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Senior Secured Revolving Loan, Due 10/19/20262022-12-310001633858CPS, Unitranche Closing Date Term Loan, Due 6/01/20282022-01-012022-12-31

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

Amendment No. 1

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

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2023

OR

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

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: 814-01154

AUDAX CREDIT BDC INC.

(Exact name of registrant as specified in its charter)

DELAWARE
47-3039124

DELAWARE

47-3039124

(State or other jurisdiction of

incorporation or organization)
 

(I.R.S. Employer

Identification No.)  

101 HUNTINGTON AVENUE

BOSTON, MASSACHUSETTS

02199

(Address of principal executive office)

(Zip Code)

(617) (617) 859-1500

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

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

None.

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 x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes xNo ¨

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 12 b-2 of the Exchange Act.

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

x

Smaller reporting company

¨

Emerging growth company

x

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

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

The registrant had 43,159,035 shares of common stock, par value $0.001 per share, outstanding as of May 12, 2023.2023.

Table of Contents

EXPLANATORY NOTE

The registrant’s Form 10-Q for the quarterly period ended March 31, 2023 (the “Original Filing”) filed with the U.S. Securities and Exchange Commission on May 12, 2023 (the “Original Filing Date”) did not include inline XBRL tagging. The sole purpose of this Amendment No. 1 is to add inline XBRL tagging to the Original Filing in accordance with Rule 405 of Regulation S-T.

This Amendment No. 1 makes no material changes to the registrant’s Original Filing and does not reflect any subsequent events occurring after the Original Filing Date or materially modify or update disclosures made in the Original Filing.

Table of Contents

AUDAX CREDIT BDC INC.

TABLE OF CONTENTS

PART I.
FINANCIAL INFORMATION:

PART I.

FINANCIAL INFORMATION:

Item 1.

Financial Statements

Item 1.

Financial Statements

Statements of Assets and Liabilities as of March 31, 2023 (unaudited) and December 31, 2022

2

Statements of Operations for the three months ended March 31, 2023 (unaudited) and 2022 (unaudited)

3

Statements of Changes in Net Assets for the three months ended March 31, 2023 (unaudited) and 2022 (unaudited)

4

Statements of Cash Flows for the three months ended March 31, 2023 (unaudited) and 2022 (unaudited)

5

Schedules of Investments as of March 31, 2023 (unaudited) and December 31, 2022

6

Notes to Financial Statements (unaudited)

16

28

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

51

Overview

Overview37

52

Results of Operations

39

53

Financial Condition, Liquidity and Capital Resources

40

55

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

47

61

Item 4.

Controls and Procedures

48

62

PART II.

OTHER INFORMATION:

Item 1.

Legal Proceedings

49

63

Item 1A.

Risk Factors

49

63

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

50

64

Item 3.

Defaults Upon Senior Securities

50

64

Item 4.

Mine Safety Disclosures

50

64

Item 5.

Other Information

50

64

Item 6.

Exhibits

Exhibits50

64

SIGNATURES

51

66

Audax Credit BDC Inc.

Statements of Assets and Liabilities

March 31, 2023 and December 31, 2022

(Expressed in U.S. Dollars)

  March 31, 2023  December 31, 2022 
  (unaudited)    
Assets        
Investments, at fair value        
Non-Control/Non-Affiliate investments (Cost of $406,272,865 and $427,700,856, respectively) $398,843,940  $420,828,658 
Cash and cash equivalents  32,284,422   15,923,163 
Interest receivable  2,441,253   2,421,871 
Receivable from bank loan repayment  126,627   61,072 
Other assets  168,750   - 
Receivable from investments sold  -   4,415,431 
Total assets $433,864,992  $443,650,195 
         
Liabilities        
Payable for short-term borrowings(a) $8,724,062  $13,178,611 
Payable for investments purchased  1,677,500   - 
Fees due to investment advisor, net of waivers(b)  1,164,564   1,137,309 
Fee due to administrator(b)  66,250   66,250 
Accrued expenses and other liabilities  912,803   790,347 
Total liabilities $12,545,179  $15,172,517 
Commitments and contingencies(c)        
         
Net Assets        
Common stock, $0.001 par value per share, 100,000,000 shares authorized, 44,753,084 and 46,376,461 shares issued and outstanding, respectively $44,753  $46,376 
Capital in excess of par value  422,957,588   437,955,965 
Total distributable loss  (1,682,528)  (9,524,663)
Total Net Assets $421,319,813  $428,477,678 
         
Net Asset Value per Share of Common Stock at End of Period $9.41  $9.24 
         
Shares Outstanding  44,753,084   46,376,461 

    

March 31, 2023

    

December 31, 2022

(unaudited)

Assets

 

  

 

  

Investments, at fair value

 

  

 

  

Non-Control/Non-Affiliate investments (Cost of $406,272,865 and $427,700,856, respectively)

$

398,843,940

$

420,828,658

Cash and cash equivalents

 

32,284,422

 

15,923,163

Interest receivable

 

2,441,253

 

2,421,871

Receivable from bank loan repayment

 

126,627

 

61,072

Other assets

 

168,750

 

Receivable from investments sold

 

 

4,415,431

Total assets

$

433,864,992

$

443,650,195

Liabilities

 

  

 

  

Payable for short-term borrowings(a)

$

8,724,062

$

13,178,611

Payable for investments purchased

 

1,677,500

 

Fees due to investment advisor, net of waivers(b)

 

1,164,564

 

1,137,309

Fee due to administrator(b)

 

66,250

 

66,250

Accrued expenses and other liabilities

 

912,803

 

790,347

Total liabilities

$

12,545,179

$

15,172,517

Commitments and contingencies(c)

 

  

 

  

Net Assets

 

  

 

  

Common stock, $0.001 par value per share, 100,000,000 shares authorized, 44,753,084 and 46,376,461 shares issued and outstanding, respectively

$

44,753

$

46,376

Capital in excess of par value

 

422,957,588

 

437,955,965

Total distributable loss

 

(1,682,528)

 

(9,524,663)

Total Net Assets

$

421,319,813

$

428,477,678

Net Asset Value per Share of Common Stock at End of Period

$

9.41

$

9.24

Shares Outstanding

 

44,753,084

 

46,376,461

(a)

Refer to Note 8-Borrowings for additional information.

(b)

Refer to Note 4-Related Party Transactions for additional information.

(c)

Refer to Note 9-Commitments and Contingencies for additional information.

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

2

Audax Credit BDC Inc.

Statements of Operations

(Expressed in U.S. Dollars)

(unaudited)

    

Three Months Ended

    

Three Months Ended

March 31, 2023

March 31, 2022

Investment Income

 

  

 

  

Interest income

 

  

 

  

Non-Control/Non-Affiliate

$

10,011,292

$

5,389,818

Other

 

64,550

 

384

Total interest income

 

10,075,842

 

5,390,202

Other income

 

  

 

  

Non-Control/Non-Affiliate

 

62,635

 

38,118

Total income

 

10,138,477

 

5,428,320

Expenses

 

  

 

  

Base management fee(a)

$

1,108,854

$

1,038,439

Incentive fee(a)

 

1,333,105

 

426,322

Interest expense(b)

 

227,652

 

41,166

Professional fees

 

98,636

 

81,675

Other expenses

 

74,766

 

79,177

Administrative fee(a)

 

66,250

 

66,250

Directors' fees

 

63,750

 

56,250

Expenses before waivers from investment adviser and administrator

 

2,973,013

 

1,789,279

Base management fee waivers(a)

 

(388,099)

 

(363,454)

Incentive fee waivers(a)

 

(889,296)

 

(383,690)

Total expenses, net of waivers

 

1,695,618

 

1,042,135

Net Investment Income

 

8,442,859

 

4,386,185

Realized and Unrealized (Loss) Gain on Investments

 

  

 

  

Net realized (loss) gain on investments

 

(43,997)

 

225,786

Net change in unrealized depreciation on investments

 

(556,727)

 

(1,566,163)

Net realized and unrealized loss on investments

 

(600,724)

 

(1,340,377)

Net Increase in Net Assets Resulting from Operations

$

7,842,135

$

3,045,808

Basic and Diluted per Share of Common Stock:

 

  

 

  

Net investment income

$

0.19

$

0.10

Net increase in net assets resulting from operations

$

0.17

$

0.07

Weighted average shares of common stock outstanding basic and diluted

 

45,420,472

 

42,774,798

(a)

Refer to Note 4-Related Party Transactions for additional information

(b)

Refer to Note 8-Borrowings for additional information.

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


3

Audax Credit BDC Inc.

Statements of OperationsChanges in Net Assets

(Expressed in U.S. Dollars)

(unaudited)

    

Three Months Ended

    

Three Months Ended

March 31, 2023

March 31, 2022

Operations

 

  

 

  

Net investment income

$

8,442,859

$

4,386,185

Net realized (loss) gain on investments

 

(43,997)

 

225,786

Net change in unrealized depreciation on investments

 

(556,727)

 

(1,566,163)

Net increase in net assets resulting from operations

 

7,842,135

 

3,045,808

Capital Share Transactions:

 

  

 

  

Issuance of common stock

 

 

30,000,000

Repurchases of common stock

 

(15,000,000)

 

Net increase in net assets from capital share transactions

 

(15,000,000)

 

30,000,000

Net (Decrease) Increase in Net Assets

 

(7,157,865)

 

33,045,808

Net Assets, Beginning of Period

 

428,477,678

 

373,947,334

Net Assets, End of Period

$

421,319,813

$

406,993,142

  Three Months Ended  Three Months Ended 
  March 31, 2023  March 31, 2022 
Investment Income        
Interest income        
Non-Control/Non-Affiliate $10,011,292  $5,389,818 
Other  64,550   384 
Total interest income  10,075,842   5,390,202 
Other income        
Non-Control/Non-Affiliate  62,635   38,118 
Total income  10,138,477   5,428,320 
         
Expenses        
Base management fee(a) $1,108,854  $1,038,439 
Incentive fee(a)  1,333,105   426,322 
Interest expense(b)  227,652   41,166 
Professional fees  98,636   81,675 
Other expenses  74,766   79,177 
Administrative fee(a)  66,250   66,250 
Directors' fees  63,750   56,250 
Expenses before waivers from investment adviser and administrator  2,973,013   1,789,279 
Base management fee waivers(a)  (388,099)  (363,454)
Incentive fee waivers(a)  (889,296)  (383,690)
Total expenses, net of waivers  1,695,618   1,042,135 
Net Investment Income  8,442,859   4,386,185 
         
Realized and Unrealized (Loss) Gain on Investments        
Net realized (loss) gain on investments  (43,997)  225,786 
Net change in unrealized depreciation on investments  (556,727)  (1,566,163)
Net realized and unrealized loss on investments  (600,724)  (1,340,377)
         
Net Increase in Net Assets Resulting from Operations $7,842,135  $3,045,808 
         
Basic and Diluted per Share of Common Stock:        
Net investment income $0.19  $0.10 
Net increase in net assets resulting from operations $0.17  $0.07 
         
Weighted average shares of common stock outstanding basic and diluted  45,420,472   42,774,798 

(a)Refer to Note 4-Related Party Transactions for additional information
(b)Refer to Note 8-Borrowings for additional information.

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


4

Audax Credit BDC Inc.

Statements of Changes in Net AssetsCash Flows

(Expressed in U.S. Dollars)

(unaudited)

    

Three Months Ended

    

Three Months Ended

March 31, 2023

March 31, 2022

Cash flows from operating activities:

 

  

 

  

Net increase in net assets resulting from operations

$

7,842,135

$

3,045,808

Adjustments to reconcile net increase in net assets from operations to net cash provided by (used in) operating activities:

 

  

 

  

Net realized loss (gain) on investments

 

43,997

 

(225,786)

Net change in unrealized depreciation on investments

 

556,727

 

1,566,163

Accretion of original issue discount interest and payment-in-kind interest

 

(253,136)

 

(206,238)

Decrease in receivable from investments sold

 

4,415,431

 

Increase in interest receivable

 

(19,382)

 

(469,597)

Increase in receivable from bank loan repayment

 

(65,555)

 

(70,746)

Increase in other assets

 

(168,750)

 

(157,500)

Increase in accrued expenses and other liabilities

 

122,456

 

93,284

Increase in fees due to investment advisor(a)

 

27,255

 

783,868

(Increase) decrease in payable for investments purchased

 

1,677,500

 

(16,634,436)

Investment activity:

 

  

 

  

Investments purchased

 

(8,376,737)

 

(33,568,785)

Proceeds from investments sold

 

9,262,833

 

4,047,932

Repayment of bank loans

 

20,751,034

 

12,318,646

Total investment activity

 

21,637,130

 

(17,202,207)

Net cash provided by (used in) operating activities

 

35,815,808

 

(29,477,387)

Cash flows from financing activities:

 

  

 

  

Issuance of shares of common stock

 

 

30,000,000

Repurchases of shares of common stock

 

(15,000,000)

 

Repayments of short-term borrowings(b)

 

(4,454,549)

 

Net cash (used in) provided by financing activities

 

(19,454,549)

 

30,000,000

Net increase in cash and cash equivalents

 

16,361,259

 

522,613

Cash and cash equivalents:

 

  

 

  

Cash and cash equivalents, beginning of period

 

15,923,163

 

11,058,796

Cash and cash equivalents, end of period

$

32,284,422

$

11,581,409

Supplemental cash flow information Interest paid on short-term financing

$

119,524

$

41,166

Supplemental non-cash information Payment-in-kind ("PIK") interest income

$

87,506

$

61,319

(a)

Refer to Note 4-Related Party Transactions for additional information

(b)

Refer to Note 8-Borrowings for additional information.

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

  Three Months Ended
March 31, 2023
  Three Months Ended
March 31, 2022
 
Operations        
Net investment income $8,442,859  $4,386,185 
Net realized (loss) gain on investments  (43,997)  225,786 
Net change in unrealized depreciation on investments  (556,727)  (1,566,163)
Net increase in net assets resulting from operations  7,842,135   3,045,808 
         
Capital Share Transactions:        
Issuance of common stock  -   30,000,000 
Repurchases of common stock  (15,000,000)  - 
Net increase in net assets from capital share transactions  (15,000,000)  30,000,000 
         
Net (Decrease) Increase in Net Assets  (7,157,865)  33,045,808 
Net Assets, Beginning of Period  428,477,678   373,947,334 
Net Assets, End of Period $421,319,813  $406,993,142 

5

Audax Credit BDC Inc.

Schedule of Investments

As of March 31, 2023

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments (a) (b) (c) (d) (e) (f)

 

Footnote Reference

 

Investment Type

Index (Ù)

Spread

 

Interest Rate

 

Acquisition Date

 

Maturity Date

Par/Shares

 

Amortized Cost

 

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE
INVESTMENTS - (93.8%) (g) (h) (i):

���

Healthcare & Pharmaceuticals

American Vision Partners

 

(j)

 

Unitranche Initial Term Loan

 

L+

 

5.75

%  

10.94

%  

9/22/2021

 

9/30/2027

 

4,935,901

$

4,867,782

 

$

4,789,706

RevHealth

 

(j)

 

Unitranche Initial Term Loan

 

S+

 

5.75

%  

10.66

%  

7/22/2022

 

7/22/2028

 

4,259,418

 

4,180,330

 

4,168,698

Radiology Partners

 

Senior Secured Term B Loan (First Lien)

 

L+

4.25

%  

9.44

%  

6/28/2018

 

7/9/2025

 

4,215,792

 

4,360,152

 

3,793,548

Young Innovations

 

Senior Secured Initial Term Loan (First Lien)

 

L+

4.00

%  

9.19

%  

11/6/2017

 

11/7/2024

 

3,706,381

 

3,700,647

 

3,660,052

PharMedQuest

 

(j)

 

Unitranche Term A Loan

 

S+

 

5.50

%  

10.41

%  

11/6/2019

 

11/6/2024

 

3,278,398

 

3,276,101

 

3,266,993

InHealth Medical Alliance

 

Unitranche Initial Term Loan

 

S+

 

3.50

%

3.50

%  PIK

8.41

%  

6/25/2021

 

6/28/2028

 

3,526,186

 

3,497,787

 

3,173,567

InterMed

 

(j)

 

Unitranche Initial Term Loan

 

S+

 

6.50

%  

11.41

%  

12/22/2022

 

12/24/2029

 

3,023,758

 

2,938,440

 

2,963,585

Waystar

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

9.19

%  

9/19/2019

 

10/22/2026

 

2,912,443

 

2,907,844

 

2,907,448

Advancing Eyecare

 

Senior Secured Initial Term Loan

 

S+

 

5.75

%  

10.66

%  

5/27/2022

 

6/29/2029

 

2,525,310

 

2,461,363

 

2,518,997

Premise Health

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

3.50

%  

8.41

%  

8/15/2018

 

7/10/2025

 

2,253,110

 

2,256,549

 

2,247,477

Soliant

 

Senior Secured Initial Term Loan

 

L+

 

4.00

%  

9.19

%  

3/26/2021

 

3/31/2028

 

2,115,249

 

2,100,755

 

2,115,249

nThrive

 

Senior Secured Initial Loan (Second Lien)

 

L+

 

6.75

%  

11.94

%  

11/19/2021

 

12/17/2029

 

2,000,000

 

1,976,551

 

1,977,500

CPS

 

(j)

 

Unitranche Closing Date Term Loan

 

L+

 

5.50

%  

10.69

%  

5/18/2022

 

6/1/2028

 

1,943,754

 

1,939,304

 

1,943,754

Gastro Health

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.50

%  

9.69

%  

7/2/2021

 

7/3/2028

 

1,970,538

 

1,961,132

 

1,916,348

Avalign Technologies

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.50

%  

9.41

%  

12/19/2018

 

12/22/2025

 

1,915,000

 

1,913,906

 

1,881,488

Therapy Brands

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

9.19

%  

5/12/2021

 

5/18/2028

 

1,858,544

 

1,850,838

 

1,826,020

Advanced Diabetes Supply

 

Senior Secured First Incremental Term Loan

 

S+

 

5.25

%  

10.16

%  

7/13/2021

 

12/30/2027

 

1,848,968

 

1,833,633

 

1,821,233

Press Ganey

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.50

%  

8.69

%  

7/23/2019

 

7/24/2026

 

1,930,000

 

1,933,010

 

1,807,570

Upstream Rehabilitation

 

Senior Secured August 2021 Incremental Term Loan (First Lien)

 

S+

 

4.25

%  

9.16

%  

10/24/2019

 

11/20/2026

 

1,946,578

 

1,944,178

 

1,728,401

Blue Cloud

 

Senior Secured Closing Date Term Loan

 

S+

 

5.00

%  

9.91

%  

12/13/2021

 

1/21/2028

 

1,485,000

 

1,464,689

 

1,459,013

Quantum Health

 

Senior Secured Amendment No. 1 Refinancing Term Loan (First Lien)

 

L+

 

4.50

%  

9.69

%  

12/18/2020

 

12/22/2027

 

1,473,750

 

1,457,213

 

1,444,275

Mission Vet Partners

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

9.19

%  

12/15/2021

 

4/27/2028

 

1,477,500

 

1,465,148

 

1,414,706

Symplr

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.50

%  

9.41

%  

11/23/2020

 

12/22/2027

 

1,470,000

 

1,453,494

 

1,322,768

Ivy Rehab

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.75

%  

9.66

%  

3/11/2022

 

4/23/2029

 

1,280,605

 

1,257,487

 

1,264,597

Tecomet

 

Senior Secured 2017 Term Loan (First Lien)

 

L+

 

3.50

%  

8.69

%  

1/10/2019

 

5/1/2024

 

1,140,692

 

1,140,627

 

1,109,323

Solis Mammography

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.75

%  

9.94

%  

4/1/2021

 

4/17/2028

 

1,067,232

 

1,059,427

 

1,059,228

Cirtec Medical

 

Senior Secured (USD) Initial Term Loan

 

S+

 

6.25

%  

11.16

%  

1/30/2023

 

1/24/2029

 

1,000,000

 

968,055

 

992,500

Solis Mammography

 

Senior Secured Initial Term Loan (Second Lien)

 

L+

 

8.00

%  

13.19

%  

4/1/2021

 

4/16/2029

 

1,000,000

 

987,992

 

992,500

Micro Merchant Systems

 

Unitranche Initial Term Loan

 

S+

 

5.75

%  

10.66

%  

3/2/2022

 

12/14/2027

 

990,000

 

980,283

 

985,050

Wedgewood

 

Senior Secured Initial Term Loan

 

S+

 

4.25

%  

9.16

%  

2/24/2021

 

3/31/2028

 

985,000

 

976,895

 

985,000

nThrive

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

9.19

%  

11/19/2021

 

12/18/2028

 

990,000

 

986,250

 

980,100

Forefront

 

Senior Secured Closing Date Term Loan

 

S+

 

4.25

%  

9.16

%  

3/23/2022

 

4/1/2029

 

988,021

 

972,529

 

978,141

6

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of March 31, 2023

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS - (93.8%) (g) (h) (i) (Continued):

  

  

  

  

  

  

  

  

  

  

 

Healthcare & Pharmaceuticals (Continued)

Allied Benefit Systems

 

Senior Secured Initial Term B Loan

 

L+

 

4.50

%  

9.69

%  

10/21/2020

 

11/18/2026

 

977,500

$

967,671

 

$

970,169

Epic Staffing Group

 

Senior Secured Initial Term Loan

 

S+

 

6.00

%  

10.91

%  

6/27/2022

 

6/28/2029

 

819,390

 

763,167

 

817,341

UDG

 

(k)(l)

 

Senior Secured Initial Dollar Term Loan (First Lien)

 

L+

 

4.25

%  

9.44

%  

8/6/2021

 

8/19/2028

 

631,875

 

627,302

 

621,607

ImageFirst

 

Senior Secured Initial Term Loan

 

L+

 

4.50

%  

9.69

%  

4/26/2021

 

4/27/2028

 

603,239

 

600,888

 

598,714

Western Dental

 

Senior Secured 2022 Incremental Term Loan

 

L+

 

5.25

%  

10.44

%  

6/21/2022

 

8/18/2028

 

496,250

 

487,343

 

483,844

AccentCare

 

Senior Secured 2021 Term Loan (First Lien)

 

L+

 

4.00

%  

9.19

%  

6/15/2021

 

6/22/2026

 

491,250

 

491,250

 

478,969

MedRisk

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.75

%  

8.94

%  

4/1/2021

 

5/10/2028

 

492,500

 

488,477

 

475,918

Confluent Health

 

(k)

 

Senior Secured Amendment No. 1 Term Loan

 

S+

 

7.50

%  

12.41

%  

4/11/2023

 

11/28/2028

 

500,000

 

465,000

 

465,000

Press Ganey

 

(k)

 

Senior Secured 2020 Incremental Term Loan (First Lien)

 

L+

 

3.75

%  

8.94

%  

10/1/2020

 

7/24/2026

 

490,022

 

486,644

 

458,937

MyEyeDr

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.25

%  

9.44

%  

8/2/2019

 

8/31/2026

 

519,965

 

517,591

 

458,513

RMP & MedA/Rx

 

Senior Secured Term Loan

 

S+

 

4.50

%  

9.41

%  

3/22/2021

 

2/6/2025

 

459,375

 

456,092

 

454,781

RMP & MedA/Rx

 

Senior Secured Term Loan (First Lien)

 

S+

 

4.25

%  

9.16

%  

2/27/2017

 

2/6/2025

 

391,962

 

391,969

 

388,042

RevHealth

 

(j)

 

Senior Secured Revolving Credit Loan

 

S+

 

5.75

%  

10.66

%  

1/24/2023

 

7/22/2028

 

107,877

 

107,877

 

105,579

Blue Cloud

 

Senior Secured Revolving Credit Loan

 

S+

 

5.00

%  

9.91

%  

12/14/2022

 

1/21/2028

 

72,727

 

72,727

 

71,455

CPS

 

(j)

 

Senior Secured Revolving Credit Loan

 

L+

 

5.50

%  

10.69

%  

5/18/2022

 

6/1/2028

 

 

(714)

 

Ivy Rehab

 

Senior Secured Revolving Credit Loan (First Lien)

 

S+

 

4.75

%  

9.66

%  

3/11/2022

 

4/21/2028

 

 

(3,367)

 

InterMed

 

(j)

 

Senior Secured Revolving Credit Loan

 

S+

 

6.50

%  

11.41

%  

12/22/2022

 

12/24/2028

 

 

(21,598)

 

Services: Business

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

LegalShield

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.75

%  

8.94

%  

12/7/2021

 

12/15/2028

 

4,455,000

 

4,417,214

 

  

4,391,427

InnovateMR

 

(j)

 

Unitranche Initial Term Loan

 

L+

 

6.00

%  

11.19

%  

12/16/2021

 

1/20/2028

 

4,194,210

 

4,132,070

 

  

4,142,955

CoAdvantage

 

(m)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

5.00

%  

10.19

%  

9/26/2019

 

9/23/2025

 

3,860,000

 

3,841,363

 

  

3,860,000

RevSpring

 

(m)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

9.19

%  

10/5/2018

 

10/11/2025

 

3,830,000

 

3,827,927

 

  

3,830,000

Eliassen

 

 

Unitranche Initial Term Loan

 

S+

5.75

%  

10.66

%  

3/31/2022

 

4/7/2028

 

3,353,519

 

3,301,749

 

  

3,336,751

Veritext

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

3.50

%  

8.69

%  

8/14/2018

 

8/1/2025

 

3,070,998

 

3,056,927

 

  

3,063,321

Discovery Education

 

 

Unitranche Initial Term Loan (First Lien)

 

S+

5.75

%  

10.66

%  

3/25/2022

 

4/6/2029

 

2,985,000

 

2,939,820

 

  

2,970,075

Fleetwash

 

 

Senior Secured Incremental Term Loan

 

S+

4.75

%  

9.66

%  

9/25/2018

 

10/1/2024

 

2,865,844

 

2,857,427

 

  

2,844,350

The Facilities Group

 

 

Unitranche Initial Term Loan

 

L+

5.75

%  

10.94

%  

12/10/2021

 

11/30/2027

 

2,800,116

 

2,774,484

 

  

2,772,115

Industrial Services Group

 

(j)

 

Unitranche Initial Term Loan

 

S+

 

6.25

%  

11.16

%  

12/7/2022

 

12/7/2028

 

2,755,000

 

2,651,902

 

  

2,693,656

Service Logic

 

 

Senior Secured Closing Date Initial Term Loan (First Lien)

 

L+

4.00

%  

9.19

%  

10/23/2020

 

10/29/2027

 

2,529,117

 

2,510,392

 

  

2,516,471

CoolSys

 

 

Senior Secured Closing Date Initial Term Loan

 

L+

4.75

%  

9.94

%  

8/4/2021

 

8/11/2028

 

2,557,899

 

2,532,391

 

  

2,506,741

Duff & Phelps

 

(k)

 

Senior Secured Initial Dollar Term Loan (First Lien)

 

S+

 

3.75

%  

8.66

%  

3/6/2020

 

4/9/2027

 

2,431,250

 

2,417,414

 

  

2,360,343

TRC Companies

 

 

Senior Secured Initial Term Loan (Second Lien)

 

L+

6.75

%  

11.94

%  

11/19/2021

 

12/7/2029

 

2,000,000

 

1,980,000

 

  

1,980,000

ECi Software

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.75

%  

8.94

%  

9/17/2020

 

11/9/2027

 

1,955,000

 

1,948,852

 

  

1,914,434

Veregy

 

 

Senior Secured Initial Term Loan

 

L+

6.00

%  

11.19

%  

11/2/2020

 

11/3/2027

 

1,955,000

 

1,913,330

 

  

1,906,125

Liberty Group

 

(j)

 

Unitranche Initial Term Loan

 

S+

 

5.75

%  

10.66

%  

6/6/2022

 

6/9/2028

 

1,940,227

 

1,903,213

 

  

1,901,738

Mediaocean

 

(k)

 

Senior Secured Initial Term Loan

 

S+

 

3.50

%  

8.41

%  

12/9/2021

 

12/15/2028

 

1,980,000

 

1,963,267

 

  

1,880,178

InnovateMR

 

(j)

 

Unitranche First Amendment Term Loan

 

L+

 

6.50

%  

11.69

%  

12/23/2022

 

1/20/2028

 

1,881,564

 

1,824,025

 

  

1,858,571

Insight Global

 

 

Unitranche Closing Date Term Loan

 

L+

6.00

%  

11.19

%  

9/22/2021

 

9/22/2028

 

1,477,500

 

1,451,843

 

  

1,477,500

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


7

Audax Credit BDC Inc.

StatementsSchedule of Cash FlowsInvestments (Continued)

As of March 31, 2023

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (i) (Continued):

 

  

 

  

 

  

 

 

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Services: Business (Continued)

Addison Group

 

 

Senior Secured Initial Term Loan

 

S+

4.25

%  

9.16

%  

1/19/2022

 

12/29/2028

 

1,485,000

 

$

1,481,800

 

$

1,473,863

OSG Billing Services

 

 

Senior Secured Amended and Restated Term A Loan

 

S+

5.50

%  

1.50

%  PIK

10.41

%  

8/31/2022

 

6/26/2026

 

1,443,704

 

1,441,970

 

  

1,111,652

Veritext

 

 

Senior Secured Initial Term Loan (Second Lien)

 

L+

6.75

%  

11.94

%  

8/14/2018

 

7/31/2026

 

1,000,000

 

997,442

 

  

997,500

Vistage

 

 

Senior Secured Initial Term Loan

 

S+

5.25

%  

10.16

%  

7/18/2022

 

7/13/2029

 

995,000

 

969,630

 

  

990,025

trustaff

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

3.75

%  

8.94

%  

12/9/2021

 

3/6/2028

 

984,925

 

982,871

 

  

984,925

Divisions Maintenance Group

 

 

Senior Secured Term B Loan

 

L+

4.75

%  

9.94

%  

5/21/2021

 

5/27/2028

 

985,000

 

977,191

 

  

977,613

Health Management Associates

 

(k)

 

Senior Secured Term Loan A

 

S+

 

6.25

%  

11.16

%  

3/31/2023

 

3/31/2029

 

1,000,000

 

964,671

 

  

970,000

Secretariat International

 

 

Senior Secured Term Loan (First Lien)

 

L+

4.75

%  

9.94

%  

12/16/2021

 

12/29/2028

 

973,250

 

968,964

 

  

963,517

TRC Companies

 

(k)

 

Senior Secured Term Loan (First Lien)

 

L+

 

3.75

%  

8.94

%  

11/19/2021

 

12/8/2028

 

990,025

 

985,866

 

  

961,151

eResearch

 

(k)

 

Senior Secured Term Loan (First Lien)

 

L+

 

4.50

%  

9.69

%  

12/1/2020

 

2/4/2027

 

977,393

 

977,393

 

  

924,863

WIRB-Copernicus Group

 

(k)

 

Senior Secured Term Loan (First Lien)

 

L+

 

4.00

%  

9.19

%  

12/13/2019

 

1/8/2027

 

972,500

 

966,803

 

  

921,449

Diversified

 

 

Senior Secured Initial Term Loan

 

S+

5.00

%  

1.50

%  PIK

9.91

%  

4/19/2019

 

12/23/2023

 

904,750

 

903,454

 

  

875,346

Accolite

 

(k)

 

Senior Secured Initial Term Loan

 

S+

 

6.00

%  

10.91

%  

3/31/2023

 

4/10/2029

 

750,000

 

727,500

 

  

727,500

VC3

 

(j)

 

Senior Secured Delayed Draw Term Loan D

 

S+

 

 

 

5.25

%  

10.16

%  

9/16/2022

 

3/12/2027

 

742,423

694,346

713,736

Therma Holdings

 

(k)

 

Senior Secured Initial Term Loan (2021)

 

L+

 

 

 

3.75

%  

8.94

%  

12/11/2020

 

12/16/2027

 

588,852

 

587,028

 

580,755

System One

 

Senior Secured Initial Term Loan

 

S+

 

 

 

4.00

%  

8.91

%  

1/28/2021

 

3/2/2028

 

491,250

 

489,460

 

488,794

Engineering Solutions

 

(k)

 

Senior Secured Term Loan (First Lien)

 

S+

 

 

 

7.00

%  

11.91

%  

3/31/2023

 

4/1/2030

 

500,000

 

485,000

 

485,000

Industrial Services Group

 

(j)

 

Senior Secured Revolving Loan

 

S+

 

 

 

6.25

%  

11.16

%  

12/7/2022

 

12/7/2028

 

95,238

 

78,095

 

93,117

Health Management Associates

 

(k)

 

Senior Secured Revolving Loan

 

S+

 

 

 

6.25

%  

11.16

%  

3/31/2023

 

3/31/2029

 

 

(2,131)

 

VC3

 

(j)

 

Senior Secured Revolving Credit

 

S+

 

 

 

5.25

%  

10.16

%  

7/21/2022

 

3/12/2027

 

 

(2,692)

 

Discovery Education

 

Senior Secured Revolving Credit Loan (First Lien)

 

S+

 

 

 

5.75

%  

10.66

%  

3/25/2022

 

4/7/2028

 

 

(4,038)

 

Liberty Group

 

(j)

 

Senior Secured Revolving Loan

 

S+

 

 

 

5.75

%  

10.66

%  

6/6/2022

 

6/9/2028

 

 

(4,545)

 

High Tech Industries

 

 

 

  

 

 

 

  

 

  

 

 

 

  

 

  

 

  

Netsmart

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

4.00

%  

9.19

%  

9/29/2020

 

10/1/2027

 

3,430,000

 

3,419,539

 

3,394,637

Golden Source

 

(j)

 

Unitranche Initial Term Loan

 

S+

 

 

 

5.50

%  

10.41

%  

3/25/2022

 

5/12/2028

 

3,444,514

 

3,373,232

 

3,378,952

Planview

 

(k)

 

Senior Secured Closing Date Term Loan (First Lien)

 

L+

 

 

 

4.00

%  

9.19

%  

12/11/2020

 

12/17/2027

 

2,599,054

 

2,577,765

 

2,468,568

Idera

 

(k)

 

Senior Secured Term B-1 Loan (First Lien)

 

L+

 

 

 

3.75

%  

8.94

%  

6/27/2017

 

3/2/2028

 

2,566,580

 

2,566,589

 

2,455,896

Ivanti Software

 

(k)

 

Senior Secured 2021 Specified Refinancing Term Loan (First Lien)

 

L+

 

 

 

4.25

%  

9.44

%  

11/20/2020

 

12/1/2027

 

2,955,150

 

2,924,088

 

2,437,216

Flexera

 

(k)

 

Senior Secured Term B-1 Loan (First Lien)

 

L+

 

 

 

3.75

%  

8.94

%  

2/16/2020

 

3/3/2028

 

2,352,123

 

2,352,123

 

2,322,721

PracticeTek

 

(j)

 

Unitranche Initial Term Loan

 

L+

 

 

 

5.25

%  

10.44

%  

11/22/2021

 

11/23/2027

 

2,376,956

 

2,326,395

 

2,318,177

Precisely

 

(k)

 

Senior Secured Third Amendment Term Loan (First Lien)

 

L+

 

 

 

4.00

%  

9.19

%  

3/19/2021

 

4/24/2028

 

2,462,500

 

2,451,790

 

2,197,781

Barracuda

 

Senior Secured Initial Term Loan (Second Lien)

 

S+

 

 

 

7.00

%  

11.91

%  

5/17/2022

 

5/31/2030

 

2,000,000

 

1,940,000

 

1,980,000

  Three Months Ended  Three Months Ended 
  March 31, 2023  March 31, 2022 
Cash flows from operating activities:        
Net increase in net assets resulting from operations $7,842,135  $3,045,808 
Adjustments to reconcile net increase in net assets from operations to net cash provided by (used in) operating activities:        
Net realized loss (gain) on investments  43,997   (225,786)
Net change in unrealized depreciation on investments  556,727   1,566,163 
Accretion of original issue discount interest and payment-in-kind interest  (253,136)  (206,238)
Decrease in receivable from investments sold  4,415,431   - 
Increase in interest receivable  (19,382)  (469,597)
Increase in receivable from bank loan repayment  (65,555)  (70,746)
Increase in other assets  (168,750)  (157,500)
Increase in accrued expenses and other liabilities  122,456   93,284 
Increase in fees due to investment advisor(a)  27,255   783,868 
(Increase) decrease in payable for investments purchased  1,677,500   (16,634,436)
         
Investment activity:        
Investments purchased  (8,376,737)  (33,568,785)
Proceeds from investments sold  9,262,833   4,047,932 
Repayment of bank loans  20,751,034   12,318,646 
Total investment activity  21,637,130   (17,202,207)
         
Net cash provided by (used in) operating activities  35,815,808   (29,477,387)
         
Cash flows from financing activities:        
Issuance of shares of common stock  -   30,000,000 
Repurchases of shares of common stock  (15,000,000)  - 
Repayments of short-term borrowings(b)  (4,454,549)  - 
         
Net cash (used in) provided by financing activities  (19,454,549)  30,000,000 
         
Net increase in cash and cash equivalents  16,361,259   522,613 
         
Cash and cash equivalents:        
Cash and cash equivalents, beginning of period  15,923,163   11,058,796 
         
Cash and cash equivalents, end of period $32,284,422  $11,581,409 
         
Supplemental cash flow information Interest paid on short-term financing $119,524  $41,166 
         
         
Supplemental non-cash information Payment-in-kind ("PIK") interest income $87,506  $61,319 

(a)Refer to Note 4-Related Party Transactions for additional information
(b)Refer to Note 8-Borrowings for additional information.

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


8

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of March 31, 2023

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (i) (Continued):

 

  

 

  

 

  

 

 

 

  

 

  

 

  

 

  

 

  

 

  

 

  

High Tech Industries (Continued)

Sophos

 

(k) (o)

 

Senior Secured Dollar Tranche Term Loan (First Lien)

 

L+

 

 

 

3.50

%  

8.69

%  

1/16/2020

 

3/5/2027

 

1,945,027

$

1,878,025

$

1,930,440

QuickBase

 

Senior Secured Term Loan (First Lien)

 

L+

 

 

 

4.00

%  

9.19

%  

3/29/2019

 

4/2/2026

 

1,925,000

 

1,920,863

 

1,900,938

Intermedia

 

Senior Secured New Term Loan (First Lien)

 

L+

 

 

 

6.00

%  

11.19

%  

7/13/2018

 

7/21/2025

 

1,915,000

 

1,909,695

 

1,876,700

HelpSystems

 

Senior Secured Term Loan

 

S+

 

 

 

4.00

%  

8.91

%  

12/19/2019

 

11/19/2026

 

1,964,663

 

1,959,217

 

1,856,361

OEConnection

 

Senior Secured Initial Term Loan

 

L+

 

 

 

4.00

%  

9.19

%  

9/24/2019

 

9/25/2026

 

1,588,180

 

1,584,527

 

1,580,239

Bomgar

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

4.00

%  

9.19

%  

5/25/2018

 

4/18/2025

 

1,606,294

 

1,610,255

 

1,575,509

Digital Room

 

Senior Secured Closing Date Term Loan (First Lien)

 

L+

 

 

 

5.25

%  

10.44

%  

12/16/2021

 

12/21/2028

 

1,485,000

 

1,472,340

 

1,470,150

SmartBear

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

4.25

%  

9.44

%  

11/20/2020

 

3/3/2028

 

982,500

 

974,834

 

977,588

WellSky

 

Senior Secured Incremental Term B-1 Loan (First Lien)

 

S+

 

 

 

5.75

%  

10.66

%  

8/16/2022

 

3/10/2028

 

995,000

 

967,288

 

972,613

ORBCOMM

 

Senior Secured Closing Date Term Loan (First Lien)

 

L+

 

 

 

4.25

%  

9.44

%  

6/17/2021

 

9/1/2028

 

985,000

 

980,814

 

952,988

Imperva

 

Senior Secured Term Loan

 

L+

 

 

 

4.00

%  

9.19

%  

9/23/2020

 

1/12/2026

 

973,453

 

968,119

 

941,816

Infoblox

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

 

 

3.75

%  

8.66

%  

10/7/2020

 

12/1/2027

 

982,500

 

979,224

 

913,312

Barracuda

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

 

 

4.50

%  

9.41

%  

5/17/2022

 

5/31/2029

 

498,750

 

484,734

 

481,451

DigiCert

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

 

 

4.00

%  

8.91

%  

3/13/2020

 

10/16/2026

 

485,000

 

469,089

 

475,984

Cloudera

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

 

 

3.75

%  

8.66

%  

8/10/2021

 

10/8/2028

 

495,000

 

490,892

 

473,963

PracticeTek

 

(j)

 

Senior Secured Revolving Loan

 

L+

 

 

 

5.25

%  

10.44

%  

11/22/2021

 

11/23/2027

 

 

(7,156)

 

Golden Source

 

(j)

 

Senior Secured Revolving Loan

 

S+

 

 

 

5.50

%  

10.41

%  

8/22/2022

 

5/12/2028

 

 

(9,390)

 

Containers, Packaging & Glass

InMark

 

(j)

 

Unitranche Incremental Term Loan

 

S+

 

 

 

6.00

%  

10.91

%  

12/10/2021

 

12/23/2026

 

6,403,679

 

 

6,290,130

 

 

6,373,564

Transcendia

 

Senior Secured 2017 Refinancing Term Loan (First Lien)

 

L+

 

 

 

3.50

%  

8.69

%  

5/11/2017

 

5/30/2024

 

3,309,350

 

 

3,305,891

 

 

3,143,882

Brook & Whittle

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

 

 

4.00

%  

8.91

%  

12/9/2021

 

12/14/2028

 

3,123,365

 

 

3,100,691

 

 

3,123,365

Anchor Packaging

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

4.00

%  

9.19

%  

7/17/2019

 

7/18/2026

 

2,484,291

 

 

2,476,895

 

 

2,478,081

PCI

 

(k)

 

Senior Secured Term B Loan (First Lien)

 

L+

 

 

 

3.50

%  

8.69

%  

9/25/2020

 

11/30/2027

 

2,437,719

 

 

2,430,972

 

 

2,388,100

Paragon Films

 

Senior Secured Closing Date Term Loan (First Lien)

 

L+

 

 

 

5.00

%  

10.19

%  

12/15/2021

 

12/16/2028

 

1,980,000

 

 

1,961,731

 

 

1,970,100

Resource Label Group

 

Senior Secured Closing Date Initial Term Loan (First Lien)

 

L+

 

 

 

4.00

%  

9.19

%  

7/2/2021

 

7/7/2028

 

1,856,250

 

 

1,848,572

 

 

1,856,250

Intertape Polymer

 

(p)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

 

 

4.75

%  

9.66

%  

6/15/2022

 

6/28/2028

 

1,990,000

 

 

1,918,937

 

 

1,844,173

TricorBraun

 

(k)

 

Senior Secured Closing Date Initial Term Loan (First Lien)

 

L+

 

 

 

3.25

%  

8.44

%  

1/29/2021

 

3/3/2028

 

1,805,787

 

 

1,798,545

 

 

1,767,414

Potters Industries

 

Senior Secured Initial Term Loan

 

L+

 

 

 

4.00

%  

9.19

%  

11/19/2020

 

12/14/2027

 

1,470,000

 

 

1,460,195

 

 

1,458,975

Technimark

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

3.75

%  

8.94

%  

6/30/2021

 

7/7/2028

 

1,473,750

 

 

1,467,858

 

 

1,440,591

Tekni-Plex

 

(k)

 

Senior Secured Tranche B-3 Initial Term Loan

 

L+

 

 

 

4.00

%  

9.19

%  

7/29/2021

 

9/15/2028

 

1,125,363

 

 

1,123,159

 

 

1,090,724

Novolex

 

(k)

 

Senior Secured Term B Loan (First Lien)

 

S+

 

 

 

4.25

%  

9.16

%  

3/30/2022

 

4/13/2029

 

992,500

 

 

971,178

 

 

971,533

Lacerta

 

Senior Secured Term Loan

 

L+

 

 

 

5.50

%  

10.69

%  

2/8/2021

 

12/30/2026

 

977,500

 

 

969,585

 

 

967,725

Pregis

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

 

 

3.75

%  

8.66

%  

7/25/2019

 

7/31/2026

 

967,500

 

 

966,259

 

 

946,215

Applied Adhesives

 

Senior Secured Term A Loan

 

L+

 

 

 

4.50

%  

9.69

%  

3/12/2021

 

3/12/2027

 

619,917

 

 

615,285

 

 

618,367

Five Star Packaging

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

 

 

4.25

%  

9.16

%  

4/27/2022

 

5/5/2029

 

497,500

 

 

490,850

 

 

492,214

Golden West Packaging

 

Senior Secured Initial Term Loan

 

L+

 

 

 

5.25

%  

10.44

%  

11/29/2021

 

12/1/2027

 

487,500

 

 

483,377

 

 

486,281

Pregis

 

(k)

 

Senior Secured Third Amendment Refinancing Term Loan (First Lien)

 

L+

 

 

 

3.75

%  

8.94

%  

12/9/2020

 

7/31/2026

 

492,500

 

 

490,862

 

 

480,343

Applied Adhesives

 

Senior Secured Revolving Loan

 

L+

 

 

 

4.75

%  

9.94

%  

3/12/2021

 

3/12/2027

 

 

 

(616)

 

 

Portfolio Investments (a) (b) (c) (d) (e) (f) Acquisition
Date
 Par  Cost  Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS - (93.8%)(g)(h)(i):              
               
