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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q
 (Mark One)  
 ☒
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the quarterly period ended September 30, 2021
March 31, 2022
OR
 ☐
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
Commission File Number: 814-01259
AG Twin Brook BDC, Inc.
(Exact name of registrant as specified in its charter)
  
Delaware
83-4184014
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
  
245 Park Avenue, 26th26th Floor, New York, NY
10167
(Address of principal executive offices)(Zip Code)
  
(Registrant’s telephone number, including area code):(212) 692-2000

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



Title of each class

Trading Symbol(s)

Name of each exchange on which registered
None



None

None




Securities registered pursuant to Section 12(g) of the Act:
Common Stock, par value $0.001 per share
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES☒ NO ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES☒ NO ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer ☐
Accelerated filer ☐
 
 Non-accelerated filer ☒
Smaller reporting company ☐
 
  Emerging growth company ☒ 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒
  As of November 12, 2021,May 13, 2022, the registrant had 7,005,6159,141,176 shares of common stock, $0.001 par value per share, outstanding.




TABLE OF CONTENTS

PART I
CONSOLIDATED FINANCIAL INFORMATION
2

Item 1.
Consolidated Financial Statements
2



Consolidated Statements of Assets and Liabilities as of September 30, 2021March 31, 2022 (Unaudited) and December 31, 2020
2021
2



3



4



5



Consolidated Schedules of Investments as of September 30, 2021March 31, 2022 (Unaudited) and December 31, 20202021
6



Notes to Consolidated Financial Statements (Unaudited)
14
18
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
36
39
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
53
56
Item 4.
Controls and Procedures
54
57

PART II
OTHER INFORMATION
55
58
Item 1.
Legal Proceedings
55
58
Item 1A.
Risk Factors
55
58
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
55
58
Item 3.
Defaults Upon Senior Securities
55
58
Item 4.
Mine Safety Disclosures
55
58
Item 5.
Other Information
55
58
Item 6.
Exhibits
56
59
Signatures


57
60


PART I – CONSOLIDATED FINANCIAL INFORMATION

AG Twin Brook BDC, Inc.
Consolidated Statements of Assets and Liabilities
 (Amounts in thousands, except share and per share amounts)
  
September 30, 2021
(Unaudited)
  December 31, 2020 
Assets      
       
Investments at fair value:      
Non-controlled/non-affiliated investments at fair value (amortized cost of $105,708 and $76,422, respectively) $105,660  $75,812 
Non-controlled/affiliated investments at fair value (amortized cost of $4,444 and $3,201, respectively)  5,736   3,721 
Unrealized gain on foreign currency forward contracts  23   - 
Cash  14,566   10,320 
Prepaid expenses  237   162 
Interest receivable  233   181 
Deferred financing costs  107   236 
Total assets $126,562  $90,432 
Liabilities        
Unrealized loss on foreign currency forward contracts $15  $- 
Accrued expenses and other liabilities payable to affiliate  680   459 
Income incentive fees payable  214   99 
Management fees payable  155   105 
Deferred income  78   91 
Interest payable  8   21 
Dividend payable  -   1,156 
Total liabilities  1,150   1,931 
Commitments and contingencies (Note 8)        
Net assets        
Common shares $0.001 par value, 100,000,000 shares authorized; 6,199,809 and 4,482,000 shares issued and outstanding, respectively $6  $4 
Additional paid-in-capital  123,459   88,919 
Total distributable earnings (loss)  1,947   (422)
Total net assets  125,412   88,501 
Total liabilities and net assets $126,562  $90,432 
Net asset value per share $20.23  $19.75 


  March 31, 2022  
 
  (Unaudited)   December 31, 2021 
Assets      
       
Investments at fair value:      
Non-controlled/non-affiliated investments at fair value (amortized cost of $153,489 and $151,070, respectively) $153,728  $151,121 
Non-controlled/affiliated investments at fair value (amortized cost of $6,440 and $6,210, respectively)  8,465   7,986 
Unrealized gain on foreign currency forward contracts  21   39 
Cash  25,341   27,711 
Interest receivable  280   261 
Prepaid expenses  40   142 
Deferred financing costs  0   47 
Total assets $187,875  $187,307 
Liabilities        
Unrealized loss on foreign currency forward contracts $3  $3 
Accrued expenses and other liabilities payable to affiliate  639   677 
Income incentive fees payable  381   345 
Management fees payable  241   196 
Deferred income  158   167 
Interest payable  8   7 
Dividend payable  0   1,814 
Total liabilities  1,430   3,209 
Commitments and contingencies (Note 8)  0   0 
Net assets        
Common shares $0.001 par value, 100,000,000 shares authorized; 9,141,176 and 9,141,176 shares issued and outstanding, respectively $9  $9 
Additional paid-in-capital  182,844   182,850 
Total distributable earnings (loss)  3,592   1,239 
Total net assets  186,445   184,098 
Total liabilities and net assets $187,875  $187,307 
Net asset value per share $20.40  $20.14 


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

2
AG Twin Brook BDC, Inc.
Consolidated Statements of Operations
(Amounts in thousands, except share and per share amounts)
(Unaudited)

  Three Months  Three Months  Nine Months  Nine Months 
  Ended  Ended  Ended  Ended 
  September 30,  September 30,  September 30,  September 30, 
  2021  2020  2021  2020 
Investment income            
Investment income from non-controlled, non-affiliated investments:            
Interest $2,013  $1,201  $5,424  $3,399 
Other  94   67   301   198 
Total investment income from non-controlled, non-affiliated investments:  2,107   1,268   5,725   3,597 
Total investment income  2,107   1,268   5,725   3,597 
Expenses                
Income incentive fees $214  $38  $568  $114 
Management fees  155   94   416   259 
Accounting fees  107   98   317   323 
Insurance fees  90   125   312   368 
Professional fees  143   103   309   274 
Administrative fees(1)  97   85   267   358 
Interest  66   67   190   283 
Directors' fees  45   45   135   135 
Other  25   35   110   126 
Offering costs  -   73   -   409 
Total gross expenses  942   763   2,624   2,649 
Less waivers:                
Administrative fees waived(1)  -   (85)  -   (358)
Total net expenses  942   678   2,624   2,291 
Net investment income (loss)  1,165   590   3,101   1,306 
Net realized and unrealized gain (loss) on investment transactions                
Net realized gain (loss) on investment transactions:                
Non-controlled, non-affiliated investments $35  $1  $122  $5 
Foreign currency transactions  (5)  -   2   - 
Foreign currency forward transactions  12   -   (47)  - 
Net change in unrealized gain (loss) on investment transactions:                
Non-controlled, non-affiliated investments  87   490   562   (963)
Non-controlled, affiliated investments  220   270   772   (20)
Foreign currency forward contracts  4   -   8   - 
Total net realized and unrealized gain (loss) on investment transactions  353   761   1,419   (978)
Net increase (decrease) in net assets resulting from operations $1,518  $1,351  $4,520  $328 
Net investment income (loss) per share - basic and diluted $0.20  $0.17  $0.61  $0.45 
Earnings (loss) per share - basic and diluted $0.26  $0.40  $0.89  $0.11 
Weighted average shares outstanding - basic and diluted  5,754,844   3,402,000   5,092,922   2,907,131 


  Three Months Ended  Three Months Ended 
  March 31,  March 31, 
  2022
  2021
 
Investment income      
Investment income from non-controlled, non-affiliated investments:      
 Interest $2,923  $1,622 
 Other  149   54 
  Total investment income from non-controlled, non-affiliated investments:  3,072   1,676 
Total investment income  3,072   1,676 
Expenses        
Income incentive fees $381  $147 
Management fees  241   123 
Professional fees  119   44 
Accounting fees  104   104 
Insurance fees  90   122 
 Other  86   38 
 Interest  55   60 
Administrative fees(1)
  54   88 
Directors' fees  45   45 
Total net expenses  1,175   771 
Net investment income (loss)  1,897   905 
Net realized and unrealized gain (loss) on investment transactions        
Net realized gain (loss) on investment transactions:        
Non-controlled, non-affiliated investments $35  $18 
Foreign currency forward transactions  (2)  (8)
Net change in unrealized gain (loss) on investment transactions:        
Non-controlled, non-affiliated investments  188   160 
Non-controlled, affiliated investments  249   212 
Foreign currency forward contracts  (18)  16 
Foreign currency translation  (2)  0 
Total net realized and unrealized gain (loss) on investment transactions  450   398 
Net increase (decrease) in net assets resulting from operations $2,347  $1,303 
Net investment income (loss) per share - basic and diluted $0.21  $0.20 
Earnings (loss) per share - basic and diluted $0.26  $0.29 
Weighted average shares outstanding - basic and diluted  9,141,176   4,488,000 

(1) Refer to Note 6 - Agreements and Related Party Transactons





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


3

AG Twin Brook BDC, Inc.
Consolidated Statements of Changes in Net Assets
(Amounts in thousands, except share and per share amounts)
(Unaudited)


   Three Months  Three Months  Nine Months  Nine Months 
   Ended  Ended  Ended  Ended 
   September 30,  September 30,  September 30,  September 30, 
  2021  2020  2021  2020 
Increase (decrease) in net assets resulting from operations            
Net investment income (loss) $1,165  $590  $3,101  $1,306 
Net realized gain (loss)  42   -   77   - 
Net change in unrealized gain (loss)  311   761   1,342   (978)
Net increase (decrease) in net assets resulting from operations  1,518   1,351   4,520   328 
Dividends                
Dividends declared from earnings  (1,165)  (680)  (2,169)  (680)
Net decrease in net assets resulting from dividends  (1,165)  (680)  (2,169)  (680)
Capital share transactions                
Issuance of common shares  23,760   -   34,560   24,840 
Net increase in net assets resulting from capital share transactions  23,760   -   34,560   24,840 
Total increase in net assets  24,113   671   36,911   24,488 
Net assets, at beginning of period  101,299   66,518   88,501   42,701 
Net assets, at end of period $125,412  $67,189  $125,412  $67,189 
                 
Capital share activity                
Shares issued  1,177,809   -   1,717,809   1,242,000 
Net increase in shares outstanding  1,177,809   -   1,717,809   1,242,000 
Dividends declared per share $0.20  $0.20  $0.40  $0.20 


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



   Three Months Ended  Three Months Ended 
   March 31,  March 31, 
  2022
  2021
 
Increase (decrease) in net assets resulting from operations      
Net investment income (loss) $1,897  $905 
Net realized gain (loss)  33   10 
Net change in unrealized gain (loss)  417   388 
Net increase in net assets resulting from operations  2,347   1,303 
Capital share transactions        
Issuance of common shares  0   10,800 
Net increase in net assets resulting from capital share transactions  0   10,800 
Total increase in net assets  2,347   12,103 
Net assets, at beginning of period  184,098   88,501 
Net assets, at end of period $186,445  $100,604 
Capital share activity        
Shares issued  0   540,000 
Net increase in shares outstanding  0   540,000 
4
AG Twin Brook BDC, Inc.
Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)

  Nine Months  Nine Months 
  Ended  Ended 
  September 30,  September 30, 
  2021  2020 
Cash flows from operating activities      
Net increase (decrease) in net assets resulting from operations $4,520  $328 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:        
Net realized (gain) loss on investments  (122)  (5)
Net change in unrealized (appreciation) depreciation on investments  (1,334)  983 
Net change in unrealized (appreciation) depreciation on foreign currency forward contracts  (8)  - 
Net accretion on debt instruments  (309)  (180)
Net paydown gain on debt instruments  (146)  (20)
Interest received in-kind  (22)  - 
Purchases and drawdowns of investments  (55,199)  (34,815)
Proceeds from sales and paydowns of investments  25,269   9,632 
Amortization of deferred financing costs  167   94 
Amortization of offering costs  -   409 
Change in operating assets and liabilities:        
(Increase) decrease in interest receivable  (52)  (72)
(Increase) decrease in prepaid expenses  (75)  (128)
(Increase) decrease in other assets  -   (15)
(Increase) decrease in due from affiliate  -   23 
Increase (decrease) in accrued expenses and other liabilities payable to affiliate  221   78 
Increase (decrease) in management fees payable  50   49 
Increase (decrease) in income incentive fees payable  115   38 
Increase (decrease) in deferred income  (13)  9 
Increase (decrease) in interest payable  (13)  (6)
Increase (decrease) in due to affiliate  -   (44)
Increase (decrease) in organizational costs payable to affiliate  -   (26)
Net cash used in operating activities  (26,951)  (23,668)
Cash flows from financing activities        
Proceeds from issuance of common shares  34,560   24,840 
Dividends paid  (3,325)  (680)
Borrowings on subscription facility  3,100   19,800 
Payments on subscription facility  (3,100)  (25,300)
Payments for deferred financing costs  (38)  (120)
Payments for deferred offering costs  -   (20)
Net cash provided by financing activities  31,197   18,520 
Net change in cash  4,246   (5,148)
Cash        
Cash, beginning of period  10,320   9,008 
Cash, end of period $14,566  $3,860 
         
Supplemental and non-cash information        
Cash paid during the period for interest $36  $195 



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

5
4
AG Twin Brook BDC, Inc.
Consolidated ScheduleStatements of InvestmentsCash Flows
As of September 30, 2021
(Amounts in thousands)
(Unaudited)

  Three Months  Three Months 
  Ended  Ended 
  March 31,  March 31, 
  2022
  2021
 
Cash flows from operating activities      
Net increase (decrease) in net assets resulting from operations $2,347  $1,303 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:        
Net realized (gain) loss on investments  (35)  (18)
Net change in unrealized (appreciation) depreciation on investments  (437)  (372)
Net change in unrealized (appreciation) depreciation on foreign currency forward contracts  18   (16)
Net accretion on debt instruments  (184)  (99)
Net paydown gain on debt instruments  (31)  (76)
Interest received in-kind  (14)  (1)
Purchases and drawdowns of investments  (13,281)  (14,062)
Proceeds from sales and paydowns of investments  10,896   9,574 
Amortization of deferred financing costs  47   53 
Change in operating assets and liabilities:        
(Increase) decrease in interest receivable  (19)  9 
(Increase) decrease in prepaid expenses  102   122 
Increase (decrease) in accrued expenses and other liabilities payable to affiliate  (38)  160 
Increase (decrease) in management fees payable  45   18 
Increase (decrease) in income incentive fees payable  36   48 
Increase (decrease) in deferred income  (9)  3 
Increase (decrease) in interest payable  1   (13)
Net cash used in operating activities  (556)  (3,367)
Cash flows from financing activities        
Proceeds from issuance of common shares  0   10,800 
Dividends paid  (1,814)  (1,156)
Borrowings on subscription facility  0   2,400 
Payments on subscription facility  0   (2,400)
Payments for deferred financing costs  0   (23)
Net cash provided by (used in) financing activities  (1,814)  9,621 
Net change in cash  (2,370)  6,254 
Cash        
Cash, beginning of period  27,711   10,320 
Cash, end of period $25,341  $16,574 
         
Supplemental and non-cash information  
   
 
Cash paid during the period for interest $7  $20 
Company(1)(2) 
Investment
 
Interest
Rate

Maturity
Date
 
Principal/
Par Amount(3)
  
Amortized
Cost(4)
  
Fair Value
  
Percentage
of Net
Assets
 
Investments    
             
Non-controlled/non-affiliated senior secured debt (5)
    
             
Aerospace and defense                  
Mattco Forge, Inc. (13) First lien senior secured revolving loan L+7.25%
12/6/2024 
$
506
  $(8) $(22)  (0.02)%
Mattco Forge, Inc. (8)(9) First lien senior secured term loan L+7.25%
12/6/2024  2,196   2,159   2,100   1.68%
     
       2,151   2,078   1.66%
Chemicals    
                 
AM Buyer, LLC (13) First lien senior secured revolving loan L+6.75%
5/1/2025 
$
111
  $(2) $(2)  (0.00)%
AM Buyer, LLC (8) First lien senior secured term loan L+6.75%
5/1/2025  480   471   473   0.38%
G2O Technologies, LLC (13) First lien senior secured revolving loan L+6.00%
3/31/2025  207   (3)  (3)  (0.00)%
G2O Technologies, LLC (6) First lien senior secured term loan L+6.00%
3/31/2025  1,565   1,540   1,543   1.23%
Revolution Plastics Buyer, LLC (6) First lien senior secured revolving loan L+5.00%
8/15/2025  704   507   509   0.41%
Revolution Plastics Buyer, LLC (6)(8) First lien senior secured term loan L+5.00%
8/15/2025  2,656   2,615   2,629   2.10%
Teel Plastics, LLC (13) First lien senior secured revolving loan L+5.00%
1/24/2025  324   (4)  (4)  (0.00)%
Teel Plastics, LLC (6) First lien senior secured term loan L+5.00%
1/24/2025  1,818   1,793   1,798   1.43%
     
       6,917   6,943   5.54%
Commercial services and supplies    
                 
Edko Acquisition, LLC (13) First lien senior secured revolving loan L+5.75%
6/25/2026 
$
38
  $(1) $(1)  (0.00)%
Edko Acquisition, LLC (8) First lien senior secured term loan L+5.75%
6/25/2026  1,023   1,003   1,005   0.80%
Nimlok Company, LLC (13)(17) First lien senior secured revolving loan L+7.50%
11/27/2024  320   (4)  (9)  (0.01)%
Nimlok Company, LLC (8) First lien senior secured term loan L+7.50%
11/27/2025  1,923   1,896   1,852   1.48%
     
       2,894   2,847   2.27%
Construction and engineering    
                 
Domino Equipment Company, LLC (13) First lien senior secured revolving loan L+6.00%
4/1/2026 
$
79
  $(1) $(1)  (0.00)%
Domino Equipment Company, LLC (8) First lien senior secured term loan L+6.00%
4/1/2026  582   572   573   0.46%
     
       571   572   0.46%
Containers and packaging    
                 
Innovative FlexPak, LLC (6) First lien senior secured revolving loan L+6.00%
1/23/2025 
$
94
  $90  $91   0.07%
Innovative FlexPak, LLC (12) First lien senior secured revolving loan P+5.00%
1/23/2025  
125
   120   122   0.10%
Innovative FlexPak, LLC (9) First lien senior secured term loan L+6.00%
1/23/2025  2,685   2,639   2,658   2.12%
Jansy Packaging, LLC (13) First lien senior secured revolving loan L+7.00%
9/30/2022  706   (7)  (22)  (0.02)%
Jansy Packaging, LLC (6) First lien senior secured term loan L+7.00%
9/30/2022  1,093   1,076   1,058   0.84%
MRC Keeler Acquisition, LLC (13) First lien senior secured delayed draw term loan L+5.75%
12/4/2025  150   (3)  (2)  (0.00)%
MRC Keeler Acquisition, LLC (13) First lien senior secured revolving loan L+5.75%
12/4/2025  150   (3)  (2)  (0.00)%
MRC Keeler Acquisition, LLC (8) First lien senior secured term loan L+5.75%
12/4/2025  969   952   954   0.76%
Vanguard Packaging, LLC (8) First lien senior secured revolving loan L+5.25%
8/9/2024  535   174   172   0.14%
Vanguard Packaging, LLC (8) First lien senior secured term loan L+5.25%
8/9/2024  1,209   1,198   1,195   0.95%
     
       6,236   6,224   4.96%
Distributors    
                 
RTP Acquisition, LLC (13) First lien senior secured revolving loan L+6.00%
8/17/2026  38   (1)  (1)  (0.00)%
RTP Acquisition, LLC (7) First lien senior secured term loan L+6.00%
8/17/2026  538   527   527   0.42%
     
       526   526   0.42%
Diversified consumer services    
                 
50Floor, LLC (13) First lien senior secured revolving loan L+5.75%
12/31/2025 
$
199
  $(3) $(3)  (0.00)%
50Floor, LLC (8) First lien senior secured term loan L+5.75%
12/31/2026  985   967   969   0.77%
Groundworks Operations, LLC (8) First lien senior secured delayed draw term loan L+4.75%
1/17/2026  1,622   1,348   1,351   1.08%
Groundworks Operations, LLC (13) First lien senior secured delayed draw term loan L+4.75%
1/17/2026  228   (3)  (3)  (0.00)%
Groundworks Operations, LLC (13) First lien senior secured revolving loan L+4.75%
1/17/2026  387   (5)  (5)  (0.00)%
Groundworks Operations, LLC (8) First lien senior secured term loan L+4.75%
1/17/2026  2,366   2,331   2,336   1.86%
ISSA, LLC (13) First lien senior secured revolving loan L+6.50%
3/1/2027  131   (2)  (2)  (0.00)%
ISSA, LLC (8) First lien senior secured term loan L+6.50%
3/1/2027  876   859   861   0.69%
Kalkomey Enterprises, LLC (13) First lien senior secured revolving loan L+6.50%
4/24/2025  77   (1)  (1)  (0.00)%
Kalkomey Enterprises, LLC (8) First lien senior secured term loan L+6.50%
4/24/2026  1,063   1,041   1,047   0.83%
NSG Buyer, Inc. (13) First lien senior secured revolving loan L+5.50%
9/30/2024  294   (2)  (1)  (0.00)%
NSG Buyer, Inc. (6) First lien senior secured term loan L+5.50%
9/30/2025  2,317   2,300   2,300   1.83%
PPW Acquisition, LLC (13) First lien senior secured revolving loan L+6.00%
9/30/2026  38   (1)  (1)  (0.00)%
PPW Acquisition, LLC (8) First lien senior secured term loan L+6.00%
9/30/2026  613   600   600   0.48%
United Land Services Opco Parent, LLC (8) First lien senior secured delayed draw term loan L+6.00%
3/23/2026  1,074   164   165   0.13%
United Land Services Opco Parent, LLC (13) First lien senior secured revolving loan L+6.00%
3/23/2026  131   (2)  (2)  (0.00)%
United Land Services Opco Parent, LLC (8) First lien senior secured term loan L+6.00%
3/23/2026  306   301   301   0.24%
     
       9,892   9,912   7.90%
Electronic equipment, instruments and components    
                 
Advanced Lighting Acquisition, LLC (13) First lien senior secured revolving loan L+9.00%
11/22/2025 
$
324
  $(5) $(8)  (0.01)%
Advanced Lighting Acquisition, LLC (6)(8) First lien senior secured term loan L+9.00%
11/22/2025  1,460   1,438   1,427   1.14%
     
       1,433   1,419   1.13%
Food and staples retailing    
                 
Engelman Baking Co., LLC (6) First lien senior secured revolving loan L+6.75%
2/28/2025 
$
207
  $46  $38   0.03%
Engelman Baking Co., LLC (6) First lien senior secured term loan L+6.75%
2/28/2025  
722
   707   679   0.54%
Mad Rose Company, LLC (13)(22) First lien senior secured revolving loan L+6.50%
5/7/2026  
104
   (2)  (2)  (0.00)%
Mad Rose Company, LLC (8) First lien senior secured term loan L+6.50%
5/7/2026  
315
   307   308   0.25%
NutriScience Innovations, LLC (13) First lien senior secured revolving loan L+7.00%
4/21/2026  
131
   (2)  (2)  (0.00)%
NutriScience Innovations, LLC (8) First lien senior secured term loan L+7.00%
4/21/2026  
483
   474   475   0.38%
     
       1,530   1,496   1.19%
Food products    
                 
Icelandirect, LLC (12) First lien senior secured revolving loan P+5.00%
7/30/2026 
$
38
  $4  $4   0.00%
Icelandirect, LLC (8) First lien senior secured term loan L+6.00%
7/30/2026  
693
   680   680   0.54%
Starwest Botanicals Acquisition, LLC (13) First lien senior secured revolving loan L+5.25%
4/30/2027  
174
   (3)  (3)  (0.00)%
Starwest Botanicals Acquisition, LLC (8) First lien senior secured term loan L+5.25%
4/30/2027  
817
   804   805   0.64%
     
       1,485   1,486   1.18%
Gas utilities    
                 
Hydromax USA, LLC (6) First lien senior secured delayed draw term loan L+6.25%
12/30/2026 
$
113
  $112  $112   0.09%
Hydromax USA, LLC (6) First lien senior secured revolving loan L+6.25%
12/30/2026  228   19   20   0.02%
Hydromax USA, LLC (6) First lien senior secured term loan L+6.25%
12/30/2026  1,250   1,230   1,232   0.98%
             1,361   1,364   1.09%







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

6
5

AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of March 31, 2022
  (Unaudited)

Company(1)(2)
Investment 
Reference
Rate
and Spread
 
Interest
Rate
  Maturity
Date		 
Principal/
Par Amount(3)
  
Amortized
Cost(4)
  
Fair
Value
  
Percentage
of Net Assets
 
Investments                    
Non-controlled/non-affiliated senior secured debt (5)
                    
Aerospace and defense                    
Mattco Forge, Inc. (6)
First lien senior secured revolving loan L + 7.25%  8.26% 12/6/2024 $506  $(7) $(24)  (0.01)%
Mattco Forge, Inc.First lien senior secured term loan L + 7.25%  8.26% 12/6/2024  2,185   2,152   2,082   1.12%
                2,145   2,058   1.10%
Auto components                         
AvCarb, LLC (6)
First lien senior secured delayed draw term loan L + 6.00%  7.00% 11/12/2026 $666  $(11) $(11)  (0.01)%
AvCarb, LLC (6)
First lien senior secured revolving loan L + 6.00%  7.00% 11/12/2026  38   (1)  (1)  
(0.00
)%
AvCarb, LLCFirst lien senior secured term loan L + 6.00%  7.00% 11/12/2026  498   489   490   0.26%
Vehicle Accessories, Inc.First lien senior secured revolving loan P + 4.50%  8.00% 11/30/2026  38   3   3   0.00%
Vehicle Accessories, Inc.First lien senior secured term loan S + 5.50%  6.50% 11/30/2026  1,679   1,667   1,667   0.89%
                2,147   2,148   1.15%
Chemicals                         
AM Buyer, LLC (6)
First lien senior secured revolving loan L + 6.75%  8.00% 5/1/2025 $111  $(2) $(1)  
(0.00
)%
AM Buyer, LLCFirst lien senior secured term loan L + 6.75%  8.00% 5/1/2025  477   470   472   0.25%
Answer Acquisition, LLCFirst lien senior secured revolving loan L + 6.00%  7.00% 12/30/2026  38   3   3   0.00%
Answer Acquisition, LLCFirst lien senior secured term loan L + 6.00%  7.00% 12/30/2026  1,712   1,679   1,682   0.90%
SASE Company, LLC (6)
First lien senior secured revolving loan L + 6.00%  7.01% 11/15/2026  38   (1)  (1)  
(0.00
)%
SASE Company, LLCFirst lien senior secured term loan L + 6.00%  7.01% 11/15/2026 
1,441   1,415   1,417   0.76%
Teel Plastics, LLC (6)
First lien senior secured revolving loan L + 5.00%  6.00% 1/24/2025  324   (4)  (3)  
(0.00
)%
Teel Plastics, LLCFirst lien senior secured term loan L + 5.00%  6.00% 1/24/2025  1,809   1,788   1,792   0.96%
USALCO, LLCFirst lien senior secured revolving loan L + 6.00%  7.00% 10/19/2026  100   32   32   0.02%
USALCO, LLCFirst lien senior secured term loan L + 6.00%  7.00% 10/19/2027  1,898   1,880   1,885   1.01%
                7,260   7,278   3.90%
Commercial services and supplies                         
Alliance Environmental Group, LLCFirst lien senior secured delayed draw term loan L + 6.00%  7.00% 12/30/2023 $75  $32  $32   0.02%
Alliance Environmental Group, LLCFirst lien senior secured revolving loan P + 5.00%  8.50% 12/30/2027  38   12   12   0.01%
Alliance Environmental Group, LLCFirst lien senior secured term loan L + 6.00%  7.00% 12/30/2027  1,462   1,433   1,436   0.77%
Edko Acquisition, LLC (6)
First lien senior secured revolving loan S + 5.75%  6.75% 6/25/2026  38   (1)  (1)  
(0.00
)%
Edko Acquisition, LLCFirst lien senior secured term loan S + 5.75%  6.75% 6/25/2026  1,148   1,127   1,129   0.61%
Gold Medal Holdings, Inc. (17)
First lien senior secured revolving loan S + 7.00%  8.00% 3/17/2027  50   14   15   0.01%
Gold Medal Holdings, Inc.First lien senior secured term loan S + 7.00%  8.00% 3/17/2027  734   723   726   0.39%
Green Monster Acquisition, LLC (6)
First lien senior secured revolving loan L + 5.50%  6.51% 12/28/2026  38   (1)  (1)  
(0.00
)%
Green Monster Acquisition, LLCFirst lien senior secured term loan L + 5.50%  6.51% 12/28/2026  1,185   1,163   1,164   0.62%
HLSG Intermediate, LLC (6)
First lien senior secured delayed draw term loan S + 6.25%  7.74% 3/31/2028  96   (1)  (1)  
(0.00
)%
HLSG Intermediate, LLC (6)
First lien senior secured revolving loan S + 6.25%  7.74% 3/31/2028  60   (1)  (1)  
(0.00
)%
HLSG Intermediate, LLCFirst lien senior secured term loan S + 6.25%  7.74% 3/31/2028  1,012   999   999   0.54%
Nimlok Company, LLC (6)(10)
First lien senior secured revolving loan L + 7.50%  8.50% 11/27/2024  320   (3)  (6)  
(0.00
)%
Nimlok Company, LLCFirst lien senior secured term loan L + 7.50%  8.50% 11/27/2025  1,928   1,904   1,895   1.02%
Steel City Wash, LLCFirst lien senior secured delayed draw term loan S + 6.00%  7.00% 12/27/2026  90   89   89   0.05%
Steel City Wash, LLC (6)
First lien senior secured revolving loan S + 6.00%  7.00% 12/27/2026  38   (1)  (1)  
(0.00
)%
Steel City Wash, LLCFirst lien senior secured term loan S + 6.00%  7.00% 12/27/2026  699   686   687   0.37%
                8,174   8,173   4.38%
Construction and engineering                         
BCI Burke Holding Corp. (6)
First lien senior secured delayed draw term loan L + 5.75%  6.75% 12/14/2027 $132  $(2) $(2)  
(0.00
)%
BCI Burke Holding Corp.First lien senior secured revolving loan L + 5.75%  6.75% 12/14/2027  79   16   16   0.01%
BCI Burke Holding Corp.First lien senior secured term loan L + 5.75%  6.75% 12/14/2027  915   902   903   0.48%
CPS HVAC Group, LLC (6)
First lien senior secured delayed draw term loan L + 6.75%  7.76% 12/15/2026  150   (3)  (3)  
(0.00
)%
CPS HVAC Group, LLCFirst lien senior secured revolving loan P + 5.75%  9.25% 12/15/2026  38   5   5   0.00%
CPS HVAC Group, LLCFirst lien senior secured term loan L + 6.75%  7.76% 12/15/2026  274   269   269   0.14%
Domino Equipment Company, LLC (6)
First lien senior secured revolving loan S + 6.25%  7.25% 4/1/2026  79   (2)  (1)  
(0.00
)%
Domino Equipment Company, LLCFirst lien senior secured term loan S + 6.25%  7.25% 4/1/2026  579   568   568   0.30%
Highland Acquisition, Inc.First lien senior secured revolving loan S + 5.50%  6.50% 3/9/2027  30   3   3   0.00%
Highland Acquisition, Inc.First lien senior secured term loan S + 5.50%  6.50% 3/9/2027  944   926   925   0.50%
                2,682   2,683   1.44%
Containers and packaging                         
Innovative FlexPak, LLCFirst lien senior secured revolving loan L + 6.00%  7.01% 1/23/2025 $627  $211  $214   0.11%
Innovative FlexPak, LLCFirst lien senior secured term loan L + 6.00%  7.01% 1/23/2025  2,651   2,611   2,628   1.41%
Jansy Packaging, LLC (6)
First lien senior secured revolving loan S + 6.00%  7.00% 9/30/2023  470   (5)  (7)  
(0.00
)%
Jansy Packaging, LLCFirst lien senior secured term loan S + 6.00%  7.00% 9/30/2023  1,174   1,156   1,157   0.62%
MRC Keeler Acquisition, LLC (6)
First lien senior secured delayed draw term loan L + 5.75%  6.76% 12/4/2025  150   (2)  (2)  
(0.00
)%
MRC Keeler Acquisition, LLC (6)
First lien senior secured revolving loan L + 5.75%  6.76% 12/4/2025  150   (2)  (2)  
(0.00
)%
MRC Keeler Acquisition, LLCFirst lien senior secured term loan L + 5.75%  6.76% 12/4/2025  964   949   950   0.51%
Vanguard Packaging, LLCFirst lien senior secured revolving loan L + 5.25%  6.25% 8/9/2024  535   228   226   0.12%
Vanguard Packaging, LLCFirst lien senior secured term loan L + 5.25%  6.25% 8/9/2024  1,202   1,193   1,189   0.64%
                6,339   6,353   3.41%
Distributors                         
RTP Acquisition, LLC (6)
First lien senior secured revolving loan L + 6.50%  7.51% 8/17/2026 $38  $(1) $(1)  
(0.00
)%
RTP Acquisition, LLCFirst lien senior secured term loan L + 6.50%  7.51% 8/17/2026  535   525   526   0.28%
                524   525   0.28%
Diversified consumer services                         
50Floor, LLC (6)
First lien senior secured revolving loan L + 5.75%  6.76% 12/31/2025 $199  $(3) $(3)  
(0.00
)%
50Floor, LLCFirst lien senior secured term loan L + 5.75%  6.76% 12/31/2026  980   964   965   0.52%
Groundworks Operations, LLCFirst lien senior secured delayed draw term loan L + 5.00%  6.01% 1/17/2026  1,880   1,820   1,828   0.98%
Groundworks Operations, LLC (6)
First lien senior secured revolving loan L + 5.00%  6.01% 1/17/2026  387   (5)  (3)  
(0.00
)%
Groundworks Operations, LLCFirst lien senior secured term loan L + 5.00%  6.01% 1/17/2026  2,498   2,465   2,478   1.33%
Home Brands Group Holdings, Inc. (6)
First lien senior secured revolving loan L + 5.00%  6.00% 11/8/2026  48   (1)  (1)  
(0.00
)%
Home Brands Group Holdings, Inc.First lien senior secured term loan L + 5.00%  6.00% 11/8/2026  2,052   2,013   2,017   1.08%
ISSA, LLCFirst lien senior secured revolving loan L + 6.00%  7.01% 3/1/2027  131   63   64   0.03%
ISSA, LLCFirst lien senior secured term loan L + 6.00%  7.01% 3/1/2027  871   856   858   0.46%
Juniper Landscaping Holdings LLC (6)
First lien senior secured delayed draw term loan L + 6.00%  7.00% 12/29/2026  88   (1)  (1)  
(0.00
)%
Juniper Landscaping Holdings LLC (6)
First lien senior secured revolving loan L + 6.00%  7.00% 12/29/2026  44   (1)  (1)  
(0.00
)%
Juniper Landscaping Holdings LLCFirst lien senior secured term loan L + 6.00%  7.00% 12/29/2026  1,324   1,301   1,304   0.70%
Kalkomey Enterprises, LLCFirst lien senior secured revolving loan L + 6.75%  8.00% 4/24/2025  77   30   30   0.02%
Kalkomey Enterprises, LLCFirst lien senior secured term loan L + 6.75%  8.00% 4/24/2026 
1,058   1,038   1,043   0.56%
NSG Buyer, Inc. (6)
First lien senior secured revolving loan L + 5.25%  6.25% 9/30/2024  294   (1)  (1)  
(0.00
)%
NSG Buyer, Inc.First lien senior secured term loan L + 5.25%  6.25% 9/30/2025  2,295   2,278   2,291   1.23%
PPW Acquisition, LLCFirst lien senior secured revolving loan L + 6.25%  7.25% 9/30/2026  38   16   16   0.01%
PPW Acquisition, LLCFirst lien senior secured term loan L + 6.25%  7.25% 9/30/2026  609   598   599   0.32%
United Land Services Opco Parent, LLCFirst lien senior secured delayed draw term loan L + 6.00%  7.00% 3/23/2026  1,073   299   300   0.16%
United Land Services Opco Parent, LLCFirst lien senior secured revolving loan L + 6.00%  7.00% 3/23/2026  131   83   83   0.04%
United Land Services Opco Parent, LLCFirst lien senior secured term loan L + 6.00%  7.00% 3/23/2026  305   300   300   0.16%
                14,112   14,166   7.60%
Electrical equipment                         
AEP Passion Intermediate Holdings, Inc.First lien senior secured delayed draw term loan L + 5.50%  6.50% 10/5/2027 $72  $18  $18   0.01%
AEP Passion Intermediate Holdings, Inc.First lien senior secured revolving loan L + 5.50%  6.50% 10/5/2027  48   30   30   0.02%
AEP Passion Intermediate Holdings, Inc.First lien senior secured term loan L + 5.50%  6.50% 10/5/2027  1,291   1,273   1,275   0.68%
                1,321   1,323   0.71%

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

6
AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of September 30, 2021March 31, 2022
  (Unaudited)
(Amounts in thousands)
(Unaudited)
Company(1)(2)
Investment  
Reference
Rate
and Spread
 
Interest
Rate
  Maturity Date 
Principal/
Par Amount(3)
  
Amortized
Cost(4)
  
Fair
Value
  
Percentage of
Net Assets
 
Investments                    
Non-controlled/non-affiliated senior secured debt (5) - Continued
                    
Electronic equipment, instruments and components                    
Advanced Lighting Acquisition, LLC (6)
First lien senior secured revolving loan S + 7.00%  8.00% 11/22/2025 $324  $(4) $(3)  
(0.00
)%
Advanced Lighting Acquisition, LLCFirst lien senior secured term loan S + 7.00%  8.00% 11/22/2025  1,406   1,387   1,394   0.75%
Nelson Name Plate CompanyFirst lien senior secured delayed draw term loan L + 5.75%  6.76% 10/18/2026  120   103   103   0.06%
Nelson Name Plate CompanyFirst lien senior secured revolving loan L + 5.75%  6.76% 10/18/2026  90   17   17   0.01%
Nelson Name Plate CompanyFirst lien senior secured term loan L + 5.75%  6.76% 10/18/2026  774   760   761   0.41%
                2,263   2,272   1.22%
Food and staples retailing                         
Engelman Baking Co., LLCFirst lien senior secured revolving loan L + 6.25%  7.25% 2/28/2025 $207  $41  $40   0.02%
Engelman Baking Co., LLCFirst lien senior secured term loan L + 6.25%  7.25% 2/28/2025  718   704   705   0.38%
Mad Rose Company, LLC (6)(15)
First lien senior secured revolving loan S + 6.50%  7.50% 5/7/2026  119   (3)  (2)  
(0.00
)%
Mad Rose Company, LLCFirst lien senior secured term loan S + 6.50%  7.50% 5/7/2026  938   920   922   0.49%
Main Street Gourmet, LLC (6)
First lien senior secured delayed draw term loan L + 5.25%  6.26% 11/10/2025  666   (9)  (8)  
(0.00
)%
Main Street Gourmet, LLCFirst lien senior secured revolving loan L + 5.25%  6.26% 11/10/2025  38   18   18   0.01%
Main Street Gourmet, LLCFirst lien senior secured term loan L + 5.25%  6.26% 11/10/2025  1,129   1,114   1,116   0.60%
NutriScience Innovations, LLC (6)(16)
First lien senior secured revolving loan L + 7.00%  8.01% 4/21/2026  131   (2)  (2)  
(0.00
)%
NutriScience Innovations, LLCFirst lien senior secured term loan L + 7.00%  8.01% 4/21/2026  480   472   473   0.25%
SCP Beverage Buyer, LLCFirst lien senior secured revolving loan L + 6.00%  7.00% 11/24/2026  38   14   14   0.01%
SCP Beverage Buyer, LLCFirst lien senior secured term loan L + 6.00%  7.00% 11/24/2026  415   407   408   0.22%
                3,676   3,684   1.98%
Food products                         
Icelandirect, LLCFirst lien senior secured revolving loan L + 6.00%  7.00% 7/30/2026 $38  $20  $20   0.01%
Icelandirect, LLCFirst lien senior secured term loan L + 6.00%  7.00% 7/30/2026  690   678   678   0.36%
Starwest Botanicals Acquisition, LLCFirst lien senior secured revolving loan P + 4.25%  7.75% 4/30/2027  174   32   32   0.02%
Starwest Botanicals Acquisition, LLCFirst lien senior secured term loan L + 5.25%  6.26% 4/30/2027  813   801   803   0.43%
                1,531   1,533   0.82%
Gas utilities                         
Hydromax USA, LLCFirst lien senior secured delayed draw term loan L + 6.25%  7.25% 12/30/2026 $113  $111  $111   0.06%
Hydromax USA, LLCFirst lien senior secured revolving loan L + 6.25%  7.25% 12/30/2026  228   99   100   0.05%
Hydromax USA, LLCFirst lien senior secured term loan L + 6.25%  7.25% 12/30/2026  1,244   1,225   1,228   0.66%
                1,435   1,439   0.77%
Health care equipment and supplies                         
626 Holdings Equity, LLC (6)
First lien senior secured delayed draw term loan S + 6.00%  7.00% 2/14/2028 $315  $(6) $(6)  
(0.00
)%
626 Holdings Equity, LLC (6)
First lien senior secured revolving loan S + 6.00%  7.00% 2/14/2027  75   (1)  (1)  
(0.00
)%
626 Holdings Equity, LLCFirst lien senior secured term loan S + 6.00%  7.00% 2/14/2028  891   873   873   0.47%
EMSAR Acquisition LLCFirst lien senior secured delayed draw term loan L + 6.50%  7.51% 3/30/2026  666   207   208   0.11%
EMSAR Acquisition LLCFirst lien senior secured revolving loan L + 6.50%  7.51% 3/30/2026  134   65   65   0.03%
EMSAR Acquisition LLCFirst lien senior secured term loan L + 6.50%  7.51% 3/30/2026  643   632   633   0.34%
Reliable Medical Supply LLCFirst lien senior secured delayed draw term loan L + 7.00%  8.00% 4/8/2025  68   7   7   0.00%
Reliable Medical Supply LLCFirst lien senior secured revolving loan L + 7.00%  8.00% 4/8/2025  138   108   108   0.06%
Reliable Medical Supply LLCFirst lien senior secured term loan L + 7.00%  8.00% 4/8/2025  757   741   746   0.40%
SCA Buyer, LLCFirst lien senior secured delayed draw term loan L + 6.00%  7.01% 1/20/2026  397   95   98   0.05%
SCA Buyer, LLCFirst lien senior secured revolving loan L + 6.00%  7.01% 1/20/2026  133   50   51   0.03%
SCA Buyer, LLCFirst lien senior secured term loan L + 6.00%  7.01% 1/20/2026  762   745   751   0.40%
Spectrum Solutions, LLC (6)
First lien senior secured revolving loan L + 6.00%  7.00% 3/5/2026  267   (4)  (4)  
(0.00
)%
Spectrum Solutions, LLCFirst lien senior secured term loan L + 6.00%  7.00% 3/5/2026  687   676   677   0.36%
                4,188   4,206   2.26%
Health care providers and services                         
Agility Intermediate, Inc. (6)
First lien senior secured delayed draw term loan L + 6.50%  7.50% 4/15/2026 $401  $(6) $(6)  
(0.00
)%
Agility Intermediate, Inc. (6)
First lien senior secured revolving loan L + 6.50%  7.50% 4/15/2026  134   (2)  (2)  
(0.00
)%
Agility Intermediate, Inc.First lien senior secured term loan L + 6.50%  7.50% 4/15/2026  244   240   240   0.13%
Apex Dental Partners, LLCFirst lien senior secured delayed draw term loan L + 6.50%  7.50% 11/23/2025  448   408   408   0.22%
Apex Dental Partners, LLCFirst lien senior secured revolving loan L + 6.50%  7.50% 11/23/2025  150   35   35   0.02%
Apex Dental Partners, LLCFirst lien senior secured term loan L + 6.50%  7.50% 11/23/2025  626   617   618   0.33%
ASC Ortho Management, LLC (6)
First lien senior secured delayed draw term loan L + 6.00%  7.00% 12/31/2026  360   (7)  (6)  
(0.00
)%
ASC Ortho Management, LLC (6)
First lien senior secured revolving loan L + 6.00%  7.00% 12/31/2026  38   (1)  (1)  
(0.00
)%
ASC Ortho Management, LLCFirst lien senior secured term loan L + 6.00%  7.00% 12/31/2026  523   513   514   0.28%
ASP Global Acquisition, LLCFirst lien senior secured delayed draw term loan L + 5.50%  6.51% 1/21/2025  682   674   673   0.36%
ASP Global Acquisition, LLC (6)(11)
First lien senior secured revolving loan L + 5.50%  6.51% 1/21/2025  485   (5)  (6)  
(0.00
)%
ASP Global Acquisition, LLCFirst lien senior secured term loan L + 5.50%  6.51% 1/21/2025  2,795   2,758   2,768   1.48%
Beacon Oral Specialists Management LLCFirst lien senior secured delayed draw term loan S + 6.00%  7.00% 12/14/2025  843   680   681   0.37%
Beacon Oral Specialists Management LLCFirst lien senior secured revolving loan S + 6.00%  7.00% 12/14/2025  188   68   69   0.04%
Beacon Oral Specialists Management LLCFirst lien senior secured term loan S + 6.00%  7.00% 12/14/2025  950   935   937   0.50%
Behavior Frontiers, LLC (14)
First lien senior secured revolving loan S + 7.50%  8.50% 5/21/2026  38   18   16   0.01%
Behavior Frontiers, LLCFirst lien senior secured term loan S + 7.50% 
 8.50% 5/21/2026  655   643   604   0.32%
Brightview, LLC (6)
First lien senior secured delayed draw term loan L + 5.75%  6.75% 12/14/2026  107   (2)  (1)  
(0.00
)%
Brightview, LLC (6)
First lien senior secured revolving loan L + 5.75%  6.75% 12/14/2026  52   (1)  (1)  
(0.00
)%
Brightview, LLCFirst lien senior secured term loan L + 5.75%  6.75% 12/14/2026  698   686   691   0.37%
Canadian Orthodontic Partners Corp. (7)
First lien senior secured delayed draw term loan C + 6.50%  7.50% 3/19/2026 C$360   212   211   0.11%
Canadian Orthodontic Partners Corp. (7)
First lien senior secured revolving loan P + 5.50%  9.00% 3/19/2026 C$267   204   205   0.11%
Canadian Orthodontic Partners Corp. (7)
First lien senior secured term loan C + 6.50%  7.50% 3/19/2026 C$226   177   175   0.09%
Canadian Orthodontic Partners Corp. (7)
First lien senior secured revolving loan P + 5.50%  9.00% 3/19/2026  107   33   32   0.02%
Community Care Partners, LLCFirst lien senior secured delayed draw term loan L + 5.25%  6.25% 8/11/2025  224   112   113   0.06%
Community Care Partners, LLC (6)
First lien senior secured revolving loan L + 5.25%  6.25% 8/11/2025  38   (1)  (1)  
(0.00
)%
Community Care Partners, LLCFirst lien senior secured term loan L + 5.25%  6.25% 8/11/2025  654   644   645   0.35%
Dermatology Medical Partners OpCo, LLCFirst lien senior secured delayed draw term loan L + 6.50%  7.50% 10/29/2026  97   12   12   0.01%
Dermatology Medical Partners OpCo, LLCFirst lien senior secured revolving loan L + 6.50%  7.50% 10/29/2026  38   14   14   0.01%
Dermatology Medical Partners OpCo, LLCFirst lien senior secured term loan L + 6.50%  7.50% 10/29/2026  323   317   318   0.17%
Varsity DuvaSawko Operating Corp. (6)
First lien senior secured revolving loan L + 6.00%  7.01% 11/27/2024  474   (5)  (4)  
(0.00
)%
Varsity DuvaSawko Operating Corp.First lien senior secured term loan L + 6.00%  7.01% 11/27/2024  2,676   2,646   2,653   1.42%
EH Management Company, LLC (6)
First lien senior secured revolving loan L + 5.50%  6.51% 7/15/2026  38   (1)  (1)  
(0.00
)%
EH Management Company, LLCFirst lien senior secured term loan L + 5.50%  6.51% 7/15/2026  425   418   418   0.22%
Geriatric Medical and Surgical Supply, LLC (6)
First lien senior secured revolving loan L + 6.00%  7.01% 12/21/2025  300   (5)  (4)  
(0.00
)%
Geriatric Medical and Surgical Supply, LLCFirst lien senior secured term loan L + 6.00%  7.01% 12/21/2025  1,024   1,008   1,010   0.54%
Golden Bear PT Partners, LLCFirst lien senior secured delayed draw term loan L + 6.25%  7.25% 10/22/2026  382   167   168   0.09%
Golden Bear PT Partners, LLCFirst lien senior secured revolving loan L + 6.25%  7.25% 10/22/2026  38   27   27   0.01%
Golden Bear PT Partners, LLCFirst lien senior secured term loan L + 6.25%  7.25% 10/22/2026  1,497   1,469   1,472   0.79%
Guardian Dentistry Practice Management, LLCFirst lien senior secured delayed draw term loan L + 6.00%  7.00% 12/14/2023  322   317   317   0.17%
Guardian Dentistry Practice Management, LLCFirst lien senior secured delayed draw term loan L + 6.00%  7.00% 12/14/2023  68   8   8   0.00%
Guardian Dentistry Practice Management, LLC (6)
First lien senior secured revolving loan L + 6.00%  7.00% 8/20/2026  23   0   0   0.00%
Guardian Dentistry Practice Management, LLCFirst lien senior secured term loan L + 6.00%  7.00% 8/20/2026  524   516   517   0.28%
Network Partners Acquisition, LLC (6)
First lien senior secured delayed draw term loan L + 6.50%  7.51% 12/30/2026  113   (2)  (2)  
(0.00
)%
Network Partners Acquisition, LLC (6)
First lien senior secured revolving loan L + 6.50%  7.51% 12/30/2026  38   (1)  (1)  
(0.00
)%
Network Partners Acquisition, LLCFirst lien senior secured term loan L + 6.50%  7.51% 12/30/2026  395   387   388   0.21%
Novum Orthopedic Partners Management, LLC (6)
First lien senior secured delayed draw term loan L + 5.75%  7.25% 12/29/2027  256   (3)  (3)  
(0.00
)%
Novum Orthopedic Partners Management, LLC (6)
First lien senior secured revolving loan L + 5.75%  7.25% 12/29/2026  75   (1)  (1)  
(0.00
)%
Novum Orthopedic Partners Management, LLC
First lien senior secured term loan L + 5.75%  7.25%  12/29/2027 $1,866  $1,830  $1,838  $0.99%



