UNITED STATES

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended June 30, 2023March 31, 2024

OR

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

Commission File Number: 814-01351

STEELE CREEK CAPITAL CORPORATION

Maryland85-1327288
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)
210 S. College Street, Suite 1690, Charlotte,
North Carolina		28244
(Address of principal executive offices)(Zip Code)

(704) 343-6011

(Registrant’s telephone number, including area code)

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

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

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

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

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

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

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

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

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

As of August 11, 2023,May 10, 2024, the registrant had 5,741,0886,354,912 shares of common stock, $0.001 par value per share, outstanding.

 

 

 

STEELE CREEK CAPITAL CORPORATION

TABLE OF CONTENTS

 Page
PART I. FINANCIAL INFORMATION1
 
Item 1.Consolidated Financial Statements1
 
 Consolidated Statements of Assets and Liabilities as of June 30, 2023March 31, 2024 (unaudited) and December 31, 202220231
 1
 Consolidated Statements of Operations for the three and six months ended June 30,March 31, 2024 and 2023 and 2022 (unaudited)2
 
 Consolidated Statements of Changes in Net Assets for the three and six months ended June 30,March 31, 2024 and 2023 and 2022 (unaudited)3
 
 Consolidated Statements of Cash Flows for the sixthree months ended June 30,March 31, 2024 and 2023 and 2022 (unaudited)4
 
 Consolidated Schedules of Investments as of June 30, 2023March 31, 2024 (unaudited) and December 31, 202220235
 
 Notes to Consolidated Financial Statements (unaudited)2528
 
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations3841
 
Item 3.Quantitative and Qualitative Disclosures About Market Risk5457
 
Item 4.Controls and Procedures5458
 
PART II. OTHER INFORMATION5559
 
Item 1.Legal Proceedings5559
 
Item 1A.Risk Factors5559
 
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds5559
 
Item 3.Defaults Upon Senior Securities5559
 
Item 4.Mine Safety Disclosures5559
 
Item 5.Other Information5559
 
Item 6.Exhibits5660
 
Signatures 57
Signatures61

i

 

Part I. Financial Information

Item 1. Consolidated Financial Statements

Steele Creek Capital Corporation

Consolidated Statements of Assets and Liabilities

(in thousands, except per share data)

 

 June 30,
2023		  December 31,
2022		  March 31,
2024		  December 31,
2023		 
 (unaudited)     (unaudited)    
Assets          
Investments:          
Non-controlled/non-affiliated company investments, at fair value (amortized cost of $135,284 and $137,084, respectively) $129,281  $127,619 
Non-controlled/non-affiliated company investments, at fair value (amortized cost of $145,405 and $142,333, respectively) $140,676  $138,533 
Cash  6,525   4,693   10,552   9,325 
Receivable for investments sold  16,852   18,277   30,772   32,451 
Prepaid expenses and other assets  164   218   294   339 
Interest receivable  634   363   693   744 
Total assets $153,456  $151,170  $182,987  $181,392 
                
Liabilities                
Credit facility  78,450   83,150   83,136   86,316 
Payable for investments purchased  19,516   15,253   36,534   30,188 
Management fees payable  -   319   349   344 
Interest payable  15   28   47   50 
Incentive fees payable  -   24   56   80 
Accounts payable and accrued expenses  650   664   513   475 
Distributions payable  1,059   1,357   1,233   2,081 
Total liabilities  99,690   100,795   121,868   119,534 
                
Commitments and contingencies (Note 8)                
                
Net Assets:                
Common shares, $0.001 par value, 5,720,234 shares authorized, 5,720,234 and 5,643,073 shares issued and outstanding, respectively $6  $6 
Common shares, $0.001 par value, 6,390,590 shares authorized and 6,390,590 and 6,370,722 shares issued and outstanding, respectively $6  $6 
Paid-in-capital in excess of par value  62,123   60,372   67,609   67,420 
Total distributable (deficit)  (8,363)  (10,003)  (6,496)  (5,568)
Total net assets $53,766  $50,375  $61,119  $61,858 
                
Total liabilities and net assets $153,456  $151,170  $182,987  $181,392 
                
Net asset value per share $9.40  $8.93  $9.56  $9.71 

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


1

 

Steele Creek Capital Corporation

Consolidated StatementStatements of Operations

(unaudited)

(in thousands, except per share data)

  Three months
ended
June 30,
2023		  Six months
ended
June 30,
2023		  Three months
ended
June 30,
2022		  Six months
ended
June 30,
2022		 
             
Investment income:            
Non-controlled/non-affiliated company investments:            
Interest income $3,255  $6,472  $1,805  $3,276 
Total investment income  3,255   6,472   1,805   3,276 
                 
Expenses:                
Management fees  375   747   414   845 
Interest and debt financing expenses  1,334   2,636   499   844 
Professional fees  95   190   79   157 
Incentive fees  -   76   -   (110)
Administration expenses  57   115   55   103 
Directors’ fees  20   40   20   40 
Custody fees  11   23   8   15 
Other general and administrative expenses  191   310   245   414 
Total expenses  2,083   4,137   1,320   2,308 
Less: management fees waived  (375)  (427)  (271)  (481)
Less: incentive fees waived  -   (8)  -   - 
Net expenses  1,708   3,702   1,049   1,827 
Net investment income  1,547   2,770   756   1,449 
                 
Realized and unrealized (loss) gain on investments:                
Net realized (loss) gain on non-controlled/non-affiliated company investments  (1,001)  (1,419)  59   166 
Net change in unrealized (depreciation) appreciation on non-controlled/non-affiliated company investments  1,795   3,461   (7,430)  (8,696)
                 
Total net realized and unrealized (loss) gain on investments  794   2,042   (7,371)  (8,530)
                 
Net (decrease) increase in net assets resulting from operations $2,341  $4,812  $(6,615) $(7,081)
                 
Per share data:                
Net investment income per share - basic and diluted $0.27  $0.49  $0.15  $0.29 
Net (decrease) increase in net assets resulting from operations per share - basic and diluted $0.41  $0.85  $(1.28) $(1.42)
Weighted average shares outstanding - basic and diluted  5,673   5,683   5,157   4,980 

  Three months
ended
March 31,
2024		  Three months
ended
March 31,
2023		 
       
Investment income:      
Non-controlled/non-affiliated company investments:      
Interest income $3,449  $3,199 
Payment in-kind interest income  4   18
Other income  8   - 
Total investment income  3,461   3,217 
         
Expenses:        
Management fees  455   372 
Interest and debt financing expenses  1,485   1,302 
Professional fees  99   95 
Incentive fees  56   76 
Administration expenses  60   58 
Directors’ fees  20   20 
Custody fees  12   12 
Other general and administrative expenses  159   119 
Total expenses  2,346   2,054 
Less: management fees waived  (106)  (52)
Less: incentive fees waived  -   (8)
Net expenses  2,240   1,994 
Net investment income  1,221   1,223 
         
Realized and unrealized (loss) gain on investments:        
Net realized (loss) gain on non-controlled/non-affiliated company investments  13   (418)
Net change in unrealized (depreciation) appreciation on non-controlled/non-affiliated company investments  (929)  1,666 
         
Total net realized and unrealized (loss) gain on investments  (916)  1,248 
         
Net (decrease) increase in net assets resulting from operations $305  $2,471 
         
Per share data:        
Net investment income per share - basic and diluted $0.19  $0.21 
Net (decrease) increase in net assets resulting from operations per share - basic and diluted $0.05  $0.43 
Weighted average shares outstanding - basic and diluted  6,344   5,692 

 

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


2

 

Steele Creek Capital Corporation

Consolidated Statements of Changes in Net Assets

(unaudited)

(in thousands, except per share data)

  Three months
ended
June 30,
2023		  Six months
ended
June 30,
2023		  Three months
ended
June 30,
2022		  Six months
ended
June 30,
2022		 
Operations            
Net investment income $1,547  $2,770  $756  $1,449 
Net realized (loss) gain on investments  (1,001)  (1,419)  59   166 
Net change in unrealized  appreciation (depreciation) on investments  1,795   3,461   (7,430)  (8,696)
Net increase (decrease) in net assets resulting from operations  2,341   4,812   (6,615)  (7,081)
                 
Distributions to Stockholders                
Distributions of realized income  (1,059)  (2,126)  (815)  (1,615)
                 
Capital Share Transactions                
Issuance of common shares  1,136   1,751   3,182   10,290 
Repurchase of common shares  (1,046)  (1,046)  -   - 
Total Capital Share Transactions  90   705   3,182   10,290 
                 
Net Assets                
Net increase (decrease) in net assets during the period  1,372   3,391   (4,248)  1,594 
Net assets at beginning of period  52,394   50,375   52,835   46,993 
Net assets at end of period  53,766   53,766   48,587   48,587 
                 
Capital Share Activity                
Issuance of common shares  10   77   311   964 
Shares issued and outstanding at beginning of period  5,710   5,643   4,964   4,311 
Shares issued and outstanding at end of period  5,720   5,720   5,275   5,275 

  Three months
ended
March 31,
2024		  Three months
ended
March 31,
2023		 
Operations      
Net investment income $1,221  $1,223 
Net realized (loss) gain on investments  13   (418)
Net change in unrealized appreciation (depreciation) on investments  (929)  1,666 
Net increase (decrease) in net assets resulting from operations  305   2,471 
         
Distributions to Stockholders        
Distributions of realized income  (1,233)  (1,067)
         
Capital Share Transactions        
Issuance of common shares  713   615 
Repurchase of common shares  (524)  - 
Total Capital Share Transactions  189   615 
         
Net Assets        
Net increase (decrease) in net assets during the period  (739)  2,019 
Net assets at beginning of period  61,858   50,375 
Net assets at end of period  61,119   52,394 
         
Capital Share Activity        
Issuance of common shares  74   67 
Repurchase of common shares  (54)  - 
Shares issued and outstanding at beginning of period  6,371   5,643 
Shares issued and outstanding at end of period  6,391   5,710 

 

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


3

 

Steele Creek Capital Corporation

Consolidated StatementStatements of Cash Flows

(unaudited)

(in thousands, except per share data)

  Three months
ended
March 31,
2024		  Three months
ended
March 31,
2023		 
Cash flows from operating activities:      
Net increase (decrease) in net assets resulting from operations $305  $2,471 
         
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities        
Purchase of investments (1)  (92,086)  (49,931)
Proceeds from sales of investments and paydowns (1)  89,108   50,480 
Payment in-kind interest income  (4)  (18)
Amortization of premium/accretion of discount, net  (77)  (119)
Net realized loss (gain) on investments  (13)  418 
Net change in unrealized depreciation (appreciation) on investments  929   (1,666)
Changes in operating assets and liabilities:        
Receivable for investments sold  1,679   7,801 
Prepaid expenses and other assets  45   58 
Interest receivable  51   (298)
Payable for investments purchased  6,346   (5,237)
Management fees payable  5   1 
Interest payable  (3)  (13)
Incentive fees payable  (24)  43 
Accounts payable and accrued expenses  38   (90)
Net cash provided by (used in) operating activities  6,299   3,900 
         
Cash flows from financing activities:        
Proceeds from issuance of common shares  713   615 
Repurchase of common shares  (524)  - 
Proceeds from issuance of debt  1,820   750 
Repayments on debt  (5,000)  (2,000)
Stockholder distributions paid  (2,081)  (1,357)
Net cash (used in) provided by financing activities  (5,072)  (1,992)
         
Net increase in Cash  1,227   1,908 
Cash, beginning of period  9,325   4,693 
Cash, end of period $10,552  $6,601 
         
Supplemental disclosure of Cash Flow Information:        
Operating Activities:        
Interest paid $1,488  $1,316 

 

  Six months
ended
June 30,
2023		  Six months
ended
June 30,
2022		 
Cash flows from operating activities:      
Net increase (decrease) in net assets resulting from operations $4,812  $(7,081)
         
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities        
Purchase of investments  (87,282)  (119,872)
Proceeds from sales of investments and paydowns  88,088   86,862 
Payment in-kind interest income  (218)  - 
Amortization of premium/accretion of discount, net  (208)  (104)
Net realized loss (gain) on investments  1,419   (166)
Net change in unrealized (appreciation) depreciation on investments  (3,461)  8,696 
Changes in operating assets and liabilities:        
Receivable for investments sold  1,425   45,215 
Prepaid expenses and other assets  54   (284)
Interest receivable  (271)  47 
Payable for investments purchased  4,263   (30,707)
Management fees payable  (319)  (126)
Interest payable  (13)  (2)
Incentive fees payable  (24)  (309)
Accounts payable and accrued expenses  (14)  217 
Directors’ fees payable  -   (17)
Net cash provided by (used in) operating activities  8,251   (17,631)
         
Cash flows from financing activities:        
Proceeds from issuance of common shares  1,751   10,290 
Repurchase of common shares  (1,046)  - 
Proceeds from issuance of debt  1,400   19,800 
Repayments on debt  (6,100)  (3,880)
Stockholder distributions paid  (2,424)  (1,907)
Net cash (used in) provided by financing activities  (6,419)  24,303 
         
Net increase in Cash  1,832   6,672 
Cash, beginning of period  4,693   8,449 
Cash, end of period $6,525  $15,121 
         
Supplemental disclosure of Cash Flow Information:        
Operating Activities:        
Interest paid $2,649  $846 
(1)Of the amount reported for the three months ended March 31, 2024, $710 thousand, represent non-cash transactions. Of the amount reported for the three months ended March 31, 2023, there are no non-cash transactions.

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

4

Steele Creek Capital Corporation

Consolidated Schedule of Investments

March 31, 2024

(unaudited)

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate(2)		  Basis Point
Spread Above
Index(2)		 Interest Rate
Floor / Base
Rate(2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Non-controlled/Non-Affiliated Investments -230.2% of Shareholder’s Equity (4)                        
Investments made in the United States                        
Aerospace & Defense                        
Amentum Government Services Holdings LLC First Lien - Term Loan 2/15/2029  9.33% S + 4.00%  5.33%  851  $848  $854   1.4%
Barnes Group Inc. (5) First Lien - Term Loan 9/3/2030  7.83% S + 2.50%  5.33%  995   995   998   1.6%
HDT Holdco, Inc. First Lien - Term Loan 7/8/2027  11.32% S + 6.01%  5.31%  502   492   303   0.5%
KBR, Inc. (5) First Lien – Term Loan 1/17/2031  7.58% S + 2.25%  5.33%  211   211   212   0.4%
LSF11 Trinity Bidco, Inc. First Lien – Term Loan 6/14/2030  9.33% S + 4.00%  5.33%  489   482   492   0.8%
MAG DS Corp. First Lien – Term Loan 4/1/2027  10.90% S + 5.60%  5.30%  913   887   877   1.4%
Peraton Corp. First Lien – Term Loan 2/1/2028  9.18% S + 3.85%  5.33%  949   947   950   1.6%
Vertex Aerospace Services Corp. First Lien – Term Loan 12/6/2028  8.68% S + 3.35%  5.33%  980   977   983   1.6%
Total Aerospace & Defense                    5,839   5,669   9.3%
                               
Automotive                              
Adient US LLC First Lien – Term Loan 1/31/2031  8.08% S + 2.75%  5.33%  95   95   95   0.1%
Autokiniton US Holdings, Inc. First Lien – Term Loan 4/6/2028  9.44% S + 4.11%  5.33%  965   960   969   1.6%
First Brands Group, LLC First Lien – Term Loan 3/30/2027  10.57% S + 5.26%  5.31%  315   313   316   0.5%
First Brands Group, LLC First Lien – Term Loan 3/30/2027  10.57% S + 5.26%  5.31%  762   762   765   1.3%
Holley Inc. (5) First Lien – Term Loan 11/17/2028  9.19% S + 3.86%  5.33%  901   902   893   1.5%
Phinia Inc. (5) First Lien – Term Loan 7/3/2028  12.60% S + 4.10%  8.50%  498   480   498   0.8%
Thor Industries, Inc. (5) First Lien – Term Loan 11/15/2030  8.08% S + 2.75%  5.33%  750   747   753   1.2%
Total Automotive                    4,259   4,289   7.0%
                               
Banking, Finance, Insurance & Real Estate                              
AmWINS Group, Inc. First Lien – Term Loan 2/19/2028  8.18% S + 2.85%  5.33%  494   490   495   0.8%
AssuredPartners, Inc. First Lien – Term Loan 2/12/2027  8.83% S + 3.50%  5.33%  980   979   982   1.6%
Baldwin Risk Partners, LLC First Lien – Term Loan 10/14/2027  8.94% S + 3.61%  5.33%  744   739   745   1.2%
Citadel Securities LP First Lien – Term Loan 7/29/2030  7.58% S + 2.25%  5.33%  1,444   1,434   1,445   2.4%
Cushman & Wakefield U.S. Borrower, LLC (5) First Lien – Term Loan 1/31/2030  8.68% S + 3.35%  5.33%  496   488   495   0.8%
DRW Holdings, LLC First Lien – Term Loan 3/1/2028  9.19% S + 3.86%  5.33%  526   524   526   0.9%

 


5

Steele Creek Capital Corporation

Consolidated Schedule of Investments

June 30, 2023

(unaudited)

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest
Rate (2)		  Basis Point
Spread
Above
Index (2)		  Interest Rate
Floor / Base
Rate (2)		  Principal /
Shares		  Amortized
Cost		  Fair Value  % of Net
Assets (4)		 
Non-controlled/Non-Affiliate Investments -240.6% of Shareholder’s Equity (3)                         
Investments made in United States Companies                         
Aerospace & Defense                         
Amentum Government Services Holdings LLC First Lien - Term Loan 2/15/2029  9.15%  S + 4.00%   5.15%  858   $854  $ 840   1.6%
HDT Holdco, Inc. First Lien - Term Loan 7/8/2027  11.29%  L + 5.75%   5.54%  512   501   304   0.6%
LSF11 Trinity Bidco, Inc. First Lien - Term Loan 6/14/2030  9.65%  S + 4.50%   5.15%  500   493   499   0.9%
MAG DS Corp. First Lien - Term Loan 4/1/2027  10.84%  S + 5.50%   5.34%  921   890   869   1.6%
Peraton Corp. First Lien - Term Loan 2/1/2028  8.95%  S + 3.85%   5.10%  960   957   945   1.8%
Propulsion (BC) Midco SARL First Lien - Term Loan 9/14/2029  8.99%  S + 3.75%   5.24%  995   992   996   1.9%
Vertex Aerospace Services Corp. First Lien - Term Loan 12/6/2028  8.95%  S + 3.85%   5.10%  988   984   989   1.8%
Total Aerospace & Defense                      5,671   5,442   10.2%
                                 
Automotive                                
Autokiniton US Holdings, Inc. First Lien - Term Loan 4/6/2028  9.72%  S + 4.61%   5.10%  1,472   1,466   1,466   2.7%
First Brands Group, LLC First Lien - Term Loan 3/30/2027  10.25%  S + 5.43%   4.82%  249   242   244   0.5%
First Brands Group, LLC First Lien - Term Loan 3/30/2027  10.25%  S + 5.00%   5.25%  982   982   964   1.8%
Holley Inc. First Lien - Term Loan 11/17/2028  9.25%  S + 3.75%   5.50%  924   925   795   1.5%
Phinia Inc. First Lien - Term Loan 6/8/2028  9.21%  S + 4.10%   5.11%  500   480   500   0.9%
Total Automotive                      4,095   3,969   7.4%
                                 
Banking, Finance, Insurance & Real Estate                                
AmWINS Group, Inc. First Lien - Term Loan 2/22/2028  7.95%  S + 2.85%   5.10%  498   493   497   0.9%
AssuredPartners, Inc. First Lien - Term Loan 2/12/2027  8.60%  S + 3.50%   5.10%  988   986   980   1.8%
Baldwin Risk Partners, LLC First Lien - Term Loan 10/14/2027  8.65%  L + 3.50%   5.15%  1,091   1,081   1,075   2.0%
Blackstone Mortgage Trust, Inc. First Lien - Term Loan 5/9/2029  8.60%  S + 3.50%   5.10%  845   834   778   1.4%
Citadel Securities LP First Lien - Term Loan 2/2/2028  7.72%  S + 2.61%   5.10%  1,234   1,199   1,234   2.3%
Cushman & Wakefield U.S. Borrower, LLC First Lien - Term Loan 1/31/2030  8.45%  S + 3.35%   5.10%  500   491   486   0.9%
DRW Holdings, LLC First Lien - Term Loan 3/1/2028  8.94%  L + 3.75%   5.19%  531   529   528   1.0%


 

 

Steele Creek Capital Corporation

Consolidated Schedule of Investments

June 30, 2023March 31, 2024

(unaudited)

(in thousands, except per share data)

 

