively, and $1.9 million and $0.5 million, respectively. Other income includes dividends received, origination fees and prepayment income fees and is recorded in the consolidated statements of operations when earned. The increase was driven primarily by prepayment penalties earned from certain redemptions.

 


Operating expenses

 

The composition of our operating expenses for the three and nine months ended May 31,November 30, 2021 and May 31,November 30, 2020 was as follows:

 

 For the three months ended  For the three months ended For the six months ended 
 May 31, 2021  May 31, 2020  November 30,
2021		 November 30,
2020		 November 30,
2021		 November 30,
2020		 
 ($ in thousands)  ($ in thousands) 
Interest and debt financing expenses $4,341  $2,564  $4,843  $3,560  $14,368  $9,452 
Base management fees  2,759   2,160   2,923   2,324   8,685   6,694 
Incentive management fees expense (benefit)  5,263   (1,858)  2,417   2,295   9,698   1,966 
Professional fees  507   387   (104)  503   863   1,258 
Administrator expenses  694   556   750   694   2,156   1,852 
Insurance  86   68   85   67   258   203 
Directors fees and expenses  92   60   73   60   266   195 
General & administrative and other expenses  491   351   358   279   1,302   963 
Income tax expense (benefit)  28   (9)  (40)  30   18   28 
Total operating expenses $14,260  $4,279  $11,305  $9,812  $37,614  $22,611 

 

For the three months ended May 31,November 30, 2021, total operating expenses increased $10.0$1.5 million, or 233.3%15.2% compared to the three months ended May 31,November 30, 2020. For the nine months ended November 30, 2021, total operating expenses increased $15.0 million, or 66.3% compared to the nine months ended November 30, 2020.

 

For the three months ended May 31,November 30, 2021, interest and debt financing expenses increased $1.8$1.3 million, or 69.3%36.0% compared to the three months ended May 31,November 30, 2020. The increase is primarily attributable to aan increase in average outstanding debt from $217.4$278.4 million for the three months ended May 31,November 30, 2020 to $286.2$423.8 million for the three months ended May 31,November 30, 2021, primarily reflecting the issuance of the 4.375% 2026 Notes during the three months ended November 30, 2021, partially offset by the full redemption of the 6.25% 2025 Notes.

For the nine months ended November 30, 2021, interest and debt financing expenses increased $4.9 million, or 52.0% compared to the nine months ended November 30, 2020. The increase is primarily attributable to an increase in average outstanding debt from $253.6 million for the nine months ended November 30, 2020 to $393.4 million for the nine months ended November 30, 2021, primarily reflecting the issuance of various Notesunsecured notes during the year ended February 28, 2021 and the nine months ended November 30, 2021, including the 7.25% 2025 Notes, the 7.75% 2025 Notes and the 6.25% 2027 Notes, and the issuance of the 4.375% 2026 Notes, duringpartially offset by the quarter ended May 31, 2021.full redemption of the 6.25% 2025 Notes.

 

For the three and nine months ended May 31,November 30, 2021 and November 30, 2020, the weighted average interest rate on our outstanding indebtedness was 5.27% compared to 4.01% for the three months ended May 31, 2020.3.98% and 4.42%, respectively and 4.24% and 6.41%, respectively. The increasedecrease in weighted average interest rate was primarily driven by the issuance of the various higher-ratelower-rate 4.375% 2026 Notes noted above(as described above) in addition to lower cost SBA debentures over the past year.

 

As of May 31,November 30, 2021 and February 28, 2021, the SBA debentures represented 44.2%45.2% and 56.2% of overall debt, respectively.

 

For the three months ended May 31,November 30, 2021, base management fees increased $0.6 million, or 27.7%25.8% from $2.2$2.3 million to $2.8$3.0 million compared to the three months ended May 31,November 30, 2020. The increase in base management fees results from the 27.7%25.8% increase in the average value of our total assets, less cash and cash equivalents, from $489.8$532.8 million for the three months ended May 31,November 30, 2020 to $625.5$670.1 million for the three months ended May 31,November 30, 2021. For the nine months ended November 30, 2021, base management fees increased $2.0 million, or 29.7% from $6.7 million to $8.7 million compared to the nine months ended November 30, 2020. The increase in base management fees results from the 29.7% increase in the average value of our total assets, less cash and cash equivalents, from $507.7 million for the nine months ended November 30, 2020 to $658.7 million for the nine months ended November 30, 2021.

 

For the three months ended May 31,November 30, 2021, incentive management fees increased $7.1$0.1 million, or 383.2%5.3%, compared to the three months ended May 31,November 30, 2020. The first part of the incentive management fees increased from $1.4$1.2 million for the three months ended May 31,November 30, 2020 to $1.6$1.5 million for the three months ended May 31,November 30, 2021, reflecting the increased performance during this quarter. The incentive management fees related to capital gains decreased from a $1.1 million expense for the three months ended November 30, 2020 to a $0.9 million expense for the three months ended November 30, 2021, both reflecting the incentive fee income on net unrealized appreciation recognized during both these periods.


For the nine months ended November 30, 2021, incentive management fees increased $7.7 million, compared to the nine months ended November 30, 2020. The first part of the incentive management fees increased from $4.0 million for the nine months ended November 30, 2020 to $4.8 million for the nine months ended November 30, 2021, reflecting the increased performance during this quarter. The incentive management fees related to capital gains increased from a $(3.3)$(2.0) million benefit for the threenine months ended May 31,November 30, 2020 to a $3.7$4.9 million expense for the threenine months ended May 31,November 30, 2021, reflecting the incentive fee income on net unrealized depreciation recognized last year and the incentive fee expense on net unrealized appreciation this quarter across numerous investments.

 

For the three and nine months ended May 31,November 30, 2021, professional fees increased $0.1decreased $0.6 million, or 31.1%120.8%, and decreased $0.4 million, or 31.3%, respectively, compared to the three and nine months ended May 31,November 30, 2020. This decrease primarily reflects optimization across accounting, legal and consulting fees in connection with an increase in our assets and the Company bringing certain services in-house.

 

For the three and nine months ended May 31,November 30, 2021, administrator expenses increased $0.1$0.05 million, or 24.7%8.1%, and increased $0.3 million, or 16.4%, respectively, compared to the three and nine months ended May 31,November 30, 2020. These increases during the period are primarily attributable to an increase to the cap on the payment or reimbursements of expenses by the Company.

 


As discussed above, the increase in interest and debt financing expenses for the three months ended May 31,November 30, 2021 compared to the three months ended May 31,November 30, 2020 is primarily attributable to aan increase in the average dollar amount of outstanding debt. During the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the average borrowings outstanding under the Encina Credit Facility and the Madison Credit Facility was $4.1$9.2 million and $0.0 million, respectively. For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the average borrowings outstanding of SBA debentures was $158.4$176.6 million and $157.4$170.3 million, respectively. For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 2.93%2.44% and 3.16%2.97%, respectively. During the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the average dollar amount of our 6.25% fixed-rate 2025 Notes outstanding was $60.0$0.0 million and $60.0 million, respectively. During the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the weighted average dollar amount of our 7.25% fixed-rate 2025 Notes outstanding was $43.1 million and $0.0$43.1 million, respectively. During the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the weighted average dollar amount of our 7.75% fixed-rate 2025 Notes outstanding was $5.0 million and $0.0 million, respectively. During the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the average dollar amount of our 6.25% fixed-rate 2027 Notes outstanding was $15.0 million and $0.0 million, respectively. During the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, the average dollar amount of our 4.375% fixed-rate 2026 Notes outstanding was $50.0$175.0 million and $0.0 million, respectively.

As discussed above, the increase in interest and debt financing expenses for the nine months ended November 30, 2021 compared to the nine months ended November 30, 2020 is primarily attributable to an increase in the average dollar amount of outstanding debt. During the nine months ended November 30, 2021 and November 30, 2020, the average borrowings outstanding under the Encina Credit Facility and the Madison Credit Facility was $12.5 million and $0.0 million, respectively. For the nine months ended November 30, 2021 and November 30, 2020, the average borrowings outstanding of SBA debentures was $172.0 million and $165.9 million, respectively. For the nine months ended November 30, 2021 and November 30, 2020, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 2.66% and 4.57%, respectively. During the nine months ended November 30, 2021 and November 30, 2020, the average dollar amount of our 6.25% fixed-rate 2025 Notes outstanding was $39.3 million and $60.0 million, respectively. During the nine months ended November 30, 2021 and November 30, 2020, the weighted average dollar amount of our 7.25% fixed-rate 2025 Notes outstanding was $43.1 million and $43.1 million, respectively. During the nine months ended November 30, 2021 and November 30, 2020, the weighted average dollar amount of our 7.75% fixed-rate 2025 Notes outstanding was $5.0 million and $5.0 million, respectively. During the nine months ended November 30, 2021 and November 30, 2020, the average dollar amount of our 6.25% fixed-rate 2027 Notes outstanding was $15.0 million and $0.0 million, respectively. During the nine months ended November 30, 2021 and November 30, 2020, the average dollar amount of our 4.375% fixed-rate 2026 Notes outstanding was $115.3 million and $0.0 million, respectively.

 

For the three months ended May 31,November 30, 2021 and May 31,November 30, 2020, there were income tax expense (benefits) of $0.04 million and $0.03 million, respectively. For the nine months ended November 30, 2021 and $(0.01)November 30, 2020, there were income tax expense (benefits) of $0.02 million and $0.03 million, respectively. This relates to net deferred federal and state income tax expense (benefit) with respect to operating gains and losses and income derived from equity investments held in the taxable blockers.blockers, as well as current federal and state income taxes on those operating gains and losses when realized.

 

Net realized gains (losses) on sales of investments

For the three months ended May 31,November 30, 2021, the Company had $14.9$66.4 million of sales, repayments, exits or restructurings resulting in $1.9$9.9 million of net realized gains. For the nine months ended November 30, 2021, the Company had $216.2 million of sales, repayments, exits or restructurings resulting in $13.3 million of net realized gains.

 


ThreeNine Months ended May 31,November 30, 2021

 

Issuer Asset Type Gross Proceeds  Cost  Net
Realized
Gain (Loss)		  Asset Type Gross
Proceeds		 Cost Net
Realized
Gain (Loss)		 
GreyHeller LLC Equity Interests $8,178,457  $850,000  $7,328,457 
Lexipol, LLC Equity Interests $10,792,127  $10,792,268   (141)
My Alarm Center, LLC Equity Interests  -   4,867,102   (4,867,102)
Passageways, Inc. Equity Interests  7,439,802   1,000,000   6,439,802 
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-1-R-3 Note Structured Finance Securities  8,360,133   8,500,000   (139,867)
Texas Teachers of Tomorrow, LLC Equity Interests  3,338,611   750,000   2,588,611 
V Rental Holdings LLC Equity Interests $2,276,055  $365,914  $1,910,141  Equity Interests  2,344,817   365,914   1,978,903 

The $7.3 million of net realized gains was from the sales of the equity position in the Company’s GreyHeller LLC investment.

The $6.4 million of net realized gains was from the sales of the equity position in the Company’s Passageways Inc. investment.

The $4.9 million of net realized loss was from the Company’s My Alarm Center, LLC investment that was deemed worthless during this period.

The $2.6 million of net realized gains was from the sales of the equity position in the Company’s Texas Teachers of Tomorrow, LLC investment.

 

The $1.9 million of net realized gains was from the sales of the equity position in the Company’s V Rental Holdings LLC investment.

 

The $0.1 million of net realized loss was from the repayment of the structured finance securities in the Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-1-R-3 Note.

For the three months ended May 31,November 30, 2020, the Company had $9.4$18.3 million of sales, repayments, exits or restructurings resulting in $0.01$0.0 million of net realized gains. For the nine months ended November 30, 2020, the Company had $50.9 million of sales, repayments, exits or restructurings resulting in $0.02 million of net realized gains.

