UNITED 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 AugustMay 31, 20212022

 

☐ 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
7.25% Notes due 2025 SAK The New York Stock Exchange
6.00% Notes due 2027SATThe 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 October 5, 2021July 6, 2022 was 11,364,831.11,984,898.

 

 

 

 

 

TABLE OF CONTENTS

 

   Page
PART I.FINANCIAL INFORMATION1
    
Item 1.Consolidated Financial Statements1
    
 Consolidated Statements of Assets and Liabilities as of AugustMay 31, 20212022 (unaudited) and February 28, 202120221
    
 Consolidated Statements of Operations for the three and six months ended AugustMay 31, 2022 (unaudited) and May 31, 2021 (unaudited) and August 31, 2020 (unaudited)2
    
 Consolidated Statements of Changes in Net Assets for three and six months ended AugustMay 31, 2022 (unaudited) and May 31, 2021 (unaudited) and August 31, 2020 (unaudited)3
    
 Consolidated Statements of Cash Flows for the sixthree months ended AugustMay 31, 2022 (unaudited) and May 31, 2021 (unaudited) and August 31, 2020 (unaudited)4
    
 Consolidated Schedules of Investments as of AugustMay 31, 20212022 (unaudited) and February 28, 202120225
    
 Notes to Consolidated Financial Statements as of AugustMay 31, 20212022 (unaudited)1916
    
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations8389
    
Item 3.Quantitative and Qualitative Disclosures About Market Risk117127
    
Item 4.Controls and Procedures118128
    
PART II.OTHER INFORMATION119129
    
Item 1.Legal Proceedings119129
    
Item 1A.Risk Factors119129
    
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds129
 120
Item 3.Defaults Upon Senior Securities129
Item 4.Mine Safety Disclosures129
Item 5.Other Information129
Item 6.Exhibits130
    
Item 3.SignaturesDefaults Upon Senior Securities120
Item 4.Mine Safety Disclosures120
Item 5.Other Information120
Item 6.Exhibits121
Signatures124132

 

i

 

PART I. FINANCIAL INFORMATION

 

Item 1. Consolidated Financial Statements

 

Saratoga Investment Corp.

Consolidated Statements of Assets and Liabilities

(unaudited)

  August 31,
2021		  February 28,
2021		 
  (unaudited)    
ASSETS      
Investments at fair value*      
Non-control/Non-affiliate investments (amortized cost of $525,118,034 and $478,588,197, respectively) $531,442,136  $476,139,943 
Affiliate investments (amortized cost of $48,669,364 and $10,071,722, respectively)  56,449,385   13,174,291 
Control investments (amortized cost of $67,821,806 and $61,353,761, respectively)  78,205,835   64,998,481 
Total investments at fair value (amortized cost of $641,609,204 and $550,013,680, respectively)  666,097,356   554,312,715 
Cash and cash equivalents  60,268,602   18,828,047 
Cash and cash equivalents, reserve accounts  13,040,805   11,087,027 
Interest receivable (net of reserve of $0 and $1,152,086, respectively)  5,114,727   4,223,630 
Due from affiliate (See Note 6)  -   2,719,000 
Management fee receivable  364,374   34,644 
Other assets  926,156   947,315 
Total assets $745,812,020  $592,152,378 
         
LIABILITIES        
Revolving credit facility $-  $- 
Deferred debt financing costs, revolving credit facility  (782,102)  (639,983)
SBA debentures payable  172,000,000   158,000,000 
Deferred debt financing costs, SBA debentures payable  (3,632,458)  (2,642,622)
6.25% Notes Payable 2025  -   60,000,000 
Deferred debt financing costs, 6.25% notes payable 2025  -   (1,675,064)
7.25% Notes Payable 2025  43,125,000   43,125,000 
Deferred debt financing costs, 7.25% notes payable 2025  (1,238,426)  (1,401,307)
7.75% Notes Payable 2025  5,000,000   5,000,000 
Deferred debt financing costs, 7.75% notes payable 2025  (211,573)  (239,222)
4.375% Notes Payable 2026  175,000,000   - 
Premium on 4.375% notes payable 2026  1,229,376   - 
Deferred debt financing costs, 4.375% notes payable 2026  (3,813,346)  - 
6.25% Notes Payable 2027  15,000,000   15,000,000 
Deferred debt financing costs, 6.25% notes payable 2027  (451,613)  (476,820)
Base management and incentive fees payable  11,424,984   6,556,674 
Deferred tax liability  3,512,481   1,922,664 
Accounts payable and accrued expenses  2,760,847   1,750,267 
Interest and debt fees payable  2,468,265   2,645,784 
Directors fees payable  -   70,500 
Due to manager  308,740   279,065 
Excise tax payable  -   691,672 
Total liabilities  421,700,175   287,966,608 
         
Commitments and contingencies (See Note 8)        
         
NET ASSETS        
Common stock, par value $0.001, 100,000,000 common shares        
authorized, 11,188,912 and 11,161,416 common shares issued and outstanding, respectively  11,189   11,161 
Capital in excess of par value  305,520,631   304,874,957 
Total distributable earnings (deficit)  18,580,025   (700,348)
Total net assets  324,111,845   304,185,770 
Total liabilities and net assets $745,812,020  $592,152,378 
NET ASSET VALUE PER SHARE $28.97  $27.25 

*

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

  May 31,
2022		  February 28,
2022		 
  (unaudited)    
ASSETS      
Investments at fair value      
Non-control/Non-affiliate investments (amortized cost of $732,722,272 and $654,965,044, respectively) $745,481,455  $668,358,516 
Affiliate investments (amortized cost of $53,468,875 and $46,224,927, respectively)  56,045,678   48,234,124 
Control investments (amortized cost of $96,356,420 and $95,058,356, respectively)  93,006,013   100,974,715 
Total investments at fair value (amortized cost of $882,547,567 and $796,248,327, respectively)  894,533,146   817,567,355 
Cash and cash equivalents  94,939,634   47,257,801 
Cash and cash equivalents, reserve accounts  6,550,220   5,612,541 
Interest receivable (net of reserve of $733,379 and $0, respectively)  5,325,756   5,093,561 
Due from affiliate (See Note 7)  105,637   90,968 
Management fee receivable  362,777   362,549 
Other assets  220,209   254,980 
Total assets $1,002,037,379  $876,239,755 
         
LIABILITIES        
Revolving credit facility $25,000,000  $12,500,000 
Deferred debt financing costs, revolving credit facility  (1,075,765)  (1,191,115)
SBA debentures payable  217,000,000   185,000,000 
Deferred debt financing costs, SBA debentures payable  (4,891,468)  (4,344,983)
7.25% Notes Payable 2025  43,125,000   43,125,000 
Deferred debt financing costs, 7.25% notes payable 2025  (996,761)  (1,078,201)
7.75% Notes Payable 2025  5,000,000   5,000,000 
Deferred debt financing costs, 7.75% notes payable 2025  (170,551)  (184,375)
4.375% Notes Payable 2026  175,000,000   175,000,000 
Premium on 4.375% notes payable 2026  1,033,136   1,086,013 
Deferred debt financing costs, 4.375% notes payable 2026  (3,183,076)  (3,395,435)
4.35% Notes Payable 2027  75,000,000   75,000,000 
Discount on 4.35% notes payable 2027  (470,120)  (499,263)
Deferred debt financing costs, 4.35% notes payable 2027  (1,636,102)  (1,722,908)
6.25% Notes Payable 2027  15,000,000   15,000,000 
Deferred debt financing costs, 6.25% notes payable 2027  (398,281)  (416,253)
6.00% Notes Payable 2027  97,500,000   - 
Deferred debt financing costs, 6.00% notes payable 2027  (3,276,855)  - 
Base management and incentive fees payable  8,637,481   12,947,025 
Deferred tax liability  1,578,323   1,249,015 
Accounts payable and accrued expenses  1,020,841   799,058 
Current income tax payable  2,690,196   2,820,036 
Interest and debt fees payable  5,129,247   2,801,621 
Directors fees payable  108,566   70,000 
Due to manager  77,757   263,814 
Excise tax payable  -   630,183 
Total liabilities  656,801,568   520,459,232 
         
Commitments and contingencies (See Note 9)        
         
NET ASSETS        
Common stock, par value $0.001, 100,000,000 common shares authorized, 12,031,998 and 12,131,350 common shares issued and outstanding, respectively  12,032   12,131 
Capital in excess of par value  325,433,869   328,062,246 
Total distributable earnings (deficit)  19,789,910   27,706,146 
Total net assets  345,235,811   355,780,523 
Total liabilities and net assets $1,002,037,379  $876,239,755 
NET ASSET VALUE PER SHARE $28.69  $29.33 

 

See accompanying notes to consolidated financial statements.

 

1


 

Saratoga Investment Corp.

Consolidated Statements of Operations

(unaudited)

 

 For the three months ended  For the six months ended  For the three months ended 
 August 31,
2021		  August 31,
2020		  August 31,
2021		  August 31,
2020		  May 31,
2022		  May 31,
2021		 
INVESTMENT INCOME              
Interest from investments              
Interest income:*         
Interest income:     
Non-control/Non-affiliate investments $11,298,024  $10,375,636  $22,534,761  $20,499,197  $13,851,146  $11,236,737 
Affiliate investments  936,508   220,136   1,277,020   450,507   1,050,148   340,512 
Control investments  2,059,101   1,249,971   3,914,086   2,383,556   1,546,130   1,854,985 
Payment-in-kind interest income:                        
Non-control/Non-affiliate investments  710,329   328,938   887,095   910,884   85,681   176,766 
Affiliate investments  -   48,018   -   94,241   -   - 
Control investments  109,971   37,771   187,646   72,553   73,221   77,675 
Total interest from investments  15,113,933   12,260,470   28,800,608   24,410,938   16,606,326   13,686,675 
Interest from cash and cash equivalents  1,071   1,610   1,593   13,406   717   522 
Management fee income  814,622   625,436   1,632,854   1,260,008   815,964   818,232 
Dividend Income  658,881   -   1,057,498   - 
Dividend Income*  300,129   398,616 
Structuring and advisory fee income  1,038,250   940,000   2,340,125   1,253,306   851,728   1,301,875 
Other income  814,926   28,060   1,424,995   215,060 
Other income*  104,268   610,070 
Total investment income  18,441,683   13,855,576   35,257,673   27,152,718   18,679,132   16,815,990 
                        
OPERATING EXPENSES                        
Interest and debt financing expenses  5,184,184   3,328,447   9,525,096   5,892,323   6,871,513   4,340,912 
Base management fees  3,002,097   2,209,052   5,761,005   4,369,580   3,802,063   2,758,908 
Incentive management fees expense (benefit)  2,018,163   1,529,677   7,280,699   (328,633)  (1,903,985)  5,262,536 
Professional fees  460,753   367,553   967,814   754,441   417,325   507,061 
Administrator expenses  712,500   602,083   1,406,250   1,158,333   750,000   693,750 
Insurance  86,318   67,727   172,636   135,453   87,310   86,318 
Directors fees and expenses  100,500   75,000   192,500   135,000   110,000   92,000 
General & administrative  453,225   333,824   943,876   684,638 
General and administrative  667,416   490,651 
Income tax expense (benefit)  30,682   7,501   58,601   (1,444)  (98,732)  27,919 
Total operating expenses  12,048,422   8,520,864   26,308,477   12,799,691   10,702,910   14,260,055 
NET INVESTMENT INCOME  6,393,261   5,334,712   8,949,196   14,353,027   7,976,222   2,555,935 
                        
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS                        
Net realized gain (loss) from investments:                        
Non-control/Non-affiliate investments  1,641,462   11,929   3,551,605   20,409   162,509   1,910,141 
Affiliate investments  -   - 
Control investments  (139,867)  -   (139,867)  -   -   - 
Net realized gain (loss) from investments  1,501,595   11,929   3,411,738   20,409   162,509   1,910,141 
Income tax (provision) benefit from realized gain on investments  (448,883)  -   (448,883)  -   69,250   - 
Net change in unrealized appreciation (depreciation) on investments:*                
Net change in unrealized appreciation (depreciation) on investments:        
Non-control/Non-affiliate investments  2,256,932   10,532,000   8,772,357   (14,212,906)  (634,289)  5,448,887 
Affiliate investments  2,681,640   706,760   4,677,451   (1,415,479)  567,606   3,062,348 
Control investments  (1,562,033)  5,341,641   6,739,309   258,417   (9,266,766)  8,301,342 
Net change in unrealized appreciation (depreciation) on investments  3,376,539   16,580,401   20,189,117   (15,369,968)  (9,333,449)  16,812,577 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  (1,328,711)  (116,521)  (1,558,855)  151,219   (361,951)  (230,144)
Net realized and unrealized gain (loss) on investments  3,100,540   16,475,809   21,593,117   (15,198,340)  (9,463,641)  18,492,574 
Realized losses on extinguishment of debt  (1,552,140)  -   (1,552,140)  - 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $7,941,661  $21,810,521  $28,990,173  $(845,313) $(1,487,419) $21,048,509 
                        
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE $0.71  $1.95  $2.59  $(0.08) $(0.12) $1.88 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED  11,175,436   11,207,142   11,172,787   11,212,315   12,112,372   11,170,045 

 

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

 

See accompanying notes to consolidated financial statements.

 


Saratoga Investment Corp.

Consolidated Statements of Changes in Net Assets

(unaudited)

 

 For the six months ended  For the three months ended 
 August 31,
2021		  August 31,
2020		  May 31,
2022		  May 31,
2021		 
INCREASE (DECREASE) FROM OPERATIONS:             
Net investment income $8,949,196  $14,353,027  $7,976,222  $2,555,935 
Net realized gain from investments  3,411,738   20,409   162,509   1,910,141 
Realized losses on extinguishment of debt  (1,552,140)  -   -   - 
Income tax (provision) benefit from realized gain on investments  (448,883)  -   69,250   - 
Net change in unrealized appreciation (depreciation) on investments  20,189,117   (15,369,968)  (9,333,449)  16,812,577 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  (1,558,855)  151,219   (361,951)  (230,144)
Net increase (decrease) in net assets resulting from operations  28,990,173   (845,313)  (1,487,419)  21,048,509 
                
DECREASE FROM SHAREHOLDER DISTRIBUTIONS:                
Total distributions to shareholders  (9,709,800)  (4,487,015)  (6,428,817)  (4,799,405)
Net decrease in net assets from shareholder distributions  (9,709,800)  (4,487,015)  (6,428,817)  (4,799,405)
                
CAPITAL SHARE TRANSACTIONS:                
Proceeds from issuance of common stock  157,040   - 
Stock dividend distribution  1,742,614   774,990   1,108,680   914,102 
Repurchases of common stock  (1,252,143)  (1,550,417)  (3,734,316)  (1,003,420)
Repurchase fees  (992)  (1,740)  (2,840)  (800)
Offering costs  (817)  - 
Net increase in net assets from capital share transactions  645,702   (777,167)
Net increase (decrease) in net assets from capital share transactions  (2,628,476)  (90,118)
Total increase (decrease) in net assets  19,926,075   (6,109,495)  (10,544,712)  16,158,986 
Net assets at beginning of period  304,185,770   304,286,853   355,780,523   304,185,770 
Net assets at end of period $324,111,845  $298,177,358  $345,235,811  $320,344,756 

 

See accompanying notes to consolidated financial statements.

3


 

Saratoga Investment Corp.

Consolidated Statements of Cash Flows

(unaudited)

 

 For the six months ended  For the three months ended 
 August 31,
2021		  August 31,
2020		  May 31,
2022		  May 31,
2021		 
Operating activities             
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $28,990,173  $(845,313) $(1,487,419) $21,048,509 
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  (1,905,423)  846,330   1,322,915   (191,699)
Net accretion of discount on investments  (884,936)  (605,955)  (350,408)  (321,106)
Amortization of deferred debt financing costs  1,023,062   622,164   798,768   470,314 
Realized losses on extinguishment of debt  1,552,140   - 
Income tax expense (benefit)  30,964   (1,444)  (37,823)  27,919 
Net realized (gain) loss from investments  (3,411,738)  (20,409)  (162,509)  (1,910,141)
Net change in unrealized (appreciation) depreciation on investments  (20,189,117)  15,369,968   9,333,449   (16,812,577)
Net change in provision for deferred taxes on unrealized appreciation (depreciation) on investments  1,558,855   (151,219)  361,951   230,144 
Proceeds from sales and repayments of investments  149,787,188   32,632,779   10,088,607   14,941,409 
Purchases of investments  (235,180,617)  (70,707,731)  (97,197,844)  (119,166,038)
(Increase) decrease in operating assets:                
Interest receivable  (891,097)  413,938   (232,195)  (2,398,700)
Due from affiliate  2,719,000   -   (14,669)  119,000 
Management and incentive fee receivable  (329,730)  (11,915)  (228)  (818,232)
Other assets  (60,140)  61,775   34,771   78,581 
Increase (decrease) in operating liabilities:                
Base management and incentive fees payable  4,868,310   (12,061,368)  (4,309,544)  4,171,274 
Accounts payable and accrued expenses  1,010,580   103,461   221,783   236,250 
Current tax payable  (129,840)  - 
Interest and debt fees payable  (177,519)  53,271   2,327,626   (882,442)
Directors fees payable  (70,500)  (2,000)  38,566   21,500 
Excise tax payable  (691,672)  -   (630,183)  (691,672)
Due to manager  29,675   (247,861)  (186,057)  88,948 
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES  (72,222,542)  (34,551,529)  (80,210,283)  (101,758,759)
                
Financing activities                
Borrowings on debt  87,500,000   20,000,000   44,500,000   49,000,000 
Paydowns on debt  (73,500,000)  - 
Issuance of notes  175,000,000   48,125,000   97,500,000   50,000,000 
Repayments of notes  (60,000,000)  - 
Payments of deferred debt financing costs  (5,569,027)  (2,364,458)  (4,112,912)  (2,289,179)
Premium on debt issuance, 4.375% notes 2026  1,250,000   - 
Proceeds from issuance of common stock  157,040   -
Payments of cash dividends  (7,967,186)  (3,712,025)  (5,320,137)  (3,885,303)
Repurchases of common stock  (1,252,143)  (1,550,417)  (3,734,316)  (1,003,420)
Repurchases fees  (992)  (1,740)  (2,840)  (800)
Payments of offering costs  (817)  - 
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES  115,616,875   60,496,360   128,829,795   91,821,298 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS  43,394,333   25,944,831   48,619,512   (9,937,461)
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD  29,915,074   39,450,352   52,870,342   29,915,074 
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD $73,309,407  $65,395,183  $101,489,854  $19,977,613 
                
Supplemental information:                
Interest paid during the period $8,679,552  $5,216,888  $3,589,281  $4,753,043 
Cash paid for taxes  703,158   13,830   374   692,740 
Supplemental non-cash information:                
Payment-in-kind interest income and other adjustments to cost  1,905,423   (846,330)  (1,322,915)  191,699 
Net accretion of discount on investments  884,936   605,955   350,408   321,106 
Amortization of deferred debt financing costs  1,023,062   622,164   798,768   470,314 
Stock dividend distribution  1,742,614   774,990   1,108,680   914,102 

 

See accompanying notes to consolidated financial statements.


Saratoga Investment Corp.

Consolidated Schedule of Investments

AugustMay 31, 20212022

(unaudited)

 

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 - 163.5% (b)           
Targus Holdings, Inc. (d), (h) Consumer Products Common Stock 12/31/2009  210,456  $1,589,630  $531,247   0.2%
Non-control/Non-affiliate investments - 213.8% (b)Non-control/Non-affiliate investments - 213.8% (b)         
Targus Holdings, Inc. (h) Consumer Products Common Stock 12/31/2009 210,456 $1,589,630 $699,494  0.2%
   Total Consumer Products        1,589,630   531,247   0.2%   Total Consumer Products      1,589,630  699,494  0.2%
Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020  226,782   475,698   3,258,360   1.0% Corporate Education Software Series 1 Membership Interest 12/8/2020 1,050  475,698  3,448,050  1.0%
   Total Corporate Education Software      475,698  3,448,050  1.0%
GreyHeller LLC (h) Cyber Security Common Stock 11/10/2021 7,857,689  1,906,275  2,374,651  0.7%
   Total Corporate Education Software        475,698   3,258,360   1.0%   Total Cyber Security      1,906,275  2,374,651  0.7%
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   6,497,689   6,630,383   2.0% Dental Practice Management First Lien Term Loan
(3M USD LIBOR+8.00%), 9.61% Cash, 11/25/2025		 11/25/2020 $6,555,000 6,507,634 6,519,603 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   2,130,984   2,174,725   0.7% Dental Practice Management Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 9.61% Cash, 11/25/2025		 11/25/2020 $2,150,000  2,134,277  2,138,390  0.6%
   Total Dental Practice Management      8,628,673   8,805,108   2.7%   Total Dental Practice Management    8,641,911  8,657,993  2.5%
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   13,910,371   14,140,000   4.4%
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   6,947,336   7,070,000   2.2%
PDDS Buyer, LLC (h)(d) Dental Practice Management Software Series A-1 Preferred Shares 8/10/2020  1,755,831   2,000,000   2,567,171   0.8% Dental Practice Management Software First Lien Term Loan
(3M USD LIBOR+5.50%), 7.11% Cash, 7/15/2024		 7/15/2019 $49,000,000 48,786,954 49,000,000 14.2%
PDDS Buyer, LLC (h) Dental Practice Management Software Series A-1 Preferred Shares 8/10/2020 1,755,831  2,000,000  9,994,778  2.9%
   Total Dental Practice Management Software      22,857,707   23,777,171   7.4%   Total Dental Practice Management Software      50,786,954  58,994,778  17.1%
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   18,475,029   16,141,250   5.0%
Exigo, LLC Direct Selling Software First Lien Term Loan
(1M USD LIBOR+5.75%), 6.87% Cash, 3/16/2027		 3/16/2022 $25,000,000 24,794,011 24,750,000 7.2%
Exigo, LLC (j) Direct Selling Software Delayed Draw Term Loan
(1M USD LIBOR+5.75%), 6.87% Cash, 3/16/2027		 3/16/2022 $- - - 0.0%
Exigo, LLC (j) Direct Selling Software Revolving Credit Facility
(1M USD LIBOR+5.75%), 6.87% Cash, 3/16/2027		 3/16/2022 $208,333 208,333 206,250 0.1%
Exigo, LLC (h), (i) Direct Selling Software Common Units 3/16/2022 1,041,667  1,041,667  1,041,667  0.3%
   Total Direct Selling Software    26,044,011  25,997,917  7.6%
C2 Educational Systems Education Services First Lien Term Loan
(3M USD LIBOR+8.50%), 10.11% Cash, 5/31/2023		 5/31/2017 $18,500,000 18,487,150 18,413,050 5.3%
C2 Education Systems, Inc. (h) Education Services Series A-1 Preferred Stock 5/18/2021  3,127   499,904   508,955   0.2% Education Services Series A-1 Preferred Stock 5/18/2021 3,127 499,904 611,355 0.2%
Texas Teachers of Tomorrow, LLC (h), (i) Education Services Common Stock 12/2/2015  750   750,000   3,334,832   1.0%
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 $25,695,971   25,523,797   25,988,906   8.0%
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   15,864,040   15,840,000   4.9% Education Services First Lien Term Loan
(3M USD LIBOR+5.50%), 7.11% Cash, 5/11/2026		 5/11/2021 $16,000,000 15,884,618 15,804,800 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% Education Services Delayed Draw Term Loan
(3M USD LIBOR+5.50%), 7.11% Cash, 5/11/2026		 5/11/2021 $500,000 496,063 481,700 0.1%
Zollege PBC (h) Education Services Class A Units 5/11/2021  250,000   250,000   250,000   0.1% Education Services Class A Units 5/11/2021 250,000  250,000  200,342  0.1%
   Total Education Services      61,362,770   62,063,943   19.2%   Total Education Services    35,617,735  35,511,247  10.3%
Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018 3,065 3,969,291 8,339,265 2.4%
Identity Automation Systems (d) Education Software First Lien Term Loan
(3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024		 8/25/2014 $16,831,875 16,831,875 16,784,746 4.9%
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014 232,616 232,616 544,519 0.2%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020 43,715 171,571 204,866 0.1%
GoReact Education Software First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/17/2020 $8,000,000 7,927,226 7,992,800 2.3%
GoReact (j) Education Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/18/2022 $2,000,000  2,000,000  1,998,200  0.6%
   Total Education Software      31,132,579  35,864,396  10.5%
TG Pressure Washing Holdings, LLC (h) Facilities Maintenance Preferred Equity 8/12/2019 488,148  488,148  499,634  0.1%
   Total Facilities Maintenance      488,148  499,634  0.1%
Davisware, LLC Field Service Management First Lien Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $6,000,000 5,960,141 5,954,400 1.7%
Davisware, LLC (j) Field Service Management Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $977,790  975,859  970,359  0.3%
   Total Field Service Management    6,936,000  6,924,759  2.0%
GDS Software Holdings, LLC Financial Services First Lien Term Loan
(3M USD LIBOR+7.00%), 8.61% Cash, 12/30/2026		 12/30/2021 $22,713,926 22,586,066 22,566,286 6.5%
GDS Software Holdings, LLC (j) Financial Services Delayed Draw Term loan
(3M USD LIBOR+7.00%), 8.61% Cash, 12/30/2026		 12/30/2021 $1,500,000 1,485,719 1,490,250 0.4%
GDS Software Holdings, LLC (h) Financial Services Common Stock Class A Units 8/23/2018 250,000  250,000  503,775  0.1%
   Total Financial Services    24,321,785  24,560,311  7.0%
Ascend Software, LLC Financial Services Software First Lien Term Loan
(3M USD LIBOR+7.50%), 9.11% Cash, 12/15/2026		 12/15/2021 $6,000,000 5,945,623 5,940,000 1.7%
Ascend Software, LLC (j) Financial Services Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 9.11% Cash, 12/15/2026		 12/15/2021 $1,300,000  1,287,170  1,287,000  0.4%
   Total Financial Services Software      7,232,793  7,227,000  2.1%
Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock 1/15/2016 5,000  380,353  634,183  0.2%
   Total Healthcare Products Manufacturing      380,353  634,183  0.2%
Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018 $400,000 400,000 1,269,248 0.4%
Axiom Purchaser, Inc. (d) Healthcare Services First Lien Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023		 6/19/2018 $7,500,000 7,484,272 7,479,750 2.2%
Axiom Purchaser, Inc. (d) Healthcare Services Delayed Draw Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023		 6/19/2018 $4,500,000 4,486,480 4,487,850 1.3%
ComForCare Health Care (d) Healthcare Services First Lien Term Loan
(3M USD LIBOR+6.25%), 7.86% Cash, 1/31/2025		 1/31/2017 $25,000,000  24,908,782  25,000,000  7.2%
   Total Healthcare Services    37,279,534  38,236,848  11.1%

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  2,487   2,816,693   3,912,271   1.1%
HemaTerra Holding Company, LLC (d) Healthcare Software First Lien Term Loan
(3M USD LIBOR+8.25%), 9.86% Cash, 1/31/2026		 4/15/2019 $35,910,000   35,636,083   35,550,900   10.3%
HemaTerra Holding Company, LLC (d) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+8.25%), 9.86% Cash, 1/31/2026		 4/15/2019 $13,965,000   13,881,774   13,825,350   4.0%
Procurement Partners, LLC Healthcare Software First Lien Term Loan
(3M USD LIBOR+5.50%), 7.11% Cash, 11/12/2025		 11/12/2020 $35,125,000   34,848,066   34,896,688   10.1%
Procurement Partners, LLC (j) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+5.50%), 7.11% Cash, 11/12/2025		 11/12/2020 $1,200,000   1,188,650   1,192,200   0.3%
Procurement Partners Holdings LLC (h) Healthcare Software Class A Units 11/12/2020  550,986   550,986   630,757   0.2%
    Total Healthcare Software        88,922,252   90,008,166   26.0%
Roscoe Medical, Inc. (h) Healthcare Supply Common Stock 3/26/2014  5,081   508,077   -   0.0%
    Total Healthcare Supply        508,077   -   0.0%
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   3,113,515   3,103,270   0.9%
Book4Time, Inc. (a) Hospitality/Hotel Delayed Draw Term Loan
(3M USD LIBOR+8.50%), 10.25%, 12/22/2025		 12/22/2020 $2,000,000   1,980,015   1,978,800   0.6%
Book4Time, Inc. (a), (h), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020  200,000   156,826   216,744   0.1%
Knowland Group, LLC (k) Hospitality/Hotel Second Lien Term Loan
(3M USD LIBOR+8.00%), 10.00% Cash/1.00% PIK, 5/9/2024		 11/9/2018 $15,878,989   15,878,989   10,059,339   2.9%
Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan
(3M USD LIBOR+8.00%), 9.61% Cash, 9/2/2026		 4/27/2020 $6,000,000   5,954,100   5,904,000   1.7%
Sceptre Hospitality Resources, LLC (j) Hospitality/Hotel Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 9.61% Cash, 9/2/2026		 9/2/2021 $750,000   742,524   738,000   0.2%
    Total Hospitality/Hotel        27,825,969   22,000,153   6.4%
Granite Comfort, LP HVAC Services and Sales First Lien Term Loan
(3M USD LIBOR+7.00%), 8.61% Cash, 11/16/2025		 11/16/2020 $33,000,000   32,734,758   33,059,400   9.6%
Granite Comfort, LP(j) HVAC Services and Sales Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 8.61% Cash, 11/16/2025		 11/16/2020 $2,000,000   1,981,632   2,003,600   0.6%
    Total HVAC Services and Sales        34,716,390   35,063,000   10.2%
AgencyBloc, LLC Insurance Software First Lien Term Loan
(3M USD BSBY+8.00%), 9.52% Cash, 10/1/2026		 10/1/2021 $9,000,000   8,930,595   8,862,300   2.6%
Panther ParentCo LLC (h) Insurance Software Class A Units 10/1/2021  2,000,000   2,000,000   2,334,414   0.7%
    Total Insurance Software        10,930,595   11,196,714   3.3%
Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan
(3M USD LIBOR+6.50%), 8.11% Cash, 3/6/2025		 3/6/2013 $4,746,986   4,746,986   4,705,213   1.4%
Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015  343   -   3,978,000   1.2%
    Total Industrial Products        4,746,986   8,683,213   2.6%
LogicMonitor, Inc. (d) IT Services First Lien Term Loan
(3M USD LIBOR+5.00), 6.61% Cash, 5/17/2023		 3/20/2020 $43,000,000   42,851,422   43,000,000   12.5%
       Total IT Services        42,851,422   43,000,000   12.5%
Centerbase, LLC Legal Software First Lien Term Loan
(Daily USD SOFR+7.75%), 8.75% Cash, 1/18/2027		 1/18/2022 $21,408,000   21,186,767   21,193,920   6.1%
      Total Legal Software        21,186,767   21,193,920   6.1%
Madison Logic, Inc. Marketing Orchestration Software First Lien Term Loan
(1M USD LIBOR+5.50%), 6.62% Cash, 11/22/2026		 12/10/2021 $28,843,373   28,722,334   28,704,925   8.3%
Madison Logic, Inc. (j) Marketing Orchestration Software Revolving Credit Facility
(1M USD LIBOR+5.50%), 6.62% Cash, 11/22/2026		 12/10/2021 $-   -   -   0.0%
    Total Marketing Orchestration Software        28,722,334   28,704,925   8.3%
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   12,148,027   12,151,200   3.5%
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   4,976,703   4,980,000   1.4%
      Total Marketing Services        17,124,730   17,131,200   4.9%
Chronus LLC Mentoring Software First Lien Term Loan
(3M USD LIBOR+5.25), 6.86% Cash, 8/26/2026		 8/26/2021 $15,000,000   14,870,093   14,920,500   4.3%
Chronus LLC (h) Mentoring Software Series A Preferred Stock 8/26/2021  3,000   3,000,000   3,389,432   1.0%
    Total Mentoring Software        17,870,093   18,309,932   5.3%

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/1.00% PIK, 5/29/2023		 5/29/2018 $10,036,289   9,993,648   9,939,941   2.9%
    Total Non-profit Services        9,993,648   9,939,941   2.9%
Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note
(3M USD LIBOR+8.50%), 10.11% Cash, 12/31/2023		 12/28/2012 $3,300,000   3,300,000   3,252,150   0.9%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests
Expires 12/28/2022		 12/28/2012  49,318   400,000   507,642   0.1%
      Total Office Supplies        3,700,000   3,759,792   1.0%
Apex Holdings Software Technologies, LLC Payroll Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.61% Cash, 9/21/2024		 9/21/2016 $16,500,000   16,492,637   16,488,450   4.7%
    Total Payroll Services        16,492,637   16,488,450   4.7%
Buildout, Inc. Real Estate Services First Lien Term Loan
(3M USD LIBOR+7.00%), 8.61% Cash, 7/9/2025		 7/9/2020 $14,000,000   13,904,509   13,904,800   4.0%
Buildout, Inc. Real Estate Services Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 8.61% Cash, 7/9/2025		 2/12/2021 $38,500,000   38,190,646   38,238,200   11.0%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020  1,205   1,205,308   1,256,264   0.4%
    Total Real Estate Services        53,300,463   53,399,264   15.4%
LFR Chicken LLC Restaurant First Lien Term Loan
(1M USD LIBOR+7.00%), 8.12% Cash, 11/19/2026		 11/19/2021 $12,000,000   11,893,721   11,851,200   3.4%
LFR Chicken LLC (j) Restaurant Delayed Draw Term Loan
(1M USD LIBOR+7.00%), 8.12% Cash, 11/19/2026		 11/19/2021 $9,000,000   8,912,727   8,888,400   2.6%
LFR Chicken LLC (h) Restaurant Series B Preferred Units 11/19/2021  497,183   1,000,000   1,196,146   0.3%
TMAC Acquisition Co., LLC Restaurant Unsecured Term Loan
8.00% PIK, 9/01/2023		 3/1/2018 $2,979,312   2,979,312   2,785,387   0.8%
    Total Restaurant        24,785,760   24,721,133   7.1%
Pepper Palace, Inc. (d) Specialty Food Retailer First Lien Term Loan
(3M USD LIBOR+6.25%), 7.86% Cash, 6/30/2026		 6/30/2021 $33,745,000   33,458,240   28,828,353   8.3%
Pepper Palace, Inc. (j) Specialty Food Retailer Delayed Draw Term Loan
(3M USD LIBOR+6.25%), 7.86% Cash, 6/30/2026		 6/30/2021 $-   -   -   0.0%
Pepper Palace, Inc. (j) Specialty Food Retailer Revolving Credit Facility
(3M USD LIBOR+6.25%), 7.86% 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   157,598   -0.1%
      Total Specialty Food Retailer        34,458,240   28,985,951   8.2%
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   25,864,509   25,706,200   7.3%
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   988,700   0.3%
    Total Sports Management        26,864,509   26,694,900   7.6%
Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014  100,000   100,000   2,059,840   0.6%
    Total Staffing Services        100,000   2,059,840   0.6%
JDXpert Talent Acquisition Software First Lien Term Loan
(3M USD LIBOR+8.50%), 10.11% Cash, 5/2/2027		 5/2/2022 $6,000,000   5,940,044   5,940,000     
JDXpert (j) Talent Acquisition Software Delayed Draw Term Loan
(3M USD LIBOR+8.50%), 10.11% Cash, 5/2/2027		 5/2/2022 $-   -   -     
Jobvite, Inc. (d) Talent Acquisition Software Second Lien Term Loan
(3M USD LIBOR+7.50%), 9.11% Cash, 1/6/2027		 7/6/2021 $20,000,000   19,847,950   19,576,000   5.7%
    Total Talent Acquisition Software        25,787,994   25,516,000   5.7%
National Waste Partners (d) Waste Services Second Lien Term Loan
10.00% Cash, 11/13/2022		 2/13/2017 $9,000,000   9,000,000   8,993,700   2.6%
    Total Waste Services        9,000,000   8,993,700   2.6%
Sub Total Non-control/Non-affiliate investments          732,722,272   745,481,455   213.8%
Affiliate investments - 16.2% (b)                    
Artemis Wax Corp. (d), (f), (j) Consumer Services Delayed Draw Term Loan
(1M USD LIBOR+9.00%), 11.00% Cash, 5/20/2026		 5/20/2021 $30,000,000   29,741,794   29,949,000   8.7%
Artemis Wax Corp. (f) Consumer Services Delayed Draw Term Loan
(1M USD LIBOR+6.50%), 8.50% Cash, 5/20/2026		 5/19/2022 $6,000,000   5,940,132   5,989,800   1.7%
Artemis Wax Corp. (f), (h) Consumer Services Series B-1 Preferred Stock 5/20/2021  934,463   1,500,000   2,837,765   0.8%
Artemis Wax Corp. (f), (h) Consumer Services Series C Preferred Stock 5/20/2021  5,745   5,745,485   5,745,481   1.7%
      Total Consumer Services        42,927,411   44,522,046   12.9%

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
(3M USD LIBOR+10.00%), 11.61% Cash, 6/30/2026		 6/30/2021 $5,500,000   5,452,434   5,513,200   1.6%
Axero Holdings, LLC (f), (j) Employee Collaboration Software Delayed Draw Term Loan
(3M USD LIBOR+10.00%), 11.61% Cash, 6/30/2026		 6/30/2021 $1,100,000   1,089,030   1,102,640   0.3%
Axero Holdings, LLC (f), (j) Employee Collaboration Software Revolving Credit Facility
(3M USD LIBOR+10.00%), 11.61% Cash, 6/30/2026		 2/3/2022 $-   -   -   0.0%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series A Preferred Units 6/30/2021  2,000,000   2,000,000   2,275,000   0.6%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series B Preferred Units 6/30/2021  2,000,000   2,000,000   2,632,792   0.8%
      Total Employee Collaboration Software        10,541,464   11,523,632   3.3%
Sub Total Affiliate investments          53,468,875   56,045,678   16.2%
Control investments - 26.8% (b)                    
Netreo Holdings, LLC (g) IT Services First Lien Term Loan
(3M USD LIBOR +8.00%), 9.61% Cash
12/31/2025		 7/3/2018 $5,466,933   5,444,758   5,463,653   1.5%
Netreo Holdings, LLC (d), (g), (j) IT Services Delayed Draw Term Loan
(3M USD LIBOR +8.00%), 9.61% Cash,
12/31/2025		 5/26/2020 $16,019,435   15,968,598   16,009,823   4.6%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018  4,600,677   8,344,500   18,270,011   5.3%
      Total IT Services        29,757,856   39,743,487   11.4%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities
5.15%, 4/20/2033		 1/22/2008 $111,000,000   30,973,564   24,117,794   7.0%
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%), 11.61%, 4/20/2033		 8/9/2021 $9,375,000   9,375,000   9,375,000   2.7%
    Total Structured Finance Securities        40,348,564   33,492,794   9.7%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Unsecured Loan
10.00%, 6/15/2023		 2/17/2022 $13,125,000   13,125,000   13,125,000   3.8%
Saratoga Senior Loan Fund I JV, LLC (a), (g) Investment Fund Membership Interest 2/17/2022  13,125,000   13,125,000   6,644,732   1.9%
    Total Investment Fund        26,250,000   19,769,732   5.7%
Sub Total Control investments          96,356,420   93,006,013   26.8%
TOTAL INVESTMENTS - 256.8% (b)         $882,547,567  $894,533,146   256.8%

  Number of Shares  Cost  Fair Value  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 29.4% (b)            
U.S. Bank Money Market (l)  101,489,854  $101,489,854  $101,489,854   29.4%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  101,489,854  $101,489,854  $101,489,854   29.4%

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

 


Company Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018  3,064   3,969,291   6,217,585   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 $17,160,000   17,160,000   17,160,000   5.3%
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014  232,616   232,616   747,032   0.2%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020  43,715   171,571   193,081   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   4,946,581   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        28,480,059   31,317,698   9.6%
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   4,964,713   4,956,500   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   5,450,772   5,452,150   1.8%
TG Pressure Washing Holdings, LLC (f), (h) Facilities Maintenance Preferred Equity 8/12/2019  488,148   488,148   307,180   0.1%
      Total Facilities Maintenance        10,903,633   10,715,830   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   2,980,638   3,033,900   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   975,088   988,839   0.3%
    Total Field Service Management        3,955,726   4,022,739   1.2%
GDS Software Holdings, LLC  (h) Financial Services Common Stock Class A Units 8/23/2018  250,000   250,000   470,147   0.1%
    Total Financial Services        250,000   470,147   0.1%
Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock 1/15/2016  5,000   380,353   624,713   0.2%
    Total Healthcare Products Manufacturing        380,353   624,713   0.2%
Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018  400,000   400,000   903,096   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   9,963,054   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   5,968,772   6,035,400   1.9%
ComForCare Health Care (d) Healthcare Services First Lien Term Loan
(3M USD LIBOR+7.75%), 8.75% Cash, 1/31/2025		 1/31/2017 $25,000,000   24,878,938   25,000,000   7.7%
      Total Healthcare Services        41,210,764   41,997,496   13.0%


Company 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   2,875,793   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   35,669,821   35,899,200   11.1%
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   11,922,307   11,966,400   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 $23,125,000   22,909,487   22,974,688   7.1%
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 Class A Units   11/12/2020  381,456   381,456   433,543   0.1%
    Total Healthcare Software        73,194,000   74,149,624   22.9%
Roscoe Medical, Inc. (d), (h) Healthcare Supply Common Stock 3/26/2014  5,081   508,077   209,500   0.1%
Roscoe Medical, Inc. Healthcare Supply Second Lien Term Loan
11.25% Cash, 3/31/2022		 3/26/2014 $5,141,413   5,141,413   5,205,680   1.6%
      Total Healthcare Supply        5,649,490   5,415,180   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   3,108,872   3,137,144   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), (h), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020 $200,000   156,826   211,273   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 $15,798,140   15,798,140   10,837,346   3.3%
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   2,976,412   2,985,000   0.9%
      Total Hospitality/Hotel        22,040,250   17,170,763   5.3%


Company Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
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   19,819,474   19,952,000   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        19,819,474   19,952,000   6.2%
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 $5,596,946   5,596,946   5,596,946   1.7%
Vector Controls Holding Co., LLC (d), (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015  343   -   2,273,252   0.7%
      Total Industrial Products        5,596,946   7,870,198   2.4%
LogicMonitor, Inc. IT Services First Lien Term Loan
(3M USD LIBOR+5.00), 6.00% Cash, 5/17/2023		 3/20/2020 $33,000,000   32,826,640   33,000,000   10.2%
       Total IT Services        32,826,640   33,000,000   10.2%
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   12,129,007   12,385,440   3.8%
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   4,968,203   5,076,000   1.6%
    Total Marketing Services        17,097,210   17,461,440   5.4%
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   14,850,218   14,850,000   4.6%
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        17,850,218   17,850,000   5.5%
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 $8,209,323   8,158,925   8,142,007   2.5%
      Total Non-profit Services        8,158,925   8,142,007   2.5%
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   3,291,750   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   330,018   0.1%
    Total Office Supplies        3,700,000   3,621,768   1.1%

Company 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   17,482,760   17,314,500   5.2%
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        17,482,760   17,314,500   5.2%
Lexipol, LLC (h), (i) Public Safety/Local Government Software Series A Preferred Stock 3/30/2021  105   10,516,900   10,516,759   3.2%
      Total Public Safety/Local Government Software        10,516,900   10,516,759   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   13,883,370   14,002,800   4.3%
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   2,972,260   3,000,600   0.8%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020  1,071   1,071,301   1,268,298   0.4%
      Total Real Estate Services        17,926,931   18,271,698   5.5%
TMAC Acquisition Co., LLC Restaurant Unsecured Term Loan
8.00% PIK, 9/01/2023		 3/1/2018 $2,758,622   2,758,622   2,687,649   0.8%
      Total Restaurant        2,758,622   2,687,649   0.8%
Pepper Palace, Inc. Specialty Food Retailer First Lien Term Loan
(3M USD LIBOR+6.25%), 7.25% Cash, 6/30/2026		 6/30/2021 $34,000,000   33,662,362   33,660,000   10.3%
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        34,662,362   34,660,000   10.5%
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   25,824,985   24,715,599   7.5%
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   950,600   0.3%
      Total Sports Management        26,824,985   25,666,199   7.8%
Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014  100,000   100,000   1,281,900   0.4%
      Total Staffing Services        100,000   1,281,900   0.4%
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   19,825,000   19,826,000   6.1%
      Total Talen Acquisition Software        19,825,000   19,826,000   6.1%
National Waste Partners (d) Waste Services Second Lien Term Loan
10.00% Cash, 2/13/2022		 2/13/2017 $9,000,000   8,992,308   8,999,999   2.8%
      Total Waste Services        8,992,308   8,999,999   2.8%
Sub Total Non-control/Non-affiliate investments            525,118,034   531,442,136   163.5%
Affiliate investments - 17.3% (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 $18,700,000   18,515,545   18,513,000   5.7%
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  5,175   5,175,211   5,175,212   1.6%
      Total Consumer Services        25,190,756   25,188,212   7.8%


Company 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   5,445,000   5,445,000   1.7%
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   0.6%
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        9,445,000   9,445,000   2.9%
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   6,195,055   6,250,000   1.8%
GreyHeller LLC (f), (h) Cyber Security Series A Preferred Units 11/17/2016  850,000   850,000   8,566,173   2.6%
    Total Cyber Security        14,033,608   21,816,173   6.6%
Sub Total Affiliate investments            48,669,364   56,449,385   17.3%
Control investments - 24.1% (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 $5,382,517   5,355,321   5,414,274   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 $10,337,632   10,242,097   10,398,624   3.2%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018  4,600,677   8,344,500   17,957,123   5.5%
    Total IT Services        23,941,918   33,770,021   10.3%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities
14.22%, 4/20/2033		 1/22/2008 $111,000,000   34,504,888   35,060,814   10.8%
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%), 10.12%, 4/20/2033		 8/9/2021 $9,375,000   9,375,000   9,375,000   3.0%
      Total Structured Finance Securities        43,879,888   44,435,814   13.8%
Sub Total Control investments            67,821,806   78,205,835   24.1%
TOTAL INVESTMENTS - 204.9% (b)           $641,609,204  $666,097,356   204.9%

  Number of Shares  Cost  Fair Value  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 22.6% (b)            
U.S. Bank Money Market (l)  73,309,407  $73,309,407  $73,309,407   22.6%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  73,309,407  $73,309,407  $73,309,407   22.6%

 

(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 AugustMay 31, 20212022, non-qualifying assets represent 7.2%5.8% 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 $324,111,845$345,235,811 as of AugustMay 31, 2021.2022.

