UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

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

For the Quarterly Period Ended August 31,November 30, 2022

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

Commission File No. 814-00732

 

SARATOGA INVESTMENT CORP.

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

6.00% Notes due 2027 SAT The New York Stock Exchange
8.00% Notes due 2027SAJThe New York Stock Exchange

8.125% Notes due 2027

SAY

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 Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ ☒   No ☐

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

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

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

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

The number of outstanding common shares of the registrant as of October 4, 2022January 9, 2023 was 11,900,212.11,890,500.

 

 

 

 

TABLE OF CONTENTS

 

  

Page

PART I. FINANCIAL INFORMATIONFINANCIAL INFORMATION1
   
Item 1.Consolidated Financial Statements1
   
 Consolidated Statements of Assets and Liabilities as of August 31,November 30, 2022 (unaudited) and February 28, 20221
   
 Consolidated Statements of Operations for the three and sixnine months ended August 31,November 30, 2022 (unaudited) and August 31,November 30, 2021 (unaudited)2
   
 Consolidated Statements of Changes in Net Assets for three and sixnine months ended August 31,November 30, 2022 (unaudited) and August 31,November 30, 2021 (unaudited)3
   
 

Consolidated Statements of Cash Flows for the sixnine months ended August 31,November 30, 2022 (unaudited) and August 31,November 30, 2021 (unaudited)

4
   
 Consolidated Schedules of Investments as of August 31,November 30, 2022 (unaudited) and February 28, 202202225
   
 Notes to Consolidated Financial Statements as of August 31,November 30, 2022 (unaudited)1926
   
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations86103
   
Item 3.Quantitative and Qualitative Disclosures About Market Risk125145
   
Item 4.Controls and Procedures126146
   
PART II.  OTHER INFORMATIONOTHER INFORMATION127147
   
Item 1.Legal Proceedings127147
   
Item 1A.Risk Factors127147
   
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds127147
   
Item 3.Defaults Upon Senior Securities127147
   
Item 4.Mine Safety Disclosures127147
   
Item 5.Other Information127147
   
Item 6.Exhibits128148
   
Signatures130150

 

i

PART I. FINANCIAL INFORMATION

 

Item 1. Consolidated Financial Statements

Saratoga Investment Corp.

Saratoga Investment Corp.

Consolidated Statements of Assets and Liabilities

(unaudited)

  November 30, 2022  February 28, 2022 
  (unaudited)    
ASSETS      
Investments at fair value      
Non-control/Non-affiliate investments (amortized cost of $776,943,715 and $654,965,044, respectively) $777,907,062  $668,358,516 
Affiliate investments (amortized cost of $90,180,944 and $46,224,927, respectively)  96,051,664   48,234,124 
Control investments (amortized cost of $119,358,478 and $95,058,356, respectively)  108,075,326   100,974,715 
Total investments at fair value (amortized cost of $986,483,137 and $796,248,327, respectively)  982,034,052   817,567,355 
Cash and cash equivalents  5,672,012   47,257,801 
Cash and cash equivalents, reserve accounts  41,375,630   5,612,541 
Interest receivable (net of reserve of $1,626,140 and $0, respectively)  8,815,596   5,093,561 
Due from affiliate (See Note 7)  -   90,968 
Management fee receivable  363,815   362,549 
Other assets  236,861   254,980 
Current tax receivable  467,632   - 
Total assets $1,038,965,598  $876,239,755 
         
LIABILITIES        
Revolving credit facility $25,000,000  $12,500,000 
Deferred debt financing costs, revolving credit facility  (846,319)  (1,191,115)
SBA debentures payable  242,660,000   185,000,000 
Deferred debt financing costs, SBA debentures payable  (5,560,015)  (4,344,983)
7.00% Notes Payable 2025  12,000,000   - 
Discount on 7.00% notes payable 2025  (334,890)  - 
Deferred debt financing costs, 7.00% notes payable 2025  (44,030)  - 
7.25% Notes Payable 2025  -   43,125,000 
Deferred debt financing costs, 7.25% notes payable 2025  -   (1,078,201)
7.75% Notes Payable 2025  5,000,000   5,000,000 
Deferred debt financing costs, 7.75% notes payable 2025  (143,052)  (184,375)
4.375% Notes Payable 2026  175,000,000   175,000,000 
Premium on 4.375% notes payable 2026  904,529   1,086,013 
Deferred debt financing costs, 4.375% notes payable 2026  (2,760,666)  (3,395,435)
4.35% Notes Payable 2027  75,000,000   75,000,000 
Discount on 4.35% notes payable 2027  (425,218)  (499,263)
Deferred debt financing costs, 4.35% notes payable 2027  (1,463,434)  (1,722,908)
6.25% Notes Payable 2027  15,000,000   15,000,000 
Deferred debt financing costs, 6.25% notes payable 2027  (362,531)  (416,253)
6.00% Notes Payable 2027  105,500,000   - 
Discount on 6.00% notes payable 2027  (167,325)  - 
Deferred debt financing costs, 6.00% notes payable 2027  (3,099,317)  - 
8.00% Notes Payable 2027  46,000,000   - 
Deferred debt financing costs, 8.00% notes payable 2027  (1,693,973)  - 
Base management and incentive fees payable  9,556,891   12,947,025 
Deferred tax liability  2,139,661   1,249,015 
Accounts payable and accrued expenses  1,266,008   799,058 
Current income tax payable  26,836   2,820,036 
Interest and debt fees payable  4,946,725   2,801,621 
Directors fees payable  95,932   70,000 
Due to manager  6,186   263,814 
Excise tax payable  -   630,183 
Total liabilities  703,201,998   520,459,232 
         
Commitments and contingencies (See Note 9)        
         
NET ASSETS        
Common stock, par value $0.001, 100,000,000 common shares authorized, 11,885,479 and 12,131,350 common shares issued and outstanding, respectively  11,885   12,131 
Capital in excess of par value  321,802,386   328,062,246 
Total distributable earnings  13,949,329   27,706,146 
Total net assets  335,763,600   355,780,523 
Total liabilities and net assets $1,038,965,598  $876,239,755 
NET ASSET VALUE PER SHARE $28.25  $29.33 

 

  

August 31,

2022

  February 28,
2022		 
  (unaudited)    
ASSETS      
Investments at fair value      
Non-control/Non-affiliate investments (amortized cost of $776,527,328 and $654,965,044, respectively) $775,408,041  $668,358,516 
Affiliate investments (amortized cost of $80,445,967 and $46,224,927, respectively)  85,623,204   48,234,124 
Control investments (amortized cost of $98,963,250 and $95,058,356, respectively)  93,632,423   100,974,715 
Total investments at fair value (amortized cost of $955,936,545 and $796,248,327, respectively)  954,663,668   817,567,355 
Cash and cash equivalents  3,068,165   47,257,801 
Cash and cash equivalents, reserve accounts  9,579,226   5,612,541 
Interest receivable (net of reserve of $1,181,633 and $0, respectively)  5,019,691   5,093,561 
Due from affiliate (See Note 7)  17,670   90,968 
Management fee receivable  363,552   362,549 
Other assets  255,445   254,980 
Current Tax Receivable  64,638   - 
Total assets $973,032,055  $876,239,755 
         
LIABILITIES        
Revolving credit facility $25,000,000  $12,500,000 
Deferred debt financing costs, revolving credit facility  (960,415)  (1,191,115)
SBA debentures payable  233,660,000   185,000,000 
Deferred debt financing costs, SBA debentures payable  (5,259,305)  (4,344,983)
7.25% Notes Payable 2025  -   43,125,000 
Deferred debt financing costs, 7.25% notes payable 2025  -   (1,078,201)
7.75% Notes Payable 2025  5,000,000   5,000,000 
Deferred debt financing costs, 7.75% notes payable 2025  (156,726)  (184,375)
4.375% Notes Payable 2026  175,000,000   175,000,000 
Premium on 4.375% notes payable 2026  979,272   1,086,013 
Deferred debt financing costs, 4.375% notes payable 2026  (2,970,717)  (3,395,435)
4.35% Notes Payable 2027  75,000,000   75,000,000 
Discount on 4.35% notes payable 2027  (441,527)  (499,263)
Deferred debt financing costs, 4.35% notes payable 2027  (1,549,296)  (1,722,908)
6.25% Notes Payable 2027  15,000,000   15,000,000 
Deferred debt financing costs, 6.25% notes payable 2027  (380,308)  (416,253)
6.00% Notes Payable 2027  105,500,000   - 
Discount on 6.00% notes payable 2027  (174,486)  - 
Deferred debt financing costs, 6.00% notes payable 2027  (3,227,625)  - 
Base management and incentive fees payable  9,529,363   12,947,025 
Deferred tax liability  1,710,315   1,249,015 
Accounts payable and accrued expenses  1,188,574   799,058 
Current income tax payable  -   2,820,036 
Interest and debt fees payable  3,073,477   2,801,621 
Directors fees payable  108,932   70,000 
Due to manager  189,252   263,814 
Excise tax payable  -   630,183 
Total liabilities  635,818,780   520,459,232 
         
Commitments and contingencies (See Note 9)        
         
NET ASSETS        
Common stock, par value $0.001, 100,000,000 common shares authorized, 11,927,238 and 12,131,350 common shares issued and outstanding, respectively  11,927   12,131 
Capital in excess of par value  322,832,986   328,062,246 
Total distributable earnings (deficit)  14,368,362   27,706,146 
Total net assets  337,213,275   355,780,523 
Total liabilities and net assets $973,032,055  $876,239,755 
NET ASSET VALUE PER SHARE $28.27  $29.33 

See accompanying notes to consolidated financial statements.


Saratoga Investment Corp.

Consolidated Statements of Operations

(unaudited)

  For the three months ended  For the nine months ended 
  November 30, 2022  November 30, 2021  November 30, 2022  November 30, 2021 
INVESTMENT INCOME            
Interest from investments            
Interest income:            
Non-control/Non-affiliate investments $19,549,044  $11,152,851  $49,597,660  $33,687,612 
Affiliate investments  1,914,800   1,055,947   4,287,449   2,332,967 
Control investments  1,671,354   1,702,096   4,731,150   5,616,182 
Payment-in-kind interest income:                
Non-control/Non-affiliate investments  87,130   115,724   258,557   1,002,819 
Affiliate investments  191,860   -   221,027   - 
Control investments  102,720   110,737   260,161   298,383 
Total interest from investments  23,516,908   14,137,355   59,356,004   42,937,963 
Interest from cash and cash equivalents  200,258   968   235,410   2,561 
Management fee income  818,254   815,739   2,451,242   2,448,593 
Dividend Income  436,941   537,621   949,758   1,595,119 
Structuring and advisory fee income  553,497   582,500   2,813,311   2,922,625 
Other income  731,166   427,921   983,277   1,852,916 
Total investment income  26,257,024   16,502,104   66,789,002   51,759,777 
                 
OPERATING EXPENSES                
Interest and debt financing expenses  8,449,900   4,842,900   23,243,438   14,367,996 
Base management fees  4,258,821   2,923,676   12,164,989   8,684,681 
Incentive management fees expense  1,531,060   2,417,628   216,915   9,698,327 
Professional fees  558,531   (104,438)  1,344,021   863,376 
Administrator expenses  818,750   750,000   2,341,667   2,156,250 
Insurance  89,187   85,399   266,723   258,035 
Directors fees and expenses  80,000   73,096   300,000   265,596 
General and administrative  525,202   357,727   1,492,063   1,301,603 
Income tax expense (benefit)  68,136   (40,519)  (132,487)  18,082 
Total operating expenses  16,379,587   11,305,469   41,237,329   37,613,946 
NET INVESTMENT INCOME  9,877,437   5,196,635   25,551,673   14,145,831 
                 
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS                
Net realized gain (loss) from investments:                
Non-control/Non-affiliate investments  (740,434)  2,588,468   7,365,913   6,140,073 
Affiliate investments  -   7,328,457   -   7,328,457 
Control investments  -   -   -   (139,867)
Net realized gain (loss) from investments  (740,434)  9,916,925   7,365,913   13,328,663 
Income tax (provision) benefit from realized gain on investments  479,318   (2,447,173)  548,568   (2,896,056)
Net change in unrealized appreciation (depreciation) on investments:                
Non-control/Non-affiliate investments  2,082,634   3,887,216   (12,430,125)  11,593,037 
Affiliate investments  693,483   (7,412,673)  3,861,523   (1,668,686)
Control investments  (5,952,325)  (2,517,159)  (17,199,511)  4,222,150 
Net change in unrealized appreciation (depreciation) on investments  (3,176,208)  (6,042,616)  (25,768,113)  14,146,501 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  (425,848)  2,480,465   (1,017,953)  921,610 
Net realized and unrealized gain (loss) on investments  (3,863,172)  3,907,601   (18,871,585)  25,500,718 
Realized losses on extinguishment of debt  -   (764,123)  (1,204,809)  (2,316,263)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $6,014,265  $8,340,113  $5,475,279  $37,330,286 
                 
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE $0.51  $0.73  $0.46  $3.30 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED  11,893,173   11,450,861   11,989,811   11,312,991 

See accompanying notes to consolidated financial statements.


 

 

Saratoga Investment Corp.

Consolidated Statements of Operations

(unaudited)

  For the three months ended  For the six months ended 
  August 31,
2022		  

August 31,

2021

  

August 31,

2022

  

August 31,

2021

 
INVESTMENT INCOME            
Interest from investments            
Interest income:            
Non-control/Non-affiliate investments $16,197,470  $11,298,024  $30,048,616  $22,534,761 
Affiliate investments  1,322,501   936,508   2,372,649   1,277,020 
Control investments  1,513,666   2,059,101   3,059,796   3,914,086 
Payment-in-kind interest income:                
Non-control/Non-affiliate investments  85,746   710,329   171,427   887,095 
Affiliate investments  29,167   -   29,167   - 
Control investments  84,220   109,971   157,441   187,646 
Total interest from investments  19,232,770   15,113,933   35,839,096   28,800,608 
Interest from cash and cash equivalents  34,435   1,071   35,152   1,593 
Management fee income  817,024   814,622   1,632,988   1,632,854 
Dividend Income*  212,688   658,881   512,817   1,057,498 
Structuring and advisory fee income  1,408,086   1,038,250   2,259,814   2,340,125 
Other income*  147,843   814,926   252,111   1,424,995 
Total investment income  21,852,846   18,441,683   40,531,978   35,257,673 
                 
OPERATING EXPENSES                
Interest and debt financing expenses  7,922,025   5,184,184   14,793,538   9,525,096 
Base management fees  4,104,105   3,002,097   7,906,168   5,761,005 
Incentive management fees expense (benefit)  589,840   2,018,163   (1,314,145)  7,280,699 
Professional fees  368,165   460,753   785,490   967,814 
Administrator expenses  772,917   712,500   1,522,917   1,406,250 
Insurance  90,226   86,318   177,536   172,636 
Directors fees and expenses  110,000   100,500   220,000   192,500 
General and administrative  299,445   453,225   966,861   943,876 
Income tax expense (benefit)  (101,891)  30,682   (200,623)  58,601 
Total operating expenses  14,154,832   12,048,422   24,857,742   26,308,477 
NET INVESTMENT INCOME  7,698,014   6,393,261   15,674,236   8,949,196 
                 
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS                
Net realized gain (loss) from investments:                
Non-control/Non-affiliate investments  7,943,838   1,641,462   8,106,347   3,551,605 
Control investments  -   (139,867)  -   (139,867)
Net realized gain (loss) from investments  7,943,838   1,501,595   8,106,347   3,411,738 
Income tax (provision) benefit from realized gain on investments  -   (448,883)  69,250   (448,883)
Net change in unrealized appreciation (depreciation) on investments:                
Non-control/Non-affiliate investments  (13,878,470)  2,256,932   (14,512,759)  8,772,357 
Affiliate investments  2,600,434   2,681,640   3,168,040   4,677,451 
Control investments  (1,980,420)  (1,562,033)  (11,247,186)  6,739,309 
Net change in unrealized appreciation (depreciation) on investments  (13,258,456)  3,376,539   (22,591,905)  20,189,117 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  (230,154)  (1,328,711)  (592,105)  (1,558,855)
Net realized and unrealized gain (loss) on investments  (5,544,772)  3,100,540   (15,008,413)  21,593,117 
Realized losses on extinguishment of debt  (1,204,809)  (1,552,140)  (1,204,809)  (1,552,140)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $948,433  $7,941,661  $(538,986) $28,990,173 
                 
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE $0.08  $0.71  $(0.04) $2.59 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED  11,963,276   11,175,436   12,037,855   11,172,787 

*Certain prior period amounts have been reclassified to conform to current period presentation.

See accompanying notes to consolidated financial statements.


Saratoga Investment Corp.