Description (1) Investment Type Maturity Interest
Rate (2)		 Basis Point
Spread
Above
Index (2)		 Interest Rate
Floor / Base
Rate (2)		 Principal /
Shares		 Amortized
Cost		 Fair Value % of Net
Assets (4)		  Investment
Type		 Maturity  Interest
Rate(2)		  Basis Point
Spread Above
Index(2)		  Interest Rate
Floor / Base
Rate(2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
FinCo I LLC First Lien - Term Loan 6/27/2025  8.08%  L + 2.50%   5.58%  368   369   369   0.7% First Lien – Term Loan  6/27/2029   8.31%  S + 3.00%   5.31%  744   741   747   1.2%
Greystar Real Estate Partners, LLC (5) First Lien – Term Loan  8/21/2030   8.58%  S + 3.25%   5.33%  525   518   527   0.9%
Guggenheim Partners Investment Management Holdings, LLC First Lien - Term Loan 12/12/2029  8.49%  S + 3.25%   5.24%  113   112   113   0.2% First Lien – Term Loan  12/12/2029   8.55%  S + 3.25%   5.30%  113   111   113   0.2%
IMA Financial Group, Inc. First Lien - Term Loan 11/1/2028  8.69%  L + 3.50%   5.19%  493   487   488   0.9%
Jane Street Group, LLC First Lien - Term Loan 1/26/2028  7.97%  S + 2.86%   5.10%  980   973   979   1.8% First Lien – Term Loan  1/26/2028   7.94%  S + 2.61%   5.33%  972   968   974   1.6%
KREF Holdings X LLC First Lien - Term Loan 9/1/2027  8.75%  S + 3.50%   5.25%  493   493   479   0.9%
Lakeview Loan Servicing, LLC (5) First Lien – Term Loan  6/21/2029   8.74%  S + 3.36%   5.38%  998   993   993   1.6%
LendingTree, Inc.(5) First Lien - Term Loan 9/15/2028  8.95%  L + 3.75%   5.20%  1,485   1,472   1,157   2.2% First Lien – Term Loan  9/15/2028   9.19%  S + 3.86%   5.33%  1,478   1,477   1,400   2.3%
Newport Parent, Inc. First Lien - Term Loan 12/10/2027  11.72%  S + 6.50%   5.22%  816   793   813   1.5%
OFSBS 2022-11A (5) Collateralized Loan Obligation  10/18/2035   8.83%  S + 3.50%   5.33%  1,000   1,000   1,010   1.7%
OFSI BSL CLO XII, Ltd. Collateralized Loan Obligation 1/20/2035  13.80%  S + 8.85%   4.95%  1,000   982   990   1.8% Collateralized Loan Obligation  1/20/2035   14.17%  S + 8.85%   5.32%  1,000   983   1,019   1.7%
ONBE, Inc. First Lien – Term Loan  12/10/2027   11.94%  S + 6.61%   5.33%  800   780   804   1.3%
Osaic Holdings, Inc. (5) First Lien – Term Loan  8/17/2028   9.83%  S + 4.50%   5.33%  467   463   469   0.8%
Osaic Holdings, Inc. (5) First Lien – Term Loan  8/17/2028   9.32%  S + 4.00%   5.32%  211   210   212   0.3%
Paysafe Group Holdings II Limited First Lien - Term Loan 6/28/2028  7.97%  S + 2.86%   5.10%  985   958   959   1.8% First Lien – Term Loan  6/28/2028   8.19%  S + 2.86%   5.33%  976   953   971   1.6%
Resolute Investment Managers, Inc. First Lien - Term Loan 4/30/2024  9.79%  L + 4.25%   5.54%  695   694   513   1.0% First Lien – Term Loan  4/30/2027   12.07%  S + 6.76%   5.31%  453   453   448   0.7%
Resolute Investment Managers, Inc. (4) Equity  —   —   —   —   6   —   —   0.0%
Russell Investments US Institutional Holdco, Inc. First Lien - Term Loan 5/30/2025  8.70%  S + 3.60%   5.10%  1,558   1,546   1,457   2.7% First Lien – Term Loan  5/30/2025   8.93%  S + 3.60%   5.33%  1,558   1,551   1,497   2.5%
Ryan Specialty Group, LLC First Lien - Term Loan 9/1/2027  8.20%  S + 3.10%   5.10%  489   490   489   0.9% First Lien – Term Loan  9/1/2027   8.08%  S + 2.75%   5.33%  485   486   486   0.8%
Sound Point CLO Collateralized Loan Obligation 7/26/2036  14.06%  S + 8.81%   5.25%  500   468   468   0.9%
Sound Point CLO Ltd Collateralized Loan Obligation  7/26/2036   14.13%  S + 8.81%   5.32%  500   469   511   0.8%
Total Banking, Finance, Insurance & Real Estate                     15,450   14,852   27.6%                        16,810   16,869   27.7%
                                                                 
Beverage, Food & Tobacco                                  
Flynn Restaurant Group LP First Lien – Term Loan  12/1/2028   9.69%  S + 4.36%   5.33%  746   741   749   1.2%
Total Beverage, Food & Tobacco                        741   749   1.2%
                                  
Capital Equipment                                                                 
American Trailer World Corp. First Lien - Term Loan 3/3/2028  8.95%  S + 3.85%   5.10%  679   673   614   1.1%
Chart Industries, Inc. First Lien - Term Loan 3/15/2030  8.94%  S + 3.85%   5.09%  998   993   998   1.9% First Lien – Term Loan  3/15/2030   8.67%  S + 3.35%   5.32%  913   909   917   1.5%
DMT Solutions Global Corporation First Lien - Term Loan 7/2/2024  13.01%  L + 7.50%   5.51%  662   663   655   1.2%
DS Parent, Inc. First Lien - Term Loan 12/10/2028  11.34%  S + 5.75%   5.59%  925   902   902   1.7%
Energy Acquisition LP First Lien - Term Loan 6/26/2025  9.61%  S + 4.35%   5.26%  1,153   1,144   1,081   2.0%
Novae LLC First Lien - Term Loan 12/22/2028  10.34%  S + 5.25%   5.09%  1,977   1,926   1,780   3.3% First Lien – Term Loan  12/22/2028   10.48%  S + 5.00%   5.48%  584   560   581   1.0%
Watlow Electric Manufacturing Company First Lien – Term Loan  3/2/2028   9.33%  S + 3.75%   5.58%  809   805   812   1.3%
Total Capital Equipment                     6,301   6,030   11.2%                        2,274   2,310   3.8%

 


6

 

 

Steele Creek Capital Corporation

Consolidated Schedule of Investments

June 30, 2023March 31, 2024

(unaudited)

(in thousands, except per share data)

 

Description (1) Investment Type Maturity Interest
Rate (2)		 Basis Point
Spread
Above
Index (2)		 Interest Rate
Floor / Base
Rate (2)		 Principal /
Shares		 Amortized
Cost		 Fair Value % of Net
Assets (4)		  Investment
Type		 Maturity Interest
Rate(2)		 Basis Point
Spread Above
Index(2)		 Interest Rate
Floor / Base
Rate(2)		 Principal
/Shares		 Amortized
Cost		 Fair
Value		 % of Net
Assets(3)		 
Chemicals, Plastics, & Rubber                                                   
Albaugh, LLC First Lien - Term Loan 4/6/2029  8.80%  S + 3.75%   5.05%  1,201   1,192   1,191   2.2% First Lien – Term Loan 4/6/2029  9.06% S + 3.75%  5.31%  1,195   1,187   1,162   1.9%
Bakelite UK Intermediate Ltd. First Lien - Term Loan 5/29/2029  9.39%  S + 4.15%   5.24%  990   986   975   1.8%
Bakelite US Holdco, Inc. First Lien – Term Loan 5/29/2029  9.46% S + 4.15%  5.31%  983   978   985   1.6%
DCG Acquisition Corp. First Lien - Term Loan 9/30/2026  9.70%  S + 4.60%   5.10%  1,222   1,223   1,205   2.2% First Lien – Term Loan 9/30/2026  9.93% S + 4.60%  5.33%  257   257   258   0.4%
H.B. Fuller Company(5) First Lien - Term Loan 2/15/2030  7.60%  S + 2.50%   5.10%  119   119   119   0.2% First Lien – Term Loan 2/15/2030  7.33% S + 2.00%  5.33%  423   423   425   0.7%
Oxbow Carbon LLC First Lien - Term Loan 5/10/2030  9.20%  S + 4.10%   5.10%  1,000   980   998   1.9%
Koppers Inc. First Lien – Term Loan 4/10/2030  8.32% S + 3.00%  5.32%  147   147   148   0.3%
Sparta U.S. Holdco LLC First Lien - Term Loan 8/2/2028  8.38%  S + 3.36%   5.02%  493   491   490   0.9% First Lien – Term Loan 8/2/2028  8.69% S + 3.36%  5.32%  489   487   490   0.8%
Tronox Finance LLC First Lien – Term Loan 8/16/2028  8.83% S + 3.50%  5.33%  998   989   1,000   1.6%
Total Chemicals, Plastics, & Rubber                     4,991   4,978   9.2%                    4,468   4,468   7.3%
                                                             
Construction & Building                                                             
84 Lumber Company First Lien – Term Loan 11/29/2030  8.18% S + 2.85%  5.33%  349   348   351   0.6%
American Builders & Contractors Supply Co., Inc. First Lien – Term Loan 1/31/2031  7.33% S + 2.00%  5.33%  211   211   211   0.3%
APi Group DE, Inc. (5) First Lien – Term Loan 1/3/2029  7.94% S + 2.61%  5.33%  646   646   648   1.1%
Columbus McKinnon Corporation First Lien - Term Loan 5/14/2028  8.23%  S + 3.01%   5.22%  736   731   735   1.4% First Lien – Term Loan 5/14/2028  7.81% S + 2.50%  5.31%  666   662   669   1.1%
Core & Main LP First Lien – Term Loan 2/9/2031  7.56% S + 2.25%  5.31%  701   698   702   1.1%
Crown Subsea Communications Holding, Inc. First Lien - Term Loan 4/27/2027  10.52%  S + 5.36%   5.16%  500   491   501   0.9% First Lien – Term Loan 1/30/2031  10.07% S + 4.75%  5.32%  528   523   532   0.9%
Janus International Group, LLC First Lien - Term Loan 2/12/2025  8.45%  S + 3.35%   5.10%  818   819   818   1.5% First Lien – Term Loan 8/3/2030  8.62% S + 3.35%  5.27%  630   624   633   1.0%
Michael Baker International, LLC First Lien - Term Loan 12/1/2028  10.19%  L + 5.00%   5.19%  985   977   983   1.8%
Quikrete Holdings, Inc. First Lien – Term Loan 3/25/2031  7.82% S + 2.50%  5.32%  3,716   3,707   3,722   6.1%
Smyrna Ready Mix Concrete, LLC First Lien - Term Loan 4/2/2029  9.45%  S + 4.35%   5.10%  1,238   1,205   1,239   2.3% First Lien – Term Loan 4/2/2029  8.83% S + 3.50%  5.33%  638   623   643   1.1%
Summit Materials, LLC First Lien – Term Loan 1/12/2029  7.83% S + 2.50%  5.33%  105   105   106   0.2%
TAMKO Building Products LLC First Lien – Term Loan 9/20/2030  8.83% S + 3.50%  5.33%  995   991   996   1.6%
Total Construction & Building                     4,223   4,276   7.9%                    9,138   9,213   15.1%
                                                             
Consumer Goods: Durable                                                             
Hercules Achievement, Inc. (Varsity Brands Holding Co., Inc.) First Lien - Term Loan 12/14/2026  10.22%  S + 5.11%   5.10%  995   986   959   1.8%
Hunter Douglas Holding B.V. First Lien - Term Loan 2/26/2029  8.67%  S + 3.50%   5.17%  990   986   944   1.8% First Lien – Term Loan 2/26/2029  8.82% S + 3.50%  5.32%  983   979   973   1.6%
LHS Borrower, LLC First Lien - Term Loan 2/16/2029  9.95%  S + 4.85%   5.10%  657   652   552   1.0% First Lien – Term Loan 2/16/2029  10.18% S + 4.85%  5.33%  652   647   624   1.0%
Mannington Mills, Inc. First Lien - Term Loan 8/6/2026  9.25%  S + 4.01%   5.24%  428   428   386   0.7% First Lien – Term Loan 8/6/2026  9.32% S + 4.01%  5.31%  384   384   367   0.6%
Pelican Products, Inc. First Lien - Term Loan 12/29/2028  9.64%  S + 4.40%   5.24%  985   982   898   1.7% First Lien – Term Loan 12/29/2028  9.81% S + 4.51%  5.30%  712   711   665   1.1%
Total Consumer Goods: Durable                     4,034   3,739   7.0%                    2,721   2,629   4.3%
                                                             
Consumer Goods: Non-Durable                                                             
Conair Holdings LLC First Lien - Term Loan 5/17/2028  9.29%  L + 3.75%   5.54%  1,132   1,128   1,070   2.0% First Lien – Term Loan 5/17/2028  9.19% S + 3.86%  5.33%  824   821   818   1.3%
Total Consumer Goods: Non-Durable                     1,128   1,070   2.0%                    821   818   1.3%
                              
Containers, Packaging & Glass                                                             
Canister International Group Inc. First Lien - Term Loan 12/21/2026  9.95%  S + 4.85%   5.10%  486   485   487   0.9%
Pactiv Evergreen Inc. First Lien - Term Loan 9/22/2028  8.47%  S + 3.25%   5.22%  985   961   983   1.8%
Closure Systems International Group Inc. First Lien – Term Loan 3/13/2029  9.43% S + 4.10%  5.33%  750   746   752   1.2%
Pactiv Evergreen Inc. (5) First Lien – Term Loan 9/24/2028  8.58% S + 3.25%  5.33%  977   957   982   1.6%

 


7

 

 

Steele Creek Capital Corporation

Consolidated Schedule of Investments

June 30, 2023March 31, 2024

(unaudited)

(in thousands, except per share data)

 

Description (1) Investment Type Maturity Interest
Rate (2)		 Basis Point
Spread
Above
Index (2)		 Interest Rate
Floor / Base
Rate (2)		 Principal /
Shares		 Amortized
Cost		 Fair Value % of Net
Assets (4)		  Investment
Type		 Maturity Interest
Rate(2)		  Basis Point
Spread Above
Index(2)		 Interest Rate
Floor / Base
Rate(2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Plaze, Inc. First Lien - Term Loan 8/3/2026  8.97%  S + 3.86%   5.10%  658   651   618   1.1% First Lien – Term Loan 8/3/2026  9.19% S + 3.86%  5.33%  652   647   644   1.1%
Sabert Corporation First Lien - Term Loan 12/10/2026  9.72%  S + 4.61%   5.10%  935   934   936   1.7% First Lien – Term Loan 12/10/2026  9.18% S + 3.86%  5.32%  785   784   788   1.3%
Total Containers, Packaging & Glass                     3,031   3,024   5.5%                    3,134   3,166   5.2%
                                                             
Energy: Electricity                                                              
Astoria Energy LLC First Lien - Term Loan 12/10/2027  8.60%  S + 3.50%   5.10%  952   949   946   1.8% First Lien – Term Loan 12/10/2027  8.94% S + 3.61%  5.33%  906   904   909   1.5%
Hamilton Projects Acquiror, LLC First Lien - Term Loan 6/17/2027  9.72%  S + 4.61%   5.10%  843   826   836   1.6% First Lien – Term Loan 6/17/2027  9.94% S + 4.61%  5.33%  725   710   729   1.2%
Invenergy Thermal Operating I LLC First Lien – Term Loan 8/14/2029  9.67% S + 4.36%  5.31%  821   806   825   1.3%
Invenergy Thermal Operating I LLC First Lien – Term Loan 8/14/2029  9.67% S + 4.36%  5.31%  71   70   72   0.1%
Vistra Operations Company LLC First Lien – Term Loan 12/20/2030  7.33% S + 2.00%  5.33%  843   836   843   1.4%
Total Energy: Electricity                     1,775   1,782   3.4%                    3,326   3,378   5.5%
                                                             
Energy: Oil & Gas                                                             
AL NGPL Holdings, LLC First Lien - Term Loan 4/13/2028  8.92%  S + 4.01%   4.90%  670   674   666   1.2% First Lien – Term Loan 4/13/2028  8.58% S + 3.25%  5.33%  644   647   646   1.1%
AL NGPL Holdings, LLC First Lien - Term Loan 4/13/2028  9.01%  S + 3.86%   5.15%  412   404   409   0.8%
BCP Renaissance Parent L.L.C. First Lien – Term Loan 10/31/2028  8.83% S + 3.50%  5.33%  186   185   186   0.3%
CQP Holdco LP First Lien - Term Loan 6/5/2028  8.69%  L + 3.50%   5.19%  1,225   1,221   1,224   2.3% First Lien – Term Loan 12/31/2030  8.30% S + 3.00%  5.30%  726   724   729   1.2%
Delek US Holdings, Inc. First Lien - Term Loan 11/19/2029  8.70%  S + 3.60%   5.10%  628   604   621   1.2%
Prairie ECI Acquiror LP First Lien - Term Loan 3/11/2026  9.94%  L + 4.75%   5.19%  500   493   494   0.9%
Traverse Midstream Partners LLC First Lien - Term Loan 2/16/2028  8.94%  S + 3.85%   5.09%  412   410   410   0.8%
GIP Pilot Acquisition Partners, L.P. First Lien – Term Loan 10/4/2030  8.33% S + 3.00%  5.33%  211   210   212   0.3%
ITT Holdings LLC First Lien – Term Loan 10/5/2030  8.68% S + 3.35%  5.33%  680   667   682   1.1%
WhiteWater DBR Holdco LLC First Lien – Term Loan 3/3/2031  8.05% S + 2.75%  5.30%  441   439   442   0.7%
Total Energy: Oil & Gas                     3,806   3,824   7.2%                    2,872   2,897   4.7%
                                                             
Environmental Industries                              
Clean Harbors, Inc. (5) First Lien – Term Loan 10/8/2028  7.19% S + 1.86%  5.33%  527   526   528   0.9%
Total Environmental Industries                    526   528   0.9%
                              
Forest Products & Paper                                                             
Schweitzer-Mauduit International, Inc. First Lien - Term Loan 4/20/2028  9.00%  L + 3.75%   5.25%  980   973   945   1.8%
Mativ Holdings, Inc. (5) First Lien – Term Loan 4/20/2028  9.19% S + 3.86%  5.33%  433   430   433   0.7%
Total Forest Products & Paper                     973   945   1.8%                    430   433   0.7%
                                                             
Healthcare & Pharmaceuticals                                                             
Alvogen Pharma US, Inc. First Lien - Term Loan 12/31/2023  10.64%  S + 5.25%   5.39%  900   892   870   1.6%
Amneal Pharmaceuticals First Lien - Term Loan 5/4/2025  8.72%  S + 3.61%   5.10%  992   927   962   1.8%
ANI Pharmaceuticals, Inc. First Lien - Term Loan 11/19/2027  11.19%  L + 6.00%   5.19%  985   975   980   1.8%
ASP Navigate Acquisition Corp. First Lien - Term Loan 10/6/2027  9.59%  L + 4.25%   5.34%  982   982   965   1.8%
Amneal Pharmaceuticals LLC (5) First Lien – Term Loan 5/4/2028  10.83% S + 5.50%  5.33%  983   934   983   1.6%
ANI Pharmaceuticals, Inc. (5) First Lien – Term Loan 11/19/2027  11.44% S + 6.11%  5.33%  978   969   980   1.6%
Athletico Management, LLC First Lien - Term Loan 2/15/2029  9.64%  S + 4.40%   5.24%  248   240   202   0.4% First Lien – Term Loan 2/15/2029  9.70% S + 4.40%  5.30%  246   239   185   0.3%
Aveanna Healthcare LLC First Lien - Term Loan 7/17/2028  9.23%  L + 3.75%   5.48%  427   426   366   0.7%
Aveanna Healthcare LLC (5) First Lien – Term Loan 7/17/2028  9.19% S + 3.85%  5.34%  423   423   408   0.7%
Bayou Intermediate II, LLC First Lien - Term Loan 8/2/2028  9.69%  S + 4.60%   5.09%  985   982   927   1.7% First Lien – Term Loan 8/2/2028  10.08% S + 4.76%  5.32%  708   706   704   1.2%
Carestream Dental Technology Parent Limited First Lien - Term Loan 9/1/2024  10.23%  L + 4.50%   5.73%  888   879   799   1.5% First Lien – Term Loan 9/1/2024  9.81% S + 4.50%  5.31%  888   885   777   1.3%
CCRR Parent, Inc. First Lien - Term Loan 3/6/2028  8.97%  S + 3.75%   5.22%  978   974   943   1.8%
Charlotte Buyer, Inc. First Lien – Term Loan 2/11/2028  10.57% S + 5.25%  5.32%  497   488   500   0.8%

 


8

 

 

Steele Creek Capital Corporation

Consolidated Schedule of Investments

June 30, 2023March 31, 2024

(unaudited)

(in thousands, except per share data)

 

Description (1) Investment Type Maturity Interest
Rate (2)		 Basis Point
Spread
Above
Index (2)		 Interest Rate
Floor / Base
Rate (2)		 Principal /
Shares		 Amortized
Cost		 Fair Value % of Net
Assets (4)		  Investment
Type		 Maturity  Interest
Rate(2)		  Basis Point
Spread Above
Index(2)		  Interest Rate
Floor / Base
Rate(2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Confluent Health, LLC First Lien - Term Loan 11/30/2028  9.22%  S + 4.00%   5.22%  948   945   863   1.6% First Lien – Term Loan  11/30/2028   9.44%  S + 4.11%   5.33%  941   939   931   1.5%
Embecta Corp. (5) First Lien – Term Loan  3/30/2029   8.33%  S + 3.00%   5.33%  1,496   1,444   1,390   2.3%
Ensemble RCM, LLC First Lien – Term Loan  8/1/2029   8.32%  S + 3.00%   5.32%  943   938   946   1.6%
FC Compassus, LLC First Lien - Term Loan 12/31/2026  9.56%  S + 4.51%   5.05%  1,221   1,220   1,120   2.1% First Lien – Term Loan  12/31/2026   9.69%  S + 4.36%   5.33%  1,212   1,211   1,191   1.9%
Global Medical Response, Inc. First Lien - Term Loan 10/2/2025  9.44%  S + 4.25%   5.19%  488   483   277   0.5% First Lien – Term Loan  10/2/2025   9.84%  S + 4.51%   5.33%  484   480   453   0.7%
Golden State Buyer, Inc. First Lien - Term Loan 6/21/2026  9.95%  S + 4.85%   5.10%  943   938   889   1.7% First Lien – Term Loan  6/21/2026   10.18%  S + 4.85%   5.33%  938   934   929   1.6%
Help at Home, LLC First Lien - Term Loan 10/29/2027  10.21%  S + 5.00%   5.21%  1,001   987   976   1.8%
Help at Home, LLC First Lien - Delayed Draw Loan 10/29/2027  10.21%  S + 5.00%   5.21%  127   125   123   0.2%
HAH Group Holding Company LLC First Lien – Term Loan  10/29/2027   10.44%  S + 5.00%   5.44%  993   981   991   1.6%
HAH Group Holding Company LLC First Lien – Delayed Draw Loan  10/29/2027   10.44%  S + 5.00%   5.44%  126   124   125   0.2%
Ingenovis Health, Inc. First Lien – Term Loan  3/6/2028   9.19%  S + 3.75%   5.44%  970   967   879   1.5%
Iqvia Inc. First Lien – Term Loan  1/2/2031   7.31%  S + 2.00%   5.31%  249   249   251   0.4%
Onex TSG Intermediate Corp. First Lien - Term Loan 2/28/2028  10.06%  S + 5.01%   5.05%  980   966   876   1.6% First Lien – Term Loan  2/28/2028   10.32%  S + 5.01%   5.31%  973   961   974   1.6%
PDS Holdco Inc. First Lien - Term Loan 8/18/2028  9.69%  L + 4.50%   5.19%  1,341   1,336   1,164   2.2%
PDS Holdco Inc. First Lien - Delayed Draw Loan 8/18/2028  9.69%  L + 4.50%   5.19%  137   137   119   0.2%
Sotera Health Holdings, LLC First Lien - Term Loan 12/11/2026  8.82%  S + 3.75%   5.07%  220   214   220   0.4%
PDS Holdco, Inc. First Lien – Term Loan  8/18/2028   10.10%  S + 4.76%   5.34%  1,330   1,326   827   1.4%
PDS Holdco, Inc. First Lien – Delayed Draw Loan  8/18/2028   10.10%  S + 4.76%   5.34%  136   136   84   0.1%
Phoenix Guarantor Inc. First Lien – Term Loan  2/21/2031   8.58%  S + 3.25%   5.33%  1,000   990   988   1.6%
Select Medical Corporation (5) First Lien – Term Loan  3/6/2027   8.33%  S + 3.00%   5.33%  101   100   101   0.2%
Sotera Health Holdings, LLC (5) First Lien – Term Loan  12/11/2026   9.08%  S + 3.75%   5.33%  218   213   218   0.4%
TTF Holdings, LLC First Lien - Term Loan 3/31/2028  9.25%  L + 4.00%   5.25%  635   631   635   1.2% First Lien – Term Loan  3/31/2028   9.44%  S + 4.11%   5.33%  635   632   636   1.0%
U.S. Anesthesia Partners, Inc. First Lien - Term Loan 10/2/2028  9.42%  S + 4.25%   5.17%  1,094   1,090   1,030   1.9% First Lien – Term Loan  10/1/2028   9.69%  S + 4.36%   5.33%  1,086   1,082   1,040   1.7%
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) First Lien - Term Loan 12/15/2027  10.45%  S + 5.35%   5.10%  985   979   960   1.8% First Lien – Term Loan  12/15/2027   10.70%  S + 5.40%   5.30%  978   973   980   1.6%
Waystar Technologies, Inc. First Lien – Term Loan  10/22/2029   9.33%  S + 4.00%   5.33%  300   300   301   0.5%
Zelis Cost Management Buyer, Inc. First Lien – Term Loan  9/28/2029   8.08%  S + 2.75%   5.33%  633   630   634   1.0%
Total Healthcare & Pharmaceuticals                     17,328   16,266   30.3%                        20,254   19,406   31.9%
                                                                 