Healthcare & Pharmaceuticals              
American Vision Partners, Unitranche Initial Term Loan, 10.94% (LIBOR + 5.75%), maturity 9/30/27(j) 9/22/2021 $4,935,901  $4,867,782  $4,789,706 
RevHealth, Unitranche Initial Term Loan, 10.66% (SOFR + 5.75%), maturity 7/22/28(j) 7/22/2022  4,259,418   4,180,330   4,168,698 
Radiology Partners, Senior Secured Term B Loan (First Lien), 9.44% (LIBOR + 4.25%), maturity 7/9/25 6/28/2018  4,215,792   4,360,152   3,793,548 
Young Innovations, Senior Secured Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 11/7/24 11/6/2017  3,706,381   3,700,647   3,660,052 
PharMedQuest, Unitranche Term A Loan, 10.41% (SOFR + 5.50%), maturity 11/6/24(j) 11/6/2019  3,278,398   3,276,101   3,266,993 
InHealth Medical Alliance, Unitranche Initial Term Loan, 8.41% (SOFR + 3.50%), 3.50% PIK, maturity 6/28/28 6/25/2021  3,526,186   3,497,787   3,173,567 
InterMed, Unitranche Initial Term Loan, 11.41% (SOFR + 6.50%), maturity 12/24/29(j) 12/22/2022  3,023,758   2,938,440   2,963,585 
Waystar, Senior Secured Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 10/22/26(k) 9/19/2019  2,912,443   2,907,844   2,907,448 
Advancing Eyecare, Senior Secured Initial Term Loan, 10.66% (SOFR + 5.75%), maturity 6/29/29 5/27/2022  2,525,310   2,461,363   2,518,997 
Premise Health, Senior Secured Initial Term Loan (First Lien), 8.41% (SOFR + 3.50%), maturity 7/10/25 8/15/2018  2,253,110   2,256,549   2,247,477 
Soliant, Senior Secured Initial Term Loan, 9.19% (LIBOR + 4.00%), maturity 3/31/28 3/26/2021  2,115,249   2,100,755   2,115,249 
nThrive, Senior Secured Initial Loan (Second Lien), 11.94% (LIBOR + 6.75%), maturity 12/17/29 11/19/2021  2,000,000   1,976,551   1,977,500 
CPS, Unitranche Closing Date Term Loan, 10.69% (LIBOR + 5.50%), maturity 6/1/28(j) 5/18/2022  1,943,754   1,939,304   1,943,754 
Gastro Health, Senior Secured Initial Term Loan (First Lien), 9.69% (LIBOR + 4.50%), maturity 7/3/28 7/2/2021  1,970,538   1,961,132   1,916,348 
Avalign Technologies, Senior Secured Initial Term Loan (First Lien), 9.41% (SOFR + 4.50%), maturity 12/22/25 12/19/2018  1,915,000   1,913,906   1,881,488 
Therapy Brands, Senior Secured Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 5/18/28 5/12/2021  1,858,544   1,850,838   1,826,020 
Advanced Diabetes Supply, Senior Secured First Incremental Term Loan, 10.16% (SOFR + 5.25%), maturity 12/30/27 7/13/2021  1,848,968   1,833,633   1,821,233 
Press Ganey, Senior Secured Initial Term Loan (First Lien), 8.69% (LIBOR + 3.50%), maturity 7/24/26(k) 7/23/2019  1,930,000   1,933,010   1,807,570 
Upstream Rehabilitation, Senior Secured August 2021 Incremental Term Loan (First Lien), 9.16% (SOFR + 4.25%), maturity 11/20/26 10/24/2019  1,946,578   1,944,178   1,728,401 
Blue Cloud, Senior Secured Closing Date Term Loan, 9.91% (SOFR + 5.00%), maturity 1/21/28 12/13/2021  1,485,000   1,464,689   1,459,013 
Quantum Health, Senior Secured Amendment No. 1 Refinancing Term Loan (First Lien), 9.69% (LIBOR + 4.50%), maturity 12/22/27 12/18/2020  1,473,750   1,457,213   1,444,275 
Mission Vet Partners, Senior Secured Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 4/27/28 12/15/2021  1,477,500   1,465,148   1,414,706 
Symplr, Senior Secured Initial Term Loan (First Lien), 9.41% (SOFR + 4.50%), maturity 12/22/27 11/23/2020  1,470,000   1,453,494   1,322,768 
Ivy Rehab, Senior Secured Initial Term Loan (First Lien), 9.66% (SOFR + 4.75%), maturity 4/23/29 3/11/2022  1,280,605   1,257,487   1,264,597 
Tecomet, Senior Secured 2017 Term Loan (First Lien), 8.69% (LIBOR + 3.50%), maturity 5/1/24 1/10/2019  1,140,692   1,140,627   1,109,323 
Solis Mammography, Senior Secured Initial Term Loan (First Lien), 9.94% (LIBOR + 4.75%), maturity 4/17/28 4/1/2021  1,067,232   1,059,427   1,059,228 
Cirtec Medical, Senior Secured (USD) Initial Term Loan, 11.16% (SOFR + 6.25%), maturity 1/24/29 1/30/2023  1,000,000   968,055   992,500 
Solis Mammography, Senior Secured Initial Term Loan (Second Lien), 13.19% (LIBOR + 8.00%), maturity 4/16/29 4/1/2021  1,000,000   987,992   992,500 
Micro Merchant Systems, Unitranche Initial Term Loan, 10.66% (SOFR + 5.75%), maturity 12/14/27 3/2/2022  990,000   980,283   985,050 
Wedgewood, Senior Secured Initial Term Loan, 9.16% (SOFR + 4.25%), maturity 3/31/28 2/24/2021  985,000   976,895   985,000 
nThrive, Senior Secured Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 12/18/28 11/19/2021  990,000   986,250   980,100 
Forefront, Senior Secured Closing Date Term Loan, 9.16% (SOFR + 4.25%), maturity 4/1/29 3/23/2022  988,021   972,529   978,141 
Allied Benefit Systems, Senior Secured Initial Term B Loan, 9.69% (LIBOR + 4.50%), maturity 11/18/26 10/21/2020  977,500   967,671   970,169 
Epic Staffing Group, Senior Secured Initial Term Loan, 10.91% (SOFR + 6.00%), maturity 6/28/29 6/27/2022  819,390   763,167   817,341 
UDG, Senior Secured Initial Dollar Term Loan (First Lien), 9.44% (LIBOR + 4.25%), maturity 8/19/28(k)(l) 8/6/2021  631,875   627,302   621,607 
ImageFirst, Senior Secured Initial Term Loan, 9.69% (LIBOR + 4.50%), maturity 4/27/28 4/26/2021  603,239   600,888   598,714 
Western Dental, Senior Secured 2022 Incremental Term Loan, 10.44% (LIBOR + 5.25%), maturity 8/18/28 6/21/2022  496,250   487,343   483,844 
AccentCare, Senior Secured 2021 Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 6/22/26 6/15/2021  491,250   491,250   478,969 
MedRisk, Senior Secured Initial Term Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 5/10/28(k) 4/1/2021  492,500   488,477   475,918 
Confluent Health, Senior Secured Amendment No. 1 Term Loan, 12.41% (SOFR + 7.50%), maturity 11/28/28(k) 4/11/2023  500,000   465,000   465,000 
Press Ganey, Senior Secured 2020 Incremental Term Loan (First Lien) Retired 05/25/2021, 8.94% (LIBOR + 3.75%), maturity 7/24/26(k) 10/1/2020  490,022   486,644   458,937 
MyEyeDr, Senior Secured Initial Term Loan (First Lien), 9.44% (LIBOR + 4.25%), maturity 8/31/26(k) 8/2/2019  519,965   517,591   458,513 
RMP & MedA/Rx, Senior Secured Term Loan, 9.41% (SOFR + 4.50%), maturity 2/6/25 3/22/2021  459,375   456,092   454,781 
RMP & MedA/Rx, Senior Secured Term Loan (First Lien), 9.16% (SOFR + 4.25%), maturity 2/6/25 2/27/2017  391,962   391,969   388,042 
RevHealth, Senior Secured Revolving Loan, 10.66% (SOFR + 5.75%), maturity 7/22/28(j) 1/24/2023  107,877   107,877   105,579 
Blue Cloud, Senior Secured Revolving Loan, 9.91% (SOFR + 5.00%), maturity 1/21/28 12/14/2022  72,727   72,727   71,455 
CPS, Senior Secured Revolving Credit Loan, 10.69% (LIBOR + 5.50%), maturity 6/1/28(j) 5/18/2022  -   (714)  - 
Ivy Rehab, Senior Secured Revolving Credit Loan (First Lien), 9.66% (SOFR + 4.75%), maturity 4/21/28 3/11/2022  -   (3,367)  - 
InterMed, Senior Secured Revolving Loan, 11.41% (SOFR + 6.50%), maturity 12/24/28(j) 12/22/2022  -   (21,598)  - 
               
Services: Business              
LegalShield, Senior Secured Initial Term Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 12/15/28(k) 12/7/2021  4,455,000   4,417,214   4,391,427 
InnovateMR, Unitranche Initial Term Loan, 11.19% (LIBOR + 6.00%), maturity 1/20/28(j) 12/16/2021  4,194,210   4,132,070   4,142,955 
CoAdvantage, Senior Secured Initial Term Loan (First Lien), 10.19% (LIBOR + 5.00%), maturity 9/23/25(m) 9/26/2019  3,860,000   3,841,363   3,860,000 
RevSpring, Senior Secured Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 10/11/25(m) 10/5/2018  3,830,000   3,827,927   3,830,000 
Eliassen, Unitranche Initial Term Loan, 10.66% (SOFR + 5.75%), maturity 4/7/28 3/31/2022  3,353,519   3,301,749   3,336,751 
Veritext, Senior Secured Initial Term Loan (First Lien), 8.69% (LIBOR + 3.50%), maturity 8/1/25 8/14/2018  3,070,998   3,056,927   3,063,321 
Discovery Education, Unitranche Initial Term Loan (First Lien), 10.66% (SOFR + 5.75%), maturity 4/6/29 3/25/2022  2,985,000   2,939,820   2,970,075 
Fleetwash, Senior Secured Incremental Term Loan, 9.66% (SOFR + 4.75%), maturity 10/1/24 9/25/2018  2,865,844   2,857,427   2,844,350 
The Facilities Group, Unitranche Initial Term Loan, 10.94% (LIBOR + 5.75%), maturity 11/30/27 12/10/2021  2,800,116   2,774,484   2,772,115 
Industrial Services Group, Unitranche Initial Term Loan, 11.16% (SOFR + 6.25%), maturity 12/7/28(j) 12/7/2022  2,755,000   2,651,902   2,693,656 
Service Logic, Senior Secured Closing Date Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 10/29/27 10/23/2020  2,529,117   2,510,392   2,516,471 
CoolSys, Senior Secured Closing Date Initial Term Loan, 9.94% (LIBOR + 4.75%), maturity 8/11/28 8/4/2021  2,557,899   2,532,391   2,506,741 
Duff & Phelps, Senior Secured Initial Dollar Term Loan (First Lien), 8.66% (SOFR + 3.75%), maturity 4/9/27(k) 3/6/2020  2,431,250   2,417,414   2,360,343 
TRC Companies, Senior Secured Initial Term Loan (Second Lien), 11.94% (LIBOR + 6.75%), maturity 12/7/29 11/19/2021  2,000,000   1,980,000   1,980,000 
ECi Software, Senior Secured Initial Term Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 11/9/27(k) 9/17/2020  1,955,000   1,948,852   1,914,434 
Veregy, Senior Secured Initial Term Loan, 11.19% (LIBOR + 6.00%), maturity 11/3/27 11/2/2020  1,955,000   1,913,330   1,906,125 
Liberty Group, Unitranche Initial Term Loan, 10.66% (SOFR + 5.75%), maturity 6/9/28(j) 6/6/2022  1,940,227   1,903,213   1,901,738 
Mediaocean, Senior Secured Initial Term Loan, 8.41% (SOFR + 3.50%), maturity 12/15/28(k) 12/9/2021  1,980,000   1,963,267   1,880,178 
InnovateMR, Unitranche First Amendment Term Loan, 11.69% (LIBOR + 6.50%), maturity 1/20/28(j) 12/23/2022  1,881,564   1,824,025   1,858,571 
Insight Global, Unitranche Closing Date Term Loan, 11.19% (LIBOR + 6.00%), maturity 9/22/28 9/22/2021  1,477,500   1,451,843   1,477,500 
Addison Group, Senior Secured Initial Term Loan, 9.16% (SOFR + 4.25%), maturity 12/29/28 1/19/2022  1,485,000   1,481,800   1,473,863 
OSG Billing Services, Senior Secured Amended and Restated Term A Loan, 10.41% (SOFR + 5.50%), 1.50% PIK, maturity 6/26/26 8/31/2022  1,443,704   1,441,970   1,111,652 
Veritext, Senior Secured Initial Term Loan (Second Lien), 11.94% (LIBOR + 6.75%), maturity 7/31/26 8/14/2018  1,000,000   997,442   997,500 
Vistage, Senior Secured Initial Term Loan, 10.16% (SOFR + 5.25%), maturity 7/13/29 7/18/2022  995,000   969,630   990,025 
trustaff, Senior Secured Initial Term Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 3/6/28 12/9/2021  984,925   982,871   984,925 
Divisions Maintenance Group, Senior Secured Term B Loan, 9.94% (LIBOR + 4.75%), maturity 5/27/28 5/21/2021  985,000   977,191   977,613 
Health Management Associates, Senior Secured Term Loan A, 11.16% (SOFR + 6.25%), maturity 3/31/29(k) 3/31/2023  1,000,000   964,671   970,000 
Secretariat International, Senior Secured Initial Term Loan (First Lien), 9.94% (LIBOR + 4.75%), maturity 12/29/28 12/16/2021  973,250   968,964   963,517 
TRC Companies, Senior Secured Initial Term Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 12/8/28(k) 11/19/2021  990,025   985,866   961,151 
eResearch, Senior Secured Initial Term Loan (First Lien), 9.69% (LIBOR + 4.50%), maturity 2/4/27(k) 12/1/2020  977,393   977,393   924,863 
WIRB-Copernicus Group, Senior Secured Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 1/8/27(k) 12/13/2019  972,500   966,803   921,449 
Diversified, Senior Secured Initial Term Loan, 9.91% (SOFR + 5.00%), 1.50% PIK, maturity 12/23/23 4/19/2019  904,750   903,454   875,346 
Accolite, Senior Secured Initial Term Loan, 10.91% (SOFR + 6.00%), maturity 4/10/29(k) 3/31/2023  750,000   727,500   727,500 

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


9

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of March 31, 2023

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (i) (Continued):

 

  

 

  

 

  

 

 

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Banking, Finance, Insurance & Real Estate

Cerity Partners

 

Unitranche Initial Term Loan

 

S+

 

 

 

5.75

%  

10.66

%  

7/28/2022

 

7/27/2029

 

4,636,201

 

$

4,565,395

 

$

4,636,201

Confluence

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

 

 

3.75

%  

8.66

%  

7/22/2021

 

7/31/2028

 

3,950,000

 

 

3,931,655

 

 

3,905,563

Cherry Bekaert

 

(j)

 

Unitranche Term B Loan

 

S+

 

 

 

5.50

%  

10.41

%  

6/13/2022

 

6/30/2028

 

3,541,657

 

 

3,457,833

 

 

3,457,498

Alera

 

Unitranche 2022 Incremental Term Loan

 

S+

 

 

 

6.50

%  

11.41

%  

8/31/2022

 

9/30/2028

 

3,444,283

 

 

3,366,270

 

 

3,418,451

Ascensus

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

3.50

%  

8.69

%  

11/17/2021

 

8/2/2028

 

2,970,000

 

 

2,958,741

 

 

2,892,038

EPIC Insurance

 

Unitranche Closing Date Term Loan

 

L+

 

 

 

5.25

%  

10.44

%  

8/27/2021

 

9/29/2028

 

2,365,835

 

 

2,334,103

 

 

2,342,177

American Beacon Advisors

 

Senior Secured Tranche D Term Loan (Second Lien)

 

L+

 

 

 

8.00

%  

13.19

%  

10/31/2017

 

4/30/2025

 

2,117,133

 

 

2,121,918

 

 

2,090,669

Kestra Financial

 

(k)

 

Senior Secured Initial Term Loan

 

S+

 

 

 

4.25

%  

9.16

%  

4/29/2019

 

6/3/2026

 

1,930,000

 

 

1,920,327

 

 

1,895,019

Beta+

 

(k)

 

Senior Secured Initial Term Loan

 

S+

 

 

 

5.25

%  

10.16

%  

6/24/2022

 

7/1/2029

 

1,990,000

 

 

1,873,037

 

 

1,751,200

Orion

 

(k)

 

Senior Secured 2021 Refinancing Term Loan (First Lien)

 

L+

 

 

 

3.75

%  

8.94

%  

8/4/2020

 

9/24/2027

 

1,466,325

 

 

1,455,027

 

 

1,379,130

SIAA

 

(j)

 

Unitranche Initial Term Loan

 

L+

 

 

 

6.25

%  

11.44

%  

4/21/2021

 

4/28/2028

 

1,157,824

 

 

1,140,564

 

 

1,133,126

Advisor Group

 

(k)

 

Senior Secured Term B-1 Loan

 

L+

 

 

 

4.50

%  

9.69

%  

1/31/2020

 

7/31/2026

 

1,016,303

 

 

1,016,343

 

 

1,002,461

Community Brands

 

Unitranche Initial Term Loan

 

S+

 

 

 

5.75

%  

10.66

%  

2/23/2022

 

2/24/2028

 

990,000

 

 

970,436

 

 

980,100

LERETA

 

Senior Secured Initial Term Loan

 

L+

 

 

 

5.25

%  

10.44

%  

7/27/2021

 

7/30/2028

 

985,000

 

 

976,648

 

 

970,225

EdgeCo

 

Senior Secured Third Amendment Term Loan (First Lien)

 

L+

 

 

 

4.75

%  

9.94

%  

3/29/2022

 

6/1/2026

 

297,000

 

 

275,141

 

 

294,030

Integro

 

(q)

 

Senior Secured 2022 Refinancing Term Loan (First Lien)

 

FIXED

 

 

 

12.50

% PIK

12.25

%  

10/9/2015

 

5/8/2023

 

221,287

 

 

224,508

 

 

221,287

Cherry Bekaert

 

(j)

 

Senior Secured Revolving Credit Loan

 

S+

 

 

 

5.50

%  

10.41

%  

8/1/2022

 

6/30/2028

 

184,942

 

 

184,942

 

 

180,547

Beta+

 

(k)

 

Senior Secured Revolving Credit Loan

 

S+

 

 

 

5.25

%  

10.16

%  

6/24/2022

 

7/1/2027

 

83,715

 

 

77,499

 

 

73,670

EPIC Insurance

 

Senior Secured Revolving Loan

 

L+

 

 

 

5.25

%  

10.44

%  

8/27/2021

 

9/30/2027

 

34,796

 

 

34,526

 

 

34,448

Capital Equipment

 

  

 

  

 

  

 

 

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Tank Holding

 

(n)

 

Unitranche Initial Term Loan

 

S+

 

 

 

6.00

%  

10.91

%  

3/25/2022

 

3/31/2028

 

3,970,000

3,900,081

3,960,075

Plaskolite

 

Senior Secured 2021-1 Refinancing Term Loan (First Lien)

 

L+

 

 

 

4.00

%  

9.19

%  

12/12/2018

 

12/15/2025

 

3,831,800

 

3,800,083

 

3,606,279

Excelitas

 

Unitranche Closing Date Euro Term Loan

 

L+

 

 

 

5.75

%  

10.94

%  

6/15/2022

 

8/12/2029

 

2,969,565

 

3,013,358

 

2,947,293

Burke Porter Group

 

Senior Secured Closing Date Term Loan

 

S+

 

 

 

6.00

%  

10.91

%  

9/30/2022

 

7/29/2029

 

2,328,333

 

2,267,873

 

2,305,050

Flow Control Group

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

3.75

%  

8.94

%  

3/17/2021

 

3/31/2028

 

1,661,975

 

1,659,741

 

1,611,426

Radwell

 

Unitranche Initial Term Loan

 

S+

 

 

 

5.75

%  

10.66

%  

3/11/2022

 

4/1/2029

 

1,488,750

 

1,466,387

1,488,750

Edward Don

 

Senior Secured Initial Term Loan

 

L+

 

 

 

4.25

%  

9.44

%  

6/26/2018

 

7/2/2025

 

1,370,943

 

1,369,824

1,313,363

Therm-O-Disc

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

 

 

6.00

%  

10.91

%  

5/26/2022

 

5/31/2029

 

995,000

 

923,611

985,050

Cleaver Brooks

 

Senior Secured Initial Term Loan

 

S+

 

 

 

5.75

%  

10.66

%  

7/18/2022

 

7/31/2028

 

987,500

 

969,013

982,563

MW Industries

 

(k)

 

Senior Secured Initial Term Loan

 

S+

 

 

 

7.00

%  

11.91

%  

3/31/2023

 

3/31/2030

 

1,000,000

 

970,000

 

970,000

TriMark

 

Senior Secured Second Amendment Tranche B Loan (Super Senior Priority)

 

L+

 

 

 

3.50

%  

8.69

%  

1/31/2022

 

8/28/2024

 

961,124

 

961,124

 

624,731

Culligan

 

(k)

 

Senior Secured 2022 Refinancing Term B Loan

 

L+

 

 

 

3.75

%  

8.94

%  

6/17/2021

 

7/31/2028

 

558,281

 

555,526

 

540,489

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

10

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of March 31, 2023

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (i) (Continued):

Capital Equipment (Continued)

Infinite Electronics

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

3.25

%  

8.44

%  

2/24/2021

 

3/2/2028

 

491,269

 

$

490,379

$

490,041

Duravant

 

(k)

 

Senior Secured Incremental Amendment No. 5 Term Loan (First Lien)

 

L+

 

 

 

3.50

%  

8.69

%  

3/5/2020

 

5/19/2028

 

486,269

 

486,269

 

480,494

SPX Flow

 

(k)

 

Senior Secured Term Loan

 

S+

 

 

 

4.50

%  

9.41

%  

3/18/2022

 

4/5/2029

 

435,707

 

418,334

 

416,919

Tank Holding

 

Senior Secured Revolving Credit Loan

 

S+

 

 

 

6.00

%  

10.91

%  

3/25/2022

 

3/31/2028

 

41,846

 

38,892

 

41,742

Burke Porter Group

 

Senior Secured Revolving Credit Loan

 

S+

 

 

 

6.00

%  

10.91

%  

8/11/2022

 

7/29/2028

 

38,991

 

28,586

 

38,601

Radwell

 

Senior Secured Revolving Loan

 

S+

 

 

 

5.75

%  

10.66

%  

3/11/2022

 

4/1/2028

 

10,666

 

9,466

 

10,666

Cleaver Brooks

 

Senior Secured Revolving Loan

 

S+

 

 

 

5.75

%  

10.66

%  

7/21/2022

 

7/31/2028

 

 

(2,462)

 

Aerospace & Defense

 

 

 

  

 

 

 

  

 

  

 

 

 

  

 

  

 

  

StandardAero

 

(k)

 

Senior Secured 2020 Term B-1 Loan

 

L+

 

 

 

3.50

%  

8.69

%  

1/24/2019

 

4/6/2026

 

3,229,324

 

3,225,247

 

3,164,027

CPI International

 

Unitranche Initial Term Loan

 

S+

 

 

 

5.50

%  

10.41

%  

5/18/2022

 

10/6/2029

 

3,000,000

 

2,935,553

 

2,962,500

HDT Global

 

Senior Secured Initial Term Loan

 

L+

 

 

 

5.75

%  

10.94

%  

6/30/2021

 

7/8/2027

 

3,193,750

 

3,105,909

 

2,874,375

Whitcraft

 

Senior Secured Term Loan

 

S+

 

 

 

7.00

%  

11.91

%  

3/31/2023

 

2/15/2029

 

2,000,000

 

1,920,000

 

1,985,000

Amentum

 

(k)

 

Senior Secured Tranche 3 Term Loan (First Lien)

 

S+

 

 

 

4.00

%  

8.91

%  

2/10/2022

 

2/15/2029

 

1,985,000

 

1,975,811

 

1,945,300

Consolidated Precision Products

 

Senior Secured Initial Term Loan (Second Lien)

 

L+

 

 

 

7.75

%  

12.94

%  

5/10/2018

 

4/30/2026

 

2,000,000

 

2,005,185

 

1,920,000

StandardAero

 

(k)

 

Senior Secured 2020 Term B-2 Loan

 

L+

 

 

 

3.50

%  

8.69

%  

1/24/2019

 

4/6/2026

 

1,736,196

 

1,734,004

 

1,701,090

Peraton

 

(k)

 

Senior Secured Term B Loan (First Lien)

 

S+

 

 

 

3.75

%  

8.66

%  

2/23/2021

 

2/1/2028

 

962,112

 

958,559

 

952,092

API Technologies

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

4.25

%  

9.44

%  

1/15/2020

 

5/9/2026

 

967,337

 

949,766

 

870,603

BlueHalo

 

Unitranche Initial Term Loan

 

L+

 

 

 

6.50

%  

11.69

%  

11/17/2021

 

10/31/2025

 

492,763

 

486,502

 

481,676

Novaria Group

 

Senior Secured Initial Term Loan

 

S+

 

 

 

5.50

%  

10.41

%  

1/24/2020

 

1/27/2027

 

481,818

 

478,991

 

477,000

Consolidated Precision Products

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

3.75

%  

8.94

%  

7/18/2019

 

4/30/2025

 

481,878

 

480,642

 

457,784

BlueHalo

 

Senior Secured Revolving Loan

 

L+

 

 

 

6.50

%  

11.69

%  

11/17/2021

 

10/31/2025

 

13,314

 

11,825

 

13,015

Whitcraft

 

Senior Secured Revolving Credit Loan

 

S+

 

 

 

7.00

%  

11.91

%  

3/31/2023

 

2/15/2029

 

 

(10,714)

 

Chemicals, Plastics & Rubber

 

  

 

  

 

  

 

 

 

  

 

  

 

  

 

  

 

  

 

 

  

 

 

  

DuBois Chemicals

 

Senior Secured Term Loan (Second Lien) - 2019

 

L+

 

 

 

8.50

%  

13.69

%  

10/8/2019

 

9/30/2027

 

3,000,000

 

 

2,983,545

 

 

2,985,000

Vertellus

 

Senior Secured Initial Term Loan

 

S+

 

 

 

5.75

%  

10.66

%  

12/18/2020

 

12/22/2027

 

2,955,169

 

 

2,897,379

 

 

2,888,677

Spectrum Plastics

 

Senior Secured Closing Date Term Loan (First Lien)

 

L+

 

 

 

3.25

%  

8.44

%  

1/26/2018

 

1/31/2025

 

2,593,500

 

 

2,597,669

 

 

2,504,024

Unifrax

 

(k)

 

Senior Secured USD Term Loan (First Lien)

 

L+

 

 

 

3.75

%  

8.94

%  

11/5/2018

 

12/12/2025

 

2,394,950

 

 

2,376,629

 

 

2,178,842

USALCO

 

Unitranche Term Loan A

 

L+

 

 

 

6.00

%  

11.19

%  

10/26/2021

 

10/19/2027

 

1,975,000

 

 

1,958,531

 

 

1,960,188

Boyd Corp

 

(k)

 

Senior Secured Initial Loan (Second Lien)

 

L+

 

 

 

6.75

%  

11.94

%  

8/16/2018

 

9/6/2026

 

2,000,000

 

 

2,001,289

 

 

1,775,000

DuBois Chemicals

 

(k)

 

Senior Secured Term Loan B (First Lien)

 

L+

 

 

 

4.50

%  

9.69

%  

10/8/2019

 

9/30/2026

 

1,754,866

 

 

1,731,324

 

 

1,706,607

Ascensus Specialties

 

Senior Secured Initial Term Loan

 

S+

 

 

 

4.25

%  

9.16

%  

12/3/2021

 

6/30/2028

 

492,467

 

 

484,967

 

 

487,542

Boyd Corp

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

3.50

%  

8.69

%  

11/7/2018

 

9/6/2025

 

486,005

 

 

470,510

 

 

470,514

Polytek

 

Senior Secured Term Loan

 

S+

 

 

 

5.75

%  

10.66

%  

12/23/2020

 

9/20/2024

 

488,878

 

 

484,565

 

 

464,434

USALCO

 

Senior Secured Revolving Loan

 

L+

 

 

 

6.00

%  

11.19

%  

10/26/2021

 

10/19/2026

 

96,774

 

 

93,548

 

 

96,048

Vertellus

 

Senior Secured Revolving Credit Loan

 

S+

 

 

 

5.75

%  

10.66

%  

12/18/2020

 

12/22/2025

 

74,215

 

 

64,085

 

 

72,546

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

11

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of March 31, 2023

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments (a) (b) (c) (d) (e) (f) Acquisition
Date
 Par  Cost  Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS(h)(i) (Continued):              
               
Services: Business (continued)              
VC3, Senior Secured Delayed Draw Term Loan D, 10.16% (SOFR + 5.25%), maturity 3/12/27(j) 9/16/2022 $742,423  $694,346  $713,736 
Therma Holdings, Senior Secured Initial Term Loan (2021), 8.94% (LIBOR + 3.75%), maturity 12/16/27(k) 12/11/2020  588,852   587,028   580,755 
System One, Senior Secured Initial Term Loan, 8.91% (SOFR + 4.00%), maturity 3/2/28 1/28/2021  491,250   489,460   488,794 
Engineering Solutions, Senior Secured Term Loan (First Lien), 11.91% (SOFR + 7.00%), maturity 4/1/30(k) 3/31/2023  500,000   485,000   485,000 
Industrial Services Group, Senior Secured Revolving Loan, 11.16% (SOFR + 6.25%), maturity 12/7/28(j) 12/7/2022  95,238   78,095   93,117 
Health Management Associates, Senior Secured Revolving Loan, 11.16% (SOFR + 6.25%), maturity 3/31/29(k) 3/31/2023  -   (2,131)  - 
VC3, Senior Secured Revolving Credit, 10.16% (SOFR + 5.25%), maturity 3/12/27(j) 7/21/2022  -   (2,692)  - 
Discovery Education, Senior Secured Revolving Credit Loan (First Lien), 10.66% (SOFR + 5.75%), maturity 4/7/28 3/25/2022  -   (4,038)  - 
Liberty Group, Senior Secured Revolving Loan, 10.66% (SOFR + 5.75%), maturity 6/9/28(j) 6/6/2022  -   (4,545)  - 
               
High Tech Industries              
Netsmart, Senior Secured Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 10/1/27(k) 9/29/2020  3,430,000   3,419,539   3,394,637 
Golden Source, Unitranche Initial Term Loan, 10.41% (SOFR + 5.50%), maturity 5/12/28(j) 3/25/2022  3,444,514   3,373,232   3,378,952 
Planview, Senior Secured Closing Date Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 12/17/27(k) 12/11/2020  2,599,054   2,577,765   2,468,568 
Idera, Senior Secured Term B-1 Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 3/2/28(k) 6/27/2017  2,566,580   2,566,589   2,455,896 
Ivanti Software, Senior Secured 2021 Specified Refinancing Term Loan (First Lien), 9.44% (LIBOR + 4.25%), maturity 12/1/27(k) 11/20/2020  2,955,150   2,924,088   2,437,216 
Flexera, Senior Secured Term B-1 Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 3/3/28(k) 2/16/2020  2,352,123   2,352,123   2,322,721 
PracticeTek, Unitranche Initial Term Loan, 10.44% (LIBOR + 5.25%), maturity 11/23/27(j) 11/22/2021  2,376,956   2,326,395   2,318,177 
Precisely, Senior Secured Third Amendment Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 4/24/28(k) 3/19/2021  2,462,500   2,451,790   2,197,781 
Barracuda, Senior Secured Initial Term Loan (Second Lien), 11.91% (SOFR + 7.00%), maturity 5/31/30 5/17/2022  2,000,000   1,940,000   1,980,000 
Sophos, Senior Secured Dollar Tranche Term Loan (First Lien), 8.69% (LIBOR + 3.50%), maturity 3/5/27(k)(o) 1/16/2020  1,945,027   1,878,025   1,930,440 
QuickBase, Senior Secured Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 4/2/26 3/29/2019  1,925,000   1,920,863   1,900,938 
Intermedia, Senior Secured New Term Loan (First Lien), 11.19% (LIBOR + 6.00%), maturity 7/21/25 7/13/2018  1,915,000   1,909,695   1,876,700 
HelpSystems, Senior Secured Term Loan, 8.91% (SOFR + 4.00%), maturity 11/19/26 12/19/2019  1,964,663   1,959,217   1,856,361 
OEConnection, Senior Secured Initial Term Loan, 9.19% (LIBOR + 4.00%), maturity 9/25/26 9/24/2019  1,588,180   1,584,527   1,580,239 
Bomgar, Senior Secured Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 4/18/25(k) 5/25/2018  1,606,294   1,610,255   1,575,509 
Digital Room, Senior Secured Closing Date Term Loan (First Lien), 10.44% (LIBOR + 5.25%), maturity 12/21/28 12/16/2021  1,485,000   1,472,340   1,470,150 
SmartBear, Senior Secured Initial Term Loan (First Lien), 9.44% (LIBOR + 4.25%), maturity 3/3/28 11/20/2020  982,500   974,834   977,588 
WellSky, Senior Secured Incremental Term B-1 Loan (First Lien), 10.66% (SOFR + 5.75%), maturity 3/10/28 8/16/2022  995,000   967,288   972,613 
ORBCOMM, Senior Secured Closing Date Term Loan (First Lien), 9.44% (LIBOR + 4.25%), maturity 9/1/28 6/17/2021  985,000   980,814   952,988 
Imperva, Senior Secured Term Loan, 9.19% (LIBOR + 4.00%), maturity 1/12/26 9/23/2020  973,453   968,119   941,816 
Infoblox, Senior Secured Initial Term Loan (First Lien), 8.66% (SOFR + 3.75%), maturity 12/1/27(k) 10/7/2020  982,500   979,224   913,312 
Barracuda, Senior Secured Initial Term Loan (First Lien), 9.41% (SOFR + 4.50%), maturity 5/31/29(k) 5/17/2022  498,750   484,734   481,451 
DigiCert, Senior Secured Initial Term Loan (First Lien), 8.91% (SOFR + 4.00%), maturity 10/16/26(k) 3/13/2020  485,000   469,089   475,984 
Cloudera, Senior Secured Initial Term Loan (First Lien), 8.66% (SOFR + 3.75%), maturity 10/8/28(k) 8/10/2021  495,000   490,892   473,963 
PracticeTek, Senior Secured Revolving Loan, 10.44% (LIBOR + 5.25%), maturity 11/23/27(j) 11/22/2021  -   (7,156)  - 
Golden Source, Senior Secured Revolving Loan, 10.41% (SOFR + 5.50%), maturity 5/12/28(j) 8/22/2022  -   (9,390)  - 
               
Containers, Packaging & Glass              
InMark, Unitranche Incremental Term Loan, 10.91% (SOFR + 6.00%), maturity 12/23/26(j) 12/10/2021  6,403,679   6,290,130   6,373,564 
Transcendia, Senior Secured 2017 Refinancing Term Loan (First Lien), 8.69% (LIBOR + 3.50%), maturity 5/30/24 5/11/2017  3,309,350   3,305,891   3,143,882 
Brook & Whittle, Senior Secured Initial Term Loan (First Lien), 8.91% (SOFR + 4.00%), maturity 12/14/28 12/9/2021  3,123,365   3,100,691   3,123,365 
Anchor Packaging, Senior Secured Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 7/18/26 7/17/2019  2,484,291   2,476,895   2,478,081 
PCI, Senior Secured Term B Loan (First Lien), 8.69% (LIBOR + 3.50%), maturity 11/30/27(k) 9/25/2020  2,437,719   2,430,972   2,388,100 
Paragon Films, Senior Secured Closing Date Term Loan (First Lien), 10.19% (LIBOR + 5.00%), maturity 12/16/28 12/15/2021  1,980,000   1,961,731   1,970,100 
Resource Label Group, Senior Secured Closing Date Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 7/7/28 7/2/2021  1,856,250   1,848,572   1,856,250 
Intertape Polymer, Senior Secured Initial Term Loan (First Lien), 9.66% (SOFR + 4.75%), maturity 6/28/28(p) 6/15/2022  1,990,000   1,918,937   1,844,173 
TricorBraun, Senior Secured Closing Date Initial Term Loan (First Lien), 8.44% (LIBOR + 3.25%), maturity 3/3/28(k) 1/29/2021  1,805,787   1,798,545   1,767,414 
Potters Industries, Senior Secured Initial Term Loan, 9.19% (LIBOR + 4.00%), maturity 12/14/27 11/19/2020  1,470,000   1,460,195   1,458,975 
Technimark, Senior Secured Initial Term Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 7/7/28 6/30/2021  1,473,750   1,467,858   1,440,591 
Tekni-Plex, Senior Secured Tranche B-3 Initial Term Loan, 9.19% (LIBOR + 4.00%), maturity 9/15/28(k) 7/29/2021  1,125,363   1,123,159   1,090,724 
Novolex, Senior Secured Term B Loan (First Lien), 9.16% (SOFR + 4.25%), maturity 4/13/29(k) 3/30/2022  992,500   971,178   971,533 
Lacerta, Senior Secured Term Loan, 10.69% (LIBOR + 5.50%), maturity 12/30/26 2/8/2021  977,500   969,585   967,725 
Pregis, Senior Secured Initial Term Loan (First Lien), 8.66% (SOFR + 3.75%), maturity 7/31/26(k) 7/25/2019  967,500   966,259   946,215 
Applied Adhesives, Senior Secured Term A Loan, 9.69% (LIBOR + 4.50%), maturity 3/12/27 3/12/2021  619,917   615,285   618,367 
Five Star Packaging, Senior Secured Initial Term Loan (First Lien), 9.16% (SOFR + 4.25%), maturity 5/5/29(k) 4/27/2022  497,500   490,850   492,214 
Golden West Packaging, Senior Secured Initial Term Loan, 10.44% (LIBOR + 5.25%), maturity 12/1/27 11/29/2021  487,500   483,377   486,281 
Pregis, Senior Secured Third Amendment Refinancing Term Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 7/31/26(k) 12/9/2020  492,500   490,862   480,343 
Applied Adhesives, Senior Secured Revolving Loan, 9.94% (LIBOR + 4.75%), maturity 3/12/27 3/12/2021  -   (616)  - 
               
Banking, Finance, Insurance & Real Estate              
Cerity Partners, Unitranche Initial Term Loan, 10.66% (SOFR + 5.75%), maturity 7/27/29 7/28/2022  4,636,201   4,565,395   4,636,201 
Confluence, Senior Secured Initial Term Loan (First Lien), 8.66% (SOFR + 3.75%), maturity 7/31/28 7/22/2021  3,950,000   3,931,655   3,905,563 
Cherry Bekaert, Unitranche Term B Loan, 10.41% (SOFR + 5.50%), maturity 6/30/28(j) 6/13/2022  3,541,657   3,457,833   3,457,498 
Alera, Unitranche 2022 Incremental Term Loan, 11.41% (SOFR + 6.50%), maturity 9/30/28 8/31/2022  3,444,283   3,366,270   3,418,451 
Ascensus, Senior Secured Initial Term Loan (First Lien), 8.69% (LIBOR + 3.50%), maturity 8/2/28(k) 11/17/2021  2,970,000   2,958,741   2,892,038 
EPIC Insurance, Unitranche Closing Date Term Loan, 10.44% (LIBOR + 5.25%), maturity 9/29/28 8/27/2021  2,365,835   2,334,103   2,342,177 
American Beacon Advisors, Senior Secured Tranche D Term Loan (Second Lien), 13.19% (LIBOR + 8.00%), maturity 4/30/25 10/31/2017  2,117,133   2,121,918   2,090,669 
Kestra Financial, Senior Secured Initial Term Loan, 9.16% (SOFR + 4.25%), maturity 6/3/26(k) 4/29/2019  1,930,000   1,920,327   1,895,019 
Beta+, Senior Secured Initial Term Loan, 10.16% (SOFR + 5.25%), maturity 7/1/29(k) 6/24/2022  1,990,000   1,873,037   1,751,200 
Orion, Senior Secured 2021 Refinancing Term Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 9/24/27(k) 8/4/2020  1,466,325   1,455,027   1,379,130 
SIAA, Unitranche Initial Term Loan, 11.44% (LIBOR + 6.25%), maturity 4/28/28(j) 4/21/2021  1,157,824   1,140,564   1,133,126 
Advisor Group, Senior Secured Term B-1 Loan, 9.69% (LIBOR + 4.50%), maturity 7/31/26(k) 1/31/2020  1,016,303   1,016,343   1,002,461 
Community Brands, Unitranche Initial Term Loan, 10.66% (SOFR + 5.75%), maturity 2/24/28 2/23/2022  990,000   970,436   980,100 
LERETA, Senior Secured Initial Term Loan, 10.44% (LIBOR + 5.25%), maturity 7/30/28 7/27/2021  985,000   976,648   970,225 
EdgeCo, Senior Secured Third Amendment Term Loan (First Lien), 9.94% (LIBOR + 4.75%), maturity 6/1/26 3/29/2022  297,000   275,141   294,030 
Integro, Senior Secured 2022 Refinancing Term Loan (First Lien), 12.25% (Fixed), 12,25% PIK, maturity 5/8/23(q) 10/9/2015  221,287   224,508   221,287 
Cherry Bekaert, Senior Secured Revolving Credit Loan, 10.41% (SOFR + 5.50%), maturity 6/30/28(j) 8/1/2022  184,942   184,942   180,547 
Beta+, Senior Secured Revolving Credit Loan, 10.16% (SOFR + 5.25%), maturity 7/1/27(k) 6/24/2022  83,715   77,499   73,670 
EPIC Insurance, Senior Secured Revolving Loan, 10.44% (LIBOR + 5.25%), maturity 9/30/27 8/27/2021  34,796   34,526   34,448 

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (i) (Continued):

  

  

  

  

  

  

  

  

  

  

 

Transportation: Cargo

 

 

 

  

 

 

 

  

 

  

 

 

 

  

 

 

  

 

 

  

Evans Network

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

4.25

%  

9.44

%  

8/6/2021

 

8/19/2028

 

3,618,367

 

$

3,584,708

 

$

3,618,367

Capstone Logistics

 

Senior Secured Closing Date Term Loan (First Lien)

 

S+

 

 

 

4.75

%  

9.66

%  

11/12/2020

 

11/12/2027

 

2,090,298

 

 

2,074,714

 

 

2,090,298

AIT Worldwide Logistics

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

4.75

%  

9.94

%  

12/9/2021

 

4/6/2028

 

1,970,000

 

 

1,965,826

 

 

1,907,610

St. George Logistics

 

Senior Secured Initial Term Loan

 

S+

 

 

 

6.00

%  

10.91

%  

4/28/2022

 

3/24/2026

 

1,485,000

 

 

1,464,909

 

 

1,485,000

Worldwide Express

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

4.00

%  

9.19

%  

7/23/2021

 

7/26/2028

 

1,481,250

 

 

1,471,849

 

 

1,438,664

FLS Transportation

 

Senior Secured Term B Loan

 

L+

 

 

 

5.25

%  

10.44

%  

4/14/2022

 

12/15/2028

 

1,214,348

 

 

1,203,738

 

 

1,214,348

Omni Logistics

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

5.00

%  

10.19

%  

11/24/2021

 

12/30/2026

 

1,213,886

 

 

1,203,670

 

 

1,189,608

Magnate

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

5.50

%  

10.69

%  

3/11/2022

 

12/29/2028

 

914,734

 

 

898,080

 

 

912,448

FLS Transportation

 

Senior Secured Revolving Credit Loan

 

L+

 

 

 

5.25

%  

10.44

%  

4/14/2022

 

12/17/2027

 

 

 

(889)

 

 

Omni Logistics

 

Senior Secured Revolving Credit Loan (First Lien)

 

L+

 

 

 

5.00

%  

10.19

%  

11/24/2021

 

12/30/2025

 

 

 

(1,119)

 

 

Services: Consumer

 

 

 

  

 

 

 

  

 

  

 

 

 

  

 

 

  

 

 

  

Ned Stevens 2022-2

 

(j)

 

Unitranche Initial Term Loan

 

S+

 

 

 

6.75

%  

11.66

%  

11/1/2022

 

11/1/2029

 

3,659,828

 

 

3,532,029

 

 

3,562,810

A Place For Mom

 

Senior Secured Term Loan

 

L+

 

 

 

4.50

%  

9.69

%  

7/28/2017

 

2/10/2026

 

2,201,313

 

 

2,201,351

 

 

2,157,287

Smart Start

 

Senior Secured Term B Loan (Second Lien)

 

L+

 

 

 

7.75

%  

12.94

%  

12/10/2021

 

12/16/2029

 

2,000,000

 

 

1,969,176

 

 

1,960,000

Smart Start

 

Senior Secured Term B Loan (First Lien)

 

L+

 

 

 

4.50

%  

9.69

%  

12/10/2021

 

12/16/2028

 

1,975,000

 

 

1,964,401

 

 

1,935,500

FullBloom

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

 

 

4.25

%  

9.16

%  

12/10/2021

 

12/15/2028

 

1,488,750

 

 

1,476,045

 

 

1,473,863

Teaching Strategies

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

 

 

3.75

%  

8.66

%  

8/19/2021

 

8/31/2028

 

987,500

 

 

978,377

 

 

980,094

Spring Education

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

4.00

%  

9.19

%  

7/26/2018

 

7/30/2025

 

955,000

 

 

954,063

 

 

949,031

Aegis Sciences

 

Senior Secured Initial Term Loan (2018) (First Lien)

 

L+

 

 

 

5.50

%  

10.69

%  

5/4/2018

 

5/9/2025

 

584,823

 

 

582,311

 

 

584,823

Ned Stevens 2022-2

 

(j)

 

Senior Secured Revolving Loan

 

S+

 

 

 

6.75

%  

11.66

%  

11/1/2022

 

11/1/2029

 

 

 

(10,154)

 

 

Beverage, Food & Tobacco

 

 

 

  

 

 

 

  

 

  

 

 

 

  

 

 

  

 

 

  

Bettcher Industries

 

Senior Secured Initial Term Loan (Second Lien)

 

S+

 

 

 

7.25

%  

12.16

%  

12/13/2021

 

12/14/2029

 

2,500,000

 

 

2,478,362

 

 

2,450,000

Sovos Brands

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

3.50

%  

8.69

%  

6/8/2021

 

6/8/2028

 

2,033,001

 

 

2,033,001

 

 

2,020,295

Bettcher Industries

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

 

 

4.00

%  

8.91

%  

12/13/2021

 

12/14/2028

 

1,980,000

 

 

1,961,105

 

 

1,940,400

Hissho Sushi

 

(j)

 

Unitranche Term Loan

 

S+

 

 

 

6.00

%  

10.91

%  

4/7/2022

 

5/18/2028

 

1,843,214

 

 

1,808,000

 

 

1,843,214

Dessert Holdings

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

 

 

4.00

%  

9.19

%  

6/7/2021

 

6/9/2028

 

1,757,335

 

 

1,746,054

 

 

1,674,411

Monogram Foods

 

Senior Secured Initial Term Loan

 

L+

 

 

 

4.00

%  

9.19

%  

8/13/2021

 

8/28/2028

 

987,500

 

 

979,160

 

 

962,813

Hissho Sushi

 

(j)

 

Senior Secured Revolving Loan

 

S+

 

 

 

6.00

%  

10.91

%  

4/7/2022

 

5/18/2028

 

9,524

 

 

8,857

 

 

9,524

Construction & Building

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

A1 Garage Door Service

 

(j)

 

Unitranche Term Loan A

 

S+

 

6.50

%  

11.41

%  

12/22/2022

 

12/23/2028

 

1,875,534

 

1,811,282

 

1,831,157

Tangent

 

 

Senior Secured Closing Date Term Loan (First Lien)

 

L+

 

4.75

%  

9.94

%  

10/2/2019

 

11/30/2027

 

1,772,314

 

1,765,942

 

  

1,728,006

PlayPower

 

 

Senior Secured Initial Term Loan

 

L+

 

5.50

%  

10.69

%  

5/10/2019

 

5/8/2026

 

1,732,611

 

1,732,611

 

  

1,559,350

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


12

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of March 31, 2023

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (i) (Continued):

  

  

  

  

  

  

  

  

  

  

 

Construction & Building (Continued)

PlayCore

 

 

Senior Secured Initial Term Loan (Second Lien)

 

L+

 

7.75

%  

12.94

%  

2/7/2020

 

9/29/2025

 

1,500,000

 

$

1,482,259

 

$

1,500,000

Specialty Products & Insulation

 

 

Senior Secured Tranche B-1 Term Loan

 

S+

5.25

%  

10.16

%  

3/16/2022

 

12/21/2027

 

991,523

 

982,642

 

  

991,523

Dodge Construction Network

 

 

Senior Secured Initial Term Loan (First Lien)

 

S+

4.75

%  

9.66

%  

2/10/2022

 

2/23/2029

 

992,500

 

979,667

 

  

982,575

PlayCore

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

3.75

%  

8.94

%  

9/18/2017

 

9/30/2024

 

944,432

 

943,567

 

  

944,432

Acuren

 

(k)

 

Senior Secured Initial Term Loan

 

L+

4.00

%  

9.19

%  

1/17/2020

 

1/23/2027

 

472,540

 

471,226

 

  

471,505

Hoffman Southwest

 

 

Senior Secured Initial Term Loan

 

L+

5.50

%  

10.69

%  

5/16/2019

 

8/14/2023

 

409,984

 

412,934

 

  

407,934

A1 Garage Door Service

 

(j)

 

Senior Secured Revolving Loan

 

S+

 

6.50

%  

11.41

%  

12/22/2022

 

12/23/2028

 

 

(8,264)

 

  

 

 

 

 

 

 

 

  

Automotive

 

 

 

 

 

 

 

  

BBB Industries

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

5.25

%  

10.16

%  

6/30/2022

 

7/31/2029

 

2,992,500

 

2,715,912

 

  

2,862,326

Highline

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

4.50

%  

9.69

%  

10/29/2020

 