Net change in unrealized appreciation (depreciation) on investments

 

For the three months ended May 31,November 30, 2021, our investments had a net change in unrealized depreciation of $6.0 million versus a net change in unrealized appreciation of $6.0 million for the three months ended November 30, 2020. For the nine months ended November 30, 2021, our investments had a net change in unrealized appreciation of $16.8$14.1 million versus a net change in unrealized depreciation of $32.0$9.4 million for the threenine months ended May 31,November 30, 2020. The most significant cumulative net change in unrealized appreciation (depreciation) for the threenine months ended May 31, 2021November 30, 2020 were the following (dollars in thousands):

 


ThreeNine Months ended May 31,November 30, 2021

 

Issuer Asset Type Cost  Fair Value  Total
Unrealized
Appreciation
(Depreciation)		  YTD Change
in Unrealized
Appreciation
(Depreciation)		 
Saratoga Investment Corp. CLO 2013-1, Ltd. Structured Finance Securities $33,412  $35,546  $2,134  $4,531 
Passageways, Inc. First Lien Term Loan & Equity Interests  10,954   17,598   6,645   4,333 
Netreo Holdings, LLC First Lien Term Loan & Equity Interests  23,792   33,604   9,812   4,224 
Schoox, Inc. Equity Interests  1,050   3,108   2,058   2,058 
GreyHeller LLC First Lien Term Loan & Equity Interests  14,032   19,131   5,098   1,996 
Top Gun Pressure Washing, LLC First Lien Term Loan & Equity Interests  10,902   10,731   (171)  896 
Destiny Solutions Inc. First Lien Term Loan & Equity Interests  45,709   47,395   1,686   659 
V Rental Holdings LLC Equity Interests  -   -   -   (1,843)


The $4.5 million of unrealized appreciation in our investment in Saratoga Investment Corp. CLO 2013-1, Ltd. was driven by improved market performance, combined with outperformance achieved from the assets in the CLO.

Issuer Asset Type Cost  Fair Value  Total
Unrealized
Appreciation
(Depreciation)		  YTD Change in
Unrealized 
Appreciation
(Depreciation)		 
My Alarm Center, LLC Equity Interests $-  $-  $-  $4,686 
C2 Educational Systems First Lien Term Loan & Equity Interests  18,979   17,896   (1,083)  1,416 
Netreo Holdings, LLC First Lien Term Loan & Equity Interests  24,056   33,934   9,878   4,290 
PDDS Buyer, LLC First Lien Term Loan & Equity Interests  22,865   26,400   3,535   2,711 
Schoox, Inc. Equity Interests  476   3,447   2,971   2,971 
Top Gun Pressure Washing, LLC First Lien Term Loan & Equity Interests  10,908   10,995   87   1,154 
Destiny Solutions Inc. First Lien Term Loan & Equity Interests  3,969   6,622   2,653   1,626 
Village Realty Holdings LLC First Lien Term Loan & Equity Interests  -   -   -   (2,183)
Passageways, Inc. First Lien Term Loan & Equity Interests  -   -   -   (2,311)

 

The $4.3$4.7 million net change in unrealized appreciation in our investment in Passageways, Inc.My Alarm Center, LLC was driven by growth, including a potential upcoming acquisition.the reversal of previously recognized unrealized depreciation reclassified to realized losses.

 

The $4.2$1.4 million net change in unrealized appreciation in our investment in C2 Education Systems was driven by improved financial performance.

The $4.3 million net change in unrealized appreciation in our investment in Netreo Holdings, LLC was driven by growth and improved financial performance.

 

The $2.1$2.7 million net change in unrealized appreciation in our investment in PDDS Buyer, LLC was driven by overall strong company performance.

The $3.0 million net change in unrealized appreciation in our investment in Schoox, Inc. was driven by new customers and increased customer demand.

The $2.0 million net change in unrealized appreciation in our investment in GreyHeller LLC was driven by improved financialoverall strong company performance.

 

The $0.9$1.2 million net change in unrealized appreciation in our investment in Top Gun Pressure Washing, LLC was driven by growth, improved financial performance.performance, and a reduced leverage profile.

 

The $0.7$1.6 million net change in unrealized appreciation in our investment in Destiny Solutions Inc. was driven by improvedgrowth and overall strong financial performance and the potential of an upcoming acquisition.performance.

 

The $1.8$2.2 million net change in unrealized depreciation in our investment in Village Realty Holdings, LLC was driven by the sale of that investment, resulting in a reversal of previously recognized unrealized appreciation reclassified to realized gains.

 

The $2.3 million net change in unrealized depreciation in our investment in Passageways, Inc. was driven by the sale of that investment, resulting in a reversal of previously recognized unrealized appreciation reclassified to realized gains.


The most significant cumulative net change in unrealized appreciation for the threenine months ended May 31,November 30, 2020 were the following (dollars in thousands):

 

ThreeNine Months ended May 31,November 30, 2020

 

Issuer Asset Type Cost  Fair Value  Total
Unrealized
Appreciation		  YTD Change
in Unrealized
Appreciation		 
Knowland Group, LLC Second Lien Term Loans $15,379  $11,445  $(3,934) $(3,827)
C2 Educational Systems First Lien Term Loan  15,987   12,872   (3,115)  (3,134)
Saratoga Investment Corp. CLO 2013-1, Ltd. Structured Finance Securities  22,160   18,085   (4,075)  (3,112)
Elyria Foundry Company, L.L.C. Second Lien Term Loan & Equity Interests  10,921   1,417   (9,504)  (1,759)
Destiny Solutions Inc. First Lien Term Loan & Equity Interests  38,178   37,077   (1,101)  (1,640)
ArbiterSports, LLC First Lien Term Loan  26,777   25,126   (1,651)  (1,625)
Village Realty Holdings LLC First Lien Term Loan  11,025   9,763   (1,262)  (1,390)
Texas Teachers of Tomorrow, LLC First Lien Term Loan & Equity Interests  19,533   18,520   (1,013)  (1,144)
Identity Automation Systems First Lien Term Loan & Equity Interests  17,742   17,546   (196)  (959)
Kev Software Inc. First Lien Term Loan  21,047   20,210   (837)  (952)
EMS LINQ, Inc. First Lien Term Loan  14,771   13,875   (896)  (939)
inMotionNow, Inc. First Lien Term Loan  14,084   13,273   (811)  (935)
CLEO Communications Holding, LLC First Lien Term Loan  33,882   33,728   (154)  (924)
Issuer Asset Type Cost  Fair Value  Total
Unrealized
Appreciation		  YTD Change in
Unrealized 
Appreciation		 
Knowland Group, LLC Second Lien Term Loan $15,768  $12,118  $(3,650) $(3,544)
C2 Educational Systems First Lien Term Loan  15,993   12,987   (3,006)  (3,024)
ArbiterSports, LLC First Lien Term Loan  26,793   24,521   (2,272)  (2,246)
Roscoe Medical, Inc. Second Lien Term Loan & Equity Interests  4,708   4,338   (370)  2,201 
My Alarm Center, LLC Equity Interests  4,867   306   (4,561)  (1,691)
Elyria Foundry Company, L.L.C. Second Lien Term Loan & Equity Interests  11,019   1,998   (9,021)  (1,276)

 


The net changes in unrealized depreciation noted above primarily relate to the impact of COVID-19, resulting in changes to market spreads, EBITDA multiples and/or revised portfolio company performance, following the events since March 2020.

 

Changes in net assets resulting from operations

 

For the three months ended May 31,November 30, 2021, we recorded a net increase in net assets resulting from operations of $21.0$8.3 million. Based on 11,170,04511,450,181 weighted average common shares outstanding as of May 31,November 30, 2021, our per share net increase in net assets resulting from operations was $1.88$0.73 for the three months ended May 31,November 30, 2021. For the three months ended May 31,November 30, 2020, we recorded a net decreaseincrease in net assets resulting from operations of $22.7$6.4 million. Based on 11,217,54511,169,817 weighted average common shares outstanding as of May 31,November 30, 2020, our per share net increase in net assets resulting from operations was $0.57 for the three months ended November 30, 2020. 

For the nine months ended November 30, 2021, we recorded a net increase in net assets resulting from operations of $37.3 million. Based on 11,312,991 weighted average common shares outstanding as of November 30, 2021, our per share net increase in net assets resulting from operations was $3.30 for the nine months ended November 30, 2021. For the nine months ended November 30, 2020, we recorded a net increase in net assets resulting from operations of $5.5 million. Based on 11,198,287 weighted average common shares outstanding as of November 30, 2020, our per share net decrease in net assets resulting from operations was $2.02$0.49 for the three months ended May 31,November 30, 2020.

 

For the three and nine months ended November 30, 2021, we recorded a net realized loss on extinguishments of debts of $0.8 million and $2.3 million, respectively. These realized losses related to the acceleration of unamortized deferred financing costs following the repayment of the 2025 6.25% Notes, the redemption of various SBA Debentures and the repayment and termination of the Madison Credit Facility.


FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

 

We intend to continue to generate cash primarily from cash flows from operations, including interest earned from our investments in debt in middle market companies, interest earned from the temporary investment of cash in U.S. government securities and other high-quality debt investments that mature in one year or less, future borrowings and future offerings of securities.

 

Although we expect to fund the growth of our investment portfolio through the net proceeds from future equity offerings, including our dividend reinvestment plan (“DRIP”), and issuances of senior securities or future borrowings, to the extent permitted by the 1940 Act, we cannot assure you that our plans to raise capital will be successful. In this regard, because our common stock has historically traded at a price below our current net asset value per share and we are limited in our ability to sell our common stock at a price below net asset value per share, we have been and may continue to be limited in our ability to raise equity capital.

 

In addition, we intend to distribute to our stockholders substantially all of our operating taxable income in order to satisfy the distribution requirement applicable to RICs under the Code. In satisfying this distribution requirement, in accordance with certain applicable provisions of the Code and theU.S. Treasury regulations and a revenue procedurepublished guidance issued by the Internal Revenue Service (“IRS”), a publicly offered RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements as counting toward its RIC distribution requirements if each stockholder may elect to receive his, her, or herits entire distribution in either cash or stock of the RIC subject to a limitationRIC. This published guidance indicates that the rule will apply where the aggregate amount of cash to be distributed to all stockholders must beis not at least 20% of the aggregate declared distribution. We may rely on the revenue procedure in future periods to satisfy our RIC distribution requirement.

 

Also, as a BDC, we generally are required to meet a coverage ratio of total assets, less liabilities and indebtedness not represented by senior securities, to total senior securities, which include all of our borrowings and any outstanding preferred stock, of at least 200.0%, reduced to 150.0% effective April 16, 2019 following the approval received from the non-interested board of directors on April 16, 2018. This requirement limits the amount that we may borrow. Our asset coverage ratio, as defined in the 1940 Act, was 251.0%236.7% as of May 31,November 30, 2021 and 347.1% as of February 28, 2021. To fund growth in our investment portfolio in the future, we anticipate needing to raise additional capital from various sources, including the equity markets and other debt-related markets, which may or may not be available on favorable terms, if at all.

 

Consequently, we may not have the funds or the ability to fund new investments, to make additional investments in our portfolio companies, to fund our unfunded commitments to portfolio companies, to pay dividends or to repay borrowings. Also, the illiquidity of our portfolio investments may make it difficult for us to sell these investments when desired and, if we are required to sell these investments, we may realize significantly less than their recorded value.

Madison Revolving Credit Facility

The senior secured revolving credit facility we entered into with Madison Capital Funding LLC (the “Madison Credit Facility”) on June 30, 2010, which was most recently amended on September 3, 2021 and then fully repaid and terminated on October 4, 2021.

As of February 28, 2021, we had no outstanding borrowings under the Madison Credit Facility. Our borrowing base under the Madison Credit Facility at February 28, 2021 was $38.9 million.


Encina Credit Facility

 

Below is a summary of the terms of the senior secured revolving credit facility we entered into with Madison Capital FundingEncina Lender Finance, LLC (the “Credit Facility”) on June 30, 2010, which was most recently amended on September 14, 2020. (See Recent Developments).October 4, 2021.

 

Availability.Commitment. The Company entered into a senior secured revolving credit facility in the initial facility amount of $50.0 million (the “Facility Amount”). The Company has the ability to request an increase in the Facility Amount during the first two years following the closing date to up to $75.0 million. The commitment termination date is October 4, 2024.