 
 
Company(1)(2)
 
 
 
Investment
 
 
Interest
Rate
 
 
Maturity
Date
 
 
Principal/
Par Amount(3)
  
 
Amortized
Cost(4)
  
 
 
Fair Value
  
Percentage
of Net
Assets
 
Investments - Continued                  
Non-controlled/non-affiliated senior secured debt (5) - Continued                  
Health care equipment and supplies                  
EMSAR Acquisition LLC (8) First lien senior secured delayed draw term loan L+6.50%
3/30/2026 
$
667
  $194  $195   0.16%
EMSAR Acquisition LLC (8) First lien senior secured revolving loan L+6.50%
3/30/2026  134   24   24   0.02%
EMSAR Acquisition LLC (8) First lien senior secured term loan L+6.50%
3/30/2026  646   634   635   0.51%
Reliable Medical Supply LLC (13) First lien senior secured delayed draw term loan L+7.00%
4/8/2025  68   (1)  (1)  (0.00)%
Reliable Medical Supply LLC (13) First lien senior secured revolving loan L+7.00%
4/8/2025  138   (3)  (2)  (0.00)%
Reliable Medical Supply LLC (8) First lien senior secured term loan L+7.00%
4/8/2025  760   744   748   0.60%
SCA Buyer, LLC (8) First lien senior secured delayed draw term loan L+6.50%
1/20/2026  397   35   38   0.03%
SCA Buyer, LLC (8) First lien senior secured revolving loan L+6.50%
1/20/2026  133   23   24   0.02%
SCA Buyer, LLC (8) First lien senior secured term loan L+6.50%
1/20/2026  766   747   754   0.60%
Spectrum Solutions, LLC (13) First lien senior secured revolving loan L+6.00%
3/5/2026  267   (5)  (4)  (0.00)%
Spectrum Solutions, LLC (6) First lien senior secured term loan L+6.00%
3/5/2026  691   678   679   0.54%
     
       3,070   3,090   2.46%
Health care providers and services    
                 
Agility Intermediate, Inc. (13) First lien senior secured delayed draw term loan L+6.50%
4/15/2026 
$
401
  $(7) $(7)  (0.01)%
Agility Intermediate, Inc. (13) First lien senior secured revolving loan L+6.50%
4/15/2026  134   (2)  (2)  (0.00)%
Agility Intermediate, Inc. (9) First lien senior secured term loan L+6.50%
4/15/2026  245   241   241   0.19%
Anne Arundel Dermatology Management, LLC (8) First lien senior secured delayed draw term loan L+6.50%
10/16/2025  776   595   596   0.48%
Anne Arundel Dermatology Management, LLC (6) First lien senior secured revolving loan L+6.50%
10/16/2025  234   42   43   0.03%
Anne Arundel Dermatology Management, LLC (8) First lien senior secured term loan L+6.50%
10/16/2025  869   853   854   0.68%
Apex Dental Partners, LLC (8) First lien senior secured delayed draw term loan L+6.00%
11/23/2025  450   357   357   0.28%
Apex Dental Partners, LLC (13) First lien senior secured revolving loan L+6.00%
11/23/2025  150   (2)  (2)  (0.00)%
Apex Dental Partners, LLC (8) First lien senior secured term loan L+6.00%
11/23/2025  630   619   620   0.49%
ASP Global Acquisition, LLC (8) First lien senior secured delayed draw term loan L+5.50%
1/21/2025  734   675   674   0.54%
ASP Global Acquisition, LLC (13)(15) First lien senior secured revolving loan L+5.50%
1/21/2025  485   (6)  (7)  (0.01)%
ASP Global Acquisition, LLC (8) First lien senior secured term loan L+5.50%
1/21/2025  2,809   2,760   2,774   2.21%
Beacon Oral Specialists Management LLC (13) First lien senior secured delayed draw term loan L+5.75%
12/14/2025  161   (3)  (2)  (0.00)%
Beacon Oral Specialists Management LLC (8)(9) First lien senior secured delayed draw term loan L+5.75%
12/14/2025  536   528   529   0.42%
Beacon Oral Specialists Management LLC (13) First lien senior secured revolving loan L+5.75%
12/14/2025  150   (2)  (2)  (0.00)%
Beacon Oral Specialists Management LLC (8) First lien senior secured term loan L+5.75%
12/14/2025  956   942   944   0.75%
Behavior Frontiers, LLC (6)(21) First lien senior secured revolving loan L+6.25%
5/21/2026  38   18   18   0.01%
Behavior Frontiers, LLC (6) First lien senior secured term loan L+6.25%
5/21/2026  658   644   645   0.51%
Brightview, LLC (8) First lien senior secured delayed draw term loan L+5.50%
4/12/2024  400   49   49   0.04%
Brightview, LLC (13) First lien senior secured revolving loan L+5.50%
4/12/2024  80   (1)  (1)  (0.00)%
Brightview, LLC (8) First lien senior secured term loan L+5.50%
4/12/2024  1,293   1,278   1,280   1.02%
Canadian Orthodontic Partners Corp. (11)(14) First lien senior secured delayed draw term loan C+6.50%
3/19/2026 C$ 361   186   188   0.15%
Canadian Orthodontic Partners Corp. (12)(14) First lien senior secured revolving loan P+5.50%
3/19/2026 C$ 267   27   30   0.02%
Canadian Orthodontic Partners Corp. (11)(14) First lien senior secured term loan L+6.50%
3/19/2026  227   178   177   0.14%
Canadian Orthodontic Partners Corp. (13)(14) First lien senior secured revolving loan C+6.50%
3/19/2026 C$ 107   (2)  (1)  (0.00)%
Community Care Partners, LLC (13) First lien senior secured delayed draw term loan L+5.25%
8/11/2025  225   (4)  (4)  (0.00)%
Community Care Partners, LLC (13) First lien senior secured revolving loan L+5.25%
8/11/2025  38   (1)  (1)  (0.00)%
Community Care Partners, LLC (8) First lien senior secured term loan L+5.25%
8/11/2025  657   646   646   0.52%
Varsity DuvaSawko Operating Corp. (13) First lien senior secured revolving loan L+6.25%
11/27/2024  474   (6)  (5)  (0.00)%
Varsity DuvaSawko Operating Corp. (9) First lien senior secured term loan L+6.25%
11/27/2024  2,772   2,735   2,743   2.19%
EH Management Company, LLC (13) First lien senior secured revolving loan L+6.00%
7/15/2026  38   (1)  (1)  (0.00)%
EH Management Company, LLC (8) First lien senior secured term loan L+6.00%
7/15/2026  427   419   419   0.33%
Geriatric Medical and Surgical Supply, LLC (13) First lien senior secured revolving loan L+6.00%
12/21/2025  300   (5)  (5)  (0.00)%
Geriatric Medical and Surgical Supply, LLC (6) First lien senior secured term loan L+6.00%
12/21/2025  1,029   1,011   1,013   0.81%
Guardian Dentistry Practice Management, LLC (6) First lien senior secured delayed draw term loan L+5.75%
8/20/2026  323   121   121   0.10%
Guardian Dentistry Practice Management, LLC (6) First lien senior secured term loan L+5.75%
8/20/2026  884   869   869   0.69%
Peak Dental Services, LLC (8) First lien senior secured delayed draw term loan L+6.00%
12/31/2025  529   290   290   0.23%
Peak Dental Services, LLC (8) First lien senior secured revolving loan L+6.00%
12/31/2025  133   24   24   0.02%
Peak Dental Services, LLC (8) First lien senior secured term loan L+6.00%
12/31/2025  546   536   537   0.43%
Peak Investment Holdings, LLC (8) First lien senior secured delayed draw term loan L+6.00%
12/6/2024  603   9   10   0.01%
Peak Investment Holdings, LLC (8)(13) First lien senior secured revolving loan L+6.00%
12/6/2024  324   (4)  (5)  (0.00)%
Peak Investment Holdings, LLC (8) First lien senior secured term loan L+6.00%
12/6/2024  1,404   1,384   1,383   1.10%
Revival Animal Health, LLC (13) First lien senior secured revolving loan L+6.50%
4/6/2026  131   (2)  (2)  (0.00)%
Revival Animal Health, LLC (8) First lien senior secured term loan L+6.50%
4/6/2026  503   494   495   0.39%
RQM Buyer, Inc. (13) First lien senior secured delayed draw term loan L+5.75%
8/12/2026  84   (2)  (1)  (0.00)%
RQM Buyer, Inc. (9) First lien senior secured revolving loan L+5.75%
8/12/2026  150   12   14   0.01%
RQM Buyer, Inc. (8)(9) First lien senior secured term loan L+5.75%
8/12/2026  1,165   1,142   1,153   0.92%
SAMGI Buyer, Inc. (13) First lien senior secured revolving loan L+6.50%
4/14/2025  138   (2)  (2)  (0.00)%
SAMGI Buyer, Inc. (8) First lien senior secured term loan L+6.50%
4/14/2025  535   525   525   0.42%
SCP ENT and Allergy Services, LLC (9) First lien senior secured delayed draw term loan L+6.25%
9/25/2025  1,172   80   81   0.06%
SCP ENT and Allergy Services, LLC (13) First lien senior secured revolving loan L+6.25%
9/25/2025  218   (4)  (4)  (0.00)%
SCP ENT and Allergy Services, LLC (8)(9) First lien senior secured term loan L+6.25%
9/25/2025  907   889   890   0.71%
Silver Falls MSO, LLC (9) First lien senior secured revolving loan L+6.25%
8/30/2024  56   55   53.28   0.04%
Silver Falls MSO, LLC (12) First lien senior secured revolving loan P+5.25%
8/30/2024  61   59   58   0.05%
Silver Falls MSO, LLC (8) First lien senior secured term loan L+6.25%
8/30/2024  1,307   1,287   1,270   1.01%
SimiTree Acquisition LLC (13) First lien senior secured delayed draw term loan L+5.25%
5/17/2026  888   (16)  (15)  (0.01)%
SimiTree Acquisition LLC (13) First lien senior secured revolving loan L+5.25%
5/17/2026  178   (3)  (3)  (0.00)%
SimiTree Acquisition LLC (8) First lien senior secured term loan L+5.25%
5/17/2026  1,154   1,132   1,134   0.90%
Southeast Primary Care Partners, LLC (13) First lien senior secured delayed draw term loan L+6.25%
12/30/2025  300   (6)  (6)  (0.00)%
Southeast Primary Care Partners, LLC (13) First lien senior secured revolving loan L+6.25%
12/30/2025  225   (5)  (5)  (0.00)%
Southeast Primary Care Partners, LLC (6) First lien senior secured term loan L+6.25%
12/30/2025  727   710   712   0.57%
Southern Orthodontic Partners Management, LLC (8) First lien senior secured delayed draw term loan L+6.50%
1/27/2026  186   181   181   0.14%
Southern Orthodontic Partners Management, LLC (8) First lien senior secured delayed draw term loan L+6.50%
1/27/2026  531   518   519   0.41%
Southern Orthodontic Partners Management, LLC (8) First lien senior secured revolving loan L+6.50%
1/27/2026  134   38   39   0.03%
Southern Orthodontic Partners Management, LLC (8) First lien senior secured term loan L+6.50%
1/27/2026  333   326   327   0.26%
Vital Care Buyer, LLC (13) First lien senior secured revolving loan L+5.75%
10/19/2025  580   (8)  (7)  (0.01)%
Vital Care Buyer, LLC (8) First lien senior secured term loan L+5.75%
10/19/2025  919   905   907   0.72%
     
       26,295   26,342   21.00%
Health care technology    
                 
Millennia Patient Services, LLC (13) First lien senior secured delayed draw term loan L+6.50%
3/8/2026 
$
267
  $(5) $(4)  (0.00)%
Millennia Patient Services, LLC (13) First lien senior secured revolving loan L+6.50%
3/8/2026  134   (2)  (2)  (0.00)%
Millennia Patient Services, LLC (8) First lien senior secured term loan L+6.50%
3/8/2026  1,003   985   986   0.79%
Spear Education, LLC (13) First lien senior secured delayed draw term loan L+5.00%
2/26/2025  474   (3)  (8)  (0.01)%
Spear Education, LLC (13) First lien senior secured revolving loan L+5.00%
2/26/2025  414   (3)  (7)  (0.01)%
Spear Education, LLC (8)(9) First lien senior secured term loan L+5.00%
2/26/2025  864   858   849   0.68%
     
       1,830   1,814   1.45%








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


7
AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of September 30, 2021March 31, 2022
  (Unaudited)
(Amounts in thousands)
Company(1)(2)
Investment 
Reference
Rate
and Spread
 Interest
Rate		  Maturity Date 
Principal/
Par Amount(3)
  
Amortized
Cost(4)
  
Fair
Value
  
Percentage of
Net Assets
 
Investments                    
Non-controlled/non-affiliated senior secured debt (5) - Continued
                    
Health care providers and services - Continued                    
Peak Dental Services, LLCFirst lien senior secured delayed draw term loan L + 6.50%  7.50% 12/31/2025  
528   480   480   0.26%
Peak Dental Services, LLCFirst lien senior secured revolving loan L + 6.50%  7.50% 12/31/2025  133   25   25   0.01%
Peak Dental Services, LLCFirst lien senior secured term loan L + 6.50%  7.50% 12/31/2025  543   535   535   0.29%
Peak Investment Holdings, LLCFirst lien senior secured delayed draw term loan L + 6.50%  7.51% 12/6/2024  603   11   11   0.01%
Peak Investment Holdings, LLC (6)
First lien senior secured revolving loan L + 6.50%  7.51% 12/6/2024  324   (4)  (5)  
(0.00
)%
Peak Investment Holdings, LLCFirst lien senior secured term loan L + 6.50%  7.51% 12/6/2024  1,298   1,281   1,281   0.69%
Pentec Acquisition Corp. (6)
First lien senior secured revolving loan L + 6.00%  7.01% 10/8/2026  75   (1)  (1)  
(0.00
)%
Pentec Acquisition Corp.First lien senior secured term loan L + 6.00%  7.01% 10/8/2026  1,003   985   994   0.53%
Revival Animal Health, LLC (6)
First lien senior secured revolving loan L + 6.25%  7.26% 4/6/2026  131   (2)  (2)  
(0.00
)%
Revival Animal Health, LLCFirst lien senior secured term loan L + 6.25%  7.26% 4/6/2026  982   965   968   0.52%
RQM Buyer, Inc. (6)
First lien senior secured delayed draw term loan L + 5.75%  6.75% 8/12/2026  84   (1)  (1)  
(0.00
)%
RQM Buyer, Inc. (6)
First lien senior secured revolving loan L + 5.75%  6.75% 8/12/2026  150   (3)  (1)  
(0.00
)%
RQM Buyer, Inc.First lien senior secured term loan L + 5.75%  6.75% 8/12/2026  1,159   1,139   1,149   0.62%
SAMGI Buyer, Inc. (6)
First lien senior secured revolving loan L + 6.00%  7.01% 4/14/2025  138   (3)  (2)  
(0.00
)%
SAMGI Buyer, Inc.First lien senior secured term loan L + 6.00%  7.01% 4/14/2025  1,161   1,140   1,145   0.61%
SCP ENT and Allergy Services, LLCFirst lien senior secured delayed draw term loan L + 5.50%  6.50% 12/15/2023  1,320   544   555   0.30%
SCP ENT and Allergy Services, LLCFirst lien senior secured revolving loan L + 5.50%  6.50% 9/25/2025  218   82   84   0.05%
SCP ENT and Allergy Services, LLCFirst lien senior secured term loan L + 5.50%  6.50% 9/25/2025  946   928   934   0.50%
Signature Dental Partners LLCFirst lien senior secured delayed draw term loan L + 6.00%  7.00% 10/29/2026  180   62   62   0.03%
Signature Dental Partners LLC (6)
First lien senior secured revolving loan L + 6.00%  7.00% 10/29/2026  38   (1)  (1)  
(0.00
)%
Signature Dental Partners LLCFirst lien senior secured term loan L + 6.00%  7.00% 10/29/2026  867   851   853   0.46%
Silver Falls MSO, LLCFirst lien senior secured revolving loan L + 6.25%  7.25% 8/30/2024  235   232   229   0.12%
Silver Falls MSO, LLCFirst lien senior secured term loan L + 6.25%  7.25% 8/30/2024  1,300   1,284   1,270   0.68%
SimiTree Acquisition LLCFirst lien senior secured delayed draw term loan S + 6.25%  7.25% 12/21/2024  899   869   874   0.47%
SimiTree Acquisition LLC (6)
First lien senior secured revolving loan S+ 6.25%  7.25% 5/17/2026  178   (3)  (2)  
(0.00
)%
SimiTree Acquisition LLCFirst lien senior secured term loan S + 6.25%  7.25% 5/17/2026  1,242   1,221   1,225   0.66%
Southeast Primary Care Partners, LLCFirst lien senior secured delayed draw term loan S + 6.25%  7.25% 12/30/2025  525   290   291   0.16%
Southeast Primary Care Partners, LLCFirst lien senior secured revolving loan S + 6.25%  7.25% 12/30/2025  225   41   41   0.02%
Southeast Primary Care Partners, LLCFirst lien senior secured term loan S + 6.25%  7.25% 12/30/2025  869   852   854   0.46%
Southern Orthodontic Partners Management, LLCFirst lien senior secured delayed draw term loan L + 5.75%  6.76% 1/27/2026  529   517   521   0.28%
Southern Orthodontic Partners Management, LLCFirst lien senior secured delayed draw term loan L + 5.75%  6.76% 1/27/2026  373   365   368   0.20%
Southern Orthodontic Partners Management, LLCFirst lien senior secured revolving loan L + 5.75%  6.76% 1/27/2026  134   85   86   0.05%
Southern Orthodontic Partners Management, LLCFirst lien senior secured term loan L + 5.75%  6.76% 1/27/2026  332   326   327   0.18%
Southern Sports Medicine Partners, LLC (6)
First lien senior secured delayed draw term loan S + 6.00%  7.00% 2/23/2027  171   (3)  (3)  
(0.00
)%
Southern Sports Medicine Partners, LLCFirst lien senior secured revolving loan S + 6.00%  7.00% 2/23/2027  60   14   14   0.01%
Southern Sports Medicine Partners, LLCFirst lien senior secured term loan S + 6.00%  7.00% 2/23/2027  642   633   633   0.34%
Vital Care Buyer, LLCFirst lien senior secured revolving loan P + 4.50%  8.00% 10/19/2025  580   167   167   0.09%
Vital Care Buyer, LLCFirst lien senior secured term loan L + 5.50%  6.51% 10/19/2025  914   902   904   0.48%
Western Veterinary Partners, LLCFirst lien senior secured delayed draw term loan S + 5.75%  6.75% 10/29/2026  334   135   136   0.07%
Western Veterinary Partners, LLC (6)
First lien senior secured revolving loan S + 5.75%  6.75% 10/29/2026  24   0   0   0.00%
Western Veterinary Partners, LLCFirst lien senior secured term loan S + 5.75%  6.75% 10/29/2026  1,023   1,004   1,008   0.54%
                36,694   36,761   19.72%
Health care technology                         
Millennia Patient Services, LLC (6)
First lien senior secured delayed draw term loan L + 6.50%  7.51% 3/8/2026 $267  $(4) $(4)  
(0.00
)%
Millennia Patient Services, LLC (6)
First lien senior secured revolving loan L + 6.50%  7.51% 3/8/2026  134   (2)  (2)  
(0.00
)%
Millennia Patient Services, LLCFirst lien senior secured term loan L + 6.50%  7.51% 3/8/2026  998   982   983   0.53%
Spear Education, LLCFirst lien senior secured revolving loan L + 5.25%  6.25% 2/26/2025  414   53   47   0.03%
Spear Education, LLCFirst lien senior secured term loan L + 5.25%  6.25% 2/26/2025  860   854   843   0.45%
                1,883   1,867   1.00%
Household durables                         
Storm Smart Buyer LLC (6)
First lien senior secured revolving loan L + 6.00%  7.01% 4/5/2026 $131  $(2) $(2)  
(0.00
)%
Storm Smart Buyer LLCFirst lien senior secured term loan L + 6.00%  7.01% 4/5/2026  915   900   901   0.48%
Trademark Global, LLC (6)
First lien senior secured delayed draw term loan L + 6.00%  7.00% 7/30/2024  61   0   0   0.00%
Trademark Global, LLCFirst lien senior secured revolving loan L + 6.00%  7.00% 7/30/2024  113   108   108   0.06%
Trademark Global, LLCFirst lien senior secured term loan L + 6.00%  7.00% 7/30/2024  1,829   1,822   1,826   0.98%
                2,828   2,833   1.52%
Internet and direct marketing retail                         
Aquatic Sales Solutions, LLCFirst lien senior secured revolving loan L + 6.00%  7.00% 12/18/2025 $188  $67  $68   0.04%
Aquatic Sales Solutions, LLCFirst lien senior secured term loan L + 6.00%  7.00% 12/18/2025  2,534   2,491   2,499   1.34%
DealerOn Inc. (6)
First lien senior secured revolving loan S + 5.50%  6.50% 11/19/2024  314   (4)  (2)  
(0.00
)%
DealerOn Inc.First lien senior secured term loan S + 5.50%  6.50% 11/19/2024  1,612   1,591   1,600   0.86%
                4,145   4,165   2.23%
IT services                         
Data Source Intermediate Holdings, LLC (6)
First lien senior secured revolving loan L + 5.50%  6.50% 2/11/2025 $123  $(1) $(1)  
(0.00
)%
Data Source Intermediate Holdings, LLCFirst lien senior secured term loan L + 5.50%  6.50% 2/11/2025  822   812   815   0.44%
E-Phoenix Acquisition Co. Inc. (6)
First lien senior secured revolving loan L + 5.50%  6.51% 6/23/2027  75   (1)  (1)  
(0.00
)%
E-Phoenix Acquisition Co. Inc.First lien senior secured term loan L + 5.50%  6.51% 6/23/2027  1,441   1,425   1,428   0.77%
FreshAddress, LLC (6)
First lien senior secured revolving loan L + 5.50%  6.51% 10/5/2025  30   0   0   0.00%
FreshAddress, LLCFirst lien senior secured term loan L + 5.50%  6.51% 10/5/2025  1,702   1,679   1,682   0.90%
P and R Dental Strategies, LLC (6)
First lien senior secured revolving loan L + 6.50%  7.51% 12/22/2026  23   0   0   0.00%
P and R Dental Strategies, LLCFirst lien senior secured term loan L + 6.50%  7.51% 12/22/2026  658   646   647   0.35%
The Stratix CorporationFirst lien senior secured delayed draw term loan L + 6.00%  7.00% 11/19/2027  75   74   74   0.04%
The Stratix Corporation (6)
First lien senior secured revolving loan L + 6.00%  7.00% 11/19/2027  75   (1)  (1)  
(0.00
)%
The Stratix CorporationFirst lien senior secured term loan L + 6.00%  7.00% 11/19/2027  1,163   1,141   1,143   0.61%
                5,774   5,786   3.10%
Leisure equipment and products                         
MacNeill Pride Group Corp.First lien senior secured delayed draw term loan S + 6.25%  7.25% 4/22/2026 $504  $392  $393   0.21%
MacNeill Pride Group Corp.First lien senior secured revolving loan S + 6.25%  7.25% 4/22/2026  287   127   127   0.07%
MacNeill Pride Group Corp.First lien senior secured term loan S + 6.25%  7.25% 4/22/2026  873   865   868   0.47%
Performance PowerSports Group Purchaser, Inc.First lien senior secured revolving loan S + 5.75%  6.75% 10/8/2026  56   43   43   0.02%
Performance PowerSports Group Purchaser, Inc.First lien senior secured term loan S + 5.75%  6.75% 10/8/2026  1,615   1,584   1,584   0.85%
                3,011   3,015   1.62%
Leisure products                         
Motis Brands, Inc.First lien senior secured delayed draw term loan L + 5.50%  6.50% 8/31/2026 $79  $77  $77   0.04%
Motis Brands, Inc.First lien senior secured revolving loan L + 5.50%  6.50% 8/31/2026  56   47   47   0.03%
Motis Brands, Inc.First lien senior secured term loan L + 5.50%  6.50% 8/31/2026  661   649   650   0.35%
                773   774   0.42%
Life sciences tools and services                         
Aptitude Health Holdings, LLC (6)
First lien senior secured revolving loan L + 5.25%  6.26% 5/3/2026 $267  $(4) $(4)  
(0.00
)%
Aptitude Health Holdings, LLCFirst lien senior secured term loan L + 5.25%  6.26% 5/3/2026  1,112   1,092   1,095   0.59%
                1,088   1,091   0.59%
(Unaudited)


 
 
Company(1)(2)
 
 
 
Investment
 
Interest
Rate

 
Maturity
Date
 
Principal/
Par Amount(3)
  
Amortized
Cost(4)
  
Fair Value
  
Percentage
of Net
Assets
 
Investments - Continued    
             
Non-controlled/non-affiliated senior secured debt (5) - Continued    
             
Household durables    
             
Storm Smart Buyer LLC (13) First lien senior secured revolving loan L+6.00%
4/5/2026 $131  $(2) $(2)  (0.00)%
Storm Smart Buyer LLC (8)(9) First lien senior secured term loan L+6.00%
4/5/2026  919   902   904   0.72%
Trademark Global, LLC (13) First lien senior secured delayed draw term loan L+6.00%
7/30/2024  61   -   -   0.00%
Trademark Global, LLC (6) First lien senior secured revolving loan L+6.00%
7/30/2024  113   62   62   0.05%
Trademark Global, LLC (6) First lien senior secured term loan L+6.00%
7/30/2024  1,838   1,830   1,829   1.46%
     
       2,792   2,793   2.23%
Internet and direct marketing retail    
                 
Aquatic Sales Solutions, LLC (8) First lien senior secured revolving loan L+5.50%
12/18/2025 $150  $110  $110   0.09%
Aquatic Sales Solutions, LLC (8) First lien senior secured term loan L+5.50%
12/18/2025  1,364   1,339   1,342   1.07%
DealerOn Inc. (13) First lien senior secured revolving loan L+5.50%
11/19/2024  314   (4)  (3)  (0.00)%
DealerOn Inc. (9) First lien senior secured term loan L+5.50%
11/19/2024  1,618   1,593   1,603   1.28%
     
       3,038   3,052   2.43%
IT services    
                 
Data Source Intermediate Holdings, LLC (13) First lien senior secured revolving loan L+5.50%
2/11/2025 $123  $(2) $(2)  (0.00)%
Data Source Intermediate Holdings, LLC (8) First lien senior secured term loan L+5.50%
2/11/2025  826   815   816   0.65%
E-Phoenix Acquisition Co. Inc.  (13) First lien senior secured revolving loan L+5.75%
6/23/2027  75   (1)  (1)  (0.00)%
E-Phoenix Acquisition Co. Inc.  (8) First lien senior secured term loan L+5.75%
6/23/2027  1,448   1,431   1,434   1.14%
Legility, LLC (13) First lien senior secured revolving loan L+6.00%
12/17/2024  123   (2)  (1)  (0.00)%
Legility, LLC (6)(8) First lien senior secured term loan L+6.00%
12/17/2025  706   695   698   0.56%
Library Associates, LLC (13) First lien senior secured revolving loan L+7.00%
8/13/2023  127   (2)  (2)  (0.00)%
Library Associates, LLC (8) First lien senior secured term loan L+7.00%
8/13/2023  355   349   349   0.28%
     
       3,283   3,291   2.62%
Leisure equipment and products    
                 
MacNeill Pride Group Corp. (8) First lien senior secured delayed draw term loan L+6.50%
4/22/2026 $393  $258  $259   0.21%
MacNeill Pride Group Corp. (8) First lien senior secured revolving loan L+6.50%
4/22/2026  262   172   173   0.14%
MacNeill Pride Group Corp. (8) First lien senior secured term loan L+6.50%
4/22/2026  878   870   872   0.70%
Motis Brands, Inc. (13) First lien senior secured delayed draw term loan L+5.50%
8/31/2026  79   (2)  (2)  (0.00)%
Motis Brands, Inc. (8) First lien senior secured revolving loan L+5.50%
8/31/2026  9   8   8   0.01%
Motis Brands, Inc. (12) First lien senior secured revolving loan P+4.50%
8/31/2026  11   11   11   0.01%
Motis Brands, Inc. (8) First lien senior secured term loan L+5.50%
8/31/2026  598   586   586   0.47%
     
       1,903   1,907   1.52%
Life sciences tools and services    
                 
Aptitude Health Holdings, LLC (8) First lien senior secured revolving loan L+5.25%
5/3/2026 $267  $22  $22   0.02%
Aptitude Health Holdings, LLC (8) First lien senior secured term loan L+5.25%
5/3/2026  1,117   1,096   1,098   0.88%
     
       1,118   1,120   0.89%
Machinery    
                 
Abrasive Technology Intermediate, LLC (13) First lien senior secured revolving loan L+6.25%
4/30/2026 $173  $(3) $(3)  (0.00)%
Abrasive Technology Intermediate, LLC (9) First lien senior secured term loan L+6.25%
4/30/2026  947   929   931   0.74%
Industrial Dynamics Company, Ltd. (13)(16) First lien senior secured revolving loan L+6.00%
8/20/2024  141   (2)  (2)  (0.00)%
Industrial Dynamics Company, Ltd. (8) First lien senior secured term loan L+6.00%
8/20/2024  896   884   882   0.70%
     
       1,808   1,808   1.44%
Media    
                 
ALM Media, LLC (6)(18) First lien senior secured revolving loan L+6.50%
11/25/2024 $971  $83  $82   0.07%
ALM Media, LLC (8) First lien senior secured term loan L+6.50%
11/25/2024  2,653   2,610   2,611   2.08%
     
       2,693   2,693   2.15%
Metals and mining    
                 
Copperweld Group, Inc. (8)(7) First lien senior secured revolving loan L+5.50%
9/27/2024 $456  $221  $221   0.18%
Copperweld Group, Inc. (8) First lien senior secured term loan L+5.50%
9/27/2024  2,163   2,126   2,128   1.70%
     
       2,347   2,349   1.87%
Personal products    
                 
Cosmetic Solutions, LLC (13) First lien senior secured delayed draw term loan L+5.75%
10/17/2025 $366  $(5) $(5)  (0.00)%
Cosmetic Solutions, LLC (13) First lien senior secured revolving loan L+5.75%
10/17/2025  344   (5)  (5)  (0.00)%
Cosmetic Solutions, LLC (9) First lien senior secured term loan L+5.75%
10/17/2025  2,775   2,732   2,736   2.18%
     
       2,722   2,726   2.17%
Pharmaceuticals    
                 
Bio Agri Mix Holdings Inc. (13)(14) First lien senior secured revolving loan C+6.50%
7/23/2026 $105  $(2) $(2)  (0.00)%
Bio Agri Mix Holdings Inc. (11)(14) First lien senior secured term loan C+6.50%
7/23/2026  1,260   983   975   0.78%
Bio Agri Mix Holdings Inc. (13)(14) First lien senior secured revolving loan C+6.50%
7/23/2026  105   (2)  (2)  (0.00)%
Formulated Buyer, LLC (13) First lien senior secured delayed draw term loan L+5.25%
9/22/2026  300   (6)  (6)  (0.00)%
Formulated Buyer, LLC (13) First lien senior secured revolving loan L+5.25%
9/22/2026  188   (4)  (4)  (0.00)%
Formulated Buyer, LLC (8) First lien senior secured term loan L+5.25%
9/22/2026  1,244   1,219   1,219   0.97%
     
       2,188   2,180   1.74%
Real estate management and development    
                 
BBG Intermediate Holdings, Inc. (8)(19) First lien senior secured revolving loan L+6.00%
1/8/2026 $210  $41  $42   0.03%
BBG Intermediate Holdings, Inc. (8) First lien senior secured term loan L+6.00%
1/8/2026  1,671   1,642   1,644   1.31%
     
       1,683   1,686   1.34%
Semiconductors and semiconductor equipment    
                 
Altamira Material Solutions, LP (12) First lien senior secured revolving loan P+4.50%
9/2/2026 $38  $5  $5   0.00%
Altamira Material Solutions, LP (8) First lien senior secured term loan L+5.50%
9/2/2026  333   326   326   0.26%
     
       331   331   0.26%
Software    
                 
Affinitiv, Inc. (13) First lien senior secured revolving loan L+6.00%
8/26/2024 $248  $(2) $(1)  (0.00)%
Affinitiv, Inc. (8) First lien senior secured term loan L+6.00%
8/26/2024  2,328   2,300   2,317   1.85%
ShiftKey, LLC (6) First lien senior secured revolving loan L+6.00%
3/17/2026  187   91   91   0.07%
ShiftKey, LLC (8) First lien senior secured term loan L+6.00%
3/17/2026  938   925   927   0.74%
     
       3,314   3,334   2.66%
Specialty retail    
                 
Leonard Group, Inc. (13) First lien senior secured revolving loan L+6.00%
2/26/2026 $197  $(3) $(3)  (0.00)%
Leonard Group, Inc. (8)(10) First lien senior secured term loan L+6.00%
2/26/2026  1,259   1,236   1,238   0.99%
     
       1,233   1,235   0.98%
Textiles, apparel and luxury goods    
                 
Lakeshirts LLC (13) First lien senior secured delayed draw term loan L+4.75%
12/23/2025 $398  $(5) $(7)  (0.01)%
Lakeshirts LLC (8) First lien senior secured revolving loan L+4.75%
12/23/2024  398   128   128   0.10%
Lakeshirts LLC (8) First lien senior secured term loan L+4.75%
12/23/2024  1,569   1,550   1,542   1.23%
     
       1,673   1,663   1.33%







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



8


AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of September 30, 2021March 31, 2022
  (Unaudited)
(Amounts in thousands)
(Unaudited)

Company(1)(2) 
 
 
Investment
 
 
Interest
Rate

 
Maturity
Date
 
 
Principal/
Par Amount(3)
  
 
Amortized
Cost(4)
  
 
 
Fair Value
  
Percentage
of Net
Assets
 
Investments - Continued    
             
Non-controlled/non-affiliated senior secured debt (5) - Continued
    
             
Trading companies and distributor                  
AFC Industries, Inc. (8)(9) First lien senior secured delayed draw term loan L+6.25%
4/9/2027 
$
356
  $169  $170   0.14%
AFC Industries, Inc. (9)(20) First lien senior secured revolving loan L+6.25%
10/9/2026  34   33   33   0.03 %
AFC Industries, Inc. (12)(20) First lien senior secured revolving loan P+5.25%
10/9/2026  28   28   28   0.02 %
AFC Industries, Inc. (9) First lien senior secured term loan L+6.25%
4/9/2027  690   680   681   0.54 %
Banner Buyer, LLC (6) First lien senior secured delayed draw term loan L+5.75%
10/31/2025  1,045   565   571   0.46 %
Banner Buyer, LLC (6) First lien senior secured revolving loan L+5.75%
10/31/2025  370   20   22   0.02 %
Banner Buyer, LLC (6) First lien senior secured term loan L+5.75%
10/31/2025  1,389   1,370   1,378   1.10 %
Empire Equipment Company, LLC (13) First lien senior secured delayed draw term loan L+5.50%
1/17/2025  941   (14)  (28)  (0.02) %
Empire Equipment Company, LLC (13) First lien senior secured revolving loan L+5.50%
1/17/2025  439   (7)  (13)  (0.01) %
Empire Equipment Company, LLC (9) First lien senior secured term loan L+5.50%
1/17/2025  1,291   1,270   1,250   1.00 %
Montway LLC (13) First lien senior secured delayed draw term loan L+6.25%
11/4/2025  675   (12)  (12)  (0.01)%
Montway LLC (13) First lien senior secured revolving loan L+6.25%
11/4/2025  150   (3)  (3)  (0.00)%
Montway LLC (8) First lien senior secured term loan L+6.25%
11/4/2025  725   711   712   0.57%
Shearer Supply, LLC (13) First lien senior secured revolving loan L+5.50%
9/17/2027  113   (2)  (2)  (0.00)%
Shearer Supply, LLC (8) First lien senior secured term loan L+5.50%
9/17/2027  813   796   796   0.63 %
Triad Technologies, LLC (13) First lien senior secured revolving loan L+4.75%
10/31/2025  314   (4)  (3)  (0.00)%
Triad Technologies, LLC (9) First lien senior secured term loan L+4.75%
10/31/2025  943   930   934   0.74%
     
       6,530   6,514   5.19%
Water utilities    
                 
Diamondback Buyer, LLC (7) First lien senior secured revolving loan L+5.50%
7/22/2026 
$
75
  $6  $6   0.00%
Diamondback Buyer, LLC (8)(9) First lien senior secured term loan L+5.50%
7/22/2026  857   840   844   0.67%
     
       846   850   0.68%
Total non-controlled/non-affiliated senior secured debt    
      $105,693  $105,645   84.24 %
     
                 
Non-controlled/non-affiliated sponsor subordinated note    
                 
Trading companies and distributors    
                 
Empire Equipment Company, LLC Sponsor subordinated note 12.50% + 7.00% PIK
7/17/2025     $10  $10   0.01%
Shearer Supply, LLC Sponsor subordinated note 12.50% + 7.00% PIK
3/17/2028      5   5   0.00 %
Total non-controlled/non-affiliated sponsor subordinated note    
       15   15   0.01 %
Total non-controlled/non-affiliated investments    
      $105,708  $105,660   84.25 %
     
                 
Non-controlled/affiliated investments    
                 
Multisector holdings    
                 
Twin Brook Equity Holdings, LLC (23) Equity - 1.84% membership interest  
      $4,444  $5,736   4.57 %
Total non-controlled/affiliated investments    
      $4,444  $5,736   4.57 %
Total investments    
      $110,152  $111,396   88.82 %


Company(1)(2)
Investment 
Reference
Rate
and Spread
 
Interest
Rate
  Maturity Date 
Principal/
Par Amount(3)
  
Amortized
Cost(4)
  
Fair
Value
  
Percentage of
Net Assets
 
Investments                    
Non-controlled/non-affiliated senior secured debt (5) - Continued
                    