11/9/2027

 

2,806,364

 

2,754,762

 

  

2,757,252

Rough Country

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.50

%  

8.69

%  

7/26/2021

 

7/28/2028

 

1,955,000

 

1,950,875

 

  

1,945,225

Truck Hero

 

(k)

 

Senior Secured Initial Term Loan

 

L+

3.75

%  

8.94

%  

1/20/2021

 

1/31/2028

 

1,470,000

 

1,470,000

 

  

1,313,555

Innovative XCessories

 

 

Senior Secured Initial Term Loan

 

L+

 

4.25

%  

9.44

%  

2/27/2020

 

3/5/2027

 

784,050

 

783,233

 

  

689,964

Safe Fleet

 

 

Initial Term Loan (Second Lien)

 

S+

 

6.75

%  

11.66

%  

2/23/2022

 

2/2/2026

 

500,000

 

500,000

 

  

495,000

Wheel Pros

 

(k)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.50

%  

9.69

%  

4/23/2021

 

5/11/2028

 

492,500

 

488,897

 

  

351,901

 

 

 

 

 

 

 

  

Environmental Industries

 

 

 

 

 

 

 

  

Alliance Environmental Group

(j)

Unitranche Initial Term Loan

L+

6.00

%  

11.19

%  

12/30/2021

12/30/2027

4,105,339

4,039,973

3,933,474

Denali Water Solutions

 

 

Senior Secured Closing Date Term Loan

 

L+

4.25

%  

9.44

%  

3/18/2021

 

3/27/2028

 

1,965,000

 

1,948,165

 

  

1,930,613

Keter Environmental Services

 

 

Unitranche Closing Date Term Loan

 

L+

6.50

%  

11.69

%  

11/5/2021

 

10/29/2027

 

493,750

 

489,642

 

  

491,281

Denali Water Solutions

 

 

Senior Secured Amendment No. 3 Term Loan

 

S+

4.63

%  

9.53

%  

5/5/2022

 

3/27/2028

 

496,250

 

480,690

 

  

487,566

Alliance Environmental Group

 

(j)

 

Senior Secured Revolving Loan

 

L+

6.00

%  

11.19

%  

12/30/2021

 

12/30/2027

 

298,013

 

291,391

 

  

285,537

Keter Environmental Services

 

 

Senior Secured Revolving Loan

 

L+

6.50

%  

11.69

%  

11/5/2021

 

10/29/2027

 

27,360

 

26,585

 

  

27,223

 

 

 

 

 

 

 

 

  

Wholesale

 

 

 

 

 

 

 

  

Carlisle FoodService

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.00

%  

8.19

%  

3/16/2018

 

3/20/2025

 

3,799,805

 

3,800,418

 

  

3,761,807

 

 

 

 

 

 

 

 

  

Media: Advertising, Printing & Publishing

 

 

 

 

 

 

 

 

  

MediaRadar

(j)

Unitranche Closing Date Term A Loan

S+

6.00

%  

10.91

%  

5/23/2022

7/22/2028

1,827,852

1,785,374

1,758,020

Ansira

 

(r)

 

Unitranche Legacy Term Loan

 

FIXED

6.50

%  

6.50

%  

12/20/2016

 

12/20/2024

 

2,266,689

 

2,263,320

 

  

861,342

MediaRadar

 

(j)

 

Senior Secured Revolving Loan

 

S+

 

6.00

%  

10.91

%  

9/16/2022

 

7/22/2028

 

 

(7,407)

 

  

Hotels, Gaming & Leisure

Northstar

Senior Secured Term Loan

L+

7.25

%  

1.00

%  PIK

12.44

%  

5/8/2017

6/7/2024

1,277,015

1,277,015

1,235,512

Auto Europe

Senior Secured Initial Dollar Term Loan

S+

5.00

%  

9.91

%  

10/19/2016

10/21/2023

1,119,231

1,117,832

895,385

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

13

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of March 31, 2023

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (i) (Continued):

  

  

  

  

  

  

  

  

  

  

 

Consumer Goods: Non-durable

Augusta Sportswear

Senior Secured Initial Term Loan

S+

5.50

%  

10.41

%  

11/2/2016

4/25/2025

2,001,028

$

1,999,579

$

1,991,023

Metals & Mining

Dynatect (A&A)

Senior Secured Term B Loan

L+

4.50

%  

9.69

%  

8/16/2019

9/30/2024

1,689,870

1,680,609

1,689,870

Utilities: Electric

Systems Control

Senior Secured Initial Term Loan

L+

4.50

%  

9.69

%  

6/15/2021

3/28/2025

1,471,609

1,470,110

1,456,893

Forest Products & Paper

Loparex

Senior Secured Initial Term Loan (First Lien)

L+

4.50

%  

9.69

%  

7/29/2019

7/31/2026

1,447,500

1,439,814

1,447,500

Retail

Varsity Brands

Senior Secured Third Amendment Extended Term Loan (First Lien)

S+

5.00

%  

9.91

%  

10/17/2018

12/15/2026

954,828

957,550

942,893

StubHub

(k)

Senior Secured USD Term B Loan

S+

3.50

%  

8.41

%  

1/31/2020

2/12/2027

483,750

482,366

353,140

Utilities: Water

Aegion

Senior Secured Initial Term Loan

L+

4.75

%  

9.94

%  

4/1/2021

5/17/2028

984,998

981,133

967,761

Energy: Electricity

Franklin Energy

Senior Secured Term B Loan (First Lien)

L+

4.00

%  

9.19

%  

8/14/2019

8/14/2026

965,000

963,567

945,700

Consumer Goods: Durable

Careismatic

Senior Secured Initial Term Loan (First Lien)

L+

3.25

%  

8.44

%  

1/22/2021

1/6/2028

491,250

490,260

471,600

Total Bank Loans

$

402,971,119

$

395,014,667

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS- (0.9%) (g) (h):

Services: Business

InnovateMR

 

(j) (s) (t)

 

Class A Units

 

12/16/2021

387.31

387,311

588,723

Industrial Services Group

 

(j) (s) (u)

 

Class A Units

 

12/7/2022

238.10

 

238,095

 

239,347

Liberty Group

 

(j) (s) (v)

 

Series A-Preferred Units

 

6/6/2022

113,636.36

 

113,636

 

165,801

VC3

 

(j) (s) (w)

 

Class A Units

 

9/16/2022

7,499.03

 

29,846

 

29,846

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

14

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of March 31, 2023

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments (a) (b) (c) (d) (e) (f) Acquisition
Date
 Par  Cost  Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS(h)(i) (Continued):              
               
Capital Equipment              
Tank Holding, Unitranche Initial Term Loan, 10.91% (SOFR + 6.00%), maturity 3/31/28(n) 3/25/2022 $3,970,000  $3,900,081  $3,960,075 
Plaskolite, Senior Secured 2021-1 Refinancing Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 12/15/25 12/12/2018  3,831,800   3,800,083   3,606,279 
Excelitas, Unitranche Closing Date Euro Term Loan,  (Other + 5.75%), maturity 8/12/29 6/15/2022  2,969,565   3,013,358   2,947,293 
Burke Porter Group, Senior Secured Closing Date Term Loan, 10.91% (SOFR + 6.00%), maturity 7/29/29 9/30/2022  2,328,333   2,267,873   2,305,050 
Flow Control Group, Senior Secured Initial Term Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 3/31/28(k) 3/17/2021  1,661,975   1,659,741   1,611,426 
Radwell, Unitranche Initial Term Loan, 10.66% (SOFR + 5.75%), maturity 4/1/29 3/11/2022  1,488,750   1,466,387   1,488,750 
Edward Don, Senior Secured Initial Term Loan, 9.44% (LIBOR + 4.25%), maturity 7/2/25 6/26/2018  1,370,943   1,369,824   1,313,363 
Therm-O-Disc, Senior Secured Initial Term Loan (First Lien), 10.91% (SOFR + 6.00%), maturity 5/31/29 5/26/2022  995,000   923,611   985,050 
Cleaver Brooks, Senior Secured Initial Term Loan, 10.66% (SOFR + 5.75%), maturity 7/31/28 7/18/2022  987,500   969,013   982,563 
MW Industries, Senior Secured Initial Term Loan, 11.91% (SOFR + 7.00%), maturity 3/31/30(k) 3/31/2023  1,000,000   970,000   970,000 
TriMark, Senior Secured Second Amendment Tranche B Loan (Super Senior Priority), 8.69% (LIBOR + 3.50%), maturity 8/28/24 1/31/2022  961,124   961,124   624,731 
Culligan, Senior Secured 2022 Refinancing Term B Loan, 8.94% (LIBOR + 3.75%), maturity 7/31/28(k) 6/17/2021  558,281   555,526   540,489 
Infinite Electronics, Senior Secured Initial Term Loan (First Lien), 8.44% (LIBOR + 3.25%), maturity 3/2/28 2/24/2021  491,269   490,379   490,041 
Duravant, Senior Secured Incremental Amendment No. 5 Term Loan (First Lien), 8.69% (LIBOR + 3.50%), maturity 5/19/28(k) 3/5/2020  486,269   486,269   480,494 
SPX Flow, Senior Secured Term Loan, 9.41% (SOFR + 4.50%), maturity 4/5/29(k) 3/18/2022  435,707   418,334   416,919 
Tank Holding, Senior Secured Revolving Credit Loan, 10.91% (SOFR + 6.00%), maturity 3/31/28 3/25/2022  41,846   38,892   41,742 
Burke Porter Group, Senior Secured Revolving Credit Loan, 10.91% (SOFR + 6.00%), maturity 7/29/28 8/11/2022  38,991   28,586   38,601 
Radwell, Senior Secured Revolving Loan, 10.66% (SOFR + 5.75%), maturity 4/1/28 3/11/2022  10,666   9,466   10,666 
Cleaver Brooks, Senior Secured Revolving Loan, 10.66% (SOFR + 5.75%), maturity 7/31/28 7/21/2022  -   (2,462)  - 
               
Aerospace & Defense              
StandardAero, Senior Secured 2020 Term B-1 Loan, 8.69% (LIBOR + 3.50%), maturity 4/6/26(k) 1/24/2019  3,229,324   3,225,247   3,164,027 
CPI International, Unitranche Initial Term Loan, 10.41% (SOFR + 5.50%), maturity 10/6/29 5/18/2022  3,000,000   2,935,553   2,962,500 
HDT Global, Senior Secured Initial Term Loan, 10.94% (LIBOR + 5.75%), maturity 7/8/27 6/30/2021  3,193,750   3,105,909   2,874,375 
Whitcraft, Senior Secured Term Loan, 11.91% (SOFR + 7.00%), maturity 2/15/29 3/31/2023  2,000,000   1,920,000   1,985,000 
Amentum, Senior Secured Tranche 3 Term Loan (First Lien), 8.91% (SOFR + 4.00%), maturity 2/15/29(k) 2/10/2022  1,985,000   1,975,811   1,945,300 
Consolidated Precision Products, Senior Secured Initial Term Loan (Second Lien), 12.94% (LIBOR + 7.75%), maturity 4/30/26 5/10/2018  2,000,000   2,005,185   1,920,000 
StandardAero, Senior Secured 2020 Term B-2 Loan, 8.69% (LIBOR + 3.50%), maturity 4/6/26(k) 1/24/2019  1,736,196   1,734,004   1,701,090 
Peraton, Senior Secured Term B Loan (First Lien), 8.66% (SOFR + 3.75%), maturity 2/1/28(k) 2/23/2021  962,112   958,559   952,092 
API Technologies, Senior Secured Initial Term Loan (First Lien), 9.44% (LIBOR + 4.25%), maturity 5/9/26 1/15/2020  967,337   949,766   870,603 
BlueHalo, Unitranche Initial Term Loan, 11.69% (LIBOR + 6.50%), maturity 10/31/25 11/17/2021  492,763   486,502   481,676 
Novaria Group, Senior Secured Initial Term Loan, 10.41% (SOFR + 5.50%), maturity 1/27/27 1/24/2020  481,818   478,991   477,000 
Consolidated Precision Products, Senior Secured Initial Term Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 4/30/25 7/18/2019  481,878   480,642   457,784 
BlueHalo, Senior Secured Revolving Loan, 11.69% (LIBOR + 6.50%), maturity 10/31/25 11/17/2021  13,314   11,825   13,015 
Whitcraft, Senior Secured Revolving Credit Loan, 11.91% (SOFR + 7.00%), maturity 2/15/29 3/31/2023  -   (10,714)  - 
               
Chemicals, Plastics & Rubber              
DuBois Chemicals, Senior Secured Term Loan (Second Lien) - 2019, 13.69% (LIBOR + 8.50%), maturity 9/30/27 10/8/2019  3,000,000   2,983,545   2,985,000 
Vertellus, Senior Secured Initial Term Loan, 10.66% (SOFR + 5.75%), maturity 12/22/27 12/18/2020  2,955,169   2,897,379   2,888,677 
Spectrum Plastics, Senior Secured Closing Date Term Loan (First Lien), 8.44% (LIBOR + 3.25%), maturity 1/31/25 1/26/2018  2,593,500   2,597,669   2,504,024 
Unifrax, Senior Secured USD Term Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 12/12/25(k) 11/5/2018  2,394,950   2,376,629   2,178,842 
USALCO, Unitranche Term Loan A, 11.19% (LIBOR + 6.00%), maturity 10/19/27 10/26/2021  1,975,000   1,958,531   1,960,188 
Boyd Corp, Senior Secured Initial Loan (Second Lien), 11.94% (LIBOR + 6.75%), maturity 9/6/26(k) 8/16/2018  2,000,000   2,001,289   1,775,000 
DuBois Chemicals, Senior Secured Term Loan B (First Lien), 9.69% (LIBOR + 4.50%), maturity 9/30/26(k) 10/8/2019  1,754,866   1,731,324   1,706,607 
Ascensus Specialties, Senior Secured Initial Term Loan, 9.16% (SOFR + 4.25%), maturity 6/30/28 12/3/2021  492,467   484,967   487,542 
Boyd Corp, Senior Secured Initial Term Loan (First Lien), 8.69% (LIBOR + 3.50%), maturity 9/6/25(k) 11/7/2018  486,005   470,510   470,514 
Polytek, Senior Secured Term Loan, 10.66% (SOFR + 5.75%), maturity 9/20/24 12/23/2020  488,878   484,565   464,434 
USALCO, Senior Secured Revolving Loan, 11.19% (LIBOR + 6.00%), maturity 10/19/26 10/26/2021  96,774   93,548   96,048 
Vertellus, Senior Secured Revolving Credit Loan, 10.66% (SOFR + 5.75%), maturity 12/22/25 12/18/2020  74,215   64,085   72,546 
               
Transportation: Cargo              
Evans Network, Senior Secured Initial Term Loan (First Lien), 9.44% (LIBOR + 4.25%), maturity 8/19/28 8/6/2021  3,618,367   3,584,708   3,618,367 
Capstone Logistics, Senior Secured Closing Date Term Loan (First Lien), 9.66% (SOFR + 4.75%), maturity 11/12/27 11/12/2020  2,090,298   2,074,714   2,090,298 
AIT Worldwide Logistics, Senior Secured Initial Term Loan (First Lien), 9.94% (LIBOR + 4.75%), maturity 4/6/28(k) 12/9/2021  1,970,000   1,965,826   1,907,610 
St. George Logistics, Senior Secured Initial Term Loan, 10.91% (SOFR + 6.00%), maturity 3/24/26 4/28/2022  1,485,000   1,464,909   1,485,000 
Worldwide Express, Senior Secured Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 7/26/28(k) 7/23/2021  1,481,250   1,471,849   1,438,664 
FLS Transportation, Senior Secured Term B Loan, 10.44% (LIBOR + 5.25%), maturity 12/15/28 4/14/2022  1,214,348   1,203,738   1,214,348 
Omni Logistics, Senior Secured Initial Term Loan (First Lien), 10.19% (LIBOR + 5.00%), maturity 12/30/26 11/24/2021  1,213,886   1,203,670   1,189,608 
Magnate, Senior Secured Initial Term Loan (First Lien), 10.69% (LIBOR + 5.50%), maturity 12/29/28 3/11/2022  914,734   898,080   912,448 
FLS Transportation, Senior Secured Revolving Credit Loan, 10.44% (LIBOR + 5.25%), maturity 12/17/27 4/14/2022  -   (889)  - 
Omni Logistics, Senior Secured Revolving Credit Loan (First Lien), 10.19% (LIBOR + 5.00%), maturity 12/30/25 11/24/2021  -   (1,119)  - 
               
Services: Consumer              
Ned Stevens 2022-2, Unitranche Initial Term Loan, 11.66% (SOFR + 6.75%), maturity 11/1/29(j) 11/1/2022  3,659,828   3,532,029   3,562,810 
A Place For Mom, Senior Secured Term Loan, 9.69% (LIBOR + 4.50%), maturity 2/10/26 7/28/2017  2,201,313   2,201,351   2,157,287 
Smart Start, Senior Secured Term B Loan (Second Lien), 12.94% (LIBOR + 7.75%), maturity 12/16/29 12/10/2021  2,000,000   1,969,176   1,960,000 
Smart Start, Senior Secured Term B Loan (First Lien), 9.69% (LIBOR + 4.50%), maturity 12/16/28 12/10/2021  1,975,000   1,964,401   1,935,500 
FullBloom, Senior Secured Initial Term Loan (First Lien), 9.16% (SOFR + 4.25%), maturity 12/15/28 12/10/2021  1,488,750   1,476,045   1,473,863 
Teaching Strategies, Senior Secured Initial Term Loan (First Lien), 8.66% (SOFR + 3.75%), maturity 8/31/28 8/19/2021  987,500   978,377   980,094 
Spring Education, Senior Secured Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 7/30/25(k) 7/26/2018  955,000   954,063   949,031 
Aegis Sciences, Senior Secured Initial Term Loan (2018) (First Lien), 10.69% (LIBOR + 5.50%), maturity 5/9/25 5/4/2018  584,823   582,311   584,823 
Ned Stevens 2022-2, Senior Secured Revolving Loan, 11.66% (SOFR + 6.75%), maturity 11/1/29(j) 11/1/2022  -   (10,154)  - 
               
Beverage, Food & Tobacco              
Bettcher Industries, Senior Secured Initial Term Loan (Second Lien), 12.16% (SOFR + 7.25%), maturity 12/14/29 12/13/2021  2,500,000   2,478,362   2,450,000 
Sovos Brands, Senior Secured Initial Term Loan (First Lien), 8.69% (LIBOR + 3.50%), maturity 6/8/28(k) 6/8/2021  2,033,001   2,033,001   2,020,295 
Bettcher Industries, Senior Secured Initial Term Loan (First Lien), 8.91% (SOFR + 4.00%), maturity 12/14/28 12/13/2021  1,980,000   1,961,105   1,940,400 
Hissho Sushi, Unitranche Term Loan, 10.91% (SOFR + 6.00%), maturity 5/18/28(j) 4/7/2022  1,843,214   1,808,000   1,843,214 
Dessert Holdings, Senior Secured Initial Term Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 6/9/28 6/7/2021  1,757,335   1,746,054   1,674,411 
Monogram Foods, Senior Secured Initial Term Loan, 9.19% (LIBOR + 4.00%), maturity 8/28/28 8/13/2021  987,500   979,160   962,813 
Hissho Sushi, Senior Secured Revolving Credit Loan, 10.91% (SOFR + 6.00%), maturity 5/18/28(j) 4/7/2022  9,524   8,857   9,524 

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

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS- (0.9%) (g) (h) (Continued):

High Tech Industries

PracticeTek

 

(j) (s) (x)

 

Class A Units

 

11/22/2021

344,833.35

$

377,255

$

354,188

Golden Source

 

(j) (s) (y)

 

Class A Units

 

3/25/2022

117,370.89

 

117,371

 

248,067

Healthcare & Pharmaceuticals

InterMed

 

(j) (s) (z)

 

Class A Units

 

12/22/2022

2,484.00

 

248,380

 

238,705

RevHealth

 

(j) (s) (aa)

 

Class A-1 Units

 

7/22/2022

20,547.95

 

205,479

 

210,811

Ivy Rehab

 

(j) (s) (ab)

 

Class A Units

 

3/11/2022

100.00

 

100,000

 

74,010

Beverage, Food & Tobacco

Hissho Sushi

 

(j) (s) (ac)

 

Class A Units

 

4/7/2022

25,000.00

 

250,000

 

350,485

Environmental Industries

Alliance Environmental Group

 

(j) (s) (ad)

 

A-1 Preferred Units

 

9/30/2019

331.13

 

331,126

 

303,067

Chemicals, Plastics & Rubber

Vertellus

 

(j) (s) (ae)

 

Series A Units

 

12/22/2020

1,651.00

 

165,138

 

283,916

Construction & Building

A1 Garage Door Service

 

(j) (s) (af)

 

Class A Common Units

 

12/22/2022

272.73

 

272,727

 

274,638

Services: Consumer

Ned Stevens

 

(j) (s) (ag)

 

Class B Common Units

 

11/1/2022

261.44

 

261,438

 

226,201

Banking, Finance, Insurance & Real Estate

Cherry Bekaert

 

(j) (s) (ah)

 

Class A Units

 

6/30/2022

129,870.13

 

129,870

 

167,153

Media: Advertising, Printing & Publishing

 

  

 

  

 

  

 

  

 

  

 

  

 

  

MediaRadar

 

(j) (s) (ai)

 

Class A-1 Units

 

9/16/2022

 

  

 

74,074.07

 

74,074

 

74,315

Total Equity and Preferred Shares

 

 

  

 

 

 

  

  

  

 

  

 

  

$

3,301,746

$

3,829,273

Total Portfolio Investments (aj)

 

  

 

  

 

  

 

 

 

  

  

  

 

  

 

  

$

406,272,865

$

398,843,940


Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of March 31, 2023

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments (a) (b) (c) (d) (e) (f) Acquisition
Date
 Par  Cost  Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS(h)(i) (Continued):              
               
Construction & Building              
A1 Garage Door Service, Unitranche Term Loan A, 11.41% (SOFR + 6.50%), maturity 12/23/28(j) 12/22/2022 $1,875,534  $1,811,282  $1,831,157 
Tangent, Senior Secured Closing Date Term Loan (First Lien), 9.94% (LIBOR + 4.75%), maturity 11/30/27 10/2/2019  1,772,314   1,765,942   1,728,006 
PlayPower, Senior Secured Initial Term Loan, 10.69% (LIBOR + 5.50%), maturity 5/8/26 5/10/2019  1,732,611   1,732,611   1,559,350 
PlayCore, Senior Secured Initial Term Loan (Second Lien), 12.94% (LIBOR + 7.75%), maturity 9/29/25 2/7/2020  1,500,000   1,482,259   1,500,000 
Specialty Products & Insulation, Senior Secured Tranche B-1 Term Loan, 10.16% (SOFR + 5.25%), maturity 12/21/27 3/16/2022  991,523   982,642   991,523 
Dodge Construction Network, Senior Secured Initial Term Loan (First Lien), 9.66% (SOFR + 4.75%), maturity 2/23/29 2/10/2022  992,500   979,667   982,575 
PlayCore, Senior Secured Initial Term Loan (First Lien), 8.94% (LIBOR + 3.75%), maturity 9/30/24 9/18/2017  944,432   943,567   944,432 
Acuren, Senior Secured Initial Term Loan, 9.19% (LIBOR + 4.00%), maturity 1/23/27(k) 1/17/2020  472,540   471,226   471,505 
Hoffman Southwest, Senior Secured Initial Term Loan, 10.69% (LIBOR + 5.50%), maturity 8/14/23 5/16/2019  409,984   412,934   407,934 
A1 Garage Door Service, Senior Secured Revolving Loan, 11.41% (SOFR + 6.50%), maturity 12/23/28(j) 12/22/2022  -   (8,264)  - 
               
Automotive              
BBB Industries, Senior Secured Initial Term Loan (First Lien), 10.16% (SOFR + 5.25%), maturity 7/31/29(k) 6/30/2022  2,992,500   2,715,912   2,862,326 
Highline, Senior Secured Initial Term Loan (First Lien), 9.69% (LIBOR + 4.50%), maturity 11/9/27 10/29/2020  2,806,364   2,754,762   2,757,252 
Rough Country, Senior Secured Initial Term Loan (First Lien), 8.69% (LIBOR + 3.50%), maturity 7/28/28 7/26/2021  1,955,000   1,950,875   1,945,225 
Truck Hero, Senior Secured Initial Term Loan, 8.94% (LIBOR + 3.75%), maturity 1/31/28(k) 1/20/2021  1,470,000   1,470,000   1,313,555 
Innovative XCessories, Senior Secured Initial Term Loan, 9.44% (LIBOR + 4.25%), maturity 3/5/27 2/27/2020  784,050   783,233   689,964 
Safe Fleet, Senior Secured Initial Term Loan (Second Lien), 11.66% (SOFR + 6.75%), maturity 2/2/26 2/23/2022  500,000   500,000   495,000 
Wheel Pros, Senior Secured Initial Term Loan (First Lien), 9.69% (LIBOR + 4.50%), maturity 5/11/28(k) 4/23/2021  492,500   488,897   351,901 
               
Environmental Industries              
Alliance Environmental Group, Unitranche Initial Term Loan, 11.19% (LIBOR + 6.00%), maturity 12/30/27(j) 12/30/2021  4,105,339   4,039,973   3,933,474 
Denali Water Solutions, Senior Secured Closing Date Term Loan, 9.44% (LIBOR + 4.25%), maturity 3/27/28 3/18/2021  1,965,000   1,948,165   1,930,613 
Keter Environmental Services, Unitranche Closing Date Term Loan, 11.69% (LIBOR + 6.50%), maturity 10/29/27 11/5/2021  493,750   489,642   491,281 
Denali Water Solutions, Senior Secured Amendment No. 3 Term Loan, 9.53% (SOFR + 4.63%), maturity 3/27/28 5/5/2022  496,250   480,690   487,566 
Alliance Environmental Group, Senior Secured Revolving Loan, 11.19% (LIBOR + 6.00%), maturity 12/30/27(j) 12/30/2021  298,013   291,391   285,537 
Keter Environmental Services, Senior Secured Revolving Loan, 11.69% (LIBOR + 6.50%), maturity 10/29/27 11/5/2021  27,360   26,585   27,223 
               
Wholesale              
Carlisle FoodService, Senior Secured Initial Term Loan (First Lien), 8.19% (LIBOR + 3.00%), maturity 3/20/25 3/16/2018  3,799,805   3,800,418   3,761,807 
               
Media: Advertising, Printing & Publishing              
MediaRadar, Unitranche Closing Date Term A Loan, 10.91% (SOFR + 6.00%), maturity 7/22/28(j) 5/23/2022  1,827,852   1,785,374   1,758,020 
Ansira, Unitranche Legacy Term Loan, 6.50% (Fixed), maturity 12/20/24(r) 12/20/2016  2,266,689   2,263,320   861,342 
MediaRadar, Senior Secured Revolving Loan, 10.91% (SOFR + 6.00%), maturity 7/22/28(j) 9/16/2022  -   (7,407)  - 
               
Hotels, Gaming & Leisure              
Northstar, Senior Secured Term Loan, 12.44% (LIBOR + 7.25%), 1.00% PIK, maturity 6/7/24 5/8/2017  1,277,015   1,277,015   1,235,512 
Auto Europe, Senior Secured Initial Dollar Term Loan, 9.91% (SOFR + 5.00%), maturity 10/21/23 10/19/2016  1,119,231   1,117,832   895,385 
               
Consumer Goods: Non-durable              
Augusta Sportswear, Senior Secured Initial Term Loan, 10.41% (SOFR + 5.50%), maturity 4/25/25 11/2/2016  2,001,028   1,999,579   1,991,023 
               
Metals & Mining              
Dynatect (A&A), Senior Secured Term B Loan, 9.69% (LIBOR + 4.50%), maturity 9/30/24 8/16/2019  1,689,870   1,680,609   1,689,870 
               
Utilities: Electric              
Systems Control, Senior Secured Initial Term Loan, 9.69% (LIBOR + 4.50%), maturity 3/28/25 6/15/2021  1,471,609   1,470,110   1,456,893 
               
Forest Products & Paper              
Loparex, Senior Secured Initial Term Loan (First Lien), 9.69% (LIBOR + 4.50%), maturity 7/31/26 7/29/2019  1,447,500   1,439,814   1,447,500 
               
Retail              
Varsity Brands, Senior Secured Third Amendment Extended Term Loan (First Lien), 9.91% (SOFR + 5.00%), maturity 12/15/26 10/17/2018  954,828   957,550   942,893 
StubHub, Senior Secured USD Term B Loan, 8.41% (SOFR + 3.50%), maturity 2/12/27(k) 1/31/2020  483,750   482,366   353,140 
               
Utilities: Water              
Aegion, Senior Secured Initial Term Loan, 9.94% (LIBOR + 4.75%), maturity 5/17/28 4/1/2021  984,998   981,133   967,761 
               
Energy: Electricity              
Franklin Energy, Senior Secured Term B Loan (First Lien), 9.19% (LIBOR + 4.00%), maturity 8/14/26 8/14/2019  965,000   963,567   945,700 
               
Consumer Goods: Durable              
Careismatic, Senior Secured Initial Term Loan (First Lien), 8.44% (LIBOR + 3.25%), maturity 1/6/28 1/22/2021  491,250   490,260   471,600 
               
Total Bank Loans       $402,971,119  $395,014,667 

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


Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of March 31, 2023

(Expressed in U.S. Dollars)

(unaudited)

Portfolio Investments (a) (b) (c) (d) (e) (f) Acquisition
Date
 Par Cost  Value 
EQUITY AND PREFERRED SHARES:  NON-CONTROL/NON-AFFILIATE INVESTMENTS- (0.9%)(g)(h):            
             
Services: Business            
InnovateMR, Class A Units (387.31 Class A Units) (j) (s) (t) 12/16/2021   $387,311  $588,723 
Industrial Services Group, Class A Units (238.10 Class A Units) (j) (s) (u) 12/7/2022    238,095   239,347 
Liberty Group, Series A-Preferred Units (113,636.36 Series A-Preferred Units) (j) (s) (v) 6/6/2022    113,636   165,801 
VC3, Class A Units (7,499.03 Class A Units) (j) (s) (w) 9/16/2022    29,846   29,846 
             
High Tech Industries            
PracticeTek, Class A Units (344,833.35 Class A Units) (j) (s) (x) 11/22/2021    377,255   354,188 
Golden Source, Class A Units (117,370.89 Class A Units) (j) (s) (y) 3/25/2022    117,371   248,067 
             
Healthcare & Pharmaceuticals            
InterMed, Class A Units (2,484.00 Class A Units) (j) (s) (z) 12/22/2022    248,380   238,705 
RevHealth, Class A-1 Units (20,547.95 Class A-1 Units) (j) (s) (aa) 7/22/2022    205,479   210,811 
Ivy Rehab, Class A Units (100.00 Class A Units) (j) (s) (ab) 3/11/2022    100,000   74,010 
             
Beverage, Food & Tobacco            
Hissho Sushi, Class A Units (25,000.00 Class A Units) (j) (s) (ac) 4/7/2022    250,000   350,485 
             
Environmental Industries            
Alliance Environmental Group, A-1 Preferred Units (331.13 A-1 Preferred Units) (j) (s) (ad) 9/30/2019    331,126   303,067 
             
Chemicals, Plastics & Rubber 12/22/2020    165,138   283,916 
Vertellus, Series A Units (1,651.00 Series A Units) (j) (s) (ae)            
             
Construction & Building            
A1 Garage Door Service, Class A Common Units (272.73 Class A Common Units) (j) (s) (af) 12/22/2022    272,727   274,638 
             
Services: Consumer            
Ned Stevens, Class B Common Units (261.44 Class B Common Units) (j) (s) (ag) 11/1/2022    261,438   226,201 
             
Banking, Finance, Insurance & Real Estate            
Cherry Bekaert, Class A Units (129,870.13 Class A Units) (j) (s) (ah) 6/30/2022    129,870   167,153 
             
Media: Advertising, Printing & Publishing            
MediaRadar, Class A-1 Units (74,074.07 Class A-1 Units) (j) (s) (ai) 9/16/2022    74,074   74,315 
             
Total Equity and Preferred Shares     $3,301,746  $3,829,273 
             
Total Portfolio Investments (aj)     $406,272,865  $398,843,940 

(a)

(Ù)

The majority of the investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) or Secured Overnight Financing Rate (“SOFR” or “S”).

(a)

All companies are located in the United States of America, unless otherwise noted.

(b)

Interest rate percentages represent actual interest rates as of March 31, 2023, which are indexed to the noted reference rate. The referenced rates are subject to interest floors which can vary based on contractual agreements with the borrower.

(c)

All loans are income-producing, unless otherwise noted.

(d)

All investments are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the "1940 Act") unless otherwise noted.

(e)

All investments are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act.

(f)

Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the FASB Accounting Standard Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.

(g)

Percentages are calculated using fair value of investments over net assets.

15

(h)

As defined in 1940 Act, the Company is not deemed to be an “Affiliated Person” of or “Control” this portfolio company because it neither owns 5% or more of the portfolio company’s outstanding voting securities nor has the power to exercise control over the management or policies of such portfolio company (including through a management agreement.

(i)

The negative cost, if applicable, is the result of the capitalized discount being greater than the principal amount outstanding on the unfunded loan commitment.

(j)

Three of our affiliated funds, Audax Direct Lending Solutions Fund - A, L.P., Audax Direct Lending Solutions Fund - C, L.P., and Audax Direct Lending Solutions Fund - D, L.P., co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.

(k)

Investment was valued using Level 2 inputs within the ASC 820 fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.

(l)

The Company headquarters for UDG is located in Ireland.

(m)

The Company purchased the investment, pursuant to a repurchase agreement with a rate of 1.9626 basis points per day with Macquarie US Trading LLC, dated June 21, 2022, due June 16, 2023.

(n)

The Company purchased the investment, pursuant to a repurchase agreement with a rate of 1.9530 basis points per day with Macquarie US Trading LLC, dated July 19, 2022, due June 12, 2023.

(o)

The Company headquarters for Sophos is located in United Kingdom.

(p)

The Company headquarters for Intertape Polymer is located in Canada.

(q)

The Company headquarters for Integro is located in United Kingdom.

(r)

Investment is on non-accrual

(s)

Investment is non-income producing.

(t)

Represents an investment in APD INN Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(u)

Represents an investment in APD ISG Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(v)

Represents an investment in APD TLG Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(w)

Represents an investment in APD VC3 Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(x)

Represents an investment in APD Ptek Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(y)

Represents an investment in APD Gol Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(z)

Represents an investment in APD IMD Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(aa)

Represents an investment in APD RH Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(ab)

Represents an investment in APD IVY Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(ac)

Represents an investment in APD Sush Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(ad)

Represents an investment in APD AEG Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(ae)

Represents an investment in ADP VERT Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(af)

Represents an investment in APD GAR Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(ag)

Represents an investment in APD NS Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(ah)

Represents an investment in APD CBA Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(ai)

Represents an investment in APD MDR Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.

(aj)

At March 31, 2023, the cost of investments for income tax purposes was $406,272,865, the gross unrealized depreciation for federal tax purposes was $9,776,480, the gross unrealized appreciation for federal income tax purposes was $2,347,555, and the net unrealized depreciation was $7,428,925.

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

16

Audax Credit BDC Inc.

Schedule of Investments

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS - (97.4%) (g) (h):

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

Healthcare & Pharmaceuticals

 

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 

American Vision Partners

 

(i)

 

Unitranche Initial Term Loan

 

L+

 

5.75

%  

10.52

%  

9/22/2021

 

9/30/2027

 

4,948,401

 

$

4,879,828

 

$

4,856,470

RevHealth

(i)

 

Unitranche Initial Term Loan

 

S+

 

5.75

%  

10.34

%  

7/22/2022

 

7/22/2028

 

4,270,120

 

4,188,380

 

4,150,791

Radiology Partners

 

Senior Secured Term B Loan (First Lien)

 

L+

 

4.25

%  

9.02

%  

6/28/2018

 

7/9/2025

 

4,215,792

 

4,360,152

 

3,863,383

Young Innovations

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

11/6/2017

 

11/7/2024

 

3,716,210

 

3,710,302

 

3,674,403

PharMedQuest

 

(i)

 

Unitranche Term A Loan

 

S+

 

5.50

%  

10.09

%  

11/6/2019

 

11/6/2024

 

3,280,898

 

3,270,149

 

3,273,829

Zest Dental

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.50

%  

8.27

%  

5/30/2018

 

3/14/2025

 

3,222,954

 

3,231,080

 

3,222,954

InHealth Medical Alliance

 

Unitranche Initial Term Loan

 

S+

 

3.50

%  

3.50

%  PIK

8.09

%  

6/25/2021

 

6/28/2028

 

3,473,575

 

3,444,004

 

3,126,218

InterMed

 

(i) (j)

 

Unitranche Initial Term Loan

 

S+

 

6.50

%  

11.09

%  

12/22/2022

 

12/24/2029

 

3,023,758

 

2,937,365

 

2,948,164

Waystar

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

9/19/2019

 

10/22/2026

 

2,919,950

 

2,914,826

 

2,905,350

Advancing Eyecare

 

Senior Secured Initial Term Loan

 

S+

 

5.75

%  

10.34

%  

5/27/2022

 

6/29/2029

 

2,531,655

 

2,465,757

 

2,525,326

Premise Health

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

3.50

%  

8.09

%  

8/15/2018

 

7/10/2025

 

2,259,008

 

2,262,783

 

2,253,361

Soliant

 

 

Senior Secured Initial Term Loan

 

L+

 

4.00

%  

8.77

%  

3/26/2021

 

3/31/2028

 

2,115,249

 

2,100,146

 

2,115,249

nThrive

 

 

Senior Secured Initial Loan (Second Lien)

 

L+

 

6.75

%  

11.52

%  

11/19/2021

 

12/17/2029

 

2,000,000

 

1,975,615

 

1,977,500

CPS

(i)

 

Unitranche Closing Date Term Loan

 

L+

 

5.75

%  

10.52

%  

5/18/2022

 

6/1/2028

 

1,953,546

 

1,948,936

 

1,945,105

Gastro Health

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.50

%  

9.27

%  

7/2/2021

 

7/3/2028

 

1,974,288

 

1,964,641

 

1,919,995

Upstream Rehabilitation

 

Senior Secured August 2021 Incremental Term Loan (First Lien)

 

S+

 

4.25

%  

8.84

%  

10/24/2019

 

11/20/2026

 

1,951,531

 

1,949,032

 

1,917,379

Avalign Technologies

 

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.50

%  

9.09

%  

12/19/2018

 

12/22/2025

 

1,920,000

 

1,916,944

 

1,886,400

Therapy Brands

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

5/12/2021

 

5/18/2028

 

1,863,262

 

1,855,208

 

1,835,313

Advanced Diabetes Supply

 

 

Senior Secured First Incremental Term Loan

 

S+

 

5.25

%  

9.84

%  

7/13/2021

 

12/30/2027

 

1,853,637

 

1,837,653

 

1,835,101

Press Ganey

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.50

%  

8.27

%  

7/23/2019

 

7/24/2026

 

1,935,000

 

1,938,010

 

1,778,391

Blue Cloud

Senior Secured Closing Date Term Loan

S+

5.00

%  

9.59

%  

12/13/2021

1/21/2028

1,488,750

1,467,872

1,470,141

Quantum Health

Senior Secured Amendment No. 1 Refinancing Term Loan (First Lien)

L+

4.50

%  

9.27

%  

12/18/2020

12/22/2027

1,477,500

1,459,860

1,460,878

Mission Vet Partners

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

12/15/2021

 

4/27/2028

 

1,481,250

 

1,468,364

 

1,447,922

Symplr

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.50

%  

9.09

%  

11/23/2020

 

12/22/2027

 

1,473,750

 

1,456,190

 

1,342,955

Ivy Rehab

 

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.75

%  

9.34

%  

3/11/2022

 

4/23/2029

 

1,147,092

 

1,124,711

 

1,132,753

Solis Mammography

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.75

%  

9.52

%  

4/1/2021

 

4/17/2028

 

1,069,941

 

1,061,811

 

1,061,916

Tecomet

 

 

Senior Secured 2017 Term Loan (First Lien)

 

L+

 

3.50

%  

8.27

%  

1/10/2019

 

5/1/2024

 

1,143,735

 

1,143,669

 

1,034,162

Solis Mammography

 

Senior Secured Initial Term Loan (Second Lien)

 

L+

 

8.00

%  

12.77

%  

4/1/2021

 

4/16/2029

 

1,000,000

 

987,505

 

992,500

Micro Merchant Systems

 

Unitranche Initial Term Loan

 

S+

 

5.75

%  

10.34

%  

3/2/2022

 

12/14/2027

 

992,500

 

982,465

 

990,019

Wedgewood

 

 

Senior Secured Initial Term Loan

 

L+

 

4.25

%  

9.02

%  

2/24/2021

 

3/31/2028

 

987,500

 

979,070

 

987,500

nThrive

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

11/19/2021

 

12/18/2028

 

992,500

 

988,500

 

982,575

Allied Benefit Systems

 

 

Senior Secured Initial Term B Loan

 

L+

 

4.50

%  

9.27

%  

10/21/2020

 

11/18/2026

 

980,000

 

969,646

 

980,000

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

17

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS - (97.4%) (g) (h) (Continued):

Healthcare & Pharmaceuticals (continued)

Forefront

Senior Secured Closing Date Term Loan

S+

4.25

%  

8.84

%  

3/23/2022

 

4/1/2029

 

978,236

$

962,181

$

968,454

Epic Staffing Group

Senior Secured Initial Term Loan

S+

6.00

%  

10.59

%  

6/27/2022

 

6/28/2029

 

821,454

763,696

819,400

UDG

(k)

Senior Secured Initial Dollar Term Loan (First Lien)

L+

4.25

%  

9.02

%  

8/6/2021

 

8/19/2028

 

631,875

626,966

624,766

ImageFirst

Senior Secured Initial Term Loan

L+

4.50

%  

9.27

%  

4/26/2021

 

4/27/2028

 

604,773

602,336

600,237

MyEyeDr

Senior Secured Initial Term Loan (First Lien)

L+

4.25

%  

9.02

%  

8/2/2019

 

8/31/2026

 

521,312

518,666

515,447

Western Dental

Senior Secured 2022 Incremental Term Loan

L+

5.25

%

10.02

%  

6/21/2022

 

8/18/2028

 

497,500

488,274

485,063

AccentCare

Senior Secured 2021 Term Loan (First Lien)

L+

4.00

%  

8.77

%  

6/15/2021

 

6/22/2026

 

492,500

492,500

480,188

MedRisk

(j)

Senior Secured Initial Term Loan (First Lien)

L+

3.75

%  

8.52

%  

4/1/2021

 

5/10/2028

 

493,750

489,558

467,334

RMP & MedA/Rx

Senior Secured Term Loan

L+

4.50

%  

9.27

%  

3/22/2021

 

2/6/2025

 

465,625

462,043

462,133

Press Ganey

(j)

Senior Secured 2020 Incremental Term Loan (First Lien)

L+

3.75

%  

8.52

%  

10/1/2020

7/24/2026

491,269

487,720

451,508

RMP & MedA/Rx

Senior Secured Term Loan (First Lien)

L+

4.25

%  

9.02

%  

2/27/2017

2/6/2025

397,482

397,490

394,501

Blue Cloud

Senior Secured Revolving Credit Loan

S+

5.00

%  

9.59

%  

12/14/2022

1/21/2028

50,000

50,000

49,375

CPS

(i)

Senior Secured Revolving Credit Loan

L+

5.75

%  

10.52

%  

5/18/2022

6/1/2028

(714)

Ivy Rehab

Senior Secured Revolving Credit Loan (First Lien)

S+

4.75

%  

9.34

%  

3/11/2022

4/21/2028

(3,367)

InterMed

(i) (j)

Senior Secured Revolving Credit Loan

S+

6.50

%  

11.09

%  

12/22/2022

12/24/2028

(21,598)

Services: Business

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 

  

 

  

LegalShield

 

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

12/7/2021

 

12/15/2028

 

4,466,250

 

 

4,426,965

 

4,305,152

InnovateMR

 

(i)

 

Unitranche Initial Term Loan

 

L+

 

5.50

%  

10.27

%  

12/16/2021

 

1/20/2028

 

4,200,101

 

 

4,134,245

 

4,200,101

CoAdvantage

 

(l)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

5.00

%  

9.77

%  

9/26/2019

 

9/23/2025

 

3,870,000

 

 

3,849,940

 

3,870,000

RevSpring

 

(l)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

10/5/2018

 

10/11/2025

 

3,840,000

 

 

3,837,742

 

3,840,000

Eliassen

 

Unitranche Initial Term Loan

 

S+

 

5.75

%  

10.34

%  

3/31/2022

 

4/7/2028

 

3,361,944

 

 

3,309,152

 

3,345,135

Veritext

 

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.50

%  

8.27

%  

8/14/2018

 

8/1/2025

 

3,079,058

 

 

3,064,961

 

3,079,058

Discovery Education

 

Unitranche Initial Term Loan (First Lien)

 

S+

 

5.75

%  

10.34

%  

3/25/2022

 

4/6/2029

 

2,992,500

 

 

2,945,651

 

2,970,056

Fleetwash

 

Senior Secured Incremental Term Loan

 

S+

 

4.75

%  

9.34

%  

9/25/2018

 

10/1/2024

 

2,873,288

 

 

2,863,535

 

2,851,738

The Facilities Group

 

Unitranche Initial Term Loan

 

L+

 

5.75

%  

10.52

%  

12/10/2021

 

11/30/2027

 

2,726,358

 

 

2,700,991

 

2,705,911

Industrial Services Group

 

(i)

 

Unitranche Initial Term Loan

 

S+

 

6.25

%  

10.84

%  

12/7/2022

 

12/7/2028

 

2,761,905

 

 

2,657,619

 

2,640,476

CoolSys

 

Senior Secured Closing Date Initial Term Loan

 

L+

 

4.75

%  

9.52

%  

8/4/2021

 

8/11/2028

 

2,564,375

 

 

2,538,048

 

2,513,088

Service Logic

 

Senior Secured Closing Date Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

10/23/2020

 

10/29/2027

 

2,535,569

 

 

2,516,126

 

2,510,213

Duff & Phelps

 

(j)

 

Senior Secured Initial Dollar Term Loan (First Lien)

 

S+

 

3.75

%  

8.34

%  

3/6/2020

 

4/9/2027

 

2,437,500

 

 

2,422,596

 

2,282,499

TRC Companies

 

Senior Secured Initial Term Loan (Second Lien)

 

L+

 

6.75

%  

11.52

%  

11/19/2021

 

12/7/2029

 

2,000,000

 

 

1,980,000

 

1,980,000

Liberty Group

 

(i)

 

Unitranche Initial Term Loan

 

S+

 

5.75

%  

10.34

%  

6/6/2022

 

6/9/2028

 

1,945,114

 

 

1,906,873

 

1,919,735

Veregy

 

Senior Secured Initial Term Loan

 

L+

 

6.00

%  

10.77

%  

11/2/2020

 

11/3/2027

 

1,960,000

 

 

1,916,318

 

1,911,000

InnovateMR

 

(i)

 

Unitranche First Amendment Term Loan

 

S+

 

5.50

%  

10.09

%  

12/23/2022

 

1/20/2028

 

1,891,019

 

 

1,832,654

 

1,891,019

ECi Software

 

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

9/17/2020

 

11/9/2027

 

1,960,000

 

 

1,953,585

 

1,886,500

Mediaocean

 

(j)

 

Senior Secured Initial Term Loan

 

L+

 

3.50

%  

8.27

%  

12/9/2021

 

12/15/2028

 

1,985,000

 

 

1,967,596

 

1,822,726

Insight Global

 

Unitranche Closing Date Term Loan

 

L+

 

6.00

%  

10.77

%  

9/22/2021

 

