UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form10-Q

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

For the Quarterly Period Ended ~~May~~August 31, 2019

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

Commission FileNo. ~~001-33376~~814-00732

SARATOGA INVESTMENT CORP.

(Exact name of Registrant as specified in its charter)

Maryland

20-8700615

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

535 Madison Avenue

New York, New York 10022

(Address of principal executive offices)

(212)906-7800

(Registrant’s telephone number, including area code)

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


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	SAR	The New York Stock Exchange
6.75% Notes due 2023	SAB	The New York Stock Exchange
6.25% Notes due 2025	SAF	The New York Stock Exchange

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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of RegulationS-T 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, anon-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 Rule12b-2 of the Exchange Act. (Check one):

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 Rule12b-2 of the Act). Yes ☐ No ☒

The number of outstanding common shares of the registrant as of ~~July 9,~~October 8, 2019 was ~~8,018,188.~~9,745,680.

TABLE OF CONTENTS

~~PART I. FINANCIAL INFORMATION~~


			Page

PART I.	FINANCIAL INFORMATION	3

Item 1.	Consolidated Financial Statements	3

	Consolidated Statements of Assets and Liabilities as of ~~May~~August 31, 2019 (unaudited) and February 28, 2019	3

	Consolidated Statements of Operations for the three and six months ended ~~May~~August 31, 2019 (unaudited) and ~~May~~August 31, 2018 (unaudited)	4

	Consolidated Schedules of Investments as of ~~May~~August 31, 2019 (unaudited) and February 28, 2019	5

	Consolidated Statements of Changes in Net Assets for the ~~three~~six months ended ~~May~~August 31, 2019 (unaudited) and ~~May~~August 31, 2018 (unaudited)	187

	Consolidated Statements of Cash Flows for the ~~three~~six months ended ~~May~~August 31, 2019 (unaudited) and ~~May~~August 31, 2018 (unaudited)	198

	Notes to Consolidated Financial Statements as of ~~May~~August 31, 2019 (unaudited)	209

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	7639

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	~~107~~67

Item 4.	Controls and Procedures	~~109~~68

PART II.	OTHER INFORMATION	~~110~~69

Item 1.	Legal Proceedings	~~110~~69

Item 1A.	Risk Factors	~~110~~69

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	~~110~~69

Item 3.	Defaults Upon Senior Securities	~~110~~69

Item 4.	Mine Safety Disclosures	~~110~~69

Item 5.	Other Information	~~110~~69

Item 6.	Exhibits	~~111~~70

Signatures		~~114~~72

PART I. FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

Saratoga Investment Corp.

Consolidated Statements of Assets and Liabilities


	May 31, 2019			February 28, 2019			August 31, 2019			February 28, 2019
	(unaudited)						(unaudited)
ASSETS
Investments at fair value
Non-control/Non-affiliate investments (amortized cost of $308,061,752 and $307,136,188, respectively)	$	309,830,182		$	306,511,427
Affiliate investments (amortized cost of $18,557,809 and $18,514,716, respectively)		11,676,118			11,463,081
Control investments (amortized cost of $78,739,023 and $76,265,189, respectively)		87,945,041			84,045,212
Non-control/Non-affiliate investments (amortized cost of $376,936,296 and $307,136,188, respectively)							$	379,070,267		$	306,511,427
Affiliate investments (amortized cost of $23,901,306 and $18,514,716, respectively)								17,750,919			11,463,081
Control investments (amortized cost of $80,491,992 and $76,265,189, respectively)								90,059,037			84,045,212

Total investments at fair value (amortized cost of $405,358,584 and $401,916,093, respectively)		409,451,341			402,019,720
Total investments at fair value (amortized cost of $481,329,594 and $401,916,093, respectively)								486,880,223			402,019,720
Cash and cash equivalents		37,183,604			30,799,068			2,846,767			30,799,068
Cash and cash equivalents, reserve accounts		23,812,643			31,295,326			21,271,658			31,295,326
Interest receivable (net of reserve of $873,414 and $647,210, respectively)		3,815,502			3,746,604
Interest receivable (net of reserve of $1,098,807 and $647,210, respectively)								4,896,769			3,746,604
Due from affiliate (See Note 6)		1,243,197			1,673,747			—			1,673,747
Management and incentive fee receivable		279,828			542,094			279,960			542,094
Other assets		550,093			595,543			665,227			595,543

Total assets	$	476,336,208		$	470,672,102		$	516,840,604		$	470,672,102

LIABILITIES
Revolving credit facility	$	—		$	—		$	—		$	—
Deferred debt financing costs, revolving credit facility		(581,922	)		(605,189	)		(558,655	)		(605,189	)
SBA debentures payable		150,000,000			150,000,000			150,000,000			150,000,000
Deferred debt financing costs, SBA debentures payable		(2,274,866	)		(2,396,931	)		(2,152,801	)		(2,396,931	)
2023 Notes payable		74,450,500			74,450,500			74,450,500			74,450,500
Deferred debt financing costs, 2023 notes payable		(1,819,617	)		(1,919,620	)		(1,719,614	)		(1,919,620	)
2025 Notes payable		60,000,000			60,000,000			60,000,000			60,000,000
Deferred debt financing costs, 2025 notes payable		(2,320,888	)		(2,377,551	)		(2,232,061	)		(2,377,551	)
Base management and incentive fees payable		7,522,070			6,684,785			8,633,468			6,684,785
Deferred tax liability		762,783			739,716			1,001,121			739,716
Accounts payable and accrued expenses		1,430,701			1,615,443			1,503,867			1,615,443
Interest and debt fees payable		1,978,494			3,224,671			3,200,510			3,224,671
Directors fees payable		63,500			62,000			75,000			62,000
Due to manager		341,752			319,091			302,702			319,091

Total liabilities	$	289,552,507		$	289,796,915		$	292,504,037		$	289,796,915

Commitments and contingencies (See Note 8)

NET ASSETS
Common stock, par value $.001, 100,000,000 common shares authorized, 7,764,844 and 7,657,156 common shares issued and outstanding, respectively	$	7,765		$	7,657
Common stock, par value $.001, 100,000,000 common shares authorized, 9,168,056 and 7,657,156 common shares issued and outstanding, respectively							$	9,168		$	7,657
Capital in excess of par value		205,988,350			203,552,800			240,296,267			203,552,800
Total distributable earnings (loss)		(19,212,414	)		(22,685,270	)		(15,968,868	)		(22,685,270	)

Total net assets		186,783,701			180,875,187			224,336,567			180,875,187

Total liabilities and net assets	$	476,336,208		$	470,672,102		$	516,840,604		$	470,672,102

NET ASSET VALUE PER SHARE	$	24.06		$	23.62		$	24.47		$	23.62

See accompanying notes to consolidated financial statements.

Saratoga Investment Corp.

Consolidated Statements of Operations

(unaudited)


	For the three months ended						For the three months ended						For the six months ended
	May 31, 2019			May 31, 2018			August 31, 2019			August 31, 2018			August 31, 2019			August 31, 2018
INVESTMENT INCOME
Interest from investments
Interest income:
Non-control/Non-affiliate investments	$	8,527,740		$	7,405,909		$	8,585,609		$	8,046,730		$	17,113,349		$	15,452,639
Affiliate investments		249,325			239,350			267,533			241,607			516,858			480,957
Control investments		1,648,146			1,146,665			1,678,326			1,251,573			3,326,472			2,398,238
Payment-in-kind interest income:
Non-control/Non-affiliate investments		151,897			216,010			179,847			145,012			331,744			361,022
Affiliate investments		40,150			34,147			41,265			35,482			81,415			69,629
Control investments		985,869			564,857			989,367			594,367			1,975,236			1,159,224

Total interest from investments		11,603,127			9,606,938			11,741,947			10,314,771			23,345,074			19,921,709
Interest from cash and cash equivalents		51,359			16,293			145,793			11,455			197,152			27,748
Management fee income		629,516			385,194			629,745			363,962			1,259,261			749,156
Incentive fee income		—			199,183			—			147,061			—			346,244
Other income		467,182			280,410			1,370,728			565,525			1,837,910			845,935

Total investment income		12,751,184			10,488,018			13,888,213			11,402,774			26,639,397			21,890,792

OPERATING EXPENSES
Interest and debt financing expenses		3,864,576			2,722,792			3,866,722			2,866,414			7,731,298			5,589,206
Base management fees		1,812,169			1,532,468			1,997,240			1,645,653			3,809,409			3,178,121
Incentive management fees		2,113,169			1,072,612			2,085,486			807,521			4,198,655			1,880,133
Professional fees		395,126			542,797			384,874			468,253			780,000			1,011,050
Administrator expenses		500,000			437,500			518,750			458,333			1,018,750			895,833
Insurance		64,619			63,859			64,619			63,860			129,238			127,719
Directors fees and expenses		60,000			95,500			97,500			75,000			157,500			170,500
General & administrative		258,601			347,850			382,873			206,295			641,474			554,145
Income tax expense (benefit)		2,136			(267,310	)
Excise tax expense (credit)		—			(270	)
Income tax benefit								(465,925	)		(341,232	)		(463,789	)		(608,542	)
Excise tax credit								—			—			—			(270	)
Other expense		—			12,572			—			8,449			—			21,021

Total operating expenses		9,070,396			6,560,370			8,932,139			6,258,546			18,002,535			12,818,916

NET INVESTMENT INCOME		3,680,788			3,927,648			4,956,074			5,144,228			8,636,862			9,071,876

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) from investments:
Net realized gain from investments:
Non-control/Non-affiliate investments		—			212,008			1,870,089			163			1,870,089			212,171

Net realized gain (loss) from investments		—			212,008
Net realized gain from investments								1,870,089			163			1,870,089			212,171
Net change in unrealized appreciation (depreciation) on investments:
Non-control/Non-affiliate investments		2,393,191			303,705			365,541			(1,086,162	)		2,758,732			(782,457	)
Affiliate investments		169,944			(475,562	)		731,304			(855,742	)		901,248			(1,331,304	)
Control investments		1,425,995			815,062			361,027			(212,617	)		1,787,022			602,445

Net change in unrealized appreciation (depreciation) on investments		3,989,130			643,205			1,457,872			(2,154,521	)		5,447,002			(1,511,316	)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments		(20,930	)		(940,546	)		(704,263	)		152,546			(725,193	)		(788,000	)

Net realized and unrealized gain (loss) on investments		3,968,200			(85,333	)		2,623,698			(2,001,812	)		6,591,898			(2,087,145	)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	7,648,988		$	3,842,315		$	7,579,772		$	3,142,416		$	15,228,760		$	6,984,731

WEIGHTED AVERAGE—BASIC AND DILUTED EARNINGS PER COMMON SHARE	$	0.99		$	0.61
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING—BASIC AND DILUTED		7,746,187			6,275,494
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE							$	0.91		$	0.45		$	1.89		$	1.06
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED								8,333,570			6,915,966			8,041,365			6,597,324

See accompanying notes to consolidated financial statements.

Saratoga Investment Corp.

Consolidated Schedule of Investments

~~May~~August 31, 2019

(unaudited)

Company

Industry

Investment Interest Rate/
Maturity
Original
Acquisition
Date Principal/
Number of
Shares Cost Fair Value (c) % of
Net Assets
Non-control/Non-affiliate investments—165.9% (b)

Apex Holdings Software Technologies, LLC
Business Services First Lien Term Loan
(3M USD LIBOR+8.00%), 10.50% Cash, 9/21/2021 9/21/2016 $ 18,000,000 $ 17,932,070 $ 18,000,000 9.7 %
Apex Holdings Software Technologies, LLC
Business Services Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 10.50% Cash, 9/21/2021 10/1/2018 $ 1,500,000 1,488,728 1,500,000 0.8 %
Avionte Holdings, LLC (h)
Business Services Class A Units 1/8/2014 100,000 100,000 707,472 0.4 %
CLEO Communications Holding, LLC
Business Services First Lien Term Loan
(3M USD LIBOR+8.00%), 10.50% Cash/2.00% PIK, 3/31/2022 3/31/2017 $ 13,583,511 13,517,395 13,583,512 7.3 %
CLEO Communications Holding, LLC
Business Services Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 10.50% Cash/2.00% PIK, 3/31/2022 3/31/2017 $ 12,204,179 12,105,751 12,204,179 6.5 %
Destiny Solutions Inc. (a)
Business Services First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 5/16/2023 5/16/2018 $ 8,500,000 8,429,988 8,513,600 4.6 %
Destiny Solutions Inc. (a), (j)
Business Services Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 5/16/2023 5/16/2018 $ — — — 0.0 %
Destiny Solutions Inc. (a), (h), (i)
Business Services Limited Partner Interests 5/16/2018 999,000 999,000 1,083,543 0.6 %
Emily Street Enterprises, L.L.C.
Business Services Senior Secured Note
(3M USD LIBOR+8.50%), 11.00% Cash, 1/23/2020 12/28/2012 $ 3,300,000 3,299,665 3,307,657 1.8 %
Emily Street Enterprises, L.L.C. (h)
Business Services Warrant Membership Interests
Expires 12/28/2022 12/28/2012 49,318 400,000 414,271 0.2 %
Erwin, Inc. (d)
Business Services Second Lien Term Loan
(3M USD LIBOR+11.50%), 14.00% Cash/1.00% PIK, 8/28/2021 2/29/2016 $ 15,928,264 15,845,224 15,928,264 8.5 %

~~See accompanying notes to consolidated financial statements.~~

Company

Industry

Investment Interest Rate/
Maturity
Original
Acquisition
Date Principal/
Number of
Shares Cost Fair Value (c) % of
Net Assets
Fancy Chap, Inc.
Business Services First Lien Term Loan
(3M USD LIBOR+7.50%), 10.00% Cash, 4/8/2024 4/8/2019 $ 6,000,000 5,940,434 5,991,000 3.2 %
Fancy Chap, Inc. (j)
Business Services Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 10.00% Cash, 4/8/2024 4/8/2019 $ — — — 0.0 %
Fancy Chap, Inc. (h)
Business Services Series C Preferred Stock 4/8/2019 38,398 925,123 2,076,658 1.1 %
FMG Suite Holdings, LLC (d)
Business Services Second Lien Term Loan
(1M USD LIBOR+8.00%), 10.43% Cash, 11/16/2023 5/16/2018 $ 23,000,000 22,849,679 22,958,600 12.3 %
GDS Holdings US, Inc. (d)
Business Services First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 8/23/2023 8/23/2018 $ 7,500,000 7,435,464 7,492,500 4.0 %
GDS Holdings US, Inc.
Business Services Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 8/23/2023 3/29/2019 $ 1,000,000 990,143 999,000 0.5 %
GDS Software Holdings, LLC (h)
Business Services Common Stock Class A Units 8/23/2018 250,000 250,000 299,892 0.2 %
Identity Automation Systems (h)
Business Services Common Stock Class A Units 8/25/2014 232,616 232,616 640,811 0.3 %
Identity Automation Systems (d)
Business Services First Lien Term Loan
(3M USD LIBOR+9.24%), 11.74% Cash, 3/31/2021 8/25/2014 $ 15,500,000 15,437,640 15,500,000 8.3 %
inMotionNow, Inc.
Business Services First Lien Term Loan
(3M USD LIBOR+7.25), 9.75% Cash, 5/15/2024 5/15/2019 $ 12,200,000 12,078,703 12,078,000 6.5 %
inMotionNow, Inc. (j)
Business Services Delayed Draw Term Loan
(3M USD LIBOR+7.25) 9.75% Cash, 5/15/2024 5/15/2019 $ — — — 0.0 %
Knowland Group, LLC
Business Services Second Lien Term Loan
(3M USD LIBOR+8.00%), 10.50% Cash, 5/9/2024 11/9/2018 $ 15,000,000 15,000,000 14,953,500 8.0 %
National Waste Partners (d)
Business Services Second Lien Term Loan
10.00% Cash, 2/13/2022 2/13/2017 $ 9,000,000 8,946,185 8,853,300 4.7 %
Omatic Software, LLC
Business Services First Lien Term Loan
(3M USD LIBOR+8.00%), 10.50% Cash, 5/29/2023 5/29/2018 $ 5,500,000 5,453,319 5,527,500 3.0 %

~~See accompanying notes to consolidated financial statements.~~

Company

Industry

Investment Interest Rate/
Maturity
Original
Acquisition
Date Principal/
Number of
Shares Cost Fair Value (c) % of
Net Assets
Omatic Software, LLC (j)
Business Services Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 10.50% Cash, 5/29/2023 5/29/2018 $ —   —   —   0.0 %
Passageways, Inc.
Business Services First Lien Term Loan
(3M USD LIBOR+7.75%), 10.25% Cash, 7/5/2023 7/5/2018 $ 5,000,000 4,956,214 5,059,500 2.7 %
Passageways, Inc. (h)
Business Services Series A Preferred Stock 7/5/2018 2,027,205 1,000,000 1,395,128 0.7 %
Vector Controls Holding Co.,
LLC (d)
Business Services First Lien Term Loan
11.50% (9.75% Cash/1.75% PIK), 3/6/2022 3/6/2013 $ 9,098,356 9,097,625 9,166,594 4.9 %
Vector Controls Holding Co.,
LLC (h)
Business Services Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015 343 —   2,076,854 1.1 %

Total Business Services 184,710,966 190,311,335 101.9 %

Targus Holdings, Inc. (h)
Consumer Products Common Stock 12/31/2009 210,456 1,713,605 501,112 0.3 %

Total Consumer Products 1,713,605 501,112 0.3 %

My Alarm Center, LLC (k)
Consumer Services Preferred Equity Class A Units
8.00% PIK 7/14/2017 2,227 2,357,879 374,662 0.2 %
My Alarm Center, LLC (h)
Consumer Services Preferred Equity Class B Units 7/14/2017 1,797 1,796,880 —   0.0 %
My Alarm Center, LLC (h)
Consumer Services Preferred Equity Class Z Units 9/12/2018 676 655,987 1,997,158 1.0 %
My Alarm Center, LLC (h)
Consumer Services Common Stock 7/14/2017 96,224 —   —   0.0 %

Total Consumer Services 4,810,746 2,371,820 1.2 %

C2 Educational Systems (d)
Education First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 5/31/2020 5/31/2017 $ 16,000,000 15,943,708 15,920,139 8.5 %
Kev Software Inc. (a)
Education First Lien Term Loan
(1M USD LIBOR+8.63%), 11.06% Cash, 9/13/2023 9/13/2018 $ 21,393,178 21,226,465 21,388,899 11.5 %
M/C Acquisition Corp., L.L.C. (h)
Education Class A Common Stock 6/22/2009 544,761 30,241 —   0.0 %
M/C Acquisition Corp., L.L.C. (k)
Education First Lien Term Loan
1.00% Cash, 3/31/2020 8/10/2004 $ 2,315,090 1,189,177 6,260 0.0 %
Texas Teachers of Tomorrow,
LLC (h), (i)
Education Common Stock 12/2/2015 750,000 750,000 801,908 0.4 %

~~See accompanying notes to consolidated financial statements.~~

Company

Industry

Investment Interest Rate/
Maturity
Original
Acquisition
Date Principal/
Number of
Shares Cost Fair Value (c) % of
Net Assets
Texas Teachers of Tomorrow, LLC
Education Second Lien Term Loan
(3M USD LIBOR+9.75%), 12.25% Cash, 6/2/2021 12/2/2015 $ 10,000,000 9,956,443 9,953,204 5.3 %

Total Education 49,096,034 48,070,410 25.7 %

TMAC Acquisition Co., LLC (k)
Food and Beverage Unsecured Term Loan
8.00% PIK, 9/01/2023 3/1/2018 $ 2,216,427 2,216,427 2,057,888 1.1 %

Total Food and Beverage 2,216,427 2,057,888 1.1 %

Axiom Parent Holdings, LLC (h)
Healthcare Services Common Stock Class A Units 6/19/2018 400,000 400,000 424,155 0.2 %
Axiom Purchaser, Inc. (d)
Healthcare Services First Lien Term Loan
(3M USD LIBOR+6.00%), 8.50% Cash, 6/19/2023 6/19/2018 $ 10,000,000 9,926,809 9,999,000 5.4 %
Axiom Purchaser, Inc. (j)
Healthcare Services Delayed Draw Term Loan
(3M USD LIBOR+6.00%), 8.50% Cash, 6/19/2023 6/19/2018 $ —   —   —   0.0 %
Censis Technologies, Inc.
Healthcare Services First Lien Term Loan B
(1M USD LIBOR+8.30%), 10.73% Cash, 9/27/2023 7/25/2014 $ 19,900,000 19,873,291 19,963,680 10.7 %
Censis Technologies, Inc. (h), (i)
Healthcare Services Limited Partner Interests 7/25/2014 999 999,000 4,018,452 2.1 %
ComForCare Health Care
Healthcare Services First Lien Term Loan
(3M USD LIBOR+7.50%), 10.00% Cash, 1/31/2022 1/31/2017 $ 15,000,000 14,905,794 15,063,000 8.1 %
HemaTerra Holding Company, LLC
Healthcare Services First Lien Term Loan
(3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024 4/15/2019 $ 6,000,000 5,941,146 5,940,000 3.2 %
HemaTerra Holding Company,
LLC (j)
Healthcare Services Delayed Draw Term Loan
(3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024 4/15/2019 $ —   —   —   0.0 %
TRC HemaTerra, LLC (h)
Healthcare Services Class D Membership Interests 4/15/2019 1,000,000 1,000,000 1,000,000 0.5 %
Ohio Medical, LLC (h)
Healthcare Services Common Stock 1/15/2016 5,000 500,000 441,950 0.2 %
Ohio Medical, LLC
Healthcare Services Senior Subordinated Note
12.00% Cash, 7/15/2021 1/15/2016 $ 7,300,000 7,266,535 7,262,040 4.0 %
Roscoe Medical, Inc. (h)
Healthcare Services Common Stock 3/26/2014 5,081 508,077 —   0.0 %
Roscoe Medical, Inc. (k)
Healthcare Services Second Lien Term Loan
11.25% Cash, 3/28/2021 3/26/2014 $ 4,200,000 4,193,322 2,405,340 1.3 %

Total Healthcare Services 65,513,974 66,517,617 35.7 %

~~See accompanying notes to consolidated financial statements.~~

Company

Industry

Investment Interest Rate/
Maturity
Original
Acquisition
Date Principal/
Number of
Shares Cost Fair Value (c) % of
Net Assets
Sub TotalNon-control/Non-affiliate investments
308,061,752 309,830,182 165.9 %

Affiliate investments—6.3% (b)

GreyHeller LLC (f)
Business Services First Lien Term Loan
(3M USD LIBOR+11.00%), 13.50% Cash, 11/16/2021 11/17/2016 $ 7,000,000 6,960,362 7,140,000 3.8 %
GreyHeller LLC (f), (h)
Business Services Series A Preferred Units 11/17/2016 850,000 850,000 1,629,899 0.9 %

Total Business Services 7,810,362 8,769,899 4.7 %

Elyria Foundry Company, L.L.C. (f), (h)
Metals Common Stock 7/30/2010 60,000 9,685,028 1,843,800 1.0 %
Elyria Foundry Company, L.L.C. (d), (f)
Metals Second Lien Term Loan
15.00% PIK, 8/10/2022 7/30/2010 $ 1,062,419 1,062,419 1,062,419 0.6 %
Total Metals 10,747,447 2,906,219 1.6 %

Sub Total Affiliate investments
18,557,809 11,676,118 6.3 %

Control investments—47.0% (b)

Easy Ice, LLC (g)
Business Services Preferred Equity
10.00% PIK 2/3/2017 5,080,000 9,925,702 13,510,126 7.2 %
Easy Ice, LLC (d), (g)
Business Services Second Lien Term Loan
7.03% Cash/5.97% PIK, 2/28/2023 3/29/2013 $ 21,867,482 21,820,919 21,976,819 11.8 %
Easy Ice Masters, LLC (d), (g)
Business Services Second Lien Term Loan
7.03% Cash/5.97% PIK, 2/28/2023 10/31/2018 $ 3,931,585 3,895,045 3,951,243 2.1 %
Netreo Holdings, LLC (g)
Business Services First Lien Term Loan
(3M USD LIBOR +6.25%), 9.00% Cash/2.00% PIK,
7/3/2023 7/3/2018 $ 5,092,999 5,048,142 5,135,271 2.7 %
Netreo Holdings, LLC (g), (h)
Business Services Common Stock Class A Unit 7/3/2018 3,150,000 3,150,000 5,406,229 2.9 %

Total Business Services 43,839,808 49,979,688 26.7 %

Saratoga Investment Corp. CLO2013-1, Ltd. (a), (e), (g)
Structured Finance Securities Other/Structured Finance Securities
19.50%, 1/20/2030 1/22/2008 $ 69,500,000 24,899,215 28,024,105 15.0 %
Saratoga Investment Corp. CLO2013-1, Ltd.Class F-R-2
Note (a), (g)
Structured Finance Securities Other/Structured Finance Securities
(3M USD LIBOR+8.75%), 11.25%, 1/20/2030 12/14/2018 $ 2,500,000 2,500,000 2,485,183 1.3 %
Saratoga Investment Corp. CLO2013-1, Ltd.Class G-R-2
Note (a), (g)
Structured Finance Securities Other/Structured Finance Securities
(3M USD LIBOR+10.00%), 12.50%, 1/20/2030 12/14/2018 $ 7,500,000 7,500,000 7,456,065 4.0 %

~~See accompanying notes to consolidated financial statements.~~


Company		Industry	Investment Interest Rate/ Maturity	Original Acquisition Date	Principal/ Number of Shares		Cost		Fair Value (c)		% of Net Assets				Industry	Investment Interest Rate/ Maturity	Original Acquisition Date	Principal/ Number of Shares		Cost		Fair Value (c)		% of Net Assets
Non-control/Non-affiliate investments—169.0% (b)
Apex Holdings Software Technologies, LLC															Business Services	First Lien Term Loan (3M USD LIBOR+8.00%), 10.14% Cash, 9/21/2021	9/21/2016	$	18,000,000	$	17,936,901	$	17,627,400		7.9	%
Apex Holdings Software Technologies, LLC															Business Services	Delayed Draw Term Loan (3M USD LIBOR+8.00%), 10.14% Cash, 9/21/2021	10/1/2018	$	1,500,000		1,489,854		1,468,950		0.7	%
Avionte Holdings, LLC (h)															Business Services	Class A Units	1/8/2014		100,000		100,000		763,188		0.3	%
CLEO Communications Holding, LLC															Business Services	First Lien Term Loan (3M USD LIBOR+8.00%), 10.14% Cash/2.00% PIK, 3/31/2022	3/31/2017	$	13,653,056		13,623,457		13,653,056		6.1	%
CLEO Communications Holding, LLC															Business Services	Delayed Draw Term Loan (3M USD LIBOR+8.00%), 10.14% Cash/2.00% PIK, 3/31/2022	3/31/2017	$	15,269,829		15,167,921		15,269,829		6.8	%
CoConstruct, LLC (d)															Business Services	First Lien Term Loan (3M USD LIBOR+7.50%), 10.00% Cash, 7/5/2024	7/5/2019	$	4,200,000		4,158,478		4,158,000		1.9	%
CoConstruct, LLC (j)															Business Services	Delayed Draw Term Loan (3M USD LIBOR+7.50%), 10.00% Cash, 7/5/2024	7/5/2019	$	—		—		—		0.0	%
Destiny Solutions Inc. (a)															Business Services	First Lien Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 5/16/2023	5/16/2018	$	8,500,000		8,432,088		8,617,626		3.8	%
Destiny Solutions Inc. (a), (j)															Business Services	Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 5/16/2023	5/16/2018	$	—		—		—		0.0	%
Destiny Solutions Inc. (a), (h), (i)															Business Services	Limited Partner Interests	5/16/2018		999,000		999,000		1,105,065		0.5	%
Emily Street Enterprises, L.L.C.															Business Services	Senior Secured Note (3M USD LIBOR+8.50%), 10.64% Cash, 1/23/2020	12/28/2012	$	3,300,000		3,299,960		3,305,280		1.5	%
Emily Street Enterprises, L.L.C. (h)															Business Services	Warrant Membership Interests Expires 12/28/2022	12/28/2012		49,318		400,000		415,750		0.2	%
Erwin, Inc. (d)															Business Services	Second Lien Term Loan (3M USD LIBOR+11.50%), 13.64% Cash/1.00% PIK, 8/28/2021	2/29/2016	$	15,968,527		15,893,546		15,968,527		7.1	%
FMG Suite Holdings, LLC (d)															Business Services	Second Lien Term Loan (1M USD LIBOR+8.00%), 10.09% Cash, 11/16/2023	5/16/2018	$	23,000,000		22,853,318		23,000,000		10.3	%
GDS Holdings US, Inc. (d)															Business Services	First Lien Term Loan (3M USD LIBOR+7.00%), 9.14% Cash, 8/23/2023	8/23/2018	$	7,500,000		7,438,092		7,503,814		3.3	%
GDS Holdings US, Inc. (d), (j)															Business Services	Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.14% Cash, 8/23/2023	8/23/2018	$	1,000,000		990,243		1,000,509		0.4	%
GDS Software Holdings, LLC (h)															Business Services	Common Stock Class A Units	8/23/2018		250,000		250,000		336,139		0.1	%
Identity Automation Systems (h)															Business Services	Common Stock Class A Units	8/25/2014		232,616		232,616		910,960		0.4	%
Identity Automation Systems (d)															Business Services	First Lien Term Loan (3M USD LIBOR+9.24%), 11.38% Cash, 3/31/2021	8/25/2014	$	15,500,000		15,448,918		15,507,750		6.9	%
inMotionNow, Inc.															Business Services	First Lien Term Loan (3M USD LIBOR+7.25), 9.75% Cash, 5/15/2024	5/15/2019	$	12,200,000		12,082,978		12,078,000		5.4	%
inMotionNow, Inc. (j)															Business Services	Delayed Draw Term Loan (3M USD LIBOR+7.25) 9.75% Cash, 5/15/2024	5/15/2019	$	—		—		—		0.0	%
Knowland Group, LLC															Business Services	Second Lien Term Loan (3M USD LIBOR+8.00%), 10.14% Cash, 5/9/2024	11/9/2018	$	15,000,000		15,000,000		14,999,123		6.7	%
National Waste Partners (d)															Business Services	Second Lien Term Loan 10.00% Cash, 2/13/2022	2/13/2017	$	9,000,000		8,950,623		8,905,500		4.0	%
Omatic Software, LLC															Business Services	First Lien Term Loan (3M USD LIBOR+8.00%), 10.14% Cash, 5/29/2023	5/29/2018	$	5,500,000		5,455,371		5,534,100		2.5	%
Omatic Software, LLC (j)															Business Services	Delayed Draw Term Loan (3M USD LIBOR+8.00%), 10.14% Cash, 5/29/2023	5/29/2018	$	—		—		—		0.0	%
Passageways, Inc.															Business Services	First Lien Term Loan (3M USD LIBOR+7.75%), 9.89% Cash, 7/5/2023	7/5/2018	$	5,000,000		4,956,824		5,064,317		2.2	%
Passageways, Inc. (h)															Business Services	Series A Preferred Stock	7/5/2018		2,027,205		1,000,000		1,527,593		0.7	%
Vector Controls Holding Co., LLC (d)															Business Services	First Lien Term Loan 11.50% (9.75% Cash/1.75% PIK), 3/6/2022	3/6/2013	$	8,450,856		8,450,177		8,579,309		3.8	%
Vector Controls Holding Co., LLC (h)															Business Services	Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027	5/31/2015		343		—		2,507,210		1.1	%

																Total Business Services					184,610,365		189,806,995		84.6	%

Targus Holdings, Inc. (h)															Consumer Products	Common Stock	12/31/2009		210,456		1,635,969		441,115		0.2	%

																Total Consumer Products					1,635,969		441,115		0.2	%

My Alarm Center, LLC (k)															Consumer Services	Preferred Equity Class A Units 8.00% PIK	7/14/2017		2,227		2,357,879		3,081		0.0	%
My Alarm Center, LLC (h)															Consumer Services	Preferred Equity Class B Units	7/14/2017		1,797		1,796,880		—		0.0	%
My Alarm Center, LLC (h)															Consumer Services	Preferred Equity Class Z Units	9/12/2018		676		655,987		1,997,158		0.9	%
My Alarm Center, LLC (h)															Consumer Services	Common Stock	7/14/2017		96,224		—		—		0.0	%

																Total Consumer Services					4,810,746		2,000,239		0.9	%

C2 Educational Systems (d)															Education	First Lien Term Loan (3M USD LIBOR+7.00%), 9.14% Cash, 5/31/2020	5/31/2017	$	16,000,000		15,956,091		15,953,600		7.1	%
EMS LINQ, Inc. (d)															Education	First Lien Term Loan (1M USD LIBOR+8.50%), 10.59% Cash, 8/9/2024	8/9/2019	$	15,000,000		14,845,166		14,845,500		6.6	%
Kev Software Inc. (a)															Education	First Lien Term Loan (1M USD LIBOR+8.63%), 10.72% Cash, 9/13/2023	9/13/2018	$	21,339,426		21,179,711		21,392,774		9.6	%
M/C Acquisition Corp., L.L.C. (h)															Education	Class A Common Stock	6/22/2009		544,761		30,241		—		0.0	%
M/C Acquisition Corp., L.L.C. (k)															Education	First Lien Term Loan 1.00% Cash, 3/31/2020	8/10/2004	$	2,315,090		1,189,177		6,260		0.0	%
Texas Teachers of Tomorrow, LLC (h), (i)															Education	Common Stock	12/2/2015		750,000		750,000		755,606		0.3	%
Texas Teachers of Tomorrow, LLC (d)															Education	First Lien Term Loan (3M USD LIBOR+7.25%), 9.75% Cash, 6/28/2024	12/2/2015	$	19,760,000		19,565,410		19,672,421		8.8	%

																Total Education					73,515,796		72,626,161		32.4	%

TMAC Acquisition Co., LLC (k)															Food and Beverage	Unsecured Term Loan 8.00% PIK, 9/01/2023	3/1/2018	$	2,216,427		2,216,427		2,073,911		0.9	%

																Total Food and Beverage					2,216,427		2,073,911		0.9	%

Axiom Parent Holdings, LLC (h)															Healthcare Services	Common Stock Class A Units	6/19/2018		400,000		400,000		463,092		0.2	%
Axiom Purchaser, Inc. (d)															Healthcare Services	First Lien Term Loan (3M USD LIBOR+6.00%), 8.14% Cash, 6/19/2023	6/19/2018	$	10,000,000		9,928,799		9,990,886		4.5	%
Axiom Purchaser, Inc. (d), (j)															Healthcare Services	Delayed Draw Term Loan (3M USD LIBOR+6.00%), 8.14% Cash, 6/19/2023	6/19/2018	$	3,000,000		2,974,511		2,997,300		1.4	%
Censis Technologies, Inc.															Healthcare Services	First Lien Term Loan B (1M USD LIBOR+8.30%), 10.39% Cash, 9/28/2022	7/25/2014	$	40,000,000		39,731,576		39,928,000		17.8	%
Censis Technologies, Inc. (h), (i)															Healthcare Services	Limited Partner Interests	7/25/2014		999		—		4,262,368		1.9	%
ComForCare Health Care															Healthcare Services	First Lien Term Loan (3M USD LIBOR+7.50%), 9.64% Cash, 1/31/2022	1/31/2017	$	15,000,000		14,909,709		15,082,500		6.7	%
HemaTerra Holding Company, LLC															Healthcare Services	First Lien Term Loan (3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024	4/15/2019	$	6,000,000		5,941,536		5,940,000		2.6	%
HemaTerra Holding Company, LLC (j)															Healthcare Services	Delayed Draw Term Loan (3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024	4/15/2019	$	10,000,000		9,903,478		9,900,000		4.4	%
TRC HemaTerra, LLC (h)															Healthcare Services	Class D Membership Interests	4/15/2019		2,000,000		2,000,000		2,000,000		0.9	%
Ohio Medical, LLC (h)															Healthcare Services	Common Stock	1/15/2016		5,000		500,000		515,000		0.2	%
Ohio Medical, LLC															Healthcare Services	Senior Subordinated Note 12.00% Cash, 7/15/2021	1/15/2016	$	7,300,000		7,269,188		7,300,000		3.3	%
PDDS Buyer, LLC															Healthcare Services	First Lien Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024	7/15/2019	$	12,000,000		11,881,304		11,880,000		5.3	%
PDDS Buyer, LLC (j)															Healthcare Services	Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024	7/15/2019	$	—		—		—		0.0	%
Roscoe Medical, Inc. (h)															Healthcare Services	Common Stock	3/26/2014		5,081.0000		508,077		—		0.0	%
Roscoe Medical, Inc. (k)															Healthcare Services	Second Lien Term Loan 11.25% Cash, 3/28/2021	3/26/2014	$	4,200,000		4,198,815		1,862,700		0.8	%

																Total Healthcare Services					110,146,993		112,121,846		50.0	%

Sub TotalNon-control/Non-affiliate investments																					376,936,296		379,070,267		169.0	%

Affiliate investments—7.9% (b)														Affiliate investments—7.9% (b)
Top Gun Pressure Washing, LLC (f)															Business Services	First Lien Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024	8/12/2019	$	5,000,000		4,950,031		4,950,000		2.2	%
Top Gun Pressure Washing, LLC (f), (j)															Business Services	Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024	8/12/2019	$	—		—		—		0.0	%
TG Pressure Washing Holdings, LLC (f), (h)															Business Services	Preferred Equity	8//12/2019		350,000		350,000		350,000		0.1	%
GreyHeller LLC (f)															Business Services	First Lien Term Loan (3M USD LIBOR+11.00%), 13.14% Cash, 11/16/2021	11/17/2016	$	7,000,000		6,962,580		7,140,000		3.2	%
GreyHeller LLC (f), (h)															Business Services	Series A Preferred Units	11/17/2016		850,000		850,000		2,184,652		1.0	%

																Total Business Services					13,112,611		14,624,652		6.5	%

Elyria Foundry Company, L.L.C. (f), (h)															Metals	Common Stock	7/30/2010		60,000		9,685,028		2,022,600		0.9	%
Elyria Foundry Company, L.L.C. (d), (f)															Metals	Second Lien Term Loan 15.00% PIK, 8/10/2022	7/30/2010	$	1,103,667		1,103,667		1,103,667		0.5	%

																Total Metals					10,788,695		3,126,267		1.4	%

Sub Total Affiliate investments																					23,901,306		17,750,919		7.9	%

Control investments—40.1% (b)
Easy Ice, LLC (g)															Business Services	Preferred Equity 10.00% PIK	2/3/2017		5,080,000		10,176,602		15,421,173		6.9	%
Easy Ice, LLC (d), (g)															Business Services	Second Lien Term Loan 7.03% Cash/5.97% PIK, 2/28/2023	3/29/2013	$	22,462,081		22,404,083		22,688,948		10.1	%
Easy Ice Masters, LLC (d), (g)															Business Services	Second Lien Term Loan 7.03% Cash/5.97% PIK, 2/28/2023	10/31/2018	$	4,159,497		4,139,200		4,201,508		1.8	%
Netreo Holdings, LLC (g)															Business Services	First Lien Term Loan (3M USD LIBOR +6.25%), 9.00% Cash/2.00% PIK, 7/3/2023	7/3/2018	$	5,110,273		5,066,195		5,212,479		2.3	%
Netreo Holdings, LLC (g), (h)															Business Services	Common Stock Class A Unit	7/3/2018		3,150,000		3,150,000		6,641,208		3.0	%

																Total Business Services					44,936,080		54,165,316		24.1	%

Saratoga Investment Corp. CLO2013-1, Ltd. (a), (e), (g)															Structured Finance Securities	Other/Structured Finance Securities 16.00%, 1/20/2030	1/22/2008	$	69,500,000		25,555,912		26,000,216		11.6	%
Saratoga Investment Corp. CLO2013-1, Ltd.Class F-R-2 Note (a), (g)															Structured Finance Securities	Other/Structured Finance Securities (3M USD LIBOR+8.75%), 10.89%, 1/20/2030	12/14/2018	$	2,500,000		2,500,000		2,473,155		1.1	%
Saratoga Investment Corp. CLO2013-1, Ltd.Class G-R-2 Note (a), (g)															Structured Finance Securities	Other/Structured Finance Securities (3M USD LIBOR+10.00%), 12.14%, 1/20/2030	12/14/2018	$	7,500,000		7,500,000		7,420,350		3.3	%

			Total Structured Finance Securities					34,899,215		37,965,353		20.3	%			Total Structured Finance Securities					35,555,912		35,893,721		16.0	%

Sub Total Control investments								78,739,023		87,945,041		47.0	%	Sub Total Control investments							80,491,992		90,059,037		40.1	%

TOTAL INVESTMENTS—219.2% (b)							$	405,358,584	$	409,451,341		219.2	%
TOTAL INVESTMENTS—217.0% (b)														TOTAL INVESTMENTS—217.0% (b)						$	481,329,594	$	486,880,223		217.0	%


					Number of Shares		Cost		Fair Value		% of Net Assets							Number of Shares		Cost		Fair Value		% of Net Assets
Cash and cash equivalents and cash and cash equivalents, reserve accounts—32.7% (b)
Cash and cash equivalents and cash and cash equivalents, reserve accounts—10.8% (b)														Cash and cash equivalents and cash and cash equivalents, reserve accounts—10.8% (b)
U.S. Bank Money Market (l)	U.S. Bank Money Market (l)					60,996,247	$	60,996,247	$	60,996,247		32.7	%						24,118,425	$	24,118,425	$	24,118,425		10.8	%

Total cash and cash equivalents and cash and cash equivalents, reserve accounts	Total cash and cash equivalents and cash and cash equivalents, reserve accounts					60,996,247	$	60,996,247	$	60,996,247		32.7	%	Total cash and cash equivalents and cash and cash equivalents, reserve accounts					24,118,425	$	24,118,425	$	24,118,425		10.8	%

(a)

Represents anon-qualifying investment as defined under Section 55(a) of the Investment Company Act of 1940, as amended. As of ~~May~~August 31, 2019,non-qualifying assets represent ~~16.5%~~13.8% of the Company’s portfolio at fair value. As a BDC, the Company can only invest 30% of its portfolio innon-qualifying assets.

(b)	Percentages are based on net assets of ~~$186,783,701~~$224,336,567 as of ~~May~~August 31, 2019.

(c)

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

(d)	These securities are either fully or partially pledged as collateral under a senior secured revolving credit facility (see Note 67 to the consolidated financial statements).

(e)

This investment does not have a stated interest rate that is payable thereon. As a result, the ~~19.50%~~16.00% interest rate in the table above represents the effective interest rate currently earned on the investment cost and is based on the current cash interest and other income generated by the investment.

(f)	As defined in the Investment Company Act, this portfolio company is an Affiliate as we own between 5.0% and 25.0% of the voting securities. Transactions during the ~~quarter~~six months ended ~~May~~August 31, 2019 in which the issuer was an Affiliate are as follows:


Company	Purchases		Sales		Total Interest from Investments		Management Fee Income		Net Realized Gain (Loss) from Investments		Net Change in Unrealized Appreciation		Purchases		Sales		Total Interest from Investments		Management Fee Income		Net Realized Gain (Loss) from Investments		Net Change in Unrealized Appreciation (Depreciation)
GreyHeller LLC	$	—	$	—	$	249,325	$	—	$	—	$	130,344	$	—	$	—	$	490,543	$	—	$	—	$	682,879
Elyria Foundry Company, L.L.C.		—		—		40,150		—		—		39,600		—		—		81,415		—		—		218,400
Top Gun Pressure Washing, LLC														5,300,000		—		26,315		—		—		(31	)

Total	$	—	$	—	$	289,475	$	—	$	—	$	169,944	$	5,300,000	$	—	$	598,273	$	—	$	—	$	901,248

~~See accompanying notes to consolidated financial statements.~~

(g)

As defined in the Investment Company Act, we “Control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the ~~quarter~~six months ended ~~May~~August 31, 2019 in which the issuer was both an Affiliate and a portfolio company that we Control are as follows:


Company	Purchases		Sales		Total Interest from Investments		Management Fee Income		Net Realized Gain (Loss) from Investments		Net Change in Unrealized Appreciation (Depreciation)			Purchases		Sales		Total Interest from Investments		Management Fee Income		Net Realized Gain (Loss) from Investments		Net Change in Unrealized Appreciation (Depreciation)
Easy Ice, LLC	$	—	$	—	$	961,894	$	—	$	—	$	(76,286	)	$	—	$	—	$	1,919,082	$	—	$	—	$	1,712,826
Easy Ice Masters, LLC		—		—		130,808		—		—		4,762			—		—		258,458		—		—		10,872
Netreo Holdings, LLC		—		—		143,991		—		—		242,491			—		—		279,104		—		—		1,536,625
Saratoga Investment Corp. CLO2013-1, Ltd.		—		—		1,081,435		629,516		—		1,247,780			—		—		2,212,355		1,259,261		—		(1,432,806	)
Saratoga Investment Corp. CLO2013-1, Ltd.Class F-R-2 Notes		—		—		72,982		—		—		1,683			—		—		151,062		—		—		(10,345	)
Saratoga Investment Corp. CLO2013-1, Ltd.Class G-R-2 Notes				—		242,905		—		—		5,565			—		—		481,647		—		—		(30,150	)

Total	$	—	$	—	$	2,634,015	$	629,516	$	—	$	1,425,995		$	—	$	—	$	5,301,708	$	1,259,261	$	—	$	1,787,022

(h)	Non-income producing at ~~May~~August 31, 2019.

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

(j)	All or a portion of this investment has an unfunded commitment as of ~~May~~August 31, 2019. (see Note 78 to the consolidated financial statements).

(k)	As of ~~May~~August 31, 2019, the investment was onnon-accrual status. The fair value of these investments was approximately ~~$4.9~~$3.9 million, which represented ~~1.2%~~0.8% of the Company’s portfolio (see Note 2 to the consolidated financial statements).

(l)	Included within cash and cash equivalents and cash and cash equivalents, reserve accounts in the Company’s consolidated statements of assets and liabilities as of ~~May~~August 31, 2019.

LIBOR—London Interbank Offered Rate

1M USD ~~LIBOR -~~ LIBOR—The 1 month USD LIBOR rate as of ~~May~~August 31, 2019 was ~~2.43%~~2.09%.

3M USD ~~LIBOR -~~ LIBOR—The 3 month USD LIBOR rate as of ~~May~~August 31, 2019 was ~~2.50%~~2.14%.

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

See accompanying notes to consolidated financial statements.

Saratoga Investment Corp.

Consolidated Schedule of Investments

February 28, 2019

Company
Industry
Investment Interest Rate/
Maturity
Original
Acquisition
Date Principal/
Number of
Shares Cost Fair Value (c) % of
Net Assets
Non-control/Non-affiliate investments—169.5% (b)

Apex Holdings Software Technologies, LLC
Business Services First Lien Term Loan
(3M USD LIBOR+8.00%), 10.62% Cash, 9/21/2021 9/21/2016 $ 18,000,000 $ 17,922,851 $ 18,000,000 10.0 %
Apex Holdings Software Technologies, LLC
Business Services Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 10.62% Cash, 9/21/2021 10/1/2018 $ 1,000,000 992,183 1,000,000 0.6 %
Avionte Holdings, LLC (h)
Business Services Class A Units 1/8/2014 100,000 100,000 635,781 0.4 %
CLEO Communications Holding, LLC
Business Services First Lien Term Loan
(3M USD LIBOR+8.00%), 10.62% Cash/2.00% PIK, 3/31/2022 3/31/2017 $ 13,514,320 13,437,153 13,514,320 7.5 %
CLEO Communications Holding, LLC
Business Services Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 10.62% Cash/2.00% PIK, 3/31/2022 3/31/2017 $ 12,142,015 12,040,280 12,142,015 6.7 %
Destiny Solutions Inc. (a)
Business Services First Lien Term Loan
(3M USD LIBOR+7.00%), 9.62% Cash, 5/16/2023 5/16/2018 $ 8,500,000 8,426,441 8,489,800 4.7 %
Destiny Solutions Inc. (a), (j)
Business Services Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.62% Cash, 5/16/2023 5/16/2018 $ — — — 0.0 %
Destiny Solutions Inc. (a), (h), (i)
Business Services Limited Partner Interests 5/16/2018 999,000 999,000 1,062,440 0.6 %
Emily Street Enterprises, L.L.C.
Business Services Senior Secured Note
(3M USD LIBOR+8.50%), 11.12% Cash, 1/23/2020 12/28/2012 $ 3,300,000 3,299,122 3,314,520 1.8 %
Emily Street Enterprises,
L.L.C. (h)
Business Services Warrant Membership Interests
Expires 12/28/2022 12/28/2012 49,318 400,000 505,509 0.3 %
Erwin, Inc. (d)
Business Services Second Lien Term Loan
(3M USD LIBOR+11.50%), 14.12% Cash/1.00% PIK, 8/28/2021 2/29/2016 $ 15,888,102 15,796,316 15,888,102 8.8 %
FMG Suite Holdings, LLC (d)
Business Services Second Lien Term Loan
(1M USD LIBOR+8.00%), 10.49% Cash, 11/16/2023 5/16/2018 $ 23,000,000 22,844,123 23,000,000 12.7 %

~~See accompanying notes to consolidated financial statements.~~

Company
Industry
Investment Interest Rate/
Maturity
Original
Acquisition
Date Principal/
Number of
Shares Cost Fair Value (c) % of
Net��Assets
GDS Holdings US, LLC (d)
Business Services First Lien Term Loan
(3M USD LIBOR+7.00%), 9.62% Cash, 8/23/2023 8/23/2018 $ 7,500,000 7,430,649 7,495,500 4.0 %
GDS Holdings US, LLC (j)
Business Services Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.62% Cash, 8/23/2023 8/23/2018 $ —   —   —   0.0 %
GDS Software Holdings, LLC (h)
Business Services Common Stock Class A Units 8/23/2018 250,000 250,000 277,139 0.2 %
Identity Automation Systems (h)
Business Services Common Stock Class A Units 8/25/2014 232,616 232,616 629,555 0.3 %
Identity Automation Systems (d)
Business Services First Lien Term Loan
(3M USD LIBOR+9.00%), 11.62% Cash, 3/31/2021 8/25/2014 $ 24,100,000 23,991,294 24,100,000 13.3 %
Knowland Group, LLC
Business Services Second Lien Term Loan
(3M USD LIBOR+8.00%), 10.62% Cash, 5/9/2024 11/9/2018 $ 15,000,000 15,000,000 15,000,000 8.3 %
Microsystems Company
Business Services Second Lien Term Loan
(3M USD LIBOR+8.25%), 10.87% Cash, 7/1/2022 7/1/2016 $ 18,000,000 17,889,554 17,881,200 9.9 %
National Waste Partners (d)
Business Services Second Lien Term Loan
10.00% Cash, 2/13/2022 2/13/2017 $ 9,000,000 8,942,155 8,864,100 4.9 %
Omatic Software, LLC
Business Services First Lien Term Loan
(3M USD LIBOR+8.00%), 10.62% Cash, 5/29/2023 5/29/2018 $ 5,500,000 5,451,758 5,537,400 3.1 %
Omatic Software, LLC (j)
Business Services Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 10.62% Cash, 5/29/2023 5/29/2018 $ —   —   —   0.0 %
Passageways, Inc.
Business Services First Lien Term Loan
(3M USD LIBOR+7.75%), 10.37% Cash, 7/5/2023 7/5/2018 $ 5,000,000 4,955,204 5,063,500 2.8 %
Passageways, Inc. (h)
Business Services Series A Preferred Stock 7/5/2018 2,027,205 1,000,000 1,339,705 0.7 %
Vector Controls Holding Co.,
LLC (d)
Business Services First Lien Term Loan
11.50% (9.75% Cash/1.75% PIK), 3/6/2022 3/6/2013 $ 9,311,956 9,310,703 9,371,929 5.2 %
Vector Controls Holding Co.,
LLC (h)
Business Services Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015 343 —   2,210,149 1.2 %

Total Business Services 190,711,402 195,322,664 108.0 %

Targus Holdings, Inc. (h)
Consumer Products Common Stock 12/31/2009 210,456 1,713,605 505,094 0.3 %

Total Consumer Products 1,713,605 505,094 0.3 %

~~See accompanying notes to consolidated financial statements.~~

Company
Industry
Investment Interest Rate/
Maturity
Original
Acquisition
Date Principal/
Number of
Shares Cost Fair Value (c) % of
Net Assets
My Alarm Center, LLC (k)
Consumer Services Preferred Equity Class A Units
8.00% PIK 7/14/2017 2,227 2,357,879 1,112,543 0.6 %
My Alarm Center, LLC (h)
Consumer Services Preferred Equity Class B Units 7/14/2017 1,797 1,796,880 —   0.0 %
My Alarm Center, LLC
Consumer Services Preferred Equity Class Z Units
25.00% PIK 9/12/2018 676 655,987 2,053,514 1.1 %
My Alarm Center, LLC (h)
Consumer Services Common Stock 7/14/2017 96,224 —   —   0.0 %

Total Consumer Services 4,810,746 3,166,057 1.7 %

C2 Educational Systems (d)
Education First Lien Term Loan
(3M USD LIBOR+7.00%), 9.62% Cash, 5/31/2020 5/31/2017 $ 16,000,000 15,929,485 16,032,000 8.9 %
Kev Software Inc. (a)
Education First Lien Term Loan
(1M USD LIBOR+8.63%), 11.12% Cash, 9/13/2023 9/13/2018 $ 21,446,929 21,273,211 21,438,351 11.9 %
M/C Acquisition Corp., L.L.C. (h)
Education Class A Common Stock 6/22/2009 544,761 30,241 —   0.0 %
M/C Acquisition Corp., L.L.C. (k)
Education First Lien Term Loan
1.00% Cash, 3/31/2020 8/10/2004 $ 2,315,090 1,189,177 6,260 0.0 %
Texas Teachers of Tomorrow, LLC (h), (i)
Education Common Stock 12/2/2015 750,000 750,000 792,165 0.4 %
Texas Teachers of Tomorrow, LLC
Education Second Lien Term Loan
(3M USD LIBOR+9.75%), 12.37% Cash, 6/2/2021 12/2/2015 $ 10,000,000 9,952,251 9,807,000 5.4 %

Total Education 49,124,365 48,075,776 26.6 %

TMAC Acquisition Co., LLC (k)
Food and Beverage Unsecured Term Loan
8.00% PIK, 9/01/2023 3/1/2018 $ 2,216,427 2,216,427 2,100,286 1.2 %

Total Food and Beverage 2,216,427 2,100,286 1.2 %

Axiom Parent Holdings, LLC (h)
Healthcare Services Common Stock Class A Units 6/19/2018 400,000 400,000 402,990 0.2 %
Axiom Purchaser, Inc. (d)
Healthcare Services First Lien Term Loan
(3M USD LIBOR+6.00%), 8.62% Cash, 6/19/2023 6/19/2018 $ 10,000,000 9,923,962 10,020,000 5.5 %
Axiom Purchaser, Inc. (j)
Healthcare Services
Delayed Draw Term Loan
(3M USD LIBOR+6.00%), 8.62% Cash, 6/19/2023
6/19/2018 $ —   —   —   0.0 %
Censis Technologies, Inc.
Healthcare Services First Lien Term Loan B
(1M USD LIBOR+8.30%), 10.79% Cash, 9/27/2023 7/25/2014 $ 19,950,000 19,877,861 19,991,895 11.1 %

~~See accompanying notes to consolidated financial statements.~~

Company
Industry
Investment Interest Rate/
Maturity
Original
Acquisition
Date Principal/
Number of
Shares Cost Fair Value (c) % of
Net Assets
Censis Technologies, Inc. (h), (i)
Healthcare Services Limited Partner Interests 7/25/2014 999 999,000 2,387,705 1.3 %
ComForCare Health Care
Healthcare Services First Lien Term Loan
(3M USD LIBOR+7.50%), 10.12% Cash, 1/31/2022 1/31/2017 $ 15,000,000 14,898,535 15,096,000 8.3 %
Ohio Medical, LLC (h)
Healthcare Services Common Stock 1/15/2016 5,000 500,000 208,250 0.1 %
Ohio Medical, LLC
Healthcare Services Senior Subordinated Note
12.00% Cash, 7/15/2021 1/15/2016 $ 7,300,000 7,263,114 6,735,710 3.8 %
Roscoe Medical, Inc. (h)
Healthcare Services Common Stock 3/26/2014 5,081 508,077 — 0.0 %
Roscoe Medical, Inc. (k)
Healthcare Services Second Lien Term Loan
11.25% Cash, 3/28/2021 3/26/2014 $ 4,200,000 4,189,094 2,499,000 1.4 %
Total Healthcare Services 58,559,643 57,341,550 31.7 %

Sub TotalNon-control/Non-affiliate investments
307,136,188 306,511,427 169.5 %

Affiliate investments - 6.3% (b)

GreyHeller LLC (f)
Business Services First Lien Term Loan
(3M USD LIBOR+11.00%), 13.62% Cash, 11/16/2021 11/17/2016 $ 7,000,000 6,956,976 7,140,000 4.0 %
GreyHeller LLC (f), (h)
Business Services Series A Preferred Units 11/17/2016 850,000 850,000 1,496,169 0.8 %

Total Business Services 7,806,976 8,636,169 4.8 %

Elyria Foundry Company,
L.L.C. (f), (h)
Metals Common Stock 7/30/2010 60,000 9,685,028 1,804,200 1.0 %
Elyria Foundry Company,
L.L.C. (d), (f)
Metals Second Lien Term Loan
15.00% PIK, 8/10/2022 7/30/2010 $ 1,022,712 1,022,712 1,022,712 0.5 %

Total Metals 10,707,740 2,826,912 1.5 %

Sub Total Affiliate investments
18,514,716 11,463,081 6.3 %

Control investments—46.5% (b)

Easy Ice, LLC (g)
Business Services Preferred Equity
10.00% PIK 2/3/2017 5,080,000 9,683,612 13,357,444 7.4 %
Easy Ice, LLC (d), (g)
Business Services Second Lien Term Loan
7.03% Cash/5.97% PIK, 2/28/2023 3/29/2013 $ 21,184,063 21,126,021 21,268,799 11.8 %
Easy Ice Masters, LLC (d), (g)
Business Services Second Lien Term Loan
7.03% Cash/5.97% PIK, 2/28/2023 10/31/2018 $ 3,804,244 3,768,025 3,819,461 2.1 %
Netreo Holdings, LLC (g)
Business Services First Lien Term Loan
(3M USD LIBOR +6.25%), 9.00% Cash/2.00% PIK,
7/3/2023 7/3/2018 $ 5,067,057 5,021,133 5,092,899 2.8 %

~~See accompanying notes to consolidated financial statements.~~


Company		Industry		Investment Interest Rate/ Maturity	Original Acquisition Date		Principal/ Number of Shares		Cost		Fair Value (c)		% of Net Assets				Industry	Investment Interest Rate/ Maturity	Original Acquisition Date		Principal/ Number of Shares		Cost		Fair Value (c)		% of Net Assets
Non-control/Non-affiliate investments - 169.5% (b)																Non-control/Non-affiliate investments - 169.5% (b)
Apex Holdings Software Technologies, LLC																	Business Services	First Lien Term Loan (3M USD LIBOR+8.00%), 10.62% Cash, 9/21/2021		9/21/2016	$	18,000,000	$	17,922,851	$	18,000,000		10.0	%
Apex Holdings Software Technologies, LLC																	Business Services	Delayed Draw Term Loan (3M USD LIBOR+8.00%), 10.62% Cash, 9/21/2021		10/1/2018	$	1,000,000		992,183		1,000,000		0.6	%
Avionte Holdings, LLC (h)																	Business Services	Class A Units		1/8/2014		100,000		100,000		635,781		0.4	%
CLEO Communications Holding, LLC																	Business Services	First Lien Term Loan (3M USD LIBOR+8.00%), 10.62% Cash/2.00% PIK, 3/31/2022		3/31/2017	$	13,514,320		13,437,153		13,514,320		7.5	%
CLEO Communications Holding, LLC																	Business Services	Delayed Draw Term Loan (3M USD LIBOR+8.00%), 10.62% Cash/2.00% PIK, 3/31/2022		3/31/2017	$	12,142,015		12,040,280		12,142,015		6.7	%
Destiny Solutions Inc. (a)																	Business Services	First Lien Term Loan (3M USD LIBOR+7.00%), 9.62% Cash, 5/16/2023		5/16/2018	$	8,500,000		8,426,441		8,489,800		4.7	%
Destiny Solutions Inc. (a), (j)																	Business Services	Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.62% Cash, 5/16/2023		5/16/2018	$	—		—		—		0.0	%
Destiny Solutions Inc. (a), (h), (i)																	Business Services	Limited Partner Interests		5/16/2018		999,000		999,000		1,062,440		0.6	%
Emily Street Enterprises, L.L.C.																	Business Services	Senior Secured Note (3M USD LIBOR+8.50%), 11.12% Cash, 1/23/2020		12/28/2012	$	3,300,000		3,299,122		3,314,520		1.8	%
Emily Street Enterprises, L.L.C. (h)																	Business Services	Warrant Membership Interests Expires 12/28/2022		12/28/2012		49,318		400,000		505,509		0.3	%
Erwin, Inc. (d)																	Business Services	Second Lien Term Loan (3M USD LIBOR+11.50%), 14.12% Cash/1.00% PIK, 8/28/2021		2/29/2016	$	15,888,102		15,796,316		15,888,102		8.8	%
FMG Suite Holdings, LLC (d)																	Business Services	Second Lien Term Loan (1M USD LIBOR+8.00%), 10.49% Cash, 11/16/2023		5/16/2018	$	23,000,000		22,844,123		23,000,000		12.7	%
GDS Holdings US, LLC (d)																	Business Services	First Lien Term Loan (3M USD LIBOR+7.00%), 9.62% Cash, 8/23/2023		8/23/2018	$	7,500,000		7,430,649		7,495,500		4.0	%
GDS Holdings US, LLC (j)																	Business Services	Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.62% Cash, 8/23/2023		8/23/2018	$	—		—		—		0.0	%
GDS Software Holdings, LLC (h)																	Business Services	Common Stock Class A Units		8/23/2018		250,000		250,000		277,139		0.2	%
Identity Automation Systems (h)																	Business Services	Common Stock Class A Units		8/25/2014		232,616		232,616		629,555		0.3	%
Identity Automation Systems (d)																	Business Services	First Lien Term Loan (3M USD LIBOR+9.00%), 11.62% Cash, 3/31/2021		8/25/2014	$	24,100,000		23,991,294		24,100,000		13.3	%
Knowland Group, LLC																	Business Services	Second Lien Term Loan (3M USD LIBOR+8.00%), 10.62% Cash, 5/9/2024		11/9/2018	$	15,000,000		15,000,000		15,000,000		8.3	%
Microsystems Company																	Business Services	Second Lien Term Loan (3M USD LIBOR+8.25%), 10.87% Cash, 7/1/2022		7/1/2016	$	18,000,000		17,889,554		17,881,200		9.9	%
National Waste Partners (d)																	Business Services	Second Lien Term Loan 10.00% Cash, 2/13/2022		2/13/2017	$	9,000,000		8,942,155		8,864,100		4.9	%
Omatic Software, LLC																	Business Services	First Lien Term Loan (3M USD LIBOR+8.00%), 10.62% Cash, 5/29/2023		5/29/2018	$	5,500,000		5,451,758		5,537,400		3.1	%
Omatic Software, LLC (j)																	Business Services	Delayed Draw Term Loan (3M USD LIBOR+8.00%), 10.62% Cash, 5/29/2023		5/29/2018	$	—		—		—		0.0	%
Passageways, Inc.																	Business Services	First Lien Term Loan (3M USD LIBOR+7.75%), 10.37% Cash, 7/5/2023		7/5/2018	$	5,000,000		4,955,204		5,063,500		2.8	%
Passageways, Inc. (h)																	Business Services	Series A Preferred Stock		7/5/2018		2,027,205		1,000,000		1,339,705		0.7	%
Vector Controls Holding Co., LLC (d)																	Business Services	First Lien Term Loan 11.50% (9.75% Cash/1.75% PIK), 3/6/2022		3/6/2013	$	9,311,956		9,310,703		9,371,929		5.2	%
Vector Controls Holding Co., LLC (h)																	Business Services	Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027		5/31/2015		343		—		2,210,149		1.2	%

