UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

Form 10-Q



(Mark One)

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

For the Quarterly Period Ended ~~December~~March 31, ~~2017~~2019
or

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

For the transition period from to

Commission file number: 1-35040

MEDLEY CAPITAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)



Delaware		27-4576073
(State or Other Jurisdiction of		(I.R.S. Employer
Incorporation or Organization)		Identification No.)

280 Park Avenue, 6th Floor East, New York, NY 10017		10017
(Address of Principal Executive Offices)		(Zip Code)

(212) 759-0777

(Registrant’s Telephone Number, Including Area Code)

_____________________________________________________________________________________________________

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 ý No ¨

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ 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 ~~and post~~ 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 ý Non-accelerated filer ¨ ~~(Do not check if a smaller reporting company)~~

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 Securities Exchange Act of 1934). Yes ¨ No ý

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



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	MCC	The New York Stock Exchange
Common Stock, par value $0.001 per share	MCC	The Tel Aviv Stock Exchange
6.500% Notes due 2021	MCX	The New York Stock Exchange
6.125% Notes due 2023	MCV	The New York Stock Exchange
5.550% Notes due 2024	MCC.B1	The Tel Aviv Stock Exchange

The Registrant had 54,474,211 shares of common stock, $0.001 par value, outstanding as of ~~February 5, 2018.~~

May 10, 2019.

MEDLEY CAPITAL CORPORATION

TABLE OF CONTENTS



Part I.	Financial Information

Item I.1.	Financial Statements

	Consolidated Statements of Assets and Liabilities as of ~~December~~March 31, ~~2017~~2019 (unaudited) and September 30, ~~2017~~2018	F-1

	Consolidated Statements of Operations for the three and six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016~~2018 (unaudited)	F-2

	Consolidated Statements of Changes in Net Assets for the ~~three~~six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016~~2018 (unaudited)	F-3

	Consolidated Statements of Cash Flows for the ~~three~~six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016~~2018 (unaudited)	~~F-4~~F-5

	Consolidated Schedules of Investments as of ~~December~~March 31, ~~2017~~2019 (unaudited) and September 30, ~~2017~~2018	~~F-5~~F-6

	Notes to Consolidated Financial Statements (unaudited)	F-21

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	1

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	1519

Item 4.	Controls and Procedures	1620

Part II.	Other Information

Item 1.	Legal Proceedings	1721

Item 1A.	Risk Factors	1723

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	1723

Item 3.	Defaults Upon Senior Securities	1823

Item 4.	Mine Safety Disclosures	1823

Item 5.	Other Information	1823

Item 6.	Exhibits	1823

SIGNATURES		27

Medley Capital Corporation

Consolidated Statements of Assets and Liabilities


	December 31, 2017			September 30, 2017			March 31, 2019			September 30, 2018
	(unaudited)						(unaudited)
ASSETS
Investments at fair value
Non-controlled/non-affiliated investments (amortized cost of $649,624,352 and $625,108,198, respectively)	$	565,541,395		$	575,495,698
Affiliated investments (amortized cost of $92,464,353 and $91,026,729, respectively)	95,792,257			90,071,365
Controlled investments (amortized cost of $210,068,394 and $197,918,352, respectively)	174,569,385			171,423,836
Non-controlled/non-affiliated investments (amortized cost of $366,734,912 and $428,717,777, respectively)							$	351,330,429		$	393,149,374
Affiliated investments (amortized cost of $125,595,735 and $102,546,973, respectively)							118,216,013			100,640,804
Controlled investments (amortized cost of $187,816,169 and $233,421,693, respectively)							142,953,703			161,639,736
Total investments at fair value	835,903,037			836,990,899			612,500,145			655,429,914
Cash and cash equivalents	50,008,401			108,571,958			73,407,222			75,665,981
Interest receivable	9,474,622			9,371,048			5,779,241			6,377,076
Other assets	3,488,194			3,321,822			3,135,225			3,420,442
Receivable for dispositions and investments sold							512,103			160,257
Fees receivable	754,578			765,756			199,449			187,276
Deferred offering costs	339,172			307,015			—			354,754
Receivable for dispositions and investments sold	55,969			231,895
Total assets	$	900,023,973		$	959,560,393		$	695,533,385		$	741,595,700

LIABILITIES
Revolving credit facility payable (net of debt issuance costs of $1,618,750 and $1,777,181, respectively)	$	45,381,250		$	66,222,819
Term loan payable (net of debt issuance costs of $952,656 and $1,045,895, respectively)	101,047,344			100,954,105
Notes payable (net of debt issuance costs of $3,871,214 and $4,122,533, respectively)	173,002,422			172,751,776
SBA debentures payable (net of debt issuance costs of $2,702,965 and $2,845,694, respectively)	147,297,035			147,154,306
Notes payable (net of debt issuance costs of $6,870,330 and $8,238,300, respectively)							$	265,156,464		$	276,909,028
SBA debentures payable (net of debt issuance costs of $1,881,346 and $2,095,329, respectively)							133,118,654			132,904,671
Accounts payable and accrued expenses							11,788,258			2,935,833
Management and incentive fees payable (see Note 6)	4,067,841			4,312,004			3,084,382			3,347,674
Interest and fees payable	5,063,062			3,759,891			3,008,064			3,280,018
Accounts payable and accrued expenses	1,981,890			1,863,546
Administrator expenses payable (see Note 6)	867,331			859,794			667,649			808,546
Deferred tax liability	821,927			911,936
Due to affiliate	377,231			81,347			276,197			39,051
Deferred revenue	315,028			259,552			112,741			192,152
Offering costs payable	32,157			—
Total liabilities	$	480,254,518		$	499,131,076		$	417,212,409		$	420,416,973

Guarantees and Commitments (see Note 8)

NET ASSETS
Common stock, par value $0.001 per share, 100,000,000 common shares authorized, 54,474,211 and 54,474,211 common shares issued and outstanding, respectively	$	54,474		$	54,474		$	54,474		$	54,474
Capital in excess of par value	705,046,098			705,046,098			698,586,770			698,586,770
Accumulated undistributed net investment income	7,991,654			9,528,367
Accumulated net realized gain/(loss) from investments	(176,684,365		)	(176,662,889		)
Net unrealized appreciation/(depreciation) on investments, net of deferred taxes	(116,638,406		)	(77,536,733		)
Total distributable earnings/(loss)							(420,320,268		)	(377,462,517		)
Total net assets	419,769,455			460,429,317			278,320,976			321,178,727
Total liabilities and net assets	$	900,023,973		$	959,560,393		$	695,533,385		$	741,595,700

NET ASSET VALUE PER SHARE	$	7.71		$	8.45		$	5.11		$	5.90

See accompanying notes to consolidated financial statements.

Medley Capital Corporation

Consolidated Statements of Operations


	For the three months ended December 31						For the three months ended March 31						For the six months ended March 31
	2017			2016			2019			2018			2019			2018
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
INVESTMENT INCOME:
INVESTMENT INCOME
Interest from investments
Non-controlled/non-affiliated investments:
Cash	$	13,090,352		$	18,520,378		$	7,509,634		$	10,966,668		$	15,587,237		$	24,057,020
Payment-in-kind	1,641,133			2,962,050			605,640			872,495			1,178,183			2,513,628
Affiliated investments:
Cash	577,309			166,750			459,966			490,765			1,211,717			1,068,074
Payment-in-kind	849,495			—			644,575			769,572			1,616,365			1,619,067
Controlled investments:
Cash	429,762			343,158			85,626			426,537			163,458			856,299
Payment-in-kind	718,518			1,971,560			760,525			815,135			1,788,857			1,533,653
Total interest income	17,306,569			23,963,896			10,065,966			14,341,172			21,545,817			31,647,741
Dividend income, net of provisional taxes ($0 and $0, respectively)	1,443,750			644,953
Dividend income (net of provisional taxes of $0 and $0, respectively)							1,991,527			2,172,610			4,091,527			3,616,360
Interest from cash and cash equivalents	31,769			23,412			211,215			25,794			372,529			57,563
Fee income (see Note 9)	1,848,760			1,423,804			318,160			495,508			778,837			2,344,268
Total investment income	20,630,848			26,056,065			12,586,868			17,035,084			26,788,710			37,665,932

EXPENSES:
EXPENSES
Base management fees (see Note 6)	4,067,841			4,514,615			3,084,382			3,775,882			6,269,526			7,843,723
Incentive fees (see Note 6)	—			895,675			—			—			—			—
Interest and financing expenses	6,759,199			7,773,971			5,898,689			7,470,017			11,907,805			14,229,216
Professional fees							10,156,703			555,865			11,357,280			1,141,532
General and administrative							2,880,717			671,784			3,484,866			1,429,039
Administrator expenses (see Note 6)	867,331			916,066			667,649			956,589			1,699,776			1,823,920
General and administrative	757,255			697,005
Professional Fees	585,667			651,111
Directors fees	147,180			169,784			376,625			251,315			668,850			398,495
Insurance	133,214			99,455			116,791			130,074			236,177			263,288
Expenses before management and incentive fee waivers	13,317,687			15,717,682			23,181,556			13,811,526			35,624,280			27,129,213
Management fee waiver (see Note 6)	—			(19,945		)	—			(380,000		)	—			(380,000		)
Incentive fee waiver (see Note 6)	—			(43,663		)	—			—			—			—
Total expenses net of management and incentive fee waivers	13,317,687			15,654,074			23,181,556			13,431,526			35,624,280			26,749,213
Net investment income before excise taxes	7,313,161			10,401,991			(10,594,688		)	3,603,558			(8,835,570		)	10,916,719
Excise tax expense	(134,000		)	(267,183		)	—			(23,922		)	—			(157,922		)
NET INVESTMENT INCOME	7,179,161			10,134,808			(10,594,688		)	3,579,636			(8,835,570		)	10,758,797

REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) from investments
Non-controlled/non-affiliated investments	(21,476		)	(6,298,431		)	(10,615,469		)	(23,330,652		)	(15,799,379		)	(23,352,128		)
Affiliated investments	—			—			—			—			—			—
Controlled investments	—			—			—			—			(51,538,556		)	—
Net realized gain/(loss) from investments	(21,476		)	(6,298,431		)	(10,615,469		)	(23,330,652		)	(67,337,935		)	(23,352,128		)
Net unrealized appreciation/(depreciation) on investments
Non-controlled/non-affiliated investments	(34,470,457		)	1,625,294			19,351,739			6,322,632			20,163,920			(28,147,825		)
Affiliated investments	4,283,268			—			(3,078,960		)	(4,928,871		)	(5,473,553		)	(645,603		)
Controlled investments	(9,004,493		)	863,902			(19,671,818		)	(9,454,224		)	26,919,491			(18,458,717		)
Net unrealized appreciation/(depreciation) on investments	(39,191,682		)	2,489,196			(3,399,039		)	(8,060,463		)	41,609,858			(47,252,145		)
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments	90,009			—			—			190,494			—			280,503
Net gain/(loss) on investments	(39,123,149		)	(3,809,235		)
Net loss on extinguishment of debt (see Note 5)							—			(1,157,636		)	(122,971		)	(1,157,636		)
Net realized and unrealized gain/(loss) on investments							(14,014,508		)	(32,358,257		)	(25,851,048		)	(71,481,406		)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(31,943,988	)	$	6,325,573		$	(24,609,196	)	$	(28,778,621	)	$	(34,686,618	)	$	(60,722,609	)

WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE	$	(0.59	)	$	0.12		$	(0.45	)	$	(0.53	)	$	(0.64	)	$	(1.11	)
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER COMMON SHARE	$	0.13		$	0.19		$	(0.19	)	$	0.07		$	(0.16	)	$	0.20
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (SEE NOTE 11)	54,474,211			54,474,211			54,474,211			54,474,211			54,474,211			54,474,211
DIVIDENDS DECLARED PER COMMON SHARE	$	0.16		$	0.22		$	0.05		$	0.16		$	0.15		$	0.32

See accompanying notes to consolidated financial statements.

Medley Capital Corporation

Consolidated Statements of Changes in Net Assets



	Common Stock					Total Distributable Earnings/(Loss)			Total Net Assets
	Shares	Par Amount		Capital in Excess of Par Value
	Shares	Par Amount		Capital in Excess of Par Value

Balance at December 31, 2017	54,474,211	$	54,474	$	705,046,098	$	(285,331,117	)	$	419,769,455

OPERATIONS
Net investment income	—	—		—		3,579,636			3,579,636
Net realized gain/(loss) from investments	—	—		—		(23,330,652		)	(23,330,652		)
Net unrealized appreciation/(depreciation) on investments	—	—		—		(8,060,463		)	(8,060,463		)
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments	—	—		—		190,494			190,494
Net loss on extinguishment of debt	—	—		—		(1,157,636		)	(1,157,636		)
SHAREHOLDER DISTRIBUTIONS
Distributions from earnings	—	—		—		(8,715,874		)	(8,715,874		)
COMMON SHARE TRANSACTIONS
Offering costs	—	—		—		—			—
Total increase/(decrease) in net assets	—	—		—		(37,494,495		)	(37,494,495		)

Balance at March 31, 2018	54,474,211	$	54,474	$	705,046,098	$	(322,825,612	)	$	382,274,960

Balance at December 31, 2018	54,474,211	$	54,474	$	698,586,770	$	(392,987,360	)	$	305,653,884

OPERATIONS
Net investment income	—	—		—		(10,594,688		)	(10,594,688		)
Net realized gain/(loss) from investments	—	—		—		(10,615,469		)	(10,615,469		)
Net unrealized appreciation/(depreciation) on investments	—	—		—		(3,399,039		)	(3,399,039		)
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments	—	—		—		—			—
Net loss on extinguishment of debt	—	—		—		—			—
SHAREHOLDER DISTRIBUTIONS
Distributions from earnings	—	—		—		(2,723,712		)	(2,723,712		)
COMMON SHARE TRANSACTIONS
Offering costs	—	—		—		—			—
Total increase/(decrease) in net assets	—	—		—		(27,332,908		)	(27,332,908		)

Balance at March 31, 2019	54,474,211	$	54,474	$	698,586,770	$	(420,320,268	)	$	278,320,976

See accompanying notes to consolidated financial statements.

Medley Capital Corporation

Consolidated Statements of Changes in Net Assets

(continued)

For the three months ended December 31
2017 2016
(unaudited) (unaudited)
OPERATIONS:

Net investment income $ 7,179,161
$ 10,134,808
Net realized gain/(loss) from investments (21,476 ) (6,298,431 )
Net unrealized appreciation/(depreciation) on investments (39,191,682 ) 2,489,196
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments 90,009
—
Net increase/(decrease) in net assets from operations (31,943,988 ) 6,325,573
SHAREHOLDER DISTRIBUTIONS:

Distributions from net investment income (8,715,874 ) (11,984,328 )
Net decrease in net assets from shareholder distributions (8,715,874 ) (11,984,328 )
Total increase/(decrease) in net assets (40,659,862 ) (5,658,755 )
Net assets at beginning of period 460,429,317

516,919,142
Net assets at end of period including accumulated undistributed net investment income of $7,991,654 and $8,962,242, respectively $ 419,769,455
$ 511,260,387

Net asset value per common share $ 7.71
$ 9.39
Common shares outstanding at end of period 54,474,211
54,474,211



	Common Stock					Total Distributable Earnings/(Loss)			Total Net Assets
	Shares	Par Amount		Capital in Excess of Par Value
	Shares	Par Amount		Capital in Excess of Par Value

Balance at September 30, 2017	54,474,211	$	54,474	$	705,046,098	$	(244,671,255	)	$	460,429,317

OPERATIONS
Net investment income	—	—		—		10,758,797			10,758,797
Net realized gain/(loss) from investments	—	—		—		(23,352,128		)	(23,352,128		)
Net unrealized appreciation/(depreciation) on investments	—	—		—		(47,252,145		)	(47,252,145		)
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments	—	—		—		280,503			280,503
Net loss on extinguishment of debt	—	—		—		(1,157,636		)	(1,157,636		)
SHAREHOLDER DISTRIBUTIONS
Distributions from earnings	—	—		—		(17,431,748		)	(17,431,748		)
COMMON SHARE TRANSACTIONS
Offering costs	—	—		—		—			—
Total increase/(decrease) in net assets	—	—		—		(78,154,357		)	(78,154,357		)

Balance at March 31, 2018	54,474,211	$	54,474	$	705,046,098	$	(322,825,612	)	$	382,274,960

Balance at September 30, 2018	54,474,211	$	54,474	$	698,586,770	$	(377,462,517	)	$	321,178,727

OPERATIONS
Net investment income	—	—		—		(8,835,570		)	(8,835,570		)
Net realized gain/(loss) from investments	—	—		—		(67,337,935		)	(67,337,935		)
Net unrealized appreciation/(depreciation) on investments	—	—		—		41,609,858			41,609,858
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments	—	—		—		—			—
Net loss on extinguishment of debt	—	—		—		(122,971		)	(122,971		)
SHAREHOLDER DISTRIBUTIONS
Distributions from earnings	—	—		—		(8,171,133		)	(8,171,133		)
COMMON SHARE TRANSACTIONS
Offering costs	—	—		—		—			—
Total increase/(decrease) in net assets	—	—		—		(42,857,751		)	(42,857,751		)

Balance at March 31, 2019	54,474,211	$	54,474	$	698,586,770	$	(420,320,268	)	$	278,320,976

See accompanying notes to consolidated financial statements.

Medley Capital Corporation

Consolidated Statements of Cash Flows


	For the three months ended December 31						For the six months ended March 31
	2017			2016			2019			2018
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Cash flows from operating activities
NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS	$	(31,943,988	)	$	6,325,573		$	(34,686,618	)	$	(60,722,609	)
ADJUSTMENTS TO RECONCILE NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES:
Investment increases due to payment-in-kind interest	(3,136,782		)	(4,823,083		)	(5,171,194		)	(4,493,565		)
Net amortization of premium/(discount) on investments	(239,606		)	(350,100		)	(224,124		)	(481,129		)
Amortization of debt issuance costs	645,044			997,329			1,352,147			1,874,923
Net realized (gain)/loss from investments	21,476			6,298,431			67,337,935			23,352,128
Net deferred income taxes	(90,009		)	—			—			(280,502		)
Net unrealized (appreciation)/depreciation on investments	39,191,682			(2,489,196		)	(41,609,858		)	47,252,145
Proceeds from sale and settlements of investments	47,978,251			40,117,661			75,033,854			127,510,828
Purchases, originations and participations	(82,727,159		)	(42,182,104		)	(52,436,844		)	(102,964,383		)
Net loss on extinguishment of debt							122,971			1,157,636
(Increase)/decrease in operating assets:
Interest receivable	(103,574		)	(2,024,597		)	597,835			(55,716		)
Other assets	(166,371		)	143,067			285,217			121,914
Receivable for dispositions and investments sold							(351,846		)	52,721
Fees receivable	11,178			764,524			(12,173		)	74,029
Receivable for dispositions and investments sold	175,926			133,631
Increase/(decrease) in operating liabilities:
Accounts payable and accrued expenses							8,852,425			(58,629		)
Management and incentive fees payable, net	(244,163		)	788,063			(263,292		)	(916,122		)
Interest and fees payable	1,303,171			2,317,959			(271,954		)	(1,035,245		)
Accounts payable and accrued expenses	118,344			(456,158		)
Administrator expenses payable	7,537			(74,170		)	(140,897		)	105,795
Due to affiliate	295,884			114,038			237,146			45,526
Deferred revenue	55,476			(59,740		)	(79,411		)	(8,970		)
NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES	(28,847,683		)	5,541,128			18,571,319			30,530,775

Cash flows from financing activities
Borrowings on debt	9,000,000			18,379,732			—			139,275,690
Paydowns on debt	(30,000,000		)	(14,000,000		)	(12,999,337		)	(189,000,000		)
Debt issuance costs paid	—			(285,408		)	(14,361		)	(6,472,459		)
Payments of cash dividends	(8,715,874		)	(11,984,328		)	(8,171,133		)	(17,431,748		)
Offering costs paid	—			(1,381		)	354,753			(44,594		)
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES	(29,715,874		)	(7,891,385		)	(20,830,078		)	(73,673,111		)

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	(58,563,557		)	(2,350,257		)	(2,258,759		)	(43,142,336		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	108,571,958			104,485,263			75,665,981			108,571,958
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	50,008,401		$	102,135,006		$	73,407,222		$	65,429,622

Supplemental Information:
Interest paid during the period	$	4,792,028		$	4,439,248		$	10,827,613		$	13,352,037
Supplemental non-cash information:
Payment-in-kind interest income	$	3,209,146		$	4,933,610		$	4,583,405		$	5,666,348
Net amortization of premium/(discount) on investments	$	239,606		$	350,100		$	224,124		$	481,129
Amortization of debt issuance costs	$	(645,044	)	$	(997,329	)	$	(1,352,147	)	$	(1,874,923	)
Non-cash purchase of investments	$	—		$	58,615,663		$	47,483		$	1,392,699
Non-cash sale of investments	$	—		$	58,615,663		$	—		$	1,392,699

See accompanying notes to consolidated financial statements.

Medley Capital Corporation

Consolidated Schedule of Investments

~~December~~March 31, ~~2017~~2019

(unaudited)


Company⁽¹⁾		Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾			Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾		Cost⁽³⁾		Fair Value		% of Net Assets⁽⁴⁾

Non-Controlled/Non-Affiliated Investments:	Non-Controlled/Non-Affiliated Investments:									Non-Controlled/Non-Affiliated Investments:

3SI Security Systems, Inc.		Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/16/2023	17,456,250	17,456,250	17,608,119	4.2	%		Services: Business	Senior Secured First Lien Term Loan (LIBOR + 5.75% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/16/2023	$	17,237,500	$	17,237,500	$	17,237,500	6.2	%
					17,456,250	17,456,250	17,608,119							17,237,500		17,237,500		17,237,500

Accupac, Inc.⁽⁷⁾		Containers, Packaging & Glass	Senior Secured First Lien Term Loan (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)^(13)(18)	9/14/2023	9,862,951	9,862,951	9,862,951	2.3	%		Containers, Packaging & Glass	Senior Secured First Lien Term Loan (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)^(13)(19)	9/14/2023	9,548,873		9,548,873		9,427,260		3.4	%
					9,862,951	9,862,951	9,862,951

Advanced Diagnostic Holdings, LLC		Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.875% LIBOR Floor)⁽¹⁴⁾	12/11/2020	14,582,109	14,582,109	14,582,109	3.5	%
					14,582,109	14,582,109	14,582,109							9,548,873		9,548,873		9,427,260

Alpine SG, LLC⁽⁷⁾		High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	11/16/2022	13,500,000	13,500,000	13,500,000	3.2	%		High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	11/16/2022	13,398,750		13,398,750		13,398,750		4.8	%
			Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)^(14)(22)	11/16/2022	4,642,857	4,642,857	4,642,857	1.1	%			Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	11/16/2022	6,617,630		6,617,630		6,617,630		2.4	%
			Revolving Credit Facility (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)^(14)(17)	11/16/2022	—	—	—	0.0	%			Revolving Credit Facility (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)^(14)(17)	11/16/2022	—		—		—		0.0	%
					18,142,857	18,142,857	18,142,857							20,016,380		20,016,380		20,016,380

American Dental Partners, Inc.		Healthcare & Pharmaceuticals	Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/25/2023	6,500,000	6,500,000	6,578,000	1.6	%		Healthcare & Pharmaceuticals	Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/25/2023	4,387,500		4,387,500		4,294,924		1.5	%
					6,500,000	6,500,000	6,578,000							4,387,500		4,387,500		4,294,924

Autosplice, Inc.		High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/30/2019	14,169,522	14,169,522	14,277,210	3.4	%		High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/17/2020	13,706,464		13,706,464		13,706,464		4.9	%
					14,169,522	14,169,522	14,277,210							13,706,464		13,706,464		13,706,464

Barry's Bootcamp Holdings, LLC⁽⁷⁾		Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/14/2022	7,628,570	7,628,570	7,628,570	1.8	%		Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/14/2022	7,628,570		7,628,570		7,554,700		2.7	%
			Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/14/2022	—	—	—	0.0	%			Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/14/2022	—		—		—		0.0	%
			Revolving Credit Facility (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)^(14)(17)	7/14/2022	—	—	—	0.0	%			Revolving Credit Facility (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)^(14)(17)	7/14/2022	3,740,000		3,740,000		3,703,040		1.3	%
					7,628,570	7,628,570	7,628,570							11,368,570		11,368,570		11,257,740

Be Green Packaging, LLC		Containers, Packaging & Glass	Equity - 417 Common Units		—	416,250	—	0.0	%		Containers, Packaging & Glass	Equity - 417 Common Units		—		416,250		—		0.0	%
					—	416,250	—							—		416,250		—

Black Angus Steakhouses, LLC⁽⁷⁾											Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	4/24/2020	7,392,857		7,392,857		7,367,171		2.6	%
												Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	4/24/2020	—		—		—		0.0	%
												Revolving Credit Facility (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)^(14)(17)	4/24/2020	580,357		580,357		580,357		0.2	%
														7,973,214		7,973,214		7,947,528

Company⁽¹⁾
Industry
Type of Investment⁽⁶⁾
Maturity
Par Amount⁽²⁾

Cost⁽³⁾
Fair Value
% of
Net Assets⁽⁴⁾

Black Angus Steakhouses, LLC⁽⁷⁾
Hotel, Gaming & Leisure
Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
4/24/2020 7,649,554
7,649,554
7,325,796
1.7 %

Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
4/24/2020 —
—
—
0.0 %

Revolving Credit Facility (LIBOR + 9.00% Cash, 1.00% LIBOR
Floor)^(14)(17)
4/24/2020 357,143
357,143
324,104
0.1 %
8,006,697
8,006,697
7,649,900

Brook & Whittle Holdings Corp.⁽⁷⁾
Containers, Packaging & Glass
Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
10/17/2023 1,330,274
1,330,274
1,330,274
0.3 %

Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)^(14)(17)
10/17/2023 —
—
—
0.0 %
1,330,274
1,330,274
1,330,274

Central States Dermatology Services, LLC⁽⁷⁾
Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
4/20/2022 1,084,519
1,084,519
1,084,519
0.2 %

Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)^(14)(18)
4/20/2022 209,355
209,355
209,355
0.0 %
1,293,874
1,293,874
1,293,874

Comfort Holding, LLC Consumer goods: Durable
Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾
2/3/2025 1,000,000
962,572
844,600
0.2 %
1,000,000
962,572
844,600

CP OPCO, LLC Services: Consumer
Senior Secured First Lien Term Loan B (ABR + 5.50% PIK, 4.50% ABR Floor)⁽¹⁰⁾
4/1/2019 1,274,828
1,210,237
338,467
0.1 %

Senior Secured First Lien Term Loan C (ABR + 8.50% PIK, 4.50% ABR Floor)⁽¹⁰⁾
4/1/2019 9,380,638
4,060,507
—
0.0 %

Preferred Facility (ABR + 7.00% PIK, 4.50% ABR Floor)⁽¹⁰⁾
4/1/2019 5,883,641
—
—
0.0 %
Revolving Credit Facility (ABR + 3.50% Cash, 4.50% ABR Floor) 4/1/2019 —
—
—
0.0 %
Equity - 232 Common Units —
—
—
0.0 %
16,539,107
5,270,744
338,467

CPI International, Inc. Aerospace & Defense
Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)⁽¹³⁾
7/26/2025 5,000,000
4,975,920
4,975,000
1.2 %
5,000,000
4,975,920
4,975,000

Crow Precision Components, LLC Aerospace & Defense
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
9/30/2019 13,190,000
13,190,000
13,190,000
3.1 %
Equity - 350 Common Units —
700,000
273,809
0.1 %
13,190,000
13,890,000
13,463,809

CT Technologies Intermediate Holdings, Inc.⁽¹²⁾
Healthcare & Pharmaceuticals
Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾
12/1/2022 7,500,000
7,500,000
7,540,500
1.8 %
7,500,000
7,500,000
7,540,500



Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾

Brook & Whittle Holding Corp.	Containers, Packaging & Glass	Senior Secured First Lien Term Loan (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	10/17/2024	1,313,645	1,313,645	1,313,645	0.5	%
		Senior Secured First Lien Incremental Term Loan (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	10/17/2024	4,634,401	4,634,401	4,634,401	1.7	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	10/17/2024	308,952	308,952	308,952	0.1	%
				6,256,998	6,256,998	6,256,998

Central States Dermatology Services, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹³⁾	4/20/2022	1,070,887	1,070,887	1,070,887	0.4	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹³⁾	4/20/2022	406,298	406,298	406,298	0.1	%
				1,477,185	1,477,185	1,477,185

CPI International, Inc.	Aerospace & Defense	Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)⁽¹³⁾	7/28/2025	3,010,025	2,997,331	2,919,724	1.0	%
				3,010,025	2,997,331	2,919,724

Crow Precision Components, LLC	Aerospace & Defense	Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/30/2019	12,590,000	12,590,000	12,590,000	4.5	%
		Equity - 350 Common Units		—	700,000	658,858	0.2	%
				12,590,000	13,290,000	13,248,858

CT Technologies Intermediate Holdings, Inc.⁽¹²⁾	Healthcare & Pharmaceuticals	Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	12/1/2022	7,500,000	7,500,000	6,126,000	2.2	%
				7,500,000	7,500,000	6,126,000

DataOnline Corp.⁽⁷⁾	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.75% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/31/2025	15,920,000	15,920,000	15,920,000	5.7	%
		Revolving Credit Facility (LIBOR + 5.75% Cash, 1.00% LIBOR Floor)^(14)(17)	7/31/2024	—	—	—	0.0	%
				15,920,000	15,920,000	15,920,000

Dream Finders Homes, LLC	Construction & Building	Senior Secured First Lien Term Loan B (10.00% Cash)	10/1/2019	2,105,944	2,105,944	2,105,944	0.8	%
		Preferred Equity (8.00% PIK)		4,022,521	4,022,521	4,022,521	1.4	%
				6,128,465	6,128,465	6,128,465

FKI Security Group, LLC⁽¹²⁾	Capital Equipment	Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	3/30/2020	11,093,750	11,093,750	10,885,188	3.9	%
				11,093,750	11,093,750	10,885,188

Footprint Acquisition, LLC	Services: Business	Preferred Equity (8.75% PIK)		6,975,702	6,975,702	6,975,702	2.5	%
		Equity - 150 Common Units		—	—	3,347,966	1.2	%
				6,975,702	6,975,702	10,323,668

Freedom Powersports, LLC	Automotive	Senior Secured First Lien Term Loan (LIBOR + 10.00% Cash, 1.50% LIBOR Floor)⁽¹⁴⁾	9/26/2019	10,190,000	10,190,000	10,190,000	3.7	%
				10,190,000	10,190,000	10,190,000

Friedrich Holdings, Inc.	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	2/7/2023	9,848,862	9,848,862	9,848,862	3.5	%
				9,848,862	9,848,862	9,848,862

Company⁽¹⁾
Industry
Type of Investment⁽⁶⁾
Maturity
Par Amount⁽²⁾

Cost⁽³⁾
Fair Value
% of
Net Assets⁽⁴⁾

DHISCO Electronic Distribution, Inc. Hotel, Gaming & Leisure
Senior Secured First Lien Term Loan A (LIBOR + 8.50% PIK, 1.50% LIBOR Floor)⁽¹⁴⁾
11/10/2019 4,107,239
4,107,239
4,107,239
1.0 %

Senior Secured First Lien Term Loan B (LIBOR + 11.00% PIK, 1.50% LIBOR Floor)^(10)(14)
11/10/2019 15,203,145
14,896,413
6,134,469
1.5 %

Senior Secured First Lien Term Loan C (LIBOR + 12.25% PIK, 1.50% LIBOR Floor)^(10)(14)
11/10/2019 13,200,369
11,600,575
—
0.0 %

Senior Secured First Lien Term Loan D (LIBOR + 13.25% PIK, 1.50% LIBOR Floor)^(10)(14)
11/10/2019 12,407,459
4,701,476
—
0.0 %
Equity - 1,230,769 Class A Units —
1,230,769
—
0.0 %
44,918,212
36,536,472
10,241,708

Dream Finders Homes, LLC Construction & Building
Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)⁽¹⁶⁾
10/1/2018 3,399,550
3,366,894
3,430,146
0.8 %
Preferred Equity (8.00% PIK) 3,644,300
3,644,300
3,644,300
0.9 %
7,043,850
7,011,194
7,074,446

Dynamic Energy Services International LLC Energy: Oil & Gas
Senior Secured First Lien Term Loan (13.50% PIK + LIBOR)⁽¹⁶⁾
6/6/2018 18,829,092
18,829,092
16,027,324
3.8 %
18,829,092
18,829,092
16,027,324

Engineered Machinery Holdings, Inc.⁽⁷⁾
Capital Equipment
Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
7/18/2025 1,519,149
1,504,503
1,503,958
0.4 %

Senior Secured Second Lien Delayed Draw Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)^(14)(19)
7/18/2025 151,915
150,405
150,106
0.0 %
1,671,064
1,654,908
1,654,064

FKI Security Group, LLC⁽¹²⁾
Capital Equipment
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
3/30/2020 11,562,500
11,562,500
11,562,500
2.8 %
11,562,500
11,562,500
11,562,500

Footprint Acquisition, LLC Services: Business
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash)⁽¹⁵⁾
2/27/2020 5,051,388
5,051,388
5,051,388
1.2 %
Preferred Equity (8.75% PIK) 6,259,256
6,259,256
5,546,952
1.3 %
Equity - 150 Common Units —
—
—
0.0 %
11,310,644
11,310,644
10,598,340

Freedom Powersports, LLC Automotive
Senior Secured First Lien Term Loan (LIBOR + 10.00% Cash, 1.50% LIBOR Floor)⁽¹⁴⁾
9/26/2019 12,040,000
12,040,000
12,160,400
2.9 %
12,040,000
12,040,000
12,160,400

Friedrich Holdings, Inc. Construction & Building
Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾
2/7/2023 10,000,000
10,000,000
10,143,000
2.4 %
10,000,000
10,000,000
10,143,000

Global Accessories Group, LLC⁽¹²⁾
Consumer goods: Non-durable Equity - 3.8% Membership Interest —
151,337
151,339
0.0 %
—
151,337
151,339

Harrison Gypsum, LLC⁽¹²⁾
Construction & Building
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% PIK, 1.50% LIBOR Floor)⁽¹³⁾
12/21/2018 51,608,547
51,608,547
51,608,547
12.3 %
51,608,547
51,608,547
51,608,547

Heligear Acquisition Co.⁽⁸⁾
Aerospace & Defense Senior Secured First Lien Note (10.25% Cash) 10/15/2019 20,000,000
20,000,000
20,424,000
4.9 %
20,000,000
20,000,000
20,424,000



Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾

Global Accessories Group, LLC⁽¹²⁾	Consumer goods: Non-durable	Equity - 3.8% Membership Interest		—	151,337	151,339	0.1	%
				—	151,337	151,339

Heligear Acquisition Co.	Aerospace & Defense	Senior Secured First Lien Note (10.25% Cash)⁽⁸⁾	10/15/2019	20,000,000	20,000,000	19,268,000	6.9	%
				20,000,000	20,000,000	19,268,000

The Imagine Group, LLC	Media: Advertising, Printing & Publishing	Senior Secured Second Lien Term Loan (LIBOR + 8.75% Cash, 1.00% LIBOR Floor)⁽¹³⁾	6/21/2023	3,000,000	2,965,433	2,708,700	1.0	%
				3,000,000	2,965,433	2,708,700

Impact Group, LLC	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/27/2023	3,271,954	3,271,954	3,160,052	1.1	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/27/2023	9,479,987	9,479,987	9,155,771	3.3	%
				12,751,941	12,751,941	12,315,823

InterFlex Acquisition Company, LLC	Containers, Packaging & Glass	Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	8/18/2022	13,687,500	13,687,500	12,822,450	4.6	%
				13,687,500	13,687,500	12,822,450

L & S Plumbing Partnership, Ltd.	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	2/15/2022	6,369,191	6,369,191	6,369,191	2.3	%
				6,369,191	6,369,191	6,369,191

Lighting Science Group Corporation	Containers, Packaging & Glass	Warrants - 1.01% of Outstanding Equity⁽¹⁸⁾	2/19/2024	—	955,680	—	0.0	%
				—	955,680	—

Manna Pro Products, LLC⁽⁷⁾	Consumer goods: Non-durable	Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	12/8/2023	5,426,096	5,426,096	5,182,464	1.9	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)^(13)(19)	12/8/2023	670,363	670,363	621,020	0.2	%
				6,096,459	6,096,459	5,803,484

Oxford Mining Company, LLC	Metals & Mining	Senior Secured First Lien Term Loan (LIBOR + 10.50% Cash, 0.75% LIBOR Floor, 3.00% PIK)^(10)(14)	12/31/2018	22,880,957	19,741,264	6,923,777	2.5	%
				22,880,957	19,741,264	6,923,777

Point.360	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.00% PIK)^(10)(16)	7/8/2020	2,103,712	2,103,712	1,051,856	0.4	%
		Equity - 479,283 Common Units		—	129,406	—	0.0	%
		Warrants - 2.8% of Outstanding Equity	7/8/2020	—	52,757	—	0.0	%
				2,103,712	2,285,875	1,051,856

RateGain Technologies, Inc.	Hotel, Gaming & Leisure	Unsecured Debt⁽²¹⁾	7/31/2020	761,905	761,905	761,905	0.3	%
		Unsecured Debt⁽²¹⁾	7/31/2021	761,905	761,905	761,905	0.3	%
				1,523,810	1,523,810	1,523,810

Company⁽¹⁾
Industry
Type of Investment⁽⁶⁾
Maturity
Par Amount⁽²⁾

Cost⁽³⁾
Fair Value
% of
Net Assets⁽⁴⁾

Imagine! Print Solutions, LLC Media: Advertising, Printing & Publishing
Senior Secured Second Lien Term Loan (LIBOR + 8.75% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
6/21/2023 3,000,000
2,957,827
2,955,000
0.7 %
3,000,000
2,957,827
2,955,000

Impact Sales, LLC⁽⁷⁾
Services: Business
Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
12/30/2021 2,598,750
2,598,750
2,542,877
0.6 %

Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)^(14)(18)
12/30/2021 119,410
119,410
100,617
0.0 %
2,718,160
2,718,160
2,643,494

InterFlex Acquisition Company, LLC Containers, Packaging & Glass
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾
8/18/2022 14,625,000
14,625,000
14,625,000
3.5 %
14,625,000
14,625,000
14,625,000

JD Norman Industries, Inc. Automotive
Senior Secured First Lien Term Loan (LIBOR + 12.25% Cash)⁽¹⁵⁾
3/6/2019 19,800,000
19,800,000
19,800,000
4.7 %
19,800,000
19,800,000
19,800,000

L & S Plumbing Partnership, Ltd. Construction & Building
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
2/15/2022 20,812,500
20,812,500
21,076,819
5.0 %
20,812,500
20,812,500
21,076,819

Lighting Science Group Corporation Containers, Packaging & Glass
Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)⁽¹⁶⁾
2/19/2019 13,936,111
13,657,725
13,765,393
3.3 %

Warrants - 0.81% of Outstanding Equity⁽²¹⁾
2/19/2024 —
955,680
—
0.0 %
13,936,111
14,613,405
13,765,393

Manna Pro Products, LLC⁽⁷⁾
Consumer goods: Non-durable
Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
12/8/2023 8,000,000
8,000,000
8,000,000
1.9 %

Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)^(14)(18)
12/8/2023 —
—
—
0.0 %
8,000,000
8,000,000
8,000,000

Merchant Cash and Capital, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 13.00% Cash, 3.00% LIBOR Floor)⁽¹³⁾
5/31/2017 2,633,340
2,633,340
2,633,340
0.6 %

Senior Secured Second Lien Term Loan (17.00% PIK)⁽¹⁰⁾
5/4/2017 16,196,491
15,167,277
7,759,739
1.8 %
18,829,831
17,800,617
10,393,079

Oxford Mining Company, LLC Metals & Mining
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 3.00% PIK, 0.75% LIBOR Floor)⁽¹⁴⁾
12/31/2018 21,202,310
21,202,310
21,202,310
5.1 %
21,202,310
21,202,310
21,202,310

Path Medical, LLC⁽⁷⁾
Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
10/11/2021 8,305,335
7,901,696
8,349,354
2.0 %

Senior Secured First Lien Term Loan A (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
10/11/2021 2,808,500
2,808,500
2,861,148
0.7 %
Warrants - 1.56% of Outstanding Equity 1/9/2027 —
499,751
83,018
0.0 %
11,113,835
11,209,947
11,293,520



Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾

Redwood Services Group, LLC⁽⁷⁾	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/6/2023	5,992,219	5,992,219	5,992,219	2.2	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/6/2023	6,193,535	6,193,535	6,193,535	2.2	%
		Revolving Credit Facility (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)^(14)(17)	6/6/2023	875,000	875,000	875,000	0.3	%
				13,060,754	13,060,754	13,060,754

RMS Holding Company, LLC⁽⁷⁾	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	11/16/2022	15,192,735	15,192,735	15,192,735	5.5	%
		Revolving Credit Facility (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)^(14)(17)	11/16/2022	1,973,728	1,973,728	1,963,868	0.7	%
				17,166,463	17,166,463	17,156,603

SavATree, LLC	Environmental Industries	Senior Secured First Lien Term Loan (LIBOR + 5.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/2/2022	2,015,482	2,015,482	2,015,482	0.7	%
				2,015,482	2,015,482	2,015,482

Sendero Drilling Company, LLC	Energy: Oil & Gas	Unsecured Debt (8.00% Cash)	8/31/2019	850,000	850,000	850,000	0.3	%
				850,000	850,000	850,000

Seotowncenter, Inc.	Services: Business	Equity - 3,249.697 Common Units		—	500,000	1,169,891	0.4	%
				—	500,000	1,169,891

SFP Holding, Inc.	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/1/2022	9,690,290	9,690,290	9,690,290	3.5	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/1/2022	3,761,318	3,761,318	3,761,318	1.4	%
		Equity - 1.42% Company Interest		—	736,905	736,905	0.3	%
				13,451,608	14,188,513	14,188,513

Ship Supply Acquisition Corporation	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)^(10)(14)	7/31/2020	7,433,740	7,239,798	2,867,937	1.0	%
				7,433,740	7,239,798	2,867,937

SMART Financial Operations, LLC	Retail	Equity - 700,000 Class A Preferred Units		—	700,000	539,000	0.2	%
				—	700,000	539,000

Stancor, Inc.	Services: Business	Equity - 263,814.43 Class A Units		—	263,814	274,367	0.1	%
				—	263,814	274,367

Starfish Holdco, LLC	High Tech Industries	Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	8/18/2025	2,000,000	1,974,224	1,997,600	0.7	%
				2,000,000	1,974,224	1,997,600

Trans-Fast Remittance LLC⁽⁷⁾	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)^(13)(17)	12/2/2021	3,567,857	3,567,857	3,542,882	1.3	%
		Revolving Credit Facility (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)^(13)(17)	12/2/2021	1,875,000	1,875,000	1,864,875	0.7	%
				5,442,857	5,442,857	5,407,757

Company⁽¹⁾
Industry
Type of Investment⁽⁶⁾
Maturity
Par Amount⁽²⁾

Cost⁽³⁾
Fair Value
% of
Net Assets⁽⁴⁾

The Plastics Group, Inc. Chemicals, Plastics & Rubber Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK) 2/28/2019 21,865,403
21,865,403
3,028,358
0.7 %
Senior Secured First Lien Term Loan 2 (11.00% Cash, 2.00% PIK) 2/28/2018 467,652
467,652
467,652
0.1 %
22,333,055
22,333,055
3,496,010

Point.360 Services: Business
Senior Secured First Lien Term Loan (LIBOR + 6.00% PIK)^(10)(16)
7/8/2020 2,103,712
2,103,712
1,860,313
0.4 %

Equity - 479,283 Common Units⁽²⁰⁾
—
129,406
33,550
0.0 %

Warrants - 2.8% of Outstanding Equity⁽²¹⁾
7/8/2020 —
52,757
21,103
0.0 %
2,103,712
2,285,875
1,914,966

Prince Mineral Holding Corp.⁽⁸⁾
Wholesale
Senior Secured First Lien Note (11.50% Cash)⁽²¹⁾
12/15/2019 6,800,000
6,770,826
6,995,840
1.7 %
6,800,000
6,770,826
6,995,840

Reddy Ice Corporation Beverage & Food
Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 1.25% LIBOR Floor)⁽¹⁴⁾
11/1/2019 17,000,000
17,000,000
16,265,600
3.9 %
17,000,000
17,000,000
16,265,600

RESIC Enterprises, LLC Beverage & Food
Senior Secured Second Lien Term Loan (LIBOR + 8.75% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
11/10/2025 10,000,000
10,000,000
10,000,000
2.4 %
10,000,000
10,000,000
10,000,000

RMS Holding Company, LLC⁽⁷⁾
Services: Business
Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
11/16/2022 12,468,750
12,468,750
12,468,750
3.0 %

Revolving Credit Facility (LIBOR + 6.00% Cash, 1.00% LIBOR
Floor)^(14)(17)
11/16/2022 1,073,204
1,073,204
1,073,204
0.3 %
13,541,954
13,541,954
13,541,954

SavATree, LLC⁽⁷⁾
Environmental Industries
Senior Secured First Lien Term Loan (LIBOR + 5.25% Cash, 1.00% LIBOR Floor)^(14)(18)
6/2/2022 1,872,964
1,872,964
1,884,386
0.4 %
1,872,964
1,872,964
1,884,386

Sendero Drilling Company, LLC Energy: Oil & Gas Warrants - 5.52% of Outstanding Equity 3/18/2019 —
793,523
1,923,944
0.5 %
—
793,523
1,923,944

Seotowncenter, Inc.⁽¹²⁾
Services: Business
Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
9/11/2019 23,478,660
23,478,660
23,478,660
5.6 %
Equity - 3,249.697 Common Units —
500,000
476,763
0.1 %
23,478,660
23,978,660
23,955,423

SFP Holding, Inc.⁽⁷⁾
Construction & Building
Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)^(14)(17)
9/1/2022 6,222,222
6,222,222
6,222,222
1.5 %
Equity - 1.42% Company Interest —
600,000
600,000
0.1 %
6,222,222
6,822,222
6,822,222

Ship Supply Acquisition Corporation Services: Business
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
7/31/2020 7,542,564
7,542,564
7,235,582
1.7 %
7,542,564
7,542,564
7,235,582

SMART Financial Operations, LLC⁽⁷⁾
Retail
Senior Secured First Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
11/22/2021 2,775,000
2,775,000
2,848,500
0.7 %
Equity - 700,000 Class A Preferred Units —
700,000
735,000
0.2 %
2,775,000
3,475,000
3,583,500



Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾		Cost⁽³⁾		Fair Value			% of Net Assets⁽⁴⁾

Vail Holdco Corp	Wholesale	Equity - 11,396 Shares of Series A Preferred Stock (12.50% PIK)⁽⁸⁾		11,396,000		10,970,214		11,328,764			4.1	%
		Equity - 7,700 Shares of Junior Convertible Preferred Stock		7,700,000		7,700,000		12,413,940			4.5	%
		Warrants - 0.4875% of Outstanding Equity		—		425,787		899,358			0.3	%
				19,096,000		19,096,001		24,642,062

Velocity Pooling Vehicle, LLC	Automotive	Senior Secured First Lien Term Loan (LIBOR + 11.00% PIK, 1.00% LIBOR Floor)⁽¹⁴⁾	4/28/2023	835,262		767,173		737,871			0.3	%
		Equity - 5,441 Class A Units		—		302,464		302,465			0.1	%
		Warrants - 0.65% of Outstanding Equity	3/30/2028	—		361,667		361,669			0.1	%
				835,262		1,431,304		1,402,005

Walker Edison Furniture Company LLC	Consumer goods: Durable	Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/26/2024	13,721,203		13,721,203		13,721,203			4.9	%
		Equity - 1,500 Common Units		—		1,500,000		1,500,000			0.5	%
				13,721,203		15,221,203		15,221,203

Watermill-QMC Midco, Inc.	Automotive	Equity - 1.3% Partnership Interest⁽⁹⁾		—		518,283		181,399			0.1	%
				—		518,283		181,399

Xebec Global Holdings, LLC	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	2/12/2024	4,204,682		4,204,682		4,204,682			1.5	%
				4,204,682		4,204,682		4,204,682

Subtotal Non-Controlled/Non-Affiliated Investments				$	362,921,109	$	366,734,912	$	351,330,429

Affiliated Investments:

1888 Industrial Services, LLC⁽⁷⁾	Energy: Oil & Gas	Senior Secured First Lien Term Loan A (LIBOR + 5.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/30/2021	$	8,984,232	$	8,984,232	$	8,984,232		3.2	%
		Senior Secured First Lien Term Loan B (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)^(10)(14)	9/30/2021	22,330,717		20,060,891		13,125,995			4.7	%
		Revolving Credit Facility (LIBOR + 5.00% Cash, 1.00% LIBOR Floor)^(14)(17)	9/30/2021	3,054,639		3,054,639		3,054,639			1.1	%
		Equity - 21,562.16 Class A Units		—		—		—			0.0	%
				34,369,588		32,099,762		25,164,866

Access Media Holdings, LLC⁽⁷⁾	Media: Broadcasting & Subscription	Senior Secured First Lien Term Loan (10.00% PIK)⁽¹⁰⁾	7/22/2020	9,538,339		8,446,385		5,365,316			1.9	%
		Preferred Equity Series A		1,600,000		1,600,000		—			0.0	%
		Preferred Equity Series AA		800,000		800,000		—			0.0	%
		Preferred Equity Series AAA		971,200		971,200		(100,800		)	0.0	%
		Equity - 16 Common Units		—		—		—			0.0	%
				12,909,539		11,817,585		5,264,516

Brantley Transportation LLC⁽¹²⁾	Energy: Oil & Gas	Senior Secured First Lien Term Loan (12.00% PIK)⁽¹⁰⁾	8/2/2017	13,609,829		9,000,000		1,634,540			0.6	%
		Senior Secured First Lien Delayed Draw (LIBOR + 5.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	8/2/2017	503,105		503,105		503,105			0.2	%
		Equity - 7.5 Common Units		—		—		—			0.0	%
				14,112,934		9,503,105		2,137,645

Company⁽¹⁾
Industry
Type of Investment⁽⁶⁾
Maturity
Par Amount⁽²⁾

Cost⁽³⁾
Fair Value
% of
Net Assets⁽⁴⁾

SRS Software, LLC High Tech Industries
Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
2/17/2022 7,443,750
7,443,750
7,508,511
1.8 %
7,443,750
7,443,750
7,508,511

Stancor, Inc. Services: Business
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 0.75% LIBOR Floor)⁽¹³⁾
8/19/2019 4,105,932
4,105,932
4,105,932
1.0 %
Equity - 263,814.43 Class A Units —
263,814
211,052
0.1 %
4,105,932
4,369,746
4,316,984

Starfish Holdco, LLC High Tech Industries
Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
8/18/2025 4,000,000
3,941,779
3,940,000
0.9 %
4,000,000
3,941,779
3,940,000

Taylored Freight Services, LLC Services: Business
Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 2.00% PIK, 1.50% LIBOR Floor)⁽¹⁴⁾
11/1/2017 14,819,981
14,819,981
14,819,981
3.5 %
14,819,981
14,819,981
14,819,981

Trans-Fast Remittance LLC⁽⁷⁾
Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)^(13)(17)
12/2/2021 3,567,857
3,567,857
3,660,357
0.9 %

Revolving Credit Facility (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾
12/2/2021 1,875,000
1,875,000
1,875,000
0.4 %
5,442,857
5,442,857
5,535,357

Vail Holdco Corp Chemicals, Plastics & Rubber Equity - 9,750 Shares of Series A Preferred Stock (12.50% PIK) 9,750,000
9,324,213
9,323,925
2.2 %
Equity - 7,700 Shares of Junior Convertible Preferred Stock 7,700,000
7,700,000
7,700,000
1.8 %
Warrants - 5.52% of Outstanding Equity —
425,787
425,763
0.1 %
17,450,000
17,450,000
17,449,688

Velocity Pooling Vehicle, LLC Automotive Senior Secured First Lien Term Loan (12.00% Cash) 8/15/2018 813,301
813,301
813,301
0.2 %

Senior Secured First Lien Term Loan (LIBOR + 4.00% Cash, 1.00% LIBOR Floor)^(9)(10)
5/14/2021 1,958,668
1,109,768
215,454
0.1 %

Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)^(9)(10)
5/13/2022 24,000,000
21,696,167
240,000
0.1 %
26,771,969
23,619,236
1,268,755

Watermill-QMC Midco, Inc. Automotive
Equity - 1.3% Partnership Interest⁽²³⁾
—
518,283
672,213
0.2 %
—
518,283
672,213