Consolidated Statements of Changes in Net Assets

(unaudited)

 

 For the six months ended  For the nine months ended 
 August 31,
2022		  

August 31,

2021

  November 30, 2022  November 30, 2021 
INCREASE (DECREASE) FROM OPERATIONS:          
Net investment income $15,674,236  $8,949,196  $25,551,673  $14,145,831 
Net realized gain from investments  8,106,347   3,411,738   7,365,913   13,328,663 
Realized losses on extinguishment of debt  (1,204,809)  (1,552,140)  (1,204,809)  (2,316,263)
Income tax (provision) benefit from realized gain on investments  69,250   (448,883)  548,568   (2,896,056)
Net change in unrealized appreciation (depreciation) on investments  (22,591,905)  20,189,117   (25,768,113)  14,146,501 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  (592,105)  (1,558,855)  (1,017,953)  921,610 
Net increase (decrease) in net assets resulting from operations  (538,986)  28,990,173   5,475,279   37,330,286 
                
DECREASE FROM SHAREHOLDER DISTRIBUTIONS:                
Total distributions to shareholders  (12,798,798)  (9,709,800)  (19,232,096)  (15,599,129)
Net decrease in net assets from shareholder distributions  (12,798,798)  (9,709,800)  (19,232,096)  (15,599,129)
                
CAPITAL SHARE TRANSACTIONS:                
Proceeds from issuance of common stock  -   157,040   -   15,320,818 
Stock dividend distribution  2,196,868   1,742,614   3,347,802   2,760,278 
Repurchases of common stock  (7,420,421)  (1,252,143)  (9,600,116)  (1,252,143)
Repurchase fees  (5,911)  (992)  (7,792)  (992)
Offering costs  -   (817)  -   (143,143)
Net increase (decrease) in net assets from capital share transactions  (5,229,464)  645,702   (6,260,106)  16,684,818 
Total increase (decrease) in net assets  (18,567,248)  19,926,075   (20,016,923)  38,415,975 
Net assets at beginning of period  355,780,523   304,185,770   355,780,523   304,185,770 
Net assets at end of period $337,213,275  $324,111,845  $335,763,600  $342,601,745 

 

See accompanying notes to consolidated financial statements.

  


 

 

Saratoga Investment Corp.

Saratoga Investment Corp.

Consolidated Statements of Cash Flows

(unaudited)

 

 For the six months ended  For the nine months ended 
 August 31,
2022		  August 31,
2021		  November 30, 2022 November 30, 2021 
Operating activities          
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $(538,986) $28,990,173  $5,475,279 $37,330,286 
ADJUSTMENTS TO RECONCILE NET INCREASE (DECREASE) IN NET ASSETS RESULTING             
FROM OPERATIONS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:             
Payment-in-kind and other adjustments to cost  1,594,054   (1,905,423) 1,374,899 (1,120,081)
Net accretion of discount on investments  (833,939)  (884,936) (1,245,358) (1,368,430)
Amortization of deferred debt financing costs  1,674,315   1,023,062  2,567,903 1,544,478 
Realized losses on extinguishment of debt  1,204,809   1,552,140  1,204,809 2,316,263 
Income tax expense (benefit)  (269,873)  30,964  (681,055) 18,082 
Net realized (gain) loss from investments  (8,106,347)  (3,411,738) (7,365,913) (13,328,663)
Net change in unrealized (appreciation) depreciation on investments  22,591,905   (20,189,117) 25,768,113 (14,146,501)
Net change in provision for deferred taxes on unrealized appreciation (depreciation) on investments  592,105   1,558,855  1,017,953 (921,610)
Proceeds from sales and repayments of investments  105,173,099   149,787,188  162,090,516 216,236,729 
Purchases of investments  (257,515,083)  (235,180,617) (345,088,953) (293,753,351)
(Increase) decrease in operating assets:             
Interest receivable  73,870   (891,097) (3,722,035) (343,168)
Due from affiliate  73,298   2,719,000  90,968 2,719,000 
Management and incentive fee receivable  (1,003)  (329,730) (1,266) (330,071)
Tax receivable  64,638   - 
Other assets  (465)  (60,140) 18,119 (54,299)
Deferred tax asset (467,632) - 
Increase (decrease) in operating liabilities:             
Base management and incentive fees payable  (3,417,662)  4,868,310  (3,390,134) 5,524,592 
Accounts payable and accrued expenses  389,516   1,010,580  466,950 210,809 
Tax receivable - - 
Current tax payable  (2,820,036)  -  (2,793,200) 2,833,988 
Interest and debt fees payable  271,856   (177,519) 2,145,104 450,550 
Directors fees payable  38,932   (70,500) 25,932 (70,500)
Excise tax payable  (630,183)  (691,672) (630,183) (691,672)
Due to manager  (74,562)  29,675   (257,628)  10,887 
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES  (140,465,742)  (72,222,542)  (162,929,180)  (56,932,682)
             
Financing activities             
Borrowings on debt  79,500,000   87,500,000  105,500,000 135,000,000 
Paydowns on debt  (18,340,000)  (73,500,000) (35,340,000) (73,500,000)
Issuance of notes  105,500,000   175,000,000  163,500,000 175,000,000 
Repayments of notes  (43,125,000)  (60,000,000) (43,125,000) (60,000,000)
Payments of deferred debt financing costs  (5,087,947)  (5,569,027) (7,400,318) (7,768,038)
Discount on debt issuance, 6.000% notes 2027  (176,000)  -  (176,000) - 
Discount on debt issuance, 7.000% notes 2025 (360,000) - 
Premium on debt issuance, 4.375% notes 2026  -   1,250,000  - 1,250,000 
Proceeds from issuance of common stock  -   157,040  - 15,320,818 
Payments of cash dividends  (10,601,930)  (7,967,186) (15,884,294) (12,838,851)
Repurchases of common stock  (7,420,421)  (1,252,143) (9,600,116) (1,252,143)
Repurchases fees  (5,911)  (992) (7,792) (992)
Payments of offering costs  -   (817)  -  (124,714)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES  100,242,791   115,616,875   157,106,480  171,086,080 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS  (40,222,951)  43,394,333  (5,822,700) 114,153,398 
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD  52,870,342   29,915,074   52,870,342  29,915,074 
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD $12,647,391  $73,309,407  $47,047,642 $144,068,472 
             
Supplemental information:             
Interest paid during the period $12,691,530  $8,679,552  $18,374,593 $12,372,967 
Cash paid for taxes  2,759,376   703,158  2,770,984 727,469 
Supplemental non-cash information:             
Payment-in-kind interest income and other adjustments to cost  (1,799,723)  1,905,423  1,374,899 1,120,081 
Net accretion of discount on investments  833,939   884,936  1,245,358 1,368,430 
Amortization of deferred debt financing costs  1,674,315   1,023,062  2,567,903 1,544,478 
Stock dividend distribution  2,196,868   1,742,614  3,347,802 2,760,278 

See accompanying notes to consolidated financial statements.


 

Saratoga Investment Corp.

Saratoga Investment Corp.

Consolidated Schedule of Investments

August 31,November 30, 2022

(unaudited)

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Non-control/Non-affiliate investments - 228.1% (b)                  
Altvia MidCo, LLC. Alternative Investment Management Software First Lien Term Loan
(3M USD TERM SOFR+8.50%), 10.28% Cash, 7/18/2027		 7/18/2022 $8,000,000  $7,921,109  $7,920,000   2.3%
Altvia MidCo, LLC. (h) Alternative Investment Management Software Series A-1 Preferred Shares 7/18/2022  2,000,000   2,000,000   2,000,000   0.6%
    Total Alternative Investment Management Software        9,921,109   9,920,000   2.9%
Targus Holdings, Inc. (h) Consumer Products Common Stock 12/31/2009  210,456   1,589,630   921,256   0.3%
    Total Consumer Products        1,589,630   921,256   0.3%
Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020  1,050   475,698   3,652,653   1.1%
    Total Corporate Education Software        475,698   3,652,653   1.1%
GreyHeller LLC (h) Cyber Security Common Stock 11/10/2021  7,857,689   1,906,275   2,418,060   0.7%
    Total Cyber Security        1,906,275   2,418,060   0.7%
New England Dental Partners Dental Practice Management First Lien Term Loan
(3M USD LIBOR+8.00%), 11.08% Cash, 11/25/2025		 11/25/2020 $6,555,000   6,509,311   6,495,350   1.9%
New England Dental Partners (j) Dental Practice Management Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 11.08% Cash, 11/25/2025		 11/25/2020 $2,150,000   2,134,838   2,130,435   0.6%
    Total Dental Practice Management        8,644,149   8,625,785   2.5%
Exigo, LLC Direct Selling Software First Lien Term Loan
(1M USD LIBOR+5.75%), 8.31% Cash, 3/16/2027		 3/16/2022 $24,937,500   24,737,201   24,688,125   7.3%
Exigo, LLC (j) Direct Selling Software Delayed Draw Term Loan
(1M USD LIBOR+5.75%), 8.31% Cash, 3/16/2027		 3/16/2022 $-   -   -   0.0%
Exigo, LLC (j) Direct Selling Software Revolving Credit Facility
(1M USD LIBOR+5.75%), 8.31% Cash, 3/16/2027		 3/16/2022 $208,334   208,333   206,250   0.1%
Exigo, LLC (h), (i) Direct Selling Software Common Units 3/16/2022  1,041,667   1,041,667   1,041,667   0.3%
    Total Direct Selling Software        25,987,201   25,936,042   7.7%
C2 Educational Systems Education Services First Lien Term Loan
(3M USD LIBOR+8.50%), 11.58% Cash, 5/31/2023		 5/31/2017 $18,500,000   18,489,014   18,524,050   5.5%
C2 Education Systems, Inc. (h) Education Services Series A-1 Preferred Stock 5/18/2021  3,127   499,904   636,732   0.2%
Zollege PBC Education Services First Lien Term Loan
(3M USD LIBOR+5.50%), 8.58% Cash, 5/11/2026		 5/11/2021 $16,000,000   15,888,280   14,675,200   4.4%
Zollege PBC (j) Education Services Delayed Draw Term Loan
(3M USD LIBOR+5.50%), 8.58% Cash, 5/11/2026		 5/11/2021 $500,000   496,314   375,800   0.1%
Zollege PBC (h) Education Services Class A Units 5/11/2021  250,000   250,000   160,160   0.0%
    Total Education Services        35,623,512   34,371,942   10.2%
Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018  3,068   3,969,291   7,773,428   2.3%
GoReact Education Software First Lien Term Loan
(3M USD LIBOR+7.50%), 10.58% Cash, 1/17/2025		 1/17/2020 $8,000,000   7,932,329   7,832,000   2.3%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  %  of
Net Assets		 
Non-control/Non-affiliate investments - 231.7% (b)                  
Altvia MidCo, LLC. Alternative Investment Management Software First Lien Term Loan (3M USD TERM SOFR+8.50%), 12.91% Cash, 7/18/2027 7/18/2022 $8,000,000   7,924,459  $7,920,000   2.4%
Altvia MidCo, LLC. (h) Alternative Investment Management Software Series A-1 Preferred Shares 7/18/2022 $2,000,000   2,000,000   2,000,000   0.6%
   Total Alternative Investment Management Software        9,924,459   9,920,000   3.0%
Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020  1,050   475,698   3,723,862   1.1%
   Total Corporate Education Software        475,698   3,723,862   1.1%
GreyHeller LLC (h) Cyber Security Common Stock 11/10/2021  7,857,689   1,906,275   2,484,154   0.7%
   Total Cyber Security        1,906,275   2,484,154   0.7%
New England Dental Partners Dental Practice Management First Lien Term Loan (3M USD LIBOR+8.00%), 12.78% Cash, 11/25/2025 11/25/2020 $6,555,000   6,511,617   6,547,134   1.9%
New England Dental Partners Dental Practice Management Delayed Draw Term Loan (3M USD LIBOR+8.00%), 12.78% Cash, 11/25/2025 11/25/2020 $4,650,000   4,625,008   4,644,420   1.4%
   Total Dental Practice Management        11,136,625   11,191,554   3.3%
Exigo, LLC (d) Direct Selling Software First Lien Term Loan (1M USD LIBOR+5.75%), 9.89% Cash, 3/16/2027 3/16/2022 $24,875,000   24,682,800   24,484,463   7.3%
Exigo, LLC (j) Direct Selling Software Delayed Draw Term Loan (1M USD LIBOR+5.75%), 9.89% Cash, 3/16/2027 3/16/2022 $-   -   (65,417)  0.0%
Exigo, LLC (j) Direct Selling Software Revolving Credit Facility (1M USD LIBOR+5.75%), 9.89% Cash, 3/16/2027 3/16/2022 $208,333   208,333   191,979   0.1%
Exigo, LLC (h), (i) Direct Selling Software Common Units 3/16/2022  1,041,667   1,041,667   1,101,027   0.3%
   Total Direct Selling Software        25,932,800   25,712,052   7.7%

 


 

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
GoReact (j) Education Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 10.58% Cash, 1/17/2025		 1/18/2022 $2,000,000   2,000,000   1,947,500   0.6%
Identity Automation Systems (d) Education Software First Lien Term Loan
(3M USD LIBOR+9.24%), 12.32% Cash, 5/8/2024		 8/25/2014 $16,722,500   16,722,500   16,449,923   4.9%
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014  232,616   232,616   320,090   0.1%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020  43,715   171,571   208,993   0.1%
Ready Education Education Software First Lien Term Loan
(3M USD TERM SOFR+6.00%), 8.00% Cash, 8/5/2027		 8/5/2022 $27,000,000   26,731,232   26,730,000   7.9%
    Total Education Software        57,759,539   61,261,934   18.2%
TG Pressure Washing Holdings, LLC (h) Facilities Maintenance Preferred Equity 8/12/2019  488,148   488,148   617,415   0.2%
    Total Facilities Maintenance        488,148   617,415   0.2%
Davisware, LLC Field Service Management First Lien Term Loan
(3M USD LIBOR+7.00%), 10.08% Cash, 7/31/2024		 9/6/2019 $6,000,000   5,963,845   5,923,200   1.8%
Davisware, LLC (j) Field Service Management Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 10.08% Cash, 7/31/2024		 9/6/2019 $977,790   975,981   965,274   0.3%
    Total Field Service Management        6,939,826   6,888,474   2.1%
GDS Software Holdings, LLC Financial Services First Lien Term Loan
(3M USD LIBOR+7.00%), 10.08% Cash, 12/30/2026		 12/30/2021 $22,713,926   22,588,227   22,232,391   6.6%
GDS Software Holdings, LLC (j) Financial Services Delayed Draw Term loan
(3M USD LIBOR+7.00%), 10.08% Cash, 12/30/2026		 12/30/2021 $2,250,000   2,229,203   2,180,335   0.6%
GDS Software Holdings, LLC  (h) Financial Services Common Stock Class A Units 8/23/2018  250,000   250,000   493,097   0.1%
    Total Financial Services        25,067,430   24,905,823   7.3%
Ascend Software, LLC Financial Services Software First Lien Term Loan
(3M USD LIBOR+7.50%), 10.58% Cash, 12/15/2026		 12/15/2021 $6,000,000   5,946,906   5,875,200   1.7%
Ascend Software, LLC (j) Financial Services Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 10.58% Cash, 12/15/2026		 12/15/2021 $2,300,000   2,277,882   2,164,800   0.6%
    Total Financial Services Software        8,224,788   8,040,000   2.3%
Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock 1/15/2016  5,000   380,353   584,570   0.2%
    Total Healthcare Products Manufacturing        380,353   584,570   0.2%
Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018 $400,000   400,000   1,168,701   0.3%
ComForCare Health Care (d) Healthcare Services First Lien Term Loan
(3M USD LIBOR+6.25%), 9.33% Cash, 1/31/2025		 1/31/2017 $25,000,000   24,913,338   25,000,000   7.4%
    Total Healthcare Services        25,313,338   26,168,701   7.7%
TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019  2,487   2,816,693   4,085,490   1.2%
HemaTerra Holding Company, LLC (d) Healthcare Software First Lien Term Loan
(3M USD LIBOR+8.25%), 11.33% Cash, 1/31/2026		 4/15/2019 $35,820,000   35,558,270   35,447,472   10.5%
HemaTerra Holding Company, LLC (d) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+8.25%), 11.33% Cash, 1/31/2026		 4/15/2019 $13,930,000   13,851,039   13,785,128   4.1%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  %  of
Net Assets		 
C2 Educational Systems (d) Education Services First Lien Term Loan (3M USD LIBOR+8.50%), 13.28% Cash, 5/31/2023 5/31/2017 $18,500,000   18,492,604   18,524,050   5.5%
C2 Education Systems, Inc. (h) Education Services Series A-1 Preferred Stock 5/18/2021  3,127   499,904   603,868   0.2%
Zollege PBC Education Services First Lien Term Loan (3M USD LIBOR+5.50%), 10.28% Cash, 5/11/2026 5/11/2021 $16,000,000   15,894,425   14,827,200   4.4%
Zollege PBC (j) Education Services Delayed Draw Term Loan (3M USD LIBOR+5.50%), 10.28% Cash, 5/11/2026 5/11/2021 $500,000   496,563   390,050   0.1%
Zollege PBC (h) Education Services Class A Units 5/11/2021  250,000   250,000   159,497   0.0%
   Total Education Services        35,633,496   34,504,665   10.2%
Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018  3,068   3,969,291   8,742,860   2.6%
GoReact Education Software First Lien Term Loan (3M USD LIBOR+7.50%), 12.28% Cash, 1/17/2025 1/17/2020 $8,000,000   7,938,400   7,795,200   2.3%
GoReact (j) Education Software Delayed Draw Term Loan (3M USD LIBOR+7.50%), 12.28% Cash, 1/17/2025 1/18/2022 $1,000,000   1,000,000   961,600   0.3%
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014  232,616   232,616   146,008   0.0%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020  43,715   171,571   213,157   0.1%
Ready Education Education Software First Lien Term Loan (3M USD TERM SOFR+6.00%), 10.41% Cash, 8/5/2027 8/5/2022 $27,000,000   26,737,018   26,730,000   8.0%
   Total Education Software        40,048,896   44,588,825   13.3%
TG Pressure Washing Holdings, LLC (h) Facilities Maintenance Preferred Equity 8/12/2019  488,148   488,148   405,613   0.1%
   Total Facilities Maintenance        488,148   405,613   0.1%
Davisware, LLC Field Service Management First Lien Term Loan (3M USD LIBOR+7.00%), 11.78% Cash, 7/31/2024 9/6/2019 $6,000,000   5,967,251   5,934,600   1.8%
Davisware, LLC (j) Field Service Management Delayed Draw Term Loan (3M USD LIBOR+7.00%), 11.78% Cash, 7/31/2024 9/6/2019 $1,977,790   1,966,562   1,956,232   0.6%
   Total Field Service Management        7,933,813   7,890,832   2.4%