 

(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 78 to the consolidated financial statements).

 

(e)This investment does not have a stated interest rate that is payable thereon. As a result, the 14.22%5.15% 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 six monthsquarter ended AugustMay 31, 20212022 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. $25,013,000  $         -  $521,897  $          -  $         -  $(2,544) $5,940,000  $-  $880,798  $      -  $    -  $134,348 
Axero Holdings, LLC  9,445,000   -   105,875   -   -   -   1,089,000   -   169,350   -   -   433,258 
GreyHeller LLC  3,960,000   -   649,248   -   -   4,679,996 
Total $38,418,000  $-  $1,277,020  $-  $-  $4,677,452  $7,029,000  $-  $1,050,148  $-  $-  $567,606 

 

(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 six monthsquarter ended AugustMay 31, 20212022 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 $10,076,667  $-  $806,671  $-  $-  $4,240,497  $2,475,000  $-  $444,031  $-  $       -  $(657,884)
Saratoga Investment Corp. CLO 2013-1, Ltd.  -   -   2,415,144   1,632,854   -   2,952,837   -   -   592,681   815,964   -   (3,237,550)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-3 Note  -   (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   -   60,700   -   -   -   -   -   254,514   -   -   - 
Saratoga Senior Loan Fund I JV, LLC  -   -   328,125   -   -   - 
Saratoga Senior Loan Fund I JV, LLC  -   -   -   -   -   (5,371,332)
Total $27,951,667  $(26,375,000) $4,101,732  $1,632,854  $(139,867) $6,739,309  $2,475,000  $-  $1,619,351  $815,964  $-  $(9,266,766)

 

(h)Non-income producing at AugustMay 31, 2021.2022.

 

(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 AugustMay 31, 2021. (see2022. (See Note 89 to the consolidated financial statements).

 

(k)As of AugustMay 31, 2021,2022, there were no investments was on non-accrual status. (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 AugustMay 31, 2021.2022.

  

BSBY - Bloomberg Short-Term Bank Yield

LIBOR - London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

3M USD BSBY - The 3 month USD BSBY rate as of May 31, 2022 was 1.56%. 

1M USD LIBOR - The 1 month USD LIBOR rate as of AugustMay 31, 20212022 was 0.08%1.12%.

3M USD LIBOR - The 3 month USD LIBOR rate as of AugustMay 31, 20212022 was 0.12%1.63%.

Daily USD SOFR - The daily USD SOFR rate as of May 31, 2022 was 0.79%

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*2022

 

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 - 156.6% (b)                  
Targus Holdings, Inc. (d), (h) 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%
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   181,240   0.1%
My Alarm Center, LLC (h) Consumer Services Common Stock 7/14/2017  96,224   -   -   0.0%
    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%
    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%
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%
Passageways, Inc. (h) 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%
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%
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%
    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%
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%
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%
    Total Dental Practice Management Software        22,834,741   23,658,846   7.7%
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 - 187.4% (b)              
Targus Holdings, Inc. (h) Consumer Products Common Stock 12/31/2009  210,456  $1,589,630  $692,535   0.2%
    Total Consumer Products        1,589,630   692,535   0.2%
Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020  1,050   475,698   3,305,839   0.9%
    Total Corporate Education Software        475,698   3,305,839   0.9%
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   6,502,672   6,404,891   1.8%
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   2,132,639   1,997,715   0.6%
    Total Dental Practice Management        8,635,311   8,402,606   2.4%
PDDS Buyer, LLC (d) Dental Practice Management Software First Lien Term Loan
(3M USD LIBOR+5.50%), 6.00% Cash, 7/15/2024		 7/15/2019 $28,000,000   27,943,852   27,938,400   7.9%
PDDS Buyer, LLC (h) Dental Practice Management Software Series A-1 Preferred Shares 8/10/2020  1,755,831   2,000,000   7,099,940   2.0%
    Total Dental Practice Management Software      29,943,852   35,038,340   9.9%
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   18,484,747   18,220,650   5.1%
C2 Education Systems, Inc. (h) Education Services Series A-1 Preferred Stock 5/18/2021  3,127   499,904   599,296   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   15,877,908   15,794,300   4.4%
Zollege PBC (j) Education Services Delayed Draw Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 5/11/2026		 5/11/2021 $500,000   495,811   493,950   0.1%
Zollege PBC (h) Education Services Class A Units 5/11/2021  250,000   250,000   201,218   0.1%
    Total Education Services        35,608,370   35,309,414   9.9%
Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018  3,065   3,969,291   7,632,061   2.1%
Identity Automation Systems (d) Education Software First Lien Term Loan
(3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024		 8/25/2014 $16,941,250   16,941,250   16,941,250   4.8%
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014  232,616   232,616   801,923   0.2%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020  43,715   171,571   200,820   0.1%
GoReact Education Software First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/17/2020 $8,000,000   7,920,033   8,080,000   2.3%
GoReact (j) Education Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/18/2022 $-   -   -   0.0%
    Total Education Software        29,234,761   33,656,054   9.5%
TG Pressure Washing Holdings, LLC (h) Facilities Maintenance Preferred Equity 8/12/2019  488,148   488,148   482,036   0.1%
    Total Facilities Maintenance        488,148   482,036   0.1%
Davisware, LLC Field Service Management First Lien Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $6,000,000   5,954,705   6,003,000   1.7%
Davisware, LLC (j) Field Service Management Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $977,790   975,504   978,279   0.3%
    Total Field Service Management        6,930,209   6,981,279   2.0%
GDS Software Holdings, LLC Financial Services First Lien Term Loan
(3M USD LIBOR+7.00%), 8.00% Cash, 12/30/2026		 12/30/2021 $22,713,926   22,579,864   22,570,829   6.3%
GDS Software Holdings, LLC (j) Financial Services Delayed Draw Term loan
(3M USD LIBOR+7.00%), 8.00% Cash, 12/30/2026		 12/18/2021 $500,000   495,031   496,850   0.1%
GDS Software Holdings, LLC  (h) Financial Services Common Stock Class A Units 8/23/2018  250,000   250,000   472,009   0.1%
    Total Financial Services        23,324,895   23,539,688   6.5%
Ascend Software, LLC Financial Services Software First Lien Term Loan
(3M USD LIBOR+7.50%), 8.50% Cash, 12/15/2026		 12/15/2021 $6,000,000   5,942,482   5,940,000   1.7%
Ascend Software, LLC (j) Financial Services Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 8.50% Cash, 12/15/2026		 12/15/2021 $-   -   -   0.0%
    Total Financial Services Software        5,942,482   5,940,000   1.7%
Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock 1/15/2016  5,000   380,353   714,271   0.2%
    Total Healthcare Products Manufacturing        380,353   714,271   0.2%

 


Company Industry Investment Interest Rate/
Maturity		 Original
Acquisition Date		 Principal/
Number of
Shares		  Cost  Fair Value (c)  % of
Net Assets		 
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%
Texas Teachers of Tomorrow, LLC (h), (i) 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%
    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%
Destiny Solutions Inc. (h), (i) 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%
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%
Top Gun Pressure Washing, LLC 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 (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%
TG Pressure Washing Holdings, LLC (h) 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%
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%
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%
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%
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%
    Total Healthcare Services        41,188,564   42,409,701   14.0%

Company(1) Industry Investment Interest
Rate/Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018  400,000   400,000   1,032,934   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   9,974,217   10,013,000   2.8%
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   5,977,846   6,007,800   1.7%
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   24,903,581   25,000,000   7.0%
    Total Healthcare Services        41,255,644   42,053,734   11.8%
TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019  2,487   2,816,693   3,788,769   1.1%
HemaTerra Holding Company, LLC (d) Healthcare Software First Lien Term Loan
(3M USD LIBOR+8.25%), 9.25% Cash, 1/31/2026		 4/15/2019 $36,000,000   35,715,061   35,640,000   10.0%
HemaTerra Holding Company, LLC (d) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+8.25%), 9.25% Cash, 1/31/2026		 4/15/2019 $14,000,000   13,912,744   13,860,000   3.9%
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   34,827,633   34,998,550   9.8%
Procurement Partners, LLC (j) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 11/12/2025		 11/12/2020 $1,200,000   1,188,047   1,195,680   0.3%
Procurement Partners Holdings LLC (h) Healthcare Software Class A Units 11/12/2020  550,986   550,986   643,044   0.2%
    Total Healthcare Software        89,011,164   90,126,043   25.3%
Roscoe Medical, Inc. (h) Healthcare Supply Common Stock 3/26/2014  5,081   508,077   52,853   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   1.4%
    Total Healthcare Supply        5,649,490   5,194,266   1.4%
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   3,111,278   3,112,052   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   198,638   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 $15,878,989   15,878,989   10,592,873   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   5,952,460   6,021,000   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        25,099,553   19,924,563   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   27,764,146   27,977,600   7.9%
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 $2,000,000   1,980,805   1,998,400   0.6%
    Total HVAC Services and Sales        29,744,951   29,976,000   8.5%
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   8,925,938   8,920,800   2.5%
Panther ParentCo LLC (h) Insurance Software Class A Units 10/1/2021  2,000,000   2,000,000   2,000,000   0.6%
    Total Insurance Software        10,925,938   10,920,800   3.1%
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 $5,008,186   5,008,186   5,008,186   1.4%
Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015  343   -   3,418,993   1.0%
    Total Industrial Products        5,008,186   8,427,179   2.4%
LogicMonitor, Inc. (d) IT Services First Lien Term Loan
(3M USD LIBOR+5.00), 6.00% Cash, 5/17/2023		 3/20/2020 $43,000,000   42,806,801   43,000,000   12.1%
    Total IT Services        42,806,801   43,000,000   12.1%
Centerbase, LLC Legal Software First Lien Term Loan
(Daily USD SOFR+7.50%), 8.50% Cash, 1/18/2027		 1/18/2022 $7,500,000   7,409,860   7,425,000   2.1%
    Total Legal Software        7,409,860   7,425,000   2.1%
Madison Logic, Inc. Marketing Orchestration Software First Lien Term Loan
(1M USD LIBOR+5.75%), 6.75% Cash, 11/22/2026		 12/10/2021 $28,915,663   28,782,977   28,776,867   8.1%

 


Company 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  2,000,000   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%
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%
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%
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 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%
Roscoe Medical, Inc. (d), (h) 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%
    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%
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   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%

Company(1) Industry Investment Interest
Rate/Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Madison Logic, Inc. (j) Marketing Orchestration Software Revolving Credit Facility
(1M USD LIBOR+5.75%), 6.75% Cash, 11/22/2026		 12/10/2021 $-   -   -   0.0%
    Total Marketing Orchestration Software        28,782,977   28,776,867   8.1%
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   12,139,533   12,290,280   3.5%
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   4,972,992   5,037,000   1.4%
    Total Marketing Services        17,112,525   17,327,280   4.9%
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   14,861,338   14,938,500   4.2%
Chronus LLC (h) Mentoring Software Series A Preferred Stock 8/26/2021  3,000   3,000,000   3,382,625   1.0%
    Total Mentoring Software        17,861,338   18,321,125   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 $10,010,685   9,955,082   10,038,714   2.8%
    Total Non-profit Services        9,955,082   10,038,714   2.8%
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   3,278,880   0.9%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests
Expires 12/28/2022		 12/28/2012  49,318   400,000   446,927   0.1%
    Total Office Supplies        3,700,000   3,725,807   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 $17,000,000   16,990,006   17,000,000   4.7%
    Total Payroll Services        16,990,006   17,000,000   4.7%
Buildout, Inc. Real Estate Services First Lien Term Loan
(3M USD LIBOR+7.00%), 8.00% Cash, 7/9/2025		 7/9/2020 $14,000,000   13,897,546   13,904,800   3.9%
Buildout, Inc. Real Estate Services Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 8.00% Cash, 7/9/2025		 2/12/2021 $38,500,000   38,173,998   38,238,200   10.6%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020  1,205   1,205,308   1,363,014   0.4%
    Total Real Estate Services        53,276,852   53,506,014   14.9%
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   11,886,588   11,880,000   3.3%
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   999,984   0.3%
TMAC Acquisition Co., LLC Restaurant Unsecured Term Loan
8.00% PIK, 9/01/2023		 3/1/2018 $2,979,312   2,979,312   2,805,541   0.8%
    Total Restaurant        15,865,900   15,685,525   4.4%
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 $33,830,000   33,531,592   33,261,656   9.2%
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 $-   -   (33,600)  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 $-   -   (42,000)  0.0%
Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest 6/30/2021  1,000,000   1,000,000   827,050   0.1%
    Total Specialty Food Retailer        34,531,592   34,013,106   9.3%
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   25,846,091   25,667,199   7.1%

 


Company Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
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(1) Industry Investment Interest
Rate/Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair Value (c)  % of
Net Assets		 
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   999,997   987,200   0.3%
    Total Sports Management        26,846,088   26,654,399   7.4%
Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014  100,000   100,000   1,912,328   0.5%
    Total Staffing Services        100,000   1,912,328   0.5%
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   19,841,684   19,652,000   5.5%
    Total Talent Acquisition Software        19,841,684   19,652,000   5.5%
National Waste Partners (d) Waste Services Second Lien Term Loan
10.00% Cash, 11/13/2022		 2/13/2017 $9,000,000   9,000,000.0   9,000,000.0   2.5%
    Total Waste Services        9,000,000   9,000,000   2.5%
Sub Total Non-control/Non-affiliate investments        654,965,044   668,358,516   187.4%
Affiliate investments - 13.5% (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 $30,000,000   29,727,282   30,000,000   8.4%
Artemis Wax Corp. (f), (h) Consumer Services Series B-1 Preferred Stock 5/20/2021  934,463   1,500,000   2,687,573   0.8%
Artemis Wax Corp. (f), (h) Consumer Services Series C Preferred Stock 5/20/2021  5,547   5,546,609   5,546,605   1.6%
    Total Consumer Services        36,773,891   38,234,178   10.8%
Axero Holdings, LLC (f) Employee Collaboration Software First Lien Term Loan
(3M USD LIBOR+10.00%), 11.00% Cash, 6/30/2026		 6/30/2021 $5,500,000   5,451,036   5,482,950   1.5%
Axero Holdings, LLC (f), (j) Employee Collaboration Software Delayed Draw Term Loan
(3M USD LIBOR+10.00%), 11.00% Cash, 6/30/2026		 6/30/2021 $-   -   -   0.0%
Axero Holdings, LLC (f), (j) Employee Collaboration Software Revolving Credit Facility
(3M USD LIBOR+10.00%), 11.00% Cash, 6/30/2026		 2/3/2022 $-   -   -   0.0%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series A Preferred Units 6/30/2021  2,000,000   2,000,000   2,198,000   0.5%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series B Preferred Units 6/30/2021  2,000,000   2,000,000   2,318,996   0.7%
    Total Employee Collaboration Software        9,451,036   9,999,946   2.7%
Sub Total Affiliate investments        46,224,927   48,234,124   13.5%
Control investments - 28.3% (b)                  
Netreo Holdings, LLC (g) IT Services First Lien Term Loan
(3M USD LIBOR +8.00%), 9.00% Cash
12/31/2025		 7/3/2018 $5,432,440   5,409,201   5,421,575   1.4%
Netreo Holdings, LLC (d), (g), (j) IT Services Delayed Draw Term Loan
(3M USD LIBOR +8.00%), 9.00% Cash,
12/31/2025		 5/26/2020 $13,433,515   13,406,530   13,406,648   3.8%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018  4,600,677   8,344,500   18,975,523   5.3%
    Total IT Services        27,160,231   37,803,746   10.5%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities
9.27%, 4/20/2033		 1/22/2008 $111,000,000   32,273,125   28,654,905   8.1%
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   2.6%
    Total Structured Finance Securities        41,648,125   38,029,905   10.7%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Unsecured Loan
10.00%, 6/15/2023		 2/17/2022 $13,125,000   13,125,000   13,125,000   3.7%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Membership Interest 2/17/2022  13,125,000   13,125,000   12,016,064   3.4%
    Total Investment Fund        26,250,000   25,141,064   7.1%
Sub Total Control investments        95,058,356   100,974,715   28.3%
TOTAL INVESTMENTS - 229.2% (b)       $796,248,327  $817,567,355   229.2%

 


Company 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            478,588,197   476,139,943   156.6%

 


Company Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair Value (c)  % of
Net Assets		 
Affiliate investments - 4.3% (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%
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%
GreyHeller LLC (f), (h) 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%
Sub Total Affiliate investments            10,071,722   13,174,291   4.3%
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%
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%
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%
    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%
  Number of
Shares		  Cost  Fair Value  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 14.9% (b)            
U.S. Bank Money Market (k)  52,870,342  $52,870,342  $52,870,342   14.9%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  52,870,342  $52,870,342  $52,870,342   14.9%

 

  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%

*Certain reclassifications have been made to previously reported Non-control/Non-affiliate(1)Securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and Affiliate groups to show results on a consistent basis across periods.
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, 20212022, non-qualifying assets represent 9.5%6.7% 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$355,780,523 as of February 28, 2021.2022.

 

(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 78 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%9.27% 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 February 28, 2022. Transactions during the year ended February 28, 20212022 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 
GreyHeller LLC  2,227,500   -   987,969   -   -   942,175 
Artemis Wax Corp. $36,200,000  $-  $1,919,100  $                 -  $-  $1,460,287 
Axero Holdings, LLC  9,445,000   -   416,092   -   -   548,910 
GreyHeller, LLC  8,910,000   (26,428,457)  973,278   -   7,328,457   (3,102,569)
Top Gun  -   -   -   -   -   1,066,536 
Total $2,227,500  $(2,309,806) $1,160,595  $-  $(8,726,013) $8,687,403  $54,555,000  $(26,428,457) $3,308,471  $-  $7,328,457  $(26,836)

 

(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 year ended February 28, 20212022 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  $17,074,500  $-  $1,814,735  $-  $-  $5,055,909 
Saratoga Investment Corp. CLO 2013-1, Ltd.  14,000,000   -   3,535,591   2,507,626   -   (1,433,723)  -   -   4,372,958   3,262,591   -   (1,221,309)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-2 Notes  -   (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)  814,431   -   -   (454,025)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class G-R-2 Notes  -   (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 
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   -   539,564   -   -   - 
Saratoga Senior Loan Fund I JV, LLC  13,125,000   -   126,389   -   -   - 
Saratoga Senior Loan Fund I JV, LLC  13,125,000   -   -   -   -   (1,108,936)
Total $55,563,000  $(35,000,000) $6,011,638  $2,507,626  $-  $1,235,147  $61,199,500  $(26,375,000) $7,672,863  $3,262,591  $(139,867) $2,271,639 

 

(h)Non-income producing at February 28, 2021.2022.

 

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

 

(j)All or a portion of this investment has an unfunded commitment as of February 28, 2021. (see2022. (See Note 89 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, 2021.2022.

BSBY - Bloomberg Short-Term Bank Yield

LIBOR - London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

3M USD BSBY - The 3 month USD BSBY rate as of February 28, 2022 was 0.50%.

1M USD LIBOR - The 1 month USD LIBOR rate as of February 28, 20212022 was 0.12%0.24%.

3M USD LIBOR - The 3 month USD LIBOR rate as of February 28, 20212022 was 0.19%0.50%.

Daily USD SOFR - The daily USD SOFR rate as of February 28, 2022 was 0.05%

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

AugustMay 31, 20212022

(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 itsthe initial public offering (“IPO”) on March 28, 2007. The Company has elected to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under subchapterSubchapter 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-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). In February 2022, SIA-GH, Inc., SIA-TT Inc. and SIA-VR, Inc. received an approved plan of liquidation following the sale of equity held by each of the portfolio companies. Tax blockersBlockers are consolidated for accounting purposes, but are not consolidated for U.S. federal income tax purposes and may incur U.S. federal income tax expenseexpenses 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 newSBIC II LP’s SBIC license will provideprovides 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 (“TJHA”) entered into a Limited Liability Company Agreement (the “LLC Agreement”) to co-manage Saratoga Senior Loan Fund I JV LLC (“SLF JV”). SLF JV is under joint control and is not consolidated. SLF JV is invested in Saratoga Investment Corp Senior Loan Fund 2021-1 Ltd. (“SLF 2021”), which is a wholly owned subsidiary of SLF JV. SLF 2021 was formed for the purpose of making investments in a diversified portfolio of broadly syndicated first lien and second lien term loans or bonds in the primary and secondary markets.


 

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 wholly owned special purpose financing subsidiaries, Saratoga Investment Funding, LLC (previously known as GSC Investment Funding LLC), Saratoga Investment FundingSIF II, LLC, SBIC LP, SBIC II LP, SIA-Avionte, Inc., SIA-AX, Inc., SIA-GH, Inc., SIA-MAC, Inc., SIA-PEP.SIA-PEP, Inc., SIA-PP, Inc., SIA-TG, Inc., SIA-TT Inc., and 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 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“Financial Services — Investment Companies”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 AugustMay 31, 2021.2022.

 


Principles of Consolidation

Under the investment company rules and regulations pursuant to ASC Topic 946, the Company is precluded from consolidating any entity other than another investment company.

The Company has determined that SLF JV is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. SLF JV is not a wholly-owned investment company subsidiary as the Company and TJHA each have an equal 50% voting interest in SLF JV and thus neither party has a controlling financial interest. Furthermore, ASC 810 concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate its investment in SLF JV.

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 section 12(d)(1)(A) of the 1940 Act, the Company may not invest in another registered investment company, such as a money market fund, 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;shares;

 

●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 AugustMay 31, 2021,2022, 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-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:

 

 August 31,
2021		  August 31,
2020		  May 31, 2022  May 31, 2021 
Cash and cash equivalents $60,268,602  $39,052,320  $94,939,634  $317,932 
Cash and cash equivalents, reserve accounts  13,040,805   26,342,863   6,550,220   19,659,681 
Total cash and cash equivalents and cash and cash equivalents, reserve accounts $73,309,407  $65,395,183  $101,489,854  $19,977,613 

 

Investment Classification

 

The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, “Control Investments”“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”“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”“non-affiliated investments” are defined as investments that are neither Control Investmentscontrol investments nor Affiliated Investments.affiliated investments.

 


Investment Valuation

 

The Company accounts for its investments at fair value in accordance with the FASB ASC Topic 820, Fair Value MeasurementMeasurements 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 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. We use a third-party independent valuation firm to value our investment in the subordinated notes of Saratoga Investment Corp. CLO 2013-1, Ltd. (“Saratoga CLO”) and the Class F-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 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.

 

The Company’s equity investment in SLF JV is measured using the proportionate share of the net asset value, or equivalent, of SLF JV as a practical expedient for fair value, provided by ASC 820.

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 AugustMay 31, 2021, there were no investments on non-accrual status. At February 28, 2021, certain investments2022, our investment in twoone portfolio companies, including preferred equity interests, werecompany was on non-accrual status with a fair value of approximately $2.1$10.1 million, or 0.4%1.12% of the fair value of our portfolio. At February 28, 2022, there were no investments on non-accrual status.

 

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 received areDividend 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 for performing certain investment structuring and advisory activities during the closing of new investments.

 

Other Income

 

Other income includes 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 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 ourthe SBA debentures of SBIC LP and SBIC II LP are deferred and amortized using the straight-line method over the life of the debentures. Any discount or premium on the issuance of any debt is amortized using the effective interest method over the life of the respective debt security.

 

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 31and31 and (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. For the fiscal years ended February 28, 2022, 2021 and 2020, the excise tax accrual on estimated excess table income was $0.6 million, $0.7 million and $0.0 million, respectively.

 

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 electelects 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, 2021,2022, 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, 2021 and 20212022 federal tax years for the Company remain subject to examination by the IRS. As of AugustMay 31, 20212022 and February 28, 2021,2022, 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.

23

 

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 net realized capital gains net of realized and unrealized losses for the period.

 


New

Recent 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.

 


●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 AugustMay 31, 20212022 (dollars in thousands), according to the fair value hierarchy:

 

 Fair Value Measurements  Fair Value Measurements  Valued Using
Net Asset		    
 Level 1  Level 2  Level 3  Total  Level 1  Level 2  Level 3  Value*  Total 
First lien term loans $     -  $           -  $493,593  $493,593  $                -  $                -  $718,090                    -  $718,090 
Second lien term loans  -   -   44,868   44,868   -   -   38,629   -   38,629 
Unsecured term loans  -   -   2,688   2,688   -   -   15,910   -   15,910 
Structured finance securities  -   -   44,436   44,436   -   -   33,493   -   33,493 
Equity interests  -   -   80,512   80,512   -   -   81,766   6,645   88,411 
Total $-  $-  $666,097  $666,097  $-  $-  $887,888  $6,645  $894,533 

*The Company’s equity investment in SLF JV is measured using the proportionate share of the net asset value, or equivalent, as a practical expedient and thus has not been classified in the fair value hierarchy.

 

The following table presents fair value measurements of investments, by major class, as of February 28, 20212022 (dollars in thousands), according to the fair value hierarchy:

 

 Fair Value Measurements  Fair Value Measurements  Valued Using
Net Asset		    
 Level 1  Level 2  Level 3  Total  Level 1  Level 2  Level 3  Value*  Total 
First lien term loans $       -  $       -  $440,456  $440,456  $-  $-  $631,572  $-  $631,572 
Second lien term loans  -   -   24,930   24,930   -   -   44,386   -   44,386 
Unsecured term loans  -   -   2,141   2,141 
Unsecured loans  -   -   15,931   -   15,931 
Structured finance securities  -   -   49,779   49,779   -   -   38,030   -   38,030 
Equity interests  -   -   37,007   37,007   -   -   75,632   12,016   87,648 
Total $-  $-  $554,313  $554,313 $-  $-  $805,551  $12,016  $817,567 

 


*The Company’s equity investment in SLF JV is measured using the proportionate share of the net asset value, or equivalent, as a practical expedient and thus has not been classified in the fair value hierarchy.

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the sixthree months ended AugustMay 31, 20212022 (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 28, 2021 $440,456  $24,930  $2,141  $49,779  $37,007  $554,313 
Balance as of February 28, 2022 $631,572  $44,386  $15,931  $38,030  $75,632  $805,551 
Payment-in-kind and other adjustments to cost  389   30   498   658   331   1,906   (221)  -   -   (1,300)  199   (1,322)
Net accretion of discount on investments  874   10   -   -   -   884   344   6   -   -   -   350 
Net change in unrealized appreciation (depreciation) on investments  285   73   49   2,499   17,283   20,189   (4,707)  (622)  (21)  (3,237)  4,623   (3,964)
Purchases  173,018   19,825   -   -   42,338   235,181   95,886   -   -   -   1,312   97,198 
Sales and repayments  (121,429)  -   -   (8,360)  (19,998)  (149,787)  (4,947)  (5,141)  -   -   -   (10,088)
Net realized gain (loss) from investments  -   -   -   (140)  3,551   3,411   163   -   -   -   -   163 
Balance as of August 31, 2021 $493,593  $44,868  $2,688  $44,436  $80,512  $666,097 
Balance as of May 31, 2022 $718,090  $38,629  $15,910  $33,493  $81,766  $887,888 
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 $1,790  $73  $49  $2,952  $16,605  $21,469  $(4,869) $(616) $(20) $(3,239) $4,623  $(4,121)


 

Purchases, payment-in-kindPIK 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 restructuresrestructurings in or out of Levels 1, 2 or 3 during the sixthree months ended AugustMay 31, 2021.2022.

 

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the sixthree months ended AugustMay 31, 20202021 (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 
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  408   943   -   (2,197)  -   (846)  231   -   -   (435)  396   192 
Net accretion of discount on investments  431   175   -   -   -   606   314   7   -   -   -   321 
Net change in unrealized appreciation (depreciation) on investments  (12,446)  (1,393)  (324)  823   (2,030)  (15,370)  497   485   28   4,077   11,725   16,812 
Purchases  64,899   -   2,500   -   3,309   70,708   87,321   -   -   -   31,845   119,166 
Sales and repayments  (9,633)  (23,000)  -   -   -   (32,633)  (12,665)  -   -   -   (2,276)  (14,941)
Net realized gain (loss) from investments  20   -   -   -   -   20   -   -   -   -   1,910   1,910 
Balance as of August 31, 2020 $389,912  $50,295  $6,522  $31,096  $30,292  $508,117 
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 year relating to those Level 3 assets that were still held by the Company at the end of the period $(12,211) $(1,345) $(324) $822  $(2,028) $(15,086) $838  $485  $28  $4,076  $13,568  $18,995 

 

Transfers and restructurings, if any, are recognized at the beginning of the period in which they occur. There were no transfers or restructuresrestructurings in or out of Levels 1, 2 or 3 during the sixthree months ended AugustMay 31, 2020.2021.

 


The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of AugustMay 31, 20212022 were as follows (dollars in thousands):

 

  Fair Value  Valuation Technique Unobservable Input Range  Weighted Average* 
First lien term loans $493,593  Market Comparables Market Yield (%)  6.0% - 18.7%   9.2% 
        EBITDA Multiples (x)  6.5x   6.5x 
        Revenue Multiples (x)  3.5x - 6.7x   5.8x 
Second lien term loans  44,868  Market Comparables Market Yield (%)  8.7% - 28.0%   19.9% 
        EBITDA Multiples (x)  7.5x   7.5x 
Unsecured term loans  2,688  Market Comparables Market Yield (%)  16.7%   16.7% 
Structured finance securities  44,436  Discounted Cash Flow Discount Rate (%)  10.0% - 15.0%   14.3% 
        Recovery Rate (%)  35% - 70%   70.0% 
        Prepayment Rate (%)  20.0%   20.0% 
Equity interests  80,512  Enterprise Value Waterfall EBITDA Multiples (x)  3.3x - 20.0x   13.0x 
        Revenue Multiples (x)  1.0x - 11.7x   6.5x 
Total $666,097             

  Fair Value  Valuation
Technique		 Unobservable Input Range Weighted
Average*
First lien term loans $718,090  Market Comparables Market Yield (%)  6.6% - 12.5%   8.9%
        Revenue Multiples (x)  3.5x  3.5x
Second lien term loans  38,629  Market Comparables Market Yield (%)  9.7% - 38.7%   17.4%
Unsecured term loans  15,910  Market Comparables Market Yield (%)  10.0% - 26.0%   12.8%
      Collateral Value Coverage Net Asset Value 100.0% 100.0%
Structured finance securities  33,493  Discounted Cash Flow Discount Rate (%)  10.0% - 16.0%   14.8%
        Recovery Rate (%)  35% - 70%   70.0%
        Prepayment Rate (%) 20.0% 20.0%
Equity interests  81,766  Enterprise Value Waterfall EBITDA Multiples (x)  4.0x - 28.6x    9.3x
        Revenue Multiples (x)  1.0x - 14.5x    7.2x
        Third-party bid 100.0% 100.0%
Total $887,888         

 

*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, 20212022 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%  $631,572  Market Comparables Market Yield (%) 6.0% - 11.3% 8.4%
       EBITDA Multiples (x)  6.8x   6.8x 
       Revenue Multiples (x)  4.1x - 8.0x   7.5x       Revenue Multiples (x) 3.5x 3.5x
Second lien term loans  24,930  Market Comparables Market Yield (%)  10.0% - 24.5%   16.5%   44,386  Market Comparables Market Yield (%) 8.9% - 32.9% 15.6%
       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%   15,931  Market Comparables Market Yield (%) 22.3% 22.3%
       EBITDA Multiples (x)  5.2x   5.2x       Net Asset Value 100.0% 100.0%
Structured finance securities  49,779  Discounted Cash Flow Discount Rate (%)  10.0% - 15.00%   13.8%   38,030  Discounted Cash Flow Discount Rate (%) 10.0% - 15.0% 14.2%
       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   75,632  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
      Third-party bid 100.0% 100.0%
Total $554,313              $805,551      

 

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

 

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 third-party bid or market quote in deriving a value, a significant increase (decrease) in the third-party bid or market quote, in isolation, would result in a significantly higher (lower) fair value measurement.

 

The composition of our investments as of AugustMay 31, 20212022 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 $494,441   77.1% $493,593   74.1% $722,260   81.8% $718,090   80.3%
Second lien term loans  49,757   7.8   44,868   6.7   44,727   5.1   38,629   4.3 
Unsecured term loans  2,759   0.4   2,688   0.4   16,104   1.8   15,910   1.8 
Structured finance securities  43,880   6.8   44,436   6.7   40,349   4.6   33,493   3.7 
Equity interests  50,772   7.9   80,512   12.1   59,108   6.7   88,411   9.9 
Total $641,609   100.0% $666,097   100.0% $882,548   100.0% $894,533   100.0%

 


The composition of our investments as of February 28, 20212022 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 $441,590   80.3% $440,456   79.5% $631,037   79.3% $631,572   77.3%
Second lien term loans  29,891   5.4   24,930   4.4   49,862   6.3   44,386   5.4 
Unsecured term loans  2,261   0.4   2,141   0.4   16,104   2.0   15,931   1.9 
Structured finance securities  51,722   9.4   49,779   9.0   41,648   5.2   38,030   4.7 
Equity interests  24,550   4.5   37,007   6.7   57,597   7.2   87,648   10.7 
Total $550,014   100.0% $554,313   100.0% $796,248   100.0% $817,567   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, weWe 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 AugustMay 31, 2021.2022. The inputs at AugustMay 31, 20212022 for the valuation model include:

 

●Default rate: 2%

 

●Recovery rate: 35% -70%

 

●Discount rate: 10% – 15%16%

 

●Prepayment rate: 20%

 

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

28

 

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 AugustMay 31, 2021.2022.

 

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.

Buildout, Inc.

Buildout, Inc. (“Buildout”) provides SaaS-based real estate marketing and customer relationship management (“CRM”) software to commercial real estate (“CRE”) brokerages. Buildout provides a suite of software solutions brokers use to manage relationships, efficiently create and distribute marketing materials over a wide variety of channels, including direct mail, multiple listing websites, brokerage website, property specific websites and manage back office functions like commission calculations and broker productivity.

 

Saratoga Investment Corp. CLO 2013-1, Ltd.PDDS Buyer, LLC

The Company hasPDDS Buyer, LLC (“PDDS”) provides SaaS-based dental practice management software for individual practices and dental groups.  PDDS offers key operational tools for a collateraldental practice, including appointment scheduling, patient and clinical data intake and 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 notepatient communications, billing and Class F-2-R-3 Notes of the Saratoga CLO.claims management, insurance verification and key performance indicator reporting.


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 in 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 in 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 fourth Saratoga CLO refinancing,  among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. AThe non-call period endingwas extended to February 2022 was also added.2022. 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 ofAt August 31, 2021, the 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 $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 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 AugustMay 31, 20212022 and AugustMay 31, 2020,2021, we accrued management fee income of $0.8 million and $0.6$0.8 million, respectively, and interest income of $1.3$0.6 million and $0.7$1.1 million, respectively, from the subordinated notes of Saratoga CLO.

 

For the six months ended August 31, 2021 and August 31, 2020, we accrued management fee income of $1.6 million and $1.3 million, respectively, and interest income of $2.4 million and $1.4 million, respectively, from the subordinated notes of the Saratoga CLO.


 


As of AugustMay 31, 2021,2022, the aggregate principal amounts of the Company’s investments in the subordinated notes and Class F-2-R-3 Notes of the Saratoga CLO was $111.0 million and $9.4 million, respectively, which had a corresponding fair value of $35.1$24.1 million and $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 AugustMay 31, 2021,2022, Saratoga CLO had investments with a principal balance of $658.7$647.3 million and a weighted average spread over LIBOR of 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 AugustMay 31, 2021,2022, the present value of the projected future cash flows of the subordinated notes was approximately $35.6$31.1 million, using a 15.0%16.0% 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$74.8 million, management fees of $27.0$29.4 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, 2021,2022, the Company determined that the fair value of its investment in the subordinated notes of Saratoga CLO was $31.4$28.7 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, 2021,2022, the fair value of its investment in the Class F-R-3 Notes was $18.3 million,$9.4 million. As of February 28, 2021,2022, Saratoga CLO had investments with a principal balance of $603.7$660.2 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 February 28, 2021,2022, the present value of the projected future cash flows of the subordinated notes was approximately $31.7$27.9 million, using a 15.0% discount rate.

 

Below is certain financial information from the separate financial statements of Saratoga CLO as of AugustMay 31, 20212022 (unaudited) and February 28, 20212022 and for the three and six months ended AugustMay 31, 20212022 (unaudited) and AugustMay 31, 20202021 (unaudited).

 


28

Saratoga Investment Corp. CLO 2013-1, Ltd.

Statements of Assets and Liabilities

 

  August 31,
2021		  February 28,
2021		 
  (unaudited)    
ASSETS      
Investments at fair value      
Loans at fair value (amortized cost of $650,634,393 and $594,722,350, respectively) $646,261,753  $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 $650,634,393 and $595,249,474, respectively)  646,261,753   592,020,041 
Cash and cash equivalents  11,897,501   114,145,406 
Receivable from open trades  8,802,545   1,901,754 
Interest receivable (net of reserve of $38,766 and $35,000, respectively)  1,987,100   1,497,333 
Prepaid expenses and other assets  37,581   118,868 
Total assets $668,986,480  $709,683,402 
         
LIABILITIES        
Interest payable $1,695,146  $124,233 
Payable from open trades  22,634,199   66,298,568 
Accrued base management fee  72,876   6,930 
Accrued subordinated management fee  291,500   27,715 
Accounts payable and accrued expenses  69,769   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  (280,236)  (292,368)
Class E-R-3 Deferrable Mezzanine Floating Rate Notes  27,625,000   27,625,000 
Discount on Class E-R-3 Notes  (2,911,336)  (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  (2,181,854)  (2,276,780)
Subordinated Notes  111,000,000   111,000,000 
Discount on Subordinated Notes  (46,045,896)  (48,039,412)
Total liabilities $695,344,168  $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)  (26,357,938)  (28,538,114)
Total net assets  (26,357,688)  (28,537,864)
Total liabilities and net assets $668,986,480  $709,683,402 

See accompanying notes to financial statements.


Saratoga Investment Corp. CLO 2013-1, Ltd.

Statements of Operations

(unaudited)

  For the three months ended  For the six months ended 
  August 31,
2021		  August 31,
2020		  August 31,
2021		  August 31,
2020		 
INVESTMENT INCOME            
Total interest from investments $7,866,198  $6,437,801   15,613,938   13,651,290 
Interest from cash and cash equivalents  119   214   691   3,501 
Other income  200,320   184,969   517,377   294,610 
Total investment income  8,066,637   6,622,984   16,132,006   13,949,401 
EXPENSES                
Interest and debt financing expenses  5,569,557   5,769,357   10,405,734   13,057,925 
Base management fee  162,925   126,481   326,571   252,002 
Subordinated management fee  651,697   505,921   1,306,283   1,008,006 
Professional fees  109,691   94,782   145,357   183,272 
Trustee expenses  121,329   53,876   121,329   105,734 
Other expense  54,156   12,228   113,939   40,280 
Total expenses  6,669,355   6,562,645   12,419,213   14,647,219 
NET INVESTMENT INCOME (LOSS)  1,397,282   60,339   3,712,793   (697,818)
                 
REALIZED AND UNREALIZED LOSS ON INVESTMENTS                
Net realized loss from investments  175,669   (4,338,586)  (389,425)  (6,142,470)
Net change in unrealized depreciation on investments  (662,095)  26,457,779   (1,143,192)  (5,117,650)
Net realized and unrealized gain (loss) on investments  (486,426)  22,119,193   (1,532,617)  (11,260,120)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $910,856  $22,179,532  $2,180,176  $(11,957,938)
  May 31,
2022		  February 28,
2022		 
  (unaudited)    
ASSETS      
Investments at fair value      
Loans at fair value (amortized cost of $639,686,300 and $653,022,265, respectively) $600,926,629  $638,929,660 
Equities at fair value  (amortized cost of $0 and $0, respectively)  -   33,690 
Total investments at fair value (amortized cost of $639,686,300 and $653,022,265, respectively)  600,926,629   638,963,350 
Cash and cash equivalents  8,708,940   6,171,793 
Receivable from open trades  13,192,335   9,152,660 
Interest receivable (net of reserve of $0 and $0, respectively)  2,291,057   2,062,856 
Prepaid expenses and other assets  79,738   100,067 
Total assets $625,198,699  $656,450,726 
         
LIABILITIES        
Interest payable $2,299,914  $1,659,776 
Payable from open trades  10,680,082   18,794,627 
Accrued base management fee  72,555   72,510 
Accrued subordinated management fee  290,222   290,040 
Accounts payable and accrued expenses  58,615   58,716 
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  (262,235)  (268,301)
Class E-R-3 Deferrable Mezzanine Floating Rate Notes  27,625,000   27,625,000 
Discount on Class E-R-3 Notes  (2,724,326)  (2,787,348)
Class F-1-R-3 Notes Deferrable Junior Floating Rate Notes  8,500,000   8,500,000 
Class F-2-R-3 Notes Deferrable Junior Floating Rate Notes  9,375,000   9,375,000 
Deferred debt financing costs  (2,039,465)  (2,086,928)
Subordinated Notes  111,000,000   111,000,000 
Discount on Subordinated Notes  (43,088,124)  (44,084,883)
Total liabilities $687,287,238  $693,648,209 
         
Commitments and contingencies        
         
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)  (62,088,789)  (37,197,733)
Total net assets  (62,088,539)  (37,197,483)
Total liabilities and net assets $625,198,699  $656,450,726 

 

See accompanying notes to financial statements.

 

3229

 

Saratoga Investment Corp. CLOCLO 2013-1, Ltd.

ScheduleStatements of InvestmentsOperations

August 31, 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 $2,049,649  $2,038,765   1,969,589 
ADMI Corp. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.83% 4/30/2025  1,940,276   1,934,594   1,901,742 
Adtalem Global Education Inc. Services: Business First Lien Loan  1M USD LIBOR+  4.50%  0.75%  5.25% 2/12/2028  2,000,000   1,980,113   2,001,500 
Aegis Sciences Corporation Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  5.50%  1.00%  6.50% 5/9/2025  3,169,960   3,152,537   3,059,012 
Agiliti Health Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.88% 1/4/2026  488,750   488,750   485,392 
Agiliti Health Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  2.75%  0.75%  3.50% 1/4/2026  384,464   381,210   382,542 
AHEAD DB Holdings, LLC Services: Business First Lien Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 10/18/2027  3,000,000   2,892,517   3,004,830 
AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense First Lien Loan  6M USD LIBOR+  3.50%  1.00%  4.50% 1/18/2027  1,477,269   1,471,586   1,476,043 
AIS HoldCo, LLC Services: Business First Lien Loan  3M USD LIBOR+  5.00%  0.00%  5.13% 8/15/2025  5,177,380   5,032,236   5,073,832 
Alchemy Copyrights, LLC Media: Diversified & Production First Lien Loan  1M USD LIBOR+  3.00%  0.50%  3.50% 3/10/2028  496,256   493,056   495,016 
Alchemy US Holdco 1, LLC Metals & Mining First Lien Loan  1M USD LIBOR+  5.50%  0.00%  5.58% 10/10/2025  1,654,803   1,638,753   1,638,255 
AlixPartners, LLP Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 2/4/2028  249,375   248,779   247,781 
Alkermes, Inc. Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  2.50%  0.50%  3.00% 3/12/2026  498,750   497,607   496,256 
Allen Media, LLC(a) Media: Diversified & Production First Lien Loan  3M USD LIBOR+  5.50%  0.00%  0.00% 2/10/2027  -   (7,143)  (8,571)
Allen Media, LLC Media: Diversified & Production First Lien Loan  3M USD LIBOR+  5.50%  0.00%  5.68% 2/10/2027  785,714   777,857   776,286 
Allen Media, LLC Media: Diversified & Production First Lien Loan  2M USD LIBOR+  5.50%  0.00%  5.65% 2/10/2027  2,962,027   2,950,747   2,926,483 
Alliant Holdings I, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.75%  0.50%  4.25% 11/6/2027  498,950   498,280   498,891 
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   1,219,309   1,016,107 
Altium Packaging LLC Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 1/29/2028  498,750   496,360   494,386 
Altra Industrial Motion Corp. Capital Equipment First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.08% 10/1/2025  1,388,059   1,385,957   1,374,525 
American Greetings Corporation Media: Advertising, Printing & Publishing First Lien Loan  1M USD LIBOR+  4.50%  1.00%  5.50% 4/6/2024  3,578,958   3,576,900   3,582,537 
AmeriLife Holdings LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.10% 3/18/2027  1,485,160   1,477,210   1,477,734 
AmWINS Group, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.25%  0.75%  3.00% 2/17/2028  1,990,000   1,965,359   1,969,821 

  For the three months ended 
  May 31,
2022		  May 31,
2021		 
INVESTMENT INCOME      
Total interest from investments  8,145,447   7,747,740 
Interest from cash and cash equivalents  -   572 
Other income  103,496   317,057 
Total investment income  8,248,943   8,065,369 
         
EXPENSES        
Interest and debt financing expenses  7,532,364   4,836,177 
Base management fee  163,193   163,646 
Subordinated management fee  652,771   654,586 
Professional fees  81,164   35,666 
Trustee expenses  68,086   - 
Other expense  38,089   59,783 
Total expenses  8,535,667   5,749,858 
NET INVESTMENT INCOME (LOSS)  (286,724)  2,315,511 
         
REALIZED AND UNREALIZED LOSS ON INVESTMENTS        
Net realized gain (loss) from investments  77,657   (565,094)
Net change in unrealized appreciation (depreciation) on investments  (24,681,988)  (481,097)
Net realized and unrealized gain (loss) on investments  (24,604,331)  (1,046,191)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $(24,891,055) $1,269,320 

See accompanying notes to financial statements.