Wheels Up Partners LLC⁽¹²⁾
Aerospace & Defense
Senior Secured First Lien Delayed Draw (LIBOR + 8.55% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
10/15/2021 9,169,027
9,169,027
8,893,956
2.1 %
9,169,027
9,169,027
8,893,956

Subtotal Non-Controlled/Non-Affiliated Investments $ 668,097,514
$ 649,624,352
$ 565,541,395



Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾		Cost⁽³⁾		Fair Value		% of Net Assets⁽⁴⁾

Caddo Investors Holdings 1 LLC⁽¹¹⁾	Forest Products & Paper	Equity - 6.15% Membership Interest		—		2,520,842		2,714,947		1.0	%
				—		2,520,842		2,714,947

Dynamic Energy Services International LLC⁽⁷⁾	Energy: Oil & Gas	Senior Secured First Lien Term Loan (LIBOR + 13.50% PIK)^(10)(16)	12/31/2021	10,450,000		7,824,975		1,188,165		0.4	%
		Revolving Credit Facility (12.00% Cash)	6/30/2019	1,907,859		1,907,859		1,907,859		0.7	%
		Equity - 12,350,000 Class A Units		—		—		—		0.0	%
				12,357,859		9,732,834		3,096,024

JFL-NGS Partners, LLC	Construction & Building	Preferred Equity - A-2 Preferred (3.00% PIK)		31,468,755		31,468,755		31,468,755		11.3	%
		Preferred Equity - A-1 Preferred (3.00% PIK)		4,072,311		4,072,311		4,072,311		1.5	%
		Equity - 57,300 Class B Units		—		57,300		18,193,323		6.5	%
				35,541,066		35,598,366		53,734,389

JFL-WCS Partners, LLC	Environmental Industries	Preferred Equity - Class A Preferred (6.00% PIK)		1,236,269		1,236,269		1,236,270		0.4	%
		Equity - 129,588 Class B Units		—		129,588		2,755,041		1.0	%
				1,236,269		1,365,857		3,991,311

Path Medical, LLC⁽⁷⁾	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 9.50% PIK, 1.00% LIBOR Floor)⁽¹⁴⁾	10/11/2021	8,968,817		8,678,632		8,496,161		3.1	%
		Senior Secured First Lien Term Loan A (LIBOR + 9.50% PIK, 1.00% LIBOR Floor)⁽¹⁴⁾	10/11/2021	3,090,075		3,090,075		2,927,228		1.1	%
		Senior Secured First Lien Term Loan C (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	10/11/2021	688,926		688,926		688,926		0.2	%
		Warrants - 7.68% of Outstanding Equity	1/9/2027	—		499,751		—		0.0	%
				12,747,818		12,957,384		12,112,315

US Multifamily, LLC⁽¹¹⁾	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (10.00% Cash)	6/17/2021	6,670,000		6,670,000		6,670,000		2.4	%
		Equity - 33,300 Preferred Units		—		3,330,000		3,330,000		1.2	%
				6,670,000		10,000,000		10,000,000

Subtotal Affiliated Investments				$	129,945,073	$	125,595,735	$	118,216,013

Controlled Investments:⁽⁵⁾

Capstone Nutrition	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)^(10)(14)	9/25/2020	$	32,566,850	$	20,846,571	$	9,740,745	3.5	%
		Senior Secured First Lien Delayed Draw (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)^(10)(14)	9/25/2020	14,645,171		9,686,866		4,380,371		1.6	%
		Senior Secured First Lien Incremental Delayed Draw (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)⁽¹⁴⁾	9/25/2020	3,727,040		3,727,040		3,727,040		1.3	%
		Equity - 4,664.6 Class B Units and 9,424.4 Class C Units		—		12		—		0.0	%
		Equity - 2,932.3 Common Units		—		400,003		—		0.0	%
				50,939,061		34,660,492		17,848,156

MCC Senior Loan Strategy JV I LLC⁽¹¹⁾	Multisector Holdings	Equity - 87.5% ownership of MCC Senior Loan Strategy JV I LLC		—		78,575,000		75,409,700		27.1	%
				—		78,575,000		75,409,700

Company⁽¹⁾
Industry
Type of Investment⁽⁶⁾
Maturity
Par Amount⁽²⁾

Cost⁽³⁾
Fair Value
% of
Net Assets⁽⁴⁾

Affiliated Investments:

AAR Intermediate Holdings, LLC⁽⁷⁾
Energy: Oil & Gas
Senior Secured First Lien Term Loan A (LIBOR + 5.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
9/30/2021 8,984,232
8,984,232
8,984,232
2.1 %

Senior Secured First Lien Term Loan B (LIBOR + 8.00% PIK, 1.00% LIBOR Floor)⁽¹⁴⁾
9/30/2021 20,225,610
17,330,588
20,225,610
4.8 %

Revolving Credit Facility (LIBOR + 5.00% Cash, 1.00% LIBOR
Floor)^(14)(17)
9/30/2021 539,054
539,054
539,054
0.1 %
Equity - 21,562.16 Class A Units —
—
—
0.0 %
29,748,896
26,853,874
29,748,896

Access Media Holdings, LLC⁽⁷⁾
Media: Broadcasting & Subscription Senior Secured First Lien Term Loan (5.00% Cash, 5.00% PIK) 7/22/2020 8,446,384
8,446,384
8,446,384
2.0 %
Preferred Equity Series A 1,600,000
1,600,000
—
0.0 %
Preferred Equity Series AA 800,000
800,000
—
0.0 %
Preferred Equity Series AAA 532,800
532,800
148,800
0.0 %
Equity - 16 Common Units —
—
—
0.0 %
11,379,184
11,379,184
8,595,184

Brantley Transportation LLC⁽¹²⁾
Energy: Oil & Gas
Senior Secured First Lien Term Loan (12.00% PIK)⁽¹⁰⁾
8/2/2017 11,703,521
9,000,000
7,956,054
1.9 %

Senior Secured First Lien Delayed Draw (LIBOR + 5.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾
8/2/2017 668,105
668,105
668,105
0.2 %
Equity - 7.5 Common Units —
—
—
0.0 %
12,371,626
9,668,105
8,624,159

JFL-NGS Partners, LLC Construction & Building Preferred Equity - A-2 Preferred (3.00% PIK) 30,552,190
30,552,190
30,552,190
7.3 %
Preferred Equity - A-1 Preferred (3.00% PIK) 3,953,700
3,953,700
3,953,700
0.9 %
Equity - 57,300 Class B Units —
57,300
4,318,128
1.0 %
34,505,890
34,563,190
38,824,018

US Multifamily, LLC⁽¹¹⁾
Banking, Finance, Insurance & Real Estate Senior Secured First Lien Term Loan (10.00% Cash) 9/10/2019 6,670,000
6,670,000
6,670,000
1.6 %
Equity - 33,300 Preferred Units —
3,330,000
3,330,000
0.8 %
6,670,000
10,000,000
10,000,000

Subtotal Affiliated Investments $ 94,675,596
$ 92,464,353
$ 95,792,257

Controlled Investments:⁽⁵⁾

Capstone Nutrition⁽¹²⁾
Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)^(10)(14)
9/25/2020 27,049,193
20,803,397
16,056,401
3.8 %

Senior Secured First Lien Delayed Draw (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)^(10)(14)
9/25/2020 11,704,163
9,153,997
6,947,591
1.7 %
Equity - 4,664.6 Class B Units and 9,424.4 Class C Units —
12
—
0.0 %
Equity - 2,932.3 Common Units —
400,003
—
0.0 %
38,753,356
30,357,409
23,003,992

MCC Senior Loan Strategy JV I LLC⁽¹¹⁾
Multisector Holdings Equity - 87.5% ownership of MCC Senior Loan Strategy JV I LLC —
66,762,500
67,405,603
16.1 %
—
66,762,500
67,405,603


Company⁽¹⁾		Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾		Cost⁽³⁾		Fair Value		% of Net Assets⁽⁴⁾			Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾		Cost⁽³⁾		Fair Value		% of Net Assets⁽⁴⁾

NVTN LLC		Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan (LIBOR + 4.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	11/9/2020	3,505,990		3,505,990		3,505,990		0.8	%		Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan (LIBOR + 4.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	11/9/2020	4,255,990		4,255,990		4,255,990		1.5	%
			Senior Secured First Lien Term Loan B (LIBOR + 9.25% PIK, 1.00% LIBOR Floor)⁽¹³⁾	11/9/2020	10,888,153		10,888,153		10,888,153		2.6	%			Senior Secured First Lien Term Loan B (LIBOR + 9.25% PIK, 1.00% LIBOR Floor)^(10)(13)	11/9/2020	12,662,077		12,305,096		9,392,728		3.4	%
			Senior Secured First Lien Term Loan C (LIBOR + 12.00% PIK, 1.00% LIBOR Floor)⁽¹³⁾	11/9/2020	6,738,610		6,738,610		6,738,610		1.6	%			Senior Secured First Lien Term Loan C (LIBOR + 12.00% PIK, 1.00% LIBOR Floor)^(10)(13)	11/9/2020	8,128,466		7,570,054		—		0.0	%
			Equity - 787.4 Class A Units		—		9,550,922		9,550,922		2.3	%			Equity - 787.4 Class A Units		—		9,550,922		—		0.0	%
					21,132,753		30,683,675		30,683,675								25,046,533		33,682,062		13,648,718

OmniVere, LLC		Services: Business	Senior Secured First Lien Term Loan (LIBOR + 13.00% PIK)^(10)(16)	5/5/2019	26,405,280		22,880,599		17,691,538		4.2	%
			Senior Secured First Lien Term Loan (8.00% PIK)	5/5/2019	2,029,701		2,029,701		2,029,701		0.5	%
TPG Plastics LLC														Chemicals, Plastics & Rubber	Senior Secured Second Lien Term Loan (Prime + 5.00% Cash)⁽¹⁵⁾	12/31/2019	373,051		373,051		373,051		0.1	%
			Unsecured Debt (8.00% PIK)⁽¹⁰⁾	7/24/2025	27,209,866		22,727,575		—		0.0	%			Unsecured Debt (10.00% Cash)⁽²⁰⁾		287,810		287,810		287,810		0.1	%
			Equity - 5,055.56 Common Units		—		872,698		—		0.0	%			Equity - 35 Class B Units		—		3,317,149		1,644,752		0.6	%
					55,644,847		48,510,573		19,721,239								660,861		3,978,010		2,305,613

URT Acquisition Holdings Corporation		Services: Business	Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 2.00% LIBOR Floor)⁽¹⁴⁾	5/2/2022	14,966,563		14,966,563		14,966,563		3.6	%		Services: Business	Senior Secured Second Lien Term Loan (LIBOR + 8.00% PIK, 2.00% LIBOR Floor)⁽¹⁴⁾	5/2/2022	17,430,836		17,430,836		17,430,836		6.3	%
			Preferred Equity (12.00% PIK)		5,850,795		5,850,795		5,850,795		1.4	%			Preferred Equity (12.00% PIK)		6,552,890		6,552,890		6,552,890		2.4	%
			Equity - 397,466 Common Units		—		12,936,879		12,937,518		3.1	%			Equity - 397,466 Common Units		—		12,936,879		9,757,790		3.5	%
					20,817,358		33,754,237		33,754,876								23,983,726		36,920,605		33,741,516

Subtotal Controlled Investments	Subtotal Controlled Investments				$	136,348,314	$	210,068,394	$	174,569,385			Subtotal Controlled Investments				$	100,630,181	$	187,816,169	$	142,953,703

Total Investments, December 31, 2017					$	899,121,424	$	952,157,099	$	835,903,037	199.1	%
Total Investments, March 31, 2019													Total Investments, March 31, 2019				$	593,496,363	$	680,146,816	$	612,500,145	220.1	%


(1)	All of our investments are domiciled in the United States. Certain investments also have international operations.


(2)	Par amount includes accumulated ~~PIK~~payment-in-kind (“PIK”) interest, as applicable, and is net of repayments.


(3)	Gross unrealized appreciation, gross unrealized depreciation, and net unrealized depreciation for U.S. federal income tax purposes totaled ~~$18,698,678, $126,023,083,~~$33,845,106, $96,580,044, and ~~$107,324,405,~~$62,734,938, respectively. The tax cost basis of investments is ~~$943,227,442~~$675,235,083 as of ~~December~~March 31, ~~2017.~~2019.


(4)	Percentage is based on net assets of ~~$419,769,455~~$278,320,976 as of ~~December~~March 31, ~~2017.~~2019.


(5)	~~Controlled~~Control Investments are defined by the Investment Company Act of 1940, as amended (the ~~"1940 Act"~~“1940 Act”), as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.


(6)	Unless otherwise indicated, all securities are valued using significant unobservable inputs, which are categorized as Level 3 assets under the definition of ASC 820 fair value hierarchy (see Note 4).


(7)	The investment has an unfunded commitment as of ~~December~~March 31, ~~2017~~2019 (see Note 8), and includes an analysis of the value of any unfunded commitments.


(8)	Securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities represent a fair value of ~~$36,743,765~~$30,596,764 and ~~8.8%~~11.0% of net assets as of ~~December~~March 31, ~~2017,~~2019, and are considered restricted securities.


(9)	~~The~~Represents 1.3% partnership interest ~~rate on these loans is subject to the greater of a London Interbank Offering Rate (''LIBOR'') floor, or 6 month LIBOR plus a base rate. The 6 month LIBOR as of December 31, 2017 was 1.84%.~~in Watermill-QMC Partners, LP and Watermill-EMI Partners, LP.


(10)	The investment was on non-accrual status as of ~~December~~March 31, ~~2017.~~2019.


(11)	The investment is not a qualifying asset as defined under Section 55(a) of 1940 Act, in a whole, or in part. As of ~~December~~March 31, ~~2017, 9.3%~~2019, 14.4% of the Company's portfolio investments were non-qualifying assets.


(12)	A portion of this investment was sold via a participation agreement. The amount stated is the portion retained by Medley Capital Corporation (see Note 3).


(13)	The interest rate on these loans is subject to the greater of a ~~LIBOR~~London Interbank Offering Rate (“LIBOR”) floor, or 1 month LIBOR plus a base rate. The 1 month LIBOR as of ~~December~~March 31, ~~2017~~2019 was ~~1.57%~~2.50%.


(14)	The interest rate on these loans is subject to the greater of a LIBOR floor, or 3 month LIBOR plus a base rate. The 3 month LIBOR as of ~~December~~March 31, ~~2017~~2019 was ~~1.69%~~2.60%.


(15)	~~The~~These loans bear interest at an alternate base rate, onor in the case of these ~~loans is subject to 1 month LIBOR~~particular investments the Prime Rate set by the Federal Reserve, plus a ~~base rate.~~given spread. The ~~1 month LIBOR as of December~~Prime Rate in effect at March 31, ~~2017~~2019 was ~~1.57%~~5.50%.


(16)	The interest rate on these loans is subject to 3 month LIBOR plus a base rate. The 3 month LIBOR as of ~~December~~March 31, ~~2017~~2019 was ~~1.67%~~2.60%.


(17)	This investment earns 0.50% commitment fee on all unused commitment as of ~~December~~March 31, ~~2017.~~2019, and is recorded as a component of interest income on the Consolidated Statements of Operations.


(18)	~~This investment earns 1.00% commitment fee on all unused commitment as of December 31, 2017.~~


~~(19)~~	~~This investment earns 7.25% commitment fee on all unused commitment as of December 31, 2017.~~


~~(20)~~	~~This investment represents a Level 1 security in the ASC 820 table as of December 31, 2017 (see Note 4).~~


~~(21)~~	This investment represents a Level 2 security in the ASC 820 table as of ~~December~~March 31, ~~2017~~2019 (see Note 4).


~~(22)~~(19)	This investment earns ~~0.25%~~1.00% commitment fee on all unused commitment as of ~~December~~March 31, ~~2017.~~2019, and is recorded as a component of interest income on the Consolidated Statements of Operations.

~~(23)~~(20)

~~Represents 1.3% partnership interest~~This investment is scheduled to repay a percentage of the outstanding principal on a quarterly basis. Upon TPG Plastics, LLC obtaining all environmental and product testing authorizations, licenses and permits from all applicable governmental authorities, the remaining outstanding principal is expected to be repaid in ~~Watermill-QMC Partners, LP, and Watermill-EMI Partners, LP.~~full.


(21)	Security is non-income producing.

See accompanying notes to consolidated financial statements.

Medley Capital Corporation

Consolidated Schedule of Investments

September 30, ~~2017~~2018


Company⁽¹⁾		Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾			Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾		Cost⁽³⁾		Fair Value		% of Net Assets⁽⁴⁾

Non-Controlled/Non-Affiliated Investments:	Non-Controlled/Non-Affiliated Investments:									Non-Controlled/Non-Affiliated Investments:

3SI Security Systems, Inc.		Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/16/2023	17,500,000	17,500,000	17,500,000	3.8	%		Services: Business	Senior Secured First Lien Term Loan (LIBOR + 5.75% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/16/2023	$	17,325,000	$	17,325,000	$	17,325,000	5.4	%
					17,500,000	17,500,000	17,500,000							17,325,000		17,325,000		17,325,000

Accupac, Inc.⁽⁷⁾		Containers, Packaging & Glass	Senior Secured First Lien Term Loan (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)^(13)(18)	9/14/2023	9,887,670	9,887,670	9,887,670	2.2	%		Containers, Packaging & Glass	Senior Secured First Lien Term Loan (LIBOR + 4.50% Cash, 1.00% LIBOR Floor)^(13)(19)	9/14/2023	9,788,793		9,788,793		9,788,793		3.1	%
					9,887,670	9,887,670	9,887,670							9,788,793		9,788,793		9,788,793

Advanced Diagnostic Holdings, LLC		Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	12/11/2020	14,776,537	14,776,537	14,776,537	3.2	%
Alpine SG, LLC⁽⁷⁾											High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	11/16/2022	13,398,750		13,398,750		13,398,750		4.2	%
												Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	11/16/2022	6,617,630		6,617,630		6,617,630		2.1	%
												Revolving Credit Facility (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)^(14)(17)	11/16/2022	—		—		—		0.0	%
					14,776,537	14,776,537	14,776,537							20,016,380		20,016,380		20,016,380

American Dental Partners, Inc.		Healthcare & Pharmaceuticals	Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/25/2023	6,500,000	6,500,000	6,578,000	1.4	%		Healthcare & Pharmaceuticals	Senior Secured Second Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/25/2023	6,500,000		6,500,000		6,565,000		2.1	%
					6,500,000	6,500,000	6,578,000							6,500,000		6,500,000		6,565,000

Autosplice, Inc.		High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/30/2019	14,262,133	14,262,133	14,342,001	3.1	%
Asurion, LLC											Banking, Finance, Insurance & Real Estate	Senior Secured Second Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹³⁾	8/4/2025	7,000,000		7,091,560		7,140,000		2.2	%
					14,262,133	14,262,133	14,342,001							7,000,000		7,091,560		7,140,000

Avantor Performance Materials Holdings, LLC		Chemicals, Plastics & Rubber	Senior Secured Second Lien Term Loan (LIBOR + 8.25% Cash, 1.00% LIBOR Floor)⁽¹³⁾	3/10/2025	1,000,000	990,465	1,020,000	0.2	%
Autosplice, Inc.											High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/17/2020	13,891,687		13,891,687		13,958,367		4.3	%
					1,000,000	990,465	1,020,000							13,891,687		13,891,687		13,958,367

Barry's Bootcamp Holdings, LLC⁽⁷⁾		Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/14/2022	7,628,570	7,628,570	7,628,570	1.7	%		Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/14/2022	7,628,570		7,628,570		7,505,750		2.3	%
			Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/14/2022	—	—	—	0.0	%			Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/14/2022	—		—		—		0.0	%
			Revolving Credit Facility (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)^(14)(17)	7/14/2022	—	—	—	0.0	%			Revolving Credit Facility (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)^(14)(17)	7/14/2022	2,200,000		2,200,000		2,200,000		0.7	%
					7,628,570	7,628,570	7,628,570							9,828,570		9,828,570		9,705,750

Be Green Packaging, LLC		Containers, Packaging & Glass	Equity - 417 Common Units		—	416,250	—	0.0	%		Containers, Packaging & Glass	Equity - 417 Common Units		—		416,250		—		0.0	%
					—	416,250	—							—		416,250		—

Black Angus Steakhouses, LLC⁽⁷⁾		Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	4/24/2020	7,700,893	7,700,893	7,375,190	1.6	%		Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	4/24/2020	7,495,536		7,495,536		7,373,065		2.3	%
			Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	4/24/2020	—	—	—	0.0	%			Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	4/24/2020	—		—		—		0.0	%
			Revolving Credit Facility (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)^(14)(17)	4/24/2020	376,360	376,360	343,324	0.1	%			Revolving Credit Facility (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)^(14)(17)	4/24/2020	267,857		267,857		267,857		0.1	%
					8,077,253	8,077,253	7,718,514							7,763,393		7,763,393		7,640,922


Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾		Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾

Brook & Whittle Holding Corp.⁽⁷⁾									Containers, Packaging & Glass	Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	10/17/2023	1,320,297	1,320,297	1,331,381	0.4	%
										Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)^(14)(18)	10/17/2023	—	—	—	0.0	%
												1,320,297	1,320,297	1,331,381

Central States Dermatology Services, LLC⁽⁷⁾	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	4/20/2022	1,087,248	1,087,248	1,087,248	0.2	%	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	4/20/2022	1,076,331	1,076,331	1,076,331	0.3	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)^(14)(18)	4/20/2022	155,930	155,930	155,930	0.0	%		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)^(14)(19)	4/20/2022	270,991	270,991	270,991	0.1	%
				1,243,178	1,243,178	1,243,178						1,347,322	1,347,322	1,347,322

Comfort Holding, LLC	Consumer goods: Durable	Senior Secured Second Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	2/3/2025	1,000,000	961,738	850,200	0.2	%
				1,000,000	961,738	850,200

CP OPCO, LLC⁽⁷⁾	Services: Consumer	Senior Secured First Lien Term Loan B (ABR + 5.50% PIK, 4.25% ABR Floor)⁽¹⁰⁾	3/31/2019	1,244,335	1,210,237	338,459	0.1	%
		Senior Secured First Lien Term Loan C (ABR + 8.50% PIK, 4.25% ABR Floor)⁽¹⁰⁾	3/31/2019	9,088,659	4,060,507	—	0.0	%
CP OPCO, LLC									Services: Consumer	Senior Secured First Lien Term Loan B (Prime + 5.50% PIK)^(10)(15)	4/1/2019	1,375,911	1,210,237	234,042	0.1	%
		Preferred Facility (ABR + 7.00% PIK, 3.75% ABR Floor)⁽¹⁰⁾	3/31/2019	5,297,476	—	—	0.0	%		Senior Secured First Lien Term Loan C (Prime + 8.50% PIK)^(10)(15)	4/1/2019	10,352,733	4,060,507	—	0.0	%
		Revolving Credit Facility (ABR + 3.50% Cash, 4.25% ABR Floor)	3/31/2019	—	—	—	0.0	%		Preferred Facility (Prime + 7.00% PIK)^(10)(15)	4/1/2019	5,883,641	—	—	0.0	%
		Equity - 232 Common Units		—	—	—	0.0	%		Equity - 232 Common Units		—	—	—	0.0	%
				15,630,470	5,270,744	338,459						17,612,285	5,270,744	234,042

CPI International, Inc.	Aerospace & Defense	Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)⁽¹³⁾	7/26/2025	5,000,000	4,975,352	4,975,000	1.1	%	Aerospace & Defense	Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)⁽¹³⁾	7/28/2025	4,010,025	3,992,123	4,034,486	1.3	%
				5,000,000	4,975,352	4,975,000						4,010,025	3,992,123	4,034,486

Crow Precision Components, LLC	Aerospace & Defense	Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/30/2019	13,277,500	13,277,500	13,246,962	2.9	%	Aerospace & Defense	Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/30/2019	12,890,000	12,890,000	12,890,000	4.0	%
		Equity - 350 Common Units		—	700,000	273,808	0.1	%		Equity - 350 Common Units		—	700,000	521,203	0.2	%
				13,277,500	13,977,500	13,520,770						12,890,000	13,590,000	13,411,203

CT Technologies Intermediate Holdings, Inc.⁽¹²⁾	Healthcare & Pharmaceuticals	Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	12/1/2022	7,500,000	7,500,000	7,500,000	1.6	%	Healthcare & Pharmaceuticals	Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	12/1/2022	7,500,000	7,500,000	7,223,250	2.2	%
				7,500,000	7,500,000	7,500,000						7,500,000	7,500,000	7,223,250

DHISCO Electronic Distribution, Inc.	Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan A (LIBOR + 8.50% PIK, 1.50% LIBOR Floor)⁽¹⁴⁾	11/10/2019	4,005,143	4,005,143	4,005,143	0.9	%
		Senior Secured First Lien Term Loan B (LIBOR + 11.00% PIK, 1.50% LIBOR Floor)⁽¹⁴⁾	11/10/2019	14,732,716	14,732,716	14,732,716	3.2	%
		Senior Secured First Lien Term Loan C (LIBOR + 12.25% PIK, 1.50% LIBOR Floor)^(10)(14)	11/10/2019	12,751,998	11,600,575	6,375,999	1.4	%
		Senior Secured First Lien Term Loan D (LIBOR + 13.25% PIK, 1.50% LIBOR Floor)^(10)(14)	11/10/2019	11,956,119	4,701,476	—	0.0	%
DataOnline Corp.⁽⁷⁾									High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.75% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/31/2025	16,000,000	16,000,000	16,000,000	5.0	%
		Equity - 1,230,769 Class A Units		—	1,230,769	—	0.0	%		Revolving Credit Facility (LIBOR + 5.75% Cash, 1.00% LIBOR Floor)^(14)(17)	7/31/2024	—	—	—	0.0	%
				43,445,976	36,270,679	25,113,858						16,000,000	16,000,000	16,000,000

Dream Finders Homes, LLC	Construction & Building	Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)⁽¹⁶⁾	10/1/2018	3,460,972	3,417,279	3,495,581	0.8	%	Construction & Building	Senior Secured First Lien Term Loan B (LIBOR + 14.50% Cash)⁽¹⁶⁾	10/1/2019	2,418,494	2,418,494	2,418,494	0.8	%
		Preferred Equity (8.00% PIK)		3,571,500	3,571,500	3,571,500	0.8	%		Preferred Equity (8.00% PIK)		3,866,737	3,866,737	3,866,737	1.2	%
				7,032,472	6,988,779	7,067,081						6,285,231	6,285,231	6,285,231

Dynamic Energy Services International LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan (13.50% PIK + LIBOR)⁽¹⁶⁾	6/6/2018	18,201,153	18,201,153	15,492,821	3.4	%	Energy: Oil & Gas	Senior Secured First Lien Term Loan (LIBOR + 13.50% PIK)^(10)(16)	5/6/2019	20,952,402	18,674,779	6,040,577	1.9	%
				18,201,153	18,201,153	15,492,821						20,952,402	18,674,779	6,040,577

Engineered Machinery Holdings, Inc.									Capital Equipment	Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/18/2025	1,671,064	1,656,132	1,662,708	0.5	%
												1,671,064	1,656,132	1,662,708

FKI Security Group, LLC⁽¹²⁾									Capital Equipment	Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	3/30/2020	11,281,250	11,281,250	11,281,250	3.5	%
												11,281,250	11,281,250	11,281,250

Company⁽¹⁾
Industry
Type of Investment⁽⁶⁾
Maturity
Par Amount⁽²⁾

Cost⁽³⁾
Fair Value
% of
Net Assets⁽⁴⁾

Engineered Machinery Holdings, Inc.⁽⁷⁾
Capital Equipment
Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
7/18/2025 1,519,149
1,504,143
1,503,957
0.3 %

Senior Secured Second Lien Delayed Draw Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)^(14)(19)
7/18/2025 21,702
21,487
19,894
0.0 %
1,540,851
1,525,630
1,523,851

FKI Security Group, LLC⁽¹²⁾
Capital Equipment
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
3/30/2020 11,656,250
11,656,250
11,656,250
2.5 %
11,656,250
11,656,250
11,656,250

Footprint Acquisition, LLC Services: Business
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash)⁽¹⁵⁾
2/27/2020 5,117,626
5,117,626
5,117,626
1.1 %
Preferred Equity (8.75% PIK) 6,124,188
6,124,188
5,427,255
1.2 %
Equity - 150 Common Units —
—
—
0.0 %
11,241,814
11,241,814
10,544,881

Freedom Powersports, LLC Automotive
Senior Secured First Lien Term Loan (LIBOR + 10.00% Cash, 1.50% LIBOR Floor)⁽¹⁴⁾
9/26/2019 12,410,000
12,410,000
12,517,967
2.7 %
12,410,000
12,410,000
12,517,967

Friedrich Holdings, Inc. Construction & Building
Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾
2/7/2023 10,000,000
10,000,000
10,094,000
2.2 %
10,000,000
10,000,000
10,094,000

Global Accessories Group, LLC⁽¹²⁾
Consumer goods: Non-durable Equity - 3.8% Membership Interest —
151,337
151,339
0.0 %
—
151,337
151,339

Harrison Gypsum, LLC⁽¹²⁾
Construction & Building
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% PIK, 1.50% LIBOR Floor)⁽¹³⁾
12/21/2018 52,137,471
52,137,471
50,667,194
11.0 %
52,137,471
52,137,471
50,667,194

Heligear Acquisition Co.⁽⁸⁾
Aerospace & Defense Senior Secured First Lien Note (10.25% Cash) 10/15/2019 20,000,000
20,000,000
20,478,000
4.4 %
20,000,000
20,000,000
20,478,000

Imagine! Print Solutions LLC Media: Advertising, Printing & Publishing
Senior Secured Second Lien Term Loan (LIBOR + 8.75% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
6/21/2023 3,000,000
2,956,403
2,955,000
0.6 %
3,000,000
2,956,403
2,955,000

Impact Sales, LLC⁽⁷⁾
Services: Business
Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
12/30/2021 2,605,312
2,605,312
2,621,986
0.6 %

Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)^(14)(18)
12/30/2021 119,711
119,711
125,307
0.0 %
2,725,023
2,725,023
2,747,293

InterFlex Acquisition Company, LLC Containers, Packaging & Glass
Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾
8/18/2022 14,812,500
14,812,500
14,812,500
3.2 %
14,812,500
14,812,500
14,812,500

JD Norman Industries, Inc. Automotive
Senior Secured First Lien Term Loan (LIBOR + 12.25% Cash)⁽¹⁵⁾
3/6/2019 20,100,000
20,100,000
20,071,860
4.4 %
20,100,000
20,100,000
20,071,860



Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾

Footprint Acquisition, LLC	Services: Business	Preferred Equity (8.75% PIK)		6,677,895	6,677,895	6,677,895	2.1	%
		Equity - 150 Common Units		—	—	1,753,260	0.6	%
				6,677,895	6,677,895	8,431,155

Freedom Powersports, LLC	Automotive	Senior Secured First Lien Term Loan (LIBOR + 10.00% Cash, 1.50% LIBOR Floor)⁽¹⁴⁾	9/26/2019	10,930,000	10,930,000	10,930,000	3.4	%
				10,930,000	10,930,000	10,930,000

Friedrich Holdings, Inc.	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	2/7/2023	9,950,349	9,950,349	9,950,349	3.1	%
				9,950,349	9,950,349	9,950,349

Global Accessories Group, LLC⁽¹²⁾	Consumer goods: Non-durable	Equity - 3.8% Membership Interest		—	151,337	151,339	0.0	%
				—	151,337	151,339

Heligear Acquisition Co.	Aerospace & Defense	Senior Secured First Lien Note (10.25% Cash)⁽⁸⁾	10/15/2019	20,000,000	20,000,000	19,268,000	6.0	%
				20,000,000	20,000,000	19,268,000

The Imagine Group, LLC⁽²⁴⁾	Media: Advertising, Printing & Publishing	Senior Secured Second Lien Term Loan (LIBOR + 8.75% Cash, 1.00% LIBOR Floor)⁽¹³⁾	6/21/2023	3,000,000	2,962,275	2,750,100	0.9	%
				3,000,000	2,962,275	2,750,100

Impact Group, LLC^(7)(25)	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/27/2023	3,457,319	3,457,319	3,457,319	1.1	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)^(14)(19)	6/27/2023	1,427,914	1,427,914	1,427,914	0.5	%
				4,885,233	4,885,233	4,885,233

InterFlex Acquisition Company, LLC	Containers, Packaging & Glass	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	8/18/2022	14,062,500	14,062,500	13,048,594	4.1	%
				14,062,500	14,062,500	13,048,594

Jackson Hewitt Tax Service Inc.	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash)	5/31/2023	7,000,000	7,000,000	7,000,000	2.2	%
				7,000,000	7,000,000	7,000,000

L & S Plumbing Partnership, Ltd.	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	2/15/2022	19,529,449	19,529,449	19,765,755	6.2	%
				19,529,449	19,529,449	19,765,755

Lighting Science Group Corporation	Containers, Packaging & Glass	Warrants - 1.01% of Outstanding Equity⁽²⁰⁾	2/19/2024	—	955,680	50,000	0.0	%
				—	955,680	50,000

Manna Pro Products, LLC⁽⁷⁾	Consumer goods: Non-durable	Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	12/8/2023	5,453,570	5,453,570	5,434,482	1.7	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)^(13)(19)	12/8/2023	670,363	670,363	666,517	0.2	%
				6,123,933	6,123,933	6,100,999

Midcoast Energy, LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	8/1/2025	3,000,000	2,970,391	3,003,900	0.9	%
				3,000,000	2,970,391	3,003,900

Company⁽¹⁾
Industry
Type of Investment⁽⁶⁾
Maturity
Par Amount⁽²⁾

Cost⁽³⁾
Fair Value
% of
Net Assets⁽⁴⁾

L & S Plumbing Partnership, Ltd. Construction & Building
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
2/15/2022 21,234,375
21,234,375
21,412,744
4.7 %
21,234,375
21,234,375
21,412,744

Lighting Science Group Corporation Containers, Packaging & Glass
Senior Secured Second Lien Term (LIBOR + 10.00% Cash, 2.00% PIK)⁽¹⁶⁾
2/19/2019 13,865,893
13,531,508
13,386,133
2.9 %

Warrants - 0.98% of Outstanding Equity⁽²¹⁾
2/19/2024 —
955,680
—
0.0 %
13,865,893
14,487,188
13,386,133

Merchant Cash and Capital, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 13.00% Cash, 3.00% LIBOR Floor)⁽¹³⁾
5/31/2017 4,915,635
4,915,635
4,915,635
1.1 %

Senior Secured Second Lien Term Loan (17.00% PIK)⁽¹⁰⁾
5/4/2017 15,519,966
15,167,277
7,759,983
1.7 %
20,435,601
20,082,912
12,675,618

Nation Safe Drivers Holdings, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 2.00% LIBOR Floor)⁽¹⁴⁾
9/29/2020 35,278,846
35,278,846
35,278,846
7.7 %
35,278,846
35,278,846
35,278,846

Oxford Mining Company, LLC Metals & Mining
Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 3.00% PIK, 0.75% LIBOR Floor)⁽¹⁴⁾
12/31/2018 21,127,331
21,127,331
21,127,331
4.6 %
21,127,331
21,127,331
21,127,331

The Plastics Group, Inc. Chemicals, Plastics & Rubber Senior Secured First Lien Term Loan (11.00% Cash, 2.00% PIK) 2/28/2019 21,755,233
21,755,233
18,992,318
4.1 %
21,755,233
21,755,233
18,992,318

Path Medical, LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
10/11/2021 8,459,113
8,034,525
8,503,947
1.8 %

Senior Secured First Lien Term Loan A (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾
10/11/2021 2,808,500
2,808,500
2,823,385
0.6 %
Warrants - 1.56% of Outstanding Equity 1/9/2027 —
499,751
83,018
0.0 %
11,267,613
11,342,776
11,410,350

Point.360 Services: Business
Senior Secured First Lien Term Loan (LIBOR + 6.00% PIK)⁽¹⁶⁾
7/8/2020 2,085,870
2,085,870
1,844,534
0.4 %

Equity - 479,283 Common Units⁽²⁰⁾
—
129,406
38,343
0.0 %

Warrants - 2.8% of Outstanding Equity⁽²¹⁾
7/8/2020 —
52,757
21,103
0.0 %
2,085,870
2,268,033
1,903,980

Prince Mineral Holding Corp.⁽⁸⁾
Wholesale
Senior Secured First Lien Note (11.50% Cash)⁽²¹⁾
12/15/2019 6,800,000
6,767,560
7,066,560
1.5 %
6,800,000
6,767,560
7,066,560

Reddy Ice Corporation Beverage & Food
Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 1.25% LIBOR Floor)⁽¹⁴⁾
11/1/2019 17,000,000
17,000,000
16,117,700
3.5 %
17,000,000
17,000,000
16,117,700

SavATree, LLC⁽⁷⁾
Environmental Industries
Senior Secured First Lien Term Loan (LIBOR + 5.25% Cash, 1.00% LIBOR Floor)^(14)(18)
6/2/2022 1,330,000
1,330,000
1,330,000
0.3 %
1,330,000
1,330,000
1,330,000



Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾

Oxford Mining Company, LLC	Metals & Mining	Senior Secured First Lien Term Loan (LIBOR + 11.50% PIK, 0.75% LIBOR Floor)^(10)(14)	12/31/2018	21,925,733	19,746,873	8,814,145	2.7	%
				21,925,733	19,746,873	8,814,145

Path Medical, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	10/11/2021	8,151,557	7,813,946	7,654,312	2.4	%
		Senior Secured First Lien Term Loan A (LIBOR + 9.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	10/11/2021	2,808,500	2,808,500	2,637,182	0.8	%
		Warrants - 1.56% of Outstanding Equity	1/9/2027	—	499,751	—	0.0	%
				10,960,057	11,122,197	10,291,494

Point.360	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.00% PIK)^(10)(16)	7/8/2020	2,103,712	2,103,712	1,051,856	0.3	%
		Equity - 479,283 Common Units		—	129,406	—	0.0	%
		Warrants - 2.8% of Outstanding Equity	7/8/2020	—	52,757	—	0.0	%
				2,103,712	2,285,875	1,051,856

RateGain Technologies, Inc.	Hotel, Gaming & Leisure	Unsecured Debt⁽²⁶⁾	7/31/2020	761,905	761,905	761,905	0.2	%
		Unsecured Debt⁽²⁶⁾	7/31/2021	761,905	761,905	761,905	0.2	%
				1,523,810	1,523,810	1,523,810

Redwood Services Group, LLC⁽⁷⁾	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/6/2023	6,022,406	6,022,406	6,022,406	1.9	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	6/6/2023	1,373,485	1,373,485	1,373,485	0.4	%
		Revolving Credit Facility (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)^(14)(17)	6/6/2023	—	—	—	0.0	%
				7,395,891	7,395,891	7,395,891

RMS Holding Company, LLC⁽⁷⁾	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	11/16/2022	15,269,745	15,269,745	15,269,745	4.8	%
		Revolving Credit Facility (LIBOR + 6.00% Cash, 1.00% LIBOR Floor)^(14)(17)	11/16/2022	1,073,204	1,073,204	1,066,744	0.3	%
				16,342,949	16,342,949	16,336,489

SavATree, LLC⁽⁷⁾	Environmental Industries	Senior Secured First Lien Term Loan (LIBOR + 5.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	6/2/2022	1,858,855	1,858,855	1,858,855	0.6	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 5.25% Cash, 1.00% LIBOR Floor)^(14)(19)	6/2/2022	43,225	43,225	43,225	0.0	%
				1,902,080	1,902,080	1,902,080

Sendero Drilling Company, LLC	Energy: Oil & Gas	Unsecured Debt (8.00% Cash)	8/31/2019	850,000	850,000	850,000	0.3	%
				850,000	850,000	850,000

Seotowncenter, Inc.	Services: Business	Equity - 3,249.697 Common Units		—	500,000	532,885	0.2	%
				—	500,000	532,885


Company⁽¹⁾	Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾		Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾	Cost⁽³⁾	Fair Value	% of Net Assets⁽⁴⁾

Sendero Drilling Company, LLC	Energy: Oil & Gas	Warrants - 5.52% of Outstanding Equity	3/18/2019	—	793,523	2,188,676	0.5	%
SFP Holding, Inc.⁽⁷⁾									Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/1/2022	9,739,371	9,739,371	9,739,371	3.0	%
				—	793,523	2,188,676				Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)^(14)(17)	9/1/2022	1,005,364	1,005,364	1,005,364	0.3	%

Seotowncenter, Inc.⁽¹²⁾	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/11/2019	23,697,976	23,697,976	23,697,976	5.1	%
		Equity - 3,249.697 Common Units		—	500,000	419,731	0.1	%
				23,697,976	24,197,976	24,117,707

SFP Holding, Inc.⁽⁷⁾	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 6.25% Cash, 1.00% LIBOR Floor)^(14)(17)	9/1/2022	6,222,222	6,222,222	6,222,222	1.4	%
		Equity - 1.42% Company Interest		—	600,000	600,000	0.1	%		Equity - 1.42% Company Interest		—	736,905	736,905	0.2	%
				6,222,222	6,822,222	6,822,222						10,744,735	11,481,640	11,481,640

Ship Supply Acquisition Corporation	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	7/31/2020	7,648,798	7,648,798	7,337,492	1.6	%	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)^(10)(14)	7/31/2020	7,330,098	7,136,156	3,512,583	1.1	%
				7,648,798	7,648,798	7,337,492						7,330,098	7,136,156	3,512,583

SMART Financial Operations, LLC⁽⁷⁾	Retail	Senior Secured First Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	11/22/2021	2,775,000	2,775,000	2,848,500	0.6	%	Retail	Senior Secured First Lien Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	11/22/2021	2,775,000	2,775,000	2,775,833	0.9	%
		Equity - 700,000 Class A Preferred Units		—	700,000	735,000	0.2	%		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 10.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	11/22/2021	2,325,000	2,325,000	2,326,418	0.7	%
				2,775,000	3,475,000	3,583,500				Equity - 700,000 Class A Preferred Units		—	700,000	700,000	0.2	%
												5,100,000	5,800,000	5,802,251

SRS Software, LLC	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	2/17/2022	7,462,500	7,462,500	7,527,424	1.6	%	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 7.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	2/17/2022	7,387,500	7,387,500	7,461,375	2.3	%
				7,462,500	7,462,500	7,527,424						7,387,500	7,387,500	7,461,375

Stancor, Inc.	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 8.50% Cash, 0.75% LIBOR Floor)⁽¹³⁾	8/19/2019	4,346,364	4,346,364	4,346,364	0.9	%	Services: Business	Equity - 263,814.43 Class A Units		—	263,814	274,367	0.1	%
		Equity - 263,814.43 Class A Units		—	263,814	205,775	0.0	%				—	263,814	274,367
				4,346,364	4,610,178	4,552,139

Starfish Holdco, LLC	High Tech Industries	Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	8/18/2025	4,000,000	3,940,532	3,940,000	0.9	%	High Tech Industries	Senior Secured Second Lien Term Loan (LIBOR + 9.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	8/18/2025	4,000,000	3,945,676	4,000,000	1.2	%
				4,000,000	3,940,532	3,940,000						4,000,000	3,945,676	4,000,000

Taylored Freight Services, LLC	Services: Business	Senior Secured Second Lien Term Loan (LIBOR + 9.50% Cash, 2.00% PIK, 1.50% LIBOR Floor)⁽¹⁴⁾	11/1/2017	14,895,052	14,895,052	14,895,052	3.2	%
Trans-Fast Remittance LLC⁽⁷⁾									Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)^(13)(17)	12/2/2021	3,567,857	3,567,857	3,571,557	1.1	%
				14,895,052	14,895,052	14,895,052				Revolving Credit Facility (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)^(13)(17)	12/2/2021	1,875,000	1,875,000	1,875,000	0.6	%
												5,442,857	5,442,857	5,446,557
Trans-Fast Remittance LLC⁽⁷⁾	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)^(13)(17)	12/2/2021	3,567,857	3,567,857	3,661,282	0.8	%

Vail Holdco Corp									Wholesale	Equity - 10,702 Shares of Series A Preferred Stock (12.50% PIK)⁽⁸⁾		10,702,000	10,276,214	10,234,323	3.2	%
										Equity - 7,700 Shares of Junior Convertible Preferred Stock		7,700,000	7,700,000	7,700,000	2.4	%
		Revolving Credit Facility (LIBOR + 8.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	12/2/2021	1,875,000	1,875,000	1,875,000	0.4	%		Warrants - 0.4875% of Outstanding Equity		—	425,787	580,416	0.2	%
				5,442,857	5,442,857	5,536,282						18,402,000	18,402,001	18,514,739

Velocity Pooling Vehicle, LLC	Automotive	Senior Secured First Lien Term Loan (LIBOR + 4.00% Cash, 1.00% LIBOR Floor)⁽⁹⁾	5/14/2021	1,958,668	1,109,768	1,091,958	0.2	%	Automotive	Senior Secured First Lien Term Loan (LIBOR + 11.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	4/28/2023	808,000	734,073	734,553	0.2	%
		Senior Secured Second Lien Term Loan (LIBOR + 7.25% Cash, 1.00% LIBOR Floor)⁽⁹⁾	5/13/2022	24,000,000	21,696,167	4,080,000	0.9	%		Equity - 5,441 Class A Units		—	302,464	302,464	0.1	%
				25,958,668	22,805,935	5,171,958				Warrants - 0.65% of Outstanding Equity	3/30/2028	—	361,667	361,667	0.1	%
												808,000	1,398,204	1,398,684

Walker Edison Furniture Company LLC									Consumer goods: Durable	Senior Secured First Lien Term Loan (LIBOR + 6.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/26/2024	13,807,500	13,807,500	13,807,500	4.3	%
										Equity - 1,500 Common Units		—	1,500,000	1,500,000	0.5	%
												13,807,500	15,307,500	15,307,500


Company⁽¹⁾		Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾		Cost⁽³⁾		Fair Value		% of Net Assets⁽⁴⁾			Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾		Cost⁽³⁾		Fair Value			% of Net Assets⁽⁴⁾

Watermill-QMC Midco, Inc.		Automotive	Equity - Partnership Interest⁽²³⁾		—		518,283		672,213		0.1	%		Automotive	Equity - 1.3% Partnership Interest⁽⁹⁾		—		518,283		698,024			0.2	%
					—		518,283		672,213								—		518,283		698,024

Wheels Up Partners LLC⁽¹²⁾		Aerospace & Defense	Senior Secured First Lien Delayed Draw (LIBOR + 8.55% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	10/15/2021	14,676,659		14,676,659		14,676,659		3.2	%
Xebec Global Holdings, LLC														High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.50% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	2/12/2024	4,225,918		4,225,918		4,225,918			1.3	%
					14,676,659		14,676,659		14,676,659								4,225,918		4,225,918		4,225,918

Subtotal Non-Controlled/Non-Affiliated Investments	Subtotal Non-Controlled/Non-Affiliated Investments				$	640,893,679	$	625,108,198	$	575,495,698			Subtotal Non-Controlled/Non-Affiliated Investments				$	438,395,898	$	428,717,777	$	393,149,374

Affiliated Investments:	Affiliated Investments:												Affiliated Investments:

AAR Intermediate Holdings, LLC⁽⁷⁾		Energy: Oil & Gas	Senior Secured First Lien Term Loan A (LIBOR + 5.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/30/2021	8,984,232		8,984,232		8,984,232		2.0	%
1888 Industrial Services, LLC^(7)(23)														Energy: Oil & Gas	Senior Secured First Lien Term Loan A (LIBOR + 5.00% Cash, 1.00% LIBOR Floor)⁽¹⁴⁾	9/30/2021	$	8,984,232	$	8,984,232	$	8,984,232		2.8	%
			Senior Secured First Lien Term Loan B (LIBOR + 8.00% PIK, 1.00% LIBOR Floor)⁽¹⁴⁾	9/30/2021	19,746,290		16,707,477		19,746,290		4.3	%			Senior Secured First Lien Term Loan B (LIBOR + 8.00% PIK, 1.00% LIBOR Floor)⁽¹⁴⁾	9/30/2021	21,762,155		19,326,112		19,725,217			6.1	%
			Revolving Credit Facility (LIBOR + 5.00% Cash, 1.00% LIBOR Floor)^(14)(17)	9/30/2021	—		—		—		0.0	%			Revolving Credit Facility (LIBOR + 5.00% Cash, 1.00% LIBOR Floor)^(14)(17)	9/30/2021	3,593,693		3,593,693		3,593,693			1.1	%
			Equity - 21,562.16 Class A Units		—		—		—		0.0	%			Equity - 21,562.16 Class A Units		—		—		—			0.0	%
					28,730,522		25,691,709		28,730,522								34,340,080		31,904,037		32,303,142

Access Media Holdings, LLC⁽⁷⁾		Media: Broadcasting & Subscription	Senior Secured First Lien Term Loan (5.00% Cash, 5.00% PIK)	7/22/2020	8,340,525		8,340,525		8,340,525		1.8	%		Media: Broadcasting & Subscription	Senior Secured First Lien Term Loan (10.00% PIK)⁽¹⁰⁾	7/22/2020	9,072,532		8,446,385		5,876,279			1.8	%
			Preferred Equity Series A		1,600,000		1,600,000		—		0.0	%			Preferred Equity Series A		1,600,000		1,600,000		—			0.0	%
			Preferred Equity Series AA		800,000		800,000		—		0.0	%			Preferred Equity Series AA		800,000		800,000		—			0.0	%
			Preferred Equity Series AAA		363,200		363,200		43,200		0.0	%			Preferred Equity Series AAA		899,200		899,200		(172,800		)	(0.1	)%
			Equity - 16 Common Units		—		—		—		0.0	%			Equity - 16 Common Units		—		—		—			0.0	%
					11,103,725		11,103,725		8,383,725								12,371,732		11,745,585		5,703,479

Brantley Transportation LLC^(7)(12)		Energy: Oil & Gas	Senior Secured First Lien Term Loan (12.00% PIK)⁽¹⁰⁾	8/2/2017	11,355,575		9,000,000		7,719,520		1.7	%
Brantley Transportation LLC⁽¹²⁾														Energy: Oil & Gas	Senior Secured First Lien Term Loan (12.00% PIK)⁽¹⁰⁾	8/2/2017	12,829,552		9,000,000		2,882,800			0.9	%
			Senior Secured First Lien Delayed Draw (LIBOR + 5.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	8/2/2017	668,105		668,105		668,105		0.1	%			Senior Secured First Lien Delayed Draw (LIBOR + 5.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	8/2/2017	503,105		503,105		503,105			0.2	%
			Equity - 7.5 Common Units		—		—		—		0.0	%			Equity - 7.5 Common Units		—		—		—			0.0	%
																	13,332,657		9,503,105		3,385,905

Caddo Investors Holdings 1 LLC														Forest Products & Paper	Equity - 6.15% Membership Interest		2,500,000		2,500,000		2,500,000			0.8	%
					12,023,680		9,668,105		8,387,625								2,500,000		2,500,000		2,500,000

JFL-NGS Partners, LLC		Construction & Building	Preferred Equity - A-2 Preferred (3.00% PIK)		30,552,190		30,552,190		30,552,190		6.6	%		Construction & Building	Preferred Equity - A-2 Preferred (3.00% PIK)		31,468,755		31,468,755		31,468,755			9.8	%
			Preferred Equity - A-1 Preferred (3.00% PIK)		3,953,700		3,953,700		3,953,700		0.9	%			Preferred Equity - A-1 Preferred (3.00% PIK)		4,072,311		4,072,311		4,072,311			1.3	%
			Equity - 57,300 Class B Units		—		57,300		63,603		0.0	%			Equity - 57,300 Class B Units		—		57,300		9,825,804			3.1	%
					34,505,890		34,563,190		34,569,493								35,541,066		35,598,366		45,366,870

US Multifamily, LLC⁽¹¹⁾		Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (10.00% Cash)	9/10/2019	6,670,000		6,670,000		6,670,000		1.5	%
JFL-WCS Partners, LLC														Environmental Industries	Preferred Equity - Class A Preferred (6.00% PIK)		1,166,292		1,166,292		1,166,292			0.4	%
			Equity - 33,300 Preferred Units		—		3,330,000		3,330,000		0.7	%			Equity - 129,588 Class B Units		—		129,588		215,116			0.1	%
					6,670,000		10,000,000		10,000,000								1,166,292		1,295,880		1,381,408

Subtotal Affiliated Investments					$	93,033,817	$	91,026,729	$	90,071,365


Company⁽¹⁾		Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾		Cost⁽³⁾		Fair Value		% of Net Assets⁽⁴⁾			Industry	Type of Investment⁽⁶⁾	Maturity	Par Amount⁽²⁾		Cost⁽³⁾		Fair Value		% of Net Assets⁽⁴⁾

US Multifamily, LLC⁽¹¹⁾														Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (10.00% Cash)	6/17/2021	6,670,000		6,670,000		6,670,000		2.1	%
															Equity - 33,300 Preferred Units		—		3,330,000		3,330,000		1.0	%
																	6,670,000		10,000,000		10,000,000

Subtotal Affiliated Investments													Subtotal Affiliated Investments				$	105,921,827	$	102,546,973	$	100,640,804

Controlled Investments:⁽⁵⁾	Controlled Investments:⁽⁵⁾												Controlled Investments:⁽⁵⁾

Capstone Nutrition⁽¹²⁾		Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)^(10)(14)	9/25/2020	26,124,967		20,803,397		18,002,715		3.9	%
Capstone Nutrition														Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)^(10)(14)	9/25/2020	$	30,252,541	$	20,846,571	$	12,657,663	3.9	%
															Senior Secured First Lien Delayed Draw (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)^(10)(14)	9/25/2020	13,604,437		9,686,866		5,692,096		1.8	%
			Senior Secured First Lien Delayed Draw (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)^(10)(14)	9/25/2020	11,304,251		9,153,997		7,789,760		1.7	%			Senior Secured First Lien Incremental Delayed Draw (LIBOR + 12.50% PIK, 1.00% LIBOR Floor)⁽¹⁴⁾	9/25/2020	2,242,721		2,242,721		2,242,721		0.7	%
			Equity - 4,664.6 Class B Units and 9,424.4 Class C Units		—		12		—		0.0	%			Equity - 4,664.6 Class B Units and 9,424.4 Class C Units		—		12		—		0.0	%
			Equity - 2,932.3 Common Units		—		400,003		—		0.0	%			Equity - 2,932.3 Common Units		—		400,003		—		0.0	%
					37,429,218		30,357,409		25,792,475								46,099,699		33,176,173		20,592,480

MCC Senior Loan Strategy JV I LLC⁽¹¹⁾		Multisector Holdings	Equity - 87.5% ownership of MCC Senior Loan Strategy JV I LLC		—		56,087,500		56,137,946		12.2	%		Multisector Holdings	Equity - 87.5% ownership of MCC Senior Loan Strategy JV I LLC		—		78,575,000		78,370,891		24.4	%
					—		56,087,500		56,137,946								—		78,575,000		78,370,891

NVTN LLC^(7)(22)		Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan (LIBOR + 4.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	11/9/2020	3,505,990		3,505,990		3,505,990		0.8	%
NVTN LLC														Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan (LIBOR + 4.00% Cash, 1.00% LIBOR Floor)⁽¹³⁾	11/9/2020	4,005,990		4,005,990		4,005,990		1.2	%
			Senior Secured First Lien Term Loan B (LIBOR + 9.25% PIK, 1.00% LIBOR Floor)⁽¹³⁾	11/9/2020	10,604,502		10,604,502		10,604,502		2.3	%			Senior Secured First Lien Term Loan B (LIBOR + 9.25% PIK, 1.00% LIBOR Floor)⁽¹³⁾	11/9/2020	11,837,367		11,837,367		11,837,367		3.7	%
			Senior Secured First Lien Term Loan C (LIBOR + 12.00% PIK, 1.00% LIBOR Floor)⁽¹³⁾	11/9/2020	6,518,046		6,518,046		6,518,046		1.4	%			Senior Secured First Lien Term Loan C (LIBOR + 12.00% PIK, 1.00% LIBOR Floor)⁽¹³⁾	11/9/2020	7,479,397		7,479,397		7,479,397		2.3	%
			Equity - 787.4 Class A Units		—		9,550,922		9,550,922		2.1	%			Equity - 787.4 Class A Units		—		9,550,922		—		0.0	%
					20,628,538		30,179,460		30,179,460								23,322,754		32,873,676		23,322,754

OmniVere, LLC		Services: Business	Senior Secured First Lien Term Loan (LIBOR + 13.00% PIK)^(10)(16)	5/5/2019	25,470,636		22,880,599		24,500,205		5.3	%		Services: Business	Senior Secured First Lien Term Loan (LIBOR + 13.00% PIK)^(10)(16)	5/5/2019	29,590,984		22,880,599		—		0.0	%
															Senior Secured First Lien Term Loan (8.00% PIK)⁽¹⁰⁾	5/5/2019	4,392,738		4,337,049		1,374,048		0.4	%
															Unsecured Debt (8.00% PIK)⁽¹⁰⁾	7/24/2025	28,912,172		22,727,575		—		0.0	%
															Equity - 5,055.56 Common Units		—		872,698		—		0.0	%
																	62,895,894		50,817,921		1,374,048

TPG Plastics LLC														Chemicals, Plastics & Rubber	Senior Secured Second Lien Term Loan (Prime + 0.00% Cash)⁽¹⁵⁾	12/31/2019	401,346		401,346		401,346		0.1	%
			Senior Secured First Lien Term Loan (8.00% PIK)	5/5/2019	1,409,669		1,409,669		1,409,669		0.3	%			Unsecured Debt (10.00% Cash)⁽²¹⁾		360,000		360,000		360,000		0.1	%
			Unsecured Debt (8.00% PIK)⁽¹⁰⁾	7/24/2025	26,666,961		22,727,575		—		0.0	%			Unsecured Debt (1.00% Cash)⁽²²⁾		646,996		646,996		646,996		0.2	%
			Equity - 5,055.56 Common Units		—		872,698		—		0.0	%			Equity - 35 Class B Units		—		2,670,154		2,670,154		0.8	%
					53,547,266		47,890,541		25,909,874								1,408,342		4,078,496		4,078,496

URT Acquisition Holdings Corporation		Services: Business	Senior Secured Second Lien Term Loan (LIBOR + 8.00% Cash, 2.00% LIBOR Floor)⁽¹⁴⁾	5/2/2022	14,966,563		14,966,563		14,966,563		3.3	%		Services: Business	Senior Secured Second Lien Term Loan (LIBOR + 8.00% PIK, 2.00% LIBOR Floor)⁽¹⁴⁾	5/2/2022	15,112,754		15,112,754		15,112,754		4.7	%
			Preferred Equity (12.00% PIK)		5,500,000		5,500,000		5,500,000		1.2	%			Preferred Equity (12.00% PIK)		5,850,794		5,850,794		5,850,795		1.8	%
			Equity - 397,466 Common Units		—		12,936,879		12,937,518		2.8	%			Equity - 397,466 Common Units		—		12,936,879		12,937,518		4.0	%
					20,466,563		33,403,442		33,404,081								20,963,548		33,900,427		33,901,067

Subtotal Controlled Investments	Subtotal Controlled Investments				$	132,071,585	$	197,918,352	$	171,423,836			Subtotal Controlled Investments				$	154,690,237	$	233,421,693	$	161,639,736

Total Investments, September 30, 2017					$	865,999,081	$	914,053,279	$	836,990,899	181.8	%
Total Investments, September 30, 2018													Total Investments, September 30, 2018				$	699,007,962	$	764,686,443	$	655,429,914	204.1	%


(1)	All of our investments are domiciled in the United States. Certain investments also have international operations.