Availability. The Company can draw up to the lesser of (i) $40.0 million (the “Facility Amount”)the Facility Amount and (ii) the Borrowing Base. The Borrowing Base is an amount equal to (i) the difference of (A) the product of the applicable advance rate (whichwhich varies from 50.0% to 75.0% depending on the type of loan asset)asset (Defaulted Loans being excluded in that they carry an advance rate of 0%) and the value, determined in accordance with the Encina Credit Facility (the “Adjusted Borrowing Value”), of certain “eligible” loan assets pledged as security for the loan (the “Borrowing Base”Base Value”), and (B) the Excess Concentration Amount, as calculated in each caseaccordance with the Encina Credit Facility, plus (ii) any amounts held in the Prefunding Account and, without duplication, Excess Cash held in the Collection Account, less (iii) the product of (a) the amount of any undrawn funding commitments the Company has under any loan asset and which are not covered by amounts in(b) the Unfunded Exposure Account referred to below (the “Unfunded Exposure Amount”)Haircut Percentage, and outstanding borrowings.less (iv) $100,000. Each loan asset held by the Company as of the date on which the Encina Credit Facility was closed was valued as of that date and each loan asset that the Company acquires after such date will be valued at the lowest of its fair value, its face value (excluding accrued interest) and the purchase price paid for such loan asset. Adjustments to the value of a loan asset will be made to reflect, among other things and under certain circumstances, changes in its fair value, a default by the obligor on the loan asset, insolvency of the obligor, acceleration of the loan asset, and certain modifications to the terms of the loan asset.

 


The Encina Credit Facility contains limitations on the type of loan assets that are “eligible” to be included in the Borrowing Base and as to the concentration level of certain categories of loan assets in the Borrowing Base such as restrictions on geographic and industry concentrations, asset size and quality, payment frequency, status and terms, average life, and collateral interests. In addition, if an asset is to remain an “eligible” loan asset, the Company may not make changes to the payment, amortization, collateral and certain other terms of the loan assets without the consent of the administrative agent that will either result in subordination of the loan asset or be materially adverse to the lenders.

 

Collateral. The Encina Credit Facility requires certain minimum drawn amounts. For the period beginning on the closing date and ending April 4, 2022, the minimum funding amount is $12.5 million. For the period beginning on April 5, 2022 through maturity, the minimum funding amount is the greater of $25.0 million and 50% of the Facility Amount in effect from time to time.

Collateral. The Encina Credit Facility is secured by substantially all of the assets of Saratoga Investment Funding II LLC (“SIF II”) and pledged to the lender under the credit facility. SIF II is a wholly owned special purpose entity formed by the Company (other than assets held by our SBIC subsidiary) and includesfor the subordinated notes (“CLO Notes”) issued by Saratoga CLO andpurpose of entering into the Company’s rights under the CLO Management Agreement (as defined below).Encina Credit Facility.

 

Interest Rate and Fees.Under the Encina Credit Facility, funds are borrowed from or through certain lenders at the greater of the prevailing LIBOR rate and 1.00%0.75%, plus an applicable margin of 4.75%4.00%. AtThe Encina Credit Facility includes benchmark replacement provisions which permit the Company’s option, funds may be borrowed based on an alternative base rate, which in no event will be less than 2.00%,Administrative Agent and the applicable margin over such alternative baseBorrower to select a replacement rate is 3.75%.upon the unavailability of LIBOR. In addition, the Company pays the lenders a commitment fee of 0.75% per year (or 0.50% if the ratio of advances outstanding to aggregate commitments is greater than or equal to 50%) on the unused amount of the Encina Credit Facility for the duration of the Revolving Period (defined below).term of the credit facility. Accrued interest and commitment fees are payable monthly.monthly in arrears. The Company was also obligated to pay certain other fees to the lenders in connection with the closing of the Encina Credit Facility.

 

Revolving Period and Maturity Date. The Company may make and repay borrowings under the Credit Facility for a period of three years following the closing of the Credit Facility (the “Revolving Period”). The Revolving Period may be terminated at an earlier time by the Company or, upon the occurrence of an event of default, by action of the lenders or automatically. All borrowings and other amounts payable under the Credit Facility are due and payable in full five years after the end of the Revolving Period.

Collateral Tests.Tests. It is a condition precedent to any borrowing under the Encina Credit Facility that the principal amount outstanding under the Encina Credit Facility, after giving effect to the proposed borrowings, not exceed the lesser of the Borrowing Base or the Facility Amount (the “Borrowing Base Test”). In addition to satisfying the Borrowing Base Test, the following tests must also be satisfied (together with Borrowing Base Test, the “Collateral Tests”):

 

●oInterest Coverage Ratio. The ratio (expressed as a percentage) of interest collections with respect to pledged loan assets, less certain fees and expenses relating to the Encina Credit Facility, to accrued interest and commitment fees and any breakage costs payable to the lenders under the Encina Credit Facility for the last 6 payment periods must equal at least 175.0%.

 


●oOvercollateralization Ratio.The ratio (expressed as a percentage) of the aggregate Adjusted Borrowing Value of “eligible” pledged loan assets plus the fair value of certain ineligible pledged loan assets and the CLO Notes (in each case, subject to certain adjustments) to outstanding borrowings under the Encina Credit Facility plus the Unfunded Exposure Amount must equal at least 200.0%.

●Weighted Average FMV Test. The aggregate adjusted or weighted value of “eligible” pledged loan assets as a percentage of the aggregate outstanding principal balance of “eligible” pledged loan assets must be equal to or greater than 72.0% and 80.0% during the one-year periods prior to the first and second anniversary of the closing date, respectively, and 85.0% at all times thereafter.

 

The Encina Credit Facility also requiresmay require payment of outstanding borrowings or replacement of pledged loan assets upon the Company’s breach of its representation and warranty that pledged loan assets included in the Borrowing Base are “eligible” loan assets. Such payments or replacements must equalineligible collateral loans will be excluded from the lowercalculation of the amount by which the Borrowing Base is overstatedand may lead to a Borrowing Base Deficiency, which may be cured by effecting one or more (or any combination thereof) of the following actions: (A) deposit into or credit to the collection account cash and eligible investments, (B) repay outstanding borrowings (together with certain costs and expenses), (C) sell or substitute loan assets in accordance with the Encina Credit Facility, or (D) pledge additional loan assets as a result of such breach or any deficiency under the Collateral Tests at the time of repayment or replacement.collateral. Compliance with the Collateral Tests is also a condition to the discretionary sale of pledged loan assets by the Company.

 

Priority of Payments.Payments During the Revolving Period, the. The priority of payments provisions of the Encina Credit Facility require, after payment of specified fees and expenses, and any necessary funding of the Unfunded Exposure Account, that collections of principalinterest from the loan assets and, to the extent that these are insufficient, collections of interestprincipal from the loan assets, be applied on each payment date to payment of outstanding borrowings if the Borrowing Base Test, the Overcollateralization Ratio and the Interest Coverage Ratio would not otherwise be met. Similarly, following termination of the Revolving Period, collections of interest are required to be applied, after payment of certain fees and expenses, to cure any deficiencies in the Borrowing Base Test, the Interest Coverage Ratio and the Overcollateralization Ratio as of the relevant payment date.

 

Reserve Account. The Credit Facility requires the Company to set aside an amount equal to the sum of accrued interest, commitment fees and administrative agent fees due and payable on the next succeeding three payment dates (or corresponding to three payment periods). If for any monthly period during which fees and other payments accrue, the aggregate Adjusted Borrowing Value of “eligible” pledged loan assets which do not pay cash interest at least quarterly exceeds 15.0% of the aggregate Adjusted Borrowing Value of “eligible” pledged loan assets, the Company is required to set aside such interest and fees due and payable on the next succeeding six payment dates. Amounts in the reserve account can be applied solely to the payment of administrative agent fees, commitment fees, accrued and unpaid interest and any breakage costs payable to the lenders.


Unfunded Exposure Account. With respect to revolver or delayed draw loan assets, the Company is required to set aside in a designated account (the “Unfunded Exposure Account”) 100.0% of its outstanding and undrawn funding commitments with respect to such loan assets. The Unfunded Exposure Account is funded at the time the Company acquires a revolver or delayed draw loan asset and requests a related borrowing under the Credit Facility. The Unfunded Exposure Account is funded through a combination of proceeds of the requested borrowing and other Company funds, and if for any reason such amounts are insufficient, through application of the priority of payment provisions described above.

Operating Expenses. Expenses. The priority of payments provision of the Encina Credit Facility provides for the payment of certain operating expenses of the Company out of collections on principalinterest and interest during the Revolving Period and out of collections on interest following the termination of the Revolving Periodprincipal in accordance with the priority established in such provision. The operating expenses payable pursuant to the priority of payment provisions is limited to $350,000 for each monthly payment date or $2.5 million for the immediately preceding period of twelve consecutive monthly payment dates. This ceiling can be increased by the lesser of 5.0% or the percentage increase in the fair market value of all the Company’s assets only on the first monthly payment date to occur after each one-year anniversary following the closing of the Credit Facility. Upon the occurrence of a Manager Event (described below), the consent of the administrative agent is required in order to pay operating expenses through the priority of payments provision.$200,000 per annum.

  

Covenants; Representations and Warranties; Events of Default. Default. The Encina Credit Facility contains certain negative covenants, customary representations and warranties, and affirmative covenants, negative covenants and events of default. The Encina Credit Facility does not contain grace periods for breach by the Company of any negative covenants or of certain of the affirmative covenants, including, without limitation, those related to preservation of the existence negative pledge, change of name or jurisdiction and separate legal entity statusseparateness of the Company covenants and certain other customary covenants.Company. Other events of default under the Encina Credit Facility include, among other things, the following:

 

●oFailure of the Company to maintain an Interest Coverage Ratio of less than 150.0%;

●an Overcollateralization Ratio of less than 175.0%;

 

●oFailure of the Company to maintain an Overcollateralization Ratio of less than 200.0%;

othe filing of certain ERISA or tax liens;liens on assets of the Company or the Equityholder;

 

●ofailure by Specified Holders to collectively, directly or indirectly, own and control at least 51% of the occurrenceoutstanding equity interests of certain “Manager Events” such as:Saratoga Investment Advisor, or (y) possess the right to elect (through contract, ownership of voting securities or otherwise) at all times a majority of the board of directors (or similar governing body) of Saratoga Investment Advisor and to direct the management policies and decisions of Saratoga Investment Advisor, or (ii) the dissolution, termination or liquidation in whole or in part, transfer or other disposition, in each case, of all or substantially all of the assets of, Saratoga Investment Advisor;

 

●failure by Saratoga Investment Advisors and its affiliates to maintain collectively, directly or indirectly, a cash equity investment in the Company in an amount equal to at least $5.0 million at any time prior to the third anniversary of the closing date;

●failure of the Management Agreement between Saratoga Investment Advisors and the Company to be in full force and effect;

●oindictment or conviction of Saratoga Investment Advisors or any “key person” for a felony offense, or any fraud, embezzlement or misappropriation of funds by Saratoga Investment Advisors or any “key person” and, in the case of “key persons,” without a reputable, experienced individual reasonably satisfactory to Madison Capital FundingEncina Lender Finance appointed to replace such key person within 30 days;

 

●oresignation, termination, disability or death of a “key person” or failure of any “key person” to provide active participation in Saratoga Investment Advisors’ daily activities, all without a reputable, experienced individual reasonably satisfactory to Madison Capital FundingEncina Lender Finance appointed within 30 days; or

●occurrence of any event constituting “cause” under the Collateral Management Agreement between the Company and Saratoga CLO (the “CLO Management Agreement”), delivery of a notice under Section 12(c) of the CLO Management Agreement with respect to the removal of the Company as collateral manager or the Company ceases to act as collateral manager under the CLO Management Agreement.days.

 

Conditions to Acquisitions and Pledges of Loan Assets. The Credit Facility imposes certain additional conditions to the acquisition and pledge of additional loan assets. Among other things, the Company may not acquire additional loan assets without the prior written consent of the administrative agent until such time that the administrative agent indicates in writing its satisfaction with Saratoga Investment Advisors’ policies, personnel and processes relating to the loan assets.