Machinery                    
Abrasive Technology Intermediate, LLCFirst lien senior secured revolving loan L + 5.75%  6.75% 4/30/2026 $173  $14  $15   0.01%
Abrasive Technology Intermediate, LLCFirst lien senior secured term loan L + 5.75%  6.75% 4/30/2026  942   927   928   0.50%
DNS IMI Acquisition Corp (6)
First lien senior secured delayed draw term loan L + 5.50%  6.51% 11/23/2026  75   (1)  (1)  
(0.00
)%
DNS IMI Acquisition CorpFirst lien senior secured revolving loan L + 5.50%  6.51% 11/23/2026  56   6   6   0.00%
DNS IMI Acquisition CorpFirst lien senior secured term loan L + 5.50%  6.51% 11/23/2026  1,661   1,630   1,633   0.88%
Industrial Dynamics Company, Ltd. (6)(9)
First lien senior secured revolving loan L + 6.00%  7.25% 8/20/2024  141   (2)  (2)  
(0.00
)%
Industrial Dynamics Company, Ltd.First lien senior secured term loan L + 6.00%  7.25% 8/20/2024  892   881   879   0.47%
                3,455   3,458   1.85%
Media                         
ALM Media, LLC (6)(8)
First lien senior secured revolving loan L + 6.50%  7.51% 11/25/2024 $971  $(12) $(12)  (0.01)%
ALM Media, LLCFirst lien senior secured term loan L + 6.50%  7.51% 11/25/2024  2,580   2,544   2,546   1.37%
Exclusive Concepts, LLC (6)
First lien senior secured delayed draw term loan L + 6.00%  7.00% 12/9/2026  225   (4)  (4)  
(0.00
)%
Exclusive Concepts, LLC (6)
First lien senior secured revolving loan L + 6.00%  7.00% 12/9/2026  23   0   0   0.00%
Exclusive Concepts, LLCFirst lien senior secured term loan L + 6.00%  7.00% 12/9/2026  631   619   620   0.33%
Infolinks Media Buyco, LLC (6)
First lien senior secured delayed draw term loan L + 6.00%  7.01% 11/1/2026  39   0   0   0.00%
Infolinks Media Buyco, LLC (6)
First lien senior secured revolving loan L + 6.00%  7.01% 11/1/2026  38   (1)  (1)  
(0.00
)%
Infolinks Media Buyco, LLCFirst lien senior secured term loan L + 6.00%  7.01% 11/1/2026  1,161   1,140   1,142   0.61%
The Channel Company, LLC (6)
First lien senior secured revolving loan S + 5.25%  6.25% 11/1/2027  62   (1)  (1)  
(0.00
)%
The Channel Company, LLCFirst lien senior secured term loan S + 5.25%  6.25% 11/1/2027  1,894   1,862   1,866   1.00%
                6,147   6,156   3.30%
Metals and mining                         
Copperweld Group, Inc. (6)
First lien senior secured revolving loan S + 5.50%  6.50% 9/27/2024 $493  $(8) $(7)  
(0.00
)%
Copperweld Group, Inc.First lien senior secured term loan S + 5.50%  6.50% 9/27/2024  2,683   2,637   2,642   1.42%
                2,629   2,635   1.41%
Personal products                         
Cosmetic Solutions, LLCFirst lien senior secured delayed draw term loan L + 5.75%  6.75% 10/17/2025 $366  $362  $362   0.19%
Cosmetic Solutions, LLC (6)
First lien senior secured revolving loan L + 5.75%  6.75% 10/17/2025  344   (4)  (4)  
(0.00
)%
Cosmetic Solutions, LLCFirst lien senior secured term loan L + 5.75%  6.75% 10/17/2025  2,775   2,736   2,743   1.47%
                3,094   3,101   1.66%
Pharmaceuticals                         
Bio Agri Mix Holdings Inc. (6)(7)
First lien senior secured revolving loan C + 6.50%  7.73% 7/23/2026 $30  $(1) $0   0.00%
Bio Agri Mix Holdings Inc. (7)
First lien senior secured term loan C + 6.50%  7.73% 7/23/2026 C$1,254   979   987   0.53%
Bio Agri Mix Holdings Inc. (6)(7)
First lien senior secured revolving loan C + 6.50%  7.73% 7/23/2026 C$38   (1)  (1)  
(0.00
)%
Formulated Buyer, LLCFirst lien senior secured delayed draw term loan L + 5.50%  6.50% 9/22/2026  300   24   25   0.01%
Formulated Buyer, LLCFirst lien senior secured revolving loan L + 5.50%  6.50% 9/22/2026  188   64   64   0.03%
Formulated Buyer, LLCFirst lien senior secured term loan L + 5.50%  6.50% 9/22/2026  464   456   456   0.24%
Maxor National Pharmacy Services, LLC (6)
First lien senior secured revolving loan L + 5.50%  6.51% 12/6/2027  84   (2)  (1)  
(0.00
)%
Maxor National Pharmacy Services, LLCFirst lien senior secured term loan L + 5.50%  6.51% 12/6/2027  1,807   1,777   1,776   0.95%
                3,296   3,306   1.77%
Professional services                         
Stax Holding Company, LLC (6)
First lien senior secured revolving loan L + 5.25%  6.26% 10/29/2026 $60  $(1) $(1)  
(0.00
)%
Stax Holding Company, LLCFirst lien senior secured term loan L + 5.25%  6.26% 10/29/2026  823   812   814   0.44%
                811   813   0.44%
Real estate management and development                         
BBG Intermediate Holdings, Inc. (12)
First lien senior secured revolving loan S + 6.50%  7.50% 1/8/2026 $233  $0  $1   0.00%
BBG Intermediate Holdings, Inc.First lien senior secured term loan S + 6.50%  7.50% 1/8/2026  1,769   1,738   1,748   0.94%
                1,738   1,749   0.94%
Semiconductors and semiconductor equipment                         
Altamira Material Solutions, LPFirst lien senior secured revolving loan P + 4.50%  8.00% 9/2/2026 $45  $4  $4   0.00%
Altamira Material Solutions, LPFirst lien senior secured term loan L + 5.50%  6.51% 9/2/2026  727   714   715   0.38%
                718   719   0.39%
Software                         
Affinitiv, Inc. (6)
First lien senior secured revolving loan S + 6.50%  7.50% 8/26/2024 $248  $(3) $(2)  
(0.00
)%
Affinitiv, Inc.First lien senior secured term loan S + 6.50%  7.50% 8/26/2024  2,265   2,237   2,251   1.21%
ShiftKey, LLC (6)
First lien senior secured revolving loan L + 6.00%  7.01% 3/17/2026  241   (3)  (3)  
(0.00
)%
ShiftKey, LLCFirst lien senior secured term loan L + 6.00%  7.01% 3/17/2026  933   922   922   0.49%
                3,153   3,168   1.70%
Specialty retail                         
Dykstra’s Auto, LLCFirst lien senior secured delayed draw term loan L + 5.50%  6.51% 10/22/2026 $187  $70  $70   0.04%
Dykstra’s Auto, LLC (6)
First lien senior secured revolving loan P + 4.25%  7.50% 10/22/2026  38   (1)  (1)  
(0.00
)%
Dykstra’s Auto, LLCFirst lien senior secured term loan L + 5.50%  6.51% 10/22/2026  495   486   487   0.26%
Kaizen Auto Care, LLCFirst lien senior secured delayed draw term loan L + 6.00%  7.00% 12/22/2023  225   148   148   0.08%
Kaizen Auto Care, LLCFirst lien senior secured revolving loan L + 6.00%  7.00% 12/22/2026  38   11   11   0.01%
Kaizen Auto Care, LLCFirst lien senior secured term loan L + 6.00%  7.00% 12/22/2026  778   763   765   0.41%
Leonard Group, Inc.First lien senior secured revolving loan L + 6.00%  7.00% 2/26/2026  197   128   128   0.07%
Leonard Group, Inc.First lien senior secured term loan L + 6.00%  7.00% 2/26/2026  1,252   1,232   1,234   0.66%
Pink Lily Holdings, LLCFirst lien senior secured revolving loan L + 6.50%  7.50% 11/16/2027  63   24   24   0.01%
Pink Lily Holdings, LLCFirst lien senior secured term loan L + 6.50%  7.50% 11/16/2027  1,367   1,345   1,348   0.72%
                4,206   4,214   2.26%
Textiles, apparel and luxury goods                         
Lakeshirts LLCFirst lien senior secured revolving loan S + 4.75%  5.75% 12/23/2024 $398  $315  $314   0.17%
Lakeshirts LLCFirst lien senior secured term loan S + 4.75%  5.75% 12/23/2025  1,671   1,652   1,648   0.88%
                1,967   1,962   1.05%
Trading companies and distributors                         
AFC Industries, Inc.First lien senior secured delayed draw term loan L + 6.25%  7.25% 12/20/2023 $354  $350  $351   0.19%
AFC Industries, Inc.First lien senior secured delayed draw term loan L + 6.25%  7.25% 12/20/2023  129   7   7   0.00%
AFC Industries, Inc. (13)
First lien senior secured revolving loan L + 6.25%  7.25% 10/9/2026  131   113   113   0.06%
AFC Industries, Inc.First lien senior secured term loan L + 6.25%  7.25% 4/9/2027  746   737   739   0.40%
Banner Buyer, LLCFirst lien senior secured delayed draw term loan L + 5.75%  6.75% 10/31/2025  1,042   563   572   0.31%
Banner Buyer, LLCFirst lien senior secured revolving loan L + 5.75%  6.75% 10/31/2025  370   119   121   0.06%
Banner Buyer, LLCFirst lien senior secured term loan L + 5.75%  6.75% 10/31/2025  1,382   1,366   1,372   0.74%
Empire Equipment Company, LLCFirst lien senior secured revolving loan S + 5.50%  6.50% 1/17/2025  439   151   150   0.08%
Empire Equipment Company, LLCFirst lien senior secured term loan S + 5.50%  6.50% 1/17/2025  1,472   1,451   1,451   0.78%
Montway LLC (6)
First lien senior secured delayed draw term loan L + 6.25%  7.26% 11/4/2025  675   (11)  (10)  (0.01)%
Montway LLC (6)
First lien senior secured revolving loan L + 6.25%  7.26% 11/4/2025  150   (2)  (2)  
(0.00
)%
Montway LLCFirst lien senior secured term loan L + 6.25%  7.26% 11/4/2025  721   709   710   0.38%
Shearer Supply, LLCFirst lien senior secured revolving loan S + 5.50%  6.50% 9/17/2027  113   44   44   0.02%
Shearer Supply, LLCFirst lien senior secured term loan S + 5.50%  6.50% 9/17/2027  929   911   914   0.49%
Triad Technologies, LLC (6)
First lien senior secured revolving loan L + 4.75%  5.75% 10/31/2025  314   (4)  (3)  
(0.00
)%
Triad Technologies, LLCFirst lien senior secured term loan L + 4.75%  5.75% 10/31/2025  938   926   929   0.50%
                7,430   7,458   4.00%
Water utilities                         
Diamondback Buyer, LLC (6)
First lien senior secured revolving loan L + 5.50%  6.51% 7/22/2026 $75  $(1) $(1)  
(0.00
)%
Diamondback Buyer, LLCFirst lien senior secured term loan L + 5.50%  6.51% 7/22/2026  853   837   841   0.45%
                836   840   0.45%
Total non-controlled/non-affiliated senior secured debt              $153,473  $153,712   82.44%
(1) Unless otherwise indicated, all investments are considered Level 3 investments.
(2) Unless otherwise indicated, all investments represent co-investments made with the Company’s affiliates in accordance with the terms of the exemptive relief that the Company received from the U.S. Securities and Exchange Commission.  Refer to Note 6 for further information.
(3) Principal/par amount is denominated in U.S. Dollars (“$”) unless otherwise noted, Canadian Dollars (“C$”).
(4) The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.
(5) Unless otherwise indicated, the interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g. prime rate), which typically resets semiannually, quarterly, or monthly at the borrower’s option. The applicable base rate may be subject to a floor. The borrower may also elect to have multiple interest reset periods for each loan.  For each of these loans, we have provided the applicable margin over LIBOR based on each respective credit agreement.
(6) The interest rate on these loans is subject to 1 month LIBOR, which as of September 30, 2021 was 0.08%.
(7) The interest rate on these loans is subject to 2 month LIBOR, which as of September 30, 2021 was 0.11%.
(8) The interest rate on these loans is subject to 3 month LIBOR, which as of September 30, 2021 was 0.13%.
(9) The interest rate on these loans is subject to 6 month LIBOR, which as of September 30, 2021 was 0.16%.
(10) The interest rate on these loans is subject to 12 month LIBOR, which as of September 30, 2021 was 0.24%.
(11) The interest rate on these loans is subject to 3 Month CDOR, which as of September 30, 2021 was 0.45%.
(12) The interest rate on these loans is subject to the Prime Rate, which as of September 30, 2021 was 3.25%.
(13) Represents revolvers and delayed draw term loans where the entire balance is unfunded as of September 30, 2021.  The negative fair value is a result of the commitment being valued below par.  Refer to Note 8 for further information.
(14) Represents investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. The status of these assets under the 1940 Act is subject to change. The Company monitors the status of these assets on an ongoing basis. As of September 30, 2021, non-qualifying assets represented approximately 3.38% of the total assets of the Company.
(15) Principal balance includes reserve for letter of credit of $2,834 on which the borrower pays 5.50%.
(16) Principal balance includes reserve for letter of credit of $13,826 on which the borrower pays 6.00%.
(17) Principal balance includes reserve for letter of credit of $10,663 on which the borrower pays 7.50%.
(18) Principal balance includes reserve for letter of credit of $141,677 on which the borrower pays 0.00%.
(19) Principal balance includes reserve for letter of credit of $4,538 on which the borrower pays 6.00%.
(20) Principal balance includes reserve for letter of credit of $4,978 on which the borrower pays 6.25%.
(21) Principal balance includes reserve for letter of credit of $5,410 on which the borrower pays 6.25%.
(22) Principal balance includes reserve for letter of credit of $4,152 on which the borrower pays 6.50%.
(23) As a practical expedient, the Company uses net asset value (“NAV”) to determine the fair value of this investment. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels.  This represents an investment in an affiliated fund.





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



9

AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of September 30, 2021
(Amounts in thousands)
(Unaudited)


Additional Information

Foreign currency forward contracts         
Counterparty Currency Purchased Currency Sold Settlement 
Unrealized Appreciation/
(Depreciation)
 
Wells Fargo Bank, National Association  USD 410 CAD 505 6/27/2022 $12 
Wells Fargo Bank, National Association  USD 65 CAD 80 6/27/2022  2 
Wells Fargo Bank, National Association  USD 32 CAD 41 10/22/2021  - 
Wells Fargo Bank, National Association  USD 2,098 CAD 2,675 10/21/2021  (14)
Wells Fargo Bank, National Association  CAD 823 USD 646 10/21/2021  4 
Wells Fargo Bank, National Association  CAD 520 USD 405 10/21/2021  5 
Wells Fargo Bank, National Association CAD 86 USD 68 10/21/2021  (1)
Total           $8 

Currency Abbreviations:
USD - U.S. Dollar
CAD - Canadian Dollar






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

109
AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of DecemberMarch 31, 20202022
  (Unaudited)
(Amounts in thousands)

Company(1)(2)
Investment
Reference Rate
and Spread
 
Interest
Rate
Maturity Date 
Principal/
Par Amount(3)
  
Amortized
 Cost(4)
  
Fair
Value
  
Percentage of
Net Assets
Investments                     
Non-controlled/non-affiliated sponsor subordinated notes                     
Trading companies and distributors                     
Empire Equipment Company, LLCSponsor subordinated note12.50% + 7.00% PIK  19.50%7/17/2025     $11  $11   0.01%
Shearer Supply, LLCSponsor subordinated note12.50% + 7.00% PIK  19.50%3/17/2028      5   5   0.00%
Total non-controlled/non-affiliated sponsor subordinated notes            16   16   0.01%
Total non-controlled/non-affiliated investments           $153,489  $153,728   82.45%
                      
Non-controlled/affiliated investments                     
Multisector holdings                     
Twin Brook Equity Holdings, LLC (18)
Equity - 2.10% membership interest          $6,426  $8,447   4.53%
Twin Brook Segregated Equity Holdings, LLC (18)
Equity - 2.11% membership interest           14   18   0.01%
Total non-controlled/affiliated investments           $6,440  $8,465   4.54%
Total investments           $159,929  $162,193   86.99%


Company(1)(2) Investment  Interest Rate Maturity Date Principal/ Par Amount  Amortized Cost(3)  Fair Value  Percentage of Net Assets 
Investments                  
Non-controlled/non-affiliated senior secured debt (4)                  
Aerospace and defense                  
Mattco Forge, Inc. (11) First lien senior secured revolving loan L+5.25% 12/6/2024 $506  $(8) $(19)  (0.02)%
Mattco Forge, Inc. (8) First lien senior secured term loan L+5.25% 12/6/2024  2,213   2,177   2,133   2.40%
         2,719   2,169   2,114   2.38%
Auto components                      
Continental Battery Company (5) First lien senior secured term loan L+6.75% 12/14/2022 $1,172  $1,149  $1,157   1.31%
         1,172   1,149   1,157   1.31%
Chemicals                      
AM Buyer, LLC (7) First lien senior secured revolving loan L+6.75% 5/1/2025 $111  $–  $1   0.00%
AM Buyer, LLC (7) First lien senior secured term loan L+6.75% 5/1/2025  498   487   489   0.55%
G2O Technologies, LLC (11) First lien senior secured revolving loan L+6.50% 3/31/2025  207   (4)  (4)  (0.00)%
G2O Technologies, LLC (7) First lien senior secured term loan L+6.50% 3/31/2025  1,577   1,546   1,550   1.75%
Revolution Plastics Buyer, LLC (5) First lien senior secured revolving loan L+5.00% 8/15/2025  704   200   202   0.23%
Revolution Plastics Buyer, LLC (5)(7) First lien senior secured term loan L+5.00% 8/15/2025  2,676   2,627   2,642   2.99%
Teel Plastics, LLC (11) First lien senior secured revolving loan L+5.00% 1/24/2025  324   (5)  (6)  (0.01)%
Teel Plastics, LLC (5) First lien senior secured term loan L+5.00% 1/24/2025  1,861   1,830   1,825   2.06%
         7,958   6,681   6,699   7.57%
Commercial services and supplies                      
BRTS Holdings, LLC (7) First lien senior secured delayed draw term loan L+5.75% 9/6/2022 $175  $127  $127   0.14%
BRTS Holdings, LLC (7)(13) First lien senior secured revolving loan L+5.75% 9/6/2022  588   290   290   0.33%
BRTS Holdings, LLC (7) First lien senior secured term loan L+5.75% 9/6/2022  3,125   3,105   3,106   3.51%
Nimlok Company, LLC (7)(15) First lien senior secured revolving loan L+6.00% 11/27/2025  320   305   288   0.33%
Nimlok Company, LLC (7) First lien senior secured term loan L+6.00% 11/27/2025  1,927   1,902   1,773   2.00%
         6,135   5,729   5,582   6.31%
Containers and packaging                      
Innovative FlexPak, LLC (11) First lien senior secured revolving loan L+6.75% 1/23/2025 $627  $(10) $(9)  (0.01)%
Innovative FlexPak, LLC (8) First lien senior secured term loan L+6.75% 1/23/2025  2,407   2,366   2,374   2.67%
Jansy Packaging, LLC (5) First lien senior secured revolving loan L+7.00% 9/30/2022  706   17   (4)  (0.00)%
Jansy Packaging, LLC (5) First lien senior secured term loan L+7.00% 9/30/2022  1,101   1,081   1,050   1.19%
MRC Keeler Acquisition, LLC (11) First lien senior secured delayed draw term loan L+5.75% 12/4/2025  150   (3)  (3)  (0.00)%
MRC Keeler Acquisition, LLC (11) First lien senior secured revolving loan L+5.75% 12/4/2025  150   (3)  (3)  (0.00)%
MRC Keeler Acquisition, LLC (7) First lien senior secured term loan L+5.75% 12/4/2025  976   957   956   1.08%
Vanguard Packaging, LLC (11) First lien senior secured revolving loan L+5.25% 8/9/2024  535   (6)  (8)  (0.01)%
Vanguard Packaging, LLC (8) First lien senior secured term loan L+5.25% 8/9/2024  1,225   1,211   1,206   1.36%
         7,877   5,610   5,559   6.28%
Diversified consumer services                      
50Floor, LLC (11) First lien senior secured revolving loan L+6.25% 12/31/2025 $199  $(4) $(4)  (0.00)%
50Floor, LLC (7) First lien senior secured term loan L+6.25% 12/31/2026  990   970   970   1.10%
Groundworks Operations, LLC (7) First lien senior secured delayed draw term loan L+6.25% 1/17/2026  1,632   1,257   1,258   1.42%
Groundworks Operations, LLC (11) First lien senior secured revolving loan L+6.25% 1/17/2026  387   (5)  (5)  (0.01)%
Groundworks Operations, LLC (7) First lien senior secured term loan L+6.25% 1/17/2026  2,384   2,350   2,351   2.65%
Kalkomey Enterprises, LLC (11) First lien senior secured revolving loan L+6.50% 4/24/2025  77   (2)  (1)  (0.00)%
Kalkomey Enterprises, LLC (7) First lien senior secured term loan L+6.50% 4/24/2026  838   818   822   0.93%
NSG Buyer, Inc. (11) First lien senior secured revolving loan L+5.75% 9/30/2024  294   (2)  (3)  (0.00)%
NSG Buyer, Inc. (5) First lien senior secured term loan L+5.75% 9/30/2025  2,465   2,444   2,429   2.74%
         9,266   7,826   7,817   8.83%
Electronic equipment, instruments and components                      
Advanced Lighting Acquisition, LLC (5) First lien senior secured revolving loan L+6.00% 11/22/2025 $324  $157  $151   0.17%
Advanced Lighting Acquisition, LLC (5) First lien senior secured term loan L+6.00% 11/22/2025  1,450   1,429   1,404   1.59%
         1,774   1,586   1,555   1.76%
Food and staples retailing                      
Engelman Baking Co., LLC (7) First lien senior secured revolving loan L+5.75% 2/28/2025 $207  $47  $37   0.04%
Engelman Baking Co., LLC (5)(7) First lien senior secured term loan L+5.75% 2/28/2025  728   715   682   0.77%
         935   762   719   0.81%
Food products                      
Perimeter Brands Intermediate Holdco LLC (11) First lien senior secured revolving loan L+5.50% 12/11/2025 $210  $(4) $(4)  (0.00)%
Perimeter Brands Intermediate Holdco LLC (6) First lien senior secured term loan L+5.50% 12/11/2025  1,025   1,004   1,004   1.13%
         1,235   1,000   1,000   1.13%
Gas utilities                      
Hydromax USA, LLC (11) First lien senior secured delayed draw term loan L+6.25% 12/30/2026 $114  $(2) $(2)  (0.00)%
Hydromax USA, LLC (10) First lien senior secured revolving loan L+6.25% 12/30/2026  228   7   7   0.01%
Hydromax USA, LLC (5) First lien senior secured term loan L+6.25% 12/30/2026  1,259   1,237   1,237   1.40%
         1,601   1,242   1,242   1.41%


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


11
AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of December 31, 2020
(Amounts in thousands)


Company(1)(2) Investment 
 
Interest Rate
 Maturity Date Principal/ Par Amount  Amortized Cost(3)  Fair Value  Percentage of Net Assets 
Investments - Continued                      
Non-controlled/non-affiliated senior secured debt (4) - Continued                      
Health care equipment and supplies                      
Reliable Medical Supply LLC (11) First lien senior secured revolving loan L+6.00% 4/8/2025 $138  $(2) $(2)  (0.00)%
Reliable Medical Supply LLC (8) First lien senior secured term loan L+6.00% 4/8/2025  622   611   612   0.69%
         760   609   610   0.69%
Health care providers and services                      
 Anne Arundel Dermatology Management, LLC (7) First lien senior secured delayed draw term loan  L+6.00%  10/16/2025 $779
   $217
   $217
   0.25
%
 Anne Arundel Dermatology Management, LLC (11) First lien senior secured revolving loan  L+6.00%  10/16/2025  234
   (4
)
  (4
)
  (0.00
)%
 Anne Arundel Dermatology Management, LLC (7) First lien senior secured term loan
  L+6.00%  10/16/2025  867
   850
   850
   0.96
%
Apex Dental Partners, LLC (11) First lien senior secured delayed draw term loan L+6.00% 11/23/2025 
450  
(9) 
(9)  (0.01)%
Apex Dental Partners, LLC (11) First lien senior secured revolving loan L+6.00% 11/23/2025  150   (3)  (3)  (0.00)%
Apex Dental Partners, LLC (7) First lien senior secured term loan L+6.00% 11/23/2025  634   622   622   0.70%
ASP Global Acquisition, LLC (7) First lien senior secured delayed draw term loan L+5.50% 1/21/2025  739   678   676   0.76%
ASP Global Acquisition, LLC (11)(12) First lien senior secured revolving loan L+5.50% 1/21/2025  485   (8)  (9)  (0.01)%
ASP Global Acquisition, LLC (7) First lien senior secured term loan L+5.50% 1/21/2025  2,220   2,178   2,178   2.46%
Beacon Oral Specialists Management LLC (11) First lien senior secured delayed draw term loan L+5.75% 12/14/2025  536   (9)  (9)  (0.01)%
Beacon Oral Specialists Management LLC (11) First lien senior secured revolving loan L+5.75% 12/14/2025  150   (3)  (3)  (0.00)%
Beacon Oral Specialists Management LLC (6) First lien senior secured term loan L+5.75% 12/14/2025  784   771   771   0.87%
Geriatric Medical and Surgical Supply, LLC (5) First lien senior secured term loan L+6.00% 12/21/2025  1,337   1,040   1,040   1.18%
Peak Dental Services, LLC (11) First lien senior secured delayed draw term loan L+6.25% 12/31/2025  530   (11)  (11)  (0.01)%
Peak Dental Services, LLC (7) First lien senior secured revolving loan L+6.25% 12/31/2025  133   24   24   0.03%
Peak Dental Services, LLC (7) First lien senior secured term loan L+6.25% 12/31/2025  550   539   539   0.61%
Peak Investment Holdings, LLC (11) First lien senior secured delayed draw term loan L+6.50% 12/6/2024  485   (8)  (19)  (0.02)%
Peak Investment Holdings, LLC (11) First lien senior secured revolving loan L+6.50% 12/6/2024  324   (5)  (13)  (0.01)%
Peak Investment Holdings, LLC (7) First lien senior secured term loan L+6.50% 12/6/2024  423   417   407   0.46%
SAMGI Buyer, Inc. (11) First lien senior secured revolving loan L+6.50% 4/14/2025  138   (3)  (3)  (0.00)%
SAMGI Buyer, Inc. (7) First lien senior secured term loan L+6.50% 4/14/2025  539   527   528   0.60%
SCP ENT and Allergy Services, LLC (8) First lien senior secured delayed draw term loan L+6.50% 9/25/2025  1,173   76   77   0.09%
SCP ENT and Allergy Services, LLC (11) First lien senior secured revolving loan L+6.50% 9/25/2025  218   (5)  (5)  (0.01)%
SCP ENT and Allergy Services, LLC (8) First lien senior secured term loan L+6.50% 9/25/2025  914   893   894   1.01%
SCP Eye Care Services, LLC (7)(8) First lien senior secured delayed draw term loan L+6.00% 9/11/2022  2,915   2,892   2,889   3.25%
SCP Eye Care Services, LLC (11) First lien senior secured revolving loan L+6.00% 9/11/2022  469   (4)  (4)  (0.00)%
SCP Eye Care Services, LLC (8) First lien senior secured term loan L+6.00% 9/11/2022  2,138   2,120   2,119   2.39%
Silver Falls MSO, LLC (8) First lien senior secured revolving loan L+5.75% 8/30/2024  235   52   44   0.05%
Silver Falls MSO, LLC (8) First lien senior secured term loan L+5.75% 8/30/2024  1,317   1,294   1,249   1.41%
Southeast Primary Care Partners, LLC (11) First lien senior secured delayed draw term loan L+6.25% 12/30/2025  300   (7)  (7)  (0.01)%
Southeast Primary Care Partners, LLC (11) First lien senior secured revolving loan L+6.25% 12/30/2025  225   (6)  (6)  (0.01)%
Southeast Primary Care Partners, LLC (5) First lien senior secured term loan L+6.25% 12/30/2025  732   714   714   0.81%
Varsity DuvaSawko Operating Corp. (11) First lien senior secured revolving loan L+6.25% 11/27/2024  474   (7)  (7)  (0.01)%
Varsity DuvaSawko Operating Corp. (7)(8) First lien senior secured term loan L+6.25% 11/27/2024  2,428   2,388   2,392   2.69%
Vital Care Buyer, LLC (11) First lien senior secured revolving loan L+6.00% 10/19/2025  580   (10)  (10)  (0.01)%
Vital Care Buyer, LLC (7) First lien senior secured term loan L+6.00% 10/19/2025  1,024   1,006   1,006   1.14%
         27,629   19,196   19,114   21.60%
Health care technology                      
Spear Education, LLC (11) First lien senior secured delayed draw term loan L+5.50% 2/26/2025 $474  $(4) $(14)  (0.02)%
Spear Education, LLC (7) First lien senior secured revolving loan L+5.50% 2/26/2025  414   411   402   0.45%
Spear Education, LLC (7) First lien senior secured term loan L+5.50% 2/26/2025  871   863   845   0.95%
         1,759   1,270   1,233   1.38%
Internet and direct marketing retail                      
Aquatic Sales Solutions, LLC (7) First lien senior secured revolving loan L+5.50% 12/18/2025��$150  $12  $12   0.01%
Aquatic Sales Solutions, LLC (7) First lien senior secured term loan L+5.50% 12/18/2025  659   646   646   0.73%
DealerOn Inc. (11) First lien senior secured revolving loan L+5.50% 11/19/2024  314   (5)  (4)  (0.00)%
DealerOn Inc. (8) First lien senior secured term loan L+5.50% 11/19/2024  1,311   1,289   1,293   1.46%
         2,434   1,942   1,947   2.20%
IT services                      
Data Source Intermediate Holdings, LLC (8) First lien senior secured revolving loan L+5.50% 2/11/2025 $123  $121  $118   0.13%
Data Source Intermediate Holdings, LLC (8) First lien senior secured term loan L+5.50% 2/11/2025  832   818   803   0.91%
Legility, LLC (11) First lien senior secured revolving loan L+6.00% 12/17/2024  123   (2)  (3)  (0.00)%
Legility, LLC (7)(8) First lien senior secured term loan L+6.00% 12/17/2025  721   708   698   0.79%
Library Associates, LLC (11) First lien senior secured revolving loan L+7.00% 8/13/2023  211   (4)  (4)  (0.00)%
Library Associates, LLC (7) First lien senior secured term loan L+7.00% 8/13/2023  1,114   1,093   1,095   1.24%
         3,124   2,734   2,707   3.07%

The accompanying notes are an integral part of these consolidated financial statements.
12

AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of December 31, 2020
(Amounts in thousands)

Company(1)(2) Investment 
 
Interest Rate
 Maturity Date Principal/ Par Amount  Amortized Cost(3)  Fair Value  Percentage of Net Assets 
Investments - Continued                      
Non-controlled/non-affiliated senior secured debt (4) - Continued                      
Machinery                      
Industrial Dynamics Company, Ltd. (7)(11)(14) First lien senior secured revolving loan L+6.25% 8/20/2024 $141  $(2) $(6)  (0.01)%
Industrial Dynamics Company, Ltd. (7) First lien senior secured term loan L+6.25% 8/20/2024  936   920   896   1.01%
         1,077   918   890   1.00%
Media                      
ALM Media, LLC (11)(16) First lien senior secured revolving loan L+6.50% 11/25/2024 $971  $(15) $(17)  (0.02)%
ALM Media, LLC (7) First lien senior secured term loan L+6.50% 11/25/2024  2,762   2,716   2,716   3.07%
         3,733   2,701   2,699   3.05%
Metals and mining                      
Copperweld Group, Inc. (11) First lien senior secured revolving loan L+6.00% 9/27/2024 $400  $(7) $(8)  (0.01)%
Copperweld Group, Inc. (8)(10) First lien senior secured term loan L+6.00% 9/27/2024  2,077   2,040   2,037   2.30%
         2,477   2,033   2,029   2.29%
Personal products                      
Cosmetic Solutions, LLC (11) First lien senior secured delayed draw term loan L+5.75% 10/17/2025 $366  $(6) $(9)  (0.01)%
Cosmetic Solutions, LLC (11) First lien senior secured revolving loan L+5.75% 10/17/2025  344   (5)  (9)  (0.01)%
Cosmetic Solutions, LLC (8) First lien senior secured term loan L+5.75% 10/17/2025  2,844   2,796   2,772   3.13%
         3,554   2,785   2,754   3.11%
Software                      
Affinitiv, Inc. (11) First lien senior secured revolving loan L+7.00% 8/26/2024 $248  $(3) $(2)  (0.00)%
Affinitiv, Inc. (7) First lien senior secured term loan L+7.00% 8/26/2024  2,346   2,313   2,330   2.63%
         2,594   2,310   2,328   2.63%
Textiles, apparel and luxury goods                      
Lakeshirts LLC (11) First lien senior secured delayed draw term loan L+4.75% 12/23/2025 $398  $(5) $(12)  (0.01)%
Lakeshirts LLC (7) First lien senior secured revolving loan L+4.75% 12/23/2024  398   88   84   0.09%
Lakeshirts LLC (7) First lien senior secured term loan L+4.75% 12/23/2024  1,582   1,560   1,535   1.74%
         2,378   1,643   1,607   1.82%
Trading companies and distributors                      
Banner Buyer, LLC (11) First lien senior secured delayed draw term loan L+5.75% 10/31/2025 $1,048  $(7) $(15)  (0.02)%
Banner Buyer, LLC (5) First lien senior secured revolving loan L+5.75% 10/31/2025  370   69   67   0.08%
Banner Buyer, LLC (5)(9) First lien senior secured term loan L+5.75% 10/31/2025  1,400   1,379   1,375   1.55%
Empire Equipment Company, LLC (11) First lien senior secured delayed draw term loan L+5.75% 1/17/2025  941   (18)  (41)  (0.05)%
Empire Equipment Company, LLC (8) First lien senior secured revolving loan L+5.75% 1/17/2025  439   117   106   0.12%
Empire Equipment Company, LLC (8) First lien senior secured term loan L+5.75% 1/17/2025  1,349   1,323   1,290   1.46%
Montway LLC (11) First lien senior secured delayed draw term loan L+6.50% 11/4/2025  675   (15)  (15)  (0.02)%
Montway LLC (11) First lien senior secured revolving loan L+6.50% 11/4/2025  150   (3)  (3)  (0.00)%
Montway LLC (8) First lien senior secured term loan L+6.50% 11/4/2025  730   714   714   0.81%
Triad Technologies, LLC (7) First lien senior secured revolving loan L+4.75% 10/31/2025  314   26   27   0.03%
Triad Technologies, LLC (8) First lien senior secured term loan L+4.75% 10/31/2025  950   935   938   1.06%
         8,366   4,520   4,443   5.02%
Total non-controlled/non-affiliated senior secured debt         $100,557  $76,415  $75,805   85.65%
                       
Non-controlled/non-affiliated sponsor subordinated note                      
Trading companies and distributors                      
Empire Equipment Company, LLC Sponsor subordinated note 12.50% + 7.00% PIK 7/17/2025 $7  $7  $7   0.01%
Total non-controlled/non-affiliated sponsor subordinated note         $7  $7  $7   0.01%
Total non-controlled/non-affiliated investments         $100,564  $76,422  $75,812   85.66%
                       
Non-controlled/affiliated investments                      
Multisector holdings                      
Twin Brook Equity Holdings, LLC (17) Equity - 1.84% membership interest         $3,201  $3,721   4.20%
Total non-controlled/affiliated investments           $3,201  $3,721   4.20%
Total investments           $79,623  $79,533   89.86%

(1)
Unless otherwise indicated, all investments are considered Level 3 investments.
(2)
Unless otherwise indicated, all investments represent co-investments made with the Company’s affiliates in accordance with the terms of the exemptive relief that the Company received from the U.S. Securities and Exchange Commission.  Refer to Note 6 for further information.
(3)
Principal/par amount is denominated in U.S. Dollars (“$”) unless otherwise noted, Canadian Dollars (“C$”).
(4)
The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.
(4)
(5)
Unless otherwise indicated, the interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBORthe London Interbank Offered Rate (“LIBOR” or “L”), the Term Secured Overnight Financing Rate (“SOFR” or S”) and/or an alternate base rate (e.g. prime rate)rate (“P”)), which typically resets semiannually, quarterly, or monthly at the borrower’s option. The applicable base rate may be subject to a floor. The borrower may also elect to have multiple interest reset periods for each loan.  For each of these loans, we have provided the applicable margin over LIBOR based on each respective credit agreement.
(5)The interest As of March 31, 2022, the reference rates for the floating rate on these loans is subject towere the 1 month LIBOR, which asMonth L of December 31, 2020 was 0.14%.
(6)The interest rate on these loans is subject to 2 month LIBOR, which as0.45%, 3 Month L of December 31, 2020 was 0.19%.
(7)The interest rate on these loans is subject to0.96%, 6 Month L of 1.47%, 3 month LIBOR, which asMonth CDOR of December 31, 2020 was 0.24%.
(8)The interest rate on these loans is subject to1.26%, 1 Month SOFR of 0.16%, 3 Month SOFR of 0.09%, 6 month LIBOR, which asMonth SOFR of December 31, 2020 was 0.26%.
(9)The interest rate on these loans is subject to 12 month LIBOR, which as of December 31, 2020 was 0.34%.
(10)The interest rate on these loans is subject to0.07% and the Prime Rate which as of December 31, 2020 was 3.25%3.50%.
(11)
(6)
Represents revolvers and delayed draw term loans where the entire balance is unfunded as of DecemberMarch 31, 2020.2022.  The negative fair value is a result of the commitment being valued below par.  Refer to Note 78 for further information.
(12)
(7)
Represents investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. The status of these assets under the 1940 Act is subject to change. The Company monitors the status of these assets on an ongoing basis. As of March 31, 2022, non-qualifying assets represented approximately 3.37% of the total assets of the Company.
(8)
Principal balance includes reserve for letter of credit of $141,677 on which the borrower pays 0.00%.
(9)
Principal balance includes reserve for letter of credit of $11,568 on which the borrower pays 6.00%.
(10)
Principal balance includes reserve for letter of credit of $10,663 on which the borrower pays 7.50%.
(11)
Principal balance includes reserve for letter of credit of $2,834 on which the borrower pays 5.50%.
(13)
(12)
Principal balance includes reserve for letter of credit of $20,286$3,517 on which the borrower pays 5.75%6.50%.
(14)
(13)
Principal balance includes reserve for letter of credit of $5,159$4,978 on which the borrower pays 6.25%.
(15)
(14)
Principal balance includes reserve for letter of credit of $10,663$5,410 on which the borrower pays 6.00%7.50%.
(16)
(15)
Principal balance includes reserve for letter of credit of $141,677$2,851 on which the borrower pays 0.00%6.50%.
(16)
Principal balance includes reserve for letter of credit of $3,930 on which the borrower pays 7.00%.
(17)
Principal balance includes reserve for letter of credit of $15,464 on which the borrower pays 7.00%.
(18)
As a practical expedient, the Company uses net asset value (“NAV”) to determine the fair value of this investment. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels.  This represents an investment in an affiliated fund.


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

10
AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of March 31, 2022
  (Unaudited)

Foreign currency forward contracts      
CounterpartyCurrency PurchasedCurrency SoldSettlement Unrealized Appreciation/ (Depreciation) 
Wells Fargo Bank, National AssociationUSD 475CAD 5856/27/2022 $7 
Wells Fargo Bank, National AssociationCAD 11USD 96/27/2022  0 
Wells Fargo Bank, National AssociationUSD 1,112CAD 1,37510/21/2022  13 
Wells Fargo Bank, National AssociationCAD 68USD 5410/21/2022  1 
Wells Fargo Bank, National AssociationUSD 236CAD 2994/18/2022  (3)
Total        $18
 
        
Currency Abbreviations:       
USD - U.S. Dollar       
CAD - Canadian Dollar       

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

11
AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of December 31, 2021
(Amounts in thousands)

Company(1)(2)Investment  
Interest
Rate
 
Maturity
Date
 
Principal/
Par Amount(3)
  
Amortized
Cost(4)
  Fair Value  
Percentage
of Net
Assets
 
Investments                 
Non-controlled/non-affiliated senior secured debt (5)                
Aerospace and defense                 
Mattco Forge, Inc. (13)First lien senior secured revolving loan L + 7.25% 12/6/2024 $506  $(7) $(24)  (0.01)%
Mattco Forge, Inc. (9)First lien senior secured term loan L + 7.25% 12/6/2024  2,190   2,156   2,087   1.13%
            2,149   2,063   1.12%
Auto components                     
AvCarb, LLC (13)First lien senior secured delayed draw term loan L + 6.00% 11/12/2026 $666  $(12) $(13)  (0.01)%
AvCarb, LLC (8)(13)First lien senior secured revolving loan L + 6.00% 11/12/2026  38   (1)  (1)  0.00%
AvCarb, LLC (8)(11)First lien senior secured term loan L + 6.00% 11/12/2026  500   490   490   0.27%
Vehicle Accessories, Inc. (13)First lien senior secured revolving loan L + 5.50% 11/30/2026  38   0   0   0.00%
Vehicle Accessories, Inc. (8)First lien senior secured term loan L + 5.50% 11/30/2026  1,832   1,818   1,818   0.99%
            2,295   2,294   1.25%
Chemicals                     
AM Buyer, LLC (13)First lien senior secured revolving loan L + 6.75% 5/1/2025 $111  $(2) $(1)  
(0.00
)%
AM Buyer, LLC (8)First lien senior secured term loan L + 6.75% 5/1/2025  478   470   472   0.26%
Answer Acquisition, LLC (13)First lien senior secured revolving loan L + 6.00% 12/30/2026  38   (1)  (1)  
(0.00
)%
Answer Acquisition, LLC (8)First lien senior secured term loan L + 6.00% 12/30/2026  1,716   1,682   1,682   0.91%
SASE Company, LLC (13)First lien senior secured revolving loan L + 6.00% 11/15/2026  38   (1)  (1)  
(0.00
)%
SASE Company, LLC (8)First lien senior secured term loan L + 6.00% 11/15/2026 C$233   228   228   0.12%
SASE Company, LLC (8)First lien senior secured term loan L + 6.00% 11/15/2026  1,212   1,189   1,188   0.65%
Teel Plastics, LLC (13)First lien senior secured revolving loan L + 5.00% 1/24/2025  324   (4)  (4)  
(0.00
)%
Teel Plastics, LLC (6)First lien senior secured term loan L + 5.00% 1/24/2025  1,814   1,790   1,793   0.97%
USALCO, LLC (6)First lien senior secured revolving loan L + 6.00% 10/19/2026  100   7   7   0.00%
USALCO, LLC (8)First lien senior secured term loan L + 6.00% 10/19/2027  1,903   1,884   1,885   1.02%
            7,242   7,248   3.94%
Commercial services and supplies                     
Alliance Environmental Group, LLC (13)First lien senior secured delayed draw term loan L + 6.00% 12/30/2023 $75  $(1) $(1)  
(0.00
)%
Alliance Environmental Group, LLC (13)First lien senior secured revolving loan L + 6.00% 12/30/2023  38   (1)  (1)  
(0.00
)%
Alliance Environmental Group, LLC (8)First lien senior secured term loan L + 6.00% 12/30/2027  1,465   1,436   1,436   0.78%
Edko Acquisition, LLC (13)First lien senior secured revolving loan L + 5.75% 6/25/2026  38   (1)  (1)  
(0.00
)%
Edko Acquisition, LLC (8)First lien senior secured term loan L + 5.75% 6/25/2026  1,020   1,001   1,003   0.54%
Green Monster Acquisition, LLC (13)First lien senior secured revolving loan L + 5.50% 12/28/2026  38   (1)  (1)  
(0.00
)%
Green Monster Acquisition, LLC (6)First lien senior secured term loan L + 5.50% 12/28/2026  1,188   1,164   1,164   0.63%
Nimlok Company, LLC (13)(17)First lien senior secured revolving loan L + 7.50% 11/27/2024  320   (4)  (7)  
(0.00
)%
Nimlok Company, LLC (8)First lien senior secured term loan L + 7.50% 11/27/2025  1,926   1,900   1,876   1.02%
Steel City Wash, LLC (8)First lien senior secured delayed draw term loan L + 6.00% 12/27/2026  90   89   89   0.05%
Steel City Wash, LLC (13)First lien senior secured revolving loan L + 6.00% 12/27/2026  38   (1)  (1)  
(0.00
)%
Steel City Wash, LLC (8)First lien senior secured term loan L + 6.00% 12/27/2026  409   401   401   0.22%
            5,982   5,957   3.24%
Construction and engineering                     
BCI Burke Holding Corp.  (13)First lien senior secured delayed draw term loan L + 5.75% 12/14/2027 $132  $(2) $(2)  
(0.00
)%
BCI Burke Holding Corp.  (7)First lien senior secured revolving loan L + 5.75% 12/14/2027  79   14   14   0.01%
BCI Burke Holding Corp.  (7)First lien senior secured term loan L + 5.75% 12/14/2027  1,785   1,758   1,758   0.95%
CPS HVAC Group, LLC (13)First lien senior secured delayed draw term loan L + 6.75% 12/15/2026  150   (3)  (3)  
(0.00
)%
CPS HVAC Group, LLC (13)First lien senior secured revolving loan L + 6.75% 12/15/2026  38   (1)  (1)  
(0.00
)%
CPS HVAC Group, LLC (8)First lien senior secured term loan L + 6.75% 12/15/2026  275   269   269   0.15%
Domino Equipment Company, LLC (13)First lien senior secured revolving loan L + 6.25% 4/1/2026  79   (1)  (1)  
(0.00
)%
Domino Equipment Company, LLC (8)First lien senior secured term loan L + 6.25% 4/1/2026  581   571   571   0.31%
            2,605   2,605   1.42%
Containers and packaging                     
Innovative FlexPak, LLC (8)First lien senior secured revolving loan L + 6.00% 1/23/2025 $627  $210  $214   0.12%
Innovative FlexPak, LLC (8)First lien senior secured term loan L + 6.00% 1/23/2025  2,668   2,624   2,643   1.44%
Jansy Packaging, LLC (13)First lien senior secured revolving loan L + 7.00% 9/30/2022  706   (5)  (15)  (0.01)%
Jansy Packaging, LLC (8)First lien senior secured term loan L + 7.00% 9/30/2022  1,090   1,078   1,067   0.58%
MRC Keeler Acquisition, LLC (13)First lien senior secured delayed draw term loan L + 5.75% 12/4/2025  150   (2)  (2)  
(0.00
)%
MRC Keeler Acquisition, LLC (13)First lien senior secured revolving loan L + 5.75% 12/4/2025  150   (2)  (2)  
(0.00
)%
MRC Keeler Acquisition, LLC (8)First lien senior secured term loan L + 5.75% 12/4/2025  966   951   952   0.52%
Vanguard Packaging, LLC (8)(9)First lien senior secured revolving loan L + 5.25% 8/9/2024  535   228   225   0.12%
Vanguard Packaging, LLC (8)First lien senior secured term loan L + 5.25% 8/9/2024  1,205   1,195   1,191   0.65%
            6,277   6,273   3.41%
Distributors                     
RTP Acquisition, LLC (13)First lien senior secured revolving loan L + 6.50% 8/17/2026 $38  $(1) $(1)  
(0.00
)%
RTP Acquisition, LLC (8)First lien senior secured term loan L + 6.50% 8/17/2026  536   526   527   0.29%
            525   526   0.29%
Diversified consumer services                     
50Floor, LLC (13)First lien senior secured revolving loan L + 5.75% 12/31/2025 $199  $(3) $(3)  
(0.00
)%
50Floor, LLC (8)First lien senior secured term loan L + 5.75% 12/31/2026  982   965   967   0.53%
Groundworks Operations, LLC (8)First lien senior secured delayed draw term loan L + 5.00% 1/17/2026  2,035   1,821   1,828   0.99%
Groundworks Operations, LLC (13)First lien senior secured revolving loan L + 5.00% 1/17/2026  387   (5)  (4)  
(0.00
)%
Groundworks Operations, LLC (8)First lien senior secured term loan L + 5.00% 1/17/2026  2,504   2,469   2,480   1.35%
Home Brands Group Holdings, Inc. (13)First lien senior secured revolving loan L + 5.00% 11/8/2026  48   (1)  (1)  
(0.00
)%
Home Brands Group Holdings, Inc. (8)First lien senior secured term loan L + 5.00% 11/8/2026  2,094   2,053   2,053   1.12%
ISSA, LLC (8)First lien senior secured revolving loan L + 6.00% 3/1/2027  131   63   63   0.03%
ISSA, LLC (8)First lien senior secured term loan L + 6.00% 3/1/2027  873   858   859   0.47%
Juniper Landscaping Holdings LLC (13)First lien senior secured delayed draw term loan L + 6.00% 12/29/2023  88   (2)  (2)  
(0.00
)%
Juniper Landscaping Holdings LLC (6)(8)First lien senior secured revolving loan L + 6.00% 12/29/2026  44   21   21   0.01%
Juniper Landscaping Holdings LLC (6)(8)First lien senior secured term loan L + 6.00% 12/29/2026  1,477   1,452   1,452   0.79%
Kalkomey Enterprises, LLC (13)First lien senior secured revolving loan L + 6.50% 4/24/2025  77   (1)  (1)  
(0.00
)%
Kalkomey Enterprises, LLC (8)First lien senior secured term loan L + 6.50% 4/24/2026  1,060   1,039   1,045   0.57%
NSG Buyer, Inc. (13)First lien senior secured revolving loan L + 5.50% 9/30/2024  294   (2)  (1)  
(0.00
)%
NSG Buyer, Inc. (6)First lien senior secured term loan L + 5.50% 9/30/2025  2,306   2,286   2,292   1.25%
PPW Acquisition, LLC (12)First lien senior secured revolving loan P + 5.25% 9/30/2026  38   7   7   0.00%
PPW Acquisition, LLC (8)First lien senior secured term loan L + 6.25% 9/30/2026  611   599   600   0.33%
United Land Services Opco Parent, LLC (8)First lien senior secured delayed draw term loan L + 6.00% 3/23/2026  1,073   191   192   0.10%
United Land Services Opco Parent, LLC (6)First lien senior secured revolving loan L + 6.00% 3/23/2026  131   79   79   0.04%
United Land Services Opco Parent, LLC (8)First lien senior secured term loan L + 6.00% 3/23/2026  306   300   301   0.16%
            14,189   14,227   7.73%
Electrical equipment                     
AEP Passion Intermediate Holdings, Inc. (13)First lien senior secured delayed draw term loan L + 5.50% 10/5/2027 $72  $(1) $(1)  
(0.00
)%
AEP Passion Intermediate Holdings, Inc. (6)First lien senior secured revolving loan L + 5.50% 10/5/2027  48   28   28   0.02%
AEP Passion Intermediate Holdings, Inc. (6)First lien senior secured term loan L + 5.50% 10/5/2027  1,294   1,275   1,278   0.69%
            1,302   1,305   0.71%

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


12

AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of December 31, 2021
(Amounts in thousands)

Company(1)(2) Investment  
Interest
Rate
 
Maturity
Date
 
Principal/
Par Amount(3)
  