9/22/2028

 

1,481,250

 

 

1,454,671

 

1,481,250

Addison Group

 

Senior Secured Initial Term Loan

 

S+

 

4.25

%  

8.84

%  

1/19/2022

 

12/29/2028

 

1,488,750

 

 

1,485,425

 

1,477,584

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

18

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (Continued):

Services: Business (continued)

OSG Billing Services

 

Senior Secured Amended and Restated Term A Loan

 

S+

 

5.50

%  

1.50

% PIK

10.09

%  

8/31/2022

 

6/26/2026

 

1,442,041

$

1,440,308

$

1,355,519

First Advantage

 

(j)

 

Senior Secured Term B-1 Loan (First Lien)

 

L+

 

2.75

%  

7.52

%  

1/23/2020

 

1/31/2027

 

1,100,312

 

1,091,680

 

1,082,432

Veritext

 

(j)

 

Senior Secured Initial Term Loan (Second Lien)

 

L+

 

6.75

%  

11.52

%  

8/14/2018

 

7/31/2026

 

1,000,000

 

997,283

 

1,000,000

Vistage

 

Senior Secured Initial Term Loan

 

S+

 

5.25

%  

9.84

%  

7/18/2022

 

7/13/2029

 

997,500

 

971,265

 

992,513

trustaff

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

12/9/2021

 

3/6/2028

 

987,437

 

985,293

 

987,437

TRC Companies

 

Senior Secured Term Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

11/19/2021

 

12/8/2028

 

992,513

 

988,187

 

985,069

Divisions Maintenance Group

 

Senior Secured Term B Loan

 

L+

 

4.75

%  

9.52

%  

5/21/2021

 

5/27/2028

 

987,500

 

979,366

 

985,031

Secretariat International

 

Senior Secured Term Loan (First Lien)

 

L+

 

4.75

%  

9.52

%  

12/16/2021

 

12/29/2028

 

975,711

 

971,287

 

965,953

WIRB-Copernicus Group

 

Senior Secured Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

12/13/2019

 

1/8/2027

 

975,000

 

968,894

 

965,250

Diversified

 

Senior Secured Initial Term Loan

 

S+

 

5.00

%  

1.50

% PIK

9.59

%  

4/19/2019

 

12/23/2023

 

899,347

 

897,624

 

870,118

eResearch

 

(j)

 

Senior Secured Term Loan (First Lien)

 

L+

 

4.50

%  

9.27

%  

12/1/2020

 

2/4/2027

 

979,906

 

979,906

 

867,520

VC3

 

(i)

 

Senior Secured Delayed Draw Term Loan D

 

S+

 

5.25

%  

9.84

%  

9/16/2022

 

3/12/2027

 

742,423

 

694,346

 

702,569

Therma Holdings

 

(j)

 

Senior Secured Initial Term Loan (2021)

 

L+

 

3.75

%  

8.52

%  

12/11/2020

 

12/16/2027

 

590,428

 

588,526

 

560,541

System One

 

Senior Secured Initial Term Loan

 

S+

 

4.00

%  

8.59

%  

1/28/2021

 

3/2/2028

 

492,500

 

490,627

 

490,038

Insight Global

 

Senior Secured Revolving Loan

 

L+

 

6.00

%  

10.77

%  

9/23/2021

 

9/22/2027

 

53,671

 

53,671

 

53,671

VC3

 

(i)

 

Senior Secured Revolving Credit

 

S+

 

5.25

%  

9.84

%  

7/21/2022

 

3/12/2027

 

 

(2,692)

 

Discovery Education

 

Senior Secured Revolving Credit Loan (First Lien)

 

S+

 

5.75

%  

10.34

%  

3/25/2022

 

4/7/2028

 

 

(4,038)

 

Liberty Group

 

(i)

 

Senior Secured Revolving Loan

 

S+

 

5.75

%  

10.34

%  

6/6/2022

 

6/9/2028

 

 

(4,545)

 

Industrial Services Group

 

(i)

 

Senior Secured Revolving Loan

 

S+

 

6.25

%  

10.84

%  

12/7/2022

 

12/7/2028

 

 

(17,143)

 

High Tech Industries

Qlik

 

(j)(l)

 

Senior Secured 2021 Refinancing Term Loan

 

L+

 

4.00

%  

8.77

%  

3/29/2019

 

4/26/2024

 

3,861,200

 

3,852,597

 

3,776,254

Golden Source

 

(i)

 

Unitranche Initial Term Loan

 

S+

 

5.50

%  

10.09

%  

3/25/2022

 

5/12/2028

 

3,454,402

 

3,380,910

 

3,341,463

Netsmart

 

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

9/29/2020

 

10/1/2027

 

3,438,750

 

3,427,753

 

3,320,543

Jaggaer

 

(j)

 

Senior Secured Term Loan (First Lien)

 

S+

 

3.75

%  

8.34

%  

8/9/2019

 

8/14/2026

 

3,059,478

 

3,056,395

 

2,980,314

Infogroup

 

(j)

 

Senior Secured Term Loan (First Lien)

 

L+

 

5.00

%  

9.77

%  

3/28/2017

 

4/3/2023

 

2,829,862

 

2,826,938

 

2,829,862

Planview

 

Senior Secured Closing Date Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

12/11/2020

 

12/17/2027

 

2,605,701

 

2,583,676

 

2,504,958

Idera

 

(j)

 

Senior Secured Term B-1 Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

6/27/2017

 

3/2/2028

 

2,573,127

 

2,573,136

 

2,433,214

Ivanti Software

 

(j)

 

Senior Secured 2021 Specified Refinancing Term Loan (First Lien)

 

L+

 

4.25

%  

9.02

%  

11/20/2020

 

12/1/2027

 

2,962,613

 

2,931,550

 

2,359,291

PracticeTek

 

(i)

 

Unitranche Initial Term Loan

 

L+

 

6.25

%  

11.02

%  

11/22/2021

 

11/23/2027

 

2,382,968

 

2,329,122

 

2,299,688

Precisely

 

  

 

Senior Secured Third Amendment Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

3/19/2021

 

4/24/2028

 

2,468,750

 

2,457,445

 

2,299,440

Flexera

 

(j)

 

Senior Secured Term B-1 Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

2/16/2020

 

3/3/2028

 

2,358,160

 

2,358,160

 

2,268,998

Barracuda

 

  

 

Senior Secured Initial Term Loan (Second Lien)

 

S+

 

7.00

%  

11.59

%  

5/17/2022

 

5/31/2030

 

2,000,000

 

1,940,000

 

1,977,500

QuickBase

 

  

 

Senior Secured Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

3/29/2019

 

4/2/2026

 

1,930,000

 

1,925,451

 

1,905,875

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

19

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (Continued):

High Tech Industries (continued)

Sophos

 

(j)(m)

 

Senior Secured Dollar Tranche Term Loan (First Lien)

 

L+

 

3.50

%  

8.27

%  

1/16/2020

 

3/5/2027

 

1,950,024

$

1,877,853

$

1,895,706

Intermedia

 

  

 

Senior Secured New Term Loan (First Lien)

 

L+

 

6.00

%  

10.77

%  

7/13/2018

 

7/21/2025

 

1,920,000

 

1,913,976

 

1,881,600

HelpSystems

 

  

 

Senior Secured Term Loan

 

S+

 

4.00

%  

8.59

%  

12/19/2019

 

11/19/2026

 

1,969,727

 

1,963,923

 

1,870,502

Bomgar

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

5/25/2018

 

4/18/2025

 

1,610,595

 

1,615,029

 

1,598,516

OEConnection

 

  

 

Senior Secured Initial Term Loan

 

L+

 

4.00

%  

8.77

%  

9/24/2019

 

9/25/2026

 

1,592,260

 

1,588,315

 

1,584,299

Digital Room

 

  

 

Senior Secured Closing Date Term Loan (First Lien)

 

L+

 

5.25

%  

10.02

%  

12/16/2021

 

12/21/2028

 

1,488,750

 

1,475,605

 

1,473,863

SmartBear

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.25

%  

9.02

%  

11/20/2020

 

3/3/2028

 

985,000

 

976,981

 

980,075

WellSky

 

  

 

Senior Secured Incremental Term B-1 Loan (First Lien)

 

S+

 

5.75

%  

10.34

%  

8/16/2022

 

3/10/2028

 

997,500

 

968,858

 

975,056

ORBCOMM

 

  

 

Senior Secured Closing Date Term Loan (First Lien)

 

L+

 

4.25

%  

9.02

%  

6/17/2021

 

9/1/2028

 

987,500

 

983,149

 

955,406

Imperva

 

  

 

Senior Secured Term Loan

 

L+

 

4.00

%  

8.77

%  

9/23/2020

 

1/12/2026

 

975,981

 

970,223

 

949,142

Infoblox

 

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

3.75

%  

8.34

%  

10/7/2020

 

12/1/2027

 

985,000

 

981,549

 

913,095

Cloudera

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

8/10/2021

 

10/8/2028

 

496,250

 

491,967

 

492,528

Barracuda

 

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.50

%  

9.09

%  

5/17/2022

 

5/31/2029

 

500,000

 

485,490

 

483,055

DigiCert

 

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.00

%  

8.59

%  

3/13/2020

 

10/16/2026

 

486,250

 

469,111

 

470,795

PracticeTek

 

(i)

 

Senior Secured Revolving Loan

 

L+

 

6.25

%  

11.02

%  

11/22/2021

 

11/23/2027

 

 

(7,156)

 

Golden Source

 

(i)

 

Senior Secured Revolving Loan

 

S+

 

5.50

%  

10.09

%  

8/22/2022

 

5/12/2028

 

 

(9,390)

 

Containers, Packaging & Glass

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 

  

 

 

  

InMark

 

(i)

 

Unitranche Incremental Term Loan

 

S+

 

6.00

%  

10.59

%  

12/10/2021

 

12/23/2026

 

6,419,952

 

 

6,305,403

 

 

6,419,952

Transcendia

 

Senior Secured 2017 Refinancing Term Loan (First Lien)

 

L+

 

3.50

%  

8.27

%  

5/11/2017

 

5/30/2024

 

3,318,093

 

 

3,313,837

 

 

3,226,846

Brook & Whittle

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.00

%  

8.59

%  

12/9/2021

 

12/14/2028

 

3,131,265

 

 

3,107,930

 

 

3,131,265

Anchor Packaging

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

7/17/2019

 

7/18/2026

 

2,490,744

 

 

2,482,832

 

 

2,490,744

PCI

 

(j)

 

Senior Secured Term B Loan (First Lien)

 

L+

 

3.50

%  

8.27

%  

9/25/2020

 

11/30/2027

 

2,443,938

 

 

2,436,928

 

 

2,323,928

Paragon Films

 

Senior Secured Closing Date Term Loan (First Lien)

 

L+

 

5.00

%  

9.77

%  

12/15/2021

 

12/16/2028

 

1,985,000

 

 

1,966,087

 

 

1,975,075

Intertape Polymer

 

(n)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.75

%  

9.34

%  

6/15/2022

 

6/28/2028

 

1,995,000

 

 

1,921,340

 

 

1,899,699

Resource Label Group

 

Senior Secured Closing Date Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

7/2/2021

 

7/7/2028

 

1,860,949

 

 

1,852,924

 

 

1,860,949

TricorBraun

 

(j)

 

Senior Secured Closing Date Initial Term Loan (First Lien)

 

L+

 

3.25

%  

8.02

%  

1/29/2021

 

3/3/2028

 

1,810,382

 

 

1,802,881

 

 

1,731,648

Potters Industries

 

Senior Secured Initial Term Loan

 

L+

 

4.00

%  

8.77

%  

11/19/2020

 

12/14/2027

 

1,473,750

 

 

1,463,413

 

 

1,462,697

Technimark

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

6/30/2021

 

7/7/2028

 

1,477,500

 

 

1,471,343

 

 

1,444,256

Tekni-Plex

 

(j)

 

Senior Secured Tranche B-3 Initial Term Loan

 

L+

 

4.00

%  

8.77

%  

7/29/2021

 

9/15/2028

 

1,128,183

 

 

1,125,889

 

 

1,086,079

Lacerta

 

Senior Secured Term Loan

 

L+

 

5.50

%  

10.27

%  

2/8/2021

 

12/30/2026

 

980,000

 

 

971,686

 

 

970,200

Novolex

 

(j)

 

Senior Secured Term B Loan (First Lien)

 

S+

 

4.25

%  

8.84

%  

3/30/2022

 

4/13/2029

 

995,000

 

 

972,844

 

 

950,101

Pregis

 

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

3.75

%  

8.34

%  

7/25/2019

 

7/31/2026

 

970,000

 

 

968,670

 

 

945,386

Applied Adhesives

 

Senior Secured Term A Loan

 

L+

 

4.75

%  

9.52

%  

3/12/2021

 

3/12/2027

 

593,430

 

 

588,737

 

 

591,946

Five Star Packaging

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.25

%  

8.84

%  

4/27/2022

 

5/5/2029

 

498,750

 

 

491,854

 

 

495,009

Pregis

 

Senior Secured Third Amendment Refinancing Term Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

12/9/2020

 

7/31/2026

 

493,750

 

 

492,024

 

 

492,516

Golden West Packaging

 

Senior Secured Initial Term Loan

 

L+

 

5.25

%  

10.02

%  

11/29/2021

 

12/1/2027

 

490,625

 

 

486,330

 

 

489,398

Applied Adhesives

 

Senior Secured Revolving Loan

 

L+

 

4.75

%  

9.52

%  

3/12/2021

 

3/12/2027

 

 

 

(616)

 

 

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

20

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (Continued):

Banking, Finance, Insurance & Real Estate

 

 

 

  

 

  

 

  

 

 

 

  

 

 

  

 

 

  

Cerity Partners

 

(i)

 

Unitranche Initial Term Loan

 

S+

 

5.75

%  

10.34

%  

7/28/2022

 

7/27/2029

 

4,647,849

 

$

4,574,823

 

$

4,570,390

Confluence

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

3.75

%  

8.34

%  

7/22/2021

 

7/31/2028

 

3,960,000

 

 

3,941,319

 

 

3,915,450

Cherry Bekaert

 

(i)

 

Unitranche Term B Loan

 

S+

 

5.50

%  

10.09

%  

6/13/2022

 

6/30/2028

 

3,550,571

 

 

3,464,800

 

 

3,479,035

Ascensus

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.50

%  

8.27

%  

11/17/2021

 

8/2/2028

 

2,977,500

 

 

2,965,493

 

 

2,917,950

Alera

 

Unitranche 2022 Incremental Term Loan

 

S+

 

6.50

%  

11.09

%  

8/31/2022

 

9/30/2028

 

2,819,600

 

 

2,740,779

 

 

2,798,453

EPIC Insurance

 

Unitranche Closing Date Term Loan

 

L+

 

5.25

%  

10.02

%  

8/27/2021

 

9/29/2028

 

2,371,834

 

 

2,338,982

 

 

2,359,975

American Beacon Advisors

 

Senior Secured Tranche D Term Loan (Second Lien)

 

L+

 

8.00

%  

12.77

%  

10/31/2017

 

4/30/2025

 

2,117,133

 

 

2,121,970

 

 

2,093,316

Beta+

 

Senior Secured Initial Term Loan

 

S+

 

5.25

%  

9.84

%  

6/24/2022

 

7/1/2029

 

1,995,000

 

 

1,956,752

 

 

1,985,025

Kestra Financial

 

Senior Secured Initial Term Loan

 

S+

 

4.25

%  

8.84

%  

4/29/2019

 

6/3/2026

 

1,935,000

 

 

1,924,606

 

 

1,920,488

Orion

 

Senior Secured 2021 Refinancing Term Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

8/4/2020

 

9/24/2027

 

1,470,065

 

 

1,458,041

 

 

1,393,806

SIAA

 

Unitranche Initial Term Loan

 

L+

 

6.25

%  

11.02

%  

4/21/2021

 

4/28/2028

 

1,160,762

 

 

1,142,944

 

 

1,140,125

Advisor Group

 

(j)

 

Senior Secured Term B-1 Loan

 

L+

 

4.50

%  

9.27

%  

1/31/2020

 

7/31/2026

 

1,018,929

 

 

1,018,969

 

 

998,780

Community Brands

 

Unitranche Initial Term Loan

 

S+

 

5.75

%  

10.34

%  

2/23/2022

 

2/24/2028

 

992,500

 

 

972,300

 

 

982,575

LERETA

 

Senior Secured Initial Term Loan

 

L+

 

5.25

%  

10.02

%  

7/27/2021

 

7/30/2028

 

987,500

 

 

978,810

 

 

972,688

Sedgwick Claims

 

(j)

 

Senior Secured Initial Term Loan

 

L+

 

3.25

%  

8.02

%  

2/12/2020

 

12/31/2025

 

484,848

 

 

484,476

 

 

472,424

EdgeCo

 

Senior Secured Third Amendment Term Loan (First Lien)

 

L+

 

4.75

%  

9.52

%  

3/29/2022

 

6/1/2026

 

297,750

 

 

275,745

 

 

295,517

Integro

 

(o)

 

Senior Secured 2022 Refinancing Term Loan (First Lien)

 

FIXED

 

12.50

% PIK

12.25

%  

10/9/2015

 

5/8/2023

 

228,698

 

 

232,323

 

 

228,698

Cherry Bekaert

 

(i)

 

Senior Secured Revolving Credit Loan

 

S+

 

5.50

%  

10.09

%  

8/1/2022

 

6/30/2028

 

184,942

 

 

184,942

 

 

181,215

EPIC Insurance

 

Senior Secured Revolving Loan

 

L+

 

5.25

%  

10.02

%  

8/27/2021

 

9/30/2027

 

 

 

(269)

 

 

Beta+

 

Senior Secured Revolving Credit Loan

 

S+

 

5.25

%  

9.84

%  

6/24/2022

 

7/1/2027

 

 

 

(6,216)

 

 

Capital Equipment

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

FlowWorks

 

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

5.75

%  

10.34

%  

3/1/2022

 

12/27/2028

 

3,980,000

3,856,250

3,980,000

Tank Holding

 

(l)

 

Unitranche Initial Term Loan

 

S+

 

6.00

%  

10.59

%  

3/25/2022

 

3/31/2028

 

3,980,000

 

3,907,511

  

3,970,050

Plaskolite

 

 

Senior Secured 2021-1 Refinancing Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

12/12/2018

 

12/15/2025

 

3,841,575

 

3,807,287

  

3,624,046

Excelitas

 

 

Unitranche Closing Date Euro Term Loan

 

L+

 

5.75

%  

10.52

%  

6/15/2022

 

8/12/2029

 

2,969,565

 

3,013,358

  

2,947,293

Burke Porter Group

 

(i)

 

Senior Secured Closing Date Term Loan

 

S+

6.00

%  

10.59

%  

9/30/2022

 

7/29/2029

 

2,333,333

 

2,271,028

  

2,310,000

MW Industries

 

(j)

 

Senior Secured 2018 New Term Loan (First Lien)

 

L+

3.75

%  

8.52

%  

4/20/2018

 

9/30/2024

 

2,037,048

 

2,037,048

  

2,037,048

Flow Control Group

 

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

3.75

%  

8.52

%  

3/17/2021

 

3/31/2028

 

1,666,204

 

1,663,888

  

1,588,626

Radwell

 

 

Unitranche Initial Term Loan

 

S+

5.75

%  

10.34

%  

3/11/2022

 

4/1/2029

 

1,492,500

 

1,469,422

  

1,492,500

Edward Don

 

 

Senior Secured Initial Term Loan

 

L+

4.25

%  

9.02

%  

6/26/2018

 

7/2/2025

 

1,370,943

 

1,369,445

  

1,350,378

Therm-O-Disc

 

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

6.00

%  

10.59

%  

5/26/2022

 

5/31/2029

 

997,500

 

923,600

  

992,513

Cleaver Brooks

 

 

Senior Secured Initial Term Loan

 

S+

5.75

%  

10.34

%  

7/18/2022

 

7/31/2028

 

993,750

 

974,648

  

988,781

TriMark

 

 

Senior Secured Second Amendment Tranche B Loan (Super Senior Priority)

 

L+

3.50

%  

8.27

%  

1/31/2022

 

8/28/2024

 

963,589

 

963,589

  

684,148

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

21

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (Continued):

  

  

  

  

  

  

  

  

  

  

 

Capital Equipment (continued)

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Culligan

 

(j)

 

Senior Secured 2022 Refinancing Term B Loan

 

L+

 

3.75

%  

8.52

%  

6/17/2021

 

7/31/2028

 

559,688

 

$

556,920

 

$

528,555

Infinite Electronics

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

3.25

%  

8.02

%  

2/24/2021

 

3/2/2028

 

492,500

 

491,568

 

  

491,269

Duravant

 

(j)

 

Senior Secured Incremental Amendment No. 5 Term Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

3/5/2020

 

5/19/2028

 

487,500

 

487,500

 

  

472,799

SPX Flow

 

(j)

 

Senior Secured Term Loan

 

S+

4.50

%  

9.09

%  

3/18/2022

 

4/5/2029

 

498,750

 

478,053

 

  

467,134

Burke Porter Group

 

(i)

 

Senior Secured Revolving Credit Loan

 

S+

 

6.00

%  

10.59

%  

8/11/2022

 

7/29/2028

 

54,991

 

44,586

 

  

54,441

Tank Holding

 

 

Senior Secured Revolving Credit Loan

 

S+

 

6.00

%  

10.59

%  

3/25/2022

 

3/31/2028

 

24,615

 

21,662

 

  

24,554

Cleaver Brooks

 

 

Senior Secured Revolving Loan

 

S+

 

5.75

%  

10.34

%  

7/21/2022

 

7/31/2028

 

15,385

 

12,923

 

  

15,308

Radwell

 

 

Senior Secured Revolving Loan

 

S+

5.75

%  

10.34

%  

3/11/2022

 

4/1/2028

 

 

(1,200)

 

  

 

 

 

 

 

 

 

  

Aerospace & Defense

HDT Global

 

 

Senior Secured Initial Term Loan

 

L+

5.75

%  

10.52

%  

6/30/2021

 

7/8/2027

 

3,237,500

 

3,146,132

 

  

3,132,281

StandardAero

 

(j)

 

Senior Secured 2020 Term B-1 Loan

 

L+

3.50

%  

8.27

%  

1/24/2019

 

4/6/2026

 

3,237,691

 

3,233,062

 

  

3,094,520

CPI International

 

 

Unitranche Initial Term Loan

 

S+

5.50

%  

10.09

%  

5/18/2022

 

10/6/2029

 

3,000,000

 

2,933,703

 

  

2,977,500

Amentum

 

 

Senior Secured Tranche 3 Term Loan (First Lien)

 

S+

4.00

%  

8.59

%  

2/10/2022

 

2/15/2029

 

1,990,000

 

1,980,482

 

  

1,990,000

Consolidated Precision Products

 

 

Senior Secured Initial Term Loan (Second Lien)

 

L+

7.75

%  

12.52

%  

5/10/2018

 

4/30/2026

 

2,000,000

 

2,005,563

 

  

1,920,000

Whitcraft

 

 

Unitranche Initial Term Loan

 

L+

 

6.00

%  

10.77

%  

3/6/2020

 

4/3/2023

 

1,942,344

 

1,936,382

 

  

1,864,650

StandardAero

 

(j)

 

Senior Secured 2020 Term B-2 Loan

 

L+

3.50

%  

8.27

%  

1/24/2019

 

4/6/2026

 

1,740,694

 

1,738,206

 

  

1,663,720

Tronair

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

5.75

% PIK

10.52

%  

9/30/2016

 

9/8/2023

 

1,344,845

 

1,343,776

 

  

1,291,051

Peraton

 

(j)

 

Senior Secured Term B Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

2/23/2021

 

2/1/2028

 

964,612

 

960,887

 

  

943,714

API Technologies

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.25

%  

9.02

%  

1/15/2020

 

5/9/2026

 

969,849

 

951,105

 

  

872,864

BlueHalo

Unitranche Initial Term Loan

L+

6.00

%  

10.77

%  

11/17/2021

10/31/2025

494,014

487,514

488,457

Novaria Group

 

 

Senior Secured Initial Term Loan

 

S+

5.50

%  

10.09

%  

1/24/2020

 

1/27/2027

 

481,818

 

478,783

 

  

477,000

Consolidated Precision Products

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

7/18/2019

 

4/30/2025

 

483,082

 

481,741

 

  

463,759

BlueHalo

Senior Secured Revolving Loan

L+

6.00

%  

10.77

%  

11/17/2021

10/31/2025

91,486

89,997

90,456

Chemicals, Plastics & Rubber

DuBois Chemicals

Senior Secured Term Loan (Second Lien) - 2019

L+

8.50

%  

13.27

%  

10/8/2019

9/30/2027

3,000,000

2,981,878

2,985,000

Vertellus

Senior Secured Initial Term Loan

S+

5.75

%  

10.34

%  

12/18/2020

12/22/2027

2,962,613

2,902,499

2,910,767

Spectrum Plastics

Senior Secured Closing Date Term Loan (First Lien)

L+

3.25

%  

8.02

%  

1/26/2018

1/31/2025

2,600,325

2,604,902

2,574,322

Unifrax

(j)

Senior Secured USD Term Loan (First Lien)

L+

3.75

%  

8.52

%  

11/5/2018

12/12/2025

2,401,203

2,382,882

2,142,329

Boyd Corp

Senior Secured Initial Loan (Second Lien)

L+

6.75

%  

11.52

%  

8/16/2018

9/6/2026

2,000,000

2,001,368

1,995,000

USALCO

Unitranche Term Loan A

L+

6.00

%  

10.77

%  

10/26/2021

10/19/2027

1,980,000

1,962,805

1,960,200

DuBois Chemicals

Senior Secured Term Loan B (First Lien)

L+

4.50

%  

9.27

%  

10/8/2019

9/30/2026

1,759,343

1,734,161

1,746,148

Vantage Specialty Chemicals

(j)

Senior Secured Closing Date Term Loan (First Lien)

L+

3.50

%  

8.27

%  

11/30/2018

10/26/2026

957,179

950,212

936,958

Ascensus Specialties

Senior Secured Initial Term Loan

L+

4.25

%  

9.02

%  

12/3/2021

6/30/2028

493,722

485,722

488,785

Boyd Corp

Senior Secured Initial Term Loan (First Lien)

L+

3.50

%  

8.27

%  

11/7/2018

9/6/2025

487,277

469,149

486,059

Polytek

Senior Secured Term Loan

S+

5.75

%  

10.34

%  

12/23/2020

9/20/2024

490,119

485,649

465,613

USALCO

Senior Secured Revolving Loan

L+

6.00

%  

10.77

%  

10/26/2021

10/19/2026

137,097

133,871

135,726

Vertellus

Senior Secured Revolving Credit Loan

S+

5.75

%  

10.34

%  

12/18/2020

12/22/2025

(10,130)

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

22

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (Continued):

  

  

  

  

  

  

  

  

  

  

Transportation: Cargo

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 

  

 

 

  

Evans Network

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.25

%  

9.02

%  

8/6/2021

 

8/19/2028

 

3,636,735

 

$

3,601,783

 

$

3,636,735

Capstone Logistics

 

  

 

Senior Secured Closing Date Term Loan (First Lien)

 

L+

 

4.75

%  

9.52

%  

11/12/2020

 

11/12/2027

 

2,095,641

 

 

2,079,357

 

 

2,095,641

AIT Worldwide Logistics

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.75

%  

9.52

%  

12/9/2021

 

4/6/2028

 

1,975,000

 

 

1,970,660

 

 

1,897,545

St. George Logistics

 

  

 

Senior Secured Initial Term Loan

 

S+

 

6.00

%  

10.59

%  

4/28/2022

 

3/24/2026

 

1,492,500

 

 

1,471,706

 

 

1,492,500

Worldwide Express

 

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

7/23/2021

 

7/26/2028

 

1,485,000

 

 

1,475,223

 

 

1,363,831

FLS Transportation

 

  

 

Senior Secured Term B Loan

 

L+

 

5.25

%  

10.02

%  

4/14/2022

 

12/15/2028

 

1,217,391

 

 

1,206,381

 

 

1,217,391

Omni Logistics

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

5.00

%  

9.77

%  

11/24/2021

 

12/30/2026

 

1,148,217

 

 

1,137,659

 

 

1,136,735

Magnate

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

5.50

%  

10.27

%  

3/11/2022

 

12/29/2028

 

954,107

 

 

936,858

 

 

954,107

Odyssey Logistics

 

(j)

 

Senior Secured New Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

11/20/2018

 

10/12/2024

 

4,191

 

 

4,183

 

 

4,110

FLS Transportation

 

  

 

Senior Secured Revolving Credit Loan

 

L+

 

5.25

%  

10.02

%  

4/14/2022

 

12/17/2027

 

 

 

(889)

 

 

Omni Logistics

 

  

 

Senior Secured Revolving Credit Loan (First Lien)

 

L+

 

5.00

%  

9.77

%  

11/24/2021

 

12/30/2025

 

 

 

(1,119)

 

 

Services: Consumer

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 

  

 

 

  

Ned Stevens 2022-2

 

(i)

 

Unitranche Initial Term Loan

 

S+

 

6.75

%  

11.34

%  

11/1/2022

 

11/1/2029

 

3,553,922

 

 

3,422,937

 

 

3,411,765

A Place For Mom

 

  

 

Senior Secured Term Loan

 

L+

 

4.50

%  

9.27

%  

7/28/2017

 

2/10/2026

 

2,208,078

 

 

2,208,116

 

 

2,163,917

Smart Start

 

  

 

Senior Secured Term B Loan (Second Lien)

 

L+

 

7.75

%  

12.52

%  

12/10/2021

 

12/16/2029

 

2,000,000

 

 

1,967,924

 

 

1,975,000

Smart Start

 

  

 

Senior Secured Term B Loan (First Lien)

 

L+

 

4.50

%  

9.27

%  

12/10/2021

 

12/16/2028

 

1,980,000

 

 

1,967,493

 

 

1,957,725

FullBloom

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.25

%  

8.84

%  

12/10/2021

 

12/15/2028

 

1,492,500

 

 

1,479,301

 

 

1,477,575

Teaching Strategies

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

3.75

%  

8.34

%  

8/19/2021

 

8/31/2028

 

990,000

 

 

980,710

 

 

982,575

Spring Education

 

(j)

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

7/26/2018

 

7/30/2025

 

957,500

 

 

956,472

 

 

937,838

Aegis Sciences

 

  

 

Senior Secured Initial Term Loan (2018) (First Lien)

 

L+

 

5.50

%  

10.27

%  

5/4/2018

 

5/9/2025

 

605,234

 

 

602,154

 

 

605,234

Ned Stevens 2022-2

 

(i)

 

Senior Secured Revolving Loan

 

S+

 

6.75

%  

11.34

%  

11/1/2022

 

11/1/2029

 

 

 

(10,154)

 

 

Beverage, Food & Tobacco

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 

  

 

 

  

Bettcher Industries

 

  

 

Senior Secured Initial Term Loan (Second Lien)

 

S+

 

7.25

%  

11.84

%  

12/13/2021

 

12/14/2029

 

2,500,000

 

 

2,477,592

 

 

2,450,000

Sovos Brands

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.50

%  

8.27

%  

6/8/2021

 

6/8/2028

 

2,033,001

 

N you  

2,033,001

 

 

2,033,001

Bettcher Industries

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.00

%  

8.59

%  

12/13/2021

 

12/14/2028

 

1,985,000

 

 

1,965,440

 

 

1,945,300

Hissho Sushi

 

(i)

 

Unitranche Term Loan

 

S+

 

6.00

%  

10.59

%  

4/7/2022

 

5/18/2028

 

1,847,857

 

 

1,811,445

 

 

1,835,156

Dessert Holdings

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

6/7/2021

 

6/9/2028

 

1,761,792

 

 

1,750,148

 

 

1,735,365

Monogram Foods

 

  

 

Senior Secured Initial Term Loan

 

L+

 

4.00

%  

8.77

%  

8/13/2021

 

8/28/2028

 

990,000

 

 

981,323

 

 

965,250

Hissho Sushi

 

(i)

 

Senior Secured Revolving Loan

 

S+

 

6.00

%  

10.59

%  

4/7/2022

 

5/18/2028

 

28,571

 

 

27,905

 

 

28,375

23

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (Continued):

 

  

 

 

 

 

 

 

 

 

Automotive

 

  

 

 

 

  

 

 

 

 

 

BBB Industries

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

5.25

%  

9.84

%  

6/30/2022

 

7/31/2029

 

3,000,000

$

2,713,911

$

2,857,500

Highline

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.50

%  

9.27

%  

10/29/2020

 

11/9/2027

 

2,813,523

 

2,759,164

 

2,764,286

Rough Country

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.50

%  

8.27

%  

7/26/2021

 

7/28/2028

 

1,975,000

 

1,970,698

 

1,965,125

Truck Hero

 

  

 

Senior Secured Initial Term Loan

 

L+

 

3.75

%  

8.52

%  

1/20/2021

 

1/31/2028

 

1,473,750

 

1,473,750

 

1,366,443

Innovative XCessories

 

  

 

Senior Secured Initial Term Loan

 

L+

 

4.25

%  

9.02

%  

2/27/2020

 

3/5/2027

 

786,124

 

785,092

 

691,789

Safe Fleet

 

  

 

Initial Term Loan (Second Lien)

 

S+

 

6.75

%  

11.34

%  

2/23/2022

 

2/2/2026

 

500,000

 

500,000

 

495,000

Wheel Pros

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.50

%  

9.27

%  

4/23/2021

 

5/11/2028

 

493,750

 

489,984

 

380,681

Construction & Building

 

  

 

 

 

 

 

A1 Garage Door Service

 

(i) (j)

 

Unitranche Term Loan A

 

S+

 

6.50

%  

11.09

%  

12/22/2022

 

12/23/2028

 

1,826,446

 

1,762,273

 

1,771,653

Tangent

 

  

 

Senior Secured Closing Date Term Loan (First Lien)

 

L+

 

4.75

%  

9.52

%  

10/2/2019

 

11/30/2027

 

1,781,392

 

1,774,395

 

1,768,032

PlayPower

 

  

 

Senior Secured Initial Term Loan

 

L+

 

5.50

%  

10.27

%  

5/10/2019

 

5/8/2026

 

1,737,472

 

1,737,472

 

1,563,725

PlayCore

 

  

 

Senior Secured Initial Term Loan (Second Lien)

 

L+

 

7.75

%  

12.52

%  

2/7/2020

 

9/29/2025

 

1,500,000

 

1,480,817

 

1,500,000

Specialty Products & Insulation

 

  

 

Senior Secured Tranche B-1 Term Loan

 

S+

 

5.25

%  

9.84

%  

3/16/2022

 

12/21/2027

 

994,023

 

984,887

 

994,023

Dodge Construction Network

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

S+

 

4.75

%  

9.34

%  

2/10/2022

 

2/23/2029

 

995,000

 

981,676

 

987,538

PlayCore

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.75

%  

8.52

%  

9/18/2017

 

9/30/2024

 

946,930

 

945,987

 

946,930

Acuren

 

  

 

Senior Secured Initial Term Loan

 

L+

 

4.25

%  

9.02

%  

1/17/2020

 

1/23/2027

 

473,783

 

472,348

 

473,783

Hoffman Southwest

 

  

 

Senior Secured Initial Term Loan

 

L+

 

5.50

%  

10.27

%  

5/16/2019

 

8/14/2023

 

422,238

 

425,188

 

421,183

A1 Garage Door Service

 

(i) (j)

 

Senior Secured Revolving Loan

 

S+

 

6.50

%  

11.09

%  

12/22/2022

 

12/23/2028

 

 

(8,264)

 

Environmental Industries

 

  

 

 

Alliance Environmental Group

 

(i)

 

Unitranche Initial Term Loan

 

L+

 

6.00

%  

10.77

%  

12/30/2021

 

12/30/2027

 

4,115,728

 

4,046,325

 

3,959,048

Denali Water Solutions

 

  

 

Senior Secured Closing Date Term Loan

 

L+

 

4.25

%  

9.02

%  

3/18/2021

 

3/27/2028

 

1,970,000

 

1,952,515

 

1,935,525

Keter Environmental Services

 

  

 

Unitranche Closing Date Term Loan

 

L+

 

6.50

%  

11.27

%  

11/5/2021

 

10/29/2027

 

495,000

 

490,704

 

492,525

Denali Water Solutions

 

  

 

Senior Secured Amendment No. 3 Term Loan

 

S+

 

4.63

%  

9.21

%  

5/5/2022

 

3/27/2028

 

497,500

 

481,376

 

488,794

Alliance Environmental Group

 

(i)

 

Senior Secured Revolving Loan

 

L+

 

6.00

%  

10.77

%  

12/30/2021

 

12/30/2027

 

314,570

 

307,947

 

302,594

Keter Environmental Services

 

  

 

Senior Secured Revolving Loan

 

L+

 

6.50

%  

11.27

%  

11/5/2021

 

10/29/2027

 

27,360

 

26,585

 

27,223

Consumer Goods: Non-durable

 

  

 

Hoffmaster Group

 

  

 

Senior Secured Tranche B-1 Term Loan (First Lien)

 

L+

 

4.00

%  

8.77

%  

11/9/2016

 

11/21/2023

 

2,368,573

 

2,367,209

 

2,321,201

Augusta Sportswear

 

  

 

Senior Secured Initial Term Loan

 

S+

 

5.50

%  

10.09

%  

11/2/2016

 

4/25/2025

 

2,001,028

 

1,999,579

 

1,991,023

Hoffmaster Group

 

  

 

Senior Secured Initial Term Loan (Second Lien)

 

L+

 

9.50

%  

14.27

%  

2/7/2020

 

11/21/2024

 

1,250,000

 

1,250,000

 

1,221,875

Wholesale

 

  

 

Carlisle FoodService

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.00

%  

7.77

%  

3/16/2018

 

3/20/2025

 

3,809,768

 

3,810,380

 

3,771,670

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

24

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (h) (Continued):

 

  

 

 

 

 

 

 

 

 

Media: Advertising, Printing & Publishing

 

  

 

MediaRadar

 

(i)

 

Unitranche Closing Date Term A Loan

 

S+

 

6.00

%  

10.59

%  

5/23/2022

 

7/22/2028

 

1,832,444

$

1,788,565

$

1,756,837

Ansira

 

  

 

Unitranche Legacy Term Loan

 

FIXED

 

6.50

 % PIK

6.50

%  

12/20/2016

 

12/20/2024

 

2,266,689

 

2,263,320

 

952,010

MediaRadar

 

(i)

 

Senior Secured Revolving Loan

 

S+

 

6.00

%  

10.59

%  

9/16/2022

 

7/22/2028

 

 

(7,407)

 

Hotels, Gaming & Leisure

Northstar

Senior Secured Term Loan

L*

7.25

%

1.00

%PIK

12.02

%

5/8/2017

6/7/2024

1,294,954

1,294,954

1,252,868

Auto Europe

Senior Secured Initial Dollar Term Loan

S*

5.00

%

9.59

%

10/19/2016

10/21/2023

1,119,231

1,117,283

895,385

Metals & Mining

 

  

 

 

 

 

 

Dynatect (A&A)

 

 

Senior Secured Term B Loan

 

L+

 

4.50

%  

9.27

%  

8/16/2019

 

9/30/2024

 

1,689,870

 

1,680,609

 

1,689,870

Forest Products & Paper

 

  

 

 

Loparex

 

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

4.50

%  

9.27

%  

7/29/2019

 

7/31/2026

 

1,451,250

 

1,443,028

 

1,451,250

Utilities: Electric

 

  

 

 

Systems Control

 

  

 

Senior Secured Initial Term Loan

 

L+

 

4.50

%  

9.27

%  

6/15/2021

 

3/28/2025

 

1,475,482

 

1,473,812

 

1,442,284

Retail

 

 

 

Varsity Brands

 

(j)

 

Senior Secured Third Amendment Extended Term Loan (First Lien)

 

L+

 

3.50

%  

8.27

%  

10/17/2018

 

12/15/2026

 

957,221

 

960,242

 

925,274

StubHub

 

  

 

Senior Secured USD Term B Loan

 

L+

 

3.50

%  

8.27

%  

1/31/2020

 

2/12/2027

 

485,000

 

483,510

 

465,600

Utilities: Water

Aegion

Senior Secured Initial Term Loan

L+

4.75

%

9.52

%

4/1/2021

5/17/2028

987,499

983,463

970,217

Energy: Electricity

Franklin Energy

Senior Secured Term B Loan (First Lien)

L+

4.00

%

8.77

%

8/14/2019

8/14/2026

967,500

965,978

948,150

Consumer Goods: Durable

 

  

 

Careismatic

 

  

 

Senior Secured Initial Term Loan (First Lien)

 

L+

 

3.25

%  

8.02

%  

1/22/2021

 

1/6/2028

 

492,500

 

491,455

 

472,800

Total Bank Loans

$

424,399,110

$

417,174,660

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

25

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f)

    

Footnote Reference

    

Investment Type

    

Index (Ù)

    

Spread

    

Interest Rate

    

Acquisition Date

    

Maturity Date

    

Par/Shares

    

Amortized Cost

    

Market Value

EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS- (0.9%) (g) (h):

  

  

  

  

  

  

  

  

  

  

 

Services: Business

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

InnovateMR

 

(i) (p) (q)

 

Class A Units

 

12/16/2021

 

 

387.31

 

$

387,311

 

$

503,132

Industrial Services Group

 

(i) (p) (r)

 

Class A Units

 

12/7/2022

 

 

238.10

 

238,095

 

  

238,095

Liberty Group

 

(i) (p) (s)

 

Series A-Preferred Units

 

6/6/2022

 

 

113,636.36

 

113,636

 

  

151,883

VC3

 

(i) (p) (t)

 

Class A Units

 

9/16/2022

 

 

7,499.03

 

29,846

 

  

29,846

 

 

 

 

 

 

 

  

High Tech Industries

 

 

 

 

 

 

 

  

PracticeTek

 

(i) (p) (u)

 

Class A Units

 

11/22/2021

 

 

344,833.35

 

377,255

 

  

377,815

Golden Source

 

(i) (p) (v)

 

Class A Units

 

3/25/2022

 

 

117,370.89

 

117,371

 

  

180,475

 

 

 

 

 

 

 

  

Healthcare & Pharmaceuticals

 

 

 

 

 

 

 

  

InterMed

 

(i) (p) (w)

 

Class A Units

 

12/22/2022

 

 

2,484.00

 

248,380

 

  

248,380

RevHealth

 

(i) (p) (x)

 

Class A-1 Units

 

7/22/2022

 

 

20,547.95

 

205,479

 

  

200,873

Ivy Rehab

 

(i) (p) (y)

 

Class A Units

 

3/11/2022

 

 

100.00

 

100,000

 

  

74,010

 

 

 

 

 

 

 

  

Beverage, Food & Tobacco

 

 

 

 

 

 

 

  

Hissho Sushi

 

(i) (p) (z)

 

Class A Units

 

4/7/2022

 

 

25,000.00

 

250,000

 

  

317,845

 

 

 

 

 

 

 

  

Environmental Industries

 

 

 

 

 

 

 

  

Alliance Environmental Group

 

(i) (p) (aa)

 

A-1 Preferred Units

 

9/30/2019

 

 

331.13

 

331,126

 

  

311,970

 

 

 

 

 

 

 

  

Construction & Building

 

 

 

 

 

 

 

  

A1 Garage Door Service

(i) (p) (ab)

Class A Common Units

12/22/2022

272.73

272,727

272,727

 

 

 

 

 

 

 

  

Services: Consumer

 

 

 

 

 

 

 

  

Ned Stevens

 

(i) (p) (ac)

 

Class B Common Units

 

11/1/2022

 

 

261.44

 

261,438

 

  

261,438

 

 

 

 

 

 

 

  

Chemicals, Plastics & Rubber

 

 

 

 

 

 

 

  

Vertellus

 

(i) (p) (ad)

 

Series A Units

 

12/22/2020

 

 

1,651.00

 

165,138

 

  

253,318

 

 

 

 

 

 

 

  

Banking, Finance, Insurance & Real Estate

 

 

 

 

 

 

 

  

Cherry Bekaert

 

(i) (p) (ae)

 

Class A Units

 

6/30/2022

 

 

129,870.13

 

129,870

 

  

159,143

 

 

 

 

 

 

 

  

Media: Advertising, Printing & Publishing

MediaRadar

 

(i) (p) (af)

 

Class A-1 Units

 

9/16/2022

 

 

74,074.07

 

74,074

 

  

73,048

Total Equity and Preferred Shares

$

3,301,746

$

3,653,998

Total Portfolio Investments (ag)

$

427,700,856

$

420,828,658

(Ù)

The majority of the investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) or Secured Overnight Financing Rate (“SOFR” or “S”).

(a)All companies are located in the United States of America, unless otherwise noted.
(b)Interest rate percentages represent actual interest rates as of December 31, 2022, which are indexed to the noted reference rate. The referenced rates are subject to interest floors which can vary based on contractual agreements with the borrower.
(c)All loans are income-producing, unless otherwise noted.
(d)All investments are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”) unless otherwise noted.

26

(e)All investments are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act.
(f)Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the FASB Accounting Standard Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
(g)Percentages are calculated using fair value of investments over net assets.
(h)As defined in 1940 Act, the Company is not deemed to be an “Affiliated Person” of or “Control” this portfolio company because it neither owns 5% or more of the portfolio company’s outstanding voting securities nor has the power to exercise control over the management or policies of such portfolio company (including through a management agreement).
(i)The negative cost, if applicable, is the result of the capitalized discount being greater than the principal amount outstanding on the unfunded loan commitment.
(j)Three of our affiliated funds, Audax Direct Lending Solutions Fund - A, L.P., Audax Direct Lending Solutions Fund - C, L.P., and Audax Direct Lending Solutions Fund - D, L.P., co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.
(k)(j)Investment was valued using Level 2 inputs within the ASC 820 fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
(l)(k)The Company headquarters for UDG is located in Ireland.
(l)All or portion of this security has an open position related to short-term borrowings, as described in footnote 8.
(m)The Company purchased the investment, pursuant to a repurchase agreement with a rate of 1.9626 basis points per day with Macquarie US Trading LLC, dated June 21, 2022, due June 16, 2023.
(n)The Company purchased the investment, pursuant to a repurchase agreement with a rate of 1.9530 bais points per day with Macquarie US Trading LLC, dated July 19, 2022, due June 12, 2023.
(o)The Company headquarters for Sophos is located in United Kingdom.
(p)(n)The Company headquarters for Intertape Polymer is located in Canada.
(q)(o)The Company headquarters for Integro is located in the United Kingdom.
(r)(p)Investment is on non-accrual
(s)Investment is non-income producing.
(t)(q)Represents an investment in APD INN Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(u)(r)Represents an investment in APD ISG Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(v)(s)Represents an investment in APD TLG Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(w)(t)Represents an investment in APD VC3 Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(x)(u)Represents an investment in APD Ptek Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(y)(v)Represents an investment in APD Gol Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(z)(w)Represents an investment in APD IMD Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(aa)(x)Represents an investment in APD RH Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(ab)(y)Represents an investment in APD IVY Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(ac)(z)Represents an investment in APD Sush Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(ad)Represents an investment in APD AEG Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(ae)Represents an investment in ADP VERT Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(af)Represents an investment in APD GAR Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(ag)Represents an investment in APD NS Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(ah)Represents an investment in APD CBA Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(ai)Represents an investment in APD MDR Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(aj)At March 31, 2023, the cost of investments for income tax purposes was $406,272,865, the gross unrealized depreciation for federal tax purposes was $9,776,480, the gross unrealized appreciation for federal income tax purposes was $2,347,555, and the net unrealized depreciation was $7,428,925.

(aa)Represents an investment in APD AEG Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.

The accompanying notes are(ab)Represents an integral part of these financial statements.investment in APD GAR Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.


(ac)Represents an investment in APD NS Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.

