UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022March 31, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 814-01351

STEELE CREEK CAPITAL CORPORATION

Maryland85-1327288
(State or other jurisdiction of

incorporation or organization)		(I.R.S. Employer

Identification No.)
210 S. College Street, Suite 1690, Charlotte,

North Carolina		28244
(Address of principal executive offices)(Zip Code)

(704) 343-6011

(Registrant’s telephone number, including area code)

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

Title of each classTrading Symbol(s)Name of each exchange on which

registered
NoneNoneNone

Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.001 per share

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

As of AugustMay 15, 2022,2023, the registrant had 5,415,2285,663,023 shares of common stock, $0.001 par value per share, outstanding.

 

 

 

 

STEELE CREEK CAPITAL CORPORATION

 

TABLE OF CONTENTS

 

  Page
PART I. FINANCIAL INFORMATION1
   
Item 1.Consolidated Financial Statements1
   
 Consolidated Statements of Assets and Liabilities as of June 30, 2022March 31, 2023 (unaudited) and December 31, 202120221
   
 Consolidated Statements of Operations for the three and six months ended June 30,March 31, 2023 and 2022 and 2021 (unaudited)2
   
 Consolidated Statements of Changes in Net Assets for the three and six months ended June 30,March 31, 2023 and 2022 and 2021 (unaudited)3
   
 Consolidated Statements of Cash Flows for the sixthree months ended June 30,March 31, 2023 and 2022 and 2021 (unaudited)4
   
 Consolidated Schedules of Investments as of June 30, 2022March 31, 2023 (unaudited) and December 31, 202120225
   
 Notes to Consolidated Financial Statements (unaudited)1526
   
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations2638
   
Item 3.Quantitative and Qualitative Disclosures About Market Risk4354
   
Item 4.Controls and Procedures4354
   
PART II. OTHER INFORMATION4455
   
Item 1.Legal Proceedings4455
   
Item 1A.Risk Factors4455
   
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds4455
   
Item 3.Defaults Upon Senior Securities4455
   
Item 4.Mine Safety Disclosures4455
   
Item 5.Other Information4455
   
Item 6.Exhibits4556
   
Signatures 4657

 

i

 

 

Part I. Financial Information

 

Item 1. Consolidated Financial Statements

 

Steele Creek Capital Corporation

Consolidated Statements of Assets and Liabilities

(in thousands, except per share data)

 

  June 30,
2022		  December 31,
2021		 
  (unaudited)    
Assets      
Investments:      
Non-controlled/non-affiliate company investments, at fair value (amortized cost of $139,722 and $106,443, respectively) $131,581  $106,997 
Cash  15,121   8,449 
Receivable for investments sold  17,148   62,363 
Prepaid expenses and other assets  435   151 
Interest receivable  263   310 
Total assets $164,548  $178,270 
         
Liabilities        
Credit facility  86,300   70,380 
Payable for investments purchased  28,165   58,872 
Management fees payable  143   269 
Interest payable  9   11 
Incentive fees payable  -   309 
Accounts payable and accrued expenses  529   312 
Directors’ fees payable  -   17 
Distributions payable  815   1,107 
Total liabilities  115,961   131,277 
         
Commitments and contingencies (Note 8)        
         
Net Assets:        
Common shares, $0.001 par value, 5,274,748 shares authorized, 5,274,748 and 4,311,321 shares issued and outstanding, respectively $5  $4 
Paid-in-capital in excess of par value  56,921   46,633 
Total distributable earnings  (8,339)  356 
Total net assets $48,587  $46,993 
         
Total liabilities and net assets $164,548  $178,270 
         
Net asset value per share $9.21  $10.90 
  March 31, 2023  December 31, 2022 
  (unaudited)    
Assets      
Investments:      
Non-controlled/non-affiliated company investments, at fair value (amortized cost of $136,253 and $137,084, respectively) $128,455  $127,619 
Cash  6,601   4,693 
Receivable for investments sold  10,476   18,277 
Prepaid expenses and other assets  160   218 
Interest receivable  661   363 
Total assets $146,353  $151,170 
         
Liabilities        
Credit facility  81,900   83,150 
Payable for investments purchased  10,016   15,253 
Management fees payable  320   319 
Interest payable  15   28 
Incentive fees payable  67   24 
Accounts payable and accrued expenses  574   664 
Distributions payable  1,067   1,357 
Total liabilities  93,959   100,795 
         
Commitments and contingencies (Note 8)        
         
Net Assets:        
Common shares, $0.001 par value, 5,710,410 shares authorized, 5,710,410 and 5,643,073 shares issued and outstanding, respectively $6  $6 
Paid-in-capital in excess of par value  60,987   60,372 
Total distributable (deficit)  (8,599)  (10,003)
Total net assets $52,394  $50,375 
         
Total liabilities and net assets $146,353  $151,170 
         
Net asset value per share $9.18  $8.93 

 

The accompanying notes are an integral part of these consolidated financial statements


1

Steele Creek Capital Corporation

Consolidated Statement of Operations

(unaudited)

(in thousands, except per share data)

  Three months ended
June 30,
2022		  Six months ended
June 30,
2022		  Three months ended
June 30,
2021		  Six months ended
June 30,
2021		 
             
Investment income:            
Non-controlled/non-affiliate company investments:            
Interest income $1,805  $3,276  $899  $1,793 
Other income  -   -   6   15 
Total investment income  1,805   3,276   905   1,808 
                 
Expenses:                
Management fees  414   845   451   740 
Interest and debt financing expenses  499   844   273   511 
Professional fees  79   157   139   298 
Incentive fees  -   (110)  95   205 
Offering costs - paid by Moelis Asset  -   -   39   99 
Administration expenses  55   103   37   75 
Directors’ fees  20   40   22   42 
Custody fees  8   15   8   15 
Organizational costs  -   -   -   36 
Organizational costs - paid by Moelis Asset  -   -   -   24 
Other general and administrative expenses  245   414   6   55 
Total expenses  1,320   2,308   1,070   2,100 
Less: management fees waived  (271)  (481)  (216)  (331)
Incentive fee waiver reversal  -   -   (70)  (135)
Net expenses  1,049   1,827   784   1,634 
Net investment income  756   1,449   121   174 
                 
Realized and unrealized (loss) gain on investments:                
Net realized gain on non-controlled/non-affiliate company investments  59   166   597   1,325 
Net change in unrealized (depreciation) appreciation on non-controlled/non-affiliate company investments  (7,430)  (8,696)  37   40 
                 
Total net realized and unrealized (loss) gain on investments  (7,371)  (8,530)  634   1,365 
                 
Net (decrease) increase in net assets resulting from operations $(6,615) $(7,081) $755  $1,539 
                 
Per share data:                
Net investment income per share - basic and diluted $0.15  $0.29  $0.04  $0.06 
Net (decrease) increase in net assets resulting from operations per share - basic and diluted $(1.28) $(1.42) $0.25  $0.54 
Weighted average shares outstanding - basic and diluted  5,157   4,980   3,081   2,868 

The accompanying notes are an integral part of these consolidated financial statements

 

2

  Three months ended
March 31,
2023		  Three months ended
March 31,
2022		 
Investment income:      
Non-controlled/non-affiliated company investments:      
Interest income $3,217  $1,471 
Total investment income  3,217   1,471 
         
Expenses:        
Management fees  372   431 
Interest and debt financing expenses  1,302   346 
Professional fees  95   78 
Incentive fees  76   (110)
Administration expenses  58   48 
Directors’ fees  20   20 
Custody fees  12   7 
Other general and administrative expenses  119   169 
Total expenses  2,054   989 
Less: management fees waived  (52)  (210)
Less: incentive fees waived  (8)  - 
Net expenses  1,994   779 
Net investment income  1,223   692 
         
Realized and unrealized (loss) gain on investments:        
Net realized (loss) gain on non-controlled/non-affiliated company investments  (418)  107 
Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated company investments  1,666   (1,265)
         
Total net realized and unrealized gain (loss) on investments  1,248   (1,158)
         
Net increase (decrease) in net assets resulting from operations $2,471  $(466)
         
Per share data:        
Net investment income per share - basic and diluted $0.21  $0.14 
Net increase (decrease) increase in net assets resulting from operations per share - basic and diluted $0.43  $(0.10)
Weighted average shares outstanding - basic and diluted  5,692   4,802 

 

Steele Creek Capital Corporation

Consolidated Statements of Changes in Net Assets

(unaudited)

(in thousands, except per share data)

  Three months ended
June 30,
2022		  Six months ended
June 30,
2022		  Three months ended
June 30,
2021		  Six months ended
June 30,
2021		 
Operations            
Net investment income $756  $1,449  $121  $174 
Net realized gain on investments  59   166   597   1,325 
Net change in unrealized (depreciation) appreciation on investments  (7,430)  (8,696)  37   40 
Net (decrease) increase in net assets resulting from operations  (6,615)  (7,081)  755   1,539 
                 
Distributions to Stockholders                
Distributions of realized income  (815)  (1,615)  (465)  (901)
                 
Capital Share Transactions                
Issuance of common shares  3,182   10,290   11,808   12,608 
                 
Organizational and offering costs                
Contributions for organizational and offering costs  -   -   -   36 
Deferred offering costs  -   -   39   86 
   -   -   39   122 
                 
Net Assets                
Net (decrease) increase in net assets during the period  (4,248)  1,594   12,137   13,368 
Net assets at beginning of period  52,835   46,993   29,571   28,340 
Net assets at end of period  48,587   48,587   41,708   41,708 
                 
Capital Share Activity                
Issuance of common shares  311   964   1,076   1,149 
Shares issued and outstanding at beginning of period  4,964   4,311   2,706   2,633 
Shares issued and outstanding at end of period  5,275   5,275   3,782   3,782 

The accompanying notes are an integral part of these consolidated financial statements


2

Steele Creek Capital Corporation

Consolidated StatementStatements of Cash FlowsChanges in Net Assets

(unaudited)

(in thousands, except per share data)

 

  Six months ended
June 30,
2022		  Six months ended
June 30,
2021		 
       
Cash flows from operating activities:      
Net (decrease) increase in net assets resulting from operations $(7,081) $1,539 
         
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities        
Purchase of investments  (119,872)  (312,303)
Proceeds from sales of investments and paydowns  86,862   270,591 
Payment in-kind interest income  -   (4)
Adjustment from Moelis Asset for organizational and offering costs  -   36 
Amortization of premium/accretion of discount, net  (104)  (78)
Net realized (gain) loss on investments  (166)  (1,325)
Net change in unrealized depreciation (appreciation) on investments  8,696   (40)
Changes in operating assets and liabilities:        
Receivable for investments sold  45,215   (65,913)
Prepaid expenses and other assets  (284)  38 
Interest receivable  47   (75)
Payable for investments purchased  (30,707)  77,898 
Management fees payable  (126)  236 
Interest payable  (2)  (34)
Inventive fees payable  (309)  69 
Accounts payable and accrued expenses  217   37 
Directors’ fees payable  (17)  4 
Net cash used in operating activities  (17,631)  (29,324)
         
Cash flows from financing activities:        
Proceeds from issuance of common shares  10,290   12,608 
Proceeds from issuance of debt  15,920   17,200 
Payments of offering costs  -   86 
Stockholder distributions paid  (1,907)  (862)
Payments of deferred financing costs  -   - 
Net cash provided by financing activities  24,303   29,032 
         
Net increase in Cash  6,672   (292)
Cash, beginning of period  8,449   3,206 
Cash, end of period $15,121  $2,914 
         
Supplemental disclosure of Cash Flow Information:        
Operating Activities:        
Interest paid $846  $545 
  Three months ended
March 31,
2023		  Three months ended
March 31,
2022		 
Operations      
Net investment income $1,223  $692 
Net realized (loss) gain on investments  (418)  107 
Net change in unrealized appreciation (depreciation) on investments  1,666   (1,265)
Net increase (decrease) in net assets resulting from operations  2,471   (466)
         
Distributions to Stockholders        
Distributions of realized income  (1,067)  (800)
         
Capital Share Transactions        
Issuance of common shares  615   7,108 
         
Net Assets        
Net increase in net assets during the period  2,019   5,842 
Net assets at beginning of period  50,375   46,993 
Net assets at end of period  52,394   52,835 
         
Capital Share Activity        
Issuance of common shares  67   653 
Shares issued and outstanding at beginning of period  5,643   4,311 
Shares issued and outstanding at end of period  5,710   4,964 

 

The accompanying notes are an integral part of these consolidated financial statements

 

4

3

 

 

STEELE CREEK CAPITAL CORPORATION

Steele Creek Capital Corporation

Consolidated ScheduleStatement of InvestmentsCash Flows

June 30, 2022(unaudited)

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above
Index (2)		 Interest Rate Floor /
Base Rate (2)		  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Non-controlled/Non-Affiliate Investments -270.8% of Shareholder’s Equity (3)                              
Investments made in United States Companies                              
Aerospace & Defense                              
Amentum Government Services Holdings LLC First Lien - Term Loan 2/15/29  4.50% S + 4.00%  0.50%  866   862   828   1.6%
HDT Holdco, Inc. First Lien - Term Loan 6/30/27  6.50% L + 5.75%  0.75%  541   527   508   1.0%
MAG DS Corp. First Lien - Term Loan 4/1/27  6.50% L + 5.50%  1.00%  931   894   856   1.8%
Peraton Corp. First Lien - Term Loan 2/1/28  4.50% L + 3.75%  0.75%  970   966   915   1.9%
Propulsion (BC) Midco SARL First Lien - Term Loan 2/12/29  4.50% S + 4.00%  0.50%  1,000   995   950   2.0%
Setanta Aircraft Leasing DAC First Lien - Term Loan 11/2/28  2.00% L + 2.00%  0.00%  1,000   998   954   2.0%
Spirit Aerosystems, Inc. (fka Mid-Western Aircraft Systems, Inc and Onex Wind Finance LP.) First Lien - Term Loan 1/15/25  4.25% L + 3.75%  0.50%  989   986   966   2.0%
Vertex Aerospace Services Corp. First Lien - Term Loan 12/6/28  4.75% L + 4.00%  0.75%  998   993   950   2.0%
Total Aerospace & Defense                    7,221   6,927   14.3%
                               
Automotive                              
Autokiniton US Holdings, Inc. First Lien - Term Loan 4/6/28  5.00% L + 4.50%  0.50%  1,491   1,479   1,379   2.9%
First Brands Group, LLC First Lien - Term Loan 3/30/27  6.00% L + 5.00%  1.00%  992   993   947   1.9%
Holley Inc. First Lien - Term Loan 11/17/28  4.50% L + 3.75%  0.75%  934   935   884   1.8%
Total Automotive                    3,407   3,210   6.6%
                               
Banking, Finance, Insurance & Real Estate                              
AssuredPartners, Inc. First Lien - Term Loan 2/12/27  4.00% S + 3.50%  0.50%  998   995   933   1.9%
Baldwin Risk Partners, LLC First Lien - Term Loan 10/14/27  4.00% L + 3.50%  0.50%  1,102   1,090   1,051   2.2%
Blackstone Mortgage Trust, Inc. First Lien - Term Loan 4/23/26  4.00% S + 3.50%  0.50%  853   841   827   1.7%
Citadel Securities T/L B (01/21) First Lien - Term Loan 2/2/28  2.50% L + 2.50%  0.00%  1,247   1,205   1,203   2.5%
Deerfield Dakota Holding, LLC First Lien - Term Loan 4/9/27  4.75% S + 3.75%  1.00%  997   993   937   1.9%
DRW Holdings, LLC First Lien - Term Loan 2/24/28  3.75% L + 3.75%  0.00%  893   889   859   1.8%
FinCo I LLC First Lien - Term Loan 6/27/25  2.50% L + 2.50%  0.00%  491   491   469   1.0%
HIG Finance 2 Limited First Lien - Term Loan 11/12/27  4.00% L + 3.25%  0.75%  1,481   1,481   1,402   2.8%
IMA Financial Group, Inc. First Lien - Term Loan 11/1/28  4.25% L + 3.75%  0.50%  498   491   471   1.0%
Jane Street Group, LLC First Lien - Term Loan 1/26/28  2.75% L + 2.75%  0.00%  990   981   954   2.0%
KREF Holdings X LLC First Lien - Term Loan 9/1/27  4.00% L + 3.50%  0.50%  498   498   473   1.0%
LendingTree, Inc. First Lien - Term Loan 9/15/28  4.50% L + 3.75%  0.75%  1,500   1,487   1,411   2.8%
Newport Parent, Inc. First Lien - Term Loan 12/10/27  7.50% L + 6.50%  1.00%  481   465   464   1.0%
Paysafe Group Holdings II Limited First Lien - Term Loan 6/28/28  3.25% L + 2.75%  0.50%  995   963   918   1.9%
Resolute Investment Managers, Inc. First Lien - Term Loan 4/30/24  5.25% L + 4.25%  1.00%  706   702   660   1.4%
Russell Investments US Institutional Holdco, Inc. First Lien - Term Loan 5/30/25  4.50% L + 3.50%  1.00%  1,583   1,567   1,482   2.9%
Ryan Specialty Group, LLC First Lien - Term Loan 9/1/27  3.75% L + 3.00%  0.75%  494   496   476   1.0%
Total Banking, Finance, Insurance & Real Estate                    15,635   14,990   30.8%
                               
Capital Equipment                              
American Trailer World Corp. First Lien - Term Loan 3/3/28  4.50% L + 3.75%  0.75%  990   981   855   1.8%
DMT Solutions Global Corporation First Lien - Term Loan 7/2/24  7.50% L + 7.50%  0.00%  706   707   669   1.4%
DS Parent, Inc. First Lien - Term Loan 12/10/28  6.50% L + 5.75%  0.75%  975   947   938   1.9%
Energy Acquisition LP First Lien - Term Loan 6/26/25  4.25% L + 4.25%  0.00%  1,165   1,151   1,067   2.2%
Novae LLC First Lien - Term Loan 12/22/28  5.75% S + 5.00%  0.75%  776   769   734   1.5%
Novae LLC First Lien - Delayed Draw Loan 12/22/28  5.75% S + 5.00%  0.75%  222   220   210   0.4%
Total Capital Equipment                    4,775   4,473   9.2%
                               
Chemicals, Plastics, & Rubber                              
Albaugh, LLC First Lien - Term Loan 2/16/29  4.75% S + 3.75%  1.00%  208   206   200   0.4%
Bakelite UK Intermediate Ltd. First Lien - Term Loan 5/29/29  4.50% S + 4.00%  0.50%  1,000   995   932   1.9%

 


STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

June 30, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread
Above
Index (2)		 Interest Rate Floor /
Base Rate (2)		  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
DCG Acquisition Corp. First Lien - Term Loan 9/30/26  4.50% L + 4.50%  0.00%  1,234   1,237   1,160   2.4%
Sparta U.S. Holdco LLC First Lien - Term Loan 8/2/28  4.25% L + 3.50%  0.75%  498   495   476   1.0%
Total Chemicals, Plastics, & Rubber                    2,933   2,768   5.7%
                               
Construction & Building                              
Janus International Group, LLC First Lien - Term Loan 2/12/25  4.25% L + 3.25%  1.00%  890   892   844   1.7%
Michael Baker International, LLC First Lien - Term Loan 12/1/28  5.75% L + 5.00%  0.75%  995   986   970   2.0%
Smyrna Ready Mix Concrete, LLC First Lien - Term Loan 3/23/29  4.75% S + 4.25%  0.50%  1,250   1,213   1,159   2.4%
Total Construction & Building                    3,091   2,973   6.1%
                               
Consumer Goods: Durable                              
Hunter Douglas Holding B.V. First Lien - Term Loan 2/26/29  4.00% S + 3.50%  0.50%  1,000   995   865   1.8%
LHS Borrower, LLC First Lien - Term Loan 2/16/29  5.25% S + 4.75%  0.50%  998   988   864   1.8%
Mannington Mills, Inc. First Lien - Term Loan 8/6/26  3.75% L + 3.75%  0.00%  434   434   404   0.8%
Pelican Products, Inc. First Lien - Term Loan 12/29/28  4.75% L + 4.25%  0.50%  995   992   930   1.9%
Total Consumer Goods: Durable                    3,409   3,063   6.3%
                               
Consumer Goods: Non-Durable                              
Conair Holdings LLC First Lien - Term Loan 5/17/28  4.25% L + 3.75%  0.50%  1,143   1,138   962   2.0%
Total Consumer Goods: Non-Durable                    1,138   962   2.0%
                               
Containers, Packaging & Glass                              
Canister International Group Inc. First Lien - Term Loan 12/21/26  4.75% L + 4.75%  0.00%  491   489   473   1.0%
Clydesdale Acquisition Holdings, Inc. First Lien - Term Loan 4/13/29  4.75% S + 4.25%  0.50%  1,500   1,463   1,408   2.9%
Pactiv Evergreen Inc. First Lien - Term Loan 9/22/28  4.00% L + 3.50%  0.50%  995   967   935   1.9%
Plaze, Inc. First Lien - Term Loan 8/3/26  4.50% L + 3.75%  0.75%  664   657   621   1.3%
Sabert Corporation First Lien - Term Loan 12/10/26  5.50% L + 4.50%  1.00%  1,176   1,174   1,120   2.3%
Total Containers, Packaging & Glass                    4,750   4,557   9.4%
                               
Energy: Electricity                              
Astoria Energy LLC First Lien - Term Loan 12/10/27  4.50% L + 3.50%  1.00%  965   962   912   1.9%
Hamilton Projects Acquiror, LLC First Lien - Term Loan 6/17/27  5.25% L + 4.50%  0.75%  966   947   928   1.9%
Total Energy: Electricity                    1,909   1,840   3.8%
                               
Energy: Oil & Gas                              
AL NGPL Holdings, LLC First Lien - Term Loan 4/14/28  4.75% L + 3.75%  1.00%  707   712   690   1.4%
CQP Holdco LP First Lien - Term Loan 6/5/28  4.25% L + 3.75%  0.50%  1,238   1,232   1,170   2.4%
Lucid Energy Group II Borrower, LLC First Lien - Term Loan 11/22/28  5.00% L + 4.25%  0.75%  2,491   2,460   2,465   5.1%
Prairie ECI Acquiror LP First Lien - Term Loan 3/11/26  4.75% L + 4.75%  0.00%  500   491   469   1.0%
Total Energy: Oil & Gas                    4,895   4,794   9.9%
                               
Forest Products & Paper                              
Schweitzer-Mauduit International, Inc. First Lien - Term Loan 4/20/28  4.50% L + 3.75%  0.75%  990   982   941   1.9%
Total Forest Products & Paper                    982   941   1.9%
                               
Healthcare & Pharmaceuticals                              
Alvogen Pharma US, Inc. First Lien - Term Loan 12/29/23  6.25% L + 5.25%  1.00%  950   927   839   1.7%
ANI Pharmaceuticals, Inc. First Lien - Term Loan 11/19/27  6.75% L + 6.00%  0.75%  995   983   957   2.0%
ASP Navigate Acquisition Corp. First Lien - Term Loan 10/6/27  5.50% L + 4.50%  1.00%  992   993   940   1.9%
Athletico Management, LLC First Lien - Term Loan 2/15/29  4.75% S + 4.25%  0.50%  500   484   476   1.0%
Aveanna Healthcare LLC First Lien - Term Loan 7/17/28  4.25% L + 3.75%  0.50%  403   402   357   0.7%
Aveanna Healthcare LLC (4) First Lien - Delayed Draw Loan 7/17/28  4.25% L + 3.75%  0.50%  94   -   (11)  0.0%
  Three months ended
March 31,
2023		  Three months ended
March 31,
2022		 
Cash flows from operating activities:      
Net increase (decrease) in net assets resulting from operations $2,471  $(466)
         
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities        
Purchase of investments  (49,931)  (72,716)
Proceeds from sales of investments and paydowns  50,480   50,157 
Payment in-kind interest income  (18)  - 
Amortization of premium/accretion of discount, net  (119)  (57)
Net realized loss (gain) on investments  418   (107)
Net change in unrealized (appreciation) depreciation on investments  (1,666)  1,265 
Changes in operating assets and liabilities:        
Receivable for investments sold  7,801   32,565 
Prepaid expenses and other assets  58   (831)
Interest receivable  (298)  (26)
Payable for investments purchased  (5,237)  (22,048)
Management fees payable  1   (49)
Interest payable  (13)  (7)
Incentive fees payable  43   (309)
Accounts payable and accrued expenses  (90)  74 
Net cash provided by (used in) operating activities  3,900   (12,555)
         
Cash flows from financing activities:        
Proceeds from issuance of common shares  615   7,108 
Proceeds from issuance of debt  750   5,620 
Repayments on debt  (2,000)  - 
Stockholder distributions paid  (1,357)  (1,107)
Net cash (used in) provided by financing activities  (1,992)  11,621 
         
Net increase (decrease) in Cash  1,908   (934)
Cash, beginning of period  4,693   8,449 
Cash, end of period $6,601  $7,515 
         
Supplemental disclosure of Cash Flow Information:        
Operating Activities:        
Interest paid $1,316  $353 

 


STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

June 30, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread
Above
Index (2)		 Interest Rate Floor /
Base Rate (2)		  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Bayou Intermediate II, LLC First Lien - Term Loan 8/2/28  5.25% L + 4.50%  0.75%  995   991   948   2.0%
Carestream Dental Technology Parent Limited First Lien - Term Loan 9/2/24  5.00% L + 4.50%  0.50%  688   683   657   1.4%
CCRR Parent, Inc. First Lien - Term Loan 3/6/28  4.50% L + 3.75%  0.75%  988   983   934   1.9%
Confluent Health, LLC First Lien - Term Loan 11/30/28  4.50% L + 4.00%  0.50%  787   784   737   1.5%
Confluent Health, LLC (5) First Lien - Delayed Draw Loan 11/30/28  4.50% L + 4.00%  0.50%  170   33   22   0.0%
FC Compassus, LLC First Lien - Term Loan 12/31/26  5.00% L + 4.25%  0.75%  1,234   1,232   1,098   2.4%
Global Medical Response, Inc. First Lien - Term Loan 10/2/25  5.25% L + 4.25%  1.00%  493   486   459   0.9%
Golden State Buyer, Inc. First Lien - Term Loan 6/21/26  5.50% L + 4.75%  0.75%  953   946   899   1.8%
Help at Home, LLC First Lien - Term Loan 10/29/27  6.00% L + 5.00%  1.00%  877   866   841   1.7%
Help at Home, LLC First Lien - Delayed Draw Loan 10/29/27  6.00% L + 5.00%  1.00%  111   110   106   0.2%
Onex TSG Intermediate Corp. First Lien - Term Loan 2/28/28  5.50% L + 4.75%  0.75%  990   974   926   1.9%
PDS Holdco Inc. First Lien - Term Loan 8/18/28  5.25% L + 4.50%  0.75%  1,354   1,348   1,269   2.6%
PDS Holdco Inc. (6) First Lien - Delayed Draw Loan 8/18/28  5.25% L + 4.50%  0.75%  138   134   125   0.3%
Revspring, Inc. (fka Dantom Systems, Inc.) First Lien - Term Loan 10/11/25  4.25% L + 4.25%  0.00%  1,011   1,005   971   2.0%
SCP Eye Care Services LLC (4) First Lien - Delayed Draw Loan 3/16/28  5.25% L + 4.50%  0.75%  148   -   (6)  0.0%
SCP Eye Care Services LLC First Lien - Term Loan 3/16/28  5.25% L + 4.50%  0.75%  844   842   808   1.7%
TTF Holdings, LLC First Lien - Term Loan 3/31/28  5.00% L + 4.25%  0.75%  635   631   611   1.3%
U.S. Anesthesia Partners, Inc. First Lien - Term Loan 10/2/28  4.75% L + 4.25%  0.50%  1,105   1,100   1,034   2.1%
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) First Lien - Term Loan 12/15/27  5.75% L + 5.25%  0.50%  998   988   885   1.8%
Zelis Cost Management Buyer, Inc. First Lien - Term Loan 9/30/26  3.50% L + 3.50%  0.00%  422   419   398   0.8%
Zotec Partners, LLC First Lien - Term Loan 2/14/24  4.75% L + 3.75%  1.00%  14   14   14   0.0%
Total Healthcare & Pharmaceuticals                    18,358   17,294   35.6%
                               