High Tech Industries                                                                 
Casa Systems, Inc. First Lien - Term Loan 12/20/2027  12.22%  S + 6.93%   5.29%  1,277   1,277   1,053   2.0%
Casa Systems, Inc. Warrants -  -   -   -   132   -   -   0.0%
Boxer Parent Company Inc. First Lien – Term Loan  12/29/2028   9.58%  S + 4.25%   5.33%  617   618   622   1.0%
Casa Systems, Inc. (4) (6) First Lien – Term Loan  12/20/2027   —   —   —   1,231   1,231   184   0.3%
Casa Systems, Inc. (4) Equity  —   —   —   —   65   —   —   0.0%
Casa Systems, Inc. (4) Warrants  —   —   —   —   33   —   —   0.0%
Casa Systems, Inc. (4) Warrants  —   —   —   —   33   —   —   0.0%
CE Intermediate I, LLC First Lien - Term Loan 11/10/2028  8.84%  L + 3.50%   5.34%  988   980   973   1.8% First Lien – Term Loan  11/10/2028   8.95%  S + 3.65%   5.30%  980   973   977   1.6%
GoTo Group, Inc. First Lien – Term Loan  4/30/2028   10.17%  S + 4.85%   5.32%  433   293   334   0.6%
Ingram Micro Inc. First Lien - Term Loan 6/30/2028  9.04%  L + 3.50%   5.54%  730   725   729   1.4% First Lien – Term Loan  6/30/2028   8.57%  S + 3.26%   5.31%  730   725   732   1.2%
LogMeIn, Inc. First Lien - Term Loan 8/31/2027  9.94%  L + 4.75%   5.19%  975   960   615   1.1%
Monotype Imaging Holdings Inc. First Lien - Term Loan 10/9/2026  10.34%  S + 5.00%   5.34%  720   718   718   1.3%
Precisely Software Incorporated First Lien – Term Loan  4/24/2028   9.59%  S + 4.26%   5.32%  974   972   976   1.6%
Proofpoint, Inc. First Lien – Term Loan  8/31/2028   8.69%  S + 3.36%   5.33%  126   126   126   0.2%
Quest Software US Holdings Inc. First Lien - Term Loan 2/1/2029  9.45%  S + 4.40%   5.05%  1,489   1,477   1,163   2.2% First Lien – Term Loan  2/1/2029   9.71%  S + 4.40%   5.31%  1,478   1,467   1,129   1.8%
Revspring, Inc. (fka Dantom Systems, Inc.) First Lien - Term Loan 10/11/2025  9.50%  S + 4.26%   5.24%  1,001   996   965   1.8%
VeriFone Systems, Inc. First Lien - Term Loan 8/20/2025  9.48%  L + 4.00%   5.48%  1,377   1,367   1,304   2.4%
Vision Solutions, Inc. (Precisely Software Incorporated) First Lien - Term Loan 4/24/2028  9.26%  L + 4.00%   5.26%  981   980   935   1.7%
Rocket Software, Inc. First Lien – Term Loan  11/28/2028   10.08%  S + 4.75%   5.33%  747   737   743   1.2%
Ultra Clean Holdings, Inc. (5) First Lien - Term Loan  2/28/2028   8.82%  S + 3.50%   5.32%  183   182   184   0.3%

 


9

 

 

Steele Creek Capital Corporation

Consolidated Schedule of Investments

June 30, 2023March 31, 2024

(unaudited)

(in thousands, except per share data)

 

Description (1) Investment Type Maturity Interest
Rate (2)		 Basis Point
Spread
Above
Index (2)		 Interest Rate
Floor / Base
Rate (2)		 Principal /
Shares		 Amortized
Cost		 Fair Value % of Net
Assets (4)		  Investment
Type		 Maturity Interest
Rate(2)		 Basis Point
Spread Above
Index(2)		 Interest Rate
Floor / Base
Rate(2)		 Principal
/Shares		 Amortized
Cost		 Fair
Value		 % of Net
Assets(3)		 
Watlow Electric Manufacturing Company First Lien - Term Loan 3/2/2028  9.06%  S + 4.01%   5.05%  342   341   339   0.6%
Zotec Partners, LLC First Lien - Term Loan 2/14/2024  9.25%  S + 4.01%   5.24%  996   977   894   1.7%
VeriFone Systems, Inc. First Lien - Term Loan 8/20/2025 9.59% S + 4.00% 5.59% 1,366 1,359 1,215 2.0%
Xerox Corporation (5) First Lien - Term Loan 11/17/2029 9.33% S + 4.00% 5.33% 417  405  419  0.7%
Total High Tech Industries                     10,798   9,688   18.0%              9,088  7,641  12.5%
                                                  
Hotel, Gaming & Leisure                                                  
Alterra Mountain Company First Lien - Term Loan 5/31/2030 9.17% S + 3.85% 5.32% 500 500 503 0.8%
Arcis Golf LLC First Lien - Term Loan 11/24/2028  9.47%  S + 4.25%   5.22%  988   980   990   1.8% First Lien - Term Loan 11/24/2028 9.19% S + 3.86% 5.33% 983 976 987 1.6%
ClubCorp Holdings, Inc. First Lien - Term Loan 9/18/2024  8.29%  L + 2.75%   5.54%  495   485   476   0.9%
Fertitta Entertainment, LLC First Lien - Term Loan 1/27/2029  9.10%  S + 4.00%   5.10%  988   986   977   1.8% First Lien - Term Loan 1/27/2029 9.08% S + 3.75% 5.33% 980 979 984 1.6%
Herschend Entertainment Company, LLC First Lien - Term Loan 8/28/2028  8.97%  S + 3.86%   5.10%  198   196   199   0.4% First Lien - Term Loan 8/27/2028 8.33% S + 3.00% 5.33% 196 195 197 0.3%
Kingpin Intermediate Holdings LLC First Lien - Term Loan 2/8/2028  8.60%  S + 3.50%   5.10%  301   298   300   0.6%
Hilton Domestic Operating Company Inc. First Lien - Term Loan 11/8/2030 7.43% S + 2.00% 5.43% 750 748 752 1.2%
Kingpin Intermediate Holdings LLC (5) First Lien - Term Loan 2/8/2028 8.83% S + 3.50% 5.33% 299 296 299 0.5%
Sabre GLBL Inc. First Lien - Term Loan 12/17/2027  8.72%  S + 3.61%   5.10%  424   424   335   0.6% First Lien - Term Loan 12/17/2027 8.94% S + 3.61% 5.33% 426 425 363 0.6%
Sabre GLBL Inc. First Lien - Term Loan 12/17/2027  8.72%  S + 3.61%   5.10%  274   273   216   0.4% First Lien - Term Loan 12/17/2027 8.94% S + 3.61% 5.33% 272 271 232 0.4%
Sabre GLBL Inc. First Lien - Term Loan 6/30/2028  10.20%  S + 5.10%   5.10%  347   332   278   0.5% First Lien - Term Loan 6/30/2028 10.43% S + 5.10% 5.33% 347 333 305 0.5%
Station Casinos LLC First Lien - Term Loan 3/14/2031 7.58% S + 2.25% 5.33% 220 219 220 0.4%
TA TT Buyer, LLC First Lien - Term Loan 4/2/2029 10.30% S + 5.00% 5.30% 314  311  316  0.5%
Total Hotel, Gaming & Leisure                     3,974   3,771   7.0%              5,253  5,158  8.4%
                                                  
Media: Advertising, Printing & Publishing                                                  
Oceankey (U.S.) II Corp. First Lien - Term Loan 12/15/2028  8.70%  S + 3.60%   5.10%  988   980   940   1.7% First Lien - Term Loan 12/15/2028 8.93% S + 3.60% 5.33% 980 973 971 1.6%
Thryv, Inc. First Lien - Term Loan 3/1/2026  13.72%  S + 8.50%   5.22%  923   920   916   1.7%
Thryv, Inc. (5) First Lien - Term Loan 3/1/2026 13.94% S + 8.61% 5.33% 734  733  737  1.2%
Total Media: Advertising, Printing & Publishing                     1,900   1,856   3.4%              1,706  1,708  2.8%
                                                  
Media: Broadcasting & Subscription                                                  
Charter Communications Operating, LLC First Lien - Term Loan 12/7/2030 7.33% S + 2.00% 5.33% 998 993 989 1.6%
LCPR Loan Financing LLC First Lien - Term Loan 10/16/2028  8.94%  S + 3.75%   5.19%  500   501   500   0.9% First Lien - Term Loan 10/16/2028 9.19% S + 3.86% 5.33% 500 501 494 0.8%
Sinclair Television Group, Inc. First Lien - Term Loan 4/21/2029  8.95%  S + 3.85%   5.10%  743   723   562   1.0% First Lien - Term Loan 4/21/2029 9.18% S + 3.85% 5.33% 737  720  592  1.0%
Total Media: Broadcasting & Subscription                     1,224   1,062   1.9%              2,214  2,075  3.4%
                                                  
Retail                                                  
Apro, LLC First Lien - Term Loan 11/14/2026  9.25%  L + 3.75%   5.50%  1,320   1,314   1,315   2.4% First Lien - Term Loan 11/14/2026 9.19% S + 3.86% 5.32% 1,310 1,305 1,314 2.1%
Dave & Buster’s, Inc. First Lien - Term Loan 6/29/2029  9.00%  S + 3.85%   5.15%  3,000   2,970   2,996   5.6%
Great Outdoors Group, LLC First Lien - Term Loan 3/6/2028  8.94%  L + 3.75%   5.19%  975   972   969   1.8% First Lien - Term Loan 3/6/2028 9.19% S + 3.86% 5.33% 968 965 969 1.6%
Upbound Group, Inc. First Lien - Term Loan 2/17/2028 9.12% S + 3.68% 5.44% 546  546  546  0.9%
Total Retail              2,816  2,829  4.6%

 


10

 

 

Steele Creek Capital Corporation

Consolidated Schedule of Investments

June 30, 2023March 31, 2024

(unaudited)

(in thousands, except per share data)

 

Description (1) Investment Type Maturity Interest
Rate (2)		 Basis Point
Spread
Above
Index (2)		 Interest Rate
Floor / Base
Rate (2)		 Principal /
Shares		 Amortized
Cost		 Fair Value % of Net
Assets (4)		  Investment
Type		 Maturity Interest
Rate(2)		 Basis Point
Spread Above
Index(2)		 Interest Rate
Floor / Base
Rate(2)		 Principal
/Shares		 Amortized
Cost		 Fair
Value		 % of Net
Assets(3)		 
IRB Holding Corp. First Lien - Term Loan 12/15/2027  8.20%  S + 3.10%   5.10%  296   293   294   0.5%
Rent-A-Center, Inc. First Lien - Term Loan 2/17/2028  8.56%  L + 3.25%   5.31%  550   550   551   1.0%
Total Retail                     6,099   6,125   11.3%
                               
Services: Business                                                  
Ahead DB Holdings, LLC First Lien - Term Loan 10/18/2027  9.09%  S + 3.85%   5.24%  980   980   918   1.7% First Lien - Term Loan 10/18/2027 9.16% S + 3.85% 5.31% 972 972 975 1.6%
Aragorn Parent Corporation First Lien - Term Loan 12/15/2028 9.58% S + 4.25% 5.33% 421 417 423 0.7%
Artera Services, LLC First Lien - Term Loan 3/6/2025  8.84%  S + 3.50%   5.34%  980   973   860   1.6% First Lien - Term Loan 2/15/2031 9.81% S + 4.50% 5.31% 528 524 531 0.9%
Camelot U.S. Acquisition LLC First Lien - Term Loan 1/31/2031 8.08% S + 2.75% 5.33% 316 315 316 0.5%
Citco Funding LLC First Lien - Term Loan 4/27/2028 8.42% S + 3.25% 5.17% 746 743 749 1.2%
Conduent Business Services, LLC First Lien - Term Loan 10/16/2028 9.69% S + 4.36% 5.33% 498 497 499 0.8%
Congruex Group LLC First Lien - Term Loan 5/3/2029  11.09%  S + 5.90%   5.19%  990   969   963   1.8% First Lien - Term Loan 5/3/2029 11.21% S + 5.90% 5.31% 983 963 936 1.6%
DTI Holdco, Inc. First Lien - Term Loan 4/26/2029  9.80%  S + 4.75%   5.05%  1,122   1,103   1,049   2.1% First Lien - Term Loan 4/26/2029 10.06% S + 4.75% 5.31% 1,114 1,096 1,115 1.8%
Energize Holdco LLC First Lien - Term Loan 12/8/2028  8.97%  S + 3.86%   5.10%  866   863   855   1.6%
Indy US Bidco, LLC First Lien - Term Loan 3/6/2028  8.85%  S + 3.75%   5.10%  489   487   455   0.8%
Flame NewCo, LLC First Lien - Term Loan 6/30/2028 7.43% S + 2.10% 5.33% 376 376 354 0.6%
GTCR W Merger Sub LLC First Lien - Term Loan 1/31/2031 8.31% S + 3.00% 5.31% 750 746 754 1.2%
Instructure Holdings, Inc. (5) First Lien - Term Loan 10/30/2028 8.35% S + 3.01% 5.34% 249 247 250 0.4%
Iron Mountain Information Management, LLC First Lien - Term Loan 1/31/2031 7.58% S + 2.25% 5.33% 421 418 418 0.7%
Mermaid Bidco Inc. (Datasite) First Lien - Term Loan 12/22/2027  9.78%  S + 4.50%   5.28%  981   979   973   1.8% First Lien - Term Loan 12/22/2027 9.58% S + 4.25% 5.33% 974 972 978 1.6%
Misys Limited First Lien - Term Loan 6/13/2024  9.23%  L + 3.50%   5.73%  983   985   948   1.8%
Phoenix Services International LLC (3) First Lien - Term Loan 6/30/2028  11.10%  S + 6.00%   5.10%  166   166   166   0.3%
Phoenix Services International LLC (3) Equity —  —   —   —   31   311   311   0.6%
Pitney Bowes Inc. First Lien - Term Loan 3/17/2028  9.22%  S + 4.11%   5.10%  978   971   908   1.7%
Nexus Buyer LLC First Lien - Term Loan 12/13/2028 9.83% S + 4.50% 5.33% 750 729 747 1.2%
Nielsen Consumer Inc. First Lien - Term Loan 3/6/2028 9.08% S + 3.75% 5.33% 485 484 468 0.8%
Phoenix Services International LLC Equity — — — — 31 311 153 0.3%
Pitney Bowes Inc. (5) First Lien - Term Loan 3/17/2028 9.44% S + 4.11% 5.33% 970 964 970 1.6%
Presidio Holdings Inc. First Lien - Term Loan 1/22/2027  8.70%  S + 3.60%   5.10%  989   990   986   1.8% First Lien - Term Loan 1/22/2027 8.93% S + 3.60% 5.33% 982 982 986 1.6%
Rockwood Service Corporation First Lien - Term Loan 1/23/2027 9.69% S + 4.36% 5.33% 248 248 249 0.4%
Sitel Group First Lien - Term Loan 8/28/2028  8.95%  L + 3.75%   5.20%  1,474   1,468   1,446   2.7% First Lien - Term Loan 8/28/2028 9.19% S + 3.86% 5.33% 1,463 1,458 1,261 2.1%
Skopima Consilio Parent LLC First Lien - Term Loan 5/12/2028  9.19%  L + 4.00%   5.19%  983   978   958   1.8% First Lien - Term Loan 5/12/2028 9.44% S + 4.11% 5.33% 975 972 972 1.6%
Tempo Acquisition, LLC First Lien - Term Loan 8/31/2028  8.10%  S + 3.00%   5.10%  983   981   984   1.8%
TRC Companies LLC First Lien - Term Loan 12/8/2028 9.19% S + 3.86% 5.33% 860 857 859 1.4%
UST Global Inc First Lien - Term Loan 11/20/2028  8.72%  S + 3.61%   5.10%  985   981   972   1.8% First Lien - Term Loan 11/20/2028 8.94% S + 3.61% 5.32% 978 975 976 1.6%
VM Consolidated, Inc. First Lien - Term Loan 3/24/2028  8.47%  L + 3.36%   5.10%  2   2   2   0.0%
Zelis Cost Management Buyer, Inc. First Lien - Term Loan 9/30/2026  8.69%  L + 3.50%   5.19%  417   415   418   0.8%
Vestis Corporation (5) First Lien - Term Loan 2/22/2031 7.58% S + 2.25% 5.33% 316  315  316  0.5%
Total Services: Business                     14,602   14,172   26.5%              16,581  16,255  26.7%
                                                  
Services: Consumer                                                  
WW International, Inc. First Lien - Term Loan 4/13/2028  8.72%  S + 3.61%   5.10%  945   942   617   1.1%
Prime Security Services Borrower, LLC First Lien - Term Loan 10/13/2030 7.83% S + 2.50% 5.33% 499 494 500 0.8%
University Support Services LLC First Lien - Term Loan 2/10/2029 8.43% S + 3.10% 5.33% 995 995 994 1.6%
WW International, Inc. (5) First Lien - Term Loan 4/13/2028 8.94% S + 3.61% 5.33% 945  943  422  0.7%
Total Services: Consumer                     942   617   1.1%              2,432  1,916  3.1%

 


11

 

 

Steele Creek Capital Corporation

Consolidated Schedule of Investments

June 30, 2023March 31, 2024

(unaudited)

(in thousands, except per share data)

 

Description (1) Investment Type Maturity Interest
Rate (2)		 Basis Point
Spread
Above
Index (2)		 Interest Rate
Floor / Base
Rate (2)		 Principal /
Shares		 Amortized
Cost		 Fair Value % of Net
Assets (4)		  Investment
Type		 Maturity Interest
Rate(2)		 Basis Point
Spread Above
Index(2)		 Interest Rate
Floor / Base
Rate(2)		 Principal
/Shares		 Amortized
Cost		 Fair
Value		 % of Net
Assets(3)		 
Telecommunications                                                   
CCI Buyer, Inc. First Lien - Term Loan 12/17/2027  9.24%  S + 4.00%   5.24%  978   971   961   1.8%
Ciena Corporation First Lien - Term Loan 1/18/2030  7.59%  S + 2.50%   5.09%  998   993   1,000   1.9%
ConvergeOne Holdings, Corp. First Lien - Term Loan 1/4/2026  10.37%  L + 5.00%   5.37%  1,466   1,450   936   1.7%
Digi International Inc. First Lien - Term Loan 11/1/2028  10.22%  S + 5.00%   5.22%  686   675   687   1.3%
Ciena Corporation (5) First Lien - Term Loan 10/24/2030  7.33% S + 2.00%  5.33%  993   989   996   1.6%
ConvergeOne Holdings, Corp. (6) First Lien - Term Loan 1/4/2026  —  —  —   1,454   1,427   306   0.5%
Guardian US Holdco LLC First Lien - Term Loan 1/31/2030  9.05%  S + 4.00%   5.05%  297   291   295   0.5% First Lien - Term Loan 1/31/2030  8.81% S + 3.50%  5.31%  295   290   296   0.5%
Iridium Satellite LLC First Lien - Term Loan 9/20/2030  7.83% S + 2.50%  5.33%  125   125   125   0.2%
Mavenir Systems, Inc. First Lien - Term Loan 8/18/2028  10.14%  L + 4.75%   5.39%  1,304   1,294   947   1.8% First Lien - Term Loan 8/18/2028  10.34% S + 5.01%  5.32%  1,294   1,285   926   1.5%
Patagonia Holdco LLC First Lien - Term Loan 8/1/2029  10.79%  S + 5.75%   5.04%  496   413   424   0.8%
SBA Senior Finance II LLC First Lien - Term Loan 1/25/2031  7.34% S + 2.00%  5.34%  1,250   1,247   1,254   2.1%
Syniverse Holdings, LLC First Lien - Term Loan 5/13/2027  12.24%  S + 7.00%   5.24%  993   960   913   1.7% First Lien - Term Loan 5/13/2027  12.30% S + 7.00%  5.30%  985   958   943   1.6%
Zayo Group Holdings, Inc. First Lien - Term Loan 3/9/2027  8.22%  S + 3.00%   5.22%  1,000   997   788   1.5% First Lien - Term Loan 3/9/2027  8.44% S + 3.00%  5.44%  1,000   998   881   1.4%
Total Telecommunications                     8,044   6,951   13.0%                    7,319   5,727   9.4%
                                                             
