UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

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

 

For the Quarterly Period Ended MayAugust 31, 2023

 

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

 

Commission File No. 814-00732

 

SARATOGA INVESTMENT CORP.

(Exact name of registrant as specified in its charter)

 

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

 

535 Madison Avenue

New York, New York 10022

(Address of principal executive offices)

 

(212) 906-7800

(Registrant’s telephone number, including area code)

 

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

 

Title of each class Trading Symbol(s) Name of each exchange on which
registered
Common Stock, par value $0.001 per share SAR The New York Stock Exchange
6.00% Notes due 2027 SAT The New York Stock Exchange
8.00% Notes due 2027 SAJ The New York Stock Exchange
8.125% Notes due 2027 SAY The New York Stock Exchange
8.50% Notes due 2027 SAZ The New York Stock Exchange

 

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

 

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

 

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

 

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

 

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

 

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

 

The number of outstanding common shares of the registrant as of July 7,October 6, 2023 was 11,979,781.13,114,977.

 

 

 

 

 

 

TABLE OF CONTENTS

 

  Page
PART I.FINANCIAL INFORMATION1
   
Item 1.Consolidated Financial Statements1
   
 Consolidated Statements of Assets and Liabilities as of MayAugust 31, 2023 (unaudited) and February 28, 20231
   
 Consolidated Statements of Operations for the three months and six ended MayAugust 31, 2023 (unaudited) and MayAugust 31, 2022 (unaudited)2
   
 Consolidated Statements of Changes in Net Assets for three and six months ended MayAugust 31, 2023 (unaudited) and MayAugust 31, 2022 (unaudited)3
   
 Consolidated Statements of Cash Flows for the threesix months ended MayAugust 31, 2023 (unaudited) and MayAugust 31, 2022 (unaudited)4
   
 Consolidated Schedules of Investments as of MayAugust 31, 2023 (unaudited) and February 28, 20235
   
 Notes to Consolidated Financial Statements as of MayAugust 31, 2023 (unaudited)2627
   
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations93100
   
Item 3.Quantitative and Qualitative Disclosures About Market Risk135139
   
Item 4.Controls and Procedures136140
   
PART II.OTHER INFORMATION137141
   
Item 1.Legal Proceedings137141
   
Item 1A.Risk Factors137141
   
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds137142
   
Item 3.Defaults Upon Senior Securities137142
   
Item 4.Mine Safety Disclosures137142
   
Item 5.Other Information137142
   
Item 6.Exhibits137143
   
Signatures141147

 

i

 

PART I. FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

Saratoga Investment Corp.

Consolidated Statements of Assets and Liabilities

 May 31,
2023		  February 28,
2023		  August 31,
2023		  February 28,
2023		 
 (unaudited)     (unaudited)    
ASSETS          
Investments at fair value          
Non-control/Non-affiliate investments (amortized cost of $934,686,593 and $819,966,208, respectively) $941,021,051  $828,028,800 
Affiliate investments (amortized cost of $40,471,309 and $25,722,320, respectively)  42,809,576   28,305,871 
Control investments (amortized cost of $119,161,637 and $120,800,829, respectively)  100,267,501   116,255,582 
Total investments at fair value (amortized cost of $1,094,319,539 and $966,489,357, respectively)  1,084,098,128   972,590,253 
Non-control/Non-affiliate investments (amortized cost of $953,247,363 and $819,966,208, respectively) $947,924,370  $828,028,800 
Affiliate investments (amortized cost of $44,385,672 and $25,722,320, respectively)  46,763,587   28,305,871 
Control investments (amortized cost of $117,270,707 and $120,800,829, respectively)  104,256,803   116,255,582 
Total investments at fair value (amortized cost of $1,114,903,742 and $966,489,357, respectively)  1,098,944,760   972,590,253 
Cash and cash equivalents  21,987,196   65,746,494   19,305,025   65,746,494 
Cash and cash equivalents, reserve accounts  31,165,969   30,329,779   29,127,875   30,329,779 
Interest receivable (net of reserve of $3,517,085 and $2,217,300, respectively)  7,831,749   8,159,951 
Interest receivable (net of reserve of $4,673,871 and $2,217,300, respectively)  8,032,228   8,159,951 
Management fee receivable  362,026   363,809   364,717   363,809 
Other assets  667,906   531,337   436,948   531,337 
Current tax receivable  99,676   436,551   99,676   436,551 
Total assets $1,146,212,650  $1,078,158,174  $1,156,311,229  $1,078,158,174 
                
LIABILITIES                
Revolving credit facility $35,000,000  $32,500,000  $35,000,000  $32,500,000 
Deferred debt financing costs, revolving credit facility  (1,227,903)  (1,344,005)  (1,111,801)  (1,344,005)
SBA debentures payable  202,000,000   202,000,000   189,000,000   202,000,000 
Deferred debt financing costs, SBA debentures payable  (4,675,691)  (4,923,488)  (5,640,013)  (4,923,488)
8.75% Notes Payable 2024  20,000,000   -   20,000,000   - 
Discount on 8.75% notes payable 2024  (613,891)  -   (435,518)  - 
Deferred debt financing costs, 8.75% notes payable 2024  (26,441)  -   (18,465)  - 
7.00% Notes Payable 2025  12,000,000   12,000,000   12,000,000   12,000,000 
Discount on 7.00% notes payable 2025  (280,244)  (304,946)  (251,800)  (304,946)
Deferred debt financing costs, 7.00% notes payable 2025  (36,119)  (40,118)  (32,121)  (40,118)
7.75% Notes Payable 2025  5,000,000   5,000,000   5,000,000   5,000,000 
Deferred debt financing costs, 7.75% notes payable 2025  (115,704)  (129,528)  (101,880)  (129,528)
4.375% Notes Payable 2026  175,000,000   175,000,000   175,000,000   175,000,000 
Premium on 4.375% notes payable 2026  775,264   830,824   718,718   830,824 
Deferred debt financing costs, 4.375% notes payable 2026  (2,340,565)  (2,552,924)  (2,128,206)  (2,552,924)
4.35% Notes Payable 2027  75,000,000   75,000,000   75,000,000   75,000,000 
Discount on 4.35% notes payable 2027  (378,163)  (408,932)  (347,969)  (408,932)
Deferred debt financing costs, 4.35% notes payable 2027  (1,291,709)  (1,378,515)  (1,204,903)  (1,378,515)
6.25% Notes Payable 2027  15,000,000   15,000,000   15,000,000   15,000,000 
Deferred debt financing costs, 6.25% notes payable 2027  (326,976)  (344,949)  (309,003)  (344,949)
6.00% Notes Payable 2027  105,500,000   105,500,000   105,500,000   105,500,000 
Discount on 6.00% notes payable 2027  (149,633)  (159,334)  (141,155)  (159,334)
Deferred debt financing costs, 6.00% notes payable 2027  (2,750,119)  (2,926,637)  (2,573,601)  (2,926,637)
8.00% Notes Payable 2027  46,000,000   46,000,000   46,000,000   46,000,000 
Deferred debt financing costs, 8.00% notes payable 2027  (1,534,920)  (1,622,376)  (1,447,465)  (1,622,376)
8.125% Notes Payable 2027  60,375,000   60,375,000   60,375,000   60,375,000 
Deferred debt financing costs, 8.125% notes payable 2027  (1,869,394)  (1,944,536)  (1,766,716)  (1,944,536)
8.50% Notes Payable 2028  57,500,000   -   57,500,000   - 
Deferred debt financing costs, 8.50% notes payable 2028  (1,942,032)  -   (1,882,934)  - 
Base management and incentive fees payable  9,624,844   12,114,878   9,169,859   12,114,878 
Deferred tax liability  2,802,635   2,816,572   2,786,512   2,816,572 
Accounts payable and accrued expenses  1,898,623   1,464,343   1,965,484   1,464,343 
Interest and debt fees payable  4,485,867   3,652,936   3,231,853   3,652,936 
Directors fees payable  -   14,932   -   14,932 
Due to manager  359,073   10,935   378,598   10,935 
Total liabilities  808,761,802   731,200,132   794,232,474   731,200,132 
                
Commitments and contingencies (See Note 9)                
                
NET ASSETS                
Common stock, par value $0.001, 100,000,000 common shares authorized, 11,847,742 and 11,890,500 common shares issued and outstanding, respectively  11,848   11,891 
Common stock, par value $0.001, 100,000,000 common shares authorized, 12,729,781 and 11,890,500 common shares issued and outstanding, respectively  12,730   11,891 
Capital in excess of par value  320,793,316   321,893,806   345,876,725   321,893,806 
Total distributable earnings  16,645,684   25,052,345   16,189,300   25,052,345 
Total net assets  337,450,848   346,958,042   362,078,755   346,958,042 
Total liabilities and net assets $1,146,212,650  $1,078,158,174  $1,156,311,229  $1,078,158,174 
NET ASSET VALUE PER SHARE $28.48  $29.18  $28.44  $29.18 

See accompanying notes to consolidated financial statements.


 

  

Saratoga Investment Corp.

Consolidated Statements of Operations

(unaudited)

  

 For the three months ended  For the three months ended  For the six months ended 
 May 31,
2023		  May 31,
2022		  August 31,
2023		  August 31,
2022		  August 31,
2023		  August 31,
2022		 
INVESTMENT INCOME              
Interest from investments              
Interest income:              
Non-control/Non-affiliate investments $26,310,793  $13,851,146  $28,489,719  $16,197,470  $54,800,512  $30,048,616 
Affiliate investments  727,086   1,050,148   907,064   1,322,501   1,634,150   2,372,649 
Control investments  2,045,860   1,546,130   2,085,448   1,513,666   4,131,308   3,059,796 
Payment-in-kind interest income:                        
Non-control/Non-affiliate investments  124,895   85,681   493,338   85,746   618,233   171,427 
Affiliate investments  207,589   -   215,547   29,167   423,136   29,167 
Control investments  141,563   73,221   142,289   84,220   283,852   157,441 
Total interest from investments  29,557,786   16,606,326   32,333,405   19,232,770   61,891,191   35,839,096 
Interest from cash and cash equivalents  804,289   717   539,093   34,435   1,343,382   35,152 
Management fee income  816,788   815,964   817,250   817,024   1,634,038   1,632,988 
Dividend Income  1,840,930   300,129   1,631,583   212,688   3,472,513   512,817 
Structuring and advisory fee income  1,429,222   851,728   45,000   1,408,086   1,474,222   2,259,814 
Other income  183,028   104,268   147,814   147,843   330,842   252,111 
Total investment income  34,632,043   18,679,132   35,514,145   21,852,846   70,146,188   40,531,978 
                        
OPERATING EXPENSES                        
Interest and debt financing expenses  11,692,822   6,871,513   12,413,462   7,922,025   24,106,284   14,793,538 
Base management fees  4,564,189   3,802,063   4,840,899   4,104,105   9,405,088   7,906,168 
Incentive management fees expense (benefit)  103,348   (1,903,985)  2,481,473   589,840   2,584,821   (1,314,145)
Professional fees  486,050   417,325   486,673   368,165   972,723   785,490 
Administrator expenses  818,750   750,000   904,167   772,917   1,722,917   1,522,917 
Insurance  81,901   87,310   81,901   90,226   163,802   177,536 
Directors fees and expenses  89,068   110,000   111,000   110,000   200,068   220,000 
General and administrative  830,728   667,416   467,116   299,445   1,297,844   966,861 
Income tax expense (benefit)  6,237   (98,732)  (237,330)  (101,891)  (231,093)  (200,623)
Total operating expenses  18,673,093   10,702,910   21,549,361   14,154,832   40,222,454   24,857,742 
NET INVESTMENT INCOME  15,958,950   7,976,222   13,964,784   7,698,014   29,923,734   15,674,236 
                        
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS                        
Net realized gain (loss) from investments:                        
Non-control/Non-affiliate investments  90,691   162,509   -   7,943,838   90,691   8,106,347 
Net realized gain (loss) from investments  90,691   162,509   -   7,943,838   90,691   8,106,347 
Income tax (provision) benefit from realized gain on investments  -   69,250   -   -   -   69,250 
Net change in unrealized appreciation (depreciation) on investments:                        
Non-control/Non-affiliate investments  (1,728,134)  (634,289)  (11,657,451)  (13,878,470)  (13,385,585)  (14,512,759)
Affiliate investments  (245,284)  567,606   39,648   2,600,434   (205,636)  3,168,040 
Control investments  (14,348,889)  (9,266,766)  5,880,232   (1,980,420)  (8,468,657)  (11,247,186)
Net change in unrealized appreciation (depreciation) on investments  (16,322,307)  (9,333,449)  (5,737,571)  (13,258,456)  (22,059,878)  (22,591,905)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  59,407   (361,951)  (221,206)  (230,154)  (161,799)  (592,105)
Net realized and unrealized gain (loss) on investments  (16,172,209)  (9,463,641)  (5,958,777)  (5,544,772)  (22,130,986)  (15,008,413)
Realized losses on extinguishment of debt  (110,056)  (1,204,809)  (110,056)  (1,204,809)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $(213,259) $(1,487,419) $7,895,951  $948,433  $7,682,692  $(538,986)
                        
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE $(0.02) $(0.12) $0.65  $0.08  $0.64  $(0.04)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED  11,862,163   12,112,372   12,158,440   11,963,276   12,011,180   12,037,855 

 

See accompanying notes to consolidated financial statements.

  


 

  

Saratoga Investment Corp.

Consolidated Statements of Changes in Net Assets

(unaudited)

 

 For the three months ended  For the six months ended 
 May 31,
2023		  May 31,
2022		  August 31,
2023		 August 31,
2022		 
DECREASE FROM OPERATIONS:     
INCREASE (DECREASE) FROM OPERATIONS:     
Net investment income $15,958,950  $7,976,222  $29,923,734 $15,674,236 
Net realized gain from investments  90,691   162,509  90,691 8,106,347 
Realized losses on extinguishment of debt (110,056) (1,204,809)
Income tax (provision) benefit from realized gain on investments  -   69,250  - 69,250 
Net change in unrealized appreciation (depreciation) on investments  (16,322,307)  (9,333,449) (22,059,878) (22,591,905)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  59,407   (361,951)  (161,799)  (592,105)
Net decrease in net assets resulting from operations  (213,259)  (1,487,419)
Net increase (decrease) in net assets resulting from operations  7,682,692  (538,986)
             
DECREASE FROM SHAREHOLDER DISTRIBUTIONS:             
Total distributions to shareholders  (8,193,402)  (6,428,817)  (16,545,737)  (12,798,798)
Net decrease in net assets from shareholder distributions  (8,193,402)  (6,428,817)  (16,545,737)  (12,798,798)
             
CAPITAL SHARE TRANSACTIONS:             
Proceeds from issuance of common stock (1) 22,498,117 - 
Capital contribution from manager 2,050,288 - 
Stock dividend distribution  1,058,844   1,108,680  1,808,157 2,196,868 
Repurchases of common stock  (2,157,605)  (3,734,316) (2,157,605) (7,420,421)
Repurchase fees  (1,772)  (2,840) (1,772) (5,911)
Net decrease in net assets from capital share transactions  (1,100,533)  (2,628,476)
Total decrease in net assets  (9,507,194)  (10,544,712)
Offering costs  (213,427)  - 
Net increase (decrease) in net assets from capital share transactions  23,983,758  (5,229,464)
Total increase (decrease) in net assets 15,120,713 (18,567,248)
Net assets at beginning of period  346,958,042   355,780,523   346,958,042  355,780,523 
Net assets at end of period $337,450,848  $345,235,811  $362,078,755 $337,213,275 

 

See accompanying notes to consolidated financial statements.


Saratoga Investment Corp.

Consolidated Statements of Cash Flows

(unaudited)

  For the three months ended 
  May 31,
2023		  May 31,
2022		 
Operating activities      
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $(213,259) $(1,487,419)
ADJUSTMENTS TO RECONCILE NET INCREASE (DECREASE) IN NET ASSETS RESULTING        
FROM OPERATIONS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:        
Payment-in-kind and other adjustments to cost  1,473,779   1,322,915 
Net accretion of discount on investments  (461,543)  (350,408)
Amortization of deferred debt financing costs  1,220,162   798,768 
Income tax expense (benefit)  6,237   (37,823)
Net realized (gain) loss from investments  (90,691)  (162,509)
Net change in unrealized (appreciation) depreciation on investments  16,322,307   9,333,449 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  (59,407)  361,951 
Proceeds from sales and repayments of investments  11,067,194   10,088,607 
Purchases of investments  (139,818,921)  (97,197,844)
(Increase) decrease in operating assets:        
Interest receivable  328,202   (232,195)
Due from affiliate  -   (14,669)
Management fee receivable  1,783   (228)
Other assets  (136,569)  34,771 
Current income tax receivable  336,875   - 
Increase (decrease) in operating liabilities:        
Base management and incentive fees payable  (2,490,034)  (4,309,544)
Accounts payable and accrued expenses  434,280   221,783 
Current tax payable  -   (129,840)
Interest and debt fees payable  832,931   2,327,626 
Directors fees payable  (14,932)  38,566 
Excise tax payable  -   (630,183)
Due to manager  348,138   (186,057)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES  (110,913,468)  (80,210,283)
         
Financing activities        
Borrowings on debt  32,500,000   44,500,000 
Paydowns on debt  (30,000,000)  - 
Issuance of notes  77,500,000   97,500,000 
Payments of deferred debt financing costs  (2,715,705)  (4,112,912)
Proceeds from issuance of common stock  -   - 
Payments of cash dividends  (7,134,558)  (5,320,137)
Repurchases of common stock  (2,157,605)  (3,734,316)
Repurchases fees  (1,772)  (2,840)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES  67,990,360   128,829,795 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS  (42,923,108)  48,619,512 
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD  96,076,273   52,870,342 
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD SEE NOTE 2 $53,153,165  $101,489,854 
         
Supplemental information:        
Interest paid during the period $9,639,729  $3,589,281 
Cash paid for taxes  300   374 
Supplemental non-cash information:        
Payment-in-kind interest income and other adjustments to cost  (1,473,779)  (1,322,915)
Net accretion of discount on investments  461,543   350,408 
Amortization of deferred debt financing costs  1,220,162   798,768 
Stock dividend distribution  1,058,844   1,108,680 
(1)See Note 11 to the Consolidated Financial Statements contained herein for more information on share issuance.

 

See accompanying notes to consolidated financial statements.

  


 

  

Saratoga Investment Corp.

Consolidated Statements of Cash Flows

(unaudited)

  For the six months ended 
  August 31,
2023		  August 31,
2022		 
Operating activities      
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $7,682,692  $(538,986)
ADJUSTMENTS TO RECONCILE NET INCREASE (DECREASE) IN NET ASSETS RESULTING        
FROM OPERATIONS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:        
Payment-in-kind and other adjustments to cost  2,707,440   1,594,054 
Net accretion of discount on investments  (862,540)  (833,939)
Amortization of deferred debt financing costs  2,589,024   1,674,315 
Realized losses on extinguishment of debt  110,056   1,204,809 
Income tax expense (benefit)  (231,093)  (269,873)
Net realized (gain) loss from investments  (90,691)  (8,106,347)
Net change in unrealized (appreciation) depreciation on investments  22,059,878   22,591,905 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  161,799   592,105 
Proceeds from sales and repayments of investments  17,103,496   105,173,099 
Purchases of investments  (167,272,090)  (257,515,083)
(Increase) decrease in operating assets:        
Interest receivable  127,723   73,870 
Due from affiliate  -   73,298 
Management fee receivable  (908)  (1,003)
Other assets  94,389   (465)
Current income tax receivable  336,875   64,638 
Increase (decrease) in operating liabilities:        
Base management and incentive fees payable  (2,945,019)  (3,417,662)
Accounts payable and accrued expenses  501,141   389,516 
Current tax payable  -   (2,820,036)
Interest and debt fees payable  (421,083)  271,856 
Directors fees payable  (14,932)  38,932 
Excise tax payable  -   (630,183)
Due to manager  367,663   (74,562)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES  (117,996,180)  (140,465,742)
         
Financing activities        
Borrowings on debt  46,500,000   79,500,000 
Paydowns on debt  (57,000,000)  (18,340,000)
Issuance of notes  77,500,000   105,500,000 
Repayments of notes  -   (43,125,000)
Payments of deferred debt financing costs  (4,085,214)  (5,087,947)
Discount on debt issuance, 6.00% notes 2027  -   (176,000)
Proceeds from issuance of common stock  22,498,117   - 
Capital contribution from manager  

2,050,288

   - 
Payments of cash dividends  (14,737,580)  (10,601,930)
Repurchases of common stock  (2,157,605)  (7,420,421)
Repurchases fees  (1,772)  (5,911)
Payments of offering costs  (213,427)  - 
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES  70,352,807   100,242,791 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS  (47,643,373)  (40,222,951)
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD  96,076,273   52,870,342 
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD (See Note 2) $48,432,900  $12,647,391 
         
Supplemental information:        
Interest paid during the period $21,938,344  $12,691,530 
Cash paid for taxes  4,852   2,759,376 
Supplemental non-cash information:        
Payment-in-kind interest income and other adjustments to cost  (2,707,440)  (1,799,723)
Net accretion of discount on investments  862,540   833,939 
Amortization of deferred debt financing costs  2,589,024   1,674,315 
Stock dividend distribution  1,808,157   2,196,868 

See accompanying notes to consolidated financial statements.


Saratoga Investment Corp.

Consolidated Schedule of Investments

MayAugust 31, 2023

(unaudited)

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		 Cost Fair
Value (c)		 % of
Net Assets		  Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		 Cost Fair
Value (c)		 % of
Net Assets		 
Non-control/Non-affiliate investments - 278.9% (b)                    
Non-control/Non-affiliate investments - 261.8% (b)                     
Altvia MidCo, LLC. Alternative Investment Management Software First Lien Term Loan
(3M USD TERM SOFR+8.50%), 13.79% Cash, 7/18/2027		 7/18/2022 $7,960,000  $7,892,121  $7,906,668   2.3% Alternative Investment Management Software 

First Lien Term Loan

(3M USD TERM SOFR+8.50%), 13.90% Cash, 7/18/2027

  7/18/2022  $7,940,000  $7,874,743  $7,851,072   2.2%
Altvia MidCo, LLC. (h) Alternative Investment Management Software Series A-1 Preferred Shares 7/18/2022  2,000,000   2,000,000   2,683,000   0.8% Alternative Investment Management Software Series A-1 Preferred Shares  7/18/2022   2,000,000   2,000,000   2,844,302   0.8%
   Total Alternative Investment Management Software      9,892,121   10,589,668   3.1%   Total Alternative Investment Management Software         9,874,743   10,695,374   3.0%
GrowthZone, LLC Association Management Software First Lien Term Loan
(3M USD TERM SOFR+8.25%), 13.54% Cash, 5/10/2028		 5/10/2023 $17,500,000   17,186,658   17,185,000   5.1%
Golden TopCo LP Association Management Software Class A-2 Common Units 5/10/2023  1,000,000   1,000,000   1,000,000   0.3%
   Total Association Management Software      18,186,658   18,185,000   5.4%
BQE Software, Inc. Architecture & Engineering Software First Lien Term Loan
(3M USD TERM SOFR+6.75%), 12.04% Cash, 4/13/2028		 4/13/2023 $24,500,000   24,255,000   24,255,000   7.2% Architecture & Engineering Software 

First Lien Term Loan

(3M USD TERM SOFR+6.75%), 12.15% Cash, 4/13/2028

  4/13/2023  $24,500,000   24,255,000   24,255,000   6.7%
BQE Software, Inc. (j) Architecture & Engineering Software Delayed Draw Term Loan
(3M USD TERM SOFR+6.75%), 12.04% Cash, 4/13/2028		 4/13/2023 $-   -   -   0.0% Architecture & Engineering Software 

Delayed Draw Term Loan

(3M USD TERM SOFR+6.75%), 12.15% Cash, 4/13/2028

  4/13/2023  $750,000   742,500   742,500   0.2%
   Total Architecture & Engineering Software         24,997,500   24,997,500   6.9%
GrowthZone, LLC Association Management Software 

First Lien Term Loan

(3M USD TERM SOFR+8.25%), 13.65% Cash, 5/10/2028

  5/10/2023  $17,500,000   17,195,327   17,185,000   4.7%
Golden TopCo LP (h) Association Management Software Class A-2 Common Units  5/10/2023   1,000,000   1,000,000   1,000,000   0.3%
   Total Architecture & Engineering Software      24,255,000   24,255,000   7.2%   Total Association Management Software         18,195,327   18,185,000   5.0%
Artemis Wax Corp. (d)(j) Consumer Services Delayed Draw Term Loan
(1M USD TERM SOFR+6.75%), 11.92% Cash, 5/20/2026		 5/20/2021 $57,500,000   57,092,886   57,500,000   17.0% Consumer Services 

Delayed Draw Term Loan

(1M USD TERM SOFR+6.75%), 12.08% Cash, 5/20/2026

  5/20/2021  $57,500,000   57,159,311   57,517,250   15.9%
Artemis Wax Corp. (h) Consumer Services Series B-1 Preferred Stock 5/20/2021  934,463   1,500,000   4,381,624   1.3% Consumer Services Series B-1 Preferred Stock  5/20/2021   934,463   1,500,000   4,738,970   1.3%
Artemis Wax Corp. (h) Consumer Services Series D Preferred Stock 12/22/2022  278,769   1,500,000   1,576,400   0.5% Consumer Services Series D Preferred Stock  12/22/2022   278,769   1,500,000   1,622,086   0.4%
   Total Consumer Services      60,092,886   63,458,024   18.8%   Total Consumer Services         60,159,311   63,878,306   17.6%
Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020  1,050   475,698   4,015,221   1.2% Corporate Education Software Series 1 Membership Interest  12/8/2020   1,050   475,698   4,181,695   1.2%
   Total Corporate
Education Software		      475,698   4,015,221   1.2%   Total Corporate Education Software         475,698   4,181,695   1.2%
GreyHeller LLC (h) Cyber Security Common Stock 11/10/2021  7,857,689   1,906,275   2,465,500   0.7% Cyber Security Common Stock  11/10/2021   7,857,689   1,906,275   2,512,620   0.7%
   Total Cyber Security      1,906,275   2,465,500   0.7%   Total Cyber Security         1,906,275   2,512,620   0.7%
Gen4 Dental Partners Holdings, LLC (j) Dental Practice Management 

Delayed Draw Term Loan

(3M USD TERM SOFR+10.18%), 15.73% Cash, 4/29/2026

  2/8/2023  $7,632,878   7,610,421   7,785,536   2.2%

 


 

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		 Cost Fair
Value (c)		 % of
Net Assets		  Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		 Cost Fair
Value (c)		 % of
Net Assets		 
Gen4 Dental Partners Holdings, LLC (i)(h) Dental Practice Management Series A Preferred Units  2/8/2023   493,999   1,027,519   1,096,678   0.3%
New England Dental Partners Dental Practice Management First Lien Term Loan
(3M USD LIBOR+8.00%), 13.52% Cash, 11/25/2025		 11/25/2020 $6,555,000   6,520,210   6,514,359   1.9% Dental Practice Management 

First Lien Term Loan

(3M USD TERM SOFR+8.00%), 13.55% Cash, 11/25/2025

  11/25/2020  $6,555,000   6,521,830   6,525,503   1.8%
New England Dental Partners Dental Practice Management Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 13.52% Cash, 11/25/2025		 11/25/2020 $4,650,000   4,631,286   4,621,170   1.4% Dental Practice Management 

Delayed Draw Term Loan

(3M USD TERM SOFR+8.00%), 13.55% Cash, 11/25/2025

  11/25/2020  $4,650,000   4,632,430   4,629,075   1.3%
Gen4 Dental Partners Holdings, LLC (j) Dental Practice Management Delayed Draw Term Loan
(3M USD TERM SOFR+10.20%), 15.64% Cash, 4/29/2026		 2/8/2023 $1,814,352   1,727,539   1,798,567   0.5%
Gen4 Dental Partners Holdings, LLC (i)(h) Dental Practice Management Series A Preferred Units 2/8/2023  493,999   1,027,519   1,027,519   0.3%
   Total Dental Practice Management      13,906,554   13,961,615   4.1%   Total Dental Practice Management         19,792,200   20,036,792   5.6%
Exigo, LLC (d) Direct Selling Software First Lien Term Loan
(1M USD TERM SOFR+5.75%), 11.02% Cash, 3/16/2027		 3/16/2022 $24,541,667   24,375,721   24,171,088   7.2% Direct Selling Software 

First Lien Term Loan

(1M USD TERM SOFR+5.75%), 11.18% Cash, 3/16/2027

  3/16/2022  $24,437,500   24,275,643   24,088,044   6.7%
Exigo, LLC (j) Direct Selling Software Delayed Draw Term Loan
(1M USD TERM SOFR+5.75%), 11.02% Cash, 3/16/2027		 3/16/2022 $-   -   (62,917)  0.0% Direct Selling Software 

Delayed Draw Term Loan

(1M USD TERM SOFR+5.75%), 11.18% Cash, 3/16/2027

  3/16/2022  $-   -   (59,583)  0.0%
Exigo, LLC (j) Direct Selling Software Revolving Credit Facility
(1M USD TERM SOFR+5.75%), 11.02% Cash, 3/16/2027		 3/16/2022 $-   -   (15,729)  0.0% Direct Selling Software 

Revolving Credit Facility

(1M USD TERM SOFR+5.75%), 11.18% Cash, 3/16/2027

  3/16/2022  $-   -   (14,896)  0.0%
Exigo, LLC (h), (i) Direct Selling Software Common Units 3/16/2022  1,041,667   1,041,667   1,143,414   0.3% Direct Selling Software Common Units  3/16/2022   1,041,667   1,041,667   1,165,811   0.3%
   Total Direct Selling Software      25,417,388   25,235,856   7.5%   Total Direct Selling Software         25,317,310   25,179,376   7.0%
C2 Educational Systems, Inc. (d)(j) Education Services First Lien Term Loan
(3M USD TERM SOFR+8.50%), 13.79% Cash, 5/31/2025		 5/31/2017 $21,500,000   21,469,290   21,497,850   6.4% Education Services 

First Lien Term Loan

(3M USD TERM SOFR+8.50%), 13.90% Cash, 5/31/2025

  5/31/2017  $21,500,000   21,471,737   21,536,550   5.9%
C2 Education Systems, Inc. (h) Education Services Series A-1 Preferred Stock 5/18/2021  3,127   499,904   616,457   0.2% Education Services Series A-1 Preferred Stock  5/18/2021   3,127   499,904   618,837   0.2%
Zollege PBC Education Services 

First Lien Term Loan

(3M USD TERM SOFR+7.00%), 14.40% Cash/2.00% PIK, 5/11/2026

  5/11/2021  $16,380,033   16,295,284   15,062,186   4.2%
Zollege PBC(j) Education Services First Lien Term Loan
(3M USD LIBOR+7.00%), 12.52% Cash, 5/11/2026		 5/11/2021 $16,000,000   15,912,289   14,555,000   4.3% Education Services 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.00%), 14.40% Cash/2.00% PIK, 5/11/2026

  5/11/2021  $937,443   931,036   864,603   0.2%
Zollege PBC (j)(h) Education Services Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 12.52% Cash, 5/11/2026		 5/11/2021 $500,000   497,061   457,500   0.1% Education Services Class A Units  5/11/2021   250,000   250,000   93,175   0.0%
Zollege PBC (h) Education Services Class A Units 5/11/2021  250,000   250,000   86,103   0.0%
   Total Education Services      38,628,544   37,212,910   11.0%   Total Education Services         39,447,961   38,175,351   10.5%
Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018  3,068   3,969,291   8,769,222   2.6%
GoReact Education Software First Lien Term Loan
(3M USD TERM SOFR+7.50%), 13.99% Cash, 1/17/2025		 1/17/2020 $8,026,477   7,980,635   8,008,016   2.4%
GoReact (j) Education Software Delayed Draw Term Loan
(3M USD TERM SOFR+7.50%), 13.99% Cash, 1/17/2025		 1/18/2022 $2,505,603   2,505,603   2,499,840   0.7%
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014  232,616   232,616   250,621   0.1%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020  43,715   171,571   221,750   0.1%
Ready Education Education Software First Lien Term Loan
(3M USD TERM SOFR+6.00%), 11.29% Cash, 8/5/2027		 8/5/2022 $27,000,000   26,767,058   26,427,600   7.8%
   Total Education Software      41,626,774   46,177,049   13.7%
TG Pressure Washing Holdings, LLC (h) Facilities Maintenance Preferred Equity 8/12/2019  488,148   488,148   298,279   0.1%
   Total Facilities Maintenance      488,148   298,279   0.1%

 


 

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Davisware, LLC Field Service Management First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.29% Cash, 7/31/2024		 9/6/2019 $6,000,000   5,978,353   5,953,800   1.8%
Davisware, LLC Field Service Management Delayed Draw Term Loan
(3M USD TERM SOFR+7.00%), 12.29% Cash, 7/31/2024		 9/6/2019 $3,977,790   3,956,315   3,947,161   1.2%
    Total Field Service Management        9,934,668   9,900,961   3.0%
B. Riley Financial, Inc. (a) Financial Services Senior Unsecured Loan
6.75% Cash, 5/31/2024		 10/18/2022 $165,301   165,301   165,301   0.0%
GDS Software Holdings, LLC Financial Services First Lien Term Loan
(3M USD LIBOR+7.00%), 12.52% Cash, 12/30/2026		 12/30/2021 $22,713,926   22,610,530   22,348,232   6.6%
GDS Software Holdings, LLC Financial Services Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 12.52% Cash, 12/30/2026		 12/30/2021 $3,286,074   3,258,507   3,233,167   1.0%
GDS Software Holdings, LLC  (h) Financial Services Common Stock Class A Units 8/23/2018  250,000   250,000   515,469   0.2%
    Total Financial Services        26,284,338   26,262,169   7.8%
Ascend Software, LLC Financial Services Software First Lien Term Loan
(3M USD LIBOR+7.50%), 13.02% Cash, 12/15/2026		 12/15/2021 $6,000,000   5,955,857   5,914,200   1.8%
Ascend Software, LLC (j) Financial Services Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 13.02% Cash, 12/15/2026		 12/15/2021 $3,300,000   3,269,995   3,207,050   1.0%
    Total Financial Services Software        9,225,852   9,121,250   2.8%
Stretch Zone Franchising, LLC Health/Fitness Franchisor First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.29% Cash, 3/31/2028		 3/31/2023 $30,000,000   29,706,945   29,700,000   8.8%
Stretch Zone Franchising, LLC (j) Health/Fitness Franchisor Delayed Draw Term Loan
(3M USD TERM SOFR+7.00%), 12.29% Cash, 3/31/2028		 3/31/2023 $-   -   -   0.0%
Stretch Zone Franchising, LLC (h) Health/Fitness Franchisor Class A Preferred Units 3/31/2023  20,000   2,000,000   2,000,000   0.6%
    Total Health/Fitness Franchisor        31,706,945   31,700,000   9.4%
Axiom Parent Holdings, LLC (h) Healthcare Services Class A Preferred Units 6/19/2018  400,000   400,000   1,068,787   0.3%
ComForCare Health Care (d) Healthcare Services First Lien Term Loan
(3M USD LIBOR+6.25%), 11.77% Cash, 1/31/2025		 1/31/2017 $25,000,000   24,943,998   25,000,000   7.4%
    Total Healthcare Services        25,343,998   26,068,787   7.7%
HemaTerra Holding Company, LLC (d) Healthcare Software First Lien Term Loan
(1M USD TERM SOFR+8.25%), 13.42% Cash, 1/31/2027		 4/15/2019 $55,344,885   54,988,475   55,306,144   16.4%
HemaTerra Holding Company, LLC Healthcare Software Delayed Draw Term Loan
(1M USD TERM SOFR+8.25%), 13.42% Cash, 1/31/2027		 4/15/2019 $13,860,350   13,798,493   13,850,648   4.1%
TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019  2,487   2,816,693   4,720,933   1.4%
Procurement Partners, LLC Healthcare Software First Lien Term Loan
(3M USD TERM SOFR+6.50%), 11.79% Cash, 5/12/2026		 11/12/2020 $35,125,000   34,928,945   35,114,463   10.4%
Procurement Partners, LLC (j) Healthcare Software Delayed Draw Term Loan
(3M USD TERM SOFR+6.50%), 11.79% Cash, 5/12/2026		 11/12/2020 $9,300,000   9,226,665   9,297,210   2.8%
Procurement Partners Holdings LLC (h) Healthcare Software Class A Units 11/12/2020  571,219   571,219   814,625   0.2%
    Total Healthcare Software        116,330,490   119,104,023   35.3%
Roscoe Medical, Inc. (h) Healthcare Supply Common Stock 3/26/2014  5,081   508,077   -   0.0%
    Total Healthcare Supply        508,077   -   0.0%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		  Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests  5/16/2018   3,068   3,969,291   9,462,554   2.6%
GoReact Education Software 

First Lien Term Loan

(3M USD TERM SOFR+7.50%), 14.10% Cash/1.00% PIK, 1/17/2025

  1/17/2020  $8,047,007   8,006,292   8,036,546   2.2%
GoReact (j) Education Software 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.50%), 14.10% Cash/1.00% PIK, 1/17/2025

  1/18/2022  $1,260,935   1,260,935   1,259,296   0.3%
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units  8/25/2014   232,616   232,616   301,167   0.1%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units  3/6/2020   43,715   171,571   226,219   0.1%
Ready Education Education Software 

First Lien Term Loan

(3M USD TERM SOFR+6.00%), 11.40% Cash, 8/5/2027

  8/5/2022  $27,000,000   26,775,750   26,316,900   7.3%
    Total Education Software          40,416,455   45,602,682   12.6%
TG Pressure Washing Holdings, LLC (h) Facilities Maintenance Preferred Equity  8/12/2019   488,148   488,148   291,206   0.1%
    Total Facilities Maintenance          488,148   291,206   0.1%
Davisware, LLC Field Service Management 

First Lien Term Loan

(3M USD TERM SOFR+7.00%), 12.40% Cash, 7/31/2024

  9/6/2019  $6,000,000   5,982,340   5,964,600   1.6%
Davisware, LLC (j) Field Service Management 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.00%), 12.40% Cash, 7/31/2024

  9/6/2019  $3,977,790   3,960,409   3,954,321   1.1%
    Total Field Service Management          9,942,749   9,918,921   2.7%
GDS Software Holdings, LLC Financial Services 

First Lien Term Loan

(3M USD TERM SOFR+7.00%), 12.40% Cash, 12/30/2026

  12/30/2021  $22,713,926   22,611,867   22,377,760   6.2%
GDS Software Holdings, LLC Financial Services 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.00%), 12.40% Cash, 12/30/2026

  12/30/2021  $3,286,074   3,259,717   3,237,440   0.9%
GDS Software Holdings, LLC  (h) Financial Services Common Stock Class A Units  8/23/2018   250,000   250,000   528,107   0.1%
    Total Financial Services          26,121,584   26,143,307   7.2%
Ascend Software, LLC Financial Services Software 

First Lien Term Loan

(3M USD TERM SOFR+7.50%), 13.16% Cash, 12/15/2026

  12/15/2021  $6,000,000   5,956,894   5,964,600   1.6%
Ascend Software, LLC (j) Financial Services Software 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.50%), 13.16% Cash, 12/15/2026

  12/15/2021  $4,050,000   4,016,094   4,026,105   1.1%
    Total Financial Services Software          9,972,988   9,990,705   2.7%
Inspect Point Holdings, LLC Fire Inspection Business Software 

First Lien Term Loan

(1M USD TERM SOFR+6.50%), 11.83% Cash, 07/19/2028

  7/19/2023  $10,000,000   9,900,000   9,900,000   2.7%

 


 

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Book4Time, Inc. (a), (d) Hospitality/Hotel First Lien Term Loan
(3M USD LIBOR+7.50%), 13.02%, 12/22/2025		 12/22/2020 $3,136,517   3,119,385   3,136,517   0.9%
Book4Time, Inc. (a) Hospitality/Hotel Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 13.02%, 12/22/2025		 12/22/2020 $2,000,000   1,985,626   2,000,000   0.6%
Book4Time, Inc. (a), (h), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020  200,000   156,826   309,559   0.1%
Knowland Group, LLC (h), (k) Hospitality/Hotel Second Lien Term Loan
(3M USD TERM SOFR+8.00%), 16.44% Cash/3.00% PIK, 12/31/2024		 11/9/2018 $15,878,989   15,878,989   9,829,094   2.9%
Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan
(3M USD TERM SOFR+7.25%), 12.54% Cash, 11/15/2027		 4/27/2020 $23,000,000   22,810,619   22,864,300   6.8%
Sceptre Hospitality Resources, LLC (j) Hospitality/Hotel Delayed Draw Term Loan
(3M USD TERM SOFR+7.25%), 12.54% Cash, 11/15/2027		 9/2/2021 $-   -   -   0.0%
    Total Hospitality/Hotel        43,951,445   38,139,470   11.3%
Granite Comfort, LP (d) HVAC Services and Sales First Lien Term Loan
(3M USD TERM SOFR+7.82%), 13.11% Cash, 11/16/2025		 11/16/2020 $42,785,000   42,513,752   42,446,999   12.6%
Granite Comfort, LP (j) HVAC Services and Sales Delayed Draw Term Loan
(3M USD TERM SOFR+7.82%), 13.11% Cash, 11/16/2025		 11/16/2020 $26,143,125   25,816,243   25,936,594   7.7%
    Total HVAC Services and Sales        68,329,995   68,383,593   20.3%
Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan
(3M USD LIBOR+6.50%), 12.02% Cash, 3/6/2025		 3/6/2013 $3,089,986   3,089,986   3,089,987   0.9%
Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015  343   -   6,234,823   1.8%
    Total Industrial Products        3,089,986   9,324,810   2.7%
AgencyBloc, LLC Insurance Software First Lien Term Loan
(1M USD BSBY+8.00%), 13.11% Cash, 10/1/2026		 10/1/2021 $13,435,568   13,346,649   13,428,850   4.0%
Panther ParentCo LLC (h) Insurance Software Class A Units 10/1/2021  2,500,000   2,500,000   3,577,353   1.1%
    Total Insurance Software        15,846,649   17,006,203   5.1%
LogicMonitor, Inc. (d) IT Services First Lien Term Loan
(3M USD TERM SOFR+6.50%), 11.79% Cash, 5/17/2026		 3/20/2020 $43,000,000   42,967,165   43,000,000   12.7%
      Total IT Services        42,967,165   43,000,000   12.7%
ActiveProspect, Inc. (d) Lead Management Software First Lien Term Loan
(3M USD TERM SOFR+6.00%), 11.49% Cash, 8/8/2027		 8/8/2022 $12,000,000   11,910,143   12,120,000   3.6%
ActiveProspect, Inc. (j) Lead Management Software Delayed Draw Term Loan
(3M USD TERM SOFR+6.00%), 11.49% Cash, 8/8/2027		 8/8/2022 $-   -   -   0.0%
    Total Lead Management Software        11,910,143   12,120,000   3.6%
Centerbase, LLC Legal Software First Lien Term Loan
(1M USD TERM SOFR+7.75%), 12.92% Cash, 1/18/2027		 1/18/2022 $21,193,920   21,017,421   20,700,102   6.1%
    Total Legal Software        21,017,421   20,700,102   6.1%
Madison Logic, Inc. (d) Marketing Orchestration Software First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.29% Cash, 12/30/2028		 12/10/2021 $19,000,000   18,633,576   18,715,000   5.5%
    Total Marketing Orchestration Software        18,633,576   18,715,000   5.5%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		  Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Inspect Point Holdings, LLC (j) Fire Inspection Business Software 

First Lien Term Loan

(1M USD TERM SOFR+6.50%), 11.83% Cash, 07/19/2028

  7/19/2023  $-   -   -   0.0%
    Total Fire Inspection Business Software          9,900,000   9,900,000   2.7%
Stretch Zone Franchising, LLC Health/Fitness Franchisor 

First Lien Term Loan

(3M USD TERM SOFR+7.00%), 12.40% Cash, 3/31/2028

  3/31/2023  $30,000,000   29,710,838   29,700,000   8.2%
Stretch Zone Franchising, LLC (j) Health/Fitness Franchisor 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.00%), 12.40% Cash, 3/31/2028

  3/31/2023  $-   -   -   0.0%
Stretch Zone Franchising, LLC (h) Health/Fitness Franchisor Class A Units  3/31/2023   20,000   2,000,000   2,000,000   0.6%
    Total Health/Fitness Franchisor          31,710,838   31,700,000   8.8%
Axiom Parent Holdings, LLC (h) Healthcare Services Class A Preferred Units  6/19/2018   400,000   400,000   1,105,987   0.3%
ComForCare Health Care (d) Healthcare Services 

First Lien Term Loan

(3M USD TERM SOFR+6.25%), 11.65% Cash, 1/31/2025

  1/31/2017  $25,000,000   24,949,936   25,000,000   6.9%
    Total Healthcare Services          25,349,936   26,105,987   7.2%
HemaTerra Holding Company, LLC (d) Healthcare Software 

First Lien Term Loan

(1M USD TERM SOFR+8.25%), 13.58% Cash, 1/31/2027

  4/15/2019  $55,205,828   54,856,742   55,167,183   15.2%
HemaTerra Holding Company, LLC Healthcare Software 

Delayed Draw Term Loan

(1M USD TERM SOFR+8.25%), 13.58% Cash, 1/31/2027

  4/15/2019  $13,825,525   13,768,029   13,815,847   3.8%
TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests  4/15/2019   2,487   2,816,693   4,902,746   1.4%
Procurement Partners, LLC Healthcare Software 

First Lien Term Loan

(3M USD TERM SOFR+6.50%), 11.90% Cash, 5/12/2026

  11/12/2020  $35,125,000   34,939,652   35,135,538   9.7%
Procurement Partners, LLC (j) Healthcare Software 

Delayed Draw Term Loan

(3M USD TERM SOFR+6.50%), 11.90% Cash, 5/12/2026

  11/12/2020  $10,300,000   10,222,017   10,303,090   2.8%
Procurement Partners Holdings LLC (h) Healthcare Software Class A Units  11/12/2020   571,219   571,219   783,511   0.2%
    Total Healthcare Software          117,174,352   120,107,915   33.1%
Roscoe Medical, Inc. (h) Healthcare Supply Common Stock  3/26/2014   5,081   508,077   -   0.0%
    Total Healthcare Supply          508,077   -   0.0%

 


 

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
ARC Health OpCo LLC (d) Mental Healthcare Services First Lien Term Loan
(3M USD TERM SOFR+8.48%), 13.78% Cash, 8/5/2027		 8/5/2022 $6,500,000   6,430,015   6,440,200   1.9%
ARC Health OpCo LLC (d), (j) Mental Healthcare Services Delayed Draw Term Loan
(3M USD TERM SOFR+8.48%), 13.78% Cash, 8/5/2027		 8/5/2022 $13,036,750   12,880,708   12,916,812   3.8%
ARC Health OpCo LLC (h) Mental Healthcare Services Class A Preferred Units 8/5/2022  3,818,400   4,169,599   4,047,510   1.2%
    Total Mental Healthcare Services        23,480,322   23,404,522   6.9%
Chronus LLC Mentoring Software First Lien Term Loan
(3M USD TERM SOFR+5.25%), 10.69% Cash, 8/26/2026		 8/26/2021 $15,000,000   14,896,420   14,802,000   4.4%
Chronus LLC Mentoring Software First Lien Term Loan
(3M USD TERM SOFR+6.00%), 11.44% Cash, 8/26/2026		 8/26/2021 $5,000,000   4,955,341   4,934,000   1.5%
Chronus LLC (h) Mentoring Software Series A Preferred Stock 8/26/2021  3,000   3,000,000   3,296,744   1.0%
    Total Mentoring Software        22,851,761   23,032,744   6.9%
Omatic Software, LLC Non-profit Services First Lien Term Loan
(3M USD TERM SOFR+8.00%), 14.55% Cash/1.00% PIK, 6/30/2024		 5/29/2018 $14,158,121   14,124,131   14,108,567   4.2%
    Total Non-profit Services        14,124,131   14,108,567   4.2%
Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note
(3M USD TERM SOFR+7.50%), 12.79% Cash, 12/31/2025		 12/28/2012 $6,000,000   5,982,861   5,970,600   1.8%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests, Expires 12/31/2025 12/28/2012  49,318   400,000   624,828   0.2%
    Total Office Supplies        6,382,861   6,595,428   2.0%
Buildout, Inc. (d) Real Estate Services First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.39% Cash, 7/9/2025		 7/9/2020 $14,000,000   13,931,784   13,778,800   4.1%
Buildout, Inc. Real Estate Services Delayed Draw Term Loan
(3M USD TERM SOFR+7.00%), 12.39% Cash, 7/9/2025		 2/12/2021 $38,500,000   38,281,023   37,891,700   11.2%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020  1,250   1,372,557   1,422,696   0.4%
    Total Real Estate Services        53,585,364   53,093,196   15.7%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		  Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Book4Time, Inc. (a), (d) Hospitality/Hotel 

First Lien Term Loan

(3M USD TERM SOFR+7.50%), 12.90%, 12/22/2025

  12/22/2020  $3,136,517   3,120,142   3,136,517   0.9%
Book4Time, Inc. (a) Hospitality/Hotel 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.50%), 12.90%, 12/22/2025

  12/22/2020  $2,000,000   1,987,041   2,000,000   0.6%
Book4Time, Inc. (a), (h), (i) Hospitality/Hotel Class A Preferred Shares  12/22/2020   200,000   156,826   353,429   0.1%
Knowland Group, LLC (h), (k) Hospitality/Hotel 

Second Lien Term Loan

(3M USD TERM SOFR+8.00%), 16.55% Cash/3.00% PIK, 12/31/2024

  11/9/2018  $15,878,989   15,878,989   9,754,463   2.7%
Sceptre Hospitality Resources, LLC Hospitality/Hotel 

First Lien Term Loan

(3M USD TERM SOFR+7.25%), 12.65% Cash, 11/15/2027

  4/27/2020  $23,000,000   22,813,986   22,889,600   6.3%
Sceptre Hospitality Resources, LLC (j) Hospitality/Hotel 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.25%), 12.65% Cash, 11/15/2027

  9/2/2021  $-   -   -   0.0%
    Total Hospitality/Hotel          43,956,984   38,134,009   10.6%
Granite Comfort, LP (d) HVAC Services and Sales 

First Lien Term Loan

(3M USD TERM SOFR+7.82%), 13.22% Cash, 11/16/2025

  11/16/2020  $43,000,000   42,744,942   42,703,300   11.8%
Granite Comfort, LP (j) HVAC Services and Sales 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.82%), 13.22% Cash, 11/16/2025

  11/16/2020  $26,250,000   25,947,682   26,068,875   7.2%
    Total HVAC Services and Sales          68,692,624   68,772,175   19.0%
Vector Controls Holding Co., LLC (d) Industrial Products 

First Lien Term Loan

(3M USD TERM SOFR+6.50%), 11.75% Cash, 3/6/2025

  3/6/2013  $1,907,586   1,907,586   1,907,586   0.5%
Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027  5/31/2015   343   -   6,660,427   1.8%
    Total Industrial Products          1,907,586   8,568,013   2.3%
AgencyBloc, LLC Insurance Software 

First Lien Term Loan

(1M USD BSBY+8.00%), 13.38% Cash, 10/1/2026

  10/1/2021  $13,401,818   13,316,943   13,401,818   3.7%
Panther ParentCo LLC (h) Insurance Software Class A Units  10/1/2021   2,500,000   2,500,000   3,799,793   1.0%
    Total Insurance Software          15,816,943   17,201,611   4.7%
LogicMonitor, Inc. (d) IT Services 

First Lien Term Loan

(3M USD TERM SOFR+6.50%), 11.90% Cash, 5/17/2026

  3/20/2020   $43,000,000   42,967,165   43,000,000    11.9 %
    Total IT Services          42,967,165   43,000,000   11.9%
ActiveProspect, Inc. (d) Lead Management Software 

First Lien Term Loan

(3M USD TERM SOFR+6.00%), 11.60% Cash, 8/8/2027

  8/8/2022  $12,000,000   11,911,810   12,120,000   3.3%

 


 

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Wellspring Worldwide Inc. Research Software First Lien Term Loan
(1M USD BSBY+7.25%), 12.36% Cash, 6/27/2027		 6/27/2022 $9,600,000   9,510,918   9,553,920   2.8%
Archimedes Parent LLC (h) Research Software Class A Common Units 6/27/2022  1,125,160   1,125,160   1,128,926   0.3%
    Total Research Software        10,636,078   10,682,846   3.1%
LFR Chicken LLC Restaurant First Lien Term Loan
(1M USD TERM SOFR+7.00%), 12.17% Cash, 11/19/2026		 11/19/2021 $12,000,000   11,914,575   11,898,000   3.5%
LFR Chicken LLC (j) Restaurant Delayed Draw Term Loan
(1M USD TERM SOFR+7.00%), 12.17% Cash, 11/19/2026		 11/19/2021 $9,000,000   8,932,246   8,923,500   2.6%
LFR Chicken LLC (h) Restaurant Series B Preferred Units 11/19/2021  497,183   1,000,000   1,181,928   0.4%
TMAC Acquisition Co., LLC Restaurant Unsecured Term Loan
8.00% PIK, 3/1/2024		 3/1/2018 $3,217,657   3,217,657   2,959,889   0.9%
    Total Restaurant        25,064,478   24,963,317   7.4%
JobNimbus LLC Roofing Contractor Software First Lien Term Loan
(1M USD TERM SOFR+8.75%), 14.02% Cash, 9/20/2026		 3/28/2023 $10,000,000   9,903,578   9,900,000   2.9%
    Total Roofing Contractor Software        9,903,578   9,900,000   2.9%
Pepper Palace, Inc. (d) Specialty Food Retailer First Lien Term Loan
(3M USD LIBOR+6.25%), 11.77% Cash, 6/30/2026		 6/30/2021 $33,405,000   33,180,924   23,416,905   6.9%
Pepper Palace, Inc. (j) Specialty Food Retailer Delayed Draw Term Loan
(3M USD LIBOR+6.25%), 11.77% Cash, 6/30/2026		 6/30/2021 $-   -   -   0.0%
Pepper Palace, Inc. (j) Specialty Food Retailer Revolving Credit Facility
(3M USD LIBOR+6.25%), 11.77% Cash, 6/30/2026		 6/30/2021 $-   -   -   0.0%
Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest
(Series A)		 6/30/2021  1,000,000   1,000,000   -   0.0%
Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest
(Series B)		 6/30/2021  197,035   197,035   -   0.0%
    Total Specialty Food Retailer        34,377,959   23,416,905   6.9%
ArbiterSports, LLC (d) Sports Management First Lien Term Loan
(3M USD TERM SOFR+6.50%), 11.79% Cash, 2/21/2025		 2/21/2020 $26,000,000   25,915,459   25,807,600   7.6%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		  Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
ActiveProspect, Inc. (j) Lead Management Software 

Delayed Draw Term Loan

(3M USD TERM SOFR+6.00%), 11.60% Cash, 8/8/2027

  8/8/2022  $-   -   -   0.0%
    Total Lead Management Software          11,911,810   12,120,000   3.3%
Centerbase, LLC Legal Software 

First Lien Term Loan

(1M USD TERM SOFR+7.75%), 13.08% Cash, 1/18/2027

  1/18/2022  $21,140,400   20,972,034   20,711,250   5.7%
    Total Legal Software          20,972,034   20,711,250   5.7%
Madison Logic, Inc. (d) Marketing Orchestration Software 

First Lien Term Loan

(3M USD TERM SOFR+7.00%), 12.40% Cash, 12/30/2028

    12/10/2021   $18,952,500   18,615,176   18,588,612    5.1 %
    Total Marketing Orchestration Software          18,615,176   18,588,612   5.1%
ARC Health OpCo LLC (d) Mental Healthcare Services 

First Lien Term Loan

(3M USD TERM SOFR+8.48%), 13.88% Cash, 8/5/2027

  8/5/2022  $6,500,000   6,431,969   6,538,350   1.8%
ARC Health OpCo LLC (d), (j) Mental Healthcare Services 

Delayed Draw Term Loan

(3M USD TERM SOFR+8.48%), 13.88% Cash, 8/5/2027

  8/5/2022  $18,241,000   18,019,497   18,348,622   5.1%
ARC Health OpCo LLC (h) Mental Healthcare Services Class A Preferred Units  8/5/2022   3,818,400   4,169,599   4,238,424   1.2%
    Total Mental Healthcare Services          28,621,065   29,125,396   8.1%
Chronus LLC Mentoring Software 

First Lien Term Loan

(3M USD TERM SOFR+5.25), 10.80% Cash, 8/26/2026

  8/26/2021  $15,000,000   14,901,460   14,821,500   4.1%
Chronus LLC Mentoring Software 

First Lien Term Loan

(3M USD TERM SOFR+6.00), 11.55% Cash, 8/26/2026

  8/26/2021  $5,000,000   4,957,069   4,940,500   1.4%
Chronus LLC (h) Mentoring Software Series A Preferred Stock  8/26/2021   3,000   3,000,000   2,953,888   0.8%
    Total Mentoring Software          22,858,529   22,715,888   6.3%
Omatic Software, LLC Non-profit Services 

First Lien Term Loan

(3M USD TERM SOFR+8.00%), 14.66% Cash/1.00% PIK, 6/30/2024

  5/29/2018  $14,194,333   14,166,229   14,285,177   3.9%
    Total Non-profit Services          14,166,229   14,285,177   3.9%
Emily Street Enterprises, L.L.C. Office Supplies 

Senior Secured Note

(3M USD TERM SOFR+7.50%), 12.90% Cash, 12/31/2025

  12/28/2012  $6,000,000   5,989,877   6,000,000   1.7%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests, Expires 12/31/2025  12/28/2012   49,318   400,000   866,521   0.2%
    Total Office Supplies          6,389,877   6,866,521   1.9%
Buildout, Inc. (d) Real Estate Services 

First Lien Term Loan

(3M USD TERM SOFR+7.00%), 12.50% Cash, 7/9/2025

  7/9/2020  $14,000,000   13,935,536   13,813,800   3.8%
Buildout, Inc. Real Estate Services 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.00%), 12.50% Cash, 7/9/2025

  2/12/2021  $38,500,000   38,295,389   37,987,950   10.5%

 


 

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
ArbiterSports, LLC Sports Management Delayed Draw Term Loan
(3M USD TERM SOFR+6.50%), 11.79% Cash, 2/21/2025		 2/21/2020 $1,000,000   1,000,000   992,600   0.3%
    Total Sports Management        26,915,459   26,800,200   7.9%
Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014  100,000   100,000   2,123,136   0.6%
    Total Staffing Services        100,000   2,123,136   0.6%
JDXpert Talent Acquisition Software First Lien Term Loan
(3M USD LIBOR+8.50%), 14.02% Cash, 5/2/2027		 5/2/2022 $6,000,000   5,949,642   6,048,600   1.8%
JDXpert (j) Talent Acquisition Software Delayed Draw Term Loan
(3M USD LIBOR+8.50%), 14.02% Cash, 5/2/2027		 5/2/2022 $1,000,000   990,270   1,008,100   0.3%
Jobvite, Inc. (d) Talent Acquisition Software First Lien Term Loan
(3M USD TERM SOFR+8.00%), 13.29% Cash, 8/5/2028		 8/5/2022 $20,000,000   19,872,841   19,948,000   6.1%
    Total Talent Acquisition Software        26,812,753   27,004,700   8.2%
VetnCare MSO, LLC (j) Veterinary Services Delayed Draw Term Loan
(3M USD TERM SOFR+5.75%), 11.04% Cash, 5/12/2028		 5/12/2023 $500,000   495,055   495,000   0.1%
    Total Veterinary Services        495,055   495,000   0.1%
Sub Total Non-control/Non-affiliate investments          934,686,593   941,021,051   278.9%
Affiliate investments - 12.7% (b)                    
ETU Holdings, Inc. (f) Corporate Education Software First Lien Term Loan
(3M USD LIBOR+9.00%), 14.52% Cash, 8/18/2027		 8/18/2022 $7,000,000   6,939,743   6,992,300   2.1%
ETU Holdings, Inc. (f) Corporate Education Software Second Lien Term Loan
15.00% PIK, 2/18/2028		 8/18/2022 $5,482,861   5,438,840   5,356,206   1.6%
ETU Holdings, Inc. (f), (h) Corporate Education Software Series A Preferred Units 8/18/2022  3,000,000   3,000,000   2,904,070   0.9%
    Total Corporate Education Software        15,378,583   15,252,576   4.6%
Modis Dental Partners OpCo, LLC (f) Dental Practice Management First Lien Term Loan
(1M USD LIBOR+9.50%), 14.67% Cash, 4/18/2028		 4/18/2023 $7,000,000   6,896,854   6,895,000   2.0%
Modis Dental Partners OpCo, LLC (f), (j) Dental Practice Management Delayed Draw Term Loan
(1M USD LIBOR+9.50%), 14.67% Cash, 4/18/2028		 4/18/2023 $-   -   -   0.0%
Modis Dental Partners OpCo, LLC (f) Dental Practice Management Class A Preferred Units 4/18/2023  1,950,000   1,950,000   1,950,000   0.6%
    Total Dental Practice Management        8,846,854   8,845,000   2.6%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		  Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests  7/9/2020   1,250   1,372,557   1,459,433   0.4%
    Total Real Estate Services          53,603,482   53,261,183   14.7%
Wellspring Worldwide Inc. Research Software 

First Lien Term Loan

(1M USD BSBY+7.25%), 12.63% Cash, 6/27/2027

  6/27/2022  $9,600,000   9,513,779   9,456,000   2.6%
Archimedes Parent LLC (h) Research Software Class A Common Units  6/27/2022   1,125,160   1,125,160   1,090,037   0.3%
    Total Research Software          10,638,939   10,546,037   2.9%
LFR Chicken LLC Restaurant 

First Lien Term Loan

(1M USD TERM SOFR+7.00%), 12.33% Cash, 11/19/2026

  11/19/2021  $12,000,000   11,917,079   11,914,800   3.3%
LFR Chicken LLC (j) Restaurant 

Delayed Draw Term Loan

(1M USD TERM SOFR+7.00%), 12.33% Cash, 11/19/2026

  11/19/2021  $9,000,000   8,937,166   8,936,100   2.5%
LFR Chicken LLC (h) Restaurant Series B Preferred Units  11/19/2021   497,183   1,000,000   1,234,926   0.3%
    Total Restaurant          21,854,245   22,085,826   6.1%
JobNimbus LLC Roofing Contractor Software 

First Lien Term Loan

(1M USD TERM SOFR+8.75%), 14.18% Cash, 9/20/2026

  3/28/2023  $9,975,000   9,882,374   9,875,250   2.7%
    Total Roofing Contractor Software          9,882,374   9,875,250   2.7%
Pepper Palace, Inc. (d),(k) Specialty Food Retailer 

First Lien Term Loan

(3M USD TERM SOFR+6.25%), 11.80% Cash, 6/30/2026

  6/30/2021  $33,320,000   33,111,625   7,940,156   2.2%
Pepper Palace, Inc. (j),(k) Specialty Food Retailer 

Delayed Draw Term Loan

(3M USD TERM SOFR+6.25%), 11.80% Cash, 6/30/2026

  6/30/2021  $-   -   -   0.0%
Pepper Palace, Inc. (j),(k) Specialty Food Retailer 

Revolving Credit Facility

(3M USD TERM SOFR+6.25%), 11.80% Cash, 6/30/2026

  6/30/2021  $-   -   -   0.0%
Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest (Series A)  6/30/2021   1,000,000   1,000,000   -   0.0%
Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest (Series B)  6/30/2021   197,035   197,035   -   0.0%
    Total Specialty Food Retailer          34,308,660   7,940,156   2.2%
ArbiterSports, LLC (d) Sports Management 

First Lien Term Loan

(3M USD TERM SOFR+6.50%), 11.90% Cash, 2/21/2025

  2/21/2020  $26,000,000   25,922,927   25,841,400   7.1%
ArbiterSports, LLC Sports Management 

Delayed Draw Term Loan

(3M USD TERM SOFR+6.50%), 11.90% Cash, 2/21/2025

  2/21/2020  $1,000,000   1,000,000   993,900   0.3%
    Total Sports Management          26,922,927   26,835,300   7.4%
Avionte Holdings, LLC (h) Staffing Services Class A Units  1/8/2014   100,000   100,000   2,111,229   0.6%
    Total Staffing Services          100,000   2,111,229   0.6%

 


 

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Axero Holdings, LLC (f) Employee Collaboration Software First Lien Term Loan
(3M USD TERM SOFR+8.00%), 13.44% Cash, 6/30/2026		 6/30/2021 $5,500,000   5,461,912   5,513,750   1.6%
Axero Holdings, LLC (f) Employee Collaboration Software Delayed Draw Term Loan
(3M USD TERM SOFR+8.00%), 13.44% Cash, 6/30/2026		 6/30/2021 $1,100,000   1,091,249   1,102,750   0.3%
Axero Holdings, LLC (f), (j) Employee Collaboration Software Revolving Credit Facility
(3M USD TERM SOFR+8.00%), 13.44% Cash, 6/30/2026		 2/3/2022 $-   -   -   0.0%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series A Preferred Units 6/30/2021  2,000,000   2,000,000   2,575,000   0.8%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series B Preferred Units 6/30/2021  2,000,000   2,000,000   3,829,000   1.1%
    Total Employee Collaboration Software        10,553,161   13,020,500   3.8%
Alpha Aesthetics Partners OpCo, LLC (d) (f) Healthcare Services First Lien Term Loan
(1M USD TERM SOFR+10.00%), 15.17% Cash, 3/20/2028		 3/20/2023 $3,900,000   3,842,711   3,841,500   1.2%
Alpha Aesthetics Partners OpCo, LLC (f), (j) Healthcare Services Delayed Draw Term Loan
(1M USD TERM SOFR+10.00%), 15.17% Cash, 3/20/2028		 3/20/2023 $-   -   -   0.0%
Alpha Aesthetics Partners OpCo, LLC (f), (h) Healthcare Services Class A Preferred Units 3/20/2023  1,850,000   1,850,000   1,850,000   0.5%
    Total Healthcare Services        5,692,711   5,691,500   1.7%
Sub Total Affiliate investments          40,471,309   42,809,576   12.7%
Control investments - 29.7% (b)                    
Netreo Holdings, LLC (g) IT Services First Lien Term Loan
(3M USD LIBOR +6.50%), 14.02% Cash/2.00% PIK
12/31/2025		 7/3/2018 $5,567,388   5,551,736   5,364,735   1.6%
Netreo Holdings, LLC (d), (g) IT Services Delayed Draw Term Loan
(3M USD LIBOR +6.50%), 14.02% Cash/2.00% PIK,
12/31/2025		 5/26/2020 $22,224,213   22,137,538   21,415,251   6.3%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018  4,600,677   8,344,500   14,214,290   4.2%
    Total IT Services        36,033,774   40,994,276   12.1%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		  Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
JDXpert Talent Acquisition Software 

First Lien Term Loan

(3M USD TERM SOFR+8.50%), 14.16% Cash, 5/2/2027

  5/2/2022  $6,000,000   5,950,936   6,102,000   1.7%
JDXpert (j) Talent Acquisition Software 

Delayed Draw Term Loan

(3M USD TERM SOFR+8.50%), 14.16% Cash, 5/2/2027

  5/2/2022  $1,000,000   990,581   1,017,000   0.3%
Jobvite, Inc. (d) Talent Acquisition Software 

First Lien Term Loan

(3M USD TERM SOFR+8.00%), 13.40% Cash, 8/5/2028

  8/5/2022  $20,000,000   19,872,450   19,964,000   5.7%
    Total Talent Acquisition Software          26,813,967   27,083,000   7.7%
VetnCare MSO, LLC (j) Veterinary Services 

Delayed Draw Term Loan

(3M USD TERM SOFR+5.75%), 11.15% Cash, 5/12/2028

  5/12/2023  $500,000   495,295   495,000   0.1%
    Total Veterinary Services          495,295   495,000   0.1%
Sub Total Non-control/Non-affiliate investments          

953,247,363

   

947,924,370

   

261.8%

 
Affiliate investments - 12.9% (b)                        
ETU Holdings, Inc. (f) Corporate Education Software 

First Lien Term Loan

(3M USD TERM SOFR+9.00%), 14.55% Cash, 8/18/2027

  8/18/2022  $7,000,000   6,940,505   6,960,800   1.9%
ETU Holdings, Inc. (f) Corporate Education Software 

Second Lien Term Loan

15.00% PIK, 2/18/2028

  8/18/2022  $5,690,752   5,647,686   5,571,816   1.5%
ETU Holdings, Inc. (f), (h) Corporate Education Software Series A Preferred Units  8/18/2022   3,000,000   3,000,000   2,541,168   0.7%
    Total Corporate Education Software          15,588,191   15,073,784   4.1%
Modis Dental Partners OpCo, LLC (f) Dental Practice Management 

First Lien Term Loan

(1M USD TERM SOFR+9.50%), 14.83% Cash, 4/18/2028

  4/18/2023  $7,000,000   6,898,754   6,895,000   1.9%
Modis Dental Partners OpCo, LLC (j)(f) Dental Practice Management 

Delayed Draw Term Loan

(1M USD TERM SOFR+9.50%), 14.83% Cash, 4/18/2028

  4/18/2023  $-   -   -   0.0%
Modis Dental Partners OpCo, LLC (f) Dental Practice Management Class A Preferred Units  4/18/2023   1,950,000   1,950,000   1,950,000   0.5%
    Total Dental Practice Management          8,848,754   8,845,000   2.4%
Axero Holdings, LLC (f) Employee Collaboration Software 

First Lien Term Loan

(3M USD TERM SOFR+8.00%), 13.55% Cash, 6/30/2026

  6/30/2021  $5,500,000   5,462,973   5,515,950   1.5%
Axero Holdings, LLC (f) Employee Collaboration Software 

Delayed Draw Term Loan

(3M USD TERM SOFR+8.00%), 13.55% Cash, 6/30/2026

  6/30/2021  $1,100,000   1,091,537   1,103,190   0.3%
Axero Holdings, LLC (f), (j) Employee Collaboration Software 

Revolving Credit Facility

(3M USD TERM SOFR+8.00%), 13.55% Cash, 6/30/2026

  2/3/2022  $-   -   -   0.0%

 


 

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		 Cost Fair
Value (c)		 % of
Net Assets		  Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		 Cost Fair
Value (c)		 % of
Net Assets		 
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series A Preferred Units  6/30/2021   2,000,000   2,000,000   2,650,000   0.7%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series B Preferred Units  6/30/2021   2,000,000   2,000,000   4,185,000   1.2%
   Total Employee Collaboration Software         10,554,510   13,454,140   3.7%
Alpha Aesthetics Partners OpCo, LLC (f) Healthcare Services 

First Lien Term Loan

(1M USD TERM SOFR+9.99%), 15.32% Cash, 3/20/2028

  3/20/2023  $3,900,000   3,843,657   3,841,500   1.2%
Alpha Aesthetics Partners OpCo, LLC (f)(j) Healthcare Services 

Delayed Draw Term Loan

(1M USD TERM SOFR+9.99%), 15.32% Cash, 3/20/2028

  3/20/2023  $3,755,496   3,700,560   3,699,163   1.0%
Alpha Aesthetics Partners OpCo, LLC (h)(f) Healthcare Services Class A Preferred Units  3/20/2023   1,850,000   1,850,000   1,850,000   0.5%
   Total Healthcare Services         9,394,217   9,390,663   2.7%
Sub Total Affiliate investmentsSub Total Affiliate investments         44,385,672   46,763,587   12.9%
Control investments - 28.9% (b)Control investments - 28.9% (b)                   
Netreo Holdings, LLC (g) IT Services 

First Lien Term Loan

(3M USD TERM SOFR +6.50%), 14.05% Cash/2.00% PIK 12/31/2025

  7/3/2018  $5,595,892   5,581,036   5,499,083   1.5%
Netreo Holdings, LLC (d), (g) IT Services 

Delayed Draw Term Loan

(3M USD TERM SOFR +6.50%), 14.05% Cash/2.00% PIK, 12/31/2025

  5/26/2020  $22,337,997   22,255,700   21,951,549   6.1%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Units  7/3/2018   4,600,677   8,344,500   13,804,373   3.8%
   Total IT Services         36,181,236   41,255,005   11.4%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities
0.00%, 4/20/2033		 1/22/2008 $111,000,000   27,157,923   13,716,348   4.1% Structured Finance Securities 

Other/Structured Finance Securities

0.00%, 4/20/2033

  1/22/2008  $111,000,000   25,119,531   15,207,152   4.2%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities
(3M USD LIBOR+10.00%), 15.52%, 4/20/2033		 8/9/2021 $9,375,000   9,375,000   8,836,222   2.6% Structured Finance Securities 

Other/Structured Finance Securities

(3M USD TERM SOFR+10.00%), 15.40%, 4/20/2033

  8/9/2021  $9,375,000   9,375,000   8,952,845   2.5%
Saratoga Investment Corp. Senior Loan Fund 2022-1, Ltd. Class E Note (a), (g) Structured Finance Securities Other/Structured Finance Securities
(3M USD TERM SOFR+8.55%), 13.84%, 10/20/2033		 10/28/2022 $12,250,000   11,392,500   11,353,537   3.4% Structured Finance Securities 

Other/Structured Finance Securities

(3M USD TERM SOFR+8.55%), 13.95%, 10/20/2033

  10/28/2022  $12,250,000   11,392,500   11,449,475   3.2%
   Total Structured Finance Securities      47,925,423   33,906,107   10.1%   Total Structured Finance Securities         45,887,031   35,609,472   9.9%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Unsecured Loan
10.00%, 10/20/2033		 2/17/2022 $17,618,954   17,618,954   17,618,954   5.2% Investment Fund 

Unsecured Loan

10.00%, 10/20/2033

  2/17/2022  $17,618,954   17,618,954   17,618,954   4.9%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (h) Investment Fund Membership Interest 2/17/2022  17,583,486   17,583,486   7,748,164   2.3% Investment Fund Membership Interest  2/17/2022   17,583,486   17,583,486   9,773,372   2.7%
   Total Investment Fund      35,202,440   25,367,118   7.5%   Total Investment Fund         35,202,440   27,392,326   7.6%
Sub Total Control investmentsSub Total Control investments        119,161,637   100,267,501   29.7%Sub Total Control investments         117,270,707   104,256,803   28.9%
TOTAL INVESTMENTS - 321.3% (b)       $1,094,319,539  $1,084,098,128   321.3%
TOTAL INVESTMENTS - 303.6% (b)TOTAL INVESTMENTS - 303.6% (b)        $1,114,903,742  $1,098,944,760   303.6%

  Number of Shares  Cost  Fair
Value		  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve
accounts - 15.8% (b)		                
U.S. Bank Money Market (l)  53,153,165  $53,153,165  $53,153,165   15.8%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  53,153,165  $53,153,165  $53,153,165   15.8%

(1)Securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and are restricted securities.
(a)Represents an investment that is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, as amended (the 1940 Act”). As of May 31, 2023, non-qualifying assets represent 7.2% of the Company’s portfolio at fair value. As a BDC, the Company generally has to invest at least 70% of its total assets in qualifying assets.
(b)Percentages are based on net assets of $337,450,848 as of May 31, 2023.
(c)Because there is no “readily available market quotations” (as defined in the 1940 Act) for these investments, the fair values of these investments were determined using significant unobservable inputs and approved in good faith by our board of directors. These investments have been included as Level 3 in the Fair Value Hierarchy (see Note 3 to the consolidated financial statements).
(d)These securities are either fully or partially pledged as collateral under the Company’s senior secured revolving credit facility (see Note 8 to the consolidated financial statements).
(e)This investment does not have a stated interest rate that is payable thereon. As a result, the 0.00% interest rate in the table above represents the effective interest rate currently earned on the investment cost and is based on the current cash interest and other income generated by the investment.
(f)As defined in the 1940 Act, this portfolio company is an “affiliate” as we own between 5.0% and 25.0% of the outstanding voting securities. Transactions during the three months ended May 31, 2023 in which the issuer was an affiliate are as follows:

 


 

 

Company Purchases  Sales  Total Interest from Investments  Management Fee Income  Net Realized
Gain (Loss) from Investments		  Net Change in Unrealized Appreciation (Depreciation) 
Axero Holdings, LLC $-  $      -  $222,826  $             -  $             -  $(33,070)
ETU Holdings, Inc.  -   -   467,851   -   -   (209,149)
Modis Dental Partners OpCo, LLC  8,845,000   -   124,995   -   -   (1,854)
Alpha Aesthetics Partners OpCo, LLC  5,691,500   -   119,003   -   -   (1,211)
Total $14,536,500  $-  $934,675  $-  $-  $(245,284)

(g)As defined in the 1940 Act, we “control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the year ended May 31, 2023 in which the issuer was both an affiliate and a portfolio company that we control are as follows:

Company Purchases  Sales  Total Interest from Investments  Management Fee Income  Net Realized
Gain (Loss) from Investments		  Net Change in Unrealized Appreciation (Depreciation) 
Netreo Holdings, LLC $           -  $        -  $962,758  $-  $              -  $(3,319,711)
Saratoga Investment Corp. CLO 2013-1, Ltd.  -   -   -   816,788   -   (5,674,249)
Saratoga Investment Corp. Senior Loan Fund 2022-1, Ltd. Class E Note  -   -   405,005   -   -   (958)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note  -   -   359,610   -   -   4,816 
Saratoga Senior Loan Fund I JV, LLC  -   -   460,050   -   -   - 
Saratoga Senior Loan Fund I JV, LLC  -   -   -   -   -   (5,358,787)
Total $-  $-  $2,187,423  $816,788  $-  $(14,348,889)

(h)Non-income producing at May 31, 2023.
(i)Includes securities issued by an affiliate of the company.
(j)All or a portion of this investment has an unfunded commitment as of May 31, 2023. (See Note 9 to the consolidated financial statements).
(k)As of May 31, 2023, the investment was on non-accrual status. The fair value of these investments was approximately $9.8 million, which represented 0.9% of the Company’s portfolio (see Note 2 to the consolidated financial statements).
(l)Included within cash and cash equivalents and cash and cash equivalents, reserve accounts in the Company’s consolidated statements of assets and liabilities as of May 31, 2023.

BSBY - Bloomberg Short-Term Bank Yield

LIBOR - London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

1M USD BSBY - The 1 month USD BSBY rate as of May 31, 2023 was 5.11%.

1M USD LIBOR - The 1 month USD LIBOR rate as of May 31, 2023 was 5.19%.

3M USD LIBOR - The 3 month USD LIBOR rate as of May 31, 2023 was 5.52%.

1M USD TERM SOFR - The 1 month USD TERM SOFR rate as of May 31, 2023 was 5.17%.

3M USD TERM SOFR - The 3 month USD TERM SOFR rate as of May 31, 2023 was 5.29%.

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

See accompanying notes to consolidated financial statements


Saratoga Investment Corp.