High Tech Industries                              
Boxer Parent Company Inc. First Lien - Term Loan 10/2/25  3.75% L + 3.75%  0.00%  166   157   155   0.3%
Casa Systems, Inc. First Lien - Term Loan 12/20/23  5.00% L + 4.00%  1.00%  1,488   1,488   1,416   2.9%
CE Intermediate I, LLC First Lien - Term Loan 11/10/28  4.50% L + 4.00%  0.50%  998   988   943   1.9%
ConnectWise, LLC First Lien - Term Loan 9/29/28  4.00% L + 3.50%  0.50%  995   991   914   1.9%
Ingram Micro Inc. First Lien - Term Loan 6/30/28  4.00% L + 3.50%  0.50%  990   981   939   1.9%
LogMeIn, Inc. First Lien - Term Loan 8/31/27  4.75% L + 4.75%  0.00%  988   966   758   1.6%
Monotype Imaging Holdings Inc. First Lien - Term Loan 10/9/26  5.75% L + 5.00%  0.75%  727   724   702   1.4%
Project Leopard Holdings, Inc. First Lien - Term Loan 7/7/23  5.75% L + 4.75%  1.00%  653   652   650   1.3%
Project Leopard Holdings, Inc. First Lien - Term Loan 7/7/23  5.75% L + 4.75%  1.00%  2,230   2,225   2,220   4.6%
Quest Software US Holdings Inc. First Lien - Term Loan 2/1/29  4.75% S + 4.25%  0.50%  1,500   1,486   1,339   2.8%
Rocket Software, Inc. First Lien - Term Loan 11/28/25  4.25% L + 4.25%  0.00%  383   379   357   0.7%
Rocket Software, Inc. First Lien - Term Loan 11/28/25  4.75% L + 4.25%  0.50%  109   106   101   0.2%
Seattle SpinCo, Inc. First Lien - Term Loan 2/26/27  4.50% S + 4.00%  0.50%  1,209   1,198   1,103   2.3%
VeriFone Systems, Inc. First Lien - Term Loan 8/20/25  4.00% L + 4.00%  0.00%  1,392   1,377   1,259   2.6%
Vision Solutions, Inc. (Precisely Software Incorporated) First Lien - Term Loan 4/24/28  4.75% L + 4.00%  0.75%  991   989   901   1.9%
Watlow Electric Manufacturing Company First Lien - Term Loan 3/2/28  4.25% L + 3.75%  0.50%  346   344   325   0.7%
Total High Tech Industries                    15,051   14,082   29.0%
                               
Hotel, Gaming & Leisure                              
Arcis Golf LLC First Lien - Term Loan 11/24/28  4.75% L + 4.25%  0.50%  998   988   965   2.0%
Fertitta Entertainment, LLC First Lien - Term Loan 1/29/29  4.50% S + 4.00%  0.50%  998   995   923   1.9%
Herschend Entertainment Company, LLC First Lien - Term Loan 8/28/28  4.25% L + 3.75%  0.50%  200   198   191   0.4%
Sabre GLBL Inc. First Lien - Term Loan 12/17/27  4.00% L + 3.50%  0.50%  440   439   413   0.8%
Sabre GLBL Inc. First Lien - Term Loan 12/17/27  4.00% L + 3.50%  0.50%  276   275   259   0.5%
Scientific Games International, Inc. First Lien - Term Loan 4/16/29  3.50% S + 3.00%  0.50%  1,000   993   952   2.0%
United AirLines, Inc. First Lien - Term Loan 4/21/28  4.50% L + 3.75%  0.75%  988   983   923   1.9%
Total Hotel, Gaming & Leisure                    4,871   4,626   9.5%


STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

June 30, 2022

(in thousands, except per share data)

Description (1)    Investment Type Maturity Interest Rate (2)  Basis Point Spread
Above
Index (2)		 Interest Rate Floor /
Base
Rate (2)		  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3)  
Media: Advertising, Printing & Publishing                        
Oceankey (U.S.) II Corp. First Lien - Term Loan 12/15/28  4.00% L + 3.50%  0.50%  998   988   943   1.9%
Thryv, Inc. First Lien - Term Loan 3/1/26  9.50% L + 8.50%  1.00%  1,071   1,066   1,050   2.2%
Total Media: Advertising, Printing & Publishing                    2,054   1,993   4.1%
                               
Media: Broadcasting & Subscription                              
LCPR Loan Financing LLC First Lien - Term Loan 10/16/28  3.75% L + 3.75%  0.00%  500   502   485   1.0%
Sinclair Television Group, Inc. First Lien - Term Loan 4/13/29  3.75% S + 3.75%  0.00%  750   728   694   1.4%
Total Media: Broadcasting & Subscription                    1,230   1,179   2.4%
                               
Retail                              
Apro, LLC First Lien - Term Loan 11/14/26  4.50% L + 3.75%  0.75%  1,333   1,326   1,250   2.6%
EG Group Limited First Lien - Delayed Draw Loan 3/31/26  4.75% L + 4.25%  0.50%  992   985   942   1.9%
Great Outdoors Group, LLC First Lien - Term Loan 3/6/28  4.50% L + 3.75%  0.75%  985   981   901   1.9%
Rent-A-Center, Inc. First Lien - Term Loan 2/17/28  3.75% L + 3.25%  0.50%  584   584   528   1.1%
Total Retail                    3,876   3,621   7.5%
                               
Services: Business                              
Access CIG, LLC First Lien - Term Loan 2/27/25  3.75% L + 3.75%  0.00%  1,359   1,351   1,287   2.7%
Ahead DB Holdings, LLC First Lien - Term Loan 10/18/27  4.50% L + 3.75%  0.75%  990   990   934   1.9%
Artera Services, LLC First Lien - Term Loan 3/6/25  4.50% L + 3.50%  1.00%  990   984   788   1.6%
Congruex Group LLC First Lien - Term Loan 5/3/29  6.50% S + 5.75%  0.75%  1,000   975   965   2.0%
DTI Holdco, Inc. First Lien - Term Loan 4/26/29  5.50% S + 4.75%  0.75%  1,250   1,226   1,174   2.4%
Energize Holdco LLC First Lien - Term Loan 12/8/28  4.25% L + 3.75%  0.50%  875   871   826   1.7%
Go Daddy Operating Company, LLC (GD Finance Co, Inc.) First Lien - Term Loan 8/10/27  2.00% L + 2.00%  0.00%  1,496   1,446   1,442   3.0%
Indy US Bidco, LLC First Lien - Term Loan 3/6/28  3.75% L + 3.75%  0.00%  494   492   460   0.9%
Mermaid Bidco Inc. (Datasite) First Lien - Term Loan 12/22/27  4.25% L + 3.50%  0.75%  991   988   922   1.9%
Misys Limited First Lien - Term Loan 6/13/24  4.50% L + 3.50%  1.00%  994   996   899   1.8%
Phoenix Services International LLC First Lien - Term Loan 3/1/25  4.75% L + 3.75%  1.00%  1,466   1,462   1,114   2.3%
Pitney Bowes Inc. First Lien - Term Loan 3/17/28  4.00% L + 4.00%  0.00%  988   979   946   1.9%
Presidio Holdings Inc. First Lien - Term Loan 1/22/27  3.50% L + 3.50%  0.00%  1,000   1,000   950   2.0%
Sitel Group First Lien - Term Loan 8/28/28  4.25% L + 3.75%  0.50%  1,489   1,482   1,435   3.0%
Skopima Consilio Parent LLC First Lien - Term Loan 5/12/28  4.50% L + 4.00%  0.50%  993   987   912   1.9%
Tempo Acquisition, LLC First Lien - Term Loan 8/31/28  3.50% S + 3.00%  0.50%  993   990   943   1.9%
UST Global Inc First Lien - Term Loan 11/20/28  4.25% L + 3.75%  0.50%  995   990   951   2.0%
VM Consolidated, Inc. First Lien - Term Loan 3/26/28  3.25% L + 3.25%  0.00%  2   2   2   0.0%
Total Services: Business                    18,211   16,950   34.9%
                               
Services: Consumer                              
Cimpress plc First Lien - Term Loan 5/17/28  4.00% L + 3.50%  0.50%  990   982   919   1.9%
St. George’s University Scholastic Services T/L B (06/21)   2/10/29  3.75% L + 3.25%  0.50%  249   238   236   0.5%
WW International, Inc. First Lien - Term Loan 4/13/28  4.00% L + 3.50%  0.50%  945   941   750   1.5%
Total Services: Consumer                    2,161   1,905   3.9%
                               
Telecommunications                              
Avaya Inc. First Lien - Term Loan 12/15/27  4.25% L + 4.25%  0.00%  850   840   638   1.3%
CCI Buyer, Inc. First Lien - Term Loan 12/17/27  4.75% L + 4.00%  0.75%  988   980   904   1.9%
ConvergeOne Holdings, Corp. First Lien - Term Loan 1/4/26  5.00% L + 5.00%  0.00%  1,481   1,459   1,274   2.5%
Digi International Inc. First Lien - Term Loan 11/1/28  5.50% L + 5.00%  0.50%  838   823   808   1.7%
Mavenir Systems, Inc. First Lien - Term Loan 8/18/28  5.25% L + 4.75%  0.50%  1,496   1,483   1,399   2.9%
Maxar Technologies Inc. First Lien - Term Loan 6/14/29  4.75% S + 4.25%  0.50%  1,000   955   951   2.0%
Plantronics, Inc. First Lien - Term Loan 7/2/25  2.50% L + 2.50%  0.00%  577   571   569   1.2%
Syniverse Holdings, LLC First Lien - Term Loan 5/13/27  7.50% S + 7.00%  0.50%  1,000   960   889   1.8%
Venga Finance S.a r.l. First Lien - Term Loan 12/3/28  5.50% L + 4.75%  0.75%  1,000   970   935   1.9%
Zayo Group Holdings, Inc. First Lien - Term Loan 3/9/27  3.00% L + 3.00%  0.00%  1,000   996   926   1.9%
Total Telecommunications                    10,037   9,293   19.1%


STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

June 30, 2022

(in thousands, except per share data)

Description (1)   Investment Type Maturity Interest Rate (2)  Basis Point Spread
Above
Index (2)		  Interest Rate Floor /
Base Rate (2)		  Par Amount   Amortized Cost  Fair Value  % of Net Assets(3) 
Transportation: Cargo                        
Carriage Purchaser, Inc. First Lien - Term Loan 9/30/28  5.00% L + 4.25%  0.75%  993   988   910   1.9%
Daseke Companies, Inc. First Lien - Term Loan 3/9/28  4.75% L + 4.00%  0.75%  988   983   923   1.9%
Echo Global Logistics, Inc. First Lien - Term Loan 11/23/28  4.25% L + 3.75%  0.50%  998   995   934   1.9%
Kenan Advantage Group, Inc.,The Second Lien - Term Loan 9/1/27  8.00% L + 7.25%  0.75%  1,000   983   915   1.9%
Stonepeak Taurus Lower Holdings LLC Second Lien - Term Loan 1/28/30  7.50% S + 7.00%  0.50%  2,000   1,972   1,860   3.8%
Total Transportation: Cargo                    5,921   5,542   11.4%
                               
Transportation: Consumer                              
Avolon TLB Borrower 1 (US) LLC First Lien - Term Loan 12/1/27  2.75% L + 2.25%  0.50%  616   597   587   1.2%
First Student Bidco Inc. First Lien - Term Loan 7/21/28  3.50% L + 3.00%  0.50%  363   362   326   0.7%
First Student Bidco Inc. First Lien - Term Loan 7/21/28  3.50% L + 3.00%  0.50%  135   134   121   0.2%
Safe Fleet Holdings LLC First Lien - Term Loan 2/16/29  4.25% S + 3.75%  0.50%  641   638   601   1.2%
Total Transportation: Consumer                    1,731   1,635   3.3%
                               
Utilities: Electric                              
PG&E Corporation First Lien - Term Loan 6/23/25  3.50% L + 3.00%  0.50%  490   488   464   1.0%
Total Utilities: Electric                    488   464   1.0%
                               
Utilities: Oil & Gas                              
AL GCX Holdings, LLC First Lien - Term Loan 5/17/29  4.25% S + 3.75%  0.50%  90   90   88   0.2%
Total Utilities: Oil & Gas                    90   88   0.2%
                               
Total Investments made in United States Companies                    138,224   130,170   267.9%
                               
Investments made in Luxembourg Companies                              
Containers, Packaging & Glass                              
Mar Bidco S.a r.l. First Lien - Term Loan 6/28/28  4.75% L + 4.25%  0.50%  14   14   13   0.0%
Total Containers, Packaging & Glass                    14   13   0.0%
                               
Telecommunications                              
Zacapa S.a r.l. First Lien - Term Loan 3/22/29  4.75% S + 4.25%  0.50%  1,489   1,484   1,398   2.9%
Total Telecommunications                    1,484   1,398   2.9%
                               
Total Investments made in Luxembourg Companies                    1,498   1,411   2.9%
                               
Total Non-controlled/Non-Affiliate Investments                   $139,722  $131,581   270.8%

(1)All investments are non-controlled/non-affiliated investments as defined by the Investment Company Act of 1940 (the “1940 Act”). The provisions of the 1940 Act classify investments based on the level of control that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be “non-controlled” when the Company owns 25% or less of the portfolio company’s voting securities and “controlled” when the Company owns more than 25% of the portfolio company’s voting securities. The provisions of the 1940 Act also classify investments further based on the level of ownership that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as “non-affiliated” when the Company owns less than 5% of a portfolio company’s voting securities and “affiliated” when the Company owns 5% or more of a portfolio company’s voting securities.

(2)The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”) which reset monthly or quarterly. For each such investment, the Fund has provided the spread over LIBOR and the current contractual interest rate in effect at June 30, 2022. As of June 30, 2022, rates for 1M L, 3M L and 6M L are 1.79%, 2.29%, and 2.94% respectively. Due to uncertainties with LIBOR, investments are starting to transition from LIBOR to Secured Overnight Financing Rate (“SOFR” or “S”). As of June 30, 2022, rates for 1M S, 3M S and 6M S are 1.69%, 2.12%, and 2.63% respectively.

(3)Percentages are based on net assets of $48,587 as of June 30, 2022.

(4)Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion. The investment may be subject to an unused/letter of credit facility fee.

(5)Of the entire $169,752 commitment to Confluent Health, LLC, $136,650 was unfunded as of June 30, 2022.

(6)Of the entire $138,354 commitment to PDS Holdco, Inc., $4,167 was unfunded as of June 30, 2022.

The accompanying notes are an integral part of these consolidated financial statements

 


4

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

DecemberMarch 31, 20212023

(unaudited)

(in thousands, except per share data)

Description (1)   Investment Type Maturity Interest Rate (2)  Basis Point Spread Above
Index (2)		 Interest Rate Floor /
Base Rate (2)		  Par Amount  Amortized Cost  Fair Value  % of Net Assets(3) 
Non-controlled/Non-Affiliate Investments - 227.70% of Shareholder’s Equity (3)                        
Investments made in United States Companies                        
Aerospace & Defense                        
Amentum Government Services Holdings LLC First Lien - Term Loan 2/1/27  5.50% L + 4.75%  0.75%  993 ��$976  $994   2.1%
HDT Holdco, Inc. First Lien - Term Loan 6/30/27  6.50% L + 5.75%  0.75%  975   947   966   2.1%
MAG DS Corp. First Lien - Term Loan 4/1/27  6.50% L + 5.50%�� 1.00%  953   913   877   1.9%
Peraton Corp. First Lien - Term Loan 2/1/28  4.50% L + 3.75%  0.75%  993   988   995   2.1%
Setanta Aircraft Leasing DAC First Lien - Term Loan 11/2/28  2.14% L + 2.00%  0.14%  1,000   998   1,001   2.1%
Spirit Aerosystems, Inc. (fka Mid-Western Aircraft Systems, Inc and Onex Wind Finance LP.) First Lien - Term Loan 1/15/25  4.25% L + 3.75%  0.50%  994   991   996   2.1%
Vertex Aerospace Services Corp. First Lien - Term Loan 12/6/28  4.75% L + 4.00%  0.75%  1,000   995   1,000   2.1%
Total Aerospace & Defense                    6,808   6,829   14.5%
                               
Automotive                              
Autokiniton US Holdings, Inc. First Lien - Term Loan 4/6/28  5.00% L + 4.50%  0.50%  995   993   998   2.1%
First Brands Group, LLC First Lien - Term Loan 3/30/27  6.00% L + 5.00%  1.00%  997   997   1,004   2.2%
Total Automotive                    1,990   2,002   4.3%
                               
Banking, Finance, Insurance & Real Estate                              
Baldwin Risk Partners, LLC First Lien - Term Loan 10/14/27  4.00% L + 3.50%  0.50%  1,108   1,094   1,103   2.4%
DRW Holdings, LLC First Lien - Term Loan 2/24/28  3.85% L + 3.75%  0.10%  902   898   900   1.9%
FinCo I LLC First Lien - Term Loan 6/27/25  2.60% L + 2.50%  0.10%  494   493   493   1.0%
HIG Finance 2 Limited First Lien - Term Loan 11/12/27  4.00% L + 3.25%  0.75%  1,489   1,489   1,484   3.2%
Jane Street Group, LLC First Lien - Term Loan 1/26/28  2.85% L + 2.75%  0.10%  995   986   989   2.1%
KREF Holdings X LLC First Lien - Term Loan 9/1/27  3.69% L + 3.50%  0.19%  500   500   501   1.1%
LendingTree, Inc. First Lien - Term Loan 8/24/28  4.15% L + 4.00%  0.15%  1,500  $(14)  1   0.0%
Newport Parent, Inc. First Lien - Term Loan 12/10/27  7.50% L + 6.50%  1.00%  488   470   490   1.0%
Resolute Investment Managers, Inc. First Lien - Term Loan 4/30/24  5.25% L + 4.25%  1.00%  711   706   713   1.5%
Russell Investments US Institutional Holdco, Inc. First Lien - Term Loan 5/30/25  4.50% L + 3.50%  1.00%  1,000   991   1,001   2.1%
Ryan Specialty Group, LLC First Lien - Term Loan 9/1/27  3.75% L + 3.00%  0.75%  496   498   497   1.1%
Total Banking, Finance, Insurance & Real Estate                    8,111   8,172   17.4%
                               
Capital Equipment                              
American Trailer World Corp. First Lien - Term Loan 3/3/28  4.50% L + 3.75%  0.75%  995   996   993   2.1%
DMT Solutions Global Corporation First Lien - Term Loan 7/2/24  8.50% L + 7.50%  1.00%  728   730   713   1.5%
DS Parent, Inc. First Lien - Term Loan 12/10/28  6.50% L + 5.75%  0.75%  2,000   1,940   1,955   4.2%
Energy Acquisition LP First Lien - Term Loan 6/26/25  4.35% L + 4.25%  0.10%  1,169   1,153   1,162   2.5%
Total Capital Equipment                    4,819   4,823   10.3%

 


Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Non-controlled/Non-Affiliated Investments - 245.2% of Shareholder’s Equity (3)                         
Investments made in United States Companies                         
Aerospace & Defense                         
Amentum Government Services Holdings LLC First Lien - Term Loan 2/15/2029  8.76%  S + 4.00%   4.76%  860  $856  $843   1.6%
HDT Holdco, Inc. First Lien - Term Loan 7/8/2027  10.59%  L + 5.75%   4.84%  519   508   323   0.6%
MAG DS Corp. First Lien - Term Loan 4/1/2027  10.40%  S + 5.50%   4.90%  923   891   850   1.6%
Peraton Corp. First Lien - Term Loan 2/1/2028  8.59%  L + 3.75%   4.84%  962   959   951   1.8%
Propulsion (BC) Midco SARL First Lien - Term Loan 9/14/2029  8.90%  S + 4.00%   4.90%  998   994   982   1.9%
Spirit Aerosystems, Inc. (fka Mid-Western Aircraft Systems, Inc and Onex Wind Finance LP.) First Lien - Term Loan 1/15/2027  9.18%  S + 4.50%   4.68%  498   484   498   1.0%
Vertex Aerospace Services Corp. First Lien - Term Loan 12/6/2028  8.34%  L + 3.50%   4.84%  990   986   987   1.9%
Total Aerospace & Defense                      5,678   5,434   10.4%
                                 
Automotive                                
Autokiniton US Holdings, Inc. First Lien - Term Loan 4/6/2028  9.42%  S + 4.61%   4.81%  1,476   1,470   1,438   2.8%
First Brands Group, LLC First Lien - Term Loan 3/30/2027  10.25%  S + 5.43%   4.82%  2,244   2,157   2,160   4.1%
First Brands Group, LLC First Lien - Term Loan 3/30/2027  9.82%  S + 5.00%   4.82%  985   985   951   1.8%
Holley Inc. First Lien - Term Loan 11/17/2028  8.91%  L + 3.75%   5.16%  927   928   772   1.5%
Total Automotive                      5,540   5,321   10.2%

5

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

DecemberMarch 31, 20212023

(unaudited)

(in thousands, except per share data)

Description (1)   Investment Type Maturity Interest Rate (2)  Basis Point Spread Above
Index (2)		 Interest Rate Floor /
Base Rate (2)		  Par Amount  Amortized Cost  Fair Value  % of Net Assets(3) 
Chemicals, Plastics, & Rubber                        
DCG Acquisition Corp. First Lien - Term Loan 9/30/26  4.60% L + 4.50%  0.10%  241   241   241   0.4%
LSF11 A5 Holdco LLC First Lien - Term Loan 10/15/28  4.25% L + 3.75%  0.50%  500   500   500   1.1%
Sparta U.S. Holdco LLC First Lien - Term Loan 4/28/28  4.25% L + 3.50%  0.75%  500   498   501   1.1%
Total Chemicals, Plastics, & Rubber                    1,239   1,242   2.6%
                               
Construction & Building                              
Janus International Group, LLC First Lien - Term Loan 2/12/25  4.25% L + 3.25%  1.00%  895   897   895   2.0%
Michael Baker International, LLC First Lien - Term Loan 12/1/28  5.75% L + 5.00%  0.75%  1,000   990   1,010   2.1%
Total Construction & Building                    1,887   1,905   4.1%
                               
Consumer Goods: Durable                              
Mannington Mills, Inc. First Lien - Term Loan 8/6/26  3.97% L + 3.75%  0.22%  436   436   436   0.9%
Pelican Products, Inc. First Lien - Term Loan 12/29/28  4.75% L + 4.25%  0.50%  1,000   996   997   2.1%
Total Consumer Goods: Durable                    1,432   1,433   3.0%
                               
Consumer Goods: Non-Durable                              
Conair Holdings LLC First Lien - Term Loan 5/17/28  4.25% L + 3.75%  0.50%  748   745   749   1.6%
Total Consumer Goods: Non-Durable                    745   749   1.6%
                               
Containers, Packaging & Glass                              
Canister International Group Inc. First Lien - Term Loan 12/21/26  4.85% L + 4.75%  0.10%  494   492   496   1.1%
Plaze, Inc. First Lien - Term Loan 8/3/26  4.50% L + 3.75%  0.75%  668   659   663   1.4%
Sabert Corporation First Lien - Term Loan 11/26/26  5.50% L + 4.50%  1.00%  706   702   707   1.5%
Total Containers, Packaging & Glass                    1,853   1,866   4.0%
                               
Energy: Electricity                              
Astoria Energy LLC First Lien - Term Loan 12/10/27  4.50% L + 3.50%  1.00%  983   979   982   2.1%
Hamilton Projects Acquiror, LLC First Lien - Term Loan 6/17/27  5.50% L + 4.50%  1.00%  985   965   986   2.1%
Total Energy: Electricity                    1,944   1,968   4.2%
                               
Energy: Oil & Gas                              
AL NGPL Holdings, LLC First Lien - Term Loan 4/14/28  4.75% L + 3.75%  1.00%  748   753   754   1.6%
ChampionX Holding Inc. First Lien - Term Loan 6/3/27  6.00% L + 5.00%  1.00%  925   918   938   2.0%
CQP Holdco LP First Lien - Term Loan 6/5/28  4.25% L + 3.75%  0.50%  1,244   1,238   1,243   2.6%
Lucid Energy Group II Borrower, LLC First Lien - Term Loan 11/22/28  5.00% L + 4.25%  0.75%  1,000   990   990   2.2%
Navitas Midstream Midland Basin, LLC First Lien - Term Loan 12/13/24  4.75% L + 4.00%  0.75%  755   753   755   1.6%
Prairie ECI Acquiror LP First Lien - Term Loan 3/11/26  4.85% L + 4.75%  0.10%  500   490   485   1.0%
Total Energy: Oil & Gas                    5,142   5,165   11.0%
                               
Forest Products & Paper                              
Schweitzer-Mauduit International, Inc. First Lien - Term Loan 2/9/28  4.50% L + 3.75%  0.75%  995   986   994   2.1%
Total Forest Products & Paper                    986   994   2.1%
                               
Healthcare & Pharmaceuticals                              
Alvogen Pharma US, Inc. First Lien - Term Loan 12/29/23  6.25% L + 5.25%  1.00%  975   944   935   2.0%
ANI Pharmaceuticals, Inc. First Lien - Term Loan 5/24/27  6.75% L + 6.00%  0.75%  1,000   987   1,005   2.1%
ASP Navigate Acquisition Corp. First Lien - Term Loan 10/6/27  5.50% L + 4.50%  1.00%  997   997   1,002   2.1%
Aveanna Healthcare LLC First Lien - Term Loan 6/30/28  4.25% L + 3.75%  0.50%  405   403   403   0.9%
Aveanna Healthcare LLC (5) First Lien - Delayed Draw Loan 6/30/28  4.25% L + 3.75%  0.50%  94   -   -   0.0%
Bayou Intermediate II, LLC First Lien - Term Loan 5/15/28  5.25% L + 4.50%  0.75%  1,000   995   1,005   2.1%
Carestream Dental Technology Parent Limited First Lien - Term Loan 9/2/24  5.00% L + 4.50%  0.50%  1,000   990   1,000   2.1%

 


Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Banking, Finance, Insurance & Real Estate                                
AmWINS Group, Inc. First Lien - Term Loan 2/22/2028  7.66%  S + 2.85%   4.81%  499   494   497   1.0%
AssuredPartners, Inc. First Lien - Term Loan 2/12/2027  8.31%  S + 3.50%   4.81%  990   988   981   1.9%
Baldwin Risk Partners, LLC First Lien - Term Loan 10/14/2027  8.21%  L + 3.50%   4.71%  1,094   1,083   1,073   2.0%
Blackstone Mortgage Trust, Inc. First Lien - Term Loan 5/9/2029  8.31%  S + 3.50%   4.81%  847   836   779   1.5%
Citadel Securities LP First Lien - Term Loan 2/2/2028  7.42%  S + 2.61%   4.81%  1,237   1,200   1,229   2.4%
Cushman & Wakefield U.S. Borrower, LLC First Lien - Term Loan 1/31/2030  8.16%  S + 3.35%   4.81%  500   490   484   0.9%
Deerfield Dakota Holding, LLC First Lien - Term Loan 4/9/2027  8.56%  S + 3.75%   4.81%  990   986   961   1.8%
DRW Holdings, LLC First Lien - Term Loan 3/1/2028  8.59%  L + 3.75%   4.84%  531   529   521   1.0%
FinCo I LLC First Lien - Term Loan 6/27/2025  7.34%  L + 2.50%   4.84%  368   369   369   0.7%
Guggenheim Partners Investment Management Holdings, LLC First Lien - Term Loan 12/12/2029  8.15%  S + 3.25%   4.90%  114   112   113   0.2%
IMA Financial Group, Inc. First Lien - Term Loan 11/1/2028  8.34%  L + 3.50%   4.84%  494   488   484   0.9%
Jane Street Group, LLC First Lien - Term Loan 1/26/2028  7.59%  L + 2.75%   4.84%  982   975   969   1.8%
KREF Holdings X LLC First Lien - Term Loan 9/1/2027  8.31%  L + 3.50%   4.81%  494   494   451   0.9%
LendingTree, Inc. First Lien - Term Loan 9/15/2028  8.60%  L + 3.75%   4.85%  1,489   1,477   1,284   2.5%
Minotaur Acquisition, Inc. First Lien - Term Loan 3/27/2026  9.56%  S + 4.75%   4.81%  197   189   192   0.4%