Amortized
Cost(4)
  Fair Value  
Percentage
of Net
Assets
 
Investments                 
Non-controlled/non-affiliated senior secured debt (5) - Continued                
Electronic equipment, instruments and components                
Advanced Lighting Acquisition, LLC (13)First lien senior secured revolving loan L + 7.00% 11/22/2025 $324  $(4) $(6)  
(0.00
)%
Advanced Lighting Acquisition, LLC (6)(8)First lien senior secured term loan L + 7.00% 11/22/2025  1,434   1,413   1,408   0.76%
Nelson Name Plate Company (8)First lien senior secured delayed draw term loan L + 5.75% 10/18/2026  120   103   103   0.06%
Nelson Name Plate Company (8)First lien senior secured revolving loan L + 5.75% 10/18/2026 ��90   10   10   0.01%
Nelson Name Plate Company (8)First lien senior secured term loan L + 5.75% 10/18/2026  776   761   761   0.41%
            2,283   2,276   1.24%
Food and staples retailing                     
Engelman Baking Co., LLC (8)First lien senior secured revolving loan L + 6.75% 2/28/2025 $207  $50  $48   0.03%
Engelman Baking Co., LLC (8)First lien senior secured term loan L + 6.75% 2/28/2025  720   705   699   0.38%
Mad Rose Company, LLC (13)(22)First lien senior secured revolving loan L + 6.50% 5/7/2026  119   (3)  (2)  
(0.00
)%
Mad Rose Company, LLC (6)First lien senior secured term loan L + 6.50% 5/7/2026  895   877   879   0.48%
Main Street Gourmet, LLC (13)First lien senior secured delayed draw term loan L + 5.25% 11/10/2025  666   (10)  (10)  (0.01)%
Main Street Gourmet, LLC (13)First lien senior secured revolving loan L + 5.25% 11/10/2025  38   (1)  (1)  
(0.00
)%
Main Street Gourmet, LLC (8)First lien senior secured term loan L + 5.25% 11/10/2025  1,132   1,116   1,116   0.61%
NutriScience Innovations, LLC (13)First lien senior secured revolving loan L + 7.00% 4/21/2026  131   (2)  (2)  
(0.00
)%
NutriScience Innovations, LLC (8)First lien senior secured term loan L + 7.00% 4/21/2026  482   473   474   0.26%
SCP Beverage Buyer, LLC (13)First lien senior secured revolving loan L + 6.00% 11/24/2026  38   (1)  (1)  
(0.00
)%
SCP Beverage Buyer, LLC (6)First lien senior secured term loan L + 6.00% 11/24/2026  416   408   408   0.22%
            3,612   3,608   1.96%
Food products                     
Icelandirect, LLC (9)(12)First lien senior secured revolving loan L + 6.00% 7/30/2026 $38  $14  $14   0.01%
Icelandirect, LLC (8)(9)First lien senior secured term loan L + 6.00% 7/30/2026  691   679   680   0.37%
Starwest Botanicals Acquisition, LLC (13)First lien senior secured revolving loan L + 5.25% 4/30/2027  174   (3)  (2)  
(0.00
)%
Starwest Botanicals Acquisition, LLC (8)First lien senior secured term loan L + 5.25% 4/30/2027  815   802   804   0.44%
            1,492   1,496   0.81%
Gas utilities                     
Hydromax USA, LLC (6)First lien senior secured delayed draw term loan L + 6.25% 12/30/2026 $113  $111  $112   0.06%
Hydromax USA, LLC (6)First lien senior secured revolving loan L + 6.25% 12/30/2026  228   42   43   0.02%
Hydromax USA, LLC (6)First lien senior secured term loan L + 6.25% 12/30/2026  1,247   1,227   1,230   0.67%
            1,380   1,385   0.75%
Health care equipment and supplies                     
EMSAR Acquisition LLC (6)(8)First lien senior secured delayed draw term loan L + 6.50% 3/30/2026 $666  $207  $207   0.11%
EMSAR Acquisition LLC (8)First lien senior secured revolving loan L + 6.50% 3/30/2026  134   38   38   0.02%
EMSAR Acquisition LLC (8)First lien senior secured term loan L + 6.50% 3/30/2026  645   633   634   0.34%
Reliable Medical Supply LLC (13)First lien senior secured delayed draw term loan L + 7.00% 4/8/2025  68   (1)  (1)  
(0.00
)%
Reliable Medical Supply LLC (8)First lien senior secured revolving loan L + 7.00% 4/8/2025  138   25   26   0.01%
Reliable Medical Supply LLC (8)First lien senior secured term loan L + 7.00% 4/8/2025  758   743   747   0.41%
SCA Buyer, LLC (8)First lien senior secured delayed draw term loan L + 6.50% 1/20/2026  397   55   58   0.03%
SCA Buyer, LLC (8)First lien senior secured revolving loan L + 6.50% 1/20/2026  133   50   51   0.03%
SCA Buyer, LLC (8)First lien senior secured term loan L + 6.50% 1/20/2026  764   746   752   0.41%
Spectrum Solutions, LLC (13)First lien senior secured revolving loan L + 6.00% 3/5/2026  267   (4)  (4)  
(0.00
)%
Spectrum Solutions, LLC (6)First lien senior secured term loan L + 6.00% 3/5/2026  689   677   678   0.37%
            3,169   3,186   1.73%
Health care providers and services                     
Agility Intermediate, Inc. (13)First lien senior secured delayed draw term loan L + 6.50% 4/15/2026 $401  $(7) $(6)  
(0.00
)%
Agility Intermediate, Inc. (13)First lien senior secured revolving loan L + 6.50% 4/15/2026  134   (2)  (2)  
(0.00
)%
Agility Intermediate, Inc. (8)(9)First lien senior secured term loan L + 6.50% 4/15/2026  245   240   241   0.13%
Apex Dental Partners, LLC (8)First lien senior secured delayed draw term loan L + 6.25% 11/23/2025  449   377   378   0.21%
Apex Dental Partners, LLC (13)First lien senior secured revolving loan L +  6.25% 11/23/2025  150   (2)  (2)  
(0.00
)%
Apex Dental Partners, LLC (8)First lien senior secured term loan L + 6.25% 11/23/2025  628   618   619   0.34%
ASC Ortho Management, LLC (13)First lien senior secured delayed draw term loan L + 6.00% 12/31/2026  360   (7)  (7)  
(0.00
)%
ASC Ortho Management, LLC (13)First lien senior secured revolving loan L + 6.00% 12/31/2026  38   (1)  (1)  
(0.00
)%
ASC Ortho Management, LLC (8)First lien senior secured term loan L + 6.00% 12/31/2026  1,201   1,177   1,177   0.64%
ASP Global Acquisition, LLC (8)First lien senior secured delayed draw term loan L + 5.50% 1/21/2025  732   674   673   0.37%
ASP Global Acquisition, LLC (13)(15)First lien senior secured revolving loan L + 5.50% 1/21/2025  485   (6)  (7)  
(0.00
)%
ASP Global Acquisition, LLC (11)First lien senior secured term loan L + 5.50% 1/21/2025  2,802   2,760   2,762   1.50%
Beacon Oral Specialists Management LLC (8)First lien senior secured delayed draw term loan L + 5.75% 12/14/2025  161   158   159   0.09%
Beacon Oral Specialists Management LLC (8)(9)First lien senior secured delayed draw term loan L + 5.75% 12/14/2025  534   527   528   0.29%
Beacon Oral Specialists Management LLC (6)First lien senior secured revolving loan L + 5.75% 12/14/2025  150   112   112   0.06%
Beacon Oral Specialists Management LLC (8)First lien senior secured term loan L + 5.75% 12/14/2025  954   940   942   0.51%
Behavior Frontiers, LLC (8)(21)First lien senior secured revolving loan L + 6.25% 5/21/2026  38   18   16   0.01%
Behavior Frontiers, LLC (8)First lien senior secured term loan L + 6.25% 5/21/2026  657   643   604   0.33%
Brightview, LLC (13)First lien senior secured delayed draw term loan L + 5.75% 12/14/2026  296   (5)  (3)  
(0.00
)%
Brightview, LLC (13)First lien senior secured revolving loan L + 5.75% 12/14/2026  62   (1)  (1)  
(0.00
)%
Brightview, LLC (8)(9)First lien senior secured term loan L + 5.75% 12/14/2026  3,323   3,258   3,287   1.79%
Canadian Orthodontic Partners Corp. (8)(14)First lien senior secured delayed draw term loan C + 6.50% 3/19/2026 $360   186   188   0.10%
Canadian Orthodontic Partners Corp. (12)(14)First lien senior secured revolving loan P + 5.50% 3/19/2026 $267   170   174   0.09%
Canadian Orthodontic Partners Corp. (14)First lien senior secured term loan C + 6.50% 3/19/2026 $226   177   178   0.10%
Canadian Orthodontic Partners Corp. (13)(14)First lien senior secured revolving loan C + 6.50% 3/19/2026  107   (2)  (1)  
(0.00
)%
Community Care Partners, LLC (6)First lien senior secured delayed draw term loan L + 5.25% 8/11/2025  225   90   90   0.05%
Community Care Partners, LLC (13)First lien senior secured revolving loan L + 5.25% 8/11/2025  38   (1)  (1)  
(0.00
)%
Community Care Partners, LLC (6)First lien senior secured term loan L + 5.25% 8/11/2025  656   645   646   0.35%
Dermatology Medical Partners OpCo, LLC (8)First lien senior secured delayed draw term loan L + 6.50% 10/29/2026  98   (1)  (1)  
(0.00
)%
Dermatology Medical Partners OpCo, LLC (13)First lien senior secured revolving loan L + 6.50% 10/29/2026  38   (1)  (1)  
(0.00
)%
Dermatology Medical Partners OpCo, LLC (8)First lien senior secured term loan L + 6.50% 10/29/2026  324   318   318   0.17%
Varsity DuvaSawko Operating Corp. (13)First lien senior secured revolving loan L + 6.25% 11/27/2024  474   (5)  (5)  
(0.00
)%
Varsity DuvaSawko Operating Corp. (8)First lien senior secured term loan L + 6.25% 11/27/2024  2,676   2,643   2,650   1.44%
EH Management Company, LLC (13)First lien senior secured revolving loan L + 6.00% 7/15/2026  38   (1)  (1)  
(0.00
)%
EH Management Company, LLC (8)First lien senior secured term loan L + 6.00% 7/15/2026  426   418   419   0.23%
Geriatric Medical and Surgical Supply, LLC (13)First lien senior secured revolving loan L + 6.00% 12/21/2025  300   (5)  (4)  
(0.00
)%
Geriatric Medical and Surgical Supply, LLC (8)First lien senior secured term loan L + 6.00% 12/21/2025  1,027   1,010   1,011   0.55%
Golden Bear PT Partners, LLC (8)First lien senior secured delayed draw term loan L + 6.25% 10/22/2026  382   143   143   0.08%
Golden Bear PT Partners, LLC (8)First lien senior secured revolving loan L + 6.25% 10/22/2026  38   1   1   0.00%
Golden Bear PT Partners, LLC (8)First lien senior secured term loan L + 6.25% 10/22/2026  1,500   1,471   1,471   0.80%
Guardian Dentistry Practice Management, LLC (13)First lien senior secured delayed draw term loan L + 5.75% 12/14/2023  68   (1)  (1)  
(0.00
)%
Guardian Dentistry Practice Management, LLC (8)First lien senior secured delayed draw term loan L + 5.75% 8/20/2026  323   317   318   0.17%
Guardian Dentistry Practice Management, LLC (13)First lien senior secured revolving loan L + 5.75% 12/14/2023  23   0   0   0.00%
Guardian Dentistry Practice Management, LLC (8)First lien senior secured term loan L + 5.75% 8/20/2026  526   517   518   0.28%
Network Partners Acquisition, LLC (13)First lien senior secured delayed draw term loan L + 6.50% 12/30/2026  113   (2)  (2)  
(0.00
)%
Network Partners Acquisition, LLC (13)First lien senior secured revolving loan L + 6.50% 12/30/2026  38   (1)  (1)  
(0.00
)%
Network Partners Acquisition, LLC (8)First lien senior secured term loan L + 6.50% 12/30/2026  396   388   388   0.21%
Novum Orthopedic Partners Management, LLC (13)First lien senior secured delayed draw term loan L + 5.75% 12/29/2027  298   (4)  (4)  
(0.00
)%
Novum Orthopedic Partners Management, LLC (13)First lien senior secured revolving loan L + 5.75% 12/29/2026  75   (1)  (1)  
(0.00
)%
Novum Orthopedic Partners Management, LLC (8)First lien senior secured term loan L + 5.75% 12/29/2027  2,176   2,132   2,132   1.16%


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

13
AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of December 31, 2021
(Amounts in thousands)

Company(1)(2)Investment  
Interest
Rate
 
Maturity
Date
 
Principal/
Par Amount(3)
  
Amortized
Cost(4)
  Fair Value  
Percentage
of Net
Assets
 
Investments                 
Non-controlled/non-affiliated senior secured debt (5) - Continued                
Health care providers and services - Continued                
Peak Dental Services, LLC (8)First lien senior secured delayed draw term loan L + 6.00% 12/31/2025 $529  $477  $478   0.26%
Peak Dental Services, LLC (8)First lien senior secured revolving loan L + 6.00% 12/31/2025  133   24   25   0.01%
Peak Dental Services, LLC (8)First lien senior secured term loan L + 6.00% 12/31/2025  545   535   536   0.29%
Peak Investment Holdings, LLC (8)First lien senior secured delayed draw term loan L + 6.50% 12/6/2024  603   10   1   0.00%
Peak Investment Holdings, LLC (13)First lien senior secured revolving loan L + 6.50% 12/6/2024  324   (4)  (9)  
(0.00
)%
Peak Investment Holdings, LLC (8)First lien senior secured term loan L + 6.50% 12/6/2024  1,301   1,283   1,264   0.69%
Pentec Acquisition Corp. (13)First lien senior secured revolving loan L + 6.00% 10/8/2026  75   (1)  (1)  
(0.00
)%
Pentec Acquisition Corp. (8)First lien senior secured term loan L + 6.00% 10/8/2026  1,006   987   996   0.54%
Revival Animal Health, LLC (13)First lien senior secured revolving loan L + 6.50% 4/6/2026  131   (2)  (2)  
(0.00
)%
Revival Animal Health, LLC (8)(12)First lien senior secured term loan L + 6.50% 4/6/2026  985   966   969   0.53%
RQM Buyer, Inc. (13)First lien senior secured delayed draw term loan L + 5.75% 8/12/2026  84   (2)  (1)  
(0.00
)%
RQM Buyer, Inc. (9)(13)First lien senior secured revolving loan L + 5.75% 8/12/2026  150   (3)  (1)  
(0.00
)%
RQM Buyer, Inc. (9)First lien senior secured term loan L + 5.75% 8/12/2026  1,162   1,140   1,151   0.63%
SAMGI Buyer, Inc. (13)First lien senior secured revolving loan L + 6.00% 4/14/2025  138   (3)  (2)  
(0.00
)%
SAMGI Buyer, Inc. (8)First lien senior secured term loan L + 6.00% 4/14/2025  1,164   1,142   1,146   0.62%
SCP ENT and Allergy Services, LLC (13)First lien senior secured delayed draw term loan L + 5.50% 12/15/2023  150   (2)  (2)  
(0.00
)%
SCP ENT and Allergy Services, LLC (8)First lien senior secured delayed draw term loan L + 5.50% 9/25/2025  1,171   546   555   0.30%
SCP ENT and Allergy Services, LLC (13)First lien senior secured revolving loan L + 5.50% 12/15/2023  218   (5)  (3)  
(0.00
)%
SCP ENT and Allergy Services, LLC (8)First lien senior secured term loan L + 5.50% 9/25/2025  1,568   1,535   1,543   0.84%
Signature Dental Partners LLC (6)(8)First lien senior secured delayed draw term loan L + 6.00% 10/29/2026  180   35   35   0.02%
Signature Dental Partners LLC (13)First lien senior secured revolving loan L + 6.00% 10/29/2026  38   (1)  (1)  
(0.00
)%
Signature Dental Partners LLC (8)First lien senior secured term loan L + 6.00% 10/29/2026  870   853   853   0.46%
Silver Falls MSO, LLC (8)First lien senior secured revolving loan L + 6.25% 8/30/2024  235   138   135   0.07%
Silver Falls MSO, LLC (8)First lien senior secured term loan L + 6.25% 8/30/2024  1,304   1,286   1,272   0.69%
SimiTree Acquisition LLC (8)First lien senior secured delayed draw term loan L + 5.25% 5/17/2026  888   528   529   0.29%
SimiTree Acquisition LLC (13)First lien senior secured revolving loan L + 5.25% 5/17/2026  178   (3)  (3)  
(0.00
)%
SimiTree Acquisition LLC (8)First lien senior secured term loan L + 5.25% 5/17/2026  1,151   1,131   1,132   0.61%
Southeast Primary Care Partners, LLC (6)First lien senior secured delayed draw term loan L + 6.25% 12/30/2025  300   54   54   0.03%
Southeast Primary Care Partners, LLC (6)First lien senior secured revolving loan L + 6.25% 12/30/2025  225   26   26   0.01%
Southeast Primary Care Partners, LLC (6)First lien senior secured term loan L + 6.25% 12/30/2025  725   710   711   0.39%
Southern Orthodontic Partners Management, LLC (8)First lien senior secured delayed draw term loan L + 5.75% 1/27/2026  904   883   887   0.48%
Southern Orthodontic Partners Management, LLC (13)First lien senior secured delayed draw term loan L + 5.75% 12/17/2023  75   (1)  (1)  
(0.00
)%
Southern Orthodontic Partners Management, LLC (8)First lien senior secured revolving loan L + 5.75% 1/27/2026  134   38   39   0.02%
Southern Orthodontic Partners Management, LLC (8)First lien senior secured term loan L + 5.75% 1/27/2026  1,021   1,001   1,003   0.54%
Vital Care Buyer, LLC (13)First lien senior secured revolving loan L + 5.50% 10/19/2025  580   (8)  (7)  
(0.00
)%
Vital Care Buyer, LLC (8)First lien senior secured term loan L + 5.50% 10/19/2025  916   903   905   0.49%
Western Veterinary Partners, LLC (6)(8)First lien senior secured delayed draw term loan L + 5.25% 10/29/2026  334   204   206   0.11%
Western Veterinary Partners, LLC (13)First lien senior secured revolving loan L + 5.25% 10/29/2026  24   0   0   0.00%
Western Veterinary Partners, LLC (8)First lien senior secured term loan L + 5.25% 10/29/2026  759   745   748   0.41%
            39,217   39,257   21.32%
Health care technology                     
Millennia Patient Services, LLC (13)First lien senior secured delayed draw term loan L + 6.50% 3/8/2026 $267  $(4) $(4)  
(0.00
)%
Millennia Patient Services, LLC (13)First lien senior secured revolving loan L + 6.50% 3/8/2026  134   (2)  (2)  
(0.00
)%
Millennia Patient Services, LLC (8)First lien senior secured term loan L+ 6.50% 3/8/2026  1,000   983   985   0.54%
Spear Education, LLC (13)First lien senior secured delayed draw term loan L + 5.00% 2/26/2025  474   (3)  (8)  
(0.00
)%
Spear Education, LLC (13)First lien senior secured revolving loan L + 5.00% 2/26/2025  414   (3)  (7)  
(0.00
)%
Spear Education, LLC (9)First lien senior secured term loan L + 5.00% 2/26/2025  862   856   848   0.46%
            1,827   1,812   0.98%
Household durables                     
Storm Smart Buyer LLC (13)First lien senior secured revolving loan L + 6.00% 4/5/2026 $131  $(2) $(2)  
(0.00
)%
Storm Smart Buyer LLC (9)First lien senior secured term loan L + 6.00% 4/5/2026  917   901   903   0.49%
Trademark Global, LLC (13)First lien senior secured delayed draw term loan L + 6.00% 7/30/2024  61   0   0   0.00%
Trademark Global, LLC (6)First lien senior secured revolving loan L + 6.00% 7/30/2024  113   85   85   0.05%
Trademark Global, LLC (6)First lien senior secured term loan L + 6.00% 7/30/2024  1,834   1,826   1,829   0.99%
            2,810   2,815   1.53%
Internet and direct marketing retail                     
Aquatic Sales Solutions, LLC (8)First lien senior secured revolving loan L + 5.50% 12/18/2025 $188  $67  $68   0.04%
Aquatic Sales Solutions, LLC (8)First lien senior secured term loan L + 5.50% 12/18/2025  2,541   2,495   2,503   1.36%
DealerOn Inc. (13)First lien senior secured revolving loan L + 5.50% 11/19/2024  314   (4)  (3)  
(0.00
)%
DealerOn Inc. (8)(9)First lien senior secured term loan L + 5.50% 11/19/2024  1,615   1,591   1,601   0.87%
            4,149   4,169   2.26%
IT services                     
Data Source Intermediate Holdings, LLC (13)First lien senior secured revolving loan L + 5.50% 2/11/2025 $123  $(2) $(1)  
(0.00
)%
Data Source Intermediate Holdings, LLC (8)(9)First lien senior secured term loan L + 5.50% 2/11/2025  824   813   815   0.44%
E-Phoenix Acquisition Co. Inc.  (13)First lien senior secured revolving loan L + 5.75% 6/23/2027  75   (1)  (1)  
(0.00
)%
E-Phoenix Acquisition Co. Inc.  (8)First lien senior secured term loan L + 5.75% 6/23/2027  1,445   1,428   1,431   0.78%
FreshAddress, LLC (13)First lien senior secured revolving loan L + 5.50% 10/5/2025  30   0   0   0.00%
FreshAddress, LLC (8)First lien senior secured term loan L + 5.50% 10/5/2025  1,706   1,682   1,685   0.92%
Library Associates, LLC (13)First lien senior secured revolving loan L + 7.00% 8/13/2023  84   (1)  (1)  
(0.00
)%
Library Associates, LLC (8)First lien senior secured term loan L + 7.00% 8/13/2023  258   254   254   0.14%
P&R Dental Strategies, LLC (13)First lien senior secured revolving loan L + 6.50% 12/22/2026  23   0   0   0.00%
P&R Dental Strategies, LLC (8)First lien senior secured term loan L + 6.50% 12/22/2026  660   647   647   0.35%
The Stratix Corporation (13)First lien senior secured delayed draw term loan L + 6.00% 11/19/2027  75   (1)  (1)  
(0.00
)%
The Stratix Corporation (13)First lien senior secured revolving loan L + 6.00% 11/19/2027  75   (1)  (1)  
(0.00
)%
The Stratix Corporation (8)(9)First lien senior secured term loan L + 6.00% 11/19/2027  1,166   1,142   1,142   0.62%
            5,960   5,969   3.24%
Leisure equipment and products                     
MacNeill Pride Group Corp. (8)First lien senior secured delayed draw term loan L + 6.25% 4/22/2026 $392  $389  $390   0.21%
MacNeill Pride Group Corp. (8)First lien senior secured revolving loan L + 6.25% 4/22/2026  262   207   208   0.11%
MacNeill Pride Group Corp. (8)First lien senior secured term loan L + 6.25% 4/22/2026  876   868   870   0.47%
Performance PowerSports Group Purchaser, Inc.  (7)First lien senior secured revolving loan L + 5.75% 10/8/2026  56   48   48   0.03%
Performance PowerSports Group Purchaser, Inc.  (8)First lien senior secured term loan L + 5.75% 10/8/2026  1,490   1,461   1,463   0.79%
    
        2,973   2,979   1.62%
Leisure products                     
Motis Brands, Inc. (9)First lien senior secured delayed draw term loan L + 5.50% 8/31/2026 $79  $77  $77   0.04%
Motis Brands, Inc. (8)First lien senior secured revolving loan L + 5.50% 8/31/2026  56   41   41   0.02%
Motis Brands, Inc. (8)First lien senior secured term loan L + 5.50% 8/31/2026  662   650   651   0.35%
            768   769   0.42%
Life sciences tools and services                     
Aptitude Health Holdings, LLC (8)First lien senior secured revolving loan L + 5.25% 5/3/2026 $267  $22  $22   0.01%
Aptitude Health Holdings, LLC (8)First lien senior secured term loan L + 5.25% 5/3/2026  1,114   1,094   1,096   0.60%
            1,116   1,118   0.61%

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

14
AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of December 31, 2021
(Amounts in thousands)

Company(1)(2)Investment  
Interest
Rate
 
Maturity
Date
 
Principal/
Par Amount(3)
  
Amortized
Cost(4)
  Fair Value  
Percentage of Net
Assets
 
Investments                 
Non-controlled/non-affiliated senior secured debt (5) - Continued                
Machinery                 
Abrasive Technology Intermediate, LLC (13)First lien senior secured revolving loan L + 5.75% 4/30/2026 $173  $(3) $(3)  
(0.00
)%
Abrasive Technology Intermediate, LLC (9)First lien senior secured term loan L + 5.75% 4/30/2026  945   928   929   0.50%
DNS IMI Acquisition Corp (13)First lien senior secured delayed draw term loan L + 5.50% 11/23/2026  75   (1)  (1)  
(0.00
)%
DNS IMI Acquisition Corp (6)First lien senior secured revolving loan L + 5.50% 11/23/2026  18   2   2   0.00%
DNS IMI Acquisition Corp (12)First lien senior secured revolving loan P + 4.50% 11/23/2026  38   5   5   0.00%
DNS IMI Acquisition Corp (8)First lien senior secured term loan L + 5.50% 11/23/2026  1,665   1,632   1,632   0.89%
Industrial Dynamics Company, Ltd. (13)(16)First lien senior secured revolving loan L + 6.00% 8/20/2024  141   (2)  (2)  
(0.00
)%
Industrial Dynamics Company, Ltd. (8)First lien senior secured term loan L + 6.00% 8/20/2024  894   882   880   0.48%
            3,443   3,442   1.87%
Media                     
ALM Media, LLC (13)(18)First lien senior secured revolving loan L + 7.00% 11/25/2024 $971  $(13) $(15)  (0.01)%
ALM Media, LLC (8)First lien senior secured term loan L + 7.00% 11/25/2024  2,616   2,576   2,575   1.40%
Exclusive Concepts, LLC (13)First lien senior secured delayed draw term loan L + 6.00% 12/9/2026  225   (4)  (4)  
(0.00
)%
Exclusive Concepts, LLC (13)First lien senior secured revolving loan L + 6.00% 12/9/2026  23   0   0   0.00%
Exclusive Concepts, LLC (8)First lien senior secured term loan L + 6.00% 12/9/2026  633   620   620   0.34%
Infolinks Media Buyco, LLC (13)First lien senior secured delayed draw term loan L + 6.00% 11/1/2026  39   0   0   0.00%
Infolinks Media Buyco, LLC (13)First lien senior secured revolving loan L + 6.00% 11/1/2026  38   (1)  (1)  
(0.00
)%
Infolinks Media Buyco, LLC (8)First lien senior secured term loan L + 6.00% 11/1/2026  1,164   1,141   1,141   0.62%
The Channel Company, LLC (13)First lien senior secured revolving loan L + 5.25% 11/1/2027  62   (1)  (1)  
(0.00
)%
The Channel Company, LLC (8)First lien senior secured term loan L + 5.25% 11/1/2027  1,547   1,521   1,521   0.83%
            5,839   5,836   3.17%
Metals and mining                     
Copperweld Group, Inc. (8)First lien senior secured revolving loan L + 5.50% 9/27/2024 $456  $252  $252   0.14%
Copperweld Group, Inc. (8)First lien senior secured term loan L + 5.50% 9/27/2024  2,157   2,124   2,126   1.15%
            2,376   2,378   1.29%
Personal products                     
Cosmetic Solutions, LLC (13)First lien senior secured delayed draw term loan L + 5.75% 10/17/2025 $366  $(5) $(4)  
(0.00
)%
Cosmetic Solutions, LLC (13)First lien senior secured revolving loan L + 5.75% 10/17/2025  344   (5)  (4)  
(0.00
)%
Cosmetic Solutions, LLC (8)First lien senior secured term loan L + 5.75% 10/17/2025  2,775   2,733   2,743   1.49%
            2,723   2,735   1.49%
Pharmaceuticals                     
Bio Agri Mix Holdings Inc. (13)(14)First lien senior secured revolving loan C + 6.50% 7/23/2026 C$75  $(1) $(1)  
(0.00
)%
Bio Agri Mix Holdings Inc. (13)(14)First lien senior secured revolving loan C + 6.50% 7/23/2026  30   (1)  0   0.00%
Bio Agri Mix Holdings Inc. (14)First lien senior secured term loan C + 6.50% 7/23/2026 C$1,257   981   978   0.53%
Formulated Buyer, LLC (8)First lien senior secured delayed draw term loan L + 5.25% 9/22/2026  300   24   24   0.01%
Formulated Buyer, LLC (8)(9)First lien senior secured revolving loan L + 5.25% 9/22/2026  188   64   64   0.03%
Formulated Buyer, LLC (8)(9)First lien senior secured term loan L + 5.25% 9/22/2026  465   456   457   0.25%
Maxor National Pharmacy Services, LLC (8)First lien senior secured term loan L + 5.50% 12/6/2027  472   463   463   0.25%
Maxor National Pharmacy Services, LLC (13)First lien senior secured revolving loan L + 5.50% 12/6/2027  84   (2)  (2)  
(0.00
)%
Maxor National Pharmacy Services, LLC (8)First lien senior secured term loan L + 5.50% 12/6/2027  1,334   1,308   1,308   0.71%
            3,292   3,291   1.79%
Professional services                     
Stax Holding Company, LLC (8)(13)First lien senior secured revolving loan L + 5.25% 10/29/2026 $60  $(1) $(1)  
(0.00
)%
Stax Holding Company, LLC (8)First lien senior secured term loan L + 5.25% 10/29/2026  825   813   813   0.44%
            812   812   0.44%
Real estate management and development                    
BBG Intermediate Holdings, Inc. (11)(13)First lien senior secured revolving loan L + 6.50% 1/8/2026 $233  $(4) $(3)  
(0.00
)%
BBG Intermediate Holdings, Inc. (8)First lien senior secured term loan L + 6.50% 1/8/2026  1,667   1,635   1,642   0.89%
            1,631   1,639   0.89%
Semiconductors and semiconductor equipment                    
Altamira Material Solutions, LP (12)(13)First lien senior secured revolving loan P + 4.50% 9/2/2026 $45  $(1) $(1)  
(0.00
)%
Altamira Material Solutions, LP (8)(7)First lien senior secured term loan L + 5.50% 9/2/2026  729   715   716   0.39%
            714   715   0.39%
Software                     
Affinitiv, Inc. (13)First lien senior secured revolving loan L + 6.50% 8/26/2024 $248  $(2) $(2)  
(0.00
)%
Affinitiv, Inc. (8)First lien senior secured term loan L + 6.50% 8/26/2024  2,322   2,296   2,305   1.25%
ShiftKey, LLC (8)First lien senior secured revolving loan L + 6.00% 3/17/2026  120   59   59   0.03%
ShiftKey, LLC (12)First lien senior secured revolving loan P + 5.00% 3/17/2026  120   59   59   0.03%
ShiftKey, LLC (8)First lien senior secured term loan L + 6.00% 3/17/2026  936   923   924   0.50%
    
        3,335   3,345   1.82%
Specialty retail                     
Dykstra's Auto, LLC (8)First lien senior secured delayed draw term loan L+ 5.25% 10/22/2026 $188  $70  $70   0.04%
Dykstra's Auto, LLC (12)First lien senior secured revolving loan P + 4.25% 10/22/2026  38   22   22   0.01%
Dykstra's Auto, LLC (8)First lien senior secured term loan L + 5.25% 10/22/2026  497   487   487   0.26%
Kaizen Auto Care, LLC (8)First lien senior secured delayed draw term loan L + 6.00% 12/22/2023  225   43   43   0.02%
Kaizen Auto Care, LLC (12)First lien senior secured revolving loan P + 5.00% 12/22/2026  38   11   11   0.01%
Kaizen Auto Care, LLC (8)First lien senior secured term loan L + 6.00% 12/22/2023  780   766   765   0.42%
Leonard Group, Inc. (13)First lien senior secured revolving loan L + 6.00% 2/26/2026  197   (3)  (3)  
(0.00
)%
Leonard Group, Inc. (10)First lien senior secured term loan L + 6.00% 2/26/2026  1,256   1,234   1,236   0.67%
Pink Lily Holdings, LLC (8)First lien senior secured revolving loan L + 6.50% 11/16/2027  63   16   16   0.01%
Pink Lily Holdings, LLC (8)First lien senior secured term loan L + 6.50% 11/16/2027  1,371   1,347   1,347   0.73%
            3,993   3,994   2.17%
Textiles, apparel and luxury goods                     
Lakeshirts LLC (8)First lien senior secured revolving loan L + 4.75% 12/23/2024 $398  $314  $314   0.17%
Lakeshirts LLC (8)First lien senior secured term loan L + 4.75% 12/23/2024  1,566   1,548   1,543   0.84%
            1,862   1,857   1.01%
Trading companies and distributors                     
AFC Industries, Inc. (9)First lien senior secured delayed draw term loan L + 6.25% 12/20/2023 $129  $7  $7   0.00%
AFC Industries, Inc. (8)(9)First lien senior secured delayed draw term loan L + 6.25% 4/9/2027  355   350   351   0.19%
AFC Industries, Inc. (8)(20)First lien senior secured revolving loan L + 6.25% 10/9/2026  7   1   1   0.00%
AFC Industries, Inc. (12)(20)First lien senior secured revolving loan P + 5.25% 10/9/2026  124   25   25   0.01%
AFC Industries, Inc. (8)(9)First lien senior secured term loan L + 6.25% 4/9/2027  748   738   740   0.40%
Banner Buyer, LLC (6)First lien senior secured delayed draw term loan L + 5.75% 10/31/2025  1,043   564   569   0.31%
Banner Buyer, LLC (13)First lien senior secured revolving loan L + 5.75% 10/31/2025  370   (4)  (3)  
(0.00
)%
Banner Buyer, LLC (6)First lien senior secured term loan L + 5.75% 10/31/2025  1,385   1,368   1,374   0.75%
Empire Equipment Company, LLC (13)First lien senior secured delayed draw term loan L + 5.50% 1/17/2025  941   (13)  (20)  (0.01)%
Empire Equipment Company, LLC (9)First lien senior secured revolving loan L + 5.50% 1/17/2025  439   119   116   0.06%
Empire Equipment Company, LLC (8)First lien senior secured term loan L + 5.50% 1/17/2025  1,291   1,271   1,264   0.69%
Montway LLC (13)First lien senior secured delayed draw term loan L + 6.25% 11/4/2025  675   (12)  (11)  (0.01)%
Montway LLC (13)First lien senior secured revolving loan L + 6.25% 11/4/2025  150   (3)  (2)  
(0.00
)%
Montway LLC (8)First lien senior secured term loan L + 6.25% 11/4/2025  723   710   711   0.39%
Shearer Supply, LLC (12)First lien senior secured revolving loan P + 4.50% 9/17/2027  113   39   39   0.02%
Shearer Supply, LLC (8)First lien senior secured term loan L + 5.50% 9/17/2027  807   791   793   0.43%
Triad Technologies, LLC (13)First lien senior secured revolving loan L + 4.75% 10/31/2025  314   (4)  (3)  
(0.00
)%
Triad Technologies, LLC (8)(9)First lien senior secured term loan L + 4.75% 10/31/2025  941   928   932   0.51%
    
        6,875   6,883   3.74%
Water utilities                     
Diamondback Buyer, LLC (13)First lien senior secured revolving loan L + 5.50% 7/22/2026 $75  $(1) $(1)  
(0.00
)%
Diamondback Buyer, LLC (9)First lien senior secured term loan L + 5.50% 7/22/2026  855   838   842   0.46%
    
        837   841   0.46%
Total non-controlled/non-affiliated senior secured debt         $151,054  $151,105   82.08%

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

15
AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of December 31, 2021
(Amounts in thousands)

    Interest  Maturity    Principal/     Amortized     
 Percentage
of Net
Company(1)(2)Investment Rate Date   Par Amount(3)   
 Cost(4)
    Fair Value Assets
Investments                   
Non-controlled/non-affiliated sponsor subordinated note                  
Trading companies and distributors                   
Empire Equipment Company, LLCSponsor subordinated note 12.50% + 7.00% PIK7/17/2025       $11   $11 0.01%
Shearer Supply, LLCSponsor subordinated note 12.50% + 7.00% PIK3/17/2028       5   5 0.00%
Total non-controlled/non-affiliated sponsor subordinated note           16   16 0.01%
Total non-controlled/non-affiliated investments           $151,070   $151,121 82.09%
                    
Non-controlled/affiliated investments                   
Multisector holdings                   
Twin Brook Equity Holdings, LLC (23)Equity - 2.09% membership interest           $6,196   7,972 4.33%
Twin Brook Segregated Equity Holdings, LLC (23)Equity - 2.11% membership interest           14   14 0.01%
Total non-controlled/affiliated investments            $6,210   $7,986 4.34%
 Total investments            $157,280   $159,107 86.43%

(1) Unless otherwise indicated, all investments are considered Level 3 investments.
(2) Unless otherwise indicated, all investments represent co-investments made with the Company's affiliates in accordance with the terms of the exemptive relief that the Company received from the U.S. Securities and Exchange Commission.  Refer to Note 6 for further information.
(3) Principal/par amount is denominated in U.S. Dollars ("$") unless otherwise noted, Canadian Dollars ("C$").
(4) The amortized cost represents the original cost adjusted for the amortization of discounts and premiums, as applicable, on debt investments using the effective interest method.
(5) Unless otherwise indicated, the interest rate on the principal balance outstanding for all floating rate loans is indexed to LIBOR and/or an alternate base rate (e.g. prime rate), which typically resets semiannually, quarterly, or monthly at the borrower's option. The applicable base rate may be subject to a floor. The borrower may also elect to have multiple interest reset periods for each loan.  For each of these loans, we have provided the applicable margin over LIBOR based on each respective credit agreement.
(6) The interest rate on these loans is subject to 1 month LIBOR, which as of December 31, 2021 was 0.10%.
(7) The interest rate on these loans is subject to 2 month LIBOR, which as of December 31, 2021 was 0.15%.
(8) The interest rate on these loans is subject to 3 month LIBOR, which as of December 31, 2021 was 0.21%.
(9) The interest rate on these loans is subject to 6 month LIBOR, which as of December 31, 2021 was 0.34%.
(10) The interest rate on these loans is subject to 12 month LIBOR, which as of December 31, 2021 was 0.58%.
(11) The interest rate on these loans is subject to 3 Month CDOR, which as of December 31, 2021 was 0.52%.
(12) The interest rate on these loans is subject to the Prime Rate, which as of December 31, 2021 was 3.25%.
(13) Represents revolvers and delayed draw term loans where the entire balance is unfunded as of December 31, 2021.  The negative fair value is a result of the commitment being valued below par.  Refer to Note 8 for further information.
(14) Represents investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. The status of these assets under the 1940 Act is subject to change. The Company monitors the status of these assets on an ongoing basis. As of December 31, 2021, non-qualifying assets represented approximately 3.37% of the total assets of the Company.
(15) Principal balance includes reserve for letter of credit of $2,834 on which the borrower pays 5.50%.
(16) Principal balance includes reserve for letter of credit of $12,928 on which the borrower pays 6.00%.
(17) Principal balance includes reserve for letter of credit of $10,663 on which the borrower pays 7.50%.
(18) Principal balance includes reserve for letter of credit of $141,677 on which the borrower pays 0.00%.
(19) Principal balance includes reserve for letter of credit of $3,516 on which the borrower pays 6.50%.
(20) Principal balance includes reserve for letter of credit of $4,978 on which the borrower pays 6.25%.
(21) Principal balance includes reserve for letter of credit of $5,410 on which the borrower pays 6.25%.
(22) Principal balance includes reserve for letter of credit of $2,851 on which the borrower pays 6.50%.
(23) As a practical expedient, the Company uses net asset value ("NAV") to determine the fair value of this investment. Consistent with FASB guidance under ASC 820, these investments are excluded from the hierarchical levels.  This represents an investment in an affiliated fund.

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

16
AG Twin Brook BDC, Inc.
Consolidated Schedule of Investments
As of December 31, 2021
(Amounts in thousands)

Additional Information
Foreign currency forward contracts
CounterpartyCurrency PurchasedCurrency SoldSettlement
Unrealized Appreciation/
(Depreciation)
Wells Fargo Bank, National Association
USD 410
CAD 505
6/27/2022
$
11
Wells Fargo Bank, National AssociationUSD 65CAD 806/27/20222
Wells Fargo Bank, National AssociationUSD 73CAD 931/18/2022(1)
Wells Fargo Bank, National AssociationUSD 99CAD 1281/18/2022(2)
Wells Fargo Bank, National AssociationUSD 1,112CAD 1,37510/21/202226
Wells Fargo Bank, National AssociationUSD 49CAD 3910/21/20220
Total $36
Currency Abbreviations:
USD - U.S. Dollar
CAD - Canadian Dollar

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

17

AG Twin Brook BDC, Inc.
NotesNotes to Consolidated Financial Statements (Unaudited)


Note 1.  Organization

AG Twin Brook BDC, Inc. (the “Company”), formerly known as 1889 BDC, Inc., is a Delaware corporation which was formed on February 4, 2016.  The Company has elected to be regulated as a Business Development Company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”).  In addition, for tax purposes, the Company has elected to be treated as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).  The Company seeks to provide risk-adjusted returns and current income to investors by investing primarily in senior secured debt of middle market companies.  The Company may also invest opportunistically in other parts of the capital structure, including senior secured stretch and unitranche facilities, second lien loans, mezzanine and mezzanine-related loans, and equity investments, as well as select other subordinated instruments either directly or through acquisitions in the secondary market.
AG Twin Brook Manager, LLC (the “Advisor”), a wholly-owned subsidiary of Angelo, Gordon & Co., L.P. (“Angelo Gordon”), serves as the investment adviser of the Company.  The Advisor is registered as an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940.
Twin Brook Capital Partners, LLC (“TBCP”) is an affiliate of Angelo Gordon and provides collateral agent, administrative and other services with respect to certain investments held by the Company.  Twin Brook Capital Servicer, LLC (“TBCS”) is an affiliate of Angelo Gordon and provides loan servicing with respect to certain investments held by the Company.
The Company conducts private offerings (each, a “Private Offering”), where investors make a capital commitment to purchase shares of the Company’s common stock pursuant to a subscription agreement entered into with the Company. Investors will be required to make capital contributions to purchase shares of the Company’s common stock each time the Company delivers a drawdown notice. The initial closing of the Private Offering occurred on July 19, 2019 (the “Initial Closing”), and additional closings of the Private Offering are expected to occur from time to time as determined by the Company.  Upon the earlier to occur of (i) a Qualified IPO (as defined below), and (ii) the five year anniversary of the Initial Closing, investors will be released from any further obligation to purchase additional shares, subject to certain exceptions. A “Qualified IPO” is an initial public offering (“IPO”) of the Company’s common stock that results in an unaffiliated public float of at least the lower of (A) $60 million and (B) 17.5% of the aggregate capital commitments received prior to the date of such initial public offering.
The Company commenced its loan origination and investment activities with the initial drawdown from investors in the Private Offering on July 29, 2019 (the commencement of operations).  The Company made its first portfolio company investment in August 2019.


Note 2.  Significant Accounting Policies
Basis of Accounting
The Company’s consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”).  The Company is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies.  These consolidated financial statements reflect adjustments that in the opinion of management are necessary for the fair statement of the financial position and results of operations for the periods presented herein.  The Company commenced operations on July 29, 2019 and its fiscal year ends on December 31.
31, 2022.


1418
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) –— Continued

The interim consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 6 of Regulation S-X. Accordingly, certain disclosures accompanying the annual consolidated financial statements prepared in accordance with U.S. GAAP are omitted. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial statements for the interim period presented, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2021.2022.


Principles of Consolidation
The Company conducts certain of its activities through its wholly-owned subsidiaries Twin Brook Capital Funding XVIII, LLC and Twin Brook Equity XVIII Corp.  The Company consolidates subsidiaries that are controlled by the Company.  All intercompany balances and transactions have been eliminated in consolidation.


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

Cash
Cash is comprised of cash on deposit with major financial institutions.  The Company places its cash with high credit quality institutions to minimize credit risk exposure.

Investment Related Transactions, Revenue Recognition and Expenses
Investment transactions and the related revenue and expenses are recorded on a trade-date basis.  Realized gains and losses on investment transactions are determined using the specific identification method.  All costs associated with consummated investments are included in the cost of such investments.  Broken deal expenses incurred in connection with investment transactions which are not successfully consummated are expensed as a component of “Other” expense on the consolidated statement of operations.
Interest income and interest expense are recognized on an accrual basis.  Interest income on debt instruments is accrued and recognized for those issuers who are currently paying in full or expected to pay in full.  For those issuers who are in default or expected to default, interest is not accrued and is only recognized when received.  Interest income and expense include discounts accreted and premiums amortized on certain debt instruments as determined in good faith by the Company and calculated using the effective interest method.  Loan origination fees, original issue discounts and market discounts or premiums are capitalized as part of the underlying cost of the investments and accreted or amortized over the life of the investment as interest income.
Paydown gains and losses on investments in debt instruments are reported in “Interest” income on the consolidated statement of operations.  Interest received in-kind, computed at the contractual rate specified in each investment agreement, is added to the principal balance of the investment and reported as “Interest” income on the consolidated statement of operations.  The Company records dividend income from private securities pursuant to the terms of the respective investments.


15
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) – Continued

The Company may earn various fees during the life of the loans.  Such fees include, but are not limited to, syndication, commitment, administration, prepayment and amendment fees, some of which are paid to the Company on an ongoing basis.  These fees and any other income are recognized as earned as a component of "Other" income on the consolidated statement of operations.