 


 

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Procurement Partners, LLC Healthcare Software First Lien Term Loan
(3M USD LIBOR+5.50%), 8.58% Cash, 11/12/2025		 11/12/2020 $35,125,000   34,860,737   34,274,975   10.2%
Procurement Partners, LLC Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+5.50%), 8.58% Cash, 11/12/2025		 11/12/2020 $4,300,000   4,259,432   4,195,940   1.2%
Procurement Partners Holdings LLC (h) Healthcare Software Class A Units 11/12/2020  550,986   550,986   677,936   0.2%
    Total Healthcare Software        91,897,157   92,466,941   27.4%
Roscoe Medical, Inc. (h) Healthcare Supply Common Stock 3/26/2014  5,081   508,077   -   0.0%
    Total Healthcare Supply        508,077   -   0.0%
Book4Time, Inc. (a), (d) Hospitality/Hotel First Lien Term Loan
(3M USD LIBOR+7.50%), 10.58%, 12/22/2025		 12/22/2020 $3,136,517   3,114,306   3,136,517   0.9%
Book4Time, Inc. (a) Hospitality/Hotel Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 10.58%, 12/22/2025		 12/22/2020 $2,000,000   1,981,430   2,000,000   0.6%
Book4Time, Inc. (a), (h), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020  200,000   156,826   235,040   0.1%
Knowland Group, LLC (h), (k) Hospitality/Hotel Second Lien Term Loan
(3M USD LIBOR+8.00%), 12.08% Cash/1.00% PIK, 5/9/2024		 11/9/2018 $15,878,989   15,878,989   9,711,590   2.9%
Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan
(3M USD LIBOR+8.00%), 11.08% Cash, 9/2/2026		 4/27/2020 $6,000,000   5,955,263   6,000,000   1.8%
Sceptre Hospitality Resources, LLC (j) Hospitality/Hotel Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 11.08% Cash, 9/2/2026		 9/2/2021 $750,000   742,967   750,000   0.2%
    Total Hospitality/Hotel        27,829,781   21,833,147   6.5%
Granite Comfort, LP (d) HVAC Services and Sales First Lien Term Loan
(3M USD LIBOR+7.00%), 10.08% Cash, 11/16/2025		 11/16/2020 $63,000,000   62,445,879   62,710,200   18.6%
Granite Comfort, LP (d), (j) HVAC Services and Sales Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 10.08% Cash, 11/16/2025		 11/16/2020 $2,000,000   1,982,656   1,990,800   0.6%
    Total HVAC Services and Sales        64,428,535   64,701,000   19.2%
Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan
(3M USD LIBOR+6.50%), 9.58% Cash, 3/6/2025		 3/6/2013 $4,186,686   4,186,686   4,186,686   1.2%
Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015  343   -   4,076,544   1.2%
    Total Industrial Products        4,186,686   8,263,230   2.4%
AgencyBloc, LLC Insurance Software First Lien Term Loan
(3M USD BSBY+8.00%), 9.00% Cash, 10/1/2026		 10/1/2021 $12,272,727   12,176,256   12,189,272   3.6%
Panther ParentCo LLC (h) Insurance Software Class A Units 10/1/2021  2,225,000   2,225,000   2,718,154   0.8%
    Total Insurance Software        14,401,256   14,907,426   4.4%
LogicMonitor, Inc. (d) IT Services First Lien Term Loan
(3M USD LIBOR+5.00), 8.08% Cash, 5/17/2023		 3/20/2020 $43,000,000   42,885,490   43,000,000   12.8%
    Total IT Services        42,885,490   43,000,000   12.8%
ActiveProspect, Inc. (j) Lead Management Software First Lien Term Loan
(3M USD LIBOR+6.00%), 9.08% Cash, 8/8/2027		 8/8/2022 $-   -   -   0.0%
ActiveProspect, Inc. Lead Management Software Delayed Draw Term Loan
(3M USD LIBOR+6.00%), 9.08% Cash, 8/8/2027		 8/8/2022 $12,000,000   11,895,886   11,895,600   3.5%
    Total Lead Management Software        11,895,886   11,895,600   3.5%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  %  of
Net Assets		 
B. Riley Financial, Inc. (a), (m) Financial Services Senior Unsecured Loan 6.75% Cash, 5/31/2024 10/18/2022 $165,301   165,301   164,508   0.0%
GDS Software Holdings, LLC Financial Services First Lien Term Loan (3M USD LIBOR+7.00%), 11.78% Cash, 12/30/2026 12/30/2021 $22,713,926   22,592,997   22,277,819   6.6%
GDS Software Holdings, LLC Financial Services Delayed Draw Term Loan (3M USD LIBOR+7.00%), 11.78% Cash, 12/30/2026 12/30/2021 $3,286,074   3,256,113   3,222,981   1.0%
GDS Software Holdings, LLC (h) Financial Services Common Stock Class A Units 8/23/2018  250,000   250,000   510,438   0.2%
   Total Financial Services        26,264,411   26,175,746   7.8%
Ascend Software, LLC Financial Services Software First Lien Term Loan (3M USD LIBOR+7.50%), 12.28% Cash, 12/15/2026 12/15/2021 $6,000,000   5,949,123   5,889,600   1.8%
Ascend Software, LLC (j) Financial Services Software Delayed Draw Term Loan (3M USD LIBOR+7.50%), 12.28% Cash, 12/15/2026 12/15/2021 $2,300,000   2,278,586   2,180,400   0.6%
   Total Financial Services Software        8,227,709   8,070,000   2.4%
Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018  400,000   400,000   1,251,380   0.4%
ComForCare Health Care (d) Healthcare Services First Lien Term Loan (3M USD LIBOR+6.25%), 11.03% Cash, 1/31/2025 1/31/2017 $25,000,000   24,923,185   25,000,000   7.4%
   Total Healthcare Services        25,323,185   26,251,380   7.8%

 


 

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Centerbase, LLC Legal Software First Lien Term Loan
(1M USD TERM SOFR+7.75%), 10.03% Cash, 1/18/2027		 1/18/2022 $21,354,480   21,141,001   20,929,526   6.2%
    Total Legal Software        21,141,001   20,929,526   6.2%
Madison Logic, Inc. (d) Marketing Orchestration Software First Lien Term Loan
(1M USD LIBOR+5.50%), 8.06% Cash, 11/22/2026		 12/10/2021 $28,771,084   28,654,535   28,543,793   8.5%
Madison Logic, Inc. (j) Marketing Orchestration Software Revolving Credit Facility
(1M USD LIBOR+5.50%), 8.06% Cash, 11/22/2026		 12/10/2021 $-   -   -   0.0%
    Total Marketing Orchestration Software        28,654,535   28,543,793   8.5%
inMotionNow, Inc. Marketing Services First Lien Term Loan
(3M USD LIBOR+7.50), 10.58% Cash, 5/15/2024		 5/15/2019 $12,200,000   12,153,315   12,200,000   3.6%
inMotionNow, Inc. (d) Marketing Services Delayed Draw Term Loan
(3M USD LIBOR+7.50)  10.58% Cash, 5/15/2024		 5/15/2019 $5,000,000   4,979,105   5,000,000   1.5%
    Total Marketing Services        17,132,420   17,200,000   5.1%
ARC Health OpCo LLC (d) Mental Healthcare Services First Lien Term Loan
(3M USD TERM SOFR+8.50%), 10.50% Cash, 8/5/2027		 8/5/2022 $6,500,000   6,419,746   6,418,750   1.9%
ARC Health OpCo LLC (d), (j) Mental Healthcare Services Delayed Draw Term Loan (3M USD TERM SOFR+8.50%), 10.50% Cash, 8/5/2027 8/5/2022 $-   -   -   0.0%
ARC Health OpCo LLC (h) Mental Healthcare Services Class A Preferred Shares 8/5/2022  1,851,852   2,000,000   2,000,000   0.6%
    Total Mental Healthcare Services        8,419,746   8,418,750   2.5%
Chronus LLC Mentoring Software First Lien Term Loan
(3M USD LIBOR+5.25),8.33% Cash, 8/26/2026		 8/26/2021 $15,000,000   14,875,946   14,617,500   4.3%
Chronus LLC Mentoring Software First Lien Term Loan
(3M USD LIBOR+6.00),9.08% Cash, 8/26/2026		 8/26/2021 $3,000,000   2,970,276   2,923,500   0.9%
Chronus LLC (h) Mentoring Software Series A Preferred Stock 8/26/2021  3,000   3,000,000   3,396,063   1.0%
    Total Mentoring Software        20,846,222   20,937,063   6.2%
Omatic Software, LLC Non-profit Services First Lien Term Loan
(3M USD LIBOR+8.00%), 12.08% Cash/1.00% PIK, 5/29/2023		 5/29/2018 $10,061,959   10,027,320   9,999,575   3.0%
    Total Non-profit Services        10,027,320   9,999,575   3.0%
Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note
(3M USD LIBOR+8.50%), 11.58% Cash, 12/31/2023		 12/28/2012 $3,300,000   3,300,000   3,237,960   1.0%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests Expires 12/28/2022 12/28/2012  49,318   400,000   390,161   0.1%
    Total Office Supplies        3,700,000   3,628,121   1.1%
Apex Holdings Software Technologies, LLC Payroll Services First Lien Term Loan
(3M USD LIBOR+8.00%), 11.08% Cash, 9/21/2024		 9/21/2016 $15,500,000   15,493,083   15,422,500   4.6%
    Total Payroll Services        15,493,083   15,422,500   4.6%
Buildout, Inc. Real Estate Services First Lien Term Loan
(3M USD LIBOR+7.00%), 10.08% Cash, 7/9/2025		 7/9/2020 $14,000,000   13,908,526   13,827,800   4.1%
Buildout, Inc. Real Estate Services Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 10.08% Cash, 7/9/2025		 2/12/2021 $38,500,000   38,207,942   38,026,450   11.3%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020  1,160   1,205,308   1,250,659   0.4%
    Total Real Estate Services        53,321,776   53,104,909   15.8%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  %  of
Net Assets		 
HemaTerra Holding Company, LLC (d) Healthcare Software First Lien Term Loan (3M USD TERM SOFR+8.25%), 12.66% Cash, 1/31/2026 4/15/2019 $55,623,000   55,201,050   55,578,502   16.6%
HemaTerra Holding Company, LLC Healthcare Software Delayed Draw Term Loan (3M USD TERM SOFR+8.25%), 12.66% Cash, 1/31/2026 4/15/2019 $13,930,000   13,856,418   13,918,856   4.1%
TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019  2,487   2,816,693   4,350,225   1.3%
Procurement Partners, LLC Healthcare Software First Lien Term Loan (3M USD LIBOR+5.50%), 10.28% Cash, 11/12/2025 11/12/2020 $35,125,000   34,878,261   34,355,763   10.2%
Procurement Partners, LLC Healthcare Software Delayed Draw Term Loan (3M USD LIBOR+5.50%), 10.28% Cash, 11/12/2025 11/12/2020 $4,300,000   4,262,142   4,205,830   1.3%
Procurement Partners Holdings LLC (h) Healthcare Software Class A Units 11/12/2020  550,986   550,986   751,911   0.2%
   Total Healthcare Software        111,565,550   113,161,087   33.7%
Roscoe Medical, Inc. (h) Healthcare Supply Common Stock 3/26/2014  5,081   508,077   -   0.0%
   Total Healthcare Supply        508,077   -   0.0%
Book4Time, Inc. (a), (d) Hospitality/Hotel First Lien Term Loan (3M USD LIBOR+7.50%), 12.28% Cash, 12/22/2025 12/22/2020 $3,136,517   3,115,448   3,136,517   0.9%
Book4Time, Inc. (a) Hospitality/Hotel Delayed Draw Term Loan (3M USD LIBOR+7.50%), 12.28% Cash, 12/22/2025 12/22/2020 $2,000,000   1,982,829   2,000,000   0.6%
Book4Time, Inc. (a), (h), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020  200,000   156,826   256,275   0.1%
Knowland Group, LLC (h), (k) Hospitality/Hotel Second Lien Term Loan (3M USD LIBOR+8.00%), 12.78% Cash/1.00% PIK, 5/9/2024 11/9/2018 $15,878,989   15,878,989   9,741,760   2.9%
Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan (3M USD TERM SOFR+7.25%), 11.66% Cash, 9/2/2026 4/27/2020 $23,000,000   22,789,543   22,783,800   6.8%
Sceptre Hospitality Resources, LLC (j) Hospitality/Hotel Delayed Draw Term Loan (3M USD TERM SOFR+7.25%), 11.66% Cash, 9/2/2026 9/2/2021 $-   -   -   0.0%
   Total Hospitality/Hotel        43,923,635   37,918,352   11.3%

 


 

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Archimeds Parent LLC (h) Research Software Class A Common Units 6/27/2022  1,000,000   1,000,000   1,000,000   0.3%
Wellspring Worldwide Inc. Research Software First Lien Term Loan
(3M USD BSBY+7.25%), 8.25% Cash, 6/27/2027		 6/27/2022 $9,600,000   9,495,082   9,493,440   2.8%
    Total Research Software        10,495,082   10,493,440   0 
LFR Chicken LLC Restaurant First Lien Term Loan
(1M USD LIBOR+7.00%), 9.56% Cash, 11/19/2026		 11/19/2021 $12,000,000   11,896,714   11,854,800   3.5%
LFR Chicken LLC (j) Restaurant Delayed Draw Term Loan
(1M USD LIBOR+7.00%), 9.56% Cash, 11/19/2026		 11/19/2021 $9,000,000   8,917,647   8,891,100   2.6%
LFR Chicken LLC (h) Restaurant Series B Preferred Units 11/19/2021  497,183   1,000,000   1,293,887   0.4%
TMAC Acquisition Co., LLC Restaurant Unsecured Term Loan 8.00% PIK, 9/01/2023 3/1/2018 $2,979,312   2,979,312   2,768,516   0.8%
    Total Restaurant        24,793,673   24,808,303   7.3%
Pepper Palace, Inc. (d) Specialty Food Retailer First Lien Term Loan
(3M USD LIBOR+6.25%), 9.33% Cash, 6/30/2026		 6/30/2021 $33,660,000   33,382,690   26,991,954   8.0%
Pepper Palace, Inc. (j) Specialty Food Retailer Delayed Draw Term Loan
(3M USD LIBOR+6.25%), 9.33% Cash, 6/30/2026		 6/30/2021 $-   -   -   0.0%
Pepper Palace, Inc. (j) Specialty Food Retailer Revolving Credit Facility
(3M USD LIBOR+6.25%), 9.33% Cash, 6/30/2026		 6/30/2021 $-   -   -   0.0%
Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest 6/30/2021  1,000,000   1,000,000   -   0.0%
    Total Specialty Food Retailer        34,382,690   26,991,954   8.0%
ArbiterSports, LLC (d) Sports Management First Lien Term Loan
(3M USD LIBOR+6.50%), 9.58% Cash, 2/21/2025		 2/21/2020 $26,000,000   25,872,154   25,565,800   7.6%
ArbiterSports, LLC (d) Sports Management Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 9.58% Cash, 2/21/2025		 2/21/2020 $1,000,000   1,000,000   983,300   0.3%
    Total Sports Management        26,872,154   26,549,100   7.9%
Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014  100,000   100,000   2,061,008   0.6%
    Total Staffing Services        100,000   2,061,008   0.6%
JDXpert Talent Acquisition Software First Lien Term Loan
(3M USD LIBOR+8.50%), 11.58% Cash, 5/2/2027		 5/2/2022 $6,000,000   5,941,228   5,940,000     
JDXpert (j) Talent Acquisition Software Delayed Draw Term Loan
(3M USD LIBOR+8.50%), 11.58% Cash, 5/2/2027		 5/2/2022 $-   -   -     
Jobvite, Inc. (d) Talent Acquisition Software First Lien Term Loan
(3M USD TERM SOFR+8.00%), 9.68% Cash, 8/5/2028		 8/5/2022 $20,000,000   19,852,534   20,000,000   5.9%
    Total Talent Acquisition Software        25,793,762   25,940,000   5.9%
National Waste Partners (d) Waste Services Second Lien Term Loan 10.00% Cash, 11/13/2022 2/13/2017 $9,000,000   9,000,000   9,000,000   2.7%
    Total Waste Services        9,000,000   9,000,000   2.7%
Sub Total Non-control/Non-affiliate investments            776,527,328   775,408,041   228.1%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  %  of
Net Assets		 
Granite Comfort, LP (d) HVAC Services and Sales First Lien Term Loan (3M USD TERM SOFR+8.02%), 12.43% Cash, 11/16/2025 11/16/2020 $43,000,000   42,666,886   42,570,000   12.7%
Granite Comfort, LP (j) HVAC Services and Sales Delayed Draw Term Loan (3M USD TERM SOFR+8.02%), 12.43% Cash, 11/16/2025 11/16/2020 $6,500,000   6,439,613   6,435,000   1.9%
   Total HVAC Services and Sales        49,106,499   49,005,000   14.6%
Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan (3M USD LIBOR+6.50%), 11.28% Cash, 3/6/2025 3/6/2013 $3,477,686   3,477,686  3,477,687    1.0 % 
Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015  343   -   5,612,524   1.7%
   Total Industrial Products        3,477,686   9,090,211   2.7%
AgencyBloc, LLC Insurance Software First Lien Term Loan (1M USD BSBY+8.00%), 11.97% Cash, 10/1/2026 10/1/2021 $13,500,000   13,396,690   13,444,650   4.0%
Panther ParentCo LLC (h) Insurance Software Class A Units 10/1/2021  2,500,000   2,500,000   3,155,741   0.9%
   Total Insurance Software        15,896,690   16,600,391   4.9%
LogicMonitor, Inc. (d) IT Services First Lien Term Loan (3M USD LIBOR+5.00%), 9.78% Cash, 5/17/2023 3/20/2020 $43,000,000   42,913,067   43,000,000   12.8%
   Total IT Services        42,913,067   43,000,000   12.8%
ActiveProspect, Inc. (d) Lead Management Software First Lien Term Loan (3M USD LIBOR+6.00%), 10.78% Cash, 8/8/2027 8/8/2022 $12,000,000   11,899,180   11,895,600   3.5%
ActiveProspect, Inc. (j) Lead Management Software Delayed Draw Term Loan (3M USD LIBOR+6.00%), 10.78% Cash, 8/8/2027 8/8/2022 $-   -   -   0.0%
   Total Lead Management Software        11,899,180   11,895,600   3.5%