 


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 First Lien Loan  3M USD LIBOR+  3.75%  0.00%  3.90% 8/11/2025  972,500   969,575   802,313 
Anchor Glass Container Corporation Containers, Packaging & Glass First Lien Loan  3M USD LIBOR+  2.75%  1.00%  3.75% 12/7/2023  477,600   476,664   439,855 
Anchor Packaging, LLC Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.09% 7/18/2026  992,405   983,623   987,443 
ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  6.00%  0.75%  6.75% 5/24/2027  3,000,000   2,940,000   3,000,000 
AP Core Holdings II LLC High Tech Industries First Lien Loan  3M USD LIBOR+  5.50%  0.75%  6.25% 7/21/2027  2,000,000   1,970,000   1,980,840 
AP Core Holdings II LLC High Tech Industries First Lien Loan  3M USD LIBOR+  5.50%  0.75%  6.25% 7/21/2027  500,000   492,500   495,000 
APi Group DE, Inc. (J2 Acquisition) Services: Business First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 10/1/2026  950,000   946,347   940,206 
APLP Holdings Limited Partnership Energy: Electricity First Lien Loan  1M USD LIBOR+  3.75%  1.00%  4.75% 5/14/2027  986,486   977,051   987,720 
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  2,984,772   2,948,354   2,932,538 
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  997,500   987,973   990,019 
AppLovin Corporation High Tech Industries First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.33% 8/15/2025  994,898   994,898   991,167 
Aramark Corporation Services: Consumer First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.83% 1/15/2027  2,468,750   2,395,893   2,416,289 
Aramark Corporation Services: Consumer First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 4/1/2028  1,995,000   1,985,419   1,981,035 
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   3,338,966   3,182,212 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  4.25%  0.00%  4.33% 10/1/2025  2,448,721   2,442,363   2,430,356 
ARISTOCRAT LEISURE LIMITED Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  3.75%  1.00%  4.75% 10/19/2024  990,000   975,506   990,495 
Asplundh Tree Expert, LLC Services: Business First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.83% 9/7/2027  992,500   988,177   985,215 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 2/12/2027  1,000,000   1,000,000   997,500 
Asurion, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.13%  0.00%  3.21% 11/3/2023  282,351   281,316   279,233 
Asurion, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.33% 12/18/2026  3,010,239   2,998,091   2,950,515 
Avast Software S.R.O. (Sybil Finance) High Tech Industries First Lien Loan  3M USD LIBOR+  2.00%  0.00%  2.15% 3/12/2028  1,975,000   1,970,229   1,969,450 
Avaya, Inc. Telecommunications First Lien Loan  1M USD LIBOR+  4.25%  0.00%  4.35% 12/15/2027  1,755,766   1,746,665   1,756,714 

Saratoga Investment Corp. CLO 2013-1, Ltd.

Schedule of Investments

May 31, 2022

(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 
19TH HOLDINGS GOLF, LLC Consumer goods: Durable Term Loan Loan  1M USD SOFR+  3.25%  0.50%  4.15% 2/7/2029 $500,000  $497,675  $470,000 
ADMI Corp. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+  2.75%  0.00%  3.81% 4/30/2025  1,925,276   1,920,809   1,822,485 
Adtalem Global Education Inc. Services: Business Term Loan B (02/21) Loan  1M USD LIBOR+  4.50%  0.75%  5.43% 8/11/2028  1,033,969   1,024,867   1,004,893 
Aegis Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  5.50%  1.00%  6.90% 5/9/2025  2,589,295   2,578,245   2,521,974 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (1/19) Loan  1M USD LIBOR+  2.75%  0.00%  3.56% 1/4/2026  1,479,872   1,473,569   1,435,476 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (09/20) Loan  1M USD LIBOR+  2.75%  0.75%  3.56% 1/4/2026  285,714   283,708   276,429 
AHEAD DB Holdings, LLC Services: Business Term Loan (04/21) Loan  3M USD LIBOR+  3.75%  0.75%  4.76% 10/18/2027  2,977,500   2,882,231   2,841,398 
AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense Term Loan B (USD) Loan  6M USD LIBOR+  3.50%  1.00%  5.05% 1/18/2027  1,465,871   1,461,152   1,418,758 
AIS HoldCo, LLC Services: Business Term Loan Loan  3M USD LIBOR+  5.00%  0.00%  6.24% 8/15/2025  4,789,642   4,678,674   4,669,901 
Alchemy Copyrights, LLC Media: Diversified & Production Term Loan B Loan  1M USD LIBOR+  3.00%  0.50%  3.80% 3/10/2028  492,516   489,734   477,740 
Alchemy US Holdco 1, LLC Metals & Mining Term Loan Loan  1M USD LIBOR+  5.50%  0.00%  5.60% 10/10/2025  1,654,803   1,641,577   1,616,197 
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  247,500   246,999   238,080 
Alkermes, Inc. Healthcare & Pharmaceuticals Term Loan B (3/21) Loan  3M USD LIBOR+  2.50%  0.50%  3.00% 3/12/2026  2,142,449   2,126,347   2,067,463 
Allen Media, LLC Media: Diversified & Production Term Loan (7/21) Loan  3M USD SOFR+  5.50%  0.00%  6.30% 2/10/2027  4,428,156   4,398,416   4,187,928 
Alliant Holdings Intermediate, LLC Banking, Finance, Insurance & Real Estate Term Loan B4 Loan  1M USD LIBOR+  3.50%  0.50%  4.37% 11/5/2027  995,000   994,019   957,508 
Allied Universal Holdco LLC Services: Business Term Loan 4/21 Loan  1M USD LIBOR+  3.75%  0.50%  4.81% 5/12/2028  1,990,000   1,980,933   1,878,063 
Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate Term Loan B (03/18) Loan  3M USD LIBOR+  4.00%  1.00%  5.01% 4/3/2024  1,223,297   1,220,514   1,038,579 
Altium Packaging LLC Containers, Packaging & Glass Term Loan (01/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.81% 1/29/2028  495,000   492,916   464,374 
American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan Loan  1M USD LIBOR+  4.50%  1.00%  5.56% 4/6/2024  3,012,861   3,011,417   2,962,637 
American Trailer World Corp Automotive Term Loan Loan  1M USD SOFR+  3.50%  0.75%  4.63% 3/3/2028  1,985,000   1,979,933   1,773,161 

 


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+  4.00%  0.00%  4.10% 12/15/2027  1,000,000   1,000,000   1,000,140 
Avison Young (Canada) Inc Services: Business First Lien Loan  3M USD LIBOR+  6.00%  0.00%  6.12% 1/31/2026  3,423,552   3,383,416   3,375,040 
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   884,597   993,850 
Avolon TLB Borrower 1 (US) LLC Capital Equipment First Lien Loan  1M USD LIBOR+  2.25%  0.50%  2.75% 12/1/2027  497,500   492,997   497,112 
B&G Foods, Inc. Beverage, Food & Tobacco First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.58% 10/10/2026  706,458   701,247   705,575 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.83% 11/19/2026  1,477,500   1,443,206   1,451,023 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 10/14/2027  1,245,000   1,231,069   1,239,559 
BALL METALPACK, LLC (PE Spray) Containers, Packaging & Glass First Lien Loan  3M USD LIBOR+  4.50%  0.00%  4.62% 7/25/2025  3,884,862   3,873,359   3,854,521 
Bass Pro Group, LLC Retail First Lien Loan  6M USD LIBOR+  4.25%  0.75%  5.00% 3/6/2028  995,000   990,164   998,313 
Belfor Holdings Inc. Services: Consumer First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.08% 4/6/2026  249,364   249,074   249,052 
Belron Finance US LLC Automotive First Lien Loan  3M USD LIBOR+  2.75%  0.50%  3.25% 4/13/2028  1,995,000   1,975,906   1,992,506 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.34% 4/23/2026  994,937   988,200   982,500 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 4/23/2026  1,487,509   1,477,399   1,478,212 
Blount International, Inc. Forest Products & Paper First Lien Loan  1M USD LIBOR+  3.75%  1.00%  4.75% 4/12/2023  1,401,319   1,403,478   1,400,814 
Blucora, Inc. Services: Consumer First Lien Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 5/22/2024  2,447,283   2,440,931   2,450,342 
Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber First Lien Loan  3M USD LIBOR+  2.50%  0.00%  2.65% 3/4/2028  997,500   995,152   987,525 
Bombardier Recreational Products, Inc. Consumer goods: Durable First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.09% 5/24/2027  1,477,550   1,467,547   1,461,297 
Boxer Parent Company, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  3.75%  0.00%  3.83% 10/2/2025  525,872   525,872   522,201 
Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  4.25%  0.00%  4.39% 9/5/2025  972,500   969,591   966,422 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.60% 3/5/2026  997,500   997,500   991,405 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.00%  0.00%  3.08% 1/22/2027  2,994,268   2,988,243   2,949,025 
Brookfield WEC Holdings Inc. Energy: Electricity First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 8/1/2025  1,485,000   1,487,451   1,471,769 

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 
AmeriLife Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  4.00%  0.00%  4.80% 3/18/2027  1,971,412   1,962,517   1,886,799 
AmWINS Group, LLC Banking, Finance, Insurance & Real Estate Term Loan 2/21 Loan  1M USD LIBOR+  2.25%  0.75%  3.31% 2/17/2028  1,975,009   1,953,272   1,892,651 
Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan  3M USD LIBOR+  3.75%  0.00%  4.76% 8/11/2025  965,000   962,664   800,110 
Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan  3M USD LIBOR+  2.75%  1.00%  3.75% 12/7/2023  473,869   473,269   391,240 
Anchor Packaging, LLC Containers, Packaging & Glass Term Loan B Loan  1M USD LIBOR+  4.00%  0.00%  5.06% 7/18/2026  984,810   977,385   942,956 
ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+  6.00%  0.75%  7.06% 11/19/2027  2,992,500   2,938,549   2,877,797 
AP Core Holdings II LLC High Tech Industries Term Loan B1 Loan  1M USD LIBOR+  5.50%  0.75%  6.56% 9/1/2027  1,950,000   1,924,082   1,842,750 
AP Core Holdings II LLC High Tech Industries Term Loan B2 Loan  1M USD LIBOR+  5.50%  0.75%  6.56% 9/1/2027  500,000   493,364   476,250 
APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan  1M USD LIBOR+  2.50%  0.00%  3.56% 10/1/2026  1,928,237   1,920,979   1,879,221 
APLP Holdings Limited Partnership Energy: Electricity Term Loan B (3/21) Loan  3M USD LIBOR+  3.75%  1.00%  4.76% 5/14/2027  623,805   618,576   606,650 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  2.75%  0.00%  3.81% 5/15/2026  2,961,929   2,931,234   2,754,594 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 (2/21) Loan  1M USD LIBOR+  3.50%  0.50%  4.46% 3/6/2028  990,000   981,591   920,700 
AppLovin Corporation High Tech Industries Term Loan B Loan  1M USD LIBOR+  3.25%  0.00%  4.31% 8/15/2025  987,245   987,245   966,266 
AppLovin Corporation High Tech Industries Term Loan (10/21) Loan  1M USD LIBOR+  3.00%  0.50%  4.06% 10/21/2028  1,496,250   1,492,919   1,451,363 
Aramark Corporation Services: Consumer Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  2.81% 1/15/2027  2,331,250   2,271,606   2,244,807 
Aramark Corporation Services: Consumer Term Loan B (4/21) Loan  1M USD LIBOR+  2.50%  0.00%  3.56% 4/1/2028  1,753,715   1,746,266   1,708,785 
ARC FALCON I INC. Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+  3.75%  0.50%  4.81% 9/23/2028  870,430   866,504   817,116 
ARC FALCON I INC. (a) Chemicals, Plastics, & Rubber Delayed Draw Term Loan Loan  N/A  1.00%  0.50%  1.00% 9/29/2028  -   (578)  (7,803)
Arches Buyer Inc. Services: Consumer Term Loan B Loan  1M USD LIBOR+  3.25%  0.50%  4.31% 12/6/2027  1,484,848   1,475,790   1,393,902 
Arctic Glacier U.S.A., Inc. Beverage, Food & Tobacco Term Loan (3/18) Loan  3M USD LIBOR+  3.50%  1.00%  4.51% 3/20/2024  3,350,967   3,342,566   2,884,613 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan  1M USD LIBOR+  4.25%  0.00%  5.31% 10/1/2025  1,931,174   1,926,851   1,850,064 
ASP BLADE HOLDINGS, INC. Capital Equipment Term Loan Loan  1M USD LIBOR+  4.00%  0.50%  5.06% 10/7/2028  99,765   99,314   94,590 
Asplundh Tree Expert, LLC Services: Business Term Loan 2/21 Loan  1M USD LIBOR+  1.75%  0.00%  2.81% 9/7/2027  985,000   981,250   957,302 

 


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
Buckeye Partners, L.P. Utilities: Oil & Gas First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.35% 11/1/2026  1,980,038   1,966,762   1,957,148 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 3/31/2028  2,500,000   2,476,121   2,487,500 
Cable & Wireless Communications Limited Telecommunications First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.33% 1/31/2028  4,000,000   3,985,723   3,957,520 
Callaway Golf Company Retail First Lien Loan  1M USD LIBOR+  4.50%  0.00%  4.59% 1/4/2026  686,250   676,663   687,966 
CareerBuilder, LLC Services: Business First Lien Loan  3M USD LIBOR+  6.75%  1.00%  7.75% 7/31/2023  5,393,388   5,200,819   5,029,334 
CareStream Health, Inc. Healthcare & Pharmaceuticals First Lien Loan  6M USD LIBOR+  6.75%  1.00%  7.75% 5/8/2023  2,236,938   2,233,676   2,245,326 
Casa Systems, Inc Telecommunications First Lien Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 12/20/2023  1,398,625   1,393,530   1,389,450 
Castle US Holding Corporation Media: Advertising, Printing & Publishing First Lien Loan  3M USD LIBOR+  3.75%  0.00%  3.90% 1/27/2027  1,988,502   1,976,281   1,959,232 
CBI BUYER, INC. Consumer goods: Durable First Lien Loan  2M USD LIBOR+  3.25%  0.50%  3.75% 1/6/2028  1,000,000   997,848   993,130 
CCI Buyer, Inc Telecommunications First Lien Loan  3M USD LIBOR+  4.00%  0.75%  4.75% 12/17/2027  249,375   247,104   249,844 
CCRR Parent, Inc. Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  4.25%  0.75%  5.00% 3/5/2028  997,500   992,638   1,001,241 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  5.50%  0.00%  5.58% 9/25/2025  2,437,500   2,421,781   2,384,679 
Cengage Learning, Inc. Media: Advertising, Printing & Publishing First Lien Loan  6M USD LIBOR+  4.75%  1.00%  5.75% 6/29/2026  3,000,000   2,970,549   3,006,660 
CENTURI GROUP, INC. Construction & Building First Lien Loan  3M USD LIBOR+  2.50%  0.50%  3.00% 8/18/2028  1,000,000   990,000   995,830 
CenturyLink, Inc. Telecommunications First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.33% 3/15/2027  3,949,950   3,943,833   3,898,916 
Chemours Company, (The) Chemicals, Plastics, & Rubber First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 4/3/2025  984,673   940,820   962,104 
Churchill Downs Incorporated Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.09% 3/17/2028  498,750   497,555   493,139 
CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 5/17/2028  1,000,000   990,271   998,330 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.58% 2/2/2028  4,987,500   4,981,642   4,918,024 
Clarios Global LP Automotive First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.33% 4/30/2026  1,362,981   1,352,941   1,347,075 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  5.00%  1.00%  6.00% 8/9/2026  2,982,298   2,961,119   2,982,298 
CNT Holdings I Corp Retail First Lien Loan  6M USD LIBOR+  3.75%  0.75%  4.50% 11/8/2027  498,750   496,576   498,196 
Cole Haan Consumer goods: Non-durable First Lien Loan  3M USD LIBOR+  5.50%  0.00%  5.62% 2/7/2025  937,500   930,883   890,625 

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 
AssuredPartners Capital, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (2/20) Loan  1M USD LIBOR+  3.50%  0.00%  4.56% 2/12/2027  997,449   993,807   947,936 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Incremental Term Loan (7/21) Loan  1M USD LIBOR+  3.50%  0.50%  4.56% 2/12/2027  992,500   992,500   944,860 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+  3.50%  0.50%  4.53% 2/12/2027  500,000   498,884   476,250 
ASTRO ONE ACQUISITION CORPORATION Consumer goods: Durable Term Loan Loan  3M USD LIBOR+  5.50%  0.75%  6.51% 9/15/2028  2,992,500   2,965,557   2,657,340 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B6 Loan  1M USD LIBOR+  3.13%  0.00%  4.18% 11/3/2023  266,824   266,195   259,964 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan  1M USD LIBOR+  3.25%  0.00%  4.31% 12/18/2026  2,987,548   2,977,414   2,820,993 
ATHENAHEALTH GROUP INC. Healthcare & Pharmaceuticals Term Loan B (2/22) Loan  1M USD SOFR+  3.50%  0.50%  4.36% 2/15/2029  1,282,609   1,276,706   1,221,685 
ATHENAHEALTH GROUP INC. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (02/22) Loan  N/A  1.75%  0.50%  1.75% 2/15/2029  -   -   (10,326)
Avast Software S.R.O. (Sybil Finance) High Tech Industries Term Loan (Sybil Software) Loan  3M USD LIBOR+  1.75%  0.00%  2.76% 3/22/2028  1,900,000   1,895,949   1,858,447 
Avaya, Inc. Telecommunications Term Loan B1 Loan  1M USD LIBOR+  4.25%  0.00%  5.12% 12/15/2027  1,755,766   1,747,878   1,300,514 
Avaya, Inc. Telecommunications Term Loan B-2 (2/21) Loan  1M USD LIBOR+  4.00%  0.00%  4.87% 12/15/2027  1,000,000   1,000,000   740,560 
Avison Young (Canada) Inc Services: Business Term Loan Loan  1M USD LIBOR+  5.75%  0.00%  6.81% 1/31/2026  3,397,217   3,363,977   3,374,557 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3 Loan  1M USD LIBOR+  1.75%  0.75%  2.68% 1/15/2025  1,000,000   908,241   965,830 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 (7/21) Loan  1M USD LIBOR+  2.25%  0.50%  3.18% 12/1/2027  493,750   489,804   476,316 
AZURITY PHARMACEUTICALS, INC. Healthcare & Pharmaceuticals Term Loan B Loan  3M USD LIBOR+  6.00%  0.75%  7.06% 9/20/2027  493,750   480,112   461,656 
B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan  1M USD LIBOR+  2.50%  0.00%  3.56% 10/10/2026  706,458   702,014   681,294 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan  1M USD LIBOR+  1.75%  0.00%  2.81% 11/19/2026  1,466,250   1,436,896   1,408,524 
BAKELITE UK INTERMEDIATE LTD. Chemicals, Plastics, & Rubber Term Loan Loan  3M USD SOFR+  4.00%  0.50%  4.50% 2/1/2029  1,000,000   995,000   937,500 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  3.50%  0.50%  4.34% 10/14/2027  1,235,663   1,223,441   1,187,781 
Bausch & Lomb T/L Healthcare & Pharmaceuticals Term Loan Loan  1M USD SOFR+  3.25%  0.50%  4.15% 5/5/2027  -   155   - 
Bausch Health Companies Inc. Healthcare & Pharmaceuticals Term Loan B (1/22) Loan  1M USD SOFR+  5.25%  0.50%  6.14% 2/1/2027  2,000,000   1,795,000   1,825,000 

 


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
Columbus McKinnon Corporation Capital Equipment First Lien Loan  3M USD LIBOR+  2.75%  0.50%  3.25% 5/14/2028  500,000   498,768   499,375 
Compass Power Generation, LLC Utilities: Electric First Lien Loan  1M USD LIBOR+  3.50%  1.00%  4.50% 12/20/2024  1,769,501   1,766,781   1,742,321 
Connect Finco SARL Telecommunications First Lien Loan  1M USD LIBOR+  3.50%  1.00%  4.50% 12/11/2026  2,962,500   2,827,213   2,959,419 
Consolidated Communications, Inc. Telecommunications First Lien Loan  1M USD LIBOR+  3.50%  0.75%  4.25% 10/2/2027  714,005   704,465   713,876 
CoreCivic, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  4.50%  1.00%  5.50% 12/18/2024  3,318,182   3,275,957   3,282,246 
Corelogic, Inc. Services: Business First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 6/2/2028  2,500,000   2,487,515   2,488,275 
Cortes NP Acquisition Corp (Vertiv) Capital Equipment First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.85% 3/2/2027  1,990,000   1,990,000   1,976,329 
COWEN INC. Banking, Finance, Insurance & Real Estate First Lien Loan  6M USD LIBOR+  3.25%  0.00%  4.00% 3/12/2028  2,985,000   2,970,564   2,981,269 
Cross Financial Corp Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 9/15/2027  500,000   499,415   500,415 
Crown Subsea Communications Holding, Inc. Construction & Building First Lien Loan  1M USD LIBOR+  5.00%  0.75%  5.75% 4/27/2027  2,691,781   2,665,904   2,706,370 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.35% 7/15/2025  1,944,163   1,928,046   1,914,300 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.35% 1/15/2026  487,500   486,761   479,403 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.60% 4/15/2027  492,500   492,500   485,905 
CTS Midco, LLC High Tech Industries First Lien Loan  3M USD LIBOR+  6.00%  1.00%  7.00% 11/2/2027  1,990,000   1,936,163   1,990,000 
Daseke Inc Transportation: Cargo First Lien Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 3/5/2028  1,496,250   1,489,073   1,495,008 
DCert Buyer, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.08% 10/16/2026  1,492,443   1,492,443   1,489,130 
Dealer Tire, LLC Automotive First Lien Loan  1M USD LIBOR+  4.25%  0.00%  4.33% 12/12/2025  2,955,000   2,949,495   2,946,135 
Delek US Holdings, Inc. Utilities: Oil & Gas First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.33% 3/31/2025  6,348,022   6,300,365   6,178,720 
Dell International LLC High Tech Industries First Lien Loan  1M USD LIBOR+  1.75%  0.25%  2.00% 9/19/2025  2,517,723   2,515,771   2,516,564 
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   817,645   814,811 
Diamond Sports Group, LLC Media: Broadcasting & Subscription First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.34% 8/24/2026  3,426,407   2,938,384   2,131,499 
Digital Room LLC Media: Advertising, Printing & Publishing First Lien Loan  6M USD LIBOR+  5.00%  0.00%  5.20% 5/21/2026  2,940,000   2,915,287   2,887,315 
DIRECTV FINANCING, LLC Media: Broadcasting & Subscription First Lien Loan  1M USD LIBOR+  5.00%  0.75%  5.75% 7/22/2027  4,000,000   3,960,166   3,997,720 

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 
Belfor Holdings Inc. Services: Consumer Term Loan Loan  1M USD LIBOR+  3.75%  0.00%  4.81% 4/6/2026  247,456   247,273   240,032 
Belfor Holdings Inc. Services: Consumer Term Loan B-2 (3/22) Loan  1M USD SOFR+  4.25%  0.50%  5.28% 4/6/2026  1,000,000   970,903   980,000 
Belron Finance US LLC Automotive Term Loan B (3/21) Loan  3M USD LIBOR+  2.50%  0.50%  3.88% 4/13/2028  1,980,000   1,963,157   1,931,490 
Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Term Loan Loan  3M USD SOFR+  3.25%  0.50%  4.00% 1/24/2029  2,000,000   1,998,460   1,955,000 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  3.31% 4/23/2026  987,342   981,727   949,082 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan (6/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.81% 4/23/2026  1,476,325   1,467,779   1,422,808 
Blucora, Inc. Services: Consumer Term Loan (11/17) Loan  3M USD LIBOR+  4.00%  1.00%  5.01% 5/22/2024  2,441,367   2,436,766   2,392,539 
Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber Term Loan (2/21) Loan  3M USD LIBOR+  2.50%  0.00%  3.50% 3/4/2028  990,000   987,965   950,400 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan  1M USD LIBOR+  2.00%  0.00%  3.06% 5/24/2027  1,466,299   1,458,278   1,397,017 
Boxer Parent Company, Inc. High Tech Industries Term Loan (2/21) Loan  1M USD LIBOR+  3.75%  0.00%  4.81% 10/2/2025  521,333   521,333   499,504 
Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  4.25%  0.00%  5.22% 9/5/2025  965,000   962,678   935,085 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Term Loan B-3 Loan  1M USD LIBOR+  3.50%  0.00%  4.46% 3/5/2026  990,000   990,000   953,578 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan  1M USD LIBOR+  3.00%  0.00%  4.06% 1/22/2027  2,971,527   2,966,501   2,818,404 
Brookfield WEC Holdings Inc. Energy: Electricity Term Loan (1/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.81% 8/1/2025  1,473,807   1,475,784   1,406,822 
Buckeye Partners, L.P. Utilities: Oil & Gas Term Loan (1/21) Loan  1M USD LIBOR+  2.25%  0.00%  3.05% 11/1/2026  1,965,113   1,953,829   1,904,941 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+  3.50%  0.50%  4.56% 3/31/2028  2,481,250   2,460,142   2,382,000 
Callaway Golf Company Retail Term Loan B Loan  1M USD LIBOR+  4.50%  0.00%  5.56% 1/4/2026  680,625   672,685   673,179 
CareerBuilder, LLC Services: Business Term Loan Loan  3M USD LIBOR+  6.75%  1.00%  7.76% 7/31/2023  5,393,388   5,272,206   3,651,755 
CareStream Health, Inc. Healthcare & Pharmaceuticals Term Loan Loan  6M USD LIBOR+  6.75%  1.00%  7.75% 5/8/2023  -   9,083   - 
Casa Systems, Inc Telecommunications Term Loan Loan  1M USD LIBOR+  4.00%  1.00%  5.06% 12/20/2023  1,387,375   1,384,009   1,304,133 
Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan  1M USD LIBOR+  3.75%  0.00%  4.81% 1/27/2027  1,975,943   1,965,275   1,753,650 

 


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
Dispatch Acquisition Holdings, LLC Environmental Industries First Lien Loan  3M USD LIBOR+  4.25%  0.75%  5.00% 3/25/2028  500,000   495,298   498,440 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.75%  0.00%  3.83% 3/1/2028  6,500,000   6,451,506   6,463,470 
DTZ U.S. Borrower, LLC Construction & Building First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.83% 8/21/2025  3,895,737   3,883,752   3,850,936 
EAB Global, Inc. Services: Business First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.60% 8/16/2028  1,000,000   995,000   992,710 
EagleTree - Carbride Acquisition (Corsair Components) Consumer goods: Durable First Lien Loan  Prime+  2.75%  1.00%  7.00% 8/28/2024  2,403,107   2,403,095   2,403,107 
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  2,221,875   2,213,381   2,208,833 
Electrical Components Inter., Inc. Capital Equipment First Lien Loan  1M USD LIBOR+  4.25%  0.00%  5.10% 6/26/2025  1,913,925   1,913,925   1,892,394 
ELO Touch Solutions, Inc. Media: Diversified & Production First Lien Loan  1M USD LIBOR+  6.50%  0.00%  6.59% 12/14/2025  2,383,602   2,297,744   2,383,602 
Encapsys, LLC (Cypress Performance Group) Chemicals, Plastics, & Rubber First Lien Loan  1M USD LIBOR+  3.25%  1.00%  4.25% 11/7/2024  489,712   486,540   488,948 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  5.00%  0.75%  5.75% 3/27/2028  2,358,934   2,349,479   2,286,845 
Endure Digital, Inc. High Tech Industries First Lien Loan  6M USD LIBOR+  3.50%  0.75%  4.25% 2/10/2028  2,500,000   2,488,334   2,480,475 
Ensemble RCM LLC Services: Business First Lien Loan  3M USD LIBOR+  3.75%  0.00%  3.88% 8/3/2026  2,984,810   2,978,219   2,981,616 
Enterprise Merger Sub Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  3.75%  0.00%  3.83% 10/10/2025  4,875,000   4,868,539   4,274,790 
EyeCare Partners, LLC Healthcare & Pharmaceuticals First Lien Loan  2M USD LIBOR+  3.75%  0.00%  3.86% 2/18/2027  1,977,899   1,977,219   1,959,188 
Finco I LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.58% 6/27/2025  2,808,125   2,803,375   2,786,558 
First Brands Group, LLC Automotive First Lien Loan  3M USD LIBOR+  5.00%  1.00%  6.00% 3/30/2027  8,977,500   8,859,653   9,033,609 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD LIBOR+  2.50%  0.00%  2.65% 2/1/2027  5,227,885   5,210,482   5,141,834 
First Student Bidco Inc. Transportation: Consumer First Lien Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 7/14/2028  730,392   725,158   724,505 
First Student Bidco Inc. Transportation: Consumer First Lien Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 7/14/2028  269,608   267,676   267,435 
Fitness International, LLC (LA Fitness) Services: Consumer First Lien Loan  1M USD LIBOR+  3.25%  1.00%  4.25% 4/18/2025  1,330,058   1,324,869   1,231,474 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.08% 7/3/2024  497,436   496,935   492,049 
Franchise Group, Inc. Services: Consumer First Lien Loan  3M USD LIBOR+  4.75%  0.75%  5.50% 3/10/2026  815,445   807,954   817,997 

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 
CBI BUYER, INC. Consumer goods: Durable Term Loan Loan  3M USD LIBOR+  3.25%  0.50%  4.26% 1/6/2028  992,500   990,636   884,982 
CCC Intelligent Solutions Inc. Services: Business Term Loan B Loan  3M USD LIBOR+  2.25%  0.50%  3.26% 9/16/2028  249,375   248,828   240,647 
CCI Buyer, Inc Telecommunications Term Loan Loan  3M USD SOFR+  4.00%  0.75%  4.75% 12/17/2027  247,500   245,469   236,981 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  3M USD LIBOR+  3.75%  0.75%  4.76% 3/5/2028  990,000   985,726   944,628 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  5.50%  0.00%  7.07% 9/25/2025  2,418,750   2,406,358   2,358,281 
Cengage Learning, Inc. Media: Advertising, Printing & Publishing Term Loan B (6/21) Loan  6M USD LIBOR+  4.75%  1.00%  5.75% 7/14/2026  2,985,000   2,960,281   2,841,093 
CENTURI GROUP, INC. Construction & Building Term Loan B Loan  1M USD LIBOR+  2.50%  0.50%  3.56% 8/27/2028  885,830   877,884   850,397 
CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan  1M USD LIBOR+  2.25%  0.00%  3.31% 3/15/2027  3,919,874   3,914,794   3,674,882 
Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  2.81% 4/3/2025  913,004   880,469   880,884 
Churchill Downs Incorporated Hotel, Gaming & Leisure Term Loan B1 (3/21) Loan  1M USD LIBOR+ ��2.00%  0.00%  3.06% 3/17/2028  495,000   493,964   472,314 
CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing USD Term Loan Loan  1M USD LIBOR+  3.50%  0.50%  4.56% 5/17/2028  992,500   983,847   942,260 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan  1M USD SOFR+  2.50%  0.00%  3.65% 2/2/2028  4,950,000   4,945,532   4,782,938 
Clarios Global LP Automotive Term Loan B1 Loan  1M USD LIBOR+  3.25%  0.00%  4.31% 4/30/2026  1,267,812   1,259,924   1,215,717 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B-1 (11/21) Loan  1M USD SOFR+  4.50%  0.50%  5.39% 8/9/2026  3,466,022   3,445,212   3,344,712 
CLYDESDALE ACQUISITION HOLDINGS, INC. Containers, Packaging & Glass Term Loan B Loan  1M USD SOFR+  4.25%  0.50%  5.38% 4/13/2029  1,500,000   1,463,084   1,425,000 
Cole Haan Consumer goods: Non-durable Term Loan B Loan  3M USD LIBOR+  5.50%  0.00%  7.07% 2/7/2025  912,500   907,512   732,281 
Columbus McKinnon Corporation Capital Equipment Term Loan (4/21) Loan  3M USD LIBOR+  2.75%  0.50%  3.81% 5/14/2028  477,687   476,684   466,342 
Conduent, Inc. Services: Business Term Loan B Loan  1M USD LIBOR+  4.25%  0.50%  5.31% 10/16/2028  997,500   988,351   986,697 
Connect Finco SARL Telecommunications Term Loan (1/21) Loan  1M USD LIBOR+  3.50%  1.00%  4.56% 12/11/2026  2,940,000   2,822,180   2,815,050 
Consolidated Communications, Inc. Telecommunications Term Loan B Loan  1M USD LIBOR+  3.50%  0.75%  4.56% 10/2/2027  2,714,005   2,495,563   2,405,287 
CORAL-US CO-BORROWER LLC Telecommunications Term Loan B-5 Loan  1M USD LIBOR+  2.25%  0.00%  3.12% 1/31/2028  4,000,000   3,987,396   3,857,000 
Corelogic, Inc. Services: Business Term Loan (4/21) Loan  1M USD LIBOR+  3.50%  0.50%  4.56% 6/2/2028  2,487,500   2,476,537   2,276,063 
Cortes NP Acquisition Corp (Vertiv) Capital Equipment Term Loan 2/21 Loan  1M USD LIBOR+  2.75%  0.00%  3.55% 3/2/2027  1,975,000   1,975,000   1,870,898 
COWEN INC. Banking, Finance, Insurance & Real Estate Term Loan Loan  6M USD LIBOR+  3.25%  0.00%  4.63% 3/24/2028  3,957,462   3,935,528   3,764,536 
CROCS INC Consumer goods: Durable Term Loan Loan  6M USD SOFR+  3.50%  0.50%  4.45% 2/20/2029  3,000,000   2,880,321   2,799,990 

 


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
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  4,376,239   4,354,501   4,343,417 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.33% 1/29/2027  1,980,000   1,976,171   1,948,379 
Fusion Telecommunications International Inc. Telecommunications First Lien Loan  6M USD LIBOR+  1.00%  2.00%  3.00% 7/14/2025  847,376   831,761   444,872 
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   1,492,791   1,490,625 
Gemini HDPE LLC Chemicals, Plastics, & Rubber First Lien Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 12/31/2027  2,442,722   2,424,564   2,436,615 
General Nutrition Centers, Inc. Retail Second Lien Loan  1M USD LIBOR+  6.00%  0.00%  6.20% 10/7/2026  362,697   362,697   327,878 
Genesee & Wyoming, Inc. Transportation: Cargo First Lien Loan  3M USD LIBOR+  2.00%  0.00%  2.15% 12/30/2026  1,481,250   1,475,581   1,464,586 
GEO Group, Inc., The Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.00%  0.75%  2.75% 3/22/2024  3,943,378   3,691,910   3,672,271 
GGP Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.58% 8/27/2025  3,949,237   3,263,359   3,854,218 
GI Chill Acquisition LLC Services: Business First Lien Loan  3M USD LIBOR+  3.75%  0.00%  3.90% 8/1/2025  3,927,404   3,905,897   3,907,767 
Gigamon Inc. Services: Business First Lien Loan  6M USD LIBOR+  3.75%  0.75%  4.50% 12/27/2024  2,915,536   2,900,270   2,915,536 
Global Business Travel (GBT) III Inc. Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 8/13/2025  4,376,250   4,375,524   3,982,388 
Global Tel*Link Corporation Telecommunications First Lien Loan  1M USD LIBOR+  4.25%  0.00%  4.33% 11/29/2025  4,938,649   4,726,941   4,570,028 
Go Daddy Operating Company, LLC High Tech Industries First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.85% 8/10/2027  1,989,950   1,989,950   1,970,667 
Go Wireless Holdings, Inc. Telecommunications First Lien Loan  1M USD LIBOR+  6.50%  1.00%  7.50% 12/22/2024  2,935,714   2,907,976   2,927,142 
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   2,941,442   2,956,260 
Graham Packaging Co Inc Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  3.00%  0.75%  3.75% 8/7/2027  977,212   970,886   972,453 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.33% 4/12/2024  3,053,462   3,033,355   3,042,011 
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  3,890,241   3,886,532   3,865,927 
Guidehouse LLP (fka PricewaterhouseCoopers) Aerospace & Defense First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.08% 5/1/2025  4,912,371   4,893,863   4,912,371 
Harbor Freight Tools USA, Inc. Retail First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 10/19/2027  3,491,206   3,468,009   3,476,927 
Harland Clarke Holdings Corp. Media: Advertising, Printing & Publishing First Lien Loan  1M USD LIBOR+  4.75%  1.00%  5.75% 11/3/2023  1,262,555   1,259,517   1,186,802 

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 
Cross Financial Corp Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  6M USD LIBOR+  4.00%  0.75%  4.81% 9/15/2027  496,250   495,764   478,469 
Crown Subsea Communications Holding, Inc. Construction & Building Term Loan (4/21) Loan  1M USD LIBOR+  4.75%  0.75%  5.55% 4/27/2027  2,404,110   2,383,901   2,331,986 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B (03/17) Loan  1M USD LIBOR+  2.25%  0.00%  3.12% 7/15/2025  1,928,934   1,915,989   1,830,076 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  3.12% 1/15/2026  483,750   483,173   457,144 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan  1M USD LIBOR+  2.50%  0.00%  3.37% 4/15/2027  488,750   488,750   459,425 
CTS Midco, LLC High Tech Industries Term Loan B Loan  3M USD LIBOR+  6.00%  1.00%  7.24% 11/2/2027  1,975,000   1,927,236   1,866,375 
Daseke Inc Transportation: Cargo Term Loan 2/21 Loan  1M USD LIBOR+  4.00%  0.75%  4.93% 3/5/2028  1,485,000   1,478,801   1,410,750 
DCert Buyer, Inc. High Tech Industries Term Loan Loan  1M USD LIBOR+  4.00%  0.00%  5.06% 10/16/2026  1,481,108   1,481,108   1,442,851 
Dealer Tire, LLC Automotive Term Loan B-1 Loan  1M USD LIBOR+  4.25%  0.00%  5.31% 12/12/2025  2,932,500   2,928,270   2,856,754 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  3.27% 3/31/2025  6,299,031   6,261,515   6,054,943 
DexKo Global, Inc. (Dragon Merger) Automotive Term Loan (9/21) Loan  3M USD LIBOR+  3.75%  0.50%  4.76% 10/4/2028  840,000   836,252   784,216 
DexKo Global, Inc. (Dragon Merger) Automotive Delayed Draw Term Loan (9/21) Loan  3M USD LIBOR+  3.75%  0.50%  4.76% 10/4/2028  160,000   160,000   149,374 
Diamond Sports Group, LLC Media: Broadcasting & Subscription 1st Priority Term Loan Loan  1M USD SOFR+  8.00%  1.00%  9.00% 5/25/2026  344,930   335,006   346,310 
Diamond Sports Group, LLC Media: Broadcasting & Subscription Second Lien Term Loan Loan  1M USD SOFR+  3.25%  0.00%  4.09% 8/24/2026  3,400,447   2,977,892   1,019,284 
DIRECTV FINANCING, LLC Media: Broadcasting & Subscription Term Loan Loan  1M USD LIBOR+  5.00%  0.75%  6.06% 8/2/2027  3,820,000   3,786,881   3,689,471 
Dispatch Acquisition Holdings, LLC Environmental Industries Term Loan B (3/21) Loan  3M USD LIBOR+  4.25%  0.75%  5.26% 3/25/2028  496,250   492,089   465,234 
DOMTAR CORPORATION Forest Products & Paper Term Loan 9/21 Loan  1M USD LIBOR+  5.50%  0.75%  6.34% 11/30/2028  838,544   830,684   822,821 
DRI HOLDING INC. Media: Advertising, Printing & Publishing Term Loan (12/21) Loan  1M USD LIBOR+  5.25%  0.50%  6.31% 12/15/2028  3,000,000   2,971,916   2,670,000 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan (2/21) Loan  1M USD LIBOR+  3.75%  0.00%  4.81% 3/1/2028  6,435,000   6,392,510   6,180,303 
DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan  1M USD LIBOR+  2.75%  0.00%  3.81% 8/21/2025  3,866,149   3,856,616   3,747,768 
EAB Global, Inc. Services: Business Term Loan (08/21) Loan  1M USD LIBOR+  3.50%  0.50%  4.56% 8/16/2028  997,500   992,998   954,278 
Echo Global Logistics, Inc. Services: Business Term Loan Loan  1M USD LIBOR+  3.50%  0.50%  4.56% 11/23/2028  2,000,000   1,995,567   1,911,000 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  1M USD LIBOR+  3.50%  0.75%  4.56% 4/7/2028  2,205,211   2,197,882   2,115,437 

 


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  236,269   236,103   228,368 
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   4,145,829   4,131,015 
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   62,414 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.58% 8/18/2025  3,570,000   3,560,052   3,541,940 
Holley Purchaser, Inc Automotive First Lien Loan  3M USD LIBOR+  5.00%  0.00%  5.13% 10/24/2025  2,437,500   2,422,379   2,430,383 
Howden Group Holdings Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.25%  0.75%  4.00% 11/12/2027  1,683,873   1,678,145   1,677,558 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.00%  0.00%  3.08% 3/17/2028  5,985,000   5,928,126   5,891,993 
Idera, Inc. High Tech Industries First Lien Loan  6M USD LIBOR+  3.75%  0.75%  4.50% 3/2/2028  4,884,563   4,872,280   4,863,218 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber First Lien Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 1/29/2026  1,000,000   995,663   996,750 
INFINITE BIDCO LLC Wholesale First Lien Loan  1M USD LIBOR+  3.75%  0.50%  4.25% 3/2/2028  1,500,000   1,496,283   1,491,870 
Ingram Micro Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 6/30/2028  1,500,000   1,485,154   1,502,250 
Inmar Acquisition Sub, Inc. Services: Business First Lien Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 5/1/2024  3,403,858   3,352,030   3,399,603 
Innophos, Inc. Chemicals, Plastics, & Rubber First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.58% 2/4/2027  493,750   491,769   491,489 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable First Lien Loan  3M USD LIBOR+  5.00%  0.75%  5.75% 4/7/2028  2,500,000   2,476,039   2,493,750 
Intermediate Dutch Holdings Services: Business First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.10% 3/6/2028  1,246,875   1,246,739   1,244,282 
Isagenix International, LLC Beverage, Food & Tobacco First Lien Loan  3M USD LIBOR+  5.75%  1.00%  6.75% 6/14/2025  2,525,067   2,494,212   2,083,180 
Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.59% 3/14/2025  2,957,262   2,936,383   2,883,331 
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   1,338,671 
Jane Street Group Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.83% 1/31/2028  3,980,000   3,973,671   3,920,300 
Journey Personal Care Corp. Consumer goods: Non-durable First Lien Loan  3M USD LIBOR+  4.25%  0.75%  5.00% 3/1/2028  1,000,000   995,144   1,001,880 
JP Intermediate B, LLC Consumer goods: Non-durable First Lien Loan  3M USD LIBOR+  5.50%  1.00%  6.50% 11/15/2025  4,288,948   4,256,548   4,229,975 
KAR Auction Services, Inc. Automotive First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.38% 9/19/2026  245,625   245,189   241,327 
Kindred Healthcare, Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  4.50%  0.00%  4.63% 7/2/2025  1,974,797   1,959,819   1,972,329 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass First Lien Loan  3M USD LIBOR+  4.75%  0.50%  5.25% 2/12/2026  1,496,250   1,488,906   1,493,916 

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 
Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan  1M USD LIBOR+  4.25%  0.00%  5.31% 6/26/2025  1,898,938   1,898,938   1,771,956 
ELECTRON BIDCO INC. Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+  3.00%  0.50%  4.06% 11/1/2028  500,000   497,725   481,500 
ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan  1M USD LIBOR+  6.50%  0.00%  7.56% 12/14/2025  2,216,935   2,149,539   2,172,597 
Embecta Corp Healthcare & Pharmaceuticals Term Loan B Loan  3M USD SOFR+  3.00%  0.50%  3.65% 3/30/2029  619,565   615,936   603,110 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan (3/21) Loan  1M USD LIBOR+  5.00%  0.75%  6.06% 3/27/2028  2,341,198   2,333,356   1,816,137 
Endure Digital, Inc. High Tech Industries Term Loan B Loan  6M USD LIBOR+  3.50%  0.75%  4.25% 2/10/2028  2,481,250   2,471,151   2,332,375 
Enterprise Merger Sub Inc. Healthcare & Pharmaceuticals Term Loan B (06/18) Loan  1M USD LIBOR+  3.75%  0.00%  4.81% 10/10/2025  4,837,500   4,833,031   1,871,871 
Equiniti Group PLC Services: Business Term Loan B Loan  3M USD LIBOR+  4.50%  0.50%  5.20% 12/11/2028  997,500   988,297   980,044 
EyeCare Partners, LLC Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  3.75%  0.00%  4.76% 2/18/2027  1,962,990   1,962,809   1,826,287 
Finco I LLC Banking, Finance, Insurance & Real Estate Term Loan B (9/20) Loan  1M USD LIBOR+  2.50%  0.00%  3.56% 6/27/2025  3,784,373   3,778,126   3,677,465 
First Brands Group, LLC Automotive 1st Lien Term Loan (3/21) Loan  3M USD SOFR+  5.00%  1.00%  6.29% 3/30/2027  4,950,000   4,882,008   4,733,438 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan  3M USD LIBOR+  2.50%  0.00%  3.51% 2/1/2027  5,187,015   5,172,281   4,954,430 
First Student Bidco Inc. Transportation: Consumer Term Loan B Loan  3M USD LIBOR+  3.00%  0.50%  3.98% 7/21/2028  728,566   723,885   684,590 
First Student Bidco Inc. Transportation: Consumer Term Loan C Loan  3M USD LIBOR+  3.00%  0.50%  3.98% 7/21/2028  269,608   267,875   253,334 
Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan  3M USD LIBOR+  3.25%  1.00%  4.26% 4/18/2025  1,330,058   1,326,038   1,178,551 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Term Loan (1/20) Loan  1M USD LIBOR+  2.00%  0.00%  3.06% 7/3/2024  493,590   493,241   480,273 
Franchise Group, Inc. Services: Consumer First Out Term Loan Loan  3M USD LIBOR+  4.75%  0.75%  5.50% 3/10/2026  815,445   809,108   794,040 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  2.25%  0.00%  3.31% 8/1/2025  4,342,484   4,325,024   4,179,641 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan  1M USD LIBOR+  2.25%  0.00%  3.31% 1/29/2027  1,965,000   1,961,840   1,881,488 
Garrett LX III S.a r.l. Automotive Dollar Term Loan Loan  3M USD LIBOR+  3.25%  0.50%  4.49% 4/30/2028  1,492,500   1,486,138   1,406,681 
Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan  3M USD LIBOR+  3.00%  0.50%  4.24% 12/31/2027  2,367,296   2,351,709   2,305,652 
General Nutrition Centers, Inc. Retail Second Lien Term Loan Loan  1M USD LIBOR+  6.00%  0.00%  6.87% 10/7/2026  367,030   367,030   336,445 
Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan  3M USD LIBOR+  2.00%  0.00%  3.01% 12/30/2026  1,470,000   1,465,169   1,433,618 