Transportation: Cargo                                                             
Carriage Purchaser, Inc. First Lien - Term Loan 9/30/2028  9.46%  S + 4.36%   5.10%  983   979   965   1.8% First Lien - Term Loan 10/2/2028  9.69% S + 4.36%  5.33%  975   972   980   1.6%
Clue Opco LLC First Lien - Term Loan 12/19/2030  9.83% S + 4.50%  5.33%  697   670   688   1.1%
Daseke Companies, Inc.(5) First Lien - Term Loan 3/9/2028  9.22%  S + 4.11%   5.10%  853   850   838   1.6% First Lien - Term Loan 3/9/2028  11.50% S + 3.00%  8.50%  775   773   776   1.3%
Echo Global Logistics, Inc. First Lien - Term Loan 11/23/2028  8.70%  S + 3.50%   5.20%  988   986   960   1.8% First Lien - Term Loan 11/23/2028  8.93% S + 3.60%  5.33%  980   979   968   1.6%
Kenan Advantage Group, Inc., The First Lien - Term Loan 3/24/2026  9.73%  S + 4.43%   5.30%  250   248   250   0.5% First Lien - Term Loan 1/25/2029  9.08% S + 3.75%  5.33%  633   630   634   1.0%
XPO, Inc. First Lien - Term Loan 5/24/2028  7.09%  S + 2.00%   5.09%  1,000   995   1,004   1.9%
Total Transportation: Cargo                     4,058   4,017   7.6%                    4,024   4,046   6.6%
                                                             
Transportation: Consumer                                                             
Avolon TLB Borrower 1 (US) LLC First Lien - Term Loan 12/1/2027  7.40%  L + 2.25%   5.15%  609   593   609   1.1% First Lien - Term Loan 6/22/2028  7.33% S + 2.00%  5.33%  1,184   1,180   1,186   1.9%
Avolon TLB Borrower 1 (US) LLC First Lien - Term Loan 6/22/2028  7.58%  S + 2.50%   5.08%  310   307   310   0.6%
Brown Group Holding, LLC First Lien - Term Loan 7/2/2029  8.80%  S + 3.75%   5.05%  997   988   997   1.9%
First Student Bidco Inc. First Lien - Term Loan 7/21/2028  8.50%  S + 3.26%   5.24%  360   358   349   0.6% First Lien - Term Loan 7/21/2028  8.56% S + 3.26%  5.30%  358   356   358   0.6%
First Student Bidco Inc. First Lien - Term Loan 7/21/2028  8.50%  S + 3.26%   5.24%  135   134   131   0.2% First Lien - Term Loan 7/21/2028  8.56% S + 3.26%  5.30%  108   108   109   0.2%
Safe Fleet Holdings LLC First Lien - Term Loan 2/16/2029  8.93%  S + 3.85%   5.08%  635   632   635   1.2%
United AirLines, Inc. First Lien - Term Loan 4/21/2028  9.29%  L + 3.75%   5.54%  778   775   779   1.4%
United AirLines, Inc. (5) First Lien - Term Loan 2/22/2031  8.08% S + 2.75%  5.33%  369   367   370   0.6%
Total Transportation: Consumer                     3,787   3,810   7.0%                    2,011   2,023   3.3%

 


12

 

 

Steele Creek Capital Corporation

Consolidated Schedule of Investments

June 30, 2023March 31, 2024

(unaudited)

(in thousands, except per share data)

 

Description (1) Investment Type Maturity Interest
Rate (2)		  Basis Point
Spread
Above
Index (2)		  Interest Rate
Floor / Base
Rate (2)		  Principal /
Shares		  Amortized
Cost		  Fair Value  % of Net
Assets (4)		 
Utilities: Electric                                
PG&E Corporation First Lien - Term Loan 6/23/2025  8.21%  S + 3.11%   5.10%  485   484   486   0.9%
Total Utilities: Electric                      484   486   0.9%
                                 
Total Investments made in United States Companies                      128,718   122,752   228.4%
                                 
Investments made in Ireland Companies                                
Aerospace & Defense                                
Setanta Aircraft Leasing DAC First Lien - Term Loan 11/2/2028  7.54%  L + 2.00%   5.54%  1,500   1,496   1,502   2.8%
Total Aerospace & Defense                      1,496   1,502   2.8%
                                 
Services: Consumer                                
Cimpress plc First Lien - Term Loan 5/17/2028  8.69%  L + 3.50%   5.19%  980   973   960   1.8%
Total Services: Consumer                      973   960   1.8%
                                 
Total Investments made in Ireland Companies                      2,469   2,462   4.6%
                                 
Investments made in Luxembourg Companies                                
Containers, Packaging & Glass                                
Mar Bidco S.a r.l. First Lien - Term Loan 7/7/2028  9.00%  S + 3.95%   5.05%  14   14   13   0.0%
Total Containers, Packaging & Glass                      14   13   0.0%
                                 
Telecommunications                                
Venga Finance S.a r.l. First Lien - Term Loan 6/28/2029  10.28%  S + 5.01%   5.26%  993   966   956   1.8%
Zacapa S.a r.l. First Lien - Term Loan 3/22/2029  9.24%  S + 4.00%   5.24%  987   984   964   1.8%
Total Telecommunications                      1,950   1,920   3.6%
                                 
Total Investments made in Luxembourg Companies                      1,964   1,933   3.6%
Description (1) Investment
Type		 Maturity Interest
Rate(2)		  Basis Point
Spread Above
Index(2)		 Interest Rate
Floor / Base
Rate(2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Utilities: Electric                        
Calpine Construction Finance Company, L.P. First Lien - Term Loan 7/31/2030  7.58% S + 2.25%  5.33%  249   247   249   0.4%
Calpine Corporation First Lien - Term Loan 1/31/2031  7.33% S + 2.00%  5.33%  1,793   1,784   1,784   2.9%
PG&E Corporation (5) First Lien - Term Loan 6/23/2027  7.83% S + 2.50%  5.33%  500   498   501   0.8%
Total Utilities: Electric                    2,529   2,534   4.1%
                               
Total Investments made in the United States                    133,586   128,734   210.8%
                               
Investments made in Canada                              
Beverage, Food & Tobacco                              
1011778 B.C. Unlimited Liability Company (5) First Lien - Term Loan 9/20/2030  7.58% S + 2.25%  5.33%  998   993   998   1.6%
Total Beverage, Food & Tobacco                    993   998   1.6%
                               
Transportation: Consumer                              
Air Canada (5) First Lien - Term Loan 3/14/2031  7.83% S + 2.50%  5.33%  1,500   1,496   1,505   2.5%
Total Transportation: Consumer                    1,496   1,505   2.5%
                               
Services: Business                              
Nuvei Technologies Corp. (5) First Lien - Term Loan 12/19/2030  8.43% S + 3.10%  5.33%  1,053   1,046   1,057   1.7%
Total Services: Business                    1,046   1,057   1.7%
                               
Total Investments made in Canada                    3,535   3,560   5.8%

 


13

 

Steele Creek Capital Corporation

Consolidated Schedule of Investments

June 30, 2023March 31, 2024

(unaudited)

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate(2)		  Basis Point
Spread Above
Index(2)		 Interest Rate
Floor / Base
Rate(2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Investments made in France                              
Healthcare & Pharmaceuticals                              
Curium BidCo S.a r.l. (5) First Lien - Term Loan 7/31/2029  9.81% S + 4.50%  5.31%  248   246   250   0.4%
Total Healthcare & Pharmaceuticals                    246   250   0.4%
                               
Total Investments made in France                    246   250   0.4%
                               
Investments made in Germany                              
Construction & Building                              
Minimax Viking GmbH (5) First Lien - Term Loan 7/31/2028  8.19% S + 2.86%  5.33%  498   496   499   0.8%
Total Construction & Building                    496   499   0.8%
                               
Investments made in Germany                    496   499   0.8%
                               
Investments made in Ireland                              
Aerospace & Defense                              
Setanta Aircraft Leasing DAC (5) First Lien - Term Loan 11/5/2028  7.56% S + 2.26%  5.30%  500   498   502   0.8%
Total Aerospace & Defense                    498   502   0.8%
                               
Hotel, Gaming & Leisure                              
Flutter Entertainment plc (5) First Lien - Term Loan 11/25/2030  7.56% S + 2.25%  5.31%  957   954   959   1.6%
Total Hotel, Gaming & Leisure                    954   959   1.6%
                               
Services: Consumer                              
Cimpress plc (5) First Lien - Term Loan 5/17/2028  8.94% S + 3.61%  5.33%  973   966   973   1.6%
Total Services: Consumer                    966   973   1.6%
                               
Transportation: Consumer                              
Delos Aircraft Designated Activity Company First Lien - Term Loan 10/31/2027  7.30% S + 2.00%  5.30%  500   500   502   0.8%
Total Transportation: Consumer                    500   502   0.8%
                               
Total Investments made in Ireland                    2,918   2,936   4.8%
                               
Investments made in Luxembourg                              
Containers, Packaging & Glass                              
Mar Bidco S.a r.l. (5) First Lien - Term Loan 7/7/2028  9.56% S + 4.25%  5.31%  14   13   13   0.0%
Total Containers, Packaging & Glass                    13   13   0.0%
                               
Telecommunications                              
Venga Finance S.a r.l. (5) First Lien - Term Loan 6/28/2029  10.35% S + 5.01%  5.34%  985   962   986   1.6%
Total Telecommunications                    962   986   1.6%
                               
Total Investments made in Luxembourg                    975   999   1.6%
                               
Investments made in the Netherlands                        
Chemicals, Plastics, & Rubber                        
Nouryon Finance B.V. (5) First Lien - Term Loan 4/3/2028  9.42% S + 4.10%  5.32%  864   853   868   1.4%
Total Chemicals, Plastics, & Rubber                    853   868   1.4%

14

Steele Creek Capital Corporation

Consolidated Schedule of Investments

March 31, 2024

(unaudited)

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest
Rate (2)		  Basis Point
Spread
Above
Index (2)		  Interest Rate
Floor / Base
Rate (2)		  Principal /
Shares		  Amortized
Cost		  Fair Value  % of Net
Assets (4)		 
Investments made in Netherland Companies                                
Chemicals, Plastics, & Rubber                                
Nouryon Finance B.V. First Lien - Term Loan 4/3/2028  9.32%  S + 4.10%   5.22%  353   346   350   0.7%
Total Chemicals, Plastics, & Rubber                      346   350   0.7%
                                 
Total Investments made in Netherland Companies                      346   350   0.7%
                                 
Investments made in United Kingdom Companies                                
Banking, Finance, Insurance & Real Estate                                
HIG Finance 2 Limited First Lien - Term Loan 11/12/2027  8.50%  L + 3.25%   5.25%  1,466   1,466   1,461   2.7%
Total Banking, Finance, Insurance & Real Estate                      1,466   1,461   2.7%
                                 
Chemicals, Plastics, & Rubber                                
Ineos US Finance LLC First Lien - Term Loan 2/19/2030  8.70%  S + 3.60%   5.10%  205   203   204   0.4%
Ineos Quattro Holdings UK Limited First Lien - Term Loan 3/1/2030  8.95%  S + 3.85%   5.10%  119   118   119   0.2%
Total Chemicals, Plastics, & Rubber                      321   323   0.6%
                                 
Total Investments made in United Kingdom Companies                      1,787   1,784   3.3%
                                 
Total Non-controlled/Non-Affiliate Investments                     $135,284  $129,281   240.6%
Description (1) Investment
Type		 Maturity Interest
Rate(2)		  Basis Point
Spread Above
Index(2)		 Interest Rate
Floor / Base
Rate(2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Retail                              
Peer Holding III B.V. (5) First Lien - Term Loan 10/28/2030  8.56% S + 3.25%  5.31%  528   524   530   0.9%
Total Retail                    524   530   0.9%
                               
Total Investments made in the Netherlands                    1,377   1,398   2.3%
                               
Investments made in Puerto Rico                              
Services: Business                              
Evertec Group, LLC First Lien - Term Loan 10/30/2030  8.83% S + 3.50%  5.33%  475   468   477   0.8%
Total Services: Business                    468   477   0.8%
                               
Total Investments made in Puerto Rico                    468   477   0.8%
                               
Investments made in Switzerland                              
Transportation: Consumer                              
Radar Bidco SARL (5) First Lien - Term Loan 3/27/2031  9.56% S + 4.25%  5.31%  1,000   995   1,001   1.6%
Total Transportation: Consumer                    995   1,001   1.6%
                               
Total Investments made in Switzerland                    995   1,001   1.6%
                               
Investments made in the United Kingdom                              
Chemicals, Plastics, & Rubber                              
Ineos US Finance LLC (5) First Lien - Term Loan 2/18/2030  8.93% S + 3.60%  5.33%  203   202   204   0.3%
Ineos Quattro Holdings UK Limited (5) First Lien - Term Loan 4/2/2029  9.68% S + 4.35%  5.33%  500   490   500   0.8%
Ineos Quattro Holdings UK Limited (5) First Lien - Term Loan 3/14/2030  9.18% S + 3.85%  5.33%  118   117   118   0.2%
Total Chemicals, Plastics, & Rubber                    809   822   1.3%
                               
Total Investments made in the United Kingdom                    809   822   1.3%
                               
Total Non-controlled/Non-Affiliated Investments                   $145,405  $140,676   230.2%

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

(2)The majority of the investments bear interest at a rate that may be determined by reference to Secured Overnight Financing Rate (“SOFR” or “S”), however a small percentage of loans are still transitioning from London Interbank Offered Rate (“LIBOR” or “L”). Both indices reset monthly or quarterly. For each such investment, the Fund has provided the spread over SOFR and the current contractual interest rate in effect at March 31, 2024. As of March 31, 2024, rates for 1M S, 3M S, 6M S, and 12M S are 5.33%, 5.30%, 5.22%, and 5.00% respectively. As of March 31, 2024 rate for 3M L is 5.56%.

 

(3)Percentages are based on net assets of $61,119 as of March 31, 2024.

(4)Inputs in the valuation of this investment included certain unobservable inputs that were significant to the valuation as a whole (see Note 4)

(5)Investment is a non-qualifying asset for RIC reporting purposes, non-qualifying assets represent 17.9% of total assets.

(6)Investment or a portion of the investment was on non-accrual status as of March 31, 2024

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

15

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2023

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate (2)		  Basis
Point
Spread
Above
Index (2)		  Interest
Rate
Floor /
Base
Rate (2)		  Principal/
Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets (3)		 
Non-controlled/Non-Affiliated Investments - 224.0% of Shareholder’s Equity (4)                         
Investments made in the United States                         
Aerospace & Defense                               
Amentum Government Services Holdings LLC First Lien - Term Loan 2/15/2029  9.36% S + 4.00%        5.36%  853  $     850  $     855        1.4%
Barnes Group Inc. (5) First Lien - Term Loan 9/3/2030  8.46% S + 3.10%   5.36%  998   997   1,002   1.6%
HDT Holdco, Inc. First Lien - Term Loan 7/8/2027  11.36% S + 6.01%   5.35%  505   495   245   0.4%
LSF11 Trinity Bidco, Inc. First Lien - Term Loan 6/14/2030  9.36% S + 4.00%   5.36%  490   483   494   0.8%
MAG DS Corp. First Lien - Term Loan 4/1/2027  10.95% S + 5.60%   5.35%  916   888   880   1.4%
Peraton Corp. First Lien - Term Loan 2/1/2028  9.21% S + 3.85%   5.36%  952   949   955   1.5%
TransDigm Inc. (5) First Lien - Term Loan 

2/14/2031

  8.60% S + 3.25%   5.35%  750   748   754   1.2%
Vertex Aerospace Services Corp. First Lien - Term Loan 12/6/2028  8.71% S + 3.35%   5.36%  983   979   985   1.6%
Total Aerospace & Defense                     6,389   6,170   9.9%
                                
Automotive                               
Autokiniton US Holdings, Inc. First Lien - Term Loan 4/6/2028  9.97% S + 4.61%   5.36%  968   962   972   1.6%
First Brands Group, LLC First Lien - Term Loan 3/30/2027  10.88% S + 5.43%   5.45%  248   239   246   0.4%
First Brands Group, LLC First Lien - Term Loan 3/30/2027  10.88% S + 5.43%   5.45%  977   977   971   1.6%
Holley Inc. (5) First Lien - Term Loan 11/17/2028  9.22% S + 3.75%   5.47%  904   905   874   1.4%
Phinia Inc. (5) First Lien - Term Loan 7/3/2028  9.46% S + 4.10%   5.36%  499   480   502   0.8%
Thor Industries, Inc. (5) First Lien - Term Loan 11/15/2030  8.11% S + 2.75%   5.36%  750   746   753   1.2%
Total Automotive                     4,309   4,318   7.0%

16

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2023

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate (2)		  Basis
Point
Spread
Above
Index (2)		  Interest
Rate
Floor /
Base
Rate (2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Banking, Finance, Insurance & Real Estate                               
AmWINS Group, Inc. First Lien - Term Loan 2/19/2028  8.22% S + 2.86%   5.36%       495   491   497   0.8%
AssuredPartners, Inc. First Lien - Term Loan 2/12/2027  8.86% S + 3.50%   5.36%  983   981   986   1.6%
Baldwin Risk Partners, LLC First Lien - Term Loan 10/14/2027  8.97% S + 3.61%   5.36%  746   741   747   1.2%
Citadel Securities LP First Lien - Term Loan 7/29/2030  7.97% S + 2.61%   5.36%  1,448   1,437   1,453   2.3%
Cushman & Wakefield U.S. Borrower, LLC (5) First Lien - Term Loan 1/31/2030  8.71% S + 3.35%   5.36%  498   489   495   0.8%
DRW Holdings, LLC First Lien - Term Loan 3/1/2028  9.22% S + 3.86%   5.36%  531   530   531   0.9%
FinCo I LLC First Lien - Term Loan 6/27/2029  8.38% S + 3.00%   5.38%  746   743   750   1.2%
Greystar Real Estate Partners, LLC (5) First Lien - Term Loan 8/21/2030  9.12% S + 3.75%   5.37%  527   519   528   0.9%
Guggenheim Partners Investment Management Holdings, LLC First Lien - Term Loan 12/12/2029  8.60% S + 3.25%   5.35%  113   111   113   0.2%
Jane Street Group, LLC First Lien - Term Loan 1/26/2028  8.22% S + 2.86%   5.36%  975   968   980   1.6%
Lakeview Loan Servicing, LLC (4) (5) First Lien - Term Loan 12/21/2028  8.74% S + 3.36%   5.38%  1,000   995   995   1.6%
LendingTree, Inc. (5) First Lien - Term Loan 9/15/2028  9.21% S + 3.86%   5.35%  1,481   1,481   1,378   2.2%
ONBE, Inc. First Lien - Term Loan 12/10/2027  11.97% S + 6.61%   5.36%  805   784   808   1.3%
OFSBS 2022-11A (5) Collateralized Loan Obligation 10/18/2035  8.89% S + 3.50%   5.39%  1,000   1,000   1,006   1.6%
OFSI BSL CLO XII, Ltd. Collateralized Loan Obligation 1/20/2035  14.27% S + 8.85%   5.42%  1,000   983   997   1.6%
Osaic Holdings, Inc. (5) First Lien - Term Loan 8/17/2028  9.86% S + 4.50%   5.36%  468   464   470   0.8%
Paysafe Group Holdings II Limited First Lien - Term Loan 6/28/2028  8.22% S + 2.86%   5.36%  979   954   978   1.6%
Resolute Investment Managers, Inc. (4) First Lien - Term Loan 4/30/2027  12.11% S + 6.76%   5.35%  454   454   454   0.7%
Resolute Investment Managers, Inc. (4) Equity —  —  —   —   6   —   —   0.0%
Russell Investments US Institutional Holdco, Inc. First Lien - Term Loan 5/30/2025  8.96% S + 3.60%   5.36%  1,558   1,549   1,463   2.4%
Ryan Specialty Group, LLC First Lien - Term Loan 9/1/2027  8.46% S + 3.10%   5.36%  486   487   487   0.8%
Sound Point CLO Ltd Collateralized Loan Obligation 7/26/2036  14.23% S + 8.81%   5.42%  500   468   502   0.8%
Total Banking, Finance, Insurance & Real Estate                     16,629   16,618   26.9%

17

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2023

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate (2)		  Basis
Point
Spread
Above
Index (2)		  Interest
Rate
Floor /
Base
Rate (2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Beverage, Food & Tobacco                               
Flynn Restaurant Group LP First Lien - Term Loan 12/1/2028  9.72% S + 4.36%   5.36%  748   743            753   1.2%
Total Beverage, Food & Tobacco                     743   753   1.2%
                                
Capital Equipment                               
Chart Industries, Inc. First Lien - Term Loan 3/15/2030  8.69% S + 3.35%   5.34%  913   909   917   1.5%
DS Parent, Inc. First Lien - Term Loan 12/10/2028  11.21% S + 5.75%   5.46%  900   879   902   1.5%
Novae LLC First Lien - Term Loan 12/22/2028  10.52% S + 5.00%   5.52%  585   563   576   0.9%
Watlow Electric Manufacturing Company First Lien - Term Loan 3/2/2028  9.40% S + 4.01%   5.39%  825   820   827   1.3%
Total Capital Equipment                     3,171   3,222   5.2%
                                
Chemicals, Plastics, & Rubber                               
Albaugh, LLC First Lien - Term Loan 4/6/2029  9.13% S + 3.75%   5.38%  1,198   1,189   1,162   1.9%
Bakelite US Holdco, Inc. First Lien - Term Loan 5/29/2029  9.50% S + 4.15%   5.35%  985   982   984   1.6%
DCG Acquisition Corp. First Lien - Term Loan 9/30/2026  9.96% S + 4.60%   5.36%  258   258   257   0.4%
Element Solutions Inc (Macdermid, Incorporated) (5) First Lien - Term Loan 12/18/2030  7.36% S + 2.00%   5.36%  1,000   998   1,004   1.6%
H.B. Fuller Company (5) First Lien - Term Loan 2/15/2030  7.61% S + 2.25%   5.36%  118   118   119   0.2%
Sparta U.S. Holdco LLC First Lien - Term Loan 8/2/2028  8.71% S + 3.36%   5.34%  490   488   490   0.8%
Tronox Finance LLC First Lien - Term Loan 8/16/2028  8.85% S + 3.50%   5.35%  1,000   991   1,001   1.6%
Total Chemicals, Plastics, & Rubber                     5,024   5,017   8.1%
                                