																		Total Business Services						190,711,402		195,322,664		108.0	%

Targus Holdings, Inc. (h)																	Consumer Products	Common Stock		12/31/2009		210,456		1,713,605		505,094		0.3	%

																		Total Consumer Products						1,713,605		505,094		0.3	%

My Alarm Center, LLC (k)																	Consumer Services	Preferred Equity Class A Units 8.00% PIK		7/14/2017		2,227		2,357,879		1,112,543		0.6	%
My Alarm Center, LLC (h)																	Consumer Services	Preferred Equity Class B Units		7/14/2017		1,797		1,796,880		—		0.0	%
My Alarm Center, LLC																	Consumer Services	Preferred Equity Class Z Units 25.00% PIK		9/12/2018		676		655,987		2,053,514		1.1	%
My Alarm Center, LLC (h)																	Consumer Services	Common Stock		7/14/2017		96,224		—		—		0.0	%

																		Total Consumer Services						4,810,746		3,166,057		1.7	%

C2 Educational Systems (d)																	Education	First Lien Term Loan (3M USD LIBOR+7.00%), 9.62% Cash, 5/31/2020		5/31/2017	$	16,000,000		15,929,485		16,032,000		8.9	%
Kev Software Inc. (a)																	Education	First Lien Term Loan (1M USD LIBOR+8.63%), 11.12% Cash, 9/13/2023		9/13/2018	$	21,446,929		21,273,211		21,438,351		11.9	%
M/C Acquisition Corp., L.L.C. (h)																	Education	Class A Common Stock		6/22/2009		544,761		30,241		—		0.0	%
M/C Acquisition Corp., L.L.C. (k)																	Education	First Lien Term Loan 1.00% Cash, 3/31/2020		8/10/2004	$	2,315,090		1,189,177		6,260		0.0	%
Texas Teachers of Tomorrow, LLC (h), (i)																	Education	Common Stock		12/2/2015		750,000		750,000		792,165		0.4	%
Texas Teachers of Tomorrow, LLC																	Education	Second Lien Term Loan (3M USD LIBOR+9.75%), 12.37% Cash, 6/2/2021		12/2/2015	$	10,000,000		9,952,251		9,807,000		5.4	%

																		Total Education						49,124,365		48,075,776		26.6	%

TMAC Acquisition Co., LLC (k)																	Food and Beverage	Unsecured Term Loan 8.00% PIK, 9/01/2023		3/1/2018	$	2,216,427		2,216,427		2,100,286		1.2	%

																		Total Food and Beverage						2,216,427		2,100,286		1.2	%

Axiom Parent Holdings, LLC (h)																	Healthcare Services	Common Stock Class A Units		6/19/2018		400,000		400,000		402,990		0.2	%
Axiom Purchaser, Inc. (d)																	Healthcare Services	First Lien Term Loan (3M USD LIBOR+6.00%), 8.62% Cash, 6/19/2023		6/19/2018	$	10,000,000		9,923,962		10,020,000		5.5	%
Axiom Purchaser, Inc. (j)																	Healthcare Services	Delayed Draw Term Loan (3M USD LIBOR+6.00%), 8.62% Cash, 6/19/2023		6/19/2018	$	—		—		—		0.0	%
Censis Technologies, Inc.																	Healthcare Services	First Lien Term Loan B (1M USD LIBOR+8.30%), 10.79% Cash, 9/27/2023		7/25/2014	$	19,950,000		19,877,861		19,991,895		11.1	%
Censis Technologies, Inc. (h), (i)																	Healthcare Services	Limited Partner Interests		7/25/2014		999		999,000		2,387,705		1.3	%
ComForCare Health Care																	Healthcare Services	First Lien Term Loan (3M USD LIBOR+7.50%), 10.12% Cash, 1/31/2022		1/31/2017	$	15,000,000		14,898,535		15,096,000		8.3	%
Ohio Medical, LLC (h)																	Healthcare Services	Common Stock		1/15/2016		5,000		500,000		208,250		0.1	%
Ohio Medical, LLC																	Healthcare Services	Senior Subordinated Note 12.00% Cash, 7/15/2021		1/15/2016	$	7,300,000		7,263,114		6,735,710		3.8	%
Roscoe Medical, Inc. (h)																	Healthcare Services	Common Stock		3/26/2014		5,081		508,077		—		0.0	%
Roscoe Medical, Inc. (k)																	Healthcare Services	Second Lien Term Loan 11.25% Cash, 3/28/2021		3/26/2014	$	4,200,000		4,189,094		2,499,000		1.4	%

																		Total Healthcare Services						58,559,643		57,341,550		31.7	%

Sub TotalNon-control/Non-affiliate investments																Sub TotalNon-control/Non-affiliate investments								307,136,188		306,511,427		169.5	%

Affiliate investments - 6.3% (b)																Affiliate investments - 6.3% (b)
GreyHeller LLC (f)																	Business Services	First Lien Term Loan (3M USD LIBOR+11.00%), 13.62% Cash, 11/16/2021		11/17/2016	$	7,000,000		6,956,976		7,140,000		4.0	%
GreyHeller LLC (f), (h)																	Business Services	Series A Preferred Units		11/17/2016		850,000		850,000		1,496,169		0.8	%

																		Total Business Services						7,806,976		8,636,169		4.8	%

Elyria Foundry Company, L.L.C. (f), (h)																	Metals	Common Stock		7/30/2010		60,000		9,685,028		1,804,200		1.0	%
Elyria Foundry Company, L.L.C. (d), (f)																	Metals	Second Lien Term Loan 15.00% PIK, 8/10/2022		7/30/2010	$	1,022,712		1,022,712		1,022,712		0.5	%

																		Total Metals						10,707,740		2,826,912		1.5	%

Sub Total Affiliate investments																Sub Total Affiliate investments								18,514,716		11,463,081		6.3	%

Control investments - 46.5% (b)																Control investments - 46.5% (b)
Easy Ice, LLC (g)																	Business Services	Preferred Equity 10.00% PIK		2/3/2017		5,080,000		9,683,612		13,357,444		7.4	%
Easy Ice, LLC (d), (g)																	Business Services	Second Lien Term Loan 7.03% Cash/5.97% PIK, 2/28/2023		3/29/2013	$	21,184,063		21,126,021		21,268,799		11.8	%
Easy Ice Masters, LLC (d), (g)																	Business Services	Second Lien Term Loan 7.03% Cash/5.97% PIK, 2/28/2023		10/31/2018	$	3,804,244		3,768,025		3,819,461		2.1	%
Netreo Holdings, LLC (g)																	Business Services	First Lien Term Loan (3M USD LIBOR +6.25%), 9.00% Cash/2.00% PIK, 7/3/2023		7/3/2018	$	5,067,057		5,021,133		5,092,899		2.8	%
Netreo Holdings, LLC (g), (h)			Business Services	Common Stock Class A Unit		7/3/2018		3,150,000		3,150,000		5,179,101		2.9	%		Business Services	Common Stock Class A Unit		7/3/2018		3,150,000		3,150,000		5,179,101		2.9	%

				Total Business Services						42,748,791		48,717,704		27.0	%			Total Business Services						42,748,791		48,717,704		27.0	%


Saratoga Investment Corp. CLO2013-1, Ltd. (a), (e), (g)			Structured Finance Securities	Other/Structured Finance Securities 16.67%, 1/20/2030		1/22/2008	$	69,500,000		23,516,398		25,393,508		14.0	%		Structured Finance Securities	Other/Structured Finance Securities 16.67%, 1/20/2030		1/22/2008	$	69,500,000		23,516,398		25,393,508		14.0	%

Saratoga Investment Corp. CLO2013-1, Ltd.Class F-R-2 Note (a), (g)			Structured Finance Securities	Other/Structured Finance Securities (3M USD LIBOR+8.75%), 11.37%, 1/20/2030		12/14/2018	$	2,500,000		2,500,000		2,483,500		1.4	%		Structured Finance Securities	Other/Structured Finance Securities (3M USD LIBOR+8.75%), 11.37%, 1/20/2030		12/14/2018	$	2,500,000		2,500,000		2,483,500		1.4	%

Saratoga Investment Corp. CLO2013-1, Ltd.Class G-R-2 Note (a), (g)			Structured Finance Securities	Other/Structured Finance Securities (3M USD LIBOR+10.00%), 12.62%, 1/20/2030		12/14/2018	$	7,500,000		7,500,000		7,450,500		4.1	%		Structured Finance Securities	Other/Structured Finance Securities (3M USD LIBOR+10.00%), 12.62%, 1/20/2030		12/14/2018	$	7,500,000		7,500,000		7,450,500		4.1	%

				Total Structured Finance Securities						33,516,398		35,327,508		19.5	%			Total Structured Finance Securities						33,516,398		35,327,508		19.5	%

Sub Total Control investments										76,265,189		84,045,212		46.5	%	Sub Total Control investments								76,265,189		84,045,212		46.5	%

TOTAL INVESTMENTS—222.3% (b)									$	401,916,093	$	402,019,720		222.3	%
TOTAL INVESTMENTS - 222.3% (b)																TOTAL INVESTMENTS - 222.3% (b)							$	401,916,093	$	402,019,720		222.3	%


							Number of Shares		Cost		Fair Value		% of Net Assets								Number of Shares		Cost		Fair Value		% of Net Assets
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 34.3% (b)	Cash and cash equivalents and cash and cash equivalents, reserve accounts - 34.3% (b)															Cash and cash equivalents and cash and cash equivalents, reserve accounts - 34.3% (b)
U.S. Bank Money Market (l)	U.S. Bank Money Market (l)							62,094,394	$	62,094,394	$	62,094,394		34.3	%	U.S. Bank Money Market (l)						62,094,394	$	62,094,394	$	62,094,394		34.3	%

Total cash and cash equivalents and cash and cash equivalents, reserve accounts	Total cash and cash equivalents and cash and cash equivalents, reserve accounts							62,094,394	$	62,094,394	$	62,094,394		34.3	%	Total cash and cash equivalents and cash and cash equivalents, reserve accounts						62,094,394	$	62,094,394	$	62,094,394		34.3	%

(a)

Represents anon-qualifying investment as defined under Section 55(a) of the Investment Company Act of 1940, as amended. As of February 28, 2019,non-qualifying assets represent 16.5% of the Company’s portfolio at fair value. As a BDC, the Company can only invest 30% of its portfolio innon-qualifying assets.

(b)	Percentages are based on net assets of $180,875,187 as of February 28, 2019.

(c)

(d)	These securities are either fully or partially pledged as collateral under a senior secured revolving credit facility (see Note 7 to the consolidated financial statements).

(e)

This investment does not have a stated interest rate that is payable thereon. As a result, the 16.67% interest rate in the table above represents the effective interest rate currently earned on the investment cost and is based on the current cash interest and other income generated by the investment.

(f)	As defined in the Investment Company Act, this portfolio company is an Affiliate as we own between 5.0% and 25.0% of the voting securities. Transactions during the year ended February 28, 2019 in which the issuer was an Affiliate are as follows:


Company	Purchases		Sales		Total Interest from Investments		Management and Incentive Fee Income		Net Realized Gain (Loss) from Investments		Net Change in Unrealized Appreciation (Depreciation)			Purchases		Sales		Total Interest from Investments		Management and Incentive Fee Income		Net Realized Gain (Loss) from Investments		Net Change in Unrealized Appreciation (Depreciation)
GreyHeller LLC	$	—	$	—	$	963,289	$	—	$	—	$	776,012		$	—	$	—	$	963,289	$	—	$	—	$	776,012
Elyria Foundry Company, L.L.C.		—		—		150,284		—		—		(1,629,600	)		—		—		150,284		—		—		(1,629,600	)

Total	$	—	$	—	$	1,113,573	$	—	$	—	$	(853,588	)	$	—	$	—	$	1,113,573	$	—	$	—	$	(853,588	)

~~See accompanying notes to consolidated financial statements.~~

(g)

As defined in the Investment Company Act, we “Control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the year ended February 28, 2019 in which the issuer was both an Affiliate and a portfolio company that we Control are as follows:


Company	Purchases		Sales			Total Interest from Investments		Management and Incentive Fee Income		Net Realized Gain (Loss) from Investments		Net Change in Unrealized Appreciation (Depreciation)			Purchases		Sales			Total Interest from Investments		Management and Incentive Fee Income		Net Realized Gain (Loss) from Investments		Net Change in Unrealized Appreciation (Depreciation)
Easy Ice, LLC	$	1,684,448	$	—		$	3,424,369	$	—	$	—	$	1,720,004		$	1,684,448	$	—		$	3,424,369	$	—	$	—	$	1,720,004
Easy Ice Masters, LLC		3,629,682		—			161,468		—		—		51,436			3,629,682		—			161,468		—		—		51,436
Netreo Holdings, LLC		8,100,000		—			374,843		—		—		2,100,867			8,100,000		—			374,843		—		—		2,100,867
Saratoga Investment Corp. CLO2013-1, Ltd.		14,268,609		(48,083	)		2,922,372		2,355,412		—		(701,722	)		14,268,609		(48,083	)		2,922,372		2,355,412		—		(701,722	)
Saratoga Investment Corp. CLO2013-1, Ltd. Class F Note		—		(4,500,000	)		412,069		—		—		900			—		(4,500,000	)		412,069		—		—		900
Saratoga Investment Corp. CLO2013-1, Ltd.Class F-R-2 Notes		2,500,000		—			61,761		—		—		(16,500	)		2,500,000		—			61,761		—		—		(16,500	)
Saratoga Investment Corp. CLO2013-1, Ltd.Class G-R-2 Notes		7,500,000		—			205,333		—		—		(49,500	)		7,500,000		—			205,333		—		—		(49,500	)
Saratoga Investment Corp. CLO2013-1 Warehouse, Ltd.		20,000,000		(20,000,000	)		511,731		—		—		—			20,000,000		(20,000,000	)		511,731		—		—		—

Total	$	57,682,739	$	(24,548,083	)	$	8,073,946	$	2,355,412	$	—	$	3,105,485		$	57,682,739	$	(24,548,083	)	$	8,073,946	$	2,355,412	$	—	$	3,105,485

(h)	Non-income producing at February 28, 2019.

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

(j)	All or a portion of this investment has an unfunded commitment as of February 28, 2019. (see Note 8 to the consolidated financial statements).

(k)	As of February 28, 2019, the investment was onnon-accrual status. The fair value of these investments was approximately $5.7 million, which represented 1.4% of the Company’s portfolio (see Note 2 to the consolidated financial statements).

(l)	Included within cash and cash equivalents and cash and cash equivalents, reserve accounts in the Company’s consolidated statements of assets and liabilities as of February 28, 2019.

LIBOR - London Interbank Offered Rate

1M USD LIBOR - The 1 month USD LIBOR rate as of February 28, 2019 was 2.49%.

3M USD LIBOR - The 3 month USD LIBOR rate as of February 28, 2019 was 2.62%.

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

~~See accompanying notes to consolidated financial statements.~~

~~Saratoga Investment Corp.~~

~~Consolidated Statements of Changes in Net Assets~~

~~(unaudited)~~

   For the three months ended
   May 31, 2019 May 31, 2018
INCREASE FROM OPERATIONS:

Net investment income
   $ 3,680,788 $ 3,927,648
Net realized gain from investments
   —   212,008
Net change in unrealized appreciation on investments
   3,989,130 643,205
Net change in provision for deferred taxes on unrealized appreciation on investments
   (20,930 ) (940,546 )


Net increase in net assets resulting from operations
   7,648,988 3,842,315


DECREASE FROM SHAREHOLDER DISTRIBUTIONS:

Total distributions to shareholders
   (4,176,132 ) (3,128,513 )


Net decrease in net assets from shareholder distributions
   (4,176,132 ) (3,128,513 )


CAPITAL SHARE TRANSACTIONS:

Proceeds from issuance of common stock
   1,772,634 —
Stock dividend distribution
   667,389 504,878
Offering costs
   (4,365 ) —


Net increase in net assets from capital share transactions
   2,435,658 504,878


Total increase in net assets
   5,908,514 1,218,680
Net assets at beginning of period, as previously reported
   180,875,187 143,691,367
Cumulative effect of the adoption of ASC 606 (See Note 2)
   —   (65,300 )


Net assets at beginning of period, as adjusted
   180,875,187 143,626,067


Net assets at end of period
   $ 186,783,701 $ 144,844,747

See accompanying notes to consolidated financial statements.

Saratoga Investment Corp.

Consolidated Statements of Changes in Net Assets

(unaudited)

   For the six months ended
   August 31, 2019    August 31, 2018
INCREASE FROM OPERATIONS:

Net investment income
   $ 8,636,862    $ 9,071,876
Net realized gain from investments
   1,870,089    212,171
Net change in unrealized appreciation (depreciation) on investments
   5,447,002    (1,511,316 )
Net change in provision for deferred taxes on unrealized appreciation on investments
   (725,193 )    (788,000 )




Net increase in net assets resulting from operations
   15,228,760    6,984,731




DECREASE FROM SHAREHOLDER DISTRIBUTIONS:

Total distributions to shareholders
   (8,512,358 )    (6,332,527 )




Net decrease in net assets from shareholder distributions
   (8,512,358 )    (6,332,527 )




CAPITAL SHARE TRANSACTIONS:

Proceeds from issuance of common stock
   35,875,017    28,750,000
Stock dividend distribution
   1,381,918    1,016,423
Offering costs
   (511,957 )    (1,386,667 )




Net increase in net assets from capital share transactions
   36,744,978    28,379,756




Total increase in net assets
   43,461,380    29,031,960
Net assets at beginning of period, as previously reported
   180,875,187    143,691,367
Cumulative effect of the adoption of ASC 606 (See Note 2)
   —      (65,300 )




Net assets at beginning of period, as adjusted
   180,875,187    143,626,067




Net assets at end of period
   $ 224,336,567    $ 172,658,027




See accompanying notes to consolidated financial statements.

Saratoga Investment Corp.

Consolidated Statements of Cash Flows

(unaudited)


	For the three months ended						For the six months ended
	May 31, 2019			May 31, 2018			August 31, 2019			August 31, 2018
Operating activities
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	7,648,988		$	3,842,315		$	15,228,760		$	6,984,731
ADJUSTMENTS TO RECONCILE NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
ADJUSTMENTS TO RECONCILE NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS TO NET CASH USED IN OPERATING ACTIVITIES:
Payment-in-kind and other adjustments to cost		(2,672,834	)		(758,415	)		(3,077,640	)		(1,604,326	)
Net accretion of discount on investments		(318,260	)		(380,862	)		(480,989	)		(515,149	)
Amortization of deferred debt financing costs		341,688			254,601			681,292			516,653
Net realized (gain) loss from investments		—			(212,008	)
Net deferred income taxes								—			(608,542	)
Net realized gain from investments								(1,870,089	)		(212,171	)
Net change in unrealized (appreciation) depreciation on investments		(3,989,130	)		(643,205	)		(5,447,002	)		1,511,316
Net change in provision for deferred taxes on unrealized appreciation (depreciation) on investments		20,930			940,546
Net change in provision for deferred taxes on unrealized appreciation on investments								725,193			788,000
Proceeds from sales and repayments of investments		26,917,351			36,540,803			45,921,615			37,556,821
Purchases of investments		(27,368,748	)		(35,203,552	)		(119,906,398	)		(86,929,931	)
(Increase) decrease in operating assets:
Interest receivable		(68,898	)		(733,644	)		(1,150,165	)		(1,146,028	)
Due from affiliate		430,550			—			1,673,747			—
Management and incentive fee receivable		262,266			49,099			262,134			61,348
Cumulative effect of the adoption of ASC 606 (See Note 2)		—			(65,300	)		—			(65,300	)
Other assets		45,304			40,331			(82,701	)		(133,505	)
Deferred tax asset		2,136			(267,310	)		(463,789	)		—
Receivable from unsettled trades		—			(159,271	)		—			(67,164	)
Increase (decrease) in operating liabilities:
Base management and incentive fees payable		837,285			173,779			1,948,683			94,139
Accounts payable and accrued expenses		(184,742	)		135,183			(111,576	)		289,641
Interest and debt fees payable		(1,246,177	)		(1,036,724	)		(24,161	)		75,614
Directors fees payable		1,500			43,000			13,000			32,000
Due to manager		22,661			17,589			(16,389	)		49,714

NET CASH PROVIDED BY OPERATING ACTIVITIES		681,870			2,576,955
NET CASH USED IN OPERATING ACTIVITIES								(66,176,475	)		(43,322,139	)

Financing activities
Borrowings on debt								4,200,000			26,840,000
Paydowns on debt								(4,200,000	)		(14,500,000	)
Issuance of notes								—			40,000,000
Payments of deferred debt financing costs		(39,689	)		—			(45,132	)		(1,684,808	)
Proceeds from issuance of common stock		1,772,634			—			35,875,017			28,750,000
Payments of cash dividends		(3,508,743	)		(2,623,635	)		(7,130,440	)		(5,316,104	)
Payments of offering costs		(4,219	)		—			(498,939	)		(1,292,548	)

NET CASH USED IN FINANCING ACTIVITIES		(1,780,017	)		(2,623,635	)
NET CASH PROVIDED BY FINANCING ACTIVITIES								28,200,506			72,796,540

NET DECREASE IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS		(1,098,147	)		(46,680	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS								(37,975,969	)		29,474,401
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD		62,094,394			13,777,491			62,094,394			13,777,491

CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD	$	60,996,247		$	13,730,811		$	24,118,425		$	43,251,892

Supplemental information:
Interest paid during the period	$	4,769,065		$	3,504,914		$	7,074,168		$	4,996,939
Cash paid for taxes		5,761			14,070			16,022			56,562
Supplementalnon-cash information:
Payment-in-kind interest income	$	2,672,834		$	758,415		$	3,077,640		$	1,604,326
Net accretion of discount on investments		318,260			380,862			480,989			515,149
Amortization of deferred debt financing costs		341,688			254,601			681,292			516,653
Stock dividend distribution		667,389			504,878			1,381,918			1,016,423

See accompanying notes to consolidated financial statements.

SARATOGA INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~May~~August 31, 2019

(unaudited)

Note 1. Organization

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

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

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

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

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

The Company has established wholly-owned subsidiaries, SIA-Avionte, Inc., SIA-Easy Ice, LLC, SIA-GH, Inc.,SIA-HT, Inc., ~~SIA-MAC,~~SIA- MAC, Inc.,SIA-TG, Inc., SIA-TT, Inc. andSIA-Vector, Inc., which are structured as Delaware entities, or tax blockers (“Taxable Blockers”), to hold equity or equity-like investments in portfolio companies organized as limited liability companies, or LLCs (or other forms of pass through entities). Tax Blockers are consolidated for accounting purposes, but are not consolidated for income tax purposes and may incur income tax expense as a result of their ownership of portfolio companies.

On March 28, 2012, our wholly-owned subsidiary, Saratoga Investment Corp. SBIC LP (“SBIC LP”), received a Small Business Investment Company (“SBIC”) license from the Small Business Administration (“SBA”).

On ~~September 27, 2018, the SBA issued a “green light” letter inviting us to file a formal license application for a second~~August 14, 2019, our wholly-owned subsidiary, Saratoga Investment Corp. SBIC ~~license. If approved, the additional~~II LP (“SBIC II LP”), also received an SBIC license ~~would~~from the SBA. The new license will provide ~~the Company with an incremental source of long-term capital by permitting us to issue, subject to SBA approval,~~ up to $175.0 million in additional long-term capital in the form of ~~additionalSBA-guaranteed~~ ~~debentures in addition to the $150.0 million already approved under the Company’s first license. Receipt of a green light letter from the~~ SBA does not assure an applicant that the SBA will ultimately issue an SBIC license and the Company has received no assurance or indication from the SBA that it will receive an additional SBIC license, or of the timeframe in which it would receive an additional license, should one ultimately be granted.debentures.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), are stated in U.S. Dollars and include the accounts of the Company and its special purpose financing subsidiaries, Saratoga Investment Funding, LLC (previously known as GSC Investment Funding LLC), SBIC LP, SBIC II LP, SIA-Avionte, Inc.,SIA-Easy Ice, LLC, SIA-GH, Inc.,SIA-HT, Inc.,SIA-MAC, Inc.,SIA-TG, Inc., SIA-TT, Inc. and SIA-Vector, Inc. All intercompany accounts and transactions have been eliminated in consolidation. All references made to the “Company,” “we,” and “us” herein include Saratoga Investment Corp. and its consolidated subsidiaries, except as stated otherwise.

The Company, SBIC LP and SBIC II LP are ~~both~~all considered to be investment companies for financial reporting purposes and have applied the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial ~~Services—~~Services — Investment Companies” (“ASC 946”). There have been no changes to the Company, SBIC LP or SBIC II LP’s status as investment companies during the ~~three~~six months ended ~~May~~August 31, 2019.

Use of Estimates in the Preparation of Financial Statements

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

Cash and Cash Equivalents

Cash and cash equivalents include short-term, liquid investments in a money market fund. Cash and cash equivalents are carried at cost which approximates fair value. Per section 12(d)(1)(A) of the 1940 Act, the Company may not invest in another registered investment company such as, a money market fund if such investment would cause the Company to exceed any of the following limitations:

we were to own more than 3.0% of the total outstanding voting stock of the money market fund;

we were to hold securities in the money market fund having an aggregate value in excess of 5.0% of the value of our total assets, except as allowed pursuant to Rule12d1-1 of Section 12(d)(1) of the 1940 Act which is designed to permit “cash sweep” arrangements rather than investments directly in short-term instruments; or

we were to hold securities in money market funds and other registered investment companies and BDCs having an aggregate value in excess of 10.0% of the value of our total assets.

As of ~~May~~August 31, 2019, the Company did not exceed any of these limitations.

Cash and Cash Equivalents, Reserve Accounts

Cash and cash equivalents, reserve accounts include amounts held in designated bank accounts in the form of cash andshort-term liquid investments in money market funds, representing payments received on secured investments or other reserved amounts associated with the Company’s $45.0 million senior secured revolving credit facility with Madison Capital Funding LLC. The Company is required to use these amounts to pay interest expense, reduce borrowings, or pay other amounts in accordance with the terms of the senior secured revolving credit facility.

In addition, cash and cash equivalents, reserve accounts also include amounts held in designated bank accounts, in the form of cash and short-term liquid investments in money market funds, within our wholly-owned subsidiary, SBIC LP.

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

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


	May 31, 2019		May 31, 2018		August 31, 2019		August 31, 2018
Cash and cash equivalents	$	37,183,604	$	3,313,448	$	2,846,767	$	37,409,160
Cash and cash equivalents, reserve accounts		23,812,643		10,417,363		21,271,658		5,842,732

Total cash and cash equivalents and cash and cash equivalents, reserve accounts	$	60,996,247	$	13,730,811	$	24,118,425	$	43,251,892

Investment Classification

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

Investment Valuation

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

Investments for which market quotations are readily available are fair valued at such market quotations obtained from independentthird-party pricing services and market makers subject to any decision by our board of directors to approve a fair value determination to reflect significant events affecting the value of these investments. We value investments for which market quotations are not readily available at fair value as approved, in good faith, by our board of directors based on input from our Manager, the audit committee of our board of directors and a third party independent valuation firm. Determinations of fair value may involve subjective judgments and estimates. The types of factors that may be considered in determining the fair value of our investments include the nature and realizable value of any collateral, the portfolio company’s ability to make payments, market yield trend analysis, the markets in which the portfolio company does business, comparison to publicly traded companies, discounted cash flow and other relevant factors.

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

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

An independent valuation firm engaged by our board of directors independently reviews a selection of these preliminary valuations each quarter so that the valuation of each investment for which market quotes are not readily available is reviewed by the independent valuation firm at least once each fiscal year.

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

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

Our board of directors discusses the valuations and approves the fair value of each investment, in good faith, based on the input of our Manager, independent valuation firm (to the extent applicable) and the audit committee of our board of directors.

The Company’s investment in Saratoga Investment Corp. CLO2013-1, Ltd. (“Saratoga CLO”) is carried at fair value, which is based on a discounted cash flow model that utilizes prepayment,re-investment and loss assumptions based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and comparable yields for equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by our Manager and recommended to our board of directors. Specifically, we use Intex cash flow models, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The models use a set of assumptions including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The assumptions are based on available market data and projections provided by third parties as well as management estimates. The Company uses the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine a valuation for our investment in Saratoga CLO.

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

Derivative Financial Instruments

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

Investment Transactions and Income Recognition

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

Loans are generally placed onnon-accrual status when there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reserved when a loan is placed onnon-accrual status. Interest

payments received onnon-accrual loans may be recognized as a reduction in principal depending upon management’s judgment regarding collectability.Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection. At ~~May~~August 31, 2019, certain investments in four portfolio companies, including preferred equity interests, were onnon-accrual status with a fair value of approximately ~~$4.9~~$3.9 million, or ~~1.2%~~0.8% of the fair value of our portfolio. At February 28, 2019, certain investments in four portfolio companies, including preferred equity interests, were onnon-accrual status with a fair value of approximately $5.7 million, or 1.4% of the fair value of our portfolio.

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

Adoption of ASC 606

In May 2014, the FASB issued ASU2014-09,Revenue from Contracts with Customers(“ (��ASC 606”), which supersedes the revenue recognition requirements in Revenue Recognition (ASC 605). In May 2016, ASU2016-12 amended ASU2014-09 and deferred the effective period for annual periods beginning after December 15, 2017.

Under the new guidance, the Company recognizes revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Under this standard, revenue is based on a contract with a determinable transaction price and distinct performance obligations with probable collectability. Revenues cannot be recognized until the performance obligation(s) are satisfied and control is transferred to the customer. Management has concluded that the majority of its revenues associated with financial instruments are scoped out of ASC 606, and has concluded that the only significant impact relates to the timing of the recognition of the CLO incentive fee income. The adoption of ASC 606 did not have an impact on the Company’s management fee income or investment income.

The Company adopted ASC 606 to all applicable contracts under the modified retrospective approach using the practical expedient provided for within paragraph606-10-65-1(f)(4); therefore, the presentation of prior year periods has not been adjusted. The Company recognized the cumulative effect of initially adopting ASC 606 as an adjustment to the opening balance of components of equity as of March 1, 2018.

Incentive Fee Income

Incentive fee income is recognized based on the performance of Saratoga CLO during the period, subject to the achievement of minimum return levels in accordance with the terms set out in the investment management agreement between the Company and Saratoga CLO. Incentive fee income is realized in cash on a quarterly basis. Once realized, such fees are no longer subject to reversal.

Upon the adoption of ASC 606, the Company recognizes incentive fee income only when the amount is realized and no longer subject to reversal. Therefore, the Company no longer recognizes unrealized incentive fee income in the consolidated financial statements. The adoption of ASC 606 results in the delayed recognition of unrealized incentive fee income in the consolidated financial statements until it becomes realized at the end of the measurement period and all uncertainties are eliminated, which is typically quarterly.

The Company adopted ASC 606 for incentive fee income using the modified retrospective approach with an effective date of March 1, 2018. The cumulative effect of the adoption resulted in the reversal of $0.07 million of unrealized incentive fee income and is presented as a reduction to the opening balances of components of equity as of March 1, 2018.

In conjunction with the third refinancing and issuance of the Saratoga CLO’s2013-1 Reset CLO Notes ~~(the“2013-1~~(the “2013-1 Reset ~~Reset~~ CLO Notes”) on December 14, 2018, the Company is no longer entitled to receive an incentive management fee from Saratoga CLO. See Note 4 for additional information. Prior to the refinancing, the Company reported ~~$0.2~~$0.1 million and $0.3 million in incentive fees from the Saratoga CLO for the three and six months ended ~~May~~August 31, 2018, respectively, and is reported as incentive fee income on the Company’s consolidated statement of operations.

The following table presents the impact of incentive fees on the consolidated statement of assets and liabilities upon the adoption of ASC 606 effective March 1, 2018:

Consolidated Statement of Assets and Liabilities


	February 28, 2018								February 28, 2018
	As Reported		Adjustments(1)			As Adjusted for Adoption of ASC 606			As Reported		Adjustments⁽¹⁾			As Adjusted for Adoption of ASC 606
Management and incentive fee receivable	$	233,024	$	(65,300	)	$	167,724		$	233,024	$	(65,300	)	$	167,724
Total assets		360,336,361		(65,300	)		360,271,061			360,336,361		(65,300	)		360,271,061
Cumulative effect adjustment for Adoption of ASC 606		—		(65,300	)		(65,300	)		—		(65,300	)		(65,300	)
Total net assets		143,691,367		(65,300	)		143,626,067			143,691,367		(65,300	)		143,626,067
NET ASSET VALUE PER SHARE	$	22.96	$	(0.01	)	$	22.95		$	22.96	$	(0.01	)	$	22.95

⁽¹⁾	Unrealized incentive fees receivable balance as of February 28, 2018.

Without the adoption of ASC 606, there was no impact to either the consolidated statements of assets and liabilities as of ~~May~~August 31, 2019 and February 28, 2019 or the consolidated statement of operations for the three and six months ended ~~May~~August 31, 2019.

For the three and six months ended ~~May~~August 31, 2018, the impact on the consolidated statement of operations without the adoption of ASC 606 is shown in the ~~table~~tables below:

Consolidated Statement of Operations


	For the Three Months Ended May 31, 2018						For the three months ended August 31, 2018							For the six months ended August 31, 2018
	As Reported		Adjustments		Without Adoption of ASC 606		As Reported		Adjustments			Without Adoption of ASC 606		As Reported		Adjustments		Without Adoption of ASC 606
Incentive fee income	$	199,183	$	27,652	$	226,835	$	147,061	$	(22,689	)	$	124,372	$	346,244	$	4,963	$	351,207
Total investment income		10,488,018		27,652		10,515,670		11,402,774		(22,689	)		11,380,085		21,890,792		4,963		21,895,755
NET INVESTMENT INCOME		3,927,648		27,652		3,955,300		5,144,228		(22,689	)		5,121,539		9,071,876		4,963		9,076,839
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		3,842,315		27,652		3,869,967		3,142,416		(22,689	)		3,119,727		6,984,731		4,963		6,989,694
WEIGHTED AVERAGE—BASIC AND DILUTED EARNINGS PER COMMON SHARE	$	0.61	$	0.01	$	0.62
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE							$	0.45	$	—		$	0.45	$	1.06	$	—	$	1.06

Other Income

Other income includes dividends received, origination fees, structuring fees, advisory fees and ~~advisory~~prepayment fees, and is recorded in the consolidated statements of operations when earned.

Payment-in-Kind Interest

The Company holds debt and preferred equity investments in its portfolio that contain apayment-in-kind (“PIK”) interest provision. The PIK interest, which represents contractually deferred interest added to the investment balance that is generally due at maturity, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. ~~We stop~~The Company stops accruing PIK interest if ~~we do not expect~~it is expected that the issuer towill not be able to pay all principal and interest when due.

Deferred Debt Financing Costs

Financing costs incurred in connection with our credit facility and notes are deferred and amortized using the straight-line method over the life of the respective facility and debt securities. Financing costs incurred in connection with our SBA debentures are deferred and amortized using the straight-line method over the life of the debentures.

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

Contingencies

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

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

Income Taxes

The Company has elected to be treated for tax purposes as a RIC under the Code and, among other things, intends to make the requisite distributions to its stockholders which will relieve the Company from federal income taxes. Therefore, no provision has been recorded for federal income taxes, except as related to the Taxable Blockers when applicable.

In order to qualify as a RIC, among other requirements, the Company is required to timely distribute to its stockholders at least 90.0% of its investment company taxable income, as defined by the Code, for each fiscal tax year. The Company will be subject to a nondeductible U.S. federal excise tax of 4.0% on undistributed income if it does not distribute at least 98.0% of its ordinary income in any calendar year and 98.2% of its capital gain net income for eachone-year period ending on October 31.

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

In accordance with certain applicable U.S. Treasury regulations and private letter rulings issued by the Internal Revenue Service (“IRS”), a RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder may elect to receive his or her entire distribution in either cash or stock of the RIC subject to a limitation on the aggregate amount of cash to be distributed to all stockholders, which limitation must be at least 20.0% of the aggregate declared distribution. If too many stockholders elect to receive cash, each stockholder electing to receive cash will receive a pro rata amount of cash (with the balance of the distribution paid in stock). In no event will any stockholder, electing to receive cash, receive less than 20.0% of his or her

entire distribution in cash. If these and certain other requirements are met, for U.S. federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock.

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

FASB ASC Topic 740,Income Taxes, (“ASC 740”), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are“more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet a“more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current period. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the consolidated statements of operations. During the fiscal year ended February 28, 2019, the Company did not incur any interest or penalties. Although we file federal and state tax returns, our major tax jurisdiction is federal. The 2016, 2017 and 2018 federal tax years for the Company remain subject to examination by the IRS. As of ~~May~~August 31, 2019 and February 28, 2019, there were no uncertain tax positions. The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change significantly in the next 12 months.

Dividends

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

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

Capital Gains Incentive Fee

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

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

Regulatory Matters

In August 2018, the SEC issued Final Rule Release No.~~No.33-10532,~~33-10532,Disclosure Update and Simplification, which in part amends certain disclosure requirements of RegulationS-X that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other Commission disclosure requirements, U.S. GAAP or changes in the information environment. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. The effective date for these disclosures was November 5, 2018. Management has adopted these amendments as currently required and these are reflected in the Company’s consolidated financial statements and related disclosures. The presentation of certain prior year information has been adjusted to conform with these amendments.

New Accounting Pronouncements

In August 2018, FASB issued ASU2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement(“ASU2018-13”). The primary focus of ASU2018-13 is to improve the effectiveness of the disclosure requirements for fair value measurements. The changes affect all companies that are required to include fair value measurement disclosures. In general, the amendments in ASU2018-13 are effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. An entity is permitted to early adopt the removed or modified disclosures upon the issuance of ASU2018-13 and may delay adoption of the additional disclosures, which are required for public companies only, until their effective date. Management has assessed these changes and does not believe they would have a material impact on the Company’s consolidated financial statements and disclosures.

~~In March 2017, the FASB issued ASU2017-08,~~~~Receivables—Nonrefundable Fees and Other Costs (Subtopic310-20),~~ ~~Premium Amortization on Purchased Callable Debt Securities~~~~(“ASU2017-08”)~~ ~~which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU2017-08~~ ~~does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU2017-08~~ is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management has assessed these changes and concluded these changes do not have a material impact on the Company’s consolidated financial statements and disclosures.

Risk Management

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

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

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

Note 3. Investments

As noted above, the Company values all investments in accordance with ASC 820. ASC 820 requires enhanced disclosures about assets and liabilities that are measured and reported at fair value. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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

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

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

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

Level 3— Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs may be based on the Company’s own assumptions about how market participants would price the asset or liability or may use Level 2 inputs, as adjusted, to reflect specific investment attributes relative to a broader market assumption. These inputs into the determination of fair value may require significant management judgment or estimation. Even if observable market data for comparable performance or valuation measures (earnings multiples, discount rates, other financial/valuation ratios, etc.) are available, such investments are grouped as Level 3 if any significant data point that is not also market observable (private company earnings, cash flows, etc.) is used in the valuation methodology.

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

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


	Fair Value Measurements								Fair Value Measurements
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
First lien term loans	$	—	$	—	$	219,479	$	219,479	$	—	$	—	$	304,259	$	304,259
Second lien term loans		—		—		109,305		109,305		—		—		100,030		100,030
Unsecured term loans		—		—		2,058		2,058		—		—		2,074		2,074
Structured finance securities		—		—		37,965		37,965		—		—		35,894		35,894
Equity interests		—		—		40,644		40,644		—		—		44,623		44,623

Total	$	—	$	—	$	409,451	$	409,451	$	—	$	—	$	486,880	$	486,880

The following table presents fair value measurements of investments, by major class, as of February 28, 2019 (dollars in thousands), according to the fair value hierarchy:


	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
First lien term loans	$	—	$	—	$	202,846	$	202,846
Second lien term loans		—		—		125,786		125,786
Unsecured term loans		—		—		2,100		2,100
Structured finance securities		—		—		35,328		35,328
Equity interests		—		—		35,960		35,960

Total	$	—	$	—	$	402,020	$	402,020

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


	First lien term loans			Second lien term loans			Unsecured term loans			Structured finance securities		Equity interests		Total			First lien term loans			Second lien term loans			Unsecured term loans			Structured finance securities			Equity interests			Total
Balance as of February 28, 2019	$	202,846		$	125,786		$	2,100		$	35,328	$	35,960	$	402,020		$	202,846		$	125,786		$	2,100		$	35,328		$	35,960		$	402,020
Payment-in-kind and other adjustments to cost		323			1,043			—			1,383		242		2,991			309			1,795			—			2,040			(1,066	)		3,078
Net accretion of discount on investments																		257			224			—			—			—			481
Net change in unrealized appreciation (depreciation) on investments		(217	)		476			(42	)		1,254		2,517		3,988			(175	)		225			(26	)		(1,474	)		6,897			5,447
Purchases		25,444			—			—			—		1,925		27,369			116,631			—			—			—			3,275			119,906
Sales and repayments		(8,917	)		(18,000	)		—			—		—		(26,917	)		(15,669	)		(28,000	)		—			—			(2,253	)		(45,922	)
Net realized gain (loss) from investments		—			—			—			—		—		—			60			—			—			—			1,810			1,870

Balance as of May 31, 2019	$	219,479		$	109,305		$	2,058		$	37,965	$	40,644	$	409,451
Balance as of August 31, 2019																	$	304,259		$	100,030		$	2,074		$	35,894		$	44,623		$	486,880

Net change in unrealized appreciation (depreciation) for the period relating to those Level 3 assets that were still held by the Company at the end of the period	$	(217	)	$	468		$	(42	)	$	1,254	$	2,517	$	3,980		$	(175	)	$	71		$	(26	)	$	(1,473	)	$	3,726		$	2,123

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

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

Transfers and restructurings, if any, are recognized at the beginning of the period in which they occur. There were no restructures in or out of Levels 1, 2 or 3 during the ~~three~~six months ended ~~May~~August 31, 2019.


	Syndicated loans			First lien term loans			Second lien term loans			Unsecured term loans			Structured finance securities			Equity interests		Total			Syndicated loans			First lien term loans			Second lien term loans			Unsecured term loans			Structured finance securities			Equity interests			Total
Balance as of February 28, 2018	$	4,106		$	197,359		$	95,075		$	—		$	16,374		$	29,780	$	342,694		$	4,106		$	197,359		$	95,075		$	—		$	16,374		$	29,780		$	342,694
Payment-in-kind and other adjustments to cost		73			271			531			—			—			265		1,140			—			295			817			—			—			492			1,604
Net accretion of discount on investments																						73			283			159			—			—			—			515
Net change in unrealized appreciation (depreciation) on investments		(73	)		(22	)		(186	)		(66	)		130			860		643			(73	)		(619	)		(659	)		(77	)		281			(364	)		(1,511	)
Purchases		—			16,335			15,653			2,216			—			999		35,203			—			49,760			18,910			12,216			245			5,799			86,930
Sales and repayments		(4,106	)		(18,387	)		(14,000	)		—			(48	)		—		(36,541	)		(4,106	)		(19,403	)		(14,000	)		—			(48	)		—			(37,557	)
Net realized gain from investments		—			212			—			—			—			—		212			—			212			—			—			—			—			212
Restructures in		—			—			—			—			—			—		—
Restructures out		—			—			—			—			—			—		—

Balance as of May 31, 2018	$	—		$	195,768		$	97,073		$	2,150		$	16,456		$	31,904	$	343,351
Balance as of August 31, 2018																					$	—		$	227,887		$	100,302		$	12,139		$	16,852		$	35,707		$	392,887

Net change in unrealized appreciation (depreciation) for the period relating to those Level 3 assets that were still held by the Company at the end of the period	$	—		$	(167	)	$	(93	)	$	(66	)	$	130		$	860	$	664		$	—		$	(765	)	$	(568	)	$	(77	)	$	281		$	(364	)	$	(1,493	)

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of ~~May~~August 31, 2019 were as follows (dollars in thousands):

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted Average*

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted Average*

First lien term loans

219,479

Market Comparables

Market Yield (%)

8.5% - 13.0%

10.8%

304,259

Market Comparables

Market Yield (%)

8.4% - 13.0%

10.5%

EBITDA Multiples (x)

3.0x

EBITDA Multiples (x)

3.0x

Second lien term loans

109,305

Market Comparables

Market Yield (%)

10.5% - 47.5%

12.7%

100,030

Market Comparables

Market Yield (%)

10.1% - 73.8%

12.7%

EBITDA Multiples (x)

5.0x

EBITDA Multiples (x)

5.0x

Unsecured term loans

2,058

Market Comparables

Market Yield (%)

19.2%- 19.2%

19.2%

2,074

Market Comparables

Market Yield (%)

19.8%

EBITDA Multiples (x)

4.8x

EBITDA Multiples (x)

5.2x

Structured finance securities

37,965

Discounted Cash Flow

Discount Rate (%)

9.0% - 15.0%

13.7%

35,894

Discounted Cash Flow

Discount Rate (%)

9.25% - 17.0%

15.1%

Recovery Rate (%)

70.0%

Prepayment Rate (%)

20.0%

Equity interests

40,644

Market Comparables

EBITDA Multiples (x)

4.0x - 14.0x

7.3x

44,623

Market Comparables

EBITDA Multiples (x)

4.0x - 14.0x

7.2x

Revenue Multiples (x)

0.6x - 39.5x

8.2x

Revenue Multiples (x)

0.7x - 38.4x

7.2x

Total

409,451

486,880

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

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of February 28, 2019 were as follows (dollars in thousands):

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted Average*

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted Average*

First lien term loans

202,846

Market Comparables

Market Yield (%)

8.6% - 13.2%

11.0%

202,846

Market Comparables

Market Yield (%)

8.6% - 13.2%

11.0%

EBITDA Multiples (x)

3.0x

EBITDA Multiples (x)

3.0x

Second lien term loans

125,786

Market Comparables

Market Yield (%)

10.5% - 41.1%

12.8%

125,786

Market Comparables

Market Yield (%)

10.5% - 41.1%

12.8%

EBITDA Multiples (x)

5.0x

EBITDA Multiples (x)

5.0x

Unsecured term loans

2,100

Market Comparables

Market Yield (%)

15.00%

15.0%

2,100

Market Comparables

Market Yield (%)

15.00%

15.0%

EBITDA Multiples (x)

4.8x

EBITDA Multiples (x)

4.8x

Structured finance securities

35,328

Discounted Cash Flow

Discount Rate (%)

9.0%- 15.0%

13.6%

35,328

Discounted Cash Flow

Discount Rate (%)

9.0% - 15.0%

13.6%

Recovery Rate (%)

70.0%

Prepayment Rate (%)

20.0%

Equity interests

35,960

Market Comparables

EBITDA Multiples (x)

4.0x - 14.7x

6.7x

35,960

Market Comparables

EBITDA Multiples (x)

4.0x - 14.7x

6.7x

Revenue Multiples (x)

0.6x - 39.6x

10.1x

Revenue Multiples (x)

0.6x - 39.6x

10.1x

Total

402,020

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

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

The composition of our investments as of ~~May~~August 31, 2019 at amortized cost and fair value was as follows (dollars in thousands):


	Investments at Amortized Cost		Amortized Cost Percentage of Total Portfolio			Investments at Fair Value		Fair Value Percentage of Total Portfolio			Investments at Amortized Cost		Amortized Cost Percentage of Total Portfolio			Investments at Fair Value		Fair Value Percentage of Total Portfolio
First lien term loans	$	219,178		54.1	%	$	219,479		53.6	%	$	303,917		63.1	%	$	304,259		62.5	%
Second lien term loans		110,836		27.3			109,305		26.7			101,812		21.1			100,030		20.5
Unsecured term loans		2,217		0.6			2,058		0.5			2,217		0.5			2,074		0.4
Structured finance securities		34,899		8.6			37,965		9.3			35,556		7.4			35,894		7.4
Equity interests		38,229		9.4			40,644		9.9			37,828		7.9			44,623		9.2

Total	$	405,359		100.0	%	$	409,451		100.0	%	$	481,330		100.0	%	$	486,880		100.0	%

The composition of our investments as of February 28, 2019 at amortized cost and fair value was as follows (dollars in thousands):

   Investments at
Amortized Cost    Amortized Cost
Percentage of Total
Portfolio Investments at
Fair Value    Fair Value
Percentage of Total
Portfolio
First lien term loans
   $ 202,328    50.3 % $ 202,846    50.5 %
Second lien term loans
   127,793    31.8 125,786    31.3
Unsecured term loans
   2,217    0.6 2,100    0.5
Structured finance securities
   33,516    8.3 35,328    8.8
Equity interests
   36,062    9.0 35,960    8.9






Total
   $ 401,916    100.0 % $ 402,020    100.0 %






For loans and debt securities for which market quotations are not available, we determine their fair value based on third party indicative broker quotes, where available, or the assumptions that a hypothetical market participant would use to value the security in a current hypothetical sale using a market yield valuation methodology. In applying the market yield valuation methodology, we determine the fair value based on such factors as market participant assumptions including synthetic credit ratings, estimated remaining life, current market yield and interest rate spreads of similar securities as of the measurement date. If, in our judgment, the market yield methodology is not sufficient or appropriate, we may use additional methodologies such as an asset liquidation or expected recovery model.
For equity securities of portfolio companies and partnership interests, we determine the fair value based on the market approach with value then attributed to equity or equity like securities using the enterprise value waterfall valuation methodology. Under the enterprise value waterfall valuation methodology, we determine the enterprise fair value of the portfolio company and then waterfall the enterprise value over the portfolio company’s securities in order of their preference relative to one another. To estimate the enterprise value of the portfolio company, we weigh some or all of the traditional market valuation methods and factors based on the individual circumstances of the portfolio company in order to estimate the enterprise value. The methodologies for performing investments may be based on, among other things: valuations of comparable public companies, recent sales of private and public comparable companies, discounting the forecasted cash flows of the portfolio company, third party valuations of the portfolio company, considering offers from third parties to buy the company, estimating the value to potential strategic buyers and considering the value of recent investments in the equity securities of the portfolio company. Fornon-performing investments, we may estimate the liquidation or collateral value of the portfolio company’s assets and liabilities. We also take into account historical and anticipated financial results.
Our investment in Saratoga CLO is carried at fair value, which is based on a discounted cash flow model that utilizes prepayment,re-investment and loss assumptions based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and comparable yields for equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by our Manager and recommended to our board of directors. Specifically, we use Intex cash flow models, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The models use a set of assumptions including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The assumptions are based on available market data and projections provided by third parties as well as management estimates. In connection with the refinancing of the Saratoga CLO liabilities, we ran Intex models based on assumptions about the refinanced Saratoga CLO’s structure, including capital structure, cost of liabilities and reinvestment period. We use the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine a valuation for our investment in Saratoga CLO at ~~May~~August 31, 2019. The ~~significant~~ inputs at ~~May~~August 31, 2019 for the valuation model include:

Default rate: 2.0%

Recovery rate:35-70%

Discount rate: ~~15.0%~~17.0%

Prepayment rate: 20.0%

Reinvestment rate / price: L+~~375bps~~370bps / $99.50
Note 4. Investment in Saratoga Investment Corp. CLO2013-1, Ltd. (“Saratoga CLO”)
On January 22, 2008, the Company entered into a collateral management agreement with Saratoga CLO, pursuant to which the Company acts as its collateral manager. The Saratoga CLO was initially refinanced in October 2013 with its reinvestment period extended to October 2016. On November 15, 2016, the Company completed a second refinancing of the Saratoga CLO with its reinvestment period extended to October 2018.

On August 7, 2018, the Company entered into an unsecured loan agreement (“(“CLO2013-1 Warehouse ~~Warehouse~~ Loan”) with Saratoga Investment Corp.CLO2013-1 Warehouse, ~~Warehouse,~~ Ltd (“(“CLO2013-1 Warehouse”), a wholly-owned subsidiary of Saratoga CLO, pursuant to whichCLO2013-1 Warehouse ~~Warehouse~~ may borrow from time to time up to $20 million from the Company in order to provide capital necessary to support warehouse activities. TheCLO2013-1 Warehouse ~~Warehouse~~ Loan, which expires on February 7, 2020, bears interest at an annual rate of 3M USD LIBOR + 7.5%. Interest accrued on the investment in theCLO2013-1 Warehouse ~~Warehouse~~ Loan is included in interest income on the Company’s consolidated statement of operations. During the year ended February 28, 2019, the maximum amount invested by the Company in theCLO2013-1 Warehouse ~~Warehouse~~ Loan amounted to $20.0 million.

On December 14, 2018, the Company completed a third refinancing and upsize of the Saratoga CLO (the“2013-1 Reset CLO Notes”). The third Saratoga CLO refinancing, among other things, extended its reinvestment period to January 2021, and extended its legal maturity date to January 2030. Anon-call period ending January 2020 was also added. Following this refinancing, the Saratoga CLO portfolio increased from approximately $300.0 million in aggregate principal amount to approximately $500.0 million of predominantly senior secured first lien term loans. In addition to refinancing its liabilities, the Company invested an additional $13.8 million in all of the newly issued subordinated notes of the Saratoga CLO and also purchased $2.5 million in aggregate principal amount of theClass F-R-2 and $7.5 million aggregate principal amount of theClass G-R-2 notes tranches at par, with a coupon of LIBOR plus 8.75% and LIBOR plus 10.00%, respectively. As part of this refinancing, the Company also redeemed our existing $4.5 million aggregate amount of the Class F notes tranche at par.

The Saratoga CLO remains 100.0% owned and managed by the Company. We receive a base management fee of 0.10% per annum and a subordinated management fee of 0.40% per annum of the outstanding principal amount of Saratoga CLO’s assets, paid quarterly to the extent of available proceeds. Following the third refinancing and the issuance of the2013-1 Reset CLO Notes on December 14, 2018, we are no longer entitled to an incentive management fee equal to 20.0% of excess cash flow to the extent the Saratoga CLO subordinated notes receive an internal rate of return paid in cash equal to or greater than 12.0%.

For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, we accrued management fee income of $0.6 million and $0.4 million, respectively, and interest income of $1.1 million and ~~$0.8~~$0.7 million, respectively, from the Saratoga CLO. For the three months ended ~~May~~August 31, 2018, we accrued ~~$0.2~~$0.1 million related to the incentive management fee from Saratoga CLO.

For the six months ended August 31, 2019 and August 31, 2018, we accrued management fee income of $1.3 million and $0.7 million, respectively, and interest income of $2.2 million and $1.5 million, respectively, from the Saratoga CLO. For the six months ended August 31, 2018, we accrued $0.3 million related to the incentive management fee from Saratoga CLO.

As of ~~May~~August 31, 2019, the Company determined that the fair value of its investment in the subordinated notes of Saratoga CLO was ~~$28.0~~$26.0 million. The Company determines the fair value of its investment in the subordinated notes of Saratoga CLO based on the present value of the projected future cash flows of the subordinated notes over the life of Saratoga CLO. As of ~~May~~August 31, 2019, the fair value of its investment in theClass F-R-2 Notes andG-R-2 Notes of Saratoga CLO was $2.5 million and ~~$7.5~~$7.4 million, respectively. As of ~~May~~August 31, 2019, Saratoga CLO had investments with a principal balance of ~~$513.4~~$505.8 million and a weighted average spread over LIBOR of ~~4.0%~~4.1% and had debt with a principal balance of $470.0 million with a weighted average spread over LIBOR of 2.0%. As a result, Saratoga CLO earns a “spread” between the interest income it receives on its investments and the interest expense it pays on its debt and other operating expenses, which is distributed quarterly to the Company as the holder of its subordinated notes. As of ~~May~~August 31, 2019, the present value of the projected future cash flows of the subordinated notes was approximately ~~$28.6~~$26.5 million, using a ~~15.0%~~17.0% discount rate. The Company’s total investment in the subordinate notes of Saratoga CLO is $43.8 million, which is comprised of the initial investment of $30.0 million in January 2008 plus the additional investment of $13.8 million in December 2018, and to date the Company has since received distributions of ~~$55.9~~$56.4 million, management fees of ~~$20.2~~$20.9 million and incentive fees of $1.2 million. In conjunction with the third refinancing of the 2013-1 Reset CLO Notes on December 14, 2018, the Company is no longer entitled to receive an incentive management fee from Saratoga CLO.

As of February 28, 2019, the Company determined that the fair value of its investment in the subordinated notes of Saratoga CLO was $25.4 million. The Company determines the fair value of its investment in the subordinated notes of Saratoga CLO based on the present value of the projected future cash flows of the

subordinated notes over the life of Saratoga CLO. As of February 28, 2019, the fair value of its investment in theClass F-R-2 Notes andG-R-2 Notes of Saratoga CLO was $2.5 million and $7.5 million, respectively. As of February 28, 2019, Saratoga CLO had investments with a principal balance of $510.3 million and a weighted average spread over LIBOR of 4.0% and had debt with a principal balance of $470.0 million with a weighted average spread over LIBOR of 2.3%. As of February 28, 2019, the present value of the projected future cash flows of the subordinated notes was approximately $26.6 million, using a 15.0% discount rate.

Below is certain financial information from the separate financial statements of Saratoga CLO as of ~~May~~August 31, 2019 (unaudited) and February 28, 2019 and for the three and six months ended ~~May~~August 31, 2019 (unaudited) and ~~May~~August 31, 2018 (unaudited).

Saratoga Investment Corp. CLO2013-1, Ltd.

Statements of Assets and Liabilities


	May 31, 2019			February 28, 2019			August 31, 2019			February 28, 2019
	(unaudited)						(unaudited)
ASSETS
Investments at fair value
Loans at fair value (amortized cost of $508,645,633 and $506,145,483, respectively)	$	497,734,598		$	498,389,369
Loans at fair value (amortized cost of $500,997,086 and $506,145,483, respectively)							$	487,911,991		$	498,389,369
Equities at fair value (amortized cost of $2,566,752 and $3,531,218, respectively)		151			15,691			151			15,691

Total investments at fair value (amortized cost of $511,212,385 and $509,676,701, respectively)		497,734,749			498,405,060
Total investments at fair value (amortized cost of $503,563,838 and $509,676,701, respectively)								487,912,142			498,405,060
Cash and cash equivalents		8,579,399			18,495,653			7,669,413			18,495,653
Receivable from open trades		1,204,614			7,855,309			6,375,641			7,855,309
Interest receivable (net of reserve of $291,580 and $168,443, respectively)		1,886,128			2,104,495
Interest receivable (net of reserve of $379,017 and $168,443, respectively)								2,140,276			2,104,495

Total assets	$	509,404,890		$	526,860,517		$	504,097,472		$	526,860,517

LIABILITIES
Interest payable	$	2,461,179		$	4,963,472		$	2,363,001		$	4,963,472
Payable from open trades		14,504,906			26,232,247			12,394,738			26,232,247
Accrued base management fee		55,966			108,419			55,992			108,419
Accrued subordinated management fee		223,862			433,675			223,968			433,675
Due to affiliate		1,243,197			1,673,747			—			1,673,747
Accounts payable and accrued expenses		23,136			1,221,110			95,650			1,221,110
Saratoga Investment Corp. CLO2013-1, Ltd. Notes:
Class A-1FL-R-2 Senior Secured Floating Rate Notes		255,000,000			255,000,000			255,000,000			255,000,000
Class A-1FXD-R-2 Senior Secured Fixed Rate Notes		25,000,000			25,000,000			25,000,000			25,000,000
Class-A-2-R-2 Senior Secured Floating Rate Notes		40,000,000			40,000,000			40,000,000			40,000,000
Class B-R-2 Senior Secured Floating Rate Notes		59,500,000			59,500,000			59,500,000			59,500,000
Class C-R-2 Deferrable Mezzanine Floating Rate Notes		22,500,000			22,500,000			22,500,000			22,500,000
Discount onClass C-R-2 Notes		(571,332	)		(585,059	)		(557,604	)		(585,059	)
Class D-R-2 Deferrable Mezzanine Floating Rate Notes		31,000,000			31,000,000			31,000,000			31,000,000
Discount onClass D-R-2 Notes		(1,039,656	)		(1,064,636	)		(1,014,676	)		(1,064,636	)
Class E-1-R-2 Deferrable Mezzanine Floating Rate Notes		27,000,000			27,000,000			27,000,000			27,000,000
Class E-2-R-2 Deferrable Mezzanine Fixed Rate Notes		—			—			—			—
Class F-R-2 Deferrable Junior Floating Rate Notes		2,500,000			2,500,000			2,500,000			2,500,000
Class G-R-2 Deferrable Junior Floating Rate Notes		7,500,000			7,500,000			7,500,000			7,500,000
Deferred debt financing costs		(2,408,435	)		(2,465,897	)		(2,351,840	)		(2,465,897	)
Subordinated Notes		69,500,000			69,500,000			69,500,000			69,500,000
Discount on Subordinated Notes		(24,664,279	)		(25,256,892	)		(24,071,667	)		(25,256,892	)

Total liabilities	$	529,328,544		$	544,760,186		$	526,637,562		$	544,760,186

NET ASSETS
Ordinary equity, par value $1.00, 250 ordinary shares authorized, 250 and 250 issued and outstanding, respectively	$	250		$	250		$	250		$	250
Total distributable earnings (loss)		(19,923,904	)		(17,899,919	)		(22,540,340	)		(17,899,919	)

Total net assets (deficit)		(19,923,654	)		(17,899,669	)		(22,540,090	)		(17,899,669	)

Total liabilities and net assets	$	509,404,890		$	526,860,517		$	504,097,472		$	526,860,517

Saratoga Investment Corp. CLO2013-1, Ltd.