Fees and Expenses. Expenses. The Company paid certain fees and reimbursed Madison Capital FundingEncina Lender Finance, LLC for the aggregate amount of all documented, out-of-pocket costs and expenses, including the reasonable fees and expenses of lawyers, incurred by Madison Capital FundingEncina Lender Finance, LLC in connection with the Encina Credit Facility and the carrying out of any and all acts contemplated thereunder up to and as of the date of closing of the stock purchase transaction with Saratoga Investment Advisors and certain of its affiliates.closing. These amounts totaled $2.0$1.4 million.

 


On February 24, 2012, we entered into a first amendment to the Credit Facility to, among other things:

●expand the borrowing capacity under the Credit Facility from $40.0 million to $45.0 million;

●extend the period during which we may make and repay borrowings under the Credit Facility from July 30, 2013 to February 24, 2015 (the “Revolving Period”). The Revolving Period may, upon the occurrence of an event of default, by action of the lenders or automatically, be terminated. All borrowings and other amounts payable under the Credit Facility are due and payable five years after the end of the Revolving Period; and

●remove the condition that we may not acquire additional loan assets without the prior written consent of the administrative agent.

On September 17, 2014, we entered into a second amendment to the Credit Facility, among other things:

●extend the commitment termination date from February 24, 2015 to September 17, 2017;

●extend the maturity date of the Revolving Facility from February 24, 2020 to September 17, 2022 (unless terminated sooner upon certain events);

●reduce the applicable margin rate on base rate borrowings from 4.50% to 3.75%, and on LIBOR borrowings from 5.50% to 4.75%; and

●reduce the floor on base rate borrowings from 3.00% to 2.25%; and on LIBOR borrowings from 2.00% to 1.25%.

On May 18, 2017, we entered into a third amendment to the Credit Facility to, among other things:

●extend the commitment termination date from September 17, 2017 to September 17, 2020;

●extend the final maturity date of the Credit Facility from September 17, 2022 to September 17, 2025;

●reduce the floor on base rate borrowings from 2.25% to 2.00%;

●reduce the floor on LIBOR borrowings from 1.25% to 1.00%; and

●reduce the commitment fee rate from 0.75% to 0.50% for any period during which the ratio of advances outstanding to aggregate commitments, expressed as a percentage, is greater than or equal to 50%.

On April 24, 2020, we entered into a fourth amendment to the Credit Facility to, among other things:

●permit certain amendments related to the Paycheck Protection Program (“Permitted PPP Amendment”) to Loan Asset Documents;

●exclude certain debt and interest amounts allowed by the Permitted PPP Amendments from certain calculations related to Net Leverage Ratio, Interest Coverage Ratio and EBITDA; and

●exclude such Permitted PPP Amendments from constituting a Material Modification.

On September 14, 2020, we entered into a fifth amendment to the Credit Facility to, among other things:

●extend the commitment termination date of the Credit Facility from September 17, 2020 to September 17, 2021, with no change to the maturity date of September 17, 2025.

●provide for the transition away from the LIBOR Rate in the market, and

●expand the definition of “Eligible Loan Asset” to allow investments with certain recurring revenue features to qualify as Collateral and be included in the borrowing base.


As of May 31,November 30, 2021, we had $39.0$12.5 million outstanding borrowings under the Encina Credit Facility and $168.0$207.0 million of SBA-guaranteedSBA- guaranteed debentures outstanding (which are discussed below). As of February 28, 2021, we had no outstanding borrowings under the Credit Facility and $158.0 million of SBA-guaranteed debentures outstanding. Our borrowing base under the Credit Facility at May 31, 2021 and February 28, 2021 was $51.1 million and $38.9 million, respectively.

93

 

Our asset coverage ratio, as defined in the 1940 Act, was 251.0% as of May 31, 2021 and 347.1% as of February 28, 2021.

SBA-guaranteed debentures

 

In addition, we, through two wholly-ownedwholly owned subsidiaries, sought and obtained licenses from the SBA to operate an SBIC. In this regard, on March 28, 2012, our wholly-ownedwholly owned subsidiary, Saratoga Investment Corp. SBIC LP, received a license from the SBA to operate as an SBIC under Section 301(c) of the Small Business Investment Act of 1958 and on August 14, 2019, our wholly-ownedwholly owned subsidiary, Saratoga Investment Corp. SBIC II LP, also received a license. SBICs are designated to stimulate the flow of private equity capital to eligible small businesses. Under SBA regulations, SBICs may make loans to eligible small businesses and invest in the equity securities of small businesses.

 

The SBIC licenses allows our SBIC subsidiaries to obtain leverage by issuing SBA-guaranteed debentures. SBA-guaranteed debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten-year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with 10-year maturities.

 

SBA regulations previously limited the amount that our SBIC subsidiary may borrow to a maximum of $150.0 million when it has at least $75.0 million in regulatory capital, receives a capital commitment from the SBA and has been through an examination by the SBA subsequent to licensing. This maximum has been increased by SBA regulators for new licenses to $175.0 million of SBA debentures when it has at least $87.5 million in regulatory capital. The new license will provide up to $175.0 million in additional long-term capital in the form of SBA-guaranteed debentures. The SBIC LP and SBIC II LP are regulated by the SBA. As a result of the 2016 omnibus spending bill signed into law in December 2015, the maximum amount of SBA-guaranteed debentures that affiliated SBIC funds can have outstanding was increased from $225.0 million to $350.0 million.million, subject to SBA approval. Our wholly-ownedwholly owned SBIC subsidiaries are able to borrow funds from the SBA against regulatory capital (which generally approximates equity capital) that is paidcapital in the respective SBIC) and is subject to customary regulatory requirements, including, but not limited to, ana periodic examination by the SBA. With this license approval, Saratoga can grow its SBA relationship from $150.0 million to $325.0 million of committed capital.

 

We received exemptive relief from the SEC to permit us to exclude the debtsenior securities issued by of our SBIC subsidiaries guaranteed by the SBA from the definition of senior securities in the asset coverage testrequirement applicable to the Company under the 1940 Act. This allows us increased flexibility under the asset coverage testrequirement by permitting us to borrow up to $325.0 million more than we would otherwise be able to absent the receipt of this exemptive relief. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, our non-interested board of directors approved of our becoming subject to a minimum asset coverage ratio of 150.0% from 200% under Sections 18(a)(1) and 18(a)(2) of the Investment Company Act, as amended.1940 Act. The 150.0%150% asset coverage ratio became effective on April 16, 2019.

 

As of May 31,November 30, 2021, our SBIC LP subsidiary had $75.0 million in regulatory capital and $124.0$108.0 million in SBA-guaranteed debentures outstanding and our SBIC II LP subsidiary had $84.0$87.5 million in regulatory capital and $44.0$99.0 million in SBA-guaranteed debentures outstanding.

Unsecured notes

In May 2013, the Company issued $48.3 million in aggregate principal amount of 7.50% fixed-rate notes due 2020 (the “2020 Notes”).Notes. The 2020 Notes were redeemed in full on January 13, 2017 and are no longer listed on the NYSE.

 

On May 29, 2015, we entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which we may offer for sale, from time to time, up to $20.0 million in aggregate principal amount of the 2020 Notes through an ATM offering. Prior to the 2020 Notes being redeemed in full, the Company had sold 539,725 bonds with a principal of $13.5 million at an average price of $25.31 for aggregate net proceeds of $13.4 million (net of transaction costs).

 

On December 21, 2016, we issued $74.5 million in aggregate principal amount of our 2023 Notes for net proceeds of $71.7 million after deducting underwriting commissions of approximately $2.3 million and offering costs of approximately $0.5 million. The net proceeds from the offering were used to repay all of the outstanding indebtedness under the 2020 Notes on January 13, 2017, which amounted to $61.8 million, and for general corporate purposes in accordance with our investment objective and strategies. On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.5 million, respectively, in aggregate principal amount of the $74.5 million in aggregate principal amount of issued and outstanding 2023 Notes and are no longer listed on the NYSE.

 


On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of ourthe 6.25% fixed-rate notes due 2025 (the “6.25% 2025 Notes”)Notes for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.3 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $5.0 million aggregate principal amount of 6.25% 2025 Notes within 30 days. Interest on the 6.25% 2025 Notes iswas paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning November 30, 2018. The 6.25% 2025 Notes mature on August 31, 2025 and commencing August 28, 2021, may be redeemed in whole or in part at any time or from time to time at our option.year. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes. The 6.25% 2025 Notes are listed on the NYSE under the trading symbol “SAF” with a par value of $25.00 per share.

 


On February 5, 2019, the Company completed a re-opening and up-sizing of its existing 6.25% 2025 Notes by issuingissued an additional $20.0 million in aggregate principal amount of the 6.25% 2025 Notes for net proceeds of $19.2 million after deducting underwriting commissions of approximately $0.6 million and discount of $0.2 million. The additional 6.25% 2025 Notes were treated as a single series with the existing 6.25% 2025 Notes under the indenture and had the same terms as the existing 6.25% 2025 Notes. Offering costs incurred were approximately $0.2 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $2.5 million aggregate principal amount of 6.25% 2025 Notes within 30 days. Interest rate, interest payment dates and maturity remain unchanged from the existing 6.25% 2025 Notes issued in August 2018. The net proceeds from this offering were used for general corporate purposes in accordance with our investment objective and strategies. The financing costs and discount of $1.0 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes.

 

At MayOn August 31, 2021, the totalCompany redeemed $60.0 million in aggregate principal amount of the issued and outstanding 6.25% 2025 Notes outstanding was $60.0 million.

In connection withat par, plus the issuanceaccrued and unpaid interest thereon, through, but excluding, the redemption date of theAugust 31, 2021. The 6.25% 2025 Notes we agreed towere listed on the NYSE under the trading symbol of “SAF” with a par value of $25.00 per share and effective as of August 31, 2021, have been delisted following covenants for the period of time during which the notes are outstanding:redemption.

●we will not violate (whether or not we are subject to) Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions, but giving effect to any exemptive relief granted to us by the SEC. These provisions generally prohibit us from making additional borrowings, including through the issuance of additional debt or the sale of additional debt securities, unless our asset coverage, as defined in the 1940 Act, equals at least 200% after such borrowings, or, if we obtain the required approvals from our independent directors and/or stockholders, 150% (after deducting the amount of such dividend, distribution or purchase price, as the case may be).

●we will not declare any dividend (except a dividend payable in our stock), or declare any other distribution, upon a class of our capital stock, or purchase any such capital stock, unless, in every such case, at the time of the declaration of any such dividend or distribution, or at the time of any such purchase, we have an asset coverage (as defined in the 1940 Act) of at least 150.0%, as such obligation may be amended or superseded, after deducting the amount of such dividend, distribution or purchase price, as the case may be, and in each case giving effect to (i) any exemptive relief granted to us by the SEC, and (ii) any SEC no-action relief granted by the SEC to another BDC (or to us if we determine to seek such similar no-action or other relief) permitting the BDC to declare any cash dividend or distribution notwithstanding the prohibition contained in Section 18(a)(1)(B) as modified by such provisions of Section 61(a) of the 1940 Act as may be applicable to us from time to time, as such obligation may be amended or superseded, in order to maintain such BDC’s status as a regulated investment company under Subchapter M of the Code.

●if, at any time, we are not subject to the reporting requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934, or the Exchange Act, to file any periodic reports with the SEC, we agree to furnish to holders of the 6.25% 2025 Notes and the Trustee, for the period of time during which the 6.25% 2025 Notes are outstanding, our audited annual consolidated financial statements, within 90 days of our fiscal year end, and unaudited interim consolidated financial statements, within 45 days of our fiscal quarter end (other than our fourth fiscal quarter). All such financial statements will be prepared, in all material respects, in accordance with applicable United States generally accepted accounting principles.