Consolidated Schedule of Investments

February 28, 2023

Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Non-control/Non-affiliate investments - 238.6% (b)                  
Altvia MidCo, LLC. Alternative Investment Management Software First Lien Term Loan (3M USD TERM SOFR+8.50%), 13.39% Cash, 7/18/2027 7/18/2022 $7,980,000  $7,907,457  $7,911,372   2.3%
Altvia MidCo, LLC. (h) Alternative Investment Management Software Series A-1 Preferred Shares 7/18/2022  2,000,000   2,000,000   2,548,000   0.7%
    Total Alternative Investment Management Software        9,907,457   10,459,372   3.0%
Artemis Wax Corp. (d)(j) Consumer Services Delayed Draw Term Loan (1M USD TERM SOFR+6.75%), 11.41% Cash, 5/20/2026 5/20/2021 $57,500,000   57,059,057   57,500,000   16.6%
Artemis Wax Corp. (h) Consumer Services Series B-1 Preferred Stock 5/20/2021  934,463   1,500,000   4,642,322   1.3%
Artemis Wax Corp. (h) Consumer Services Series D Preferred Stock 12/22/2022  278,769   1,500,000   1,500,005   0.4%
    Total Consumer Services        60,059,057   63,642,327   18.3%
Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020  1,050   475,698   3,809,091   1.1%
    Total Corporate Education Software        475,698   3,809,091   1.1%
GreyHeller LLC (h) Cyber Security Common Stock 11/10/2021  7,857,689   1,906,275   2,509,210   0.7%
    Total Cyber Security        1,906,275   2,509,210   0.7%
New England Dental Partners Dental Practice Management First Lien Term Loan (3M USD LIBOR+8.00%), 12.97% Cash, 11/25/2025 11/25/2020 $6,555,000   6,514,437   6,523,536   1.9%
New England Dental Partners Dental Practice Management Delayed Draw Term Loan (3M USD LIBOR+8.00%), 12.97% Cash, 11/25/2025 11/25/2020 $4,650,000   4,627,032   4,627,680   1.3%
Gen4 Dental Partners Holdings, LLC (j) Dental Practice Management Delayed Draw Term Loan (3M USD TERM SOFR+10.35%), 15.24% Cash, 4/29/2026 2/8/2023 $-   (94,504)  -   0.0%
Gen4 Dental Partners Holdings, LLC (i) Dental Practice Management Series A Preferred Units 2/8/2023  480,769   1,000,000   1,000,000   0.3%
    Total Dental Practice Management        12,046,965   12,151,216   3.5%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Exigo, LLC (d) Direct Selling Software First Lien Term Loan (1M USD LIBOR+5.75%), 10.42% Cash, 3/16/2027 3/16/2022 $24,812,500   24,632,494   24,504,825   7.1%
Exigo, LLC (j) Direct Selling Software Delayed Draw Term Loan (1M USD LIBOR+5.75%), 10.42% Cash, 3/16/2027 3/16/2022 $-   -   (51,667)  0.0%
Exigo, LLC (j) Direct Selling Software Revolving Credit Facility (1M USD LIBOR+5.75%), 10.42% Cash, 3/16/2027 3/16/2022 $208,334   208,333   195,417   0.1%
Exigo, LLC (h), (i) Direct Selling Software Common Units 3/16/2022  1,041,667   1,041,667   1,121,575   0.3%
    Total Direct Selling Software        25,882,494   25,770,150   7.5%
C2 Educational Systems (d) Education Services First Lien Term Loan (3M USD LIBOR+8.50%), 13.47% Cash, 5/31/2023 5/31/2017 $18,500,000   18,497,146   18,525,900   5.3%
C2 Education Systems, Inc. (h) Education Services Series A-1 Preferred Stock 5/18/2021  3,127   499,904   629,892   0.2%
Zollege PBC Education Services First Lien Term Loan (3M USD LIBOR+7.00%), 11.97% Cash, 5/11/2026 5/11/2021 $16,000,000   15,905,830   14,827,200   4.3%
Zollege PBC (j) Education Services Delayed Draw Term Loan (3M USD LIBOR+7.00%), 11.97% Cash, 5/11/2026 5/11/2021 $500,000   496,809   390,050   0.1%
Zollege PBC (h) Education Services Class A Units 5/11/2021  250,000   250,000   115,676   0.0%
    Total Education Services        35,649,689   34,488,718   9.9%
Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018  3,068   3,969,291   8,941,350   2.6%
GoReact Education Software First Lien Term Loan (3M USD TERM SOFR+7.50%), 13.59% Cash, 1/17/2025 1/17/2020 $8,006,000   7,952,042   7,982,783   2.3%
GoReact (j) Education Software Delayed Draw Term Loan (3M USD TERM SOFR+7.50%), 13.59% Cash, 1/17/2025 1/18/2022 $1,000,750   1,000,750   997,848   0.3%
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014  232,616   232,616   218,168   0.1%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020  43,715   171,571   217,370   0.1%
Ready Education Education Software First Lien Term Loan (3M USD TERM SOFR+6.00%), 10.89% Cash, 8/5/2027 8/5/2022 $27,000,000   26,751,573   26,597,700   7.7%
    Total Education Software        40,077,843   44,955,219   13.1%
TG Pressure Washing Holdings, LLC (h) Facilities Maintenance Preferred Equity 8/12/2019  488,148   488,148   407,760   0.1%
    Total Facilities Maintenance        488,148   407,760   0.1%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Davisware, LLC Field Service Management First Lien Term Loan (3M USD TERM SOFR+7.00%), 11.89% Cash, 7/31/2024 9/6/2019 $6,000,000   5,972,735   5,988,000   1.7%
Davisware, LLC Field Service Management Delayed Draw Term Loan (3M USD TERM SOFR+7.00%), 11.89% Cash, 7/31/2024 9/6/2019 $3,977,790   3,950,992   3,969,834   1.1%
    Total Field Service Management        9,923,727   9,957,834   2.8%
B. Riley Financial, Inc. (a) Financial Services Senior Unsecured Loan 6.75% Cash, 5/31/2024 10/18/2022 $165,301   165,301   160,077   0.0%
GDS Software Holdings, LLC Financial Services First Lien Term Loan (3M USD LIBOR+7.00%), 11.97% Cash, 12/30/2026 12/30/2021 $22,713,926   22,603,970   22,311,890   6.4%
GDS Software Holdings, LLC Financial Services Delayed Draw Term Loan (3M USD LIBOR+7.00%), 11.97% Cash, 12/30/2026 12/30/2021 $3,286,074   3,257,297   3,227,910   0.9%
GDS Software Holdings, LLC  (h) Financial Services Common Stock Class A Units 8/23/2018  250,000   250,000   518,413   0.1%
    Total Financial Services        26,276,568   26,218,290   7.4%
Ascend Software, LLC Financial Services Software First Lien Term Loan (3M USD LIBOR+7.50%), 12.47% Cash, 12/15/2026 12/15/2021 $6,000,000   5,952,354   5,902,200   1.7%
Ascend Software, LLC (j) Financial Services Software Delayed Draw Term Loan (3M USD LIBOR+7.50%), 12.47% Cash, 12/15/2026 12/15/2021 $3,300,000   3,269,283   3,194,050   0.9%
    Total Financial Services Software        9,221,637   9,096,250   2.6%
Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018 $400,000   400,000   1,286,156   0.4%
ComForCare Health Care (d) Healthcare Services First Lien Term Loan (3M USD LIBOR+6.25%), 11.22% Cash, 1/31/2025 1/31/2017 $25,000,000   24,938,666   25,000,000   7.2%
    Total Healthcare Services        25,338,666   26,286,156   7.6%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
HemaTerra Holding Company, LLC (d) Healthcare Software First Lien Term Loan (1M USD TERM SOFR+8.25%), 12.91% Cash, 1/31/2027 4/15/2019 $55,483,943   55,105,372   55,445,104   16.0%
HemaTerra Holding Company, LLC Healthcare Software Delayed Draw Term Loan (1M USD TERM SOFR+8.25%), 12.91% Cash, 1/31/2027 4/15/2019 $13,895,175   13,829,142   13,885,448   4.0%
TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019  2,487   2,816,693   4,606,741   1.3%
Procurement Partners, LLC Healthcare Software First Lien Term Loan (3M USD TERM SOFR+6.50%), 11.39% Cash, 5/12/2026 11/12/2020 $35,125,000   34,906,981   35,103,925   10.1%
Procurement Partners, LLC (j) Healthcare Software Delayed Draw Term Loan (3M USD TERM SOFR+6.50%), 11.39% Cash, 5/12/2026 11/12/2020 $9,300,000   9,219,412   9,294,420   2.7%
Procurement Partners Holdings LLC (h) Healthcare Software Class A Units 11/12/2020  571,219   571,219   788,283   0.2%
    Total Healthcare Software        116,448,819   119,123,921   34.3%
Roscoe Medical, Inc. (h) Healthcare Supply Common Stock 3/26/2014  5,081   508,077   -   0.0%
    Total Healthcare Supply        508,077   -   0.0%
Book4Time, Inc. (a), (d) Hospitality/Hotel First Lien Term Loan (3M USD LIBOR+7.50%), 12.47%, 12/22/2025 12/22/2020 $3,136,517   3,116,896   3,136,517   0.9%
Book4Time, Inc. (a) Hospitality/Hotel Delayed Draw Term Loan (3M USD LIBOR+7.50%), 12.47%, 12/22/2025 12/22/2020 $2,000,000   1,984,212   2,000,000   0.6%
Book4Time, Inc. (a), (h), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020  200,000   156,826   281,778   0.1%
Knowland Group, LLC (h), (k) Hospitality/Hotel Second Lien Term Loan (3M USD LIBOR+8.00%), 13.97% Cash/1.00% PIK, 5/9/2024 11/9/2018 $15,878,989   15,878,989   9,760,821   2.8%
Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan (3M USD TERM SOFR+7.25%), 12.14% Cash, 11/15/2027 4/27/2020 $23,000,000   22,806,316   22,793,000   6.6%
Sceptre Hospitality Resources, LLC (j) Hospitality/Hotel Delayed Draw Term Loan (3M USD TERM SOFR+7.25%), 12.14% Cash, 11/15/2027 9/2/2021 $-   -   -   0.0%
    Total Hospitality/Hotel        43,943,239   37,972,116   11.0%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Granite Comfort, LP (d) HVAC Services and Sales First Lien Term Loan (3M USD TERM SOFR+7.86%), 12.75% Cash, 11/16/2025 11/16/2020 $43,000,000   42,694,831   42,570,000   12.3%
Granite Comfort, LP (j) HVAC Services and Sales Delayed Draw Term Loan (3M USD TERM SOFR+7.86%), 12.75% Cash, 11/16/2025 11/16/2020 $12,000,000   11,894,177   11,880,000   3.4%
    Total HVAC Services and Sales        54,589,008   54,450,000   15.7%
Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan (3M USD LIBOR+6.50%), 11.47% Cash, 3/6/2025 3/6/2013 $3,089,986   3,089,986   3,089,986   0.9%
Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015  343   -   6,517,923   1.9%
    Total Industrial Products        3,089,986   9,607,909   2.8%
AgencyBloc, LLC Insurance Software First Lien Term Loan (1M USD BSBY+8.00%), 12.58% Cash, 10/1/2026 10/1/2021 $13,469,318   13,376,121   13,449,114   3.9%
Panther ParentCo LLC (h) Insurance Software Class A Units 10/1/2021  2,500,000   2,500,000   3,311,442   1.0%
    Total Insurance Software        15,876,121   16,760,556   4.9%
LogicMonitor, Inc. (d) IT Services First Lien Term Loan (3M USD TERM SOFR+6.50%), 11.39% Cash, 5/17/2026 3/20/2020 $43,000,000   42,953,087   43,000,000   12.4%
    Total IT Services        42,953,087   43,000,000   12.4%
ActiveProspect, Inc. (d) Lead Management Software First Lien Term Loan (3M USD LIBOR+6.00%), 10.97% Cash, 8/8/2027 8/8/2022 $12,000,000   11,906,362   12,090,000   3.5%
ActiveProspect, Inc. (j) Lead Management Software Delayed Draw Term Loan (3M USD LIBOR+6.00%), 10.97% Cash, 8/8/2027 8/8/2022 $-   -   -   0.0%
    Total Lead Management Software        11,906,362   12,090,000   3.5%
Centerbase, LLC Legal Software First Lien Term Loan (1M USD TERM SOFR+7.75%), 12.41% Cash, 1/18/2027 1/18/2022 $21,247,440   21,055,931   20,699,256   6.0%
    Total Legal Software        21,055,931   20,699,256   6.0%
Madison Logic, Inc. (d) Marketing Orchestration Software First Lien Term Loan (3M USD TERM SOFR+7.00%), 11.89% Cash, 12/30/2028 12/10/2021 $19,000,000   18,626,777   18,715,000   5.4%
    Total Marketing Orchestration Software        18,626,777   18,715,000   5.4%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
ARC Health OpCo LLC (d) Mental Healthcare Services First Lien Term Loan (3M USD TERM SOFR+8.48%), 13.37% Cash, 8/5/2027 8/5/2022 $6,500,000   6,427,296   6,461,000   1.9%
ARC Health OpCo LLC (d), (j) Mental Healthcare Services Delayed Draw Term Loan (3M USD TERM SOFR+8.48%), 13.37% Cash, 8/5/2027 8/5/2022 $7,726,978   7,634,711   7,680,616   2.2%
ARC Health OpCo LLC (h) Mental Healthcare Services Class A Preferred Shares 8/5/2022  2,808,236   3,035,108   2,780,153   0.8%
    Total Mental Healthcare Services        17,097,115   16,921,769   4.9%
Chronus LLC Mentoring Software First Lien Term Loan (3M USD LIBOR+5.25), 10.22% Cash, 8/26/2026 8/26/2021 $15,000,000   14,887,780   14,890,500   4.3%
Chronus LLC Mentoring Software First Lien Term Loan (3M USD LIBOR+6.00), 10.97% Cash, 8/26/2026 8/26/2021 $3,000,000   2,973,634   2,978,100   0.9%
Chronus LLC (h) Mentoring Software Series A Preferred Stock 8/26/2021  3,000   3,000,000   3,490,403   1.0%
    Total Mentoring Software        20,861,414   21,359,003   6.2%
Omatic Software, LLC Non-profit Services First Lien Term Loan (3M USD TERM SOFR+8.00%), 14.15% Cash/1.00% PIK, 1/31/2024 5/29/2018 $13,122,781   13,091,197   13,095,223   3.8%
    Total Non-profit Services        13,091,197   13,095,223   3.8%
Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note (3M USD TERM SOFR+7.50%), 12.39% Cash, 12/31/2025 12/28/2012 $6,000,000   5,974,379   5,965,800   1.7%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests, Expires 12/31/2025 12/28/2012  49,318   400,000   406,755   0.1%
    Total Office Supplies        6,374,379   6,372,555   1.8%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Buildout, Inc. Real Estate Services First Lien Term Loan (3M USD LIBOR+7.00%), 11.97% Cash, 7/9/2025 7/9/2020 $14,000,000   13,924,435   13,855,800   4.0%
Buildout, Inc. Real Estate Services Delayed Draw Term Loan (3M USD LIBOR+7.00%), 11.97% Cash, 7/9/2025 2/12/2021 $38,500,000   38,257,589   38,103,450   11.0%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020  1,250   1,372,557   1,447,219   0.4%
    Total Real Estate Services        53,554,581   53,406,469   15.4%
Archimedes Parent LLC (h) Research Software Class A Common Units 6/27/2022  1,125,160   1,125,160   1,136,503   0.3%
Wellspring Worldwide Inc. Research Software First Lien Term Loan (1M USD BSBY+7.25%), 11.83% Cash, 6/27/2027 6/27/2022 $9,600,000   9,503,123   9,540,480   2.7%
    Total Research Software        10,628,283   10,676,983   3.0%
LFR Chicken LLC Restaurant First Lien Term Loan (1M USD LIBOR+7.00%), 11.67% Cash, 11/19/2026 11/19/2021 $12,000,000   11,906,864   11,866,800   3.4%
LFR Chicken LLC (j) Restaurant Delayed Draw Term Loan (1M USD LIBOR+7.00%), 11.67% Cash, 11/19/2026 11/19/2021 $9,000,000   8,927,326   8,900,100   2.6%
LFR Chicken LLC (h) Restaurant Series B Preferred Units 11/19/2021  497,183   1,000,000   1,177,373   0.3%
TMAC Acquisition Co., LLC Restaurant Unsecured Term Loan 8.00% PIK, 3/1/2024 3/1/2018 $3,217,657   3,217,657   2,881,888   0.8%
    Total Restaurant        25,051,847   24,826,161   7.1%
Pepper Palace, Inc. (d) Specialty Food Retailer First Lien Term Loan (3M USD LIBOR+6.25%), 11.22% Cash, 6/30/2026 6/30/2021 $33,490,000   33,255,863   24,410,861   7.0%
Pepper Palace, Inc. (j) Specialty Food Retailer Delayed Draw Term Loan (3M USD LIBOR+6.25%), 11.22% Cash, 6/30/2026 6/30/2021 $-   -   -   0.0%
Pepper Palace, Inc. (j) Specialty Food Retailer Revolving Credit Facility (3M USD LIBOR+6.25%), 11.22% Cash, 6/30/2026 6/30/2021 $-   -   -   0.0%
Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest 6/30/2021  1,000,000   1,000,000   -   0.0%
    Total Specialty Food Retailer        34,255,863   24,410,861   7.0%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
ArbiterSports, LLC (d) Sports Management First Lien Term Loan (3M USD LIBOR+6.50%), 11.47% Cash, 2/21/2025 2/21/2020 $26,000,000   25,894,505   25,721,800   7.4%
ArbiterSports, LLC Sports Management Delayed Draw Term Loan (3M USD LIBOR+6.50%), 11.47% Cash, 2/21/2025 2/21/2020 $1,000,000   1,000,000   989,300   0.3%
    Total Sports Management        26,894,505   26,711,100   7.7%
Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014  100,000   100,000   2,079,325   0.6%
    Total Staffing Services        100,000   2,079,325   0.6%
JDXpert Talent Acquisition Software First Lien Term Loan (3M USD LIBOR+8.50%), 13.47% Cash, 5/2/2027 5/2/2022 $6,000,000   5,947,780   6,045,000   1.7%
JDXpert (j) Talent Acquisition Software Delayed Draw Term Loan (3M USD LIBOR+8.50%), 13.47% Cash, 5/2/2027 5/2/2022 $-   -   -   0.0%
Jobvite, Inc. (d) Talent Acquisition Software First Lien Term Loan (3M USD TERM SOFR+8.00%), 12.89% Cash, 8/5/2028 8/5/2022 $20,000,000   19,857,613   19,954,000   5.8%
    Total Talent Acquisition Software        25,805,393   25,999,000   7.5%
Sub Total Non-control/Non-affiliate investments            819,966,208   828,028,800   238.6%
Affiliate investments - 8.1% (b)                      
ETU Holdings, Inc. (f) Corporate Education Software First Lien Term Loan (3M USD LIBOR+9.00%), 13.97% Cash, 8/18/2027 8/18/2022 $7,000,000   6,935,556   7,006,300   2.0%
ETU Holdings, Inc. (f) Corporate Education Software Second Lien Term Loan 15.00% PIK, 2/18/2028 8/18/2022 $5,282,563   5,235,433   5,175,327   1.5%
ETU Holdings, Inc. (f), (h) Corporate Education Software Series A-1 Preferred Stock 8/18/2022  3,000,000   3,000,000   3,072,504   0.9%
    Total Corporate Education Software        15,170,989   15,254,131   4.4%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Axero Holdings, LLC (f) Employee Collaboration Software First Lien Term Loan (3M USD TERM SOFR+8.00%), 13.04% Cash, 6/30/2026 6/30/2021 $5,500,000   5,460,448   5,513,200   1.6%
Axero Holdings, LLC (f) Employee Collaboration Software Delayed Draw Term Loan (3M USD TERM SOFR+8.00%), 13.04% Cash, 6/30/2026 6/30/2021 $1,100,000   1,090,883   1,102,640   0.3%
Axero Holdings, LLC (f), (j) Employee Collaboration Software Revolving Credit Facility (3M USD TERM SOFR+8.00%), 13.04% Cash, 6/30/2026 2/3/2022 $-   -   -   0.0%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series A Preferred Units 6/30/2021  2,000,000   2,000,000   2,498,000   0.7%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series B Preferred Units 6/30/2021  2,000,000   2,000,000   3,937,900   1.1%
    Total Employee Collaboration Software        10,551,331   13,051,740   3.7%
Sub Total Affiliate investments            25,722,320   28,305,871   8.1%
Control investments - 33.6% (b)                      
Netreo Holdings, LLC (g) IT Services First Lien Term Loan
(3M USD LIBOR +6.50%), 13.47% Cash/2.00% PIK 12/31/2025		 7/3/2018 $5,539,029   5,522,608   5,443,757   1.6%
Netreo Holdings, LLC (d), (g) IT Services Delayed Draw Term Loan
(3M USD LIBOR +6.50%), 13.47% Cash/2.00% PIK, 12/31/2025		 5/26/2020 $22,111,008   22,019,877   21,730,699   6.3%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018  4,600,677   8,344,500   16,992,742   4.9%
    Total IT Services        35,886,985   44,167,198   12.8%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities 0.00%, 4/20/2033 1/22/2008 $111,000,000   28,943,904   21,176,578   6.1%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities (3M USD LIBOR+10.00%), 14.97%, 4/20/2033 8/9/2021 $9,375,000   9,375,000   8,831,406   2.5%
Saratoga Investment Corp. Senior Loan Fund 2022-1, Ltd. Class E Note (a), (g) Structured Finance Securities Other/Structured Finance Securities (3M USD TERM SOFR+8.55%), 13.44%, 10/20/2033 10/28/2022 $12,250,000   11,392,500   11,354,495   3.3%
    Total Structured Finance Securities        49,711,404   41,362,479   11.9%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Unsecured Loan 10.00%, 6/15/2023 2/17/2022 $17,618,954   17,618,954   17,618,954   5.1%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (h) Investment Fund Membership Interest 2/17/2022  17,583,486   17,583,486   13,106,951   3.8%
    Total Investment Fund        35,202,440   30,725,905   8.9%
Sub Total Control investments            120,800,829   116,255,582   33.6%
TOTAL INVESTMENTS - 280.3% (b)           $966,489,357  $972,590,253   280.3%

 Number of
Shares		  Cost  Fair Value  % of
Net Assets		  Number of Shares  Cost  Fair Value  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 27.7% (b)         
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 13.4% (b)         
U.S. Bank Money Market (l)  96,076,273  $96,076,273  $96,076,273   27.7%  48,432,900  $48,432,900  $48,432,900   13.4%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  96,076,273  $96,076,273  $96,076,273   27.7%  48,432,900  $48,432,900  $48,432,900   13.4%

 

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

(a)Represents an investment that is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, as amended (the 1940 Act”). As of February 28,August 31, 2023, non-qualifying assets represent 8.6%6.2% of the Company’s portfolio at fair value. As a BDC, the Company generally has to invest at least 70% of its total assets in qualifying assets.

(b)Percentages are based on net assets of $346,958,042$362,078,755 as of February 28,August 31, 2023.

(c)Because there is no “readily available market quotations” (as defined in the 1940 Act) for these investments, the fair values of these investments were determined using significant unobservable inputs and approved in good faith by our board of directors.  These investments have been included as Level 3 in the Fair Value Hierarchy (see Note 3 to the consolidated financial statements).

(d)These securities are either fully or partially pledged as collateral under the Company’s senior secured revolving credit facility (see Note 8 to the consolidated financial statements).

(e)This investment does not have a stated interest rate that is payable thereon. As a result, the 0.00% interest rate in the table above represents the effective interest rate currently earned on the investment cost and is based on the current cash interest and other income generated by the investment.


(f)As defined in the 1940 Act, this portfolio company is an “affiliate” as we own between 5.0% and 25.0% of the outstanding voting securities. Transactions during the six months ended August 31, 2023 in which the issuer was an affiliate are as follows:

Company Purchases  Sales  Total Interest from
Investments		  Management Fee Income  Net Realized
Gain (Loss) from Investments		  Net Change in Unrealized
Appreciation (Depreciation)		 
Axero Holdings, LLC $         -  $-  $450,923  $               -  $         -  $399,221 
ETU Holdings, Inc.  -              -   943,929   -   -   (597,549)
Modis Dental Partners OpCo, LLC  8,845,000   -   390,949   -   -   (3,754)
Alpha Aesthetics Partners OpCo, LLC  9,390,664   -   271,485   -   -   (3,554)
Total $18,235,664  $-  $2,057,286  $-  $-  $(205,636)

(g)As defined in the 1940 Act, we “control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the six months ended August 31, 2023 in which the issuer was both an affiliate and a portfolio company that we control are as follows:

Company Purchases  Sales  Total Interest from
Investments		  Management Fee Income  Net Realized
Gain (Loss) from Investments		  Net Change in Unrealized
Appreciation (Depreciation)		 
Netreo Holdings, LLC $                 -  $         -  $1,951,099  $      -  $            -  $(3,206,444)
Saratoga Investment Corp. CLO 2013-1, Ltd.  -   -   -   1,634,038   -   (2,145,053)
Saratoga Investment Corp. Senior Loan Fund 2022-1, Ltd. Class E Note  -   -   834,775   -   -   94,980 
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note  -   -   728,762   -   -   121,439 
Saratoga Senior Loan Fund I JV, LLC  -   -   900,524   -   -   - 
Saratoga Senior Loan Fund I JV, LLC  -   -   -   -   -   (3,333,579)
Total $-  $-  $4,415,160  $1,634,038  $-  $(8,468,657)

(h)Non-income producing at August 31, 2023.

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

(j)All or a portion of this investment has an unfunded commitment as of August 31, 2023. (See Note 9 to the consolidated financial statements).

(k)As of August 31, 2023, the investment was on non-accrual status. The fair value of these investments was approximately $17.7 million, which represented 1.6% of the Company’s portfolio (see Note 2 to the consolidated financial statements).

(l)Included within cash and cash equivalents and cash and cash equivalents, reserve accounts in the Company’s consolidated statements of assets and liabilities as of August 31, 2023.

BSBY - Bloomberg Short-Term Bank Yield 

SOFR - Secured Overnight Financing Rate

1M USD BSBY - The 1 month USD BSBY rate as of August 31, 2023 was 5.38%. 

1M USD TERM SOFR - The 1 month USD TERM SOFR rate as of August 31, 2023 was 5.33%. 

3M USD TERM SOFR - The 3 month USD TERM SOFR rate as of August 31, 2023 was 5.40%. 

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

See accompanying notes to consolidated financial statements


Saratoga Investment Corp.

Consolidated Schedule of Investments

February 28, 2023

Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Non-control/Non-affiliate investments - 238.6% (b)                  
Altvia MidCo, LLC. Alternative Investment Management Software 

First Lien Term Loan

(3M USD TERM SOFR+8.50%), 13.39% Cash, 7/18/2027

 7/18/2022 $7,980,000  $7,907,457  $7,911,372   2.3%
Altvia MidCo, LLC. (h) Alternative Investment Management Software Series A-1 Preferred Shares 7/18/2022  2,000,000   2,000,000   2,548,000   0.7%
    Total Alternative Investment Management Software        9,907,457   10,459,372   3.0%
Artemis Wax Corp. (d)(j) Consumer Services 

Delayed Draw Term Loan

(1M USD TERM SOFR+6.75%), 11.41% Cash, 5/20/2026

 5/20/2021 $57,500,000   57,059,057   57,500,000   16.6%
Artemis Wax Corp. (h) Consumer Services Series B-1 Preferred Stock 5/20/2021  934,463   1,500,000   4,642,322   1.3%
Artemis Wax Corp. (h) Consumer Services Series D Preferred Stock 12/22/2022  278,769   1,500,000   1,500,005   0.4%
    Total Consumer Services        60,059,057   63,642,327   18.3%
Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020  1,050   475,698   3,809,091   1.1%
    Total Corporate Education Software        475,698   3,809,091   1.1%
GreyHeller LLC (h) Cyber Security Common Stock 11/10/2021  7,857,689   1,906,275   2,509,210   0.7%
    Total Cyber Security        1,906,275   2,509,210   0.7%
New England Dental Partners Dental Practice Management 

First Lien Term Loan

(3M USD LIBOR+8.00%), 12.97% Cash, 11/25/2025

 11/25/2020 $6,555,000   6,514,437   6,523,536   1.9%
New England Dental Partners Dental Practice Management 

Delayed Draw Term Loan

(3M USD LIBOR+8.00%), 12.97% Cash, 11/25/2025

 11/25/2020 $4,650,000   4,627,032   4,627,680   1.3%
Gen4 Dental Partners Holdings, LLC (j) Dental Practice Management 

Delayed Draw Term Loan

(3M USD TERM SOFR+10.35%), 15.24% Cash, 4/29/2026

 2/8/2023 $-   (94,504)  -   0.0%
Gen4 Dental Partners Holdings, LLC (i) Dental Practice Management Series A Preferred Units 2/8/2023  480,769   1,000,000   1,000,000   0.3%
    Total Dental Practice Management        12,046,965   12,151,216   3.5%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Exigo, LLC (d) Direct Selling Software 

First Lien Term Loan

(1M USD LIBOR+5.75%), 10.42% Cash, 3/16/2027

 3/16/2022 $24,812,500   24,632,494   24,504,825   7.1%
Exigo, LLC (j) Direct Selling Software 

Delayed Draw Term Loan

(1M USD LIBOR+5.75%), 10.42% Cash, 3/16/2027

 3/16/2022 $-   -   (51,667)  0.0%
Exigo, LLC (j) Direct Selling Software 

Revolving Credit Facility

(1M USD LIBOR+5.75%), 10.42% Cash, 3/16/2027

 3/16/2022 $208,334   208,333   195,417   0.1%
Exigo, LLC (h), (i) Direct Selling Software Common Units 3/16/2022  1,041,667   1,041,667   1,121,575   0.3%
    Total Direct Selling Software        25,882,494   25,770,150   7.5%
C2 Educational Systems (d) Education Services 

First Lien Term Loan

(3M USD LIBOR+8.50%), 13.47% Cash, 5/31/2023

 5/31/2017 $18,500,000   18,497,146   18,525,900   5.3%
C2 Education Systems, Inc. (h) Education Services Series A-1 Preferred Stock 5/18/2021  3,127   499,904   629,892   0.2%
Zollege PBC Education Services 

First Lien Term Loan

(3M USD LIBOR+7.00%), 11.97% Cash, 5/11/2026

 5/11/2021 $16,000,000   15,905,830   14,827,200   4.3%
Zollege PBC (j) Education Services 

Delayed Draw Term Loan

(3M USD LIBOR+7.00%), 11.97% Cash, 5/11/2026

 5/11/2021 $500,000   496,809   390,050   0.1%
Zollege PBC (h) Education Services Class A Units 5/11/2021  250,000   250,000   115,676   0.0%
    Total Education Services        35,649,689   34,488,718   9.9%
Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018  3,068   3,969,291   8,941,350   2.6%
GoReact Education Software 

First Lien Term Loan

(3M USD TERM SOFR+7.50%), 13.59% Cash, 1/17/2025

 1/17/2020 $8,006,000   7,952,042   7,982,783   2.3%
GoReact (j) Education Software 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.50%), 13.59% Cash, 1/17/2025

 1/18/2022 $1,000,750   1,000,750   997,848   0.3%
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014  232,616   232,616   218,168   0.1%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020  43,715   171,571   217,370   0.1%
Ready Education Education Software 

First Lien Term Loan

(3M USD TERM SOFR+6.00%), 10.89% Cash, 8/5/2027

 8/5/2022 $27,000,000   26,751,573   26,597,700   7.7%
    Total Education Software        40,077,843   44,955,219   13.1%
TG Pressure Washing Holdings, LLC (h) Facilities Maintenance Preferred Equity 8/12/2019  488,148   488,148   407,760   0.1%
    Total Facilities Maintenance        488,148   407,760   0.1%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Davisware, LLC Field Service Management 

First Lien Term Loan

(3M USD TERM SOFR+7.00%), 11.89% Cash, 7/31/2024

 9/6/2019 $6,000,000   5,972,735   5,988,000   1.7%
Davisware, LLC Field Service Management 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.00%), 11.89% Cash, 7/31/2024

 9/6/2019 $3,977,790   3,950,992   3,969,834   1.1%
    Total Field Service Management        9,923,727   9,957,834   2.8%
B. Riley Financial, Inc. (a) Financial Services 

Senior Unsecured Loan

6.75% Cash, 5/31/2024

 10/18/2022 $165,301   165,301   160,077   0.0%
GDS Software Holdings, LLC Financial Services 

First Lien Term Loan

(3M USD LIBOR+7.00%), 11.97% Cash, 12/30/2026

 12/30/2021 $22,713,926   22,603,970   22,311,890   6.4%
GDS Software Holdings, LLC Financial Services 

Delayed Draw Term Loan

(3M USD LIBOR+7.00%), 11.97% Cash, 12/30/2026

 12/30/2021 $3,286,074   3,257,297   3,227,910   0.9%
GDS Software Holdings, LLC  (h) Financial Services Common Stock Class A Units 8/23/2018  250,000   250,000   518,413   0.1%
    Total Financial Services        26,276,568   26,218,290   7.4%
Ascend Software, LLC Financial Services Software 

First Lien Term Loan

(3M USD LIBOR+7.50%), 12.47% Cash, 12/15/2026

 12/15/2021 $6,000,000   5,952,354   5,902,200   1.7%
Ascend Software, LLC (j) Financial Services Software 

Delayed Draw Term Loan

(3M USD LIBOR+7.50%), 12.47% Cash, 12/15/2026

 12/15/2021 $3,300,000   3,269,283   3,194,050   0.9%
    Total Financial Services Software        9,221,637   9,096,250   2.6%
Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018 $400,000   400,000   1,286,156   0.4%
ComForCare Health Care (d) Healthcare Services 

First Lien Term Loan

(3M USD LIBOR+6.25%), 11.22% Cash, 1/31/2025

 1/31/2017 $25,000,000   24,938,666   25,000,000   7.2%
    Total Healthcare Services        25,338,666   26,286,156   7.6%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
HemaTerra Holding Company, LLC (d) Healthcare Software 

First Lien Term Loan

(1M USD TERM SOFR+8.25%), 12.91% Cash, 1/31/2027

 4/15/2019 $55,483,943   55,105,372   55,445,104   16.0%
HemaTerra Holding Company, LLC Healthcare Software 

Delayed Draw Term Loan

(1M USD TERM SOFR+8.25%), 12.91% Cash, 1/31/2027

 4/15/2019 $13,895,175   13,829,142   13,885,448   4.0%
TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019  2,487   2,816,693   4,606,741   1.3%
Procurement Partners, LLC Healthcare Software 

First Lien Term Loan

(3M USD TERM SOFR+6.50%), 11.39% Cash, 5/12/2026

 11/12/2020 $35,125,000   34,906,981   35,103,925   10.1%
Procurement Partners, LLC (j) Healthcare Software 

Delayed Draw Term Loan

(3M USD TERM SOFR+6.50%), 11.39% Cash, 5/12/2026

 11/12/2020 $9,300,000   9,219,412   9,294,420   2.7%
Procurement Partners Holdings LLC (h) Healthcare Software Class A Units 11/12/2020  571,219   571,219   788,283   0.2%
    Total Healthcare Software        116,448,819   119,123,921   34.3%
Roscoe Medical, Inc. (h) Healthcare Supply Common Stock 3/26/2014  5,081   508,077   -   0.0%
    Total Healthcare Supply        508,077   -   0.0%
Book4Time, Inc. (a), (d) Hospitality/Hotel 

First Lien Term Loan

(3M USD LIBOR+7.50%), 12.47%, 12/22/2025

 12/22/2020 $3,136,517   3,116,896   3,136,517   0.9%
Book4Time, Inc. (a) Hospitality/Hotel 

Delayed Draw Term Loan

(3M USD LIBOR+7.50%), 12.47%, 12/22/2025

 12/22/2020 $2,000,000   1,984,212   2,000,000   0.6%
Book4Time, Inc. (a), (h), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020  200,000   156,826   281,778   0.1%
Knowland Group, LLC (h), (k) Hospitality/Hotel 

Second Lien Term Loan

(3M USD LIBOR+8.00%), 13.97% Cash/1.00% PIK, 5/9/2024

 11/9/2018 $15,878,989   15,878,989   9,760,821   2.8%
Sceptre Hospitality Resources, LLC Hospitality/Hotel 

First Lien Term Loan

(3M USD TERM SOFR+7.25%), 12.14% Cash, 11/15/2027

 4/27/2020 $23,000,000   22,806,316   22,793,000   6.6%
Sceptre Hospitality Resources, LLC (j) Hospitality/Hotel 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.25%), 12.14% Cash, 11/15/2027

 9/2/2021 $-   -   -   0.0%
    Total Hospitality/Hotel        43,943,239   37,972,116   11.0%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Granite Comfort, LP (d) HVAC Services and Sales 

First Lien Term Loan

(3M USD TERM SOFR+7.86%), 12.75% Cash, 11/16/2025

 11/16/2020 $43,000,000   42,694,831   42,570,000   12.3%
Granite Comfort, LP (j) HVAC Services and Sales 

Delayed Draw Term Loan

(3M USD TERM SOFR+7.86%), 12.75% Cash, 11/16/2025

 11/16/2020 $12,000,000   11,894,177   11,880,000   3.4%
    Total HVAC Services and Sales        54,589,008   54,450,000   15.7%
Vector Controls Holding Co., LLC (d) Industrial Products 

First Lien Term Loan

(3M USD LIBOR+6.50%), 11.47% Cash, 3/6/2025

 3/6/2013 $3,089,986   3,089,986   3,089,986   0.9%
Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015  343   -   6,517,923   1.9%
    Total Industrial Products        3,089,986   9,607,909   2.8%
AgencyBloc, LLC Insurance Software 

First Lien Term Loan

(1M USD BSBY+8.00%), 12.58% Cash, 10/1/2026

 10/1/2021 $13,469,318   13,376,121   13,449,114   3.9%
Panther ParentCo LLC (h) Insurance Software Class A Units 10/1/2021  2,500,000   2,500,000   3,311,442   1.0%
    Total Insurance Software        15,876,121   16,760,556   4.9%
LogicMonitor, Inc. (d) IT Services 

First Lien Term Loan

(3M USD TERM SOFR+6.50%), 11.39% Cash, 5/17/2026

 3/20/2020 $43,000,000   42,953,087   43,000,000   12.4%
    Total IT Services        42,953,087   43,000,000   12.4%
ActiveProspect, Inc. (d) Lead Management Software 

First Lien Term Loan

(3M USD LIBOR+6.00%), 10.97% Cash, 8/8/2027

 8/8/2022 $12,000,000   11,906,362   12,090,000   3.5%
ActiveProspect, Inc. (j) Lead Management Software 

Delayed Draw Term Loan

(3M USD LIBOR+6.00%), 10.97% Cash, 8/8/2027

 8/8/2022 $-   -   -   0.0%
    Total Lead Management Software        11,906,362   12,090,000   3.5%
Centerbase, LLC Legal Software 

First Lien Term Loan

(1M USD TERM SOFR+7.75%), 12.41% Cash, 1/18/2027

 1/18/2022 $21,247,440   21,055,931   20,699,256   6.0%
    Total Legal Software        21,055,931   20,699,256   6.0%
Madison Logic, Inc. (d) Marketing Orchestration Software 

First Lien Term Loan

(3M USD TERM SOFR+7.00%), 11.89% Cash, 12/30/2028

 12/10/2021 $19,000,000   18,626,777   18,715,000   5.4%
    Total Marketing Orchestration Software        18,626,777   18,715,000   5.4%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
ARC Health OpCo LLC (d) Mental Healthcare Services 

First Lien Term Loan

(3M USD TERM SOFR+8.48%), 13.37% Cash, 8/5/2027

 8/5/2022 $6,500,000   6,427,296   6,461,000   1.9%
ARC Health OpCo LLC (d), (j) Mental Healthcare Services 

Delayed Draw Term Loan

(3M USD TERM SOFR+8.48%), 13.37% Cash, 8/5/2027

 8/5/2022 $7,726,978   7,634,711   7,680,616   2.2%
ARC Health OpCo LLC (h) Mental Healthcare Services Class A Preferred Shares 8/5/2022  2,808,236   3,035,108   2,780,153   0.8%
    Total Mental Healthcare Services        17,097,115   16,921,769   4.9%
Chronus LLC Mentoring Software 

First Lien Term Loan

(3M USD LIBOR+5.25), 10.22% Cash, 8/26/2026

 8/26/2021 $15,000,000   14,887,780   14,890,500   4.3%
Chronus LLC Mentoring Software 

First Lien Term Loan

(3M USD LIBOR+6.00), 10.97% Cash, 8/26/2026

 8/26/2021 $3,000,000   2,973,634   2,978,100   0.9%
Chronus LLC (h) Mentoring Software Series A Preferred Stock 8/26/2021  3,000   3,000,000   3,490,403   1.0%
    Total Mentoring Software        20,861,414   21,359,003   6.2%
Omatic Software, LLC Non-profit Services 

First Lien Term Loan

(3M USD TERM SOFR+8.00%), 14.15% Cash/1.00% PIK, 1/31/2024

 5/29/2018 $13,122,781   13,091,197   13,095,223   3.8%
    Total Non-profit Services        13,091,197   13,095,223   3.8%
Emily Street Enterprises, L.L.C. Office Supplies 

Senior Secured Note

(3M USD TERM SOFR+7.50%), 12.39% Cash, 12/31/2025

 12/28/2012 $6,000,000   5,974,379   5,965,800   1.7%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests, Expires 12/31/2025 12/28/2012  49,318   400,000   406,755   0.1%
    Total Office Supplies        6,374,379   6,372,555   1.8%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Buildout, Inc. Real Estate Services 

First Lien Term Loan

(3M USD LIBOR+7.00%), 11.97% Cash, 7/9/2025

 7/9/2020 $14,000,000   13,924,435   13,855,800   4.0%
Buildout, Inc. Real Estate Services 

Delayed Draw Term Loan

(3M USD LIBOR+7.00%), 11.97% Cash, 7/9/2025

 2/12/2021 $38,500,000   38,257,589   38,103,450   11.0%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020  1,250   1,372,557   1,447,219   0.4%
    Total Real Estate Services        53,554,581   53,406,469   15.4%
Archimedes Parent LLC (h) Research Software Class A Common Units 6/27/2022  1,125,160   1,125,160   1,136,503   0.3%
Wellspring Worldwide Inc. Research Software 

First Lien Term Loan

(1M USD BSBY+7.25%), 11.83% Cash, 6/27/2027

 6/27/2022 $9,600,000   9,503,123   9,540,480   2.7%
    Total Research Software        10,628,283   10,676,983   3.0%
LFR Chicken LLC Restaurant 

First Lien Term Loan

(1M USD LIBOR+7.00%), 11.67% Cash, 11/19/2026

 11/19/2021 $12,000,000   11,906,864   11,866,800   3.4%
LFR Chicken LLC (j) Restaurant 

Delayed Draw Term Loan

(1M USD LIBOR+7.00%), 11.67% Cash, 11/19/2026

 11/19/2021 $9,000,000   8,927,326   8,900,100   2.6%
LFR Chicken LLC (h) Restaurant Series B Preferred Units 11/19/2021  497,183   1,000,000   1,177,373   0.3%
TMAC Acquisition Co., LLC Restaurant 

Unsecured Term Loan

8.00% PIK, 3/1/2024

 3/1/2018 $3,217,657   3,217,657   2,881,888   0.8%
    Total Restaurant        25,051,847   24,826,161   7.1%
Pepper Palace, Inc. (d) Specialty Food Retailer 

First Lien Term Loan

(3M USD LIBOR+6.25%), 11.22% Cash, 6/30/2026

 6/30/2021 $33,490,000   33,255,863   24,410,861   7.0%
Pepper Palace, Inc. (j) Specialty Food Retailer 

Delayed Draw Term Loan

(3M USD LIBOR+6.25%), 11.22% Cash, 6/30/2026

 6/30/2021 $-   -   -   0.0%
Pepper Palace, Inc. (j) Specialty Food Retailer 

Revolving Credit Facility

(3M USD LIBOR+6.25%), 11.22% Cash, 6/30/2026

 6/30/2021 $-   -   -   0.0%
Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest 6/30/2021  1,000,000   1,000,000   -   0.0%
    Total Specialty Food Retailer        34,255,863   24,410,861   7.0%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
ArbiterSports, LLC (d) Sports Management 

First Lien Term Loan

(3M USD LIBOR+6.50%), 11.47% Cash, 2/21/2025

 2/21/2020 $26,000,000   25,894,505   25,721,800   7.4%
ArbiterSports, LLC Sports Management 

Delayed Draw Term Loan

(3M USD LIBOR+6.50%), 11.47% Cash, 2/21/2025

 2/21/2020 $1,000,000   1,000,000   989,300   0.3%
    Total Sports Management        26,894,505   26,711,100   7.7%
Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014  100,000   100,000   2,079,325   0.6%
    Total Staffing Services        100,000   2,079,325   0.6%
JDXpert Talent Acquisition Software 

First Lien Term Loan

(3M USD LIBOR+8.50%), 13.47% Cash, 5/2/2027

 5/2/2022 $6,000,000   5,947,780   6,045,000   1.7%
JDXpert (j) Talent Acquisition Software 

Delayed Draw Term Loan

(3M USD LIBOR+8.50%), 13.47% Cash, 5/2/2027

 5/2/2022 $-   -   -   0.0%
Jobvite, Inc. (d) Talent Acquisition Software 

First Lien Term Loan

(3M USD TERM SOFR+8.00%), 12.89% Cash, 8/5/2028

 8/5/2022 $20,000,000   19,857,613   19,954,000   5.8%
    Total Talent Acquisition Software        25,805,393   25,999,000   7.5%
Sub Total Non-control/Non-affiliate investments        819,966,208   828,028,800   238.6%
Affiliate investments - 8.1% (b)                  
ETU Holdings, Inc. (f) Corporate Education Software 

First Lien Term Loan

(3M USD LIBOR+9.00%), 13.97% Cash, 8/18/2027

 8/18/2022 $7,000,000   6,935,556   7,006,300   2.0%
ETU Holdings, Inc. (f) Corporate Education Software 

Second Lien Term Loan

15.00% PIK, 2/18/2028

 8/18/2022 $5,282,563   5,235,433   5,175,327   1.5%
ETU Holdings, Inc. (f), (h) Corporate Education Software Series A-1 Preferred Stock 8/18/2022  3,000,000   3,000,000   3,072,504   0.9%
    Total Corporate Education Software        15,170,989   15,254,131   4.4%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Axero Holdings, LLC (f) Employee Collaboration Software 

First Lien Term Loan

(3M USD TERM SOFR+8.00%), 13.04% Cash, 6/30/2026

 6/30/2021 $5,500,000   5,460,448   5,513,200   1.6%
Axero Holdings, LLC (f) Employee Collaboration Software 

Delayed Draw Term Loan

(3M USD TERM SOFR+8.00%), 13.04% Cash, 6/30/2026

 6/30/2021 $1,100,000   1,090,883   1,102,640   0.3%
Axero Holdings, LLC (f), (j) Employee Collaboration Software 

Revolving Credit Facility

(3M USD TERM SOFR+8.00%), 13.04% Cash, 6/30/2026

 2/3/2022 $-   -   -   0.0%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series A Preferred Units 6/30/2021  2,000,000   2,000,000   2,498,000   0.7%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series B Preferred Units 6/30/2021  2,000,000   2,000,000   3,937,900   1.1%
    Total Employee Collaboration Software  10,551,331   13,051,740   3.7%
Sub Total Affiliate investments        25,722,320   28,305,871   8.1%
Control investments - 33.6% (b)                  
Netreo Holdings, LLC (g) IT Services First Lien Term Loan
(3M USD LIBOR +6.50%), 13.47% Cash/2.00% PIK 12/31/2025		 7/3/2018 $5,539,029   5,522,608   5,443,757   1.6%
Netreo Holdings, LLC (d), (g) IT Services Delayed Draw Term Loan
(3M USD LIBOR +6.50%), 13.47% Cash/2.00% PIK, 12/31/2025		 5/26/2020 $22,111,008   22,019,877   21,730,699   6.3%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018  4,600,677   8,344,500   16,992,742   4.9%
    Total IT Services        35,886,985   44,167,198   12.8%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities 

Other/Structured Finance Securities

0.00%, 4/20/2033

 1/22/2008 $111,000,000   28,943,904   21,176,578   6.1%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note (a), (g) Structured Finance Securities 

Other/Structured Finance Securities

(3M USD LIBOR+10.00%), 14.97%, 4/20/2033

 8/9/2021 $9,375,000   9,375,000   8,831,406   2.5%
Saratoga Investment Corp. Senior Loan Fund 2022-1, Ltd. Class E Note (a), (g) Structured Finance Securities 

Other/Structured Finance Securities

(3M USD TERM SOFR+8.55%), 13.44%, 10/20/2033

 10/28/2022 $12,250,000   11,392,500   11,354,495   3.3%
    Total Structured Finance Securities    49,711,404   41,362,479   11.9%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund 

Unsecured Loan

10.00%, 6/15/2023

 2/17/2022 $17,618,954   17,618,954   17,618,954   5.1%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (h) Investment Fund Membership Interest 2/17/2022  17,583,486   17,583,486   13,106,951   3.8%
    Total Investment Fund        35,202,440   30,725,905   8.9%
Sub Total Control investments        120,800,829   116,255,582   33.6%
TOTAL INVESTMENTS - 280.3% (b)       $966,489,357  $972,590,253   280.3%

  Number of
Shares		  Cost  Fair Value  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 27.7% (b)            
U.S. Bank Money Market (l)  96,076,273  $96,076,273  $96,076,273   27.7%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  96,076,273  $96,076,273  $96,076,273   27.7%

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

(a)Represents an investment that is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, as amended (the 1940 Act”). As of February 28, 2023, non-qualifying assets represent 8.6% of the Company’s portfolio at fair value. As a BDC, the Company generally has to invest at least 70% of its total assets in qualifying assets.

(b)Percentages are based on net assets of $346,958,042 as of February 28, 2023.

(c)Because there is no “readily available market quotations” (as defined in the 1940 Act) for these investments, the fair values of these investments were determined using significant unobservable inputs and approved in good faith by our board of directors. These investments have been included as Level 3 in the Fair Value Hierarchy (see Note 3 to the consolidated financial statements).

(d)These securities are either fully or partially pledged as collateral under the Company’s senior secured revolving credit facility (see Note 8 to the consolidated financial statements).

(e)This investment does not have a stated interest rate that is payable thereon. As a result, the 0.00% interest rate in the table above represents the effective interest rate currently earned on the investment cost and is based on the current cash interest and other income generated by the investment.

(f)

As defined in the 1940 Act, this portfolio company is an “affiliate” as we own between 5.0% and 25.0% of the outstanding voting securities. Artemis Wax Corp. is no longer an affiliate as of February 28, 2023. Transactions during the year ended February 28, 2023 in which the issuer was an affiliate are as follows:

 

Company Purchases  Sales  Total
Interest
from
Investments		  Management
Fee
Income		  Net Realized
Gain (Loss)
from
Investments		  Net Change in
Unrealized
Appreciation
(Depreciation)		 
Artemis Wax Corp $27,440,000  $6,162,526  $3,418,378  $      -  $        -  $(1,460,287)
Axero Holdings, LLC  1,089,000   -   848,422   -   -   1,951,499 
ETU Holdings, Inc.  14,880,000   -   923,437   -   -   83,142 
Total $43,409,000  $6,162,526  $5,190,237  $-  $-  $574,354 

 


 

 

(g)(g)As defined in the 1940 Act, we “control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the year ended February 28, 2023 in which the issuer was both an affiliate and a portfolio company that we control are as follows:

 

Company Purchases  Sales  Total
Interest
from
Investments		  Management
Fee
Income		  Net Realized
Gain (Loss)
from
Investments		  Net Change in
Unrealized
Appreciation
(Depreciation)		 
Netreo Holdings, LLC $8,290,000  $      -  $2,529,483  $-  $          -  $(2,363,302)
Saratoga Investment Corp. CLO 2013-1, Ltd.  -   -   1,228,486   3,269,820   -   (4,149,106)
Saratoga Investment Corp. Senior Loan Fund 2022-1, Ltd. Class E Note  11,392,500   -   552,330   -   -   (38,005)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note  -   -   1,195,662   -   -   (543,594)
Saratoga Senior Loan Fund I JV, LLC  4,493,954   -   1,483,522   -   -   - 
Saratoga Senior Loan Fund I JV, LLC  4,458,486   -   -   -   -   (3,367,599)
Total $28,634,940  $-  $6,989,483  $3,269,820  $-  $(10,461,606)

 

(h)(h)Non-income producing at February 28, 2023.

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

(j)(j)All or a portion of this investment has an unfunded commitment as of February 28, 2023. (See Note 9 to the consolidated financial statements).

(k)(k)As of February 28, 2023, the investment was on non-accrual status. The fair value of these investments was approximately $9.8 million, which represented 2.8% of the Company’s portfolio (see Note 2 to the consolidated financial statements).

(l)(l)Included within cash and cash equivalents and cash and cash equivalents, reserve accounts in the Company’s consolidated statements of assets and liabilities as of February 28, 2023.

 

BSBY - Bloomberg Short-Term Bank Yield

LIBOR - London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

 

1M USD BSBY - The 1 month USD BSBY rate as of February 28, 2023 was 4.58%.

3M USD BSBY - The 3 month USD BSBY rate as of February 28, 2023 was 4.87%.

1M USD LIBOR - The 1 month USD LIBOR rate as of February 28, 2023 was 4.67%.

3M USD LIBOR - The 3 month USD LIBOR rate as of February 28, 2023 was 4.97%.

1M USD TERM SOFR - The 1 month USD TERM SOFR rate as of February 28, 2023 was 4.66%

3M USD TERM SOFR - The 3 month USD TERM SOFR rate as of February 28, 2023 was 4.89%

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

 

See accompanying notes to consolidated financial statements

 


 

 

SARATOGA INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MayAugust 31, 2023

(unaudited)

 

Note 1. Organization

 

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

 

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

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

 

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

 

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

 

The Company has established wholly owned subsidiaries, SIA-AAP, Inc., SIA-ARC, Inc., SIA-Avionte, Inc., SIA-AX, Inc., SIA-G4, Inc., SIA-GH, Inc., SIA-MAC, Inc., SIA-MDP, Inc., SIA-PP Inc., SIA-SZ, Inc., SIA-TG, Inc., SIA-TT, Inc., SIA-Vector, Inc. and SIA-VR, Inc., which are structured as Delaware entities that are treated as corporations for U.S. federal income tax purposes and are intended to facilitate ourits compliance with the requirements to be treated as a RIC under the Code by holding equity or equity-like investments in portfolio companies organized as limited liability companies, or LLCs (or other forms of pass through entities). These entities are consolidated for accounting purposes, but are not consolidated for U.S. federal income tax purposes and may incur U.S. federal income tax expenses as a result of their ownership of portfolio companies. In February 2022, SIA-GH, Inc., SIA-TT Inc. and SIA-VR, Inc. received an approved plan of liquidation following the sale of equity held by each of the portfolio companies.

 

Our wholly owned subsidiaries, Saratoga Investment Corp. SBIC LP (“SBIC LP”), Saratoga Investment Corp. SBIC II LP (“SBIC II LP”), and Saratoga Investment Corp. SBIC III LP (“SBIC III LP”, and together with SBIC LP and SBIC II LP, the “SBIC Subsidiaries”), received an SBIC licenselicenses from the SBA on March 28, 2012, August 14, 2019, and September 29, 2022, respectively. SBIC LP’s license provided up to $150.0 million in additional long-term capital in the form of SBA debentures, while SBIC II LP’s and SBIC III LP’s SBIC licenses provide up to $175.0 million each. Under current SBIC regulations, for two or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $350.0 million with at least $175.0 million in combined regulatory capital.

  


The Company has formed a wholly owned special purpose entity, Saratoga Investment Funding II LLC (“SIF II”), a Delaware limited liability company, (“SIF II”), for the purpose of entering into a $50.0 millionthe senior secured revolving credit facility with Encina Lender Finance, LLC (the “Lender”), supported by loans held by SIF II and pledged to the Lender under the credit facility (the “Encina Credit Facility”). The Encina Credit Facility closed on October 4, 2021. During the first two years following the closing date, SIF II may request an increase in the commitment amount under the Encina Credit Facility to up to $75.0 million. The terms of the Encina Credit Facility required a minimum drawn amount of $12.5 million at all times during the first six months following the closing date, which increased to the greater of $25.0 million or 50% of the commitment amount in effect at any time thereafter. The term of the Encina Credit Facility is three years. Advances under the Encina Credit Facility bear interest at a floating rate per annum equal to LIBOR plus 4.0%, with LIBOR having a floor of 0.75%, with customary provisions related to the selection by the Lender and the Company of a replacement benchmark rate. Concurrently with the closing of the Encina Credit Facility, all remaining amounts outstanding on the Company’s existing revolving credit facility with Madison Capital Funding, LLC were repaid and the revolving credit facility terminated. On January 27, 2023, among other things, the borrowings available under the Encina Credit Facility was increased from up to $50.0 million to up to $65.0 million, the underlying benchmark rate used to compute interest changed from LIBOR to Term SOFR for one-month tenor plus a 0.10% credit spread adjustment; the applicable effective margin rate on borrowings increased from 4.00% to 4.25% and the maturity date was extended from October 4, 2024 to January 27, 2026.

 

On October 26, 2021, the Company and TJHA JV I LLC (“TJHA”) entered into a Limited Liability Company Agreement to co-manage Saratoga Senior Loan Fund I JV LLC (“SLF JV”). SLF JV is under joint control and is not consolidated. SLF JV is invested in Saratoga Investment Corp Senior Loan Fund 2022-1 Ltd. (“SLF 2022”), which is a wholly owned subsidiary of SLF JV. SLF 2022 was formed for the purpose of making investments in a diversified portfolio of broadly syndicated first lien and second lien term loans or bonds in the primary and secondary markets. On October 28, 2022, SLF 2022 issued $402.1 million of debt (the “2022 JV CLO Notes”) through a collateralized loan obligation trust (the “JV CLO trust”). The 2022 JV CLO Notes were issued pursuant to an indenture, dated October 28, 2022 (the “JV Indenture”), with U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association) (the “Trustee”) servicing as the trustee.

 


Note 2. Summary of Significant Accounting Policies

 

Basis of Presentation

 

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), are stated in U.S. Dollars and include the accounts of the Company and its wholly owned special purpose financing subsidiaries, Saratoga Investment Funding, LLC (previously known as GSC Investment Funding LLC), SIF II, SBIC LP, SBIC II LP, SBIC III LP, SIA-AAP, Inc., SIA-ARC, Inc., SIA-Avionte, Inc., SIA-AX, Inc., SIA-G4, Inc., SIA-GH, Inc., SIA-MDP, Inc., SIA-MAC, Inc., SIA-PP, Inc., SIA-SZ, Inc., SIA-TG, Inc., SIA-TT Inc., SIA-Vector, Inc. and SIA-VR, Inc. All intercompany accounts and transactions have been eliminated in consolidation. Therefore, this form 10-Q should be read in conjunction with the Company's annual report on Form 10-K for the year ended February 28, 2023. The current period's result of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending February 28, 2024. All references made to the “Company,” “we,” and “us” herein include Saratoga Investment Corp. and its consolidated subsidiaries, except as stated otherwise.

 

The Company, SBIC LP, SBIC II LP, and SBIC III LP are all considered to be investment companies for financial reporting purposes and have applied the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services — Investment Companies (“ASC 946”). There have been no changes to the Company, SBIC LP, SBIC II LP, or SBIC III LP’s status as investment companies during the three months ended MayAugust 31, 2023.

 


Principles of Consolidation

 

Under the investment company rules and regulations pursuant to ASC 946, the Company is precluded from consolidating any entity other than another investment company or controlled operating company whose business consists of providing services to the Company.  As a result, the consolidated financial statements of the Company include only the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

 

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

 

Use of Estimates in the Preparation of Financial Statements

 

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

 


Cash and Cash Equivalents

 

Cash and cash equivalents include short-term, liquid investments in a money market fund. The Company places its cash in financial institutions and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limits. Cash and cash equivalents are carried at cost which approximates fair value. Pursuant to Section 12(d)(1)(A) of the 1940 Act, the Company may not invest in another investment company, such as a money market fund, if such investment would cause the Company to exceed any of the following limitations:to:

 

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

 

●we were to hold securities in the investment company having an aggregate value in excess of 5.0% of the value of ourthe Company’s total assets; or

 

●we were to hold securities in investment companies having an aggregate value in excess of 10.0% of the value of ourthe Company’s total assets.

 

As of MayAugust 31, 2023, the Company did not exceed any of these limitations.

 


Cash and Cash Equivalents, Reserve Accounts

 

Cash and cash equivalents, reserve accounts include amounts held in designated bank accounts in the form of cash and short-term liquid investments in money market funds, and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limits, representing payments received on secured investments or other reserved amounts associated with the Encina Credit Facility within SIF II, ourheld by the Company’s wholly owned subsidiary.subsidiary, SIF II. The Company is required to use these amounts to pay interest expense, reduce borrowings, or pay other amounts in accordance with the terms of the Encina Credit Facility.

 

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

 

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

 

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

 

 May 31,
2023		 February 28,
2023		  August 31,
2023		  February 28,
2023		 
Cash and cash equivalents $21,987,196  $65,746,494  $19,305,025  $65,746,494 
Cash and cash equivalents, reserve accounts  31,165,969   30,329,779   29,127,875   30,329,779 
Total cash and cash equivalents and cash and cash equivalents, reserve accounts $53,153,165  $96,076,273  $48,432,900  $96,076,273 

 

Investment Classification

 

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

  


 

 

Investment Valuation

 

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

 

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

 

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

 

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

 

●An independent valuation firm engaged by ourthe Company’s board of directors independently reviews a selection of these preliminary valuations each quarter so that the valuation of each investment for which market quotes are not readily available is reviewed by the independent valuation firm at least once each fiscal year. We useThe Company uses a third-party independent valuation firm to value ourits investment in the subordinated notes of Saratoga Investment Corp. CLO 2013-1, Ltd. (“Saratoga CLO”), the Class F-2-R-3 Notes of the Saratoga CLO, and the Class E Notes of the SLF 2022 every quarter.

 

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

 

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

 

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

 

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

  


The Company’s investments in the subordinated notes of Saratoga CLO, Class F-2-R-3 Notes of the Saratoga CLO and the Class E Notes of SLF 2022 are carried at fair value, which is based on a discounted cash flow valuation technique that utilizes prepayment, re-investment and loss inputs based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and comparable yields for equity interests in collateralized loan obligation funds, when available, as determined by ourthe Manager and recommended to ourthe Company’s board of directors. Specifically, we usethe Company uses Intex cash flows, or an appropriate substitute, to form the basis for the valuation of ourits investment in the subordinated notes of Saratoga CLO, Class F-2-R-3 Notes of the Saratoga CLO and the Class E Notes of SLF 2022. The cash flows use a set of inputs including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The inputs are based on available market data and projections provided by third parties as well as management estimates.The Company uses the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine the valuation for our investment in Saratoga CLO.

 


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

 

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

 

In December 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted a new rule providing a framework for fund valuation practices. New Rule 2a-5 under the 1940 Act (“Rule 2a-5”) that establishes a regulatory framework for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 permits boards of directors, subject to board oversight and certain other conditions, to designate the investment adviser to perform fair value determinations. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must determine the fair value of a security. The SEC also adopted newNew Rule 31a-4 under the 1940 Act (“Rule 31a-4”) that provides thefor certain recordkeeping requirements associated with fair value determinations. Finally, the SECSecurities and Exchange Commission (the “SEC”) rescinded previously issued guidance on related issues, including the role of the board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021 and had a compliance date of September 8, 2022. While ourthe Company’s board of directors has not elected to designate Saratoga Investment Advisors as the valuation designee, the Company has adopted certain revisions to its valuationestablished policies and procedures in order complycompliance with the applicable requirements of Rule 2a-5 and Rule 31a-4.

 

Derivative Financial Instruments

 

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

 


Investment Transactions and Income Recognition

 

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

 

Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reserved when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as a reduction in principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection. At MayAugust 31, 2023, our investment in two portfolio companies were on non-accrual status with a fair value of approximately $17.7 million, or 1.6% of the fair value of our portfolio. At February 28, 2023, our investment in one portfolio company was on non-accrual status with a fair value of approximately $9.8 million, or 0.9% of the fair value of our portfolio. At May 31, 2022, our investment in one portfolio company was on non-accrual status with a fair value of approximately $10.1 million, or 1.1%1.0% of the fair value of our portfolio.

 

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

 


Payment-in-Kind Interest

 

The Company holds debt and preferred equity investments in its portfolio that contain a payment-in-kind (“PIK”) interest provision. The PIK interest, which represents contractually deferred interest added to the investment balance that is generally due at maturity, is generally recorded on thean accrual basis to the extent such amounts are expected to be collected. The Company stops accruing PIK interest if it is expected that the issuer will not be able to pay all principal and interest when due. The Company restores to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection.

 

Dividend Income

 

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

 

Structuring and Advisory Fee Income

 

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

 

Other Income

 

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

 

Deferred Debt Financing Costs

 

Financing costs incurred in connection with our credit facility and notes are deferred and amortized using the straight-line method over the life of the respective facility and debt securities. Financing costs incurred in connection with the SBA debentures of SBIC LP, SBIC II LP, and SBIC III LP are deferred and amortized using the straight-line method over the life of the debentures. Any discount or premium on the issuance of any debt is accreted and amortized using the effective interest method over the life of the respective debt security.

 

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

 


Realized Loss on Extinguishment of Debt 

 

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

 

Contingencies

 

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

 

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

 


Income Taxes

 

The Company has elected, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code. By meeting these requirements, the Company will not be subject to U.S. federal income tax on ordinary income or capital gains timely distributed to stockholders. Therefore, no provision has been recorded for federal income taxes, except as related to the Taxable Blockers (as defined below) and long-term capital gains, when applicable.

 

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

 

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

 

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

 

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

  


FASB ASC Topic 740, Income Taxes, (“ASC 740”), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet a “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current period. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the consolidated statements of operations. During the fiscal year ended February 28, 2023, the Company did not incur any interest or penalties. Although we file federal and state tax returns, our major tax jurisdiction is federal. The 2020, 2021, 2022 and 2023 federal tax years for the Company remain subject to examination by the IRS. At MayAugust 31, 2023, and February 28, 2023, there were no uncertain tax positions. The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change significantly in the next 12 months.

 


Dividends

 

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

 

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

 

Capital Gains Incentive Fee

 

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

 

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

 

Recent Accounting Pronouncements

 

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820) (“ASU 2022-03”), which clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security’s unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security’s fair value. In addition, ASU 2022-03 prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. ASU 2022-03 amendments are effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2022-03 on its consolidated financial statements.

 

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) to provide optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 established Topic 848 to provide relief during the temporary transition period and includes a sunset provision based on expectations of when the London Interbank Offered Rate (“LIBOR”) would cease being published. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which deferred the sunset day of this guidance to December 31, 2024. With the adoption of ASU 2022-06,2020-04, there was no significant impact to the Company’s financial position.

 


Risk Management

 

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

 


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

 

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

 

Note 3. Investments

 

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

 

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

 

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

 

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

 

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

 

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

 


 

 

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

 

The following table presents fair value measurements of investments, by major class, as of MayAugust 31, 2023 (dollars in thousands), according to the fair value hierarchy:

 

 Fair Value Measurements Valued Using Net Asset     Fair Value Measurements  Valued Using
Net Asset		    
 Level 1 Level 2 Level 3 Value* Total  Level 1  Level 2  Level 3  Value*  Total 
First lien term loans $     -  $     -  $917,590  $-  $917,590  $            -  $            -  $929,392  $-  $929,392 
Second lien term loans  -   -   15,185   -   15,185   -   -   15,326   -   15,326 
Unsecured term loans  -   -   20,744   -   20,744   -   -   17,619   -   17,619 
Structured finance securities  -   -   33,906   -   33,906   -   -   35,609   -   35,609 
Equity interests  -   -   88,925   7,748   96,673   -   -   91,225   9,774   100,999 
Total $-  $-  $1,076,350  $7,748  $1,084,098  $-  $-  $1,089,171  $9,774  $1,098,945 

 

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

 

The following table presents fair value measurements of investments, by major class, as of February 28, 2023 (dollars in thousands), according to the fair value hierarchy:

 

 Fair Value Measurements  Valued Using Net Asset     Fair Value Measurements  Valued Using
Net Asset		    
 Level 1  Level 2  Level 3  Value*  Total  Level 1  Level 2  Level 3  Value*  Total 
First lien term loans $       -  $      -  $798,534  $-  $798,534  $            -  $            -  $798,534  $-  $798,534 
Second lien term loans  -   -   14,936   -   14,936   -   -   14,936   -   14,936 
Unsecured term loans  -   -   20,661   -   20,661   -   -   20,661   -   20,661 
Structured finance securities  -   -   41,362   -   41,362   -   -   41,362   -   41,362 
Equity interests  -   -   83,990   13,107   97,097   -   -   83,990   13,107   97,097 
Total $-  $-  $959,483  $13,107  $972,590  $-  $-  $959,483  $13,107  $972,590 

 

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

 

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the threesix months ended MayAugust 31, 2023 (dollars in thousands):

 

 First lien term loans Second lien term loans Unsecured term loans Structured finance securities Equity interests Total  First lien
term loans		  Second lien
term loans		  Unsecured
term loans		  Structured
finance
securities		  Equity
interests		  Total 
Balance as of February 28, 2023 $798,534  $14,936  $20,661  $41,362  $83,990  $959,483  $798,534  $14,936  $20,661  $41,362  $83,990  $959,483 
Payment-in-kind and other adjustments to cost  203  200   -   (1,786)  (91)  (1,474)  800   408   -   (3,824)  (91)  (2,707)
Net accretion of discount on investments  458   3   -   -   -   461   858   4   -   -   -   862 
Net change in unrealized appreciation (depreciation) on investments  (2,198)  46   83   (5,670)  (3,224)  (10,963)  (16,192)  (22)  341   (1,929)  (924)  (18,726)
Purchases  131,660   -   -   -   8,159   139,819   159,113   -   -   -   8,159   167,272 
Sales and repayments  (11,067)  -   -   -   -   (11,067)  (13,721)  -   (3,383)  -   -   (17,104)
Net realized gain (loss) from investments  -   -   -   -   91   91   -   -   -   -   91   91 
Balance as of May 31, 2023 $917,590  $15,185  $20,744  $33,906  $88,925  $1,076,350 
Balance as of August 31, 2023 $929,392  $15,326  $17,619  $35,609  $91,225  $1,089,171 
Net change in unrealized appreciation (depreciation) for the period relating to those Level 3 assets that were still held by the Company at the end of the period $(2,153) $46  $83  $(5,670) $(3,224) $(10,918) $(16,151) $(22) $(5) $(1,929) $(925) $(19,032)

 

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

 

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

 

Transfers and restructurings, if any, are recognized at the beginning of the period in which they occur. There were no transfers or restructurings in or out of Levels 1, 2 or 3 during the threesix months ended MayAugust 31, 2023.

 


 

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the threesix months ended MayAugust 31, 2022 (dollars in thousands):

 First lien term loans Second lien term loans Unsecured term loans Structured finance securities Equity interests Total  First lien
term loans		  Second lien
term loans		  Unsecured
term loans		  Structured
finance
securities		  Equity
interests		  Total 
Balance as of February 28, 2022 $631,572  $44,386  $15,931  $38,030  $75,632  $805,551  $631,572  $44,386  $15,931  $38,030  $75,632  $805,551 
Payment-in-kind and other adjustments to cost  (221)  -   -   (1,300)  199   (1,322)  160   -   -   (2,160)  405   (1,595)
Net accretion of discount on investments  344   6   -   -   -   350   851   (17)  -   -   -   834 
Net change in unrealized appreciation (depreciation) on investments  (4,707)  (622)  (21)  (3,237)  4,623   (3,964)  (10,606)  (691)  (37)  (3,543)  (1,478)  (16,355)
Purchases  95,886   -   -   -   1,312   97,198   241,133   4,950   947   -   9,537   256,567 
Sales and repayments  (4,947)  (5,141)  -   -   -   (10,088)  (70,262)  (24,966)  -   -   (9,944)  (105,172)
Net realized gain (loss) from investments  163   -   -   -   -   163   163   -   -   -   7,944   8,107 
Balance as of May 31, 2022 $718,090  $38,629  $15,910  $33,493  $81,766  $887,888 
Balance as of August 31, 2022 $793,011  $23,662  $16,841  $32,327  $82,096  $947,937 
Net change in unrealized appreciation (depreciation) for the year relating to those Level 3 assets that were still held by the Company at the end of the period $(4,869) $(616) $(20) $(3,239) $4,623  $(4,121) $(10,543) $(881) $(37) $(3,544) $3,623  $(11,382)

Transfers and restructurings, if any, are recognized at the beginning of the period in which they occur. There were no transfers or restructurings in or out of Levels 1, 2 or 3 during the three months ended MayAugust 31, 2022.

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of MayAugust 31, 2023 were as follows (dollars in thousands):

  Fair Value  Valuation Technique Unobservable Input Range  Weighted Average* 
First lien term loans   Market Comparables Market Yield (%)  11.2% - 26.2%   13.3%
        Revenue Multiples (x)  4.1x   4.1x
  $917,590    EBITDA Multiples (x)  8.0x   8.0x
Second lien term loans  15,185  Market Comparables Market Yield (%)  15.7% - 53.6%   40.3%
Unsecured term loans    Market Comparables Market Yield (%)  19.8%   19.8%
      Market Comparables Market Quote (%)  100.0%  100.0%
   20,744  Collateral Value Coverage Net Asset Value  100.0%  100.0%
Structured finance securities    Discounted Cash Flow Discount Rate (%)  12.0% - 22.0%   16.7%
        Recovery Rate (%)  35% - 70%   70.0%
   33,906    Prepayment Rate (%)  20.0%   20.0%
Equity interests    Enterprise Value Waterfall EBITDA Multiples (x)  5.5x - 28.6x   11.9x
   88,925    Revenue Multiples (x)  1.3x - 11.2x   6.4x
                 
Total $1,076,350             

  Fair Value Valuation Technique Unobservable Input Range Weighted
Average*
First lien term loans $929,392 Market Comparables Market Yield (%) 11.3% - 18.1% 13.1%
       Revenue Multiples (x) 0.3x - 5.3x 3.5x
       EBITDA Multiples (x) 5.0x – 15.0x 11.4x
Second lien term loans  15,326 Market Comparables Market Yield (%) 15.7% - 60.9% 44.4%
       Revenue Multiples (x) 20.2x - 20.2x 20.2x
Unsecured term loans  17,619 Collateral Value Coverage Net Asset Value 100.0% 100.0%
Structured finance securities  35,609 Discounted Cash Flow Discount Rate (%) 12.0% - 22.0% 16.9%
       Recovery Rate (%) 35.0% - 70.0% 70.0%
       Prepayment Rate (%) 20.0% 20.0%
Equity interests  91,225 Enterprise Value Waterfall EBITDA Multiples (x) 0.3x - 28.6x 12.0x
       Revenue Multiples (x) 1.3x - 10.9x 6.4x
Total $1,089,171        

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

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of February 28, 2023 were as follows (dollars in thousands):

 Fair Value  Valuation Technique Unobservable Input Range  Weighted Average*  Fair Value Valuation Technique Unobservable Input Range Weighted
Average*
First lien term loans $798,534  Market Comparables Market Yield (%)  10.5% - 23.1%   12.8% $798,534 Market Comparables Market Yield (%) 10.5% - 23.1% 12.8%
       Revenue Multiples (x)  4.1x  4.1x     Revenue Multiples (x) 4.1x 4.1x
       EBITDA Multiples (x)  8.0x  8.0x     EBITDA Multiples (x) 8.0x 8.0x
Second lien term loans  14,936  Market Comparables Market Yield (%)  15.6% - 61.8%   45.8%  14,936 Market Comparables Market Yield (%) 15.6% - 61.8% 45.8%
Unsecured term loans  20,661  Market Comparables Market Yield (%)  10.0% - 28.8%   12.6%  20,661 Market Comparables Market Yield (%) 10.0% - 28.8% 12.6%
     Market Comparables Market Quote (%)  100.0%  100.0%   Market Comparables Market Quote (%) 100.0% 100.0%
     Collateral Value Coverage Net Asset Value  100.0%  100.0%   Collateral Valuae Coverage Net Asset Value 100.0% 100.0%
Structured finance securities  41,362  Discounted Cash Flow Discount Rate (%)  12.0% - 22.0%   17.6%  41,362 Discounted Cash Flow Discount Rate (%) 12.0% - 22.0% 17.6%
       Recovery Rate (%)  35.0% - 70.0%   70.0%     Recovery Rate (%) 35.0% - 70.0% 70.0%
       Prepayment Rate (%)  20.0%  20.0%     Prepayment Rate (%) 20.0% 20.0%
Equity interests  83,990  Enterprise Value Waterfall EBITDA Multiples (x)  5.5x - 28.6x   11.0x  83,990 Enterprise Value Waterfall EBITDA Multiples (x) 5.5x - 28.6x 11.0x
       Revenue Multiples (x)  1.3x - 11.2x   6.4x     Revenue Multiples (x) 1.3x - 11.2x 6.4x
Total $959,483              $959,483        

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


 

 

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

 

The composition of our investments as of MayAugust 31, 2023 at amortized cost and fair value was as follows (dollars in thousands):

 

 Investments at
Amortized Cost		 Amortized Cost
Percentage of
Total
Portfolio		 Investments at
Fair Value		 Fair Value
Percentage of
Total
Portfolio		  Investments at
Amortized Cost		  Amortized Cost
Percentage of
Total Portfolio		  Investments at
Fair Value		  Fair Value
Percentage of
Total Portfolio		 
First lien term loans $929,717   85.0% $917,590   84.7% $955,513   85.7% $929,392   84.6%
Second lien term loans  21,318   1.9   15,185   1.4   21,527   1.9   15,326   1.4 
Unsecured term loans  21,002   1.9   20,744   1.9   17,619   1.6   17,619   1.6 
Structured finance securities  47,925   4.4   33,906   3.1   45,887   4.1   35,609   3.2 
Equity interests  74,358   6.8   96,673   8.9   74,358   6.7   100,999   9.2 
Total $1,094,320   100.0% $1,084,098   100.0% $1,114,904   100.0% $1,098,945   100.0%

 

The composition of our investments as of February 28, 2023 at amortized cost and fair value was as follows (dollars in thousands):

 

 Investments at
Amortized Cost		 Amortized Cost Percentage of
Total
Portfolio		 Investments at
Fair Value		 Fair Value
Percentage of
Total
Portfolio		  Investments at
Amortized Cost		  Amortized Cost
Percentage of
Total Portfolio		  Investments at
Fair Value		  Fair Value
Percentage of
Total Portfolio		 
First lien term loans $808,464   83.7% $798,534   82.1% $808,464   83.7% $798,534   82.1%
Second lien term loans  21,114   2.2   14,936   1.5   21,114   2.2   14,936   1.5 
Unsecured term loans  21,001   2.2   20,661   2.1   21,001   2.2   20,661   2.1 
Structured finance securities  49,711   5.1   41,362   4.3   49,711   5.1   41,362   4.3 
Equity interests  66,199   6.8   97,097   10.0   66,199   6.8   97,097   10.0 
Total $966,489   100.0% $972,590   100.0% $966,489   100.0% $972,590   100.0%

 


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

 

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

  


OurThe Company’s investments in Saratoga CLO and SLF 2022 are carried at fair value, which is based on a discounted cash flow valuation technique that utilizes prepayment, re-investment and loss inputs based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and comparable yields for equity interests in collateralized loan obligation funds similar to Saratoga CLO and SLF 2022, when available, as determined by ourthe Manager and recommended to ourthe Company’s board of directors. Specifically, we usethe Company uses Intex cash flows, or an appropriate substitute, to form the basis for the valuation of ourthe investment in Saratoga CLO and SLF 2022. The cash flows use a set of inputs including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The inputs are based on available market data and projections provided by third parties as well as management estimates. WeThe Company ran Intex models based on inputs about the refinanced Saratoga CLO’s structure and the SLF 2022 structure, including capital structure, cost of liabilities and reinvestment period. We useThe Company uses the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine a valuation for our investments in Saratoga CLO and SLF 2022 at MayAugust 31, 2023. The inputs at MayAugust 31, 2023 for the valuation model include:

 

●Default rate: 2.0%

 

●Recovery rate: 35%-70%

 

●Discount rate: 12.0%-22.0%

 

●Prepayment rate: 20.0%

 

 ●Reinvestment rate / price: $97.00$98.00 for eighteensix months; then L+365bps / $99.00

The Company’s equity investment in SLF JV is measured using the proportionate share of the NAV of SLF JV, or equivalent, as practical expedient.

 

Investment Concentration

 

Set forth is a brief description of each portfolio company in which the fair value of ourthe Company’s investment represents greater than 5% of ourthe Company’s total assets as of MayAugust 31, 2023, excluding Saratoga CLO, SLF JV and SLF 2022 (see Note 4 and Note 5 for more information on Saratoga CLO, SLF JV and SLF 2022, respectively).

 

HemaTerra Holdings Company, LLC

 

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

 

Buildout, Inc.

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


 

Artemis Wax Corp.

Artemis Wax Corporation is a U.S. based retail aggregator of European Wax Center (“EWC”) franchise locations with a concentration in the northeast. Founded in 2004, EWC is the largest U.S. body waxing national chain with more than 800 locations across the country.

 

Granite Comfort, LP

 

Granite Comfort, LP is a U.S. based heating, ventilation and air conditioning (“HVAC”) company. The company provides traditional service and replacement of HVAC / plumbing systems, as well as a rental model that is in the early stages of implementation.


 

Note 4. Investment in Saratoga CLO

 

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

 

On December 14, 2018, the Company completed a third refinancing and upsize of the Saratoga CLO (the “2013-1 Reset CLO Notes”). The third Saratoga CLO refinancing, among other things, extended its reinvestment period to January 2021, and extended its legal maturity date to January 2030. Following this refinancing, the Saratoga CLO portfolio increased its aggregate principal amount from approximately $300.0 million to approximately $500.0 million of predominantly senior secured first lien term loans.

 

On February 11, 2020, the Company entered into an unsecured loan agreement (“CLO 2013-1 Warehouse 2 Loan”) with Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd. (“CLO 2013-1 Warehouse 2”), a wholly owned subsidiary of Saratoga CLO. During the fourth quarter ended February 28, 2021, the CLO 2013-1 Warehouse 2 Ltd. was repaid in full.

 

On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. A2033, and added a non-call period endedof February 2022 was also added.2022. In addition, and as part of the refinancing, the Saratoga CLO has also beenwas upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million of the CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. At August 31, 2021, the outstanding receivable of $2.6 million was repaid in full.

 

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

 

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

 


For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company accrued management fee income of $0.8 million and $0.8 million, respectively, and interest income of $0.0 million and $0.6$0.4 million, respectively, from the subordinated notes of Saratoga CLO.


For the six months ended August 31, 2023 and August 31, 2022, the Company accrued management fee income of $1.6 million and $1.6 million, respectively, and interest income of $0.0 million and $1.0 million, respectively, from the subordinated notes of Saratoga CLO.

 

As of MayAugust 31, 2023, the aggregate principal amounts of the Company’s investments in the subordinated notes and Class F-2-R-3 Notes of the Saratoga CLO was $111.0 million and $9.4 million, respectively, which had a corresponding fair value of $13.7$15.2 million and $8.8$9.0 million, respectively. The Company determines the fair value of its investment in the subordinated notes of Saratoga CLO based on the present value of the projected future cash flows of the subordinated notes over the life of Saratoga CLO. As of MayAugust 31, 2023, Saratoga CLO had investments with a principal balance of $652.8$651.6 million and a weighted average spread over LIBOR of 3.8% and had debt with a principal balance of $611.0 million with a weighted average spread over LIBOR of 2.2%. As a result, Saratoga CLO earns a “spread” between the interest income it receives on its investments and the interest expense it pays on its debt and other operating expenses, which is distributed quarterly to the Company as the holder of its subordinated notes. As of MayAugust 31, 2023, the present value of the projected future cash flows of the subordinated notes was approximately $13.7$15.2 million, using a 22.0% discount rate. The Company’s total investment in the subordinate notes of Saratoga CLO is $57.8 million, which consists of additional investments of $30 million in January 2008, $13.8 million in December 2018 and $14.0 million in February 2021; to date, the Company has since received distributions of $79.5 million, management fees of $32.7$33.5 million and incentive fees of $1.2 million.

 

As of February 28, 2023, the Company determined that the fair value of its investment in the subordinated notes of Saratoga CLO was $21.2 million. As of February 28, 2023, the fair value of its investment in the Class F-R-3 Notes of Saratoga CLO was $8.8 million. As of February 28, 2023, Saratoga CLO had investments with a principal balance of $645.6 million and a weighted average spread over LIBOR of 3.8% and had debt with a principal balance of $611.0 million with a weighted average spread over LIBOR of 2.2%. As of February 28, 2023, the present value of the projected future cash flows of the subordinated notes, was approximately $21.2 million, using a 22.0% discount rate. The Company’s total investment in the subordinate notes of Saratoga CLO is $57.8 million, which consists of additional investments of $30 million in January 2008, $13.8 million in December 2018 and $14.0 million in February 2021; to date2021. As of February 28, 2023, the Company has since received distributions of $77.7 million, management fees of $31.9 million and incentive fees of $1.2 million.