Audax Credit BDC Inc.(ad)Represents an investment in ADP VERT Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.

Schedule of Investments(ae)Represents an investment in APD CBA Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.

As of December 31, 2022

(Expressed(af)Represents an investment in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f) Acquisition
Date
 Par  Cost  Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS - (97.4%)(g)(h):              
               
Healthcare & Pharmaceuticals              
American Vision Partners, Unitranche Initial Term Loan, 10.52% (LIBOR + 5.75%), maturity 9/30/27 (i) 9/22/2021 $4,948,401  $4,879,828  $4,856,470 
RevHealth, Unitranche Initial Term Loan, 10.34% (SOFR + 5.75%), maturity 7/22/28 (i) 7/22/2022  4,270,120   4,188,380   4,150,791 
Radiology Partners, Senior Secured Term B Loan (First Lien), 9.02% (LIBOR + 4.25%), maturity 7/9/25 6/28/2018  4,215,792   4,360,152   3,863,383 
Young Innovations, Senior Secured Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 11/7/24 11/6/2017  3,716,210   3,710,302   3,674,403 
PharMedQuest, Unitranche Term A Loan, 10.09% (SOFR + 5.50%), maturity 11/6/24 (i) 11/6/2019  3,280,898   3,270,149   3,273,829 
Zest Dental, Senior Secured Initial Term Loan (First Lien), 8.27% (LIBOR + 3.50%), maturity 3/14/25 (j) 5/30/2018  3,222,954   3,231,080   3,222,954 
InHealth Medical Alliance, Unitranche Initial Term Loan, 8.09% (SOFR + 3.50%) 3.50% PIK, maturity 6/28/28 6/25/2021  3,473,575   3,444,004   3,126,218 
InterMed, Unitranche Initial Term Loan, 11.09% (SOFR + 6.50%), maturity 12/24/29 (i) (j) 12/22/2022  3,023,758   2,937,365   2,948,164 
Waystar, Senior Secured Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 10/22/26 9/19/2019  2,919,950   2,914,826   2,905,350 
Advancing Eyecare, Senior Secured Initial Term Loan, 10.34% (SOFR + 5.75%), maturity 6/29/29 5/27/2022  2,531,655   2,465,757   2,525,326 
Premise Health, Senior Secured Initial Term Loan (First Lien), 8.09% (SOFR + 3.50%), maturity 7/10/25 8/15/2018  2,259,008   2,262,783   2,253,361 
Soliant, Senior Secured Initial Term Loan, 8.77% (LIBOR + 4.00%), maturity 3/31/28 3/26/2021  2,115,249   2,100,146   2,115,249 
nThrive, Senior Secured Initial Loan (Second Lien), 11.52% (LIBOR + 6.75%), maturity 12/17/29 11/19/2021  2,000,000   1,975,615   1,977,500 
CPS, Unitranche Closing Date Term Loan, 10.52% (LIBOR + 5.75%), maturity 6/1/28 (i) 5/18/2022  1,953,546   1,948,936   1,945,105 
Gastro Health, Senior Secured Initial Term Loan (First Lien), 9.27% (LIBOR + 4.50%), maturity 7/3/28 7/2/2021  1,974,288   1,964,641   1,919,995 
Upstream Rehabilitation, Senior Secured August 2021 Incremental Term Loan (First Lien), 8.84% (SOFR + 4.25%), maturity 11/20/26 10/24/2019  1,951,531   1,949,032   1,917,379 
Avalign Technologies, Senior Secured Initial Term Loan (First Lien), 9.09% (SOFR + 4.50%), maturity 12/22/25 12/19/2018  1,920,000   1,916,944   1,886,400 
Therapy Brands, Senior Secured Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 5/18/28 5/12/2021  1,863,262   1,855,208   1,835,313 
Advanced Diabetes Supply, Senior Secured First Incremental Term Loan, 9.84% (SOFR + 5.25%), maturity 12/30/27 7/13/2021  1,853,637   1,837,653   1,835,101 
Press Ganey, Senior Secured Initial Term Loan (First Lien), 8.27% (LIBOR + 3.50%), maturity 7/24/26 (j) 7/23/2019  1,935,000   1,938,010   1,778,391 
Blue Cloud, Unitranche Closing Date Term Loan, 9.59% (SOFR + 5.00%), maturity 1/21/28 12/13/2021  1,488,750   1,467,872   1,470,141 
Quantum Health, Senior Secured Amendment No. 1 Refinancing Term Loan (First Lien), 9.27% (LIBOR + 4.50%), maturity 12/22/27 12/18/2020  1,477,500   1,459,860   1,460,878 
Mission Vet Partners, Senior Secured Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 4/27/28 12/15/2021  1,481,250   1,468,364   1,447,922 
Symplr, Senior Secured Initial Term Loan (First Lien), 9.09% (SOFR + 4.50%), maturity 12/22/27 11/23/2020  1,473,750   1,456,190   1,342,955 
Ivy Rehab, Senior Secured Initial Term Loan (First Lien), 9.34% (SOFR + 4.75%), maturity 4/23/29 3/11/2022  1,147,092   1,124,711   1,132,753 
Solis Mammography, Senior Secured Initial Term Loan (First Lien), 9.52% (LIBOR + 4.75%), maturity 4/17/28 4/1/2021  1,069,941   1,061,811   1,061,916 
Tecomet, Senior Secured 2017 Term Loan (First Lien), 8.27% (LIBOR + 3.50%), maturity 5/1/24 1/10/2019  1,143,735   1,143,669   1,034,162 
Solis Mammography, Senior Secured Initial Term Loan (Second Lien), 12.77% (LIBOR + 8.00%), maturity 4/16/29 4/1/2021  1,000,000   987,505   992,500 
Micro Merchant Systems, Unitranche Initial Term Loan, 10.34% (SOFR + 5.75%), maturity 12/14/27 3/2/2022  992,500   982,465   990,019 
Wedgewood, Senior Secured Initial Term Loan, 9.02% (LIBOR + 4.25%), maturity 3/31/28 2/24/2021  987,500   979,070   987,500 
nThrive, Senior Secured Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 12/18/28 11/19/2021  992,500   988,500   982,575 
Allied Benefit Systems, Senior Secured Initial Term B Loan, 9.27% (LIBOR + 4.50%), maturity 11/18/26 10/21/2020  980,000   969,646   980,000 
Forefront, Senior Secured Closing Date Term Loan, 8.84% (SOFR + 4.25%), maturity 4/1/29 3/23/2022  978,236   962,181   968,454 
Epic Staffing Group, Senior Secured Initial Term Loan, 10.59% (SOFR + 6.00%), maturity 6/28/29 6/27/2022  821,454   763,696   819,400 
UDG, Senior Secured Initial Dollar Term Loan (First Lien), 9.02% (LIBOR + 4.25%), maturity 8/19/28 (k) 8/6/2021  631,875   626,966   624,766 
ImageFirst, Senior Secured Initial Term Loan, 9.27% (LIBOR + 4.50%), maturity 4/27/28 4/26/2021  604,773   602,336   600,237 
MyEyeDr, Senior Secured Initial Term Loan (First Lien), 9.02% (LIBOR + 4.25%), maturity 8/31/26 8/2/2019  521,312   518,666   515,447 
Western Dental, Senior Secured 2022 Incremental Term Loan, 10.02% (LIBOR + 5.25%), maturity 8/18/28 6/21/2022  497,500   488,274   485,063 
AccentCare, Senior Secured 2021 Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 6/22/26 6/15/2021  492,500   492,500   480,188 
MedRisk, Senior Secured Initial Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 5/10/28 (j) 4/1/2021  493,750   489,558   467,334 
RMP & MedA/Rx, Senior Secured Term Loan, 9.27% (LIBOR + 4.50%), maturity 2/6/25 3/22/2021  465,625   462,043   462,133 
Press Ganey, Senior Secured 2020 Incremental Term Loan (First Lien) Retired 05/25/2021, 8.52% (LIBOR + 3.75%), maturity 7/24/26 (j) 10/1/2020  491,269   487,720   451,508 
RMP & MedA/Rx, Senior Secured Term Loan (First Lien), 9.02% (LIBOR + 4.25%), maturity 2/6/25 2/27/2017  397,482   397,490   394,501 
Blue Cloud, Senior Secured Revolving Loan, 9.59% (SOFR + 5.00%), maturity 1/21/28 12/14/2022  50,000   50,000   49,375 
CPS, Senior Secured Revolving Credit Loan, 10.52% (LIBOR + 5.75%), maturity 6/1/28 (i) 5/18/2022  -   (714)  - 
Ivy Rehab, Senior Secured Revolving Credit Loan (First Lien), 9.34% (SOFR + 4.75%), maturity 4/21/28 3/11/2022  -   (3,367)  - 
InterMed, Senior Secured Revolving Loan, 11.09% (SOFR + 6.50%), maturity 12/24/28 (i) (j) 12/22/2022  -   (21,598)  - 
               
Services: Business              
LegalShield, Senior Secured Initial Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 12/15/28 (j) 12/7/2021  4,466,250   4,426,965   4,305,152 
InnovateMR, Unitranche Initial Term Loan, 10.27% (LIBOR + 5.50%), maturity 1/20/28 (i) 12/16/2021  4,200,101   4,134,245   4,200,101 
CoAdvantage, Senior Secured Initial Term Loan (First Lien), 9.77% (LIBOR + 5.00%), maturity 9/23/25 (l) 9/26/2019  3,870,000   3,849,940   3,870,000 
RevSpring, Senior Secured Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 10/11/25 (l) 10/5/2018  3,840,000   3,837,742   3,840,000 
Eliassen, Unitranche Initial Term Loan, 10.34% (SOFR + 5.75%), maturity 4/7/28 3/31/2022  3,361,944   3,309,152   3,345,135 
Veritext, Senior Secured Initial Term Loan (First Lien), 8.27% (LIBOR + 3.50%), maturity 8/1/25 (j) 8/14/2018  3,079,058   3,064,961   3,079,058 
Discovery Education, Unitranche Initial Term Loan (First Lien), 10.34% (SOFR + 5.75%), maturity 4/6/29 3/25/2022  2,992,500   2,945,651   2,970,056 
Fleetwash, Senior Secured Incremental Term Loan, 9.34% (SOFR + 4.75%), maturity 10/1/24 9/25/2018  2,873,288   2,863,535   2,851,738 
The Facilities Group, Unitranche Initial Term Loan, 10.52% (LIBOR + 5.75%), maturity 11/30/27 12/10/2021  2,726,358   2,700,991   2,705,911 
Industrial Services Group, Unitranche First Lien Term Loan, 10.84% (SOFR + 6.25%), maturity 12/7/28 (i) 12/7/2022  2,761,905   2,657,619   2,640,476 
CoolSys, Senior Secured Closing Date Initial Term Loan, 9.52% (LIBOR + 4.75%), maturity 8/11/28 8/4/2021  2,564,375   2,538,048   2,513,088 
Service Logic, Senior Secured Closing Date Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 10/29/27 10/23/2020  2,535,569   2,516,126   2,510,213 
Duff & Phelps, Senior Secured Initial Dollar Term Loan (First Lien), 8.34% (SOFR + 3.75%), maturity 4/9/27 (j) 3/6/2020  2,437,500   2,422,596   2,282,499 
TRC Companies, Senior Secured Initial Term Loan (Second Lien), 11.52% (LIBOR + 6.75%), maturity 12/7/29 11/19/2021  2,000,000   1,980,000   1,980,000 
Liberty Group, Unitranche Initial Term Loan, 10.34% (SOFR + 5.75%), maturity 6/9/28 (i) 6/6/2022  1,945,114   1,906,873   1,919,735 
Veregy, Senior Secured Initial Term Loan, 10.77% (LIBOR + 6.00%), maturity 11/3/27 11/2/2020  1,960,000   1,916,318   1,911,000 
InnovateMR, Senior Secured First Amendment Term Loan, 10.09% (SOFR + 5.50%), maturity 1/20/28 (i) 12/23/2022  1,891,019   1,832,654   1,891,019 
ECi Software, Senior Secured Initial Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 11/9/27 (j) 9/17/2020  1,960,000   1,953,585   1,886,500 
Mediaocean, Senior Secured Initial Term Loan, 8.27% (LIBOR + 3.50%), maturity 12/15/28 (j) 12/9/2021  1,985,000   1,967,596   1,822,726 
Insight Global, Unitranche Closing Date Term Loan, 10.77% (LIBOR + 6.00%), maturity 9/22/28 9/22/2021  1,481,250   1,454,671   1,481,250 
Addison Group, Senior Secured Initial Term Loan, 8.84% (SOFR + 4.25%), maturity 12/29/28 1/19/2022  1,488,750   1,485,425   1,477,584 

The accompanying notes areAPD MDR Equity, L.P., a holding company, made through an integral part of these financial statements.


Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f) Acquisition
Date
 Par  Cost  Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS(h) (Continued):              
               
Services: Business (continued)              
OSG Billing Services, Senior Secured Amended and Restated Term A Loan, 10.09% (SOFR + 5.50%) 1.50% PIK, maturity 6/26/26 8/31/2022 $1,442,041  $1,440,308  $1,355,519 
First Advantage, Senior Secured Term B-1 Loan (First Lien), 7.52% (LIBOR + 2.75%), maturity 1/31/27 (j) 1/23/2020  1,100,312   1,091,680   1,082,432 
Veritext, Senior Secured Initial Term Loan (Second Lien), 11.52% (LIBOR + 6.75%), maturity 7/31/26 (j) 8/14/2018  1,000,000   997,283   1,000,000 
Vistage, Senior Secured Initial Term Loan, 9.84% (SOFR + 5.25%), maturity 7/13/29 7/18/2022  997,500   971,265   992,513 
trustaff, Senior Secured Initial Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 3/6/28 12/9/2021  987,437   985,293   987,437 
TRC Companies, Senior Secured Initial Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 12/8/28 11/19/2021  992,513   988,187   985,069 
Divisions Maintenance Group, Senior Secured Term B Loan, 9.52% (LIBOR + 4.75%), maturity 5/27/28 5/21/2021  987,500   979,366   985,031 
Secretariat International, Senior Secured Initial Term Loan (First Lien), 9.52% (LIBOR + 4.75%), maturity 12/29/28 12/16/2021  975,711   971,287   965,953 
WIRB-Copernicus Group, Senior Secured Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 1/8/27 12/13/2019  975,000   968,894   965,250 
Diversified, Senior Secured Initial Term Loan, 9.59% (SOFR + 5.00%), maturity 12/23/23 4/19/2019  899,347   897,624   870,118 
eResearch, Senior Secured Initial Term Loan (First Lien), 9.27% (LIBOR + 4.50%), maturity 2/4/27 (j) 12/1/2020  979,906   979,906   867,520 
VC3, Unitranche, 9.84% (SOFR + 5.25%), maturity 3/12/27 (i) 9/16/2022  742,423   694,346   702,569 
Therma Holdings, Senior Secured Initial Term Loan (2021), 8.52% (LIBOR + 3.75%), maturity 12/16/27 (j) 12/11/2020  590,428   588,526   560,541 
System One, Senior Secured Initial Term Loan, 8.59% (SOFR + 4.00%), maturity 3/2/28 1/28/2021  492,500   490,627   490,038 
Insight Global, Senior Secured Revolving Loan, 10.77% (LIBOR + 6.00%), maturity 9/22/27 9/23/2021  53,671   53,671   53,671 
VC3, Senior Secured Revolving Credit, 9.84% (SOFR + 5.25%), maturity 3/12/27 (i) 7/21/2022  -   (2,692)  - 
Discovery Education, Senior Secured Revolving Credit Loan (First Lien), 10.34% (SOFR + 5.75%), maturity 4/7/28 3/25/2022  -   (4,038)  - 
Liberty Group, Senior Secured Revolving Loan, 10.34% (SOFR + 5.75%), maturity 6/9/28 (i) 6/6/2022  -   (4,545)  - 
Industrial Services Group, Senior Secured Revolver, 10.84% (SOFR + 6.25%), maturity 12/7/28 (i) 12/7/2022  -   (17,143)  - 
               
High Tech Industries              
Qlik, Senior Secured 2021 Refinancing Term Loan, 8.77% (LIBOR + 4.00%), maturity 4/26/24 (j) (l) 3/29/2019  3,861,200   3,852,597   3,776,254 
Golden Source, Unitranche Initial Term Loan, 10.09% (SOFR + 5.50%), maturity 5/12/28 (i) 3/25/2022  3,454,402   3,380,910   3,341,463 
Netsmart, Senior Secured Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 10/1/27 (j) 9/29/2020  3,438,750   3,427,753   3,320,543 
Jaggaer, Senior Secured Initial Term Loan (First Lien), 8.34% (SOFR + 3.75%), maturity 8/14/26 (j) 8/9/2019  3,059,478   3,056,395   2,980,314 
Infogroup, Senior Secured Term Loan (First Lien), 9.77% (LIBOR + 5.00%), maturity 4/3/23 (j) 3/28/2017  2,829,862   2,826,938   2,829,862 
Planview, Senior Secured Closing Date Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 12/17/27 12/11/2020  2,605,701   2,583,676   2,504,958 
Idera, Senior Secured Term B-1 Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 3/2/28 (j) 6/27/2017  2,573,127   2,573,136   2,433,214 
Ivanti Software, Senior Secured 2021 Specified Refinancing Term Loan (First Lien), 9.02% (LIBOR + 4.25%), maturity 12/1/27 (j) 11/20/2020  2,962,613   2,931,550   2,359,291 
PracticeTek, Unitranche Initial Term Loan, 11.02% (LIBOR + 6.25%), maturity 11/23/27 (i) 11/22/2021  2,382,968   2,329,122   2,299,688 
Precisely, Senior Secured Third Amendment Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 4/24/28 3/19/2021  2,468,750   2,457,445   2,299,440 
Flexera, Senior Secured Term B-1 Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 3/3/28 (j) 2/16/2020  2,358,160   2,358,160   2,268,998 
Barracuda, Senior Secured Initial Term Loan (Second Lien), 11.59% (SOFR + 7.00%), maturity 5/31/30 5/17/2022  2,000,000   1,940,000   1,977,500 
QuickBase, Senior Secured Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 4/2/26 3/29/2019  1,930,000   1,925,451   1,905,875 
Sophos, Senior Secured Dollar Tranche Term Loan (First Lien), 8.27% (LIBOR + 3.50%), maturity 3/5/27 (j) (n) 1/16/2020  1,950,024   1,877,853   1,895,706 
Intermedia, Senior Secured New Term Loan (First Lien), 10.77% (LIBOR + 6.00%), maturity 7/21/25 7/13/2018  1,920,000   1,913,976   1,881,600 
HelpSystems, Senior Secured Term Loan, 8.59% (SOFR + 4.00%), maturity 11/19/26 12/19/2019  1,969,727   1,963,923   1,870,502 
Bomgar, Senior Secured Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 4/18/25 5/25/2018  1,610,595   1,615,029   1,598,516 
OEConnection, Senior Secured Initial Term Loan, 8.77% (LIBOR + 4.00%), maturity 9/25/26 9/24/2019  1,592,260   1,588,315   1,584,299 
Digital Room, Senior Secured Closing Date Term Loan (First Lien), 10.02% (LIBOR + 5.25%), maturity 12/21/28 12/16/2021  1,488,750   1,475,605   1,473,863 
SmartBear, Senior Secured Initial Term Loan (First Lien), 9.02% (LIBOR + 4.25%), maturity 3/3/28 11/20/2020  985,000   976,981   980,075 
WellSky, Senior Secured Incremental Term B-1 Loan (First Lien), 10.34% (SOFR + 5.75%), maturity 3/10/28 8/16/2022  997,500   968,858   975,056 
ORBCOMM, Senior Secured Closing Date Term Loan (First Lien), 9.02% (LIBOR + 4.25%), maturity 9/1/28 6/17/2021  987,500   983,149   955,406 
Imperva, Senior Secured Term Loan, 8.77% (LIBOR + 4.00%), maturity 1/12/26 9/23/2020  975,981   970,223   949,142 
Infoblox, Senior Secured Initial Term Loan (First Lien), 8.34% (SOFR + 3.75%), maturity 12/1/27 (j) 10/7/2020  985,000   981,549   913,095 
Cloudera, Senior Secured Initial Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 10/8/28 8/10/2021  496,250   491,967   492,528 
Barracuda, Senior Secured Initial Term Loan (First Lien), 9.09% (SOFR + 4.50%), maturity 5/31/29 (j) 5/17/2022  500,000   485,490   483,055 
DigiCert, Senior Secured Initial Term Loan (First Lien), 8.59% (SOFR + 4.00%), maturity 10/16/26 (j) 3/13/2020  486,250   469,111   470,795 
PracticeTek, Senior Secured Revolving Loan, 11.02% (LIBOR + 6.25%), maturity 11/23/27 (i) 11/22/2021  -   (7,156)  - 
Golden Source, Senior Secured Revolving Loan, 10.09% (SOFR + 5.50%), maturity 5/12/28 (i) 8/22/2022  -   (9,390)  - 
               
Containers, Packaging & Glass              
InMark, Unitranche Incremental Term Loan, 10.59% (SOFR + 6.00%), maturity 12/23/26 (i) 12/10/2021  6,419,952   6,305,403   6,419,952 
Transcendia, Senior Secured 2017 Refinancing Term Loan (First Lien), 8.27% (LIBOR + 3.50%), maturity 5/30/24 5/11/2017  3,318,093   3,313,837   3,226,846 
Brook & Whittle, Senior Secured Initial Term Loan (First Lien), 8.59% (SOFR + 4.00%), maturity 12/14/28 12/9/2021  3,131,265   3,107,930   3,131,265 
Anchor Packaging, Senior Secured Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 7/18/26 7/17/2019  2,490,744   2,482,832   2,490,744 
PCI, Senior Secured Term B Loan (First Lien), 8.27% (LIBOR + 3.50%), maturity 11/30/27 (j) 9/25/2020  2,443,938   2,436,928   2,323,928 
Paragon Films, Senior Secured Closing Date Term Loan (First Lien), 9.77% (LIBOR + 5.00%), maturity 12/16/28 12/15/2021  1,985,000   1,966,087   1,975,075 
Intertape Polymer, Senior Secured Initial Term Loan (First Lien), 9.34% (SOFR + 4.75%), maturity 6/28/28 (o) 6/15/2022  1,995,000   1,921,340   1,899,699 
Resource Label Group, Senior Secured Closing Date Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 7/7/28 7/2/2021  1,860,949   1,852,924   1,860,949 
TricorBraun, Senior Secured Closing Date Initial Term Loan (First Lien), 8.02% (LIBOR + 3.25%), maturity 3/3/28 (j) 1/29/2021  1,810,382   1,802,881   1,731,648 
Potters Industries, Senior Secured Initial Term Loan, 8.77% (LIBOR + 4.00%), maturity 12/14/27 11/19/2020  1,473,750   1,463,413   1,462,697 
Technimark, Senior Secured Initial Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 7/7/28 6/30/2021  1,477,500   1,471,343   1,444,256 
Tekni-Plex, Senior Secured Tranche B-3 Initial Term Loan, 8.77% (LIBOR + 4.00%), maturity 9/15/28 (j) 7/29/2021  1,128,183   1,125,889   1,086,079 
Lacerta, Senior Secured Term Loan, 10.27% (LIBOR + 5.50%), maturity 12/30/26 2/8/2021  980,000   971,686   970,200 
Novolex, Senior Secured Term B Loan (First Lien), 8.84% (SOFR + 4.25%), maturity 4/13/29 (j) 3/30/2022  995,000   972,844   950,101 
Pregis, Senior Secured Initial Term Loan (First Lien), 8.34% (SOFR + 3.75%), maturity 7/31/26 (j) 7/25/2019  970,000   968,670   945,386 
Applied Adhesives, Senior Secured Term A Loan, 9.52% (LIBOR + 4.75%), maturity 3/12/27 3/12/2021  593,430   588,737   591,946 
Five Star Packaging, Senior Secured Initial Term Loan (First Lien), 8.84% (SOFR + 4.25%), maturity 5/5/29 4/27/2022  498,750   491,854   495,009 
Pregis, Senior Secured Third Amendment Refinancing Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 7/31/26 12/9/2020  493,750   492,024   492,516 
Golden West Packaging, Senior Secured Initial Term Loan, 10.02% (LIBOR + 5.25%), maturity 12/1/27 11/29/2021  490,625   486,330   489,398 
Applied Adhesives, Senior Secured Revolving Loan, 9.52% (LIBOR + 4.75%), maturity 3/12/27 3/12/2021  -   (616)  - 

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

12

Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f) Acquisition
Date
 Par  Cost  Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS(h) (Continued):              
               
Banking, Finance, Insurance & Real Estate              
Cerity Partners, Senior Secured Initial Term Loan, 10.34% (SOFR + 5.75%), maturity 7/27/29 (i) 7/28/2022 $4,647,849  $4,574,823  $4,570,390 
Confluence, Senior Secured Initial Term Loan (First Lien), 8.34% (SOFR + 3.75%), maturity 7/31/28 7/22/2021  3,960,000   3,941,319   3,915,450 
Cherry Bekaert, Unitranche Term B Loan, 10.09% (SOFR + 5.50%), maturity 6/30/28 (i) 6/13/2022  3,550,571   3,464,800   3,479,035 
Ascensus, Senior Secured Initial Term Loan (First Lien), 8.27% (LIBOR + 3.50%), maturity 8/2/28 11/17/2021  2,977,500   2,965,493   2,917,950 
Alera, Unitranche 2022 Incremental Term Loan, 11.09% (SOFR + 6.50%), maturity 9/30/28 8/31/2022  2,819,600   2,740,779   2,798,453 
EPIC Insurance, Unitranche Closing Date Term Loan, 10.02% (LIBOR + 5.25%), maturity 9/29/28 8/27/2021  2,371,834   2,338,982   2,359,975 
American Beacon Advisors, Senior Secured Tranche D Term Loan (Second Lien), 12.77% (LIBOR + 8.00%), maturity 4/30/25 10/31/2017  2,117,133   2,121,970   2,093,316 
Beta+, Senior Secured Initial Term Loan, 9.84% (SOFR + 5.25%), maturity 7/1/29 6/24/2022  1,995,000   1,956,752   1,985,025 
Kestra Financial, Senior Secured Initial Term Loan, 8.84% (SOFR + 4.25%), maturity 6/3/26 4/29/2019  1,935,000   1,924,606   1,920,488 
Orion, Senior Secured 2021 Refinancing Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 9/24/27 8/4/2020  1,470,065   1,458,041   1,393,806 
SIAA, Unitranche Initial Term Loan, 11.02% (LIBOR + 6.25%), maturity 4/28/28 4/21/2021  1,160,762   1,142,944   1,140,125 
Advisor Group, Senior Secured Term B-1 Loan, 9.27% (LIBOR + 4.50%), maturity 7/31/26 (j) 1/31/2020  1,018,929   1,018,969   998,780 
Community Brands, Senior Secured Initial Term Loan, 10.34% (SOFR + 5.75%), maturity 2/24/28 2/23/2022  992,500   972,300   982,575 
LERETA, Senior Secured Initial Term Loan, 10.02% (LIBOR + 5.25%), maturity 7/30/28 7/27/2021  987,500   978,810   972,688 
Sedgwick Claims, Senior Secured Initial Term Loan, 8.02% (LIBOR + 3.25%), maturity 12/31/25 (j) 2/12/2020  484,848   484,476   472,424 
EdgeCo, Senior Secured Third Amendment Term Loan (First Lien), 9.52% (LIBOR + 4.75%), maturity 6/1/26 3/29/2022  297,750   275,745   295,517 
Integro, Senior Secured 2022 Refinancing Term Loan (First Lien), 12.25% (Fixed) 12.25% PIK, maturity 5/8/23 (n) 10/9/2015  228,698   232,323   228,698 
Cherry Bekaert, Senior Secured Revolving Credit Loan, 10.09% (SOFR + 5.50%), maturity 6/30/28 (i) 8/1/2022  184,942   184,942   181,215 
EPIC Insurance, Senior Secured Revolving Loan, 10.02% (LIBOR + 5.25%), maturity 9/30/27 8/27/2021  -   (269)  - 
Beta+, Senior Secured Revolving Credit Loan, 9.84% (SOFR + 5.25%), maturity 7/1/27 6/24/2022  -   (6,216)  - 
               
Capital Equipment              
FloWorks, Senior Secured Initial Term Loan (First Lien), 10.34% (SOFR + 5.75%), maturity 12/27/28 (j) 3/1/2022  3,980,000   3,856,250   3,980,000 
Tank Holding, Unitranche Initial Term Loan, 10.59% (SOFR + 6.00%), maturity 3/31/28 (m) 3/25/2022  3,980,000   3,907,511   3,970,050 
Plaskolite, Senior Secured 2021-1 Refinancing Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 12/15/25 12/12/2018  3,841,575   3,807,287   3,624,046 
Excelitas, Senior Secured Closing Date Euro Term Loan, 10.52% (Other + 5.75%), maturity 8/12/29 6/15/2022  2,969,565   3,013,358   2,947,293 
Burke Porter Group, Unitranche Closing Date Term Loan, 10.59% (SOFR + 6.00%), maturity 7/29/29 (i) 9/30/2022  2,333,333   2,271,028   2,310,000 
MW Industries, Senior Secured 2018 New Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 9/30/24 (j) 4/20/2018  2,037,048   2,037,048   2,037,048 
Flow Control Group, Senior Secured Initial Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 3/31/28 (j) 3/17/2021  1,666,204   1,663,888   1,588,626 
Radwell, Unitranche Initial Term Loan, 10.34% (SOFR + 5.75%), maturity 4/1/29 3/11/2022  1,492,500   1,469,422   1,492,500 
Edward Don, Senior Secured Initial Term Loan, 9.02% (LIBOR + 4.25%), maturity 7/2/25 6/26/2018  1,370,943   1,369,445   1,350,378 
Therm-O-Disc, Senior Secured Initial Term Loan (First Lien), 10.59% (SOFR + 6.00%), maturity 5/31/29 5/26/2022  997,500   923,600   992,513 
Cleaver Brooks, Senior Secured Initial Term Loan, 10.34% (SOFR + 5.75%), maturity 7/31/28 7/18/2022  993,750   974,648   988,781 
TriMark, Senior Secured Second Amendment Tranche B Loan (Super Senior Priority), 8.27% (LIBOR + 3.50%), maturity 8/28/24 1/31/2022  963,589   963,589   684,148 
Culligan, Senior Secured 2022 Refinancing Term B Loan, 8.52% (LIBOR + 3.75%), maturity 7/31/28 (j) 6/17/2021  559,688   556,920   528,555 
Infinite Electronics, Senior Secured Initial Term Loan (First Lien), 8.02% (LIBOR + 3.25%), maturity 3/2/28 2/24/2021  492,500   491,568   491,269 
Duravant, Senior Secured Incremental Amendment No. 5 Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 5/19/28 (j) 3/5/2020  487,500   487,500   472,799 
SPX Flow, Senior Secured Term Loan, 9.09% (SOFR + 4.50%), maturity 4/5/29 (j) 3/18/2022  498,750   478,053   467,134 
Burke Porter Group, Senior Secured Revolving Credit Loan, 10.59% (SOFR + 6.00%), maturity 7/29/28 (i) 8/11/2022  54,991   44,586   54,441 
Tank Holding, Senior Secured Revolving Credit Loan, 10.59% (SOFR + 6.00%), maturity 3/31/28 3/25/2022  24,615   21,662   24,554 
Cleaver Brooks, Senior Secured Revolving Loan, 10.34% (SOFR + 5.75%), maturity 7/31/28 7/21/2022  15,385   12,923   15,308 
Radwell, Senior Secured Revolving Loan, 10.34% (SOFR + 5.75%), maturity 4/1/28 3/11/2022  -   (1,200)  - 
               
Aerospace & Defense              
HDT Global, Senior Secured Initial Term Loan, 10.52% (LIBOR + 5.75%), maturity 7/8/27 6/30/2021  3,237,500   3,146,132   3,132,281 
StandardAero, Senior Secured 2020 Term B-1 Loan, 8.27% (LIBOR + 3.50%), maturity 4/6/26 (j) 1/24/2019  3,237,691   3,233,062   3,094,520 
CPI International, Senior Secured Initial Term Loan, 10.09% (SOFR + 5.50%), maturity 10/6/29 5/18/2022  3,000,000   2,933,703   2,977,500 
Amentum, Senior Secured Tranche 3 Term Loan (First Lien), 8.59% (SOFR + 4.00%), maturity 2/15/29 2/10/2022  1,990,000   1,980,482   1,990,000 
Consolidated Precision Products, Senior Secured Initial Term Loan (Second Lien), 12.52% (LIBOR + 7.75%), maturity 4/30/26 5/10/2018  2,000,000   2,005,563   1,920,000 
Whitcraft, Unitranche Initial Term Loan, 10.77% (LIBOR + 6.00%), maturity 4/3/23 3/6/2020  1,942,344   1,936,382   1,864,650 
StandardAero, Senior Secured 2020 Term B-2 Loan, 8.27% (LIBOR + 3.50%), maturity 4/6/26 (j) 1/24/2019  1,740,694   1,738,206   1,663,720 
Tronair, Senior Secured Initial Term Loan (First Lien), 10.52% (LIBOR + 5.75%) PIK, maturity 9/8/23 9/30/2016  1,344,845   1,343,776   1,291,051 
Peraton, Senior Secured Term B Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 2/1/28 (j) 2/23/2021  964,612   960,887   943,714 
API Technologies, Senior Secured Initial Term Loan (First Lien), 9.02% (LIBOR + 4.25%), maturity 5/9/26 1/15/2020  969,849   951,105   872,864 
BlueHalo, Unitranche Initial Term Loan, 10.77% (LIBOR + 6.00%), maturity 10/31/25 11/17/2021  494,014   487,514   488,457 
Novaria Group, Senior Secured Initial Term Loan, 10.09% (SOFR + 5.50%), maturity 1/27/27 1/24/2020  481,818   478,783   477,000 
Consolidated Precision Products, Senior Secured Initial Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 4/30/25 7/18/2019  483,082   481,741   463,759 
BlueHalo, Senior Secured Revolving Loan, 10.77% (LIBOR + 6.00%), maturity 10/31/25 11/17/2021  91,486   89,997   90,456 
               
Chemicals, Plastics & Rubber              
DuBois Chemicals, Senior Secured Term Loan (Second Lien) - 2019, 13.27% (LIBOR + 8.50%), maturity 9/30/27 10/8/2019  3,000,000   2,981,878   2,985,000 
Vertellus, Senior Secured Initial Term Loan, 10.34% (SOFR + 5.75%), maturity 12/22/27 12/18/2020  2,962,613   2,902,499   2,910,767 
Spectrum Plastics, Senior Secured Closing Date Term Loan (First Lien), 8.02% (LIBOR + 3.25%), maturity 1/31/25 1/26/2018  2,600,325   2,604,902   2,574,322 
Unifrax, Senior Secured USD Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 12/12/25 (j) 11/5/2018  2,401,203   2,382,882   2,142,329 
Boyd Corp, Senior Secured Initial Loan (Second Lien), 11.52% (LIBOR + 6.75%), maturity 9/6/26 8/16/2018  2,000,000   2,001,368   1,995,000 
USALCO, Unitranche Term Loan A, 10.77% (LIBOR + 6.00%), maturity 10/19/27 10/26/2021  1,980,000   1,962,805   1,960,200 
DuBois Chemicals, Senior Secured Term Loan B (First Lien), 9.27% (LIBOR + 4.50%), maturity 9/30/26 10/8/2019  1,759,343   1,734,161   1,746,148 
Vantage Specialty Chemicals, Senior Secured Closing Date Term Loan (First Lien), 8.27% (LIBOR + 3.50%), maturity 10/28/24 (j) 11/30/2018  957,179   950,212   936,958 
Ascensus Specialties, Senior Secured Initial Term Loan, 9.02% (LIBOR + 4.25%), maturity 6/30/28 12/3/2021  493,722   485,722   488,785 
Boyd Corp, Senior Secured Initial Term Loan (First Lien), 8.27% (LIBOR + 3.50%), maturity 9/6/25 11/7/2018  487,277   469,149   486,059 
Polytek, Senior Secured Term Loan, 10.34% (SOFR + 5.75%), maturity 9/20/24 12/23/2020  490,119   485,649   465,613 
USALCO, Senior Secured Revolving Loan, 10.77% (LIBOR + 6.00%), maturity 10/19/26 10/26/2021  137,097   133,871   135,726 
Vertellus, Senior Secured Revolving Credit Loan, 10.34% (SOFR + 5.75%), maturity 12/22/25 12/18/2020  -   (10,130)  - 

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


Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f) Acquisition
Date
 Par  Cost  Value 
BANK LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS(h) (Continued):              
               
Transportation: Cargo              
Evans Network, Senior Secured Initial Term Loan (First Lien), 9.02% (LIBOR + 4.25%), maturity 8/19/28 8/6/2021 $3,636,735  $3,601,783  $3,636,735 
Capstone Logistics, Senior Secured Closing Date Term Loan (First Lien), 9.52% (LIBOR + 4.75%), maturity 11/12/27 11/12/2020  2,095,641   2,079,357   2,095,641 
AIT Worldwide Logistics, Senior Secured Initial Term Loan (First Lien), 9.52% (LIBOR + 4.75%), maturity 4/6/28 12/9/2021  1,975,000   1,970,660   1,897,545 
St. George Logistics, Senior Secured Initial Term Loan, 10.59% (SOFR + 6.00%), maturity 3/24/26 4/28/2022  1,492,500   1,471,706   1,492,500 
Worldwide Express, Senior Secured Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 7/26/28 (j) 7/23/2021  1,485,000   1,475,223   1,363,831 
FLS Transportation, Senior Secured Term B Loan, 10.02% (LIBOR + 5.25%), maturity 12/15/28 4/14/2022  1,217,391   1,206,381   1,217,391 
Omni Logistics, Senior Secured Initial Term Loan (First Lien), 9.77% (LIBOR + 5.00%), maturity 12/30/26 11/24/2021  1,148,217   1,137,659   1,136,735 
Magnate, Senior Secured Initial Term Loan (First Lien), 10.27% (LIBOR + 5.50%), maturity 12/29/28 3/11/2022  954,107   936,858   954,107 
Odyssey Logistics, Senior Secured New Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 10/12/24 (j) 11/20/2018  4,191   4,183   4,110 
FLS Transportation, Senior Secured Revolving Credit Loan, 10.02% (LIBOR + 5.25%), maturity 12/17/27 4/14/2022  -   (889)  - 
Omni Logistics, Senior Secured Revolving Credit Loan (First Lien), 9.77% (LIBOR + 5.00%), maturity 12/30/25 11/24/2021  -   (1,119)  - 
               
Services: Consumer              
Ned Stevens, Senior Secured Initial Term Loan, 11.34% (SOFR + 6.75%), maturity 11/1/29 (i) 11/1/2022  3,553,922   3,422,937   3,411,765 
A Place For Mom, Senior Secured Term Loan, 9.27% (LIBOR + 4.50%), maturity 2/10/26 7/28/2017  2,208,078   2,208,116   2,163,917 
Smart Start, Senior Secured Term B Loan (Second Lien), 12.52% (LIBOR + 7.75%), maturity 12/16/29 12/10/2021  2,000,000   1,967,924   1,975,000 
Smart Start, Senior Secured Term B Loan (First Lien), 9.27% (LIBOR + 4.50%), maturity 12/16/28 12/10/2021  1,980,000   1,967,493   1,957,725 
FullBloom, Senior Secured Initial Term Loan (First Lien), 8.84% (SOFR + 4.25%), maturity 12/15/28 12/10/2021  1,492,500   1,479,301   1,477,575 
Teaching Strategies, Senior Secured Initial Term Loan (First Lien), 8.34% (SOFR + 3.75%), maturity 8/31/28 8/19/2021  990,000   980,710   982,575 
Spring Education, Senior Secured Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 7/30/25 (j) 7/26/2018  957,500   956,472   937,838 
Aegis Sciences, Senior Secured Initial Term Loan (2018) (First Lien), 10.27% (LIBOR + 5.50%), maturity 5/9/25 5/4/2018  605,234   602,154   605,234 
Ned Stevens, Senior Secured Revolving Loan, 11.34% (SOFR + 6.75%), maturity 11/1/29 (i) 11/1/2022  -   (10,154)  - 
               
Beverage, Food & Tobacco              
Bettcher Industries, Senior Secured Initial Term Loan (Second Lien), 11.84% (SOFR + 7.25%), maturity 12/14/29 12/13/2021  2,500,000   2,477,592   2,450,000 
Sovos Brands, Senior Secured Initial Term Loan (First Lien), 8.27% (LIBOR + 3.50%), maturity 6/8/28 6/8/2021  2,033,001   2,033,001   2,033,001 
Bettcher Industries, Senior Secured Initial Term Loan (First Lien), 8.59% (SOFR + 4.00%), maturity 12/14/28 12/13/2021  1,985,000   1,965,440   1,945,300 
Hissho Sushi, Unitranche Term Loan, 10.59% (SOFR + 6.00%), maturity 5/18/28 (i) 4/7/2022  1,847,857   1,811,445   1,835,156 
Dessert Holdings, Senior Secured Initial Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 6/9/28 6/7/2021  1,761,792   1,750,148   1,735,365 
Monogram Foods, Senior Secured Initial Term Loan, 8.77% (LIBOR + 4.00%), maturity 8/28/28 8/13/2021  990,000   981,323   965,250 
Hissho Sushi, Senior Secured Revolving Credit Loan, 10.59% (SOFR + 6.00%), maturity 5/18/28 (i) 4/7/2022  28,571   27,905   28,375 
               
Automotive              
BBB Industries, Senior Secured Initial Term Loan (First Lien), 9.84% (SOFR + 5.25%), maturity 7/31/29 6/30/2022  3,000,000   2,713,911   2,857,500 
Highline, Senior Secured Initial Term Loan (First Lien), 9.27% (LIBOR + 4.50%), maturity 11/9/27 10/29/2020  2,813,523   2,759,164   2,764,286 
Rough Country, Senior Secured Initial Term Loan (First Lien), 8.27% (LIBOR + 3.50%), maturity 7/28/28 7/26/2021  1,975,000   1,970,698   1,965,125 
Truck Hero, Senior Secured Initial Term Loan, 8.52% (LIBOR + 3.75%), maturity 1/31/28 1/20/2021  1,473,750   1,473,750   1,366,443 
Innovative XCessories, Senior Secured Initial Term Loan, 9.02% (LIBOR + 4.25%), maturity 3/5/27 2/27/2020  786,124   785,092   691,789 
Safe Fleet, Senior Secured Initial Term Loan (Second Lien), 11.34% (SOFR + 6.75%), maturity 2/2/26 2/23/2022  500,000   500,000   495,000 
Wheel Pros, Senior Secured Initial Term Loan (First Lien), 9.27% (LIBOR + 4.50%), maturity 5/11/28 4/23/2021  493,750   489,984   380,681 
               
Construction & Building              
A1 Garage Door Service, Unitranche Term A Loan, 11.09% (SOFR + 6.50%), maturity 12/23/28 (i) (j) 12/22/2022  1,826,446   1,762,273   1,771,653 
Tangent, Senior Secured Closing Date Term Loan (First Lien), 9.52% (LIBOR + 4.75%), maturity 11/30/27 10/2/2019  1,781,392   1,774,395   1,768,032 
PlayPower, Senior Secured Initial Term Loan, 10.27% (LIBOR + 5.50%), maturity 5/8/26 5/10/2019  1,737,472   1,737,472   1,563,725 
PlayCore, Senior Secured Initial Term Loan (Second Lien), 12.52% (LIBOR + 7.75%), maturity 9/29/25 2/7/2020  1,500,000   1,480,817   1,500,000 
Specialty Products & Insulation, Senior Secured Tranche B-1 Term Loan, 9.84% (SOFR + 5.25%), maturity 12/21/27 3/16/2022  994,023   984,887   994,023 
Dodge Construction Network, Senior Secured Initial Term Loan (First Lien), 9.34% (SOFR + 4.75%), maturity 2/23/29 2/10/2022  995,000   981,676   987,538 
PlayCore, Senior Secured Initial Term Loan (First Lien), 8.52% (LIBOR + 3.75%), maturity 9/30/24 9/18/2017  946,930   945,987   946,930 
Acuren, Senior Secured Initial Term Loan, 9.02% (LIBOR + 4.25%), maturity 1/23/27 1/17/2020  473,783   472,348   473,783 
Hoffman Southwest, Senior Secured Initial Term Loan, 10.27% (LIBOR + 5.50%), maturity 8/14/23 5/16/2019  422,238   425,188   421,183 
A1 Garage Door Service, Senior Secured Revolving Loan, 11.09% (SOFR + 6.50%), maturity 12/23/28 (i) (j) 12/22/2022  -   (8,264)  - 
               
Environmental Industries              
Alliance Environmental, Unitranche Initial Term Loan, 10.77% (LIBOR + 6.00%), maturity 12/30/27 (i) 12/30/2021  4,115,728   4,046,325   3,959,048 
Denali Water Solutions, Senior Secured Closing Date Term Loan, 9.02% (LIBOR + 4.25%), maturity 3/27/28 3/18/2021  1,970,000   1,952,515   1,935,525 
Keter Environmental Services, Unitranche Closing Date Term Loan, 11.27% (LIBOR + 6.50%), maturity 10/29/27 11/5/2021  495,000   490,704   492,525 
Denali Water Solutions, Senior Secured Amendment No. 3 Term Loan, 9.21% (SOFR + 4.63%), maturity 3/27/28 5/5/2022  497,500   481,376   488,794 
Alliance Environmental, Senior Secured Revolving Loan, 10.77% (LIBOR + 6.00%), maturity 12/30/27 (i) 12/30/2021  314,570   307,947   302,594 
Keter Environmental Services, Unitranche Revolving Loan, 11.27% (LIBOR + 6.50%), maturity 10/29/27 11/5/2021  27,360   26,585   27,223 
               
Consumer Goods: Non-durable              
Hoffmaster Group, Senior Secured Tranche B-1 Term Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 11/21/23 11/9/2016  2,368,573   2,367,209   2,321,201 
Augusta Sportswear, Senior Secured Initial Term Loan, 10.09% (SOFR + 5.50%), maturity 4/25/25 11/2/2016  2,001,028   1,999,579   1,991,023 
Hoffmaster Group, Senior Secured Initial Term Loan (Second Lien), 14.27% (LIBOR + 9.50%), maturity 11/21/24 2/7/2020  1,250,000   1,250,000   1,221,875 
               
Wholesale              
Carlisle FoodService, Senior Secured Initial Term Loan (First Lien), 7.77% (LIBOR + 3.00%), maturity 3/20/25 3/16/2018  3,809,768   3,810,380   3,771,670 
               
Media: Diversified & Production              
MediaRadar, Unitranche Closing Date Term A Loan, 10.59% (SOFR + 6.00%), maturity 7/22/28 (i) 5/23/2022  1,832,444   1,788,565   1,756,837 
Ansira, Unitranche Legacy Term Loan, 6.50% (Fixed) 6.50% PIK, maturity 12/20/24 (q) 12/20/2016  2,266,689   2,263,320   952,010 
MediaRadar, Senior Secured Revolving Loan, 10.59% (SOFR + 6.00%), maturity 7/22/28 (i) 9/16/2022  -   (7,407)  - 
               
Hotels, Gaming & Leisure              
Northstar, Senior Secured Term Loan, 12.02% (LIBOR + 7.25%) 1.00% PIK, maturity 6/7/24 5/8/2017  1,294,954   1,294,954   1,252,868 
Auto Europe, Senior Secured Initial Dollar Term Loan, 9.59% (SOFR + 5.00%), maturity 10/21/23 10/19/2016  1,119,231   1,117,283   895,385 

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


Audax Credit BDC Inc.