 

On June 24, 2020, the Company issued $37.5 million in aggregate principal amount of ourthe 7.25% fixed-rate notes due 2025 (the “7.25% 2025 Notes”)Notes for net proceeds of $36.3 million after deducting underwriting commissions of approximately $1.2 million. Offering costs incurred were approximately $0.3 million. On July 6, 2020, the underwriters exercised their option in full to purchase an additional $5.625 million in aggregate principal amount of its 7.25% unsecured notes due 2025. Net proceeds to the Company were $5.4 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 7.25% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.25% per year, beginning August 31, 2020.year. The 7.25% 2025 Notes mature on June 30, 2025 and commencing June 24, 2022, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 7.25% 2025 Notes have been capitalized and are being amortized over the term of the 7.25% 2025 Notes. The Company has received an investment grade private rating of “BBB” from Egan-Jones Ratings Company, an independent, unaffiliated rating agency. The 7.25% 2025 Notes are listed on the NYSE under the trading symbol “SAK” with a par value of $25.00 per share.

At November 30, 2020,2021, the total 7.25% 2025 Notes outstanding was $43.1 million.

 


On July 9, 2020, the Company issued $5.0 million aggregate principal amount of ourthe 7.75% fixed-rate2025 Notes due in 2025 (the “7.75% 2025 Notes”) for net proceeds of $4.8 million after deducting underwriting commissions of approximately $0.2 million. Offering costs incurred were approximately $0.1 million. Interest on the 7.75% Notes 2025 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.75% per year, beginning August 31, 2020. Thethe 7.75% Notes 2025 mature on July 9, 2025 and may be redeemed in whole or in part at any time or from time to time at our option.option, subject to a fee depending on the date of repayment. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 7.75% Notes 2025 have been capitalized and are being amortized over the term of the Notes. The 7.75% 2025 Notes are unlisted and have a par value of $25.00 per share.

 

At May 31,November 30, 2021, the total 7.75% 2025 Notes outstanding was $5.0 million.

 

On December 29, 2020, the Company issued $5.0 million aggregate principal amount of ourthe 6.25% fixed-rate Notes due in 2027 (the “6.25% Notes 2027”).2027. Offering costs incurred were approximately $0.1 million. Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021.year. The 6.25% Notes 2027 mature on December 29, 2027 and may be redeemed in whole or in part at any time or from time to time at our option, on or after December 29, 2024. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.1 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes.

 

On January 28, 2021, the Company issued $10.0m$10.0 million aggregate principal amount of our 6.25% fixed rate Notes due in 2027 (the “Secondthe Second 6.25% Notes 2027”)2027 for net proceeds of $9.7 million after deducting underwriting commissions of approximately $0.3 million. Offering costs incurred were approximately $0.0 million. Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021.year. The 6.25% Notes 2027 mature on January 28, 2027 and commencing January 28, 2023, may be redeemed in whole or in part at any time or from time to time at our option.option on or after December 29, 2024. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes.

 

At May 31,November 30, 2021, the total 6.25% 20252027 Notes outstanding was $15.0 million.

 

On March 10, 2021, the Company issued $50.0m$50.0 million aggregate principal amount of ourthe 4.375% fixed-rate Notes due in 2026 (the “4.375% Notes 2026”) for net proceeds of $49.0 million after deducting underwriting commissions of approximately $1.0 million. Offering costs incurred were approximately $0.2 million.  Interest on the 4.375% Notes 2026 is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.375% per year, beginning August 28, 2021.year. The 4.375% Notes 2026 mature on February 28, 2026 and may be redeemed in whole or in part at any time on or from time to time at the Company’s optionafter November 28, 2025 at par plus a “make-whole” premium, if applicable.or thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.2 million related to the 4.375% Notes 2026 have been capitalized and are being amortized over the term of the Notes.

 


On July 15, 2021, the Company issued an additional $125.0 million aggregate principal amount of the Company’s 4.375% Notes 2026 (the “Additional 4.375% 2026 Notes”) for net proceeds for approximately $123.5 million, based on the public offering price of 101.00% of the aggregate principal amount of the Additional 4.375% 2026 Notes, after deducting the underwriting discount of $2.5 million and the estimated offering expenses of approximately $0.2 million payable by the Company. The net proceeds from the offering were used to redeem all of the outstanding 6.25% 2025 Notes (as described above), and for general corporate purposes in accordance with our investment objective and strategies. The Additional 4.375% 2026 Notes were treated as a single series with the existing 4.375% 2026 Notes under the indenture and had the same terms as the existing 4.375% 2026 Notes.

At May 31,November 30, 2021, the total 4.375% Notes outstanding was $50.0 million$175.0 million.

 

At May 31,November 30, 2021 and February 28, 2021, the fair value of investments, cash and cash equivalents and cash and cash equivalents, reserve accounts were as follows:

  November 30, 2021  February 28, 2021 
  Fair Value  Percentage of
Total		  Fair Value  Percentage of
Total		 
  ($ in thousands) 
Cash and cash equivalents $120,882   15.4% $18,828   3.2%
Cash and cash equivalents, reserve accounts  23,186   2.9   11,087   1.9 
First lien term loans  504,460   64.1   440,456   75.4 
Second lien term loans  49,808   6.3   24,930   4.3 
Unsecured term loans  2,759   0.4   2,141   0.4 
Structured finance securities  42,676   5.4   49,779   8.5 
Equity interests  43,644   5.5   37,007   6.3 
Total $787,415   100.0% $584,228   100.0%

 

  May 31, 2021  February 28, 2021 
  Fair Value  Percentage of
Total		  Fair Value  Percentage of
Total		 
  ($ in thousands) 
Cash and cash equivalents $318   0.0% $18,828   3.2%
Cash and cash equivalents, reserve accounts  19,660   2.8   11,087   1.9 
First lien term loans  516,154   74.0   440,456   75.4 
Second lien term loans  25,422   3.6   24,930   4.3 
Unsecured term loans  2,169   0.3   2,141   0.4 
Structured finance securities  53,421   7.7   49,779   8.5 
Equity interests  80,607   11.6   37,007   6.3 
Total $697,751   100.0% $584,228   100.0%


On July 13, 2018, the Company issued 1,150,000 shares of its common stock priced at $25.00 per share (par value $0.001 per share) at an aggregate total of $28.75 million. The net proceeds, after deducting underwriting commissions of $1.15 million and offering costs of approximately $0.2 million, amounted to approximately $27.4 million. The Company also granted the underwriters a 30-day option to purchase up to an additional 172,500 shares of its common stock, which was not exercised.

 

On March 16, 2017, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc., through which we may offer for sale, from time to time, up to $30.0 million of our common stock through an ATM offering. Subsequent to this, BB&T Capital Markets and B. Riley FBR, Inc. were also added to the agreement.equity ATM program. On July 11, 2019, the amount of the common stock to be offered through this offering was increased to $70.0 million, and on October 8, 2019, the amount of the common stock to be offered was increased to $130.0 million. AsThis agreement was terminated as of May 31,July 29, 2021, and as of that date, the Company had sold 3,922,018 shares for gross proceeds of $97.1 million at an average price of $24.77 for aggregate net proceeds of $95.9 million (net of transaction costs).

On July 30, 2021, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc. and Compass Point Research and Trading, LLC (the “Agents”), through which we may offer for sale, from time to time, up to $150.0 million of our common stock through the Agents, or to them, as principal for their account. As of November 30, 2021, the Company sold 4,447,535 shares for gross proceeds of $112.5 million at an average price of $25.29 for aggregate net proceeds of $111.0 million (net of transaction costs). During the three months ended May 31,November 30, 2021, there was no activity related to the ATM offering.Company sold 520,076 shares for gross proceeds of $15.2 million at an average price of $29.16 for aggregate net proceeds of $15.0 million (net of transaction cost). During the nine months ended November 30, 2021, the Company sold 525,517 shares for gross proceeds of $15.3 million at an average price of $29.15 for aggregate net proceeds of $15.2 million (net of transaction cost).

 


On September 24, 2014, the Company announced the approval of an open market share repurchase plan that allowed it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published consolidated financial statements (the “Share Repurchase Plan”). On October 7, 2015, our board of directors extended the Share Repurchase Plan for another year and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 400,000 shares of its common stock. On October 5, 2016, our board of directors extended the Share Repurchase Plan for another year to October 15, 2017 and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 600,000 shares of its common stock. On October 10, 2017, January 8, 2019 and January 7, 2020, our board of directors extended the Share Repurchase Plan for another year to October 15, 2018, January 15, 2020 and January 15, 2021, respectively, each time leaving the number of shares unchanged at 600,000 shares of its common stock. On May 4, 2020, our board of directors increased the Share Repurchase Plan to 1.3 million shares of common stock. On January 5, 2021, our board of directors extended the Shares Repurchase Plan for another year to January 15, 2022, leaving the number of shares unchanged at 1.3 million shares of common stock. As of May 31,November 30, 2021, the Company purchased 448,812458,435 shares of common stock, at the average price of $18.49$18.64 for approximately $8.3$8.6 million pursuant to the Share Repurchase Plan. During the three months ended May 31,November 30, 2021, there was no activity. During the nine months ended November 30, 2021, the Company purchased 40,00049,623 shares of common stock, at the average price of $25.09$25.23 for approximately $1.0$1.3 million pursuant to the Share Repurchase Plan.

On November 30, 2021, the Company declared a dividend of $0.53 per share payable on January 19, 2022, to common stockholders of record on January 4, 2021. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP.

On August 26, 2021, the Company declared a dividend of $0.52 per share payable on September 28, 2021, to common stockholders of record on September 14, 2021. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $4.9 million in cash and 38,016 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $26.76 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on September 15, 16, 17, 20, 21, 22, 23, 24, 27 and 28, 2021.

 

On May 27, 2021, the Company declared a dividend of $0.44 per share payable on June 29, 2021, to common stockholders of record on June 15, 2021. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company'sCompany’s DRIP. Based on shareholder elections, the dividend consisted of approximately $4.1 million in cash and 33,09933,100 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $25.03 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 16, 17, 18, 21, 22, 23, 24, 25, 28 and 29, 2021.

 

On March 22, 2021, the Company declared a dividend of $0.43 per share payable on April 22, 2021, to common stockholders of record on April 8, 2021. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $3.9 million in cash and 38,580 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.69 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on April 9,12, 13, 14, 15, 16, 19, 20, 21 and 22, 2021.

 

On January 5, 2021, our board of directors declared a dividend of $0.42 per share, which was paid on February 10, 2021, to common stockholders of record as of January 26, 2021. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.8 million in cash and 41,388 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.75 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on January 28, 29 and February 1, 2, 3, 4, 5, 8, 9 and 10, 2021.

 

On October 7, 2020, our board of directors declared a dividend of $0.41 per share, which was paid on November 10, 2020, to common stockholders of record as of October 26, 2020. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.8 million in cash and 45,706 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.63 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on October 28, 29, 30 and November 2, 3, 4, 5, 6, 9 and 10, 2020.

 


On July 7, 2020, the Company declared a dividend of $0.40 per share payable on August 12, 2020, to common stockholders of record on July 27, 2020. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $3.7 million in cash and 47,098 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.45 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on July 30, 31 and August 3, 4, 5, 6, 7, 10, 11 and 12, 2020.

 


On January 8, 2020, the Company declared a dividend of $0.56 per share, which was paid on February 6, 2020, to common stockholders of record on January 24, 2020. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $5.4 million in cash and 35,682 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $25.44 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on January 24, 27, 28, 29, 30, 31 and February 3, 4, 5 and 6, 2020.

 

On August 27, 2019, the Company declared a dividend of $0.56 per share, which was paid on September 26, 2019, to common stockholders of record on September 13, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $4.5 million in cash and 34,575 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.34 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on September 13, 16, 17, 18, 19, 20, 23, 24, 25 and 26, 2019.

 

On May 28, 2019, our board of directors declared a dividend of $0.55 per share, which was paid on June 27, 2019, to common stockholders of record as of June 13, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.6 million in cash and 31,545 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $22.65 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 14, 17, 18, 19, 20, 21, 24, 25, 26 and 27, 2019.