 


 

 

Company(1) Industry Investment Interest Rate/
Maturity		 Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Affiliate investments - 20.9% (b)                  
Artemis Wax Corp. (d), (f) Consumer Services Delayed Draw Term Loan
(1M USD LIBOR+9.00%), 11.56% Cash, 5/20/2026		 5/20/2021 $30,000,000   29,748,215   29,925,000   8.9%
Artemis Wax Corp. (f), (j) Consumer Services Delayed Draw Term Loan
(1M USD LIBOR+6.50%), 9.06% Cash, 5/20/2026		 5/19/2022 $18,000,000   17,822,955   17,955,000   5.3%
Artemis Wax Corp. (f), (h) Consumer Services Series B-1 Preferred Stock 5/20/2021  934,463   1,500,000   4,825,352   1.4%
Artemis Wax Corp. (f), (h) Consumer Services Series C Preferred Stock 5/20/2021  5,951   5,951,492   5,951,488   1.8%
    Total Consumer Services        55,022,662   58,656,840   17.4%
ETU Holdings, Inc. (f) Corporate Education Software First Lien Term Loan
(3M USD LIBOR+9.00%), 12.08% Cash, 8/18/2027		 8/18/2022 $7,000,000   6,930,251   6,930,000   2.1%
ETU Holdings, Inc. (f) Corporate Education Software Second Lien Term Loan 15.00% PIK, 2/18/2028 8/18/2022 $5,000,000   4,950,012   4,950,000   1.5%
ETU Holdings, Inc. (f),(h) Corporate Education Software Series A-1 Preferred Stock 8/18/2022  3,000,000   3,000,000   3,000,000   0.9%
    Total Corporate Education Software        14,880,263   14,880,000   4.5%
Axero Holdings, LLC (f) Employee Collaboration Software First Lien Term Loan
(3M USD LIBOR+10.00%), 13.08% Cash, 6/30/2026		 6/30/2021 $5,500,000   5,453,695   5,508,800   1.6%
Axero Holdings, LLC (f) Employee Collaboration Software Delayed Draw Term Loan
(3M USD LIBOR+10.00%), 13.08% Cash, 6/30/2026		 6/30/2021 $1,100,000   1,089,347   1,101,760   0.3%
Axero Holdings, LLC (f), (j) Employee Collaboration Software Revolving Credit Facility
(3M USD LIBOR+10.00%), 13.08% Cash, 6/30/2026		 2/3/2022 $-   -   -   0.0%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series A Preferred Units 6/30/2021  2,000,000   2,000,000   2,350,000   0.7%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series B Preferred Units 6/30/2021  2,000,000   2,000,000   3,125,804   0.9%
    Total Employee Collaboration Software        10,543,042   12,086,364   3.5%
Sub Total Affiliate investments            80,445,967   85,623,204   20.9%
Control investments - 27.7% (b)                      
Netreo Holdings, LLC (g) IT Services First Lien Term Loan
(3M USD LIBOR +6.50%), 11.08% Cash/1.50% PIK 12/31/2025		 7/3/2018 $5,487,916   5,466,713   5,434,135   1.6%
Netreo Holdings, LLC (d), (g) IT Services Delayed Draw Term Loan
(3M USD LIBOR +6.50%), 11.08% Cash/1.50% PIK, 12/31/2025		 5/26/2020 $17,582,671   17,518,802   17,410,361   5.2%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018  4,600,677   8,344,500   17,661,450   5.2%
    Total IT Services        31,330,015   40,505,946   12.0%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities 5.50%, 4/20/2033 1/22/2008 $111,000,000   30,113,859   23,397,375   6.9%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities
(3M USD LIBOR+10.00%), 13.08%, 4/20/2033		 8/9/2021 $9,375,000   9,375,000   8,929,954   2.6%
    Total Structured Finance Securities        39,488,859   32,327,329   9.5%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Unsecured Loan 10.00%, 6/15/2023 2/17/2022 $14,072,188   14,072,188   14,072,188   4.2%
Saratoga Senior Loan Fund I JV, LLC (a), (g) Investment Fund Membership Interest 2/17/2022  14,072,188   14,072,188   6,726,960   2.0%
    Total Investment Fund        28,144,376   20,799,148   6.2%
Sub Total Control investments            98,963,250   93,632,423   27.7%
TOTAL INVESTMENTS - 276.7% (b)           $955,936,545  $954,663,668   276.7%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  %  of
Net Assets		 
Centerbase, LLC Legal Software First Lien Term Loan (1M USD TERM SOFR+7.75%), 11.88% Cash, 1/18/2027 1/18/2022 $21,300,960   21,097,037   20,691,753   6.2%
   Total Legal Software        21,097,037   20,691,753   6.2%
Madison Logic, Inc. (d) Marketing Orchestration Software First Lien Term Loan (1M USD LIBOR+5.50%), 9.64% Cash, 11/22/2026 12/10/2021 $28,698,795   28,586,044   28,675,836   8.5%
Madison Logic, Inc. (j) Marketing Orchestration Software Revolving Credit Facility (1M USD LIBOR+5.50%), 9.64% Cash, 11/22/2026 12/10/2021 $-   -   -   0.0%
   Total Marketing Orchestration Software        28,586,044   28,675,836   8.5%
ARC Health OpCo LLC (d) Mental Healthcare Services First Lien Term Loan (3M USD TERM SOFR+8.49%), 12.90% Cash, 8/5/2027 8/5/2022 $6,500,000   6,422,385   6,418,750   1.9%
ARC Health OpCo LLC (d), (j) Mental Healthcare Services  Delayed Draw Term Loan (3M USD TERM SOFR+8.49%), 12.90% Cash, 8/5/2027  8/5/2022 $7,726,978   7,632,170   7,630,391   2.3%
ARC Health OpCo LLC (h) Mental Healthcare Services Class A Preferred Shares 8/5/2022  2,587,236   2,794,214   2,794,215   0.8%
   Total Mental Healthcare Services        16,848,769   16,843,356   5.0%
Chronus LLC Mentoring Software First Lien Term Loan (3M USD LIBOR+5.25%), 10.03% Cash, 8/26/2026 8/26/2021 $15,000,000   14,880,506   14,874,000   4.4%
Chronus LLC Mentoring Software First Lien Term Loan (3M USD LIBOR+6.00%), 10.78% Cash, 8/26/2026 8/26/2021 $3,000,000   2,971,230   2,974,800   0.9%
Chronus LLC (h) Mentoring Software Series A Preferred Stock 8/26/2021  3,000   3,000,000   3,564,437   1.1%
   Total Mentoring Software        20,851,736   21,413,237   6.4%
Omatic Software, LLC Non-profit Services First Lien Term Loan (3M USD TERM SOFR+8.00%), 12.41% Cash/1.00% PIK, 5/29/2023 5/29/2018 $13,089,665   13,036,832   13,035,998   3.9%
   Total Non-profit Services        13,036,832   13,035,998   3.9%

 


 

 

  Number of Shares  Cost  Fair Value  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 3.8% (b)            
U.S. Bank Money Market (l)  12,647,391  $12,647,391  $12,647,391   3.8%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  12,647,391  $12,647,391  $12,647,391   3.8%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  %  of
Net Assets		 
Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note (3M USD LIBOR+8.50%), 13.28% Cash, 2/31/2023 12/28/2012 $3,300,000   3,300,000   3,249,510   1.0%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests Expires 12/28/2022 12/28/2012  49,318   400,000   354,649   0.1%
   Total Office Supplies        3,700,000   3,604,159   1.1%
Apex Holdings Software Technologies, LLC Payroll Services First Lien Term Loan (3M USD LIBOR+8.00%), 12.78% Cash, 9/21/2024 9/21/2016 $15,500,000   15,493,229   15,489,150   4.6%
   Total Payroll Services        15,493,229   15,489,150   4.6%
Buildout, Inc. Real Estate Services First Lien Term Loan (3M USD LIBOR+7.00%), 11.78% Cash, 7/9/2025 7/9/2020 $14,000,000   13,915,108   13,843,200   4.1%
Buildout, Inc. Real Estate Services Delayed Draw Term Loan (3M USD LIBOR+7.00%), 11.78% Cash, 7/9/2025 2/12/2021 $38,500,000   38,229,236   38,068,800   11.4%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020  1,160   1,205,308   1,307,141   0.4%
   Total Real Estate Services        53,349,652   53,219,141   15.9%
Wellspring Worldwide Inc. Research Software First Lien Term Loan (3M USD BSBY+7.25%), 11.84% Cash, 6/27/2027 6/27/2022 $9,600,000   9,499,135   9,493,440   2.8%
Archimedes Parent LLC (h) Research Software Class A Common Units 6/27/2022  1,000,000   1,000,000   1,000,000   0.3%
   Total Research Software        10,499,135   10,493,440   3.1%
LFR Chicken LLC Restaurant First Lien Term Loan (1M USD LIBOR+7.00%), 11.14% Cash, 11/19/2026 11/19/2021 $12,000,000   11,901,087   11,817,600   3.6%
LFR Chicken LLC (j) Restaurant Delayed Draw Term Loan (1M USD LIBOR+7.00%), 11.14% Cash, 11/19/2026 11/19/2021 $9,000,000   8,922,513   8,863,200   2.6%
LFR Chicken LLC (h) Restaurant Series B Preferred Units 11/19/2021  497,183   1,000,000   1,108,405   0.3%
TMAC Acquisition Co., LLC Restaurant Unsecured Term Loan 8.00% PIK, 9/1/2023 3/1/2018 $2,979,312   2,979,312   2,815,105   0.8%
   Total Restaurant        24,802,912   24,604,310   7.3%

 

(1)Securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and are restricted securities.

(a)Represents an investment that is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, as amended (the 1940 Act”). As of August 31, 2022, non-qualifying assets represent 7.4% of the Company’s portfolio at fair value. As a BDC, the Company generally has to invest at least 70% of its total assets in qualifying assets.

(b)Percentages are based on net assets of $337,213,275 as of August 31, 2022.
(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 8 to the consolidated financial statements).
(e)This investment does not have a stated interest rate that is payable thereon. As a result, the 5.50% 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 1940 Act, this portfolio company is an “affiliate” as we own between 5.0% and 25.0% of the outstanding voting securities. Transactions during the six months ended August 31, 2022 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 (Depreciation) 
Artemis Wax Corp. $17,940,000  $       -  $1,962,230  $            -  $         -  $2,173,891 
Axero Holdings, LLC  1,089,000   -   377,596   -   -   994,412 
ETU Holdins, Inc.  14,880,000   -   61,989   -   -   (263)
Total $33,909,000  $-  $2,401,815  $-  $-  $3,168,040 
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  %  of
Net Assets		 
Pepper Palace, Inc. (d) Specialty Food Retailer First Lien Term Loan (3M USD LIBOR+6.25%), 11.03% Cash, 6/30/2026 6/30/2021 $33,575,000   33,313,811   24,325,088   7.2%
Pepper Palace, Inc. (j) Specialty Food Retailer Delayed Draw Term Loan (3M USD LIBOR+6.25%), 11.03% Cash, 6/30/2026 6/30/2021 $-   -   -   0.0%
Pepper Palace, Inc. (j) Specialty Food Retailer Revolving Credit Facility (3M USD LIBOR+6.25%), 11.03% Cash, 6/30/2026 6/30/2021 $-   -   -   0.0%
Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest 6/30/2021  1,000,000   1,000,000   -   0.0%
   Total Specialty Food Retailer        34,313,811   24,325,088   7.2%
ArbiterSports, LLC (d) Sports Management First Lien Term Loan (3M USD LIBOR+6.50%), 11.28% Cash, 2/21/2025 2/21/2020 $26,000,000   25,882,301   25,810,200   7.7%
ArbiterSports, LLC Sports Management Delayed Draw Term Loan (3M USD LIBOR+6.50%), 11.28% Cash, 2/21/2025 2/21/2020 $1,000,000   1,000,000   992,700   0.3%
   Total Sports Management        26,882,301   26,802,900   8.0%
Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014  100,000   100,000   2,080,370   0.6%
   Total Staffing Services        100,000   2,080,370   0.6%
JDXpert Talent Acquisition Software First Lien Term Loan (3M USD LIBOR+8.50%), 13.28% Cash, 5/2/2027 5/2/2022 $6,000,000   5,943,524   6,039,000   1.9%
JDXpert (j) Talent Acquisition Software Delayed Draw Term Loan (3M USD LIBOR+8.50%), 13.28% Cash, 5/2/2027 5/2/2022 $-   -   -   0.0%
Jobvite, Inc. (d) Talent Acquisition Software First Lien Term Loan (6M USD TERM SOFR+8.00%), 12.70% Cash, 8/5/2028 8/5/2022 $20,000,000   19,852,834   20,000,000   6.0%
   Total Talent Acquisition Software        25,796,358   26,039,000   7.9%
National Waste Partners (d) Waste Services Second Lien Term Loan 10.00% Cash, 11/13/2022 2/13/2017 $9,000,000   9,000,000   9,000,000   2.7%
   Total Waste Services        9,000,000   9,000,000   2.7%
Sub Total Non-control/Non-affiliate investments            776,943,715   777,907,062   231.7%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  %  of
Net Assets		 
Affiliate investments - 28.6% (b)                      
Artemis Wax Corp. (d), (f) Consumer Services Delayed Draw Term Loan (1M USD LIBOR+9.00%), 13.14% Cash, 5/20/2026 5/20/2021 $30,000,000   29,760,680   29,967,000   8.9%
Artemis Wax Corp. (f) Consumer Services Delayed Draw Term Loan (1M USD LIBOR+6.50%), 10.64% Cash, 5/20/2026 5/19/2022 $18,000,000   17,832,599   17,980,200   5.5%
Artemis Wax Corp. (f), (j) Consumer Services Delayed Draw Term Loan (1M USD LIBOR+7.50%), 11.64% Cash, 5/20/2026 5/19/2022 $9,500,000   9,407,532   9,489,550   2.8%
Artemis Wax Corp. (f), (h) Consumer Services Series B-1 Preferred Stock 5/20/2021  934,463   1,500,000   4,977,250   1.5%
Artemis Wax Corp. (f), (h) Consumer Services Series C Preferred Stock 5/20/2021  6,163   6,162,526   6,162,526   1.8%
   Total Consumer Services        64,663,337   68,576,526   20.5%
ETU Holdings, Inc. (f) Corporate Education Software First Lien Term Loan (3M USD LIBOR+9.00%), 13.78% Cash, 8/18/2027 8/18/2022 $7,000,000   6,932,059   6,930,000   2.1%
ETU Holdings, Inc. (f) Corporate Education Software Second Lien Term Loan 15.00% PIK, 2/18/2028 8/18/2022 $5,089,583   5,039,831   5,038,688   1.5%
ETU Holdings, Inc. (f), (h) Corporate Education Software Series A-1 Preferred Stock 8/18/2022  3,000,000   3,000,000   3,000,000   0.9%
   Total Corporate Education Software        14,971,890   14,968,688   4.5%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  %  of
Net Assets		 
Axero Holdings, LLC (f) Employee Collaboration Software First Lien Term Loan (3M USD LIBOR+10.00%), 14.78% Cash, 6/30/2026 6/30/2021 $5,500,000   5,455,829   5,529,150   1.6%
Axero Holdings, LLC (f) Employee Collaboration Software Delayed Draw Term Loan (3M USD LIBOR+10.00%), 14.78% Cash, 6/30/2026 6/30/2021 $1,100,000   1,089,888   1,105,830   0.3%
Axero Holdings, LLC (f), (j) Employee Collaboration Software Revolving Credit Facility (3M USD LIBOR+10.00%), 14.78% Cash, 6/30/2026 2/3/2022 $-   -   -   0.0%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series A Preferred Units 6/30/2021  2,000,000   2,000,000   2,425,000   0.7%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series B Preferred Units 6/30/2021  2,000,000   2,000,000   3,446,470   1.0%
   Total Employee Collaboration Software        10,545,717   12,506,450   3.6%
Sub Total Affiliate investments            90,180,944   96,051,664   28.6%
Control investments - 32.2% (b)                      
Netreo Holdings, LLC (g) IT Services First Lien Term Loan (3M USD LIBOR+6.50%), 11.28% Cash/2.00% PIK, 12/31/2025 7/3/2018 $5,511,426   5,491,258   5,414,976   1.6%
Netreo Holdings, LLC (d), (g), (j) IT Services Delayed Draw Term Loan (3M USD LIBOR+6.50%), 11.28% Cash/2.00% PIK, 12/31/2025 5/26/2020 $19,661,882   19,583,424   19,317,799   5.8%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018  4,600,677   8,344,500   17,661,450   5.3%
   Total IT Services        33,419,182   42,394,225   12.7%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  %  of
Net Assets		 
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities 0.00%, 4/20/2023 1/22/2008 $111,000,000   29,969,356   19,427,844   5.8%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities (3M USD LIBOR+10.00%), 14.78% Cash, 4/20/2023 8/9/2021 $9,375,000   9,375,000   8,501,620   2.5%
Saratoga Investment Corp Senior Loan Fund 2022-1 Ltd Class E Note (a), (g) Structured Finance Securities Other/Structured Finance Securities (3M USD TERM SOFR+8.55%), 12.96% Cash, 10/20/2033 10/28/2022 $12,250,000   11,392,500   10,969,982   3.3%
   Total Structured Finance Securities        50,736,856   38,899,446   11.6%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Unsecured Loan 10.00%, 6/15/2023 2/17/2022 $17,618,954   17,618,954   17,618,954   5.2%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (h) Investment Fund Membership Interest 2/17/2022  17,583,486   17,583,486   9,162,701   2.7%
   Total Investment Fund        35,202,440   26,781,655   7.9%
Sub Total Control investments            119,358,478   108,075,326   32.2%
Total Investments - 292.5%           $986,483,137  $982,034,052   292.5%


  Number of Shares  Cost  Fair Value  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 14.0% (b)            
U.S. Bank Money Market (l)  47,047,642  $47,047,642  $47,047,642   14.0%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  47,047,642  $47,047,642  $47,047,642   14.0%

(1) Securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and are restricted securities.