19
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued
Investments at Fair Value
The Company applies Financial Accounting Standards Board Accounting Standards Codification Topic 820, Fair Value Measurements (“ASC 820”), as amended, which establishes a framework for measuring fair value in accordance with U.S. GAAP and required disclosures of fair value measurements.  ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.  In accordance with ASC 820, the Companydiscloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value.  The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements).  ASC 820 establishes three levels of the fair value hierarchy as follows:


Level 1Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date;


Level 2Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active;


Level 3Inputs that are unobservable.
Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk.  Inputs may include price information, volatility statistics, interest rates, specific and broad credit data, liquidity statistics, and other factors.  A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement; however, the determination of what constitutes “observable” requires significant judgment by the Company.  The Company considers observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.  The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company’s perceived risk of that instrument.
The availability of observable inputs can vary from product to product and is affected by a wide variety of factors, including for example, the type of product, whether the product is new and not yet established in the marketplace, the liquidity of markets and other characteristics particular to the transaction.  To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment.  Accordingly, the degree of judgment exercised by the Company, the Company’s Board, of Directors (the “Board”), and the Advisor in determining fair value is greatest for instruments categorized in Level 3.  In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.
Investments in investment funds include vehicles structured for the purpose of investing in privately held common and preferred equity interests. Fair values are generally determined utilizing the NAV supplied by, or on behalf of, management of each investment fund, which is net of management and incentive fees or allocations charged by the investment fund, if applicable, and is in accordance with the “practical expedient”, as defined by FASB Accounting Standards Update (“ASU”) 2009-12, Investments in Certain Entities that Calculate Net Asset Value per Share. NAVs received by, or on behalf of, management of

16
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) – Continued

each investment fund are based on the fair value of the investment funds’ underlying investments in accordance with policies established by management of each investment fund, as described in each of their financial statements and offering memorandum. Withdrawals and distributions from investments in investment funds are at the discretion of the Advisor and may depend on the liquidation of underlying assets. Investments which are valued using NAV as a practical expedient are excluded from the above hierarchy.

20
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued
The Board oversees and supervises a multi-step valuation process, which includes, among other procedures, the following:
The valuation process begins with each investment being initially valued by the investment professionals responsible for the portfolio investment in conjunction with the portfolio management team.

The Advisor’s management reviews the preliminary valuations with the investment professionals.  Agreed upon valuation recommendations are presented to the Board.

The Board reviews the recommended valuations and determines the fair value of each investment; valuations that are not based on readily available market quotations are valued in good faith, based on, among other things, the input of the Advisor and, where applicable, other third parties.
When determining the fair value of Level 3 investments, the Company may take into account the following factors, where relevant: recent transactions, the enterprise value of the underlying company, the nature and realizable value of any collateral, the underlying company’s ability to make payments and its earnings and discounted cash flows, the markets in which the underlying company does business, financial covenants, the seniority of the financial instrument in the capital structure of the company, comparisons to publicly traded securities, and changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made and other relevant factors. The primary method for determining enterprise value uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s net income before net interest expense, income tax expense, depreciation and amortization (“EBITDA”). The enterprise value analysis is performed to determine the value of equity investments and to determine if debt investments are credit impaired. If debt investments are credit impaired, the Company will use the enterprise value analysis or a liquidation basis analysis to determine fair value. For debt investments that are not determined to be credit impaired, the Company uses a market interest rate yield analysis to determine fair value.
The Company’s investments trade infrequently and when they are traded, the price may be unobservable, and as a result, multiple external pricing sources may not be available.  In such instances, the Company may use an internal pricing model as either a corroborating or sole data point in determining the price.  Pricing models take into account the contractual terms of the financial instrument, as well as relevant inputs, including where applicable, equity prices, interest rate yield curves, credit curves, correlation, and the creditworthiness of the counterparty.  The Company generally engages third party firm(s) to assist in validating certain financial instruments where multiple external prices cannot be obtained.  The third party firm(s) either independently determine prices or assess the reasonableness of the Company’s prices.  The analyses provided by such third party firm(s) are reviewed and considered by the Company.  As part of the risk management process, the Company reviews and analyzes the prices obtained from external pricing sources to evaluate their reliability and accuracy, which includes identifying and excluding vendor prices and broker quotations that the Company believes does not reflect fair value.  In addition, the Advisor’s valuation committee meets regularly and engages in ongoing reviews of the valuation processes and procedures including reviews of methodology, ongoing accuracy, source quality and independence. Such reviews include, but are not limited to, comparison of current vendor prices and broker quotations against ongoing daily trading activity, vendor due diligence, and back testing.

17
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) – Continued

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure.  Therefore, even when market assumptions are not readily available, the assumptions are set to reflect those that the Company believes market participants would use in pricing the asset or liability at the measurement date.

21
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued
Good Faith Determinations of Fair Value (“Rule 2a-5”) under the 1940 Act was adopted by SEC in December 2020 and establishes requirements for determining fair value good faith for purposes of the 1940 Act. The company is evaluating the impact of adopting Rule 2a-5 on the financial statements and intends to comply with the new rule’s requirements on or before the compliance date in September 2022.

Foreign Currency Translation
Amounts denominated in foreign currencies are translated into USD on the following basis: (i) investments and other assets and liabilities denominated in foreign currencies are translated into USD based upon currency exchange rates effective on the last business day of the period; and (ii) purchases and sales of investments, borrowings and repayments of such borrowings, income, and expenses denominated in foreign currencies are translated into USD based upon currency exchange rates prevailing on the transaction dates.
The Company does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included within net realized and unrealized gain (loss) on investments on the consolidated statement of operations. Unrealized gains and losses on foreign currency holdings and non-investment assets and liabilities attributable to the changes in foreign currency exchange rates are included in the net change in unrealized gain (loss) on foreign currency translation on the consolidated statements of operations. Net realized gains and losses on foreign currency holdings and non-investment assets and liabilities attributable to changes in foreign currency exchange rates are included in net realized gain (loss) on foreign currency transactions on the consolidated statements of operations.
Foreign security and currency translations may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices more volatile than those of comparable U.S. companies or U.S. government securities.
Foreign Currency Forward Contracts
The Company may enter into foreign currency forward contracts to reduce the Company’s exposure to foreign currency exchange rate fluctuations in the value of foreign currencies. In a foreign currency forward contract, the Company agrees to receive or deliver a fixed quantity of one currency for another, at a pre-determined price at a future date. Forward foreign currency contracts are marked-to-market at the applicable forward rate. Unrealized gain (loss) on foreign currency forward contracts are recorded on the consolidated statements of assets and liabilities by counterparty on a gross basis, not taking into account collateral posted which is recorded separately, if applicable. Notional amounts of foreign currency forward contract assets and liabilities are presented separately on the consolidated schedules of investments. Purchases and settlements of foreign currency forward contracts having the same settlement date and counterparty are generally settled net and any realized gains or losses are recognized on the settlement date.
The Company does not utilize hedge accounting and as such, the Company recognizes its derivatives at fair value with changes in the net unrealized gain (loss) on foreign currency forward contracts recorded on the consolidated statements of operations.

Offering Costs
Offering costs in connection with the offering of common shares of the Company are capitalized as a deferred charge and amortized to expense on a straight-line basis over 12 months from the commencement of operations.  These expenses consist primarily of legal fees and other costs incurred with the Company’s share offerings, the preparation of the Company’s registration statement, and registration fees.


1822
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) –— Continued
.
Deferred Financing Costs
Deferred financing costs consist of financing costs incurred in connection with obtaining the Company’s subscription facility.  Such financing costs are capitalized and amortized over the life of the facility utilizing the straight-line method.  For the three and nine months ended September 30, 2021,March 31, 2022, the Company amortized approximately $58,000 and $167,000$47,000 of financing costs respectively, which have been included in “Interest” expense on the consolidated statements of operations. For the three and nine months ended September 30, 2020,March 31, 2021, the Company paid approximately $23,000 and amortized approximately $40,000 and $94,000$53,000 of financing costs respectively, which have been included in “Interest” expense on the consolidated statements of operations.

Deferred Income
Deferred income consists of annual administrative agent fees received in connection with the servicing of certain loan investments.  Such fees are deferred when received and recognized as earned over the applicable period.  For the three and nine months ended September 30, 2021,March 31, 2022, the Company received approximately $47,000 and $118,000$59,000 of agent fees, respectively.fees. During the three and nine months ended September 30, 2021,March 31, 2022, approximately $48,000 and $131,000$68,000 of agent fees have been recognized as earned and included in “Other” income on the consolidated statements of operations. For the three and nine months ended September 30, 2020,March 31, 2021, the Company received approximately $46,000 and $70,000$40,000 of agent fees, respectively.fees. During the three and nine months ended September 30, 2020,March 31, 2021, approximately $23,000 and $61,000$37,000 of agent fees respectively, have been recognized as earned and included in “Other” income on the consolidated statements of operations.

Income Taxes
The Company has elected to be regulated as a BDC under the 1940 Act.  The Company also has elected to be treated as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended.  As a RIC, the Company generally will not have to pay corporate-level U.S. federal income taxes on any ordinary income or capital gains that it distributes timely to its shareholders as dividends.  To the extent the Company continues to qualify as a RIC, any tax liability related to income earned and distributed by the Company represents obligations of the Company’s investors and will not be reflected in the consolidated financial statements of the Company.
To continue to qualify as a RIC, the Company must, among other things, meet certain source-of-income and asset diversification requirements. In addition, to continue to qualify for RIC tax treatment, the Company must distribute to its shareholders, for each taxable year, at least 90% of its “investment company taxable income” for that year, which is generally its ordinary income plus the excess of its realized net short-term capital gains over its realized net long-term capital losses. The Company will generally be subject to a 4% non-deductible U.S. federal excise tax on certain undistributed income or gains in respect of any calendar year, unless it distributes annually an amount at least equal to the sum of (i) 98% of its net ordinary income (taking into account certain deferrals and elections) for the calendar year, (ii) 98.2% of its capital gain net income (adjusted for certain ordinary losses) for the one-year period ending on October 31 in such calendar year and (iii) any net ordinary income and capital gain net income recognized, but not distributed, in preceding years. The Company, at its discretion, may carry forward taxable income for distribution in the following taxable year and pay the applicable U.S. federal excise
19
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) – Continued

tax.  For the ninethree months ended September 30,March 31, 2022 and 2021, and 2020, the Company did not0t accrue any U.S. federal excise tax.


The Company conducts certain of its activities through its wholly-owned subsidiary, Twin Brook Equity XVIII Corp., a Delaware C corporation. Twin Brook Equity XVIII Corp. is treated as a corporation for United States federal income tax purposes and is subject to U.S. federal, state or local income tax. For the ninethree months ended September 30,March 31, 2022 and 2021, and 2020, the Company did not0t accrue any U.S. federal tax expense.expense related to Twin Brook Equity XVIII Corp.


The Company evaluates tax positions taken or expected to be taken in the course of preparing its financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reserved and recorded as a tax benefit or expense in the current year.  All penalties and interest associated with income taxes 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, on-going analyses of tax laws, regulations and interpretations thereof.  There were no tax penalties, and no0 interest associated with income taxes was incurred through September 30, 2021.March 31, 2022.

23
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued
Loan Syndications and Participations
The Company may originate certain loans and then syndicate all or a portion of those loans to a third party. For the three and nine months ended September 30, 2021,March 31, 2022, the Company earned approximately $46,000 and $170,000, respectively,$81,000 of syndication and other origination fee income, which is included in “Other” income on the consolidated statement of operations. For the three and nine months ended September 30, 2020,March 31, 2021, the Company earned approximately $44,000 and $137,000, respectively,$17,000 of syndication and other origination fee income, which is included in “Other” income on the consolidated statement of operations.
The Company follows the guidance in Accounting Standards Codification (“ASC”) Topic 860 Transfers and Servicing when accounting for loan participations and other partial loan sales. Such guidance requires a participation or other partial loan sale to meet the definition of a “participating interest,” as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales that do not meet the definition of a participating interest remain on the consolidated statement of assets and liabilities and the proceeds are recorded as a secured borrowing until the definition is met. Secured borrowings are carried at fair value to correspond with the related investments, which are carried at fair value. There were no participations that were accounted for as secured borrowings during the period.

Distributions
Distributions to common stockholders are recorded on the record date. The amount to be distributed, if any, is determined by the Board each quarter. The Company intends to distribute net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually out of the assets legally available for such distributions. However, the Company may decide in the future to retain such capital gains for investment, incur a corporate-level tax on such capital gains, and elect to treat such capital gains as deemed distributions to stockholders.


Note 3.  Investments
Under the 1940 Act, the Company is required to separately identify non-controlled investments where it owns 5% or more of a portfolio company’s outstanding voting securities and/or had the power to exercise control over the management or policies of such portfolio company as investments in “affiliated” companies. In addition, under the 1940 Act, the Company is required to separately identify investments where it owns more than 25% of a portfolio company’s outstanding voting securities and/or had the power to exercise control over the management or policies of such portfolio company as investments in

20
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) – Continued

“controlled” “controlled” companies. Under the 1940 Act, "non-affiliated investments" are defined as investments that are neither controlled investments nor affiliated investments. Detailed information with respect to the Company’s non-controlled, non-affiliated; non-controlled, affiliated; and controlled affiliated investments is contained in the consolidated financial statements, including the consolidated schedule of investments. The information in the tables below is presented on an aggregate portfolio basis, without regard to whether they are non-controlled, non-affiliated; non-controlled, affiliated; or controlled affiliated investments.


24
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued
Investments at fair value and amortized cost consisted of the following as of September 30, 2021March 31, 2022 and December 31, 2020:2021:

 

   March 31, 2022		  

   December 31, 2021		 
(Amounts in thousands)Amortized Cost  Fair Value  Amortized Cost  Fair Value 
First lien senior secured debt$153,473  $153,712  $151,054  $151,105 
Sponsor subordinated note 16   16   16   16 
Investment in affiliated funds 6,440   8,465   6,210   7,986 
Total investments$159,929  $162,193  $157,280  $159,107 
  

September 30, 2021		  

   December 31, 2020		 
(Amounts in thousands) Amortized Cost  Fair Value  Amortized Cost  Fair Value 
First lien senior secured debt $105,693  $105,645  $76,415  $75,805 
Sponsor subordinated note  15   15   7   7 
Investment in affiliated fund  4,444   5,736   3,201   3,721 
Total investments $110,152  $111,396  $79,623  $79,533 


The industry composition of investments based on fair value as of March 31, 2022 and December 31, 2021 was as follows:


 March 31, 2022  December 31, 2021 
Aerospace and defense  1.3%  1.3%
Auto components  1.3%  1.4%
Chemicals  4.5%  4.6%
Commercial services and supplies  5.0%  3.7%
Construction and engineering  1.7%  1.6%
Containers and packaging  3.9%  3.9%
Distributors  0.3%  0.3%
Diversified consumer services  8.6%  8.9%
Electrical equipment  0.8%  0.8%
Electronic equipment, instruments and components  1.4%  1.4%
Food and staples retailing  2.3%  2.3%
Food products  1.0%  0.9%
Gas utilities  0.9%  0.9%
Health care equipment and supplies  2.6%  2.0%
Health care providers and services  22.6%  24.8%
Health care technology  1.2%  1.1%
Household durables  1.8%  1.8%
Internet and direct marketing retail  2.6%  2.6%
IT services  3.6%  3.8%
Leisure equipment and products  1.9%  1.9%
Leisure products  0.5%  0.5%
Life sciences tools and services  0.7%  0.7%
Machinery  2.1%  2.2%
Media  3.8%  3.7%
Metals and mining  1.6%  1.5%
Multisector holdings  5.2%  5.0%
Personal products  1.9%  1.7%
Pharmaceuticals  2.0%  2.1%
Professional services  0.5%  0.5%
Real estate management and development  1.1%  1.0%
Semiconductors and semiconductor equipment  0.4%  0.5%
Software  2.0%  2.1%

2125
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) –— Continued

The industry composition of investments based on fair value as of September 30, 2021 and December 31, 2020 was as follows:

 March 31, 2022  December 31, 2021 
Specialty retail  2.6%  2.5%
Textiles, apparel and luxury goods  1.2%  1.2%
Trading companies and distributors  4.6%  4.3%
Water utilities  0.5%  0.5%
Total  100.0%  100.0%


  September 30, 2021   December 31, 2020 
Aerospace and defense 1.9% 2.7%
Chemicals 6.2% 8.4%
Commercial services and supplies 2.6% 7.0%
Construction and engineering 0.5% – 
Containers and packaging 5.6% 7.0%
Distributors 0.5% 1.5%
Diversified consumer services 8.9% 9.8%
Electronic equipment, instruments and components 1.3% 2.0%
Food and staples retailing 1.3% 0.9%
Food products 1.3% 1.3%
Gas utilities 1.2% 1.6%
Health care equipment and supplies 2.8% 0.8%
Health care providers and services 23.8% 24.0%
Health care technology 1.6% 1.6%
Household durables 2.5% – 
Internet and direct marketing retail 2.7% 2.5%
IT services 3.0% 3.4%
Leisure equipment and products 1.7% – 
Life sciences tools and services 1.0% – 
Machinery 1.6% 1.1%
Media 2.4% 3.4%
Metals and mining 2.1% 2.6%
Multisector holdings 5.2% 4.7%
Personal products 2.5% 3.5%
Pharmaceuticals 2.0% – 
Real estate management and development 1.5% – 
Software 3.0% 2.9%
Specialty retail 1.1% – 
Textiles, apparel and luxury goods 1.5% 2.0%
Trading companies and distributors 5.9% 5.3%
Water utilities 0.8% – 
Total 100.0% 100.0%


As of September 30, 2021, 98.8%March 31, 2022, 99.0% of investments held were based in the United States and 1.2%1.0% were based in Canada. All investments held asAs of December 31, 20202021, 99.0% of investments were based in the United States.States and 1.0% were based in Canada.


22
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) – Continued

Note 4.  Fair Value of Investments
Fair Value Disclosures
The following tables present the fair value hierarchy of financial instruments as of September 30, 2021 and DecemberMarch 31, 2020:2022:

  Assets at Fair Value as of September 30, 2021 
(Amounts in thousands) Level 1  Level 2  Level 3  Total 
First lien senior secured debt $–  $–  $105,645  $105,645 
Sponsor subordinated note  –   –   15   15 
Foreign currency forward contracts  –   8   –   8 
Total $–  $8  $105,660  $105,668 
Investments measured at net asset value(1)
              5,736 
Total financial instruments, at fair value             $111,404 


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

 
 
   Assets at Fair Value as of December 31, 2020
 Assets at Fair Value as of March 31, 2022 
(Amounts in thousands) Level 1  Level 2  Level 3  Total Level 1  Level 2  Level 3  Total 
First lien senior secured debt $–  $–  $75,805
  $75,805 $0  $0  $153,712  $153,712 
Sponsor subordinated note  –   –   7
   7 0  0  16  16 
Foreign currency forward contracts  0   21   0   21 
Total $–  $–  $75,812  $75,812 $0  $21  $153,728  $153,749 
Investments measured at net asset value(1)
              3,721           8,465 
Total financial instruments, at fair value             $79,533          $162,214 
(1) Certain investments that are measured at fair value using NAV have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.


  Liabilities at Fair Value as of March 31, 2022
 
(Amounts in thousands) Level 1  Level 2  Level 3  Total 
Foreign currency forward contracts $
0
  $
3
  $
0
  $
3
 

The following tables present the fair value hierarchy of financial instruments as of December 31, 2021:

  Assets at Fair Value as of December 31, 2021 
(Amounts in thousands) Level 1  Level 2  Level 3  Total 
First lien senior secured debt $0  $0  $151,105  $151,105 
Sponsor subordinated note  0   0   16   16 
Net foreign currency forward contracts  0   36   0   36 
Total $0  $36  $151,121  $151,157 
Investments measured at net asset value(1)
              7,986 
Total financial instruments, at fair value             $159,143 

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

26
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued
The following tables present changes in the fair value of investments for which Level 3 inputs were used to determine the fair value for the three and nine months ended September 30, 2021March 31, 2022 and 2020:
2021:

  Level 3 Assets at Fair Value for the Three Months Ended March 31, 2022*       
 (Amounts in thousands) 
Balance
1/1/2022
  Purchases and Drawdowns  Sales and Paydowns  Other**  Realized Gains/ (Losses)  Change in Unrealized Appreciation/(Depreciation)  
Balance
03/31/2022
  
Change in
Unrealized
Appreciation/
(Depreciation)
for Level 3
Assets Still
Held as of
03/31/2022
 
First lien senior secured debt $151,105  $13,043  $(10,888) $229  $35  $188  $153,712  $176 
Sponsor subordinated notes  16   0   0   0   0   0   16   0 
                                     Total $151,121  $13,043  $(10,888) $229  $35  $188  $153,728  $176 
  Level 3 Assets at Fair Value for the Three Months Ended September 30, 2021*         
 (Amounts in thousands) 
Balance
7/1/2021
  Purchases and Drawdowns  Sales and Paydowns  Other**  Realized Gains/ (Losses)  Change in Unrealized Appreciation/(Depreciation)  
Balance
9/30/2021
  Change in Unrealized Appreciation/ (Depreciation) for Level 3 Assets Still Held as of 9/30/2021 
First lien senior secured debt $92,947  $19,865  $(7,449) $162  $35  $85  $105,645  $85 
Sponsor subordinated note  8   4   -   1   -   2   15   2 
                                     Total $92,955  $19,869  $(7,449) $163  $35  $87  $105,660  $87 

*   Gains and losses are included in their respective captions in the consolidated statement of operations.
** Includes accretion, paydown gains/(losses) and interest received in-kind on debt instruments, where applicable.

  Level 3 Assets at Fair Value for the Nine Months Ended September 30, 2021*         
 (Amounts in thousands) 
Balance
1/1/2021
  Purchases and Drawdowns  Sales and Paydowns  Other**  
Realized Gains/
(Losses)
  Change in Unrealized Appreciation/(Depreciation)  
Balance
9/30/2021
  Change in Unrealized Appreciation/ (Depreciation) for Level 3 Assets Still Held as of 9/30/2021 
First lien senior secured debt $75,805  $53,933  $(25,252) $475  $122  $562  $105,645  $562 
Sponsor subordinated note  7   6   -   2   -   -   15   - 
                                     Total $75,812  $53,939  $(25,252) $477  $122  $562  $105,660  $562 

*   Gains and losses are included in their respective captions in the consolidated statement of operations.
** Includes accretion, paydown gains/(losses) and interest received in-kind on debt instruments, where applicable.

23
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) – Continued

  Level 3 Assets at Fair Value for the Three Months Ended September 30, 2020*         
 (Amounts in thousands) 
Balance
7/1/2020
  Purchases and Drawdowns  Sales and Paydowns  Other**  Realized Gains/ (Losses)  Change in Unrealized Appreciation/(Depreciation)  
Balance
9/30/2020
  Change in Unrealized Appreciation/ (Depreciation) for Level 3 Assets Still Held as of 9/30/2020 
First lien senior secured debt $59,010  $4,117  $(1,716) $65  $1  $489  $61,966  $489 
Sponsor subordinated note  6   -   -   -   -   1   7   1 
                                     Total $59,016  $4,117  $(1,716) $65  $1  $490  $61,973  $490 

*   Gains and losses are included in their respective captions in the consolidated statement of operations.
** Includes accretion, paydown gains/(losses) and interest received in-kind on debt instruments, where applicable.

  Level 3 Assets at Fair Value for the Nine Months Ended September 30, 2020*         
 (Amounts in thousands) 
Balance
1/1/2020
  Purchases and Drawdowns  Sales and Paydowns  Other**  Realized Gains/ (Losses)  Change in Unrealized Appreciation/(Depreciation)  
Balance
9/30/2020
  Change in Unrealized Appreciation/ (Depreciation) for Level 3 Assets Still Held as of 9/30/2020 
First lien senior secured debt $38,156  $34,119  $(9,550) $200
  $5  $(964)
 $61,966  $(964)
Sponsor subordinated note  –   6
   –   –   –   1   7   1 
                                     Total $38,156  $34,125  $(9,550) $200
  $5  $(963
)
 $61,973  $(963)


* Gains and losses are included in their respective captions in the consolidated statement of operations.
** Includes accretion, paydown gains/(losses) and interest received in-kind on debt instruments, where applicable.

Debt Not Carried at Fair Value

The fair value of the Company’s subscription facility, which would have been categorized as Level 3 within the fair value hierarchy as of September 30, 2021 and December 31, 2020, approximates its carrying value.
  Level 3 Assets at Fair Value for the Three Months Ended March 31, 2021*       
 (Amounts in thousands) 
Balance
1/1/2021
  Purchases and Drawdowns  Sales and Paydowns  Other**  Realized Gains/ (Losses)  Change in Unrealized Appreciation/(Depreciation)  
Balance
03/31/2021
  Change in Unrealized Appreciation/ (Depreciation) for Level 3 Assets Still Held as of 03/31/2021 
First lien senior secured debt $75,805  $13,930  $(9,572) $175  $18  $161  $80,517  $161 
Sponsor subordinated note  7   2   0   1   0   0   9   (1)
                                     Total $75,812  $13,932  $(9,572) $176  $18  $161  $80,526  $160 

Significant Unobservable Inputs
In accordance with ASC 820, the following tables provide quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of September 30, 2021March 31, 2022 and December 31, 2020.2021.  The table is not intended to be all-inclusive but instead capture the significant unobservable inputs relevant to the Company’s determination of fair value.
  Fair Value         Impact to Valuation
  as of ValuationSignificant    Weighted from an Increase
Asset Class 3/31/22 TechniquesUnobservable Inputs Input Ranges  
Average (1)
 in Input
  (Amounts in thousands)                  
First lien senior secured debt $149,534 Discounted cash flowYield  7.8% - 12.6%  9.2%Decrease
Sponsor subordinated notes  16 Market comparableLTM EBITDA multiple  6.1x - 7.6x  7.1
x
Increase
  $149,550                

 Fair Value        Impact to Valuation Fair Value        Impact to Valuation
 as of ValuationSignificant    Weighted from an Increase as of ValuationSignificant    Weighted from an Increase
Asset Class 9/30/21 TechniquesUnobservable Inputs Input Ranges  Average in Input 12/31/21 TechniquesUnobservable Inputs Input Ranges  
Average (1)
 in Input
 (Amounts in thousands)              
(Amounts in thousands)
                
First lien senior secured debt $93,788 Discounted cash flowYield 6.5% - 11.8% 8.0%Decrease $104,516 Discounted cash flowYield  6.7% - 11.5%  8.2%Decrease
Sponsor subordinated note 10 Market comparableLTM EBITDA multiple 7.0x   Increase  16 Market comparableLTM EBITDA multiple  7.0
x
    Increase
 $93,798              $104,532                   

(1) Weighted average is calculated by weighing the significant unobservable input by the relative fair value of each investment in the category.

  Fair Value         Impact to Valuation
  as of ValuationSignificant    Weighted from an Increase
Asset Class 12/31/2020
 TechniquesUnobservable Inputs Input Ranges  Average in Input
      (Amounts in thousands)           
First lien senior secured debt $64,571 Discounted cash flowYield  6.3% - 11.4%  8.0%Decrease
Sponsor subordinated note  7
 Market comparableLTM EBITDA multiple  7.0x    Increase
  $64,578                


The Company’s other Level 3 investments have been valued primarily using recent transactions.  The significant unobservable input used in the discounted cash flow is the yield.  The yield is used to discount the estimated future cash flows expected to be received from the underlying investment.  The Company considers the portfolio company performance since close, the leverage used by the portfolio company relative to its total enterprise value and other risks associated with an investment in determining the yield.  The significant unobservable input used in the market comparable is the latest twelve month (“LTM”)“LTM” EBITDA multiple.


2427
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) –— Continued

Note 5.  Subscription Facility
In accordance with the 1940 Act, the Company can borrow amounts such that its asset coverage, as defined in the 1940 Act, is at least 200% after such borrowings, subject to certain limitations.  There were no outstanding borrowings as of September 30, 2021March 31, 2022 and December 31, 2020.2021.


On August 14, 2019, the Company entered into a revolving credit facility (the “Subscription Facility”) with Wells Fargo Bank, National Association (the “Lender”).  The Subscription Facility enables the Company to request loans from the Lender up to a maximum commitment of $15 million.  The borrowings under the Subscription Facility are collateralized by the eligible unfunded capital commitments of investors in the Company.  The total amount available under the Subscription Facility may be reduced as a result of decreases in the unfunded capital commitments of investors in the Company as well as other provisions of the Subscription Facility.
Borrowings under the Subscription Facility bear interest at either (i) LIBOR plus the applicable margin of 1.50%, if the borrowing is a LIBOR Rate Loan or (ii) the Prime Rate plus the applicable margin of 0.50%, if the borrowing is a Reference Rate Loan. As of September 30, 2021March 31, 2022 and December 31, 2020,2021, there were no outstanding borrowings.  In addition, the Company pays an unused commitment fee of 0.20% per annum on the daily unused commitments of the Lender.  The maturity date of the Subscription Facility is August 12, 2022.
The Subscription Facility contains representations, warranties, covenants, including financial covenants, events of default and indemnities that are customary for agreements of this type.  As of September 30, 2021March 31, 2022 and December 31, 2020,2021, the Company is in compliance in all material respects with such covenants.
Debt obligations consisted of the following as of September 30, 2021:March 31, 2022:

 As of September 30, 2021       

      As of March 31, 2022		 
(Amounts in thousands) Maximum Principal Amount Committed  Principal Amount Outstanding  
Principal Amount Available(1)
  Carrying Value  Maximum Principal Amount Committed  Principal Amount Outstanding  
Principal Amount Available(1)
  Carrying Value 
Subscription facility $15,000  $-  $10,098  $-  $15,000  $0  $3,564  $0 
Total debt $15,000  $-  $10,098  $-  $15,000  $0  $3,564  $0 
(1)  The amount available reflects any limitations related to the Subscription Facility’s borrowing base.
Debt obligations consisted of the following as of December 31, 2020
2021:
    As of December 31, 2020
 

      As of December 31, 2021		 
(Amounts in thousands) Maximum Principal Amount Committed  
Principal
Amount Outstanding
  
Principal Amount Available(1)
  Carrying Value  Maximum Principal Amount Committed  Principal Amount Outstanding  
Principal Amount Available(1)
  Carrying Value 
Subscription facility $15,000  $-

 $13,900  $-

 $15,000  $0  $3,564  $0 
Total debt $15,000  $-

 $13,900  $-

 $15,000  $0  $3,564  $0 
(1)  The amount available reflects any limitations related to the Subscription Facility’s borrowing base.


2528
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) –— Continued

For the three and nine months ended September 30,March 31, 2022 and 2021, and 2020,the components of interest expense were as follows:
  
Three Months Ended
  
Three Months Ended
 
(Amounts in thousands) March 31, 2022  March 31, 2021 
Interest expense $8  $7 
Amortization of deferred financing costs  47   53 
Total interest expense $55  $60 
Average interest rate  N/A   3.54%
Average daily borrowings  N/A  $56 


  Three Months  Three Months       
  Ended  Ended  Nine Months Ended  Nine Months Ended 
(Amounts in thousands) September 30, 2021  September 30, 2020  September 30, 2021  September 30, 2020 
Interest expense $8  $27  $23  $189 
Amortization of deferred financing costs  58   40   167 
  94 
Total interest expense $66  $67  $190  $283 
Average interest rate  1.77%  2.08%  2.46%  2.88%
Average daily borrowings $105  $217  $54  $5,553 


Note 6.  Agreements and Related Party Transactions
Administration Agreement
On June 26, 2019, the Company entered into an Administration Agreement (the “Administration Agreement”) with Angelo Gordon (the “Administrator”). Under the terms of the Administration Agreement, the Administrator performs, or oversees the performance of, required administrative services, which include providing office space, equipment and office services, maintaining financial records, preparing reports to shareholders and reports filed with the SEC, and managing the payment of expenses and the performance of administrative and professional services rendered by others.
The Company reimburses the Administrator for services performed for it pursuant to the terms of the Administration Agreement. In addition, pursuant to the terms of the Administration Agreement, the Administrator may delegate its obligations under the Administration Agreement to an affiliate or to a third party and the Company will reimburse the Administrator for any services performed for it by such affiliate or third party.
Unless earlier terminated as described below, the Administration Agreement will remain in effect until June 26, 2022 and from year to year thereafter if approved annually by the vote of the Board of Directors of the Company and the vote of a majority of the Company’s Independent Directors.  The Administration Agreement may be terminated by either party without penalty upon not less than 60 days’ written notice to the other.
No person who is an officer, director, or employee of the Administrator or its affiliates and who serves as a director of the Company receives any compensation from the Company for his or her services as a director.  However, the Company reimburses the Administrator (or its affiliates) for an allocable portion of the compensation paid by the Administrator or its affiliates to the Company’s officers who provide operational and administrative services, as well as their respective staffs and other professionals who provide services to the Company, who assist with the preparation, coordination and administration of the foregoing or provide other “back office” or “middle office” financial or operational services to the Company (based on the percentage of time those individuals devote, on an estimated basis, to the business and affairs of the Company).  Directors who are not affiliated with the Administrator receive compensation for their services and reimbursement of expenses incurred to attend meetings.
For the three and nine months ended September 30, 2021,March 31, 2022, the Administrator charged approximately $0.1 and $0.3 million, respectively,$54,000 for certain costs and expenses allocable to the Company under the terms of the Administration agreement. For the three and nine months ended September 30, 2020,March 31, 2021, the Administrator had the option to chargecharged approximately $0.1 million and $0.4 million, respectively,$88,000 for certain costs and expenses allocable to the Company under the terms of the Administration Agreement, all of which were waived and borne by the Administrator for those periods.



agreement.
2629
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) –— Continued

Investment Management Agreement
On June 26, 2019, the Company entered into an Investment Management Agreement (the “Investment Management Agreement”) with the Advisor.  Under the terms of the Investment Management Agreement, the Advisor is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring the Company’s investments and monitoring the Company’s investments and portfolio companies on an ongoing basis.

Unless earlier terminated as described below, the Investment Management Agreement will remain in effect until June 26, 2022 and from year to year thereafter if approved annually by (a) the vote of the Board of Directors of the Company or by the vote of a majority of the outstanding voting securities of the Company and (b) the vote of a majority of the Company’s Independent Directors.  The Investment Management Agreement will automatically terminate in the event of assignment.  The Investment Management Agreement may be terminated without penalty upon not less than 60 days’ written notice by the vote of a majority of the outstanding voting securities of the Company, or by the vote of the Company’s Directors or by the Advisor.

From time to time, the Advisor may pay amounts owed by the Company to third-party providers of goods or services and the Company will subsequently reimburse the Advisor for such amounts paid on its behalf.  Amounts payable to the Advisor are settled in the normal course of business without formal payment terms.

The Investment Management Agreement also provides that the Company reimburses the Advisor for certain organizational costs incurred prior to the commencement of the Company’s operations, and for certain offering costs. The Company has agreed to repay the Advisor for initial organizational costs and offering costs up to a maximum of $1.25 million, with the Advisor bearing any organizational and offering costs in excess of such amount.

As of September 30, 2021,March 31, 2022, the Company had approximately $0.7 million$639,000 payable to Angelo Gordon for operating costs which is included in “Accrued expenses and other liabilities payable to affiliate” on the consolidated statement of assets and liabilities.  As of December 31, 2020,2021, the Company had approximately $0.5 million$677,000 payable to Angelo Gordon for operating costs which is included in "Accrued“Accrued expenses and other liabilities payable to affiliate"affiliate” on the consolidated statement of assets and liabilities.

Under the terms of the Investment Management Agreement, the Company will pay the Advisor a base management fee and may also pay to it certain incentive fees.  The cost of both the base management fee and the incentive fee will ultimately be borne by the Company’s shareholders.

The base management fee is calculated at an annual rate of 0.60% of the Company’s gross assets, excluding cash and cash equivalents.  For services rendered under the Investment Management Agreement, the base management fee is payable quarterly in arrears.  The base management fee is calculated based on the average value of the Company’s gross assets (excluding cash and cash equivalents) at the end of the two most recently completed calendar quarters, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter.  Base management fees for any partial month or quarter will be appropriately pro-rated.  For purposes of the Investment Management Agreement, cash equivalents means U.S. government securities and commercial paper instruments maturing within one year of purchase.  Upon the occurrence of a Qualified IPO, the base management fee will be calculated at an annual rate of 1.25% of the Company’s gross assets, excluding cash and cash equivalents.


For the three months ended March 31, 2022, the Company accrued approximately $241,000 of base management fees payable to the Advisor.  For the three months ended March 31, 2021, the Company accrued approximately $123,000 of base management fees payable to the Advisor.  As of March 31, 2022 and December 31, 2021, base management fees payable by the Company to the Advisor were approximately $241,000 and $196,000, respectively.
2730
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) –— Continued

For the three and nine months ended September 30, 2021, the Company accrued approximately $155,000 and $416,000, respectively, of base management fees payable to the Advisor.  For the three and nine months ended September 30, 2020, the Company accrued approximately $94,000 and $259,000 of base management fees payable to the advisor. As of September 30, 2021 and December 31, 2020, base management fees payable by the Company to the Advisor were approximately $155,000 and $105,000, respectively.

Pursuant to the Investment Management Agreement, the Advisor is entitled to an incentive fee (“Incentive Fee”), which consists of two components; an incentive fee based on income and an incentive fee based on capital gains.

The first part, the income incentive fee, is calculated and payable quarterly in arrears and equals (a) 100% of the excess of the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter, over a preferred return of 1.00% per quarter (4% annualized) (the “Hurdle”), until the Advisor has received a “catch-up” equal to 16.75% of the pre-incentive fee net investment income for the current quarter; and (b) 16.75% of all remaining pre-incentive fee net investment income above the “catch-up.”

The second part, the capital gains incentive fee, is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Investment Management Agreement), and equals 16.75% of the Company’s realized capital gains, if any, on a cumulative basis from inception through the end of the fiscal 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 (the “Cumulative Capital Gains”).

For the three and nine months ended September 30, 2021,March 31, 2022, the Company accrued approximately $214,000 and $568,000, respectively,$381,000 of income incentive fees payable to the Advisor.  For the three and nine months ended September 30, 2020,March 31, 2021, the Company accrued approximately $38,000$147,000 of income incentive fees payable to the Advisor, of which $147,000 were unpaid as of March 31, 2021.  As of March 31, 2022 and $114,000,December 31, 2021, the Company had approximately $381,000 and $345,000, respectively, of income incentive fees payable to the Advisor. As of September 30, 2021 and December 31, 2020, the Company had approximately $214,000 and $99,000, respectively, of income incentive fees payable to the Advisor.

Affiliated Transactions
The Company may be prohibited under the 1940 Act from participating in certain transactions with its affiliates without prior approval of the Company’s Independent Directors, and in some cases, the prior approval of the SEC.  The Company intends to rely on exemptive relief that has been granted by the SEC to the Company, the Advisor, and Angelo Gordon to permit the Company to co-invest with other funds managed by the Advisor or Angelo Gordon, in a manner consistent with the Company’s investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors.

Pursuant to such exemptive relief, the Company is generally permitted to co-invest with certain of its affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of the Board make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the transaction, including the consideration to be paid, are reasonable and fair to the Company and its shareholders and do not involve overreaching of the Company or its shareholders on the part of any person concerned, (2) the transaction is consistent with the interests of the Company’s shareholders and is consistent with its investment objective and strategies, and (3) the investment by its affiliates would not disadvantage the Company, and the Company’s participation would not be on a basis different from or less advantageous than that on which its affiliates are investing. In certain situations where co-investment with one or more funds managed by Angelo Gordon is not permitted or appropriate, Angelo Gordon will need to decide

28
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) – Continued

which funds will proceed with the investment.  Angelo Gordon will make these determinations based on its policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations.

31
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued
Investment in Affiliated FundFunds
Fair value as of September 30,March 31, 2022 and 2021 and 2020 and transactions during the three and nine months ended September 30,March 31, 2022 and 2021 and 2020 of the Company’s investments in affiliates were as follows:


 Investment in Affiliated Fund at Fair Value for the Three Months Ended September 30, 2021    Investment in Affiliated Funds at Fair Value for the Three Months Ended March 31, 2022 
(Amounts in thousands) 
Fair Value as of
July 1, 2021
 Gross Additions  Gross Reductions  
Net Realized
Gain (Loss)
  Net Change in Unrealized Appreciation (Depreciation)  
Fair Value as of
September 30, 2021
  Dividend, Interest, PIK and Other Income  Fair Value as of January 1, 2022  Gross Additions  Gross Reductions  Net Realized Gain (Loss)  Net Change in Unrealized Appreciation (Depreciation)  
Fair Value as of
March 31, 2022
  Dividend, Interest, PIK and Other Income 
Non-controlled/affiliated investments                                         
Twin Brook Equity Holdings, LLC $5,131 $398  $(13) $–  $220  $5,736  $–  $7,972  $238  $(8) $0  $245  $8,447  $0 
Twin Brook Segregated Equity Holdings, LLC  14   0   0   0   4   18   0 
Total non-controlled/affiliated investments $5,131 $398  $(13) $–  $220  $5,736  $–  $7,986  $238  $(8) $0  $249  $8,465  $0 




Investment in Affiliated Fund at Fair Value for the Three Months Ended March 31, 2021 
(Amounts in thousands)Fair Value as of January 1, 2021 Gross Additions Gross Reductions Net Realized Gain (Loss) Net Change in Unrealized Appreciation (Depreciation) 
Fair Value as of
March 31, 2021
 
Dividend,
Interest, PIK
and Other
Income
 
Non-controlled/affiliated investments              
Twin Brook Equity Holdings, LLC $3,721  $130  $(2) $0  $112  $4,061  $0 
Total non-controlled/affiliated investments $3,721  $130  $(2) $0  $112  $4,061  $0 
  Investment in Affiliated Fund at Fair Value for the Nine Months Ended September 30, 2021 
(Amounts in thousands) 
Fair Value as of
January 1, 2021
  Gross Additions  Gross Reductions  
Net Realized
Gain (Loss)
  Net Change in Unrealized Appreciation (Depreciation)  
Fair Value as of
September 30, 2021
  Dividend, Interest, PIK and Other Income 
Non-controlled/affiliated investments                     
Twin Brook Equity Holdings, LLC $3,721  $1,259  $(16) $–  $772  $5,736  $– 
Total non-controlled/affiliated investments $3,721  $1,259  $(16) $–  $772  $5,736  $– 




  Investment in Afilliated Fund at Fair Value for the Three Months Ended September 30, 2020 
(Amounts in thousands) 
Fair Value as of
July 1, 2020
  Gross Additions  Gross Reductions  
Net Realized
Gain (Loss)
  Net Change in Unrealized Appreciation (Depreciation)  
Fair Value as of
September 30, 2020
  Dividend, Interest, PIK and Other Income 
Non-controlled/affiliated investments                     
Twin Brook Equity Holdings, LLC $1,957  $25  $(23) $–  $270  $2,229  $– 
Total non-controlled/affiliated investments $1,957  $25  $(23) $–  $270  $2,229  $– 


  Investment in Affiliated Fund at Fair Value for the Nine Months Ended September 30, 2020 
(Amounts in thousands) 
Fair Value as of
January 1, 2020
  Gross Additions  Gross Reductions  
Net Realized
Gain (Loss)
  Net Change in Unrealized Appreciation (Depreciation)  
Fair Value as of
September 30, 2020
  Dividend, Interest, PIK and Other Income 
Non-controlled/affiliated investments                     
Twin Brook Equity Holdings, LLC $1,641  $690  $(82) $–  $(20) $2,229  $– 
Total non-controlled/affiliated investments $1,641  $690  $(82) $–  $(20) $2,229  $– 

Note 7.  Derivatives
The Company may enter into foreign currency forward contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies.
In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or a similar agreement with its derivative counterparties. An ISDA Master Agreement is a bilateral agreement between the Company and a counterparty that governs OTC derivatives, including foreign currency forward contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty. The Company minimizes counterparty credit risk by only entering into agreements with counterparties that it believes to be of good standing and by monitoring the financial stability of those counterparties.





29
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) – Continued

For the three and nine months ended September 30, 2021, March 31, 2022, the Company’s average USD notional exposure to foreign currency forward contracts was approximately $1,212,000 and $1,392,000, respectively.$1,882,000.


The following table presents both gross and net information about derivative instruments eligible for offset in the consolidated statements of assets and liabilities as of September 30, 2021.March 31, 2022:

Counterparty 
Gross Amount of
Assets
  Gross Amount of Liabilities  Net Amount of Assets/(Liabilities)  
Collateral Received/Pledged(1)
  
Net Amounts(2)
 
Wells Fargo Bank, National Association $23  $15  $8  $-  $8 


Counterparty
 Gross Amount of Assets  Gross Amount of Liabilities  Net Amount of Assets/(Liabilities)  
Collateral Received/Pledged(1)
  
Net Amounts(2)
 
Wells Fargo Bank, National Association $21
  $3
  $18
  $0
  $18
 


(1) Amount excludes excess cash collateral paid.
(2)
(2) Net amount represents the net amount due (to) from counterparty in the event of a default based on the contractual setoff rights under the agreement. Net amount excludes any over-collateralized amounts, if applicable.


32
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued
The following table presents both gross and net information about derivative instruments eligible for offset in the consolidated statements of assets and liabilities as of December 31, 2021:


Counterparty
 Gross Amount of Assets  Gross Amount of Liabilities  Net Amount of Assets/(Liabilities)  
Collateral Received/Pledged(1)
  
Net Amounts(2)
 
Wells Fargo Bank, National Association $39  $3  $36  $0  $36 
 
(1)Amount excludes excess cash collateral paid.
(2) Net amount represents the net amount due (to) from counterparty in the event of a default based on the contractual setoff rights under the agreement. Net amount excludes any over-collateralized amounts, if applicable.

The effect of transactions in derivative instruments on the consolidated statements of operations during the three and nine months ended September 30,March 31, 2022 was as follows:

  March 31, 2022 
Net change in unrealized gain (loss) on foreign currency forward contracts $(18)
Realized (loss) on foreign currency forward contracts  (2)

The effect of transactions in derivative instruments on the consolidated statements of operations during the year ended December 31, 2021 was as follows:
  Three Months Ended September 30, 2021  Nine Months Ended September 30, 2021 
Net change in unrealized gain (loss) on foreign currency forward contracts $4  $8 
Realized (loss) on foreign currency forward contracts  12   (47)

  December 31, 2021 
Net change in unrealized gain (loss) on foreign currency forward contracts $36 
Realized (loss) on foreign currency forward contracts  (78)

There were no derivative transactions entered in to or outstanding for the year ended December 31, 2020.


Note 8.  Commitments and Contingencies
Commitments
The Company’s investment portfolio may contain debt investments that are in the form of revolving lines of credit and unfunded delayed draw commitments, which require the Company to provide funding when requested by portfolio companies in accordance with the terms of the underlying loan agreements.


Unfunded portfolio company commitments and funded debt investments are presented on the consolidated schedule of investments and are fair valued.  Unrealized appreciation or depreciation, if any, is included in the consolidated statement of assets and liabilities and consolidated statement of operations.