(2)	Par amount includes accumulated PIK interest, as applicable, and is net of repayments.


(3)	Gross unrealized appreciation, gross unrealized depreciation, and net unrealized depreciation for U.S. federal income tax purposes totaled ~~$15,157,028, $82,394,835,~~$17,795,949, $120,259,250, and ~~$67,237,807,~~$102,463,301, respectively. The tax cost basis of investments is ~~$903,754,350~~$757,893,215 as of September 30, ~~2017.~~2018.


(4)	Percentage is based on net assets of ~~$460,429,317~~$321,178,727 as of September 30, ~~2017.~~2018.


(5)	~~Controlled~~Control Investments are defined by the 1940 Act as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.


(6)	Unless otherwise indicated, all securities are valued using significant unobservable inputs, which are categorized as Level 3 assets under the definition of ASC 820 fair value hierarchy (see Note 4).


(7)	The investment has an unfunded commitment as of September 30, ~~2017~~2018 (see Note 8), and includes an analysis of the value of any unfunded commitments.


(8)	Securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities represent a fair value of ~~$27,544,560~~$29,502,323 and ~~5.9%~~9.2% of net assets as of September 30, ~~2017,~~2018, and are considered restricted securities.


(9)	~~The~~Represents 1.3% partnership interest ~~rate on these loans is subject to the greater of a LIBOR floor, or 6 month LIBOR plus a base rate. The 6 month LIBOR as of September 30, 2017 was 1.50%.~~in Watermill-QMC Partners, LP and Watermill-EMI Partners, LP.


(10)	The investment was on non-accrual status as of September 30, ~~2017.~~2018.


(11)	The investment is not a qualifying asset as defined under Section 55(a) of 1940 Act, in a whole, or in part. As of September 30, ~~2017, 7.9%~~2018, 13.5% of the Company's portfolio investments were non-qualifying assets.


(12)	A portion of this investment was sold via a participation agreement. The amount stated is the portion retained by Medley Capital Corporation (see Note 3).


(13)	The interest rate on these loans is subject to the greater of a LIBOR floor, or 1 month LIBOR plus a base rate. The 1 month LIBOR as of September 30, ~~2017~~2018 was ~~1.24%~~2.24%.


(14)	The interest rate on these loans is subject to the greater of a LIBOR floor, or 3 month LIBOR plus a base rate. The 3 month LIBOR as of September 30, ~~2017~~2018 was ~~1.33%~~2.39%.


(15)	~~The~~These loans bear interest at an alternate base rate, onor in the case of these ~~loans is subject to 1 month LIBOR~~particular investments the Prime Rate set by the Federal Reserve, plus a ~~base rate.~~given spread. The ~~1 month LIBOR as of~~Prime Rate in effect at September 30, ~~2017~~2018 was ~~1.24%~~5.25%.


(16)	The interest rate on these loans is subject to 3 month LIBOR plus a base rate. The 3 month LIBOR as of September 30, ~~2017~~2018 was ~~1.33%~~2.39%.


(17)	This investment earns 0.50% commitment fee on all unused commitment as of September 30, ~~2017.~~2018, and is recorded as a component of interest income on the Consolidated Statements of Operations.


(18)	This investment earns 0.75% commitment fee on all unused commitment as of September 30, 2018, and is recorded as a component of interest income on the Consolidated Statements of Operations.


(19)	This investment earns 1.00% commitment fee on all unused commitment as of September 30, ~~2017.~~


~~(19)~~	~~This investment earns 7.25% commitment fee~~2018, and is recorded as a component of interest income on ~~all unused commitment as~~the Consolidated Statements of ~~September 30, 2017.~~Operations.


(20)	~~This investment represents a Level 1 security in the ASC 820 table as of September 30, 2017 (see Note 4).~~


~~(21)~~	This investment represents a Level 2 security in the ASC 820 table as of September 30, ~~2017~~2018 (see Note 4).


(21)	This investment is scheduled to repay a percentage of the outstanding principal on a quarterly basis. Upon TPG Plastics, LLC obtaining all environmental and product testing authorizations, licenses and permits from all applicable governmental authorities, the remaining outstanding principal is expected to be repaid in full.


(22)	~~Investment changed its name~~This investment shall convert to equity upon TPG Plastics, LLC obtaining all environmental and product testing authorizations, licenses and permits from ~~DLR Restaurants LLC during fiscal year 2017.~~all applicable governmental authorities. Upon conversion Medley Capital Corporation will continue to own 35% of the equity of TPG Plastics, LLC.


(23)	~~Represents 1.3% partnership interest in Watermill-QMC Partners, LP, and Watermill-EMI Partners, LP.~~Investment changed its name from AAR Intermediate Holdings, LLC during FY 2018.


(24)	Investment changed its name from Imagine! Print Solutions, LLC during FY 2018.


(25)	Investment changed its name from Impact Sales, LLC during FY 2018.


(26)	Security is non-income producing.

See accompanying notes to consolidated financial statements.

MEDLEY CAPITAL CORPORATION

Notes to Consolidated Financial Statements

~~December~~March 31, ~~2017~~2019

(unaudited)

Note 1. Organization

Medley Capital Corporation (the “Company,” “we” and “us”) is a non-diversified closed end management investment company incorporated in Delaware that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). We completed our initial public offering (“IPO”) and commenced operations on January 20, 2011. The Company has elected, and ~~qualified~~intends to qualify annually, to be treated, for U.S. federal income tax purposes, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). We are externally managed and advised by MCC Advisors LLC (“MCC Advisors”), awhich is registered with the Securities and Exchange Commission (the “SEC”) as an investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), pursuant to an investment management agreement. MCC Advisors is a ~~majority~~wholly owned subsidiary of Medley LLC, which is controlled by Medley Management Inc. (NYSE: MDLY), a publicly traded asset management firm (“MDLY”), which in turn is controlled by Medley Group LLC, an entity wholly-owned by the senior professionals of Medley LLC. We use the term “Medley” to refer collectively to the activities and operations of Medley Capital LLC, Medley LLC, ~~Medley Management Inc.,~~MDLY, Medley Group LLC, MCC Advisors, associated investment funds and their respective affiliates.

Medley Capital BDC LLC (the “LLC”), a Delaware limited liability company, was formed on April 23, 2010. On January 18, 2011, the LLC, in accordance with Delaware law, converted into Medley Capital Corporation, a Delaware corporation, and on January 20, 2011, the Company filed an election to be regulated as a BDC under the 1940 Act.

On January 20, 2011, the Company consummated its IPO, sold 11,111,112 shares of common stock at $12.00 per share and commenced its operations and investment activities. On February 24, 2011, an additional 450,000 shares of common stock were issued at a price of $12.00 per share pursuant to the partial exercise of the underwriters’ option to purchase additional shares. Net of underwriting fees and offering costs, the Company received total cash proceeds of approximately $129.6 million.

On January 20, 2011, the Company’s shares began trading on the New York Stock Exchange (“NYSE”) under the symbol “MCC”.

Prior to the consummation of our IPO, Medley Opportunity Fund LP (“MOF LP”), a Delaware limited partnership, and Medley Opportunity Fund, Ltd. (“MOF LTD”), a Cayman Islands exempted limited liability company, which are managed by an affiliate of MCC Advisors, transferred all of their respective interests in six loan participations in secured loans to middle market companies with a combined fair value, plus payment-in-kind interest and accrued interest thereon, of approximately $84.95 million (the “Loan Assets”) to MOF I BDC LLC (“MOF I BDC”), a Delaware limited liability company, in exchange for membership interests in MOF I BDC. As a result, MOF LTD owned approximately 90% of the outstanding MOF I BDC membership interests and MOF LP owned approximately 10% of the outstanding MOF I BDC membership interests.

On January 18, 2011, each of MOF LTD and MOF LP contributed their respective MOF I BDC membership interests to the LLC in exchange for LLC membership interests. As a result, MOF I BDC became a wholly-owned subsidiary of the LLC. As a result of the LLC’s conversion noted above, MOF LTD and MOF LP’s LLC membership interests were exchanged for 5,759,356 shares of the Company’s common stock at $14.75 per share. On February 23, 2012, MOF LTD and MOF LP collectively sold 4,406,301 shares of common stock in an underwritten public offering. See Note 7 for further information.

On March 26, 2013, our wholly-owned subsidiary, Medley SBIC LP (“SBIC LP”), a Delaware limited partnership which we own directly and through our wholly-owned subsidiary, Medley SBIC GP LLC, received a license from the Small Business Administration (“SBA”) to operate as a Small Business Investment Company (“SBIC”) under Section 301(c) of the Small Business Investment Company Act of 1958, as amended.

The Company has formed and expects to continue to form certain taxable subsidiaries (the “Taxable Subsidiaries”), which are taxed as corporations for federal income tax purposes. These Taxable Subsidiaries allow us to hold equity securities of portfolio companies organized as pass-through entities while continuing to satisfy the requirements of a RIC under the Code.

The Company’s investment objective is to generate current income and capital appreciation by lending to privately-held middle market companies, primarily through directly originated transactions, to help these companies fund acquisitions, growth or refinancing. The portfolio generally consists of senior secured first lien term loans and senior secured second lien term loans. ~~In some of our investments,~~Occasionally, we will receive warrants or other equity participation features which we believe will have the potential to increase the total investment returns.

Agreements and Plans of Mergers

their respective wholly owned subsidiaries, would be converted into the right to receive (i) 0.3836 shares of Sierra’s common stock; plus (ii) cash in an amount equal to $3.44 per share. In addition, MDLY’s stockholders would have the right to receive certain dividends and/or other payments. If the Mergers are successfully consummated, Sierra’s common stock would be listed on the NYSE under the symbol “SRA” and the TASE, with such listings expected to be effective as of the closing date of the Mergers. Upon completion of the Mergers, the investment portfolios of the Company and Sierra would be combined, Merger Sub, as a successor to MDLY, would be a wholly owned subsidiary of the Combined Company, and the Combined Company would be internally managed by MCC Advisors, its wholly controlled adviser subsidiary.

On April 15, 2019, certain parties in the Class Action reached agreement on the principal terms of a settlement, which are contained in a binding term sheet, dated April 15, 2019 (the “Settlement Term Sheet”), among Brook Taube, Seth Taube, Jeff Tonkel, Mark Lerdal, Karin Hirtler-Garvey, John E. Mack, Arthur S. Ainsberg, the Company, MCC Advisors, Medley LLC, and Medley Group LLC (the “Medley Parties”), on the one hand, and FrontFour, on behalf of itself and a class of similarly situated stockholders of the Company, on the other hand. The Settlement Term Sheet is intended to form the basis of a definitive stipulation of settlement in the Class Action. The Settlement Term Sheet provides that the Company will seek to obtain the agreement and/or consent of Sierra to effect certain amendments to (i) the MCC Merger Agreement and (ii) the MDLY Merger Agreement (together with the MCC Merger Agreement, the “Merger Agreements”). If the foregoing amendments are entered into they will, among other matters (as described in further detail in the Settlement Term Sheet): (a) extend the Outside Date (as defined in the Merger Agreements) to October 31, 2019; (b) permit the Company’s special committee of independent directors (the “MCC Special Committee”) to undertake a sixty-day “go shop” process to solicit superior transactions to the MCC Merger and (c) if the MCC Merger is consummated, create a settlement fund, consisting of $17 million in cash and $30 million of Sierra stock, with the number of shares of Sierra stock to be calculated using the pro forma NAV reported in the future proxy supplement describing the amendments to the MCC Merger Agreement, which will be distributed to eligible members of the Class (as defined in the Settlement Term Sheet). In connection with the Settlement Term Sheet, MDLY has executed an acknowledgement and agreement to take certain actions, including consenting to certain amendments to the Merger Agreements, in furtherance of the transactions contemplated thereby.

In addition, the Settlement Term Sheet provides that the Company and FrontFour will enter into a Governance Agreement pursuant to which, among other matters, FrontFour will be subject to customary standstill restrictions and be required to vote in favor of the MCC Merger at a meeting of stockholders to approve the MCC Merger Agreement and in favor of the directors nominated by our board of directors for election at the Company’s 2019 annual meeting of stockholders.

Under the Settlement Term Sheet, the parties have agreed to cooperate to reduce the agreements reflected therein to a definitive stipulation of settlement (the “Settlement Stipulation”), and to obtain approval of Court of Chancery of the State of Delaware as soon as reasonably practicable thereafter. The Settlement Stipulation will provide for mutual releases between and among FrontFour and the Class, on the one hand, and the Medley Parties, on the other hand, of all claims that were or could have been asserted in the Class Action. The Medley Parties will also release all claims arising out of or relating to the prosecution and settlement of the Class Action and all claims that were or could have been asserted (other than claims against NexPoint Advisors, L.P. and its affiliates) in the litigation pending in the United States District Court for the Southern District of New York captioned Medley Capital Corporation v. FrontFour Capital Group LLC, et al., No. 1:19-cv-02055-LTS (S.D.N.Y.) (the “Federal Action”), and FrontFour and the Class will release all claims arising out of or relating to the prosecution and settlement of the Federal Action.

Under the Settlement Term Sheet, the Company and FrontFour have also undertaken to work together in good faith to agree to supplemental disclosures relating to the transactions contemplated by the Merger Agreements consistent with the Decision.

If the contemplated amendments to the Merger Agreements have not been entered into by May 15, 2019, the Settlement Term Sheet may be terminated by the Company or FrontFour. The contemplated amendments to the Merger Agreements require the agreement of Sierra and there can be no assurance that such agreement will be obtained or that agreements on the amendments to the Merger Agreements will be reached.

Note 2. Significant Accounting Policies

Basis of Presentation

The Company follows the accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946 (“ASC 946”). The accompanying unaudited 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 consolidated accounts of the Company and its wholly-owned subsidiary SBIC LP and its wholly-owned Taxable Subsidiaries. All references made to the “Company,” “we,” and “us” herein include Medley Capital Corporation and its consolidated subsidiaries, except as stated otherwise. Additionally, the accompanying unaudited consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X of the Securities Act of 1933. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments and reclassifications, which are of a normal recurring nature, that are necessary for the fair presentation of financial results as of and for the periods presented. Therefore, this Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended September 30, ~~2017.~~2018. The current period's

results of operations will not necessarily be indicative of results that ultimately may be achieved for the full year ending September 30, ~~2018.~~2019. All intercompany balances and transactions have been eliminated.

Cash and Cash Equivalents

The Company considers cash equivalents to be highly liquid investments with original maturities of three months or less. Cash and cash equivalents include deposits in a money market account. The Company deposits its cash in financial institutions and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limits.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Deferred Offering Costs

Deferred offering costs consist of fees and expenses incurred in connection with the public offering and sale of the Company’s common stock, including legal, accounting, printing fees and other related expenses, as well as costs incurred in connection with the filing of a shelf registration statement. These amounts are capitalized when incurred and recognized as a reduction of offering proceeds when the offering becomes effective or expensed upon expiration of the registration statement.

Debt Issuance Costs

Debt issuance costs, incurred in connection with our credit facilities, unsecured notes and SBA Debentures (see Note 5) are deferred and amortized over the life of the respective facility or instrument.

Indemnification

In the normal course of business, the Company enters into contractual agreements that provide general indemnifications against losses, costs, claims and liabilities arising from the performance of individual obligations under such agreements. The Company has had no material claims or payments pursuant to such agreements. The Company’s individual maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on management’s experience, the Company expects the risk of loss to be remote.

Revenue Recognition

The Company adopted ASU 2014-09, Revenue from Contracts with Customers, effective on October 1, 2018, using the modified retrospective method. Substantially all revenue streams are excluded from the scope of the new standard and the adoption of the standard had no material impact on the Company’s consolidated financial statements.

Interest income, adjusted for amortization of premiums and accretion of discounts, is recorded on an accrual basis. Dividend income, which represents dividends from equity investments and distributions from Taxable Subsidiaries, is recorded on the ex-dividend date and when the distribution is received, respectively.

The Company holds debt investments in its portfolio that contain a payment-in-kind (“PIK”) interest provision. PIK interest, which represents contractually deferred interest added to the investment balance that is generally due at maturity, is recorded on the accrual basis to the extent such amounts are expected to be collected. PIK interest is not accrued if the Company does not expect the issuer to be able to pay all principal and interest when due. For the three and six months ended ~~December~~March 31, ~~2017 and 2016,~~2019, the Company earned approximately ~~$3.2~~$2.0 million and ~~$4.9~~$4.6 million in PIK interest, respectively. For the three and six months ended March 31, 2018, the Company earned approximately $2.5 million and $5.7 million in PIK interest, respectively.

Origination/closing, amendment and transaction break-up fees associated with investments in portfolio companies are recognized as income when we become entitled to such fees. Prepayment penalties received by the Company for debt instruments paid back to the Company prior to the maturity date are recorded as income upon repayment of debt. Administrative agent fees received by the Company are capitalized as deferred revenue and recorded as fee income when the services are rendered. Fee income for the three and six months ended ~~December~~March 31, ~~2017 and 2016~~2019 was approximately ~~$1.8~~$0.3 million and ~~$1.4~~$0.8 million, respectively (see Note 9). Fee income for the three and six months ended March 31, 2018 was approximately $0.5 million and $2.3 million, respectively (see Note 9).

Investment transactions are accounted for on a trade date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the amortized cost basis of investment, without regard to unrealized gains or losses previously recognized. ~~There were no realized gains or losses related to non-cash restructuring transactions for the three months ended December 31, 2017.~~ During the three and six months ended ~~December~~March 31, ~~2016, $6.4~~2019, $10.8 million and $10.8 million of our realized losses, respectively, were related to certain non-cash restructuring transactions, which is recorded on the Consolidated Statements of Operations as a component of net realized gain/(loss) from investments. During the three and six months ended March 31, 2018, $22.2 million and $22.2 million of our realized losses, respectively, were related to certain non-cash restructuring transactions, which is recorded on the Consolidated Statements of Operations as a component of net realized gain/(loss) from investments. The Company reports changes in fair value of investments as a component of the net unrealized appreciation/(depreciation) on investments in the Consolidated Statements of Operations.

Management reviews all loans that become 90 days or more past due on principal or interest or when there is reasonable doubt that principal or interest will be collected for possible placement on management’s designation of non-accrual status. Interest receivable is analyzed regularly and may be reserved

against when deemed uncollectible. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection. ~~At December~~As of March 31, ~~2017,~~2019, certain investments in ~~eight~~nine portfolio companies held by the Company were on non-accrual status with a combined fair value of approximately ~~$65.2~~$55.7 million, or ~~7.8%~~9.1% of the fair value of our portfolio. AtAs of September 30, ~~2017,~~2018, certain investments in ~~six~~nine portfolio companies held by the Company were on non-accrual status with a combined fair value of approximately ~~$72.5~~$48.1 million, or ~~8.7%~~7.3% of the fair value of our portfolio.

Investment Classification

The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, we would be deemed to “control” a portfolio company if we owned more than 25% of its outstanding voting securities and/or had the power to exercise control over the management or policies of such portfolio company. We refer to such investments in portfolio companies that we “control” as “Control Investments.” Under the 1940 Act, we would be deemed to be an “Affiliated Person” of a portfolio company if we own between 5% and 25% of the portfolio company’s outstanding voting securities or we are under common control with such portfolio company. We refer to such investments in Affiliated Persons as “Affiliated Investments.”

Valuation of Investments

The Company applies fair value accounting to all of its financial instruments in accordance with the 1940 Act and ASC Topic 820 - Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC 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 as discussed in Note 4. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date.

Investments for which market quotations are readily available are valued at such market quotations, which are generally obtained from an independent pricing service or multiple broker-dealers or market makers. We weight the use of third-party broker quotations, if any, in determining fair value based on our understanding of the level of actual transactions used by the broker to develop the quote and whether the quote was an indicative price or binding offer. However, debt investments with remaining maturities within 60 days that are not credit impaired are valued at cost plus accreted discount, or minus amortized premium, which approximates fair value. Investments for which market quotations are not readily available are valued at fair value as determined by the Company’s board of directors based upon input from management and third party valuation firms. Because these investments are illiquid and because there may not be any directly comparable companies whose financial instruments have observable market values, these loans are valued using a fundamental valuation methodology, consistent with traditional asset pricing standards, that is objective and consistently applied across all loans and through time.

Investments in investment funds are valued at fair value. Fair values are generally determined utilizing the net asset value (“NAV”) supplied by, or on behalf of, management of each investment fund, which is net of management and incentive fees or allocations charged by the investment fund and is in accordance with the “practical expedient”, as defined by FASB Accounting Standards Update (“ASU”) 2009-12, Investments in Certain Entities that Calculate Net Asset Value per Share. NAVs received by, or on behalf of, management of each investment fund are based on the fair value of the investment funds’ underlying investments in accordance with policies established by management of each investment fund, as described in each of their financial statements and offering memorandum.

The methodologies utilized by the Company in estimating the fair value of its investments categorized as Level 3 generally fall into the following two categories:

The “Market Approach” uses prices and other relevant information generated by market transactions involving identical or comparable (that is, similar) assets, liabilities, or a group of assets and liabilities, such as a business.

The “Income Approach” converts future amounts (for example, cash flows or income and expenses) to a single current (that is, discounted) amount. When the Income Approach is used, the fair value measurement reflects current market expectations about those future amounts.

The Company uses third-party valuation firms to assist the board of directors in the valuation of its portfolio investments. The valuation reports generated by the third-party valuation firms consider the evaluation of financing and sale transactions with third parties, expected cash flows and market based information, including comparable transactions, performance multiples, and movement in yields of debt instruments, among other factors. The Company uses a market yield analysis under the Income Approach or an enterprise model of valuation under the Market Approach, or a combination thereof. In applying the market yield analysis, the value of the Company’s loans is determined based upon inputs such as the coupon rate, current market yield, interest rate spreads of similar securities, the stated value of the loan, and the length to maturity. In applying the enterprise model, the Company uses a waterfall analysis, which takes into account the specific capital structure of the borrower and the related seniority of the instruments within the borrower’s capital structure into consideration. To estimate the enterprise value of the portfolio company, we weigh some or all of the traditional market valuation methods and factors based on the individual circumstances of the portfolio company in order to estimate the enterprise value.

The methodologies and information that the Company utilizes when applying the Market Approach for performing investments include, among other things:

valuations of comparable public companies (“Guideline Comparable Approach”);

recent sales of private and public comparable companies (“Guideline Comparable Approach”);

recent acquisition prices of the company, debt securities or equity securities (“~~Acquisition Price Approach”~~Recent Arms-Length Transaction”);

external valuations of the portfolio company, offers from third parties to buy the company (“Estimated Sales Proceeds Approach”);

subsequent sales made by the company of its investments (“Expected Sales Proceeds Approach”); and

estimating the value to potential buyers.

The methodologies and information that the Company utilizes when applying the Income Approach for performing investments include:

discounting the forecasted cash flows of the portfolio company or securities (Discounted Cash Flow (“DCF”) Approach); and

Black-Scholes model or simulation models or a combination thereof (Income Approach - Option Model) with respect to the valuation of warrants.

For non-performing investments, we may estimate the liquidation or collateral value of the portfolio company’s assets and liabilities using an expected recovery model (Market Approach - Expected Recovery Analysis or Estimated Liquidation Proceeds).

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

our quarterly valuation process begins with each portfolio investment being internally valued by the valuation professionals;

preliminary valuation conclusions are then documented and discussed with senior management; and

an independent valuation firm engaged by our board of directors reviews approximately one third of these preliminary valuations each quarter on a rotating quarterly basis on non-fiscal year-end quarters, such that each of these investments will be valued by independent valuation firms at least twice per annum when combined with the fiscal year-end review of all the investments by independent valuation firms.

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

the audit committee of our board of directors reviews the preliminary valuations of the investment professionals, senior management and independent valuation firms; and

our board of directors discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of MCC Advisors, the respective independent valuation firms and the audit committee.

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 from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

Fair Value of Financial Instruments

The carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts payable and accrued expenses, approximate fair value due to their short-term nature. The carrying amounts and fair values of our long-term obligations are discussed in Note 5.

Recent Accounting Pronouncements

In ~~May 2014,~~March 2017, the FASB issued ASU ~~2014-09, Revenue from Contracts with Customers (Topic 606), which provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers~~2017-08, Receivables - Nonrefundable Fees and Other Costs (“ASU 2017-08”). The amendments in ~~an amount that reflects the consideration to which the entity expects~~ASU 2017-08 require premiums on purchased callable debt securities to be entitled in exchange for such goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contracts with a customer, (2) identify the performance obligations in the contracts, (3) determine the transaction prices, (4) allocate the transaction pricesamortized to the ~~performance obligations~~security’s earliest call date. Prior to this ASU, premiums and discounts on purchased callable debt securities were generally required to be amortized to the security’s maturity date. The amendments in ~~the contracts, and (5) recognize revenue when, or as, the entity satisfies~~ASU 2017-08 do not require any changes to treatment of securities held at a performance obligation. The guidance also requires advanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. In March 2016, the FASB issueddiscount. ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarified the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarified the implementation guidance regarding performance obligations and licensing arrangements. The new standard will become2017-08 is effective for the Company on October 1, ~~2018,~~2019, with early ~~application permitted to~~adoption permitted. Although the ~~effective date of October 1, 2017. The Company~~company is still evaluating the effect ~~that~~of ASU ~~2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has~~2017-08, it determined the effect of the standard on its ongoing financial reporting. The guidance does not apply to revenue associated with financial instruments, including loans and notes that are accounted for under other U.S. GAAP. As a result, the Company does not expect the ~~new revenue recognition guidance~~amendments to have a material impact on its consolidated financial statements.

In August 2018, the ~~elements~~FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. (“ASU 2018-13”). The primary focus of ~~its Consolidated Statements~~ASU 2018-13 is to improve the effectiveness of ~~Operations, most closely associated with financial instruments, including realized gains, fees, interest~~the disclosure requirements for fair value measurements. The changes affect all companies that are required to include fair value measurement disclosures. In general, the amendments in ASU 2018-13 are effective for all entities for fiscal years and ~~dividend income.~~interim periods within those fiscal years, beginning after December 15, 2019. An entity is permitted to early adopt the removed or modified disclosures upon the issuance of ASU 2018-13 and may delay adoption of the additional disclosures, which are required for public companies only, until their effective date. The Company ~~plans~~is currently evaluating the potential impact of this guidance on the Company’s consolidated financial statements and disclosures.

In October 2018, the SEC adopted amendments (the “Amendments”) to ~~adopt the revenue recognition guidance~~certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in ~~the first quarter~~light of fiscal year 2019. The Company’s implementation efforts include the identification of revenue within the scope of the guidance, as well as the evaluation of revenue contracts and related accounting policies. While the Company has not yet identified any materialother SEC disclosure requirements, U.S. GAAP requirements, or changes in the ~~timing~~information environment. In part, the Amendments require an investment company to present distributable earnings in total, rather than showing the three components of ~~revenue recognition,~~distributable earnings. The compliance date for the ~~Company's review~~Amendments is ~~ongoing,~~for all filings on or after November 5, 2018. Among the amendments is the requirement to present the changes in shareholders’ equity in the interim financial statements (either in a separate statement or footnote) in quarterly reports on Form 10-Q.

Management has adopted the Amendments and ~~it continues~~included the required disclosures in the Company’s consolidated financial statements herein. Prior periods have been reclassified to ~~evaluate~~conform to the ~~presentation of certain contract costs.~~current year presentation.

Federal Income Taxes

The Company has elected, and intends to qualify annually, to be treated as a RIC under Subchapter M of the ~~Code and operates in a manner so as to continue to qualify for the tax treatment applicable to RICs.~~Code. In order to continue to qualify as a RIC, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute to its stockholders at least 90% of the sum of investment company taxable income (“ICTI”) including PIK, as defined by the Code, and net tax exempt interest income (which is the excess of our gross tax exempt interest income over certain disallowed deductions) for each taxable year in order to be eligible for tax treatment under Subchapter M of the Code. Depending on the level of ICTI earned in a tax year, the Company may choose to carry forward ICTI in excess of current year dividend distributions into the next tax year. Any such carryover ICTI

must be distributed before the end of that next tax year through a dividend declared prior to filing the final tax return related to the year which generated such ICTI.

The Company is subject to a nondeductible U.S. federal excise tax of 4% on undistributed income if it does not distribute at least 98% of its ordinary income in any calendar year and 98.2% of its capital gain net income for each one-year period ending on October 31 of such calendar year. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions for excise tax purposes, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. There is no provision for federal excise tax for the calendar year ended 2018 accrued at March 31, 2019. For the calendar year ended December 31, 2017, the Company did not distribute at least 98% of its ordinary income and 98.2% of its capital ~~gains. Accordingly, with respect to the calendar year ended December 31, 2017, an~~gains, and subsequently paid $157,922 in federal excise ~~tax expense of $0.1 million was recorded.~~taxes.

The Company’s Taxable Subsidiaries accrue income taxes payable based on the applicable corporate rates on the unrealized gains generated by the investments held by the Taxable Subsidiaries. As of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017,~~2018, the Company ~~recorded~~did not record a deferred tax liability ~~of $0.8 million and $0.9 million, respectively,~~ on the Consolidated Statements of Assets and Liabilities. The change in provision for deferred taxes is included as a component of net realized and unrealized gain/(loss) on investments in the Consolidated Statements of Operations. For the three and six months ended ~~December~~March 31, ~~2017,~~2019, the Company did not record a change in provision for deferred taxes on the unrealized (appreciation)/depreciation on investments. For the three and six months ended March 31, 2018, the change in provision for deferred taxes on the unrealized depreciation on investments was ~~$0.1 million. For the three months ended December 31, 2016, there was no change in provision for deferred taxes on the unrealized (appreciation)/depreciation on investments.~~

~~On December 22, 2017, the United States enacted tax reform legislation through the Tax Cuts~~$0.2 million and Jobs Act, which significantly changes the existing U.S. tax laws, including a reduction in the corporate tax rate from 35% to 21% , a move from a worldwide tax system to a territorial system, as well as other changes. The Company’s Taxable Subsidiaries provisional tax will be based on the new lower blended federal corporate tax rate of 24.25% for the fiscal year ended September 30, 2018. The Taxable Subsidiaries current interpretation of the Tax Act may change, possibly materially, as we complete our analysis and receive additional clarification and implementation guidance.$0.3 million, respectively.

ICTI generally differs from net investment income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. The Company may be required to recognize ICTI in certain circumstances in which it does not receive cash. For example, if the Company holds debt obligations that are treated under applicable tax rules as having original issue discount, the Company must include in ICTI each year a portion of the original issue discount that accrues over the life of the obligation, regardless of whether cash representing such income is received by the Company in the same taxable year. The Company may also have to include in ICTI other amounts that it has not yet received in cash, such as 1) PIK interest income and 2) interest income from investments that have been classified as non-accrual for financial reporting purposes. Interest income on non-accrual investments is not recognized for financial reporting purposes, but generally is recognized in ICTI. Because any original issue discount or other amounts accrued will be included in the Company’s ICTI for the year of accrual, the Company may be required to make a distribution to its stockholders in order to satisfy the minimum distribution requirements, even though the Company will not have received and may not ever receive any corresponding cash amount. ICTI also excludes net unrealized appreciation or depreciation, as investment gains or losses are not included in taxable income until they are realized.

The Company accounts for income taxes in conformity with ASC Topic 740 - Income Taxes (“ASC 740”). ASC 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet a “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current period. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Consolidated Statements of Operations. There were no material uncertain income tax positions at ~~December~~March 31, ~~2017.~~2019. Although we file federal and state tax returns, our major tax jurisdiction is federal. The Company’s federal and state tax returns for the prior three fiscal years remain open, subject to examination by the Internal Revenue Service.

Segments

The Company invests in various industries. The Company separately evaluates the performance of each of its investment relationships. However, because each of these investment relationships has similar business and economic characteristics, they have been aggregated into a single investment segment. All applicable segment disclosures are included in or can be derived from the Company’s financial statements. See Note 3 for further information.

Company Investment Risk, Concentration of Credit Risk, and Liquidity Risk

MCC Advisors has broad discretion in making investments for the Company. Investments will generally consist of debt instruments that may be affected by business, financial market or legal uncertainties. Prices of investments may be volatile, and a variety of factors that are inherently difficult to predict, such as domestic or international economic and political developments, may significantly affect the results of the Company’s activities and the value of its investments. In addition, the value of the Company’s portfolio may fluctuate as the general level of interest rates fluctuate.

The value of the Company’s investments in loans may be detrimentally affected to the extent, among other things, that a borrower defaults on its obligations, there is insufficient collateral and/or there are extensive legal and other costs incurred in collecting on a defaulted loan, observable secondary or primary market yields for similar instruments issued by comparable companies increase materially or risk premiums required in the market between smaller companies, such as our borrowers, and those for which market yields are observable increase materially. MCC Advisors may attempt to minimize this risk by maintaining low loan-to-liquidation values with each loan and the collateral underlying the loan.

The Company’s assets may, at any time, include securities and other financial instruments or obligations that are illiquid or thinly traded, making purchase or sale of such securities and financial instruments at desired prices or in desired quantities difficult. Furthermore, the sale of any such investments may be possible only at substantial discounts, and it may be extremely difficult to value any such investments accurately.

Note 3. Investments

The composition of our investments as of ~~December~~March 31, ~~2017~~2019 as a percentage of our total portfolio, at amortized cost and fair value were as follows (dollars in thousands):


	Amortized Cost		Percentage		Fair Value		Percentage		Amortized Cost		Percentage		Fair Value		Percentage
Senior Secured First Lien Term Loans	$	594,793	62.5	%	$	532,308	63.7	%	$	424,455	62.4	%	$	352,820	57.6	%
Senior Secured Second Lien Term Loans	135,801		14.3		106,304		12.7		37,628		5.5		35,851		5.9
Senior Secured First Lien Notes	26,771		2.8		27,420		3.3		20,000		2.9		19,268		3.1
Unsecured Debt	22,728		2.4		—		—		2,662		0.4		2,662		0.4
MCC Senior Loan Strategy JV I LLC	66,762		7.0		67,406		8.0		78,575		11.6		75,410		12.3
Equity/Warrants	105,302		11.0		102,465		12.3		116,827		17.2		126,489		20.7
Total	$	952,157	100.0	%	$	835,903	100.0	%	$	680,147	100.0	%	$	612,500	100.0	%

The composition of our investments as of September 30, ~~2017~~2018 as a percentage of our total portfolio, at amortized cost and fair value were as follows (dollars in thousands):


	Amortized Cost		Percentage		Fair Value		Percentage		Amortized Cost		Percentage		Fair Value		Percentage
Senior Secured First Lien Term Loans	$	559,461	61.2	%	$	537,163	64.2	%	$	475,801	62.2	%	$	395,015	60.3	%
Senior Secured Second Lien Term Loans	161,885		17.7		135,826		16.2		49,162		6.4		48,890		7.5
Senior Secured First Lien Notes	26,768		2.9		27,545		3.3		20,000		2.6		19,268		2.9
Unsecured Debt	22,728		2.5		—		—		26,108		3.4		3,381		0.5
MCC Senior Loan Strategy JV I LLC	56,087		6.1		56,138		6.7		78,575		10.3		78,371		11.9
Equity/Warrants	87,124		9.6		80,319		9.6		115,040		15.1		110,505		16.9
Total	$	914,053	100.0	%	$	836,991	100.0	%	$	764,686	100.0	%	$	655,430	100.0	%

In connection with certain of the Company’s investments, the Company receives warrants ~~which are obtained~~from certain portfolio companies for the objective of increasing ~~the~~ total investment returns and are not held for hedging purposes. ~~At December~~As of March 31, ~~2017~~2019 and September 30, ~~2017,~~2018, the total fair value of warrants was ~~$2.5~~$1.3 million and ~~$2.3~~$1.0 million, respectively, and were included in investments at fair value on the Consolidated ~~Statements~~Statement of Assets and Liabilities. ~~The Company acquired one warrant position during each of~~During the three months ended ~~December~~March 31, ~~2017~~2019, the Company did not acquire any warrant positions. During the six months ended March 31, 2019, the Company acquired additional warrants in one of its existing portfolio investments. During the three and ~~2016.~~six months ended March 31, 2018, the Company acquired one and two warrant positions, respectively.

Total unrealized appreciation related to warrants for the three and six months ended March 31, 2019 was $0.3 million and $0.3 million, respectively, and was recorded on the Consolidated Statements of Operations as net unrealized appreciation/(depreciation) on investments. Total unrealized depreciation related to warrants for the three and six months ended ~~December~~March 31, ~~2017 and 2016~~2018 was ~~$0.3~~$0.2 million and ~~$0.2~~$0.5 million, respectively, and was recorded on the Consolidated Statements of Operations as net unrealized appreciation/(depreciation) on investments. The warrants are received in connection with individual portfolio investments and are not subject to master netting arrangements.

The following table shows the portfolio composition by industry grouping at fair value at ~~December~~March 31, ~~2017~~2019 (dollars in thousands):


	Fair Value		Percentage		Fair Value		Percentage
Services: Business	$	150,111	18.0	%	$	109,200	17.8	%
Construction & Building	135,549		16.2		90,269		14.7
Multisector Holdings	67,405		8.1		75,410		12.3
High Tech Industries					55,845		9.1
Healthcare & Pharmaceuticals	64,292		7.7		41,858		6.8
Aerospace & Defense					35,437		5.8
Energy: Oil & Gas	56,324		6.7		31,248		5.1
Containers, Packaging & Glass					28,507		4.7
Wholesale					24,642		4.0
Hotel, Gaming & Leisure	48,575		5.8		23,120		3.8
Aerospace & Defense	47,757		5.7
High Tech Industries	43,869		5.3
Containers, Packaging & Glass	39,584		4.7
Banking, Finance, Insurance & Real Estate					15,408		2.5
Consumer goods: Durable					15,221		2.5
Automotive	33,901		4.1		11,773		1.9
Beverage & Food	26,266		3.1
Banking, Finance, Insurance & Real Estate	25,928		3.1
Services: Consumer					11,258		1.8
Capital Equipment					10,885		1.8
Metals & Mining	21,202		2.5		6,924		1.1
Environmental Industries					6,007		1.0
Consumer goods: Non-durable					5,955		1.0
Media: Broadcasting & Subscription					5,264		0.9
Forest Products & Paper					2,715		0.5
Media: Advertising, Printing & Publishing					2,709		0.4
Chemicals, Plastics & Rubber	20,946		2.5		2,306		0.4
Capital Equipment	13,217		1.6
Media: Broadcasting & Subscription	8,595		1.0
Consumer goods: Non-durable	8,151		1.0
Services: Consumer	7,967		1.0
Wholesale	6,996		0.8
Retail	3,584		0.4		539		0.1
Media: Advertising, Printing & Publishing	2,955		0.4
Environmental Industries	1,884		0.2
Consumer goods: Durable	845		0.1
Total	$	835,903	100.0	%	$	612,500	100.0	%

The following table shows the portfolio composition by industry grouping at fair value at September 30, ~~2017~~2018 (dollars in thousands):


	Fair Value		Percentage		Fair Value		Percentage
Services: Business	$	142,912	17.1	%	$	95,021	14.5	%
Construction & Building	130,633		15.6		92,850		14.2
Multisector Holdings					78,371		12.0
High Tech Industries					65,662		10.0
Healthcare & Pharmaceuticals	67,301		8.0		46,020		7.0
Banking, Finance, Insurance & Real Estate	63,491		7.6
Hotel, Gaming & Leisure	63,012		7.5
Multisector Holdings	56,138		6.7
Energy: Oil & Gas	54,800		6.5		45,584		7.0
Aerospace & Defense	53,650		6.4		36,714		5.6
Hotel, Gaming & Leisure					32,487		5.0
Containers, Packaging & Glass					24,219		3.7
Banking, Finance, Insurance & Real Estate					22,587		3.4
Wholesale					18,515		2.8
Services: Consumer					16,940		2.6
Consumer goods: Durable					15,307		2.3
Automotive	38,434		4.6		13,027		2.0
Containers, Packaging & Glass	38,086		4.6
High Tech Industries	25,809		3.1
Capital Equipment					12,944		2.0
Metals & Mining	21,127		2.5		8,814		1.3
Consumer goods: Non-durable					6,252		0.9
Retail					5,802		0.9
Media: Broadcasting & Subscription					5,703		0.9
Chemicals, Plastics & Rubber	20,012		2.4		4,078		0.6
Beverage & Food	16,118		1.9
Capital Equipment	13,180		1.6
Media: Broadcasting & Subscription	8,384		1.0
Services: Consumer	7,967		1.0
Wholesale	7,067		0.8
Retail	3,584		0.4
Environmental Industries					3,283		0.5
Media: Advertising, Printing & Publishing	2,955		0.4		2,750		0.4
Environmental Industries	1,330		0.2
Consumer goods: Durable	850		0.1
Consumer goods: Non-durable	151		0.0
Forest Products & Paper					2,500		0.4
Total	$	836,991	100.0	%	$	655,430	100.0	%

The Company invests in portfolio companies principally located in North America. The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company’s business.