Construction & Building                               
84 Lumber Company First Lien - Term Loan 11/29/2030  8.21% S + 2.85%   5.36%  350   348   351   0.6%
APi Group DE, Inc. (5) First Lien - Term Loan 1/3/2029  7.97% S + 2.61%   5.36%  645   645   646   1.0%
Columbus McKinnon Corporation First Lien - Term Loan 5/14/2028  8.39% S + 3.01%   5.38%  694   689   697   1.1%
Crown Subsea Communications Holding, Inc. First Lien - Term Loan 4/27/2027  10.71% S + 5.36%   5.34%  488   479   491   0.8%
Janus International Group, LLC First Lien - Term Loan 8/3/2030  8.76% S + 3.35%   5.41%  631   625   634   1.0%
Smyrna Ready Mix Concrete, LLC First Lien - Term Loan 4/2/2029  8.86% S + 3.50%   5.36%  640   624   642   1.0%
Summit Materials, LLC First Lien - Term Loan 1/12/2029  7.85% S + 2.50%   5.35%  105   105   105   0.2%
TAMKO Building Products LLC First Lien - Term Loan 9/20/2030  8.87% S + 3.50%   5.37%  998   993   1,004   1.6%
Total Construction & Building                     4,508   4,570   7.3%

18

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2023

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate (2)		  Basis
Point
Spread
Above
Index (2)		  Interest
Rate
Floor /
Base
Rate (2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Consumer Goods: Durable                               
Hercules Achievement, Inc. (Varsity Brands Holding Co., Inc.) First Lien - Term Loan 12/15/2026  10.47% S + 5.11%   5.36%  990   982   986   1.6%
Hunter Douglas Holding B.V. First Lien - Term Loan 2/26/2029  8.88% S + 3.50%   5.38%  985   981   983   1.6%
LHS Borrower, LLC First Lien - Term Loan 2/16/2029  10.21% S + 4.85%   5.36%  654   648   593   1.0%
Mannington Mills, Inc. First Lien - Term Loan 8/6/2026  9.36% S + 4.01%   5.35%  385   385   356   0.6%
Pelican Products, Inc. First Lien - Term Loan 12/29/2028  9.75% S + 4.40%   5.35%  980   978   913   1.5%
Recess Holdings, Inc. First Lien - Term Loan 3/29/2027  9.39% S + 4.00%   5.39%  631   626   637   1.0%
Total Consumer Goods: Durable                     4,600   4,468   7.3%
                                
Consumer Goods: Non-Durable                               
Conair Holdings LLC First Lien - Term Loan 5/17/2028  9.22% S + 3.86%   5.36%  1,126   1,122   1,107         1.8%
Total Consumer Goods: Non-Durable                     1,122   1,107   1.8%
                                
Containers, Packaging & Glass                               
Canister International Group Inc. First Lien - Term Loan 12/21/2026  10.21% S + 4.85%   5.36%  484   482   486   0.8%
Pactiv Evergreen Inc. (5) First Lien - Term Loan 9/24/2028  8.72% S + 3.36%   5.36%  977   955   981   1.6%
Plaze, Inc. First Lien - Term Loan 8/3/2026  9.22% S + 3.86%   5.36%  654   648   637   1.0%
Sabert Corporation First Lien - Term Loan 12/10/2026  9.22% S + 3.86%   5.35%  803   801   809   1.3%
Total Containers, Packaging & Glass                     2,886   2,913   4.7%
                                
Energy: Electricity                               
Astoria Energy LLC First Lien - Term Loan 12/10/2027  8.97% S + 3.61%   5.36%  920   917   923   1.5%
Hamilton Projects Acquiror, LLC First Lien - Term Loan 6/17/2027  9.97% S + 4.61%   5.36%  771   755   775   1.3%
Invenergy Thermal Operating I LLC First Lien - Term Loan 8/14/2029  9.92% S + 4.61%   5.31%  864   848   868   1.4%
Invenergy Thermal Operating I LLC First Lien - Term Loan 8/14/2029  9.92% S + 4.61%   5.31%  71   70   72   0.1%
Vistra Operations Company LLC First Lien - Term Loan 12/20/2030  7.36% S + 2.00%   5.36%  845   837   846   1.4%
Total Energy: Electricity                     3,427   3,484   5.7%
                                
Energy: Oil & Gas                               
AL NGPL Holdings, LLC First Lien - Term Loan 4/13/2028  8.85% S + 3.50%   5.35%  657   660   658   1.1%
BCP Renaissance Parent L.L.C. First Lien - Term Loan 10/31/2028  8.87% S + 3.50%   5.37%  186   186   187   0.3%
CQP Holdco LP First Lien - Term Loan 12/31/2030  8.35% S + 3.00%   5.35%  727   726   730   1.2%
GIP Pilot Acquisition Partners, L.P. First Lien - Term Loan 10/4/2030  8.39% S + 3.00%   5.39%  211   211   211   0.3%
ITT Holdings LLC First Lien - Term Loan 10/5/2030  8.71% S + 3.35%   5.36%  998   978   1,002   1.6%
Prairie ECI Acquiror LP First Lien - Term Loan 3/11/2026  10.21% S + 4.85%   5.36%  499   493   500   0.8%
Traverse Midstream Partners LLC First Lien - Term Loan 2/16/2028  9.24% S + 3.85%   5.39%  412   410   414   0.7%
Total Energy: Oil & Gas                     3,664   3,702   6.0%

19

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2023

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate (2)		  Basis
Point
Spread
Above
Index (2)		  Interest
Rate
Floor /
Base
Rate (2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Environmental Industries                               
JFL-Tiger Acquisition Co., Inc. First Lien - Term Loan 10/17/2030  10.40% S + 5.00%   5.40%  316   308   317   0.5%
Total Environmental Industries                     308   317   0.5%
                                
Forest Products & Paper                               
Mativ Holdings, Inc. (5) First Lien - Term Loan 4/20/2028  9.22% S + 3.86%   5.36%  433   430   431   0.7%
Total Forest Products & Paper                     430   431   0.7%
                                
Healthcare & Pharmaceuticals                               
Amneal Pharmaceuticals LLC (5) First Lien - Term Loan 5/4/2028  10.86% S + 5.50%   5.36%  989   937   976   1.6%
ANI Pharmaceuticals, Inc. (5) First Lien - Term Loan 11/19/2027  11.47% S + 6.11%   5.36%  980   971   984   1.6%
Athletico Management, LLC First Lien - Term Loan 2/15/2029  9.75% S + 4.40%   5.35%  246   240   208   0.3%
Aveanna Healthcare LLC (5) First Lien - Term Loan 7/17/2028  9.24% S + 3.85%   5.39%  424   424   396   0.6%
Bayou Intermediate II, LLC First Lien - Term Loan 8/2/2028  10.15% S + 4.50%   5.65%  710   708   679   1.1%
Carestream Dental Technology Parent Limited First Lien - Term Loan 9/1/2024  9.95% S + 4.60%   5.35%  888   883   741   1.2%
Charlotte Buyer, Inc. First Lien - Term Loan 2/11/2028  10.61% S + 5.25%   5.36%  499   489   501   0.8%
Confluent Health, LLC First Lien - Term Loan 11/30/2028  9.47% S + 4.11%   5.36%  943   941   927   1.5%
FC Compassus, LLC First Lien - Term Loan 12/31/2026  9.89% S + 4.51%   5.38%  1,215   1,214   1,197   1.9%
Global Medical Response, Inc. First Lien - Term Loan 10/2/2025  9.93% S + 4.51%   5.42%  485   481   382   0.6%
Golden State Buyer, Inc. First Lien - Term Loan 6/21/2026  10.19% S + 4.85%   5.34%  941   936   906   1.5%
HAH Group Holding Company LLC First Lien - Term Loan 10/29/2027  10.46% S + 5.00%   5.46%  996   983   990   1.6%
HAH Group Holding Company LLC First Lien - Delayed Draw Loan 10/29/2027  10.46% S + 5.00%   5.46%  126   124   125   0.2%
Ingenovis Health, Inc. First Lien - Term Loan 3/6/2028  9.22% S + 3.86%   5.36%  973   969   947   1.5%
Iqvia Inc. First Lien - Term Loan 1/2/2031  7.35% S + 2.00%   5.35%  250   250   251   0.4%
Onex TSG Intermediate Corp. First Lien - Term Loan 2/28/2028  10.39% S + 5.01%   5.38%  975   963   965   1.6%
Pacific Dental Services, LLC First Lien - Term Loan 5/5/2028  8.97% S + 3.61%   5.36%  210   210   210   0.3%
PDS Holdco, Inc. First Lien - Term Loan 8/18/2028  10.15% S + 4.76%   5.39%  1,334   1,329   843   1.4%
PDS Holdco, Inc. First Lien - Delayed Draw Loan 8/18/2028  10.15% S + 4.76%   5.39%  136   136   86   0.1%
R1 RCM Inc. (5) First Lien - Term Loan 6/21/2029  8.33% S + 3.00%   5.33%  500   494   501   0.8%
Select Medical Corporation (5) First Lien - Term Loan 3/6/2027  8.36% S + 3.00%   5.36%  104   104   105   0.2%
Sotera Health Holdings, LLC (5) First Lien - Term Loan 12/11/2026  9.11% S + 3.75%   5.36%  219   214   219   0.4%
TTF Holdings, LLC First Lien - Term Loan 3/31/2028  9.47% S + 4.11%   5.36%  635   631   635   1.0%
U.S. Anesthesia Partners, Inc. First Lien - Term Loan 10/1/2028  9.71% S + 4.36%   5.34%  1,089   1,085   998   1.6%
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) First Lien - Term Loan 12/15/2027  10.75% S + 5.40%   5.35%  980   975   976   1.6%
Total Healthcare & Pharmaceuticals                     16,691   15,748   25.4%

20

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2023

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate (2)		  Basis
Point
Spread
Above
Index (2)		  Interest
Rate
Floor /
Base
Rate (2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
High Tech Industries                               
Boxer Parent Company Inc. First Lien - Term Loan 12/29/2028  9.61% S + 4.25%   5.36%  369   365   372   0.6%
Casa Systems, Inc. First Lien - Term Loan 12/20/2027  12.26% S + 6.93%   5.33%  1,231   1,231   880   1.4%
Casa Systems, Inc. (4) Equity —  —  —   —   65   —   24   0.0%
Casa Systems, Inc. (4) Warrants —  —  —   —   33   —   —   0.0%
Casa Systems, Inc. (4) Warrants —  —  —   —   33   —   —   0.0%
CE Intermediate I, LLC First Lien - Term Loan 11/10/2028  9.02% S + 3.65%   5.37%  983   975   975   1.6%
GoTo Group, Inc. First Lien - Term Loan 8/31/2027  10.28% S + 4.90%   5.38%  970   957   646   1.0%
Ingram Micro Inc. First Lien - Term Loan 6/30/2028  8.61% S + 3.26%   5.35%  730   725   733   1.2%
Monotype Imaging Holdings Inc. First Lien - Term Loan 10/9/2026  10.45% S + 5.00%   5.45%  716   714   720   1.2%
Precisely Software Incorporated First Lien - Term Loan 4/24/2028  9.64% S + 4.26%   5.38%  976   975   970   1.6%
Quest Software US Holdings Inc. First Lien - Term Loan 2/1/2029  9.78% S + 4.40%   5.38%  1,481   1,470   1,141   1.8%
Revspring, Inc. (fka Dantom Systems, Inc.) First Lien - Term Loan 10/11/2025  9.61% S + 4.26%   5.35%  736   732   733   1.2%
Rocket Software, Inc. First Lien - Term Loan 11/28/2028  10.11% S + 4.75%   5.36%  749   738   737   1.2%
VeriFone Systems, Inc. First Lien - Term Loan 8/20/2025  9.64% S + 4.00%   5.64%  1,370   1,362   1,330   2.2%
Xerox Corporation (5) First Lien - Term Loan 11/17/2029  9.36% S + 4.00%   5.36%  422   410   423   0.7%
Total High Tech Industries                     10,654   9,684   15.7%
                                
Hotel, Gaming & Leisure                               
Arcis Golf LLC First Lien - Term Loan 11/24/2028  9.22% S + 3.86%   5.36%  985   978   990   1.6%
ClubCorp Holdings, Inc. First Lien - Term Loan 9/18/2026  10.61% S + 5.26%   5.35%  481   475   465   0.8%
Fertitta Entertainment, LLC First Lien - Term Loan 1/27/2029  9.36% S + 4.00%   5.36%  983   981   984   1.6%
Herschend Entertainment Company, LLC First Lien - Term Loan 8/27/2028  9.22% S + 3.86%   5.36%  197   196   198   0.3%
Hilton Domestic Operating Company Inc. First Lien - Term Loan 11/8/2030  7.46% S + 2.10%   5.36%  750   748   754   1.2%
Kingpin Intermediate Holdings LLC (5) First Lien - Term Loan 2/8/2028  8.86% S + 3.50%   5.36%  299   297   300   0.5%
Sabre GLBL Inc. First Lien - Term Loan 12/17/2027  8.97% S + 3.61%   5.36%  426   425   374   0.6%
Sabre GLBL Inc. First Lien - Term Loan 12/17/2027  8.97% S + 3.61%   5.36%  272   271   239   0.4%
Sabre GLBL Inc. First Lien - Term Loan 6/30/2028  10.46% S + 5.10%   5.36%  347   333   310   0.5%
TA TT Buyer, LLC First Lien - Term Loan 4/2/2029  10.35% S + 5.00%   5.35%  315   312   314   0.5%
Total Hotel, Gaming & Leisure                     5,016   4,928   8.0%

21

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2023

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate (2)		  Basis
Point
Spread
Above
Index (2)		  Interest
Rate
Floor /
Base
Rate (2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Media: Advertising, Printing & Publishing                               
Oceankey (U.S.) II Corp. First Lien - Term Loan 12/15/2028  8.96% S + 3.60%   5.36%  983   975   963   1.6%
Thryv, Inc. (5) First Lien - Term Loan 3/1/2026  13.97% S + 8.61%   5.36%  757   755   758   1.2%
Total Media: Advertising, Printing & Publishing                     1,730   1,721   2.8%
                                
Media: Broadcasting & Subscription                               
Charter Communications Operating, LLC First Lien - Term Loan 12/7/2030  7.36% S + 2.00%   5.36%  1,000   995   998   1.6%
LCPR Loan Financing LLC First Lien - Term Loan 10/16/2028  9.29% S + 3.94%   5.35%  500   501   502   0.8%
Sinclair Television Group, Inc. First Lien - Term Loan 4/21/2029  9.21% S + 3.85%   5.36%  739   722   607   1.0%
Total Media: Broadcasting & Subscription                     2,218   2,107   3.4%
                                
Retail                               
Apro, LLC First Lien - Term Loan 11/14/2026  9.21% S + 3.86%   5.35%  1,313   1,308   1,316   2.1%
Great Outdoors Group, LLC First Lien - Term Loan 3/6/2028  9.22% S + 3.86%   5.36%  970   967   971   1.6%
Upbound Group, Inc. First Lien - Term Loan 2/17/2028  9.12% S + 3.68%   5.44%  547   547   548   0.9%
Total Retail                     2,822   2,835   4.6%

22

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2023

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate (2)		  Basis
Point
Spread
Above
Index (2)		  Interest
Rate
Floor /
Base
Rate (2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Services: Business                               
Ahead DB Holdings, LLC First Lien - Term Loan 10/18/2027  9.20% S + 3.85%   5.35%  975   975   973   1.6%
Aragorn Parent Corporation First Lien - Term Loan 12/15/2028  9.61% S + 4.25%   5.36%  422   418   422   0.7%
Artera Services, LLC First Lien - Term Loan 3/6/2025  8.95% S + 3.50%   5.45%  975   970   921   1.5%
Citco Funding LLC First Lien - Term Loan 4/27/2028  8.64% S + 3.25%   5.39%  748   744   752   1.2%
Congruex Group LLC First Lien - Term Loan 5/3/2029  11.28% S + 5.90%   5.38%  985   965   941   1.5%
DTI Holdco, Inc. First Lien - Term Loan 4/26/2029  10.13% S + 4.75%   5.38%  1,117   1,098   1,106   1.8%
Flame NewCo, LLC First Lien - Term Loan 6/30/2028  11.46% S + 6.10%   5.36%  373   373   348   0.6%
GTCR W Merger Sub LLC First Lien - Term Loan 9/20/2030  8.33% S + 3.00%   5.33%  750   746   754   1.2%
Instructure Holdings, Inc. (5) First Lien - Term Loan 10/30/2028  8.68% S + 3.18%   5.50%  249   248   251   0.4%
Iron Mountain Information Management, LLC First Lien - Term Loan 1/31/2031  7.61% S + 2.25%   5.36%  422   419   423   0.7%
Mermaid Bidco Inc. (Datasite) First Lien - Term Loan 12/22/2027  9.88% S + 4.50%   5.38%  976   974   982   1.6%
Nexus Buyer LLC First Lien - Term Loan 12/13/2028  9.86% S + 4.50%   5.36%  750   728   746   1.2%
Nielsen Consumer Inc. First Lien - Term Loan 3/6/2028  9.11% S + 3.75%   5.36%  486   485   467   0.7%
Phoenix Services International LLC Equity —  —  —   —   31   311   153   0.2%
Pitney Bowes Inc. (5) First Lien - Term Loan 3/17/2028  9.47% S + 4.11%   5.36%  973   966   960   1.5%
Presidio Holdings Inc. First Lien - Term Loan 1/22/2027  8.98% S + 3.60%   5.38%  984   984   988   1.6%
Rockwood Service Corporation First Lien - Term Loan 1/23/2027  9.72% S + 4.36%   5.36%  249   248   250   0.4%
Sitel Group First Lien - Term Loan 8/28/2028  9.22% S + 3.86%   5.36%  1,466   1,461   1,414   2.3%
Skopima Consilio Parent LLC First Lien - Term Loan 5/12/2028  9.47% S + 4.00%   5.47%  978   974   976   1.6%
Tempo Acquisition, LLC First Lien - Term Loan 8/31/2028  8.11% S + 2.75%   5.36%  978   975   983   1.6%
TRC Companies LLC First Lien - Term Loan 12/8/2028  9.22% S + 3.86%   5.36%  862   859   862   1.4%
UST Global Inc First Lien - Term Loan 11/20/2028  8.96% S + 3.61%   5.34%  980   977   979   1.6%
VM Consolidated, Inc. First Lien - Term Loan 3/24/2028  8.72% S + 3.36%   5.36%  2   2   2   0.0%
Zelis Cost Management Buyer, Inc. First Lien - Term Loan 9/30/2026  8.97% S + 3.61%   5.36%  415   413   417   0.7%
Total Services: Business                     17,313   17,070   27.6%
                                
Services: Consumer                               
Prime Security Services Borrower, LLC First Lien - Term Loan 10/13/2030  7.84% S + 2.50%   5.34%  500   495   502   0.8%
University Support Services LLC First Lien - Term Loan 2/10/2029  8.71% S + 3.35%   5.36%  997   997   999   1.6%
WW International, Inc. (5) First Lien - Term Loan 4/13/2028  8.97% S + 3.61%   5.36%  945   942   674   1.1%
Total Services: Consumer                     2,434   2,175   3.5%

23

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2023

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate (2)		  Basis
Point
Spread
Above
Index (2)		  Interest
Rate
Floor /
Base
Rate (2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Telecommunications                               
CCI Buyer, Inc. First Lien - Term Loan 12/17/2027  9.35% S + 4.00%   5.35%  973   967   971   1.6%
Ciena Corporation (5) First Lien - Term Loan 10/24/2030  7.36% S + 2.00%   5.36%  995   991   999   1.6%
ConvergeOne Holdings, Corp. First Lien - Term Loan 1/4/2026  12.50% L + 4.00%   8.50%  1,458   1,445   829   1.3%
Guardian US Holdco LLC First Lien - Term Loan 1/31/2030  9.35% S + 4.00%   5.35%  296   290   297   0.5%
Iridium Satellite LLC First Lien - Term Loan 9/20/2030  7.86% S + 2.50%   5.36%  52   52   52   0.1%
Mavenir Systems, Inc. First Lien - Term Loan 8/18/2028  10.39% S + 5.01%   5.38%  1,297   1,288   918   1.5%
Syniverse Holdings, LLC First Lien - Term Loan 5/13/2027  12.35% S + 7.00%   5.35%  988   959   873   1.4%
Zayo Group Holdings, Inc. First Lien - Term Loan 3/9/2027  8.47% S + 3.00%   5.47%  1,000   997   865   1.4%
Total Telecommunications                     6,989   5,804   9.4%
                                
Transportation: Cargo                               
Carriage Purchaser, Inc. First Lien - Term Loan 10/2/2028  9.72% S + 4.36%   5.36%  978   974   962   1.6%
Clue Opco LLC First Lien - Term Loan 12/19/2030  9.86% S + 4.50%   5.36%  750   720   713   1.1%
Daseke Companies, Inc. (5) First Lien - Term Loan 3/9/2028  9.47% S + 4.11%   5.36%  800   797   800   1.3%
Echo Global Logistics, Inc. First Lien - Term Loan 11/23/2028  8.96% S + 3.50%   5.46%  983   981   964   1.6%
Kenan Advantage Group, Inc., The First Lien - Term Loan 3/24/2026  9.47% S + 4.11%   5.36%  249   247   249   0.4%
Total Transportation: Cargo                     3,719   3,688   6.0%
                                