 

Below is certain financial information from the separate financial statements of Saratoga CLO as of MayAugust 31, 2023 (unaudited) and February 28, 2023 and for the three and six months ended MayAugust 31, 2023 (unaudited) and MayAugust 31, 2022 (unaudited).

 


 

 

Saratoga Investment Corp. CLO 2013-1, Ltd.

Statements of Assets and Liabilities

 

 May 31,
2023		 February 28,
2023		  August 31,
2023		  February 28,
2023		 
      (unaudited)    
ASSETS          
Investments at fair value          
Loans at fair value (amortized cost of $640,919,738 and $645,599,001, respectively) $590,856,540 $605,954,468 
Loans at fair value (amortized cost of $639,305,552 and $645,599,001, respectively) $602,604,076  $605,954,468 
Equities at fair value (amortized cost of $440,405 and $0, respectively)  521,832  -   512,853   - 
Total investments at fair value (amortized cost of $641,360,143 and $645,599,001, respectively) 591,378,372 605,954,468 
Total investments at fair value (amortized cost of $639,745,957 and $645,599,001, respectively)  603,116,929   605,954,468 
Cash and cash equivalents 13,354,715 23,776,950   14,149,358   23,776,950 
Receivable from open trades 998,500 1,827,460   418,500   1,827,460 
Interest receivable (net of reserve of $309,816 and $234,690, respectively) 3,253,262 3,026,720 
Interest receivable (net of reserve of $620,629 and $234,690, respectively)  4,683,582   3,026,720 
Due from affiliate (See Note 7) 159,774 119,150   -   119,150 
Prepaid expenses and other assets  107,508  152,760   74,498   152,760 
Total assets $609,252,131 $634,857,508  $622,442,867  $634,857,508 
             
LIABILITIES             
Interest payable $5,199,562 $4,662,695  $5,561,147  $4,662,695 
Payable from open trades 7,853,385 23,184,337   6,690,531   23,184,337 
Accrued base management fee 72,405 72,762   72,943   72,762 
Accrued subordinated management fee 289,621 291,047   291,774   291,047 
Accounts payable and accrued expenses 102,888 82,565   98,902   82,565 
Saratoga Investment Corp. CLO 2013-1, Ltd. Notes:             
Class A-1-R-3 Senior Secured Floating Rate Notes 357,500,000 357,500,000   357,500,000   357,500,000 
Class A-2-R-3 Senior Secured Floating Rate Notes 65,000,000 65,000,000   65,000,000   65,000,000 
Class B-FL-R-3 Senior Secured Floating Rate Notes 60,500,000 60,500,000   60,500,000   60,500,000 
Class B-FXD-R-3 Senior Secured Fixed Rate Notes 11,000,000 11,000,000   11,000,000   11,000,000 
Class C-FL-R-3 Deferrable Mezzanine Floating Rate Notes 26,000,000 26,000,000   26,000,000   26,000,000 
Class C-FXD-R-3 Deferrable Mezzanine Fixed Rate Notes 6,500,000 6,500,000   6,500,000   6,500,000 
Class D-R-3 Deferrable Mezzanine Floating Rate Notes 39,000,000 39,000,000   39,000,000   39,000,000 
Discount on Class D-R-3 Notes (238,167) (244,234)  (232,101)  (244,234)
Class E-R-3 Deferrable Mezzanine Floating Rate Notes 27,625,000 27,625,000   27,625,000   27,625,000 
Discount on Class E-R-3 Notes (2,474,293) (2,537,315)  (2,411,271)  (2,537,315)
Class F-1-R-3 Notes Deferrable Junior Floating Rate Notes 8,500,000 8,500,000   8,500,000   8,500,000 
Class F-2-R-3 Notes Deferrable Junior Floating Rate Notes 9,375,000 9,375,000   9,375,000   9,375,000 
Deferred debt financing costs (1,849,613) (1,897,076)  (1,802,150)  (1,897,076)
Subordinated Notes 111,000,000 111,000,000   111,000,000   111,000,000 
Discount on Subordinated Notes  (39,133,594)  (40,130,353)  (38,136,836)  (40,130,353)
Total liabilities  691,822,194  705,484,428   692,132,939   705,484,428 
NET ASSETS             
Ordinary equity, par value $1.00, 250 ordinary shares authorized, 250 and 250 common shares issued and outstanding, respectively 250 250   250   250 
Total distributable earnings (loss)  (82,570,313)  (70,627,170)  (69,690,322)  (70,627,170)
Total net deficit  (82,570,063)  (70,626,920)  (69,690,072)  (70,626,920)
Total liabilities and net assets $609,252,131 $634,857,508  $622,442,867  $634,857,508 

 

See accompanying notes to financial statements.

 


 

 

Saratoga Investment Corp. CLO 2013-1, Ltd.

Statements of Operations

(unaudited)

 

  For the three months ended  For the six months ended 
  August 31,
2023		  August 31,
2022		  August 31,
2023		  August 31,
2022		 
INVESTMENT INCOME            
Total interest from investments $15,662,824  $9,176,167  $30,640,303  $17,321,614 
Interest from cash and cash equivalents  156,192   6,105   341,236   6,105 
Other income  216,150   12,108   470,224   115,604 
Total investment income  16,035,166   9,194,380   31,451,763   17,443,323 
EXPENSES                
Interest and debt financing expenses  14,780,606   8,577,449   28,704,737   16,109,813 
Base management fee  163,450   163,405   326,808   326,598 
Subordinated management fee  653,801   653,619   1,307,231   1,306,390 
Professional fees  133,365   129,229   172,891   210,393 
Trustee expenses  66,540   64,742   129,034   132,828 
Other expense  68,889   113,216   139,885   151,305 
Total expenses  15,866,651   9,701,660   30,780,586   18,237,327 
NET INVESTMENT INCOME (LOSS)  168,515   (507,280)  671,177   (794,004)
                 
REALIZED AND UNREALIZED LOSS ON INVESTMENTS                
Net realized loss from investments  (641,267)  (1,144,858)  (2,749,834)  (1,067,201)
Net change in unrealized depreciation on investments  13,352,743   (1,544,463)  3,015,505   (26,226,451)
Net realized and unrealized gain (loss) on investments  12,711,476   (2,689,321)  265,671   (27,293,652)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $12,879,991  $(3,196,601) $936,848  $(28,087,656)

  For the three months ended 
  May 31,
2023		  May 31,
2022		 
INVESTMENT INCOME      
Total interest from investments $14,977,479  $8,145,447 
Interest from cash and cash equivalents  185,044   - 
Other income  254,074   103,496 
Total investment income  15,416,597   8,248,943 
EXPENSES        
Interest and debt financing expenses  13,924,131   7,532,364 
Base management fee  163,358   163,193 
Subordinated management fee  

653,430

   652,771 
Professional fees  39,526   81,164 
Trustee expenses  62,494   68,086 
Other expense  70,996   38,089 
Total expenses  14,913,935   8,535,667 
NET INVESTMENT INCOME (LOSS)  502,662   (286,724)
         
REALIZED AND UNREALIZED LOSS ON INVESTMENTS        
Net realized loss from investments  (2,108,567)  77,657 
Net change in unrealized depreciation on investments  (10,337,238)  (24,681,988)
Net realized and unrealized gain (loss) on investments  (12,445,805)  (24,604,331)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $(11,943,143) $(24,891,055)

See accompanying notes to financial statements

 


 

 

Saratoga Investment Corp. CLO 2013-1, Ltd.

Schedule of Investments

 

MayAugust 31, 2023

(unaudited)

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		 Current
Rate
(All In)		 Maturity
Date		  Principal/
Number
of Shares		  Cost  Fair
Value		  Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		 Current
Rate
(All In)		 Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		 
Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate Common Stock Equity                 15,981  $-  $65,043 
Isagenix International, LLC Beverage, Food & Tobacco   Common Stock           86,398 $- $-  Beverage, Food & Tobacco Common Stock Equity                 86,398   -   - 
URS TOPCO LLC Transportation: Cargo   Common Stock           25,330 440,405 521,832  Transportation: Cargo Common Stock Equity                 25,330   440,405   447,810 
19TH HOLDINGS GOLF, LLC Consumer goods: Durable Term Loan Loan  1M USD SOFR+ 3.25% 0.50% 8.39% 2/7/2029 $2,492,481 2,391,979 2,353,849  Consumer goods: Durable Term Loan Loan 1M USD SOFR+ 3.25%  0.50%  8.67% 2/7/2029 $2,486,203   2,389,059   2,430,263 
888 Acquisitions Limited Hotel, Gaming & Leisure Term Loan B Loan  6M USD SOFR+ 5.25% 0.00% 10.21% 7/8/2028 2,489,130 2,150,159 2,252,663  Hotel, Gaming & Leisure Term Loan B Loan 6M USD SOFR+ 5.25%  0.00%  10.21% 7/8/2028  2,483,696   2,157,622   2,303,628 
ADMI Corp. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+ 3.00% 0.00% 8.15% 4/30/2025 1,905,276 1,902,725 1,810,812  Healthcare & Pharmaceuticals Term Loan B Loan 1M USD SOFR+ 3.00%  0.00%  8.45% 4/30/2025  1,900,276   1,897,987   1,822,782 
Adtalem Global Education Inc. Services: Business Term Loan B (02/21) Loan  1M USD LIBOR+ 4.00% 0.75% 9.15% 8/11/2028 691,846 686,717 690,463  Services: Business Term Loan B (02/21) Loan 1M USD SOFR+ 4.00%  0.75%  9.45% 8/11/2028  691,846   686,842   691,632 
Aegis Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+ 5.50% 1.00% 10.84% 5/9/2025 2,339,293 2,333,100 2,250,587  Healthcare & Pharmaceuticals Term Loan Loan 3M USD SOFR+ 5.50%  1.00%  11.13% 5/9/2025  2,328,986   2,323,225   2,231,471 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan B (03/23) Loan  1M USD SOFR+ 3.00% 0.00% 7.99% 5/1/2030 1,678,901 1,666,335 1,656,874  Healthcare & Pharmaceuticals Term Loan B (03/23) Loan  3M USD SOFR+ 3.00%  0.00%  8.25% 5/1/2030  1,678,901   1,666,633   1,671,564 
AHEAD DB Holdings, LLC Services: Business Term Loan (04/21) Loan  3M USD SOFR+ 3.75% 0.75% 8.91% 10/18/2027 2,947,500 2,868,078 2,779,876  Services: Business Term Loan (04/21) Loan  3M USD SOFR+ 3.75%  0.75%  9.09% 10/18/2027  2,940,000   2,864,261   2,869,264 
Air Canada Transportation: Consumer Term Loan B (07/21) Loan  3M USD LIBOR+ 3.50% 0.75% 8.84% 8/11/2028 1,985,000 1,852,744 1,977,139  Transportation: Consumer Term Loan B (07/21) Loan  3M USD SOFR+ 3.50%  0.75%  9.13% 8/11/2028  1,980,000   1,852,750   1,979,644 
AIS HoldCo, LLC Services: Business Term Loan Loan  3M USD LIBOR+ 5.00% 0.00% 10.27% 8/15/2025 4,760,410 4,681,500 4,718,756  Services: Business Term Loan Loan  3M USD SOFR+ 5.00%  0.00%  10.63% 8/15/2025  4,690,915   4,620,736   4,585,369 
AIT Worldwide Logistics Holdings, Inc. Transportation: Cargo Term Loan (04/21) Loan  1M USD LIBOR+ 4.75% 0.75% 9.85% 4/6/2028 2,493,671 2,334,109 2,373,351  Transportation: Cargo Term Loan (04/21) Loan  1M USD SOFR+ 4.75%  0.75%  10.16% 4/6/2028  2,487,342   2,333,826   2,451,076 
Alchemy US Holdco 1, LLC Metals & Mining Term Loan Loan  1M USD LIBOR+ 5.50% 0.00% 5.60% 10/10/2025 1,654,803 1,645,239 1,562,962  Metals & Mining Term Loan Loan  1M USD LIBOR+ 7.32%  0.00%  7.42% 10/10/2025  1,654,803   1,646,087   1,624,471 
AlixPartners, LLP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan  1M USD LIBOR+ 2.50% 0.50% 7.65% 2/4/2028 245,000 244,668 242,447  Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan  1M USD SOFR+ 2.75%  0.50%  8.20% 2/4/2028  244,375   244,062   244,001 
Alkermes, Inc. Healthcare & Pharmaceuticals Term Loan B (3/21) Loan  1M USD LIBOR+ 2.50% 0.50% 7.62% 3/12/2026 2,120,808 2,108,871 2,057,184  Healthcare & Pharmaceuticals Term Loan B (3/21) Loan  1M USD SOFR+ 2.50%  0.50%  7.93% 3/12/2026  2,115,398   2,104,178   2,062,513 
Allen Media, LLC Media: Diversified & Production Term Loan (7/21) Loan  3M USD SOFR+ 5.50% 0.00% 10.55% 2/10/2027 4,382,963 4,359,520 3,791,263  Media: Diversified & Production Term Loan (7/21) Loan  3M USD SOFR+ 5.50%  0.00%  10.89% 2/10/2027  4,371,665   4,349,322   3,787,742 
Alliant Holdings Intermediate, LLC Banking, Finance, Insurance & Real Estate Term Loan B4 Loan  1M USD LIBOR+ 3.50% 0.50% 8.63% 11/5/2027 985,000 984,506 958,819  Banking, Finance, Insurance & Real Estate Term Loan B4 Loan 1M USD LIBOR+ 3.50%  0.50%  8.93% 11/5/2027  982,500   982,008   981,537 
Allied Universal Holdco LLC Services: Business Term Loan 4/21 Loan  1M USD SOFR+ 3.75% 0.50% 9.00% 5/12/2028 1,970,000 1,962,711 1,848,353 
Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate Term Loan B (03/18) Loan  3M USD SOFR+ 5.00% 1.00% 9.99% 4/30/2025 1,126,283 1,125,179 893,514 
Altium Packaging LLC Containers, Packaging & Glass Term Loan (01/21) Loan  1M USD LIBOR+ 2.75% 0.50% 7.90% 1/29/2028 490,000 488,349 474,609 
American Axle & Manufacturing Inc. Automotive Term Loan (12/22) Loan  6M USD SOFR+ 3.50% 0.50% 8.44% 12/13/2029 497,500 483,398 488,794 
American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan (01/23) Loan  1M USD SOFR+ 6.00% 1.00% 11.15% 4/5/2028 3,005,329 3,003,897 2,967,763 
American Trailer World Corp Automotive Term Loan Loan  1M USD SOFR+ 3.75% 0.75% 9.00% 3/3/2028 1,357,439 1,355,133 1,170,112 
AmWINS Group, LLC Banking, Finance, Insurance & Real Estate Term Loan 2/21 Loan  1M USD LIBOR+ 2.25% 0.75% 7.40% 2/17/2028 1,955,020 1,936,956 1,913,887 
Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan  3M USD LIBOR+ 3.75% 0.00% 8.91% 8/11/2025 955,000 953,443 731,530 
Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan  3M USD LIBOR+ 2.75% 1.00% 7.96% 12/7/2023 468,894 468,743 353,175 
Anchor Packaging, LLC Containers, Packaging & Glass Term Loan B Loan  1M USD LIBOR+ 3.50% 0.00% 8.65% 7/18/2026 1,974,684 1,949,219 1,917,911 
ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+ 6.00% 0.75% 11.15% 11/19/2027 2,962,500 2,917,994 2,927,335 
AP Core Holdings II LLC High Tech Industries Term Loan B1 Loan  1M USD LIBOR+ 5.50% 0.75% 10.65% 9/1/2027 1,850,000 1,829,440 1,763,291 
AP Core Holdings II LLC High Tech Industries Term Loan B2 Loan  1M USD LIBOR+ 5.50% 0.75% 10.65% 9/1/2027 500,000 494,452 476,250 
APEX GROUP TREASURY LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  3M USD SOFR+ 5.00% 0.50% 9.99% 7/26/2028 498,750 468,510 488,775 
APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan  1M USD SOFR+ 2.50% 0.00% 7.75% 10/1/2026 1,757,184 1,752,298 1,752,791 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		   SOFR/
LIBOR
Floor		   Current
Rate
(All In)		  Maturity
Date		   Principal/
Number
of Shares		  Cost  Fair
Value  		 
APLP Holdings Limited Partnership Energy: Electricity Term Loan B (3/21) Loan  3M USD LIBOR+ 3.75%  1.00%  8.91% 5/14/2027  372,973  370,439  369,866 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD SOFR+ 2.75%  0.00%  8.02% 5/15/2026  2,931,472  2,908,077  2,609,010 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 (2/21) Loan  1M USD SOFR+ 3.50%  0.50%  8.77% 3/6/2028  980,000  972,917  852,600 
AppLovin Corporation High Tech Industries Term Loan B Loan  1M USD SOFR+ 3.35%  0.00%  8.50% 8/15/2025  977,041  977,041  972,156 
AppLovin Corporation High Tech Industries Term Loan (10/21) Loan  1M USD SOFR+ 3.10%  0.50%  8.25% 10/21/2028  1,485,000  1,482,162  1,461,240 
Aramark Corporation Services: Consumer Term Loan Loan  1M USD LIBOR+ 1.75%  0.00%  6.90% 1/15/2027  2,331,250  2,283,700  2,296,281 
Aramark Corporation Services: Consumer Term Loan B (4/21) Loan  1M USD LIBOR+ 2.50%  0.00%  7.65% 4/1/2028  1,753,715  1,747,630  1,746,700 
ARC FALCON I INC. Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+ 3.75%  0.50%  8.90% 9/23/2028  988,774  985,636  886,604 
Arches Buyer Inc. Services: Consumer Term Loan B Loan  1M USD SOFR+ 3.25%  0.50%  8.50% 12/6/2027  1,481,061  1,473,587  1,371,832 
ARCIS GOLF LLC Services: Consumer Term Loan B Loan  1M USD LIBOR+ 4.25%  0.50%  9.40% 11/19/2028  400,000  396,000  397,000 
ARCIS GOLF LLC (a) Services: Consumer Delayed Draw Term Loan Loan  1M USD LIBOR+ 4.25%  0.50%  0.00% 11/23/2028  -  (1,000) (750)
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan  1M USD SOFR+ 4.25%  0.00%  9.50% 10/1/2025  1,911,213  1,908,875  1,901,657 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD SOFR+ 4.50%  0.00%  9.41% 3/7/2030  750,000  735,000  735,233 
ASP BLADE HOLDINGS, INC. Capital Equipment Term Loan Loan  3M USD LIBOR+ 4.00%  0.50%  9.16% 10/7/2028  98,824  98,451  83,349 
Asplundh Tree Expert, LLC Services: Business Term Loan 2/21 Loan  1M USD SOFR+ 1.75%  0.00%  7.00% 9/7/2027  975,000  972,028  967,415 
AssuredPartners Capital, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (2/20) Loan  1M USD SOFR+ 3.50%  0.00%  8.77% 2/12/2027  987,245  984,518  959,484 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Incremental Term Loan (7/21) Loan  1M USD SOFR+ 3.50%  0.50%  8.77% 2/12/2027  982,500  982,500  954,872 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 3.50%  0.50%  8.65% 2/12/2027  495,000  494,226  480,977 
ASTRO ONE ACQUISITION CORPORATION Consumer goods: Durable Term Loan Loan  3M USD LIBOR+ 5.50%  0.75%  10.66% 9/15/2028  2,962,500  2,939,647  1,860,095 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan  1M USD LIBOR+ 3.25%  0.00%  8.40% 12/18/2026  2,957,295  2,950,225  2,729,346 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B10 Loan  1M USD SOFR+ 4.00%  0.00%  9.25% 8/19/2028  1,990,000  1,900,358  1,823,895 
ATHENAHEALTH GROUP INC. Healthcare & Pharmaceuticals Term Loan B (2/22) Loan  1M USD SOFR+ 3.50%  0.50%  8.60% 2/15/2029  1,327,200  1,322,486  1,247,568 
ATHENAHEALTH GROUP INC. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (02/22) Loan  1M USD SOFR+ 3.50%  0.50%  3.50% 2/15/2029  -  -  (9,783)
Avison Young (Canada) Inc Services: Business Term Loan Loan  1M USD LIBOR+ 5.75%  0.00%  8.12% 1/31/2026  3,362,103  3,338,427  2,373,645 
Avison Young (Canada) Inc Services: Business Term Loan (08/22) Loan  1M USD SOFR+ 7.00%  0.00%  12.27% 1/31/2026  746,250  709,938  559,688 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3 Loan  1M USD LIBOR+ 1.75%  0.75%  6.90% 1/15/2025  1,000,000  940,796  995,110 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 (7/21) Loan  1M USD LIBOR+ 2.25%  0.50%  7.40% 12/1/2027  488,750  485,497  484,170 
Axalta Coating Systems Dutch Holding B B.V. Chemicals, Plastics, & Rubber Term Loan B-4 Dollar Loan  3M USD SOFR+ 3.00%  0.50%  7.90% 12/20/2029  937,500  928,917  937,284 
AZURITY PHARMACEUTICALS, INC. Healthcare & Pharmaceuticals Term Loan B Loan  3M USD LIBOR+ 6.00%  0.75%  11.19% 9/20/2027  468,750  457,410  447,656 
B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan  1M USD LIBOR+ 2.50%  0.00%  7.65% 10/10/2026  579,183  576,326  556,635 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan  1M USD LIBOR+ 1.75%  0.00%  6.90% 11/19/2026  1,451,250  1,428,310  1,419,047 
BAKELITE UK INTERMEDIATE LTD. Chemicals, Plastics, & Rubber Term Loan Loan  3M USD SOFR+ 4.00%  0.50%  9.05% 5/29/2029  992,500  988,402  933,774 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+ 3.50%  0.50%  8.61% 10/14/2027  1,223,213  1,213,297  1,198,748 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
Allied Universal Holdco LLC Services: Business Term Loan 4/21 Loan  1M USD SOFR+ 3.75%  0.50%  9.18% 5/12/2028  1,965,000   1,957,914   1,907,897 
Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate Term Loan B (03/18) Loan  3M USD SOFR+ 5.00%  1.00%  10.34% 4/30/2025  1,139,235   1,138,397   912,527 
Altium Packaging LLC Containers, Packaging & Glass Term Loan (01/21) Loan  1M USD SOFR+ 2.75%  0.50%  8.20% 1/29/2028  488,750   487,157   485,084 
American Axle & Manufacturing Inc. Automotive Term Loan (12/22) Loan  6M USD SOFR+ 3.50%  0.50%  8.44% 12/13/2029  492,500   478,840   490,500 
American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan (01/23) Loan  1M USD SOFR+ 6.00%  1.00%  11.33% 4/5/2028  2,997,797   2,996,185   2,993,121 
AmWINS Group, LLC Banking, Finance, Insurance & Real Estate Term Loan 2/21 Loan  1M USD SOFR+ 2.25%  0.75%  7.70% 2/17/2028  1,950,023   1,932,535   1,947,586 
Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan  3M USD SOFR+ 3.75%  0.00%  9.25% 8/11/2025  952,500   951,018   710,803 
Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan  6M USD LIBOR+ 2.75%  1.00%  8.04% 12/7/2023  467,650   467,545   382,500 
Anchor Packaging, LLC Containers, Packaging & Glass Term Loan B Loan  1M USD SOFR+ 3.50%  0.00%  8.93% 7/18/2026  1,969,554   1,945,580   1,943,300 
ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD SOFR+ 6.00%  0.75%  11.43% 11/19/2027  2,955,000   2,912,144   2,944,835 
AP Core Holdings II LLC High Tech Industries Term Loan B2 Loan  1M USD SOFR+ 5.50%  0.75%  10.95% 9/1/2027  500,000   494,609   485,000 
AP Core Holdings II LLC High Tech Industries Term Loan B1 Loan  1M USD SOFR+ 5.50%  0.75%  10.95% 9/1/2027  1,825,000   1,805,295   1,784,503 
APEX GROUP TREASURY LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  3M USD SOFR+ 5.00%  0.50%  10.31% 7/26/2028  497,500   468,433   496,878 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		   SOFR/
LIBOR
Floor		   Current
Rate
(All In)		  Maturity
Date		   Principal/
Number
of Shares		  Cost  Fair
Value		 
Bausch Health Companies Inc. Healthcare & Pharmaceuticals Term Loan B (1/22) Loan  1M USD SOFR+ 5.25%  0.50%  10.42% 2/1/2027  1,925,000  1,751,630  1,513,724 
Belfor Holdings Inc. Services: Consumer Term Loan Loan  1M USD LIBOR+ 4.00%  0.00%  9.15% 4/6/2026  244,911  244,911  243,277 
Belfor Holdings Inc. Services: Consumer Term Loan B-2 (3/22) Loan  1M USD SOFR+ 4.25%  0.50%  9.40% 4/6/2026  1,992,367  1,967,661  1,984,895 
Belron Finance US LLC Automotive Term Loan B (3/21) Loan  3M USD LIBOR+ 2.43%  0.50%  7.80% 4/13/2028  1,960,000  1,946,195  1,953,258 
Belron Finance US LLC Automotive Term Loan (04/23) Loan  3M USD SOFR+ 2.75%  0.50%  7.83% 4/17/2029  250,000  248,774  248,908 
Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Term Loan Loan  3M USD SOFR+ 3.25%  0.50%  8.25% 1/24/2029  1,985,000  1,984,133  1,809,665 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+ 2.25%  0.00%  7.40% 4/23/2026  977,215  973,032  908,810 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan (6/21) Loan  1M USD LIBOR+ 2.75%  0.50%  7.90% 4/23/2026  1,461,413  1,454,733  1,362,767 
Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber Term Loan (2/21) Loan  3M USD LIBOR+ 2.50%  0.00%  7.66% 3/4/2028  980,000  978,421  954,275 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan  1M USD SOFR+ 2.00%  0.00%  7.25% 5/24/2027  1,451,299  1,445,805  1,406,251 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan  12/22 Loan  1M USD SOFR+ 3.50%  0.50%  8.75% 12/12/2029  497,500  485,690  493,396 
Boxer Parent Company, Inc. High Tech Industries Term Loan (2/21) Loan  1M USD LIBOR+ 3.75%  0.00%  8.90% 10/2/2025  515,281  515,281  507,505 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Term Loan B-3 Loan  1M USD LIBOR+ 3.50%  0.00%  8.65% 3/5/2026  980,000  980,000  949,865 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan  1M USD LIBOR+ 3.00%  0.00%  8.15% 1/22/2027  2,941,205  2,937,710  2,854,822 
Brookfield WEC Holdings Inc. Energy: Electricity Term Loan (1/21) Loan  1M USD LIBOR+ 2.75%  0.50%  7.90% 8/1/2025  1,458,882  1,460,165  1,441,944 
BROWN GROUP HOLDING, LLC Aerospace & Defense Term Loan B-2 Loan  1M USD SOFR+ 3.75%  0.00%  8.90% 7/1/2029  497,500  486,338  489,858 
Buckeye Partners, L.P. Utilities: Oil & Gas Term Loan (1/21) Loan  1M USD LIBOR+ 2.25%  0.00%  7.28% 11/1/2026  1,945,213  1,936,694  1,917,143 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+ 3.50%  0.50%  8.65% 3/31/2028  2,456,250  2,438,591  2,351,859 
Callaway Golf Company Retail Term Loan B Loan  1M USD SOFR+ 3.50%  0.00%  8.75% 3/9/2030  500,000  495,047  492,145 
Camping World, Inc. Retail Term Loan B (5/21) Loan  1M USD LIBOR+ 2.50%  0.75%  7.61% 6/5/2028  2,481,013  2,271,238  2,300,023 
CareerBuilder, LLC Services: Business Term Loan Loan  3M USD LIBOR+ 6.75%  1.00%  11.91% 7/31/2023  5,265,749  5,248,888  3,429,319 
Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan  1M USD LIBOR+ 3.75%  0.00%  8.90% 1/27/2027  1,959,198  1,951,012  1,368,715 
CASTLELAKE AVIATION LLC Aerospace & Defense Term Loan B Loan  3M USD SOFR+ 2.75%  0.50%  7.78% 10/21/2027  997,500  990,336  975,475 
CBI BUYER, INC. Consumer goods: Durable Term Loan Loan  1M USD LIBOR+ 3.25%  0.50%  8.36% 1/6/2028  2,962,349  2,813,816  1,821,845 
CCC Intelligent Solutions Inc. Services: Business Term Loan B Loan  1M USD LIBOR+ 2.25%  0.50%  7.40% 9/16/2028  246,875  246,457  242,466 
CCI Buyer, Inc Telecommunications Term Loan Loan  3M USD SOFR+ 4.00%  0.75%  8.90% 12/17/2027  245,000  243,335  232,598 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+ 3.75%  0.75%  8.91% 3/5/2028  980,000  976,504  935,900 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan Loan  3M USD SOFR+ 4.25%  0.50%  9.21% 3/5/2028  997,500  950,926  952,613 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+ 5.50%  0.00%  10.98% 9/25/2025  2,393,750  2,385,103  1,605,321 
CDK GLOBAL, INC. High Tech Industries Term Loan B Loan  3M USD SOFR+ 4.25%  0.50%  9.15% 7/6/2029  997,500  970,032  981,390 
Cengage Learning, Inc. Media: Advertising, Printing & Publishing Term Loan B (6/21) Loan  6M USD LIBOR+ 4.75%  1.00%  9.88% 7/14/2026  2,955,000  2,936,136  2,783,994 
CENTURI GROUP, INC. Construction & Building Term Loan B Loan  3M USD LIBOR+ 2.25%  0.50%  7.73% 8/27/2028  875,830  869,235  867,229 
CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan  1M USD SOFR+ 2.25%  0.00%  7.52% 3/15/2027  3,875,160  3,871,908  2,660,414 
Charlotte Buyer, Inc. Services: Business Term Loan B Loan  1M USD SOFR+ 5.25%  0.00%  10.30% 2/11/2028  1,496,250  1,403,536  1,427,991 
Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan  1M USD SOFR+ 1.75%  0.00%  7.00% 4/3/2025  902,374  880,889  883,875 
Churchill Downs Incorporated Hotel, Gaming & Leisure Term Loan B1 (3/21) Loan  1M USD SOFR+ 2.00%  0.00%  7.25% 3/17/2028  490,000  489,227  482,650 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan  1M USD SOFR+ 2.50%  0.00%  7.95% 10/1/2026  1,757,184   1,752,477   1,759,697 
APLP Holdings Limited Partnership Energy: Electricity Term Loan B (3/21) Loan 3M USD LIBOR+ 3.75%  1.00%  9.29% 5/14/2027  318,919   316,836   316,527 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD SOFR+ 2.75%  0.00%  8.18% 5/15/2026  2,923,858   2,901,774   2,733,807 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 (2/21) Loan  1M USD SOFR+ 3.50%  0.50%  8.93% 3/6/2028  977,500   970,599   909,075 
AppLovin Corporation High Tech Industries Term Loan (10/21) Loan  1M USD SOFR+ 3.10%  0.50%  8.43% 10/21/2028  1,481,250   1,478,446   1,477,547 
AppLovin Corporation High Tech Industries Term Loan (08/23) Loan  1M USD SOFR+ 3.00%  0.50%  8.41% 8/15/2030  974,490   974,490   971,079 
Aramark Services, Inc. Services: Consumer Term Loan Loan  1M USD SOFR+ 1.75%  0.00%  7.20% 1/15/2027  2,331,250   2,286,538   2,323,977 
Aramark Services, Inc. Services: Consumer Term Loan B (4/21) Loan  1M USD SOFR+ 2.50%  0.00%  7.95% 4/1/2028  1,753,715   1,747,790   1,751,523 
ARC FALCON I INC. Chemicals, Plastics, & Rubber Term Loan Loan  1M USD SOFR+ 3.75%  0.50%  9.18% 9/23/2028  986,274   983,261   963,008 
Arches Buyer Inc. Services: Consumer Term Loan B Loan  1M USD SOFR+ 3.25%  0.50%  8.68% 12/6/2027  1,469,697   1,462,459   1,427,208 
ARCIS GOLF LLC (a) Services: Consumer Delayed Draw Term Loan Loan  1M USD SOFR+ 4.25%  0.50%  9.70% 11/23/2028  -   (1,000)  (250)
ARCIS GOLF LLC Services: Consumer Term Loan B Loan  1M USD SOFR+ 4.25%  0.50%  9.70% 11/19/2028  398,990   395,018   397,992 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan  1M USD SOFR+ 4.25%  0.00%  9.68% 10/1/2025  1,906,223   1,904,090   1,909,597 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD SOFR+ 4.50%  0.00%  9.92% 3/8/2030  750,000   735,157   747,893 
Asplundh Tree Expert, LLC Services: Business Term Loan 2/21 Loan  1M USD SOFR+ 1.75%  0.00%  7.18% 9/7/2027  972,500   969,618   970,983 
AssuredPartners Capital, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (2/20) Loan  1M USD SOFR+ 3.50%  0.00%  8.95% 2/12/2027  984,694   982,058   981,001 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Incremental Term Loan (7/21) Loan  1M USD SOFR+ 3.50%  0.50%  8.95% 2/12/2027  980,000   980,000   974,688 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 3.50%  0.50%  8.83% 2/12/2027  493,750   493,003   492,308 
ASTRO ONE ACQUISITION CORPORATION Consumer goods: Durable Term Loan Loan 3M USD LIBOR+ 5.50%  0.75%  10.66% 9/15/2028  2,955,000   2,933,548   1,894,155 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan 3M USD LIBOR+ 3.25%  0.00%  8.79% 12/18/2026  2,949,731   2,942,970   2,864,927 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B10 Loan  1M USD SOFR+ 4.00%  0.00%  9.43% 8/19/2028  1,985,000   1,898,493   1,908,359 
ATHENAHEALTH GROUP INC. Healthcare & Pharmaceuticals Term Loan B (2/22) Loan  1M USD SOFR+ 3.50%  0.50%  8.82% 2/15/2029  1,323,857   1,319,269   1,306,753 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		   SOFR/
LIBOR
Floor		   Current
Rate
(All In)		  Maturity
Date		   Principal/
Number
of Shares		  Cost  Fair
Value		 
CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing USD Term Loan Loan  1M USD LIBOR+ 3.50%  0.50%  8.65% 5/17/2028  1,974,924  1,890,618  1,885,223 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan  1M USD SOFR+ 2.50%  0.00%  7.77% 2/2/2028  4,900,000  4,898,551  4,829,587 
Clarios Global LP Automotive Incremental Term Loan (04/23) Loan  1M USD SOFR+ 3.75%  0.00%  8.90% 5/5/2030  1,200,000  1,194,004  1,187,004 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B-1 (11/21) Loan  1M USD SOFR+ 4.50%  0.50%  9.67% 8/9/2026  3,431,275  3,414,261  3,002,366 
CLYDESDALE ACQUISITION HOLDINGS, INC. Containers, Packaging & Glass Term Loan B Loan  1M USD SOFR+ 4.18%  0.50%  9.43% 4/13/2029  1,488,750  1,456,321  1,412,824 
Cole Haan Consumer goods: Non-durable Term Loan B Loan  3M USD LIBOR+ 5.50%  0.00%  10.66% 2/7/2025  862,500  859,791  831,234 
Columbus McKinnon Corporation Capital Equipment Term Loan (4/21) Loan  1M USD SOFR+ 2.75%  0.50%  7.92% 5/14/2028  439,667  438,942  438,018 
Conduent, Inc. Services: Business Term Loan B Loan  1M USD LIBOR+ 4.25%  0.50%  9.40% 10/16/2028  2,783,470  2,714,717  2,660,997 
Connect Finco SARL Telecommunications Term Loan (1/21) Loan  1M USD LIBOR+ 3.50%  1.00%  8.66% 12/11/2026  2,910,000  2,815,214  2,886,371 
Consolidated Communications, Inc. Telecommunications Term Loan B Loan  1M USD SOFR+ 3.50%  0.75%  8.77% 10/2/2027  2,714,005  2,528,047  2,327,259 
CORAL-US CO-BORROWER LLC Telecommunications Term Loan B-5 Loan  1M USD LIBOR+ 2.25%  0.00%  7.36% 1/31/2028  4,000,000  3,989,586  3,824,280 
Corelogic, Inc. Services: Business Term Loan (4/21) Loan  1M USD LIBOR+ 3.50%  0.50%  8.69% 6/2/2028  2,462,500  2,453,657  2,196,402 
Cortes NP Acquisition Corp (Vertiv) Capital Equipment Term Loan 2/21 Loan  1M USD LIBOR+ 2.75%  0.00%  7.81% 3/2/2027  1,955,000  1,955,000  1,922,410 
Creative Artists Agency, LLC Media: Diversified & Production Term Loan B (02/23) Loan  1M USD SOFR+ 3.50%  0.00%  8.65% 11/27/2028  1,600,000  1,588,739  1,576,000 
CROCS INC Consumer goods: Durable Term Loan Loan  1M USD SOFR+ 3.50%  0.50%  8.75% 2/20/2029  1,920,000  1,852,365  1,915,469 
Cross Financial Corp Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  1M USD LIBOR+ 4.00%  0.75%  9.19% 9/15/2027  491,250  491,009  486,338 
Crown Subsea Communications Holding, Inc. Construction & Building Term Loan (4/21) Loan  1M USD SOFR+ 5.00%  0.75%  10.11% 4/27/2027  3,404,110  3,380,055  3,375,379 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan  1M USD LIBOR+ 2.50%  0.00%  7.61% 4/15/2027  483,750  483,750  406,611 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan 12/22 Loan  1M USD SOFR+ 4.50%  0.00%  9.56% 4/15/2027  2,394,032  2,384,472  2,110,339 
CTC Holdings, LP Banking, Finance, Insurance & Real Estate Term Loan B Loan  6M USD SOFR+ 5.00%  0.50%  10.34% 2/15/2029  2,227,500  2,178,143  2,149,538 
CTS Midco, LLC High Tech Industries Term Loan B Loan  3M USD SOFR+ 6.00%  1.00%  11.31% 11/2/2027  1,950,227  1,910,738  1,711,325 
CAPSTONE BORROWER INC Services: Business Cvent 5/23 TLB Loan  1M USD SOFR+ 3.75%  0.00%  8.32% 6/17/2030  1,000,000  985,000  967,500 
Daseke Inc Transportation: Cargo Term Loan 2/21 Loan  1M USD SOFR+ 4.00%  0.75%  9.27% 3/5/2028  1,282,500  1,278,086  1,250,438 
Dave & Buster’s Inc. Hotel, Gaming & Leisure Term Loan B (04/22) Loan  1M USD SOFR+ 5.00%  0.50%  10.31% 6/29/2029  992,500  947,618  991,885 
DCert Buyer, Inc. High Tech Industries Term Loan Loan  3M USD SOFR+ 4.00%  0.00%  9.26% 10/16/2026  1,465,995  1,465,995  1,430,357 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B (11/22) Loan  1M USD SOFR+ 3.50%  0.50%  8.75% 11/16/2029  5,386,500  5,275,790  5,250,168 
Delta 2 Lux Sarl Hotel, Gaming & Leisure Term Loan B Loan  1M USD SOFR+ 3.00%  0.50%  8.15% 1/15/2030  1,000,000  990,725  999,000 
DexKo Global, Inc. (Dragon Merger) Automotive Term Loan (9/21) Loan  3M USD LIBOR+ 3.75%  0.50%  8.91% 10/4/2028  990,000  986,887  934,204 
DG Investment Intermediate Holdings 2, Inc. Aerospace & Defense Incremental Term Loan (3/22) Loan  1M USD SOFR+ 4.75%  0.75%  9.90% 3/31/2028  497,500  479,088  486,620 
Diamond Sports Group, LLC (b) Media: Broadcasting & Subscription 1st Priority Term Loan Loan  6M USD SOFR+ 8.00%  1.00%  13.06% 5/25/2026  342,343  334,579  257,329 
Diamond Sports Group, LLC (b) Media: Broadcasting & Subscription Second Lien Term Loan Loan  1M USD SOFR+ 5.35%  0.00%  10.50% 8/24/2026  3,374,880  3,041,095  133,578 
DIRECTV FINANCING, LLC Media: Broadcasting & Subscription Term Loan Loan  1M USD LIBOR+ 5.00%  0.75%  10.15% 8/2/2027  3,460,000  3,435,127  3,277,277 
DISCOVERY PURCHASER CORPORATION Chemicals, Plastics, & Rubber Term Loan Loan  3M USD SOFR+ 4.38%  0.50%  9.28% 10/4/2029  1,496,250  1,385,148  1,408,585 
Dispatch Acquisition Holdings, LLC Environmental Industries Term Loan B (3/21) Loan  3M USD SOFR+ 4.25%  0.75%  9.30% 3/25/2028  491,250  487,797  432,300 
DOMTAR CORPORATION Forest Products & Paper Term Loan 9/21 Loan  1M USD LIBOR+ 5.50%  0.75%  10.61% 11/30/2028  1,293,594  1,257,755  1,261,254 
DOTDASH MEREDITH, INC. Media: Advertising, Printing & Publishing Term Loan B Loan  1M USD SOFR+ 4.00%  0.50%  9.12% 11/30/2028  1,989,899  1,804,951  1,830,707 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
Avison Young (Canada) Inc Services: Business Term Loan Loan  3M USD SOFR+ 6.50%  0.00%  12.00% 1/31/2026  2,353,325   2,350,577   940,153 
Avison Young (Canada) Inc Services: Business Term Loan (08/22) Loan  3M USD SOFR+ 7.00%  0.00%  12.63% 1/31/2026  744,375   711,038   310,777 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 (7/21) Loan  1M USD SOFR+ 2.25%  0.50%  7.66% 12/1/2027  487,500   484,331   486,891 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B6 Loan  1M USD SOFR+ 2.50%  0.00%  7.81% 6/8/2028  1,000,000   944,377   1,000,250 
Axalta Coating Systems US Holdings Chemicals, Plastics, & Rubber Term Loan B (08/23) Loan  1M USD SOFR+ 2.50%  0.50%  7.81% 12/20/2029  922,500   914,178   923,939 
AZURITY PHARMACEUTICALS, INC. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD SOFR+ 6.00%  0.75%  11.45% 9/20/2027  462,500   452,222   444,000 
B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan  1M USD SOFR+ 2.50%  0.00%  7.83% 10/10/2026  579,183   576,446   573,802 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan  1M USD SOFR+ 1.75%  0.00%  7.20% 11/19/2026  1,447,500   1,425,936   1,437,454 
BAKELITE UK INTERMEDIATE LTD. Chemicals, Plastics, & Rubber Term Loan Loan  3M USD SOFR+ 4.00%  0.50%  9.39% 5/29/2029  990,000   985,977   979,486 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 3.50%  0.50%  8.91% 10/14/2027  1,220,100   1,210,518   1,211,462 
Barnes Group Inc. Aerospace & Defense Term Loan B Loan  1M USD SOFR+ 3.00%  0.00%  8.41% 8/9/2030  250,000   248,125   250,208 
Bausch Health Companies Inc. Healthcare & Pharmaceuticals Term Loan B (1/22) Loan  1M USD SOFR+ 5.25%  0.50%  10.66% 2/1/2027  1,900,000   1,737,905   1,548,500 
Belfor Holdings Inc. Services: Consumer Term Loan Loan  1M USD SOFR+ 4.00%  0.00%  9.45% 4/6/2026  244,275   244,275   243,867 
Belfor Holdings Inc. Services: Consumer Term Loan B-2 (3/22) Loan  1M USD SOFR+ 4.25%  0.50%  9.58% 4/6/2026  1,987,348   1,964,323   1,989,832 
Belron Finance US LLC Automotive Term Loan B (3/21) Loan  3M USD SOFR+ 2.43%  0.50%  8.06% 4/13/2028  1,955,000   1,941,672   1,953,045 
Belron Finance US LLC Automotive Term Loan (04/23) Loan  3M USD SOFR+ 2.75%  0.50%  8.16% 4/17/2029  250,000   248,815   250,000 
Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Term Loan Loan  1M USD SOFR+ 3.25%  0.50%  8.67% 1/24/2029  1,980,000   1,979,219   1,873,575 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan (6/21) Loan  1M USD SOFR+ 2.75%  0.50%  8.20% 4/23/2026  1,457,685   1,451,300   1,428,531 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD SOFR+ 2.25%  0.00%  7.70% 4/23/2026  974,684   970,699   949,098 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		   SOFR/
LIBOR
Floor		   Current
Rate
(All In)		  Maturity
Date		   Principal/
Number
of Shares		  Cost  Fair
Value		 
DRI HOLDING INC. Media: Advertising, Printing & Publishing Term Loan (12/21) Loan  1M USD LIBOR+ 5.25%  0.50%  10.40% 12/15/2028  3,962,481  3,825,639  3,529,105 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan (2/21) Loan  1M USD LIBOR+ 3.75%  0.00%  8.90% 3/1/2028  6,370,000  6,335,329  6,188,837 
DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan  1M USD LIBOR+ 2.75%  0.00%  7.90% 8/21/2025  1,612,878  1,610,315  1,563,153 
DTZ U.S. Borrower, LLC Construction & Building Term Loan (01/23) Loan  1M USD SOFR+ 3.25%  0.00%  8.50% 1/31/2030  2,034,413  2,031,072  1,897,090 
EAB Global, Inc. Services: Business Term Loan (08/21) Loan  1M USD LIBOR+ 3.50%  0.50%  8.65% 8/16/2028  987,500  983,879  956,996 
Echo Global Logistics, Inc. Services: Business Term Loan Loan  1M USD LIBOR+ 3.50%  0.50%  8.65% 11/23/2028  1,980,000  1,976,735  1,874,822 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  1M USD LIBOR+ 3.75%  0.75%  8.90% 4/7/2028  2,182,992  2,177,326  2,091,459 
Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan  3M USD SOFR+ 4.25%  0.00%  9.61% 6/26/2025  1,883,409  1,883,409  1,744,036 
ELECTRON BIDCO INC. Healthcare & Pharmaceuticals Term Loan Loan  1M USD SOFR+ 3.00%  0.50%  8.27% 11/1/2028  495,000  493,182  483,709 
ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan  1M USD LIBOR+ 6.50%  0.00%  11.65% 12/14/2025  2,175,269  2,125,913  2,052,910 
Embecta Corp Healthcare & Pharmaceuticals Term Loan B Loan  6M USD SOFR+ 3.00%  0.50%  7.79% 3/30/2029  613,370  610,139  600,845 
Emerson Climate Technologies Inc Services: Business Term Loan B (04/23) Loan  1M USD SOFR+ 3.00%  0.00%  8.03% 5/4/2030  626,147  619,885  618,514 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan (3/21) Loan  Prime 6.00%  0.75%  14.25% 3/27/2028  2,335,285  2,329,571  1,764,612 
Endure Digital, Inc. High Tech Industries Term Loan B Loan  6M USD LIBOR+ 3.50%  0.75%  8.79% 2/10/2028  2,456,250  2,448,041  2,234,426 
Entain Holdings (Gibraltar) Limited Hotel, Gaming & Leisure Term Loan B (10/22) Loan  6M USD SOFR+ 3.50%  0.50%  8.44% 10/30/2029  997,500  985,601  995,425 
Envision Healthcare Corporation Healthcare & Pharmaceuticals Term Loan B (06/18) Loan  3M USD LIBOR+ 3.75%  0.00%  8.91% 10/10/2025  4,766,742  4,765,301  29,792 
EOS U.S. FINCO LLC Transportation: Cargo Term Loan Loan  3M USD SOFR+ 6.00%  0.50%  10.91% 10/6/2029  993,750  919,833  984,637 
Equiniti Group PLC Services: Business Term Loan B Loan  6M USD SOFR+ 4.50%  0.50%  9.54% 12/11/2028  987,500  979,612  985,031 
EyeCare Partners, LLC Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+ 3.75%  0.00%  8.90% 2/18/2027  1,943,111  1,943,111  1,505,911 
Finco I LLC Banking, Finance, Insurance & Real Estate Term Loan B (9/20) Loan  6M USD LIBOR+ 2.50%  0.00%  8.08% 6/27/2025  2,830,950  2,827,872  2,824,580 
First Brands Group, LLC Automotive 1st Lien Term Loan (3/21) Loan  6M USD SOFR+ 5.00%  1.00%  10.25% 3/30/2027  4,900,000  4,845,043  4,708,900 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan  3M USD LIBOR+ 2.50%  0.00%  7.66% 2/1/2027  5,132,522  5,121,640  4,877,487 
First Student Bidco Inc. Transportation: Consumer Term Loan B Loan  3M USD LIBOR+ 3.00%  0.50%  8.14% 7/21/2028  721,243  717,314  669,054 
First Student Bidco Inc. Transportation: Consumer Term Loan C Loan  3M USD LIBOR+ 3.00%  0.50%  8.14% 7/21/2028  269,608  268,131  250,099 
Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan  3M USD SOFR+ 3.25%  1.00%  8.45% 4/18/2025  1,330,058  1,327,288  1,268,729 
Flutter Financing B.V. Hotel, Gaming & Leisure Term Loan Loan  3M USD LIBOR+ 2.25%  0.00%  7.41% 7/21/2026  1,970,000  1,967,537  1,960,367 
Flutter Financing B.V. Hotel, Gaming & Leisure Third Amendment 2028-B Term Loan Loan  3M USD SOFR+ 3.25%  0.50%  8.41% 7/21/2028  746,250  731,094  745,317 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD SOFR+ 3.25%  0.50%  8.40% 6/30/2028  1,483,571  1,467,480  1,446,481 
Franchise Group, Inc. Services: Consumer First Out Term Loan Loan  3M USD SOFR+ 4.75%  0.75%  9.97% 3/10/2026  799,104  794,431  749,160 
Franchise Group, Inc. Services: Consumer Term Loan B Loan  3M USD SOFR+ 4.75%  0.75%  10.09% 3/10/2026  3,000,000  2,863,177  2,801,250 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 2.25%  0.00%  7.50% 8/1/2025  4,297,478  4,285,561  4,254,503 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan  3M USD LIBOR+ 2.25%  0.00%  7.41% 1/29/2027  1,945,000  1,943,129  1,897,989 
Garrett LX III S.a r.l. Automotive Dollar Term Loan Loan  3M USD SOFR+ 3.25%  0.50%  8.66% 4/30/2028  1,477,500  1,472,325  1,381,463 
Gates Global LLC Automotive Term Loan (11/22) Loan  1M USD SOFR+ 3.50%  0.50%  8.65% 11/15/2029  248,750  241,726  247,539 
Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan  1M USD SOFR+ 3.00%  0.50%  8.15% 12/31/2027  2,263,630  2,251,094  2,251,904 


Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		   SOFR/
LIBOR
Floor		   Current
Rate
(All In)		  Maturity
Date		   Principal/
Number
of Shares		  Cost  Fair
Value		 
Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan  3M USD SOFR+ 2.00%  0.00%  7.00% 12/30/2026  1,455,000  1,451,280  1,447,725 
GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD SOFR+ 2.50%  0.00%  7.75% 8/27/2025  3,062,839  2,759,432  2,893,097 
Global Tel*Link Corporation Telecommunications Term Loan B Loan  1M USD SOFR+ 4.25%  0.00%  9.50% 11/29/2025  4,884,879  4,752,840  4,330,738 
Go Daddy Operating Company, LLC High Tech Industries Term Loan 2/21 Loan  1M USD LIBOR+ 2.00%  0.00%  7.15% 8/10/2027  954,774  954,774  950,601 
GOLDEN WEST PACKAGING GROUP LLC Forest Products & Paper Term Loan (11/21) Loan  1M USD LIBOR+ 5.25%  0.75%  10.40% 12/1/2027  1,915,517  1,900,897  1,838,897 
Graham Packaging Co Inc Containers, Packaging & Glass Term Loan (2/21) Loan  1M USD SOFR+ 3.00%  0.75%  8.27% 8/7/2027  948,542  944,160  923,510 
Great Outdoors Group, LLC Retail Term Loan B2 Loan  1M USD LIBOR+ 3.75%  0.75%  8.90% 3/6/2028  977,613  974,174  947,795 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  3M USD LIBOR+ 3.25%  0.00%  8.73% 4/12/2024  2,825,440  2,819,803  2,816,031 
Griffon Corporation Consumer goods: Durable Term Loan B Loan  3M USD SOFR+ 2.25%  0.50%  7.30% 1/24/2029  153,750  153,502  152,437 
Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Amendment 5 Term Loan Loan  1M USD LIBOR+ 2.50%  0.50%  7.65% 2/24/2028  2,829,586  2,827,907  2,809,779 
Groupe Solmax Inc. Environmental Industries Term Loan (6/21) Loan  3M USD LIBOR+ 4.75%  0.75%  9.91% 5/27/2028  1,989,873  1,633,954  1,782,190 
GYP HOLDINGS III CORP. Construction & Building 2023 Refinancing Term Loans Loan  1M USD SOFR+ 3.00%  0.00%  8.15% 4/25/2030  250,000  248,751  249,063 
Harbor Freight Tools USA, Inc. Retail Term Loan B (06/21) Loan  1M USD LIBOR+ 2.75%  0.50%  7.90% 10/19/2027  3,429,648  3,413,091  3,287,901 
Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan  1M USD LIBOR+ 3.75%  1.00%  8.90% 6/3/2024  208,209  208,209  205,440 
Hillman Group Inc. (The) (New) Consumer goods: Durable Term Loan B-1 (2/21) Loan  1M USD LIBOR+ 2.75%  0.50%  7.90% 7/14/2028  3,470,359  3,465,657  3,414,833 
Hillman Group Inc. (The) (New) (a) Consumer goods: Durable Delayed Draw Term Loan (2/21) Loan  1M USD LIBOR+ 2.75%  0.50%  7.90% 7/14/2028  66,498  66,498  53,012 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan  1M USD LIBOR+ 2.50%  0.00%  7.65% 8/18/2025  3,500,000  3,494,979  3,349,990 
Holley Purchaser, Inc Automotive Term Loan (11/21) Loan  3M USD LIBOR+ 3.75%  0.75%  8.91% 11/17/2028  2,311,709  2,304,423  1,995,768 
Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan  1M USD LIBOR+ 3.25%  0.75%  8.44% 11/12/2027  2,146,700  2,139,286  2,099,215 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan (3/21) Loan  1M USD SOFR+ 3.00%  0.00%  8.27% 3/17/2028  5,880,000  5,838,530  5,541,900 
Idera, Inc. High Tech Industries Term Loan (02/21) Loan  1M USD SOFR+ 3.75%  0.75%  8.88% 3/2/2028  4,798,869  4,791,394  4,595,925 
IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/21) Loan  1M USD LIBOR+ 3.50%  0.50%  8.53% 11/1/2028  1,975,000  1,967,711  1,930,563 
IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan  5/23 Loan  1M USD SOFR+ 4.25%  0.50%  9.40% 11/1/2028  500,000  487,500  490,625 
INDY US BIDCO, LLC Services: Business Term Loan (11/21) Loan  1M USD LIBOR+ 3.75%  0.00%  8.90% 3/6/2028  2,210,094  2,209,548  1,898,846 
INEOS 226 Ltd. Chemicals, Plastics, & Rubber Term Loan 3/23 Loan  1M USD SOFR+ 3.75%  0.00%  9.00% 3/13/2030  500,000  495,038  496,875 
Ineos US Finance LLC Chemicals, Plastics, & Rubber Term Loan C Loan  1M USD SOFR+ 3.50%  0.00%  8.75% 2/9/2030  1,000,000  990,100  990,630 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber Term Loan (1/21) Loan  1M USD SOFR+ 2.75%  0.50%  8.02% 1/29/2026  1,974,924  1,928,587  1,954,346 
Informatica Inc. High Tech Industries Term Loan B (10/21) Loan  1M USD LIBOR+ 2.75%  0.00%  7.94% 10/27/2028  495,000  494,703  490,773 
Ingram Micro Inc. Wholesale Term Loan Loan  3M USD LIBOR+ 3.50%  0.50%  8.66% 6/30/2028  1,473,750  1,462,645  1,414,800 
Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan  1M USD LIBOR+ 4.00%  1.00%  9.15% 5/1/2024  3,341,808  3,323,531  3,257,428 
Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan  1M USD LIBOR+ 3.25%  0.00%  8.40% 2/4/2027  485,000  483,785  474,543 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable Term Loan 4/21 Loan  3M USD LIBOR+ 5.00%  0.75%  10.48% 4/7/2028  3,942,576  3,927,059  463,253 
IRB Holding Corporation Beverage, Food & Tobacco Term Loan B (1/22) Loan  1M USD SOFR+ 3.00%  0.75%  8.25% 12/15/2027  498,740  494,029  483,220 
Isagenix International, LLC Beverage, Food & Tobacco Term Loan Loan  6M USD SOFR+ 4.50%  0.00%  9.59% 4/13/2028  1,182,282  721,726  1,004,939 
Jane Street Group Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan  1M USD SOFR+ 2.75%  0.00%  7.90% 1/31/2028  3,910,000  3,907,823  3,850,138 


Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		   SOFR/
LIBOR
Floor		   Current
Rate
(All In)		  Maturity
Date		   Principal/
Number
of Shares		  Cost  Fair
Value		 
Journey Personal Care Corp. Consumer goods: Non-durable Term Loan B Loan  3M USD LIBOR+ 4.25%  0.75%  9.41% 3/1/2028  982,500  978,960  825,300 
JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan  3M USD LIBOR+ 5.50%  1.00%  10.77% 11/15/2025  3,816,695  3,799,232  1,822,472 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Term Loan (1/21) (USD) Loan  6M USD SOFR+ 4.73%  0.50%  10.10% 2/12/2026  1,470,000  1,466,436  1,337,700 
Kodiak BP, LLC Construction & Building Term Loan Loan  3M USD SOFR+ 3.25%  0.75%  8.41% 3/13/2028  489,971  488,917  471,597 
Koppers Inc Chemicals, Plastics, & Rubber Term Loan Loan  1M USD SOFR+ 4.00%  0.50%  9.16% 4/9/2030  1,000,000  970,268  992,500 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan  1M USD LIBOR+ 3.50%  0.50%  8.63% 9/1/2027  490,047  482,060  458,194 
Lakeland Tours, LLC Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan  Fixed 0.00%  0.00%  13.25% 9/27/2027  1,056,778  459,661  686,906 
Lealand Finance Company B.V. Energy: Oil & Gas Exit Term Loan Loan  1M USD LIBOR+ 1.00%  0.00%  6.15% 6/30/2025  347,730  347,730  232,284 
LHS BORROWER, LLC Construction & Building Term Loan (02/22) Loan  1M USD SOFR+ 4.75%  0.50%  10.00% 2/16/2029  994,975  818,956  766,131 
Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan  1M USD SOFR+ 3.50%  1.00%  8.77% 2/28/2025  2,616,496  2,603,772  2,330,329 
Liquid Tech Solutions Holdings, LLC Services: Business Term Loan Loan  6M USD SOFR+ 4.75%  0.00%  9.71% 3/17/2028  982,500  979,970  957,938 
LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan  1M USD LIBOR+ 4.75%  0.00%  9.90% 8/31/2027  3,910,000  3,860,601  2,364,651 
LOYALTY VENTURES INC. (b) Services: Business Term Loan B Loan  Prime 5.50%  0.50%  13.75% 11/3/2027  3,089,630  3,075,114  290,950 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan  1M USD SOFR+ 1.75%  0.00%  6.84% 11/11/2026  1,204,743  1,203,544  1,187,672 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD SOFR+ 3.50%  0.50%  8.77% 10/16/2028  247,500  246,627  239,147 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan (01/23) Loan  1M USD SOFR+ 4.25%  0.50%  9.50% 10/14/2028  500,000  487,004  489,585 
LSF11 TRINITY BIDCO INC Aerospace & Defense Term Loan Loan  1M USD SOFR+ 4.50%  0.00%  9.50% 4/25/2030  1,000,000  985,000  982,500 
LSF9 Atlantis Holdings, LLC (A Wireless) Retail Term Loan B Loan  3M USD SOFR+ 7.25%  0.75%  12.15% 3/29/2029  2,812,500  2,730,109  2,759,063 
MAGNITE, INC. Services: Business Term Loan Loan  6M USD LIBOR+ 5.00%  0.75%  10.24% 4/28/2028  2,957,424  2,895,802  2,903,215 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan  1M USD LIBOR+ 1.75%  0.00%  6.90% 8/29/2025  1,317,074  1,317,074  1,300,202 
Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan  3M USD LIBOR+ 1.75%  0.00%  6.71% 2/15/2027  250,000  249,705  246,563 
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan B (02/23) Loan  1M USD SOFR+ 5.00%  0.00%  10.25% 2/27/2028  3,450,000  3,351,865  3,286,125 
McGraw-Hill Education, Inc. Media: Advertising, Printing & Publishing Term Loan (07/21) Loan  1M USD LIBOR+ 4.75%  0.50%  9.90% 7/28/2028  1,970,000  1,953,850  1,845,240 
MedAssets Software Inter Hldg, Inc. High Tech Industries Term Loan (11/21) (USD) Loan  1M USD LIBOR+ 4.00%  0.50%  9.15% 12/18/2028  495,000  492,319  413,637 
Mermaid Bidco Inc. High Tech Industries Term Loan B2 Loan  1M USD SOFR+ 4.50%  0.75%  9.54% 12/22/2027  1,981,272  1,959,063  1,911,927 
Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan  3M USD SOFR+ 2.50%  0.00%  7.66% 3/1/2026  2,970,367  2,961,160  2,959,852 
Michaels Companies Inc Retail Term Loan B (Magic Mergeco) Loan  3M USD LIBOR+ 4.25%  0.75%  9.41% 4/8/2028  2,461,187  2,446,742  2,158,166 
Momentive Performance Materials Inc. Chemicals, Plastics, & Rubber Term Loan (03/23) Loan  1M USD SOFR+ 4.50%  0.00%  9.65% 3/28/2028  500,000  480,430  489,690 
Moneygram International, Inc. Services: Business MoneyGram Payment 5/23 TL Loan  1M USD SOFR+ 5.50%  0.50%  10.55% 5/31/2030  2,000,000  1,660,000  1,660,000 
MPH Acquisition Holdings LLC (Multiplan) Services: Business Term Loan B (08/21) Loan  3M USD LIBOR+ 4.25%  0.50%  9.73% 9/1/2028  2,984,848  2,728,880  2,501,064 
NAB Holdings, LLC (North American Bancard) Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan  3M USD SOFR+ 3.00%  0.50%  8.05% 11/23/2028  2,962,500  2,957,096  2,901,650 
Napa Management Services Corp Healthcare & Pharmaceuticals Term Loan B (02/22) Loan  1M USD SOFR+ 5.25%  0.75%  10.49% 2/22/2029  2,992,443  2,417,282  2,179,995 
Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+ 3.50%  0.00%  8.69% 11/14/2025  3,364,175  3,348,633  3,305,301 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan 2/21 Loan  3M USD LIBOR+ 3.75%  0.75%  8.48% 3/2/2028  2,729,081  2,721,430  2,027,025 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C 2/21 Loan  3M USD SOFR+ 3.75%  0.75%  8.75% 3/2/2028  87,464  87,163  64,964 
NEW ERA CAP, LLC Consumer goods: Durable Term Loan (01/22) Loan  1M USD LIBOR+ 6.00%  0.75%  11.11% 7/13/2027  3,581,045  3,580,533  3,473,614 


Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		   SOFR/
LIBOR
Floor		   Current
Rate
(All In)		  Maturity
Date		   Principal/
Number
of Shares		  Cost  Fair
Value		 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Term Loan Loan  1M USD LIBOR+ 2.50%  0.00%  7.65% 9/18/2026  657,625  653,083  649,760 
Next Level Apparel, Inc. Retail Term Loan Loan  3M USD LIBOR+ 7.50%  1.00%  12.33% 8/9/2024  2,909,971  2,834,608  2,517,125 
NortonLifeLock Inc. High Tech Industries Term Loan B Loan  1M USD SOFR+ 2.00%  0.50%  7.25% 9/12/2029  1,333,648  1,328,212  1,310,723 
Novae LLC Automotive Term Loan B Loan  6M USD SOFR+ 5.00%  0.75%  10.34% 12/22/2028  1,980,000  1,967,827  1,679,693 
Nuvei Technologies Corp. High Tech Industries US Term Loan Loan  1M USD SOFR+ 2.50%  0.50%  7.77% 9/29/2025  2,210,625  2,208,388  2,202,335 
Olaplex, Inc. Consumer goods: Non-durable Term Loan (2/22) Loan  1M USD SOFR+ 3.50%  0.50%  8.74% 2/23/2029  2,486,222  2,384,953  2,221,016 
Open Text Corporation High Tech Industries Term Loan B Loan  1M USD SOFR+ 3.50%  0.50%  8.75% 1/31/2030  1,496,250  1,452,211  1,492,509 
Organon & Co. Healthcare & Pharmaceuticals Term Loan USD Loan  3M USD LIBOR+ 3.00%  0.50%  8.00% 6/2/2028  2,118,750  2,111,232  2,107,097 
Oxbow Carbon, LLC Metals & Mining Term Loan B (04/23) Loan  1M USD SOFR+ 4.00%  0.50%  9.16% 5/2/2030  500,000  490,039  491,250 
Pacific Gas & Electric Utilities: Electric Term Loan Loan  1M USD LIBOR+ 3.00%  0.50%  8.19% 6/18/2025  1,461,187  1,457,828  1,445,962 
PACTIV EVERGREEN GROUP HOLDINGS INC. Containers, Packaging & Glass Term Loan B Loan  1M USD SOFR+ 3.25%  0.50%  8.52% 9/20/2028  985,000  981,418  962,611 
Padagis LLC Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+ 4.75%  0.50%  9.97% 7/6/2028  941,176  934,000  855,294 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Term Loan 1/21 Loan  1M USD LIBOR+ 4.25%  0.50%  9.40% 1/7/2028  491,250  488,829  466,894 
PAR PETROLEUM LLC Energy: Oil & Gas Term Loan 2/23 Loan  3M USD SOFR+ 4.25%  0.50%  9.61% 2/27/2030  1,500,000  1,477,916  1,459,215 
PATAGONIA HOLDCO LLC Telecommunications Term Loan B Loan  3M USD SOFR+ 5.75%  0.50%  10.79% 8/1/2029  1,990,000  1,658,903  1,592,000 
Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan  1M USD LIBOR+ 3.75%  0.00%  8.90% 3/30/2027  485,268  478,405  407,324 
PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan  1M USD LIBOR+ 2.50%  0.00%  7.65% 5/29/2026  809,038  807,206  804,993 
PEARLS (Netherlands) Bidco B.V. Chemicals, Plastics, & Rubber USD Term Loan (02/22) Loan  3M USD SOFR+ 3.75%  0.50%  8.80% 2/28/2029  990,000  988,398  969,378 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC Healthcare & Pharmaceuticals Term Loan (12/22) Loan  1M USD SOFR+ 3.25%  0.50%  8.52% 12/29/2028  1,289,605  1,284,558  1,234,255 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (12/21) Loan  1M USD SOFR+ 3.25%  0.50%  8.52% 12/29/2028  166,606  166,606  158,185 
Penn National Gaming, Inc Hotel, Gaming & Leisure Term Loan B Loan  1M USD SOFR+ 2.75%  0.50%  8.00% 5/3/2029  992,500  988,325  982,823 
Peraton Corp. Aerospace & Defense Term Loan B Loan  1M USD SOFR+ 3.75%  0.75%  9.00% 2/1/2028  5,292,824  5,277,913  5,030,088 
PHYSICIAN PARTNERS, LLC Healthcare & Pharmaceuticals Term Loan Loan  3M USD SOFR+ 4.00%  0.50%  9.05% 12/23/2028  2,480,000  2,438,482  2,320,362 
Pike Corporation Construction & Building Term Loan (8/22) Loan  1M USD SOFR+ 3.50%  0.00%  8.65% 1/21/2028  497,500  486,614  494,236 
Pitney Bowes Inc Services: Business Term Loan B Loan  1M USD SOFR+ 4.00%  0.00%  9.27% 3/17/2028  3,929,899  3,905,884  3,615,507 
Plastipak Holdings Inc. Containers, Packaging & Glass Term Loan B (11/21) Loan  1M USD LIBOR+ 2.50%  0.50%  7.69% 12/1/2028  1,916,176  1,908,914  1,893,029 
Playtika Holding Corp. High Tech Industries Term Loan B (3/21) Loan  1M USD LIBOR+ 2.75%  0.00%  7.90% 3/13/2028  4,410,000  4,403,277  4,319,330 
PMHC II, INC. Chemicals, Plastics, & Rubber Term Loan (02/22) Loan  3M USD SOFR+ 4.25%  0.50%  9.30% 4/21/2029  1,990,000  1,981,777  1,711,898 
PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan  1M USD LIBOR+ 3.00%  0.75%  8.19% 12/29/2027  490,000  488,391  479,588 
Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan  1M USD LIBOR+ 4.75%  0.75%  9.90% 2/12/2028  5,390,000  5,348,460  4,851,000 
Pre-Paid Legal Services, Inc. Services: Consumer Term Loan (12/21) Loan  1M USD LIBOR+ 3.75%  0.50%  8.90% 12/15/2028  2,970,000  2,949,492  2,870,505 
Presidio, Inc. Services: Business Term Loan B (1/20) Loan  3M USD SOFR+ 3.50%  0.00%  8.65% 1/22/2027  486,250  485,838  480,780 
Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan  1M USD LIBOR+ 2.75%  0.75%  7.84% 9/23/2026  3,511,510  3,511,510  3,485,911 
PRIORITY HOLDINGS, LLC Services: Consumer Term Loan Loan  3M USD LIBOR+ 5.75%  1.00%  11.23% 4/27/2027  2,937,943  2,916,925  2,901,219 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber Term Loan (2/21) Loan  3M USD SOFR+ 2.50%  0.00%  8.00% 3/4/2028  977,500   975,993   962,026 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan  1M USD SOFR+ 2.00%  0.00%  7.43% 5/24/2027  1,447,549   1,442,454   1,436,330 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan  12/22 Loan  1M USD SOFR+ 3.50%  0.50%  8.93% 12/12/2029  496,250   484,717   496,354 
Boxer Parent Company, Inc. High Tech Industries Term Loan (2/21) Loan  1M USD SOFR+ 3.75%  0.00%  9.20% 10/2/2025  513,768   513,768   513,352 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Term Loan B-3 Loan  1M USD SOFR+ 3.50%  0.00%  8.95% 3/5/2026  977,500   977,500   972,309 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan  1M USD SOFR+ 3.00%  0.00%  8.45% 1/22/2027  2,933,625   2,930,258   2,905,961 
Brookfield WEC Holdings Inc. Energy: Electricity Term Loan (1/21) Loan  1M USD SOFR+ 2.75%  0.50%  8.20% 8/1/2025  1,455,151   1,456,158   1,452,866 
BROWN GROUP HOLDING, LLC Aerospace & Defense Term Loan B-2 Loan  3M USD SOFR+ 3.75%  0.00%  9.12% 7/1/2029  496,250   485,413   495,476 
Buckeye Partners, L.P. Utilities: Oil & Gas Term Loan (1/21) Loan  1M USD SOFR+ 2.25%  0.00%  7.67% 11/1/2026  1,940,238   1,932,124   1,935,639 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan B Loan  1M USD SOFR+ 3.50%  0.50%  8.93% 3/31/2028  2,450,000   2,432,794   2,408,154 
Callaway Golf Company Retail Term Loan B Loan  1M USD SOFR+ 3.50%  0.00%  8.93% 3/9/2030  498,750   493,877   498,216 
Camping World, Inc. Retail Term Loan B (5/21) Loan  1M USD SOFR+ 2.50%  0.75%  7.95% 6/5/2028  2,474,684   2,273,213   2,334,097 
CAPSTONE BORROWER INC Services: Business Term Loan (06/23) Loan  3M USD SOFR+ 3.75%  0.00%  9.00% 6/15/2030  1,000,000   985,348   992,500 
CareerBuilder, LLC Services: Business Term Loan B3 Loan  3M USD SOFR+ 6.75%  0.00%  12.25% 7/31/2026  4,035,492   4,014,259   3,874,073 
Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan  1M USD SOFR+ 3.75%  0.00%  9.20% 1/27/2027  1,955,012   1,947,126   1,461,371 
CASTLELAKE AVIATION LLC Aerospace & Defense Term Loan B Loan  3M USD SOFR+ 2.75%  0.50%  8.00% 10/21/2027  995,000   988,133   993,398 
CBI BUYER, INC. Consumer goods: Durable Term Loan Loan  1M USD SOFR+ 3.25%  0.50%  8.70% 1/6/2028  2,954,811   2,812,662   1,591,904 
CBL & Associates Limited Partnership Retail Term Loan 11/21 Loan  1M USD SOFR+ 2.75%  1.00%  8.18% 11/1/2025  2,481,505   2,122,937   2,127,891 
CCC Intelligent Solutions Inc. Services: Business Term Loan B Loan  1M USD SOFR+ 2.25%  0.50%  7.70% 9/16/2028  246,250   245,834   245,634 
CCI Buyer, Inc Telecommunications Term Loan Loan  3M USD SOFR+ 4.00%  0.75%  9.24% 12/17/2027  244,375   242,754   241,523 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD SOFR+ 3.75%  0.75%  9.20% 3/5/2028  977,500   974,107   936,768 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan Loan  3M USD SOFR+ 4.25%  0.50%  9.49% 3/5/2028  995,000   950,326   950,225 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan  3M USD SOFR+ 5.50%  0.00%  11.18% 9/25/2025  2,387,500   2,379,509   1,788,381 
CDK GLOBAL, INC. High Tech Industries Term Loan B Loan  3M USD SOFR+ 4.25%  0.50%  9.49% 7/6/2029  995,000   968,319   995,239 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		   SOFR/
LIBOR
Floor		   Current
Rate
(All In)		  Maturity
Date		   Principal/
Number
of Shares		  Cost  Fair
Value		 
PriSo Acquisition Corporation Construction & Building Term Loan (01/21) Loan  6M USD LIBOR+ 3.25%  0.75%  8.52% 12/28/2027  489,994  488,306  458,267 
Project Leopard Holdings, Inc. (NEW) High Tech Industries Term Loan B (06/22) Loan  1M USD SOFR+ 5.25%  0.50%  10.50% 7/20/2029  997,500  933,607  878,428 
Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan  3M USD SOFR+ 3.00%  1.00%  8.53% 1/29/2025  475,200  474,751  445,025 
PUG LLC Services: Consumer Term Loan B (02/20) Loan  1M USD LIBOR+ 3.50%  0.00%  8.65% 2/12/2027  478,888  477,642  407,654 
Quartz AcquireCo, LLC High Tech Industries Term Loan B Loan  1M USD SOFR+ 3.50%  0.00%  8.38% 4/13/2030  1,000,000  990,000  986,250 
QUEST BORROWER LIMITED High Tech Industries Term Loan (1/22) Loan  3M USD SOFR+ 4.25%  0.50%  9.45% 2/1/2029  1,985,000  1,968,797  1,676,868 
Rackspace Technology Global, Inc. High Tech Industries Term Loan (1/21) Loan  1M USD SOFR+ 2.75%  0.75%  7.91% 2/15/2028  2,967,254  2,880,291  1,166,872 
RAND PARENT LLC Transportation: Cargo Term Loan B Loan  3M USD SOFR+ 4.25%  0.00%  9.13% 3/16/2030  2,500,000  2,411,828  2,145,825 
RealPage, Inc. High Tech Industries Term Loan (04/21) Loan  1M USD LIBOR+ 3.00%  0.50%  8.15% 4/24/2028  985,000  983,590  945,905 
Rent-A-Center, Inc. Retail Term Loan B2 (9/21) Loan  3M USD LIBOR+ 3.25%  0.50%  8.56% 2/17/2028  1,875,243  1,837,657  1,847,114 
Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan  3M USD LIBOR+ 5.50%  1.00%  10.80% 12/20/2024  4,286,824  4,244,733  3,030,270 
Resideo Funding Inc. Services: Consumer Term Loan (1/21) Loan  1M USD LIBOR+ 2.25%  0.50%  7.36% 2/11/2028  1,470,000  1,468,339  1,459,901 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan  3M USD LIBOR+ 4.25%  1.00%  9.41% 4/30/2024  3,027,094  3,024,448  2,209,779 
Restoration Hardware, Inc. Retail Term Loan (9/21) Loan  1M USD LIBOR+ 2.50%  0.50%  7.65% 10/20/2028  3,453,672  3,448,420  3,076,842 
Reynolds Consumer Products LLC Containers, Packaging & Glass Term Loan Loan  1M USD SOFR+ 1.75%  0.00%  7.00% 1/29/2027  1,273,182  1,273,035  1,252,225 
Reynolds Group Holdings Inc. Containers, Packaging & Glass Term Loan B2 Loan  1M USD SOFR+ 3.25%  0.00%  8.52% 2/5/2026  2,844,322  2,836,000  2,821,226 
Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan  1M USD LIBOR+ 4.25%  0.00%  9.40% 11/28/2025  2,867,848  2,863,705  2,816,055 
Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan  1M USD SOFR+ 3.50%  1.00%  8.75% 6/2/2025  5,503,217  5,480,688  5,206,043 
RV Retailer LLC Automotive Term Loan Loan  3M USD SOFR+ 3.75%  0.75%  8.97% 2/8/2028  2,950,162  2,907,882  2,636,708 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 3.00%  0.75%  8.25% 9/1/2027  1,474,842  1,464,122  1,468,854 
S&S HOLDINGS LLC Services: Business Term Loan Loan  3M USD SOFR+ 5.00%  0.50%  10.09% 3/10/2028  2,452,462  2,405,746  2,202,630 
Sally Holdings LLC Retail Term Loan B Loan  1M USD SOFR+ 2.50%  0.00%  7.65% 2/27/2030  500,000  496,335  499,375 
Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan  1M USD LIBOR+ 3.00%  0.75%  8.15% 4/25/2025  925,056  913,402  923,566 
Schweitzer-Mauduit International, Inc. High Tech Industries Term Loan B Loan  1M USD LIBOR+ 3.75%  0.75%  8.94% 4/20/2028  2,947,500  2,936,027  2,814,863 
Scientific Games Holdings LP Hotel, Gaming & Leisure Term Loan B Loan  3M USD SOFR+ 3.50%  0.50%  8.42% 4/4/2029  497,500  496,575  479,520 
Sedgwick Claims Management Services, Inc. Services: Business Term Loan B 2/23 Loan  1M USD SOFR+ 3.75%  0.00%  8.90% 2/17/2028  1,000,000  990,500  970,940 
SETANTA AIRCRAFT LEASING DAC Aerospace & Defense Term Loan Loan  3M USD LIBOR+ 2.00%  0.00%  7.16% 11/2/2028  1,000,000  998,184  990,890 
Sitel Worldwide Corporation Services: Business USD Term Loan (7/21) Loan  1M USD LIBOR+ 3.75%  0.50%  8.91% 8/28/2028  1,970,000  1,962,979  1,881,961 
SiteOne Landscape Supply, LLC Services: Business Term Loan (3/21) Loan  3M USD SOFR+ 2.00%  0.50%  7.16% 3/18/2028  775,873  774,643  768,114 
SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan  3M USD LIBOR+ 2.50%  0.00%  7.77% 1/23/2025  483,750  483,750  478,913 
Smyrna Ready Mix Concrete, LLC Construction & Building Term Loan Loan  1M USD SOFR+ 4.25%  0.50%  9.50% 4/2/2029  997,487  990,334  990,834 
Solis IV B.V. Consumer goods: Durable Term Loan B-1 Loan  3M USD SOFR+ 3.50%  0.50%  8.67% 2/26/2029  1,989,975  1,729,773  1,821,822 
Sotheby’s Services: Business Term Loan (7/21) Loan  3M USD LIBOR+ 4.50%  0.50%  9.76% 1/15/2027  3,215,561  3,178,251  3,124,722 
Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber Term Loan (04/21) Loan  1M USD SOFR+ 3.25%  0.75%  8.38% 8/2/2028  1,975,000  1,967,877  1,941,425 
Specialty Pharma III Inc. Services: Business Term Loan Loan  1M USD LIBOR+ 4.25%  0.75%  9.27% 3/31/2028  1,970,000  1,956,027  1,841,950 
Spectrum Brands, Inc. Consumer goods: Durable Term Loan (2/21) Loan  1M USD LIBOR+ 2.00%  0.50%  7.16% 3/3/2028  490,000  489,296  488,878 
Spin Holdco, Inc. Services: Consumer Term Loan 3/21 Loan  3M USD LIBOR+ 4.00%  0.75%  8.99% 3/4/2028  2,940,000  2,927,996  2,348,325 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
Cengage Learning, Inc. Media: Advertising, Printing & Publishing Term Loan B (6/21) Loan  3M USD SOFR+ 4.75%  1.00%  10.32% 7/14/2026  2,947,500   2,929,703   2,936,771 
CENTURI GROUP, INC. Construction & Building Term Loan B Loan  1M USD SOFR+ 2.50%  0.50%  7.95% 8/27/2028  873,330   866,899   871,557 
CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan  1M USD SOFR+ 2.25%  0.00%  7.70% 3/15/2027  3,862,828   3,859,639   2,506,551 
Charlotte Buyer, Inc. Services: Business Term Loan B Loan  1M USD SOFR+ 5.25%  0.50%  10.56% 2/11/2028  1,492,500   1,403,429   1,469,739 
Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan B2 Loan  1M USD SOFR+ 3.50%  0.50%  8.83% 8/10/2028  2,399,716   2,358,116   2,360,721 
Churchill Downs Incorporated Hotel, Gaming & Leisure Term Loan B1 (3/21) Loan  1M USD SOFR+ 2.00%  0.00%  7.43% 3/17/2028  488,750   487,996   488,750 
CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing USD Term Loan Loan  1M USD SOFR+ 3.50%  0.50%  8.95% 5/17/2028  1,969,899   1,888,680   1,943,364 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Term Loan B (07/23) Loan  1M USD SOFR+ 2.50%  0.00%  7.95% 7/29/2030  4,887,500   4,886,389   4,863,063 
Clarios Global LP Automotive Incremental Term Loan (04/23) Loan  1M USD SOFR+ 3.75%  0.00%  9.08% 5/5/2030  1,200,000   1,194,106   1,196,628 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B-1 (11/21) Loan  1M USD SOFR+ 4.50%  0.50%  9.91% 8/9/2026  3,422,327   3,406,175   3,251,211 
CLYDESDALE ACQUISITION HOLDINGS, INC. Containers, Packaging & Glass Term Loan B Loan  1M USD SOFR+ 4.18%  0.50%  9.61% 4/13/2029  1,485,000   1,453,394   1,473,863 
Columbus McKinnon Corporation Capital Equipment Term Loan (4/21) Loan  3M USD SOFR+ 2.75%  0.50%  8.23% 5/14/2028  431,488   430,777   431,488 
Conduent, Inc. Services: Business Term Loan B Loan  1M USD SOFR+ 4.25%  0.50%  9.70% 10/16/2028  2,776,423   2,709,810   2,752,129 
Connect Finco SARL Telecommunications Term Loan (1/21) Loan  1M USD SOFR+ 3.50%  1.00%  8.83% 12/11/2026  2,902,500   2,813,077   2,892,980 
Consolidated Communications, Inc. Telecommunications Term Loan B Loan  1M USD SOFR+ 3.50%  0.75%  8.95% 10/2/2027  2,714,005   2,536,135   2,340,829 
CORAL-US CO-BORROWER LLC Telecommunications Term Loan B-5 Loan  1M USD SOFR+ 2.25%  0.00%  7.67% 1/31/2028  4,000,000   3,989,882   3,912,520 
Corelogic, Inc. Services: Business Term Loan (4/21) Loan  1M USD SOFR+ 3.50%  0.50%  8.95% 6/2/2028  2,456,250   2,447,592   2,285,197 
Cortes NP Acquisition Corp (Vertiv) Capital Equipment Term Loan 2/21 Loan  1M USD SOFR+ 2.75%  0.00%  8.18% 3/2/2027  1,950,000   1,950,000   1,948,109 
Creative Artists Agency, LLC Media: Diversified & Production Term Loan B (02/23) Loan  1M USD SOFR+ 3.50%  0.00%  8.83% 11/27/2028  1,596,000   1,584,990   1,594,005 
CROCS INC Consumer goods: Durable Term Loan B Loan  1M USD SOFR+ 3.00%  0.00%  8.43% 2/19/2029  1,710,000   1,651,545   1,714,087 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		   SOFR/
LIBOR
Floor		   Current
Rate
(All In)		  Maturity
Date		   Principal/
Number
of Shares		  Cost  Fair
Value		 
Spirit Aerosystems Inc. Aerospace & Defense Term Loan (11/22) Loan  3M USD SOFR+ 4.50%  0.50%  9.55% 1/14/2027  497,500  484,087  496,878 
SRAM, LLC Consumer goods: Durable Term Loan (05/21) Loan  1M USD LIBOR+ 2.75%  0.50%  7.90% 5/12/2028  2,690,909  2,687,985  2,639,620 
SS&C Technologies, Inc. Services: Business Term Loan B3 Loan  1M USD LIBOR+ 1.75%  0.00%  6.90% 4/16/2025  167,061  166,998  165,975 
SS&C Technologies, Inc. Services: Business Term Loan B4 Loan  1M USD LIBOR+ 1.75%  0.00%  6.90% 4/16/2025  148,146  148,093  147,184 
SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan  1M USD LIBOR+ 1.75%  0.00%  6.90% 4/16/2025  456,902  456,620  454,047 
STANDARD INDUSTRIES INC. Construction & Building Term Loan B Loan  1M USD SOFR+ 2.50%  0.50%  7.71% 9/22/2028  627,750  623,026  622,741 
Staples, Inc. Wholesale Term Loan (03/19) Loan  3M USD LIBOR+ 5.00%  0.00%  10.30% 4/16/2026  4,330,081  4,241,982  3,680,569 
Storable, Inc High Tech Industries Term Loan B Loan  1M USD SOFR+ 3.50%  0.50%  8.65% 4/17/2028  493,750  493,089  468,569 
Summit Materials, LLC Metals & Mining Term Loan B (12/22) Loan  6M USD SOFR+ 3.00%  0.00%  8.49% 12/13/2027  249,375  247,134  249,687 
Superannuation & Investments US LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+ 3.75%  0.50%  8.90% 12/1/2028  987,500  979,662  980,588 
Sweetwater Borrower, LLC Retail Term Loan (8/21) Loan  1M USD SOFR+ 4.25%  0.75%  9.52% 8/2/2028  2,000,000  1,909,130  1,880,000 
Syncsort Incorporated High Tech Industries Term Loan B (10/21) Loan  1M USD LIBOR+ 4.00%  0.75%  9.26% 4/24/2028  2,463,734  2,462,906  2,214,281 
Ta TT Buyer LLC Media: Broadcasting & Subscription Term Loan 3/22 Loan  3M USD SOFR+ 5.00%  0.50%  9.90% 4/2/2029  995,000  986,321  990,025 
Tenable Holdings, Inc. Services: Business Term Loan B (6/21) Loan  1M USD LIBOR+ 2.75%  0.50%  7.90% 7/7/2028  987,500  985,732  972,688 
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 5.25%  1.00%  10.50% 7/15/2025  4,371,891  4,324,578  4,336,391 
Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+ 4.00%  1.00%  9.02% 9/27/2024  1,895,000  1,894,422  1,806,181 
The Dun & Bradstreet Corporation Services: Business Term Loan Loan  1M USD LIBOR+ 3.25%  0.00%  8.41% 2/6/2026  960,424  959,854  953,739 
The Dun & Bradstreet Corporation Services: Business Term Loan B Loan  1M USD SOFR+ 3.25%  0.00%  8.39% 1/18/2029  247,500  246,002  244,778 
THE KNOT WORLDWIDE INC. Services: Consumer Term Loan (1/22) Loan  1M USD SOFR+ 4.50%  0.00%  9.75% 12/19/2025  4,833,272  4,829,687  4,809,106 
Thor Industries, Inc. Automotive USD Term Loan (3/21) Loan  1M USD SOFR+ 3.00%  0.00%  8.25% 2/1/2026  1,517,243  1,499,416  1,512,812 
Torrid LLC Wholesale Term Loan 5/21 Loan  1M USD SOFR+ 5.50%  0.75%  10.77% 6/14/2028  3,432,450  2,955,101  2,989,081 
TORY BURCH LLC Retail Term Loan Loan  1M USD LIBOR+ 3.50%  0.50%  8.65% 4/15/2028  2,325,838  2,171,836  2,168,844 
Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan  3M USD SOFR+ 3.50%  0.75%  8.81% 8/18/2027  488,750  484,129  340,698 
Trans Union LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 2.25%  0.50%  7.52% 12/1/2028  769,758  768,416  763,123 
Transdigm, Inc. Aerospace & Defense Term Loan H Loan  3M USD SOFR+ 3.25%  0.00%  8.15% 2/21/2027  1,988,386  1,985,682  1,978,445 
TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco Term Loan (03/21) Loan  3M USD LIBOR+ 3.50%  0.50%  8.66% 3/31/2028  1,473,752  1,468,609  1,394,376 
Tronox Finance LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+ 2.25%  0.00%  7.40% 3/10/2028  346,923  346,442  340,474 
TruGreen Limited Partnership Services: Consumer Term Loan Loan  1M USD SOFR+ 4.00%  0.75%  9.25% 10/29/2027  952,066  947,175  885,183 
Uber Technologies, Inc. Transportation: Consumer Term Loan 2/23 Loan  3M USD SOFR+ 2.75%  0.00%  7.66% 2/27/2030  498,750  497,503  493,638 
Ultra Clean Holdings, Inc. High Tech Industries Incremental Term Loan 3/21 Loan  1M USD LIBOR+ 3.75%  0.00%  8.90% 8/27/2025  782,230  780,229  781,252 
Unimin Corporation Metals & Mining Term Loan (12/20) Loan  3M USD LIBOR+ 4.00%  1.00%  9.22% 7/31/2026  496,815  477,782  482,884 
United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan  1M USD SOFR+ 3.25%  0.00%  8.52% 10/22/2025  1,289,967  1,256,282  1,285,878 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/21) Loan  1M USD LIBOR+ 3.25%  0.75%  8.40% 3/15/2026  2,440,439  2,436,083  2,352,314 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/22) Loan  3M USD SOFR+ 4.25%  0.50%  9.15% 6/25/2029  248,125  241,480  240,061 
Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan  1M USD SOFR+ 3.00%  0.00%  8.27% 1/20/2028  1,823,802  1,822,695  1,814,427 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
Cross Financial Corp Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  1M USD SOFR+ 4.00%  0.75%  9.45% 9/15/2027  490,000   489,764   490,000 
Crown Subsea Communications Holding, Inc. Construction & Building Term Loan (4/21) Loan  1M USD SOFR+ 5.00%  0.75%  10.43% 4/27/2027  3,404,110   3,380,765   3,407,309 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan 1M USD LIBOR+ 2.50%  0.00%  7.92% 4/15/2027  482,500   482,500   436,059 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan 12/22 Loan  1M USD SOFR+ 4.50%  0.00%  9.81% 4/15/2027  2,388,032   2,378,887   2,248,738 
CTC Holdings, LP Banking, Finance, Insurance & Real Estate Term Loan B Loan  6M USD SOFR+ 5.00%  0.50%  10.34% 2/15/2029  2,221,875   2,174,009   2,171,883 
CTS Midco, LLC High Tech Industries Term Loan B Loan  3M USD SOFR+ 6.00%  1.00%  11.63% 11/2/2027  1,945,824   1,908,257   1,719,622 
American Trailer World Corp Automotive Term Loan Loan  1M USD SOFR+ 3.75%  0.75%  9.18% 3/3/2028  1,357,439   1,355,226   1,280,404 
Daseke Inc Transportation: Cargo Term Loan 2/21 Loan  1M USD SOFR+ 4.00%  0.75%  9.45% 3/5/2028  1,278,750   1,274,454   1,257,970 
Dave & Buster’s Inc. Hotel, Gaming & Leisure Term Loan (6/23) Loan  1M USD SOFR+ 3.75%  0.50%  9.19% 6/29/2029  992,500   948,813   992,252 
DCert Buyer, Inc. High Tech Industries Term Loan Loan  1M USD SOFR+ 4.00%  0.00%  9.33% 10/16/2026  1,462,217   1,462,217   1,455,797 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B (11/22) Loan  1M USD SOFR+ 3.50%  0.50%  8.93% 11/16/2029  5,373,000   5,265,049   5,317,765 
Delta 2 Lux Sarl Hotel, Gaming & Leisure Term Loan B Loan  1M USD SOFR+ 3.00%  0.50%  8.33% 1/15/2030  1,000,000   990,871   1,002,500 
DexKo Global, Inc. (Dragon Merger) Automotive Term Loan (9/21) Loan  3M USD SOFR+ 3.75%  0.50%  9.25% 10/4/2028  987,500   984,405   955,288 
DG Investment Intermediate Holdings 2, Inc. Aerospace & Defense Incremental Term Loan (3/22) Loan  1M USD SOFR+ 4.75%  0.75%  10.08% 3/31/2028  496,250   478,520   491,908 
Diamond Sports Group, LLC (b) Media: Broadcasting & Subscription 1st Priority Term Loan Loan  1M USD SOFR+ 10.00%  1.00%  15.29% 5/25/2026  342,343   335,048   213,965 
Diamond Sports Group, LLC (b) Media: Broadcasting & Subscription Second Lien Term Loan Loan  1M USD SOFR+ 5.25%  0.00%  10.54% 8/24/2026  3,374,880   3,065,190   81,368 
DIRECTV FINANCING, LLC Media: Broadcasting & Subscription Term Loan Loan  1M USD SOFR+ 5.00%  0.75%  10.45% 8/2/2027  3,370,000   3,346,415   3,327,100 
DISCOVERY PURCHASER CORPORATION Chemicals, Plastics, & Rubber Term Loan Loan  3M USD SOFR+ 4.38%  0.50%  9.62% 10/4/2029  1,492,500   1,384,569   1,430,009 
Dispatch Acquisition Holdings, LLC Environmental Industries Term Loan B (3/21) Loan  3M USD SOFR+ 4.25%  0.75%  9.64% 3/25/2028  490,000   486,663   449,575 
DOMTAR CORPORATION Forest Products & Paper Term Loan 9/21 Loan  1M USD SOFR+ 5.50%  0.75%  10.93% 11/30/2028  1,277,052   1,242,613   1,273,859 
DOTDASH MEREDITH, INC. Media: Advertising, Printing & Publishing Term Loan B Loan  1M USD SOFR+ 4.00%  0.50%  9.42% 11/30/2028  1,984,848   1,806,146   1,907,936 
DRI HOLDING INC. Media: Advertising, Printing & Publishing Term Loan (12/21) Loan  1M USD SOFR+ 5.25%  0.50%  10.68% 12/15/2028  3,952,475   3,819,666   3,596,752 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan (2/21) Loan  1M USD SOFR+ 3.75%  0.00%  9.20% 3/1/2028  6,370,000   6,336,058   6,354,075 
DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan  1M USD SOFR+ 2.75%  0.00%  8.20% 8/21/2025  198,929   198,630   198,432 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		   SOFR/
LIBOR
Floor		   Current
Rate
(All In)		  Maturity
Date		   Principal/
Number
of Shares		  Cost  Fair
Value		 
Vaco Holdings, LLC Services: Business Term Loan (01/22) Loan  3M USD SOFR+ 5.00%  0.75%  10.05% 1/19/2029  2,336,296  2,271,898  2,122,127 
Vericast Corp. Media: Advertising, Printing & Publishing Term Loan Loan  1M USD SOFR+ 7.75%  1.00%  13.02% 6/15/2026  1,201,006  1,199,979  1,048,730 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan  3M USD LIBOR+ 4.00%  0.00%  9.48% 8/20/2025  1,364,459  1,361,447  1,188,103 
Vertex Aerospace Services Corp Aerospace & Defense Term Loan (10/21) Loan  1M USD LIBOR+ 3.75%  0.75%  8.90% 12/6/2028  990,000  986,356  980,724 
VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan (01/22) Loan  1M USD SOFR+ 3.00%  0.50%  8.20% 1/12/2029  3,069,879  3,064,185  2,983,554 
Viasat Inc Telecommunications Term Loan (2/22) Loan  1M USD SOFR+ 4.50%  0.50%  9.65% 3/2/2029  2,989,975  2,924,674  2,869,628 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (9/21) Loan  1M USD LIBOR+ 2.25%  0.00%  7.36% 9/28/2028  2,845,909  2,838,787  2,781,876 
Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan  1M USD LIBOR+ 1.75%  0.00%  6.90% 12/31/2025  894,474  894,376  886,737 
Vizient, Inc Healthcare & Pharmaceuticals Term Loan 4/22 Loan  1M USD SOFR+ 2.25%  0.50%  7.45% 5/16/2029  496,250  491,914  494,568 
VM Consolidated, Inc. Construction & Building Term Loan B (3/21) Loan  1M USD SOFR+ 3.25%  0.00%  8.52% 3/24/2028  2,120,393  2,118,781  2,115,092 
Vouvray US Finance LLC High Tech Industries Term Loan Loan  1M USD SOFR+ 6.00%  1.00%  11.15% 9/30/2025  470,000  470,000  454,335 
Walker & Dunlop, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (12/22) Loan  1M USD SOFR+ 3.00%  0.50%  8.25% 12/15/2028  500,000  490,617  495,000 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G Loan  1M USD LIBOR+ 2.13%  0.00%  7.28% 1/20/2028  1,250,000  1,249,879  1,237,675 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan Incremental (11/22) Loan  1M USD SOFR+ 3.00%  0.50%  7.98% 1/19/2028  500,000  491,037  498,595 
Watlow Electric Manufacturing Company High Tech Industries Term Loan B Loan  3M USD SOFR+ 3.75%  0.50%  9.06% 3/2/2028  2,450,000  2,442,192  2,378,680 
West Corporation Telecommunications Term Loan B-3 Loan  1M USD SOFR+ 4.00%  1.00%  9.40% 4/9/2027  1,189,119  1,173,823  1,058,982 
WEX Inc. Services: Business Term Loan B (3/21) Loan  1M USD SOFR+ 2.25%  0.00%  7.52% 3/31/2028  2,947,406  2,939,191  2,926,774 
WildBrain Ltd. Media: Diversified & Production Term Loan Loan  1M USD SOFR+ 4.25%  0.75%  9.52% 3/27/2028  1,960,000  1,931,339  1,891,400 
Wyndham Hotels & Resorts, Inc. Hotel, Gaming & Leisure Term Loan  5/23 Loan  1M USD SOFR+ 2.25%  0.00%  7.40% 5/10/2030  1,000,000  995,000  996,880 
Xperi Corporation High Tech Industries Term Loan Loan  1M USD LIBOR+ 3.50%  0.00%  8.65% 6/8/2028  2,310,717  2,304,550  2,281,833 
Zayo Group, LLC Telecommunications Term Loan 4/22 Loan  1M USD SOFR+ 4.25%  0.50%  9.40% 3/9/2027  990,000  969,668  775,635 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
DTZ U.S. Borrower, LLC Construction & Building Term Loan (01/23) Loan  1M USD SOFR+ 3.25%  0.50%  8.68% 1/31/2030  2,034,413   2,031,254   2,003,897 
DTZ U.S. Borrower, LLC Construction & Building Term Loan (08/23) Loan  1M USD SOFR+ 4.00%  0.50%  9.33% 1/31/2030  1,100,000   1,072,515   1,094,500 
EAB Global, Inc. Services: Business Term Loan (08/21) Loan  1M USD SOFR+ 3.50%  0.50%  8.95% 8/16/2028  985,000   981,442   974,126 
Echo Global Logistics, Inc. Services: Business Term Loan Loan  1M USD SOFR+ 3.50%  0.50%  8.93% 11/23/2028  1,975,000   1,971,801   1,920,688 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  1M USD SOFR+ 3.50%  0.75%  8.95% 4/7/2028  2,177,437   2,171,956   2,148,478 
Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan  3M USD SOFR+ 4.25%  0.00%  9.77% 6/26/2025  1,878,413   1,878,413   1,806,808 
ELECTRON BIDCO INC. Healthcare & Pharmaceuticals Term Loan Loan  1M USD SOFR+ 3.00%  0.50%  8.45% 11/1/2028  493,750   491,996   492,210 
ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan  1M USD SOFR+ 6.50%  0.00%  11.95% 12/14/2025  2,050,269   2,007,259   1,953,906 
Embecta Corp Healthcare & Pharmaceuticals Term Loan B Loan  6M USD SOFR+ 3.00%  0.50%  8.34% 3/30/2029  2,611,821   2,593,724   2,590,613 
Emerson Climate Technologies Inc Services: Business Term Loan B (04/23) Loan  1M USD SOFR+ 3.00%  0.00%  8.33% 5/31/2030  626,147   620,057   626,541 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan (3/21) Loan Prime 6.00%  0.75%  14.50% 3/27/2028  2,335,285   2,329,664   1,704,758 
Endure Digital, Inc. High Tech Industries Term Loan B Loan  6M USD LIBOR+ 3.50%  0.75%  8.79% 2/10/2028  2,450,000   2,442,065   2,333,625 
Entain Holdings (Gibraltar) Limited Hotel, Gaming & Leisure Term Loan B (10/22) Loan  6M USD SOFR+ 3.50%  0.50%  8.44% 10/30/2029  1,495,000   1,478,509   1,496,869 

Envision Healthcare Corporation (b)

 Healthcare & Pharmaceuticals Term Loan B (06/18) Loan  3M USD LIBOR+ 3.75%  0.00%  9.29% 10/10/2025  4,766,742   4,765,456   35,751 
EOS U.S. FINCO LLC Transportation: Cargo Term Loan Loan  3M USD SOFR+ 6.00%  0.50%  11.27% 10/6/2029  987,500   915,869   966,930 
Equiniti Group PLC Services: Business Term Loan B Loan  6M USD SOFR+ 4.50%  0.50%  10.09% 12/11/2028  985,000   977,565   986,231 
EyeCare Partners, LLC Healthcare & Pharmaceuticals Term Loan Loan  3M USD SOFR+ 3.75%  0.00%  9.25% 2/18/2027  1,938,142   1,938,142   1,524,213 
Finco I LLC Banking, Finance, Insurance & Real Estate Term Loan B (08/23) Loan  3M USD SOFR+ 3.00%  0.00%  8.37% 6/27/2029  2,830,950   2,827,777   2,829,761 
First Brands Group, LLC Automotive 1st Lien Term Loan (3/21) Loan  6M USD SOFR+ 5.00%  1.00%  10.88% 3/30/2027  4,887,500   4,835,242   4,814,188 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan 3M USD LIBOR+ 2.50%  0.00%  8.04% 2/1/2027  5,118,899   5,108,521   5,012,272 
First Student Bidco Inc. Transportation: Consumer Term Loan B Loan  3M USD SOFR+ 3.00%  0.50%  8.50% 7/21/2028  719,282   715,455   699,840 
First Student Bidco Inc. Transportation: Consumer Term Loan C Loan  3M USD SOFR+ 3.00%  0.50%  8.50% 7/21/2028  269,608   268,164   262,320 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		   SOFR/
LIBOR
Floor		   Current
Rate
(All In)		  Maturity
Date		   Principal/
Number
of Shares		  Cost  Fair
Value		 
ZEBRA BUYER (Allspring) LLC Banking, Finance, Insurance & Real Estate Term Loan 4/21 Loan  3M USD LIBOR+ 3.00%  0.50%  8.19% 11/1/2028  878,226  875,022  857,096 
Zekelman Industries, Inc. Metals & Mining Term Loan (01/20) Loan  3M USD LIBOR+ 2.00%  0.00%  7.02% 1/25/2027  959,611  959,611  946,416 
Zest Acquisition Corp. Healthcare & Pharmaceuticals Term Loan (1/23) Loan  1M USD SOFR+ 5.50%  0.00%  10.54% 2/8/2028  1,995,000  1,900,560  1,922,681 
Zodiac Pool Solutions Consumer goods: Durable Term Loan (1/22) Loan  1M USD SOFR+ 2.00%  0.50%  7.25% 1/29/2029  493,750  492,872  482,141 
                          $641,360,143 $591,378,372 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan  3M USD SOFR+ 3.25%  1.00%  8.77% 4/18/2025  1,330,058   1,327,569   1,313,433 
Flutter Entertainment PLC Hotel, Gaming & Leisure Term Loan Loan  3M USD SOFR+ 2.25%  0.00%  7.75% 7/21/2026  1,965,000   1,962,657   1,963,330 
Flutter Financing B.V. Hotel, Gaming & Leisure Third Amendment 2028-B Term Loan Loan  3M USD SOFR+ 3.25%  0.50%  8.75% 7/21/2028  744,375   729,794   744,330 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD SOFR+ 3.25%  0.50%  8.58% 6/30/2028  1,479,843   1,464,270   1,474,797 
Franchise Group, Inc. Services: Consumer First Out Term Loan Loan  3M USD SOFR+ 4.75%  0.75%  10.31% 3/10/2026  799,104   794,721   715,198 
Franchise Group, Inc. Services: Consumer Term Loan B Loan  3M USD SOFR+ 4.75%  0.75%  10.38% 3/10/2026  2,992,500   2,866,346   2,663,325 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 2.25%  0.00%  7.68% 8/1/2025  4,286,227   4,275,078   4,283,569 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan  1M USD SOFR+ 2.25%  0.00%  7.68% 1/29/2027  1,940,000   1,938,138   1,928,884 
Garrett LX III S.a r.l. Automotive Dollar Term Loan Loan  3M USD SOFR+ 3.25%  0.50%  8.88% 4/30/2028  1,473,750   1,468,712   1,436,287 
Gates Global LLC Automotive Term Loan (11/22) Loan  1M USD SOFR+ 3.50%  0.50%  8.83% 11/15/2029  248,125   241,277   248,177 
Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan  3M USD SOFR+ 3.00%  0.50%  8.63% 12/31/2027  2,237,147   2,225,126   2,233,791 
Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan  3M USD SOFR+ 2.00%  0.00%  7.34% 12/30/2026  1,451,250   1,447,636   1,450,989 
GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+ 2.50%  0.00%  2.96% 8/27/2025  3,046,594   2,779,212   3,029,472 
Global Tel*Link Corporation Telecommunications Term Loan B Loan  3M USD SOFR+ 4.25%  0.00%  9.77% 11/29/2025  4,872,123   4,751,788   4,573,706 
Go Daddy Operating Company, LLC High Tech Industries Term Loan 2/21 Loan  1M USD SOFR+ 2.00%  0.00%  7.45% 8/10/2027  952,319   952,319   951,843 
GOLDEN WEST PACKAGING GROUP LLC Forest Products & Paper Term Loan (11/21) Loan  1M USD SOFR+ 5.25%  0.75%  10.68% 12/1/2027  1,915,517   1,901,260   1,819,741 
Graham Packaging Co Inc Containers, Packaging & Glass Term Loan (2/21) Loan  1M USD SOFR+ 3.00%  0.75%  8.45% 8/7/2027  948,542   944,284   945,820 
Great Outdoors Group, LLC Retail Term Loan B2 Loan  1M USD SOFR+ 3.75%  0.75%  9.20% 3/6/2028  975,131   971,794   971,172 
Griffon Corporation Consumer goods: Durable Term Loan B Loan  3M USD SOFR+ 2.25%  0.50%  7.64% 1/24/2029  153,125   152,882   152,598 
Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Amendment 5 Term Loan Loan  1M USD SOFR+ 2.50%  0.50%  7.95% 2/24/2028  2,822,368   2,820,777   2,819,715 

 

  Number of Shares  Cost  Fair Value 
Cash and cash equivalents         
U.S. Bank Money Market (c)  13,354,715  $13,354,715  $13,354,715 
Total cash and cash equivalents  13,354,715  $13,354,715  $13,354,715 


Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
Groupe Solmax Inc. Environmental Industries Term Loan (6/21) Loan  3M USD SOFR+ 4.75%  0.75%  10.25% 5/27/2028  1,984,810   1,641,690   1,829,995 
GYP HOLDINGS III CORP. Construction & Building 2023 Refinancing Term Loans Loan  1M USD SOFR+ 3.00%  0.00%  8.33% 4/25/2030  250,000   248,767   250,470 
Harbor Freight Tools USA, Inc. Retail Term Loan B (06/21) Loan  1M USD SOFR+ 2.75%  0.50%  8.20% 10/19/2027  3,420,854   3,404,776   3,401,903 
Helix Gen Funding, LLc Energy: Electricity Term Loan Loan  3M USD SOFR+ 4.75%  1.00%  10.05% 12/31/2027  1,000,000   980,374   998,750 
Hillman Group Inc. (The) (New) Consumer goods: Durable Term Loan B-1 (2/21) Loan  1M USD SOFR+ 2.75%  0.50%  8.20% 7/14/2028  3,190,327   3,186,207   3,187,009 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan  1M USD SOFR+ 2.50%  0.00%  7.95% 8/18/2025  3,490,000   3,485,290   3,454,542 
Holley Purchaser, Inc Automotive Term Loan (11/21) Loan  1M USD SOFR+ 3.75%  0.75%  9.18% 11/17/2028  2,305,842   2,298,587   2,174,409 
Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan  1M USD LIBOR+ 3.25%  0.75%  8.75% 11/12/2027  2,141,210   2,134,001   2,125,965 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan (3/21) Loan  3M USD SOFR+ 3.00%  0.00%  8.63% 3/17/2028  5,865,000   5,825,024   5,777,025 
Hunter Douglas Inc Consumer goods: Durable Term Loan B-1 Loan  3M USD SOFR+ 3.50%  0.50%  8.89% 2/26/2029  1,984,962   1,733,435   1,926,664 
Idera, Inc. High Tech Industries Term Loan (02/21) Loan  3M USD SOFR+ 3.75%  0.75%  9.27% 3/2/2028  4,786,627   4,779,779   4,727,991 
IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/21) Loan  1M USD SOFR+ 3.50%  0.50%  8.95% 11/1/2028  1,970,000   1,962,846   1,939,229 
IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan  5/23 Loan  1M USD SOFR+ 4.25%  0.50%  9.67% 10/31/2028  500,000   487,852   498,125 
INDY US BIDCO, LLC Services: Business Term Loan (11/21) Loan  1M USD SOFR+ 3.75%  0.00%  9.08% 3/6/2028  2,204,484   2,203,734   2,105,283 
INEOS 226 Ltd. Chemicals, Plastics, & Rubber Term Loan 3/23 Loan  1M USD SOFR+ 3.75%  0.00%  9.18% 3/13/2030  500,000   495,106   496,875 
Ineos US Finance LLC Chemicals, Plastics, & Rubber Term Loan C Loan  1M USD SOFR+ 3.50%  0.00%  8.93% 2/9/2030  1,000,000   990,251   992,250 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber Term Loan (1/21) Loan  1M USD SOFR+ 2.75%  0.50%  8.20% 1/29/2026  1,969,899   1,927,342   1,955,125 
Informatica Inc. High Tech Industries Term Loan B (10/21) Loan  1M USD SOFR+ 2.75%  0.00%  8.20% 10/27/2028  493,750   493,463   492,210 
Ingram Micro Inc. Wholesale Term Loan Loan  3M USD LIBOR+ 3.50%  0.50%  9.04% 6/30/2028  1,095,000   1,086,920   1,092,602 
Inmar, Inc. Services: Business Term Loan (06/23) Loan  3M USD SOFR+ 5.50%  1.00%  10.71% 5/1/2026  3,350,000   3,238,692   3,253,688 
Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan  1M USD SOFR+ 3.25%  0.00%  8.70% 2/4/2027  483,750   482,592   482,391 
INSTANT BRANDS HOLDINGS INC. (b) Consumer goods: Durable Term Loan 4/21 Loan 6M USD LIBOR+ 5.00%  0.75%  10.63% 4/7/2028  3,942,576   3,927,628   768,802 


Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable PIK DIP Term Loan Loan  1M USD SOFR+ 3.00%  1.00%  8.45% 12/12/2023  1,557,178   1,429,865   1,526,034 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable DIP Term Loan (08/23) Loan  1M USD SOFR+ 3.00%  1.00%  8.45% 12/12/2023  318,840   305,445   303,657 
IRB Holding Corporation Beverage, Food & Tobacco Term Loan B (1/22) Loan  1M USD SOFR+ 3.00%  0.75%  8.43% 12/15/2027  497,481   492,915   494,421 
Isagenix International, LLC Beverage, Food & Tobacco Term Loan Loan  6M USD SOFR+ 2.50%  0.00%  2.50% 4/13/2028  1,206,711   758,822   1,043,805 
Jane Street Group Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan  1M USD SOFR+ 2.75%  0.00%  8.20% 1/31/2028  3,900,000   3,898,170   3,890,250 
Journey Personal Care Corp. Consumer goods: Non-durable Term Loan B Loan 6M USD LIBOR+ 4.25%  0.75%  9.98% 3/1/2028  980,000   976,744   903,070 
JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan  3M USD SOFR+ 5.50%  1.00%  11.13% 11/15/2025  3,456,884   3,442,190   1,199,539 
Kleopatra Finco S.a r.l. Containers, Packaging & Glass Term Loan (1/21) (USD) Loan  6M USD SOFR+ 4.73%  0.50%  10.48% 2/12/2026  1,466,250   1,463,521   1,370,035 
Kodiak BP, LLC Construction & Building Term Loan Loan  3M USD SOFR+ 3.25%  0.75%  8.75% 3/13/2028  488,700   487,657   486,868 
Koppers Inc Chemicals, Plastics, & Rubber Term Loan Loan  1M USD SOFR+ 4.00%  0.50%  9.42% 4/9/2030  997,500   968,332   999,994 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan  1M USD SOFR+ 3.50%  0.50%  8.93% 9/1/2027  488,806   481,130   477,808 
Lakeland Tours, LLC Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan  Fixed 0.00%  0.00%  13.25% 9/27/2027  1,056,778   470,434   808,436 
Lealand Finance Company B.V. Energy: Oil & Gas Exit Term Loan Loan  1M USD SOFR+ 1.00%  0.00%  6.45% 6/30/2025  350,403   350,403   178,705 
LHS BORROWER, LLC Construction & Building Term Loan (02/22) Loan  1M USD SOFR+ 4.75%  0.50%  10.18% 2/16/2029  2,488,574   2,070,979   2,196,166 
Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan  1M USD SOFR+ 3.50%  1.00%  8.95% 2/28/2025  2,616,496   2,604,897   2,477,507 
Liquid Tech Solutions Holdings, LLC Services: Business Term Loan Loan  6M USD LIBOR+ 4.75%  0.75%  9.96% 3/17/2028  980,000   977,485   962,850 
LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan  3M USD SOFR+ 4.75%  0.00%  10.27% 8/31/2027  3,900,000   3,852,878   2,499,666 
LOYALTY VENTURES INC. (b) Services: Business Term Loan B Loan  Prime 5.50%  0.50%  14.00% 11/3/2027  2,913,525   2,900,617   29,135 


Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan  1M USD SOFR+ 1.75%  0.00%  7.17% 11/11/2026  1,201,630   1,200,516   1,201,630 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD SOFR+ 3.50%  0.50%  8.95% 10/16/2028  246,875   246,024   244,767 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan (01/23) Loan  1M USD SOFR+ 4.25%  0.50%  9.68% 10/14/2028  500,000   487,372   499,530 
LSF11 TRINITY BIDCO INC Aerospace & Defense Term Loan Loan  1M USD SOFR+ 4.50%  0.00%  9.81% 6/14/2030  1,000,000   985,292   1,000,000 
LSF9 Atlantis Holdings, LLC (A Wireless) Retail Term Loan B Loan  3M USD SOFR+ 7.25%  0.75%  12.49% 3/29/2029  2,812,500   2,732,052   2,728,125 
MAGNITE, INC. Services: Business Term Loan Loan  6M USD SOFR+ 5.00%  0.75%  10.93% 4/28/2028  2,949,899   2,890,185   2,942,524 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan  1M USD SOFR+ 1.75%  0.00%  7.17% 8/29/2025  1,317,074   1,317,074   1,312,135 
Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan  3M USD LIBOR+ 1.75%  0.00%  7.26% 2/15/2027  250,000   249,714   249,375 
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan B (02/23) Loan  1M USD SOFR+ 5.00%  0.00%  10.43% 2/27/2028  3,450,000   3,355,217   3,442,617 
McGraw-Hill Education, Inc. Media: Advertising, Printing & Publishing Term Loan (07/21) Loan  1M USD SOFR+ 4.75%  0.50%  10.20% 7/28/2028  1,965,000   1,949,302   1,924,069 
MedAssets Software Inter Hldg, Inc. High Tech Industries Term Loan (11/21) (USD) Loan  1M USD SOFR+ 4.00%  0.50%  9.45% 12/18/2028  493,750   491,120   417,713 
Mermaid Bidco Inc. High Tech Industries Term Loan B2 Loan  3M USD SOFR+ 4.50%  0.75%  9.78% 12/22/2027  1,976,319   1,954,909   1,976,319 
Messer Industries GmbH Chemicals, Plastics, & Rubber Term Loan B Loan  3M USD SOFR+ 2.50%  0.00%  8.00% 3/1/2026  2,870,099   2,861,655   2,868,118 
Michaels Companies Inc Retail Term Loan B (Magic Mergeco) Loan  3M USD SOFR+ 4.25%  0.75%  9.75% 4/8/2028  2,454,925   2,440,915   2,271,640 
Momentive Performance Materials Inc. Chemicals, Plastics, & Rubber Term Loan (03/23) Loan  1M USD SOFR+ 4.50%  0.00%  9.83% 3/28/2028  498,750   479,916   493,349 
Moneygram International, Inc. Services: Business Term Loan Loan  3M USD SOFR+ 5.50%  0.50%  10.78% 5/31/2030  2,500,000   2,119,884   2,297,500 
Mosel Bidco SE High Tech Industries Term Loan B Loan  1M USD SOFR+ 4.75%  0.50%  9.97% 8/1/2030  500,000   495,000   498,750 
MPH Acquisition Holdings LLC (Multiplan) Services: Business Term Loan B (08/21) Loan  3M USD SOFR+ 4.25%  0.50%  9.92% 9/1/2028  2,977,273   2,730,578   2,793,069 
NAB Holdings, LLC (North American Bancard) Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan  3M USD SOFR+ 3.00%  0.50%  8.39% 11/23/2028  2,955,000   2,949,824   2,948,529 
Napa Management Services Corp Healthcare & Pharmaceuticals Term Loan B (02/22) Loan  1M USD SOFR+ 5.25%  0.75%  10.68% 2/22/2029  2,984,887   2,426,417   2,216,278 


Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD SOFR+ 3.50%  0.00%  8.95% 11/14/2025  3,323,547   3,309,483   3,306,929 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan 2/21 Loan  1M USD SOFR+ 3.75%  0.75%  9.18% 3/2/2028  2,722,119   2,714,693   2,376,764 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C 2/21 Loan  3M USD SOFR+ 3.75%  0.75%  9.09% 3/2/2028  87,464   87,179   76,367 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Term Loan Loan  1M USD SOFR+ 2.50%  0.00%  7.95% 9/18/2026  657,625   653,314   658,507 
Next Level Apparel, Inc. Retail Term Loan Loan  3M USD SOFR+ 7.50%  1.00%  12.91% 8/9/2024  2,649,459   2,594,257   2,291,782 
NortonLifeLock Inc. High Tech Industries Term Loan B Loan  1M USD SOFR+ 2.00%  0.50%  7.43% 9/12/2029  1,329,898   1,324,584   1,327,239 
Novae LLC Automotive Term Loan B Loan  6M USD SOFR+ 5.00%  0.75%  10.34% 12/22/2028  1,975,000   1,963,031   1,777,500 
Nuvei Technologies Corp. High Tech Industries US Term Loan Loan  1M USD SOFR+ 2.50%  0.50%  7.95% 9/29/2025  2,205,000   2,202,972   2,197,657 
Olaplex, Inc. Consumer goods: Non-durable Term Loan (2/22) Loan  1M USD SOFR+ 3.50%  0.50%  8.93% 2/23/2029  2,479,943   2,381,937   2,056,295 
On Assignment, Inc. Services: Business Term Loan 8/23 Loan  1M USD SOFR+ 2.25%  0.00%  7.57% 8/15/2030  600,000   598,500   601,128 
Open Text Corporation High Tech Industries Term Loan B (08/23) Loan  1M USD SOFR+ 2.75%  0.50%  8.18% 1/31/2030  1,492,500   1,449,521   1,493,336 
Organon & Co. Healthcare & Pharmaceuticals Term Loan USD Loan  1M USD SOFR+ 3.00%  0.50%  8.43% 6/2/2028  2,118,750   2,111,544   2,120,742 
Oxbow Carbon, LLC Metals & Mining Term Loan B (04/23) Loan  1M USD SOFR+ 4.00%  0.50%  9.43% 5/2/2030  500,000   490,234   498,960 
Pacific Gas & Electric Utilities: Electric Term Loan Loan  1M USD SOFR+ 3.00%  0.50%  8.45% 6/18/2025  1,457,431   1,454,363   1,454,604 
PACTIV EVERGREEN GROUP HOLDINGS INC. Containers, Packaging & Glass Term Loan B Loan  1M USD SOFR+ 3.25%  0.50%  8.70% 9/20/2028  982,500   978,989   981,842 
Padagis LLC Healthcare & Pharmaceuticals Term Loan Loan  3M USD SOFR+ 4.75%  0.50%  10.28% 7/6/2028  941,176   934,171   913,722 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Term Loan 1/21 Loan  1M USD SOFR+ 4.25%  0.50%  9.68% 1/7/2028  490,000   487,643   490,000 
PAR PETROLEUM LLC Energy: Oil & Gas Term Loan 2/23 Loan  3M USD SOFR+ 4.25%  0.50%  9.77% 2/27/2030  2,496,250   2,470,764   2,478,577 
PATAGONIA HOLDCO LLC Telecommunications Term Loan B Loan  3M USD SOFR+ 5.75%  0.50%  11.12% 8/1/2029  1,985,000   1,662,955   1,701,145 
Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan  1M USD SOFR+ 3.75%  0.00%  9.20% 3/30/2027  484,026   477,473   446,514 
PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan  1M USD SOFR+ 2.50%  0.00%  7.95% 5/29/2026  809,038   807,268   808,893 
PEARLS (Netherlands) Bidco B.V. Chemicals, Plastics, & Rubber USD Term Loan (02/22) Loan  3M USD SOFR+ 3.75%  0.50%  9.12% 2/28/2029  987,500   985,902   985,031 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (12/21) Loan  1M USD SOFR+ 3.25%  0.50%  8.70% 12/29/2028  166,190   166,190   161,148 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC Healthcare & Pharmaceuticals Term Loan (12/22) Loan  1M USD SOFR+ 3.25%  0.50%  8.70% 12/29/2028  1,286,349   1,281,421   1,253,225 


Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
Penn National Gaming, Inc Hotel, Gaming & Leisure Term Loan B Loan  1M USD SOFR+ 2.75%  0.50%  8.18% 5/3/2029  990,000   985,895   989,792 
Peraton Corp. Aerospace & Defense Term Loan B Loan  1M USD SOFR+ 3.75%  0.75%  9.18% 2/1/2028  5,279,071   5,264,839   5,222,163 
PHYSICIAN PARTNERS, LLC Healthcare & Pharmaceuticals Term Loan Loan  3M USD SOFR+ 4.00%  0.50%  9.39% 12/23/2028  2,473,737   2,433,386   2,302,332 
Pike Corporation Construction & Building Term Loan (8/22) Loan  1M USD SOFR+ 3.50%  0.00%  8.83% 1/21/2028  496,250   485,785   496,870 
Pitney Bowes Inc Services: Business Term Loan B Loan  1M USD SOFR+ 4.00%  0.00%  9.45% 3/17/2028  3,919,874   3,896,285   3,665,082 
Plastipak Holdings Inc. Containers, Packaging & Glass Term Loan B (11/21) Loan  1M USD SOFR+ 2.50%  0.50%  7.93% 12/1/2028  1,911,176   1,904,055   1,910,584 
Playtika Holding Corp. High Tech Industries Term Loan B (3/21) Loan  1M USD SOFR+ 2.75%  0.00%  8.20% 3/13/2028  4,398,750   4,392,164   4,392,020 
PMHC II, INC. Chemicals, Plastics, & Rubber Term Loan (02/22) Loan  3M USD SOFR+ 4.25%  0.50%  9.70% 4/21/2029  1,985,000   1,976,982   1,849,881 
PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan  6M USD SOFR+ 3.00%  0.75%  8.76% 12/29/2027  488,750   487,205   488,750 
Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan  1M USD SOFR+ 4.75%  0.75%  10.20% 2/12/2028  5,376,250   5,336,115   4,848,732 
Pre-Paid Legal Services, Inc. Services: Consumer Term Loan (12/21) Loan  1M USD SOFR+ 3.75%  0.50%  9.20% 12/15/2028  2,962,500   2,942,447   2,909,738 
Presidio, Inc. Services: Business Term Loan B (1/20) Loan  1M USD SOFR+ 3.50%  0.00%  8.93% 1/22/2027  485,000   484,590   484,394 
Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan  1M USD SOFR+ 2.75%  0.75%  8.18% 9/23/2026  3,502,552   3,502,552   3,501,817 
PRIORITY HOLDINGS, LLC Services: Consumer Term Loan Loan  3M USD SOFR+ 5.75%  1.00%  11.43% 4/27/2027  2,937,943   2,917,877   2,934,270 
PriSo Acquisition Corporation Construction & Building Term Loan (01/21) Loan  6M USD LIBOR+ 3.25%  0.75%  8.52% 12/28/2027  488,744   487,070   470,083 
Project Leopard Holdings, Inc. (NEW) High Tech Industries Term Loan B (06/22) Loan  3M USD SOFR+ 5.25%  0.50%  10.72% 7/20/2029  995,000   932,950   914,156 
Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan  3M USD SOFR+ 3.00%  1.00%  8.68% 1/29/2025  473,963   473,597   454,412 
PUG LLC Services: Consumer Term Loan B (02/20) Loan  1M USD SOFR+ 3.50%  0.00%  8.95% 2/12/2027  477,651   476,446   452,574 
Quartz AcquireCo, LLC High Tech Industries Term Loan B Loan  1M USD SOFR+ 3.50%  0.00%  8.82% 6/28/2030  1,000,000   990,143   998,750 
QUEST BORROWER LIMITED High Tech Industries Term Loan (1/22) Loan  3M USD SOFR+ 4.25%  0.50%  9.77% 2/1/2029  1,980,000   1,964,103   1,616,670 


Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
Rackspace Technology Global, Inc. High Tech Industries Term Loan (1/21) Loan  1M USD SOFR+ 2.75%  0.75%  8.18% 2/15/2028  2,959,684   2,876,272   1,313,360 
RAND PARENT LLC Transportation: Cargo Term Loan B Loan  3M USD SOFR+ 4.25%  0.00%  9.49% 3/16/2030  2,493,750   2,407,982   2,411,456 
RealPage, Inc. High Tech Industries Term Loan (04/21) Loan  1M USD SOFR+ 3.00%  0.50%  8.45% 4/24/2028  982,500   981,112   970,553 
Recess Holdings, Inc. Consumer goods: Durable Term Loan B Loan  3M USD SOFR+ 4.00%  1.00%  9.38% 3/17/2027  1,000,000   990,002   997,500 
Rent-A-Center, Inc. Retail Term Loan B2 (9/21) Loan  3M USD SOFR+ 3.25%  0.50%  8.88% 2/17/2028  1,870,226   1,834,351   1,863,213 
Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan  1M USD SOFR+ 5.50%  1.00%  10.93% 12/20/2024  4,275,513   4,239,086   3,013,040 
Resideo Funding Inc. Services: Consumer Term Loan (1/21) Loan  1M USD SOFR+ 2.25%  0.50%  7.67% 2/11/2028  1,466,250   1,464,595   1,468,537 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan  3M USD LIBOR+ 4.25%  1.00%  9.79% 4/30/2024  3,015,572   3,013,545   1,814,379 
Restoration Hardware, Inc. Retail Term Loan (9/21) Loan  1M USD SOFR+ 2.50%  0.50%  7.95% 10/20/2028  3,444,906   3,439,735   3,329,881 
Reynolds Consumer Products LLC Containers, Packaging & Glass Term Loan Loan  1M USD SOFR+ 1.75%  0.00%  7.18% 1/29/2027  1,269,432   1,269,370   1,268,137 
Reynolds Group Holdings Inc. Containers, Packaging & Glass Term Loan B2 Loan  1M USD SOFR+ 3.25%  0.00%  8.70% 2/5/2026  2,199,796   2,193,809   2,198,850 
Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan  1M USD SOFR+ 4.25%  0.00%  9.70% 11/28/2025  2,860,380   2,856,440   2,856,404 
Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan  1M USD SOFR+ 3.50%  1.00%  8.93% 6/2/2025  5,503,217   5,482,748   5,078,094 
RV Retailer LLC Automotive Term Loan Loan  3M USD SOFR+ 3.75%  0.75%  9.25% 2/8/2028  2,942,694   2,902,211   2,666,816 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 3.00%  0.75%  8.43% 9/1/2027  1,471,060   1,460,688   1,469,839 
S&S HOLDINGS LLC Services: Business Term Loan Loan  3M USD SOFR+ 5.00%  0.50%  10.41% 3/10/2028  2,446,206   2,401,356   2,315,750 
Sally Holdings LLC Retail Term Loan B Loan  1M USD SOFR+ 2.50%  0.00%  7.83% 2/27/2030  498,750   495,158   498,750 
Schweitzer-Mauduit International, Inc. High Tech Industries Term Loan B Loan  1M USD SOFR+ 3.75%  0.75%  9.20% 4/20/2028  2,940,000   2,928,860   2,895,900 


Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
Scientific Games Holdings LP Hotel, Gaming & Leisure Term Loan B Loan  3M USD SOFR+ 3.50%  0.50%  8.77% 4/4/2029  496,250   495,353   493,302 
Sedgwick Claims Management Services, Inc. Services: Business Term Loan B 2/23 Loan  1M USD SOFR+ 3.75%  0.00%  9.08% 2/17/2028  997,500   988,268   998,388 
SETANTA AIRCRAFT LEASING DAC Aerospace & Defense Term Loan Loan  3M USD LIBOR+ 2.00%  0.00%  7.54% 11/2/2028  1,000,000   998,223   999,060 
Sitel Worldwide Corporation Services: Business USD Term Loan (7/21) Loan  1M USD SOFR+ 3.75%  0.50%  9.08% 8/28/2028  1,965,000   1,958,145   1,939,455 
SiteOne Landscape Supply, LLC Services: Business Term Loan (3/21) Loan  1M USD SOFR+ 2.00%  0.50%  7.45% 3/18/2028  1,273,894   1,267,864   1,270,709 
SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan  3M USD SOFR+ 2.50%  0.00%  8.13% 1/23/2025  482,500   482,500   481,144 
Smyrna Ready Mix Concrete, LLC Construction & Building Term Loan Loan  1M USD SOFR+ 4.25%  0.50%  9.68% 4/2/2029  994,975   987,951   997,462 
Sotheby’s Services: Business Term Loan (7/21) Loan  3M USD SOFR+ 4.50%  0.50%  10.07% 1/15/2027  3,207,379   3,172,188   3,117,829 
Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber Term Loan (04/21) Loan  1M USD SOFR+ 3.25%  0.75%  8.68% 8/2/2028  1,970,000   1,963,062   1,956,466 
Specialty Pharma III Inc. Services: Business Term Loan Loan  1M USD SOFR+ 4.25%  0.75%  9.67% 3/31/2028  1,965,000   1,951,400   1,886,400 
Spin Holdco, Inc. Services: Consumer Term Loan 3/21 Loan  3M USD LIBOR+ 4.00%  0.75%  9.23% 3/4/2028  2,932,500   2,920,705   2,448,638 
Spirit Aerosystems Inc. Aerospace & Defense Term Loan (11/22) Loan  3M USD SOFR+ 4.25%  0.50%  9.62% 1/14/2027  496,250   483,643   495,009 
SRAM, LLC Consumer goods: Durable Term Loan (05/21) Loan  1M USD LIBOR+ 2.75%  0.50%  7.94% 5/12/2028  2,654,545   2,651,622   2,645,706 
STANDARD INDUSTRIES INC. Construction & Building Term Loan B Loan  1M USD SOFR+ 2.50%  0.50%  7.93% 9/22/2028  625,250   620,704   625,444 
Staples, Inc. Wholesale Term Loan (03/19) Loan  3M USD SOFR+ 5.00%  0.00%  10.63% 4/16/2026  4,318,804   4,237,122   3,695,947 
Storable, Inc High Tech Industries Term Loan B Loan  1M USD SOFR+ 3.50%  0.50%  8.83% 4/17/2028  492,500   491,874   486,447 
Summit Materials, LLC Metals & Mining Term Loan B (12/22) Loan  6M USD SOFR+ 3.00%  0.00%  8.49% 12/13/2027  248,750   246,535   249,449 
Superannuation & Investments US LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 3.75%  0.50%  9.20% 12/1/2028  985,000   977,344   981,553 
Sweetwater Borrower, LLC Retail Term Loan (8/21) Loan  1M USD SOFR+ 4.25%  0.75%  9.70% 8/2/2028  1,897,331   1,813,926   1,845,155 
Syncsort Incorporated High Tech Industries Term Loan B (10/21) Loan  3M USD SOFR+ 4.00%  0.75%  9.61% 4/24/2028  2,457,481   2,456,722   2,371,469 
Ta TT Buyer LLC Media: Broadcasting & Subscription Term Loan 3/22 Loan  3M USD SOFR+ 5.00%  0.50%  10.24% 4/2/2029  992,500   983,941   989,195 
Tenable Holdings, Inc. Services: Business Term Loan B (6/21) Loan  1M USD SOFR+ 2.75%  0.50%  8.20% 7/7/2028  985,000   983,296   980,075 


Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 5.25%  1.00%  10.68% 7/15/2025  4,360,565   4,317,489   4,345,564 
Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan 5/23 Loan  1M USD SOFR+ 6.00%  0.00%  11.32% 5/25/2028  1,890,000   1,889,528   1,795,500 
The Dun & Bradstreet Corporation Services: Business Term Loan B Loan  1M USD SOFR+ 3.00%  0.00%  8.32% 1/18/2029  246,875   245,411   246,505 
The Dun & Bradstreet Corporation Services: Business Term Loan B (7/23) Loan  1M USD SOFR+ 2.75%  0.00%  8.17% 2/6/2026  957,898   957,381   958,502 
THE KNOT WORLDWIDE INC. Services: Consumer Term Loan (1/22) Loan  6M USD SOFR+ 4.50%  0.00%  9.46% 12/19/2025  4,821,098   4,817,634   4,809,045 
Thor Industries, Inc. Automotive USD Term Loan (3/21) Loan  1M USD SOFR+ 3.00%  0.00%  8.45% 2/1/2026  847,276   838,070   846,217 
Torrid LLC Wholesale Term Loan 5/21 Loan  3M USD SOFR+ 5.50%  0.75%  11.00% 6/14/2028  3,386,066   2,931,164   2,803,662 
TORY BURCH LLC Retail Term Loan Loan  1M USD SOFR+ 3.25%  0.50%  8.70% 4/15/2028  2,319,920   2,172,038   2,287,649 
Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan  3M USD SOFR+ 3.50%  0.75%  9.13% 8/18/2027  487,500   483,086   385,491 
Trans Union LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 2.25%  0.50%  7.70% 12/1/2028  726,935   725,682   726,230 
Transdigm, Inc. Aerospace & Defense Term Loan H Loan  3M USD SOFR+ 3.25%  0.00%  8.49% 2/21/2027  1,983,403   1,980,482   1,987,747 
TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco Term Loan (03/21) Loan  3M USD SOFR+ 3.25%  0.50%  8.75% 3/31/2028  1,470,003   1,464,966   1,443,263 
Tronox Finance LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD SOFR+ 2.50%  0.00%  7.95% 3/10/2028  346,923   346,469   340,370 
Tronox Finance LLC Chemicals, Plastics, & Rubber Incremental Term Loan Loan 1M USD SOFR+ 3.50%  0.50%  8.81% 8/11/2028  2,000,000   1,980,000   1,982,500 
TruGreen Limited Partnership Services: Consumer Term Loan Loan 1M USD SOFR+ 4.00%  0.75%  9.43% 10/29/2027  949,631   944,891   902,548 
Uber Technologies, Inc. Transportation: Consumer Term Loan 2/23 Loan 3M USD SOFR+ 2.75%  0.00%  8.00% 2/27/2030  497,500   496,256   498,037 
Ultra Clean Holdings, Inc. High Tech Industries Incremental Term Loan 3/21 Loan 1M USD SOFR+ 3.75%  0.00%  9.20% 8/27/2025  775,980   774,109   775,980 
Unimin Corporation Metals & Mining Term Loan (12/20) Loan 3M USD SOFR+ 4.00%  1.00%  9.53% 7/31/2026  496,815   479,018   492,677 


Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan 1M USD SOFR+ 3.25%  0.00%  8.70% 10/22/2025  1,289,967   1,259,270   1,290,961 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/21) Loan 1M USD SOFR+ 3.25%  0.75%  8.70% 3/15/2026  2,434,229   2,430,012   2,434,229 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/22) Loan 3M USD SOFR+ 4.25%  0.50%  9.49% 6/25/2029  247,500   241,035   246,339 
Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD SOFR+ 3.00%  0.00%  8.45% 1/20/2028  1,819,138   1,818,194   1,819,647 
Vaco Holdings, LLC Services: Business Term Loan (01/22) Loan 6M USD SOFR+ 5.00%  0.75%  10.59% 1/19/2029  2,330,381   2,268,054   2,232,319 
Vericast Corp. Media: Advertising, Printing & Publishing Term Loan Loan 3M USD SOFR+ 7.75%  1.00%  13.25% 6/15/2026  1,201,006   1,199,993   1,089,913 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan 3M USD SOFR+ 4.00%  0.00%  9.65% 8/20/2025  1,360,887   1,358,008   1,254,575 
Vertex Aerospace Services Corp Aerospace & Defense Term Loan (10/21) Loan 1M USD SOFR+ 3.50%  0.75%  8.93% 12/6/2028  987,500   983,984   985,910 
VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan (01/22) Loan 1M USD SOFR+ 3.00%  0.50%  8.42% 1/12/2029  3,069,879   3,064,346   3,045,320 
Viasat Inc Telecommunications Term Loan (2/22) Loan 1M USD SOFR+ 4.50%  0.50%  9.83% 3/2/2029  2,982,444   2,918,892   2,912,356 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (9/21) Loan 1M USD SOFR+ 2.25%  0.00%  7.68% 9/28/2028  2,838,409   2,831,548   2,831,313 
Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan 1M USD SOFR+ 1.75%  0.00%  7.20% 12/31/2025  891,933   891,836   890,836 
Vizient, Inc Healthcare & Pharmaceuticals Term Loan 4/22 Loan 1M USD SOFR+ 2.25%  0.50%  7.67% 5/16/2029  495,000   490,766   495,312 
VM Consolidated, Inc. Construction & Building Term Loan B (3/21) Loan 1M USD SOFR+ 3.25%  0.00%  8.70% 3/24/2028  1,853,159   1,851,757   1,850,843 
Vouvray US Finance LLC High Tech Industries Term Loan Loan 1M USD SOFR+ 6.00%  1.00%  11.33% 9/30/2025  468,750   468,750   456,834 
Walker & Dunlop, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (12/22) Loan 1M USD SOFR+ 3.00%  0.50%  8.43% 12/15/2028  498,750   489,641   498,750 


Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		  Cost  Fair
Value		 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G Loan 1M USD SOFR+ 2.13%  0.00%  7.57% 1/20/2028  1,250,000   1,249,884   1,248,488 
Watlow Electric Manufacturing Company High Tech Industries Term Loan B Loan 3M USD SOFR+ 3.75%  0.50%  9.38% 3/2/2028  2,443,750   2,436,246   2,407,094 
WEX Inc. Services: Business Term Loan B (3/21) Loan 1M USD SOFR+ 2.25%  0.00%  7.70% 3/31/2028  2,939,887   2,932,015   2,943,150 
WildBrain Ltd. Media: Diversified & Production Term Loan Loan 1M USD SOFR+ 4.25%  0.75%  9.70% 3/27/2028  1,955,000   1,927,225   1,917,132 
Wyndham Hotels & Resorts, Inc. Hotel, Gaming & Leisure Term Loan  5/23 Loan 1M USD SOFR+ 2.25%  0.00%  7.68% 5/24/2030  1,000,000   995,083   999,720 
Xperi Corporation High Tech Industries Term Loan Loan 1M USD SOFR+ 3.50%  0.00%  8.95% 6/8/2028  2,240,853   2,235,294   2,239,464 
Zayo Group, LLC Telecommunications Term Loan 4/22 Loan 1M USD SOFR+ 4.33%  0.50%  9.66% 3/9/2027  987,500   968,139   789,753 
ZEBRA BUYER (Allspring) LLC Banking, Finance, Insurance & Real Estate Term Loan 4/21 Loan 3M USD SOFR+ 3.25%  0.50%  8.75% 11/1/2028  1,876,008   1,866,701   1,871,656 
Zekelman Industries, Inc. Metals & Mining Term Loan (01/20) Loan 1M USD SOFR+ 2.00%  0.00%  7.43% 1/25/2027  957,750   957,750   950,567 
Zest Acquisition Corp. Healthcare & Pharmaceuticals Term Loan (1/23) Loan 1M USD SOFR+ 5.50%  0.00%  10.82% 2/8/2028  1,990,000   1,899,209   1,932,788 
Zodiac Pool Solutions Consumer goods: Durable Term Loan (1/22) Loan 1M USD SOFR+ 1.93%  0.50%  7.36% 1/29/2029  492,500   491,643   489,564 
                           $639,745,957  $603,116,929 

  Number of
Shares		  Cost  Fair Value 
Cash and cash equivalents         
U.S. Bank Money Market (c)  14,149,358  $14,149,358  $14,149,358 
Total cash and cash equivalents  14,149,358  $14,149,358  $14,149,358 

 

(a)(a)All or a portion of this investment has an unfunded commitment as of MayAugust 31, 2023.

 
(b)As of MayAugust 31, 2023, the investment was in default and on non-accrual status.

 
(c)Included within cash and cash equivalents in Saratoga CLO’s Statements of Assets and Liabilities as of MayAugust 31, 2023.

 
(d)Investments include Payment-in-Kind Interest.

 

LIBOR—London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

 

1M USD LIBOR—The 1 month USD LIBOR rate as of MayAugust 31, 2023 was 5.19%5.44%.

3M USD LIBOR—The 3 month USD LIBOR rate as of MayAugust 31, 2023 was 5.52%5.66%.

6M USD LIBOR—The 6 month USD LIBOR rate as of MayAugust 31, 2023 was 5.65%5.88%.

1M SOFR - The 1 month SOFR rate as of MayAugust 31, 2023 was 5.17%5.33%.

3M SOFR - The 3 month SOFR rate as of MayAugust 31, 2023 was 5.29%5.40%.

6M SOFR - The 6 month SOFR rate as of MayAugust 31, 2023 was 5.32%5.45%.

 

Prime—The Prime Rate as of MayAugust 31, 2023 was 8.25%8.50%.

 

See accompanying notes to financial statements

 


 

 

Saratoga Investment Corp. CLO 2013-1, Ltd.

 

Schedule of Investments

 

February 28, 2023

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		  Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/
LIBOR
Floor		 Current
Rate
(All In)		 Maturity
Date		 Principal/
Number of
Shares		 Cost Fair
Value		 
19TH HOLDINGS GOLF, LLC Consumer goods: Durable Term Loan Loan 1M USD SOFR+ 3.00%  0.50%  7.67% 2/7/2029 $1,997,500 $1,924,905 $1,901,380  Consumer goods: Durable Term Loan Loan 1M USD SOFR+  3.00%  0.50%  7.67% 2/7/2029 $1,997,500  $1,924,905  $1,901,380 
888 Acquisitions Limited Hotel, Gaming & Leisure Term Loan B Loan 3M USD SOFR+ 5.25%  0.00%  9.93% 7/8/2028  2,494,565  2,143,085  2,126,617  Hotel, Gaming & Leisure Term Loan B Loan 3M USD SOFR+  5.25%  0.00%  9.93% 7/8/2028  2,494,565   2,143,085   2,126,617 
ADMI Corp. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 3.00%  0.00%  7.63% 4/30/2025  1,910,276  1,907,516  1,825,517  Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+  3.00%  0.00%  7.63% 4/30/2025  1,910,276   1,907,516   1,825,517 
Adtalem Global Education Inc. Services: Business Term Loan B (02/21) Loan 1M USD LIBOR+ 4.00%  0.75%  8.63% 8/11/2028  691,846  686,475  689,992  Services: Business Term Loan B (02/21) Loan 1M USD LIBOR+  4.00%  0.75%  8.63% 8/11/2028  691,846   686,475   689,992 
Aegis Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 5.50%  1.00%  10.36% 5/9/2025  2,349,601  2,341,307  2,268,540  Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  5.50%  1.00%  10.36% 5/9/2025  2,349,601   2,341,307   2,268,540 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (09/20) Loan 1M USD LIBOR+ 2.75%  0.75%  7.38% 1/4/2026  214,286  213,103  212,946  Healthcare & Pharmaceuticals Term Loan (09/20) Loan 1M USD LIBOR+  2.75%  0.75%  7.38% 1/4/2026  214,286   213,103   212,946 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (1/19) Loan 1M USD LIBOR+ 2.75%  0.00%  7.38% 1/4/2026  1,468,430  1,463,378  1,457,416  Healthcare & Pharmaceuticals Term Loan (1/19) Loan 1M USD LIBOR+  2.75%  0.00%  7.38% 1/4/2026  1,468,430   1,463,378   1,457,416 
AHEAD DB Holdings, LLC Services: Business Term Loan (04/21) Loan 3M USD LIBOR+ 3.75%  0.75%  8.48% 10/18/2027  2,955,000  2,871,299  2,915,285  Services: Business Term Loan (04/21) Loan 3M USD LIBOR+  3.75%  0.75%  8.48% 10/18/2027  2,955,000   2,871,299   2,915,285 
AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense Term Loan B (USD) Loan 6M USD LIBOR+ 3.50%  1.00%  8.17% 1/18/2027  -  -  -  Aerospace & Defense Term Loan B (USD) Loan 6M USD LIBOR+  3.50%  1.00%  8.17% 1/18/2027  -   -   - 
Air Canada Transportation: Consumer Term Loan B (07/21) Loan 3M USD LIBOR+ 3.50%  0.75%  8.37% 8/11/2028  1,990,000  1,851,613  1,984,408  Transportation: Consumer Term Loan B (07/21) Loan 3M USD LIBOR+  3.50%  0.75%  8.37% 8/11/2028  1,990,000   1,851,613   1,984,408 
AIS HoldCo, LLC Services: Business Term Loan Loan 3M USD LIBOR+ 5.00%  0.00%  9.83% 8/15/2025  4,789,642  4,700,517  4,622,004  Services: Business Term Loan Loan 3M USD LIBOR+  5.00%  0.00%  9.83% 8/15/2025  4,789,642   4,700,517   4,622,004 
AIT Worldwide Logistics Holdings, Inc. Transportation: Cargo Term Loan (04/21) Loan 1M USD LIBOR+ 4.75%  0.75%  9.33% 4/6/2028  2,500,000  2,333,827  2,407,300  Transportation: Cargo Term Loan (04/21) Loan 1M USD LIBOR+  4.75%  0.75%  9.33% 4/6/2028  2,500,000   2,333,827   2,407,300 
AL GCX Holdings (Arclight) T/L B Energy: Oil & Gas Term Loan B Loan 3M USD SOFR+ 3.50%  0.50%  8.28% 5/17/2029  976,802  971,918  975,581  Energy: Oil & Gas Term Loan B Loan 3M USD SOFR+  3.50%  0.50%  8.28% 5/17/2029  976,802   971,918   975,581 
Alchemy US Holdco 1, LLC Metals & Mining Term Loan Loan 1M USD LIBOR+ 5.50%  0.00%  5.60% 10/10/2025  1,654,803  1,644,633  1,551,378  Metals & Mining Term Loan Loan 1M USD LIBOR+  5.50%  0.00%  5.60% 10/10/2025  1,654,803   1,644,633   1,551,378 
AlixPartners, LLP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan 1M USD LIBOR+ 2.75%  0.50%  7.38% 2/4/2028  245,625  245,275  245,050  Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan 1M USD LIBOR+  2.75%  0.50%  7.38% 2/4/2028  245,625   245,275   245,050 
Alkermes, Inc. Healthcare & Pharmaceuticals Term Loan B (3/21) Loan 1M USD LIBOR+ 2.50%  0.50%  7.11% 3/12/2026  2,126,218  2,112,914  2,062,432  Healthcare & Pharmaceuticals Term Loan B (3/21) Loan 1M USD LIBOR+  2.50%  0.50%  7.11% 3/12/2026  2,126,218   2,112,914   2,062,432 
Allen Media, LLC Media: Diversified & Production Term Loan (7/21) Loan 3M USD SOFR+ 5.50%  0.00%  10.23% 2/10/2027  4,394,261  4,368,566  3,649,434  Media: Diversified & Production Term Loan (7/21) Loan 3M USD SOFR+  5.50%  0.00%  10.23% 2/10/2027  4,394,261   4,368,566   3,649,434 
Alliant Holdings Intermediate, LLC Banking, Finance, Insurance & Real Estate Term Loan B4 Loan 1M USD LIBOR+ 3.50%  0.50%  8.09% 11/5/2027  987,500  986,800  974,781  Banking, Finance, Insurance & Real Estate Term Loan B4 Loan 1M USD LIBOR+  3.50%  0.50%  8.09% 11/5/2027  987,500   986,800   974,781 
Allied Universal Holdco LLC Services: Business Term Loan 4/21 Loan 1M USD SOFR+ 3.75%  0.50%  8.47% 5/12/2028  1,975,000  1,967,474  1,900,404  Services: Business Term Loan 4/21 Loan 1M USD SOFR+  3.75%  0.50%  8.47% 5/12/2028  1,975,000   1,967,474   1,900,404 
Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate Term Loan B (03/18) Loan 3M USD LIBOR+ 4.00%  1.00%  8.73% 4/3/2024  1,126,283  1,124,635  893,142  Banking, Finance, Insurance & Real Estate Term Loan B (03/18) Loan 3M USD LIBOR+  4.00%  1.00%  8.73% 4/3/2024  1,126,283   1,124,635   893,142 
Altium Packaging LLC Containers, Packaging & Glass Term Loan (01/21) Loan 1M USD LIBOR+ 2.75%  0.50%  7.38% 1/29/2028  491,250  489,554  480,506  Containers, Packaging & Glass Term Loan (01/21) Loan 1M USD LIBOR+  2.75%  0.50%  7.38% 1/29/2028  491,250   489,554   480,506 
American Airlines T/L (2/23) Transportation: Consumer Term Loan Loan N/A N/A   N/A   N/A  N/A  -  27  -  Transportation: Consumer Term Loan Loan N/A  N/A   N/A   N/A  N/A  -   27   - 
American Axle & Manufacturing Inc. Automotive Term Loan (12/22) Loan 1M USD SOFR+ 3.50%  0.50%  8.16% 12/5/2029  500,000  485,367  499,000  Automotive Term Loan (12/22) Loan 1M USD SOFR+  3.50%  0.50%  8.16% 12/5/2029  500,000   485,367   499,000 
American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.50%  1.00%  9.07% 4/6/2024  3,012,861  3,011,462  3,011,596  Media: Advertising, Printing & Publishing Term Loan Loan 1M USD LIBOR+  4.50%  1.00%  9.07% 4/6/2024  3,012,861   3,011,462   3,011,596 
American Trailer World Corp Automotive Term Loan Loan 1M USD SOFR+ 3.75%  0.75%  8.47% 3/3/2028  1,357,439  1,354,762  1,194,967  Automotive Term Loan Loan 1M USD SOFR+  3.75%  0.75%  8.47% 3/3/2028  1,357,439   1,354,762   1,194,967 
AmWINS Group, LLC Banking, Finance, Insurance & Real Estate Term Loan 2/21 Loan 1M USD LIBOR+ 2.25%  0.75%  6.88% 2/17/2028  1,960,017  1,940,778  1,926,462  Banking, Finance, Insurance & Real Estate Term Loan 2/21 Loan 1M USD LIBOR+  2.25%  0.75%  6.88% 2/17/2028  1,960,017   1,940,778   1,926,462 
Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+ 3.75%  0.00%  8.48% 8/11/2025  957,500  955,643  791,134  Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+  3.75%  0.00%  8.48% 8/11/2025  957,500   955,643   791,134 
Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan 3M USD LIBOR+ 2.75%  1.00%  7.48% 12/7/2023  470,138  469,901  333,915  Containers, Packaging & Glass Term Loan (07/17) Loan 3M USD LIBOR+  2.75%  1.00%  7.48% 12/7/2023  470,138   469,901   333,915 
Anchor Packaging, LLC Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+ 4.00%  0.00%  8.63% 7/18/2026  977,215  971,052  952,785  Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+  4.00%  0.00%  8.63% 7/18/2026  977,215   971,052   952,785 
ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 6.00%  0.75%  10.63% 11/19/2027  2,970,000  2,922,446  2,866,050  Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+  6.00%  0.75%  10.63% 11/19/2027  2,970,000   2,922,446   2,866,050 
AP Core Holdings II LLC High Tech Industries Term Loan B1 Loan 1M USD LIBOR+  5.50%  0.75%  10.13% 9/1/2027  1,875,000   1,852,824   1,802,344 
AP Core Holdings II LLC High Tech Industries Term Loan B2 Loan 1M USD LIBOR+  5.50%  0.75%  10.13% 9/1/2027  500,000   494,095   480,415 
APEX GROUP TREASURY LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 3M USD SOFR+  5.00%  0.50%  9.66% 7/26/2028  500,000   468,464   497,500 
APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan 1M USD LIBOR+  2.50%  0.00%  7.13% 10/1/2026  1,757,184   1,751,429   1,754,548 

  