Statements of Operations

(unaudited)


	For the three months ended						For the three months ended						For the six months ended
	May 31, 2019			May 31, 2018			August 31, 2019			August 31, 2018			August 31, 2019			August 31, 2018
INVESTMENT INCOME
Interest from investments	$	8,203,707		$	5,032,427		$	8,304,492		$	4,856,814		$	16,508,199		$	9,889,239
Interest from cash and cash equivalents		7,363			4,015			26,440			4,074			33,803			8,089
Other income		140,123			142,957			40,845			30,214			180,968			173,171

Total investment income		8,351,193			5,179,399			8,371,777			4,891,102			16,722,970			10,070,499

EXPENSES
Interest and debt financing expenses		6,418,808			3,994,176			6,748,508			4,106,438			13,167,316			8,100,614
Base management fee		125,903			77,039			125,949			72,792			251,852			149,831
Subordinated management fee		503,613			308,155			503,796			291,170			1,007,409			599,325
Incentive fees		—			226,835			—			124,372			—			351,207
Professional fees		124,508			25,888			88,204			87,558			212,712			113,446
Trustee expenses		19,879			45,468			118,136			15,228			138,015			60,696
Miscellaneous fee expense		32,538			27,389			11,196			2,418			43,734			29,807

Total expenses		7,225,249			4,704,950			7,595,789			4,699,976			14,821,038			9,404,926

NET INVESTMENT INCOME		1,125,944			474,449			775,988			191,126			1,901,932			665,573

REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments		(943,934	)		(1,157,929	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments								(1,218,364	)		2,237			(2,162,298	)		(1,155,692	)
Net change in unrealized depreciation on investments		(2,205,995	)		(110,177	)		(2,174,060	)		(440,254	)		(4,380,055	)		(550,429	)

Net realized and unrealized loss on investments		(3,149,929	)		(1,268,106	)		(3,392,424	)		(438,017	)		(6,542,353	)		(1,706,121	)

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(2,023,985	)	$	(793,657	)	$	(2,616,436	)	$	(246,891	)	$	(4,640,421	)	$	(1,040,548	)

Saratoga Investment Corp. CLO2013-1, Ltd.

Schedule of Investments

~~May~~August 31, 2019

(unaudited)

Issuer Name

Industry

Asset Name
Asset
Type Reference Rate/Spread LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number of
Shares Cost Fair Value
Education Management II LLC
Services: Consumer Education Management IIA-1 Preferred Shares Equity —   6,692 $ 669,214 $ 134
Education Management II LLC
Services: Consumer Education Management IIA-2 Preferred Shares Equity —   18,975 1,897,538 17
24 Hour Fitness Worldwide Inc.
Services: Consumer Term Loan (5/18) Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.59 % 5/30/2025 $ 2,974,975 2,964,144 2,885,726
ABBCon-Cise Optical Group LLC
Consumer goods:Non-durable Term Loan B Loan 6M USD LIBOR+ 5.00 % 1.00 % 7.04 % 6/15/2023 2,092,686 2,070,089 1,935,734
Acosta Inc.
Media: Advertising Printing & Publishing Term Loan B (1st Lien) Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.34 % 9/27/2021 1,905,425 1,900,195 650,226
ADMI Corp.
Services: Consumer Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 4.84 % 4/30/2025 1,980,000 1,971,574 1,950,300
Advantage Sales & Marketing Inc.
Services: Business First Lien Term Loan Loan 3M USD LIBOR+ 3.25 % 1.00 % 5.39 % 7/23/2021 2,383,643 2,382,376 2,220,960
Advantage Sales & Marketing Inc.
Services: Business Term Loan B Incremental Loan 3M USD LIBOR+ 3.25 % 1.00 % 5.39 % 7/23/2021 492,462 486,664 454,119
Aegis Toxicology Sciences
Corporation
Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 7.64 % 5/9/2025 3,970,000 3,937,022 3,776,463
Agiliti Health Inc.
Healthcare & Pharmaceuticals Term Loan (1/19) Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.09 % 1/5/2026 498,750 498,750 499,373
Agrofresh Inc.
Beverage Food & Tobacco Term Loan Loan 6M USD LIBOR+ 4.75 % 1.00 % 6.79 % 7/30/2021 2,904,615 2,901,243 2,744,862
AI Mistral (Luxembourg)
Subco Sarl
High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.09 % 3/11/2024 488,750 488,750 411,528
AIS Holdco LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.00 % 7.14 % 8/15/2025 2,453,125 2,442,234 2,281,406
Akorn Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 6.25 % 1.00 % 8.34 % 4/16/2021 399,011 398,542 367,688
Albertson’s LLC
Retail Term Loan B7 (08/19) Loan 1M USD LIBOR+ 2.75 % 0.75 % 4.84 % 11/17/2025 3,113,633 3,098,737 3,124,157
Alchemy US Holdco 1 LLC
Metals & Mining Term Loan Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.59 % 10/10/2025 1,975,000 1,948,287 1,950,312
Alera Group Intermediate
Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.59 % 8/1/2025 496,250 495,156 495,942
Alion Science and Technology Corporation
Aerospace & Defense Term Loan B (1st Lien) Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.59 % 8/19/2021 3,626,521 3,621,312 3,624,273
Allen Media LLC
Media: Diversified & Production Term Loan B Loan 4M USD LIBOR+ 6.50 % 1.00 % 7.50 % 8/30/2023 2,924,096 2,863,269 2,836,374
Altisource S.a r.l.
Banking Finance Insurance & Real Estate Term Loan B (03/18) Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.14 % 4/3/2024 1,454,873 1,446,552 1,403,952
Altra Industrial Motion Corp.
Capital Equipment Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.09 % 10/1/2025 1,850,745 1,846,584 1,842,269
American Dental Partners Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+ 4.25 % 1.00 % 6.39 % 3/24/2023 995,000 985,849 982,563
American Greetings Corporation
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.59 % 4/5/2024 4,957,349 4,954,568 4,916,055
American Residential Services LLC
Services: Consumer Term Loan B Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.09 % 6/30/2022 3,946,325 3,935,116 3,847,667
Amynta Agency Borrower Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.59 % 2/28/2025 3,479,929 3,440,298 3,314,632
Anastasia Parent LLC
Consumer goods:Non-durable Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 5.84 % 8/11/2025 992,500 988,153 714,600
Anchor Glass
Container Corporation
Containers Packaging & Glass Term Loan (07/17) Loan 1M USD LIBOR+ 2.75 % 1.00 % 4.84 % 12/7/2023 487,550 485,936 422,647
Arctic Glacier U.S.A. Inc.
Beverage Food & Tobacco Term Loan (3/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.59 % 3/20/2024 3,350,967 3,330,876 3,275,570
Aretec Group Inc.
Banking Finance Insurance & Real Estate Term Loan (10/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.34 % 10/1/2025 1,990,000 1,985,589 1,935,275
ASG Technologies Group Inc.
High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.59 % 7/31/2024 491,269 489,407 487,584
AssetMark Financial Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 3M USD LIBOR+ 3.25 % 0.00 % 5.39 % 11/14/2025 1,237,500 1,235,491 1,236,473
Astoria Energy LLC
Energy: Electricity Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.09 % 12/24/2021 1,398,888 1,391,776 1,396,553
Asurion LLC
Banking Finance Insurance & Real Estate Term LoanB-4 (Replacement) Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.09 % 8/4/2022 2,049,404 2,043,008 2,049,772
Asurion LLC
Banking Finance Insurance & Real Estate Term Loan B6 Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.09 % 11/3/2023 495,364 492,032 495,453
Athenahealth Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+ 4.50 % 0.00 % 6.64 % 2/11/2026 1,995,000 1,957,484 1,983,788
Avaya Inc.
Telecommunications Term Loan B Loan 2M USD LIBOR+ 4.25 % 0.00 % 6.40 % 12/16/2024 3,479,949 3,443,148 3,408,611
Avison Young
(Canada) Inc.
Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.00 % 7.14 % 1/30/2026 1,990,000 1,952,058 1,945,225
Ball Metalpack
Finco LLC
Containers Packaging & Glass Term Loan Loan 3M USD LIBOR+ 4.50 % 0.00 % 6.64 % 7/31/2025 3,964,962 3,947,457 3,836,101
Bausch Health Companies Inc.
Healthcare & Pharmaceuticals Term Loan B (05/18) Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.09 % 6/2/2025 1,642,852 1,636,480 1,643,985
Berry Global
Group Inc.
Chemicals Plastics & Rubber Term Loan U Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.59 % 7/1/2026 5,000,000 4,987,553 4,998,850
Blount International
Inc.

Forest Products &
Paper
Term Loan B (09/18) Loan 6M USD LIBOR+ 3.75 % 1.00 % 5.79 % 4/12/2023 3,471,269 3,468,195 3,466,930
Blucora Inc.
Services: Consumer Term Loan (11/17) Loan 2M USD LIBOR+ 3.00 % 1.00 % 5.15 % 5/22/2024 956,667 953,057 955,873
Bombardier Recreational Products Inc.
Consumer goods: Durable Incremental Term Loan B2 Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.59 % 5/23/2025 1,000,000 990,089 998,440
Boxer Parent Company Inc.
Services: Business Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.39 % 10/2/2025 2,487,500 2,465,536 2,349,344
Bracket Intermediate Holding Corp.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.34 % 9/5/2025 992,500 988,129 987,538
Broadstreet Partners Inc.
Banking Finance Insurance & Real Estate Term Loan B2 Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.34 % 11/8/2023 1,029,895 1,027,916 1,026,919
Brookfield WEC Holdings Inc.
Energy: Electricity Term Loan Loan 1M USD LIBOR+ 3.50 % 0.75 % 5.59 % 8/1/2025 500,000 498,750 500,180
Cable & Wireless Communications Limited
Telecommunications Term Loan B4 Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.34 % 1/30/2026 2,186,667 2,184,433 2,191,215
Calceus Acquisition Inc.
Consumer goods:Non-durable Term Loan B Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.59 % 2/12/2025 987,500 975,964 985,653
Callaway Golf Company
Retail Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.59 % 1/2/2026 701,250 687,564 709,721
Canyon Valor Companies Inc.
Media: Advertising Printing & Publishing Term Loan B Loan 3M USD LIBOR+ 2.75 % 0.00 % 4.89 % 6/16/2023 934,191 931,895 929,912
Capital Automotive L.P.
Banking Finance Insurance & Real Estate First Lien Term Loan Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.59 % 3/25/2024 340,410 339,219 339,559
CareerBuilder LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 6.75 % 0.00 % 8.89 % 7/31/2023 2,266,211 2,228,289 2,252,048
CareStream Health Inc.
High Tech Industries Term Loan Loan 1M USD LIBOR+ 5.75 % 1.00 % 7.84 % 2/28/2021 2,371,293 2,362,900 2,255,693
Casa Systems Inc.
Telecommunications Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.14 % 12/20/2023 1,462,500 1,452,719 1,367,438
CCS-CMGC Holdings Inc.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.59 % 10/1/2025 2,487,500 2,464,857 2,447,078
Cengage Learning Inc.
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.34 % 6/7/2023 1,454,958 1,441,146 1,390,314
CenturyLink Inc.
Telecommunications Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 4.84 % 1/31/2025 3,949,950 3,928,364 3,892,359
Charter Communications Operating LLC.
Media: Broadcasting & Subscription Term Loan (12/17) Loan 3M USD LIBOR+ 2.00 % 0.00 % 4.14 % 4/30/2025 1,576,000 1,574,361 1,579,231
Citadel Securities LP
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.59 % 2/27/2026 997,500 996,265 997,500
Compass Power Generation L.L.C.
Utilities: Electric Term Loan B (08/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.59 % 12/20/2024 1,943,026 1,938,237 1,944,970
Compuware Corporation
High Tech Industries Term Loan (08/18) Loan 1M USD LIBOR+ 4.00 % 0.00 % 6.09 % 8/22/2025 497,500 496,395 498,535
Concordia International Corp.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 5.50 % 1.00 % 7.59 % 9/6/2024 1,195,790 1,138,418 1,135,809
Consolidated Aerospace Manufacturing LLC
Aerospace & Defense Term Loan (1st Lien) Loan 1M USD LIBOR+ 3.75 % 1.00 % 5.84 % 8/11/2022 2,418,750 2,413,003 2,409,680
Consolidated Communications Inc.
Telecommunications Term Loan B Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.09 % 10/5/2023 1,482,989 1,471,194 1,418,108
Covia Holdings Corporation
Metals & Mining Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.14 % 6/2/2025 990,000 990,000 812,899
CPI Acquisition Inc
Banking Finance Insurance & Real Estate Term Loan B (1st Lien) Loan 3M USD LIBOR+ 4.50 % 1.00 % 6.64 % 8/17/2022 1,436,782 1,426,338 1,120,388
Crown Subsea Communications Holding Inc
Construction & Building Term Loan Loan 1M USD LIBOR+ 6.00% 0.00 % 8.09 % 11/3/2025 3,465,432 3,430,108 3,461,100
CSC Holdings LLC
Media: Broadcasting & Subscription Term Loan B (03/17) Loan 1M USD LIBOR+ 2.25% 0.00 % 4.34 % 7/17/2025 1,984,772 1,960,549 1,974,014
CSC Holdings LLC
Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 2.25% 0.00 % 4.34 % 1/15/2026 497,500 496,363 494,600
CT Technologies Intermediate Hldgs Inc
Healthcare & Pharmaceuticals New Term Loan Loan 1M USD LIBOR+ 4.25% 1.00 % 6.34 % 12/1/2021 1,432,800 1,427,146 1,271,094
Cumulus Media New Holdings Inc.
Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 4.50% 1.00 % 6.59 % 5/13/2022 152,704 151,605 153,086
Daseke Companies Inc.
Transportation: Cargo Replacement Term Loan Loan 1M USD LIBOR+ 5.00% 1.00 % 7.09 % 2/27/2024 1,965,672 1,955,988 1,906,702
DaVita Inc.
High Tech Industries Term Loan B Loan 3M USD LIBOR+ 2.25% 0.00 % 4.39 % 8/12/2026 1,000,000 997,500 1,000,530
Dealer Tire LLC
Automotive Term Loan B Loan 1M USD LIBOR+ 5.50% 0.00 % 7.59 % 12/12/2025 2,992,500 2,884,710 3,003,722
Delek US Holdings Inc.
Utilities: Oil & Gas Term Loan B Loan 3M USD LIBOR+ 2.25% 0.00 % 4.39 % 3/31/2025 4,473,629 4,426,230 4,445,669
Dell International L.L.C.
High Tech Industries Term Loan B Loan 1M USD LIBOR+ 2.00% 0.75 % 4.09 % 9/7/2023 3,954,811 3,907,383 3,963,155
Delta 2 (Lux) SARL
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.50% 1.00 % 4.59 % 2/1/2024 1,318,289 1,315,624 1,289,458
DHX Media Ltd.
Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 3.75% 1.00 % 5.84 % 12/29/2023 323,254 321,671 308,708
Diamond Sports Group LLC
Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 3.25% 0.00 % 5.34 % 8/24/2026 1,000,000 995,003 1,000,420
Digicert Buyer Inc.
High Tech Industries Term Loan Loan 3M USD LIBOR+ 4.00% 0.00 % 6.14 % 8/7/2026 1,500,000 1,496,250 1,493,745
Digital Room Holdings Inc.
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 5.00% 0.00 % 7.09 % 5/21/2026 3,000,000 2,956,260 2,863,140
Dole Food Company Inc.
Beverage Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 2.75% 1.00 % 4.84 % 4/8/2024 475,000 473,393 468,231
DTZ U.S. Borrower LLC
Construction & Building Term Loan B Loan 1M USD LIBOR+ 3.25% 0.00 % 5.34 % 8/21/2025 3,965,025 3,947,557 3,961,100
DynCorp International Inc.
Aerospace & Defense Term Loan B Loan 1M USD LIBOR+ 6.00% 1.00 % 8.09 % 8/18/2025 3,000,000 2,910,000 2,910,000
Eagletree-Carbide Acquisition Corp.
Consumer goods: Durable Term Loan Loan 3M USD LIBOR+ 4.25% 1.00 % 6.39 % 8/28/2024 3,947,432 3,930,114 3,888,221
EIG Investors Corp.
High Tech Industries Term Loan (06/18) Loan 3M USD LIBOR+ 3.75% 1.00 % 5.89 % 2/9/2023 2,330,596 2,314,831 2,288,156
Encapsys LLC
Chemicals Plastics & Rubber Term Loan Loan 1M USD LIBOR+ 3.50% 1.00 % 5.59 % 11/7/2024 500,000 495,159 499,165
Endo Luxembourg Finance Company I S.a.r.l.
Healthcare & Pharmaceuticals Term Loan B (4/17) Loan 1M USD LIBOR+ 4.25% 0.75 % 6.34 % 4/29/2024 3,957,215 3,933,535 3,610,959
Energy Acquisition LP
Capital Equipment Term Loan (6/18) Loan 3M USD LIBOR+ 4.25% 0.00 % 6.39 % 6/26/2025 1,980,000 1,963,814 1,791,900
Envision Healthcare Corporation
Healthcare & Pharmaceuticals Term Loan B (06/18) Loan 1M USD LIBOR+ 3.75% 0.00 % 5.84 % 10/10/2025 4,975,000 4,964,173 3,828,263
FinCo I LLC
Banking Finance Insurance & Real Estate 2018 Term Loan B Loan 1M USD LIBOR+ 2.00% 0.00 % 4.09 % 12/27/2022 360,542 359,853 360,243
First Eagle Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan B (10/18) Loan 3M USD LIBOR+ 2.75% 0.00 % 4.89 % 12/2/2024 4,975,000 4,950,163 4,959,478
Fitness International LLC
Services: Consumer Term Loan B (4/18) Loan 1M USD LIBOR+ 3.25% 0.00 % 5.34 % 4/18/2025 2,410,280 2,396,375 2,406,520
Franklin Square Holdings L.P.
Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 2.50% 0.00 % 4.59 % 8/1/2025 4,466,250 4,434,143 4,471,833
Fusion Connect Inc.(a)
Telecommunications Term Loan Loan 1M USD LIBOR+ 10.00% 0.00 % 12.09 % 10/3/2019 132,539 131,669 129,888
Fusion Connect Inc.(a)
Telecommunications Fusion Connect Bridge T/L Loan 1M USD LIBOR+ 10.00% 0.00 % 12.09 % 10/3/2019 67,108 64,763 65,766
Fusion Connect Inc.(a)
Telecommunications Fusion Connect T/L B Loan Prime+ 0.00% 0.00 % 5.00 % 5/4/2023 1,964,623 1,906,653 1,218,066
GBT Group Services B.V.
Hotel Gaming & Leisure Term Loan Loan 3M USD LIBOR+ 2.50% 0.00 % 4.64 % 8/13/2025 4,466,250 4,465,172 4,466,250
GC EOS Buyer Inc.
Automotive Term Loan B (06/18) Loan 2M USD LIBOR+ 4.50% 0.00 % 6.65 % 8/1/2025 2,977,500 2,951,467 2,921,672
General Nutrition Centers Inc.
Retail Term Loan B2 Loan 2M USD LIBOR+ 8.75% 0.75 % 10.90 % 3/4/2021 930,446 928,376 875,010
General Nutrition Centers Inc.
Retail FILO Term Loan Loan 1M USD LIBOR+ 7.00% 0.00 % 9.09 % 1/3/2023 585,849 584,560 591,157
GI Chill Acquisition LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 4.00% 0.00 % 6.14 % 8/6/2025 2,481,250 2,470,436 2,462,641
GI Revelation Acquisition LLC
Services: Business Term Loan Loan 1M USD LIBOR+ 5.00% 0.00 % 7.09 % 4/16/2025 1,238,120 1,232,754 1,204,852
Gigamon Inc.
Services: Business Term Loan B Loan 1M USD LIBOR+ 4.25% 1.00 % 6.34 % 12/27/2024 1,970,000 1,953,934 1,910,900
Global Tel*Link Corporation
Telecommunications Term Loan B Loan 1M USD LIBOR+ 4.25% 0.00 % 6.34 % 11/28/2025 3,055,102 3,055,102 2,913,040
Go Wireless Inc.
Telecommunications Term Loan Loan 1M USD LIBOR+ 6.50% 1.00 % 8.59 % 12/22/2024 3,291,558 3,245,572 3,184,583
GoodRX Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 2.75% 0.00 % 4.84 % 10/10/2025 1,451,972 1,448,800 1,438,542
Goodyear Tire & Rubber Company The
Chemicals Plastics & Rubber Second Lien Term Loan Loan 1M USD LIBOR+ 2.00% 0.00 % 4.09 % 3/7/2025 2,000,000 2,000,000 1,963,760
Greenhill & Co. Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.25% 0.00 % 5.34 % 4/12/2024 2,000,000 1,990,493 1,979,160
Grosvenor Capital Management Holdings LLLP
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.75% 1.00 % 4.84 % 3/28/2025 920,941 916,988 918,353
Guidehouse LLP
Aerospace & Defense Term Loan Loan 1M USD LIBOR+ 3.00% 0.00 % 5.09 % 5/1/2025 1,980,000 1,975,788 1,960,200
Harland Clarke Holdings Corp.
Media: Advertising Printing & Publishing Term Loan Loan 3M USD LIBOR+ 4.75% 1.00 % 6.89 % 11/3/2023 1,778,158 1,770,035 1,372,151
HD Supply Waterworks Ltd.
Construction & Building Term Loan Loan 3M USD LIBOR+ 2.75% 1.00 % 4.89 % 8/1/2024 491,250 490,233 490,022
Helix Acquisition Holdings Inc.
Capital Equipment Term Loan (2019 Incremental) Loan 3M USD LIBOR+ 3.75% 0.00 % 5.89 % 9/30/2024 2,992,500 2,935,481 2,895,244
Helix Gen Funding LLC
Energy: Electricity Term Loan B (02/17) Loan 1M USD LIBOR+ 3.75% 1.00 % 5.84 % 6/3/2024 264,030 263,649 251,929
HLF Financing SaRL LLC
Consumer goods:Non-durable Term Loan B (08/18) Loan 1M USD LIBOR+ 3.25% 0.00 % 5.34 % 8/18/2025 3,970,000 3,954,112 3,970,000
Holley Purchaser Inc.
Automotive Term Loan B Loan 3M USD LIBOR+ 5.00% 0.00 % 7.14 % 10/24/2025 2,487,500 2,465,267 2,412,875
Hostess Brands LLC
Beverage Food & Tobacco Cov-Lite Term Loan B Loan 3M USD LIBOR+ 2.25% 0.75 % 4.39 % 8/3/2022 1,460,321 1,457,435 1,457,196
Hudson River Trading LLC
Banking Finance Insurance & Real Estate Term Loan B (10/18) Loan 3M USD LIBOR+ 3.50% 0.00 % 5.64 % 4/3/2025 4,458,819 4,436,871 4,456,946
Hyperion Refinance S.a.r.l.
Banking Finance Insurance & Real Estate Tem Loan (12/17) Loan 1M USD LIBOR+ 3.50% 1.00 % 5.59 % 12/20/2024 1,718,505 1,710,015 1,715,497
Idera Inc.
High Tech Industries Term Loan B Loan 1M USD LIBOR+ 4.50% 1.00 % 6.59 % 6/28/2024 2,954,812 2,932,840 2,942,491
IG Investments Holdings LLC
Services: Business Term Loan Loan 1M USD LIBOR+ 4.00% 1.00 % 6.09 % 5/23/2025 1,386,218 1,380,076 1,372,647
Inmar Inc.
Services: Business Term Loan B Loan 3M USD LIBOR+ 4.00% 1.00 % 6.14 % 5/1/2024 3,474,772 3,387,394 3,280,775
ION Media Networks Inc.
Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 3.00% 0.00 % 5.09 % 12/18/2024 1,000,000 995,006 998,440
Isagenix International LLC
Beverage Food & Tobacco Term Loan Loan 3M USD LIBOR+ 5.75% 1.00 % 7.89 % 6/16/2025 2,874,359 2,823,488 2,208,456
Jefferies Finance LLC / JFINCo-Issuer Corp
Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 3.75% 0.00 % 5.84 % 6/3/2026 2,000,000 1,995,247 1,994,380
Jill Holdings LLC
Retail Term Loan (1st Lien) Loan 3M USD LIBOR+ 5.00% 1.00 % 7.14 % 5/9/2022 1,848,782 1,844,754 1,703,191
JP Intermediate B LLC
Consumer goods:Non-durable Term Loan Loan 3M USD LIBOR+ 5.50% 1.00 % 7.64 % 11/20/2025 4,812,500 4,761,716 4,102,656
Kinetic Concepts Inc.
Healthcare & Pharmaceuticals 1/17 USD Term Loan Loan 3M USD LIBOR+ 3.25% 1.00 % 5.39 % 2/2/2024 2,352,000 2,344,109 2,353,176
Lakeland Tours LLC
Hotel Gaming & Leisure Term Loan B Loan 3M USD LIBOR+ 4.00% 1.00 % 6.14 % 12/16/2024 2,469,988 2,462,133 2,475,126
Lannett Company Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 5.38% 1.00 % 7.47 % 11/25/2022 2,467,387 2,439,893 2,396,450
Learfield Communications LLC
Media: Advertising Printing & Publishing Initial Term Loan(A-L Parent) Loan 1M USD LIBOR+ 3.25% 1.00 % 5.34 % 12/1/2023 487,500 485,952 488,261
Lighthouse Network LLC
Banking Finance Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 4.50% 1.00 % 6.64 % 12/2/2024 3,398,250 3,386,881 3,391,895
Lightstone Holdco LLC
Energy: Electricity Term Loan B Loan 1M USD LIBOR+ 3.75% 1.00 % 5.84 % 1/30/2024 1,322,520 1,320,527 1,274,578
Lightstone Holdco LLC
Energy: Electricity Term Loan C Loan 1M USD LIBOR+ 3.75% 1.00 % 5.84 % 1/30/2024 74,592 74,484 71,888
Lindblad Expeditions Inc.
Hotel Gaming & Leisure US 2018 Term Loan Loan 1M USD LIBOR+ 3.25% 0.00 % 5.34 % 3/27/2025 396,000 395,181 396,000
Lindblad Expeditions Inc.
Hotel Gaming & Leisure Cayman Term Loan Loan 1M USD LIBOR+ 3.25% 0.00 % 5.34 % 3/27/2025 99,000 98,795 99,000
Liquidnet Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.25% 1.00 % 5.34 % 7/15/2024 2,898,524 2,891,191 2,884,031
LPL Holdings Inc.
Banking Finance Insurance & Real Estate Incremental Term Loan B Loan 1M USD LIBOR+ 2.25% 0.00 % 4.34 % 9/23/2024 1,715,077 1,712,115 1,717,220
McAfee LLC
Services: Business Term Loan B Loan 1M USD LIBOR+ 3.75% 0.00 % 5.84 % 9/30/2024 3,175,415 3,144,464 3,180,051
McDermott International Inc.
Construction & Building Term Loan B Loan 1M USD LIBOR+ 5.00% 1.00 % 7.09 % 5/12/2025 1,975,000 1,941,374 1,807,737
McGraw-Hill Global Education Holdings LLC
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.00% 1.00 % 6.09 % 5/4/2022 961,813 959,469 907,173
Med Parentco LP
Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.25% 0.00 % 6.39 % 7/31/2026 800,189 792,188 790,851
Meredith Corporation
Media: Advertising Printing & Publishing Term Loan B (10/18) Loan 1M USD LIBOR+ 2.75% 0.00 % 4.84 % 1/31/2025 578,738 577,570 579,461
Messer Industries GMBH
Chemicals Plastics & Rubber Term Loan B Loan 3M USD LIBOR+ 2.50% 0.00 % 4.64 % 3/2/2026 2,992,500 2,985,268 2,971,672
Michaels Stores Inc.
Retail Term Loan B Loan 1M USD LIBOR+ 2.50% 1.00 % 4.59 % 1/30/2023 2,613,989 2,604,012 2,476,755
Midwest Physician Administrative Services LLC
Healthcare & Pharmaceuticals Term Loan (2/18) Loan 1M USD LIBOR+ 2.75% 0.75 % 4.84 % 8/15/2024 975,864 971,954 944,148
Milk Specialties Company
Beverage Food & Tobacco Term Loan (2/17) Loan 1M USD LIBOR+ 4.00% 1.00 % 6.09 % 8/16/2023 3,949,017 3,890,651 3,805,865
MKS Instruments Inc.
High Tech Industries Term LoanB-5 Loan 1M USD LIBOR+ 2.25% 0.00 % 4.34 % 2/2/2026 997,500 988,048 999,994
MLN US HoldCo LLC
Telecommunications Term Loan Loan 1M USD LIBOR+ 4.50% 0.00 % 6.59 % 11/28/2025 995,000 992,816 943,758
MRC Global (US) Inc.
Metals & Mining Term Loan B2 Loan 1M USD LIBOR+ 3.00% 0.00 % 5.09 % 9/20/2024 492,500 491,492 492,500
NAI Entertainment Holdings LLC
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.50% 1.00 % 4.59 % 5/8/2025 992,500 990,438 992,500
Natgasoline LLC
Chemicals Plastics & Rubber Term Loan Loan 1M USD LIBOR+ 3.50% 0.00 % 5.59 % 11/14/2025 497,500 495,279 496,256
National Mentor Holdings Inc.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 4.25% 0.00 % 6.34 % 3/9/2026 1,878,333 1,860,193 1,870,125
National Mentor Holdings Inc.
Healthcare & Pharmaceuticals Term Loan C Loan 1M USD LIBOR+ 4.25% 0.00 % 6.34 % 3/9/2026 116,959 115,848 116,448
NeuStar Inc.
Telecommunications Term Loan B4 (03/18) Loan 1M USD LIBOR+ 3.50% 1.00 % 5.59 % 8/8/2024 2,977,273 2,929,926 2,882,000
NeuStar Inc.
Telecommunications Term LoanB-5 Loan 1M USD LIBOR+ 4.50% 0.00 % 6.59 % 8/8/2024 997,500 978,894 978,178
New Media Holdings II LLC
Media: Diversified & Production Term Loan Loan 3M USD LIBOR+ 6.25% 1.00 % 8.39 % 7/14/2022 5,943,605 5,934,790 5,931,242
Nexstar Broadcasting Inc.
Media: Broadcasting & Subscription Term Loan Loan 3M USD LIBOR+ 2.75% 0.00 % 4.89 % 6/19/2026 250,000 248,750 249,960
NMI Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 6M USD LIBOR+ 4.75% 1.00 % 6.79 % 5/23/2023 3,472,444 3,476,752 3,463,762
NorthPole Newco S.a r.l
Aerospace & Defense Term Loan Loan 3M USD LIBOR+ 7.00% 0.00 % 9.14 % 3/3/2025 4,937,500 4,453,969 4,449,922
Novetta Solutions LLC
Aerospace & Defense Term Loan Loan 1M USD LIBOR+ 5.00% 1.00 % 7.09 % 10/17/2022 1,929,870 1,919,946 1,884,846
Novetta Solutions LLC
Aerospace & Defense Second Lien Term Loan Loan 1M USD LIBOR+ 8.50% 1.00 % 10.59 % 10/16/2023 1,000,000 993,743 970,000
NPC International Inc.
Beverage Food & Tobacco Term Loan Loan 3M USD LIBOR+ 3.50% 1.00 % 5.64 % 4/19/2024 490,000 489,591 349,860
Ocean Bidco Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 6M USD LIBOR+ 4.50% 1.00 % 6.54 % 3/21/2025 473,186 471,085 469,046
OCI Partners LP
Chemicals Plastics & Rubber Term Loan B (2/18) Loan 3M USD LIBOR+ 4.00% 0.00 % 6.14 % 3/13/2025 3,051,744 3,029,363 3,040,300
Office Depot Inc.
Retail Term Loan B Loan 1M USD LIBOR+ 5.25% 1.00 % 7.34 % 11/8/2022 2,683,109 2,669,692 2,705,459
Owens & Minor Distribution Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 4.50% 0.00 % 6.59 % 4/30/2025 495,000 486,466 419,265
Panther BF Aggregator 2 LP
Automotive Term Loan B Loan 1M USD LIBOR+ 3.50% 0.00 % 5.59 % 4/30/2026 1,500,000 1,485,062 1,473,285
PCI Gaming Authority
Hotel Gaming & Leisure Term Loan Loan 1M USD LIBOR+ 3.00% 0.00 % 5.09 % 5/29/2026 1,000,000 995,046 1,004,530
Peraton Corp.
Aerospace & Defense Term Loan Loan 1M USD LIBOR+ 5.25% 1.00 % 7.34 % 4/29/2024 2,460,000 2,449,235 2,429,250
PerForce Software Inc.
High Tech Industries Term Loan B Loan 1M USD LIBOR+ 4.50% 0.00 % 6.59 % 7/1/2026 1,000,000 995,037 995,320
PGX Holdings Inc.
Services: Consumer Term Loan Loan 1M USD LIBOR+ 5.25% 1.00 % 7.34 % 9/29/2020 3,619,510 3,603,841 3,348,047
PI UK Holdco II Limited
Services: Business Term Loan B1 (PI UK Holdco II) Loan 1M USD LIBOR+ 3.25% 1.00 % 5.34 % 1/3/2025 1,481,250 1,474,115 1,463,357
Plastipak Packaging Inc
Containers Packaging & Glass Term Loan B (04/18) Loan 1M USD LIBOR+ 2.50% 0.00 % 4.59 % 10/15/2024 982,500 978,481 978,570
Polymer Process Holdings Inc
Containers Packaging & Glass Term Loan Loan 1M USD LIBOR+ 6.00% 0.00 % 8.09 % 4/30/2026 3,000,000 2,941,947 2,940,000
Presidio Inc.
Services: Business Term Loan B 2017 Loan 3M USD LIBOR+ 2.75% 1.00 % 4.89 % 2/2/2024 1,569,741 1,541,146 1,570,400
Prime Security Services Borrower LLC
Services: Consumer Refi Term LoanB-1 Loan 1M USD LIBOR+ 2.75% 1.00 % 4.84 % 5/2/2022 1,696,914 1,691,910 1,694,623
Priority Payment Systems Holdings LLC
High Tech Industries Term Loan Loan 1M USD LIBOR+ 5.00% 1.00 % 7.09 % 1/3/2023 2,485,459 2,473,142 2,448,178
Project Accelerate Parent LLC
Services: Business Term Loan Loan 1M USD LIBOR+ 4.25% 1.00 % 6.34 % 1/2/2025 1,975,000 1,966,795 1,965,125
Prometric Holdings Inc.
Services: Consumer Term Loan Loan 1M USD LIBOR+ 3.00% 1.00 % 5.09 % 1/29/2025 493,763 491,782 481,418
Rackspace Hosting Inc.
High Tech Industries Term Loan B Loan 3M USD LIBOR+ 3.00% 1.00 % 5.14 % 11/3/2023 1,483,633 1,474,202 1,373,755
Radio Systems Corporation
Consumer goods: Durable Term Loan Loan 3M USD LIBOR+ 2.75% 1.00 % 4.89 % 5/2/2024 1,470,000 1,470,000 1,444,275
Radiology Partners Inc.
Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.75% 0.00 % 6.89 % 7/9/2025 1,493,731 1,486,716 1,431,741
Research Now Group Inc.
Media: Advertising Printing & Publishing Term Loan Loan 3M USD LIBOR+ 5.50% 1.00 % 7.64 % 12/20/2024 3,947,443 3,826,320 3,941,522
Resolute Investment Managers Inc.
Banking Finance Insurance & Real Estate Term Loan (10/17) Loan 3M USD LIBOR+ 3.25% 1.00 % 5.39 % 4/29/2022 2,695,064 2,696,965 2,691,129
Revspring Inc.
Services: Business Term Loan B Loan 1M USD LIBOR+ 4.00% 0.00 % 6.09 % 10/10/2025 995,000 992,739 986,294
RGIS Services LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 7.50% 1.00 % 9.64 % 3/31/2023 482,554 477,260 401,727
Robertshaw US Holding Corp.
Consumer goods: Durable Term Loan B Loan 1M USD LIBOR+ 3.25% 1.00 % 5.34 % 2/28/2025 987,500 985,360 919,609
Rocket Software Inc.
High Tech Industries Term Loan (11/18) Loan 1M USD LIBOR+ 4.25% 0.00 % 6.34 % 11/28/2025 3,990,000 3,972,735 3,810,450
Rovi Solutions Corporation
Media: Diversified & Production Term Loan B Loan 1M USD LIBOR+ 2.50% 0.75 % 4.59 % 7/2/2021 1,332,669 1,330,593 1,314,344
Russell Investments US Institutional Holdco Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.25% 1.00 % 5.34 % 6/1/2023 4,163,323 4,056,254 4,113,030
Sahara Parent Inc.
High Tech Industries Term Loan B (11/18) Loan 1M USD LIBOR+ 4.50% 0.00 % 6.59 % 8/16/2024 1,965,150 1,947,538 1,952,160
Sally Holdings LLC
Retail Term Loan (Fixed) Loan Fixed 0.00% 0.00 % 0.00 % 7/5/2024 1,000,000 996,439 972,500
Sally Holdings LLC
Retail Term Loan B Loan 1M USD LIBOR+ 2.25% 0.00 % 4.34 % 7/5/2024 773,409 770,326 756,007
Savage Enterprises LLC
Energy: Oil & Gas Term Loan Loan 1M USD LIBOR+ 4.00% 0.00 % 6.09 % 8/1/2025 3,564,134 3,520,319 3,589,760
SCS Holdings I Inc.
High Tech Industries Term Loan Loan 3M USD LIBOR+ 4.25% 0.00 % 6.39 % 7/1/2026 2,000,000 1,995,147 1,998,120
Seadrill Operating LP
Energy: Oil & Gas Term Loan B Loan 3M USD LIBOR+ 6.00% 1.00 % 8.14 % 2/21/2021 910,206 889,870 531,169
SG Acquisition Inc.
Banking Finance Insurance & Real Estate Term Loan (Safe-Guard) Loan 3M USD LIBOR+ 5.00% 1.00 % 7.14 % 3/29/2024 1,440,000 1,429,771 1,429,200
Shearer’s Foods LLC
Beverage Food & Tobacco Term Loan Loan 1M USD LIBOR+ 4.25% 1.00 % 6.34 % 6/30/2021 2,829,464 2,822,538 2,818,854
Shutterfly Inc.
Media: Advertising Printing & Publishing Term Loan B2 Loan 1M USD LIBOR+ 2.75% 0.00 % 4.84 % 8/19/2024 3,002,802 2,951,595 2,999,920
Sirva Worldwide Inc.
Transportation: Cargo Term Loan B Loan 3M USD LIBOR+ 5.50% 0.00 % 7.64 % 8/4/2025 2,468,750 2,440,381 2,388,516
SMB Shipping Logistics LLC
Transportation: Consumer Term Loan B Loan 6M USD LIBOR+ 4.00% 1.00 % 6.04 % 2/2/2024 1,957,891 1,956,123 1,930,970
SP PF Buyer LLC
Consumer goods: Durable Term Loan B Loan 3M USD LIBOR+ 4.50% 0.00 % 6.64 % 12/19/2025 1,995,000 1,916,742 1,755,600
SRAM LLC
Consumer goods: Durable Term Loan Loan Prime+ 2.73% 1.00 % 3.73 % 3/15/2024 1,745,654 1,737,359 1,745,654
SRAM LLC
Consumer goods: Durable Delayed Draw Term Loan Loan 3M USD LIBOR+ 2.75% 1.00 % 4.89 % 3/15/2024 —   —   —
SS&C European Holdings S.A.R.L.
Services: Business Term Loan B4 Loan 1M USD LIBOR+ 2.25% 0.00 % 4.34 % 4/16/2025 218,475 218,015 218,698
SS&C Technologies Inc.
Services: Business Term LoanB-5 Loan 1M USD LIBOR+ 2.25% 0.00 % 4.34 % 4/16/2025 496,202 495,116 496,132
SS&C Technologies Inc.
Services: Business Term Loan B3 Loan 1M USD LIBOR+ 2.25% 0.00 % 4.34 % 4/16/2025 323,308 322,618 323,638
SSH Group Holdings Inc.
Consumer goods:Non-durable Term Loan Loan 2M USD LIBOR+ 4.25% 0.00 % 6.40 % 7/30/2025 2,383,995 2,376,489 2,360,155
Staples Inc.
Wholesale Term Loan (03/19) Loan 1M USD LIBOR+ 5.00% 0.00 % 7.09 % 4/16/2026 1,970,063 1,965,594 1,890,551
Stats Intermediate Holdings LLC
Hotel Gaming & Leisure Term Loan Loan 6M USD LIBOR+ 5.25% 0.00 % 7.29 % 7/10/2026 2,000,000 1,950,683 1,957,500
Steak N Shake Operations Inc.
Beverage Food & Tobacco Term Loan Loan 1M USD LIBOR+ 3.75% 1.00 % 5.84 % 3/19/2021 829,991 827,788 614,193
Sybil Software LLC
High Tech Industries Term Loan B (4/18) Loan 3M USD LIBOR+ 2.25% 1.00 % 4.39 % 9/29/2023 350,779 349,427 351,414
Teneo Holdings LLC
Services: Business Term Loan Loan 1M USD LIBOR+ 5.25% 1.00 % 7.34 % 7/11/2025 2,500,000 2,400,942 2,381,250
Tenneco Inc
Capital Equipment Term Loan B Loan 1M USD LIBOR+ 3.00% 0.00 % 5.09 % 10/1/2025 1,492,500 1,479,287 1,387,577
Ten-X LLC
Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.00% 1.00 % 6.09 % 9/30/2024 1,970,000 1,968,106 1,949,689
Terex Corporation
Capital Equipment Term Loan Loan 1M USD LIBOR+ 2.75% 0.75 % 4.84 % 1/31/2024 997,500 992,943 999,166
TGG TS Acquisition Company
Media: Diversified & Production Term Loan (12/18) Loan 3M USD LIBOR+ 6.50% 0.00 % 8.64 % 12/15/2025 2,925,000 2,781,829 2,910,375
The Edelman Financial Center LLC
Banking Finance Insurance & Real Estate Term Loan B (06/18) Loan 1M USD LIBOR+ 3.25% 0.00 % 5.34 % 7/21/2025 1,243,750 1,238,368 1,242,419
The Knot Worldwide Inc
Services: Consumer Term Loan Loan 1M USD LIBOR+ 4.50% 0.00 % 6.59 % 12/19/2025 3,980,000 3,972,584 3,960,100
Thor Industries Inc.
Automotive Term Loan (USD) Loan 1M USD LIBOR+ 3.75% 0.00 % 5.84 % 2/2/2026 2,140,419 2,115,080 2,076,206
Tivity Health Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 5.25% 0.00 % 7.34 % 3/6/2026 2,387,049 2,329,738 2,363,322
Tivity Health Inc.
Healthcare & Pharmaceuticals Term Loan A Loan 1M USD LIBOR+ 4.25% 0.00 % 6.34 % 3/8/2024 1,700,000 1,683,996 1,683,000
Transdigm Inc.
Aerospace & Defense Term Loan G Loan 3M USD LIBOR+ 2.50% 0.00 % 4.64 % 8/22/2024 4,127,243 4,133,128 4,083,412
Travel Leaders Group LLC
Hotel Gaming & Leisure Term Loan B (08/18) Loan 1M USD LIBOR+ 4.00% 0.00 % 6.09 % 1/25/2024 2,475,000 2,470,652 2,481,188
TRC Companies Inc.
Services: Business Term Loan Loan 1M USD LIBOR+ 3.50% 1.00 % 5.59 % 6/21/2024 3,394,091 3,383,185 3,368,635
Trico Group LLC
Containers Packaging & Glass Incremental Term Loan Loan 3M USD LIBOR+ 7.00% 1.00 % 9.14 % 2/2/2024 4,881,953 4,754,681 4,759,904
Truck Hero Inc.
Transportation: Cargo First Lien Term Loan Loan 1M USD LIBOR+ 3.75% 1.00 % 5.84 % 4/22/2024 2,942,456 2,924,531 2,687,433
Trugreen Limited Partnership
Services: Consumer Term Loan (03/19) Loan 1M USD LIBOR+ 3.75% 1.00 % 5.84 % 3/19/2026 986,340 976,969 988,806
Twin River Worldwide Holdings Inc.
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.75% 0.00 % 4.84 % 5/11/2026 1,000,000 995,135 997,000
United Natural Foods Inc.
Beverage Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 4.25% 0.00 % 6.34 % 10/22/2025 3,482,500 3,273,888 2,878,878
Univar USA Inc.
Chemicals Plastics & Rubber Term Loan B3 (11/17) Loan 1M USD LIBOR+ 2.25% 0.00 % 4.34 % 7/1/2024 1,851,592 1,844,405 1,850,593
Univar USA Inc.
Chemicals Plastics & Rubber Term LoanB-4 Loan 1M USD LIBOR+ 2.50% 0.00 % 4.59 % 7/1/2024 1,633,588 1,625,854 1,633,931
Univision Communications Inc.
Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 2.75% 1.00 % 4.84 % 3/15/2024 2,746,369 2,734,345 2,626,902
UOS LLC
Capital Equipment Term Loan B Loan 3M USD LIBOR+ 5.50% 1.00 % 7.64 % 4/18/2023 588,246 590,443 592,657
URS Holdco Inc.
Transportation: Cargo Term Loan (10/17) Loan 1M USD LIBOR+ 5.75% 1.00 % 7.84 % 8/30/2024 1,000,000 988,800 983,750
US Ecology Inc.
Environmental Industries Term Loan B Loan 3M USD LIBOR+ 2.50% 0.00 % 4.64 % 8/14/2026 500,000 498,750 501,875
VeriFone Systems Inc.
Banking Finance Insurance & Real Estate Term Loan (7/18) Loan 3M USD LIBOR+ 4.00% 0.00 % 6.14 % 8/20/2025 5,458,750 5,429,409 5,224,024
Verra Mobility Corp.
Construction & Building Term Loan Loan 1M USD LIBOR+ 3.75% 0.00 % 5.84 % 3/3/2025 493,750 491,645 494,984
VFH Parent LLC
Banking Finance Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 3.50% 0.00 % 5.64 % 3/2/2026 2,900,000 2,886,107 2,902,726
Victory Capital Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 3.25% 0.00 % 5.39 % 7/1/2026 486,364 481,615 485,454
Virtus Investment Partners Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 2.25% 0.75 % 4.39 % 6/3/2024 3,397,893 3,397,276 3,399,320
Vistra Operations Company LLC
Utilities: Electric 2018 Incremental Term Loan Loan 3M USD LIBOR+ 2.00% 0.00 % 4.14 % 12/31/2025 927,500 926,506 928,400
Vizient Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 2.50% 0.00 % 4.59 % 5/6/2026 498,750 497,673 500,311
Wand NewCo 3 Inc.
Automotive Term Loan B Loan 1M USD LIBOR+ 3.50% 0.00 % 5.59 % 2/5/2026 250,000 247,642 250,703
Weight Watchers International Inc.
Services: Consumer Term Loan B Loan 3M USD LIBOR+ 4.75% 0.75 % 6.89 % 11/29/2024 1,785,065 1,756,357 1,782,280
West Corporation
Telecommunications Term Loan B Loan 1M USD LIBOR+ 3.50% 1.00 % 5.59 % 10/10/2024 2,976,203 2,897,632 2,630,219
West Corporation
Telecommunications Term Loan B (Olympus Merger) Loan 1M USD LIBOR+ 4.00% 1.00 % 6.09 % 10/10/2024 1,243,687 1,163,506 1,108,660
Western Dental Services Inc.
Retail Term Loan (12/18) Loan 1M USD LIBOR+ 5.25% 1.00 % 7.34 % 6/30/2023 2,451,228 2,435,221 2,414,460
Western Digital Corporation
High Tech Industries Term LoanB-4 Loan 1M USD LIBOR+ 1.75% 0.00 % 3.84 % 4/29/2023 1,293,075 1,263,906 1,286,933
Winter Park Intermediate Inc.
Automotive Term Loan Loan 1M USD LIBOR+ 4.75% 0.00 % 6.84 % 4/4/2025 1,994,984 1,975,565 1,967,553
Wirepath LLC
Consumer goods:Non-durable Term Loan Loan 3M USD LIBOR+ 4.00% 1.00 % 6.14 % 8/5/2024 2,970,081 2,944,616 2,673,073
WP CityMD Bidco LLC
Services: Consumer Term Loan B Loan 1M USD LIBOR+ 4.50% 1.00 % 6.59 % 8/13/2026 3,500,000 3,465,294 3,457,720
Wynn Resorts Limited
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.25% 0.00 % 4.34 % 10/30/2024 1,990,000 1,973,051 1,989,065
YS Garments LLC
Retail Term Loan Loan 1W USD LIBOR+ 6.00% 1.00 % 8.14 % 8/9/2024 1,962,500 1,945,684 1,942,875
Zep Inc.
Chemicals Plastics & Rubber Term Loan Loan 3M USD LIBOR+ 4.00% 1.00 % 6.14 % 8/12/2024 2,456,250 2,446,919 1,930,195
Zest Acquisition Corp.
Healthcare & Pharmaceuticals Term Loan Loan 2M USD LIBOR+ 3.50% 0.00 % 5.65 % 3/14/2025 987,500 983,332 925,169

$ 503,563,838 $ 487,912,142

Number
of Shares Cost Fair
Value
Cash and cash equivalents

U.S. Bank Money Market (b)
7,669,413 $ 7,669,413 $ 7,669,413

Total cash and cash equivalents
7,669,413 $ 7,669,413 $ 7,669,413

(a)     Security is in default as of August 31, 2019.

Issuer Name

Industry

Asset Name
Asset
Type Reference Rate/Spread LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number
of Shares Cost Fair Value
Allen Media LLC
Media: Diversified & Production Term Loan B Loan 4M USD LIBOR+ 6.50 % 1.00 % 7.50 % 8/30/2023 2,962,500 2,898,258 2,943,984
Altisource S.a r.l.
Banking Finance Insurance & Real Estate Term Loan B (03/18) Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.50 % 4/3/2024 1,676,074 1,666,089 1,651,637
Altra Industrial Motion Corp.
Capital Equipment Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.43 % 10/1/2025 1,917,909 1,913,622 1,893,130
American Dental Partners Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+ 4.25 % 1.00 % 6.75 % 3/24/2023 997,500 987,844 985,031
American Greetings Corporation
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.93 % 4/5/2024 4,969,900 4,967,612 4,957,475
American Residential Services LLC
Services: Consumer Term Loan B Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.43 % 6/30/2022 3,956,604 3,945,057 3,897,255
Amynta Agency Borrower Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.93 % 2/28/2025 3,488,714 3,448,337 3,384,053
Anastasia Parent LLC
Consumer goods:Non-durable Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.18 % 8/11/2025 995,000 990,594 856,526
Anchor Glass Container Corporation
Containers Packaging & Glass Term Loan (07/17) Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.18 % 12/7/2023 488,794 487,055 439,000
Arctic Glacier U.S.A. Inc.
Beverage Food & Tobacco Term Loan (3/18) Loan 1M USD LIBOR+ 3.50 % �� 1.00 % 5.93 % 3/20/2024 3,350,967 3,330,502 3,346,778
Aretec Group Inc.
Banking Finance Insurance & Real Estate Term Loan (10/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.68 % 10/1/2025 1,995,000 1,990,648 1,960,088
ASG Technologies Group Inc.
High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.93 % 7/31/2024 492,516 490,599 489,437
AssetMark Financial Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 3M USD LIBOR+ 3.50 % 0.00 % 6.00 % 11/14/2025 2,493,750 2,490,117 2,499,984
Astoria Energy LLC
Energy: Electricity Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.43 % 12/24/2021 1,406,149 1,398,360 1,408,202
Asurion LLC
Banking Finance Insurance & Real Estate Term LoanB-4 (Replacement) Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.43 % 8/4/2022 2,078,304 2,071,534 2,068,660
Asurion LLC
Banking Finance Insurance & Real Estate Term Loan B6 Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.43 % 11/3/2023 496,660 493,172 494,549
Athenahealth Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+ 4.50 % 0.00 % 7.00 % 2/11/2026 2,000,000 1,962,053 2,002,500
Avaya Inc.
Telecommunications Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.68 % 12/16/2024 1,984,975 1,970,465 1,945,275
Avison Young (Canada) Inc.
Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.00 % 7.50 % 1/30/2026 1,995,000 1,955,885 1,955,100
Ball Metalpack Finco LLC
Containers Packaging & Glass Term Loan Loan 3M USD LIBOR+ 4.50 % 0.00 % 7.00 % 7/31/2025 3,974,975 3,956,970 3,967,542
Bausch Health Companies Inc.
Healthcare & Pharmaceuticals Term Loan B (05/18) Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.43 % 6/2/2025 1,708,604 1,701,767 1,701,137
Berry Global Group Inc.
Chemicals Plastics & Rubber Term Loan (05/19) Loan 3M USD LIBOR+ 2.50 % 0.00 % 5.00 % 6/15/2026 5,000,000 4,987,500 4,968,050

Issuer Name

Industry

Asset Name
Asset
Type Reference Rate/Spread LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number
of Shares Cost Fair Value
Blount International Inc.
Forest Products & Paper Term Loan B (09/18) Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.18 % 4/12/2023 3,480,013 3,476,754 3,481,091
Blucora Inc.
High Tech Industries Term Loan (11/17) Loan 2M USD LIBOR+ 3.00 % 1.00 % 4.00 % 5/22/2024 956,667 952,736 954,878
Boxer Parent Company Inc.
Services: Business Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.75 % 10/2/2025 2,493,750 2,471,351 2,411,357
Bracket Intermediate Holding Corp.
Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.75 % 9/5/2025 995,000 990,507 990,025
Broadstreet Partners Inc.
Banking Finance Insurance & Real Estate Term Loan B2 Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.68 % 11/8/2023 1,032,536 1,030,459 1,025,763
Cable & Wireless Communications Limited
Telecommunications Term Loan B4 Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.68 % 1/30/2026 2,186,667 2,184,342 2,188,591
Calceus Acquisition Inc.
Consumer goods:Non-durable Term Loan B Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.93 % 2/12/2025 993,750 981,768 985,989
Callaway Golf Company
Retail Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.93 % 1/2/2026 748,125 733,835 754,671
Canyon Valor Companies Inc.
Media: Advertising Printing & Publishing Term Loan B Loan 3M USD LIBOR+ 2.75 % 0.00 % 5.25 % 6/16/2023 936,691 934,349 929,956
Capital Automotive L.P.
Banking Finance Insurance & Real Estate First Lien Term Loan Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.93 % 3/25/2024 476,840 475,124 470,965
CareerBuilder LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 6.75 % 1.00 % 9.25 % 7/31/2023 2,266,211 2,226,525 2,246,382
CareStream Health Inc.
High Tech Industries Term Loan Loan 1M USD LIBOR+ 5.75 % 1.00 % 8.18 % 2/28/2021 2,809,881 2,798,872 2,725,585
Casa Systems Inc.
Telecommunications Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.43 % 12/20/2023 1,466,250 1,456,054 1,319,625
CCS-CMGC Holdings Inc.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 5.25 % 0.00 % 7.68 % 10/1/2025 2,493,750 2,471,156 2,428,288
Cengage Learning Inc.
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.68 % 6/7/2023 1,458,708 1,444,248 1,390,338
CenturyLink Inc.
Telecommunications Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.18 % 1/31/2025 3,959,975 3,937,524 3,849,214
Charter Communications Operating LLC.
Media: Broadcasting & Subscription Term Loan (12/17) Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.43 % 4/30/2025 1,580,000 1,578,463 1,578,562
Compass Power Generation L.L.C.
Utilities: Electric Term Loan B (08/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.93 % 12/20/2024 1,948,039 1,943,458 1,948,039
Compuware Corporation
High Tech Industries Term Loan (08/18) Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.93 % 8/22/2025 498,750 497,630 498,336
Concordia International Corp.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 5.50 % 1.00 % 7.93 % 9/6/2024 1,201,860 1,142,088 1,121,636
Consolidated Aerospace Manufacturing LLC
Aerospace & Defense Term Loan (1st Lien) Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.18 % 8/11/2022 2,418,750 2,412,778 2,400,609
Consolidated Communications Inc.
Telecommunications Term Loan B Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.43 % 10/5/2023 1,486,781 1,474,512 1,454,726
Covia Holdings Corporation
Metals & Mining Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.50 % 6/2/2025 992,500 992,500 836,181

Issuer Name

Industry

Asset Name
Asset
Type Reference Rate/Spread LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number
of Shares Cost Fair Value
CPI Acquisition Inc
Banking Finance Insurance & Real Estate Term Loan B (1st Lien) Loan 3M USD LIBOR+ 4.50 % 1.00 % 7.00 % 8/17/2022 1,436,782 1,425,623 1,149,425
Crown Subsea Communications Holding Inc
Construction & Building Term Loan Loan 1M USD LIBOR+ 6.00 % 0.00 % 8.43 % 11/3/2025 3,950,000 3,908,672 3,903,904
CSC Holdings LLC
Media: Broadcasting & Subscription Term Loan B (03/17) Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.68 % 7/17/2025 1,989,848 1,966,492 1,946,569
CSC Holdings LLC
Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.68 % 1/15/2026 498,750 497,591 486,072
CT Technologies Intermediate Hldgs Inc
Healthcare & Pharmaceuticals New Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.68 % 12/1/2021 1,436,531 1,430,430 1,147,070
Cumulus Media New Holdings Inc.
Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.93 % 5/13/2022 334,968 332,401 333,504
Daseke Companies Inc.
Transportation: Cargo Replacement Term Loan Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.43 % 2/27/2024 1,970,662 1,960,592 1,966,346
Dealer Tire LLC
Automotive Term Loan B Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.93 % 12/12/2025 3,000,000 2,895,065 3,000,000
Delek US Holdings Inc.
Utilities: Oil & Gas Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.68 % 3/31/2025 4,484,924 4,438,638 4,440,075
Dell International L.L.C.
High Tech Industries Term Loan B Loan 1M USD LIBOR+ 2.00 % 0.75 % 4.43 % 9/7/2023 3,964,874 3,914,817 3,940,966
Delta 2 (Lux) SARL
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.93 % 2/1/2024 1,318,289 1,315,604 1,286,505
DHX Media Ltd.
Media: Broadcasting & Subscription Term Loan Loan Prime+ 3.72 % 1.00 % 4.72 % 12/29/2023 332,042 330,617 325,401
Digital Room Holdings Inc.
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 5.00 % 0.00 % 7.43 % 5/21/2026 3,000,000 2,955,000 2,947,500
Dole Food Company Inc.
Beverage Food & Tobacco Term Loan B Loan Prime+ 2.75 % 1.00 % 3.75 % 4/8/2024 478,125 476,404 466,024
Drew Marine Group Inc.
Transportation: Consumer First Lien Term Loan Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.68 % 11/19/2020 2,833,564 2,822,926 2,817,639
DTZ U.S. Borrower LLC
Construction & Building Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.68 % 8/21/2025 3,975,013 3,957,093 3,961,338
Eagletree-Carbide Acquisition Corp.
High Tech Industries Term Loan Loan 3M USD LIBOR+ 4.25 % 1.00 % 6.75 % 8/28/2024 3,957,456 3,939,756 3,878,307
Education Management II LLC (a)
Services: Consumer Term Loan B Loan Prime+ 8.50 % 1.00 % 9.50 % 7/2/2020 954,307 947,426 477
Education Management II LLC (a)
Services: Consumer Term Loan A Loan Prime+ 5.50 % 1.00 % 6.50 % 7/2/2020 423,861 420,013 8,477
EIG Investors Corp.
High Tech Industries Term Loan (06/18) Loan 3M USD LIBOR+ 3.75 % 1.00 % 6.25 % 2/9/2023 2,370,640 2,354,858 2,362,058
Emerald 2 Ltd. (Eagle US / Emerald Newco / ERM Canada / ERM US)
Environmental Industries Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.50 % 5/14/2021 988,553 984,749 985,152
Endo Luxembourg Finance Company I S.a.r.l.
Healthcare & Pharmaceuticals Term Loan B (4/17) Loan 1M USD LIBOR+ 4.25 % 0.75 % 6.68 % 4/29/2024 3,967,310 3,943,497 3,853,250