 


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
Kodiak BP, LLC Construction & Building First Lien Loan  3M USD LIBOR+  3.25%  0.75%  4.00% 3/13/2028  498,750   496,345   496,670 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD LIBOR+  4.75%  1.00%  5.75% 9/1/2027  497,500   486,581   496,256 
Lakeland Tours, LLC Hotel, Gaming & Leisure First Lien Loan  3M USD LIBOR+  6.00%  1.25%  7.25% 9/25/2023  305,396   292,231   306,007 
Lakeland Tours, LLC Hotel, Gaming & Leisure First Lien Loan  3M USD LIBOR+  1.50%  1.25%  2.75% 9/25/2025  600,713   502,453   578,937 
Lakeland Tours, LLC Hotel, Gaming & Leisure First Lien Loan  3M USD LIBOR+  1.50%  1.25%  2.75% 9/25/2025  797,461   494,069   684,485 
Lakeland Tours, LLC Hotel, Gaming & Leisure First Lien Loan  Fixed  0.00%  0.00%  13.25% 9/27/2027  814,236   169,100   510,257 
Lealand Finance Company B.V. Energy: Oil & Gas First Lien Loan  1M USD LIBOR+  1.00%  0.00%  1.08% 6/30/2025  329,748   329,748   144,815 
Learfield Communications, Inc Media: Advertising, Printing & Publishing First Lien Loan  1M USD LIBOR+  3.25%  1.00%  4.25% 12/1/2023  477,500   476,669   453,878 
LIAISON ACQUISITION, LLC High Tech Industries First Lien Loan  6M USD LIBOR+  3.75%  0.75%  4.50% 3/4/2028  995,000   992,679   995,000 
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   2,669,386   2,675,569 
Liftoff Mobile, Inc. Media: Advertising, Printing & Publishing First Lien Loan  3M USD LIBOR+  3.50%  0.75%  4.25% 3/16/2028  995,000   990,347   991,269 
Lightstone Generation LLC Energy: Electricity First Lien Loan  3M USD LIBOR+  3.75%  1.00%  4.75% 1/30/2024  1,322,520   1,321,413   980,913 
Lightstone Generation LLC Energy: Electricity First Lien Loan  3M USD LIBOR+  3.75%  1.00%  4.75% 1/30/2024  74,592   74,532   55,325 
Lindblad Expeditions, Inc. Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 3/21/2025  393,300   392,823   370,685 
Lindblad Expeditions, Inc. Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 3/21/2025  98,325   98,206   92,671 
Liquid Tech Solutions Holdings, LLC Services: Business First Lien Loan  6M USD LIBOR+  4.75%  0.00%  5.50% 3/17/2028  1,000,000   995,194   997,500 
LogMeIn, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  4.75%  0.00%  4.85% 8/31/2027  3,980,000   3,912,495   3,964,438 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.83% 11/11/2026  1,226,534   1,224,262   1,216,722 
MA FinanceCo LLC High Tech Industries First Lien Loan  3M USD LIBOR+  4.25%  1.00%  5.25% 6/5/2025  2,443,632   2,436,332   2,449,741 
MAGNITE, INC. Services: Business First Lien Loan  3M USD LIBOR+  5.00%  0.75%  5.75% 4/28/2028  2,000,000   1,942,141   1,985,000 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.83% 8/29/2025  1,317,074   1,317,074   1,287,440 
Match Group, Inc, The Services: Consumer First Lien Loan  3M USD LIBOR+  1.75%  0.00%  1.87% 2/15/2027  250,000   249,529   247,438 

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  -   191,515   - 
GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD SOFR+  2.50%  0.00%  3.63% 8/27/2025  3,116,200   2,672,664   2,977,280 
Global Business Travel (GBT) III Inc. Hotel, Gaming & Leisure Term Loan Loan  1M USD LIBOR+  2.50%  0.00%  3.56% 8/13/2025  4,342,500   4,341,943   4,067,489 
Global Tel*Link Corporation Telecommunications Term Loan B Loan  1M USD LIBOR+  4.25%  0.00%  5.31% 11/29/2025  4,935,901   4,757,245   4,641,277 
Go Daddy Operating Company, LLC High Tech Industries Term Loan 2/21 Loan  1M USD LIBOR+  2.00%  0.00%  3.06% 8/10/2027  1,974,874   1,974,874   1,927,142 
GOLDEN WEST PACKAGING GROUP LLC Forest Products & Paper Term Loan (11/21) Loan  1M USD LIBOR+  5.25%  0.75%  6.31% 12/1/2027  2,000,000   1,981,697   1,920,000 
Graham Packaging Co Inc Containers, Packaging & Glass Term Loan (2/21) Loan  1M USD LIBOR+  3.00%  0.75%  4.06% 8/7/2027  969,864   964,373   918,403 
Great Outdoors Group, LLC Retail Term Loan B2 Loan  1M USD LIBOR+  3.75%  0.75%  4.81% 3/6/2028  987,538   983,235   935,198 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  3.25%  0.00%  4.31% 4/12/2024  2,844,231   2,830,909   2,806,317 
Griffon Corporation Consumer goods: Durable Term Loan B Loan  1M USD SOFR+  2.75%  0.50%  3.67% 1/24/2029  250,000   249,421   240,938 
Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Amendment 5 Term Loan Loan  1M USD LIBOR+  2.50%  0.50%  3.56% 2/24/2028  3,860,991   3,858,037   3,758,443 
Harbor Freight Tools USA, Inc. Retail Term Loan B (06/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.81% 10/19/2027  3,464,824   3,444,560   3,195,018 
Harland Clarke Holdings Corp. Media: Advertising, Printing & Publishing Term Loan (08/21) Loan  3M USD LIBOR+  7.75%  1.00%  8.76% 6/16/2026  1,242,039   1,240,375   975,000 
Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan  1M USD LIBOR+  3.75%  1.00%  4.81% 6/3/2024  219,254   219,183   204,952 
Hillman Group Inc. (The) (New) Consumer goods: Durable Term Loan B-1 (2/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.71% 7/14/2028  3,505,591   3,498,332   3,333,221 
Hillman Group Inc. (The) (New) (a) Consumer goods: Durable Delayed Draw Term Loan (2/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.71% 7/14/2028  776,371   67,173   25,696 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan  1M USD LIBOR+  2.50%  0.00%  3.56% 8/18/2025  3,540,000   3,532,098   3,364,097 
Holley Purchaser, Inc Automotive Term Loan (11/21) Loan  3M USD LIBOR+  3.75%  0.75%  5.21% 11/17/2028  2,132,143   2,122,638   2,042,422 
Holley Purchaser, Inc Automotive Delayed Draw Term Loan Loan  3M USD LIBOR+  3.75%  0.75%  4.58% 11/17/2028  203,036   203,036   194,492 
Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan  1M USD LIBOR+  3.25%  0.75%  4.31% 11/12/2027  2,168,662   2,159,297   2,078,901 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan (3/21) Loan  1M USD SOFR+  3.00%  0.00%  4.15% 3/17/2028  5,940,000   5,889,766   5,652,920 
Idera, Inc. High Tech Industries Term Loan (02/21) Loan  1M USD LIBOR+  3.75%  0.75%  4.52% 3/2/2028  4,847,837   4,837,862   4,647,864 
IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/21) Loan  1M USD LIBOR+  3.75%  0.50%  4.81% 11/1/2028  1,995,000   1,985,976   1,907,719 
INDY US BIDCO, LLC Services: Business Term Loan (11/21) Loan  1M USD LIBOR+  3.75%  0.00%  4.81% 3/6/2028  2,232,531   2,232,285   2,159,974 

 


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%  4.58% 2/28/2025  3,409,643   3,383,172   3,391,163 
McAfee, LLC Services: Business First Lien Loan  1M USD LIBOR+  3.75%  0.00%  3.83% 9/30/2024  1,653,176   1,648,146   1,652,978 
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   1,980,033   1,985,000 
Meredith Corporation Media: Advertising, Printing & Publishing First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.58% 1/31/2025  578,738   578,036   575,283 
Mermaid Bidco Inc. High Tech Industries First Lien Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 12/12/2027  998,750   995,314   997,502 
Messer Industries, LLC Chemicals, Plastics, & Rubber First Lien Loan  3M USD LIBOR+  2.50%  0.00%  2.65% 3/1/2026  3,563,966   3,546,312   3,532,782 
MIC GLEN LLC Beverage, Food & Tobacco First Lien Loan  3M USD LIBOR+  3.50%  0.50%  4.00% 6/23/2028  250,000   248,750   248,393 
Michaels Companies Inc Retail First Lien Loan  1M USD LIBOR+  4.25%  0.75%  5.00% 4/8/2028  1,500,000   1,485,633   1,500,000 
Milk Specialties Company Beverage, Food & Tobacco First Lien Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 8/23/2025  3,820,663   3,789,653   3,805,151 
Mitchell International, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  4.25%  0.50%  4.75% 11/29/2024  992,500   946,122   992,500 
MKS Instruments, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.83% 2/2/2026  873,253   867,410   867,358 
MLN US Holdco LLC Telecommunications First Lien Loan  1M USD LIBOR+  4.50%  0.00%  4.59% 12/1/2025  975,000   973,867   883,594 
MRC Global Inc. Metals & Mining First Lien Loan  1M USD LIBOR+  3.00%  0.00%  3.08% 9/20/2024  351,484   351,051   348,848 
MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment First Lien Loan  3M USD LIBOR+  3.75%  0.00%  3.90% 9/30/2024  2,842,097   2,807,691   2,778,150 
Natgasoline LLC Chemicals, Plastics, & Rubber First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.63% 11/14/2025  1,479,866   1,452,947   1,476,167 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  3.75%  0.75%  4.50% 3/2/2028  2,777,055   2,764,611   2,768,391 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 3/2/2028  87,464   87,054   87,191 
National Mentor Holdings, Inc.(a) Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  3.75%  0.75%  3.75% 3/2/2028  (0)  -   (402)
Neenah, Inc. Forest Products & Paper First Lien Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 4/6/2028  2,000,000   1,990,298   1,997,500 
NeuStar, Inc. Telecommunications First Lien Loan  3M USD LIBOR+  3.50%  1.00%  4.50% 8/8/2024  2,641,566   2,615,518   2,593,146 
NeuStar, Inc. Telecommunications First Lien Loan  3M USD LIBOR+  4.50%  1.00%  5.50% 8/8/2024  885,162   874,859   863,768 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.60% 9/18/2026  1,113,795   1,102,139   1,107,703 

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 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber Term Loan (1/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.81% 1/29/2026  992,500   988,964   961,484 
Informatica Inc. High Tech Industries Term Loan B (10/21) Loan  1M USD LIBOR+  2.75%  0.00%  3.81% 10/27/2028  500,000   499,475   484,165 
Ingram Micro Inc. High Tech Industries Term Loan Loan  3M USD LIBOR+  3.50%  0.50%  4.51% 6/30/2028  1,488,750   1,475,493   1,460,836 
Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan  3M USD LIBOR+  4.00%  1.00%  5.01% 5/1/2024  3,377,265   3,339,727   3,253,016 
Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan  1M USD LIBOR+  3.50%  0.00%  4.56% 2/4/2027  490,000   488,325   480,813 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable Term Loan 4/21 Loan  6M USD LIBOR+  5.00%  0.75%  7.08% 4/7/2028  4,282,942   4,262,545   3,879,617 
INSTRUCTURE HOLDINGS, INC. High Tech Industries Term Loan B Loan  3M USD LIBOR+  2.75%  0.50%  3.27% 10/30/2028  500,000   498,875   486,250 
Isagenix International, LLC Beverage, Food & Tobacco Term Loan Loan  3M USD LIBOR+  5.75%  1.00%  6.75% 6/14/2025  2,378,794   2,355,030   1,395,853 
Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+  3.50%  0.00%  4.43% 3/14/2025  2,949,539   2,933,008   2,777,492 
J Jill Group, Inc Retail Priming Term Loan Loan  3M USD LIBOR+  5.00%  1.00%  6.00% 5/8/2024  1,569,605   1,568,865   1,466,011 
Jane Street Group Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan  1M USD LIBOR+  2.75%  0.00%  3.81% 1/31/2028  3,950,000   3,945,053   3,821,625 
Journey Personal Care Corp. Consumer goods: Non-durable Term Loan B Loan  3M USD LIBOR+  4.25%  0.75%  5.26% 3/1/2028  992,500   988,224   823,775 
JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan  3M USD LIBOR+  5.50%  1.00%  6.74% 11/15/2025  4,086,554   4,060,849   3,323,226 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Term Loan (1/21) (USD) Loan  6M USD LIBOR+  4.75%  0.50%  5.55% 2/12/2026  1,485,000   1,479,368   1,315,458 
Kodiak BP, LLC Construction & Building Term Loan Loan  1M USD LIBOR+  3.25%  0.75%  4.31% 3/13/2028  495,000   493,576   459,939 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan  1M USD LIBOR+  3.50%  0.50%  4.38% 9/1/2027  495,009   485,332   485,109 
Lakeland Tours, LLC Hotel, Gaming & Leisure Third Out PIK Term Loan Loan  3M USD LIBOR+  1.50%  1.25%  2.75% 9/25/2025  828,458   563,842   745,613 
Lakeland Tours, LLC Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan  Fixed  0.00%  0.00%  13.25% 9/27/2027  928,253   297,446   631,212 

 


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
Next Level Apparel, Inc. Retail First Lien Loan  6M PL WIBOR+  6.00%  1.00%  7.00% 8/9/2024  1,750,340   1,740,436   1,671,575 
NM Z Parent Inc (Zep Inc) Chemicals, Plastics, & Rubber First Lien Loan  6M USD LIBOR+  4.00%  1.00%  5.00% 8/9/2024  2,406,250   2,400,553   2,322,031 
NorthPole Newco S.a.r.l Aerospace & Defense First Lien Loan  3M USD LIBOR+  7.00%  0.00%  7.15% 3/3/2025  5,166,952   4,798,846   4,430,661 
Novolex Holdings, Inc (Flex Acquisition) Containers, Packaging & Glass First Lien Loan  3M USD LIBOR+  3.50%  0.50%  4.00% 3/2/2028  997,500   992,801   991,086 
NPC International, Inc.(b) Beverage, Food & Tobacco First Lien Loan  Prime+  4.50%  1.00%  7.75% 4/19/2024  69,157   69,104   2,075 
Nuvei Technologies Corp. High Tech Industries First Lien Loan  1M USD LIBOR+  2.50%  0.50%  3.25% 9/29/2025  2,250,000   2,244,753   2,241,563 
Organon & Co. Healthcare & Pharmaceuticals First Lien Loan  6M USD LIBOR+  3.00%  0.50%  3.50% 6/2/2028  2,500,000   2,487,890   2,507,300 
Pacific Gas and Electric Company Utilities: Electric First Lien Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 6/18/2025  1,487,481   1,480,746   1,423,029 
Padagis LLC Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  4.75%  0.50%  5.25% 6/29/2028  1,000,000   990,100   998,750 
PAE Holding Corp Aerospace & Defense First Lien Loan  3M USD LIBOR+  4.50%  0.75%  5.25% 10/14/2027  1,990,000   1,963,330   1,986,518 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries First Lien Loan  3M USD LIBOR+  4.50%  0.50%  5.00% 1/7/2028  500,000   496,596   500,210 
Pathway Partners Vet Management Company LLC Services: Business First Lien Loan  1M USD LIBOR+  3.75%  0.00%  3.83% 3/30/2027  493,955   484,230   490,636 
PCI Gaming Authority Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.58% 5/29/2026  855,192   852,048   848,317 
Penn National Gaming Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  2.25%  0.75%  3.00% 10/15/2025  1,772,827   1,718,783   1,765,346 
Peraton Corp. Aerospace & Defense First Lien Loan  1M USD LIBOR+  3.75%  0.75%  4.50% 2/1/2028  4,987,500   4,963,372   4,986,453 
PGX T/L (Progrexion) Automotive First Lien Loan  1M USD LIBOR+  3.75%  0.75%  4.50% 3/3/2028  2,000,000   1,990,545   1,976,420 
Pitney Bowes Inc Services: Business First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.09% 3/17/2028  2,992,500   2,974,564   2,995,493 
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   3,513,367   3,527,285 
Plastipak Holdings Inc. Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.59% 10/14/2024  2,789,599   2,774,146   2,774,647 
Playtika Holding Corp. High Tech Industries First Lien Loan  1M USD LIBOR+  2.75%  0.00%  2.83% 3/13/2028  4,488,750   4,479,078   4,469,897 
PointClickCare Technologies, Inc. High Tech Industries First Lien Loan  6M USD LIBOR+  3.00%  0.75%  3.75% 12/29/2027  498,750   496,535   498,127 
Polymer Process Holdings, Inc. Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  4.75%  0.75%  5.50% 2/12/2028  5,486,250   5,426,678   5,424,530 
PPD, Inc. Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  2.00%  0.50%  2.50% 1/13/2028  498,750   496,479   497,149 
Pre-Paid Legal Services, Inc. Services: Consumer First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.33% 5/1/2025  2,000,000   2,004,234   1,987,500 

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 
Lealand Finance Company B.V. Energy: Oil & Gas Exit Term Loan Loan  1M USD LIBOR+  1.00%  0.00%  2.06% 6/30/2025  337,326   337,326   167,819 
Learfield Communications, Inc Media: Advertising, Printing & Publishing Initial Term Loan (A-L Parent) Loan  1M USD LIBOR+  3.25%  1.00%  4.31% 12/1/2023  473,750   473,248   443,994 
Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan  1M USD LIBOR+  3.50%  1.00%  4.56% 2/28/2025  2,616,496   2,597,391   2,556,525 
LIGHTSTONE HOLDCO LLC Energy: Electricity Term Loan Loan  3M USD SOFR+  5.75%  1.00%  7.02% 2/1/2027  1,242,048   1,241,321   1,127,159 
LIGHTSTONE HOLDCO LLC Energy: Electricity Term Loan Loan  3M USD SOFR+  5.75%  1.00%  7.02% 2/1/2027  70,053   70,014   63,574 
Liquid Tech Solutions Holdings, LLC Services: Business Term Loan Loan  12M USD LIBOR+  4.75%  0.00%  5.75% 3/17/2028  992,500   989,269   977,613 
LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan  1M USD LIBOR+  4.75%  0.00%  5.68% 8/31/2027  3,950,000   3,890,732   3,397,000 
LOYALTY VENTURES INC. Services: Business Term Loan B Loan  1M USD LIBOR+  4.50%  0.50%  5.56% 11/3/2027  3,277,513   3,259,370   3,048,087 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan  1M USD LIBOR+  1.75%  0.00%  2.55% 11/11/2026  1,217,195   1,215,295   1,186,765 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD SOFR+  3.50%  0.50%  4.65% 10/16/2028  250,000   248,900   238,438 
LSF9 Atlantis Holdings, LLC (A Wireless) Retail Term Loan B Loan  3M USD SOFR+  7.25%  0.75%  8.00% 3/29/2029  3,000,000   2,901,311   2,735,010 
MA FinanceCo LLC High Tech Industries Term Loan B4 Loan  3M USD LIBOR+  4.25%  1.00%  5.25% 6/5/2025  2,396,175   2,390,447   2,264,386 
MAGNITE, INC. Services: Business Term Loan Loan  6M USD LIBOR+  5.00%  0.75%  5.81% 4/28/2028  1,985,000   1,942,739   1,915,525 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan  1M USD LIBOR+  1.75%  0.00%  2.81% 8/29/2025  1,317,074   1,317,074   1,275,639 
Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan  3M USD LIBOR+  1.75%  0.00%  3.19% 2/15/2027  250,000   249,606   240,000 
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  4.50%  0.00%  5.56% 2/28/2025  3,383,286   3,362,463   3,302,933 
McGraw-Hill Education, Inc. Media: Advertising, Printing & Publishing Term Loan (07/21) Loan  1M USD LIBOR+  4.75%  0.50%  5.81% 7/28/2028  1,990,000   1,971,837   1,887,177 
MedAssets Software Inter Hldg, Inc. High Tech Industries Term Loan (11/21) (USD) Loan  6M USD LIBOR+  4.00%  0.50%  4.50% 12/18/2028  500,000   494,646   479,375 
Mermaid Bidco Inc. High Tech Industries Term Loan B2 Loan  3M USD LIBOR+  3.50%  0.75%  4.79% 12/22/2027  991,259   988,348   944,175 
Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan  3M USD LIBOR+  2.50%  0.00%  3.51% 3/1/2026  3,371,438   3,357,414   3,247,538 
Michaels Companies Inc Retail Term Loan B (Magic Mergeco) Loan  3M USD LIBOR+  4.25%  0.75%  5.26% 4/8/2028  2,486,237   2,468,938   2,133,117 
Milk Specialties Company Beverage, Food & Tobacco Term Loan (6/21) Loan  3M USD LIBOR+  4.00%  1.00%  5.01% 8/15/2025  3,792,008   3,766,790   3,728,492 
MJH Healthcare Holdings, LLC Healthcare & Pharmaceuticals Term Loan B (01/22) Loan  1M USD SOFR+  3.50%  0.50%  4.46% 1/28/2029  250,000   248,853   237,500 
MKS Instruments, Inc. High Tech Industries Term Loan B6 Loan  1M USD LIBOR+  1.75%  0.00%  2.81% 2/2/2026  866,167   861,350   847,224 

 


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+  4.00%  0.75%  4.75% 5/1/2025  992,500   980,242   993,741 
Presidio, Inc. Services: Business First Lien Loan  3M USD LIBOR+  3.50%  0.00%  3.63% 1/22/2027  495,000   494,133   492,733 
Prime Security Services Borrower, LLC (ADT) Services: Consumer First Lien Loan  6M USD LIBOR+  2.75%  0.75%  3.50% 9/23/2026  3,574,216   3,565,620   3,566,388 
PRIORITY HOLDINGS, LLC Services: Consumer First Lien Loan  1M USD LIBOR+  5.75%  1.00%  6.75% 4/27/2027  1,525,424   1,496,343   1,513,037 
PRIORITY HOLDINGS, LLC(a) Services: Consumer First Lien Loan  3M USD LIBOR+  5.75%  1.00%  5.75% 4/27/2027  -   -   (11,974)
PriSo Acquisition Corporation Construction & Building First Lien Loan  3M USD LIBOR+  3.25%  0.75%  4.00% 12/28/2027  498,750   496,392   495,383 
Project Leopard Holdings Inc High Tech Industries First Lien Loan  6M USD LIBOR+  4.75%  1.00%  5.75% 7/5/2024  497,500   496,256   498,535 
Prometric Inc. (Sarbacane Bidco) Services: Consumer First Lien Loan  1M USD LIBOR+  3.00%  1.00%  4.00% 1/29/2025  483,863   482,619   474,306 
PUG LLC Services: Consumer First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.58% 2/12/2027  487,550   485,572   472,110 
Rackspace Technology Global, Inc. High Tech Industries First Lien Loan  2M USD LIBOR+  2.75%  0.75%  3.50% 2/15/2028  498,750   496,489   493,189 
RealPage, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  3.25%  0.50%  3.75% 4/24/2028  1,000,000   997,617   993,630 
Renaissance Learning, Inc. Services: Consumer First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.33% 5/30/2025  2,982,444   2,956,023   2,939,586 
Rent-A-Center, Inc. Retail First Lien Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 2/17/2028  498,750   496,483   500,466 
Research Now Group, Inc Media: Advertising, Printing & Publishing First Lien Loan  6M USD LIBOR+  5.50%  1.00%  6.50% 12/20/2024  4,366,000   4,277,329   4,292,346 
Resideo Funding Inc. Services: Consumer First Lien Loan  3M USD LIBOR+  2.25%  0.50%  2.75% 2/11/2028  1,496,250   1,493,318   1,481,288 
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  3,636,833   3,629,391   3,618,649 
Reynolds Consumer Products LLC Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.83% 1/29/2027  1,299,432   1,298,231   1,289,920 

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 
MRC Global Inc. Metals & Mining Term Loan B2 Loan  1M USD LIBOR+  3.00%  0.00%  4.06% 9/20/2024  351,484   351,187   341,818 
MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental) Loan  3M USD LIBOR+  3.75%  0.00%  4.76% 9/30/2024  2,842,097   2,815,833   2,746,177 
NAB Holdings, LLC (North American Bancard) Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan  3M USD SOFR+  3.00%  0.50%  3.80% 11/23/2028  2,992,500   2,985,727   2,838,596 
Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+  3.50%  0.00%  4.56% 11/14/2025  3,463,328   3,441,177   3,376,745 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan 2/21 Loan  3M USD LIBOR+  3.75%  0.75%  4.76% 3/2/2028  2,756,929   2,747,321   2,460,559 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C 2/21 Loan  3M USD LIBOR+  3.75%  0.75%  4.76% 3/2/2028  87,464   87,101   78,061 
Neenah, Inc. Forest Products & Paper Term Loan B (03/21) Loan  1M USD LIBOR+  3.00%  0.50%  4.06% 4/6/2028  1,985,000   1,976,517   1,949,647 
NEW ERA CAP, LLC Consumer goods: Durable Term Loan (01/22) Loan  6M USD LIBOR+  6.00%  0.75%  6.75% 7/13/2027  3,769,521   3,768,472   3,694,131 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Term Loan Loan  1M USD LIBOR+  2.50%  0.00%  3.30% 9/18/2026  1,113,795   1,103,855   1,092,633 
Next Level Apparel, Inc. Retail Term Loan Loan  3M USD WIBOR+  5.50%  1.00%  6.54% 8/9/2024  1,712,840   1,705,670   1,678,584 
NM Z Parent Inc (Zep Inc) Chemicals, Plastics, & Rubber Term Loan Loan  12M USD LIBOR+  4.00%  1.00%  5.00% 8/9/2024  -   2,860   - 
NorthPole Newco S.a.r.l (b) Aerospace & Defense Term Loan Loan  Prime+  7.00%  0.00%  11.00% 3/3/2025  5,348,887   5,051,888   340,992 
NortonLifeLock Inc. High Tech Industries Term Loan B Loan  3M USD SOFR+  2.00%  0.50%  2.50% 1/28/2029  1,500,000   1,492,500   1,447,500 
Novae LLC Automotive Term Loan B Loan  1M USD SOFR+  5.00%  0.75%  5.87% 12/22/2028  1,555,556   1,540,962   1,505,000 
Novae LLC Automotive Delayed Draw Term Loan Loan  1M USD SOFR+  5.00%  0.75%  5.87% 12/22/2028  444,444   444,444   430,000 
Nuvei Technologies Corp. High Tech Industries US Term Loan Loan  1M USD LIBOR+  2.50%  0.50%  3.56% 9/29/2025  2,233,125   2,229,045   2,166,131 
Olaplex, Inc. Consumer goods: Non-durable Term Loan (2/22) Loan  3M USD SOFR+  3.75%  0.50%  4.80% 2/23/2029  1,000,000   997,730   967,500 
Organon & Co. Healthcare & Pharmaceuticals Term Loan USD Loan  3M USD LIBOR+  3.00%  0.50%  3.56% 6/2/2028  2,410,417   2,400,136   2,347,649 
Pacific Gas and Electric Company Utilities: Electric Term Loan Loan  1M USD LIBOR+  3.00%  0.50%  4.06% 6/18/2025  1,476,212   1,470,887   1,427,778 
PACTIV EVERGREEN GROUP HOLDINGS INC. Containers, Packaging & Glass Term Loan B Loan  1M USD LIBOR+  3.50%  0.50%  4.56% 9/20/2028  995,000   990,570   947,121 
Padagis LLC Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  4.75%  0.50%  5.72% 7/6/2028  941,176   932,844   907,059 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Term Loan 1/21 Loan  3M USD LIBOR+  4.50%  0.50%  5.74% 1/7/2028  496,250   493,272   476,152 
Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan  3M USD LIBOR+  3.75%  0.00%  4.21% 3/30/2027  490,232   481,809   467,049 
PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan  1M USD LIBOR+  2.50%  0.00%  3.56% 5/29/2026  809,038   806,545   786,790 
PEARLS (Netherlands) Bidco B.V. Chemicals, Plastics, & Rubber USD Term Loan (02/22) Loan  6M USD SOFR+  4.00%  0.50%  4.67% 2/28/2029  1,000,000   997,584   955,830 
PECF USS INTERMEDIATE HOLDING III CORPORATION Environmental Industries Term Loan B Loan  1M USD LIBOR+  4.25%  0.50%  5.31% 12/15/2028  99,750   99,548   93,812 


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 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC Healthcare & Pharmaceuticals Term Loan (12/22) Loan  6M USD LIBOR+  3.25%  0.50%  5.08% 12/29/2028  1,302,632   1,296,533   1,239,128 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (12/21) Loan  6M USD LIBOR+  3.25%  0.00%  4.92% 12/29/2028  69,079   69,079   59,457 
Penn National Gaming, Inc Hotel, Gaming & Leisure Term Loan B Loan  1M USD SOFR+  2.75%  0.50%  3.78% 5/3/2029  1,000,000   995,012   980,310 
Peraton Corp. Aerospace & Defense Term Loan B Loan  1M USD LIBOR+  3.75%  0.75%  4.81% 2/1/2028  5,347,837   5,327,869   5,175,369 
PHYSICIAN PARTNERS, LLC Healthcare & Pharmaceuticals Term Loan Loan  1M USD SOFR+  4.00%  0.50%  5.13% 12/23/2028  2,000,000   1,981,110   1,903,340 
Ping Identity Corporation High Tech Industries Term Loan B (11/21) Loan  1M USD SOFR+  3.75%  0.50%  4.88% 11/22/2028  1,000,000   995,353   972,500 
Pitney Bowes Inc Services: Business Term Loan B Loan  1M USD LIBOR+  4.00%  0.00%  5.06% 3/17/2028  3,970,000   3,941,783   3,771,500 
Plastipak Holdings Inc. Containers, Packaging & Glass Term Loan B (11/21) Loan  1M USD LIBOR+  2.50%  0.50%  3.31% 12/1/2028  1,936,176   1,927,213   1,869,011 
Playtika Holding Corp. High Tech Industries Term Loan B (3/21) Loan  1M USD LIBOR+  2.75%  0.00%  3.81% 3/13/2028  4,455,000   4,446,544   4,261,965 
PMHC II, INC. Chemicals, Plastics, & Rubber Term Loan (02/22) Loan  3M USD SOFR+  4.25%  0.50%  5.29% 4/21/2029  2,000,000   1,990,239   1,782,140 
PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan  6M USD LIBOR+  3.00%  0.75%  3.75% 12/29/2027  495,000   493,048   473,963 
Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan  1M USD LIBOR+  4.75%  0.75%  5.81% 2/12/2028  5,445,000   5,393,441   5,063,850 
Pre-Paid Legal Services, Inc. Services: Consumer Term Loan (12/21) Loan  1M USD LIBOR+  3.75%  0.50%  4.81% 12/15/2028  3,000,000   2,976,390   2,883,750 
Presidio, Inc. Services: Business Term Loan B (1/20) Loan  1M USD LIBOR+  3.50%  0.00%  4.56% 1/22/2027  491,250   490,551   475,692 
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  3,547,342   3,546,975   3,453,586 
PRIORITY HOLDINGS, LLC Services: Consumer Term Loan Loan  3M USD LIBOR+  5.75%  1.00%  7.32% 4/27/2027  2,977,500   2,951,315   2,921,672 
PriSo Acquisition Corporation Construction & Building Term Loan (01/21) Loan  3M USD LIBOR+  3.25%  0.75%  4.22% 12/28/2027  494,998   492,939   453,982 
Project Leopard Holdings Inc High Tech Industries Term Loan Loan  6M USD LIBOR+  4.50%  1.00%  5.50% 7/5/2024  493,750   493,167   488,566 
Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan  1M USD LIBOR+  3.00%  1.00%  4.06% 1/29/2025  480,150   479,222   455,245 
PUG LLC Services: Consumer Term Loan B (02/20) Loan  1M USD LIBOR+  3.50%  0.00%  4.56% 2/12/2027  483,838   482,163   458,436 
QUEST BORROWER LIMITED High Tech Industries Term Loan (1/22) Loan  3M USD SOFR+  4.25%  0.50%  5.47% 2/1/2029  2,000,000   1,981,173   1,843,340 
Rackspace Technology Global, Inc. High Tech Industries Term Loan (1/21) Loan  3M USD LIBOR+  2.75%  0.75%  3.50% 2/15/2028  1,995,000   1,968,750   1,897,744 
RealPage, Inc. High Tech Industries Term Loan (04/21) Loan  1M USD LIBOR+  3.25%  0.50%  4.31% 4/24/2028  995,000   992,993   952,603 
Renaissance Learning, Inc. Services: Consumer Term Loan (5/18) Loan  1M USD LIBOR+  3.25%  0.00%  4.31% 5/30/2025  2,961,449   2,940,104   2,851,638 
Rent-A-Center, Inc. Retail Term Loan B2 (9/21) Loan  1M USD LIBOR+  3.25%  0.50%  4.31% 2/17/2028  991,241   989,305   925,878 
Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan  6M USD LIBOR+  5.50%  1.00%  6.50% 12/20/2024  4,332,068   4,263,172   4,065,645 

 


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 Group Holdings Inc. Metals & Mining First Lien Loan  1M USD LIBOR+  3.25%  0.00%  3.33% 2/5/2026  3,482,500   3,464,650   3,457,252 
Robertshaw US Holding Corp. Consumer goods: Durable First Lien Loan  1M USD LIBOR+  3.50%  1.00%  4.50% 2/28/2025  967,500   966,183   928,500 
Rocket Software, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  4.25%  0.00%  4.33% 11/28/2025  2,920,127   2,911,583   2,854,424 
RP Crown Parent, LLC High Tech Industries First Lien Loan  1M USD LIBOR+  3.00%  1.00%  4.00% 1/31/2026  1,980,000   1,971,871   1,975,050 
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   5,595,826   5,629,170 
RV Retailer LLC Automotive First Lien Loan  3M USD LIBOR+  4.00%  0.75%  4.75% 2/8/2028  1,995,000   1,976,620   1,990,013 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  3.00%  0.75%  3.75% 9/1/2027  496,250   489,779   495,009 
S&S HOLDINGS LLC Services: Business First Lien Loan  3M USD LIBOR+  5.00%  0.50%  5.50% 3/10/2028  1,995,000   1,937,913   1,970,063 
Sally Holdings LLC Retail First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.34% 7/5/2024  753,409   751,563   749,642 
Samsonite International S.A. Consumer goods: Non-durable First Lien Loan  1M USD LIBOR+  3.00%  0.75%  3.75% 4/25/2025  992,500   969,477   985,056 
Savage Enterprises, LLC Energy: Oil & Gas First Lien Loan  1M USD LIBOR+  3.00%  0.00%  3.10% 8/1/2025  1,769,504   1,756,215   1,761,612 
Schweitzer-Mauduit International, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  3.75%  0.75%  4.50% 4/20/2028  3,000,000   2,983,145   2,992,500 
Signify Health, LLC Healthcare & Pharmaceuticals First Lien Loan  3M USD LIBOR+  3.25%  0.50%  3.75% 6/16/2028  500,000   497,522   498,280 
Sirius Computer Solutions, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.58% 7/1/2026  1,960,150   1,956,891   1,949,644 
Sitel Worldwide Corporation Services: Business First Lien Loan  3M USD LIBOR+  3.75%  0.50%  4.25% 7/28/2028  2,000,000   1,990,000   1,995,000 
SiteOne Landscape Supply, LLC Services: Business First Lien Loan  1M USD LIBOR+  2.00%  0.50%  2.50% 3/18/2028  997,500   995,066   995,006 
SMG US Midco 2, Inc. Services: Business First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.58% 1/23/2025  492,500   492,500   462,334 

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 
Resideo Funding Inc. Services: Consumer Term Loan (1/21) Loan  2M USD LIBOR+  2.25%  0.50%  3.36% 2/11/2028  1,485,000   1,482,733   1,443,242 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan  3M USD LIBOR+  4.25%  1.00%  5.26% 4/30/2024  3,073,181   3,067,499   2,911,839 
Restoration Hardware, Inc. Retail Term Loan (9/21) Loan  1M USD LIBOR+  2.50%  0.50%  3.56% 10/20/2028  3,488,734   3,481,525   3,192,192 
Reynolds Consumer Products LLC Containers, Packaging & Glass Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  2.81% 1/29/2027  1,288,182   1,287,280   1,251,958 
Reynolds Group Holdings Inc. Metals & Mining Term Loan B2 Loan  1M USD LIBOR+  3.25%  0.00%  4.31% 2/5/2026  3,456,250   3,441,637   3,285,304 
Robertshaw US Holding Corp. Consumer goods: Durable Term Loan B Loan  1M USD LIBOR+  3.50%  1.00%  4.56% 2/28/2025  960,000   959,144   777,600 
Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan  1M USD LIBOR+  4.25%  0.00%  5.31% 11/28/2025  2,897,722   2,890,966   2,789,579 
Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan  6M USD LIBOR+  3.50%  1.00%  5.00% 6/2/2025  5,592,385   5,558,475   5,277,813 
RV Retailer LLC Automotive Term Loan Loan  3M USD SOFR+  3.75%  0.75%  5.17% 2/8/2028  2,980,037   2,929,738   2,654,707 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+  3.00%  0.75%  4.13% 9/1/2027  1,489,968   1,476,874   1,458,768 
S&S HOLDINGS LLC Services: Business Term Loan Loan  3M USD LIBOR+  5.00%  0.50%  5.80% 3/10/2028  2,477,487   2,423,161   2,351,136 
Sally Holdings LLC Retail Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  3.31% 7/5/2024  745,909   744,577   726,329 
Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan  1M USD LIBOR+  3.00%  0.75%  4.06% 4/25/2025  934,981   917,510   910,437 
Schweitzer-Mauduit International, Inc. High Tech Industries Term Loan B Loan  1M USD LIBOR+  3.75%  0.75%  4.81% 4/20/2028  2,977,500   2,962,885   2,873,288 
Scientific Games Holdings LP Hotel, Gaming & Leisure Term Loan B Loan  3M USD SOFR+  3.50%  0.50%  4.18% 4/4/2029  500,000   498,804   478,930 
SETANTA AIRCRAFT LEASING DAC Aerospace & Defense Term Loan Loan  3M USD LIBOR+  2.00%  0.00%  3.01% 11/2/2028  1,000,000   997,767   969,750 
Signify Health, LLC Healthcare & Pharmaceuticals Term Loan B (6/21) Loan  3M USD LIBOR+  3.25%  0.50%  4.26% 6/16/2028  497,500   495,314   476,356 
Sitel Worldwide Corporation Services: Business USD Term Loan (7/21) Loan  1M USD LIBOR+  3.75%  0.50%  4.81% 8/28/2028  1,990,000   1,981,141   1,935,275 
SiteOne Landscape Supply, LLC Services: Business Term Loan (3/21) Loan  1M USD LIBOR+  2.00%  0.50%  3.06% 3/18/2028  783,790   782,151   770,724 
SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan  1M USD LIBOR+  2.50%  0.00%  3.56% 1/23/2025  488,750   488,750   467,367 
Sotheby’s Services: Business Term Loan (7/21) Loan  3M USD LIBOR+  4.50%  0.50%  5.54% 1/15/2027  3,248,290   3,201,631   3,148,145 
Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber Term Loan (04/21) Loan  1M USD LIBOR+  3.50%  0.75%  4.30% 8/2/2028  1,995,000   1,986,227   1,935,150 
Specialty Pharma III Inc. Services: Business Term Loan Loan  1M USD LIBOR+  4.25%  0.75%  5.01% 3/31/2028  1,990,000   1,973,128   1,900,450 
Spectrum Brands, Inc. Consumer goods: Durable Term Loan (2/21) Loan  1M USD LIBOR+  2.00%  0.50%  3.06% 3/3/2028  495,000   493,985   478,086 
Spin Holdco, Inc. Services: Consumer Term Loan 3/21 Loan  3M USD LIBOR+  4.00%  0.75%  4.75% 3/4/2028  2,970,000   2,955,317   2,825,747 
SRAM, LLC Consumer goods: Durable Term Loan (05/21) Loan  6M USD LIBOR+  2.75%  0.50%  3.25% 5/12/2028  3,436,364   3,431,556   3,303,205 

 


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
Sotheby’s Services: Business First Lien Loan  2M USD LIBOR+  4.50%  0.50%  5.00% 1/15/2027  3,272,836   3,219,166   3,279,644 
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   1,990,090   1,998,760 
Specialty Pharma III Inc. Services: Business First Lien Loan  1M USD LIBOR+  4.50%  0.75%  5.25% 2/24/2028  2,000,000   1,980,912   1,987,500 
Spectrum Brands, Inc. Consumer goods: Durable First Lien Loan  3M USD LIBOR+  2.00%  0.50%  2.50% 3/3/2028  498,750   497,579   496,570 
Spin Holdco, Inc. Services: Consumer First Lien Loan  3M USD LIBOR+  4.00%  0.75%  4.75% 3/4/2028  2,992,500   2,975,641   2,993,996 
SRAM, LLC Consumer goods: Durable First Lien Loan  3M USD LIBOR+  2.75%  0.50%  3.25% 5/12/2028  3,883,640   3,877,332   3,862,590 
SS&C Technologies, Inc. Services: Business First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.83% 4/16/2025  207,770   207,482   204,487 
SS&C Technologies, Inc. Services: Business First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.83% 4/16/2025  160,007   159,788   157,479 
SS&C Technologies, Inc. Services: Business First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.83% 4/16/2025  484,556   483,842   477,564 
STANDARD INDUSTRIES INC. Construction & Building First Lien Loan  3M USD LIBOR+  2.50%  0.50%  3.00% 8/5/2028  1,000,000   990,000   996,790 
Staples, Inc. Wholesale First Lien Loan  3M USD LIBOR+  5.00%  0.00%  5.13% 4/16/2026  4,409,015   4,275,937   4,160,390 
Stars Group Inc. (The) Hotel, Gaming & Leisure First Lien Loan  3M USD LIBOR+  2.25%  0.00%  2.37% 7/21/2026  2,000,000   1,995,243   1,988,220 
Storable, Inc High Tech Industries First Lien Loan  3M USD LIBOR+  3.25%  0.50%  3.75% 4/17/2028  500,000   498,840   497,290 
Sylvamo Corporation Forest Products & Paper First Lien Loan  3M USD LIBOR+  4.50%  0.50%  5.00% 8/18/2028  1,200,000   1,188,000   1,198,500 
Syncsort Incorporated High Tech Industries First Lien Loan  3M USD LIBOR+  4.25%  0.75%  5.00% 4/23/2028  2,000,000   1,990,268   1,993,580 
Tenable Holdings, Inc. Services: Business First Lien Loan  6M USD LIBOR+  2.75%  0.50%  3.25% 6/30/2028  1,000,000   997,514   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  4,451,174   4,368,097   4,399,985 

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 
SS&C Technologies, Inc. Services: Business Term Loan B3 Loan  1M USD LIBOR+  1.75%  0.00%  2.81% 4/16/2025  189,651   189,447   184,081 
SS&C Technologies, Inc. Services: Business Term Loan B4 Loan  1M USD LIBOR+  1.75%  0.00%  2.81% 4/16/2025  153,954   153,791   149,433 
SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan  1M USD LIBOR+  1.75%  0.00%  2.81% 4/16/2025  476,310   475,764   462,392 
STANDARD INDUSTRIES INC. Construction & Building Term Loan B Loan  6M USD LIBOR+  2.50%  0.50%  3.79% 9/22/2028  637,750   631,998   622,514 
Staples, Inc. Wholesale Term Loan (03/19) Loan  3M USD LIBOR+  5.00%  0.00%  6.29% 4/16/2026  4,375,186   4,261,365   3,983,257 
Stars Group Inc. (The) Hotel, Gaming & Leisure Term Loan Loan  3M USD LIBOR+  2.25%  0.00%  3.26% 7/21/2026  1,990,000   1,986,246   1,940,608 
Storable, Inc High Tech Industries Term Loan B Loan  1M USD SOFR+  3.50%  0.50%  4.53% 4/17/2028  498,750   497,762   477,139 
Superannuation & Investments US LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  3.75%  0.50%  4.81% 12/1/2028  997,500   988,251   958,598 
Sylvamo Corporation Forest Products & Paper Term Loan Loan  1M USD LIBOR+  4.50%  0.50%  5.56% 8/18/2028  946,667   938,084   904,067 
Syncsort Incorporated High Tech Industries Term Loan B (10/21) Loan  3M USD LIBOR+  4.00%  0.75%  5.18% 4/24/2028  2,488,747   2,487,629   2,370,531 
Ta TT Buyer LLC Media: Broadcasting & Subscription Term Loan 3/22 Loan  3M USD SOFR+  5.25%  0.50%  5.88% 4/2/2029  1,000,000   990,084   975,000 
Tenable Holdings, Inc. Services: Business Term Loan B (6/21) Loan  6M USD LIBOR+  2.75%  0.50%  3.27% 7/7/2028  997,500   995,283   957,600 
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+  5.25%  1.00%  6.31% 7/15/2025  4,417,195   4,349,760   4,233,131 
Tenneco Inc Capital Equipment Term Loan B Loan  1M USD LIBOR+  3.00%  0.00%  4.06% 10/1/2025  1,451,250   1,444,159   1,377,788 
Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  4.00%  1.00%  5.06% 9/27/2024  1,915,000   1,913,605   1,790,525 
The Dun & Bradstreet Corporation Services: Business Term Loan Loan  1M USD LIBOR+  3.25%  0.00%  4.27% 2/6/2026  997,475   996,275   965,805 
The Dun & Bradstreet Corporation Services: Business Term Loan B Loan  1M USD SOFR+  3.25%  0.00%  4.23% 1/18/2029  250,000   248,238   241,875 
THE KNOT WORLDWIDE INC. Services: Consumer Term Loan (1/22) Loan  1M USD SOFR+  4.50%  0.00%  5.63% 12/19/2025  4,869,796   4,864,098   4,760,226 
Thor Industries, Inc. Automotive USD Term Loan (3/21) Loan  1M USD LIBOR+  3.00%  0.00%  4.06% 2/1/2026  2,249,532   2,213,935   2,203,147 
Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan  1M USD LIBOR+  3.50%  0.75%  4.56% 8/18/2027  493,750   488,127   466,594 
Trans Union LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  2.25%  0.50%  3.31% 12/1/2028  868,468   866,495   845,670 
Transdigm, Inc. Aerospace & Defense Term Loan G (02/20) Loan  1M USD LIBOR+  2.25%  0.00%  3.31% 8/22/2024  4,013,901   4,015,755   3,915,360 
Travel Leaders Group, LLC Hotel, Gaming & Leisure Term Loan B (08/18) Loan  1M USD LIBOR+  4.00%  0.00%  5.06% 1/25/2024  2,406,250   2,405,629   2,156,602 
TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco Term Loan (03/21) Loan  3M USD LIBOR+  3.50%  0.50%  4.51% 3/31/2028  1,488,751   1,482,482   1,371,824 
Tronox Finance LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+  2.25%  0.00%  3.31% 3/10/2028  346,923   346,204   335,214 
TruGreen Limited Partnership Services: Consumer Term Loan Loan  1M USD LIBOR+  4.00%  0.75%  5.06% 10/29/2027  961,806   955,685   923,333 