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		  Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/
LIBOR
Floor		 Current
Rate
(All In)		 Maturity
Date		 Principal/
Number of
Shares		 Cost Fair
Value		 
AP Core Holdings II LLC High Tech Industries Term Loan B1 Loan 1M USD LIBOR+ 5.50%  0.75%  10.13% 9/1/2027  1,875,000  1,852,824  1,802,344 
AP Core Holdings II LLC High Tech Industries Term Loan B2 Loan 1M USD LIBOR+ 5.50%  0.75%  10.13% 9/1/2027  500,000  494,095  480,415 
APEX GROUP TREASURY LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 3M USD SOFR+ 5.00%  0.50%  9.66% 7/26/2028  500,000  468,464  497,500 
APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan 1M USD LIBOR+ 2.50%  0.00%  7.13% 10/1/2026  1,757,184  1,751,429  1,754,548 
APLP Holdings Limited Partnership Energy: Electricity Term Loan B (3/21) Loan 3M USD LIBOR+ 3.75%  1.00%  8.48% 5/14/2027  440,541  437,327  440,726  Energy: Electricity Term Loan B (3/21) Loan 3M USD LIBOR+  3.75%  1.00%  8.48% 5/14/2027  440,541   437,327   440,726 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.75%  0.00%  7.38% 5/15/2026  2,939,086  2,914,348  2,850,914  Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.75%  0.00%  7.38% 5/15/2026  2,939,086   2,914,348   2,850,914 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 (2/21) Loan 1M USD LIBOR+ 3.50%  0.50%  8.13% 3/6/2028  982,500  975,109  928,463  Banking, Finance, Insurance & Real Estate Term Loan B1 (2/21) Loan 1M USD LIBOR+  3.50%  0.50%  8.13% 3/6/2028  982,500   975,109   928,463 
AppLovin Corporation High Tech Industries Term Loan (10/21) Loan 3M USD SOFR+ 3.10%  0.50%  7.70% 10/21/2028  1,488,750  1,485,729  1,472,002  High Tech Industries Term Loan (10/21) Loan 3M USD SOFR+  3.10%  0.50%  7.70% 10/21/2028  1,488,750   1,485,729   1,472,002 
AppLovin Corporation High Tech Industries Term Loan B Loan 3M USD SOFR+ 3.35%  0.00%  7.94% 8/15/2025  979,592  979,592  972,245  High Tech Industries Term Loan B Loan 3M USD SOFR+  3.35%  0.00%  7.94% 8/15/2025  979,592   979,592   972,245 
Aramark Corporation Services: Consumer Term Loan B (4/21) Loan 1M USD LIBOR+ 2.50%  0.00%  7.13% 4/1/2028  1,753,715  1,747,448  1,747,139  Services: Consumer Term Loan B (4/21) Loan 1M USD LIBOR+  2.50%  0.00%  7.13% 4/1/2028  1,753,715   1,747,448   1,747,139 
Aramark Corporation Services: Consumer Term Loan Loan 1M USD LIBOR+ 1.75%  0.00%  6.38% 1/15/2027  2,331,250  2,280,733  2,305,023  Services: Consumer Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  6.38% 1/15/2027  2,331,250   2,280,733   2,305,023 
ARC FALCON I INC. Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+ 3.75%  0.50%  8.38% 9/23/2028  863,885  860,682  811,836  Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+  3.75%  0.50%  8.38% 9/23/2028  863,885   860,682   811,836 
ARC FALCON I INC. (a) Chemicals, Plastics, & Rubber Delayed Draw Term Loan Loan 3M USD LIBOR+ 1.00%  0.50%  1.00% 9/29/2028  -  (512)  (7,675) Chemicals, Plastics, & Rubber Delayed Draw Term Loan Loan 3M USD LIBOR+  1.00%  0.50%  1.00% 9/29/2028  -   (512)  (7,675)
Arches Buyer Inc. Services: Consumer Term Loan B Loan 1M USD SOFR+ 3.25%  0.50%  7.97% 12/6/2027  1,484,848  1,477,106  1,395,758  Services: Consumer Term Loan B Loan 1M USD SOFR+  3.25%  0.50%  7.97% 12/6/2027  1,484,848   1,477,106   1,395,758 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan 1M USD SOFR+ 4.25%  0.00%  8.97% 10/1/2025  1,916,203  1,913,228  1,887,460  Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan 1M USD SOFR+  4.25%  0.00%  8.97% 10/1/2025  1,916,203   1,913,228   1,887,460 
ASP BLADE HOLDINGS, INC. Capital Equipment Term Loan Loan 3M USD LIBOR+ 4.00%  0.50%  8.73% 10/7/2028  99,059  98,658  82,491  Capital Equipment Term Loan Loan 3M USD LIBOR+  4.00%  0.50%  8.73% 10/7/2028  99,059   98,658   82,491 
Asplundh Tree Expert, LLC Services: Business Term Loan 2/21 Loan 1M USD LIBOR+ 1.75%  0.00%  6.38% 9/7/2027  977,500  974,396  974,010  Services: Business Term Loan 2/21 Loan 1M USD LIBOR+  1.75%  0.00%  6.38% 9/7/2027  977,500   974,396   974,010 
AssuredPartners Capital, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (2/20) Loan 1M USD LIBOR+ 3.50%  0.00%  8.13% 2/12/2027  989,796  986,847  967,773  Banking, Finance, Insurance & Real Estate Term Loan B (2/20) Loan 1M USD LIBOR+  3.50%  0.00%  8.13% 2/12/2027  989,796   986,847   967,773 
AssuredPartners Inc. Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+ 3.50%  0.50%  8.12% 2/12/2027  496,250  495,400  485,084  Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+  3.50%  0.50%  8.12% 2/12/2027  496,250   495,400   485,084 
AssuredPartners Inc. Banking, Finance, Insurance & Real Estate Incremental Term Loan (7/21) Loan 1M USD LIBOR+ 3.50%  0.50%  8.13% 2/12/2027  985,000  985,000  962,838  Banking, Finance, Insurance & Real Estate Incremental Term Loan (7/21) Loan 1M USD LIBOR+  3.50%  0.50%  8.13% 2/12/2027  985,000   985,000   962,838 
ASTRO ONE ACQUISITION CORPORATION Consumer goods: Durable Term Loan Loan 3M USD LIBOR+ 5.50%  0.75%  10.23% 9/15/2028  2,970,000  2,946,187  1,767,150  Consumer goods: Durable Term Loan Loan 3M USD LIBOR+  5.50%  0.75%  10.23% 9/15/2028  2,970,000   2,946,187   1,767,150 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B10 Loan 3M USD SOFR+ 4.00%  0.00%  8.68% 8/19/2028  1,995,000  1,901,937  1,866,741  Banking, Finance, Insurance & Real Estate Term Loan B10 Loan 3M USD SOFR+  4.00%  0.00%  8.68% 8/19/2028  1,995,000   1,901,937   1,866,741 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan 1M USD LIBOR+ 3.25%  0.00%  7.88% 12/18/2026  2,964,858  2,956,667  2,817,683  Banking, Finance, Insurance & Real Estate Term Loan B8 Loan 1M USD LIBOR+  3.25%  0.00%  7.88% 12/18/2026  2,964,858   2,956,667   2,817,683 
ATHENAHEALTH GROUP INC. Healthcare & Pharmaceuticals Term Loan B (2/22) Loan 1M USD SOFR+ 3.50%  0.50%  8.06% 2/15/2029  1,330,543  1,325,206  1,227,426  Healthcare & Pharmaceuticals Term Loan B (2/22) Loan 1M USD SOFR+  3.50%  0.50%  8.06% 2/15/2029  1,330,543   1,325,206   1,227,426 
ATHENAHEALTH GROUP INC. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (02/22) Loan 3M USD LIBOR+ 3.50%  0.50%  3.50% 2/15/2029  -  -  (12,636) Healthcare & Pharmaceuticals Delayed Draw Term Loan (02/22) Loan 3M USD LIBOR+  3.50%  0.50%  3.50% 2/15/2029  -   -   (12,636)
Avison Young (Canada) Inc Services: Business Term Loan (08/22) Loan 1M USD SOFR+ 7.00%  0.00%  11.73% 1/31/2026  748,125  708,918  635,906  Services: Business Term Loan (08/22) Loan 1M USD SOFR+  7.00%  0.00%  11.73% 1/31/2026  748,125   708,918   635,906 
Avison Young (Canada) Inc Services: Business Term Loan Loan 1M USD SOFR+ 5.75%  0.00%  10.48% 1/31/2026  3,370,882  3,344,831  2,646,142  Services: Business Term Loan Loan 1M USD SOFR+  5.75%  0.00%  10.48% 1/31/2026  3,370,882   3,344,831   2,646,142 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 (7/21) Loan 1M USD LIBOR+  2.25%  0.50%  6.85% 12/1/2027  490,000   486,530   489,539 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3 Loan 1M USD LIBOR+  1.75%  0.75%  6.35% 1/15/2025  1,000,000   932,184   998,440 
Axalta Coating Systems Dutch Holding B B.V. Chemicals, Plastics, & Rubber Term Loan B-4 Dollar Loan 3M USD SOFR+  3.00%  0.50%  7.51% 12/7/2029  1,000,000   990,447   1,003,570 
AZURITY PHARMACEUTICALS, INC. Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+  6.00%  0.75%  10.75% 9/20/2027  475,000   463,094   457,188 
B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  7.13% 10/10/2026  642,295   638,890   613,391 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan 1M USD LIBOR+  1.75%  0.00%  6.38% 11/19/2026  1,455,000   1,430,342   1,440,712 
BAKELITE UK INTERMEDIATE LTD. Chemicals, Plastics, & Rubber Term Loan Loan 3M USD SOFR+  4.00%  0.50%  8.73% 5/29/2029  995,000   990,609   940,275 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  3.50%  0.50%  8.10% 10/14/2027  1,226,325   1,215,617   1,205,637 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		  Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/
LIBOR
Floor		 Current
Rate
(All In)		 Maturity
Date		 Principal/
Number of
Shares		 Cost Fair
Value		 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 (7/21) Loan 1M USD LIBOR+ 2.25%  0.50%  6.85% 12/1/2027  490,000  486,530  489,539 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3 Loan 1M USD LIBOR+ 1.75%  0.75%  6.35% 1/15/2025  1,000,000  932,184  998,440 
Axalta Coating Systems Dutch Holding B B.V. Chemicals, Plastics, & Rubber Term Loan B-4 Dollar Loan 3M USD SOFR+ 3.00%  0.50%  7.51% 12/7/2029  1,000,000  990,447  1,003,570 
AZURITY PHARMACEUTICALS, INC. Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+ 6.00%  0.75%  10.75% 9/20/2027  475,000  463,094  457,188 
B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan 1M USD LIBOR+ 2.50%  0.00%  7.13% 10/10/2026  642,295  638,890  613,391 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan 1M USD LIBOR+ 1.75%  0.00%  6.38% 11/19/2026  1,455,000  1,430,342  1,440,712 
BAKELITE UK INTERMEDIATE LTD. Chemicals, Plastics, & Rubber Term Loan Loan 3M USD SOFR+ 4.00%  0.50%  8.73% 5/29/2029  995,000  990,609  940,275 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 3.50%  0.50%  8.10% 10/14/2027  1,226,325  1,215,617  1,205,637 
Bausch Health Companies Inc. Healthcare & Pharmaceuticals Term Loan B (1/22) Loan 1M USD SOFR+ 5.25%  0.50%  9.91% 2/1/2027  1,950,000  1,764,574  1,534,299  Healthcare & Pharmaceuticals Term Loan B (1/22) Loan 1M USD SOFR+  5.25%  0.50%  9.91% 2/1/2027  1,950,000   1,764,574   1,534,299 
Belfor Holdings Inc. Services: Consumer Term Loan B-2 (3/22) Loan 1M USD SOFR+ 4.25%  0.50%  8.87% 4/6/2026  994,911  971,026  992,424  Services: Consumer Term Loan B-2 (3/22) Loan 1M USD SOFR+  4.25%  0.50%  8.87% 4/6/2026  994,911   971,026   992,424 
Belfor Holdings Inc. Services: Consumer Term Loan Loan 1M USD LIBOR+ 4.00%  0.00%  8.63% 4/6/2026  245,547  245,547  244,995  Services: Consumer Term Loan Loan 1M USD LIBOR+  4.00%  0.00%  8.63% 4/6/2026  245,547   245,547   244,995 
Belron Finance US LLC Automotive Term Loan B (3/21) Loan 3M USD LIBOR+ 2.50%  0.50%  7.38% 4/13/2028  1,965,000  1,950,181  1,960,913  Automotive Term Loan B (3/21) Loan 3M USD LIBOR+  2.50%  0.50%  7.38% 4/13/2028  1,965,000   1,950,181   1,960,913 
Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Term Loan Loan 3M USD SOFR+ 3.25%  0.50%  7.93% 1/24/2029  1,990,000  1,988,811  1,804,273  Beverage, Food & Tobacco Term Loan Loan 3M USD SOFR+  3.25%  0.50%  7.93% 1/24/2029  1,990,000   1,988,811   1,804,273 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan (6/21) Loan 1M USD LIBOR+ 2.75%  0.50%  7.38% 4/23/2026  1,465,141  1,457,842  1,441,332  Banking, Finance, Insurance & Real Estate Term Loan (6/21) Loan 1M USD LIBOR+  2.75%  0.50%  7.38% 4/23/2026  1,465,141   1,457,842   1,441,332 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.25%  0.00%  6.88% 4/23/2026  979,747  975,006  952,804  Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.25%  0.00%  6.88% 4/23/2026  979,747   975,006   952,804 
Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber Term Loan (2/21) Loan 3M USD LIBOR+ 2.50%  0.00%  7.23% 3/4/2028  982,500  980,692  967,763  Chemicals, Plastics, & Rubber Term Loan (2/21) Loan 3M USD LIBOR+  2.50%  0.00%  7.23% 3/4/2028  982,500   980,692   967,763 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan  12/22 Loan 1M USD SOFR+ 3.50%  0.50%  8.12% 12/12/2029  498,750  486,572  496,007  Consumer goods: Durable Term Loan 12/22 Loan 1M USD SOFR+  3.50%  0.50%  8.12% 12/12/2029  498,750   486,572   496,007 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan 1M USD LIBOR+ 2.00%  0.00%  6.63% 5/24/2027  1,455,049  1,449,140  1,416,854  Consumer goods: Durable Term Loan (1/20) Loan 1M USD LIBOR+  2.00%  0.00%  6.63% 5/24/2027  1,455,049   1,449,140   1,416,854 
Boxer Parent Company, Inc. High Tech Industries Term Loan (2/21) Loan 1M USD LIBOR+ 3.75%  0.00%  8.38% 10/2/2025  516,794  516,794  509,827  High Tech Industries Term Loan (2/21) Loan 1M USD LIBOR+  3.75%  0.00%  8.38% 10/2/2025  516,794   516,794   509,827 
Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.25%  0.00%  9.04% 9/5/2025  957,500  955,597  929,378  Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  4.25%  0.00%  9.04% 9/5/2025  957,500   955,597   929,378 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Term Loan B-3 Loan 1M USD LIBOR+ 3.50%  0.00%  8.13% 3/5/2026  982,500  982,500  967,556  Healthcare & Pharmaceuticals Term Loan B-3 Loan 1M USD LIBOR+  3.50%  0.00%  8.13% 3/5/2026  982,500   982,500   967,556 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan 1M USD LIBOR+ 3.00%  0.00%  7.63% 1/22/2027  2,948,786  2,944,577  2,906,412  Banking, Finance, Insurance & Real Estate Term Loan B3 Loan 1M USD LIBOR+  3.00%  0.00%  7.63% 1/22/2027  2,948,786   2,944,577   2,906,412 
Brookfield WEC Holdings Inc. Energy: Electricity Term Loan (1/21) Loan 1M USD LIBOR+ 2.75%  0.50%  7.38% 8/1/2025  1,462,613  1,464,152  1,456,090  Energy: Electricity Term Loan (1/21) Loan 1M USD LIBOR+  2.75%  0.50%  7.38% 8/1/2025  1,462,613   1,464,152   1,456,090 
BROWN GROUP HOLDING, LLC Aerospace & Defense Term Loan B-2 Loan 1M USD SOFR+ 3.75%  0.00%  8.37% 6/8/2029  498,750  487,209  498,336  Aerospace & Defense Term Loan B-2 Loan 1M USD SOFR+  3.75%  0.00%  8.37% 6/8/2029  498,750   487,209   498,336 
Buckeye Partners, L.P. Utilities: Oil & Gas Term Loan (1/21) Loan 1M USD LIBOR+ 2.25%  0.00%  6.82% 11/1/2026  1,950,188  1,941,198  1,946,931  Utilities: Oil & Gas Term Loan (1/21) Loan 1M USD LIBOR+  2.25%  0.00%  6.82% 11/1/2026  1,950,188   1,941,198   1,946,931 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 3.50%  0.50%  8.13% 3/31/2028  2,462,500  2,443,814  2,437,875  Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+  3.50%  0.50%  8.13% 3/31/2028  2,462,500   2,443,814   2,437,875 
Callaway Golf Company Retail Term Loan B Loan 1M USD LIBOR+ 4.50%  0.00%  9.13% 1/4/2026  675,000  668,575  674,582  Retail Term Loan B Loan 1M USD LIBOR+  4.50%  0.00%  9.13% 1/4/2026  675,000   668,575   674,582 
Camping World, Inc. Retail Term Loan B (5/21) Loan 1M USD LIBOR+ 2.50%  0.75%  7.09% 6/5/2028  2,487,342  2,268,038  2,208,560  Retail Term Loan B (5/21) Loan 1M USD LIBOR+  2.50%  0.75%  7.09% 6/5/2028  2,487,342   2,268,038   2,208,560 
CareerBuilder, LLC Services: Business Term Loan Loan 3M USD LIBOR+  6.75%  1.00%  11.48% 7/31/2023  5,393,388   5,347,671   3,513,792 
Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan 1M USD LIBOR+  3.75%  0.00%  8.38% 1/27/2027  1,963,384   1,954,023   1,375,469 
CASTLELAKE AVIATION LLC Aerospace & Defense Term Loan B Loan 1M USD SOFR+  2.75%  0.50%  7.31% 10/21/2027  1,000,000   992,500   987,080 
CBI BUYER, INC. Consumer goods: Durable Term Loan Loan 1M USD LIBOR+  3.25%  0.50%  7.88% 1/6/2028  2,969,887   2,814,181   2,026,948 
CCC Intelligent Solutions Inc. Services: Business Term Loan B Loan 1M USD LIBOR+  2.25%  0.50%  6.88% 9/16/2028  247,500   247,017   244,612 
CCI Buyer, Inc Telecommunications Term Loan Loan 3M USD SOFR+  4.00%  0.75%  8.58% 12/17/2027  245,625   243,880   241,223 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD SOFR+  4.25%  0.50%  8.97% 3/5/2028  1,000,000   951,484   975,000 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+  3.75%  0.75%  8.39% 3/5/2028  982,500   978,899   957,938 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+  5.50%  0.00%  10.13% 9/25/2025  2,400,000   2,390,330   1,605,504 
CDK GLOBAL, INC. High Tech Industries Term Loan B Loan 3M USD SOFR+  4.50%  0.50%  9.08% 7/6/2029  1,000,000   971,508   996,150 
Cengage Learning, Inc. Media: Advertising, Printing & Publishing Term Loan B (6/21) Loan 6M USD LIBOR+  4.75%  1.00%  9.88% 7/14/2026  2,962,500   2,942,124   2,794,171 
CENTURI GROUP, INC. Construction & Building Term Loan B Loan 3M USD LIBOR+  2.50%  0.50%  7.45% 8/27/2028  878,330   871,190   870,100 
CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan 1M USD LIBOR+  2.25%  0.00%  6.88% 3/15/2027  3,887,492   3,883,600   3,208,269 
Charlotte Buyer, Inc. Services: Business Term Loan B Loan 1M USD SOFR+  5.25%  0.00%  9.81% 2/11/2028  1,500,000   1,403,100   1,455,945 
Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  6.39% 4/3/2025  905,031   880,859   898,406 
Churchill Downs Incorporated Hotel, Gaming & Leisure Term Loan B1 (3/21) Loan 1M USD LIBOR+  2.00%  0.00%  6.64% 3/17/2028  491,250   490,382   486,952 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		 
CareerBuilder, LLC Services: Business Term Loan Loan 3M USD LIBOR+ 6.75%  1.00%  11.48% 7/31/2023  5,393,388  5,347,671  3,513,792 
Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan 1M USD LIBOR+ 3.75%  0.00%  8.38% 1/27/2027  1,963,384  1,954,023  1,375,469 
CASTLELAKE AVIATION LLC Aerospace & Defense Term Loan B Loan 1M USD SOFR+ 2.75%  0.50%  7.31% 10/21/2027  1,000,000  992,500  987,080 
CBI BUYER, INC. Consumer goods: Durable Term Loan Loan 1M USD LIBOR+ 3.25%  0.50%  7.88% 1/6/2028  2,969,887  2,814,181  2,026,948 
CCC Intelligent Solutions Inc. Services: Business Term Loan B Loan 1M USD LIBOR+ 2.25%  0.50%  6.88% 9/16/2028  247,500  247,017  244,612 
CCI Buyer, Inc Telecommunications Term Loan Loan 3M USD SOFR+ 4.00%  0.75%  8.58% 12/17/2027  245,625  243,880  241,223 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD SOFR+ 4.25%  0.50%  8.97% 3/5/2028  1,000,000  951,484  975,000 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 3.75%  0.75%  8.39% 3/5/2028  982,500  978,899  957,938 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 5.50%  0.00%  10.13% 9/25/2025  2,400,000  2,390,330  1,605,504 
CDK GLOBAL, INC. High Tech Industries Term Loan B Loan 3M USD SOFR+ 4.50%  0.50%  9.08% 7/6/2029  1,000,000  971,508  996,150 
Cengage Learning, Inc. Media: Advertising, Printing & Publishing Term Loan B (6/21) Loan 6M USD LIBOR+ 4.75%  1.00%  9.88% 7/14/2026  2,962,500  2,942,124  2,794,171 
CENTURI GROUP, INC. Construction & Building Term Loan B Loan 3M USD LIBOR+ 2.50%  0.50%  7.45% 8/27/2028  878,330  871,190  870,100 
CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan 1M USD LIBOR+ 2.25%  0.00%  6.88% 3/15/2027  3,887,492  3,883,600  3,208,269 
Charlotte Buyer, Inc. Services: Business Term Loan B Loan 1M USD SOFR+ 5.25%  0.00%  9.81% 2/11/2028  1,500,000  1,403,100  1,455,945 
Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+ 1.75%  0.00%  6.39% 4/3/2025  905,031  880,859  898,406 
Churchill Downs Incorporated Hotel, Gaming & Leisure Term Loan B1 (3/21) Loan 1M USD LIBOR+ 2.00%  0.00%  6.64% 3/17/2028  491,250  490,382  486,952 
CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing USD Term Loan Loan 1M USD LIBOR+ 3.50%  0.50%  8.13% 5/17/2028  1,979,950  1,892,607  1,785,419 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan 1M USD SOFR+ 2.50%  0.00%  7.23% 2/2/2028  4,912,500  4,910,914  4,865,684 
Clarios Global LP Automotive Term Loan B1 Loan 1M USD LIBOR+ 3.25%  0.00%  7.88% 4/30/2026  1,267,812  1,261,524  1,260,091 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B-1 (11/21) Loan 1M USD SOFR+ 4.50%  0.50%  9.16% 8/9/2026  3,439,962  3,421,651  3,401,262 
CLYDESDALE ACQUISITION HOLDINGS, INC. Containers, Packaging & Glass Term Loan B Loan 1M USD SOFR+ 4.18%  0.50%  8.89% 4/13/2029  1,492,500  1,458,949  1,469,993 
Cole Haan Consumer goods: Non-durable Term Loan B Loan 3M USD LIBOR+ 5.50%  0.00%  10.23% 2/7/2025  875,000  871,486  841,461 
Columbus McKinnon Corporation Capital Equipment Term Loan (4/21) Loan 3M USD LIBOR+ 2.75%  0.50%  7.50% 5/14/2028  449,172  448,339  446,926 
Conduent, Inc. Services: Business Term Loan B Loan 1M USD LIBOR+ 4.25%  0.50%  8.88% 10/16/2028  1,787,985  1,755,247  1,742,177 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number of
Shares		  Cost  Fair
Value		 
CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing USD Term Loan Loan 1M USD LIBOR+  3.50%  0.50%  8.13% 5/17/2028  1,979,950   1,892,607   1,785,419 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan 1M USD SOFR+  2.50%  0.00%  7.23% 2/2/2028  4,912,500   4,910,914   4,865,684 
Clarios Global LP Automotive Term Loan B1 Loan 1M USD LIBOR+  3.25%  0.00%  7.88% 4/30/2026  1,267,812   1,261,524   1,260,091 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B-1 (11/21) Loan 1M USD SOFR+  4.50%  0.50%  9.16% 8/9/2026  3,439,962   3,421,651   3,401,262 
CLYDESDALE ACQUISITION HOLDINGS, INC. Containers, Packaging & Glass Term Loan B Loan 1M USD SOFR+  4.18%  0.50%  8.89% 4/13/2029  1,492,500   1,458,949   1,469,993 
Cole Haan Consumer goods: Non-durable Term Loan B Loan 3M USD LIBOR+  5.50%  0.00%  10.23% 2/7/2025  875,000   871,486   841,461 
Columbus McKinnon Corporation Capital Equipment Term Loan (4/21) Loan 3M USD LIBOR+  2.75%  0.50%  7.50% 5/14/2028  449,172   448,339   446,926 
Conduent, Inc. Services: Business Term Loan B Loan 1M USD LIBOR+  4.25%  0.50%  8.88% 10/16/2028  1,787,985   1,755,247   1,742,177 
Connect Finco SARL Telecommunications Term Loan (1/21) Loan 1M USD SOFR+  3.50%  1.00%  8.14% 12/11/2026  2,917,500   2,816,917   2,863,526 
Consolidated Communications, Inc. Telecommunications Term Loan B Loan 1M USD LIBOR+  3.50%  0.75%  8.19% 10/2/2027  2,714,005   2,520,099   2,435,819 
CORAL-US CO-BORROWER LLC Telecommunications Term Loan B-5 Loan 1M USD LIBOR+  2.25%  0.00%  6.84% 1/31/2028  4,000,000   3,988,733   3,867,160 
Corelogic, Inc. Services: Business Term Loan (4/21) Loan 1M USD LIBOR+  3.50%  0.50%  8.19% 6/2/2028  2,468,750   2,459,383   2,110,164 
Cortes NP Acquisition Corp (Vertiv) Capital Equipment Term Loan 2/21 Loan 1M USD LIBOR+  2.75%  0.00%  7.32% 3/2/2027  1,960,000   1,960,000   1,934,579 
COWEN INC. Banking, Finance, Insurance & Real Estate Term Loan Loan 6M USD LIBOR+  3.25%  0.00%  7.43% 3/24/2028  3,927,406   3,907,308   3,922,496 
Creative Artists Agency, LLC Media: Diversified & Production Term Loan B (02/23) Loan 1M USD SOFR+  3.50%  0.00%  8.06% 11/1/2028  1,600,000   1,588,000   1,595,008 
CROCS INC Consumer goods: Durable Term Loan Loan 6M USD SOFR+  3.50%  0.50%  7.73% 2/20/2029  2,512,500   2,421,039   2,504,133 
Cross Financial Corp Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan 1M USD LIBOR+  4.00%  0.75%  8.69% 9/15/2027  492,500   492,174   489,422 
Crown Subsea Communications Holding, Inc. Construction & Building Term Loan (4/21) Loan 1M USD LIBOR+  4.75%  0.75%  9.32% 4/27/2027  3,404,110   3,377,740   3,340,283 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan 1M USD LIBOR+  2.50%  0.00%  7.09% 4/15/2027  485,000   485,000   435,894 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan 12/22 Loan 1M USD SOFR+  4.50%  0.00%  9.06% 4/15/2027  2,400,032   2,389,363   2,244,030 
CTS Midco, LLC High Tech Industries Term Loan B Loan 3M USD LIBOR+  6.00%  1.00%  10.83% 11/2/2027  1,960,000   1,917,602   1,666,000 
Daseke Inc Transportation: Cargo Term Loan 2/21 Loan 1M USD LIBOR+  4.00%  0.75%  8.64% 3/5/2028  1,473,750   1,468,500   1,468,223 
Dave & Buster’s Inc. Hotel, Gaming & Leisure Term Loan B (04/22) Loan 1M USD SOFR+  5.00%  0.50%  9.75% 6/29/2029  995,000   948,574   997,736 
DCert Buyer, Inc. High Tech Industries Term Loan Loan 6M USD SOFR+  4.00%  0.00%  8.70% 10/16/2026  1,469,773   1,469,773   1,446,257 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B (11/22) Loan 1M USD SOFR+  3.50%  0.50%  8.22% 11/16/2029  5,400,000   5,285,256   5,298,750 
Delta 2 Lux Sarl Hotel, Gaming & Leisure Term Loan B Loan 1M USD SOFR+  3.25%  0.50%  7.87% 1/15/2030  1,000,000   990,424   1,001,750 
DexKo Global, Inc. (Dragon Merger) Automotive Term Loan (9/21) Loan 3M USD LIBOR+  3.75%  0.50%  8.48% 10/4/2028  992,500   989,236   928,980 
DG Investment Intermediate Holdings 2, Inc. Aerospace & Defense Incremental Term Loan (3/22) Loan 1M USD SOFR+  4.75%  0.75%  9.37% 3/31/2028  498,750   479,659   488,152 
Diamond Sports Group, LLC (b) Media: Broadcasting & Subscription Second Lien Term Loan Loan 3M USD SOFR+  3.40%  0.00%  8.03% 8/24/2026  3,374,880   3,017,273   382,306 
Diamond Sports Group, LLC (b) Media: Broadcasting & Subscription 1st Priority Term Loan Loan 6M USD SOFR+  8.00%  1.00%  13.06% 5/25/2026  342,343   333,975   318,951 
DIRECTV FINANCING, LLC Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+  5.00%  0.75%  9.63% 8/2/2027  3,550,000   3,523,794   3,448,754 
DISCOVERY PURCHASER CORPORATION Chemicals, Plastics, & Rubber Term Loan Loan 3M USD SOFR+  4.38%  0.50%  8.96% 10/4/2029  1,500,000   1,385,334   1,433,310 
Dispatch Acquisition Holdings, LLC Environmental Industries Term Loan B (3/21) Loan 3M USD LIBOR+  4.25%  0.75%  8.98% 3/25/2028  492,500   488,806   434,631 
DOMTAR CORPORATION Forest Products & Paper Term Loan 9/21 Loan 1M USD LIBOR+  5.50%  0.75%  10.10% 11/30/2028  1,310,136   1,272,492   1,286,121 
DOTDASH MEREDITH, INC. Media: Advertising, Printing & Publishing Term Loan B Loan 1M USD SOFR+  4.00%  0.50%  8.67% 11/30/2028  1,994,949   1,803,027   1,755,556 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		 
Connect Finco SARL Telecommunications Term Loan (1/21) Loan 1M USD SOFR+ 3.50%  1.00%  8.14% 12/11/2026  2,917,500  2,816,917  2,863,526 
Consolidated Communications, Inc. Telecommunications Term Loan B Loan 1M USD LIBOR+ 3.50%  0.75%  8.19% 10/2/2027  2,714,005  2,520,099  2,435,819 
CORAL-US CO-BORROWER LLC Telecommunications Term Loan B-5 Loan 1M USD LIBOR+ 2.25%  0.00%  6.84% 1/31/2028  4,000,000  3,988,733  3,867,160 
Corelogic, Inc. Services: Business Term Loan (4/21) Loan 1M USD LIBOR+ 3.50%  0.50%  8.19% 6/2/2028  2,468,750  2,459,383  2,110,164 
Cortes NP Acquisition Corp (Vertiv) Capital Equipment Term Loan 2/21 Loan 1M USD LIBOR+ 2.75%  0.00%  7.32% 3/2/2027  1,960,000  1,960,000  1,934,579 
COWEN INC. Banking, Finance, Insurance & Real Estate Term Loan Loan 6M USD LIBOR+ 3.25%  0.00%  7.43% 3/24/2028  3,927,406  3,907,308  3,922,496 
Creative Artists Agency, LLC Media: Diversified & Production Term Loan B (02/23) Loan 1M USD SOFR+ 3.50%  0.00%  8.06% 11/1/2028  1,600,000  1,588,000  1,595,008 
CROCS INC Consumer goods: Durable Term Loan Loan 6M USD SOFR+ 3.50%  0.50%  7.73% 2/20/2029  2,512,500  2,421,039  2,504,133 
Cross Financial Corp Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan 1M USD LIBOR+ 4.00%  0.75%  8.69% 9/15/2027  492,500  492,174  489,422 
Crown Subsea Communications Holding, Inc. Construction & Building Term Loan (4/21) Loan 1M USD LIBOR+ 4.75%  0.75%  9.32% 4/27/2027  3,404,110  3,377,740  3,340,283 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan 1M USD LIBOR+ 2.50%  0.00%  7.09% 4/15/2027  485,000  485,000  435,894 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan 12/22 Loan 1M USD SOFR+ 4.50%  0.00%  9.06% 4/15/2027  2,400,032  2,389,363  2,244,030 
CTS Midco, LLC High Tech Industries Term Loan B Loan 3M USD LIBOR+ 6.00%  1.00%  10.83% 11/2/2027  1,960,000  1,917,602  1,666,000 
Daseke Inc Transportation: Cargo Term Loan 2/21 Loan 1M USD LIBOR+ 4.00%  0.75%  8.64% 3/5/2028  1,473,750  1,468,500  1,468,223 
Dave & Buster’s Inc. Hotel, Gaming & Leisure Term Loan B (04/22) Loan 1M USD SOFR+ 5.00%  0.50%  9.75% 6/29/2029  995,000  948,574  997,736 
DCert Buyer, Inc. High Tech Industries Term Loan Loan 6M USD SOFR+ 4.00%  0.00%  8.70% 10/16/2026  1,469,773  1,469,773  1,446,257 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B (11/22) Loan 1M USD SOFR+ 3.50%  0.50%  8.22% 11/16/2029  5,400,000  5,285,256  5,298,750 
Delta 2 Lux Sarl Hotel, Gaming & Leisure Term Loan B Loan 1M USD SOFR+ 3.25%  0.50%  7.87% 1/15/2030  1,000,000  990,424  1,001,750 
DexKo Global, Inc. (Dragon Merger) Automotive Term Loan (9/21) Loan 3M USD LIBOR+ 3.75%  0.50%  8.48% 10/4/2028  992,500  989,236  928,980 
DG Investment Intermediate Holdings 2, Inc. Aerospace & Defense Incremental Term Loan (3/22) Loan 1M USD SOFR+ 4.75%  0.75%  9.37% 3/31/2028  498,750  479,659  488,152 
Diamond Sports Group, LLC (b) Media: Broadcasting & Subscription Second Lien Term Loan Loan 3M USD SOFR+ 3.40%  0.00%  8.03% 8/24/2026  3,374,880  3,017,273  382,306 
Diamond Sports Group, LLC (b) Media: Broadcasting & Subscription 1st Priority Term Loan Loan 6M USD SOFR+ 8.00%  1.00%  13.06% 5/25/2026  342,343  333,975  318,951 
DIRECTV FINANCING, LLC Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 5.00%  0.75%  9.63% 8/2/2027  3,550,000  3,523,794  3,448,754 
DISCOVERY PURCHASER CORPORATION Chemicals, Plastics, & Rubber Term Loan Loan 3M USD SOFR+ 4.38%  0.50%  8.96% 10/4/2029  1,500,000  1,385,334  1,433,310 
Dispatch Acquisition Holdings, LLC Environmental Industries Term Loan B (3/21) Loan 3M USD LIBOR+ 4.25%  0.75%  8.98% 3/25/2028  492,500  488,806  434,631 
DOMTAR CORPORATION Forest Products & Paper Term Loan 9/21 Loan 1M USD LIBOR+ 5.50%  0.75%  10.10% 11/30/2028  1,310,136  1,272,492  1,286,121 
DOTDASH MEREDITH, INC. Media: Advertising, Printing & Publishing Term Loan B Loan 1M USD SOFR+ 4.00%  0.50%  8.67% 11/30/2028  1,994,949  1,803,027  1,755,556 
DRI HOLDING INC. Media: Advertising, Printing & Publishing Term Loan (12/21) Loan 1M USD LIBOR+ 5.25%  0.50%  9.88% 12/15/2028  3,972,487  3,830,439  3,552,913 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan (2/21) Loan 1M USD LIBOR+ 3.75%  0.00%  8.38% 3/1/2028  6,435,000  6,396,896  6,284,164 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number of
Shares		  Cost  Fair
Value		 
DRI HOLDING INC. Media: Advertising, Printing & Publishing Term Loan (12/21) Loan 1M USD LIBOR+  5.25%  0.50%  9.88% 12/15/2028  3,972,487   3,830,439   3,552,913 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan (2/21) Loan 1M USD LIBOR+  3.75%  0.00%  8.38% 3/1/2028  6,435,000   6,396,896   6,284,164 
DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan 1M USD LIBOR+  2.75%  0.00%  7.38% 8/21/2025  1,612,878   1,609,665   1,602,798 
DTZ U.S. Borrower, LLC Construction & Building Term Loan (01/23) Loan 1M USD SOFR+  3.25%  0.00%  7.97% 1/31/2030  2,034,413   2,031,025   2,021,698 
EAB Global, Inc. Services: Business Term Loan (08/21) Loan 1M USD LIBOR+  3.50%  0.50%  8.13% 8/16/2028  990,000   985,965   969,586 
Echo Global Logistics, Inc. Services: Business Term Loan Loan 1M USD LIBOR+  3.50%  0.50%  8.13% 11/23/2028  1,985,000   1,981,077   1,916,776 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan 1M USD LIBOR+  3.50%  0.75%  8.13% 4/7/2028  2,188,547   2,182,686   2,129,281 
Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan 1M USD LIBOR+  4.25%  0.00%  8.88% 6/26/2025  1,888,404   1,888,404   1,719,638 
ELECTRON BIDCO INC. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+  3.00%  0.50%  7.63% 11/1/2028  496,250   494,396   491,208 
ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan 1M USD LIBOR+  6.50%  0.00%  11.13% 12/14/2025  2,175,269   2,121,627   2,169,831 
Embecta Corp Healthcare & Pharmaceuticals Term Loan B Loan 6M USD SOFR+  3.00%  0.50%  7.79% 3/30/2029  614,918   611,634   604,735 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan (3/21) Loan Prime  6.00%  0.75%  13.75% 3/27/2028  2,335,285   2,328,380   1,839,037 
Endure Digital, Inc. High Tech Industries Term Loan B Loan 1M USD LIBOR+  3.50%  0.75%  8.07% 2/10/2028  2,462,500   2,453,593   2,276,581 
Entain Holdings (Gibraltar) Limited Hotel, Gaming & Leisure Term Loan B (10/22) Loan 3M USD SOFR+  3.50%  0.50%  8.18% 10/30/2029  1,000,000   987,635   999,060 
Envision Healthcare Corporation Healthcare & Pharmaceuticals Term Loan B (06/18) Loan 3M USD LIBOR+  3.75%  0.00%  8.48% 10/10/2025  4,784,383   4,782,311   1,202,076 
EOS U.S. FINCO LLC Transportation: Cargo Term Loan Loan 3M USD SOFR+  6.00%  0.50%  10.60% 8/3/2029  1,000,000   923,495   986,250 
Equiniti Group PLC Services: Business Term Loan B Loan 6M USD SOFR+  4.50%  0.50%  9.54% 12/11/2028  990,000   981,797   990,624 
EyeCare Partners, LLC Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  3.75%  0.00%  8.48% 2/18/2027  1,948,081   1,948,081   1,621,174 
Finco I LLC Banking, Finance, Insurance & Real Estate Term Loan B (9/20) Loan 1M USD LIBOR+  2.50%  0.00%  7.13% 6/27/2025  2,830,950   2,826,805   2,830,950 
First Brands Group, LLC Automotive 1st Lien Term Loan (3/21) Loan 6M USD SOFR+  5.00%  1.00%  10.25% 3/30/2027  4,912,500   4,854,265   4,754,367 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan 3M USD LIBOR+  2.50%  0.00%  7.23% 2/1/2027  5,146,145   5,133,892   5,055,007 
First Student Bidco Inc. Transportation: Consumer Term Loan B Loan 3M USD LIBOR+  3.00%  0.50%  7.73% 7/21/2028  723,088   718,928   689,255 
First Student Bidco Inc. Transportation: Consumer Term Loan C Loan 3M USD LIBOR+  3.00%  0.50%  7.73% 7/21/2028  269,608   268,052   256,993 
Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan 3M USD SOFR+  3.25%  1.00%  8.08% 4/18/2025  1,330,058   1,326,810   1,268,211 
Flutter Financing B.V. Hotel, Gaming & Leisure Term Loan Loan 3M USD LIBOR+  2.25%  0.00%  6.98% 7/21/2026  1,975,000   1,972,044   1,971,643 
Flutter Financing B.V. Hotel, Gaming & Leisure Third Amendment 2028-B Term Loan Loan 3M USD SOFR+  3.25%  0.50%  8.09% 7/21/2028  748,125   732,248   747,848 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD SOFR+  3.25%  0.50%  7.87% 6/30/2028  1,487,298   1,470,684   1,477,765 
Franchise Group, Inc. Services: Consumer First Out Term Loan Loan 3M USD LIBOR+  4.75%  0.75%  9.56% 3/10/2026  799,104   793,938   760,148 
Franchise Group, Inc. Services: Consumer Term Loan B Loan 3M USD SOFR+  4.75%  0.75%  9.70% 3/10/2026  3,000,000   2,852,614   2,857,500 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  2.25%  0.00%  6.94% 8/1/2025  4,308,730   4,296,025   4,303,344 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan 1M USD LIBOR+  2.25%  0.00%  6.88% 1/29/2027  1,950,000   1,948,124   1,915,524 
Garrett LX III S.a r.l. Automotive Dollar Term Loan Loan 3M USD LIBOR+  3.25%  0.50%  8.08% 4/30/2028  1,481,250   1,475,822   1,460,261 
Gates Global LLC Automotive Term Loan (11/22) Loan 1M USD SOFR+  3.50%  0.50%  8.12% 11/15/2029  249,375   242,119   249,121 
Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan 3M USD LIBOR+  3.00%  0.50%  7.83% 12/31/2027  2,289,884   2,276,592   2,281,297 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		 
DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan 1M USD LIBOR+ 2.75%  0.00%  7.38% 8/21/2025  1,612,878  1,609,665  1,602,798 
DTZ U.S. Borrower, LLC Construction & Building Term Loan (01/23) Loan 1M USD SOFR+ 3.25%  0.00%  7.97% 1/31/2030  2,034,413  2,031,025  2,021,698 
EAB Global, Inc. Services: Business Term Loan (08/21) Loan 1M USD LIBOR+ 3.50%  0.50%  8.13% 8/16/2028  990,000  985,965  969,586 
Echo Global Logistics, Inc. Services: Business Term Loan Loan 1M USD LIBOR+ 3.50%  0.50%  8.13% 11/23/2028  1,985,000  1,981,077  1,916,776 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan 1M USD LIBOR+ 3.50%  0.75%  8.13% 4/7/2028  2,188,547  2,182,686  2,129,281 
Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan 1M USD LIBOR+ 4.25%  0.00%  8.88% 6/26/2025  1,888,404  1,888,404  1,719,638 
ELECTRON BIDCO INC. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 3.00%  0.50%  7.63% 11/1/2028  496,250  494,396  491,208 
ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan 1M USD LIBOR+ 6.50%  0.00%  11.13% 12/14/2025  2,175,269  2,121,627  2,169,831 
Embecta Corp Healthcare & Pharmaceuticals Term Loan B Loan 6M USD SOFR+ 3.00%  0.50%  7.79% 3/30/2029  614,918  611,634  604,735 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan (3/21) Loan Prime 6.00%  0.75%  13.75% 3/27/2028  2,335,285  2,328,380  1,839,037 
Endure Digital, Inc. High Tech Industries Term Loan B Loan 1M USD LIBOR+ 3.50%  0.75%  8.07% 2/10/2028  2,462,500  2,453,593  2,276,581 
Entain Holdings (Gibraltar) Limited Hotel, Gaming & Leisure Term Loan B (10/22) Loan 3M USD SOFR+ 3.50%  0.50%  8.18% 10/30/2029  1,000,000  987,635  999,060 
Envision Healthcare Corporation Healthcare & Pharmaceuticals Term Loan B (06/18) Loan 3M USD LIBOR+ 3.75%  0.00%  8.48% 10/10/2025  4,784,383  4,782,311  1,202,076 
EOS U.S. FINCO LLC Transportation: Cargo Term Loan Loan 3M USD SOFR+ 6.00%  0.50%  10.60% 8/3/2029  1,000,000  923,495  986,250 
Equiniti Group PLC Services: Business Term Loan B Loan 6M USD SOFR+ 4.50%  0.50%  9.54% 12/11/2028  990,000  981,797  990,624 
EyeCare Partners, LLC Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 3.75%  0.00%  8.48% 2/18/2027  1,948,081  1,948,081  1,621,174 
Finco I LLC Banking, Finance, Insurance & Real Estate Term Loan B (9/20) Loan 1M USD LIBOR+ 2.50%  0.00%  7.13% 6/27/2025  2,830,950  2,826,805  2,830,950 
First Brands Group, LLC Automotive 1st Lien Term Loan (3/21) Loan 6M USD SOFR+ 5.00%  1.00%  10.25% 3/30/2027  4,912,500  4,854,265  4,754,367 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number of
Shares		  Cost  Fair
Value		 
Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan 3M USD LIBOR+  2.00%  0.00%  6.73% 12/30/2026  1,458,750   1,454,820   1,453,892 
GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.50%  0.00%  2.96% 8/27/2025  3,072,992   2,734,560   3,053,141 
Global Tel*Link Corporation Telecommunications Term Loan B Loan 3M USD SOFR+  4.25%  0.00%  9.08% 11/29/2025  4,897,634   4,753,219   4,342,830 
Go Daddy Operating Company, LLC High Tech Industries Term Loan 2/21 Loan 1M USD LIBOR+  2.00%  0.00%  6.63% 8/10/2027  1,959,799   1,959,799   1,950,255 
GOLDEN WEST PACKAGING GROUP LLC Forest Products & Paper Term Loan (11/21) Loan 1M USD LIBOR+  5.25%  0.75%  9.88% 12/1/2027  1,962,500   1,946,411   1,903,625 
Graham Packaging Co Inc Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD LIBOR+  3.00%  0.75%  7.63% 8/7/2027  962,517   957,931   956,501 
Great Outdoors Group, LLC Retail Term Loan B2 Loan 1M USD LIBOR+  3.75%  0.75%  8.38% 3/6/2028  980,094   976,551   964,471 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+  3.25%  0.00%  8.20% 4/12/2024  2,844,231   2,836,329   2,789,707 
Griffon Corporation Consumer goods: Durable Term Loan B Loan 1M USD SOFR+  2.50%  0.50%  7.20% 1/24/2029  154,375   154,051   152,959 
Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Amendment 5 Term Loan Loan 1M USD LIBOR+  2.50%  0.50%  7.13% 2/24/2028  2,836,805   2,834,453   2,808,437 
Groupe Solmax Inc. Environmental Industries Term Loan (6/21) Loan 3M USD LIBOR+  4.75%  0.75%  9.48% 5/27/2028  1,994,937   1,625,873   1,720,633 
Harbor Freight Tools USA, Inc. Retail Term Loan B (06/21) Loan 1M USD LIBOR+  2.75%  0.50%  7.38% 10/19/2027  3,438,442   3,420,645   3,324,355 
Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan 1M USD LIBOR+  3.75%  1.00%  8.38% 6/3/2024  209,702   209,702   208,332 
Hillman Group Inc. (The) (New) Consumer goods: Durable Term Loan B-1 (2/21) Loan 1M USD LIBOR+  2.75%  0.50%  7.38% 7/14/2028  3,479,167   3,473,274   3,441,105 
Hillman Group Inc. (The) (New) (a) Consumer goods: Durable Delayed Draw Term Loan (2/21) Loan 1M USD LIBOR+  2.75%  0.50%  7.38% 7/14/2028  66,667   66,667   57,444 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan 1M USD LIBOR+  2.50%  0.00%  7.13% 8/18/2025  3,510,000   3,504,423   3,452,225 
Holley Purchaser, Inc Automotive Term Loan (11/21) Loan 3M USD LIBOR+  3.75%  0.75%  8.48% 11/17/2028  2,317,577   2,309,047   1,888,825 
Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 1M USD LIBOR+  3.25%  0.75%  7.94% 11/12/2027  2,152,191   2,144,311   2,117,218 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan (3/21) Loan 1M USD SOFR+  3.00%  0.00%  7.73% 3/17/2028  5,895,000   5,850,826   5,619,173 
Idera, Inc. High Tech Industries Term Loan (02/21) Loan 3M USD LIBOR+  3.75%  0.75%  8.51% 3/2/2028  4,811,111   4,802,585   4,635,698 
IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/21) Loan 1M USD LIBOR+  3.50%  0.50%  8.13% 11/1/2028  1,980,000   1,972,160   1,947,825 
INDY US BIDCO, LLC Services: Business Term Loan (11/21) Loan 1M USD LIBOR+  3.75%  0.00%  8.38% 3/6/2028  2,215,703   2,215,226   1,888,200 
Ineos US Finance LLC Chemicals, Plastics, & Rubber Term Loan C Loan 1M USD SOFR+  3.75%  0.00%  8.42% 2/9/2030  1,000,000   990,000   991,560 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber Term Loan (1/21) Loan 1M USD LIBOR+  2.75%  0.50%  7.38% 1/29/2026  1,979,950   1,929,143   1,967,080 
Informatica Inc. High Tech Industries Term Loan B (10/21) Loan 1M USD LIBOR+  2.75%  0.00%  7.44% 10/27/2028  496,250   495,896   494,761 
Ingram Micro Inc. Wholesale Term Loan Loan 3M USD LIBOR+  3.50%  0.50%  8.23% 6/30/2028  1,477,500   1,465,872   1,468,266 
Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan 1M USD LIBOR+  4.00%  1.00%  8.63% 5/1/2024  3,350,673   3,327,770   3,270,055 
Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan 1M USD LIBOR+  3.25%  0.00%  7.88% 2/4/2027  486,250   484,966   483,007 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable Term Loan 4/21 Loan 3M USD LIBOR+  5.00%  0.75%  9.95% 4/7/2028  4,027,667   4,010,741   2,154,802 
IRB Holding Corporation Beverage, Food & Tobacco Term Loan B3 Loan 1M USD SOFR+  3.00%  0.75%  7.57% 12/14/2027  500,000   495,150   493,125 
IRB Holding T/L B (1/22) Beverage, Food & Tobacco Term Loan B Loan 1M USD SOFR+  3.00%  0.75%  7.69% 12/15/2027  500,000   495,150   493,125 
Isagenix International, LLC (b) Beverage, Food & Tobacco Term Loan Loan 3M USD LIBOR+  7.75%  1.00%  11.35% 6/14/2025  2,330,036   2,311,947   814,068 
J Jill Group, Inc Retail Priming Term Loan Loan 3M USD LIBOR+  5.00%  1.00%  9.83% 5/8/2024  1,553,698   1,553,299   1,464,361 
Jane Street Group Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 1M USD LIBOR+  2.75%  0.00%  7.38% 1/31/2028  3,920,000   3,917,671   3,897,970 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan 3M USD LIBOR+ 2.50%  0.00%  7.23% 2/1/2027  5,146,145  5,133,892  5,055,007 
First Student Bidco Inc. Transportation: Consumer Term Loan B Loan 3M USD LIBOR+ 3.00%  0.50%  7.73% 7/21/2028  723,088  718,928  689,255 
First Student Bidco Inc. Transportation: Consumer Term Loan C Loan 3M USD LIBOR+ 3.00%  0.50%  7.73% 7/21/2028  269,608  268,052  256,993 
Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan 3M USD SOFR+ 3.25%  1.00%  8.08% 4/18/2025  1,330,058  1,326,810  1,268,211 
Flutter Financing B.V. Hotel, Gaming & Leisure Term Loan Loan 3M USD LIBOR+ 2.25%  0.00%  6.98% 7/21/2026  1,975,000  1,972,044  1,971,643 
Flutter Financing B.V. Hotel, Gaming & Leisure Third Amendment 2028-B Term Loan Loan 3M USD SOFR+ 3.25%  0.50%  8.09% 7/21/2028  748,125  732,248  747,848 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD SOFR+ 3.25%  0.50%  7.87% 6/30/2028  1,487,298  1,470,684  1,477,765 
Franchise Group, Inc. Services: Consumer First Out Term Loan Loan 3M USD LIBOR+ 4.75%  0.75%  9.56% 3/10/2026  799,104  793,938  760,148 
Franchise Group, Inc. Services: Consumer Term Loan B Loan 3M USD SOFR+ 4.75%  0.75%  9.70% 3/10/2026  3,000,000  2,852,614  2,857,500 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 2.25%  0.00%  6.94% 8/1/2025  4,308,730  4,296,025  4,303,344 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan 1M USD LIBOR+ 2.25%  0.00%  6.88% 1/29/2027  1,950,000  1,948,124  1,915,524 
Garrett LX III S.a r.l. Automotive Dollar Term Loan Loan 3M USD LIBOR+ 3.25%  0.50%  8.08% 4/30/2028  1,481,250  1,475,822  1,460,261 
Gates Global LLC Automotive Term Loan (11/22) Loan 1M USD SOFR+ 3.50%  0.50%  8.12% 11/15/2029  249,375  242,119  249,121 
Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan 3M USD LIBOR+ 3.00%  0.50%  7.83% 12/31/2027  2,289,884  2,276,592  2,281,297 
Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan 3M USD LIBOR+ 2.00%  0.00%  6.73% 12/30/2026  1,458,750  1,454,820  1,453,892 
GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.50%  0.00%  2.96% 8/27/2025  3,072,992  2,734,560  3,053,141 
Global Tel*Link Corporation Telecommunications Term Loan B Loan 3M USD SOFR+ 4.25%  0.00%  9.08% 11/29/2025  4,897,634  4,753,219  4,342,830 
Go Daddy Operating Company, LLC High Tech Industries Term Loan 2/21 Loan 1M USD LIBOR+ 2.00%  0.00%  6.63% 8/10/2027  1,959,799  1,959,799  1,950,255 
GOLDEN WEST PACKAGING GROUP LLC Forest Products & Paper Term Loan (11/21) Loan 1M USD LIBOR+ 5.25%  0.75%  9.88% 12/1/2027  1,962,500  1,946,411  1,903,625 
Graham Packaging Co Inc Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD LIBOR+ 3.00%  0.75%  7.63% 8/7/2027  962,517  957,931  956,501 
Great Outdoors Group, LLC Retail Term Loan B2 Loan 1M USD LIBOR+ 3.75%  0.75%  8.38% 3/6/2028  980,094  976,551  964,471 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 3.25%  0.00%  8.20% 4/12/2024  2,844,231  2,836,329  2,789,707 
Griffon Corporation Consumer goods: Durable Term Loan B Loan 1M USD SOFR+ 2.50%  0.50%  7.20% 1/24/2029  154,375  154,051  152,959 
Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Amendment 5 Term Loan Loan 1M USD LIBOR+ 2.50%  0.50%  7.13% 2/24/2028  2,836,805  2,834,453  2,808,437 
Groupe Solmax Inc. Environmental Industries Term Loan (6/21) Loan 3M USD LIBOR+ 4.75%  0.75%  9.48% 5/27/2028  1,994,937  1,625,873  1,720,633 
Harbor Freight Tools USA, Inc. Retail Term Loan B (06/21) Loan 1M USD LIBOR+ 2.75%  0.50%  7.38% 10/19/2027  3,438,442  3,420,645  3,324,355 
Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan 1M USD LIBOR+ 3.75%  1.00%  8.38% 6/3/2024  209,702  209,702  208,332 
Hillman Group Inc. (The) (New) Consumer goods: Durable Term Loan B-1 (2/21) Loan 1M USD LIBOR+ 2.75%  0.50%  7.38% 7/14/2028  3,479,167  3,473,274  3,441,105 
Hillman Group Inc. (The) (New) (a) Consumer goods: Durable Delayed Draw Term Loan (2/21) Loan 1M USD LIBOR+ 2.75%  0.50%  7.38% 7/14/2028  66,667  66,667  57,444 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan 1M USD LIBOR+ 2.50%  0.00%  7.13% 8/18/2025  3,510,000  3,504,423  3,452,225 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number of
Shares		  Cost  Fair
Value		 
Journey Personal Care Corp. Consumer goods: Non-durable Term Loan B Loan 3M USD LIBOR+  4.25%  0.75%  8.98% 3/1/2028  985,000   981,310   731,569 
JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+  5.50%  1.00%  10.33% 11/15/2025  3,884,160   3,863,896   2,469,199 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Term Loan (1/21) (USD) Loan 6M USD SOFR+  4.75%  0.50%  10.13% 2/12/2026  1,473,750   1,469,605   1,354,936 
Kodiak BP, LLC Construction & Building Term Loan Loan 3M USD LIBOR+  3.25%  0.75%  7.98% 3/13/2028  491,242   490,111   472,083 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan 1M USD LIBOR+  3.50%  0.50%  8.13% 9/1/2027  491,288   482,835   482,690 
Lakeland Tours, LLC Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan Fixed  0.00%  0.00%  13.25% 9/27/2027  990,775   383,373   644,004 
Lealand Finance Company B.V. Energy: Oil & Gas Exit Term Loan Loan 1M USD LIBOR+  1.00%  0.00%  5.63% 6/30/2025  345,078   345,078   221,426 
LHS BORROWER, LLC Construction & Building Term Loan (02/22) Loan 1M USD SOFR+  4.75%  0.50%  9.47% 2/16/2029  997,487   815,989   817,940 
Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan 1M USD SOFR+  3.50%  1.00%  8.23% 2/28/2025  2,616,496   2,602,628   2,295,975 
Liquid Tech Solutions Holdings, LLC Services: Business Term Loan Loan 6M USD LIBOR+  4.75%  0.00%  8.92% 3/17/2028  985,000   982,312   940,675 
LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan 1M USD LIBOR+  4.75%  0.00%  9.38% 8/31/2027  3,920,000   3,868,809   2,137,145 
LOYALTY VENTURES INC. (b) Services: Business Term Loan B Loan Prime  3.50%  0.50%  11.25% 11/3/2027  3,089,630   3,074,278   926,889 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan 1M USD LIBOR+  1.75%  0.00%  6.32% 11/11/2026  1,207,856   1,206,501   1,203,701 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan (01/23) Loan 1M USD SOFR+  4.25%  0.50%  8.97% 10/14/2028  500,000   486,534   489,165 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD SOFR+  3.50%  0.50%  8.23% 10/16/2028  248,125   247,170   241,508 
LSF9 Atlantis Holdings, LLC (A Wireless) Retail Term Loan B Loan 3M USD SOFR+  7.25%  0.75%  11.83% 3/29/2029  2,962,500   2,872,908   2,888,438 
MAGNITE, INC. Services: Business Term Loan Loan 1M USD LIBOR+  5.00%  0.75%  9.63% 4/28/2028  2,964,950   2,901,156   2,826,575 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan 1M USD LIBOR+  1.75%  0.00%  6.38% 8/29/2025  1,317,074   1,317,074   1,308,842 
Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan 3M USD LIBOR+  1.75%  0.00%  6.49% 2/15/2027  250,000   249,658   247,500 
Maxar Technologies Inc Aerospace & Defense Term Loan (6/22) Loan 1M USD SOFR+  4.25%  0.50%  8.97% 6/14/2029  1,994,987   1,926,722   1,997,641 
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan B (02/23) Loan 3M USD SOFR+  5.00%  0.00%  8.81% 2/27/2028  3,450,000   3,346,500   3,363,750 
McGraw-Hill Education, Inc. Media: Advertising, Printing & Publishing Term Loan (07/21) Loan 3M USD LIBOR+  4.75%  0.50%  9.70% 7/28/2028  1,975,000   1,957,770   1,894,025 
MedAssets Software Inter Hldg, Inc. High Tech Industries Term Loan (11/21) (USD) Loan 1M USD LIBOR+  4.00%  0.50%  8.63% 12/18/2028  496,250   493,413   462,753 
Mermaid Bidco Inc. High Tech Industries Term Loan B2 Loan 3M USD LIBOR+  3.50%  0.75%  8.30% 12/22/2027  983,769   981,224   964,093 
Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan 3M USD LIBOR+  2.50%  0.00%  7.23% 3/1/2026  2,980,405   2,970,477   2,968,871 
Michaels Companies Inc Retail Term Loan B (Magic Mergeco) Loan 3M USD LIBOR+  4.25%  0.75%  8.98% 4/8/2028  2,467,450   2,452,022   2,254,632 
MPH Acquisition Holdings LLC (Multiplan) Services: Business Term Loan B (08/21) Loan 3M USD LIBOR+  4.25%  0.50%  9.20% 9/1/2028  2,992,424   2,725,679   2,509,148 
MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental) Loan 3M USD LIBOR+  3.75%  0.00%  8.48% 9/30/2024  2,842,097   2,823,791   2,778,150 
NAB Holdings, LLC (North American Bancard) Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan 3M USD SOFR+  3.00%  0.50%  7.73% 11/23/2028  2,970,000   2,963,897   2,927,678 
Napa Management Services Corp Healthcare & Pharmaceuticals Term Loan B (02/22) Loan 1M USD SOFR+  5.25%  0.75%  9.95% 2/22/2029  3,000,000   2,407,500   2,285,640 
Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+  3.50%  0.00%  8.19% 11/14/2025  3,436,481   3,419,311   3,395,690 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan 2/21 Loan 1M USD SOFR+  3.75%  0.75%  8.47% 3/2/2028  2,736,043   2,727,702   2,108,477 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C 2/21 Loan 3M USD LIBOR+  3.75%  0.75%  8.48% 3/2/2028  87,464   87,137   67,402 
NEW ERA CAP, LLC Consumer goods: Durable Term Loan (01/22) Loan 3M USD LIBOR+  6.00%  0.75%  10.82% 7/13/2027  3,628,164   3,627,422   3,483,037 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		 
Holley Purchaser, Inc Automotive Term Loan (11/21) Loan 3M USD LIBOR+ 3.75%  0.75%  8.48% 11/17/2028  2,317,577  2,309,047  1,888,825 
Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 1M USD LIBOR+ 3.25%  0.75%  7.94% 11/12/2027  2,152,191  2,144,311  2,117,218 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan (3/21) Loan 1M USD SOFR+ 3.00%  0.00%  7.73% 3/17/2028  5,895,000  5,850,826  5,619,173 
Idera, Inc. High Tech Industries Term Loan (02/21) Loan 3M USD LIBOR+ 3.75%  0.75%  8.51% 3/2/2028  4,811,111  4,802,585  4,635,698 
IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/21) Loan 1M USD LIBOR+ 3.50%  0.50%  8.13% 11/1/2028  1,980,000  1,972,160  1,947,825 
INDY US BIDCO, LLC Services: Business Term Loan (11/21) Loan 1M USD LIBOR+ 3.75%  0.00%  8.38% 3/6/2028  2,215,703  2,215,226  1,888,200 
Ineos US Finance LLC Chemicals, Plastics, & Rubber Term Loan C Loan 1M USD SOFR+ 3.75%  0.00%  8.42% 2/9/2030  1,000,000  990,000  991,560 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber Term Loan (1/21) Loan 1M USD LIBOR+ 2.75%  0.50%  7.38% 1/29/2026  1,979,950  1,929,143  1,967,080 
Informatica Inc. High Tech Industries Term Loan B (10/21) Loan 1M USD LIBOR+ 2.75%  0.00%  7.44% 10/27/2028  496,250  495,896  494,761 
Ingram Micro Inc. Wholesale Term Loan Loan 3M USD LIBOR+ 3.50%  0.50%  8.23% 6/30/2028  1,477,500  1,465,872  1,468,266 
Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan 1M USD LIBOR+ 4.00%  1.00%  8.63% 5/1/2024  3,350,673  3,327,770  3,270,055 
Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan 1M USD LIBOR+ 3.25%  0.00%  7.88% 2/4/2027  486,250  484,966  483,007 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable Term Loan 4/21 Loan 3M USD LIBOR+ 5.00%  0.75%  9.95% 4/7/2028  4,027,667  4,010,741  2,154,802 
IRB Holding Corporation Beverage, Food & Tobacco Term Loan B3 Loan 1M USD SOFR+ 3.00%  0.75%  7.57% 12/14/2027  500,000  495,150  493,125 
IRB Holding T/L B (1/22) Beverage, Food & Tobacco Term Loan B Loan 1M USD SOFR+ 3.00%  0.75%  7.69% 12/15/2027  500,000  495,150  493,125 
Isagenix International, LLC (b) Beverage, Food & Tobacco Term Loan Loan 3M USD LIBOR+ 7.75%  1.00%  11.35% 6/14/2025  2,330,036  2,311,947  814,068 
J Jill Group, Inc Retail Priming Term Loan Loan 3M USD LIBOR+ 5.00%  1.00%  9.83% 5/8/2024  1,553,698  1,553,299  1,464,361 
Jane Street Group Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 1M USD LIBOR+ 2.75%  0.00%  7.38% 1/31/2028  3,920,000  3,917,671  3,897,970 
Journey Personal Care Corp. Consumer goods: Non-durable Term Loan B Loan 3M USD LIBOR+ 4.25%  0.75%  8.98% 3/1/2028  985,000  981,310  731,569 
JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+ 5.50%  1.00%  10.33% 11/15/2025  3,884,160  3,863,896  2,469,199 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Term Loan (1/21) (USD) Loan 6M USD SOFR+ 4.75%  0.50%  10.13% 2/12/2026  1,473,750  1,469,605  1,354,936 
Kodiak BP, LLC Construction & Building Term Loan Loan 3M USD LIBOR+ 3.25%  0.75%  7.98% 3/13/2028  491,242  490,111  472,083 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan 1M USD LIBOR+ 3.50%  0.50%  8.13% 9/1/2027  491,288  482,835  482,690 
Lakeland Tours, LLC Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan Fixed 0.00%  0.00%  13.25% 9/27/2027  990,775  383,373  644,004 
Lealand Finance Company B.V. Energy: Oil & Gas Exit Term Loan Loan 1M USD LIBOR+ 1.00%  0.00%  5.63% 6/30/2025  345,078  345,078  221,426 
LHS BORROWER, LLC Construction & Building Term Loan (02/22) Loan 1M USD SOFR+ 4.75%  0.50%  9.47% 2/16/2029  997,487  815,989  817,940 
Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan 1M USD SOFR+ 3.50%  1.00%  8.23% 2/28/2025  2,616,496  2,602,628  2,295,975 
Liquid Tech Solutions Holdings, LLC Services: Business Term Loan Loan 6M USD LIBOR+ 4.75%  0.00%  8.92% 3/17/2028  985,000  982,312  940,675 
LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan 1M USD LIBOR+ 4.75%  0.00%  9.38% 8/31/2027  3,920,000  3,868,809  2,137,145 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number of
Shares		  Cost  Fair
Value		 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  7.13% 9/18/2026  657,625   652,850   655,745 
Next Level Apparel, Inc. Retail Term Loan Loan 3M USD LIBOR+  5.50%  1.00%  10.33% 8/9/2024  1,675,340   1,670,519   1,373,779 
NortonLifeLock Inc. High Tech Industries Term Loan B Loan 1M USD SOFR+  2.00%  0.50%  6.72% 9/12/2029  1,398,374   1,392,077   1,382,391 
Novae LLC Automotive Term Loan B Loan 3M USD SOFR+  5.00%  0.75%  9.82% 12/22/2028  1,985,000   1,972,048   1,692,213 
Nuvei Technologies Corp. High Tech Industries US Term Loan Loan 1M USD LIBOR+  2.50%  0.50%  7.13% 9/29/2025  2,216,250   2,213,211   2,210,709 
Olaplex, Inc. Consumer goods: Non-durable Term Loan (2/22) Loan 1M USD SOFR+  3.50%  0.50%  8.20% 2/23/2029  2,492,500   2,386,817   2,224,556 
Open Text Corporation High Tech Industries Term Loan B Loan 1M USD SOFR+  3.50%  0.50%  8.22% 8/24/2029  1,500,000   1,455,000   1,496,955 
Organon & Co. Healthcare & Pharmaceuticals Term Loan USD Loan 3M USD LIBOR+  3.00%  0.50%  7.75% 6/2/2028  2,327,083   2,318,310   2,297,995 
Pacific Gas & Electric Utilities: Electric Term Loan Loan 1M USD LIBOR+  3.00%  0.50%  7.69% 6/18/2025  1,464,944   1,460,891   1,457,619 
PACTIV EVERGREEN GROUP HOLDINGS INC. Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+  3.25%  0.50%  7.88% 9/20/2028  987,500   983,571   981,950 
Padagis LLC Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  4.75%  0.50%  9.54% 7/6/2028  941,176   933,570   864,122 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Term Loan 1/21 Loan 3M USD LIBOR+  4.25%  0.50%  9.08% 1/7/2028  492,500   489,882   461,719 
PAR PETROLEUM LLC Energy: Oil & Gas Term Loan 2/23 Loan 1M USD SOFR+  4.25%  0.50%  8.92% 2/13/2030  1,500,000   1,477,500   1,479,375 
PATAGONIA HOLDCO LLC Telecommunications Term Loan B Loan 3M USD SOFR+  5.75%  0.50%  10.47% 8/1/2029  1,995,000   1,653,635   1,700,738 
Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan 1M USD LIBOR+  3.75%  0.00%  8.38% 3/30/2027  486,509   479,333   424,630 
PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  7.13% 5/29/2026  809,038   806,994   807,396 
PEARLS (Netherlands) Bidco B.V. Chemicals, Plastics, & Rubber USD Term Loan (02/22) Loan 3M USD SOFR+  3.75%  0.50%  8.43% 2/28/2029  992,500   990,539   975,131 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC Healthcare & Pharmaceuticals Term Loan (12/22) Loan 1M USD LIBOR+  3.25%  0.50%  7.88% 12/29/2028  1,292,862   1,287,663   1,272,396 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (12/21) Loan 1M USD LIBOR+  3.25%  0.50%  7.88% 12/29/2028  147,287   147,287   144,174 
Penn National Gaming, Inc Hotel, Gaming & Leisure Term Loan B Loan 1M USD SOFR+  2.75%  0.50%  7.47% 5/3/2029  995,000   990,530   990,851 
Peraton Corp. Aerospace & Defense Term Loan B Loan 1M USD LIBOR+  3.75%  0.75%  8.38% 2/1/2028  5,306,577   5,291,284   5,249,372 
PHYSICIAN PARTNERS, LLC Healthcare & Pharmaceuticals Term Loan Loan 1M USD SOFR+  4.00%  0.50%  8.72% 12/23/2028  1,985,000   1,967,896   1,900,638 
Pike Corporation Construction & Building Term Loan (8/22) Loan 1M USD SOFR+  3.50%  0.00%  8.12% 1/21/2028  498,750   487,274   497,294 
Pitney Bowes Inc Services: Business Term Loan B Loan 1M USD SOFR+  4.00%  0.00%  8.73% 3/17/2028  3,939,924   3,914,651   3,789,734 
Plastipak Holdings Inc. Containers, Packaging & Glass Term Loan B (11/21) Loan 1M USD LIBOR+  2.50%  0.50%  7.13% 12/1/2028  1,921,176   1,913,386   1,911,974 
Playtika Holding Corp. High Tech Industries Term Loan B (3/21) Loan 1M USD LIBOR+  2.75%  0.00%  7.38% 3/13/2028  4,421,250   4,414,119   4,370,804 
PMHC II, INC. Chemicals, Plastics, & Rubber Term Loan (02/22) Loan 3M USD SOFR+  4.25%  0.50%  9.08% 4/21/2029  1,995,000   1,986,056   1,710,912 
PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan 3M USD LIBOR+  3.00%  0.75%  7.75% 12/29/2027  491,250   489,531   487,566 
Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+  4.75%  0.75%  9.38% 2/12/2028  5,403,750   5,359,857   5,025,488 
Pre-Paid Legal Services, Inc. Services: Consumer Term Loan (12/21) Loan 1M USD LIBOR+  3.75%  0.50%  8.38% 12/15/2028  2,977,500   2,956,393   2,929,116 
Presidio, Inc. Services: Business Term Loan B (1/20) Loan 3M USD SOFR+  3.50%  0.00%  8.28% 1/22/2027  487,500   486,909   485,267 
Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan 3M USD LIBOR+  2.75%  0.75%  7.52% 9/23/2026  3,520,468   3,520,468   3,511,667 
PRIORITY HOLDINGS, LLC Services: Consumer Term Loan Loan 3M USD LIBOR+  5.75%  1.00%  10.70% 4/27/2027  2,955,000   2,932,371   2,936,531 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		 
LOYALTY VENTURES INC. (b) Services: Business Term Loan B Loan Prime 3.50%  0.50%  11.25% 11/3/2027  3,089,630  3,074,278  926,889 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan 1M USD LIBOR+ 1.75%  0.00%  6.32% 11/11/2026  1,207,856  1,206,501  1,203,701 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan (01/23) Loan 1M USD SOFR+ 4.25%  0.50%  8.97% 10/14/2028  500,000  486,534  489,165 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD SOFR+ 3.50%  0.50%  8.23% 10/16/2028  248,125  247,170  241,508 
LSF9 Atlantis Holdings, LLC (A Wireless) Retail Term Loan B Loan 3M USD SOFR+ 7.25%  0.75%  11.83% 3/29/2029  2,962,500  2,872,908  2,888,438 
MAGNITE, INC. Services: Business Term Loan Loan 1M USD LIBOR+ 5.00%  0.75%  9.63% 4/28/2028  2,964,950  2,901,156  2,826,575 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan 1M USD LIBOR+ 1.75%  0.00%  6.38% 8/29/2025  1,317,074  1,317,074  1,308,842 
Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan 3M USD LIBOR+ 1.75%  0.00%  6.49% 2/15/2027  250,000  249,658  247,500 
Maxar Technologies Inc Aerospace & Defense Term Loan (6/22) Loan 1M USD SOFR+ 4.25%  0.50%  8.97% 6/14/2029  1,994,987  1,926,722  1,997,641 
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan B (02/23) Loan 3M USD SOFR+ 5.00%  0.00%  8.81% 2/27/2028  3,450,000  3,346,500  3,363,750 
McGraw-Hill Education, Inc. Media: Advertising, Printing & Publishing Term Loan (07/21) Loan 3M USD LIBOR+ 4.75%  0.50%  9.70% 7/28/2028  1,975,000  1,957,770  1,894,025 
MedAssets Software Inter Hldg, Inc. High Tech Industries Term Loan (11/21) (USD) Loan 1M USD LIBOR+ 4.00%  0.50%  8.63% 12/18/2028  496,250  493,413  462,753 
Mermaid Bidco Inc. High Tech Industries Term Loan B2 Loan 3M USD LIBOR+ 3.50%  0.75%  8.30% 12/22/2027  983,769  981,224  964,093 
Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan 3M USD LIBOR+ 2.50%  0.00%  7.23% 3/1/2026  2,980,405  2,970,477  2,968,871 
Michaels Companies Inc Retail Term Loan B (Magic Mergeco) Loan 3M USD LIBOR+ 4.25%  0.75%  8.98% 4/8/2028  2,467,450  2,452,022  2,254,632 
MPH Acquisition Holdings LLC (Multiplan) Services: Business Term Loan B (08/21) Loan 3M USD LIBOR+ 4.25%  0.50%  9.20% 9/1/2028  2,992,424  2,725,679  2,509,148 
MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental) Loan 3M USD LIBOR+ 3.75%  0.00%  8.48% 9/30/2024  2,842,097  2,823,791  2,778,150 
NAB Holdings, LLC (North American Bancard) Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan 3M USD SOFR+ 3.00%  0.50%  7.73% 11/23/2028  2,970,000  2,963,897  2,927,678 
Napa Management Services Corp Healthcare & Pharmaceuticals Term Loan B (02/22) Loan 1M USD SOFR+ 5.25%  0.75%  9.95% 2/22/2029  3,000,000  2,407,500  2,285,640 
Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+ 3.50%  0.00%  8.19% 11/14/2025  3,436,481  3,419,311  3,395,690 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan 2/21 Loan 1M USD SOFR+ 3.75%  0.75%  8.47% 3/2/2028  2,736,043  2,727,702  2,108,477 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C 2/21 Loan 3M USD LIBOR+ 3.75%  0.75%  8.48% 3/2/2028  87,464  87,137  67,402 
NEW ERA CAP, LLC Consumer goods: Durable Term Loan (01/22) Loan 3M USD LIBOR+ 6.00%  0.75%  10.82% 7/13/2027  3,628,164  3,627,422  3,483,037 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 2.50%  0.00%  7.13% 9/18/2026  657,625  652,850  655,745 
Next Level Apparel, Inc. Retail Term Loan Loan 3M USD LIBOR+ 5.50%  1.00%  10.33% 8/9/2024  1,675,340  1,670,519  1,373,779 
NortonLifeLock Inc. High Tech Industries Term Loan B Loan 1M USD SOFR+ 2.00%  0.50%  6.72% 9/12/2029  1,398,374  1,392,077  1,382,391 
Novae LLC Automotive Term Loan B Loan 3M USD SOFR+ 5.00%  0.75%  9.82% 12/22/2028  1,985,000  1,972,048  1,692,213 
Nuvei Technologies Corp. High Tech Industries US Term Loan Loan 1M USD LIBOR+ 2.50%  0.50%  7.13% 9/29/2025  2,216,250  2,213,211  2,210,709 
Olaplex, Inc. Consumer goods: Non-durable Term Loan (2/22) Loan 1M USD SOFR+ 3.50%  0.50%  8.20% 2/23/2029  2,492,500  2,386,817  2,224,556 
Open Text Corporation High Tech Industries Term Loan B Loan 1M USD SOFR+ 3.50%  0.50%  8.22% 8/24/2029  1,500,000  1,455,000  1,496,955 
Organon & Co. Healthcare & Pharmaceuticals Term Loan USD Loan 3M USD LIBOR+ 3.00%  0.50%  7.75% 6/2/2028  2,327,083  2,318,310  2,297,995 
Pacific Gas & Electric Utilities: Electric Term Loan Loan 1M USD LIBOR+ 3.00%  0.50%  7.69% 6/18/2025  1,464,944  1,460,891  1,457,619 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number of
Shares		  Cost  Fair
Value		 
PriSo Acquisition Corporation Construction & Building Term Loan (01/21) Loan 3M USD LIBOR+  3.25%  0.75%  8.00% 12/28/2027  491,245   489,458   450,310 
Project Leopard Holdings, Inc. (NEW) High Tech Industries Term Loan B (06/22) Loan 6M USD SOFR+  5.25%  0.50%  9.80% 7/20/2029  1,000,000   933,902   924,690 
Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan 1M USD LIBOR+  3.00%  1.00%  7.64% 1/29/2025  476,438   475,777   444,278 
PUG LLC Services: Consumer Term Loan B (02/20) Loan 1M USD LIBOR+  3.50%  0.00%  8.13% 2/12/2027  480,126   478,777   378,099 
QUEST BORROWER LIMITED High Tech Industries Term Loan (1/22) Loan 3M USD SOFR+  4.25%  0.50%  9.08% 2/1/2029  1,990,000   1,972,710   1,707,539 
Rackspace Technology Global, Inc. High Tech Industries Term Loan (1/21) Loan 3M USD LIBOR+  2.75%  0.75%  7.60% 2/15/2028  2,974,823   2,882,889   1,863,310 
RAND PARENT LLC Transportation: Cargo Term Loan B Loan 1M USD SOFR+  4.25%  0.00%  8.80% 2/7/2030  1,500,000   1,462,500   1,455,000 
RealPage, Inc. High Tech Industries Term Loan (04/21) Loan 1M USD LIBOR+  3.00%  0.50%  7.63% 4/24/2028  987,500   985,860   955,159 
Renaissance Learning, Inc. Services: Consumer Term Loan (5/18) Loan 1M USD LIBOR+  3.25%  0.00%  7.88% 5/30/2025  2,938,373   2,922,432   2,871,025 
Rent-A-Center, Inc. Retail Term Loan B2 (9/21) Loan 3M USD LIBOR+  3.25%  0.50%  8.13% 2/17/2028  1,976,155   1,934,422   1,927,997 
Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan 3M USD LIBOR+  5.50%  1.00%  10.31% 12/20/2024  4,298,135   4,249,328   3,200,305 
Resideo Funding Inc. Services: Consumer Term Loan (1/21) Loan 3M USD LIBOR+  2.25%  0.50%  7.12% 2/11/2028  1,473,750   1,471,623   1,471,908 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 3M USD LIBOR+  4.25%  1.00%  8.98% 4/30/2024  3,038,616   3,035,050   2,385,313 
Restoration Hardware, Inc. Retail Term Loan (9/21) Loan 1M USD LIBOR+  2.50%  0.50%  7.13% 10/20/2028  3,462,437   3,456,353   3,320,477 
Reynolds Consumer Products LLC Containers, Packaging & Glass Term Loan Loan 1M USD SOFR+  1.75%  0.00%  6.47% 1/29/2027  1,276,932   1,276,737   1,273,880 
Reynolds Group Holdings Inc. Containers, Packaging & Glass Term Loan B2 Loan 1M USD LIBOR+  3.25%  0.00%  7.88% 2/5/2026  3,124,551   3,114,804   3,114,302 
Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan 1M USD LIBOR+  4.25%  0.00%  8.88% 11/28/2025  2,875,317   2,870,016   2,818,414 
Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 1M USD LIBOR+  3.50%  1.00%  8.13% 6/2/2025  5,590,662   5,565,048   5,499,813 
RV Retailer LLC Automotive Term Loan Loan 3M USD SOFR+  3.75%  0.75%  8.55% 2/8/2028  2,957,631   2,912,519   2,516,441 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+  3.00%  0.75%  7.72% 9/1/2027  1,478,623   1,467,543   1,474,010 
S&S HOLDINGS LLC Services: Business Term Loan Loan 3M USD LIBOR+  5.00%  0.50%  9.83% 3/10/2028  2,458,719   2,409,819   2,349,625 
Sally Holdings LLC Retail Term Loan B Loan 1M USD SOFR+  2.50%  0.00%  7.06% 3/24/2030  500,000   496,250   498,750 
Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan 1M USD LIBOR+  3.00%  0.75%  7.63% 4/25/2025  927,537   914,134   927,537 
Schweitzer-Mauduit International, Inc. High Tech Industries Term Loan B Loan 1M USD LIBOR+  3.75%  0.75%  8.44% 4/20/2028  2,955,000   2,942,014   2,895,900 
Scientific Games Holdings LP Hotel, Gaming & Leisure Term Loan B Loan 3M USD SOFR+  3.50%  0.50%  8.10% 4/4/2029  498,750   497,703   489,942 
Sedgwick Claims Management Services, Inc. Services: Business Term Loan B 2/23 Loan 1M USD SOFR+  3.75%  0.00%  8.32% 2/17/2028  1,000,000   990,000   987,500 
SETANTA AIRCRAFT LEASING DAC Aerospace & Defense Term Loan Loan 3M USD LIBOR+  2.00%  0.00%  6.73% 11/2/2028  1,000,000   998,000   991,250 
Signify Health, LLC Healthcare & Pharmaceuticals Term Loan B (6/21) Loan 3M USD LIBOR+  3.00%  0.50%  7.73% 6/16/2028  493,750   491,846   493,750 
Sitel Worldwide Corporation Services: Business USD Term Loan (7/21) Loan 1M USD LIBOR+  3.75%  0.50%  8.39% 8/28/2028  1,975,000   1,967,031   1,966,982 
SiteOne Landscape Supply, LLC Services: Business Term Loan (3/21) Loan 1M USD LIBOR+  2.00%  0.50%  6.64% 3/18/2028  777,852   776,450   774,609 
SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan 3M USD LIBOR+  2.50%  0.00%  7.33% 1/23/2025  485,000   485,000   479,243 
Smyrna Ready Mix Concrete, LLC Construction & Building Term Loan Loan 1M USD SOFR+  4.25%  0.50%  8.97% 4/2/2029  1,000,000   992,500   995,000 
Solis IV B.V. Consumer goods: Durable Term Loan B-1 Loan 3M USD SOFR+  3.50%  0.50%  8.37% 2/26/2029  1,994,987   1,724,963   1,826,132 
Sotheby’s Services: Business Term Loan (7/21) Loan 3M USD LIBOR+  4.50%  0.50%  9.33% 1/15/2027  3,223,744   3,183,482   3,209,237 
Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber Term Loan (04/21) Loan 1M USD LIBOR+  3.25%  0.75%  7.82% 8/2/2028  1,980,000   1,972,123   1,964,160 
Specialty Pharma III Inc. Services: Business Term Loan Loan 1M USD LIBOR+  4.25%  0.75%  8.88% 3/31/2028  1,975,000   1,959,930   1,821,938 
Spectrum Brands, Inc. Consumer goods: Durable Term Loan (2/21) Loan 3M USD LIBOR+  2.00%  0.50%  6.96% 3/3/2028  491,250   490,363   487,158 
Spin Holdco, Inc. Services: Consumer Term Loan 3/21 Loan 3M USD LIBOR+  4.00%  0.75%  8.77% 3/4/2028  2,947,500   2,935,211   2,475,487 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		 
PACTIV EVERGREEN GROUP HOLDINGS INC. Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+ 3.25%  0.50%  7.88% 9/20/2028  987,500  983,571  981,950 
Padagis LLC Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.75%  0.50%  9.54% 7/6/2028  941,176  933,570  864,122 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Term Loan 1/21 Loan 3M USD LIBOR+ 4.25%  0.50%  9.08% 1/7/2028  492,500  489,882  461,719 
PAR PETROLEUM LLC Energy: Oil & Gas Term Loan 2/23 Loan 1M USD SOFR+ 4.25%  0.50%  8.92% 2/13/2030  1,500,000  1,477,500  1,479,375 
PATAGONIA HOLDCO LLC Telecommunications Term Loan B Loan 3M USD SOFR+ 5.75%  0.50%  10.47% 8/1/2029  1,995,000  1,653,635  1,700,738 
Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan 1M USD LIBOR+ 3.75%  0.00%  8.38% 3/30/2027  486,509  479,333  424,630 
PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan 1M USD LIBOR+ 2.50%  0.00%  7.13% 5/29/2026  809,038  806,994  807,396 
PEARLS (Netherlands) Bidco B.V. Chemicals, Plastics, & Rubber USD Term Loan (02/22) Loan 3M USD SOFR+ 3.75%  0.50%  8.43% 2/28/2029  992,500  990,539  975,131 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC Healthcare & Pharmaceuticals Term Loan (12/22) Loan 1M USD LIBOR+ 3.25%  0.50%  7.88% 12/29/2028  1,292,862  1,287,663  1,272,396 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (12/21) Loan 1M USD LIBOR+ 3.25%  0.50%  7.88% 12/29/2028  147,287  147,287  144,174 
Penn National Gaming, Inc Hotel, Gaming & Leisure Term Loan B Loan 1M USD SOFR+ 2.75%  0.50%  7.47% 5/3/2029  995,000  990,530  990,851 
Peraton Corp. Aerospace & Defense Term Loan B Loan 1M USD LIBOR+ 3.75%  0.75%  8.38% 2/1/2028  5,306,577  5,291,284  5,249,372 
PHYSICIAN PARTNERS, LLC Healthcare & Pharmaceuticals Term Loan Loan 1M USD SOFR+ 4.00%  0.50%  8.72% 12/23/2028  1,985,000  1,967,896  1,900,638 
Pike Corporation Construction & Building Term Loan (8/22) Loan 1M USD SOFR+ 3.50%  0.00%  8.12% 1/21/2028  498,750  487,274  497,294 
Pitney Bowes Inc Services: Business Term Loan B Loan 1M USD SOFR+ 4.00%  0.00%  8.73% 3/17/2028  3,939,924  3,914,651  3,789,734 
Plastipak Holdings Inc. Containers, Packaging & Glass Term Loan B (11/21) Loan 1M USD LIBOR+ 2.50%  0.50%  7.13% 12/1/2028  1,921,176  1,913,386  1,911,974 
Playtika Holding Corp. High Tech Industries Term Loan B (3/21) Loan 1M USD LIBOR+ 2.75%  0.00%  7.38% 3/13/2028  4,421,250  4,414,119  4,370,804 
PMHC II, INC. Chemicals, Plastics, & Rubber Term Loan (02/22) Loan 3M USD SOFR+ 4.25%  0.50%  9.08% 4/21/2029  1,995,000  1,986,056  1,710,912 
PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan 3M USD LIBOR+ 3.00%  0.75%  7.75% 12/29/2027  491,250  489,531  487,566 
Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+ 4.75%  0.75%  9.38% 2/12/2028  5,403,750  5,359,857  5,025,488 
Pre-Paid Legal Services, Inc. Services: Consumer Term Loan (12/21) Loan 1M USD LIBOR+ 3.75%  0.50%  8.38% 12/15/2028  2,977,500  2,956,393  2,929,116 
Presidio, Inc. Services: Business Term Loan B (1/20) Loan 3M USD SOFR+ 3.50%  0.00%  8.28% 1/22/2027  487,500  486,909  485,267 
Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan 3M USD LIBOR+ 2.75%  0.75%  7.52% 9/23/2026  3,520,468  3,520,468  3,511,667 
PRIORITY HOLDINGS, LLC Services: Consumer Term Loan Loan 3M USD LIBOR+ 5.75%  1.00%  10.70% 4/27/2027  2,955,000  2,932,371  2,936,531 
PriSo Acquisition Corporation Construction & Building Term Loan (01/21) Loan 3M USD LIBOR+ 3.25%  0.75%  8.00% 12/28/2027  491,245  489,458  450,310 
Project Leopard Holdings, Inc. (NEW) High Tech Industries Term Loan B (06/22) Loan 6M USD SOFR+ 5.25%  0.50%  9.80% 7/20/2029  1,000,000  933,902  924,690 
Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan 1M USD LIBOR+ 3.00%  1.00%  7.64% 1/29/2025  476,438  475,777  444,278 
PUG LLC Services: Consumer Term Loan B (02/20) Loan 1M USD LIBOR+ 3.50%  0.00%  8.13% 2/12/2027  480,126  478,777  378,099 
QUEST BORROWER LIMITED High Tech Industries Term Loan (1/22) Loan 3M USD SOFR+ 4.25%  0.50%  9.08% 2/1/2029  1,990,000  1,972,710  1,707,539 
Rackspace Technology Global, Inc. High Tech Industries Term Loan (1/21) Loan 3M USD LIBOR+ 2.75%  0.75%  7.60% 2/15/2028  2,974,823  2,882,889  1,863,310 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number of
Shares		  Cost  Fair
Value		 
Spirit Aerosystems Inc. Aerospace & Defense Term Loan (11/22) Loan 3M USD SOFR+  4.50%  0.50%  9.18% 1/14/2027  498,750   484,414   498,541 
SRAM, LLC Consumer goods: Durable Term Loan (05/21) Loan 1M USD LIBOR+  2.75%  0.50%  7.38% 5/12/2028  2,709,091   2,705,948   2,682,000 
SS&C Technologies, Inc. Services: Business Term Loan B3 Loan 1M USD LIBOR+  1.75%  0.00%  6.38% 4/16/2025  167,061   166,987   166,678 
SS&C Technologies, Inc. Services: Business Term Loan B4 Loan 1M USD LIBOR+  1.75%  0.00%  6.38% 4/16/2025  148,146   148,083   147,807 
SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan 1M USD LIBOR+  1.75%  0.00%  6.38% 4/16/2025  458,152   457,773   457,199 
STANDARD INDUSTRIES INC. Construction & Building Term Loan B Loan 6M USD LIBOR+  2.25%  0.50%  6.43% 9/22/2028  630,250   625,240   628,032 
Staples, Inc. Wholesale Term Loan (03/19) Loan 3M USD LIBOR+  5.00%  0.00%  9.81% 4/16/2026  4,341,357   4,246,081   4,013,802 
Storable, Inc High Tech Industries Term Loan B Loan 3M USD SOFR+  3.50%  0.50%  8.08% 4/17/2028  495,000   494,153   482,318 
Summit Materials, LLC Metals & Mining Term Loan B (12/22) Loan 3M USD SOFR+  3.00%  0.00%  7.61% 12/13/2027  250,000   247,640   249,583 
Superannuation & Investments US LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  3.75%  0.50%  8.38% 12/1/2028  990,000   981,648   984,515 
Sweetwater Borrower, LLC Retail Term Loan (8/21) Loan 1M USD LIBOR+  4.25%  0.75%  8.94% 8/2/2028  2,000,000   1,905,968   1,880,000 
Syncsort Incorporated High Tech Industries Term Loan B (10/21) Loan 3M USD LIBOR+  4.00%  0.75%  8.82% 4/24/2028  2,469,987   2,468,993   2,243,984 
Ta TT Buyer LLC Media: Broadcasting & Subscription Term Loan 3/22 Loan 6M USD SOFR+  5.00%  0.50%  8.98% 4/2/2029  997,500   988,507   982,538 
Tenable Holdings, Inc. Services: Business Term Loan B (6/21) Loan 3M USD LIBOR+  2.75%  0.50%  7.58% 7/7/2028  990,000   988,026   980,922 
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+  5.25%  1.00%  9.97% 7/15/2025  4,383,217   4,330,652   4,322,948 
Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  4.00%  1.00%  8.63% 9/27/2024  1,900,000   1,899,296   1,819,250 
The Dun & Bradstreet Corporation Services: Business Term Loan B Loan 1M USD SOFR+  3.25%  0.00%  7.85% 1/18/2029  248,125   246,554   246,636 
The Dun & Bradstreet Corporation Services: Business Term Loan Loan 1M USD LIBOR+  3.25%  0.00%  7.87% 2/6/2026  962,949   962,285   960,021 
THE KNOT WORLDWIDE INC. Services: Consumer Term Loan (1/22) Loan 1M USD SOFR+  4.50%  0.00%  9.22% 12/19/2025  4,845,447   4,840,970   4,833,333 
Thor Industries, Inc. Automotive USD Term Loan (3/21) Loan 1M USD LIBOR+  3.00%  0.00%  7.69% 2/1/2026  2,015,823   1,990,264   2,004,494 
Torrid LLC Wholesale Term Loan 5/21 Loan 3M USD LIBOR+  5.50%  0.75%  10.31% 6/14/2028  2,978,835   2,540,024   2,529,031 
TORY BURCH LLC Retail Term Loan Loan 1M USD LIBOR+  3.50%  0.50%  8.13% 4/15/2028  1,329,211   1,232,469   1,268,147 
Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD SOFR+  3.50%  0.75%  8.23% 8/18/2027  490,000   485,078   383,180 
Trans Union LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  2.25%  0.50%  6.88% 12/1/2028  796,452   794,928   791,203 
Transdigm, Inc. Aerospace & Defense Term Loan H Loan 3M USD SOFR+  3.25%  0.00%  7.83% 2/21/2027  1,993,370   1,990,666   1,989,941 
TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco Term Loan (03/21) Loan 3M USD LIBOR+  3.50%  0.50%  8.23% 3/31/2028  1,477,502   1,471,933   1,372,422 
Tronox Finance LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+  2.25%  0.00%  6.88% 3/10/2028  346,923   346,338   340,907 
TruGreen Limited Partnership Services: Consumer Term Loan Loan 1M USD LIBOR+  4.00%  0.75%  8.63% 10/29/2027  954,501   949,189   873,368 
Uber Technologies, Inc. Transportation: Consumer Term Loan B (2/21) Loan 3M USD LIBOR+  3.50%  0.00%  8.45% 2/25/2027  3,906,277   3,874,854   3,913,620 
Ultra Clean Holdings, Inc. High Tech Industries Incremental Term Loan 3/21 Loan 1M USD LIBOR+  3.75%  0.00%  8.38% 8/27/2025  820,338   817,776   819,928 
Unimin Corporation Metals & Mining Term Loan (12/20) Loan 3M USD LIBOR+  4.00%  1.00%  8.78% 7/31/2026  496,815   476,431   489,984 
United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan 1M USD SOFR+  3.25%  0.00%  7.98% 10/22/2025  1,289,967   1,252,901   1,291,309 
United Road Services Inc. Transportation: Cargo Term Loan (10/17) Loan 3M USD LIBOR+  5.75%  1.00%  10.70% 9/1/2024  889,180   886,242   465,335 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/21) Loan 1M USD LIBOR+  3.25%  0.75%  7.88% 3/15/2026  2,446,648   2,441,783   2,426,610 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/22) Loan 3M USD SOFR+  4.25%  0.50%  8.83% 6/25/2029  248,750   241,881   248,233 
Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD SOFR+  3.00%  0.00%  7.73% 1/20/2028  1,828,465   1,827,288   1,825,046 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		 
RAND PARENT LLC Transportation: Cargo Term Loan B Loan 1M USD SOFR+ 4.25%  0.00%  8.80% 2/7/2030  1,500,000  1,462,500  1,455,000 
RealPage, Inc. High Tech Industries Term Loan (04/21) Loan 1M USD LIBOR+ 3.00%  0.50%  7.63% 4/24/2028  987,500  985,860  955,159 
Renaissance Learning, Inc. Services: Consumer Term Loan (5/18) Loan 1M USD LIBOR+ 3.25%  0.00%  7.88% 5/30/2025  2,938,373  2,922,432  2,871,025 
Rent-A-Center, Inc. Retail Term Loan B2 (9/21) Loan 3M USD LIBOR+ 3.25%  0.50%  8.13% 2/17/2028  1,976,155  1,934,422  1,927,997 
Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan 3M USD LIBOR+ 5.50%  1.00%  10.31% 12/20/2024  4,298,135  4,249,328  3,200,305 
Resideo Funding Inc. Services: Consumer Term Loan (1/21) Loan 3M USD LIBOR+ 2.25%  0.50%  7.12% 2/11/2028  1,473,750  1,471,623  1,471,908 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 3M USD LIBOR+ 4.25%  1.00%  8.98% 4/30/2024  3,038,616  3,035,050  2,385,313 
Restoration Hardware, Inc. Retail Term Loan (9/21) Loan 1M USD LIBOR+ 2.50%  0.50%  7.13% 10/20/2028  3,462,437  3,456,353  3,320,477 
Reynolds Consumer Products LLC Containers, Packaging & Glass Term Loan Loan 1M USD SOFR+ 1.75%  0.00%  6.47% 1/29/2027  1,276,932  1,276,737  1,273,880 
Reynolds Group Holdings Inc. Containers, Packaging & Glass Term Loan B2 Loan 1M USD LIBOR+ 3.25%  0.00%  7.88% 2/5/2026  3,124,551  3,114,804  3,114,302 
Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan 1M USD LIBOR+ 4.25%  0.00%  8.88% 11/28/2025  2,875,317  2,870,016  2,818,414 
Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 1M USD LIBOR+ 3.50%  1.00%  8.13% 6/2/2025  5,590,662  5,565,048  5,499,813 
RV Retailer LLC Automotive Term Loan Loan 3M USD SOFR+ 3.75%  0.75%  8.55% 2/8/2028  2,957,631  2,912,519  2,516,441 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+ 3.00%  0.75%  7.72% 9/1/2027  1,478,623  1,467,543  1,474,010 
S&S HOLDINGS LLC Services: Business Term Loan Loan 3M USD LIBOR+ 5.00%  0.50%  9.83% 3/10/2028  2,458,719  2,409,819  2,349,625 
Sally Holdings LLC Retail Term Loan B Loan 1M USD SOFR+ 2.50%  0.00%  7.06% 3/24/2030  500,000  496,250  498,750 
Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan 1M USD LIBOR+ 3.00%  0.75%  7.63% 4/25/2025  927,537  914,134  927,537 
Schweitzer-Mauduit International, Inc. High Tech Industries Term Loan B Loan 1M USD LIBOR+ 3.75%  0.75%  8.44% 4/20/2028  2,955,000  2,942,014  2,895,900 
Scientific Games Holdings LP Hotel, Gaming & Leisure Term Loan B Loan 3M USD SOFR+ 3.50%  0.50%  8.10% 4/4/2029  498,750  497,703  489,942 
Sedgwick Claims Management Services, Inc. Services: Business Term Loan B 2/23 Loan 1M USD SOFR+ 3.75%  0.00%  8.32% 2/17/2028  1,000,000  990,000  987,500 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number of
Shares		  Cost  Fair
Value		 
Vaco Holdings, LLC Services: Business Term Loan (01/22) Loan 3M USD SOFR+  5.00%  0.75%  9.73% 1/19/2029  2,342,210   2,275,198   2,310,989 
Vericast Corp. Media: Advertising, Printing & Publishing Term Loan Loan 3M USD SOFR+  7.75%  1.00%  12.33% 6/15/2026  1,201,006   1,199,817   939,787 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan 3M USD LIBOR+  4.00%  0.00%  8.96% 8/20/2025  1,368,031   1,364,137   1,269,875 
Vertex Aerospace Services Corp Aerospace & Defense Term Loan (10/21) Loan 1M USD LIBOR+  3.50%  0.75%  8.13% 12/6/2028  992,500   988,789   987,895 
VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan (01/22) Loan 1M USD SOFR+  3.00%  0.50%  7.66% 1/12/2029  3,069,879   3,063,097   3,036,111 
Viasat Inc Telecommunications Term Loan (2/22) Loan 1M USD SOFR+  4.50%  0.50%  9.23% 3/2/2029  1,994,987   1,948,951   1,967,137 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (9/21) Loan 1M USD LIBOR+  2.25%  0.00%  6.85% 9/28/2028  2,853,409   2,845,646   2,834,377 
Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  6.38% 12/31/2025  897,014   896,802   895,023 
Vizient, Inc Healthcare & Pharmaceuticals Term Loan 4/22 Loan 1M USD SOFR+  2.25%  0.50%  6.91% 5/16/2029  497,500   492,868   496,525 
VM Consolidated, Inc. Construction & Building Term Loan B (3/21) Loan 1M USD LIBOR+  3.25%  0.00%  7.88% 3/24/2028  2,185,087   2,183,095   2,180,170 
Vouvray US Finance LLC High Tech Industries Term Loan Loan 1M USD SOFR+  6.00%  1.00%  10.62% 9/9/2025  471,250   471,250   442,386 
Walker & Dunlop, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (12/22) Loan 1M USD SOFR+  3.00%  0.50%  7.72% 12/15/2028  500,000   490,249   496,250 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan Incremental (11/22) Loan 1M USD SOFR+  3.00%  0.50%  7.62% 1/19/2028  500,000   490,562   498,960 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G Loan 1M USD LIBOR+  2.13%  0.00%  6.76% 1/20/2028  1,250,000   1,249,851   1,243,750 
Watlow Electric Manufacturing Company High Tech Industries Term Loan B Loan 3M USD SOFR+  3.75%  0.50%  8.69% 3/2/2028  2,456,250   2,447,468   2,417,368 
West Corporation Telecommunications Term Loan B-3 Loan 3M USD SOFR+  4.00%  1.00%  8.93% 4/9/2027  1,189,119   1,172,865   1,044,939 
WEX Inc. Services: Business Term Loan B (3/21) Loan 1M USD LIBOR+  2.25%  0.00%  6.88% 3/31/2028  2,954,924   2,946,492   2,944,582 
WildBrain Ltd. Media: Diversified & Production Term Loan Loan 1M USD SOFR+  4.25%  0.75%  8.98% 3/27/2028  1,965,000   1,935,307   1,864,903 
Xperi Corporation High Tech Industries Term Loan Loan 1M USD LIBOR+  3.50%  0.00%  8.13% 6/8/2028  2,427,446   2,420,580   2,388,752 
Zayo Group, LLC Telecommunications Term Loan 4/22 Loan 1M USD SOFR+  4.25%  0.50%  8.87% 3/9/2027  992,500   971,029   842,027 