The following table shows the portfolio composition by geographic location at fair value at ~~December~~March 31, ~~2017~~2019 (dollars in thousands):


	Fair Value		Percentage		Fair Value		Percentage
Northeast					$	168,931	27.6	%
West	$	172,641	20.7	%	158,837		25.9
Midwest	171,821		20.5		114,473		18.7
Northeast	160,601		19.2
Mid-Atlantic					65,139		10.6
Southeast					54,245		8.9
Southwest	145,508		17.4		50,875		8.3
Southeast	110,384		13.2
Mid-Atlantic	74,948		9.0
Total	$	835,903	100.0	%	$	612,500	100.0	%

The following table shows the portfolio composition by geographic location at fair value at September 30, ~~2017~~2018 (dollars in thousands):


	Fair Value		Percentage		Fair Value		Percentage
Northeast					$	167,803	25.6	%
West					155,519		23.7
Midwest	$	188,957	22.6	%	118,291		18.1
Southeast					76,676		11.7
Mid-Atlantic					71,962		11.0
Southwest	152,883		18.3		65,179		9.9
Northeast	152,662		18.2
Southeast	152,469		18.2
West	133,190		15.9
Mid-Atlantic	56,830		6.8
Total	$	836,991	100.0	%	$	655,430	100.0	%

Transactions With Affiliated/Controlled Companies

~~During the three months ended December 31, 2017 and 2016, the~~The Company had investments in portfolio companies designated as Affiliated Investments and Controlled Investments under the 1940 Act. Transactions with Affiliated Investments and Controlled Investments during the six months ended March 31, 2019 and 2018 were as ~~follows (prior period table modified to conform to the current period presentation):~~ follows:


Name of Investment⁽³⁾	Type of Investment	Fair Value at September 30, 2017		Purchases/(Sales) of or Advances/(Distributions)		Transfers In/(Out) of Affiliates		Unrealized Gain/(Loss)			Realized Gain/(Loss)		Fair Value at December 31, 2017		Income Earned		Type of Investment	Fair Value at September 30, 2018			Purchases/(Sales) of or Advances/(Distributions)			Transfers In/(Out) of Affiliates		Unrealized Gain/(Loss)			Realized Gain/(Loss)		Fair Value at March 31, 2019			Income Earned

Affiliated Investments
AAR Intermediate Holdings, LLC	Senior Secured First Lien Term Loan A	$	8,984,232	$	—	$	—	$	—		$	—	$	8,984,232	$	145,390
1888 Industrial Services, LLC																	Senior Secured First Lien Term Loan A	$	8,984,232		$	—		$	—	$	—		$	—	$	8,984,232		$	344,796
	Senior Secured First Lien Term Loan B	19,746,290		623,111		—		(143,791		)	—		20,225,610		626,037		Senior Secured First Lien Term Loan B	19,725,217			734,779			—		(7,334,001		)	—		13,125,995			759,184
	Revolving Credit Facility	—		539,054		—		—			—		539,054		4,333		Revolving Credit Facility	3,593,693			(539,054		)	—		—			—		3,054,639			112,249
	Equity	—		—		—		—			—		—		—		Equity	—			—			—		—			—		—			—
Access Media Holdings, LLC	Senior Secured First Lien Term Loan	8,340,525		105,859		—		—			—		8,446,384		212,657		Senior Secured First Lien Term Loan	5,876,279			—			—		(510,963		)	—		5,365,316			—
	Preferred Equity Series A	—		—		—		—			—		—		—		Preferred Equity Series A	—			—			—		—			—		—			—
	Preferred Equity Series AA	—		—		—		—			—		—		—		Preferred Equity Series AA	—			—			—		—			—		—			—
	Preferred Equity Series AAA	43,200		169,600		—		(64,000		)	—		148,800		—		Preferred Equity Series AAA	(172,800		)	72,000			—		—			—		(100,800		)	—
	Equity	—		—		—		—			—		—		—		Equity	—			—			—		—			—		—			—
Brantley Transportation LLC	Senior Secured First Lien Term Loan	7,719,520		—		—		236,534			—		7,956,054		—		Senior Secured First Lien Term Loan	2,882,800			—			—		(1,248,260		)	—		1,634,540			—
	Senior Secured First Lien Delayed Draw Term Loan	668,105		—		—		—			—		668,105		10,716		Senior Secured First Lien Delayed Draw Term Loan	503,105			—			—		—			—		503,105			18,817
	Equity	—		—		—		—			—		—		—		Equity	—			—			—		—			—		—			—
Caddo Investors Holdings 1 LLC																	Equity	2,500,000			20,842			—		194,105			—		2,714,947			(61,927		)
Dynamic Energy Services International LLC																	Senior Secured First Lien Term Loan	—			—			7,824,975		(6,636,810		)	—		1,188,165			—
																	Revolving Credit Facility	—			585,858			1,322,001		—			—		1,907,859			7,542
																	Equity	—			—			—		—			—		—			—

Name of Investment⁽³⁾
Type of Investment Fair Value at September 30, 2017 Purchases/(Sales) of or Advances/(Distributions) Transfers In/(Out) of Affiliates Unrealized Gain/(Loss) Realized Gain/(Loss) Fair Value at December 31, 2017 Income Earned

JFL-NGS Partners, LLC Preferred Equity A-2 30,552,190
—
—
—
—
30,552,190
231,025
Preferred Equity A-1 3,953,700
—
—
—
—
3,953,700
29,896
Equity 63,603
—
—
4,254,525
—
4,318,128
—
US Multifamily, LLC Senior Secured First Lien Term Loan 6,670,000
—
—
—
—
6,670,000
166,750
Equity 3,330,000
—
—
—
—
3,330,000
—
Total Affiliated Investments $ 90,071,365

$ 1,437,624

$ —

$ 4,283,268

$ —

$ 95,792,257

$ 1,426,804

Controlled Investments
Capstone Nutrition Senior Secured First Lien Term Loan 18,002,715
—
—
(1,946,314 ) —
16,056,401
—
Senior Secured First Lien Delayed Draw Term Loan 7,789,760
—
—
(842,169 ) —
6,947,591
—
Equity - Class B and C Units —
—
—
—
—
—
—
Equity - Common Units —
—
—
—
—
—
—
MCC Senior Loan Strategy JV I LLC⁽¹⁾⁽²⁾
Equity 56,137,946
10,675,000
—
592,657
—
67,405,603
1,443,750
NVTN LLC Senior Secured First Lien Term Loan 3,505,990
—
—
—
—
3,505,990
47,284
Senior Secured First Lien Term Loan B 10,604,502
283,651
—
—
—
10,888,153
290,458
Senior Secured First Lien Term Loan C 6,518,046
220,564
—
—
—
6,738,610
226,221
Equity 9,550,922
—
—
—
—
9,550,922
—
OmniVere LLC Senior Secured First Lien Term Loan 24,500,205
—
—
(6,808,667 ) —
17,691,538
—
Senior Secured First Lien Term Loan 1,409,669
620,032
—
—
—
2,029,701
35,366
Unsecured Debt —
—
—
—
—
—
—
Equity —
—
—
—
—
—
—
URT Acquisition Holdings Corporation Senior Secured Second Lien Term Loan 14,966,563
—
—
—
—
14,966,563
382,479
Preferred Equity 5,500,000
350,795
—
—
—
5,850,795
166,472
Equity 12,937,518
—
—
—
—
12,937,518
—
Total Controlled Investments $ 171,423,836

$ 12,150,042

$ —

$ (9,004,493 )
$ —

$ 174,569,385

$ 2,592,030


Name of Investment⁽³⁾		Type of Investment	Fair Value at September 30, 2016		Purchases/(Sales) of or Advances/(Distributions)		Transfers In/(Out) of Affiliates		Unrealized Gain/(Loss)		Realized Gain/(Loss)		Fair Value at December 31, 2016		Income Earned			Type of Investment	Fair Value at September 30, 2018		Purchases/(Sales) of or Advances/(Distributions)			Transfers In/(Out) of Affiliates		Unrealized Gain/(Loss)			Realized Gain/(Loss)			Fair Value at March 31, 2019		Income Earned

Affiliated Investments
JFL-NGS Partners, LLC																		Preferred Equity A-2	31,468,755		—			—		—			—			31,468,755		470,738
																		Preferred Equity A-1	4,072,311		—			—		—			—			4,072,311		60,917
																		Equity	9,825,804		—			—		8,367,519			—			18,193,323		—
JFL-WCS Partners, LLC																		Preferred Equity Class A	1,166,292		69,978			—		—			—			1,236,270		35,641
																		Equity	215,116		—			—		2,539,925			—			2,755,041		—
Path Medical, LLC																		Senior Secured First Lien Term Loan	—		856,808			7,821,824		(182,471		)	—			8,496,161		538,508
																		Senior Secured First Lien Term Loan A	—		281,574			2,808,500		(162,846		)	—			2,927,228		171,909
																		Senior Secured First Lien Term Loan C	—		688,926			—		—			—			688,926		36,208
																		Equity	—		—			499,751		(499,751		)	—			—		—
US Multifamily, LLC		Senior Secured First Lien Term Loan	6,670,000		—		—		—		—		6,670,000		166,750			Senior Secured First Lien Term Loan	6,670,000		—			—		—			—			6,670,000		333,500
		Equity	3,330,000		—		—		—		—		3,330,000		—			Equity	3,330,000		—			—		—			—			3,330,000		—
Total Affiliated Investments	Total Affiliated Investments		$	10,000,000	$	—	$	—	$	—	$	—	$	10,000,000	$	166,750	Total Affiliated Investments		$	100,640,804	$	2,771,711		$	20,277,051	$	(5,473,553	)	$	—		$	118,216,013	$	2,828,082

Controlled Investments
Capstone Nutrition																		Senior Secured First Lien Term Loan	$	12,657,663	$	—		$	—	$	(2,916,918	)	$	—		$	9,740,745	$	—
																		Senior Secured First Lien Delayed Draw Term Loan	5,692,096		—			—		(1,311,725		)	—			4,380,371		—
																		Senior Secured First Lien Incremental Delayed Draw	2,242,721		1,484,319			—		—			—			3,727,040		204,361
																		Equity - Class B and C Units	—		—			—		—			—			—		—
																		Equity - Common Units	—		—			—		—			—			—		—
MCC Senior Loan Strategy JV I LLC⁽¹⁾⁽²⁾																		Equity	78,370,891		—			—		(2,961,191		)	—			75,409,700		4,025,000
NVTN LLC																		Senior Secured First Lien Term Loan	4,005,990		250,000			—		—			—			4,255,990		132,703
																		Senior Secured First Lien Term Loan B	11,837,367		467,729			—		(2,912,368		)	—			9,392,728		356,304
																		Senior Secured First Lien Term Loan C	7,479,397		90,657			—		(7,570,054		)	—			—		—
																		Equity	—		—			—		—			—			—		—
OmniVere, LLC																		Senior Secured First Lien Term Loan	—		—			—		22,880,599			(22,880,599		)	—		(2,822		)
																		Senior Secured First Lien Term Loan	1,374,048		661,225			—		2,963,001			(4,998,274		)	—		—
																		Unsecured Debt	—		—			—		22,727,575			(22,727,575		)	—		(2,205		)
																		Equity	—		—			—		872,698			(872,698		)	—		—
TPG Plastics LLC																		Senior Secured Second Lien Term Loan	401,346		(28,295		)	—		—			—			373,051		14,925
																		Unsecured Debt	360,000		(12,780		)	—		—			(59,410		)	287,810		13,667
																		Unsecured Debt	646,996		(646,996		)	—		—			—			—		2,163

Name of Investment⁽³⁾
Type of Investment Fair Value at September 30, 2016 Purchases/(Sales) of or Advances/(Distributions) Transfers In/(Out) of Affiliates Unrealized Gain/(Loss) Realized Gain/(Loss) Fair Value at December 31, 2016 Income Earned

Controlled Investments

AAR Intermediate Holdings, LLC Senior Secured First Lien Term Loan A $ 8,984,232
$ —
$ —
$ —
$ —
$ 8,984,232
$ 137,758
Senior Secured First Lien Term Loan B 14,889,405
—
—
—
—
14,889,405
548,806
Revolving Credit Facility —
431,243
—
—
—
431,243
8,292
Equity —
—
—
—
—
—
Capstone Nutrition Senior Secured First Lien Term Loan 14,615,564
—
—
504,446
—
15,120,010
—
Senior Secured First Lien Delayed Draw Term Loan 6,324,142
—
—
218,274
—
6,542,416
—
Equity - Class B and C Units —
—
—
—
—
—
—
Equity - Common Units —
—
—
—
—
—
—
Lydell Jewelry Design Studio, LLC Senior Secured First Lien Term Loan 5,707,522
—
—
108,890
—
5,816,412
—
Senior Secured First Lien Delayed Draw Term Loan 1,500,000
650,000
—
—
—
2,150,000
29,611
Equity —
—
—
—
—
—

Equity —
—
—
—
—
—

NVTN LLC Senior Secured First Lien Term Loan —
—
1,525,201
—
—
1,525,201
17,837
Senior Secured First Lien Term Loan B —
—
10,604,502
—
—
10,604,502
149,647
Senior Secured First Lien Term Loan C —
—
6,518,046
—
—
6,518,046
113,530
Equity —
—
9,550,922
—
—
9,550,922
—
MCC Senior Loan Strategy JV I LLC⁽¹⁾⁽²⁾
Equity 31,252,416
7,262,500
—
903,299
—
39,418,215
568,750
OmniVere LLC Senior Secured First Lien Term Loan 22,360,258
553,494
—
(25,227 ) —
22,888,525
828,405
Unsecured Debt 11,336,861
1,972,687
—
(833,855 ) —
12,475,693
—
Equity —
—
—
—
—
—
—
United Road Towing, Inc Senior Secured Second Lien Term Loan 18,725,607
470,367
—
—
—
19,195,974
480,832
Preferred Equity Class C 1,186,268
9,554
—
(9,554 ) —
1,186,268
—
Preferred Equity Class C-1 —
—
—
—
—
—
—
Preferred Equity Class A-2 —
2,371
—
(2,371 ) —
—
—
Equity —
—
—
—
—
—
—
Total Controlled Investments $ 136,882,275
$ 11,352,216
$ 28,198,671
$ 863,902
$ —
$ 177,297,064
$ 2,883,468



Name of Investment⁽³⁾	Type of Investment	Fair Value at September 30, 2018		Purchases/(Sales) of or Advances/(Distributions)		Transfers In/(Out) of Affiliates		Unrealized Gain/(Loss)			Realized Gain/(Loss)			Fair Value at March 31, 2019		Income Earned

	Equity	2,670,154		646,996		—		(1,672,398		)	—			1,644,752		—
URT Acquisition Holdings Corporation	Senior Secured Second Lien Term Loan	15,112,754		2,318,082		—		—			—			17,430,836		862,128
	Preferred Equity	5,850,795		702,095		—		—			—			6,552,890		371,091
	Equity	12,937,518		—		—		(3,179,728		)	—			9,757,790		—
Total Controlled Investments		$	161,639,736	$	5,933,032	$	—	$	26,919,491		$	(51,538,556	)	$	142,953,703	$	5,977,315



Name of Investment⁽³⁾	Type of Investment	Fair Value at September 30, 2017		Purchases/(Sales) of or Advances/(Distributions)		Transfers In/(Out) of Affiliates		Unrealized Gain/(Loss)			Realized Gain/(Loss)		Fair Value at March 31, 2018			Income Earned

Affiliated Investments
1888 Industrial Services, LLC	Senior Secured First Lien Term Loan A	$	8,984,232	$	—	$	—	$	—		$	—	$	8,984,232		$	295,637
	Senior Secured First Lien Term Loan B	19,746,290		1,251,359		—		(289,649		)	—		20,708,000			1,273,390
	Revolving Credit Facility	—		1,437,477		—		—			—		1,437,477			21,227
	Equity	—		—		—		—			—		—			—
Access Media Holdings, LLC	Senior Secured First Lien Term Loan	8,340,525		105,860		—		(2,570,259		)	—		5,876,126			212,657
	Preferred Equity Series A	—		—		—		—			—		—			—
	Preferred Equity Series AA	—		—		—		—			—		—			—
	Preferred Equity Series AAA	43,200		276,800		—		(480,000		)	—		(160,000		)	—
	Equity	—		—		—		—			—		—			—
Brantley Transportation LLC	Senior Secured First Lien Term Loan	7,719,520		—		—		(1,560,220		)	—		6,159,300			—
	Senior Secured First Lien Delayed Draw Term Loan	668,105		—		—		—			—		668,105			21,731
	Equity	—		—		—		—			—		—			—
JFL-NGS Partners, LLC	Preferred Equity A-2	30,552,190		—		—		—			—		30,552,190			457,027
	Preferred Equity A-1	3,953,700		—		—		—			—		3,953,700			59,143
	Equity	63,603		—		—		4,254,525			—		4,318,128			—
JFL-WCS Partners, LLC	Preferred Equity Class A	—		1,166,292		—		—			—		1,166,292			12,829
	Equity	—		129,588		—		—			—		129,588			—
US Multifamily, LLC	Senior Secured First Lien Term Loan	6,670,000		—		—		—			—		6,670,000			333,500
	Equity	3,330,000		—		—		—			—		3,330,000			—
Total Affiliated Investments		$	90,071,365	$	4,367,376	$	—	$	(645,603	)	$	—	$	93,793,138		$	2,687,141

Controlled Investments
Capstone Nutrition	Senior Secured First Lien Term Loan	$	18,002,715	$	—	$	—	$	(5,844,817	)	$	—	$	12,157,898		$	—
	Senior Secured First Lien Delayed Draw Term Loan	7,789,760		—		—		(2,529,048		)	—		5,260,712			—



Name of Investment⁽³⁾	Type of Investment	Fair Value at September 30, 2017		Purchases/(Sales) of or Advances/(Distributions)		Transfers In/(Out) of Affiliates		Unrealized Gain/(Loss)			Realized Gain/(Loss)		Fair Value at March 31, 2018		Income Earned

	Senior Secured First Lien Incremental Delayed Draw	—		2,079,229		—		—			—		2,079,229		59,422
	Equity - Class B and C Units	—		—		—		—			—		—		—
	Equity - Common Units	—		—		—		—			—		—		—
MCC Senior Loan Strategy JV I LLC⁽¹⁾⁽²⁾	Equity	56,137,946		14,000,000		—		723,614			—		70,861,560		3,084,375
NVTN LLC	Senior Secured First Lien Term Loan	3,505,990		500,000		—		—			—		4,005,990		99,656
	Senior Secured First Lien Term Loan B	10,604,502		578,617		—		—			—		11,183,119		591,168
	Senior Secured First Lien Term Loan C	6,518,046		450,383		—		—			—		6,968,429		460,614
	Equity	9,550,922		—		—		—			—		9,550,922		—
OmniVere LLC	Senior Secured First Lien Term Loan	24,500,205		—		—		(10,808,466		)	—		13,691,739		—
	Senior Secured First Lien Term Loan	1,409,669		1,732,203		—		—			—		3,141,872		82,858
	Unsecured Debt	—		—		—		—			—		—		—
	Equity	—		—		—		—			—		—		—
URT Acquisition Holdings Corporation	Senior Secured Second Lien Term Loan	14,966,563		—		—		—			—		14,966,563		756,643
	Preferred Equity	5,500,000		350,795		—		—			—		5,850,795		339,591
	Equity	12,937,518		—		—		—			—		12,937,518		—
Total Controlled Investments		$	171,423,836	$	19,691,227	$	—	$	(18,458,717	)	$	—	$	172,656,346	$	5,474,327

(1)

The Company and Great American Life Insurance Company (“GALIC”) are the members of MCC Senior Loan Strategy JV I LLC (“MCC JV”), a joint venture formed as a Delaware limited liability company that is not consolidated by either member for financial reporting purposes. The members of MCC JV make capital contributions as investments by MCC JV are completed, and all portfolio and other material decisions regarding MCC JV must be submitted to MCC JV’s board of managers, which is comprised of an equal number of members appointed by each of the Company and GALIC. Approval of MCC JV’s board of managers requires the unanimous approval of a quorum of the board of managers, with a quorum consisting of equal representation of members appointed by each of the Company and GALIC. Because management of MCC JV is shared equally between the Company and GALIC, the Company does not have operational control over the MCC JV for purposes of the 1940 Act or otherwise.


(2)	Amount of income earned represents distributions from MCC JV to the Company and is a component of dividend income, net of provisional taxes in the Consolidated Statements of Operations.


(3)	The par amount and additional detail are shown in the consolidated schedule of investments.

Purchases/(sales) of or advances to/(distributions) from Affiliated Investments and Controlled Investments represent the proceeds from sales and settlements of investments, purchases, originations and participations, investment increases due to PIK interest as well as net amortization of premium/(discount) on investments and are included in the purchases and sales presented on the Consolidated Statements of Cash Flows for the ~~three~~six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016.~~2018. Transfers in/(out) of Affiliated Investments and Controlled Investments represent the fair value for the month an investment became or was removed as an Affiliated Investment or a Controlled Investment. Income received from Affiliated Investments and Controlled Investments is included in total investment income on the Consolidated Statements of Operations for the three and six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016.~~2018.

Loan Participation Sales

The Company may sell portions of its investments via participation agreements to a managed account, managed by an affiliate and non-affiliate of the Company. ~~At December~~As of March 31, ~~2017~~2019, there were ~~eight~~four participation agreements outstanding with an aggregate fair value of ~~$118.8~~$19.3 million. AtAs of September 30, ~~2017,~~2018, there were ~~eight~~four participation agreements outstanding with an aggregate fair value of ~~$124.5~~$22.0 million. The transfer of the participated portion of the investments met the criteria set forth in ASC 860, Transfers and Servicing for treatment as a sale. In each case, the Company’s loan participation agreements satisfy the following conditions:

transferred investments have been isolated from the Company, -and put presumptively beyond the reach of the Company and its creditors, even in bankruptcy or other receivership,

each participant has the right to pledge or exchange the transferred investments it received, and no condition both constrains the participant from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the Company; and

the Company, its consolidated affiliates or its agents do not maintain effective control over the transferred investments through either: (i) an agreement that entitles and/or obligates the Company to repurchase or redeem the assets before maturity, or (ii) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call.

Such investments where the Company has retained proportionate interests are included in the consolidated schedule of investments. All of these investments are classified within Level 3 of the fair value hierarchy, as defined in Note 4.

During the three and six months ended ~~December~~March 31, ~~2017 and 2016,~~2019, the Company collected interest and principal payments on behalf of the participant in aggregate amounts of $1.0 million and $2.0 million, respectively. During the three and ~~$6.0~~six months ended March 31, 2018, the Company collected interest and principal payments on behalf of the participant in aggregate amounts of $2.3 million and $4.2 million, respectively. Under the terms of the participation agreements, the Company will collect and remit periodic payments to the participant equal to the participant's proportionate share of any principal and interest payments received by the Company from the underlying investee companies.

MCC Senior Loan Strategy JV I LLC

On March 27, 2015, the Company and GALIC entered into a limited liability company operating agreement to co-manage MCC JV. All portfolio and other material decisions regarding MCC JV must be submitted to MCC JV’s board of managers, which is comprised of four members, two of whom are selected by the Company and the other two of whom are selected by GALIC. The Company has concluded that it does not operationally control MCC JV. As the Company does not operationally control MCC JV, it does not consolidate the operations of MCC JV within the consolidated financial statements. As a practical expedient, the Company uses NAV to determine the value of its investment in MCC JV; therefore, this investment has been presented as a reconciling item within the fair value hierarchy (see Note 4). Investments held by MCC JV are measured at fair value using the same valuation methodologies as described in Note 2.

As of ~~December~~March 31, ~~2017,~~2019, MCC JV had total capital commitments of $100.0 million, with the Company providing $87.5 million and GALIC providing $12.5 million. Approximately ~~$76.3~~$89.8 million was funded as of ~~December~~March 31, ~~2017~~2019 relating to these commitments, of which ~~$66.8~~$78.6 million was from the Company. As of ~~December~~March 31, ~~2017,~~2019, MCC JV’s board of managers had approved advances of capital of up to ~~$6.7~~$0.3 million of the remaining capital commitments, of which ~~$5.9~~$0.2 million is from the Company.

On August 4, 2015, MCC JV entered into a senior secured revolving credit facility (the “JV Facility”) led by Credit Suisse, AG (“CS”) with commitments of $100 million subject to leverage and borrowing base restrictions. On March 30, 2017, the Company amended the JV Facility previously administered by CS and facilitated the assignment of all rights and obligations of CS under the JV Facility to Deutsche Bank AG, New York Branch, (“DB”) and increased the total loan commitments to $200 million. The JV Facility bears interest at a rate of LIBOR (with no minimum) + 2.50% per annum. ~~The~~On March 29, 2019, the JV Facility reinvestment period ~~ends on~~was extended to June 28, 2019 from March 30, ~~2019 and the~~2019. The stated maturity date iswas not impacted by the JV Facility reinvestment period extension and remained March 30, 2022. As of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017,~~2018, there was approximately ~~$153.4 million and $130.5~~$179.3 million outstanding under the JV Facility, respectively.

At ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017,~~2018, MCC JV had total investments at fair value of ~~$210.4~~$254.8 million and ~~$184.2~~$251.9 million, respectively. As of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017,~~2018, MCC JV’s portfolio was comprised of senior secured first lien term loans to 5060 and 4656 borrowers, respectively. As of ~~December~~March 31, ~~2017 and~~2019, MCC JV did not have any investments on non-accrual status. As of September 30, ~~2017,~~2018, certain investments in one portfolio company held by MCC JV were on non-accrual status.

Below is a summary of MCC JV’s portfolio, excluding equity investments, followed by a listing of the individual investments in MCC JV’s portfolio as of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017:~~2018:


	December 31, 2017			September 30, 2017			March 31, 2019			September 30, 2018
Senior secured loans⁽¹⁾	$	213,650,199		$	187,473,188		$	260,138,993		$	256,547,053
Weighted average current interest rate on senior secured loans⁽²⁾	6.90		%	6.69		%	7.58		%	7.39		%
Number of borrowers in MCC JV	50			46			60			56
Largest loan to a single borrower⁽¹⁾	$	11,289,143		$	11,346,929		$	11,000,215		$	11,115,786
Total of five largest loans to borrowers⁽¹⁾	$	44,597,092		$	44,015,117		$	46,773,360		$	47,982,607


(1)	At par ~~value~~value.


(2)	Computed as the (a) annual stated interest rate on accruing senior secured loans, divided by (b) total senior secured loans at par.

MCC JV Loan Portfolio as of ~~December~~March 31, ~~2017~~2019

(unaudited)

Company Industry Type of Investment Maturity
Par
Amount
Cost
Fair
Value⁽²⁾

% of
Net Assets⁽⁴⁾

4 Over International, LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾
6/7/2022 11,289,143
11,289,143
11,289,143
14.7 %
11,289,143
11,289,143
11,289,143

AccentCare, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾
3/3/2022 5,761,669
5,735,654
5,761,669
7.5 %
5,761,669
5,735,654
5,761,669

Acrisure, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾
11/22/2023 2,965,069
2,957,868
2,957,656
3.8 %
2,965,069
2,957,868
2,957,656

Amplify Snack Brands, Inc. Beverage & Food
Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾
9/4/2023 1,807,004
1,792,346
1,797,247
2.3 %
1,807,004
1,792,346
1,797,247

Apco Holdings, Inc. Automotive
Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾
1/31/2022 3,437,331
3,367,013
3,437,331
4.5 %
3,437,331
3,367,013
3,437,331

API Technologies Corp. Aerospace and Defense
Senior Secured First Lien Term Loan (LIBOR + 6.50%, 1.00% LIBOR Floor)⁽¹⁾
4/22/2022 2,932,500
2,890,142
2,932,500
3.8 %
2,932,500
2,890,142
2,932,500

Associated Asphalt Partners, LLC Construction & Building
Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾
4/5/2024 991,786
987,339
991,786
1.3 %
991,786
987,339
991,786

Avantor, Inc. Chemicals, Plastics and Rubber
Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor)⁽¹⁾
11/21/2024 7,250,000
7,143,270
7,280,450
9.5 %
7,250,000
7,143,270
7,280,450

Blount International, Inc. Capital Equipment
Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾
4/12/2023 2,375,000
2,369,269
2,398,750
3.1 %
2,375,000
2,369,269
2,398,750

Canyon Valor Companies, Inc. Media: Diversified & Production
Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾
6/16/2023 997,500
995,170
1,007,475
1.3 %
997,500
995,170
1,007,475

Cardenas Markets LLC Retail
Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor)⁽¹⁾
11/29/2023 5,445,000
5,399,007
5,445,000
7.1 %
5,445,000
5,399,007
5,445,000

CD&R TZ Purchaser, Inc Services: Consumer
Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾
7/21/2023 3,456,250
3,414,831
3,456,250
4.5 %
3,456,250
3,414,831
3,456,250



Company	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value⁽²⁾		% of Net Assets⁽³⁾

4Over International, LLC	Media: Advertising, Printing & Publishing	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	6/7/2022	$	11,000,215	$	11,000,215	$	10,793,411	12.5	%
				11,000,215		11,000,215		10,793,411

Acrisure, LLC	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾	11/22/2023	2,927,913		2,922,305		2,905,368		3.4	%
				2,927,913		2,922,305		2,905,368

Avantor, Inc.	Wholesale	Senior Secured First Lien Term Loan (LIBOR + 3.75%, 1.00% LIBOR Floor)⁽¹⁾	11/21/2024	2,687,637		2,663,037		2,689,787		3.1	%
				2,687,637		2,663,037		2,689,787

BW NHHC HOLDCO INC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	5/15/2025	5,208,013		5,139,266		4,999,693		5.8	%
				5,208,013		5,139,266		4,999,693

Callaway Golf Company	Consumer Goods: Durable	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	2/2/2026	2,967,563		2,910,052		2,987,445		3.5	%
				2,967,563		2,910,052		2,987,445

Cardenas Markets LLC	Retail	Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor)⁽¹⁾	11/29/2023	5,376,250		5,340,408		5,231,091		6.1	%
				5,376,250		5,340,408		5,231,091

CD&R TZ Purchaser, Inc.	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	7/21/2023	3,410,627		3,378,906		3,328,431		3.9	%
				3,410,627		3,378,906		3,328,431

CHA Consulting, Inc.	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	4/10/2025	1,360,956		1,355,082		1,357,554		1.6	%
				1,360,956		1,355,082		1,357,554

Covenant Surgical Partners, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	10/4/2024	9,882,374		9,862,818		9,783,550		11.4	%
				9,882,374		9,862,818		9,783,550

CT Technologies Intermediate Holdings, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾	12/1/2021	4,153,477		4,074,396		3,525,472		4.1	%
				4,153,477		4,074,396		3,525,472

Deliver Buyer, Inc.	Capital Equipment	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	5/1/2024	2,025,486		2,013,504		2,012,928		2.3	%
				2,025,486		2,013,504		2,012,928

Envision Healthcare	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 3.75%, 1.00% LIBOR Floor)⁽¹⁾	10/10/2025	1,970,063		1,901,655		1,840,432		2.1	%
				1,970,063		1,901,655		1,840,432

GC EOS Buyer, Inc.	Automotive	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	8/1/2025	4,462,485		4,398,136		4,462,486		5.2	%
				4,462,485		4,398,136		4,462,486

Company Industry Type of Investment Maturity
Par
Amount
Cost
Fair
Value⁽²⁾

% of
Net Assets⁽⁴⁾

Covenant Surgical Partners, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾
10/4/2024 8,117,949
8,093,997
8,117,949
10.6 %
8,117,949
8,093,997
8,117,949

CP OPCO, LLC Services: Consumer
Senior Secured First Lien Term Loan B (ABR + 5.50% PIK, 4.50% ABR Floor)⁽¹⁾⁽³⁾
4/1/2019 224,970
213,451
59,729
0.1 %

Senior Secured First Lien Term Loan C (ABR + 8.50% PIK, 4.50% ABR Floor)⁽¹⁾⁽³⁾
4/1/2019 1,655,407
717,016
—
0.0 %

Senior Secured First Lien Term Loan D (ABR + 7.00% PIK, 4.50% ABR Floor)⁽¹⁾⁽³⁾
4/1/2019 1,038,290
—
—
0.0 %

Revolving Credit Facility (ABR + 3.50% Cash, 4.25% ABR Floor)⁽¹⁾
4/1/2019 —
—
—
0.0 %
Common Stock (41 Units) 4/1/2019 —
—
—
0.0 %
2,918,667
930,467
59,729

CSP Technologies North America, LLC Containers, Packaging and Glass
Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾
1/31/2022 2,474,374
2,474,374
2,474,374
3.2 %
2,474,374
2,474,374
2,474,374

CT Technologies Intermediate Holdings, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾
12/1/2021 4,207,418
4,089,965
4,207,418
5.5 %
4,207,418
4,089,965
4,207,418

DigiCert, Inc. High Tech Industries
Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾
10/31/2024 4,500,000
4,478,083
4,545,000
5.9 %
4,500,000
4,478,083
4,545,000

Elite Comfort Solutions, Inc. Chemicals, Plastics and Rubber
Senior Secured First Lien Term Loan (LIBOR + 6.50%, 1.00% LIBOR Floor)⁽¹⁾
1/15/2021 5,734,863
5,734,863
5,734,863
7.5 %
5,734,863
5,734,863
5,734,863

Evo Payments International, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor)⁽¹⁾
12/22/2023 3,473,750
3,443,885
3,496,677
4.5 %
3,473,750
3,443,885
3,496,677

GK Holdings, Inc. Services: Business
Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾
1/20/2021 2,961,832
2,950,966
2,901,114
3.8 %
2,961,832
2,950,966
2,901,114

Global Eagle Entertainment Inc. Telecommunications
Senior Secured First Lien Term Loan (LIBOR + 7.50%, 1.00% LIBOR Floor)⁽¹⁾
1/6/2023 4,147,500
4,082,934
4,147,500
5.4 %
4,147,500
4,082,934
4,147,500

Golden West Packaging Group LLC Forest Products & Paper
Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾
6/20/2023 6,691,375
6,691,375
6,691,375
8.7 %
6,691,375
6,691,375
6,691,375

High Ridge Brands Co. Consumer Goods: Non-Durable
Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾
6/30/2022 1,846,875
1,825,286
1,846,875
2.4 %
1,846,875
1,825,286
1,846,875

��



Company	Industry	Type of Investment	Maturity	Par Amount	Cost	Fair Value⁽²⁾	% of Net Assets⁽³⁾

GK Holdings, Inc.	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	1/20/2021	2,923,664	2,917,311	2,616,387	3.0	%
				2,923,664	2,917,311	2,616,387

Glass Mountain Pipeline Holdings, LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	12/23/2024	4,925,250	4,910,059	4,777,493	5.5	%
				4,925,250	4,910,059	4,777,493

Golden West Packaging Group LLC	Forest Products & Paper	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	6/20/2023	4,212,342	4,212,342	4,212,342	4.9	%
				4,212,342	4,212,342	4,212,342

High Ridge Brands Co.	Consumer Goods: Non-Durable	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	6/30/2022	1,823,438	1,808,029	1,681,027	2.0	%
				1,823,438	1,808,029	1,681,027

Highline Aftermarket Acquisitions, LLC	Automotive	Senior Secured First Lien Term Loan (LIBOR + 3.50%, 1.00% LIBOR Floor)⁽¹⁾	4/26/2025	4,086,764	4,075,007	3,928,607	4.6	%
				4,086,764	4,075,007	3,928,607

The Imagine Group, LLC	Media: Advertising, Printing & Publishing	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾	6/21/2022	7,840,000	7,789,003	7,340,592	8.5	%
				7,840,000	7,789,003	7,340,592

Infogroup, Inc.	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	4/3/2023	4,900,000	4,867,047	4,831,400	5.6	%
				4,900,000	4,867,047	4,831,400

Intermedia Holdings, Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	7/21/2025	2,992,500	2,965,302	2,959,283	3.4	%
				2,992,500	2,965,302	2,959,283

Isagenix International, LLC	Consumer Goods - Durable	Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor)⁽¹⁾	6/16/2025	2,863,438	2,849,177	2,782,688	3.2	%
				2,863,438	2,849,177	2,782,688

Jackson Hewitt Tax Services Inc.	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 6.25%, 1.00% LIBOR Floor)⁽¹⁾	4/20/2023	5,925,000	5,925,000	5,925,000	6.9	%
				5,925,000	5,925,000	5,925,000

Keystone Acquisition Corp.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	5/1/2024	6,194,142	6,109,018	5,904,256	6.9	%
				6,194,142	6,109,018	5,904,256

KNB Holdings Corporation	Consumer Goods: Durable	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	4/26/2024	4,935,460	4,863,756	4,854,519	5.6	%
				4,935,460	4,863,756	4,854,519

LifeMiles Ltd.	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	8/18/2022	5,121,795	5,102,862	5,096,186	5.9	%
				5,121,795	5,102,862	5,096,186

Company Industry Type of Investment Maturity
Par
Amount
Cost
Fair
Value⁽²⁾

% of
Net Assets⁽⁴⁾

Highline Aftermarket Acquisitions, LLC Automotive
Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾
3/18/2024 3,102,770
3,088,949
3,102,770
4.0 %
3,102,770
3,088,949
3,102,770

Imagine! Print Solutions, LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾
6/21/2022 7,940,000
7,868,404
7,860,600
10.2 %
7,940,000
7,868,404
7,860,600

Infogroup, Inc. Services: Business
Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾
4/3/2023 4,962,500
4,918,712
4,941,161
6.4 %
4,962,500
4,918,712
4,941,161

Keystone Acquisition Corp. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾
5/1/2024 6,272,748
6,165,433
6,304,111
8.2 %
6,272,748
6,165,433
6,304,111

KNB Holdings Corporation Consumer Goods: Durable
Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾
4/26/2024 6,459,375
6,342,525
6,475,523
8.4 %
6,459,375
6,342,525
6,475,523

LegalZoom.com, Inc. Services: Business
Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾
11/21/2024 2,000,000
1,980,371
1,980,000
2.6 %
2,000,000
1,980,371
1,980,000

LifeMiles Ltd. Services: Consumer
Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾
8/18/2022 4,875,000
4,829,405
4,826,250
6.3 %
4,875,000
4,829,405
4,826,250

Lighthouse Network, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾
11/29/2024 10,000,000
9,950,757
9,950,000
12.9 %
10,000,000
9,950,757
9,950,000

Manna Pro Products, LLC Consumer Goods: Non-Durable
Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾
12/8/2023 3,083,333
3,083,333
3,083,333
4.1 %
3,083,333
3,083,333
3,083,333

MB Aerospace ACP Holdings II Corp. Aerospace and Defense
Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾
12/15/2022 5,150,539
5,116,917
5,150,539
6.7 %
5,150,539
5,116,917
5,150,539

New Media Holdings II LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term Loan (LIBOR + 6.25%, 1.00% LIBOR Floor)⁽¹⁾
7/14/2022 2,924,991
2,924,991
2,924,991
3.8 %
2,924,991
2,924,991
2,924,991

Peraton Corp. Aerospace and Defense
Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾
4/29/2024 4,975,000
4,952,439
4,950,125
6.4 %
4,975,000
4,952,439
4,950,125

PetroChoice Holdings, Inc. Chemicals, Plastics and Rubber
Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾
8/19/2022 4,949,367
4,949,367
4,949,367
6.4 %
4,949,367
4,949,367
4,949,367



Company	Industry	Type of Investment	Maturity	Par Amount	Cost	Fair Value⁽²⁾	% of Net Assets⁽³⁾

Loparex International B.V.	Containers, Packaging and Glass	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾	4/11/2025	6,616,667	6,588,086	6,576,967	7.6	%
				6,616,667	6,588,086	6,576,967

Manna Pro Products, LLC	Consumer Goods: Non-Durable	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	12/8/2023	3,044,792	3,044,792	2,908,888	3.4	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	12/8/2023	376,167	376,167	358,469	0.4	%
				3,420,959	3,420,959	3,267,357

Midcoast Energy, LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	8/1/2025	3,980,000	3,943,910	3,953,334	4.6	%
				3,980,000	3,943,910	3,953,334

New Media Holdings II LLC	Media: Advertising, Printing & Publishing	Senior Secured First Lien Term Loan (LIBOR + 6.25%, 1.00% LIBOR Floor)⁽¹⁾	7/14/2022	2,459,274	2,455,422	2,437,878	2.8	%
				2,459,274	2,455,422	2,437,878

NGS US Finco, LLC	Capital Equipment	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾	8/21/2025	2,992,500	2,978,599	2,977,538	3.5	%
				2,992,500	2,978,599	2,977,538

Northern Star Industries, Inc.	Capital Equipment	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾	3/28/2025	4,207,500	4,189,398	4,042,566	4.7	%
				4,207,500	4,189,398	4,042,566

Nuvei Technologies Corp.	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 3.50%, 1.00% LIBOR Floor)⁽¹⁾	9/25/2025	449,024	449,024	381,603	0.4	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 3.50%, 1.00% LIBOR Floor)⁽¹⁾	9/25/2025	309,778	309,778	304,402	0.4	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 3.50%, 1.00% LIBOR Floor)⁽¹⁾	9/25/2025	3,859,914	3,824,040	3,802,463	4.4	%
				4,618,716	4,582,842	4,488,468

Peraton Corp.	Aerospace and Defense	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	4/29/2024	3,423,864	3,411,394	3,313,273	3.8	%
				3,423,864	3,411,394	3,313,273

PetroChoice Holdings, Inc.	Chemicals, Plastics and Rubber	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	8/19/2022	6,378,948	6,365,031	6,366,828	7.4	%
				6,378,948	6,365,031	6,366,828

Phoenix Guarantor Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	3/5/2026	5,477,083	5,395,717	5,385,616	6.2	%
				5,477,083	5,395,717	5,385,616

Plaskolite PPC Intermediate II LLC	Chemicals, Plastics & Rubber	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾	12/13/2025	3,241,875	3,179,538	3,236,364	3.8	%
				3,241,875	3,179,538	3,236,364

Port Townsend Holdings Company, Inc.	Forest Products & Paper	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾	4/3/2024	3,057,205	3,031,461	3,057,205	3.5	%
				3,057,205	3,031,461	3,057,205

Company Industry Type of Investment Maturity
Par
Amount
Cost
Fair
Value⁽²⁾

% of
Net Assets⁽⁴⁾

PT Network, LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾
11/30/2021 4,950,094
4,950,191
4,950,094
6.4 %
4,950,094
4,950,191
4,950,094

Quorum Health Corporation Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 6.75%, 1.00% LIBOR Floor)⁽¹⁾
4/29/2022 1,133,768
1,117,333
1,140,911
1.5 %
1,133,768
1,117,333
1,140,911

RESIC Enterprises, LLC Beverage & Food
Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾
11/11/2024 3,750,000
3,731,694
3,731,250
4.9 %
3,750,000
3,731,694
3,731,250

Rough Country, LLC Automotive
Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾
5/25/2023 4,731,098
4,688,066
4,711,227
6.1 %
4,731,098
4,688,066
4,711,227

Salient CRGT Inc. High Tech Industries
Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor)⁽¹⁾
2/28/2022 2,886,607
2,838,152
2,889,494
3.8 %
2,886,607
2,838,152
2,889,494

SCS Holdings I Inc. (Sirius Computer Solutions, Inc.) Wholesale
Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾
10/31/2022 4,431,163
4,389,341
4,420,085
5.7 %
4,431,163
4,389,341
4,420,085

Starfish Holdco, LLC High Tech Industries
Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾
8/16/2024 4,987,500
4,939,831
4,937,625
6.4 %
4,987,500
4,939,831
4,937,625

The Octave Music Group, Inc. Media: Diversified & Production
Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾
5/28/2021 4,961,832
4,961,832
4,961,832
6.4 %
4,961,832
4,961,832
4,961,832

ThoughtWorks, Inc. High Tech Industries
Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾
10/11/2024 4,000,000
3,990,419
3,990,000
5.2 %
4,000,000
3,990,419
3,990,000

United Road Services, Inc Transportation: Cargo
Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾
9/1/2024 3,970,000
3,950,852
3,950,150
5.1 %
3,970,000
3,950,852
3,950,150

VCVH Holding Corp. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾
6/1/2023 2,955,000
2,931,741
2,967,411
3.9 %
2,955,000
2,931,741
2,967,411

VIP Cinema Holdings, Inc. Consumer Goods: Durable
Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾
3/1/2023 472,034
469,991
476,377
0.6 %
472,034
469,991
476,377

Wheels Up Partners LLC Aerospace and Defense
Senior Secured First Lien Term Loan (LIBOR + 8.55%, 1.00% LIBOR Floor)⁽¹⁾
10/15/2020 5,000,000
4,852,786
4,850,000
6.3 %
5,000,000
4,852,786
4,850,000



Company	Industry	Type of Investment	Maturity	Par Amount	Cost	Fair Value⁽²⁾	% of Net Assets⁽³⁾

PT Network, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	11/30/2021	4,900,632	4,900,632	4,799,189	5.6	%
				4,900,632	4,900,632	4,799,189

PVHC Holding Corp	Containers, Packaging and Glass	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾	8/3/2024	1,982,311	1,973,383	1,972,400	2.3	%
				1,982,311	1,973,383	1,972,400

Recorded Books Inc.	Media: Diversified & Production	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	8/29/2025	3,980,000	3,943,345	3,980,000	4.6	%
				3,980,000	3,943,345	3,980,000

Rough Country, LLC	Automotive	Senior Secured First Lien Term Loan (LIBOR + 3.75%, 1.00% LIBOR Floor)⁽¹⁾	5/25/2023	4,954,226	4,931,111	4,924,996	5.7	%
				4,954,226	4,931,111	4,924,996

Safe Fleet Holdings LLC	Automotive	Senior Secured First Lien Term Loan (LIBOR + 3.00%, 1.00% LIBOR Floor)⁽¹⁾	2/3/2025	3,440,250	3,434,432	3,299,544	3.8	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 3.00%, 1.00% LIBOR Floor)⁽¹⁾	2/3/2025	1,342,626	1,290,405	1,311,746	1.5	%
				4,782,876	4,724,837	4,611,290

Salient CRGT Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor)⁽¹⁾	2/28/2022	2,683,036	2,651,479	2,639,839	3.1	%
				2,683,036	2,651,479	2,639,839

SCS Holdings I Inc.	Wholesale	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾	10/30/2022	2,591,152	2,573,004	2,591,152	3.0	%
				2,591,152	2,573,004	2,591,152

Shift4 Payments, LLC	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	11/29/2024	9,875,000	9,834,935	9,754,525	11.3	%
				9,875,000	9,834,935	9,754,525

Sierra Enterprises, LLC	Beverage & Food	Senior Secured First Lien Term Loan (LIBOR + 3.50%, 1.00% LIBOR Floor)⁽¹⁾	11/11/2024	3,938,886	3,928,543	3,899,497	4.5	%
				3,938,886	3,928,543	3,899,497

Simplified Logistics, LLC	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.50%, 1.00% LIBOR Floor)⁽¹⁾	2/27/2022	3,500,000	3,500,000	3,500,000	4.1	%
				3,500,000	3,500,000	3,500,000

SMB Shipping Logistics, LLC	Transportation: Cargo	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor)⁽¹⁾	2/5/2024	301,861	299,209	292,866	0.3	%
		Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor)⁽¹⁾	2/5/2024	2,179,151	2,160,007	2,114,212	2.5	%
				2,481,012	2,459,216	2,407,078

Starfish Holdco, LLC	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	8/16/2024	3,935,250	3,908,561	3,927,773	4.6	%
				3,935,250	3,908,561	3,927,773

Company Industry Type of Investment Maturity
Par
Amount
Cost
Fair
Value⁽²⁾

% of
Net Assets⁽⁴⁾

Z-Medica, LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾
9/29/2022 2,942,625
2,942,625
2,942,625
3.8 %
2,942,625
2,942,625
2,942,625

Total Investments, December 31, 2017 $ 213,650,199
$ 210,063,704
$ 210,395,982
273.5 %



Company	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value⁽²⁾		% of Net Assets⁽³⁾

Syniverse Holdings, Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	3/9/2023	3,955,025		3,923,668		3,622,803		4.2	%
				3,955,025		3,923,668		3,622,803

The KEYW Corporation	Aerospace & Defense	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	5/8/2024	2,697,674		2,686,130		2,697,674		3.1	%
				2,697,674		2,686,130		2,697,674

The Octave Music Group, Inc.	Media: Diversified & Production	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾	5/28/2021	4,371,352		4,371,352		4,340,315		5.0	%
				4,371,352		4,371,352		4,340,315

ThoughtWorks, Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor)⁽¹⁾	10/11/2024	5,708,741		5,696,627		5,687,618		6.6	%
				5,708,741		5,696,627		5,687,618

Tortoise Borrower LLC	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 3.50%, 1.00% LIBOR Floor)⁽¹⁾	1/31/2025	2,450,250		2,440,006		2,450,250		2.8	%
				2,450,250		2,440,006		2,450,250

United Road Services, Inc.	Transportation: Cargo	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	2/2/2024	3,820,000		3,804,853		3,746,274		4.3	%
				3,820,000		3,804,853		3,746,274

Wheels Up Partners LLC	Aerospace & Defense	Senior Secured First Lien Term Loan (LIBOR + 8.55%, 1.00% LIBOR Floor)⁽¹⁾	10/15/2021	4,043,606		3,964,019		3,972,438		4.6	%
				4,043,606		3,964,019		3,972,438

Wok Holdings Inc.	Retail	Senior Secured First Lien Term Loan (LIBOR + 6.50%, 1.00% LIBOR Floor)⁽¹⁾	3/1/2026	6,650,000		6,592,402		6,608,770		7.7	%
				6,650,000		6,592,402		6,608,770

Xebec Global Holdings, LLC	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	2/12/2024	8,175,771		8,175,771		8,175,771		9.5	%
				8,175,771		8,175,771		8,175,771

Z Medica, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	9/29/2022	2,610,750		2,610,750		2,552,791		3.0	%
				2,610,750		2,610,750		2,552,791

Total Investments, March 31, 2019				$	260,138,993	$	258,490,674	$	254,793,265	295.6	%


(1)	Represents the ~~weighted average~~ annual current interest rate as of ~~December~~March 31, ~~2017.~~2019. All interest rates are payable in cash, unless otherwise noted.


(2)	Represents the fair value in accordance with ASC 820 as reported by MCC JV. The determination of such fair value is not included in the Company’s board of directors’ valuation process described elsewhere herein.


(3)	~~This investment was on non-accrual status as of December 31, 2017.~~


~~(4)~~	Percentage is based on MCC JV's net assets of ~~$76,932,383~~$86,182,514 as of ~~December~~March 31, ~~2017.~~2019.