 

On February 26, 2019, our board of directors declared a dividend of $0.54 per share, which was paid on March 28, 2019, to common stockholders of record as of March 14, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.5 million in cash and 31,240 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.36 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on March 15, 18, 19, 20, 21, 22, 25, 26, 27 and 28, 2019.

 

On November 27, 2018, our board of directors declared a dividend of $0.53 per share, which was paid on January 2, 2019, to common stockholders of record on December 17, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $3.4 million in cash and 30,796 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $18.88 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on December 18, 19, 20, 21, 24, 26, 27, 28, 31, 2018 and January 2, 2019.

 

On August 28, 2018, our board of directors declared a dividend of $0.52 per share, which was paid on September 27, 2018, to common stockholders of record as of September 17, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.3 million in cash and 25,862 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $22.35 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on September 14, 17, 18, 19, 20, 21, 24, 25, 26 and 27, 2018.

 

On May 30, 2018, our board of directors declared a dividend of $0.51 per share, which was paid on June 27, 2018, to common stockholders of record as of June 15, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $2.7 million in cash and 21,562 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.72 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on June 14, 15, 18, 19, 20, 21, 22, 25, 26 and 27, 2018.

 


On February 26, 2018, our board of directors declared a dividend of $0.50 per share, which was paid on March 26, 2018, to common stockholders of record as of March 14, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $2.6 million in cash and 25,354 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $19.91 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on March 13, 14, 15, 16, 19, 20, 21, 22, 23 and 26, 2018.

 


On November 29, 2017, our board of directors declared a dividend of $0.49 per share, which was paid on December 27, 2017, to common stockholders of record on December 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $2.5 million in cash and 25,435 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.14 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on December 13, 14, 15, 18, 19, 20, 21, 22, 26 and 27, 2017.

 

On August 28, 2017, our board of directors declared a dividend of $0.48 per share, which was paid on September 26, 2017, to common stockholders of record on September 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $2.2 million in cash and 33,551 newly issued shares of common stock, or 0.6% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.19 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on September 13, 14, 15, 18, 19, 20, 21, 22, 25 and 26, 2017.

 

On May 30, 2017, our board of directors declared a dividend of $0.47 per share, which was paid on June 27, 2017, to common stockholders of record on June 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $2.3 million in cash and 26,222 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.04 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 14, 15, 16, 19, 20, 21, 22, 23, 26 and 27, 2017.

 

On February 28, 2017, our board of directors declared a dividend of $0.46 per share, which was paid on March 28, 2017, to common stockholders of record as of March 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $2.0 million in cash and 29,096 newly issued shares of common stock, or 0.5% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.38 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on March 15, 16, 17, 20, 21, 22, 23, 24, 27 and 28, 2017.

 

On January 12, 2017, our board of directors declared a dividend of $0.45 per share, which was paid on February 9, 2017, to common stockholders of record as of January 31, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.6 million in cash and 50,453 newly issued shares of common stock, or 0.9% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.25 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on January 27, 30, 31 and February 1, 2, 3, 6, 7, 8 and 9, 2017.

 

On October 5, 2016, our board of directors declared a dividend of $0.44 per share, which was paid on November 9, 2016, to common stockholders of record as of October 31, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 58,548 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.12 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on October 27, 28, 31 and November 1, 2, 3, 4, 7, 8 and 9, 2016.

 

On August 8, 2016, our board of directors declared a special dividend of $0.20 per share, which was paid on September 5, 2016, to common stockholders of record as of August 24, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $0.7 million in cash and 24,786 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.06 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on August 22, 23, 24, 25, 26, 29, 30, 31 and September 1 and 2, 2016.

 


On July 7, 2016, our board of directors declared a dividend of $0.43 per share, which was paid on August 9, 2016, to common stockholders of record as of July 29, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 58,167 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.32 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on July 27, 28, 29 and August 1, 2, 3, 4, 5, 8 and 9, 2016.

 


On March 31, 2016, our board of directors declared a dividend of $0.41 per share, which was paid on April 27, 2016, to common stockholders of record as of April 15, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 56,728 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.43 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on April 14, 15, 18, 19, 20, 21, 22, 25, 26 and 27, 2016.

 

On January 12, 2016, our board of directors declared a dividend of $0.40 per share, which was paid on February 29, 2016, to common stockholders of record as of February 1, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.4 million in cash and 66,765 newly issued shares of common stock, or 1.2% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $13.11 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on February 16, 17, 18, 19, 22, 23, 24, 25, 26 and 29, 2016.

 

On October 7, 2015, our board of directors declared a dividend of $0.36 per share, which was paid on November 30, 2015, to common stockholders of record as of November 2, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.1 million in cash and 61,029 newly issued shares of common stock, or 1.1% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $14.53 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on November 16, 17, 18, 19, 20, 23, 24, 25, 27 and 30, 2015.

 

On July 8, 2015, our board of directors declared a dividend of $0.33 per share, which was paid on August 31, 2015, to common stockholders of record as of August 3, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.1 million in cash and 47,861 newly issued shares of common stock, or 0.9% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.28 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on August 18, 19, 20, 21, 24, 25, 26, 27, 28 and 31, 2015.

 

On May 14, 2015, our board of directors declared a special dividend of $1.00 per share, which was paid on June 5, 2015, to common stockholders of record on as of May 26, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.4 million in cash and 126,230 newly issued shares of common stock, or 2.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.47 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on May 22, 26, 27, 28, 29 and June 1, 2, 3, 4 and 5, 2015.

  

On April 9, 2015, our board of directors declared a dividend of $0.27 per share, which was paid on May 29, 2015, to common stockholders of record as of May 4, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $0.9 million in cash and 33,766 newly issued shares of common stock, or 0.6% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.78 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on May 15, 18, 19, 20, 21, 22, 26, 27, 28 and 29, 2015.

 

On September 24, 2014, our board of directors declared a dividend of $0.22 per share, which was paid on February 27, 2015, to common stockholders of record on February 2, 2015. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $0.8 million in cash and 26,858 newly issued shares of common stock, or 0.5% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $14.97 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on February 13, 17, 18, 19, 20, 23, 24, 25, 26 and 27, 2015.

 


Also, on September 24, 2014, our board of directors declared a dividend of $0.18 per share, which was paid on November 28, 2014, to common stockholders of record on November 3, 2014. Shareholders had the option to receive payment of the dividend in cash or receive shares of common stock pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $0.6 million in cash and 22,283 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $14.37 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on November 14, 17, 18, 19, 20, 21, 24, 25, 26 and 28, 2014.

 


On October 30, 2013, our board of directors declared a dividend of $2.65 per share, which was paid on December 27, 2013, to common stockholders of record as of November 13, 2013. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to approximately $2.5 million or $0.53 per share. This dividend was declared in reliance on certain private letter rulings issued by the IRS concluding that a RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder may elect to receive his or her entire distribution in either cash or stock of the RIC subject to a limitation on the aggregate amount of cash to be distributed to all stockholders, which limitation must be at least 20.0% of the aggregate declared distribution. Based on shareholder elections, the dividend consisted of approximately $2.5 million in cash and 649,500 shares of common stock, or 13.7% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 20.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.439 per share, which 95% of equaled the volume weighted average trading price per share of the common stock on December 11, 13, and 16, 2013.

 

On November 9, 2012, our board of directors declared a dividend of $4.25 per share, which was paid on December 31, 2012, to common stockholders of record as of November 20, 2012. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to approximately $3.3 million or $0.85 per share. Based on shareholder elections, the dividend consisted of $3.3 million in cash and 853,455 shares of common stock, or 22.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 20.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.444 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on December 14, 17 and 19, 2012.

 

On November 15, 2011, our board of directors declared a dividend of $3.00 per share, which was paid on December 30, 2011, to common stockholders of record as of November 25, 2011. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to $2.0 million or $0.60 per share. Based on shareholder elections, the dividend consisted of $2.0 million in cash and 599,584 shares of common stock, or 18.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 20.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $13.117067 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on December 20, 21 and 22, 2011.

 

On November 12, 2010, our board of directors declared a dividend of $4.40 per share to shareholders payable in cash or shares of our common stock, in accordance with the provisions of the IRS Revenue Procedure 2010-12, which allows a publicly-traded regulated investment company to satisfy its distribution requirements with a distribution paid partly in common stock provided that at least 10.0% of the distribution is payable in cash. The dividend was paid on December 29, 2010 to common shareholders of record on November 19, 2010. Based on shareholder elections, the dividend consisted of $1.2 million in cash and 596,235 shares of common stock, or 22.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 10.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.8049 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on December 20, 21 and 22, 2010.

 

On November 13, 2009, our board of directors declared a dividend of $18.25 per share, which was paid on December 31, 2009, to common stockholders of record as of November 25, 2009. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to $2.1 million or $0.25 per share. Based on shareholder elections, the dividend consisted of $2.1 million in cash and 864,872.5 shares of common stock, or 104.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 13.7% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $1.5099 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on December 24 and 28, 2009.

 

We cannot provide any assurance that these measures will provide sufficient sources of liquidity to support our operations and growth.

 

Our asset coverage ratio, as defined in the 1940 Act, was 236.7% as of November 30, 2021 and 347.1% as of February 28, 2021.


Contractual obligations

The following table shows our payment obligations for repayment of debt and other contractual obligations at May 31,November 30, 2021:

    Payment Due by Period    Payment Due by Period 
Long-Term Debt Obligations Total  Less Than 1 Year  1 - 3 Years  3 - 5 Years  More Than 5 Years  Total Less Than
1 Year		 1 - 3
Years		 3 - 5
Years		 More Than
5 Years		 
 ($ in thousands)  ($ in thousands) 
Revolving credit facility $39,000  $-  $-  $39,000  $- 
Encina credit facility  $12,500  $                -  $12,500  $      -  $      - 
SBA debentures  168,000   -   24,000   53,660   90,340   207,000   -   37,000   24,660   145,340 
6.25% 2025 Notes  60,000   -   -   60,000   - 
7.25% 2025 Notes  43,125   -   -   43,125   -   43,125   -   -   43,125   - 
7.75% 2025 Notes  5,000   -   -   5,000   -   5,000   -   -   5,000   - 
4.375% 2026 Notes  50,000   -   -   50,000   -   175,000   -   -   175,000   - 
6.25% 2027 Notes  15,000   -   -   -   15,000   15,000   -   -   -   15,000 
Total Long-Term Debt Obligations $380,125  $-  $24,000  $250,785  $105,340  $457,625  $-  $49,500  $247,785  $160,340 

 

Off-balance sheet arrangements

 

As of May 31,November 30, 2021 and February 28, 2021, the Company’s off-balance sheet arrangements consisted of $55.0$97.1 million and $58.8 million, respectively, of unfunded commitments outstanding to provide debt financing to its portfolio companies or to fund limited partnership interests. Such commitments are generally up to the Company’s discretion to approve, or the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’s consolidated statements of assets and liabilities and are not reflected in the Company’s consolidated statements of assets and liabilities.