Schedule of Investments (Continued)

As of December 31, 2022

(Expressed in U.S. Dollars)

Portfolio Investments (a) (b) (c) (d) (e) (f) Acquisition
Date
 Par  Cost  Value 
BANK LOANS:  NON-CONTROL/NON-AFFILIATE INVESTMENTS(h) (Continued):              
               
Metals & Mining              
Dynatect (A&A), Senior Secured Term B Loan, 9.27% (LIBOR + 4.50%), maturity 9/30/24 8/16/2019 $1,689,870  $1,680,609  $1,689,870 
               
Forest Products & Paper              
Loparex, Senior Secured Initial Term Loan (First Lien), 9.27% (LIBOR + 4.50%), maturity 7/31/26 7/29/2019  1,451,250   1,443,028   1,451,250 
               
Utilities: Electric              
Systems Control, Senior Secured Initial Term Loan, 9.27% (LIBOR + 4.50%), maturity 3/28/25 6/15/2021  1,475,482   1,473,812   1,442,284 
               
Retail              
Varsity Brands, Senior Secured Initial Term Loan (First Lien), 8.27% (LIBOR + 3.50%), maturity 12/16/24 (j) 10/17/2018  957,221   960,242   925,274 
StubHub, Senior Secured USD Term B Loan, 8.27% (LIBOR + 3.50%), maturity 2/12/27 1/31/2020  485,000   483,510   465,600 
               
Utilities: Water              
Aegion, Senior Secured Initial Term Loan, 9.52% (LIBOR + 4.75%), maturity 5/17/28 4/1/2021  987,499   983,463   970,217 
               
Energy: Electricity              
Franklin Energy, Senior Secured Term B Loan (First Lien), 8.77% (LIBOR + 4.00%), maturity 8/14/26 8/14/2019  967,500   965,978   948,150 
               
Consumer Goods: Durable              
Careismatic, Senior Secured Initial Term Loan (First Lien), 8.02% (LIBOR + 3.25%), maturity 1/6/28 1/22/2021  492,500   491,455   472,800 
               
Total Bank Loans       $424,399,110  $417,174,660 

EQUITY AND PREFERRED SHARES:  NON-CONTROL/NON-AFFILIATE INVESTMENTS- (0.9%)(g)(h):              
               
Services: Business              
InnovateMR, Class A Units (387.31 Class A Units) (i) (p) (r) 12/16/2021     $387,311  $503,132 
Industrial Services Group, Class A Units (238.10 Class A Units) (i) (p) (s) 12/7/2022      238,095   238,095 
Liberty Group, Series A-Preferred Units (113,636.36 Series A-Preferred Units) (i) (p) (t) 6/6/2022      113,636   151,883 
VC3, Class A Units (7,499.03 Class A Units) (i) (p) (u) 9/16/2022      29,846   29,846 
               
High Tech Industries              
PracticeTek, Class A Units (344,833.35 Class A Units) (i) (p) (v) 11/22/2021      377,255   377,815 
Golden Source, Class A Units (117,370.89 Class A Units) (i) (p) (w) 3/25/2022      117,371   180,475 
               
Healthcare & Pharmaceuticals              
InterMed, Class A Units (2,484 Class A Units) (i) (p) (x) 12/22/2022      248,380   248,380 
RevHealth, Class A-1 Units (20,547.95 Class A-1 Units) (i) (p) (y) 7/22/2022      205,479   200,873 
Ivy Rehab, Class A Units (100 Class A Units) (i) (p) (z) 3/11/2022      100,000   74,010 
               
Beverage, Food & Tobacco              
Hissho Sushi, Class A Units (25,000 Class A Units) (i) (p) (aa) 4/7/2022      250,000   317,845 
               
Environmental Industries              
Alliance Environmental Group, A-1 Preferred Units (331.13 A-1 Preferred Units) (i) (p) (ab) 9/30/2019      331,126   311,970 
               
Construction & Building              
A1 Garage Door Service, Class A Common Units (272.73 Class A Common Units) (i) (p) (ac) 12/22/2022      272,727   272,727 
               
Services: Consumer              
Ned Stevens, Class B Common Units (261.44 Class B Common Units) (i) (p) (ad) 11/1/2022      261,438   261,438 
               
Chemicals, Plastics & Rubber              
Vertellus, Series A Units (1,651 Series A Units) (i) (p) (ae) 12/22/2020      165,138   253,318 
               
Banking, Finance, Insurance & Real Estate              
Cherry Bekaert, Class A Units (129,870.13 Class A Units) (i) (p) (af) 6/30/2022      129,870   159,143 
               
Media: Advertising, Printing & Publishing              
MediaRadar, Class A-1 Units (74,074.07 Class A-1 Units) (i) (p) (ag) 9/16/2022      74,074   73,048 
               
Total Equity and Preferred Shares       $3,301,746  $3,653,998 
               
Total Portfolio Investments (ah)       $427,700,856  $420,828,658 

affiliated equity aggregator vehicle.

(ag)

(a)All companies are located in the United States of America, unless otherwise noted.
(b)Interest rate percentages represent actual interest rates as of December 31, 2022, which are indexed to the noted reference rate. The referenced rates are subject to interest floors which can vary based on contractual agreements with the borrower.
(c)All loans are income-producing, unless otherwise noted.
(d)All investments are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the "1940 Act") unless otherwise noted.
(e)All investments are exempt from registration under the Securities Act of 1933 (the “Securities Act”), and may be deemed to be “restricted securities” under the Securities Act.
(f)Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the FASB Accounting Standard Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
(g)Percentages are calculated using fair value of investments over net assets.
(h)As defined in 1940 Act, the Company is not deemed to be an “Affiliated Person” of or “Control” this portfolio company because it neither owns 5% or  more of the portfolio company’s outstanding voting securities nor has the power to exercise control over the management or policies of such portfolio company (including through a management agreement).
(i)Three of our affiliated funds, Audax Direct Lending Solutions Fund - A, L.P., Audax Direct Lending Solutions Fund - C, L.P., and Audax Direct Lending Solutions Fund - D, L.P., co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.
(j)Investment was valued using Level 2 inputs within the ASC 820 fair value hierarchy.  Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional information.
(k)The Company headquarters for UDG is located in Ireland.
(l)The Company purchased the investment, pursuant to a repurchase agreement with a rate of 1.9626 basis points per day with Macquarie US Trading LLC, dated June 21, 2022, due January 17, 2023.
(m)The Company purchased the investment, pursuant to a repurchase agreement with a rate of 1.9530 basis points per day with Macquarie US Trading LLC, dated July 19, 2022, due January 15, 2023.
(n)The Company headquarters for Sophos & Integro are located in United Kingdom.
(o)The Company headquarters for Intertape Polymer is located in Canada.
(p)Investment is non-income producing.
(q)Investment is on non-accrual
(r)Represents an investment in APD INN Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(s)Represents an investment in APD ISG Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(t)Represents an investment in APD TLG Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(u)Represents an investment in APD VC3 Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(v)Represents an investment in APD Ptek Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(w)Represents an investment in APD Gol Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(x)Represents an investment in APD IMD Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(y)Represents an investment in APD RH Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(z)Represents an investment in APD IVY Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(aa)Represents an investment in APD Sush Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(ab)Represents an investment in APD AEG Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(ac)Represents an investment in APD GAR Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(ad)Represents an investment in APD NS Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(ae)Represents an investment in ADP VERT Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(af)Represents an investment in APD CBA Equity Blocker, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(ag)Represents an investment in APD MDR Equity, L.P., a holding company, made through an affiliated equity aggregator vehicle.
(ah)

At December 31, 2022, the cost of investments for income tax purposes was $427,700,856, the gross unrealized depreciation for federal tax purposes was $9,092,100, the gross unrealized appreciation for federal income tax purposes was $2,219,902, and the net unrealized depreciation was $6,872,198.

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


27

Audax Credit BDC Inc.

Notes to Financial Statements

March 31, 2023

(unaudited)

Note 1. Organization

Audax Credit BDC Inc. (the “Company”) is a Delaware corporation that was formed on January 29, 2015. The Company is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, effective with the Company’s taxable year ended December 31, 2015, the Company has elected to be treated for federal income tax purposes and intends to comply with the requirements to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the U.S. Internal Revenue Code of 1986, as amended (the “Code”).

The Company commenced business operations on July 8, 2015, the date on which the Company made its first investment. The Company was formed for the purpose of investing primarily in the debt of leveraged, non-investment grade middle market companies, with the principal objective of generating income and capital appreciation. The Company’s investment strategy is to invest primarily in first lien senior secured loans and selectively in second lien loans to middle market companies.

Audax Management Company (NY), LLC (the “Adviser”) is the investment adviser of the Company. The Adviser is registered as an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940, as amended.

Note 2. Significant Accounting Policies

Basis of Presentation

As an investment company, the accompanying financial statements of the Company are prepared in accordance with the investment company accounting and reporting guidance of ASC Topic 946, “Financial Services – Investment Companies,” as amended (“ASC Topic 946”), which incorporates the requirements for reporting on Form 10-Q and Articles 6 and 10 of Regulation S-X, as well as generally accepted accounting principles in the United States of America (“GAAP”).

Certain financial information that is normally included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted herein. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. In the opinion of management of the Company, the unaudited financial results included herein contain all adjustments, consisting solely of normal accruals, considered necessary for the fair presentation of financial statements for the interim period included herein. The current period’s results of operations are not necessarily indicative of the operating results to be expected for future periods. The accounting records of the Company are maintained in U.S. dollars.

Certain prior period information has been reclassified to conform to the current period presentation. The reclassification has no effect on the Company’s financial position, or the results of operations as previously reported.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions that may affect the reported amounts and disclosures in the financial statements. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ, and these differences could be material.

28


Cash and Cash Equivalents

Cash and cash equivalents are stated at fair value. The Company considers all highly liquid investments purchased with maturities of three months or less and money market mutual funds to be cash equivalents. No cash equivalent balances were held as of March 31, 2023 and December 31, 2022. At such dates, cash was not subject to any restrictions on withdrawal.

Expenses

The Company is responsible for investment expenses, legal expenses, auditing fees and other expenses related to the Company’s operations. Such fees and expenses, including expenses initially incurred by the Adviser, may be reimbursed by the Company.

Investment Valuation Policy

The Company conducts the valuation of the Company’s investments, pursuant to which the Company’s net asset value is determined, at all times consistent with GAAP and the 1940 Act. The Company’s Board of Directors (the “Board of Directors”), with the assistance of the Company’s Audit Committee (the “Audit Committee”), determines the fair value of the Company’s investments, for investments with a public market and for investments with no readily available public market, on at least a quarterly basis, in accordance with the terms of ASC Topic 820, “Fair Value Measurement,” (“ASC 820”). The Company’s valuation procedures are set forth in more detail below.

ASC 820 defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions and market information might not be available. However, the objective of a fair value measurement in both cases is the same – to estimate the price when an orderly transaction to sell the asset or transfer the liability would take place between market participants at the measurement date under current market conditions (that is, an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability).

ASC 820 establishes a hierarchal disclosure framework which ranks the observability of inputs used in measuring financial instruments at fair value. The observability of inputs is impacted by a number of factors, including the type of financial instruments and their specific characteristics. Financial instruments with readily available quoted prices, or for which fair value can be measured from quoted prices in active markets, generally will have a higher degree of market price observability and a lesser degree of judgment applied in determining fair value.

The three-level hierarchy for fair value measurement is defined as follows:

Level 1 — Inputs to the valuation methodology are quoted prices available in active markets for identical financial instruments as of the measurement date. The types of financial instruments in this category include unrestricted securities, including equities and derivatives, listed in active markets. The Company does not adjust the quoted price for these instruments, even in situations where the Company holds a large position, and a sale could reasonably be expected to impact the quoted price.

Level 2 — Inputs to the valuation methodology are quoted prices in markets that are not active or for which all significant inputs are either directly or indirectly observable as of the measurement date. The types of financial instruments in this category include less liquid and restricted securities listed in active markets, securities traded in markets that are not active, government and agency securities, and certain over-the-counter derivatives where the fair value is based on observable inputs.

Level 3 — Inputs to the valuation methodology are unobservable and significant to the overall fair value measurement, and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments in this category include investments in privately held entities, non-investment grade residual interests in securitizations,

29

collateralized loan obligations, and certain over-the-counter derivatives where the fair value is based on unobservable inputs.


In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. Assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

Pursuant to the framework set forth above, the Company values securities traded in active markets on the measurement date by multiplying the exchange closing price of such traded securities/instruments by the quantity of shares or amount of the instrument held. The Company may also obtain quotes with respect to certain of its investments from pricing services, brokers or dealers’ quotes, or counterparty marks in order to value liquid assets that are not traded in active markets.

Pricing services aggregate, evaluate and report pricing from a variety of sources including observed trades of identical or similar securities, broker or dealer quotes, model-based valuations and internal fundamental analysis and research. When doing so, the Company determines whether the quote obtained is sufficient in accordance with GAAP to determine the fair value of the security. If determined adequate, the Company uses the quote obtained.

Securities that are illiquid or for which the pricing source does not provide a valuation or methodology or provides a valuation or methodology that, in the judgment of the Board of Directors, does not represent fair value, are each valued as of the measurement date using all techniques appropriate under the circumstances and for which sufficient data are available. These valuation techniques vary by investment but include comparable public market valuations, comparable precedent transaction valuations and discounted cash flow analyses. Inputs for these valuation techniques include relative credit information, observed market movement, industry sector information, and other market data, which may include benchmarking of comparable securities, issuer spreads, reported trades, and reference data, such as market research publications, when available. The process used to determine the applicable value is as follows:

(i)Each portfolio company or investment is initially valued by the investment professionals of the Adviser responsible for the portfolio investment using a standardized template designed to approximate fair market value based on observable market inputs and updated credit statistics and unobservable inputs. Additionally, as a part of the Company’s valuation process, the Adviser may employ the services of one or more independent valuation firms engaged by the Company;

(ii)Preliminary valuation conclusions are documented and discussed with the Company’s senior management and members of the Adviser’s valuation team;

(iii)The Audit Committee reviews the assessments of the Adviser or independent valuation firm (to the extent applicable) and provides the Board of Directors with recommendations with respect to the fair value of the investments in the Company’s portfolio; and

(iv)The Board of Directors discusses the valuation recommendations of the Audit Committee and determines the fair value of the investments in the Company’s portfolio in good faith based on the input of the Adviser, the independent valuation firm (to the extent applicable) and in accordance with the Company’s valuation policy.


The Audit Committee’s recommendation of fair value is generally based on its assessment of the following factors, as relevant:

·the nature and realizable value of any collateral;

·call features, put features and other relevant terms of debt;

·the portfolio company’s ability to make payments;

·the portfolio company’s actual and expected earnings and discounted cash flow;

30

·prevailing interest rates for like securities and expected volatility in future interest rates;

·the markets in which the portfolio company does business and recent economic and/or market events; and

·comparisons to publicly traded securities.

Investment performance data utilized are the most recently available as of the measurement date, which in many cases may reflect up to a one quarter lag in information.

Securities for which market quotations are not readily available or for which a pricing source is not sufficient may include the following:

·private placements and restricted securities that do not have an active trading market;

·securities whose trading has been suspended or for which market quotes are no longer available;

·debt securities that have recently gone into default and for which there is no current market;

·securities whose prices are stale; and

·securities affected by significant events.

The Board of Directors is responsible for the determination, in good faith, of the fair value of the Company’s portfolio investments.

Determination of fair value involves subjective judgments and estimates. Accordingly, these notes to the Company’s financial statements express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on the Company’s financial statements.

Security transactions are recorded on the trade date (the date the order to buy or sell is executed or, in the case of privately issued securities, the closing date, which is when all terms of the transactions have been defined).

Realized gains and losses on investments are determined based on the identified cost method.

In addition, on December 3, 2020, the SEC announced that it adopted Rule 2a-5 under the 1940 Act, which establishes an updated regulatory framework for determining fair value in good faith for purposes of the 1940 Act. The new rule clarifies how fund boards can satisfy their valuation obligations in light of recent market developments. This permits boards, subject to board oversight and certain other conditions, to designate certain parties to perform the fair value determinations.


Refer to Note 3 — Investments for additional information regarding fair value measurements and the Company’s application of ASC 820.

Interest Income Recognition

Interest income, adjusted for amortization of premium, acquisition costs, and amendment fees and the accretion of original issue discount (“OID”), are recorded on an accrual basis to the extent that such amounts are expected to be collected. Generally, when a loan becomes 120 days or more past due, or if the Company’s qualitative assessment indicates that the debtor is unable to service its debt or other obligations, the Company will place the loan on non-accrual status and cease recognizing interest income on that loan for financial reporting purposes until the borrower has demonstrated the ability and intent to pay contractual amounts due. However, the Company will remain contractually entitled to this interest. Interest payments received on non-accrual loans are restored to accrual status when past due principal and interest are paid and, in management’s judgment, are likely to remain current or, due to a restructuring, the interest income is deemed to be collectible. As of March 31, 2023, the Company held one investment on non-accrual, which represented 0.56% and 0.22% of the Company’s total portfolio at cost and fair market value, respectively. As of December 31, 2022, the Company held one investment on non-accrual, which represented 0.53% and 0.23% of the Company’s total portfolio at cost and fair market value, respectively.

31

The Company currently holds loans in the portfolio that contain OID and that contain payment-in-kind (“PIK”) provisions. TheThe Company recognizes OID for loans originally issued at a discount and recognizes the income over the life of the obligation based on an effective yield calculation. PIK interest, computed at the contractual rate specified in a loan agreement, is added to the principal balance of a loan and recorded as income over the life of the obligation. Therefore, the actual collection of PIK income may be deferred until the time of debt principal repayment. To maintain the ability to be taxed as a RIC, the Company may need to pay out of both OID and PIK non-cash income amounts in the form of distributions, even though the Company has not yet collected the cash on either.

As of March 31, 2023, the Company held 235 investments in loans with OID. The Company accrued OID income of $165,630 for the three months ended March 31, 2023. The unamortized balance of OID on debt investments as of March 31, 2023 totaled $4,534,506. As of December 31, 2022, the Company held 239 investments in loans with OID. The Company accrued OID income of $144,919 for the three months ended March 31, 2022. The unamortized balance of OID investments as of December 31, 2022, totaled $4,510,014.

As of March 31, 2023, the Company held seven investments which had a PIK interest component. The Company recorded $87,506 in PIK interest income for the three months ended March 31, 2023. As of March 31, 2022, the Company held three investments which had a PIK interest component. The Company recorded $61,319 in PIK interest income for the three months ended March 31, 2022.

As of March 31, 2023 and December 31, 2022, the Company held $32,284,422 and $15,923,163 in cash and cash equivalents, respectively. For the three months ended March 31, 2023 and 2022 the Company earned $64,550 and $384, respectively, of interest income related to cash, which is included in other interest income within the accompanying statement of operations.

Other Income Recognition

The Company generally records prepayment fees and amendment fees upon receipt of cash or as soon as the Company becomes aware of the prepayment or amendment.

Dividend income on equity investments is accrued to the extent that such amounts are expected to be collected and if the Company has the option to collect such amounts in cash.

Prepayment fees, amendment fees and dividend income are accrued in other income in the accompanying statements of operations.

For the three months ended March 31, 2023 and 2022, the Company accrued $62,635 and $38,118 of other income, respectively, related to amendment fees.


New Accounting Pronouncements

In March 2020, FASB issued Accounting Standards Update No. 2020-04 (“ASU 2020-04”), “Reference Rate Reform (Topic 848)”. In response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of the London Interbank Offered Rate (“LIBOR”), regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective as of March 12, 2020 through December 31, 2024. Management is currently evaluating the impact of the guidance.

32

Note 3. Investments

Fair Value

In accordance with ASC 820, the fair value of the Company’s investments is determined to be the price that would be received for an investment in a current sale, assuming an orderly transaction between willing market participants on the measurement date. This fair value definition focuses on exit price in the principal, or most advantageous, market and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. ASC 820 also establishes the three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of a financial instrument as of the measurement date as described in Note–2 – Significant Accounting Policies.

As of March 31, 2023, $307,693,482 of the Company’s investments were valued using unobservable inputs, and $91,150,458 were valued using observable inputs. During the three months ended March 31, 2023, $9,724,149 transferred into Level 3 due to a decrease in observable prices in the market and $37,787,878 transferred out of Level 3 due to the liquidity in the market and transparency of inputs.

As of December 31, 2022, $339,976,294 of the Company’s investments were valued using unobservable inputs, and $80,852,364 were valued using observable inputs. During the year ended December 31, 2022, $160,938,497 transferred into Level 3 due to a decrease in observable prices in the market and $997,500 transferred out of Level 3 due to the liquidity in the market and transparency of inputs.

The following table presents the Company’s investments carried at fair value as of March 31, 2023 and December 31, 2022, by caption on the Company’s accompanying statements of assets and liabilities and by security type.

 Assets at Fair Value as of March 31, 2023 
 Level 1 Level 2 Level 3 Total 

    

Assets at Fair Value as of March 31, 2023

    

Level 1

    

Level 2

    

Level 3

    

Total

First Lien Debt $-  $89,375,458  $185,234,925  $274,610,383 

$

$

89,375,458

$

185,234,925

$

274,610,383

Unitranche Debt  -   -   97,301,115   97,301,115 

 

 

 

97,301,115

 

97,301,115

Second Lien Debt  -   1,775,000   21,328,169   23,103,169 

 

 

1,775,000

 

21,328,169

 

23,103,169

Equity and Preferred Shares  -   -   3,829,273   3,829,273 

 

 

 

3,829,273

 

3,829,273

Total $-  $91,150,458  $307,693,482  $398,843,940 

$

$

91,150,458

$

307,693,482

$

398,843,940

 Assets at Fair Value as of December 31, 2022 
 Level 1 Level 2 Level 3 Total 

    

Assets at Fair Value as of December 31, 2022

    

Level 1

    

Level 2

    

Level 3

    

Total

First Lien Debt $-  $75,132,547  $220,893,916  $296,026,463 

$

$

75,132,547

$

220,893,916

$

296,026,463

Unitranche Debt  -   4,719,817   91,865,688   96,585,505 

 

 

4,719,817

 

91,865,688

 

96,585,505

Second Lien Debt  -   1,000,000   23,562,691   24,562,691 

 

 

1,000,000

 

23,562,691

 

24,562,691

Equity and Preferred Shares  -   -   3,653,999   3,653,999 

 

 

 

3,653,999

 

3,653,999

Total $-  $80,852,364  $339,976,294  $420,828,658 

$

$

80,852,364

$

339,976,294

$

420,828,658


33

In accordance with ASC 820, the following table provides quantitative information about the Level 3 fair value measurements of the Company’s investments as of March 31, 2023. The weighted average calculations in the table below are based on the fair value balances for all debt related calculations for the particular input.

          As of March 31, 2023
  Fair  Valuation Unobservable   Weighted
  Value  Technique Inputs (1) Range (2) Average (3)
First Lien Debt $152,185,661   Matrix Pricing  Senior Leverage 0.48x - 11.81x 5.05x
         Total Leverage 0.48x - 11.81x 5.95x
         Interest Coverage 0.44x - 18.90x 2.22x
         Debt Service Coverage 0.43x - 12.05x 1.83x
         TEV Coverage 0.68x - 19.41x 2.50x
         Liquidity 13.06% - 402.87% 129.47%
         Spread Comparison 300bps - 725bps 464bps
             
First Lien Debt  33,049,264   Market Analysis  Senior Leverage 0.83x - 49.62x 8.76x
         Total Leverage 0.83x - 49.62x 9.99x
         Interest Coverage (0.13)x - 3.62x 1.65x
         Debt Service Coverage (0.19)x - 2.86x 1.33x
         TEV Coverage 0.16x - 15.49x 1.60x
         Liquidity 24.85% - 439.19% 100.98%
         Spread Comparison 0bps - 575bps 429bps
             
Unitranche Debt  93,266,206   Matrix Pricing  Senior Leverage 4.52x - 7.73x 6.08x
         Total Leverage 4.52x - 8.37x 6.18x
         Interest Coverage 0.66x - 2.64x 1.83x
         Debt Service Coverage 0.46x - 2.23x 1.56x
         TEV Coverage 1.26x - 8.02x 2.23x
         Liquidity 13.06% - 789.19% 165.25%
         Spread Comparison 500bps - 700bps 586bps
             
Unitranche Debt  4,034,909   Market Analysis  Senior Leverage 12.92x - 15.67x 13.50x
         Total Leverage 12.92x - 15.67x 13.50x
         Interest Coverage 0.38x - 0.85x 0.75x
         Debt Service Coverage 0.35x - 0.74x 0.66x
         TEV Coverage 0.49x - 0.84x 0.77x
         Liquidity 56.53% - 86.73% 80.28%
         Spread Comparison 0bps - 350bps 275bps
             
Second Lien Debt  21,328,169   Matrix Pricing  Senior Leverage 3.26x - 10.92x 6.96x
         Total Leverage 3.26x - 10.92x 6.96x
         Interest Coverage 0.67x - 3.82x 1.78x
         Debt Service Coverage 0.58x - 3.25x 1.49x
         TEV Coverage 1.18x - 2.64x 1.72x
         Liquidity 62.88% - 262.14% 136.54%
         Spread Comparison 675bps - 850bps 751bps
             
Total $303,864,209         

    

    

    

    

As of March 31, 2023

 

Fair

Valuation

Unobservable

Weighted

 

    

Value

    

Technique

    

Inputs (1)

    

Range (2)

    

Average (3)

 

First Lien Debt

$

152,185,661

 

Matrix Pricing

 

Senior Leverage

 

0.48

x

-

11.81

x

5.05

x

 

Total Leverage

 

0.48

x

-

11.81

x

5.95

x

 

Interest Coverage

 

0.44

x

-

18.90

x

2.22

x

 

Debt Service Coverage

 

0.43

x

-

12.05

x

1.83

x

 

TEV Coverage

 

0.68

x

-

19.41

x

2.50

x

 

  

 

  

 

Liquidity

 

13.06

%  

-

402.87

%  

129.47

%  

 

Spread Comparison

 

300

bps

-

725

bps

464

bps

First Lien Debt

 

33,049,264

 

Market Analysis

 

Senior Leverage

 

0.83

x

-

49.62

x

8.76

x

 

Total Leverage

 

0.83

x

-

49.62

x

9.99

x

 

Interest Coverage

 

(0.13)

x

-

3.62

x

1.65

x

 

Debt Service Coverage

 

(0.19)

x

-

2.86

x

1.33

x

 

TEV Coverage

 

0.16

x

-

15.49

x

1.60

x

 

  

 

  

 

Liquidity

 

24.85

%  

-

439.19

%  

100.98

%  

 

Spread Comparison

 

0

bps

-

575

bps

429

bps

Unitranche Debt

 

93,266,206

 

Matrix Pricing

 

Senior Leverage

 

4.52

x

-

7.73

x

6.08

x

 

Total Leverage

 

4.52

x

-

8.37

x

6.18

x

 

Interest Coverage

 

0.66

x

-

2.64

x

1.83

x

 

Debt Service Coverage

 

0.46

x

-

2.23

x

1.56

x

 

TEV Coverage

 

1.26

x

-

8.02

x

2.23

x

 

  

 

  

 

Liquidity

 

13.06

%  

-

789.19

%  

165.25

%  

 

Spread Comparison

 

500

bps

-

700

bps

586

bps

Unitranche Debt

 

4,034,909

 

Market Analysis

 

Senior Leverage

 

12.92

x

-

15.67

x

13.50

x

 

Total Leverage

 

12.92

x

-

15.67

x

13.50

x

 

Interest Coverage

 

0.38

x

-

0.85

x

0.75

x

 

Debt Service Coverage

 

0.35

x

-

0.74

x

0.66

x

 

TEV Coverage

 

0.49

x

-

0.84

x

0.77

x

 

  

 

  

 

Liquidity

 

56.53

%  

-

86.73

%  

80.28

%  

 

Spread Comparison

 

0

bps

-

350

bps

275

bps

Second Lien Debt

 

21,328,169

 

Matrix Pricing

 

Senior Leverage

 

3.26

x

-

10.92

x

6.96

x

 

Total Leverage

 

3.26

x

-

10.92

x

6.96

x

 

Interest Coverage

 

0.67

x

-

3.82

x

1.78

x

 

Debt Service Coverage

 

0.58

x

-

3.25

x

1.49

x

 

TEV Coverage

 

1.18

x

-

2.64

x

1.72

x

 

  

 

  

 

Liquidity

 

62.88

%  

-

262.14

%  

136.54

%  

 

Spread Comparison

 

675

bps

-

850

bps

751

bps

Total

$

303,864,209

 

  

 

  

 

  

 

  

  

 

  

(1)

For any portfolio company, the unobservable input "Liquidity"“Liquidity” is a fraction, expressed as a percentage, the numerator of which is the sum of the company'scompany’s undrawn revolving credit facility capacity plus cash, and the denominator of which is the total amount that may be borrowed under the company'scompany’s revolving credit facility. The unobservable input "Spread Comparison"“Spread Comparison” is a comparison of the spread over the referenced rate for each investment to the spread over the referenced rate for general leveraged loan transactions.

(2)

Each range represents the variance of outputs from calculating each statistic for each portfolio company within a specific credit seniority. The range may be a single data point when there is only one company represented in a specific credit seniority.

(3)

Inputs are weighted based on the fair value of the investments included in the range.

The table above does not include $3,829,273 of debt, equity and preferred shares which management values using other unobservable inputs, such as earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA multiples, as well as other qualitative information, including company specific information.

34

In accordance with ASC 820, the following table provides quantitative information about the Level 3 fair value measurements of the Company’s investments as of December 31, 2022. The weighted average calculations in the table below are based on the fair value balances for all debt related calculations for the particular input.

    

    

    

    

    

    

As of December 31, 2022

 

Fair

Valuation

Unobservable

Weighted

 

    

Value

    

Technique

    

Inputs (1)

    

Range (2)

    

Average (3)

 

First Lien Debt

$

187,013,801

 

Matrix Pricing

 

Senior Leverage

 

0.48

x

-

23.60

x

5.18

x

 

Total Leverage

 

0.48

x

-

28.27

x

6.13

x

 

Interest Coverage

 

0.67

x

-

18.90

x

2.25

x

 

Debt Service Coverage

 

0.49

x

-

12.05

x

1.86

x

 

TEV Coverage

 

0.71

x

-

19.41

x

2.40

x

 

  

 

  

 

Liquidity

 

13.86

%  

-

426.46

%  

126.31

%  

 

Spread Comparison

 

300

bps

-

675

bps

449

bps

First Lien Debt

 

33,651,417

 

Market Analysis

 

Senior Leverage

 

2.63

x

-

49.62

x

7.92

x

 

Total Leverage

 

2.63

x

-

49.62

x

9.43

x

 

Interest Coverage

 

(0.13)

x

-

3.62

x

1.79

x

 

Debt Service Coverage

 

(0.19)

x

-

2.83

x

1.47

x

 

TEV Coverage

 

0.16

x

-

3.42

x

1.83

x

 

  

 

  

 

Liquidity

 

22.80

%  

-

811.22

%  

137.00

%  

 

Spread Comparison

 

350

bps

-

725

bps

449

bps

Unitranche Debt

 

87,787,461

 

Matrix Pricing

 

Senior Leverage

 

4.63

x

-

12.00

x

6.22

x

 

Total Leverage

 

4.73

x

-

12.00

x

6.31

x

 

Interest Coverage

 

0.60

x

-

2.88

x

1.95

x

 

Debt Service Coverage

 

0.53

x

-

2.28

x

1.62

x

 

TEV Coverage

 

0.96

x

-

6.58

x

2.14

x

 

  

 

  

 

Liquidity

 

64.00

%  

-

293.80

%  

141.30

%  

 

Spread Comparison

 

500

bps

-

650

bps

580

bps

Unitranche Debt

 

4,078,227

 

Market Analysis

 

Senior Leverage

 

12.92

x

-

14.48

x

13.28

x

 

Total Leverage

 

12.92

x

-

14.48

x

13.28

x

 

Interest Coverage

 

0.40

x

-

0.85

x

0.74

x

 

Debt Service Coverage

 

0.35

x

-

0.74

x

0.65

x

 

TEV Coverage

 

0.53

x

-

0.84

x

0.77

x

 

  

 

  

 

Liquidity

 

48.28

%  

-

86.73

%  

77.75

%  

 

Spread Comparison

 

350

bps

-

650

bps

420

bps

Second Lien Debt

 

23,562,691

 

Matrix Pricing

 

Senior Leverage

 

3.26

x

-

10.92

x

6.95

x

 

Total Leverage

 

3.26

x

-

10.92

x

6.95

x

 

Interest Coverage

 

0.67

x

-

3.82

x

1.87

x

 

Debt Service Coverage

 

0.58

x

-

3.25

x

1.55

x

 

TEV Coverage

 

1.08

x

-

2.85

x

1.79

x

 

  

 

  

 

Liquidity

 

62.88

%  

-

262.14

%  

135.17

%  

 

Spread Comparison

 

675

bps

-

950

bps

758

bps

Total

$

336,093,597

 

  

 

  

 

  

 

  

  

 

  


         As of December 31, 2022
  Fair  Valuation Unobservable   Weighted
  Value  Technique   Inputs (1)   Range (2) Average (3)
First Lien Debt $187,013,801   Matrix Pricing Senior Leverage 0.48x - 23.60x 5.18x
        Total Leverage 0.48x - 28.27x 6.13x
        Interest Coverage 0.67x - 18.90x 2.25x
        Debt Service Coverage 0.49x - 12.05x 1.86x
        TEV Coverage 0.71x - 19.41x 2.40x
        Liquidity 13.86% - 426.46% 126.31%
        Spread Comparison 300bps - 675bps 449bps
             
First Lien Debt  33,651,417   Market Analysis Senior Leverage 2.63x - 49.62x 7.92x
        Total Leverage 2.63x - 49.62x 9.43x
        Interest Coverage (0.13)x - 3.62x 1.79x
        Debt Service Coverage (0.19)x - 2.83x 1.47x
        TEV Coverage 0.16x - 3.42x 1.83x
        Liquidity 22.80% - 811.22% 137.00%
        Spread Comparison 350bps - 725bps 449bps
             
Unitranche Debt  87,787,461   Matrix Pricing Senior Leverage 4.63x - 12.00x 6.22x
        Total Leverage 4.73x - 12.00x 6.31x
        Interest Coverage 0.60x - 2.88x 1.95x
        Debt Service Coverage 0.53x - 2.28x 1.62x
        TEV Coverage 0.96x - 6.58x 2.14x
        Liquidity 64.00% - 293.80% 141.30%
        Spread Comparison 500bps - 650bps 580bps
             
Unitranche Debt  4,078,227   Market Analysis Senior Leverage 12.92x - 14.48x 13.28x
        Total Leverage 12.92x - 14.48x 13.28x
        Interest Coverage 0.40x - 0.85x 0.74x
        Debt Service Coverage 0.35x - 0.74x 0.65x
        TEV Coverage 0.53x - 0.84x 0.77x
        Liquidity 48.28% - 86.73% 77.75%
        Spread Comparison 350bps - 650bps 420bps
             
Second Lien Debt  23,562,691   Matrix Pricing Senior Leverage 3.26x - 10.92x 6.95x
        Total Leverage 3.26x - 10.92x 6.95x
        Interest Coverage 0.67x - 3.82x 1.87x
        Debt Service Coverage 0.58x - 3.25x 1.55x
        TEV Coverage 1.08x - 2.85x 1.79x
        Liquidity 62.88% - 262.14% 135.17%
        Spread Comparison 675bps - 950bps 758bps
Total $336,093,597         

(1)

(1)

For any portfolio company, the unobservable input "Liquidity" is a fraction, expressed as a percentage, the numerator of which is the sum of the company'scompany’s undrawn revolving credit facility capacity plus cash, and the denominator of which is the total amount that may be borrowed under the company'scompany’s revolving credit facility. The unobservable input "Spread Comparison" is a comparison of the spread over the referenced rate for each investment to the spread over the referenced rate for general leveraged loan transactions.

(2)

(2)

Each range represents the variance of outputs from calculating each statistic for each portfolio company within a specific credit seniority. The range may be a single data point when there is only one company represented in a specific credit seniority.

(3)

(3)

Inputs are weighted based on the fair value of the investments included in the range.

The table above does not include $3,882,697 of debt, equity and preferred shares which management values using other unobservable inputs, such as EBITDA and EBITDA multiples, as well as other qualitative information, including company specific information.

35

Fair value measurements can be sensitive to changes in one or more of the valuation inputs. Changes in market yields, discounts rate, leverage, EBITDA or EBITDA multiples (or revenue or revenue multiples), each in isolation, may change the fair value of certain of the Company’s investments. Generally, an increase or decrease in market yields, discount rates or leverage or an increase/decrease in EBITDA or EBITDA multiples (or revenue or revenue multiples) may result in a corresponding decrease or increase, respectively, in the fair value of certain of the Company’s investments.


The following tables provide the changes in fair value, broken out by security type, during the three months ended March 31, 2023 and 2022 for all investments for which the Company determines fair value using unobservable (Level 3) factors.

Three Months Ended March 31, 2023 First Lien
Debt
  Unitranche
Debt
  Second Lien
Debt
  Equity and
Preferred
Shares
  Total 
Fair Value as of December31, 2022 $220,893,916  $91,865,688  $23,562,691  $3,653,999  $339,976,294 
Transfers into Level 3  4,004,332   4,719,817   1,000,000   -   9,724,149 
Transfers out of Level 3  (35,792,878)  -   (1,995,000)  -   (37,787,878)
Total gains:                    
Net realized gain(a)  1,488   5,819   -   -   7,307 
Net unrealized (depreciation) appreciation(b)  (1,057,298)  65,039   4,196   175,274   (812,789)
New investments, repayments and settlements:(c)                    
Purchases  2,076,838   2,686,144   -   -   4,762,982 
Settlements/repayments  (4,996,566)  (2,146,723)  (1,250,000)  -   (8,393,289)
Net amortization of premiums, PIK, discounts and fees  105,093   105,331   6,282   -   216,706 
Sales  -   -   -   -   - 
Fair Value as of March 31, 2023 $185,234,925  $97,301,115  $21,328,169  $3,829,273  $307,693,482 

    

    

    

    

Equity and

    

First Lien

Unitranche

Second Lien

Preferred

Three Months Ended March 31, 2023

Debt

Debt

Debt

Shares

Total

Fair Value as of December31, 2022

$

220,893,916

$

91,865,688

$

23,562,691

$

3,653,999

$

339,976,294

Transfers into Level 3

 

4,004,332

 

4,719,817

 

1,000,000

 

 

9,724,149

Transfers out of Level 3

 

(35,792,878)

 

 

(1,995,000)

 

 

(37,787,878)

Total gains:

 

  

 

  

 

  

 

  

 

  

Net realized gain(a)

 

1,488

 

5,819

 

 

 

7,307

Net unrealized (depreciation) appreciation(b)

 

(1,057,298)

 

65,039

 

4,196

 

175,274

 

(812,789)

New investments, repayments and settlements:(c)

 

  

 

  

 

  

 

  

 

  

Purchases

 

2,076,838

 

2,686,144

 

 

 

4,762,982

Settlements/repayments

 

(4,996,566)

 

(2,146,723)

 

(1,250,000)

 

 

(8,393,289)

Net amortization of premiums, PIK, discounts and fees

 

105,093

 

105,331

 

6,282

 

 

216,706

Sales

 

 

 

 

 

Fair Value as of March 31, 2023

$

185,234,925

$

97,301,115

$

21,328,169

$

3,829,273

$

307,693,482

(a)

(a)

Included in net realized (loss) gain on the accompanying Statement of Operations for the three months ended March 31, 2023.

(b)

(b)

Included in net change in unrealized depreciation on the accompanying Statement of Operations for the three months ended March 31, 2023.

(c)

(c)

Includes increases in the cost basis of investments resulting from portfolio investments, the amortization of discounts, and PIK, as well as decreases in the costs basis of investments resulting from principal repayments or sales, the amortization of premiums and acquisition costs and other cost-basis adjustments.

Three Months Ended March 31, 2022 First Lien
Debt
  Unitranche
Debt
  Second Lien
Debt
  Equity and
Preferred
Shares
  Total 
Fair Value as of December31, 2021 $118,049,277  $19,092,768  $14,701,508  $1,346,357  $153,189,910 
Transfers into Level 3  63,131,533   6,206,403   4,435,000   -   73,772,936 
Transfers out of Level 3  (23,883,610)  (1,591,442)  -   -   (25,475,052)
Total gains:                    
Net realized gain(a)  108,706   -   8,440   107,938   225,084 
Net unrealized (depreciation) appreciation(b)  (277,413)  19,206   15,811   3,011   (239,385)
New investments, repayments and settlements:(c)                    
Purchases  2,233,749   977,647   500,000   -   3,711,396 
Settlements/repayments  (5,890,560)  (61,419)  (500,000)  -   (6,451,979)
Net amortization of premiums, PIK, discounts and fees  66,502   71,360   6,999   -   144,861 
Sales  (360,400)  -   -   (188,450)  (548,850)
Fair Value as of March 31, 2022 $153,177,784  $24,714,523  $19,167,758  $1,268,856  $198,328,921 

36

    

    

    

    

Equity and

    

First Lien

Unitranche

Second Lien

Preferred

Three Months Ended March 31, 2022

Debt

Debt

Debt

Shares

Total

Fair Value as of December31, 2021

$

118,049,277

$

19,092,768

$

14,701,508

$

1,346,357

$

153,189,910

Transfers into Level 3

 

63,131,533

 

6,206,403

 

4,435,000

 

 

73,772,936

Transfers out of Level 3

 

(23,883,610)

 

(1,591,442)

 

 

 

(25,475,052)

Total gains:

 

  

 

  

 

  

 

  

 

  

Net realized gain(a)

 

108,706

 

 

8,440

 

107,938

 

225,084

Net unrealized (depreciation) appreciation(b)

 

(277,413)

 

19,206

 

15,811

 

3,011

 

(239,385)

New investments, repayments and settlements:(c)

 

  

 

  

 

  

 

  

 

  

Purchases

 

2,233,749

 

977,647

 

500,000

 

 

3,711,396

Settlements/repayments

 

(5,890,560)

 

(61,419)

 

(500,000)

 

 

(6,451,979)

Net amortization of premiums, PIK, discounts and fees

 

66,502

 

71,360

 

6,999

 

 

144,861

Sales

 

(360,400)

 

 

 

(188,450)

 

(548,850)

Fair Value as of March 31, 2022

$

153,177,784

$

24,714,523

$

19,167,758

$

1,268,856

$

198,328,921

(a)

(a)

Included in net realized gain on the accompanying Statement of Operations for the three months ended March 31, 2022.

(b)

(b)

Included in net change in unrealized depreciation on the accompanying Statement of Operations for the three months ended March 31, 2022.

(c)

(c)

Includes increases in the cost basis of investments resulting from portfolio investments, the amortization of discounts, and PIK, as well as decreases in the costs basis of investments resulting from principal repayments or sales, the amortization of premiums and acquisition costs and other cost-basis adjustments.

The change in unrealized value attributable to investments still held at March 31, 2023 and 2022 was ($505,752) and ($655,200), respectively.

Investment Activities

The Company held a total of 244 investments with an aggregate fair value of $398,843,940 as of March 31, 2023. During the three months ended March 31, 2023, the Company invested in 7 new investments for a combined $6,486,826 and in existing investments for a combined $1,889,911. The Company also received $20,751,034 in repayments from investments and $9,262,833 from investments sold during the three months ended March 31, 2023.

The Company held a total of 252 investments with an aggregate fair value of $420,828,658 as of December 31, 2022. During the three months ended March 31, 2022, the Company invested in 22 new investments for a combined $30,097,098 and in existing investments for a combined $3,471,687. The Company also received $12,318,646 in repayments from investments and $4,047,932 from investments sold during the three months ended March 31, 2022.

Investment Concentrations

As of March 31, 2023, the Company’s investment portfolio consisted of investments in 216 companies located in 35 states across 25 different industries, with an aggregate fair value of $398,843,940. The five largest investments at fair value as of March 31, 2023 totaled $25,056,022, or 6.28% of the Company’s total investment portfolio as of such date. As of March 31, 2023, the Company’s average investment was $1,665,053 at cost.


As of December 31, 2022, the Company’s investment portfolio consisted of investments in 222 companies located in 37 states across 25 different industries, with an aggregate fair value of $420,828,658. The five largest investments at fair value

37

as of December 31, 2022 totaled $24,910,205, or 5.92%, of the Company’s total investment portfolio as of such date. As of December 31, 2022, the Company’s average investment was $1,697,226 at cost.