MCC JV Loan Portfolio as of September 30, ~~2017~~2018

Company Industry Type of Investment Maturity
Par
Amount
Cost
Fair
Value⁽²⁾

% of
Net Assets⁽⁴⁾

4Over International, LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾
6/7/2022 11,346,929
11,346,929
11,346,929
17.7 %
11,346,929
11,346,929
11,346,929

AccentCare, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor)⁽¹⁾
10/1/2021 5,006,781
4,978,815
4,981,747
7.8 %
5,006,781
4,978,815
4,981,747

Acrisure, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾
11/22/2023 497,500
496,327
502,475
0.8 %
497,500
496,327
502,475

Amplify Snack Brands, Inc. Beverage & Food
Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾
9/4/2023 1,811,579
1,796,231
1,781,688
2.8 %
1,811,579
1,796,231
1,781,688

Apco Holdings, Inc. Automotive
Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾
1/31/2022 3,508,277
3,432,083
3,508,277
5.5 %
3,508,277
3,432,083
3,508,277

API Technologies Corp. Aerospace and Defense
Senior Secured First Lien Term Loan (LIBOR + 6.50%, 1.00% LIBOR Floor)⁽¹⁾
4/22/2022 2,951,250
2,906,128
2,951,250
4.6 %
2,951,250
2,906,128
2,951,250

Associated Asphalt Partners, LLC Construction & Building
Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾
4/5/2024 997,500
992,848
992,513
1.5 %
997,500
992,848
992,513

Avantor Performance Materials Holdings, Inc. Chemicals, Plastics and Rubber
Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor)⁽¹⁾
3/11/2024 2,985,000
2,978,117
2,985,000
4.7 %
2,985,000
2,978,117
2,985,000

Blount International, Inc. Capital Equipment
Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾
4/12/2023 2,962,500
2,918,684
2,962,500
4.6 %

Senior Secured First Lien Term Loan (ABR + 4.00%, 4.25% ABR Floor)⁽¹⁾
4/12/2023 7,500
7,389
7,500
0.0 %
2,970,000
2,926,073
2,970,000

Canyon Valor Companies, Inc. (fka GTCR Valor Companies, Inc.) Media: Diversified & Production
Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾
6/16/2023 2,475,000
2,468,952
2,499,750
3.9 %
2,475,000
2,468,952
2,499,750

Cardenas Markets LLC Retail
Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor)⁽¹⁾
11/29/2023 5,458,750
5,410,676
5,450,016
8.5 %
5,458,750
5,410,676
5,450,016

CD&R TZ Purchaser, Inc Services: Consumer
Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾
7/21/2023 3,465,000
3,421,596
3,456,338
5.4 %
3,465,000
3,421,596
3,456,338



Company	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value⁽²⁾		% of Net Assets⁽⁴⁾

4Over International, LLC	Media: Advertising, Printing & Publishing	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	6/7/2022	$	11,115,786	$	11,115,786	$	11,115,786	12.4	%
				11,115,786		11,115,786		11,115,786

Acrisure, LLC	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 3.75%, 1.00% LIBOR Floor)⁽¹⁾	11/22/2023	2,942,775		2,936,535		2,942,775		3.3	%
				2,942,775		2,936,535		2,942,775

Avantor, Inc.	Wholesale	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor)⁽¹⁾	11/21/2024	5,528,200		5,455,199		5,583,482		6.2	%
				5,528,200		5,455,199		5,583,482

BW NHHC HOLDCO INC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.00%)⁽¹⁾	5/15/2025	6,284,250		6,184,580		6,170,505		6.9	%
				6,284,250		6,184,580		6,170,505

Cardenas Markets LLC	Retail	Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor)⁽¹⁾	11/29/2023	5,403,750		5,363,877		5,402,669		6.0	%
				5,403,750		5,363,877		5,402,669

CD&R TZ Purchaser, Inc.	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	7/21/2023	3,428,127		3,392,563		3,370,192		3.8	%
				3,428,127		3,392,563		3,370,192

CHA Consulting, Inc.	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	4/10/2025	2,867,813		2,854,412		2,853,473		3.2	%
				2,867,813		2,854,412		2,853,473

Covenant Surgical Partners, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 4.50%)⁽¹⁾	10/4/2024	7,634,615		7,613,184		7,584,990		8.5	%
		Delayed Draw Term Loan (LIBOR + 4.50%)⁽¹⁾	10/4/2024	2,297,782		2,297,782		2,282,846		2.5	%
				9,932,397		9,910,966		9,867,836

CP OPCO, LLC	Services: Consumer	Senior Secured First Lien Term Loan B (ABR + 5.50% PIK, 5.25% ABR Floor)⁽¹⁾⁽³⁾	4/1/2019	242,807		213,451		41,301		0.0	%
		Senior Secured First Lien Term Loan C (ABR + 8.50% PIK, 5.25% ABR Floor)⁽¹⁾⁽³⁾	4/1/2019	1,826,953		717,016		—		0.0	%
		Senior Secured First Lien Term Loan D (ABR + 7.00% PIK, 5.25% ABR Floor)⁽¹⁾⁽³⁾	4/1/2019	1,038,290		—		—		0.0	%
		Equity - 41 Common Units	4/1/2019	—		—		—		0.0	%
				3,108,050		930,467		41,301

CT Technologies Intermediate Holdings, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾	12/1/2021	4,175,053		4,080,739		4,064,414		4.5	%
				4,175,053		4,080,739		4,064,414

Deliver Buyer, Inc.	Capital Equipment	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	5/1/2024	531,987		530,704		530,657		0.6	%
				531,987		530,704		530,657

DigiCert, Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor)⁽¹⁾	10/31/2024	1,488,750		1,482,238		1,488,750		1.7	%
				1,488,750		1,482,238		1,488,750


Company	Industry	Type of Investment	Maturity	Par Amount	Cost	Fair Value⁽²⁾	% of Net Assets⁽⁴⁾		Industry	Type of Investment	Maturity	Par Amount	Cost	Fair Value⁽²⁾	% of Net Assets⁽⁴⁾

CP OPCO, LLC	Services: Consumer	Senior Secured First Lien Term Loan B (ABR + 5.50% PIK, 4.25% ABR Floor)⁽¹⁾⁽³⁾	4/1/2019	219,589	213,451	59,728	0.1	%
		Senior Secured First Lien Term Loan C (ABR + 8.50% PIK, 4.25% ABR Floor)⁽¹⁾⁽³⁾	4/1/2019	1,603,881	717,016	—	0.0	%
		Preferred Facility (ABR + 7.00% PIK, 3.75% ABR Floor)⁽¹⁾⁽³⁾	4/1/2019	934,849	—	—	0.0	%
		Revolving Credit Facility (ABR + 3.50% Cash, 4.25% ABR Floor)⁽¹⁾	4/1/2019	—	—	—	0.0	%
		Common Stock		41	—	—	0.0	%
				2,758,360	930,467	59,728

CSP Technologies North America, LLC	Containers, Packaging and Glass	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	1/31/2022	2,480,781	2,480,781	2,480,781	3.9	%
				2,480,781	2,480,781	2,480,781

CT Technologies Intermediate Holdings, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾	12/1/2021	5,218,206	5,063,171	5,218,206	8.1	%
				5,218,206	5,063,171	5,218,206

Elite Comfort Solutions, Inc.	Chemicals, Plastics and Rubber	Senior Secured First Lien Term Loan (LIBOR + 6.50%, 1.00% LIBOR Floor)⁽¹⁾	1/15/2021	5,810,616	5,810,616	5,810,616	9.1	%	Chemicals, Plastics and Rubber	Senior Secured First Lien Term Loan (LIBOR + 6.50%, 1.00% LIBOR Floor)⁽¹⁾	1/15/2021	5,507,602	5,507,602	5,507,602	6.1	%
				5,810,616	5,810,616	5,810,616						5,507,602	5,507,602	5,507,602	��

Evo Payments International, LLC	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	12/22/2023	3,482,500	3,451,297	3,517,325	5.5	%
				3,482,500	3,451,297	3,517,325

Explorer Holdings, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 3.75%, 1.00% LIBOR Floor)⁽¹⁾	5/2/2023	979,038	976,115	982,758	1.5	%
GC EOS Buyer, Inc.									Automotive	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	8/1/2025	3,750,000	3,713,265	3,712,500	4.1	%
				979,038	976,115	982,758						3,750,000	3,713,265	3,712,500

GK Holdings, Inc.	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	1/20/2021	2,969,466	2,957,674	2,908,592	4.5	%	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	1/20/2021	2,938,931	2,930,787	2,656,795	3.0	%
				2,969,466	2,957,674	2,908,592						2,938,931	2,930,787	2,656,795

Global Eagle Entertainment Inc.	Telecommunications	Senior Secured First Lien Term Loan (LIBOR + 7.00%, 1.00% LIBOR Floor)⁽¹⁾	1/6/2023	4,147,500	4,079,692	4,116,394	6.4	%
Glass Mountain Pipeline Holdings, LLC									Energy: Oil & Gas	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	12/23/2024	4,950,125	4,933,531	4,950,125	5.5	%
				4,147,500	4,079,692	4,116,394						4,950,125	4,933,531	4,950,125

Golden West Packaging Group LLC	Forest Products & Paper	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	6/20/2023	6,708,188	6,708,188	6,708,188	10.5	%	Forest Products & Paper	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	6/20/2023	8,792,361	8,792,361	8,792,361	9.9	%
				6,708,188	6,708,188	6,708,188						8,792,361	8,792,361	8,792,361

High Ridge Brands Co.	Consumer Goods: Non-Durable	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	6/30/2022	1,851,563	1,828,706	1,773,982	2.8	%	Consumer Goods: Non-Durable	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	6/30/2022	1,820,455	1,802,712	1,694,479	1.9	%
				1,851,563	1,828,706	1,773,982				Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	6/30/2022	12,358	12,238	11,503	0.0	%
												1,832,813	1,814,950	1,705,982

Highline Aftermarket Acquisitions, LLC	Automotive	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾	3/18/2024	3,110,895	3,096,476	3,110,895	4.8	%	Automotive	Senior Secured First Lien Term Loan (LIBOR + 3.50%, 1.00% LIBOR Floor)⁽¹⁾	4/26/2025	4,107,353	4,094,567	4,114,746	4.6	%
				3,110,895	3,096,476	3,110,895						4,107,353	4,094,567	4,114,746

The Imagine Group, LLC									Media: Advertising, Printing & Publishing	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾	6/21/2022	7,880,000	7,820,824	7,437,932	8.3	%
												7,880,000	7,820,824	7,437,932

Infogroup, Inc.									Services: Business	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	4/3/2023	4,925,000	4,887,744	4,905,300	5.5	%
												4,925,000	4,887,744	4,905,300

Intermedia Holdings, Inc.									High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	7/21/2025	3,000,000	2,970,580	2,970,000	3.3	%
												3,000,000	2,970,580	2,970,000

Isagenix International, LLC									Consumer Goods: Durable	Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor)⁽¹⁾	6/16/2025	2,937,813	2,922,007	2,894,920	3.2	%
												2,937,813	2,922,007	2,894,920

Jackson Hewitt Tax Services Inc.									Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 6.25%, 1.00% LIBOR Floor)⁽¹⁾	5/31/2023	6,000,000	6,000,000	6,000,000	6.7	%
												6,000,000	6,000,000	6,000,000

Keystone Acquisition Corp.									Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	5/1/2024	6,225,584	6,131,648	6,194,456	6.9	%
												6,225,584	6,131,648	6,194,456


Company	Industry	Type of Investment	Maturity	Par Amount	Cost	Fair Value⁽²⁾	% of Net Assets⁽⁴⁾		Industry	Type of Investment	Maturity	Par Amount	Cost	Fair Value⁽²⁾	% of Net Assets⁽⁴⁾

Imagine! Print Solutions, LLC	Media: Advertising, Printing & Publishing	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾	6/21/2022	7,960,000	7,884,180	7,880,400	12.3	%
				7,960,000	7,884,180	7,880,400

Infogroup, Inc.	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	4/3/2023	4,975,000	4,928,990	4,925,250	7.7	%
				4,975,000	4,928,990	4,925,250

Keystone Acquisition Corp.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	5/1/2024	8,000,000	7,857,692	8,000,000	12.5	%
				8,000,000	7,857,692	8,000,000

KNB Holdings Corporation	Consumer Goods: Durable	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	4/26/2024	6,500,000	6,377,734	6,516,250	10.3	%	Consumer Goods: Durable	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	4/26/2024	4,999,557	4,919,799	4,960,560	5.5	%
				6,500,000	6,377,734	6,516,250						4,999,557	4,919,799	4,960,560

LifeMiles Ltd.	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	8/18/2022	5,000,000	4,950,691	4,950,000	7.7	%	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	8/18/2022	5,423,077	5,400,078	5,450,192	6.1	%
				5,000,000	4,950,691	4,950,000						5,423,077	5,400,078	5,450,192

Lighthouse Network, LLC	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾	10/13/2023	4,466,250	4,427,648	4,466,250	7.1	%
Loparex International B.V.									Containers, Packaging and Glass	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾	4/11/2025	6,650,000	6,615,014	6,716,500	7.5	%
				4,466,250	4,427,648	4,466,250						6,650,000	6,615,014	6,716,500

MB Aerospace ACP Holdings II Corp.	Aerospace and Defense	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	12/15/2022	5,163,678	5,128,257	5,163,678	8.0	%
Manna Pro Products, LLC									Consumer Goods: Non-Durable	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	12/8/2023	3,060,208	3,060,208	3,049,498	3.4	%
										Delayed Draw Term Loan (LIBOR + 6.00%)⁽¹⁾	12/8/2023	376,167	376,167	374,850	0.4	%
												3,436,375	3,436,375	3,424,348

Midcoast Energy, LLC									Energy: Oil & gas	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	8/1/2025	4,000,000	3,960,877	4,005,200	4.5	%
				5,163,678	5,128,257	5,163,678						4,000,000	3,960,877	4,005,200

New Media Holdings II LLC	Media: Advertising, Printing & Publishing	Senior Secured First Lien Term Loan (LIBOR + 6.25%, 1.00% LIBOR Floor)⁽¹⁾	7/14/2022	2,932,340	2,932,340	2,932,340	4.6	%	Media: Advertising, Printing & Publishing	Senior Secured First Lien Term Loan (LIBOR + 6.25%, 1.00% LIBOR Floor)⁽¹⁾	7/14/2022	4,557,382	4,549,251	4,557,382	5.1	%
												4,557,382	4,549,251	4,557,382

Northern Star Industries, Inc.									Capital Equipment	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾	3/28/2025	4,228,750	4,209,044	4,207,606	4.7	%
				2,932,340	2,932,340	2,932,340						4,228,750	4,209,044	4,207,606

Peraton Corp.	Aerospace and Defense	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	4/29/2024	4,987,500	4,963,982	4,962,563	7.7	%	Aerospace and Defense	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	4/29/2024	3,441,288	3,427,525	3,441,288	3.8	%
				4,987,500	4,963,982	4,962,563						3,441,288	3,427,525	3,441,288

PetroChoice Holdings, Inc.	Chemicals, Plastics and Rubber	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	8/22/2022	4,962,025	4,962,025	4,962,025	7.7	%	Chemicals, Plastics and Rubber	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	8/19/2022	4,911,410	4,911,410	4,911,410	5.5	%
				4,962,025	4,962,025	4,962,025						4,911,410	4,911,410	4,911,410

Pomeroy Group LLC	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	11/30/2021	2,343,582	2,288,650	2,329,989	3.6	%
		Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾	11/30/2021	419,501	409,668	417,068	0.7	%
Port Townsend Holdings Company, Inc.									Forest Products & Paper	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾	4/3/2024	6,160,625	6,103,585	6,099,019	6.8	%
				2,763,083	2,698,318	2,747,057						6,160,625	6,103,585	6,099,019

PT Network, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 6.50%, 1.00% LIBOR Floor)⁽¹⁾	11/30/2021	4,962,500	4,921,159	4,996,741	7.8	%	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	11/30/2021	4,875,423	4,875,423	4,807,655	5.4	%
				4,962,500	4,921,159	4,996,741						4,875,423	4,875,423	4,807,655

PVHC Holding Corp									Containers, Packaging and Glass	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾	8/3/2024	1,992,273	1,982,463	1,982,311	2.2	%
												1,992,273	1,982,463	1,982,311

Recorded Books Inc.									Media: Diversified & Production	Senior Secured First Lien Term Loan (LIBOR + 4.50%)⁽¹⁾	8/29/2025	4,000,000	3,960,299	3,960,299	4.4	%
												4,000,000	3,960,299	3,960,299

Company Industry Type of Investment Maturity
Par
Amount
Cost
Fair
Value⁽²⁾

% of
Net Assets⁽⁴⁾

Quorum Health Corporation Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 6.75%, 1.00% LIBOR Floor)⁽¹⁾
4/29/2022 1,176,137
1,158,096
1,191,191
1.9 %
1,176,137
1,158,096
1,191,191

Rough Country, LLC Automotive
Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾
5/25/2023 4,987,500
4,940,019
4,937,625
7.7 %
4,987,500
4,940,019
4,937,625

Salient CRGT Inc. High Tech Industries
Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor)⁽¹⁾
2/28/2022 2,948,214
2,895,729
2,935,832
4.6 %
2,948,214
2,895,729
2,935,832

SCS Holdings I Inc. Wholesale
Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾
10/31/2022 2,778,498
2,737,893
2,806,283
4.4 %
2,778,498
2,737,893
2,806,283

Starfish Holdco, LLC High Tech Industries
Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾
8/16/2024 5,000,000
4,950,395
4,950,000
7.7 %
5,000,000
4,950,395
4,950,000

Sundial Group Holdings LLC Consumer Goods: Non-Durable
Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾
8/15/2024 10,000,000
9,852,004
9,850,000
15.4 %
10,000,000
9,852,004
9,850,000

Survey Sampling International, LLC Services: Business
Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾
12/16/2020 2,954,530
2,934,263
2,954,530
4.6 %
2,954,530
2,934,263
2,954,530

TouchTunes Interactive Networks, Inc. Media: Diversified & Production
Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾
5/28/2021 4,974,555
4,974,555
5,005,894
7.8 %
4,974,555
4,974,555
5,005,894

TrialCard Incorporated Services: Consumer
Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾
10/26/2021 3,300,075
3,273,215
3,300,075
5.1 %
3,300,075
3,273,215
3,300,075

VCVH Holding Corp. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾
6/1/2023 2,962,500
2,938,097
2,958,353
4.6 %
2,962,500
2,938,097
2,958,353

VIP Cinema Holdings, Inc. Consumer Goods: Durable
Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽¹⁾
3/1/2023 728,165
724,860
735,446
1.1 %
728,165
724,860
735,446

Total Investments, September 30, 2017 $ 187,473,229
$ 183,950,100
$ 184,241,231
287.6 %



Company	Industry	Type of Investment	Maturity	Par Amount	Cost	Fair Value⁽²⁾	% of Net Assets⁽⁴⁾

Rough Country, LLC	Automotive	Senior Secured First Lien Term Loan (LIBOR + 3.75%, 1.00% LIBOR Floor)⁽¹⁾	5/25/2023	5,205,684	5,173,271	5,212,452	5.8	%
				5,205,684	5,173,271	5,212,452

Safe Fleet Holdings LLC	Automotive	Senior Secured First Lien Term Loan (LIBOR + 3.00%, 1.00% LIBOR Floor)⁽¹⁾	2/3/2025	3,457,625	3,449,777	3,457,625	3.9	%
				3,457,625	3,449,777	3,457,625

Salient CRGT Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor)⁽¹⁾	2/28/2022	2,720,536	2,683,070	2,720,808	3.0	%
				2,720,536	2,683,070	2,720,808

SCS Holdings I Inc.	Wholesale	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽¹⁾	10/30/2022	3,904,564	3,873,416	3,904,564	4.4	%
				3,904,564	3,873,416	3,904,564

Shift4 Payments, LLC	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	11/29/2024	9,925,000	9,881,191	9,925,000	11.1	%
				9,925,000	9,881,191	9,925,000

Sierra Enterprises, LLC	Beverage & Food	Senior Secured First Lien Term Loan (LIBOR + 3.75%, 1.00% LIBOR Floor)⁽¹⁾	11/11/2024	5,211,928	5,196,997	5,191,602	5.8	%
				5,211,928	5,196,997	5,191,602

SMB Shipping Logistics, LLC	Transportation: Cargo	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor)⁽¹⁾	2/5/2024	2,493,671	2,469,513	2,468,735	2.8	%
				2,493,671	2,469,513	2,468,735

Starfish Holdco, LLC	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	8/16/2024	3,955,025	3,921,489	3,955,025	4.4	%
				3,955,025	3,921,489	3,955,025

Syniverse Holdings, Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽¹⁾	3/9/2023	4,975,000	4,930,568	4,975,000	5.6	%
				4,975,000	4,930,568	4,975,000

The KEYW Corporation	Aerospace and Defense	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽¹⁾	5/8/2024	3,337,209	3,321,534	3,305,172	3.7	%
				3,337,209	3,321,534	3,305,172

The Octave Music Group, Inc.	Media: Diversified & Production	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽¹⁾	5/28/2021	4,923,664	4,923,664	4,923,664	5.5	%
				4,923,664	4,923,664	4,923,664

ThoughtWorks, Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor)⁽¹⁾	10/11/2024	4,987,500	4,974,219	5,001,965	5.6	%
				4,987,500	4,974,219	5,001,965

Tortoise Borrower LLC	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor)⁽¹⁾	1/31/2025	2,462,625	2,451,451	2,462,625	2.7	%
				2,462,625	2,451,451	2,462,625



Company	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value⁽²⁾		% of Net Assets⁽⁴⁾

United Road Services, Inc.	Transportation: Cargo	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽¹⁾	9/1/2024	3,880,000		3,863,202		3,880,000		4.3	%
				3,880,000		3,863,202		3,880,000

Vertex Aerospace Services Corp.	Aerospace and Defense	Senior Secured First Lien Term Loan (LIBOR + 4.75%)⁽¹⁾	6/29/2025	1,496,250		1,488,975		1,511,213		1.7	%
				1,496,250		1,488,975		1,511,213

Wheels Up Partners LLC	Aerospace and Defense	Senior Secured First Lien Term Loan (LIBOR + 8.55%, 1.00% LIBOR Floor)⁽¹⁾	10/15/2021	4,437,529		4,333,078		4,380,729		4.9	%
				4,437,529		4,333,078		4,380,729

Xebec Global Holdings, LLC	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	2/12/2024	8,217,063		8,217,063		8,217,063		9.2	%
				8,217,063		8,217,063		8,217,063

Z Medica, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽¹⁾	9/29/2022	2,625,500		2,625,500		2,622,349		2.9	%
				2,625,500		2,625,500		2,622,349

Total Investments, September 30, 2018				$	256,547,053	$	252,887,053	$	251,913,920	281.2	%


(1)	Represents the ~~weighted average~~ annual current interest rate as of September 30, ~~2017.~~2018. All interest rates are payable in cash, unless otherwise noted.


(2)	Represents the fair value in accordance with ASC 820 as reported by MCC JV. The determination of such fair value is not included in the Company’s board of directors’ valuation process described elsewhere herein.


(3)	This investment was on non-accrual status as of September 30, ~~2017.~~2018.


(4)	Percentage is based on MCC JV's net assets of ~~$64,157,655~~$89,580,037 as of September 30, ~~2017.~~2018.

Below is certain summarized financial Information for MCC JV as of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017,~~2018, and for the three months ended ~~December~~March 31, ~~2017~~2019 and ~~2016:~~2018:


	December 31, 2017		September 30, 2017		March 31, 2019		September 30, 2018
	(unaudited)				(unaudited)
Selected Consolidated Statement of Assets and Liabilities Information:
Investments in loans at fair value (cost: of $210,063,704 and $183,950,100, respectively)	$	210,395,982	$	184,241,231
Investments in loans at fair value (cost: of $258,490,674 and $252,887,053, respectively)					$	254,793,265	$	251,913,920
Cash	18,449,700		8,908,117		9,406,437		14,035,722
Other assets	686,391		597,831		998,084		2,614,208
Total assets	$	229,532,073	$	193,747,179	$	265,197,786	$	268,563,850

Line of credit (net of debt issuance costs of $1,689,663 and $1,789,953, respectively)	$	151,690,337	$	128,690,047
Line of credit (net of debt issuance costs of $1,488,629 and $1,408,462, respectively)					$	177,811,371	$	177,871,538
Other liabilities	354,436		440,959		396,032		379,030
Interest payable	554,917		458,518		807,869		733,245
Total liabilities	152,599,690		129,589,524		179,015,272		178,983,813
Members' capital	76,932,383		64,157,655		86,182,514		89,580,037
Total liabilities and members' capital	$	229,532,073	$	193,747,179	$	265,197,786	$	268,563,850


	For the three months ended December 31						For the three months ended March 31						For the six months ended March 31
	2017			2016			2019			2018			2019			2018
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Selected Consolidated Statement of Operations Information:
Total revenues	$	3,862,003		$	2,002,357		$	5,143,154		$	3,917,128		$	10,120,425		$	7,599,131
Total expenses	(1,931,382		)	(975,360		)	(2,748,463		)	(2,069,228		)	(5,431,559		)	(4,000,610		)
Net unrealized appreciation/(depreciation)	(53,471		)	549,454			(806,438		)	99,810			(2,724,275		)	46,339
Net realized gain/(loss)	432,965			105,892			49,381			179,544			(742,113		)	612,508
Net income/(loss)	$	2,310,115		$	1,682,343		$	1,637,634		$	2,127,254		$	1,222,478		$	4,257,368

Unconsolidated Significant Subsidiaries

In accordance with Rules 3-09 and 4-08(g) of Regulation S-X, the Company must determine which of its unconsolidated Control Investments, if any, are considered “significant subsidiaries.” In evaluating these investments, there are three tests utilized to determine if any Controlled Investments are considered significant subsidiaries: the investment test, the asset test and the income test. Rule 3-09 of Regulation S-X requires the Company to include separate audited financial statements of any unconsolidated majority-owned subsidiary (Control Investments in which the Company owns greater than 50% of the voting securities) in anthe Company's annual report on Form 10-K if any of the three tests exceed 20%. Rule 4-08(g) of Regulation S-X requires summarized financial information of Control Investments in anthe Company's annual report on Form 10-K if any of the three tests exceeds 10%, and summarized financial information in athe Company's quarterly report on Form 10-Q if any of the three tests exceeds 20% pursuant to Rule 10-01(b)(1) of Regulation S-X.

As of December 31, 2017, the Company had no single Control Investment that represented greater than 20% of its total Investment Portfolio at fair value and no single investment whose total assets represented greater than 20% of its total assets. After performing the income ~~test~~analysis for the ~~three~~six months ended ~~December~~March 31, 2017, the Company determined that its income from one of its Control Investments individually generated more than 20% of its total income, primarily due to the unrealized depreciation that was recognized on the2019, our investment ~~during the three months ended December 31, 2017. As such, OmniVere,~~in NVTN LLC ~~was considered a significant subsidiary at~~exceeded the 20% ~~level as~~threshold under Rule 10-01(b)(1) of ~~December 31, 2017.~~

~~The~~Regulation S-X. Accordingly, the following tables show summarized unaudited financial information for ~~OmniVere, LLC, which met the 20% income test for the three months ended December 31, 2017:~~NVTN LLC:

December 31, 2017 September 30, 2017
Balance Sheet Data⁽¹⁾

Current assets $ 8,457,083
$ 10,632,181
Non-current assets 46,969,847
48,750,429
Current liabilities 7,952,292
8,500,394
Non-current liabilities 102,639,377
99,927,509



	March 31, 2019		September 30, 2018
Balance Sheet Data⁽¹⁾
Current assets	$	3,232,951	$	3,615,917
Non-current assets	$	29,755,723	$	33,770,103
Current liabilities	$	4,037,286	$	2,550,219
Non-current liabilities	$	34,457,665	$	32,474,480


	For the three months ended						For the three months ended March 31						For the six months ended March 31
	December 31, 2017			December 31, 2016			2019			2018			2019			2018
Summary of Operations⁽¹⁾
Total revenues	$	5,007,107		$	8,558,339		$	7,751,266		$	7,741,718		$	15,099,915		$	15,785,500
Cost of sales	3,789,896			5,948,374			1,885,573			1,929,162			3,694,842			3,881,211
Operating expenses	4,321,778			2,131,400			6,675,414			7,150,345			13,047,950			13,778,957
Other expenses	3,014,879			4,583,165			1,573,534			1,247,444			2,597,217			2,396,155
Net loss	$	(6,119,446	)	$	(4,104,600	)	$	(2,383,255	)	$	(2,585,233	)	$	(4,240,094	)	$	(4,270,823	)


(1)	All amounts are unaudited.

The Company also determined that the assets of MCC JV represented greater than 20% of its total assets and also generated more than 20% of the Company’s total income primarily due to dividend income. Accordingly, the related summary financial information is presented in the “MCC Senior Loan Strategy JV I LLC” heading above.

Note 4. Fair Value Measurements

The Company follows ASC 820 for measuring the fair value of portfolio investments. Fair value is the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation models involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. The Company’s fair value analysis includes an analysis of the value of any unfunded loan commitments. Financial investments recorded at fair value in the consolidated financial statements are categorized for disclosure purposes based upon the level of judgment associated with the inputs used to measure their value. The valuation hierarchical levels are based upon the transparency of the inputs to the valuation of the investment as of the measurement date. The three levels are defined below. Investments which are valued using NAV as a practical expedient are excluded from this hierarchy:

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

Level 2 - Valuations based on inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable at the measurement date. This category includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in non-active markets including actionable bids from third parties for privately held assets or liabilities, and observable inputs other than quoted prices such as yield curves and forward currency rates that are entered directly into valuation models to determine the value of derivatives or other assets or liabilities.

Level 3 - Valuations based on inputs that are unobservable and where there is little, if any, market activity at the measurement date. The inputs for the determination of fair value may require significant management judgment or estimation and are based upon management’s assessment of the assumptions that market participants would use in pricing the assets or liabilities. These investments include debt and equity investments in private companies or assets valued using the Market or Income Approach and may involve pricing models whose inputs require significant judgment or estimation because of the absence of any meaningful current market data for identical or similar investments. The inputs in these valuations may include, but are not limited to, capitalization and discount rates, beta and EBITDA multiples. The information may also include pricing information or broker quotes which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence.

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

The following table presents the fair value measurements of our investments, by major class according to the fair value hierarchy, as of ~~December~~March 31, ~~2017~~2019 (dollars in thousands):


	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Senior Secured First Lien Term Loans	$	—	$	—	$	532,308	$	532,308	$	—	$	—	$	352,820	$	352,820
Senior Secured Second Lien Term Loans	—		—		106,304		106,304		—		—		35,851		35,851
Senior Secured First Lien Notes	—		—		27,420		27,420		—		—		19,268		19,268
Unsecured Debt	—		—		—		—		—		—		2,662		2,662
Equity/Warrants	34		21		102,410		102,465		—		—		126,489		126,489
Total	$	34	$	21	$	768,442	$	768,497	$	—	$	—	$	537,090	$	537,090
MCC Senior Loan Strategy JV I LLC⁽¹⁾							$	67,406							75,410
Total Investments, at fair value							$	835,903							$	612,500

The following table presents the fair value measurements of our investments, by major class according to the fair value hierarchy, as of September 30, ~~2017~~2018 (dollars in thousands):


	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Senior Secured First Lien Term Loans	$	—	$	—	$	537,163	$	537,163	$	—	$	—	$	395,015	$	395,015
Senior Secured Second Lien Term Loans	—		—		135,826		135,826		—		—		48,890		48,890
Senior Secured First Lien Notes	—		7,067		20,478		27,545		—		—		19,268		19,268
Unsecured Debt	—		—		—		—		—		—		3,381		3,381
Equity/Warrants	38		21		80,260		80,319		—		50		110,455		110,505
Total	$	38	$	7,088	$	773,727	$	780,853	$	—	$	50	$	577,009	$	577,059
MCC Senior Loan Strategy JV I LLC⁽¹⁾							$	56,138							78,371
Total Investments, at fair value							$	836,991							$	655,430

~~(1)~~


(1)	Certain investments that are measured at fair value using NAV have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amount presented in the Consolidated Statements of Assets and Liabilities.

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the six months ended March 31, 2019 (dollars in thousands):



	Senior Secured First Lien Term Loans			Senior Secured Second Lien Term Loans			Senior Secured First Lien Notes		Unsecured Debt			Equities/Warrants			Total
Balance as of September 30, 2018	$	395,015		$	48,890		$	19,268	$	3,381		$	110,455		$	577,009
Purchases and other adjustments to cost	3,328			821			—		(647		)	2,589			6,091
Originations	50,169			1,500			—		—			72			51,741
Sales	(32,030		)	(11,828		)	—		—			—			(43,858		)
Settlements	(28,752		)	(2,141		)	—		(13		)	(1		)	(30,907		)
Net realized gains/(losses) from investments	(44,061		)	114			—		(22,787		)	(873		)	(67,607		)
Net transfers in and/or out of Level 3	—			—			—		—			—			—
Net unrealized gains/(losses)	9,151			(1,505		)	—		22,728			14,247			44,621
Balance as of March 31, 2019	$	352,820		$	35,851		$	19,268	$	2,662		$	126,489		$	537,090

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the ~~three~~six months ended ~~December~~March 31, ~~2017 (dollars in thousands):~~

Senior
Secured
First Lien
Term
Loans

Senior
Secured
Second
Lien Term
Loans

Senior
Secured
First Lien
Notes

Unsecured
Debt
Equities/Warrants Total
Balance as of September 30, 2017 $ 537,163
$ 135,826
$ 20,478
$ —
$ 80,260
$ 773,727
Purchases and other adjustments to cost 2,641
10,335
3
—
728
13,707
Originations 44,271
—
—
—
17,450
61,721
Sales (4,850 ) —
—
—
—
(4,850 )
Settlements (6,580 ) (36,429 ) —
—
—
(43,009 )
Net realized gains/(losses) from investments (150 ) 9
—
—
—
(141 )
Net transfers in and/or out of Level 3 —
—
7,067
—
—
7,067
Net unrealized gains/(losses) (40,187 ) (3,437 ) (128 ) —
3,972
(39,780 )
Balance as of December 31, 2017 $ 532,308

$ 106,304

$ 27,420

$ —

$ 102,410

$ 768,442

~~The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended December 31, 2016~~2018 (dollars in thousands):


	Senior Secured First Lien Term Loans			Senior Secured Second Lien Term Loans		Senior Secured First Lien Notes			Unsecured Debt			Equities/Warrants			Total			Senior Secured First Lien Term Loans			Senior Secured Second Lien Term Loans			Senior Secured First Lien Notes			Unsecured Debt		Equities/Warrants		Total
Balance as of September 30, 2016	$	565,329		$	213,537	$	21,048		$	52,809		$	23,112		$	875,835
Balance as of September 30, 2017																		$	537,163		$	135,826		$	20,478		$	—	$	80,260	$	773,727
Purchases and other adjustments to cost	4,119			768		—			1,058			12			5,957			3,526			10,524			6			—		2,652		16,708
Originations	75,349			—		—			1,973			10,875			88,197			60,509			—			—			—		18,114		78,623
Sales	—			—		—			—			—			—			(15,061		)	(17,714		)	(7,013		)	—		—		(39,788		)
Settlements	(79,227		)	—		—			(15,000		)	—			(94,227		)	(47,139		)	(41,861		)	—			—		—		(89,000		)
Net realized gains/(losses) from investments	(6,089		)	—		—			(289		)	—			(6,378		)	(1,068		)	(22,639		)	239			—		—		(23,468		)
Net transfers in and/or out of Level 3	—			—		—			—			—			—			—			—			7,067			—		—		7,067
Net unrealized gains/(losses)	3,009			566		(1		)	(906		)	(955		)	1,713			(66,831		)	15,236			(485		)	—		4,117		(47,963		)
Balance as of December 31, 2016	$	562,490		$	214,871	$	21,047		$	39,645		$	33,044		$	871,097
Balance as of March 31, 2018																		$	471,099		$	79,372		$	20,292		$	—	$	105,143	$	675,906

Net change in unrealized loss included in earnings related to investments still held as of ~~December~~March 31, ~~2017~~2019 and ~~2016,~~2018 was approximately ~~$39.2~~$12.5 million and ~~$23.0~~$65.6 million, respectively.

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

Sales represent net proceeds received from investments sold.

Settlements represent principal paydowns received.

A review of the fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in/out of

the Level 3 category as of the beginning of the quarter in which the reclassifications occur. During the ~~three~~six months ended ~~December~~March 31, ~~2017,~~2019, none of our investments transferred in or out of Level 3. During the six months ended March 31, 2018, one of our senior secured first lien notes with a fair value of $7.0 million transferred from Level 2 to Level 3 because of the decrease in availability of the transaction data or the inputs to the valuation. ~~During the three months ended December 31, 2016, none of our investments transferred in or out of Level 3.~~

The following table presents the quantitative information about Level 3 fair value measurements of our investments, as of ~~December~~March 31, ~~2017~~2019 (dollars in thousands):

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted Average)

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted Average)

Senior Secured First Lien Term Loans

300,547

Income Approach (DCF)

Market yield

7.26% - 15.40% (10.89%)

211,079

Income Approach (DCF)

Market Yield

6.76% - 17.19% (10.13%)

Senior Secured First Lien Term Loans

2,972

Enterprise Value Analysis

Expected Proceeds

$0.0M - $2.6M ($2.3M)

84,774

Market Approach (Guideline Comparable)/Market Approach (Comparable Transactions)/Income Approach (DCF)/ Enterprise Value Analysis

Revenue Multiple⁽¹⁾
EBITDA Multiple⁽¹⁾
Discount Rate
Expected Proceeds

1.35x - 1.35x (1.35x)
3.50x - 6.75x (5.96x)
10.00% - 18.00% (16.63%)
$1.2M - $17.5M ($14.0M)

Senior Secured First Lien Term Loans

148,141

Market Approach (Guideline Comparable)/Market Approach (Comparable Transactions)/Income Approach (DCF)/ Enterprise Value Analysis

Revenue Multiple⁽¹⁾, EBITDA Multiple⁽¹⁾, Discount rate, Expected Proceeds

0.63x - 2.00x (1.13x) / 5.50x - 10.00x (7.51x) / 10.00% - 22.00% (17.67%) / $4.0M - $18.3M ($9.6M)

56,967

Recent Arms-Length Transaction

N/A

Senior Secured First Lien Term Loans

80,648

Recent Arms-Length Transaction

Recent Arms Length Transaction

N/A

Senior Secured First Lien Notes

27,420

Income Approach (DCF)

Market yield

8.96% - 11.50% (9.61%)

19,268

Income Approach (DCF)

Market Yield

17.66%

Senior Secured Second Lien Term Loan

62,769

Income Approach (DCF)

Market yield

10.30% - 16.28% (13.45%)

Senior Secured Second Lien Term Loans

7,760

Enterprise Value Analysis

Expected Proceeds

$0.0M-$7.8M ($7.8M)

15,127

Income Approach (DCF)

Market Yield

10.31% - 18.15% (14.58%)

Senior Secured Second Lien Term Loan

15,207

Market Approach (Guideline Comparable)/Income Approach (DCF)

Revenue Multiple⁽¹⁾, EBITDA Multiple⁽¹⁾, Discount Rate

0.70x - 0.70x (0.70x) / 7.25x - 10.00x (7.29x) / 17.50% - 17.50% (17.50%)

Senior Secured Second Lien Term Loan

20,568

Recent Arms-Length Transaction

Recent Arms Length Transaction

N/A

Senior Secured Second Lien Term Loans

17,804

Market Approach (Guideline Comparable)/Income Approach (DCF)

Revenue Multiple⁽¹⁾
EBITDA Multiple⁽¹⁾
Discount Rate

0.70x - 0.70x (0.70x)
4.50x - 7.25x (7.19x)
16.50% - 16.50% (16.50%)

Senior Secured Second Lien Term Loans

2,920

Recent Arms-Length Transaction

N/A

Unsecured Debt

850

Income Approach (DCF)

Market Yield

7.72%

Unsecured Debt

288

Market Approach (Guideline Comparable)

EBITDA Multiple⁽¹⁾

4.00x - 5.00x (4.50x)

Unsecured Debt

1,524

Recent Arms-Length Transaction

N/A

Equity

112,445

Market Approach (Guideline Comparable)/Market Approach (Comparable Transactions)/Income Approach (DCF)/Enterprise Value Analysis/Option Model

Revenue Multiple⁽¹⁾
EBITDA Multiple⁽¹⁾
Discount Rate
Expected Proceeds
Volatility

0.70x - 1.35x (0.70x)
3.50x - 13.50x (8.65x)
10.00% - 21.50% (17.20%)
$5.7M - $47.5M ($47.5M)
50.00% - 50.00% (50.00%)

Equity

2,715

Net Asset Value (NAV)

N/A

Equity

11,329

Income Approach (DCF)

Market Yield

12.67%

Total

537,090

Fair Value Valuation Technique Unobservable Input Range (Weighted Average)

Unsecured Debt —
Market Approach (Guideline Comparable)/Market Approach (Comparable Transactions)/Income Approach (DCF)/Enterprise Value Analysis
Revenue Multiple⁽¹⁾, Discount Rate, Expected Proceeds
1.00x-1.40x (1.20x) / 17.50%-23.50% (20.50%) / $3.0M - $5.0M ($4.0M)
Equity 21,845
Recent Arms-Length Transaction Recent Arms Length Transaction N/A
Equity 80,565
Market Approach (Guideline Comparable)/Market Approach (Comparable Transactions)/Income Approach (DCF)/Enterprise Value Analysis
Revenue Multiple⁽¹⁾, EBITDA Multiple⁽¹⁾, Discount rate, Expected Proceeds
0.70x - 2.00x (0.74x) / 5.00x - 9.63x (8.45x) / 10.00%-20.50% (15.96%) / $4.0M - $18.3M ($5.0M)
Equity —
Enterprise Value Analysis Expected Proceeds $0.0M
Total $ 768,442

The following table has been modified to conform to the current ~~period~~year presentation, and presents the quantitative information about Level 3 fair value measurements of our investments, as of September 30, ~~2017~~2018 (dollars in thousands):

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted Average)

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted Average)

Senior Secured First Lien Term Loans

288,134

Income Approach (DCF)

Market yield

8.63% - 14.74% (11.15%)

175,233

Income Approach (DCF)

Market Yield

7.18% - 16.87% (10.80%)

Senior Secured First Lien Term Loans

5,254

Enterprise Value Analysis

Expected Proceeds

$0.0M - $4.9M ($4.6M)

113,178

Market Approach (Guideline Comparable)/Market Approach (Comparable Transactions)/Income Approach (DCF)/ Enterprise Value Analysis

Revenue Multiple⁽¹⁾

EBITDA Multiple⁽¹⁾

Discount Rate

Expected Proceeds

0.75x - 1.35x (0.87x)

3.50x - 7.00x (5.93x)

10.00% - 18.00% (16.77%)

$0.0M - $127.5M ($76.8M)

Senior Secured First Lien Term Loans

184,059

Market Approach (Guideline Comparable)/Market Approach (Comparable Transactions)/Income Approach (DCF)

Revenue Multiple⁽¹⁾, EBITDA Multiple⁽¹⁾, Discount rate

0.60x - 3.00x (1.42x) / 5.50x - 8.00x (6.77x) / 10.00% - 22.00% (17.79%)

106,604

Recent Arms-Length Transaction

Recent Arms Length Transaction

N/A

Senior Secured First Lien Term Loans

59,716

Recent Arms-Length Transaction

Recent Arms Length Transaction

N/A

Senior Secured First Lien Notes

20,478

Income Approach (DCF)

Market yield

8.85% - 8.85% (8.85%)

19,268

Income Approach (DCF)

Market Yield

14.17%

Senior Secured Second Lien Term Loan

88,126

Income Approach (DCF)

Market yield

9.92% - 16.16% (12.22%)

Senior Secured Second Lien Term Loans

7,760

Enterprise Value Analysis

Expected Proceeds

$0.0M - $15.5M ($7.8M)

33,376

Income Approach (DCF)

Market Yield

8.99% - 14.17% (11.29%)

Senior Secured Second Lien Term Loan

20,894

Recent Arms-Length Transaction

N/A

Senior Secured Second Lien Term Loan

19,046

Market Approach (Guideline Comparable)/Income Approach (DCF)

Revenue Multiple⁽¹⁾, EBITDA Multiple⁽¹⁾, Discount Rate

0.55x - 0.70x (0.67x) / 7.00x - 9.13x (8.06x) / 17.50% - 18.00% (17.61%)

Senior Secured Second Lien Term Loans

15,113

Market Approach (Guideline Comparable)/Income Approach (DCF)

Revenue Multiple⁽¹⁾

EBITDA Multiple⁽¹⁾

Discount Rate

0.60x - 0.80x (0.70x)

6.75x - 7.75x (7.25x)

15.50% - 17.50% (16.50%)

Senior Secured Second Lien Term Loans

401

Recent Arms-Length Transaction

Recent Arms Length Transaction

N/A

Unsecured Debt

—

Enterprise Value Analysis

Expected Proceeds

$0.0M - $0.0M ($0.0M)

Unsecured Debt

—

Market Approach (Guideline Comparable)/Market Approach (Comparable Transactions)/Income Approach (DCF)

Revenue Multiple⁽¹⁾, Discount rate

1.00x-1.40x (1.20x) / 17.50%-23.50% (20.50%)

3,381

Recent Arms-Length Transaction

Recent Arms Length Transaction

N/A

Equity

38,893

Recent Arms-Length Transaction

Recent Arms Length Transaction

N/A

6,678

Income Approach (DCF)

Market Yield

8.75%

Equity

41,367

Market Approach (Guideline Comparable)/Market Approach (Comparable Transactions)/Income Approach (DCF)

Revenue Multiple⁽¹⁾, EBITDA Multiple⁽¹⁾, Discount rate, Expected Proceeds

0.70x - 3.00x (0.74x) / 5.00x - 8.63x (7.10x) / 10.00%-20.50% (16.42%) / $1.9M - $8.0M ($5.0M)

97,107

Market Approach (Guideline Comparable)/Market Approach (Comparable Transactions)/Income Approach (DCF)/Enterprise Value Analysis

Revenue Multiple⁽¹⁾

EBITDA Multiple⁽¹⁾

Discount Rate

Expected Proceeds

0.70x - 1.35x (0.69x)

4.50x - 13.00x (9.60x)

10.00% - 21.50% (14.79%)

$0.0M - $5.7M ($0.0M)

Equity

—

Enterprise Value Analysis

Expected Proceeds

$0.0M

6,670

Recent Arms-Length Transaction

Recent Arms Length Transaction

N/A

Total

773,727

577,009


(1)	Represents inputs used when the Company has determined that market participants would use such multiples when measuring the fair value of these investments.

~~The significant~~Increases or decreases in any of the above unobservable inputs ~~used in the fair value measurement of the Company’s debt investments are market yields. Increases in market yields would result in lower fair value measurements holding all other variables constant.~~

The significant unobservable inputs used in the fair value measurement of the Company’s equity/warrants investments are comparable company multiples of Revenue or EBITDA (earnings before interest, taxes, depreciation and amortization) for the last twelve months (“LTM”), next twelve months (“NTM”) or a reasonable period a market participant would consider. Increases in EBITDA multiples in isolation would result in a lower or higher fair value ~~measurements.~~measurement for such assets.

In September 2017, the Company entered into an agreement with Global Accessories Group, LLC (“Global Accessories”), in which itthe Company exchanged its full position in Lydell Jewelry Design Studio, LLC for a 3.8% membership interest in Global Accessories, which is included in the Consolidated Schedule of Investments. As part of the agreement, the Company is entitled to a contingent consideration in the form of cash payments (“Earnout”), as well as up to an additional 5% membership interest (“AMI”), provided Global Accessories achieves certain financial benchmarks over specified time frames. The Earnout and AMI were initially recorded an aggregate fair value of $2.4 million on the transaction date using the Income Approach and were included on the Consolidated Statements of Assets and Liabilities in other assets. The contingent consideration will be remeasured to fair value at each reporting date until the contingency is resolved. Any changes in fair value will be recognized in earnings. As of ~~December~~March 31, ~~2017,~~2019, there was no change in fair value of the contingent consideration.

Note 5. Borrowings

As a BDC, we are generally only allowed to employ leverage to the extent that our asset coverage, as defined in the 1940 Act, equals at least 200% after giving effect to such leverage. The amount of leverage that we employ at any time depends on our assessment of the market and other factors at the time of any proposed borrowing.

However, in March 2018, the Small Business Credit Availability Act modified the 1940 Act by allowing a BDC to increase the maximum amount of leverage it may incur from 200% to 150%, if certain requirements under the 1940 Act are met. Under the 1940 Act, we are allowed to increase our leverage capacity if stockholders representing at least a majority of the votes cast, when a quorum is present, approve a proposal to do so. If we receive stockholder approval, we would be allowed to increase our leverage capacity on the first day after such approval. Alternatively, the 1940 Act allows the majority of our independent directors to approve an increase in our leverage capacity, and such approval would become effective after the one-year anniversary of such approval. In either case, we would be required to make certain disclosures on our website and in SEC filings regarding, among other things, the receipt of approval to increase our leverage, our leverage capacity and usage, and risks related to leverage.

On November 16, 2012, we obtained an exemptive order from the SEC to permit us to exclude the debt of the SBIC LP guaranteed by the SBA from our 200% asset coverage ~~test~~requirement under the 1940 Act. The exemptive order provides us with increased flexibility under the 200% asset coverage ~~test~~requirement by permitting SBIC LP to borrow up to $150 million more than it would otherwise be able to absent the receipt of this exemptive order.

The Company’s outstanding debt excluding debt issuance costs as of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017~~2018 was as follows (dollars in thousands):


	December 31, 2017								September 30, 2017								March 31, 2019								September 30, 2018
	Aggregate Principal Amount Available		Principal Amount Outstanding		Carrying Value		Fair Value		Aggregate Principal Amount Available		Principal Amount Outstanding		Carrying Value		Fair Value		Aggregate Principal Amount Available		Principal Amount Outstanding		Carrying Value		Fair Value		Aggregate Principal Amount Available		Principal Amount Outstanding		Carrying Value		Fair Value
Revolving Credit Facility	$	200,000	$	47,000	$	47,000	$	47,000	$	200,000	$	68,000	$	68,000	$	68,000
Term Loan Facility	102,000		102,000		102,000		102,000		102,000		102,000		102,000		102,000
2019 Notes	—		—		—		—		—		—		—		—
2021 Notes	74,013		74,013		74,013		76,381		74,013		74,013		74,013		77,121		$	74,013	$	74,013	$	74,013	$	74,664	$	74,013	$	74,013	$	74,013	$	74,960
2023 Notes	102,847		102,847		102,847		103,834		102,847		102,847		102,847		103,464		77,847		77,847		77,847		76,446		89,847		89,847		89,847		89,128
2024 Notes																	120,156		120,156		120,156		97,980		121,276		121,276		121,276		112,993
SBA Debentures	150,000		150,000		150,000		150,000		150,000		150,000		150,000		150,000		135,000		135,000		135,000		135,000		135,000		135,000		135,000		135,000
Total	$	628,860	$	475,860	$	475,860	$	479,215	$	628,860	$	496,860	$	496,860	$	500,585	$	407,016	$	407,016	$	407,016	$	384,090	$	420,136	$	420,136	$	420,136	$	412,081

Credit Facilities

Term Loan Facility

The Company ~~has~~had a Senior Secured Term Loan Credit Agreement, as amended (the ‘‘Term Loan Facility’’), that was scheduled to mature on July 28, 2020.

On September 1, 2017, the Company reduced the Term Loan Facility commitment to $102.0 million from $174.0 million. The reduction was accounted for as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which resulted in a realized loss of $0.6 million and was recorded on the Consolidated Statements of Operations as a loss on extinguishment of debt.

On January 31, 2018, the Company voluntarily prepaid the remaining $102.0 million outstanding on the Term Loan Facility in accordance with its terms. The payment was accounted for as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which resulted in a realized loss of $0.9 million and was recorded on the Consolidated Statements of Operations as a loss on extinguishment of debt.

Revolving Credit Facility

The Company had a Senior Secured Revolving Credit Agreement, as amended (the ‘‘Revolving Credit Facility’’ and collectively with the Term Loan Facility, the ‘‘Facilities’’), with ING Capital LLC, as Administrative Agent, in order to borrow funds to make additional investments.

The pricing inon the ~~case of the Term Loan~~Revolving Credit Facility ~~for LIBOR loans is~~was LIBOR (with no minimum) plus ~~3.00%. The pricing on the Revolving Credit Facility, is LIBOR (with no minimum) plus~~ 2.75%~~. The pricing on both the Term Loan Facility~~ and ~~Revolving Credit Facility will decrease by an additional 25 basis points upon receiving an investment grade rating from Standard & Poor’s.~~

~~The Term Loan Facility’s bullet maturity is July 28, 2020 and the Revolving Credit Facility’s~~had a revolving period ~~ends~~that was to end July 28, 2019, followed by a ~~one-year~~one year amortization period and a final maturity on July 28, 2020.

On February 14, 2017, the Company elected to reduce the total commitment of the Revolving Credit Facility to $200.0 million from $343.5 million. The reduction was accounted for as a debt modification to a line-of credit or revolving-debt arrangement in accordance with ASC 470-50, Modifications and Extinguishments, which attributed to an acceleration of debt issuance costs in the amount of $1.3 million and recorded on the Consolidated Statements of Operations as a component of interest and financing expenses.

On ~~September 1, 2017,~~February 12, 2018, the Company ~~reduced~~elected to reduce the ~~Term Loan~~total commitment of the Revolving Credit Facility ~~commitment~~ to ~~$102.0~~$150.0 million from ~~$174.0~~$200.0 million. The reduction was accounted for as a debt modification to a line-of credit or revolving-debt arrangement in accordance with ASC 470-50, Modifications and Extinguishments, which attributed to an acceleration of debt issuance costs in the amount of $0.4 million and recorded on the Consolidated Statements of Operations as a component of interest and financing expenses.

On September 28, 2018, the Company voluntarily satisfied and terminated the commitments under the Revolving Credit Facility in accordance with its terms. The termination was accounted for as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which ~~attributed to~~resulted in a realized loss of ~~$0.6~~$1.0 million and was recorded on the Consolidated Statements of Operations as a loss on extinguishment of debt.

Borrowings under the Facilities are subject to, among other things, a minimum borrowing/collateral base, and substantially all of the Company’s assets are pledged as collateral under the Facilities. In addition, the Facilities require the Company to, among other things (i) make representations and warranties regarding the collateral as well the Company’s business and operations, (ii) agree to certain indemnification obligations and (iii) agree to comply with various affirmative and negative covenants. The documentation for each of the Facilities also includes default provisions such as the failure to make timely payments under the Facilities, the occurrence of a change in control and the failure by the Company to materially perform under the operative agreements governing the Facilities, which, if not complied with, could accelerate repayment under the Facilities, thereby materially and adversely affecting the Company’s liquidity, financial condition and results of operations.

At December 31, 2017, the carrying amount of our borrowings under the Facilities approximated their fair value. The fair values of our debt obligations are determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of our borrowings under the Facilities are estimated based upon market interest rates for our own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. As of December 31, 2017 and September 30, 2017, the valuation of the Facilities would be deemed to be Level 3 in the fair value hierarchy, as defined in Note 4.

In accordance with ASU 2015-03, the debt issuance costs related to the Facilities are reported on the Consolidated Statements of Assets and Liabilities as a direct deduction from the face amount of the Facilities. As of December 31, 2017 and September 30, 2017, debt issuance costs related to the Facilities were as follows (dollars in thousands):

December 31, 2017 September 30, 2017

Revolving
Facility

Term
Facility

Revolving
Facility

Term
Facility
Total Debt Issuance Costs $ 8,546
$ 4,490
$ 8,546
$ 4,490
Amortized Debt Issuance Costs 6,927
3,537
6,769
3,444
Unamortized Debt Issuance Costs $ 1,619

$ 953

$ 1,777

$ 1,046

The following table shows the components of interest expense, commitment fees related to the Facilities, amortized debt issuance costs, weighted average stated interest rate and weighted average outstanding debt balance for the Facilities for the three and six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016~~2018 (dollars in thousands):


	For the three months ended December 31						For the three months ended March 31						For the six months ended March 31
	2017			2016			2019			2018			2019			2018
Revolving Facility interest	$	410		$	21		$	—		$	304		$	—		$	714
Revolving Facility commitment fee	410			872			—			364			—			774
Term Facility interest	1,122			1,600			—			384			—			1,505
Amortization of debt issuance costs	252			559			—			562			—			814
Agency and other fees	18			19			—			18			—			38
Total	$	2,212		$	3,071		$	—		$	1,632		$	—		$	3,845
Weighted average stated interest rate	4.3		%	3.7		%	—		%	4.6		%	—		%	4.4		%
Weighted average outstanding balance	$	141,402		$	176,087		$	—		$	60,633		$	—		$	101,462

Unsecured Notes

~~2019 Notes~~

On March 21, 2012, the Company issued $40.0 million in aggregate principal amount of 7.125% unsecured notes which were scheduled to mature on March 30, 2019 (the "2019 Notes"). The 2019 Notes bore interest at a rate of 7.125% per year, and were payable quarterly on March 30, June 30, September 30 and December 30 of each year, beginning June 30, 2012. The 2019 Notes were listed on the NYSE and traded thereon under the trading symbol “MCQ”. On February 22, 2017, the 2019 Notes were redeemed at par plus accrued and unpaid interest. The redemption was accounted for as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which attributed to a realized loss of $0.5 million.

2021 Notes

On December 17, 2015, the Company issued $70.8 million in aggregate principal amount of 6.50% unsecured notes that mature on January 30, 2021 (the “2021 Notes”). On January 14, 2016, the Company closed an additional $3.25 million in aggregate principal amount of the 2021 Notes, pursuant to the partial exercise of the underwriters’ option to purchase additional notes. The 2021 Notes may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after January 30, 2019. The 2021 Notes bear interest at a rate of 6.50% per year, payable quarterly on January 30, April 30, July 30 and October 30 of each year, beginning January 30, 2016. The 2021 Notes are listed on the NYSE and trade thereon under the trading symbol “MCX”.

2023 Notes

On March 18, 2013, the Company issued $60.0 million in aggregate principal amount of 6.125% unsecured notes that mature on March 30, 2023 (the ~~"2023 Notes," and together with the 2019 Notes and 2021 Notes, the “Unsecured~~“2023 Notes”). On March 26, 2013, the Company closed an additional $3.5 million in aggregate principal amount of the 2023 Notes, pursuant to the partial exercise of the underwriters’ option to purchase additional notes. As of March 30, 2016, the 2023 Notes may be redeemed in whole or in part at any time or from time to time at the Company's option. The 2023 Notes bear interest at a rate of 6.125% per year, payable quarterly on March 30, June 30, September 30 and December 30 of each year, beginning June 30, 2013. The 2023 Notes are listed on the NYSE and trade thereon under the trading symbol “MCV”.

On December 12, 2016, the Company entered into an “At-The-Market” (“ATM”) debt distribution agreement with FBR Capital Markets & Co., through which the Company could offer for sale, from time to time, up to $40.0 million in aggregate principal amount of the 2023 Notes. The Company ~~has~~ sold 1,573,872 of the 2023 Notes at an average price of $25.03 per note, and ~~has~~ raised $38.6 million in net proceeds, ~~since inception of~~through the ATM debt distribution agreement.