Transportation: Consumer                               
Avolon TLB Borrower 1 (US) LLC First Lien - Term Loan 6/22/2028  7.36% S + 2.00%   5.36%  1,187   1,182   1,192   1.9%
Brown Group Holding, LLC First Lien - Term Loan 7/2/2029  9.11% S + 3.75%   5.36%  992   983   996   1.6%
First Student Bidco Inc. First Lien - Term Loan 7/21/2028  8.61% S + 3.26%   5.35%  359   357   357   0.6%
First Student Bidco Inc. First Lien - Term Loan 7/21/2028  8.61% S + 3.26%   5.35%  108   108   108   0.2%
Safe Fleet Holdings LLC First Lien - Term Loan 2/23/2029  9.21% S + 3.85%   5.36%  632   629   634   1.0%
United AirLines, Inc. (5) First Lien - Term Loan 4/21/2028  9.22% S + 3.86%   5.36%  774   772   778   1.3%
Total Transportation: Consumer                     4,031   4,065   6.6%

24

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2023

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate (2)		  Basis
Point
Spread
Above
Index (2)		  Interest
Rate
Floor /
Base
Rate (2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Utilities: Electric                               
Calpine Construction Finance Company, L.P. First Lien - Term Loan 7/31/2030  7.61% S + 2.25%   5.36%  249   248   250   0.4%
PG&E Corporation (5) First Lien - Term Loan 6/23/2027  7.86% S + 2.50%   5.36%  500   498   501   0.8%
Total Utilities: Electric                     746   751   1.2%
                                
Total Investments made in the United States                     131,573   127,666   206.5%
                                
Investments made in Canada                               
Beverage, Food & Tobacco                               
1011778 B.C. Unlimited Liability Company (5) First Lien - Term Loan 9/20/2030  7.61% S + 2.25%   5.36%  1,000   995   1,002   1.6%
Total Beverage, Food & Tobacco                     995   1,002   1.6%
                                
Hotel, Gaming & Leisure                               
Ontario Gaming GTA Limited Partnership (5) First Lien - Term Loan 8/1/2030  9.60% S + 4.25%   5.35%  173   171   174   0.3%
Total Hotel, Gaming & Leisure                     171   174   0.3%
                                
Transportation: Consumer                               
Air Canada (5) First Lien - Term Loan 8/11/2028  9.14% S + 3.76%   5.38%  748   751   751   1.2%
Total Transportation: Consumer                     751   751   1.2%
                                
Services: Business                               
Nuvei Technologies Corp. (5) First Lien - Term Loan 12/19/2030  7.96% S + 2.50%   5.46%  1,056   1,048   1,057   1.7%
Total Services: Business                     1,048   1,057   1.7%
                               
Total Investments made in Canada                     2,965   2,984   4.8%
                                
Investments made in France                               
Healthcare & Pharmaceuticals                               
Curium BidCo S.a r.l. (5) First Lien - Term Loan 7/31/2029  9.85% S + 4.50%   5.35%  249   246   249   0.4%
Total Healthcare & Pharmaceuticals                     246   249   0.4%
                                
Total Investments made in France                     246   249   0.4%

25

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2023

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate (2)		  Basis
Point
Spread
Above
Index (2)		  Interest
Rate
Floor /
Base
Rate (2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Investments made in Germany Construction & Building                               
Minimax Viking GmbH (5) First Lien - Term Loan 7/31/2028  8.22% S + 2.86%   5.36%  498   496   500   0.8%
Total Construction & Building                     496   500   0.8%
                                
High Tech Industries                               
Mosel Bidco SE First Lien - Term Loan 9/16/2030  10.10% S + 4.75%   5.35%  211   209   212   0.3%
Total High Tech Industries                     209   212   0.3%
                                
Investments made in Germany                     705   712   1.1%
                                
Investments made in Ireland                               
Aerospace & Defense                               
Setanta Aircraft Leasing DAC (5) First Lien - Term Loan 11/5/2028  7.61% S + 2.26%   5.35%  1,500   1,496   1,506   2.4%
Total Aerospace & Defense                     1,496   1,506   2.4%
                                
Hotel, Gaming & Leisure                               
Flutter Entertainment plc (5) First Lien - Term Loan 11/25/2030  7.70% S + 2.35%   5.35%  739   737   742   1.2%
Total Hotel, Gaming & Leisure                     737   742   1.2%
                                
Services: Consumer                               
Cimpress plc (5) First Lien - Term Loan 5/17/2028  8.97% S + 3.61%   5.36%  975   968   976   1.6%
Total Services: Consumer                     968   976   1.6%
                                
Transportation: Consumer                               
Delos Aircraft Designated Activity Company First Lien - Term Loan 10/31/2027  7.35% S + 2.00%   5.35%  500   500   503   0.8%
Total Transportation: Consumer                     500   503   0.8%
                                
Total Investments made in Ireland                     3,701   3,727   6.0%
                                
Investments made in Luxembourg                               
Containers, Packaging & Glass                               
Mar Bidco S.a r.l. (5) First Lien - Term Loan 7/7/2028  9.51% S + 4.20%   5.31%  14   14   13   0.0%
Total Containers, Packaging & Glass                     14   13   0.0%
                                
Telecommunications                               
Venga Finance S.a r.l. (5) First Lien - Term Loan 6/28/2029  10.40% S + 5.01%   5.39%  988   963   984   1.6%
Total Telecommunications                     963   984   1.6%
                                
Total Investments made in Luxembourg                     977   997   1.6%

26

STEELE CREEK CAPITAL CORPORATION

Consolidated Schedule of Investments

December 31, 2023

(in thousands, except per share data)

Description (1) Investment
Type		 Maturity Interest
Rate (2)		  Basis
Point
Spread
Above
Index (2)		  Interest
Rate
Floor /
Base
Rate (2)		  Principal
/Shares		  Amortized
Cost		  Fair
Value		  % of Net
Assets(3)		 
Investments made in the Netherlands Chemicals, Plastics, & Rubber                               
Nouryon Finance B.V. (5) First Lien - Term Loan 4/3/2028  9.47% S + 4.10%   5.37%  866        855   870   1.4%
Total Chemicals, Plastics, & Rubber                     855   870   1.4%
                                
Retail                               
Peer Holding III B.V. (5) First Lien - Term Loan 10/28/2030  8.60% S + 3.25%   5.35%  528   524   530   0.9%
Total Retail                     524   530   0.9%
                                
Total Investments made in the Netherlands                     1,379   1,400   2.3%
                                
Investments made in Puerto Rico                               
Services: Business                               
Evertec Group, LLC First Lien - Term Loan 10/30/2030  8.86% S + 3.50%   5.36%  475   468   477   0.8%
Total Services: Business                     468   477   0.8%
                                
Total Investments made in Puerto Rico                     468   477   0.8%
                                
Investments made in the United Kingdom                               
Chemicals, Plastics, & Rubber                               
Ineos US Finance LLC (5) First Lien - Term Loan 2/18/2030  8.96% S + 3.60%   5.36%  204   202   204   0.3%
Ineos Quattro Holdings UK Limited (5) First Lien - Term Loan 3/14/2030  9.21% S + 3.85%   5.36%  118   117   117   0.2%
Total Chemicals, Plastics, & Rubber                     319   321   0.5%
                                
Total Investments made in the United Kingdom                     319   321   0.5%
                                
Total Non-controlled/Non-Affiliated Investments                    $142,333  $138,533   224.0%

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

(2)The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”) which reset monthly or quarterly. For each such investment, the Fund has provided the spread over LIBOR and the current contractual interest rate in effect at June 30, 2023. As of June 30, 2023, rates for 1M L, 3M L, 6M L, and 12M L are 5.22%, 5.55%, 5.76%, and 6.04% respectively. Due to uncertainties with LIBOR, investments are starting to transition from LIBOR to Secured Overnight Financing Rate (“SOFR” or “S”). As of June 30, 2023, rates for 1M S, 3M S, 6M S, and 12M S are 5.14%, 5.27%, 5.39%, and 5.40% respectively.
(3)Inputs in the valuation of this investment included certain unobservable inputs that were significant to the valuation as a whole (See Note 4).

(4)Percentages are based on net assets of $53,766 as of June 30, 2023.

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


Steele Creek Capital Corporation

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest
Rate (2)		  Basis Point
Spread
Above
Index (2)		  Interest Rate
Floor / Base
Rate (2)		  Par Amount  Amortized Cost  Fair Value  % of Net
Assets (3)		 
Non-controlled/Non-Affiliated Investments -253.30% of Shareholder’s Equity (3)                         
Investments made in United States Companies                         
Aerospace & Defense                         
Amentum Government Services Holdings LLC First Lien - Term Loan 2/15/2029  8.76%  S + 4.00%   4.76%  862   858   842   1.7%
HDT Holdco, Inc. First Lien - Term Loan 7/8/2027  10.48%  L + 5.75%   4.73%  527   514   450   0.9%
MAG DS Corp. First Lien - Term Loan 4/1/2027  10.23%  L + 5.50%   4.73%  926   892   852   1.7%
Peraton Corp. First Lien - Term Loan 2/1/2028  8.13%  L + 3.75%   4.38%  965   961   944   1.9%
Propulsion (BC) Midco SARL First Lien - Term Loan 9/14/2029  8.58%  S + 4.00%   4.58%  1,000   996   975   1.9%
Spirit Aerosystems, Inc. (fka Mid-Western Aircraft Systems, Inc and Onex Wind Finance LP.) First Lien - Term Loan 1/15/2027  8.82%  S + 4.50%   4.32%  499   484   494   0.9%
Vertex Aerospace Services Corp. First Lien - Term Loan 12/6/2028  7.88%  L + 3.50%   4.38%  993   988   977   1.9%
Total Aerospace & Defense                      5,693   5,534   10.9%
                                 
Automotive                                
Autokiniton US Holdings, Inc. First Lien - Term Loan 4/6/2028  8.79%  L + 4.50%   4.29%  1,480   1,472   1,437   2.8%
First Brands Group, LLC First Lien - Term Loan 3/30/2027  8.37%  S + 5.00%   3.37%  987   987   940   1.9%
Gates Global LLC First Lien - Term Loan 11/16/2029  7.82%  S + 3.50%   4.32%  499   484   496   1.0%
Holley Inc. First Lien - Term Loan 11/17/2028  8.42%  L + 3.75%   4.67%  930   931   813   1.6%
Total Automotive                      3,874   3,686   7.3%


Steele Creek Capital Corporation

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

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


Steele Creek Capital Corporation

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

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


Steele Creek Capital Corporation

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

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


Steele Creek Capital Corporation

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

Description (1) Investment Type Maturity Interest
Rate (2)		  Basis Point
Spread
Above
Index (2)		  Interest Rate
Floor / Base
Rate (2)		  Par Amount  Amortized Cost  Fair Value  % of Net
Assets (3)		 
CCRR Parent, Inc. First Lien - Term Loan 3/6/2028  8.14%  L + 3.75%   4.39%  983   978   937   1.9%
Confluent Health, LLC First Lien - Term Loan 11/30/2028  8.38%  L + 4.00%   4.38%  783   780   670   1.3%
Confluent Health, LLC (4) First Lien - Delayed Draw Loan 11/30/2028  8.38%  L + 4.00%   4.38%  170   96   72   0.1%
FC Compassus, LLC First Lien - Term Loan 12/31/2026  8.98%  L + 4.25%   4.73%  1,227   1,226   1,136   2.3%
Global Medical Response, Inc. First Lien - Term Loan 10/2/2025  8.42%  L + 4.25%   4.17%  490   484   346   0.7%
Golden State Buyer, Inc. First Lien - Term Loan 6/21/2026  8.92%  L + 4.75%   4.17%  948   942   906   1.8%
Help at Home, LLC First Lien - Delayed Draw Loan 10/29/2027  9.43%  S + 5.00%   4.43%  127   125   122   0.2%
Help at Home, LLC First Lien - Term Loan 10/29/2027  9.43%  S + 5.00%   4.43%  1,006   990   962   1.9%
Onex TSG Intermediate Corp. First Lien - Term Loan 2/28/2028  9.16%  L + 4.75%   4.41%  985   970   882   1.8%
PDS Holdco Inc. First Lien - Delayed Draw Loan 8/18/2028  9.23%  L + 4.50%   4.73%  138   138   127   0.3%
PDS Holdco Inc. First Lien - Term Loan 8/18/2028  9.23%  L + 4.50%   4.73%  1,347   1,342   1,239   2.5%
Revspring, Inc. (fka Dantom Systems, Inc.) First Lien - Term Loan 10/11/2025  8.73%  L + 4.00%   4.73%  1,006   1,000   974   1.8%
TTF Holdings, LLC First Lien - Term Loan 3/31/2028  8.44%  L + 4.00%   4.44%  635   631   628   1.1%
U.S. Anesthesia Partners, Inc. First Lien - Term Loan 10/2/2028  8.37%  L + 4.25%   4.12%  1,100   1,095   1,049   2.1%
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) First Lien - Term Loan 12/15/2027  9.63%  L + 5.25%   4.38%  990   984   896   1.8%
Zelis Cost Management Buyer, Inc. First Lien - Term Loan 9/30/2026  7.88%  L + 3.50%   4.38%  420   417   416   0.8%
Zotec Partners, LLC First Lien - Term Loan 2/14/2024  8.48%  L + 3.75%   4.73%  1,001   968   951   1.9%
Total Healthcare & Pharmaceuticals                      19,503   18,248   36.1%
                                 
High Tech Industries                                
Boxer Parent Company Inc. First Lien - Term Loan 10/2/2025  8.13%  L + 3.75%   4.38%  165   157   158   0.4%
Casa Systems, Inc. First Lien - Term Loan 12/20/2023  8.38%  L + 4.00%   4.38%  1,479   1,479   1,318   2.6%
CE Intermediate I, LLC First Lien - Term Loan 11/10/2028  8.59%  L + 4.00%   4.59%  993   984   948   1.9%
ConnectWise, LLC First Lien - Term Loan 9/29/2028  7.88%  L + 3.50%   4.38%  990   986   943   1.9%
Ingram Micro Inc. First Lien - Term Loan 6/30/2028  8.23%  L + 3.50%   4.73%  985   977   973   1.9%
LogMeIn, Inc. First Lien - Term Loan 8/31/2027  9.14%  L + 4.75%   4.39%  980   963   635   1.3%
Monotype Imaging Holdings Inc. First Lien - Term Loan 10/9/2026  9.68%  S + 5.00%   4.68%  724   721   713   1.4%
Quest Software US Holdings Inc. First Lien - Term Loan 2/1/2029  8.49%  S + 4.40%   4.09%  1,496   1,483   1,158   2.3%
Rocket Software, Inc. First Lien - Term Loan 11/28/2025  8.63%  L + 4.25%   4.38%  108   106   104   0.2%
Rocket Software, Inc. First Lien - Term Loan 11/28/2025  8.63%  L + 4.25%   4.38%  381   378   367   0.7%
Seattle SpinCo, Inc. First Lien - Term Loan 2/26/2027  8.42%  S + 4.10%   4.32%  1,203   1,193   1,203   2.4%
VeriFone Systems, Inc. First Lien - Term Loan 8/20/2025  8.36%  L + 4.00%   4.36%  1,384   1,372   1,276   2.5%
Vision Solutions, Inc. (Precisely Software Incorporated) First Lien - Term Loan 4/24/2028  8.36%  L + 4.00%   4.36%  986   984   820   1.6%
Watlow Electric Manufacturing Company First Lien - Term Loan 3/2/2028  8.15%  S + 3.75%   4.40%  344   343   332   0.7%
Total High Tech Industries                      12,126   10,948   21.8%


Steele Creek Capital Corporation

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

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


Steele Creek Capital Corporation

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

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


Steele Creek Capital Corporation

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

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


Steele Creek Capital Corporation

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

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


Steele Creek Capital Corporation

Consolidated Schedule of Investments

December 31, 2022

(in thousands, except per share data)

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

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

(2)The majority of the investments bear interest at a rate that may be determined by reference to Secured Overnight Financing Rate (“SOFR” or “S”), however, a small percentage of loans are still transitioning from London Interbank Offered Rate (“LIBOR” or “L”) which. Both indices reset monthly or quarterly. For each such investment, the Fund has provided the spread over LIBORSOFR and the current contractual interest rate in effect at December 31, 2022.2023. As of December 31, 2022, rates for 1M L, 3M L, 6M L, and 12M L are 4.39%, 4.77%, 5.14%, and 5.48% respectively. Due to uncertainties with LIBOR, investments are starting to transition from LIBOR to Secured Overnight Financing Rate (“SOFR” or “S”). As of December 31, 2022,2023, rates for 1M S, 3M S, 6M S, and 12M S are 4.36%5.35%, 4.59%5.33%, 4.78,5.16%, and 4.87%4.77% respectively. As of December 31, 2023, rates for 1M L, 3M L, and 6M L are 5.47%, 5.59%, and 5.59% respectively.

(3)Percentages are based on net assets of $50,375 thousand$61,858 as of December 31, 2022.2023.

(4)OfInputs in the entire $170 thousand commitmentvaluation of this investment included certain unobservable inputs that were significant to Confluent Health, LLC, $74 thousand was unfundedthe valuation as of December 31, 2022.a whole (see Note 4)

(5)Investment oris a portionnon-qualifying asset for RIC reporting purposes, non-qualifying assets represent 17.2% of the investment was on non-accrual status as of December 31, 2022.total assets.

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

 


27

 

 

Steele Creek Capital Corporation

Notes to the Consolidated Financial Statements

(unaudited)

(in thousands, except share and per share data)

1. ORGANIZATION

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

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

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

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

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

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting - The consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company and its consolidated subsidiaries. The Company is an investment company following accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services-Investment Companies. The consolidated financial statements reflect all adjustments and reclassifications that, in the opinion of management, are necessary for the fair presentation of the results of operations and financial condition as of and for the periods presented. All significant intercompany balances and transactions have been eliminated. Financial statements are prepared in accordance with GAAP for financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6 or 10 of Regulation S-X. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial statements for the period presented, have been included. These unaudited consolidated financial statements should be read in conjunction with the audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 20222023 filed with the Securities and Exchange Commission (“SEC”).

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


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

28

 

Investment Income - For debt investments, we record interest income on the accrual basis to the extent that such amounts are expected to be collected. Where applicable, OID and purchased discounts and premiums are accreted into interest income using the effective interest method. Loan origination fees are deferred and accreted into interest income using the effective interest method. We record prepayment premiums on loans and other investments as interest income when such amounts are received. We stop accruing interest on investments when it is determined that interest is no longer collectible. For the three and six months ended June 30,March 31, 2024 and 2023, there waswere two loans and one loan inon non-accrual status, that was no longer held at quarter end. For the three and six months ended June 30, 2022, there were no loans in non-accrual status.respectively.

 

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

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

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

Cash - The Company maintains its cash in a bank account, which, at times, may exceed federally insured limits. As of June 30, 2023,March 31, 2024, and December 31, 2022,2023, our cash balance exceeded federally insured limits. The Investment Advisor continuously monitors the performance of the bank where the account is held in order to manage any risk associated with such account.

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

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

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

Investment Classification - As required by the 1940 Act, investments are classified by level of control. “Controlled Investments” are defined as investments in portfolio companies that we are deemed to control, as defined in the 1940 Act. “Affiliated Investments” are investments in those companies that are affiliated companies, as defined in the 1940 Act, other than Controlled Investments. “Non-Controlled/Non-Affiliated Investments” are those that are neither Controlled Investments nor Affiliated Investments. Generally, under the 1940 Act, we are deemed to control a company in which we have invested if we own more than 25% of the voting securities of such company. We are deemed to be an affiliatedaffiliate of a company if we own 5% or more of the voting securities of such company. As of June 30, 2023March 31, 2024 and December 31, 2022,2023, all of our investments were Non-Controlled/Non-Affiliated investments.


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

29

 

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

Transfers of investments between different levels ofin the fair value hierarchy are recorded at the end of the period. For the three and six months ended June 30,March 31, 2024 there were two term loans investments that transferred from level 3 to level 2 at quarter end. The transfer between levels was made due to availability of broker quotes and increased trading volume for the three months ended March 31, 2024. For the three months ended March 31, 2023 and June 30, 2022 there were no transfers between levels.

Income Taxes -– For the three and six months ended June 30,March 31, 2024 and 2023, and June 30, 2022, we have complied with the requirements of Subchapter M of the Code and expect to be treated as a RIC for federal income tax purposes. In this regard, we account for income taxes using the asset and liability method prescribed by ASC Topic 740 – Income Taxes (“ASC Topic 740”). Under this method, income taxes are provided for amounts currently payable and for amounts deferred as tax assets and liabilities based on differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. Based upon our qualification and election to be treated as a RIC for federal income tax purposes, we typically do not incur any material federal income taxes. However, we may choose to retain a portion of our calendar year income, which may result in the imposition of an excise tax.

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

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

The 2020 to 20222023 tax years for the Company are not yet closed and remain subject to examination by U.S. Federal, state and local tax authorities.

Recent Accounting Pronouncements

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


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

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

3. AGREEMENTS AND RELATED PARTY TRANSACTIONS

Investment Advisory Agreement

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

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

On August 11, 2023, the Board approved the renewal of the Investment Advisory Agreement which automatically renews for successive one-year periods each September 17th; provided that such continuance is specifically approved at least annually by the vote of the Board or by the vote of a majority of the outstanding voting securities of the Company and the vote of a majority of the Independent Directors, in accordance with the requirements of the 1940 Act. 

Base Management Fee

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

Gross and net management fees for the three and six months ended June 30, 2023March 31, 2024 were $375$455 thousand and $747$349 thousand, respectively. NetThe Investment Advisor elected to waive a portion of the management fee and charged management fees on investments rather than gross assets.

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

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


Incentive Fee

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

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

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

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

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

For the three months ended June 30, 2023,March 31, 2024, the Investment Advisor earned a gross income incentive fee of $56 thousand and did not earn an income incentive fee ora capital incentive fee. For the sixthree months ended June 30,March 31, 2023, the Investment Advisor earned a gross income incentive fee of $76 thousand and did not earn a capital incentive fee.

For the three and six months ended June 30, 2022, the Company did not earn an incentive fee. For the six months ended June 30, 2022, the company returned $110 thousand of accrued incentive fees. This reversal was necessary due to the company’s performance in the first quarter of 2022.


Fee Waivers

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

For the three and six months ended June 30,March 31, 2024 and 2023, and June 30, 2022, the Board agreed upon a fee waiver to reduce the basis for the quarterly management fee from gross assets to investments. For the three and six months ended June 30,March 31, 2024 and 2023 the Investment Advisor waived $53$106 thousand and $105$52 thousand respectively. For the three and six months ended June 30, 2022 the Company waived $89 thousand and $224 thousand,of management fees, respectively. This fee waiver will be re-evaluated annually.