 

A summary of the unfunded commitments outstanding as of May 31,November 30, 2021 and February 28, 2021 is shown in the table below (dollars in thousands):

 May 31, 2021  February 28, 2021  November 30,
2021		 February 28,
2021		 
At Company’s discretion             
Artemis Wax Corp. $15,000  $-  $9,700  $- 
Axero Holdings, LLC  3,000   - 
Book4Time, Inc.  2,000   2,000   2,000   2,000 
CLEO Communications Holding, LLC  630   630   -   630 
Granite Comfort, LP  5,000   - 
GreyHeller LLC  11,000   15,000   -   15,000 
LFR Chicken LLC  10,000   - 
Netreo Holdings, LLC  1,000   10,000   1,000   10,000 
Passageways, Inc.  5,000   5,000   -   5,000 
Pepper Palace, Inc.  3,000   - 
Procurement Partners, LLC  3,000   - 
Saratoga Senior Loan Fund I JV LLC  43,750   - 
Sceptre Hospitality Resources, LLC  1,000   - 
Top Gun Pressure Washing, LLC  175   3,175   175   3,175 
Village Realty Holdings LLC  -   10,000   -   10,000 
Total  39,805   45,805   76,625   45,805 
                
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required        At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required  
Artemis Wax Corp.  3,404   - 
Axero Holdings, LLC  2,000   - 
GoReact  800   2,000   -   2,000 
Granite Comfort, LP  2,000   - 
HemaTerra Holding Company, LLC  2,000   2,000   2,000   2,000 
LFR Chicken LLC  3,000   - 
New England Dental Partners  4,500   6,000   4,500   6,000 
Passageways, Inc.  2,000   2,000   -   2,000 
Pepper Palace, Inc.  4,500   - 
Procurement Partners, LLC  1,000   1,000   1,000   1,000 
Zollege PBC  1,500   -   1,500   - 
  15,204   13,000   20,500   13,000 
Total $55,009  $58,805  $97,125  $58,805 

  


Recent Developments

 

Subsequent to May 31, 2020,November 30, 2021, the global outbreak of the coronavirus pandemic has adversely affected some of the Company’s investments and continues to have adverse consequences on the U.S. and global economies. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual portfolio companies, remains uncertain. At the time of this filing, there is no indication of a reportable subsequent event impacting the Company’s financial statements for the three monthsquarter ended May 31,November 30, 2021. The Company cannot predict the extent to which its financial condition and results of operations will be adversely affected at this time. The potential impact to our results will depend to a large extent on future developments and new information that may emerge regarding the duration and severity of COVID-19. The Company continues to observe and respond to the evolving COVID-19 environment and its potential impact on areas across its business.

On January 4, 2022, our board of directors extended the Shares Repurchase Plan for another year to January 15, 2023, leaving the number of shares unchanged at 1.3 million shares of common stock.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Our business activities contain elements of market risk. We consider our principal market risk to be the fluctuation in interest rates. Managing this risk is essential to our business. Accordingly, we have systems and procedures designed to identify and analyze our risks, to establish appropriate policies and thresholds and to continually monitor this risk and thresholds by means of administrative and information technology systems and other policies and processes. In addition, U.S. and global capital markets and credit markets have experienced a higher level of stress due to the global COVID-19 pandemic, which has resulted in an increase in the level of volatility across such markets and a general decline in value of the securities held by us.

 

Interest rate risk is defined as the sensitivity of our current and future earnings to interest rate volatility, including relative changes in different interest rates, variability of spread relationships, the difference in re-pricing intervals between our assets and liabilities and the effect that interest rates may have on our cash flows. Changes in the general level of interest rates can affect our net interest income, which is the difference between the interest income earned on interest earning assets and our interest expense incurred in connection with our interest-bearing debt and liabilities. Changes in interest rates can also affect, among other things, our ability to acquire leveraged loans, high yield bonds and other debt investments and the value of our investment portfolio.

 

Our investment income is affected by fluctuations in various interest rates, including LIBOR and the prime rate. A large portion of our portfolio is, and we expect will continue to be, comprised of floating rate investments that utilize LIBOR. In connection with the COVID-19 pandemic, the U.S. Federal Reserve and other central banks have reduced certain interest rates and LIBOR has decreased.decreased, but the U.S Federal Reserve announced three interest rate hikes by the end of 2022. A prolonged reduction in interest rates will reduce our gross investment income and could result in a decrease in our net investment income if such decreases in LIBOR are not offset by a corresponding increase in the spread over LIBOR that we earn on any portfolio investments, a decrease in in our operating expenses, including with respect to our income incentive fee, or a decrease in the interest rate of our floating interest rate liabilities tied to LIBOR. Our interest expense is affected by fluctuations in LIBOR only on our revolving credit facility. At May 31,November 30, 2021, we had $380.1$457.6 million of borrowings outstanding, of which $39.0 million borrowings outstanding on the revolving credit facility as of May 31, 2021.outstanding.

 

We have analyzed the potential impact of changes in interest rates on interest income from investments. Assuming that our investments as of May 31,November 30, 2021 were to remain constant for a full fiscal year and no actions were taken to alter the existing interest rate terms, a hypothetical change of a 1.0% increase in interest rates would cause a corresponding increase of approximately $0.5 million to our interest income. Conversely, a hypothetical change of a 1.0% decrease in interest rates would cause a corresponding decrease of approximately $0.02$0.01 million to our interest income.

 

Changes in interest rates would have no impact to our current interest and debt financing expense, as all our borrowings except for our credit facility are fixed rate, and our credit facility is currently undrawn.

 

Although management believes that this measure is indicative of our sensitivity to interest rate changes, it does not adjust for potential changes in credit quality, size and composition of the assets on the statements of assets and liabilities and other business developments that could magnify or diminish our sensitivity to interest rate changes, nor does it account for divergences in LIBOR and the commercial paper rate, which have historically moved in tandem but, in times of unusual credit dislocations, have experienced periods of divergence. Accordingly, no assurances can be given that actual results would not materially differ from the potential outcome simulated by this estimate.

 


For further information, the following table shows the approximate annualized increase or decrease in the components of net investment income due to hypothetical base rate changes in interest rates, assuming no changes in our investments and borrowings as of May 31,November 30, 2021.

 

  Increase  (Increase)  Increase  Increase 
Basis (Decrease)  Decrease  (Decrease) in Net  (Decrease) in Net 
Point in Interest  in Interest  Investment  Investment 
Change Income  Expense  Income  Income per Share 
  ($ in thousands)    
-100 $(23) $-  $(23) $(0.00)
-50  (23)  -   (23)  (0.00)
-25  (23)  -   (23)  (0.00)
25  45   -   45   0.00 
50  101   -   101   0.01 
100  452   (51)  401   0.04 
200  3,467   (441)  3,026   0.27 
300  8,562   (831)  7,731   0.69 
400  14,029   (1,221)  12,808   1.15 
   Increase  (Increase)  Increase  Increase 
Basis  (Decrease)  Decrease  (Decrease) in Net  (Decrease) in Net 
Point  in Interest  in Interest  Investment  Investment 
Change  Income  Expense  Income  Income per Share 
   ($ in thousands)    
 -100  $(16) $-  $(16) $(0.00)
 -50   (16)  -   (16)  (0.00)
 -25   (16)  -   (16)  (0.00)
 25   23   -   23   0.00 
 50   62   -   62   0.01 
 100   544   (43)  501   0.04 
 200   4,278   (168)  4,110   0.36 
 300   9,558   (293)  9,265   0.82 
 400   15,089   (418)  14,671   1.30 

 

ITEM 4. CONTROLS AND PROCEDURES

 

(a)As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and our chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934). Based on that evaluation, our chief executive officer and our chief financial officer have concluded that our current disclosure controls and procedures are effective in facilitating timely decisions regarding required disclosure of any material information relating to us that is required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

 

(b)There have been no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) of Exchange Act) that occurred during the quarter ended November 30, 20202021 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.


PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings

 

Neither we nor our wholly-ownedwholly owned subsidiaries, Saratoga Investment Funding LLC, andSaratoga Investment Funding II, LLC, Saratoga Investment Corp. SBIC LP and Saratoga Investment Corp. SBIC II LP, are currently subject to any material legal proceedings.

 

Item 1A. Risk Factors

 

In addition to information set forth in this report, you should carefully consider the “Risk Factors” discussed in our most recent Annual Report on Form 10-K filed with the SEC, which could materially affect our business, financial condition and/or operating results. Other than as set forth below, there have been no material changes during the threenine months ended May 31,November 30, 2021 to the risk factors discussed in “Item 1A. Risk Factors” of our Annual Report on Form 10-K. Additional risks or uncertainties not currently known to us or that we currently deem to be immaterial also may materially affect our business, financial condition and/or operating results.

The interest rates of our loans to our portfolio companies, any LIBOR-linked securities, and other financial obligations that extend beyond 2021 might be subject to change based on recent regulatory changes, including the decommissioning of LIBOR.

LIBOR is the basic rate of interest used in lending transactions between banks on the London interbank market and is widely used as a reference for setting the interest rate on loans globally. Prior to December 31, 2021, we typically used LIBOR as a reference rate in floating-rate loans extended to portfolio companies such that the interest due to us pursuant to a term loan extended to a portfolio company is calculated using LIBOR, including with respect to loans that mature after LIBOR is no longer available. Uncertainty relating to the LIBOR calculation process, the valuation of LIBOR alternatives, and other economic consequences from the phasing out of LIBOR may adversely affect our results of operations, financial condition and liquidity.

On March 5, 2021, the United Kingdom's Financial Conduct Authority (the "FCA"), which regulates LIBOR, announced that it will not compel panel banks to contribute to the overnight 1, 3, 6 and 12 months USD LIBOR tenors after June 30, 2023 and all other tenors after December 31, 2021. On November 16, 2021, the FCA issued a statement confirming that starting January 1, 2022, entities supervised by the FCA will be prohibited from using LIBORs, including USD LIBOR, that will be discontinued as of December 31, 2021 as well as, except in very limited circumstances, those tenors of USD LIBOR that will be discontinued or declared non-representative after June 30, 2023. While LIBOR will cease to exist or be declared non-representative, there continues to be uncertainty regarding the nature of potential changes to specific USD LIBOR tenors, the development and acceptance of alternative reference rates and other reforms.

Central banks and regulators in a number of major jurisdictions (for example, United States, United Kingdom, European Union, Switzerland and Japan) have convened working groups to find, and implement the transition to, suitable replacements for LIBORs and other interbank offered rates ("IBORs"). To identify a successor rate for USD LIBOR, the Alternative Reference Rates Committee (“ARRC”), U.S.-based group convened by the U.S. Federal Reserve Board and the Federal Reserve Bank of New York, was formed. The ARRC has identified the Secured Overnight Financing Rate (“SOFR”) as its preferred alternative rate for LIBOR. SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions. On July 29, 2021, the ARRC formally recommended SOFR as its preferred alternative replacement rate for LIBOR. On July 29, 2021, the ARRC also recommended a forward-looking term rate based on SOFR published by CME Group. Although SOFR appears to be the preferred replacement rate for U.S. dollar LIBOR, at this time, it is not possible to predict the effect of any such changes, any establishment of alternative reference rates or other reforms to LIBOR that may be enacted in the United States, United Kingdom or elsewhere. Alternative reference rates that may replace LIBOR, including SOFR for USD transactions, may not yield the same or similar economic results as LIBOR over the lives of such transactions. There can be no guarantee that SOFR will become the dominant alternative to USD LIBOR or that SOFR will be widely used and other alternatives may or may not be developed and adopted with additional consequences.

On April 6, 2021, legislation was signed into law in the state of New York that provides that contracts, securities and instruments governed by New York law that reference USD LIBOR and that either lack benchmark fallback provisions or include ineffective benchmark fallback provisions in connection with USD LIBOR no longer being published or becoming non-representative, will, by operation of law, refer to a replacement benchmark rate based on SOFR. Despite the adoption of the New York legislation, successful legal challenges against the legislation may render it partially or wholly unconstitutional or unenforceable, e.g., based on other federal or state law grounds.

The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR could have an adverse impact on the market value of and/or transferability of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us, valuation measurements used by us that include LIBOR as an input, our operational processes or our overall financial condition or results of operations. In addition, while the majority of our LIBOR-linked loans contemplate that LIBOR may cease to exist and allow for amendment to a new base rate without the approval of 100% of the lenders, if LIBOR ceases to exist, we could be required, in certain situations, to still need to renegotiate the credit agreements extending beyond 2021 with our portfolio companies that utilize LIBOR as a factor in determining the interest rate, in order to replace LIBOR with the new standard that is established, which may have an adverse effect on our overall financial condition or results of operations. Following the replacement of LIBOR, some or all of these credit agreements may bear interest at a lower interest rate, which could have an adverse impact on the value and liquidity of our investment in these portfolio companies and, as a result, on our results of operations. Such adverse impacts and the uncertainty of the transition could result in disputes and litigation with counterparties and borrowers regarding the implementation of alternative reference rates.


The COVID-19 pandemic could negatively affect our portfolio companies and our results of our operations.