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 
Uber Technologies, Inc. Transportation: Consumer Term Loan B (2/21) Loan  3M USD LIBOR+  3.50%  0.00%  5.07% 2/25/2027  3,937,527   3,901,174   3,817,983 
Ultra Clean Holdings, Inc. High Tech Industries Incremental Term Loan 3/21 Loan  1M USD LIBOR+  3.75%  0.00%  4.51% 8/27/2025  877,955   874,681   863,688 
Unimin Corporation Metals & Mining Term Loan (12/20) Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 7/31/2026  496,815   472,747   475,079 
United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+  3.25%  0.00%  4.31% 10/22/2025  1,540,259   1,484,910   1,504,649 
United Road Services Inc. Transportation: Cargo Term Loan (10/17) Loan  6M USD LIBOR+  5.75%  1.00%  7.32% 9/1/2024  912,927   908,180   647,183 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/21) Loan  1M USD LIBOR+  3.25%  0.75%  4.31% 3/15/2026  2,465,278   2,459,054   2,388,238 
Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+  3.00%  0.00%  4.06% 1/20/2028  1,842,457   1,840,030   1,762,771 
Vaco Holdings, LLC Services: Business Term Loan (01/22) Loan  1M USD SOFR+  5.00%  0.75%  5.80% 1/19/2029  249,375   248,243   241,477 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan  3M USD LIBOR+  4.00%  0.00%  5.52% 8/20/2025  1,378,747   1,374,159   1,223,638 
Vertex Aerospace Services Corp Aerospace & Defense Term Loan (10/21) Loan  1M USD LIBOR+  4.00%  0.75%  5.06% 12/6/2028  1,000,000   995,418   970,499 
VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan (01/22) Loan  1M USD SOFR+  3.00%  0.50%  3.88% 1/12/2029  3,100,888   3,092,966   2,984,604 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (9/21) Loan  1M USD LIBOR+  2.25%  0.00%  3.05% 9/28/2028  2,985,000   2,976,012   2,876,793 
Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  2.64% 12/31/2025  904,636   904,207   878,111 
Vizient, Inc Healthcare & Pharmaceuticals Term Loan 4/22 Loan  1M USD SOFR+  2.25%  0.50%  3.13% 4/28/2029  500,000   494,999   497,969 
VM Consolidated, Inc. Construction & Building Term Loan B (3/21) Loan  6M USD LIBOR+  3.25%  0.00%  3.60% 3/19/2028  2,333,435   2,330,474   2,269,264 
Vouvray US Finance LLC High Tech Industries Term Loan Loan  1M USD LIBOR+  3.00%  1.00%  4.06% 3/11/2024  475,000   474,999   382,255 

 


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  1,462,500   1,453,601   1,446,047 
Ten-X, LLC Banking, Finance, Insurance & Real Estate First Lien Loan  1M USD LIBOR+  4.00%  1.00%  5.00% 9/27/2024  1,930,000   1,928,329   1,854,402 
The Octave Music Group, Inc (Touchtunes) Services: Business First Lien Loan  1M USD LIBOR+  5.25%  1.00%  6.25% 5/29/2025  3,827,586   3,796,827   3,741,466 
Thor Industries, Inc. Automotive First Lien Loan  1M USD LIBOR+  3.00%  0.00%  3.13% 2/1/2026  2,935,080   2,879,796   2,931,411 
Tosca Services, LLC Containers, Packaging & Glass First Lien Loan  1M USD LIBOR+  3.50%  0.75%  4.25% 8/18/2027  497,500   491,076   496,256 
Transdigm, Inc. Aerospace & Defense First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.33% 8/22/2024  4,044,699   4,047,526   3,986,576 
Travel Leaders Group, LLC Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  4.00%  0.00%  4.08% 1/25/2024  2,425,000   2,423,392   2,243,125 
TRC Companies, Inc. Services: Business First Lien Loan  1M USD LIBOR+  3.50%  1.00%  4.50% 6/21/2024  3,315,141   3,308,471   3,300,654 
TRC Companies, Inc. Services: Business First Lien Loan  1M USD LIBOR+  4.50%  0.75%  5.25% 6/21/2024  2,479,433   2,469,738   2,460,837 
TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco First Lien Loan  3M USD LIBOR+  3.50%  0.50%  4.00% 3/31/2028  1,500,000   1,492,885   1,488,915 
Tronox Pigments (Netherlands) B.V. Chemicals, Plastics, & Rubber First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.33% 3/10/2028  434,231   433,192   429,550 
TruGreen Limited Partnership Services: Consumer First Lien Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 10/29/2027  969,110   962,066   970,021 
Twin River Worldwide Holdings, Inc. Hotel, Gaming & Leisure First Lien Loan  3M USD LIBOR+  2.75%  0.00%  2.90% 5/10/2026  980,000   976,532   974,492 
Uber Technologies, Inc. Transportation: Consumer First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.58% 2/25/2027  3,968,777   3,926,887   3,955,005 
Ultra Clean Holdings, Inc. High Tech Industries First Lien Loan  1M USD LIBOR+  3.75%  0.00%  3.83% 8/27/2025  947,677   943,289   947,677 
Unimin Corporation Metals & Mining First Lien Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 7/31/2026  496,815   469,014   490,252 
United Natural Foods, Inc Beverage, Food & Tobacco First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.58% 10/22/2025  1,914,066   1,831,470   1,905,702 

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%  3.18% 1/20/2028  1,250,000   1,249,776   1,212,762 
Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries Term Loan (3/18) Loan  1M USD LIBOR+  3.75%  1.00%  4.75% 3/15/2025  488,550   487,437   437,099 
Watlow Electric Manufacturing Company High Tech Industries Term Loan B Loan  1M USD LIBOR+  3.75%  0.50%  4.81% 3/2/2028  2,475,000   2,464,334   2,374,464 
West Corporation Telecommunications Term Loan B (Olympus Merger) Loan  1M USD LIBOR+  4.00%  1.00%  5.06% 10/10/2024  1,066,719   1,032,279   953,016 
West Corporation Telecommunications Term Loan B Loan  1M USD LIBOR+  3.50%  1.00%  4.56% 10/10/2024  2,552,943   2,519,949   2,265,737 
WEX Inc. Services: Business Term Loan B (3/21) Loan  1M USD LIBOR+  2.25%  0.00%  3.31% 3/31/2028  2,977,481   2,966,791   2,890,628 
WildBrain Ltd. Media: Diversified & Production Term Loan Loan  1M USD LIBOR+  4.25%  0.75%  5.31% 3/27/2028  1,980,000   1,946,129   1,894,207 
WP CITYMD BIDCO LLC Services: Consumer Term Loan B Loan  6M USD LIBOR+  3.25%  0.50%  3.75% 12/22/2028  7,424,013   7,400,283   7,156,748 
Xperi Corporation High Tech Industries Term Loan Loan  1M USD LIBOR+  3.50%  0.00%  4.56% 6/8/2028  2,706,468   2,695,714   2,612,878 
Zayo Group, LLC Telecommunications Term Loan 4/22 Loan  3M USD SOFR+  4.25%  0.50%  4.75% 3/9/2027  1,000,000   975,000   955,940 
ZEBRA BUYER LLC Banking, Finance, Insurance & Real Estate Term Loan 4/21 Loan  3M USD LIBOR+  3.25%  0.50%  4.31% 11/1/2028  887,097   883,218   859,748 
Zekelman Industries, Inc. Metals & Mining Term Loan (01/20) Loan  1M USD LIBOR+  2.00%  0.00%  2.93% 1/25/2027  967,053   967,053   939,492 
Zodiac Pool Solutions Consumer goods: Durable Term Loan (1/22) Loan  1M USD SOFR+  2.00%  0.50%  3.03% 1/29/2029  498,750   497,611   485,553 
                                   
                            $639,686,300  $600,926,629 

 


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
United Road Services Inc. Transportation: Cargo First Lien Loan  6M USD LIBOR+  5.75%  1.00%  6.75% 9/1/2024  936,674   930,039   845,742 
Univar Inc. Chemicals, Plastics, & Rubber First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.08% 5/26/2028  2,000,000   1,990,155   1,982,920 
Univision Communications Inc. Media: Broadcasting & Subscription First Lien Loan  1M USD LIBOR+  3.25%  0.75%  4.00% 3/15/2026  2,483,907   2,476,285   2,475,760 
US Ecology, Inc. Environmental Industries First Lien Loan  1M USD LIBOR+  2.50%  0.00%  2.58% 11/2/2026  492,500   491,656   491,165 
Utz Quality Foods, LLC Beverage, Food & Tobacco First Lien Loan  1M USD LIBOR+  3.00%  0.00%  3.08% 1/20/2028  348,874   348,110   347,216 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD LIBOR+  4.00%  0.00%  4.13% 8/20/2025  1,389,462   1,383,630   1,338,344 
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   3,092,108   3,081,508 
Virence Intermediate Holdings LLC (Athenahealth / VVC Holding) Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  4.25%  0.00%  4.35% 2/11/2026  2,957,588   2,931,115   2,964,981 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate First Lien Loan  6M USD LIBOR+  2.25%  0.75%  3.00% 6/3/2024  2,267,826   2,267,588   2,262,157 
Vistra Energy Corp Utilities: Electric First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 12/31/2025  912,257   911,666   900,206 
Vizient, Inc Healthcare & Pharmaceuticals First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.08% 5/6/2026  488,750   487,956   481,570 
VM Consolidated, Inc. Construction & Building First Lien Loan  3M USD LIBOR+  3.25%  0.00%  3.42% 3/19/2028  2,351,112   2,347,590   2,338,369 
Vouvray US Finance LLC High Tech Industries First Lien Loan  1M USD LIBOR+  3.00%  1.00%  4.00% 3/11/2024  478,750   478,751   421,697 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure First Lien Loan  1M USD LIBOR+  2.13%  0.00%  2.21% 1/20/2028  1,250,000   1,249,729   1,233,925 
Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries First Lien Loan  1M USD LIBOR+  3.75%  1.00%  4.75% 3/15/2025  492,366   490,579   488,674 

 


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  2,493,750   2,481,810   2,490,633 
WeddingWire, Inc. Services: Consumer First Lien Loan  2M USD LIBOR+  4.50%  0.00%  4.61% 12/19/2025  4,894,898   4,887,225   4,884,717 
West Corporation Telecommunications First Lien Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 10/10/2024  1,086,078   1,040,885   1,048,684 
West Corporation Telecommunications First Lien Loan  3M USD LIBOR+  3.50%  1.00%  4.50% 10/10/2024  2,599,274   2,555,684   2,489,221 
Western Digital Corporation High Tech Industries First Lien Loan  1M USD LIBOR+  1.75%  0.00%  1.84% 4/29/2023  503,135   497,827   502,632 
WEX Inc. Services: Business First Lien Loan  1M USD LIBOR+  2.25%  0.00%  2.33% 3/31/2028  1,995,000   1,985,414   1,975,609 
WildBrain Ltd. Media: Diversified & Production First Lien Loan  1M USD LIBOR+  4.25%  0.75%  5.00% 3/27/2028  1,995,000   1,956,938   1,985,863 
Wirepath LLC Consumer goods: Non-durable First Lien Loan  3M USD LIBOR+  4.00%  0.00%  4.15% 8/5/2024  2,910,231   2,894,720   2,881,128 
WP CITYMD BIDCO LLC Services: Consumer First Lien Loan  6M USD LIBOR+  3.75%  0.75%  4.50% 8/13/2026  5,437,675   5,412,891   5,455,347 
Xperi Corporation High Tech Industries First Lien Loan  1M USD LIBOR+  3.50%  0.00%  3.58% 6/8/2028  2,811,915   2,797,959   2,787,310 
ZEBRA BUYER LLC Banking, Finance, Insurance & Real Estate First Lien Loan  3M USD LIBOR+  3.25%  0.50%  3.75% 4/22/2028  1,000,000   995,000   1,001,250 
Zekelman Industries, Inc. Metals & Mining First Lien Loan  1M USD LIBOR+  2.00%  0.00%  2.09% 1/25/2027  970,775   970,775   956,698 
                           $650,634,393  $646,261,753 

 Number of Shares Cost Fair Value Number of Shares Cost Fair
Value
Cash and cash equivalents                  
U.S. Bank Money Market (c)  11,897,501  $11,897,501  $11,897,501   8,708,940  $8,708,940  $8,708,940 
Total cash and cash equivalents  11,897,501  $11,897,501  $11,897,501   8,708,940  $8,708,940  $8,708,940 

 

(a)All or a portion of this investment has an unfunded commitment as of AugustMay 31, 20212022
(b)As of AugustMay 31, 2021,2022, 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 AugustMay 31, 2021.2022.
(d)Investments include Payment-in-Kind Interest.

 

LIBOR—London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

WIBOR - Warsaw Interbank Offered Rate

 

1M USD LIBOR—The 1 month USD LIBOR rate as of AugustMay 31, 20212022 was 0.08%1.12%.

2M USD LIBOR—The 2 month USD LIBOR rate as of AugustMay 31, 20212022 was 0.09%1.11%.

3M USD LIBOR—The 3 month USD LIBOR rate as of AugustMay 31, 20212022 was 0.11%1.63%.

6M USD LIBOR—The 6 month USD LIBOR rate as of AugustMay 31, 20212022 was 0.14%1.38%.

12M USD LIBOR - The 12 month USD LIBOR rate as of AugustMay 31, 20212022 was 0.22%0.99%.

6M3 PL WIBOR - The 3 month PL WIBOR rate as of AugustMay 31, 20212022 was 0.27%1.03%.

Daily SOFR- The daily SOFR rate as of May 31, 2022 was 0.79%.

1M SOFR - The 1 month SOFR rate as of May 31, 2022 was 1.13%.

3M SOFR - The 3 month SOFR rate as of May 31, 2022 was 0.80%.

Prime—The Prime Rate as of AugustMay 31, 20212022 was 3.25%.


Saratoga Investment Corp. CLO 2013-1, Ltd.

Schedule of Investments

February 28, 2021 2022

 

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  $362,443 
Fusion Connect Warrant Telecommunications Warrants Equity                            -  -   -   -   -   32,832   -   328 
J Jill Common Stock 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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
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 
Fusion Connect Warrant Telecommunications Warrants Equity  -  -   -   -  -  32,832   -   - 
J Jill Common Stock Retail Common stock Equity  -  -   -   -  -  2,107   -   33,691 
19TH HOLDINGS GOLF, LLC Consumer goods: Durable Term Loan Loan  3M USD SOFR+  3.25%  0.50%  3.75% 2/7/2029  500,000   497,530   493,750 
ADMI Corp. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+  2.75%  0.00%  2.96% 4/30/2025  1,930,276   1,925,558   1,892,886 
Adtalem Global Education Inc. Services: Business Term Loan B (02/21) Loan  1M USD LIBOR+  4.50%  0.75%  5.25% 8/11/2028  2,000,000   1,981,559   1,977,920 
Aegis Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  5.50%  1.00%  6.50% 5/9/2025  2,737,038   2,723,587   2,686,403 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (1/19) Loan  1M USD LIBOR+  2.75%  0.00%  2.88% 1/4/2026  1,483,686   1,476,852   1,470,704 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (09/20) Loan  1M USD LIBOR+  2.75%  0.75%  3.50% 1/4/2026  285,714   283,586   283,571 
AHEAD DB Holdings, LLC Services: Business Term Loan (04/21) Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 10/18/2027  2,985,000   2,885,411   2,962,135 
AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense Term Loan B (USD) Loan  6M USD LIBOR+  3.50%  1.00%  4.50% 1/18/2027  1,469,671   1,464,591   1,460,485 
AIS HoldCo, LLC Services: Business Term Loan Loan  3M USD LIBOR+  5.00%  0.00%  5.30% 8/15/2025  4,789,642   4,670,148   4,705,823 
Alchemy Copyrights, LLC Media: Diversified & Production Term Loan B Loan  1M USD LIBOR+  3.00%  0.50%  3.50% 3/10/2028  493,763   490,886   489,442 
Alchemy US Holdco 1, LLC Metals & Mining Term Loan Loan  1M USD LIBOR+  5.50%  0.00%  5.60% 10/10/2025  1,654,803   1,640,863   1,644,874 
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  248,125   247,608   245,217 
Alkermes, Inc. Healthcare & Pharmaceuticals Term Loan B (3/21) Loan  3M USD LIBOR+  2.50%  0.50%  3.00% 3/12/2026  2,147,859   2,130,749   2,110,271 
Allen Media, LLC Media: Diversified & Production Term Loan (7/21) Loan  3M USD LIBOR+  5.50%  0.00%  5.72% 2/10/2027  4,439,454   4,407,744   4,412,639 
Alliant Holdings I, Inc. Banking, Finance, Insurance & Real Estate Term Loan B4 Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 11/5/2027  997,500   996,393   987,944 
Allied Universal Holdco LLC Services: Business Term Loan 4/21 Loan  3M USD LIBOR+  3.75%  0.50%  4.25% 5/12/2028  1,995,000   1,985,516   1,966,412 
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   1,220,031   1,102,497 
Altium Packaging LLC Containers, Packaging & Glass Term Loan (01/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 1/29/2028  496,250   494,097   485,084 
American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan Loan  1M USD LIBOR+  4.50%  1.00%  5.50% 4/6/2024  3,012,861   3,011,323   3,011,355 
American Trailer World Corp Automotive Term Loan Loan  1M USD LIBOR+  3.75%  0.75%  4.50% 3/3/2028  1,990,000   1,984,442   1,954,558 
AmeriLife Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  4.00%  0.00%  4.11% 3/18/2027  1,976,415   1,967,087   1,956,651 

 


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 
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  1,980,006   1,957,163   1,946,900 
Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan  3M USD LIBOR+  3.75%  0.00%  3.97% 8/11/2025  967,500   964,919   832,253 
Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan  3M USD LIBOR+  2.75%  1.00%  3.75% 12/7/2023  475,113   474,420   406,882 
Anchor Packaging, LLC Containers, Packaging & Glass Term Loan B Loan  1M USD LIBOR+  4.00%  0.00%  4.21% 7/18/2026  987,342   979,469   972,532 
ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+  6.00%  0.75%  6.75% 11/19/2027  3,000,000   2,943,100   3,000,000 
AP Core Holdings II LLC High Tech Industries Term Loan B1 Loan  1M USD LIBOR+  5.50%  0.75%  6.25% 9/1/2027  1,975,000   1,947,406   1,965,125 
AP Core Holdings II LLC High Tech Industries Term Loan B2 Loan  1M USD LIBOR+  5.50%  0.75%  6.25% 9/1/2027  500,000   493,024   498,125 
APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan  1M USD LIBOR+  2.50%  0.00%  2.71% 10/1/2026  1,950,000   1,942,029   1,927,575 
APLP Holdings Limited Partnership Energy: Electricity Term Loan B (3/21) Loan  1M USD LIBOR+  3.75%  1.00%  4.75% 5/14/2027  828,378   821,051   826,655 
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  2,969,543   2,937,176   2,887,881 
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  992,500   983,643   982,575 
AppLovin Corporation High Tech Industries Term Loan B Loan  1M USD LIBOR+  3.25%  0.00%  3.46% 8/15/2025  989,796   989,796   982,066 
AppLovin Corporation High Tech Industries Term Loan (10/21) Loan  1M USD LIBOR+  3.00%  0.50%  3.50% 10/21/2028  1,496,250   1,492,669   1,481,288 
Aramark Corporation Services: Consumer Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  1.96% 1/15/2027  2,331,250   2,268,549   2,279,776 
Aramark Corporation Services: Consumer Term Loan B (4/21) Loan  1M USD LIBOR+  2.50%  0.00%  2.71% 4/1/2028  1,753,715   1,746,008   1,743,491 
ARC FALCON I INC. Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+  3.75%  0.50%  4.25% 9/23/2028  872,611   868,610   855,526 
ARC FALCON I INC. (a) Chemicals, Plastics, & Rubber Delayed Draw Term Loan Loan  N/A   N/A    N/A    N/A  9/22/2028  -   (601)  (2,494)
Arches Buyer Inc. Services: Consumer Term Loan B Loan  1M USD LIBOR+  3.25%  0.50%  3.75% 12/6/2027  1,500,000   1,490,625   1,473,570 
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   3,341,474   3,103,833 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan  1M USD LIBOR+  4.25%  0.00%  4.46% 10/1/2025  2,436,164   2,430,830   2,425,518 

 


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 
ASP BLADE HOLDINGS, INC. Capital Equipment Term Loan Loan  1M USD LIBOR+  4.00%  0.50%  4.50% 10/7/2028  100,000   99,530   99,542 
Asplundh Tree Expert, LLC Services: Business Term Loan 2/21 Loan  1M USD LIBOR+  1.75%  0.00%  1.96% 9/7/2027  987,500   983,579   973,458 
AssuredPartners Capital, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (2/20) Loan  1M USD LIBOR+  3.50%  0.00%  3.71% 2/12/2027  1,000,000   996,250   984,580 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Incremental Term Loan (7/21) Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 2/12/2027  995,006   995,006   978,837 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+  3.50%  0.50%  4.00% 2/12/2027  500,000   498,811   491,875 
ASTRO ONE ACQUISITION CORPORATION Consumer goods: Durable Term Loan Loan  1M USD LIBOR+  5.50%  0.75%  6.25% 9/15/2028  3,000,000   2,971,643   2,968,140 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B6 Loan  1M USD LIBOR+  3.13%  0.00%  3.33% 11/3/2023  266,824   266,095   264,767 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan  1M USD LIBOR+  3.25%  0.00%  3.46% 12/18/2026  2,995,112   2,984,120   2,939,882 
ATHENAHEALTH GROUP INC. Healthcare & Pharmaceuticals Term Loan B (2/22) Loan  1M USD SOFR+  3.50%  0.50%  4.00% 2/15/2029  1,282,609   1,276,322   1,269,462 
ATHENAHEALTH GROUP INC. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (02/22) Loan  N/A   N/A    N/A    N/A  2/15/2029  -   -   (2,228)
Avast Software S.R.O. (Sybil Finance) High Tech Industries Term Loan (Sybil Software) Loan  3M USD LIBOR+  2.00%  0.00%  2.22% 3/22/2028  1,925,000   1,920,766   1,916,819 
Avaya, Inc. Telecommunications Term Loan B1 Loan  1M USD LIBOR+  4.25%  0.00%  4.44% 12/15/2027  1,755,766   1,747,367   1,739,859 
Avaya, Inc. Telecommunications Term Loan B-2 (2/21) Loan  1M USD LIBOR+  4.00%  0.00%  4.19% 12/15/2027  1,000,000   1,000,000   988,590 
Avison Young (Canada) Inc Services: Business Term Loan Loan  3M USD LIBOR+  5.75%  0.00%  5.97% 1/31/2026  3,405,995   3,370,219   3,371,935 
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   900,020   990,630 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 (7/21) Loan  1M USD LIBOR+  2.25%  0.50%  2.75% 12/1/2027  495,000   490,860   491,466 
AZURITY PHARMACEUTICALS, INC. Healthcare & Pharmaceuticals Term Loan B Loan  3M USD LIBOR+  6.00%  0.75%  6.75% 9/20/2027  500,000   485,751   495,000 
B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan  1M USD LIBOR+  2.50%  0.00%  2.71% 10/10/2026  706,458   701,732   701,605 

 


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 
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 
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 

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 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan  1M USD LIBOR+  1.75%  0.00%  1.96% 11/19/2026  1,470,000   1,438,969   1,440,968 
BAKELITE UK INTERMEDIATE LTD. Chemicals, Plastics, & Rubber Term Loan Loan  3M USD SOFR+  4.25%  0.00%  4.75% 2/1/2029  1,000,000   995,000   992,500 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 10/14/2027  1,238,775   1,225,981   1,222,522 
Belfor Holdings Inc. Services: Consumer Term Loan Loan  1M USD LIBOR+  3.75%  0.00%  3.96% 4/6/2026  248,092   247,897   246,851 
Belron Finance US LLC Automotive Term Loan B (3/21) Loan  3M USD LIBOR+  2.75%  0.50%  3.25% 4/13/2028  1,985,000   1,967,341   1,968,247 
Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Term Loan Loan  3M USD SOFR+  3.25%  0.50%  3.75% 1/24/2029  1,890,909   1,889,030   1,873,191 
Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Delayed Draw Term Loan Loan  3M USD SOFR+  3.25%  0.50%  3.75% 1/24/2029  109,091   109,048   108,069 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  2.46% 4/23/2026  989,873   983,805   967,601 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan (6/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 4/23/2026  1,480,053   1,470,897   1,464,335 
Blucora, Inc. Services: Consumer Term Loan (11/17) Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 5/22/2024  2,443,339   2,437,898   2,437,230 
Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber Term Loan (2/21) Loan  3M USD LIBOR+  2.50%  0.00%  2.72% 3/4/2028  992,500   990,307   983,200 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan  1M USD LIBOR+  2.00%  0.00%  2.21% 5/24/2027  1,470,049   1,461,460   1,442,486 
Boxer Parent Company, Inc. High Tech Industries Term Loan (2/21) Loan  3M USD LIBOR+  3.75%  0.00%  3.97% 10/2/2025  522,846   522,846   516,310 
Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  4.25%  0.00%  4.47% 9/5/2025  967,500   964,897   959,034 

 


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 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 
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 

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 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Term Loan B-3 Loan  1M USD LIBOR+  3.50%  0.00%  3.66% 3/5/2026  992,500   992,500   980,342 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan  1M USD LIBOR+  3.00%  0.00%  3.21% 1/22/2027  2,979,108   2,973,591   2,930,697 
Brookfield WEC Holdings Inc. Energy: Electricity Term Loan (1/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 8/1/2025  1,477,538   1,479,743   1,453,528 
Buckeye Partners, L.P. Utilities: Oil & Gas Term Loan (1/21) Loan  1M USD LIBOR+  2.25%  0.00%  2.36% 11/1/2026  1,970,088   1,958,262   1,946,565 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 3/31/2028  2,487,500   2,465,358   2,475,063 
Callaway Golf Company Retail Term Loan B Loan  1M USD LIBOR+  4.50%  0.00%  4.71% 1/4/2026  682,500   673,958   681,005 
CareerBuilder, LLC Services: Business Term Loan Loan  3M USD LIBOR+  6.75%  1.00%  7.75% 7/31/2023  5,393,388   5,246,921   4,159,650 
CareStream Health, Inc. Healthcare & Pharmaceuticals Term Loan Loan  6M USD LIBOR+  6.75%  1.00%  7.75% 5/8/2023  2,184,163   2,181,757   2,184,163 
Casa Systems, Inc Telecommunications Term Loan Loan  1M USD LIBOR+  4.00%  1.00%  5.00% 12/20/2023  1,391,125   1,387,217   1,349,391 
Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan  3M USD LIBOR+  3.75%  0.00%  3.97% 1/27/2027  1,980,130   1,968,915   1,934,864 
CBI BUYER, INC. Consumer goods: Durable Term Loan Loan  3M USD LIBOR+  3.25%  0.50%  3.75% 1/6/2028  995,000   992,948   963,906 
CCC Intelligent Solutions Inc. Services: Business Term Loan B Loan  3M USD LIBOR+  2.50%  0.50%  3.00% 9/16/2028  250,000   249,432   246,875 
CCI Buyer, Inc Telecommunications Term Loan Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 12/17/2027  248,125   246,017   245,257 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 3/5/2028  992,500   988,070   986,297 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+  5.50%  0.00%  5.71% 9/25/2025  2,425,000   2,412,003   2,371,456 
Cengage Learning, Inc. Media: Advertising, Printing & Publishing Term Loan B (6/21) Loan  6M USD LIBOR+  4.75%  1.00%  5.75% 7/14/2026  2,992,500   2,966,179   2,985,019 
CENTURI GROUP, INC. Construction & Building Term Loan B Loan  1M USD LIBOR+  2.50%  0.50%  3.00% 8/27/2028  931,998   923,210   923,647 

 


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 
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 
CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan  1M USD LIBOR+  2.25%  0.00%  2.46% 3/15/2027  3,929,899   3,924,411   3,823,045 
Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  1.96% 4/3/2025  915,661   880,331   896,780 
Churchill Downs Incorporated Hotel, Gaming & Leisure Term Loan B1 (3/21) Loan  1M USD LIBOR+  2.00%  0.00%  2.21% 3/17/2028  496,250   495,147   489,427 
CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing USD Term Loan Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 5/17/2028  995,000   986,097   987,538 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan  1M USD SOFR+  2.50%  0.00%  2.69% 2/2/2028  4,962,500   4,957,863   4,911,089 
Clarios Global LP Automotive Term Loan B1 Loan  1M USD LIBOR+  3.25%  0.00%  3.46% 4/30/2026  1,267,812   1,259,559   1,253,549 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B-1 (11/21) Loan  1M USD SOFR+  4.50%  0.50%  5.00% 8/9/2026  3,474,709   3,452,852   3,457,336 
Cole Haan Consumer goods: Non-durable Term Loan B Loan  3M USD LIBOR+  5.50%  0.00%  6.01% 2/7/2025  925,000   919,273   811,688 
Columbus McKinnon Corporation Capital Equipment Term Loan (4/21) Loan  3M USD LIBOR+  2.75%  0.50%  3.25% 5/14/2028  487,192   486,099   482,929 
Compass Power Generation, LLC Utilities: Electric Term Loan B (08/18) Loan  1M USD LIBOR+  3.50%  1.00%  4.50% 12/20/2024  1,707,152   1,704,898   1,686,120 
Conduent, Inc. Services: Business Term Loan B Loan  1M USD LIBOR+  4.25%  0.50%  4.75% 10/16/2028  1,000,000   990,409   990,310 
Connect Finco SARL Telecommunications Term Loan (1/21) Loan  1M USD LIBOR+  3.50%  1.00%  4.50% 12/11/2026  2,947,500   2,823,770   2,906,972 
Consolidated Communications, Inc. Telecommunications Term Loan B Loan  1M USD LIBOR+  3.50%  0.75%  4.25% 10/2/2027  714,005   705,262   704,187 
CORAL-US CO-BORROWER LLC Telecommunications Term Loan B-5 Loan  1M USD LIBOR+  2.25%  0.00%  2.44% 1/31/2028  4,000,000   3,986,739   3,914,280 
CoreCivic, Inc. Banking, Finance, Insurance & Real Estate Term Loan (12/19) Loan  1M USD LIBOR+  4.50%  1.00%  5.50% 12/18/2024  1,872,727   1,852,319   1,857,127 
Corelogic, Inc. Services: Business Term Loan (4/21) Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 6/2/2028  2,493,750   2,482,238   2,459,461 
Cortes NP Acquisition Corp (Vertiv) Capital Equipment Term Loan 2/21 Loan  1M USD LIBOR+  2.75%  0.00%  2.86% 3/2/2027  1,980,000   1,980,000   1,913,175 
COWEN INC. Banking, Finance, Insurance & Real Estate Term Loan Loan  6M USD LIBOR+  3.25%  0.00%  4.00% 3/24/2028  3,967,481   3,944,804   3,898,050 
CROCS INC Consumer goods: Durable Term Loan Loan  3M USD SOFR+  3.50%  0.50%  4.03% 1/26/2029  1,000,000   995,000   987,500 
Cross Financial Corp Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  6M USD LIBOR+  4.00%  0.75%  4.81% 9/15/2027  497,500   497,013   495,634 

 


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 
Crown Subsea Communications Holding, Inc. Construction & Building Term Loan (4/21) Loan  1M USD LIBOR+  4.75%  0.75%  5.50% 4/27/2027  2,404,110   2,382,506   2,402,114 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B (03/17) Loan  1M USD LIBOR+  2.25%  0.00%  2.44% 7/15/2025  1,934,010   1,919,923   1,873,263 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  2.44% 1/15/2026  485,000   484,359   469,946 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan  1M USD LIBOR+  2.50%  0.00%  2.69% 4/15/2027  490,000   490,000   475,035 
CTS Midco, LLC High Tech Industries Term Loan B Loan  3M USD LIBOR+  6.00%  1.00%  7.00% 11/2/2027  1,980,000   1,929,799   1,952,775 
Daseke Inc Transportation: Cargo Term Loan 2/21 Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 3/5/2028  1,488,750   1,482,131   1,473,863 
DCert Buyer, Inc. High Tech Industries Term Loan Loan  1M USD LIBOR+  4.00%  0.00%  4.21% 10/16/2026  1,484,887   1,484,887   1,477,046 
Dealer Tire, LLC Automotive Term Loan B-1 Loan  1M USD LIBOR+  4.25%  0.00%  4.46% 12/12/2025  2,940,000   2,935,370   2,926,211 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  2.46% 3/31/2025  6,315,361   6,274,862   6,148,699 
DexKo Global, Inc. (Dragon Merger) Automotive Term Loan (9/21) Loan  3M USD LIBOR+  3.75%  0.50%  4.25% 10/4/2028  840,000   836,119   828,450 
DexKo Global, Inc. (Dragon Merger) (a) Automotive Delayed Draw Term Loan (9/21) Loan  3M USD LIBOR+  3.75%  0.50%  4.25% 10/4/2028  130,905   134,906   132,706 
Diamond Sports Group, LLC (b) Media: Broadcasting & Subscription Term Loan Loan  Prime+  2.25%  0.00%  5.50% 8/24/2026  3,408,970   2,964,398   1,264,728 
DIRECTV FINANCING, LLC Media: Broadcasting & Subscription Term Loan Loan  3M USD LIBOR+  5.00%  0.75%  5.75% 8/2/2027  3,910,000   3,874,543   3,896,823 
Dispatch Acquisition Holdings, LLC Environmental Industries Term Loan B (3/21) Loan  3M USD LIBOR+  4.25%  0.75%  5.00% 3/25/2028  497,500   493,121   493,769 
DOMTAR CORPORATION Forest Products & Paper Term Loan 9/21 Loan  1M USD LIBOR+  5.50%  0.75%  6.25% 11/30/2028  840,645   832,557   837,140 
DRI HOLDING INC. Media: Advertising, Printing & Publishing Term Loan (12/21) Loan  1M USD LIBOR+  5.25%  0.50%  5.75% 12/15/2028  3,000,000   2,970,701   2,944,500 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan (2/21) Loan  1M USD LIBOR+  3.75%  0.00%  3.96% 3/1/2028  6,500,000   6,454,552   6,467,500 
DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan  1M USD LIBOR+  2.75%  0.00%  2.96% 8/21/2025  3,876,012   3,865,362   3,838,880 

 


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 
EAB Global, Inc. Services: Business Term Loan (08/21) Loan  6M USD LIBOR+  3.50%  0.50%  4.00% 8/16/2028  1,000,000   995,320   989,250 
Echo Global Logistics, Inc. Services: Business Term Loan Loan  1M USD LIBOR+  3.75%  0.50%  4.25% 11/23/2028  2,000,000   1,995,444   1,978,500 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  1M USD LIBOR+  3.50%  0.75%  4.25% 4/7/2028  2,210,766   2,203,181   2,190,603 
Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan  1M USD LIBOR+  4.25%  0.00%  4.46% 6/26/2025  1,903,934   1,903,934   1,874,575 
ELECTRON BIDCO INC. Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+  3.25%  0.50%  3.75% 11/1/2028  500,000   497,610   494,455 
ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan  1M USD LIBOR+  6.50%  0.00%  6.71% 12/14/2025  2,341,935   2,266,272   2,334,137 
Embecta Corp Healthcare & Pharmaceuticals Term Loan B Loan  3M USD SOFR+  3.00%  0.50%  3.50% 1/26/2029  750,000   746,250   742,688 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan (3/21) Loan  3M USD LIBOR+  5.00%  0.75%  5.75% 3/27/2028  2,347,110   2,338,792   2,264,421 
Endure Digital, Inc. High Tech Industries Term Loan B Loan  6M USD LIBOR+  3.50%  0.75%  4.25% 2/10/2028  2,487,500   2,476,721   2,394,219 
Enterprise Merger Sub Inc. Healthcare & Pharmaceuticals Term Loan B (06/18) Loan  1M USD LIBOR+  3.75%  0.00%  3.96% 10/10/2025  4,850,000   4,844,205   3,516,638 
Equiniti Group PLC Services: Business Term Loan B Loan  3M USD LIBOR+  4.50%  0.50%  5.00% 12/11/2028  500,000   495,392   497,085 
EyeCare Partners, LLC Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  3.75%  0.00%  3.97% 2/18/2027  1,967,959   1,967,595   1,945,820 
Finco I LLC Banking, Finance, Insurance & Real Estate Term Loan B (9/20) Loan  1M USD LIBOR+  2.50%  0.00%  2.71% 6/27/2025  3,793,978   3,787,136   3,743,708 
First Brands Group, LLC Automotive 1st Lien Term Loan (3/21) Loan  3M USD LIBOR+  5.00%  1.00%  6.00% 3/30/2027  4,962,500   4,891,260   4,925,281 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan  3M USD LIBOR+  2.50%  0.00%  2.72% 2/1/2027  5,200,639   5,184,839   5,109,628 
First Student Bidco Inc. Transportation: Consumer Term Loan B Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 7/21/2028  730,392   725,495   719,663 
First Student Bidco Inc. Transportation: Consumer Term Loan C Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 7/21/2028  269,608   267,800   265,647 
Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan  3M USD LIBOR+  3.25%  1.00%  4.25% 4/18/2025  1,330,058   1,325,610   1,235,292 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Term Loan (1/20) Loan  1M USD LIBOR+  2.00%  0.00%  2.21% 7/3/2024  494,872   494,493   488,122 

 


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 
Franchise Group, Inc. Services: Consumer First Out Term Loan Loan  3M USD LIBOR+  4.75%  0.75%  5.50% 3/10/2026  815,445   808,696   813,406 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  2.25%  0.00%  2.50% 8/1/2025  4,353,736   4,335,125   4,310,199 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan  1M USD LIBOR+  2.25%  0.00%  2.46% 1/29/2027  1,970,000   1,966,736   1,927,428 
Garrett LX III S.a r.l. Automotive Dollar Term Loan Loan  3M USD LIBOR+  3.25%  0.50%  3.75% 4/28/2028  1,496,250   1,489,649   1,470,066 
Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 12/31/2027  2,392,656   2,376,261   2,370,715 
General Nutrition Centers, Inc. (d) Retail Second Lien Term Loan Loan  1M USD LIBOR+  6.00%  0.00%  6.11% 10/7/2026  376,605   376,605   351,342 
Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan  3M USD LIBOR+  2.00%  0.00%  2.22% 12/30/2026  1,473,750   1,468,685   1,451,305 
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  3,922,786   3,717,418   3,615,828 
GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  2.50%  0.00%  2.71% 8/27/2025  3,775,280   3,197,869   3,684,031 
Gigamon Inc. Services: Business Term Loan B Loan  6M USD LIBOR+  3.50%  0.75%  4.25% 12/27/2024  2,900,607   2,887,935   2,889,730 
Global Business Travel (GBT) III Inc. Hotel, Gaming & Leisure Term Loan Loan  1M USD LIBOR+  2.50%  0.00%  2.71% 8/13/2025  4,353,750   4,353,165   4,065,314 
Global Tel*Link Corporation Telecommunications Term Loan B Loan  1M USD LIBOR+  4.25%  0.00%  4.46% 11/29/2025  4,938,649   4,748,435   4,788,959 
Go Daddy Operating Company, LLC High Tech Industries Term Loan 2/21 Loan  1M USD LIBOR+  2.00%  0.00%  2.21% 8/10/2027  1,979,899   1,979,899   1,948,657 
Go Wireless Holdings, Inc. Telecommunications Term Loan Loan  1M USD LIBOR+  6.50%  1.00%  7.50% 12/22/2024  2,846,753   2,824,354   2,828,961 
GOLDEN WEST PACKAGING GROUP LLC Forest Products & Paper Term Loan (11/21) Loan  1M USD LIBOR+  5.25%  0.75%  6.00% 11/23/2027  2,000,000   1,980,672   1,980,000 
Graham Packaging Co Inc Containers, Packaging & Glass Term Loan (2/21) Loan  1M USD LIBOR+  3.00%  0.75%  3.75% 8/7/2027  972,314   966,607   961,647 
Great Outdoors Group, LLC Retail Term Loan B2 Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 3/6/2028  990,019   985,574   984,079 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  3.25%  0.00%  3.46% 4/12/2024  2,844,231   2,829,223   2,826,454 
Griffon Corporation Consumer goods: Durable Term Loan B Loan  3M USD SOFR+  2.75%  0.50%  3.27% 1/24/2029  250,000   249,378   248,063 
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  3,870,741   3,867,368   3,845,581 

 


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 

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 
Harbor Freight Tools USA, Inc. Retail Term Loan B (06/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 10/19/2027  3,473,618   3,452,200   3,414,393 
Harland Clarke Holdings Corp. Media: Advertising, Printing & Publishing Term Loan (08/21) Loan  3M USD LIBOR+  7.75%  1.00%  8.75% 6/16/2026  1,262,555   1,260,655   1,121,149 
Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan  1M USD LIBOR+  3.75%  1.00%  4.75% 6/3/2024  226,716   226,626   218,895 
Hillman Group Inc. (The) (New) Consumer goods: Durable Term Loan B-1 (2/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 7/14/2028  3,514,399   3,506,291   3,471,101 
Hillman Group Inc. (The) (New) (a) Consumer goods: Durable Delayed Draw Term Loan (2/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 7/14/2028  67,342   67,342   56,947 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan  1M USD LIBOR+  2.50%  0.00%  2.71% 8/18/2025  3,550,000   3,541,488   3,505,625 
Holley Purchaser, Inc Automotive Term Loan (11/21) Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 11/17/2028  2,137,500   2,127,187   2,117,899 
Holley Purchaser, Inc (a) Automotive Delayed Draw Term Loan Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 11/17/2028  106,875   106,875   103,602 
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  2,174,152   2,164,312   2,148,192 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan (3/21) Loan  1M USD SOFR+  3.00%  0.00%  3.30% 3/17/2028  5,955,000   5,902,173   5,843,344 
Idera, Inc. High Tech Industries Term Loan (02/21) Loan  6M USD LIBOR+  3.75%  0.75%  4.50% 3/2/2028  4,860,079   4,848,914   4,811,478 
IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/21) Loan  1M USD LIBOR+  3.75%  0.50%  4.25% 11/1/2028  2,000,000   1,990,546   1,973,760 
INDY US BIDCO, LLC Services: Business Term Loan (11/21) Loan  1M USD LIBOR+  3.75%  0.00%  3.96% 3/6/2028  2,238,141   2,237,925   2,221,355 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber Term Loan (1/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.25% 1/29/2026  995,000   991,113   983,189 
Informatica Inc. High Tech Industries Term Loan B (10/21) Loan  1M USD LIBOR+  2.75%  0.00%  3.00% 10/27/2028  500,000   499,441   493,440 
Ingram Micro Inc. High Tech Industries Term Loan Loan  3M USD LIBOR+  3.50%  0.50%  4.00% 6/30/2028  1,492,500   1,478,709   1,483,172 
Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 5/1/2024  3,386,129   3,343,519   3,356,501 

 


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 
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 
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 
Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan  1M USD LIBOR+  3.75%  0.00%  3.96% 2/4/2027  491,250   489,509   487,973 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable Term Loan 4/21 Loan  3M USD LIBOR+  5.00%  0.75%  5.75% 4/7/2028  4,368,033   4,346,269   4,018,591 
INSTRUCTURE HOLDINGS, INC. High Tech Industries Term Loan B Loan  3M USD LIBOR+  2.75%  0.50%  3.27% 10/21/2028  500,000   498,797   492,500 
Isagenix International, LLC Beverage, Food & Tobacco Term Loan Loan  3M USD LIBOR+  5.75%  1.00%  6.75% 6/14/2025  2,427,552   2,401,608   1,775,900 
Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+  3.50%  0.00%  3.67% 3/14/2025  2,949,539   2,931,462   2,870,285 
J Jill Group, Inc Retail Priming Term Loan Loan  3M USD LIBOR+  5.00%  1.00%  6.00% 5/8/2024  1,574,907   1,573,650   1,409,542 
Jane Street Group Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan  1M USD LIBOR+  2.75%  0.00%  2.96% 1/31/2028  3,960,000   3,954,873   3,906,778 
Journey Personal Care Corp. Consumer goods: Non-durable Term Loan B Loan  3M USD LIBOR+  4.25%  0.75%  5.00% 3/1/2028  995,000   990,570   945,250 
JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan  3M USD LIBOR+  5.50%  1.00%  6.50% 11/15/2025  4,154,019   4,125,538   3,620,933 
KAR Auction Services, Inc. Automotive Term Loan B (09/19) Loan  1M USD LIBOR+  2.25%  0.00%  2.50% 9/19/2026  244,375   243,989   241,931 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Term Loan (1/21) (USD) Loan  6M USD LIBOR+  4.75%  0.50%  5.55% 2/12/2026  1,488,750   1,482,629   1,391,981 
Kodiak BP, LLC Construction & Building Term Loan Loan  3M USD LIBOR+  3.25%  0.75%  4.00% 3/13/2028  496,250   494,732   489,054 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan  3M USD LIBOR+  3.50%  0.50%  4.00% 9/1/2027  496,250   486,145   491,288 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Priority Exit PIK Term Loan (9/20) Loan  3M USD LIBOR+  6.00%  1.25%  7.25% 9/25/2023  299,904   288,132   300,054 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure 2nd Out Take Back PIK Term Loan Loan  3M USD LIBOR+  1.50%  1.25%  2.75% 9/25/2025  616,465   528,040   592,115 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Third Out PIK Term Loan Loan  3M USD LIBOR+  1.50%  1.25%  2.75% 9/25/2025  818,373   540,076   720,987 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan  Fixed  0.00%  0.00%  13.25% 9/27/2027  869,977   228,303   594,847 
Lealand Finance Company B.V. (d) Energy: Oil & Gas Exit Term Loan Loan  1M USD LIBOR+  1.00%  0.00%  1.21% 6/30/2025  334,753   334,753   155,422 