Issuer Name

Industry

Asset Name
Asset
Type Reference Rate/Spread LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number
of Shares Cost Fair Value
Energy Acquisition LP
Capital Equipment Term Loan (6/18) Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.75 % 6/26/2025 1,985,000 1,967,240 1,875,825
Envision Healthcare Corporation
Healthcare & Pharmaceuticals Term Loan B (06/18) Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.18 % 10/10/2025 4,987,500 4,976,718 4,518,125
Fastener Acquisition Inc.
Construction & Building Term Loan B Loan Prime+ 3.25 % 1.00 % 4.25 % 3/28/2025 495,000 492,889 490,050
FinCo I LLC
Banking Finance Insurance & Real Estate 2018 Term Loan B Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.43 % 12/27/2022 360,542 359,822 359,576
First Eagle Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan B (10/18) Loan 3M USD LIBOR+ 2.75 % 0.00 % 5.25 % 12/2/2024 4,987,500 4,961,905 4,968,796
Fitness International LLC
Services: Consumer Term Loan B (4/18) Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.68 % 4/18/2025 2,717,217 2,699,813 2,702,788
Franklin Square Holdings L.P.
Banking Finance Insurance & Real Estate Term Loan Loan 2M USD LIBOR+ 2.50 % 0.00 % 2.50 % 8/1/2025 4,477,500 4,447,102 4,477,500
Fusion Connect Inc. (a)
Telecommunications Term Loan B Loan Prime+ 7.00 % 1.00 % 8.00 % 5/4/2023 1,964,623 1,900,115 1,326,120
Fusion Connect Inc.
Telecommunications Bridge Term Loan Loan 1M USD LIBOR+ 10.00 % 0.00 % 12.43 % 6/3/2019 67,108 64,843 62,746
GBT Group Services B.V.
Hotel Gaming & Leisure Term Loan Loan 3M USD LIBOR+ 2.50 % 0.00 % 5.00 % 8/13/2025 4,477,500 4,476,395 4,466,306
GC EOS Buyer Inc.
Automotive Term Loan B (06/18) Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.93 % 8/1/2025 2,985,000 2,957,516 2,970,075
General Nutrition Centers Inc.
Retail Term Loan B2 Loan 1M USD LIBOR+ 8.75 % 0.75 % 11.18 % 3/4/2021 930,446 928,194 840,193
General Nutrition Centers Inc.
Retail FILO Term Loan Loan 1M USD LIBOR+ 7.00 % 0.00 % 9.43 % 1/3/2023 585,849 584,477 590,243
GI Chill Acquisition LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 4.00 % 0.00 % 6.50 % 8/6/2025 2,487,500 2,476,465 2,475,063
GI Revelation Acquisition LLC
Services: Business Term Loan Loan 1M USD LIBOR+ 5.00 % 0.00 % 7.43 % 4/16/2025 1,241,247 1,235,779 1,225,731
Gigamon Inc.
Services: Business Term Loan B Loan 3M USD LIBOR+ 4.25 % 1.00 % 6.75 % 12/27/2024 1,975,000 1,958,439 1,910,813
Global Tel*Link Corporation
Telecommunications Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.68 % 11/28/2025 3,062,779 3,062,779 3,069,150
Go Wireless Inc.
Telecommunications Term Loan Loan 1M USD LIBOR+ 6.50 % 1.00 % 8.93 % 12/22/2024 3,336,039 3,288,820 3,242,897
GoodRX Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.43 % 10/10/2025 2,959,472 2,952,670 2,947,457
Goodyear Tire & Rubber Company The
Chemicals Plastics & Rubber Second Lien Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.43 % 3/7/2025 2,000,000 2,000,000 1,968,120
Greenhill & Co. Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.68 % 4/12/2024 2,000,000 1,990,279 1,988,760
Grosvenor Capital Management Holdings LLLP
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.18 % 3/28/2025 920,941 916,908 916,337
Guidehouse LLP
Aerospace & Defense Term Loan Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.43 % 5/1/2025 1,985,000 1,980,727 1,960,188
Harland Clarke Holdings Corp.
Media: Advertising Printing & Publishing Term Loan Loan 3M USD LIBOR+ 4.75 % 1.00 % 7.25 % 11/3/2023 1,805,702 1,797,111 1,497,974

Issuer Name

Industry

Asset Name
Asset
Type Reference Rate/Spread LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number
of Shares Cost Fair Value
HD Supply Waterworks Ltd.
Construction & Building Term Loan Loan 3M USD LIBOR+ 3.00 % 1.00 % 5.50 % 8/1/2024 492,500 491,492 490,860
Helix Acquisition Holdings Inc.
Capital Equipment Term Loan (04/18) Loan 3M USD LIBOR+ 3.75 % 0.00 % 6.25 % 9/30/2024 3,000,000 2,940,659 2,925,000
Helix Gen Funding LLC
Energy: Electricity Term Loan B (02/17) Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.18 % 6/3/2024 264,030 263,595 245,474
HLF Financing SaRL LLC
Consumer goods:Non-durable Term Loan B (08/18) Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.68 % 8/18/2025 3,980,000 3,964,169 3,973,791
Hoffmaster Group Inc.
Forest Products & Paper Term Loan B1 Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.43 % 11/21/2023 1,071,649 1,074,400 1,066,966
Holley Purchaser Inc.
Automotive Term Loan B Loan 3M USD LIBOR+ 5.00 % 0.00 % 7.50 % 10/24/2025 2,493,750 2,470,922 2,418,938
Hostess Brands LLC
Beverage Food & Tobacco Cov-Lite Term Loan B Loan 3M USD LIBOR+ 2.25 % 0.75 % 4.75 % 8/3/2022 1,464,027 1,461,004 1,451,583
Hudson River Trading LLC
Banking Finance Insurance & Real Estate Term Loan B (10/18) Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.93 % 4/3/2025 4,470,050 4,448,109 4,467,279
Hyperion Refinance S.a.r.l.
Banking Finance Insurance & Real Estate Term Loan (12/17) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.93 % 12/20/2024 1,722,866 1,714,213 1,719,145
Idera Inc.
High Tech Industries Term Loan B Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.93 % 6/28/2024 1,959,799 1,942,451 1,953,273
IG Investments Holdings LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.50 % 5/23/2025 1,389,718 1,383,349 1,380,338
Inmar Inc.
Services: Business Term Loan B Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.50 % 5/1/2024 3,483,636 3,392,605 3,281,167
Isagenix International LLC
Beverage Food & Tobacco Term Loan Loan 3M USD LIBOR+ 5.75 % 1.00 % 8.25 % 6/16/2025 2,912,179 2,859,684 2,286,061
Jefferies Finance LLC / JFINCo-Issuer Corp
Banking Finance Insurance & Real Estate Term Loan Loan 3M USD LIBOR+ 3.75 % 0.00 % 6.25 % 5/22/2026 2,000,000 1,995,000 1,996,260
Jill Holdings LLC
Retail Term Loan (1st Lien) Loan 3M USD LIBOR+ 5.00 % 1.00 % 7.50 % 5/9/2022 1,854,084 1,849,857 1,798,462
JP Intermediate B LLC
Consumer goods:Non-durable Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 8.00 % 11/20/2025 4,875,000 4,823,515 4,302,188
Kinetic Concepts Inc.
Healthcare & Pharmaceuticals 1/17 USD Term Loan Loan 3M USD LIBOR+ 3.25 % 1.00 % 5.75 % 2/2/2024 2,358,000 2,349,801 2,358,660
KUEHG Corp.
Services: Consumer Term LoanB-3 Loan 3M USD LIBOR+ 3.75 % 1.00 % 6.25 % 2/21/2025 496,250 495,190 494,285
Lakeland Tours LLC
Hotel Gaming & Leisure Term Loan B Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.50 % 12/16/2024 2,476,241 2,467,719 2,470,050
Lannett Company Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 5.38 % 1.00 % 7.81 % 11/25/2022 2,506,885 2,476,921 2,341,856
Learfield Communications LLC
Media: Advertising Printing & Publishing Initial Term Loan(A-L Parent) Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.68 % 12/1/2023 488,750 487,145 488,291
Lighthouse Network LLC
Banking Finance Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 4.50 % 1.00 % 7.00 % 12/2/2024 3,406,875 3,394,841 3,404,047
Lightstone Holdco LLC
Energy: Electricity Term Loan B Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.18 % 1/30/2024 1,322,520 1,320,446 1,306,491
Lightstone Holdco LLC
Energy: Electricity Term Loan C Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.18 % 1/30/2024 74,592 74,483 73,688
Lindblad Expeditions Inc.
Hotel Gaming & Leisure US 2018 Term Loan Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.68 % 3/27/2025 397,000 396,154 397,496

Issuer Name

Industry

Asset Name
Asset
Type Reference Rate/Spread LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number
of Shares Cost Fair Value
Lindblad Expeditions Inc.
Hotel Gaming & Leisure Cayman Term Loan Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.68 % 3/27/2025 99,250 99,039 99,374
Liquidnet Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.68 % 7/15/2024 3,111,651 3,102,514 3,103,872
LPL Holdings Inc.
Banking Finance Insurance & Real Estate Incremental Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.68 % 9/23/2024 1,719,441 1,716,271 1,712,993
McAfee LLC
Services: Business Term Loan B Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.18 % 9/30/2024 2,683,414 2,655,341 2,676,329
McDermott International Inc.
Construction & Building Term Loan B Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.43 % 5/12/2025 1,980,000 1,945,314 1,929,946
McGraw-Hill Global Education Holdings LLC
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.43 % 5/4/2022 964,313 961,874 917,004
MedPlast Holdings Inc.
Healthcare & Pharmaceuticals Term Loan (06/18) Loan 3M USD LIBOR+ 3.75 % 0.00 % 6.25 % 7/2/2025 497,500 495,284 492,938
Meredith Corporation
Media: Advertising Printing & Publishing Term Loan B (10/18) Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.18 % 1/31/2025 619,590 618,326 618,685
Messer Industries GMBH
Chemicals Plastics & Rubber Term Loan B Loan 3M USD LIBOR+ 2.50 % 0.00 % 5.00 % 3/2/2026 3,000,000 2,992,539 2,947,500
Michaels Stores Inc.
Retail Term Loan B Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.93 % 1/30/2023 2,621,402 2,610,806 2,552,591
Midwest Physician Administrative Services LLC
Healthcare & Pharmaceuticals Term Loan (2/18) Loan 1M USD LIBOR+ 2.75 % 0.75 % 5.18 % 8/15/2024 977,985 973,973 954,758
Milk Specialties Company
Beverage Food & Tobacco Term Loan (2/17) Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.43 % 8/16/2023 3,959,345 3,898,674 3,880,158
MKS Instruments Inc.
High Tech Industries Term LoanB-5 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.68 % 2/2/2026 1,000,000 990,347 999,250
MLN US HoldCo LLC
Telecommunications Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.93 % 11/28/2025 997,500 995,329 984,672
MRC Global (US) Inc.
Metals & Mining Term Loan B2 Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.43 % 9/20/2024 493,750 492,710 493,444
NAI Entertainment Holdings LLC
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.93 % 5/8/2025 995,000 992,867 988,363
Natgasoline LLC
Chemicals Plastics & Rubber Term Loan Loan 3M USD LIBOR+ 3.50 % 0.00 % 6.00 % 11/14/2025 498,750 496,587 498,750
National Mentor Holdings Inc.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.68 % 3/9/2026 1,883,041 1,864,622 1,885,790
National Mentor Holdings Inc.
Healthcare & Pharmaceuticals Term Loan C Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.68 % 3/9/2026 116,959 115,834 117,130
NeuStar Inc.
Telecommunications Term Loan B4 (03/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.93 % 8/8/2024 2,984,848 2,939,264 2,875,394
NeuStar Inc.
Telecommunications Term LoanB-5 Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.93 % 8/8/2024 1,000,000 980,732 984,380
New Media Holdings II LLC
Media: Diversified & Production Term Loan Loan 1M USD LIBOR+ 6.25 % 1.00 % 8.68 % 7/14/2022 5,958,652 5,946,847 5,913,962
NMI Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.75 % 1.00 % 7.18 % 5/23/2023 3,481,212 3,486,036 3,472,509

Issuer Name

Industry

Asset Name
Asset
Type Reference Rate/Spread LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number
of Shares Cost Fair Value
NorthPole Newco S.a r.l
Aerospace & Defense Term Loan Loan 1M USD LIBOR+ 7.00 % 0.00 % 9.43 % 4/10/2025 5,000,000 4,500,000 4,475,000
Novetta Solutions LLC
Aerospace & Defense Term Loan Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.43 % 10/17/2022 1,934,870 1,924,512 1,896,173
Novetta Solutions LLC
Aerospace & Defense Second Lien Term Loan Loan 1M USD LIBOR+ 8.50 % 1.00 % 10.93 % 10/16/2023 1,000,000 993,643 970,000
NPC International Inc.
Beverage Food & Tobacco Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.93 % 4/19/2024 491,250 490,836 388,579
Ocean Bidco Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 6M USD LIBOR+ 4.75 % 1.00 % 7.27 % 3/21/2025 473,186 471,045 469,046
OCI Partners LP
Chemicals Plastics & Rubber Term Loan B (2/18) Loan 3M USD LIBOR+ 4.00 % 0.00 % 6.50 % 3/13/2025 3,059,470 3,038,507 3,055,646
Office Depot Inc.
Retail Term Loan B Loan 1M USD LIBOR+ 5.25 % 1.00 % 7.68 % 11/8/2022 2,796,480 2,779,363 2,826,766
Outcomes Group Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 3M USD LIBOR+ 3.50 % 0.00 % 6.00 % 10/24/2025 498,750 497,590 490,855
Owens & Minor Distribution Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.93 % 4/30/2025 496,250 487,460 415,818
Panther BF Aggregator 2 LP
Automotive Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.93 % 4/30/2026 1,500,000 1,491,226 1,493,130
PCI Gaming Authority
Hotel Gaming & Leisure Term Loan Loan 3M USD LIBOR+ 3.00 % 0.00 % 5.50 % 5/15/2026 1,000,000 995,000 998,750
Peraton Corp.
Aerospace & Defense Term Loan Loan 1M USD LIBOR+ 5.25 % 1.00 % 7.68 % 4/29/2024 1,965,000 1,957,705 1,933,069
PGX Holdings Inc.
Services: Consumer Term Loan Loan 1M USD LIBOR+ 5.25 % 1.00 % 7.68 % 9/29/2020 3,646,940 3,627,894 3,428,124
PI UK Holdco II Limited
Services: Business Term Loan B1 (PI UK Holdco II) Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.68 % 1/3/2025 1,485,000 1,477,652 1,463,839
Plastipak Packaging Inc
Containers Packaging & Glass Term Loan B (04/18) Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.93 % 10/15/2024 985,000 980,865 979,090
Polymer Process Holdings Inc
Containers Packaging & Glass Term Loan Loan 1M USD LIBOR+ 6.00 % 0.00 % 8.43 % 4/30/2026 3,000,000 2,940,389 2,940,000
Presidio Inc.
Services: Business Term Loan B 2017 Loan 3M USD LIBOR+ 2.75 % 1.00 % 5.25 % 2/2/2024 1,644,326 1,612,761 1,636,515
Prime Security Services Borrower LLC
Services: Consumer Refi Term LoanB-1 Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.18 % 5/2/2022 1,696,914 1,691,626 1,681,082
Priority Payment Systems Holdings LLC
High Tech Industries Term Loan Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.43 % 1/3/2023 2,491,830 2,479,932 2,488,715
Project Accelerate Parent LLC
Services: Business Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.68 % 1/2/2025 1,980,000 1,971,620 1,980,000
Prometric Holdings Inc.
Services: Business Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.43 % 1/29/2025 495,000 492,950 487,575
Quad/Graphics Inc.
Media: Advertising Printing & Publishing Term Loan B (12/18) Loan 1M USD LIBOR+ 5.00 % 0.00 % 7.43 % 2/2/2026 4,500,000 4,436,948 4,511,250
Rackspace Hosting Inc.
High Tech Industries Term Loan B Loan 3M USD LIBOR+ 3.00 % 1.00 % 5.50 % 11/3/2023 1,487,418 1,477,523 1,376,101
Radio Systems Corporation
Consumer goods: Durable Term Loan Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.18 % 5/2/2024 1,473,750 1,473,750 1,457,170
Radiology Partners Inc.
Healthcare & Pharmaceuticals Term Loan Loan 6M USD LIBOR+ 4.75 % 0.00 % 7.27 % 7/9/2025 1,497,494 1,491,212 1,499,830

Issuer Name

Industry

Asset Name
Asset
Type Reference Rate/Spread LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number
of Shares Cost Fair Value
Research Now Group Inc.
Media: Advertising Printing & Publishing Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 8.00 % 12/20/2024 3,957,462 3,831,367 3,938,664
Resolute Investment Managers Inc.
Banking Finance Insurance & Real Estate Term Loan (10/17) Loan 3M USD LIBOR+ 3.25 % 1.00 % 5.75 % 4/29/2022 2,702,363 2,704,763 2,712,496
Revspring Inc.
Services: Business Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.68 % 10/10/2025 997,500 995,294 996,253
Reynolds Group Holdings Inc.
Metals & Mining Term Loan (01/17) Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.18 % 2/6/2023 1,721,509 1,721,509 1,702,865
RGIS Services LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 7.50 % 1.00 % 10.00 % 3/31/2023 482,554 477,021 375,587
Robertshaw US Holding Corp.
Consumer goods: Durable Term Loan B Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.93 % 2/28/2025 990,000 987,840 918,225
Rocket Software Inc.
High Tech Industries Term Loan (11/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.68 % 11/28/2025 4,000,000 3,983,420 3,923,000
Rovi Solutions Corporation
Media: Diversified & Production Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.75 % 4.93 % 7/2/2021 1,332,669 1,330,506 1,293,795
Russell Investments US Institutional Holdco Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 3.25 % 1.00 % 5.75 % 6/1/2023 4,174,054 4,060,948 4,140,995
Sahara Parent Inc.
High Tech Industries Term Loan B (11/18) Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.93 % 8/16/2024 1,970,100 1,952,021 1,959,895
Sally Holdings LLC
Retail Term Loan (Fixed) Loan Fixed 0.00 % 0.00 % 4.50 % 7/5/2024 1,000,000 996,257 962,500
Sally Holdings LLC
Retail Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.68 % 7/5/2024 775,864 772,678 770,045
Savage Enterprises LLC
Transportation: Cargo Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.93 % 8/1/2025 3,582,692 3,537,920 3,590,538
SCS Holdings I Inc.
High Tech Industries Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.68 % 10/31/2022 3,393,482 3,379,666 3,397,724
Seadrill Operating LP
Energy: Oil & Gas Term Loan B Loan 3M USD LIBOR+ 6.00 % 1.00 % 8.50 % 2/21/2021 912,725 889,081 696,810
SG Acquisition Inc.
Banking Finance Insurance & Real Estate Term Loan (Safe-Guard) Loan 3M USD LIBOR+ 5.00 % 1.00 % 7.50 % 3/29/2024 1,590,000 1,578,207 1,578,075
Shearer’s Foods LLC
Beverage Food & Tobacco Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.68 % 6/30/2021 2,877,498 2,869,886 2,865,498
Shutterfly Inc.
Media: Advertising Printing & Publishing Term Loan B2 Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.93 % 8/19/2024 3,010,328 2,961,429 2,989,647
Sirius Computer Solutions Inc.
High Tech Industries Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.75 % 5/22/2026 2,000,000 1,995,000 2,001,660
Sirva Worldwide Inc.
Transportation: Cargo Term Loan B Loan 3M USD LIBOR+ 5.50 % 0.00 % 8.00 % 8/4/2025 2,484,375 2,457,050 2,422,266
SMB Shipping Logistics LLC
Transportation: Consumer Term Loan B Loan 6M USD LIBOR+ 4.00 % 1.00 % 6.52 % 2/2/2024 1,957,930 1,956,288 1,948,140
SP PF Buyer LLC
Consumer goods: Durable Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.93 % 12/19/2025 2,000,000 1,923,708 1,907,500
SRAM LLC
Consumer goods: Durable Term Loan Loan Prime+ 2.72 % 1.00 % 3.72 % 3/15/2024 1,868,791 1,855,885 1,861,783
SS&C Technologies Inc.
Services: Business Term LoanB-5 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.68 % 4/16/2025 497,459 496,373 494,489
SS&C Technologies Inc.
Services: Business Term Loan B3 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.68 % 4/16/2025 324,131 323,440 322,070

Issuer Name

Industry

Asset Name
Asset
Type Reference Rate/Spread LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number
of Shares Cost Fair Value
SS&C Technologies Inc.
Services: Business Term Loan B4 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.68 % 4/16/2025 227,364 226,879 225,918
SSH Group Holdings Inc.
Consumer goods:Non-durable Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.75 % 7/30/2025 2,390,000 2,381,638 2,354,150
Staples Inc.
Retail Term Loan (03/19) Loan 3M USD LIBOR+ 5.00 % 0.00 % 7.50 % 4/16/2026 1,975,000 1,970,370 1,896,830
Stats LLC
Hotel Gaming & Leisure Term Loan Loan 3M USD LIBOR+ 5.25 % 0.00 % 7.75 % 5/22/2026 2,000,000 1,950,000 1,950,000
Steak N Shake Operations Inc.
Beverage Food & Tobacco Term Loan Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.18 % 3/19/2021 832,491 830,052 645,180
Sybil Software LLC
High Tech Industries Term Loan B (4/18) Loan 3M USD LIBOR+ 2.25 % 1.00 % 4.75 % 9/29/2023 355,219 353,781 353,571
Tenneco Inc
Capital Equipment Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.18 % 10/1/2025 1,496,250 1,482,744 1,412,086
Ten-X LLC
Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.43 % 9/30/2024 1,975,000 1,973,156 1,953,611
Terex Corporation
Capital Equipment Term Loan Loan 1M USD LIBOR+ 2.75 % 0.75 % 5.18 % 1/31/2024 1,000,000 995,199 999,380
TGG TS Acquisition Company
Media: Diversified & Production Term Loan (12/18) Loan 3M USD LIBOR+ 6.50 % 0.00 % 9.00 % 12/15/2025 2,962,500 2,821,992 2,936,578
The Edelman Financial Center LLC
Banking Finance Insurance & Real Estate Term Loan B (06/18) Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.68 % 7/21/2025 1,246,875 1,241,358 1,241,164
Thor Industries Inc.
Automotive Term Loan (USD) Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.18 % 2/2/2026 2,641,515 2,611,274 2,573,285
Tivity Health Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 5.25 % 0.00 % 7.68 % 3/6/2026 2,390,814 2,332,247 2,380,055
Tivity Health Inc.
Healthcare & Pharmaceuticals Term Loan A Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.68 % 3/8/2024 1,750,000 1,733,049 1,733,953
Townsquare Media Inc.
Media: Broadcasting & Subscription Term Loan B (02/17) Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.43 % 4/1/2022 881,975 879,413 880,873
Transdigm Inc.
Aerospace & Defense Term Loan G Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.93 % 8/22/2024 4,137,719 4,144,231 4,040,317
Travel Leaders Group LLC
Hotel Gaming & Leisure Term Loan B (08/18) Loan 1M USD LIBOR+ 4.00 % 0.00 % 6.43 % 1/25/2024 2,481,250 2,476,769 2,471,945
TRC Companies Inc.
Services: Business Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.93 % 6/21/2024 3,402,727 3,391,459 3,389,967
Trico Group LLC
Containers Packaging & Glass Incremental Term Loan Loan 3M USD LIBOR+ 7.00 % 1.00 % 9.50 % 2/2/2024 4,912,852 4,779,805 4,679,491
Truck Hero Inc.
Transportation: Cargo First Lien Term Loan Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.18 % 4/22/2024 2,949,962 2,931,468 2,800,016
Trugreen Limited Partnership
Services: Consumer Term Loan (03/19) Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.18 % 3/19/2026 988,813 979,250 991,285
Twin River Worldwide Holdings Inc.
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.18 % 5/11/2026 1,000,000 995,019 998,500
United Natural Foods Inc.
Beverage Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.68 % 10/22/2025 3,489,306 3,274,799 2,974,633
Univar USA Inc.
Chemicals Plastics & Rubber Term Loan B3 (11/17) Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.68 % 7/1/2024 1,851,592 1,844,293 1,844,649
Univar USA Inc.
Chemicals Plastics & Rubber Term LoanB-4 Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.93 % 7/1/2024 1,633,588 1,625,629 1,630,729

Issuer Name

Industry

Asset Name
Asset
Type Reference Rate/Spread LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number
of Shares Cost Fair Value
Univision Communications Inc.
Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.18 % 3/15/2024 2,746,369 2,734,005 2,607,897
UOS LLC
Capital Equipment Term Loan B Loan 1M USD LIBOR+ 5.50 % 1.00 % 7.93 % 4/18/2023 589,746 592,139 592,695
UPC Financing Partnership
Media: Broadcasting & Subscription Term Loan (10/17) Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.93 % 1/15/2026 832,911 832,134 830,912
VeriFone Systems Inc.
Banking Finance Insurance & Real Estate Term Loan (7/18) Loan 3M USD LIBOR+ 4.00 % 0.00 % 6.50 % 8/20/2025 5,472,500 5,443,430 5,396,377
Verra Mobility Corp.
Construction & Building Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.18 % 3/3/2025 495,000 492,872 496,445
VFH Parent LLC
Banking Finance Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 3.50 % 0.00 % 6.00 % 3/2/2026 2,900,000 2,885,855 2,897,941
Virtus Investment Partners Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 2.25 % 0.75 % 4.75 % 6/3/2024 3,567,004 3,566,338 3,547,671
Vistra Operations Company LLC
Utilities: Electric 2018 Incremental Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.43 % 12/31/2025 992,500 991,395 990,644
Vizient Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.18 % 5/6/2026 500,000 498,608 500,210
Wand NewCo 3 Inc.
Automotive Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.93 % 2/5/2026 250,000 247,584 250,625
Web.Com Group Inc.
High Tech Industries Term Loan B (08/18) Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.18 % 10/10/2025 454,338 453,310 449,890
WeddingWire Inc.
Services: Consumer Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.93 % 12/19/2025 3,990,000 3,983,163 3,980,025
Weight Watchers International Inc.
Services: Consumer Term Loan B Loan 3M USD LIBOR+ 4.75 % 0.75 % 7.25 % 11/29/2024 1,810,065 1,780,006 1,776,126
West Corporation
Telecommunications Term Loan B Loan 3M USD LIBOR+ 3.50 % 1.00 % 6.00 % 10/10/2024 2,983,719 2,901,690 2,702,145
West Corporation
Telecommunications Term Loan B (Olympus Merger) Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.50 % 10/10/2024 1,246,843 1,163,421 1,153,642
Western Dental Services Inc.
Retail Term Loan (12/18) Loan 1M USD LIBOR+ 5.25 % 1.00 % 7.68 % 6/30/2023 2,457,481 2,441,265 2,408,332
Western Digital Corporation
High Tech Industries Term LoanB-4 Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.18 % 4/29/2023 1,296,349 1,265,285 1,254,217
Wheel Pros LLC
Automotive Term Loan Loan 1M USD LIBOR+ 4.75 % 0.00 % 7.18 % 4/4/2025 2,000,000 1,982,141 1,980,000
Wirepath LLC
Consumer goods:Non-durable Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.43 % 8/5/2024 2,977,562 2,951,058 2,962,675
Wynn Resorts Limited
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.68 % 10/30/2024 1,995,000 1,977,968 1,978,661
YS Garments LLC
Retail Term Loan Loan 1W USD LIBOR+ 6.00 % 1.00 % 8.39 % 8/9/2024 1,975,000 1,957,489 1,955,250
Zep Inc.
Chemicals Plastics & Rubber Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.50 % 8/12/2024 2,462,500 2,453,195 1,955,225
Zest Acquisition Corp.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.93 % 3/14/2025 990,000 985,734 937,203

$ 511,212,385 $ 497,734,749

Number
of Shares Cost Fair Value
Cash and cash equivalents

U.S. Bank Money Market (b)
8,579,399 $ 8,579,399 $ 8,579,399

Total cash and cash equivalents
8,579,399 $ 8,579,399 $ 8,579,399

~~(a)~~
~~Security is in default as of May~~(b)     Included within cash and cash equivalents in Saratoga CLO’s Statements of Assets and Liabilities as of August 31, 2019.
~~(b)~~
~~Included within cash and cash equivalents in Saratoga CLO’s Statements of Assets and Liabilities as of May 31, 2019.~~
LIBOR—London Interbank Offered Rate
1W USD LIBOR—The 1 week USD LIBOR rate as of ~~May~~August 31, 2019 was ~~2.47%~~2.14%.
1M USD LIBOR—The 1 month USD LIBOR rate as of ~~May~~August 31, 2019 was ~~2.43%~~2.09%.
2M USD LIBOR—The 2 month USD LIBOR rate as of ~~May~~August 31, 2019 was ~~2.47%~~2.15%.
3M USD LIBOR—The 3 month USD LIBOR rate as of ~~May~~August 31, 2019 was ~~2.50%~~2.14%.
6M USD LIBOR—The 6 month USD LIBOR rate as of ~~May~~August 31, 2019 was ~~2.52%~~2.04%.
Prime—The Prime Rate as of ~~May~~August 31, 2019 was ~~5.50%~~5.25%.
Saratoga Investment Corp. CLO2013-1, Ltd.
Schedule of Investments
February 28, 2019

Issuer Name

Industry

Asset Name
Asset
Type Reference Rate/Spread LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number of
Shares Cost Fair Value
Education Management II LLC
Services: Consumer A-1 Preferred Shares Equity 6,692 $ 669,214 $ 13,384
Education Management II LLC
Services: Consumer A-2 Preferred Shares Equity 18,975 1,897,538 1,670
New Millennium Holdco, Inc.
Healthcare & Pharmaceuticals Common Stock Equity 14,813 964,466 637
24 Hour Fitness Worldwide Inc.
Services: Consumer Term Loan (5/18) Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 5/30/2025 $ 2,990,000 2,978,426 2,987,518
ABBCon-Cise Optical Group LLC
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.49 % 6/15/2023 2,103,445 2,080,167 2,037,712
Achilles Acquisition LLC
Banking Finance Insurance & Real Estate Term Loan (09/18) Loan 1M USD LIBOR+ 4.00 % 0.00 % 6.49 % 10/13/2025 6,000,000 5,985,885 5,962,500
Acosta Inc.
Media: Advertising Printing & Publishing Term Loan B (1st Lien) Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 9/27/2021 1,915,375 1,909,171 957,687
ADMI Corp.
Services: Consumer Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 4/30/2025 1,990,000 1,981,204 1,968,607
Advantage Sales & Marketing Inc.
Services: Business First Lien Term Loan Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 7/23/2021 2,396,156 2,394,791 2,098,889
Advantage Sales & Marketing Inc.
Services: Business Term Loan B Incremental Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 7/23/2021 494,975 487,610 431,247
Aegis Toxicology Sciences Corporation
Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 8.11 % 5/9/2025 3,990,000 3,954,925 3,850,350
Agiliti Health Inc.
Healthcare & Pharmaceuticals Delayed Draw Term Loan Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 1/5/2026 500,000 500,000 499,375
Agrofresh Inc.
Beverage Food & Tobacco Term Loan Loan 3M USD LIBOR+ 4.75 % 1.00 % 7.36 % 7/30/2021 2,919,744 2,915,422 2,883,247
AI Mistral (Luxembourg) Subco Sarl
High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 3/11/2024 491,250 491,250 455,020
AIS Holdco LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.00 % 7.61 % 8/15/2025 2,484,375 2,472,344 2,422,266
Akorn Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 5.50 % 1.00 % 7.99 % 4/16/2021 398,056 397,485 316,455
Albertson’s LLC
Retail Term Loan B7 Loan 1M USD LIBOR+ 3.00 % 0.75 % 5.49 % 11/17/2025 4,151,511 4,140,731 4,124,733
Alchemy US Holdco 1 LLC
Metals & Mining Term Loan Loan 6M USD LIBOR+ 5.50 % 0.00 % 8.19 % 10/10/2025 2,000,000 1,971,432 1,990,000
Alera Group Intermediate Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 8/1/2025 498,750 497,585 499,997
Alion Science and Technology Corporation
Aerospace & Defense Term Loan B (1st Lien) Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.99 % 8/19/2021 3,626,521 3,620,261 3,614,445
Allen Media LLC
Media: Diversified & Production Term Loan B Loan 3M USD LIBOR+ 6.50 % 1.00 % 7.50 % 8/30/2023 3,000,000 2,931,901 2,872,500
Altisource S.a r.l.
Banking Finance Insurance & Real Estate Term Loan B (03/18) Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.61 % 4/3/2024 1,677,030 1,666,628 1,639,296
Altra Industrial Motion Corp.
Capital Equipment Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.49 % 10/1/2025 1,955,223 1,950,844 1,930,783
American Greetings Corporation
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.99 % 4/5/2024 4,982,450 4,979,868 4,929,536
American Residential Services LLC
Services: Consumer Term Loan B Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 6/30/2022 3,966,883 3,954,749 3,907,380
Amynta Agency Borrower Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.00 % 0.00 % 6.49 % 2/28/2025 3,497,500 3,455,778 3,410,063
Anastasia Parent LLC
Consumer goods:Non-durable Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 8/11/2025 997,500 992,909 944,732
Anchor Glass Container Corporation
Containers Packaging & Glass Term Loan (07/17) Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.24 % 12/7/2023 490,038 488,206 392,520
AqGen Ascensus Inc.
Services: Consumer Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 12/5/2022 408,906 408,242 405,839
Aramark Services Inc.
Services: Consumer Term LoanB-2 Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.24 % 3/28/2024 1,294,904 1,294,904 1,287,212
Arctic Glacier U.S.A. Inc.
Beverage Food & Tobacco Term Loan (3/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 3/20/2024 3,350,967 3,329,140 3,283,948
Aretec Group Inc.
Banking Finance Insurance & Real Estate Term Loan (10/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.74 % 10/1/2025 2,000,000 1,995,758 1,975,000
ASG Technologies Group Inc.
High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 7/31/2024 493,763 491,798 485,739
AssetMark Financial Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 3M USD LIBOR+ 3.50 % 0.00 % 6.11 % 11/14/2025 2,500,000 2,496,120 2,490,625
Astoria Energy LLC
Energy: Electricity Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 12/24/2021 1,406,149 1,397,673 1,407,612
Asurion LLC
Banking Finance Insurance & Real Estate Term LoanB-4 (Replacement) Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 8/4/2022 2,084,268 2,077,055 2,082,788
Asurion LLC
Banking Finance Insurance & Real Estate Term Loan B6 Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 11/3/2023 497,955 494,277 497,512
Athenahealth Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+ 4.50 % 0.00 % 7.11 % 2/11/2026 2,000,000 1,960,211 1,988,760
Avaya Inc.
Telecommunications Term Loan B Loan 2M USD LIBOR+ 4.25 % 0.00 % 6.82 % 12/16/2024 1,990,000 1,974,743 1,987,015
Avolon TLB Borrower 1 US LLC
Capital Equipment Term Loan B3 Loan 1M USD LIBOR+ 2.00 % 0.75 % 4.49 % 1/15/2025 913,731 909,648 912,763
Ball Metalpack Finco LLC
Containers Packaging & Glass Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 7/31/2025 3,984,987 3,966,751 3,970,044
Bausch Health Companies Inc.
Healthcare & Pharmaceuticals Term Loan B (05/18) Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 6/2/2025 1,752,582 1,745,304 1,752,144
Bausch Health Companies Inc.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 11/27/2025 481,250 476,571 479,310
Blackboard Inc.
High Tech Industries Term Loan B4 Loan 3M USD LIBOR+ 5.00 % 1.00 % 7.61 % 6/30/2021 2,932,500 2,919,562 2,818,866
Blount International Inc.
Forest Products & Paper Term Loan B (09/18) Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 4/12/2023 3,488,756 3,485,266 3,484,395
Blucora Inc.
High Tech Industries Term Loan (11/17) Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 5/22/2024 706,667 703,725 704,900
Boxer Parent Company Inc.
Services: Business Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.86 % 10/2/2025 2,500,000 2,476,591 2,484,150
Bracket Intermediate Holding Corp.
Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.86 % 9/5/2025 997,500 992,812 985,031
Broadstreet Partners Inc.
Banking Finance Insurance & Real Estate Term Loan B2 Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 11/8/2023 1,035,177 1,032,997 1,032,589
Brookfield WEC Holdings Inc.
Energy: Electricity Term Loan Loan 1M USD LIBOR+ 3.75 % 0.75 % 6.24 % 8/1/2025 2,000,000 1,990,924 2,001,880
Cable & Wireless Communications Limited
Telecommunications Term Loan B4 Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 1/30/2026 2,500,000 2,497,271 2,488,200
Cable One Inc.
Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.24 % 5/1/2024 492,500 492,049 490,348
Calceus Acquisition Inc.
Consumer goods:Non-durable Term Loan B Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.99 % 2/12/2025 1,000,000 987,601 995,420
Callaway Golf Company
Retail Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 1/2/2026 750,000 735,504 753,127
Canyon Valor Companies Inc.
Media: Advertising Printing & Publishing Term Loan B Loan 3M USD LIBOR+ 2.75 % 0.00 % 5.36 % 6/16/2023 939,191 936,843 929,019
Capital Automotive L.P.
Banking Finance Insurance & Real Estate First Lien Term Loan Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.99 % 3/25/2024 478,053 476,166 470,284
CareerBuilder LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 6.75 % 1.00 % 9.36 % 7/31/2023 2,266,211 2,224,216 2,257,713
Casa Systems Inc.
Telecommunications Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 12/20/2023 1,470,000 1,459,340 1,451,625
CCS-CMGC Holdings Inc.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.99 % 10/1/2025 2,500,000 2,476,183 2,393,750
Cengage Learning Inc.
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.74 % 6/7/2023 1,462,458 1,450,545 1,343,999
CenturyLink Inc.
Telecommunications Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 1/31/2025 3,970,000 3,946,810 3,904,813
CEOC LLC
Hotel Gaming & Leisure Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.49 % 10/4/2024 990,000 990,000 980,734
Charter Communications Operating LLC.
Media: Broadcasting & Subscription Term Loan (12/17) Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.49 % 4/30/2025 1,584,000 1,582,488 1,578,773
Compass Power Generation L.L.C.
Utilities: Electric Term Loan B (08/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 12/20/2024 1,953,052 1,948,283 1,948,775
Compuware Corporation
High Tech Industries Term Loan (08/18) Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 8/22/2025 500,000 498,788 501,250
Concordia International Corp.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 5.50 % 1.00 % 7.99 % 9/6/2024 1,207,930 1,145,627 1,145,190
Consolidated Aerospace Manufacturing LLC
Aerospace & Defense Term Loan (1st Lien) Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 8/11/2022 2,418,750 2,412,445 2,409,680
Consolidated Communications Inc.
Telecommunications Term Loan B Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 10/5/2023 1,490,574 1,477,850 1,451,133
Covia Holdings Corporation
Metals & Mining Term Loan Loan 3M USD LIBOR+ 3.75 % 1.00 % 6.36 % 6/2/2025 995,000 995,000 844,685
CPI Acquisition Inc
Banking Finance Insurance & Real Estate Term Loan B (1st Lien) Loan 6M USD LIBOR+ 4.50 % 1.00 % 7.19 % 8/17/2022 1,436,782 1,424,775 894,396
Crown Subsea Communications Holding Inc
Construction & Building Term Loan Loan 1M USD LIBOR+ 6.00 % 0.00 % 8.49 % 11/3/2025 4,000,000 3,957,810 3,975,000
CSC Holdings LLC
Media: Broadcasting & Subscription Term Loan B (03/17) Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 7/17/2025 1,994,924 1,970,647 1,967,853
CSC Holdings LLC
Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 1/15/2026 500,000 498,804 493,250
CT Technologies Intermediate Hldgs Inc
Healthcare & Pharmaceuticals New Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.74 % 12/1/2021 1,440,263 1,433,574 1,229,984
Cumulus Media New Holdings Inc.
Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.99 % 5/13/2022 335,864 333,061 329,006
Daseke Companies Inc.
Transportation: Cargo Replacement Term Loan Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.49 % 2/27/2024 1,975,651 1,965,011 1,965,772
Dealer Tire LLC
Automotive Term Loan B Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.99 % 12/12/2025 3,000,000 2,892,107 3,000,000
Delek US Holdings Inc.
Utilities: Oil & Gas Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 3/31/2025 2,992,462 2,956,032 2,952,572
Dell International L.L.C.
High Tech Industries Term Loan B Loan 1M USD LIBOR+ 2.00 % 0.75 % 4.49 % 9/7/2023 3,974,937 3,922,161 3,960,031
Delta 2 (Lux) SARL
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.99 % 2/1/2024 1,318,289 1,315,251 1,289,036
DHX Media Ltd.
Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 12/29/2023 332,042 330,546 320,005
Digital Room Holdings Inc.
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.49 % 12/29/2023 3,101,339 3,074,510 3,070,325
Dole Food Company Inc.
Beverage Food & Tobacco Term Loan B Loan Prime+ 2.75 % 1.00 % 3.75 % 4/8/2024 481,250 479,436 473,733
Drew Marine Group Inc.
Transportation: Consumer First Lien Term Loan Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 11/19/2020 2,841,040 2,828,735 2,819,732
DTZ U.S. Borrower LLC
Construction & Building Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 8/21/2025 5,985,000 5,957,110 5,936,402
Dynatrace LLC
High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 8/22/2025 1,000,000 1,000,000 994,580
Eagletree-Carbide Acquisition Corp.
High Tech Industries Term Loan Loan 3M USD LIBOR+ 4.25 % 1.00 % 6.86 % 8/28/2024 3,967,480 3,948,716 3,927,805
Education Management II LLC (a)
Services: Consumer Term Loan A Loan Prime+ 5.50 % 1.00 % 6.50 % 7/2/2020 423,861 419,105 8,477
Education Management II LLC (a)
Services: Consumer Term Loan B Loan Prime+ 8.50 % 1.00 % 9.50 % 7/2/2020 954,307 945,813 840
EIG Investors Corp.
High Tech Industries Term Loan (06/18) Loan 3M USD LIBOR+ 3.75 % 1.00 % 6.36 % 2/9/2023 2,410,685 2,394,658 2,397,282
Emerald 2 Ltd. (Eagle US / Emerald Newco / ERM Canada / ERM US)
Environmental Industries Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.61 % 5/14/2021 988,553 985,300 978,745
Emerald Performance Materials LLC
Chemicals Plastics & Rubber Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 7/30/2021 475,777 474,869 469,682
Endo Luxembourg Finance Company I S.a.r.l.
Healthcare & Pharmaceuticals Term Loan B (4/17) Loan 1M USD LIBOR+ 4.25 % 0.75 % 6.74 % 4/29/2024 3,977,405 3,952,044 3,978,240
Energy Acquisition LP
Capital Equipment Term Loan (6/18) Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.86 % 6/26/2025 1,990,000 1,971,730 1,910,400
Envision Healthcare Corporation
Healthcare & Pharmaceuticals Term Loan B (06/18) Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 10/10/2025 5,000,000 4,988,764 4,807,800
Evergreen AcqCo 1 LP
Retail Term Loan C Loan 3M USD LIBOR+ 3.75 % 1.25 % 6.36 % 7/9/2019 935,156 934,453 883,723
EWT Holdings III Corp.
Capital Equipment Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 12/20/2024 2,809,641 2,798,064 2,806,129
Extreme Reach Inc.
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 6.25 % 1.00 % 8.74 % 2/7/2020 5,492,555 5,432,541 5,351,836
Fastener Acquisition Inc.
Construction & Building Term Loan B Loan 3M USD LIBOR+ 4.25 % 1.00 % 6.86 % 3/28/2025 496,250 493,979 486,325
FinCo I LLC
Banking Finance Insurance & Real Estate 2018 Term Loan B Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.49 % 12/27/2022 415,611 414,701 412,236
First Eagle Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan B (10/18) Loan 3M USD LIBOR+ 2.75 % 0.00 % 5.36 % 12/2/2024 5,000,000 4,973,959 4,987,500
Fitness International LLC
Services: Consumer Term Loan B (4/18) Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 4/18/2025 2,776,214 2,759,824 2,755,392
Franklin Square Holdings L.P.
Banking Finance Insurance & Real Estate Term Loan Loan 2M USD LIBOR+ 2.50 % 0.00 % 5.07 % 8/1/2025 4,488,750 4,457,527 4,474,745
Fusion Connect Inc.
Telecommunications Term Loan B Loan 3M USD LIBOR+ 7.50 % 1.00 % 10.11 % 5/4/2023 1,925,000 1,857,064 1,732,500
GBT Group Services B.V.
Hotel Gaming & Leisure Term Loan Loan 3M USD LIBOR+ 2.50 % 0.00 % 5.11 % 8/13/2025 4,488,750 4,487,571 4,466,306
GC EOS Buyer Inc.
Automotive Term Loan B (06/18) Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 8/1/2025 2,992,500 2,964,056 2,955,094
General Nutrition Centers Inc.
Retail FILO Term Loan Loan 1M USD LIBOR+ 7.00 % 0.00 % 9.49 % 1/3/2023 585,849 585,849 593,172
General Nutrition Centers Inc.
Retail Term Loan B2 Loan Prime+ 9.16 % 0.75 % 9.91 % 3/4/2021 1,035,789 1,035,789 1,008,341
GI Chill Acquisition LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 4.00 % 0.00 % 6.61 % 8/6/2025 2,493,750 2,482,280 2,487,516
GI Revelation Acquisition LLC
Services: Business Term Loan Loan 1M USD LIBOR+ 5.00 % 0.00 % 7.49 % 4/16/2025 1,244,373 1,238,702 1,231,930
Gigamon Inc.
Services: Business Term Loan B Loan 3M USD LIBOR+ 4.25 % 1.00 % 6.86 % 12/27/2024 1,980,000 1,962,889 1,952,775
Global Tel*Link Corporation
Telecommunications Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.74 % 11/28/2025 3,070,455 3,070,455 3,070,455
Go Wireless Inc.
Telecommunications Term Loan Loan 1M USD LIBOR+ 6.50 % 1.00 % 8.99 % 12/22/2024 3,380,519 3,331,962 3,250,944
GoodRX Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 10/10/2025 3,000,000 2,992,953 2,976,570
Goodyear Tire & Rubber Company The
Chemicals Plastics & Rubber Second Lien Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.49 % 3/7/2025 2,000,000 2,000,000 1,956,660
Grosvenor Capital Management Holdings LLLP
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.24 % 3/28/2025 920,941 916,777 916,337
Guidehouse LLP
Aerospace & Defense Term Loan Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 5/1/2025 1,990,000 1,985,566 1,965,125
Hargray Communications Group Inc.
Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 5/16/2024 985,000 983,012 973,308
Harland Clarke Holdings Corp.
Media: Advertising Printing & Publishing Term Loan Loan 3M USD LIBOR+ 4.75 % 1.00 % 7.36 % 11/3/2023 1,833,245 1,824,008 1,741,583
HD Supply Waterworks Ltd.
Construction & Building Term Loan Loan 6M USD LIBOR+ 3.00 % 1.00 % 5.69 % 8/1/2024 493,750 492,687 489,430
Helix Gen Funding LLC
Energy: Electricity Term Loan B (02/17) Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 6/3/2024 264,030 263,460 256,204
HLF Financing SaRL LLC
Consumer goods:Non-durable Term Loan B (08/18) Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 8/18/2025 3,990,000 3,973,021 3,990,000
Hoffmaster Group Inc.
Forest Products & Paper Term Loan B1 Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 11/21/2023 1,074,390 1,077,199 1,070,361
Holley Purchaser Inc.
Automotive Term Loan B Loan 3M USD LIBOR+ 5.00 % 0.00 % 7.61 % 10/24/2025 2,500,000 2,475,886 2,450,000
Hostess Brands LLC
Beverage Food & Tobacco Cov-Lite Term Loan B Loan 3M USD LIBOR+ 2.25 % 0.75 % 4.86 % 8/3/2022 1,467,734 1,464,418 1,448,169
Hudson River Trading LLC
Banking Finance Insurance & Real Estate Term Loan B (10/18) Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 4/3/2025 3,980,025 3,958,223 3,960,125
Hyland Software Inc.
High Tech Industries Term Loan 3 Loan 1M USD LIBOR+ 3.50 % 0.75 % 5.99 % 7/1/2024 1,586,222 1,584,204 1,588,205
Hyperion Refinance S.a.r.l.
Banking Finance Insurance & Real Estate Tem Loan (12/17) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 12/20/2024 2,229,370 2,219,751 2,225,647
Idera Inc.
High Tech Industries Term Loan B Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.99 % 6/28/2024 1,964,786 1,947,430 1,962,330
IG Investments Holdings LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 3.50 % 1.00 % 6.11 % 5/23/2025 3,398,256 3,380,175 3,382,115
Inmar Inc.
Services: Business Term Loan B Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 5/1/2024 3,492,500 3,398,589 3,389,471
Isagenix International LLC
Beverage Food & Tobacco Term Loan Loan 3M USD LIBOR+ 5.75 % 1.00 % 8.36 % 6/16/2025 2,950,000 2,895,451 2,787,750
Jill Holdings LLC
Retail Term Loan (1st Lien) Loan 3M USD LIBOR+ 5.00 % 1.00 % 7.61 % 5/9/2022 1,859,387 1,854,837 1,830,343
JP Intermediate B LLC
Consumer goods:Non-durable Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 8.11 % 11/20/2025 4,937,500 4,883,059 4,702,969
Kinetic Concepts Inc.
Healthcare & Pharmaceuticals 1/17 USD Term Loan Loan 3M USD LIBOR+ 3.25 % 1.00 % 5.86 % 2/2/2024 2,364,000 2,355,394 2,357,499
KUEHG Corp.
Services: Consumer Term LoanB-3 Loan 3M USD LIBOR+ 3.75 % 1.00 % 6.36 % 2/21/2025 497,500 496,313 493,023
Lakeland Tours LLC
Hotel Gaming & Leisure Term Loan B Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.61 % 12/16/2024 2,482,494 2,474,016 2,458,836
Lannett Company Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 5.38 % 1.00 % 7.87 % 11/25/2022 2,546,382 2,513,728 2,338,419
Learfield Communications LLC
Media: Advertising Printing & Publishing Initial Term Loan(A-L Parent) Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 12/1/2023 490,000 488,374 488,775
Lighthouse Network LLC
Banking Finance Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 4.50 % 1.00 % 7.11 % 12/2/2024 3,415,500 3,402,695 3,402,692
Lightstone Holdco LLC
Energy: Electricity Term Loan B Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 1/30/2024 1,353,009 1,350,840 1,320,199
Lightstone Holdco LLC
Energy: Electricity Term Loan C Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 1/30/2024 74,592 74,478 72,783
Lindblad Expeditions Inc.
Hotel Gaming & Leisure US 2018 Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 3/27/2025 398,000 397,117 397,005
Lindblad Expeditions Inc.
Hotel Gaming & Leisure Cayman Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 3/27/2025 99,500 99,279 99,251
Liquidnet Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 7/15/2024 3,154,276 3,144,386 3,150,333
LPL Holdings Inc.
Banking Finance Insurance & Real Estate Incremental Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 9/23/2024 1,723,805 1,720,511 1,708,721
McAfee LLC
Services: Business Term Loan B Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 9/30/2024 2,690,156 2,661,137 2,694,810
McDermott International Inc.
Construction & Building Term Loan B Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.49 % 5/12/2025 1,985,000 1,948,934 1,907,625
McGraw-Hill Global Education Holdings LLC
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 5/4/2022 974,920 972,268 897,229
MedPlast Holdings Inc.
Healthcare & Pharmaceuticals Term Loan (06/18) Loan 3M USD LIBOR+ 3.75 % 0.00 % 6.36 % 7/2/2025 498,750 496,426 500,620
Meredith Corporation
Media: Advertising Printing & Publishing Term Loan B (10/18) Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 1/31/2025 681,944 680,552 681,563
Messer Industries LLC
Chemicals Plastics & Rubber Term Loan Loan 3M USD LIBOR+ 2.50 % 0.00 % 5.11 % 2/5/2026 3,000,000 2,992,500 2,977,500
Michaels Stores Inc.
Retail Term Loan B Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.99 % 1/30/2023 2,628,816 2,617,545 2,600,898
Midwest Physician Administrative Services LLC
Healthcare & Pharmaceuticals Term Loan (2/18) Loan 1M USD LIBOR+ 2.75 % 0.75 % 5.24 % 8/15/2024 977,985 973,790 958,836
Milk Specialties Company
Beverage Food & Tobacco Term Loan (2/17) Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 8/16/2023 3,969,672 3,905,366 3,946,529
MKS Instruments Inc.
High Tech Industries Term LoanB-5 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 2/2/2026 1,000,000 990,327 998,750
MLN US HoldCo LLC
Telecommunications Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 11/28/2025 1,000,000 997,824 992,500
MRC Global (US) Inc.
Metals & Mining Term Loan B2 Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 9/20/2024 495,000 493,864 495,000
NAI Entertainment Holdings LLC
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.99 % 5/8/2025 997,500 995,282 989,600
Natgasoline LLC
Chemicals Plastics & Rubber Term Loan Loan 3M USD LIBOR+ 3.50 % 0.00 % 6.11 % 11/14/2025 500,000 497,720 500,625
National Mentor Holdings Inc.
Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.86 % 2/5/2026 2,000,000 1,980,000 2,005,840
Navistar Financial Corporation
Automotive Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 7/30/2025 1,990,000 1,980,604 1,982,538
NeuStar Inc.
Telecommunications Term Loan B4 (03/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 8/8/2024 3,992,424 3,925,243 3,822,746
New Media Holdings II LLC
Media: Diversified & Production Term Loan Loan 1M USD LIBOR+ 6.25 % 1.00 % 8.74 % 7/14/2022 5,973,699 5,959,159 5,921,430
NMI Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.75 % 1.00 % 7.24 % 5/23/2023 3,489,981 3,494,699 3,489,981
Novetta Solutions LLC
Aerospace & Defense Term Loan Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.49 % 10/17/2022 1,939,870 1,928,782 1,898,648
Novetta Solutions LLC
Aerospace & Defense Second Lien Term Loan Loan 1M USD LIBOR+ 8.50 % 1.00 % 10.99 % 10/16/2023 1,000,000 993,349 945,000
NPC International Inc.
Beverage Food & Tobacco Term Loan Loan 2M USD LIBOR+ 3.50 % 1.00 % 6.07 % 4/19/2024 492,500 492,068 461,719
Ocean Bidco Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 2M USD LIBOR+ 4.75 % 1.00 % 7.32 % 3/21/2025 473,186 470,976 464,115
OCI Partners LP
Chemicals Plastics & Rubber Term Loan B (2/18) Loan 3M USD LIBOR+ 4.00 % 0.00 % 6.61 % 3/13/2025 3,067,196 3,045,069 3,059,528
Office Depot Inc.
Retail Term Loan B Loan 1M USD LIBOR+ 5.25 % 1.00 % 7.74 % 11/8/2022 2,909,851 2,888,913 2,971,685
Onex Carestream Finance LP
High Tech Industries Term Loan Loan 1M USD LIBOR+ 5.75 % 1.00 % 8.24 % 2/28/2021 2,834,110 2,822,053 2,780,970
Outcomes Group Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 3M USD LIBOR+ 3.50 % 0.00 % 6.11 % 10/24/2025 500,000 498,833 493,125
Owens & Minor Distribution Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 4/30/2025 497,500 488,393 420,800
P2 Upstream Acquisition Co.
High Tech Industries Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.61 % 10/30/2020 945,558 943,988 929,011
Peraton Corp.
Aerospace & Defense Term Loan Loan 3M USD LIBOR+ 5.25 % 1.00 % 7.86 % 4/29/2024 1,970,000 1,962,137 1,915,825
PGX Holdings Inc.
Services: Consumer Term Loan Loan 1M USD LIBOR+ 5.25 % 1.00 % 7.74 % 9/29/2020 2,674,370 2,667,939 2,614,197
PI UK Holdco II Limited
Services: Business Term Loan B1 (PI UK Holdco II) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 1/3/2025 1,488,750 1,481,083 1,473,237
Plastipak Packaging Inc
Containers Packaging & Glass Term Loan B (04/18) Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.99 % 10/15/2024 987,500 983,130 974,100
Presidio Inc.
Services: Business Term Loan B 2017 Loan 3M USD LIBOR+ 2.75 % 1.00 % 5.36 % 2/2/2024 1,697,600 1,663,332 1,678,078
Prime Security Services Borrower LLC
Services: Consumer Refi Term LoanB-1 Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.24 % 5/2/2022 1,950,361 1,943,928 1,943,925
Priority Payment Systems Holdings LLC
High Tech Industries Term Loan Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.49 % 1/3/2023 1,150,910 1,145,156 1,145,881
Priority Payment Systems Holdings LLC
High Tech Industries Delayed Draw Term Loan Loan 3M USD LIBOR+ 5.00 % 1.00 % 7.61 % 1/3/2023 —   —   —
Project Accelerate Parent LLC
Services: Business Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.74 % 1/2/2025 1,985,000 1,976,356 1,985,000
Prometric Holdings Inc.
Services: Business Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 1/29/2025 496,250 494,124 492,528
Quad/Graphics Inc.
Media: Advertising Printing & Publishing Term Loan B (12/18) Loan 1M USD LIBOR+ 5.00 % 0.00 % 7.49 % 2/2/2026 4,500,000 4,434,606 4,483,125
Rackspace Hosting Inc.
High Tech Industries Term Loan B Loan 3M USD LIBOR+ 3.00 % 1.00 % 5.61 % 11/3/2023 1,491,203 1,480,810 1,418,969
Radio Systems Corporation
Consumer goods: Durable Term Loan Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.24 % 5/2/2024 1,477,500 1,477,500 1,457,184
Radiology Partners Inc.
Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.75 % 0.00 % 7.36 % 7/9/2025 1,000,000 995,568 1,005,000
Research Now Group Inc.
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 5.50 % 1.00 % 7.99 % 12/20/2024 3,967,481 3,836,608 3,942,684
Resolute Investment Managers Inc.
Banking Finance Insurance & Real Estate Term Loan (10/17) Loan 3M USD LIBOR+ 3.25 % 1.00 % 5.86 % 4/29/2022 2,709,661 2,712,126 2,713,049
Restaurant Technologies Inc.
Beverage Food & Tobacco Term Loan (9/18) Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 10/1/2025 1,000,000 997,720 999,380
Revspring Inc.
Services: Business Term Loan B Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.86 % 10/10/2025 1,000,000 997,767 985,000
Reynolds Group Holdings Inc.
Metals & Mining Term Loan (01/17) Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 2/6/2023 1,725,912 1,725,912 1,718,369
RGIS Services LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 7.50 % 1.00 % 10.11 % 3/31/2023 486,033 480,179 415,558
Robertshaw US Holding Corp.
Consumer goods: Durable Term Loan B Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 2/28/2025 992,500 990,321 929,228
Rocket Software Inc.
High Tech Industries Term Loan (11/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.74 % 11/28/2025 4,000,000 3,982,916 4,000,000
Rovi Solutions Corporation
Media: Diversified & Production Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.75 % 4.99 % 7/2/2021 1,332,669 1,330,256 1,311,013
Russell Investments US Institutional Holdco Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 6/1/2023 4,184,784 4,064,980 4,142,936
Sahara Parent Inc.
High Tech Industries Term Loan B (11/18) Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 8/16/2024 1,975,050 1,956,153 1,967,031
Sally Holdings LLC
Retail Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 7/5/2024 987,455 983,210 973,877
Sally Holdings LLC
Retail Term Loan (Fixed) Loan Fixed 4.50 % 0.00 % 4.50 % 7/5/2024 1,000,000 996,030 963,750
Savage Enterprises LLC
Transportation: Cargo Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 8/1/2025 3,823,951 3,774,062 3,836,684
SCS Holdings I Inc.
High Tech Industries Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.74 % 10/31/2022 3,393,482 3,378,749 3,401,966
Seadrill Operating LP
Energy: Oil & Gas Term Loan B Loan 3M USD LIBOR+ 6.00 % 1.00 % 8.61 % 2/21/2021 915,243 888,341 763,084
SG Acquisition Inc.
Banking Finance Insurance & Real Estate Term Loan (Safe-Guard) Loan 3M USD LIBOR+ 5.00 % 1.00 % 7.61 % 3/29/2024 1,660,000 1,647,194 1,647,550
Shearer’s Foods LLC
Beverage Food & Tobacco Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.74 % 6/30/2021 2,925,531 2,916,771 2,898,704
Shutterfly Inc.
Media: Advertising Printing & Publishing Term Loan B2 Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 8/19/2024 3,017,873 2,966,805 2,981,417
Sirva Worldwide Inc.
Transportation: Cargo Term Loan B Loan 3M USD LIBOR+ 5.50 % 0.00 % 8.11 % 8/4/2025 2,500,000 2,471,352 2,443,750
SMB Shipping Logistics LLC
Transportation: Consumer Term Loan B Loan 6M USD LIBOR+ 4.00 % 1.00 % 6.69 % 2/2/2024 1,969,937 1,968,013 1,953,528
SP PF Buyer LLC
Consumer goods: Durable Term Loan B Loan 3M USD LIBOR+ 4.50 % 0.00 % 7.11 % 12/19/2025 2,000,000 1,921,772 1,970,000
SRAM LLC
Consumer goods: Durable Term Loan Loan Prime+ 2.73 % 1.00 % 3.73 % 3/15/2024 1,984,685 1,970,345 1,967,319
SS&C Technologies Inc.
Services: Business Term Loan B3 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 4/16/2025 616,068 614,712 612,815
SS&C Technologies Inc.
Services: Business Term Loan B4 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 4/16/2025 235,988 235,469 234,742
SS&C Technologies Inc.
Services: Business Term LoanB-5 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 4/16/2025 498,743 497,588 496,189
SSH Group Holdings Inc.
Consumer goods:Non-durable Term Loan Loan 2M USD LIBOR+ 4.25 % 0.00 % 6.82 % 7/30/2025 1,995,000 1,990,196 1,970,063
Staples Inc.
Retail Term Loan B (07/17) Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 9/12/2024 1,975,000 1,970,996 1,959,240
Starfruit US Holdco LLC
Chemicals Plastics & Rubber Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 10/1/2025 500,000 497,640 496,375
Steak N Shake Operations Inc.
Beverage Food & Tobacco Term Loan Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 3/19/2021 834,991 832,242 638,768
Sybil Software LLC
High Tech Industries Term Loan B (4/18) Loan 3M USD LIBOR+ 2.50 % 1.00 % 5.11 % 9/29/2023 677,351 674,400 676,220
Tenneco Inc
Capital Equipment Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 10/1/2025 1,500,000 1,485,848 1,484,070
Ten-X LLC
Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 9/30/2024 1,980,000 1,978,059 1,955,250
TGG TS Acquisition Company
Media: Diversified & Production Term Loan (12/18) Loan 3M USD LIBOR+ 6.50 % 0.00 % 9.11 % 12/15/2025 3,000,000 2,854,156 2,981,250
The Edelman Financial Center LLC
Banking Finance Insurance & Real Estate Term Loan B (06/18) Loan 3M USD LIBOR+ 3.25 % 0.00 % 5.86 % 7/21/2025 1,250,000 1,244,166 1,247,138
Thor Industries Inc.
Automotive Term Loan (USD) Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 2/2/2026 2,830,276 2,797,635 2,734,754
Topgolf International Inc.
Hotel Gaming & Leisure Term Loan (02/19) Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.99 % 2/6/2026 500,000 495,177 499,375
Townsquare Media Inc.
Media: Broadcasting & Subscription Term Loan B (02/17) Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 4/1/2022 881,975 879,219 868,745
Transdigm Inc.
Aerospace & Defense Term Loan G Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.99 % 8/22/2024 4,148,194 4,154,661 4,087,381
Travel Leaders Group LLC
Hotel Gaming & Leisure Term Loan B (08/18) Loan 1M USD LIBOR+ 4.00 % 0.00 % 6.49 % 1/25/2024 2,487,500 2,482,802 2,493,719
TRC Companies Inc.
Services: Business Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 6/21/2024 3,411,364 3,399,559 3,368,722
Trico Group LLC
Containers Packaging & Glass Incremental Term Loan Loan Prime+ 6.00 % 1.00 % 7.00 % 2/2/2024 4,943,750 4,804,906 4,696,562
Truck Hero Inc.
Transportation: Cargo First Lien Term Loan Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 4/22/2024 2,957,469 2,937,874 2,890,926
Trugreen Limited Partnership
Services: Consumer Term Loan B (07/17) Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 4/13/2023 488,813 483,230 490,034
Twin River Management Group Inc.
Hotel Gaming & Leisure Term Loan Loan 3M USD LIBOR+ 3.50 % 1.00 % 6.11 % 7/10/2020 713,415 713,888 712,223
United Natural Foods Inc.
Beverage Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.74 % 10/22/2025 3,500,000 3,278,105 3,119,375
Univar USA Inc.
Chemicals Plastics & Rubber Term Loan B3 (11/17) Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 7/1/2024 4,250,492 4,231,419 4,241,183
Univision Communications Inc.
Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.24 % 3/15/2024 2,746,369 2,733,489 2,557,556
UOS LLC
Capital Equipment Term Loan B Loan 1M USD LIBOR+ 5.50 % 1.00 % 7.99 % 4/18/2023 591,247 593,692 594,203
UPC Financing Partnership
Media: Broadcasting & Subscription Term Loan (10/17) Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.99 % 1/15/2026 832,911 832,042 831,687
VeriFone Systems Inc.
Banking Finance Insurance & Real Estate Term Loan (7/18) Loan 3M USD LIBOR+ 4.00 % 0.00 % 6.61 % 8/20/2025 5,486,250 5,456,319 5,464,689
Verra Mobility Corp.
Construction & Building Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 3/3/2025 496,250 494,043 497,903
VFH Parent LLC
Banking Finance Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 3.50 % 0.00 % 6.11 % 1/30/2026 3,000,000 2,985,000 3,006,570
Virtus Investment Partners Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.75 % 4.74 % 6/3/2024 3,836,368 3,834,675 3,820,371
Vistra Operations Company LLC
Utilities: Electric 2018 Incremental Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.49 % 12/31/2025 995,000 993,884 992,095
Vizient Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.24 % 2/13/2023 296,814 291,350 295,923
Wand NewCo 3 Inc.
Automotive Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 2/5/2026 250,000 247,562 250,625
Web.Com Group Inc.
High Tech Industries Term Loan B (08/18) Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 10/10/2025 500,000 498,856 496,250
WeddingWire Inc.
Services: Consumer Term Loan Loan 3M USD LIBOR+ 4.50 % 0.00 % 7.11 % 12/19/2025 4,000,000 3,993,119 3,995,000
WEI Sales LLC
Beverage Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 3/31/2025 496,250 495,108 495,009
Weight Watchers International Inc.
Services: Consumer Term Loan B Loan 3M USD LIBOR+ 4.75 % 0.75 % 7.36 % 11/29/2024 1,900,000 1,867,434 1,839,827
West Corporation
Telecommunications Term Loan B Loan 3M USD LIBOR+ 3.50 % 1.00 % 6.11 % 10/10/2024 4,241,234 4,068,929 4,003,830
Western Dental Services Inc.
Retail Term Loan (12/18) Loan 1M USD LIBOR+ 5.25 % 1.00 % 7.74 % 6/30/2023 2,463,734 2,446,863 2,402,141
Western Digital Corporation
High Tech Industries Term LoanB-4 Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.24 % 4/29/2023 1,299,622 1,266,499 1,274,605
Wirepath LLC
Consumer goods:Non-durable Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.61 % 8/5/2024 2,985,044 2,957,351 2,925,343
Wynn Resorts Limited
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 10/30/2024 1,000,000 997,579 986,500
YS Garments LLC
Retail Term Loan Loan 1W USD LIBOR+ 6.00 % 1.00 % 8.41 % 8/9/2024 1,987,500 1,969,194 1,952,719
Zep Inc.
Chemicals Plastics & Rubber Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.61 % 8/12/2024 2,468,750 2,458,786 2,139,592
Zest Acquisition Corp.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 3/14/2025 992,500 988,123 918,062

$ 509,676,701 $ 498,405,060

Number of
Shares Cost Fair Value
Cash and cash equivalents

U.S. Bank Money Market (b)
18,495,653 $ 18,495,653 $ 18,495,653

Total cash and cash equivalents
18,495,653 $ 18,495,653 $ 18,495,653

Issuer Name

Industry

Asset Name

Asset
Type

Reference Rate/Spread
LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number of
Shares Cost Fair Value
Education Management II LLC
Services: Consumer A-1 Preferred Shares Equity 6,692 $ 669,214 $ 13,384
Education Management II LLC
Services: Consumer A-2 Preferred Shares Equity 18,975 1,897,538 1,670
New Millennium Holdco, Inc.
Healthcare & Pharmaceuticals Common Stock Equity 14,813 964,466 637
24 Hour Fitness Worldwide Inc.
Services: Consumer Term Loan (5/18) Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 5/30/2025 $ 2,990,000 2,978,426 2,987,518
ABBCon-Cise Optical Group LLC
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.49 % 6/15/2023 2,103,445 2,080,167 2,037,712
Achilles Acquisition LLC
Banking Finance Insurance & Real Estate Term Loan (09/18) Loan 1M USD LIBOR+ 4.00 % 0.00 % 6.49 % 10/13/2025 6,000,000 5,985,885 5,962,500
Acosta Inc.
Media: Advertising Printing & Publishing Term Loan B (1st Lien) Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 9/27/2021 1,915,375 1,909,171 957,687
ADMI Corp.
Services: Consumer Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 4/30/2025 1,990,000 1,981,204 1,968,607
Advantage Sales & Marketing Inc.
Services: Business First Lien Term Loan Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 7/23/2021 2,396,156 2,394,791 2,098,889
Advantage Sales & Marketing Inc.
Services: Business Term Loan B Incremental Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 7/23/2021 494,975 487,610 431,247
Aegis Toxicology Sciences Corporation
Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 8.11 % 5/9/2025 3,990,000 3,954,925 3,850,350
Agiliti Health Inc.
Healthcare & Pharmaceuticals Delayed Draw Term Loan Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 1/5/2026 500,000 500,000 499,375
Agrofresh Inc.
Beverage Food & Tobacco Term Loan Loan 3M USD LIBOR+ 4.75 % 1.00 % 7.36 % 7/30/2021 2,919,744 2,915,422 2,883,247
AI Mistral (Luxembourg) Subco Sarl
High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 3/11/2024 491,250 491,250 455,020
AIS Holdco LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.00 % 7.61 % 8/15/2025 2,484,375 2,472,344 2,422,266
Akorn Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 5.50 % 1.00 % 7.99 % 4/16/2021 398,056 397,485 316,455
Albertson’s LLC
Retail Term Loan B7 Loan 1M USD LIBOR+ 3.00 % 0.75 % 5.49 % 11/17/2025 4,151,511 4,140,731 4,124,733
Alchemy US Holdco 1 LLC
Metals & Mining Term Loan Loan 6M USD LIBOR+ 5.50 % 0.00 % 8.19 % 10/10/2025 2,000,000 1,971,432 1,990,000
Alera Group Intermediate Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 8/1/2025 498,750 497,585 499,997
Alion Science and Technology Corporation
Aerospace & Defense Term Loan B (1st Lien) Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.99 % 8/19/2021 3,626,521 3,620,261 3,614,445
Allen Media LLC
Media: Diversified & Production Term Loan B Loan 3M USD LIBOR+ 6.50 % 1.00 % 7.50 % 8/30/2023 3,000,000 2,931,901 2,872,500
(a)    Security is in default as of February 28, 2019.