Periods of market volatility have occurred and could continue to occur in response to pandemics or other events outside of our control. These types of events have adversely affected and could continue to adversely affect operating results for us and for our portfolio companies. For example, the COVID-19 pandemic and new variants of COVID-19, such as the Delta and Omnicron variants, has led to, and for an unknown period of time will continue to lead to, disruptions in local, regional, national and global markets and economies affected thereby, including the United States. The COVID-19 pandemic and restrictive measures taken to contain or mitigate its spread have caused, and are continuing to cause, business shutdowns, or the re-introduction of business shutdowns, cancellations of events and restrictions on travel, significant reductions in demand for certain goods and services, reductions in business activity and financial transactions, supply chain disruptions, labor difficulties and shortages, commodity inflation and elements of economic and financial market instability both globally and in the United States. Such effects will likely continue for the duration of the COVID-19 pandemic, which is uncertain, and for some period thereafter. While several countries, as well as certain states, counties and cities in the United States, have begun to relax the early public health restrictions with a view to partially or fully reopening their economies or lifted such restrictions entirely, many cities, both globally and in the United States, have since experienced a surge in the reported number of cases, hospitalizations and deaths related to the COVID-19 pandemic. This recent increase in cases has led to the re-introduction of restrictions and business shutdowns in certain states, counties and cities in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere.

COVID-19 and the resulting economic dislocations have had adverse consequences for the business operations and financial performance of some of our portfolio companies, which may, in turn impact the valuation of our investments and have adversely affected, and threaten to continue to adversely affect, our operations. We cannot predict the full impact of COVID-19, including the duration of the restrictions described above. As a result, we are unable to predict the duration of these business and supply-chain disruptions, the extent to which COVID-19 will negatively affect our portfolio companies’ operating results or the impact that such disruptions may have on our results of operations and financial condition. With respect to loans to portfolio companies, the Company will be impacted if, among other things, (i) amendments and waivers are granted (or are required to be granted) to borrowers permitting deferral of loan payments or allowing for PIK interest payments, (ii) borrowers default on their loans, are unable to refinance their loans at maturity, or go out of business, or (iii) the value of loans held by the Company decreases as a result of such events and the uncertainty they cause. Portfolio companies may also be more likely to seek to draw on unfunded commitments we have made, and the risk of being unable to fund such commitments is heightened during such periods. Depending on the duration and extent of the disruption to the business operations of our portfolio companies, we expect some portfolio companies, particularly those in vulnerable industries, to experience financial distress and possibly to default on their financial obligations to us and/or their other capital providers. In addition, if such portfolio companies are subjected to prolonged and severe financial distress, we expect some of them to substantially curtail their operations, defer capital expenditures and lay off workers. These developments would be likely to permanently impair their businesses and result in a reduction in the value of our investments in them. Any potential impact to our results of operations will depend to a large extent on future developments and new information that could emerge regarding the duration and severity of the COVID-19 pandemic and any new variants of COVID-19 and the actions taken by authorities and other entities to contain the spread or treat its impact, all of which are beyond our control. These potential impacts, while uncertain, could adversely affect our and our portfolio companies’ operating results and financial condition.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

Not applicable.

 

Item 3. Defaults Upon Senior Securities

 

Not applicable.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

None.


ITEM 6. EXHIBITS

 

Listed below are the exhibits which are filed as part of this report (according to the number assigned to them in Item 601 of Regulation S-K):

 

EXHIBIT INDEX

 

Exhibit

Number

 Description
3.1(a) Articles of Incorporation of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Form 10-Q for the quarterly period ended May 31, 2007).
3.1(b) Articles of Amendment of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed August 3, 2010).
3.1(c) Articles of Amendment of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed August 13, 2010).
3.2 Third Amended and Restated Bylaws of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 10-Q filed January 6, 2021)
4.1 Specimen certificate of Saratoga Investment Corp.’s common stock, par value $0.001 per share. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-169135, filed on September 1, 2010).
4.2 Registration Rights Agreement dated July 30, 2010 between GSC Investment Corp., GSC CDO III L.L.C., and the investors party thereto (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).
4.3 Dividend Reinvestment Plan (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on September 24, 2014).
4.4 Form of Indenture by and between the Company and U.S. Bank National Association, as trustee (incorporated by reference to Saratoga Investment Corp.’s Pre-Effective Amendment No. 2 to the Registration Statement on Form N-2, File No. 333-186323 filed April 30, 2013).
4.5 Form of Second Supplemental Indenture between the Company and U.S. Bank National Association (incorporated by reference to Amendment No. 2 to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-214182, filed on December 12, 2016).
4.6Form of Global Note (incorporated by reference to Exhibit 4.5 hereto, and Exhibit A therein).
4.7Form of Third Supplemental Indenture between the Company and U.S. Bank National Association (incorporated by reference to Post- Effective Amendment No. 9 to the Registrant’s Registration Statement on Form N-2, File No. 333-216344, filed on August 28, 2018).
4.8Form of Global Note (incorporated by reference to Exhibit 4.7 hereto, and Exhibit A therein).
4.9 Form of Articles Supplementary Establishing and Fixing the Rights and Preferences of Preferred Stock (incorporated by reference to Saratoga Investment Corp.’s registration statement on Form N-2 Pre-Effective Amendment No. 1, File No. 333-196526, filed on December 5, 2014).
4.10 Description of Securities. (incorporated by reference to Saratoga Investment Corp.’s Annual Report on Form 10-K filed on May 5, 2021).
4.114.6 Fourth Supplemental Indenture between the Company and U.S. Bank National Association, as trustee, relating to the 7.25% Note due 2025 (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 814-00732) filed on June 24, 2020).
4.12
4.7 Form of 7.25% Notes due 2025 (incorporated by reference to Exhibit 4.114.6 hereto).
4.13
4.8 Eighth Supplemental Indenture between the Company and U.S. Bank National Association, as trustee, relating to the 4.375% Note due 2026 (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 814-00732) filed on March 10, 2021).
4.14
4.9 Form of 4.375% Notes due 2026 (incorporated by reference to Exhibit 4.134.8 hereto).
10.1 Investment Advisory and Management Agreement dated July 30, 2010 between GSC Investment Corp. and Saratoga Investment Advisors, LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).
10.2 Custodian Agreement dated March 21, 2007 between GSC Investment LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Form 10-Q for the quarterly period ended May 31, 2007).
10.3 Administration Agreement dated July 30, 2010 between GSC Investment Corp. and Saratoga Investment Advisors, LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).


10.4 Trademark License Agreement dated July 30, 2010 between Saratoga Investment Advisors, LLC and GSC Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).


10.5Credit, Security and Management Agreement dated July 30, 2010 by and among GSC Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).
10.6 Form of Indemnification Agreement between Saratoga Investment Corp. and each officer and director of Saratoga Investment Corp. (incorporated by reference to Amendment No. 2 to Saratoga Investment Corp.’s Registration Statement on Form N-2 filed on January 12, 2007).
10.7 Amendment No. 1 to Credit, Security and Management Agreement dated February 24, 2012 by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on February 29, 2012).
10.810.6 Amended and Restated Indenture, dated as of November 15, 2016, among Saratoga Investment Corp. CLO 2013-1, Ltd., Saratoga Investment Corp. CLO 2013-1, Inc. and U.S. Bank National Association. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-216344, filed on February 28, 2017).
10.9 Amended and Restated Collateral Management Agreement, dated October 17, 2013, by and between Saratoga Investment Corp. and Saratoga Investment Corp. CLO 2013-1, Ltd. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-196526, filed on December 5, 2014).
10.10Amendment No. 2 to Credit, Security and Management Agreement dated September 17, 2014 by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on September 18, 2014).
10.11Amendment No. 3 to Credit, Security and Management Agreement, dated May 18, 2017, by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on May 18, 2017).
10.12Equity Distribution Agreement dated March 16, 2017, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc. and BB&T Capital Markets, a division of BB&T Securities, LLC (incorporated by reference to Saratoga Investment Corp.’s Post-Effective Amendment No. 1 to the Registration Statement on Form N-2, File No. 333-216344, filed on March 16, 2017).
10.13Amendment No. 1 to the Equity Distribution Agreement dated October 12, 2017, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and FBR Capital Markets & Co. (incorporated by reference to Saratoga Investment Corp.’s Post-Effective Amendment No. 2 to the Registration Statement on Form N-2, File No. 333-216344, filed on October 12, 2017).
10.14Amendment No. 2 to the Equity Distribution Agreement dated January 11, 2018, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and FBR Capital Markets & Co. (incorporated by reference to Saratoga Investment Corp.’s Post-Effective Amendment No. 3 to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-216344, filed on January 11, 2018).
10.15Amendment No. 3 to the Equity Distribution Agreement dated October 16, 2018, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and B. Riley FBR, Inc. (incorporated by reference to Post-Effective Amendment No. 1 to the registrant’s Registration Statement on Form N-2, File No. 333-227116, filed on October 16, 2018).
10.16Amendment No. 4 to the Equity Distribution Agreement dated July 11, 2019, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and B. Riley FBR, Inc. (incorporated by reference to Post-Effective Amendment No. 5 to the registrant’s Registration Statement on Form N-2, File No. 333-227116, filed on July 12, 2019).
10.17Amendment No. 5 to the Equity Distribution Agreement dated October 10, 2019, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division BB&T Securities, LLC, and B. Riley FBR, Inc. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 10, 2019).
10.18Amendment No. 4 to Credit, Security and Management Agreement, dated April 24, 2020, by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on April 29, 2020).


10.19Amendment No. 5 to Credit, Security and Management Agreement, dated September 14, 2020, by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on September 17, 2020).
10.2010.7 Amended and Restated Collateral Management Agreement, dated February 26, 2021, by and between Saratoga Investment Corp. and Saratoga Investment Corp. CLO 2013-1, Ltd. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on March 4, 2021).
10.21
10.8 Amended and Restated Collateral Administration Agreement, dated February 26, 2021, by and between Saratoga Investment Corp., Saratoga Investment Corp. CLO 2013-1, Ltd. and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on March 4, 2021).
11
10.9 ComputationEquity Distribution Agreement, dated July 30, 2021, by and among Saratoga Investment Corp. and Saratoga Investment Advisors, LLC, on the one hand, and Ladenburg Thalmann & Co. Inc. and Compass Point Research & Trading, LLC, on the other hand (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 2, 2021).
10.10Credit and Security Agreement, dated as of Per Share Earnings (included in Note 11October 4, 2021, by and among Saratoga Investment Funding II, LLC, Saratoga Investment Corp., as collateral manager and equityholder, the lenders party thereto, Encina Lender Finance, LLC, as administrative agent for the secured parties and the collateral agent, and U.S. Bank National Association, as collateral custodian for the secured parties thereto and as collateral administrator (incorporated by reference to the consolidated financial statements contained in this report)Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 7, 2021).
10.11Equity Pledge Agreement, dated as of October 4, 2021, by and between Saratoga Investment Corp. and Encina Lender Finance, LLC, as collateral agent for the secured parties thereto (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 7, 2021).
10.12Loan Sale and Contribution Agreement, dated as of October 4, 2021, by and between Saratoga Investment Corp., as seller, and Saratoga Investment Funding II LLC, as purchaser (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 7, 2021).
10.13Saratoga Senior Loan Fund I JV LLC Limited Liability Company Agreement, dated October 26, 2021, by and between Saratoga Investment Corp. and TJHA JV I LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 27, 2021).
14 Code of Ethics of the Company adopted under Rule 17j-1 (incorporated by reference to Amendment No.7 to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-138051, filed on March 22, 2007).
21.1 List of Subsidiaries (incorporated by reference to Saratoga Investment Corp.’s Annual Report on Form 10-K filed on May 6, 2020).
31.1* Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
31.2* Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
32.1* Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)U.S.C.1350)
32.2* Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

 

 

* Filed herewith

*Filed herewith

 


SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 SARATOGA INVESTMENT CORP.
   
Date: July 7, 2021January 5, 2022  By:/s/ CHRISTIAN L. OBERBECK
  Christian L. Oberbeck
  Chief Executive Officer
   
 By:/s/ HENRI J. STEENKAMP
  Henri J. Steenkamp
  Chief Financial Officer and Chief Compliance Officer

 

 

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