30
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) – Continued

As of September 30, 2021March 31, 2022 and December 31, 2020,2021, the Company had the following outstanding commitments to fund investments in current portfolio companies:


Portfolio Company September 30, 2021 December 31, 2020 
First lien senior secured debt(1)
 (Amounts in thousands) (Amounts in thousands) 
50Floor, LLC $199 $199 
Abrasive Technology Intermediate, LLC  173  - 
Advanced Lighting Acquisition, LLC  324  162 
AFC Industries, Inc.  250  - 
Affinitiv, Inc.  248  248 
Agility Intermediate, Inc.  534  - 
ALM Media, LLC  873  971 
Altamira Material Solutions, LP  32  - 
AM Buyer, LLC  111  108 
Anne Arundel Dermatology Management, LLC  354  780 
Apex Dental Partners, LLC  236  600 
Aptitude Health Holdings, LLC  240  - 
Aquatic Sales Solutions, LLC  38  135 
ASP Global Acquisition, LLC  534  534 
Banner Buyer, LLC  813  1,343 
BBG Intermediate Holdings, Inc.  165  686 
Beacon Oral Specialists Management LLC  311  - 
Behavior Frontiers, LLC  19  - 
BRTS Holdings, LLC  -  341 
Bio Agri Mix Holdings Inc.  89  - 
Brightview, LLC  427  - 
Canadian Orthodontic Partners Corp.  380  - 
Community Care Partners, LLC  263  - 
Copperweld Group, Inc.  228  400 
Cosmetic Solutions, LLC  710  710 
Data Source Intermediate Holdings, LLC  123  - 
DealerOn Inc.  314  314 
Diamondback Buyer, LLC  68  - 
Domino Equipment Company, LLC  79  - 
Edko Acquisition, LLC  38  - 
EH Management Company, LLC  38  - 
Empire Equipment Company, LLC  1,379  1,254 
EMSAR Acquisition LLC  567  - 
Engelman Baking Co., LLC  157  157 
E-Phoenix Acquisition Co. Inc.  75  - 
Formulated Buyer, LLC  488  - 
G2O Technologies, LLC  207  207 
Geriatric Medical and Surgical Supply, LLC 
300 
270 
Groundworks Operations, LLC  867  739 
Guardian Dentistry Practice Management, LLC  218  - 
Hydromax USA, LLC  205  330 
Icelandirect, LLC  33  - 
Industrial Dynamics Company, Ltd.  141  141 
Innovative FlexPak, LLC  408  627 
Portfolio Company March 31, 2022  December 31, 2021 
First lien senior secured debt(1)
 (Amounts in thousands)  (Amounts in thousands) 
50Floor, LLC $199  $199 
626 Holdings Equity, LLC
  390   0 
Abrasive Technology Intermediate, LLC  156   173 
Advanced Lighting Acquisition, LLC  324   324 
AEP Passion Intermediate Holdings, Inc.  69   91 
AFC Industries, Inc.  137   223 
Affinitiv, Inc.  248   248 
Agility Intermediate, Inc.  534   534 
Alliance Environmental Group, LLC  66   113 
ALM Media, LLC  971   971 
Altamira Material Solutions, LP  41   45 
AM Buyer, LLC  111   111 
Answer Acquisition, LLC  34   38 
Apex Dental Partners, LLC  146   215 
Aptitude Health Holdings, LLC  267   240 
Aquatic Sales Solutions, LLC  117   117 
ASC Ortho Management, LLC  398   398 
ASP Global Acquisition, LLC  485   534 
AvCarb, LLC  704   704 


3133
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) –— Continued

Portfolio Company September 30, 2021 December 31, 2020 
First lien senior secured debt (continued) (Amounts in thousands) (Amounts in thousands) 
ISSA, LLC  $131  $- 
Jansy Packaging, LLC  706  676 
Kalkomey Enterprises, LLC  77  77 
Lakeshirts LLC  663  703 
Legility, LLC  123  123 
Leonard Group, Inc.  197  - 
Library Associates, LLC  127  211 
MacNeill Pride Group Corp.  218  - 
Mad Rose Company, LLC  104  - 
Mattco Forge, Inc.  506  506 
Millennia Patient Services, LLC  401  - 
Montway LLC  825  825 
Motis Brands, Inc.  115  - 
MRC Keeler Acquisition, LLC  300  300 
Nimlok Company, LLC  320  11 
NSG Buyer, Inc.  294  294 
NutriScience Innovations, LLC  131  - 
Peak Dental Services, LLC  337  636 
Peak Investment Holdings, LLC  908  809 
Perimeter Brands Intermediate Holdco LLC  -  210 
PPW Acquisition, LLC  38  - 
Reliable Medical Supply LLC  206  138 
Revival Animal Health, LLC  131  - 
Revolution Plastics Buyer, LLC  188  492 
RQM Buyer, Inc.  219  - 
RTP Acquisition, LLC  38  - 
SAMGI Buyer, Inc.  138  138 
SCA Buyer, LLC  459  - 
SCP ENT and Allergy Services, LLC  1,287  1,287 
SCP Eye Care Services, LLC  -  469 
Shearer Supply, LLC  113  - 
ShiftKey, LLC  94  - 
Silver Falls MSO, LLC  117  178 
SimiTree Acquisition LLC  1,065  - 
Southeast Primary Care Partners, LLC  525  525 
Southern Orthodontic Partners Management, LLC  281  - 
Spear Education, LLC  888  474 
Spectrum Solutions, LLC  267  - 
Starwest Botanicals Acquisition, LLC  174  - 
Storm Smart Buyer LLC  131  - 
Teel Plastics, LLC 
324 
324 
Trademark Global, LLC  110  - 
Triad Technologies, LLC  314  282 
United Land Services Opco Parent, LLC  1,022  - 
Vanguard Packaging, LLC  356  535 
Varsity DuvaSawko Operating Corp.  474  474 
Vital Care Buyer, LLC  580  580 
Total unfunded portfolio company commitments $29,278 $22,533 
Portfolio Company March 31, 2022  December 31, 2021 
First lien senior secured debt (continued)(1)
 (Amounts in thousands)  (Amounts in thousands) 
Banner Buyer, LLC $715  $838 
BBG Intermediate Holdings, Inc.  229   233 
BCI Burke Holding Corp.  195   196 
Beacon Oral Specialists Management LLC  266   36 
Behavior Frontiers, LLC  19   19 
Bio Agri Mix Holdings Inc.  90   89 
Brightview, LLC  160   358 
Canadian Orthodontic Partners Corp.  142   237 
Community Care Partners, LLC  146   169 
Copperweld Group, Inc.  493   197 
Cosmetic Solutions, LLC  344   710 
CPS HVAC Group, LLC  182   188 
Data Source Intermediate Holdings, LLC  123   123 
DealerOn Inc.  314   314 
Dermatology Medical Partners OpCo, LLC  106   134 
Diamondback Buyer, LLC  75   75 
DNS IMI Acquisition Corp  125   124 
Domino Equipment Company, LLC  79   79 
Dykstra's Auto, LLC  152   129 
Edko Acquisition, LLC  38   38 
EH Management Company, LLC  38   38 
Empire Equipment Company, LLC  282   1,254 
EMSAR Acquisition LLC  515   542 
Engelman Baking Co., LLC  163   153 
E-Phoenix Acquisition Co. Inc.  75   75 
Exclusive Concepts, LLC  248   248 
Formulated Buyer, LLC  390   390 
FreshAddress, LLC  30   30 
Geriatric Medical and Surgical Supply, LLC  300   300 
Gold Medal Holdings, Inc.
  35   0 
Golden Bear PT Partners, LLC  218   267 
Green Monster Acquisition, LLC  38   38 
Groundworks Operations, LLC  425   575 
Guardian Dentistry Practice Management, LLC  81   90 
Highland Acquisition, Inc.
  26   0 
HLSG Intermediate, LLC
  155   0 
Home Brands Group Holdings, Inc.  48   48 
Hydromax USA, LLC  125   182 
Icelandirect, LLC  17   23 
Industrial Dynamics Company, Ltd.  141   141 
Infolinks Media Buyco, LLC  77   77 
Innovative FlexPak, LLC  408   408 
ISSA, LLC  66   66 
Jansy Packaging, LLC  470   706 
Juniper Landscaping Holdings LLC  132   110 
Kaizen Auto Care, LLC  99   204 


34
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued
Portfolio Company March 31, 2022  December 31, 2021 
First lien senior secured debt (continued)(1)
 (Amounts in thousands)  (Amounts in thousands) 
Kalkomey Enterprises, LLC $46  $77 
Lakeshirts LLC  80   80 
Leonard Group, Inc.  66   197 
Library Associates, LLC  0   84 
MacNeill Pride Group Corp.  265   52 
Mad Rose Company, LLC  119   119 
Main Street Gourmet, LLC  685   704 
Mattco Forge, Inc.  506   506 
Maxor National Pharmacy Services, LLC  84   84 
Millennia Patient Services, LLC  401   401 
Montway LLC  825   825 
Motis Brands, Inc.  8   14 
MRC Keeler Acquisition, LLC  300   300 
Nelson Name Plate Company  86   94 
Network Partners Acquisition, LLC  150   150 
Nimlok Company, LLC  320   320 
Novum Orthopedic Partners Management, LLC  331   373 
NSG Buyer, Inc.  294   294 
NutriScience Innovations, LLC  131   131 
P&R Dental Strategies, LLC  23   23 
Peak Dental Services, LLC  146   149 
Peak Investment Holdings, LLC  908   908 
Pentec Acquisition Corp.  75   75 
Performance PowerSports Group Purchaser, Inc.  12   8 
Pink Lily Holdings, LLC  38   46 
PPW Acquisition, LLC  21   30 
Reliable Medical Supply LLC  87   178 
Revival Animal Health, LLC  131   131 
RQM Buyer, Inc.  234   234 
RTP Acquisition, LLC  38   38 
SAMGI Buyer, Inc.  138   138 
SASE Company, LLC  38   38 
SCA Buyer, LLC  373   412 
SCP Beverage Buyer, LLC  23   38 
SCP ENT and Allergy Services, LLC  879   966 
Shearer Supply, LLC  67   71 
ShiftKey, LLC  241   120 
Signature Dental Partners LLC  152   179 
Silver Falls MSO, LLC  0   94 
SimiTree Acquisition LLC  191   522 
Southeast Primary Care Partners, LLC  405   435 
Southern Orthodontic Partners Management, LLC  45   167 
Southern Sports Medicine Partners, LLC
  216   0 
Spear Education, LLC  359   888 
Spectrum Solutions, LLC  267   267 

35
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued
Portfolio Company March 31, 2022  December 31, 2021 
First lien senior secured debt (continued)(1)
 (Amounts in thousands)  (Amounts in thousands) 
Starwest Botanicals Acquisition, LLC $139  $174 
Stax Holding Company, LLC  60   60 
Steel City Wash, LLC  38   38 
Storm Smart Buyer LLC  131   131 
Teel Plastics, LLC  324   324 
The Channel Company, LLC  62   62 
The Stratix Corporation  75   150 
Trademark Global, LLC  65   88 
Triad Technologies, LLC  314   314 
United Land Services Opco Parent, LLC  803   914 
USALCO, LLC  68   93 
Vanguard Packaging, LLC  303   303 
Varsity DuvaSawko Operating Corp.  474   474 
Vehicle Accessories, Inc.  34   38 
Vital Care Buyer, LLC  406   580 
Western Veterinary Partners, LLC  217   147 
Total unfunded portfolio company commitments $27,294  $30,379 

(1) Unfunded commitments denominated in currencies other than USD have been converted to USD using the exchange rate as of the applicable reporting date.
32

AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) – Continued

As of September 30, 2021March 31, 2022 and December 31, 2020,2021, approximately $188,000$203,000 and $181,000,$185,000, respectively, of the Company's unfunded revolver commitments are reserved for letters of credit issued to third party beneficiaries on behalf of the Company's investments.
Investor Commitments

As of September 30, 2021March 31, 2022 and December 31, 2020,2021, the Company had $216.0 million in total capital commitments from investors ($91.832.4 million and $126.4 million, respectively, undrawn).  These undrawn capital commitments will no longer remain in effect following the completion of a Qualified IPO.
FourNaN investors in the Company have aggregate capital commitments representing 100% of the Company’s total capital commitments. Such concentration of investor commitments could have a material effect on the Company.
Other Commitments and Contingencies
From time to time, the Company may become a party to certain legal proceedings during the normal course of business.  As of September 30,March 31, 2022, and December 31, 2021, management was not aware of any material pending or threatened litigation.

36
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued

Note 9.  Net Assets
Subscriptions and Drawdowns
As of September 30, 2021,March 31, 2022, the Company had 6,199,8099,141,176 shares issued and outstanding with a par value of $0.001 per share.
The Company has entered into subscription agreements with investors providing for the private placement of the Company’s common shares. Under the terms of the subscription agreements, investors are required to fund drawdowns to purchase the Company’s common shares up to the amount of their respective capital commitment on an as-needed basis each time the Advisor delivers a drawdown notice to such investors.
During the ninethree months ended September 30,March 31, 2022, there were no capital call notices delivered to investors.
During the three months ended March 31, 2021, and 2020, the Advisor delivered the following capital call noticesnotice to investors:


   Three Months Ended March 31, 2021     
    Number of
  Aggregate Offering
   Common Share Common Shares
  Price
 Capital Drawdown Notice Date  Issuance Date Issued
  ($ in millions)
March 16, 2021
 March 30, 2021
 540,000 $
10.80
Total   540,000 $
10.80


Nine Months Ended September 30, 2021 
    Number of Aggregate Offering 
                                                                                Common Share Common Shares Price 
Capital Drawdown Notice DateIssuance Date Issued ($ in millions) 
March 16, 2021March 30, 2021  540,000 $10.80 
June 30, 2021July 15, 2021  802,493  16.20 
August 30, 2021September 15, 2021  375,316  7.56 
Total   1,717,809 $34.56 



Nine Months Ended September 30, 2020
    Number of Aggregate Offering 
                                                                                Common Share Common Shares Price 
Capital Drawdown Notice DateIssuance Date Issued ($ in millions) 
February 28, 2020March 13, 2020  810,000 $16.20 
June 11, 2020June 25, 2020  432,000  8.64 
Total   1,242,000 $24.84 


Dividends
33There were 0 dividends declared during the three months ended March 31, 2022 and 2021.
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) – Continued


Dividends
The following table reflects dividend declared on shares of the Company’s common stock during the nine months ended September 30, 2021 and 2020:

For the Nine Months Ended September 30, 2021 
Date Declared 
Record
Date
 
Payment
Date
 
Dividend
per Share
 
April 22, 2021 April 26, 2021 April 30, 2021 $0.20 
July 22, 2021 July 26, 2021 July 30, 2021 $0.20 

For the Nine Months Ended September 30, 2020 
Date Declared 
Record
Date
 
Payment
Date
 Dividend
per Share		 
July 16, 2020 July 27, 2020 July 31, 2020 $0.20 

Note 10. Earnings Per Share
The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three and nine months ended September 30, 2021March 31, 2022 and 2020:2021:

  Three Months Ended  Three Months Ended  Nine Months Ended  Nine Months Ended 
(Amounts in thousands, except share and per share amounts) September 30, 2021  September 30, 2020  September 30, 2021  September 30, 2020 
Net increase (decrease) in net assets resulting from operations $1,518  $1,351  $4,520  $328 
Weighted average shares of common stock  5,754,844   3,402,000   5,092,922   2,907,131 
 outstanding - basic and diluted                
 Earnings (loss) per common share - basic and diluted $0.26  $0.40  $0.89  $0.11 


  Three Months  Three Months 
  Ended  Ended 
(Amounts in thousands, except share and per share amounts) March 31, 2022  March 31, 2021 
Net increase (decrease) in net assets resulting from operations $2,347  $1,303 
Weighted average shares of common stock outstanding - basic and diluted  9,141,176   4,488,000 
 Earnings (loss) per common share - basic and diluted $0.26
  $0.29
 

Note 11. Income Taxes
Taxable income generally differs from net increase (decrease) in net assets resulting from operations due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized.


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AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued
The Company makes certain adjustments to the classification of net assets as a result of permanent book-to-tax differences, which include differences in the book and tax basis of certain assets and liabilities, and nondeductible federal taxes or losses among other items. To the extent these differences are permanent, they are charged or credited to additional paid in capital or total distributable earnings (losses), as appropriate. There were no0 permanent differences for the ninethree months ended September 30,March 31, 2022 and 2021. For the three and nine months ended September 30, 2020, permanent differences were approximately $73,000 and $409,000, respectively, consisting of nondeductible offering costs.






34
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) – Continued

Note 12.  Financial Highlights
The following are financial highlights for a common share outstanding during the ninethree months ended September 30, 2021March 31, 2022 and 2020:
2021:


 Nine Months  Nine Months  Three Months  Three Months 
 Ended  Ended  Ended  Ended 
 September 30,  September 30,  March 31,  March 31, 
(Amounts in thousands, except share and per share amounts) 2021  2020  2022
  2021
 
Per share data:            
Net asset value, beginning of period $19.75  $19.77  $20.14  $19.75 
Net investment income (loss)(1)
 0.61  0.45   0.21   0.20 
Net realized and unrealized gain (loss) on investment transactions(1)
  0.28   (0.34)  0.05   0.09 
Total from operations 0.89  0.11   0.26   0.29 
Impact of issuance of common stock (0.01) 0.07   0   (0.01)
Dividends declared from earnings  (0.40)  (0.20)
Total increase (decrease) in net assets  0.48   (0.02)  0.26   0.28 
Net asset value, end of period $20.23  $19.75  $20.40  $20.03 
Shares outstanding, end of period 6,199,809  3,402,000   9,141,176   5,022,000 
Total return(2)
 4.4% 0.9%
Total return(2)(3)
  1.3%
  1.4%
Ratios / supplemental data              
Ratio of gross expenses to average net assets(3)(4)(5)
 2.6% 4.8%  0.6%  0.9%
Ratio of net expenses to average net assets(3)(4)(6)
 2.6% 4.1%  0.6%  0.9%
Ratio of net investment income (loss) to average net assets(3)(4)
 3.1% 2.4%  1.0%  1.0%
Net assets, end of period $125,412  $67,189  $186,445  $100,604 
Weighted average shares outstanding 5,092,922  2,907,131   9,141,176   4,488,000 
Total capital commitments, end of period $216,000  $216,000  $216,000  $216,000 
Ratio of total contributed capital to total committed capital, end of period 57.5% 31.5%  85.0%  46.5%
Portfolio turnover rate(7)
 26.5% 18.5%  6.8%  11.7%
Asset coverage ratio(8)
 N/A  6,818.9%  N/A   N/A 

(1)
The per share data was derived using the weighted average shares outstanding during the period.
(2)
Total return is calculated as the change in net asset value ("NAV") per share during the period, plus distributions per share, if any, divided by the NAV per share at
the beginning of the period. The total return for the period from May 6, 2019 (inception) to December 31, 2019 is calculated using the denominator of the offering price of $20.00 per share on the initial capital call from investors on July 29, 2019.
(3)
Not annualized.
(4)
Average net assets are computed using the average balance of net assets at the end of each month of the reporting period.
(5)
Ratio of gross expenses to average net assets is computed using expenses before waivers from the Adviser and Administrator, if applicable.
(6)
Ratio of netexpensesnet expenses to average net assets is computed using total expenses net of waivers from the Adviser and Administrator, if applicable.
(7)
Portfolio turnover rate is calculated using the lesser of total sales or total purchases over the average of the investments at fair value for the periods reported.
(8)
Asset coverage ratio is equal to (i) the sum of (A) net assets at the end of the period and (B) total debt outstanding at the end of the
period, divided by (ii) total debt outstanding at the end of the period. The ratio is not applicable as of September 30, 2021March 31, 2022 as there was no
debt outstanding atduring the end of the period.


Note 13.  Subsequent Events
The Company’s management evaluated subsequent events through the date of issuance of these consolidated financial statements.  There have been no subsequent events that occurred that would require disclosure in, or would be required to be recognized in, these consolidated financial statements, except as discussed below.below.
On October 13, 2021, the Advisor issued a capital call notice to investors relating to the sale of 805,806 shares of the Company’s common stock for an aggregate offering price of $16.2 million. The sale closed on October 27, 2021.
On OctoberApril 15, 2021, 2022, the Board declared a dividend of $0.20 per share on the Company’s common stock, which was paid on OctoberApril 29, 20212022 to stockholders of record at the close of business on OctoberApril 18, 2021.2022.


On May, 4, 2022, the Company terminated the Subscription Facility's revolving credit agreement with the Lender.

35
38

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
In this quarterly report on Form 10-Q, or this "report," we refer to AG Twin Brook BDC, Inc and it’s consolidated subsidiaries. as "we," "us," the "Company," or "our," unless we specifically state otherwise or the context indicates otherwise. We refer to our investment adviser, AG Twin Brook Manager, LLC, as our "Advisor," and we refer to the direct parent company of our Advisor, Angelo, Gordon & Co., L.P., as "Angelo Gordon." Angelo Gordon serves as the Company’s Administrator and may also be referred to herein as “Administrator”.


Forward-Looking Statements
This report includes estimates, projections, statements relating to our business plans, objectives, and expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may appear throughout this report, including the following sections: “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” (Part II, Item 1A of this Form 10-Q). These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, returns, results of operations, plans, yields, objectives, the composition of our portfolio, actions by governmental entities, including the U.S. Department of the Treasury and the Federal Reserve, and the potential effects of actual and proposed legislation on us, our views on certain macroeconomic trends, and the impact of COVID-19. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements, which speak only as of the date made, and urge you to carefully consider the risks identified under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 20202021 (our “2020“2021 10-K”). Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand the results of operations and financial condition of AG Twin Brook BDC, Inc. This MD&A is provided as a supplement to, and should be read in conjunction with our 20202021 10-K, our consolidated financial statements and the accompanying notes to consolidated financial statements (Part I, Item 1 of this report).


Overview
AG Twin Brook BDC, Inc. is a Delaware corporation formed on February 4, 2016.  We have elected to be regulated as a Business Development Company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”).  In addition, for tax purposes, we have elected to be treated as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).  We were formed to provide risk-adjusted returns and current income to investors by investing primarily in middle market companies.
We are managed by our Advisor, a wholly-owned subsidiary of Angelo Gordon.  The Advisor is registered as an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940.  Subject to the overall supervision of our board of directors (the “Board”), our Advisor manages our day-to-day operations, and provides investment advisory and management services to us.  Our Advisor will be responsible for originating prospective investments, conducting





3639


conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring our investments, and monitoring our investments and portfolio companies on an ongoing basis.


We conduct private offerings (each, a “Private Offering”), where investors make a capital commitment to purchase shares of our common stock pursuant to a subscription agreement entered into with us.  Investors will be required to make capital contributions to purchase shares of our common stock each time the Company delivers a drawdown notice. The initial closing of the Private Offering occurred on July 19, 2019 (the “Initial Closing”).  As of September 30, 2021,March 31, 2022, we had $216 million in total capital commitments from investors.  Upon the earlier to occur of (i) a Qualified IPO (as defined below), and (ii) the five year anniversary of the Initial Closing, investors will be released from any further obligation to purchase additional shares, subject to certain exceptions. A “Qualified IPO” is an initial public offering (“IPO”) of our common stock that results in an unaffiliated public float of at least the lower of (A) $60 million and (B) 17.5% of the aggregate capital commitments received prior to the date of such initial public offering.
As a BDC, we must invest at least 70% of our assets in “eligible portfolio companies,” generally, U.S. private operating companies (or small U.S. public operating companies with a market capitalization of less than $250 million). As a BDC, we may also invest up to 30% of our portfolio in non-eligible portfolio company investments, such as investments in non-U.S. companies, which may include investments in a “passive foreign investment company” (a “PFIC”).  Because we have elected to be regulated as a BDC,, and we intend to continue to qualify as a RIC under the Code, our portfolio will also be subject to the diversification and other requirements under the Code.


Investments
We invest principally in privately originated senior secured loans to U.S. middle market companies, which we believe have consistent capital needs and have not only been underserved in recent years by traditional providers of capital such as banks and the public debt markets, but also for a variety of reasons may prefer working with experienced non-bank lenders. Our origination strategy focuses on the middle market private equity community. This financing is utilized for a variety of purposes, including to fund organic growth, acquisitions, recapitalizations, management buyouts and leveraged buyouts for companies with revenue generally under $500 million. In describing our business, we generally use the term “middle market” to refer to companies with EBITDA of between $3 million and $50 million annually; however, we typically invest in companies with EBITDA of less than $25 million. Notwithstanding the foregoing, the Advisor may determine whether companies qualify as “middle market” in its sole discretion, and we may from time to time invest in larger or smaller companies.


By investing predominantly in senior secured debt, we expect to reduce our risk of principal loss and deliver more stable returns over time as compared with investments in bonds, unsecured loans, mezzanine investments and public, private and project equity. However, we may also invest opportunistically in other parts of the capital structure, including senior secured stretch and unitranche facilities, second lien loans, mezzanine and mezzanine-related loans, and equity investments, as well as select other subordinated instruments either directly or through acquisitions in the secondary market.


The level of our investment activity depends on many factors, including the amount of debt and equity capital available to prospective portfolio companies, the level of merger, acquisition and refinancing activity for such companies, the availability of credit to finance transactions, the general economic environment and the competitive environment for the types of investments we make, all of which have been, and may continue to be, impacted by COVID-19.




3740



Revenues
We generate revenues primarily through the receipt of interest income from the investments we hold. In addition, we generate income from various loan origination and other fees and from dividends on direct equity investments. In addition, we may generate revenue in the form of commitment, origination, administration, amendment, and loan servicing fees.  Loan origination fees, original issue discount and market discount or premium are capitalized as part of the underlying cost of the investments and accreted or amortized over the life of the investment as interest income. We record contractual prepayment premiums on loans and debt securities as interest income.


Our debt investment portfolio consists of primarily floating rate loans. As of September 30, 2021,March 31, 2022, 100% of our debt investments, based on fair value, bore interest at floating rates, which may be subject to interest rate floors.  Variable-rate investments subject to a floor generally reset periodically to the applicable floor, only if the floor exceeds the index.  Trends in base interest rates, such as LIBOR, may affect our net investment income over the long term. In addition, our results may vary from period to period depending on the interest rates of new investments made during the period compared to investments that were sold or repaid during the period; these results reflect the characteristics of the particular portfolio companies that we invested in or exited during the period and not necessarily any trends in our business or macroeconomic trends.


Dividend income that we receive from our ownership of private securities is recorded pursuant to the terms of the respective investments.


Expenses
Our primary operating expenses include the payment of fees to the Advisor under the Investment Management Agreement, our allocable portion of overhead expenses under the Administration Agreement and other operating costs described below.


We are responsible for all costs and expenses incurred in connection with the operations of the Company and locating, structuring, evaluating, consummating, maintaining and disposing of investments and potential investments (whether or not the acquisition is consummated), including but not limited to legal, regulatory, accounting and other professional or third-party costs or disbursements including travel, rent or lodging, out-of-pocket expenses of the Advisor, the fees and expenses of any independent counsel engaged by the Advisor and out-of-pocket expenses related to third-party service providers (including loan servicer fees), placement agent fees and expenses, advertising expenses, litigation expenses, brokerage commissions, clearing and settlement charges and other transaction costs, custody fees, interest expenses, financing charges, initial and variation margin, broken deal expenses, compensation (which may include fees or performance-based compensation) of advisors, consultants and finders, joint venture partners, or other professionals relating to the Company’s operations and investments or potential investments (whether or not completed), which may include costs incurred to attend or sponsor networking and other similar events hosted by both for-profit and not-for-profit organizations (which may include organizations affiliated with current or prospective investors), specific expenses incurred in obtaining, developing or maintaining market data technology systems, research and other information and information service subscriptions utilized with respect to the Company’s investment program including fees to third party providers of research, portfolio risk management services (including the costs of risk management software or database packages), fees of pricing and valuation services, appraisal costs and brokerage expenses. We will also bear all commitment fees and any transfer or recording taxes, registration fees and other expenses in connection with acquisitions and dispositions of investments, and all expenses relating to the ownership and operation of investments, including taxes, interest, insurance, and other fees and expenses. Travel expenses may include first-class airfare and limited use of private or charter aircraft, as well as premium accommodations, in accordance with our Advisor’s policies related thereto.






3841


In addition, we will bear all costs of the administration of the Company, including but not limited to accounting expenses (including accounting systems) and expenses relating to audit, legal and regulatory expenses (including filings with U.S. and non-U.S. regulators and compliance obligations), costs associated with our reporting and compliance obligations under the 1940 Act and other applicable U.S. federal and state securities laws, fees and expenses of any administrators in connection with the administration of the Company, expenses relating to the maintenance of registered offices of the Company to the extent provided by unaffiliated service providers, temporary office space of non-employee consultants or auditors, blue sky and corporate filing fees and expenses, corporate licensing expenses, indemnification expenses, costs of holding any meetings or conferences of investors or their delegates or advisors (including meetings of the Advisor and related activities), Independent Directors’ fees and expenses, costs of any litigation or threatened litigation or costs of any investigation or legal inquiries involving Company activities (including regulatory sweeps), the cost of any liability insurance or fidelity coverage for the Company, including any directors’ and officers’ liability insurance and key-person life insurance policies, maintained with respect to liabilities arising in connection with the activities of our directors and officers conducted on behalf of the Company, costs associated with reporting and providing information to existing and prospective investors, including printing and mailing costs, wind-up and liquidation expenses, and any extraordinary expenses arising in connection with the operations of the Company.


We have agreed to repay the Advisor for initial organization and offering costs up to a maximum of $1.25 million, of which the Advisor has incurred approximately $1.1  million as of September 30, 2021.March 31, 2022.


From time to time, the Administrator or its affiliates may pay third-party providers of goods or services. We will reimburse the Administrator or such affiliates thereof for any such amounts paid on our behalf.


Leverage
We have obtained a subscription facilityCurrently, we do not intend to meet our capital needs.utilize leverage. We may borrow money from time to time within the levels permitted by the 1940 Act. Currently, we do not intend to utilize leverage outside of the subscription facility.


Impact of COVID-19
In late 2019 and early 2020, a novel coronavirus (SARS-CoV-2) and related respiratory disease ("COVID-19") emerged in China and spread rapidly across the world, including to the U.S. This outbreak has led and for an unknown period of time will continue to lead to disruptions in local, regional, national and global markets and economies affected thereby. The extent to which the COVID-19 pandemic will adversely impact our business, financial condition, liquidity and results of operations will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of this outbreak, and any future outbreaks.


It is clear that these types of events are negatively impacting and will, for at least some time, continue to negatively impact our business and portfolio companies and in many instances the impact will be profound. For example, smaller and middle market companies in which we may invest are being significantly impacted by these events and the uncertainty caused by these events. With respect to loans to such companies, we have been, and may continue to be impacted if, among other things, (i) amendments and waivers are granted (or are required to be granted) to borrowers permitting deferral of loan payments or allowing for payment-in-kind (“PIK”) interest payments, (ii) borrowers default on their loans, are unable to refinance their loans at maturity, or go out of business permanently, and/or (iii) the value of loans we hold decreases as a result of such events and the uncertainty they cause. Such events have caused us, and may continue to cause us, to suffer losses. We will also be negatively affected if the operations and effectiveness of our Adviser or a portfolio company (or any of the key personnel or service




39

providers of the foregoing) is compromised or if necessary or beneficial systems and processes are disrupted as a result of the interruptions to regular business operations caused by COVID-19.



42

With respect to our investments, we have taken, and will continue to take, steps to actively oversee all of our individual portfolio companies. These measures include, among other things, frequent communication with our portfolio company management teams and related private equity sponsors to understand the expected financial performance impact of the COVID-19 pandemic.


The effects of the COVID-19 pandemic on economic and market conditions have increased the demands to provide capital to our existing portfolio companies. We maintain adequate cash, capital commitments and additional borrowing capacity in reserve to meet any further such draw requests.

During the nine months ended September 30, 2021, we continued to experience an increase in our net assets resulting from operations due to an increase in investment income and unrealized gains from a recovery in investment valuations, after experiencing unrealized losses across the fair value of our investments resulting from the COVID-19 pandemic during the first nine months of 2020.


It is impossible to determine the scope of this outbreak, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have or the full potential impact on our business, the Advisor and portfolio companies. The impact of this outbreak, or any future outbreaks, while uncertain, could materially adversely affect our and our portfolio companies’ operating results.


Portfolio and Investment Activity
As of September 30, 2021,March 31, 2022, based on fair value, our portfolio consisted of 94.84%94.77% first lien senior secured debt investments, 0.01% sponsor subordinated note investments, and a 5.15% investment5.22% investments in an affiliated fund.funds.


As of September 30, 2021,March 31, 2022, we had investments in eighty-eightone hundred twenty-five portfolio companies with an aggregate fair value of $111.4$162.2 million.  As of December 31, 2020,2021, we had investments in fifty-oneone hundred twenty-one portfolio companies with an aggregate fair value of $79.5$159.1 million.





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Our investment activity for the three months ended September 30,March 31, 2022 and 2021 and 2020 is presented below (information presented herein is at par value unless otherwise indicated).


    Three Months Ended  Three Months Ended 
(Amounts in thousands) March 31, 2022  March 31, 2021 
Principal amount of investments committed (including add-ons):      
First lien senior secured debt investments $10,526  $19,615 
Sponsor subordinated note  -   2 
Investment in affiliated funds  238   130 
Total principal amount of investments committed $10,764  $19,747 
Principal amount of investments sold or repaid:        
First lien senior secured debt investments $(11,335) $(10,211)
Investment in affiliated funds  (8)  (2)
Total principal amount of investments sold or repaid $(11,343) $(10,213)
New debt investments(1):
        
New commitments $5,468  $18,409 
Number of new commitments in new portfolio companies(2)
  5   11 
Average new commitment amount $1,094  $1,674 
Weighted average term for new commitments (in years)  
5.4
   4.9 
Percentage of new commitments at floating rates  100.0%  100.0%
Percentage of new commitments at fixed rates  0.0%  0.0%
    Three Months  Three Months 
    Ended  Ended 
    September 30,  September 30, 
(Amounts in thousands) 2021  2020 
Principal amount of investments committed (including add-ons):      
First lien senior secured debt investments $19,499  $5,038 
Sponsor subordinated note  5   - 
Investment in affiliated fund  138   25 
Total principal amount of investments committed $19,642  $5,063 
Principal amount of investments sold or repaid:        
First lien senior secured debt investments $(6,532) $(331)
Investment in affiliated fund  1   (23)
Total principal amount of investments sold or repaid $(6,531) $(354)
New debt investments(1):
        
New commitments $17,550  $3,637 
Number of new commitments in new portfolio companies(2)
  14   2 
Average new commitment amount $1,254  $1,819 
Weighted average term for new commitments (in years)  4.8   4.3 
Percentage of new commitments at floating rates  100.0%  100.0%
Percentage of new commitments at fixed rates  0.0%  0.0%


(1) Amounts shown exclude add-on transactions to existing portfolio companies during the period.
(2) Number of new debt investment commitments represent commitments to a particular portfolio company.


As of September 30, 2021March 31, 2022 and December 31, 2020,2021, our investments consisted of the following:

   
September 30, 2021
  

   December 31, 2020		 
(Amounts in thousands) Amortized Cost  Fair Value  Amortized Cost  Fair Value 
First lien senior secured debt $105,693  $105,645  $76,415  $75,805 
Sponsor subordinated note  15   15   7   7 
Investment in affiliated fund  4,444   5,736   3,201   3,721 
Total investments $110,152  $111,396  $79,623  $79,533 


  

   March 31, 2022		  

   December 31, 2021		 
(Amounts in thousands) Amortized Cost  Fair Value  Amortized Cost  Fair Value 
First lien senior secured debt $153,473  $153,712  $151,054  $151,105 
Sponsor subordinated note  16   16   16   16 
Investment in affiliated funds  6,440   8,465   6,210   7,986 
Total investments $159,929  $162,193  $157,280  $159,107 





4144

The table below describes investments by industry composition based on fair value as of September 30, 2021March 31, 2022 and December 31, 2020:


  September 30, 2021   December 31, 2020 
Aerospace and defense 1.9% 2.7%
Chemicals 6.2% 8.4%
Commercial services and supplies 2.6% 7.0%
Construction and engineering 0.5% – 
Containers and packaging 5.6% 7.0%
Distributors 0.5% 1.5%
Diversified consumer services 8.9% 9.8%
Electronic equipment, instruments and components 1.3% 2.0%
Food and staples retailing 1.3% 0.9%
Food products 1.3% 1.3%
Gas utilities 1.2% 1.6%
Health care equipment and supplies 2.8% 0.8%
Health care providers and services 23.8% 24.0%
Health care technology 1.6% 1.6%
Household durables 2.5% – 
Internet and direct marketing retail 2.7% 2.5%
IT services 3.0% 3.4%
Leisure equipment and products 1.7% – 
Life sciences tools and services 1.0% – 
Machinery 1.6% 1.1%
Media 2.4% 3.4%
Metals and mining 2.1% 2.6%
Multisector holdings 5.2% 4.7%
Personal products 2.5% 3.5%
Pharmaceuticals 2.0% – 
Real estate management and development 1.5% – 
Software 3.0% 2.9%
Specialty retail 1.1% – 
Textiles, apparel and luxury goods 1.5% 2.0%
Trading companies and distributors 5.9% 5.3%
Water utilities 0.8% – 
Total 100.0% 100.0%
2021:


  March 31, 2022   December 31, 2021 
Aerospace and defense  1.3%  1.3%
Auto components  1.3%  1.4%
Chemicals  4.5%  4.6%
Commercial services and supplies  5.0%  3.7%
Construction and engineering  1.7%  1.6%
Containers and packaging  3.9%  3.9%
Distributors  0.3%  0.3%
Diversified consumer services  8.6%  8.9%
Electrical equipment  0.8%  0.8%
Electronic equipment, instruments and components  1.4%  1.4%
Food and staples retailing  2.3%  2.3%
Food products  1.0%  0.9%
Gas utilities  0.9%  0.9%
Health care equipment and supplies  2.6%  2.0%
Health care providers and services  22.6%  24.8%
Health care technology  1.2%  1.1%
Household durables  1.8%  1.8%
Internet and direct marketing retail  2.6%  2.6%
IT services  3.6%  3.8%
Leisure equipment and products  1.9%  1.9%
Leisure products  0.5%  0.5%
Life sciences tools and services  0.7%  0.7%
Machinery  2.1%  2.2%
Media  3.8%  3.7%
Metals and mining  1.6%  1.5%
Multisector holdings  5.2%  5.0%
Personal products  1.9%  1.7%
Pharmaceuticals  2.0%  2.1%
Professional services  0.5%  0.5%
Real estate management and development  1.1%  1.0%
Semiconductors and semiconductor equipment  0.4%  0.5%
Software  2.0%  2.1%
Specialty retail  2.6%  2.5%
Textiles, apparel and luxury goods  1.2%  1.2%
Trading companies and distributors  4.6%  4.3%
Water utilities  0.5%  0.5%
Total  100.0%  100.0%

As of September 30, 2021, 98.8%March 31, 2022, 99.0% of investments held were based in the United States and 1.2%1.0% were based in Canada. Investments held asAs of December 31, 2020 2021, 99.0% of investments held were based solely in the United States.States and 1.0% were based in Canada.



45

The weighted average yields and interest rates of our funded debt investments as of September 30, 2021March 31, 2022 and December 31, 20202021 were as follows:

  September 30, 2021  December 31, 2020 
Weighted average total yield of funded debt investments at cost  7.9%  7.7%
Weighted average total yield of funded debt investments at fair value  7.9%  7.9%
Weighted average interest rate of funded debt investments (1)
  6.9%  7.0%
Weighted average spread over LIBOR/CDOR of all floating rate funded debt investments  5.9%  5.9%


  March 31, 2022  December 31, 2021 
Weighted average total yield of funded debt investments at cost  9.3%  8.2%
Weighted average total yield of funded debt investments at fair value  9.2%  8.1%
Weighted average interest rate of funded debt investments (1)
  6.9%  6.9%
Weighted average spread over reference rates of all floating rate funded debt investments  5.9%  5.9%

(1) Calculated using actual interest rates in effect as of September 30, 2021March 31, 2022 and December 31, 20202021 based on borrower elections.




42
The weighted average yield of our funded debt investments is not the same as a return on investment for our shareholders but, rather, relates to a portion of our investment portfolio and is calculated before the payment of all of our and our subsidiaries’ fees and expenses. The weighted average yield was computed using the effective interest rates of each investment as of each respective date, including accretion of original issue discount, but excluding investments on non-accrual status, if any. There can be no assurance that the weighted average yield will remain at its current level.


Our Advisor monitors our portfolio companies on an ongoing basis. It monitors the financial trends of each portfolio company to determine if they are meeting their respective business plans and to assess the appropriate course of action with respect to each portfolio company. Our Advisor has several methods of evaluating and monitoring the performance and fair value of our investments, which may include the following:


• assessment of success of the portfolio company in adhering to its business plan and compliance with covenants;
• periodic and regular contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements and accomplishments;
• comparisons to other companies in the portfolio company’s industry; and
• review of monthly or quarterly financial statements and financial projections for portfolio companies.


As part of the monitoring process, our Advisor employs an investment rating system to categorize our investments. In addition to various risk management and monitoring tools, our Advisor rates the credit risk of all debt investments on a scale of A to F. This system is intended primarily to reflect the underlying risk of a portfolio investment relative to our initial cost basis in respect of such portfolio investment (i.e., at the time of origination or acquisition), although it may also take into account the performance of the portfolio company’s business, the collateral coverage of the investment and other relevant factors. The rating system is as follows:


Investment Ratings

 Description

A

 A loan supported by exceptional financial strength, stability and liquidity;
B

 As a general rule, a new transaction will be risk rated a “B” loan. Overtime, a “B” loan is supported by good financial strength, stability and liquidity;
C

 A loan that is exhibiting deteriorating trends, which if not corrected could jeopardize repayment of the debt. In general, a default by the borrower of one of its financial performance covenants (leverage or coverage ratios) would warrant downgrade of a loan to a risk rating of “C”;
D A loan that has a well-defined weakness that jeopardizes the repayment of the debt or the ongoing enterprise value of the borrower;

E

 A loan that has an uncured payment default; and
F An asset that is considered uncollectible or of such little value that its continuance as a booked asset is unwarranted.


46

Our Advisor rates the investments in our portfolio at least quarterly and it is possible that the rating of a portfolio investment may be reduced or increased over time. For investments rated C through F, our Advisor enhances its level of scrutiny over the monitoring of such portfolio company.





43
The following table shows the composition of our debt investments on the A to F rating scale as of September 30, 2021March 31, 2022 and December 31, 2020:2021:


 
 
   September 30, 2021		 December 31, 2020  
  
 
   March 31, 2022
 December 31, 2021
 
   Percentage of   Percentage of    Percentage of   Percentage of 
 Investments Total Investments Total  Investments Total Investments Total 
Investment Rating at Fair Value Debt Investments at Fair Value Debt Investments  at Fair Value Debt Investments at Fair Value Debt Investments 
(Amounts in thousands)                  
A $– 
–
 $
–
 
–
  $– 
–
 $
–
 
–
 
B  97,172 92.0% 68,960 91.0%  145,509 94.7% 141,945 93.9%
C  8,473 8.0
% 6,845 9.0%  8,203 5.3% 9,160 6.1%
D  – 
–
  
–
 
–
   – 
–
  
–
 
–
 
E

 – 
–
  
–
 
–
 
 – 
–
  
–
 
–
 
F   –  –
 –  –
   –  –
 –  –
Total $105,645  100.0%$75,805  100.0% $153,712  100.0%$151,105  100.0%

The following table shows the amortized cost of our performing and non-accrual debt investments as of September 30, 2021March 31, 2022 and December 31, 2020:
2021:


  

September 30, 2021  
  

   December 31, 2020		 
(Amounts in thousands) Amortized Cost  Percentage  Amortized Cost  Percentage 
Performing $105,693   100.0% $76,415   100.0%
Non-accrual  -   -   -   - 
Total $105,693   100.0% $76,415   100.0%

  

   March 31, 2022		  
December 31, 2021
 
(Amounts in thousands) Amortized Cost  Percentage  Amortized Cost  Percentage 
Performing $153,473   100.0% $151,054   100.0%
Non-accrual  -   -   -   - 
Total $153,473   100.0% $151,054   100.0%

Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected in full.  Accrued interest is generally reversed when a loan is placed on non-accrual status.  Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon the Advisor’s judgment regarding collectability.  Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in the Advisor’s judgment, are likely to remain current. Management may make exceptions to this treatment and determine to not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection.


ResultsSubscriptions and Drawdowns
As of OperationsMarch 31, 2022, the Company had 9,141,176 shares issued and outstanding with a par value of $0.001 per share.
The Company has entered into subscription agreements with investors providing for the private placement of the Company’s common shares. Under the terms of the subscription agreements, investors are required to fund drawdowns to purchase the Company’s common shares up to the amount of their respective capital commitment on an as-needed basis each time the Advisor delivers a drawdown notice to such investors.
During the three months ended March 31, 2022, there were no capital call notices delivered to investors.
During the three months ended March 31, 2021, the Advisor delivered the following capital call notice to investors:

   Three Months Ended March 31, 2021     
    Number of
  Aggregate Offering
   Common Share Common Shares
  Price
 Capital Drawdown Notice Date  Issuance Date Issued
  ($ in millions)
March 16, 2021
 March 30, 2021
 540,000 $
10.80
Total   540,000 $
10.80



Dividends
There were 0 dividends declared during the three months ended March 31, 2022 and 2021.

Note 10. Earnings Per Share
The following table representssets forth the operating resultscomputation of basic and diluted earnings (loss) per common share for the ninethree months ended September 30, 2021March 31, 2022 and 2020:2021:


Net
  Three Months  Three Months 
  Ended  Ended 
(Amounts in thousands, except share and per share amounts) March 31, 2022  March 31, 2021 
Net increase (decrease) in net assets resulting from operations $2,347  $1,303 
Weighted average shares of common stock outstanding - basic and diluted  9,141,176   4,488,000 
 Earnings (loss) per common share - basic and diluted $0.26
  $0.29
 

Note 11. Income Taxes
Taxable income generally differs from net increase (decrease) in net assets resulting from operations can vary from perioddue to periodtemporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized.

37
AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued
The Company makes certain adjustments to the classification of net assets as a result of various factors, includingpermanent book-to-tax differences, which include differences in the levelbook and tax basis of new investment commitments, expenses,certain assets and liabilities, and nondeductible federal taxes or losses among other items. To the recognition of realized gains and losses and changesextent these differences are permanent, they are charged or credited to additional paid in unrealized appreciation and depreciation on the investment portfolio.