 


 

 

Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		 
SETANTA AIRCRAFT LEASING DAC Aerospace & Defense Term Loan Loan 3M USD LIBOR+ 2.00%  0.00%  6.73% 11/2/2028  1,000,000  998,000  991,250 
Signify Health, LLC Healthcare & Pharmaceuticals Term Loan B (6/21) Loan 3M USD LIBOR+ 3.00%  0.50%  7.73% 6/16/2028  493,750  491,846  493,750 
Sitel Worldwide Corporation Services: Business USD Term Loan (7/21) Loan 1M USD LIBOR+ 3.75%  0.50%  8.39% 8/28/2028  1,975,000  1,967,031  1,966,982 
SiteOne Landscape Supply, LLC Services: Business Term Loan (3/21) Loan 1M USD LIBOR+ 2.00%  0.50%  6.64% 3/18/2028  777,852  776,450  774,609 
SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan 3M USD LIBOR+ 2.50%  0.00%  7.33% 1/23/2025  485,000  485,000  479,243 
Smyrna Ready Mix Concrete, LLC Construction & Building Term Loan Loan 1M USD SOFR+ 4.25%  0.50%  8.97% 4/2/2029  1,000,000  992,500  995,000 
Solis IV B.V. Consumer goods: Durable Term Loan B-1 Loan 3M USD SOFR+ 3.50%  0.50%  8.37% 2/26/2029  1,994,987  1,724,963  1,826,132 
Sotheby’s Services: Business Term Loan (7/21) Loan 3M USD LIBOR+ 4.50%  0.50%  9.33% 1/15/2027  3,223,744  3,183,482  3,209,237 
Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber Term Loan (04/21) Loan 1M USD LIBOR+ 3.25%  0.75%  7.82% 8/2/2028  1,980,000  1,972,123  1,964,160 
Specialty Pharma III Inc. Services: Business Term Loan Loan 1M USD LIBOR+ 4.25%  0.75%  8.88% 3/31/2028  1,975,000  1,959,930  1,821,938 
Spectrum Brands, Inc. Consumer goods: Durable Term Loan (2/21) Loan 3M USD LIBOR+ 2.00%  0.50%  6.96% 3/3/2028  491,250  490,363  487,158 
Spin Holdco, Inc. Services: Consumer Term Loan 3/21 Loan 3M USD LIBOR+ 4.00%  0.75%  8.77% 3/4/2028  2,947,500  2,935,211  2,475,487 
Spirit Aerosystems Inc. Aerospace & Defense Term Loan (11/22) Loan 3M USD SOFR+ 4.50%  0.50%  9.18% 1/14/2027  498,750  484,414  498,541 
SRAM, LLC Consumer goods: Durable Term Loan (05/21) Loan 1M USD LIBOR+ 2.75%  0.50%  7.38% 5/12/2028  2,709,091  2,705,948  2,682,000 
SS&C Technologies, Inc. Services: Business Term Loan B3 Loan 1M USD LIBOR+ 1.75%  0.00%  6.38% 4/16/2025  167,061  166,987  166,678 
SS&C Technologies, Inc. Services: Business Term Loan B4 Loan 1M USD LIBOR+ 1.75%  0.00%  6.38% 4/16/2025  148,146  148,083  147,807 
SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan 1M USD LIBOR+ 1.75%  0.00%  6.38% 4/16/2025  458,152  457,773  457,199 
STANDARD INDUSTRIES INC. Construction & Building Term Loan B Loan 6M USD LIBOR+ 2.25%  0.50%  6.43% 9/22/2028  630,250  625,240  628,032 
Staples, Inc. Wholesale Term Loan (03/19) Loan 3M USD LIBOR+ 5.00%  0.00%  9.81% 4/16/2026  4,341,357  4,246,081  4,013,802 
Storable, Inc High Tech Industries Term Loan B Loan 3M USD SOFR+ 3.50%  0.50%  8.08% 4/17/2028  495,000  494,153  482,318 
Summit Materials, LLC Metals & Mining Term Loan B (12/22) Loan 3M USD SOFR+ 3.00%  0.00%  7.61% 12/13/2027  250,000  247,640  249,583 
Superannuation & Investments US LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 3.75%  0.50%  8.38% 12/1/2028  990,000  981,648  984,515 
Sweetwater Borrower, LLC Retail Term Loan (8/21) Loan 1M USD LIBOR+ 4.25%  0.75%  8.94% 8/2/2028  2,000,000  1,905,968  1,880,000 
Syncsort Incorporated High Tech Industries Term Loan B (10/21) Loan 3M USD LIBOR+ 4.00%  0.75%  8.82% 4/24/2028  2,469,987  2,468,993  2,243,984 
Ta TT Buyer LLC Media: Broadcasting & Subscription Term Loan 3/22 Loan 6M USD SOFR+ 5.00%  0.50%  8.98% 4/2/2029  997,500  988,507  982,538 
Tenable Holdings, Inc. Services: Business Term Loan B (6/21) Loan 3M USD LIBOR+ 2.75%  0.50%  7.58% 7/7/2028  990,000  988,026  980,922 
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+ 5.25%  1.00%  9.97% 7/15/2025  4,383,217  4,330,652  4,322,948 
Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.00%  1.00%  8.63% 9/27/2024  1,900,000  1,899,296  1,819,250 
The Dun & Bradstreet Corporation Services: Business Term Loan B Loan 1M USD SOFR+ 3.25%  0.00%  7.85% 1/18/2029  248,125  246,554  246,636 
The Dun & Bradstreet Corporation Services: Business Term Loan Loan 1M USD LIBOR+ 3.25%  0.00%  7.87% 2/6/2026  962,949  962,285  960,021 
THE KNOT WORLDWIDE INC. Services: Consumer Term Loan (1/22) Loan 1M USD SOFR+ 4.50%  0.00%  9.22% 12/19/2025  4,845,447  4,840,970  4,833,333 
Thor Industries, Inc. Automotive USD Term Loan (3/21) Loan 1M USD LIBOR+ 3.00%  0.00%  7.69% 2/1/2026  2,015,823  1,990,264  2,004,494 


Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		 
Torrid LLC Wholesale Term Loan 5/21 Loan 3M USD LIBOR+ 5.50%  0.75%  10.31% 6/14/2028  2,978,835  2,540,024  2,529,031 
TORY BURCH LLC Retail Term Loan Loan 1M USD LIBOR+ 3.50%  0.50%  8.13% 4/15/2028  1,329,211  1,232,469  1,268,147 
Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD SOFR+ 3.50%  0.75%  8.23% 8/18/2027  490,000  485,078  383,180 
Trans Union LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 2.25%  0.50%  6.88% 12/1/2028  796,452  794,928  791,203 
Transdigm, Inc. Aerospace & Defense Term Loan H Loan 3M USD SOFR+ 3.25%  0.00%  7.83% 2/21/2027  1,993,370  1,990,666  1,989,941 
TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco Term Loan (03/21) Loan 3M USD LIBOR+ 3.50%  0.50%  8.23% 3/31/2028  1,477,502  1,471,933  1,372,422 
Tronox Finance LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+ 2.25%  0.00%  6.88% 3/10/2028  346,923  346,338  340,907 
TruGreen Limited Partnership Services: Consumer Term Loan Loan 1M USD LIBOR+ 4.00%  0.75%  8.63% 10/29/2027  954,501  949,189  873,368 
Uber Technologies, Inc. Transportation: Consumer Term Loan B (2/21) Loan 3M USD LIBOR+ 3.50%  0.00%  8.45% 2/25/2027  3,906,277  3,874,854  3,913,620 
Ultra Clean Holdings, Inc. High Tech Industries Incremental Term Loan 3/21 Loan 1M USD LIBOR+ 3.75%  0.00%  8.38% 8/27/2025  820,338  817,776  819,928 
Unimin Corporation Metals & Mining Term Loan (12/20) Loan 3M USD LIBOR+ 4.00%  1.00%  8.78% 7/31/2026  496,815  476,431  489,984 
United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan 1M USD SOFR+ 3.25%  0.00%  7.98% 10/22/2025  1,289,967  1,252,901  1,291,309 
United Road Services Inc. Transportation: Cargo Term Loan (10/17) Loan 3M USD LIBOR+ 5.75%  1.00%  10.70% 9/1/2024  889,180  886,242  465,335 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/21) Loan 1M USD LIBOR+ 3.25%  0.75%  7.88% 3/15/2026  2,446,648  2,441,783  2,426,610 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/22) Loan 3M USD SOFR+ 4.25%  0.50%  8.83% 6/25/2029  248,750  241,881  248,233 
Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD SOFR+ 3.00%  0.00%  7.73% 1/20/2028  1,828,465  1,827,288  1,825,046 
Vaco Holdings, LLC Services: Business Term Loan (01/22) Loan 3M USD SOFR+ 5.00%  0.75%  9.73% 1/19/2029  2,342,210  2,275,198  2,310,989 
Vericast Corp. Media: Advertising, Printing & Publishing Term Loan Loan 3M USD SOFR+ 7.75%  1.00%  12.33% 6/15/2026  1,201,006  1,199,817  939,787 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan 3M USD LIBOR+ 4.00%  0.00%  8.96% 8/20/2025  1,368,031  1,364,137  1,269,875 
Vertex Aerospace Services Corp Aerospace & Defense Term Loan (10/21) Loan 1M USD LIBOR+ 3.50%  0.75%  8.13% 12/6/2028  992,500  988,789  987,895 


Issuer Name Industry Asset Name Asset Type Reference
Rate/Spread		  SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number
of Shares		 Cost Fair
Value		 
VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan (01/22) Loan 1M USD SOFR+ 3.00%  0.50%  7.66% 1/12/2029  3,069,879  3,063,097  3,036,111 
Viasat Inc Telecommunications Term Loan (2/22) Loan 1M USD SOFR+ 4.50%  0.50%  9.23% 3/2/2029  1,994,987  1,948,951  1,967,137 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (9/21) Loan 1M USD LIBOR+ 2.25%  0.00%  6.85% 9/28/2028  2,853,409  2,845,646  2,834,377 
Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan 1M USD LIBOR+ 1.75%  0.00%  6.38% 12/31/2025  897,014  896,802  895,023 
Vizient, Inc Healthcare & Pharmaceuticals Term Loan 4/22 Loan 1M USD SOFR+ 2.25%  0.50%  6.91% 5/16/2029  497,500  492,868  496,525 
VM Consolidated, Inc. Construction & Building Term Loan B (3/21) Loan 1M USD LIBOR+ 3.25%  0.00%  7.88% 3/24/2028  2,185,087  2,183,095  2,180,170 
Vouvray US Finance LLC High Tech Industries Term Loan Loan 1M USD SOFR+ 6.00%  1.00%  10.62% 9/9/2025  471,250  471,250  442,386 
Walker & Dunlop, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (12/22) Loan 1M USD SOFR+ 3.00%  0.50%  7.72% 12/15/2028  500,000  490,249  496,250 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan Incremental (11/22) Loan 1M USD SOFR+ 3.00%  0.50%  7.62% 1/19/2028  500,000  490,562  498,960 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G Loan 1M USD LIBOR+ 2.13%  0.00%  6.76% 1/20/2028  1,250,000  1,249,851  1,243,750 
Watlow Electric Manufacturing Company High Tech Industries Term Loan B Loan 3M USD SOFR+ 3.75%  0.50%  8.69% 3/2/2028  2,456,250  2,447,468  2,417,368 
West Corporation Telecommunications Term Loan B-3 Loan 3M USD SOFR+ 4.00%  1.00%  8.93% 4/9/2027  1,189,119  1,172,865  1,044,939 
WEX Inc. Services: Business Term Loan B (3/21) Loan 1M USD LIBOR+ 2.25%  0.00%  6.88% 3/31/2028  2,954,924  2,946,492  2,944,582 
WildBrain Ltd. Media: Diversified & Production Term Loan Loan 1M USD SOFR+ 4.25%  0.75%  8.98% 3/27/2028  1,965,000  1,935,307  1,864,903 
Xperi Corporation High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.50%  0.00%  8.13% 6/8/2028  2,427,446  2,420,580  2,388,752 
Zayo Group, LLC Telecommunications Term Loan 4/22 Loan 1M USD SOFR+ 4.25%  0.50%  8.87% 3/9/2027  992,500  971,029  842,027 
ZEBRA BUYER (Allspring) LLC Banking, Finance, Insurance & Real Estate Term Loan 4/21 Loan 3M USD LIBOR+ 3.00%  0.50%  7.75% 11/1/2028  880,444  876,985  874,941 
Zekelman Industries, Inc. Metals & Mining Term Loan (01/20) Loan 3M USD LIBOR+ 2.00%  0.00%  6.73% 1/25/2027  961,471  961,471  948,251 
Zest Acquisition Corp. Healthcare & Pharmaceuticals Term Loan (1/23) Loan 1M USD SOFR+ 5.50%  0.00%  10.07% 1/31/2028  2,000,000  1,901,512  1,928,340 
Zodiac Pool Solutions Consumer goods: Durable Term Loan (1/22) Loan 1M USD SOFR+ 2.00%  0.50%  6.72% 1/29/2029  495,000  494,015  490,192 
                          $645,599,001 $605,954,468 
Issuer Name Industry Asset Name Asset
Type		 Reference
Rate/Spread		 SOFR/
LIBOR
Floor		  Current
Rate
(All In)		  Maturity
Date		 Principal/
Number of
Shares		  Cost  Fair
Value		 
ZEBRA BUYER (Allspring) LLC Banking, Finance, Insurance & Real Estate Term Loan 4/21 Loan 3M USD LIBOR+  3.00%  0.50%  7.75% 11/1/2028  880,444   876,985   874,941 
Zekelman Industries, Inc. Metals & Mining Term Loan (01/20) Loan 3M USD LIBOR+  2.00%  0.00%  6.73% 1/25/2027  961,471   961,471   948,251 
Zest Acquisition Corp. Healthcare & Pharmaceuticals Term Loan (1/23) Loan 1M USD SOFR+  5.50%  0.00%  10.07% 1/31/2028  2,000,000   1,901,512   1,928,340 
Zodiac Pool Solutions Consumer goods: Durable Term Loan (1/22) Loan 1M USD SOFR+  2.00%  0.50%  6.72% 1/29/2029  495,000   494,015   490,192 
                            $645,599,001  $605,954,468 

  

  Number of Shares  Cost  Fair Value 
Cash and cash equivalents         
U.S. Bank Money Market (c)  23,776,950  $23,776,950  $23,776,950 
Total cash and cash equivalents  23,776,950  $23,776,950  $23,776,950 

 

(a)All or a portion of this investment has an unfunded commitment as of February 28, 2023.

(b)As of February 28, 2023, the investment was in default and on non-accrual status.

(c)Included within cash and cash equivalents in Saratoga CLO’s Statements of Assets and Liabilities as of February 28, 2023.

(d)Investments include Payment-in-Kind Interest.

 

LIBOR—London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

 

1M USD LIBOR—The 1 month USD LIBOR rate as of February 28, 2023 was 4.67%.

3M USD LIBOR—The 3 month USD LIBOR rate as of February 28, 2023 was 4.97%.

6M USD LIBOR—The 6 month USD LIBOR rate as of February 28, 2023 was 5.26%.

1M SOFR - The 1 month SOFR rate as of February 28, 2023 was 4.66%.

3M SOFR - The 3 month SOFR rate as of February 28, 2023 was 4.89%.

6M SOFR - The 6 month SOFR rate as of February 28, 2023 was 5.15%.

  

Prime—The Prime Rate as of February 28, 2023 was 7.75%.

See accompanying notes to financial statements

 


 

 

Note 5. Investment in SLF JV

 

On October 26, 2021, the Company and TJHA entered into the LLC Agreement to co-manage SLF JV. SLF JV is invested in Saratoga Investment Corp Senior Loan Fund 2022-1, Ltd (“SLF 2021”), which is a wholly owned subsidiary of SLF JV. SLF 2021 was formed for the purpose of making investments in a diversified portfolio of broadly syndicated first lien and second lien term loans or bonds in the primary and secondary markets.

 

On September 30, 2022, SLF 2021 was renamed to Saratoga Investment Corp Senior Loan Fund 2022-1, Ltd. (“SLF 2022”).

 

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

 

The Company and TJHA have committed to provide up to a combined $50.0 million of financing to SLF JV through cash contributions, with the Company providing $43.75 million and TJHA providing $6.25 million, resulting in an 87.5% and 12.5% ownership between the two parties. The financing is issued in the form of an unsecured note and equity. The unsecured note paidpays a fixed rate of 10.0% per annum and wasis due and payable in full on October 20, 2033. As of MayAugust 31, 2023, the Company and TJHA’s investment in SLF JV consisted of an unsecured note of $17.6 million and $2.5 million, respectively; and membership interest of $17.6 million and $2.5 million, respectively. As of MayAugust 31, 2023 and February 28, 2023, the Company’s investment in the unsecured note of SLF JV had a fair value of $17.6 million and $17.6 million, respectively, and the Company’s investment in the membership interests of SLF JV had a fair value of $7.7$9.8 million and $13.1 million, respectively.

 

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

 

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the Company earned $0.5$0.4 million and $0.3 million, respectively, of interest income related to SLF JV, which is included in interest income. For the six months ended August 31, 2023 and August 31, 2022, the Company earned $0.9 million and $0.3 million, respectively, of interest income related to SLF JV, which is included in interest income. As of MayAugust 31, 2023 and February 28, 2023, $0.2 million and $0.4 million, respectively, of interest income related to SLF JV was included in interest receivable.

 

SLF JV’s initial investment in SLF 2022 was in the form of an unsecured loan. The unsecured loan paid a floating rate of LIBOR plus 7.00% per annum and was paid in full on June 9, 2023. The unsecured loan was repaid in full on October 28, 2022, as part of the CLO closing.

 

On October 28, 2022, SLF 2022 issued $402.1 million of the 2022 JV CLO Notes through the JV CLO trust. The 2022 JV CLO Notes were issued pursuant to the JV Indenture, with the Trustee. As part of the transaction, the Company purchased 87.50% of the Class E Notes from SLF 2022 with a par value of $12.25 million. As of MayAugust 31, 2023 and February 28, 2023, the fair value of these Class E Notes were $11.4 million and $11.4 million, respectively.

 


 

 

Note 6. Income Taxes

 

SIA-AAP, Inc., SIA-ARC, Inc., SIA-Avionte, Inc., SIA-AX, Inc., SIA-G4, Inc., SIA-GH, Inc., SIA-MDP, Inc., SIA-MAC, Inc., SIA-PP Inc., SIA-SZ, Inc., SIA-TG, Inc., SIA-TT Inc., SIA-Vector, Inc., and SIA-VR, Inc. each 100% owned by the Company, are each filing standalone C Corporation tax returns for U.S. federal and state tax purposes. As separately regarded entities for tax purposes, these entities are subject to U.S. federal income tax at normal corporate rates. For tax purposes, any distributions by the entities to the parent company would generally need to be distributed to the Company’s shareholders. Generally, such distributions of the entities’ income to the Company’s shareholders will be considered as qualified dividends for tax purposes. The entities’ taxable net income will differ from U.S. GAAP net income because of deferred tax temporary differences arising from net operating losses and unrealized appreciation and deprecation of securities held. Deferred tax assets and liabilities are measured using enacted corporate federal and state tax rates expected to apply to taxable income in the years in which those net operating losses are utilized and the unrealized gains and losses are realized. Deferred tax assets and deferred tax liabilities are netted off by entity, as allowed. The recoverability of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of a history of operating losses combined with insufficient projected taxable income or other taxable events in the taxable blockers. In February 2022, SIA-GH, Inc., SIA-TT Inc. and SIA-VR, Inc. received an approved plan of liquidation following the sale of equity held by each of the portfolio companies.

 

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

 

Deferred tax assets and liabilities, and related valuation allowance as of MayAugust 31, 2023 and February 28, 2023 were as follows:

 

 May 31,
2023		  February 28,
2023		  August 31,
2023		  February 28,
2023		 
Total deferred tax assets $2,393,158  $2,542,373  $2,780,474  $2,542,373 
Total deferred tax liabilities  (2,949,422)  (3,008,829)  (3,170,628)  (3,008,829)
Valuation allowance on net deferred tax assets  (2,246,371)  (2,350,116)  (2,396,358)  (2,350,116)
Net deferred tax liability $(2,802,635) $(2,816,572) $(2,786,512) $(2,816,572)

 

As of MayAugust 31, 2023, the valuation allowance on deferred tax assets was $2.2$2.4 million, which represents the federal and state tax effect of net operating losses and unrealized losses that we dothe Company does not believe we will realizebe realized through future taxable income. Any adjustments to the Company’s valuation allowance will depend on estimates of future taxable income and will be made in the period such determination is made.

  

Net income tax expense for the three months ended MayAugust 31, 2023 includes ($0.06)$0.2 million deferred tax expense (benefit) on net change in unrealized appreciation (depreciation) on investments, $0.0 million income tax provision/(benefit) from realized gain/(loss) on investments and $0.01($0.2) million net change in total operating expense in the consolidated statement of operations, respectively. Net income tax expense for the three months ended MayAugust 31, 2022 includes $0.4$0.2 million deferred tax expense (benefit) on net change in unrealized appreciation (depreciation) on investments, $0.1and ($0.1) million net change in total operating expense, in the consolidated statement of operations, respectively.

Net income tax expense for the six months ended August 31, 2023 includes $0.2 million deferred tax expense (benefit) on net change in unrealized appreciation (depreciation) on investments, and ($0.2) million net change in total operating expense, in the consolidated statement of operations, respectively. Net income tax expense for the six months ended August 31, 2022 includes $0.6 million deferred tax expense (benefit) on net change in unrealized appreciation (depreciation) on investments, ($0.07) million income tax benefitprovision/(benefit) from realized gain gain/(loss) on investments and ($0.1)0.2) million net change in total operating expense, in the consolidated statement of operations, respectively.

 

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

 

Federal and state income tax (provisions) benefit on investments for the three and six months ended MayAugust 31, 2023 and MayAugust 31, 2022:

 

 For the three months ended  For the three months ended  For the six months ended 
 May 31,
2023		  May 31,
2022		  August 31,
2023		  August 31,
2022		  August 31,
2023		  August 31,
2022		 
Current              
Federal $-  $213,842  $-  $(3,674) $-  $(217,516)
State  -   (78,503)  -   (55)      78,448 
Net current expense  -   135,339   -   (3,729)  -   (139,068)
Deferred                        
Federal  14,909   (296,071)  (23,832)  89,409   (38,741)  385,480 
State  (972)  (33,236)  7,708   42,583   8,680   75,819 
Net deferred expense  13,937   (329,307)  (16,124)  131,992   (30,060)  461,299 
Net tax provision $13,937  $(193,968) $(16,124) $128,263  $(30,060) $322,231 

 


 

 

Note 7. Agreements and Related Party Transactions

 

Investment Advisory and Management Agreement

 

On July 30, 2010, the Company entered into the Management Agreement with ourthe Manager. The initial term of the Management Agreement was two years from its effective date, with one-year renewals thereafter subject to certain approvals by ourthe Company’s board of directors and/or the Company’s stockholders. Most recently, on July 6, 2023, ourthe Company’s board of directors approved the renewal of the Management Agreement for an additional one-year term. Pursuant to the Management Agreement, ourthe Manager implements ourthe Company’s business strategy on a day-to-day basis and performs certain services for us,the Company, subject to oversight by ourthe board of directors. OurThe Manager is responsible for, among other duties, determining investment criteria, sourcing, analyzing and executing investments transactions, asset sales, financings and performing asset management duties. Under the Management Agreement, we have agreed to pay ourthe Company pays the Manager a management fee for investment advisory and management services consisting of a base management fee and an incentive management fee.

 

Base Management Fee and Incentive Management Fee

 

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

 

The incentive management fee consists of the following two parts:

 

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

 

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

 


For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the Company incurred $3.2$4.8 million and $0.0$4.1 million in base management fees, respectively. For the three months ended August 31, 2023 and August 31, 2022, the Company incurred $3.3 million and $1.7 million in incentive fees related to pre-incentive fee net investment income, respectively. For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the Company accrued an expense (benefit) of ($3.1)0.8) million and ($1.9)1.1) million in incentive fees related to capital gains.


For the six months ended August 31, 2022 and August 31, 2021, the Company incurred $9.4 million and $7.9 million in base management fees, respectively. For the six months ended August 31, 2023 and August 31, 2022, the Company incurred $6.5 million and $1.7 million in incentive fees related to pre-incentive fee net investment income, respectively. For the six months ended August 31, 2023 and August 31, 2022, the Company accrued an expense (benefit) of ($3.9) million and ($3.0) million in incentive fees related to capital gains.

 

The accrual is calculated using both realized and unrealized capital gains for the period. The actual incentive fee related to capital gains will be determined and payable in arrears at the end of the fiscal year and will include only realized capital gains for the period. As of MayAugust 31, 2023, the base management fees accrual was $4.6$4.8 million and the incentive fees accrual was $0.1$4.3 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities. As of February 28, 2023, the base management fees accrual was $4.3 million and the incentive fees accrual was $7.9 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities.

 

Administration Agreement

 

On July 30, 2010, the Company entered into a separate administration agreement (the “Administration Agreement”) with ourthe Manager, pursuant to which ourthe Manager, as ourthe Company’s administrator, has agreed to furnish usthe Company with the facilities and administrative services necessary to conduct our day-to-day operations and provide managerial assistance on ourthe Company’s behalf to those portfolio companies to which we arethe Company is required to provide such assistance. The initial term of the Administration Agreement was two years from its effective date, with one-year renewals thereafter subject to certain approvals by ourthe Company’s board of directors and/or ourthe Company’s stockholders. The amount of expenses payable or reimbursable thereunder by the Company was capped at $1.0 million for the initial two-year term of the Administration Agreement and subsequent renewals. Most recently, on July 6, 2023, ourthe Company’s board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to keepincreased the cap on the payment or reimbursement of expenses by the Company unchanged atfrom $3.275 million while continuing to assess whether to increase this within the foreseeable future, with any increase to be$4.3 million, effective August 1, 2023.

 

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recognized $0.8$0.9 million and $0.8 million in administrator expenses, respectively, pertaining to bookkeeping, recordkeeping and other administrative services provided to usthe Company in addition to ourthe Company’s allocable portion of rent and other overhead related expenses. For the six months ended August 31, 2023 and August 31, 2022, the Company recognized $1.8 million and $1.5 million in administrator expenses, respectively, pertaining to bookkeeping, recordkeeping and other administrative services provided to the Company in addition to the Company’s allocable portion of rent and other overhead related expenses. As of MayAugust 31, 2023 and February 28, 2023, $0.3 million of administrator expenses were accrued and included in due to manager in the accompanying consolidated statements of assets and liabilities. As of February 28, 2023, $0.001 million, respectively, of administrator expenses were accrued and included in due to manager in the accompanying consolidated statements of assets and liabilities.

 

Saratoga CLO

 

On December 14, 2018, the Company completed the third refinancing and issuance of the 2013-1 Reset CLO Notes. This refinancing, among other things, extended the Saratoga CLO reinvestment period to January 2021, and extended its legal maturity to January 2030. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $300 million in assets to approximately $500 million.

 

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

 


On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. The2033, and extended the non-call period was extended to February 2022. In addition, and as part of the refinancing, the Saratoga CLO has also beenwas upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. At August 31, 2021, the outstanding receivable of 2.6 million was repaid in full.

  


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

 

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recognized management fee income of $0.8 million and $0.8 million, respectively, related to the Saratoga CLO.

  

For the threesix months ended MayAugust 31, 2023 and MayAugust 31, 2022, the Company recognized management fee income of $1.6 million and $1.6 million, respectively, related to the Saratoga CLO.

For the six months ended August 31, 2023 and August 31, 2022, the Company neither bought nor sold any investments from the Saratoga CLO.

 

SLF JV

 

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

 

On October 28, 2022, SLF 2022 issued $402.1 million of the 2022 JV CLO Notes through the JV CLO trust. The 2022 JV CLO Notes were issued pursuant to the JV Indenture, with the Trustee.

  

As of MayAugust 31, 2023, the Company’s investment in the SLF JV had a fair value of $25.4$27.4 million, consisting of an unsecured loan of $17.6 million and membership interest of $7.7$9.8 million. For the three and six months ended MayAugust 31, 2023, the Company had $0.5$0.4 million and $0.9 million, respectively, of interest income related to SLF JV, of which $0.2 million was included in interest receivable as of MayAugust 31, 2023. For the three and six months ended August 31, 2022, the Company had $0.3 million and $0.7 million, respectively, of interest income related to SLF JV, of which $0.0 million was included in interest receivable as of August 31, 2022.

 

As part of the JV CLO trust transaction, the Company purchased 87.50% of the Class E Notes from SLF 2022 with a par value of $12.25 million.

 


Note 8. Borrowings

 

Credit Facility

 

As a BDC, we are only allowed to employ leverage to the extent that our asset coverage, as defined in the 1940 Act, equals at least 200% after giving effect to such leverage, or, 150% if certain requirements under the 1940 Act are met. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, our board of directors, including a majority of our directors who are not “interested persons” (as defined in Section 2(a)(19) of the 1940 Act”) of the Company (“independent directors”), approved a minimum asset coverage ratio of 150%. The 150% asset coverage ratio became effective on April 16, 2019. The amount of leverage that we employ at any time depends on our assessment of the market and other factors at the time of any proposed borrowing. Our asset coverage ratio, as defined in the 1940 Act, was 155.7%159.7% as of MayAugust 31, 2023 and 165.9% as of February 28, 2023.

  


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

 

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

 

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

 

Encina Credit Facility

 

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

 

On January 27, 2023, we entered into the first amendment to the Credit Agreement to, among other things:

 

 ●

increase the borrowings available under the Encina Credit Facility from up to $50.0 million to up to $65.0 million;

 

 ●

change the underlying benchmark used to compute interest under the Credit Agreement from LIBOR to Term SOFR for a one-month tenor plus a 0.10% credit spread adjustment;

 

 ●

increase the applicable effective margin rate on borrowings from 4.00% to 4.25%;

 

 ●

extend the revolving period from October 4, 2024 to January 27, 2026;

 


 

 

 ●

extend the period during which the borrower may request one or more increases in the borrowings available under the Encina Credit Facility (each such increase, a “Facility Increase”) from October 4, 2023 to January 27, 2025, and increased the maximum borrowings available pursuant to such Facility Increase from $75.0 million to $150.0 million;

 

 ●

revise the eligibility criteria for eligible collateral loans to exclude certain industries in which an obligor or related guarantor may be involved; and

 

 ●

amend the provisions permitting the borrower to request an extension in the Commitment Termination Date (as defined in the Credit Agreement) to allow requests to extend any applicable Commitment Termination Date, rather than a one-time request to extend the original Commitment Termination Date, subject to a notice requirement.

 

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

 

As of MayAugust 31, 2023 and February 28, 2023, there were $35.0 million and $32.5 million outstanding borrowings under the Encina Credit Facility. During the applicable periods, the Company was in compliance with all of the limitations and requirements of the facility. Financing costs of $2.0 million related to the Encina Credit Facility have been capitalized and are being amortized over the term of the facility, with all existing financing costs amortized through January 27, 2026 from the date of the amendment and extension.

 

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, we recorded $1.1$0.9 million and $0.2$0.4 million of interest expense related to the Encina Credit Facility, respectively, which includes commitment and administrative agent fees. For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, we recorded $0.1 million and $0.1 million of deferred financing costs related to the Encina Credit Facility, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended MayAugust 31, 2023, the weighted average interest rate on the outstanding borrowings under the Encina Credit Facility was 9.41%9.75%, and the average dollar amount of outstanding borrowings under the Encina Credit Facility was $46.7$35.0 million.

For the six months ended August 31, 2023 and August 31, 2022, we recorded $2.0 million and $0.7 million of interest expense related to the Encina Credit Facility, respectively, which includes commitment and administrative agent fees. For the six months ended August 31, 2023 and August 31, 2022, we recorded $0.2 million and $0.2 million of deferred financing costs related to the Encina Credit Facility, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2023, the weighted average interest rate on the outstanding borrowings under the Encina Credit Facility was 9.56%, and the average dollar amount of outstanding borrowings under the Encina Credit Facility was $40.9 million.

 

The Encina Credit Facility contains limitations as to how borrowed funds may be used, such as restrictions on industry concentrations, asset size, weighted average life, currency denomination and collateral interests. The Encina Credit Facility also includes certain requirements relating to portfolio performance, the violation of which could result in the limit of further advances and, in some cases, result in an event of default, allowing the lenders to accelerate repayment of amounts owed thereunder. The Encina Credit Facility has a three-year term. Availability on the Encina Credit Facility will be subject to a borrowing base calculation, based on, among other things, applicable advance rates (which vary from 50.0% to 75.0% of par or fair value depending on the type of loan asset) and the value of certain “eligible” loan assets included as part of the borrowing base. Funds may be borrowed at the greater of the prevailing one-month SOFR rate, plus an applicable effective margin of 4.25%. In addition, the Company will pay the lender a commitment fee of 0.75% per year (or 0.50% if the ratio of advances outstanding to aggregate commitments is greater than or equal to 50%) on the unused amount of the Encina Credit Facility.

 


Our borrowing base under the Encina Credit Facility is $88.3$87.3 million subject to the Encina Credit Facility cap of $65.0 million at MayAugust 31, 2023. For purposes of determining the borrowing base, most assets are assigned the values set forth in our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed with the SEC. Accordingly, the MayAugust 31, 2023 borrowing base relies upon the valuations set forth in the AnnualQuarterly Report on Form 10-K10-Q for the period ended February 28,May 31, 2023. The valuations presented in this Quarterly Report on Form 10-Q will not be incorporated into the borrowing base until after this Quarterly Report on Form 10-Q is filed with the SEC. 

 


SBA Debentures

 

OurThe Company’s wholly owned SBIC Subsidiaries are able to borrow funds from the SBA against regulatory capital (which approximates equity capital in the respective SBIC) and is subject to customary regulatory requirements including but not limited to, a periodic examination by the SBA.

Our wholly owned Subsidiaries,subsidiaries, SBIC LP, SBIC II LP, and SBIC III LP, received an SBIC licenselicenses from the SBA on March 28, 2012, August 14, 2019, and September 29, 2022, respectively. SBIC LP’s license providedprovides up to $150.0 million in additional long-term capital in the form of SBA debentures, while SBIC II LP’s and SBIC III LP’s SBIC licenses provide up to $175.0 million each. Under current SBIC regulations, for two or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $350.0 million. With the third license approval, Saratoga can continue to grow its SBA relationship from $150.0 million to $350.0 million of committed capital.

As of May 31, 2023, we have funded SBIC LP, SBIC II LP and SBIC III LP with an aggregate total of equity capital of $75.0 million, $87.5 million and $66.7 million, respectively, and have $202.0 million in SBA-guaranteed debentures outstanding, of which $27.0 million was held in SBIC LP, $175.0 million held was SBIC II LP and $0.0 million held in SBIC III LP.

 

SBICs are designed to stimulate the flow of private equity capital to eligible small businesses. Under SBA regulations, SBICs may make loans to eligible small businesses and invest in the equity securities of small businesses. Under present SBA regulations, eligible small businesses include businesses that have a tangible net worth not exceeding $24.0 million and have average annual fully taxed net income not exceeding $8.0 million for the two most recent fiscal years. In addition, an SBIC must devote 25.0% of its investment activity to “smaller enterprises’’enterprises” as defined by the SBA. A smaller enterprise is one that has a tangible net worth not exceeding $6.0 million and has average annual fully taxed net income not exceeding $2.0 million for the two most recent fiscal years. SBA regulations also provide alternative size standard criteria to determine eligibility, which depend on the industry in which the business is engaged and are based on such factors as the number of employees and gross sales. According to SBA regulations, SBICs may make long-term loans to small businesses, invest in the equity securities of such businesses and provide them with consulting and advisory services.

 

The Company’s wholly owned SBIC Subsidiaries are able to borrow funds from the SBA against each SBIC’s regulatory capital (which generally approximates equity capital in the respective SBIC). The SBIC Subsidiaries are subject to regulation and oversightcustomary regulatory requirements including but not limited to, a periodic examination by the SBA includingand requirements with respect to maintainingmaintain certain minimum financial ratios and other covenants. Receipt of an SBIC license does not assure that the SBIC Subsidiaries will receive SBA-guaranteed debenture funding, which is dependent upon the SBIC Subsidiaries continuing to be in compliancecomplying with SBA regulations and policies. The SBA, as a creditor, will have a superior claim to each SBIC Subsidiaries’ assets over ourthe Company’s stockholders and debtholders in the event we liquidatethat the Company liquidates such SBIC Subsidiary or the SBA exercises its remedies under the SBA-guaranteed debentures issued by the SBIC Subsidiary upon an event of default.

 


The Company received exemptive relief from the SEC to permit it to exclude the debt of ourthe SBIC subsidiaries guaranteed by the SBA from the definition of senior securities in the asset coverage test under the 1940 Act. This allows the Company increased flexibility under the asset coverage requirement by permitting it to borrow up to $350.0 million more than it would otherwise be able to absent the receipt of this exemptive relief. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, the board

As of directors, including a majorityAugust 31, 2023, SBIC LP, SBIC II LP and SBIC III LP had an aggregate total of the independent directorsequity capital of the Company approved of the Company becoming subject to a minimum asset coverage ratio of 150% from 200% under Sections 18(a)(1)$75.0 million, $87.5 million and 18(a)(2) of the Investment Company Act, as amended. The 150% asset coverage ratio became effective on April 16, 2019.$66.7 million, respectively, and had $189.0 million in SBA-guaranteed debentures collectively outstanding, with $0.0 million held in SBIC LP, $175.0 million held in SBIC II LP and $14.0 million held in SBIC III LP.

 

As noted above, as of MayAugust 31, 2023, there was $202.0$189.0 million of SBA debentures outstanding and as of February 28, 2023, there was $202.0 million of SBA debentures outstanding. The carrying amount of the amount outstanding of SBA debentures approximates its fair value, which is based on a waterfall analysis showing adequate collateral coverage and would be classified as a Level 3 liability within the fair value hierarchy. Financing costs of $5.0 million, $6.0 million, and $0.4 million related to the SBA debentures issued by SBIC LP, SBIC II LP and SBIC III LP, respectively, have been capitalized and are being amortized over the term of the commitment and drawdown. During the three months ended August 31, 2023, the Company repaid $27.0 million of SBA debentures, resulting in a realized loss on extinguishment of $0.1 million related to the acceleration of deferred debt financing costs.

 


For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recorded $1.5 million and $1.4$1.5 million of interest expense related to the SBA debentures, respectively. For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recorded $0.2$0.3 million and $0.2 million of amortization of deferred financing costs related to the SBA debentures, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. The weighted average interest rate during the three months ended MayAugust 31, 2023 and MayAugust 31, 2022 on the outstanding borrowings of the SBA debentures was 2.88%2.90% and 2.58%2.75%, respectively. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of SBA debentures outstanding was $202.0$202.6 million and $214.9$222.0 million, respectively.

For the six months ended August 31, 2023 and August 31, 2022, the Company recorded $2.9 million and $2.9 million of interest expense related to the SBA debentures, respectively. For the six months ended August 31, 2023 and August 31, 2022, the Company recorded $0.5 million and $0.5 million of amortization of deferred financing costs related to the SBA debentures, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. The weighted average interest rate during the six months ended August 31, 2023 and August 31, 2022 on the outstanding borrowings of the SBA debentures was 2.89% and 2.67%, respectively. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of SBA debentures outstanding was $202.3 million and $218.4 million, respectively.

 

Notes

On May 10, 2013, the Company issued $48.3 million in aggregate principal amount of 7.50% fixed-rate notes due 2020 (the “7.50% 2020 Notes”). The 20206.25% 2025 Notes were redeemed in full on January 13, 2017 and are no longer listed on the New York Stock Exchange (“NYSE”).

On May 29, 2015, the Company entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which the Company may offer for sale, from time to time, up to $20.0 million in aggregate principal amount of the 2020 Notes through an At-the-Market (“ATM”) offering. Prior to the 2020 Notes being redeemed in full, the Company had sold 539,725 units of the 7.50% 2020 Notes with a principal of $13.5 million at an average price of $25.31 for aggregate net proceeds of $13.4 million (net of transaction costs).

 

On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of our 6.25% fixed-rate notes due 2025 (the “6.25% 2025 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.3 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $5.0 million aggregate principal amount of 6.25% 2025 Notes within 30 days. The net proceeds from the offering were used for general corporate purposes in accordance with ourthe Company’s investment objective and strategies. Financing costs of $1.6 million related to the 6.25% 2025 Notes have been capitalized and were amortized over the term of the 6.25% 2025 Notes.

 

On February 5, 2019, the Company issued an additional $20.0 million in aggregate principal amount of the 6.25% 2025 Notes for net proceeds of $19.2 million after deducting underwriting commissions of approximately $0.6 million and discount of $0.2 million. Offering costs incurred were approximately $0.2 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $2.5 million aggregate principal amount of 6.25% 2025 Notes within 30 days. The additional 6.25% 2025 Notes were treated as a single series with the existing 6.25% 2025 Notes under the indenture and had the same terms as the existing 6.25% 2025 Notes. The net proceeds from this offering were used for general corporate purposes in accordance with ourthe Company’s investment objective and strategies. The financing costs and discount of $1.0 million related to the 6.25% 2025 Notes have been capitalized and are beingwere amortized over the term of the 6.25% 2025 Notes.

  


On August 31, 2021, the Company redeemed $60.0 million in aggregate principal amount of issued and outstanding 6.25% 2025 Notes. The 6.25% 2025 Notes were listed on the NYSE under the trading symbol of “SAF”, and have been delisted following the full redemption on August 31, 2021. As such, it was not fair valued with market quotes and is not fair value leveled. The repayment of the 6.25% 2025 Notes resulted in a realized loss on the extinguishment of debt of $1.5 million.

 

7.25% 2025 Notes

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

 


On July 14, 2022, the Company redeemed $43.1 million in aggregate principal amount of the issued and outstanding 7.25% 2025 Notes. The 7.25% 2025 Notes were listed on the NYSE under the trading symbol of “SAK” and have been delisted following the full redemption on July 14, 2022.

On July 14, 2022, the debt was extinguished. As such, it was not fair valued with market quotes and is not fair value leveled. The repayment of the 7.25% 2025 Notes resulted in a realized loss on the extinguishment of debt of $1.0 million.

 

 For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recorded $0.0 million and $0.8$0.4 million, respectively, of interest expense and $0.00 million and $0.08$0.04 million, respectively, of amortization of deferred financing costs related to the 7.25% 2025 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of the 7.25% 2025 Notes outstanding was $0.0 million and $43.1$10.8 million respectively. 

For the six months ended August 31, 2023 and August 31, 2022, the Company recorded $0.0 million and $1.2 million, respectively, of interest expense and $0.0 million and $0.1 million, respectively, of amortization of deferred financing costs related to the 7.25% 2025 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of the 7.25% 2025 Notes outstanding was $0.0 million and $27.0 million respectively. 

7.75% 2025 Notes

 

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

 

As of MayAugust 31, 2023, the total 7.75% 2025 Notes outstanding was $5.0 million. The 7.75% 2025 Notes are not listed and have a par value of $25.00 per note. The carrying amount of the amount outstanding of 7.75% 2025 Notes had a fair value of $4.9 million, which is based on a market yield analysis and would be classified as a Level 3 liability within the fair value hierarchy. As of February 28, 2023, the carrying amount and fair value of the 7.75% 2025 Notes was $5.0 million and $4.9 million, respectively.

 

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recorded $0.1 million and $0.1 million, respectively, of interest expense and $0.01 million and $0.01 million, respectively, of amortization of deferred financing costs related to the 7.75% 2025 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of 7.75% 2025 Notes outstanding was $5.0 million and $5.0 million respectively.

 

For the six months ended August 31, 2023 and August 31, 2022, the Company recorded $0.2 million and $0.2 million, respectively, of interest expense and $0.02 million and $0.02 million, respectively, of amortization of deferred financing costs related to the 7.75% 2025 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended August 31, 2023 and August 31, 2022, the average dollar amount of 7.75% 2025 Notes outstanding was $5.0 million and $5.0 million respectively.


 

6.25% 2027 Notes

 

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

 


On January 28, 2021, the Company issued $10.0 million aggregate principal amount of the 6.25% 2027 Notes for net proceeds of $9.7 million after deducting underwriting commissions of approximately $0.3 million. Offering costs incurred were approximately $0.1 million. Interest on the 6.25% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021. The 6.25% 2027 Notes mature on January 28, 2027 and commencing January 28, 2023, may be redeemed in whole or in part at any time or from time to time at ourthe Company’s option. The net proceeds from the offering were used for general corporate purposes in accordance with ourthe Company’s investment objective and strategies. Financing costs of $0.4 million related to the 6.25% 2027 Notes have been capitalized and are being amortized over the term of the 6.25% 2027 Notes. The 6.25% 2027 Notes are not listed and have a par value of $25.00 per note.

 

As of MayAugust 31, 2023, the total 6.25% 2027 Notes outstanding was $15.0 million. The 6.25% 2027 Notes are not listed and have a par value of $25.00 per note. The carrying amount of the amount outstanding of 6.25% 2027 Notes had a fair value of $13.8$13.9 million, which is based on a market yield analysis and would be classified as a Level 3 liability within the fair value hierarchy. As of February 28, 2023, the carrying amount and fair value of the 6.25% 2027 Notes was $15.0 million and $13.7 million, respectively.

 

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recorded $0.2 million and $0.2 million, respectively, of interest expense and $0.02 million and $0.02 million, respectively, of amortization of deferred financing costs related to the 6.25% 2027 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022 the average dollar amount of 6.25% 2027 Notes outstanding was $15.0 million and $15.0 million respectively.

 

For the six months ended August 31, 2023 and August 31, 2022, the Company recorded $0.5 million and $0.5 million, respectively, of interest expense and $0.04 million and $0.04 million, respectively, of amortization of deferred financing costs related to the 6.25% 2027 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2023 and August 31, 2022 the average dollar amount of 6.25% 2027 Notes outstanding was $15.0 million and $15.0 million respectively.

4.375% 2026 Notes

On March 10, 2021, the Company issued $50.0 million aggregate principal amount of our 4.375% fixed-rate Notesnotes due in 2026 (the “4.375% 2026 Notes”) for net proceeds of $49.0 million after deducting underwriting commissions of approximately $1.0 million. Offering costs incurred were approximately $0.3 million.  Interest on the 4.375% 2026 Notes is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.375% per year. The 4.375% 2026 Notes mature on February 28, 2026 and may be redeemed in whole or in part at any time on or after November 28, 2025 at par plus a “make-whole” premium, and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with ourthe Company’s investment objective and strategies. Financing costs of $1.3 million related to the 4.375% 2026 Notes have been capitalized and are being amortized over the term of the 4.375% 2026 Notes.

 

On July 15, 2021, the Company issued an additional $125.0 million aggregate principal amount of the Company’s 4.375% 2026 Notes (the “Additional 4.375% 2026 Notes”) for net proceeds for approximately $123.5$123.8 million, based on the public offering price of 101.00% of the aggregate principal amount of the Additional 4.375% 2026 Notes, after deducting the underwriting discountcommissions of $2.5 million and the offering payable by the Company.million. Offering costs incurred were approximately $0.2 million. The Additional 4.375% 2026 Notes are treated as a single series with the existing 4.375% 2026 Notes under the indenture and had the same terms as the existing 4.375% 2026 Notes. The net proceeds from the offering were used to redeem all of the outstanding 6.25% 2025 Notes (as described above), and for general corporate purposes in accordance with ourthe Company’s investment objective and strategies. Financing costs of $2.7 million have been capitalized and are being amortized over the term of the additional 4.375% 2026 Notes.

 

As of MayAugust 31, 2023, the total 4.375% 2026 Notes outstanding was $175.0 million. The 4.375% 2026 Notes are not listed and are issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. The carrying amount of the amount outstanding of 4.375% 2026 Notes had a fair value of $157.5$158.9 million, which is based on a market yield analysis and would be classified as a Level 3 liability within the fair value hierarchy. As of February 28, 2023, the carrying amount and fair value of the 4.375% 2026 Notes was $175.0 million and $156.1 million, respectively.

  


 

 

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recorded $1.9 million and $1.9 million, respectively, of interest expense, $0.2 million and $0.2 million, respectively, of amortization of deferred financing costs and $0.06 million and $0.05 million, respectively, of amortization of premium on issuance of 4.375% Notes due 2026 (inclusive of the issuance of the Additional 4.375% 2026 Notes). Interest expense, amortization of deferred financing costs and amortization of premium on issuance of notes are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of 4.375% 2026 Notes outstanding was $175.0 million and $175.0 million, respectively.

 

For the six months ended August 31, 2023 and August 31, 2022, the Company recorded $3.8 million and $3.8 million, respectively, of interest expense, $0.4 million and $0.4 million, respectively, of amortization of deferred financing costs and $0.1 million and $0.1 million, respectively, of amortization of premium on issuance of 4.375% Notes due 2026 (inclusive of the issuance of the Additional 4.375% 2026 Notes). Interest expense, amortization of deferred financing costs and amortization of premium on issuance of notes are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of 4.375% 2026 Notes outstanding was $175.0 million and $175.0 million, respectively.

4.35% 2027 Notes

On January 19, 2022, the Company issued $75.0 million aggregate principal amount of our 4.35% fixed-rate Notesnotes due in 2027 (the “4.35% 2027 Notes”) for net proceeds of $73.0 million, based on the public offering price of 99.317% of the aggregate principal amount of the 4.35% 2027 Notes, after deducting the underwriting commissions of approximately $1.5 million. Offering costs incurred were approximately $0.3 million. Interest on the 4.35% 2027 Notes is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.35% per year. The 4.35% 2027 Notes mature on February 28, 2027 and may be redeemed in whole or in part at the Company’s option at any time prior to November 28, 2026, at par plus a “make-whole” premium, and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with ourthe Company’s investment objective and strategies. Financing costs of $1.8 million related to the 4.35% 2027 Notes have been capitalized and are being amortized over the term of the 4.35% 2027 Notes.

 

As of MayAugust 31, 2023, the total 4.35% 2027 Notes outstanding was $75.0 million. The 4.35% 2027 Notes are not listed. The carrying amount of the amount outstanding of 4.35% 2027 Notes had a fair value of $65.1$65.7 million, which is based on a market yield analysis and would be classified as a Level 3 liability within the fair value hierarchy. As of February 28, 2023, the carrying amount and fair value of the 4.35% 2027 Notes was $75.0 million and $64.5 million, respectively.

 

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recorded $0.8 million and $0.8 million, respectively, of interest expense, and $0.1$0.09 million and $0.1$0.09 million, respectively, of amortization of discountdeferred financial costs and deferred financing costs$0.03 million and $0.03 million, respectively, of amortization of discount related to the 4.35% 2027 Notes. Interest expense and amortization of discount and deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of 4.35% 2027 Notes outstanding was $75.0 million and $75.0 million, respectively.

 

For the six months ended August 31, 2023 and August 31, 2022, the Company recorded $1.6 million and $1.6 million, respectively, of interest expense, $0.2 million and $0.2 million, respectively, of amortization of deferred financial costs and $0.06 million and $0.06 million, respectively, of amortization of discount related to the 4.35% 2027 Notes. Interest expense and amortization of discount and deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of 4.35% 2027 Notes outstanding was $75.0 million and $75.0 million, respectively.


6.00% 2027 Notes

On April 27, 2022, the Company issued $87.5 million in aggregate principal amount of our 6.00% fixed-rate notes due 2027 (the “6.00% 2027 Notes”) for net proceeds of $84.8 million after deducting underwriting commissions of approximately $2.7 million. Offering costs incurred were approximately $0.1 million. On May 10, 2022, the underwriters partially exercised their option to purchase an additional $10.0 million in aggregate principal amount of the 6.00% 2027 Notes. Net proceeds to the Company were $9.7 million after deducting underwriting commissions of approximately $0.3 million. Interest on the 6.00% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.00% per year. The 6.00% 2027 Notes mature on April 30, 2027 and commencing April 27, 2024, may be redeemed in whole or in part at any time or from time to time at ourthe Company’s option. The net proceeds from the offering were used for general corporate purposes in accordance with ourthe Company’s investment objective and strategies. Financing costs of $3.3 million related to the 6.00% 2027 Notes have been capitalized and are being amortized over the term of the 6.00% 2027 Notes. The 6.00% 2027 Notes are listed on the NYSE under the trading symbol “SAT” with a par value of $25.00 per note.

 

On August 15, 2022, the Company issued an additional $8.0 million in aggregate principal amount of the 6.00% 2027 Notes (the “Additional 6.00% 2027 Notes”) for net proceeds of $7.8 million, based on the public offering price of 97.80% of the aggregate principal amount of the 6.00% 2027 Notes. Additional offering costs incurred were approximately $0.2 million. The Additional 6.00% 2027 Notes are treated as a single series with the existing 6.00% 2027 Notes under the indenture and had the same terms as the existing 6.00% 2027 Notes. The net proceeds from the offering were used for general corporate purposes in accordance with ourthe Company’s investment objective and strategies. Additional financing costs of $0.2$0.3 million related to the 6.00% 2027 Notes have been capitalized and are being amortized over the term of the 6.00% 2027 Notes.

 

As of MayAugust 31, 2023, the carrying amount and fair value of the 6.00% 2027 Notes was $105.5 million and $97.5$99.0 million, respectively. The fair value of the 6.00% 2027 Notes, which are publicly traded, is based upon closing market quotes as of the measurement date and would be classified as a Level 1 liability within the fair value hierarchy. As of February 28, 2023, the carrying amount and fair value of the 6.00% 2027 Notes was $105.5 million and $100.4 million, respectively.

  


For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recorded $1.6 million and $0.5$1.7 million, respectively, of interest expense, and $0.2 million and $0.06$0.2 million, respectively, of amortization of discountdeferred financial costs and deferred financing costs$0.0 million and $0.0 million, respectively, of amortization of discount related to the 6.00% 2027 Notes. Interest expense and amortization of discount and deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of 6.00% 2027 Notes outstanding was $105.5 million and $99.0 million, respectively.

For the six months ended August 31, 2023 and August 31, 2022, we recorded $3.2 million and $2.2 million, respectively, of interest expense, $0.4 million and $0.2 million, respectively, of amortization of deferred financial costs and $0.0 million and $0.0 million, respectively, of amortization of discount related to the 6.00% 2027 Notes. Interest expense and amortization of discount and deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of 6.00% 2027 Notes outstanding was $105.5 million and $43.8 million, respectively.

 


7.00% 2025 Notes

On September 8, 2022, the Company issued $12.0 million in aggregate principal amount of our 7.00% fixed-rate notes due 2025 (the “7.00% 2025 Notes”) for net proceeds of $11.6 million after deducting customary fees and offering expensesunderwriting discounts of approximately $0.4 million. Additional offering costs incurred were approximately $0.05 million. Interest on the 7.00% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.00% per year. The 7.00% 2025 Notes mature on September 8, 2025 and commencing September 8, 2024, may be redeemed in whole or in part at any time or from time to time at ourthe Company’s option. The net proceeds from the offering were used for general corporate purposes in accordance with ourthe Company’s investment objective and strategies. Financing costs of $0.05$0.04 million related to the 7.00% 2025 Notes have been capitalized and are being amortized over the term of the 7.00% 2025 Notes.

 

As of MayAugust 31, 2023, the carrying amount of the 7.00% 2025 Notes was $12.0 million. The 7.00% 2025 Notes are not listed. The carrying amount of the outstanding 7.00% 2025 Notes had a fair value of $11.6 million, which is based on a market yield analysis and would be classified as a Level 3 liability within the fair value hierarchy. As of February 28, 2023, the carrying amount and fair value of the 7.00% 2025 Notes was $12.0 million and $12.0$11.5 million, respectively.

 

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recorded $0.2 million and $0.0 million, respectively, of interest expense, $0.0 million and $0.0 million, respectively, of amortization of deferred financial costs and $0.03 million and $0.0 million, respectively, of amortization of discount and deferred financing costs related to the 7.00% 2025 Notes. Interest expense and amortization of discount and deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of 7.00% 2025 Notes outstanding was $12.0 million and $0.0 million, respectively.

For the six months ended August 31, 2023 and August 31, 2022, the Company recorded $0.4 million and $0.0 million, respectively, of interest expense, $0.0 million and $0.0 million, respectively, of amortization of deferred financial costs and $0.05 million and $0.0 million, respectively, of amortization of discount related to the 7.00% 2025 Notes. Interest expense and amortization of discount and deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of 7.00% 2025 Notes outstanding was $12.0 million and $0.0 million, respectively.

8.00% 2027 Notes

  

On October 27, 2022, the Company issued $40.0 million in aggregate principal amount of our 8.00% fixed-rate notes due 2027 (the “8.00% 2027 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.2 million. On November 10, 2022, the underwriters partially exercised their option to purchase an additional $6.0 million in aggregate principal amount of the 8.00% 2027 Notes. Net proceeds to the Company were $5.8 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 8.00% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.00% per year, beginning February 28, 2023. The 8.00% 2027 Notes mature on October 31, 2027 and commencing October 27, 2024, may be redeemed in whole or in part at any time or from time to time at ourthe Company’s option. The net proceeds from the offering were used for general corporate purposes in accordance with ourthe Company’s investment objective and strategies. Financing costs of $1.7 million related to the 8.00% 2027 Notes have been capitalized and are being amortized over the term of the 8.00% 2027 Notes. The 8.00% 2027 Notes are listed on the NYSE under the trading symbol “SAJ” with a par value of $25.00 per note.

 

As of MayAugust 31, 2023, the carrying amount and fair value of the 8.00% 2027 Notes was $46.0 million and $45.6$46.2 million, respectively. The fair value of the 8.00% 2027 Notes, which are publicly traded, is based upon closing market quotes as of the measurement date and would be classified as a Level 1 liability within the fair value hierarchy. As of February 28, 2023, the carrying amount and fair value of the 8.00% 2027 Notes was $46.0 million and $46.4 million, respectively.

 


For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recorded $0.9 million and $0.0 million, respectively, of interest expense and $0.09 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 8.00% 2027 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of 8.00% 2027 Notes outstanding was $46.0 million and $0.0 million, respectively.

 

For the six months ended August 31, 2023 and August 31, 2022, the Company recorded $1.8 million and $0.0 million, respectively, of interest expense and $0.2 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 8.00% 2027 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of 8.00% 2027 Notes outstanding was $46.0 million and $0.0 million, respectively.

8.125% 2027 Notes

On December 13, 2022, the Company issued $52.5 million in aggregate principal amount of our 8.125% fixed-rate notes due 2027 (the “8.125% 2027 Notes”) for net proceeds of $50.8 million after deducting underwriting commissions of approximately $1.6 million. Offering costs incurred were approximately $0.1 million. On December 21, 2022, the underwriters partially exercised their option to purchase an additional $7.9 million in aggregate principal amount of its 8.125% 2027 Notes. Net proceeds to the Company were $7.6 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 8.125% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.125% per year, beginning February 28, 2023. The 8.125% 2027 Notes mature on December 31, 2027 and commencing December 13, 2024, may be redeemed in whole or in part at any time or from time to time at ourthe Company’s option. The net proceeds from this offering were used to make investments in middle-market companies (including investments made through our SBIC Subsidiaries) in accordance with ourthe Company’s investment objective and strategies and for general corporate purposes. Financing costs of $2.0 million related to the 8.125% 2027 Notes have been capitalized and are being amortized over the term of the 8.125% 2027 Notes. The 8.125% 2027 Notes are listed on the NYSE under the trading symbol “SAY” with a par value of $25.00 per share.

 


As of MayAugust 31, 2023, the carrying amount and fair value of the 8.125% 2027 Notes was $60.4 million and $59.0$60.4 million, respectively. The fair value of the 8.125% 2027 Notes, which are publicly traded, is based upon closing market quotes as of the measurement date and would be classified as a Level 1 liability within the fair value hierarchy. As of February 28, 2023, the carrying amount and fair value of the 8.125% 2027 Notes was $60.4 million and $61.1 million, respectively.

 

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recorded $1.2 million and $0.0 million, respectively, of interest expense and $0.1 million and $0.00$0.0 million, respectively, of amortization of deferred financing costs related to the 8.125% 2027 Notes. Interest expense and amortization of discount and deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022 the average dollar amount of 8.125% 2027 Notes outstanding was $60.4 million and $0.0 million respectively.

 

For the six months ended August 31, 2023 and August 31, 2022, the Company recorded $2.5 million and $0.0 million, respectively, of interest expense and $0.2 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 8.125% 2027 Notes. Interest expense and amortization of discount and deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2023 and August 31, 2022 the average dollar amount of 8.125% 2027 Notes outstanding was $60.4 million and $0.0 million respectively.

8.75% 2024 Notes

On March 31, 2023, the Company issued $10.0 million in aggregate principal amount of our 8.75% fixed-rate notes due 2024 (the “8.75% 2024 Notes”) for net proceeds of $9.7 million after deducting underwriting discounts of approximately $0.4 million. On May 1, 2023, the Company issued an additional $10.0 million in aggregate principal amount of the 8.75% 2024 Notes for net proceeds of $9.7 million after deducting underwriting discounts of approximately $0.4 million. Offering costs incurred were approximately $0.03 million. Interest on the 8.75% 2024 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.75% per year, beginning May 31, 2023.  The 8.75% 2024 Notes mature on March 31, 2024. Net proceeds from this offering were used to make investments in middle-market companies (including investments made through ourthe SBIC Subsidiaries) in accordance with ourthe Company’s investment objective and strategies and general corporate purposes. Financing costs and discounts of $0.7 million related to the 8.75% 2024 Notes have been capitalized and are being amortized over the term of the 8.75% 2024 Notes.

 


As of MayAugust 31, 2023, the total 8.75% 2024 Notes outstanding was $20.0 million. The 8.75% 2024 Notes are not listed. The carrying amount of the amount outstanding of 8.75% 2024 Notes had a fair value of $20.0 million, which is based on a market yield analysis and would be classified as a Level 3 liability within the fair value hierarchy. As of February 28, 2023, the carrying amount and fair value of the 8.75% 2024 Notes was $0.0 million and $0.0 million, respectively.

 

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recorded $0.2$0.4 million and $0.0 million, respectively, of interest expense, and $0.1$0.0 million and $0.00$0.0 million, respectively, of amortization of discountdeferred financial costs and deferred financing costs$0.2 million and $0.0 million, respectively, of amortization of discount related to the 8.75% 2024 Notes. Interest expense and amortization of discount and deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022 the average dollar amount of 8.75% 2024 Notes outstanding was $10.0$20.0 million and $0.0 million respectively.

 

For the six months ended August 31, 2023 and August 31, 2022, the Company recorded $0.7 million and $0.0 million, respectively, of interest expense, $0.0 million and $0.0 million, respectively, of amortization of deferred financial costs and $0.3 million and $0.0 million, respectively, of amortization of discount related to the 8.75% 2024 Notes. Interest expense and amortization of discount and deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2023 and August 31, 2022 the average dollar amount of 8.75% 2024 Notes outstanding was $15.0 million and $0.0 million respectively.

8.50% 2028 Notes

On April 14, 2023, the Company issued $50.0 million in aggregate principal amount of our 8.50% fixed-rate notes due 2028 (the “8.50% 2028 Notes”) for net proceeds of $48.4 million after deducting underwriting commissions of approximately $1.6 million. Offering costs incurred were approximately $0.03 million. On April 26, 2023, the underwriters fully exercised their option to purchase an additional $7.5 million in aggregate principal amount of the 8.50% 2028 Notes. Net proceeds to the Company were $7.3 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 8.50% 2028 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.50% per year, beginning May 31, 2023.  The 8.50% 2028 Notes mature on April 15, 2028, and commencing April 14, 2025, may be redeemed in whole or in part at any time or from time to time at ourthe Company’s option. Net proceeds from this offering were used to repay a portion of the outstanding indebtedness under the Encina Credit Facility, make investments in middle-market companies (including investments made through our SBIC Subsidiaries) in accordance with ourthe Company’s investment objective and strategies and for general corporate purposes. Financing costs of $2.0 million related to the 8.50% 2028 Notes have been capitalized and are being amortized over the term of the 8.50% 2028 Notes. The 8.50% 2028 Notes are listed on the NYSE under the trading symbol “SAZ” with a par value of $25.00 per share.

 

As of MayAugust 31, 2023, the carrying amount and fair value of the 8.50% 2028 Notes was $57.5 million and $56.8$57.8 million, respectively. The fair value of the 8.50% 2028 Notes, which are publicly traded, is based upon closing market quotes as of the measurement date and would be classified as a Level 1 liability within the fair value hierarchy. As of February 28, 2023, the carrying amount and fair value of the 8.50% 2028 Notes was $0.0 million and $0.0 million, respectively.

 

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company recorded $0.7$1.2 million and $0.0 million, respectively, of interest expense and $0.05$0.1 million and $0.00$0.0 million, respectively, of amortization of deferred financing costs related to the 8.50% 2028 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022 the average dollar amount of 8.50% 2028 Notes outstanding was $28.4$57.5 million and $0.0 million respectively.

For the six months ended August 31, 2023 and August 31, 2022, the Company recorded $1.9 million and $0.0 million, respectively, of interest expense and $0.2 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 8.50% 2028 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2023 and August 31, 2022 the average dollar amount of 8.50% 2028 Notes outstanding was $42.9 million and $0.0 million respectively.

 


 

SENIOR SECURITIES

(dollar amounts in thousands, except per share data)

Class and Year (1)(2) Total
Amount
Outstanding
Exclusive of
Treasury
Securities(3)		 Asset
Coverage
per Unit(4)		 Involuntary
Liquidating
Preference per
Share(5)		 Average
Market
Value per
Share(6)		  Total
Amount
Outstanding
Exclusive of
Treasury
Securities(3)		 Asset
Coverage
per Unit(4)		 Involuntary
Liquidating
Preference per
Share(5)		 Average
Market
Value per
Share(6)		 
 (in thousands)  (in thousands) 
Credit Facility with Encina Lender Finance, LLC                  
Fiscal year 2024 (as of May 31, 2023) $35,000  $1,557        -   N/A 
Fiscal year 2024 (as of August 31, 2023) $35,000  $1,597             -   N/A 
Fiscal year 2023 (as of February 28, 2023) $32,500  $1,659   -   N/A  $32,500  $1,659   -   N/A 
Fiscal year 2022 (as of February 28, 2022) $12,500  $2,093   -   N/A 
Credit Facility with Madison Capital Funding(14)                
Fiscal yaer 2022 (as of February 28, 2022) $12,500  $2,093   -   N/A 
Credit Facility with Madison Capital Funding(14)                
Fiscal year 2021 (as of February 28, 2021) $-  $3,471   -   N/A  $-  $3,471   -   N/A 
Fiscal year 2020 (as of February 29, 2020) $-  $6,071   -   N/A  $-  $6,071   -   N/A 
Fiscal year 2019 (as of February 28, 2019) $-  $2,345   -   N/A  $-  $2,345   -   N/A 
Fiscal year 2018 (as of February 28, 2018) $-  $2,930   -   N/A  $-  $2,930   -   N/A 
Fiscal year 2017 (as of February 28, 2017) $-  $2,710   -   N/A  $-  $2,710   -   N/A 
Fiscal year 2016 (as of February 29, 2016) $-  $3,025   -   N/A  $-  $3,025   -   N/A 
Fiscal year 2015 (as of February 28, 2015) $9,600  $3,117   -   N/A  $9,600  $3,117   -   N/A 
Fiscal year 2014 (as of February 28, 2014) $-  $3,348   -   N/A  $-  $3,348   -   N/A 
Fiscal year 2013 (as of February 28, 2013) $24,300  $5,421   -   N/A  $24,300  $5,421   -   N/A 
Fiscal year 2012 (as of February 29, 2012) $20,000  $5,834   -   N/A  $20,000  $5,834   -   N/A 
Fiscal year 2011 (as of February 28, 2011) $4,500  $20,077   -   N/A  $4,500  $20,077   -   N/A 
Fiscal year 2010 (as of February 28, 2010) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2009 (as of February 28, 2009) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2008 (as of February 29, 2008) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2007 (as of February 28, 2007) $-  $-   -   N/A  $-  $-   -   N/A 
7.50% Notes due 2020(7)                
7.50% Notes due 2020(7)                
Fiscal year 2017 (as of February 28, 2017) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2016 (as of February 29, 2016) $61,793  $3,025   -  $25.24(8) $61,793  $3,025   -  $25.24(8)
Fiscal year 2015 (as of February 28, 2015) $48,300  $3,117   -  $25.46(8) $48,300  $3,117   -  $25.46(8)
Fiscal year 2014 (as of February 28, 2014) $48,300  $3,348   -  $25.18(8) $48,300  $3,348   -  $25.18(8)
Fiscal year 2013 (as of February 28, 2013) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2012 (as of February 29, 2012) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2011 (as of February 28, 2011) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2010 (as of February 28, 2010) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2009 (as of February 28, 2009) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2008 (as of February 29, 2008) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2007 (as of February 28, 2007) $-  $-   -   N/A  $-  $-   -   N/A 
6.75% Notes due 2023(9)                
6.75% Notes due 2023(9)                
Fiscal year 2020 (as of February 29, 2020) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2019 (as of February 28, 2019) $74,451  $2,345   -  $25.74(10) $74,451  $2,345   -  $25.74(10)
Fiscal year 2018 (as of February 28, 2018) $74,451  $2,930   -  $26.05(10) $74,451  $2,930   -  $26.05(10)
Fiscal year 2017 (as of February 28, 2017) $74,451  $2,710   -  $25.89(10) $74,451  $2,710   -  $25.89(10)
8.75% Notes due 2024                                
Fiscal year 2024 (as of May 31, 2023) $20,000  $1,557   -  $1,000.00(12)
6.25% Notes due 2025(13)                
Fiscal year 2024 (as of August 31, 2023) $20,000  $1,597   -  $25.00(12)
6.25% Notes due 2025(13)                
Fiscal year 2022 (as of February 28, 2022)  -   -   -    N/A   -   -   -   N/A 
Fiscal year 2021 (as of February 28, 2021) $60,000  $3,471   -  $24.24(11) $60,000  $3,471   -  $24.24(11)
Fiscal year 2020 (as of February 29, 2020) $60,000  $6,071   -  $25.75(11) $60,000  $6,071   -  $25.75(11)
Fiscal year 2019 (as of February 28, 2019) $60,000  $2,345   -  $24.97(11) $60,000  $2,345   -  $24.97(11)
7.00% Notes due 2025                                
Fiscal year 2024 (as of May 31, 2023) $12,000  $1,557   -  $25.00(12)
Fiscal year 2024 (as of August 31, 2023) $12,000  $1,597   -  $25.00(12)
Fiscal year 2023 (as of February 28, 2023) $12,000  $1,659   -  $25.00(12) $12,000  $1,659   -  $25.00(12)
7.25% Notes due 2025(17)                
7.25% Notes due 2025(17)                
Fiscal year 2023 (as of February 28, 2023)  -   -   -    N/A   -   -   -   N/A 
Fiscal year 2022 (as of February 28, 2022) $43,125  $2,093   -  $25.46(11) $43,125  $2,093   -  $25.46(11)
Fiscal year 2021 (as of February 28, 2021) $43,125  $3,471   -  $25.77(11) $43,125  $3,471   -  $25.77(11)
7.75% Notes due 2025                                
Fiscal year 2024 (as of May 31, 2023) $5,000  $1,557   -  $25.00(12)
Fiscal year 2024 (as of August 31, 2023) $5,000  $1,597   -  $25.00(12)
Fiscal year 2023 (as of February 28, 2023) $5,000  $1,659   -  $25.00(12) $5,000  $1,659   -  $25.00(12)
Fiscal year 2022 (as of February 28, 2022) $5,000  $2,093   -  $25.00(12) $5,000  $2,093   -  $25.00(12)
Fiscal year 2021 (as of February 28, 2021) $5,000  $3,471   -  $25.00(12) $5,000  $3,471   -  $25.00(12)
4.375% Notes due 2026                                
Fiscal year 2024 (as of May 31, 2023) $175,000  $1,557   -  $25.00(12)
Fiscal year 2024 (as of August 31, 2023) $175,000  $1,597   -  $25.00(12)
Fiscal year 2023 (as of February 28, 2023) $175,000  $1,659   -  $25.00(12) $175,000  $1,659   -  $25.00(12)
Fiscal year 2022 (as of February 28, 2022) $175,000  $2,093   -  $25.00(12) $175,000  $2,093   -  $25.00(12)
4.35% Notes due 2027                                
Fiscal year 2024 (as of May 31, 2023) $75,000  $1,557   -  $25.00(12)
Fiscal year 2024 (as of August 31, 2023) $75,000  $1,597   -  $25.00(12)
Fiscal year 2023 (as of February 28, 2023) $75,000  $1,659   -  $25.00(12) $75,000  $1,659   -  $25.00(12)
Fiscal year 2022 (as of February 28, 2022) $75,000  $2,093   -  $25.00(12) $75,000  $2,093   -  $25.00(12)
6.00% Notes due 2027                                
Fiscal year 2024 (as of May 31, 2023) $105,500  $1,557   -  $23.24(15)
Fiscal year 2024 (as of August 31, 2023) $105,500  $1,597   -  $23.31(15)
Fiscal year 2023 (as of February 28, 2023) $105,500  $1,659   -  $23.97(15) $105,500  $1,659   -  $23.97(15)
6.25% Notes due 2027                                
Fiscal year 2024 (as of May 31, 2023) $15,000  $1,557   -  $25.00(12)
Fiscal year 2024 (as of August 31, 2023) $15,000  $1,597   -  $25.00(12)
Fiscal year 2023 (as of February 28, 2023) $15,000  $1,659   -  $25.00(12) $15,000  $1,659   -  $25.00(12)
Fiscal year 2022 (as of February 28, 2022) $15,000  $2,093   -  $25.00(12) $15,000  $2,093   -  $25.00(12)
Fiscal year 2021 (as of February 28, 2021) $15,000  $3,471   -  $25.00(12) $15,000  $3,471   -  $25.00(12)
8.00% Notes due 2027                                
Fiscal year 2024 (as of May 31, 2023) $46,000  $1,557   -  $24.86(15)
Fiscal year 2024 (as of August 31, 2023) $46,000  $1,597   -  $24.92(15)
Fiscal year 2023 (as of February 28, 2023) $46,000  $1,659   -  $25.08(15) $46,000  $1,659   -  $25.08(15)
8.125% Notes due 2027                                
Fiscal year 2024 (as of May 31, 2023) $60,375  $1,557   -  $24.88(15)
Fiscal year 2024 (as of August 31, 2024) $60,375  $1,597   -  $24.93(15)
Fiscal year 2023 (as of February 28, 2023) $60,375  $1,659   -  $25.10(15) $60,375  $1,659   -  $25.10(15)
8.50% Notes due 2028                                
Fiscal year 2024 (as of May 31, 2023) $57,500  $1,557   -  $24.91(16)
Fiscal year 2024 (as of August 31, 2023) $57,500  $1,597   -  $25.03(16)

 

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


 

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

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

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

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

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

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

(8)Based on the average daily trading price of the 7.50% 2020 Notes on the NYSE.