(a) Represents an investment that is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, as amended (the 1940 Act”). As of November 30, 2022, non-qualifying assets represent 8.6% of the Company’s portfolio at fair value. As a BDC, the Company generally has to invest at least 70% of its total assets in qualifying assets.

(b) Percentages are based on net assets of $335,763,600 as of November 30, 2022.

(c) Because there is no “readily available market quotations” (as defined in the 1940 Act) for these investments, except for B. Riley Financial, Inc., 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). B. Riley Financial, Inc.’s fair value is based on quoted prices in active markets, identical assets or liabilities that the Company has the ability to access. These investments have been included as Level 1 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 the Company’s senior secured revolving credit facility (see Note 8 to the consolidated financial statements).

(e) This investment does not have a stated interest rate that is payable thereon. As a result, the 0.00% 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 1940 Act, this portfolio company is an “affiliate” as we own between 5.0% and 25.0% of the outstanding voting securities. Transactions during the nine months ended November 30, 2022 in which the issuer was an affiliate are as follows:

(g)As defined in the 1940 Act, we “control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the six months ended August 31, 2022 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) 
Netreo Holdings, LLC $3,960,000  $       -  $1,001,323  $-  $           -  $(1,467,584)
Saratoga Investment Corp. CLO 2013-1, Ltd.  -   -   1,003,544   1,632,988   -   (3,098,264)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note  -   -   538,003   -   -   (445,046)
Saratoga Senior Loan Fund I JV, LLC  947,188   -   674,367   -   -   - 
Saratoga Senior Loan Fund I JV, LLC  947,188   -   -   -   -   (6,236,292)
Total $5,854,376  $-  $3,217,237  $1,632,988  $-  $(11,247,186)
Company Purchases  Sales  Total Interest from Investments  Management Fee Income  Net Realized
Gain (Loss) from Investments		  Net Change in Unrealized Appreciation (Depreciation) 
Artemis Wax Corp. $27,440,000  $    -  $3,418,378  $                -  $            -  $2,452,903 
Axero Holdings, LLC  1,089,000   -   609,408   -   -   1,411,823 
ETU Holdins, Inc.  14,880,000   -   480,690   -   -   (3,202)
Total $43,409,000  $-  $4,508,476  $-  $-  $3,861,524 

(g) As defined in the 1940 Act, we “control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. In addition, we “control” Saratoga Investment Corp Senior Loan Fund 2022-1 Ltd. (“SLF 2022”) because SLF 2022 is a wholly owned subsidiary of Saratoga Senior Loan Fund I JV, LLC, of which we own more than 25% of the outstanding voting shares. Transactions during the nine months ended November 30, 2022 in which the issuer was both an affiliate and a portfolio company that we control are as follows:

 

(h)Non-income producing at August 31, 2022.
(i)Includes securities issued by an affiliate of the company.
(j)All or a portion of this investment has an unfunded commitment as of August 31, 2022. (See Note 9 to the consolidated financial statements).
(k)As of August 31, 2022, the investment was on non-accrual status. The fair value of these investments was approximately $9.7 million, which represented 1.0% 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 August 31, 2022.
Company Purchases  Sales  Total Interest from Investments  Management Fee Income  Net Realized
Gain (Loss) from Investments		  Net Change in Unrealized Appreciation (Depreciation) 
Netreo Holdings, LLC $5,960,000  $-  $1,695,950  $-  $          -  $(1,668,472)
Saratoga Investment Corp. CLO 2013-1, Ltd.  -   -   1,228,486   2,451,242   -   (6,923,291)
Saratoga Investment Corp Senior Loan Fund 2022-1, Ltd.  11,392,500   -   148,285   -   -   (422,518)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note  -   -   855,965   -   -   (873,380)
Saratoga Senior Loan Fund I JV, LLC  4,493,954   -   1,062,625   -   -   - 
Saratoga Senior Loan Fund I JV, LLC  4,458,486   -   -   -   -   (7,311,849)
Total $26,304,940  $-  $4,991,311  $2,451,242  $-  $(17,199,510)

 

(h) Non-income producing at November 30, 2022.

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

(j) All or a portion of this investment has an unfunded commitment as of November 30, 2022. (See Note 9 to the consolidated financial statements).

(k) As of November 30, 2022, the investment was on non-accrual status. The fair value of these investments was approximately $9.7 million, which represented 2.9% 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 November 30, 2022.

(m) The fair value of these investments are based on quoted prices in active markets, identical assets or liabilities that the Company has the ability to access. These investments have been included as Level 1 in the Fair Value Hierarchy (see Note 3 to the consolidated financial statements).

BSBY - Bloomberg Short-Term Bank Yield

LIBOR - London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

1M USD BSBY - The 1 month USD BSBY rate as of November 30, 2022 was 3.97%.

3M USD BSBY - The 3 month USD BSBY rate as of August 31,November 30, 2022 was 2.97%4.59%.

1M USD LIBOR - The 1 month USD LIBOR rate as of August 31,November 30, 2022 was 2.56%4.14%.

3M USD LIBOR - The 3 month USD LIBOR rate as of August 31,November 30, 2022 was 3.08%4.78%.

1M USD TERM SOFR - The 1 month USD TERM SOFR rate as of August 31,November 30, 2022 was 2.28%4.13%

3M USD TERM SOFR - The 3 month USD TERM SOFR rate as of August 31,November 30, 2022 was 1.68%4.41%

6M USD TERM SOFR - The 6 month USD TERM SOFR rate as of November 30, 2022 was 4.70%

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, 2022

 

Company(1) 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 - 187.4% (b)Non-control/Non-affiliate investments - 187.4% (b)                    
Targus Holdings, Inc. (h) Consumer Products Common Stock 12/31/2009  210,456  $1,589,630  $692,535   0.2% Consumer Products Common Stock     12/31/2009  210,456  $1,589,630  $692,535   0.2%
     Total Consumer Products        1,589,630   692,535   0.2%   Total Consumer Products        1,589,630   692,535   0.2%
Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020  1,050   475,698   3,305,839   0.9% Corporate Education Software Series 1 Membership Interest 12/8/2020  1,050   475,698   3,305,839   0.9%
     Total Corporate Education Software        475,698   3,305,839   0.9%   Total Corporate Education Software        475,698   3,305,839   0.9%
GreyHeller LLC (h) Cyber Security Common Stock 11/10/2021  6,742,392   1,635,704   1,635,704   0.5% Cyber Security Common Stock     11/10/2021  6,742,392   1,635,704   1,635,704   0.5%
     Total Cyber Security        1,635,704   1,635,704   0.5%     Total Cyber Security        1,635,704   1,635,704   0.5%
New England Dental Partners Dental Practice Management First Lien Term Loan
(3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025		 11/25/2020 $6,555,000   6,502,672   6,404,891   1.8% Dental Practice Management First Lien Term Loan
(3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025    		 11/25/2020 $6,555,000   6,502,672   6,404,891   1.8%
New England Dental Partners (j) Dental Practice Management Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025		 11/25/2020 $2,150,000   2,132,639   1,997,715   0.6% Dental Practice Management Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025    		 11/25/2020 $2,150,000   2,132,639   1,997,715   0.6%
   Total Dental Practice Management      8,635,311   8,402,606   2.4%   Total Dental Practice Management      8,635,311   8,402,606   2.4%
PDDS Buyer, LLC (d) Dental Practice Management Software First Lien Term Loan
(3M USD LIBOR+5.50%), 6.00% Cash, 7/15/2024		 7/15/2019 $28,000,000   27,943,852   27,938,400   7.9% Dental Practice Management Software First Lien Term Loan
(3M USD LIBOR+5.50%), 6.00% Cash, 7/15/2024    		 7/15/2019 $28,000,000   27,943,852   27,938,400   7.9%
PDDS Buyer, LLC (h) Dental Practice Management Software Series A-1 Preferred Shares 8/10/2020  1,755,831   2,000,000   7,099,940   2.0% Dental Practice Management Software Series A-1 Preferred Shares     8/10/2020  1,755,831   2,000,000   7,099,940   2.0%
     Total Dental Practice Management Software        29,943,852   35,038,340   9.9%     Total Dental Practice Management Software        29,943,852   35,038,340   9.9%
C2 Educational Systems Education Services First Lien Term Loan
(3M USD LIBOR+8.50%), 10.00% Cash, 5/31/2023		 5/31/2017 $18,500,000   18,484,747   18,220,650   5.1% Education Services First Lien Term Loan
(3M USD LIBOR+8.50%), 10.00% Cash, 5/31/2023    		 5/31/2017 $18,500,000   18,484,747   18,220,650   5.1%
C2 Education Systems, Inc. (h) Education Services Series A-1 Preferred Stock 5/18/2021  3,127   499,904   599,296   0.2% Education Services Series A-1 Preferred Stock     5/18/2021  3,127   499,904   599,296   0.2%
Zollege PBC Education Services First Lien Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 5/11/2026		 5/11/2021 $16,000,000   15,877,908   15,794,300   4.4% Education Services First Lien Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 5/11/2026    		 5/11/2021 $16,000,000   15,877,908   15,794,300   4.4%
Zollege PBC (j) Education Services Delayed Draw Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 5/11/2026		 5/11/2021 $500,000   495,811   493,950   0.1% Education Services Delayed Draw Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 5/11/2026    		 5/11/2021 $500,000   495,811   493,950   0.1%
Zollege PBC (h) Education Services Class A Units 5/11/2021  250,000   250,000   201,218   0.1% Education Services Class A Units     5/11/2021  250,000   250,000   201,218   0.1%
     Total Education Services        35,608,370   35,309,414   9.9%     Total Education Services        35,608,370   35,309,414   9.9%
Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018  3,065   3,969,291   7,632,061   2.1% Education Software Limited Partner Interests     5/16/2018  3,065   3,969,291   7,632,061   2.1%
Identity Automation Systems (d) Education Software First Lien Term Loan
(3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024		 8/25/2014 $16,941,250   16,941,250   16,941,250   4.8% Education Software First Lien Term Loan
(3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024    		 8/25/2014 $16,941,250   16,941,250   16,941,250   4.8%
Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014  232,616   232,616   801,923   0.2% Education Software Common Stock Class A-2 Units     8/25/2014  232,616   232,616   801,923   0.2%
Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020  43,715   171,571   200,820   0.1% Education Software Common Stock Class A-1 Units     3/6/2020  43,715   171,571   200,820   0.1%
GoReact Education Software First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/17/2020 $8,000,000   7,920,033   8,080,000   2.3%
GoReact (j) Education Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025		 1/18/2022 $-   -   -   0.0%
   Total Education Software      29,234,761   33,656,054   9.5%
TG Pressure Washing Holdings, LLC (h) Facilities Maintenance Preferred Equity 8/12/2019  488,148   488,148   482,036   0.1%
   Total Facilities Maintenance      488,148   482,036   0.1%
Davisware, LLC Field Service Management First Lien Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $6,000,000   5,954,705   6,003,000   1.7%
Davisware, LLC (j) Field Service Management Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024		 9/6/2019 $977,790   975,504   978,279   0.3%
     Total Field Service Management        6,930,209   6,981,279   2.0%
GDS Software Holdings, LLC Financial Services First Lien Term Loan
(3M USD LIBOR+7.00%), 8.00% Cash, 12/30/2026		 12/30/2021 $22,713,926   22,579,864   22,570,829   6.3%
GDS Software Holdings, LLC (j) Financial Services Delayed Draw Term loan
(3M USD LIBOR+7.00%), 8.00% Cash, 12/30/2026		 12/18/2021 $500,000   495,031   496,850   0.1%
GDS Software Holdings, LLC (h) Financial Services Common Stock Class A Units 8/23/2018  250,000   250,000   472,009   0.1%
     Total Financial Services        23,324,895   23,539,688   6.5%

 


 

 

Company(1) Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Ascend Software, LLC Financial Services Software First Lien Term Loan
(3M USD LIBOR+7.50%), 8.50% Cash, 12/15/2026		 12/15/2021 $6,000,000   5,942,482   5,940,000   1.7%
Ascend Software, LLC (j) Financial Services Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 8.50% Cash, 12/15/2026		 12/15/2021 $-   -   -   0.0%
    Total Financial Services Software        5,942,482   5,940,000   1.7%
Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock 1/15/2016  5,000   380,353   714,271   0.2%
    Total Healthcare Products Manufacturing        380,353   714,271   0.2%
Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018  400,000   400,000   1,032,934   0.3%
Axiom Purchaser, Inc. (d) Healthcare Services First Lien Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023		 6/19/2018 $10,000,000   9,974,217   10,013,000   2.8%
Axiom Purchaser, Inc. (d) Healthcare Services Delayed Draw Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023		 6/19/2018 $6,000,000   5,977,846   6,007,800   1.7%
ComForCare Health Care (d) Healthcare Services First Lien Term Loan
(3M USD LIBOR+7.25%), 8.25% Cash, 1/31/2025		 1/31/2017 $25,000,000   24,903,581   25,000,000   7.0%
      Total Healthcare Services        41,255,644   42,053,734   11.8%
TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019  2,487   2,816,693   3,788,769   1.1%
HemaTerra Holding Company, LLC (d) Healthcare Software First Lien Term Loan
(3M USD LIBOR+8.25%), 9.25% Cash, 1/31/2026		 4/15/2019 $36,000,000   35,715,061   35,640,000   10.0%
HemaTerra Holding Company, LLC (d) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+8.25%), 9.25% Cash, 1/31/2026		 4/15/2019 $14,000,000   13,912,744   13,860,000   3.9%
Procurement Partners, LLC Healthcare Software First Lien Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 11/12/2025		 11/12/2020 $35,125,000   34,827,633   34,998,550   9.8%
Procurement Partners, LLC (j) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 11/12/2025		 11/12/2020 $1,200,000   1,188,047   1,195,680   0.3%
Procurement Partners Holdings LLC (h) Healthcare Software Class A Units 11/12/2020  550,986   550,986   643,044   0.2%
    Total Healthcare Software        89,011,164   90,126,043   25.3%
Roscoe Medical, Inc. (h) Healthcare Supply Common Stock 3/26/2014  5,081   508,077   52,853   0.0%
Roscoe Medical, Inc. Healthcare Supply Second Lien Term Loan
11.25% Cash, 3/31/2022		 3/26/2014 $5,141,413   5,141,413   5,141,413   1.4%
      Total Healthcare Supply        5,649,490   5,194,266   1.4%
Book4Time, Inc. (a), (d) Hospitality/Hotel First Lien Term Loan
(3M USD LIBOR+8.50%), 10.25%, 12/22/2025		 12/22/2020 $3,136,517   3,111,278   3,112,052   0.9%
Book4Time, Inc. (a), (j) Hospitality/Hotel Delayed Draw Term Loan
(3M USD LIBOR+8.50%), 10.25%, 12/22/2025		 12/22/2020 $-   -   -   0.0%
Book4Time, Inc. (a), (h), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020 $200,000   156,826   198,638   0.1%
Knowland Group, LLC Hospitality/Hotel Second Lien Term Loan
(3M USD LIBOR+8.00%), 10.00% Cash/1.00% PIK, 5/9/2024		 11/9/2018 $15,878,989   15,878,989   10,592,873   3.0%
Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan
(1M USD LIBOR+8.00%), 9.00% Cash, 9/2/2026		 4/27/2020 $6,000,000   5,952,460   6,021,000   1.7%
Sceptre Hospitality Resources, LLC (j) Hospitality/Hotel Delayed Draw Term Loan
(1M USD LIBOR+8.00%), 9.00% Cash, 9/2/2026		 9/2/2021 $-   -   -   0.0%
    Total Hospitality/Hotel        25,099,553   19,924,563   5.7%
Granite Comfort, LP HVAC Services and Sales First Lien Term Loan
(1M USD LIBOR+8.00%), 9.00% Cash, 11/16/2025		 11/16/2020 $28,000,000   27,764,146   27,977,600   7.9%
Granite Comfort, LP(j) HVAC Services and Sales Delayed Draw Term Loan
(1M USD LIBOR+8.00%), 9.00% Cash, 11/16/2025		 11/16/2020 $2,000,000   1,980,805   1,998,400   0.6%
      Total HVAC Services and Sales        29,744,951   29,976,000   8.5%
AgencyBloc, LLC Insurance Software First Lien Term Loan
(3M USD BSBY+8.00%), 9.00% Cash, 10/1/2026		 10/1/2021 $9,000,000   8,925,938   8,920,800   2.5%
Panther ParentCo LLC (h) Insurance Software Class A Units 10/1/2021  2,000,000   2,000,000   2,000,000   0.6%
    Total Insurance Software        10,925,938   10,920,800   3.1%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
GoReact Education Software First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025    		 1/17/2020 $8,000,000   7,920,033   8,080,000   2.3%
GoReact (j) Education Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025    		 1/18/2022 $-   -   -   0.0%
    Total Education Software        29,234,761   33,656,054   9.5%
TG Pressure Washing Holdings, LLC (h) Facilities Maintenance Preferred Equity     8/12/2019  488,148   488,148   482,036   0.1%
    Total Facilities Maintenance        488,148   482,036   0.1%
Davisware, LLC Field Service Management First Lien Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024    		 9/6/2019 $6,000,000   5,954,705   6,003,000   1.7%
Davisware, LLC (j) Field Service Management Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024    		 9/6/2019 $977,790   975,504   978,279   0.3%
      Total Field Service Management        6,930,209   6,981,279   2.0%
GDS Software Holdings, LLC Financial Services First Lien Term Loan
(3M USD LIBOR+7.00%), 8.00% Cash, 12/30/2026    		 12/30/2021 $22,713,926   22,579,864   22,570,829   6.3%
GDS Software Holdings, LLC (j) Financial Services Delayed Draw Term loan
(3M USD LIBOR+7.00%), 8.00% Cash, 12/30/2026    		 12/18/2021 $500,000   495,031   496,850   0.1%
GDS Software Holdings, LLC  (h) Financial Services Common Stock Class A Units     8/23/2018  250,000   250,000   472,009   0.1%
      Total Financial Services        23,324,895   23,539,688   6.5%
Ascend Software, LLC Financial Services Software First Lien Term Loan
(3M USD LIBOR+7.50%), 8.50% Cash, 12/15/2026    		 12/15/2021 $6,000,000   5,942,482   5,940,000   1.7%
Ascend Software, LLC (j) Financial Services Software Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 8.50% Cash, 12/15/2026    		 12/15/2021 $-   -   -   0.0%
    Total Financial Services Software        5,942,482   5,940,000   1.7%
Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock     1/15/2016  5,000   380,353   714,271   0.2%
    Total Healthcare Products Manufacturing        380,353   714,271   0.2%