Issuer Name

Industry

Asset Name

Asset
Type

Reference Rate/Spread
LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number of
Shares Cost Fair Value
Altisource S.a r.l.
Banking Finance Insurance & Real Estate Term Loan B (03/18) Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.61 % 4/3/2024 1,677,030 1,666,628 1,639,296
Altra Industrial Motion Corp.
Capital Equipment Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.49 % 10/1/2025 1,955,223 1,950,844 1,930,783
American Greetings Corporation
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.99 % 4/5/2024 4,982,450 4,979,868 4,929,536
American Residential Services LLC
Services: Consumer Term Loan B Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 6/30/2022 3,966,883 3,954,749 3,907,380
Amynta Agency Borrower Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.00 % 0.00 % 6.49 % 2/28/2025 3,497,500 3,455,778 3,410,063
Anastasia Parent LLC
Consumer goods:Non-durable Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 8/11/2025 997,500 992,909 944,732
Anchor Glass Container Corporation
Containers Packaging & Glass Term Loan (07/17) Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.24 % 12/7/2023 490,038 488,206 392,520
AqGen Ascensus Inc.
Services: Consumer Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 12/5/2022 408,906 408,242 405,839
Aramark Services Inc.
Services: Consumer Term LoanB-2 Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.24 % 3/28/2024 1,294,904 1,294,904 1,287,212
Arctic Glacier U.S.A. Inc.
Beverage Food & Tobacco Term Loan (3/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 3/20/2024 3,350,967 3,329,140 3,283,948
Aretec Group Inc.
Banking Finance Insurance & Real Estate Term Loan (10/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.74 % 10/1/2025 2,000,000 1,995,758 1,975,000
ASG Technologies Group Inc.
High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 7/31/2024 493,763 491,798 485,739
AssetMark Financial Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 3M USD LIBOR+ 3.50 % 0.00 % 6.11 % 11/14/2025 2,500,000 2,496,120 2,490,625
Astoria Energy LLC
Energy: Electricity Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 12/24/2021 1,406,149 1,397,673 1,407,612
Asurion LLC
Banking Finance Insurance & Real Estate Term LoanB-4 (Replacement) Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 8/4/2022 2,084,268 2,077,055 2,082,788
Asurion LLC
Banking Finance Insurance & Real Estate Term Loan B6 Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 11/3/2023 497,955 494,277 497,512
Athenahealth Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+ 4.50 % 0.00 % 7.11 % 2/11/2026 2,000,000 1,960,211 1,988,760
Avaya Inc.
Telecommunications Term Loan B Loan 2M USD LIBOR+ 4.25 % 0.00 % 6.82 % 12/16/2024 1,990,000 1,974,743 1,987,015
Avolon TLB Borrower 1 US LLC
Capital Equipment Term Loan B3 Loan 1M USD LIBOR+ 2.00 % 0.75 % 4.49 % 1/15/2025 913,731 909,648 912,763
Ball Metalpack Finco LLC
Containers Packaging & Glass Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 7/31/2025 3,984,987 3,966,751 3,970,044
Bausch Health Companies Inc.
Healthcare & Pharmaceuticals Term Loan B (05/18) Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 6/2/2025 1,752,582 1,745,304 1,752,144
Bausch Health Companies Inc.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 11/27/2025 481,250 476,571 479,310
Blackboard Inc.
High Tech Industries Term Loan B4 Loan 3M USD LIBOR+ 5.00 % 1.00 % 7.61 % 6/30/2021 2,932,500 2,919,562 2,818,866
Blount International Inc.
Forest Products & Paper Term Loan B (09/18) Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 4/12/2023 3,488,756 3,485,266 3,484,395
Blucora Inc.
High Tech Industries Term Loan (11/17) Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 5/22/2024 706,667 703,725 704,900
(b)    Included within cash and cash equivalents in Saratoga CLO’s Statements of Assets and Liabilities as of February 28, 2019.

Issuer Name

Industry

Asset Name

Asset
Type

Reference Rate/Spread
LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number of
Shares Cost Fair Value
Boxer Parent Company Inc.
Services: Business Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.86 % 10/2/2025 2,500,000 2,476,591 2,484,150
Bracket Intermediate Holding Corp.
Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.86 % 9/5/2025 997,500 992,812 985,031
Broadstreet Partners Inc.
Banking Finance Insurance & Real Estate Term Loan B2 Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 11/8/2023 1,035,177 1,032,997 1,032,589
Brookfield WEC Holdings Inc.
Energy: Electricity Term Loan Loan 1M USD LIBOR+ 3.75 % 0.75 % 6.24 % 8/1/2025 2,000,000 1,990,924 2,001,880
Cable & Wireless Communications Limited
Telecommunications Term Loan B4 Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 1/30/2026 2,500,000 2,497,271 2,488,200
Cable One Inc.
Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.24 % 5/1/2024 492,500 492,049 490,348
Calceus Acquisition Inc.
Consumer goods:Non-durable Term Loan B Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.99 % 2/12/2025 1,000,000 987,601 995,420
Callaway Golf Company
Retail Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 1/2/2026 750,000 735,504 753,127
Canyon Valor Companies Inc.
Media: Advertising Printing & Publishing Term Loan B Loan 3M USD LIBOR+ 2.75 % 0.00 % 5.36 % 6/16/2023 939,191 936,843 929,019
Capital Automotive L.P.
Banking Finance Insurance & Real Estate First Lien Term Loan Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.99 % 3/25/2024 478,053 476,166 470,284
CareerBuilder LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 6.75 % 1.00 % 9.36 % 7/31/2023 2,266,211 2,224,216 2,257,713
Casa Systems Inc.
Telecommunications Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 12/20/2023 1,470,000 1,459,340 1,451,625
CCS-CMGC Holdings Inc.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.99 % 10/1/2025 2,500,000 2,476,183 2,393,750
Cengage Learning Inc.
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.74 % 6/7/2023 1,462,458 1,450,545 1,343,999
CenturyLink Inc.
Telecommunications Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 1/31/2025 3,970,000 3,946,810 3,904,813
CEOC LLC
Hotel Gaming & Leisure Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.49 % 10/4/2024 990,000 990,000 980,734
Charter Communications Operating LLC.
Media: Broadcasting & Subscription Term Loan (12/17) Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.49 % 4/30/2025 1,584,000 1,582,488 1,578,773
Compass Power Generation L.L.C.
Utilities: Electric Term Loan B (08/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 12/20/2024 1,953,052 1,948,283 1,948,775
Compuware Corporation
High Tech Industries Term Loan (08/18) Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 8/22/2025 500,000 498,788 501,250
Concordia International Corp.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 5.50 % 1.00 % 7.99 % 9/6/2024 1,207,930 1,145,627 1,145,190
Consolidated Aerospace Manufacturing LLC
Aerospace & Defense Term Loan (1st Lien) Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 8/11/2022 2,418,750 2,412,445 2,409,680
Consolidated Communications Inc.
Telecommunications Term Loan B Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 10/5/2023 1,490,574 1,477,850 1,451,133
Covia Holdings Corporation
Metals & Mining Term Loan Loan 3M USD LIBOR+ 3.75 % 1.00 % 6.36 % 6/2/2025 995,000 995,000 844,685
CPI Acquisition Inc
Banking Finance Insurance & Real Estate Term Loan B (1st Lien) Loan 6M USD LIBOR+ 4.50 % 1.00 % 7.19 % 8/17/2022 1,436,782 1,424,775 894,396
Crown Subsea Communications Holding Inc
Construction & Building Term Loan Loan 1M USD LIBOR+ 6.00 % 0.00 % 8.49 % 11/3/2025 4,000,000 3,957,810 3,975,000
CSC Holdings LLC
Media: Broadcasting & Subscription Term Loan B (03/17) Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 7/17/2025 1,994,924 1,970,647 1,967,853

Issuer Name

Industry

Asset Name

Asset
Type

Reference Rate/Spread
LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number of
Shares Cost Fair Value
CSC Holdings LLC
Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 1/15/2026 500,000 498,804 493,250
CT Technologies Intermediate Hldgs Inc
Healthcare & Pharmaceuticals New Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.74 % 12/1/2021 1,440,263 1,433,574 1,229,984
Cumulus Media New Holdings Inc.
Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.99 % 5/13/2022 335,864 333,061 329,006
Daseke Companies Inc.
Transportation: Cargo Replacement Term Loan Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.49 % 2/27/2024 1,975,651 1,965,011 1,965,772
Dealer Tire LLC
Automotive Term Loan B Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.99 % 12/12/2025 3,000,000 2,892,107 3,000,000
Delek US Holdings Inc.
Utilities: Oil & Gas Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 3/31/2025 2,992,462 2,956,032 2,952,572
Dell International L.L.C.
High Tech Industries Term Loan B Loan 1M USD LIBOR+ 2.00 % 0.75 % 4.49 % 9/7/2023 3,974,937 3,922,161 3,960,031
Delta 2 (Lux) SARL
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.99 % 2/1/2024 1,318,289 1,315,251 1,289,036
DHX Media Ltd.
Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 12/29/2023 332,042 330,546 320,005
Digital Room Holdings Inc.
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.49 % 12/29/2023 3,101,339 3,074,510 3,070,325
Dole Food Company Inc.
Beverage Food & Tobacco Term Loan B Loan Prime+ 2.75 % 1.00 % 3.75 % 4/8/2024 481,250 479,436 473,733
Drew Marine Group Inc.
Transportation: Consumer First Lien Term Loan Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 11/19/2020 2,841,040 2,828,735 2,819,732
DTZ U.S. Borrower LLC
Construction & Building Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 8/21/2025 5,985,000 5,957,110 5,936,402
Dynatrace LLC
High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 8/22/2025 1,000,000 1,000,000 994,580
Eagletree-Carbide Acquisition Corp.
High Tech Industries Term Loan Loan 3M USD LIBOR+ 4.25 % 1.00 % 6.86 % 8/28/2024 3,967,480 3,948,716 3,927,805
Education Management
II LLC (a)
Services: Consumer Term Loan A Loan Prime+ 5.50 % 1.00 % 6.50 % 7/2/2020 423,861 419,105 8,477
Education Management
II LLC (a)
Services: Consumer Term Loan B Loan Prime+ 8.50 % 1.00 % 9.50 % 7/2/2020 954,307 945,813 840
EIG Investors Corp.
High Tech Industries Term Loan (06/18) Loan 3M USD LIBOR+ 3.75 % 1.00 % 6.36 % 2/9/2023 2,410,685 2,394,658 2,397,282
Emerald 2 Ltd. (Eagle US / Emerald Newco / ERM Canada / ERM US)
Environmental Industries Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.61 % 5/14/2021 988,553 985,300 978,745
Emerald Performance Materials LLC
Chemicals Plastics & Rubber Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 7/30/2021 475,777 474,869 469,682
Endo Luxembourg Finance Company I S.a.r.l.
Healthcare & Pharmaceuticals Term Loan B (4/17) Loan 1M USD LIBOR+ 4.25 % 0.75 % 6.74 % 4/29/2024 3,977,405 3,952,044 3,978,240
Energy Acquisition LP
Capital Equipment Term Loan (6/18) Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.86 % 6/26/2025 1,990,000 1,971,730 1,910,400
Envision Healthcare Corporation
Healthcare & Pharmaceuticals Term Loan B (06/18) Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 10/10/2025 5,000,000 4,988,764 4,807,800
Evergreen AcqCo 1 LP
Retail Term Loan C Loan 3M USD LIBOR+ 3.75 % 1.25 % 6.36 % 7/9/2019 935,156 934,453 883,723
EWT Holdings III Corp.
Capital Equipment Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 12/20/2024 2,809,641 2,798,064 2,806,129

Issuer Name

Industry

Asset Name

Asset
Type

Reference Rate/Spread
LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number of
Shares Cost Fair Value
Extreme Reach Inc.
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 6.25 % 1.00 % 8.74 % 2/7/2020 5,492,555 5,432,541 5,351,836
Fastener Acquisition Inc.
Construction & Building Term Loan B Loan 3M USD LIBOR+ 4.25 % 1.00 % 6.86 % 3/28/2025 496,250 493,979 486,325
FinCo I LLC
Banking Finance Insurance & Real Estate 2018 Term Loan B Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.49 % 12/27/2022 415,611 414,701 412,236
First Eagle Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan B (10/18) Loan 3M USD LIBOR+ 2.75 % 0.00 % 5.36 % 12/2/2024 5,000,000 4,973,959 4,987,500
Fitness International LLC
Services: Consumer Term Loan B (4/18) Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 4/18/2025 2,776,214 2,759,824 2,755,392
Franklin Square Holdings L.P.
Banking Finance Insurance & Real Estate Term Loan Loan 2M USD LIBOR+ 2.50 % 0.00 % 5.07 % 8/1/2025 4,488,750 4,457,527 4,474,745
Fusion Connect Inc.
Telecommunications Term Loan B Loan 3M USD LIBOR+ 7.50 % 1.00 % 10.11 % 5/4/2023 1,925,000 1,857,064 1,732,500
GBT Group Services B.V.
Hotel Gaming & Leisure Term Loan Loan 3M USD LIBOR+ 2.50 % 0.00 % 5.11 % 8/13/2025 4,488,750 4,487,571 4,466,306
GC EOS Buyer Inc.
Automotive Term Loan B (06/18) Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 8/1/2025 2,992,500 2,964,056 2,955,094
General Nutrition Centers Inc.
Retail FILO Term Loan Loan 1M USD LIBOR+ 7.00 % 0.00 % 9.49 % 1/3/2023 585,849 585,849 593,172
General Nutrition Centers Inc.
Retail Term Loan B2 Loan Prime+ 9.16 % 0.75 % 9.91 % 3/4/2021 1,035,789 1,035,789 1,008,341
GI Chill Acquisition LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 4.00 % 0.00 % 6.61 % 8/6/2025 2,493,750 2,482,280 2,487,516
GI Revelation Acquisition LLC
Services: Business Term Loan Loan 1M USD LIBOR+ 5.00 % 0.00 % 7.49 % 4/16/2025 1,244,373 1,238,702 1,231,930
Gigamon Inc.
Services: Business Term Loan B Loan 3M USD LIBOR+ 4.25 % 1.00 % 6.86 % 12/27/2024 1,980,000 1,962,889 1,952,775
Global Tel*Link Corporation
Telecommunications Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.74 % 11/28/2025 3,070,455 3,070,455 3,070,455
Go Wireless Inc.
Telecommunications Term Loan Loan 1M USD LIBOR+ 6.50 % 1.00 % 8.99 % 12/22/2024 3,380,519 3,331,962 3,250,944
GoodRX Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 10/10/2025 3,000,000 2,992,953 2,976,570
Goodyear Tire & Rubber Company The
Chemicals Plastics & Rubber Second Lien Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.49 % 3/7/2025 2,000,000 2,000,000 1,956,660
Grosvenor Capital Management Holdings LLLP
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.24 % 3/28/2025 920,941 916,777 916,337
Guidehouse LLP
Aerospace & Defense Term Loan Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 5/1/2025 1,990,000 1,985,566 1,965,125
Hargray Communications Group Inc.
Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 5/16/2024 985,000 983,012 973,308
Harland Clarke Holdings Corp.
Media: Advertising Printing & Publishing Term Loan Loan 3M USD LIBOR+ 4.75 % 1.00 % 7.36 % 11/3/2023 1,833,245 1,824,008 1,741,583
HD Supply Waterworks Ltd.
Construction & Building Term Loan Loan 6M USD LIBOR+ 3.00 % 1.00 % 5.69 % 8/1/2024 493,750 492,687 489,430
Helix Gen Funding LLC
Energy: Electricity Term Loan B (02/17) Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 6/3/2024 264,030 263,460 256,204
HLF Financing SaRL LLC
Consumer goods:Non-durable Term Loan B (08/18) Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 8/18/2025 3,990,000 3,973,021 3,990,000
Hoffmaster Group Inc.
Forest Products & Paper Term Loan B1 Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 11/21/2023 1,074,390 1,077,199 1,070,361
Holley Purchaser Inc.
Automotive Term Loan B Loan 3M USD LIBOR+ 5.00 % 0.00 % 7.61 % 10/24/2025 2,500,000 2,475,886 2,450,000

Issuer Name

Industry

Asset Name

Asset
Type

Reference Rate/Spread
LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number of
Shares Cost Fair Value
Hostess Brands LLC
Beverage Food & Tobacco Cov-Lite Term Loan B Loan 3M USD LIBOR+ 2.25 % 0.75 % 4.86 % 8/3/2022 1,467,734 1,464,418 1,448,169
Hudson River Trading LLC
Banking Finance Insurance & Real Estate Term Loan B (10/18) Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 4/3/2025 3,980,025 3,958,223 3,960,125
Hyland Software Inc.
High Tech Industries Term Loan 3 Loan 1M USD LIBOR+ 3.50 % 0.75 % 5.99 % 7/1/2024 1,586,222 1,584,204 1,588,205
Hyperion Refinance S.a.r.l.
Banking Finance Insurance & Real Estate Tem Loan (12/17) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 12/20/2024 2,229,370 2,219,751 2,225,647
Idera Inc.
High Tech Industries Term Loan B Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.99 % 6/28/2024 1,964,786 1,947,430 1,962,330
IG Investments Holdings LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 3.50 % 1.00 % 6.11 % 5/23/2025 3,398,256 3,380,175 3,382,115
Inmar Inc.
Services: Business Term Loan B Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 5/1/2024 3,492,500 3,398,589 3,389,471
Isagenix International LLC
Beverage Food & Tobacco Term Loan Loan 3M USD LIBOR+ 5.75 % 1.00 % 8.36 % 6/16/2025 2,950,000 2,895,451 2,787,750
Jill Holdings LLC
Retail Term Loan (1st Lien) Loan 3M USD LIBOR+ 5.00 % 1.00 % 7.61 % 5/9/2022 1,859,387 1,854,837 1,830,343
JP Intermediate B LLC
Consumer goods:Non-durable Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 8.11 % 11/20/2025 4,937,500 4,883,059 4,702,969
Kinetic Concepts Inc.
Healthcare & Pharmaceuticals 1/17 USD Term Loan Loan 3M USD LIBOR+ 3.25 % 1.00 % 5.86 % 2/2/2024 2,364,000 2,355,394 2,357,499
KUEHG Corp.
Services: Consumer Term LoanB-3 Loan 3M USD LIBOR+ 3.75 % 1.00 % 6.36 % 2/21/2025 497,500 496,313 493,023
Lakeland Tours LLC
Hotel Gaming & Leisure Term Loan B Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.61 % 12/16/2024 2,482,494 2,474,016 2,458,836
Lannett Company Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 5.38 % 1.00 % 7.87 % 11/25/2022 2,546,382 2,513,728 2,338,419
Learfield Communications LLC
Media: Advertising Printing & Publishing Initial Term Loan(A-L Parent) Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 12/1/2023 490,000 488,374 488,775
Lighthouse Network LLC
Banking Finance Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 4.50 % 1.00 % 7.11 % 12/2/2024 3,415,500 3,402,695 3,402,692
Lightstone Holdco LLC
Energy: Electricity Term Loan B Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 1/30/2024 1,353,009 1,350,840 1,320,199
Lightstone Holdco LLC
Energy: Electricity Term Loan C Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 1/30/2024 74,592 74,478 72,783
Lindblad Expeditions Inc.
Hotel Gaming & Leisure US 2018 Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 3/27/2025 398,000 397,117 397,005
Lindblad Expeditions Inc.
Hotel Gaming & Leisure Cayman Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 3/27/2025 99,500 99,279 99,251
Liquidnet Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 7/15/2024 3,154,276 3,144,386 3,150,333
LPL Holdings Inc.
Banking Finance Insurance & Real Estate Incremental Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 9/23/2024 1,723,805 1,720,511 1,708,721
McAfee LLC
Services: Business Term Loan B Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 9/30/2024 2,690,156 2,661,137 2,694,810
McDermott International Inc.
Construction & Building Term Loan B Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.49 % 5/12/2025 1,985,000 1,948,934 1,907,625
McGraw-Hill Global Education Holdings LLC
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 5/4/2022 974,920 972,268 897,229
MedPlast Holdings Inc.
Healthcare & Pharmaceuticals Term Loan (06/18) Loan 3M USD LIBOR+ 3.75 % 0.00 % 6.36 % 7/2/2025 498,750 496,426 500,620

Issuer Name

Industry

Asset Name

Asset
Type

Reference Rate/Spread
LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number of
Shares Cost Fair Value
Meredith Corporation
Media: Advertising Printing & Publishing Term Loan B (10/18) Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 1/31/2025 681,944 680,552 681,563
Messer Industries LLC
Chemicals Plastics & Rubber Term Loan Loan 3M USD LIBOR+ 2.50 % 0.00 % 5.11 % 2/5/2026 3,000,000 2,992,500 2,977,500
Michaels Stores Inc.
Retail Term Loan B Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.99 % 1/30/2023 2,628,816 2,617,545 2,600,898
Midwest Physician Administrative Services LLC
Healthcare & Pharmaceuticals Term Loan (2/18) Loan 1M USD LIBOR+ 2.75 % 0.75 % 5.24 % 8/15/2024 977,985 973,790 958,836
Milk Specialties Company
Beverage Food & Tobacco Term Loan (2/17) Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 8/16/2023 3,969,672 3,905,366 3,946,529
MKS Instruments Inc.
High Tech Industries Term LoanB-5 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 2/2/2026 1,000,000 990,327 998,750
MLN US HoldCo LLC
Telecommunications Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 11/28/2025 1,000,000 997,824 992,500
MRC Global (US) Inc.
Metals & Mining Term Loan B2 Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.49 % 9/20/2024 495,000 493,864 495,000
NAI Entertainment Holdings LLC
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.99 % 5/8/2025 997,500 995,282 989,600
Natgasoline LLC
Chemicals Plastics & Rubber Term Loan Loan 3M USD LIBOR+ 3.50 % 0.00 % 6.11 % 11/14/2025 500,000 497,720 500,625
National Mentor Holdings Inc.
Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.86 % 2/5/2026 2,000,000 1,980,000 2,005,840
Navistar Financial Corporation
Automotive Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 7/30/2025 1,990,000 1,980,604 1,982,538
NeuStar Inc.
Telecommunications Term Loan B4 (03/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 8/8/2024 3,992,424 3,925,243 3,822,746
New Media Holdings II LLC
Media: Diversified & Production Term Loan Loan 1M USD LIBOR+ 6.25 % 1.00 % 8.74 % 7/14/2022 5,973,699 5,959,159 5,921,430
NMI Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.75 % 1.00 % 7.24 % 5/23/2023 3,489,981 3,494,699 3,489,981
Novetta Solutions LLC
Aerospace & Defense Term Loan Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.49 % 10/17/2022 1,939,870 1,928,782 1,898,648
Novetta Solutions LLC
Aerospace & Defense Second Lien Term Loan Loan 1M USD LIBOR+ 8.50 % 1.00 % 10.99 % 10/16/2023 1,000,000 993,349 945,000
NPC International Inc.
Beverage Food & Tobacco Term Loan Loan 2M USD LIBOR+ 3.50 % 1.00 % 6.07 % 4/19/2024 492,500 492,068 461,719
Ocean Bidco Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 2M USD LIBOR+ 4.75 % 1.00 % 7.32 % 3/21/2025 473,186 470,976 464,115
OCI Partners LP
Chemicals Plastics & Rubber Term Loan B (2/18) Loan 3M USD LIBOR+ 4.00 % 0.00 % 6.61 % 3/13/2025 3,067,196 3,045,069 3,059,528
Office Depot Inc.
Retail Term Loan B Loan 1M USD LIBOR+ 5.25 % 1.00 % 7.74 % 11/8/2022 2,909,851 2,888,913 2,971,685
Onex Carestream Finance LP
High Tech Industries Term Loan Loan 1M USD LIBOR+ 5.75 % 1.00 % 8.24 % 2/28/2021 2,834,110 2,822,053 2,780,970
Outcomes Group Holdings Inc.
Banking Finance Insurance & Real Estate Term Loan Loan 3M USD LIBOR+ 3.50 % 0.00 % 6.11 % 10/24/2025 500,000 498,833 493,125
Owens & Minor Distribution Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 4/30/2025 497,500 488,393 420,800
P2 Upstream Acquisition Co.
High Tech Industries Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.61 % 10/30/2020 945,558 943,988 929,011
Peraton Corp.
Aerospace & Defense Term Loan Loan 3M USD LIBOR+ 5.25 % 1.00 % 7.86 % 4/29/2024 1,970,000 1,962,137 1,915,825
PGX Holdings Inc.
Services: Consumer Term Loan Loan 1M USD LIBOR+ 5.25 % 1.00 % 7.74 % 9/29/2020 2,674,370 2,667,939 2,614,197

Issuer Name

Industry

Asset Name

Asset
Type

Reference Rate/Spread
LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number of
Shares Cost Fair Value
PI UK Holdco II Limited
Services: Business Term Loan B1 (PI UK Holdco II) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 1/3/2025 1,488,750 1,481,083 1,473,237
Plastipak Packaging Inc
Containers Packaging & Glass Term Loan B (04/18) Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.99 % 10/15/2024 987,500 983,130 974,100
Presidio Inc.
Services: Business Term Loan B 2017 Loan 3M USD LIBOR+ 2.75 % 1.00 % 5.36 % 2/2/2024 1,697,600 1,663,332 1,678,078
Prime Security Services
Borrower LLC
Services: Consumer Refi Term LoanB-1 Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.24 % 5/2/2022 1,950,361 1,943,928 1,943,925
Priority Payment Systems
Holdings LLC
High Tech Industries Term Loan Loan 1M USD LIBOR+ 5.00 % 1.00 % 7.49 % 1/3/2023 1,150,910 1,145,156 1,145,881
Priority Payment Systems
Holdings LLC
High Tech Industries Delayed Draw Term Loan Loan 3M USD LIBOR+ 5.00 % 1.00 % 7.61 % 1/3/2023 —   —   —
Project Accelerate Parent LLC
Services: Business Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.74 % 1/2/2025 1,985,000 1,976,356 1,985,000
Prometric Holdings Inc.
Services: Business Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 1/29/2025 496,250 494,124 492,528
Quad/Graphics Inc.
Media: Advertising Printing & Publishing Term Loan B (12/18) Loan 1M USD LIBOR+ 5.00 % 0.00 % 7.49 % 2/2/2026 4,500,000 4,434,606 4,483,125
Rackspace Hosting Inc.
High Tech Industries Term Loan B Loan 3M USD LIBOR+ 3.00 % 1.00 % 5.61 % 11/3/2023 1,491,203 1,480,810 1,418,969
Radio Systems Corporation
Consumer goods: Durable Term Loan Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.24 % 5/2/2024 1,477,500 1,477,500 1,457,184
Radiology Partners Inc.
Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.75 % 0.00 % 7.36 % 7/9/2025 1,000,000 995,568 1,005,000
Research Now Group Inc.
Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 5.50 % 1.00 % 7.99 % 12/20/2024 3,967,481 3,836,608 3,942,684
Resolute Investment
Managers Inc.
Banking Finance Insurance & Real Estate Term Loan (10/17) Loan 3M USD LIBOR+ 3.25 % 1.00 % 5.86 % 4/29/2022 2,709,661 2,712,126 2,713,049
Restaurant Technologies Inc.
Beverage Food & Tobacco Term Loan (9/18) Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 10/1/2025 1,000,000 997,720 999,380
Revspring Inc.
Services: Business Term Loan B Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.86 % 10/10/2025 1,000,000 997,767 985,000
Reynolds Group Holdings Inc.
Metals & Mining Term Loan (01/17) Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 2/6/2023 1,725,912 1,725,912 1,718,369
RGIS Services LLC
Services: Business Term Loan Loan 3M USD LIBOR+ 7.50 % 1.00 % 10.11 % 3/31/2023 486,033 480,179 415,558
Robertshaw US Holding Corp.
Consumer goods: Durable Term Loan B Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 2/28/2025 992,500 990,321 929,228
Rocket Software Inc.
High Tech Industries Term Loan (11/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.74 % 11/28/2025 4,000,000 3,982,916 4,000,000
Rovi Solutions Corporation
Media: Diversified & Production Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.75 % 4.99 % 7/2/2021 1,332,669 1,330,256 1,311,013
Russell Investments US Institutional Holdco Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.74 % 6/1/2023 4,184,784 4,064,980 4,142,936
Sahara Parent Inc.
High Tech Industries Term Loan B (11/18) Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 8/16/2024 1,975,050 1,956,153 1,967,031
Sally Holdings LLC
Retail Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 7/5/2024 987,455 983,210 973,877
Sally Holdings LLC
Retail Term Loan (Fixed) Loan Fixed 4.50 % 0.00 % 4.50 % 7/5/2024 1,000,000 996,030 963,750
Savage Enterprises LLC
Transportation: Cargo Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.99 % 8/1/2025 3,823,951 3,774,062 3,836,684

Issuer Name

Industry

Asset Name

Asset
Type

Reference Rate/Spread
LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number of
Shares Cost Fair Value
SCS Holdings I Inc.
High Tech Industries Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.74 % 10/31/2022 3,393,482 3,378,749 3,401,966
Seadrill Operating LP
Energy: Oil & Gas Term Loan B Loan 3M USD LIBOR+ 6.00 % 1.00 % 8.61 % 2/21/2021 915,243 888,341 763,084
SG Acquisition Inc.
Banking Finance Insurance & Real Estate Term Loan (Safe-Guard) Loan 3M USD LIBOR+ 5.00 % 1.00 % 7.61 % 3/29/2024 1,660,000 1,647,194 1,647,550
Shearer’s Foods LLC
Beverage Food & Tobacco Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 6.74 % 6/30/2021 2,925,531 2,916,771 2,898,704
Shutterfly Inc.
Media: Advertising Printing & Publishing Term Loan B2 Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 8/19/2024 3,017,873 2,966,805 2,981,417
Sirva Worldwide Inc.
Transportation: Cargo Term Loan B Loan 3M USD LIBOR+ 5.50 % 0.00 % 8.11 % 8/4/2025 2,500,000 2,471,352 2,443,750
SMB Shipping Logistics LLC
Transportation: Consumer Term Loan B Loan 6M USD LIBOR+ 4.00 % 1.00 % 6.69 % 2/2/2024 1,969,937 1,968,013 1,953,528
SP PF Buyer LLC
Consumer goods: Durable Term Loan B Loan 3M USD LIBOR+ 4.50 % 0.00 % 7.11 % 12/19/2025 2,000,000 1,921,772 1,970,000
SRAM LLC
Consumer goods: Durable Term Loan Loan Prime+ 2.73 % 1.00 % 3.73 % 3/15/2024 1,984,685 1,970,345 1,967,319
SS&C Technologies Inc.
Services: Business Term Loan B3 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 4/16/2025 616,068 614,712 612,815
SS&C Technologies Inc.
Services: Business Term Loan B4 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 4/16/2025 235,988 235,469 234,742
SS&C Technologies Inc.
Services: Business Term LoanB-5 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 4/16/2025 498,743 497,588 496,189
SSH Group Holdings Inc.
Consumer goods:Non-durable Term Loan Loan 2M USD LIBOR+ 4.25 % 0.00 % 6.82 % 7/30/2025 1,995,000 1,990,196 1,970,063
Staples Inc.
Retail Term Loan B (07/17) Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 9/12/2024 1,975,000 1,970,996 1,959,240
Starfruit US Holdco LLC
Chemicals Plastics & Rubber Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 10/1/2025 500,000 497,640 496,375
Steak N Shake Operations Inc.
Beverage Food & Tobacco Term Loan Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 3/19/2021 834,991 832,242 638,768
Sybil Software LLC
High Tech Industries Term Loan B (4/18) Loan 3M USD LIBOR+ 2.50 % 1.00 % 5.11 % 9/29/2023 677,351 674,400 676,220
Tenneco Inc
Capital Equipment Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 10/1/2025 1,500,000 1,485,848 1,484,070
Ten-X LLC
Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 9/30/2024 1,980,000 1,978,059 1,955,250
TGG TS Acquisition Company
Media: Diversified & Production Term Loan (12/18) Loan 3M USD LIBOR+ 6.50 % 0.00 % 9.11 % 12/15/2025 3,000,000 2,854,156 2,981,250
The Edelman Financial Center LLC
Banking Finance Insurance & Real Estate Term Loan B (06/18) Loan 3M USD LIBOR+ 3.25 % 0.00 % 5.86 % 7/21/2025 1,250,000 1,244,166 1,247,138
Thor Industries Inc.
Automotive Term Loan (USD) Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 2/2/2026 2,830,276 2,797,635 2,734,754
Topgolf International Inc.
Hotel Gaming & Leisure Term Loan (02/19) Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.99 % 2/6/2026 500,000 495,177 499,375
Townsquare Media Inc.
Media: Broadcasting & Subscription Term Loan B (02/17) Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.49 % 4/1/2022 881,975 879,219 868,745
Transdigm Inc.
Aerospace & Defense Term Loan G Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.99 % 8/22/2024 4,148,194 4,154,661 4,087,381
Travel Leaders Group LLC
Hotel Gaming & Leisure Term Loan B (08/18) Loan 1M USD LIBOR+ 4.00 % 0.00 % 6.49 % 1/25/2024 2,487,500 2,482,802 2,493,719
TRC Companies Inc.
Services: Business Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.99 % 6/21/2024 3,411,364 3,399,559 3,368,722

Issuer Name

Industry

Asset Name

Asset
Type

Reference Rate/Spread
LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number of
Shares Cost Fair Value
Trico Group LLC
Containers Packaging & Glass Incremental Term Loan Loan Prime+ 6.00 % 1.00 % 7.00 % 2/2/2024 4,943,750 4,804,906 4,696,562
Truck Hero Inc.
Transportation: Cargo First Lien Term Loan Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.24 % 4/22/2024 2,957,469 2,937,874 2,890,926
Trugreen Limited Partnership
Services: Consumer Term Loan B (07/17) Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.49 % 4/13/2023 488,813 483,230 490,034
Twin River Management Group Inc.
Hotel Gaming & Leisure Term Loan Loan 3M USD LIBOR+ 3.50 % 1.00 % 6.11 % 7/10/2020 713,415 713,888 712,223
United Natural Foods Inc.
Beverage Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.74 % 10/22/2025 3,500,000 3,278,105 3,119,375
Univar USA Inc.
Chemicals Plastics & Rubber Term Loan B3 (11/17) Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 7/1/2024 4,250,492 4,231,419 4,241,183
Univision Communications Inc.
Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.24 % 3/15/2024 2,746,369 2,733,489 2,557,556
UOS LLC
Capital Equipment Term Loan B Loan 1M USD LIBOR+ 5.50 % 1.00 % 7.99 % 4/18/2023 591,247 593,692 594,203
UPC Financing Partnership
Media: Broadcasting & Subscription Term Loan (10/17) Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.99 % 1/15/2026 832,911 832,042 831,687
VeriFone Systems Inc.
Banking Finance Insurance & Real Estate Term Loan (7/18) Loan 3M USD LIBOR+ 4.00 % 0.00 % 6.61 % 8/20/2025 5,486,250 5,456,319 5,464,689
Verra Mobility Corp.
Construction & Building Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 3/3/2025 496,250 494,043 497,903
VFH Parent LLC
Banking Finance Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 3.50 % 0.00 % 6.11 % 1/30/2026 3,000,000 2,985,000 3,006,570
Virtus Investment Partners Inc.
Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.75 % 4.74 % 6/3/2024 3,836,368 3,834,675 3,820,371
Vistra Operations Company LLC
Utilities: Electric 2018 Incremental Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.49 % 12/31/2025 995,000 993,884 992,095
Vizient Inc.
Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 2.75 % 1.00 % 5.24 % 2/13/2023 296,814 291,350 295,923
Wand NewCo 3 Inc.
Automotive Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 2/5/2026 250,000 247,562 250,625
Web.Com Group Inc.
High Tech Industries Term Loan B (08/18) Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.24 % 10/10/2025 500,000 498,856 496,250
WeddingWire Inc.
Services: Consumer Term Loan Loan 3M USD LIBOR+ 4.50 % 0.00 % 7.11 % 12/19/2025 4,000,000 3,993,119 3,995,000
WEI Sales LLC
Beverage Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.24 % 3/31/2025 496,250 495,108 495,009
Weight Watchers International Inc.
Services: Consumer Term Loan B Loan 3M USD LIBOR+ 4.75 % 0.75 % 7.36 % 11/29/2024 1,900,000 1,867,434 1,839,827
West Corporation
Telecommunications Term Loan B Loan 3M USD LIBOR+ 3.50 % 1.00 % 6.11 % 10/10/2024 4,241,234 4,068,929 4,003,830
Western Dental Services Inc.
Retail Term Loan (12/18) Loan 1M USD LIBOR+ 5.25 % 1.00 % 7.74 % 6/30/2023 2,463,734 2,446,863 2,402,141
Western Digital Corporation
High Tech Industries Term LoanB-4 Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.24 % 4/29/2023 1,299,622 1,266,499 1,274,605
Wirepath LLC
Consumer goods:Non-durable Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.61 % 8/5/2024 2,985,044 2,957,351 2,925,343
Wynn Resorts Limited
Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.74 % 10/30/2024 1,000,000 997,579 986,500

Issuer Name

Industry

Asset Name

Asset
Type

Reference Rate/Spread
LIBOR
Floor Current
Rate
(All In) Maturity
Date Principal/
Number of
Shares Cost Fair Value
YS Garments LLC
Retail Term Loan Loan 1W USD LIBOR+ 6.00 % 1.00 % 8.41 % 8/9/2024 1,987,500 1,969,194 1,952,719
Zep Inc.
Chemicals Plastics & Rubber Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.61 % 8/12/2024 2,468,750 2,458,786 2,139,592
Zest Acquisition Corp.
Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.99 % 3/14/2025 992,500 988,123 918,062

$ 509,676,701 $ 498,405,060

Number of
Shares Cost Fair Value
Cash and cash equivalents

U.S. Bank Money Market (b)

18,495,653 $ 18,495,653 $ 18,495,653

Total cash and cash equivalents

18,495,653 $ 18,495,653 $ 18,495,653

~~(a)~~
~~Security is in default as of February 28, 2019.~~
~~(b)~~
~~Included within cash and cash equivalents in Saratoga CLO’s Statements of Assets and Liabilities as of February 28, 2019.~~
~~LIBOR—~~LIBOR - London Interbank Offered Rate
1W USD ~~LIBOR—~~LIBOR - The 1 week USD LIBOR rate as of February 28, 2019 was 2.41%.
1M USD ~~LIBOR—~~LIBOR - The 1 month USD LIBOR rate as of February 28, 2019 was 2.49%.
2M USD ~~LIBOR—~~LIBOR - The 2 month USD LIBOR rate as of February 28, 2019 was 2.57%.
3M USD ~~LIBOR—~~LIBOR - The 3 month USD LIBOR rate as of February 28, 2019 was 2.62%.
6M USD ~~LIBOR—~~LIBOR - The 6 month USD LIBOR rate as of February 28, 2019 was 2.69%.
~~Prime—~~Prime - The Prime Rate as of February 28, 2019 was 5.50%.
Note 5. Income Taxes
SIA-Avionte, Inc., SIA-Easy Ice,~~SIA-Easy~~ ~~Ice,~~ LLC,SIA-GH, Inc.,SIA-HT, Inc.,SIA-MAC, Inc., SIA-TG, Inc.,SIA-TT, Inc.,andSIA-Vector, Inc., each 100% owned by the Company, are each filing standalone C Corporation tax returns for federal and state purposes. As separately regarded entities for tax purposes, these entities are taxed at normal corporate rates. For tax purposes, any distributions by the entities to the parent company would generally need to be distributed to the Company’s shareholders. Generally, such distributions of the entities’ income to the Company’s shareholders will be considered as qualified dividends for tax purposes. The entities taxable net income will differ from U.S. GAAP net income because of deferred tax temporary differences adjustments arising from net operating losses and unrealized appreciation and deprecation of securities held. Deferred tax assets and liabilities are measured using enacted corporate federal and state tax rates expected to apply to taxable income in the years in which those net operating losses are utilized and the unrealized gains and losses are realized. Deferred tax assets and deferred tax liabilities are netted off by entity, as allowed. The recoverability of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of a history of operating losses combined with insufficient projected taxable income or other taxable events in the taxable blockers.
Deferred tax assets and liabilities, and related valuation allowance as of ~~May~~August 31, 2019 and February 28, 2019 were as follows:

   May 31, 2019    February 28, 2019    August 31, 2019    February 28, 2019
Total deferred tax assets
   $ 2,711,105    $ 2,533,426    $ 4,246,245    $ 2,533,426
Total deferred tax liabilities
   (1,787,765 )    (1,766,835 )    (2,492,028 )    (1,766,835 )
Valuation allowance on net deferred tax assets
   (1,686,123 )    (1,506,307 )    (2,755,338 )    (1,506,307 )








Net deferred tax liability
   $ (762,783 )    $ (739,716 )
Net deferrred tax liability
   $ (1,001,121 )    $ (739,716 )








As of ~~May~~August 31, 2019, the valuation allowance on deferred tax assets was ~~$1.7~~$2.8 million, which represents the federal and state tax effect of net operating losses and unrealized losses that we do not believe we will realize through future taxable income. Any adjustments to the Company’s valuation allowance will depend on estimates of future taxable income and will be made in the period such determination is made.
Net ~~change in unrealized appreciation (depreciation) on investments reported in the consolidated statement of operations includes $0.03 million and $0.9 million of net~~ deferred tax (benefit) expense for the three months ended ~~May~~August 31, 2019 includes $0.7 million net change in unrealized appreciation (depreciation) on investments and ~~May~~$(0.5) million net change in total operating expense, in the consolidated statement of operations, respectively. Net deferred tax (benefit) expense for the three months ended August 31, 2018 includes $(0.2) million net change in unrealized appreciation (depreciation) on investments and $(0.3) million net change in total operating expense, in the consolidated statement of operations, respectively.
Net deferred tax (benefit) expense for the six months ended August 31, 2019 includes $0.7 million net change in unrealized appreciation (depreciation) on investments and $(0.5) million net change in total operating expense, in the consolidated statement of operations, respectively. Net deferred tax (benefit) expense for the six months ended August 31, 2018 includes $0.8 million change in unrealized appreciation (depreciation) on investments and $(0.6) million net change in total operating expense, in the consolidated statement of operations, respectively.
Deferred tax temporary differences may include differences for state taxes and joint venture interests.
Federal and state income tax provisions (benefits) on investments for the three and six months ended ~~May~~August 31, 2019 and ~~2018 are as follows:~~2018:

   May 31, 2019    May 31, 2018
Current

Federal
   $ —      $ —
State
   —      —




Net current expense
   —      —




Deferred

Federal
   13,290    624,753
State
   9,776    48,483




Net deferred expense
   23,066    673,236




Net tax provision
   $ 23,066    $ 673,236




   For the three months ended    For the six months ended
   August 31, 2019    August 31, 2018    August 31, 2019    August 31, 2018
Current

Federal
   $ —      $ —      $ —      $ —
State
   —      —      —      —








Net current expense
   —      —      —      —








Deferred

Federal
   200,527    (458,218 )    213,817    166,534
State
   37,812    (35,560 )    47,588    12,924








Net deferred expense
   238,339    (493,778 )    261,405    179,458








Net tax provision
   $ 238,339    $ (493,778 )    $ 261,405    $ 179,458








Note 6. Agreements and Related Party Transactions
On July 30, 2010, the Company entered into the Management Agreement with our Manager. The initial term of the Management Agreement was two years, with automatic,one-year renewals at the end of each year, subject to certain approvals by our board of directors and/or the Company’s stockholders. On July 9, 2019, our board of directors approved the renewal of the Management Agreement for an additionalone-year term. Pursuant to the Management Agreement, our Manager implements our business strategy on aday-to-day basis and performs certain services for us, subject to oversight by our board of directors. Our Manager is responsible for, among other duties, determining investment criteria, sourcing, analyzing and executing investments transactions, asset sales, financings and performing asset management duties. Under the Management Agreement, we have agreed to pay our Manager a management fee for investment advisory and management services consisting of a base management fee and an incentive management fee.
The base management fee of 1.75% is calculated based on the average value of our gross assets (other than cash or cash equivalents, but including assets purchased with borrowed funds) at the end of the two most recently completed fiscal quarters. The base management fee is paid quarterly following the filing of the most recent~~recent~~ 10-Q.
The incentive management fee consists of the following two parts:
The first, payable quarterly in arrears, equals 20.0% of ourpre-incentive fee net investment income, expressed as a rate of return on the value of our net assets at the end of the immediately preceding quarter, that exceeds a 1.875% quarterly hurdle rate measured as of the end of each fiscal quarter, subject to a“catch-up” provision. Under this provision, in any fiscal quarter, our Manager receives no incentive fee unless ourpre-incentive fee net investment income exceeds the hurdle rate of 1.875%. Our Manager will receive 100.0% of~~pre-~~ ~~incentive~~ pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than or equal to 2.344% in any fiscal quarter; and 20.0% of the amount of ourpre-incentive fee net investment income, if any, that exceeds 2.344% in any fiscal quarter. There is no accumulation of amounts on the hurdle rate from quarter to quarter, and accordingly there is no claw back of amounts previously paid if subsequent quarters are below the quarterly hurdle rate, and there is no delay of payment if prior quarters are below the quarterly hurdle rate.
The second part of the incentive fee is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Management Agreement) and equals 20.0% of our “incentive fee capital gains,” which equals our realized capital gains on a cumulative basis from May 31, 2010 through the end of the fiscal year, if any, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis on each investment in the Company’s portfolio, less the aggregate amount of any previously paid capital gain incentive fee. Importantly, the capital gains portion of the incentive fee is based on realized gains and realized and unrealized losses from May 31, 2010. Therefore, realized and unrealized losses incurred prior to such time will not be taken into account when calculating the capital gains portion of the incentive fee, and our Manager will be entitled to 20.0% of incentive fee capital gains that arise after May 31, 2010. In addition, for the purpose of the “incentive fee capital gains” calculations, the cost basis for computing realized gains and losses on investments held by us as of May 31, 2010 will equal the fair value of such investments as of such date.
For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, the Company incurred ~~$1.8~~$2.0 million and ~~$1.5~~$1.6 million in base management fees, respectively. For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, the Company incurred ~~$1.2~~$1.4 million and ~~$1.0~~$1.2 million in incentive fees related topre-incentive fee net investment income, respectively. For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, the Company accrued ~~an increase~~$0.7 million in expense and a reduction of ~~$1.0~~$0.4 million, ~~and an increase of $0.9 million~~respectively, in incentive fees related to capital gains.
For the six months ended August 31, 2019 and August 31, 2018, the Company incurred $3.8 million and $3.2 million in base management fees, respectively. For the six months ended August 31, 2019 and August 31, 2018, the Company incurred $2.6 million and $2.2 million in incentive fees relatedto pre-incentive fee net investment income, respectively. For the six months ended August 31, 2019 and August 31, 2018, the Company accrued $1.6 million in expense and a reduction of $0.3 million, respectively, in incentive fees related to capital gains, respectively.
The accrual is calculated using both realized and unrealized capital gains for the period. The actual incentive fee related to capital gains will be determined and payable in arrears at the end of the fiscal year and will include only realized capital gains for the period. As of ~~May~~August 31, 2019, the base management fees accrual was ~~$1.8~~$2.0 million and the incentive fees accrual was ~~$5.7~~$6.6 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities. As of February 28, 2019, the
base management fees accrual was $1.9 million and the incentive fees accrual was $4.8 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities.
On July 30, 2010, the Company entered into a separate administration agreement (the “Administration Agreement”) with our Manager, pursuant to which our Manager, as our administrator, has agreed to furnish us with the facilities and administrative services necessary to conduct ourday-to-day operations and provide managerial assistance on our behalf to those portfolio companies to which we are required to provide such assistance. The initial term of the Administration Agreement was two years, with automatic,one-year renewals at the end of each year subject to certain approvals by our board of directors and/or our stockholders. The amount of expenses payable or reimbursable thereunder by the Company was capped at $1.0 million for the initialtwo-year term of the Administration Agreement and subsequent renewals. On July 8, 2015, our board of directors approved the renewal of the Administration Agreement for an additional~~one-~~one-year ~~year~~ term and determined to increase the cap on the payment or reimbursement of expenses by the Company thereunder, which had not been increased since the inception of the agreement, to $1.3 million. On July 7, 2016, our board of directors approved the renewal of the Administration Agreement for an additionalone-year term. On October 5, 2016, our board of directors determined to increase the cap on the payment or reimbursement of expenses by the Company under the Administration Agreement, from $1.3 million to $1.5 million, effective November 1, 2016. On July 11, 2017, our board of directors approved the renewal of the Administration Agreement for an additionalone-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $1.5 million to $1.75 million, effective August 1, 2017. On July 9, 2018, our board of directors approved the renewal of the Administration Agreement for an additionalone-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $1.75 million to $2.0 million, effective August 1, 2018. On July 9, 2019, our board of directors approved the renewal of the Administration Agreement for an additionalone-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $2.0 million to $2.225 million effective August 1, 2019.
For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, we recognized $0.5 million and ~~$0.4~~$0.5 million in administrator expenses, respectively, pertaining to bookkeeping, record keeping and other administrative services provided to us in addition to our allocable portion of rent and other overhead related expenses. For the six months ended August 31, 2019 and August 31, 2018, we recognized $1.0 million and $0.9 million in administrator expenses, respectively, pertaining to bookkeeping, record keeping and other administrative services provided to us in addition to our allocable portion of rent and other overhead related expenses. As of ~~May~~August 31, 2019, $0.3 million of administrator expenses were accrued and included in due to manager in the accompanying consolidated statements of assets and liabilities. As of February 28, 2019, $0.3 million of administrator expenses were accrued and included in due to manager in the accompanying consolidated statements of assets and liabilities. For the ~~three~~six months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, the Company neither bought nor sold any investments from the Saratoga CLO.
For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, we recognized management fee income of $0.6 million and $0.4 million, respectively, related to the Saratoga CLO.
For the six months ended August 31, 2019 and ~~incentive~~August 31, 2018, we recognized management fee income of ~~$0.0~~$1.3 million and ~~$0.2~~$0.7 million, respectively, related to the Saratoga CLO.
On December 14, 2018, the Company completed the third refinancing and issuance of the Saratoga ~~CLO.~~CLO’s2013-1 Reset CLO Notes(the “2013-1 Reset CLO Notes”). This refinancing, among other things, extended the Saratoga CLO reinvestment period to January 2021, and extended its legal maturity to January 2030. Anon-call period ending January 2020 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $300 million in assets to approximately $500 million. As part of this refinancing and upsizing, the Company invested an additional $13.8 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $2.5 million in aggregate principal amount of theClass F-R-2 Notes tranche and $7.5 million in aggregate principal amount of theClass G-R-2 Notes tranche at par. Concurrently, the existing $4.5 million of Class F notes were repaid. The Company also paid $2.0 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. ~~As of May~~During the six months ended August 31, 2019, ~~there remained an outstanding receivable~~the Company received full payment of ~~$1.2~~$1.7 million from the Saratoga CLO for such transaction ~~costs which is presented as due from affiliate on the Company’s consolidated statement of assets and liabilities.~~costs.
In conjunction with the third refinancing and issuance of the2013-1 Reset CLO Notes on December 14, 2018, the Company is no longer entitled to receive an incentive management fee from Saratoga CLO. See Note 4 for additional information. For the three and six months ended August 31, 2018, we recognized incentive fee income of $0.1 million and $0.3 million, respectively, related to the Saratoga CLO.
Note 7. Borrowings
Credit Facility
As a BDC, we are only allowed to employ leverage to the extent that our asset coverage, as defined in the 1940 Act, equals at least 200.0% after giving effect to such leverage, or, if we obtain the required approvals from our independent directors and/or stockholders, 150.0%. The amount of leverage that we employ at any time depends on our assessment of the market and other factors at the time of any proposed borrowing. Our asset coverage ratio, as defined in the 1940 Act, was ~~238.9%~~266.9% as of ~~May~~August 31, 2019 and 234.5% as of February 28, 2019. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, ournon-interested board of directors approved of our becoming subject to a minimum asset coverage ratio of 150.0% under Sections 18(a)(1) and 18(a)(2) of the Investment Company Act, as amended. The 150.0% asset coverage ratio became effective on April 16, 2019.
On April 11, 2007, we entered into a $100.0 million revolving securitized credit facility (the “Revolving Facility”). On May 1,
2007, we entered into a $25.7 million term securitized credit facility (the “Term Facility” and, together with the Revolving Facility, the “Facilities”), which was fully drawn at closing. In December 2007, we consolidated the Facilities by using a draw under the Revolving Facility to repay the Term Facility. In response to the market wide decline in financial asset prices, which negatively affected the value of our portfolio, we terminated the revolving period of the Revolving Facility effective January 14, 2009 and commenced atwo-year amortization period during which all principal proceeds from the collateral were used to repay outstanding borrowings. A significant percentage of our total assets had been pledged under the Revolving Facility to secure our obligations thereunder. Under the Revolving Facility, funds were borrowed from or through certain lenders and interest was payable monthly at the greater of the commercial paper rate and our lender’s prime rate plus 4.00% plus a default rate of 2.00% or, if the commercial paper market was unavailable, the greater of the prevailing LIBOR rates and our lender’s prime rate plus 6.00% plus a default rate of 3.00%.
On July 30, 2010, we used the net proceeds from (i) the stock purchase transaction and (ii) a portion of the funds available to us under the $45.0 million senior secured revolving credit facility (the “Credit Facility”) with Madison Capital Funding LLC, in each case, to pay the full amount of principal and accrued interest, including default interest, outstanding under the Revolving Facility. As a result, the Revolving Facility was terminated in connection therewith. Substantially all of our total assets, other than those held by SBIC LP, have been pledged under the Credit Facility to secure our obligations thereunder.
On February 24, 2012, we amended the Credit Facility to, among other things:

expand the borrowing capacity under the Credit Facility from $40.0 million to $45.0 million;

extend the period during which we may make and repay borrowings under the Credit Facility from July 30, 2013 to February 24, 2015 (the “Revolving Period”). The Revolving Period may, upon the occurrence of an event of default, by action of the lenders or automatically, be terminated. All borrowings and other amounts payable under the Credit Facility are due and payable five years after the end of the Revolving Period; and

remove the condition that we may not acquire additional loan assets without the prior written consent of Madison Capital Funding LLC.
On September 17, 2014, we entered into a second amendment to the Credit Facility to, among other things:

extend the commitment termination date from February 24, 2015 to September 17, 2017;

extend the maturity date of the Credit Facility from February 24, 2020 to September 17, 2022 (unless terminated sooner upon certain events);

reduce the applicable margin rate on base rate borrowings from 4.50% to 3.75%, and on LIBOR borrowings from 5.50% to 4.75%; and
reduce the floor on base rate borrowings from 3.00% to 2.25%, and on LIBOR borrowings from 2.00% to 1.25%.
On May 18, 2017, we entered into a third amendment to the Credit Facility to, among other things:

extend the commitment termination date from September 17, 2017 to September 17, 2020;

extend the final maturity date of the Credit Facility from September 17, 2022 to September 17, 2025 (unless terminated sooner upon certain events);

reduce the floor on base rate borrowings from 2.25% to 2.00%;