The Company’s performance for the three months ended June 30,March 31, 2024 and 2023, did not produceproduced sufficient realized income sufficient to meet the 6% distribution payment to investors and charge a full management fee. Therefore, the Company waived an additional $322 thousand of management fees for the three and six months ended June 30, 2023. The Company’s performance for the three and six months ended June 30, 2022 did not produce realized income sufficient to charge a full management fee. Therefore, the Company waived an additional $182 thousand and $257 thousand of management fees for the three and six months ended June 30, 2022, respectively.fee on investments.

Administration Agreement

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

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

On August 11, 2023, the Board approved the renewal of the Administration Agreement which automatically renews for successive one-year periods each September 17th; provided that such continuance is specifically approved at least annually by the vote of the Board or by the vote of a majority of the outstanding voting securities of the Company and the vote of a majority of the members of the Company’s Board who are not parties to this Agreement or “interested persons” (as such term defined in Section 2(a)(19) of the Investment Company Act) of any such party, in accordance with the Investment Company Act.


Related Party Transactions

As of June 30, 2023,March 31, 2024, affiliates owned approximately 42%38% of the Company representing approximately $22,593$22,989 thousand of the Company’s net assets. During the year ended December 31, 2022 an affiliate of the Company contributed $250 thousand of cash in exchange for equity in the Company. As of December 31, 2022,2023, affiliates owned approximately 43%38% of the Company representing approximately $21,458$23,340 thousand of the Company’s net assets. 

Separate from the contributions made above, theThe Company may, from time to time, purchase investments from, or sell investments to affiliates of our Investment Advisor at fair value on the trade date. For the three and six months ended June 30,March 31, 2024 and 2023 and June 30, 2022 there were no purchases of investments from or sales of investments to affiliates of our Investment Advisor.

For the three and six months ended June 30,March 31, 2024 and 2023, and June 30, 2022, the Company incurred $20 thousand and $40 thousand in directors’ fees expense, respectively.expense.

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

4. INVESTMENTS

Fair Value Measurements

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

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

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

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


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

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

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

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

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

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

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

The following fair value hierarchy table sets forth our investments by level as of June 30, 2023:March 31, 2024:

 June 30, 2023  March 31, 2024 
 Total  Level 1  Level 2  Level 3  Total  Level 1  Level 2  Level 3 
Term Loans $127,270  $         -  $127,104  $166  $137,774  $  -  $137,590  $184 
Collateralized Loan Obligations  1,458   -   1,458   - 
Delayed Draw Loan  242   -   242   -   209   -   209   - 
Equity  311   -   -   311   153   -   153   - 
Collateralized Loan Obligations  2,540   -   2,540   - 
Total Investments $129,281  $-  $128,804  $477  $140,676  $-  $140,492  $184 


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

 December 31, 2022  December 31, 2023 
 Total  Level 1  Level 2  Level 3  Total  Level 1  Level 2  Level 3 
Term Loans $126,370  $        -  $126,370  $-  $135,640  $   -  $134,191  $1,449 
Collateralized Loan Obligations  -   -   -   - 
Delayed Draw Loan  1,249   -   1,249   -   211   -   211   - 
Equity  -   -   -   -   177   -   153   24 
Collateralized Loan Obligations  2,505   -   2,505   - 
Total Investments $127,619  $-  $127,619  $-  $138,533  $-  $137,060  $1,473 

Unobservable inputs used in the fair value measurement of Level 3 investments as of June 30, 2023,March 31, 2024, included the following:

Type Fair Value  Valuation Technique Unobservable Input Range  Weighted Average 
Term Loans  $166  EV Debt/EBITDA EBITDA multiple  0.64x  1.19x  0.92x
Equity  311  EV Market Multiple Analysis EBITDA multiple  3.36x  3.91x  3.64x
Total $477                 

   Fair  Valuation Unobservable  Range       Weighted 
Type  Value  Technique Input  Minimum   Maximum   Average 
Term Loans  184  Discounted Cash Flows Market Comps  0%  100%   14.97% 
Total $184                 

Certain fair value measurements may employ more than one valuation technique, with each valuation technique receiving a relative weight between 0% and 100%. Generally, a change in an unobservable input may result in a change to the value of an investment as follows:

InputImpact to value if input increasesImpact to value if input decreases
EBITDA MultipleMarket CompsIncreaseDecrease
Projected Cash FlowIncreaseDecrease

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Changes in investments categorized as Level 3 for the three and six months ended June 30, 2023March 31, 2024 were as follows:

 Three months ended
June 30, 2023		  Three months ended March 31, 2024 
 Term Loans Equity Total Investments   Term Loans   Equity   Total Investments 
Beginning Balance $-  $-  $-  $1,449  $24  $1,473 
Net realized gain (loss)  -   -   -   -   -   - 
Net unrealized gain (loss)  -   -   -   -   (24)  (24)
Transfers (1)  (1,265)  -   (1,265)
Acquisitions  166   311   477   -   -   - 
Ending Balance $166  $311  $477  $184  $-  $184 

  Six months ended
June 30, 2023		 
  Term Loans  Equity  Total Investments 
Beginning Balance $-  $-  $    - 
Net realized gain (loss)  -   -   - 
Net unrealized gain (loss)  -   -   - 
Acquisitions  166   311   477 
Ending Balance $166  $311  $477 
(1)Per ASC 820, leveling for each investment is conducted at each quarter end. Transfers between levels are made in accordance with the Company’s accounting policy.

5. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30,March 31, 2024 and 2023:

  Three months
ended
June 30,
2023		  Six months
ended
June 30,
2023		 
Numerator - net earnings (loss) $2,341  $4,812 
Denominator - weighted average shares  5,673   5,683 
Net earnings (loss)  per share $0.41  $0.85 

  Three months
ended
March 31,
2024		  Three months
ended
March 31,
2023		 
Numerator - net earnings (loss) $305  $2,471 
Denominator - weighted average shares  6,344   5,692 
Net earnings (loss) per share $0.05  $0.43 


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

  Three months
ended
June 30,
2022		  Six months
ended
June 30,
2022		 
Numerator - net earnings (loss) $(6,615) $(7,081)
Denominator - weighted average shares  5,157   4,980 
Net earnings (loss) per share $(1.28) $(1.42)

6. NET ASSETS

The Company has been actively fundraising since its inception. The table below summarizes the capital the Company has raised (returned) and the shares issued (tendered) to investors during the sixthree months ended June 30, 2023.March 31, 2024.

Date Closed Capital
Raised
(in thousands)		  Shares
Issued		 
Balance at December 31, 2023 $66,290   6,370,722 
January 2, 2024  (524)  (53,915)
February 1, 2024  44   4,480 
March 1, 2024  669   69,303 
Balance at March 31, 2024 $66,479   6,390,590 

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Date Closed Capital
Raised
(in thousands)		  Shares
Issued		 
Balance at December 31, 2022 $59,241   5,643,073 
January 3, 2023  344   38,579 
February 1, 2023  50   5,300 
March 1, 2023  221   23,458 
Balance at March 31, 2023 $59,856   5,710,410 
April 3, 2023  (727)  (79,287)
May 1, 2023  297   31,900 
June 1, 2023  520   57,211 
Balance at June 30, 2023 $59,946   5,720,234 

 

The table below summarizes the capital the Company has raised (returned) and the shares issued (tendered) to investors during the sixthree months ended June 30, 2022.March 31, 2023.

 

Date Closed Capital
Raised
(in thousands)		  Shares
Issued		 
Balance at December 31, 2021 $45,555   4,311,321 
January 7, 2022  4,395   401,369 
January 21, 2022  675   61,059 
February 4, 2022  725   65,809 
February 18, 2022  100   9,299 
March 4, 2022  374  ��34,875 
March 18, 2022  839   80,506 
Balance at March 31, 2022 $52,663   4,964,238 
April 1, 2022  769   72,225 
April 18, 2022  347   32,246 
May 6, 2022  724   68,479 
May 20, 2022  861   87,990 
June 3, 2022  234   23,769 
June 17, 2022  247   25,801 
Balance at June 30, 2022 $55,845   5,274,748 
Date Closed Capital
Raised
(in thousands)		  Shares
Issued		 
Balance at December 31, 2022 $59,241   5,643,073 
January 3, 2023  344   38,579 
February 1, 2023  50   5,300 
March 1, 2023  221   23,458 
Balance at March 31, 2023 $59,856   5,710,410 

 

During the three and six months ended June 30, 2023,March 31, 2024, the Company issued 123,823 and 191,16073,783 shares with an aggregate value of $1,136$713 thousand and $1,751 thousand, respectively.repurchased 53,915 shares with an aggregate tender price of $524 thousand. During the three and six months ended June 30,March 31, 2023, 113,999the Company issued 67,337 shares with an aggregate value of $1,046 thousand were tendered and accepted by the Company.$615 thousand. During the three and six months ended June 30, 2022, the Company issued 310,510 and 963,427 shares with an aggregate value of $3,182 thousand and $10,290 thousand, respectively. During the three and six months ended June 30, 2022,March 31, 2023, no shares were tendered.

 

As of June 30, 2023,March 31, 2024, and December 31, 20222023 the Company had 5,720,2346,390,590 and 5,643,0736,370,722 shares of common stock, $0.001 par value per share, outstanding, respectively. 

 


7. CREDIT FACILITY

 

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

 

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

 

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

  

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

 

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

 

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

On July 10, 2023, the Company amended the Credit Agreement between Steele Creek Capital Funding I, LLC, BNP Paribas, and the Company as dated October 13, 2020 and as previously amended. This amendment contained certain conforming changes that are not material.

 

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

 

As of June 30, 2023March 31, 2024 and December 31, 2022,2023, there was $78,450 thousand$83,136 and $83,150$86,316 thousand outstanding, respectively, and $16,550$11,864 thousand and $11,850$8,684 thousand available, respectively, to be drawn under the BNP Credit Facility. As of June 30, 2023March 31, 2024 and December 31, 2022,2023, the BNP Credit Facility had a fair value of $78,450$83,136 thousand and $83,150$86,316 thousand, respectively, and a weighted average interest rate of 6.45%6.88% and 3.17%6.59%, respectively. The fair value of the BNP Credit Facility approximatesis determined in accordance with ASC 820, which defines fair value becausein terms of the interest rates adjustprice that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market interest rates (Level 3 input).conditions and is measured with Level 2 inputs. As of June 30, 2023March 31, 2024 and December 31, 2022,2023, Funding I was in compliance with all covenants of the BNP Credit Facility.

 

For the three and six months ended June 30,March 31, 2024 and 2023, we incurred interest and debt financing expense of $1,334$1,485 thousand and $2,636$1,302 thousand, respectively. The average debt outstanding for the three and six months ended June 30,March 31, 2024 and 2023 was $79,907$83,453 thousand and $81,403$82,917 thousand, respectively.

For the three and six months ended June 30, 2022, we incurred interest and debt financing expense of $499 thousand and $844 thousand, respectively. The average debt outstanding for the three and six months ended June 30, 2022 was $82,683 thousand and $79,494 thousand, respectively. 


  

8. COMMITMENTS AND CONTINGENCIES

 

Commitments to extend credit include loan proceeds we are obligated to advance, such as delayed draws. Commitments generally have fixed expiration dates or other termination clauses. Unrealized gains or losses associated with unfunded commitments are recorded in the consolidated financial statements and reflected as an adjustment to the fair value of the related security in the Consolidated Schedule of Investments. The par amount of the unfunded commitments is not recognized by the Company until the commitment becomes funded. As of June 30,March 31, 2024 and December 31, 2023, the Company had no unfunded commitments. As of December 31, 2022, the Company had unfunded commitments of $74 thousand.

 

In the ordinary course of business, we may be a party to certain legal proceedings, including actions brought against us and others with respect to investment transactions. The outcomes of any such legal proceedings are uncertain and, as a result of these proceedings, the values of the investments to which they relate could decrease. We were not subject to any litigation against us as of June 30, 2023.March 31, 2024. The debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and neither the Members nor any other person or entity shall be obligated personally for any such debt, obligation or liability of the Company.

 

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9. FINANCIAL HIGHLIGHTS

 

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

 

 Six Months
Ended
June 30,
2023		  Six Months
Ended
June 30,
2022		  Six Months
Ended
June 30,
2021		  Three months
ended
March 31,
2024		  Three months
ended
March 31,
2023		  Three months
ended
March 31,
2022		  Three months
ended
March 31,
2021		 
Per share data:                
Net asset value at beginning of period $8.93  $10.90  $10.76  $9.71  $8.93  $10.90  $10.76 
Net investment income (loss) (1)  0.49   0.29   0.06 
Net realized gain (loss) (1)  (0.25)  0.03   0.46 
Net change in unrealized appreciation (depreciation) (1)  0.61   (1.74)  0.02 
Net increase in net assets resulting from operations (1)  0.85   (1.42)  0.54 
Net investment income (1)  0.19   0.21   0.14   0.02 
Net realized gain (1)  0.00   (0.07)  0.02   0.28 
Net change in unrealized (depreciation) (1)  (0.15)  0.29   (0.26)  - 
Net (decrease) increase in net assets resulting from operations (1)  0.04   0.43   (0.10)  0.30 
Stockholder distributions from income (2)  (0.38)  (0.33)  (0.33)  (0.19)  (0.19)  (0.17)  (0.16)
Issuance of common shares  -   -   -   0.01 
Other (3)  -   0.06   0.06   -   0.01   0.01   0.02 
Net asset value at end of period $9.40  $9.21  $11.03  $9.56  $9.18  $10.64  $10.93 
                            
Net assets at end of period $53,766  $48,587  $41,708  $61,119  $52,394  $52,835  $29,571 
Shares outstanding at end of period  5,720,234   5,274,748   3,782,214   6,390,590   5,710,410   4,964,238   2,706,393 
Total return (2)  9.70%  (12.90)%  5.62%  0.47%  4.96%  (0.88)%  3.06%
                            
Ratio/Supplemental data:                            
Ratio of net expenses excluding waivers to average net assets (4)  15.84%  9.64%  11.64%
Ratio of net expenses including waivers to average net assets (4)  15.00%  8.67%  10.24%
Ratio of net expenses excluding waivers and reversals to average net assets (4)  15.07%  15.76%  8.71%  12.00%
Ratio of net expenses including waivers and reversals to average net assets (4)  14.90%  15.64%  8.29%  11.37%
Ratio of net investment income to average net assets (4)  10.01%  4.69%  0.74%  7.74%  9.75%  3.67%  1.27%
Portfolio turnover (5)  67.9%  71.0%  324.9%  63.8%  39.0%  42.6%  183.9%

 

(1)The per share data was derived by using the weighted average shares outstanding during the period.

 

(2)Total return is calculated as the change in net asset value (“NAV”) per share during the period, plus distributions per share, if any, divided by the beginning NAV per share. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at the quarter end NAV per share preceding the distribution. Return calculations are not annualized.

 

(3)Includes the impact of different amounts used in calculating per share data as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of a period end or transaction date.

 

(4)Ratios are annualized.

 

(5)Portfolio turnover rate is calculated using the lesser of year-to-date sales or year-to-date purchases over the average of the invested assets at fair value for the periods reported. Ratio is not annualized.

 


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10. SUBSEQUENT EVENTS

 

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

 

On July 3, 2023,April 1, 2024, the Company issued and sold 11,1445,910 shares of its common stock to certain investors for an aggregate offering price of $105$57 thousand. The sale of its common stock was made pursuant to subscription agreements between the Company and the investors, and the issuance of the common stock was exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder.

 

On July 10, 2023, the Company amended the Credit Agreement between Steele Creek Capital Funding I, LLC, BNP Paribas, and the Company as dated October 13, 2020 and as previously amended. This amendment contained certain conforming changes that are not material.

On July 19, 2023,April 17, 2024, the Company paid approximately $149$571 thousand for the approximately 15,84459,713 shares tendered and accepted at the close of the June 2023March 2024 tender offer.

 

On AugustMay 1, 2023,2024, the Company issued and sold 25,55518,127 shares of its common stock to certain investors for an aggregate offering price of $247 thousand.$175 thousand. The sale of its common stock was made pursuant to subscription agreements between the Company and the investors, and the issuance of the common stock was exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder.

 


40

 

 

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

 

The following discussion and analysis should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form 10-Q. Except as otherwise specified, references to “we,” “us,” “our,” or the “Company” refer to MSC Capital LLC prior to the Conversion (as defined herein), and Steele Creek Capital Corporation on and after the Conversion.

 

Forward-Looking Statements

 

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

 

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

●our future operating results;

  

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

 

●the impact of investments that we expect to make;

 

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

 

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

 

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

 

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

 

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

 

●the adequacy of our cash resources and working capital;

 

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

 

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

 

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

 

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

 

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

 

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

  

●our contractual arrangements and relationships with third parties;

 

●our expected financings and investments;

 

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

 

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

 


41

 

 

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

 

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

 

Overview

 

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

 

Our investment objective is to generate high current income by investing primarily in fixed income instruments, including broadly syndicated bank loans, structured products, mezzanine financings and senior secured bonds. We provide moderate liquidity to our shareholders by offering a quarterly share repurchase program. As of June 30, 2023,March 31, 2024, approximately 130192 thousand shares have been tendered through the share repurchase program. Broadly syndicated loans are generally more liquid than directly originated investments and may provide more attractive financing terms than less liquid assets. Mezzanine financings are generally unrated or below investment grade rated investments that have greater credit and liquidity risk than more highly rated debt obligations. Moreover, mezzanine financings are generally unsecured and subordinate to other obligations of the obligor and are subject to many of the same risks as those associated with high-yield debt securities.

 

Revenues

 

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

 


42

 

 

Expenses

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

●interest expense and other costs associated with our indebtedness;

 

●transfer agent and custodial fees;

 

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

 

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

 

●U.S. federal, state and local taxes;

 

●Independent Directors’ fees and expenses;

 

●brokerage commissions and markups;

 

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

 

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

 

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

 

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

  

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

43

 

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

 

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


 

Compensation Paid to the Dealer Manager and Participating Financial Intermediaries

 

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

 

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

 

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

 

Current Market Conditions

 

TheAbating recession fears led to robust inflows into the leveraged loan market postedduring the first quarter of 2024 from strong returns in Q2 driven byCLO issuance and positive loan mutual fund flows. Borrowers took advantage of the favorable technical factors and higher base rates. New issuebackdrop with opportunistic repricing/refinancing activity, which represented most of the loan volumes remained depressed with activity largely consisting of refinancing and extensions to address near-term maturities. While outpacing supply, demand side activity was also muted with increasingly challenging CLO arbitrage and continued retail outflows to a lesser extent.issuance volume in the quarter. The Credit Suisse Leveraged Loan Indexindex ended the quarter up 3.12%2.52% with an average bid price of 93.55,96.01, up from 92.6795.32 at the end of Q1. Loan downgrades by the rating agencies continued to outpace upgrades and the market default rate continues to push higher.Q4. The trailing twelve-month default rate at the end of Q2 stood at 2.9%, upincreased to 3.8% from 2.2% at the end of3.4% in Q1 according to Fitch Ratings. Ratings and the ratio of rating agency downgrades to upgrades for the loan market edged higher in the quarter to 1.6:1 vs. 1.3:1.

44

 

Portfolio and Investment Activity

 

As of June 30, 2023,March 31, 2024, our portfolio had a fair market value of approximately $129,281$140,676 thousand, a cost basis of approximately $135,284$145,405 thousand and was comprised of leveraged loans and equity securities,investments, measured at fair value. Our loan portfolio consisted of 169209 investments in 2426 industries and in 59 domiciled countries. The following table depicts a summary of the portfolio as of June 30, 2023March 31, 2024 (in thousands):

 

  Investments 
Cost $135,284 
Cumulative Net Unrealized Depreciation  (6,003)
Fair Value $129,281 
Yield at Cost  9.45%


  Investments 
Cost $145,405 
Cumulative Net Unrealized Depreciation  (4,729)
Fair Value $140,676 
Yield at Cost  9.14%

 

As of December 31, 2022,2023, our portfolio had a fair market value of approximately $127,619$138,533 thousand, a cost basis of approximately $137,084$142,333 thousand and was comprised of leveraged loans,investments, measured at fair value. Our loan portfolio consisted of 164205 investments in 2526 industries and in 58 domiciled countries. The following table depicts a summary of the portfolio as of December 31, 20222023 (in thousands):

 

 Investments  Investments 
Cost $137,084  $142,333 
Cumulative Net Unrealized Depreciation  (9,465)  (3,800)
Fair Value $127,619  $138,533 
Yield at Cost  8.65%  9.46%

  

As of June 30, 2023, 100%March 31, 2024, 100.0% of the term loan investments in the portfolio bore interest at floating rates, with 88.2%62.6% of our loan portfolio (at fair value) and 88.4%62.2% of our loan portfolio (at cost) having an interest rate floor above 0.0%. Recent interest rate increaseincreases announced in the United States have driven the LIBOR and SOFR base rates above the floors in effect as of quarter end. Base rates on 100%100.0% of the loans in the portfolio exceed the stated floors.

 

As of December 31, 2022,2023, 100.0% of the term loan investments in the portfolio bore interest at floating rates, with 83.9%72.4% of our loan portfolio (at fair value) and 83.4% of our loan portfolio (at cost) having an interest rate floor above 0.0%. Recent interest rate increaseincreases announced in the United States have driven the LIBOR and SOFR base rates above the floors in effect as of quarter end.year-end. Base rates on 100%100.0% of the loans in the portfolio exceed the stated floors.

 

The portfolio is actively managed, with a turnover ratio of 67.9%63.8% and 71.0%39.0% for the sixthree months ended June 30,March 31, 2024 and 2023, and June 30, 2022, respectively. Our loan portfolio rotation was reflective of the active management style, which seeks to optimize the portfolio based on current market conditions by rotating into positions that have better relative values. The annualized average yield as of June 30,March 31, 2024 and 2023 and June 30, 2022 on the investment was 9.89%9.45% and 6.60%9.62%, respectively. The following tables depict the portfolio activity (in thousands):.