6

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

DecemberMarch 31, 20212023

(unaudited)

(in thousands, except per share data)

Description (1)   Investment Type Maturity Interest Rate (2)  Basis Point Spread Above
Index (2)		 Interest Rate Floor /
Base Rate (2)		  Par Amount  Amortized Cost  Fair Value  % of Net Assets(3) 
CCRR Parent, Inc. First Lien - Term Loan 3/6/28  4.50% L + 3.75%  0.75%  992   988   993   2.1%
Confluent Health, LLC First Lien - Term Loan 11/30/28  4.10% L + 4.00%  0.10%  789   785   790   1.7%
Confluent Health, LLC (5) First Lien - Delayed Draw Loan 11/30/28  4.10% L + 4.00%  0.10%  170   -   -   0.0%
FC Compassus, LLC First Lien - Term Loan 12/31/26  5.00% L + 4.25%  0.75%  990   988   991   2.1%
Global Medical Response, Inc. First Lien - Term Loan 9/24/25  5.25% L + 4.25%  1.00%  495   487   494   1.1%
Golden State Buyer, Inc. First Lien - Term Loan 6/22/26  5.50% L + 4.75%  0.75%  995   987   992   2.1%
Help at Home, LLC First Lien - Delayed Draw Loan 10/22/27  6.00% L + 5.00%  1.00%  112   110   112   0.2%
Help at Home, LLC First Lien - Term Loan 10/20/27  6.00% L + 5.00%  1.00%  881   870   882   1.9%
Onex TSG Intermediate Corp. First Lien - Term Loan 2/28/28  5.50% L + 4.75%  0.75%  995   977   996   2.1%
PDS Holdco Inc. First Lien - Term Loan 8/18/28  5.25% L + 4.50%  0.75%  1,361   1,354   1,363   3.0%
PDS Holdco Inc. (4) First Lien - Delayed Draw Loan 8/18/28  5.25% L + 4.50%  0.75%  139   58   59   0.1%
Revspring, Inc. (fka Dantom Systems, Inc.) First Lien - Term Loan 10/3/25  4.47% L + 4.25%  0.22%  515   513   517   1.1%
SCP Eye Care Services LLC First Lien - Term Loan 3/16/28  5.25% L + 4.50%  0.75%  848   846   851   1.8%
SCP Eye Care Services LLC (5) First Lien - Delayed Draw Loan 3/16/28  4.65% L + 4.50%  0.15%  148   -   -   0.0%
TTF Holdings, LLC First Lien - Term Loan 3/31/28  5.00% L + 4.25%  0.75%  699   695   701   1.5%
U.S. Anesthesia Partners, Inc. First Lien - Term Loan 10/2/28  4.75% L + 4.25%  0.50%  998   993   996   2.1%
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) First Lien - Term Loan 12/15/27  5.75% L + 5.25%  0.50%  1,000   993   1,001   2.1%
Zotec Partners, LLC First Lien - Term Loan 2/14/24  4.75% L + 3.75%  1.00%  496   498   496   1.1%
Total Healthcare & Pharmaceuticals                    17,458   17,584   37.4%
                               
High Tech Industries                              
Casa Systems, Inc. First Lien - Term Loan 12/20/23  5.00% L + 4.00%  1.00%  1,496   1,496   1,465   3.1%
CE Intermediate I, LLC First Lien - Term Loan 11/10/28  4.50% L + 4.00%  0.50%  1,000   990   994   2.1%
ConnectWise, LLC First Lien - Term Loan 9/29/28  4.00% L + 3.50%  0.50%  1,000   995   999   2.1%
Ingram Micro Inc. First Lien - Term Loan 6/30/28  4.00% L + 3.50%  0.50%  995   985   997   2.1%
LogMeIn, Inc. First Lien - Term Loan 8/31/27  4.86% L + 4.75%  0.11%  990   970   986   2.1%
Monotype Imaging Holdings Inc. First Lien - Term Loan 10/9/26  5.75% L + 5.00%  0.75%  998   993   1,000   2.1%
Quest Software US Holdings Inc. Second Lien - Term Loan 5/18/26  8.38% L + 8.25%  0.13%  610   611   611   1.3%
Rocket Software, Inc. First Lien - Term Loan 11/28/25  4.75% L + 4.25%  0.50%  109   107   109   0.3%
Rocket Software, Inc. First Lien - Term Loan 11/28/25  4.35% L + 4.25%  0.10%  385   381   383   0.8%
Ultra Clean Holdings, Inc. First Lien - Term Loan 8/27/25  3.85% L + 3.75%  0.10%  442   440   443   1.0%
VeriFone Systems, Inc. First Lien - Term Loan 8/20/25  4.18% L + 4.00%  0.18%  1,487   1,469   1,464   3.1%
Vision Solutions, Inc. (Precisely Software Incorporated) First Lien - Term Loan 4/24/28  4.75% L + 4.00%  0.75%  1,496   1,489   1,496   3.2%
Watlow Electric Manufacturing Company First Lien - Term Loan 3/2/28  4.25% L + 3.75%  0.50%  347   346   347   0.7%
Total High Tech Industries                    11,272   11,294   24.0%
                               
Hotel, Gaming & Leisure                              
Arcis Golf LLC First Lien - Term Loan 11/20/28  4.75% L + 4.25%  0.50%  1,000   990   1,005   2.2%
Herschend Entertainment Company, LLC First Lien - Term Loan 8/28/28  4.25% L + 3.75%  0.50%  201   199   201   0.4%
Sabre GLBL Inc. First Lien - Term Loan 12/17/27  4.00% L + 3.50%  0.50%  277   277   274   0.6%
Sabre GLBL Inc. First Lien - Term Loan 12/17/27  4.00% L + 3.50%  0.50%  442   441   437   0.9%
United AirLines, Inc. First Lien - Term Loan 4/21/28  4.50% L + 3.75%  0.75%  993   988   998   2.1%
Total Hotel, Gaming & Leisure                    2,895   2,915   6.2%
                               
Media: Advertising, Printing & Publishing                              
Oceankey (U.S.) II Corp. First Lien - Term Loan 12/15/28  4.00% L + 3.50%  0.50%  1,000   990   998   2.1%
Thryv, Inc. First Lien - Term Loan 3/2/26  9.50% L + 8.50%  1.00%  387   377   394   0.9%
Total Media: Advertising, Printing & Publishing                    1,367   1,392   3.0%
                               
Media: Broadcasting & Subscription                              
LCPR Loan Financing LLC First Lien - Term Loan 10/16/28  3.86% L + 3.75%  0.11%  500   502   503   1.1%
Total Media: Broadcasting & Subscription                    502   503   1.1%

 


Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Newport Parent, Inc. First Lien - Term Loan 12/10/2027  11.34%  L + 6.50%   4.84%  821   797   810   1.5%
OFSI BSL CLO XII, Ltd. Collateralized Loan Obligation 1/20/2035  13.67%  S + 8.85%   4.82%  1,000   981   986   1.9%
Paysafe Group Holdings II Limited First Lien - Term Loan 6/28/2028  7.59%  L + 2.75%   4.84%  987   959   951   1.8%
Resolute Investment Managers, Inc. First Lien - Term Loan 4/30/2024  9.41%  L + 4.25%   5.16%  698   696   519   1.0%
Russell Investments US Institutional Holdco, Inc. First Lien - Term Loan 5/30/2025  8.41%  S + 3.60%   4.81%  1,583   1,570   1,554   3.0%
Ryan Specialty Group, LLC First Lien - Term Loan 9/1/2027  7.91%  S + 3.10%   4.81%  490   492   490   0.9%
Total Banking, Finance, Insurance & Real Estate                      16,205   15,697   30.0%
                                 
Capital Equipment                                
American Trailer World Corp. First Lien - Term Loan 3/3/2028  8.66%  S + 3.85%   4.81%  679   673   595   1.2%
DMT Solutions Global Corporation First Lien - Term Loan 7/2/2024  12.82%  L + 7.50%   5.32%  673   674   640   1.2%
DS Parent, Inc. First Lien - Term Loan 12/10/2028  10.64%  S + 5.75%   4.89%  938   913   908   1.7%
Energy Acquisition LP First Lien - Term Loan 6/26/2025  9.09%  L + 4.25%   4.84%  1,156   1,146   1,063   2.0%
Novae LLC First Lien - Term Loan 12/22/2028  9.70%  S + 5.25%   4.45%  1,982   1,929   1,720   3.3%
Total Capital Equipment                      5,335   4,926   9.4%
                                 
Chemicals, Plastics, & Rubber                                
Albaugh, LLC First Lien - Term Loan 4/6/2029  8.18%  S + 3.50%   4.68%  207   205   205   0.4%
Bakelite UK Intermediate Ltd. First Lien - Term Loan 5/29/2029  9.05%  S + 4.15%   4.90%  993   988   949   1.8%

7

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

DecemberMarch 31, 20212023

(unaudited)

(in thousands, except per share data)

Description (1)   Investment Type Maturity Interest Rate (2)  Basis Point Spread Above
Index (2)		 Interest Rate Floor /
Base Rate (2)		  Par Amount  Amortized Cost  Fair Value  % of Net Assets(3) 
Metals & Mining                        
U.S. Silica Company First Lien - Term Loan 5/1/25  5.00% L + 4.00%  1.00%  496   477   486   1.0%
Total Metals & Mining                    477   486   1.0%
                               
Retail                              
Apro, LLC First Lien - Term Loan 11/14/26  4.50% L + 3.75%  0.75%  1,340   1,331   1,342   2.9%
EG Group Limited First Lien - Delayed Draw Loan 3/31/26  4.75% L + 4.25%  0.50%  995   987   1,003   2.1%
Great Outdoors Group, LLC First Lien - Term Loan 3/6/28  4.50% L + 3.75%  0.75%  990   985   992   2.1%
Rent-A-Center, Inc. First Lien - Term Loan 2/17/28  3.75% L + 3.25%  0.50%  587   587   587   1.3%
Total Retail                    3,890   3,924   8.4%
                               
Services: Business                              
Access CIG, LLC First Lien - Term Loan 2/27/25  3.84% L + 3.75%  0.09%  363   362   362   0.8%
Ahead DB Holdings, LLC First Lien - Term Loan 10/18/27  4.50% L + 3.75%  0.75%  995   995   998   2.1%
Artera Services, LLC First Lien - Term Loan 3/6/25  4.50% L + 3.50%  1.00%  995   988   966   2.1%
Energize Holdco LLC First Lien - Term Loan 12/8/28  4.25% L + 3.75%  0.50%  877   873   874   1.9%
Indy US Bidco, LLC First Lien - Term Loan 3/6/28  3.85% L + 3.75%  0.10%  496   494   496   1.1%
Mermaid Bidco Inc. (Datasite) First Lien - Term Loan 12/22/27  4.50% L + 3.75%  0.75%  996   993   1,000   2.1%
Phoenix Services International LLC First Lien - Term Loan 3/3/25  4.75% L + 3.75%  1.00%  992   989   987   2.1%
Pitney Bowes Inc. First Lien - Term Loan 3/17/28  4.11% L + 4.00%  0.11%  993   983   994   2.1%
Presidio Holdings Inc. First Lien - Term Loan 1/22/27  3.63% L + 3.50%  0.13%  1,005   1,006   1,006   2.1%
Sitel Group First Lien - Term Loan 8/28/28  4.25% L + 3.75%  0.50%  1,496   1,489   1,498   3.2%
Skopima Consilio Parent LLC First Lien - Term Loan 5/12/28  4.50% L + 4.00%  0.50%  997   991   993   2.1%
Tempo Acquisition, LLC First Lien - Term Loan 8/31/28  3.50% L + 3.00%  0.50%  998   995   1,002   2.1%
UST Global Inc First Lien - Term Loan 11/20/28  4.25% L + 3.75%  0.50%  1,000   995   1,000   2.1%
Total Services: Business                    12,153   12,176   25.9%
                               
Services: Consumer                              
Cimpress plc First Lien - Term Loan 5/17/28  4.00% L + 3.50%  0.50%  995   986   996   2.1%
WW International, Inc. First Lien - Term Loan 4/13/28  4.00% L + 3.50%  0.50%  945   941   937   2.0%
Total Services: Consumer                    1,927   1,933   4.1%
                               
Telecommunications                              
Avaya Inc. First Lien - Term Loan 12/15/27  4.36% L + 4.25%  0.11%  850   839   854   1.8%
CCI Buyer, Inc. First Lien - Term Loan 12/17/27  4.50% L + 3.75%  0.75%  992   984   995   2.1%
ConvergeOne Holdings, Corp. First Lien - Term Loan 1/4/26  5.10% L + 5.00%  0.10%  1,489   1,464   1,461   3.1%
Digi International Inc. First Lien - Term Loan 12/22/28  5.50% L + 5.00%  0.50%  857   840   851   1.8%
Mavenir Systems, Inc. First Lien - Term Loan 8/18/28  5.25% L + 4.75%  0.50%  1,500   1,485   1,502   3.2%
Plantronics, Inc. First Lien - Term Loan 7/2/25  2.60% L + 2.50%  0.10%  1,000   988   981   2.1%
Syniverse Holdings, Inc. Second Lien - Term Loan 3/9/23  10.00% L + 9.00%  1.00%  1,250   1,252   1,243   2.7%
Syniverse Holdings, Inc. First Lien - Term Loan 3/9/23  6.00% L + 5.00%  1.00%  495   489   493   1.0%
Venga Finance S.a r.l. First Lien - Term Loan 12/4/28  5.50% L + 4.75%  0.75%  1,000   970   983   2.1%
Zayo Group Holdings, Inc. First Lien - Term Loan 3/9/27  3.10% L + 3.00%  0.10%  1,000   995   988   2.1%
Total Telecommunications                    10,306   10,351   22.0%
                               
Transportation: Cargo                              
Carriage Purchaser, Inc. First Lien - Term Loan 10/31/28  5.00% L + 4.25%  0.75%  997   993   999   2.1%
Daseke Companies, Inc. First Lien - Term Loan 3/9/28  4.75% L + 4.00%  0.75%  992   988   994   2.1%
Echo Global Logistics, Inc. First Lien - Term Loan 11/23/28  4.25% L + 3.75%  0.50%  1,000   998   998   2.1%
Kenan Advantage Group, Inc.,The Second Lien - Term Loan 9/1/27  8.00% L + 7.25%  0.75%  1,000   981   999   2.1%
WWEX UNI TopCo Holdings, LLC First Lien - Term Loan 7/26/28  5.00% L + 4.25%  0.75%  1,210   1,198   1,214   2.7%
Total Transportation: Cargo                    5,158   5,204   11.1%
                               
Transportation: Consumer                              
First Student Bidco Inc. First Lien - Term Loan 7/21/28  3.50% L + 3.00%  0.50%  365   363   364   0.8%
First Student Bidco Inc. First Lien - Term Loan 7/21/28  3.50% L + 3.00%  0.50%  135   134   134   0.3%
Total Transportation: Consumer                    497   498   1.1%

 


Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
DCG Acquisition Corp. First Lien - Term Loan 9/30/2026  9.41%  S + 4.60%   4.81%  1,225   1,226   1,191   2.3%
H.B. Fuller Company First Lien - Term Loan 2/15/2030  7.31%  S + 2.50%   4.81%  119   119   120   0.2%
Sparta U.S. Holdco LLC First Lien - Term Loan 8/2/2028  7.92%  L + 3.25%   4.67%  494   492   490   0.9%
Total Chemicals, Plastics, & Rubber                      3,030   2,955   5.6%
                                 
Construction & Building                                
Crown Subsea Communications Holding, Inc. First Lien - Term Loan 4/27/2027  9.92%  S + 5.25%   4.67%  744   730   735   1.4%
Janus International Group, LLC First Lien - Term Loan 2/12/2025  8.09%  L + 3.25%   4.84%  821   822   812   1.6%
Michael Baker International, LLC First Lien - Term Loan 12/1/2028  9.84%  L + 5.00%   4.84%  988   979   969   1.8%
Smyrna Ready Mix Concrete, LLC First Lien - Term Loan 4/2/2029  9.16%  S + 4.35%   4.81%  1,241   1,208   1,238   2.4%
Total Construction & Building                      3,739   3,754   7.2%
                                 
Consumer Goods: Durable                                
Hercules Achievement, Inc. (Varsity Brands Holding Co., Inc.) First Lien - Term Loan 12/14/2026  9.76%  S + 5.00%   4.76%  998   988   933   1.8%
Hunter Douglas Holding B.V. First Lien - Term Loan 2/26/2029  8.37%  S + 3.50%   4.87%  993   988   897   1.7%
LHS Borrower, LLC First Lien - Term Loan 2/16/2029  9.66%  S + 4.85%   4.81%  659   653   538   1.0%
Mannington Mills, Inc. First Lien - Term Loan 8/6/2026  8.91%  L + 3.75%   5.16%  430   430   352   0.7%
Pelican Products, Inc. First Lien - Term Loan 12/29/2028  9.41%  L + 4.25%   5.16%  988   985   881   1.7%
Total Consumer Goods: Durable                      4,044   3,601   6.9%
                                 

8

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

DecemberMarch 31, 20212023

(unaudited)

(in thousands, except per share data)

 

Description (1)   Investment Type Maturity Interest Rate (2)  Basis Point Spread Above
Index (2)		 Interest Rate Floor /
Base Rate (2)		  Par Amount  Amortized Cost  Fair Value  % of Net Assets(3) 
Utilities: Electric                        
PG&E Corporation First Lien - Term Loan 6/23/25  3.50% L + 3.00%  0.50%  493   490   488   1.0%
Total Utilities: Electric                    490   488   1.0%
                               
Total Investments made in United States Companies                    105,348   105,896   225.4%
                               
Investments made in Luxembourg Companies                              
Containers, Packaging & Glass                              
Mar Bidco S.a r.l. First Lien - Term Loan 6/28/28  4.75% L + 4.25%  0.50%  106   105   106   0.2%
Total Containers, Packaging & Glass                    105   106   0.2%
                               
Telecommunications                              
Zacapa S.A R.L. First Lien - Term Loan 7/2/25  4.72% L + 4.50%  0.22%  992   990   995   2.1%
Total Telecommunications                    990   995   2.1%
                               
Total Investments made in Luxembourg Companies                    1,095   1,101   2.3%
                               
Total Non-controlled/Non-Affiliate Investments                   $106,443  $106,997   227.7%
Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Consumer Goods: Non-Durable                                
Conair Holdings LLC First Lien - Term Loan 5/17/2028  8.91%  L + 3.75%   5.16%  1,135   1,130   1,044   2.0%
Total Consumer Goods: Non-Durable                      1,130   1,044   2.0%
                                 
Containers, Packaging & Glass                                
Canister International Group Inc. First Lien - Term Loan 12/21/2026  9.56%  L + 4.75%   4.81%  487   486   488   0.9%
Pactiv Evergreen Inc. First Lien - Term Loan 9/22/2028  8.09%  L + 3.25%   4.84%  987   963   976   1.9%
Plaze, Inc. First Lien - Term Loan 8/3/2026  8.59%  L + 3.75%   4.84%  659   652   608   1.1%
Sabert Corporation First Lien - Term Loan 12/10/2026  9.38%  L + 4.50%   4.88%  987   985   985   1.9%
Total Containers, Packaging & Glass                      3,086   3,057   5.8%
                                 
Energy: Electricity                                
Astoria Energy LLC First Lien - Term Loan 12/10/2027  8.35%  L + 3.50%   4.85%  958   955   952   1.8%
Hamilton Projects Acquiror, LLC First Lien - Term Loan 6/17/2027  9.66%  L + 4.50%   5.16%  877   859   872   1.7%
Total Energy: Electricity                      1,814   1,824   3.5%
                                 
Energy: Oil & Gas                                
AL NGPL Holdings, LLC First Lien - Term Loan 4/14/2028  8.56%  L + 3.75%   4.81%  670   674   664   1.3%
CQP Holdco LP First Lien - Term Loan 6/5/2028  8.66%  L + 3.50%   5.16%  1,228   1,224   1,222   2.3%
Delek US Holdings, Inc. First Lien - Term Loan 11/19/2029  8.41%  S + 3.60%   4.81%  629   605   615   1.2%
Prairie ECI Acquiror LP First Lien - Term Loan 3/11/2026  9.59%  L + 4.75%   4.84%  500   493   490   0.9%
Traverse Midstream Partners LLC First Lien - Term Loan 2/16/2028  8.73%  S + 3.85%   4.88%  412   409   407   0.8%
Total Energy: Oil & Gas                      3,405   3,398   6.5%
                                 
Forest Products & Paper                                
Schweitzer-Mauduit International, Inc. First Lien - Term Loan 4/20/2028  8.63%  L + 3.75%   4.88%  983   975   951   1.8%
Total Forest Products & Paper                      975   951   1.8%
                                 
Healthcare & Pharmaceuticals                                
Agiliti Health, Inc. First Lien - Term Loan 1/4/2026  7.44%  L + 2.75%   4.69%  715   714   714   1.4%
Alvogen Pharma US, Inc. First Lien - Term Loan 12/31/2023  10.15%  S + 5.25%   4.90%  913   913   861   1.6%
Amneal Pharmaceuticals First Lien - Term Loan 5/4/2025  8.38%  L + 3.50%   4.88%  995   921   948   1.8%
ANI Pharmaceuticals, Inc. First Lien - Term Loan 11/19/2027  10.84%  L + 6.00%   4.84%  988   977   968   1.8%
ASP Navigate Acquisition Corp. First Lien - Term Loan 10/6/2027  9.36%  L + 4.50%   4.86%  985   985   966   1.8%
Athletico Management, LLC First Lien - Term Loan 2/15/2029  9.30%  S + 4.40%   4.90%  248   241   183   0.3%

 

9

 

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

March 31, 2023

(unaudited)

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Aveanna Healthcare LLC First Lien - Term Loan 7/17/2028  8.70%  L + 3.75%   4.95%  428   427   365   0.7%
Bayou Intermediate II, LLC First Lien - Term Loan 8/2/2028  9.30%  L + 4.50%   4.80%  988   984   948   1.8%
Carestream Dental Technology Parent Limited First Lien - Term Loan 9/1/2024  9.34%  L + 4.50%   4.84%  888   877   825   1.6%
CCRR Parent, Inc. First Lien - Term Loan 3/6/2028  8.60%  L + 3.75%   4.85%  980   977   949   1.8%
Confluent Health, LLC First Lien - Delayed Draw Loan 11/30/2028  8.63%  L + 4.00%   4.63%  170   170   139   0.3%
Confluent Health, LLC First Lien - Term Loan 11/30/2028  8.84%  L + 4.00%   4.84%  779   776   637   1.2%
FC Compassus, LLC First Lien - Term Loan 12/31/2026  9.09%  L + 4.25%   4.84%  1,224   1,223   1,158   2.2%
Global Medical Response, Inc. First Lien - Term Loan 10/2/2025  9.24%  L + 4.25%   4.99%  489   483   346   0.7%
Golden State Buyer, Inc. First Lien - Term Loan 6/21/2026  9.66%  S + 4.85%   4.81%  946   940   920   1.8%
Help at Home, LLC First Lien - Term Loan 10/29/2027  9.81%  S + 5.00%   4.81%  1,003   989   978   1.9%
Help at Home, LLC First Lien - Delayed Draw Loan 10/29/2027  9.81%  S + 5.00%   4.81%  127   125   124   0.2%
Onex TSG Intermediate Corp. First Lien - Term Loan 2/28/2028  9.69%  S + 5.01%   4.68%  983   968   875   1.7%
PDS Holdco Inc. First Lien - Term Loan 8/18/2028  9.34%  L + 4.50%   4.84%  1,344   1,339   1,245   2.4%
PDS Holdco Inc. First Lien - Delayed Draw Loan 8/18/2028  9.34%  L + 4.50%   4.84%  137   137   127   0.2%
Revspring, Inc. (fka Dantom Systems, Inc.) First Lien - Term Loan 10/11/2025  8.90%  S + 4.00%   4.90%  1,004   998   973   1.9%
Sotera Health Holdings, LLC First Lien - Term Loan 12/11/2026  8.82%  S + 3.75%   5.07%  220   214   217   0.4%
TTF Holdings, LLC First Lien - Term Loan 3/31/2028  8.88%  L + 4.00%   4.88%  635   631   634   1.2%
U.S. Anesthesia Partners, Inc. First Lien - Term Loan 10/2/2028  8.91%  L + 4.25%   4.66%  1,097   1,092   1,060   2.0%
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) First Lien - Term Loan 12/15/2027  10.16%  S + 5.35%   4.81%  988   982   930   1.8%
Zelis Cost Management Buyer, Inc. First Lien - Term Loan 9/30/2026  8.34%  L + 3.50%   4.84%  418   416   417   0.8%
Zotec Partners, LLC First Lien - Term Loan 2/14/2024  8.91%  L + 3.75%   5.16%  998   972   927   1.8%
Total Healthcare & Pharmaceuticals                      20,471   19,434   37.1%

10

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

March 31, 2023

(unaudited)

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
High Tech Industries                                
Casa Systems, Inc. First Lien - Term Loan 12/20/2023  8.84%  L + 4.00%   4.84%  1,474   1,474   1,233   2.3%
CE Intermediate I, LLC First Lien - Term Loan 11/10/2028  8.86%  L + 4.00%   4.86%  990   982   955   1.8%
Ingram Micro Inc. First Lien - Term Loan 6/30/2028  8.66%  L + 3.50%   5.16%  983   975   978   1.9%
LogMeIn, Inc. First Lien - Term Loan 8/31/2027  9.59%  L + 4.75%   4.84%  978   962   563   1.1%
Monotype Imaging Holdings Inc. First Lien - Term Loan 10/9/2026  9.90%  S + 5.00%   4.90%  722   719   714   1.4%
Quest Software US Holdings Inc. First Lien - Term Loan 2/1/2029  9.08%  S + 4.40%   4.68%  1,493   1,480   1,226   2.3%
VeriFone Systems, Inc. First Lien - Term Loan 8/20/2025  8.96%  L + 4.00%   4.96%  1,381   1,369   1,197   2.3%
Vision Solutions, Inc. (Precisely Software Incorporated) First Lien - Term Loan 4/24/2028  8.82%  L + 4.00%   4.82%  984   982   878   1.7%
Watlow Electric Manufacturing Company First Lien - Term Loan 3/2/2028  8.43%  S + 3.75%   4.68%  343   342   337   0.6%
Total High Tech Industries                      9,285   8,081   15.4%
                                 
Hotel, Gaming & Leisure                                
Arcis Golf LLC First Lien - Term Loan 11/24/2028  9.09%  L + 4.25%   4.84%  990   982   988   1.9%
ClubCorp Holdings, Inc. First Lien - Term Loan 9/18/2024  7.48%  L + 2.75%   4.73%  496   485   475   0.9%
Fertitta Entertainment, LLC First Lien - Term Loan 1/27/2029  8.81%  S + 4.00%   4.81%  990   989   977   1.9%
Herschend Entertainment Company, LLC First Lien - Term Loan 8/28/2028  8.63%  L + 3.75%   4.88%  198   197   198   0.4%
Kingpin Intermediate Holdings LLC First Lien - Term Loan 2/8/2028  8.31%  S + 3.50%   4.81%  178   177   178   0.3%
Sabre GLBL Inc. First Lien - Term Loan 12/17/2027  8.34%  L + 3.50%   4.84%  436   436   371   0.7%
Sabre GLBL Inc. First Lien - Term Loan 12/17/2027  8.34%  L + 3.50%   4.84%  274   273   233   0.4%
Sabre GLBL Inc. First Lien - Term Loan 6/30/2028  9.91%  S + 5.10%   4.81%  356   340   307   0.6%
Scientific Games International, Inc. First Lien - Term Loan 4/16/2029  7.96%  S + 3.10%   4.86%  993   986   987   1.9%
Total Hotel, Gaming & Leisure                      4,865   4,714   9.0%