reduce the floor on LIBOR borrowings from 1.25% to 1.00%; and

reduce the commitment fee rate from 0.75% to 0.50% for any period during which the ratio of advances outstanding to aggregate commitments, expressed as a percentage, is greater than or equal to 50%.
In addition to any fees or other amounts payable under the terms of the Credit Facility agreement with Madison Capital Funding
LLC, an administrative agent fee per annum equal to $0.1 million is payable in equal monthly installments in arrears.
As of ~~May~~August 31, 2019 and February 28, 2019, there ~~were $0.0 million of outstanding borrowings under the Credit Facility. There~~ were no outstanding borrowings under the Credit ~~Facility as of February 28, 2019.~~Facility. During the applicable periods, the Company was in compliance with all of the limitations and requirements of the Credit Facility. Financing costs of ~~$0.0~~$3.1 million related to the Credit Facility have been capitalized and are being amortized over the term of the facility.
For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, we recorded $0.1 million and ~~$0.1~~$0.2 million of interest expense related to the Credit Facility, respectively, which includes commitment and administrative agent fees. For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, we recorded $0.02 million and $0.02 million of amortization of deferred financing costs related to the Credit Facility, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations.
~~There were no~~ During the three months ended August 31, 2019, the weighted average interest rate on the outstanding borrowings under the Credit Facility ~~during~~was 6.06%, and the average dollar amount of outstanding borrowings under the Credit Facility was $0.3 million. During the three months ended ~~May~~August 31, 2018, the weighted average interest rate on the outstanding borrowings under the Credit Facility was 6.94%, and the average dollar amount of outstanding borrowings under the Credit Facility was $2.3 million.
For the six months ended August 31, 2019 and ~~May~~August 31, ~~2018.~~2018, we recorded $0.2 million and $0.3 million of interest expense related to the Credit Facility, respectively, which includes commitment and administrative agent fees. For the six months ended August 31, 2019 and August 31, 2018, we recorded $0.05 million and $0.05 million of amortization of deferred financing costs related to the Credit Facility, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2019, the weighted average interest rate on the outstanding borrowings under the Credit Facility was 6.06%, and the average dollar amount of outstanding borrowings under the Credit Facility was $0.2 million. During the six months ended August 31, 2018, the weighted average interest rate on the outstanding borrowings under the Credit Facility was 6.94%, and the average dollar amount of outstanding borrowings under the Credit Facility was $1.2 million.
The Credit Facility contains limitations as to how borrowed funds may be used, such as restrictions on industry concentrations, asset size, weighted average life, currency denomination and collateral interests. The Credit Facility also includes certain requirements relating to portfolio performance, the violation of which could result in the limit of further advances and, in some cases, result in an event of default, allowing the lenders to accelerate repayment of amounts owed thereunder. The Credit Facility has aneight-year term, consisting of athree-year period (the “Revolving Period”), under which the Company may make and repay borrowings, and a final maturity five years from the end of the Revolving Period. Availability on the Credit Facility will be subject to a borrowing base calculation, based on, among other things, applicable advance rates (which vary from 50.0% to 75.0% of par or fair value depending on the type of loan asset) and the value of certain “eligible” loan assets included as part of the Borrowing Base. Funds may be borrowed at the greater of the prevailingone-month LIBOR rate and 1.00%, plus an applicable margin of 4.75%. At the Company’s option, funds may be borrowed based on an alternative base rate, which in no event will be less than 2.00%, and the applicable margin over such alternative base rate is 3.75%. In addition, the Company will pay the lenders a commitment fee of 0.75% per year (or 0.50% if the ratio of advances outstanding to aggregate commitments is greater than or equal to 50%) on the unused amount of the Credit Facility for the duration of the Revolving Period.
Our borrowing base under the Credit Facility was ~~$27.3~~$40.2 million subject to the Credit Facility cap of $45.0 million at ~~May~~August 31, 2019. For purposes of determining the borrowing base, most assets are assigned the
values set forth in our most recent Annual Report on Form10-K or Quarterly Report on Form10-Q filed with the U.S. Securities and Exchange Commission (“SEC”). Accordingly, the ~~May~~August 31, 2019 borrowing base relies upon the valuations set forth in the ~~Annual~~Quarterly Report on Form~~10-K~~10-Q for the ~~year~~period ended ~~February 28,~~May 31, 2019. The valuations presented in this Quarterly Report on Form10-Q will not be incorporated into the borrowing base until after this Quarterly Report on Form10-Q is filed with the SEC.
SBA Debentures
Our wholly-owned SBIC ~~LP is~~subsidiaries are able to borrow funds from the SBA against regulatory capital (which approximates equity capital) that is paid in and is subject to customary regulatory requirements including but not limited to an examination by the SBA.
On August 14, 2019, the Company’s wholly-owned subsidiary, SBIC II LP, received an SBIC license from the SBA. The new license provides up to $175.0 million in additional long-term capital in the form of SBA debentures. As a result of the 2016 omnibus spending bill signed into law in December 2015, the maximum amount ofSBA-guaranteed debentures that affiliated SBIC funds can have outstanding was increased from $225.0 million to $350.0 million. With this license approval, Saratoga will grow its SBA relationship from $150.0 million to $325.0 million of committed capital.
As of ~~May~~August 31, 2019, we have funded SBIC LP with an aggregate total of $75.0 million of equity capital and have $150.0 million of SBA-guaranteed debentures outstanding and have funded SBIC II LP with an aggregate total of $15.8 million of equity capital and have $0.0 million ofSBA-guaranteed debentures outstanding. SBA debentures arenon-recourse to us, have a10-year maturity, and may be prepaid at any time without penalty. The interest rate of SBA debentures is fixed at the time of issuance, often referred to as pooling, at a market-driven spread over10-year U.S. Treasury Notes. SBA current regulations limit the amount that SBIC LP and SBIC II LP may borrow to a maximum of $150.0 million and $175.0 million, respectively, which is up to twice its potential regulatory capital.
SBICs are designed to stimulate the flow of private equity capital to eligible small businesses. Under SBA regulations, SBICs may make loans to eligible small businesses and invest in the equity securities of small businesses. Under present SBA regulations, eligible small businesses include businesses that have a tangible net worth not exceeding $19.5 million and have average annual fully taxed net income not exceeding $6.5 million for the two most recent fiscal years. In addition, an SBIC must devote 25.0% of its investment activity to ‘‘smaller’’ concerns as defined by the SBA. A smaller concern is one that has a tangible net worth not exceeding $6.0 million and has average annual fully taxed net income not exceeding $2.0 million for the two most recent fiscal years. SBA regulations also provide alternative size standard criteria to determine eligibility, which depend on the industry in which the business is engaged and are based on such factors as the number of employees and gross sales. According to SBA regulations, SBICs may make long-term loans to small businesses, invest in the equity securities of such businesses and provide them with consulting and advisory services.
SBIC LP isand SBIC II LP are subject to regulation and oversight by the SBA, including requirements with respect to maintaining certain minimum financial ratios and other covenants. Receipt of an SBIC license does not assure that SBIC II LP will receiveSBA-guaranteed debenture funding, which is dependent upon SBIC II LP continuing to be in compliance with SBA regulations and policies. The SBA, as a creditor, will have a superior claim to SBIC ~~LP’s~~LP and SBIC II LP assets over our stockholders and debtholders in the event we liquidate SBIC LP and SBIC II LP or the SBA exercises its remedies under theSBA-guaranteed debentures issued by SBIC LP and SBIC II LP upon an event of default.
The Company received exemptive relief from the SEC to permit it to exclude the debt of SBIC LP and SBIC II LP guaranteed by the SBA from the definition of senior securities in the 200.0% asset coverage test under the 1940 Act. This allows the Company increased flexibility under the 200.0% asset coverage test by permitting it to borrow up to $150.0 million more than it would otherwise be able to absent the receipt of this exemptive relief. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, thenon-interested board of directors of the Company approved of the Company becoming subject to a minimum asset coverage ratio of 150.0% under Sections 18(a)(1) and 18(a)(2) of the Investment Company Act, as amended. The 150.0% asset coverage ratio became effective on April 16, 2019.
As of ~~May~~August 31, 2019 and February 28, 2019, there was $150.0 million and $150.0 million outstanding of SBA debentures, respectively. The carrying amount of the amount outstanding of SBA debentures approximates its fair value, which is based on a waterfall analysis showing adequate collateral coverage and would be classified as a Level 3 liability within the fair value hierarchy. Financing costs of $5.0 million related to the SBA debentures have been capitalized and are being amortized over the term of the commitment and drawdown.
For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, we recorded $1.2 million and ~~$1.1~~$1.2 million of interest expense related to the SBA debentures, respectively. For the three months ended ~~May~~August 31, 2019 and
~~May~~ August 31, 2018, we recorded $0.1 million and $0.1 million of amortization of deferred financing costs related to the SBA debentures, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. The weighted average interest rate during the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018 on the outstanding borrowings of the SBA debentures was 3.25% and 3.18%, respectively. During the three months ended August 31, 2019 and August 31, 2018, the average dollar amount of SBA debentures outstanding was $150.0 million and $146.3 million, respectively.
For the six months ended August 31, 2019 and August 31, 2018, we recorded $2.4 million and $2.3 million of interest expense related to the SBA debentures, respectively. For the six months ended August 31, 2019 and August 31, 2018, we recorded $0.2 million and $0.3 million of amortization of deferred financing costs related to the SBA debentures, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. The weighted average interest rate during the six months ended August 31, 2019 and August 31, 2018 on the outstanding borrowings of the SBA debentures was 3.25% and 3.17%, respectively. During the ~~three~~six months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, the average dollar amount of SBA debentures outstanding was $150.0 million and ~~$137.7~~$142.0 million, respectively.
In December 2015, the 2016 omnibus spending bill approved by Congress and signed into law by the President increased the amount ofSBA-guaranteed debentures that affiliated SBIC funds can have outstanding from $225.0 million to $350.0 million, subject to SBA approval. SBA regulations ~~currently limit~~previously limited the amount ofSBA-guaranteed debentures that an SBIC may issue to $150.0 million when it has at least $75.0 million in regulatory capital but this has increased to $175.0 million for new licenses when it has at least $87.5 million in regulatory capital. Affiliated SBICs are permitted to issue up to a combined maximum amount of $350.0 million inSBA-guaranteed debentures when they have at least $175.0 million in combined regulatory capital.
On September 27, 2018, the SBA issued a “green light” letter inviting us to file a formal license application for a second SBIC license. If approved, the additional SBIC license would provide the Company with an incremental source of long-term capital by permitting us to issue, subject to SBA approval, up to $175.0 million of additional~~SBA-guaranteed~~ debentures in addition to the $150.0 million already approved under the Company’s first license. Receipt of a green light letter from the SBA does not assure an applicant that the SBA will ultimately issue an SBIC license and the Company has received no assurance or indication from the SBA that it will receive an additional SBIC license, or of the timeframe in which it would receive an additional license, should one ultimately be granted.
Notes
On May 10, 2013, the Company issued $42.0 million in aggregate principal amount of 7.50% fixed-rate notes due 2020 (the “2020 Notes”). The 2020 Notes will mature on May 31, 2020, and since May 31, 2016, may be redeemed in whole or in part at any time or from time to time at the Company’s option. Interest will be payable quarterly beginning August 15, 2013. On May 17, 2013, the Company closed an additional $6.3 million in aggregate principal amount of the 2020 Notes, pursuant to the full exercise of the underwriters’ option to purchase additional 2020 Notes. The 2020 Notes were redeemed in full on January 13, 2017.
On May 29, 2015, the Company entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which the Company may offer for sale, from time to time, up to $20.0 million in aggregate principal amount of the 2020 Notes through an~~At-the-~~At-the-Market ~~Market~~ (“ATM”) offering. Prior to the 2020 Notes being redeemed in full, the Company had sold 539,725 bonds with a principal of $13.5 million at an average price of $25.31 for aggregate net proceeds of $13.4 million (net of transaction costs).
On December 21, 2016, the Company issued $74.5 million in aggregate principal amount of our 6.75% fixed-rate notes due 2023 (the “2023 Notes”) for net proceeds of $71.7 million after deducting underwriting commissions of approximately $2.3 million and offering costs of approximately $0.5 million. The issuance included the exercise of substantially all of the underwriters’ option to purchase an additional $9.8 million aggregate principal amount of 2023 Notes within 30 days. Interest on the 2023 Notes is paid quarterly in arrears on March 15, June 15, September 15 and December 15, at a rate of 6.75% per year, beginning March 30, 2017. The 2023 Notes mature on December 30, 2023 and commencing December 21, 2019, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used to repay all of the outstanding indebtedness under the 2020 Notes, which amounted to $61.8 million, and for general corporate purposes in accordance with our investment objective and strategies. The 2023 Notes are listed on the NYSE under the trading symbol “SAB” with a par value of $25.00 per share. The remaining unamortized deferred debt financing costs of $1.5 million (including underwriting commissions and net of issuance premiums), was recorded within loss on debt extinguishment in the consolidated statements of operations in the fourth quarter of the fiscal year ended February 28, 2017, when the related 2020 Notes were extinguished. As of
~~May~~ August 31, 2019, $2.8 million of financing costs related to the 2023 Notes have been capitalized and are being amortized over the term of the 2023 Notes.
On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of our 6.25% fixed-rate notes due 2025 (the “2025 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.3 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $5.0 million aggregate principal amount of 2025 Notes within 30 days. Interest on the 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning November 30, 2018. The 2025 Notes mature on August 31, 2025 and commencing August 28, 2021, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million of financing costs related to the 2025 Notes have been capitalized and are being amortized over the term of the 2025 Notes.
On February 5, 2019, the Company completed are-opening andup-sizing of its existing 2025 Notes by issuing an additional $20.0 million in aggregate principal amount for net proceeds of $19.2 million after deducting underwriting commissions of approximately $0.6 million and discount of $0.2 million. Offering costs incurred were approximately $0.2 million. The ~~Issuance~~issuance included the full exercise of the underwriters’ option to purchase an additional $2.5 million aggregate principal amount of 2025 Notes within 30 days. Interest rate, interest payment dates and maturity remain unchanged from the existing 2025 Notes issued in August 2018. The net proceeds from this offering were used for general corporate purposes in accordance with our investment objective and strategies. The financing costs and discount of $1.0 million related to the 2025 Notes have been capitalized and are being amortized over the term of the 2025 Notes.
As of ~~May~~August 31, 2019, the total 2025 Notes outstanding was $60.0 million. The 2025 Notes are listed on the NYSE under the trading symbol “SAF” with a par value of $25.00 per share.
As of ~~May~~August 31, 2019, the carrying amount and fair value of the 2025 Notes was $60.0 million and ~~$60.7~~$61.9 million, respectively, and the carrying amount and fair value of the 2023 Notes was $74.5 million and ~~$76.8~~$76.7 million, respectively. The fair value of the 2025 Notes and 2023 Notes, which both are publicly traded, is based upon closing market quotes as of the measurement date and would be classified as a Level 1 liability within the fair value hierarchy. As of February 28, 2019, the carrying amount and fair value of the 2025 Notes was $60.0 million and $59.9 million, respectively, and the carrying amount and fair value of the 2023 Notes was $74.5 million and $76.4 million, respectively.
For the three months ended ~~May~~August 31, 2019 and August 31, 2018, we recorded $0.9 million and $0.03 million, respectively, of interest expense and ~~$0.1~~$0.09 million and $0.00 million, respectively, of amortization of deferred financing costs related to the 2025 Notes. ~~For~~Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended ~~May~~August 31, 2019 and August 31, 2018, the average dollar amount of 2025 Notes outstanding was $60.0 ~~million.~~million and $1.8 million, respectively.
For the six months ended August 31, 2019 and August 31, 2018, we recorded $1.9 million and $0.03 million, respectively, of interest expense and $0.2 million and $0.00 million, respectively, of amortization of deferred financing costs related to the 2025 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2019 and August 31, 2018, the average dollar amount of 2025 Notes outstanding was $60.0 million and $0.9 million, respectively.
For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, we recorded $1.3 million and $1.3 million, respectively, of interest expense and $0.1 million and $0.1 million, respectively, of amortization of deferred financing ~~cost~~costs related to the 2023 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, the average dollar amount of 2023 Notes outstanding was $74.5 million and $74.5 million, respectively.
For the six months ended August 31, 2019 and August 31, 2018, we recorded $2.5 million and $2.5 million, respectively, of interest expense and $0.2 million and $0.2 million, respectively, of amortization of deferred financing costs related to the 2023 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2019 and August 31, 2018, the average dollar amount of 2023 Notes outstanding was $74.5 million and $74.5 million respectively.
Note 8. Commitments and contingencies
Contractual obligations
The following table shows our payment obligations for repayment of debt and other contractual obligations at ~~May~~August 31, 2019:


   Total    Payment Due by Period       Payment Due by Period
Long-Term Debt Obligations
   Less Than
1 Year    1 - 3
Years    3 - 5
Years    More Than
5 Years    Total    Less Than
1 Year    1 - 3
Years    3 - 5
Years    More Than
5 Years
   ($ in thousands)          ($ in thousands)
Revolving credit facility
   $ —      $ —      $ —      $ —      $ —      $ —      $ —      $ —      $ —      $ —
SBA debentures
   150,000    —      —      50,000    100,000    150,000    —      —      64,000    86,000
2023 Notes
   74,451    —      —      74,451    —      74,451    —      —      74,451    —
2025 Notes
   60,000    —      —      —      60,000    60,000    —      —      —      60,000




















Total Long-Term Debt Obligations
   $ 284,451    $ —      $ —      $ 124,451    $ 160,000    $ 284,451    $ —      $ —      $ 138,451    $ 146,000




















Off-balance sheet arrangements
As of ~~May~~August 31, 2019 and February 28, 2019, the Company’soff-balance sheet arrangements consisted of ~~$24.5~~$26.0 million and $4.5 million, respectively, of unfunded commitments outstanding to provide debt financing to its portfolio companies or to fund limited partnership interests. Such commitments are generally up to the Company’s discretion to approve, or the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’s consolidated statements of assets and liabilities and are not reflected in the Company’s consolidated statements of assets and liabilities.
A summary of the unfunded commitments outstanding as of ~~May~~August 31, 2019 and February 28, 2019 is shown in the table below (dollars in thousands):


   May 31, 2019    February 28, 2019    August 31, 2019    February 28, 2019
At Company’s discretion

Omatic Software, LLC
   $ 1,000    $ 1,000
inMotionNow, Inc.
   3,000    —
PDDS Buyer, LLC
   5,000    —
Top Gun Pressure Washing, LLC
   5,000    —




   14,000    1,000




At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required

Axiom Purchaser, Inc.
   $ 1,000    $ 1,000    1,000    1,000
CoConstruct, LLC
   3,500    —
Destiny Solutions, Inc.
   1,500    1,500    1,500    1,500
Fancy Chap, Inc.
   14,000    —      —      —
GDS Holdings US, Inc.
   —      1,000    —      1,000
HemaTerra Holding Company, LLC
   2,000    —
Hema Terra Holding Company, LLC
   4,000    —
inMotionNow, Inc.
   5,000    —      2,000    —
Omatic Software, LLC
   1,000    1,000




   12,000    3,500








Total
   $ 24,500    $ 4,500    $ 26,000    $ 4,500








Note 9. Directors Fees
The independent directors receive an annual fee of $60,000. They also receive $2,500 plus reimbursement of reasonable~~out-of-~~out-of-pocket ~~pocket~~ expenses incurred in connection with attending each board meeting and receive $1,000 plus reimbursement of reasonable~~out-of-~~out-of-pocket ~~pocket~~ expenses incurred in connection with attending each committee meeting. In addition, the chairman of the Audit Committee receives an annual fee of $10,000 and the chairman of each other committee receives an annual fee of $5,000 for their additional services in these capacities. In addition, we have purchased directors’ and officers’ liability insurance on behalf of our directors and officers. Independent directors have the option to receive their directors’ fees in the form of our common stock issued at a price per share equal to the greater of net asset value or the market price at the time of payment. No compensation is paid to directors who are “interested persons” of the Company (as such term is defined in the 1940 Act). For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, we incurred $0.1 million and ~~$0.1~~$0.08 million for directors’ fees and expenses, respectively. For the six months ended August 31, 2019 and August 31, 2018, we incurred $0.2 million and $0.2 million for directors’ fees and expenses, respectively. As of ~~May~~August 31, 2019 and February 28, 2019,
~~$0.06~~ $0.08 million and $0.06 million in directors’ fees and expenses were accrued and unpaid, respectively. As of ~~May~~August 31, 2019, we had not issued any common stock to our directors as compensation for their services.
Note 10. Stockholders’ Equity
On May 16, 2006, GSC Group, Inc. capitalized the LLC, by contributing $1,000 in exchange for 67 shares, constituting all of the issued and outstanding shares of the LLC.
On March 20, 2007, the Company issued 95,995.5 and 8,136.2 shares of common stock, priced at $150.00 per share, to GSC Group and certain individual employees of GSC Group, respectively, in exchange for the general partnership interest and a limited partnership interest in GSC Partners CDO III GP, LP, collectively valued at $15.6 million. At this time, the 6.7 shares owned by GSC Group in the LLC were exchanged for 6.7 shares of the Company.
On March 28, 2007, the Company completed its IPO of 725,000 shares of common stock, priced at $150.00 per share, before underwriting discounts and commissions. Total proceeds received from the IPO, net of $7.1 million in underwriter’s discount and commissions, and $1.0 million in offering costs, were $100.7 million.
On July 30, 2010, our Manager and its affiliates purchased 986,842 shares of common stock at $15.20 per share. Total proceeds received from this sale were $15.0 million.
On August 12, 2010, we effected aone-for-ten reverse stock split of our outstanding common stock. As a result of the reverse stock split, every ten shares of our common stock were converted into one share of our common stock. Any fractional shares received as a result of the reverse stock split were redeemed for cash. The total cash payment in lieu of shares was $230. Immediately after the reverse stock split, we had 2,680,842 shares of our common stock outstanding.
On September 24, 2014, the Company announced the approval of an open market share repurchase plan that allowed it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published consolidated financial statements. On October 7, 2015, the Company’s board of directors extended the open market share repurchase plan for another year and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 400,000 shares of its common stock. On October 5, 2016, the Company’s board of directors extended the open market share repurchase plan for another year to October 15, 2017 and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 600,000 shares of its common stock. On October 10, 2017 and January 8, 2019, the Company’s board of directors extended the open market share repurchase plan for another year to October 15, 2018 and January 15, 2020, respectively, each time leaving the number of shares unchanged at 600,000 shares of its common stock. As of ~~May~~August 31, 2019, the Company purchased 218,491 shares of common stock, at the average price of $16.87 for approximately $3.7 million pursuant to this repurchase plan.
On March 16, 2017, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc., through which we may offer for sale, from time to time, up to $30.0 million of our common stock through an ATM offering. Subsequent to this, BB&T Capital Markets and B. Riley FBR, ~~Inc~~Inc. were also added to the agreement. On July 9, 2019, the amount of the common stock to be offered ~~through this offering~~ was increased to $70.0 million, and on October 8, 2019, the amount of the common stock to be offered was increased to $130.0 million. As of ~~May~~August 31, 2019, the Company sold ~~571,120~~1,942,786 shares for gross proceeds of ~~$13.0~~$47.1 million at an average price of ~~$22.78~~$24.25 for aggregate net proceeds of ~~$12.9~~$46.5 million (net of transaction costs).
For the three months ended August 31, 2019, the Company sold 1,371,667 shares for gross proceeds of $34.1 million at an average price of $24.86 for aggregate net proceeds of $33.6 million (net of transaction costs).
For the six months ended August 31, 2019, the Company sold 1,448,115 shares for gross proceeds of $35.9 million at an average price of $24.77 for aggregate net proceeds of $35.4 million (net of transaction costs).
On July 13, 2018, the Company issued 1,150,000 shares of its common stock priced at $25.00 per share (par value $0.001 per share) at an aggregate total of $28.75 million. The net proceeds, after deducting underwriting commissions of $1.15 million and offering costs of approximately $0.2 million, amounted to approximately $27.4 million. The Company also granted the underwriters a30-day option to purchase up to an additional 172,500 shares of its common stock, which was not exercised.
The Company elected early adoption of Rule3-04/Rule8-03(a)(5) under RegulationS-X (Note 2). Pursuant to the regulation, the Company has presented a reconciliation of the changes in each significant caption of stockholders’ equity as shown in the table below:

   Common Stock    Capital
in Excess
of Par Value Total
Distributable
Earnings (Loss) Net Assets          Capital Total
   Shares    Amount    Shares    Amount    of Par Value Earnings (Loss) Net Assets
Balance at February 28, 2018
   6,257,029    $ 6,257    $ 188,975,590 $ (45,290,480 ) $ 143,691,367    6,257,029    $ 6,257    $ 188,975,590 $ (45,290,480 ) $ 143,691,367
Cumulative effect of the adoption of ASC 606 (Note 2)
   —      —      —   (65,300 ) (65,300 )    —      —      —   (65,300 ) (65,300 )












Balance at March 1, 2018
   6,257,029    6,257    188,975,590 (45,355,780 ) 143,626,067    6,257,029    6,257    188,975,590 (45,355,780 ) 143,626,067












Increase (Decrease) from Operations:

Net investment income
   —      —      —   3,927,648 3,927,648    —      —      —   3,927,648 3,927,648
Net realized gain (loss) from investments
   —      —      —   212,008 212,008    —      —      —   212,008 212,008
Net change in unrealized appreciation (depreciation) on investments
   —      —      —   643,205 643,205    —      —      —   643,205 643,205
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments
   —      —      —   (940,546 ) (940,546 )    —      —      —   (940,546 ) (940,546 )
Decrease from Shareholder Distributions:

Distributions of investment income—net
   —      —      —   (3,128,513 ) (3,128,513 )
Distributions of investment income – net
   —      —      —   (3,128,513 ) (3,128,513 )
Capital Share Transactions:

Proceeds from issuance of common stock
   —      —      —   —   —      —      —      —   —   —
Stock dividend distribution
   25,355    25    504,853 —   504,878    25,355    25    504,853 —   504,878
Repurchases of common stock
   —      —      —   —   —      —      —      —   —   —
Offering costs
   —      —      —   —   —      —      —      —   —   —












Balance at May 31, 2018
   6,282,384    6,282    189,480,443 (44,641,978 ) 144,844,747    6,282,384    6,282    189,480,443 (44,641,978 ) 144,844,747












Increase (Decrease) from Operations:

Net investment income
   —      —      —   5,144,228 5,144,228    —      —      —   5,144,228 5,144,228
Net realized gain (loss) from investments
   —      —      —   163 163    —      —      —   163 163
Net change in unrealized appreciation (depreciation) on investments
   —      —      —   (2,154,521 ) (2,154,521 )    —      —      —   (2,154,521 ) (2,154,521 )
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments
   —      —      —   152,546 152,546    —      —      —   152,546 152,546
Decrease from Shareholder Distributions:

Distributions of investment income—net
   —      —      —   (3,204,014 ) (3,204,014 )
Distributions of investment income – net
   —      —      —   (3,204,014 ) (3,204,014 )
Capital Share Transactions:

Proceeds from issuance of common stock
   1,150,000    1,150    28,748,850 —   28,750,000    1,150,000    1,150    28,748,850 —   28,750,000
Stock dividend distribution
   21,563    22    511,523 —   511,545    21,563    22    511,523 —   511,545
Repurchases of common stock
   —      —      —   —   —      —      —      —   —   —
Offering costs
   —      —      (1,386,667 ) —   (1,386,667 )    —      —      (1,386,667 ) —   (1,386,667 )












Balance at August 31, 2018
   7,453,947    7,454    217,354,149 (44,703,576 ) 172,658,027    7,453,947    7,454    217,354,149 (44,703,576 ) 172,658,027












Increase (Decrease) from Operations:

Net investment income
   —      —      —   5,138,941 5,138,941
Net realized gain (loss) from investments
   —      —      —   (67,164 ) (67,164 )
Net change in unrealized appreciation (depreciation) on investments
   —      —      —   (1,031,113 ) (1,031,113 )
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments
   —      —      —   (371,581 ) (371,581 )
Decrease from Shareholder Distributions:

Distributions of investment income – net
   —      —      —   (3,876,050 ) (3,876,050 )
Capital Share Transactions:

Proceeds from issuance of common stock
   10,373    10    241,228 —   241,238
Stock dividend distribution
   25,863    26    578,057 —   578,083
Repurchases of common stock
   —      —      —   —   —
Offering costs
   —      —      (1,290 ) —   (1,290 )






Balance at November 30, 2018
   7,490,183    7,490    218,172,144 (44,910,543 ) 173,269,091






Increase (Decrease) from Operations:

Net investment income
   —      —      —   4,091,392 4,091,392
Net realized gain (loss) from investments
   —      —      —   4,729,298 4,729,298
Net change in unrealized appreciation (depreciation) on investments
   —      —      —   (357,880 ) (357,880 )
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments
   —      —      —   (607,254 ) (607,254 )
Decrease from Shareholder Distributions:

Distributions of investment income – net
   —      —      —   (3,980,011 ) (3,980,011 )
Capital Share Transactions:

Proceeds from issuance of common stock
   136,176    136    3,158,783 —   3,158,919
Stock dividend distribution
   30,797    31    581,356 —   581,387
Repurchases of common stock
   —      —      —   —   —
Offering costs
   —      —      (9,755 ) —   (9,755 )
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles
   —      —      (18,349,728 ) 18,349,728 —






Balance at February 28, 2019
   7,657,156    $ 7,657    $ 203,552,800 $ (22,685,270 ) $ 180,875,187






Increase (Decrease) from Operations:

Net investment income
   —      —      —   3,680,788 3,680,788
Net realized gain (loss) from investments
   —      —      —   —   —
Net change in unrealized appreciation (depreciation) on investments
   —      —      —   3,989,130 3,989,130
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments
   —      —      —   (20,930 ) (20,930 )
Decrease from Shareholder Distributions:

Distributions of investment income – net
   —      —      —   (4,176,132 ) (4,176,132 )
Capital Share Transactions:

Proceeds from issuance of common stock
   76,448    77    1,772,557 —   1,772,634
Stock dividend distribution
   31,240    31    667,358 —   667,389
Repurchases of common stock
   —      —      —   —   —
Offering costs
   —      —      (4,365 ) —   (4,365 )






Balance at May 31, 2019
   7,764,844    $ 7,765    $ 205,988,350 $ (19,212,414 ) $ 186,783,701






Increase (Decrease) from Operations:

Net investment income
   —      —      —   4,956,074 4,956,074
Net realized gain (loss) from investments
   —      —      —   1,870,089 1,870,089
Net change in unrealized appreciation (depreciation) on investments
   —      —      —   1,457,872 1,457,872
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments
   —      —      —   (704,263 ) (704,263 )
Decrease from Shareholder Distributions:

Distributions of investment income – net
   —      —      —   (4,336,226 ) (4,336,226 )
Capital Share Transactions:

Proceeds from issuance of common stock
   1,371,667    1,371    34,101,012 —   34,102,383
Stock dividend distribution
   31,545    32    714,497 —   714,529
Repurchases of common stock
   —      —      —   —   —
Offering costs
   —      —      (507,592 ) —   (507,592 )






Balance at August 31, 2019
   9,168,056    $ 9,168    $ 240,296,267 $ (15,968,868 ) $ 224,336,567






   Common Stock    Capital
in Excess
of Par Value Total
Distributable
Earnings (Loss) Net Assets
   Shares    Amount
Increase (Decrease) from Operations:

Net investment income
   —      —      —   5,138,941 5,138,941
Net realized gain (loss) from investments
   —      —      —   (67,164 ) (67,164 )
Net change in unrealized appreciation (depreciation) on investments
   —      —      —   (1,031,113 ) (1,031,113 )
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments
   —      —      —   (371,581 ) (371,581 )
Decrease from Shareholder Distributions:

Distributions of investment income—net
   —      —      —   (3,876,050 ) (3,876,050 )
Capital Share Transactions:

Proceeds from issuance of common stock
   10,373    10    241,228 —   241,238
Stock dividend distribution
   25,863    26    578,057 —   578,083
Repurchases of common stock
   —      —      —   —   —
Offering costs
   —      —      (1,290 ) —   (1,290 )






Balance at November 30, 2018
   7,490,183    7,490    218,172,144 (44,910,543 ) 173,269,091






Increase (Decrease) from Operations:

Net investment income
   —      —      —   4,091,392 4,091,392
Net realized gain (loss) from investments
   —      —      —   4,729,298 4,729,298
Net change in unrealized appreciation (depreciation) on investments
   —      —      —   (357,880 ) (357,880 )
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments
   —      —      —   (607,254 ) (607,254 )
Decrease from Shareholder Distributions:

Distributions of investment income— net
   —      —      —   (3,980,011 ) (3,980,011 )
Capital Share Transactions:

Proceeds from issuance of common stock
   136,176    136    3,158,783 —   3,158,919
Stock dividend distribution
   30,797    31    581,356 —   581,387
Repurchases of common stock
   —      —      —   —   —
Offering costs
   —      —      (9,755 ) —   (9,755 )
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles
   —      —      (18,349,728 ) 18,349,728 —






Balance at February 28, 2019
   7,657,156    $ 7,657    $ 203,552,800 $ (22,685,270 ) $ 180,875,187






   Common Stock    Capital
in Excess
of Par Value Total
Distributable
Earnings (Loss) Net Assets
   Shares    Amount
Increase (Decrease) from Operations:

Net investment income
   —      —      —   3,680,788 3,680,788
Net realized gain (loss) from investments
   —      —      —   —   —
Net change in unrealized appreciation (depreciation) on investments
   —      —      —   3,989,130 3,989,130
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments
   —      —      —   (20,930 ) (20,930 )
Decrease from Shareholder Distributions:

Distributions of investment income—net
   —      —      —   (4,176,132 ) (4,176,132 )
Capital Share Transactions:

Proceeds from issuance of common stock
   76,448    77    1,772,557 —   1,772,634
Stock dividend distribution
   31,240    31    667,358 —   667,389
Repurchases of common stock
   —      —      —   —   —
Offering costs
   —      —      (4,365 ) —   (4,365 )






Balance at May 31, 2019
   7,764,844    $ 7,765    $ 205,988,350 $ (19,212,414 ) $ 186,783,701






Note 11. Earnings Per Share
In accordance with the provisions of FASB ASC Topic 260, “Earnings per Share” (“ASC 260”), basic earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis.
The following information sets forth the computation of the weighted average basic and diluted net increase in net assets resulting from operations per share for the three and six months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018 (dollars in thousands except share and per share amounts):

   For the three months ended    For the three months ended    For the six months ended
Basic and Diluted
       May 31, 2019            May 31, 2018        August 31,
2019    August 31,
2018    August 31,
2019    August 31,
2018
Net increase in net assets resulting from operations
   $ 7,649    $ 3,842    $ 7,580    $ 3,143    $ 15,229    $ 6,985
Weighted average common shares outstanding
   7,746,187    6,275,494    8,333,570    6,915,966    8,041,365    6,597,324
Weighted average earnings per common share
   $ 0.99    $ 0.61    $ 0.91    $ 0.45    $ 1.89    $ 1.06
Note 12. Dividend
On May 28, 2019, the Company declared a dividend of $0.55 per share, which was paid on June 27, 2019, to common stockholders of record on June 13, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $3.6 million in cash and 31,545 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $22.65 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on June 14, 17, 18, 19, 20, 21, 24, 25, 26 and 27, 2019.
On February 26, 2019, our board of directors declared a dividend of $0.54 per share, which was paid on March 28, 2019, to common stockholders of record as of March 14, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $3.5 million in cash and 31,240 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.36 per share, which equaled the volume weighted average trading price per share of the common stock on March 15, 18, 19, 20, 21, 22, 25, 26, 27 and 28, 2019.
The following table summarizes dividends declared for the ~~three~~six months ended ~~May~~August 31, 2019 (dollars in thousands except per share amounts):


Date Declared
   Record Date    Payment Date    Amount Per Share    Total Amount*    Record Date    Payment Date    Amount
Per Share    Total
Amount*
May 28, 2019
   June 13, 2019    June 27, 2019    $ 0.55    $ 4,336
February 26, 2019
   March 14, 2019    March 28, 2019    $ 0.54    $ 4,176    March 14, 2019    March 28, 2019    0.54    4,176








Total dividends declared
         $ 0.54    $ 4,176          $ 1.09    $ 8,512








*
Total amount is calculated based on the number of shares outstanding at the date of record.
The following table summarizes dividends declared for the ~~three~~six months ended ~~May~~August 31, 2018 (dollars in thousands except per share amounts):


Date Declared
   Record Date    Payment Date    Amount Per Share    Total Amount*    Record Date    Payment Date    Amount
Per Share    Total
Amount*
May 30, 2018
   June 15, 2018    June 27, 2018    $ 0.51    $ 3,204
February 26, 2018
   March 14, 2018    March 26, 2018    $ 0.50    $ 3,129    March 14, 2018    March 26, 2018    0.50    3,129








Total dividends declared
         $ 0.50    $ 3,129          $ 1.01    $ 6,333








*
Total amount is calculated based on the number of shares outstanding at the date of record.
Note 13. Financial Highlights
The following is a schedule of financial highlights as of and for the ~~three~~six months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018:

Per share data    May 31, 2019 May 31, 2018
Net asset value at beginning of period
   $ 23.62 $ 22.96
Adoption of ASC 606
   —   (0.01 )


Net asset value at beginning of period, as adjusted
   23.62 22.95
Net investment income(1)
   0.48 0.63
Net realized and unrealized gains and losses on investments(1)
   0.51 (0.02 )


Net increase in net assets resulting from operations
   0.99 0.61
Distributions declared from net investment income
   (0.54 ) (0.50 )


Total distributions to stockholders
   (0.54 ) (0.50 )
Dilution(2)
   (0.01 ) —


Net asset value at end of period
   $ 24.06 $ 23.06


Net assets at end of period
   $ 186,783,701 $ 144,844,747
Shares outstanding at end of period
   7,764,844 6,282,384
Per share market value at end of period
   $ 24.65 $ 22.79
Total return based on market value(3)(4)
   9.69 % 12.51 %
Total return based on net asset value(3)(5)
   4.42 % 2.96 %
Ratio/Supplemental data:

Ratio of net investment income to average net assets(6)
   11.39 % 12.60 %
Expenses:

Ratio of operating expenses to average net assets(7)
   6.69 % 7.60 %
Ratio of incentive management fees to average net assets(3)
   1.15 % 0.74 %
Ratio of interest and debt financing expenses to average net assets(7)
   8.37 % 7.49 %


Ratio of total expenses to average net assets(6)
   16.21 % 15.83 %
Portfolio turnover rate(3)(8)
   6.63 % 10.26 %
Asset coverage ratio per unit(9)
   2,389 2,946
Average market value per unit

Credit Facility(10)
   N/A N/A
SBA Debentures(10)
   N/A N/A
2023 Notes
   $ 25.78 $ 25.71
2025 Notes
   $ 25.28 N/A
Per share data    August 31, 2019 August 31, 2018
Net asset value at beginning of period
   $ 23.62 $ 22.96
Adoption of ASC 606
   —   (0.01 )


Net asset value at beginning of period, as adjusted
   23.62 22.95
Net investment income(1)
   1.07 1.38
Net realized and unrealized gains and losses on investments(1)
   0.82 (0.32 )


Net increase in net assets resulting from operations
   1.89 1.06
Distributions declared from net investment income
   (1.09 ) (1.01 )


Total distributions to stockholders
   (1.09 ) (1.01 )
Issuance of common stock above net asset value(2)
   0.05 0.16


Net asset value at end of period
   $ 24.47 $ 23.16


Net assets at end of period
   $ 224,336,567 $ 172,658,027
Shares outstanding at end of period
   9,168,056 7,453,947
Per share market value at end of period
   $ 25.16 $ 24.85
Total return based on market value(3)(4)
   14.68 % 19.04 %
Total return based on net asset value(3)(5)
   8.80 % 5.63 %
Ratio/Supplemental data:

Ratio of net investment income to average net assets(6)
   10.81 % 12.69 %
Expenses:

Ratio of operating expenses to average net assets(7)
   6.12 % 6.90 %
Ratio of incentive management fees to average net assets(3)
   2.13 % 1.23 %
Ratio of interest and debt financing expenses to average net assets(7)
   7.79 % 7.21 %


Ratio of total expenses to average net assets(6)
   16.04 % 15.34 %
Portfolio turnover rate(3)(8)
   10.97 % 10.44 %
Asset coverage ratio per unit(9)
   2,669 2,509
Average market value per unit

Credit Facility(10)
   N/A N/A
SBA Debentures(10)
   N/A N/A
2023 Notes
   $ 25.75 $ 25.81
2025 Notes
   $ 25.80 $ 25.08

(1)
Per share amounts are calculated using the weighted average shares outstanding during the period.
(2)
~~Represents~~The continuous issuance of common stock may cause an incremental increase in net asset value per share due to the sale of shares at the then prevailing public offering price and the receipt of net proceeds per share by the Company in excess of net asset value per share on each subscription closing date, offset by the dilutive effect of issuing common stock below net asset value per share during the period in connection with the satisfaction of the Company’s annual RIC distribution requirement and may include the impact of the different share amounts used for different items (weighted average basic common shares outstanding for the corresponding year and actual common shares outstanding at the end of the year) in the per common share data calculation and rounding impacts. See Note 12, Dividend.
(3)
Ratios are not annualized.
(4)
Total investment return is calculated assuming a purchase of common shares at the current market value on the first day and a sale at the current market value on the last day of the periods reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company’s DRIP. Total investment return does not reflect brokerage commissions.
(5)
Total investment return is calculated assuming a purchase of common shares at the current net asset value on the first day and a sale at the current net asset value on the last day of the periods reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company’s DRIP. Total investment return does not reflect brokerage commissions.
(6)
Ratios are annualized. Incentive management fees included within the ratio are not annualized.
(7)
Ratios are annualized.
(8)
Portfolio turnover rate is calculated using the lesser ofyear-to-date sales oryear-to-date purchases over the average of the invested assets at fair value.
(9)
Asset coverage ratio per unit is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage ratio per unit is expressed in terms of dollar amounts per $1,000 of indebtedness. Asset coverage ratio per unit does not include unfunded commitments. The inclusion of unfunded commitments in the calculation of the asset coverage ratio per unit would not cause us to be below the required amount of regulatory coverage.
(10)
The Credit Facility and SBA Debentures are not registered for public trading.
Note 14. Subsequent Events
The Company has evaluated subsequent events through the filing of this Form10-Q and determined that there have been no events that have occurred that would require adjustments to the Company’s consolidated financial statements and disclosures in the consolidated financial statements except for the following:
On ~~May 28,~~August 27, 2019, the Company declared a dividend of ~~$0.55~~$0.56 per share ~~which was paid~~payable on ~~June 27,~~September 26, 2019, to common stockholders of record ~~as of June~~on September 13, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately ~~$3.6~~$4.5 million in cash and ~~31,545~~34,575 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of ~~$22.65~~$23.34 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on ~~June 14,~~September 13, 16, 17, 18, 19, 20, ~~21,~~23, 24, 25 26 and ~~27,~~26, 2019.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form10-Q. In addition to historical information, the following discussion and other parts of this Quarterly Report containforward-looking information that involves risks and uncertainties. Our actual results could differ materially from those anticipated by suchforward-looking information due to the factors discussed under “Note about Forward-Looking Statements” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form10-K for the fiscal year ended February 28, 2019.
The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or are within our control. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in ourforward-looking statements.
The forward-looking statements contained in this Quarterly Report on Form10-Q involve risks and uncertainties, including statements as to:

our future operating results;

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

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

the relative and absolute investment performance and operations of our Investment Adviser;

the impact of increased competition;

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

the unfavorable resolution of any future legal proceedings;

our business prospects and the prospects of our portfolio companies;

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

our contractual arrangements and relationships with third parties;

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

the ability of our portfolio companies to achieve their objectives;

our expected financings and investments;

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

the adequacy of our cash resources and working capital;

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

the impact of interest rate volatility on our results, particularly because we use leverage as part of our investment strategy;

the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to us or our investment adviser;
the impact of changes to tax legislation and, generally, our tax position;

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

the ability of our Investment Adviser to attract and retain highly talented professionals; and

the ability of our Investment Adviser to locate suitable investments for us and to monitor and effectively administer our investments.
Such forward-looking statements may include statements preceded by, followed by or that otherwise include terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “will” and “would” or the negative of these terms or other comparable terminology.
We have based the forward-looking statements included in this quarterly report on Form10-Q on information available to us on the date of this quarterly report on Form10-Q, and we assume no obligation to update any suchforward-looking statements. Actual results could differ materially from those anticipated in ourforward-looking statements, and future results could differ materially from historical performance. We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law or SEC rule or regulation. You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form10-K, quarterly reports on Form10-Q and current reports on Form8-K.
The following analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes thereto contained elsewhere in this quarterly report on Form10-Q.
OVERVIEW
We are a Maryland corporation that has elected to be treated as a BDC under the Investment Company Act of 1940, as amended (the “1940 Act”). Our investment objective is to create attractive risk-adjusted returns by generating current income and long-term capital appreciation from our investments. We invest primarily in senior and unitranche leveraged loans and mezzanine debt issued by private U.S. middle market companies, which we define as companies having earnings before interest, tax, depreciation and amortization (“EBITDA”) of between $2 million and $50 million, both through direct lending and through participation in loan syndicates. We may also invest up to 30.0% of the portfolio in opportunistic investments in order to seek to enhance returns to stockholders. Such investments may include investments in distressed debt, which may include securities of companies in bankruptcy, foreign debt, private equity, securities of public companies that are not thinly traded and structured finance vehicles such as collateralized loan obligation funds. Although we have no current intention to do so, to the extent we invest in private equity funds, we will limit our investments in entities that are excluded from the definition of “investment company” under Section 3(c)(1) or Section 3(c)(7) of the 1940 Act, which includes private equity funds, to no more than 15.0% of its net assets. We have elected and qualified to be treated as a RIC under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).
Corporate History and Recent Developments
We commenced operations, at the time known as GSC Investment Corp., on March 23, 2007 and completed an initial public offering of shares of common stock on March 28, 2007. Prior to July 30, 2010, we were externally managed and advised by GSCP (NJ), L.P., an entity affiliated with GSC Group, Inc. In connection with the consummation of a recapitalization transaction on July 30, 2010, as described below we engaged Saratoga Investment Advisors (“SIA”) to replace GSCP (NJ), L.P. as our investment adviser and changed our name to Saratoga Investment Corp.
As a result of the event of default under a revolving securitized credit facility with Deutsche Bank we previously had in place, in December 2008 we engaged the investment banking firm of Stifel, Nicolaus &
Company to evaluate strategic transaction opportunities and consider alternatives for us. On April 14, 2010, GSC Investment Corp. entered into a stock purchase agreement with Saratoga Investment Advisors and certain of its affiliates and an assignment, assumption and novation agreement with Saratoga Investment Advisors, pursuant to which GSC Investment Corp. assumed certain rights and obligations of Saratoga Investment Advisors under a debt commitment letter Saratoga Investment Advisors received from Madison Capital Funding LLC, which indicated Madison Capital Funding’s willingness to provide GSC Investment Corp. with a $40.0 million senior secured revolving credit facility, subject to the satisfaction of certain terms and conditions. In addition, GSC Investment Corp. and GSCP (NJ), L.P. entered into a termination and release agreement, to be effective as of the closing of the transaction contemplated by the stock purchase agreement, pursuant to which GSCP (NJ), L.P., among other things, agreed to waive any and all accrued and unpaid deferred incentive management fees up to and as of the closing of the transaction contemplated by the stock purchase agreement but continued to be entitled to receive the base management fees earned through the date of the closing of the transaction contemplated by the stock purchase agreement.
On July 30, 2010, the transactions contemplated by the stock purchase agreement with Saratoga Investment Advisors and certain of its affiliates were completed, the private sale of 986,842 shares of our common stock for $15.0 million in aggregate purchase price to Saratoga Investment Advisors and certain of its affiliates closed, the Company entered into the Credit Facility, and the Company began doing business as Saratoga Investment Corp.
We used the net proceeds from the private sale transaction and a portion of the funds available to us under the Credit Facility to pay the full amount of principal and accrued interest, including default interest, outstanding under our revolving securitized credit facility with Deutsche Bank. The revolving securitized credit facility with Deutsche Bank was terminated in connection with our payment of all amounts outstanding thereunder on July 30, 2010.
On August 12, 2010, we effected aone-for-ten reverse stock split of our outstanding common stock. As a result of the reverse stock split, every ten shares of our common stock were converted into one share of our common stock. Any fractional shares received as a result of the reverse stock split were redeemed for cash. The total cash payment in lieu of shares was $230. Immediately after the reverse stock split, we had 2,680,842 shares of our common stock outstanding.
In January 2011, we registered for public resale of the 986,842 shares of our common stock issued to Saratoga Investment Advisors and certain of its affiliates.
On March 28, 2012, our wholly-owned subsidiary, Saratoga Investment Corp. SBIC, LP (“SBIC LP”), received an SBIC license from the Small Business Administration (“SBA”).
In May 2013, we issued $48.3 million in aggregate principal amount of our 7.50% fixed-rate unsecured notes due 2020 (the “2020 Notes”) for net proceeds of $46.1 million after deducting underwriting commissions of $1.9 million and offering costs of $0.3 million. The proceeds included the underwriters’ full exercise of their overallotment option. The 2020 Notes were listed on the NYSE under the trading symbol “SAQ” with a par value of $25.00 per share. The 2020 Notes were redeemed in full on January 13, 2017.
On May 29, 2015, we entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which we may offer for sale, from time to time, up to $20.0 million in aggregate principal amount of the 2020 Notes through anAt-the-Market (“ATM”) offering. Prior to the 2020 Notes being redeemed in full, the Company had sold 539,725 bonds with a principal of $13.5 million at an average price of $25.31 for aggregate net proceeds of $13.4 million (net of transaction costs).
On December 21, 2016, we issued $74.5 million in aggregate principal amount of our 6.75% fixed-rate unsecured notes due 2023 (the “2023 Notes”) for net proceeds of $71.7 million after deducting underwriting commissions of approximately $2.3 million and offering costs of approximately $0.5 million. The issuance
included the exercise of substantially all of the underwriters’ option to purchase an additional $9.8 million aggregate principal amount of 2023 Notes within 30 days. Interest on the 2023 Notes is paid quarterly in arrears on March 15, June 15, September 15 and December 15, at a rate of 6.75% per year, beginning March 30, 2017. The 2023 Notes mature on December 20, 2023, and commencing December 21, 2019, may be redeemed in whole or in part at any time or from time to time at our option. The 2023 Notes are listed on the NYSE under the trading symbol “SAB” with a par value of $25.00 per share.
On March 16, 2017, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc., through which we may offer for sale, from time to time, up to $30.0 million of our common stock through an ATM offering. Subsequent to this, BB&T Capital Markets and B. Riley FBR, Inc. were also added to the agreement. On July 9, 2019, the amount of the common stock to be offered through this offering was increased to $70.0 million, and on October 8, 2019, the amount of the common stock to be offered was increased to $130.0 million. As of ~~May~~August 31, 2019, the Company sold ~~571,120~~1,942,786 shares for gross proceeds of ~~$13.0~~$47.1 million at an average price of ~~$22.78~~$24.25 for aggregate net proceeds of ~~$12.9~~$46.5 million (net of transaction costs).
For the three months ended August 31, 2019, the Company sold 1,371,667 shares for gross proceeds of $34.1 million at an average price of $24.86 for aggregate net proceeds of $33.6 million (net of transaction costs).
For the six months ended August 31, 2019, the Company sold 1,448,115 shares for gross proceeds of $35.9 million at an average price of $24.77 for aggregate net proceeds of $35.4 million (net of transaction costs).
On July 13, 2018, the Company issued 1,150,000 shares of its common stock priced at $25.00 per share (par value $0.001 per share) at an aggregate total of $28.75 million. The net proceeds, after deducting underwriting commissions of $1.15 million and offering costs of approximately $0.2 million, amounted to approximately $27.4 million. The Company also granted the underwriters a30-day option to purchase up to an additional 172,500 shares of its common stock, which was not exercised.
On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of our 6.25% fixed-rate notes due 2025 (the “2025 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.3 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $5.0 million aggregate principal amount of 2025 Notes within 30 days. Interest on the 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning November 30, 2018. The 2025 Notes mature on August 31, 2025 and commencing August 28, 2021, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 2025 Notes have been capitalized and are being amortized over the term of the 2025 Notes.
On December 14, 2018, the Company completed the third refinancing of the Saratoga CLO (the“2013-1 Reset CLO Notes”). This refinancing, among other things, extended the Saratoga CLO reinvestment period to January 2021, and extended its legal maturity to January 2030. Anon-call period of January 2020 was also added. In addition to and as part of the refinancing, the Saratoga CLO has also been upsized from $300 million in assets to approximately $500 million. As part of this refinancing and upsizing, the Company invested an additional $13.8 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $2.5 million in aggregate principal amount of theClass F-R-2 Notes tranche and $7.5 million in aggregate principal amount of theClass G-R-2 Notes tranche at par. Concurrently, the existing $4.5 million of Class F notes were repaid.
On February 5, 2019, the Company completed are-opening andup-sizing of its existing 2025 Notes by issuing an additional $20.0 million in aggregate principal amount for net proceeds of $19.2 million after deducting underwriting commissions of approximately $0.6 million and discount of $0.2 million. Offering costs incurred were approximately $0.2 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $2.5 million aggregate principal amount of 2025 Notes within 30 days. Interest rate, interest payment dates and maturity remain unchanged from the existing 2025 Notes issued in August 2018. The net proceeds from this offering were used for general corporate purposes in accordance with our investment objective and strategies. The financing costs and discount of $1.0 million related to the 2025 Notes have been capitalized and are being amortized over the term of the 2025 Notes.
At ~~May~~August 31, 2019, the total 2025 Notes outstanding was $60.0 million. The 2025 Notes are listed on the NYSE under the trading symbol “SAF” with a par value of $25.00 per share.
On August 14, 2019, our wholly-owned subsidiary, Saratoga Investment Corp. SBIC II LP (“SBIC II LP”), also received an SBIC license from the SBA. The new license will provide up to $175.0 million in additional long-term capital in the form of SBA debentures.
Critical Accounting Policies
Basis of Presentation
The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make certain estimates and assumptions affecting amounts reported in the Company’s consolidated financial statements. We have identified investment valuation, revenue recognition and the recognition of capital gains incentive fee expense as our most critical accounting estimates. We continuously evaluate our estimates, including those related to the matters described below. These estimates are based on the information that is currently available to us and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions or conditions. A discussion of our critical accounting policies follows.
Investment Valuation
The Company accounts for its investments at fair value in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820,Fair Value Measurement and Disclosures(“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires the Company to assume that its investments are to be sold or its liabilities are to be transferred at the balance sheet date in the principal market to independent market participants, or in the absence of a principal market, in the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact.
Investments for which market quotations are readily available are fair valued at such market quotations obtained from independentthird-party pricing services and market makers subject to any decision by our board of directors to approve a fair value determination to reflect significant events affecting the value of these investments. We value investments for which market quotations are not readily available at fair value as approved, in good faith, by our board of directors based on input from Saratoga Investment Advisors, the audit committee of our board of directors and a third party independent valuation firm. Determinations of fair value may involve subjective judgments and estimates. The types of factors that may be considered in determining the fair value of our investments include the nature and realizable value of any collateral, the portfolio company’s ability to make payments, market yield trend analysis, the markets in which the portfolio company does business, comparison to publicly traded companies, discounted cash flow and other relevant factors.
We undertake a multi-step valuation process each quarter when valuing investments for which market quotations are not readily available, as described below:

Each investment is initially valued by the responsible investment professionals of Saratoga Investment Advisors and preliminary valuation conclusions are documented and discussed with our senior management; and

An independent valuation firm engaged by our board of directors independently reviews a selection of these preliminary valuations each quarter so that the valuation of each investment for which market quotes are not readily available is reviewed by the independent valuation firm at least once each fiscal year. We use a ~~party~~third-party independent valuation firm to value our investment in the subordinated notes of Saratoga CLO and theClass F-R-2 Notes andClass G-R-2 Notes tranches of the Saratoga CLOs every quarter.
In addition, all our investments are subject to the following valuation process:

The audit committee of our board of directors reviews and approves each preliminary valuation and Saratoga Investment Advisors and an independent valuation firm (if applicable) will supplement the preliminary valuation to reflect any comments provided by the audit committee; and
Our board of directors discusses the valuations and approves the fair value of each investment, in good faith, based on the input of Saratoga Investment Advisors, independent valuation firm (to the extent applicable) and the audit committee of our board of directors.
Our investment in Saratoga CLO is carried at fair value, which is based on a discounted cash flow model that utilizes prepayment,~~re-~~re-investment ~~investment~~ and loss assumptions based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and comparable yields for equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by SIA and recommended to our board of directors. Specifically, we use Intex cash flow models, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The models use a set of assumptions including projected default rates, recovery rates, reinvestment rate and prepayment rates in order to arrive at estimated valuations. The assumptions are based on available market data and projections provided by third parties as well as management estimates. We use the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine a valuation for our investment in Saratoga CLO.
Revenue Recognition
Income Recognition
Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis to the extent that such amounts are expected to be collected. The Company stops accruing interest on its investments when it is determined that interest is no longer collectible. Discounts and premiums on investments purchased are accreted/amortized over the life of the respective investment using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of discounts and amortization of premiums on investments.
Loans are generally placed onnon-accrual status when there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reserved when a loan is placed onnon-accrual status. Interest payments received onnon-accrual loans may be recognized as a reduction in principal depending upon management’s judgment regarding collectability.Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection.
Payment-in-Kind Interest
The Company holds debt and preferred equity investments in its portfolio that contain apayment-in-kind (“PIK”) interest provision.
The PIK interest, which represents contractually deferred interest added to the investment balance that is generally due at maturity, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. We stop accruing PIK interest if we do not expect the issuer to be able to pay all principal and interest when due.
Revenues
We generate revenue in the form of interest income and capital gains on the debt investments that we hold and capital gains, if any, on equity interests that we may acquire. We expect our debt investments, whether in the form of leveraged loans or mezzanine debt, to have terms of up to ten years, and to bear interest at either a fixed or floating rate. Interest on debt will be payable generally either quarterly or semi-annually. In some cases, our debt or preferred equity investments may provide for a portion or all of the interest to be PIK. To the extent interest is PIK, it will be payable through the increase of the principal amount of the obligation by the amount of
interest due on the then-outstanding aggregate principal amount of such obligation. The principal amount of the debt and any accrued but unpaid interest will generally become due at the maturity date. In addition, we may generate revenue in the form of commitment, origination, structuring or diligence fees, fees for providing managerial assistance or investment management services and possibly consulting fees. Any such fees will be generated in connection with our investments and recognized as earned. We may also invest in preferred equity or common equity securities that pay dividends on a current basis.
On January 22, 2008, we entered into a collateral management agreement with Saratoga CLO, pursuant to which we act as its collateral manager. The Saratoga CLO was initially refinanced in October 2013 with its reinvestment period extended to October 2016. On November 15, 2016, we completed a second refinancing of the Saratoga CLO with its reinvestment period extended to October 2018.
On December 14, 2018, we completed a third refinancing and upsize of the Saratoga CLO. The third Saratoga CLO refinancing, among other things, extended its reinvestment period to January 2021, and extended its legal maturity date to January 2030. Anon-call period of January 2020 was also added. Following this refinancing, the Saratoga CLO portfolio increased from approximately $300.0 million in aggregate principal amount to approximately $500.0 million of predominantly senior secured first lien term loans. In addition to refinancing its liabilities, we invested an additional $13.8 million in all of the newly issued subordinated notes of the Saratoga CLO and also purchased $2.5 million in aggregate principal amount of theClass F-R-2 and $7.5 million in aggregate principal amount of theClass G-R-2 notes tranches at par, with a coupon of LIBOR plus 8.75% and LIBOR plus 10.00%, respectively. As part of this refinancing, we also redeemed our existing $4.5 million aggregate amount of the Class F notes tranche at par.
The Saratoga CLO remains effectively 100% owned and managed by Saratoga Investment Corp. We receive a base management fee of 0.10% per annum and a subordinated management fee of 0.40% per annum of the outstanding principal amount of Saratoga CLO’s assets, paid quarterly to the extent of available proceeds. Prior to the second refinancing and the issuance of the2013-1 Amended CLO Notes, we received a base management fee of 0.25% per annum and a subordinated management fee of 0.25% per annum of the outstanding principal amount of Saratoga CLO’s assets, paid quarterly to the extent of available proceeds.
Following the third refinancing and the issuance of the2013-1 Reset CLO Notes on December 14, 2018, we are no longer entitled to an incentive management fee equal to 20.0% of excess cash flow to the extent the Saratoga CLO subordinated notes receive an internal rate of return paid in cash equal to or greater than 12.0%.
Interest income on our investment in Saratoga CLO is recorded using the effective interest method in accordance with the provisions of ASC Topic325-40,Investments-Other, Beneficial Interests in Securitized Financial Assets(“ASC325-40”), based on the anticipated yield and the estimated cash flows over the projected life of the investment. Yields are revised when there are changes in actual or estimated cash flows due to changes in prepayments and/orre-investments, credit losses or asset pricing. Changes in estimated yield are recognized as an adjustment to the estimated yield over the remaining life of the investment from the date the estimated yield was changed.
ASC 606
In May 2014, the FASB issued ASU2014-09,Revenue from Contracts with Customers(“ASC 606”), which supersedes the revenue recognition requirements in Revenue Recognition (ASC 605). Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In May 2016, ASU2016-12 amended ASU2014-09 and deferred the effective period for annual periods beginning after December 15, 2017. Management has concluded that the majority of its revenues associated with financial instruments are scoped out of ASC 606, and has concluded that the only significant impact relates to the timing of the recognition of the CLO incentive fee income. We adopted ASC 606 under the modified
retrospective approach using the practical expedient provided for, therefore the presentation of prior periods has not been adjusted.
Expenses
Our primary operating expenses include the payment of investment advisory and management fees, professional fees, directors and officers insurance, fees paid to independent directors and administrator expenses, including our allocable portion of our administrator’s overhead. Our investment advisory and management fees compensate our Investment Adviser for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all other costs and expenses of our operations and transactions, including those relating to:

organization;

calculating our net asset value (including the cost and expenses of any independent valuation firm);

expenses incurred by our Investment Adviser payable to third parties, including agents, consultants or other advisers, in monitoring our financial and legal affairs and in monitoring our investments and performing due diligence on our prospective portfolio companies;

expenses incurred by our Investment Adviser payable for travel and due diligence on our prospective portfolio companies;

interest payable on debt, if any, incurred to finance our investments;

offerings of our common stock and other securities;

investment advisory and management fees;

fees payable to third parties, including agents, consultants or other advisers, relating to, or associated with, evaluating and making investments;

transfer agent and custodial fees;

federal and state registration fees;

all costs of registration and listing our common stock on any securities exchange;

federal, state and local taxes;

independent directors’ fees and expenses;

costs of preparing and filing reports or other documents required by governmental bodies (including the U.S. Securities and Exchange Commission (“SEC”) and the SBA);

costs of any reports, proxy statements or other notices to common stockholders including printing costs;
our fidelity bond, directors and officers errors and omissions liability insurance, and any other insurance premiums;

direct costs and expenses of administration, including printing, mailing, long distance telephone, copying, secretarial and other staff, independent auditors and outside legal costs; and

administration fees and all other expenses incurred by us or, if applicable, the administrator in connection with administering our business (including payments under the Administration Agreement based upon our allocable portion of the administrator’s overhead in performing its obligations under an Administration Agreement, including rent and the allocable portion of the cost of our officers and their respective staffs (including travel expenses)).
Pursuant to the investment advisory and management agreement that we had with GSCP (NJ), L.P., our former investment adviser and administrator, we had agreed to pay GSCP (NJ), L.P. as investment adviser a
quarterly base management fee of 1.75% of the average value of our total assets (other than cash or cash equivalents but including assets purchased with borrowed funds) at the end of the two most recently completed fiscal quarters and an incentive fee.
The incentive fee had two parts:

A fee, payable quarterly in arrears, equal to 20.0% of ourpre-incentive fee net investment income, expressed as a rate of return on the value of the net assets at the end of the immediately preceding quarter, that exceeded a 1.875% quarterly hurdle rate measured as of the end of each fiscal quarter. Under this provision, in any fiscal quarter, our investment adviser received no incentive fee unless ourpre-incentive fee net investment income exceeded the hurdle rate of 1.875%. Amounts received as a return of capital were not included in calculating this portion of the incentive fee. Since the hurdle rate was based on net assets, a return of less than the hurdle rate on total assets could still have resulted in an incentive fee.