 

  Three months
ended
June 30,
2023		  Six months
ended
June 30,
2023		 
Fair Value, Beginning $128,455  $127,619 
Purchases  37,351   87,282 
Sales and Repayments  (37,608)  (88,088)
Payment in-kind interest income  200   218 
Non-cash income accrual  89   208 
Net realized gains (losses)  (1,001)  (1,419)
Net unrealized appreciation (depreciation)  1,795   3,461 
Fair Value, Ending $129,281  $129,281 

 Three months
ended
June 30,
2022		  Six months
ended
June 30,
2022		  Three months
ended
March 31,
2024		  Three months
ended
March 31,
2023		 
Fair Value, Beginning $128,455  $106,997  $138,533  $127,619 
Purchases  47,156   119,872   92,086   49,931 
Sales and Repayments  (36,705)  (86,862)  (89,108)  (50,480)
Payment in-kind income  4   18 
Non-cash income accrual  46   104   77   119 
Net realized gains (losses)  59   166   13   (418)
Net unrealized (depreciation) appreciation  (7,430)  (8,696)  (929)  1,666 
Fair Value, Ending $131,581  $131,581  $140,676  $128,455 

 


45

 

 

  Three months
ended
June 30,
2023		  Six months
ended
June 30,
2023		 
Investments, Beginning  167   164 
Purchases (new)  31   73 
Complete exit  (29)  (68)
Investments, Ending  169   169 

 Three months
ended
June 30,
2022		  Six months
ended
June 30,
2022		  Three months
ended
March 31,
2024		  Three months
ended
March 31,
2023		 
Investments, Beginning  151   130   205   164 
Purchases (new)  35   80   79   42 
Complete exit  (26)  (50)  (75)  (39)
Investments, Ending  160   160   209   167 

 

The portfolio was diversified across both issuers and industries with the average investment exposure in our portfolio of $765$673 thousand at fair value, or 0.6%0.5% of the total portfolio, as of the sixthree months ended June 30, 2023.March 31, 2024. The following table shows the portfolio composition by industry grouping at fair value as a percentage of the total portfolio as of June 30, 2023:March 31, 2024: 

 

Industry As of
June 30,March 31,
20232024		 
Healthcare & Pharmaceuticals14.0%
Services: Business12.6%
Banking, Finance, Insurance & Real Estate  12.612.0%
HealthcareConstruction & PharmaceuticalsBuilding  12.6%
Services: Business11.06.9%
High Tech Industries  7.55.4%
Telecommunications  6.94.8%
Aerospace & Defense  5.4%
Capital Equipment4.7%
Retail4.74.4%
Chemicals, Plastics & Rubber  4.4%
ConstructionHotel, Gaming & BuildingLeisure  3.34.3%
Transportation: Consumer3.6%
Automotive  3.13.0%
Transportation: Cargo  3.12.9%
Energy: Oil & GasElectricity  3.02.4%
Hotel, Gaming & LeisureRetail  2.9%
Transportation: Consumer2.9%
Consumer Goods: Durable2.92.4%
Containers, Packaging & Glass  2.3%
Energy: ElectricityOil & Gas  1.42.1%
Services: Consumer2.0%
Consumer Goods: Durable1.9%
Utilities: Electric1.8%
Capital Equipment1.6%
Media: Broadcasting & Subscription1.5%
Beverages, Food & Tobacco1.2%
Media: Advertising, Printing & Publishing  1.4%
Services: Consumer1.2%
Media: Broadcasting & Subscription0.8%
Consumer Goods: Non-Durable  0.80.6%
Environmental Industries0.4%
Forest Products & Paper  0.7%
Utilities: Electric0.40.3%
   100.0%

 


46

 

 

The portfolio was diversified across both issuers and industries with the average investment exposure in our loan portfolio of $778$676 thousand at fair value, or 0.6%0.5% of the total portfolio, as of the year ended December 31, 2022.2023. The following table shows the loan portfolio composition by industry grouping at fair value as a percentage of the total portfolioloans as of December 31, 2022:2023:

 

Industry As of
December 31,
20222023		 
Healthcare & PharmaceuticalsServices: Business  14.313.4%
Banking, Finance, Insurance & Real Estate  12.412.0%
Services: BusinessHealthcare & Pharmaceuticals  11.811.6%
High Tech Industries  8.6%
Telecommunications7.37.2%
Aerospace & Defense  5.15.6%
Telecommunications4.9%
Chemicals, Plastics, & Rubber4.5%
Hotel, Gaming & Leisure  4.34.2%
Transportation: Consumer3.8%
Construction & Building3.7%
Consumer Goods: Durable3.2%
Automotive3.1%
Energy: Oil & Gas2.7%
Transportation: Cargo2.7%
Energy: Electricity2.5%
Retail2.4%
Capital Equipment  3.82.3%
Transportation: CargoServices: Consumer  3.72.3%
Containers, Packaging & Glass  3.52.1%
RetailMedia: Broadcasting & Subscription  2.91.5%
AutomotiveBeverages, Food & Tobacco  2.9%
Energy: Oil & Gas2.6%
Transportation: Consumer2.6%
Construction & Building2.4%
Chemicals, Plastics, & Rubber2.2%
Consumer goods: Durable2.11.3%
Media: Advertising, Printing & Publishing  1.5%
Energy: Electricity1.41.2%
Consumer goods:Goods: Non-durable  1.40.8%
Services: ConsumerUtilities: Electric  1.1%
Media: Broadcasting & Subscription0.90.5%
Forest Products & Paper  0.70.3%
Utilities: ElectricEnvironmental Industries  0.4%
Utilities: Oil & Gas0.10.2%
   100.0%

47

 

Results of Operations

 

Operating results were as follows (in thousands):

 

 Three months
ended
June 30,
2023		  Six months
ended
June 30,
2023		  Three months
ended
March 31,
2024		  Three months
ended
March 31,
2023		 
Investment income:          
Interest income $3,255  $6,472  $3,449  $3,199 
Payment in-kind interest income  4   18 
Other income  8   - 
Total investment income  3,255   6,472   3,461   3,217 
                
Expenses:                
Management fees  375   747   455   372 
Interest and debt financing expenses  1,334   2,636   1,485   1,302 
Professional fees  95   190   99   95 
Incentive fees  -   76   56   76 
Administration expenses  57   115   60   58 
Directors’ fees  20   40   20   20 
Custody fees  11   23   12   12 
Other general and administrative expenses  191   310   159   119 
Total expenses  2,083   4,137   2,346   2,054 
Less: management fees waived  (375)  (427)  (106)  (52)
Less: incentive fee waived  -   (8)  -   (8)
Net expenses  1,708   3,702   2,240   1,994 
Net investment income  1,547   2,770   1,221   1,223 
Net realized (loss) gain on investments  (1,001)  (1,419)  13   (418)
Net unrealized appreciation (depreciation) on investments  1,795   3,461   (929)  1,666 
Net realized and unrealized gain (loss) on investments  794   2,042   (916)  1,248 
Net increase (decrease) in net assets $2,341  $4,812  $305  $2,471 

 


48

 

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

 

Investment Income

 

Investment income is recorded on the accrual basis to the extent that such amounts are expected to be collected. Where applicable, OID and purchased discounts and premiums are accreted into interest income using the effective interest method. Loan origination fees are deferred and accreted into interest income using the effective interest method. We record prepayment premiums on loans and other investments as interest income when such amounts are received. Investment income for the three and six months ended June 30,March 31, 2024 and 2023 was approximately $3,255$3,461 thousand and $6,472 thousand, respectively. Investment income for the three and six months ended June 30, 2022 was approximately $1,805 thousand and $3,276$3,217 thousand, respectively.

 

Total Expenses

 

Total expenses for the three and six months ended June 30,March 31, 2024 and 2023 of approximately $2,083$2,346 thousand and $4,137$2,054 thousand, respectively, include management, incentive, audit and tax preparation fees, interest and debt financing costs, directors’ fees, administration expenses and other general and administrative expenses.respectively. Total expenses for the three and six months ended June 30, 2022 of approximately $1,320 thousand and $2,308 thousand, respectively, include management, incentive, audit and tax preparation fees, organizational costs, offering costs, interest and debt financing costs, directors’ fees, administration expenses and other general and administrative expenses. Expenses are recognized on an accrual basis.

 


For the three and six months ended June 30, 2023,March 31, 2024, the Investment Advisor waived $375 thousand and $427$106 thousand of management fees respectively. For the three and six months ended June 30, 2023, the Investment Advisor waived zero and $8 thousand ofdid not waive any income incentive fees, respectively.fees. The actions taken by Moelis Asset the Investment Advisor effectively reduced total expenses incurred by the Company for the three and six months ended June 30, 2023March 31, 2024 of approximately $2,083$2,346 thousand to approximately $1,708 thousand and approximately $4,137 thousand to approximately $3,702 thousand, respectively.$2,240 thousand.

 

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

 

Net Realized Gain or Lossand Losses on Investments

 

Sales and repayments of investments during the three and six months ended June 30, 2023March 31, 2024 totaled approximately $37,608$89,108 thousand, and $88,088 thousand, respectively, resulting in net realized lossgain of approximately $1,001 thousand and $1,419 thousand, respectively.$13 thousand.

 

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

 

Net Unrealized Appreciation or Depreciation on Investments

 

Unrealized depreciation for the three months ended March 31, 2024 totaled approximately $929 thousand. Unrealized appreciation during the three and six months ended June 30,March 31, 2023 totaled approximately $1,795 thousand and $3,461 thousand, respectively. Unrealized depreciation during the three and six months ended June 30, 2022 totaled approximately $7,430 thousand and $8,696 thousand, respectively.$1,666 thousand. This activity reflects the changes in fair value of investments as determined in compliance with the Investment Advisor’s valuation policy. 

 

Taxes

 

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

49

 

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

 

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

 

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

 


Financial Condition, Liquidity and Capital Resources

 

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

 

Capital Contributions

 

For the three and six months ended June 30, 2023,March 31, 2024, the Company issued and sold 123,823 and 191,16073,783 shares of Common Stock with a par value of $0.001 per share for an aggregate offering price of $1,136 thousand and $1,751 thousand, respectively.$713 thousand. For the three and six months ended June 30, 2022,March 31, 2023, the Company issued and sold 310,510 shares and 963,42767,337 shares of Common Stock with a par value of $0.001 per share for an aggregate offering price of $3,182 thousand and $10,290 thousand, respectively. $615 thousand. 

The sale of its common stock was made pursuant to subscription agreements between the Company and the investors, and the issuance of the common stock was exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder.

 

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

 

We provide moderate liquidity to our shareholders by offering a quarterly share repurchase program. During the three and six months ended June 30, 2023, 113,999March 31, 2024, approximately 53,915 shares with an aggregate value of $1,046 thousand were tendered and accepted by the Company.tendered. During the three and six months ended June 30, 2022,March 31, 2023, no shares were tendered.

 

As of August 11, 2023, the Company issued 5,741,088May 10, 2024, 6,354,912 shares of the Company’s Common Stock.Stock was issued and outstanding.

 

Borrowings

 

October 13, 2020, we entered into a two-year secured revolving Credit Agreement (the “Credit Agreement”) with BNP Paribas (“BNP”) as lender and administrative agent (the “BNP Credit Facility”) providing a maximum of $45.0 million$45,000 thousand (“Maximum Facility Amount”) to Steele Creek Capital Funding I, LLC (“Funding I”). The Company created a wholly owned subsidiary, Funding I, which it will use to hold the Company’s investments, and a first priority continuing security interest in, to and under each investment, all underlying investments and underlying assets has been granted to BNP to be used as collateral for the BNP Credit Facility. During the BNP Credit Facility’s revolving period, it bears interest at LIBOR plus 175 basis points. We believe that our capital resources will provide us with the flexibility to take advantage of market opportunities when they arise. For the three and six months ended June 30, 2023, we had an average of $79,907 thousand and $81,403 thousand outstanding under the BNP Credit Facility, respectively. For the three and six months ended June 30, 2022, we had an average of $82,683 thousand and $79,494 thousand outstanding under the BNP Credit Facility, respectively.

50

 

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

 

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


 

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

 

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

 

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

 

On July 10, 2023, the Company amended the Credit Agreement between Steele Creek Capital Funding I, LLC, BNP Paribas, and the Company as dated October 13, 2020 and as previously amended. This amendment contained certain conforming changes that are not material.

For the three months ended March 31, 2024 and 2023, we had an average of $83,453 thousand and $82,917 thousand outstanding under the BNP Credit Facility, respectively.

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

 

Distribution Policy

 

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

 

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

 

51

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


 

Asset Coverage

 

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

 

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

 

As of June 30, 2023March 31, 2024 and December 31, 2022,2023, the Company had total senior securities of $78,450$83,136 thousand and $83,150 thousand,$86,316, respectively, consisting of borrowings under the Credit Facility, and had asset coverage ratios of 168.5%173.5% and 160.6%171.7%, respectively. For a discussion of certain risks associated with the reduction of the required minimum asset coverage ratio applicable to the Company, see “Risk Factors — Risks Related to Our Business and Structure — The SBCAA allows us to incur additional leverage, which may increase the risk of investing with us.”

 

Critical Accounting Policies

 

Valuation Procedures

 

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

 


52

 

 

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

 

ASC Topic 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. ASC Topic 820 also provides guidance regarding a fair value hierarchy, which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level of information used in the valuation. In accordance with ASC Topic 820, these inputs are summarized in the three levels listed below.

 

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

 

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

 

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

 

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

 

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

 

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

   

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

 

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

 


53

 

 

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

 

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

 

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

 

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

 

Management and Incentive Fees

 

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

  

Expenses

 

For the three and six months ended June 30,March 31, 2024 and 2023, the Company incurred expenses of approximately $2,083$2,346 thousand and $4,137$2,054 thousand, respectively. For the three and six months ended June 30, 2022, the Company incurred expenses of approximately $1,320 thousand and $2,308 thousand, respectively. TheseThe expenses are primarily related to management fees, incentive fees, interest and debt financing expenses, organization expenses, professional fees, directors’ fees, offering costs and administration and custodian fees. Expenses are recognized on an accrual basis.

  

Federal Income Taxes

 

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

 

Investment Income

 

For debt investments, we record interest income on the accrual basis to the extent that such amounts are expected to be collected. OID and purchased discounts and premiums are accreted/amortized into interest income using the effective interest method, where applicable. Loan origination fees are deferred and accreted into interest income using the effective interest method. We record prepayment premiums on loans and other investments as interest income when such amounts are received. We stop accruing interest on investments when it is determined that interest is no longer collectible. As of June 30,March 31, 2024 and 2023 and June 30, 2022 we had notwo loans and one loan on non-accrual status.status, respectively.

 


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

 

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

 

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

 

Contractual Obligations

 

Commitments to extend credit include loan proceeds we are obligated to advance, such as delayed draws. Commitments generally have fixed expiration dates or other termination clauses. The par amount of the unfunded commitments is not recognized by the Company until the commitment becomes funded. As of June 30, 2023March 31, 2024 and December 31, 2022,2023, the Company had no unfunded commitments of zero and $74 thousand, respectively.commitments. 

 

Off-Balance Sheet Arrangements

 

Other than contractual commitments and other legal contingencies incurred in the normal course of our business, we do not expect to have any off-balance sheet financings or liabilities. These instruments include commitments to extend credit and fund equity capital and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of June 30, 2023March 31, 2024 and December 31, 2022,2023, we had a total of zero and $74 thousand, respectfully inno outstanding commitments comprised of investments with commitments to fund revolving loans that had not been fully drawn or term loans with additional commitments not yet funded.  

 

Related Party Transactions

 

As of June 30, 2023,March 31, 2024, affiliates owned approximately 42%38% of the Company representing approximately $22,593$22,989 thousand of the Company’s net assets. During the year ended December 31, 2022 an affiliate of the Company contributed $250 thousand of cash in exchange for equity in the Company. As of December 31, 2022,2023, affiliates owned approximately 43%38% of the Company representing approximately $21,458$23,340 thousand of the Company’s net assets.

 

Separate from the contributions made above, theThe Company may, from time to time, purchase investments from, or sell investments to affiliates of our Investment Advisor at fair value on the trade date. For the three and six months ended June 30,March 31, 2024 and 2023, and June 30, 2022, there were no purchases of investments from or sales of investments to affiliates of our Investment Advisor.

 

For the three and six months ended June 30,March 31, 2024 and 2023, and June 30, 2022, the Company incurred $20 thousand and $40 thousand in directors’ fees expense, respectively.expense.

 

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

  

Organizational and Offering Expenses

 

For the three and six months ended June 30,March 31, 2024 and 2023 and June 30, 2022 the Company did not incur organizational or offering expenses. Organizational costs are expensed as incurred and offering cost are amortized over a 12 monthtwelve-month period.

 

Investment Advisory Agreement

 

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

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On August 11, 2023, the Board approved the renewal of the Investment Advisory Agreement which automatically renews for successive one-year periods each September 17th; provided that such continuance is specifically approved at least annually by the vote of the Board or by the vote of a majority of the outstanding voting securities of the Company and the vote of a majority of the Independent Directors, in accordance with the requirements of the 1940 Act.Agreement.


 

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

 

The base management fee is calculated at a maximum annual rate of 1.0% of the average of the weighted average (based on the number of shares outstanding each day in the quarter) of our gross assets (including uninvested cash and cash equivalents) at the end of each of the two most recently completed calendar quarters. On August 13, 2021, the Board agreed to make investments rather than gross assets the basis for their fee to be more in line with the waivers implemented for management fees. Net management fees for the three and six months ended June 30,March 31, 2024 and 2023 and were zero$349 thousand and $320 thousand, respectively. The Company elected to waive a portion of the management fee and charged management fees on investments rather than gross assets. The Investment Advisor has agreed to a 6.0% priority dividend to shareholders before receiving a fee for the services it provides to the Company. 

   

Administration Agreement

 

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

 

On August 11, 2023, the Board approved the renewal of the Administration Agreement which automatically renews for successive one-year periods each September 17th; provided that such continuance is specifically approved at least annually by the vote of the Board or by the vote of a majority of the outstanding voting securities of the Company and the vote of a majority of the members of the Company’s Board who are not parties to this Agreement or “interested persons” (as such term defined in Section 2(a)(19) of the Investment Company Act) of any such party, in accordance with the Investment Company Act.Act.

 

Recent Developments

 

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

 

On July 3, 2023,April 1, 2024, the Company issued and sold 11,1445,910 shares of its common stock to certain investors for an aggregate offering price of $105$57 thousand. The sale of its common stock was made pursuant to subscription agreements between the Company and the investors, and the issuance of the common stock was exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder.

 

On July 10, 2023, the Company amended the Credit Agreement between Steele Creek Capital Funding I, LLC, BNP Paribas, and the Company as dated October 13, 2020 and as previously amended. This amendment contained certain conforming changes that are not material.

On July 19, 2023,April 17, 2024, the Company paid approximately $149$571 thousand for the approximately 15,84459,713 shares tendered and accepted at the close of the June 2023March 2024 tender offer.

 

On AugustMay 1, 2023,2024, the Company issued and sold 25,55518,127 shares of its common stock to certain investors for an aggregate offering price of $247$175 thousand. The sale of its common stock was made pursuant to subscription agreements between the Company and the investors, and the issuance of the common stock was exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder.

 


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Item 3. Quantitative and Qualitative Disclosures Aboutabout Market Risk.Risks

 

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

 

As of June 30, 2023, 100%March 31, 2024, 100.0% of our loan portfolio bore interest at floating rates with 65.7%63.4% (at fair value) having an interest rate floor between 0.50% and 1.00%. The floating rate loans are usually based on a LIBORSOFR (or an alternative risk-free floating interest rate index) rate and typically have durations ranging from one to six months, after which they reset to current market interest rates. Floating rate investments subject to a floor generally reset to the current market index after one to nine months if the index exceeds the floor. For positions with an interest rate floor, we do not benefit from increases in interest rates until such rates exceed the floor and thereafter benefit from market rates above any such floor. Recent interest rate increases announced in the United States have driven the LIBOR and SOFR rates above the floors in effect as of quarter end. Base rates on 100% of the portfolio exceeds the stated floors.

 

Assuming that the consolidated statement of assets and liabilities as of June 30, 2023March 31, 2024 was to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates:

 

 As of June 30, 2023  As of March 31, 2024 
Basis Point Changes Interest
Income		  Interest
Expense		  Net
Income		  Interest
Income		  Interest
Expense		  Net
Income		 
Up 300 basis points $4,089  $(2,397) $1,692  $4,395  $(2,504) $1,891 
Up 200 basis points  2,726   (1,598)  1,128   2,930   (1,669)  1,261 
Up 100 basis points  1,363   (799)  564   1,465   (835)  630 
Down 100 basis points  (1,363)  799   564   (1,451)  835   (616)
Down 200 basis points  (2,726)  1,598   1,128   (2,902)  1,669   (1,233)
Down 300 basis points  (4,089)  2,397   1,692   (4,353)  2,504   (1,849)

 

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

 

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Item 4. Controls and Procedures.Procedures

 

Evaluation of Disclosure Controls and Procedures

 

As of June 30, 2023,March 31, 2024, we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.

 

Management Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act.

In connection with the preparation of this quarterly report, our management, including our Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of our internal control over financial reporting as of March 31, 2024. In making that assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013 framework). Based on its assessment, our management concluded that, as of March 31, 2024, our internal control over financial reporting was effective.

Changes in Internal Control over Financial Reporting

 

There have been no changes in our “internal control over financial reporting” (as defined in Rule 13a 15(f) of the Exchange Act) that occurred during our quarterthe period ended June 30, 2023March 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.  


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PART II—OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

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

 

Item 1A. Risk Factors.

 

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 20222023 (the “Annual Report on Form 10-K”), which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K are not the only risks we face. Additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. Other than the risk factors below, during the sixthree months ended June 30, 2023,March 31, 2024, there have been no material changes from the risk factors set forth in our Annual Report on Form 10-K.

 

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

 

None.

 

Item 3. Default Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

Item 5. Other Information.

 

None.During the fiscal quarter ended March 31, 2024, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any non-Rule 10b5-1 trading arrangement. 

 


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Item 6. Exhibits, Financial Statement SchedulesSchedules.

 

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

 

*Filed herewith

 


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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 Steele Creek Capital Corporation
  
Date: August 11, 2023May 10, 2024/s/ Glenn Duffy
 Name: Glenn Duffy
 Title: Chief Executive Officer,
Chief Investment Officer, and President
(Principal Executive Officer)
  
Date: August 11, 2023May 10, 2024/s/ Douglas Applegate Jr.
 Name:  Douglas Applegate Jr.
 Title:Chief Financial Officer
(Principal Financial and Accounting Officer)

 

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