11

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

March 31, 2023

(unaudited)

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Media: Advertising, Printing & Publishing                                
Oceankey (U.S.) II Corp. First Lien - Term Loan 12/15/2028  8.41%  S + 3.60%   4.81%  990   982   942   1.8%
Thryv, Inc. First Lien - Term Loan 3/1/2026  13.34%  L + 8.50%   4.84%  965   962   961   1.8%
Total Media: Advertising, Printing & Publishing                      1,944   1,903   3.6%
                                 
Media: Broadcasting & Subscription                                
LCPR Loan Financing LLC First Lien - Term Loan 10/16/2028  8.43%  L + 3.75%   4.68%  500   501   494   0.9%
Sinclair Television Group, Inc. First Lien - Term Loan 4/21/2029  8.66%  S + 3.85%   4.81%  744   725   679   1.3%
Total Media: Broadcasting & Subscription                      1,226   1,173   2.2%
                                 
Retail                                
Apro, LLC First Lien - Term Loan 11/14/2026  8.76%  L + 3.75%   5.01%  1,323   1,317   1,301   2.5%
EG Group Limited First Lien - Delayed Draw Loan 3/31/2026  9.09%  L + 4.25%   4.84%  987   981   947   1.8%
Great Outdoors Group, LLC First Lien - Term Loan 3/6/2028  8.59%  L + 3.75%   4.84%  978   974   967   1.8%
IRB Holding Corp. First Lien - Term Loan 12/15/2027  7.91%  S + 3.10%   4.81%  296   293   292   0.6%
Rent-A-Center, Inc. First Lien - Term Loan 2/17/2028  8.13%  L + 3.25%   4.88%  551   551   547   1.0%
Total Retail                      4,116   4,054   7.7%
                                 
Services: Business                                
Ahead DB Holdings, LLC First Lien - Term Loan 10/18/2027  8.91%  L + 3.75%   5.16%  983   983   967   1.8%
Artera Services, LLC First Lien - Term Loan 3/6/2025  8.66%  L + 3.50%   5.16%  983   979   837   1.6%
Congruex Group LLC First Lien - Term Loan 5/3/2029  10.43%  S + 5.75%   4.68%  993   970   963   1.8%
DTI Holdco, Inc. First Lien - Term Loan 4/26/2029  9.43%  S + 4.75%   4.68%  1,125   1,105   1,048   2.0%
Energize Holdco LLC First Lien - Term Loan 12/8/2028  8.59%  L + 3.75%   4.84%  868   865   845   1.6%
Indy US Bidco, LLC First Lien - Term Loan 3/6/2028  8.59%  L + 3.75%   4.84%  490   488   416   0.8%

12

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

March 31, 2023

(unaudited)

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Mermaid Bidco Inc. (Datasite) First Lien - Term Loan 12/22/2027  8.30%  L + 3.50%   4.80%  984   981   959   1.8%
Misys Limited First Lien - Term Loan 6/13/2024  8.33%  L + 3.50%   4.83%  986   987   926   1.8%
Phoenix Services International LLC First Lien - Term Loan 5/29/2023  16.81%  S + 12.00%   4.81%  346   346   333   0.6%
Phoenix Services International LLC (4) First Lien - Term Loan 3/1/2025  -   -   -   1,134   1,130   119   0.2%
Phoenix Services International LLC First Lien - Term Loan 5/29/2023  16.81%  S + 12.00%   4.81%  154   154   149   0.3%
Pitney Bowes Inc. First Lien - Term Loan 3/17/2028  8.92%  S + 4.11%   4.81%  980   973   942   1.8%
Presidio Holdings Inc. First Lien - Term Loan 1/22/2027  8.18%  S + 3.50%   4.68%  992   992   988   1.9%
Sitel Group First Lien - Term Loan 8/28/2028  8.60%  L + 3.75%   4.85%  1,478   1,472   1,462   2.8%
Skopima Consilio Parent LLC First Lien - Term Loan 5/12/2028  8.84%  L + 4.00%   4.84%  985   981   923   1.8%
Tempo Acquisition, LLC First Lien - Term Loan 8/31/2028  7.81%  S + 3.00%   4.81%  985   983   985   1.9%
UST Global Inc First Lien - Term Loan 11/20/2028  8.67%  S + 3.86%   4.81%  988   984   983   1.9%
VM Consolidated, Inc. First Lien - Term Loan 3/24/2028  8.09%  L + 3.25%   4.84%  2   2   2   0.0%
Total Services: Business                      15,375   13,847   26.4%
                                 
Services: Consumer                                
WW International, Inc. First Lien - Term Loan 4/13/2028  8.35%  L + 3.50%   4.85%  945   942   552   1.1%
Total Services: Consumer                      942   552   1.1%
                                 
Telecommunications                                
CCI Buyer, Inc. First Lien - Term Loan 12/17/2027  8.90%  S + 4.00%   4.90%  980   973   969   1.8%
Ciena Corporation First Lien - Term Loan 1/18/2030  7.19%  S + 2.50%   4.69%  1,000   996   1,001   1.9%
ConvergeOne Holdings, Corp. First Lien - Term Loan 1/4/2026  9.84%  L + 5.00%   4.84%  1,469   1,453   897   1.7%
Digi International Inc. First Lien - Term Loan 11/1/2028  9.84%  L + 5.00%   4.84%  750   738   748   1.4%
Guardian US Holdco LLC First Lien - Term Loan 1/31/2030  8.68%  S + 4.00%   4.68%  297   291   294   0.6%
Mavenir Systems, Inc. First Lien - Term Loan 8/18/2028  9.65%  L + 4.75%   4.90%  1,307   1,297   920   1.8%
Maxar Technologies Inc. First Lien - Term Loan 6/14/2029  9.16%  S + 4.35%   4.81%  993   952   993   1.9%
Patagonia Holdco LLC First Lien - Term Loan 8/1/2029  10.47%  S + 5.75%   4.72%  498   412   415   0.8%
Syniverse Holdings, LLC First Lien - Term Loan 5/13/2027  11.90%  S + 7.00%   4.90%  995   961   886   1.7%
Zayo Group Holdings, Inc. First Lien - Term Loan 3/9/2027  7.84%  L + 3.00%   4.84%  1,000   997   818   1.6%
Total Telecommunications                      9,070   7,941   15.2%

13

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

March 31, 2023

(unaudited)

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Transportation: Cargo                                
Carriage Purchaser, Inc. First Lien - Term Loan 9/30/2028  9.09%  L + 4.25%   4.84%  985   982   947   1.8%
Daseke Companies, Inc. First Lien - Term Loan 3/9/2028  8.85%  L + 4.00%   4.85%  980   977   976   1.9%
Echo Global Logistics, Inc. First Lien - Term Loan 11/23/2028  8.34%  L + 3.50%   4.84%  990   988   963   1.8%
Kenan Advantage Group, Inc.,The Second Lien - Term Loan 9/1/2027  12.09%  L + 7.25%   4.84%  1,000   985   935   1.8%
Total Transportation: Cargo                      3,932   3,821   7.3%
                                 
Transportation: Consumer                                
Avolon TLB Borrower 1 (US) LLC First Lien - Term Loan 12/1/2027  7.01%  L + 2.25%   4.76%  611   594   612   1.2%
First Student Bidco Inc. First Lien - Term Loan 7/21/2028  8.14%  L + 3.00%   5.14%  361   359   346   0.6%
First Student Bidco Inc. First Lien - Term Loan 7/21/2028  8.14%  L + 3.00%   5.14%  135   134   129   0.2%
Lakeland Tours, LLC Second Lien - Term Loan 9/25/2025  10.83%  L + 6.00%   4.83%  747   651   664   1.3%
Safe Fleet Holdings LLC First Lien - Term Loan 2/16/2029  8.61%  S + 3.85%   4.76%  636   634   625   1.2%
United AirLines, Inc. First Lien - Term Loan 4/21/2028  8.57%  L + 3.75%   4.82%  980   976   975   1.9%
Total Transportation: Consumer                      3,348   3,351   6.4%
                                 
Utilities: Electric                                
PG&E Corporation First Lien - Term Loan 6/23/2025  7.88%  L + 3.00%   4.88%  486   485   486   0.9%
Total Utilities: Electric                      485   486   0.9%
                                 
Total Investments made in United States Companies                      129,040   121,319   231.6%
                                 
Investments made in Ireland Companies                                
Aerospace & Defense                                
Setanta Aircraft Leasing DAC First Lien - Term Loan 11/2/2028  7.16%  L + 2.00%   5.16%  1,500   1,496   1,502   2.9%
Total Aerospace & Defense                      1,496   1,502   2.9%
                                 
Services: Consumer                                
Cimpress plc First Lien - Term Loan 5/17/2028  8.34%  L + 3.50%   4.84%  983   975   944   1.8%
Total Services: Consumer                      975   944   1.8%
                                 
Total Investments made in Ireland Companies                      2,471   2,446   4.7%
Investments made in Luxembourg Companies                                
Containers, Packaging & Glass                                
Mar Bidco S.a r.l. First Lien - Term Loan 7/7/2028  9.46%  L + 4.30%   5.16%  14   14   13   0.0%
Total Containers, Packaging & Glass                      14   13   0.0%

14

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

March 31, 2023

(unaudited)

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Telecommunications                                
Venga Finance S.a r.l. First Lien - Term Loan 6/28/2029  9.70%  L + 4.75%   4.95%  995   968   953   1.8%
Zacapa S.a r.l. First Lien - Term Loan 3/22/2029  8.90%  S + 4.00%   4.90%  1,477   1,474   1,449   2.8%
Total Telecommunications                      2,442   2,402   4.6%
                                 
Total Investments made in Luxembourg Companies                      2,456   2,415   4.6%
                                 
Investments made in United Kingdom Companies                                
Banking, Finance, Insurance & Real Estate                                
HIG Finance 2 Limited First Lien - Term Loan 11/12/2027  8.13%  L + 3.25%   4.88%  1,470   1,470   1,457   2.8%
Total Banking, Finance, Insurance & Real Estate                      1,470   1,457   2.8%
                                 
Chemicals, Plastics, & Rubber                                
Ineos US Finance LLC First Lien - Term Loan 2/19/2030  8.41%  S + 3.60%   4.81%  205   203   204   0.4%
Ineos Quattro Holdings UK Limited First Lien - Term Loan 3/1/2030  8.66%  S + 3.85%   4.81%  119   118   119   0.2%
Total Chemicals, Plastics, & Rubber                      321   323   0.6%
                                 
Media: Broadcasting & Subscription                                
Virgin Media Bristol LLC First Lien - Term Loan 3/31/2031  8.11%  S + 3.35%   4.76%  500   495   495   0.9%
Total Media: Broadcasting & Subscription                      495   495   0.9%
                                 
Total Investments made in United Kingdom Companies                      2,286   2,275   4.3%
                                 
Total Non-controlled/Non-Affiliated Investments                     $136,253  $128,455   245.2%

(1)All investments are non-controlled/non-affiliated investments as defined by the Investment Company Act of 1940 (the “1940 Act”). The provisions of the 1940 Act classify investments based on the level of control that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be “non-controlled” when the Company owns 25% or less of the portfolio company’s voting securities and “controlled” when the Company owns more than 25% of the portfolio company’s voting securities. The provisions of the 1940 Act also classify investments further based on the level of ownership that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as “non-affiliated” when the Company owns less than 5% of a portfolio company’s voting securities and “affiliated” when the Company owns 5% or more of a portfolio company’s voting securities.

(2)The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”) which reset monthly or quarterly. For each such investment, the Fund has provided the spread over LIBOR and the current contractual interest rate in effect at DecemberMarch 31, 2021.2023. As of DecemberMarch 31, 2021,2023, rates for 1M L, 2M L, 3M L, and 6M L, and 12M L are 0.10%4.86%, 0.15%5.19%, 0.21%5.31%, and 0.34%5.31% respectively. Due to uncertainties with LIBOR, investments are starting to transition from LIBOR to Secured Overnight Financing Rate (“SOFR” or “S”). As of March 31, 2023, rates for 1M S, 3M S, 6M S, and 12M S are 4.80%, 4.91%, 4.90, and 4.73% respectively.

(3)Percentages are based on net assets of $46,993$52,394 thousand as of DecemberMarch 31, 2021.2023.

(4)OfInvestment or a portion of the entire $138,889 commitment to PDS Holdco Inc., $80,556investment was unfundedon non-accrual status as of DecemberMarch 31, 2021.2023.

(5)Position or portion thereof is an unfunded loan commitment, and no interest is being earned on the unfunded portion. The investment may be subject to an unused/letter of credit facility fee.

 

The accompanying notes are an integral part of these consolidated financial statements


15

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Non-controlled/Non-Affiliated Investments -253.30% of Shareholder’s Equity (3)                         
Investments made in United States Companies                         
Aerospace & Defense                         
Amentum Government Services Holdings LLC First Lien - Term Loan 2/15/2029  8.76%  S + 4.00%   

4.76

%  862   858   842   1.7%
HDT Holdco, Inc. First Lien - Term Loan 7/8/2027  10.48%  L + 5.75%   4.73%  527   514   450   0.9%
MAG DS Corp. First Lien - Term Loan 4/1/2027  10.23%  L + 5.50%   4.73%  926   892   852   1.7%
Peraton Corp. First Lien - Term Loan 2/1/2028  8.13%  L + 3.75%   4.38%  965   961   944   1.9%
Propulsion (BC) Midco SARL First Lien - Term Loan 9/14/2029  8.58%  S + 4.00%   4.58%  1,000   996   975   1.9%
Spirit Aerosystems, Inc. (fka Mid-Western Aircraft Systems, Inc and Onex Wind Finance LP.) First Lien - Term Loan 1/15/2027  8.82%  S + 4.50%   4.32%  499   484   494   0.9%
Vertex Aerospace Services Corp. First Lien - Term Loan 12/6/2028  7.88%  L + 3.50%   4.38%  993   988   977   1.9%
Total Aerospace & Defense                      5,693   5,534   10.9%
                                 
Automotive                                
Autokiniton US Holdings, Inc. First Lien - Term Loan 4/6/2028  8.79%  L + 4.50%   4.29%  1,480   1,472   1,437   2.8%
First Brands Group, LLC First Lien - Term Loan 3/30/2027  8.37%  S + 5.00%   3.37%  987   987   940   1.9%
Gates Global LLC First Lien - Term Loan 11/16/2029  7.82%  S + 3.50%   4.32%  499   484   496   1.0%
Holley Inc. First Lien - Term Loan 11/17/2028  8.42%  L + 3.75%   4.67%  930   931   813   1.6%
Total Automotive                      3,874   3,686   7.3%

16

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Banking, Finance, Insurance & Real Estate                                
AssuredPartners, Inc. First Lien - Term Loan 2/12/2027  7.82%  S + 3.50%   4.32%  993   990   966   1.9%
Asurion, LLC First Lien - Term Loan 8/21/2028  8.68%  S + 4.10%   4.58%  649   642   581   1.1%
Baldwin Risk Partners, LLC First Lien - Term Loan 10/14/2027  7.79%  L + 3.50%   4.29%  1,096   1,085   1,073   2.1%
Blackstone Mortgage Trust, Inc. First Lien - Term Loan 5/9/2029  7.82%  S + 3.50%   4.32%  849   837   834   1.7%
Citadel Securities LP First Lien - Term Loan 2/2/2028  6.93%  S + 2.61%   4.32%  1,241   1,201   1,220   2.4%
Deerfield Dakota Holding, LLC First Lien - Term Loan 4/9/2027  8.07%  S + 3.75%   4.32%  992   988   929   1.8%
DRW Holdings, LLC First Lien - Term Loan 2/24/2028  8.13%  L + 3.75%   4.38%  537   535   524   1.0%
FinCo I LLC First Lien - Term Loan 6/27/2025  6.88%  L + 2.50%   4.38%  368   369   368   0.7%
Guggenheim Partners Investment Management Holdings, LLC First Lien - Term Loan 12/12/2029  7.83%  S + 3.25%   4.58%  114   112   113   0.2%
IMA Financial Group, Inc. First Lien - Term Loan 11/1/2028  7.88%  L + 3.50%   4.38%  495   489   480   1.0%
Jane Street Group, LLC First Lien - Term Loan 1/26/2028  7.13%  L + 2.75%   4.38%  985   977   958   1.9%
KREF Holdings X LLC First Lien - Term Loan 9/1/2027  7.81%  L + 3.50%   4.31%  495   495   484   1.0%
LendingTree, Inc. First Lien - Term Loan 9/15/2028  8.14%  L + 3.75%   4.39%  1,493   1,480   1,338   2.7%
Minotaur Acquisition, Inc. First Lien - Term Loan 3/27/2026  9.17%  S + 4.75%   4.42%  197   189   189   0.5%
Newport Parent, Inc. First Lien - Term Loan 12/10/2027  11.23%  L + 6.50%   4.73%  827   801   820   1.7%
Paysafe Group Holdings II Limited First Lien - Term Loan 6/28/2028  7.13%  L + 2.75%   4.38%  990   960   947   1.9%
Resolute Investment Managers, Inc. First Lien - Term Loan 4/30/2024  8.98%  L + 4.25%   4.73%  701   698   571   1.1%
Russell Investments US Institutional Holdco, Inc. First Lien - Term Loan 5/30/2025  7.88%  L + 3.50%   4.38%  1,583   1,568   1,526   3.0%
Ryan Specialty Group, LLC First Lien - Term Loan 9/1/2027  7.42%  S + 3.00%   4.42%  491   493   489   1.0%
Total Banking, Finance, Insurance & Real Estate                      14,909   14,410   28.7%
                                 
Capital Equipment                                
American Trailer World Corp. First Lien - Term Loan 3/3/2028  8.17%  S + 3.85%   4.32%  679   673   590   1.2%
DMT Solutions Global Corporation First Lien - Term Loan 7/2/2024  11.24%  L + 7.50%   3.74%  684   685   648   1.4%
DS Parent, Inc. First Lien - Term Loan 12/10/2028  9.92%  L + 5.75%   4.17%  950   924   908   1.8%
Energy Acquisition LP First Lien - Term Loan 6/26/2025  8.63%  L + 4.25%   4.38%  1,159   1,147   1,044   2.1%
Novae LLC First Lien - Term Loan 12/22/2028  9.95%  S + 5.25%   4.70%  1,987   1,931   1,640   3.3%
Total Capital Equipment                      5,360   4,830   9.8%

17

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Chemicals, Plastics, & Rubber                                
Albaugh, LLC First Lien - Term Loan 4/6/2029  7.59%  S + 3.50%   4.09%  207   205   205   0.4%
Bakelite UK Intermediate Ltd. First Lien - Term Loan 5/29/2029  8.73%  S + 4.15%   4.58%  995   990   931   1.8%
DCG Acquisition Corp. First Lien - Term Loan 9/30/2026  8.92%  S + 4.60%   4.32%  1,228   1,230   1,161   2.3%
Sparta U.S. Holdco LLC First Lien - Term Loan 8/2/2028  7.39%  L + 3.25%   4.14%  495   493   483   1.0%
Total Chemicals, Plastics, & Rubber                      2,918   2,780   5.5%
                                 
Construction & Building                                
Janus International Group, LLC First Lien - Term Loan 2/12/2025  7.98%  L + 3.25%   4.73%  885   887   860   1.7%
Michael Baker International, LLC First Lien - Term Loan 12/1/2028  9.38%  L + 5.00%   4.38%  990   981   960   1.9%
Smyrna Ready Mix Concrete, LLC First Lien - Term Loan 4/2/2029  8.67%  S + 4.35%   4.32%  1,244   1,209   1,222   2.4%
Total Construction & Building                      3,077   3,042   6.0%
                                 
Consumer Goods: Durable                                
LHS Borrower, LLC First Lien - Term Loan 2/16/2029  9.17%  S + 4.85%   4.32%  660   654   542   1.1%
Hunter Douglas Holding B.V. First Lien - Term Loan 2/26/2029  7.86%  S + 3.50%   4.36%  995   991   880   1.7%
Mannington Mills, Inc. First Lien - Term Loan 8/6/2026  8.48%  L + 3.75%   4.73%  431   431   351   0.7%
Pelican Products, Inc. First Lien - Term Loan 12/29/2028  8.42%  L + 4.25%   4.17%  990   987   896   1.8%
Total Consumer Goods: Durable                      3,063   2,669   5.3%
                                 
Consumer Goods: Non-Durable                                
Conair Holdings LLC First Lien - Term Loan 5/17/2028  8.48%  L + 3.75%   4.73%  1,138   1,133   963   1.9%
Men’s Wearhouse, LLC, The First Lien - Term Loan 12/1/2025  12.40%  L + 8.00%   4.40%  793   789   793   1.6%
Total Consumer Goods: Non-Durable                      1,922   1,756   3.5%

18

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Containers, Packaging & Glass                                
Canister International Group Inc. First Lien - Term Loan 12/21/2026  9.13%  L + 4.75%   4.38%  489   487   486   1.0%
Clydesdale Acquisition Holdings, Inc. First Lien - Term Loan 4/13/2029  8.60%  S + 4.18%   4.42%  1,493   1,458   1,425   2.8%
Pactiv Evergreen Inc. First Lien - Term Loan 9/22/2028  7.63%  L + 3.25%   4.38%  990   964   978   1.9%
Plaze, Inc. First Lien - Term Loan 8/3/2026  8.13%  L + 3.75%   4.38%  661   654   593   1.2%
Sabert Corporation First Lien - Term Loan 12/10/2026  8.94%  L + 4.50%   4.44%  1,038   1,037   1,033   2.0%
Total Containers, Packaging & Glass                      4,600   4,515   8.9%
                                 
Energy: Electricity                                
Astoria Energy LLC First Lien - Term Loan 12/10/2027  7.89%  L + 3.50%   4.39%  960   956   949   1.8%
Hamilton Projects Acquiror, LLC First Lien - Term Loan 6/17/2027  9.23%  L + 4.50%   4.73%  877   859   865   1.7%
Total Energy: Electricity                      1,815   1,814   3.5%
                                 
Energy: Oil & Gas                                
AL NGPL Holdings, LLC First Lien - Term Loan 4/14/2028  7.53%  L + 3.75%   3.78%  683   687   676   1.3%
CQP Holdco LP First Lien - Term Loan 6/5/2028  8.48%  L + 3.75%   4.73%  1,231   1,227   1,227   2.4%
Delek US Holdings, Inc. First Lien - Term Loan 11/19/2029  7.92%  S + 3.50%   4.42%  915   879   883   1.8%
Prairie ECI Acquiror LP First Lien - Term Loan 3/11/2026  9.13%  L + 4.75%   4.38%  500   492   487   1.0%
Total Energy: Oil & Gas                      3,285   3,273   6.5%
                                 
Forest Products & Paper                                
Schweitzer-Mauduit International, Inc. First Lien - Term Loan 4/20/2028  8.19%  L + 3.75%   4.44%  985   977   931   1.8%
Total Forest Products & Paper                      977   931   1.8%
                                 
Healthcare & Pharmaceuticals                                
Alvogen Pharma US, Inc. First Lien - Term Loan 12/31/2023  9.98%  S + 5.25%   4.73%  925   925   811   1.6%
Amneal Pharmaceuticals First Lien - Term Loan 5/4/2025  7.94%  L + 3.50%   4.44%  997   916   897   1.8%
ANI Pharmaceuticals, Inc. First Lien - Term Loan 11/19/2027  10.38%  L + 6.00%   4.38%  990   979   941   1.9%
ASP Navigate Acquisition Corp. First Lien - Term Loan 10/6/2027  9.09%  L + 4.50%   4.59%  987   987   964   1.9%
Athletico Management, LLC First Lien - Term Loan 2/15/2029  8.98%  S + 4.40%   4.58%  249   241   204   0.4%
Aveanna Healthcare LLC First Lien - Term Loan 7/17/2028  8.14%  L + 3.75%   4.39%  429   428   332   0.7%
Bayou Intermediate II, LLC First Lien - Term Loan 8/2/2028  8.96%  L + 4.50%   4.46%  990   986   955   1.9%
Carestream Dental Technology Parent Limited First Lien - Term Loan 9/2/2024  8.88%  L + 4.50%   4.38%  888   875   831   1.6%

19

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
CCRR Parent, Inc. First Lien - Term Loan 3/6/2028  8.14%  L + 3.75%   4.39%  983   978   937   1.9%
Confluent Health, LLC First Lien - Term Loan 11/30/2028  8.38%  L + 4.00%   4.38%  783   780   670   1.3%
Confluent Health, LLC (4) First Lien - Delayed Draw Loan 11/30/2028  8.38%  L + 4.00%   4.38%  170   96   72   0.1%
FC Compassus, LLC First Lien - Term Loan 12/31/2026  8.98%  L + 4.25%   4.73%  1,227   1,226   1,136   2.3%
Global Medical Response, Inc. First Lien - Term Loan 10/2/2025  8.42%  L + 4.25%   4.17%  490   484   346   0.7%
Golden State Buyer, Inc. First Lien - Term Loan 6/21/2026  8.92%  L + 4.75%   4.17%  948   942   906   1.8%
Help at Home, LLC First Lien - Delayed Draw Loan 10/29/2027  9.43%  S + 5.00%   4.43%  127   125   122   0.2%
Help at Home, LLC First Lien - Term Loan 10/29/2027  9.43%  S + 5.00%   4.43%  1,006   990   962   1.9%
Onex TSG Intermediate Corp. First Lien - Term Loan 2/28/2028  9.16%  L + 4.75%   4.41%  985   970   882   1.8%
PDS Holdco Inc. First Lien - Delayed Draw Loan 8/18/2028  9.23%  L + 4.50%   4.73%  138   138   127   0.3%
PDS Holdco Inc. First Lien - Term Loan 8/18/2028  9.23%  L + 4.50%   4.73%  1,347   1,342   1,239   2.5%
Revspring, Inc. (fka Dantom Systems, Inc.) First Lien - Term Loan 10/11/2025  8.73%  L + 4.00%   4.73%  1,006   1,000   974   1.8%
TTF Holdings, LLC First Lien - Term Loan 3/31/2028  8.44%  L + 4.00%   4.44%  635   631   628   1.1%
U.S. Anesthesia Partners, Inc. First Lien - Term Loan 10/2/2028  8.37%  L + 4.25%   4.12%  1,100   1,095   1,049   2.1%
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) First Lien - Term Loan 12/15/2027  9.63%  L + 5.25%   4.38%  990   984   896   1.8%
Zelis Cost Management Buyer, Inc. First Lien - Term Loan 9/30/2026  7.88%  L + 3.50%   4.38%  420   417   416   0.8%
Zotec Partners, LLC First Lien - Term Loan 2/14/2024  8.48%  L + 3.75%   4.73%  1,001   968   951   1.9%
Total Healthcare & Pharmaceuticals                      19,503   18,248   36.1%
                                 
High Tech Industries                                
Boxer Parent Company Inc. First Lien - Term Loan 10/2/2025  8.13%  L + 3.75%   4.38%  165   157   158   0.4%
Casa Systems, Inc. First Lien - Term Loan 12/20/2023  8.38%  L + 4.00%   4.38%  1,479   1,479   1,318   2.6%
CE Intermediate I, LLC First Lien - Term Loan 11/10/2028  8.59%  L + 4.00%   4.59%  993   984   948   1.9%
ConnectWise, LLC First Lien - Term Loan 9/29/2028  7.88%  L + 3.50%   4.38%  990   986   943   1.9%
Ingram Micro Inc. First Lien - Term Loan 6/30/2028  8.23%  L + 3.50%   4.73%  985   977   973   1.9%
LogMeIn, Inc. First Lien - Term Loan 8/31/2027  9.14%  L + 4.75%   4.39%  980   963   635   1.3%
Monotype Imaging Holdings Inc. First Lien - Term Loan 10/9/2026  9.68%  S + 5.00%   4.68%  724   721   713   1.4%
Quest Software US Holdings Inc. First Lien - Term Loan 2/1/2029  8.49%  S + 4.40%   4.09%  1,496   1,483   1,158   2.3%
Rocket Software, Inc. First Lien - Term Loan 11/28/2025  8.63%  L + 4.25%   4.38%  108   106   104   0.2%
Rocket Software, Inc. First Lien - Term Loan 11/28/2025  8.63%  L + 4.25%   4.38%  381   378   367   0.7%
Seattle SpinCo, Inc. First Lien - Term Loan 2/26/2027  