 


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 
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  475,000   474,352   449,616 
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   2,673,038   2,667,136 
Lightstone Generation LLC Energy: Electricity Term Loan B Loan  3M USD LIBOR+  3.75%  1.00%  4.75% 1/30/2024  1,322,520   1,321,594   1,099,212 
Lightstone Generation LLC Energy: Electricity Term Loan C Loan  3M USD LIBOR+  3.75%  1.00%  4.75% 1/30/2024  74,592   74,542   61,997 
Liquid Tech Solutions Holdings, LLC Services: Business Term Loan Loan  12M USD LIBOR+  4.75%  0.00%  5.50% 3/17/2028  995,000   991,612   991,269 
LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan  1M USD LIBOR+  4.75%  0.00%  4.89% 8/31/2027  3,960,000   3,897,792   3,888,482 
LOYALTY VENTURES INC. Services: Business Term Loan B Loan  1M USD LIBOR+  4.50%  0.50%  5.00% 11/3/2027  3,340,141   3,320,925   3,294,214 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan  1M USD LIBOR+  1.75%  0.00%  1.86% 11/11/2026  1,220,308   1,218,289   1,200,857 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD SOFR+  3.75%  0.50%  4.25% 10/16/2028  250,000   248,837   246,875 
MA FinanceCo LLC High Tech Industries Term Loan B4 Loan  3M USD LIBOR+  4.25%  1.00%  5.25% 6/5/2025  2,234,660   2,228,836   2,208,582 
MAGNITE, INC. Services: Business Term Loan Loan  6M USD LIBOR+  5.00%  0.75%  5.75% 4/28/2028  1,990,000   1,935,905   1,980,050 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan  1M USD LIBOR+  1.75%  0.00%  1.96% 8/29/2025  1,317,074   1,317,074   1,290,403 
Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan  3M USD LIBOR+  1.75%  0.00%  2.22% 2/15/2027  250,000   249,562   244,895 
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  4.50%  0.00%  4.71% 2/28/2025  3,392,071   3,369,794   3,375,823 
McAfee, LLC Services: Business Term Loan B Loan  Prime+  2.75%  0.00%  6.00% 9/30/2024  1,642,423   1,638,322   1,638,054 
McGraw-Hill Education, Inc. Media: Advertising, Printing & Publishing Term Loan (07/21) Loan  3M USD LIBOR+  4.75%  0.50%  5.26% 7/28/2028  1,995,000   1,976,108   1,975,050 
MedAssets Software Inter Hldg, Inc. High Tech Industries Term Loan (11/21) (USD) Loan  3M USD LIBOR+  4.00%  0.50%  4.50% 11/17/2028  500,000   492,500   496,250 
Mermaid Bidco Inc. High Tech Industries Term Loan B2 Loan  3M USD LIBOR+  3.75%  0.75%  4.50% 12/22/2027  993,756   990,577   976,366 
Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan  3M USD LIBOR+  2.50%  0.00%  2.72% 3/1/2026  3,381,477   3,366,633   3,341,677 
Michaels Companies Inc Retail Term Loan B (Magic Mergeco) Loan  3M USD LIBOR+  4.25%  0.75%  5.00% 4/8/2028  2,492,500   2,474,302   2,312,492 

 


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 
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 
Milk Specialties Company Beverage, Food & Tobacco Term Loan (6/21) Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 8/15/2025  3,801,560   3,774,075   3,782,552 
MJH Healthcare Holdings, LLC Healthcare & Pharmaceuticals Term Loan B (01/22) Loan  1M USD SOFR+  3.50%  0.50%  4.00% 1/28/2029  250,000   248,782   247,500 
MKS Instruments, Inc. High Tech Industries Term Loan B6 Loan  1M USD LIBOR+  1.75%  0.00%  1.96% 2/2/2026  868,529   863,296   862,562 
MRC Global Inc. Metals & Mining Term Loan B2 Loan  1M USD LIBOR+  3.00%  0.00%  3.21% 9/20/2024  351,484   351,116   348,848 
MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental) Loan  3M USD LIBOR+  3.75%  0.00%  3.97% 9/30/2024  2,842,097   2,812,930   2,765,730 
NAB Holdings, LLC (North American Bancard) Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan  1M USD SOFR+  3.00%  0.50%  3.50% 11/17/2028  3,000,000   2,992,613   2,950,710 
Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+  3.50%  0.00%  3.75% 11/14/2025  3,472,277   3,448,686   3,411,513 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan 2/21 Loan  1M USD LIBOR+  3.75%  0.75%  4.50% 3/2/2028  2,763,891   2,753,599   2,704,771 
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   87,078   85,593 
National Mentor Holdings, Inc. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan 2/21 Loan  N/A   N/A    N/A    N/A  3/2/2028  -   -   (2,758)
Neenah, Inc. Forest Products & Paper Term Loan B (03/21) Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 4/6/2028  1,990,000   1,981,133   1,960,150 
NEW ERA CAP, LLC Consumer goods: Durable Term Loan (01/22) Loan  6M USD LIBOR+  6.00%  0.75%  6.75% 7/13/2027  1,000,000   998,828   997,500 
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   1,103,364   1,107,146 
Next Level Apparel, Inc. Retail Term Loan Loan  3M USD WIBOR+  5.50%  1.00%  6.50% 8/9/2024  1,725,340   1,717,025   1,690,834 
NM Z Parent Inc (Zep Inc) Chemicals, Plastics, & Rubber Term Loan Loan  12M USD LIBOR+  4.00%  1.00%  5.00% 8/9/2024  871,151   869,399   842,838 
NorthPole Newco S.a.r.l (b), (d) Aerospace & Defense Term Loan Loan  3M USD LIBOR+  7.00%  0.00%  7.22% 3/3/2025  5,348,887   5,028,659   1,537,805 
NortonLifeLock Inc. High Tech Industries Term Loan B Loan  3M USD SOFR+  2.00%  0.50%  2.50% 1/28/2029  1,500,000   1,492,500   1,480,620 
Novae LLC Automotive Term Loan B Loan  1M USD SOFR+  5.00%  0.75%  5.75% 12/22/2028  1,555,556   1,540,210   1,540,000 

 


(a) All or a portion of this investment has an unfunded commitment as of 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 
Novae LLC (a) Automotive Delayed Draw Term Loan Loan  N/A   N/A    N/A    N/A  12/22/2028  -   -   (4,444)
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  987,555   983,296   983,437 
Nuvei Technologies Corp. High Tech Industries US Term Loan Loan  1M USD LIBOR+  2.50%  0.50%  3.00% 9/29/2025  2,238,750   2,234,198   2,210,766 
Olaplex, Inc. Consumer goods: Non-durable Term Loan (2/22) Loan  1M USD SOFR+  3.75%  0.50%  4.25% 2/23/2029  1,000,000   997,500   996,250 
Organon & Co. Healthcare & Pharmaceuticals Term Loan USD Loan  6M USD LIBOR+  3.00%  0.50%  3.50% 6/2/2028  2,410,417   2,399,629   2,397,617 
Pacific Gas and Electric Company Utilities: Electric Term Loan Loan  3M USD LIBOR+  3.00%  0.50%  3.50% 6/18/2025  1,479,969   1,474,197   1,449,999 
PACTIV EVERGREEN GROUP HOLDINGS INC. Containers, Packaging & Glass Term Loan B Loan  1M USD LIBOR+  3.50%  0.50%  4.00% 9/20/2028  997,500   992,792   984,473 
Padagis LLC Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  4.75%  0.50%  5.25% 7/6/2028  941,176   932,470   934,118 
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  497,500   494,346   493,520 
Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan  1M USD LIBOR+  3.75%  0.00%  3.96% 3/30/2027  491,473   482,640   486,804 
PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan  1M USD LIBOR+  2.50%  0.00%  2.71% 5/29/2026  809,038   806,361   800,188 
PEARLS (Netherlands) Bidco B.V. Chemicals, Plastics, & Rubber USD Term Loan (02/22) Loan  3M USD SOFR+  4.00%  0.50%  4.50% 2/4/2029  1,000,000   997,500   989,580 
PECF USS INTERMEDIATE HOLDING III CORPORATION Environmental Industries Term Loan B Loan  1M USD LIBOR+  4.25%  0.50%  4.75% 12/15/2028  100,000   99,777   99,391 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC Healthcare & Pharmaceuticals Term Loan (12/22) Loan  3M USD LIBOR+  3.50%  0.00%  3.84% 12/28/2028  1,302,632   1,296,159   1,291,234 

(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.

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 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (12/21) Loan  N/A   N/A    N/A    N/A  12/28/2028  -   -   (1,727)
Penn National Gaming Hotel, Gaming & Leisure Term Loan B-1 Loan  1M USD LIBOR+  2.25%  0.75%  3.00% 10/15/2025  1,762,675   1,715,292   1,746,370 
Peraton Corp. Aerospace & Defense Term Loan B Loan  1M USD LIBOR+  3.75%  0.75%  4.50% 2/1/2028  5,459,994   5,439,162   5,425,869 
PHYSICIAN PARTNERS, LLC Healthcare & Pharmaceuticals Term Loan Loan  1M USD SOFR+  4.00%  0.50%  4.50% 12/23/2028  2,000,000   1,980,245   1,985,000 
Ping Identity Corporation High Tech Industries Term Loan B (11/21) Loan  6M USD SOFR+  3.75%  0.50%  4.45% 11/22/2028  1,000,000   995,074   990,000 
Pitney Bowes Inc Services: Business Term Loan B Loan  1M USD LIBOR+  4.00%  0.00%  4.21% 3/17/2028  2,977,500   2,960,793   2,944,003 
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   3,515,981   3,504,837 
Plastipak Holdings Inc. Containers, Packaging & Glass Term Loan B (11/21) Loan  1M USD LIBOR+  2.50%  0.50%  3.00% 11/17/2028  2,000,000   1,990,299   1,974,380 
Playtika Holding Corp. High Tech Industries Term Loan B (3/21) Loan  1M USD LIBOR+  2.75%  0.00%  2.96% 3/13/2028  4,466,250   4,457,371   4,415,513 
PMHC II, INC. Chemicals, Plastics, & Rubber Term Loan (02/22) Loan  3M USD SOFR+  4.25%  0.50%  4.75% 2/2/2029  2,000,000   1,990,000   1,968,340 
PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan  6M USD LIBOR+  3.00%  0.75%  3.75% 12/29/2027  496,250   494,183   486,945 
Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan  1M USD LIBOR+  4.75%  0.75%  5.50% 2/12/2028  5,458,750   5,404,639   5,333,635 
Pre-Paid Legal Services, Inc. Services: Consumer Term Loan (12/21) Loan  3M USD LIBOR+  3.75%  0.50%  4.25% 12/15/2028  3,000,000   2,975,633   2,973,000 
Presidio, Inc. Services: Business Term Loan B (1/20) Loan  1M USD LIBOR+  3.50%  0.00%  3.71% 1/22/2027  492,500   491,700   488,038 
Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan  6M USD LIBOR+  2.75%  0.75%  3.50% 9/23/2026  3,556,300   3,553,818   3,513,837 
PRIORITY HOLDINGS, LLC Services: Consumer Term Loan Loan  1M USD LIBOR+  5.75%  1.00%  6.75% 4/27/2027  2,985,000   2,957,411   2,973,806 
PriSo Acquisition Corporation Construction & Building Term Loan (01/21) Loan  3M USD LIBOR+  3.25%  0.75%  4.00% 12/28/2027  496,248   494,100   487,832 
Project Leopard Holdings Inc High Tech Industries Term Loan Loan  6M USD LIBOR+  4.75%  1.00%  5.75% 7/5/2024  495,000   494,242   492,678 
Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan  1M USD LIBOR+  3.00%  1.00%  4.00% 1/29/2025  481,388   480,315   474,017 
PUG LLC Services: Consumer Term Loan B (02/20) Loan  1M USD LIBOR+  3.50%  0.00%  3.71% 2/12/2027  485,075   483,298   475,374 
QUEST BORROWER LIMITED High Tech Industries Term Loan (1/22) Loan  3M USD SOFR+  4.25%  0.50%  4.75% 1/19/2029  2,000,000   1,980,237   1,968,760 
Rackspace Technology Global, Inc. High Tech Industries Term Loan (1/21) Loan  1M USD LIBOR+  2.75%  0.75%  3.50% 2/15/2028  496,250   494,141   480,519 


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 
RealPage, Inc. High Tech Industries Term Loan (04/21) Loan  1M USD LIBOR+  3.25%  0.50%  3.75% 4/24/2028  997,500   995,328   985,720 
Renaissance Learning, Inc. Services: Consumer Term Loan (5/18) Loan  1M USD LIBOR+  3.25%  0.00%  3.46% 5/30/2025  2,969,141   2,946,381   2,922,496 
Rent-A-Center, Inc. Retail Term Loan B2 (9/21) Loan  1M USD LIBOR+  3.25%  0.50%  3.81% 2/17/2028  993,744   991,647   973,869 
Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan  6M USD LIBOR+  5.50%  1.00%  6.50% 12/20/2024  4,343,378   4,268,021   4,251,082 
Resideo Funding Inc. Services: Consumer Term Loan (1/21) Loan  1M USD LIBOR+  2.25%  0.50%  2.75% 2/11/2028  1,488,750   1,486,251   1,481,306 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan  3M USD LIBOR+  4.25%  1.00%  5.25% 4/30/2024  3,084,702   3,078,180   3,067,366 
Restoration Hardware, Inc. Retail Term Loan (9/21) Loan  3M USD LIBOR+  2.50%  0.50%  3.00% 10/20/2028  3,497,500   3,489,704   3,456,509 
Reynolds Consumer Products LLC Containers, Packaging & Glass Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  1.96% 1/29/2027  1,291,932   1,290,988   1,271,829 
Reynolds Group Holdings Inc. Metals & Mining Term Loan B2 Loan  1M USD LIBOR+  3.25%  0.00%  3.46% 2/5/2026  3,465,000   3,449,546   3,406,545 
Robertshaw US Holding Corp. Consumer goods: Durable Term Loan B Loan  6M USD LIBOR+  3.50%  1.00%  4.50% 2/28/2025  962,500   961,492   877,800 
Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan  1M USD LIBOR+  4.25%  0.00%  4.46% 11/28/2025  2,905,190   2,897,593   2,876,138 
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   5,601,072   5,592,185 
RV Retailer LLC Automotive Term Loan Loan  3M USD SOFR+  3.75%  0.75%  4.50% 2/8/2028  1,985,000   1,967,852   1,951,513 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  3.00%  0.75%  3.75% 9/1/2027  493,750   487,862   489,583 
S&S HOLDINGS LLC Services: Business Term Loan Loan  3M USD LIBOR+  5.00%  0.50%  5.50% 3/10/2028  2,483,744   2,427,454   2,458,906 
Sally Holdings LLC Retail Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  2.46% 7/5/2024  748,409   746,932   740,925 
Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan  1M USD LIBOR+  3.00%  0.75%  3.75% 4/25/2025  987,538   967,436   979,519 
Schweitzer-Mauduit International, Inc. High Tech Industries Term Loan B Loan  1M USD LIBOR+  3.75%  0.75%  4.50% 4/20/2028  2,985,000   2,969,212   2,895,450 
Scientific Games Holdings LP Hotel, Gaming & Leisure Term Loan B Loan  3M USD SOFR+  3.50%  0.50%  4.00% 2/3/2029  500,000   498,750   496,460 
SETANTA AIRCRAFT LEASING DAC Aerospace & Defense Term Loan Loan  3M USD LIBOR+  2.00%  0.00%  2.14% 11/2/2028  1,000,000   997,653   993,440 
Signify Health, LLC Healthcare & Pharmaceuticals Term Loan B (6/21) Loan  3M USD LIBOR+  3.25%  0.50%  3.75% 6/16/2028  498,750   496,482   492,206 
Sitel Worldwide Corporation Services: Business USD Term Loan (7/21) Loan  3M USD LIBOR+  3.75%  0.50%  4.25% 8/28/2028  1,995,000   1,985,688   1,981,294 


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 
SiteOne Landscape Supply, LLC Services: Business Term Loan (3/21) Loan  3M USD LIBOR+  2.00%  0.50%  2.50% 3/18/2028  785,769   784,048   780,528 
SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan  3M USD LIBOR+  2.50%  0.00%  2.80% 1/23/2025  490,000   490,000   472,238 
Sotheby’s Services: Business Term Loan (7/21) Loan  3M USD LIBOR+  4.50%  0.50%  5.00% 1/15/2027  3,256,472   3,207,096   3,240,190 
Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber Term Loan (04/21) Loan  1M USD LIBOR+  3.50%  0.75%  4.25% 8/2/2028  2,000,000   1,990,687   1,985,000 
Specialty Pharma III Inc. Services: Business Term Loan Loan  1M USD LIBOR+  4.50%  0.75%  5.25% 3/31/2028  1,995,000   1,977,135   1,975,050 
Spectrum Brands, Inc. Consumer goods: Durable Term Loan (2/21) Loan  3M USD LIBOR+  2.00%  0.50%  2.50% 3/3/2028  496,250   495,145   494,389 
Spin Holdco, Inc. Services: Consumer Term Loan 3/21 Loan  3M USD LIBOR+  4.00%  0.75%  4.75% 3/4/2028  2,977,500   2,962,439   2,958,474 
SRAM, LLC Consumer goods: Durable Term Loan (05/21) Loan  1M USD LIBOR+  2.75%  0.50%  3.26% 5/12/2028  3,600,000   3,594,517   3,571,488 
SS&C Technologies, Inc. Services: Business Term Loan B3 Loan  1M USD LIBOR+  1.75%  0.00%  1.96% 4/16/2025  190,170   189,956   186,819 
SS&C Technologies, Inc. Services: Business Term Loan B4 Loan  1M USD LIBOR+  1.75%  0.00%  1.96% 4/16/2025  154,375   154,203   151,655 
SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan  1M USD LIBOR+  1.75%  0.00%  1.96% 4/16/2025  477,615   477,001   469,376 
STANDARD INDUSTRIES INC. Construction & Building Term Loan B Loan  3M USD LIBOR+  2.50%  0.50%  3.00% 9/22/2028  640,250   634,225   637,503 
Staples, Inc. Wholesale Term Loan (03/19) Loan  3M USD LIBOR+  5.00%  0.00%  5.13% 4/16/2026  4,386,462   4,265,782   4,154,813 
Stars Group Inc. (The) Hotel, Gaming & Leisure Term Loan Loan  3M USD LIBOR+  2.25%  0.00%  2.47% 7/21/2026  1,995,000   1,990,864   1,972,776 
Storable, Inc High Tech Industries Term Loan B Loan  6M USD LIBOR+  3.25%  0.50%  3.75% 4/17/2028  500,000   498,861   494,375 
Superannuation & Investments US LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  3.75%  0.50%  4.25% 12/1/2028  1,000,000   990,274   995,940 
Sylvamo Corporation Forest Products & Paper Term Loan Loan  1M USD LIBOR+  4.50%  0.50%  5.00% 8/18/2028  1,093,333   1,082,992   1,085,133 
Syncsort Incorporated High Tech Industries Term Loan B (10/21) Loan  3M USD LIBOR+  4.00%  0.75%  4.75% 4/24/2028  2,495,000   2,493,770   2,465,684 
Syniverse Holdings, Inc. Telecommunications Term Loan Loan  3M USD SOFR+  4.25%  0.50%  4.75% 2/1/2029  500,000   495,000   499,375 
Tenable Holdings, Inc. Services: Business Term Loan B (6/21) Loan  6M USD LIBOR+  2.75%  0.50%  3.27% 7/7/2028  1,000,000   997,633   986,250 
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+  5.25%  1.00%  6.25% 7/15/2025  4,428,522   4,355,261   4,383,129 
Tenneco Inc Capital Equipment Term Loan B Loan  1M USD LIBOR+  3.00%  0.00%  3.21% 10/1/2025  1,455,000   1,447,215   1,444,088 
Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  4.00%  1.00%  5.00% 9/27/2024  1,920,000   1,918,652   1,881,600 
The Dun & Bradstreet Corporation Services: Business Term Loan Loan  1M USD LIBOR+  3.25%  0.00%  3.46% 2/6/2026  1,000,000   998,750   988,330 


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 
The Dun & Bradstreet Corporation Services: Business Term Loan B Loan  1M USD SOFR+  3.25%  0.00%  3.44% 1/5/2029  250,000   248,180   246,668 
THE KNOT WORLDWIDE INC. Services: Consumer Term Loan (1/22) Loan  1M USD SOFR+  4.50%  0.00%  4.67% 12/19/2025  4,869,796   4,863,346   4,829,231 
The Octave Music Group, Inc (Touchtunes) Services: Business Term Loan B Loan  1M USD LIBOR+  6.00%  1.00%  7.00% 5/29/2025  2,893,526   2,872,208   2,871,824 
Thor Industries, Inc. Automotive USD Term Loan (3/21) Loan  1M USD LIBOR+  3.00%  0.00%  3.25% 2/1/2026  2,810,435   2,763,310   2,797,563 
Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan  1M USD LIBOR+  3.50%  0.75%  4.25% 8/18/2027  495,000   489,079   487,575 
Trans Union LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  2.00%  0.50%  2.50% 12/1/2028  870,968   868,877   860,804 
Transdigm, Inc. Aerospace & Defense Term Loan G (02/20) Loan  1M USD LIBOR+  2.25%  0.00%  2.46% 8/22/2024  4,024,167   4,026,414   3,959,700 
Travel Leaders Group, LLC Hotel, Gaming & Leisure Term Loan B (08/18) Loan  1M USD LIBOR+  4.00%  0.00%  4.21% 1/25/2024  2,412,500   2,411,191   2,268,353 
TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco Term Loan (03/21) Loan  3M USD LIBOR+  3.50%  0.50%  4.00% 3/31/2028  1,492,500   1,485,884   1,454,352 
Tronox Pigments (Netherlands) B.V. Chemicals, Plastics, & Rubber Term Loan Loan  3M USD LIBOR+  2.25%  0.00%  2.47% 3/10/2028  346,923   346,183   341,719 
TruGreen Limited Partnership Services: Consumer Term Loan Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 10/29/2027  964,241   957,748   961,830 


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 
Uber Technologies, Inc. Transportation: Consumer Term Loan B (2/21) Loan  1M USD LIBOR+  3.50%  0.00%  3.71% 2/25/2027  3,947,943   3,909,627   3,905,740 
Ultra Clean Holdings, Inc. High Tech Industries Incremental Term Loan 3/21 Loan  1M USD LIBOR+  3.75%  0.00%  3.96% 8/27/2025  884,205   880,505   882,366 
Unimin Corporation Metals & Mining Term Loan (12/20) Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 7/31/2026  496,815   471,432   490,853 
United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+  3.25%  0.00%  3.46% 10/22/2025  1,624,974   1,562,482   1,616,166 
United Road Services Inc. Transportation: Cargo Term Loan (10/17) Loan  6M USD LIBOR+  5.75%  1.00%  6.75% 9/1/2024  920,843   915,490   826,457 
Univar Inc. Chemicals, Plastics, & Rubber Term Loan B6 Loan  1M USD LIBOR+  2.00%  0.00%  2.21% 6/2/2028  1,990,000   1,980,782   1,974,458 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/21) Loan  1M USD LIBOR+  3.25%  0.75%  4.00% 3/15/2026  2,471,487   2,464,765   2,451,913 
US Ecology, Inc. Environmental Industries Term Loan B Loan  1M USD LIBOR+  2.50%  0.00%  2.71% 11/2/2026  490,000   489,302   488,040 
Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+  3.00%  0.00%  3.21% 1/20/2028  1,847,121   1,844,606   1,827,264 
Vaco Holdings, LLC Services: Business Term Loan (01/22) Loan  1M USD SOFR+  5.00%  0.75%  5.75% 1/19/2029  250,000   248,777   248,124 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan  3M USD LIBOR+  4.00%  0.00%  4.50% 8/20/2025  1,382,319   1,377,042   1,354,672 
Vertex Aerospace Services Corp Aerospace & Defense Term Loan (10/21) Loan  1M USD LIBOR+  4.00%  0.75%  4.75% 12/6/2028  1,000,000   995,345   992,080 
VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan (01/22) Loan  Daily SOFR+  3.00%  0.50%  3.50% 1/12/2029  3,100,888   3,092,414   3,071,833 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (9/21) Loan  1M USD LIBOR+  2.25%  0.00%  2.36% 9/28/2028  2,992,500   2,982,995   2,971,942 
Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  1.87% 12/31/2025  907,176   906,677   890,075 
Vizient, Inc Healthcare & Pharmaceuticals Term Loan B-6 Loan  1M USD LIBOR+  2.00%  0.00%  2.21% 5/6/2026  486,250   485,567   480,779 
VM Consolidated, Inc. Construction & Building Term Loan B (3/21) Loan  6M USD LIBOR+  3.25%  0.00%  3.60% 3/19/2028  2,339,327   2,336,223   2,322,951 
Vouvray US Finance LLC High Tech Industries Term Loan Loan  1M USD LIBOR+  3.00%  1.00%  4.00% 3/11/2024  476,250   476,250   411,837 


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%  2.33% 1/20/2028  1,250,000   1,249,760   1,234,763 
Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries Term Loan (3/18) Loan  1M USD LIBOR+  3.75%  1.00%  4.75% 3/15/2025  489,822   488,550   469,004 
Watlow Electric Manufacturing Company High Tech Industries Term Loan B Loan  3M USD LIBOR+  3.75%  0.50%  4.25% 3/2/2028  2,481,250   2,470,270   2,452,294 
West Corporation Telecommunications Term Loan B (Olympus Merger) Loan  3M USD LIBOR+  4.00%  1.00%  5.00% 10/10/2024  1,086,078   1,047,433   967,424 
West Corporation Telecommunications Term Loan B Loan  3M USD LIBOR+  3.50%  1.00%  4.50% 10/10/2024  2,599,274   2,562,059   2,301,449 
WEX Inc. Services: Business Term Loan B (3/21) Loan  1M USD LIBOR+  2.25%  0.00%  2.46% 3/31/2028  2,985,000   2,974,005   2,937,419 
WildBrain Ltd. Media: Diversified & Production Term Loan Loan  1M USD LIBOR+  4.25%  0.75%  5.00% 3/27/2028  1,985,000   1,949,907   1,966,401 
WP CITYMD BIDCO LLC Services: Consumer Term Loan B Loan  6M USD LIBOR+  3.25%  0.50%  3.75% 12/22/2028  7,424,013   7,399,065   7,355,340 
Xperi Corporation High Tech Industries Term Loan Loan  1M USD LIBOR+  3.50%  0.00%  3.71% 6/8/2028  2,741,617   2,730,066   2,719,355 
ZEBRA BUYER LLC Banking, Finance, Insurance & Real Estate Term Loan 4/21 Loan  3M USD LIBOR+  3.25%  0.50%  3.75% 11/1/2028  887,097   883,013   882,661 
Zekelman Industries, Inc. Metals & Mining Term Loan (01/20) Loan  1M USD LIBOR+  2.00%  0.00%  2.14% 1/25/2027  968,914   968,914   954,622 
Zodiac Pool Solutions Consumer goods: Durable Term Loan (1/22) Loan  1M USD SOFR+  2.00%  0.50%  2.50% 1/19/2029  500,000   498,783   493,440 
                                   
                            $653,022,265  $638,963,350 


  Number of Shares  Cost  Fair Value 
Cash and cash equivalents         
U.S. Bank Money Market (c)  6,171,793  $6,171,793  $6,171,793 
Total cash and cash equivalents  6,171,793  $6,171,793  $6,171,793 

(a)All or a portion of this investment has an unfunded commitment as of February 28, 2022
(b)As of February 28, 2022, 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, 2022.
(d)Investments include Payment-in-Kind Interest.

 

LIBOR—London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

1W USD LIBOR—The 1 week USD LIBOR rate as of February 28, 2021 was 0.09%.WIBOR - Warsaw Interbank Offered Rate

1M USD LIBOR—The 1 month USD LIBOR rate as of February 28, 20212022 was 0.12%0.23%.

2M USD LIBOR—The 2 month USD LIBOR rate as of February 28, 20212022 was 0.15%0.50%.

3M USD LIBOR—The 3 month USD LIBOR rate as of February 28, 20212022 was 0.19%0.51%.

6M USD LIBOR—The 6 month USD LIBOR rate as of February 28, 20212022 was 0.20%0.80%.

12M USD LIBOR - The 12 month USD LIBOR rate as of February 28, 20212022 was 0.28%1.28%.

3M3 PL WIBOR - The 3 month PL WIBOR rate as of February 28, 2021,2022 was 0.21%3.65%.

Daily SOFR- The daily SOFR rate as of February 28, 2022 was 0.05%.

1M SOFR - The 1 month SOFR rate as of February 28, 2022 was 0.05%.

3M SOFR - The 3 month SOFR rate as of February 28, 2022 was 0.04%.

Prime—The Prime Rate as of February 28, 20212022 was 3.25%.

62


 

Note 5. Investment in SLF JV

On October 26, 2021, the Company and TJHA entered into the LLC Agreement to co-manage SLF JV. SLF JV is invested in SLF 2021, which is a wholly owned subsidiary of SLF JV. SLF 2021 was formed for the purpose of making investments in a diversified portfolio of broadly syndicated first lien and second lien term loans or bonds in the primary and secondary markets.

The Company and TJHA have equal voting interest on all material decisions with respect to SLF JV, including those involving its investment portfolio, and equal control of corporate governance. No management fee is charged to SLF JV as control and management of SLF JV is shared equally.

The Company and TJHA have committed to provide up to a combined $50.0 million of financing to SLF JV through cash contributions, with the Company providing $43.75 million and TJHA providing $6.25 million, resulting in an 87.5% and 12.5% ownership between the two parties. The financing is issued in the form of an unsecured note and equity. The unsecured note will pay a fixed rate of 10.0% per annum and is due and payable in full on June 15, 2023. As of May 31, 2022, the Company and TJHA’s investment in SLF JV consisted of an unsecured note of $13.1 million and $1.9 million, respectively; and membership interest of $13.1 million and $1.9 million, respectively. As of May 31, 2022 and February 28, 2022, the Company’s investment in the unsecured note of SLF JV had a fair value of $13.1 million and $13.1 million, respectively, and the Company’s investment in the membership interests of SLF JV had a fair value of $6.6 million and $12.0, respectively.

As of May 31, 2022, the Company earned approximately $0.3 million of interest income related to SLF JV, which is included in interest income. As of May 31, 2022 and February 28, 2022, $0.1 million and $0.09 million, respectively, of interest income related to SLF JV was included in interest receivable.

SLF JV’s investment in SLF 2021 is in the form of an unsecured loan. The unsecured note will pay a floating rate of SOFR plus 7.00% per annum and is due and payable in full on June 9, 2023. As of May 31, 2022, SLF JV’s investment in SLF 2021 had an aggregate fair value of approximately $19.8 million.

The Company has determined that SLF JV is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. SLF JV is not a wholly-owned investment company subsidiary as the Company and TJHA each have an equal 50% voting interest in SLF JV and thus neither party has a controlling financial interest. Furthermore, ASC 810, Consolidation concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate SLF JV.

Note 6. Income Taxes

 

SIA-Avionte, Inc., SIA-AX.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., each 100% owned by the Company, are each filing standalone C Corporation tax returns for federal and state 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. In February 2022, SIA-GH, Inc., SIA-TT Inc. and SIA-VR, Inc. received an approved plan of liquidation following the sale of equity held by each of the portfolio companies.

 

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 AugustMay 31, 20212022 and February 28, 20212022 were as follows:

 

 August 31,
2021		  February 28,
2021		  May 31, 2022  February 28, 2022 
Total deferred tax assets $2,170,795  $2,108,556  $2,023,885  $1,991,241 
Total deferred tax liabilities  (3,545,975)  (1,987,120)  (1,655,447)  (1,293,496)
Valuation allowance on net deferred tax assets  (2,137,301)  (2,044,100)  (1,946,761)  (1,946,760)
Net deferred tax liability $(3,512,481) $(1,922,664) $(1,578,323) $(1,249,015)

 

As of AugustMay 31, 2021,2022, the valuation allowance on deferred tax assets was $2.1$1.9 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 AugustMay 31, 20212022 includes $1.3$0.4 million deferred tax expense (benefit) on net change in unrealized appreciation (depreciation) on investments, $0.4$0.1 million income tax provisionbenefit from realized gain (loss) on investments and $0.03($0.1) million net change in total operating expense, in the consolidated statement of operations, respectively. Net deferred tax (benefit) expense for the three months ended AugustMay 31, 20202021 includes $0.1$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 six months ended August 31, 2021 includes $1.6 million deferred tax expense on net change in unrealized appreciation on investments, $0.4 million income tax provision from realized gain on investments and $0.06 million net change in total operating expense, in the consolidated statement of operations, respectively. Net deferred tax (benefit) expense for the six months ended August 31, 2020 includes $(0.2) million net change in unrealized appreciation (depreciation) on investments and $(0.00) 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)(provisions) benefit on investments for the three and six months ended AugustMay 31, 20212022 and AugustMay 31, 2020:2021:

 

 For the three months ended For the six months ended  For the three months ended 
 August 31,
2021		 August 31,
2020		 August 31,
2021		 August 31,
2020		  May 31, 2022  May 31, 2021 
Current              
Federal $425,828  $-  $425,828  $-  $213,842  $- 
State  50,694   -   50,694   -   (78,503)  - 
Net current expense  476,522   -   476,522   -   135,339   - 
Deferred                        
Federal  1,111,006   74,636   1,238,856   (170,838)  (296,071)  (127,850)
State  220,748   49,386   350,961   18,175   (33,236)  (130,213)
Net deferred expense  1,331,754   124,022   1,589,817   (152,663)  (329,307)  (258,063)
Net tax provision $1,808,276  $124,022  $2,066,339  $(152,663) $(193,968) $(258,063)

 


Note 6.7. 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, 2021,5, 2022, 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 quarterly report on Form 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 AugustMay 31, 2021 and August 31, 2020,2022, the Company incurred $3.0 million and $2.2 million in base managementdid not incur any incentive fees respectively.related to pre-incentive fee net investment income. For the three months ended AugustMay 31, 2021, and August 31, 2020, the Company incurred $1.7 million and $1.4$1.6 million in incentive fees related to pre-incentive fee net investment income, respectively.income. For the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, the Company accrued an expensea (benefit) of $0.3$(1.9) million and an expense of $0.1 million in incentive fees related to capital gains.

For the six months ended August 31, 2021 and August 31, 2020, the Company incurred $5.8 million and $4.4 million in base management fees, respectively. For the six months ended August 31, 2021 and August 31, 2020, the Company incurred $3.2 million and $2.8 million in incentive fees related to pre-incentive fee net investment income, respectively. For the six months ended August 31, 2021 and August 31, 2020, the Company accrued an expense of $4.0 million and an (benefit) of $(3.1)$3.7 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 AugustMay 31, 2021,2022, the base management fees accrual was $3.0$3.8 million and the incentive fees accrual was $5.7$4.9 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities. As of February 28, 2021,2022, the base management fees accrual was $2.4$3.2 million and the incentive fees accrual was $13.8$9.8 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. On July 5, 2022, 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 $3.0 million to $3.275 million effective August 1, 2022.


 

For the three months ended AugustMay 31, 2022 and May 31, 2021, and August 31, 2020, we recognized $0.7$0.8 million and $0.6 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. For the six months ended August 31, 2021 and August 31, 2020, we recognized $1.4 million and $1.2$0.7 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 AugustMay 31, 2021,2022, $0.1 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, 2021,2022, $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-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, bears 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. AThe non-call period endingwas extended to February 2022 was also added.2022. 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 ofAt August 31, 2021, the 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 $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.

 

For the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, we recognized management fee income of $0.8 million and $0.6$0.8 million, respectively, related to the Saratoga CLO.

 

For the sixthree months ended AugustMay 31, 20212022 and AugustMay 31, 2020, we recognized management fee income of $1.6 million and $1.3 million, respectively, related to the Saratoga CLO.

For the six months ended August 31, 2021, and August 31, 2020, the Company neither bought nor sold any investments from the Saratoga CLO.

 

SLF JV

On October 26, 2021, the Company and TJHA entered into an LLC Agreement to co-manage the SLF JV. SLF JV is a joint venture that is expected to invest in the debt or equity interests of collateralized loan obligations, loan, notes and other debt instruments.

As of May 31, 2022, the Company’s investment in the SLF JV had a fair value of $19.8 million, consisting of an unsecured loan of $13.1 million and membership interest of $6.6 million. In addition, the Company has a receivable of $0.1 million outstanding from the SLF JV, included in Due from Affiliate in the consolidated statements of assets and liabilities.


Note 7.8. 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 board of directors, including a majority of our directors who are not “interested persons” (as defined in Section 2(a)(19) of the 1940 Act”) of the Company (“independent directors and/or stockholders, 150.0%directors”), 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 236.1%179.3% as of AugustMay 31, 20212022 and 347.1%209.3% 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, 2019.2022.

 

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 Collateralcollateral 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. 

On October 4, 2021, the Company entered into a $50.0 million senior secured revolving credit facility with the Lender, supported by loans held by SIF II and pledged to the Encina 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 AugustMay 31, 20212022 and February 28, 2021,2022, there were no borrowings$25.0 million and $12.5 million outstanding under the Encina Credit Facility.

During the applicable periods, the Company was in compliance with all of the limitations and requirements of the Encina Credit Facility. 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.Encina Credit Facility.

 

For the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, we recorded $0.2 million and $0.1$0.2 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 AugustMay 31, 2022 and May 31, 2021, and August 31, 2020, we recorded $0.05$0.1  million and $0.02$0.04 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 AugustMay 31, 2021,2022, the weighted average interest rate on the outstanding borrowings under the Encina Credit Facility was 2.12%4.86%, and the average dollar amount of outstanding borrowings under the Encina Credit Facility was $23.8 million.

For the six months ended August 31, 2021 and August 31, 2020, we recorded $0.4 million and $0.2 million of interest expense related to the Credit Facility, respectively, which includes commitment and administrative agent fees. For the six months ended August 31, 2021 and August 31, 2020, we recorded $0.08 million and $0.05 million of amortization of deferred financing costs related to the 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 six months ended August 31, 2021, the weighted average interest rate on the outstanding borrowings under the Credit Facility was 4.02%, and the average dollar amount of outstanding borrowings under the Credit Facility was $9.5$20.0  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 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. 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. Funds may be borrowed at the greater of the prevailing one-month LIBOR rate and 1.00%, 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%. In addition, theborrowing base. 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 $33.2$58.3 million subject to the Encina Credit Facility cap of $45.0$50.0 million at AugustMay 31, 2021.2022. 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”(the “SEC”). Accordingly, the AugustMay 31, 20212022 borrowing base relies upon the valuations set forth in the QuarterlyAnnual Report on Form 10-Q10-K for the period ended May 31, 2021.February 28, 2022. 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 newSBIC II LP’s SBIC 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 AugustMay 31, 2021,2022, we have funded SBIC LP and SBIC II LP with an aggregate total of equity capital of $75.0 million and $87.5 million, respectively, and have $172.0$217.0 million in SBA-guaranteed debentures outstanding, of which $108.0$86.0 million is held in SBIC LP and $64.0$131.0 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” concerns“smaller enterprises” 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 ofindependent 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 AugustMay 31, 2021,2022, there was $172.0$217.0 million of SBA debentures outstanding and as of February 28, 2021,2022, there was $158.0$185.0 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 $2.9$4.9 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 AugustMay 31, 2022 and May 31, 2021, and August 31, 2020, we recorded $1.2$1.4 million and $1.3$1.2 million of interest expense related to the SBA debentures, respectively. For the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, 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 AugustMay 31, 20212022 and AugustMay 31, 20202021 on the outstanding borrowings of the SBA debentures was 2.65%2.58% and 3.02%2.93%, respectively. During the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, the average dollar amount of SBA debentures outstanding was $181.1$214.9 million and $170.0$158.4 million, respectively.

For the six months ended August 31, 2021 and August 31, 2020, we recorded $2.4 million and $2.5 million of interest expense related to the SBA debentures, respectively. For the six months ended August 31, 2021 and August 31, 2020, we recorded $0.4 million and $0.3 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 six months ended August 31, 2021 and August 31, 2020 on the outstanding borrowings of the SBA debentures was 2.78% and 3.09%, respectively. During the six months ended August 31, 2021 and August 31, 2020, the average dollar amount of SBA debentures outstanding was $169.8 million and $163.7 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.New York Stock Exchange (the “NYSE”).

 

On May 29, 2015, the Company entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. Inc. 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 bonds2022 Notes 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 the 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.full redemption on February 7, 2020.

At February 29, 2020, the debt was extinguished. As such, it was not fair valued with market quotes and is not fair value leveled. The repayment of the 2023 Notes resulted in a realized loss on the extinguishment of debt of $1.6 million.

 

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 in 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. 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 beingwere 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 in 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 beingwere amortized over the term of the 6.25% 2025 Notes.

 

On July 20, 2021, the Company caused notices to be issued to the holders of the 6.25% 2025 Notes regarding the Company’s exercise of its option to redeem, in whole, the issued and outstanding 6.25% 2025 Notes, pursuant to Section 1104 of the Base Indenture and Section 1.01(h) of the Third Supplemental Indenture dated as of August 28, 2018, between the Company and the Trustee. On August 28,31, 2021, the Company redeemed $60.0 million in aggregate principal amount of the issued and outstanding 6.25% 2025 Notes at par, plus the accrued and unpaid interest thereon, through, but excluding, the redemption date of August 30, 2021.Notes.  The 6.25% 2025 Notes were 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 the redemption.full redemption on August 31, 2021.

 

As ofAt August 31, 2021, the debt was extinguished. As such, it was not fair valued with market quotes and is not fair value 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 AugustMay 31, 2022 and May 31, 2021, and August 31, 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 AugustMay 31, 20212022 and AugustMay 31, 2020,2021, the average dollar amount of 6.25% 2025 Notes outstanding was $57.4$0.00 million and $60.0 million, respectively.


 

For the six months ended August 31, 2021 and August 31, 2020, we recorded $1.9 million and $1.9 million, respectively, of interest expense and $0.2 million and $0.2 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 six months ended August 31, 2021 and August 31, 2020, the average dollar amount of 6.25% 2025 Notes outstanding was $58.7 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. 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.

 

As of AugustMay 31, 2021,2022, 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 AugustMay 31, 2021,2022, the carrying amount and fair value of the 7.25% 2025 Notes was $43.1 million and $45.0$43.5 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, 2021,2022, the carrying amount and fair value of the 7.25% 2025 Notes was $43.1 million and $45.7$43.9 million, respectively.

 

For the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, we recorded $0.8 million and $0.6$0.8 million, respectively, of interest expense and $0.08 million and $0.06$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 AugustMay 31, 20212022 and AugustMay 31, 2020, the average dollar amount of the 7.25% 2025 Notes outstanding was $43.1 million and $43.1 million respectively.

For the six months ended August 31, 2021, and August 31, 2020, we recorded $1.6 million and $0.6 million, respectively, of interest expense and $0.2 million and $0.06 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 six months ended August 31, 2021 and August 31, 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 in aggregate principal amount of our 7.75% fixed-rate Notesnotes 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. 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. 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 AugustMay 31, 2021,2022, the total 7.75% Notes 2025 outstanding was $5.0 million. The 7.75% Notes 2025 are not listed and have a par value of $25.00 per share. As of February 28, 2021,2022, there was $5.0 million outstanding.outstanding of the 7.75% Notes 2025. 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 AugustMay 31, 20212022 and AugustMay 31, 2020,2021, we recorded $0.1 million and $0.06$0.1 million, respectively, of interest expense and $0.01 million and $0.06$0.02 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 AugustMay 31, 20212022 and AugustMay 31, 2020 the average dollar amount of 7.75% Notes 2025 outstanding was $5.0 million and $5.0 million respectively.

For the six months ended August 31, 2021, and August 31, 2020, we recorded $0.2 million and $0.06 million, respectively, of interest expense and $0.03 million and $0.06 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 six months ended August 31, 2021 and August 31, 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 in 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. 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.6.25% Notes 2027. The 6.25% Notes 2027 are not listed and have a par value of $25.00 per share.

 


On January 28, 2021, the Company issued $10.0 million in aggregate principal amount of our 6.25% fixed rate Notesnotes 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. 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.6.25% Notes 2027.

 

As of AugustMay 31, 2021,2022, the total 6.25% Notes 2027 outstanding was $15.0 million. The 6.25% Notes 2027 are not listed and have a par value of $25.00 per share. As of February 28, 2021,2022, there was $15.0 million outstanding.outstanding of the 6.25% Notes 2027. 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 AugustMay 31, 20212022 and AugustMay 31, 2020,2021, we recorded $0.2 million and $0.0$0.2 million, respectively, of interest expense and $0.02 million and $0.0$0.02 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 AugustMay 31, 20212022 and AugustMay 31, 20202021 the average dollar amount of 6.25% Notes 2027 outstanding was $15.0 million and $0.0$15.0 million respectively.