 


 

 

Company(1) Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan
(3M USD LIBOR+6.50%), 8.00% Cash, 3/6/2025		 3/6/2013 $5,008,186   5,008,186   5,008,186   1.4%
Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015  343   -   3,418,993   1.0%
      Total Industrial Products        5,008,186   8,427,179   2.4%
LogicMonitor, Inc. (d) IT Services First Lien Term Loan
(3M USD LIBOR+5.00), 6.00% Cash, 5/17/2023		 3/20/2020 $43,000,000   42,806,801   43,000,000   12.1%
       Total IT Services        42,806,801   43,000,000   12.1%
Centerbase, LLC Legal Software First Lien Term Loan
(Daialy USD SOFR+7.50%), 8.50% Cash, 1/18/2027		 1/18/2022 $7,500,000   7,409,860   7,425,000   2.1%
      Total Legal Software        7,409,860   7,425,000   2.1%
Madison Logic, Inc. Marketing Orchestration Software First Lien Term Loan
(1M USD LIBOR+5.75%), 6.75% Cash, 11/22/2026		 12/10/2021 $28,915,663   28,782,977   28,776,867   8.1%
Madison Logic, Inc. (j) Marketing Orchestration Software Revolving Credit Facility
(1M USD LIBOR+5.75%), 6.75% Cash, 11/22/2026		 12/10/2021 $-   -   -   0.0%
    Total Marketing Orchestration Software        28,782,977   28,776,867   8.1%
inMotionNow, Inc. Marketing Services First Lien Term Loan
(3M USD LIBOR+7.50), 10.00% Cash, 5/15/2024		 5/15/2019 $12,200,000   12,139,533   12,290,280   3.5%
inMotionNow, Inc. (d) Marketing Services Delayed Draw Term Loan
(3M USD LIBOR+7.50) 10.00% Cash, 5/15/2024		 5/15/2019 $5,000,000   4,972,992   5,037,000   1.4%
      Total Marketing Services        17,112,525   17,327,280   4.9%
Chronus LLC Mentoring Software First Lien Term Loan
(3M USD LIBOR+5.25), 6.25% Cash, 8/26/2026		 8/26/2021 $15,000,000   14,861,338   14,938,500   4.2%
Chronus LLC (h) Mentoring Software Series A Preferred Stock 8/26/2021  3,000   3,000,000   3,382,625   1.0%
    Total Mentoring Software        17,861,338   18,321,125   5.2%
Omatic Software, LLC Non-profit Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.75% Cash/1.00% PIK, 5/29/2023		 5/29/2018 $10,010,685   9,955,082   10,038,714   2.8%
    Total Non-profit Services        9,955,082   10,038,714   2.8%
Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note
(3M USD LIBOR+8.50%), 10.00% Cash, 12/31/2023		 12/28/2012 $3,300,000   3,300,000   3,278,880   0.9%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests Expires 12/28/2022 12/28/2012  49,318   400,000   446,927   0.1%
      Total Office Supplies        3,700,000   3,725,807   1.0%
Apex Holdings Software Technologies, LLC Payroll Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024		 9/21/2016 $17,000,000   16,990,006   17,000,000   4.7%
      Total Payroll Services        16,990,006   17,000,000   4.7%
Buildout, Inc. Real Estate Services First Lien Term Loan
(3M USD LIBOR+7.00%), 8.00% Cash, 7/9/2025		 7/9/2020 $14,000,000   13,897,546   13,904,800   3.9%
Buildout, Inc. Real Estate Services Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 8.00% Cash, 7/9/2025		 2/12/2021 $38,500,000   38,173,998   38,238,200   10.6%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020  1,205   1,205,308   1,363,014   0.4%
      Total Real Estate Services        53,276,852   53,506,014   14.9%
LFR Chicken LLC Restaurant First Lien Term Loan
(1M USD LIBOR+7.00%), 8.00% Cash, 11/19/2026		 11/19/2021 $12,000,000   11,886,588   11,880,000   3.3%
LFR Chicken LLC (j) Restaurant Delayed Draw Term Loan
(1M USD LIBOR+7.00%), 8.00% Cash, 11/19/2026		 11/19/2021 $-   -   -   0.0%
LFR Chicken LLC (h) Restaurant Series B Preferred Units 11/19/2021  497,183   1,000,000   999,984   0.3%
TMAC Acquisition Co., LLC Restaurant Unsecured Term Loan
8.00% PIK, 9/01/2023		 3/1/2018 $2,979,312   2,979,312   2,805,541   0.8%
    Total Restaurant        15,865,900   15,685,525   4.4%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units     6/19/2018  400,000   400,000   1,032,934   0.3%
Axiom Purchaser, Inc. (d) Healthcare Services First Lien Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023    		 6/19/2018 $10,000,000   9,974,217   10,013,000   2.8%
Axiom Purchaser, Inc. (d) Healthcare Services Delayed Draw Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023    		 6/19/2018 $6,000,000   5,977,846   6,007,800   1.7%
ComForCare Health Care (d) Healthcare Services First Lien Term Loan
(3M USD LIBOR+7.25%), 8.25% Cash, 1/31/2025    		 1/31/2017 $25,000,000   24,903,581   25,000,000   7.0%
    Total Healthcare Services        41,255,644   42,053,734   11.8%
TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests     4/15/2019  2,487   2,816,693   3,788,769   1.1%
HemaTerra Holding Company, LLC (d) Healthcare Software First Lien Term Loan
(3M USD LIBOR+8.25%), 9.25% Cash, 1/31/2026    		 4/15/2019 $36,000,000   35,715,061   35,640,000   10.0%
HemaTerra Holding Company, LLC (d) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+8.25%), 9.25% Cash, 1/31/2026    		 4/15/2019 $14,000,000   13,912,744   13,860,000   3.9%
Procurement Partners, LLC Healthcare Software First Lien Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 11/12/2025    		 11/12/2020 $35,125,000   34,827,633   34,998,550   9.8%
Procurement Partners, LLC (j) Healthcare Software Delayed Draw Term Loan
(3M USD LIBOR+5.50%), 6.50% Cash, 11/12/2025    		 11/12/2020 $1,200,000   1,188,047   1,195,680   0.3%
Procurement Partners Holdings LLC (h) Healthcare Software Class A Units     11/12/2020  550,986   550,986   643,044   0.2%
    Total Healthcare Software        89,011,164   90,126,043   25.3%
Roscoe Medical, Inc. (h) Healthcare Supply Common Stock     3/26/2014  5,081   508,077   52,853   0.0%
Roscoe Medical, Inc. Healthcare Supply Second Lien Term Loan
11.25% Cash, 3/31/2022    		 3/26/2014 $5,141,413   5,141,413   5,141,413   1.4%
      Total Healthcare Supply        5,649,490   5,194,266   1.4%
Book4Time, Inc. (a), (d) Hospitality/Hotel First Lien Term Loan
(3M USD LIBOR+8.50%), 10.25%, 12/22/2025    		 12/22/2020 $3,136,517   3,111,278   3,112,052   0.9%
Book4Time, Inc. (a), (j) Hospitality/Hotel Delayed Draw Term Loan
(3M USD LIBOR+8.50%), 10.25%, 12/22/2025    		 12/22/2020 $-   -   -   0.0%
Book4Time, Inc. (a), (h), (i) Hospitality/Hotel Class A Preferred Shares     12/22/2020 $200,000   156,826   198,638   0.1%
Knowland Group, LLC Hospitality/Hotel Second Lien Term Loan
(3M USD LIBOR+8.00%), 10.00% Cash/1.00% PIK, 5/9/2024    		 11/9/2018 $15,878,989   15,878,989   10,592,873   3.0%
Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan
(1M USD LIBOR+8.00%), 9.00% Cash, 9/2/2026    		 4/27/2020 $6,000,000   5,952,460   6,021,000   1.7%
Sceptre Hospitality Resources, LLC (j) Hospitality/Hotel Delayed Draw Term Loan
(1M USD LIBOR+8.00%), 9.00% Cash, 9/2/2026    		 9/2/2021 $-   -   -   0.0%
    Total Hospitality/Hotel        25,099,553   19,924,563   5.7%

 


 

 

Company(1) Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Pepper Palace, Inc. (d) Specialty Food Retailer First Lien Term Loan
(3M USD LIBOR+6.25%), 7.25% Cash, 6/30/2026		 6/30/2021 $33,830,000   33,531,592   33,261,656   9.2%
Pepper Palace, Inc. (j) Specialty Food Retailer Delayed Draw Term Loan
(3M USD LIBOR+6.25%), 7.25% Cash, 6/30/2026		 6/30/2021 $-   -   (33,600)  0.0%
Pepper Palace, Inc. (j) Specialty Food Retailer Revolving Credit Facility
(3M USD LIBOR+6.25%), 7.25% Cash, 6/30/2026		 6/30/2021 $-   -   (42,000)  0.0%
Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest 6/30/2021  1,000,000   1,000,000   827,050   0.1%
      Total Specialty Food Retailer        34,531,592   34,013,106   9.3%
ArbiterSports, LLC (d) Sports Management First Lien Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025		 2/21/2020 $26,000,000   25,846,091   25,667,199   7.1%
ArbiterSports, LLC (d) Sports Management Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025		 2/21/2020 $1,000,000   999,997   987,200   0.3%
    Total Sports Management        26,846,088   26,654,399   7.4%
Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014  100,000   100,000   1,912,328   0.5%
    Total Staffing Services        100,000   1,912,328   0.5%
Jobvite, Inc. (d) Talent Acquisition Software Second Lien Term Loan
(3M USD LIBOR+7.50%), 8.50% Cash, 1/6/2027		 7/6/2021 $20,000,000   19,841,684   19,652,000   5.5%
    Total Talent Acquisition Software        19,841,684   19,652,000   5.5%
National Waste Partners (d) Waste Services Second Lien Term Loan
10.00% Cash, 11/13/2022		 2/13/2017 $9,000,000   9,000,000.0   9,000,000.0   2.5%
    Total Waste Services        9,000,000   9,000,000   2.5%
Sub Total Non-control/Non-affiliate investments        654,965,044   668,358,516   187.4%
Affiliate investments - 13.5% (b)                  
Artemis Wax Corp. (f), (j) Consumer Services Delayed Draw Term Loan
(1M USD LIBOR+9.00%), 11.00% Cash, 5/20/2026		 5/20/2021 $30,000,000   29,727,282   30,000,000   8.4%
Artemis Wax Corp. (f), (h) Consumer Services Series B-1 Preferred Stock 5/20/2021  934,463   1,500,000   2,687,573   0.8%
Artemis Wax Corp. (f), (h) Consumer Services Series C Preferred Stock 5/20/2021  5,547   5,546,609   5,546,605   1.6%
    Total Consumer Services        36,773,891   38,234,178   10.8%
Axero Holdings, LLC (f) Employee Collaboration Software First Lien Term Loan
(3M USD LIBOR+10.00%), 11.00% Cash, 6/30/2026		 6/30/2021 $5,500,000   5,451,036   5,482,950   1.5%
Axero Holdings, LLC (f), (j) Employee Collaboration Software Delayed Draw Term Loan
(3M USD LIBOR+10.00%), 11.00% Cash, 6/30/2026		 6/30/2021 $-   -   -   0.0%
Axero Holdigns, LLC (f), (j) Employee Collaboration Software Revolving Credit Facility
(3M USD LIBOR+10.00%), 11.00% Cash, 6/30/2026		 2/3/2022 $-   -   -   0.0%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series A Preferred Units 6/30/2021  2,000,000   2,000,000   2,198,000   0.5%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series B Preferred Units 6/30/2021  2,000,000   2,000,000   2,318,996   0.7%
    Total Employee Collaboration Software        9,451,036   9,999,946   2.7%
Sub Total Affiliate investments        46,224,927   48,234,124   13.5%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Granite Comfort, LP HVAC Services and Sales First Lien Term Loan
(1M USD LIBOR+8.00%), 9.00% Cash, 11/16/2025    		 11/16/2020 $28,000,000   27,764,146   27,977,600   7.9%
Granite Comfort, LP(j) HVAC Services and Sales Delayed Draw Term Loan
(1M USD LIBOR+8.00%), 9.00% Cash, 11/16/2025    		 11/16/2020 $2,000,000   1,980,805   1,998,400   0.6%
    Total HVAC Services and Sales        29,744,951   29,976,000   8.5%
AgencyBloc, LLC Insurance Software First Lien Term Loan
(3M USD BSBY+8.00%), 9.00% Cash, 10/1/2026    		 10/1/2021 $9,000,000   8,925,938   8,920,800   2.5%
Panther ParentCo LLC (h) Insurance Software Class A Units     10/1/2021  2,000,000   2,000,000   2,000,000   0.6%
    Total Insurance Software        10,925,938   10,920,800   3.1%
Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan
(3M USD LIBOR+6.50%), 8.00% Cash, 3/6/2025    		 3/6/2013 $5,008,186   5,008,186   5,008,186   1.4%
Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027     5/31/2015  343   -   3,418,993   1.0%
    Total Industrial Products        5,008,186   8,427,179   2.4%
LogicMonitor, Inc. (d) IT Services First Lien Term Loan
(3M USD LIBOR+5.00), 6.00% Cash, 5/17/2023    		 3/20/2020 $43,000,000   42,806,801   43,000,000   12.1%
    Total IT Services        42,806,801   43,000,000   12.1%
Centerbase, LLC Legal Software First Lien Term Loan
(Daialy USD SOFR+7.50%), 8.50% Cash, 1/18/2027    		 1/18/2022 $7,500,000   7,409,860   7,425,000   2.1%
    Total Legal Software        7,409,860   7,425,000   2.1%
Madison Logic, Inc. Marketing Orchestration Software First Lien Term Loan
(1M USD LIBOR+5.75%), 6.75% Cash, 11/22/2026    		 12/10/2021 $28,915,663   28,782,977   28,776,867   8.1%
Madison Logic, Inc. (j) Marketing Orchestration Software Revolving Credit Facility
(1M USD LIBOR+5.75%), 6.75% Cash, 11/22/2026    		 12/10/2021 $-   -   -   0.0%
    Total Marketing Orchestration Software        28,782,977   28,776,867   8.1%
inMotionNow, Inc. Marketing Services First Lien Term Loan
(3M USD LIBOR+7.50), 10.00% Cash, 5/15/2024    		 5/15/2019 $12,200,000   12,139,533   12,290,280   3.5%
inMotionNow, Inc. (d) Marketing Services Delayed Draw Term Loan
(3M USD LIBOR+7.50)  10.00% Cash, 5/15/2024    		 5/15/2019 $5,000,000   4,972,992   5,037,000   1.4%
    Total Marketing Services        17,112,525   17,327,280   4.9%
Chronus LLC Mentoring Software First Lien Term Loan
(3M USD LIBOR+5.25), 6.25% Cash, 8/26/2026    		 8/26/2021 $15,000,000   14,861,338   14,938,500   4.2%
Chronus LLC (h) Mentoring Software Series A Preferred Stock     8/26/2021  3,000   3,000,000   3,382,625   1.0%
    Total Mentoring Software        17,861,338   18,321,125   5.2%

 


 

 