The following table outlines the Company’s investments by security type as of March 31, 2023 and December 31, 2022:

 March 31, 2023 
 Cost  Percentage of
Total
Investments
  Fair Value  Percentage of
Total
Investments
 

    

March 31, 2023

 

    

    

Percentage

    

    

Percentage

  

of

of

 

Total

Total

 

Cost

Investments

Fair Value

Investments

 

First Lien Debt $280,850,892   69.13% $274,610,383   68.85%

$

280,850,892

69.13

%  

$

274,610,383

68.85

%

Unitranche Debt  98,696,509   24.29%  97,301,115   24.40%

 

98,696,509

24.29

%  

 

97,301,115

24.40

%

Second Lien Debt  23,423,718   5.77%  23,103,169   5.79%

 

23,423,718

5.77

%  

 

23,103,169

5.79

%

Total Debt Investments  402,971,119   99.19%  395,014,667   99.04%

 

402,971,119

99.19

%  

 

395,014,667

99.04

%

Equity and Preferred Shares  3,301,746   0.81%  3,829,273   0.96%

 

3,301,746

0.81

%  

 

3,829,273

0.96

%

Total Equity Investments  3,301,746   0.81%  3,829,273   0.96%

 

3,301,746

0.81

%  

 

3,829,273

0.96

%

Total Investments $406,272,865   100.00% $398,843,940   100.00%

$

406,272,865

100.00

%  

$

398,843,940

100.00

%

 December 31, 2022 
 Cost  Percentage of
Total
Investments
  Fair Value  Percentage of
Total
Investments
 

    

December 31, 2022

 

    

    

Percentage

    

    

Percentage

  

of

of

 

Total

Total

 

Cost

Investments

Fair Value

Investments

 

First Lien Debt $301,685,656   70.54% $296,026,463   70.34%

$

301,685,656

70.54

%  

$

296,026,463

70.34

%

Unitranche Debt  98,045,938   22.92%  96,585,505   22.95%

 

98,045,938

22.92

%  

 

96,585,505

22.95

%

Second Lien Debt  24,667,515   5.77%  24,562,691   5.84%

 

24,667,515

5.77

%  

 

24,562,691

5.84

%

Total Debt Investments  424,399,109   99.23%  417,174,659   99.13%

 

424,399,109

99.23

%  

 

417,174,659

99.13

%

Equity and Preferred Shares  3,301,747   0.77%  3,653,999   0.87%

 

3,301,747

0.77

%  

 

3,653,999

0.87

%

Total Equity Investments  3,301,747   0.77%  3,653,999   0.87%

 

3,301,747

0.77

%  

 

3,653,999

0.87

%

Total Investments $427,700,856   100.00% $420,828,658   100.00%

$

427,700,856

100.00

%  

$

420,828,658

100.00

%


38

Investments at fair value consisted of the following industry classifications as of March 31, 2023 and December 31, 2022:

 March 31, 2023  December 31, 2022 

    

March 31, 2023    

    

December 31, 2022

 

Percentage of 

Percentage of 

Total 

Total 

Industry Fair Value  Percentage of
Total
Investments
  Fair Value  Percentage of
Total
Investments
 

Fair Value

    

Investments

Fair Value

    

Investments

 

Healthcare & Pharmaceuticals $72,867,230   18.28% $74,735,672   17.76%

$

72,867,230

18.28

%  

$

74,735,672

17.76

%

Services: Business  70,471,274   17.67   69,269,858   16.46 

 

70,471,274

 

17.67

 

69,269,858

 

16.46

High Tech Industries  41,936,255   10.51   51,379,328   12.21 

 

41,936,255

 

10.51

 

51,379,328

 

12.21

Containers, Packaging & Glass  33,897,897   8.50   33,987,694   8.08 

 

33,897,897

 

8.50

 

33,987,694

 

8.08

Banking, Finance, Insurance & Real Estate  32,824,993   8.23   32,865,053   7.81 

 

32,824,993

 

8.23

 

32,865,053

 

7.81

Capital Equipment  22,813,532   5.72   28,019,443   6.66 

 

22,813,532

 

5.72

 

28,019,443

 

6.66

Aerospace & Defense  19,804,462   4.97   21,269,972   5.05 

 

19,804,462

 

4.97

 

21,269,972

 

5.05

Chemicals, Plastics & Rubber  17,873,338   4.48   19,080,225   4.53 

 

17,873,338

 

4.48

 

19,080,225

 

4.53

Transportation: Cargo  13,856,343   3.47   13,798,595   3.28 

 

13,856,343

 

3.47

 

13,798,595

 

3.28

Services: Consumer  13,829,609   3.47   13,773,067   3.27 

 

13,829,609

 

3.47

 

13,773,067

 

3.27

Beverage, Food & Tobacco  11,251,142   2.82   11,310,292   2.69 

 

11,251,142

 

2.82

 

11,310,292

 

2.69

Construction & Building  10,691,120   2.68   10,699,594   2.54 

 

10,691,120

 

2.68

 

10,699,594

 

2.54

Automotive  10,415,223   2.61   10,520,824   2.50 

 

10,415,223

 

2.61

 

10,520,824

 

2.50

Environmental Industries  7,458,761   1.87   7,517,679   1.79 

 

7,458,761

 

1.87

 

7,517,679

 

1.79

Wholesale  3,761,807   0.94   3,771,670   0.90 

 

3,761,807

 

0.94

 

3,771,670

 

0.90

Media: Advertising, Printing & Publishing  2,693,677   0.68   2,781,895   0.66 

 

2,693,677

 

0.68

 

2,781,895

 

0.66

Hotels, Gaming & Leisure  2,130,897   0.53   2,148,253   0.51 

 

2,130,897

 

0.53

 

2,148,253

 

0.51

Consumer Goods: Non-Durable  1,991,023   0.50   5,534,099   1.32 

 

1,991,023

 

0.50

 

5,534,099

 

1.32

Metals & Mining  1,689,870   0.42   1,689,870   0.40 

 

1,689,870

 

0.42

 

1,689,870

 

0.40

Utilities: Electric  1,456,893   0.37   1,442,284   0.34 

 

1,456,893

 

0.37

 

1,442,284

 

0.34

Forest Products & Paper  1,447,500   0.36   1,451,250   0.34 

 

1,447,500

 

0.36

 

1,451,250

 

0.34

Retail  1,296,033   0.32   1,390,874   0.33 

 

1,296,033

 

0.32

 

1,390,874

 

0.33

Utilities: Water  967,761   0.24   970,217   0.23 

 

967,761

 

0.24

 

970,217

 

0.23

Energy: Electricity  945,700   0.24   948,150   0.23 

 

945,700

 

0.24

 

948,150

 

0.23

Consumer Goods: Durable  471,600   0.12   472,800   0.11 

 

471,600

 

0.12

 

472,800

 

0.11

 $398,843,940   100.00% $420,828,658   100.00%

$

398,843,940

 

100.00

%  

$

420,828,658

 

100.00

%

Investments at fair value were included in the following geographic regions of the United States as of March 31, 2023 and December 31, 2022:

 March 31, 2023  December 31, 2022 

    

March 31, 2023

December 31, 2022    

 

Percentage of 

Percentage of 

 

Total 

Total 

 

Geographic Region Fair Value  Percentage of
Total
Investments
  Fair Value  Percentage of
Total
Investments
 

Fair Value

   

Investments

    

Fair Value

    

Investments

 

Midwest $94,189,212   23.61% $99,995,134   23.76%

$

94,189,212

 

23.61

%  

$

99,995,134

 

23.76

%

Northeast  93,880,562   23.54   97,037,723   23.06 

 

93,880,562

 

23.54

 

97,037,723

 

23.06

Southeast  60,466,643   15.16   54,739,431   14.77 

 

60,466,643

 

15.16

 

54,739,431

 

14.77

West  51,140,271   12.82   54,750,013   13.01 

 

51,140,271

 

12.82

 

54,750,013

 

13.01

Southwest  48,886,497   12.26   62,170,072   13.01 

 

48,886,497

 

12.26

 

62,170,072

 

13.01

East  34,504,571   8.65   36,228,410   8.61 

 

34,504,571

 

8.65

 

36,228,410

 

8.61

South  7,601,402   1.91   4,420,172   1.87 

 

7,601,402

 

1.91

 

4,420,172

 

1.87

Other(a)  4,617,506   1.16   3,606,809   1.05 

 

4,617,506

 

1.16

 

3,606,809

 

1.05

Northwest  3,557,276   0.89   7,880,894   0.86 

 

3,557,276

 

0.89

 

7,880,894

 

0.86

Total Investments $398,843,940   100.00% $420,828,658   100.00%

$

398,843,940

 

100.00

%  

$

420,828,658

 

100.00

%

(a)The Company headquarters for Sophos is located in the United Kingdom. The Company headquarters for UDG is located in Ireland. The Company headquarters for Intertape Polymer is located in Canada. The Company headquarters for Integro is located in the United Kingdom.

39

(a) The Company headquarters for Sophos is located in the United Kingdom. The Company headquarters for UDG is located in Ireland. The Company headquarters for Intertape Polymer is located in Canada. The Company headquarters for Integro is located in the United Kingdom.Table of Contents


The geographic region indicates the location of the headquarters of the Company’s portfolio companies. A portfolio company may have a number of other business locations in other geographic regions.

Investment Principal Repayments

The following table summarizes the contractual principal repayments and maturity of the Company’s investment portfolio by fiscal year, assuming no voluntary prepayments, as of March 31, 2023:

For the Fiscal Years Ending December 31: Amount 
2023 $5,691,630 
2024  26,531,544 
2025  50,194,594 
2026  55,843,658 
2027  71,844,037 
Thereafter  197,400,162 
Total contractual repayments  407,505,625 
Adjustments to cost basis on debt investments(a)  (4,534,506)
Total Cost Basis of Debt Investments Held at March 31, 2023: $402,971,119 

(a)    Adjustment to cost basis related to unamortized balance of OID investments.

For the Fiscal Years Ending December 31:

    

Amount

2023

$

5,691,630

2024

 

26,531,544

2025

 

50,194,594

2026

 

55,843,658

2027

 

71,844,037

Thereafter

 

197,400,162

Total contractual repayments

 

407,505,625

Adjustments to cost basis on debt investments(a)

 

(4,534,506)

Total Cost Basis of Debt Investments Held at March 31, 2023:

$

402,971,119

(a)Adjustment to cost basis related to unamortized balance of OID investments.

Note 4. Related Party Transactions

Investment Advisory Agreement

The Company has entered into an investment advisory agreement (the “Investment Advisory Agreement”) with the Adviser. In accordance with the Investment Advisory Agreement, the Company pays the Adviser certain fees as compensation for its services, such fees consisting of a base management fee and an incentive fee (the “Incentive Fee”). The services the Adviser provides to the Company, subject to the overall supervision of the Board of Directors, include managing the day-to-day operations of, and providing investment services to, the Company. The Company also entered into a management fee waiver agreement with the Adviser (the “Waiver Agreement”), which the Company or the Adviser may terminate upon 60 days’ prior written notice.

Management Fee

The base management fee is calculated at an annual rate of 1.0% of the Company’s average gross assets including cash and any temporary investments in cash-equivalents, including U.S. government securities and other high-quality investment grade debt investments that mature in 12 months or less from the date of investment, payable quarterly in arrears on a calendar quarter basis.

Pursuant to the Waiver Agreement, the Adviser has agreed to waive the right to receive the base management fee to the extent necessary so that the base management fee payable under the Investment Advisory Agreement equals, and is calculated in the same manner as if, the base management fee otherwise payable by the Company were calculated at an annual rate equal to 0.65% (instead of an annual rate of 1.00%).

For the three months ended March 31, 2023, the Company recorded base management fees of $1,108,854 and waivers to the base management fees of $388,099, as set forth within the accompanying statements of operations. For the three months ended March 31, 2022, the Company recorded base management fees of $1,038,439 and waivers to the base management fees of $363,454, as set forth within the accompanying statements of operations.


Incentive Fee

The Incentive Fee has two parts, as follows: the first part of the Incentive Fee is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter. For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income (including

40

any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses accrued for the quarter (including the base management fee, expenses payable under the Administration Agreement (as defined below) and any interest expense on any credit facilities or outstanding debt and dividends paid on any issued and outstanding preferred stock, but excluding the Incentive Fee).

The Company determines pre-incentive fee net investment income in accordance with GAAP, including, in the case of investments with a deferred interest feature, such as debt instruments with PIK interest, OID securities and accrued income that the Company has not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, computed net of all realized capital losses or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income, expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter, is compared to a hurdle of 1.0% per quarter (4.0% annualized). The Company determines its average gross assets during each fiscal quarter and calculates the base management fee payable with respect to such amount at the end of each fiscal quarter. As a result, a portion of the Company’s net investment income is included in its gross assets for the period between the date on which such income is earned and the date on which such income is distributed. Therefore, the Company’s net investment income used to calculate part of the Incentive Fee is also included in the amount of the Company’s gross assets used to calculate the 1.0% annual base management fee. The Company pays its Adviser an Incentive Fee with respect to its pre-incentive fee net investment income in each calendar quarter as follows:

·no amount is paid on the income-portion of the Incentive Fee in any calendar quarter in which the Company’s pre-incentive fee net investment income does not exceed the hurdle of 1.0% (4.0% annualized);
·100% of the Company’s 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 1.1765 % in any calendar quarter (4.706% annualized). The Company refers to this portion of its pre-incentive fee net investment income (which exceeds the hurdle rate but is less than 1.1765%) as the “catch-up” provision. The catch-up is meant to provide the Adviser with 15.0% of the pre-incentive fee net investment income as if a hurdle rate did not apply if net investment income exceeds 1.1765% in any calendar quarter (4.706% annualized); and
·15.0% of the amount of the Company’s pre-incentive fee net investment income, if any, that exceeds 1.1765% in any calendar quarter (4.706% annualized) is payable to the Adviser.

Pursuant to the Waiver Agreement, the Adviser has agreed to waive its right to receive the Incentive Fee on pre-incentive fee net investment income to the extent necessary so that such Incentive Fee equals, and is calculated in the same manner as, the corresponding Incentive Fee on pre-incentive fee net investment income, if such Incentive Fee (i) were calculated based upon the Adviser receiving 10.0% (instead of 15.0%) of the applicable pre-incentive fee net investment income and (ii) did not include any “catch-up” feature in favor of the Adviser.

The second part of the Incentive Fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals 15.0% of the Company’s realized capital gains, if any, on a cumulative basis from June 16, 2015, the effective date of the Company’s registration statement on Form 10 (file no. 000-55426), through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain Incentive Fees with respect to each of the investments in the Company’s portfolio.

Pursuant to the Waiver Agreement, the Adviser has agreed to waive the right to receive the Incentive Fee on capital gains to the extent necessary so that such portion of the Incentive Fee equals, and is calculated in the same manner as, the corresponding Incentive Fee on capital gains, if such portion of the Incentive Fee were calculated based upon the Adviser receiving 10.0% (instead of 15.0%).


In addition, pursuant to the Waiver Agreement, the Adviser has agreed to waive the right to receive both components of the Incentive Fee to the extent necessary so that it does not receive Incentive Fees which are attributable to income and gains of the Company that exceed an annualized rate of 12.0% in any calendar quarter.

The waivers from the Adviser will remain effective until terminated earlier by either party upon 60 days’ prior written notice.

41

Under the Investment Advisory Agreement, we do not pay any Capital Gains Incentive Fee in respect of unrealized capital appreciation in our portfolio. However, under U.S. generally accepted accounting principles, or GAAP, we are required to accrue for the Capital Gain Incentive Fee on a quarterly basis as if such unrealized capital appreciation were realized in full at the end of each period. If the Capital Gain Incentive Fee Base, adjusted as required by GAAP to include unrealized appreciation, is positive at the end of a period, then GAAP and the terms of the Investment Advisory Agreement require us to accrue a capital gain incentive fee equal to 20% of such amount, less the aggregate amount of actual capital gain incentive fees paid or capital gain incentive fees accrued under GAAP in all prior periods. If such amount is negative, then there is no accrual for such period. The resulting accrual under GAAP for a capital gain incentive fee payable in any period will result in additional expense if such cumulative amount is greater than in the prior period, or in a reversal of previously recorded expense if such cumulative amount is less than in the prior period. We can offer no assurance that any unrealized capital appreciation will be realized in the future.

For the three months ended March 31, 2023, the Company recorded incentive fees related to net investment income of $1,333,105. Offsetting the incentive fees were waivers of the incentive fees of $889,296 for the three months ended March 31, 2023, as set forth within the accompanying statements of operations. For the three months ended March 31, 2022, the Company recorded incentive fees related to net investment income of $426,322. Offsetting the incentive fees were waivers of the incentive fees of $383,690 for the three months ended March 31, 2022, as set forth within the accompanying statements of operations.

Administration Agreement and Administrative Fee

The Company has also entered into an administration agreement (the “Administration Agreement”) with Audax Management Company, LLC (the “Administrator”) pursuant to which the Administrator provides administrative services to the Company. UnderUnder the Administration Agreement, the Administrator performs, or oversees the performance of administrative services necessary for the operation of the Company, which include being responsible for the financial records which the Company is required to maintain and prepare reports filed with the SEC. In addition, the Administrator assists in determining and publishing the Company’s net asset value, oversees the preparation and filing of the Company’s tax returns and the printing and dissemination of reports to the Company’s stockholders, and generally oversees the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. The Company reimburses the Administrator for its allocable portion of the costs and expenses incurred by the Administrator for overhead in performance by the Administrator of its duties under the Administration Agreement, including the cost of facilities, office equipment and the Company’s allocable portion of cost of compensation and related expenses of its Chief Financial Officer and Chief Compliance Officer and their respective staffs, as well as any costs and expenses incurred by the Administrator relating to any administrative or operating services provided by the Administrator to the Company. Such costs are reflected as an administrative fee in the accompanying statements of operations.

The Company has also entered into a fee waiver agreement with the Administrator, pursuant to which the Administrator may waive, in whole or in part, its entitlement to receive reimbursements from the Company.

The Company accrued administrative fees of $66,250, for both the three months ended March 31, 2023 and 2022, as set forth within the accompanying statements of operations.


Related Party Fees

Fees due to related parties as of March 31, 2023 and December 31, 2022 on the Company’s accompanying statements of assets and liabilities were as follows:

 March 31, 2023 December 31, 2022 

    

March 31, 2023

    

December 31, 2022

Net base management fee due to Adviser $720,755  $732,900 

$

720,755

$

732,900

Net incentive fee due to Adviser  443,809   404,409 

 

443,809

 

404,409

Total fees due to Adviser, net of waivers  1,164,564   1,137,309 

 

1,164,564

 

1,137,309

Fee due to Administrator, net of waivers  66,250   66,250 

 

66,250

 

66,250

Total Related Party Fees Due $1,230,814  $1,203,559 

$

1,230,814

$

1,203,559

42

Note 5. Net Increase in Net Assets Resulting from Operations Per Share of Common Stock:

The following table sets forth the computation of basic and diluted net increase in net assets resulting from operations per weighted average share of the Company’s common stock, par value $0.001 per share (the “Common Stock”), for the three months ended March 31, 2023 and 2022:

  Three Months Ended
March 31, 2023
  Three Months Ended
March 31, 2022
 
Numerator for basic and diluted net increase in net assets resulting from operations per common share $7,842,135  $3,045,808 
Denominator for basic and diluted weighted average common shares  45,420,472   42,774,798 
Basic and diluted net increase in net assets resulting from operations per common share $0.17  $0.07 

    

Three Months Ended 

    

Three Months Ended 

March 31, 2023

March 31, 2022

Numerator for basic and diluted net increase in net assets resulting from operations per common share

$

7,842,135

$

3,045,808

Denominator for basic and diluted weighted average common shares

 

45,420,472

 

42,774,798

Basic and diluted net increase in net assets resulting from operations per common share

$

0.17

$

0.07

Note 6. Income Tax

The Company has elected to be regulated as a BDC under the 1940 Act, as well as elected to be treated, and intends to comply with the requirements to qualify annually, as a RIC under Subchapter M of the Code. As a RIC, the Company generally is not subject to corporate-level U.S. federal income taxes on any ordinary income or capital gains that it timely distributes as dividends for U.S. federal income tax purposes to its stockholders. To qualify to be treated as a RIC, the Company is required to meet certain source of income and asset diversification requirements, and to timely distribute dividends out of assets legally available for distributions to its stockholders of an amount generally equal to at least 90% of the sum of its net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any (i.e., “investment company taxable income,” determined without regard to any deduction for dividends paid), for each taxable year. The amount to be paid out as distributions to the Company’s stockholders is determined by the Board of Directors and is based on management’s estimate of the fiscal year earnings. Based on that estimate, the Company intends to make the requisite distributions to its stockholders, which will generally relieve the Company from corporate-level U.S. federal income taxes. Although the Company currently intends to distribute its net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, recognized in respect of each taxable year as dividends out of the Company’s assets legally available for distribution, the Company in the future may decide to retain for investment and be subject to entity-level income tax on such net capital gains. Additionally, depending on the level of taxable income earned in a taxable year, the Company may choose to carry forward taxable income in excess of current year distributions into the next taxable year and incur 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 distributions, the Company will accrue an excise tax, if any, on estimated excess taxable income as such excess taxable income is earned.

During the year ended December 31, 2022, the Fund executed a total of $50,000,000 in Tender Offers that resulted in differing GAAP vs. tax treatment of proceeds distributed. For GAAP purposes the transaction is treated as a redemption of shares whereas tax regulations dictate dividend distribution treatment to the extent of fund level earnings and profits. Given that the fund did not have sufficient earnings and profits to support the distribution, the entire value of the Tender Offer is treated as a return of capital for tax purposes.


The Company had aggregate distributions declared and paid to its stockholders for the year ended December 31, 2022 of $24,507,347, or $0.54 per share. The tax character of the distributions declared and paid represented $23,797,493 from ordinary income and $709,854 from tax return of capital. The Company had aggregate distributions declared and paid to its stockholders for the year ended December 31, 2021 of $15,794,187, or $0.40 per share. The tax character of the distributions declared and paid represented $15,541,807 from ordinary income and $252,380 from tax return of capital.

The determination of the tax attributes of the Company’s distributions, including distributions in connection with tender offers, are made annually at the end of the Company’s taxable year, based upon the Company’s taxable income for the full taxable year and distributions paid for the full taxable year. Therefore, a determination made on an interim basis may not be representative of the actual tax attributes of distributions for a full taxable year. The actual tax characteristics of distributions to stockholders will be reported to the Company’s stockholders subject to information reporting after the close of each calendar.

43

U.S. GAAP requires adjustments to certain components of net assets to reflect permanent differences between financial and tax reporting. These adjustments have no effect on net asset value per share. For the year ended December 31, 2022 and 2021, the Company recorded the following adjustments for permanent book to tax differences to reflect their tax characteristics. The adjustments only change the classification in net assets in the statements of assets and liabilities. During the year ended December 31, 2022 and 2021, the Company reclassified for book purposes amounts arising from permanent book/tax differences primarily related to distribution redesignations and return of capital distributions.

Year Ended

Year Ended 

December 31, 2022

Year Ended

December 31, 2021

Capital in excess of par value

$

-

$

$-

Accumulated net investment income

(430

(430)

)

-

Accumulated net realized gain (loss)

430

-

At December 31, 2022 and 2021, the components of distributable taxable earnings as detailed below differ from the amounts reflected in the Company’s statements of assets and liabilities by temporary book/tax differences primarily arising from amortization of organizational expenditures.

 As of December 31,
2022
  As of December 31,
2021
 

    

As of December 31, 

    

As of December 31, 

2022

2021

Other temporary book/tax differences $(152,362) $(172,677)

$

(152,362)

$

(172,677)

Net tax basis unrealized depreciation  (6,872,198)  (1,238,244)

 

(6,872,198)

 

(1,238,244)

Accumulated net realized loss  (2,500,103)  (3,353,867)

 

(2,500,103)

 

(3,353,867)

Components of tax distributable (loss) earnings at period end $(9,524,663) $(4,764,788)

$

(9,524,663)

$

(4,764,788)

Certain losses incurred by the Company after October 31 of a taxable year are deemed to arise on the first business day of the Company’s next taxable year. The Company did not incur such losses after October 31 of the Company’s taxable year ended December 31, 2022.

Capital losses are generally eligible to be carried forward indefinitely, and retain their status as short-term or long-term in the manner originally incurred by the Company. As of December 31, 2022, the Company has long-term capital loss carryforward of $2,500,103. The Company has evaluated tax positions it has taken, expects to take, or that are otherwise relevant to the Company for purposes of determining whether any relevant tax positions would “more-likely-than-not” be sustained by the applicable tax authority in accordance with ASC Topic 740, “Income Taxes,” as modified by ASC Topic 946. The Company has analyzed such tax positions and has concluded that no unrecognized tax benefits should be recorded for uncertain tax positions for taxable years that may be open. The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. The Company’s U.S. federal tax returns for fiscal years 2020, 2021, and 2022 remain subject to examination by the Internal Revenue Service. The Company records tax positions that are not deemed to meet a more-likely-than-not threshold as tax expenses as well as any applicable penalties or interest associated with such positions. During each of the years ended December 31, 2022, 2021, and 2020, no tax expense or any related interest or penalties were incurred.

44


Note 7. Equity

An investor made capital commitments to the Company in the amounts set forth below as of the date opposite each capital commitment:

AmountAmount Date 

Amount

    

Date

$140,000,000 June 23, 2015 

140,000,000

June 23, 2015

$50,000,000 December 2, 2016 

50,000,000

December 2, 2016

$100,000,000 On December 7, 2017 

100,000,000

On December 7, 2017

$40,000,000 March 22, 2019 

40,000,000

March 22, 2019

$30,000,000 September 23, 2019 

30,000,000

September 23, 2019

$11,200,000 March 20, 2020 

11,200,000

March 20, 2020

$8,900,000 May 28, 2021 

8,900,000

May 28, 2021

$110,000,000 December 15, 2021 

110,000,000

December 15, 2021

As of March 31, 2023, there were no remaining unfunded capital commitments by the Company’s investors.

The number of shares of Common Stock issued and outstanding as of March 31, 2023 and December 31, 2022, were 44,753,084 and 46,376,461, respectively.

The following table details the activity of Stockholders’ Equity for the three months ended March 31, 2023 and 2022:

    

    

Capital in 

    

Total 

    

Total 

Excess of Par 

Distributable 

Stockholders' 

Three Months Ended March 31, 2023 Common Stock Capital in
Excess of Par
Value
 Total
Distributable
(Loss) Earnings
 Total
Stockholders'
Equity
 

Common Stock

Value

(Loss) Earnings

Equity

Balance as of December 31, 2022 $46,376  $437,955,965  $(9,524,663) $428,477,678 

$

46,376

$

437,955,965

$

(9,524,663)

$

428,477,678

Net investment income  -   -   8,442,859   8,442,859 

 

 

 

8,442,859

 

8,442,859

Net realized loss from investment transactions  -   -   (43,997)  (43,997)

 

 

 

(43,997)

 

(43,997)

Net change in unrealized depreciation on investments  -   -   (556,727)  (556,727)

 

 

 

(556,727)

 

(556,727)

Repurchase of shares  (1,623)  (14,998,377)  -   (15,000,000)

 

(1,623)

 

(14,998,377)

 

 

(15,000,000)

Balance as of March 31, 2023 $44,753  $422,957,588  $(1,682,528) $421,319,813 

$

44,753

$

422,957,588

$

(1,682,528)

$

421,319,813

    

    

    

Total 

    

Capital in 

Distributable 

Total 

Excess 

(Loss) 

Stockholders' 

Three Months Ended March 31, 2022 Common Stock  Capital in Excess
of Par Value
  Total
Distributable
(Loss) Earnings
  Total
Stockholders'
Equity
 

Common Stock

of Par Value

 

Earnings

Equity

Balance as of December 31, 2021 $39,961  $378,672,161  $(4,764,788) $373,947,334 

$

39,961

$

378,672,161

$

(4,764,788)

$

373,947,334

Net investment income  -   -   4,386,185   4,386,185 

 

 

 

4,386,185

 

4,386,185

Net realized gain from investment transactions  -   -   225,786   225,786 

 

 

 

225,786

 

225,786

Net change in unrealized depreciation on investments  -   -   (1,566,163)  (1,566,163)

 

 

 

(1,566,163)

 

(1,566,163)

Issuance of shares  3,206   29,996,794   -   30,000,000 

 

3,206

 

29,996,794

 

 

30,000,000

Balance as of March 31, 2022 $43,167  $408,668,955  $(1,718,980) $406,993,142 

$

43,167

$

408,668,955

$

(1,718,980)

$

406,993,142


Note 8. Borrowings

Short-Term Borrowings

From time to time, the Company finances the purchase of certain investments through repurchase agreements. In the repurchase agreements, the Company enters into a trade to sell an investment and contemporaneously enters into a trade to buy the same investment back on a specified date in the future with the same counterparty. Investments sold under repurchase agreements are accounted for as collateralized borrowings as the sale of the investment does not qualify for sale accounting under ASC Topic 860—Transfers and Servicing and remains as an investment on the Statement of Assets and Liabilities. The

45

Company uses repurchase agreements as a short-term financing alternative. As of March 31, 2023, the Company had short-term borrowing outstanding of $8,724,062. For the three months ended March 31, 2023, the Company recorded interest expense of $227,652 in connection with short-term borrowings. As of December 31, 2022, the Company had short-term borrowings outstanding of $13,178,611. For the three months ended March 31, 2022, the Company recorded interest expense in connection with short-term borrowings of $41,166.

46

Note 9. Commitments and Contingencies

The Company may enter into certain credit agreements that include loan commitments where all or a portion of such commitment may be unfunded. The Company is generally obligated to fund the unfunded loan commitments at the borrowers’ discretion. Funded portions of credit agreements are presented on the accompanying schedule of investments. Unfunded loan commitments and funded portions of credit agreements are fair valued and unrealized appreciation or depreciation, if any, have been included in the accompanying statements of assets and liabilities and statements of operations.


The following table summarizes the Company’s significant contractual payment obligations as of March 31, 2023 and December 31, 2022:

Investment Industry March 31, 2023 December 31, 2022 
PracticeTek, Senior Secured Delayed Draw Term Loan, 10.44% (LIBOR + 5.25%), maturity 11/23/27 High Tech Industries $1,889,313 $1,889,313 
Industrial Services Group, Senior Secured Delayed Draw Term Loan, 11.16% (SOFR + 6.25%), maturity 12/7/28 Services: Business  1,428,571  1,428,571 
EdgeCo, Senior Secured Delayed Draw Term D Loan (First Lien), 9.94% (LIBOR + 4.75%), maturity 6/1/26 Banking, Finance, Insurance & Real Estate  1,200,000  1,200,000 
VC3, Senior Secured Delayed Draw Term Loan D, 10.16% (SOFR + 5.25%), maturity 3/12/27 Services: Business  1,176,923  1,176,923 
Golden Source, Senior Secured Delayed Draw Term Loan, 10.41% (SOFR + 5.50%), maturity 5/12/28 Services: Business  938,967  938,967 
InterMed, Senior Secured Delayed Draw Term Loan, 11.41% (SOFR + 6.50%), maturity 12/24/29 Healthcare & Pharmaceuticals  863,931  863,931 
InterMed, Senior Secured Revolving Loan, 11.41% (SOFR + 6.50%), maturity 12/24/28 Healthcare & Pharmaceuticals  863,931  846,172 
Discovery Education, Senior Secured Delayed Draw Term Loan (First Lien), 10.66% (SOFR + 5.75%), maturity 4/6/29 Services: Business  807,692  718,563 
Ned Stevens 2022-2, Senior Secured Delayed Draw Term Loan, 11.66% (SOFR + 6.75%), maturity 11/1/29 Services: Consumer  731,092  807,692 
CPI International, Senior Secured Delayed Draw Term Loan, 10.41% (SOFR + 5.50%), maturity 10/6/24 Aerospace & Defense  718,563  687,983 
Cherry Bekaert, Senior Secured Delayed Draw Term Loan, 10.41% (SOFR + 5.50%), maturity 6/30/28 Banking, Finance, Insurance & Real Estate  687,983  629,630 
Eliassen, Senior Secured Initial Delayed Draw Term Loan, 10.66% (SOFR + 5.75%), maturity 4/7/28 Services: Business  629,630  625,344 
A1 Garage Door Service, Senior Secured Closing Date Delayed Draw Term Loan, 11.41% (SOFR + 6.50%), maturity 12/23/28 Construction & Building  571,556  571,429 
Alera, Senior Secured 2022 Delayed Draw Term Loan, 11.41% (SOFR + 6.50%), maturity 9/30/28 Banking, Finance, Insurance & Real Estate  540,000  1,173,333 
Golden Source, Senior Secured Revolving Loan, 10.41% (SOFR + 5.50%), maturity 5/12/28 Services: Business  469,484  469,484 
CoolSys, Senior Secured Delayed Draw Term Loan, 9.94% (LIBOR + 4.75%), maturity 8/11/28 Services: Business  465,278  465,278 
Advancing Eyecare, Senior Secured Initial Delayed Draw Term Loan, 10.66% (SOFR + 5.75%), maturity 6/29/29 Healthcare & Pharmaceuticals  462,000  462,000 
Cherry Bekaert, Senior Secured Revolving Credit Loan, 10.41% (SOFR + 5.50%), maturity 6/30/28 Banking, Finance, Insurance & Real Estate  431,531  431,530 
Industrial Services Group, Senior Secured Revolving Loan, 11.16% (SOFR + 6.25%), maturity 12/7/28 Services: Business  413,333  513,699 
Vertellus, Senior Secured Revolving Credit Loan, 10.66% (SOFR + 5.75%), maturity 12/22/25 Chemicals, Plastics & Rubber  412,023  486,239 
RevHealth, Senior Secured Revolving Loan, 10.66% (SOFR + 5.75%), maturity 7/22/28 Healthcare & Pharmaceuticals  405,822  308,344 
Blue Cloud, Senior Secured Delayed Draw Term Loan, 9.91% (SOFR + 5.00%), maturity 1/21/28 Healthcare & Pharmaceuticals  400,000  400,000 
Micro Merchant Systems, Senior Secured Delayed Draw Term Loan, 10.66% (SOFR + 5.75%), maturity 12/14/27 Healthcare & Pharmaceuticals  370,370  370,370 
InnovateMR, Senior Secured Revolving Loan, 11.19% (LIBOR + 6.00%), maturity 1/20/28 Services: Business  365,388  365,388 
PracticeTek, Senior Secured Revolving Loan, 10.44% (LIBOR + 5.25%), maturity 11/23/27 High Tech Industries  357,824  357,824 
Ned Stevens 2022-2, Senior Secured Revolving Loan, 11.66% (SOFR + 6.75%), maturity 11/1/29 Services: Consumer  338,469  338,469 
Evans Network, Senior Secured Delayed Draw Term Loan (First Lien), 9.44% (LIBOR + 4.25%), maturity 8/19/28 Transportation: Cargo  326,531  326,531 
Paragon Films, Senior Secured Delayed Draw Term Loan (First Lien), 10.19% (LIBOR + 5.00%), maturity 12/16/28 Containers, Packaging & Glass  297,030  297,030 
MediaRadar, Senior Secured Revolving Loan, 10.91% (SOFR + 6.00%), maturity 7/22/28 Media: Advertising, Printing & Publishing  296,296  296,296 
Cerity Partners, Senior Secured Initial Revolving Loan, 10.66% (SOFR + 5.75%), maturity 7/27/28 Banking, Finance, Insurance & Real Estate  286,738  - 
A1 Garage Door Service, Senior Secured Revolving Loan, 11.41% (SOFR + 6.50%), maturity 12/23/28 Construction & Building  275,482  275,482 
Whitcraft, Senior Secured Revolving Credit Loan, 11.91% (SOFR + 7.00%), maturity 2/15/29 Aerospace & Defense  267,857  - 
Burke Porter Group, Senior Secured Revolving Credit Loan, 10.91% (SOFR + 6.00%), maturity 7/29/28 Capital Equipment  265,000  286,738 
Accolite, Senior Secured Initial DDTL Loan, 10.91% (SOFR + 6.00%), maturity 4/10/29 Services: Business  250,000  - 
Discovery Education, Senior Secured Revolving Credit Loan (First Lien), 10.66% (SOFR + 5.75%), maturity 4/7/28 Services: Business  230,769  230,769 
Liberty Group, Senior Secured Revolving Loan, 10.66% (SOFR + 5.75%), maturity 6/9/28 Services: Business  227,273  227,273 
Liberty Group, Senior Secured Delayed Draw Term Loan, 10.66% (SOFR + 5.75%), maturity 6/9/28 Services: Business  204,545  200,001 
USALCO, Senior Secured Revolving Loan, 11.19% (LIBOR + 6.00%), maturity 10/19/26 Chemicals, Plastics & Rubber  201,613  204,545 
Radwell, Senior Secured Delayed Draw Term Loan, 10.66% (SOFR + 5.75%), maturity 4/1/29 Capital Equipment  200,001  185,484 
Beta+, Senior Secured Revolving Credit Loan, 10.16% (SOFR + 5.25%), maturity 7/1/27 Banking, Finance, Insurance & Real Estate  192,573  276,289 
The Facilities Group, Senior Secured Delayed Draw Term Loan, 10.94% (LIBOR + 5.75%), maturity 11/30/27 Services: Business  185,549  266,185 
Alliance Environmental Group, Senior Secured Delayed Draw Term Loan, 11.19% (LIBOR + 6.00%), maturity 12/30/27 Environmental Industries  182,119  177,273 
Epic Staffing Group, Senior Secured Delayed Draw Term Loan, 10.91% (SOFR + 6.00%), maturity 6/28/29 Healthcare & Pharmaceuticals  174,419  174,419 
Ivy Rehab, Senior Secured Revolving Credit Loan (First Lien), 9.66% (SOFR + 4.75%), maturity 4/21/28 Healthcare & Pharmaceuticals  168,350  168,350 
Health Management Associates, Senior Secured Delayed Draw Term Loan, 11.16% (SOFR + 6.25%), maturity 3/31/29 Services: Business  159,858  - 
Insight Global, Senior Secured Revolving Loan, 11.19% (LIBOR + 6.00%), maturity 9/22/27 Services: Business  134,178  80,507 
Hissho Sushi, Senior Secured Revolving Credit Loan, 10.91% (SOFR + 6.00%), maturity 5/18/28 Beverage, Food & Tobacco  133,333  111,111 
EPIC Insurance, Senior Secured Revolving Loan, 10.44% (LIBOR + 5.25%), maturity 9/30/27 Banking, Finance, Insurance & Real Estate  127,046  161,841 
Cleaver Brooks, Senior Secured Revolving Loan, 10.66% (SOFR + 5.75%), maturity 7/31/28 Capital Equipment  123,077  113,834 
Community Brands, Senior Secured Delayed Draw Term Loan, 10.66% (SOFR + 5.75%), maturity 2/24/28 Banking, Finance, Insurance & Real Estate  117,647  118,154 
Omni Logistics, Senior Secured Revolving Credit Loan (First Lien), 10.19% (LIBOR + 5.00%), maturity 12/30/25 Transportation: Cargo  113,834  117,647 
Micro Merchant Systems, Senior Secured Revolving Loan, 10.66% (SOFR + 5.75%), maturity 12/14/27 Healthcare & Pharmaceuticals  111,111  114,286 
InnovateMR, Senior Secured Delayed Draw Term Loan, 11.69% (LIBOR + 6.50%), maturity 1/20/28 Services: Business  108,981  - 
Tank Holding, Senior Secured Revolving Credit Loan, 10.91% (SOFR + 6.00%), maturity 3/31/28 Capital Equipment  103,385  161,041 
FLS Transportation, Senior Secured Revolving Credit Loan, 10.44% (LIBOR + 5.25%), maturity 12/17/27 Transportation: Cargo  88,889  107,692 
BlueHalo, Senior Secured Revolving Loan, 11.69% (LIBOR + 6.50%), maturity 10/31/25 Aerospace & Defense  85,958  16,556 
Ansira, Senior Secured New Delayed Draw Term Loan, 6.50% (Fixed), maturity 12/20/24 Media: Advertising, Printing & Publishing  84,290  88,889 
Radwell, Senior Secured Revolving Loan, 10.66% (SOFR + 5.75%), maturity 4/1/28 Capital Equipment  77,332  79,998 
VC3, Senior Secured Revolving Credit, 10.16% (SOFR + 5.25%), maturity 3/12/27 Services: Business  76,923  76,923 
CPS, Senior Secured Revolving Credit Loan, 10.69% (LIBOR + 5.50%), maturity 6/1/28 Healthcare & Pharmaceuticals  71,414  68,750 
Applied Adhesives, Senior Secured Revolving Loan, 9.94% (LIBOR + 4.75%), maturity 3/12/27 Containers, Packaging & Glass  71,111  71,414 
Community Brands, Senior Secured Revolving Loan, 10.66% (SOFR + 5.75%), maturity 2/24/28 Banking, Finance, Insurance & Real Estate  58,824  58,824 
Keter Environmental Services, Senior Secured Revolving Loan, 11.69% (LIBOR + 6.50%), maturity 10/29/27 Environmental Industries  50,160  50,160 
Blue Cloud, Senior Secured Revolving Loan, 9.91% (SOFR + 5.00%), maturity 1/21/28 Healthcare & Pharmaceuticals  46,591  182,119 
Magnate, Senior Secured Delayed Draw Term Loan (First Lien), 10.69% (LIBOR + 5.50%), maturity 12/29/28 Transportation: Cargo  36,607  36,607 
Alliance Environmental Group, Senior Secured Revolving Loan, 11.19% (LIBOR + 6.00%), maturity 12/30/27 Environmental Industries  33,113  17,551 
Health Management Associates, Senior Secured Revolving Loan, 11.16% (SOFR + 6.25%), maturity 3/31/29 Services: Business  28,419  - 
EPIC Insurance, Senior Secured Delayed Draw Term Loan, 10.44% (LIBOR + 5.25%), maturity 9/29/28 Banking, Finance, Insurance & Real Estate  21,877  21,877 
Ivy Rehab, Senior Secured Delayed Draw Term Loan (First Lien), 9.66% (SOFR + 4.75%), maturity 4/23/29 Healthcare & Pharmaceuticals  12,092  176,471 
Forefront, Senior Secured Delayed Draw Term Loan, 9.16% (SOFR + 4.25%), maturity 4/1/29 Healthcare & Pharmaceuticals  5,660  7,786 
Omni Logistics, Senior Secured Tranche 2 DDTL (First Lien) Retired 03/22/2023, 10.19% (LIBOR + 5.00%), maturity 12/30/26 Transportation: Cargo  -  71,111 
Applied Adhesives, Senior Secured Delayed Draw Term Loan, 9.69% (LIBOR + 4.50%), maturity 3/12/27 Containers, Packaging & Glass  -  27,721 
    $24,253,527 $24,258,010 

Investment

Investment Type

Index

Spread

Interest Rate

Maturity Date

Industry

March 31, 2023

December 31, 2022

PracticeTek

 

Senior Secured Delayed Draw Term Loan

 

L+

10.44

%

5.25

%  

11/23/27

 

High Tech Industries

 

$

1,889,313

 

$

1,889,313

Industrial Services Group

 

Senior Secured Delayed Draw Term Loan

 

S+

11.16

%

6.25

%  

12/7/28

 

Services: Business

1,428,571

1,428,571

EdgeCo

 

Senior Secured Delayed Draw Term D Loan (First Lien)

 

L+

9.94

%

4.75

%  

6/1/26

 

Banking, Finance, Insurance & Real Estate

1,200,000

1,200,000

VC3

 

Senior Secured Delayed Draw Term Loan D

 

S+

10.16

%

5.25

%  

3/12/27

 

Services: Business

1,176,923

1,176,923

Golden Source

 

Senior Secured Delayed Draw Term Loan

 

S+

10.41

%

5.50

%  

5/12/28

 

Services: Business

938,967

938,967

InterMed

 

Senior Secured Delayed Draw Term Loan

 

S+

11.41

%

6.50

%  

12/24/29

 

Healthcare & Pharmaceuticals

863,931

863,931

InterMed

 

Senior Secured Revolving Loan

 

S+

11.41

%

6.50

%  

12/24/28

 

Healthcare & Pharmaceuticals

863,931

846,172

Discovery Education

 

Senior Secured Delayed Draw Term Loan (First Lien)

 

S+

10.66

%

5.75

%  

4/6/29

 

Services: Business

807,692

718,563

Ned Stevens 2022-2

 

Senior Secured Delayed Draw Term Loan

 

S+

11.66

%

6.75

%  

11/1/29

 

Services: Consumer

731,092

807,692

CPI International

 

Senior Secured Delayed Draw Term Loan

 

S+

10.41

%

5.50

%  

10/6/24

 

Aerospace & Defense

718,563

687,983

Cherry Bekaert

 

Senior Secured Delayed Draw Term Loan

 

S+

10.41

%

5.50

%  

6/30/28

 

Banking, Finance, Insurance & Real Estate

687,983

629,630

Eliassen

 

Senior Secured Initial Delayed Draw Term Loan

 

S+

10.66

%

5.75

%  

4/7/28

 

Services: Business

629,630

625,344

A1 Garage Door Service

 

Senior Secured Closing Date Delayed Draw Term Loan

 

S+

11.41

%

6.50

%  

12/23/28

 

Construction & Building

571,556

571,429

Alera

 

Senior Secured 2022 Delayed Draw Term Loan

 

S+

11.41

%

6.50

%

9/30/28

 

Banking, Finance, Insurance & Real Estate

540,000

1,173,333

Golden Source

 

Senior Secured Revolving Loan

 

S+

10.41

%

5.50

%  

5/12/28

 

Services: Business

469,484

469,484

CoolSys

 

Senior Secured Delayed Draw Term Loan

 

L+

9.94

%

4.75

%  

8/11/28

 

Services: Business

465,278

465,278

Advancing Eyecare

 

Senior Secured Initial Delayed Draw Term Loan

 

S+

10.66

%

5.75

%  

6/29/29

 

Healthcare & Pharmaceuticals

462,000

462,000

Cherry Bekaert

 

Senior Secured Revolving Credit Loan

 

S+

10.41

%

5.50

%  

6/30/28

 

Banking, Finance, Insurance & Real Estate

431,531

431,530

Industrial Services Group

 

Senior Secured Revolving Loan

 

S+

11.16

%

6.25

%  

12/7/28

 

Services: Business

413,333

513,699

Vertellus

 

Senior Secured Revolving Credit Loan

 

S+

10.66

%

5.75

%  

12/22/25

 

Chemicals, Plastics & Rubber

412,023

486,239

RevHealth

 

Senior Secured Revolving Loan

 

S+

10.66

%

5.75

%  

7/22/28

 

Healthcare & Pharmaceuticals

405,822

308,344

Blue Cloud

 

Senior Secured Delayed Draw Term Loan

 

S+

9.91

%

5.00

%  

1/21/28

 

Healthcare & Pharmaceuticals

400,000

400,000

Micro Merchant Systems

 

Senior Secured Delayed Draw Term Loan

 

S+

10.66

%

5.75

%  

12/14/27

 

Healthcare & Pharmaceuticals

370,370

370,370

InnovateMR

 

Senior Secured Revolving Loan

 

L+

11.19

%

6.00

%  

1/20/28

 

Services: Business

365,388

365,388

PracticeTek

 

Senior Secured Revolving Loan

 

L+

10.44

%

5.25

%  

11/23/27

 

High Tech Industries

357,824

357,824

Ned Stevens 2022-2

 

Senior Secured Revolving Loan

 

S+

11.66

%

6.75

%  

11/1/29

 

Services: Consumer

338,469

338,469

Evans Network

 

Senior Secured Delayed Draw Term Loan (First Lien)

 

L+

9.44

%

4.25

%  

8/19/28

 

Transportation: Cargo

326,531

326,531

Paragon Films

 

Senior Secured Delayed Draw Term Loan (First Lien)

 

L+

10.19

%

5.00

%  

12/16/28

 

Containers, Packaging & Glass

297,030

297,030

MediaRadar

 

Senior Secured Revolving Loan

 

S+

10.91

%

6.00

%  

7/22/28

 

Media: Advertising, Printing & Publishing

296,296

296,296

Cerity Partners

 

Senior Secured Initial Revolving Loan

 

S+

10.66

%

5.75

%  

7/27/28

 

Banking, Finance, Insurance & Real Estate

286,738

A1 Garage Door Service

 

Senior Secured Revolving Loan

 

S+

11.41

%

6.50

%  

12/23/28

 

Construction & Building

275,482

275,482

Whitcraft

 

Senior Secured Revolving Credit Loan

 

S+

11.91

%

7.00

%  

2/15/29

 

Aerospace & Defense

267,857

Burke Porter Group

 

Senior Secured Revolving Credit Loan

 

S+

10.91

%

6.00

%  

7/29/28

 

Capital Equipment

265,000

286,738

Accolite

 

Senior Secured Initial DDTL Loan

 

S+

10.91

%

6.00

%  

4/10/29

 

Services: Business

250,000

Discovery Education

 

Senior Secured Revolving Credit Loan (First Lien)

 

S+

10.66

%

5.75

%  

4/7/28

 

Services: Business

230,769

230,769

Liberty Group

 

Senior Secured Revolving Loan

 

S+

10.66

%

5.75

%  

6/9/28

 

Services: Business

227,273

227,273

Liberty Group

 

Senior Secured Delayed Draw Term Loan

 

S+

10.66

%

5.75

%  

6/9/28

 

Services: Business

204,545

200,001

USALCO

 

Senior Secured Revolving Loan

 

L+

11.19

%

6.00

%  

10/19/26

 

Chemicals, Plastics & Rubber

201,613

204,545

Radwell

 

Senior Secured Delayed Draw Term Loan

 

S+

10.66

%

5.75

%  

4/1/29

 

Capital Equipment

200,001

185,484

Beta+

 

Senior Secured Revolving Credit Loan

 

S+

10.16

%

5.25

%  

7/1/27

 

Banking, Finance, Insurance & Real Estate

192,573

276,289

The Facilities Group

 

Senior Secured Delayed Draw Term Loan

 

L+

10.94

%

5.75

%  

11/30/27

 

Services: Business

185,549

266,185

Alliance Environmental Group

 

Senior Secured Delayed Draw Term Loan

 

L+

11.19

%

6.00

%  

12/30/27

 

Environmental Industries

182,119

177,273

Epic Staffing Group

 

Senior Secured Delayed Draw Term Loan

 

S+

10.91

%

6.00

%  

6/28/29

 

Healthcare & Pharmaceuticals

174,419

174,419

47

Investment

Investment Type

Index

Spread

Interest Rate

Maturity Date

Industry

March 31, 2023

December 31, 2022

Ivy Rehab

 

Senior Secured Revolving Credit Loan (First Lien)

 

S+

9.66

%

4.75

%  

4/21/28

 

Healthcare & Pharmaceuticals

 

168,350

 

168,350

Health Management Associates

 

Senior Secured Delayed Draw Term Loan

 

S+

11.16

%

6.25

%  

3/31/29

 

Services: Business

159,858

Insight Global

 

Senior Secured Revolving Loan

 

L+

11.19

%

6.00

%  

9/22/27

 

Services: Business

134,178

80,507

Hissho Sushi

 

Senior Secured Revolving Credit Loan

 

S+

10.91

%

6.00

%  

5/18/28

 

Beverage, Food & Tobacco

133,333

111,111

EPIC Insurance

 

Senior Secured Revolving Loan

 

L+

10.44

%

5.25

%  

9/30/27

 

Banking, Finance, Insurance & Real Estate

127,046

161,841

Cleaver Brooks

 

Senior Secured Revolving Loan

 

S+

10.66

%

5.75

%  

7/31/28

 

Capital Equipment

123,077

113,834

Community Brands

 

Senior Secured Delayed Draw Term Loan

 

S+

10.66

%

5.75

%  

2/24/28

 

Banking, Finance, Insurance & Real Estate

117,647

118,154

Omni Logistics

 

Senior Secured Revolving Credit Loan (First Lien)

 

L+

10.19

%

5.00

%  

12/30/25

 

Transportation: Cargo

113,834

117,647

Micro Merchant Systems

 

Senior Secured Revolving Loan

 

S+

10.66

%

5.75

%  

12/14/27

 

Healthcare & Pharmaceuticals

111,111

114,286

InnovateMR

 

Senior Secured Delayed Draw Term Loan

 

L+

11.69

%

6.50

%  

1/20/28

 

Services: Business

108,981

Tank Holding

 

Senior Secured Revolving Credit Loan

 

S+

10.91

%

6.00

%  

3/31/28

 

Capital Equipment

103,385

161,041

FLS Transportation

 

Senior Secured Revolving Credit Loan

 

L+

10.44

%

5.25

%  

12/17/27

 

Transportation: Cargo

88,889

107,692

BlueHalo

 

Senior Secured Revolving Loan

 

L+

11.69

%

6.50

%  

10/31/25

 

Aerospace & Defense

85,958

16,556

Ansira

 

Senior Secured New Delayed Draw Term Loan

 

Fixed

6.50

%

12/20/24

 

Media: Advertising, Printing & Publishing

84,290

88,889

Radwell

 

Senior Secured Revolving Loan

 

S+

10.66

%

5.75

%  

4/1/28

 

Capital Equipment

77,332

79,998

VC3

 

Senior Secured Revolving Credit

 

S+

10.16

%

5.25

%  

3/12/27

 

Services: Business

76,923

76,923

CPS

 

Senior Secured Revolving Credit Loan

 

L+

10.69

%

5.50

%  

6/1/28

 

Healthcare & Pharmaceuticals

71,414

68,750

Applied Adhesives

 

Senior Secured Revolving Loan

 

L+

9.94

%

4.75

%  

3/12/27

 

Containers, Packaging & Glass

71,111

71,414

Community Brands

 

Senior Secured Revolving Loan

 

S+

10.66

%

5.75

%  

2/24/28

 

Banking, Finance, Insurance & Real Estate

58,824

58,824

Keter Environmental Services

 

Senior Secured Revolving Loan

 

L+

11.69

%

6.50

%  

10/29/27

 

Environmental Industries

50,160

50,160

Blue Cloud

 

Senior Secured Revolving Loan

 

S+

9.91

%

5.00

%  

1/21/28

 

Healthcare & Pharmaceuticals

46,591

182,119

Magnate

 

Senior Secured Delayed Draw Term Loan (First Lien)

 

L+

10.69

%

5.50

%  

12/29/28

 

Transportation: Cargo

36,607

36,607

Alliance Environmental Group

 

Senior Secured Revolving Loan

 

L+

11.19

%

6.00

%  

12/30/27

 

Environmental Industries

33,113

17,551

Health Management Associates

 

Senior Secured Revolving Loan

 

S+

11.16

%

6.25

%  

3/31/29

 

Services: Business

28,419

EPIC Insurance

 

Senior Secured Delayed Draw Term Loan

 

L+

10.44

%

5.25

%  

9/29/28

 

Banking, Finance, Insurance & Real Estate

21,877

21,877

Ivy Rehab

 

Senior Secured Delayed Draw Term Loan (First Lien)

 

S+

9.66

%

4.75

%  

4/23/29

 

Healthcare & Pharmaceuticals

12,092

176,471

Forefront

 

Senior Secured Delayed Draw Term Loan

 

S+

9.16

%

4.25

%  

4/1/29

 

Healthcare & Pharmaceuticals

5,660

7,786

Omni Logistics

 

Senior Secured Tranche 2 DDTL (First Lien) Retired 03/22/2023

 

L+

10.19

%

5.00

%  

12/30/26

 

Transportation: Cargo

71,111

Applied Adhesives

 

Senior Secured Delayed Draw Term Loan

 

L+

9.69

%

4.50

%  

3/12/27

 

Containers, Packaging & Glass

27,721

 

 

 

$

24,253,527

$

24,258,010

Unfunded commitments represent all amounts unfunded as of March 31, 2023 and December 31, 2022. These amounts may or may not be funded to the borrowing party now or in the future.