A fee, payable at the end of each fiscal year, equal to 20.0% of our net realized capital gains, if any, computed net of all realized capital losses and unrealized capital depreciation, in each case on a cumulative basis on each investment in the Company’s portfolio, less the aggregate amount of capital gains incentive fees paid to the investment adviser through such date.
We deferred cash payment of any incentive fee otherwise earned by our former investment adviser if, during the then most recent four full fiscal quarters ending on or prior to the date such payment was to be made, the sum of (a) our aggregate distributions to our stockholders and (b) our change in net assets (defined as total assets less liabilities) (before taking into account any incentive fees payable during that period) was less than 7.5% of our net assets at the beginning of such period. These calculations were appropriatelypro-rated for the first three fiscal quarters of operation and adjusted for any share issuances or repurchases during the applicable period. Such incentive fee would become payable on the next date on which such test had been satisfied for the most recent four full fiscal quarters or upon certain terminations of the investment advisory and management agreement. We commenced deferring cash payment of incentive fees during the quarterly period ended August 31, 2007 and continued to defer such payments through the quarterly period ended May 31, 2010. As of July 30, 2010, the date on which GSCP (NJ), L.P. ceased to be our investment adviser and administrator, we owed GSCP (NJ), L.P. $2.9 million in fees for services previously provided to us; of which $0.3 million has been paid by us. GSCP (NJ), L.P. agreed to waive payment by us of the remaining $2.6 million in connection with the consummation of the stock purchase transaction with Saratoga Investment Advisors and certain of its affiliates described elsewhere in this Quarterly Report.
The terms of the investment advisory and management agreement with Saratoga Investment Advisors, our current investment adviser, are substantially similar to the terms of the investment advisory and management agreement we had entered into with GSCP (NJ), L.P., our former investment adviser, except for the following material distinctions in the fee terms:

The capital gains portion of the incentive fee was reset with respect to gains and losses from May 31, 2010, and therefore losses and gains incurred prior to such time will not be taken into account when calculating the capital gains fee payable to Saratoga Investment Advisors and, as a result, Saratoga Investment Advisors will be entitled to 20.0% of net gains that arise after May 31, 2010. In addition, the cost basis for computing realized gains and losses on investments held by us as of May 31, 2010 equal the fair value of such investment as of such date. Under the investment advisory and management agreement with our former investment adviser, GSCP (NJ), L.P., the capital gains fee was calculated from March 21, 2007, and the gains were substantially outweighed by losses.

Under the “catch up” provision, 100.0% of ourpre-incentive fee net investment income with respect to that portion of suchpre-incentive fee net investment income that exceeds 1.875% but is less than or equal to 2.344% in any fiscal quarter is payable to Saratoga Investment Advisors. This will enable Saratoga Investment Advisors to receive 20.0% of all net investment income as such amount approaches 2.344% in any quarter, and Saratoga Investment Advisors will receive 20.0% of any additional net investment income. Under the investment advisory and management agreement with our former investment adviser, GSCP (NJ), L.P. only received 20.0% of the excess net investment income over 1.875%.
approaches 2.344% in any quarter, and Saratoga Investment Advisors will receive 20.0% of any additional net investment income. Under the investment advisory and management agreement with our former investment adviser, GSCP (NJ), L.P. only received 20.0% of the excess net investment income over 1.875%.

We will no longer have deferral rights regarding incentive fees in the event that the distributions to stockholders and change in net assets is less than 7.5% for the preceding four fiscal quarters.
Capital Gains Incentive Fee
The Company records an expense accrual relating to the capital gains incentive fee payable by the Company to its Manager when the unrealized gains on its investments exceed all realized capital losses on its investments given the fact that a capital gains incentive fee would be owed to the Manager if the Company were to liquidate its investment portfolio at such time. The actual incentive fee payable to the Company’s Manager related to capital gains will be determined and payable in arrears at the end of each fiscal year and will include only realized capital gains for the period.
Regulatory Matters
In August 2018, the SEC issued Final Rule ReleaseNo.33-10532,Disclosure Update and Simplification, which in part amends certain disclosure requirements of RegulationS-X that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other Commission disclosure requirements, U.S. GAAP or changes in the information environment. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. The effective date for these disclosures was November 5, 2018, effective for the first quarter that begins after the effective date. Management has adopted these amendments as currently required and these are reflected in the Company’s consolidated financial statements and related disclosures. The presentation of certain prior year information has been adjusted to conform with these amendments.
New Accounting Pronouncements
In August 2018, FASB issued ASU2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement(“ASU2018-13”). The primary focus of ASU2018-13 is to improve the effectiveness of the disclosure requirements for fair value measurements. The changes affect all companies that are required to include fair value measurement disclosures. In general, the amendments in ASU2018-13 are effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. An entity is permitted to early adopt the removed or modified disclosures upon the issuance of ASU2018-13 and may delay adoption of the additional disclosures, which are required for public companies only, until their effective date. Management has assessed these changes and does not believe they would have a material impact on the Company’s consolidated financial statements and disclosures.
~~In March 2017, the FASB issued ASU2017-08,~~~~Receivables — Nonrefundable Fees and Other Costs (Subtopic310-20),~~ ~~Premium Amortization on Purchased Callable Debt Securities~~~~(“ASU2017-08”)~~ ~~which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU2017-08~~ ~~does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU2017-08~~ is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management has assessed these changes and concluded these changes do not have a material impact on the Company’s consolidated financial statements and disclosures.
Portfolio and Investment Activity
Investment Portfolio Overview


   May 31, 2019 February 28, 2019    August 31, 2019 February 28, 2019
($ in millions)    ($ in millions)
Number of investments(1)
   66 58    66 58
Number of portfolio companies(2)
   33 31    36 31
Average investment per portfolio company(2)
   $ 11.3 $ 11.8    $ 12.5 $ 11.8
Average investment size(1)
   $ 5.8 $ 6.5    $ 7.0 $ 6.5
Weighted average maturity(3)
   3.5yrs 3.6yrs    3.5 3.6yrs
Number of industries
   8 8    8 8
Non-performing or delinquent investments (fair value)
   $ 4.8 $ 5.7    $ 3.9 $ 5.7
Fixed rate debt (% of interest earning portfolio)(3)
   $ 56.8(16.7%) $ 55.7(16.3%)    $ 56.7(13.6 %) $ 55.7(16.3 %)
Fixed rate debt (weighted average current coupon)(3)
   10.4 % 10.4 %    10.4 % 10.4 %
Floating rate debt (% of interest earning portfolio)(3)
   $ 284.0(83.3%) $ 285.0(83.7%)    $ 359.6(86.4 %) $ 285.0(83.7 %)
Floating rate debt (weighted average current spread over LIBOR)(3)(4)
   8.5 % 8.6 %    8.3 % 8.6 %

(1)
Excludes our investment in the subordinated notes of Saratoga CLO.
(2)
Excludes our investment in the subordinated notes of Saratoga CLO,Class F-R-2 Notes andClass G-R-2 Notes tranches of Saratoga CLO.
(3)
Excludes our investment in the subordinated notes of Saratoga CLO and equity interests.
(4)
Calculation uses either1-month or3-month LIBOR, depending on the contractual terms, and after factoring in any existing LIBOR floors.
During the three months ended ~~May~~August 31, 2019, we invested ~~$27.4~~$92.5 million in new or existing portfolio companies and had ~~$26.9~~$19.0 million in aggregate amount of exits and repayments resulting in net investments of ~~$0.5~~$73.5 million for the period.
During the three months ended ~~May~~August 31, 2018, we invested ~~$35.2~~$51.7 million in new or existing portfolio companies and had ~~$36.5~~$1.1 million in aggregate amount of exits and repayments resulting in net investments of $50.6 million for the period.
During the six months ended August 31, 2019, we invested $119.9 million in new or existing portfolio companies and had $45.9 million in aggregate amount of exits and repayments resulting in net investments of ~~$1.3~~$74.0 million for the period. During the six months ended August 31, 2018, we invested $86.9 million in new or existing portfolio companies and had $37.5 million in aggregate amount of exits and repayments resulting in net investments of $49.4 million for the period.
Portfolio Composition
Our portfolio composition at ~~May~~August 31, 2019 and February 28, 2019 at fair value was as follows:

   May 31, 2019 February 28, 2019    August 31, 2019 February 28, 2019
   Percentage
of Total
Portfolio Weighted
Average
Current
Yield Percentage
of Total
Portfolio Weighted
Average
Current
Yield    Percentage
of Total
Portfolio Weighted
Average
Current
Yield Percentage
of Total
Portfolio Weighted
Average
Current
Yield
First lien term loans
   53.6 % 10.7 % 50.5 % 10.9 %    62.5 % 10.3 % 50.5 % 10.9 %
Second lien term loans
   26.7 11.8 31.3 11.7    20.5 11.6 31.3 11.7
Unsecured term loans
   0.5 0.0 0.5 0.0    0.4 0.0 0.5 0.0
Structured finance securities
   9.3 16.0 8.8 14.6    7.4 14.7 8.8 14.6
Equity interests
   9.9 2.8 8.9 3.1    9.2 2.6 8.9 3.1




Total
   100.0 % 10.6 % 100.0 % 10.7 %    100.0 % 10.1 % 100.0 % 10.7 %




At ~~May~~August 31, 2019, our investment in the subordinated notes of Saratoga CLO, a collateralized loan obligation fund, had a fair value of ~~$28.0~~$26.0 million and constituted ~~6.8%~~5.3% of our portfolio.
This investment constitutes a first loss position in a portfolio that, as of ~~May~~August 31, 2019 and February 28, 2019, was composed of ~~$513.4~~$505.8 million and $510.3 million, respectively, in aggregate principal amount of primarily senior secured first lien term loans. In addition, as of ~~May~~August 31, 2019, we also own $2.5 million in aggregate principal of theF-R-2 Notes and $7.5 million in aggregate principal of theG-R-2 Notes in the Saratoga CLO, that only rank senior to the subordinated notes.
This investment is subject to unique risks. (See “Part 1. Item 1A. Risk Factors—Our investment in Saratoga CLO constitutes a leveraged investment in a portfolio of predominantly senior secured first lien term loans and is subject to additional risks and volatility” in our Annual Report on Form10-K for the fiscal year ended February 28, 2019).
We do not consolidate the Saratoga CLO portfolio in our consolidated financial statements. Accordingly, the metrics below do not include the underlying Saratoga CLO portfolio investments. However, at ~~May~~August 31, 2019, ~~$491.0~~$478.9 million or ~~98.6%~~98.2% of the Saratoga CLO portfolio investments in terms of market value had a CMR (as defined below) color rating of green or yellow and three Saratoga CLO portfolio investments were in default with a fair value of ~~$1.3~~$1.4 million. At February 28, 2019, $491.0 million or 98.5% of the Saratoga CLO portfolio investments in terms of market value had a CMR (as defined below) color rating of green or yellow and two Saratoga CLO portfolio investments were in default with a fair value of $0.01 million. For more information relating to the Saratoga CLO, see the audited financial statements for Saratoga in our Annual Report on Form10-K for the fiscal year ended February 28, 2019.
Saratoga Investment Advisors normally grades all of our investments using a credit and monitoring rating system (“CMR”). The CMR consists of a single component: a color rating. The color rating is based on several criteria, including financial and operating strength, probability of default, and restructuring risk. The color ratings are characterized as follows: (Green)—performing credit; (Yellow)—underperforming credit; (Red)—in principal payment default and/or expected loss of principal.
Portfolio CMR distribution
The CMR distribution for our investments at ~~May~~August 31, 2019 and February 28, 2019 was as follows:
Saratoga Investment Corp.

   May 31, 2019 February 28, 2019    August 31, 2019 February 28, 2019
Color Score
   Investments
at
Fair Value    Percentage
of Total
Portfolio Investments
at
Fair Value    Percentage
of Total
Portfolio    Investments
at
Fair Value    Percentage
of Total
Portfolio Investments
at
Fair Value    Percentage
of Total
Portfolio
   ($ in thousands)    ($ in thousands)
Green
   $ 336,314    82.1 % $ 336,061    83.6 %    $ 412,314    84.7 % $ 336,061    83.6 %
Yellow
   2,058    0.5 4,600    1.1    2,074    0.4 4,600    1.1
Red
   2,411    0.6 6    0.0    1,869    0.4 6    0.0
N/A(1)
   68,668    16.8 61,353    15.3    70,623    14.5 61,353    15.3












Total
   $ 409,451    100.0 % $ 402,020    100.0 %    $ 486,880    100.0 % $ 402,020    100.0 %












(1)
Comprised of our investment in the subordinated notes of Saratoga CLO and equity interests.
The change in reserve from $0.6 million as of February 28, 2019 to ~~$0.9~~$1.1 million as of ~~May~~August 31, 2019 was primarily related to the additional quarterly interest accruals reserved on Roscoe Medical, Inc., My Alarm Center, LLC and TMAC Acquisition Co., LLC.
The CMR distribution of Saratoga CLO investments at ~~May~~August 31, 2019 and February 28, 2019 was as follows:
Saratoga CLO

   May 31, 2019 February 28, 2019    August 31, 2019 February 28, 2019
Color Score
   Investments
at
Fair Value    Percentage
of Total
Portfolio Investments
at
Fair Value    Percentage
of Total
Portfolio    Investments
at
Fair Value    Percentage
of Total
Portfolio Investments
at
Fair Value    Percentage
of Total
Portfolio
   ($ in thousands)    ($ in thousands)
Green
   $ 458,082    92.0 % $ 462,171    92.7 %    $ 450,270    92.3 % $ 462,171    92.7 %
Yellow
   32,902    6.6 28,839    5.8    28,628    5.9 28,839    5.8
Red
   6,751    1.4 7,379    1.5    9,014    1.8 7,379    1.5
N/A(1)
   0    0.0 16    0.0    0    0.0 16    0.0












Total
   $ 497,735    100.0 % $ 498,405    100.0 %    $ 487,912    100.0 % $ 498,405    100.0 %












(1)
Comprised of Saratoga CLO’s equity interests.
Portfolio composition by industry grouping at fair value
The following table shows our portfolio composition by industry grouping at fair value at ~~May~~August 31, 2019 and February 28, 2019:
Saratoga Investment Corp.

   May 31, 2019 February 28, 2019    August 31, 2019 February 28, 2019
   Investments
At
Fair Value    Percentage
of Total
Portfolio Investments
At
Fair Value    Percentage
of Total
Portfolio    Investments
At
Fair Value    Percentage
of Total
Portfolio Investments
At
Fair Value    Percentage
of Total
Portfolio
   ($ in thousands)    ($ in thousands)
Business Services
   $ 249,061    60.8 % $ 252,676    62.8 %    $ 258,597    53.1 % $ 252,676    62.8 %
Healthcare Services
   66,518    16.3 57,342    14.3    112,122    23.0 57,342    14.3
Education
   48,070    11.7 48,076    12.0    72,626    14.9 48,076    12.0
Structured Finance Securities(1)
   37,965    9.3 35,328    8.8    35,894    7.4 35,328    8.8
Metals
   2,906    0.7 2,827    0.7    3,126    0.7 2,827    0.7
Food and Beverage
   2,074    0.4 2,100    0.5
Consumer Services
   2,372    0.6 3,166    0.8    2,000    0.4 3,166    0.8
Food and Beverage
   2,058    0.5 2,100    0.5
Consumer Products
   501    0.1 505    0.1    441    0.1 505    0.1












Total
   $ 409,451    100.0 % $ 402,020    100.0 %    $ 486,880    100.0 % $ 402,020    100.0 %












(1)
Comprised of our investment in the subordinated notes,Class F-R-2 Notes andClass G-R-2 Notes of Saratoga CLO.
The following table shows Saratoga CLO’s portfolio composition by industry grouping at fair value at ~~May~~August 31, 2019 and February 28, 2019:
Saratoga CLO

   August 31, 2019 February 28, 2019
   Investments
at
Fair Value    Percentage
of Total
Portfolio Investments
at
Fair Value    Percentage
of Total
Portfolio
   May 31, 2019 February 28, 2019
   Investments
at
Fair Value    Percentage
of Total
Portfolio Investments
at
Fair Value    Percentage
of Total
Portfolio
   ($ in thousands)    ($ in thousands)
Banking Finance Insurance & Real Estate
   $ 75,212    15.1 % $ 74,638    15.0 %    $ 70,635    14.5 % $ 74,638    15.0 %
Healthcare & Pharmaceuticals
   43,983    8.8 39,242    7.9    39,767    8.2 39,242    7.9
Services: Business
   35,698    7.2 36,575    7.3    38,090    7.8 36,575    7.3
High Tech Industries
   35,433    7.1 38,886    7.8    30,558    6.3 38,886    7.8
Telecommunications
   27,159    5.5 28,156    5.6    28,332    5.8 28,156    5.6
Services: Consumer
   27,759    5.7 24,712    5.0
Aerospace & Defense
   24,722    5.1 16,836    3.4
Media: Advertising Printing & Publishing
   25,975    5.2 31,799    6.4    21,038    4.3 31,799    6.4
Services: Consumer
   23,882    4.8 24,712    5.0
Retail
   21,470    4.3 23,018    4.6
Aerospace & Defense
   21,302    4.3 16,836    3.4
Beverage Food & Tobacco
   21,129    4.2 23,436    4.7    20,622    4.2 23,436    4.7
Chemicals Plastics & Rubber
   18,869    3.8 15,841    3.2    19,385    4.0 15,841    3.2
Retail
   18,271    3.7 23,018    4.6
Hotel Gaming & Leisure
   18,106    3.6 15,373    3.1    18,148    3.7 15,373    3.1
Consumer goods:Non-durable
   15,435    3.1 15,528    3.1    16,742    3.4 15,528    3.1
Automotive
   14,686    3.0 13,373    2.7    14,106    2.9 13,373    2.7
Media: Diversified & Production
   13,088    2.6 13,086    2.6    12,992    2.7 13,086    2.6
Containers Packaging & Glass
   13,005    2.6 10,033    2.0    12,936    2.7 10,033    2.0
Consumer goods: Durable
   10,752    2.2 6,324    1.3
Construction & Building
   11,272    2.3 13,293    2.7    10,215    2.1 13,293    2.7
Transportation: Cargo
   10,779    2.2 11,137    2.2
Capital Equipment
   9,698    2.0 9,638    1.9    9,509    1.9 9,638    1.9
Media: Broadcasting & Subscription
   8,990    1.8 10,410    2.1    9,385    1.9 10,410    2.1
Consumer goods: Durable
   6,145    1.2 6,324    1.3
Transportation: Cargo
   7,966    1.6 11,137    2.2
Utilities: Oil & Gas
   4,446    0.9 2,953    0.6
Energy: Oil & Gas
   4,121    0.8 763    0.1
Energy: Electricity
   3,495    0.7 5,059    1.0
Forest Products & Paper
   3,467    0.7 4,555    0.9
Metals & Mining
   5,010    1.0 5,048    1.0    3,256    0.7 5,048    1.0
Utilities: Electric
   2,873    0.6 2,941    0.6
Transportation: Consumer
   4,766    1.0 4,773    1.0    1,931    0.4 4,773    1.0
Forest Products & Paper
   4,548    0.9 4,555    0.9
Utilities: Oil & Gas
   4,440    0.9 2,953    0.6
Energy: Electricity
   3,034    0.6 5,059    1.0
Utilities: Electric
   2,939    0.6 2,941    0.6
Wholesale
   1,891    0.4 —      0.0
Environmental Industries
   985    0.2 979    0.2    502    0.1 979    0.2
Energy: Oil & Gas
   697    0.1 763    0.1












Total
   $ 497,735    $ 100.0 % $ 498,405    100.0 %    $ 487,912    100.0 % $ 498,405    100.0 %












Portfolio composition by geographic location at fair value
The following table shows our portfolio composition by geographic location at fair value at ~~May~~August 31, 2019 and February 28, 2019. The geographic composition is determined by the location of the corporate headquarters of the portfolio company.

   May 31, 2019 February 28, 2019    August 31, 2019 February 28, 2019
   Investments
at
Fair Value    Percentage
of Total
Portfolio Investments
at
Fair Value    Percentage
of Total
Portfolio    Investments
at
Fair Value    Percentage
of Total
Portfolio Investments
at
Fair Value    Percentage
of Total
Portfolio
   ($ in thousands)    ($ in thousands)
Southeast
   $ 142,489    34.8 % $ 130,604    32.5 %    $ 195,446    40.1 % $ 130,604    32.5 %
Midwest
   108,534    26.5 116,388    29.0    106,476    21.9 116,388    29.0
Southwest
   51,358    12.5 50,236    12.5    61,174    12.6 50,236    12.5
West
   29,475    6.0 10,777    2.7
Northeast
   18,306    4.5 19,061    4.7    17,975    3.7 19,061    4.7
West
   11,043    2.7 10,777    2.7
Northwest
   8,770    2.1 8,636    2.1    9,325    1.9 8,636    2.1
Other(1)
   68,951    16.9 66,318    16.5    67,009    13.8 66,318    16.5












Total
   $ 409,451    100.0 % $ 402,020    100.0 %    $ 486,880    100.0 % $ 402,020    100.0 %












(1)
Comprised of our investment in the subordinated notes,Class F-R-2 Notes andClass G-R-2 Notes of Saratoga CLO.
Results of operations
Operating results for the three and six months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018 was as follows:

   For the three months ended
   May 31, 2019 May 31, 2018    For the three months ended    For the six months ended
   ($ in thousands)    August 31,
2019    August 31,
2018    August 31,
2019    August 31,
2018
Total investment income
   $ 12,751 $ 10,488    $ 13,888    $ 11,403    $ 26,639    $ 21,891
Total operating expenses
   9,070 6,561    8,932    6,258    18,002    12,819










Net investment income
   3,681 3,927    4,956    5,145    8,637    9,072
Net realized gains (losses) from investments
   —   212
Net realized gain from investments
   1,870    0    1,870    212
Net change in unrealized appreciation (depreciation) on investments
   3,989 643    1,458    (2,154 )    5,447    (1,511 )
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments
   (21 ) (940 )    (704 )    152    (725 )    (788 )










Net increase in net assets resulting from operations
   $ 7,649 $ 3,842    $ 7,580    $ 3,143    $ 15,229    $ 6,985










Investment income
The composition of our investment income for three and six months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018 was as follows:

   For the three months ended
   May 31, 2019    May 31, 2018
   ($ in thousands)
Interest from investments
   $ 11,603    $ 9,607
Management fee income
   630    385
Incentive fee income
   —      199
Interest from cash and cash equivalents and other income
   518    297




Total investment income
   $ 12,751    $ 10,488




   For the three months ended    For the six months ended
   August 31,
2019    August 31,
2018    August 31,
2019    August 31,
2018
   ($ in thousands)
Interest from investments
   $ 11,742    $ 10,315    $ 23,345    $ 19,922
Management fee income
   629    364    1,259    749
Incentive fee income
   —      147    —      346
Interest from cash and cash equivalents and other income
   1,517    577    2,035    874








Total investment income
   $ 13,888    $ 11,403    $ 26,639    $ 21,891








For the three months ended ~~May~~August 31, 2019, total investment income increased ~~$2.3~~$2.5 million, or ~~21.6%~~21.8% to ~~$12.8~~$13.9 million from ~~$10.5~~$11.4 million for the three months ended ~~May~~August 31, 2018. Interest income from investments increased ~~$2.0~~$1.4 million, or ~~20.8%~~13.8%, to ~~$11.6~~$11.7 million for the three months ended ~~May~~August 31, 2019 from ~~$9.6~~$10.3 million for the three months ended ~~May~~August 31, 2018. This reflects anthe partial period impact of the increase of ~~$66.1~~$94.0 million, or ~~19.3%~~23.9% in total investments at ~~May~~August 31, 2019 from ~~$343.4~~$392.9 million at ~~May~~August 31, 2018. At ~~May~~August 31, 2019, the weighted average current yield on investments was ~~10.6%~~10.1% compared to ~~11.3%~~10.8% at ~~May~~August 31, 2018, which offset some of the increase.
For the six months ended August 31, 2019, total investment income increased $4.7 million, or 21.7% to $26.6 million from $21.9 million for the six months ended August 31, 2018. Interest income from investments increased $3.4 million, or 17.2%, to $23.3 million for the six months ended August 31, 2019 from $19.9 million for the six months ended August 31, 2018. This reflects the partial period impact of the increase of $94.0 million, or 23.9% in total investments at August 31, 2019 from $392.9 million at August 31, 2018.
For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, total PIK income was $1.2 million and $0.8 million, respectively. For the six months ended August 31, 2019 and August 31, 2018, total PIK income was $2.4 million and $1.6 million, respectively. This increase was primarily due to the increase in investment in Easy Ice, LLC, which primarily generates PIK income.
Management fee income reflects the fee income received for managing the Saratoga CLO. For the three months ended ~~May~~August 31, 2019, total management fee income increased $0.2 million, or ~~63.4%~~73.0% to $0.6 million from $0.4 million for the three months ended ~~May~~August 31, 2018. For the six months ended August 31, 2019, total management fee income increased $0.6 million, or 68.1% to $1.3 million from $0.7 million for the six months ended August 31, 2018. This reflects the increase in Saratoga CLO assets being managed by the Company following the third refinancing of the Saratoga CLO.
Following the third refinancing of the Saratoga CLO on December 14, 2018, the Company is no longer entitled to receive the incentive fee. For the three and six months ended ~~May~~August 31, 2018, incentive fee income of ~~$0.2~~$0.1 million and $0.3 million, respectively, was recognized related to the Saratoga CLO, reflecting the 12.0% hurdle rate that has been achieved.
Operating expenses
The composition of our operating expenses for the three and six months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018 was as follows:

   For the three months ended    For the three months ended    For the six months ended
   May 31, 2019    May 31, 2018    August 31, 2019    August 31, 2018    August 31, 2019    August 31, 2018
   ($ in thousands)    ($ in thousands)
Interest and debt financing expenses
   $ 3,864    $ 2,723    $ 3,867    $ 2,866    $ 7,731    $ 5,589
Base management fees
   1,812    1,532    1,997    1,646    3,809    3,178
Incentive management fees
   2,113    1,073    2,086    807    4,199    1,880
Professional fees
   395    543    385    468    780    1,011
Administrator expenses
   500    437    519    459    1,019    896
Insurance
   65    64    64    64    129    128
Directors fees and expenses
   60    96    98    75    158    171
General and administrative and other expenses
   259    360    382    215    641    575
Income tax benefit
   2    (267 )    (466 )    (342 )    (464 )    (609 )
Excise tax credit
   —      0    —      —      —      0












Total operating expenses
   $ 9,070    $ 6,561    $ 8,932    $ 6,258    $ 18,002    $ 12,819











��

For the three months ended ~~May~~August 31, 2019, total operating expenses increased ~~$2.5~~$2.7 million, or ~~38.3%~~42.7% compared to the three months ended ~~May~~August 31, 2018. For the six months ended August 31, 2019, total operating expenses increased $5.2 million, or 40.4% compared to the six months ended August 31, 2018.
For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, the increase in interest and debt financing expenses is primarily attributable to an increase in average outstanding debt from ~~$212.1~~$224.5 million for the three months ended ~~May~~August 31, 2018 to ~~$284.5~~$288.7 million for the three months ended ~~May~~August 31, 2019.
For the six months ended August 31, 2019 and August 31, 2018, the increase in interest and debt financing expenses is primarily attributable to an increase in average outstanding debt from $224.5 million for the six months ended August 31, 2018 to $284.6 million for the six months ended August 31, 2019.
For the three months ended ~~May~~August 31, 2019, the weighted average interest rate on our outstanding indebtedness was ~~4.80%~~4.73% compared to ~~4.44%~~4.39% for the three months ended ~~May~~August 31, 2018. The increase in weighted average interest rate was primarily driven by the issuance of the 2025 Notes which carry a fixed rate of 6.25%, versus the SBA debentures that carry a lower interest rate. For both ~~May~~August 31, 2019 and February 28, 2019, the SBA debentures represented 52.7% of overall debt.
For the six months ended August 31, 2019, the weighted average interest rate on our outstanding indebtedness was 4.80% compared to 4.40% for the six months ended August 31, 2018. The increase in weighted average interest rate was primarily driven by the issuance of the 2025 Notes which carry a fixed rate of 6.25%, versus the SBA debentures that carry a lower interest rate. For both August 31, 2019 and February 28, 2019, the SBA debentures represented 52.7% of overall debt.
For the three months ended ~~May~~August 31, 2019, base management fees increased ~~$0.3~~$0.4 million, or ~~18.3%~~21.4% compared to the three months ended ~~May~~August 31, 2018. The increase in base management fees results from the ~~18.6%~~21.7% increase in the average value of our total assets, less cash and cash equivalents, from ~~$347.4~~$373.1 million as of ~~May~~August 31, 2018 to ~~$412.0~~$454.2 million as of ~~May~~August 31, 2019. For the six months ended August 31, 2019, base management fees increased $0.6 million, or 19.9% compared to the six months ended August 31, 2018. The increase in base management fees results from the 20.2% increase in the average value of our total assets, less cash and cash equivalents, from $360.3 million for the six months ended August 31, 2018 to $433.1 million for the six months ended August 31, 2019.
For the three months ended ~~May~~August 31, 2019, incentive management fees increased ~~$1.0~~$1.3 million, or ~~97.0%~~158.2%, compared to the three months ended ~~May~~August 31, 2018. The first part of the incentive management fees increased from ~~$1.0 million for the three months ended May 31, 2018 to~~ $1.2 million for the three months ended ~~May~~August 31, 2018 to $1.4 million for the three months ended August 31, 2019, as higher average total assets led to increased net investment income above the hurdle rate pursuant to the investment advisory and management agreement. The incentive management fees related to capital gains increased from ~~$0.1~~$0.4 million benefit for the three months ended ~~May~~August 31, 2018 to ~~$1.0~~$0.7 million expense for the three months ended ~~May~~August 31, 2019, reflecting net realized gains on investments this period, including the impact of the deferred taxes on unrealized appreciation.
For the six months ended August 31, 2019, incentive management fees increased $2.3 million, or 123.3%, compared to the six months ended August 31, 2018. The first part of the incentive management fees increased from $2.2 million for the six months ended August 31, 2018 to $2.6 million for the six months ended August 31, 2019, as higher average total assets led to increased net investment
income above the hurdle rate pursuant to the investment advisory and management agreement. The incentive management fees related to capital gains increased from $0.3 million benefit for the six months ended August 31, 2018 to $1.6 million expense for the six months ended August 31, 2019, reflecting net realized gains on investments this period, including the impact of the deferred taxes on unrealized appreciation.
For the three and six months ended ~~May~~August 31, 2019, professional fees decreased ~~$0.1~~$0.08 million, or ~~27.2%~~17.8%, and decreased $0.2 million, or 22.9%, respectively, compared to the three and six months ended ~~May~~August 31, 2018. This decrease primarily relates to decreased legal and accounting fees this year, ~~following~~primarily related to the ~~Sarbanes-Oxley implementation costs~~shelf registration statement last year.
For the three and six months ended ~~May~~August 31, 2019, administrator expenses increased $0.06 million, or ~~14.3%~~13.2%, and increased $0.1 million, or 13.7%, respectively, compared to the three and six months ended ~~May~~August 31, ~~2018, which reflects~~2018. These increases during the period are primarily attributable to an increase to the cap on the payment or ~~reimbursement~~reimbursements of expenses by the Company from ~~$1.75~~$2.0 million to ~~$2.0~~$2.225 million, effective August 1, ~~2018.~~2019.
As discussed above, the increase in interest and debt financing expenses for the three months ended ~~May~~August 31, 2019 compared to the three months ended ~~May~~August 31, 2018 is primarily attributable to an increase in the average dollar amount of outstanding debt. During the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, ~~there were no~~the average borrowings outstanding under the Credit ~~Facility.~~Facility was $0.3 million and $0.0 million, respectively. For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, the average borrowings outstanding of SBA debentures was $150.0 million and ~~$137.7~~$146.3 million, respectively. For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 3.25% and 3.18%, respectively. During the three months ended August 31, 2019 and August 31, 2018, the average dollar amount of our 6.25% fixed-rate 2025 Notes outstanding was $60.0 million and $1.8 million, respectively. During the three months ended August 31, 2019 and August 31, 2018, the average dollar amount of our 6.75% fixed-rate 2023 Notes outstanding was $74.5 million and $74.5 million, respectively.
As discussed above, the increase in interest and debt financing expenses for the six months ended August 31, 2019 compared to the six months ended August 31, 2018 is primarily attributable to an increase in the average dollar amount of outstanding debt. During the six months ended August 31, 2019 and August 31, 2018, the average borrowings outstanding under the Credit Facility was $0.2 million and $0.0 million, respectively. For the six months ended August 31, 2019 and August 31, 2018, the average borrowings outstanding of SBA debentures was $150.0 million and $142.0 million, respectively. For the six months ended August 31, 2019 and August 31, 2018, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 3.25% and 3.17%, respectively. During the ~~three~~six months ended ~~May~~August 31, 2019 and August 31, 2018, the average dollar amount of our 6.25% fixed-rate 2025 Notes outstanding was $60.0 ~~million. There were no outstanding borrowings of our fixed-rate 2025 Notes during~~million and $0.9 million, respectively. During the ~~three~~six months ended ~~May 31, 2018. During the three months ended May~~August 31, 2019 and ~~May~~August 31, 2018, the average dollar amount of our 6.75% fixed-rate 2023 Notes outstanding was $74.5 million and $74.5 million, respectively.
For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, there were income tax benefits of ~~$0.0~~$0.5 million and $0.3 million, respectively. For the six months ended August 31, 2019 and August 31, 2018, there were income tax benefits of $0.5 million and $0.6 million, respectively. This relates to net deferred federal and state income tax benefits with respect to operating losses and income derived from equity investments held in taxable blockers.
Net realized gains (losses) on sales of investments
For the three months ended ~~May~~August 31, 2019, the Company had ~~$26.9~~$19.0 million of sales, repayments, exits or restructurings resulting in $1.9 million of net realized gains. For the six months ended August 31, 2019, the Company had $45.9 million of sales, repayments, exits or restructurings resulting in $1.9 million of net realized gains. The most significant realized gains and losses during the six months ended August 31, 2019 were as follows (dollars in thousands):
Six Months ended August 31, 2019
Issuer

Asset Type
   Gross Proceeds    Cost    Net
Realized
Gain
Censis Technologies, Inc.
   Equity Interests    $ 1,559    $ 999    $ 560
Fancy Chap, Inc.
   First Lien Term Loan    6,000    5,940    60
Fancy Chap, Inc.
   Equity Interests    2,175    925    1,250
For the three months ended August 31, 2018, the Company had $1.1 million of sales, repayments, exits or restructurings. For the ~~three~~six months ended ~~May~~August 31, 2018, the Company had ~~$36.5~~$37.5 million of sales, repayments, exits or restructurings resulting in $0.2 million of net realized gains. ~~There were no realized gains and losses during the three months ended May 31, 2019.~~
The most significant realized gains ~~and losses~~(losses) during the ~~three~~six months ended ~~May~~August 31, 2018 ~~were~~was as follows (dollars in thousands):
~~Three Months ended May 31, 2018~~

Issuer

Asset Type
   Gross Proceeds    Cost    Net
Realized
Gain (Loss)
Take 5 Oil Change, L.L.C.
   Equity Interests    $ 319    $ —      $ 319
TM Restaurant Group L.L.C.
   First Lien Term Loan    9,256    9,359    (103 )
Six Months ended August 31, 2018
Issuer

Asset Type
   Gross Proceeds    Cost    Net
Realized
Gain (Loss)
Take 5 Oil Change, L.L.C.
   Equity Interests    $ 319    $ —      $ 319
TM Restaurant Group L.L.C.
   First Lien Term Loan    11,124    11,231    (107 )
Net change in unrealized appreciation (depreciation) on investments
For the three months ended ~~May~~August 31, 2019, our investments had a net change in unrealized appreciation of ~~$4.0~~$1.5 million versus a net change in unrealized ~~appreciation~~depreciation of ~~$0.6~~$2.2 million for the three months ended ~~May~~August 31, 2018. For the six months ended August 31, 2019, our investments had a net change in unrealized appreciation of $5.4 million versus a net change in unrealized depreciation of $1.5 million for the six months ended August 31, 2018. The most significant cumulative net change in unrealized appreciation (depreciation) for the ~~three~~six months ended ~~May~~August 31, 2019 were the following (dollars in thousands):
~~Three Months ended May 31, 2019~~
Six Months ended August 31, 2019 Six Months ended August 31, 2019
Issuer

Asset Type
   Cost    Fair
Value    Total
Unrealized
Appreciation
(Depreciation) YTD Change
in Unrealized
Appreciation
(Depreciation)
Asset Type
   Cost    Fair Value    Total
Unrealized
Appreciation    YTD Change in
Unrealized
Appreciation
Censis Technologies, Inc.
   Equity Interests    $ 999    $ 4,018    $ 3,019 $ 1,631    Equity Interests    $ —      $ 4,262    $ 4,262    $ 2,874
My Alarm Center, LLC
   Equity Interests    4,811    2,372    (2,439 ) (794 )
Saratoga Investment Corp. CLO2013-1, Ltd.
   Structured Finance Securities    24,899    28,024    3,125 1,248
Easy Ice, LLC
   Equity Interests    10,177    15,421    5,244    1,571
Netreo Holdings, LLC
   Equity Interests    3,150    6,641    3,491    1,462
The ~~$1.6~~$2.9 million net change in unrealized appreciation in our investment in Censis Technologies, Inc. was driven by continued outperformance of the business as well as the completion of a strategic acquisition.
The ~~$0.8~~$1.6 million net change in unrealized appreciation in our investment in Easy Ice, LLC was driven by a continued increase in the scale and earnings of the business.
The $1.5 million net change in unrealized appreciation in our investment in Netreo Holdings, LLC was driven by a continued increase in the scale and earnings of the business.
The most significant cumulative net change in unrealized appreciation (depreciation) for the six months ended August 31, 2018 were the following (dollars in thousands):
Six Months ended August 31, 2018
Issuer

Asset Type
   Cost    Fair Value    Total
Unrealized
Appreciation
(Depreciation) YTD Change in
Unrealized
Appreciation
(Depreciation)
Censis Technologies, Inc.
   Equity Interests    $ 999    $ 2,083    $ 1,084 $ 505
Elyria Foundry, L.L.C.
   Second Lien Term Loan & Equity Interests    10,634    2,726    (7,908 ) (1,657 )
HMN Holdco, LLC
   Equity Interests    500    5,609    5,109 638
My Alarm Center, LLC
   Equity Interests    4,155    2,680    (1,475 ) (1,188 )
Ohio Medical LLC
   Second Lien Term Loan & Equity Interests    7,757    6,441    (1,316 ) (440 )
The $0.5 million net change in unrealized appreciation in our investment in Censis Technologies, Inc. was driven by a continued increase in the scale and earnings of the business.
The $1.7 million net change in unrealized depreciation in our investment in Elyria Foundry, L.L.C. was driven by a decline in oil and gas end marketssince year-end, negatively impacting the Company’s performance.
The $0.6 million net change in unrealized appreciation in our investment in HMN Holdco, LLC was driven by a continued increase in the earnings of the business.
The $1.2 million net change in unrealized depreciation in our investment in My Alarm Center, LLC was driven by the issuance of new securities senior to existing investments.
The ~~$1.2~~$0.4 million ~~net change in unrealized appreciation in our investment in Saratoga Investment Corp. CLO2013-1,~~ ~~Ltd. was driven by continued outperformance of the Saratoga CLO.~~
~~The most significant cumulative net change in unrealized appreciation (depreciation) for the three months ended May 31, 2018 were the following (dollars in thousands):~~
~~Three Months ended May 31, 2018~~

Issuer

Asset Type
   Cost    Fair
Value    Total
Unrealized
Appreciation
(Depreciation) YTD Change
in Unrealized
Appreciation
(Depreciation)
Elyria Foundry Company, L.L.C
   Common Stock    $ 9,685    $ 2,672    $ (7,013 ) $ (761 )
Easy Ice, LLC
   Preferred Equity    8,980    11,676    2,696 697
HMN Holdco, LLC
   Warrant    —      3,166    3,166 469
~~The $0.8 million of~~ net change in unrealized depreciation in our investment in ~~Elyria Foundry, L.L.C. was driven by a decline in oil and gas end markets sinceyear-end,~~ ~~negatively impacting the Company’s performance.~~
~~The $0.7 million of net change in unrealized appreciation in our investment in Easy Ice,~~Ohio Medical LLC was driven by a continued ~~increase in the scale and earnings of the business.~~
~~The $0.5 million of net change in unrealized appreciation in our investment in HMN Holdco, LLC was driven by a continued increase~~decrease in the earnings of the business.
Changes in net assets resulting from operations
For the three months ended ~~May~~August 31, 2019 and ~~May~~August 31, 2018, we recorded a net increase in net assets resulting from operations of $7.6 million and ~~$3.8~~$3.1 million, respectively. Based on ~~7,746,187~~8,333,570 weighted average
common shares outstanding ~~as of May~~during the three month period ending August 31, 2019, our per share net increase in net assets resulting from operations was ~~$0.99~~$0.91 for the three months ended ~~May~~August 31, 2019. This compares to a per share net increase in net assets resulting from operations of ~~$0.61~~$0.45 for the three months ended ~~May~~August 31, 2018 based on ~~6,275,494~~6,915,966 weighted average common shares outstanding asfor the three months ended August 31, 2018.
For the six months ended August 31, 2019 and August 31, 2018, we recorded a net increase in net assets resulting from operations of ~~May~~$15.2 million and $7.0 million, respectively. Based on 8,041,365 weighted average common shares outstanding during the six month period ending August 31, 2019, our per share net increase in net assets resulting from operations was $1.89 for the six months ended August 31, 2019. This compares to a per share net increase in net assets resulting from operations of $1.06 for the six months ended August 31, 2018 based on 6,597,324 weighted average common shares outstanding for the six months ended August 31, 2018.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
We intend to continue to generate cash primarily from cash flows from operations, including interest earned from our investments in debt in middle market companies, interest earned from the temporary investment of cash in U.S. government securities and other high-quality debt investments that mature in one year or less, future borrowings and future offerings of securities.
Although we expect to fund the growth of our investment portfolio through the net proceeds from future equity offerings, including our dividend reinvestment plan (“DRIP”), and issuances of senior securities or future borrowings, to the extent permitted by the 1940 Act, we cannot assure you that our plans to raise capital will be successful. In this regard, because our common stock has historically traded at a price below our current net asset value per share and we are limited in our ability to sell our common stock at a price below net asset value per share, we have been and may continue to be limited in our ability to raise equity capital.
In addition, we intend to distribute to our stockholders substantially all of our taxable income in order to satisfy the distribution requirement applicable to RICs under the Code. In satisfying this distribution requirement, we have in the past relied on Internal Revenue Service (“IRS”) issued private letter rulings concluding that a RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder may elect to receive his or her entire distribution in either cash or stock of the RIC subject to a limitation on the aggregate amount of cash to be distributed to all stockholders, which limitation must be at least 20.0% of the aggregate declared distribution. We may rely on these IRS private letter rulings in future periods to satisfy our RIC distribution requirement.
Also, as a BDC, we generally are required to meet a coverage ratio of total assets, less liabilities and indebtedness not represented by senior securities, to total senior securities, which include all of our borrowings and any outstanding preferred stock, of at least 200.0%, reduced to 150.0% effective April 16, 2019 following the approval received from thenon-interested board of directors on April 16, 2018. This requirement limits the amount that we may borrow. Our asset coverage ratio, as defined in the 1940 Act, was ~~238.9%~~266.9% as of ~~May~~August 31, 2019 and 234.5% as of February 28, 2019. To fund growth in our investment portfolio in the future, we anticipate needing to raise additional capital from various sources, including the equity markets and other debt-related markets, which may or may not be available on favorable terms, if at all.
Consequently, we may not have the funds or the ability to fund new investments, to make additional investments in our portfolio companies, to fund our unfunded commitments to portfolio companies or to repay borrowings. Also, the illiquidity of our portfolio investments may make it difficult for us to sell these investments when desired and, if we are required to sell these investments, we may realize significantly less than their recorded value.
Madison revolving credit facility
Below is a summary of the terms of the senior secured revolving credit facility we entered into with Madison Capital Funding
LLC (the “Credit Facility”) on June 30, 2010, which was most recently amended on May 18, 2017.
Availability.The Company can draw up to the lesser of (i) $40.0 million (the “Facility Amount”) and (ii) the product of the applicable advance rate (which varies from 50.0% to 75.0% depending on the type of loan asset) and the value, determined in accordance with the Credit Facility (the “Adjusted Borrowing Value”), of certain
~~“eligible”~~ “eligible” loan assets pledged as security for the loan (the “Borrowing Base”), in each case less (a) the amount of any undrawn funding commitments the Company has under any loan asset and which are not covered by amounts in the Unfunded Exposure Account referred to below (the “Unfunded Exposure Amount”) and outstanding borrowings. Each loan asset held by the Company as of the date on which the Credit Facility was closed was valued as of that date and each loan asset that the Company acquires after such date will be valued at the lowest of its fair value, its face value (excluding accrued interest) and the purchase price paid for such loan asset. Adjustments to the value of a loan asset will be made to reflect, among other things, changes in its fair value, a default by the obligor on the loan asset, insolvency of the obligor, acceleration of the loan asset, and certain modifications to the terms of the loan asset.
The Credit Facility contains limitations on the type of loan assets that are “eligible” to be included in the Borrowing Base and as to the concentration level of certain categories of loan assets in the Borrowing Base such as restrictions on geographic and industry concentrations, asset size and quality, payment frequency, status and terms, average life, and collateral interests. In addition, if an asset
is to remain an “eligible” loan asset, the Company may not make changes to the payment, amortization, collateral and certain other terms of the loan assets without the consent of the administrative agent that will either result in subordination of the loan asset or be materially adverse to the lenders.
Collateral.The Credit Facility is secured by substantially all of the assets of the Company (other than assets held by our SBIC subsidiary) and includes the subordinated notes (“CLO Notes”) issued by Saratoga CLO and the Company’s rights under the CLO Management Agreement (as defined below).
Interest Rate and Fees.Under the Credit Facility, funds are borrowed from or through certain lenders at the greater of the prevailing LIBOR rate and 1.00%, plus an applicable margin of 4.75%. At the Company’s option, funds may be borrowed based on an alternative base rate, which in no event will be less than 2.00%, and the applicable margin over such alternative base rate is 3.75%. In addition, the Company pays the lenders a commitment fee of 0.75% per year on the unused amount of the Credit Facility for the duration of the Revolving Period (defined below). Accrued interest and commitment fees are payable monthly. The Company was also obligated to pay certain other fees to the lenders in connection with the closing of the Credit Facility.
Revolving Period and Maturity Date.The Company may make and repay borrowings under the Credit Facility for a period of three years following the closing of the Credit Facility (the “Revolving Period”). The Revolving Period may be terminated at an earlier time by the Company or, upon the occurrence of an event of default, by action of the lenders or automatically. All borrowings and other amounts payable under the Credit Facility are due and payable in full five years after the end of the Revolving Period.
Collateral Tests.It is a condition precedent to any borrowing under the Credit Facility that the principal amount outstanding under the Credit Facility, after giving effect to the proposed borrowings, not exceed the lesser of the Borrowing Base or the Facility Amount (the “Borrowing Base ~~Test”~~Test��). In addition to satisfying the Borrowing Base Test, the following tests must also be satisfied (together with Borrowing Base Test, the “Collateral Tests”):
•
Interest Coverage Ratio.The ratio (expressed as a percentage) of interest collections with respect to pledged loan assets, less certain fees and expenses relating to the Credit Facility, to accrued interest and commitment fees and any breakage costs payable to the lenders under the Credit Facility for the last 6 payment periods must equal at least 175.0%.

•
Overcollateralization Ratio.The ratio (expressed as a percentage) of the aggregate Adjusted Borrowing Value of “eligible” pledged loan assets plus the fair value of certain ineligible pledged loan assets and the CLO Notes (in each case, subject to certain adjustments) to outstanding borrowings under the Credit Facility plus the Unfunded Exposure Amount must equal at least 200.0%.

•
Weighted Average FMV Test.The aggregate adjusted or weighted value of “eligible” pledged loan assets as a percentage of the aggregate outstanding principal balance of “eligible” pledged loan assets
must be equal to or greater than 72.0% and 80.0% during theone-year periods prior to the first and second anniversary of the closing date, respectively, and 85.0% at all times thereafter.
The Credit Facility also requires payment of outstanding borrowings or replacement of pledged loan assets upon the Company’s breach of its representation and warranty that pledged loan assets included in the Borrowing Base are “eligible” loan assets. Such payments or replacements must equal the lower of the amount by which the Borrowing Base is overstated as a result of such breach or any deficiency under the Collateral Tests at the time of repayment or replacement. Compliance with the Collateral Tests is also a condition to the discretionary sale of pledged loan assets by the Company.
Priority of Payments.During the Revolving Period, the priority of payments provisions of the Credit Facility require, after payment of specified fees and expenses and any necessary funding of the Unfunded Exposure Account, that collections of principal from the loan assets and, to the extent that these are insufficient, collections of interest from the loan assets, be applied on each payment date to payment of outstanding borrowings if the Borrowing Base Test, the Overcollateralization Ratio and the Interest Coverage Ratio would not otherwise be met. Similarly, following termination of the Revolving Period, collections of interest are required to be applied, after payment of certain fees and expenses, to cure any deficiencies in the Borrowing Base Test, the Interest Coverage Ratio and the Overcollateralization Ratio as of the relevant payment date.
Reserve Account.The Credit Facility requires the Company to set aside an amount equal to the sum of accrued interest, commitment fees and administrative agent fees due and payable on the next succeeding three payment dates (or corresponding to three payment periods). If for any monthly period during which fees and other payments accrue, the aggregate Adjusted Borrowing Value of “eligible” pledged loan assets which do not pay cash interest at least quarterly exceeds 15.0% of the aggregate Adjusted Borrowing Value of “eligible” pledged loan assets, the Company is required to set aside such interest and fees due and payable on the next succeeding six payment dates. Amounts in the reserve account can be applied solely to the payment of administrative agent fees, commitment fees, accrued and unpaid interest and any breakage costs payable to the lenders.
Unfunded Exposure Account.With respect to revolver or delayed draw loan assets, the Company is required to set aside in a designated account (the “Unfunded Exposure Account”) 100.0% of its outstanding and undrawn funding commitments with respect to such loan assets. The Unfunded Exposure Account is funded at the time the Company acquires a revolver or delayed draw loan asset and requests a related borrowing under the Credit Facility. The Unfunded Exposure Account is funded through a combination of proceeds of the requested borrowing and other Company funds, and if for any reason such amounts are insufficient, through application of the priority of payment provisions described above.
Operating Expenses.The priority of payments provision of the Credit Facility provides for the payment of certain operating expenses of the Company out of collections on principal and interest during the Revolving Period and out of collections on interest following the termination of the Revolving Period in accordance with the priority established in such provision. The operating expenses payable pursuant to the priority of payment provisions is limited to $350,000 for each monthly payment date or $2.5 million for the immediately preceding period of twelve consecutive monthly payment dates. This ceiling can be increased by the lesser of 5.0% or the percentage increase in the fair market value of all the Company’s assets only on the first monthly payment date to occur after eachone-year anniversary following the closing of the Credit Facility. Upon the occurrence of a Manager Event (described below), the consent of the administrative agent is required in order to pay operating expenses through the priority of payments provision.
Events of Default.The Credit Facility contains certain negative covenants, customary representations and warranties and affirmative covenants and events of default. The Credit Facility does not contain grace periods for breach by the Company of certain covenants, including, without limitation, preservation of existence, negative pledge, change of name or jurisdiction and separate legal entity status of the Company covenants and certain
other customary covenants. Other events of default under the Credit Facility include, among other things, the following:

an Interest Coverage Ratio of less than 150.0%;

an Overcollateralization Ratio of less than 175.0%;
the filing of certain ERISA or tax liens;

the occurrence of certain “Manager Events” such as:

failure by Saratoga Investment Advisors and its affiliates to maintain collectively, directly or indirectly, a cash equity investment in the Company in an amount equal to at least $5.0 million at any time prior to the third anniversary of the closing date;

failure of the Management Agreement between Saratoga Investment Advisors and the Company to be in full force and effect;

indictment or conviction of Saratoga Investment Advisors or any “key person” for a felony offense, or any fraud, embezzlement or misappropriation of funds by Saratoga Investment Advisors or any “key person” and, in the case of “key persons,” without a reputable, experienced individual reasonably satisfactory to Madison Capital Funding appointed to replace such key person within 30 days;

resignation, termination, disability or death of a “key person” or failure of any “key person” to provide active participation in Saratoga Investment Advisors’ daily activities, all without a reputable, experienced individual reasonably satisfactory to Madison Capital Funding appointed within 30 days; or

occurrence of any event constituting “cause” under the Collateral Management Agreement between the Company and Saratoga CLO (the “CLO Management Agreement”), delivery of a notice under Section 12(c) of the CLO Management Agreement with respect to the removal of the Company as collateral manager or the Company ceases to act as collateral manager under the CLO Management Agreement.
Conditions to Acquisitions and Pledges of Loan Assets.The Credit Facility imposes certain additional conditions to the acquisition and pledge of additional loan assets. Among other things, the Company may not acquire additional loan assets without the prior written consent of the administrative agent until such time that the administrative agent indicates in writing its satisfaction with Saratoga Investment Advisors’ policies, personnel and processes relating to the loan assets.
Fees and Expenses.The Company paid certain fees and reimbursed Madison Capital Funding LLC for the aggregate amount of all documented,out-of-pocket costs and expenses, including the reasonable fees and expenses of lawyers, incurred by Madison Capital Funding LLC in connection with the Credit Facility and the carrying out of any and all acts contemplated thereunder up to and as of the date of closing of the stock purchase transaction with Saratoga Investment Advisors and certain of its affiliates. These amounts totaled $2.0 million.
On February 24, 2012, we amended our senior secured revolving credit facility with Madison Capital Funding LLC to, among other things:

expand the borrowing capacity under the Credit Facility from $40.0 million to $45.0 million;

extend the period during which we may make and repay borrowings under the Credit Facility from July 30, 2013 to February 24, 2015 (the “Revolving Period”). The Revolving Period may, upon the occurrence of an event of default, by action of the lenders or automatically, be terminated. All borrowings and other amounts payable under the Credit Facility are due and payable five years after the end of the Revolving Period; and
remove the condition that we may not acquire additional loan assets without the prior written consent of the administrative agent.
On September 17, 2014, we entered into a second amendment to the Revolving Facility with Madison Capital Funding LLC to, among other things:

extend the commitment termination date from February 24, 2015 to September 17, 2017;

extend the maturity date of the Revolving Facility from February 24, 2020 to September 17, 2022 (unless terminated sooner upon certain events);

reduce the applicable margin rate on base rate borrowings from 4.50% to 3.75%, and on LIBOR borrowings from 5.50% to 4.75%; and

reduce the floor on base rate borrowings from 3.00% to 2.25%; and on LIBOR borrowings from 2.00% to 1.25%.
On May 18, 2017, we entered into a third amendment to the Credit Facility with Madison Capital Funding LLC to, among other things:

extend the commitment termination date from September 17, 2017 to September 17, 2020;

extend the final maturity date of the Credit Facility from September 17, 2022 to September 17, 2025;

reduce the floor on base rate borrowings from 2.25% to 2.00%;

reduce the floor on LIBOR borrowings from 1.25% to 1.00%; and

reduce the commitment fee rate from 0.75% to 0.50% for any period during which the ratio of advances outstanding to aggregate commitments, expressed as a percentage, is greater than or equal to 50%.
As of ~~May~~August 31, 2019, we had ~~$0.0 million of~~no outstanding borrowings under the Credit Facility and $150.0 million ofSBA-guaranteed debentures outstanding (which are discussed below). As of February 28, 2019, we had no outstanding borrowings under the Credit Facility and $150.0 million ofSBA-guaranteed debentures outstanding. Our borrowing base under the Credit Facility at ~~May~~August 31, 2019 and February 28, 2019 was ~~$27.3~~$40.2 million and $30.6 million, respectively.
Our asset coverage ratio, as defined in the 1940 Act, was ~~238.9%~~266.9% as of ~~May~~August 31, 2019 and 234.5% as of February 28, 2019.
SBA-guaranteed debentures
In addition, we, through atwo wholly-owned ~~subsidiary,~~subsidiaries, sought and obtained ~~a license~~licenses from the SBA to operate an SBIC. In this regard, on March 28, 2012, our wholly-owned subsidiary, Saratoga Investment Corp. SBIC LP, received a license from the SBA to operate as an SBIC under Section 301(c) of the Small Business Investment Act of ~~1958.~~1958 and on August 14, 2019, our wholly-owned subsidiary, Saratoga Investment Corp. SBIC II LP, also received a license. SBICs are designated to stimulate the flow of private equity capital to eligible small businesses. Under SBA regulations, SBICs may make loans to eligible small businesses and invest in the equity securities of small businesses.
The SBIC ~~license~~licenses allows our SBIC ~~subsidiary~~subsidiaries to obtain leverage by issuingSBA-guaranteed debentures.SBA-guaranteed debentures arenon-recourse, interest only debentures with interest payable semi-annually and have aten-year maturity. The principal amount of
SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate ofSBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes withten-year maturities.
SBA regulations ~~currently limit~~previously limited the amount that our SBIC subsidiary may borrow to a maximum of $150.0 million when it has at least $75.0 million in regulatory capital, receives a capital commitment from the SBA and has been through an examination by the SBA subsequent to licensing. This maximum has been increased by SBA regulators for new licenses to $175.0 million of SBA debentures when it has at least $87.5 million in regulatory capital. As of ~~May~~August 31, 2019, our SBIC I subsidiary had $75.0 million in regulatory capital and $150.0 million SBA-guaranteed debentures outstanding and our SBIC II subsidiary had $15.8 million in regulatory capital and $0.0 million~~SBA-~~SBA-guaranteed ~~guaranteed~~ debentures outstanding.
We received exemptive relief from the SEC to permit us to exclude the debt of our SBIC ~~subsidiary~~subsidiaries guaranteed by the SBA from the definition of senior securities in the asset coverage test under the 1940 Act. This allows us increased flexibility under the asset coverage test by permitting us to borrow up to $150.0 million more than we would otherwise be able to absent the receipt of this exemptive relief. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, our~~non-~~ ~~interested~~ non-interested board of directors approved of our becoming subject to a minimum asset coverage ratio of 150.0% from 200% under Sections 18(a)(1) and 18(a)(2) of the 1940 Act. The 150.0% asset coverage ratio became effective on April 16, 2019.
On September 27, 2018, the SBA issued a “green light” letter inviting us to file a formal license application for a second SBIC license. If approved, the additional SBIC license would provide the Company with an incremental source of long-term capital by permitting us to issue, subject to SBA approval, up to $175.0 million of additional~~SBA-guaranteed~~ debentures in addition to the $150.0 million already approved under the Company’s first license. Receipt of a green light letter from the SBA does not assure an applicant that the SBA will ultimately issue an SBIC license and the Company has received no assurance or indication from the SBA that it will receive an additional SBIC license, or of the timeframe in which it would receive an additional license, should one ultimately be granted.
Unsecured notes
In May 2013, we issued $48.3 million in aggregate principal amount of our 2020 Notes for net proceeds of $46.1 million after deducting underwriting commissions of $1.9 million and offering costs of $0.3 million. The proceeds included the underwriters’ full exercise of their overallotment option. Interest on these 2020 Notes is paid quarterly in arrears on February 15, May 15, August 15 and November 15, at a rate of 7.50% per year, beginning August 15, 2013. The 2020 Notes mature on May 31, 2020 and since May 31, 2016, may be redeemed in whole or in part at any time or from time to time at our option. In connection with the issuance of the 2020 Notes, we agreed to the following covenants for the period of time during which the 2020 Notes are outstanding:
we will not violate (whether or not we are subject to) Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions, but giving effect to any exemptive relief granted to us by the SEC. Currently, these provisions generally prohibit us from making additional borrowings, including through the issuance of additional debt or the sale of additional debt securities, unless our asset coverage, as defined in the 1940 Act, equals at least 200.0% after such borrowings.