Company(1) Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/
Number of Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Control investments - 28.3% (b)                  
Netreo Holdings, LLC (g) IT Services First Lien Term Loan
(3M USD LIBOR +8.00%), 9.00% Cash 12/31/2025		 7/3/2018 $5,432,440   5,409,201   5,421,575   1.4%
Netreo Holdings, LLC (d), (g), (j) IT Services Delayed Draw Term Loan
(3M USD LIBOR +8.00%), 9.00% Cash, 12/31/2025		 5/26/2020 $13,433,515   13,406,530   13,406,648   3.8%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018  4,600,677   8,344,500   18,975,523   5.3%
    Total IT Services        27,160,231   37,803,746   10.5%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities
9.27%, 4/20/2033		 1/22/2008 $111,000,000   32,273,125   28,654,905   8.1%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities
(3M USD LIBOR+10.00%), 10.17%, 4/20/2033		 8/9/2021 $9,375,000   9,375,000   9,375,000   2.6%
      Total Structured Finance Securities        41,648,125   38,029,905   10.7%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Unsecured Loan
10.00%, 6/15/2023		 2/17/2022 $13,125,000   13,125,000   13,125,000   3.7%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Membership Interest 2/17/2022  13,125,000   13,125,000   12,016,064   3.4%
    Total Investment Fund        26,250,000   25,141,064   7.1%
Sub Total Control investments        95,058,356   100,974,715   28.3%
TOTAL INVESTMENTS - 229.2% (b)       $796,248,327  $817,567,355   229.2%
Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Omatic Software, LLC Non-profit Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.75% Cash/1.00% PIK, 5/29/2023    		 5/29/2018 $10,010,685   9,955,082   10,038,714   2.8%
    Total Non-profit Services        9,955,082   10,038,714   2.8%
Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note
(3M USD LIBOR+8.50%), 10.00% Cash, 12/31/2023    		 12/28/2012 $3,300,000   3,300,000   3,278,880   0.9%
Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests                          
Expires 12/28/2022    		 12/28/2012  49,318   400,000   446,927   0.1%
    Total Office Supplies        3,700,000   3,725,807   1.0%
Apex Holdings Software Technologies, LLC Payroll Services First Lien Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024    		 9/21/2016 $17,000,000   16,990,006   17,000,000   4.7%
      Total Payroll Services        16,990,006   17,000,000   4.7%
Buildout, Inc. Real Estate Services First Lien Term Loan
(3M USD LIBOR+7.00%), 8.00% Cash, 7/9/2025    		 7/9/2020 $14,000,000   13,897,546   13,904,800   3.9%
Buildout, Inc. Real Estate Services Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 8.00% Cash, 7/9/2025    		 2/12/2021 $38,500,000   38,173,998   38,238,200   10.6%
Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests     7/9/2020  1,205   1,205,308   1,363,014   0.4%
    Total Real Estate Services        53,276,852   53,506,014   14.9%
LFR Chicken LLC Restaurant First Lien Term Loan
(1M USD LIBOR+7.00%), 8.00% Cash, 11/19/2026    		 11/19/2021 $12,000,000   11,886,588   11,880,000   3.3%
LFR Chicken LLC (j) Restaurant Delayed Draw Term Loan
(1M USD LIBOR+7.00%), 8.00% Cash, 11/19/2026    		 11/19/2021 $-   -   -   0.0%
LFR Chicken LLC (h) Restaurant Series B Preferred Units     11/19/2021  497,183   1,000,000   999,984   0.3%
TMAC Acquisition Co., LLC Restaurant Unsecured Term Loan
8.00% PIK, 9/01/2023    		 3/1/2018 $2,979,312   2,979,312   2,805,541   0.8%
    Total Restaurant        15,865,900   15,685,525   4.4%
Pepper Palace, Inc. (d) Specialty Food Retailer First Lien Term Loan
(3M USD LIBOR+6.25%), 7.25% Cash, 6/30/2026    		 6/30/2021 $33,830,000   33,531,592   33,261,656   9.2%
Pepper Palace, Inc. (j) Specialty Food Retailer Delayed Draw Term Loan
(3M USD LIBOR+6.25%), 7.25% Cash, 6/30/2026    		 6/30/2021 $-   -   (33,600)  0.0%
Pepper Palace, Inc. (j) Specialty Food Retailer Revolving Credit Facility
(3M USD LIBOR+6.25%), 7.25% Cash, 6/30/2026    		 6/30/2021 $-   -   (42,000)  0.0%
Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest     6/30/2021  1,000,000   1,000,000   827,050   0.1%
    Total Specialty Food Retailer        34,531,592   34,013,106   9.3%

 

  Number of Shares  Cost  Fair Value  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 14.9% (b)            
U.S. Bank Money Market (k)  52,870,342  $52,870,342  $52,870,342   14.9%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  52,870,342  $52,870,342  $52,870,342   14.9%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
ArbiterSports, LLC (d) Sports Management First Lien Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025    		 2/21/2020 $26,000,000   25,846,091   25,667,199   7.1%
ArbiterSports, LLC (d) Sports Management Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025    		 2/21/2020 $1,000,000   999,997   987,200   0.3%
    Total Sports Management        26,846,088   26,654,399   7.4%
Avionte Holdings, LLC (h) Staffing Services Class A Units     1/8/2014  100,000   100,000   1,912,328   0.5%
      Total Staffing Services        100,000   1,912,328   0.5%
Jobvite, Inc. (d) Talent Acquisition Software Second Lien Term Loan
(3M USD LIBOR+7.50%), 8.50% Cash, 1/6/2027    		 7/6/2021 $20,000,000   19,841,684   19,652,000   5.5%
    Total Talent Acquisition Software        19,841,684   19,652,000   5.5%
National Waste Partners (d) Waste Services Second Lien Term Loan
10.00% Cash, 11/13/2022    		 2/13/2017 $9,000,000   9,000,000.0   9,000,000.0   2.5%
    Total Waste Services        9,000,000   9,000,000   2.5%
Sub Total Non-control/Non-affiliate investments            654,965,044   668,358,516   187.4%
Affiliate investments - 13.5% (b)                      
                      
Artemis Wax Corp. (f), (j) Consumer Services Delayed Draw Term Loan
(1M USD LIBOR+9.00%), 11.00% Cash, 5/20/2026    		 5/20/2021 $30,000,000   29,727,282   30,000,000   8.4%
Artemis Wax Corp. (f), (h) Consumer Services Series B-1 Preferred Stock     5/20/2021  934,463   1,500,000   2,687,573   0.8%
Artemis Wax Corp. (f), (h) Consumer Services Series C Preferred Stock     5/20/2021  5,547   5,546,609   5,546,605   1.6%
    Total Consumer Services        36,773,891   38,234,178   10.8%
Axero Holdings, LLC (f) Employee Collaboration Software First Lien Term Loan
(3M USD LIBOR+10.00%), 11.00% Cash, 6/30/2026    		 6/30/2021 $5,500,000   5,451,036   5,482,950   1.5%
Axero Holdings, LLC (f), (j) Employee Collaboration Software Delayed Draw Term Loan
(3M USD LIBOR+10.00%), 11.00% Cash, 6/30/2026    		 6/30/2021 $-   -   -   0.0%
Axero Holdigns, LLC (f), (j) Employee Collaboration Software Revolving Credit Facility
(3M USD LIBOR+10.00%), 11.00% Cash, 6/30/2026    		 2/3/2022 $-   -   -   0.0%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series A Preferred Units     6/30/2021  2,000,000   2,000,000   2,198,000   0.5%
Axero Holdings, LLC (f), (h) Employee Collaboration Software Series B Preferred Units     6/30/2021  2,000,000   2,000,000   2,318,996   0.7%
    Total Employee Collaboration Software        9,451,036   9,999,946   2.7%
Sub Total Affiliate investments            46,224,927   48,234,124   13.5%
Control investments - 28.3% (b)                      
                      
Netreo Holdings, LLC (g) IT Services First Lien Term Loan
(3M USD LIBOR +8.00%), 9.00% Cash 12/31/2025		 7/3/2018 $5,432,440   5,409,201   5,421,575   1.4%
Netreo Holdings, LLC (d), (g), (j) IT Services Delayed Draw Term Loan
(3M USD LIBOR +8.00%), 9.00% Cash, 12/31/2025		 5/26/2020 $13,433,515   13,406,530   13,406,648   3.8%
Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018  4,600,677   8,344,500   18,975,523   5.3%
      Total IT Services        27,160,231   37,803,746   10.5%


Company(1) Industry Investment Interest Rate/
Maturity		 Original
Acquisition
Date		 Principal/
Number of
Shares		  Cost  Fair
Value (c)		  % of
Net Assets		 
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities
9.27%, 4/20/2033    		 1/22/2008 $111,000,000   32,273,125   28,654,905   8.1%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities
(3M USD LIBOR+10.00%), 10.17%, 4/20/2033    		 8/9/2021 $9,375,000   9,375,000   9,375,000   2.6%
    Total Structured Finance Securities        41,648,125   38,029,905   10.7%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Unsecured Loan
10.00%, 6/15/2023    		 2/17/2022 $13,125,000   13,125,000   13,125,000   3.7%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Membership Interest     2/17/2022  13,125,000   13,125,000   12,016,064   3.4%
    Total Investment Fund        26,250,000   25,141,064   7.1%
Sub Total Control investments            95,058,356   100,974,715   28.3%
TOTAL INVESTMENTS - 229.2% (b)           $796,248,327  $817,567,355   229.2%

  Number of
Shares		  Cost  Fair Value  % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 14.9% (b)            
U.S. Bank Money Market (k)  52,870,342  $52,870,342  $52,870,342   14.9%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts  52,870,342  $52,870,342  $52,870,342   14.9%

 

(1)(1)Securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and are restricted securities.

(a)(a)Represents an investment that is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, as amended (the 1940 Act”). As of February 28, 2022, non-qualifying assets represent 6.7% of the Company’s portfolio at fair value. As a BDC, the Company generally has to invest at least 70% of its total assets in qualifying assets.

(b)(b)Percentages are based on net assets of $355,780,523 as of February 28, 2022.

(c)(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)(d)These securities are either fully or partially pledged as collateral under a senior secured revolving credit facility (see Note 8 to the consolidated financial statements).

(e)(e)This investment does not have a stated interest rate that is payable thereon. As a result, the 9.27% 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)(f)As defined in the 1940 Act, this portfolio company is an “affiliate” as we own between 5.0% and 25.0% of the outstanding voting securities. GreyHeller, LLC is no longer an affiliate as of February 28, 2022. Transactions during the year ended February 28, 2022 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 (Depreciation)  Purchases Sales Total
Interest
from
Investments		 Management
Fee
Income		 Net Realized
Gain (Loss)
from
Investments		 Net Change in
Unrealized
Appreciation
(Depreciation)		 
Artemis Wax Corp. $36,200,000  $-  $1,919,100  $         -  $-  $1,460,287  $36,200,000  $-  $1,919,100  $          -  $-  $1,460,287 
Axero Holdings, LLC  9,445,000   -   416,092   -   -   548,910   9,445,000   -   416,092   -   -   548,910 
GreyHeller, LLC  8,910,000   (26,428,457)  973,278   -   7,328,457   (3,102,569)  8,910,000   (26,428,457)  973,278   -   7,328,457   (3,102,569)
Top Gun  -   -   -   -   -   1,066,536   -   -   -   -   -   1,066,536 
Total $54,555,000  $(26,428,457) $3,308,471  $-  $7,328,457  $(26,836) $54,555,000  $(26,428,457) $3,308,470  $-  $7,328,457  $(26,836)


 

(g)(g)

As defined in the 1940 Act, we “control” this portfolio company because we own more than 25% of the portfolio company’s or holding company’s outstanding voting securities. Transactions during the year ended February 28, 2022 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)		 
Netreo Holdings, LLC $17,074,500  $-  $1,814,735  $-  $-  $5,055,909  $17,074,500  $-  $1,814,735  $-  $-  $5,055,909 
Saratoga Investment Corp. CLO 2013-1, Ltd.  -   -   4,372,958   3,262,591   -   (1,221,309)  -   -   4,372,958   3,262,591   -   (1,221,309)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-3 Note  -   (17,875,000)  814,431   -   -   (454,025)  -   (17,875,000)  814,431   -   -   (454,025)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-1-R-3 Note  8,500,000   (8,500,000)  4,786   -   (139,867)  -   8,500,000   (8,500,000)  4,786   -   (139,867)  - 
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note  9,375,000   -   539,564   -   -   -   9,375,000   -   539,564   -   -   - 
Saratoga Senior Loan Fund I JV, LLC  13,125,000   -   126,389   -   -   -   13,125,000   -   126,389   -   -   - 
Saratoga Senior Loan Fund I JV, LLC  13,125,000   -   -   -   -   (1,108,936)  13,125,000   -   -   -   -   (1,108,936)
Total $61,199,500  $(26,375,000) $7,672,863  $3,262,591  $(139,867) $2,271,639  $61,199,500  $(26,375,000) $7,672,863  $3,262,591  $(139,867) $2,271,639 

 

(h)Non-income producing at February 28, 2022.

(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, 2022. (See Note 9 to the consolidated financial statements).

(k)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, 2022.

 

BSBY - Bloomberg Short-Term Bank Yield

LIBOR - London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

3M USD BSBY - The 3 month USD BSBY rate as of February 28, 2022 was 0.50%.

1M USD LIBOR - The 1 month USD LIBOR rate as of February 28, 2022 was 0.24%.

3M USD LIBOR - The 3 month USD LIBOR rate as of February 28, 2022 was 0.50%.

Daily USD SOFR - The daily USD SOFR rate as of February 28, 2022 was 0.05%

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

BSBY - Bloomberg Short-Term Bank Yield
LIBOR - London Interbank Offered Rate
SOFR - Secured Overnight Financing Rate
3M USD BSBY - The 3 month USD BSBY rate as of February 28, 2022 was 0.50%.
1M USD LIBOR - The 1 month USD LIBOR rate as of February 28, 2022 was 0.24%.
3M USD LIBOR - The 3 month USD LIBOR rate as of February 28, 2022 was 0.50%.
Daily USD SOFR - The daily USD SOFR rate as of February 28, 2022 was 0.05%
PIK - Payment-in-Kind (see Note 2 to the consolidated financial statements).

 

See accompanying notes to consolidated financial statements.statements

 


 

 

SARATOGA INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

August 31,November 30, 2022

(unaudited)

 

Note 1. Organization

 

Saratoga Investment Corp. (the “Company”, “we”, “our” and “us”) is a non-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, as amended (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, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). 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” or “Saratoga Investment Advisors”), pursuant to an investment advisory and 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-ownedwholly owned subsidiaries, SIA-ARC, Inc., SIA-Avionte, Inc., SIA-AX, Inc., SIA-GH, Inc., SIA-MAC, Inc., SIA-PP Inc., SIA-TG, Inc., SIA-TT, Inc., SIA-Vector, Inc. and SIA-VR, 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). In February 2022, SIA-GH, Inc., SIA-TT Inc. and SIA-VR, Inc. received an approved plan of liquidation following the sale of equity held by each of the portfolio companies. Tax Blockers are consolidated for accounting purposes, but are not consolidated for U.S. federal income tax purposes and may incur U.S. federal income tax expenses 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 August 14, 2019, our wholly owned subsidiary, Saratoga Investment Corp. SBIC II LP (“SBIC II LP”), also received an SBIC license from the SBA. On September 29, 2022, our wholly owned subsidiary, Saratoga Investment Corp. SBIC II LP’sIII LP (“SBIC III LP”), also received an SBIC license providesfrom the SBA. SBIC LP’s license provided up to $175.0$150.0 million in additional long-term capital in the form of SBA debentures.debentures, while SBIC II LP’s and SBIC III LP’s SBIC licenses provide up to $175.0 million each. Under current SBIC regulations, for two or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $350.0 million with at least $175.0 million in combined regulatory capital. 

 


The Company has formed a wholly owned special purpose entity, Saratoga Investment Funding II LLC, a Delaware limited liability company (“SIF II”), for the purpose of entering into a $50.0 million senior secured revolving credit facility with Encina Lender Finance, LLC (the “Lender”), supported by loans held by SIF II and pledged to the Lender under the credit facility (the “Encina Credit Facility”). The Encina Credit Facility closed on October 4, 2021. During the first two years following the closing date, SIF II may request an increase in the commitment amount under the Encina Credit Facility to up to $75.0 million. The terms of the Encina Credit Facility require a minimum drawn amount of $12.5 million at all times during the first six months following the closing date, which increases to the greater of $25.0 million or 50% of the commitment amount in effect at any time thereafter. The term of the Encina Credit Facility is three years. Advances under the Encina Credit Facility bear interest at a floating rate per annum equal to LIBOR plus 4.0%, with LIBOR having a floor of 0.75%, with customary provisions related to the selection by the Lender and the Company of a replacement benchmark rate. Concurrently with the closing of the Encina Credit Facility, all remaining amounts outstanding on the Company’s existing revolving credit facility with Madison Capital Funding, LLC were repaid and the revolving credit facility terminated.

 


On October 26, 2021, the Company and TJHA JV I LLC (“TJHA”) entered into a Limited Liability Company Agreement (the “LLC Agreement”) to co-manage Saratoga Senior Loan Fund I JV LLC (“SLF JV”). SLF JV is under joint control and is not consolidated. SLF JV is invested in Saratoga Investment Corp Senior Loan Fund 2021-12022-1 Ltd. (“SLF 2021”2022”), which is a wholly owned subsidiary of SLF JV. SLF 20212022 was formed for the purpose of making investments in a diversified portfolio of broadly syndicated first lien and second lien term loans or bonds in the primary and secondary markets. On October 28, 2022, SLF 2022 issued $402.1 million of debt (the “2022 JV CLO Notes”) through a collateralized loan obligation trust (the “JV CLO trust”). The 2022 JV CLO Notes were issued pursuant to an indenture, dated October 28, 2022 (the “JV Indenture”), with U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association) (the “Trustee”) servicing as the trustee.