For the six months ended August 31, 2021 and August 31, 2020, we recorded $0.5 million and $0.0 million, respectively, of interest expense and $0.04 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 six months ended August 31, 2021 and August 31, 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 $50.0 million in 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 in 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 AugustMay 31, 2021,2022, the total 4.375% Notes 2026 outstanding was $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 February 28, 2021,2022, there was $0.0$175.0 million outstanding.outstanding of the 4.375% Notes 2026. 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 AugustMay 31, 2022 and May 31, 2021, and August 31, 2020, we recorded $1.2$1.9 million and $0.0$0.5 million, respectively, of interest expense, $0.1$0.2 million and $0.0$0.1 million, respectively, of amortization of deferred financing costs and $0.02$0.05 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 three months ended AugustMay 31, 20212022 and AugustMay 31, 20202021, the average dollar amount of 4.375% Notes 2026 outstanding was $115.2$175.0 million and $0.0$50.0 million, respectively.

 

On January 19, 2022, the Company issued $75.0 million in aggregate principal amount of our 4.35% fixed-rate Notes due in 2027 (the “4.35% Notes 2027”) for net proceeds of $73.0 million, based on the public offering price of 99.317% of the aggregate principal amount of the 4.35% Notes 2027, after deducting the underwriting commissions of approximately $1.5 million. Offering costs incurred were approximately $0.2 million. Interest on the 4.35% Notes 2027 is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.35% per year, beginning August 28, 2022. The 4.35% Notes 2027 mature on February 28, 2027 and may be redeemed in whole or in part at the Company’s option at any time prior to November 28, 2026, at par plus a “make-whole” premium, 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 $1.7 million related to the 4.35% Notes 2027 have been capitalized and are being amortized over the term of the Notes.

As of May 31, 2022, the total 4.35% Notes 2027 outstanding was $75.0 million. The 4.35% Notes 2027 are not listed and are issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. As of February 28, 2022, there was $75.0 million outstanding. The carrying amount of the amount outstanding of 4.35% 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 sixthree months ended AugustMay 31, 2022 and May 31, 2021, and August 31, 2020, we recorded $1.7$0.8 million and $0.0 million, respectively, of interest expense $0.2and $0.1 million and $0.0 million, respectively, of amortization of deferred financing costs and $0.02 million and $0.0 million, respectively, of amortization of premium on issuance of 4.375%related to the 4.35% Notes due 2026 (inclusive of the issuance of the Additional 4.375% 2026 Notes).2027. 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 sixthree months ended AugustMay 31, 20212022 and AugustMay 31, 20202021, the average dollar amount of 4.375%4.35% Notes 20262027 outstanding was $84.3$75.0 million and $0.0 million, respectively.

On April 27, 2022, the Company issued $87.5 million in aggregate principal amount of our 6.00% fixed-rate notes due 2027 (the “6.00% 2027 Notes”) for net proceeds of $84.8 million after deducting underwriting commissions of approximately $2.7 million. Offering costs incurred were approximately $0.1 million. On May 10, 2022, the underwriters partially exercised their option to purchase an additional $10.0 million in aggregate principal amount of the 6.00% 2027 Notes. Net proceeds to the Company were $9.7 million after deducting underwriting commissions of approximately $0.3 million. Interest on the 6.00% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.00% per year, beginning August 31, 2022.  The 6.00% 2027 Notes mature on April 30, 2027 and commencing April 27, 2024, may be redeemed in whole or in part at any time or from time to time at our option. We expect to use the net proceeds from this offering to make investments in middle-market companies (including investments made through our SBIC Subsidiaries) in accordance with our investment objective and strategies and for general corporate purposes. We may use the net proceeds from this offering to redeem all of the outstanding 7.25% 2025 Notes, which are redeemable by us commencing June 24, 2022. Financing costs of $3.3 million related to the 6.00% 2027 Notes have been capitalized and are being amortized over the term of the 6.00% 2027 Notes. The 6.00% 2027 Notes are listed on the NYSE under the trading symbol “SAT” with a par value of $25.00 per share.

As of May 31, 2022, the carrying amount and fair value of the 6.00% 2027 Notes was $97.5 million and $94.6 million, respectively. The fair value of the 6.00% 2027 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, 2022, the carrying amount and fair value of the 6.00% 2027 Notes was $0.0 million and $0.0 million, respectively.

For the three months ended May 31, 2022 and May 31, 2021, we recorded $0.5 million and $0.0 million, respectively, of interest expense and $0.06 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 6.00% 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, 2022 and May 31, 2021, the average dollar amount of 6.00% Notes 2027 outstanding was $43.8 million and $0.0 million, respectively.

 


Senior Securities

Information about our senior securities is shown in the following table as of August 31, 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 August 31, 2021) $-  $2,361   -   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 August 31, 2021) $-  $-   -   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 August 31, 2021) $43,125  $2,361   -  $26.30(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 August 31, 2021) $5,000  $2,361   -  $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 August 31, 2021) $175,000  $2,361   -  $25.00(12)
6.25 Notes due 2027                
Fiscal year 2022 (as of August 31, 2021) $15,000  $2,361   -  $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 2023 (as of May 31, 2022) $25,000  $1,793   -   N/A 
Fiscal year 2022 (as of February 28, 2022) $12,500  $2,093   -   N/A 
Credit Facility with Madison Capital Funding(14)                
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 February 28, 2022)  -   -   -    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 2023 (as of May 31, 2022) $43,125  $1,793   -  $25.20(11)
Fiscal year 2022 (as of February 28, 2022) $43,125  $2,093   -  $25.46(11)
Fiscal year 2021 (as of February 28, 2021) $43,125  $3,471   -  $25.77(11)
7.75% Notes due 2025                
Fiscal year 2023 (as of May 31, 2022) $5,000  $1,793   -  $25.00(12)
Fiscal year 2022 (as of February 28, 2022) $5,000  $2,093   -  $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 2023 (as of May 31, 2022) $175,000  $1,793   -  $25.00(12)
Fiscal year 2022 (as of February 28, 2022) $175,000  $2,093   -  $25.00(12)
4.35% Notes due 2027                
Fiscal year 2023 (as of May 31, 2022) $75,000  $1,793   -  $25.00(12)
Fiscal year 2022 (as of February 28, 2022) $75,000  $2,093   -  $25.00(12)
6.25% Notes due 2027                
Fiscal year 2023 (as of May 31, 2022) $15,000  $1,793   -  $25.00(12)
Fiscal year 2022 (as of February 28, 2022) $15,000  $2,093   -  $25.00(12)
Fiscal year 2021 (as of February 28, 2021) $15,000  $3,471   -  $25.00(12)
6.00% Notes due 2027                
Fiscal year 2023 (as of May 31, 2022) $97,500  $1,793      $24.73(15)

 

 

(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 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 28,31, 2021, the Company redeemed $60.0 million in aggregate principal amount of the $60.0 million in aggregate principal amount of 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.
(15)Based on the average daily trading price of the 2027 Notes on the NYSE.    

74

 

Note 8.9. Commitments and Contingencies

 

Contractual Obligations

 

The following table shows our payment obligations for repayment of debt and other contractual obligations at AugustMay 31, 2021:2022:

 

     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 $-  $           -  $-  $-  $- 
SBA debentures  172,000   -   8,000   53,660   110,340 
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 $410,125  $-  $8,000  $276,785  $125,340 

     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 $25,000  $                  -  $25,000  $-  $- 
SBA debentures  217,000      -   15,000   33,660   168,340 
7.25% 2025 Notes  43,125   -   -   43,125   - 
7.75% 2025 Notes  5,000   -   -   5,000   - 
4.375% 2026 Notes  175,000   -   -   175,000   - 
4.35% 2027 Notes  75,000   -   -   75,000   - 
6.25% 2027 Notes  15,000   -   -   -   15,000 
6.00% 2027 Notes  97,500   -   -   97,500   - 
Total Long-Term Debt Obligations $652,625  $-  $40,000  $429,285  $183,340 

 

Off-Balance Sheet Arrangements

 

As of AugustMay 31, 20212022 and February 28, 2021,2022, the Company’s off-balance sheet arrangements consisted of $58.7$96.0 million and $58.8$83.4 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 AugustMay 31, 20212022 and February 28, 20212022 is shown in the table below (dollars in thousands):

 

  August 31,
2021		  February 28,
2021		 
At Company’s discretion      
Artemis Wax Corp. $15,000  $- 
Axero Holdings, LLC  3,000   - 
Book4Time, Inc.  2,000   2,000 
CLEO Communications Holding, LLC  -   630 
Granite Comfort, LP  5,000   - 
GreyHeller LLC  11,000   15,000 
Netreo Holdings, LLC  1,000   10,000 
Passageways, Inc.  -   5,000 
Pepper Palace, Inc.  3,000   - 
Procurement Partners, LLC  3,000   - 
Top Gun Pressure Washing, LLC  175   3,175 
Village Realty Holdings LLC  -   10,000 
Total  43,175   45,805 
         
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required        
Axero Holdings, LLC  2,000   - 
GoReact  -   2,000 
HemaTerra Holding Company, LLC  2,000   2,000 
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   - 
   15,500   13,000 
Total $58,675  $58,805 
  May 31,
2022		  February 28,
2022		 
At Company’s discretion        
Artemis Wax $15,000  $3,700 
Ascend Software LLC  5,000   5,000 
Axero Holdings  3,000   3,000 
Davisware  2,000   2,000 
Granite Comfort  5,000   - 
JDXpert  5,000   - 
Lee’s Famous Recipe Chicken  4,000   10,000 
Netreo Holdings, LLC  1,500   4,000 
Pepper Palace  3,000   3,000 
Procrement Partners  2,800   2,800 
Saratoga Senior Loan Fund I JV LLC  17,500   17,500 
Sceptre Hospitality Resources  250   1,000 
Book4Time, Inc.  -   2,000 
Total  64,050   54,000 
         
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required
Ascend Software LLC  5,200   6,500 
Axero Holdings  900   2,000 
Axero Holdings - Revolver  500   500 
Davisware, LLC  1,000   1,000 
Exigo - DDTL  4,167   - 
Exigo - Revolver  833   - 
GDS Holdings US, Inc.  1,786   2,786 
Granite Comfort  5,000   - 
GoReact  500   2,500 
JDXpert  1,000   - 
Madison Logic - Revolver  1,084   1,084 
New England Dental Partners  4,500   4,500 
Pepper Palace - DDTL  2,000   2,000 
Pepper Palace - Revolver  2,500   2,500 
Zollege  1,000   1,000 
Lee’s Famous Recipe Chicken  -   3,000 
   31,970   29,370 
Total $96,020  $83,370 

 


The Company believes its assets will provide adequate coverage to satisfy these unfunded commitments. As of May 31, 2022, the Company had cash and cash equivalents of $94.9 million and $6.6 in available borrowings under the Encina Credit Facility.

Note 9.10. 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 Section 2(a)(19) of the 1940 Act). For the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, we incurred $0.1 million and $0.1 million for directors’ fees and expenses, respectively. For the six months ended August 31, 2021 and August 31, 2020, we incurred $0.2 million and $0.1$0.09 million for directors’ fees and expenses, respectively. As of AugustMay 31, 2021,2022, and February 28, 2021, $0.02022, $0.1 million and $0.07 million in directors’ fees and expenses were accrued and unpaid, respectively. As of AugustMay 31, 2021,2022, we had not issued any common stock to our directors as compensation for their services.

 


Note 10.11. 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. 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. As of AugustMay 31, 2021,2022, the Company purchased 458,435650,612 shares of common stock, at the average price of $18.64$20.86 for approximately $8.6$13.6 million pursuant to the Share Repurchase Plan. During the three months ended AugustMay 31, 2021,2022 the Company purchased 9,623142,177 shares of common stock, at the average price of $25.85$26.27 for approximately $0.2 million pursuant to the Share Repurchase Plan. During the six months ended August 31, 2021, the Company purchased 49,623 shares of common stock, at the average price of $25.23 for approximately $1.3$3.8 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. This agreement was terminated as of 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 (collectively the “Agents”), through which we may offer for sale, from time to time, up to $150.0 million of our common stock through an ATM offering.the Agents, or to them, as principal for their account. As of AugustMay 31, 2021,2022, the Company sold 5,4414,840,361 shares for gross proceeds of $0.2$124.0 million at an average price of $28.86$25.61 for aggregate net proceeds of $0.2$122.4 million (net of transaction costs). During the three and six months ended AugustMay 31, 2021,2022, there were no shares sold pursuant to the Company sold 5,441 shares for gross proceeds of $0.2 million at an average price of $28.86 for aggregate net proceeds of $0.2 million (net of transaction cost).equity distribution agreement with the Agents.

 

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. 

 


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:

 

      Capital Total        Capital Total    
 Common Stock  in Excess  Distributable     Common Stock  in Excess  Distributable    
 Shares  Amount  of Par Value  Earnings (Loss)  Net Assets  Shares  Amount  of Par Value  Earnings (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 
Balance at February 28, 2021  11,161,416  $11,161  $304,874,957  $(700,348) $304,185,770 
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   5,334,713   5,334,713   -   -   -   2,555,935   2,555,935 
Net realized gain (loss) from investments  -   -   -   11,929   11,929   -   -   -   1,910,141   1,910,141 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   16,580,401   16,580,401   -   -   -   16,812,577   16,812,577 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (116,521)  (116,521)  -   -   -   (230,144)  (230,144)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (4,487,015)  (4,487,015)  -   -   -   (4,799,405)  (4,799,405)
Capital Share Transactions:                                        
Proceeds from issuance of common stock  -   -   -   -   -   -   -   -   -   - 
Stock dividend distribution  47,098   46   774,944   -   774,990   38,580   39   914,063   -   914,102 
Repurchases of common stock  (90,321)  (90)  (1,550,327)  -   (1,550,417)  (40,000)  (40)  (1,003,380)  -   (1,003,420)
Repurchase fees  -   -   (1,740)  -   (1,740)  -   -   (800)  -   (800)
Offering costs  -   -   -   -   -   -   -   -   -   - 
Balance at August 31, 2020  11,174,322  $11,174  $288,699,868  $9,466,316  $298,177,358 
Balance at May 31, 2021  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 

 


        Capital  Total    
  Common Stock  in Excess  Distributable    
  Shares  Amount  of Par Value  Earnings (Loss)  Net Assets 
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 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   4,288,996   4,288,996 
Net realized gain (loss) from investments  -   -   -   (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)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   14,337,460   14,337,460 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (515,796)  (515,796)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (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 
Repurchases of common stock  (50,000)  (50)  (1,143,748)  -   (1,143,798)
Repurchase fees  -   -   (1,003)  -   (1,003)
Offering costs  -   -   -   -   - 
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles  -   -   16,529,030   (16,529,030)  - 
Balance at February 28, 2021  11,161,416  $11,161  $304,874,957  $(700,348) $304,185,770 

        Capital  Total    
  Common Stock  in Excess  Distributable    
  Shares  Amount  of Par Value  Earnings (Loss)  Net Assets 
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 
Increase (Decrease) from Operations:                    
Net investment income    -   -   -   5,796,910   5,796,910 
Net realized gain (loss) from investments  -   -   -   69,664   69,664 
Income tax (provision) benefit from realized gain on investments    -   -   -   9,612   9,612 
Realized losses on extinguishment of debt              (118,147)  (118,147)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   2,873,561   2,873,561 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (226,702)  (226,702)
Decrease from Shareholder Distributions:                      
Distributions of investment income – net  -   -   -   (6,434,106)  (6,434,106)
Capital Share Transactions:                      
Proceeds from issuance of common stock  392,826   392   11,513,992   -   11,514,383 
Stock dividend distribution    41,520   42   1,114,886   -   1,114,929 
Repurchases of common stock  (50,000)  (50)  (1,292,843)  -   (1,292,893)
Repurchase fees            (1,000)  -   (1,000)
Offering costs          (127,433)  -   (127,433)
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles    -   -   (4,704,545)  4,704,545   - 
Balance at February 28, 2022  12,131,350  $12,131  $328,062,246  $27,706,146  $355,780,523 
Increase (Decrease) from Operations:                    
Net investment income    -   -   -   7,976,222   7,976,222 
Net realized gain (loss) from investments  -   -   -   162,509   162,509 
Income tax (provision) benefit from realized gain on investments    -   -   -   69,250   69,250 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (9,333,449)  (9,333,449)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments    -   -   -   (361,951)  (361,951)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net    -   -   -   (6,428,817)  (6,428,817)
Capital Share Transactions:                    
Proceeds from issuance of common stock    -   -   -   -   - 
Stock dividend distribution  42,825   43   1,108,637   -   1,108,680 
Repurchases of common stock    (142,177)  (142)  (3,734,174)  -   (3,734,316)
Repurchase fees  -   -   (2,840)  -   (2,840)
Offering costs    -   -   -   -   - 
Balance at May 31, 2022  12,031,998   12,032   325,433,869   19,789,910   345,235,811 

 


        Capital  Total    
  Common Stock  in Excess  Distributable    
  Shares  Amount  of Par Value  Earnings (Loss)  Net Assets 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   2,555,935   2,555,935 
Net realized gain (loss) from investments  -   -   -   1,910,141   1,910,141 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   16,812,577   16,812,577 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (230,144)  (230,144)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (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 
Repurchases of common stock  (40,000)  (40)  (1,003,380)  -   (1,003,420)
Repurchase fees  -   -   (800)  -   (800)
Offering costs  -   -   -   -   - 
Balance at May 31, 2021  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 

 

79

Note 11.12. Earnings Per Share

 

In accordance with the provisions of FASB ASC Topic 260, “EarningsEarnings per Share”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 (decrease) in net assets resulting from operations per share for the three and six months ended AugustMay 31, 20212022 and AugustMay 31, 20202021 (dollars in thousands except share and per share amounts):

 

 For the three months ended  For the six months ended  For the three months ended 
Basic and Diluted August 31,
2021		  August 31,
2020		  August 31,
2021		  August 31,
2020		  May 31,
2022		  May 31,
2021		 
Net increase (decrease) in net assets resulting from operations $7,942  $21,811  $28,990  $(845) $(1,487) $21,049 
Weighted average common shares outstanding  11,175,436   11,207,142   11,172,787   11,212,315   12,112,372   11,170,045 
Weighted average earnings (loss) per common share $0.71  $1.95  $2.59  $(0.08) $(0.12) $1.88 

 

Note 12.13. Dividend

 

On AugustMay 26, 2021,2022, the Company declared a dividend of $0.52$0.53 per share payable on September 28, 2021,June 29, 2022, to common stockholders of record on SeptemberJune 14, 2021.2022. 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 $4.9$5.1 million in cash and 38,01648,590 newly issued shares of common stock, or 0.3%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 $26.76$22.40 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on SeptemberJune 15, 16, 17, 20, 21, 22, 23, 24, 27, 28 and 28, 2021.29, 2022.

 

The following table summarizes dividends declared for the sixthree months ended AugustMay 31, 2022 (dollars in thousands except per share amounts):

Date Declared Record Date Payment Date Amount
Per Share		  Total Amount* 
May 26, 2022 June 14, 2022 June 29, 2022 $0.53  $6,370 
Total dividends declared     $0.53  $6,370 

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

The following table summarizes dividends declared for the three months ended May 31, 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* 
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     $0.87  $9,709      $0.43  $4,799 

 

 

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

 

The following table summarizes dividends declared for the six months ended August 31, 2020 (dollars in thousands except per share amounts):

Date Declared Record Date Payment Date Amount
Per Share		  Total Amount* 
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 13.14. Financial Highlights

 

The following is a schedule of financial highlights as of and for the sixthree months ended AugustMay 31, 20212022 and AugustMay 31, 2020:2021:

 

Per share data August 31,
2021		 August 31,
2020		  May 31,
2022		  May 31,
2021		 
Net asset value at beginning of period $27.25 $27.13  $29.33  $27.25 
Net investment income(1) 0.80 1.28   0.66   0.23 
Net realized and unrealized gain and losses on investments(1) 1.93 (1.36)  (0.78)  1.65 
Realized losses on extinguishment of debt  (0.14)  - 
Net increase in net assets resulting from operations 2.59 (0.08)  (0.12)  1.88 
Distributions declared from net investment income  (0.87)  (0.40)  (0.53)  (0.43)
Total distributions to stockholders (0.87) (0.40)  (0.53)  (0.43)
Issuance of common stock above net asset value (2) - -   -   - 
Repurchases of common stock(3) 0.01 0.06   0.04   0.01 
Dilution(4)  (0.01)  (0.03)  (0.02)  (0.01)
Net asset value at end of period $28.97 $26.68  $28.69  $28.70 
Net assets at end of period $324,111,845 $298,177,358  $345,235,811  $320,344,756 
Shares outstanding at end of period 11,188,912 11,174,322   12,031,998   11,159,995 
Per share market value at end of period $28.70 $17.14  $26.57  $25.55 
Total return based on market value(5)(6) 28.72% (23.37)%  (1.30)%  12.71%
Total return based on net asset value(5)(7) 10.02% 0.73%  (0.13)%  7.24%
Ratio/Supplemental data:             
Ratio of net investment income to average net assets(8) 7.88% 9.55%  7.42%  8.25%
Expenses:             
Ratio of operating expenses to average net assets(9) 5.97% 4.87%  6.49%  5.92%
Ratio of incentive management fees to average net assets(5) 2.30% (0.11)%  (0.54)%  1.69%
Ratio of interest and debt financing expenses to average net assets(9)  5.97%  3.97%  7.77%  5.51%
Ratio of total expenses to average net assets(8) 14.24% 8.73%  13.73%  13.12%
Portfolio turnover rate(5)(10) 23.67% 6.63%  1.18%  2.43%
Asset coverage ratio per unit(11) 2,361 3,758   1,793   2,510 
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 
6.25% Notes Payable 2025(13) $25.44 $23.23    N/A  $25.58 
7.25% Notes Payable 2025 $26.45 $25.29  $25.42  $26.61 
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 
6.00% Notes Payable 2027 $24.70   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 10,11, 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 12,13, 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 August 28, 20201,31, 2021, the Company redeemed $60.0 million in aggregate principal amount of the $60.0 million in aggregate principal amount of issued and outstanding 6.25% 2025 Notes and, as a result of the full redemption, the 6.25% 2025 Notes are no longer listed on the NYSE.


Note 14.15. Subsequent Events

 

The Company has evaluated subsequent events through the filing of this Quarterly Report on 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:

 

SubsequentOn June 14, 2022, the Company caused notices to August 31, 2021,be issued to the global outbreakholders of 7.25% 2025 Notes regarding the Company’s exercise of its option to redeem, in whole, the issued and outstanding 7.25% 2025 Notes. The Company will redeem $43.125 million in aggregate principal amount of the coronavirus pandemic has adversely affected some of the Company’s investmentsissued and continues to have adverse consequencesoutstanding 7.25% 2025 Notes on the U.S. and global economies.July 14, 2022 (the “Redemption Date”). 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 six months ended August 31, 2021. The Company cannot predict the extent to which its financial condition and results of operations7.25% 2025 Notes will be adversely affectedredeemed at this time. The potential impact to our results will depend to a large extent on future developments100% of their principal amount ($25 per Note), plus the accrued and new information that may emerge regardingunpaid interest thereon, through, but excluding, 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 September 13, 2021, we entered into a sixth amendment to the Credit Facility to, among other things, extend the commitment termination date of the Credit Facility from September 17, 2021 to October 1, 2021, with no change to the maturity date of September 17, 2025.

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. This 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 to up to $75.0 million. The terms of the 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 credit facility is three years. Advances under the 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 this credit facility, all remaining amounts outstanding on the Company's existing revolving credit facility with Madison Capital Funding, LLC was repaid and the facility terminated.Redemption Date.

 


 

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, 2021.2022.

 

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,the impact of geopolitical conditions, including the ongoing conflict between Ukraine and Russia and its impact on financial market volatility, global economic markets, and various sectors, industries and markets for commodities globally, such as the recent global outbreak of COVID-19;oil and natural gas;

 

●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, including the decommissioning of LIBOR and the rising interest rate environment, on our results, particularly because we use leverage as part of our investment strategy;

●the impact of supply chain constraints and labor difficulties on our portfolio companies and the global economy;

●the elevated level of inflation, and its impact on our portfolio companies and on the industries in which we invest;

 

●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, geopolitical or industry conditions, and changes in the interest rate environment, including with respect to the anticipated discontinuationdecommissioning of LIBOR and interest rate hikes by the U.S. Federal Reserve, 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 measuresrestrictions 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 from increasing inflation, a shifting interest rate environment, geopolitical events (including the current economic downturn as a result ofwar in Ukraine), and the ongoing 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;


 

●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 reportQuarterly Report on Form 10-Q on information available to us on the date of this quarterly reportQuarterly 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 reportQuarterly 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”).

 

8491

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 goods and services, reductions in business activity and financial transactions, supply chain interruptions and overall 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 September 1, 2021 through October 5, 2021. 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 August 31, 2021, the analysis contained herein may not fully account for impacts relating to the COVID-19 pandemic. In that regard, for example, as of August 31, 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 August 31, 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-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-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 NYSENew York Stock Exchange (“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. Inc. 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 had sold 539,725 bonds2022 Notes 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 partial exercise of substantially all of the underwriters’ option to purchase an additional $9.8 million in 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 the 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 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. This agreement was terminated as of 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, through which we may offer for sale, from time to time, up to $150.0 million of our common stock through an ATM offering. As of August 31, 2021, the Company sold 5,441 shares for gross proceeds of $0.2 million at an average price of $28.86 for aggregate net proceeds of $0.2 million (net of transaction costs). During the three and six months ended August 31, 2021, the Company sold 5,441 shares for gross proceeds of $0.2 million at an average price of $28.86 for aggregate net proceeds of $0.2 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.

 

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 in 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. 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 beingwere 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 in 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 were 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 August 31, 2021, the 6.25% 2025 Notes were redeemed. The 6.25% 2025 Notes are no longer listed on the NYSE.

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 newSBIC II LP’s SBIC license will provideprovides 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.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. As of AugustMay 31, 2021,2022, 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 in aggregate principal amount of our 7.75% fixed-rate Notesnotes due in 2025 (the “7.75% 2025 Notes”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. 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 AugustMay 31, 2021,2022, the total 7.25% 2025 Notes outstanding was $5.0 million. The 7.75% Notes 2025 Notes are unlistednot listed and has a par value of $25.00

$25.00 per share.

 

On December 29, 2020, the Company issued $5.0 million in aggregate principal amount of our 6.25% fixed-rate Notesnotes 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.6.25% Notes 2027. The 6.25% 2027 Notes are unlistednot listed and have a par value of $25.00 per share.

 

On January 28, 2021, the Company issued $10.0 million in aggregate principal amount of our 6.25% fixed rate Notesnotes 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.

 


On March 10, 2021, the Company issued $50.0 million in 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. As ofAt August 31, 2021, the outstanding receivable of $2.6 million was repaidpaid in full.


 

On July 15, 2021, the Company issued an additional $125.0 million in 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 20,30, 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 May 31, 2022, the Company caused notices to be issuedsold 4,840,361 shares for gross proceeds of $124.0 million at an average price of $25.61 for aggregate net proceeds of $122.4 million (net of transaction costs). During the three months ended May 31, 2022, there were no shares sold pursuant to the holders ofequity distribution agreement with the 6.25% 2025 Notes regarding the Company’s exercise of its option to redeem, in whole, the issued and outstanding 6.25% 2025 Notes, pursuant to Section 1104 of the Base Indenture and Section 1.01(h) of the Third Supplemental Indenture dated as of August 28, 2018, between the Company and the Trustee. On August 28, 2021, the Company redeemed $60.0 million in aggregate principal amount of issued and outstanding 6.25% 2025 Notes at par, plus the accrued and unpaid interest thereon, through, but excluding, the redemption date of August 30, 2021. The 6.25% 2025 Notes were 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 the redemption.Agents.

 

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.

 

Critical Accounting PoliciesThe 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 (“TJHA”) entered into a Limited Liability Company Agreement (the “LLC Agreement”) to co-manage Saratoga Senior Loan Fund I JV LLC (“SLF JV”). SLF JV is invested in Saratoga Investment Corp Senior Loan Fund 2021-1 Ltd (“SLF 2021”), which is a wholly owned subsidiary of SLF JV. SLF 2021 was formed for the purpose of making investments in a diversified portfolio of broadly syndicated first lien and second lien term loans or bonds in the primary and secondary markets.

The Company and TJHA have equal voting interest on all material decisions with respect to SLF JV, including those involving its investment portfolio, and equal control of corporate governance. No management fee is charged to SLF JV as control and management of SLF JV is shared equally.

The Company and TJHA have committed to provide up to a combined $50.0 million of financing to SLF JV through cash contributions, with the Company providing $43.75 million and TJHA providing $6.25 million, resulting in an 87.5% and 12.5% ownership between the two parties. The financing is issued in the form of an unsecured note and equity. The unsecured note will pay a fixed rate of 10.0% per annum and is due and payable in full on June 15, 2023. As of May 31, 2022, the Company and TJHA’s investment in SLF JV consisted of an unsecured note of $13.1 million and $1.9 million, respectively; and membership interest of $13.1 million and $1.9 million, respectively.

As of May 31, 2022, the Company earned approximately $0.3 million of interest income related to SLF JV, which is included in interest income.

SLF JV’s investment in SLF 2021 is in the form of an unsecured loan. The unsecured note will pay a floating rate of SOFR plus 7.00% per annum and is due and payable in full on June 9, 2023. As of May 31, 2022, SLF JV’s investment in SLF 2021 had an aggregate fair value of approximately $19.8 million.


The Company has determined that SLF JV is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. SLF JV is not a wholly-owned investment company subsidiary as the Company and TJHA each have an equal 50% voting interest in SLF JV and thus neither party has a controlling financial interest. Furthermore, ASC 810 concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate SLF JV.

 

Recent COVID-19 Developments

We have been closely monitoring, and will continue to monitor, the impact of the COVID-19 pandemic (including new variants of COVID-19) and its impact on all aspects of our business, including how it will impact our portfolio companies, employees, due diligence and underwriting processes, and financial markets. Given the continued fluidity of the pandemic, we cannot estimate the long-term impact of COVID-19 on our business, future results of operations, financial position or cash flows at this time. Further, the operational and financial performance of the portfolio companies in which we make investments may be significantly impacted by COVID-19, which may in turn impact the valuation of our investments. We believe our portfolio companies have taken, and continue to take, immediate actions to effectively and efficiently respond to the challenges posed by COVID-19 and related restrictions imposed by state and local governments and other private businesses, including developing liquidity plans supported by internal cash reserves, and shareholder support. The COVID-19 pandemic and preventative measures taken to contain or mitigate its spread have caused, and are continuing to cause, 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 in the United States and globally. Such effects will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter.

Critical Accounting Policies and Use of Estimates

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 and estimates 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 sheetmeasurement 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 raterates 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 athe valuation for our investment in Saratoga CLO.

The SEC has adopted new Rule 2a-5 under the 1940 Act. This rule establishes requirements for determining fair value in good faith for purposes of the 1940 Act. We will comply with the new rule’s valuation requirements on or before the SEC’s compliance date in September 2022.

 

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 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 3M USD LIBOR plus 8.75% and 3M USD LIBOR plus 10.00%, respectively. As part of this refinancing, we also redeemed our existing $4.5 million in aggregate amount of the Class F notes tranche at par.par and the $20.0 million CLO 2013-1 Warehouse Loan was repaid.

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 owned subsidiary Saratoga CLO.

 

On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This fourth Saratoga CLO refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. AThe non-call period endingwas extended to February 2022 was also added.2022. 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 ofAt August 31, 2021, the 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 $8.5 million Class F-1-R-3 Notes and

$9.4 $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 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 directors who are not “interested persons” (as defined in Section 2(a)(19) of the 1940 Act) of the Company (“independent directorsdirectors”) 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 formerthe 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.

 

NewRecent 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

 

 August 31,
2021		  February 28,
2021		  May 31,
2022		  February 28,
2022
 ($ in millions)  ($ in millions) 
Number of investments(1)  90   81   103  94 
Number of portfolio companies(2)  43   40   47  45 
Average investment per portfolio company(2) $14.5  $12.6  $18.1 $17.3 
Average investment size(1) $7.0  $6.5  $8.5 $8.4 
Weighted average maturity(3)  3.2 yrs   3.2 yrs   2.9 yrs  2.9 yrs 
Number of industries(5)  34   31   38  38 
Non-performing or delinquent investments (fair value) $-  $2.1  $10.1 $-   
Fixed rate debt (% of interest earning portfolio)(3) $16.9(3.1)% $23.3(4.8)% $11.8(1.5%) $16.9(2.5%)
Fixed rate debt (weighted average current coupon)(3)  10.1%  9.8%  9.5%  10.0%
Floating rate debt (% of interest earning portfolio)(3) $533.6(96.9)% $462.6(95.2)% $757.1(98.5%) $671.2(97.5%)
Floating rate debt (weighted average current spread over LIBOR)(3)(4)  7.3%  7.4%  7.0%  7.1%

 

 

(1)Excludes our investment in the subordinated notes of Saratoga CLO.
(2)At August 31, 2021, excludesExcludes our investment in the subordinated notes of Saratoga CLO and Class F-2-R-3F-R-3 Note tranche, of Saratoga CLO. At February 28, 2021, excludes our investmentas well as the unsecured notes and equity interests in the subordinated notes of Saratoga CLO, Class F-R-3 Notes tranches of Saratoga CLO.SLF JV.
(3)Excludes our investment in the subordinated notes of Saratoga CLO and equity interests.interests, as well as the unsecured notes and equity interests in the SLF JV.
(4)Calculation uses either 1-month or 3-month LIBOR, depending on the contractual terms, and after factoring in any existing LIBOR floors.
(5)Our investment in the subordinated notes of Saratoga CLO and Class F-R-3 Note tranche, as well as the unsecured notes and equity interests in the SLF JV are included in Structured Finance Securities industry.

 

During the three months ended AugustMay 31, 2021,2022, we invested $133.9$97.2 million in new or existing portfolio companies and had $152.7$10.1 million in aggregate amount of exits and repayments resulting in net exits and repaymentsinvestment of $18.8$87.1 million for the period. During the three months ended AugustMay 31, 2020,2021, we invested $31.7$119.2 million in new or existing portfolio companies and had $23.3$14.9 million in aggregate amount of exits and repayments resulting in net exits and repaymentsinvestment of $8.4$104.3 million for the period.

During the six months ended August 31, 2021, we invested $235.2 million in new or existing portfolio companies and had $149.8 million in aggregate amount of exits and repayments resulting in net investments of $85.4 million for the period. During the six months ended August 31, 2020, we invested $70.7 million in new or existing portfolio companies and had $32.6 million in aggregate amount of exits and repayments resulting in net exits and repayments of $38.1 million for the period.


 

Portfolio Composition

Our portfolio composition at AugustMay 31, 20212022 and February 28, 20212022 at fair value was as follows:

 

 August 31, 2021  February 28, 2021  May 31, 2022  February 28, 2022 
 Percentage
of Total
Portfolio		  Weighted
Average
Current
Yield		  Percentage
of Total
Portfolio		  Weighted
Average
Current
Yield		  Percentage
of Total
Portfolio		  Weighted
Average
Current Yield		  Percentage
of Total
Portfolio		  Weighted
Average Current Yield		 
First lien term loans  74.1%  8.9%  79.5%  9.5%  80.3%  8.6%  77.3%  8.3%
Second lien term loans  6.7   11.0   4.4   12.3   4.3   7.0   5.4   11.1 
Unsecured term loans  0.4   8.3   0.4   -   1.8   9.7   1.9   9.7 
Structured finance securities  6.7   13.2   9.0   11.6   3.7   8.0   4.7   10.5 
Equity interests  12.1   -   6.7   -   9.9   -   10.7   - 
Total  100.0%  8.2%  100.0%  9.1%  100.0%  7.7%  100.0%  7.7%

 


At AugustMay 31, 2021,2022, our investment in the subordinated notes of Saratoga CLO, a collateralized loan obligation fund, had a fair value of $35.1$24.1 million and constituted 5.3%2.7% of our portfolio. This investment constitutes a first loss position in a portfolio that, as of AugustMay 31, 20212022 and February 28, 2021,2022, was composed of $685.7$647.3 million and $603.7$660.2 million, respectively, in aggregate principal amount of primarily senior secured first lien term loans. In addition, as of AugustMay 31, 2021,2022, we also own $9.4 million in aggregate principal of the F-2-R-3 Notes in the Saratoga CLO, thatwhich only rank senior to the subordinated notes.

 

This investment is subject to unique risks. (See “PartPart 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)2022).

 

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 AugustMay 31, 2021, $640.5 million or 99.0% 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. At February 28, 2021, $584.62022, $593.2 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. At February 28, 2022, $630.3 million or 98.7% of the Saratoga CLO portfolio investments in terms of market value had a CMR color rating of green or yellow and four Saratoga CLO portfolio investments were in default with a fair value of $0.8$2.8 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, 2021.2022.

 

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 AugustMay 31, 20212022 and February 28, 20212022 was as follows:

 

Saratoga Investment Corp.

 

 August 31, 2021  February 28, 2021  May 31, 2022  February 28, 2022 
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 $513,137   77.0% $453,297   81.8% $743,116   83.1% $690,672   84.5%
Yellow  37,387   5.6   32,559   5.9   38,888   4.3   10,593   1.3 
Red  -   0.0   -   0.0   -   0.0   -   0.0 
N/A(1)  115,573   17.4   68,457   12.3   112,529   12.6   116,302   14.2 
Total $666,097   100.0% $554,313   100.0% $894,533   100.0% $817,567   100.0%

 

 

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

 

The change in reserve from $1.2$0.0 million as of February 28, 20212022 to $0.0$0.7 million as of AugustMay 31, 20212022 was primarily related to the write-offnon-accrual of the interest accrualsincome related to My Alarm Center, LLC, that we deemed non-recoverable, as well as the release of the reserve for our Taco Mac investment that has gone back on accrual. As of August 31, 2021, there are no non-accrual investments.Knowland Group.

 

The CMR distribution of Saratoga CLO investments at AugustMay 31, 20212022 and February 28, 20212022 was as follows:

 

Saratoga CLO

 

 August 31, 2021  February 28, 2021  May 31, 2022  February 28, 2022 
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 $590,667   91.4% $514,183   86.8% $568,023   94.5% $595,324   93.2%
Yellow  49,838   7.7   70,415   11.9   25,164   4.2   34,983   5.5 
Red  5,757   0.9   6,921   1.2   7,739   1.3   8,622   1.3 
N/A(1)  -   0.0   501   0.1   -   0.0   34   0.0 
Total $646,262   100.0% $592,020   100.0% $600,926   100.0% $638,963   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 AugustMay 31, 20212022 and February 28, 2021:2022:

 

Saratoga Investment Corp.

 

 

August 31, 2021

  February 28, 2021  May 31, 2022  February 28, 2022 
 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 $74,150   11.1% $28,972   5.2% $90,008   10.1% $90,126   11.0%
IT Services  66,770   10.0   73,087   13.2   82,743   9.1   80,804   9.9 
Dental Practice Management Software  58,995   6.5   35,038   4.3 
Real Estate Services  53,399   6.0   53,506   6.6 
Consumer Services  44,522   5.0   38,234   4.7 
Healthcare Services  38,237   4.3   42,054   5.1 
Education Services  62,064   9.3   40,384   7.1   35,511   4.0   35,309   4.3 
Education Software  35,864   4.0   33,656   4.1 
HVAC Services and Sales  35,063   3.9   29,976   3.7 
Structured Finance Securities(1)  44,436   6.7   49,779   9.0   33,493   3.7   38,030   4.7 
Healthcare Services  41,996   6.2   42,410   7.7 
Specialty Food Retailer  34,660   5.2   -   0.0   28,986   3.2   34,013   4.2 
Education Software  31,318   4.7   88,090   15.9 
Marketing Orchestration Software  28,705   3.2   28,777   3.5 
Sports Management  25,666   3.9   25,469   4.6   26,695   3.0   26,654   3.3 
Consumer Services  25,188   3.8   181   0.0 
Dental Practice Management Software  23,777   3.6   23,659   4.3 
Cyber Security  21,816   3.3   13,174   2.4 
HVAC Services and Sales  19,952   3.0   14,894   2.7 
Direct Selling Software  25,998   2.9   -   - 
Talent Acquisition Software  19,826   3.0   -   0.0   25,516   2.9   19,652   2.4 
Real Estate Services  18,272   2.7   18,032   3.3 
Restaurant  24,721   2.8   15,686   1.9 
Financial Services  24,560   2.7   23,540   2.9 
Hospitality/Hotel  22,000   2.5   19,925   2.4 
Legal Software  21,194   2.4   7,425   0.9 
Investment Fund  19,770   2.2   25,140   3.1 
Mentoring Software  17,850   2.7   -   0.0   18,310   2.0   18,321   2.2 
Marketing Services  17,461   2.6   17,372   3.1   17,131   1.9   17,327   2.1 
Payroll Services  17,315   2.6   18,333   3.3   16,488   1.8   17,000   2.1 
Hospitality/Hotel  17,171   2.6   17,080   3.1 
Facilities Maintenance  10,716   1.6   6,193   1.1 
Public Safety/Local Government Software  10,517   1.6   -   0.0 
Employee Collaboration Software  9,445   1.4   -   0.0   11,524   1.3   10,000   1.2 
Insurance Software  11,197   1.3   10,921   1.3 
Non-profit Services  9,940   1.1   10,039   1.2 
Waste Services  9,000   1.4   9,000   1.6   8,994   1.0   9,000   1.1 
Industrial Products  8,683   1.0   8,427   1.0 
Dental Practice Management  8,805   1.3   7,133   1.3   8,658   1.0   8,403   1.0 
Non-profit Services  8,142   1.2   5,554   1.0 
Industrial Products  7,870   1.2   9,047   1.6 
Healthcare Supply  5,415   0.8   5,422   1.0 
Financial Services Software  7,227   0.8   5,940   0.7 
Field Service Management  4,023   0.6   4,018   0.7   6,925   0.8   6,981   0.9 
Office Supplies  3,622   0.5   3,610   0.7   3,760   0.4   3,726   0.5 
Corporate Education Software  3,258   0.5   1,050   0.2   3,448   0.4   3,306   0.4 
Restaurant  2,688   0.4   2,141   0.4 
Cyber Security  2,375   0.3   1,636   0.2 
Staffing Services  1,282   0.2   925   0.2   2,060   0.2   1,912   0.2 
Consumer Products  699   0.1   693   0.1 
Healthcare Products Manufacturing  625   0.1   567   0.1   634   0.1   714   0.1 
Consumer Products  531   0.1   475   0.1 
Financial Services  470   0.1   419   0.1 
Corporate Governance  -   0.0   13,265   2.4 
Property Management  -   0.0   14,578   2.6 
Facilities Maintenance  500   0.1   482   0.1 
Healthcare Supply  -   -   5,194   0.6 
Total $666,097   100.0% $554,313   100.0% $894,533   100.0% $817,567   100.0%

 

 

(1)As of AugustMay 31, 2021,2022 and February 28, 2022, 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 investmentsCLO, as well as the unsecured notes and equity interests in the subordinated notes and F-R-3 Notes of Saratoga CLO.SLF JV.

 


The following table shows Saratoga CLO’s portfolio composition by industry grouping at fair value at AugustMay 31, 20212022 and February 28, 2021:2022:

 

Saratoga CLO

 

 August 31, 2021  February 28, 2021  May 31, 2022  February 28, 2022 
 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 $114,242   17.7% $105,326   17.9% $113,563   19.0% $123,124   19.4%
Services: Business  70,957   11.0   55,588   9.4   60,341   10.0   69,491   10.9 
High Tech Industries  61,153   9.5   50,106   8.5   59,399   9.9   60,048   9.4 
Services: Consumer  41,306   7.0   41,393   6.5 
Healthcare & Pharmaceuticals  41,094   6.4   46,689   7.9   39,275   6.5   43,136   6.9 
Services: Consumer  37,114   5.7   31,604   5.4 
Telecommunications  31,746   4.9   29,878   5.1   25,150   4.3   27,058   4.2 
Consumer goods: Durable  24,427   4.1   21,085   3.2 
Automotive  26,380   4.1   19,159   3.2   23,881   4.0   24,207   3.7 
Beverage, Food & Tobacco  20,957   3.4   22,086   3.4 
Chemicals, Plastics, & Rubber  19,197   3.1   22,669   3.5 
Media: Advertising, Printing & Publishing  21,919   3.4   19,826   3.3   18,541   3.1   19,660   3.1 
Aerospace & Defense  21,779   3.3   25,952   4.4 
Chemicals, Plastics, & Rubber  21,062   3.2   23,302   3.9 
Beverage, Food & Tobacco  19,655   3.0   17,998   3.1 
Retail  17,997   2.9   16,050   2.5 
Containers, Packaging & Glass  19,219   3.0   18,822   3.2   15,056   2.4   15,253   2.4 
Hotel, Gaming & Leisure  19,165   3.0   20,515   3.4   14,748   2.5   16,572   2.6 
Consumer goods: Non-durable  18,978   2.9   19,343   3.3   13,477   2.2   14,359   2.2 
Consumer goods: Durable  16,831   2.6   13,143   2.1 
Aerospace & Defense  12,791   2.1   14,369   2.2 
Media: Broadcasting & Subscription  12,592   1.9   9,426   1.6   12,258   2.0   11,539   1.8 
Construction & Building  11,880   1.8   5,362   0.9   10,736   1.8   11,102   1.7 
Retail  11,750   1.8   12,880   2.1 
Capital Equipment  11,458   1.8   9,961   1.7   9,770   1.6   10,062   1.6 
Media: Diversified & Production  8,559   1.3   6,035   1.0   8,732   1.5   9,203   1.4 
Utilities: Oil & Gas  8,136   1.3   8,235   1.3   7,960   1.3   8,095   1.3 
Metals & Mining  6,658   1.1   6,846   1.1 
Forest Products & Paper  8,124   1.3   6,954   1.2   5,597   0.9   9,367   1.5 
Metals & Mining  6,891   1.1   6,127   1.0 
Transportation: Consumer  4,756   0.8   4,891   0.8 
Wholesale  5,652   0.9   5,841   1.0   3,983   0.7   4,155   0.7 
Transportation: Consumer  4,947   0.8   6,183   1.0 
Utilities: Electric  4,066   0.6   4,209   0.7 
Transportation: Cargo  3,805   0.6   5,812   1.0   3,492   0.6   3,752   0.6 
Energy: Electricity  3,724   0.6   4,547   0.8   3,409   0.6   3,660   0.6 
Utilities: Electric  2,306   0.4   4,026   0.6 
Environmental Industries  996   0.2   1,550   0.2 
Energy: Oil & Gas  1,906   0.3   2,208   0.4   167   0.0   155   0.0 
Environmental Industries  1,478   0.2   989   0.2 
Total $646,262   100.0% $592,020   100.0% $600,926   100.0% $638,963   100.0%

 


Portfolio composition by geographic location at fair value

The following table shows our portfolio composition by geographic location at fair value at AugustMay 31, 20212022 and February 28, 2021.2022. The geographic composition is determined by the location of the corporate headquarters of the portfolio company.