8.42

%  S + 4.10%   4.32%  1,203   1,193   1,203   2.4%
VeriFone Systems, Inc. First Lien - Term Loan 8/20/2025  8.36%  L + 4.00%   4.36%  1,384   1,372   1,276   2.5%
Vision Solutions, Inc. (Precisely Software Incorporated) First Lien - Term Loan 4/24/2028  8.36%  L + 4.00%   4.36%  986   984   820   1.6%
Watlow Electric Manufacturing Company First Lien - Term Loan 3/2/2028  8.15%  S + 3.75%   4.40%  344   343   332   0.7%
Total High Tech Industries                      12,126   10,948   21.8%

20

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Hotel, Gaming & Leisure                                
Arcis Golf LLC First Lien - Term Loan 11/24/2028  8.63%  L + 4.25%   4.38%  993   984   973   1.8%
ClubCorp Holdings, Inc. First Lien - Term Loan 9/18/2024  7.48%  L + 2.75%   4.73%  497   484   450   0.9%
Fertitta Entertainment, LLC First Lien - Term Loan 1/29/2029  8.32%  S + 4.00%   4.32%  993   990   945   1.9%
Herschend Entertainment Company, LLC First Lien - Term Loan 8/28/2028  8.19%  L + 3.75%   4.44%  199   197   197   0.4%
Sabre GLBL Inc. First Lien - Term Loan 12/17/2027  7.88%  L + 3.50%   4.38%  274   274   251   0.5%
Sabre GLBL Inc. First Lien - Term Loan 6/30/2028  9.42%  S + 5.10%   4.32%  357   340   331   0.7%
Sabre GLBL Inc. First Lien - Term Loan 12/17/2027  7.88%  L + 3.50%   4.38%  438   437   400   0.8%
Scientific Games International, Inc. First Lien - Term Loan 4/16/2029  7.42%  S + 3.00%   4.42%  995   988   984   2.0%
Total Hotel, Gaming & Leisure                      4,694   4,531   9.0%
                                 
Media: Advertising, Printing & Publishing                                
Oceankey (U.S.) II Corp. First Lien - Term Loan 12/15/2028  7.88%  L + 3.50%   4.38%  993   984   911   1.8%
Thryv, Inc. First Lien - Term Loan 3/1/2026  12.88%  L + 8.50%   4.38%  1,051   1,047   1,038   2.1%
Total Media: Advertising, Printing & Publishing                      2,031   1,949   3.9%
                                 
Media: Broadcasting & Subscription                                
LCPR Loan Financing LLC First Lien - Term Loan 10/16/2028  8.07%  L + 3.75%   4.32%  500   501   497   1.0%
Sinclair Television Group, Inc. First Lien - Term Loan 4/21/2029  8.17%  S + 3.85%   4.32%  746   726   711   1.3%
Total Media: Broadcasting & Subscription                      1,227   1,208   2.3%

21

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Retail                                
Apro, LLC First Lien - Term Loan 11/14/2026  7.92%  L + 3.75%   4.17%  1,326   1,319   1,292   2.6%
EG Group Limited First Lien - Delayed Draw Loan 3/31/2026  8.98%  L + 4.25%   4.73%  988   982   928   1.8%
Great Outdoors Group, LLC First Lien - Term Loan 3/6/2028  8.13%  L + 3.75%   4.38%  980   976   944   1.9%
Rent-A-Center, Inc. First Lien - Term Loan 2/17/2028  7.69%  L + 3.25%   4.44%  581   581   562   1.1%
Total Retail                      3,858   3,726   7.4%
                                 
Services: Business                                
Access CIG, LLC First Lien - Term Loan 2/27/2025  7.82%  L + 3.75%   4.07%  1,352   1,345   1,327   2.6%
Ahead DB Holdings, LLC First Lien - Term Loan 10/18/2027  8.48%  L + 3.75%   4.73%  985   985   954   1.9%
Artera Services, LLC First Lien - Term Loan 3/6/2025  8.23%  L + 3.50%   4.73%  985   980   810   1.6%
Congruex Group LLC First Lien - Term Loan 5/3/2029  9.99%  S + 5.75%   4.24%  995   972   970   1.9%
DTI Holdco, Inc. First Lien - Term Loan 4/26/2029  8.84%  S + 4.75%   4.09%  1,247   1,224   1,152   2.3%
Energize Holdco LLC First Lien - Term Loan 12/8/2028  8.13%  L + 3.75%   4.38%  871   867   835   1.7%
Indy US Bidco, LLC First Lien - Term Loan 3/6/2028  8.13%  L + 3.75%   4.38%  491   489   429   0.9%
Mermaid Bidco Inc. (Datasite) First Lien - Term Loan 12/22/2027  7.96%  L + 3.50%   4.46%  986   983   939   1.9%
Misys Limited First Lien - Term Loan 6/13/2024  6.87%  L + 3.50%   3.37%  989   990   877   1.7%
Phoenix Services International LLC First Lien - Term Loan (DIP) 3/28/2023  16.32%  S + 12.00%   4.32%  149   149   144   0.3%
Phoenix Services International LLC First Lien - Term Loan (DIP) 3/28/2023  16.32%  S + 12.00%   4.32%  222   222   214   0.4%
Phoenix Services International LLC (5) First Lien - Term Loan 3/1/2025  -   -   -   1,246   1,242   135   0.3%
Pitney Bowes Inc. First Lien - Term Loan 3/17/2028  8.43%  S + 4.11%   4.32%  983   975   908   1.8%
Presidio Holdings Inc. First Lien - Term Loan 1/22/2027  7.89%  L + 3.50%   4.39%  995   995   981   1.9%
Sitel Group First Lien - Term Loan 8/28/2028  8.14%  L + 3.75%   4.39%  1,481   1,475   1,466   2.9%
Skopima Consilio Parent LLC First Lien - Term Loan 5/12/2028  8.38%  L + 4.00%   4.38%  988   982   937   1.9%
Tempo Acquisition, LLC First Lien - Term Loan 8/31/2028  7.32%  S + 3.00%   4.32%  988   985   986   2.0%
UST Global Inc First Lien - Term Loan 11/20/2028  8.14%  L + 3.75%   4.39%  990   986   973   1.9%
VM Consolidated, Inc. First Lien - Term Loan 3/26/2028  7.63%  L + 3.25%   4.38%  2   2   2   0.0%
Total Services: Business                      16,848   15,039   29.9%
                                 
Services: Consumer                                
WW International, Inc. First Lien - Term Loan 4/13/2028  7.89%  L + 3.50%   4.39%  945   941   546   1.1%
Total Services: Consumer                      941   546   1.1%

22

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Telecommunications                                
Avaya Inc. First Lien - Term Loan 12/15/2027  8.57%  L + 4.25%   4.32%  850   841   295   0.6%
CCI Buyer, Inc. First Lien - Term Loan 12/17/2027  8.58%  S + 4.00%   4.58%  983   975   941   1.9%
ConvergeOne Holdings, Corp. First Lien - Term Loan 1/4/2026  9.38%  L + 5.00%   4.38%  1,473   1,454   863   1.7%
Digi International Inc. First Lien - Term Loan 11/1/2028  9.38%  L + 5.00%   4.38%  766   753   760   1.5%
Mavenir Systems, Inc. First Lien - Term Loan 8/18/2028  9.42%  L + 4.75%   4.67%  1,310   1,299   1,069   2.1%
Maxar Technologies Inc. First Lien - Term Loan 6/14/2029  8.67%  S + 4.35%   4.32%  995   953   995   2.0%
Patagonia Holdco LLC First Lien - Term Loan 8/1/2029  9.96%  S + 5.75%   4.21%  499   410   401   0.8%
Syniverse Holdings, LLC First Lien - Term Loan 5/13/2027  11.58%  S + 7.00%   4.58%  998   962   875   1.7%
Zayo Group Holdings, Inc. First Lien - Term Loan 3/9/2027  7.38%  L + 3.00%   4.38%  1,000   996   815   1.6%
Total Telecommunications                      8,643   7,014   13.9%
                                 
Transportation: Cargo                                
Carriage Purchaser, Inc. First Lien - Term Loan 9/30/2028  8.63%  L + 4.25%   4.38%  988   983   920   1.9%
Daseke Companies, Inc. First Lien - Term Loan 3/9/2028  8.39%  L + 4.00%   4.39%  983   979   953   1.9%
Echo Global Logistics, Inc. First Lien - Term Loan 11/24/2028  7.88%  L + 3.50%   4.38%  993   990   935   1.9%
Kenan Advantage Group, Inc.,The Second Lien - Term Loan 9/1/2027  11.63%  L + 7.25%   4.38%  1,000   984   928   1.8%
Stonepeak Taurus Lower Holdings LLC Second Lien - Term Loan 1/28/2030  11.68%  S + 7.00%   4.68%  1,000   986   935   1.9%
Total Transportation: Cargo                      4,922   4,671   9.4%
                                 
Transportation: Consumer                                
Avolon TLB Borrower 1 (US) LLC First Lien - Term Loan 12/1/2027  6.60%  L + 2.25%   4.35%  613   595   612   1.2%
First Student Bidco Inc. First Lien - Term Loan 7/21/2028  7.73%  L + 3.00%   4.73%  362   361   329   0.7%
First Student Bidco Inc. First Lien - Term Loan 7/21/2028  7.73%  L + 3.00%   4.73%  135   134   122   0.2%
Lakeland Tours, LLC Second Lien - Term Loan 9/25/2025  10.41%  L + 6.00%   4.41%  748   644   612   1.2%
Safe Fleet Holdings LLC First Lien - Term Loan 2/16/2029  8.17%  S + 3.85%   4.32%  638   635   618   1.2%
United AirLines, Inc. First Lien - Term Loan 4/21/2028  8.11%  L + 3.75%   4.36%  983   978   973   1.9%
Total Transportation: Consumer                      3,347   3,266   6.4%

23

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Utilities: Electric                                
PG&E Corporation First Lien - Term Loan 6/23/2025  7.44%  L + 3.00%   4.44%  488   486   484   1.0%
Total Utilities: Electric                      486   484   1.0%
                                 
Utilities:Oil & Gas                                
AL GCX Holdings, LLC First Lien - Term Loan 5/17/2029  7.57%  S + 3.90%   3.67%  90   90   89   0.2%
Total Utilities: Oil & Gas                      90   89   0.2%
                                 
Total Investments made in United States Companies                      130,209   120,959   240.1%
                                 
Investments made in Ireland Companies                                
Aerospace & Defense                                
Setanta Aircraft Leasing DAC First Lien - Term Loan 11/2/2028  6.73%  L + 2.00%   4.73%   1,000   998   997   2.0%
Total Aerospace & Defense                      998   997   2.0%
                                 
Services: Consumer                                
Cimpress plc First Lien - Term Loan 5/17/2028  7.88%  L + 3.50%   4.38%   985   977   889   1.8%
Total Services: Consumer                      977   889   1.8%
                                 
Total Investments made in Ireland Companies                      1,975   1,886   3.8%
                                 
Investments made in Luxembourg Companies                                
Containers, Packaging & Glass                                
Mar Bidco S.a r.l. First Lien - Term Loan 7/7/2028  9.03%  L + 4.30%   4.73%   14   14   13   0.0%
Total Containers, Packaging & Glass                      14   13   0.0%
                                 
Telecommunications                                
Venga Finance S.a r.l. First Lien - Term Loan 6/28/2029  9.48%  L + 4.75%   4.73%  998   970   919   1.8%
Zacapa S.a r.l. First Lien - Term Loan 3/22/2029  8.83%  S + 4.25%   4.58%  1,481   1,477   1,427   2.8%
Total Telecommunications                      2,447   2,346   4.6%
                                 
Total Investments made in Luxembourg Companies                     $2,461  $2,359   4.6%

24

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest Rate (2)  Basis Point Spread Above Index (2)  Interest Rate Floor / Base Rate (2)  Par Amount  Amortized Cost  Fair Value  % of Net Assets (3) 
Investments made in Netherland Companies                                
Hotel, Gaming & Leisure                                
Playa Resorts Holding B.V. First Lien - Term Loan 1/5/2029  8.58%  S + 4.25%   4.33%   1,000   965   977   1.9%
Total Hotel, Gaming & Leisure                      965   977   1.9%
                                 
Total Investments made in Netherland Companies                     $965  $977   1.9%
                                 
Investments made in United Kingdom Companies                                
Banking, Finance, Insurance & Real Estate                                
HIG Finance 2 Limited First Lien - Term Loan 11/12/2027  7.69%  L + 3.25%   4.44%   1,474   1,474   1,438   2.9%
Total Banking, Finance, Insurance & Real Estate                      1,474   1,438   2.9%
                                 
Total Investments made in United Kingdom Companies                     $1,474  $1,438   2.9%
                                 
Total Non-controlled/Non-Affiliated Investments                     $137,084  $127,619   253.3%

(1)All investments are non-controlled/non-affiliated investments as defined by the Investment Company Act of 1940 (the “1940 Act”). The provisions of the 1940 Act classify investments based on the level of control that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be “non-controlled” when the Company owns 25% or less of the portfolio company’s voting securities and “controlled” when the Company owns more than 25% of the portfolio company’s voting securities. The provisions of the 1940 Act also classify investments further based on the level of ownership that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as “non-affiliated” when the Company owns less than 5% of a portfolio company’s voting securities and “affiliated” when the Company owns 5% or more of a portfolio company’s voting securities.

(2)The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”) which reset monthly or quarterly. For each such investment, the Fund has provided the spread over LIBOR and the current contractual interest rate in effect at December 31, 2022. As of December 31, 2022, rates for 1M L, 3M L, 6M L, and 12M L are 4.39%, 4.77%, 5.14%, and 5.48% respectively. Due to uncertainties with LIBOR, investments are starting to transition from LIBOR to Secured Overnight Financing Rate (“SOFR” or “S”). As of December 31, 2022, rates for 1M S, 3M S, 6M S, and 12M S are 4.36%, 4.59%, 4.78, and 4.87% respectively.
(3)Percentages are based on net assets of $50,375 thousand as of December 31, 2022.
(4)Of the entire $170 thousand commitment to Confluent Health, LLC, $74 thousand was unfunded as of December 31, 2022.
(5)Investment or a portion of the investment was on non-accrual status as of December 31, 2022.

The accompanying notes are an integral part of these consolidated financial statements

25

Steele Creek Capital Corporation

Notes to the Consolidated Financial Statements

(unaudited)

(in thousands, except share and per share data)

 

1. ORGANIZATION

 

Steele Creek Capital Corporation (which is referred to as the “Company”, “we”, “us” and “our”) was originally organized as MSC Capital LLC as a Delaware limited liability company on June 3, 2020. The Company commenced operations as MSC Capital LLC on July 1, 2020. On October 7, 2020, MSC Capital LLC converted to a Maryland corporation. We are a closed-end externally managed, non-diversified management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”). The Company will electhas elected for federal income tax purposes to be treated as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”).

 

In September 2020, we formed a wholly-owned special purpose financing vehicle, Steele Creek Funding I, LLC (“Funding I”), a Delaware limited liability company.

 

Steele Creek Investment Management LLC (the “Investment Advisor” or “Administrator”) is our investment adviser and an affiliate of Moelis Asset Management LP (“Moelis Asset”). We entered into an Investment Advisory Agreement with the Investment Advisor who, subject to the supervision of our board of directors (the “Board”), manages the day-to-day operations and provides investment advisory services to the Company. The Company has no paid employees and the Investment Advisor has entered into an agreement (the “Custody Agreement”) to delegate certain administrative and custody functions to US Bank (the “Custodian”).

 

The Company is a financial services company that primarily invests in syndicated corporate bank loans, bonds, other debt securities, and structured products. The investment objective is to generate high current income by investing primarily in fixed income instruments, including broadly syndicated bank loans, structured products, mezzanine financings and senior secured bonds.

 

The term “shares” herein refers to membership interest in the Company prior to conversion.

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Accounting - The consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company and its consolidated subsidiaries. The Company is an investment company following accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services-Investment Companies. The consolidated financial statements reflect all adjustments and reclassifications that, in the opinion of management, are necessary for the fair presentation of the results of operations and financial condition as of and for the periods presented. All significant intercompany balances and transactions have been eliminated. Financial statements are prepared in accordance with GAAP for financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6 or 10 of Regulation S-X. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial statements for the period presented, have been included. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 20212022 filed with the Securities and Exchange Commission (“SEC”).

 

Use of Estimates - The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Investment Advisor to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from such estimates included in the consolidated financial statements.

 

Securities Transactions - Securities transactions are recorded on the trade date. The trade date for loans purchased in the “primary market” and for loans and other investments purchased in the “secondary market” is the date on which the transaction is entered. Cost is determined based on consideration given, adjusted for amortization of original issuance discounts (“OID”), market discounts and premiums.


26

Investment Income - For debt investments, we record interest income on the accrual basis to the extent that such amounts are expected to be collected. Where applicable, OID and purchased discounts and premiums are accreted into interest income using the effective interest method. Loan origination fees are deferred and accreted into interest income using the effective interest method. We record prepayment premiums on loans and other investments as interest income when such amounts are received. We stop accruing interest on investments when it is determined that interest is no longer collectible. For the three and six months ended June 30,March 31, 2023, there was one loan on non-accrual status. For the three months ended March 31, 2022, and June 30, 2021, there were no loans in non-accrual status.

 

Expenses - Expenses include management fees, incentive fees, administrator fees, custody fees, legal fees, audit and tax service expenses, third-party valuation fees and other general and administrative expenses. Expenses are recognized on an accrual basis.

 

Organizational and offering costs - Organizational costs include costs relating to the formation and incorporation of the business and are expensed as incurred. Offering costs include legal fees and other costs pertaining to the registration statement and the private placement memorandum. Offering costs are deferred and amortized over a period of twelve months.

 

Realized Gain or Loss and Unrealized Gain or Loss - Realized gain or loss from an investment is recorded at the time of disposition and calculated using the weighted average cost method. Unrealized gain or loss reflects the changes in fair value of investments as determined in compliance with the Investment Advisor’s valuation policy.

 

Cash - The Company maintains its cash in a bank account, which, at times, may exceed federally insured limits. As of June 30, 2022,March 31, 2023, and December 31, 2021,2022, our cash balance exceeded federally insured limits. The Investment Advisor continuously monitors the performance of the bank where the account is held in order to manage any risk associated with such account.

 

Earnings per share - The Company calculates earnings per share by dividing the net increase or decrease in net assets resulting from operations by the weighted average shares for the period.

 

Paid-in-capital in Excess of Par Value - The Company records the proceeds from the sale of its shares on a net basis to capital stock and paid-in capital in excess of par value, excluding all offering costs.

 

Fair Value of Financial Instruments - Assets and liabilities which qualify as financial instruments under relevant authoritative guidance are carried at fair value or contractual amounts approximating fair value.

 

Investment Classification - As required by the 1940 Act, investments are classified by level of control. “Control“Controlled Investments” are defined as investments in portfolio companies that we are deemed to control, as defined in the 1940 Act. “Affiliate“Affiliated Investments” are investments in those companies that are affiliated companies, as defined in the 1940 Act, other than ControlControlled Investments. “Non-Control/Non-Affiliate“Non-Controlled/Non-Affiliated Investments” are those that are neither ControlControlled Investments nor AffiliateAffiliated Investments. Generally, under the 1940 Act, we are deemed to control a company in which we have invested if we own more than 25% of the voting securities of such company. We are deemed to be an affiliateaffiliated of a company if we own 5% or more of the voting securities of such company. As of June 30, 2022March 31, 2023 and December 31, 2021,2022, all of our investments were Non-Control/Non-AffiliateNon-Controlled/Non-Affiliated investments.

 

Valuation of Investments - We value our investments in accordance with the 1940 Act and ASC Topic 820 – Fair Value Measurement and Disclosures, (“ASC Topic 820”) as determined in good faith by our Board based on the input of our Investment Advisor, the respective independent valuation firms, and the Audit Committee. ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Investments are reflected on the Consolidated Statement of Assets and Liabilities at fair value, with changes in unrealized gains and losses resulting from changes in fair value reflected in the accompanying Consolidated Statement of Operations as “net change in unrealized appreciation on non-controlled/non-affiliatenon-affiliated company investments.” Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (i.e., the exit price). Publicly-traded investments in active markets are reported at the market closing price. Investment transactions are recorded on a trade date basis (for publicly-traded investments and securities traded through dealer markets) or upon closing of the transaction (for private investments). The cost of an investment includes all costs incurred by the Company as part of the purchase of such investment. The difference between the initially recognized cost and the subsequent fair value measurement of an investment is reflected as “net change in unrealized appreciation on non-controlled/non-affiliate company investments” in the Consolidated Statement of Operations.

 

27

We value our investments in accordance with the Investment Advisor’s valuation policy. Valuations are prepared by the Investment Advisor and approved by the valuation committee on a monthly basis.CFO of the Company for each accounting close.

 

Transfers of investments between different levels of the fair value hierarchy are recorded at the end of the period. For the three and six months ended June 30,March 31, 2023 and March 31, 2022 and June 30, 2021 there were no transfers between levels.


Income Taxes - For the three and six months ended June 30,March 31, 2023 and March 31, 2022, and June 30, 2021, we have complied with the requirements of Subchapter M of the Code and expect to be treated as a RIC for federal income tax purposes. In this regard, we account for income taxes using the asset and liability method prescribed by ASC Topic 740 – Income Taxes (“ASC Topic 740”). Under this method, income taxes are provided for amounts currently payable and for amounts deferred as tax assets and liabilities based on differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. Based upon our qualification and election to be treated as a RIC for federal income tax purposes, we typically do not incur any material federal income taxes. However, we may choose to retain a portion of our calendar year income, which may result in the imposition of an excise tax.

  

We recognize the effect of a tax position in our Consolidated Financial Statements in accordance with ASC Topic 740 when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by the applicable tax authority. Tax positions not considered to satisfy the “more-likely-than-not” threshold would be recorded as a tax expense or benefit. Penalties or interest, if applicable, that may be assessed relating to income taxes would be classified as other operating expenses in the financial statements. There were no tax accruals relating to uncertain tax positions and no amounts accrued for any related interest or penalties with respect to the period presented herein. The Company’s determinations regarding ASC Topic 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Although the Company files both federal and state income tax returns, the Company’s major tax jurisdiction is federal.

 

Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and net realized gains recognized for financial reporting purposes. Differences between tax regulations and GAAP may be permanent or temporary. Permanent differences are reclassified among capital accounts in the Consolidated Financial Statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

 

The 2021 and 2020 to 2022 tax years for the Company are not yet closed and remain subject to examination by U.S. Federal, state and local tax authorities.

 

Recent Accounting Pronouncements

 

The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and either determined to be not applicable or expected to have minimal impact on its consolidated financial statements.

 

In March 2020, the FASB issued ASU No. 2020-04, “Reference“Reference Rate Reform (Topic 848),” which provides 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 amendments apply only to contracts, hedging relationships, and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), which expanded the scope of Topic 848 to include derivative instruments impacted by discounting transition. ASU 2020-04 and ASU 2021-01 are effective for all entities through December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. In December 2022 the FASB issued Accounting Standards Update 2022-06, Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848 which, extended the effective date of Topic 848 from December 31, 2022 to December 31, 2024.  The Company is currently evaluating the impact of the adoption of ASU 2020-04 and 2021-01 on its consolidated financial statements.

 

In March 2022, the FASB issued ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326)”, which is intended to address issues identified during the post-implementation review of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The amendment, among other things, eliminates the accounting guidance for troubled debt restructurings by creditors in Subtopic 310-40, “Receivables - Troubled-Troubled Debt Restructurings by Creditors”, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The new guidance is effective for interim and annual periods beginning after December 15, 2022. The Company is currently evaluating the impact of the adoption of ASU 2022-02 did not have a material impact on itsthe consolidated financial statements.

  

In June 2022, the FASB issued Accounting Standards Update, or ASU, 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, or ASU 2022-03, which changed the fair value measurement disclosure requirements of ASC Topic 820, Fair Value Measurements and Disclosures, or ASC 820. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The new guidance is effective for fiscal years beginning after December 15, 2023, including interim periods therein. Early application is permitted. The Company is currently evaluating the impact the adoption of this new accounting standard will have on its consolidated financial statements, but the impact of the adoption is not expected to be material.


28

3. AGREEMENTS AND RELATED PARTY TRANSACTIONS

 

Investment Advisory Agreement

 

Pursuant to the investment advisory agreement between the Company and the Investment Advisor (the “Investment Advisory Agreement”), we have agreed to pay a fee for investment advisory and management services consisting of two components, a base management fee and an incentive fee. The cost of both the base management fee and the incentive fee will ultimately be borne by our stockholders.

 

Our Investment Advisor has agreed to waive its fees (base management and incentive fee), without recourse against or reimbursement by us, for any quarter where net investment income plus net realized capital gains is not sufficient to maintain a targeted annual distribution payment on shares of common stock outstanding on the relevant payment dates of 6.0% based on our net asset valuationvalue per share and has agreed to waive all or a portionshare.

On August 15, 2022 the Board approved the renewal of the base management and income incentive fee, (quarterly)Investment Advisory Agreement which automatically renews for successive one-year periods each September 17th; provided that such continuance is specifically approved at least annually by the vote of the Board or by the vote of a majority of the outstanding voting securities of the Company and the capital incentive fee (annually) where net investment income plus net realized capital gains is not sufficient to maintainvote of a majority of the targeted annual distribution payment. The Advisor’s fees will be calculatedIndependent Directors, in accordance with the Investment Advisory Agreement oncerequirements of the annual distribution payment has been earned with realized income.1940 Act. 

 

Base Management Fee

 

The base management fee is calculated at a maximum annual rate of 1.0% of the average of the weighted average (based on the number of shares outstanding each day in the quarter) of our gross assets (including uninvested cash and cash equivalents) at the end of each of the two most recently completed calendar quarters. For each the quarter, the base management fee is calculated based on the average of our gross assets as of such quarter-end. The base management fee for any partial quarter is pro-rated based on the number of days actually elapsed in that quarter relative to the total number of days in such quarter. On August 13, 2021, the Board agreed to make investments rather than gross assets the basis for their fee to be more in line with the waivers implemented for management fees.

 

Gross and net management fees for the three and six months ended June 30, 2022March 31, 2023 were $414$372 thousand and $845 thousand, respectively. Net management fees for the three and six months ended June 30, 2022 were $143 thousand and $364$320 thousand, respectively. The CompanyInvestment Advisor elected to waive a portion of the management fee and charged management fees on investments rather than gross assets.

 

Gross and net management fees for the three and six months ended June 30, 2021March 31, 2022 were $451$431 thousand and $740 thousand, respectively. Net management fees for the three and six months ended June 30, 2021 were $235 thousand and $409$221 thousand, respectively. The CompanyInvestment Advisor elected to waive a portion of the management fee and charged management fees on investments rather than gross assets.

 

Incentive Fee

 

The Incentive Fee will consist of an income-based component and a capital gains component.

 

The portion of the incentive fee based on income is determined and paid quarterly in arrears commencing with the first calendar quarter following the Company’s election to be regulated as a BDC, and equals 15% of the pre-incentive fee net investment income in excess of a 1.5% quarterly (or 6% annually) “hurdle rate.” There are no catch-up provisions applicable to income-based incentive fees under the Investment Advisory Agreement.