48

Note 10. Financial Highlights

  Three Months Ended
March 31, 2023
  Three Months Ended
March 31, 2022
 
Per Share Data:        
Net asset value, beginning of period $9.24  $9.36 
Net investment income(a)  0.19   0.10 
Net realized (loss) gain on investments and change in unrealized depreciation on investments(a)(b)  (0.02)  (0.03)
Net increase in net assets resulting from operations $0.17  $0.07 
Net asset value at end of period $9.41  $9.43 
Total return(c)  1.84%  0.75%
Shares of common stock outstanding at end of period  44,753,084   43,166,536 
         
Statement of Assets and Liabilities Data:        
Net assets at end of period $421,319,813  $406,993,142 
Average net assets(d)  424,072,674   406,436,056 
         
Ratio/Supplemental Data:        
Ratio of gross expenses to average net assets - annualized(e)  2.84%  1.79%
Ratio of net expenses to average net assets - annualized(f)  1.62%  1.04%
Ratio of net investment income to average net assets - annualized  8.07%  4.38%
Portfolio turnover(g)  2.09%  0.99%

    

Three Months Ended 

    

Three Months Ended 

 

March 31, 2023

March 31, 2022

 

Per Share Data:

Net asset value, beginning of period

$

9.24

$

9.36

Net investment income(a)

 

0.19

 

0.10

Net realized (loss) gain on investments and change in unrealized depreciation on investments(a)(b)

 

(0.02)

 

(0.03)

Net increase in net assets resulting from operations

$

0.17

$

0.07

Net asset value at end of period

$

9.41

$

9.43

Total return(c)

 

1.84

%  

 

0.75

%

Shares of common stock outstanding at end of period

 

44,753,084

 

43,166,536

Statement of Assets and Liabilities Data:

 

  

 

  

Net assets at end of period

$

421,319,813

$

406,993,142

Average net assets(d)

 

424,072,674

 

406,436,056

Ratio/Supplemental Data:

 

  

 

  

Ratio of gross expenses to average net assets - annualized(e)

 

2.84

%  

 

1.79

%

Ratio of net expenses to average net assets - annualized(f)

 

1.62

%  

 

1.04

%

Ratio of net investment income to average net assets - annualized

 

8.07

%  

 

4.38

%

Portfolio turnover(g)

 

2.09

%  

 

0.99

%

(a)

Based on weighted average basic per share of Common Stock data.

(b)

The per share amount varies from the net realized and unrealized gain (loss) for the period because of the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such time.

(c)

Total return is based on the change in net asset value during the respective periods. Total return also takes into account dividends and distributions, if any, reinvested in accordance with the Company'sCompany’s dividend reinvestment plan.

(d)

Average net assets are computed using the average balance of net assets at the end of each month of the reporting period.

(e)

Ratio of gross expenses to average net assets is computed using expenses before waivers from the Adviser and Administrator.

(f)

Ratio of net expenses to average net assets is computed using total expenses net of waivers from the Adviser and Administrator.

(g)

Not annualized.

49

Note 11. Indemnification

In the normal course of business, the Company may enter into certain contracts that provide a variety of indemnities. The Company’s maximum exposure under these indemnities is unknown. The Company does not consider it necessary to record a liability in this regard.

Note 12. Subsequent Events

Subsequent to March 31, 2023 through May 12, 2023, the Company invested $8,156,066 at cost in 22 different portfolio companies. On March 27, 2023, the Company issued a Tender Offer to repurchase $15.0 million worth of Common Stock from the Stockholder. The Offer was accepted on April 24, 2023.


50

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

In this quarterly report on Form 10-Q, except where the context suggests otherwise, the terms “we,” us,” our” and the “Company” refer to Audax Credit BDC Inc. The information contained in this section should be read in the conjunction with the financial statements and notes to the financial statements appearing elsewhere in this quarterly report.

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

our future operating results;
our business prospects and the prospects of our portfolio companies;
changes in political, economic or industry conditions, rising interest rates and conditions affecting the financial and capital markets, which could result in changes to the value of our assets;
changes in the general economy, slowing economy, rising inflation and risk of recession;
supply chain disruptions in connection with shutdowns in China and elsewhere and similar factors related to COVID-19;
uncertainty surrounding financial and political stability of the United States, the United Kingdom, the European Union, and China, and the war between Russia and Ukraine;
the ability of our portfolio companies to achieve their objectives;
the timing of cash flows, if any, from the operations of our portfolio companies;
the ability of our Adviser to locate suitable investments for us and to monitor and administer our investments;
risk associated with possible disruptions in our operations or the economy generally;
the effect of investments that we expect to make;
our contractual arrangements and relationships with third parties;
actual and potential conflicts of interest with Adviser and its affiliates;
the dependence of our future success on the general economy and its effect on the industries in which we invest;
our ability to continue to effectively manage our business due to COVID-19 and similar pandemics;
the adequacy of our financing sources and working capital;
the ability of our Adviser and its affiliates to attract and retain highly talented professionals;
our ability to qualify and maintain our qualification as a BDC and as a RIC; and
the risks, uncertainties and other factors we identify under “Item 1A. Risk Factors” and elsewhere in our Annual Report on Form 10-K filed on March 20, 2023 (file no. 814-01154) (the “Annual Report”).

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this quarterly report should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include those described or identified in the section entitled “Item 1A. Risk Factors” of this quarterly report and our Annual Report as well as risk factors described or identified in other filings we may make with the SEC from time to time.time. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this quarterly report. Moreover, we assume no duty and do not undertake to update the forward-looking statements. The forward-looking statements and projections contained in this quarterly report are excluded from the safe harbor protection provided by Section 27A of the Securities Act and provided by Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

51


OVERVIEW

Audax Credit BDC Inc. is a Delaware corporation that was formed on January 29, 2015. We are an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a BDC under the 1940 Act. In addition, we have elected to be treated for U.S. federal income tax purposes, and intends to comply with the requirements to qualify annually, as a RIC under Subchapter M of the Code.

Our investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. We intend to meet our investment objective by investing primarily in senior secured debt of privately owned U.S. middle market companies. We intend to invest at least 80% of our net assets plus the amount of any borrowings in “credit instruments,” which we define as any fixed income instruments.

Although we have no present intention of doing so, we may decide to incur leverage. If we do incur leverage, however, we anticipate that it will be used in limited circumstances and on a short-term basis for purposes such as funding distributions. As a BDC, we are limited in our use of leverage under the 1940 Act. Under the 1940 Act, a BDC generally is required to maintain asset coverage of 200% for senior securities representing indebtedness (such as borrowings from banks or other financial institutions) or stock (such as preferred stock). The Small Business Credit Availability Act (the “SBCAA”), which was signed into law on March 23, 2018, provides that a BDC'sBDC’s required asset coverage under the 1940 Act may be reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity). This reduction in asset coverage permits a BDC to double the amount of leverage it may utilize, subject to certain approval, timing and reporting requirements, including either stockholder approval or approval of a majority of the directors who are not “interested persons” (as defined in the 1940 Act) of the BDC and who have no financial interest in the arrangement. In addition, as a non-traded BDC, if we receive the relevant approval to increase our authorized leverage, we will be required to offer our stockholders the opportunity to sell their shares of Common Stock over the next year following the calendar quarter in which the approval was obtained. In determining whether to use leverage, we will analyze the maturity, covenants and interest rate structure of the proposed borrowings, as well as the risks of such borrowings within the context of our investment outlook and the impact of leverage on our investment portfolio. The amount of any leverage that we will employ as a BDC will be subject to oversight by our Board of Directors.

We generate revenue in the form of interest on the debt securities that we hold in our portfolio companies. The senior debt we invest in generally has stated terms of three to ten years. Our senior debt investments generally bear interest at a floating rate. Interest on debt securities is generally payable quarterly or semiannually. In some cases, some of our investments may provide for deferred interest payments or PIK interest. The principal amount of the debt securities and any accrued but unpaid interest generally will become due at the maturity date. In addition, we may generate revenue in the form of commitment and other fees in connection with transactions, although we do not expect to do so. OID as well as market discount and premium are accreted and amortized in determining our interest income. We record any prepayment premiums on loans and debt securities as income.

COVID-19 and Related Developments

Market disruptions caused by the COVID-19 pandemic have adversely affected the business operations of some, if not all, of our portfolio companies and may continue to affect their operations, as well as and the operations of our Adviser. We cannot predict the ultimate full impact of COVID-19 on our business operations, the extent of the global economic recovery and the uncertainty surrounding the efficiency and success of the global vaccination efforts as more contagious strains of the virus emerge in various countries, including the United States. Such contagious variants, in conjunction with business re-openings, more frequent social gatherings, and decreasing public concern regarding COVID-19 have resulted in surges in the rates of COVID-19 infections in the United States and worldwide. Even if the prevalence of COVID-19 diminishes, lingering impacts such as supply chain disruptions and inflation are negatively affecting our portfolio companies and may lead to a decline in economic growth. We expect COVID-19 and/or other health pandemics and consequent supply chain disruptions to affect negatively our operating results and financial condition and the operating results and financial condition of our portfolio companies. We will continue to monitor developments relating to the COVID-19 pandemic and guidance from U.S. and international authorities, including federal, state and local public health officials and may take additional actions based on their recommendations.

52


PORTFOLIO COMPOSITION AND INVESTMENT ACTIVITY

Portfolio Composition

The fair value of our investments, comprised of syndicated loans and equity, as of March 31, 2023, was approximately $398,843,940 and held in 216 portfolio companies as of March 31, 2023. The fair value of our investments, comprised of syndicated loans and equity, as of December 31, 2022, was approximately $420,828,658 and held in 222 portfolio companies as of December 31, 2022.

During the three months ended March 31, 2023, we invested in 7 new syndicated investments for a combined $6,486,826 and in existing investments for a combined $1,889,911. We also received $20,751,034 in repayments from investments and $9,262,833 from investments sold during the three months ended March 31, 2023. During the three months ended March 31, 2022, we invested in 22 new syndicated investments for a combined $30,097,098 and in existing investments for a combined $3,471,687. We also received $12,318,646 in repayments from investments and $4,047,932 from investments sold during the three months ended March 31, 2022.

In addition, for the three months ended March 31, 2023, we had a change in unrealized depreciation of approximately $556,727 and realized losses of $43,997. For the three months ended March 31, 2022, we had a change in unrealized depreciation of approximately $1,566,163 and realized gains of $225,786.

Our investment activity for the three months ended March 31, 2023 and 2022, is presented below:

    

Three Months Ended 

    

Three Months Ended 

 

March 31, 2023

March 31, 2022

 

Beginning investment portfolio, at fair value

$

420,828,658

$

403,054,374

Investments in new portfolio investments

 

6,486,826

 

30,097,098

Investments in existing portfolio investments

 

1,889,911

 

3,471,687

Principal repayments

 

(20,751,034)

 

(12,318,646)

Proceeds from investments sold

 

(9,262,833)

 

(4,047,932)

Change in premiums, discounts and amortization

 

253,136

 

206,238

Net change in unrealized depreciation on investments

 

(556,727)

 

(1,566,163)

Realized (loss) gain on investments

 

(43,997)

 

225,786

Ending portfolio investment activity, at fair value

$

398,843,940

$

419,122,442

Number of portfolio investments

 

244

 

242

Average investment amount, at cost

$

1,665,053

$

1,743,499

Percentage of investments at floating rates

 

99.18

%  

 

100.00

%

  Three Months Ended
March 31, 2023
  Three Months Ended
March 31, 2022
 
Beginning investment portfolio, at fair value $420,828,658  $403,054,374 
Investments in new portfolio investments  6,486,826   30,097,098 
Investments in existing portfolio investments  1,889,911   3,471,687 
Principal repayments  (20,751,034)  (12,318,646)
Proceeds from investments sold  (9,262,833)  (4,047,932)
Change in premiums, discounts and amortization  253,136   206,238 
Net change in unrealized depreciation on investments  (556,727)  (1,566,163)
Realized (loss) gain on investments  (43,997)  225,786 
Ending portfolio investment activity, at fair value $398,843,940  $419,122,442 
Number of portfolio investments  244   242 
Average investment amount, at cost $1,665,053  $1,743,499 
Percentage of  investments at floating rates  99.18%  100.00%

As of March 31, 2023 and December 31, 2022, our entire portfolio consisted of non-controlled/non-affiliated investments.

RECENT DEVELOPMENTS

Subsequent to March 31, 2023 through May 12, 2023, the Company invested $8,156,066 at cost in 22 different portfolio companies.


RESULTS OF OPERATIONS

The net increase or decrease in net assets from operations may vary substantially from period to period as a result of various factors, including the recognition of realized gains and/or losses and net change in unrealized appreciation and depreciation. This “Results of Operations” section should be read in conjunction with the “COVID-19 and Related Developments” section above.

53

Revenue

Total investment income for the three months ended March 31, 2023 and 2022 is presented in the table below.

    

Three Months Ended 

    

Three Months Ended  

March 31, 2023

March 31, 2022

Total interest income from non-controlled/non-affiliated investments

$

10,011,292

$

5,389,818

Total other interest income

 

64,550

 

384

Total other income

 

62,635

 

38,118

Total investment income

$

10,138,477

$

5,428,320

  Three Months Ended
March 31, 2023
  Three Months Ended
March 31, 2022
 
Total interest income from non-controlled/non-affiliated investments $10,011,292  $5,389,818 
Total other interest income  64,550   384 
Total other income  62,635   38,118 
Total investment income $10,138,477  $5,428,320 

Total investment income for the three months ended March 31, 2023 increased to $10,138,477 from $5,428,320 for the three months ended March 31, 2022, and was primarily driven by an increase in interest rate spreads over the period and our increasing investment balance. As of March 31, 2023 and 2022, the size of our debt portfolio was $402,971,119 and $420,316,183 at amortized cost, respectively, with total debt principal amount outstanding of $407,505,625 and $423,552,801, respectively.

Expenses

Total expenses net of waivers for the three months ended March 31, 2023 and 2022, were as follows:

  Three Months Ended
March 31, 2023
  Three Months Ended
March 31, 2022
 
Base management fee(a) $1,108,854  $1,038,439 
Incentive fee(a)  1,333,105   426,322 
Interest expense(b)  227,652   41,166 
Professional fees  98,636   81,675 
Other expenses  74,766   79,177 
Administrative fee(a)  66,250   66,250 
Directors' fees  63,750   56,250 
Total expenses  2,973,013   1,789,279 
Base management fee waivers(a)  (388,099)  (363,454)
Incentive fee waivers(a)  (889,296)  (383,690)
Total expenses, net of waivers $1,695,618  $1,042,135 

(a) Refer to Note 4-Related Party Transactions within the financial statements for a description of the relevant fees.
(b) Refer to Note 8-Borrowing within the financial statements for a description of the relevant expenses.

    

Three Months Ended 

    

Three Months Ended 

March 31, 2023

March 31, 2022

Base management fee(a)

$

1,108,854

$

1,038,439

Incentive fee(a)

 

1,333,105

 

426,322

Interest expense(b)

 

227,652

 

41,166

Professional fees

 

98,636

 

81,675

Other expenses

 

74,766

 

79,177

Administrative fee(a)

 

66,250

 

66,250

Directors' fees

 

63,750

 

56,250

Total expenses

 

2,973,013

 

1,789,279

Base management fee waivers(a)

 

(388,099)

 

(363,454)

Incentive fee waivers(a)

 

(889,296)

 

(383,690)

Total expenses, net of waivers

$

1,695,618

$

1,042,135


(a)Refer to Note 4-Related Party Transactions within the financial statements for a description of the relevant fees.

(b)Refer to Note 8-Borrowing within the financial statements for a description of the relevant expenses.

The increase in base management fees before waivers for the three months ended March 31, 2023 in comparison to the three months ended March 31, 2022 was driven by our increasing average gross assets balance. For the three months ended March 31, 2023 and 2022, we accrued gross base management fees before waivers of $1,108,854 and $1,038,439, respectively. Offsetting those fees, we recognized base management fee waivers of $388,099 and $363,454 for three months ended March 31, 2023 and 2022, respectively. For the three months ended March 31, 2023 and 2022, we accrued incentive fees related to net investment income before waivers of $1,333,105 and $426,322, respectively. Offsetting those fees, we recognized incentive fee waivers of $889,296 and $383,690, respectively. Additionally, we accrued $66,250 of administrative fees for each of the three months ended March 31, 2023 and 2022. Refer to Note 4 Related Party Transactions in the notes accompanying our financial statements for more information related to base management fees, incentive fees and waivers.

During the three months ended March 31, 2023 and 2022, we incurred professional fees of $98,636 and $81,675, respectively, related to audit fees, tax fees, and legal fees. During the three months ended March 31, 2023 and 2022, we incurred expenses related to fees paid to our independent directors of $63,750 and $56,250 for the three months ended March 31, 2023 and 2022, respectively.

During the three months ended March 31, 2023 and 2022, we incurred interest expense of $227,652 and $41,166, respectively, in connection with our short-term borrowings. Refer to Note 8 Borrowings in the notes accompanying our financial statements for more information related to interest expense.

54

Realized and Unrealized Gains and Losses

For the three months ended March 31, 2023, we recognized $43,997 in net realized losses. For the three months ended March 31, 2022, we recognized $225,786 in net realized gains.

Net change in unrealized (depreciation) appreciation on investments for the three months ended March 31, 2023 and 2022 was as follows:

    

Three Months Ended 

    

Three Months Ended 

Type

March 31, 2023

March 31, 2022

First Lien Debt

$

(589,260)

$

(1,535,347)

Unitranche Debt

 

72,983

 

17,102

Second Lien Debt

 

(215,724)

 

(50,930)

Equity and Preferred Shares

 

175,274

 

3,012

Net change in unrealized depreciation on investments

$

(556,727)

$

(1,566,163)

Type Three Months Ended
March 31, 2023
  Three Months Ended
March 31, 2022
 
First Lien Debt $(589,260) $(1,535,347)
Unitranche Debt  72,983   17,102 
Second Lien Debt  (215,724)  (50,930)
Equity and Preferred Shares  175,274   3,012 
Net change in unrealized depreciation on investments $(556,727) $(1,566,163)

Net change in unrealized depreciation on investments during the three months ended March 31, 2023 was primarily due to the change in the results and financial position of the portfolio companies. Net change in unrealized depreciation on investments during the three months ended March 31, 2022 was primarily due to the change in the results and financial position of the portfolio companies.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

We generate cash primarily from the net proceeds of any offering of shares of our Common Stock, from cash flows from interest and fees earned from our investments, and from principal repayments and proceeds from sales of our investments. Our primary use of cash is investments in portfolio companies, payments of our expenses and cash distributions to our stockholders. As of March 31, 2023 and December 31, 2022, we had cash of $32,284,422 and $15,923,163, respectively. This “Financial Condition, Liquidity and Capital Resources” section should be read in conjunction with the “COVID-19 and Related Developments” section above.


Operating Activities

Net cash provided by operating activities for the three months ended March 31, 2023 was $35,815,808. The primary operating activities during this period were investments in portfolio companies. The Company invested $6,486,826 in new portfolio investments and $1,889,911 in existing portfolio investments during the three months ended March 31, 2023. This was offset by repayments of bank loans and sales of investments of $20,751,034 and $9,262,833, respectively. Net cash used in operating activities for the three months ended March 31, 2022 was $29,477,387. The primary operating activities during this period were investments in portfolio companies. The Company invested $30,097,098 in new portfolio investments and $3,471,687 in existing portfolio investments during the three months ended March 31, 2022. This was offset by repayments of bank loans and sales of investments of $12,318,646 and $4,047,932, respectively.

As of March 31, 2023, we had 70 investments with unfunded commitments of $24,253,527. As of December 31, 2022, we had 66 investments with unfunded commitments of $24,258,010. We believe that, as of both March 31, 2023 and December 31, 2022, we had sufficient assets to adequately cover any obligations under our unfunded commitments.

55

The following table summarizes our total portfolio activity during the three months ended March 31, 2023 and 2022:

    

Three Months Ended 

    

Three Months Ended 

March 31, 2023

March 31, 2022

Beginning investment portfolio

$

420,828,658

$

403,054,374

Investments in new portfolio investments

 

6,486,826

 

30,097,098

Investments in existing portfolio investments

 

1,889,911

 

3,471,687

Principal repayments

 

(20,751,034)

 

(12,318,646)

Proceeds from sales of investments

 

(9,262,833)

 

(4,047,932)

Net change in unrealized depreciation on investments

 

(556,727)

 

(1,566,163)

Net realized (loss) gain on investments

 

(43,997)

 

225,786

Net change in premiums, discounts and amortization

 

253,136

 

206,238

Investment Portfolio, at Fair Value

$

398,843,940

$

419,122,442

  Three Months Ended March 31, 2023  Three Months Ended March 31, 2022 
Beginning investment portfolio $420,828,658  $403,054,374 
Investments in new portfolio investments  6,486,826   30,097,098 
Investments in existing portfolio investments  1,889,911   3,471,687 
Principal repayments  (20,751,034)  (12,318,646)
Proceeds from sales of investments  (9,262,833)  (4,047,932)
Net change in unrealized depreciation on investments  (556,727)  (1,566,163)
Net realized (loss) gain on investments  (43,997)  225,786 
Net change in premiums, discounts and amortization  253,136   206,238 
Investment Portfolio, at Fair Value $398,843,940  $419,122,442 

Financing Activities

Net cash used in our financing activities for the three months ended March 31, 2023 was $19,454,549, which consisted of $15,000,000 in repurchases of 1,623,377 shares to our stockholders in connection with the Tender Offer during the period and $4,454,549 in connection with repayments of our short-term borrowings during the period. Net cash provided by our financing activities for the three months ended March 31, 2022 was $30,000,000 from issuances of 3,205,128 shares of Common Stock to our stockholders in connection with our capital calls during the period.

Equity Activity

An investor made capital commitments to us in the amounts set forth below as of the date opposite each capital commitment:

Amount

    

Date

$

140,000,000

June 23, 2015

$

50,000,000

December 2, 2016

$

100,000,000

On December 7, 2017

$

40,000,000

March 22, 2019

$

30,000,000

September 23, 2019

$

11,200,000

March 20, 2020

$

8,900,000

May 28, 2021

$

110,000,000

December 15, 2021

Amount Date
$140,000,000 June 23, 2015
$50,000,000 December 2, 2016
$100,000,000 On December 7, 2017
$40,000,000 March 22, 2019
$30,000,000 September 23, 2019
$11,200,000 March 20, 2020
$8,900,000 May 28, 2021
$110,000,000 December 15, 2021

As of March 31, 2023, there were no remaining unfunded capital commitments by the Company’s investors.


The number of shares of our Common Stock issued and outstanding as of March 31, 2023 and December 31, 2022, were 44,753,084 and 46,376,461, respectively.

Distributions to Stockholders – Common Stock Distributions

We have elected to be treated, and intends to comply with the requirements to qualify annually, as a RIC for U.S. federal income tax purposes. As a RIC, we generally are not subject to corporate-level U.S. federal income taxes on ordinary income or capital gains that we timely distribute as dividends for U.S. federal income tax purposes to our stockholders. To qualify to be taxed as a RIC and thus avoid corporate-level income tax on the income that we distribute as dividends to our stockholders, we are required to distribute dividends to our stockholders each taxable year generally of an amount at least equal to 90% of our investment company taxable income, determined without regard to the deduction for any dividends paid. To avoid a 4% excise tax on undistributed earnings, we are required to distribute dividends to our stockholders in respect of each calendar year of an amount at least equal to the sum of (i) 98% of our ordinary income (taking into account certain deferrals and elections) for such calendar year, (ii) 98.2% of our capital gain net income, adjusted for certain ordinary losses, for the one-year period ending October 31 of that calendar year and (iii) any income or capital gains recognized, but not distributed, in preceding calendar years and on which we incurred no federal income tax. We intend to make distributions to stockholders on an annual basis of substantially all of our net investment income.

56

Although we intend to make distributions of net realized capital gains, if any, at least annually, out of assets legally available for such distributions, we may in the future decide to retain such capital gains for investment. In addition, the extent and timing of special dividends, if any, will be determined by our Board of Directors and will largely be driven by portfolio specific events and tax considerations.

We may fund our cash distributions from any sources of funds available, including offering proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to us on account of preferred and common equity investments in portfolio companies and fee waivers from our Adviser. Our distributions may exceed our earnings, especially during the period before we have substantially invested the proceeds from an offering. As a result, a portion of the distributions may represent a return of capital for U.S. federal income tax purposes. Thus, the source of a distribution to our stockholders may be the original capital invested by the stockholder rather than our income or gains. In addition, we may be limited in our ability to make distributions due to the asset coverage test for borrowings applicable to us as a BDC under the 1940 Act. We did not declare or pay distributions for the three months ended March 31, 2023 and 2022.

The determination of the tax attributes of our distributions is made annually at the end of our taxable year, based upon our taxable income for the full taxable year and distributions paid for the full taxable year. Therefore, estimates made on an interim basis may not be representative of the actual tax attributes of distributions for a full year. The actual tax characteristics of distributions to stockholders will be reported to stockholders subject to information reporting after the close of each calendar year on Form 1099-DIV.

Related Party Fees

For the three months ended March 31, 2023 and 2022, we recorded base management fees of $1,108,854 and $1,038,439, respectively. Offsetting these fees were waivers to the base management fees of $388,099 and $363,454, respectively, as set forth within the accompanying statements of operations.

For the three months ended March 31, 2023 and 2022, we recorded incentive fees of $1,333,105 and $426,322, respectively. Offsetting these waivers to the incentive fees of $889,296 and $383,690, respectively, as set forth within the accompanying statements of operations.

For both of the three months ended March 31, 2023 and 2022, we recorded administrative fees of $66,250, respectively, as set forth within the accompanying statements of operations.


Fees due to related parties as of March 31, 2023 and December 31, 2022 on our accompanying statements of assets and liabilities were as follows:

    

March 31, 2023

    

December 31, 2022

Net base management fee due to Adviser

$

720,755

$

732,900

Net incentive fee due to Adviser

 

443,809

 

404,409

Total fees due to Adviser, net of waivers

 

1,164,564

 

1,137,309

Fee due to Administrator, net of waivers

 

66,250

 

66,250

Total Related Party Fees Due

$

1,230,814

$

1,203,559

  March 31, 2023  December 31, 2022 
Net base management fee due to Adviser $720,755  $732,900 
Net incentive fee due to Adviser  443,809   404,409 
Total fees due to Adviser, net of waivers  1,164,564   1,137,309 
Fee due to Administrator, net of waivers  66,250   66,250 
Total Related Party Fees Due $1,230,814  $1,203,559 

Tender Offers

To provide our stockholders with limited liquidity, we may, in the absolute discretion of our Board of Directors, conduct a tender offer. Our tenders for the shares of Common Stock, if any, would be conducted on such terms as may be determined by our Board of Directors and in accordance with the requirements of applicable law, including Section 23(c) of the 1940 Act and Regulation M under the Exchange Act.

On January 9, 2023, the Company issued a Tender Offer to repurchase $15.0 million worth of Common Stock from the Stockholder. The Offer was accepted on February 7, 2023. On March 27, 2023, the Company issued a Tender Offer to repurchase $15.0 million worth of Common Stock from the Stockholder. The Offer was accepted on April 24, 2023.

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CRITICAL ACCOUNTING POLICIES

This discussion of our operations is based upon our financial statements, which are prepared in accordance with GAAP. The preparation of these financial statements requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.

Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ. In addition to the discussion below, we describe our critical accounting policies in the notes to our financial statements.

Valuation of Investments

We conduct the valuation of our investments, pursuant to which our net asset value is determined, at all times consistent with GAAP and the 1940 Act. Our Board of Directors, with the assistance of our Audit Committee, determines the fair value of our investments, for investments with a public market and for investments with no readily available public market, on at least a quarterly basis, in accordance with the terms of ASC 820. Our valuation procedures are set forth in more detail below.

ASC 820 defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions and market information might not be available. However, the objective of a fair value measurement in both cases is the same – to estimate the price when an orderly transaction to sell the asset or transfer the liability would take place between market participants at the measurement date under current market conditions (that is, an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability).

ASC 820 establishes a hierarchal disclosure framework which ranks the observability of inputs used in measuring financial instruments at fair value. The observability of inputs is impacted by a number of factors, including the type of financial instruments and their specific characteristics. Financial instruments with readily available quoted prices, or for which fair value can be measured from quoted prices in active markets, generally will have a higher degree of market price observability and a lesser degree of judgment applied in determining fair value.


The three-level hierarchy for fair value measurement is defined as follows:

Level 1  Inputs to the valuation methodology are quoted prices available in active markets for identical financial instruments as of the measurement date. The types of financial instruments in this category include unrestricted securities, including equities and derivatives, listed in active markets. We do not adjust the quoted price for these instruments, even in situations where we hold a large position, and a sale could reasonably be expected to impact the quoted price.

Level 2  Inputs to the valuation methodology are quoted prices in markets that are not active or for which all significant inputs are either directly or indirectly observable as of the measurement date. The types of financial instruments in this category include less liquid and restricted securities listed in active markets, securities traded in markets that are not active, government and agency securities, and certain over-the-counter derivatives where the fair value is based on observable inputs.

Level 3  Inputs to the valuation methodology are unobservable and significant to the overall fair value measurement, and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments in this category include investments in privately held entities, non-investment grade residual interests in securitizations, collateralized loan obligations, and certain over-the-counter derivatives where the fair value is based on unobservable inputs.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. Assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

58

Pursuant to the framework set forth above, we value securities traded in active markets on the measurement date by multiplying the exchange closing price of such traded securities/instruments by the quantity of shares or amount of the instrument held. We may also obtain quotes with respect to certain of our investments from pricing services, brokers or dealers’ quotes, or counterparty marks in order to value liquid assets that are not traded in active markets.

Pricing services aggregate, evaluate and report pricing from a variety of sources including observed trades of identical or similar securities, broker or dealer quotes, model-based valuations and internal fundamental analysis and research. When doing so, we determine whether the quote obtained is sufficient according to GAAP to determine the fair value of the security. If determined adequate, we use the quote obtained.

Securities that are illiquid or for which the pricing source does not provide a valuation or methodology or provides a valuation or methodology that, in the judgment of our Board of Directors, does not represent fair value, are each valued as of the measurement date using all techniques appropriate under the circumstances and for which sufficient data are available. These valuation techniques vary by investment but include comparable public market valuations, comparable precedent transaction valuations and discounted cash flow analyses. Inputs for these valuation techniques include relative credit information, observed market movement, industry sector information, and other market data, which may include benchmarking of comparable securities, issuer spreads, reported trades, and reference data, such as market research publications, when available. The process used to determine the applicable value is as follows:

(i)Each portfolio company or investment is initially valued by the investment professionals of the Adviser responsible for the portfolio investment using a standardized template designed to approximate fair market value based on observable market inputs and updated credit statistics and unobservable inputs. Additionally, as a part of our valuation process, the Adviser may employ the services of one or more independent valuation firms engaged by us;


(ii)Preliminary valuation conclusions are documented and discussed with our senior management and members of the Adviser’s valuation team;

(iii)Our Audit Committee reviews the assessments of the Adviser or independent valuation firm (to the extent applicable) and provides our Board of Directors with recommendations with respect to the fair value of the investments in our portfolio; and

(iv)Our Board of Directors discusses the valuation recommendations of our Audit Committee and determines the fair value of the investments in our portfolio in good faith based on the input of the Adviser, the independent valuation firm (to the extent applicable) and in accordance with our valuation policy.

Our Audit Committee’s recommendation of fair value is generally based on its assessment of the following factors, as relevant:

·the nature and realizable value of any collateral;

·call features, put features and other relevant terms of debt;

·the portfolio company’s ability to make payments;

·the portfolio company’s actual and expected earnings and discounted cash flow;

·prevailing interest rates for like securities and expected volatility in future interest rates;

·the markets in which the portfolio company does business and recent economic and/or market events; and

·comparisons to publicly traded securities.

Investment performance data utilized are the most recently available as of the measurement date, which in many cases may reflect up to a one quarter lag in information.

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Securities for which market quotations are not readily available or for which a pricing source is not sufficient may include the following:

·private placements and restricted securities that do not have an active trading market;

·securities whose trading has been suspended or for which market quotes are no longer available;

·debt securities that have recently gone into default and for which there is no current market;

·securities whose prices are stale; and

·securities affected by significant events.

Our Board of Directors is responsible for the determination, in good faith, of the fair value of our portfolio investments.

Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our financial statements express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our financial statements.


Security transactions are recorded on the trade date (the date the order to buy or sell is executed or, in the case of privately issued securities, the closing date, which is when all terms of the transactions have been defined). Realized gains and losses on investments are determined based on the identified cost method.

In addition, on December 3, 2020, the SEC announced that it adopted Rule 2a-5 under the 1940 Act, which establishes an updated regulatory framework for determining fair value in good faith for purposes of the 1940 Act. The new rule clarifies how fund boards can satisfy their valuation obligations in light of recent market developments. The rule will permit boards, subject to board oversight and certain other conditions, to designate certain parties to perform the fair value determinations.

Refer to Note 3 — Investments in the notes to our accompanying financial statements included elsewhere in this quarterly report for additional information regarding fair value measurements and our application of ASC 820.

Revenue Recognition

We record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt securities with contractual PIK interest, which represents contractual interest accrued and added to the principal balance, we generally will not accrue PIK interest for accounting purposes if the portfolio company valuation indicates that such PIK interest is not collectible. We do not accrue as a receivable interest on loans and debt securities for accounting purposes if we have reason to doubt our ability to collect such interest. OID, market discounts or premiums are accreted or amortized using the effective interest methodmethod as interest income. We record prepayment premiums on loans and debt securities as interest income.

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

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

PIK Interest

We may have investments in our portfolio that contain a PIK interest provision. Any PIK interest will be added to the principal balance of such investments and is recorded as income if the portfolio company valuation indicates that such PIK interest is collectible. In order to maintain our status as a RIC, substantially all of this income must be included in the amounts paid out by us to stockholders in the form of dividends, even if we have not collected any cash.

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U.S. Income Taxes

We have elected to be subject to tax as a RIC under Subchapter M of the Code. As a RIC, we generally will not have to incur any corporate-level U.S. federal income taxes on any ordinary income or capital gains that we distribute as dividends to our stockholders. To qualify and maintain our qualification as a RIC, we must meet certain source-of-income and asset diversification requirements as well as distribute dividends to our stockholders each taxable year of an amount generally at least equal to 90% of our investment company taxable income, determined without regard to any distributions paid.

Depending on the level of taxable income earned in a taxable year, we may choose to retain taxable income in excess of current year distributions into the next taxable year. We would then incur a 4% excise tax on such taxable income, as required. To the extent that we determine that our estimated current year annual taxable income may exceed estimated current year distributions, we will accrue an excise tax, if any, on estimated excess taxable income as taxable income is earned. We did not accrue any excise tax for the fiscal years ended December 31, 2022, 2021, and 2020.


Because U.S. 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 within capital accounts in the financial statements to reflect their tax character. Permanent differences may also result from differences in classification in certain items, such as the treatment of short-term gains as ordinary income for tax purposes. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

We evaluate tax positions taken or expected to be taken in the course of preparing our financial statements to determine whether any relevant tax positions would “more-likely-than-not” be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reversed and recorded as a tax benefit or expensed in the current fiscal year. All penalties and interest associated with any income taxes accrued are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, ongoing analyses of tax law, regulations and interpretations thereof. Our accounting policy on income taxes is critical because if we are unable to qualify, or once qualified, maintain our tax status as a RIC, we would be required to record a provision for corporate-level U.S. federal income taxes, as well as any related state or local taxes which may be significant to our financial results.

COMMITMENTS AND CONTINGENCIES

From time to time, we, or the Adviser, may become party to legal proceedings in the ordinary course of business, including proceedings related to the enforcement of our rights under contracts with our portfolio companies. Neither we nor the Adviser is currently subject to any material legal proceedings.

Unfunded commitments to provide funds to portfolio companies are not reflected in our accompanying statements of assets and liabilities. Our unfunded commitments may be significant from time to time. These commitments are subject to the same underwriting and ongoing portfolio maintenance as are the on-balance sheet financial instruments that we hold. Since these commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements. We use cash flow from normal and early principal repayments and proceeds from borrowings and offerings to fund these commitments. As of March 31, 2023, we had 70 investments with unfunded commitments of $24,253,527. As of December 31, 2022, we had 66 investments with unfunded commitments of $24,258,010. We believe that, as of March 31, 2023 and December 31, 2022, we had sufficient assets to adequately cover any obligations under our unfunded commitments.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are subject to financial market risks, including changes in interest rates. During the period covered by our financial statements, many of the loans in our portfolio had floating interest rates, and we expect that many of our loans to portfolio companies in the future will also have floating interest rates based on LIBOR or an equivalent risk-free index rate. Interest rate fluctuations may have a substantial negative impact on our investments, the value of our Common Stock and our rate of return on invested capital. In addition, U.S. and global capital markets and credit markets have experienced a higher level of stress due to the global COVID-19 pandemic, which has resulted in an increase in the level of volatility across such markets and a general decline in value of the securities held by us. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

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In addition, inflation resulting from supply chain disruptions caused by the war between Russia and Ukraine and the COVID-19 pandemic has resulted in a general increase of certain interest rates by the U.S. Federal Reserve and other central banks. A continued increase in interest rates, including SOFR, could affect our gross investment income.


Increase (decrease) in 

Change in interest rates

Increase (decrease) in
investment income

Up 300 basis points

9,853,882

Up 200 basis points

5,778,826

Up 100 basis points

1,703,769

Down 100 basis points

(66,806)

(66,806)

Down 200 basis points

(66,806)

(66,806)

Down 300 basis points

(66,806)

(66,806)

Although we believe that this measure is indicative of our sensitivity to interest rate changes, it does not reflect potential changes in the credit market, credit quality, size and composition of the assets on the Consolidated Statements of Assets and Liabilities and other business developments that could affect our net increase in net assets resulting from operations or net investment income. Accordingly, no assurances can be given that actual results would not differ materially from those shown above.

In addition, any investments we make that are denominated in a foreign currency will be subject to risks associated with changes in currency exchange rates. These risks include the possibility of significant fluctuations in the foreign currency markets, the imposition or modification of foreign exchange controls and potential illiquidity in the secondary market. These risks will vary depending upon the currency or currencies involved.

We may hedge against interest rate and currency exchange rate fluctuations by using standard hedging instruments such as futures, options and forward contracts subject to the requirements of the 1940 Act. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of investments with fixed interest rates.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of the period covered by this report, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness and design and operation of our disclosure controls and procedures. Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective at a reasonable assurance level in timely alerting management, including the Chief Executive Officer and Chief Financial Officer, of material information about us required to be included in periodic SEC filings. However, in evaluation of the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


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PART II–OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are not currently subject to any material legal proceeding, nor, to our knowledge, is any material legal proceeding threatened against us.

From time to time, we, our Adviser or Administrator may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our financial condition or results of operations.

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.

ITEM 1A. RISK FACTORS

In addition to the risks discussed below, important risk factors that could cause results or events to differ from current expectations are described in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 20, 2023.

Legislation passed in 2018 allows us to incur additional leverage and would require us to offer liquidity to our stockholders.

Under the 1940 Act, a BDC generally is required to maintain asset coverage of 200% for senior securities representing indebtedness (such as borrowings from banks or other financial institutions) or stock (such as preferred stock). The SBCAA, which was signed into law on March 23, 2018, provides that a BDC’s required asset coverage under the 1940 Act may be reduced from 200% (i.e., $1 of debt outstanding for each $1 of equity) to 150% (i.e., $2 of debt outstanding for each $1 of equity). This reduction in asset coverage permits a BDC to double the amount of leverage it may utilize, subject to certain approval, timing and reporting requirements, including either stockholder approval or approval of a majority of the directors who are not “interested persons” (as defined in the 1940 Act) of the BDC and who have no financial interest in the arrangement. As a result, if we receive the relevant approval and we comply with the applicable disclosure requirements, we would be able to incur additional leverage, which may increase the risk of investing in us. In addition, since our base management fee is payable based upon our average adjusted gross assets, which includes any borrowings for investment purposes, our base management fee expenses may increase if we incur additional leverage.

As a non-traded BDC, if we receive the relevant approval to increase our authorized leverage, we will be required to offer our stockholders the opportunity to sell their Shares over the next year following the calendar quarter in which the approval was obtained. On January 9, 2023, the Company issued a Tender Offer to repurchase $15.0 million worth of Common Stock from the Stockholder. The Offer was accepted on February 7, 2023. On March 27, 2023, the Company issued a Tender Offer to repurchase $15.0 million worth of Common Stock from the Stockholder. The Offer was accepted on April 24, 2023.

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Political, social and economic uncertainty, including uncertainty related to Russia’s military invasion of Ukraine, create and exacerbate risks.

Russia’s invasion of Ukraine in February 2022 and corresponding events have had, and could continue to have, severe adverse effects on regional and global economic markets. Following Russia’s actions, various governments, including the United States, have issued broad-ranging economic sanctions against Russia, including, among other actions, a prohibition on doing business with certain Russian companies, large financial institutions, officials and oligarchs; a commitment by certain countries and the European Union to remove selected Russian banks from the Society for Worldwide Interbank Financial Telecommunications, the electronic banking network that connects banks globally; and restrictive measures to prevent the Russian Central Bank from undermining the impact of the sanctions. The duration of hostilities and the vast array of sanctions and related events (including cyberattacks and espionage) cannot be predicted. Those events present material uncertainty and risk with respect to markets globally, which pose potential adverse risks to us and the performance of our investments and operations. Any such market disruptions could affect our portfolio companies’ operations and, as a result, could have a material adverse effect on our business, financial condition and results of operations.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

ITEM 6. EXHIBITS

3.1

3.1

Amended and Restated Certificate of Incorporation (Incorporated by reference to Exhibit 3.1 to the Registration Statement on Form 10 (File no. 000-55426), filed on April 17, 2015).

3.2

3.2

Form of Bylaws (Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form 10 (File no. 000-55426), filed on April 17, 2015).

31.1*

31.1

Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.

31.2*

31.2

Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.

32.1*

32.1

Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended (18 U.S.C. 1350).

32.2*

32.2

Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended (18 U.S.C. 1350).

99.1

99.1

Code of Ethics (Incorporated by reference to Exhibit 99.1 to Pre-Effective Amendment No. 1 to the Registration Statement on Form 10, File No. 000-55426, filed on June 5, 2015).

101.INS*

Inline XBRL Instance Document

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101.SCH*

Inline XBRL Taxonomy Extension Schema Document

101.CAL*

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*

Inline XBRL Taxonomy Extension Labels Linkbase Document

101.PRE*

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104*

Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

*

Filed herewith

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*            Filed herewith


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SIGNATURES

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

 

Audax Credit BDC Inc.

Date: MayJune 12, 2023

By:

/s/ Michael P. McGonigle

Michael P. McGonigle

Chief Executive Officer

Date: MayJune 12, 2023

By:

/s/ Richard T. Joseph

Richard T. Joseph

Chief Financial Officer


66