   
  
       
   Three Months Ended  Three Months Ended  Nine Months Ended  Nine Months Ended 
(Amounts in thousands) September 30, 2021  September 30, 2020  September 30, 2021  September 30, 2020 
Total investment income $2,107  $1,268  $5,725  $3,597 
Less: expenses  (942)  (678)  (2,624)  (2,291)
Net investment income (loss)  1,165   590   3,101   1,306 
Net change in unrealized gain (loss)  311   760   1,342   (983)
Net realized gain (loss)  42   1   77   5 
Net increase (decrease) in net assets resulting from operations $1,518  $1,351  $4,520  $328 





44

Investment Income
Investment income for the three and nine months ended September 30, 2021 and 2020capital or total distributable earnings (losses), as appropriate. There were as follows:

   
  
       
   Three Months Ended  Three Months Ended  Nine Months Ended  Nine Months Ended 
(Amounts in thousands) September 30, 2021  September 30, 2020  September 30, 2021  September 30, 2020 
Interest income $2,013  $1,201  $5,424  $3,399 
Other income  94   67   301   198 
Total investment income $2,107  $1,268  $5,725  $3,597 

Total investment income increased to $2.1 million0 permanent differences for the three months ended September 30, 2021 from $1.3 millionMarch 31, 2022 and 2021.

Note 12.  Financial Highlights
The following are financial highlights for the same period in the prior year primarily driven by our deployment of capital and the increased balance of our investments. Total investment income increased to $5.7 million for the nine months ended September 30, 2021 from $3.6 million for the same period in the prior year primarily driven by our deployment of capital and the increased balance of our investments. The size of our investment portfolio at fair value increased to $111.4 million at September 30, 2021 from $64.2 million at September 30, 2020.

Expenses
Expenses for the three and nine months ended September 30, 2021 and 2020 were as follows:

  
  
       
  Three Months Ended  Three Months Ended  Nine Months Ended  Nine Months Ended 
(Amounts in thousands) September 30, 2021  September 30, 2020  September 30, 2021  September 30, 2020 
Income incentive fees $214  $38  $568  $114 
Management fees  155   94   416   259 
Accounting fees  107   98   317   323 
Insurance fees  90   125   312   368 
Professional fees  143   103   309   274 
Administrative fees  97   85   267   358 
Interest  66   67   190   283 
Directors' fees  45   45   135   135 
Other  25   35   110   126 
Offering costs  -   73   -   409 
Total gross expenses $942  $763  $2,624  $2,649 
Less waivers:                
Administrative fees waived  -   (85)  -   (358)
Total net expenses $942  $678  $2,624  $2,291 

Under the terms of the Administration Agreement and Investment Management Agreement, we reimburse the Administrator and Advisor, respectively, for services performed for us. In addition, pursuant to the terms of these agreements, the Administrator and Advisor may delegate its obligations under these agreements to an affiliate or to a third party and we reimburse the Administrator and Advisor for any services performed for us by such affiliate or third party.

For the three and nine months ended September 30, 2021, the Administrator charged approximately $0.1 and $0.3 million, respectively, for certain costs and expenses allocable to the Company under the terms of the Administration Agreement.  For the three and nine months ended September 30, 2020, the Administrator had the option to charge approximately $0.1 million and $0.4 million, respectively, for certain costs and expenses allocable to the Company under the terms of the Administration Agreement, all of which were waived and borne by the Administrator for those periods.

Total net expenses increased to approximately $0.9 million from 0.7 million, forcommon share outstanding during the three months ended September 30, 2021March 31, 2022 and 2020, respectively, primarily due2021:

   Three Months  Three Months 
   Ended  Ended 
   March 31,  March 31, 
(Amounts in thousands, except share and per share amounts) 2022
  2021
 
Per share data:      
Net asset value, beginning of period $20.14  $19.75 
Net investment income (loss)(1)
  0.21   0.20 
Net realized and unrealized gain (loss) on investment transactions(1)
  0.05   0.09 
Total from operations  0.26   0.29 
Impact of issuance of common stock  0   (0.01)
Total increase (decrease) in net assets  0.26   0.28 
Net asset value, end of period $20.40  $20.03 
Shares outstanding, end of period  9,141,176   5,022,000 
Total return(2)(3)
  1.3%
  1.4%
Ratios / supplemental data        
Ratio of gross expenses to average net assets(3)(4)(5)
  0.6%  0.9%
Ratio of net expenses to average net assets(3)(4)(6)
  0.6%  0.9%
Ratio of net investment income (loss) to average net assets(3)(4)
  1.0%  1.0%
Net assets, end of period $186,445  $100,604 
Weighted average shares outstanding  9,141,176   4,488,000 
Total capital commitments, end of period $216,000  $216,000 
Ratio of total contributed capital to total committed capital, end of period  85.0%  46.5%
Portfolio turnover rate(7)
  6.8%  11.7%
Asset coverage ratio(8)
  N/A   N/A 
(1)
The per share data was derived using the weighted average shares outstanding during the period.
(2)
Total return is calculated as the change in net asset value ("NAV") per share during the period, plus distributions per share, if any, divided by the NAV per share at
the beginning of the period.
(3)
Not annualized.
(4)
Average net assets are computed using the average balance of net assets at the end of each month of the reporting period.
(5)
Ratio of gross expenses to average net assets is computed using expenses before waivers from the Administrator, if applicable.
(6)
Ratio of net expenses to average net assets is computed using total expenses net of waivers from the Administrator, if applicable.
(7)
Portfolio turnover rate is calculated using the lesser of total sales or total purchases over the average of the investments at fair value for the periods reported.
(8)
Asset coverage ratio is equal to (i) the sum of (A) net assets at the end of the period and (B) total debt outstanding at the end of the
period, divided by (ii) total debt outstanding at the end of the period. The ratio is not applicable as of March 31, 2022 as there was no
debt outstanding during the period.

Note 13.  Subsequent Events
The Company’s management evaluated subsequent events through the date of issuance of these consolidated financial statements.  There have been no subsequent events that occurred that would require disclosure in, or would be required to increasesbe recognized in, income incentive feesthese consolidated financial statements, except as discussed below.
On April 15, 2022, the Board declared a dividend of $0.20 per share on the Company’s common stock, which was paid on April 29, 2022 to stockholders of record at the close of business on April 18, 2022.

On May, 4, 2022, the Company terminated the Subscription Facility's revolving credit agreement with the Lender.

38
Item 2. Management’s Discussion and management fees,Analysis of Financial Condition and partially offset by decreases in offering costs. These increases in fees were largely driven byResults of Operations.
In this quarterly report on Form 10-Q, or this "report," we refer to AG Twin Brook BDC, Inc and it’s consolidated subsidiaries. as "we," "us," the "Company," or "our," unless we specifically state otherwise or the context indicates otherwise. We refer to our deployment of capitalinvestment adviser, AG Twin Brook Manager, LLC, as our "Advisor," and increased balancewe refer to the direct parent company of our investments.Advisor, Angelo, Gordon & Co., L.P., as "Angelo Gordon." Angelo Gordon serves as the Company’s Administrator and may also be referred to herein as “Administrator”.



Forward-Looking Statements
45
Total net expenses remained relatively consistent at approximately $2.6 millionThis report includes estimates, projections, statements relating to our business plans, objectives, and 2.3 million, respectively,expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may appear throughout this report, including the following sections: “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” (Part II, Item 1A of this Form 10-Q). These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, returns, results of operations, plans, yields, objectives, the composition of our portfolio, actions by governmental entities, including the U.S. Department of the Treasury and the Federal Reserve, and the potential effects of actual and proposed legislation on us, our views on certain macroeconomic trends, and the impact of COVID-19. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements, which speak only as of the date made, and urge you to carefully consider the risks identified under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the nine monthsyear ended September 30,December 31, 2021 (our “2021 10-K”). Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.
The following Management’s Discussion and 2020, primarily dueAnalysis of Financial Condition and Results of Operations (“MD&A”) is intended to increaseshelp the reader understand the results of operations and financial condition of AG Twin Brook BDC, Inc. This MD&A is provided as a supplement to, and should be read in income incentive feesconjunction with our 2021 10-K, our consolidated financial statements and management fees, and partially offset by decreases in offering costs and interest expense. These increases in fees were largely driven by our deploymentthe accompanying notes to consolidated financial statements (Part I, Item 1 of capital and increased balancethis report).

Overview
AG Twin Brook BDC, Inc. is a Delaware corporation formed on February 4, 2016.  We have elected to be regulated as a Business Development Company (“BDC”) under the Investment Company Act of our investments.

Income Taxes, including Excise Taxes
We1940, as amended (the “1940 Act”).  In addition, for tax purposes, we have elected to be treated as a RICRegulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).  We were formed to provide risk-adjusted returns and current income to investors by investing primarily in middle market companies.
We are managed by our Advisor, a wholly-owned subsidiary of Angelo Gordon.  The Advisor is registered as an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940.  Subject to the overall supervision of our board of directors (the “Board”), our Advisor manages our day-to-day operations, and provides investment advisory and management services to us.  Our Advisor will be responsible for originating prospective investments, conducting

39

research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring our investments, and monitoring our investments and portfolio companies on an ongoing basis.

We conduct private offerings (each, a “Private Offering”), where investors make a capital commitment to purchase shares of our common stock pursuant to a subscription agreement entered into with us.  Investors will be required to make capital contributions to purchase shares of our common stock each time the Company delivers a drawdown notice. The initial closing of the Private Offering occurred on July 19, 2019 (the “Initial Closing”).  As of March 31, 2022, we had $216 million in total capital commitments from investors.  Upon the earlier to occur of (i) a Qualified IPO (as defined below), and (ii) the five year anniversary of the Initial Closing, investors will be released from any further obligation to purchase additional shares, subject to certain exceptions. A “Qualified IPO” is an initial public offering (“IPO”) of our common stock that results in an unaffiliated public float of at least the lower of (A) $60 million and (B) 17.5% of the aggregate capital commitments received prior to the date of such initial public offering.
As a BDC, we must invest at least 70% of our assets in “eligible portfolio companies,” generally, U.S. private operating companies (or small U.S. public operating companies with a market capitalization of less than $250 million). As a BDC, we may also invest up to 30% of our portfolio in non-eligible portfolio company investments, such as investments in non-U.S. companies, which may include investments in a “passive foreign investment company” (a “PFIC”).  Because we have elected to be regulated as a BDC, and we intend to operate in a manner so as to continue to qualify for the tax treatment applicable to RICs. To qualify for tax treatment as a RIC under the Code, our portfolio will also be subject to the diversification and other requirements under the Code.

Investments
We invest principally in privately originated senior secured loans to U.S. middle market companies, which we must,believe have consistent capital needs and have not only been underserved in recent years by traditional providers of capital such as banks and the public debt markets, but also for a variety of reasons may prefer working with experienced non-bank lenders. Our origination strategy focuses on the middle market private equity community. This financing is utilized for a variety of purposes, including to fund organic growth, acquisitions, recapitalizations, management buyouts and leveraged buyouts for companies with revenue generally under $500 million. In describing our business, we generally use the term “middle market” to refer to companies with EBITDA of between $3 million and $50 million annually; however, we typically invest in companies with EBITDA of less than $25 million. Notwithstanding the foregoing, the Advisor may determine whether companies qualify as “middle market” in its sole discretion, and we may from time to time invest in larger or smaller companies.

By investing predominantly in senior secured debt, we expect to reduce our risk of principal loss and deliver more stable returns over time as compared with investments in bonds, unsecured loans, mezzanine investments and public, private and project equity. However, we may also invest opportunistically in other parts of the capital structure, including senior secured stretch and unitranche facilities, second lien loans, mezzanine and mezzanine-related loans, and equity investments, as well as select other subordinated instruments either directly or through acquisitions in the secondary market.

The level of our investment activity depends on many factors, including the amount of debt and equity capital available to prospective portfolio companies, the level of merger, acquisition and refinancing activity for such companies, the availability of credit to finance transactions, the general economic environment and the competitive environment for the types of investments we make, all of which have been, and may continue to be, impacted by COVID-19.


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Revenues
We generate revenues primarily through the receipt of interest income from the investments we hold. In addition, we generate income from various loan origination and other fees and from dividends on direct equity investments. In addition, we may generate revenue in the form of commitment, origination, administration, amendment, and loan servicing fees.  Loan origination fees, original issue discount and market discount or premium are capitalized as part of the underlying cost of the investments and accreted or amortized over the life of the investment as interest income. We record contractual prepayment premiums on loans and debt securities as interest income.

Our debt investment portfolio consists of primarily floating rate loans. As of March 31, 2022, 100% of our debt investments, based on fair value, bore interest at floating rates, which may be subject to interest rate floors.  Variable-rate investments subject to a floor generally reset periodically to the applicable floor, only if the floor exceeds the index.  Trends in base interest rates, such as LIBOR, may affect our net investment income over the long term. In addition, our results may vary from period to period depending on the interest rates of new investments made during the period compared to investments that were sold or repaid during the period; these results reflect the characteristics of the particular portfolio companies that we invested in or exited during the period and not necessarily any trends in our business or macroeconomic trends.

Dividend income that we receive from our ownership of private securities is recorded pursuant to the terms of the respective investments.

Expenses
Our primary operating expenses include the payment of fees to the Advisor under the Investment Management Agreement, our allocable portion of overhead expenses under the Administration Agreement and other operating costs described below.

We are responsible for all costs and expenses incurred in connection with the operations of the Company and locating, structuring, evaluating, consummating, maintaining and disposing of investments and potential investments (whether or not the acquisition is consummated), including but not limited to legal, regulatory, accounting and other professional or third-party costs or disbursements including travel, rent or lodging, out-of-pocket expenses of the Advisor, the fees and expenses of any independent counsel engaged by the Advisor and out-of-pocket expenses related to third-party service providers (including loan servicer fees), placement agent fees and expenses, advertising expenses, litigation expenses, brokerage commissions, clearing and settlement charges and other transaction costs, custody fees, interest expenses, financing charges, initial and variation margin, broken deal expenses, compensation (which may include fees or performance-based compensation) of advisors, consultants and finders, joint venture partners, or other professionals relating to the Company’s operations and investments or potential investments (whether or not completed), which may include costs incurred to attend or sponsor networking and other similar events hosted by both for-profit and not-for-profit organizations (which may include organizations affiliated with current or prospective investors), specific expenses incurred in obtaining, developing or maintaining market data technology systems, research and other information and information service subscriptions utilized with respect to the Company’s investment program including fees to third party providers of research, portfolio risk management services (including the costs of risk management software or database packages), fees of pricing and valuation services, appraisal costs and brokerage expenses. We will also bear all commitment fees and any transfer or recording taxes, registration fees and other expenses in connection with acquisitions and dispositions of investments, and all expenses relating to the ownership and operation of investments, including taxes, interest, insurance, and other fees and expenses. Travel expenses may include first-class airfare and limited use of private or charter aircraft, as well as premium accommodations, in accordance with our Advisor’s policies related thereto.


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In addition, we will bear all costs of the administration of the Company, including but not limited to accounting expenses (including accounting systems) and expenses relating to audit, legal and regulatory expenses (including filings with U.S. and non-U.S. regulators and compliance obligations), costs associated with our reporting and compliance obligations under the 1940 Act and other applicable U.S. federal and state securities laws, fees and expenses of any administrators in connection with the administration of the Company, expenses relating to the maintenance of registered offices of the Company to the extent provided by unaffiliated service providers, temporary office space of non-employee consultants or auditors, blue sky and corporate filing fees and expenses, corporate licensing expenses, indemnification expenses, costs of holding any meetings or conferences of investors or their delegates or advisors (including meetings of the Advisor and related activities), Independent Directors’ fees and expenses, costs of any litigation or threatened litigation or costs of any investigation or legal inquiries involving Company activities (including regulatory sweeps), the cost of any liability insurance or fidelity coverage for the Company, including any directors’ and officers’ liability insurance and key-person life insurance policies, maintained with respect to liabilities arising in connection with the activities of our directors and officers conducted on behalf of the Company, costs associated with reporting and providing information to existing and prospective investors, including printing and mailing costs, wind-up and liquidation expenses, and any extraordinary expenses arising in connection with the operations of the Company.

We have agreed to repay the Advisor for initial organization and offering costs up to a maximum of $1.25 million, of which the Advisor has incurred approximately $1.1  million as of March 31, 2022.

From time to time, the Administrator or its affiliates may pay third-party providers of goods or services. We will reimburse the Administrator or such affiliates thereof for any such amounts paid on our behalf.

Leverage
Currently, we do not intend to utilize leverage. We may borrow money from time to time within the levels permitted by the 1940 Act.

Impact of COVID-19
In late 2019 and early 2020, a novel coronavirus (SARS-CoV-2) and related respiratory disease ("COVID-19") emerged in China and spread rapidly across the world, including to the U.S. This outbreak has led and for an unknown period of time will continue to lead to disruptions in local, regional, national and global markets and economies affected thereby. The extent to which the COVID-19 pandemic will adversely impact our business, financial condition, liquidity and results of operations will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of this outbreak, and any future outbreaks.

It is clear that these types of events are negatively impacting and will, for at least some time, continue to negatively impact our business and portfolio companies and in many instances the impact will be profound. For example, smaller and middle market companies in which we may invest are being significantly impacted by these events and the uncertainty caused by these events. With respect to loans to such companies, we have been, and may continue to be impacted if, among other things, distribute(i) amendments and waivers are granted (or are required to be granted) to borrowers permitting deferral of loan payments or allowing for payment-in-kind (“PIK”) interest payments, (ii) borrowers default on their loans, are unable to refinance their loans at maturity, or go out of business permanently, and/or (iii) the value of loans we hold decreases as a result of such events and the uncertainty they cause. Such events have caused us, and may continue to cause us, to suffer losses. We will also be negatively affected if the operations and effectiveness of our Adviser or a portfolio company (or any of the key personnel or service providers of the foregoing) is compromised or if necessary or beneficial systems and processes are disrupted as a result of the interruptions to regular business operations caused by COVID-19.


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With respect to our shareholders in each taxable year generally at least 90%investments, we have taken, and will continue to take, steps to actively oversee all of our investment company taxable income, as defined by the Code, and net tax-exempt income for that taxable year. To maintain our tax treatment as a RIC, we,individual portfolio companies. These measures include, among other things, intendfrequent communication with our portfolio company management teams and related private equity sponsors to makeunderstand the requisite distributionsexpected financial performance impact of the COVID-19 pandemic.

The effects of the COVID-19 pandemic on economic and market conditions have increased the demands to provide capital to our shareholders, which generally relieves us from corporate-level U.S. federal income taxes.existing portfolio companies. We maintain adequate cash, capital commitments and additional borrowing capacity in reserve to meet any further such draw requests.


DependingIt is impossible to determine the scope of this outbreak, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have or the full potential impact on our business, the levelAdvisor and portfolio companies. The impact of taxable income earned in a tax year, we can be expected to carry forward taxable income (including net capital gains, if any) in excessthis outbreak, or any future outbreaks, while uncertain, could materially adversely affect our and our portfolio companies’ operating results.

Portfolio and Investment Activity
As of current year dividend distributions from the current tax year into the next tax year and pay a nondeductible 4% U.S. federal excise taxMarch 31, 2022, based on such taxable income, as required. To the extent that we determine that our estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such income, we will accrue excise tax on estimated excess taxable income. For the nine months ended September 30, 2021 and 2020, we did not accrue any U.S. federal excise tax.

We conduct certain activities through our wholly-owned subsidiary, Twin Brook Equity XVIII Corp., a Delaware C corporation. Twin Brook Equity XVIII Corp. is treated as a corporation for United States federal income tax purposes and is subject to U.S. federal, state or local income tax. For the nine months ended September 30, 2021 and 2020, we did not accrue any U.S. federal tax expense.

Net Change in Unrealized Gains (Losses) on Investment Transactions
We fair value, our portfolio consisted of 94.77% first lien senior secured debt investments, quarterly0.01% sponsor subordinated note investments, and any changes5.22% investments in fair value are recorded as unrealized gains or losses.  During the three and nine months ended September 30, 2021 and 2020, net unrealized gains (losses) on our investment transactions were as follows:affiliated funds.


  Three Months Three Months     
  Ended Ended Nine Months Ended Nine Months Ended 
(Amounts in thousands)September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 
Net change in unrealized gain (loss) on investments$307 $760 $1,334 $(983)
Net change in unrealized gain (loss) on foreign currency forward contracts 4  -  8  - 
Net change in unrealized gain (loss) on investment transactions$311 $760 $1,342 $(983)


For the three and nine months ended September 30, 2021, the net unrealized gain was primarily driven byAs of March 31, 2022, we had investments in one hundred twenty-five portfolio companies with an increase in theaggregate fair value of our investments as compared to$162.2 million.  As of December 31, 2020. The primary drivers of our portfolio's unrealized gains from debt2021, we had investments were improved market conditions and credit spreads tightening during the nine months ended September 30, 2021. The unrealized gains were also driven by improved performance of equity investments held by Twin Brook Equity Holdings, LLC, that increased our net asset value in the affiliated fund during the nine months ended September 30, 2021.

For the nine months ended September 30, 2020, the net unrealized loss was primarily driven by a decrease in theone hundred twenty-one portfolio companies with an aggregate fair value of our investments as compared to December 31, 2019.  A majority of the decrease occurred particularly during$159.1 million.



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Our investment activity for the three months ended March 31, 2020,2022 and 2021 is presented below (information presented herein is at par value unless otherwise indicated).

    Three Months Ended  Three Months Ended 
(Amounts in thousands) March 31, 2022  March 31, 2021 
Principal amount of investments committed (including add-ons):      
First lien senior secured debt investments $10,526  $19,615 
Sponsor subordinated note  -   2 
Investment in affiliated funds  238   130 
Total principal amount of investments committed $10,764  $19,747 
Principal amount of investments sold or repaid:        
First lien senior secured debt investments $(11,335) $(10,211)
Investment in affiliated funds  (8)  (2)
Total principal amount of investments sold or repaid $(11,343) $(10,213)
New debt investments(1):
        
New commitments $5,468  $18,409 
Number of new commitments in new portfolio companies(2)
  5   11 
Average new commitment amount $1,094  $1,674 
Weighted average term for new commitments (in years)  
5.4
   4.9 
Percentage of new commitments at floating rates  100.0%  100.0%
Percentage of new commitments at fixed rates  0.0%  0.0%

(1) Amounts shown exclude add-on transactions to existing portfolio companies during the period.
(2) Number of new debt investment commitments represent commitments to a particular portfolio company.

As of March 31, 2022 and December 31, 2021, our investments consisted of the following:

  

   March 31, 2022		  

   December 31, 2021		 
(Amounts in thousands) Amortized Cost  Fair Value  Amortized Cost  Fair Value 
First lien senior secured debt $153,473  $153,712  $151,054  $151,105 
Sponsor subordinated note  16   16   16   16 
Investment in affiliated funds  6,440   8,465   6,210   7,986 
Total investments $159,929  $162,193  $157,280  $159,107 



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The table below describes investments by industry composition based on fair value as of March 31, 2022 and December 31, 2021:

  March 31, 2022   December 31, 2021 
Aerospace and defense  1.3%  1.3%
Auto components  1.3%  1.4%
Chemicals  4.5%  4.6%
Commercial services and supplies  5.0%  3.7%
Construction and engineering  1.7%  1.6%
Containers and packaging  3.9%  3.9%
Distributors  0.3%  0.3%
Diversified consumer services  8.6%  8.9%
Electrical equipment  0.8%  0.8%
Electronic equipment, instruments and components  1.4%  1.4%
Food and staples retailing  2.3%  2.3%
Food products  1.0%  0.9%
Gas utilities  0.9%  0.9%
Health care equipment and supplies  2.6%  2.0%
Health care providers and services  22.6%  24.8%
Health care technology  1.2%  1.1%
Household durables  1.8%  1.8%
Internet and direct marketing retail  2.6%  2.6%
IT services  3.6%  3.8%
Leisure equipment and products  1.9%  1.9%
Leisure products  0.5%  0.5%
Life sciences tools and services  0.7%  0.7%
Machinery  2.1%  2.2%
Media  3.8%  3.7%
Metals and mining  1.6%  1.5%
Multisector holdings  5.2%  5.0%
Personal products  1.9%  1.7%
Pharmaceuticals  2.0%  2.1%
Professional services  0.5%  0.5%
Real estate management and development  1.1%  1.0%
Semiconductors and semiconductor equipment  0.4%  0.5%
Software  2.0%  2.1%
Specialty retail  2.6%  2.5%
Textiles, apparel and luxury goods  1.2%  1.2%
Trading companies and distributors  4.6%  4.3%
Water utilities  0.5%  0.5%
Total  100.0%  100.0%

As of March 31, 2022, 99.0% of investments held were based in the United States and 1.0% were based in Canada. As of December 31, 2021, 99.0% of investments held were based in the United States and 1.0% were based in Canada.


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The weighted average yields and interest rates of our funded debt investments as of March 31, 2022 and December 31, 2021 were as follows: 

  March 31, 2022  December 31, 2021 
Weighted average total yield of funded debt investments at cost  9.3%  8.2%
Weighted average total yield of funded debt investments at fair value  9.2%  8.1%
Weighted average interest rate of funded debt investments (1)
  6.9%  6.9%
Weighted average spread over reference rates of all floating rate funded debt investments  5.9%  5.9%

(1) Calculated using actual interest rates in effect as of March 31, 2022 and December 31, 2021 based on borrower elections.

The weighted average yield of our funded debt investments is not the same as a return on investment for our shareholders but, rather, relates to a portion of our investment portfolio and is calculated before the payment of all of our and our subsidiaries’ fees and expenses. The weighted average yield was computed using the effective interest rates of each investment as of each respective date, including accretion of original issue discount, but excluding investments on non-accrual status, if any. There can be no assurance that the weighted average yield will remain at its current level.

Our Advisor monitors our portfolio companies on an ongoing basis. It monitors the financial trends of each portfolio company to determine if they are meeting their respective business plans and to assess the appropriate course of action with respect to each portfolio company. Our Advisor has several methods of evaluating and monitoring the performance and fair value increased recovered slightly from then by September 30, 2020.  The primary drivers of our portfolio's unrealized losses were increased market volatilityinvestments, which may include the following:

• assessment of success of the portfolio company in adhering to its business plan and compliance with covenants;
• periodic and regular contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements and accomplishments;
• comparisons to other companies in the portfolio company’s industry; and
• review of monthly or quarterly financial statements and financial projections for portfolio companies.

As part of the monitoring process, our Advisor employs an investment rating system to categorize our investments. In addition to various risk management and monitoring tools, our Advisor rates the credit spreads widening duringrisk of all debt investments on a scale of A to F. This system is intended primarily to reflect the nine months ended September 30, 2020.underlying risk of a portfolio investment relative to our initial cost basis in respect of such portfolio investment (i.e., at the time of origination or acquisition), although it may also take into account the performance of the portfolio company’s business, the collateral coverage of the investment and other relevant factors. The rating system is as follows:


Investment Ratings
Description
A
A loan supported by exceptional financial strength, stability and liquidity;
B
As a general rule, a new transaction will be risk rated a “B” loan. Overtime, a “B” loan is supported by good financial strength, stability and liquidity;
C
A loan that is exhibiting deteriorating trends, which if not corrected could jeopardize repayment of the debt. In general, a default by the borrower of one of its financial performance covenants (leverage or coverage ratios) would warrant downgrade of a loan to a risk rating of “C”;
DA loan that has a well-defined weakness that jeopardizes the repayment of the debt or the ongoing enterprise value of the borrower;
E
A loan that has an uncured payment default; and
FAn asset that is considered uncollectible or of such little value that its continuance as a booked asset is unwarranted.

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Net Realized Gains (Losses) on Investment TransactionsOur Advisor rates the investments in our portfolio at least quarterly and it is possible that the rating of a portfolio investment may be reduced or increased over time. For investments rated C through F, our Advisor enhances its level of scrutiny over the monitoring of such portfolio company.

The realized gains and losses on fully and partially exited portfolio companies and foreign currency transactions duringfollowing table shows the three and nine months ended September 30, 2021 and 2020, were as follows:

  


     
  Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended 
(Amounts in thousands)September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 
Net realized gain (loss) on investments$35  $1 $122 $5 
Net realized gain (loss) on foreign currency transactions 7   –  (45) – 
Net realized gain (loss) on investment transactions$42  $1 $77 $5 

The increase in realized gains during the three and nine months ended September 30, 2021 as compared to the three and nine months ended September 30, 2020 was due to increased paydown activity given the increased sizecomposition of our portfolio.

Financial Condition, Liquidity, and Capital Resources
Our liquidity and capital resources are generated primarily fromdebt investments on the proceeds of capital drawdowns of our privately placed capital commitments, cash flows from interest, dividends and fees earned from our investments and principal repayments, and our subscription facility. The primary uses of our cash are (1) investments in portfolio companies and other investmentsA to comply with certain portfolio diversification requirements, (2) the cost of operations (including paying our Advisor and Administrator), (3) debt service of any borrowings and (4) cash distributions to the holders of our stock.

We may from time to time increase the size of our existing subscription facility. Any such incurrence would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors. In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to incur borrowings, issue debt securities or issue preferred stock, if immediately after the borrowing or issuance, the ratio of total assets (less total liabilities other than indebtedness) to total indebtedness plus preferred stock, is at least 200%. There were no outstanding borrowingsF rating scale as of September 30, 2021March 31, 2022 and December 31, 2020. We seek to carefully consider2021:

  
 
   March 31, 2022
 December 31, 2021
 
    Percentage of   Percentage of 
  Investments Total Investments Total 
Investment Rating at Fair Value Debt Investments at Fair Value Debt Investments 
(Amounts in thousands)         
A $–  
–
 $
–
  
–
 
B  145,509  94.7% 141,945  93.9%
C  8,203  5.3% 9,160  6.1%
D  –  
–
  
–
  
–
 
E

 –  
–
  
–
  
–
 
 F   –  –
 –  –
Total $153,712  100.0%$151,105  100.0%

The following table shows the amortized cost of our unfunded commitments for the purpose of planning our ongoing financial leverage. Further, we maintain sufficient borrowing capacity within the 200% asset coverage limitation to cover any outstanding unfunded commitments we are required to fund.

Cashperforming and non-accrual debt investments as of September 30, 2021, taken together with our uncalled capital commitmentsMarch 31, 2022 and December 31, 2021:

  

   March 31, 2022		  
December 31, 2021
 
(Amounts in thousands) Amortized Cost  Percentage  Amortized Cost  Percentage 
Performing $153,473   100.0% $151,054   100.0%
Non-accrual  -   -   -   - 
Total $153,473   100.0% $151,054   100.0%

Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected in full.  Accrued interest is generally reversed when a loan is placed on non-accrual status.  Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon the Advisor’s judgment regarding collectability.  Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in the Advisor’s judgment, are likely to remain current. Management may make exceptions to this treatment and determine to not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of $91.8 million and available debt capacity of $10.1 million, is expected to be sufficient for our investing activities and to conduct our operations.collection.


As of September 30, 2021, we had $14.6 million in cash.  During the nine months ended September 30, 2021, we used $27.0 million in cash for operating activities, primarily as a result of funding portfolio investments of $55.7 million, partially offset by sales and paydowns of portfolio investments of $25.7 million, and other operating activities of $3.0 million.  Cash provided by financing activities was $31.2 million during the period, which was primarily the result of proceeds from the issuance of shares of $34.6 million, partially offset by dividend payments of $3.3 million.

As of September 30, 2020, we had $3.9 million in cash. During the nine months ended September 30, 2020, we used $23.7 million in cash for operating activities, primarily as a result of funding portfolio investments of $34.8 million, partially offset by sales of portfolio investments of $9.6 million, and other operating activities of $1.5 million. Cash provided by financing activities was $18.5 million during the period, which was primarily the result of proceeds from the issuance of shares of $24.8 million, partially offset by net payments on our subscription facility of $5.5 million, dividend payments of $0.7 million, and payments for deferred financing and offering costs of $0.1 million.


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Equity
Subscriptions and DrawdownsInvestor Commitments

As of September 30,March 31, 2022 and December 31, 2021, wethe Company had 6,199,809 shares issued and outstanding with$216.0 million in total capital commitments from investors ($32.4 million undrawn).  These undrawn capital commitments will no longer remain in effect following the completion of a par value of $0.001 per share. On October 13, 2021, we issued aQualified IPO.
NaN investors in the Company have aggregate capital call notice to investors relating to the sale of 805,806 shares of the common stock for an aggregate offering price of $16.2 million. The sale closed on October 27, 2021.

We have entered into subscription agreements with investors providing for the private placement of our common shares. Under the terms of the subscription agreements, investors are required to fund drawdowns to purchase our common shares up to the amount of their respective Capital Commitment on an as-needed basis each time our Advisor delivers a capital call notice to such investors.

During the nine months ended September 30, 2021 and 2020, our Advisor delivered the following capital call notices to investors:

Nine Months Ended September 30, 2021 
    Number of Aggregate Offering 
                                                                                Common Share Common Shares Price 
Capital Drawdown Notice DateIssuance Date Issued ($ in millions) 
March 16, 2021March 30, 2021  540,000 $10.80 
June 30, 2021July 15, 2021  802,493  16.20 
August 30, 2021September 15, 2021  375,316  7.56 
Total   1,717,809 $34.56 

Nine Months Ended September 30, 2020
    Number of Aggregate Offering 
                                                                                Common Share Common Shares Price 
Capital Drawdown Notice DateIssuance Date Issued ($ in millions) 
February 28, 2020March 13, 2020  810,000 $16.20 
June 11, 2020June 25, 2020  432,000  8.64 
Total   1,242,000 $24.84 

Dividends
The following table reflects dividend declared on sharescommitments representing 100% of the Company’s common stocktotal capital commitments. Such concentration of investor commitments could have a material effect on the Company.
Other Commitments and Contingencies
From time to time, the Company may become a party to certain legal proceedings during the nine months ended September 30, 2021 and 2020:

For the Nine Months Ended September 30, 2021 
Date Declared 
Record
Date
 Payment
 Date		 
Dividend
per Share
 
April 22, 2021 April 26, 2021 April 30, 2021 $0.20 
July 22, 2021 July 26, 2021 July 30, 2021 $0.20 

For the Nine Months Ended September 30, 2020 
Date Declared Record
Date		 
Payment
Date
 
Dividend
per Share
 
July 16, 2020 July 27, 2020 July 31, 2020 $0.20 

Debt
Subscription Facility
In accordance with the 1940 Act, we can borrow amounts such that our asset coverage, as defined in the 1940 Act, is at least 200% after such borrowings, subject to certain limitations. There were no outstanding borrowings asnormal course of September 30, 2021business.  As of March 31, 2022, and December 31, 2020.2021, management was not aware of any material pending or threatened litigation.



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36
On August 14, 2019, we entered into a revolving credit facility (the “Subscription Facility”), pursuant to a Revolving Credit Agreement, as amended, with Wells Fargo Bank, National Association (the “Lender”).  The Subscription Facility enables us to request loans from the Lender up to a maximum commitment of $15 million.  The borrowings under the Subscription Facility are collateralized by the eligible unfunded capital commitments of our investors.  The total amount available under the Subscription Facility may be reduced as a result of decreases in the unfunded capital commitments of our investors as well as other provisions of the Subscription Facility agreement.

Borrowings under the Subscription Facility bear interest at either (i) LIBOR plus the applicable margin of 1.50%, if the borrowing is a LIBOR Rate Loan or (ii) the Prime Rate plus the applicable margin of 0.50%, if the borrowing is a Reference Rate Loan . As of September 30, 2021 and December 31, 2020, there were no outstanding borrowings.  In addition, we pay an unused commitment fee of 0.20% per annum on the daily unused commitments of the Lender.  The maturity date of the Subscription Facility is August 12, 2022.
The Subscription Facility agreement subjects us to certain covenants including, but not limited to, providing financial information and requirements concerning compliance with certain financial tests and investor attributes.  As of September 30, 2021, we are in compliance with such covenants.
Debt obligations consisted of the following as of September 30, 2021 and December 31, 2020:
  As of September 30, 2021      
(Amounts in thousands) Maximum Principal Amount Committed  
Principal
Amount Outstanding
  
Principal Amount Available(1)
  Carrying Value 
Subscription facility $15,000  $–  $10,098  $– 
Total debt $15,000  $–  $10,098  $– 

(1)  The amount available reflects any limitations related to the Subscription Facility’s borrowing base.
     As of December 31, 2020
(Amounts in thousands) Maximum Principal Amount Committed  
Principal
Amount Outstanding
  
Principal Amount Available(1)
  Carrying Value 
Subscription facility $15,000  $–
 $13,900  $–
Total debt $15,000  $–
 $13,900  $–

(1)  The amount available reflects any limitations related to the Subscription Facility’s borrowing base.
For the three and nine months ended September 30, 2021 and 2020, the components of interest expense were as follows:
  Three Months  Three Months       
  Ended  Ended  Nine Months Ended  Nine Months Ended 
(Amounts in thousands) September 30, 2021  September 30, 2020  September 30, 2021  September 30, 2020 
Interest expense $8  $27  $24  $189 
Amortization of deferred financing costs  58   40   166   94 
Total interest expense $66  $67  $190  $283 
Average interest rate  1.77%  2.08%  2.46%  2.88%
Average daily borrowings $105  $217  $54  $5,553 
 

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Off-Balance Sheet Arrangements
Portfolio Company Commitments
Our investment portfolio may contain debt investments that are in the form of revolving lines of credit and unfunded delayed draw commitments, which require us to provide funding when requested by portfolio companies in accordance with the terms of the underlying loan agreements.  Unfunded portfolio company commitments and funded debt investments are presented on the consolidated schedule of investments at fair value.  Unrealized appreciation or depreciation, if any, is included in the consolidated statement of assets and liabilities and consolidated statement of operations.

As of September 30, 2021 and December 31, 2020, the Company had the following outstanding commitments to fund investments in current portfolio companies:

Portfolio Company September 30, 2021 December 31, 2020 
First lien senior secured debt(1)
 (Amounts in thousands) (Amounts in thousands) 
50Floor, LLC $199 $199 
Abrasive Technology Intermediate, LLC  173  - 
Advanced Lighting Acquisition, LLC  324  162 
AFC Industries, Inc.  250  - 
Affinitiv, Inc.  248  248 
Agility Intermediate, Inc.  534  - 
ALM Media, LLC  873  971 
Altamira Material Solutions, LP  32  - 
AM Buyer, LLC  111  108 
Anne Arundel Dermatology Management, LLC  354  780 
Apex Dental Partners, LLC  236  600 
Aptitude Health Holdings, LLC  240  - 
Aquatic Sales Solutions, LLC  38  135 
ASP Global Acquisition, LLC  534  534 
Banner Buyer, LLC  813  1,343 
BBG Intermediate Holdings, Inc.  165  686 
Beacon Oral Specialists Management LLC  311  - 
Behavior Frontiers, LLC  19  - 
BRTS Holdings, LLC  -  341 
Bio Agri Mix Holdings Inc.  89  - 
Brightview, LLC  427  - 
Canadian Orthodontic Partners Corp.  380  - 
Community Care Partners, LLC  263  - 
Copperweld Group, Inc.  228  400 
Cosmetic Solutions, LLC  710  710 
Data Source Intermediate Holdings, LLC  123  - 
DealerOn Inc.  314  314 
Diamondback Buyer, LLC  68  - 
Domino Equipment Company, LLC  79  - 
Edko Acquisition, LLC  38  - 
EH Management Company, LLC  38  - 
Empire Equipment Company, LLC  1,379  1,254 
EMSAR Acquisition LLC  567  - 
Engelman Baking Co., LLC  157  157 
E-Phoenix Acquisition Co. Inc.  75  - 

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AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) –— Continued

Portfolio Company September 30, 2021 December 31, 2020 
First lien senior secured debt(1)
 (Amounts in thousands) (Amounts in thousands) 
Formulated Buyer, LLC  $488  $- 
G2O Technologies, LLC  207  207 
Geriatric Medical and Surgical Supply, LLC 
300 
270 
Groundworks Operations, LLC  867  739 
Guardian Dentistry Practice Management, LLC  218  - 
Hydromax USA, LLC  205  330 
Icelandirect, LLC  33  - 
Industrial Dynamics Company, Ltd.  141  141 
Innovative FlexPak, LLC  408  627 
ISSA, LLC  131  - 
Jansy Packaging, LLC  706  676 
Kalkomey Enterprises, LLC  77  77 
Lakeshirts LLC  663  703 
Legility, LLC  123  123 
Leonard Group, Inc.  197  - 
Library Associates, LLC  127  211 
MacNeill Pride Group Corp.  218  - 
Mad Rose Company, LLC  104  - 
Mattco Forge, Inc.  506  506 
Millennia Patient Services, LLC  401  - 
Montway LLC  825  825 
Motis Brands, Inc.  115  - 
MRC Keeler Acquisition, LLC  300  300 
Nimlok Company, LLC  320  11 
NSG Buyer, Inc.  294  294 
NutriScience Innovations, LLC  131  - 
Peak Dental Services, LLC  337  636 
Peak Investment Holdings, LLC  908  809 
Perimeter Brands Intermediate Holdco LLC  -  210 
PPW Acquisition, LLC  38  - 
Reliable Medical Supply LLC  206  138 
Revival Animal Health, LLC  131  - 
Revolution Plastics Buyer, LLC  188  492 
RQM Buyer, Inc.  219  - 
RTP Acquisition, LLC  38  - 
SAMGI Buyer, Inc.  138  138 
SCA Buyer, LLC  459  - 
SCP ENT and Allergy Services, LLC  1,287  1,287 
SCP Eye Care Services, LLC  -  469 
Shearer Supply, LLC  113  - 
ShiftKey, LLC  94  - 
Silver Falls MSO, LLC  117  178 
SimiTree Acquisition LLC  1,065  - 
Southeast Primary Care Partners, LLC  525  525 
Southern Orthodontic Partners Management, LLC  281  - 
Spear Education, LLC  888  474 
Spectrum Solutions, LLC  267  - 


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Portfolio CompanySeptember 30, 2021December 31, 2020
First lien senior secured debt(1)
(Amounts in thousands)(Amounts in thousands)








Starwest Botanicals Acquisition, LLC  $174  $- 
Storm Smart Buyer LLC  131  - 
Teel Plastics, LLC 
324 
324 
Trademark Global, LLC  110  - 
Triad Technologies, LLC  314  282 
United Land Services Opco Parent, LLC  1,022  - 
Vanguard Packaging, LLC  356  535 
Varsity DuvaSawko Operating Corp.  474  474 
Vital Care Buyer, LLC  580  580 
Total unfunded portfolio company commitments $29,278 $22,533 

(1) Unfunded commitments denominated in currencies other than USD have been converted to USD using the exchange rate as of the applicable reporting date.


As of September 30, 2021 and December 31, 2020, approximately $188,000 and $181,000, respectively, of the Company's unfunded revolver commitments are reserved for letters of credit issued to third party beneficiaries on behalf of the Company's investments.Note 9.  Net Assets

We maintain sufficient borrowing capacity along with undrawn capital commitments of our investors to cover outstanding unfunded portfolio company commitments that we may be required to fund. We seek to carefully manage our unfunded portfolio company commitments for purposes of planning our ongoing financial leverage. Further, we maintain sufficient borrowing capacity within the 200% asset coverage ratio, along with undrawn capital commitments of our investors, to cover any outstanding portfolio company unfunded commitments we are required to fund.

Investor Commitments

As of September 30, 2021March 31, 2022 and December 31, 2020,2021, the Company had $216.0 million in total capital commitments from investors ($91.832.4 million undrawn).  These undrawn capital commitments will no longer remain in effect following the completion of a Qualified IPO.
NaN investors in the Company have aggregate capital commitments representing 100% of the Company’s total capital commitments. Such concentration of investor commitments could have a material effect on the Company.
Other Commitments and Contingencies
From time to time, the Company may become a party to certain legal proceedings during the normal course of business.  As of March 31, 2022, and December 31, 2021, management was not aware of any material pending or threatened litigation.

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AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued

Note 9.  Net Assets
Subscriptions and Drawdowns
As of March 31, 2022, the Company had 9,141,176 shares issued and outstanding with a par value of $0.001 per share.
The Company has entered into subscription agreements with investors providing for the private placement of the Company’s common shares. Under the terms of the subscription agreements, investors are required to fund drawdowns to purchase the Company’s common shares up to the amount of their respective capital commitment on an as-needed basis each time the Advisor delivers a drawdown notice to such investors.
During the three months ended March 31, 2022, there were no capital call notices delivered to investors.
During the three months ended March 31, 2021, the Advisor delivered the following capital call notice to investors:

   Three Months Ended March 31, 2021     
    Number of
  Aggregate Offering
   Common Share Common Shares
  Price
 Capital Drawdown Notice Date  Issuance Date Issued
  ($ in millions)
March 16, 2021
 March 30, 2021
 540,000 $
10.80
Total   540,000 $
10.80



Dividends
There were 0 dividends declared during the three months ended March 31, 2022 and 2021.

Note 10. Earnings Per Share
The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three months ended March 31, 2022 and 2021:

  Three Months  Three Months 
  Ended  Ended 
(Amounts in thousands, except share and per share amounts) March 31, 2022  March 31, 2021 
Net increase (decrease) in net assets resulting from operations $2,347  $1,303 
Weighted average shares of common stock outstanding - basic and diluted  9,141,176   4,488,000 
 Earnings (loss) per common share - basic and diluted $0.26
  $0.29
 

Note 11. Income Taxes
Taxable income generally differs from net increase (decrease) in net assets resulting from operations due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized.

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AG Twin Brook BDC, Inc.
Notes to Consolidated Financial Statements (Unaudited) — Continued
The Company makes certain adjustments to the classification of net assets as a result of permanent book-to-tax differences, which include differences in the book and tax basis of certain assets and liabilities, and nondeductible federal taxes or losses among other items. To the extent these differences are permanent, they are charged or credited to additional paid in capital or total distributable earnings (losses), as appropriate. There were 0 permanent differences for the three months ended March 31, 2022 and 2021.