 

Pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees, such as commitment, origination, structuring, diligence, managerial and consulting fees or other fees the Company receives from portfolio companies) that the Company accrues, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under the administration agreement (the “Administration Agreement”) we have entered into with the Administrator, and any interest expense and dividends paid on any issued and outstanding indebtedness or preferred stock, respectively, but excluding, for avoidance of doubt, the income-based incentive fee accrued under GAAP). Pre-incentive fee net investment income also includes, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero coupon securities), accrued income that the Company has not yet received in cash. The Investment Advisor is not under any obligation to reimburse the Company for any part of the income-based incentive fees it received that was based on accrued interest that the Company never actually received. Because of the structure of the incentive fee, it is possible that we may pay an incentive fee in a quarter where we incur a loss. For example, if we receive pre-incentive fee net investment income in excess of the Hurdle rate for a quarter, we will pay the applicable incentive fee even if we have incurred a loss in that quarter due to realized and unrealized capital losses.


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The portion of the incentive fee based on capital-gains is payable at the end of each calendar year in arrears, equals 15% of cumulative realized capital gains from the date of the Company’s election to be regulated as a BDC to the end of each calendar year, less cumulative net realized capital losses and unrealized capital depreciation. We will accrue, but will not pay, a capital gains incentive fee with respect to unrealized appreciation. Also, it should be noted that while we accrue the capital incentive fee quarterly, the expense will fluctuate with the Company’s overall investment results and the expense will be finalized at year end.

 

In determining the capital gains incentive fee payable to the Investment Advisor, we calculate the cumulative aggregate realized capital gains and cumulative aggregate realized capital losses since our inception, and the aggregate unrealized capital depreciation as of the date of the calculation, as applicable, with respect to each of the investments in our portfolio. For this purpose, cumulative aggregate realized capital gains, if any, equals the sum of the differences between the net sales price of each investment, when sold, and the original cost of such investment since our inception. Cumulative aggregate realized capital losses equals the sum of the amounts by which the net sales price of each investment, when sold, is less than the original cost of such investment since our inception. Aggregate unrealized capital depreciation equals the sum of the difference, if negative, between the valuation of each investment as of the applicable calculation date and the original cost of such investment. At the end of the applicable year, the amount of capital gains that serves as the basis for our calculation of the capital gains incentive fee equals the cumulative aggregate realized capital gains less cumulative aggregate realized capital losses, less aggregate unrealized capital depreciation, with respect to our portfolio of investments.

 

For the three and six months ended June 30, 2022,March 31, 2023, the CompanyInvestment Advisor earned a gross income incentive fee of $76 thousand and did not charge anearn a capital incentive fee. For the sixthree months ended June 30,March 31, 2022, the companyCompany returned $110 thousand of accrued income incentive fees. This reversal was necessary due to the company’sCompany’s performance in the first quarter of 2022.

 

For the three and six months ended June 30, 2021, the Company waived a portion of the capital Incentive Fee to pay the 6% priority dividend. Gross capital incentive fees were $95 thousand and $205 thousand, respectively. After the waiver the net capital incentive fee was $25 thousand and $70 thousand, respectively. 

Fee Waivers

 

On February 18, 2021, the Company and the Investment Advisor executed a Waiver Letter (the “Waiver”), whereby the Investment Advisor agrees to waive all or such portion of the Base Management Fee, the Income Incentive Fee and the Capital Incentive Fee (collectively the “Fees”) that they would otherwise be entitled to receive under the Investment Advisory Agreement, dated as of September 16, 2020 (the ‘Agreement”) for any quarter prior to a Liquidity Event to the extent required in order for the Company to earn a quarterly net investment income plus net realized capital gains to maintain an annual distribution payment of shares of common stock outstanding of 6.0%. The Company’s performance will impact the amount and timing of the fee waivers.

 

For the three and six months ended June 30,March 31, 2023 and March 31, 2022, and June 30, 2021, the Board agreed upon a fee waiver to reduce the basis for the quarterly management fee from gross assets to investments. For the three and six months ended June 30,March 31, 2023 and March 31, 2022 the CompanyInvestment Advisor waived $89$52 thousand and $224 thousand, respectively. For the three and six months ended June 30, 2021 the Company waived $216 thousand and $331$135 thousand, respectively. This fee waiver will be re-evaluated annually.

 

Additionally, theThe Company’s performance for the three and six months ended June 30,March 31, 2023 produced realized income sufficient to charge a full management fee. Therefore, this waiver was not used for the three months ended March 31, 2023. For the three months ended March 31, 2022, the Company’s performance did not produce realized income sufficient to charge a full management fee. Therefore, the Company waived an additional $182 thousand and $257$75 thousand of management fees for the three and six months ended June 30, 2022, respectively. The Company waived $70 thousand and $135 thousand of incentive fees for the three and six months ended June 30, 2021, respectively.March 31, 2022.

  

Administration Agreement

 

The Administration Agreement provides that the Administrator will furnish us with office facilities and equipment and will provide us with clerical, bookkeeping, recordkeeping and other administrative services at such facilities. Under the Administration Agreement, the Administrator will perform, or oversee the performance of, our required administrative services, which will include being responsible for the financial and other records that we are required to maintain and preparing reports to our stockholders and reports and other materials filed with the SEC. In addition, the Administrator will assist us in determining and publishing our net asset value, oversee the preparation and filing of our tax returns and the printing and dissemination of reports and other materials to our stockholders, and generally oversee the payment of our expenses and the performance of administrative and professional services rendered to us by others. Under the Administration Agreement, the Administrator will also provide managerial assistance on our behalf to those portfolio companies that have accepted our offer to provide such assistance.

 

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Under the Administration Agreement, we will reimburse the Administrator based upon our allocable portion (subject to the review and approval of our Board) of the Administrator’s overhead (including rent) in performing its obligations under the Administration Agreement, including rent, the fees and expenses associated with performing compliance functions and our allocable portion of the cost of our Chief Financial Officer and Chief Compliance Officer, and any of their respective staff who provide services to us, operations staff who provide services to us, and internal audit staff, if any, to the extent internal audit performs a role in our Sarbanes-Oxley internal control assessment. In addition, if requested to provide significant managerial assistance to our portfolio companies, the Administrator will be paid an additional amount based on the services provided, which shall not exceed the amount we receive from such portfolio companies for providing this assistance. The Administration Agreement will have an initial term of two years and thereafter may be renewed annually with the approval of our Board. The Administration Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other party. To the extent that the Administrator outsources any of its functions, we will pay the fees associated with such functions on a direct basis without any incremental profit to the Administrator.


On August 15, 2022 the Board approved the renewal of the Administration Agreement which automatically renews for successive one-year periods each September 17th; provided that such continuance is specifically approved at least annually by the vote of the Board or by the vote of a majority of the outstanding voting securities of the Company and the vote of a majority of the members of the Company’s Board who are not parties to this Agreement or “interested persons” (as such term defined in Section 2(a)(19) of the Investment Company Act) of any such party, in accordance with the Investment Company Act.

Related Party Transactions

 

As of June 30, 2022,March 31, 2023, affiliates owned approximately 45%42% of the Company representing approximately $21,893$22,055 thousand of the Company’s net assets. During the year ended December 31, 2022 an affiliate of the Company contributed $250 thousand of cash in exchange for equity in the Company. As of December 31, 2021,2022, affiliates owned approximately 55%43% of the Company representing approximately $25,901$21,458 thousand of the Company’s net assets. 

 

For the three and six months ended June 30, 2022, Moelis Asset, parent of the Investment Advisor did not make a contribution to the Company. For the three months ended June 30, 2021, Moelis Asset, parent of the Investment Advisor did not make a contribution to the Company. For the six months ended June 30, 2021, Moelis Asset contributed approximately $36 thousand to pay organizational and offering costs incurred by the Company related to the formation of the entity, respectively. Moelis Asset has incurred these expenses and they will not be charged back to the Company.

Separate from the contributions made above, the Company may, from time to time, purchase investments from, or sell investments to affiliates of our Investment Advisor at fair value on the trade date. For the three and six months ended June 30,March 31, 2023 and March 31, 2022 and June 30, 2021 there were no purchases of investments from or sales of investments to affiliates of our Investment Advisor.

 

Prior to the MSC Capital LLC’s conversion to a corporation and election to be treated as a BDC, it did not pay the Investment Advisor for the services it provided to MSC Capital LLC. Similarly, the affiliated directors and officers of the Company did not receive compensation from the Company. Upon conversion, the Company began accruing directors’ compensation for the three independent directors in accordance with the governing documents. For the three and six months ended June 30,March 31, 2023 and March 31, 2022, the Company incurred $20 thousand and $40$20 thousand in directors’ fees expense, respectively.For the three and six months ended June 30, 2021, the Company incurred $22 thousand and $42 thousand in directors’ fees expense, respectively. On August 13, 2021, the Board agreed to make investments rather than gross assets the basis for their fee to be more in line with the waivers implemented for management fees.

  

The Company carries employment practices liability, directors and officers and errors and omission insurance. For the best interests of the Company, these policies are joint liability policies with Moelis Asset and its affiliates.

 

4. INVESTMENTS

 

Fair Value Measurements

 

We value our investments on a monthly basisfor each accounting close at fair value in accordance with the 1940 Act and ASC Topic 820, which defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Due to the uncertainty inherent in the valuation process, estimates of fair value may differ significantly from the values that would have been used had a ready market for our investments existed, and the differences could be material. Additionally, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on the investments to be different than the valuations currently assigned.

 

Investments for which observable market prices in active markets do not exist are reported at fair value, as determined by the Investment Advisor using the best information available. The amount determined to be fair value may incorporate the Investment Advisor’s own assumptions (including assumptions that the Investment Advisor believes market participants would use in valuing the investment, and assumptions relating to appropriate risk adjustments for non-performance and lack of marketability).

 

The fair values assigned to our investments are based upon available information and do not necessarily represent amounts which might ultimately be realized. Due to the absence of readily determinable fair values and the inherent uncertainty of valuations, the estimated fair values may differ significantly from values that would have been used had a ready market for the securities existed, and the differences could be material.


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The guidance establishes a framework for measuring fair value, and requires enhanced disclosures about fair value measurements. The fair value hierarchy prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment, the characteristics specific to the investment, and the state of the marketplace (including the existence and transparency of transactions between market participants). Investments with readily-available actively quoted prices or for which fair value can be measured from actively-quoted prices in an orderly market will generally have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Investments measured and reported at fair value are classified and disclosed in one of the following categories (from highest to lowest) based on inputs:

 

Level 1 – Quoted prices (unadjusted) are available in active markets for identical investments that the Company has the ability to access as of the reporting date. The type of investments which would generally be included in Level 1 include listed equity securities and listed derivatives. The Company, to the extent that it holds such investments, does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

 

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. This may include valuations based on executed trades, broker quotations that constitute an executable price, and alternative pricing sources supported by observable inputs which, in each case, are either directly or indirectly observable for the asset in connection with market data at the measurement date.

 

Level 3 – Pricing inputs are unobservable for the investments and include situations where there is little, if any, market activity for the investments. The inputs into the determination of fair value require significant judgment or estimation by the Investment Advisor. In certain cases, investments classified within Level 3 may include securities for which we have obtained indicative quotes from broker-dealers that do not necessarily represent prices the broker may be willing to trade on.

 

The valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs. Our loans are predominately valued based on evaluated prices from a nationally recognized independent pricing service or from third-party brokers who make markets in such debt investments. When possible, we make inquiries of third-party pricing sources to understand their use of significant inputs and assumptions. We review the third-party fair value estimates and perform procedures to validate their reasonableness, including an analysis of the range and dispersion of third-party estimates, frequency of pricing updates, comparison of recent trade activity for similar securities, and review for consistency with market conditions observed as of the measurement date.

 

There may be instances when independent or third-party pricing sources are not available, or cases where we believe that the third-party pricing sources do not provide sufficient evidence to support a market participant’s view of the fair value of the debt investment being valued. These instances may result from an investment in a less liquid loan such as a middle market loan, a mezzanine loan or unitranche loan, or a loan to a company that has become financially distressed. In these instances, we may estimate the fair value based on a combination of a market yield valuation methodology and evaluated pricing discussed above, or solely based on a market yield valuation methodology. Under the market yield valuation methodology, we estimate the fair value based on a discounted cash flow technique. For these loans, the unobservable inputs used in the market yield valuation methodology to measure fair value reflect management’s best estimate of assumptions that would be used by market participants when pricing the investment in a hypothetical transaction, including estimated remaining life, current market yield and interest rate spreads of similar loans and securities as of the measurement date. We will estimate the remaining life based on market data for the average life of similar loans. However, if we have information that the loan is expected to be repaid in the near term, we would use an estimated remaining life based on the expected repayment date. The average life to be used to estimate the fair value of our loans may be shorter than the legal maturity of the loans since many loans are prepaid prior to the maturity date. The interest rate spreads used to estimate the fair value of our loans is based on current interest rate spreads of similar loans. If there is a significant deterioration of the credit quality of a loan, we may consider other factors that a hypothetical market participant would use to estimate fair value, including the proceeds that would be received in a liquidation analysis.

 

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of observable input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgement and considers factors specific to the investment.


The following fair value hierarchy table sets forth our investments by level as of June 30, 2022:March 31, 2023:

 

  June 30, 2022 
  Total  Level 1  Level 2  Level 3 
Term Loans $131,581  $    -  $131,581  $     - 
Total Investments $131,581  $-  $131,581  $- 
  March 31, 2023 
  Total  Level 1  Level 2  Level 3 
Term Loans $127,469  $   -  $127,469  $- 
Collateralized Loan Obligations  986   -   986   - 
Total Investments $128,455  $-  $128,455  $- 

 

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The following fair value hierarchy table sets forth our investments by level as of December 31, 2021:2022:

 

  December 31, 2021 
  Total  Level 1  Level 2  Level 3 
Term Loans $106,997  $      -  $106,997  $      - 
Total Investments $106,997  $-  $106,997  $- 
  December 31, 2022 
  Total  Level 1  Level 2  Level 3 
Term Loans $127,619  $   -  $127,619  $   - 
Collateralized Loan Obligations  -   -   -   - 
Total Investments $127,619  $-  $127,619  $- 

 

5. EARNINGS PER SHARE

 

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30,March 31, 2023 and March 31, 2022:

 

  For the
three months
ended
June 30,
2022		  For the
six months
ended
June 30,
2022		 
Numerator - net earnings $(6,615) $(7,081)
Denominator - weighted average shares  5,157   4,980 
Net earnings per share $(1.28) $(1.42)
  For the
three months
ended
March 31, 2023		  For the
three months
ended
March 31,
2022		 
Numerator - net earnings (loss) $2,471  $(466)
Denominator - weighted average shares  5,692   4,802 
Net earnings (loss)  per share $0.43  $(0.10)

 

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2021:

  For the
three months
ended
June 30,
2021		  For the
six months
ended
June 30,
2021		 
Numerator - net earnings $755  $1,539 
Denominator - weighted average shares  3,081   2,868 
Net earnings per share $0.25  $0.54 

6. NET ASSETS

 

The Company has been actively fundraising since its inception. The table below summarizes the capital the Company has raised and the shares issued to investors during the sixthree months ended June 30, 2022.March 31, 2023.

 

Date Closed Capital
Raised
(in thousands)		  Shares
Issued		 
Balance at December 31, 2021 $45,555   4,311,321 
January 7, 2022  4,395   401,369 
January 21, 2022  675   61,059 
February 4, 2022  725   65,809 
February 18, 2022  100   9,299 
March 4, 2022  374   34,875 
March 18, 2022  839   80,506 
Balance at March 31, 2022 $52,663   4,964,238 
April 1, 2022  769   72,225 
April 18, 2022  347   32,246 
May 6, 2022  724   68,479 
May 20, 2022  861   87,990 
June 3, 2022  234   23,769 
June 17, 2022  247   25,801 
Balance at June 30, 2022 $55,845   5,274,748 

Date Closed Capital
Raised
(in thousands)		  Shares
Issued		 
Balance at December 31, 2022 $59,241   5,643,073 
January 3, 2023  344   38,579 
February 1, 2023  50   5,300 
March 1, 2023  221   23,458 
Balance at March 31, 2023 $59,856   5,710,410 

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The table below summarizes the capital the Company has raised and the shares issued to investors during the sixthree months ended June 30, 2021.March 31, 2022.

 

Date Closed Capital
Raised
(in thousands)		  Shares
Issued		 
Balance at December 31, 2020 $27,108   2,633,228 
March 4, 2021  600   54,898 
March 19, 2021  200   18,268 
Balance at March 31, 2021  27,908   2,706,394 
April 5, 2021  525   48,062 
April 16, 2021  500   45,400 
June 4, 2021  10,699   974,743 
June 18, 2021  84   7,615 
Balance at June 30, 2021  39,716   3,782,214 
Date Closed Capital
Raised
(in thousands)		  Shares
Issued		 
Balance at December 31, 2021 $45,555   4,311,321 
January 7, 2022  4,395   401,369 
January 21, 2022  675   61,059 
February 4, 2022  725   65,809 
February 18, 2022  100   9,299 
March 4, 2022  374   34,875 
March 18, 2022  839   80,506 
Balance at March 31, 2022 $52,663   4,964,238 

 

During the three and six months ended June 30, 2022,March 31, 2023, the Company issued 310,510 shares and 963,42767,337 shares with an aggregate value of $3,182 thousand and $10,290 thousand, respectively.$615 thousand. During the three and six months ended June 30, 2021,March 31, 2022, the Company issued 1,075,820 shares and 1,148,986652,917 shares with an aggregate value of $11,808 thousand and $12,608 thousand, respectively. $7,108 thousand.

 

As of June 30, 2022,March 31, 2023, and December 31, 20212022 the Company had 5,274,7485,710,410 and 4,311,3215,643,073 shares of common stock, $0.001 par value per share, outstanding, respectively. 

 

7. CREDIT FACILITY

 

On October 13, 2020, Funding I entered into a two-year secured revolving Credit Agreement with BNP Paribas (“BNP”) as lender and administrative agent (the “BNP Credit Facility”) providing a maximum of $45,000 thousand (“Maximum Facility Amount”) to Funding I. During the Credit Facility’s revolving period (earlier of the termination by the borrower or twelve month anniversary of the closing date), it bears interest at London Interbank Offered Rate, or LIBOR, plus 175 basis points. The Company created a wholly owned subsidiary, Funding I, which it will use to hold the Company’s investments, and a first priority continuing security interest in, to and under each investment, all underlying investments and underlying assets has been granted to BNP to be used as collateral for the BNP Credit Facility. The Company began transferring investments into Steele Creek Funding I, LLC in October 2020.

 

Funding I is required to pay an administrative agent fee equal to $25 thousand per annum and a structuring fee equal to 0.25% of the Maximum Facility Amount paid on the twelve-month anniversary of the closing date. Additionally, an unused fee is payable quarterly in arrears in an amount equal to 0.70% on the actual daily unused amount greater than 20% of the Maximum Facility Amount under the BNP Credit Facility from April 13, 2021 to the end of the revolving period.

 

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On April 29, 2021, Funding I executed an amendment to the BNP Credit Facility. The amendment solidified the LIBOR transition to Secured Overnight Financing Rate (“SOFR”) for the planned discontinuation of LIBOR. The amendment also increased the Individual Lender Maximum Facility Amount from $45,000 thousand to $80,000 thousand.

  

On October 28, 2021, the Company executed an additional amendment to the Credit Agreement. Material amendments included the revolving period being extended 36 months, from 12 months to 48 months and the interest rate being reduced from LIBOR plus 175 basis points to LIBOR plus 140 basis points. The advance rate was increased from 67.5% to 70% and expanded to include a triple C bucket with a 60% advance rate. The structuring fee was increased from 0.25% of the Maximum Facility Amount to 0.50% of the Maximum Facility Amount and will be paid in three equal installments (December 2021, December 2022, and December 2023). Updates were made to allow for more flexibility to move capital out of the facility subject to certain covenants. Except as described above, all other terms and provisions of the Agreement remain in full force and effect.

 

On March 22, 2022, the Company amended the Credit Agreement between Steele Creek Capital Funding I, LLC, BNP Paribas, and the Company as dated October 13, 2020 and as previously amended (the “Agreement”). Material amendments to the Agreement include the interest rate being converted from LIBOR plus 140 basis points to SOFR plus 140 basis points plus 15 basis points. In addition, the Individual Lender Maximum Facility Amount increased from $80,000 thousand to $95,000 thousand and the language and requirements related to the Agreed Upon Procedures provided by independent accountants were amended to be more appropriate for the underlying collateral.

 

On August 23, 2022, the Company amended the Credit Agreement between Steele Creek Capital Funding I, LLC, BNP Paribas, and the Company as dated October 13, 2020 and as previously amended (the “Agreement”). This amendment contained certain conforming changes that are not material.

The revolving period of the BNP Credit Facility ends on October 28, 2025, unless terminated earlier by the Company. The maturity date of the BNP Credit Facility is the earliest to occur of (a) October 28, 2026, and (b) the date on which the BNP gives notice to the Company, the Collateral Manager and the Equityholder following the occurrence of and during the continuation of an Event of Default that the entire Outstanding Principal Amount of Loans shall be due and payable. The stated maturity of October 28, 2026 may not be extended.

As of June 30, 2022March 31, 2023 and December 31, 2021,2022, there was $86,300$81,900 thousand and $70,380$83,150 thousand outstanding, respectively, and $8,700$13,100 thousand and $9,620$11,850 thousand available, respectively, to be drawn under the BNP Credit Facility. As of June 30, 2022March 31, 2023 and December 31, 2021,2022, the BNP Credit Facility had a fair value of $86,300$81,900 thousand and $70,380$83,150 thousand, respectively and a weighted average interest rate of 2.32%6.14% and 1.84%3.17%, respectively. The fair value of the BNP Credit Facility is determined in accordance with ASC 820, which definesapproximates fair value in terms ofbecause the price that would be paidinterest rates adjust to transfer a liability in an orderly transaction betweenthe market participants at the measurement date under current market conditions and is measured with Level 2 inputs.interest rates (Level 3 input). As of June 30, 2022March 31, 2023 and December 31, 2021,2022, Funding I was in compliance with all covenants of the BNP Credit Facility.


For the three and six months ended June 30,March 31, 2023 and March 31, 2022, we incurred interest and debt financing expense of $499$1,302 thousand and $844$346 thousand, respectively. The average debt outstanding for the three and six months ended June 30, 2022March 31, 2023 and March 31, 2023 was $82,683$82,917 thousand and $79,494$76,270 thousand, respectively.

 

For the three and six months ended June 30, 2021, we incurred interest expense of $273 thousand and $511 thousand, respectively. The average debt outstanding for the three and six months ended June 30, 2021 was $45,000 thousand and $43,463 thousand, respectively. 

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8. COMMITMENTS AND CONTINGENCIES

 

Commitments to extend credit include loan proceeds we are obligated to advance, such as delayed draws. Commitments generally have fixed expiration dates or other termination clauses. Unrealized gains or losses associated with unfunded commitments are recorded in the consolidated financial statements and reflected as an adjustment to the fair value of the related security in the Consolidated Schedule of Investments. The par amount of the unfunded commitments is not recognized by the Company until the commitment becomes funded. As of June 30, 2022 andMarch 31, 2023, the Company had no unfunded commitments. As of December 31, 2021,2022, the Company had unfunded commitments of $383 thousand and $2,051 thousand, respectively.$74 thousand.

 

In the ordinary course of business, we may be a party to certain legal proceedings, including actions brought against us and others with respect to investment transactions. The outcomes of any such legal proceedings are uncertain and, as a result of these proceedings, the values of the investments to which they relate could decrease. We were not subject to any litigation against us as of June 30, 2022.March 31, 2023. The debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and neither the Members nor any other person or entity shall be obligated personally for any such debt, obligation or liability of the Company.

 

9. FINANCIAL HIGHLIGHTS

 

The following financial highlights are calculated for the shareholders as a whole.

 

  Six months
ended
June 30,
2022		  Six months
ended
June 30,
2021		 
Per share data:      
Net asset value at beginning of period $10.90  $10.76 
Net investment income (1)  0.29   0.06 
Net realized gain (1)  0.03   0.46 
Net change in unrealized (depreciation) appreciation (1)  (1.74)  0.02 
Net (decrease) increase in net assets resulting from operations (1)  (1.42)  0.54 
Stockholder distributions from income (2)  (0.33)  (0.33)
Issuance of common shares  -   - 
Other (3)  0.06   0.06 
Net asset value at end of period $9.21  $11.03 
         
Net assets at end of period $48,587  $41,708 
Shares outstanding at end of period  5,274,748   3,782,214 
Total return (2)  (12.90)%  5.62%
         
Ratio/Supplemental data:        
Ratio of net expenses excluding waivers and reversals to average net assets (4)  9.64%  11.64%
Ratio of net expenses including waivers and reversals to average net assets (4)  8.67%  10.24%
Ratio of net investment income to average net assets (4)  4.69%  0.74%
         
Portfolio turnover (5)  71.0%  324.9%
  Three Months
Ended
March 31,
2023		  Three Months
Ended
March 31,
2022		  Three Months
Ended
March 31,
2021		 
Per share data:         
Net asset value at beginning of period $8.93  $10.90  $10.76 
Net investment income (loss) (1)  0.21   0.14   0.02 
Net realized gain (loss) (1)  (0.07)  0.02   0.28 
Net change in unrealized appreciation  (depreciation) (1)  0.29   (0.26)  - 
Net increase in net assets resulting from operations (1)  0.43   (0.10)  0.30 
Stockholder distributions from income (2)  (0.19)  (0.17)  (0.16)
Issuance of common shares  -   -   0.01 
Other (3)  0.01   0.01   0.02 
Net asset value at end of period $9.18  $10.64  $10.93 
             
Net assets at end of period $52,394  $52,835  $29,571 
Shares outstanding at end of period  5,710,410   4,964,238   2,706,393 
Total return (2)  4.96%  (0.88)%  3.06%
             
Ratio/Supplemental data:            
Ratio of net expenses excluding waivers to average net assets (4)  15.76%  8.71%  12.00%
Ratio of net expenses including waivers to average net assets (4)  15.64%  8.29%  11.37%
Ratio of net investment income to average net assets (4)  9.75%  3.67%  1.27%
Portfolio turnover (5)  39.0%  42.6%  183.9%

 

(1)The per share data was derived by using the weighted average shares outstanding during the period.
(2)Total return is calculated as the change in net asset value (“NAV”) per share during the period, plus distributions per share, if any, divided by the beginning NAV per share. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at the quarter end NAV per share preceding the distribution. Return calculations are not annualized.
(3)Includes the impact of different amounts used in calculating per share data as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of a period end or transaction date.
(4)Ratios are annualized.
(5)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 for the periods reported. Ratio is not annualized.

36

10. SUBSEQUENT EVENTS

 

Management has evaluated subsequent events through the date of issuance of these consolidated financial statements and has determined that there are no subsequent events outside the ordinary scope of business that require adjustment to, or disclosure in, the consolidated financial statements other than those disclosed below.

 

On July 1, 2022,April 3, 2023, the Company issued and sold 61,10734,712 shares of its common stock to certain investors for an aggregate offering price of $563$318 thousand. The sale of its common stock was made pursuant to subscription agreements between the Company and the investors, and the issuance of the common stock was exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder.

 

On July 15, 2022,May 1, 2023, the Company issued and sold 73,72231,900 shares of its common stock to certain investors for an aggregate offering price of $673$297 thousand. The sale of its common stock was made pursuant to subscription agreements between the Company and the investors, and the issuance of the common stock was exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder.

 

On August 5, 2022,April 19, 2023, the Company issuedpaid approximately $1,046 thousand for the approximately 113,999 shares tendered and sold 5,651 sharesaccepted at the close of its common stock to certain investors for an aggregate offering price of $54 thousand. The sale of its common stock was made pursuant to subscription agreements betweenthe March 2023 tender offer.

Effective January 3, 2023, the Company reduced the frequency of capital closes from two per month on the first and third Friday to a single close on the investors, and the issuancefirst business day of the common stock was exempt frommonth, with a second optional monthly close at the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder.Investment Advisor’s discretion.


37

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

The following discussion and analysis 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. Except as otherwise specified, references to “we,” “us,” “our,” or the “Company” refer to MSC Capital LLC prior to the Conversion (as defined herein), and Steele Creek Capital Corporation on and after the Conversion.