(9)On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.45 million, respectively, in aggregate principal amount of the $74.45 million in aggregate principal amount of issued and outstanding 6.75% 2023 Notes.

(10)Based on the average daily trading price of the 6.75% 2023 Notes on the NYSE.

(11)Based on the average daily trading price of the 6.25% 2025 Notes on the NYSE.

(12)The carrying value of this unlisted security approximates itsBased on a market yield analysis and would be classified as a Level 3 liability within the fair value based on a waterfall analysis showing adequate collateral coverage.hierarchy.

 

(13)On August 31, 2021, the Company redeemed $60.0 million in aggregate principal amount of the issued and outstanding 6.25% 2025 Notes. The Company used a portion of the net proceeds from the 4.375% 2026 Notes offering, which was completed in July 2021, to redeem the 6.25% 2025 Notes in full.

(14)On October 4, 2021, the Company repaid all remaining amounts outstanding under the Madison Credit Facility and the credit agreement relating to the Madison Credit Facility was terminated.

(15)Based on the average daily trading price of the 6.00% 2027 Notes on the NYSE.

(16)Based on the average daily trading price of the 8.50% 2028 Notes on the NYSE.

(17)On July 14, 2022, the Company redeemed $43.1 million in aggregate principal amount of the issued and outstanding 7.25% 2025 Notes.

 


 

 

Note 9. Commitments and Contingencies

 

Contractual Obligations

 

The following table shows our payment obligations for repayment of debt and other contractual obligations at MayAugust 31, 2023:

 

    Payment Due by Period     Payment Due by Period 
Long-Term Debt Obligations Total  Less Than
1 Year		  1 - 3
Years		  3 - 5
Years		  More Than
5 Years		  Total  Less Than
1 Year		  1 - 3
Years		  3 - 5
Years		  More Than
5 Years		 
 ($ in thousands)  ($ in thousands) 
Encina credit facility $35,000  $-  $35,000  $-  $-  $35,000  $-  $35,000  $-  $- 
SBA debentures  202,000   -   27,000   -   175,000   189,000   -   -   -   189,000 
8.75% 2024 Notes  20,000   20,000   -   -   -   20,000   20,000   -   -   - 
7.00% 2025 Notes  12,000   -   12,000   -   - 
6.00% 2025 Notes  12,000   -   12,000   -   - 
7.75% 2025 Notes  5,000   -   5,000   -   -   5,000   -   5,000   -   - 
4.375% 2026 Notes  175,000   -   175,000   -   -   175,000   -   175,000   -   - 
4.35% 2027 Notes  75,000   -   -   75,000   -   75,000   -   -   75,000   - 
6.00% 2027 Notes  105,500   -   -   105,500   -   105,500   -   -   105,500   - 
6.25% 2027 Notes  15,000   -   -   15,000   -   15,000   -   -   15,000   - 
8.00% 2027 Notes  46,000   -   -   46,000   -   46,000   -   -   46,000   - 
8.125% 2027 Notes  60,375   -   -   60,375   -   60,375   -   -   60,375   - 
8.50% 2028 Notes  57,500   -   -   57,500   -   57,500   -   -   57,500   - 
Total Long-Term Debt Obligations $808,375  $20,000  $254,000  $359,375  $175,000  $795,375  $20,000  $227,000  $359,375  $189,000 

 

Off-Balance Sheet Arrangements

 

As of MayAugust 31, 2023 and February 28, 2023, the Company’s off-balance sheet arrangements consisted of $143.0$140.6 million and $108.8 million, respectively, of unfunded commitments outstanding to provide debt financing to its portfolio companies or to fund limited partnership interests. Such commitments are generally up to the Company’s discretion to approve, or the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’s consolidated statements of assets and liabilities and are not reflected in the Company’s consolidated statements of assets and liabilities.

 


 

 

A summary of the unfunded commitments outstanding as of MayAugust 31, 2023:2023 and February 28, 2023:2023 is shown in the table below (dollars in thousands):

 

 May 31,
2023		  February 28,
2023		  August 31,
2023		  February 28,
2023		 
At Company’s discretion          
ActiveProspect, Inc. $10,000  $10,000  $10,000  $10,000 
Artemis Wax Corp.  23,500   - 
Ascend Software, LLC  5,000   5,000   5,000   5,000 
Granite Comfort, LP  750   15,000   750   15,000 
JDXpert  5,000   5,000   5,000   5,000 
LFR Chicken LLC  4,000   4,000   4,000   4,000 
Pepper Palace, Inc.  3,000   3,000   3,000   3,000 
Procurement Partners, LLC  4,250   4,250   4,250   4,250 
Saratoga Senior Loan Fund I JV, LLC  8,548   8,548   8,548   8,548 
Sceptre Hospitality Resources, LLC  5,000   5,000   5,000   5,000 
Stretch Zone Franchising, LLC  3,750   -   3,750   - 
VetnCare MSO, LLC  10,000   -   10,000   - 
Total $59,298  $59,798  $82,798  $59,798 
                
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required                
Alpha Aesthetics Partners OpCo, LLC $8,600  $-  $4,844  $- 
ARC Health OpCo LLC  5,463   10,773   259   10,773 
Artemis Wax Corp.  8,500   8,500   -   8,500 
Ascend Software, LLC  3,200   3,200   1,500   3,200 
Axero Holdings, LLC - Revolver  500   500   500   500 
BQE Software, Inc.  4,000   -   3,250   - 
C2 Educational Systems  3,000   - 
C2 Educational Systems, Inc.  3,000   - 
Davisware, LLC  1,500   - 
Exigo, LLC  4,167   4,167   4,167   4,167 
Exigo, LLC - Revolver  1,042   833   1,042   833 
Gen4 Dental Partners Holdings, LLC  9,186   11,000   3,367   11,000 
GoReact  1,000   2,500   1,250   2,500 
JDXpert  -   1,000   -   1,000 
Inspect Point Holding, LLC  1,500     
Modis Dental Partners OpCo, LLC  7,500   -   7,500   - 
Pepper Palace, Inc. - Delayed Draw Term Loan  2,000   2,000 
Pepper Palace, Inc.  -   2,000 
Pepper Palace, Inc. - Revolver  2,500   2,500   2,500   2,500 
Procurement Partners, LLC  1,000   1,000   -   1,000 
Stretch Zone Franchising, LLC  1,500   -   1,500   - 
VetnCare MSO, LLC  19,500   -   19,500   - 
Zollege PBC  1,000   1,000   575   1,000 
  83,658   48,973   57,754   48,973 
Total $142,956  $108,771  $140,552  $108,771 

 

The Company believes its assets will provide adequate coverage to satisfy these unfunded commitments. As of MayAugust 31, 2023, the Company had May 31, 2023, the Company had total cash and cash equivalents and cash and cash equivalents, reserve accounts of $53.2$48.4 million and $30.0 million in available borrowings under the Encina Credit Facility.

 


 

 

Note 10. Directors Fees

 

The independent directors each receive an annual fee of $70,000. They also receive $3,000 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each board meeting and receive $1,500 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each committee meeting. In addition, the chairman of the Audit Committee receives an annual fee of $12,500 and the chairman of each other committee receives an annual fee of $6,000 for their additional services in these capacities. In addition, we have purchased directors’ and officers’ liability insurance on behalf of our directors and officers. Independent directors have the option to receive their directors’ fees in the form of our common stock issued at a price per share equal to the greater of NAV or the market price at the time of payment. No compensation is paid to directors who are “interested persons” of the Company (as defined in Section 2(a)(19) of the 1940 Act). For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, wethe Company incurred $0.09$0.1 million and $0.1 million for directors’ fees and expenses, respectively. For the six months ended August 31, 2023 and August 31, 2022, the Company incurred $0.2 million and $0.2 million for directors’ fees and expenses, respectively. As of MayAugust 31, 2023 and February 28, 2023, $0.0 million and $0.01 million in directors’ fees and expenses were accrued and unpaid, respectively. As of MayAugust 31, 2023, wethe Company had not issued any common stock to our directors as compensation for their services.

 

Note 11. Stockholders’ Equity

 

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

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

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

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

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

On September 24, 2014, the Company announced the approval of an open market share repurchase plan that originally allowed it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published consolidated financial statements (the “Share Repurchase Plan”). Since September 24, 2014, the Share Repurchase Plan has been extended annually, and the Company has periodically increased the amount of shares of common stock that may be purchased under the Share Repurchase Plan.  Most recently, on January 9, 2023, ourthe Company’s board of directors extended the Share Repurchase Plan for another year to January 15, 2024, increasing the number of shares that may be repurchased under the Share Repurchase Plan to 1.7 million shares of common stock. As of MayAugust 31, 2023, the Company had purchased 1,035,203 shares of common stock, at the average price of $22.05 for approximately $22.8 million pursuant to the Share Repurchase Plan. During the three months ended MayAugust 31, 2023 the Company did not purchase any shares of common stock pursuant to the Share Repurchase Plan. During the six months ended August 31, 2023 the Company purchased 88,576 shares of common stock, at the average price $24.36 for approximately $2.2 million pursuant to the Share Repurchase Plan.

 

On March 16, 2017, wethe Company entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc., through which we may offerthe Company offered for sale, from time to time, up to $30.0 million of ourthe Company’s common stock through an ATM offering. Subsequent to this, BB&T Capital Markets and B. Riley FBR, Inc. were also added to the agreement. On July 11, 2019, the amount of the common stock to be offered was increased to $70.0 million, and on October 8, 2019, the amount of the common stock to be offered was increased to $130.0 million. This agreement was terminated as of July 29, 2021, and as of that date, the Company had sold 3,922,018 shares for gross proceeds of $97.1 million at an average price of $24.77 for aggregate net proceeds of $95.9 million (net of transaction costs).

 

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

 

On July 30, 2021, wethe Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Ladenburg Thalmann & Co. Inc. and Compass Point Research and Trading, LLC (collectively the “Agents”), through which wethe Company may offer for sale, from time to time, up to $150.0 million of ourthe Company’s common stock through the Agents, or to them, as principal for their account (the “ATM Program”).

On July 6, 2023, the Equity Distribution Agreement was amended to increase the maximum amount of shares of our common stock to be sold through the ATM Program to $300.0 million from $150.0 million, and on July 19, 2023, the Equity Distribution Agreement was amended to add an additional distribution agent, Raymond James & Associates. The sales price per share of the Company’s common stock offered under the ATM Program, less the Agents’ commission, will not be less than the NAV per share of the Company’s common stock at the time of such sale. Consistent with the terms of the ATM Program, the Manager may, from time to time and in its sole discretion, contribute proceeds necessary to ensure that no sales are made at a price below the then-current NAV per share.

As of MayAugust 31, 2023, the Company sold 4,840,3615,692,773 shares for gross proceeds of $124.0$148.3 million at an average price of $25.61$26.06 for aggregate net proceeds of $122.4$146.8 million (net of transaction costs). During the three months ended MayAugust 31, 2023, there were nothe Company sold 852,412 shares for gross proceeds of $24.3 million at an average price of $28.56 for aggregate net proceeds of $24.3 million (net of transaction costs). During the six months ended August 31, 2023, the Company sold pursuant852,412 shares for gross proceeds of $24.3 million at an average price of $28.56 for aggregate net proceeds of $24.3 million (net of transaction costs). The Manager agreed to reimburse the Company to the equity distribution agreement withextent the Agents.per share price of the shares to the public, less underwriting fees, was less than net asset value per share. For the three months ended August 31, 2023, the Manager reimbursed the Company $2.1 million. For the six months ended August 31, 2023, the Manager reimbursed the Company $2.1 million.

 


 

 

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

 

       Total           Total    
 Common Stock  Capital
in Excess		  Distributable
Earnings		     Common Stock Capital
in Excess		 Distributable
Earnings		    
 Shares  Amount of Par Value  (Loss)  Net Assets  Shares Amount of Par Value (Loss) Net Assets 
Balance at February 28, 2022 12,131,350  $12,131  $ 328,062,246  $27,706,146  $355,780,523  12,131,350  $12,131  $328,062,246  $ 27,706,146  $ 355,780,523 
Increase (Decrease) from Operations:                      
Net investment income  -   -   -   7,976,222   7,976,222   -   -   -   7,976,222   7,976,222 
Net realized gain (loss) from investments  -   -   -   162,509   162,509   -   -   -   162,509   162,509 
Income tax (provision) benefit from realized gain on investments  -   -   -   69,250   69,250   -   -   -   69,250   69,250 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (9,333,449)  (9,333,449)  -   -   -   (9,333,449)  (9,333,449)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (361,951)  (361,951)  -   -   -   (361,951)  (361,951)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (6,428,817)  (6,428,817)  -   -   -   (6,428,817)  (6,428,817)
Capital Share Transactions:                                        
Proceeds from issuance of common stock  -   -   -   -   - 
Stock dividend distribution  42,825   43   1,108,637   -   1,108,680   42,825   43   1,108,637   -   1,108,680 
Repurchases of common stock  (142,177)  (142)  (3,734,174)  -   (3,734,316)  (142,177)  (142)  (3,734,174)  -   (3,734,316)
Repurchase fees  -   -   (2,840)  -   (2,840)  -   -   (2,840)  -   (2,840)
Offering costs  -   -   -   -   - 
Balance at May 31, 2022  12,031,998  $12,032  $325,433,869  $19,789,910  $345,235,811   12,031,998  $12,032  $325,433,869  $19,789,910  $345,235,811 
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   7,698,014   7,698,014   -   -   -   7,698,014   7,698,014 
Net realized gain (loss) from investments  -   -   -   7,943,838   7,943,838   -   -   -   7,943,838   7,943,838 
Realized losses on extinguishment of debt  -   -   -   (1,204,809)  (1,204,809)  -   -   -   (1,204,809)  (1,204,809)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (13,258,456)  (13,258,456)  -   -   -   (13,258,456)  (13,258,456)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (230,154)  (230,154)  -   -   -   (230,154)  (230,154)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (6,369,981)  (6,369,981)  -   -   -   (6,369,981)  (6,369,981)
Capital Share Transactions:                                        
Stock dividend distribution  48,590   49   1,088,139   -   1,088,188   48,590   49   1,088,139   -   1,088,188 
Repurchases of common stock  (153,350)  (154)  (3,685,951)  -   (3,686,105)  (153,350)  (154)  (3,685,951)  -   (3,686,105)
Repurchase fees  -   -   (3,071)  -   (3,071)  -   -   (3,071)  -   (3,071)
Balance at August 31, 2022  11,927,238  $11,927  $322,832,986  $14,368,362  $337,213,275   11,927,238  $11,927  $322,832,986  $14,368,362  $337,213,275 
                                        
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   9,877,437   9,877,437   -   -   -   9,877,437   9,877,437 
Net realized gain (loss) from investments  -   -   -   (740,434)  (740,434)  -   -   -   (740,434)  (740,434)
Income tax (provision) benefit from realized gain on investments  -   -   -   479,318   479,318   -   -   -   479,318   479,318 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (3,176,208)  (3,176,208)  -   -   -   (3,176,208)  (3,176,208)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (425,848)  (425,848)  -   -   -   (425,848)  (425,848)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (6,433,298)  (6,433,298)  -   -   -   (6,433,298)  (6,433,298)
Capital Share Transactions:                                        
Stock dividend distribution  52,312   53   1,150,881   -   1,150,934   52,312   53   1,150,881   -   1,150,934 
Repurchases of common stock  (94,071)  (95)  (2,179,600)  -   (2,179,695)  (94,071)  (95)  (2,179,600)  -   (2,179,695)
Repurchase fees  -   -   (1,881)  -   (1,881)  -   -   (1,881)  -   (1,881)
Balance at November 30, 2022  11,885,479  $11,885  $321,802,386  $13,949,329  $335,763,600   11,885,479  $11,885  $321,802,386  $13,949,329  $335,763,600 
                    
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   9,649,474   9,649,474   -   -   -   9,649,474   9,649,474 
Net realized gain (loss) from investments  -   -   -   80,683   80,683   -   -   -   80,683   80,683 
Realized losses on extinguishment of debt  -   -   -   (382,274)  (382,274)  -   -   -   (382,274)  (382,274)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   10,549,981   10,549,981   -   -   -   10,549,981   10,549,981 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (697,380)  (697,380)  -   -   -   (697,380)  (697,380)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (8,081,306)  (8,081,306)  -   -   -   (8,081,306)  (8,081,306)
Capital Share Transactions:                                        
Stock dividend distribution  53,615   55   1,300,405   -   1,300,460   53,615   55   1,300,405   -   1,300,460 
Repurchases of common stock  (48,594)  (49)  (1,224,175)  -   (1,224,224)  (48,594)  (49)  (1,224,175)  -   (1,224,224)
Repurchase fees  -   -   (972)  -   (972)  -   -   (972)  -   (972)
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles  -   -   16,162   (16,162)  -   -   -   16,162   (16,162)  - 
Balance at February 28, 2023  11,890,500  $11,891  $321,893,806  $25,052,345  $346,958,042   11,890,500  $11,891  $321,893,806  $25,052,345  $346,958,042 
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   15,958,950   15,958,950   -   -   -   15,958,950   15,958,950 
Net realized gain (loss) from investments  -   -   -   90,691   90,691   -   -   -   90,691   90,691 
Income tax (provision) benefit from realized gain on investments  -   -   -   -   -   -   -   -   -   - 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (16,322,307)  (16,322,307)  -   -   -   (16,322,307)  (16,322,307)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   59,407   59,407   -   -   -   59,407   59,407 
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (8,193,402)  (8,193,402)  -   -   -   (8,193,402)  (8,193,402)
Capital Share Transactions:                                        
Stock dividend distribution  45,818   47   1,058,797   -   1,058,844   45,818   47   1,058,797   -   1,058,844 
Repurchases of common stock  (88,576)  (90)  (2,157,515)  -   (2,157,605)  (88,576)  (90)  (2,157,515)  -   (2,157,605)
Repurchase fees  -   -   (1,772)  -   (1,772)  -   -   (1,772)  -   (1,772)
Balance at May 31, 2023  11,847,742  $11,848  $320,793,316  $16,645,684  $337,450,848   11,847,742  $11,848  $320,793,316  $16,645,684  $337,450,848 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   13,964,784   13,964,784 
Realized losses on extinguishment of debt  -   -   -   (110,056)  (110,056)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (5,737,571)  (5,737,571)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (221,206)  (221,206)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (8,352,335)  (8,352,335)
Capital Share Transactions:                    
Proceeds from issuance of common stock  852,412   852   24,334,126   -   24,334,978 
Stock dividend distribution  29,627   30   749,283   -   749,313 
Balance at August 31, 2023  12,729,781  $12,730  $345,876,725  $16,189,300  $362,078,755 

 


 

  

Note 12. Earnings Per Share

 

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

 

The following information sets forth the computation of the weighted average basic and diluted net increase (decrease) in net assets resulting from operations per share for the three and six months ended MayAugust 31, 2023 and MayAugust 31, 2022 (dollars in thousands except share and per share amounts):

 

 For the three months ended  For the three months ended  For the six months ended 
Basic and Diluted May 31,
2023		  May 31,
2022		  August 31,
2023		  August 31,
2022		  August 31,
2023		  August 31,
2022		 
Net increase (decrease) in net assets resulting from operations $(213) $(1,487) $7,896  $948  $7,683  $(539)
Weighted average common shares outstanding  11,862,163   12,112,372   12,158,440   11,963,276   12,011,180   12,037,855 
Weighted average earnings (loss) per common share $(0.02) $(0.12) $0.65  $0.08  $0.64  $(0.04)

 

Note 13. Dividend

 

On August 14, 2023, the Company declared a dividend of $0.71 per share payable on September 28, 2023, to common stockholders of record on September 14, 2023. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP.  

On May 22, 2023, the Company declared a dividend of $0.70 per share payable on June 29, 2023, to common stockholders of record on June 13, 2023. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP.  

 

The following table summarizes dividends declared for the threesix months ended MayAugust 31, 2023 (dollars in thousands except per share amounts):

 

  Amount Total 
Date Declared Record Date Payment Date Per Share  Amount*  Record Date Payment Date Amount
Per Share		 

Total

Amount*

 
August 14, 2023 September 14, 2023 September 28, 2023 $0.71 $9,287 
May 22, 2023 June 13, 2023 June 29, 2023 $0.70  $8,352(1) June 13, 2023 June 29, 2023  0.70 $8,352 
Total dividends declared $0.70  $

8,352

      $1.41 $17,639 

 

 

*Total amount is calculated based on the number of shares outstanding at the date of record.
(1)Based on shareholder elections, the dividend consisted of approximately $7.6 million in cash and 29,628 newly issued shares of common stock, or 0.2% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $25.29 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 15, 16, 20, 21, 22, 23, 26, 27, 28, and 29, 2023. 

 

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

 

Date Declared Record Date Payment Date Amount
Per Share		 Total Amount*  Record Date Payment Date Amount
Per Share		  Total
Amount*		 
August 29, 2022 September 14, 2022 September 29, 2022 $0.54  $6,433 
May 26, 2022 June 14, 2022 June 29, 2022 $0.53  $6,370  June 14, 2022 June 29, 2022  0.53   6,370 
Total dividends declared $0.53  $6,370      $1.07  $12,803 

 

 

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

 


 

 

Note 14. Financial Highlights 

 

The following is a schedule of financial highlights as of and for the threesix months ended MayAugust 31, 2023 and MayAugust 31, 2022:

 

Per share data May 31,
2023		  May 31,
2022		  August 31,
2023		  August 31,
2022		 
Net asset value at beginning of period $29.18  $29.33  $29.18  $29.33 
Net investment income(1)  1.35   0.66   2.49   1.30 
Net realized and unrealized gain and losses on investments(1)  (1.36)  (0.78)  (1.84)  (1.25)
Realized losses on extinguishment of debt  (0.01)  (0.10)
Net increase in net assets resulting from operations  (0.01)  (0.12)  0.64   (0.05)
Distributions declared from net investment income  (0.69)  (0.53)  (1.39)  (1.06)
Total distributions to stockholders  (0.69)  (0.53)  (1.39)  (1.06)
Issuance of common stock above net asset value (2)  -   -   -   - 
Repurchases of common stock(3)  0.04   0.04   0.05   0.10 
Dilution(4)  (0.04)  (0.02)  (0.04)  (0.05)
Net asset value at end of period $28.48  $28.69  $28.44  $28.27 
Net assets at end of period $337,450,848  $345,235,811  $362,078,755  $337,213,275 
Shares outstanding at end of period  11,847,742   12,031,998   12,729,781   11,927,238 
Per share market value at end of period $28.10  $26.57  $25.85  $24.28 
Total return based on market value(5)(6)  5.04%  (1.30)%  (0.69)%  (7.67)%
Total return based on net asset value(5)(7)  0.52%  (0.13)%  3.15%  0.69%
Ratio/Supplemental data:                
Ratio of net investment income to average net assets(8)  18.64%  7.42%  17.80%  8.61%
Expenses:                
Ratios of Operating Expenses and Income Taxes to average net assets*(9)  7.98%  6.49%
Ratios of operating expenses and income taxes to average net assets*(9)  7.76%  6.68%
Ratio of incentive management fees to average net assets(5)  0.03%  -0.54%  0.74%  -0.38%
Ratio of interest and debt financing expenses to average net assets(9)  13.59%  7.77%  13.75%  8.47%
Ratio of total expenses and income taxes to average net assets*(8)  21.60%  13.72%  22.25%  14.77%
Portfolio turnover rate(5)(10)  1.09%  1.18%  1.63%  11.83%
Asset coverage ratio per unit(11)  1,557   1,793   1,597   1,842 
Average market value per unit                
Revolving Credit Facility(12)  N/A   N/A   N/A   N/A 
SBA Debentures Payable(12)  N/A   N/A   N/A   N/A 
8.75% Notes Payable 2024(12)  N/A   N/A   N/A   N/A 
6.00% Notes Payable 2025(12)  N/A   N/A 
7.00% Notes Payable 2025(12)  N/A   N/A 
7.25% Notes Payable 2025(13)  N/A  $25.42   N/A   N/A 
7.75% Notes Payable 2025(12)  N/A   N/A   N/A   N/A 
4.375% Notes Payable 2026(12)  N/A   N/A   N/A   N/A 
4.35% Notes Payable 2027(12)  N/A   N/A   N/A   N/A 
6.00% Notes Payable 2027 $23.24  $24.70  $23.31  $24.53 
6.25% Notes Payable 2027(12)  N/A   N/A   N/A   N/A 
8.00% Notes Payable 2027 $24.86   N/A  $24.92   N/A 
8.125% Notes Payable 2027 $24.88   N/A  $24.93   N/A 
8.50% Notes Payable 2028 $24.91   N/A  $25.03   N/A 

 

 

**Certain prior period amounts have been reclassified to conform to current period presentation.
(1)(1)Per share amounts are calculated using the weighted average shares outstanding during the period.
(2)(2)The continuous issuance of common stock may cause an incremental increase in NAV per share due to the sale of shares at the then prevailing public offering price and the receipt of net proceeds per share by the Company in excess of NAV per share on each subscription closing date. The per share data was derived by computing (i) the sum of (A) the number of shares issued in connection with subscriptions and/or distribution reinvestment on each share transaction date multiplied by (B) the differences between the net proceeds per share and the NAV per share on each share transaction date, divided by (ii) the total shares outstanding during the period.
(3)(3)Represents the anti-dilutive impact on the NAV of the Company due to the repurchase of common shares. See Note 11, Stockholders’ Equity.

 


 

 

(4)(4)Represents the dilutive effect of issuing common stock below NAV per share during the period in connection with the satisfaction of the Company’s annual RIC distribution requirement and may include the impact of the different share amounts used for different items (weighted average basic common shares outstanding for the corresponding year and actual common shares outstanding at the end of the year) in the per common share data calculation and rounding impacts. See Note 13, Dividend.
(5)(5)Ratios are not annualized.
(6)(6)Total investment return is calculated assuming a purchase of common shares at the current market value on the first day and a sale at the current market value on the last day of the periods reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the DRIP. Total investment return does not reflect brokerage commissions.
(7)(7)Total investment return is calculated assuming a purchase of common shares at the current NAV on the first day and a sale at the current NAVnet asset value on the last day of the periods reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the DRIP. Total investment return does not reflect brokerage commissions.
(8)(8)Ratios are annualized. Incentive management fees included within the ratio are not annualized.
(9)(9)Ratios are annualized.
(10)(10)Portfolio turnover rate is calculated using the lesser of year-to-date sales or year-to-date purchases over the average of the invested assets at fair value.
(11)(11)Asset coverage ratio per unit is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage ratio per unit is expressed in terms of dollar amounts per $1,000 of indebtedness. Asset coverage ratio per unit does not include unfunded commitments. The inclusion of unfunded commitments in the calculation of the asset coverage ratio per unit would not cause us to be below the required amount of regulatory coverage.
(12)(12)The Revolving Credit Facility, SBA Debentures, 8.75% Notes Payable 2024, 7.00% Notes 6.00%Payable 2025, 7.75% Notes 7.75%Payable 2025, 4.375% Notes 4.375%Payable 2026, 4.35% Notes 4.35%Payable 2027 Notes and 6.25% Notes Payable 2027 Notes are not registered for public trading.
(13)(13)On July 14, 2022, the Company redeemed $43.1 million in aggregate principal amount of the $43.1 million in aggregate principal amount of issued and outstanding 7.25% 2025 Notes and are no longer listed on the NYSE.

 

Note 15. Subsequent Events

 

On July 6, 2023, we increased the maximum amount of shares of our common stock to be soldThe Company has evaluated subsequent events through the ATM Program to $300.0 million from $150.0 million. In connection with the upsizefiling of the ATM Program, we entered into amendment no. 2this Form 10-Q and determined that there have been no events that have occurred that would require adjustments to the equity distribution agreement (“Amendment No. 2”), dated July 10, 2023 (as amended from time to time, the “Equity Distribution Agreement”), with the Agents. Under the Equity Distribution Agreement, we may, but have no obligation to, issueCompany’s consolidated financial statements and sell up to $300.0 million in aggregate amount of our shares of common stockdisclosures in the ATM Program, from time to time throughconsolidated financial statements as of and for the Agents, or to them, as principal for their own account.

The Agents will receive a commission from us up to 1.5% of the gross sales price of any shares of our common stock sold through the Agents under the Equity Distribution Agreement.  The sales price per share of our common stock offered under the ATM Program, less the Agents’ commission, will not be less than the NAV per share of our common stock at the time of such sale. Saratoga Investment Advisors may, from time to time and in its sole discretion, contribute proceeds necessary to ensure that no sales are made at a price below the then-current NAV per share.quarter ended August 31, 2023.

 


 

 

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

 

The following discussion should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form 10-Q. In addition to historical information, the following discussion and other parts of this Quarterly Report contain forward-looking information that involves risks and uncertainties. Our actual results could differ materially from those anticipated by such forward-looking information due to the factors discussed under “Note about Forward-Looking Statements” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended February 28, 2023.

 

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

 

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

 

●our future operating results;

 

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

 

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

 

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

 

●the impact of increased competition;

 

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

 

●the unfavorable resolution of any future legal proceedings;

 

●our business prospects and the operational and financial performance of our portfolio companies, including their ability to achieve our respective objectives as a result of the current economic conditions caused by, among other things, the COVID-19 pandemic, elevated levels of inflation, and a rising interest rate environment, and the effects of the disruptions caused thereby on our ability to continue to effectively manage our business;

●


interest rate volatility, including the replacement of LIBOR with alternate reference rates and the rising interest rate environment, could adversely affect our results, particularly if we elect to use leverage as part of our investment strategy;

 

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

 

●our contractual arrangements and relationships with third parties;

 

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


  

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

 

 ●our expected financings and investments;


 

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

 

 ●the adequacy of our cash resources and working capital;

 

 ●the timing of cash flows, if any, from the operations of our portfolio companies;

 

 ●the impact of interest rate volatility, including the decommissioning of LIBOR, on our results, particularly because we use leverage as part of our investment strategy;
   
 ●the impact of supply chain constraints and labor difficulties on our portfolio companies and the global economy;
   
 ●the elevated level of inflation, and its impact on our portfolio companies and on the industries in which we invest;

 

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

 

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

 

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

 

 ●the ability of our Manager to attract and retain highly talented professionals; and
   
●the ability of our Manager to locate suitable investments for us and to monitor and effectively administer our investments.


 

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

 

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

 

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

 


OVERVIEW

 

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


Corporate History

 

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

 

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

  

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

 

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


 

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

 

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

 

On March 28, 2012, our wholly owned subsidiary, Saratoga Investment Corp. SBIC, LP (“SBIC LP”), received an SBIC license from the Small Business Administration (the “SBA”). On August 14, 2019, our wholly owned subsidiary, Saratoga Investment Corp. SBIC II LP (“SBIC II LP”), also received an SBIC license from the SBA. On September 29, 2022, the Company’sour wholly owned subsidiary, SBIC III LP (“SBIC III LP” and together with SBIC LP and SBIC II LP, the “SBIC Subsidiaries”), also received an SBIC license from the SBA.

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

On September 24, 2014, the Company announced the approval of an open market share repurchase plan that allowed it to originally repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published consolidated financial statements (the “Share Repurchase Plan”). Since September 24, 2014, the Share Repurchase Plan has been extended annually, and the Company has periodically increased the amount of shares of common stock that may be purchased under the Share Repurchase Plan.  Most recently, on January 9, 2023, our board of directors extended the Share Repurchase Plan for another year to January 15, 2024, increasing the number of shares that may be repurchased under the Share Repurchase Plan to 1.7 million shares of common stock. As of May 31, 2023, the Company purchased 1,035,203 shares of common stock, at the average price of $22.05 for approximately $22.8 million pursuant to the Share Repurchase Plan. During the three months ended May 31, 2023 the Company purchased 88,576 shares of common stock, at the average price of $24.36 for approximately $2.2 million pursuant to the Share Repurchase Plan.

On May 29, 2015, we entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which we may offer for sale, from time to time, up to $20.0 million in aggregate principal amount of the 2020 Notes through an At-the-Market (“ATM”) offering. Prior to the 2020 Notes being redeemed in full, the Company sold 539,725 units of the 7.50% 2020 Notes with a principal of $13.5 million at an average price of $25.31 for aggregate net proceeds of $13.4 million (net of transaction costs).

On December 21, 2016, we issued $74.5 million in aggregate principal amount of our 6.75% fixed-rate unsecured notes due 2023 (the “6.75% 2023 Notes”) for net proceeds of $71.7 million after deducting underwriting commissions of approximately $2.3 million and offering costs of approximately $0.5 million. The issuance included the exercise of substantially all of the underwriters’ option to purchase an additional $9.8 million aggregate principal amount of 6.75% 2023 Notes within 30 days. The 6.75% 2023 Notes were listed on the NYSE under the trading symbol “SAB” with a par value of $25.00 per note. On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.45 million, respectively, in aggregate principal amount of the 6.75% 2023 Notes and they are no longer listed on the NYSE.

 


 

 

On March 16, 2017, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc., through which we may offer for sale, from time to time, up to $30.0 million of our common stock through an ATM offering. Subsequent to this, we amended our equity distribution agreement to add BB&T Capital Markets and B. Riley FBR, Inc. as sales agents in our ATM offering. On July 11, 2019, the amount of the common stock to be offered through this offering was increased to $70.0 million, and on October 8, 2019, the amount of the common stock to be offered was increased to $130.0 million. As of February 28, 2021, we sold 3,922,018 shares for gross proceeds of $97.1 million at an average price of $24.77 for aggregate net proceeds of $95.9 million (net of transaction costs). This equity distribution agreement was terminated as of July 29, 2021 and, as of that date, we sold 3,922,018 shares for gross proceeds of $97.1 million at an average price of $24.77 for aggregate net proceeds of $95.9 million (net of transaction costs).

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

On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of our 6.25% fixed-rate notes due 2025 (the “6.25% 2025 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.3 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $5.0 million aggregate principal amount of 6.25% 2025 Notes within 30 days. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 6.25% 2025 Notes have been capitalized and were amortized over the term of the 6.25% 2025 Notes.

On December 14, 2018, the Company completed the third refinancing of the Saratoga CLO (the “2013-1 Reset CLO Notes”). This refinancing, among other things, extended the Saratoga CLO reinvestment period to January 2021, and extended its legal maturity to January 2030. A non-call period of January 2020 was also added. In addition to and as part of the refinancing, the Saratoga CLO has also been upsized from $300 million in assets to approximately $500 million. As part of this refinancing and upsizing, the Company invested an additional $13.8 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $2.5 million in aggregate principal amount of the Class F-R-2 Notes tranche and $7.5 million in aggregate principal amount of the Class G-R-2 Notes tranche at par. Concurrently, the existing $4.5 million of Class F notes and $20.0 million CLO 2013-1 Warehouse Loan were repaid. 

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

On June 24, 2020, the Company issued $37.5 million aggregate principal amount of our 7.25% fixed-rate notes due 2025 (the “7.25% 2025 Notes”) for net proceeds of $36.3 million after deducting underwriting commissions of approximately $1.2 million. Offering costs incurred were approximately $0.3 million. On July 6, 2020, the underwriters exercised their option in full to purchase an additional $5.625 million in aggregate principal amount of its 7.25% 2025 Notes. Net proceeds to the Company were $5.4 million after deducting underwriting commissions of approximately $0.2 million. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 7.25% 2025 Notes have been capitalized and were amortized over the term of the 7.25% 2025 Notes. On July 14, 2022, the 7.25% 2025 Notes were redeemed and are no longer listed on the NYSE.

On July 9, 2020, the Company issued $5.0 million aggregate principal amount of our 7.75% fixed-rate notes due in 2025 (the “7.75% 2025 Notes”) for net proceeds of $4.8 million after deducting underwriting commissions of approximately $0.2 million. Offering costs incurred were approximately $0.1 million. Interest on the 7.75% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.75% per year. The 7.75% 2025 Notes mature on July 9, 2025 and may be redeemed in whole or in part at any time or from time to time at our option, subject to a fee depending on the date of repayment. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 7.75% 2025 Notes have been capitalized and are being amortized over the term of the Notes. The 7.75% 2025 Notes are not listed and have a par value of $25.00 per note.

On December 29, 2020, the Company issued $5.0 million aggregate principal amount of our 6.25% fixed-rate Notes due in 2027 (the “6.25% 2027 Notes”).  Offering costs incurred were approximately $0.1 million.  Interest on the 6.25% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021. The 6.25% 2027 Notes mature on December 29, 2027 and may be redeemed in whole or in part at any time or from time to time at our option, on or after December 29, 2024. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.1 million related to the 6.25% 2027 Notes have been capitalized and are being amortized over the term of the Notes. The 6.25% 2027 Notes are not listed and have a par value of $25.00 per note.


On January 28, 2021, the Company issued $10.0 million aggregate principal amount of our 6.25% fixed rate Notes due in 2027 (the “Second 6.25% 2027 Notes”) for net proceeds of $9.7 million after deducting underwriting commissions of approximately $0.3 million. Offering costs incurred were approximately $0.1 million. Interest on the Second 6.25% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021. The Second 6.25% 2027 Notes mature on January 28, 2027 and commencing January 28, 2023, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.4 million related to the Second 6.25% 2027 Notes have been capitalized and are being amortized over the term of the Notes. The Second 6.25% 2027 Notes are not listed and have a par value of $25.00 per note.

On February 26, 2021, the Companywe completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033.2033, and added a non-call period ending February 2022. A non-call period ending February 2022 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also beenwas upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Companywe invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million CLO 2013-1 Warehouse 2 Loan were repaid. The CompanyWe also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. At August 31, 2021, the outstanding receivable of $2.6 million was repaid.

 

On March 10, 2021, the Company issued $50.0 million aggregate principal amount of our 4.375% fixed-rate Notes due in 2026 (the “4.375% 2026 Notes”) for net proceeds of $49.0 million after deducting underwriting commissions of approximately $1.0 million. Offering costs incurred were approximately $0.3 million. Interest on the 4.375% 2026 Notes is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.375% per year, beginning August 28, 2021. The 4.375% 2026 Notes mature on February 28, 2026 and may be redeemed in whole or in part at any time on or after November 28, 2025 at par plus a “make-whole” premium, and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.3 million related to the 4.375% 2026 NotesWe have been capitalized and are being amortized over the term of the Notes.

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

On July 30, 2021, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc. and Compass Point Research and Trading, LLC (the “Agents”), through which we may offer for sale, from time to time, up to $150.0 million of our common stock through the Agents, or to them, as principal for their account (the “ATM Program”). As of May 31, 2023, the Company sold 4,840,361 shares for gross proceeds of $124.0 million at an average price of $25.61 for aggregate net proceeds of $122.4 million (net of transaction costs). During the three months ended May 31, 2023, there were no shares sold pursuant to the equity distribution agreement with the Agents.


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

The Company has formed a wholly owned special purpose entity, Saratoga Investment Funding II LLC, a Delaware limited liability company (“SIF II”), for the purpose of entering into a $50.0 million senior secured revolving credit facility with Encina Lender Finance, LLC (the “Lender”), supported by loans held by SIF II and pledged to the Lender under the credit facility (the “Encina Credit Facility)Facility”). The Encina Credit Facility closed on October 4, 2021. During the first two years following the closing date, SIF II may request an increase in the commitment amount under the Encina Credit Facility to up to $75.0 million. The terms of the Encina Credit Facility required a minimum drawn amount of $12.5 million at all times during the first six months following the closing date, which increased to the greater of $25.0 million or 50% of the commitment amount in effect at any time thereafter. The term of the Encina Credit Facility is three years. Advances under the Encina Credit Facility bear interest at a floating rate per annum equal to LIBOR plus 4.0%, with LIBOR having a floor of 0.75%, with customary provisions related to the selection by the Lenderour and the CompanyLender’s selection of a replacement benchmark rate. Concurrently with the closing of the Encina Credit Facility, all remaining amounts outstanding on the Company’sour existing revolving credit facility with Madison Capital Funding, LLC were repaid and the facility was terminated. On January 27, 2023, among other things, the borrowings available under the Encina Credit Facility was increased from up to $50.0 million to up to $65.0 million, the underlying benchmark rate used to compute interest changed from LIBOR to Term SOFR for one-month tenor plus a 0.10% credit spread adjustment;adjustment, the applicable effective margin rate on borrowings increased from 4.00% to 4.25% and the maturity date was extended from October 4, 2024 to January 27, 2026.

 

On October 26, 2021, the Company andwe entered into a limited liability company agreement with TJHA JV I LLC (“TJHA”) entered into a Limited Liability Company Agreement to co-manage Saratoga Senior Loan Fund I JV LLC (“SLF JV”). SLF JV is invested in Saratoga Investment Corp Senior Loan Fund 2021-1 Ltd (“SLF 2021”), which is a wholly owned subsidiary of SLF JV. SLF 2021 was formed for the purpose of making investments in a diversified portfolio of broadly syndicated first lien and second lien term loans or bonds in the primary and secondary markets.

 

On September 30, 2022, SLF 2021 was renamed to Saratoga Investment Corp Senior Loan Fund 2022-1, Ltd. (“SLF 2022”).

 

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

 

The CompanyWe and TJHA have committed to provide up to a combined $50.0 million of financing to SLF JV through cash contributions, with the Company providingwhere we provide $43.75 million and TJHA providingproves $6.25 million, resulting in an 87.5% and 12.5% ownership between the two parties. The financing is issued in the form of an unsecured note and equity. The unsecured note will pay a fixed rate of 10.0% per annum and is due and payable in full on June 15, 2023. As of MayAugust 31, 2023 the Companyour and TJHA’s investment in SLF JV consisted of an unsecured note of $17.6 million and $2.5 million, respectively; and membership interest of $17.6 million and $2.5 million, respectively.

For the three months ended May 31, 2023 and May 31, 2022, the Company earned $0.5 million and $0.3 million, respectively, of interest income related to SLF JV, which is included in interest income.

 

SLF JV’s initial investment in SLF 2022 was in the form of an unsecured loan. The unsecured note paid a fixed rate of 10.00% per annum and is due and payable in full on October 20, 2033. The unsecured loan was repaid in full on October 28, 2022, as part of the CLO closing.

 

The Company has


We have determined that SLF JV is an investment company under (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services—Investment Companies; however, in accordance with such guidance the Companywe will generally not consolidate itsour investment in a company other than a wholly owned investment company subsidiary. SLF JV is not a wholly owned investment company subsidiary as the Companywe and TJHA each have an equal 50% voting interest in SLF JV and thus neither party has a controlling financial interest. Furthermore, ASC Topic810,Topic 810, Consolidation, concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company doeswe do not consolidate SLF JV.


On January 19, 2022, the Company issued $75.0 million aggregate principal amount of our 4.35% fixed-rate Notes due in 2027 (the “4.35% 2027 Notes”) for net proceeds of $73.0 million, based on the public offering price of 99.317% of the aggregate principal amount of the 4.35% 2027 Notes, after deducting the underwriting commissions of approximately $1.5 million. Offering costs incurred were approximately $0.3 million.  Interest on the 4.35% 2027 Notes is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.35% per year, beginning August 28, 2022. The 4.35% 2027 Notes mature on February 28, 2027 and may be redeemed in whole or in part at the Company’s option at any time prior to November 28, 2026, at par plus a “make-whole” premium, and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.8 million related to the 4.35% 2027 Notes have been capitalized and are being amortized over the term of the Notes.

On April 27, 2022, the Company issued $87.5 million aggregate principal amount of our 6.00% fixed-rate notes due 2027 (the “6.00% 2027 Notes”) for net proceeds of $84.8 million after deducting underwriting commissions of approximately $2.7 million. Offering costs incurred were approximately $0.1 million. On May 10, 2022, the underwriters partially exercised their option to purchase an additional $10.0 million in aggregate principal amount of the 6.00% 2027 Notes. Net proceeds to the Company were $9.7 million after deducting underwriting commissions of approximately $0.3 million. Interest on the 6.00% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.00% per year. The 6.00% 2027 Notes mature on April 30, 2027 and commencing April 27, 2024, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $3.5 million related to the 6.00% 2027 Notes have been capitalized and are being amortized over the term of the 6.00% 2027 Notes. The 6.00% 2027 Notes are listed on the NYSE under the trading symbol “SAT” with a par value of $25.00 per note.

On August 15, 2022, the Company issued an additional $8.0 million in aggregate principal amount of the 6.00% 2027 Notes (the “Additional 6.00% 2027 Notes”) for net proceeds of $7.8 million, based on the public offering price of 97.80% of the aggregate principal amount of the 6.00% 2027 Notes. The Additional 6.00% 2027 Notes are treated as a single series with the existing 6.00% 2027 Notes under the indenture and had the same terms as the existing 6.00% 2027 Notes. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Additional offering costs incurred were approximately $0.2 million. Additional financing costs of $0.2 million related to the 6.00% 2027 Notes have been capitalized and are being amortized over the term of the 6.00% 2027 Notes.

On September 8, 2022, the Company issued $12.0 million in aggregate principal amount of our 7.00% fixed-rate notes due 2025 (the “7.00% 2025 Notes”) for net proceeds of $11.6 million after deducting customary fees and offering expenses of approximately $0.4 million. Interest on the 7.00% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.00% per year. The 7.00% 2025 Notes mature on September 8, 2025 and commencing September 8, 2024, may be redeemed in whole or in part at any time or from time to time at our option. We expect to use the net proceeds from this offering to make investments in middle-market companies (including investments made through our SBIC subsidiaries) in accordance with our investment objective and strategies and for general corporate purposes. Financing costs of $0.05 million related to the 7.00% 2025 Notes have been capitalized and are being amortized over the term of the 7.00% 2025 Notes.

On September 29, 2022, the Company’s wholly owned subsidiary, SBIC III LP, also received an SBIC license from the SBA. SBIC III LP’s SBIC license provides up to $175.0 million in additional long-term capital in the form of SBA debentures.    

On October 27, 2022, the Company issued $40.0 million in aggregate principal amount of our 8.00% fixed-rate notes due 2027 (the “8.00% 2027 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.2 million. On November 10, 2022, the underwriters partially exercised their option to purchase an additional $6.0 million in aggregate principal amount of the 8.00% 2027 Notes. Net proceeds to the Company were $5.8 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 8.00% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.00% per year, beginning February 28, 2023. The 8.00% 2027 Notes mature on October 31, 2027 and commencing October 27, 2024, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.7 million related to the 8.00% 2027 Notes have been capitalized and are being amortized over the term of the 8.00% 2027 Notes. The 8.00% 2027 Notes are listed on the NYSE under the trading symbol “SAJ” with a par value of $25.00 per note.

 

On October 28, 2022, SLF 2022 issued $402.1 million of debt through the JV CLO trust. The 2022 JV CLO Notes were issued pursuant to the JV Indenture, with the Trustee. As part of the transaction, the Companywe purchased 87.50% of the Class E Notes from SLF 2022 with a par value of $12.25 million. As of MayAugust 31, 2023 and February 28, 2023, the fair value of these Class E Notes were $11.4 million and $11.4 million, respectively.

  


On December 13, 2022, the Company issued $52.5 million in aggregate principal amount of our 8.125% fixed-rate notes due 2027 (the “8.125% 2027 Notes”) for net proceeds of $50.8 million after deducting underwriting commissions of approximately $1.6 million. Offering costs incurred were approximately $0.1 million. On December 21, 2022, the underwriters partially exercised their option to purchase an additional $7.9 million in aggregate principal amount of the 8.125% 2027 Notes. Net proceeds to the Company were $7.6 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 8.125% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.125% per year, beginning February 28, 2023. The 8.125% 2027 Notes mature on December 31, 2027 and commencing December 13, 2024, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from this offering were used to make investments in middle-market companies (including investments made through our SBIC Subsidiaries) in accordance with our investment objective and strategies and for general corporate purposes. Financing costs of $2.0 million related to the 8.125% 2027 Notes have been capitalized and are being amortized over the term of the 8.125% 2027 Notes. The 8.125% 2027 Notes are listed on the NYSE under the trading symbol “SAY” with a par value of $25.00 per share.

On March 31, 2023, the Company issued $10.0 million in aggregate principal amount of our 8.75% fixed-rate notes due 2024 (the “8.75% 2024 Notes”) for net proceeds of $9.7 million after deducting underwriting discounts of approximately $0.4 million. On May 1, 2023, the Company issued an additional $10.0 million in aggregate principal amount of the 8.75% 2024 Notes for net proceeds of $9.7 million after deducting underwriting discounts of approximately $0.4 million. Offering costs incurred were approximately $0.03 million. Interest on the 8.75% 2024 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.75% per year, beginning May 31, 2023.  The 8.75% 2024 Notes mature on March 31, 2024. Net proceeds from this offering were used to make investments in middle-market companies (including investments made through our SBIC Subsidiaries) in accordance with our investment objective and strategies and general corporate purposes. Financing costs of $0.7 million related to the 8.75% 2024 Notes have been capitalized and are being amortized over the term of the 8.75% 2024 Notes.

On April 14, 2023, the Company issued $50.0 million in aggregate principal amount of our 8.50% fixed-rate notes due 2028 (the “8.50% 2028 Notes”) for net proceeds of $48.4 million after deducting underwriting commissions of approximately $1.6 million. Offering costs incurred were approximately $0.03 million. On April 26, 2023, the underwriters fully exercised their option to purchase an additional $7.5 million in aggregate principal amount of the 8.50% 2028 Notes. Net proceeds to the Company were $7.3 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 8.50% 2028 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.50% per year, beginning May 31, 2023.  The 8.50% 2028 Notes mature on April 15, 2028, and commencing April 14, 2025, may be redeemed in whole or in part at any time or from time to time at our option. Net proceeds from this offering were used to repay a portion of the outstanding indebtedness under the Encina Credit Facility, make investments in middle-market companies (including investments made through our SBIC Subsidiaries) in accordance with our investment objective and strategies and for general corporate purposes. Financing costs of $2.0 million related to the 8.50% 2028 Notes have been capitalized and are being amortized over the term of the 8.50% 2028 Notes. The 8.50% 2028 Notes are listed on the NYSE under the trading symbol “SAZ” with a par value of $25.00 per share.

Critical Accounting Policies and Use of Estimates

 

Basis of Presentation

 

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

 


Investment Valuation

 

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

 

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


 

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

 

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

 

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

 

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

 

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

 

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


  

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

 

In December 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted new Rule 2a-5 under the 1940 Act (“Rule 2a-5”) that established a regulatory framework for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 permits boards, subject to board oversight and certain other conditions, to designate the investment adviser to perform fair value determinations. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must determine the fair value of a security. The SEC also adopted new Rule 31a-4 under the 1940 Act (“Rule 31a-4”), that provides the recordkeeping requirements associated with fair value determinations. Finally, the SEC rescinded previously issued guidance on related issues, including the role of the board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, and had a compliance date of September 8, 2022. While our board of directors has not elected to designate Saratoga Investment Advisors as the valuation designee, the Company haswe have adopted certain revisions to its valuation policies and procedures in order comply with the applicable requirements of Rule 2a-5 and Rule 31a-4.

 

Revenue Recognition

 

Income Recognition

 

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


 

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

 

Payment-in-Kind Interest

 

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


  

Revenues

 

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

 

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

 

On December 14, 2018, we completed a third refinancing and upsize of the Saratoga CLO. The third Saratoga CLO refinancing, among other things, extended its reinvestment period to January 2021, and extended its legal maturity date to January 2030. A2030, and added a non-call period of January 2020 was also added.2020. Following this refinancing, the Saratoga CLO portfolio increased from approximately $300.0 million in aggregate principal amount to approximately $500.0 million of predominantly senior secured first lien term loans. In addition to refinancing its liabilities, we invested an additional $13.8 million in all of the newly issued subordinated notes of the Saratoga CLO and also purchased $2.5 million in aggregate principal amount of the Class F-R-2 and $7.5 million aggregate principal amount of the Class G-R-2 notes tranches at par, with a coupon of 3M USD LIBOR plus 8.75% and 3M USD LIBOR plus 10.00%, respectively. As part of this refinancing, we also redeemed our existing $4.5 million aggregate amount of the Class F notes tranche at par and the $20.0 million CLO 2013-1 Warehouse Loan was repaid.

  

On February 11, 2020, we entered into an unsecured loan agreement (“CLO 2013-1 Warehouse 2 Loan”) with Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd (“CLO 2013-1 Warehouse 2”), a wholly owned subsidiary of Saratoga CLO. During the fourth quarter ended February 28, 2021, the CLO 2013-1 Warehouse 2 Ltd. was repaid in full.

 


On February 26, 2021, the Companywe completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. A2033, and added a non-call period endedof February 2022 was also added.2022. In addition, and as part of the refinancing, the Saratoga CLO has also beenwas upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Companywe invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million of the CLO 2013-1 Warehouse 2 Loan were repaid. The CompanyWe also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. At August 31, 2021, the outstanding receivable of $2.6 million was repaid in full.

 

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

 

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


  

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

 

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

 

Expenses

 

Our primary operating expenses include the payment of investment advisory and management fees, professional fees, directors and officers insurance, fees paid to directors who are not “interested persons” (as defined in Section 2(a)(19) of the 1940 Act) of the Company (“independent directors”) and administrator expenses, including our allocable portion of our administrator’s overhead. Our investment advisory and management fees compensate our Manager for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all other costs and expenses of our operations and transactions, including those relating to:

 

 ●organization;

 

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

  

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

 

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

 

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

 

 ●offerings of our common stock and other securities;

 


 ●investment advisory and management fees;

 

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

 

 ●transfer agent and custodial fees;

 

 ●federal and state registration fees;

 

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

 

 ●U.S. federal, state and local taxes;

 

 ●independent directors’ fees and expenses;

 


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

 

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

 

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

 

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

 

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

 

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

 

The incentive fee had two parts:

 

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

 

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


 

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


 

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

 

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

 

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

 

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

 

Capital Gains Incentive Fee

 

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

 

Recent Accounting Pronouncements

 

In June 2022, the FASB issued ASU No. 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820),” which clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security’s unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security’s fair value. In addition, ASU No. 2022-03 prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. ASU No. 2022-03’s amendments are effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company isWe are currently evaluating the impact of the adoption of ASU No. 2022-03 on itsour consolidated financial statements.

 

In March 2020, the FASB issued “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”) to provide optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 established Topic 848 to provide relief during the temporary transition period and includes a sunset provision based on expectations of when the London Interbank Offered Rate (“LIBOR”) would cease being published. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which deferred the sunset day of this guidance to December 31, 2024. With the adoption of ASU 2022-06, there was no significant impact to the Company’sour financial position.

 


 

  

Portfolio and Investment Activity

 

Investment Portfolio Overview

 

 May 31, 
2023		 February 28,
2023		  August 31,
2023		 February 28,
2023		 
 ($ in millions)  ($ in millions) 
Number of investments(1)  137   115  137 115 
Number of portfolio companies(2)  56   49  55 49 
Average investment per portfolio company(2) $18.8  $19.0  $19.3 $19.0 
Average investment size(1) $7.8  $8.3  $7.9 $8.3 
Weighted average maturity(3)   3.2 yrs     2.9 yrs  2.7 yrs 2.9 yrs 
Number of industries (5)  42   40  43 40 
Non-performing or delinquent investments (fair value) $9.8  $9.8  $17.7 $9.8 
Fixed rate debt (% of interest earning portfolio)(3) $8.5(0.9)% $8.2(1.0)% $5.6(0.6)% $8.2(1.0)%
Fixed rate debt (weighted average current coupon)(3)  12.3%  12.2% 15.0% 12.2%
Floating rate debt (% of interest earning portfolio)(3) $936.3(99.1)% $817.1(99.0)% $948.1(99.4)% $817.1(99.0)%
Floating rate debt (weighted average current spread over LIBOR)(3)(4)  7.3%  7.0% 7.4% 7.0%

 

 

(1)(1)Excludes our investment in the subordinated notes of Saratoga CLO.
(2)(2)Excludes our investment in the subordinated notes of Saratoga CLO and Class F-2-R-3 Notes tranche, as well as the unsecured notes and equity interests in the SLF JV and the Class E Note tranche of the SLF 20222022.
(3)(3)Excludes our investment in the subordinated notes of Saratoga CLO and equity interests, as well as the unsecured notes and equity interests in SLF JV and the Class E Note tranche of the SLF 2022.
(4)(4)Calculation uses either 1-month or 3-month LIBOR, depending on the contractual terms, and after factoring in any existing LIBOR floors.
(5)Our investment in the subordinated notes of Saratoga CLO and Class F-R-3 Note tranche, as well as the unsecured notes and equity interests in the SLF JV and the Class E Note tranche of the SLF 2022 are included in Structured Finance Securities industry.

 

During the three months ended MayAugust 31, 2023, we invested $139.8$27.4 million in new and existing portfolio companies and had $11.1$6.0 million in aggregate amount of exits and repayments resulting in net investments of $128.8$21.4 million for the period. During the three months ended MayAugust 31, 2022, we invested $97.2$140.5 million in new and existing portfolio companies and had $10.1$75.1 million in aggregate amount of exits and repayments resulting in net repayments of $87.1$65.5 million for the period.

 

Portfolio CompositionDuring the six months ended August 31, 2023, we invested $167.3 million in new and existing portfolio companies and had $17.1 million in aggregate amount of exits and repayments resulting in net investments of $150.2 million for the period. During the six months ended August 31, 2022, we invested $237.7 million in new and existing portfolio companies and had $85.1 million in aggregate amount of exits and repayments resulting in net repayments of $152.6 million for the period.

 

Portfolio Composition

Our portfolio composition at MayAugust 31, 2023: and February 28, 2023: at fair value was as follows:

 

 May 31, 2023 February 28, 2023  August 31, 2023  February 28, 2023 
  Percentage of Total  Portfolio    Weighted Average Current Yield Percentage of Total  Portfolio Weighted Average Current Yield  Percentage of Total Portfolio Weighted Average Current Yield Percentage of Total Portfolio Weighted Average Current Yield 
First lien term loans 84.7% 12.9% 82.1% 12.3%  84.6%  12.8%  82.1%  12.3%
Second lien term loans  1.4   5.4   1.5   5.3   1.4   5.6   1.5   5.3 
Unsecured term loans  1.9   9.8   2.1   9.8   1.6   10.0   2.1   9.8 
Structured finance securities  3.1   9.3   4.3   7.4   3.2   8.9   4.3   7.4 
Equity interests  8.9   -   10.0   -   9.2   -   10.0   - 
Total  100.0%  11.4%  100.0%  10.7%  100.0%  11.3%  100.0%  10.7%

 


 

 

At MayAugust 31, 2023, our investment in the subordinated notes of Saratoga CLO, a collateralized loan obligation fund, had a fair value of $13.7$15.2 million and constituted 1.3%1.4% of our portfolio. This investment constitutes a first loss position in a portfolio that, as of MayAugust 31, 2023 and February 28, 2023, was composed of $652.8$651.6 million and $658.0 million, respectively, in aggregate principal amount of primarily senior secured first lien term loans. In addition, as of MayAugust 31, 2023, we also own $9.4 million in aggregate principal of the F-2-R-3 Notes in the Saratoga CLO, which only rank senior to the subordinated notes.

 

This investment is subject to unique risks. (See Part 1. Item 1A. Risk Factors—“Our investment in Saratoga CLO constitutes a leveraged investment in a portfolio of predominantly senior secured first lien term loans and is subject to additional risks and volatility” in our Annual Report on Form 10-K for the fiscal year ended February 28, 2023).

 

We do not consolidate the Saratoga CLO portfolio in our consolidated financial statements. Accordingly, the metrics below do not include the underlying Saratoga CLO portfolio investments. However, at MayAugust 31, 2023, $586.0$589.5 million or 99.2%98.6% of the Saratoga CLO portfolio investments in terms of market value had a CMR (as defined below) color rating of green or yellow and onefour Saratoga CLO portfolio investments was in default with a fair value of $0.3$1.1 million. At February 28, 2023, $585.2$544.4 million or 96.6%89.8% of the Saratoga CLO portfolio investments in terms of market value had a CMR color rating of green or yellow and two Saratoga CLO portfolio investments were in default with a fair value of $2.8 million. For more information relating to the Saratoga CLO, see the audited financial statements for Saratoga in our Annual Report on Form 10-K for the fiscal year ended February 28, 2023.

 

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

 

Portfolio CMR distribution

The CMR distribution for our investments at MayAugust 31, 2023 and February 28, 2023 was as follows:

 

Saratoga Investment Corp.

 

 May 31, 2023  February 28, 2023  August 31, 2023  February 28, 2023 
Color Score Investments at Fair Value  Percentage of Total Portfolio  Investments at Fair Value  Percentage of Total Portfolio  Investments
at
Fair Value		  Percentage
of Total
Portfolio		  Investments
at
Fair Value		  Percentage
of Total
Portfolio		 
 ($ in thousands)  ($ in thousands) 
Green $929,109   85.7% $808,791   83.2% $953,597   86.8% $808,791   83.2%
Yellow  33,246   3.1   34,172   3.5   9,754   0.9   34,172   3.5 
Red  -   0.0   -   0.0   7,940   0.7   -   0.0 
N/A(1)  121,743   11.2   129,627   13.3   127,654   11.6   129,627   13.3 
Total $1,084,098   100.0% $972,590   100.0% $1,098,945   100.0% $972,590   100.0%

 

 

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

 

The CMR distribution of Saratoga CLO investments at MayAugust 31, 2023 and February 28, 2023 was as follows:

 

Saratoga CLO

 

 May 31, 2023  February 28, 2023  August 31, 2023  February 28, 2023 
Color Score Investments
at Fair
Value		  Percentage of
Total
Portfolio		  Investments
at Fair
Value		  Percentage of
Total
Portfolio		  Investments
at
Fair Value		  Percentage
of Total
Portfolio		  Investments
at
Fair Value		  Percentage
of Total
Portfolio		 
 ($ in thousands)  ($ in thousands) 
Green $532,507   90.1% $544,424   89.9% $553,763   91.8% $544,424   89.9%
Yellow  53,513   9.1   40,812   6.7   44,468   7.4   40,812   6.7 
Red  4,837   0.8   20,718   3.4   4,373   0.7   20,718   3.4 
N/A(1)  -   0.0   -   0.0   513   0.1   -   0.0 
Total $590,857   100.0% $605,954   100.0% $603,117   100.0% $605,954   100.0%

 

 

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

 


 

 

Portfolio composition by industry grouping at fair value

 

The following table shows our portfolio composition by industry grouping at fair value at MayAugust 31, 2023 and February 28, 2023:

 

Saratoga Investment Corp.

 

 May 31, 2023 February 28, 2023  August 31, 2023  February 28, 2023 
 Investments
At
Fair Value		 Percentage
of Total
Portfolio		 Investments
At
Fair Value		 Percentage
of Total
Portfolio		  Investments
At
Fair Value		  Percentage
of Total
Portfolio		  Investments
At
Fair Value		  Percentage
of Total
Portfolio		 
 ($ in thousands)  ($ in thousands) 
Healthcare Software $119,103   11.0% $119,124   12.2% $120,109   10.8% $119,124   12.2%
IT Services  83,994   7.8   87,167   9.0   84,256   7.7   87,167   9.0 
HVAC Services and Sales  68,384   6.3   54,450   5.6   68,772   6.3   54,450   5.6 
Consumer Services  63,458   5.9   63,642   6.6   63,878   5.8   63,642   6.6 
Real Estate Services  53,093   4.9   53,406   5.5   53,261   4.8   53,406   5.5 
Education Software  46,177   4.3   44,955   4.6   45,603   4.1   44,955   4.6 
Education Services  38,175   3.5   34,489   3.5 
Hospitality/Hotel  38,139   3.5   37,972   3.9   38,134   3.5   37,972   3.9 
Education Services  37,213   3.4   34,489   3.5 
Structured Finance Securities(1)  33,906   3.1   41,363   4.4   35,609   3.2   41,363   4.4 
Healthcare Services  31,760   2.9   26,286   2.7   35,497   3.2   26,286   2.7 
Health/Fitness Franchisor  31,700   2.9   -   -   31,700   2.9   -   - 
Mental Healthcare Services  29,125   2.7   16,922   1.7 
Dental Practice Management  28,882   2.6   12,151   1.2 
Investment Fund  27,392   2.5   30,726   3.2 
Talent Acquisition Software  27,005   2.5   25,999   2.7   27,083   2.5   25,999   2.7 
Sports Management  26,800   2.5   26,711   2.7   26,835   2.4   26,711   2.7 
Financial Services  26,262   2.4   26,218   2.7   26,143   2.4   26,218   2.7 
Investment Fund  25,367   2.3   30,726   3.2 
Direct Selling Software  25,236   2.3   25,771   2.7   25,179   2.3   25,771   2.7 
Architecture & Engineering Software  24,998   2.3   -   - 
Mentoring Software  22,716   2.1   21,359   2.2 
Restaurant  24,963   2.3   24,826   2.6   22,086   2.0   24,826   2.6 
Architecture & Engineering Software  

24,255

   2.2   -   - 
Specialty Food Retailer  23,417   2.2   24,411   2.5 
Mental Healthcare Services  23,405   2.2   16,922   1.7 
Mentoring Software  23,033   2.1   21,359   2.2 
Dental Practice Management  22,807   2.1   12,151   1.2 
Legal Software  20,700   1.9   20,699   2.1   20,711   1.9   20,699   2.1 
Corporate Education Software  19,268   1.8   19,063   2.0   19,255   1.8   19,063   2.0 
Marketing Orchestration Software  18,715   1.7   18,715   1.9   18,589   1.7   18,715   1.9 
Association Management Software  18,185   1.7   -   -   18,185   1.7   -   - 
Insurance Software  17,006   1.6   16,761   1.7   17,202   1.6   16,761   1.7 
Non-profit Services  14,109   1.3   13,095   1.3   14,285   1.3   13,095   1.3 
Employee Collaboration Software  13,021   1.2   13,052   1.3   13,454   1.2   13,052   1.3 
Lead Management Software  12,120   1.1   12,090   1.2   12,120   1.1   12,090   1.2 
Alternative Investment Management Software  10,695   1.0   10,459   1.1 
Research Software  10,683   1.0   10,677   1.1   10,546   1.0   10,677   1.1 
Alternative Investment Management Software  10,590   1.0   10,459   1.1 
Financial Services Software  9,991   0.9   9,096   0.9 
Field Service Management  9,901   0.9   9,958   1.0   9,919   0.9   9,958   1.0 
Fire Inspection Business Software  9,900   0.9   -   0.0 
Roofing Contractor Software  9,900   0.9   -   -   9,875   0.9   -   - 
Industrial Products  9,325   0.9   9,608   1.0   8,568   0.8   9,608   1.0 
Financial Services Software  9,121   0.8   9,096   0.9 
Specialty Food Retailer  7,940   0.7   24,411   2.5 
Office Supplies  6,595   0.6   6,373   0.7   6,867   0.6   6,373   0.7 
Cyber Security  2,466   0.2   2,509   0.3   2,513   0.2   2,509   0.3 
Staffing Services  2,123   0.2   2,079   0.2   2,111   0.2   2,079   0.2 
Veterinary Services  495   0.1   -   -   495   0.0   -   - 
Facilities Maintenance  298   0.0   408   0.0   291   0.0   408   0.0 
Healthcare Supply  -   0.0   -   -   -   0.0   -   - 
Total  

1,084,098

   100.0% $972,590   100.0% $1,098,945   100.0% $972,590   100.0%

 

 

(1)As of MayAugust 31, 2023 and February 28, 2023, the foregoing comprised of our investment in the subordinated notes and F-2-R-3 Notes of Saratoga CLO, as well as the unsecured notes and equity interests in the SLF JV and E-Notes of SLF 2022.

 


 

 

The following table shows Saratoga CLO’s portfolio composition by industry grouping at fair value at MayAugust 31, 2023 and February 28, 2023:

 

Saratoga CLO

 May 31, 2023  February 28, 2023  August 31, 2023  February 28, 2023 
 Investments
at Fair
Value		  Percentage of
Total
Portfolio		  Investments
at Fair
Value		  Percentage of
Total
Portfolio		  Investments
at
Fair Value		  Percentage
of Total
Portfolio		  Investments
at
Fair Value		  Percentage
of Total
Portfolio		 
 ($ in thousands)  ($ in thousands) 
Banking, Finance, Insurance & Real Estate $111,362   18.8% $114,570   18.9% $111,407   18.3% $114,570   18.9%
Services: Business  68,281   11.5   65,947   10.9   69,114   11.5   65,947   10.9 
High Tech Industries  52,401   8.9   52,636   8.7   53,992   9.0   52,636   8.7 
Healthcare & Pharmaceuticals  36,095   6.1   38,952   6.4   38,876   6.4   38,952   6.4 
Services: Consumer  32,718   5.5   34,544   5.7   32,957   5.5   34,544   5.7 
Consumer goods: Durable  22,841   3.9   24,887   4.1   21,561   3.6   24,887   4.1 
Retail  23,934   4.0   24,049   4.0   26,449   4.4   24,049   4.0 
Chemicals, Plastics, & Rubber  25,612   4.3   23,857   3.9   29,307   4.9   23,857   3.9 
Telecommunications  22,558   3.8   22,514   3.7   21,871   3.6   22,514   3.7 
Automotive  20,145   3.4   20,410   3.4   20,089   3.3   20,410   3.4 
Media: Advertising, Printing & Publishing  20,290   3.4   20,309   3.4   20,866   3.5   20,309   3.4 
Containers, Packaging & Glass  18,541   3.1   18,239   3.0   18,194   3.0   18,239   3.0 
Beverage, Food & Tobacco  14,018   2.4   14,501   2.4   14,314   2.4   14,501   2.4 
Hotel, Gaming & Leisure  15,415   2.6   14,315   2.4   15,652   2.6   14,315   2.4 
Construction & Building  13,870   2.3   13,875   2.3   14,950   2.5   13,875   2.3 
Consumer goods: Non-durable  13,035   2.2   13,734   2.3   10,802   1.8   13,734   2.3 
Aerospace & Defense  12,411   2.1   13,688   2.3   12,921   2.1   13,688   2.3 
Media: Broadcasting & Subscription  10,417   1.8   11,143   1.8   10,636   1.8   11,143   1.8 
Media: Diversified & Production  9,312   1.6   9,279   1.5   9,253   1.5   9,279   1.5 
Capital Equipment  5,667   1.0   8,450   1.4   5,674   0.9   8,450   1.4 
Transportation: Cargo  8,724   1.5   8,236   1.4   8,986   1.5   8,236   1.4 
Wholesale  8,084   1.4   8,011   1.3   7,592   1.3   8,011   1.3 
Utilities: Oil & Gas  7,167   1.2   7,246   1.2   7,253   1.2   7,246   1.2 
Transportation: Consumer  3,390   0.6   6,844   1.1   3,440   0.6   6,844   1.1 
Metals & Mining  3,733   0.6   3,239   0.5   3,816   0.6   3,239   0.5 
Forest Products & Paper  3,100   0.5   3,190   0.5   3,094   0.5   3,190   0.5 
Energy: Oil & Gas  1,691   0.3   2,676   0.4   2,657   0.4   2,676   0.4 
Utilities: Electric  2,333   0.4   2,353   0.4   2,346   0.4   2,353   0.4 
Environmental Industries  2,215   0.4   2,155   0.4   2,280   0.4   2,155   0.4 
Energy: Electricity  2,018   0.3   2,105   0.3   2,768   0.5   2,105   0.3 
Total $591,378  $100% $605,954  $100% $603,117   100.0% $605,954   100.0%

 

Portfolio composition by geographic location at fair value

 

The following table shows our portfolio composition by geographic location at fair value at MayAugust 31, 2023 and February 28, 2023. The geographic composition is determined by the location of the corporate headquarters of the portfolio company.

 

 May 31, 2023 February 28, 2023  August 31, 2023  February 28, 2023 
 Investments at Fair Value Percentage of Total Portfolio Investments at Fair Value Percentage of Total Portfolio  Investments
at
Fair Value		  Percentage
of Total
Portfolio		  Investments
at
Fair Value		  Percentage
of Total
Portfolio		 
 ($ in thousands)  ($ in thousands) 
Southeast $305,772   28.2% $247,192   25.4% $287,792   26.2% $247,192   25.4%
Midwest  224,570   20.7   199,944   20.6   231,535   21.1   199,944   20.6 
West  213,620   19.7   173,283   17.8   218,300   19.9   173,283   17.8 
Northeast  132,757   12.2   133,158   13.7   143,293   13.0   133,158   13.7 
Southwest  124,942   11.5   123,744   12.7   131,946   12.0   123,744   12.7 
Northwest  2,465   0.2   92,760   9.5   2,513   0.2   2,509   0.3 
Other(1)  79,972   7.4   2,509   0.3   83,566   7.6   92,760   9.5 
Total $1,084,098   100.0% $972,590   100.0% $1,098,945   100.0% $972,590   100.0%

 

 

(1)Comprised of our investments in the subordinated notes, F-2-R-3 Notes of Saratoga CLO, as well as the unsecured notes and equity interests in the SLF JV and foreign investments.

 


 

 

Results of operations

 

Operating results for the three and six months ended MayAugust 31, 2023 and MayAugust 31, 2022 was as follows:

 

 For the three months ended  For the three months ended  For the six months ended 
 May 31,
2023		 May 31,
2022		  August 31,
2023		  August 31,
2022		  August 31,
2023		  August 31,
2022		 
 ($ in thousands)  ($ in thousands)      
Total investment income $34,632  $18,679  $35,514  $21,853  $70,146  $40,532 
Total operating expenses  18,673   10,703   21,549   14,155   40,222   24,858 
Net investment income  15,959   7,976   13,965   7,698   29,924   15,674 
Net realized gain (loss) from investments  91   163   -   7,944   91   8,106 
Income tax (provision) benefit from realized gain on investments  -   69   -   -   -   69 
Net change in unrealized appreciation (depreciation) on investments  (16,322)  (9,333)  (5,738)  (13,259)  (22,060)  (22,591)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  59   (362)  (221)  (230)  (162)  (592)
Realized losses on extinguishment of debt  (110)  (1,205)  (110)  (1,205)
Net increase (decrease) in net assets resulting from operations $(213) $(1,487) $7,896  $948  $7,683  $(539)

 

Investment income

 

The composition of our investment income for three and six months ended MayAugust 31, 2023 and MayAugust 31, 2022 was as follows:

 

 For the three months ended  For the three months ended  For the six months ended 
 May 31,
2023		 May 31,
2022		  August 31,
2023		  August 31,
2022		  August 31,
2023		  August 31,
2022		 
 ($ in thousands)  ($ in thousands)      
Interest from investments $29,558  $16,606  $32,333  $19,233  $61,891  $35,839 
Interest from cash and cash equivalents  804   -   539   34   1,343   35 
Management fee income  817   816   817   817   1,634   1,633 
Dividend Income  1,841   300   1,632   213   3,473   513 
Structuring and advisory fee income  1,429   853   45   1,408   1,474   2,260 
Other income  183   104   148   148   331   252 
Total investment income $34,632  $18,679  $35,514  $21,853  $70,146  $40,532 

 


 

 

For the three months ended MayAugust 31, 2023, total investment income increased $16.0$13.7 million, or 85.4%62.5%, to $34.6$35.5 million from $18.7$21.9 million for the three months ended MayAugust 31, 2022. Interest income from investments increased $13.0$13.1 million, or 78.0%68.1%, to $29.6$32.3 million for the three months ended MayAugust 31, 2023 from $16.6$19.2 million for the three months ended MayAugust 31, 2022. Interest income from investment increased due to the increase of $189.6$144.3 million, or 21.2%13.1%, in total investments at MayAugust 31, 2023 from $894.5$954.7 million at MayAugust 31, 2022 to $1,084.1$1,098.9 million as of MayAugust 31, 2023, combined with the increase in the weighted average current yield on investments to 11.4%11.3%, up from 7.7%9.0% at MayAugust 31, 2022.

For the six months ended August 31, 2023, total investment income increased $29.6 million, or 73.1%, to $70.1 million from $40.5 million for the six months ended August 31, 2022. Interest income from investments increased $26.1 million, or 72.7%, to $61.9 million for the six months ended August 31, 2023 from $35.8 million for the six months ended August 31, 2022. Interest income from investments increased due to the increase of $144.3 million, or 13.1%, in total investments at August 31, 2023 from $954.7 million at August 31, 2022 to $1,098.9 million as of August 31, 2023, combined with the increase in the weighted average current yield on investments to 11.3%, up from 9.0% at August 31, 2022.

 

For the three and six months ended MayAugust 31, 2023 and MayAugust 31, 2022, total PIK income was $0.5$0.9 million and $0.2 million, respectively.respectively and $1.3 million and $0.4 million, respectively

 

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, interest from cash and cash equivalents was $0.8$0.5 million and $0.0 million, respectively. The increase of $0.8$0.5 million was due to the fact that cash and cash equivalents were earning close to zero interest during the three months ended MayAugust 31, 2022.

For the six months ended August 31, 2023 and August 31, 2022, interest from cash and cash equivalents was $1.3 million and $0.0 million, respectively. The increase of $1.3 million was due to the fact that cash and cash equivalents were earning close to zero interest during the three months ended August 31, 2022

 

Management fee income reflects the fee income received for managing the Saratoga CLO. For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, total management fee income was $0.8 million and $0.8 million, respectively. For the six months ended August 31, 2023 and August 31, 2022, total management fee income was $1.6 million and $1.6 million, respectively.

 

For the three and six months ended MayAugust 31, 2023 and MayAugust 31, 2022, total dividend income was $1.8$1.6 million and $0.3$0.2 million, respectively and $3.5 million and $0.5 million, respectively. Dividends received is recorded in the consolidated statements of operations when earned, and the increase primarily reflects dividend income or $1.8of $1.5 million received on the Company’sour membership interest in SLF JV during the three months ended MayAugust 31, 2023, and $3.4 million received during the six months ended August 31, 2023.