Note 12.  Financial Highlights
The following are financial highlights for a common share outstanding during the three months ended March 31, 2022 and 2021:

   Three Months  Three Months 
   Ended  Ended 
   March 31,  March 31, 
(Amounts in thousands, except share and per share amounts) 2022
  2021
 
Per share data:      
Net asset value, beginning of period $20.14  $19.75 
Net investment income (loss)(1)
  0.21   0.20 
Net realized and unrealized gain (loss) on investment transactions(1)
  0.05   0.09 
Total from operations  0.26   0.29 
Impact of issuance of common stock  0   (0.01)
Total increase (decrease) in net assets  0.26   0.28 
Net asset value, end of period $20.40  $20.03 
Shares outstanding, end of period  9,141,176   5,022,000 
Total return(2)(3)
  1.3%
  1.4%
Ratios / supplemental data        
Ratio of gross expenses to average net assets(3)(4)(5)
  0.6%  0.9%
Ratio of net expenses to average net assets(3)(4)(6)
  0.6%  0.9%
Ratio of net investment income (loss) to average net assets(3)(4)
  1.0%  1.0%
Net assets, end of period $186,445  $100,604 
Weighted average shares outstanding  9,141,176   4,488,000 
Total capital commitments, end of period $216,000  $216,000 
Ratio of total contributed capital to total committed capital, end of period  85.0%  46.5%
Portfolio turnover rate(7)
  6.8%  11.7%
Asset coverage ratio(8)
  N/A   N/A 
(1)
The per share data was derived using the weighted average shares outstanding during the period.
(2)
Total return is calculated as the change in net asset value ("NAV") per share during the period, plus distributions per share, if any, divided by the NAV per share at
the beginning of the period.
(3)
Not annualized.
(4)
Average net assets are computed using the average balance of net assets at the end of each month of the reporting period.
(5)
Ratio of gross expenses to average net assets is computed using expenses before waivers from the Administrator, if applicable.
(6)
Ratio of net expenses to average net assets is computed using total expenses net of waivers from the Administrator, if applicable.
(7)
Portfolio turnover rate is calculated using the lesser of total sales or total purchases over the average of the investments at fair value for the periods reported.
(8)
Asset coverage ratio is equal to (i) the sum of (A) net assets at the end of the period and (B) total debt outstanding at the end of the
period, divided by (ii) total debt outstanding at the end of the period. The ratio is not applicable as of March 31, 2022 as there was no
debt outstanding during the period.

Note 13.  Subsequent Events
The Company’s management evaluated subsequent events through the date of issuance of these consolidated financial statements.  There have been no subsequent events that occurred that would require disclosure in, or would be required to be recognized in, these consolidated financial statements, except as discussed below.
On April 15, 2022, the Board declared a dividend of $0.20 per share on the Company’s common stock, which was paid on April 29, 2022 to stockholders of record at the close of business on April 18, 2022.

On May, 4, 2022, the Company terminated the Subscription Facility's revolving credit agreement with the Lender.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
In this quarterly report on Form 10-Q, or this "report," we refer to AG Twin Brook BDC, Inc and it’s consolidated subsidiaries. as "we," "us," the "Company," or "our," unless we specifically state otherwise or the context indicates otherwise. We refer to our investment adviser, AG Twin Brook Manager, LLC, as our "Advisor," and we refer to the direct parent company of our Advisor, Angelo, Gordon & Co., L.P., as "Angelo Gordon." Angelo Gordon serves as the Company’s Administrator and may also be referred to herein as “Administrator”.

Forward-Looking Statements
This report includes estimates, projections, statements relating to our business plans, objectives, and expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may appear throughout this report, including the following sections: “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” (Part II, Item 1A of this Form 10-Q). These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, returns, results of operations, plans, yields, objectives, the composition of our portfolio, actions by governmental entities, including the U.S. Department of the Treasury and the Federal Reserve, and the potential effects of actual and proposed legislation on us, our views on certain macroeconomic trends, and the impact of COVID-19. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements, which speak only as of the date made, and urge you to carefully consider the risks identified under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2021 (our “2021 10-K”). Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand the results of operations and financial condition of AG Twin Brook BDC, Inc. This MD&A is provided as a supplement to, and should be read in conjunction with our 2021 10-K, our consolidated financial statements and the accompanying notes to consolidated financial statements (Part I, Item 1 of this report).

Overview
AG Twin Brook BDC, Inc. is a Delaware corporation formed on February 4, 2016.  We have elected to be regulated as a Business Development Company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”).  In addition, for tax purposes, we have elected to be treated as a Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).  We were formed to provide risk-adjusted returns and current income to investors by investing primarily in middle market companies.
We are managed by our Advisor, a wholly-owned subsidiary of Angelo Gordon.  The Advisor is registered as an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940.  Subject to the overall supervision of our board of directors (the “Board”), our Advisor manages our day-to-day operations, and provides investment advisory and management services to us.  Our Advisor will be responsible for originating prospective investments, conducting

39

research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring our investments, and monitoring our investments and portfolio companies on an ongoing basis.

We conduct private offerings (each, a “Private Offering”), where investors make a capital commitment to purchase shares of our common stock pursuant to a subscription agreement entered into with us.  Investors will be required to make capital contributions to purchase shares of our common stock each time the Company delivers a drawdown notice. The initial closing of the Private Offering occurred on July 19, 2019 (the “Initial Closing”).  As of March 31, 2022, we had $216 million in total capital commitments from investors.  Upon the earlier to occur of (i) a Qualified IPO (as defined below), and (ii) the five year anniversary of the Initial Closing, investors will be released from any further obligation to purchase additional shares, subject to certain exceptions. A “Qualified IPO” is an initial public offering (“IPO”) of our common stock that results in an unaffiliated public float of at least the lower of (A) $60 million and $126.4(B) 17.5% of the aggregate capital commitments received prior to the date of such initial public offering.
As a BDC, we must invest at least 70% of our assets in “eligible portfolio companies,” generally, U.S. private operating companies (or small U.S. public operating companies with a market capitalization of less than $250 million). As a BDC, we may also invest up to 30% of our portfolio in non-eligible portfolio company investments, such as investments in non-U.S. companies, which may include investments in a “passive foreign investment company” (a “PFIC”).  Because we have elected to be regulated as a BDC, and we intend to continue to qualify as a RIC under the Code, our portfolio will also be subject to the diversification and other requirements under the Code.

Investments
We invest principally in privately originated senior secured loans to U.S. middle market companies, which we believe have consistent capital needs and have not only been underserved in recent years by traditional providers of capital such as banks and the public debt markets, but also for a variety of reasons may prefer working with experienced non-bank lenders. Our origination strategy focuses on the middle market private equity community. This financing is utilized for a variety of purposes, including to fund organic growth, acquisitions, recapitalizations, management buyouts and leveraged buyouts for companies with revenue generally under $500 million. In describing our business, we generally use the term “middle market” to refer to companies with EBITDA of between $3 million and $50 million annually; however, we typically invest in companies with EBITDA of less than $25 million. Notwithstanding the foregoing, the Advisor may determine whether companies qualify as “middle market” in its sole discretion, and we may from time to time invest in larger or smaller companies.

By investing predominantly in senior secured debt, we expect to reduce our risk of principal loss and deliver more stable returns over time as compared with investments in bonds, unsecured loans, mezzanine investments and public, private and project equity. However, we may also invest opportunistically in other parts of the capital structure, including senior secured stretch and unitranche facilities, second lien loans, mezzanine and mezzanine-related loans, and equity investments, as well as select other subordinated instruments either directly or through acquisitions in the secondary market.

The level of our investment activity depends on many factors, including the amount of debt and equity capital available to prospective portfolio companies, the level of merger, acquisition and refinancing activity for such companies, the availability of credit to finance transactions, the general economic environment and the competitive environment for the types of investments we make, all of which have been, and may continue to be, impacted by COVID-19.


40


Revenues
We generate revenues primarily through the receipt of interest income from the investments we hold. In addition, we generate income from various loan origination and other fees and from dividends on direct equity investments. In addition, we may generate revenue in the form of commitment, origination, administration, amendment, and loan servicing fees.  Loan origination fees, original issue discount and market discount or premium are capitalized as part of the underlying cost of the investments and accreted or amortized over the life of the investment as interest income. We record contractual prepayment premiums on loans and debt securities as interest income.

Our debt investment portfolio consists of primarily floating rate loans. As of March 31, 2022, 100% of our debt investments, based on fair value, bore interest at floating rates, which may be subject to interest rate floors.  Variable-rate investments subject to a floor generally reset periodically to the applicable floor, only if the floor exceeds the index.  Trends in base interest rates, such as LIBOR, may affect our net investment income over the long term. In addition, our results may vary from period to period depending on the interest rates of new investments made during the period compared to investments that were sold or repaid during the period; these results reflect the characteristics of the particular portfolio companies that we invested in or exited during the period and not necessarily any trends in our business or macroeconomic trends.

Dividend income that we receive from our ownership of private securities is recorded pursuant to the terms of the respective investments.

Expenses
Our primary operating expenses include the payment of fees to the Advisor under the Investment Management Agreement, our allocable portion of overhead expenses under the Administration Agreement and other operating costs described below.

We are responsible for all costs and expenses incurred in connection with the operations of the Company and locating, structuring, evaluating, consummating, maintaining and disposing of investments and potential investments (whether or not the acquisition is consummated), including but not limited to legal, regulatory, accounting and other professional or third-party costs or disbursements including travel, rent or lodging, out-of-pocket expenses of the Advisor, the fees and expenses of any independent counsel engaged by the Advisor and out-of-pocket expenses related to third-party service providers (including loan servicer fees), placement agent fees and expenses, advertising expenses, litigation expenses, brokerage commissions, clearing and settlement charges and other transaction costs, custody fees, interest expenses, financing charges, initial and variation margin, broken deal expenses, compensation (which may include fees or performance-based compensation) of advisors, consultants and finders, joint venture partners, or other professionals relating to the Company’s operations and investments or potential investments (whether or not completed), which may include costs incurred to attend or sponsor networking and other similar events hosted by both for-profit and not-for-profit organizations (which may include organizations affiliated with current or prospective investors), specific expenses incurred in obtaining, developing or maintaining market data technology systems, research and other information and information service subscriptions utilized with respect to the Company’s investment program including fees to third party providers of research, portfolio risk management services (including the costs of risk management software or database packages), fees of pricing and valuation services, appraisal costs and brokerage expenses. We will also bear all commitment fees and any transfer or recording taxes, registration fees and other expenses in connection with acquisitions and dispositions of investments, and all expenses relating to the ownership and operation of investments, including taxes, interest, insurance, and other fees and expenses. Travel expenses may include first-class airfare and limited use of private or charter aircraft, as well as premium accommodations, in accordance with our Advisor’s policies related thereto.


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In addition, we will bear all costs of the administration of the Company, including but not limited to accounting expenses (including accounting systems) and expenses relating to audit, legal and regulatory expenses (including filings with U.S. and non-U.S. regulators and compliance obligations), costs associated with our reporting and compliance obligations under the 1940 Act and other applicable U.S. federal and state securities laws, fees and expenses of any administrators in connection with the administration of the Company, expenses relating to the maintenance of registered offices of the Company to the extent provided by unaffiliated service providers, temporary office space of non-employee consultants or auditors, blue sky and corporate filing fees and expenses, corporate licensing expenses, indemnification expenses, costs of holding any meetings or conferences of investors or their delegates or advisors (including meetings of the Advisor and related activities), Independent Directors’ fees and expenses, costs of any litigation or threatened litigation or costs of any investigation or legal inquiries involving Company activities (including regulatory sweeps), the cost of any liability insurance or fidelity coverage for the Company, including any directors’ and officers’ liability insurance and key-person life insurance policies, maintained with respect to liabilities arising in connection with the activities of our directors and officers conducted on behalf of the Company, costs associated with reporting and providing information to existing and prospective investors, including printing and mailing costs, wind-up and liquidation expenses, and any extraordinary expenses arising in connection with the operations of the Company.

We have agreed to repay the Advisor for initial organization and offering costs up to a maximum of $1.25 million, of which the Advisor has incurred approximately $1.1  million as of March 31, 2022.

From time to time, the Administrator or its affiliates may pay third-party providers of goods or services. We will reimburse the Administrator or such affiliates thereof for any such amounts paid on our behalf.

Leverage
Currently, we do not intend to utilize leverage. We may borrow money from time to time within the levels permitted by the 1940 Act.

Impact of COVID-19
In late 2019 and early 2020, a novel coronavirus (SARS-CoV-2) and related respiratory disease ("COVID-19") emerged in China and spread rapidly across the world, including to the U.S. This outbreak has led and for an unknown period of time will continue to lead to disruptions in local, regional, national and global markets and economies affected thereby. The extent to which the COVID-19 pandemic will adversely impact our business, financial condition, liquidity and results of operations will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of this outbreak, and any future outbreaks.

It is clear that these types of events are negatively impacting and will, for at least some time, continue to negatively impact our business and portfolio companies and in many instances the impact will be profound. For example, smaller and middle market companies in which we may invest are being significantly impacted by these events and the uncertainty caused by these events. With respect to loans to such companies, we have been, and may continue to be impacted if, among other things, (i) amendments and waivers are granted (or are required to be granted) to borrowers permitting deferral of loan payments or allowing for payment-in-kind (“PIK”) interest payments, (ii) borrowers default on their loans, are unable to refinance their loans at maturity, or go out of business permanently, and/or (iii) the value of loans we hold decreases as a result of such events and the uncertainty they cause. Such events have caused us, and may continue to cause us, to suffer losses. We will also be negatively affected if the operations and effectiveness of our Adviser or a portfolio company (or any of the key personnel or service providers of the foregoing) is compromised or if necessary or beneficial systems and processes are disrupted as a result of the interruptions to regular business operations caused by COVID-19.


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With respect to our investments, we have taken, and will continue to take, steps to actively oversee all of our individual portfolio companies. These measures include, among other things, frequent communication with our portfolio company management teams and related private equity sponsors to understand the expected financial performance impact of the COVID-19 pandemic.

The effects of the COVID-19 pandemic on economic and market conditions have increased the demands to provide capital to our existing portfolio companies. We maintain adequate cash, capital commitments and additional borrowing capacity in reserve to meet any further such draw requests.

It is impossible to determine the scope of this outbreak, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have or the full potential impact on our business, the Advisor and portfolio companies. The impact of this outbreak, or any future outbreaks, while uncertain, could materially adversely affect our and our portfolio companies’ operating results.

Portfolio and Investment Activity
As of March 31, 2022, based on fair value, our portfolio consisted of 94.77% first lien senior secured debt investments, 0.01% sponsor subordinated note investments, and 5.22% investments in affiliated funds.

As of March 31, 2022, we had investments in one hundred twenty-five portfolio companies with an aggregate fair value of $162.2 million.  As of December 31, 2021, we had investments in one hundred twenty-one portfolio companies with an aggregate fair value of $159.1 million.



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Our investment activity for the three months ended March 31, 2022 and 2021 is presented below (information presented herein is at par value unless otherwise indicated).

    Three Months Ended  Three Months Ended 
(Amounts in thousands) March 31, 2022  March 31, 2021 
Principal amount of investments committed (including add-ons):      
First lien senior secured debt investments $10,526  $19,615 
Sponsor subordinated note  -   2 
Investment in affiliated funds  238   130 
Total principal amount of investments committed $10,764  $19,747 
Principal amount of investments sold or repaid:        
First lien senior secured debt investments $(11,335) $(10,211)
Investment in affiliated funds  (8)  (2)
Total principal amount of investments sold or repaid $(11,343) $(10,213)
New debt investments(1):
        
New commitments $5,468  $18,409 
Number of new commitments in new portfolio companies(2)
  5   11 
Average new commitment amount $1,094  $1,674 
Weighted average term for new commitments (in years)  
5.4
   4.9 
Percentage of new commitments at floating rates  100.0%  100.0%
Percentage of new commitments at fixed rates  0.0%  0.0%

(1) Amounts shown exclude add-on transactions to existing portfolio companies during the period.
(2) Number of new debt investment commitments represent commitments to a particular portfolio company.

As of March 31, 2022 and December 31, 2021, our investments consisted of the following:

  

   March 31, 2022		  

   December 31, 2021		 
(Amounts in thousands) Amortized Cost  Fair Value  Amortized Cost  Fair Value 
First lien senior secured debt $153,473  $153,712  $151,054  $151,105 
Sponsor subordinated note  16   16   16   16 
Investment in affiliated funds  6,440   8,465   6,210   7,986 
Total investments $159,929  $162,193  $157,280  $159,107 



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The table below describes investments by industry composition based on fair value as of March 31, 2022 and December 31, 2021:

  March 31, 2022   December 31, 2021 
Aerospace and defense  1.3%  1.3%
Auto components  1.3%  1.4%
Chemicals  4.5%  4.6%
Commercial services and supplies  5.0%  3.7%
Construction and engineering  1.7%  1.6%
Containers and packaging  3.9%  3.9%
Distributors  0.3%  0.3%
Diversified consumer services  8.6%  8.9%
Electrical equipment  0.8%  0.8%
Electronic equipment, instruments and components  1.4%  1.4%
Food and staples retailing  2.3%  2.3%
Food products  1.0%  0.9%
Gas utilities  0.9%  0.9%
Health care equipment and supplies  2.6%  2.0%
Health care providers and services  22.6%  24.8%
Health care technology  1.2%  1.1%
Household durables  1.8%  1.8%
Internet and direct marketing retail  2.6%  2.6%
IT services  3.6%  3.8%
Leisure equipment and products  1.9%  1.9%
Leisure products  0.5%  0.5%
Life sciences tools and services  0.7%  0.7%
Machinery  2.1%  2.2%
Media  3.8%  3.7%
Metals and mining  1.6%  1.5%
Multisector holdings  5.2%  5.0%
Personal products  1.9%  1.7%
Pharmaceuticals  2.0%  2.1%
Professional services  0.5%  0.5%
Real estate management and development  1.1%  1.0%
Semiconductors and semiconductor equipment  0.4%  0.5%
Software  2.0%  2.1%
Specialty retail  2.6%  2.5%
Textiles, apparel and luxury goods  1.2%  1.2%
Trading companies and distributors  4.6%  4.3%
Water utilities  0.5%  0.5%
Total  100.0%  100.0%

As of March 31, 2022, 99.0% of investments held were based in the United States and 1.0% were based in Canada. As of December 31, 2021, 99.0% of investments held were based in the United States and 1.0% were based in Canada.


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The weighted average yields and interest rates of our funded debt investments as of March 31, 2022 and December 31, 2021 were as follows: 

  March 31, 2022  December 31, 2021 
Weighted average total yield of funded debt investments at cost  9.3%  8.2%
Weighted average total yield of funded debt investments at fair value  9.2%  8.1%
Weighted average interest rate of funded debt investments (1)
  6.9%  6.9%
Weighted average spread over reference rates of all floating rate funded debt investments  5.9%  5.9%

(1) Calculated using actual interest rates in effect as of March 31, 2022 and December 31, 2021 based on borrower elections.

The weighted average yield of our funded debt investments is not the same as a return on investment for our shareholders but, rather, relates to a portion of our investment portfolio and is calculated before the payment of all of our and our subsidiaries’ fees and expenses. The weighted average yield was computed using the effective interest rates of each investment as of each respective date, including accretion of original issue discount, but excluding investments on non-accrual status, if any. There can be no assurance that the weighted average yield will remain at its current level.

Our Advisor monitors our portfolio companies on an ongoing basis. It monitors the financial trends of each portfolio company to determine if they are meeting their respective business plans and to assess the appropriate course of action with respect to each portfolio company. Our Advisor has several methods of evaluating and monitoring the performance and fair value of our investments, which may include the following:

• assessment of success of the portfolio company in adhering to its business plan and compliance with covenants;
• periodic and regular contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements and accomplishments;
• comparisons to other companies in the portfolio company’s industry; and
• review of monthly or quarterly financial statements and financial projections for portfolio companies.

As part of the monitoring process, our Advisor employs an investment rating system to categorize our investments. In addition to various risk management and monitoring tools, our Advisor rates the credit risk of all debt investments on a scale of A to F. This system is intended primarily to reflect the underlying risk of a portfolio investment relative to our initial cost basis in respect of such portfolio investment (i.e., at the time of origination or acquisition), although it may also take into account the performance of the portfolio company’s business, the collateral coverage of the investment and other relevant factors. The rating system is as follows:

Investment Ratings
Description
A
A loan supported by exceptional financial strength, stability and liquidity;
B
As a general rule, a new transaction will be risk rated a “B” loan. Overtime, a “B” loan is supported by good financial strength, stability and liquidity;
C
A loan that is exhibiting deteriorating trends, which if not corrected could jeopardize repayment of the debt. In general, a default by the borrower of one of its financial performance covenants (leverage or coverage ratios) would warrant downgrade of a loan to a risk rating of “C”;
DA loan that has a well-defined weakness that jeopardizes the repayment of the debt or the ongoing enterprise value of the borrower;
E
A loan that has an uncured payment default; and
FAn asset that is considered uncollectible or of such little value that its continuance as a booked asset is unwarranted.

46

Our Advisor rates the investments in our portfolio at least quarterly and it is possible that the rating of a portfolio investment may be reduced or increased over time. For investments rated C through F, our Advisor enhances its level of scrutiny over the monitoring of such portfolio company.

The following table shows the composition of our debt investments on the A to F rating scale as of March 31, 2022 and December 31, 2021:

  
 
   March 31, 2022
 December 31, 2021
 
    Percentage of   Percentage of 
  Investments Total Investments Total 
Investment Rating at Fair Value Debt Investments at Fair Value Debt Investments 
(Amounts in thousands)         
A $–  
–
 $
–
  
–
 
B  145,509  94.7% 141,945  93.9%
C  8,203  5.3% 9,160  6.1%
D  –  
–
  
–
  
–
 
E

 –  
–
  
–
  
–
 
 F   –  –
 –  –
Total $153,712  100.0%$151,105  100.0%

The following table shows the amortized cost of our performing and non-accrual debt investments as of March 31, 2022 and December 31, 2021:

  

   March 31, 2022		  
December 31, 2021
 
(Amounts in thousands) Amortized Cost  Percentage  Amortized Cost  Percentage 
Performing $153,473   100.0% $151,054   100.0%
Non-accrual  -   -   -   - 
Total $153,473   100.0% $151,054   100.0%

Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected in full.  Accrued interest is generally reversed when a loan is placed on non-accrual status.  Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon the Advisor’s judgment regarding collectability.  Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in the Advisor’s judgment, are likely to remain current. Management may make exceptions to this treatment and determine to not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection.

Results of Operations
The following table represents the operating results for the three months ended March 31, 2022 and 2021:

Net increase (decrease) in net assets resulting from operations can vary from period to period as a result of various factors, including the level of new investment commitments, expenses, the recognition of realized gains and losses and changes in unrealized appreciation and depreciation on the investment portfolio.

   Three Months  Three Months 
   Ended  Ended 
(Amounts in thousands) March 31, 2022  March 31, 2021 
Total investment income $3,072  $1,676 
Less: expenses  (1,175)  (771)
Net investment income (loss)  1,897   905 
Net change in unrealized gain (loss)  417   388 
Net realized gain (loss)  33   10 
Net increase (decrease) in net assets resulting from operations $2,347  $1,303 


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Investment Income
Investment income for the three months ended March 31, 2022 and 2021were as follows:

   Three Months  Three Months 
   Ended  Ended 
(Amounts in thousands) March 31, 2022  March 31, 2021 
Interest income $2,923  $1,622 
Other income  149   54 
Total investment income $3,072  $1,676 

Total investment income increased to $3.1 million for the three months ended March 31, 2022 from $1.7 million for the same period in the prior year primarily driven by our deployment of capital and the increased balance of our investments. The size of our investment portfolio at fair value increased to $162.2 million at March 31, 2022 from $84.6 million at March 31, 2021.

Expenses
Expenses for the three months ended March 31, 2022 and 2021were as follows:

  Three Months  Three Months 
  Ended  Ended 
(Amounts in thousands) March 31, 2022  March 31, 2021 
Income incentive fees $381  $147 
Management fees  241   123 
Professional fees  119   44 
Accounting fees  104   104 
Insurance fees  90   122 
Other  86   38 
Interest  55   60 
Administrative fees  54   88 
Directors' fees  45   45 
Total net expenses $1,175  $771 

Under the terms of the Administration Agreement and Investment Management Agreement, we reimburse the Administrator and Advisor, respectively, for services performed for us. In addition, pursuant to the terms of these agreements, the Administrator and Advisor may delegate its obligations under these agreements to an affiliate or to a third party and we reimburse the Administrator and Advisor for any services performed for us by such affiliate or third party.

For the three months ended March 31, 2022, the Administrator charged approximately $0.1 million for certain costs and expenses allocable to the Company under the terms of the Administration Agreement.  For the three months ended March 31, 2021, the Administrator charged approximately $0.1 million for certain costs and expenses allocable to the Company under the terms of the Administration Agreement

Total net expenses increased to approximately $1.2 million from $0.8 million, for the three months ended March 31, 2022 and 2021, respectively, primarily due to increases in income incentive fees,  management fees, and professional fees. These increases in fees were largely driven by our deployment of capital and increased balance of our investments.


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Income Taxes, including Excise Taxes
We have elected to be treated as a RIC under Subchapter M of the Code, and we intend to operate in a manner so as to continue to qualify for the tax treatment applicable to RICs. To continue to qualify for tax treatment as a RIC, we must, among other things, distribute to our shareholders in each taxable year generally at least 90% of our investment company taxable income, as defined by the Code, and net tax-exempt income for that taxable year. To maintain our tax treatment as a RIC, we, among other things, intend to make the requisite distributions to our shareholders, which generally relieves us from corporate-level U.S. federal income taxes.

Depending on the level of taxable income earned in a tax year, we can be expected to carry forward taxable income (including net capital gains, if any) in excess of current year dividend distributions from the current tax year into the next tax year and pay a nondeductible 4% U.S. federal excise tax on such taxable income, as required. To the extent that we determine that our estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such income, we will accrue excise tax on estimated excess taxable income. For the three months ended March 31, 2022 and 2021, we did not accrue U.S. federal excise tax.

We conduct certain activities through our wholly-owned subsidiary, Twin Brook Equity XVIII Corp., a Delaware C corporation. Twin Brook Equity XVIII Corp. is treated as a corporation for United States federal income tax purposes and is subject to U.S. federal, state or local income tax. For the three months ended March 31, 2022 and 2021, we did not accrue U.S. federal tax expense related to fee income received.

Net Change in Unrealized Gains (Losses) on Investment Transactions
We fair value our portfolio investments quarterly and any changes in fair value are recorded as unrealized gains or losses.  During the three months ended March 31, 2022 and 2021, net unrealized gains (losses) on our investment transactions were as follows:

   Three Months  Three Months 
   Ended  Ended 
(Amounts in thousands) March 31, 2022  March 31, 2021 
Net change in unrealized gain (loss) on investments $437  $372 
Net change in unrealized gain (loss) on foreign currency forward contracts  (18)  16 
Net change in unrealized gain (loss) on foreign currency translation  (2)  – 
Net change in unrealized gain (loss) on investment transactions $417  $388 

For the three months ended March 31, 2022, the net unrealized gain was primarily driven by an increase in the fair value of our investments as compared to December 31, 2021. The unrealized gains were also driven by improved performance of our portfolio companies including equity investments held by Twin Brook Equity Holdings, LLC, that increased our net asset value in the affiliated fund during the three months ended March 31, 2022.

For the three months ended March 31, 2021, the net unrealized gain was primarily driven by an increase in the fair value of our investments as compared to December 31, 2020. The primary drivers of our portfolio's unrealized gains were improved market conditions and credit spreads tightening during the three months ended March 31, 2021.



49

Net Realized Gains (Losses) on Investment Transactions
The realized gains and losses on fully and partially exited portfolio companies and foreign currency transactions during the three months ended March 31, 2022 and 2021, were as follows:

   Three Months  Three Months 
   Ended  Ended 
(Amounts in thousands) March 31, 2022  March 31, 2021 
Net realized gain (loss) on investments $35  $18 
Net realized gain (loss) on foreign currency forward transactions  (2)  (8)
Net realized gain (loss) on investment transactions $33  $10 

The increase in realized gains during the three months ended March 31, 2022 as compared to the three months ended March 31, 2021 was due to increased paydown activity as the portfolio matures.

Financial Condition, Liquidity, and Capital Resources
Our liquidity and capital resources are generated primarily from the proceeds of capital drawdowns of our privately placed capital commitments, cash flows from interest, dividends and fees earned from our investments and principal repayments, and our subscription facility. The primary uses of our cash are (1) investments in portfolio companies and other investments to comply with certain portfolio diversification requirements, (2) the cost of operations (including paying our Advisor and Administrator or its affiliates), (3) debt service of any borrowings and (4) cash distributions to the holders of our stock.

We may from time to time increase the size of our existing subscription facility. Any such incurrence would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors. In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to incur borrowings, issue debt securities or issue preferred stock, if immediately after the borrowing or issuance, the ratio of total assets (less total liabilities other than indebtedness) to total indebtedness plus preferred stock, is at least 200%. There were no outstanding borrowings as of March 31, 2022 and December 31, 2021. We seek to carefully consider our unfunded commitments for the purpose of planning our ongoing financial leverage. Further, we maintain sufficient borrowing capacity within the 200% asset coverage limitation to cover any outstanding unfunded commitments we are required to fund.

Cash as of March 31, 2022, taken together with our uncalled capital commitments of $32.4 million and available debt capacity of $3.6 million, is expected to be sufficient for our investing activities and to conduct our operations.

As of March 31, 2022 we had $25.3 million in cash.  During the three months ended March 31, 2022, we used $0.6 million in cash for operating activities, primarily as a result of funding portfolio investments of $13.3 million, partially offset by sales and paydowns of portfolio investments of $10.9 million, and other operating activities of $1.8 million.  Cash used for financing activities was $1.8 million during the period, which was the result of dividend payments.

As of March 31, 2021, we had $16.6 million in cash.  During the three months ended March 31, 2021, we used $3.4 million in cash for operating activities, primarily as a result of funding portfolio investments of $14.1 million, partially offset by sales and paydowns of portfolio investments of $9.6 million, and other operating activities of $1.1 million.  Cash provided by financing activities was $9.6 million during the period, which was primarily the result of proceeds from the issuance of shares of $10.8 million, partially offset by dividend payments of $1.2 million.


50

Equity
Subscriptions and Drawdowns
As of March 31, 2022, we had 9,141,176 shares issued and outstanding with a par value of $0.001 per share.

We have entered into subscription agreements with investors providing for the private placement of our common shares. Under the terms of the subscription agreements, investors are required to fund drawdowns to purchase our common shares up to the amount of their respective Capital Commitment on an as-needed basis each time our Advisor delivers a capital call notice to such investors.

During the three months ended March 31, 2022, there were no capital call notices delivered to investors.

During the three months ended March 31, 2021, our Advisor delivered the following capital call notices to investors:

   Three Months Ended March 31, 2021     
    Number of
  Aggregate Offering
   Common Share Common Shares
  Price
 Capital Drawdown Notice Date  Issuance Date Issued
  ($ in millions)
March 16, 2021 March 30, 2021 540,000 $
10.80
Total   540,000 $
10.80

Dividends
There were no dividends declared for the three months ended March 31, 2022 and 2021.
Debt
Subscription Facility
In accordance with the 1940 Act, we can borrow amounts such that our asset coverage, as defined in the 1940 Act, is at least 200% after such borrowings, subject to certain limitations. There were no outstanding borrowings as of March 31, 2022 and December 31, 2021.

On August 14, 2019, we entered into a revolving credit facility (the “Subscription Facility”), pursuant to a Revolving Credit Agreement, as amended, with Wells Fargo Bank, National Association (the “Lender”).  The Subscription Facility enables us to request loans from the Lender up to a maximum commitment of $15 million.  The borrowings under the Subscription Facility are collateralized by the eligible unfunded capital commitments of our investors.  The total amount available under the Subscription Facility may be reduced as a result of decreases in the unfunded capital commitments of our investors as well as other provisions of the Subscription Facility agreement.

Borrowings under the Subscription Facility bear interest at either (i) LIBOR plus the applicable margin of 1.50%, if the borrowing is a LIBOR Rate Loan or (ii) the Prime Rate plus the applicable margin of 0.50%, if the borrowing is a Reference Rate Loan. As of March 31, 2022 and December 31, 2021, there were no outstanding borrowings.  In addition, we pay an unused commitment fee of 0.20% per annum on the daily unused commitments of the Lender.  The maturity date of the Subscription Facility is August 12, 2022.
The Subscription Facility agreement subjects us to certain covenants including, but not limited to, providing financial information and requirements concerning compliance with certain financial tests and investor attributes.  As of March 31, 2022, we are in compliance with such covenants.
On May 4, 2022, we terminated the Subscription Facility’s revolving credit agreement.

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Debt obligations consisted of the following as of March 31, 2022 and December 31, 2021:
  

      As of March 31, 2022
 
(Amounts in thousands) Maximum Principal Amount Committed  Principal Amount Outstanding  
Principal Amount Available(1)
  Carrying Value 
Subscription facility $15,000  $–  $3,564  $– 
Total debt $15,000  $–  $3,564  $– 
(1)  The amount available reflects any limitations related to the Subscription Facility’s borrowing base.
  

      As of December 31, 2021		 
(Amounts in thousands) Maximum Principal Amount Committed  Principal Amount Outstanding  
Principal Amount Available(1)
  Carrying Value 
Subscription facility $15,000  $–  $3,564  $– 
Total debt $15,000  $–  $3,564  $–

(1)  The amount available reflects any limitations related to the Subscription Facility’s borrowing base.

For the three months ended March 31, 2022 and 2021 the components of interest expense were as follows:
   Three Months Ended   Three Months Ended
(Amounts in thousands) March 31, 2022  March 31, 2021
Interest expense $8  $7
Amortization of deferred financing costs  47   53
Total interest expense $55  $60
Average interest rate  N/A   3.54%
Average daily borrowings  N/A  $56
Off-Balance Sheet Arrangements
Portfolio Company Commitments
Our investment portfolio may contain debt investments that are in the form of revolving lines of credit and unfunded delayed draw commitments, which require us to provide funding when requested by portfolio companies in accordance with the terms of the underlying loan agreements.  Unfunded portfolio company commitments and funded debt investments are presented on the consolidated schedule of investments at fair value.  Unrealized appreciation or depreciation, if any, is included in the consolidated statement of assets and liabilities and consolidated statement of operations.



52

As of March 31, 2022 and December 31, 2021, the Company had the following outstanding commitments to fund investments in current portfolio companies:

Portfolio Company March 31, 2022  December 31, 2021 
First lien senior secured debt(1)
 (Amounts in thousands)  (Amounts in thousands) 
50Floor, LLC $199  $199 
Abrasive Technology Intermediate, LLC  156   173 
Advanced Lighting Acquisition, LLC  324   324 
AEP Passion Intermediate Holdings, Inc.  69   91 
AFC Industries, Inc.  137   223 
Affinitiv, Inc.  248   248 
Agility Intermediate, Inc.  534   534 
Alliance Environmental Group, LLC  66   113 
ALM Media, LLC  971   971 
Altamira Material Solutions, LP  41   45 
AM Buyer, LLC  111   111 
Answer Acquisition, LLC  34   38 
Apex Dental Partners, LLC  146   215 
Aptitude Health Holdings, LLC  267   240 
Aquatic Sales Solutions, LLC  117   117 
ASC Ortho Management, LLC  398   398 
ASP Global Acquisition, LLC  485   534 
AvCarb, LLC  704   704 
Banner Buyer, LLC 
715  
838 
BBG Intermediate Holdings, Inc.  229   233 
BCI Burke Holding Corp.  195   196 
Beacon Oral Specialists Management LLC  116   36 
Behavior Frontiers, LLC  19   19 
Bio Agri Mix Holdings Inc.  90   89 
Brightview, LLC  160   358 
Canadian Orthodontic Partners Corp.  142   237 
Community Care Partners, LLC  146   169 
Copperweld Group, Inc.  493   197 
Cosmetic Solutions, LLC  344   710 
CPS HVAC Group, LLC  182   188 
Data Source Intermediate Holdings, LLC  123   123 
DealerOn Inc.  314   314 
Dermatology Medical Partners OpCo, LLC  106   134 
Diamondback Buyer, LLC  75   75 
DNS IMI Acquisition Corp  125   124 
Domino Equipment Company, LLC  79   79 
Dykstra's Auto, LLC  152   129 
Edko Acquisition, LLC  38   38 
EH Management Company, LLC  38   38 
Empire Equipment Company, LLC  282   1,254 
EMSAR Acquisition LLC  515   542 
Engelman Baking Co., LLC  163   153 
E-Phoenix Acquisition Co. Inc.  75   75 
Exclusive Concepts, LLC  248   248 


53

Portfolio CompanyMarch 31, 2022December 31, 2021
First lien senior secured debt (continued)(1)
(Amounts in thousands)(Amounts in thousands)
Formulated Buyer, LLC  $390   $390 
FreshAddress, LLC  30   30 
Geriatric Medical and Surgical Supply, LLC  300   300 
Golden Bear PT Partners, LLC  218   267 
Green Monster Acquisition, LLC  38   38 
Groundworks Operations, LLC  425   575 
Guardian Dentistry Practice Management, LLC  81   90 
Home Brands Group Holdings, Inc.  48   48 
Hydromax USA, LLC  125   182 
Icelandirect, LLC  17   23 
Industrial Dynamics Company, Ltd.  141   141 
Infolinks Media Buyco, LLC  77   77 
Innovative FlexPak, LLC  408   408 
ISSA, LLC  66   66 
Jansy Packaging, LLC  470   706 
Juniper Landscaping Holdings LLC  132   110 
Kaizen Auto Care, LLC  99   204 
Kalkomey Enterprises, LLC 
46  
77 
Lakeshirts LLC  80   80 
Leonard Group, Inc.  66   197 
Library Associates, LLC  -   84 
MacNeill Pride Group Corp.  158   52 
Mad Rose Company, LLC  119   119 
Main Street Gourmet, LLC  685   704 
Mattco Forge, Inc.  506   506 
Maxor National Pharmacy Services, LLC  84   84 
Millennia Patient Services, LLC  401   401 
Montway LLC  825   825 
Motis Brands, Inc.  8   14 
MRC Keeler Acquisition, LLC  300   300 
Nelson Name Plate Company  86   94 
Network Partners Acquisition, LLC  150   150 
Nimlok Company, LLC  320   320 
Novum Orthopedic Partners Management, LLC  331   373 
NSG Buyer, Inc.  294   294 
NutriScience Innovations, LLC  131   131 
P&R Dental Strategies, LLC  23   23 
Peak Dental Services, LLC  146   149 
Peak Investment Holdings, LLC  908   908 
Pentec Acquisition Corp.  75   75 
Performance PowerSports Group Purchaser, Inc.  12   8 
Pink Lily Holdings, LLC  38   46 
PPW Acquisition, LLC  21   30 
Reliable Medical Supply LLC  87   178 
Revival Animal Health, LLC  131   131 
RQM Buyer, Inc.  234   234 



54
Portfolio CompanyMarch 31, 2022December 31, 2021
First lien senior secured debt (continued)(1)
(Amounts in thousands)(Amounts in thousands)
RTP Acquisition, LLC  $38  $
38 
SAMGI Buyer, Inc.  138   138 
SASE Company, LLC  38   38 
SCA Buyer, LLC  373   412 
SCP Beverage Buyer, LLC  23   38 
SCP ENT and Allergy Services, LLC  879   966 
Shearer Supply, LLC  67   71 
ShiftKey, LLC  241   120 
Signature Dental Partners LLC  152   179 
Silver Falls MSO, LLC  -   94 
SimiTree Acquisition LLC  191   522 
Southeast Primary Care Partners, LLC  405   435 
Southern Orthodontic Partners Management, LLC  45   167 
Southern Sports Medicine Partners, LLC
   216    - 
Spear Education, LLC  359   888 
Spectrum Solutions, LLC  267   267 
Starwest Botanicals Acquisition, LLC 
139  
174 
Stax Holding Company, LLC  60   60 
Steel City Wash, LLC  38   38 
Storm Smart Buyer LLC  131   131 
Teel Plastics, LLC  324   324 
The Channel Company, LLC  62   62 
The Stratix Corporation  75   150 
Trademark Global, LLC  65   88 
Triad Technologies, LLC  314   314 
United Land Services Opco Parent, LLC  803   914 
USALCO, LLC  68   93 
Vanguard Packaging, LLC  303   303 
Varsity DuvaSawko Operating Corp.  474   474 
Vehicle Accessories, Inc.  34   38 
Vital Care Buyer, LLC  406   580 
Western Veterinary Partners, LLC  217   147 
Total unfunded portfolio company commitments $27,294  $30,379 

(1) Unfunded commitments denominated in currencies other than USD have been converted to USD using the exchange rate as of the applicable reporting date.

As of March 31, 2022 and December 31, 2021, approximately $203,000 and $185,000, respectively, of the Company's unfunded revolver commitments are reserved for letters of credit issued to third party beneficiaries on behalf of the Company's investments.

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We maintain sufficient borrowing capacity along with undrawn capital commitments of our investors to cover outstanding unfunded portfolio company commitments that we may be required to fund. We seek to carefully manage our unfunded portfolio company commitments for purposes of planning our ongoing financial leverage. Further, we maintain sufficient borrowing capacity within the 200% asset coverage ratio, along with undrawn capital commitments of our investors, to cover any outstanding portfolio company unfunded commitments we are required to fund.

Investor Commitments
As of March 31, 2022 and December 31, 2021, the Company had $216.0 million in total capital commitments from investors ($32.4 million undrawn).  These undrawn capital commitments will no longer remain in effect following the completion of a Qualified IPO.
Contractual Obligations
We have no contractual payment obligations under our subscription facility as there were no borrowings outstanding as of September 30, 2021.March 31, 2022.
Related Party Transactions
We have entered into a number of business relationships with affiliated or related parties, including the Investment Management Agreement, the Administration Agreement, and the Resource Sharing Agreement.
In addition to the aforementioned agreements, we intend to rely on exemptive relief that has been granted to us, our Advisor, and Angelo Gordon to permit us to co-invest with other funds managed by Angelo Gordon in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as any regulatory requirements and other pertinent factors.  See “Item 1. – Notes to Consolidated Financial Statements – Note 6. Agreements and Related Party Transactions” for further description of our related party transactions.
Critical Accounting Policies
The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic


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environment, financial markets, and any other parameters used in determining such estimates could cause actual results to differ. Our critical accounting policies, including those relating to the valuation of our investment portfolio, are described in our Annual Report on Form 10-K for the year ended December 31, 2020,2021, filed with the SEC on March 11, 2021,10, 2022, and elsewhere in our filings with the SEC. There have been no significant changes this quarter in our critical accounting policies and practices.


Good Faith Determinations of Fair Value (“Rule 2a-5”) under the 1940 Act was adopted by SEC in December 2020 and establishes requirements for determining fair value good faith for purposes of the 1940 Act. The company is evaluating the impact of adopting Rule 2a-5 on the financial statements and intends to comply with the new rule’s requirements on or before the compliance date in September 2022.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.


Uncertainty with respect to the economic effects of the COVID-19 outbreak has introduced significant volatility in the financial markets, and the effect of the volatility could materially impact our market risks, including those listed below. We are subject to financial market risks, including valuation risk and interest rate risk.


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Valuation Risk
We have invested, and plan to continue to invest, primarily in illiquid debt and equity securities of private companies. Most of our investments will not have a readily available market price, and therefore, we will value these investments at fair value as determined in good faith by our Board, based on, among other things, the input of our Advisor and independent third party valuation firm(s) engaged at the direction of the Board, and in accordance with our valuation policy. There is no single standard for determining fair value. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize amounts that are different from the amounts presented and such differences could be material.


Interest Rate Risk
Interest rate sensitivity refers to the change in earnings that may result from changes in the level of interest rates. We may fund portions of our investments with borrowings on a short term basis, and at such time, our net investment income will be affected by the difference between the rate at which we invest and the rate at which we borrow. Accordingly, we cannot assure you that a significant change in market interest rates will not have a material adverse effect on our net investment income.

As of September 30, 2021,March 31, 2022, 100% of our debt investments based on fair value in our portfolio were at floating rates.

Based on our Consolidated Statement of Assets and Liabilities as of September 30, 2021,March 31, 2022, the following table shows the annualized impact on net income of hypothetical base rate changes in interest rates on our debt investments and leverage (considering interest rate floors for floating rate instruments) assuming each floating rate investment is subject to 3-month LIBOR and there are no changes in our investment and borrowing structure:


(Amounts in millions) Interest Income  Interest Expense  Net Income 
Up 200 basis points $3.1  $-  $3.1 
Up 100 basis points $1.5  $-  $1.5 
Down 100 basis points $-  $-  $- 
Down 200 basis points $-  $-  $- 
(Amounts in millions) Interest Income  Interest Expense  Net Income 
Up 200 basis points $1.2  $-  $1.2 
Up 100 basis points $0.2  $-  $0.2 
Down 100 basis points $-  $-  $- 
Down 200 basis points $-  $-  $- 


To a limited extent, we may in the future hedge against interest rate fluctuations by using hedging instruments such as futures, options, swaps and forward contracts, and credit hedging contracts, such as credit default swaps. However, no assurance can be given that such hedging transactions will be entered into or, if they are, that they will be effective.


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Item 4. Controls and Procedures.


Evaluation of Disclosure Controls and Procedures
In accordance with Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q and determined that our disclosure controls and procedures are effective as of the end of the period covered by the Quarterly Report on Form 10-Q.


Changes in Internal Controls over Financial Reporting
There have been no changes in our internal control over financial reporting that occurred during the period ended September 30, 2021March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.






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PART II – OTHER INFORMATION


Item 1. Legal Proceedings.


We are not currently subject to any material legal proceedings, nor, to our knowledge, are any material legal proceedings threatened against us. From time to time, we may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. Our business is also subject to extensive regulation, which may result in regulatory proceedings against us. While the outcome of any such future legal or regulatory proceedings cannot be predicted with certainty, we do not expect that any such future proceedings will have a material effect upon our financial condition or results of operations.


Item 1A. Risk Factors.


In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020,2021, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K are not the only risks we face. Additional risks and uncertainties are not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. During the ninethree months ended September 30, 2021,March 31, 2022, there have been no material changes from the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2020.2021.


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


Except as previously reported by the Company on its current reports on Form 8-K, we did not sell any securities during the period covered by this Quarterly Report on Form 10-Q that were not registered under the Securities Act.


Item 3. Defaults Upon Senior Securities.


None.


Item 4. Mine Safety Disclosures.


Not applicable.


Item 5. Other Information.


None.



On November 10, 2021, the Company's Board of Directors appointed Jenny B. Neslin as the Company's General Counsel and Secretary, effective as of November 15, 2021. Ms. Neslin is a Managing Director at Angelo Gordon, and also serves as General Counsel and Secretary of AG Mortgage Investment Trust, Inc. (NYSE: MITT), positions she has held since April 2021.

To facilitate Ms. Neslin's appointment, on November 10, 2021, Christopher D. Moore resigned from his position as the Company's Interim General Counsel and Secretary, effective as of November 15, 2021. This resignation was not the result of any dispute or disagreement between Mr. Moore and the Company. Mr. Moore will continue to serve as the General Counsel and Secretary of Angelo Gordon.


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Item 6. Exhibits.


Exhibit No. Description






* Filed herewith

 
5659


SIGNATURES

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




   AG TWIN BROOK BDC, INC. 
   
November 12, 2021May 13, 2022


By:

/s/ Trevor Clark




 Trevor Clark




 Chief Executive Officer
   (Principal Executive Officer)




November12, 2021May 13, 2022

By:

/s/ Terrence Walters





 Terrence Walters




 
Chief Financial Officer and Treasurer
   
(Principal Financial Officer and Principal Accounting Officer)














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