On March 10, 2018, the Company redeemed $13.0 million in aggregate principal amount of the 2023 Notes. The redemption was accounted for as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which resulted in a realized loss of $0.3 million and was recorded on the Consolidated Statements of Operations as a loss on extinguishment of debt.

On December 31, 2018, the Company redeemed $12.0 million in aggregate principal amount of the 2023 Notes. The redemption was accounted for as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which resulted in a realized loss of $0.2 million and was recorded on the Consolidated Statements of Operations as a loss on extinguishment of debt.

2024 Notes

On January 26, 2018, the Company priced a debt offering in Israel of $121.3 million Series A Notes (the “2024 Notes,” and together with the 2021 Notes and the 2023 Notes, the “Unsecured Notes”). The 2024 Notes will mature on February 27, 2024 and the principal will be payable in four annual installments, of which 25% will be payable on each February 27 for the years 2021 through 2024. The 2024 Notes are listed on the Tel Aviv Stock Exchange (“TASE”) and denominated in New Israeli Shekels, but linked to the US Dollar at a fixed exchange rate which mitigates any currency exposure to the Company. The 2024 Notes have not been and will not be registered under the Securities Act of 1933, and may not be offered or sold in the United States absent registration under the Securities Act or in transactions exempt from, or not subject to, such registration requirements. In connection with this offering, we have dual listed our common stock on TASE. As of March 27, 2018, the 2024 Notes may be redeemed in whole or in part at anytime or from time to time at the Company's option. The 2024 Notes bear interest at a rate of 5.55% per year, payable semi-annually on February 27 and August 27 of each year, beginning August 27, 2018.

The 2024 Notes have not been and will not be registered under the Securities Act of 1933, and may not be offered or sold in the United States absent registration under the Securities Act of 1933 or in transactions exempt from, or not subject to, such registration requirements. The 2024 Notes are listed for trading on the TASE and denominated in New Israeli Shekels, but linked to the US Dollar at a fixed exchange rate which mitigates any currency exposure to the Company. In connection with this offering, we have dual listed our common stock on the TASE.

As of March 31, 2019, the Company has net assets of less than $285 million. As a result, upon filing of this quarterly report on Form 10-Q, the interest rate on the 2024 Notes will increase by one-half percent (0.50%) per annum in accordance with the deed of trust governing the 2024 Notes. The 2024 Notes include certain trigger events that result in an increase in the interest rate on the 2024 Notes, including the Company having net assets of less than $285 million or the Company not satisfying the 70% maximum debt to total assets covenant. If the Company does not satisfy either of these tests, then the interest rate on the 2024 Notes increases by one-half percent (0.50%) per annum, which is the maximum amount that the interest rate will increase. The effective date of the increase is the date that the Company publishes its financial statements indicating the non-compliance, and the rate increase continues until the next publication date of the Company’s financial statement demonstrating compliance with the foregoing tests.

The deed of trust governing the 2024 Notes includes certain customary covenants, including minimum net assets of $275 million and a maximum debt to total assets ratio of 70%. The date for determining compliance with these financial covenants is the date that the Company publishes its financial statements (i.e., in a quarterly report on Form 10-Q or an annual report on Form 10-K) with the SEC. If the Company does not satisfy these financial covenants for two consecutive quarters, it is an event of default under the deed of trust governing the 2024 Notes. If this event of default is expected to occur, the Company has the right to request the trustee under the 2024 Notes to appoint an emergency committee of the three largest noteholders for the purpose of obtaining a one-quarter extension of time to satisfy the financial covenants. If the Company does not make this request and the breach occurs, or if the emergency committee does not grant the extension, then the trustee is required to convene a meeting of the noteholders as described below.

In addition to not complying with the financial covenants as described above, the events of default include: (i) a change of control of the Company (defined in the deed of trust as MCC Advisors’ ceasing to provide investment management or advisory services to the Company); (ii) the Company not publishing a tender offer for the purchase of all of the 2024 Notes within 45 days; (iii) the Company not paying any amount due and payable to the holders of the 2024 Notes within seven business days after the payment due date; (iv) certain insolvency and receivership events with respect to the

Company or with respect to all or substantially all of its assets, and (v) the 2024 Notes being delisted from the TASE or the TASE’s suspension of trading of the 2024 Notes for more than 60 days.

If an event of default occurs under the deed of trust governing the 2024 Notes, there is no automatic acceleration or mandatory redemption of the 2024 Notes. Rather, the trustee is required to convene a meeting of the noteholders for a vote on whether to accelerate the 2024 Notes. Noteholders holding at least 50% of the principal amount of the 2024 Notes must be present at the meeting for a quorum to exist, and if a quorum exists, then the vote of a majority of the noteholders present at the meeting controls.

As of March 31, 2019, we have net assets in excess of $275 million and a maximum debt to total assets ratio of below 70%. Therefore, as of March 31, 2019, we were in compliance with the minimum net assets covenant under the 2024 Notes. However, if we experience realized losses or unrealized declines in the fair value of the Company’s portfolio investments due to either portfolio company specific or macro-economic factors, it is reasonably likely, absent injection of capital or waivers or an amendment to the covenants set forth in the deed of trust governing the 2024 Notes, that we could not satisfy the minimum net assets covenant under the 2024 Notes as early as the date we publish financial statements for the quarter ending June 30, 2019, which would be no later than August 9, 2019. While there are no immediate consequences to breaching this financial covenant for a single period, if the Company reports net assets of less than $275 million for two consecutive quarters and does not obtain a one-quarter extension of time as described above, the holders of the 2024 Notes can require the trustee to accelerate the 2024 Notes. In that regard, if the Company’s net assets are below $275 million as of June 30, 2019, and the Company’s net assets remain below $275 million as of September 30, 2019, and the Company does not obtain an extension of time for compliance as described above or an adequate waiver or amendment, then an event of default on the 2024 Notes will occur on the date that the Company publishes its annual report on Form 10-K for the fiscal year ending September 30, 2019, which would be no later than December 16, 2019.

As of March 31, 2019, the Company’s net assets are $278 million, resulting in a cushion of approximately $3 million. It is reasonably likely that the Company’s net assets could decline by more than $3 million by June 30, 2019, which would result in a breach of the financial covenant described above. To address these matters, we may pursue alternatives which could include discussions with the trustee and holders of the 2024 Notes regarding potential waivers and/or an amendment to the covenants set forth in the deed of trust. Any such waivers or an amendment may be subject to conditions that may not be satisfied. If market or other conditions are not favorable, or if such discussions do not result in a favorable outcome, we may be unable to take any such actions or obtain waivers or an amendment from the trustee or holders of the 2024 Notes. In addition, the Company is also exploring the possibility of raising additional capital, which will have the effect of increasing the Company’s net assets, as another means to cure any future non-compliance with the financial covenants of the deed of trust. The Company continues to actively pursue the Mergers. If the Mergers are consummated, we expect it would result in the Company’s ability to comply with the financial covenants described above as the Combined Company is projected to have net assets well in excess of $275 million and debt to total assets ratio well below 70%. Alternatively, we believe we have the ability to sell certain portfolio investments and reduce other controllable cash outflows in order to increase our liquidity to levels sufficient to meet our debt obligations under the 2024 Notes and any other anticipated cash needs to meet our obligations as they become due.

The foregoing description of the terms of 2024 Notes and the deed of trust does not purport to be complete and is qualified in its entirety by reference to the full text of the deed of trust incorporated by reference as an exhibit to this quarterly report on Form 10-Q.

On June 5, 2018, the Company announced that on June 1, 2018, its board of directors authorized the Company to repurchase and retire up to $20 million of the Company’s outstanding 2024 Notes on TASE. Execution of the repurchase plan is subject to an open trading window for the Company and continued liquidity at that time and is expected to continue until the full authorized amount is purchased or market conditions change. The repurchase of the 2024 Notes is not expected to result in any material tax consequences to the Company or its note holders.

During the quarter ended December 31, 2018, the Company exchanged $1.0 million United States Dollars to New Israeli Shekels at a rate of 3.73 USD/NIS in order to repurchase the 2024 Notes on the TASE. As the 2024 Notes were trading below par at the time of the repurchase, and the USD/NIS (foreign currency) spot rate was higher than the fixed exchange rate agreed upon in the deed of trust, the Company was able to repurchase and retire 3,812,000 units, which resulted in $1,119,201 aggregate principal amount of the 2024 Notes being retired. The redemption was accounted for as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which resulted in a realized gain of $0.1 million and was recorded on the Consolidated Statements of Operations as a gain on extinguishment of debt which was netted against the $0.2 million loss on extinguishment of debt we realized from the 2023 Notes mentioned above.

The fair values of our debt obligations are determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Unsecured Notes, which are publicly traded, is based upon closing market quotes as of the measurement date. As of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017,~~2018, the Unsecured Notes would be deemed to be Level 1 in the fair value hierarchy, as defined in Note 4.

In accordance with ASU 2015-03, the debt issuance costs related to the Unsecured Notes are reported on the Consolidated Statements of Assets and Liabilities as a direct deduction from the face amount of the Unsecured Notes. As of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017,~~2018, debt issuance costs related to the Unsecured Notes were as follows (dollars in thousands):


	December 31, 2017								September 30, 2017								March 31, 2019								September 30, 2018
	2019 Notes		2021 Notes		2023 Notes		Total		2019 Notes		2021 Notes		2023 Notes		Total		2021 Notes		2023 Notes		2024 Notes		Total		2021 Notes		2023 Notes		2024 Notes		Total
Total Debt Issuance Costs	$	1,475	$	3,226	$	3,102	$	7,803	$	1,475	3226		$	3,102	$	7,803	$	3,226	$	3,102	$	6,287	$	12,615	$	3,226	$	3,102	$	6,287	$	12,615
Amortized Debt Issuance Costs	1,475		1,286		1,171		3,932		1,475		1127		1,078		3,680		2,070		1,988		1,687		5,745		1,756		1,656		965		4,377
Unamortized Debt Issuance Costs	$	—	$	1,940	$	1,931	$	3,871	$	—	$	2,099	$	2,024	$	4,123	$	1,156	$	1,114	$	4,600	$	6,870	$	1,470	$	1,446	$	5,322	$	8,238

For the three and six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016,~~2018, the components of interest expense, amortized debt issuance costs, weighted average stated interest rate and weighted average outstanding debt balance for the Unsecured Notes were as follows (dollars in thousands):


	For the three months ended December 31						For the three months ended March 31						For the six months ended March 31
	2017			2016			2019			2018			2019			2018
2019 Unsecured Notes interest	$	—		$	713
2021 Unsecured Notes interest	1,203			1,203
2023 Unsecured Notes interest	1,575			973
2023 Unsecured Notes premium	(1		)	N/A
2021 Notes interest							$	1,203		$	1,203		$	2,405		$	2,405
2023 Notes interest							1,192			1,531			2,570			3,105
2023 Notes premium							(1		)	(1		)	(1		)	(1		)
2024 Notes interest							1,644			1,090			3,166			1,091
Amortization of debt issuance costs	251			267			561			529			1,139			780
Total	$	3,028		$	3,156		$	4,599		$	4,352		$	9,279		$	7,380
Weighted average stated interest rate	6.2		%	6.5		%	6.0		%	5.9		%	5.9		%	6.1		%
Weighted average outstanding balance	$	176,860		$	177,534		$	272,016		$	261,125		$	278,539		$	218,530

SBA Debentures

On March 26, 2013, SBIC LP received an SBIC license from the SBA.

The SBIC license allows SBIC LP to obtain leverage by issuing SBA-guaranteed debentures (“SBA Debentures”), subject to the issuance of a capital commitment by the SBA and other customary procedures. ~~SBA-guaranteed debentures~~SBA Debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten year maturity. The principal amount of ~~SBA-guaranteed debentures~~SBA Debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of ~~SBA-guaranteed debentures~~SBA Debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with 10-year maturities. The SBA, as a creditor, will have a superior claim to the SBIC LP’s assets over our stockholders in the event we liquidate the SBIC LP or the SBA exercises its remedies under the ~~SBA-guaranteed debentures~~SBA Debentures issued by the SBIC LP upon an event of default.

SBA regulations currently limit the amount that the SBIC LP may borrow to a maximum of $150 million when it has at least $75 million in regulatory capital, receives a capital commitment from the SBA and has been through an examination by the SBA subsequent to licensing. In June 2018, the U.S. Senate passed the Small Business Investment Opportunity Act, which the President signed into law, that amended the Small Business Investment Act of 1958 by increasing the individual leverage limit from $150 million to $175 million, subject to SBA approvals.

On September 1, 2018, the Company repaid $15.0 million in aggregate principal amount of the SBA Debentures. The repayment was accounted for as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which resulted in a realized loss of $0.2 million and was recorded on the Consolidated Statements of Operations as a loss on extinguishment of debt.

SBIC LP received a letter from the SBA (the “SBA Letter”), dated March 14, 2019, informing SBIC LP of certain alleged regulatory issues constituting a default under the terms of the SBIC LP’s outstanding SBA Debentures. The SBA Letter stated that SBIC LP had until March 29, 2019, fifteen (15) days from the date of the SBA Letter, to provide the SBA with certain additional information regarding the alleged regulatory issues, unless extended by the SBA.

SBIC LP’s management submitted an orderly wind-down plan to the SBA to prepay the remaining $135.0 million of outstanding SBA Debentures using available cash at SBIC LP as well as the sale of assets to third parties or affiliates of SBIC LP.

On March 28, 2019, SBIC LP agreed and made a repayment of $50.0 million of outstanding SBA Debentures on April 3, 2019 using available cash at SBIC LP and the cure period was extended to April 19, 2019.

On April 18, 2019, SBIC LP agreed and made a repayment of $20.0 million of outstanding SBA Debentures on April 23, 2019 and an additional $30.0 million of outstanding SBA Debentures on April 30, 2019 using proceeds from the sale of certain assets and the cure period was extended to May 10, 2019.

On May 10, 2019, SBIC LP made the final repayment of the remaining $35.0 million of outstanding SBA Debentures using proceeds from the sale of certain assets.

The Company believes the wind-down plan of SBIC LP will not have a material impact on the Company’s net investment income per share. In addition, the Company believes the wind-down will not have an adverse impact on the Company’s other operations. The Company has received the necessary consents and waivers under the MCC Merger Agreement to permit the repayment of the outstanding SBA Debentures.

As of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017,~~2018, SBIC LP had $75.0 million in regulatory capital and had ~~$150.0~~$135.0 million SBA Debentures outstanding that mature between ~~September 2023~~March 2024 and September 2025.

Our fixed-rate SBA Debentures as of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017~~2018 were as follows (dollars in thousands):


	December 31, 2017				September 30, 2017				March 31, 2019				September 30, 2018
Rate Fix Date	Debenture Amount		Fixed All-in Interest Rate		Debenture Amount		Fixed All-in Interest Rate		Debenture Amount		Fixed All-in Interest Rate		Debenture Amount		Fixed All-in Interest Rate
September 2013	$	5,000	4.404	%	$	5,000	4.404	%
March 2014	39,000		3.951		39,000		3.951		$	29,000	3.951	%	$	29,000	3.951	%
September 2014	50,000		3.370		50,000		3.370		50,000		3.370		50,000		3.370
September 2014	6,000		3.775		6,000		3.775		6,000		3.775		6,000		3.775
September 2015	50,000		3.571		50,000		3.571		50,000		3.571		50,000		3.571
Weighted Average Rate/Total	$	150,000	3.639	%	$	150,000	3.639	%	$	135,000	3.587	%	$	135,000	3.587	%

As of ~~December~~March 31, ~~2017,~~2019, the carrying amount of the SBA Debentures approximated their fair value. The fair values of the SBA Debentures are determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the SBA Debentures are estimated based upon market interest rates for our own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. ~~As of December~~At March 31, ~~2017~~2019 and September 30, ~~2017,~~2018, the SBA Debentures would be deemed to be Level 3 in the fair value hierarchy, as defined in Note 4.

In accordance with ASU 2015-03, the debt issuance costs related to the SBA Debentures are reported on the Consolidated Statements of Assets and Liabilities as a direct deduction from the face amount of the SBA Debentures. As of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017,~~2018, debt issuance costs related to the SBA Debentures were as follows (dollars in thousands):


	December 31, 2017		September 30, 2017		March 31, 2019		September 30, 2018
Total Debt Issuance Costs	$	5,138	$	5,138	$	5,138	$	5,138
Amortized Debt Issuance Costs	2,435		2,292		3,257		3,042
Unamortized Debt Issuance Costs	$	2,703	$	2,846	$	1,881	$	2,096

For the three and six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016,~~2018, the components of interest, amortized debt issuance costs, weighted average stated interest rate and weighted average outstanding debt balance for the SBA Debentures were as follows (dollars in thousands):


	For the three months ended December 31						For the three months ended March 31						For the six months ended March 31
	2017			2016			2019			2018			2019			2018
SBA Debentures interest	$	1,376		$	1,376		$	1,194		$	1,346		$	2,415		$	2,722
Amortization of debt issuance costs	143			171			106			140			214			282
Total	$	1,519		$	1,547		$	1,300		$	1,486		$	2,629		$	3,004
Weighted average stated interest rate	3.6		%	3.6		%	3.6		%	3.6		%	3.6		%	3.6		%
Weighted average outstanding balance	$	150,000		$	150,000		$	135,000		$	150,000		$	135,000		$	150,000

Note 6. Agreements

Investment Management Agreement

We entered into an investment management agreement with MCC Advisors. Mr. Brook Taube, our Chairman and Chief Executive Officer, is a managing partner and senior portfolio manager of MCC Advisors, and Mr. Seth Taube, one of our directors, is a managing partner of MCC Advisors.

Under the terms of our investment management agreement, MCC Advisors:

determines the composition of our portfolio, the nature and timing of the changes to our portfolio and the manner of implementing such changes;

identifies, evaluates and negotiates the structure of the investments we make (including performing due diligence on our prospective portfolio companies); and

executes, closes, monitors and administers the investments we make, including the exercise of any voting or consent rights.

MCC Advisors’ services under the investment management agreement are not exclusive, and it is free to furnish similar services to other entities so long as its services to us are not impaired.

Pursuant to our investment management agreement, we pay MCC Advisors a fee for investment advisory and management services consisting of a base management fee and a two-part incentive fee.

On December 3, 2015, MCC Advisors recommended and, in consultation with the Board, agreed to reduce fees under the investment management agreement. Beginning January 1, 2016, the base management fee was reduced to 1.50% on gross assets above $1 billion. In addition, MCC Advisors reduced its incentive fee from 20% on pre-incentive fee net investment income over an 8% hurdle, to 17.5% on pre-incentive fee net investment income over a 6% hurdle. Moreover, the revised incentive fee includes a netting mechanism and is subject to a rolling three-year look back from January 1, 2016 forward. Under no circumstances will the new fee structure result in higher fees to MCC Advisors than fees under the prior investment management agreement.

The following discussion of our base management fee and two-part incentive fee reflect the terms of the fee waiver agreement executed by MCC Advisors on February 8, 2016 (the “Fee Waiver Agreement”). The terms of the Fee Waiver Agreement are effective as of January 1, 2016, and are a permanent reduction in the base management fee and incentive fee on net investment income payable to MCC Advisors for the investment advisory and management services it provides under the investment management agreement. The Fee Waiver Agreement does not change the second component of the incentive fee, which is the incentive fee on capital gains.

Base Management Fee

For providing investment advisory and management services to us, MCC Advisors receives a base management fee. The base management fee is calculated at an annual rate of 1.75% (0.4375% per quarter) of up to $1.0 billion of the Company’s gross assets and 1.50% (0.375% per quarter) of any amounts over $1.0 billion of the Company’s gross assets, and is payable quarterly in arrears. The base management fee will be calculated based on the average value of the Company’s gross assets at the end of the two most recently completed calendar quarters and will be appropriately pro-rated for any partial quarter.

On May 4, 2018, MCC Advisors voluntarily elected to waive $380,000 of the base management fee payable for the quarter ended March 31, 2018, which is shown on the Consolidated Statements of Operations.

Incentive Fee

The incentive fee has two components, as follows:

Incentive Fee Based on Income

The first component of the incentive fee is payable quarterly in arrears and is based on our pre-incentive fee net investment income earned during the calendar quarter for which the incentive fee is being calculated. MCC Advisors is entitled to receive the incentive fee on net investment income from us if our Ordinary Income (as defined below) exceeds a quarterly “hurdle rate” of 1.5%. The hurdle amount is calculated after making appropriate adjustments to the Company’s net assets, as determined as of the beginning of each applicable calendar quarter, in order to account for any capital raising or other capital actions as a result of any issuances by the Company of its common stock (including issuances pursuant to our dividend reinvestment plan), any repurchase by the Company of its own common stock, and any dividends paid by the Company, each as may have occurred during the relevant quarter.

Beginning with the calendar quarter that commenced on January 1, 2016, the incentive fee on net investment income is determined and paid quarterly in arrears at the end of each calendar quarter by reference to our aggregate net investment income, as adjusted as described below, from the calendar quarter then ending and the eleven preceding calendar quarters (or if shorter, the number of quarters that have occurred since January 1, 2016). We refer to such period as the “Trailing Twelve Quarters.”

The hurdle amount for the incentive fee on net investment income is determined on a quarterly basis, and is equal to 1.5% multiplied by the Company’s net asset value at the beginning of each applicable calendar quarter comprising the relevant Trailing Twelve Quarters. The hurdle amount is calculated after making appropriate adjustments to the Company’s net assets, as determined as of the beginning of each applicable calendar quarter, in order to account for any capital raising or other capital actions as a result of any issuances by the Company of its common stock (including issuances pursuant to our dividend reinvestment plan), any repurchase by the Company of its own common stock, and any dividends paid by the Company, each as may have occurred during the relevant quarter. The incentive fee for any partial period will be appropriately ~~prorated.~~pro-rated. Any incentive fee on net investment income will be paid to MCC Advisors on a quarterly basis, and will be based on the amount by which (A) aggregate net investment income (“Ordinary Income”) in respect of the relevant Trailing Twelve Quarters exceeds (B) the hurdle amount for such Trailing Twelve Quarters. The amount of the excess of (A) over (B) described in this paragraph for such Trailing Twelve Quarters is referred to as the “Excess Income Amount.” For the avoidance of doubt, Ordinary Income is net of all fees and expenses, including the reduced base management fee but excluding any incentive fee on Pre-Incentive Fee net investment income or on the Company’s capital gains.

Determination of Quarterly Incentive Fee Based on Income

The incentive fee on net investment income for each quarter is determined as follows:

No incentive fee on net investment income is payable to MCC Advisors for any calendar quarter for which there is no Excess Income Amount;

100% of the Ordinary Income, if any, that exceeds the hurdle amount, but is less than or equal to an amount, which we refer to as the “Catch-up Amount,” determined as the sum of 1.8182% multiplied by the Company’s net assets at the beginning of each applicable calendar quarter, as adjusted as noted above, comprising the relevant Trailing Twelve Quarters is included in the calculation of the incentive fee on net investment income; and

17.5% of the Ordinary Income that exceeds the Catch-up Amount is included in the calculation of the incentive fee on net investment income.

The amount of the incentive fee on net investment income that will be paid to MCC Advisors for a particular quarter will equal the excess of the incentive fee so calculated minus the aggregate incentive fees on net investment income that were paid in respect of the first eleven calendar quarters (or the portion thereof) included in the relevant Trailing Twelve Quarters but not in excess of the Incentive Fee Cap (as described below).

The incentive fee on net investment income that is paid to MCC Advisors for a particular quarter is subject to a cap (the “Incentive Fee Cap”). The Incentive Fee Cap for any quarter is an amount equal to (a) 17.5% of the Cumulative Net Return (as defined below) during the relevant Trailing Twelve Quarters minus (b) the aggregate incentive fees on net investment income that were paid in respect of the first eleven calendar quarters (or the portion thereof) included in the relevant Trailing Twelve Quarters.

“Cumulative Net Return” means (x) the Ordinary Income in respect of the relevant Trailing Twelve Quarters minus (y) any Net Capital Loss (as described below), if any, in respect of the relevant Trailing Twelve Quarters. If, in any quarter, the Incentive Fee Cap is zero or a negative value, the Company will pay no incentive fee on net investment income to MCC Advisors for such quarter. If, in any quarter, the Incentive Fee Cap for such quarter is a positive value but is less than the incentive fee on net investment income that is payable to MCC Advisors for such quarter (before giving effect to the Incentive Fee Cap) calculated as described above, the Company will pay an incentive fee on net investment income to MCC Advisors equal to the Incentive Fee Cap for such quarter. If, in any quarter, the Incentive Fee Cap for such quarter is equal to or greater than the incentive fee on net investment income that is payable to MCC Advisors for such quarter (before giving effect to the Incentive Fee Cap) calculated as described above, the Company will pay an incentive fee on net investment income to MCC Advisors, calculated as described above, for such quarter without regard to the Incentive Fee Cap.

“Net Capital Loss” in respect of a particular period means the difference, if positive, between (i) aggregate capital losses, whether realized or unrealized, and dilution to the Company’s net assets due to capital raising or capital actions, in such period and (ii) aggregate capital gains, whether realized or unrealized and accretion to the Company’s net assets due to capital raising or capital action, in such period.

to the Company’s net assets due to other capital action is calculated, in the case of repurchases by the Company of its own common stock, as the excess of the amount by which the net asset value per share was adjusted over the transaction price per share multiplied by the number of shares repurchased by the Company.

Incentive Fee Based on Capital Gains

The second component of the incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the investment management agreement as of the termination date) and equals 20.0% of our cumulative aggregate realized capital gains less cumulative realized capital losses, unrealized capital depreciation (unrealized depreciation on a gross investment-by-investment basis at the end of each calendar year) and all capital gains upon which prior performance-based capital gains incentive fee payments were previously made to the investment adviser.

Under GAAP, the Company calculates the second component of the incentive fee as if the Company had realized all assets at their fair values as of the reporting date. Accordingly, when applicable, the Company accrues a provisional capital gains incentive fee taking into account any unrealized gains or losses. As the provisional capital gains incentive fee is subject to the performance of investments until there is a realization event, the amount of the provisional capital gains incentive fee accrued at a reporting date may vary from the capital gains incentive that is ultimately realized and the differences could be material.

Base Management Fee - Prior to Fee Waiver Agreement

~~The~~Prior to January 1, 2016, the base management fee was calculated at an annual rate of 1.75% of our gross assets (which is defined as all the assets of ~~Medley Capital,~~the Company, including those acquired using borrowings for investment purposes), and was payable quarterly in arrears. The base management fee was based on the average value of our gross assets at the end of the two most recently completed calendar quarters.

Incentive Fee - Prior to Fee Waiver Agreement

~~The~~Prior to January 1, 2016, the incentive fee based on net investment income was calculated as 20.0% of the amount, if any, by which our pre-incentive fee net investment income, expressed as a rate of return on the value of our net assets calculated as of the end of the calendar quarter immediately preceding the calendar quarter for which the incentive fee is being calculated, exceeds a 2.0% (which is 8.0% annualized) hurdle rate but also includes a ~~“‘catch-up’~~“catch-up” provision. Under this provision, in any calendar quarter, our investment adviser receives no incentive fee until our net investment income equals the hurdle rate of 2.0%, but then receives, as a “catch-up”, 100% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.5%. The effect of this provision is that, if pre-incentive fee net investment income exceeds 2.5% in any calendar quarter, our investment adviser will receive 20% of our pre-incentive fee net investment income as if the hurdle rate did not apply. For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies accrued during the calendar quarter, minus our operating expenses for the quarter including the base management fee, expenses payable under the administration agreement, and any interest expense and any dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee. Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash.

For the avoidance of doubt, the purpose of the new incentive fee calculation under the Fee Waiver Agreement is to permanently reduce aggregate fees payable to MCC Advisors by the Company, effective as of January 1, 2016. In order to ensure that the Company will pay MCC Advisors lesser aggregate fees on a cumulative basis, as calculated beginning January 1, 2016, we will, at the end of each quarter, also calculate the base management fee and incentive fee on net investment income owed by the Company to MCC Advisors based on the formula in place prior to January 1, 2016. If, at any time beginning January 1, 2016, the aggregate fees on a cumulative basis, as calculated based on the formula in place after January 1, 2016, would be greater than the aggregate fees on a cumulative basis, as calculated based on the formula in place prior to January 1, 2016, MCC Advisors shall only be entitled to the lesser of those two amounts.

For the three and six months ended ~~December~~March 31, ~~2017 and 2016,~~2019, the Company incurred base management fees to MCC Advisors of ~~$4.1~~$3.1 million and ~~$4.5~~$6.3 million, respectively. For the three and six months ended March 31, 2018, the Company incurred base management fees to MCC Advisors of $3.8 million and $7.8 million, respectively.

For the three and six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016,~~2018, the Company did not waive any management fees under the Fee Waiver Agreement. For the three and six months ended March 31, 2018, base management fees, net of ~~$0 and $19,945 waived under~~ the ~~Fee Waiver Agreement were $4.1~~voluntary $0.4 million waiver was $3.4 million and ~~$4.5~~$7.4 million, respectively.

The incentive fees shown in the Consolidated Statements of Operations are calculated using the fee structure set forth in investment management agreement, and then adjusted to reflect the terms of the Fee Waiver Agreement. Pursuant to the investment management agreement, ~~pre -incentive~~pre-incentive fee net investment income is compared to a hurdle rate of 2.0% of the net asset value at the beginning of the period and is calculated as follows:


1)	No incentive fee is recorded during the quarter in which our pre-incentive fee net investment income does not exceed the hurdle rate;


2)	100% of pre-incentive fee net investment income that exceeds the hurdle rate but is less than 2.5% in the quarter; and


3)	20.0% of the amount of pre-incentive fee net investment income, if any, that exceeds 2.5% of the hurdle rate.

For purposes of implementing the fee waiver under the Fee Waiver Agreement, we calculate the incentive fee based upon the formula that exists under the investment management agreement, and then apply the terms of ~~wavier~~waiver set forth in the Fee Waiver Agreement, if applicable.

For the three and six months ended ~~December~~March 31, ~~2017,~~2019 and 2018, the Company did not incur any incentive fees on net investment income because pre-incentive fee net investment income did not exceed the hurdle amount under the formula that exists under the investment management agreement. ~~For the three months ended December 31, 2016, we incurred $0.9 million of incentive fees related to pre-incentive fee net investment income.~~

~~For the three months ended December 31, 2017 and 2016, incentive fees, net of $0 and $43,663 waived under the Fee Waiver Agreement were $0 and $0.9 million.~~

As of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017, $4.1~~2018, $3.1 million and ~~$4.3~~$3.3 million, respectively, were included in “management and incentive fees payable” in the accompanying Consolidated Statements of Assets and Liabilities.

Administration Agreement

On January 19, 2011, the Company entered into an administration agreement with MCC Advisors. Pursuant to ~~this~~the administration agreement, MCC Advisors furnishes us with office facilities and equipment, clerical, bookkeeping, recordkeeping and other administrative services related to the operations of the Company. We reimburse MCC Advisors for our allocable portion of overhead and other expenses incurred by it performing its obligations under the administration agreement, including rent and our allocable portion of the cost of ~~certain of~~ our ~~officers~~Chief Financial Officer and Chief Compliance Officer and their respective ~~staff.~~staffs. From time to time, our administrator may pay amounts owed by us to third-party service providers and we will subsequently reimburse our administrator for such amounts paid on our behalf. For the three and six months ended ~~December~~March 31, ~~2017 and 2016,~~2019, we incurred ~~$0.9~~$0.7 million and ~~$0.9~~$1.7 million in administrator expenses, respectively. For the three and six months ended March 31, 2018, we incurred $1.0 million and $1.8 million in administrator expenses, respectively.

As of March 31, 2019 and September 30, 2018, $0.7 million and $0.8 million, respectively, were included in “administrator expenses payable” in the accompanying Consolidated Statements of Assets and Liabilities.

Note 7. Related Party Transactions

Due to Affiliate

Due to affiliate consists of certain general and administrative expenses paid by an affiliate on behalf of the Company.

Other Related Party Transactions

Certain affiliates of MCC Advisors, Medley Capital LLC, their respective affiliates and some of their employees purchased in the IPO an aggregate of 833,333 shares of common stock at the IPO price per share of $12.00. The Company received the full proceeds from the sale of these shares, and no underwriting discounts or commissions were paid in respect of these shares.

Opportunities for co-investments may arise when MCC Advisors or an affiliated investment adviser becomes aware of investment opportunities that may be appropriate for the Company, ~~and~~ other clients, or affiliated funds. ~~The~~On November 25, 2013, the Company obtained an exemptive order from the SEC ~~on November 25, 2013~~that permits us to participate in negotiated co-investment transactions with certain affiliates, each of whose investment adviser is Medley, LLC or an investment adviser controlled by Medley, LLC in a manner consistent with our investment objective, strategies and restrictions, as well as regulatory requirements and other pertinent factors (the “Prior Exemptive Order”). On March 29, 2017, the Company, MCC Advisors and certain other affiliated funds and investment advisers received an exemptive order (the “Exemptive Order”) that supersedes the Prior Exemptive Order and allows affiliated registered investment companies to participate in co-investment transactions with us that would otherwise have been prohibited under Section 17(d) and 57(a)(4) of the 1940 Act and Rule 17d-1 thereunder. On October 4, 2017, the Company, MCC Advisors and certain of our affiliates received an exemptive order that supersedes the Exemptive Order (the ~~“New~~“Current Exemptive Order”) and allows, in addition to the entities already covered by the Exemptive Order, Medley LLC and its subsidiary, Medley Capital LLC, to the extent they hold financial assets in a principal capacity, and any direct or indirect, wholly- or majority-owned subsidiary of Medley LLC that is formed in the future, to participate in co-investment transactions with us that would otherwise be prohibited by either or both of Sections 17(d) and 57(a)(4) of the 1940 Act. If the Mergers are successfully consummated, Sierra and certain of its affiliates will not be able to rely on the Current Exemptive Order. In this regard, on November 19, 2018, Sierra and certain of its affiliates have submitted an exemptive application to the SEC for an exemptive order that would supersede the Current Exemptive Order (the “Superseding Exemptive Order”) and would permit Sierra to participate in negotiated co- investment transactions with certain affiliates that would otherwise be prohibited by either or both of Sections 17(d) and 57(a)(4) of the 1940 Act. There can be no assurance if and when Sierra will receive the Superseding Exemptive Order. The terms of the ~~New~~Superseding Exemptive Order, ~~are otherwise~~if received, would be substantially similar to the Current Exemptive Order. Co-investment under the Superseding Exemptive Order is subject to certain conditions therein, including the condition that, in the case of each co-investment transaction, ~~our~~the board of directors determines that it would to be in ~~our~~Sierra’s best interest to participate in the transaction. The Current Exemptive Order will remain in effect

unless and until the Mergers are completed and the Superseding Exemptive Order is granted by the SEC. However, neither we nor the affiliated funds are obligated to invest or co-invest when investment opportunities are referred to us or them.

Note 8. Commitments

Guarantees

The Company has a guarantee to issue up to $7.0 million in standby letters of credit through a financial intermediary on behalf of a certain portfolio company. Under this arrangement, if the standby letters of credit were to be issued, the Company would be required to make payments to third parties if the portfolio company was to default on its related payment obligations. The guarantee will renew annually until cancellation. As of ~~December~~March 31, ~~2017,~~2019 and September 30, 2018, the Company had not issued any standby letters of credit under the commitment on behalf of the portfolio company. ~~The guarantee will renew annually until cancellation.~~

Unfunded commitments

As of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017,~~2018, we had commitments under loan and financing agreements to fund up to ~~$34.0~~$15.2 million to 1713 portfolio companies and ~~$23.7~~$36.1 million to 1517 portfolio companies, respectively. These commitments are primarily composed of senior secured term loans and revolvers, and ~~an analysis~~the determination of their fair value is included in the Consolidated Schedule of Investments. The commitments are generally subject to the borrowers meeting certain criteria such as compliance with covenants and certain operational metrics. The terms of the borrowings and financings subject to commitment are comparable to the terms of other loan and equity securities in our portfolio. A summary of the composition of the unfunded commitments as of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017~~2018 is shown in the table below (dollars in thousands):


	December 31, 2017		September 30, 2017		March 31, 2019		September 30, 2018
Path Medical, LLC - Delayed Draw Term Loan B	$	7,125	$	—
SMART Financial Operations, LLC - Delayed Draw Term Loan	4,725		4,725
Barry's Bootcamp Holdings, LLC - Revolver	4,400		4,400
Accupac, Inc. - Delayed Draw Term Loan	2,612		2,612		$	2,612	$	2,612
RMS Holding Company, LLC - Revolver	2,327		—
Alpine SG, LLC - Delayed Draw Term Loan	1,857		—
SFP Holding, Inc. - Delayed Draw Term Loan	1,778		1,778
Manna Pro Products, LLC - Delayed Draw Term Loan	1,600		—
Dynamic Energy Services International LLC - Revolver					1,892		—
DataOnline Corp. - Revolver					1,890		1,890
Barry's Bootcamp Holdings, LLC - Delayed Draw Term Loan	1,271		1,271		1,271		1,271
AAR Intermediate Holdings, LLC - Revolver	1,258		1,797
1888 Industrial Services, LLC - Revolver					1,258		719
Trans-Fast Remittance LLC - Delayed Draw Term Loan	1,057		1,057		1,057		1,057
Alpine SG, LLC - Revolver	1,000		—		1,000		1,000
Black Angus Steakhouses, LLC - Delayed Draw Term Loan	893		893		893		893
Impact Sales, LLC - Delayed Draw Term Loan	755		755
Redwood Services Group, LLC - Revolver					875		1,750
RMS Holding Company, LLC - Revolver					691		2,327
Barry's Bootcamp Holdings, LLC - Revolver					660		2,200
Manna Pro Products, LLC - Delayed Draw Term Loan					429		429
Black Angus Steakhouses, LLC - Revolver	535		516		313		625
Brook & Whittle Holdings Corp. - Delayed Draw Term Loan	310		—
Path Medical, LLC - Delayed Draw Term Loan C					295		—
Access Media Holdings, LLC - Series AAA Preferred Equity					101		173
SFP Holding, Inc. - Delayed Draw Term Loan					—		2,765
Central States Dermatology Services, LLC - Delayed Draw Term Loan	200		254		—		137
SavATree, LLC - Delayed Draw Term Loan	167		167		—		123
Access Media Holdings, LLC - Series AAA Preferred Equity	107		277
Engineered Machinery Holdings, Inc. - Delayed Draw Term Loan	29		159
CP OPCO, LLC - Revolver	—		1,973
Brantley Transportation LLC - Delayed Draw Term Loan	—		788
NVTN LLC - Delayed Draw Term Loan	—		250
Impact Group, LLC - Delayed Draw Term Loan					—		8,567
Redwood Services Group, LLC - Delayed Draw Term Loan					—		4,839
SMART Financial Operations, LLC - Delayed Draw Term Loan					—		2,400
Brook & Whittle Holding Corp. - Delayed Draw Term Loan					—		310
Total	$	34,006	$	23,672	$	15,237	$	36,087

Legal Proceedings

We are a party to certain legal proceedings incidental to the normal course of our business, including where third parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. While the outcome of these legal proceedings cannot at this time be predicted with certainty, other than the legal proceeding disclosed below, we do not expect that these proceedings will have a material effect on our financial condition or results of operations.

On February 11, 2019, a putative stockholder class action related to the MCC Merger was commenced in the Court of Chancery of the State of Delaware by FrontFour. The action, as consolidated, is captioned In re Medley Capital Corporation Stockholder Litigation, C.A. No. 2019-0100-KSJM (the “Class Action”). The complaint alleged that the Company’s directors (Brook Taube, Seth Taube, Jeff Tonkel, Mark Lerdal, Karin Hirtler-Garvey, John E. Mack, and Arthur S. Ainsberg) breached their fiduciary duties to the Company’s stockholders in connection with the MCC Merger, and that MDLY, Sierra, MCC Advisors, Medley Group LLC, and Medley LLC aided and abetted those alleged breaches of fiduciary duties. On March 11, 2019, following a two-day trial, the Court issued the Decision denying FrontFour’s requests to (i) permanently enjoin the MCC Merger and (ii) require the Company to conduct a “shopping process” for the Company on terms proposed by FrontFour in its complaint. The Court held that the Company’s directors breached their fiduciary duties in entering into the MCC Merger, but rejected FrontFour’s claim that Sierra aided and abetted those breaches of fiduciary duties. The Court ordered defendants to issue corrective disclosures consistent with the Decision, and enjoined a vote of the Company’s stockholders on the MCC Merger until such disclosures have been made and stockholders have had the opportunity to assimilate this information.

On April 15, 2019, certain parties in the Class Action reached agreement on the principal terms of a settlement, which are contained in the Settlement Term Sheet, among the Medley Parties, on the one hand, and FrontFour, on behalf of itself and a class of similarly situated stockholders of the Company, on the other hand. The Settlement Term Sheet is intended to form the basis of a definitive stipulation of settlement in the Class Action. The Settlement Term Sheet provides that the Company will seek to obtain the agreement and/or consent of Sierra to effect certain amendments to (i) the MCC Merger Agreement and (ii) the MDLY Merger Agreement. If the foregoing amendments are entered into they will, among other matters (as described in further detail in the Settlement Term Sheet): (a) extend the Outside Date (as defined in the Merger Agreements) to October 31, 2019; (b) permit the MCC Special Committee to undertake a sixty-day “go shop” process to solicit superior transactions to the MCC Merger and (c) if the MCC Merger is consummated, create a settlement fund, consisting of $17 million in cash and $30 million of Sierra stock, with the number of shares of Sierra stock to be calculated using the pro forma NAV reported in the future proxy supplement describing the amendments to the MCC Merger Agreement, which will be distributed to eligible members of the Class (as defined in the Settlement Term Sheet). In connection with the Settlement Term Sheet, MDLY has executed an acknowledgement and agreement to take certain actions, including consenting to certain amendments to the Merger Agreements, in furtherance of the transactions contemplated thereby.

Under the Settlement Term Sheet, the parties have agreed to cooperate to reduce the agreements reflected therein to the Settlement Stipulation, and to obtain approval of Court of Chancery of the State of Delaware as soon as reasonably practicable thereafter. The Settlement Stipulation will provide for mutual releases between and among FrontFour and the Class, on the one hand, and the Medley Parties, on the other hand, of all claims that were or could have been asserted in the Class Action. The Medley Parties will also release all claims arising out of or relating to the prosecution and settlement of the Class Action and all claims that were or could have been asserted (other than claims against NexPoint Advisors, L.P. and its affiliates) in the litigation pending in the United States District Court for the Southern District of New York captioned Medley Capital Corporation v. FrontFour Capital Group LLC, et al., No. 1:19-cv-02055-LTS (S.D.N.Y.) (the “Federal Action”), and FrontFour and the Class will release all claims arising out of or relating to the prosecution and settlement of the Federal Action.

Note 9. Fee Income

Fee income consists of origination/closing ~~fee,~~fees, amendment ~~fee,~~fees, prepayment penalty fees, administrative agent ~~fee,~~fees, and other miscellaneous fees. The following tables summarize the Company’s fee income for the three and six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016~~2018 (dollars in thousands):

For the three months ended December 31
2017 2016
Origination fee $ 1,456
$ 727
Amendment fee 179
105
Administrative agent fee 162
205
Other fees 32
218
Prepayment fee 20
169
Fee income $ 1,849

$ 1,424



	For the three months ended March 31				For the six months ended March 31
	2019		2018		2019		2018
Origination fees	$	71	$	161	$	270	$	1,617
Amendment fees	88		—		202		179
Administrative agent fees	85		145		161		306
Prepayment fees	74		—		146		20
Other fees	—		190		—		222
Fee income	$	318	$	496	$	779	$	2,344

Note 10. Directors Fees

~~On December 7, 2016, the board of directors approved an amendment to the compensation model pursuant to which the~~The Company's independent directors ~~earn fees for their service on the board of directors. Prior to the amendment, as compensation for serving on our board of directors,~~ each ~~independent director received~~receive an annual fee of ~~$55,000. Independent directors~~$90,000. They also ~~received $7,500 ($1,500 for telephonic attendance)~~receive $3,000, plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each board meeting, and ~~received~~ $2,500, ~~($1,500 for telephonic attendance)~~ plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each ~~committee~~Audit Committee, Nominating and Corporate Governance Committee, and Compensation Committee meeting. ~~In addition, the Chairman~~The chair of the Audit Committee ~~received~~receives an annual fee of $25,000 and ~~each chairperson~~the chair of ~~any other committee received~~the Nominating and Corporate Governance Committee and the Compensation Committee receives an annual fee of $10,000 ~~and~~for their additional services in these capacities. In addition, other members of the Audit Committee ~~and any other standing committees received~~receive an annual fee of $12,500, and ~~$6,000, respectively, for their additional services in these capacities.~~other members of the Nominating and Corporate Governance Committee and the Compensation Committee receive an annual fee of $6,000.

~~The compensation model approved by~~On January 26, 2018, the board of directors established the MCC Special Committee, for the purpose of assessing the merits of various proposed strategic transactions. As compensation for serving on ~~December 7, 2016, which was retroactively effective as of October 1, 2016, amended~~ the ~~prior model by increasing the annual fee received by~~MCC Special Committee, each independent director ~~from $55,000 to $90,000, but decreasing~~received a one-time retainer of $25,000 plus reimbursement of out-of-pocket expenses, consistent with the ~~per~~Company’s policies for reimbursement of members of the board ~~meeting fee from $7,500 to $3,000.~~of directors. In addition, ~~there will no longer be~~the chairman of the MCC Special Committee receives a ~~different~~monthly fee of $15,000 and other members receive a monthly fee of $10,000.

On April 15, 2019, the board of directors appointed David A. Lorber and Lowell W. Robinson to the Board to fill the vacancies on the Board created by the resignations of Mark Lerdal and John E. Mack, respectively. In addition, the board of directors added: (i) Messrs. Lorber and Robinson to the MCC Special Committee, with Mr. Lorber serving as Chair of the MCC Special Committee; (ii) Mr. Lorber to the Nominating and Corporate Governance Committee and the Compensation Committee; and Mr. Robinson to the Audit Committee. In addition to the compensation described above, each of Mr.

Lorber and Mr. Robinson received the one-time retainer of $25,000 plus reimbursement of out-of-pocket expenses, consistent with the Company's policies for ~~participating in~~reimbursement of members of the board ~~and/or committee meetings telephonically.~~of directors.

No compensation is paid to directors who are ‘‘interested persons’’ of the Company (as such term is defined in the 1940 Act). For the three and six months ended ~~December~~March 31, ~~2017 and 2016,~~2019, we accrued ~~$0.1~~$0.4 million and ~~$0.2~~$0.7 million for directors’ fees expense, respectively. For the three and six months ended March 31, 2018, we accrued $0.3 million and $0.4 million for directors’ fees expense, respectively.

Note 11. Earnings Per Share

In accordance with the provisions of ASC Topic 260 - Earnings per Share, basic earnings per share is computed by dividing earnings available to common ~~shareholders~~stockholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. The Company does not have any potentially dilutive common shares as of ~~December~~March 31, ~~2017.~~2019.

The following information sets forth the computation of the weighted average basic and diluted net increase/(decrease) in net assets per share from operations for the three months ended ~~December~~March 31, ~~2017~~2019 and ~~2016~~2018 (dollars in thousands, except share and per share amounts):


	For the three months ended December 31					For the three months ended March 31						For the six months ended March 31
	2017			2016		2019			2018			2019			2018
Basic and diluted:
Net increase/(decrease) in net assets from operations	$	(31,944	)	$	6,326
Net increase/(decrease) in net assets resulting from operations						$	(24,609	)	$	(28,779	)	$	(34,687	)	$	(60,723	)
Weighted average common shares outstanding	54,474,211			54,474,211		54,474,211			54,474,211			54,474,211			54,474,211
Earnings per common share-basic and diluted	$	(0.59	)	$	0.12	$	(0.45	)	$	(0.53	)	$	(0.64	)	$	(1.11	)

Note 12. Financial Highlights

The following is a schedule of financial highlights for the ~~three~~six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016:~~2018:


	For the three months ended December 31						For the six months ended March 31
	2017			2016			2019			2018
Per share data:⁽¹⁾
Per share data⁽¹⁾:
Net asset value per share at beginning of period	$	8.45		$	9.49		$	5.90		$	8.45

Net investment income⁽²⁾	0.13			0.19			(0.16		)	0.20
Net realized gains/(losses) on investments	—			(0.12		)	(1.24		)	(0.43		)
Net unrealized appreciation/(depreciation) on investments	(0.72		)	0.05			0.76			(0.87		)
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments	—			—			—			0.01
Loss on extinguishment of debt							—			(0.02		)
Net increase/(decrease) in net assets	(0.59		)	0.12			(0.64		)	(1.11		)

Distributions from net investment income	(0.16		)	(0.22		)	(0.15		)	(0.32		)
Distributions from tax return of capital							—			—
Distributions from net realized gains	—			—			—			—
Distributions from tax return of capital	—			—
Net asset value at end of period							$	5.11		$	7.02

Net asset value at end of period	$	7.71		$	9.39
Net assets at end of period	$	419,769,455		$	511,260,387		$	278,320,976		$	382,274,960
Shares outstanding at end of period	54,474,211			54,474,211			54,474,211			54,474,211

Per share market value at end of period	$	5.22		$	7.51		$	3.11		$	3.98
Total return based on market value⁽³⁾	(9.97		)%	1.28		%	(15.83		)%	(28.71		)%
Total return based on net asset value⁽⁴⁾	(6.05		)%	1.81		%	(9.30		)%	(11.16		)%
Portfolio turnover rate⁽⁵⁾	22.70		%	17.94		%	16.50		%	25.29		%

The following is a schedule of ratios and supplemental data for the ~~three~~six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016:~~2018:


	For the three months ended December 31						For the six months ended March 31
	2017			2016			2019			2018
Ratios:
Ratio of net investment income to average net assets after waivers⁽⁵⁾⁽⁶⁾	6.25		%	8.29		%	(5.65		)%	4.90		%
Ratio of total expenses to average net assets after waivers⁽⁵⁾⁽⁶⁾	11.46		%	11.40		%	22.77		%	12.43		%
Ratio of incentive fees to average net assets after waivers⁽⁶⁾	—		%	0.16		%	—		%	—		%

Supplemental Data:
Ratio of net operating expenses and credit facility related expenses to average net assets⁽⁵⁾⁽⁶⁾	11.46		%	11.24		%
Ratio of net operating expenses and credit facility related expenses to average net assets^(5)(6)(11)							22.77		%	12.43		%
Percentage of non-recurring fee income⁽⁷⁾	8.18		%	4.68		%	2.31		%	5.41		%
Average debt outstanding⁽⁸⁾	$	468,261,799		$	503,620,657		$	413,538,818		$	469,991,053
Average debt outstanding per common share	$	8.60		$	9.25		$	7.59		$	8.63
Asset coverage ratio per unit⁽⁹⁾	2,288			2,382			2,023			2,287
Total Debt Outstanding⁽¹²⁾:
Revolving Credit Facility							$	—		$	12,000,000
Term Loan Facility							$	—		$	—
2021 Notes							$	74,012,825		$	74,012,825
2023 Notes							$	77,846,800		$	89,846,800
2024 Notes							$	120,156,489		$	121,275,690
SBA Debentures							$	135,000,000		$	150,000,000

Average market value per unit:
Facilities⁽¹⁰⁾	N/A			N/A			N/A			N/A
SBA debentures⁽¹⁰⁾	N/A			N/A			N/A			N/A
Notes due 2019	N/A			$	25.40
Notes due 2021	$	25.83		$	25.53
Notes due 2023	$	25.21		$	24.86
2021 Notes							$	25.07		$	25.68
2023 Notes							$	24.68		$	25.15
2024 Notes							$	245.62		$	283.27


(1)	Table may not foot due to rounding.


(2)	Net investment income excluding management and incentive fee waivers based on total weighted average common stock outstanding equals ~~$0.13~~$(0.16) and ~~$0.18~~$0.19 per share for the ~~three~~six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016,~~2018, respectively.


(3)	Total return is historical and assumes changes in share price, reinvestments of all dividends and distributions at prices obtained under the Company’s dividend reinvestment plan, and no sales charge for the period.


(4)	Total return is historical and assumes changes in NAV, reinvestments of all dividends and distributions at prices obtained under the Company’s dividend reinvestment plan, and no sales charge for the period.


(5)	Ratios are annualized during interim periods.