 

 August 31, 2021  February 28, 2021  May 31, 2022  February 28, 2022 
 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 $228,294   34.3% $167,397   30.2% $267,304   29.9% $257,199   31.5%
West  158,529   23.7   145,907   26.3   213,499   23.9   183,643   22.5 
Midwest  97,850   14.7   110,125   19.9   155,510   17.4   160,718   19.7 
Southwest  68,386   10.3   39,334   7.1   103,875   11.6   62,475   7.6 
Northeast  43,438   6.5   7,314   1.3   93,409   10.4   85,414   10.4 
Northwest  21,816   3.3   13,174   2.4   2,375   0.3   1,636   0.2 
Other(1)  47,784   7.2   71,062   12.8   58,561   6.5   66,482   8.1 
Total $666,097   100.0% $554,313   100.0% $894,533   100.0% $817,567   100.0%

 

 

(1)As of August 31, 2021, comprisedComprised of our investmentsinvestment in the subordinated notes and F-2-R-3 Notes of Saratoga CLO, as well as the unsecured notes and foreign investments. As of February 28, 2021, comprised of our investmentsequity interests in the subordinated notes, F-R-3 Notes of Saratoga CLO and foreign investments.SLF JV.

 

Results of operations

 

Operating results for the three and six months ended AugustMay 31, 20212022 and AugustMay 31, 20202021 was as follows:

 

 For the three months ended  For the six months ended  For the three months
ended		 
 August 31,
2021		  August 31,
2020		  August 31,
2021		  August 31,
2020		  May 31,
2022		  May 31,
2021		 
 ($ in thousands)  ($ in thousands) 
Total investment income $18,441  $13,856  $35,257  $27,153  $18,679  $16,816 
Total operating expenses  12,048   8,521   26,308   12,800   10,703   14,260 
Net investment income  6,393   5,335   8,949   14,353   7,976   2,556 
Net realized gain (loss) from investments  1,502   12   3,412   20   163   1,910 
Income tax (provision) benefit from realized gain on investments  (449)  -   (449)  -   69   - 
Net change in unrealized appreciation (depreciation) on investments  3,377   16,580   20,189   (15,370)  (9,333)  16,813 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  (1,329)  (116)  (1,559)  152   (362)  (230)
Realized losses on extinguishment of debt  (1,552)  -   (1,552)    
Net increase (decrease) in net assets resulting from operations $7,942  $21,811  $28,990  $(845) $(1,487) $21,049 

 


Investment income

 

The composition of our investment income for three and six months ended AugustMay 31, 20212022 and AugustMay 31, 20202021 was as follows:

 

 For the three months ended  For the six months ended  For the three months
ended		 
 August 31, 2021  August 31, 2020  August 31, 2021  August 31, 2020  May 31,
2022		  May 31,
2021		 
 ($ in thousands)  ($ in thousands) 
Interest from investments $15,114  $12,260  $28,801  $24,411  $16,606  $13,687 
Interest from cash and cash equivalents  1   2   2   13   -   - 
Management fee income  814   626   1,633   1,260   816   818 
Dividend Income  659   -   1,057   -   300   399 
Structuring and advisory fee income  1,038   940   2,340   1,254   853   1,302 
Other income  815   28   1,425   215   104   610 
Total investment income $18,441  $13,856  $35,258  $27,153  $18,679  $16,816 

 

For the three months ended AugustMay 31, 2021,2022, total investment income increased $4.6$1.9 million, or 33.1%11.1%, to $18.4$18.7 million from $13.9$16.8 million for the three months ended AugustMay 31, 2020.2021. Interest income from investments increased $2.9 million, or 23.3%21.3%, to $15.1$16.6 million for the three months ended AugustMay 31, 20212022 from $12.3$13.7 million for the three months ended AugustMay 31, 2020. This reflects the impact of2021. Interest income from investment increased due to the increase of $158.0$216.8 million, or 31.1%32.0%, in total investments at AugustMay 31, 2022 from $677.9 million at May 31, 2021, from $508.1 million at August 31, 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 AugustMay 31, 2021,2022, the weighted average current yield on investments was 8.2%7.7%, down from 9.6%8.6% at AugustMay 31, 2020,2021, which partially offset some of the impact resulting fromincrease in interest income due to the increased investments.

 

For the sixthree months ended AugustMay 31, 2021, total investment income increased $8.1 million, or 29.8% to $35.3 million from $27.2 million for the six months ended August2022 and May 31, 2020. Interest income from investments increased $4.4 million, or 18.0%, to $28.8 million for the six months ended August 31, 2021, from $24.4 million for the six months ended August 31, 2020. This reflects the impact of the increase of $158.0 million, or 31.1% in total investments at August 31, 2021 from $508.1 million at August 31, 2020, offset by (i) the reduction in LIBOR during this same period and (ii) the increase in equity positions that are not interest-bearing.

For the three and six months ended August 31, 2021 and August 31, 2020, total PIK income was $0.8$0.2 million and $0.4 million, respectively and $1.1 million and $1.1$0.3 million, respectively.

 

Management fee income reflects the fee income received for managing the Saratoga CLO. For the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, total management fee income was $0.8 million and $0.6$0.8 million, respectively. For the six months ended August 31, 2021 and August 31, 2020, total management fee income was $1.6 million and $1.3 million, respectively. The increase is reflecting the upsizing of the CLO at year-end with greater management fees being earned on the increased assets under management in the CLO.

 

For the three and six months ended AugustMay 31, 20212022 and AugustMay 31, 20220,2021, total dividend income was $0.7$0.3 million and $0.0 million, respectively, and $1.1 million and $0.0$0.4 million, respectively. Dividends received areis recorded in the consolidated statements of operations when earned.earned, and the decrease primarily reflects dividend income received on various preferred equity investments last year that were not received this year.

 

For the three and six months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, total structuring and advisory fee income was $1.0 million and $0.9 million, respectively, and $2.3 million and $1.3 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.

 

For the three and six months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, other income was $0.8$0.1 million and $0.03 million, respectively, and $1.4 million and $0.2$0.6 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 increasedecrease was driven primarily driven by dividends received on certain preferred equity investments, as well as prepayment penalties earned from certain redemptions.redemptions in the prior year that did not recur this year.

 


Operating expenses

 

The composition of our operating expenses for the three and six months ended AugustMay 31, 20212022 and AugustMay 31, 20202021 was as follows:

 

 For the three months ended  For the six months ended  For the three months ended 
 August 31,
2021		  August 31,
2020		  August 31,
2021		  August 31,
2020		  May 31, 2022  May 31, 2021 
 ($ in thousands)  ($ in thousands) 
Interest and debt financing expenses $5,184  $3,327  $9,525  $5,893  $6,872  $4,341 
Base management fees  3,002   2,209   5,761   4,370   3,802   2,759 
Incentive management fees expense (benefit)  2,018   1,530   7,281   (329)  (1,903)  5,263 
Professional fees  461   368   968   754   417   507 
Administrator expenses  713   602   1,406   1,158   750   694 
Insurance  86   68   173   135   87   86 
Directors fees and expenses  101   75   192   135   110   92 
General & administrative and other expenses  453   334   944   685   667   491 
Income tax expense (benefit)  30   8   58   (1)  (99)  28 
Total operating expenses $12,048  $8,521  $26,308  $12,800  $10,703  $14,260 

 

For the three months ended AugustMay 31, 2021,2022, total operating expenses increaseddecreased $3.5 million, or 41.4%24.7%, compared to the three months ended AugustMay 31, 2020. For the six months ended August 31, 2021, total operating expenses increased $13.5 million, or 105.5% compared to the three months ended August 31, 2020.2021.

 

For the three months ended AugustMay 31, 2021,2022, interest and debt financing expenses increased $1.9$2.5 million, or 55.8%58.3%, compared to the three months ended AugustMay 31, 2020.2021. The increase is primarily attributable to an increase in average outstanding debt from $265.3$286.2 million for the three months ended AugustMay 31, 20202021 to $425.9$591.3 million for the three months ended AugustMay 31, 2021,2022, primarily reflecting (i) the issuance of variousthe 4.375% 2026 Notes and the 4.35% 2027 Notes during the year ended February 28, 20212022, and (ii) the six months ended August 31, 2021, includingissuance of the 7.25% 2025 Notes, the 7.75% 2025 Notes, the 6.25%6.00% 2027 Notes and the 4.375% 2026 Notes during the six months ended August 31, 2021.

For the six months ended August 31, 2021, interest and debt financing expenses increased $3.6 million, or 61.7% compared to the six months ended August 31, 2020. The increase is primarily attributable to an increase in average outstanding debt from $241.3 million for the three months ended AugustMay 31, 2020 to $378.3 million for the three months ended August 31, 2021, primarily reflecting the issuance of various Notes during the year ended February 28, 2021 and the six months ended August 31, 2021, including the 7.25% 2025 Notes, the 7.75% 2025 Notes and the 6.25% 2027 Notes, and the 4.375% 2026 Notes during the six months ended August 31, 2021.2022.

 

For the three and six months ended AugustMay 31, 20212022 and AugustsMay 31, 2020,2021, the weighted average interest rate on our outstanding indebtedness was 4.26%4.06% and 4.32%, respectively and 4.39% and 4.18%5.27%, 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 compared toand 4.35% 2026 Notes, the redemption of the 6.25% 2025 Notes, and the issuance of lower cost SBA debentures over the past year.

 

As of AugustMay 31, 20212022 and February 28, 2021,2022, the SBA debentures represented 41.9%33.3%  and 56.2%36.2% of overall debt, respectively.

 

For the three months ended AugustMay 31, 2021,2022, base management fees increased $0.8$1.0 million, or 35.9%37.8%, from $2.2$2.8 million to $3.0$3.8 million compared to the three months ended AugustMay 31, 2020.2021. The increase in base management fees results from the 35.9%25.8% increase in the average value of our total assets, less cash and cash equivalents, from $500.8$625.5 million for the three months ended AugustMay 31, 20202021 to $680.6$862.0 million  for the three months ended AugustMay 31, 2021. For the six months ended August 31, 2021, base management fees increased $1.4 million, or 31.8% from $4.4 million to $5.8 million compared to the six months ended August 31, 2020. The increase in base management fees results from the 31.8% increase in the average value of our total assets, less cash and cash equivalents, from $495.3 million for the three months ended August 31, 2020 to $653.0 million for the three months ended August 31, 2021.2022.

 

For the three months ended AugustMay 31, 2021,2022, incentive management fees increased $0.5decreased $7.1 million, or 31.9%135.5%, compared to the three months ended AugustMay 31, 2020.2021. The first part of the incentive management fees increasedfee on income decreased from $1.4$1.6 million for the three months ended AugustMay 31, 20202021 to $1.7$0.0 million for the three months ended AugustMay 31, 2021,2022, reflecting the increased performance during this quarter.Company’s net investment income being below the hurdle based on net asset value for incentive fee purposes. The incentive management fees related tofee on capital gains increaseddecreased from a $0.1$3.7 million expense for the three months ended AugustMay 31, 20202021 to a $0.3$(1.8) million expensebenefit for the three months ended AugustMay 31, 2021,2022, both reflecting the incentive fee income on net unrealized appreciation recognized last year and the incentive fee expense on net unrealized appreciation this quarter across numerous investments.


For the six months ended August 31, 2021, incentive management fees increased $7.6 million, compared to the six months ended August 31, 2020. The first part of the incentive management fees increased from $2.8 million for the six months ended August 31, 2020 to $3.2 million for the six months ended August 31, 2021, reflecting the increased performance during this quarter. The incentive management fees related to capital gains increased from a $(3.1) million benefit for the six months ended August 31, 2020 to a $4.0 million expense for the six months ended August 31, 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.during both these periods.

 

For the three and six months ended AugustMay 31, 2021,2022, professional fees increaseddecreased $0.1 million, or 25.4%17.7%, and increased $0.2 million, or 28.3%, respectively, compared to the three and six months ended AugustMay 31, 2020.2021. 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 six months ended AugustMay 31, 2021, administrator expenses increased $0.1$0.05 million, or 18.3%8.1%, and increased $0.2 million, or 21.4%, respectively, compared to the three and six months ended AugustMay 31, 2020.2021.


 

As discussed above, the increase in interest and debt financing expenses for the three months ended AugustMay 31, 20212022 compared to the three months ended AugustMay 31, 20202021 is primarily attributable to an increase in the average dollar amount of outstanding debt. During the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, the average borrowings outstanding under the Encina Credit Facility and the Madison Credit Facility was $23.8$20.0 million and $0.0$4.1 million, respectively, and the average weighted average interest rate on the outstanding borrowing under the Credit Facility was 4.86% and 6.37%, respectively. For the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, the average borrowings outstanding of SBA debentures was $181.1$214.9 million and $170.0$158.4 million, respectively. For the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 2.65%2.58% and 3.02%2.93%, respectively. During the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, the average dollar amount of our 6.25% fixed-rate 2025 Notes outstanding was $57.4$0.0 million and $60.0 million, respectively. During the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, 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 three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, 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 three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, the average dollar amount of our 6.25% fixed-rate 2027 Notes outstanding was $15.0 million and $0.0$15.0 million, respectively. During the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, the average dollar amount of our 4.375% fixed-rate 2026 Notes outstanding was $115.2$175.0 million and $0.0$50.0 million, respectively.

As discussed above, the increase in interest and debt financing expenses for the six months ended August 31, 2021 compared to the six months ended August 31, 2020 is primarily attributable to an increase in the average dollar amount of outstanding debt. During the six months ended August 31, 2021 and August 31, 2020, the average borrowings outstanding under the Credit Facility was $9.5 million and $0.0 million, respectively. For the six months ended August 31, 2021 and August 31, 2020, the average borrowings outstanding of SBA debentures was $169.8 million and $163.7 million, respectively. For the six months ended August 31, 2021 and August 31, 2020, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 2.78% and 3.09%, respectively. During the sixthree months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, the average dollar amount of our 6.25% fixed-rate 2025 Notes outstanding was $58.7 million and $60.0 million, respectively. During the six months ended August 31, 2021 and August 31, 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 six months ended August 31, 2021 and August 31, 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 six months ended August 31, 2021 and August 31, 2020, the average dollar amount of our 6.25%4.35% fixed-rate 2027 Notes outstanding was $15.0$75.0 million and $0.0 million, respectively. During the sixthree months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, the average dollar amount of our 4.375%6.00% fixed-rate 20262027 Notes outstanding was $84.3$43.8 million and $0.0 million, respectively.

 

For the three months ended AugustMay 31, 20212022 and AugustMay 31, 2020,2021, there were income tax expense (benefits) of $0.03$(0.1) million and $0.01 million, respectively. For the six months ended August 31, 2021 and August 31, 2020, there were income tax expense (benefits) of $0.06 million and $(0.001)$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, 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 AugustMay 31, 2021,2022, the Company had $134.8$10.1 million of sales, repayments, exits or restructurings resulting in $1.5$0.2 million of net realized gains.

Three Months ended May 31, 2022
            
Issuer Asset Type Gross Proceeds  Cost  Net
Realized
Gain (Loss)		 
Censis Technologies Equity Interests $      -  $             -  $68,731 
Texas Teachers of Tomorrow, LLC Equity Interests  -   -   24,977 
V Rental Holdings LLC Equity Interests  -   -   68,800 

The Company received escrow payments from the prior sales of its investments in Censis Technologies, Texas Teachers of Tomorrow, LLC and V Rental Holdings, LLC.


For the sixthree months ended AugustMay 31, 2021, the Company had $149.8$14.9 million of sales, repayments, exits or restructurings resulting in $3.4$1.9 million of net realized gains.

Six Months ended August 31, 2021
Issuer Asset Type Gross Proceeds  Cost  Net
Realized
Gain (Loss)		 
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)
V Rental Holdings LLC Equity Interests  2,344,817   365,914   1,978,903 

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.Three Months ended May 31, 2021

Issuer Asset Type Gross Proceeds  Cost  Net
Realized
Gain		 
V Rental Holdings LLC Equity Interests $2,276,055  $365,914  $1,910,141 

 

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 August 31, 2020, the Company had $23.3 million of sales, repayments, exits or restructurings resulting in $0.01 million of net realized gains. For the six months ended August 31, 2020, the Company had $70.7 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 AugustMay 31, 2021,2022, our investments had a net change in unrealized appreciationdepreciation of $3.4$9.2 million versus a net change in unrealized appreciation of $16.6$16.8 million for the three months ended AugustMay 31, 2020. For the six months ended August 31, 2021, our investments had a net change in unrealized appreciation of $20.2 million versus a net change in unrealized depreciation of $15.4 million for the three months ended August 31, 2020.2021. The most significant cumulative net change in unrealized appreciation (depreciation) for the sixthree months ended AugustMay 31, 2022 were the following (dollars in thousands):

Three Months ended May 31, 2022
Issuer Asset Type Cost  Fair Value  Total Unrealized Appreciation (Depreciation)  YTD Change in Unrealized  Appreciation (Depreciation) 
PDDS Buyer, LLC First Lien Term Loan & Equity Interests  50,787   58,995             8,208                3,113 
Pepper Palace, Inc. First Lien Term Loan & Equity Interests  34,458   28,986   (5,472)  (4,954)
Saratoga Senior Loan Fund I JV, LLC Equity Interests  13,125   6,645   (6,480)  (5,371)
Saratoga Investment Corp. CLO 2013-1, Ltd. Structured Finance Securities $30,974  $24,118  $(6,856) $(3,238)

The $4.3 million net change in unrealized appreciation in our investment in PDDS Buyer, LLC was primarily driven by overall strong company performance and a recent acquisition.

The $4.9 million net change in unrealized depreciation in our investment in Pepper Palace, Inc. was primarily driven by overall company performance.

The $5.3 million net change in unrealized depreciation in our investment in Saratoga Senior Loan Fund I JV, LLC was primarily driven by the decrease in market prices of the underlying CLO warehouse assets.

The $3.2 million net change in unrealized depreciation in our investment in Saratoga Investment Corp. CLO 2013-1, Ltd. was primarily driven by the increase in discount rates, impact of LIBOR changes and overall market conditions. 


The most significant cumulative net change in unrealized appreciation for the three months ended May 31, 2021 were the following (dollars in thousands):

 

Six Months ended August 31, 2021
Three Months ended May 31, 2021Three Months ended May 31, 2021
Issuer Asset Type Cost  Fair Value  Total
Unrealized
Appreciation
(Depreciation)		  YTD Change in
Unrealized
Appreciation
(Depreciation)		  Asset Type Cost  Fair Value  Total Unrealized Appreciation  YTD Change in Unrealized  Appreciation 
My Alarm Center, LLC Equity Interests $-  $-  $   -  $4,686 
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  14,034   21,816   7,782   4,680  First Lien Term Loan & Equity Interests  14,032   19,131   5,098   1,996 
Netreo Holdings, LLC First Lien Term Loan & Equity Interests  23,942   33,770   9,828   4,240 
Saratoga Investment Corp. CLO 2013-1, Ltd. Structured Finance Securities  34,505   35,061   556   2,953 
Schoox, Inc. Equity Interests  476   3,258   2,783   2,783 
Texas Teachers of Tomorrow, LLC First Lien Term Loan & Equity Interests  26,274   29,324   3,050   2,663 
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  3,969   6,217   2,248   1,221  First Lien Term Loan & Equity Interests  45,709   47,395   1,686   659 
Village Realty Holdings LLC Equity Interests  366   2,209   1,843   (1,843)
Passageways, Inc. First Lien Term Loan & Equity Interests  10,953   17,598   6,645   (2,311)
V Rental Holdings LLC Equity Interests  -   -   -   (1,843)

 

The $4.7$4.5 million of unrealized appreciation in our investment in Saratoga Investment Corp. CLO 2013-1, Ltd. was primarily driven by improved market performance, combined with outperformance achieved from the assets in the CLO.

The $4.3 million net change in unrealized appreciation in our investment in My Alarm Center, LLCPassageways, Inc. was primarily driven by the reversal of previously recognized unrealized depreciation reclassified to realized losses.

The $4.7 million net change in unrealized appreciation in our investment in GreyHeller LLC was driven by improved financial performance.growth, including a potential upcoming acquisition.

 

The $4.2 million net change in unrealized appreciation in our investment in Netreo Holdings, LLC was primarily driven by growth and improved financial performance.

 


The $3.0 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.

The $2.8$2.1 million net change in unrealized appreciation in our investment in Schoox, Inc. was primarily driven by overall company performance.new customers and increased customer demand.

 

The $2.7$2.0 million net change in unrealized appreciation in our investment in Texas Teachers of Tomorrow,GreyHeller LLC was primarily driven by improved financial performance.

 

The $1.2$0.9 million net change in unrealized appreciation in our investment in Top Gun Pressure Washing, LLC was primarily driven by improved financial performance.

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

 

The $1.8 million net change in unrealized depreciation in our investment in Village Realty Holdings, LLC was primarily 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 six months ended August 31, 2020 were the following (dollars in thousands):

Six Months ended August 31, 2020
Issuer Asset Type Cost  Fair Value  Total
Unrealized
Appreciation		  YTD Change in
Unrealized
Appreciation		 
C2 Educational Systems First Lien Term Loan $15,989  $13,030  $(2,959) $(2,977)
Knowland Group, LLC Second Lien Term Loans  15,768   13,355   (2,413)  (2,306)
ArbiterSports, LLC First Lien Term Loan  26,782   24,943   (1,839)  (1,815)
Elyria Foundry Company, L.L.C. Second Lien Term Loan & Equity Interests  10,969   1,572   (9,397)  (1,652)
Vector Controls Holding Co., LLC First Lien Term Loan & Equity Interests  7,849   9,668   1,819   (1,110)
Destiny Solutions Inc. First Lien Term Loan & Equity Interests  37,708   36,856   (852)  (1,054)
Texas Teachers of Tomorrow, LLC First Lien Term Loan & Equity Interests  19,394   18,759   (635)  (767)
Kev Software Inc. First Lien Term Loan  20,999   20,398   (601)  (717)
My Alarm Center, LLC Equity Interests  4,867   1,527   (3,340)  (470)

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 AugustMay 31, 2022, we recorded a net decrease in net assets resulting from operations of $1.5 million. Based on 12,112,372 weighted average common shares outstanding as of May 31, 2022, our per share net decrease in net assets resulting from operations was $0.12 for the three months ended May 31, 2022. For the three months ended May 31, 2021, we recorded a net increase in net assets resulting from operations of $7.9$21.0 million. Based on 11,175,43611,170,045 weighted average common shares outstanding as of AugustMay 31, 2021, our per share net increase in net assets resulting from operations was $0.71$1.88 for the three months ended AugustMay 31, 2021. For the three months ended August 31, 2020, we recorded a net increase in net assets resulting from operations of $21.8 million. Based on 11,207,142 weighted average common shares outstanding as of August 31, 2020, our per share net increase in net assets resulting from operations was $1.95 for the three months ended August 31, 2020. 

For the six months ended August 31, 2021, we recorded a net increase in net assets resulting from operations of $29.0 million. Based on 11,172,787 weighted average common shares outstanding as of August 31, 2021, our per share net increase in net assets resulting from operations was $2.59 for the six months ended August 31, 2021. For the six months ended August 31, 2020, we recorded a net decrease in net assets resulting from operations of $0.8 million. Based on 11,212,315 weighted average common shares outstanding as of August 31, 2020, our per share net decrease in net assets resulting from operations was $0.08 for the three months ended August 31, 2020. 

 


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-qualityhigh- quality debt investments that mature in one year or less, the Encina Credit Facility, our continued access to the SBA debentures, future borrowings and future offerings of debt and equity 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 our equity ATM program, 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 the Treasury regulations and a revenue procedure issued by the Internal Revenue Service (“IRS”), 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 that the aggregate amount of cash to be distributed to all stockholders must be 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, including a majority of our independent 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 236.1%179.3% as of AugustMay 31, 20212022 and 347.1%209.2% as of February 28, 2021.2022. 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.

Due to the diverse capital sources available to us at this time, we believe we have adequate liquidity to support our near-term capital requirements. As the impact of COVID-19 continues to evolve, we will continually evaluate our overall liquidity position and take proactive steps to maintain that position based on the current circumstances. This “Financial Condition, Liquidity and Capital Resources” section should be read in conjunction with “Recent COVID-19 Developments” above, as well as with the notes of our consolidated financial statements.


 

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, was most recently amended on September 3, 2021 and then fully repaid and terminated on October 4, 2021.

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 3,October 4, 2021. (See Recent Developments).

 

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 ended April 4, 2022, the minimum funding amount was $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 AugustMay 31, 2021,2022, we had $0.0$25.0 million outstanding borrowings under the Encina Credit Facility and $172.0$217.0 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 August 31, 2021 and February 28, 2021 was $33.2 million and $38.9 million, respectively.

Our asset coverage ratio, as defined in the 1940 Act, was 236.1% as of August 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 newSBIC II LP’s SBIC license will provideprovides 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 ofindependent directors approved of our becoming subject to a reduced 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 AugustMay 31, 2021,2022, our SBIC LP subsidiary had $75.0 million in regulatory capital and $108.0$86.0 million in SBA-guaranteed debentures outstanding and our SBIC II LP subsidiary had $87.5 million in regulatory capital and $64.0$131.0 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”). 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.Co Inc. 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,(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 the 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 in 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. 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 beingwere 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 in 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 beingwere amortized over the term of the 6.25% 2025 Notes.

 

On July 20, 2021, the Company caused notices to be issued to the holders of the 6.25% 2025 Notes regarding the Company’s exercise of its option to redeem, in whole, the issued and outstanding 6.25% 2025 Notes, pursuant to Section 1104 of the Base Indenture and Section 1.01(h) of the Third Supplemental Indenture dated as of August 28, 2018, between the Company and the Trustee. On August 28,31, 2021, the Company redeemed $60.0 million in aggregate principal amount of the issued and outstanding 6.25% 2025 Notes at par, plus the accrued and unpaid interest thereon, through, but excluding, the redemption date of August 30, 2021.par. The 6.25% 2025 Notes were 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 the redemption.full redemption on August 31, 2021.

In connection with the issuance of the 6.25% 2025 Notes, we agreed to the following covenants for the period of time during which the notes are outstanding:

●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 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”“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 AugustMay 31, 2021,2022, the total 7.25% 2025 Notes outstanding was $43.1 million.

 


On July 9, 2020, the Company issued $5.0 million in 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. 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 AugustMay 31, 2021,2022, the total 7.75% 2025 Notes outstanding was $5.0 million.

 

On December 29, 2020, the Company issued $5.0 million in aggregate principal amount of our 6.25% fixed-rate Notesnotes 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. 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.6.25% Notes 2027.

 

On January 28, 2021, the Company issued $10.0 million in aggregate principal amount of our 6.25% fixed rate Notes due in 2027 (the “Secondthe 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.6.25% Notes 2027.

 

At AugustMay 31, 2021,2022, the total 6.25% 2027 Notes outstanding was $15.0 million.

 

On March 10, 2021, the Company issued $50.0 million in 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.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 in 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 AugustMay 31, 2021,2022, the total 4.375% Notes 2027 outstanding was $175.0 million.

On January 19, 2022, the Company issued $75.0 million in aggregate principal amount of our 4.35% fixed-rate Notes due in 2027 (the “4.35% Notes 2027”) for net proceeds of $73.0 million, based on the public offering price of 99.317% of the aggregate principal amount of the 4.35% Notes 2027, after deducting the underwriting commissions of approximately $1.5 million. Offering costs incurred were approximately $0.2 million.  Interest on the 4.35% Notes 2027 is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.35% per year, beginning August 28, 2022. The 4.35% Notes 2027 mature on February 28, 2027 and may be redeemed in whole or in part at the Company’s option at any time prior to November 28, 2026, at par plus a “make-whole” premium, 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 $1.7 million related to the 4.35% Notes 2027 have been capitalized and are being amortized over the term of the Notes.

 


At May 31, 2022 the total 4.35% Notes 2027 outstanding was $75.0 million.

On April 27, 2022, the Company issued $87.5 million in aggregate principal amount of our 6.00% fixed-rate notes due 2027 (the “6.00% Notes 2027”) for net proceeds of $84.8 million after deducting underwriting commissions of approximately $2.7 million. Offering costs incurred were approximately $0.1 million. On May 10, 2022, the underwriters partially exercised their option to purchase an additional $10.0 million in aggregate principal amount of its 6.00% Notes 2027. Net proceeds to the Company were $9.7 million after deducting underwriting commissions of approximately $0.3 million. Interest on the 6.00% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 2021and November 30, at a rate of 6.00% per year, beginning August 31, 2022. The 6.00% Notes 2027 mature on April 30, 2027 and commencing April 27, 2024, may be redeemed in whole or in part at any time or from time to time at our option. We expect to use the net proceeds from this offering to make investments in middle-market companies (including investments made through our SBIC Subsidiaries) in accordance with our investment objective and strategies and for general corporate purposes. We may use the net proceeds from this offering to redeem all of the outstanding 7.25% 2025 Notes, which are redeemable by us commencing June 24, 2022.  Financing costs of $3.0 million related to the 6.00% Notes 2027 have been capitalized and are being amortized over the term of the 6.00% 2027 Notes. The 6.00% 2027 Notes are listed on the NYSE under the trading symbol “SAT” with a par value of $25.00 per share.

At May 31, 2022 the total 6.00% Notes 2027 outstanding was $97.5 million.

At May 31, 2022 and February 28, 2021,2022, the fair value of investments, cash and cash equivalents and cash and cash equivalents, reserve accounts were as follows:

 

 August 31, 2021  February 28, 2021  May 31, 2022  February 28, 2022 
 Fair Value  Percentage of Total  Fair Value  Percentage of Total  Fair Value  Percentage of
Total		  Fair Value  Percentage of
Total		 
 ($ in thousands)  ($ in thousands) 
Cash and cash equivalents $60,268   8.1% $18,828   3.2% $94,939   9.5% $47,258   5.4%
Cash and cash equivalents, reserve accounts  13,041   1.8   11,087   1.9   6,550   0.7   5,613   0.6 
First lien term loans  493,592   66.7   440,456   75.4   718,090   72.0   631,573   72.6 
Second lien term loans  44,869   6.1   24,930   4.3   38,629   3.9   44,385   5.1 
Unsecured term loans  2,688   0.4   2,141   0.4   15,910   1.6   38,030   4.4 
Structured finance securities  44,436   6.0   49,779   8.5   33,493   3.4   15,931   1.8 
Equity interests  80,512   10.9   37,007   6.3   88,411   8.9   87,648   10.1 
Total $739,406   100.0% $584,228   100.0% $996,022   100.0% $870,438   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 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. This agreement was terminated as of 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 an ATM offering.the Agents, or to them, as principal for their account. As of AugustMay 31, 2021,2022, the Company sold 5,4414,840,361 shares for gross proceeds of $0.2$124.0 million at an average price of $28.86$25.61 for aggregate net proceeds of $0.2$122.4 million (net of transaction costs). During the three and six months ended AugustMay 31, 2021,2022, there were no shares sold pursuant to the Company sold 5,441 shares for gross proceeds of $0.2 million at an average price of $28.86 for aggregate net proceeds of $0.2 million (net of transaction cost).equity distribution agreement with the Agents.


 

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. 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. As of AugustMay 31, 2021,2022, the Company purchased 458,435650,612 shares of common stock, at the average price of $18.64$20.86 for approximately $8.3$13.6 million pursuant to the Share Repurchase Plan. During the three months ended AugustMay 31, 2021,2022, the Company purchased 9,623142,177 shares of common stock, at the average price of $25.85$26.27 for approximately $0.2$3.8 million pursuant to the Share Repurchase Plan. During the six months ended August 31, 2021,

On May 26, 2022, the Company purchased 49,623declared a dividend of $0.53 per share payable on June 29, 2022, to common stockholders of record on June 14, 2022. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, at the average price of $25.23 for approximately $1.3 million pursuant to the Share Repurchase Plan.Company's DRIP. Based on shareholder elections, the dividend consisted of approximately $5.1 million in cash and 48,590 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 $22.40 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 15, 16, 17, 21, 22, 23, 24, 27, 28 and 29, 2022.

On February 24, 2022, the Company declared a dividend of $0.53 per share payable on March 28, 2022, to common stockholders of record on March 14, 2022. 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 $5.3 million in cash and 42,825 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 $25.89 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on March 15, 16, 17, 18, 21, 22, 23, 24, 25 and 28, 2022.

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. Based on shareholder elections, the dividend consisted of approximately $5.3 million in cash and 41,520 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 $26.85 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on January 5, 6, 7, 10, 11, 12, 13, 14, 18 and 19, 2022.

 

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’s DRIP. Based on shareholder elections, the dividend consisted of approximately $4.1 million in cash and 33,100 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 179.3% as of May 31, 2022 and 209.3% as of February 28, 2022.

Subsequent Events

On June 14, 2022, the Company caused notices to be issued to the holders of the 7.25% 2025 Notes regarding the Company’s exercise of its option to redeem, in whole, the issued and outstanding 7.25% 2025. The Company will redeem $43.125 million in aggregate principal amount of the issued and outstanding 7.25% 2025 Notes on July 14, 2022 (the “Redemption Date”). The 7.25% 2025 Notes will be redeemed at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon, through, but excluding, the Redemption Date.

Contractual obligations

The following table shows our payment obligations for repayment of debt and other contractual obligations at AugustMay 31, 2021:2022:

 

    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 $            -  $            -  $        -  $      -  $             -  $25,000  $             -  $25,000  $-  $- 
SBA debentures  172,000   -   8,000   53,660   110,340   217,000   -   15,000   33,660   168,340 
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  175,000   -   -   175,000   -   175,000   -   -   175,000   - 
4.35% 2027 Notes  75,000   -   -   75,000   - 
6.25% 2027 Notes  15,000   -   -   -   15,000   15,000   -   -   -   15,000 
6.00% 2027 Notes  97,500   -   -   97,500   - 
Total Long-Term Debt Obligations $410,125  $-  $8,000  $276,785  $125,340  $652,625  $-  $40,000  $429,285  $183,340 


 

Off-balance sheet arrangements

 

As of AugustMay 31, 20212022 and February 28, 2021,2022, the Company’s off-balance sheet arrangements consisted of $58.7$96.0 million and $58.8$83.4 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 AugustMay 31, 20212022 and February 28, 20212022 is shown in the table below (dollars in thousands):

 

  August 31,
2021		  February 28,
2021		 
At Company’s discretion      
Artemis Wax Corp. $15,000  $- 
Axero Holdings, LLC  3,000   - 
Book4Time, Inc.  2,000   2,000 
CLEO Communications Holding, LLC  -   630 
Granite Comfort, LP  5,000   - 
GreyHeller LLC  11,000   15,000 
Netreo Holdings, LLC  1,000   10,000 
Passageways, Inc.  -   5,000 
Pepper Palace, Inc.  3,000   - 
Procurement Partners, LLC  3,000   - 
Top Gun Pressure Washing, LLC  175   3,175 
Village Realty Holdings LLC  -   10,000 
Total  43,175   45,805 
         
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required        
Axero Holdings, LLC  2,000   - 
GoReact  -   2,000 
HemaTerra Holding Company, LLC  2,000   2,000 
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   - 
   15,500   13,000 
Total $58,675  $58,805 

Recent Developments

Subsequent to August 31, 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 quarter ended August 31, 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 September 13, 2021, we entered into a sixth amendment to the Credit Facility to, among other things, extend the commitment termination date of the Credit Facility from September 17, 2021 to October 1, 2021, with no change to the maturity date of September 17, 2025.

  May 31,
2022		  February 28,
2022		 
At Company’s discretion      
Artemis Wax $15,000  $3,700 
Ascend Software LLC  5,000   5,000 
Axero Holdings  3,000   3,000 
Davisware  2,000   2,000 
Granite Comfort  5,000   - 
JDXpert  5,000   - 
Lee’s Famous Recipe Chicken  4,000   10,000 
Netreo Holdings, LLC  1,500   4,000 
Pepper Palace  3,000   3,000 
Procrement Partners  2,800   2,800 
Saratoga Senior Loan Fund I JV LLC  17,500   17,500 
Sceptre Hospitality Resources  250   1,000 
Book4Time, Inc.  -   2,000 
Total  64,050   54,000 
         
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required        
Ascend Software LLC  5,200   6,500 
Axero Holdings  900   2,000 
Axero Holdings - Revolver  500   500 
Davisware, LLC  1,000   1,000 
Exigo - DDTL  4,167   - 
Exigo - Revolver  833   - 
GDS Holdings US, Inc.  1,786   2,786 
Granite Comfort  5,000   - 
GoReact  500   2,500 
JDXpert  1,000   - 
Madison Logic - Revolver  1,084   1,084 
New England Dental Partners  4,500   4,500 
Pepper Palace - DDTL  2,000   2,000 
Pepper Palace - Revolver  2,500   2,500 
Zollege  1,000   1,000 
Lee’s Famous Recipe Chicken  -   3,000 
   31,970   29,370 
Total $96,020  $83,370 

 

The Company has formed a wholly-owned special purpose entity, Saratoga Investment Funding II LLC, a Delaware limited liability company (“SIF II”), forbelieves its assets will provide adequate coverage to satisfy these unfunded commitments. As of May 31, 2022, the purposeCompany had cash and cash equivalents of entering into a $50.0$94.9 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$6.6 million in available borrowings under the credit facility. This 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 to up to $75.0 million. The terms of the 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 credit facility is three years. Advances under the 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 this credit facility, all remaining amounts outstanding on the Company's existing revolving credit facility with Madison Capital Funding, LLC was repaid and the facility terminated.Encina Credit Facility.

 


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 portionSubstantially all 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. 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.Encina Credit Facility. In addition, substantially all of our assets and our Encina Credit Facility have LIBOR transition language to include the use of an acceptable replacement rate, such as SOFR. At AugustMay 31, 2021,2022, we had $410.1$627.6 million of borrowings outstanding. There were $25.0 million borrowings outstanding under the Encina Credit Facility as of May 31, 2022.

 

We have analyzed the potential impact of changes in interest rates on interest income from investments. Assuming that our investments as of AugustMay 31, 20212022 were to remain constant for a full fiscal year and no actions were taken to alter the existingcurrent interest rate terms, a hypothetical change of a 1.0% increase in interest rates would cause a corresponding increase of approximately $0.4$7.0 million to our interest income. Conversely, a hypothetical change of a 1.0% decrease in interest rates would cause a corresponding decrease of approximately $0.01$3.4 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 facilitythe Encina Credit Facility, are fixed rate, and our credit facility is currently undrawn.rate.

 

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 AugustMay 31, 2021.2022. 

 

Basis
Point
Change		 Increase
(Decrease)
in Interest
Income		 (Increase)
Decrease
in Interest
Expense		 Increase
(Decrease) in Net
Investment
Income		 Increase
(Decrease) in Net
Investment
Income per Share		 
     Increase Increase
(Decrease)		 
 Increase (Increase) (Decrease) in Net 
Basis (Decrease) Decrease in Net Investment 
Point in Interest in Interest Investment Income 
Change Income  Expense  Income  per Share 
 ($ in thousands)     ($ in thousands)   
-100 $(11) $-  $(11) $(0.00) $(3,375) $-  $(3,375) $(0.28)
-50  (11)  -   (11)  (0.00)  (2,578)  -   (2,578)  (0.21)
-25  (11)  -   (11)  (0.00)  (1,348)  -   (1,348)  (0.11)
25  23   -   23   0.00   1,571   -   1,571   0.13 
50  57   -   57   0.01   3,322   -   3,322   0.27 
100  409   -   409   0.04   6,978   (86)  6,892   0.57 
200  3,728   -   3,728   0.33   14,697   (336)  14,361   1.19 
300  8,775             -   8,775   0.79   22,416   (586)  21,830   1.80 
400  14,205   -   14,205   1.27   30,136   (836)  29,300   2.42 

 


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 AugustMay 31, 20212022 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, Saratoga 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 sixthree months ended AugustMay 31, 20212022 to the risk factors discussed in “Item 1A. Risk Factors” of our Annual Report on Form 10-K.10-K for the fiscal year ended February 28, 2022. 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.

 

Changes relating to the LIBOR calculation process may adversely affect the value of our portfolio of LIBOR-indexed, floating- rate debt securities.

LIBOR, the London Interbank Offered Rate, 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. We typically use LIBOR as a reference rate in floating-rate loans we extend to portfolio companies such that the interest due to us pursuant to a term loan extended to a portfolio company is calculated using LIBOR. The terms of our debt investments generally include minimum interest rate floors which are calculated based on LIBOR. Further, the borrowings of the senior secured revolving credit facility entered into with Madison Capital Funding LLC (the “Credit Facility”) Credit Facility typically use LIBOR as a reference rate.

In the recent past, concerns have been publicized that some of the member banks surveyed by the British Bankers’ Association (“BBA”) in connection with the calculation of The London Inter-bank Offered Rate (“LIBOR”) across a range of maturities and currencies may have been under-reporting or otherwise manipulating the inter-bank lending rate applicable to them in order to profit on their derivative positions or to avoid an appearance of capital insufficiency or adverse reputational or other consequences that may have resulted from reporting inter-bank lending rates higher than those they actually submitted. A number of BBA member banks entered into settlements with their regulators and law enforcement agencies with respect to alleged manipulation of LIBOR, and investigations by regulators and governmental authorities in various jurisdictions are ongoing.

Actions by the ICE Benchmark Administration, regulators or law enforcement agencies as a result of these or future events, may result in changes to the manner in which LIBOR is determined. Potential changes, or uncertainty related to such potential changes may adversely affect the market for LIBOR-based securities, including our portfolio of LIBOR-indexed, floating-rate debt securities. In addition, any further changes or reforms to the determination or supervision of LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR, which could have an adverse impact on the market for LIBOR-based securities or the value of our portfolio of LIBOR-indexed, floating-rate debt securities, loans, and other financial obligations or extensions of credit held by or due to us.

On July 27, 2017, the U.K. Financial Conduct Authority, which regulates LIBOR, announced that it intends to stop persuading or compelling banks to submit LIBOR rates after 2021. We have exposure to LIBOR, including in financial instruments that mature after 2021. Our exposure arises from the value of our portfolio of LIBOR-indexed, floating-rate debt securities. On November 30, 2020, ICE Benchmark Administration (“IBA”), the administrator of LIBOR, with the support of the United States Federal Reserve and the FCA, announced plans to consult on ceasing publication of USD LIBOR on December 31, 2021 for only the one week and two month USD LIBOR tenors, and on June 30, 2023 for all other USD LIBOR tenors, which the FCA subsequently confirmed on March 5, 2021. The United States Federal Reserve concurrently issued a statement advising banks to stop new USD LIBOR issuances by the end of 2021. Such announcements indicate that the continuation of LIBOR on the current basis cannot and will not be guaranteed after 2021. It appears highly likely that LIBOR will be discontinued or modified by 2021.


The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions (the “ARRC”), is considering replacing U.S. dollar LIBOR with a new index calculated by short term repurchase agreements, backed by Treasury securities called the Secured Overnight Financing Rate (“SOFR”). The first publication of SOFR was released in April 2018. On July 29, 2021, the ARRC formally recommended SOFR as its preferred alternative replacement rate for LIBOR. Whether or not SOFR attains market traction as a LIBOR replacement remains a question and the future of LIBOR at this time is uncertain. 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 any other reforms to LIBOR that may be enacted. 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 for or value of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us or on our overall financial condition or results of operations. In addition, if LIBOR ceases to exist, we may need to renegotiate 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 a lower interest rate, which could have an adverse impact on our results of operations.

The Company intends to monitor the developments with respect to the scheduled phasing out of LIBOR after 2021 and work with its portfolio companies and lenders to ensure such transition away from LIBOR will have minimal impact on its financial condition, but can provide no assurances regarding the impact of the discontinuation of LIBOR.

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).
4.9Form 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).
   
4.10Description 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 CompanySaratoga Investment Corp. 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).
   
4.124.7 Form of 7.25% Notes due 2025 (incorporated by reference to Exhibit 4.11 hereto).
   
4.134.8 Eighth Supplemental Indenture between the CompanySaratoga Investment Corp. 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).
   
4.144.9Ninth Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank National Association, as trustee, relating to the 4.375% Note due 2027 (incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 814-00732) filed on January 19, 2022).
4.10Tenth  Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank National Association, as trustee, relating to the 6.00% Note due 2027 (incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 814-00732) filed on April 27, 2022).
4.11 Form of 4.375% Notes due 2026 (incorporated by reference to Exhibit 4.134.8 hereto).

4.12Form of 4.375% Notes due 2027 (incorporated by reference to Exhibit 4.9 hereto).
4.13Form of 6.00% Notes due 2027 (incorporated by reference to Exhibit 4.10 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).
   
10.5 Credit, 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).
10.6Form 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).
   
10.7Amendment 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).
   
10.9Amended 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).
   
10.2110.9 AmendedCredit and Restated Collateral AdministrationSecurity Agreement, dated February 26,as of October 4, 2021, by and betweenamong Saratoga Investment Funding II, LLC, Saratoga Investment Corp., Saratoga Investment Corp. CLO 2013-1, Ltd.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 Saratoga Investment Corp.’s Current Report on Form 8-K filed on March 4,October 7, 2021).
   
1110.10 ComputationEquity Pledge Agreement, dated as of Per Share Earnings (included in Note 11October 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 the consolidated financial statements contained in this report)Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 7, 2021).
10.11Loan 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).
10.12Saratoga 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).
   
21.131.1* 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

 


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: October 5, 2021July 6, 2022By:

/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

 

124