 

For the three and six months ended MayAugust 31, 2023 and MayAugust 31, 2022, total structuring and advisory fee income was $0.0 million and $1.4 million, respectively and $0.9$1.5 million and $2.3 million, respectively. Structuring and advisory fee income represents fee income earned and received performing certain investment and advisory activities during the closing of new investments.

 

For the three and six months ended MayAugust 31, 2023 and MayAugust 31, 2022, other income was $0.2$0.1 million and $0.1 million, respectively and $0.3 million and $0.3 million, respectively. Other income includes origination fees, monitoring and amendment fees and prepayment fees and is recorded in the consolidated statements of operations when earned. The increase was driven primarily by amendment fees earned in the quarter.

 

Operating expenses

 

The composition of our operating expenses for the three and six months ended MayAugust 31, 2023 and MayAugust 31, 2022 was as follows:

 

 For the three months ended  For the three months ended  For the six months ended 
 May 31,
2023		 May 31,
2022		  August 31,
2023		  August 31,
2022		  August 31,
2023		  August 31,
2022		 
 ($ in thousands)  ($ in thousands)      
Interest and debt financing expenses $11,693  $6,872  $12,414  $7,922  $24,106  $14,794 
Base management fees  4,564   3,802   4,841   4,104   9,405   7,906 
Incentive management fees expense (benefit)  103   (1,903)  2,481   590   2,585   (1,314)
Professional fees  486   417   487   368   972   785 
Administrator expenses  819   750   904   773   1,723   1,523 
Insurance  82   87   81   90   164   178 
Directors fees and expenses  89   110   111   110   200   220 
General & administrative and other expenses  831   667   467   300   1,298   967 
Income tax expense (benefit)  6   (99)  (237)  (102)  (231)  (201)
Total operating expenses $18,673  $10,703  $21,549  $14,155  $40,222  $24,858 

 


 

 

For the three months ended MayAugust 31, 2023, total operating expenses increased $8.0$7.4 million, or 74.5%52.2%, compared to the three months ended MayAugust 31, 2022. For the six months ended August 31, 2023, total operating expenses increased $15.4 million, or 61.8%, compared to the three months ended August 31, 2022.

  

For the three months ended MayAugust 31, 2023, interest and debt financing expenses increased $4.8$4.5 million, or 70.2%56.7%, compared to the three months ended MayAugust 31, 2022. The increase is primarily attributable to an increase of 32.1%29.1% in average outstanding debt from $591.3$626.7 million for the three months ended MayAugust 31, 2022 to $781.0$809.0 million for the three months ended MayAugust 31, 2023, primarily reflecting (i) the issuance of the 6.00% 2027 Notes, the 8.00% 2027 Notes, 7.00% 2025 Notes, and 8.125% 2027 Notes during the year ended February 28, 2023, and (ii) the issuance of the 8.75% 2024 Notes and the 8.50% 2028 Notes during the three months ended May 31, 2023.

 

For the threesix months ended MayAugust 31, 2023, interest and debt financing expenses increased $9.3 million, or 63.0%, compared to the six months ended August 31, 2022. The increase is primarily attributable to an increase of 30.5% in average outstanding debt from $609.0 million for the six months ended August 31, 2022 to $795.0 million for the six months ended August 31, 2023, primarily reflecting (i) the issuance of the 6.00% 2027 Notes, 8.00% 2027 Notes, 7.00% 2025 Notes, and 8.125% 2027 Notes during the year ended February 28, 2023, and (ii) the issuance of the 8.75% 2024 Notes and the 8.50% 2028 Notes during the six months ended August 31, 2023.

For the three and six months ended August 31, 2023 and MayAugust 31, 2022, the weighted average interest rate on our outstanding indebtedness was 5.34%6.01% and 4.06%4.46%, respectively and 5.66% and 4.45%, respectively. The increase in weighted average interest rate was primarily driven by the issuance of higher rate borrowings over the past year.year, reflecting the increase in base rates in the market.

 

As of MayAugust 31, 2023 and February 28, 2023, the SBA debentures represented 25.0%23.8% and 27.7% of overall debt, respectively.

 

For the three months ended MayAugust 31, 2023, base management fees increased $0.8$0.7 million, or 20.0%18.0%, from $3.8$4.1 million to $4.6$4.8 million compared to the three months ended MayAugust 31, 2022. The increase in base management fees results from the 20.4%18.3% increase in the average value of our total assets, less cash and cash equivalents, from $862.0$930.4 million for the three months ended May 31,2022August 31, 2022 to $1,037.6$1,100.5 million for the three months ended MayAugust 31, 2023. For the six months ended August 31, 2023, base management fees increased $1.5 million, or 19.0%, from $7.9 million to $9.4 million compared to the six months ended August 31, 2022. The increase in base management fees results from the 19.3% increase in the average value of our total assets, less cash and cash equivalents, from $896.2 million for the six months ended August 31, 2022 to $1,069.0 million for the six months ended August 31, 2023.

 

For the three months ended MayAugust 31, 2023, incentive management fees increased $2.0$1.6 million, or 105.4%98.4%, compared to the three months ended MayAugust 31, 2022. The incentive fee on income increased from $0.0$1.7 million to $3.2$3.3 million for the three months ended MayAugust 31, 2022 and 2023, respectively, reflecting the increase in net investment income during the three months ended August 31, 2023 as compared to the three months ended August 31, 2022. The incentive fee on capital gains increased from a $(1.1) million benefit for the three months ended August 31, 2022 to a $(0.8) million benefit for the three months ended August 31, 2023, both reflecting the incentive fee on net realized and unrealized depreciation recognized during both these periods.


For the six months ended August 31, 2023, incentive management fees increased $3.9 million, or 96.7%, compared to the six months ended August 31, 2022. The incentive fee on income increased from $1.7 million for the six months ended August 31, 2022 to $6.5 million for the six months ended August 31, 2023, reflecting the fact that net investment income increased during this current period, and was above the hurdle during the threefull six months ended MayAugust 31, 2023, which was not the case the prior three month period ended May 31, 2022.2023. The incentive fee on capital gains decreased from a $(1.9)$(3.0) million benefit for the threesix months ended MayAugust 31, 2022 to a $(3.1)$(3.9) million benefit for the threesix months ended MayAugust 31, 2023, both reflecting the incentive fee income on net realized and unrealized depreciation recognized during both these periods.

 

For the three and six months ended MayAugust 31, 2023, professional fees increased $0.07$0.1 million, or 16.5%32.2% and increased $0.2 million, or 23.8%, respectively, compared to the three and six months ended MayAugust 31, 2022.

 

For the three and six months ended MayAugust 31, 2023, administrator expenses increased $0.07$0.1 million, or 9.2%17.0% and increased $0.2 million, or 13.1%, respectively, compared to the three and six months ended MayAugust 31, 2022.

For the three and six months ended August 31, 2023, general and other expenses increased $0.2 million, or 55.7% and increased $0.3 million, or 34.2%, respectively, compared to the three and six months ended August 31, 2022.

 

As discussed above, the increase in interest and debt financing expenses for the three months ended MayAugust 31, 2023 compared to the three months ended MayAugust 31, 2022 is attributable both to an increase in the average dollar amount of outstanding debt, as well as the higher cost of that debt. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average borrowings outstanding under the Encina Credit Facility was $46.7$35.0 million and $20.0$25.0 million, respectively, and the average weighted average interest rate on the outstanding borrowing under the Encina Credit Facility was 9.41%9.75% and 4.86%5.83%, respectively. For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average borrowings outstanding of SBA debentures was $202.0$202.6 million and $214.9$222.0 million, respectively. For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 2.88%2.90% and 2.58%2.75%, respectively.

 

As discussed above, the increase in interest and debt financing expenses for the six months ended August 31, 2023 compared to the six months ended August 31, 2022 is attributable both to an increase in the average dollar amount of outstanding debt, as well as the higher cost of that debt. During the six months ended August 31, 2023 and August 31, 2022, the average borrowings outstanding under the Encina Credit Facility was $40.9 million and $22.5 million, respectively, and the average weighted average interest rate on the outstanding borrowing under the Encina Credit Facility was 9.56% and 5.40%, respectively. For the six months ended August 31, 2023 and August 31, 2022, the average borrowings outstanding of SBA debentures was $202.3 million and $218.4 million, respectively. For the six months ended August 31, 2023 and August 31, 2022, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 2.89% and 2.67%, respectively.


 

During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the weighted average dollar amount of our 7.25% 2025 Notes outstanding was $0.0 million and $43.1$10.8 million, respectively. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the weighted average dollar amount of our 7.75% 2025 Notes outstanding was $5.0 million and $5.0 million, respectively. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of our 6.25% 2027 Notes outstanding was $15.0 million and $15.0 million, respectively. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of our 4.375% 2026 Notes outstanding was $175.0 million and $175.0 million, respectively. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of our 4.35% 2027 Notes outstanding was $75.0 million and $75.0 million, respectively. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of our 6.00% 2027 Notes outstanding was $105.5 million and $43.8$99.0 million, respectively. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of our 7.00% 2025 Notes outstanding was $12.0 million and $0.0 million, respectively. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of our 8.00% 2027 Notes outstanding was $46.0 million and $0.0 million, respectively. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of our 8.125% 2027 Notes outstanding was $60.4 million and $0.0 million, respectively. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of our 8.75% 2024 Notes outstanding was $10.0$20.0 million and $0.0 million, respectively. During the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, the average dollar amount of our 8.50% 2028 Notes outstanding was $28.4$57.5 million and $0.0 million, respectively.

 


During the six months ended August 31, 2023 and August 31, 2022, the weighted average dollar amount of our 7.25% 2025 Notes outstanding was $0.0 million and $27.0 million, respectively. During the six months ended August 31, 2023 and August 31, 2022, the weighted average dollar amount of our 7.75% 2025 Notes outstanding was $5.0 million and $5.0 million, respectively. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of our 6.25% 2027 Notes outstanding was $15.0 million and $15.0 million, respectively. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of our 4.375% 2026 Notes outstanding was $175.0 million and $175.0 million, respectively. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of our 4.35% 2027 Notes outstanding was $75.0 million and $75.0 million, respectively. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of our 6.00% 2027 Notes outstanding was $105.5 million and $44.0 million, respectively. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of our 7.00% 2025 Notes outstanding was $12.0 million and $0.0 million, respectively. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of our 8.00% 2027 Notes outstanding was $46.0 million and $0.0 million, respectively. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of our 8.125% 2027 Notes outstanding was $60.4 million and $0.0 million, respectively. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of our 8.75% 2024 Notes outstanding was $15.0 million and $0.0 million, respectively. During the six months ended August 31, 2023 and August 31, 2022, the average dollar amount of our 8.50% 2028 Notes outstanding was $42.9 million and $0.0 million, respectively.

For the three months ended MayAugust 31, 2023 and MayAugust 31, 2022, there were income tax expense (benefits) of $0.01($0.2) million and ($0.1) million, respectively. For the six months ended August 31, 2023 and August 31, 2022, there were income tax expense (benefits) of ($0.2) million and ($0.2) million, respectively. This relates to net deferred federal and state income tax expense (benefit) with respect to operating gains and losses and income derived from equity investments held in entities that are treated as corporations for U.S. federal income tax purposes, as well as current U.S. federal and state income taxes on those operating gains and losses when realized.

 

Net realized gains (losses) on sales of investments

 

For the three months Mayended August 31, 2023, we had $6.0 million of sales, repayments, exits or restructurings. For the Companysix months ended August 31, 2023, we had $11.1$17.1 million of sales, repayments, exits or restructurings resulting in $0.09 million of net realized gains.

 

ThreeSix Months ended MayAugust 31, 2023

 

Issuer Asset Type Gross
Proceeds		  Cost  Net
Realized
Gain (Loss)		 
PDDS Buyer, LLC Equity Interests $              -  $              -  $41,350 
Censis Technologies, Inc. Equity Interests  -   -   6,773 
GreyHeller LLC Equity Interests  -   -   42,568 

 

The CompanyWe received escrow payments from the prior sales of itsour investments in PPDS Buyer, LLC, Censis Technologies, Inc. and GreyHeller LLC.

 

For the three months Mayended August 31, 2022, the Companywe had $10.1$75.1 million of sales, repayments, exits or restructurings resulting in $0.2$7.9 million of net realized gains. For the six months ended August 31, 2022, we had $85.2 million of sales, repayments, exits or restructurings resulting in $8.1 million of net realized gains. 

 

ThreeSix Months ended MayAugust 31, 2022

 

Issuer Asset Type Gross
Proceeds		 Cost Net
Realized
Gain		  Asset Type Gross Proceeds  Cost  Net
Realized
Gain		 
PDDS Buyer, LLC Equity Interests $9,943,838  $2,000,000  $7,943,838 
Censis Technologies, Inc. Equity Interests $      -  $      -  $68,731  Equity Interests  -   -   68,731 
Texas Teachers of Tomorrow, LLC Equity Interests  -   -   24,977  Equity Interests  -   -   24,977 
V Rental Holdings LLC Equity Interests  -   -   68,800  Equity Interests  -   -   68,800 

 

The Company$7.9 million of net realized gains was from the sale of the equity position in our PPDS Buyer investment.

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

 


 

 

Net change in unrealized appreciation (depreciation) on investments

 

For the threesix months ended MayAugust 31, 2023, our investments had a net change in unrealized depreciation of $16.3$22.1 million versus a net change in unrealized depreciation of $9.3$22.6 million for the threesix months ended MayAugust 31, 2022.

The most significant cumulative net change in unrealized appreciation (depreciation) for the three months ended MayAugust 31, 2023 were the following (dollars in thousands):

 

ThreeSix Months ended MayAugust 31, 2023

 

Issuer Asset Type Cost Fair Value Total
Unrealized
Appreciation
(Depreciation)		 YTD
Change in
Unrealized
Appreciation
(Depreciation)		  Asset Type Cost  Fair Value  Total Unrealized Appreciation (Depreciation)  YTD Change in Unrealized Appreciation (Depreciation) 
Pepper Palace, Inc. First Lien Term Loan & Equity Interests $34,308  $7,940  $(26,368) $(16,523)
Saratoga Senior Loan Fund I JV, LLC Equity Interests  35,202   27,392   (7,810)  (3,334)
Netreo Holdings, LLC First Lien Term Loan & Equity Interests $36,034  $40,994  $4,960  $(3,320) First Lien Term Loan & Equity Interests  36,181   41,255   5,074   (3,206)
Saratoga Investment Corp. CLO 2013-1, Ltd. Structured Finance Securities  27,158   13,716   (13,442)  (5,674) Structured Finance Securities  25,120   15,207   (9,912)  (2,145)
Saratoga Senior Loan Fund I JV, LLC 

Unsecured Loan & Equity Interests

  35,202   25,367   (9,835)  (5,359)

The $16.5 million of unrealized depreciation in our investment Pepper Palace, Inc. was driven by further declines in performance.

 

The $3.3 million of unrealized depreciation in our investment Saratoga Senior Loan Fund I, JV, LLC was driven by the impact of overall market conditions.

The $3.2 million of unrealized depreciation in our investment Netreo Holdings, LLC was driven by increased company leverage and decreased performance.

 

The $5.7$2.1 million of unrealized depreciation in our investment Saratoga Investment Corp. CLO 2013-1, Ltd. was driven by the reduction in the carrying value of certain defaulted loans in the portfolio, as well as overall market conditions.

 

The $5.4most significant cumulative net change in unrealized appreciation (depreciation) for the six months ended August 31, 2022 were the following (dollars in thousands):

Six Months ended August 31, 2022

Issuer Asset Type Cost  Fair Value  Total Unrealized Appreciation  YTD Change in Unrealized Appreciation 
Artemis Wax Corp. First Lien Term Loan & Equity Interests $55,023  $58,657  $3,634  $2,174 
Netreo Holdings, LLC First Lien Term Loan & Equity Interests  31,330   40,506   9,176   (1,468)
PDDS Buyer, LLC First Lien Term Loan & Equity Interests  -   -   -   (5,094)
Pepper Palace, Inc. First Lien Term Loan & Equity Interests  34,383   26,992   (7,391)  (6,872)
Saratoga Investment Corp. CLO 2013-1, Ltd. Structured Finance Securities  39,489   32,327   (7,162)  (3,543)
Saratoga Senior Loan Fund I JV, LLC Equity Interests  14,072   6,727   (7,345)  (6,236)
Zollege PBC First Lien Term Loan & Equity Interests  16,635   15,211   (1,424)  (1,289)


The $2.2 million of unrealized appreciation in our investment in Artemis Wax Corp. was driven by growth and improved financial performance.

The $1.5 million of unrealized depreciation in our investment Netreo Holdings, LLC was driven by increased company leverage.

The $5.1 million of unrealized depreciation in our investment PDDS Buyer, LLC was driven by the sale of that investment, resulting in a reversal of previously recognized unrealized appreciation reclassified to realized gains.

The $6.9 million of unrealized depreciation in our investment Pepper Palace, Inc. was driven by overall company performance.

The $3.5 million of unrealized depreciation in our investment Saratoga Investment Corp. CLO 2013-1, Ltd was driven by the increase in discount rates, impact of LIBOR changes and overall market conditions.

The $6.2 million of unrealized depreciation in our investment Saratoga Senior Loan Fund I, JV, LLC was driven by the impact of overall market conditions.

The most significant cumulative net change in unrealized appreciation (depreciation) for the three months ended May 31, 2022 were the following (dollars in thousands):

Three Months ended May 31, 2022

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

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

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

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

 

The $3.2$1.3 million net change inof unrealized depreciation in our investment in Saratoga Investment Corp. CLO 2013-1, Ltd.Zollege PBC was primarily driven by the increase in discount rates, impact of LIBOR changes and overall market conditions. company performance.

 

Changes in net assets resulting from operations

 

For the three months ended MayAugust 31, 2023, we recorded a net decreaseincrease in net assets resulting from operations of $0.2$7.9 million. Based on 11,862,16312,158,440 weighted average common shares outstanding as of MayAugust 31, 2023, our per share net decrease in net assets resulting from operations was $0.02$0.65 for the three months ended MayAugust 31, 2023. For the three months ended MayAugust 31, 2022, we recorded a net increase in net assets resulting from operations of $1.0 million. Based on 11,963,276 weighted average common shares outstanding as of August 31, 2022, our per share net decrease in net assets resulting from operations was $0.08 for the three months ended August 31, 2022. 

For the six months ended August 31, 2023, we recorded a net increase in net assets resulting from operations of $7.7 million. Based on 12,011,180 weighted average common shares outstanding as of August 31, 2023, our per share net decrease in net assets resulting from operations was $0.64 for the six months ended August 31, 2023. For the six months ended August 31, 2022, we recorded a net decrease in net assets resulting from operations of $1.5$0.5 million. Based on 12,112,37212,037,855 weighted average common shares outstanding as of MayAugust 31, 2022, our per share net decrease in net assets resulting from operations was $0.12$0.04 for the threesix months ended MayAugust 31, 2022. 

 


 

 

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

 

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

 

Although we expect to fund the growth of our investment portfolio through the net proceeds from future equity offerings, including our dividend reinvestment plan (“DRIP”), the ATM Program, and issuances of senior securities or future borrowings, to the extent permitted by the 1940 Act, we cannot assure you that our plans to raise capital will be successful. In this regard, because our common stock has historically traded at a price below our current NAV per share and we are limited in our ability to sell our common stock at a price below NAV per share, we have been and may continue to be limited in our ability to raise equity capital. Consistent with the terms of the ATM Program, the Manager may, from time to time and in its sole discretion, contribute proceeds necessary to ensure that no sales are made at a price below the then-current NAV per share.

 

In addition, we intend to distribute to our stockholders substantially all of our operating taxable income in order to satisfy the distribution requirement applicable to RICs under the Code. In satisfying this distribution requirement, in accordance with certain applicable provisions of the Code and the Treasury regulations and a revenue procedure issued by the Internal Revenue Service (“IRS”), a RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder may elect to receive his or her entire distribution in either cash or stock of the RIC subject to a limitation that the aggregate amount of cash to be distributed to all stockholders must be at least 20% of the aggregate declared distribution. We may rely on the revenue procedure in future periods to satisfy our RIC distribution requirement.

 

Also, as a BDC, we generally are required to meet a coverage ratio of total assets, less liabilities and indebtedness not represented by senior securities, to total senior securities, which include all of our borrowings and any outstanding preferred stock, of at least 200%, reduced to 150% effective April 16, 2019 following the approval received from theour board of directors, including a majority of our independent directors, on April 16, 2018. This requirement limits the amount that we may borrow. Our asset coverage ratio, as defined in the 1940 Act, was 155.7%159.7% as of MayAugust 31, 2023 and 165.9% as of February 28, 2023. To fund growth in our investment portfolio in the future, we anticipate needing to raise additional capital from various sources, including the equity markets and other debt-related markets, which may or may not be available on favorable terms, if at all.

 

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

 

Due to the diverse capital sources available to us at this time, we believe we have adequate liquidity to support our near term capital requirements.

 


Madison Revolving Credit Facility

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

Encina Credit Facility

 

Below is a summary of the terms of the senior secured revolving credit facility we entered into with Encina Lender Finance, LLC on October 4, 2021.

 

Commitment. The CompanyWe entered into the Credit and Security Agreement (the “Credit Agreement”) relating to the Encina Credit Facility in the initial facility amount of $50.0 million (the “Facility Amount”). 

 

Availability. The CompanyWe can draw up to the lesser of (i) the Facility Amount and (ii) the Borrowing Base. The Borrowing Base is an amount equal to (i) the difference of (A) the product of the applicable advance rate which varies from 50.0% to 75.0% depending on the type of loan asset (Defaulted Loans being excluded in that they carry an advance rate of 0%) and the value, determined in accordance with the Encina Credit Facility (the “Adjusted Borrowing Value”), of certain “eligible” loan assets pledged as security for the loan (the “Borrowing Base Value”) and (B) the Excess Concentration Amount, as calculated in accordance with the Encina Credit Facility, plus (ii) any amounts held in the Prefunding Account and, without duplication, Excess Cash held in the Collection Account, less (iii) the product of (a) the amount of any undrawn funding commitments the Company haswe have under any loan asset and (b) the Unfunded Exposure Haircut Percentage, and less (iv) $100,000. Each loan asset we held by the Company as of the date on which the Encina Credit Facility was closed was valued as of that date and each loan asset that the Company acquireswe acquire after such date will be valued at the lowest of its fair value, its face value (excluding accrued interest) and the purchase price paid for such loan asset. Adjustments to the value of a loan asset will be made to reflect, among other things and under certain circumstances, changes in its fair value, a default by the obligor on the loan asset, insolvency of the obligor, acceleration of the loan asset, and certain modifications to the terms of the loan asset.

 


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

 

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

 

Collateral. The Encina Credit Facility is secured by assets of Saratoga Investment Funding II LLC (“SIF II”) and pledged to the lender under the credit facility. SIF II is a wholly owned special purpose entity formed by the Company for the purpose of entering into the Encina Credit Facility.


 

Interest Rate and Fees. Under the Encina Credit Facility, funds were borrowed from or through certain lenders at the greater of the prevailing LIBOR rate and 0.75%, plus an applicable margin of 4.00%. The Credit Agreement includes benchmark replacement provisions which permit the Administrative Agent and the borrower to select a replacement rate upon the unavailability of LIBOR. In addition, the Company payswe pay the lenders a commitment fee of 0.75% per year (or 0.50% if the ratio of advances outstanding to aggregate commitments is greater than or equal to 50%) on the unused amount of the Encina Credit Facility for the duration of the term of the Encina Credit Facility. Accrued interest and commitment fees are payable monthly in arrears. The Company wasWe were also obligated to pay certain other fees to the lenders in connection with the closing of the Encina Credit Facility.

 

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

 

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

 

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

 

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


 

Priority of Payments. The priority of payments provisions of the Encina Credit Facility require, after payment of specified fees and expenses, that collections of interest from the loan assets and, to the extent that these are insufficient, collections of principal from the loan assets, be applied on each payment date to payment of outstanding borrowings if the Borrowing Base Test, the Overcollateralization Ratio and the Interest Coverage Ratio would not otherwise be met.

 

Operating Expenses. The priority of payments provision of the Encina Credit Facility provides for the payment of certain of our operating expenses of the Company out of collections on interest and principal in accordance with the priority established in such provision. The operating expenses payable pursuant to the priority of payment provisions is limited to $200,000 per annum.


 

Covenants; Representations and Warranties; Events of Default. The Credit Agreement contains customary representations and warranties, affirmative covenants, negative covenants and events of default. The Credit Agreement does not contain grace periods for breach by the Companyus of any negative covenants or of certain of the affirmative covenants, including, without limitation, those related to preservation of the existence and separateness of the Company. Other events of default under the Credit Agreement include, among other things, the following:

 

 oFailure of the CompanyOur failure to maintain an Interest Coverage Ratio of less than 175%;

 

 oFailureOur failure of the Company to maintain an Overcollateralization Ratio of less than 200%;

 

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

 

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

 

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

 

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

 

Fees and Expenses. The CompanyWe paid certain fees and reimbursed Encina Lender Finance, LLC for the aggregate amount of all documented, out-of-pocket costs and expenses, including the reasonable fees and expenses of lawyers, incurred by Encina Lender Finance, LLC in connection with the Encina Credit Facility and the carrying out of any and all acts contemplated thereunder up to and as of the date of closing. These amounts totaled $1.4 million.

 

On January 27, 2023, we entered into the first amendment to the Credit Agreement to, among other things:

 

 ●increased the borrowings available under the Encina Credit Facility from up to $50.0 million to up to $65.0 million;

 

 ●changed the underlying benchmark used to compute interest under the Credit Agreement from LIBOR to Term SOFR for a one-month tenor plus a 0.10% credit spread adjustment;


 

 ●increased the applicable effective margin rate on borrowings from 4.00% to 4.25%;

 

 ●extended the revolving period from October 4, 2024 to January 27, 2026;

 

 ●extended the period during which the borrower may request one or more increases in the borrowings available under the Encina Credit Facility (each such increase, a “Facility Increase”) from October 4, 2023 to January 27, 2025, and increased the maximum borrowings available pursuant to such Facility Increase from $75.0 million to $150.0 million;

 

 ●revised the eligibility criteria for eligible collateral loans to exclude certain industries in which an obligor or related guarantor may be involved; and

 

 ●amended the provisions permitting the borrower to request an extension in the Commitment Termination Date (as defined in the Credit Agreement) to allow requests to extend any applicable Commitment Termination Date, rather than a one-time request to extend the original Commitment Termination Date, subject to a notice requirement.

  

As of MayAugust 31, 2023, we had $35.0 million outstanding borrowings under the Credit Facility and $202.0$189.0 million of SBA-guaranteed debentures outstanding (which are discussed below).


  

SBA-guaranteed debentures

 

In addition, we, through three wholly owned subsidiaries, sought and obtained licenses from the SBA to operate an SBIC. In this regard, our wholly owned subsidiaries, Saratoga Investment Corp. SBIC LP (“SBIC LP”), Saratoga Investment Corp. SBIC II LP (“SBIC II LP”), and Saratoga Investment Corp. SBIC III LP (“SBIC III LP”, and together with SBIC LP and SBIC II LP, the “SBIC Subsidiaries”), received an SBIC license from the SBA on March 28, 2012, August 14, 2019, and September 29, 2022, respectively. SBICs are designated to stimulate the flow of private equity capital to eligible small businesses. Under SBA regulations, SBICs may make loans to eligible small businesses and invest in the equity securities of small businesses.

 

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

 

The SBIC Subsidiaries are regulated by the SBA. SBA regulations currently limit the amount that our SBIC Subsidiaries may borrow to a maximum of $175.0 million of SBA debentures when it has at least $87.5 million in regulatory capital, subject to the SBA’s approval. Under current SBIC regulations, for two or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $350.0 million. Our wholly owned SBIC Subsidiaries are able to borrow funds from the SBA against regulatory capital (which generally approximates equity capital in the respective SBIC) and is subject to customary regulatory requirements, including, but not limited to, periodic examination by the SBA.

 

We received exemptive relief from the SEC to permit us to exclude the debt of our SBIC Subsidiaries guaranteed by the SBA from the definition of senior securities in the asset coverage test under the 1940 Act. This allows us increased flexibility under the asset coverage test by permitting us to borrow up to $350.0 million more than we would otherwise be able to absent the receipt of this exemptive relief. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, our board of directors, including a majority of our independent directors, approved of our becoming subject to a minimum asset coverage ratio of 150% from 200% under Sections 18(a)(1) and 18(a)(2) of the Investment Company Act, as amended. The 150% asset coverage ratio became effective on April 16, 2019.

  

As of MayAugust 31, 2023 SBIC LP had $75.0 million in regulatory capital and $27.0$0.0 million in SBA-guaranteed debentures outstanding, SBIC II LP had $87.5 million in regulatory capital and $175.0 million in SBA-guaranteed debentures outstanding and SBIC III LP had $66.7 million in regulatory capital and $0.0$14.0 million in SBA-guaranteed debentures outstanding.


 

 

Unsecured notes

In May 2013, the Company issued $48.3 million in aggregate principal amount of 7.50% fixed-rate notes due 2020 (the “7.50% 2020 Notes”). The 20207.25% 2025 Notes were redeemed in full on January 13, 2017 and are no longer listed on the NYSE.

On May 29, 2015, we entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which we may offer for sale, from time to time, up to $20.0 million in aggregate principal amount of the 7.50% 2020 Notes through an ATM offering. Prior to the 2020 Notes being redeemed in full, the Company had sold 539,725 units of the 7.50% 2020 Notes with a principal of $13.5 million at an average price of $25.31 for aggregate net proceeds of $13.4 million (net of transaction costs).

On December 21, 2016, we issued $74.5 million in aggregate principal amount of our 6.75% 2023 Notes for net proceeds of $71.7 million after deducting underwriting commissions of approximately $2.3 million and offering costs of approximately $0.5 million. The net proceeds from the offering were used to repay all of the outstanding indebtedness under the 2020 Notes on January 13, 2017, which amounted to $61.8 million, and for general corporate purposes in accordance with our investment objective and strategies. On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.5 million, respectively, in aggregate principal amount of the 6.75% 2023 Notes and they are no longer listed on the NYSE.

On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of our 6.25% fixed-rate notes due 2025 (the “6.25% 2025 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.3 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $5.0 million aggregate principal amount of 6.25% 2025 Notes within 30 days. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes. The 6.25% 2025 Notes are no longer listed on the NYSE under the trading symbol “SAF” with a par value of $25.00 per note.

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

On August 31, 2021, the Company redeemed $60.0 million aggregate principal amount of the issued and outstanding 6.25% 2025 Notes at par, and the 6.25% 2025 Notes are no longer listed on the NYSE.

On June 24, 2020, the Companywe issued $37.5 million aggregate principal amount of our 7.25% 2025 Notes for net proceeds of $36.3 million after deducting underwriting commissions of approximately $1.2 million. Offering costs incurred were approximately $0.3 million. On July 6, 2020, the underwriters exercised their option in full to purchase an additional $5.625 million in aggregate principal amount of its 7.25% 2025 Notes. Net proceeds to the Company were $5.4 million after deducting underwriting commissions of approximately $0.2 million. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 7.25% 2025 Notes have been capitalized and were amortized over the term of the 7.25% 2025 Notes. On July 14, 2022, the Companywe redeemed $43.1 million in aggregate principal amount of the issued and outstanding 7.25% 2025 Notes. The 7.25% 2025 Notes were listed on the NYSE under the trading symbol of “SAK” and have been delisted following the full redemption on July 14, 2022.

 


On July 14, 2022, the Companywe redeemed $43.1 million in aggregate principal amount of the issued and outstanding 7.25% 2025 Notes. The 7.25% 2025 Notes were listed on the NYSE under the trading symbol of “SAK” and have been delisted following the full redemption on July 14, 2022. 

 

7.75% 2025 Notes

On July 9, 2020, the Companywe issued $5.0 million aggregate principal amount of our 7.75% fixed-rate notes due in 2025 (the “7.75% 2025 Notes”) for net proceeds of $4.8 million after deducting underwriting commissions of approximately $0.2 million. Offering costs incurred were approximately $0.1 million. Interest on the 7.75% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.75% per year. The 7.75% 2025 Notes mature on July 9, 2025 and may be redeemed in whole or in part at any time or from time to time at our option, subject to a fee depending on the date of repayment. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 7.75% 2025 Notes have been capitalized and are being amortized over the term of the Notes. The 7.75% 2025 Notes are not listed and have a par value of $25.00 per note.

 

At MayAugust 31, 2023, the total 7.75% 2025 Notes outstanding was $5.0 million.

 

6.25% 2027 Notes

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

 

On January 28, 2021, the Companywe issued $10.0 million aggregate principal amount of the Second 6.25% 2027 Notes for net proceeds of $9.7 million after deducting underwriting commissions of approximately $0.3 million. Offering costs incurred were approximately $0.1 million. Interest on the 6.25% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year. The 6.25% 2027 Notes mature on January 28, 2027 and commencing January 28, 2023, may be redeemed in whole or in part at any time or from time to time at our option on or after December 29, 2024. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.4 million related to the 6.25% 2027 Notes have been capitalized and are being amortized over the term of the Notes.

  


At MayAugust 31, 2023, the total 6.25% 2027 Notes outstanding was $15.0 million.

 

4.375% 2026 Notes

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

 

On July 15, 2021, the Companywe issued an additional $125.0 million aggregate principal amount of the Company’s 4.375% 2026 Notes (the “Additional 4.375% 2026 Notes”) for net proceeds for approximately $123.5$123.8 million, based on the public offering price of 101.00% of the aggregate principal amount of the Additional 4.375% 2026 Notes, after deducting the underwriting discountcommission of $2.5 million and the offering expenses ofmillion. Offering costs incurred were approximately $0.2 million payable by the Company.million. The net proceeds from the offering were used to redeem all of the outstanding 6.25% 2025 Notes (as described above), and for general corporate purposes in accordance with our investment objective and strategies. The Additional 4.375% 2026 Notes were treated as a single series with the existing 4.375% 2026 Notes under the indenture and had the same terms as the existing 4.375% 2026 Notes.

 


At MayAugust 31, 2023, the total 4.375% 2026 Notes outstanding was $175.0 million.

 

4.35% 2027 Notes

On January 19, 2022, the Companywe issued $75.0 million aggregate principal amount of our 4.35% fixed-rate Notes due in 2027 (the “4.35% 2027 Notes”) for net proceeds of $73.0 million, based on the public offering price of 99.317% of the aggregate principal amount of the 4.35% 2027 Notes, after deducting the underwriting commissions of approximately $1.5 million. Offering costs incurred were approximately $0.3 million.  Interest on the 4.35% 2027 Notes is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.35% per year, beginning August 28, 2022. The 4.35% 2027 Notes mature on February 28, 2027 and may be redeemed in whole or in part at the Company’sour option at any time prior to November 28, 2026, at par plus a “make-whole” premium, and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.8 million related to the 4.35% 2027 Notes have been capitalized and are being amortized over the term of the Notes.

 

At MayAugust 31, 2023 the total 4.35% 2027 Notes outstanding was $75.0 million.

 

6.00% 2027 Notes

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

 

On August 15, 2022, the Companywe issued an additional $8.0 million aggregate principal amount of the 6.00% 2027 Notes (the “Additional 6.00% 2027 Notes”) for net proceeds of $7.8 million, based on the public offering price of 97.80% of the aggregate principal amount of the 6.00% 2027 Notes. Additional offering costs incurred were approximately $0.2 million. The Additional 6.00% 2027 Notes are treated as a single series with the existing 6.00% 2027 Notes under the indenture and had the same terms as the existing 6.00% 2027 Notes. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Additional offering costs incurred were approximately $0.03 million. Additional financing costs of $0.03$0.3 million related to the 6.00% 2027 Notes have been capitalized and are being amortized over the term of the 6.00% 2027 Notes.

 


At MayAugust 31, 2023 the total 6.00% 2027 Notes outstanding was $105.5 million.

 

7.00% 2025 Notes

On September 8, 2022, the Companywe issued $12.0 million aggregate principal amount of our 7.00% fixed-rate notes due 2025 (the “7.00% 2025 Notes”) for net proceeds of $11.6 million after deducting customary fees and offering expensesunderwriting discounts of approximately $0.4 million. Additional offering costs incurred were approximately $0.05 million. Interest on the 7.00% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.00% per year. The 7.00% 2025 Notes mature on September 8, 2025 and commencing September 8, 2024, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.05$0.04 million related to the 7.00% 2025 Notes have been capitalized and are being amortized over the term of the 7.00% 2025 Notes.

 


At MayAugust 31, 2023 the total 7.00% 2025 Notes outstanding was $12.0 million.

 

8.00% 2027 Notes

On October 27, 2022, the Companywe issued $40.0 million aggregate principal amount of our 8.00% fixed-rate notes due 2027 (the “8.00% 2027 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.1 million. On November 10, 2022, the underwriters partially exercised their option to purchase an additional $6.0 million in aggregate principal amount of the 8.00% 2027 Notes. Net proceeds to the Company were $5.8 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 8.00% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.00% per year, beginning February 28, 2023. The 8.00% 2027 Notes mature on October 31, 2027 and commencing October 27, 2024, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.3 million related to the 8.00% 2027 Notes have been capitalized and are being amortized over the term of the 8.00% 2027 Notes. The 8.00% 2027 Notes are listed on the NYSE under the trading symbol “SAJ” with a par value of $25.00 per note.

 

At MayAugust 31, 2023 the total 8.00% 2027 Notes outstanding was $46.0 million.

 

8.125% 2027 Notes

On December 13, 2022, the Companywe issued $52.5 million aggregate principal amount of our 8.125% fixed-rate notes due 2027 (the “8.125% 2027 Notes”) for net proceeds of $50.8 million after deducting underwriting commissions of approximately $1.6 million. Offering costs incurred were approximately $0.1 million. On December 21, 2022, the underwriters fully exercised their option to purchase an additional $7.875 million in aggregate principal amount of the 8.125% 2027 Notes. Net proceeds to the Company were $7.6 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 8.125% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.125% per year, beginning February 28, 2023. The 8.125% 2027 Notes mature on December 31, 2027 and commencing December 13, 2024, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from this offering were used to make investments in middle-market companies (including investments made through our SBIC subsidiaries) in accordance with our investment objective and strategies and for general corporate purposes. Financing costs of $2.0 million related to the 8.125% 2027 Notes have been capitalized and are being amortized over the term of the 8.125% 2027 Notes. The 8.125% 2027 Notes are listed on the NYSE under the trading symbol “SAY” with a par value of $25.00 per note.

 


At MayAugust 31, 2023, the total 8.125% 2027 Notes outstanding was $60.4 million.

 

8.75% 2024 Notes

On March 31, 2023, the Companywe issued $10.0 million in aggregate principal amount of our 8.75% fixed-rate notes due 2024 (the “8.75% 2024 Notes”) for net proceeds of $9.7 million after deducting underwriting discounts of approximately $0.4 million. On May 1, 2023, the Companywe issued an additional $10.0 million in aggregate principal amount of the 8.75% 2024 Notes for net proceeds of $9.7 million after deducting underwriting discounts of approximately $0.4 million. Offering costs incurred were approximately $0.03 million. Interest on the 8.75% 2024 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.75% per year, beginning May 31, 2023.  The 8.75% 2024 Notes mature on March 31, 2024. Net proceeds from this offering were used to make investments in middle-market companies (including investments made through our SBIC Subsidiaries) in accordance with our investment objective and strategies and general corporate purposes. Financing costs of $0.7 million related to the 8.75% 2024 Notes have been capitalized and are being amortized over the term of the 8.75% 2024 Notes.

 

At MayAugust 31, 2023, the total 8.75% 2024 Notes outstanding was $20.0 million.

 

8.50% 2028 Notes

On April 14, 2023, the Companywe issued $50.0 million in aggregate principal amount of our 8.50% fixed-rate notes due 2028 (the “8.50% 2028 Notes”) for net proceeds of $48.4 million after deducting underwriting commissions of approximately $1.6 million. Offering costs incurred were approximately $0.03 million. On April 26, 2023, the underwriters fully exercised their option to purchase an additional $7.5 million in aggregate principal amount of the 8.50% 2028 Notes. Net proceeds to the Company were $7.3 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 8.50% 2028 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.50% per year, beginning May 31, 2023.  The 8.50% 2028 Notes mature on April 15, 2028, and commencing April 14, 2025, may be redeemed in whole or in part at any time or from time to time at our option. Net proceeds from this offering were used to repay a portion of the outstanding indebtedness under the Encina Credit Facility, make investments in middle-market companies (including investments made through our SBIC Subsidiaries) in accordance with our investment objective and strategies and for general corporate purposes. Financing costs of $2.0 million related to the 8.50% 2028 Notes have been capitalized and are being amortized over the term of the 8.50% 2028 Notes. The 8.50% 2028 Notes are listed on the NYSE under the trading symbol “SAZ” with a par value of $25.00 per share.


 

At MayAugust 31, 2023, the total 8.50% 2028 Notes outstanding was $57.5 million.

 

At MayAugust 31, 2023 and February 28, 2023, the fair value of investments, cash and cash equivalents and cash and cash equivalents, reserve accounts were as follows:

 

 May 31, 2023 February 28, 2023  August 31, 2023  February 28, 2023 
 Fair Value Percentage of Total Fair Value Percentage of Total  Fair Value  Percentage of
Total		  Fair Value  Percentage of
Total		 
 ($ in thousands)  ($ in thousands) 
Cash and cash equivalents $21,987   2.0% $65,746   6.2% $19,305   1.8% $65,746   6.2%
Cash and cash equivalents, reserve accounts  31,166   2.7   30,330   2.8   29,128   2.5   30,330   2.8 
First lien term loans  917,590   80.7   798,534   74.7   929,392   81.0   798,534   74.7 
Second lien term loans  15,185   1.3   14,936   1.4   15,326   1.3   14,936   1.4 
Unsecured term loans  20,744   1.8   41,362   3.9   17,619   1.5   41,362   3.9 
Structured finance securities  33,906   3.0   20,661   1.9   35,609   3.1   20,661   1.9 
Equity interests  96,673   8.5   97,097   9.1   100,999   8.8   97,097   9.1 
Total $1,137,251   100.0% $1,068,666   100.0% $1,147,378   100.0% $1,068,666   100.0%

Equity Capital Activities

 

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

 

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

 


On July 30, 2021, we entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Ladenburg Thalmann & Co. Inc. and Compass Point Research and Trading, LLC, each as agents (the “Agents”) in connection, through which we may offer for sale, from time to time, up to $150.0 million of our common stock through the Agents, or to them, as principal for their account (the “ATM Program”).

On July 6, 2023, we amended the Equity Distribution Agreement to increase the maximum amount of shares of our common stock to be sold through the ATM Program to $300.0 million from $150.0 million, and on July 19, 2023, we amended the Equity Distribution Agreement to add an additional distribution agent, Raymond James & Associates. The sales price per share of our common stock offered under the ATM Program, less the Agents’ commission, will not be less than the NAV per share of our common stock at the time of such sale. Consistent with the terms of the ATM Program. Program, the Manager may, from time to time and in its sole discretion, contribute proceeds necessary to ensure that no sales are made at a price below the then-current NAV per share.

As of MayAugust 31, 2023, the Companywe sold 4,840,3615,692,773 shares for gross proceeds of $124.0$148.3 million at an average price of $25.61$26.06 for aggregate net proceeds of $122.4$146.8 million (net of transaction costs). During the three months ended MayAugust 31, 2023, there were nowe sold 852,412 shares for gross proceeds of $24.3 million at an average price of $28.56 for aggregate net proceeds of $24.3 million (net of transaction costs). During the six months ended August 31, 2023, we sold pursuant852,412 shares for gross proceeds of $24.3 million at an average price of $28.56 for aggregate net proceeds of $24.3 million (net of transaction costs). The Manager agreed to reimburse the Company to the equity distribution agreement withextent the Agents.per share price of the shares to the public, less underwriting fees, was less than net asset value per share. For the three months ended August 31, 2023, the Manager reimbursed the Company $2.1 million. For the six months ended August 31, 2023, the Manager reimbursed the Company $2.1 million.

 

On September 24, 2014, the Companywe announced the approval of the Share Repurchase Plan. Since September 24, 2014, the Share Repurchase Plan has been extended annually, and the Company haswe have periodically increased the amount of shares of common stock that may be purchased under the Share Repurchase Plan. Most recently, on January 9, 2023, our board of directors extended the Share Repurchase Plan for another year to January 15, 2024, increasing the number of shares that may be repurchased under the Share Repurchase Plan to 1.7 million shares of common stock. As of MayAugust 31, 2023, the Companywe had purchased 1,035,203 shares of common stock, at the average price of $22.05 for approximately $22.8 million pursuant to the Share Repurchase Plan. During the three months ended MayAugust 31, 2023, we did not purchase any shares pursuant to the CompanyShare Repurchase Plan. During the six months ended August 31, 2023, we purchased 88,576 shares of common stock, at the average price $24.36 for approximately $2.2 million pursuant to the Share Repurchase Plan.

 


 

 

Dividend Distributions

 

We have distributed or intend to distribute sufficient dividends to eliminate taxable income for our completed tax years. If we fail to satisfy the 90% distribution requirement or otherwise fail to qualify as a RIC in any tax year, we would be subject to tax in that year on all of our taxable income, regardless of whether we made any distributions to our shareholders. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Our distributions from MayAugust 31, 2023 back to inception were as follows:

 

Payment date Cash Dividend  Cash Dividend 
Tax Year Ended February 28, 2024      
September 28, 2023 $0.71(43)
June 29, 2023 $0.70(42)  0.70(42)
March 30, 2023  0.69(1)  0.69(1)
 $1.39  $2.10 
Tax Year Ended February 28, 2023       
January 4, 2023 $0.68(2) $0.68(2)
September 29, 2022 0.54(3)  0.54(3)
June 29, 2022 0.53(4)  0.53(4)
March 28, 2022  0.53(5)  0.53(5)
 $2.28  $2.28 
Tax Year Ended February 28, 2022       
January 19, 2022 $0.53(6) $0.53(6)
September 28, 2021 0.52(7)  0.52(7)
June 29, 2021 0.44(8)  0.44(8)
April 22, 2021  0.43(9)  0.43(9)
 $1.92  $1.92 
Tax Year Ended February 28, 2021       
February 10, 2021 $0.42(10) $0.42(10)
November 10, 2020 0.41(11)  0.41(11)
August 12, 2020  0.40(12)  0.40(12)
 $1.03  $1.03 
Tax Year Ended February 29, 2020       
February 6, 2020 $0.56(13) $0.56(13)
September 26, 2019 0.56(14)  0.56(14)
June 27, 2019 0.55(15)  0.55(15)
March 28, 2019  0.54(16)  0.54(16)
 $2.21  $2.21 
Tax Year Ended February 28, 2019       
January 2, 2019 $0.53(17) $0.53(17)
September 27, 2018 0.52(18)  0.52(18)
June 27, 2018 0.51(19)  0.51(19)
March 26, 2018  0.50(20)  0.50(20)
 $2.06  $2.06 
Tax Year Ended February 28, 2018       
December 27, 2017 $0.49(21) $0.49(21)
September 26, 2017 0.48(22)  0.48(22)
June 27, 2017 0.47(23)  0.47(23)
March 28, 2017  0.46(24)  0.46(24)
 $1.90  $1.90 
Tax Year Ended February 28, 2017       
February 9, 2017 $0.45(25) $0.45(25)
November 9, 2016 0.44(26)  0.44(26)
September 5, 2016 0.20(27)  0.20(27)
August 9, 2016 0.43(28)  0.43(28)
April 27, 2016  0.41(29)  0.41(29)
 $1.93  $1.93 
Tax Year Ended February 29, 2016       
February 29, 2016 $0.40(30) $0.40(30)
November 30, 2015 0.36(31)  0.36(31)
August 31, 2015 0.33(32)  0.33(32)
June 5, 2015 1.00(33)  1.00(33)
May 29. 2015  0.27(34)  0.27(34)
 $2.36  $2.36 
Tax Year Ended February 28, 2015    
February 27, 2015 $0.22(35)
November 28, 2014  0.18(36)
 $0.40 

 


 

 

Payment date Cash Dividend  Cash Dividend 
Tax Year Ended February 28, 2015   
February 27, 2015 $0.22(35)
November 28, 2014  0.18(36)
 $0.40 
Tax Year Ended February 28. 2014       
December 27, 2013 $2.65(37) $2.65(37)
 $2.65  $2.65 
Tax Year Ended February 28, 2013       
December 31, 2012 $4.25(38) $4.25(38)
 $4.25  $4.25 
Tax Year Ended February 29, 2012       
December 30, 2011 $3.00(39) $3.00(39)
 $3.00  $3.00 
Tax Year Ended February 28, 2011       
December 29, 2010 $4.40(40) $4.40(40)
 $4.40  $4.40 
Tax Year Ended February 28, 2010       
December 31, 2009 $18.25(41) $18.25(41)
 $18.25  $18.25 

 

(1)Based on shareholder elections, the dividend consisted of approximately $7.1 million in cash and 46,818 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.11 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on March 17, 20, 21, 22, 23, 24, 27, 28, 29, and 30, 2023.

 

(2)Based on shareholder elections, the dividend consisted of approximately $6.8 million in cash and 53,615 newly issued shares of common stock, or 0.5% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $24.26 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on December 20, 21, 22, 23, 27, 28, 29 and 30 2022 and January 3 and 4, 2023.
  
(3)Based on shareholder elections, the dividend consisted of approximately $5.3 million in cash and 52,313 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $22.00 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on September 16, 19, 20, 21, 22, 23, 26, 27, 28 and 29, 2022.
  
(4)Based on shareholder elections, the dividend consisted of approximately $5.1 million in cash and 48,590 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $22.40 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 15, 16, 17, 21, 22, 23, 24, 27, 28 and 29, 2022.


  
(5)Based on shareholder elections, the dividend consisted of approximately $5.3 million in cash and 42,825 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $25.89 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on March 15, 16, 17, 18, 21, 22, 23, 24, 25 and 28, 2022.
  
(6)Based on shareholder elections, the dividend consisted of approximately $5.3 million in cash and 41,520 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $26.85 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on January 5, 6, 7, 10, 11, 12, 13, 14, 18 and 19, 2022.
  
(7)Based on shareholder elections, the dividend consisted of approximately $4.9 million in cash and 38,016 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $26.77 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on September 15, 16, 17, 20, 21, 22, 23, 24, 27 and 28, 2021.
  
(8)Based on shareholder elections, the dividend consisted of approximately $4.1 million in cash and 33,100 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $25.03 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 16, 17, 18, 21, 22, 23, 24, 25, 28 and 29, 2021.

  


(9)Based on shareholder elections, the dividend consisted of approximately $3.9 million in cash and 38,580 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.69 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on April 9,12, 13, 14, 15, 16, 19, 20, 21 and 22, 2021.

(10)Based on shareholder elections, the dividend consisted of approximately $3.8 million in cash and 41,388 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.75 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on January 28, 29 and February 1, 2, 3, 4, 5, 8, 9 and 10, 2021.
  
(11)Based on shareholder elections, the dividend consisted of approximately $3.8 million in cash and 45,706 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.63 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on October 28, 29, 30 and November 2, 3, 4, 5, 6, 9 and 10, 2020.
  
(12)Based on shareholder elections, the dividend consisted of approximately $3.7 million in cash and 47,098 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.45 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on July 30, 31 and August 3, 4, 5, 6, 7, 10, 11 and 12, 2020.

 

(13)Based on shareholder elections, the dividend consisted of approximately $5.4 million in cash and 35,682 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $25.44 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on January 24, 27, 28, 29, 30, 31 and February 3, 4, 5 and 6, 2020.


  
(14)Based on shareholder elections, the dividend consisted of approximately $4.5 million in cash and 34,575 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.34 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on September 13, 16, 17, 18, 19, 20, 23, 24, 25 and 26, 2019.

 

(15)Based on shareholder elections, the dividend consisted of approximately $3.6 million in cash and 31,545 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $22.65 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on June 14, 17, 18, 19, 20, 21, 24, 25, 26 and 27, 2019.
  
(16)Based on shareholder elections, the dividend consisted of approximately $3.5 million in cash and 31,240 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.36 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on March 15, 18, 19, 20, 21, 22, 25, 26, 27 and 28, 2019.
  
(17)Based on shareholder elections, the dividend consisted of approximately $3.4 million in cash and 30,796 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $18.88 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on December 18, 19, 20, 21, 24, 26, 27, 28, 31, 2018 and January 2, 2019.
  
(18)Based on shareholder elections, the dividend consisted of approximately $3.3 million in cash and 25,862 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $22.35 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on September 14, 17, 18, 19, 20, 21, 24, 25, 26 and 27, 2018.

(19)Based on shareholder elections, the dividend consisted of approximately $2.7 million in cash and 21,562 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.72 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on June 14, 15, 18, 19, 20, 21, 22, 25, 26 and 27, 2018.
  
(20)Based on shareholder elections, the dividend consisted of approximately $2.6 million in cash and 25,354 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $19.91 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on March 13, 14, 15, 16, 19, 20, 21, 22, 23 and 26, 2018.

  


(21)Based on shareholder elections, the dividend consisted of approximately $2.5 million in cash and 25,435 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.14 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on December 13, 14, 15, 18, 19, 20, 21, 22, 26 and 27, 2017.
  
(22)Based on shareholder elections, the dividend consisted of approximately $2.2 million in cash and 33,551 newly issued shares of common stock, or 0.6% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.19 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on September 13, 14, 15, 18, 19, 20, 21, 22, 25 and 26, 2017.


  
(23)Based on shareholder elections, the dividend consisted of approximately $2.3 million in cash and 26,222 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.04 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on June 14, 15, 16, 19, 20, 21, 22, 23, 26 and 27, 2017.

 

(24)Based on shareholder elections, the dividend consisted of approximately $2.0 million in cash and 29,096 newly issued shares of common stock, or 0.5% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.38 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on March 15, 16, 17, 20, 21, 22, 23, 24, 27 and 28, 2017.
  
(25)Based on shareholder elections, the dividend consisted of approximately $1.6 million in cash and 50,453 newly issued shares of common stock, or 0.9% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.25 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on January 27, 30, 31 and February 1, 2, 3, 6, 7, 8 and 9, 2017.
  
(26)Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 58,548 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.12 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on October 27, 28, 31 and November 1, 2, 3, 4, 7, 8 and 9, 2016.
  
(27)Based on shareholder elections, the dividend consisted of approximately $0.7 million in cash and 24,786 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.06 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on August 22, 23, 24, 25, 26, 29, 30, 31 and September 1 and 2, 2016.

(28)Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 58,167 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.32 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on July 27, 28, 29 and August 1, 2, 3, 4, 5, 8 and 9, 2016.

 

(29)Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 56,728 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.43 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on April 14, 15, 18, 19, 20, 21, 22, 25, 26 and 27, 2016.
  
(30)Based on shareholder elections, the dividend consisted of approximately $1.4 million in cash and 66,765 newly issued shares of common stock, or 1.2% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $13.11 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on February 16, 17, 18, 19, 22, 23, 24, 25, 26 and 29, 2016.
  
(31)Based on shareholder elections, the dividend consisted of approximately $1.1 million in cash and 61,029 newly issued shares of common stock, or 1.1% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $14.53 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on November 16, 17, 18, 19, 20, 23, 24, 25, 27 and 30, 2015.


(32)Based on shareholder elections, the dividend consisted of approximately $1.1 million in cash and 47,861 newly issued shares of common stock, or 0.9% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.28 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on August 18, 19, 20, 21, 24, 25, 26, 27, 28 and 31, 2015.


  

(33)Based on shareholder elections, the dividend consisted of approximately $3.4 million in cash and 126,230 newly issued shares of common stock, or 2.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.47 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on May 22, 26, 27, 28, 29 and June 1, 2, 3, 4, and 5, 2015.
  
(34)Based on shareholder elections, the dividend consisted of approximately $0.9 million in cash and 33,766 newly issued shares of common stock, or 0.6% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.78 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on May 15, 18, 19, 20, 21, 22, 26, 27, 28 and 29, 2015.

 

(35)Based on shareholder elections, the dividend consisted of approximately $0.8 million in cash and 26,858 newly issued shares of common stock, or 0.5% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $14.97 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on February 13, 17, 18, 19, 20, 23, 24, 25, 26 and 27, 2015.
  
(36)Based on shareholder elections, the dividend consisted of approximately $0.6 million in cash and 22,283 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $14.37 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on November 14, 17, 18, 19, 20, 21, 24, 25, 26 and 28, 2014.
  
(37)Based on shareholder elections, the dividend consisted of approximately $2.5 million in cash and 649,500 shares of common stock, or 13.7% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 20.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.439 per share, which equaled the volume weighted average trading price per share of the common stock on December 11, 13 and 16, 2013.


(38)Based on shareholder elections, the dividend consisted of $3.3 million in cash and 853,455 shares of common stock, or 22.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 20.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.444 per share, which equaled the volume weighted average trading price per share of the common stock on December 14, 17 and 19, 2012.
  
(39)Based on shareholder elections, the dividend consisted of $2.0 million in cash and 599,584 shares of common stock, or 18.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 20.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $13.117067 per share, which equaled the volume weighted average trading price per share of the common stock on December 20, 21 and 22, 2011.
  
(40)Based on shareholder elections, the dividend consisted of $1.2 million in cash and 596,235 shares of common stock, or 22.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 10.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.8049 per share, which equaled the volume weighted average trading price per share of the common stock on December 20, 21 and 22, 2010.

 

(41)Based on shareholder elections, the dividend consisted of $2.1 million in cash and 864,872.5 shares of common stock, or 104.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 13.7% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $1.5099 per share, which equaled the volume weighted average trading price per share of the common stock on December 24 and 28, 2009.
  
(42)  

Based on shareholder elections, the dividend consisted of approximately $7.6 million in cash and 29,628 newly issued shares of common stock, or 0.2% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $25.29 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 15, 16, 20, 21, 22, 23, 26, 27, 28, and 29, 2023.

(43)  Based on shareholder elections, the dividend consisted of approximately $8.4 million in cash and 35,197 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $24.41 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on September 15, 18, 19, 20, 21, 22, 25, 26, 27, and 28, 2023.

 

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

 

Our asset coverage ratio, as defined in the 1940 Act, was 155.7%159.7% as of MayAugust 31, 2023 and 165.9% as of February 28, 2023.

 


 

 

Subsequent Events

 

On July 6, 2023, theThe Company increased the maximum amount of shares of its common stock to be soldhas evaluated subsequent events through the ATM Program to $300.0 million from $150.0 million. In connection with the upsizefiling of the ATM Program, the Company entered into amendment no. 2this Form 10-Q and determined that there have been no events that have occurred that would require adjustments to the equity distribution agreement (“Amendment No. 2”), dated July 10, 2023 (as amended from time to time, the “Equity Distribution Agreement”), with the Agents. Under the Equity Distribution Agreement, the Company may but has no obligation to, issueCompany’s consolidated financial statements and sell up to $300.0 million in aggregate amount of its shares of common stockdisclosures in the ATM Program, from time to time throughconsolidated financial statements as of and for the Agents, or to them, as principal for their own account.quarter ended August 31, 2023.

The Agents will receive a commission from the Company up to 1.5% of the gross sales price of any shares of its common stock sold through the Agents under the Equity Distribution Agreement. The sales price per share of the Company’s common stock offered under the ATM Program, less the Agents’ commission, will not be less than the NAV per share of our common stock at the time of such sale. Saratoga Investment Advisors may, from time to time and in its sole discretion, contribute proceeds necessary to ensure that no sales are made at a price below the then-current NAV per share.

Contractual obligations

 

The following table shows our payment obligations for repayment of debt and other contractual obligations at MayAugust 31, 2023:

 

    Payment Due by Period 
    Less Than 1 - 3 3 - 5 More Than     Payment Due by Period 
Long-Term Debt Obligations Total 1 Year Years Years 5 Years  Total  Less Than
1 Year		  1 - 3
Years		  3 - 5
Years		  More Than
5 Years		 
 ($ in thousands)  ($ in thousands) 
Encina credit facility $35,000  $-  $35,000  $-  $-  $35,000  $-  $35,000  $-  $- 
SBA debentures  202,000   -   27,000   -   175,000   189,000   -   -   -   189,000 
8.75% 2024 Notes  20,000   20,000   -   -   -   20,000   20,000   -   -   - 
7.00% 2025 Notes  12,000   -   12,000   -   - 
6.00% 2025 Notes  12,000   -   12,000   -   - 
7.75% 2025 Notes  5,000   -   5,000   -   -   5,000   -   5,000   -   - 
4.375% 2026 Notes  175,000   -   175,000   -   -   175,000   -   175,000   -   - 
4.35% 2027 Notes  75,000   -   -   75,000   -   75,000   -   -   75,000   - 
6.00% 2027 Notes  105,500   -   -   105,500   -   105,500   -   -   105,500   - 
6.25% 2027 Notes  15,000   -   -   15,000   -   15,000   -   -   15,000   - 
8.00% 2027 Notes  46,000   -   -   46,000   -   46,000   -   -   46,000   - 
8.125% 2027 Notes  60,375   -   -   60,375   -   60,375   -   -   60,375   - 
8.50% 2028 Notes  57,500   -   -   57,500   -   57,500   -   -   57,500   - 
Total Long-Term Debt Obligations $808,375  $20,000  $254,000  $359,375  $175,000  $795,375  $20,000  $227,000  $359,375  $189,000 

 

Off-balance sheet arrangements

 

As of MayAugust 31, 2023 and February 28, 2023, the Company’sour off-balance sheet arrangements consisted of $143.0$140.6 million and $108.8 million, respectively, of unfunded commitments outstanding to provide debt financing to its portfolio companies or to fund limited partnership interests. Such commitments are generally up to the Company’sour discretion to approve, or the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’sour consolidated statements of assets and liabilities and are not reflected in the Company’sour consolidated statements of assets and liabilities.

 


 

A summary of the unfunded commitments outstanding as of MayAugust 31, 2023: and February 28, 2023: is shown in the table below (dollars in thousands):

 

 May 31,
2023		  February 28,
2023		  August 31,
2023		  February 28,
2023		 
At Company’s discretion          
ActiveProspect, Inc. $10,000  $10,000  $10,000  $10,000 
Artemis Wax Corp.  23,500   - 
Ascend Software, LLC  5,000   5,000   5,000   5,000 
Granite Comfort, LP  750   15,000   750   15,000 
JDXpert  5,000   5,000   5,000   5,000 
LFR Chicken LLC  4,000   4,000   4,000   4,000 
Pepper Palace, Inc.  3,000   3,000   3,000   3,000 
Procurement Partners, LLC  4,250   4,250   4,250   4,250 
Saratoga Senior Loan Fund I JV, LLC  8,548   8,548   8,548   8,548 
Sceptre Hospitality Resources, LLC  5,000   5,000   5,000   5,000 
Stretch Zone Franchising, LLC  3,750   -   3,750   - 
VetnCare MSO, LLC  10,000   -   10,000   - 
Total $59,298  $59,798  $82,798  $59,798 
                
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required                
Alpha Aesthetics Partners OpCo, LLC $8,600  $-  $4,844  $- 
ARC Health OpCo LLC  5,463   10,773   259   10,773 
Artemis Wax Corp.  8,500   8,500   -   8,500 
Ascend Software, LLC  3,200   3,200   1,500   3,200 
Axero Holdings, LLC - Revolver  500   500   500   500 
BQE Software, Inc.  4,000   -   3,250   - 
C2 Educational Systems  3,000   - 
C2 Educational Systems, Inc.  3,000   - 
Davisware, LLC  1,500   - 
Exigo, LLC  4,167   4,167   4,167   4,167 
Exigo, LLC - Revolver  1,042   833   1,042   833 
Gen4 Dental Partners Holdings, LLC  9,186   11,000   3,367   11,000 
GoReact  1,000   2,500   1,250   2,500 
JDXpert  -   1,000   -   1,000 
Inspect Point Holding, LLC  1,500     
Modis Dental Partners OpCo, LLC  7,500   -   7,500   - 
Pepper Palace, Inc. - Delayed Draw Term Loan  2,000   2,000 
Pepper Palace, Inc.  -   2,000 
Pepper Palace, Inc. - Revolver  2,500   2,500   2,500   2,500 
Procurement Partners, LLC  1,000   1,000   -   1,000 
Stretch Zone Franchising, LLC  1,500   -   1,500   - 
VetnCare MSO, LLC  19,500   -   19,500   - 
Zollege PBC  1,000   1,000   575   1,000 
  83,658   48,973   57,754   48,973 
Total $142,956  $108,771  $140,552  $108,771 

 

The Company believes itsWe believe our assets will provide adequate coverage to satisfy these unfunded commitments. As of MayAugust 31, 2023, the Companywe had cash and cash equivalents and cash and cash equivalents, reserve accounts of $53.2of $48.4 million and $30.0 million in available borrowings under the Encina Credit Facility.

 


 

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

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

 

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

 

Our investment income is affected by fluctuations in various interest rates, including LIBOR, SOFR and the prime rate. Substantially all of our portfolio is, and we expect will continue to be, comprised of floating rate investments that utilize LIBOR. Since March 2022, the Federal Reserve has been rapidly raising interest rates bringing it to the 5.25% to 5.50% range and has indicated that it wouldmay consider an additional rate hikeshike in response to ongoing inflation concerns.2023. In a rising interest rate environment, our cost of funds would increase, which could reduce our net investment income if there is not a corresponding increase in interest income generated by our investment portfolio. It is possible that the Federal Reserve’s tightening cycle could result in a recession in the United States, into a recession, which would likely decrease interest rates. A prolonged reduction in interest rates will reduce our gross investment income and could result in a decrease in our net investment income if such decreases in base rates, such as LIBOR and SOFR, are not offset by corresponding increases in the spread over such base rates that we earn on any portfolio investments, a decrease in in our operating expenses, including with respect to our income incentive fee, or a decrease in the interest rate of our floating interest rate liabilities tied to LIBOR.liabilities. Our interest expense is affected by fluctuations in SOFR on our Encina Credit Facility. In addition, substantially all of our assets have been transitioned from LIBOR transition language to include the use of an acceptable replacement rate, such as SOFR. At MayAugust 31, 2023, we had $773.4$760.4 million of borrowings outstanding. In addition, there were $35.0 million borrowings outstanding under the Encina Credit Facility as of MayAugust 31, 2023.

 

We have analyzed the potential impact of changes in interest rates on interest income from investments. Assuming that our investments as of MayAugust 31, 2023 were to remain constant for a full fiscal year and no actions were taken to alter the existing interest rate terms, a hypothetical change of a 1.0% increase in interest rates would cause a corresponding increase of approximately $9.7$10.0 million to our interest income. Conversely, a hypothetical change of a 1.0% decrease in interest rates would cause a corresponding decrease of approximately $9.7$10.0 million to our interest income.

 

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


 

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


 

For further information, the following table shows the approximate annualized increase or decrease in the components of net investment income due to hypothetical base rate changes in interest rates, assuming no changes in our investments and borrowings as of MayAugust 31, 2023.

 

Basis
Point Change		 Increase
(Decrease)
in Interest
Income		 (Increase)
Decrease
in Interest
Expense		 Increase
(Decrease)
in Net
Interest
Income		 Increase
(Decrease)
in Net
Interest
Income*		 Increase
(Decrease)
in Net
Investment
Income per
Share		  Increase
(Decrease)
in Interest
Income		  (Increase)
Decrease
in Interest
Expense		  Increase
(Decrease)
in Net
Interest
Income		  Increase
(Decrease)
in Net
Interest
Income*		  Increase
(Decrease)
in Net
Investment
Income per
Share		 
 ($ in thousands)      ($ in thousands)      
-100 $(9,737) $350 $(9,387) $(7,510) $(0.63) $(9,994) $350  $(9,644) $(7,715) $(0.64)
-50 (4,869) 175 (4,694) (3,755) (0.32)  (4,997)  175   (4,822)  (3,858)  (0.32)
-25 (2,434) 88 (2,346) (1,877) (0.16)  (2,498)  88   (2,410)  (1,928)  (0.16)
25 2,434 (88) 2,346 1,877 0.16   2,498   (88)  2,410   1,928   0.16 
50 4,869 (175) 4,694 3,755 0.32   4,997   (175)  4,822   3,858   0.32 
100 9,737 (350) 9,387 7,510 0.63   9,994   (350)  9,644   7,715   0.64 
200 19,475 (700) 18,775 15,020 1.27   19,988   (700)  19,288   15,430   1.28 
300 29,212 (1,050) 28,162 22,530 1.90   29,982   (1,050)  28,932   23,146   1.93 
400 38,950 (1,400) 37,550 30,040 2.53   39,975   (1,400)  38,575   30,860   2.57 

 

*Adjusts Net Interest Income for the impact of the first incentive fee on Net Investment Income

 

ITEM 4. CONTROLS AND PROCEDURES

 

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

 

(b)There have been no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) of Exchange Act) that occurred during the quarter ended MayAugust 31, 2023 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 


 

PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings

 

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

 

Item 1A. Risk Factors

 

In addition to information set forth in this report, you should carefully consider the “Risk Factors” discussed in our most recent Annual Report on Form 10-K filed with the SEC, which could materially affect our business, financial condition and/or operating results. ThereExcept for the risk factor set forth below, there have been no material changes during the threesix months ended MayAugust 31, 2023 to the risk factors discussed in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended February 28, 2023. Additional risks or uncertainties not currently known to us or that we currently deem to be immaterial also may materially affect our business, financial condition and/or operating results.

The alternative reference rates that have replaced LIBOR in our credit arrangements and other financial instruments may not yield the same or similar economic results as LIBOR over the life of such transactions.

LIBOR, the London Interbank Offered Rate, is an index rate that historically was widely used in lending transactions and was a common reference rate for setting the floating interest rate on private loans. Prior to June 30, 2023, LIBOR was typically the reference rate used in floating-rate loans identified by the Manager.

The ICE Benchmark Administration (“IBA”) (the entity that is responsible for calculating LIBOR) ceased providing overnight, one, three, six and twelve months USD LIBOR tenors on June 30, 2023. In addition, the United Kingdom’s Financial Conduct Authority (“FCA”), which oversees the IBA, now prohibits entities supervised by the FCA from using LIBORs, including USD LIBOR, except in very limited circumstances.


In the United States, the Secured Overnight Financing Rate (“SOFR”) is the preferred alternative rate for LIBOR. SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions. SOFR is published by the Federal Reserve Bank of New York each U.S. Government Securities Business Day, for transactions made on the immediately preceding US. Government Securities Business Day. Alternative reference rates that may replace LIBOR, including SOFR for USD transactions, may not yield the same or similar economic results as LIBOR over the lives of such transactions.

Substantially all of our loans that referenced LIBOR have been amended to reference the forward-looking term rate published by CME Group Benchmark Administration Limited based on the secured overnight financing rate (“CME Term SOFR”). CME Term SOFR rates are forward-looking rates that are derived by compounding projected overnight SOFR rates over one, three, and six months taking into account the values of multiple consecutive, executed, one-month and three-month CME Group traded SOFR futures contracts and, in some cases, over-the-counter SOFR Overnight Indexed Swaps as an indicator of CME Term SOFR reference rate values. CME Term SOFR and the inputs on which it is based are derived from SOFR. Since CME Term SOFR is a relatively new market rate, there will likely be no established trading market for credit agreements or other financial instruments when they are issued, and an established market may never develop or may not be liquid. Market terms for instruments referencing CME Term SOFR rates may be lower than those of later-issued CME Term SOFR indexed instruments. Similarly, if CME Term SOFR does not prove to be widely used, the trading price of instruments referencing CME Term SOFR may be lower than those of instruments indexed to indices that are more widely used.

  

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

 

Not applicable.

 

Item 3. Defaults Upon Senior Securities

 

Not applicable.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

  

(a)None.
(b)None.
(c)For the period covered by this Quarterly Report on Form 10-Q, no director or officer of the Company has entered into any (i) contract, instruction or written plan for the purchase or sale of securities of the Company intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or (ii) any non-Rule 10b5-1 trading arrangement.

None.

The Company has adopted insider trading policies and procedures governing the purchase, sale, and disposition of the Company’s securities by officers and directors of the Company that are reasonably designed to promote compliance with insider trading laws, rules and regulations.


 

ITEM 6. EXHIBITS

 

The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the SEC:

  


EXHIBIT INDEX

 

Exhibit
Number		 Description
   
3.1(a) Articles of Incorporation of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended May 31,filed on July 13, 2007).
   
3.1(b) Articles of Amendment of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).
   
3.1(c) Articles of Amendment of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 13, 2010).
   
3.2 Third Amended and Restated Bylaws of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s CurrentQuarterly Report on Form 10-Q filed January 6, 2021).
   
4.1 Specimen certificate of Saratoga Investment Corp.’s common stock, par value $0.001 per share.share (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-169135, filed on September 1, 2010).
   
4.2 Registration Rights Agreement dated July 30, 2010 between GSC Investment Corp., GSC CDO III L.L.C., and the investors party thereto (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).
   
4.3 Dividend Reinvestment Plan (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on September 24, 2014).
   
4.4 Form of Indenture by and between the Company and U.S. Bank National Association, as trustee (incorporated by reference to Saratoga Investment Corp.’s Pre-Effective Amendment No. 2 to the Registration Statement on Form N-2, File No. 333-186323 filed on April 30, 2013).
   
4.5 Form of Articles Supplementary Establishing and Fixing the Rights and Preferences of Preferred Stock (incorporated by reference to Saratoga Investment Corp.’s registration statement on Form N-2 Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2, File No. 333-196526, filed on December 5, 2014).
   
4.6 Fifth Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank National Association, as trustee, relating to 7.75% Notes due 2025 (incorporated by reference to Saratoga Investment Corp.’s Quarterly Reporton Form 10-Q, filed on January 10, 2023).


4.7 Seventh Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank National Association, as trustee, relating to 6.25% Notes due 2027 (incorporated by reference to Saratoga Investment Corp.’s Quarterly Report on Form 10-Q, filed on January 10, 2023).
   
4.8 Eighth Supplemental Indenture between the Saratoga Investment Corp. and U.S. Bank National Association, as trustee, relating to the 4.375% Note due 2026 (incorporated by reference to Exhibit 4.2 to the Registrant’sSaratoga Investment Corp.’s Current Report on Form 8-K (File No. 814-00732) filed on March 10, 2021).
   
4.9 Ninth Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank National Association, as trustee, relating to the 4.375% Note due 2027 (incorporated by reference to the Registrant’sSaratoga Investment Corp.’s Current Report on Form 8-K (File No. 814-00732) filed on January 19, 2022).
   
4.10 Tenth Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank National Association, as trustee, relating to the 6.00% Note due 2027 (incorporated by reference to the Registrant’sSaratoga Investment Corp.’s Current Report on Form 8-K (File No. 814-00732) filed on April 27, 2022).
   
4.11 Eleventh Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee, relating to the 7.00% Notes due 2025 (incorporated by reference to the Registrant’sSaratoga Investment Corp.’s Quarterly Report on Form 10-Q, filed on January 10, 2023).
   
4.12 Twelfth Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank Trust Company, National Association, as trustee, relating to the 8.00% Notes due 2027 (incorporated by reference to the Saratoga Investment Corp.’s Current Report on Form 8-K (File No. 813-00732) filed on October 27, 2022).
   
4.13 Thirteenth Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee, relating to the 8.125% Notes due 2027 (incorporated by reference to the Registrant’s Current Report on Form 8-K, filed on December 13, 2022).
   
4.15 Fifteenth Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee, relating to the 8.50% Notes due 2028 (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on April 14, 2023).
4.16Form of 7.75% Notes due 2025 (incorporated by reference to Exhibit 4.6 hereto).
4.17Form of 6.25% Notes due 2027 (incorporated by reference to Exhibit 4.7 hereto).
4.18Form of 4.375% Notes due 2026 (incorporated by reference to Exhibit 4.8 hereto).

 


 

 

4.16Form of 7.75% Notes due 2025 (incorporated by reference to Exhibit 4.6 hereto).
4.17Form of 6.25% Notes due 2027 (incorporated by reference to Exhibit 4.7 hereto).
4.18Form of 4.375% Notes due 2026 (incorporated by reference to Exhibit 4.8 hereto).
4.19 Form of 4.375% Notes due 2027 (incorporated by reference to Exhibit 4.9 hereto).
   
4.20 Form of 6.00% Notes due 2027 (incorporated by reference to Exhibit 4.10 hereto).
   
4.21 Form of 7.00% Notes due 2027 (incorporated by reference to Exhibit 4.11 hereto).
   
4.22 Form of 8.00% Notes due 2027 (incorporated by reference to Exhibit 4.12 hereto).
   
4.23 Form of 8.125% Notes due 2027 (incorporated by reference to Exhibit 4.13 hereto).
   
4.25 Form of 8.50% Notes due 2028 (incorporated by reference to Exhibit 4.15 hereto).
   
10.1 Investment Advisory and Management Agreement dated July 30, 2010 between GSC Investment Corp. and Saratoga Investment Advisors, LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).
   
10.2 Custodian Agreement dated March 21, 2007 between GSC Investment LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended May 31,filed on July 13, 2007).
   
10.3 Administration Agreement dated July 30, 2010 between GSC Investment Corp. and Saratoga Investment Advisors, LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).
   
10.4 Trademark License Agreement dated July 30, 2010 between Saratoga Investment Advisors, LLC and GSC Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).
   
10.5 Form of Indemnification Agreement between Saratoga Investment Corp. and each officer and director of Saratoga Investment Corp. (incorporated by reference to Amendment No. 2 to Saratoga Investment Corp.’s Registration Statement on Form N-2 filed on January 12, 2007).
   
10.6 Amended and Restated Indenture, dated as of November 15, 2016, among Saratoga Investment Corp. CLO 2013-1, Ltd., Saratoga Investment Corp. CLO 2013-1, Inc. and U.S. Bank National Association. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-216344, filed on February 28, 2017).
   
10.7 Amended and Restated Collateral Management Agreement, dated February 26, 2021, by and between Saratoga Investment Corp. and Saratoga Investment Corp. CLO 2013-1, Ltd. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on March 4, 2021).
   
10.8 Amended and Restated Collateral Administration Agreement, dated February 26, 2021, by and between Saratoga Investment Corp., Saratoga Investment Corp. CLO 2013-1, Ltd. and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on March 4, 2021).

   
10.9 Equity Distribution Agreement, dated July 30, 2021, by and among Saratoga Investment Corp. and Saratoga Investment Advisors, LLC, on the one hand, and Ladenburg Thalmann & Co. Inc. and Compass Point Research & Trading, LLC, on the other hand (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 2, 2021).
   
10.10 Amendment No. 2 to the Equity Distribution Agreement, dated July 30, 2021, by and among Saratoga Investment Corp. and Saratoga Investment Advisors, LLC, on the one hand, and Ladenburg Thalmann & Co. Inc. and Compass Point Research & Trading, LLC, on the other hand (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on July 10, 2023).


10.11Amendment No. 3 to the Equity Distribution Agreement, dated July 30, 2021, by and among Saratoga Investment Corp. and Saratoga Investment Advisors, LLC, on the one hand, and Ladenburg Thalmann & Co. Inc., Compass Point Research and Trading, LLC, and Raymond James & Associates, Inc. on the other hand (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on July 19, 2023).
10.12Credit and Security Agreement, dated as of October 4, 2021, by and among Saratoga Investment Funding II, LLC, Saratoga Investment Corp., as collateral manager and equityholder, the lenders party thereto, Encina Lender Finance, LLC, as administrative agent for the secured parties and the collateral agent, and U.S. Bank National Association, as collateral custodian for the secured parties thereto and as collateral administrator (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 7, 2021).
   
10.1110.13 First Amendment to the Credit and Security Agreement, dated as of January 27, 2023, by and among Saratoga Investment Fund II LLC, as borrower, Saratoga Investment Corp., as equityholder and as collateral manager, the lenders party thereto, Encina Lender Finance, LLC, as administrative agent and as collateral agent, U.S. Bank National Association, as custodian, and U.S. Bank Trust Company, National Association (successor in interest to U.S. Bank National Association), as collateral administrator (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K, filed on February 2, 2023).


10.1210.14Equity Pledge Agreement, dated as of October 4, 2021, by and between Saratoga Investment Corp. and Encina Lender Finance, LLC, as collateral agent for the secured parties thereto (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 7, 2021).
10.15
10.13Loan Sale and Contribution Agreement, dated as of October 4, 2021, by and between Saratoga Investment Corp., as seller, and Saratoga Investment Funding II LLC, as purchaser (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 7, 2021).
10.16
10.14Saratoga Senior Loan Fund I JV LLC Limited Liability Company Agreement, dated October 26, 2021, by and between Saratoga Investment Corp. and TJHA JV I LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 27, 2021).
10.1510.17Note Purchase Agreement by and between Saratoga Investment Corp. and the purchaser party thereto, dated July 9, 2020 (incorporated by reference to Saratoga Investment Corp.’s Quarterly Report on Form 10-Q filed on October 4, 2022).
10.18
10.16 

First Supplemental Note Purchase Agreement by and between Saratoga Investment Corp. and the purchaser party thereto, dated January 28, 2021 (incorporated by reference to Saratoga Investment Corp.’s Quarterly Report on Form 10-Q filed on October 4, 2022).

   
10.1710.19 

Second Supplemental Note Purchase Agreement by and between Saratoga Investment Corp. and the purchaser party thereto, dated September 8, 2022 (incorporated by reference to Saratoga Investment Corp.’s Quarterly Report on Form 10-Q filed on October 4, 2022).

   
14Code of Ethics of the Company adopted under Rule 17j-1 (incorporated by reference to Amendment No.7 to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-138051, filed on March 22, 2007).
31.1*Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
31.2*Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
32.1*Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C.1350)
32.2*Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)
101.INSInline XBRL Instance Document.
101.SCHInline XBRL Taxonomy Extension Schema Document.
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document.
101.LABInline XBRL Taxonomy Extension Label Linkbase Document.
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document.
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

 

*Filed herewith

  


 

SIGNATURES

 

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

 

 SARATOGA INVESTMENT CORP.
   
Date: JulyOctober 10, 2023By:/s/ CHRISTIAN L. OBERBECK
  Christian L. Oberbeck
  Chief Executive Officer
   
 By:/s/ HENRI J. STEENKAMP
  Henri J. Steenkamp
  Chief Financial Officer and
Chief Compliance Officer

 


 

141

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