(6)

For the ~~three~~six months ended ~~December~~March 31, ~~2017,~~2019, excluding management and incentive fee waivers, the ~~ratios~~ratio of net investment income, total expenses, incentive fees, and operating expenses and credit facility related expenses to average net assets were ~~6.25%~~(5.65)%, ~~11.46%~~22.77%, 0.00%, and ~~11.46%~~22.77%, respectively. For the ~~three~~six months ended ~~December~~March 31, ~~2016,~~2018, excluding management and incentive fee waivers, the ~~ratios~~ratio of net investment income, total expenses, incentive fees, and operating expenses and credit facility related expenses to average net assets were ~~8.27%~~4.81%, ~~11.43%~~12.52%, ~~0.17%~~0.00%, and ~~11.26%~~12.52%, respectively.


(7)	Represents the impact of the non-recurring fees ~~over~~as a percentage of total investment income.


(8)	Based on daily weighted average carrying value of debt outstanding during the period.

(9)

Asset coverage per unit is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness. Asset coverage ratio per unit does not include unfunded commitments. The inclusion of unfunded commitments in the calculation of the asset coverage ratio per unit would not cause us to be below the required amount of regulatory coverage.


(10)	The Facilities and SBA Debentures are not registered for public trading.


(11)	Excludes incentive fees.


(12)	Total amount of each class of senior securities outstanding at the end of the period excluding debt issuance costs.

Note 13. Dividends

Dividends and distributions to common stockholders are recorded on the ex-dividend date. The amount to be paid out as a dividend is determined by our board of directors.

We have adopted an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a cash dividend or other distribution, each stockholder that has not “opted out” of our dividend reinvestment plan will have its dividends automatically reinvested in additional shares of our common stock rather than receiving cash dividends. Stockholders who receive distributions in the form of shares of common stock will be subject to the same federal, state and local tax consequences as if they received cash distributions.

The following table summarizes the Company’s dividend distributions during the ~~three~~six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016:~~ 2018:

Date Declared Record Date Payment Date Amount Per Share
During the three months ended December 31, 2017
10/31/2017 11/22/2017 12/22/2017 $ 0.16
$ 0.16



Date Declared	Record Date	Payment Date	Amount Per Share
During the six months ended March 31, 2019
11/16/2018	12/5/2018	12/20/2018	$	0.10
2/10/2019	2/22/2019	3/12/2019	0.05
			$	0.15

Date Declared Record Date Payment Date Amount Per Share
During the three months ended December 31, 2016
11/3/2016 11/23/2016 12/23/2016 $ 0.22
$ 0.22



Date Declared	Record Date	Payment Date	Amount Per Share
During the six months ended March 31, 2018
10/31/2017	11/22/2017	12/22/2017	$	0.16
1/30/2018	2/1/2018	3/23/2018	0.16
			$	0.32

Note 14. Stock Repurchase Program

~~On February 5, 2015, our board of directors approved~~The Company had a share repurchase program ~~pursuant to which we could purchase up to an aggregate amount of $30.0 million of our common stock between the period of the approval date and~~from February 5, ~~2016. On~~2015 to December ~~4, 2015, the board of directors extended the duration of~~31, 2017. Under the share repurchase program, through December 31, 2016, and increased the aggregate amount to $50.0 million. On December 7, 2016, the board of directors extended the duration of the share repurchase program through December 31, 2017. Any stock repurchases will be made through the open market at times, and in such amounts, as management deems appropriate. As of December 31, 2017, the Company ~~has~~ repurchased an aggregate of 4,259,073 shares of common stock at an average price of $8.00 per share with a total cost of approximately $34.1 ~~million. Since the inception of the program,~~million, and the Company's net asset value per share was increased by approximately $0.23 as a result of the share repurchases.

Note 15. Subsequent Events

Management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the Consolidated Financial Statements as of and for the ~~three~~six months ended ~~December~~March 31, ~~2017, except as disclosed below.~~

On January 30, 2018, the Company’s Board of Directors declared a quarterly dividend of $0.16 per share, payable on March 23, 2018 to stockholders of record at the close of business on February 21, 2018.

On January 26, 2018, the Company priced a debt offering in Israel of $121.1 million of its 5.05% Series A Notes (the “2024 Notes”). The 2024 Notes were issued pursuant to a deed of trust between the Company and Mishmeret Trust Company, Ltd. as trustee. The 2024 Notes are general, unsecured obligations and rank equal in right of payment with all of the Company’s existing and future unsecured indebtedness. The 2024 Notes will mature on February 27, 2024 and the principal will be payable in four annual installments, of which 25% will be payable on each February 27, 2021-2024. The 2024 Notes are rated ilA+ by S&P Global Ratings Maalot Ltd. and will be listed on the Tel Aviv Stock Exchange (“TASE”). The 2024 Notes have not been and will not be registered under the Securities Act of 1933, and may not be offered or sold in the United States absent registration under the Securities Act or in transactions exempt from, or not subject to, such registration requirements. In connection with this offering, we have dual listed our common stock on TASE. On January 31, 2018, the Company used a majority of the net proceeds from this offering to repay outstanding indebtedness under the Term Loan Facility, effectively terminating the Term Loan Facility.

2019.

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

The following discussion and analysis should be read in conjunction with our financial statements and related notes and other financial information appearing elsewhere in this quarterly on Form 10-Q.

Except as otherwise specified, references to “we,” “us,” “our,” or the “Company,” refer to Medley Capital Corporation.

Forward-Looking Statements

Some of the statements in this quarterly report on Form 10-Q constitute forward-looking statements, which relate to future events or our performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties, including statements as to:

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

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

the relative and absolute investment performance and operations of MCC ~~Advisors;~~Advisors LLC (“MCC Advisors”);

the impact of increased competition;

the impact of future acquisitions and divestitures;

our business prospects and the prospects of our portfolio companies;

the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to us or MCC Advisors;

our contractual arrangements and relationships with third parties;

any future financings by us;

the ability of MCC Advisors to attract and retain highly talented professionals;

fluctuations in foreign currency exchange rates;

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

the unfavorable resolution of legal proceedings.

Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words “trend,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “potential,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or similar expressions. The forward looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth as “Risk Factors” in our

annual report on Form 10-K filed with the ~~SEC~~Securities and Exchange Commission (“SEC”) on December ~~7, 2017,~~4, 2018, and elsewhere in this quarterly report on Form 10-Q.

We have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume no obligation to update any such forward-looking statements. Actual results could differ materially from those anticipated in our forward-looking statements, and future results could differ materially from historical performance. 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 have filed or in the future may file with the ~~Securities and Exchange Commission (“SEC”),~~SEC, including annual reports on Form 10-K, registration statements on Form N-2, quarterly reports on Form 10-Q, and current reports on Form 8-K.

Overview

We are an externally-managed, non-diversified closed-end management investment company that ~~filed an election~~has elected to be regulated as a BDC under the 1940 Act. In addition, we have elected, and ~~qualified~~intend to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code.

We commenced operations and completed our initial public offering on January 20, 2011. Our investment activities are managed by MCC Advisors and supervised by our board of directors, of which a majority of the members are independent of us.

Our investment objective is to generate current income and capital appreciation by lending to privately-held middle market companies, primarily through directly originated transactions, to help these companies fund acquisitions, growth or refinancing. Our portfolio generally consists of senior secured first lien term loans and senior secured second lien term loans. ~~In some of our investments,~~Occasionally, we receive warrants or other equity participation features, which we believe will increase the total investment returns.

On January 26, 2018, the Company priced a debt offering in Israel of $121.3 million Series A Notes (the “2024 Notes”). The 2024 Notes will mature on February 27, 2024 and the principal will be payable in four annual installments, of which 25% will be payable on each February 27 for the years 2021 through 2024. The 2024 Notes are listed on the Tel Aviv Stock Exchange (“TASE”) and denominated in New Israeli Shekels, but linked to the US Dollar at a fixed exchange rate which mitigates any currency exposure to the Company. The 2024 Notes have not been and will not be registered under the Securities Act of 1933, and may not be offered or sold in the United States absent registration under the Securities Act or in transactions exempt from, or not subject to, such registration requirements. In connection with this offering, we have dual listed our common stock on TASE.

As a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities of private or thinly traded public U.S. companies, cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. In addition, we are only allowed to borrow money such that our asset coverage, as defined in the 1940 Act, equals at least 200% (or 150% if, pursuant to the 1940 Act, certain requirements are met) after such borrowing, with certain limited exceptions. To maintain our RIC ~~status,~~tax treatment, we must meet specified source-of-income and asset diversification requirements. ToIn addition, to maintain our RIC tax treatment, ~~under Subchapter M for U.S. federal income tax purposes,~~ we must timely distribute at least 90% of our net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, for the taxable year.

Agreements and Plan of Mergers

On August 9, 2018, the Company entered into a definitive agreement to merge with Sierra Income Corporation (“Sierra”). Pursuant to the Agreement and Plan of Merger, dated as of August 9, 2018, by and between the Company and Sierra (the “MCC Merger Agreement”), the Company would, on the terms and subject to the conditions set forth in the MCC Merger Agreement, merge with and into Sierra, with Sierra as the surviving entity (the “Combined Company”) in the merger (the “MCC Merger”). Under the MCC Merger, each share of our common stock issued and outstanding immediately prior to the MCC Merger effective time, other than shares of our common stock held by the Company, Sierra or their respective wholly owned subsidiaries, would be converted into the right to receive 0.8050 shares of the Sierra’s common stock. Simultaneously, pursuant to the Agreement and Plan of Merger (the “MDLY Merger Agreement”), dated as of August 9, 2018, by and among Medley Management Inc. (“MDLY”), Sierra, and Sierra Management, Inc., a newly formed Delaware corporation and a wholly owned subsidiary of Sierra (“Merger Sub”), MDLY would, on the terms and subject to the conditions set forth in the MDLY Merger Agreement, merge with and into Merger Sub, with Merger Sub as the surviving company in the Merger (the “MDLY Merger” together with the MCC Merger, the “Mergers”), and MDLY’s existing asset management business would continue to operate as a wholly owned subsidiary of the Combined Company. In the MDLY Merger, each share of MDLY Class A common stock, issued and outstanding immediately prior to the MDLY Merger effective time, other than Dissenting Shares (as defined in the MDLY Merger Agreement) and shares of MDLY Class A common stock held by MDLY, Sierra or their respective wholly owned subsidiaries, would be converted into the right to receive (i) 0.3836 shares of Sierra’s common stock; plus (ii) cash in an amount equal to $3.44 per share. In addition, MDLY’s stockholders would have the right to receive certain dividends and/or other payments. If the Mergers are successfully consummated, Sierra’s common stock would be listed on the New York Stock Exchange (“NYSE”) under the symbol “SRA” and the TASE, with such listings expected to be effective as of the closing date of the Mergers. Upon completion of the Mergers, the investment portfolios of the Company and Sierra would be combined, Merger Sub, as a successor to MDLY, would be a wholly owned subsidiary of the Combined Company, and the Combined Company would be internally managed by MCC Advisors, its wholly controlled adviser subsidiary. Set forth below are certain risks relating to the Mergers.

Revenues

We generate revenue in the form of interest income on the debt that we hold and capital gains, if any, on warrants or other equity interests that we may acquire in portfolio companies. We invest our assets primarily in privately held companies with enterprise or asset values between $25 million and $250 million and focus on investment sizes of $10 million to $50 million. We believe that pursuing opportunities of this size offers several benefits including reduced competition, a larger investment opportunity set and the ability to minimize the impact of financial intermediaries. We expect our debt investments to bear interest at either a fixed or floating rate. Interest on debt will be payable generally either monthly or quarterly. In some cases our debt investments may provide for a portion of the interest to be PIK. To the extent interest is PIK, it will be payable through the increase of the principal amount of the obligation by the amount of interest due on the then-outstanding aggregate principal amount of such obligation. The principal amount of the debt and any accrued but unpaid interest will generally become due at the maturity date. In addition, we may generate revenue in the form of commitment, origination, structuring or diligence fees, fees for providing managerial assistance or investment management services and possibly consulting fees. Any such fees will be generated in connection with our investments and recognized as earned.

Expenses

Our primary operating expenses include the payment of management and incentive fees pursuant to the investment management agreement we have with MCC Advisors and overhead expenses, including our allocable portion of our administrator’s overhead under the administration agreement. Our management and incentive fees compensate MCC Advisors for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all other costs and expenses of our operations and transactions, including those relating to:

our organization and continued corporate existence;

calculating our NAV (including the cost and expenses of any independent valuation firms);

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

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

the costs of all offerings of common stock and other securities, if any;

the base management fee and any incentive fee;

distributions on our shares;

administration fees payable under our administration agreement;

the allocated costs incurred by MCC Advisors in providing managerial assistance to those portfolio companies that request it;

amounts payable to third parties relating to, or associated with, making investments;

transfer agent and custodial fees;

registration fees and listing fees;

U.S. federal, state and local taxes;

independent director fees and expenses;

costs of preparing and filing reports or other documents with the SEC or other regulators;

the costs of any reports, proxy statements or other notices to our stockholders, including printing costs;

our fidelity bond;

directors and officers/errors and omissions liability insurance, and any other insurance premiums;

indemnification payments;

direct costs and expenses of administration, including audit and legal costs; and

all other expenses reasonably incurred by us or MCC Advisors in connection with administering our business, such as the allocable portion of overhead under our administration agreement, including rent and other allocable portions of the cost of ~~certain of~~ our ~~officers~~Chief Financial Officer and Chief Compliance Officer and their respective staffs (including travel expenses).

Portfolio and Investment Activity

As of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017,~~2018, our portfolio had a fair market value of approximately ~~$835.9~~$612.5 million and ~~$837.0~~$655.4 million, respectively. The following table summarizes our portfolio and investment activity during the three months ended ~~December~~March 31, ~~2017~~2019 and ~~2016~~2018 (dollars in thousands):


	For the three months ended December 31						For the three months ended March 31						For the six months ended March 31
	2017			2016			2019			2018			2019			2018
Investments made in new portfolio companies	$	68,496		$	26,476		$	—		$	4,896		$	648		$	77,953
Investments made in existing portfolio companies	14,199			14,874			13,268			15,341			51,741			24,979
Aggregate amount in exits and repayments	(47,859		)	(40,118		)	(30,968		)	(79,537		)	(74,765		)	(127,396		)
Net investment activity	$	34,836		$	1,232		$	(17,700	)	$	(59,300	)	$	(22,376	)	$	(24,464	)

Portfolio Companies, at beginning of period	64			58			62			68			67			64
Number of new portfolio companies	6			4			—			2			2			8
Number of exited portfolio companies	(2		)	(2		)	(2		)	(6		)	(9		)	(8		)
Portfolio companies, at end of period	68			60			60			64			60			64

Number of investments in existing portfolio companies	10			10			13			10			19			14

The following table summarizes the amortized cost and the fair value of our average portfolio company investment, including the equity investment in the MCC Senior Loan Strategy JV I LLC (“MCC JV”), and largest portfolio company investment, excluding the equity investment in the MCC JV, as of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017~~2018 (dollars in thousands):


	December 31, 2017				September 30, 2017				March 31, 2019				September 30, 2018
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Average portfolio company investment	$	14,002	$	12,293	$	14,282	$	13,078	$	11,336	$	10,208	$	11,413	$	9,783
Largest portfolio company investment	51,609		51,609		52,137		50,667		31,469		31,469		31,469		31,469

The following table summarizes the amortized cost and the fair value of investments as of ~~December~~March 31, ~~2017~~2019 (dollars in thousands):


	Amortized Cost		Percentage		Fair Value		Percentage		Amortized Cost		Percentage		Fair Value		Percentage
Senior Secured First Lien Term Loans	$	594,793	62.5	%	$	532,308	63.7	%	$	424,455	62.4	%	$	352,820	57.6	%
Senior Secured Second Lien Term Loans	135,801		14.3		106,304		12.7		37,628		5.5		35,851		5.9
Senior Secured First Lien Notes	26,771		2.8		27,420		3.3		20,000		2.9		19,268		3.1
Unsecured Debt	22,728		2.4		—		—		2,662		0.4		2,662		0.4
MCC Senior Loan Strategy JV I LLC	66,762		7.0		67,406		8.0		78,575		11.6		75,410		12.3
Equity/Warrants	105,302		11.0		102,465		12.3		116,827		17.2		126,489		20.7
Total	$	952,157	100.0	%	$	835,903	100.0	%	$	680,147	100.0	%	$	612,500	100.0	%

The following table summarizes the amortized cost and the fair value of investments as of September 30, ~~2017~~2018 (dollars in thousands):


	Amortized Cost		Percentage		Fair Value		Percentage		Amortized Cost		Percentage		Fair Value		Percentage
Senior Secured First Lien Term Loans	$	559,461	61.2	%	$	537,163	64.2	%	$	475,801	62.2	%	$	395,015	60.3	%
Senior Secured Second Lien Term Loans	161,885		17.7		135,826		16.2		49,162		6.4		48,890		7.5
Senior Secured First Lien Notes	26,768		2.9		27,545		3.3		20,000		2.6		19,268		2.9
Unsecured Debt	22,728		2.5		—		—		26,108		3.4		3,381		0.5
MCC Senior Loan Strategy JV I LLC	56,087		6.1		56,138		6.7		78,575		10.3		78,371		11.9
Equity/Warrants	87,124		9.6		80,319		9.6		115,040		15.1		110,505		16.9
Total	$	914,053	100.0	%	$	836,991	100.0	%	$	764,686	100.0	%	$	655,430	100.0	%

As of ~~December~~March 31, ~~2017,~~2019, our income-bearing investment portfolio, which represented ~~78.9%~~80.7% of our total portfolio, had a weighted average yield based upon cost of our portfolio investments of approximately ~~10.6%~~9.5%, and ~~83.7%~~80.4% of our income-bearing investment portfolio bore interest based on floating rates, such as ~~LIBOR, and 16.3%~~the London Interbank Offering Rate (“LIBOR”), while 19.6% of our income-bearing investment portfolio bore interest at fixed rates. As of ~~December~~March 31, ~~2017,~~2019, the weighted average yield based upon cost of our total portfolio was approximately ~~7.6%~~5.9%.

The weighted average yield of our total portfolio does not represent the total return to our stockholders.

MCC Advisors regularly assesses the risk profile of each of our investments and rates each of them based on the following categories, which we refer to as MCC Advisors’ investment credit rating:



Credit Rating			Definition

1			Investments that are performing above expectations.
2			Investments that are performing within expectations, with risks that are neutral or favorable compared to risks at the time of origination.
			All new loans are rated ‘2’.
3			Investments that are performing below expectations and that require closer monitoring, but where no loss of interest, dividend or principal is expected.
			Companies rated ‘3’ may be out of compliance with financial covenants, however, loan payments are generally not past due.
4			Investments that are performing below expectations and for which risk has increased materially since origination.
			Some loss of interest or dividend is expected but no loss of principal.
			In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due (but generally not more than 180 days past due).
5			Investments that are performing substantially below expectations and whose risks have increased substantially since origination.
			Most or all of the debt covenants are out of compliance and payments are substantially delinquent.
			Some loss of principal is expected.

The following table shows the distribution of our investments on the 1 to 5 investment performance rating scale at fair value as of ~~December~~March 31, ~~2017~~2019 and September 30, ~~2017~~2018 (dollars in thousands):


	December 31, 2017				September 30, 2017				March 31, 2019				September 30, 2018
Investment Performance Rating	Fair Value		Percentage		Fair Value		Percentage		Fair Value		Percentage		Fair Value		Percentage
1	$	7,074	0.9	%	$	42,346	5.1	%	$	211,425	34.5	%	$	50,245	7.7	%
2	641,423		76.7		527,410		63.0		230,410		37.6		448,240		68.4
3	103,723		12.4		139,481		16.7		108,956		17.8		106,236		16.2
4	25,068		3.0		69,864		8.3		23,022		3.8		503		0.1
5	58,615		7.0		57,890		6.9		38,687		6.3		50,206		7.6
Total	$	835,903	100.0	%	$	836,991	100.0	%	$	612,500	100.0	%	$	655,430	100.0	%

Results of Operations

Operating results for the three and six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016~~2018 are as follows (dollars in thousands):


	For the three months ended December 31						For the three months ended March 31						For the six months ended March 31
	2017			2016			2019			2018			2019			2018
Total investment income	$	20,631		$	26,056		$	12,587		$	17,035		$	26,789		$	37,666
Total expenses, net	13,318			15,654			23,182			13,431			35,625			26,749
Net investment income before excise taxes	7,313			10,402			(10,595		)	3,604			(8,836		)	10,917
Excise tax expense	(134		)	(267		)	—			(24		)	—			(158		)
Net investment income	7,179			10,135			(10,595		)	3,580			(8,836		)	10,759
Net realized gains/(losses) from investments	(21		)	(6,298		)	(10,615		)	(23,331		)	(67,338		)	(23,352		)
Net unrealized appreciation/(depreciation) on investments	(39,192		)	2,489			(3,399		)	(8,060		)	41,610			(47,252		)
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments	90			—			—			190			—			280
Net increase in net assets resulting from operations	$	(31,944	)	$	6,326
Loss on extinguishment of debt							—			(1,158		)	(123		)	(1,158		)
Net increase/(decrease) in net assets resulting from operations							$	(24,609	)	$	(28,779	)	$	(34,687	)	$	(60,723	)

Investment Income

For the three months ended ~~December~~March 31, ~~2017,~~2019, investment income totaled ~~$20.6~~$12.6 million, of which ~~$18.8~~$12.3 million was attributable to portfolio interest and dividend income, and ~~$1.8~~$0.3 million to fee income. For the ~~three~~six months ended ~~December~~March 31, ~~2016,~~2019, investment income totaled ~~$26.1~~$26.8 million, of which ~~$24.7~~$26.0 million was attributable to portfolio interest and dividend income, and ~~$1.4~~$0.8 million to fee income.

For the three months ended March 31, 2018, investment income totaled $17.0 million, of which $16.5 million was attributable to portfolio interest and dividend income, and $0.5 million to fee income. For the six months ended March 31, 2018, investment income totaled $37.7 million, of which $35.4 million was attributable to portfolio interest and dividend income, and $2.3 million to fee income.

Operating Expenses

Operating expenses for the three and six months ended ~~December~~March 31, ~~2017~~2019 and ~~2016~~2018 are as follows (dollars in thousands):


	For the three months ended December 31					For the three months ended March 31					For the six months ended March 31
	2017		2016			2019		2018			2019		2018
Base management fees	$	4,068	$	4,515		$	3,084	$	3,776		$	6,270	$	7,844
Incentive fees	—		896			—		—			—		—
Interest and financing expenses	6,759		7,774			5,899		7,470			11,908		14,229
Professional fees						10,157		556			11,357		1,142
General and administrative						2,881		672			3,485		1,429
Administrator expenses	868		916			668		956			1,700		1,824
General and administrative	757		697
Professional fees	586		651
Directors fees	147		170			376		251			669		398
Insurance	133		99			117		130			236		263
Expenses before management and incentive fee waivers	13,318		15,718			23,182		13,811			35,625		27,129
Management fee waiver	—		(20		)	—		(380		)	—		(380		)
Incentive fee waiver	—		(44		)	—		—			—		—
Expenses, net of management and incentive fee waivers	$	13,318	$	15,654		$	23,182	$	13,431		$	35,625	$	26,749

For the three months ended ~~December~~March 31, ~~2017,~~2019, total operating expenses before management and incentive fee waivers ~~decreased~~increased by ~~$2.4~~$9.4 million, or ~~15.3%~~67.8%, compared to the three months ended ~~December~~March 31, ~~2016.~~2018. For the six months ended March 31, 2019, total operating expenses before management and incentive fee waivers increased by $8.5 million, or 31.3%, compared to the six months ended March 31, 2018.

Interest and Financing Expenses

Interest and financing expenses for the three months ended ~~December~~March 31, ~~2017~~2019 decreased by ~~$1.0~~$1.6 million, or ~~13.1%~~21.0%, compared to the three months ended ~~December~~March 31, ~~2016.~~2018. The decrease in interest and financing expenses was primarily due to the $102.0 million voluntary repayment of the ~~7.125% unsecured notes~~Senior Secured Term Loan Credit Facility (the ~~“2019 Notes”~~“Term Loan Facility”) ~~in February 2017,~~, the ~~reduction~~voluntary satisfaction and termination of the Senior Secured Revolving Credit Facility (the “Revolving Credit Facility”) ~~commitment to $200.0 million from $343.5~~, the redemption of $13.0 million and the reduction of the Senior Secured Term Loan Credit Facility (the "Term Loan Facility" and, collectively with the Revolving Credit Facility, the "Facilities") commitment to $102.0 million from $174.0 million, partially offset by an increase in LIBOR rates and the issuance of an additional $39.4$12.0 million of 6.125% unsecured notes that mature on March 30, 2023 (the “2023 Notes”) on March 12, 2018 and December 31, 2018, respectively, and the $15.0 million repayment of the SBA-guaranteed debentures (the “SBA Debentures”) on September 1, 2018, partially offset by the issuance of the 2024 Notes.

Interest and financing expenses for the six months ended March 31, 2019 decreased by $2.3 million, or 16.3%, compared to the six months ended March 31, 2018. The decrease in interest and financing expenses was primarily due to the $102.0 million voluntary repayment of the Term Loan Facility, the voluntary satisfaction and termination of the Revolving Credit Facility, the redemption of $13.0 million and $12.0 million of the 2023 Notes~~”).~~ on March 12, 2018 and December 31, 2018, respectively, and the $15.0 million repayment of the SBA Debentures on September 1, 2018, partially offset by the issuance of the 2024 Notes.

Base Management Fees and Incentive Fees

Base management fees for the three months ended ~~December~~March 31, ~~2017~~2019 decreased by ~~$0.4~~$0.7 million, or ~~9.9%~~18.3%, compared to the three months ended ~~December~~March 31, ~~2016~~2018 due to the decline in the portfolio ~~during~~in the period. ~~Incentives~~The Company did not incur incentive fees for the three months ended ~~December~~March 31, ~~2017~~2019 and 2018.

Base management fees for the six months ended March 31, 2019 decreased by ~~$0.9~~$1.6 million, or ~~100.0%~~20.1%, compared to the ~~three~~six months ended ~~December~~March 31, ~~2016~~2018 due to the ~~decrease~~decline in ~~pre-incentive fee net investment income.~~the portfolio in the period. The Company did not incur incentive fees for the six months ended March 31, 2019 and 2018.

Professional Fees and Other General and Administrative Expenses

Professional fees and general and administrative expenses for the three months ended ~~December~~March 31, ~~2017 decreased~~2019 increased by ~~$42,773,~~$11.6 million, or ~~1.7%~~453.4%, compared to the three months ended ~~December~~March 31, ~~2016~~2018 primarily due to ~~an decrease in directors expenses, audit expenses, administrator expenses, and valuation expenses, offset by~~ an increase in legal expenses, directors expenses, proxy soliciting expenses, and administrative expenses in connection with the MCC Merger, offset by a decrease in valuation expenses, general administrative expenses, and insurance ~~expenses,~~expenses.

Professional fees and general and administrative expenses for the six months ended March 31, 2019 increased by $12.4 million, or 245.1%, compared to the six months ended March 31, 2018 primarily due to an increase in legal expenses, directors expenses, proxy soliciting expenses, and administrative expenses in connection with the MCC Merger, offset by a decrease in valuation expenses, general administrative expenses, and insurance expenses.

Net Realized Gains/Losses from Investments

We measure realized gains or losses by the difference between the net proceeds from the disposition and the amortized cost basis of an investment, without regard to unrealized gains or losses previously recognized.

During the three months ended December 31, 2017, we recognized $21,476 of realized loss on our portfolio investments. The realized loss was primarily due to the partial sale of one of our investments, offset by a realized gain from liquidation proceeds received on a realized investment.

During the three months ended ~~December~~March 31, ~~2016,~~2019, we recognized ~~$6.3~~$10.6 million of realized losses on our portfolio investments. The realized losses were primarily due to the non-cash restructuring of one of our investments. During the six months ended March 31, 2019, we recognized $67.3 million of realized losses on our portfolio investments. The realized losses were primarily due to the non-cash restructuring of one of our investments as well as the write off of certain investments in two of our portfolio companies.

During the three and six months ended March 31, 2018, we recognized $23.3 million and $23.4 million of realized loss on our portfolio ~~investments. The realized loss was~~investments, respectively, primarily due to the non-cash restructuring ~~transactions~~transaction of ~~two~~certain investments.

Net Realized Loss on Extinguishment of Debt

In the event that we modify or extinguish our debt prior to maturity, we account for it in accordance with ASC 470-50, Modifications and Extinguishments, in which we measure the difference between the reacquisition price of the debt and the net carrying amount of the debt, which includes any unamortized debt issuance costs.

During the three months ended March 31, 2019, the Company did not recognize a loss on extinguishment of debt.

During the six months ended March 31, 2019, the Company recognized a net loss on extinguishment of debt of $0.1 million, which is comprised of $0.2 million loss on extinguishment of debt from the $13.0 million partial redemption of the 2023 Notes, offset by a $0.1 million gain on extinguishment of debt from the repurchase and retirement of $1.1 million of the 2024 Notes.

During the three and six months ended March 31, 2018 the Company recognized a $1.2 million loss on extinguishment of debt from the $102.0 million repayment of the Term Loan Facility as well as the redemption of $13.0 million of the 2023 Notes.

Net Unrealized Appreciation/Depreciation on Investments

Net change in unrealized appreciation or depreciation on investments reflects the net change in the fair value of our investment portfolio.

For the three months ended ~~December~~March 31, ~~2017,~~2019, we had ~~$39.2~~$3.4 million of net unrealized depreciation of investments. The net unrealized depreciation comprised of $12.3 million of net unrealized depreciation on investments offset by $8.9 million of net unrealized appreciation that resulted from the reversal of previously recorded unrealized depreciation on investments that were realized or written-off during the period.

For the six months ended March 31, 2019, we had $41.6 million of net unrealized appreciation of investments. The net unrealized appreciation comprised of $19.6 million of net unrealized depreciation on investments offset by $61.2 million of net unrealized appreciation that resulted from the reversal of previously recorded unrealized depreciation on investments that were realized or written-off during the period.

For the three months ended ~~December~~March 31, ~~2016,~~2018, we had ~~$2.5~~$8.1 million of net unrealized depreciation of investments. The net unrealized depreciation comprised of $31.3 million of net unrealized depreciation on investments offset by $23.2 million of net unrealized appreciation that resulted from the reversal of previously recorded unrealized depreciation on ~~investments.~~investments that were realized or written-off during the period.

For the six months ended March 31, 2018, we had $47.3 million of net unrealized depreciation of investments. The net unrealized depreciation comprised of $65.6 million of net unrealized depreciation on investments offset by $18.3 million of net unrealized appreciation that resulted from the reversal of previously recorded unrealized depreciation on investments that were realized or written-off during the period.

Provision for Deferred Taxes on Unrealized ~~Appreciation~~Depreciation on Investments

Certain consolidated subsidiaries of ours are subject to U.S. federal and state income taxes. These taxable subsidiaries are not consolidated with the Company for income tax purposes, but are consolidated for GAAP purposes, and may generate income tax liabilities or assets from temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries. For the three and six months ended ~~December~~March 31, ~~2017,~~2019, the Company did not record a change in provision for deferred taxes on the unrealized (appreciation)/depreciation on investments. For the three and six months ended March 31, 2018, the change in provision for deferred taxes on the unrealized depreciation on investments was ~~$0.1 million. For the three months ended December 31, 2016, there was no change in provision for deferred taxes on the unrealized (appreciation)/depreciation on investments.~~$0.2 million and $0.3 million, respectively.

Changes in Net Assets from Operations

For the three months ended ~~December~~March 31, ~~2017,~~2019, we recorded a net decrease in net assets resulting from operations of ~~$31.9~~$24.6 million compared to a net ~~increase~~decrease in net assets resulting from operations of ~~$6.3~~$28.8 million for the three months ended ~~December~~March 31, ~~2016~~2018 as a result of the factors discussed above. Based on 54,474,211 weighted average common shares outstanding for the three months ended ~~December~~March 31, ~~2017~~2019 and ~~2016,~~2018, our per share net decrease in net assets resulting from operations was ~~$0.59~~$0.45 and $0.53 for ~~the~~ three months ended ~~December~~March 31, ~~2017 compared to~~2019 and 2018, respectively.

For the six months ended March 31, 2019, we recorded a ~~per share~~ net ~~increase~~decrease in net assets resulting from operations of ~~$0.12~~$34.7 million compared to a net decrease in net assets resulting from operations of $60.7 million for the ~~three~~six months ended ~~December~~March 31, ~~2016.~~2018 as a result of the factors discussed above. Based on 54,474,211 weighted average common shares outstanding for the six months ended March 31, 2019 and 2018, our per share net decrease in net assets resulting from operations was $0.64 and $1.11 for six months ended March 31, 2019 and 2018, respectively.

Financial Condition, Liquidity and Capital Resources

As a RIC, we distribute substantially all of our net income to our stockholders and have an ongoing need to raise additional capital for investment purposes. To fund growth, we have a number of alternatives available to increase capital, including raising equity, increasing debt, and funding from operational cash flow.

Our liquidity and capital resources have been generated primarily from the net proceeds of public offerings of common stock, advances from the ~~Facilities~~Revolving Credit Facility and net proceeds from the issuance of notes as well as cash flows from operations.

~~As of December 31, 2017, we had $50.0 million in cash and cash equivalents.~~ In the future, we may generate cash from future offerings of securities, future borrowings and cash flows from operations, including interest earned from the temporary investment of cash in U.S. government securities and other high-quality debt investments that mature in one year or less. Our primary use of funds is investments in our targeted asset classes, cash distributions to our stockholders, and other general corporate purposes.

As of March 31, 2019, we had $73.4 million in cash and cash equivalents, of which $53.3 million was held by Medley SBIC LP (“SBIC LP”). In connection with the wind-down of SBIC LP, SBIC LP agreed to and made a repayment of $50.0 million of outstanding SBA Debentures on April 3, 2019 using available cash currently at SBIC LP. See “- SBA Debentures” below. As a result of this repayment to the SBA, as of the date of this quarterly report on Form 10-Q, we had $19.8 million in cash and cash equivalents, of which $4.0 was held by SBIC LP.

In order to continue to qualify as a RIC under the Code, we intend to distribute to our stockholders substantially all of our taxable income, but we may also elect to periodically spill over certain excess undistributed taxable income from one tax year into the next tax year. In addition, as a BDC, for each taxable year we generally are required to meet a coverage ratio of total assets to total senior securities, which include borrowings and any preferred stock we may issue in the future, of at least 200% (or 150% if, pursuant to the 1940 Act, certain requirements are met). This requirement limits the amount that we may borrow.

Credit Facilities

Term Loan Facility

The Company ~~has~~had a Term Loan Facility which was scheduled to mature on July 28, 2020.

Revolving Credit Facility

The Company had a Revolving Credit Facility with ING Capital LLC, as ~~administrative agent,~~Administrative Agent, in order to borrow funds to make additional investments.

The ~~pricing in the case of the Term Loan Facility for LIBOR loans is LIBOR (with no minimum) plus 3.00%. The pricing on the~~ Revolving Credit Facility ~~is LIBOR (with no minimum) plus 2.75%. The pricing on the Facilities will decrease by an additional 25 basis points upon receiving an investment grade rating from Standard & Poor’s.~~

On February 14, 2017, the Company elected to reduce the total commitment of the Revolving Credit Facility to $200.0 million from $343.5 million. The reduction was accounted for as a debt modification to a ~~line-of-credit~~line-of credit or revolving-debt arrangement in accordance with ASC 470-50, Modifications and Extinguishments, which attributed to an acceleration of debt issuance costs in the amount of $1.3 million and recorded on the Consolidated Statements of Operations as a component of interest and financing expenses.

On February 12, 2018, the Company elected to reduce the total commitment of the Revolving Credit Facility to $150.0 million from $200.0 million. The reduction was accounted for as a debt modification to a line-of credit or revolving-debt arrangement in accordance with ASC 470-50, Modifications and Extinguishments, which attributed to an acceleration of debt issuance costs in the amount of $0.4 million and recorded on the Consolidated Statements of Operations as a component of interest and financing expenses.

On September ~~1, 2017,~~28, 2018, the Company ~~reduced~~voluntarily satisfied and terminated the ~~Term Loan~~commitments under the Revolving Credit Facility ~~commitment to $102.0 million from $174.0 million.~~in accordance with its terms. The ~~reduction~~termination was accounted for as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which ~~attributed to~~resulted in a realized loss of ~~$0.6~~$1.0 million and was recorded on the Consolidated Statements of Operations as a loss on extinguishment of debt.

As of December 31, 2017, total commitments under the Facilities are $302.0 million, comprised of $200.0 million committed to the Revolving Credit Facility and $102.0 million funded under the Term Loan Facility.

Unsecured Notes

~~2019 Notes~~

On March 21, 2012, the Company issued $40.0 million in aggregate principal amount of the 2019 Notes. The 2019 Notes bore interest at a rate of 7.125% per year, and were payable quarterly on March 30, June 30, September 30 and December 30 of each year, beginning June 30, 2012. The 2019 Notes were listed on the NYSE and traded thereon under the trading symbol “MCQ”. On February 22, 2017, the 2019 Notes were redeemed at par plus accrued and unpaid interest. The redemption was accounted for as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which attributed to a realized loss of $0.5 million.

2021 Notes

2023 Notes

On March 18, 2013, the Company issued $60.0 million in aggregate principal amount of 2023 Notes. As of March 30, 2016, the 2023 Notes may be redeemed in whole or in part at any time or from time to time at the Company's option. On March 26, 2013, the Company closed an additional $3.5 million in aggregate principal amount of 2023 Notes, pursuant to the partial exercise of the underwriters’ option to purchase additional notes. The 2023 Notes bear interest at a rate of 6.125% per year, payable quarterly on March 30, June 30, September 30 and December 30 of each year, beginning June 30, 2013. The 2023 Notes are listed on the NYSE and trade thereon under the trading symbol “MCV”.

On December 12, 2016, the Company entered into an ~~ATM~~“At-The-Market” (“ATM”) debt distribution agreement with FBR Capital Markets & Co., through which the Company could offer for sale, from time to time, up to $40.0 million in aggregate principal amount of the 2023 Notes. The Company sold 1,573,872 of the 2023 Notes at an average price of $25.03 per note, and raised $38.6 million in net proceeds, ~~since inception of~~through the ATM debt distribution agreement.

On March 10, 2018, the Company redeemed $13.0 million in aggregate principal amount of the 2023 Notes. The redemption was accounted for as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which resulted in a realized loss of $0.4 million and was recorded on the Consolidated Statements of Operations as a loss on extinguishment of debt.

2024 Notes

On January 26, 2018, the Company priced a debt offering in Israel of $121.3 million in aggregate principal amount of the 2024 Notes that mature on February 27, 2024 and the principal will be payable in four annual installments, of which 25% will be payable on each February 27 for the years 2021 through 2024. As of March 27, 2018, the 2024 Notes may be redeemed in whole or in part at anytime or from time to time at the Company's option. The 2024 Notes bear interest at a rate of 5.55% per year, payable semi-annually on February 27 and August 27 of each year, beginning August 27, 2018.

time for compliance as described above or an adequate waiver or amendment, then an event of default on the 2024 Notes will occur on the date that the Company publishes its annual report on Form 10-K for the fiscal year ending September 30, 2019, which would be no later than December 16, 2019.

SBA Debentures

On March 26, 2013, our wholly-owned subsidiary, ~~Medley~~ SBIC LP ~~(“SBIC LP”)~~ received a Small Business Investment Company (“SBIC”) license from the Small Business Administration (“SBA”) under Section 301(c) of the Small Business Investment Company Act of 1958, as amended.

The SBIC license allows the SBIC LP to obtain leverage by issuing ~~SBA-guaranteed debentures ("~~SBA ~~Debentures"),~~Debentures, subject to the issuance of a capital commitment by the SBA and other customary procedures. SBA Debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten year maturity. The principal amount of SBA Debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA Debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with 10-year maturities. The SBA, as a creditor, will have a superior claim to the SBIC LP’s assets over our stockholders in the event we liquidate the SBIC LP or the SBA exercises its remedies under the SBA Debentures issued by the SBIC LP upon an event of default.

SBA regulations currently limit the amount that the SBIC LP may borrow to a maximum of $150.0 million when it has at least $75.0 million in regulatory capital, receives a capital commitment from the SBA and has been through an examination by the SBA subsequent to licensing. In June 2018, the U.S. Senate passed the Small Business Investment Opportunity Act, which the President signed into law, that amended the Small Business Investment Act of 1958 by increasing the individual leverage limit from $150 million to $175 million, subject to SBA approvals.

On November 16, 2012, we obtained an exemptive order from the SEC to permit us to exclude the debt of the SBIC LP guaranteed by the SBA from our 200% asset coverage ~~test~~requirement under the 1940 Act. The exemptive order provides us with increased flexibility under the 200% asset coverage ~~test~~requirement by permitting SBIC LP to borrow up to $150.0 million more than it would otherwise be able to absent the receipt of this exemptive order.

On May 10, 2019, SBIC LP made the final repayment of the remaining $35.0 million of outstanding SBA Debentures using proceeds from the sale of certain assets.

As of ~~December~~March 31, ~~2017,~~2019, SBIC LP had $75.0 million in regulatory capital and had ~~$150.0~~$135.0 million SBA Debentures ~~outstanding.~~outstanding that mature between

March 2024 and September 2025.

Contractual Obligations and Off-Balance Sheet Arrangements


	December 31, 2017		September 30, 2017		March 31, 2019		March 31, 2018
Path Medical, LLC - Delayed Draw Term Loan B	$	7,125	$	—
SMART Financial Operations, LLC - Delayed Draw Term Loan	4,725		4,725
Barry's Bootcamp Holdings, LLC - Revolver	4,400		4,400
Accupac, Inc. - Delayed Draw Term Loan	2,612		2,612		$	2,612	$	2,612
RMS Holding Company, LLC - Revolver	2,327		—
Alpine SG, LLC - Delayed Draw Term Loan	1,857		—
SFP Holding, Inc. - Delayed Draw Term Loan	1,778		1,778
Manna Pro Products, LLC - Delayed Draw Term Loan	1,600		—
Dynamic Energy Services International LLC - Revolver					1,892		—
DataOnline Corp. - Revolver					1,890		1,890
Barry's Bootcamp Holdings, LLC - Delayed Draw Term Loan	1,271		1,271		1,271		1,271
AAR Intermediate Holdings, LLC - Revolver	1,258		1,797
1888 Industrial Services, LLC - Revolver					1,258		719
Trans-Fast Remittance LLC - Delayed Draw Term Loan	1,057		1,057		1,057		1,057
Alpine SG, LLC - Revolver	1,000		—		1,000		1,000
Black Angus Steakhouses, LLC - Delayed Draw Term Loan	893		893		893		893
Impact Sales, LLC - Delayed Draw Term Loan	755		755
Redwood Services Group, LLC - Revolver					875		1,750
RMS Holding Company, LLC - Revolver					691		2,327
Barry's Bootcamp Holdings, LLC - Revolver					660		2,200
Manna Pro Products, LLC - Delayed Draw Term Loan					429		429
Black Angus Steakhouses, LLC - Revolver	535		516		313		625
Brook & Whittle Holdings Corp. - Delayed Draw Term Loan	310		—
Path Medical, LLC - Delayed Draw Term Loan C					295		—
Access Media Holdings, LLC - Series AAA Preferred Equity					101		173
SFP Holding, Inc. - Delayed Draw Term Loan					—		2,765
Central States Dermatology Services, LLC - Delayed Draw Term Loan	200		254		—		137
SavATree, LLC - Delayed Draw Term Loan	167		167		—		123
Access Media Holdings, LLC - Series AAA Preferred Equity	107		277
Engineered Machinery Holdings, Inc. - Delayed Draw Term Loan	29		159
CP OPCO, LLC - Revolver	—		1,973
Brantley Transportation LLC - Delayed Draw Term Loan	—		788
NVTN LLC - Delayed Draw Term Loan	—		250
Impact Group, LLC - Delayed Draw Term Loan					—		8,567
Redwood Services Group, LLC - Delayed Draw Term Loan					—		4,839
SMART Financial Operations, LLC - Delayed Draw Term Loan					—		2,400
Brook & Whittle Holding Corp. - Delayed Draw Term Loan					—		310
Total	$	34,006	$	23,672	$	15,237	$	36,087

We have certain contracts under which we have material future commitments. We have entered into an investment management agreement with MCC Advisors in accordance with the 1940 Act. The investment management agreement became effective upon the pricing of our initial public offering. Under the investment management agreement, MCC Advisors has agreed to provide us with investment advisory and management services. For these services, we have agreed to pay a base management fee equal to a percentage of our gross assets and an incentive fee based on our performance.

We have also entered into an administration agreement with MCC Advisors as our administrator. The administration agreement became effective upon the pricing of our initial public offering. Under the administration agreement, MCC Advisors has agreed to furnish us with office facilities and equipment, provide us clerical, bookkeeping and record keeping services at such facilities and provide us with other administrative services necessary to conduct our day-to-day operations. MCC Advisors will also provide on our behalf significant managerial assistance to those portfolio companies to which we are required to provide such assistance.

The following table shows our payment obligations for repayment of debt and other contractual obligations at ~~December~~March 31, ~~2017~~2019 (dollars in thousands):


	Payment Due by Period										Payment Due by Period
	Total		Less than 1 year		1 - 3 years		3 - 5 years		More than 5 years		Total		Less than 1 year		1 - 3 years		3 - 5 years		More than 5 years
Revolving Facility	$	47,000	$	—	$	47,000	$	—	$	—
Term Loan Facility	102,000		—		102,000		—		—
2021 Notes	74,013		—		—		74,013		—		74,013		—		74,013		—		—
2023 Notes	102,847		—		—		—		102,847		77,847		—		—		77,847		—
2024 Notes											120,156		—		60,078		60,078		—
SBA Debenture	150,000		—		—		—		150,000		135,000		—		—		29,000		106,000
Total contractual obligations	$	475,860	$	—	$	149,000	$	74,013	$	252,847	$	407,016	$	—	$	134,091	$	166,925	$	106,000

If any of the contractual obligations discussed above are terminated, our costs under any new agreements that we enter into may increase. In addition, we would likely incur significant time and expense in locating alternative parties to provide the services we expect to receive under our investment management agreement and our administration agreement. Any new investment management agreement would also be subject to approval by our stockholders.

On March 27, 2015, the Company and Great American Life Insurance Company (“GALIC”) entered into a limited liability company operating agreement to co-manage MCC Senior Loan Strategy JV I LLC (“MCC JV”). The Company and GALIC have committed to provide $100 million of equity to MCC JV, with the Company providing $87.5 million and GALIC providing $12.5 million. MCC JV commenced operations on July 15, 2015. On August 4, 2015, MCC JV entered into a senior secured revolving credit facility (the “JV Facility”) led by Credit Suisse, AG with commitments of $100 million. On March 30, 2017, the Company amended the JV Facility previously administered by CS and facilitated the assignment of all rights and obligations of CS under the JV Facility to Deutsche Bank AG, New York Branch, (“DB”) and increased the total loan commitments to $200 million. As of ~~December~~March 31, ~~2017,~~2019, MCC JV has drawn approximately ~~$153.4~~$179.3 million on the JV Facility. As of ~~December~~March 31, ~~2017,~~2019, MCC JV had total investments at fair value of ~~$210.4~~$254.8 million. As of ~~December~~March 31, ~~2017,~~2019, MCC JV’s portfolio was comprised of senior secured first lien term loans to 5060 different borrowers. As of ~~December~~March 31, ~~2017, certain~~2019, MCC JV did not have any investments ~~in one portfolio company were~~ on non-accrual status.

The Company has determined that MCC JV is an investment company under ASC 946, however in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a wholly owned investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company does not consolidate its interest in MCC JV.

Distributions

We have elected, and ~~qualified~~intend to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code. As a RIC, in any taxable year with respect to which we timely distribute at least 90 percent of the sum of our (i) investment company taxable income (which is generally our net ordinary income plus the excess of realized net short-term capital gains over realized net long-term capital losses) determined without regard to the deduction for dividends paid and (ii) net tax exempt interest income (which is the excess of our gross tax exempt interest income over certain disallowed deductions), we (but not our stockholders) generally will not be subject to U.S. federal income tax on investment company taxable income and net capital gains that we distribute to our stockholders. We intend to distribute annually all or substantially all of such income, but we may also elect to periodically spill over certain excess undistributed taxable income from one tax year to the next tax year. To the extent that we retain our net capital gains or any investment company taxable income, we will be subject to U.S. federal income tax. We may choose to retain our net capital gains or any investment company taxable income, and pay the associated federal corporate income tax, including the federal excise tax described below.

Amounts not distributed on a timely basis in accordance with a calendar year distribution requirement are subject to a nondeductible 4% U.S. federal excise tax payable by us. To avoid this tax, we must distribute (or be deemed to have distributed) during each calendar year an amount equal to the sum of:


1)	at least 98.0 percent of our ordinary income (not taking into account any capital gains or losses) for the calendar year;


2)	at least 98.2 percent of the amount by which our capital gains exceed our capital losses (adjusted for certain ordinary losses) for a one-year period ending on October 31st of the calendar year; and


3)	income realized, but not distributed, in preceding years and on which we did not pay federal income tax.

While we intend to distribute any income and capital gains in the manner necessary to minimize imposition of the 4% U.S. federal excise tax, sufficient amounts of our taxable income and capital gains may not be distributed to avoid entirely the imposition of the tax. In that event, we will be liable for the tax only on the amount by which we do not meet the foregoing distribution requirement.

We intend to pay quarterly dividends to our stockholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to pay a specified level of dividends or year-to-year increases in dividends. In addition, the inability to satisfy the asset coverage ~~test~~requirement applicable to us as a BDC could limit our ability to pay dividends. All dividends will be paid at the discretion of our board of directors and will depend on our earnings, our financial condition, maintenance of our RIC ~~status,~~tax treatment, compliance with applicable BDC regulations and such other factors as our board of directors may deem relevant from time to time. We cannot assure you that we will pay dividends to our stockholders in the future.

To the extent our taxable earnings fall below the total amount of our distributions for a taxable year, a portion of those distributions may be deemed a return of capital to our stockholders for U.S. federal income tax purposes. Stockholders should read any written disclosure accompanying a distribution carefully and should not assume that the source of any distribution is our ordinary income or gains.

our common stock rather than receiving cash dividends. Stockholders who receive distributions in the form of shares of common stock will be subject to the same federal, state and local tax consequences as if they received cash distributions.

The following table summarizes the dividend distributions during the ~~three~~six months ended ~~December~~March 31, ~~2017:~~ 2019:

Date Declared

Record Date

Payment Date

Amount Per Share

Record Date

Payment Date

Amount Per Share

10/31/2017

11/22/2017

12/22/2017

0.16

11/16/2018

12/5/2018

12/20/2018

0.10

2/10/2019

2/22/2019

3/12/2019

0.05

0.16

0.15

Stock Repurchase Program

Related Party Transactions

Concurrent with the pricing of our IPO, we entered into a number of business relationships with affiliated or related parties, including the following:

MCC Advisors provides us with the office facilities and administrative services necessary to conduct day-to-day operations pursuant to our administration agreement. We reimburse MCC Advisors for the allocable portion (subject to the review and approval of our board of directors) of overhead and other expenses incurred by it 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 their respective staffs.

We have entered into a license agreement with Medley Capital LLC, pursuant to which Medley Capital LLC has granted us a non-exclusive, royalty-free license to use the name “Medley.”

Certain affiliates of MCC Advisors, Medley Capital LLC, their respective affiliates and some of their employees purchased in the IPO an aggregate of 833,333 shares of common stock at the IPO price per share of $12.00. We received the full proceeds from the sale of these shares, and no underwriting discounts or commissions were paid in respect of these shares.