 

Forward-Looking Statements

 

Some of the statements in this report constitute forward-looking statements that involve substantial known and unknown risks, uncertainties and other factors. Undue reliance should not be placed on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our company, our current and prospective portfolio investments, our industry, our beliefs and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. Our actual results could differ materially and these statements are not guarantees of future performance and are subject to risks,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:

●uncertainties associated with the coronavirus (“COVID-19”) pandemic, including the negative effect that the COVID-19 pandemic is having and is expected to have on the credit markets and the negative effect that the COVID-19 pandemic could have on our business;

●our future operating results;

●our business prospects and the prospects of our portfolio companies;

●the impact of investments that we expect to make;

●changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets;

●the ability of the Steele Creek Investment Management LLC (the “Investment Advisor”) to locate suitable investments for us and to monitor and administer our investments;

●the ability of the Investment Advisor and its affiliates to attract and retain highly talented professionals;

●risk associated with possible disruptions in our operations or the economy generally;

●the timing of cash flows, if any, from the operations of the companies in which we invest;

●the adequacy of our cash resources and working capital;

●the ability of the companies in which we invest to achieve their objectives;

●the dependence of our future success on the general economy and its effect on the industries in which we invest;

●our ability to maintain our qualification as a BDC and as a RIC under the Code;

●the use of borrowed money to finance a portion of our investments;

●the adequacy, availability and pricing of our financing sources and working capital;

38

 


●actual or potential conflicts of interest with the Investment Advisor and its affiliates;

●our contractual arrangements and relationships with third parties;

●our expected financings and investments;

●the economic downturn, interest rate volatility, loss of key personnel, and the illiquid nature of our investments; and

●the risks, uncertainties and other factors we identify under “Item 1A. Risk Factors” and elsewhere in this quarterly report on Form 10-Q.

 

We have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we may file with the U.S. Securities and Exchange Commission (“SEC”) in the future, including any annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

 

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of the assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In particular, statements herein about the effects of the COVID-19 pandemic on our business, results, financial position, and liquidity may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently estimated. In addition, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include those described or identified in the section entitled “Item 1A. Risk Factors” and elsewhere in this report. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this report. Moreover, we assume no duty and do not undertake to update the forward-looking statements.

 

Overview

 

We are a financial services company that primarily invests in syndicated corporate bank loans, bonds, other debt securities, and structured products. We are an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a BDC and intends to electhas elected to be treated for U.S. federal income tax purposes, and to qualify annually thereafter, as a RIC under the Code. We were formed on June 3, 2020 as a Delaware limited liability company under the name MSC Capital LLC. MSC Capital LLC was formed by Steele Creek Investment Management LLC, Moelis Asset and two affiliates. On October 7, 2020, MSC Capital LLC converted to a Maryland corporation (the “Conversion”), named Steele Creek Capital Corporation. On September 3, 2020, we formed a wholly-owned consolidated special purpose financing vehicle, Steele Creek Capital Funding I, LLC, a Delaware limited liability company.

 

Our investment objective is to generate high current income by investing primarily in fixed income instruments, including broadly syndicated bank loans, structured products, mezzanine financings and senior secured bonds. We provide moderate liquidity to our shareholders by offering a quarterly share repurchase program. As of June 30, 2022, noMarch 31, 2023, approximately 114 thousand shares have been tendered through the share repurchase program. Broadly syndicated loans are generally more liquid than directly originated investments and may provide more attractive financing terms than less liquid assets. Mezzanine financings are generally unrated or below investment grade rated investments that have greater credit and liquidity risk than more highly rated debt obligations. Moreover, mezzanine financings are generally unsecured and subordinate to other obligations of the obligor and are subject to many of the same risks as those associated with high-yield debt securities.


39

Revenues

 

We generate revenue primarily in the form of interest and fee income on debt investments we hold and capital gains, if any, on investments. We generally expect our debt investments to bear interest at a floating rate usually determined on the basis of a benchmark such as LIBOR or SOFR. Interest on debt securities is generally payable monthly, quarterly or semi-annually. In some instances, we expect to receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we may receive repayments of some of our debt investments prior to their scheduled maturity date. The frequency or volume of these repayments is expected to fluctuate significantly from period to period.  Our portfolio activity is also expected to reflect the proceeds of sales of securities. We may also generate revenue in the form of commitment, origination, amendment, structuring or due diligence fees, fees for providing managerial assistance and consulting fees.

Expenses

Our primary operating expenses include the payment of fees to our Investment Advisor under the Investment Advisory Agreement, our allocable portion of overhead and rental expenses under the Administration Agreement and other operating costs described below. We bear all other out-of-pocket costs and expenses of our operations and transactions, including:

●our initial organization costs incurred prior to the commencement of our operations;

●operating costs incurred prior to the commencement of our operations;

●the cost of calculating our net asset value, including the cost of any third-party valuation services;

●the cost of effecting sales and repurchases of shares of our common stock and other securities, including in connection with the Private Offering;

●distribution and shareholder servicing fees payable to our dealer manager and financial intermediaries;

●fees payable to third parties relating to making investments, including our Investment Advisor’s or its affiliates’ travel expenses, research costs and out-of-pocket fees and expenses associated with performing due diligence and reviews of prospective investments;

●interest expense and other costs associated with our indebtedness;

●transfer agent and custodial fees;

●out-of-pocket fees and expenses associated with marketing efforts;

●federal and state registration fees and any stock exchange listing fees;

●U.S. federal, state and local taxes;

●Independent Directors’ fees and expenses;

●brokerage commissions and markups;

●fidelity bond, directors’ and officers’ liability insurance and other insurance premiums;

●direct costs, such as printing, mailing, long distance telephone and staff;

●fees and expenses associated with independent audits and outside legal costs;

●costs associated with our reporting and compliance obligations under the 1940 Act and other applicable U.S. federal and state securities laws; and

●other expenses incurred by the Administrator or us in connection with administering our business, including payments under the Administration Agreement that will be based upon our allocable portion (subject to the review and approval of our Board) of overhead, including rental expenses

From time to time, the Administrator or its affiliates may pay third-party providers of goods or services. We will reimburse the Administrator or such affiliates thereof for any such amounts paid on our behalf under the Administration Agreement. All of the foregoing expenses will ultimately be borne by our stockholders.

 

40

Our Investment Advisor is authorized to determine the broker to be used for each portfolio transaction. In selecting brokers to execute transactions, the Investment Advisor need not solicit competitive bids and does not have an obligation to seek the lowest available commission cost. In selecting brokers, the Investment Advisor may or may not negotiate “execution only” commission rates and thus we may be deemed to be paying for other services provided by the broker that are included in the commission rate. In negotiating commission rates, the Investment Advisor will take into account the financial stability and reputation of the broker and the brokerage, research and other services provided to us, the Investment Advisor and other customers of the Investment Advisor and its affiliates by such broker, even though we may not, in any particular instance, be the direct or indirect beneficiaries of the research or other services provided and the management fee payable to the Investment Advisor is not reduced because it receives such services. In addition, the Investment Advisor may direct commissions to certain brokers that on the foregoing basis may furnish other services to us, the Investment Advisor and other customers of the Investment Advisor and its affiliates, such as telephone lines, news and quotation equipment, electronic office equipment, account record keeping and clerical services, trading software, financial publications and economic consulting services. As a result of the brokerage practices described above, the levels of commission paid, and prices paid or received by us in portfolio transactions may be less favorable than in portfolio transactions effected on a best price and execution basis.

 

Compensation Paid to the Dealer Manager and Participating Financial Intermediaries

 

The Company has engaged S2K Financial LLC as dealer manager to assist with the placement of the Company’s shares (“Dealer Manager”). Investors will pay a maximum upfront sales load of up to 5.5% of the Company’s net asset value per share for combined upfront selling commissions and dealer manager fees. Investors will pay a maximum upfront selling commission of 3.0% and a maximum dealer manager fee of 2.5%. The purchase price paid by an investor will be the Company’s net asset value per share plus all upfront selling commissions and dealer manager fees. All or a portion of selling commissions and dealer manager fees may be reduced or eliminated in connection with certain categories of sales such as, without limitation, sales through investment advisers or sales to our affiliates.

 

The Company will pay to the Dealer Manager a shareholder servicing fee (“Shareholder Servicing Fee”) at a maximum annual rate equal to 0.0% of the Company’s net assets up to $28.2 million$28,200 thousand and of 1.0% of the Company’s net assets over $28.2 million.$28,200 thousand. The Shareholder Servicing Fee will be payable on a monthly basis. With respect to each share sold, the Shareholder Servicing Fee will be paid until the third anniversary of the applicable month of purchase. All or a portion of which may be reallowed by the Dealer Manager to participating Financial Intermediaries. The purpose of the Shareholder Servicing Fee is to reimburse our Dealer Manager for costs incurred by selected Financial Intermediaries and investment representatives for providing ongoing shareholder services. The Shareholder Servicing Fee is paid pursuant to a Servicing Plan adopted by the Board, including a majority of the Independent Directors and who have no direct or indirect financial interest in the operation of the Servicing Plan or in any agreements entered into in connection therewith. The Servicing Plan will remain in effect for so long as such continuance is reapproved annually by the Board.

 

The Investment Advisor or its affiliates, in Investment Advisor’s discretion and from their own resources, will pay additional compensation to our Dealer Manager in connection with the sale and servicing of shares (“Additional Compensation”). In return for the Additional Compensation, the Company may receive certain marketing advantages. Our Dealer Manager may reallow all or a portion of the Additional Compensation to participating Financial Intermediaries. The Additional Compensation will not be paid by our shareholders.


Current Market Conditions

 

The rally in risk assets at the start of 2023 was also experienced in the syndicated loan market was not immunefor the first couple of months, allowing issuers to access the volatility witnessed across asset classes during the second quarter, driven by concerns regarding inflation, slowing economic growth,market for refinancings and supply-chain disruptions.  Loan new issuance slowed significantly, at roughly half of Q1’s total volume and has led to a sizable calendarlesser extent M&A and dividend recapitalizations.  However, the month of underwritten loans held by arranging banksMarch brought banking sector turmoil and concerns of contagion that are waiting to be syndicated.  Retailweighed heavily on bank loan mutual funds reported a $2.6 billion net outflow, whileprices and curtailed the institutional CLO market was rather resilient with $12.7 billionflow of new issuance for the quarter.issue activity.   The Credit Suisse Leveraged Loan Index returned -4.35% forended the quarter and theup 3.11% with an average bid price declined 542 basis pointsof 92.67, up from 91.89 at year end.  Loan downgrades by the rating agencies continued to 91.96.  The U.S. institutional leveraged loanoutpace upgrades and default activity accelerated, driving the trailing twelve-month default rate rose to 0.9% at quarter end,2.2%, up from 0.6%1.6% at the end of 2022 according to Fitch.Fitch Ratings.

 

COVID-19 Developments

41

 

The rapid, worldwide spread of a novel strain of coronavirus (“COVID-19”) has continued global economic disruption and uncertainty. The impact of the COVID-19 outbreak has affected the global economy, the economies of individual countries, and the financial performance of individual issuers, sectors, industries, asset classes, and markets in significant and unforeseen ways. The COVID-19 pandemic and its effects may last for an extended period of time, and in either case could result in significant market volatility, exchange trading suspensions and closures, declines in global financial markets, higher default rates, and a substantial economic downturn or recession. The foregoing could disrupt the operations of the Company and its service providers, adversely affect the value and liquidity of the Company’s investments, and negatively impact the Company’s performance and your investment in the Company. 

 

Portfolio and Investment Activity

 

As of June 30, 2022,March 31, 2023, our portfolio had a fair market value of approximately $131,581$128,455 thousand, a cost basis of approximately $139,722$136,253, thousand and was comprised of leveraged loans and equity securities, measured at fair value. Our loan portfolio consisted of 160167 investments in 2524 industries and in 24 domiciled countries. The following table depicts a summary of the portfolio as of June 30, 2022March 31, 2023 (in thousands):

 

  Investments 
Cost $139,722 
Cumulative Net Unrealized Depreciation  (8,141)
Fair Value $131,581 
Yield at Cost  6.21%
  Investments 
Cost $136,253 
Cumulative Net Unrealized Depreciation  (7,798)
Fair Value $128,455 
Yield at Cost  9.07%

 

As of December 31, 2021,2022, our portfolio had a fair market value of approximately $106,997$127,619 thousand, a cost basis of approximately $106,443$137,084 thousand and was comprised of leveraged loans, measured at fair value. Our loan portfolio consisted of 130164 investments in 25 industries and in 25 domiciled countries. The following table depicts a summary of the portfolio as of December 31, 20212022 (in thousands):

 

 Investments  Investments 
Cost $106,443  $137,084 
Cumulative Net Unrealized Appreciation  554 
Cumulative Net Unrealized Depreciation  (9,465)
Fair Value $106,997  $127,619 
Yield at Cost  4.90%  8.65%

As of June 30, 2022,March 31, 2023, 100% of the term loan investments in the portfolio  bore interest at floating rates, with 83.1%82.9% of our loan portfolio (at fair value) and 83.0%82.7% of our loan portfolio (at cost) having an interest rate floor above 0.0%. The composition of our floating rate loan portfolio byRecent interest rate floorincrease announced in the United States have driven the LIBOR and SOFR base rates above the floors in effect as of June 30, 2022, was as follows (in thousands): quarter end. Base rates on 100% of the portfolio exceed the stated floors.

 

  June 30, 2022 
Interest Rate Floor Fair Value  % of Floating
Rate Portfolio		  Cost  % of Floating
Rate Portfolio		 
0.00% $22,252   16.91% $23,742   16.99%
0.50%  51,369   39.04%  54,672   39.13%
0.75%  37,512   28.51%  39,479   28.26%
1.00%  20,448   15.54%  21,829   15.62%
  $131,581   100.00% $139,722   100.00%

As of December 31, 2021,2022, 100.0% of the investments in the portfolio bore interest at floating rates, with 80.8%83.9% of our loan portfolio (at fair value) and 80.8%83.4% of our loan portfolio (at cost) having an interest rate floor above 0.0%. The composition of our floating rate loan portfolio byRecent interest rate floorincrease announced in the United States have driven the LIBOR and SOFR base rates above the floors in effect as of December 31, 2021 was as follows (in thousands):quarter end. Base rates on 100% of the portfolio exceed the stated floors.

 

  December 31, 2021 
Interest Rate Floor Fair Value  % of Floating
Rate Portfolio		  Cost  % of Floating
Rate Portfolio		 
0.00% $20,539   19.20% $20,465   19.23%
0.50%  29,680   27.74%  29,515   27.73%
0.75%�� 36,763   34.35%  36,468   34.26%
1.00%  20,015   18.71%  19,995   18.78%
  $106,997   100.00% $106,443   100.00%

The portfolio is actively managed, with a turnover ratio of 71.0%39.0% and 42.6% for the sixthree months ended June 30,March 31, 2023 and March 31, 2022, ourrespectively. Our loan portfolio rotation was reflective of the active management style, which seeks to optimize the portfolio based on current market conditions by rotating into positions that have better relative values. Our level of turnover is due to the ramping of the portfolio and fundraising. This high level does provide an indication of the liquidity in our portfolio and the leverage loan market. The annualized average yield  as of June 30,March 31, 2023 and March 31, 2022 on the investment was 6.60%.9.62% and 4.99%, respectively. The following tables depict the portfolio activity (in thousands):

 

  Three months
ended
June 30,
2022		  Six months
ended
June 30,
2022		 
Fair Value, Beginning $128,455  $106,997 
Purchases  47,156   119,872 
Sales and Repayments  (36,705)  (86,862)
Non-cash income accrual  46   104 
Net realized gains  59   166 
Net unrealized (depreciation) appreciation  (7,430)  (8,696)
Fair Value, Ending $131,581  $131,581 
  Three months
ended
March 31,
2023		  Three months
ended
March 31,
2022		 
Fair Value, Beginning $127,619  $106,997 
Purchases  49,931   72,716 
Sales and Repayments  (50,480)  (50,157)
Payment in-kind interest income  18   - 
Non-cash income accrual  119   57 
Net realized (loss) gains  (418)  107 
Net unrealized depreciation (appreciation)  1,666   (1,265)
Fair Value, Ending $128,455  $128,455 

 

  Three months
ended
June 30,
2021		  Six months
ended
June 30,
2021		 
Fair Value, Beginning $71,106  $67,811 
Purchases  182,071   312,303 
Sales and Repayments  (142,876)  (270,591)
Payment in-kind interest income  3   4 
Non-cash income accrual  32   78 
Net realized gains  597   1,325 
Net unrealized (depreciation) appreciation  37   40 
Fair Value, Ending $110,970  $110,970 

 Three months
ended
June,
2022		  Six months
ended
June 30,
2022		  Three months
ended
March 31, 2023		  Three months
ended
March 31, 2022		 
Investments, Beginning  151   130   164   130 
Purchases (new)  35   80   42   45 
Complete exit  (26)  (50)  (39)  (24)
Investments, Ending  160   160   167   151 

 

  Three months
ended
June,
2021		  Six months
ended
June 30,
2021		 
Investments, Beginning  89   84 
Purchases (new)  133   227 
Complete exit  (85)  (174)
Investments, Ending  137   137 

42

 

The portfolio was diversified across both issuers and industries with the average investment exposure in our loan portfolio of $822$825 thousand at fair value, or 0.6% of the total portfolio, as of the three months ended June 30, 2022.March 31, 2023. The following table shows the loan portfolio composition by industry grouping at fair value as a percentage of the total loansportfolio as of June 30, 2022:March 31, 2023:

 

Industry

 As of
June 30,
2022
March 31,
2023		 
Healthcare & Pharmaceuticals  13.1%
Services: Business12.915.1%
Banking, Finance, Insurance & Real Estate  11.413.4%
High Tech IndustriesServices: Business  10.710.8%
Telecommunications  8.1%
High Tech Industries6.3%
Aerospace & Defense  5.35.4%
Automotive4.1%
Capital Equipment3.8%
Hotel, Gaming & Leisure3.7%
Retail3.2%
Transportation: Cargo  4.23.0%
Construction & Building2.9%
Consumer goods: Durable2.8%
Energy: Oil & Gas  3.72.6%
Hotel, Gaming & LeisureTransportation: Consumer  3.52.6%
Chemicals, Plastics, & Rubber2.5%
Containers, Packaging & Glass  3.5%
Capital Equipment3.4%
Retail2.8%
Automotive2.4%
Consumer goods: Durable2.3%
Construction & Building2.3%
Chemicals, Plastics & Rubber2.1%
Media: Advertising, Printing & Publishing  1.5%
Services: Consumer1.4%
Energy: Electricity  1.4%
Transportation: Consumer1.2%
Media: Broadcasting & Subscription  0.91.3%
Services: Consumer1.2%
Consumer Goods:goods: Non-durable  0.70.8%
Forest Products & Paper  0.7%
Utilities: Electric  0.4%
Utilities: Oil & Gas0.1%
   100.0%

The portfolio was diversified across both issuers and industries with the average investment exposure in our loan portfolio of $823$778 thousand at fair value, or 0.8%0.6% of the total portfolio, as of December 31, 2021.2022. The following table shows the loan portfolio composition by industry grouping at fair value as a percentage of the total loansportfolio as of December 31, 2021:2022:

 

Industry As of

December 31,
2021
2022		 
Healthcare & Pharmaceuticals  16.414.3%
Services: Business11.4%
Telecommunications10.6%
High Tech Industries10.6%
Banking, Finance, Insurance & Real Estate  7.612.4%
Aerospace & DefenseServices: Business  6.411.8%
Transportation: CargoHigh Tech Industries  4.98.6%
Energy: Oil & GasTelecommunications  4.87.3%
Capital EquipmentAerospace & Defense  4.45.1%
RetailHotel, Gaming & Leisure  3.74.3%
Hotel, Gaming & LeisureCapital Equipment  2.73.8%
AutomotiveTransportation: Cargo  1.93.7%
Containers, Packaging & Glass  1.83.5%
Energy: ElectricityRetail  1.82.9%
Services: ConsumerAutomotive  1.82.9%
ConstructionEnergy: Oil & BuildingGas  1.82.6%
Transportation: Consumer goods: Durable  1.32.6%
Construction & Building2.4%
Chemicals, Plastics, & Rubber2.2%
Consumer goods: Durable2.1%
Media: Advertising, Printing & Publishing  1.31.5%
Chemicals, Plastics, & RubberEnergy: Electricity  1.21.4%
Forest Products & PaperConsumer goods: Non-durable  0.91.4%
Services: Consumer goods: Non-durable  0.71.1%
Media: Broadcasting & Subscription  0.50.9%
Transportation: ConsumerForest Products & Paper  0.50.7%
Utilities: Electric  0.50.4%
MetalsUtilities: Oil & MiningGas  0.50.1%
   100.0%

43

Results of Operations

 

Operating results were as follows (in thousands):

  

  Three months
ended
June 30,
2022		  Six months
ended
June 30,
2022		 
Investment income:      
Interest income $1,805  $3,276 
Total investment income  1,805   3,276 
         
Expenses:        
Management fees  414   845 
Interest and debt financing expenses  499   844 
Professional fees  79   157 
Incentive fees  -   (110)
Administration expenses  55   103 
Directors’ fees  20   40 
Custody fees  8   15 
Other general and administrative expenses  245   414 
Total expenses  1,320   2,308 
Less: management fees waived  (271)  (481)
Net expenses  1,049   1,827 
Net investment income  756   1,449 
Net realized gain on investments  59   166 
Net unrealized (depreciation) appreciation on investments  (7,430)  (8,696)
Net realized and unrealized (loss) gain on investments  (7,371)  (8,530)
Net (decrease) increase in net assets $(6,615) $(7,081)

  For the
Three months
ended
March 31, 2023		  For the
Three months
ended
March 31, 2022		 
Investment income:      
Interest income $3,217  $1,471 
Total investment income  3,217   1,471 
         
Expenses:        
Management fees  372   431 
Interest and debt financing expenses  1,302   346 
Professional fees  95   78 
Incentive fees  76   (110)
Administration expenses  58   48 
Directors’ fees  20   20 
Custody fees  12   7 
Other general and administrative expenses  119   169 
Total expenses  2,054   989 
Less: management fees waived  (52)  (210)
Less: incentive fee waived  (8)  - 
Net expenses  1,994   779 
Net investment income  1,223   692 
Net realized (loss) gain on investments  (418)  107 
Net unrealized appreciation (depreciation) on investments  1,666   (1,265)
Net realized and unrealized gain (loss) on investments  1,248   (1,158)
Net increase (decrease) in net assets $2,471  $(466)

 

  Three months
ended
June 30,
2021		  Six months
ended
June 30,
2021		 
Investment income:      
Interest income $899  $1,793 
Other income  6   15 
Total investment income  905   1,808 
         
Expenses:        
Management fees  451   740 
Interest and debt financing expenses  273   511 
Professional fees  139   298 
Incentive fees  95   205 
Offering costs – paid by Moelis Asset  39   99 
Administration expenses  37   75 
Organization costs  -   36 
Organizational costs – paid by Moelis Asset  -   24 
Directors’ fees  22   42 
Custody fees  8   15 
Other general and administrative expenses  6   55 
Total expenses  1,070   2,100 
Less: management fees waived  (216)  (331)
Less: incentive fee waived  (70)  (135)
Net expenses  784   1,634 
Net investment income  121   174 
Net realized gain on investments  597   1,325 
Net unrealized (depreciation) appreciation on investments  37   40 
Net realized and unrealized (loss) gain on investments  634   1,365 
Net (decrease) increase in net assets $755  $1,539 

44

Investment Income

 

Investment income is recorded on the accrual basis to the extent that such amounts are expected to be collected. Where applicable, OID and purchased discounts and premiums are accreted into interest income using the effective interest method. Loan origination fees are deferred and accreted into interest income using the effective interest method. We record prepayment premiums on loans and other investments as interest income when such amounts are received. Investment income for the three and six months ended June 30,March 31, 2023 and March 31, 2022 was approximately $1,805$3,217 thousand and $3,276$1,471 thousand, respectively.Investment income for the three and six months ended June 30, 2021 are approximately $905 thousand and $1,808 thousand, respectively.

 

Total Expenses

 

Total expenses for the three and six months ended June 30,March 31, 2023 and March 31, 2022 of approximately $1,320$2,054 thousand and $2,308$989 thousand, respectively, include management, incentive, audit and tax preparation fees, organizational costs, offering costs, interest and debt financing costs, directors’ fees, administration expenses and other general and administrative expenses. Total expenses for the three and six months ended June 30, 2021 were approximately $1,070 thousand and $2,100 thousand, respectively. Expenses are recognized on an accrual basis. Moelis Asset, parent of the Investment Advisor paid no organizational and offering costs incurred by the Company related to the formation of the entity for the three and six months ended June 30, 2022. For the three and six months ended June 30, 2021 Moelis Asset paid approximately $39 thousand and $123 thousand of organizational and offering costs incurred by the Company related to the formation of the entity, respectively, Moelis Asset will incur these expenses and they will not be charged back to the Company.  

 

For the three and six months ended June 30, 2022,March 31, 2023, the Investment Advisor waived $271 thousand and $481$52 thousand of management fees and $8 thousand of income incentive fees. The actions taken by Moelis Asset and the Investment Advisor effectively reduced total expenses incurred by the Company for the three and six months ended June 30, 2022March 31, 2023 of approximately $1,320$2,054 thousand to approximately $1,049 thousand and approximately $2,308 thousand to approximately $1,827 thousand, respectively.$1,994 thousand.

 

For the three and six months ended June 20, 2021,March 31, 2022, the Investment Advisor waived $216 thousand and $331 thousand of management fees and $70 thousand and $135 thousand of incentive fees, respectively.$210 thousand. The actions taken by Moelis Asset and the Investment Advisor effectively reduced total expenses incurred by the Company for the three and six months ended June 30, 2021March 31, 2022 of approximately $1,070$989 thousand to $784 thousand and $2,100 thousand to $1,634 thousand, respectively.approximately $779 thousand.

 

Net Realized Gain on Investments

 

Sales and repayments of investments during the three and six months ended June 30, 2022March 31, 2023 totaled approximately $36,705$50,480 thousand, and $86,862 thousand, respectively, resulting in net realized gainsloss of approximately $59 thousand and $166 thousand, respectively.$418 thousand.

 

Sales and repayments of investments during the three and six months ended June 30, 2021March 31, 2022 totaled approximately $142,876 thousand and $270,591$50,157 thousand, resulting in net realized gainsgain of approximately $597 thousand and $1,325 thousand, respectively. $107 thousand.

 

Net Unrealized Appreciation or Depreciation on Investments

 

Unrealized depreciationappreciation during the three and six months ended June 30, 2022March 31, 2023 totaled approximately $7,430$1,666 thousand and $8,696 thousand, respectively, reflects the changes in fair value of investments as determined in compliance with the Investment Advisor’s valuation policy. The unrealized appreciation

Unrealized depreciation during the three and six months ended June 30, 2021 thatMarch 31, 2022 totaled approximately $37$1,265 thousand and $40 thousand, respectively, reflects the changes in fair value of investments as determined in compliance with the Investment Advisor’s valuation policy.

35

45

 

 

Taxes

 

We elected to be treated, and intend to qualify annually to maintain our election to be treated, as a RIC under Subchapter M of the Code. To maintain our RIC tax election, we must, among other requirements, meet certain annual source-of-income and quarterly asset diversification requirements. We also must annually distribute dividends for U.S. federal income tax purposes to our stockholders out of the assets legally available for distribution of an amount generally at least equal to 90% of the sum of our net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, or investment company taxable income, determined without regard to any deduction for dividends paid.

 

Although not required for us to maintain our RIC tax status, in order to avoid the imposition of a 4% nondeductible federal excise tax imposed on RICs, we must distribute dividends for U.S. federal income tax purposes to our stockholders in respect of each calendar year of an amount at least equal to the Excise taxTax Avoidance  Requirement.