we will not violate (regardless of whether we are subject to) Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions, but giving effect to (i) any exemptive relief granted to us by the SEC and(ii) no-action relief granted by the SEC to another BDC (or to the Company if it determines to seek such similarno-action or other relief) permitting the BDC to declare any cash dividend or distribution notwithstanding the prohibition contained in Section 18(a) (1)(B) as modified by Section 61(a)(1) of the 1940 Act in order to maintain the BDC’s status as a regulated investment company under the Code. Currently these provisions generally prohibit us from declaring any cash dividend or distribution upon any class of our capital stock, or purchasing any such capital stock if our asset coverage, as defined in the 1940 Act, is below 200.0% at the time of the declaration of the dividend or distribution or the purchase and after deducting the amount of such dividend, distribution or purchase.
The 2020 Notes were redeemed in full on January 13, 2017 and are no longer listed on the NYSE.
On May 29, 2015, we entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which we may offer for sale, from time to time, up to $20.0 million in aggregate principal amount of the 2020 Notes through an ATM offering. Prior to the 2020 Notes being redeemed in full, the Company had sold 539,725 bonds with a principal of $13.5 million at an average price of $25.31 for aggregate net proceeds of $13.4 million (net of transaction costs).
On December 21, 2016, we issued $74.5 million in aggregate principal amount of our 2023 Notes for net proceeds of $71.7 million after deducting underwriting commissions of approximately $2.3 million and offering costs of approximately $0.5 million. The issuance included the exercise of substantially all of the underwriters’ option to purchase an additional $9.8 million aggregate principal amount of 2023 Notes within 30 days. Interest on the 2023 Notes is paid quarterly in arrears on March 15, June 15, September 15 and December 15, at a rate of 6.75% per year, beginning March 30, 2017. The 2023 Notes mature on December 30, 2023, and commencing December 21, 2019, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used to repay all of the outstanding indebtedness under the 2020 Notes on January 13, 2017, which amounted to $61.8 million, and for general corporate purposes in accordance with our investment objective and strategies. The 2023 Notes are listed on the NYSE under the trading symbol “SAB” with a par value of $25.00 per share.
On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of our 6.25% fixed-rate notes due 2025 (the “2025 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.3 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $5.0 million aggregate principal amount of 2025 Notes within 30 days. Interest on the 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning November 30, 2018. The 2025 Notes mature on August 31, 2025 and commencing August 28, 2021, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 2025 Notes have been capitalized and are being amortized over the term of the 2025 Notes. The 2025 Notes are listed on the NYSE under the trading symbol “SAF” with a par value of $25.00 per share.
On February 5, 2019, the Company completed are-opening andup-sizing of its existing 2025 Notes by issuing an additional $20.0 million in aggregate principal amount for net proceeds of $19.2 million after deducting underwriting commissions of approximately $0.6 million and discount of $0.2 million. Offering costs incurred were approximately $0.2 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $2.5 million aggregate principal amount of 2025 Notes within 30 days. Interest rate, interest payment dates and maturity remain unchanged from the existing 2025 Notes issued in August 2018. The net proceeds from this offering were used for general corporate purposes in accordance with our investment objective and strategies. The financing costs and discount of $1.0 million related to the 2025 Notes have been capitalized and are being amortized over the term of the 2025 Notes.
At ~~May~~August 31, 2019, the total 2023 Notes and 2025 Notes outstanding was $74.5 million and $60.0 million, respectively.
In connection with the issuance of the 2023 Notes and 2025 Notes, we agreed to the following covenants for the period of time during which the notes are outstanding:

we will not violate (whether or not we are subject to) Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions, but giving effect to any exemptive relief granted to us by the SEC. These provisions generally prohibit us from making additional borrowings, including through the issuance of additional debt or the sale of additional debt securities, unless our asset coverage, as defined in the 1940 Act, equals at least 200% after such borrowings, or, if we obtain the required approvals from our independent directors and/or stockholders, 150% (after deducting the amount of such dividend, distribution or purchase price, as the case may be).
we will not declare any dividend (except a dividend payable in our stock), or declare any other distribution, upon a class of our capital stock, or purchase any such capital stock, unless, in every such case, at the time of the declaration of any such dividend or distribution, or at the time of any such purchase, we have an asset coverage (as defined in the 1940 Act) of at least 150.0%, as such obligation may be amended or superseded, after deducting the amount of such dividend, distribution or purchase price, as the case may be, and in each case giving effect to (i) any exemptive relief granted to us by the SEC, and (ii) anySECno-action relief ~~relief~~ granted by the SEC to another BDC (or to us if we determine to seek suchsimilarno-action or or other relief) permitting the BDC to declare any cash dividend or distribution notwithstanding the prohibition contained in Section 18(a)(1)(B) as modified by such provisions of Section 61(a) of the 1940 Act as may be applicable to us from time to time, as such obligation may be amended or superseded, in order to maintain such BDC’s status as a regulated investment company under Subchapter M of the Code.

if, at any time, we are not subject to the reporting requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934, or the Exchange Act, to file any periodic reports with the SEC, we agree to furnish to holders of the 2023 Notes and 2025 Notes and the Trustee, for the period of time during which the 2023 Notes and/or the 2025 Notes are outstanding, our audited annual consolidated financial statements, within 90 days of our fiscal year end, and unaudited interim consolidated financial statements, within 45 days of our fiscal quarter end (other than our fourth fiscal quarter). All such financial statements will be prepared, in all material respects, in accordance with applicable United States generally accepted accounting principles.
At ~~May~~August 31, 2019 and February 28, 2019, the fair value of investments, cash and cash equivalents and cash and cash equivalents, reserve accounts were as follows:

   May 31, 2019 February 28, 2019    August 31, 2019 February 28, 2019
   Fair Value    Percentage of
Total Fair Value    Percentage of
Total    Fair Value    Percentage of
Total Fair Value    Percentage of
Total
   ($ in thousands)    ($ in thousands)
Cash and cash equivalents
   $ 37,184    7.9 % $ 30,799    6.6 %    $ 2,847    0.6 % $ 30,799    6.6 %
Cash and cash equivalents, reserve accounts
   23,813    5.1 31,295    6.7    21,272    4.2 31,295    6.7
First lien term loans
   219,479    46.7 202,846    43.7    304,259    59.5 202,846    43.7
Second lien term loans
   109,305    23.2 125,786    27.1    100,030    19.6 125,786    27.1
Unsecured term loans
   2,058    0.4 2,100    0.5    2,074    0.4 2,100    0.5
Structured finance securities
   37,965    8.1 35,328    7.6    35,894    7.0 35,328    7.6
Equity interests
   40,644    8.6 35,960    7.8    44,623    8.7 35,960    7.8












Total
   $ 470,448    100.0 % $ 464,114    100.0 %    $ 510,999    100.0 % $ 464,114    100.0 %












On July 13, 2018, the Company issued 1,150,000 shares of its common stock priced at $25.00 per share (par value $0.001 per share) at an aggregate total of $28.75 million. The net proceeds, after deducting underwriting commissions of $1.15 million and offering costs of approximately $0.2 million, amounted to approximately $27.4 million. The Company also granted the underwriters a30-day option to purchase up to an additional 172,500 shares of its common stock, which was not exercised.
On March 16, 2017, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc., through which we may offer for sale, from time to time, up to $30.0 million of our common stock through an ATM offering. Subsequent to this, BB&T Capital Markets and B. Riley FBR, Inc. were also added to the agreement. On July 9,11, 2019, the amount of common stock to be offered through this offering was increased to $70.0 million, and on October 8, 2019, the amount of the common stock to be offered was increased to $130.0 million. As of ~~May~~August 31, 2019, the Company sold ~~571,120~~1,942,786 shares for gross proceeds of ~~$13.0~~$47.1 million at an average price of ~~$22.78~~$24.25 for aggregate net proceeds of ~~$12.9~~$46.5 million (net of transaction costs).
For the three months ended August 31, 2019, the Company sold 1,371,667 shares for gross proceeds of $34.1 million at an average price of $24.86 for aggregate net proceeds of $33.6 million (net of transaction costs).
For the six months ended August 31, 2019, the Company sold 1,448,115 shares for gross proceeds of $35.9 million at an average price of $24.77 for aggregate net proceeds of $35.4 million (net of transaction costs).
On September 24, 2014, we announced the approval of an open market share repurchase plan that allows it to repurchase up to 200,000 shares of our common stock at prices below our NAV as reported in its then most recently published consolidated financial statements, which was subsequently increased to 400,000 shares of our
common stock. On October 5, 2016, our board of directors extended the open market share repurchase plan for another year to October 15, 2017 and increased the number of shares we are permitted to repurchase at prices below our NAV, as reported in its then most recently published consolidated financial statements, to 600,000 shares of our common stock. On October 10, 2017 and January 8, 2019, the Company’s board of directors extended the open market share repurchase plan for another year to October 15, 2018 and January 15, 2020, respectively, each time leaving the number of shares unchanged at 600,000 shares of its common stock. As of ~~May~~August 31, 2019, we purchased 218,491 shares of common stock, at the average price of $16.87 for approximately $3.7 million pursuant to this repurchase plan.
On August 27, 2019, the Company declared a dividend of $0.56 per share payable on September 26, 2019, to common stockholders of record on September 13, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $4.5 million in cash and 34,575 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.34 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on September 13, 16, 17, 18, 19, 20, 23, 24, 25 and 26, 2019.
On May 28, 2019, our board of directors declared a dividend of $0.55 per share, which was paid on June 27, 2019, to common stockholders of record as of June 13, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to ~~the Company’s~~our DRIP. Based on shareholder elections, the dividend consisted of approximately $3.6 million in cash and 31,545 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $22.65 per share, which equaled ~~95.0% of~~ the volume weighted average trading price per share of the common stock on June 14, 17, 18, 19, 20, 21, 24, 25, 26 and 27, 2019.
On February 26, 2019, our board of directors declared a dividend of $0.54 per share, which was paid on March 28, 2019, to common stockholders of record as of March 14, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $3.5 million in cash and 31,240 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.36 per share, which equaled ~~95.0% of~~ the volume weighted average trading price per share of the common stock on March 15, 18, 19, 20, 21, 22, 25, 26, 27 and 28, 2019.
On November 27, 2018, our board of directors declared a dividend of $0.53 per share, which was paid on January 2, 2019, to common stockholders of record on December 17, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $3.4 million in cash and 30,796 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $18.88 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on December 18, 19, 20, 21, 24, 26, 27, 28, 31, 2018 and January 2, 2019.
On August 28, 2018, our board of directors declared a dividend of $0.52 per share, which was paid on September 27, 2018, to common stockholders of record as of September 17, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $3.3 million in cash and 25,862 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $22.35 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on September 14, 17, 18, 19, 20, 21, 24, 25, 26 and 27, 2018.
On May 30, 2018, our board of directors declared a dividend of $0.51 per share, which was paid on June 27, 2018, to common stockholders of record as of June 15, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $2.7 million in cash and 21,562 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.72 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on June 14, 15, 18, 19, 20, 21, 22, 25, 26 and 27, 2018.
On February 26, 2018, our board of directors declared a dividend of $0.50 per share, which was paid on March 26, 2018, to common stockholders of record as of March 14, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $2.6 million in cash and 25,354 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $19.91 per share, which equaled the volume weighted average trading price per share of the common stock on March 13, 14, 15, 16, 19, 20, 21, 22, 23 and 26, 2018.
On November 29, 2017, our board of directors declared a dividend of $0.49 per share, which was paid on December 27, 2017, to common stockholders of record on December 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $2.5 million in cash and 25,435 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.14 per share, which equaled the volume weighted average trading price per share of the common stock on December 13, 14, 15, 18, 19, 20, 21, 22, 26 and 27, 2017.
On August 28, 2017, our board of directors declared a dividend of $0.48 per share, which was paid on September 26, 2017, to common stockholders of record on September 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $2.2 million in cash and 33,551 newly issued shares of common stock, or 0.6% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.19 per share, which equaled the volume weighted average trading price per share of the common stock on September 13, 14, 15, 18, 19, 20, 21, 22, 25 and 26, 2017.
On May 30, 2017, our board of directors declared a dividend of $0.47 per share, which was paid on June 27, 2017, to common stockholders of record on June 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $2.3 million in cash and 26,222 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.04 per share, which equaled the volume weighted average trading price per share of the common stock on June 14, 15, 16, 19, 20, 21, 22, 23, 26 and 27, 2017.
On February 28, 2017, our board of directors declared a dividend of $0.46 per share, which was paid on March 28, 2017, to common stockholders of record as of March 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $2.0 million in cash and 29,096 newly issued shares of common stock, or 0.5% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.38 per share, which equaled the volume weighted average trading price per share of the common stock on March 15, 16, 17, 20, 21, 22, 23, 24, 27 and 28, 2017.
On January 12, 2017, our board of directors declared a dividend of $0.45 per share, which was paid on February 9, 2017, to common stockholders of record as of January 31, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.6 million in cash and 50,453 newly issued shares of common stock, or 0.9% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.25 per share, which equaled the volume weighted average trading price per share of the common stock on January 27, 30, 31 and February 1, 2, 3, 6, 7, 8 and 9, 2017.
On October 5, 2016, our board of directors declared a dividend of $0.44 per share, which was paid on November 9, 2016, to common stockholders of record as of October 31, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 58,548 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.12 per share, which equaled the volume weighted average trading price per share of the common stock on October 27, 28, 31 and November 1, 2, 3, 4, 7, 8 and 9, 2016.
On August 8, 2016, our board of directors declared a special dividend of $0.20 per share, which was paid on September 5, 2016, to common stockholders of record as of August 24, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $0.7 million in cash and 24,786 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.06 per share, which equaled the volume weighted average trading price per share of the common stock on August 22, 23, 24, 25, 26, 29, 30, 31 and September 1 and 2, 2016.
On July 7, 2016, our board of directors declared a dividend of $0.43 per share, which was paid on August 9, 2016, to common stockholders of record as of July 29, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 58,167 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.32 per share, which equaled the volume weighted average trading price per share of the common stock on July 27, 28, 29 and August 1, 2, 3, 4, 5, 8 and 9, 2016.
On March 31, 2016, our board of directors declared a dividend of $0.41 per share, which was paid on April 27, 2016, to common stockholders of record as of April 15, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 56,728 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.43 per share, which equaled the volume weighted average trading price per share of the common stock on April 14, 15, 18, 19, 20, 21, 22, 25, 26 and 27, 2016.
On January 12, 2016, our board of directors declared a dividend of $0.40 per share, which was paid on February 29, 2016, to common stockholders of record as of February 1, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.4 million in cash and 66,765 newly issued shares of common stock, or 1.2% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $13.11 per share, which equaled the volume weighted average trading price per share of the common stock on February 16, 17, 18, 19, 22, 23, 24, 25, 26 and 29, 2016.
On October 7, 2015, our board of directors declared a dividend of $0.36 per share, which was paid on November 30, 2015, to common stockholders of record as of November 2, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.1 million in cash and 61,029 newly issued shares of common stock, or 1.1% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $14.53 per share, which equaled the volume weighted average trading price per share of the common stock on November 16, 17, 18, 19, 20, 23, 24, 25, 27 and 30, 2015.
On July 8, 2015, our board of directors declared a dividend of $0.33 per share, which was paid on August 31, 2015, to common stockholders of record as of August 3, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.1 million in cash and 47,861 newly issued shares of common stock, or 0.9% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.28 per share, which equaled the volume weighted average trading price per share of the common stock on August 18, 19, 20, 21, 24, 25, 26, 27, 28 and 31, 2015.
On May 14, 2015, our board of directors declared a special dividend of $1.00 per share, which was paid on June 5, 2015, to common stockholders of record on as of May 26, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $3.4 million in cash and 126,230 newly issued shares of common stock, or 2.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.47 per share, which equaled the volume weighted average trading price per share of the common stock on May 22, 26, 27, 28, 29 and June 1, 2, 3, 4 and 5, 2015.
On April 9, 2015, our board of directors declared a dividend of $0.27 per share, which was paid on May 29, 2015, to common stockholders of record as of May 4, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $0.9 million in cash and 33,766 newly issued shares of common stock, or 0.6% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.78 per share, which equaled the volume weighted average trading price per share of the common stock on May 15, 18, 19, 20, 21, 22, 26, 27, 28 and 29, 2015.
On September 24, 2014, our board of directors declared a dividend of $0.22 per share, which was paid on February 27, 2015, to common stockholders of record on February 2, 2015. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $0.8 million in cash and 26,858 newly issued shares of common stock, or 0.5% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $14.97 per share, which equaled the volume weighted average trading price per share of the common stock on February 13, 17, 18, 19, 20, 23, 24, 25, 26 and 27, 2015.
Also, on September 24, 2014, our board of directors declared a dividend of $0.18 per share, which was paid on November 28, 2014, to common stockholders of record on November 3, 2014. Shareholders had the option to receive payment of the dividend in cash or receive shares of common stock pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $0.6 million in cash and 22,283 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $14.37 per share, which equaled the volume weighted average trading price per share of the common stock on November 14, 17, 18, 19, 20, 21, 24, 25, 26 and 28, 2014.
On October 30, 2013, our board of directors declared a dividend of $2.65 per share, which was paid on December 27, 2013, to common stockholders of record as of November 13, 2013. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to approximately $2.5 million or $0.53 per share. This dividend was declared in reliance on certain private letter rulings issued by the IRS concluding that a RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder may elect to receive his or her entire distribution in either cash or stock of the
RIC subject to a limitation on the aggregate amount of cash to be distributed to all stockholders, which limitation must be at least 20.0% of the aggregate declared distribution. Based on shareholder elections, the dividend consisted of approximately $2.5 million in cash and 649,500 shares of common stock, or 13.7% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 20.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.439 per share, which equaled the volume weighted average trading price per share of the common stock on December 11, 13, and 16, 2013.
On November 9, 2012, our board of directors declared a dividend of $4.25 per share, which was paid on December 31, 2012, to common stockholders of record as of November 20, 2012. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was
limited to approximately $3.3 million or $0.85 per share. Based on shareholder elections, the dividend consisted of $3.3 million in cash and 853,455 shares of common stock, or 22.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 20.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.444 per share, which equaled the volume weighted average trading price per share of the common stock on December 14, 17 and 19, 2012.
On November 15, 2011, our board of directors declared a dividend of $3.00 per share, which was paid on December 30, 2011, to common stockholders of record as of November 25, 2011. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to $2.0 million or $0.60 per share. Based on shareholder elections, the dividend consisted of $2.0 million in cash and 599,584 shares of common stock, or 18.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 20.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $13.117067 per share, which equaled the volume weighted average trading price per share of the common stock on December 20, 21 and 22, 2011.
On November 12, 2010, our board of directors declared a dividend of $4.40 per share to shareholders payable in cash or shares of our common stock, in accordance with the provisions of the IRS Revenue Procedure2010-12, which allows a publicly-traded regulated investment company to satisfy its distribution requirements with a distribution paid partly in common stock provided that at least 10.0% of the distribution is payable in cash. The dividend was paid on December 29, 2010 to common shareholders of record on November 19, 2010. Based on shareholder elections, the dividend consisted of $1.2 million in cash and 596,235 shares of common stock, or 22.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 10.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.8049 per share, which equaled the volume weighted average trading price per share of the common stock on December 20, 21 and 22, 2010.
On November 13, 2009, our board of directors declared a dividend of $18.25 per share, which was paid on December 31, 2009, to common stockholders of record as of November 25, 2009. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to $2.1 million or $0.25 per share. Based on shareholder elections, the dividend consisted of $2.1 million in cash and 864,872.5 shares of common stock, or 104.0% of our outstanding common stock prior to the dividend payment. The amount of cash
elected to be received was greater than the cash limit of 13.7% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $1.5099 per share, which equaled the volume weighted average trading price per share of the common stock on December 24 and 28, 2009.
We cannot provide any assurance that these measures will provide sufficient sources of liquidity to support our operations and growth.
Contractual obligations
~~The following table shows our payment obligations for repayment of debt and other contractual obligations as of May 31, 2019:~~
      Payment Due by Period
   Total    Less Than
1 Year    1 - 3
Years    3 - 5
Years    More Than
5 Years
Long-Term Debt Obligations
   ($ in thousands)
Revolving credit facility
   $ —      $ —      $ —      $ —      $ —
SBA debentures
   150,000    —      —      64,000    86,000
2023 Notes
   74,451    —      —      74,451    —
2025 Notes
   60,000    —      —      —      60,000










Total Long-Term Debt Obligations
   $ 284,451    $ —      $ —      $ 138,451    $ 146,000











      Payment Due by Period
Long-Term Debt Obligations
   Total    Less Than
1 Year    1 - 3
Years    3 - 5
Years    More Than
5 Years
   ($ in thousands)
Revolving credit facility
   $ —      $ —      $ —      $ —      $ —
SBA debentures
   150,000    —      —      50,000    100,000
2023 Notes
   74,451    —      —      74,451    —
2025 Notes
   60,000    —      —      —      60,000










Total Long-Term Debt Obligations
   $ 284,451    $ —      $ —      $ 124,451    $ 160,000










Off-balance sheet arrangements
As of ~~May~~August 31, 2019 and February 28, 2019, the Company’soff-balance sheet arrangements consisted of ~~$24.5~~$26.0 million and $4.5 million, respectively, of unfunded commitments outstanding to provide debt financing to its portfolio companies or to fund limited partnership interests. Such commitments are generally up to the Company’s discretion to approve, or the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’s consolidated statements of assets and liabilities and are not reflected in the Company’s consolidated statements of assets and liabilities.
A summary of the unfunded commitments outstanding as of ~~May~~August 31, 2019 and February 28, 2019 is shown in the table below (dollars in thousands):


   May 31, 2019    February 28, 2019    August 31, 2019    February 28, 2019
At Company’s discretion

Omatic Software, LLC
   $ 1,000    $ 1,000
inMotionNow, Inc.
   3,000    —
PDDS Buyer, LLC
   5,000    —
Top Gun Pressure Washing, LLC
   5,000    —




   14,000    1,000




At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required

Axiom Purchaser, Inc.
   $ 1,000    $ 1,000    1,000    1,000
CoConstruct, LLC
   3,500    —
Destiny Solutions, Inc.
   1,500    1,500    1,500    1,500
Fancy Chap, Inc.
   14,000    —      —      —
GDS Holdings US, Inc.
   —      1,000    —      1,000
HemaTerra Holding Company, LLC
   2,000    —
Hema Terra Holding Company, LLC
   4,000    —
inMotionNow, Inc.
   5,000    —      2,000    —
Omatic Software, LLC
   1,000    1,000




   12,000    3,500








Total
   $ 24,500    $ 4,500    $ 26,000    $ 4,500








ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our business activities contain elements of market risk. We consider our principal market risk to be the fluctuation in interest rates. Managing this risk is essential to our business. Accordingly, we have systems and
procedures designed to identify and analyze our risks, to establish appropriate policies and thresholds and to continually monitor this risk and thresholds by means of administrative and information technology systems and other policies and processes.
Interest rate risk is defined as the sensitivity of our current and future earnings to interest rate volatility, including relative changes in different interest rates, variability of spread relationships, the difference inre-pricing intervals between our assets and liabilities and the effect that interest rates may have on our cash flows. Changes in the general level of interest rates can affect our net interest income, which is the difference between the interest income earned on interest earning assets and our interest expense incurred in connection with our interest-bearing debt and liabilities. Changes in interest rates can also affect, among other things, our ability to acquire leveraged loans, high yield bonds and other debt investments and the value of our investment portfolio.
Our investment income is affected by fluctuations in various interest rates, including LIBOR and the prime rate. A large portion of our portfolio is, and we expect will continue to be, comprised of floating rate investments that utilize LIBOR. Our interest expense is affected by fluctuations in LIBOR only on our revolving credit facility. At ~~May~~August 31, 2019, there were no borrowings outstanding on the revolving credit facility.
We have analyzed the potential impact of changes in interest rates on interest income from investments. Assuming that our investments as of ~~May~~August 31, 2019 were to remain constant for a full fiscal year and no actions were taken to alter the existing interest rate terms, a hypothetical change of a 1.0% increase in interest rates would cause a corresponding increase of approximately ~~$2.8~~$3.3 million to our interest income. Conversely, a hypothetical change of a 1.0% decrease in interest rates would cause a corresponding decrease of approximately $2.4 million to our interest income.
Changes in interest rates would have no impact to our current interest and debt financing expense, as all our borrowings except for our credit facility are fixed rate, and our credit facility is currently undrawn.
Although management believes that this measure is indicative of our sensitivity to interest rate changes, it does not adjust for potential changes in credit quality, size and composition of the assets on the statements of assets and liabilities and other business developments that could magnify or diminish our sensitivity to interest rate changes, nor does it account for divergences in LIBOR and the commercial paper rate, which have historically moved in tandem but, in times of unusual credit dislocations, have experienced periods of divergence. Accordingly, no assurances can be given that actual results would not materially differ from the potential outcome simulated by this estimate.
For further information, the following table shows the approximate annualized increase or decrease in the components of net investment income due to hypothetical base rate changes in interest rates, assuming no changes in our investments and borrowings as of ~~May~~August 31, 2019.

Basis
Point
Change
Increase (Decrease)
in Interest
Income (Increase) Decrease
in Interest Expense Increase (Decrease)
in Net Investment
Income Increase (Decrease)
in Net Investment
Income per Share
($ in thousands)
-100 $ (2,362 ) $ —   $ (2,362 ) $ (0.30 )
-50 (1,232 ) —   (1,232 ) (0.16 )
-25 (616 ) —   (616 ) (0.08 )
25 698 —   698 0.09
50 1,408 —   1,408 0.18
100 2,828 —   2,828 0.37
200 5,669 —   5,669 0.73
300 8,510 —   8,510 1.10
400 11,351 —   11,351 1.47
Basis
Point
Change
Increase
(Decrease)
in Interest
Income (Increase)
Decrease
in Interest
Expense Increase
(Decrease) in Net
Investment
Income Increase
(Decrease) in Net
Investment
Income per Share
($ in thousands)
-100 $ (2,362 ) $ —   $ (2,362 ) $ (0.29 )
-50 (1,308 ) —   (1,308 ) (0.16 )
-25 (677 ) —   (677 ) (0.08 )
25 694 —   694 0.09
50 1,496 —   1,496 0.19
100 3,292 —   3,292 0.41
200 6,895 —   6,895 0.86
300 10,498 —   10,498 1.31
400 14,101 —   14,101 1.75
ITEM 4. CONTROLS AND PROCEDURES

(a)
As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and our chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined inRule13a-15(e) and15d-15(e) of ~~and15d-15(e)~~ of the Securities Exchange Act of 1934). Based on that evaluation, our chief executive officer and our chief financial officer have concluded that our current disclosure controls and procedures are effective in facilitating timely decisions regarding required disclosure of any material information relating to us that is required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

(b)
There have been no changes in the Company’s internal control over financial reporting (as defined in Rule13a-15(f) of Exchange Act) that occurred during the quarter ended ~~May~~August 31, 2019 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Neither we nor our wholly-owned subsidiaries, Saratoga Investment Funding LLC, Saratoga Investment Corp. SBIC LP and Saratoga Investment Corp. SBIC II LP, are currently subject to any material legal proceedings.
Item 1A. Risk Factors
In addition to information set forth in this report, you should carefully consider the “Risk Factors” discussed in our most recent Annual Report on Form10-K filed with the SEC, which could materially affect our business, financial condition and/or operating results. Other than as set forth below, there have been no material changes during the ~~three~~six months ended ~~May~~August 31, 2019 to the risk factors discussed in “Item 1A. Risk Factors” of our Annual Report on Form10-K. Additional risks or uncertainties not currently known to us or that we currently deem to be immaterial also may materially affect our business, financial condition and/or operating results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Not applicable.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Not applicable.
ITEM 6. EXHIBITS
Listed below are the exhibits which are filed as part of this report (according to the number assigned to them in Item 601 of RegulationS-K):
EXHIBIT INDEX

Exhibit
Number

Description
  3.1(a) Articles of Incorporation of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Form10-Q for the quarterly period ended May 31, 2007).
  3.1(b) Articles of Amendment of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed August 3, 2010).
  3.1(c) Articles of Amendment of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed August 13, 2010).
  3.2 Second Amended and Restated Bylaws of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on June 14, 2011).
  4.1 Specimen certificate of Saratoga Investment Corp.’s common stock, par value $0.001 per share. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on FormN-2, FileNo. 333-169135, filed on September 1, 2010).
  4.2 Registration Rights Agreement dated July 30, 2010 between GSC Investment Corp., GSC CDO III L.L.C., and the investors party thereto (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on August 3, 2010).
  4.3 Dividend Reinvestment Plan (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on September 24, 2014).
  4.4 Form of Indenture by and between the Company and U.S. Bank National Association, as trustee (incorporated by reference to Saratoga Investment Corp.’sPre-Effective Amendment No. 2 to the Registration Statement on FormN-2, FileNo. 333-186323 filed April 30, 2013).
  4.5 Form of Second Supplemental Indenture between the Company and U.S. Bank National Association (incorporated by reference to Amendment No. 2 to Saratoga Investment Corp.’s Registration Statement on FormN-2, FileNo. 333-214182, filed on December 12, 2016).
  4.6 Form of Global Note (incorporated by reference to Exhibit 4.5 hereto, and Exhibit A therein).
  4.7 Form of Third Supplemental Indenture between the Company and U.S. Bank National Association (incorporated by reference to Post-Effective Amendment No. 9 to the Registrant’s Registration Statement on FormN-2, FileNo. ~~333- 216344,~~333-216344, filed on August 28, 2018).
  4.8 Form of Global Note (incorporated by reference to Exhibit 4.7 hereto, and Exhibit A therein).
  4.9 Form of Articles Supplementary Establishing and Fixing the Rights and Preferences of Preferred Stock (incorporated by reference to Saratoga Investment Corp.’s registration statement on FormN-2Pre-Effective Amendment No. 1, FileNo.333-196526, filed on December 5, 2014).
10.1 Investment Advisory and Management Agreement dated July 30, 2010 between GSC Investment Corp. and Saratoga Investment Advisors, LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on August 3, 2010).
10.2 Custodian Agreement dated March 21, 2007 between GSC Investment LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Form10-Q for the quarterly period ended May 31, 2007).
~~Exhibit~~
~~Number~~
~~Description~~
10.3 Administration Agreement dated July 30, 2010 between GSC Investment Corp. and Saratoga Investment Advisors, LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on August 3, 2010).
10.4 Trademark License Agreement dated July 30, 2010 between Saratoga Investment Advisors, LLC and GSC Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on August 3, 2010).
10.5 Credit, Security and Management Agreement dated July 30, 2010 by and among GSC Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on August 3, 2010).
10.6 Form of Indemnification Agreement between Saratoga Investment Corp. and each officer and director of Saratoga Investment Corp. (incorporated by reference to Amendment No. 2 to Saratoga Investment Corp.’s Registration Statement on FormN-2 filed on January 12, 2007).
Exhibit
Number
Description
10.7    Amendment No. 1 to Credit, Security and Management Agreement dated February 24, 2012 by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on February 29, 2012).
10.8    Amended and Restated Indenture, dated as of November 15, 2016, among Saratoga Investment Corp. CLO2013-1, Ltd., Saratoga Investment Corp. CLO2013-1, Inc. and U.S. Bank National Association. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on FormN-2, FileNo. 333-216344, filed on February 28, 2017).
10.9    Amended and Restated Collateral Management Agreement, dated October 17, 2013, by and between Saratoga Investment Corp. and Saratoga Investment Corp. CLO2013-1, Ltd. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on FormN-2, FileNo. 333-196526, filed on December 5, 2014).
10.10    Amendment No. 2 to Credit, Security and Management Agreement dated September 17, 2014 by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on September 18, 2014).
10.11    Amendment No. 3 to Credit, Security and Management Agreement, dated May 18, 2017, by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report onForm ~~8- K~~8-K filed on May 18, 2017).
10.12    Equity Distribution Agreement dated March 16, 2017, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc. and BB&T Capital Markets, a division of BB&T Securities, LLC (incorporated by reference to Saratoga Investment Corp.’s Post-Effective Amendment No. 1 to the Registration Statement on FormN-2, FileNo. 333-216344, filed on March 16, 2017).
10.13    Amendment No. 1 to the Equity Distribution Agreement dated October 12, 2017, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and FBR Capital Markets & Co. (incorporated by reference to Saratoga Investment Corp.’s ~~Post- Effective~~Post-Effective Amendment No. 2 to the Registration Statement on FormN-2, FileNo. 333-216344, filed on October 12, 2017).
~~Exhibit~~
~~Number~~
~~Description~~
10.14    Amendment No. 2 to the Equity Distribution Agreement dated January 11, 2018, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and FBR Capital Markets & Co. (incorporated by reference to Saratoga Investment Corp.’s ~~Post- Effective~~Post-Effective Amendment No. 3 to Saratoga Investment Corp.’s Registration Statement on FormN-2, FileNo. 333-216344, filed on January 11, 2018).
10.15    Amendment No. 3 to the Equity Distribution Agreement dated October 16, 2018, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and B. Riley FBR, Inc. (incorporated by reference to Post-Effective Amendment No. 1 to the registrant’s Registration Statement on FormN-2, FileNo. 333-227116, filed on October 16, 2018).
10.16 Amendment No. 4 to the Equity Distribution Agreement dated July 11, 2019, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and B. Riley FBR, Inc. (incorporated by reference to Post-Effective Amendment No. 5 to the registrant’s Registration Statement on FormN-2, FileNo. 333-227116, filed on July 12, 2019).
11    Computation of Per Share Earnings (included in Note 11 to the consolidated financial statements contained in this report).
14    Code of Ethics of the Company adopted under Rule17j-1 (incorporated by reference to Amendment ~~No.7~~No. 7 to Saratoga Investment Corp.’s Registration Statement on FormN-2, FileNo. 333-138051, filed on March 22, 2007).
21.1    List of Subsidiaries and jurisdiction of incorporation/organization: Saratoga Investment Funding LLC—Delaware; Saratoga Investment Corp. SBIC, LP—Delaware; Saratoga Investment Corp. SBIC II LP— Delaware; and Saratoga Investment Corp. GP, LLC—Delaware.
31.1*    Certification of Chief Executive Officer Pursuant toRule13a-14(a) under ~~under~~ the Securities Exchange Act of 1934
31.2*    Certification of Chief Financial Officer Pursuant toRule13a-14(a) under ~~under~~ the Securities Exchange Act of 1934
32.1*    Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)
32.2*    Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

*
Filed herewith
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SARATOGA INVESTMENT CORP.
Date: ~~July 10,~~October 9, 2019
By:

/s/ CHRISTIAN L. OBERBECK
Christian L. Oberbeck
Chief Executive Officer
~~Chief Executive Officer~~
By:

/s/ HENRI J. STEENKAMP
Henri J. Steenkamp
Chief Financial Officer and Chief Compliance Officer

~~114~~72


	Investments at Amortized Cost		Amortized Cost Percentage of Total Portfolio			Investments at Fair Value		Fair Value Percentage of Total Portfolio
First lien term loans	$	202,328		50.3	%	$	202,846		50.5	%
Second lien term loans		127,793		31.8			125,786		31.3
Unsecured term loans		2,217		0.6			2,100		0.5
Structured finance securities		33,516		8.3			35,328		8.8
Equity interests		36,062		9.0			35,960		8.9

Total	$	401,916		100.0	%	$	402,020		100.0	%


Issuer Name	Industry	Asset Name	Asset Type	Reference Rate/Spread				LIBOR Floor			Current Rate (All In)			Maturity Date		Principal/ Number of Shares		Cost		Fair Value
Education Management II LLC	Services: Consumer	Education Management II A-1 Preferred Shares	Equity		-												6,692	$	669,214	$	134
Education Management II LLC	Services: Consumer	Education Management IIA-2 Preferred Shares	Equity		-												18,975		1,897,538		17
24 Hour Fitness Worldwide Inc.	Services: Consumer	Term Loan (5/18)	Loan		1M USD LIBOR+	3.50	%		0.00	%		5.93	%		5/30/2025	$	2,982,487		2,971,392		2,965,100
ABB Con-Cise Optical Group LLC	Healthcare & Pharmaceuticals	Term Loan B	Loan		3M USD LIBOR+	5.00	%		1.00	%		7.50	%		6/15/2023		2,098,066		2,074,926		1,966,936
Achilles Acquisition LLC	Banking Finance Insurance & Real Estate	Term Loan (09/18)	Loan		1M USD LIBOR+	4.00	%		0.00	%		6.43	%		10/13/2025		3,000,000		2,993,593		2,992,500
Acosta Inc.	Media: Advertising Printing & Publishing	Term Loan B (1st Lien)	Loan		1M USD LIBOR+	3.25	%		1.00	%		5.68	%		9/27/2021		1,910,400		1,904,699		788,040
ADMI Corp.	Services: Consumer	Term Loan B	Loan		1M USD LIBOR+	2.75	%		0.00	%		5.18	%		4/30/2025		1,985,000		1,976,388		1,956,873
Advantage Sales & Marketing Inc.	Services: Business	First Lien Term Loan	Loan		1M USD LIBOR+	3.25	%		1.00	%		5.68	%		7/23/2021		2,389,899		2,388,562		2,067,574
Advantage Sales & Marketing Inc.	Services: Business	Term Loan B Incremental	Loan		1M USD LIBOR+	3.25	%		1.00	%		5.68	%		7/23/2021		493,719		487,181		424,909
Aegis Toxicology Sciences Corporation	Healthcare & Pharmaceuticals	Term Loan	Loan		3M USD LIBOR+	5.50	%		1.00	%		8.00	%		5/9/2025		3,980,000		3,946,077		3,831,984
Agiliti Health Inc.	Healthcare & Pharmaceuticals	Term Loan (1/19)	Loan		1M USD LIBOR+	3.00	%		0.00	%		5.43	%		1/5/2026		500,000		500,000		500,000
Agrofresh Inc.	Beverage Food & Tobacco	Term Loan	Loan		6M USD LIBOR+	4.75	%		1.00	%		7.27	%		7/30/2021		2,912,180		2,908,470		2,824,814
AI Mistral (Luxembourg) Subco Sarl	High Tech Industries	Term Loan	Loan		1M USD LIBOR+	3.00	%		1.00	%		5.43	%		3/11/2024		490,000		490,000		426,300
AIS Holdco LLC	Services: Business	Term Loan	Loan		3M USD LIBOR+	5.00	%		0.00	%		7.50	%		8/15/2025		2,468,750		2,457,800		2,271,250
Akorn Inc.	Healthcare & Pharmaceuticals	Term Loan B	Loan		1M USD LIBOR+	7.00	%		1.00	%		9.43	%		4/16/2021		398,255		397,752		371,624
Albertson’s LLC	Retail	Term Loan B7	Loan		1M USD LIBOR+	3.00	%		0.75	%		5.43	%		11/17/2025		4,141,132		4,130,851		4,113,717
Alchemy US Holdco 1 LLC	Metals & Mining	Term Loan	Loan		1M USD LIBOR+	5.50	%		0.00	%		7.93	%		10/10/2025		1,987,500		1,959,956		1,977,562
Alera Group Intermediate Holdings Inc.	Banking Finance Insurance & Real Estate	Term Loan B	Loan		1M USD LIBOR+	4.50	%		0.00	%		6.93	%		8/1/2025		497,500		496,377		498,744
Alion Science and Technology Corporation	Aerospace & Defense	Term Loan B (1st Lien)	Loan		1M USD LIBOR+	4.50	%		1.00	%		6.93	%		8/19/2021		3,626,521		3,620,887		3,626,521


	Number of Shares		Cost		Fair Value
Cash and cash equivalents
U.S. Bank Money Market (b)		8,579,399	$	8,579,399	$	8,579,399

Total cash and cash equivalents		8,579,399	$	8,579,399	$	8,579,399


	May 31, 2019		May 31, 2018
Current
Federal	$	—	$	—
State		—		—

Net current expense		—		—

Deferred
Federal		13,290		624,753
State		9,776		48,483

Net deferred expense		23,066		673,236

Net tax provision	$	23,066	$	673,236


	Total		Payment Due by Period										Payment Due by Period
Long-Term Debt Obligations	Total		Less Than 1 Year		1 - 3 Years		3 - 5 Years		More Than 5 Years		Total		Less Than 1 Year		1 - 3 Years		3 - 5 Years		More Than 5 Years
	($ in thousands)														($ in thousands)
Revolving credit facility	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
SBA debentures		150,000		—		—		50,000		100,000		150,000		—		—		64,000		86,000
2023 Notes		74,451		—		—		74,451		—		74,451		—		—		74,451		—
2025 Notes		60,000		—		—		—		60,000		60,000		—		—		—		60,000

Total Long-Term Debt Obligations	$	284,451	$	—	$	—	$	124,451	$	160,000	$	284,451	$	—	$	—	$	138,451	$	146,000


	Common Stock				Capital in Excess of Par Value			Total Distributable Earnings (Loss)			Net Assets							Capital			Total
	Common Stock
	Shares		Amount											Shares		Amount		of Par Value			Earnings (Loss)			Net Assets
Balance at February 28, 2018		6,257,029	$	6,257	$	188,975,590		$	(45,290,480	)	$	143,691,367			6,257,029	$	6,257	$	188,975,590		$	(45,290,480	)	$	143,691,367
Cumulative effect of the adoption of ASC 606 (Note 2)		—		—		—			(65,300	)		(65,300	)		—		—		—			(65,300	)		(65,300	)

Balance at March 1, 2018		6,257,029		6,257		188,975,590			(45,355,780	)		143,626,067			6,257,029		6,257		188,975,590			(45,355,780	)		143,626,067

Increase (Decrease) from Operations:
Net investment income		—		—		—			3,927,648			3,927,648			—		—		—			3,927,648			3,927,648
Net realized gain (loss) from investments		—		—		—			212,008			212,008			—		—		—			212,008			212,008
Net change in unrealized appreciation (depreciation) on investments		—		—		—			643,205			643,205			—		—		—			643,205			643,205
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments		—		—		—			(940,546	)		(940,546	)		—		—		—			(940,546	)		(940,546	)
Decrease from Shareholder Distributions:
Distributions of investment income—net		—		—		—			(3,128,513	)		(3,128,513	)
Distributions of investment income – net															—		—		—			(3,128,513	)		(3,128,513	)
Capital Share Transactions:
Proceeds from issuance of common stock		—		—		—			—			—			—		—		—			—			—
Stock dividend distribution		25,355		25		504,853			—			504,878			25,355		25		504,853			—			504,878
Repurchases of common stock		—		—		—			—			—			—		—		—			—			—
Offering costs		—		—		—			—			—			—		—		—			—			—

Balance at May 31, 2018		6,282,384		6,282		189,480,443			(44,641,978	)		144,844,747			6,282,384		6,282		189,480,443			(44,641,978	)		144,844,747

Increase (Decrease) from Operations:
Net investment income		—		—		—			5,144,228			5,144,228			—		—		—			5,144,228			5,144,228
Net realized gain (loss) from investments		—		—		—			163			163			—		—		—			163			163
Net change in unrealized appreciation (depreciation) on investments		—		—		—			(2,154,521	)		(2,154,521	)		—		—		—			(2,154,521	)		(2,154,521	)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments		—		—		—			152,546			152,546			—		—		—			152,546			152,546
Decrease from Shareholder Distributions:
Distributions of investment income—net		—		—		—			(3,204,014	)		(3,204,014	)
Distributions of investment income – net															—		—		—			(3,204,014	)		(3,204,014	)
Capital Share Transactions:
Proceeds from issuance of common stock		1,150,000		1,150		28,748,850			—			28,750,000			1,150,000		1,150		28,748,850			—			28,750,000
Stock dividend distribution		21,563		22		511,523			—			511,545			21,563		22		511,523			—			511,545
Repurchases of common stock		—		—		—			—			—			—		—		—			—			—
Offering costs		—		—		(1,386,667	)		—			(1,386,667	)		—		—		(1,386,667	)		—			(1,386,667	)

Balance at August 31, 2018		7,453,947		7,454		217,354,149			(44,703,576	)		172,658,027			7,453,947		7,454		217,354,149			(44,703,576	)		172,658,027

Increase (Decrease) from Operations:
Net investment income															—		—		—			5,138,941			5,138,941
Net realized gain (loss) from investments															—		—		—			(67,164	)		(67,164	)
Net change in unrealized appreciation (depreciation) on investments															—		—		—			(1,031,113	)		(1,031,113	)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments															—		—		—			(371,581	)		(371,581	)
Decrease from Shareholder Distributions:
Distributions of investment income – net															—		—		—			(3,876,050	)		(3,876,050	)
Capital Share Transactions:
Proceeds from issuance of common stock															10,373		10		241,228			—			241,238
Stock dividend distribution															25,863		26		578,057			—			578,083
Repurchases of common stock															—		—		—			—			—
Offering costs															—		—		(1,290	)		—			(1,290	)

Balance at November 30, 2018															7,490,183		7,490		218,172,144			(44,910,543	)		173,269,091

Increase (Decrease) from Operations:
Net investment income															—		—		—			4,091,392			4,091,392
Net realized gain (loss) from investments															—		—		—			4,729,298			4,729,298
Net change in unrealized appreciation (depreciation) on investments															—		—		—			(357,880	)		(357,880	)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments															—		—		—			(607,254	)		(607,254	)
Decrease from Shareholder Distributions:
Distributions of investment income – net															—		—		—			(3,980,011	)		(3,980,011	)
Capital Share Transactions:
Proceeds from issuance of common stock															136,176		136		3,158,783			—			3,158,919
Stock dividend distribution															30,797		31		581,356			—			581,387
Repurchases of common stock															—		—		—			—			—
Offering costs															—		—		(9,755	)		—			(9,755	)
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles															—		—		(18,349,728	)		18,349,728			—

Balance at February 28, 2019															7,657,156	$	7,657	$	203,552,800		$	(22,685,270	)	$	180,875,187

Increase (Decrease) from Operations:
Net investment income															—		—		—			3,680,788			3,680,788
Net realized gain (loss) from investments															—		—		—			—			—
Net change in unrealized appreciation (depreciation) on investments															—		—		—			3,989,130			3,989,130
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments															—		—		—			(20,930	)		(20,930	)
Decrease from Shareholder Distributions:
Distributions of investment income – net															—		—		—			(4,176,132	)		(4,176,132	)
Capital Share Transactions:
Proceeds from issuance of common stock															76,448		77		1,772,557			—			1,772,634
Stock dividend distribution															31,240		31		667,358			—			667,389
Repurchases of common stock															—		—		—			—			—
Offering costs															—		—		(4,365	)		—			(4,365	)

Balance at May 31, 2019															7,764,844	$	7,765	$	205,988,350		$	(19,212,414	)	$	186,783,701

Increase (Decrease) from Operations:
Net investment income															—		—		—			4,956,074			4,956,074
Net realized gain (loss) from investments															—		—		—			1,870,089			1,870,089
Net change in unrealized appreciation (depreciation) on investments															—		—		—			1,457,872			1,457,872
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments															—		—		—			(704,263	)		(704,263	)
Decrease from Shareholder Distributions:
Distributions of investment income – net															—		—		—			(4,336,226	)		(4,336,226	)
Capital Share Transactions:
Proceeds from issuance of common stock															1,371,667		1,371		34,101,012			—			34,102,383
Stock dividend distribution															31,545		32		714,497			—			714,529
Repurchases of common stock															—		—		—			—			—
Offering costs															—		—		(507,592	)		—			(507,592	)

Balance at August 31, 2019															9,168,056	$	9,168	$	240,296,267		$	(15,968,868	)	$	224,336,567


Date Declared	Record Date		Payment Date		Amount Per Share		Total Amount*		Record Date		Payment Date		Amount Per Share		Total Amount*
May 28, 2019										June 13, 2019		June 27, 2019	$	0.55	$	4,336
February 26, 2019		March 14, 2019		March 28, 2019	$	0.54	$	4,176		March 14, 2019		March 28, 2019		0.54		4,176

Total dividends declared					$	0.54	$	4,176					$	1.09	$	8,512


Per share data	May 31, 2019			May 31, 2018
Net asset value at beginning of period	$	23.62		$	22.96
Adoption of ASC 606		—			(0.01	)

Net asset value at beginning of period, as adjusted		23.62			22.95
Net investment income(1)		0.48			0.63
Net realized and unrealized gains and losses on investments(1)		0.51			(0.02	)

Net increase in net assets resulting from operations		0.99			0.61
Distributions declared from net investment income		(0.54	)		(0.50	)

Total distributions to stockholders		(0.54	)		(0.50	)
Dilution(2)		(0.01	)		—

Net asset value at end of period	$	24.06		$	23.06

Net assets at end of period	$	186,783,701		$	144,844,747
Shares outstanding at end of period		7,764,844			6,282,384
Per share market value at end of period	$	24.65		$	22.79
Total return based on market value(3)(4)		9.69	%		12.51	%
Total return based on net asset value(3)(5)		4.42	%		2.96	%
Ratio/Supplemental data:
Ratio of net investment income to average net assets(6)		11.39	%		12.60	%
Expenses:
Ratio of operating expenses to average net assets(7)		6.69	%		7.60	%
Ratio of incentive management fees to average net assets(3)		1.15	%		0.74	%
Ratio of interest and debt financing expenses to average net assets(7)		8.37	%		7.49	%

Ratio of total expenses to average net assets(6)		16.21	%		15.83	%
Portfolio turnover rate(3)(8)		6.63	%		10.26	%
Asset coverage ratio per unit(9)		2,389			2,946
Average market value per unit
Credit Facility(10)		N/A			N/A
SBA Debentures(10)		N/A			N/A
2023 Notes	$	25.78		$	25.71
2025 Notes	$	25.28			N/A


											August 31, 2019					February 28, 2019
											Investments at Fair Value		Percentage of Total Portfolio			Investments at Fair Value		Percentage of Total Portfolio
	May 31, 2019					February 28, 2019
	Investments at Fair Value		Percentage of Total Portfolio			Investments at Fair Value		Percentage of Total Portfolio
	($ in thousands)										($ in thousands)
Banking Finance Insurance & Real Estate	$	75,212		15.1	%	$	74,638		15.0	%	$	70,635		14.5	%	$	74,638		15.0	%
Healthcare & Pharmaceuticals		43,983		8.8			39,242		7.9			39,767		8.2			39,242		7.9
Services: Business		35,698		7.2			36,575		7.3			38,090		7.8			36,575		7.3
High Tech Industries		35,433		7.1			38,886		7.8			30,558		6.3			38,886		7.8
Telecommunications		27,159		5.5			28,156		5.6			28,332		5.8			28,156		5.6
Services: Consumer												27,759		5.7			24,712		5.0
Aerospace & Defense												24,722		5.1			16,836		3.4
Media: Advertising Printing & Publishing		25,975		5.2			31,799		6.4			21,038		4.3			31,799		6.4
Services: Consumer		23,882		4.8			24,712		5.0
Retail		21,470		4.3			23,018		4.6
Aerospace & Defense		21,302		4.3			16,836		3.4
Beverage Food & Tobacco		21,129		4.2			23,436		4.7			20,622		4.2			23,436		4.7
Chemicals Plastics & Rubber		18,869		3.8			15,841		3.2			19,385		4.0			15,841		3.2
Retail												18,271		3.7			23,018		4.6
Hotel Gaming & Leisure		18,106		3.6			15,373		3.1			18,148		3.7			15,373		3.1
Consumer goods:Non-durable		15,435		3.1			15,528		3.1			16,742		3.4			15,528		3.1
Automotive		14,686		3.0			13,373		2.7			14,106		2.9			13,373		2.7
Media: Diversified & Production		13,088		2.6			13,086		2.6			12,992		2.7			13,086		2.6
Containers Packaging & Glass		13,005		2.6			10,033		2.0			12,936		2.7			10,033		2.0
Consumer goods: Durable												10,752		2.2			6,324		1.3
Construction & Building		11,272		2.3			13,293		2.7			10,215		2.1			13,293		2.7
Transportation: Cargo		10,779		2.2			11,137		2.2
Capital Equipment		9,698		2.0			9,638		1.9			9,509		1.9			9,638		1.9
Media: Broadcasting & Subscription		8,990		1.8			10,410		2.1			9,385		1.9			10,410		2.1
Consumer goods: Durable		6,145		1.2			6,324		1.3
Transportation: Cargo												7,966		1.6			11,137		2.2
Utilities: Oil & Gas												4,446		0.9			2,953		0.6
Energy: Oil & Gas												4,121		0.8			763		0.1
Energy: Electricity												3,495		0.7			5,059		1.0
Forest Products & Paper												3,467		0.7			4,555		0.9
Metals & Mining		5,010		1.0			5,048		1.0			3,256		0.7			5,048		1.0
Utilities: Electric												2,873		0.6			2,941		0.6
Transportation: Consumer		4,766		1.0			4,773		1.0			1,931		0.4			4,773		1.0
Forest Products & Paper		4,548		0.9			4,555		0.9
Utilities: Oil & Gas		4,440		0.9			2,953		0.6
Energy: Electricity		3,034		0.6			5,059		1.0
Utilities: Electric		2,939		0.6			2,941		0.6
Wholesale												1,891		0.4			—		0.0
Environmental Industries		985		0.2			979		0.2			502		0.1			979		0.2
Energy: Oil & Gas		697		0.1			763		0.1

Total	$	497,735	$	100.0	%	$	498,405		100.0	%	$	487,912		100.0	%	$	498,405		100.0	%


Six Months ended August 31, 2019
Issuer	Asset Type	Gross Proceeds		Cost		Net Realized Gain
Censis Technologies, Inc.	Equity Interests	$	1,559	$	999	$	560
Fancy Chap, Inc.	First Lien Term Loan		6,000		5,940		60
Fancy Chap, Inc.	Equity Interests		2,175		925		1,250


Six Months ended August 31, 2018
Issuer	Asset Type	Gross Proceeds		Cost		Net Realized Gain (Loss)
Take 5 Oil Change, L.L.C.	Equity Interests	$	319	$	—	$	319
TM Restaurant Group L.L.C.	First Lien Term Loan		11,124		11,231		(107	)


Basis Point Change	Increase (Decrease) in Interest Income			(Increase) Decrease in Interest Expense		Increase (Decrease) in Net Investment Income			Increase (Decrease) in Net Investment Income per Share
	($ in thousands)
-100	$	(2,362	)	$	—	$	(2,362	)	$	(0.30	)
-50		(1,232	)		—		(1,232	)		(0.16	)
-25		(616	)		—		(616	)		(0.08	)
25		698			—		698			0.09
50		1,408			—		1,408			0.18
100		2,828			—		2,828			0.37
200		5,669			—		5,669			0.73
300		8,510			—		8,510			1.10
400		11,351			—		11,351			1.47


Basis Point Change	Increase (Decrease) in Interest Income			(Increase) Decrease in Interest Expense		Increase (Decrease) in Net Investment Income			Increase (Decrease) in Net Investment Income per Share
	($ in thousands)
-100	$	(2,362	)	$	—	$	(2,362	)	$	(0.29	)
-50		(1,308	)		—		(1,308	)		(0.16	)
-25		(677	)		—		(677	)		(0.08	)
25		694			—		694			0.09
50		1,496			—		1,496			0.19
100		3,292			—		3,292			0.41
200		6,895			—		6,895			0.86
300		10,498			—		10,498			1.31
400		14,101			—		14,101			1.75


Exhibit Number		Description

3.1(a)		Articles of Incorporation of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Form10-Q for the quarterly period ended May 31, 2007).

3.1(b)		Articles of Amendment of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed August 3, 2010).

3.1(c)		Articles of Amendment of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed August 13, 2010).

3.2		Second Amended and Restated Bylaws of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on June 14, 2011).

4.1		Specimen certificate of Saratoga Investment Corp.’s common stock, par value $0.001 per share. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on FormN-2, FileNo. 333-169135, filed on September 1, 2010).

4.2		Registration Rights Agreement dated July 30, 2010 between GSC Investment Corp., GSC CDO III L.L.C., and the investors party thereto (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on August 3, 2010).

4.3		Dividend Reinvestment Plan (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on September 24, 2014).

4.4		Form of Indenture by and between the Company and U.S. Bank National Association, as trustee (incorporated by reference to Saratoga Investment Corp.’sPre-Effective Amendment No. 2 to the Registration Statement on FormN-2, FileNo. 333-186323 filed April 30, 2013).

4.5		Form of Second Supplemental Indenture between the Company and U.S. Bank National Association (incorporated by reference to Amendment No. 2 to Saratoga Investment Corp.’s Registration Statement on FormN-2, FileNo. 333-214182, filed on December 12, 2016).

4.6		Form of Global Note (incorporated by reference to Exhibit 4.5 hereto, and Exhibit A therein).

4.7		Form of Third Supplemental Indenture between the Company and U.S. Bank National Association (incorporated by reference to Post-Effective Amendment No. 9 to the Registrant’s Registration Statement on FormN-2, FileNo. ~~333- 216344,~~333-216344, filed on August 28, 2018).

4.8		Form of Global Note (incorporated by reference to Exhibit 4.7 hereto, and Exhibit A therein).

4.9		Form of Articles Supplementary Establishing and Fixing the Rights and Preferences of Preferred Stock (incorporated by reference to Saratoga Investment Corp.’s registration statement on FormN-2Pre-Effective Amendment No. 1, FileNo.333-196526, filed on December 5, 2014).

10.1		Investment Advisory and Management Agreement dated July 30, 2010 between GSC Investment Corp. and Saratoga Investment Advisors, LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on August 3, 2010).

10.2		Custodian Agreement dated March 21, 2007 between GSC Investment LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Form10-Q for the quarterly period ended May 31, 2007).


~~Exhibit~~ ~~Number~~		~~Description~~

10.3		Administration Agreement dated July 30, 2010 between GSC Investment Corp. and Saratoga Investment Advisors, LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on August 3, 2010).

10.4		Trademark License Agreement dated July 30, 2010 between Saratoga Investment Advisors, LLC and GSC Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on August 3, 2010).

10.5		Credit, Security and Management Agreement dated July 30, 2010 by and among GSC Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on August 3, 2010).

10.6		Form of Indemnification Agreement between Saratoga Investment Corp. and each officer and director of Saratoga Investment Corp. (incorporated by reference to Amendment No. 2 to Saratoga Investment Corp.’s Registration Statement on FormN-2 filed on January 12, 2007).


Exhibit Number		Description

10.7		Amendment No. 1 to Credit, Security and Management Agreement dated February 24, 2012 by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on February 29, 2012).

10.8		Amended and Restated Indenture, dated as of November 15, 2016, among Saratoga Investment Corp. CLO2013-1, Ltd., Saratoga Investment Corp. CLO2013-1, Inc. and U.S. Bank National Association. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on FormN-2, FileNo. 333-216344, filed on February 28, 2017).

10.9		Amended and Restated Collateral Management Agreement, dated October 17, 2013, by and between Saratoga Investment Corp. and Saratoga Investment Corp. CLO2013-1, Ltd. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on FormN-2, FileNo. 333-196526, filed on December 5, 2014).

10.10		Amendment No. 2 to Credit, Security and Management Agreement dated September 17, 2014 by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form8-K filed on September 18, 2014).

10.11		Amendment No. 3 to Credit, Security and Management Agreement, dated May 18, 2017, by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report onForm ~~8- K~~8-K filed on May 18, 2017).

10.12		Equity Distribution Agreement dated March 16, 2017, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc. and BB&T Capital Markets, a division of BB&T Securities, LLC (incorporated by reference to Saratoga Investment Corp.’s Post-Effective Amendment No. 1 to the Registration Statement on FormN-2, FileNo. 333-216344, filed on March 16, 2017).

10.13		Amendment No. 1 to the Equity Distribution Agreement dated October 12, 2017, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and FBR Capital Markets & Co. (incorporated by reference to Saratoga Investment Corp.’s ~~Post- Effective~~Post-Effective Amendment No. 2 to the Registration Statement on FormN-2, FileNo. 333-216344, filed on October 12, 2017).


~~Exhibit~~ ~~Number~~		~~Description~~

10.14		Amendment No. 2 to the Equity Distribution Agreement dated January 11, 2018, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and FBR Capital Markets & Co. (incorporated by reference to Saratoga Investment Corp.’s ~~Post- Effective~~Post-Effective Amendment No. 3 to Saratoga Investment Corp.’s Registration Statement on FormN-2, FileNo. 333-216344, filed on January 11, 2018).

10.15		Amendment No. 3 to the Equity Distribution Agreement dated October 16, 2018, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and B. Riley FBR, Inc. (incorporated by reference to Post-Effective Amendment No. 1 to the registrant’s Registration Statement on FormN-2, FileNo. 333-227116, filed on October 16, 2018).

10.16		Amendment No. 4 to the Equity Distribution Agreement dated July 11, 2019, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and B. Riley FBR, Inc. (incorporated by reference to Post-Effective Amendment No. 5 to the registrant’s Registration Statement on FormN-2, FileNo. 333-227116, filed on July 12, 2019).

11		Computation of Per Share Earnings (included in Note 11 to the consolidated financial statements contained in this report).

14		Code of Ethics of the Company adopted under Rule17j-1 (incorporated by reference to Amendment ~~No.7~~No. 7 to Saratoga Investment Corp.’s Registration Statement on FormN-2, FileNo. 333-138051, filed on March 22, 2007).

21.1		List of Subsidiaries and jurisdiction of incorporation/organization: Saratoga Investment Funding LLC—Delaware; Saratoga Investment Corp. SBIC, LP—Delaware; Saratoga Investment Corp. SBIC II LP— Delaware; and Saratoga Investment Corp. GP, LLC—Delaware.

31.1*		Certification of Chief Executive Officer Pursuant toRule13a-14(a) under ~~under~~ the Securities Exchange Act of 1934

31.2*		Certification of Chief Financial Officer Pursuant toRule13a-14(a) under ~~under~~ the Securities Exchange Act of 1934

32.1*		Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

32.2*		Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)


	SARATOGA INVESTMENT CORP.

Date: ~~July 10,~~October 9, 2019	By:	/s/ CHRISTIAN L. OBERBECK
		Christian L. Oberbeck
		Chief Executive Officer
		~~Chief Executive Officer~~


	By:	/s/ HENRI J. STEENKAMP
		Henri J. Steenkamp

	Chief Financial Officer and Chief Compliance Officer

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company