On August 9, 2018, the Company entered into the MCC Merger Agreement pursuant to which the Company would, on the terms and subject to the conditions set forth in the MCC Merger Agreement, merge with and into Sierra, with Sierra as the surviving company in the MCC Merger Agreement. Under the MCC Merger, each share of our common stock issued and outstanding immediately prior to the MCC Merger effective time, other than shares of our common stock held by the Company, Sierra or their respective wholly owned subsidiaries, would be converted into the right to receive 0.8050 shares of the Sierra’s common stock. In addition, pursuant to the MDLY Merger Agreement, MDLY would, on the terms and subject to the conditions set forth in the MDLY Merger Agreement, merge with and into Merger Sub, with Merger Sub as the surviving company in the MDLY Merger Agreement. In the MDLY Merger, each share of MDLY Class A common stock, issued and outstanding immediately prior to the MDLY Merger effective time, other than Dissenting Shares (as defined in the MDLY Merger Agreement) and shares of MDLY Class A common stock held by MDLY, Sierra or their respective wholly owned subsidiaries, would be converted into the right to receive (i) 0.3836 shares of Sierra’s common stock; plus (ii) cash in an amount equal to $3.44 per share. In addition, MDLY’s stockholders would have the right to receive certain dividends and/or other payments. The Mergers would occur simultaneously and, as a result of the foregoing, the investment management function relating to the operation of the Sierra, as the surviving company in the Mergers, would be internalized.

create a settlement fund, consisting of $17 million in cash and $30 million of Sierra stock, with the number of shares of Sierra stock to be calculated using the pro forma NAV reported in the future proxy supplement describing the amendments to the MCC Merger Agreement, which will be distributed to eligible members of the Class (as defined in the Settlement Term Sheet). In connection with the Settlement Term Sheet, MDLY has executed an acknowledgement and agreement to take certain actions, including consenting to certain amendments to the Merger Agreements, in furtherance of the transactions contemplated thereby.

Under the Settlement Term Sheet, the parties have agreed to cooperate to reduce the agreements reflected therein to the Settlement Stipulation, and to obtain approval of Court of Chancery of the State of Delaware as soon as reasonably practicable thereafter. The Settlement Stipulation will provide for mutual releases between and among FrontFour and the Class, on the one hand, and the Medley Parties, on the other hand, of all claims that were or could have been asserted in the Class Action. The Medley Parties will also release all claims arising out of or relating to the prosecution and settlement of the Class Action and all claims that were or could have been asserted (other than claims against NexPoint Advisors, L.P. and its affiliates) in the Federal Action, and FrontFour and the Class will release all claims arising out of or relating to the prosecution and settlement of the Federal Action.

MCC Advisors and its affiliates may in the future manage other accounts that have investment mandates that are similar, in whole and in part, with ours. MCC Advisors and its affiliates may determine that an investment is appropriate for us and for one or more of those other accounts. In such event, depending on the availability of such investment and other appropriate factors, and pursuant to MCC Advisors’ allocation policy, MCC Advisors or its affiliates may determine that we should invest side-by-side with one or more other accounts. We will not make any investments if they are not permitted by applicable law and interpretive positions of the SEC and its staff, the exemptive order granted by the SEC, or if they are inconsistent with MCC Advisors’ allocation procedures. Further, any investments made by related parties will be made in accordance with MCC Advisors’ related party transaction procedures.

~~The~~On November 25, 2013, the Company obtained an exemptive order from the SEC ~~on November 25, 2013~~that permits us to participate in negotiated co-investment transactions with certain affiliates, each of whose investment adviser is Medley, LLC or an investment adviser controlled by Medley, LLC in a manner consistent with our investment objective, strategies and restrictions, as well as regulatory requirements and other pertinent factors (the “Prior Exemptive Order”). On March 29, 2017, the Company, MCC Advisors and certain other affiliated funds and investment advisers received an exemptive order (the “Exemptive Order”) that supersedes the Prior Exemptive Order and allows affiliated registered investment companies to participate in co-investment transactions with us that would otherwise have been prohibited under Section 17(d) and 57(a)(4) of the 1940 Act and Rule 17d-1 thereunder. On October 4, 2017, the Company, MCC Advisors and certain of our affiliates received an exemptive order that supersedes the Exemptive Order (the ~~“New~~“Current Exemptive Order”) and allows, in addition to the entities already covered by the Exemptive Order, Medley LLC and its subsidiary, Medley Capital LLC, to the extent they hold financial assets in a principal capacity, and any direct or indirect, wholly- or majority-owned subsidiary of Medley LLC that is formed in the future, to participate in co-investment transactions with us that would otherwise be prohibited by either or both of Sections 17(d) and 57(a)(4) of the 1940 Act. If the Mergers are successfully consummated, Sierra and certain of its affiliates will not be able to rely on the Current Exemptive Order. In this regard, on November 19, 2018, Sierra and certain of its affiliates submitted an exemptive application to the SEC for an exemptive order that would supersede the Current Exemptive Order (the “Superseding Exemptive Order”) and would permit Sierra to participate in negotiated co- investment transactions with certain affiliates that would otherwise be prohibited by either or both of Sections 17(d) and 57(a)(4) of the 1940 Act. There can be no assurance if and when Sierra will receive the Superseding Exemptive Order. The terms of the ~~New~~Superseding Exemptive Order, ~~are otherwise~~if received, would be substantially similar to the Current Exemptive Order. Co-investment under the Superseding Exemptive Order is subject to certain conditions therein, including the condition that, in the case of each co-investment transaction, ~~our~~the board of directors determines that it would to be in ~~our~~Sierra’s best interest to participate in the transaction. The Current Exemptive Order will remain in effect unless and until the Mergers are completed and the Superseding Exemptive Order is granted by the SEC. However, neither we nor the affiliated funds are obligated to invest or co-invest when investment opportunities are referred to us or them.

In addition, we have adopted a formal code of ethics that governs the conduct of our and MCC Advisors’ officers, directors and employees. Our officers and directors also remain subject to the duties imposed by both the 1940 Act and the Delaware General Corporation Law.

Investment Management Agreement

Under the terms of our investment management agreement, MCC Advisors:

determines the composition of our portfolio, the nature and timing of the changes to our portfolio and the manner of implementing such changes;

identifies, evaluates and negotiates the structure of the investments we make (including performing due diligence on our prospective portfolio companies); and

executes, closes, monitors and administers the investments we make, including the exercise of any voting or consent rights.

MCC Advisors’ services under the investment management agreement are not exclusive, and it is free to furnish similar services to other entities so long as its services to us are not impaired.

Pursuant to our investment management agreement, we pay MCC Advisors a fee for investment advisory and management services consisting of a base management fee and a two-part incentive fee.

The following discussion of our base management fee and two-part incentive fee reflects the terms of the fee waiver agreement executed by MCC Advisors on February 8, 2016 (the “Fee Waiver Agreement”). The terms of the Fee Waiver Agreement are effective as of January 1, 2016, and are a permanent reduction in the base management fee and incentive fee on net investment income payable to MCC Advisors for the investment advisory and management services it provides under the investment management agreement. The Fee Waiver Agreement does not change the second component of the incentive fee, which is the incentive fee on capital gains.

Base Management Fee

Incentive Fee

The incentive fee has two components, as follows:

Incentive Fee Based on Income

Quarterly Incentive Fee Based on Income

The incentive fee on net investment income for each quarter is determined as follows:

No incentive fee on net investment income is payable to MCC Advisors for any calendar quarter for which there is no Excess Income Amount;

17.5% of the Ordinary Income that exceeds the Catch-up Amount is included in the calculation of the incentive fee on net investment income.

value but is less than the incentive fee on net investment income that is payable to MCC Advisors for such quarter (before giving effect to the Incentive Fee Cap) calculated as described above, the Company will pay an incentive fee on net investment income to MCC Advisors equal to the Incentive Fee Cap for such quarter. If, in any quarter, the Incentive Fee Cap for such quarter is equal to or greater than the incentive fee on net investment income that is payable to MCC Advisors for such quarter (before giving effect to the Incentive Fee Cap) calculated as described above, the Company will pay an incentive fee on net investment income to MCC Advisors, calculated as described above, for such quarter without regard to the Incentive Fee Cap.

Dilution to the Company’s net assets due to capital raising is calculated, in the case of issuances of common stock, as the amount by which the net asset value per share was adjusted over the transaction price per share, multiplied by the number of shares issued. Accretion to the Company’s net assets due to capital raising is calculated, in the case of issuances of common stock (including issuances pursuant to our dividend reinvestment plan), as the excess of the transaction price per share over the amount by which the net asset value per share was adjusted, multiplied by the number of shares issued. Accretion to the Company’s net assets due to other capital action is calculated, in the case of repurchases by the Company of its own common stock, as the excess of the amount by which the net asset value per share was adjusted over the transaction price per share multiplied by the number of shares repurchased by the Company.

Critical Accounting Policies

The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies.

Valuation of Portfolio Investments

We value investments for which market quotations are readily available at their market quotations, which are generally obtained from an independent pricing service or multiple broker-dealers or market makers. We weight the use of third-party broker quotes, if any, in determining fair value based on our understanding of the level of actual transactions used by the broker to develop the quote and whether the quote was an indicative price or binding offer. However, a readily available market value is not expected to exist for many of the investments in our portfolio, and we value these portfolio investments at fair value as determined in good faith by our board of directors under our valuation policy and process. We may seek pricing information with respect to certain of our investments from pricing services or brokers or dealers in order to value such investments.

Valuation methods may include comparisons of financial ratios of the portfolio companies that issued such private equity securities to peer companies that are public, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash

flows, the markets in which the portfolio company does business, and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we will consider the pricing indicated by the external event to corroborate the private equity valuation. 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 the investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

Our board of directors is ultimately and solely responsible for determining the fair value of the investments in our portfolio that are not publicly traded, whose market prices are not readily available on a quarterly basis or any other situation where portfolio investments require a fair value determination.

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

Our quarterly valuation process begins with each investment being initially valued by the investment professionals responsible for monitoring the portfolio investment.

Preliminary valuation conclusions are then documented and discussed with senior management.

Independent third-party valuation firms are also employed for all of our investments for which there is not a readily available market value. At least twice annually, including at year end, the valuation for each portfolio investment is reviewed by an independent valuation firm.

The audit committee of our board of directors reviews the preliminary valuations of the investment professionals, senior management and independent valuation firms.

Our audit committee reviews and the board of directors approves the valuations and determines the fair value of each investment in our portfolio in good faith based on the input of MCC Advisors, the respective independent valuation firms and the audit committee.

In following these approaches, the types of factors that are taken into account in fair value pricing investments include available current market data, including relevant and applicable market trading and transaction comparables; applicable market yields and multiples; security covenants; call protection provisions; information rights; the nature and realizable value of any collateral; the portfolio company’s ability to make payments; the portfolio company’s earnings and discounted cash flows; the markets in which the portfolio company does business; comparisons of financial ratios of peer companies that are public; comparable merger and acquisition transactions; and the principal market and enterprise values.

Determination of fair values involves subjective judgments and estimates made by management. The notes to our financial statements refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our consolidated financial statements.

Revenue Recognition

Our revenue recognition policies are as follows:

Investments and Related Investment Income We account for investment transactions on a trade-date basis and interest income, adjusted for amortization of premiums and accretion of discounts, is recorded on an accrual basis. For investments with contractual PIK interest, which represents contractual interest accrued and added to the principal balance that generally becomes due at maturity, we will not accrue PIK interest if the portfolio company valuation indicates that the PIK interest is not collectible. Origination, closing and/or commitment fees associated with investments in portfolio companies are recognized as income when the investment transaction closes. Other fees are capitalized as deferred revenue and recorded into income over the respective period. Prepayment penalties received by the Company for debt instruments paid back to the Company prior to the maturity date are recorded as income upon receipt. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the amortized cost basis of investment, without regard to unrealized gains or losses previously recognized. We report changes in the fair value of investments that are measured at fair value as a component of the net change in unrealized appreciation/(depreciation) on investments in our Consolidated Statements of Operations.

Non-accrual We place loans on non-accrual status when principal and interest payments are past due by 90 days or more, or when there is reasonable doubt that we will collect principal or interest. Accrued interest is generally reversed when a loan is placed on non-accrual. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in our management’s judgment, are likely to remain current. ~~At December~~As of March 31, ~~2017,~~2019, certain investments in ~~eight~~nine portfolio companies held by the Company were on non-accrual status with a combined fair value of approximately ~~$65.2~~$55.7 million, or ~~7.8%~~9.1% of the fair value of our portfolio. AtAs of September 30, ~~2017,~~2018, certain investments in ~~six~~nine portfolio companies held by the Company were on non-accrual status with a combined fair value of approximately ~~$72.5~~$48.1 million, or ~~8.7%~~7.3% of the fair value of our portfolio.

Federal Income Taxes

The Company has elected, and ~~qualified~~intends to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the ~~Code, commencing with its first taxable year as a corporation, and it intends to operate in a manner so as to maintain its RIC tax treatment.~~Code. As a RIC, among other things, the Company is required to meet certain source of income and asset diversification requirements. Once qualified as a RIC, the Company must timely distribute to its stockholders at least 90% of the sum of investment company taxable income (“ICTI”) including PIK, as defined by the Code, and net tax exempt interest income (which is the excess of our gross tax exempt interest income over certain disallowed deductions) for each taxable year in order to be eligible for tax treatment under Subchapter M of the Code. The Company will be subject to a nondeductible U.S.

federal excise tax of 4% on undistributed income if it does not distribute at least 98% of its net ordinary income for any calendar year and 98.2% of its capital gain net income for each one-year period ending on October 31 of such calendar year and any income realized, but not distributed, in preceding years and on which we did not pay federal income tax. Depending on the level of ICTI earned in a tax year, the Company may choose to carry forward ICTI in excess of current year dividend distributions into the next tax year and pay a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions for excise tax purposes, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. Any such carryover ICTI must be distributed before the end of that next tax year through a dividend declared prior to filing the final tax return related to the year which generated such ICTI.

Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences 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. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

~~Recent Developments~~

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates. Changes in interest rates may affect both our cost of funding and our interest income from portfolio investments and cash and cash equivalents. Our investment income will be affected by changes in various interest rates, including LIBOR, to the extent our debt investments include floating interest rates. In the future, we expect other loans in our portfolio will have floating interest rates. We may hedge against interest rate fluctuations by using standard hedging instruments such as futures, options and forward contracts subject to the requirements of the 1940 Act. For the ~~three~~six months ended ~~December~~March 31, ~~2017,~~2019, we did not engage in hedging activities.

As of ~~December~~March 31, ~~2017, 83.7%~~2019, 80.4% of our income-bearing investment portfolio bore interest based on floating rates. The composition of our floating rate debt investments by cash interest rate LIBOR floor as of ~~December~~March 31, ~~2017~~2019 was as follows (dollars in thousands):


	December 31, 2017				March 31, 2019
LIBOR Floor	Fair Value		% of Floating Rate Portfolio		Fair Value		% of Floating Rate Portfolio
Under 1%	$	81,937	14.8	%	$	—	—	%
1% to under 2%	452,368		82.0		304,930		94.6
2% to under 3%	14,967		2.7		17,431		5.4
3%	2,633		0.5
Total	$	551,905	100.0	%	$	322,361	100.0	%

Based on our Consolidated Statements of Assets and Liabilities as of ~~December~~March 31, 2017, the following table (dollars in thousands) shows the approximate increase/(decrease) in components of net assets resulting from operations of hypothetical LIBOR base rate changes in interest rates, assuming no changes in our investment and capital structure.

Basis point increase
Interest Income⁽¹⁾
Interest Expense
Net Increase/
(Decrease)
100 $ 5,200
$ 1,500
$ 3,700
200 10,500
3,000
7,500
300 15,900
4,500
11,400
400 21,300
6,000
15,300
500 26,700
7,500
19,200

As of September 30, 2017, 83.5% of our income-bearing investment portfolio bore interest based on floating rates. The composition of our floating rate debt investments by cash LIBOR interest rate floor as of September 30, 2017 was as follows (dollars in thousands):

September 30, 2017
LIBOR Floor Fair Value
% of Floating
Rate Portfolio
Under 1% $ 84,166
14.9 %
1% to under 2% 425,749
75.3
2% to under 3% 50,245
8.9
3% 4,916
0.9
Total $ 565,076
100.0 %

~~Based on our Consolidated Statements of Assets and Liabilities as of September 30, 2017,~~2019, the following table (dollars in thousands) shows the approximate increase/(decrease) in components of net assets resulting from operations of hypothetical LIBOR base rate changes in interest rates, assuming no changes in our investment and capital structure.


Basis point increase	Interest Income⁽¹⁾		Interest Expense		Net Increase/ (Decrease)
Basis point increase/(decrease)							Interest Income⁽¹⁾			Interest Expense		Net Increase/ (Decrease)
300							$	9,800		$	—	$	9,800
200							6,500			—		6,500
100	$	5,300	$	1,700	$	3,600	3,300			—		3,300
200	11,200		3,400		7,800
300	17,100		5,100		12,000
400	23,000		6,800		16,200
500	28,900		8,500		20,400
(100)							(3,200		)	—		(3,200		)
(200)							(5,200		)	—		(5,200		)
(300)							(5,200		)	—		(5,200		)


(1)	Assumes no defaults or prepayments by portfolio companies over the next twelve months.

Item 4.Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, under the supervision of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of ~~December~~March 31, ~~2017.~~2019. The term “disclosure controls and procedures” is defined under Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on the evaluation of our disclosure controls and procedures as of ~~December~~March 31, ~~2017,~~2019, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective. It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system are met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of control systems, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

~~Changes~~Change in Internal Control Over Financial Reporting

There has not been any change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II

Item 1. Legal Proceedings

From time to time, we are involved in various legal proceedings, lawsuits and claims incidental to the conduct of our business. Our businesses are also subject to extensive regulation, which may result in regulatory proceedings against us. Except as described below, we are not currently party to any material legal proceedings.

On January 25, 2019, two purported class actions were commenced in the Supreme Court of the State of New York, County of New York, by alleged stockholders of Medley Capital Corporation, captioned, respectively, Helene Lax v. Brook Taube, et al., Index No. 650503/2019, and Richard Dicristino, et al. v. Brook Taube, et al., Index No. 650510/2019 (together with the Lax Action, the “New York Actions”). Named as defendants in each complaint are Brook Taube, Seth Taube, Jeffrey Tonkel, Arthur S. Ainsberg, Karin Hirtler-Garvey, John E. Mack, Mark Lerdal, Richard T. Allorto, Jr., Medley Capital Corporation, Medley Management Inc., Sierra Income Corporation, and Sierra Management, Inc. The complaints in each of the New York Actions allege that the individuals named as defendants breached their fiduciary duties in connection with the proposed merger of MCC with and into Sierra, and that the other defendants aided and abetted those alleged breaches of fiduciary duties. Compensatory damages in unspecified amounts are sought. On February 27, 2019, the Court entered a stipulated scheduling order requiring that defendants respond to the complaints 45 days following the later of (a) the stockholder vote on the proposed merger and (b) plaintiffs’ filing of a consolidated, amended complaint. A preliminary conference is scheduled to take place on May 14, 2019. The defendants believe the claims asserted in the New York Actions are without merit and they intend to defend these lawsuits vigorously. At this time, we are unable to determine whether an unfavorable outcome from these matters is probable or remote or to estimate the amount or range of potential loss, if any.

On February 11, 2019, a putative stockholder class action related to the MCC Merger was commenced in the Court of Chancery of the State of Delaware by FrontFour Capital Group LLC and FrontFour Master Fund, Ltd. (collectively, “FrontFour”). . The action, as consolidated, is captioned In re Medley Capital Corporation Stockholder Litigation, C.A. 2019-0100-KSJM (the “Class Action”). The complaint alleged that the Company’s directors (Brook Taube, Seth Taube, Jeff Tonkel, Mark Lerdal, Karin Hirtler-Garvey, John E. Mack, and Arthur S. Ainsberg) breached their fiduciary duties to the Company’s stockholders in connection with the MCC Merger, and that MDLY, Sierra, MCC Advisors, Medley Group LLC, and Medley LLC aided and abetted those alleged breaches of fiduciary duties. On March 11, 2019, following a two-day trial, the Court issued a Memorandum Opinion (the “Decision”) denying FrontFour’s requests to (i) permanently enjoin the MCC Merger and (ii) require the Company to conduct a “shopping process” for the Company on terms proposed by FrontFour in its complaint. The Court held that the Company’s directors breached their fiduciary duties in entering into the MCC Merger, but rejected FrontFour’s claim that Sierra aided and abetted those breaches of fiduciary duties. The Court ordered the defendants to issue corrective disclosures consistent with the Decision, and enjoined a vote of the Company’s stockholders on the MCC Merger until such disclosures have been made and stockholders have had the opportunity to assimilate this information. On March 20, 2019, another purported stockholder class action was commenced by Stephen Altman against Brook Taube, Seth Taube, Jeff Tonkel, Arthur S. Ainsberg, Karin Hirtler-Garvey, Mark Lerdal, and John E. Mack in the Court of Chancery of the State of Delaware, captioned Altman v. Taube, Case No. 2019-0219 (the “Altman Action”). The complaint alleged that the defendants breached their fiduciary duties to stockholders of the Company in connection with the vote of the Company’s stockholders on the proposed mergers. On April 8, 2019, the Court granted a stipulation consolidating the Class Action and the Altman Action, designating the amended complaint in the Class Action as the operative complaint, and designating the plaintiffs in the Class Action and their counsel the lead plaintiffs and lead plaintiffs’ counsel, respectively.

On April 15, 2019, certain parties in the Class Action reached agreement on the principal terms of a settlement of the Class Action, which are contained in a binding term sheet, dated April 15, 2019 (the “Settlement Term Sheet”), among Brook Taube, Seth Taube, Jeff Tonkel, Mark Lerdal, Karin Hirtler-Garvey, John E. Mack, Arthur S. Ainsberg, the Company, MCC Advisors, Medley LLC, and Medley Group LLC (the “Medley Parties”), on the one hand, and FrontFour, on behalf of itself and a class of similarly situated stockholders of the Company, on the other hand. The Settlement Term Sheet is intended to form the basis of a definitive stipulation of settlement in the Class Action. The Settlement Term Sheet provides that the Company will seek to obtain the agreement and/or consent of Sierra to effect certain amendments to (i) the MCC Merger Agreement and (ii) the MDLY Merger Agreement (together with the MCC Merger Agreement, the “Merger Agreements”). If the foregoing amendments are entered into they will, among other matters (as described in further detail in the Settlement Term Sheet): (a) extend the Outside Date (as defined in the Merger Agreements) to October 31, 2019; (b) permit the Company’s special committee of independent directors (the “MCC Special Committee”) to undertake a sixty-day “go shop” process to solicit superior transactions to the MCC Merger and (c) if the MCC Merger is consummated, create a settlement fund, consisting of $17 million in cash and $30 million of Sierra stock, with the number of shares of Sierra stock to be calculated using the pro forma net asset value reported in the future proxy supplement describing the amendments to the MCC Merger Agreement, which will be distributed to eligible members of the Class (as defined in the Settlement Term Sheet). In connection with the Settlement Term Sheet, MDLY has executed an acknowledgement and agreement to take certain actions, including consenting to certain amendments to the Merger Agreements, in furtherance of the transactions contemplated thereby.

Settlement Term Sheet may be terminated by the Company or FrontFour. The contemplated amendments to the Merger Agreements require the agreement of Sierra and there can be no assurance that such agreement will be obtained or that agreements on the amendments to the Merger Agreements will be reached. In connection with the execution of the Settlement Term Sheet, effective as of April 15, 2019, the Board appointed David A. Lorber and Lowell W. Robinson to the Board to fill the vacancies on the Board created by the resignations of Mark Lerdal and John E. Mack, respectively.

On March 1, 2019, Marilyn Adler, a former employee who served as a Managing Director of Medley Capital LLC, filed suit in the New York Supreme Court, Commercial Part, against Medley Capital LLC, MCC Advisors, Medley SBIC GP, LLC, the Company, MDLY, as well as Brook Taube, and Seth Taube, individually. The action is captioned Marilyn S. Adler v. Medley Capital LLC et al. (Supreme Court of New York, March 2019). Ms. Adler alleges that she is due in excess of $6.5 million in compensation based upon her role with Medley’s SBIC Fund. Her claims are for breach of contract, unjust enrichment, conversion, tortious interference, as well as a claim for an accounting of funds maintained by the defendants. The lawsuit is in its very initial stages. The Company believes the claims are without merit, intends to vigorously defend them, and is contemplating counterclaims against Ms. Adler.

The Company was named as a defendant in a lawsuit on May 29, 2015, by Moshe Barkat and Modern VideoFilm Holdings, LLC (“MVF Holdings”) against ~~MCC,~~the Company, MOF II, MCC Advisors LLC, Deloitte Transactions and Business Analytics LLP A/K/A Deloitte ERG (“Deloitte”), Scott Avila (“Avila”), Charles Sweet, and Modern VideoFilm, Inc. (“MVF”). The lawsuit is pending in the California Superior Court, Los Angeles County, Central District, as Case No. BC 583437. The lawsuit was filed after ~~MCC,~~the Company, as agent for the lender group, exercised remedies following a series of defaults by MVF and MVF Holdings on a secured loan with an outstanding balance at the time in excess of $65 million. The lawsuit sought damages in excess of $100 million. Deloitte and Avila have settled the claims against them in exchange for payment of $1.5 million. ~~Following a separate lawsuit by Mr. Barkat against MVF's D&O insurance carrier, the carrier, Charles Sweet and MVF have settled the claims against them.~~ On June 6, 2016, the court granted the ~~defendants'~~Medley defendants’ demurrers on several counts and dismissed Mr. ~~Barkat's~~Barkat’s claims with prejudice except with respect to his claim for intentional interference with contract. ~~MCC~~On March 18, 2018, the court granted the Medley defendants’ motion for summary adjudication with respect to Mr. Barkat’s sole remaining claim against the Medley Defendants for intentional interference. Now that the trial court has ruled in favor of the Medley defendants on all counts, the only remaining claims in the Barkat litigation are the Company and ~~the other defendants continue to dispute the remaining allegations and are vigorously defending the lawsuit while pursuing~~MOF II’s affirmative counterclaims against Mr. Barkat and MVF ~~Holdings.~~ Holdings, which the Company and MOF II are diligently prosecuting.

On August 29, 2016, MVF Holdings filed another lawsuit in the California Superior Court, Los Angeles County, Central District, as Case No. BC 631888 (the “Derivative Action”), naming ~~Medley~~MCC Advisors LLC and certain of Medley’s employees as ~~a defendant,~~defendants, among others. InThe plaintiff in the Derivative Action, ~~MVF Holdings reasserts substantially~~asserts claims against the ~~same claims that were previously asserted in each of their three prior complaints. MVF Holdings claims~~defendants for breach of fiduciary duty, aiding and ~~related causes~~abetting breach of ~~action have already been dismissed by~~fiduciary duty, unfair competition, breach of the ~~California Superior Court on several occasions, most recently, on June 6, 2016, when the Court dismissed those claims~~implied covenant of good faith and fair dealing, interference with ~~prejudice. Medley~~prospective economic advantage, fraud, and declaratory relief. MCC Advisors LLC and the other defendants believe the ~~outstanding claims for alleged interference with Mr. Barkat's employment contract, and the other~~ causes of action asserted in the Derivative Action are without merit and all defendants intend to continue to assert a vigorous defense. All proceedings in the Derivative Action have been stayed as a result of the chapter 11 bankruptcy proceedings of MVF, which were commenced on May 16, 2018. On August 29, 2016, however, despite the automatic stay of the MVF Bankruptcy, the Plaintiff filed an amended complaint seeking to restyle the derivative action into a direct action to circumvent the MVF bankruptcy’s automatic stay. To date, the California Superior Court has not proceeded with the amended complaint.

Medley LLC, ~~the Company, and~~Medley Capital Corporation, Medley Opportunity Fund II LP, Medley Management, Inc., Medley Group, LLC, Brook Taube, and Seth Taube were ~~served on January 2, 2018 with a complaint naming them~~named as defendants, along with other various parties, in a putative class action ~~lawsuit. The case is~~lawsuit captioned as ~~Solomon v. American Web Loan, et al.~~ Royce Solomon, Jodi Belleci, Michael Littlejohn, and Giulianna Lomaglio v. American Web Loan, Inc., AWL, Inc., Mark Curry, MacFarlane Group, Inc., ~~The MacFarlane Group, LLC,~~ Sol Partners, Medley Opportunity Fund, II, LP, Medley LLC, Medley Capital ~~Corp., Oakmont Funding,~~Corporation, Medley Management, Inc., ~~Dinero Investments, Inc., Chieftain Funding, Inc., Dant Holdings, Inc.,~~Medley Group, LLC, Brook Taube, Seth Taube, DHI Computing Service, Inc., ~~Smith Haynes & Watson, LLC,~~ Middlemarch Partners, and John Does 1-100, ~~and was~~ filed on December 15, 2017, amended on March 9, 2018, and amended a second time on February 15, 2019, in the United States District Court for the Eastern District of Virginia, Newport News Division, as Case No. 4:~~17cv145.~~17-cv-145 (hereinafter, “Class Action 1”). Medley Opportunity Fund II LP and Medley Capital Corporation were also named as defendants, along with various other parties, in a putative class action lawsuit captioned George Hengle and Lula Williams v. Mark Curry, American Web Loan, Inc., AWL, Inc., Red Stone, Inc., Medley Opportunity Fund II LP, and Medley Capital Corporation, filed February 13, 2018, in the United States District Court, Eastern District of Virginia, Richmond Division, as Case No. 3:18-cv-100 (“Class Action 2”). Medley Opportunity Fund II LP and Medley Capital Corporation were also named as defendants, along with various other parties, in a putative class action lawsuit captioned John Glatt, Sonji Grandy, Heather Ball, Dashawn Hunter, and Michael Corona v. Mark Curry, American Web Loan, Inc., AWL, Inc., Red Stone, Inc., Medley Opportunity Fund II LP, and Medley Capital Corporation, filed August 9, 2018 in the United States District Court, Eastern District of Virginia, Newport News Division, as Case No. 4:18-cv-101 (“Class Action 3”) (together with Class Action 1 and Class Action 2, the “Virginia Class Actions”). Medley Opportunity Fund II LP was also named as a defendant, along with various other parties, in a putative class action lawsuit captioned Christina Williams and Michael Stermel v. Red Stone, Inc. (as successor in interest to MacFarlane Group, Inc.), Medley Opportunity Fund II LP, Mark Curry, Brian McGowan, Vincent Ney, and John Doe entities and individuals, filed June 29, 2018 and amended July 26, 2018, in the United States District Court for the Eastern District of Pennsylvania, as Case No. 2:18-cv-2747 (the “Pennsylvania Class Action”) (together with the Virginia Class Actions, the “Class Action Complaints”). The plaintiffs in the Class Action Complaints filed ~~this~~their putative class ~~action~~actions alleging claims under the Racketeer Influenced and Corrupt Organizations ~~Act and the Truth in Lending~~ Act, and various other claims arising out of the alleged payday lending activities of American Web Loan. The claims against Medley Opportunity Fund II LP, Medley LLC, Medley Capital Corporation, Medley Management, Inc., Medley Group, LLC, Brook Taube, and Seth Taube (in Class Action 1, as amended); Medley Opportunity Fund II LP and Medley Capital Corporation (in Class Action 2 and Class Action 3); and Medley Opportunity Fund II LP (in the ~~Company~~Pennsylvania Class Action), allege that ~~the Medley~~those defendants in each respective action exercised control over, or improperly derived income from, and/or obtained an improper interest in, American Web Loan’s payday lending activities as a result of a ~~$22.9 million~~ loan to American Web Loan. The loan was made by Medley Opportunity Fund II LP in 2011. American Web Loan repaid the loan from Medley Opportunity Fund II LP in full in February of 2015, more than ~~ten~~1 year and 10 months prior to any of the loans allegedly made by American Web Loan to the alleged class plaintiff ~~representatives. The Company~~representatives in Class Action 1. In Class Action 2, the alleged class plaintiff representatives have not alleged when they received any loans from American Web Loan. In Class Action 3, the alleged class plaintiff representatives claim to have received loans from American Web Loan at various times from February 2015 through April 2018. In the Pennsylvania Class Action, the alleged class plaintiff representatives claim to have received loans from American Web Loan in 2017. By orders dated August 7, 2018 and September 17, 2018, the Court presiding over the Virginia Class Actions consolidated those cases for all purposes. On October 12, 2018, Plaintiffs in Class Action 3 filed a notice of voluntary dismissal of all claims, and on October 29, 2018, Plaintiffs in Class Action 2 filed a notice of voluntary dismissal of all claims. Medley LLC, Medley Capital Corporation, Medley Management, Inc., Medley Group, LLC, Brook Taube, and Seth Taube never made any loans or provided financing to, or had any other relationship with, American Web Loan. ~~The~~ Medley ~~defendants~~Opportunity Fund II LP, Medley LLC, Medley Capital Corporation, Medley Management, Inc., Medley Group, LLC, Brook Taube, Seth Taube are seeking indemnification from American Web Loan, various affiliates, and other parties with respect to ~~these claims. The~~the claims in the Class Action Complaints. Medley ~~defendants~~Opportunity Fund II LP, Medley LLC, Medley

Capital Corporation, Medley Management, Inc., Medley Group, LLC, Brook Taube, and Seth Taube believe the alleged claims in the Class Action Complaints are without merit and they intend to defend ~~this lawsuit~~these lawsuits vigorously.

Item 1A. Risk Factors

In addition to other information set forth in this report, you should carefully consider the “Risk Factors” discussed in our annual report on Form 10-K for the fiscal year ended ~~September��~~September 30, ~~2017,~~2018, filed with the SEC on December ~~7, 2017,~~4, 2018, which could materially affect our business, financial condition and/or operating results. ~~Other than the item disclosed below, there~~There have been no material changes during the ~~three~~six months ended ~~December~~March 31, ~~2017~~2019 to the risk factors discussed in “Item 1A. Risk Factors” of our annual report on Form 10-K. Additional risks or uncertainties not currently known to us or that we currently deem to be immaterial also may materially affect our business, financial condition and/or operating results.

~~We cannot predict how tax reform legislation will affect us, our investments, or our stockholders, and any such legislation could adversely affect our business.~~

Legislative or other actions relating to taxes could have a negative effect on us. The rules dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Treasury Department. The U.S. House of Representatives and U.S. Senate recently passed tax reform legislation, which the President recently signed into law. Such legislation has made many changes to the Code, including significant changes to the taxation of business entities, the deductibility of interest expense, and the tax treatment of capital investment. We cannot predict with certainty how any changes in the tax laws might affect us, our stockholders, or our portfolio investments. New legislation and any U.S. Treasury regulations, administrative interpretations or court decisions interpreting such legislation could significantly and negatively affect our ability to qualify for tax treatment as a RIC or the U.S. federal income tax consequences to us and our stockholders of such qualification, or could have other adverse consequences. Stockholders are urged to consult with their tax advisors regarding tax legislative, regulatory, or administrative developments and proposals and their potential effect on an investment in our securities.

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

On February 5, 2015, our board of directors approved a share repurchase program pursuant to which we could purchase up to an aggregate amount of $30.0 million of our common stock between the period of the approval date and February 5, 2016. On December 4, 2015, the board of directors extended the duration of the share repurchase program through December 31, 2016, and increased the aggregate amount to $50.0 million. On December 7, 2016, the board of directors extended the duration of the share repurchase program through December 31, 2017. Any stock repurchases will be made through the open market at times, and in such amounts, as management deems appropriate. The Company did not repurchase any shares for the three months ended December 31, 2017.

None.

Item 3.Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits



3.1		Certificate of Incorporation (Incorporated by reference to Exhibit 99.A.3 to the Registrant’s Pre-effective Amendment No. 3 to the Registration Statement on Form N-2, filed on November 22, 2010).

3.2		Form of Bylaws (Incorporated by reference to Exhibit 99.B.3 to the Registrant’s Pre-effective Amendment No. 3 to the Registration Statement on Form N-2, filed on November 22, 2010).

3.3		Amendment to Bylaws (Incorporated by reference to the Current Report on Form 8-K filed February 7, 2019).

4.1		Form of Stock Certificate (Incorporated by reference to Exhibit 99.D to the Registrant’s Pre-effective Amendment No. 3 to the Registration Statement on Form N-2, filed on November 22, 2010).

4.2		Indenture, dated February 7, 2012, between Medley Capital Corporation and U.S. Bank National Association, as Trustee (Incorporated by reference to Exhibit 99.D.2 to the Registrant’s Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2 (File No. 333-179237), filed on February 13, 2012).

4.3		First Supplemental Indenture, dated March 21, 2012, between Medley Capital Corporation and U.S. Bank National Association, as Trustee (Incorporated by reference to Exhibit 99.D.4 to the Registrant’s Post-Effective Amendment No. 2 to the ~~Registration~~Registrant Statement on Form N-2 (File No. 333-179237), filed on March 21, 2012).

4.4		Second Supplemental Indenture, dated March 18, 2013, between Medley Capital Corporation and U.S. Bank National Association, as Trustee (Incorporated by reference to Exhibit 99.D.4 to the Registrant’s Post-Effective Amendment No. 7 to the ~~Registration~~Registrant Statement on Form N-2 (File No. 333-179237), filed on March 15, 2013).

4.5		~~Third Supplemental Indenture,~~Deed of Trust, dated ~~December 17, 2015,~~January 23, 2018, between Medley Capital Corporation and ~~U.S. Bank National Association, as Trustee~~Mishmeret Trust Company, Ltd. (Incorporated by reference to ~~Exhibit 99.D.6 to~~ the ~~Registrant’s Post-Effective Amendment No. 11 to the~~Registrant's Registration Statement on Form N-2, ~~(File No. 333-187324),~~ filed on ~~December 17, 2015)~~April 10, 2019).

4.6		Statement of Eligibility of Trustee on Form T-1 (Incorporated by reference to Exhibit d.5 to the Registrant’s Registration Statement on Form N-2, filed on March 15, 2013).

10.1		Form of Amended and Restated Investment Management Agreement between Registrant and MCC Advisors LLC (Incorporated by reference to Exhibit 99.G to Registrant’s Post-Effective Amendment No. 3 to the Registration Statement on N-2, filed on December 10, 2013).

10.2		Letter from MCC Advisors LLC re: Waiver of Base Management Fee and Incentive Fee on Net Investment Income, dated February 8, 2016 (Incorporated by reference to Exhibit 99.K.5 to Registrant’s Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2 (File No. 333-208746), filed on March 25, 2016).

10.3		Form of Custody Agreement (Incorporated by reference to Exhibit 99.J.1 to the Registrant’s Pre-effective Amendment No. 3 to the Registration Statement on Form N-2, filed on November 22, 2010).



10.4		Form of Administration Agreement (Incorporated by reference to Exhibit 99.K.2 to the Registrant’s Pre-effective Amendment No. 1 to the Registration Statement on Form N-2, filed on June 9, 2010).

10.5		Form of Sub-Administration Agreement (Incorporated by reference to Exhibit 99.K.4 to the Registrant’s Pre-effective Amendment No. 3 to the Registration Statement on Form N-2 (File No. 333-166491), filed on November 22, 2010).

10.6		Trademark License Agreement (Incorporated by reference to Exhibit 99.K.3 to the Registrant’s Pre-effective Amendment No. 1 to the Registration Statement on Form N-2, filed on June 9, 2010).

10.7		Form of Dividend Reinvestment Plan (Incorporated by reference to Exhibit 99.E to the Registrant’s Pre-effective Amendment No. 3 to the Registration Statement on Form N-2, filed on November 22, 2010).

10.8		Senior Secured Revolving Credit Agreement among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, dated August 4, 2011 (Incorporated by reference to the Current Report on Form 8-K filed on August 9, 2011).




10.9		Guarantee, Pledge and Security Agreement among the Company, the Subsidiary Guarantors party thereto, ING Capital LLC, as Administrative Agent, each Financial Agent and Designated Indebtedness Holder party thereto and ING Capital LLC, as Collateral Agent, dated August 4, 2011 (Incorporated by reference to the Current Report on Form 8-K filed on August 9, 2011).

10.10		Amendment No. 1, dated as of August 31, 2012, to the Senior Secured Revolving Credit Agreement dated as of August 4, 2011, among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent (Incorporated by reference to the Current Report on Form 8-K filed on September 6, 2012).

10.11		Amendment No. 2, dated as of December 7, 2012, to the Senior Secured Revolving Credit Agreement dated as of August 4, 2011, among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, as amended by Amendment No. 1 to the Senior Secured Revolving Credit Agreement, dated as of August 31, 2012 (Incorporated by reference to the Current Report on Form 8-K filed on December 13, 2012).

10.12		Amendment No. 3, dated as of March 28, 2013, to the Senior Secured Revolving Credit Agreement dated as of August 4, 2011, among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, as amended by Amendment Nos. 1 and 2 to the Senior Secured Revolving Credit Agreement, dated as of August 31, 2012 and December 7, 2012, respectively (Incorporated by reference to the Current Report on Form 8-K filed on April 2, 2013).

10.13		Senior Secured Term Loan Credit Agreement, dated as of August 31, 2012, among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent (Incorporated by reference to the Current Report on Form 8-K filed on September 6, 2012).

10.14		Amendment No. 1, dated as of December 7, 2012, to the Senior Secured Term Loan Credit Agreement dated as of August 31, 2012, among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent (Incorporated by reference to the Current Report on Form 8-K filed on December 13, 2012).

10.15		Amendment No. 2, dated as of January 23, 2013, to the Senior Secured Term Loan Credit Agreement dated as of August 31, 2012, among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, as amended by Amendment No. 1 to the Senior Secured Term Loan Credit Agreement, dated as of January 23, 2013 (Incorporated by reference to the Current Report on Form 8-K filed on January 29, 2013).

10.16		Amendment No. 3, dated as of March 28, 2013, to the Senior Secured Term Loan Credit Agreement, dated as of August 31, 2012, among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, as amended by Amendment Nos. 1 and 2 to the Senior Secured Term Loan Credit Agreement, dated as of December 7, 2012 and January 23, 2013, respectively (Incorporated by reference to the Current Report on Form 8-K filed on April 2, 2013).

10.17		Amendment No. 4, dated as of May 1, 2013, to the Senior Secured Revolving Credit Agreement, dated as of August 4, 2011, among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, as amended by Amendment Nos. 1, 2 and 3 to the Senior Secured Revolving Credit Agreement, dated as of August 31, 2012, December 7, 2012 and March 28, 2013, respectively (Incorporated by reference to the Current Report on Form 8-K filed on May 7, 2013).

10.18		Amendment No. 4, dated as of May 1, 2013, to the Senior Secured Term Loan Credit Agreement, dated as of August 31, 2012, among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, as amended by Amendment Nos. 1, 2 and 3 to the Senior Secured Term Loan Credit Agreement, dated as of December 7, 2012, January 23, 2013 and March 28, 2013, respectively (Incorporated by reference to the Current Report on Form 8-K filed on May 7, 2013).

10.19		Amendment No. 5, dated as of June 2, 2014, to the Senior Secured Revolving Credit Agreement, dated as of August 4, 2011, among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, as amended by Amendment Nos. 1, 2, 3 and 4 to the Senior Secured Revolving Credit Agreement, dated as of August 31, 2012, December 7, 2012, March 28, 2013 and May 1, 2013, respectively (Incorporated by reference to the Current Report on Form 8-K filed on June 3, 2014).

10.20		Amendment No. 5, dated as of June 2, 2014, to the Senior Secured Term Loan Credit Agreement, dated as of August 31, 2012, among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, as amended by Amendment Nos. 1, 2, 3 and 4 to the Senior Secured Term Loan Credit Agreement, dated as of December 7, 2012, January 23, 2013, March 28, 2013 and May 1, 2013, respectively (Incorporated by reference to the Current Report on Form 8-K filed on June 3, 2014).




10.21		Amendment No. 6, dated as of February 2, 2015, to the Senior Secured Revolving Credit Agreement, dated as of August 4, 2011, among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, as amended by Amendment Nos. 1, 2, 3, 4 and 5 to the Senior Secured Revolving Credit Agreement, dated as of August 31, 2012, December 7, 2012, March 28, 2013, May 1, 2013 and June 2, 2014, respectively (Incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on February 9, 2015).

10.22		Amendment No. 6 to the Senior Secured Term Loan Credit Agreement, dated as of August 31, 2012, among Medley Capital Corporation as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, as amended by Amendment Nos. 1, 2, 3, 4 and 5 to the Senior Secured Term Loan Credit Agreement, dated as of December 7, 2012, January 23, 2013, March 28, 2013, May 1, 2013 and June 2, 2014, respectively (Incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed on February 9, 2015).

10.23		Amended and Restated Senior Secured Revolving Credit Agreement, dated as of July 28, 2015, by and among the Company as borrower, each of the subsidiary guarantors party thereto, the Lenders party thereto and ING Capital LLC, as Administrative Agent (Incorporated by reference to the Current Report on Form 8-K filed on July 30, 2015).




10.24		Amendment No. 1 to Amended and Restated Senior Secured Revolving Credit Agreement, dated as of September 16, 2016, by and among the Company as borrower, MCC Investment Holdings LLC, MCC Investment Holdings Sendero LLC, MCC Investment Holdings RT1 LLC, MCC Investment Holdings Omnivere LLC, MCC Investment Holdings Amvestar, LLC, and MCC Investment Holdings AAR, LLC, as subsidiary guarantors, the Lenders party thereto and ING Capital LLC, as Administrative Agent (Incorporated by reference to the Current Report on Form 8-K filed on September 22, 2016).

10.25		Amendment No. 2 to Amended and Restated Senior Secured Revolving Credit Agreement, dated as of February 8, 2017, by and among the Company as borrower, MCC Investment Holdings LLC, MCC Investment Holdings Sendero LLC, MCC Investment Holdings RT1 LLC, MCC Investment Holdings Omnivere LLC, MCC Investment Holdings Amvestar, LLC, and MCC Investment Holdings AAR, LLC, as subsidiary guarantors, the Lenders party thereto and ING Capital LLC, as Administrative Agent (Incorporated by reference to the Current Report on Form 8-K filed on February 10, 2017).

10.26		Amendment No. 3 to Amended and Restated Senior Secured Revolving Credit Agreement, dated as of September 1, 2017, by and among the Company as borrower, MCC Investment Holdings LLC, MCC Investment Holdings Sendero LLC, MCC Investment Holdings RT1 LLC, MCC Investment Holdings Omnivere LLC, MCC Investment Holdings Amvestar, LLC, and MCC Investment Holdings AAR, LLC, as subsidiary guarantors, the Lenders party thereto and ING Capital LLC, as Administrative Agent (Incorporated by reference to the Current Report on Form 8-K filed on September 8, 2017).

10.27		Amendment No. 4 to Amended and Restated Senior Secured Revolving Credit Agreement, dated as of February 12, 2018, by and among the Company as borrower, MCC Investment Holdings LLC, MCC Investment Holdings Sendero LLC, MCC Investment Holdings RT1 LLC, MCC Investment Holdings Omnivere LLC, MCC Investment Holdings Amvestar, LLC, and MCC Investment Holdings AAR, LLC, as subsidiary guarantors, the Lenders party thereto and ING Capital LLC, as Administrative Agent (Incorporated by reference to the Current Report on Form 8-K filed on February 16, 2018).

10.28		Amended and Restated Senior Secured Term Loan Credit Agreement dated as of July 28, 2015, by and among the Company as borrower, each of the subsidiary guarantors party thereto, the Lenders party thereto and ING Capital LLC, as Administrative Agent (Incorporated by reference to the Current Report on Form 8-K filed on July 30, 2015).

~~10.28~~10.29		Amendment No. 1 to Amended and Restated Senior Secured Term Loan Credit Agreement dated as of September 16, 2016, by and among the Company as borrower, MCC Investment Holdings LLC, MCC Investment Holdings Sendero LLC, MCC Investment Holdings RT1 LLC, MCC Investment Holdings Omnivere LLC, MCC Investment Holdings Amvestar, LLC, and MCC Investment Holdings AAR, LLC, as subsidiary guarantors, the Lenders party thereto and ING Capital LLC, as Administrative Agent (Incorporated by reference to the Current Report on Form 8-K filed on September 22, 2016).

~~10.29~~10.30		Amendment No. 2 to Amended and Restated Senior Secured Term Loan Credit Agreement dated as of February 8, 2017, by and among the Company as borrower, MCC Investment Holdings LLC, MCC Investment Holdings Sendero LLC, MCC Investment Holdings RT1 LLC, MCC Investment Holdings Omnivere LLC, MCC Investment Holdings Amvestar, LLC, and MCC Investment Holdings AAR, LLC, as subsidiary guarantors, the Lenders party thereto and ING Capital LLC, as Administrative Agent (Incorporated by reference to the Current Report on Form 8-K filed on February 10, 2017).

~~10.30~~10.31		Amendment No. 3 to Amended and Restated Senior Secured Term Loan Credit Agreement dated as of September 1, 2017, by and among the Company as borrower, MCC Investment Holdings LLC, MCC Investment Holdings Sendero LLC, MCC Investment Holdings RT1 LLC, MCC Investment Holdings Omnivere LLC, MCC Investment Holdings Amvestar, LLC, and MCC Investment Holdings AAR, LLC, as subsidiary guarantors, the Lenders party thereto and ING Capital LLC, as Administrative Agent (Incorporated by reference to the Current Report on Form 8-K filed on September 8, 2017).

~~10.31~~10.32		Incremental Assumption Agreement, dated as of February 10, 2012, made by Credit Suisse AG, Cayman Islands Branch, as Assuming Lender, relating to the Senior Secured Revolving Credit Agreement dated as of August 4, 2011, among Medley Capital Corporation, as Borrower, the Several Lenders and Agents from Time to Time Parties Thereto, and ING Capital LLC, as Administrative Agent and Collateral Agent (Incorporated by reference to the Current Report on Form 8-K filed on February 10, 2012).

~~10.32~~10.33		Incremental Assumption Agreement dated as of March 30, 2012, made by Onewest Bank, FSB, as Assuming Lender, relating to the Senior Secured Revolving Credit Agreement dated as of August 4, 2011, among Medley Capital Corporation, as Borrower, the Several Lenders and Agents from Time to Time Parties Thereto, and ING Capital LLC, as Administrative Agent and Collateral Agent (Incorporated by reference to the Current Report on Form 8-K filed on April 4, 2012).

~~10.33~~

10.34		Incremental Assumption Agreement dated as of May 3, 2012, made by Doral Bank, as Assuming Lender, relating to the Senior Secured Revolving Credit Agreement dated as of August 4, 2011, among Medley Capital Corporation, as Borrower, the Several Lenders and Agents from Time to Time Parties Thereto, and ING Capital LLC, as Administrative Agent and Collateral Agent (Incorporated by reference to the Current Report on Form 8-K filed on May 3, 2012).

~~10.34~~10.35		Incremental Assumption Agreement dated as of September 25, 2012, made by Stamford First Bank, a division of the Bank of New Canaan, as Assuming Lender, relating to the Senior Secured Revolving Credit Agreement dated as of August 4, 2011, as amended by Amendment No. 1, dated as of August 31, 2012, among Medley Capital Corporation, as Borrower, the Several Lenders and Agents from Time to Time Parties Thereto, and ING Capital LLC, as Administrative Agent and Collateral Agent (Incorporated by reference to the Current Report on Form 8-K filed on September 28, 2012).

~~10.35~~10.36		Limited Liability Company Operating Agreement of MCC Senior Loan Strategy JV I LLC, a Delaware Limited Liability Company, dated as of March 27, 2015 (Incorporated by reference to the Current Report on Form 8-K filed on March 30, 2015).

10.37		Agreement and Plan of Merger, dated as of August 9, 2018, by and between Medley Capital Corporation and Sierra Income Corporation (Incorporated by reference to the Current Report on Form 8-K filed on August 15, 2018).

10.38		Settlement Term Sheet, dated April 15, 2019 (Incorporated by reference to the Current Report on Form 8-K, filed on April 17, 2019).

14.1		Code of Business Conduct and Ethics of the Registrant (Incorporated by reference to Exhibit 14.1 to the Registrant’s 10-Q for the period ended June 30, 2011, filed on August 4, 2011).

14.2		Code of Business Ethics of MCC Advisors (Incorporated by reference to Exhibit 99.R.2 to the Registrant’s Pre-effective Amendment No. 1 to the Registration Statement on Form N-2, filed on June 9, 2010).



21.1		List of ~~Subsidiaries~~Subsidiaries**

24.0		Power of attorney (included on the signature page hereto).

31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.**

31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.**

32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to section 906 of The Sarbanes-Oxley Act of 2002.**

*		Filed herewith.

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.



Dated:	Medley Capital Corporation
~~February 6, 2018~~May 10, 2019

	By	/s/ Brook Taube
		Brook Taube
		Chief Executive Officer
		(Principal Executive Officer)

	By	/s/ Richard T. Allorto, Jr.
		Richard T. Allorto, Jr.
		Chief Financial Officer
		(Principal Accounting and Financial Officer)

2227



	December 31, 2017				September 30, 2017
	Revolving Facility		Term Facility		Revolving Facility		Term Facility
Total Debt Issuance Costs	$	8,546	$	4,490	$	8,546	$	4,490
Amortized Debt Issuance Costs	6,927		3,537		6,769		3,444
Unamortized Debt Issuance Costs	$	1,619	$	953	$	1,777	$	1,046