 

Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and net realized gain recognized for financial reporting purposes. Differences between tax regulations and GAAP may be permanent or temporary. Permanent differences are reclassified among capital accounts in the Consolidated Financial Statements to reflect their appropriate tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

 

We have formed and expect to continue to form certain taxable subsidiaries, including the Taxable Subsidiary, which are taxed as corporations. These taxable subsidiaries allow us to hold equity securities of certain portfolio companies treated as pass-through entities for U.S. federal income tax purposes while facilitating our ability to qualify as a RIC under the Code.

 

Financial Condition, Liquidity and Capital Resources

 

We generate cash primarily from the net proceeds of any offering of shares of our common stock and from cash flows from interest and fees earned from our investments and principal repayments and proceeds from sales of our investments. We may also fund a portion of our investments through borrowings from banks and issuances of senior securities, including before we have fully invested the proceeds of the Private Offering. Our primary use of cash is investments in portfolio companies, payments of our expenses and payment of cash distributions to our stockholders.

 

Capital Contributions

 

For the three and six months ended June 30,March 31, 2023, the Company issued and sold 67,337 of Common Stock with a par value of $0.001 per share for an aggregate offering price of $615 thousand. For the three months ended March 31, 2022, the Company issued and sold 310,510 shares and 963,427652,917 shares of Common Stock with a par value of $0.001 per share for an aggregate offering price of $3,182 thousand and $10,290 thousand, respectively. For the three and six months ended June 30, 2021, the Company issued and sold 1,075,820 shares and 1,148,986 shares of Common Stock with a par value of $0.001 per share for an aggregate offering price of $11,808 thousand and $12,608 thousand, respectively.$7,108 thousand. The sale of its common stock was made pursuant to subscription agreements between the Company and the investors, and the issuance of the common stock was exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder.

 

Our shares of common stock constitute illiquid investments for which there is not, and will likely not be, a secondary market at any time prior to a public offering and listing of our shares on a national securities exchange. There can be no guarantee that we will conduct a public offering and list our shares on a national securities exchange. Investment in the Company is suitable only for sophisticated investors and requires the financial ability and willingness to be exposed to higher liquidity risk than would be the case were the securities publicly listed and actively traded.


46

We provide moderate liquidity to our shareholders by offering a quarterly share repurchase program. As of June 30, 2022, noMarch 31, 2023, approximately 114 thousand shares have been tendered through the share repurchase program.

 

As of August 15, 2022,March 31, 2023, the Company issued 5,415,2285,710,410 shares of Common Stock.

 

Borrowings

 

October 13, 2020, we entered into a two-year secured revolving Credit Agreement (the “Credit Agreement”) with BNP Paribas (“BNP”) as lender and administrative agent (the “BNP Credit Facility”) providing a maximum of $45.0 million (“Maximum Facility Amount”) to Steele Creek Capital Funding I, LLC (“Funding I”). The Company created a wholly owned subsidiary, Funding I, which it will use to hold the Company’s investments, and a first priority continuing security interest in, to and under each investment, all underlying investments and underlying assets has been granted to BNP to be used as collateral for the BNP Credit Facility. During the BNP Credit Facility’s revolving period, it bears interest at LIBOR plus 175 basis points. We believe that our capital resources will provide us with the flexibility to take advantage of market opportunities when they arise. For the three and six months ended June 30,March 31, 2023 and March 31, 2022, we had an average of $82,683$82,917 thousand and $79,494$76,270 thousand outstanding under the BNP Credit Facility, respectively. For the three and six months ended June 30, 2021, we had an average of $45,000 thousand and $43,463 thousand outstanding under the BNP Credit Facility.

 

Funding I is required to pay an administrative agent fee equal to $25 thousand per annum and a structuring fee equal to 0.25% of the Maximum Facility Amount paid on the twelve month anniversary of the closing date. Additionally, an unused fee is payable quarterly in arrears in an amount equal to 0.70% on the actual daily unused amount greater than 20% of the Maximum Facility Amount under the BNP Credit Facility from April 13, 2021 to the end of the revolving period.

 

On April 29, 2021, Funding I executed an amendment to the BNP Credit Facility. The amendment solidified the LIBOR transition to Secured Overnight Financing Rate (“SOFR”) for the planned discontinuation of LIBOR. The amendment also increased the Individual Lender Maximum Facility Amount from $45,000 thousand to $80,000 thousand. 

 

On October 28, 2021, the Company executed an additional amendment to the Credit Agreement. Material amendments included at this time include the revolving period being extended 36 months, from 12 months to 48 months and the interest rate being reduced from LIBOR plus 175 basis points to LIBOR plus 140 basis points. The advance rate was increased from 67.5% to 70% and expanded to include a triple C bucket with a 60% advance rate. The structuring fee was increased from 0.25% of the Maximum Facility Amount to 0.50% of the Maximum Facility Amount and will be paid in three equal installments (December 2021, December 2022, and December 2023). Updates were made to allow for more flexibility to move capital out of the facility subject to certain covenants. Except as described above, all other terms and provisions of the Agreement remain in full force and effect.

 

On March 22, 2022, the Company amended the Credit Agreement between Steele Creek Capital Funding I, LLC, BNP Paribas, and the Company as dated October 13, 2020 and as previously amended (the “Agreement”). Material amendments to the Agreement include the interest rate being converted from LIBOR plus 140 basis points to SOFR plus 140 basis points plus 15 basis points. In addition, the Individual Lender Maximum Facility Amount increased from $80,000 thousand to $95,000 thousand and the language and requirements related to the Agreed Upon Procedures provided by independent accountants were amended to be more appropriate for the underlying collateral.

 

On August 23, 2022, the Company amended the Credit Agreement between Steele Creek Capital Funding I, LLC, BNP Paribas, and the Company as dated October 13, 2020 and as previously amended (the “Agreement”). This amendment contained certain conforming changes that are not material.

47

The revolving period of the BNP Credit Facility ends on October 28, 2025, unless terminated earlier by the Company. The maturity date of the BNP Credit Facility is the earliest to occur of (a) October 28, 2026, and (b) the date on which the BNP gives notice to the Company, the Collateral Manager and the Equityholder following the occurrence of and during the continuation of an Event of Default that the entire Outstanding Principal Amount of Loans shall be due and payable. The stated maturity of October 28, 2026 may not be extended.

Distribution Policy

 

To the extent that we have income available, we intend to distribute quarterly dividends to our stockholders. Our quarterly dividends, if any, will be determined by our Board. Any dividends to our stockholders will be declared out of assets legally available for distribution.

 

We intend for the Company to elect to be treated, and intend to qualify annually thereafter, as a RIC under the Code. To obtain and maintain RIC tax treatment, among other things, we must distribute dividends to our stockholders in respect of each taxable year of an amount at least equal to 90% of the sum of our net ordinary income and net short-term capital gains in excess of our net long-term capital losses (“investment company taxable income”), determined without regard to any deduction for dividends paid. In order to avoid certain excise taxes imposed on RICs, we currently intend to distribute dividends to our stockholders in respect of each calendar year of an amount at least equal to the sum of: (1) 98% of our net ordinary income (taking into account certain deferrals and elections) for such calendar year; (2) 98.2% of our capital gains in excess of capital losses (“capital gain net income”), adjusted for certain ordinary losses, generally for the one-year period ending on October 31 of such calendar year; and (3) any net ordinary income and capital gain net income for preceding years that were not distributed during such years and on which we previously paid no U.S. federal income tax.

 

We currently intend to distribute net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually out of the assets legally available for such distributions. However, we may decide in the future to retain such capital gains for investment, incur a corporate-level tax on such capital gains, and elect to treat such capital gains as deemed distributions to you. If this happens, you will be treated for U.S. federal income tax purposes as if you had received an actual distribution of the capital gains that we retain and reinvested the net after tax proceeds in us. In this situation, you would be eligible to claim a tax credit equal to your allocable share of the tax we paid on the capital gains deemed distributed to you. We cannot assure you that we will achieve results that will permit us to pay any cash distributions, and if we issue senior securities, we will be prohibited from making distributions if doing so would cause us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or if such distributions are limited by the terms of any of our borrowings.


48

Asset Coverage

 

In accordance with the 1940 Act, the Company has historically only been allowed to borrow amounts such that its “asset coverage,” as defined in the 1940 Act, is at least 200% after such borrowing, permitting the Company to borrow up to one dollar for investment purposes for every one dollar of investor equity. “Asset coverage” generally refers to a company’s total assets, less all liabilities and indebtedness not represented by “senior securities,” as defined in the 1940 Act, divided by total senior securities representing indebtedness and, if applicable, preferred stock. “Senior securities” for this purpose includes borrowings from banks or other lenders, debt securities and preferred stock.

 

On March 23, 2018, the SBCAA was signed into law. The SBCAA, among other things, modifies the applicable provisions of the 1940 Act to reduce the required asset coverage ratio applicable to BDCs from 200% to 150% subject to certain approval, time and disclosure requirements (including either stockholder approval or approval of a majority of the directors who are not interested persons of the BDC and who have no financial interest in the proposal). On October 5, 2020, the Board and the Members of MSC Capital LLC voted to approve the adoption of the reduced asset coverage ratio.

 

As of June 30, 2022March 31, 2023 and December 31, 2021,2022, the Company had total senior securities of $86,300$81,900 thousand and $70,380$83,150 thousand, respectively, consisting of borrowings under the Credit Facility, and had asset coverage ratios of 156.3%164.0% and 166.8%160.6%, respectively. For a discussion of certain risks associated with the reduction of the required minimum asset coverage ratio applicable to the Company, see “Risk Factors — Risks Related to Our Business and Structure — The SBCAA allows us to incur additional leverage, which may increase the risk of investing with us.”

 

Critical Accounting Policies

 

Valuation Procedures

 

Under procedures established by our Board and in accordance with the 1940 Act, we value investments for which market quotations are readily available at such market quotations. Assets listed on an exchange will be valued at their last sales prices as reported to the consolidated quotation service at 4:00 P.M. eastern time on the date of determination. If no such sales of such securities occurred, such securities will be valued at the mean between the last available bid and ask prices as reported by an independent, third party pricing service on the date of determination. Debt and equity securities that are not publicly traded or whose market prices are not readily available will be valued at fair value, subject at all times to the oversight and approval of our Board. Such determination of fair values may involve subjective judgments and estimates, although we will also engage independent valuation providers to review the valuation of each portfolio investment that constitutes a material portion of our portfolio and that does not have a readily available market quotation at least once annually. With respect to unquoted securities, our Investment Advisor, together with our independent valuation advisors, and subject at all times to the oversight and approval of our Board, will value each investment considering, among other measures, discounted cash flow models, comparisons of financial ratios of peer companies that are public and other factors. We intend to retain one or more independent providers of financial advisory services to assist the Investment Advisor and the Board by performing certain limited third-party valuation services. We may appoint additional or different third-party valuation firms in the future.

 

When an external event such as a purchase transaction, public offering or subsequent equity sale occurs with respect to a fair-valued portfolio company or comparable company, our Board will use the pricing indicated by the external event to corroborate and/or assist us in our valuation. Because we expect that there will not be a readily available market for many of the investments in our portfolio, we expect to value many of our portfolio investments at fair value as determined in good faith by our Board using a documented valuation policy and a consistently applied valuation process. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had readily available market quotations existed for such investments, and the differences could be material.

 

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820 – Fair Value Measurements and Disclosures (“ASC Topic 820”)820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. ASC Topic 820 also provides guidance regarding a fair value hierarchy, which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level of information used in the valuation. In accordance with ASC Topic 820, these inputs are summarized in the three levels listed below.

 

Level 1 – Valuations are based on quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

 

Level 2 – Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly and model-based valuation techniques for which all significant inputs are observable.

 

Level 3 – Valuations are based on inputs that are unobservable and significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models incorporating significant unobservable inputs, such as discounted cash flow models and other similar valuations techniques. The valuation of Level 3 assets and liabilities generally requires significant management judgment due to the inability to observe inputs to valuation.


49

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of observable input that is significant to the fair value measurement. Our assessmentassessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and it considers factors specific to the investment.

With respect to investments for which market quotations are not readily available, our Investment Advisor will undertake a multi-step valuation process each quarter, as described below:

●Investments for which no such market prices are available or reliable will be preliminarily valued at such value as the Investment Advisor may reasonably determine, which may include third party valuations;

●The audit committee of our Board (the “Audit Committee”) will then review these preliminary valuations;

●At least once annually, the valuation for each portfolio investment that constitutes a material portion of our portfolio and that does not have a readily available market quotation will be reviewed by an independent valuation firm; and

●Our BoardInvestment Advisor will then discuss valuations and determine the fair value of each investment in our portfolio in good faith, based on the input of our Investment Advisor, the respective independent valuation firms and the Audit Committee.firms.

  

Investment Transactions, Realized/Unrealized Gains or Losses, and Income Recognition

 

Investment transactions are recorded on a trade date basis (for publicly-traded investments and securities traded through dealer markets) or upon closing of the transaction (for private investments). The cost of an investment includes all costs incurred by the Company as part of the purchase of such investment. The difference between the initially recognized cost and the subsequent fair value measurement of an investment is reflected as “net change in unrealized appreciation on non-controlled/non-affiliate company investments” on the Consolidated Statements of Operations.

 

Realized gain or loss from an investment is recorded at the time of disposition and calculated using the weighted average cost method. Unrealized gain or loss reflects the changes in fair value of investments as determined in compliance with the Investment Advisor’s valuation policy.

 

Interest income, adjusted for amortization of market premium and accretion of market discount, is recorded on an accrual basis to the extent that we expect to collect such amounts. Interest income on debt instruments is accrued and recognized for those issuers who are currently paying in full or expected to pay in full. For those issuers who are in default or expected to default, interest is not accrued and is only recognized when received. Interest income and expense include discounts accreted and premiums amortized on certain debt instruments as determined in good faith by the Adviser and calculated using the effective interest method. Loan origination fees, original issue discounts and market discounts or premiums are capitalized as part of the underlying cost of the investments and accreted or amortized over the life of the investment as interest income.

 

Management and Incentive Fees

 

The base management fee and the income-based incentive fees are expensed each quarter and payable in arrears. Additionally, we accrue a capital gains-based incentive fee quarterly that is paid annually in arrears. The accrual for the capital incentive fee includes the recognition of incentive fee on unrealized capital gains, even though such incentive fee is neither earned nor payable to the Adviser until the gains are both realized and in excess of unrealized depreciation on investments. The amount of capital gains incentive fee expense related to the hypothetical liquidation of the portfolio (and assuming no other changes in realized or unrealized gains and losses) would only become payable to the Adviser in the event of a complete liquidation of the Company’s portfolio as of period end and the termination of the Advisory Agreement on such date. Also, it should be noted that while we accrue the capital incentive fee quarterly, the expense will fluctuate with the Company’s overall investment results and the expense will be finalized at year end.


50

Expenses

 

For the three and six months ended June 30,March 31, 2023 and March 31, 2022, the Company incurred expenses of approximately $1,320$2,054 thousand and $2,308$989 thousand, respectively, primarily related to management fees, incentive fees, interest and debt financing expenses, organization expenses, professional fees, directors’ fees, offering costs and administration and custodian fees. For the three and six months ended June 30, 2021, the Company incurred expenses of approximately $1,070 thousand and $2,100 thousand, respectively.

  

Federal Income Taxes

 

We have elected to be treated, and to qualify annually, as a RIC under Subchapter M of the Code. Generally, a RIC is not subject to federal income taxes on distributed income and gains if it distributes at least 90% of its net ordinary income and net short-term capital gains in excess of its net long-term capital losses, if any, to its stockholders. We intend to distribute sufficient dividends to maintain our RIC status each year and we do not anticipate paying any material federal income taxes in the future.

 

Investment Income

 

For debt investments, we record interest income on the accrual basis to the extent that such amounts are expected to be collected. OID and purchased discounts and premiums are accreted/amortized into interest income using the effective interest method, where applicable. Loan origination fees are deferred and accreted into interest income using the effective interest method. We record prepayment premiums on loans and other investments as interest income when such amounts are received. We stop accruing interest on investments when it is determined that interest is no longer collectible. As of June 30,March 31, 2023 we had one loan on non-accrual status. As of March 31, 2022, and June 30, 2021, we had no loans on non-accrual status.

 

Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation

 

We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees and prepayment penalties. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

 

Realized gains and losses from securities transactions and unrealized appreciation and depreciation of securities are determined using the identified cost basis method for financial reporting.

 

Contractual Obligations

 

Commitments to extend credit include loan proceeds we are obligated to advance, such as delayed draws. Commitments generally have fixed expiration dates or other termination clauses. The par amount of the unfunded commitments is not recognized by the Company until the commitment becomes funded. As of June 30, 2022 andMarch 31, 2023, the Company had no unfunded commitments. As of December 31, 20212022, the Company had unfunded commitments of $383 thousand and $2,051 thousand, respectively.$74 thousand.


51

Off-Balance Sheet Arrangements

 

Other than contractual commitments and other legal contingencies incurred in the normal course of our business, we do not expect to have any off-balance sheet financings or liabilities. These instruments include commitments to extend credit and fund equity capital and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of June 30,March 31, 2023 and December 31, 2022, we had a total of $383$190 thousand and $74 thousand, respectfully in outstanding commitments comprised of investments with commitments to fund revolving loans that had not been fully drawn or term loans with additional commitments not yet funded. As of December 31, 2021, we had a total of $2,051 thousand in outstanding commitments comprised of investments with commitments to fund revolving loans that had not been fully drawn or term loans with additional commitments not yet funded.

 

Related Party Transactions

 

As of June 30, 2022,March 31, 2023, affiliates owned approximately 45%42% of the Company representing approximately $21,893$22,055 thousand of the Company’s net assets. During the year ended December 31, 2022 an affiliate of the Company contributed $250 thousand of cash in exchange for equity in the Company. As of December 31, 2021,2022, affiliates owned approximately 55%43% of the Company representing approximately $25,901$21,458 thousand of the Company’s net assets.

 

For the three and six months ended June 30, 2022 and the three months ended June 30, 2021, Moelis Asset, parent of the Investment Advisor did not make a contribution to the Company. For the six months ended June 30, 2021, Moelis Asset, parent of the Investment Advisor contributed approximately $36 thousand to pay organizational and offering costs incurred by the Company related to the formation of the entity. Moelis Asset has incurred these expenses and they will not be charged back to the Company.

Separate from the contributions made above, the Company may, from time to time, purchase investments from, or sell investments to affiliates of our Investment Advisor at fair value on the trade date. For the three and six months ended June 30,March 31, 2023 and March 31, 2022, and June 30, 2021, there were no purchases of investments from or sales of investments to affiliates of our Investment Advisor.

 

For the three and six months ended June 30,March 31, 2023 and March 31, 2022, the Company incurred $20 thousand and $40$20 thousand in directors’ fees expense, respectively. For the three and six months ended June 30, 2021, the Company incurred $22 thousand and $42 thousand in directors’ fees expense, respectively. On August 13, 2021, the Board agreed to make investments rather than gross assets the basis for their fee to be more in line with the waivers implemented for management fees.

 

The Company carries employment practices liability, directors and officers and errors and omission insurance. For the best interests of the Company, these policies are joint liability policies with Moelis Asset and its affiliates.

  

Organizational and Offering Expenses

 

For the three and six months ended June 30,March 31, 2023 and March 31, 2022 the Company did not incur organizational or offering expenses. For the three and six months ended June 30, 2021, the Company incurred $39 thousand and $159 thousand of organizational and offering costs, respectively. Organizational costs are expensed as incurred and offering cost are amortized over a 12 month period. For the three and six months ended June 30, 2022 Moelis Asset, parent of the Investment Advisor, did not pay any organizational and offering costs incurred by the Company. For the three and six months ended June 30, 2021 Moelis Asset paid approximately $39 thousand and $123 thousand of organizational and offering costs incurred by the Company related to the formation of the entity, respectively. Moelis Asset incurred these expenses and they will not be charged back to the Company.


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Investment Advisory Agreement

 

We have entered into the Investment Advisory Agreement with the Investment Advisor, an affiliate of Moelis Asset, which was approved by our Board and our sole stockholder for an initial two-year term, under which the Investment Advisor, subject to the overall supervision of our Board manages the day-to-day operations of and provides investment advisory services to us. Subsequent to that two-year term, the Board will approve the Investment Advisory Agreement of Investment Advisor for renewal annually.

 

On August 15, 2022 the Board approved the renewal of the Investment Advisory Agreement which automatically renews for successive one-year periods each September 17th; provided that such continuance is specifically approved at least annually by the vote of the Board or by the vote of a majority of the outstanding voting securities of the Company and the vote of a majority of the Independent Directors, in accordance with the requirements of the 1940 Act.

Our Investment Advisor has agreed to waive its fees (base management and incentive fee), without recourse against or reimbursement by us, for any quarter where net investment income plus net realized capital gains is not sufficient to maintain a targeted annual distribution payment on shares of common stock outstanding on the relevant payment dates of 6.0% based on our net asset value per share.

The base management fee is calculated at a maximum annual rate of 1.0% of the average of the weighted average (based on the number of shares outstanding each day in the quarter) of our gross assets (including uninvested cash and cash equivalents) at the end of each of the two most recently completed calendar quarters. On August 13, 2021, the Board agreed to make investments rather than gross assets the basis for their fee to be more in line with the waivers implemented for management fees.  Net management fees for the three and six months ended June 30,March 31, 2023 and March 31, 2022 were $143$320 thousand and $364$221 thousand, respectively. The Company elected to waive a portion of the management fee and charged management fees on investments rather than gross assets. The Investment Advisor has agreed to a 6.0% priority dividend to shareholders before receiving a fee for the services it provides to the Company.

   

Administration Agreement

 

We have entered into the Administration Agreement with the Administrator, an affiliate of Moelis Asset, which was approved by our Board and our sole stockholder for an initial two-year term, under which the Administrator, subject to the overall supervision of our Board manages the day-to-day operations of, and provides office space, office services and equipment and other administration services to us. Subsequent to that two-year term, the Board will approve the Administration Agreement of Administrator for renewal annually.

 

On August 15, 2022 the Board approved the renewal of the Administration Agreement which automatically renews for successive one-year periods each September 17th; provided that such continuance is specifically approved at least annually by the vote of the Board or by the vote of a majority of the outstanding voting securities of the Company and the vote of a majority of the members of the Company’s Board who are not parties to this Agreement or “interested persons” (as such term defined in Section 2(a)(19) of the Investment Company Act) of any such party, in accordance with the Investment Company Act.

Recent Developments

 

Management has evaluated subsequent events through the date of issuance of these consolidated financial statements and has determined that there are no subsequent events outside the ordinary scope of business that require adjustment to, or disclosure in, the consolidated financial statements other than those disclosed below.

 

On July 1, 2022,April 3, 2023, the Company issued and sold 61,10734,712 shares of its common stock to certain investors for an aggregate offering price of $563$318 thousand. The sale of its common stock was made pursuant to subscription agreements between the Company and the investors, and the issuance of the common stock was exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder.

 

On July 15, 2022,May 1, 2023, the Company issued and sold 73,72231,900 shares of its common stock to certain investors for an aggregate offering price of $673$297 thousand. The sale of its common stock was made pursuant to subscription agreements between the Company and the investors, and the issuance of the common stock was exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder.

 

On August 5, 2022,April 19, 2023, the Company issuedpaid approximately $1,046 thousand for the approximately 113,999 shares tendered and sold 5,651 sharesaccepted at the close of its common stock to certain investors for an aggregate offering price of $54 thousand. The sale of its common stock was made pursuant to subscription agreements betweenthe March 2023 tender offer.

Effective January 3, 2023, the Company reduced the frequency of capital closes from two per month on the first and third Friday to a single close on the investors, and the issuancefirst business day of the common stock was exempt frommonth, with a second optional monthly close at the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder.Investment Advisor’s discretion.


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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

We are subject to financial market risks, including changes in interest rates. Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates. Because we expect to fund a portion of our investments with borrowings, our net investment income is expected to be affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

 

As of June 30, 2022,March 31, 2023, 100% of our loan portfolio bore interest at floating rates with 83.1%82.9% (at fair value) having an interest rate floor between 0.50% and 1.00%. The floating rate loans are usually based on a LIBOR (or an alternative risk-free floating interest rate index) rate and typically have durations ranging from one to six months, after which they reset to current market interest rates. Floating rate investments subject to a floor generally reset to the current market index after one to nine months if the index exceeds the floor. For positions with an interest rate floor, we do not benefit from increases in interest rates until such rates exceed the floor and thereafter benefit from market rates above any such floor. Recent interest rate increases announced in the United States have driven the LIBOR and SOFR rates above the floors in effect as of quarter end. Base rates on 100% of the portfolio exceeds the stated floors.

 

Assuming that the consolidated statement of assets and liabilities as of June 30, 2022March 31, 2023 was to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates:

 

  As of June 30, 2022 
Basis Point Changes Interest
Income		  Interest
Expense		  Net
Income		 
Up 300 basis points $4,236  $(2,589) $1,647 
Up 200 basis points  2,824   (1,726)  1,098 
Up 100 basis points  1,412   (863)  549 
Down 100 basis points  (1,391)  863   (528)
Down 200 basis points  (1,997)  1,726   (271)
  As of March 31, 2023 
Basis Point Changes Interest
Income		  Interest
Expense		  Net
Income		 
Up 300 basis points $4,099  $(2,488) $1,611 
Up 200 basis points  2,733   (1,658)  1,075 
Up 100 basis points  1,366   (829)  537 
Down 100 basis points  (1,356)  829   (527)
Down 200 basis points  (2,713)  1,658   (1,055)
Down 300 basis points  (4,068)  2,488   (1,580)

 

Although management believes that this measure is indicative of our sensitivity to interest rates, it does not reflect any potential impact to the fair value of our investments as a result of changes to interest rates, nor does it adjust for potential changes in the credit market, credit quality, size and composition of the assets in our consolidated statement of assets and liabilities and other business developments that could affect the net increase/(decrease) in net assets resulting from operations or net investment income. Accordingly, no assurances can be given that actual results would not differ materially from those shown above.

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

As of June 30, 2022,March 31, 2023, we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. 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 such possible controls and procedures.

 

Changes in Internal Control over Financial Reporting

 

There have been no changes in our “internal control over financial reporting” (as defined in Rule 13a 15(f) of the Exchange Act) that occurred during our quarter ended June 30, 2022March 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 


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PART II—OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us. From time to time, we may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under loans to or other contracts with our portfolio companies.

 

Item 1A. Risk Factors.

 

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 20212022 (the “Annual Report on Form 10-K”), which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K are not the only risks we face. Additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. Other than the risk factors below, during the sixthree months ended June 30, 2022,March 31, 2023, there have been no material changes from the risk factors set forth in our Annual Report on Form 10-K.

 

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

 

None.

 

Item 3. Default Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

Item 5. Other Information.

 

None.


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Item 6. Exhibits, Financial Statement Schedules

 

Exhibit

Index

  
3.1 Form of Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to Registrant’s Amendment No. 1 to Registration Statement on Form 10 (File No. 000-56189) filed on November 9, 2020).
   
3.2 Bylaws (Incorporated by reference to Exhibit 3.2 to Registrant’s Amendment No. 1 to Registration Statement on Form 10 (File No. 000-56189) filed on November 9, 2020).
10.7*Form of Subscription Agreement
   
31.1* Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
   
31.2* Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
   
32.1* Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
   
32.2* Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*Inline XBRL Instance Document
101.SCH*Inline XBRL Taxonomy Extension Schema Document
101.CAL*Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101)

 

**Filed herewith

SIGNATURES

 

56

SIGNATURES

Pursuant to the requirements 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.

 

 Steele Creek Capital Corporation
  
Date: AugustMay 15, 20222023/s/ Glenn Duffy
 Name: Glenn Duffy
 Title: Chief Executive Officer,

Chief Investment Officer, and President

(Principal Executive Officer)
  
Date: AugustMay 15, 20222023/s/ Douglas Applegate Jr.
 Name:  Douglas Applegate Jr.
 Title:Chief Financial Officer

(Principal Financial and Accounting Officer)

 

 

4657

 

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