 

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 wholly owned special purpose financing subsidiaries, Saratoga Investment Funding, LLC (previously known as GSC Investment Funding LLC), SIF II, SBIC LP, SBIC II LP, SIA-ARC, Inc., SIA-Avionte, Inc., SIA-AX, Inc., SIA-GH, Inc., SIA-MAC, Inc., SIA-PP, Inc., SIA-TG, Inc., SIA-TT Inc., SIA-Vector, Inc. and SIA-Vector, Inc.SIA-VR, 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, SBIC II LP, and SBIC IIIII LP are 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 — Investment Companies” (“ASC 946”). There have been no changes to the Company, SBIC LP, SBIC II LP, or SBIC IIIII LP’s status as investment companies during the sixnine months ended August 31,November 30, 2022.

 

Principles of Consolidation

 

Under the investment company rules and regulations pursuant to ASC Topic 946, the Company is precluded from consolidating any entity other than another investment company.

 

The Company has determined that SLF JV is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-ownedwholly owned investment company subsidiary. SLF JV is not a wholly-ownedwholly owned investment company subsidiary as the Company and TJHA each have an equal 50% voting interest in SLF JV and thus neither party has a controlling financial interest. Furthermore, ASC 810 concludes that in a joint venture where both members have equal decision makingdecision-making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate its investment in SLF JV.

 


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 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 investment company’s total outstanding voting shares;

 

●we were to hold securities in the investment company having an aggregate value in excess of 5.0% of the value of our total assets; or

 

●we were to hold securities in investment companies having an aggregate value in excess of 10.0% of the value of our total assets.

 

As of August 31,November 30, 2022, 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 and short-term liquid investments in money market funds, representing payments received on secured investments or other reserved amounts associated with the revolving credit facilities.Encina Credit Facility within SIF II, our wholly owned subsidiary. 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 revolving credit facilities.Encina 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 subsidiaries, SBIC LP, SBIC II LP, and SBIC II LP.III LP, our wholly owned subsidiaries.

 

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 the beginning-of-period and end-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:

 August 31,
2022		 August 31,
2021		  November 30,
2022		  November 30,
2021		 
Cash and cash equivalents $3,068,165  $60,268,602  $5,672,012  $120,881,990 
Cash and cash equivalents, reserve accounts  9,579,226   13,040,805   41,375,630   23,186,481 
Total cash and cash equivalents and cash and cash equivalents, reserve accounts $12,647,391  $73,309,407  $47,047,642  $144,068,471 

 

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 those non-control investments in companies in which we own between 5.0% and 25.0% of the voting securities. Under the 1940 Act, “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 Measurements 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 measurement 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 independent third-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.

  


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 the Manager 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. We use a third-party independent valuation firm to value our investment in the subordinated notes of Saratoga Investment Corp. CLO 2013-1, Ltd. (“Saratoga CLO”) and, the Class F-2-R-3 Notes tranche of the Saratoga CLO, and the Class E Notes tranche of the SLF 2022 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 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.

 

We use multiple techniques for determining fair value based on the nature of the investment and experience with those types of investments and specific portfolio companies. The selections of the valuation techniques and the inputs and assumptions used within those techniques often require subjective judgements and estimates. These techniques include market comparables, discounted cash flows and enterprise value waterfalls. Fair value is best expressed as a range of values from which the Company determines a single best estimate. The types of inputs and assumptions that may be considered in determining the range of values of our investments include the nature and realizable value of any collateral, the portfolio company’s ability to make payments, market yield trend analysis and volatility in future interest rates, call and put features, the markets in which the portfolio company does business, comparison to publicly traded companies, discounted cash flows and other relevant factors.

 


The Company’s investment in Saratoga CLO is carried at fair value, which is based on a discounted cash flow valuation technique that utilizes prepayment, re-investment and loss inputs 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 flows, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The cash flows use a set of inputs including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The inputs 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 the valuation for our investment in Saratoga CLO.

 

The Company’s equity investment in SLF JV is measured using the proportionate share of the net asset value (“NAV”), or equivalent, of SLF JV as a practical expedient for fair value, provided by ASC 820.

 

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 valueNAV 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.


 

In December 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted a new rule providing a framework for fund valuation practices. New Rule 2a-5 under the 1940 Act (“Rule 2a-5”) establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit boards of directors, subject to board oversight and certain other conditions, to designate certain parties to perform fair value determinations. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must determine the fair value of a security. The SEC also adopted new Rule 31a-4 under the 1940 Act (“Rule 31a-4”), which provides the recordkeeping requirements associated with fair value determinations. Finally, the SEC is rescinding previously issued guidance on related issues, including the role of the board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, and havehad a compliance date of September 8, 2022. While our board of directors has not elected to designate Saratoga Investment Advisors as the valuation designee, the Company has adopted certain revisions to its valuation policies and procedures in order comply with the applicable requirements of Rule 2a-5 and Rule 31a-4.

 

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 a trade-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 using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of discounts over the life of the investment and amortization of premiums on investments up to the earliest call date.

 

Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reserved when a loan is placed on non-accrual status. Interest payments received on non-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 August 31,November 30, 2022, our investment in one portfolio company was on non-accrual status with a fair value of approximately $9.7 million, or 1.0% of the fair value of our portfolio. At February 28, 2022, there were no investments on non-accrual status.

 


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/or re-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.

 

Payment-in-Kind Interest

 

The Company holds debt and preferred equity investments in its portfolio that contain a payment-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. The Company stops accruing PIK interest if it is expected that the issuer will not be able to pay all principal and interest when due.

 

Dividend Income

 

Dividend income is recorded in the consolidated statements of operations when earned.


  

Structuring and Advisory Fee Income

 

Structuring and advisory fee income represents various fee income earned and received for performing certain investment structuring and advisory activities during the closing of new investments.

 

Other Income

 

Other income includes prepayment income fees, and monitoring, administration and amendment fees and is recorded in the consolidated statements of operations when earned.

 

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 the SBA debentures of SBIC LP, SBIC II LP, and SBIC IIIII LP are deferred and amortized using the straight-line method over the life of the debentures. Any discount or premium on the issuance of any debt is amortized using the effective interest method over the life of the respective debt security.

 

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.

 

Realized Loss on Extinguishment of Debt 

 

Upon the repayment of debt obligations that are deemed to be extinguishments, the difference between the principal amount due at maturity adjusted for any unamortized debt issuance costs is recognized as a loss (i.e., the unamortized debt issuance costs are recognized as a loss upon extinguishment of the underlying debt obligation).

 

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 reasonably believes 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, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code. By meeting these requirements, the Company will not be subject to corporate federal income taxes on ordinary income or capital gains timely distributed to stockholders. Therefore, no provision has been recorded for federal income taxes, except as related to the Taxable Blockers and long-term capital gains, 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% 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% on undistributed income if it does not distribute at least (1) 98% of its net ordinary income in any calendar year, (2) 98.2% of its capital gain net income for each one-year period ending on October 31 and (3) any net ordinary income and capital gain net income that it recognized for preceding years, but were not distributed during such year, and on which the Company paid no U.S federal income tax.

 

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


 

In accordance with U.S. Treasury regulations and published guidance issued by the Internal Revenue Service (“IRS”), a publicly offered RIC may treat a distribution of its own stock as counting toward its RIC distribution requirements if each stockholder elects to receive his, her, or its entire distribution in either cash or stock of the RIC. This published guidance indicates that the rule will apply where the aggregate amount of cash to be distributed to all stockholders is not at least 20.0% of the aggregate declared distribution. Under the published guidance, if too many stockholders elect to receive cash, the cash available for distribution must be allocated among the stockholders electing to receive 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 its source-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’s tax-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 and tax-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-likely than-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, 2022, the Company did not incur any interest or penalties. Although we file federal and state tax returns, our major tax jurisdiction is federal. The 2019, 2020, 2021 and 2022 federal tax years for the Company remain subject to examination by the IRS. As of August 31,November 30, 2022 and February 28, 2022, 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 the ex-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 some or all of our net 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 by the Company to the Manager on the consolidated statements of assets and liabilities when the net realized and unrealized gain on its investments exceed all net realized and unrealized capital losses on its investments because 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 Manager related to capital gains will be determined and payable in arrears at the end of each fiscal year and only reflected those net realized capital gains net of realized and unrealized losses for the period.

 


Recent Accounting Pronouncements

 

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The Company has agreements that have LIBOR as a reference rate with certain portfolio companies and under the Encina Credit Facility. Many of these agreements (including the credit agreements relating to the Encina Credit Facility) include an alternative successor rate or language for choosing an alternative successor rate when LIBOR reference is no longer considered to be appropriate. With respect to other agreements, the Company intends to work with its portfolio companies to modify agreements to choose an alternative successor rate. Contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. The standard is effective as of March 12, 2020 through December 31, 2022. Management does not believe this optional guidance has 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 or non-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. 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 independent 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 that 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. 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 technique. We use multiple techniques for determining fair value based on the nature of the investment and experience with those types of investments and specific portfolio companies. The selections of the valuation techniques and the inputs and assumptions used within those techniques often require subjective judgements and estimates. These techniques include market comparables, discounted cash flows and enterprise value waterfalls. Fair value is best expressed as a range of values from which the Company determines a single best estimate. The types of inputs and assumptions that may be considered in determining the range of values of our investments include the nature and realizable value of any collateral, the portfolio company’s ability to make payments, market yield trend analysis and volatility in future interest rates, call and put features, the markets in which the portfolio company does business, comparison to publicly traded companies, discounted cash flows and other relevant factors.


 

 

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 August 31,November 30, 2022 (dollars in thousands), according to the fair value hierarchy:

  Fair Value Measurements  Valued
Using Net		    
  Level 1  Level 2  Level 3  Asset  Value*  Total 
First lien term loans $-  $-  $793,011   -  $793,011 
Second lien term loans  -   -   23,662   -   23,662 
Unsecured term loans  -   -   16,841   -   16,841 
Structured finance securities  -   -   32,327   -   32,327 
Equity interests  -   -   82,096   6,727   88,823 
Total $      -  $      -  $947,937  $6,727  $954,664 

  Fair Value Measurements  Valued Using
Net Asset		    
  Level 1  Level 2  Level 3  Value*  Total 
First lien term loans $-  $-  $804,242  $-  $804,242 
Second lien term loans  -   -   23,780   -   23,780 
Unsecured term loans  164   -   20,435   -   20,599 
Structured finance securities  -   -   38,900   -   38,900 
Equity interests  -   -   85,350   9,163   94,513 
Total $164  $-  $972,707  $9,163  $982,034 

**The Company’s equity investment in SLF JV is measured using the proportionate share of the net asset value,NAV, or equivalent, as a practical expedient and thus has not been classified in the fair value hierarchy.

The following table presents fair value measurements of investments, by major class, as of February 28, 2022 (dollars in thousands), according to the fair value hierarchy:

 Fair Value Measurements Valued
Using Net
     Fair Value Measurements  Valued Using
Net Asset		    
 Level 1 Level 2 Level 3 Asset Value* Total  Level 1 Level 2 Level 3 Value* Total 
First lien term loans $          -  $        -  $631,572  $-  $631,572  $          -  $          -  $631,572  $      -  $631,572 
Second lien term loans  -   -   44,386   -   44,386   -   -   44,386   -   44,386 
Unsecured loans  -   -   15,931   -   15,931   -   -   15,931   -   15,931 
Structured finance securities  -   -   38,030   -   38,030   -   -   38,030   -   38,030 
Equity interests  -   -   75,632   12,016   87,648   -   -   75,632   12,016   87,648 
Total $-  $-  $805,551  $12,016  $817,567  $-  $-  $805,551  $12,016  $817,567 

*The Company’s equity investment in SLF JV is measured using the proportionate share of the net asset value,NAV, or equivalent, as a practical expedient and thus has not been classified in the fair value hierarchy.


The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the sixnine months ended August 31,November 30, 2022 (dollars in thousands):

  First lien
term loans		  Second lien
term loans		  Unsecured
term loans		  Structured
finance
securities		  Equity
interests		  Total 
Balance as of February 28, 2022 $631,572  $44,386  $15,931  $38,030  $75,632  $805,551 
Payment-in-kind and other adjustments to cost  244   90   -   (2,159)  451   (1,374)
Net accretion of discount on investments  1,262   (17)  -   -   -   1,245 
Net change in unrealized appreciation (depreciation) on investments  (12,049)  (663)  10   (8,219)  2,467   (18,454)
Purchases  309,022   4,950   4,494   11,393   10,606   340,465 
Sales and repayments  (125,972)  (24,966)  -   (145)  (11,009)  (162,092)
Net realized gain (loss) from investments  163   -   -   -   7,203   7,366 
Balance as of November 30, 2022 $804,242  $23,780  $20,435  $38,900  $85,350  $972,707 
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 $(12,318) $(705) $10  $(8,219) $15,042  $(6,190)

 

  First lien
term loans		  Second lien
term loans		  Unsecured
term loans		  Structured
finance
securities		  Equity
interests		  Total 
Balance as of February 28, 2022 $631,572  $44,386  $15,931  $38,030  $75,632  $805,551 
Payment-in-kind and other adjustments to cost  160   -   -   (2,160)  405   (1,595)
Net accretion of discount on investments  851   (17)  -   -   -   834 
Net change in unrealized appreciation (depreciation) on investments  (10,606)  (691)  (37)  (3,543)  (1,478)  (16,355)
Purchases  241,133   4,950   947   -   9,537   256,567 
Sales and repayments  (70,262)  (24,966)  -   -   (9,944)  (105,172)
Net realized gain (loss) from investments  163   -   -   -   7,944   8,107 
Balance as of August 31, 2022 $793,011  $23,662  $16,841  $32,327  $82,096  $947,937 
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 $(10,543) $(881) $(37) $(3,544) $3,623  $(11,382)

 

Purchases, PIK 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 interests.

 

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 transfers or restructurings in or out of Levels 1, 2 or 3 during the sixnine months ended August 31,November 30, 2022.

 

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the sixnine months ended August 31,November 30, 2021 (dollars in thousands):

  First lien
term loans		  Second lien
term loans		  Unsecured
term loans		  Structured
finance
securities		  Equity
interests		  Total 
Balance as of February 28, 2021 $440,456  $24,930  $2,141  $49,779  $37,007  $554,313 
Payment-in-kind and other adjustments to cost  389   30   498   658   331   1,906 
Net accretion of discount on investments  874   10   -  ��-   -   884 
Net change in unrealized appreciation (depreciation) on investments  285   73   49   2,499   17,283   20,189 
Purchases  173,018   19,825   -   -   42,338   235,181 
Sales and repayments  (121,429)  -   -   (8,360)  (19,998)  (149,787)
Net realized gain (loss) from investments  -   -   -   (140)  3,551   3,411 
Balance as of August 31, 2021 $493,593  $44,868  $2,688  $44,436  $80,512  $666,097 
Net change in unrealized appreciation (depreciation) for the year relating to those Level 3 assets that  were still held by the Company at the end of the period $1,790  $73  $49  $2,952  $16,605  $21,469 


  First lien
term loans		  Second lien
term loans		  Unsecured
term loans		  Structured
finance
securities		  Equity
interests		  Total 
Balance as of February 28, 2021 $440,456  $24,930  $2,141  $49,779  $37,007  $554,313 
Payment-in-kind and other adjustments to cost  309   70   498   (546)  790   1,121 
Net accretion of discount on investments  1,346   22   -   -   -   1,368 
Net change in unrealized appreciation (depreciation) on investments  2,292   (431)  99   (68)  12,254   14,146 
Purchases  226,786   19,825   -   -   47,143   293,754 
Sales and repayments  (165,570)  -   -   (8,360)  (42,307)  (216,237)
Net realized gain (loss) from investments  -   -   -   (140)  13,468   13,328 
Balance as of November 30, 2021 $505,619  $44,416  $2,738  $40,665  $68,355  $661,793 
Net change in unrealized appreciation (depreciation) for the year relating to those Level 3 assets that were still held by the Company at the end of the period $3,597  $(431) $99  $386  $11,837  $15,488 

 

Transfers and restructurings, if any, are recognized at the beginning of the period in which they occur. There were no transfers or restructurings in or out of Levels 1, 2 or 3 during the sixnine months ended August 31,November 30, 2021.

 

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of August 31,November 30, 2022 were as follows (dollars in thousands):

  Fair Value  Valuation Technique Unobservable Input Range Weighted Average* 
First lien term loans $793,011  Market Comparables Market Yield (%)  8.1% - 16.4%  10.7%
        Revenue Multiples (x)  3.0x - 8.0x  4.4x
Second lien term loans  23,662  Market Comparables Market Yield (%)  10.0% - 46.5%  26.1%
Unsecured term loans  16,841  Market Comparables Market Yield (%)  10.0% - 25.5%  12.6%
      Collateral Value Coverage Net Asset Value  100.0%  100.0%
Structured finance securities  32,327  Discounted Cash Flow Discount Rate (%)  13.0% - 18.0%  16.7%
        Recovery Rate (%)  35% - 70%  70.0%
        Prepayment Rate (%)  20.0%  20.0%
Equity interests  82,096  Enterprise Value Waterfall EBITDA Multiples (x)  4.0x - 28.6x  9.9x
        Revenue Multiples (x)  1.0x - 11.7x  6.1x
Total $947,937            

  Fair Value  Valuation Technique Unobservable Input Range Weighted
Average*
First lien term loans $804,242  Market Comparables Market Yield (%) 9.7% - 22.4%   12.4%
        Revenue Multiples (x) 4.1x - 4.6x 4.4x
        EBITDA Multiples (x) 14.5x – 16.0x 15.6x
Second lien term loans  23,780  Market Comparables Market Yield (%) 15.3% - 54.0%  

40.8%

        EBITDA Multiples (x) 5.7x  - 5.7x 5.7x
Unsecured term loans  20,435  Market Comparables Market Yield (%) 10.0% - 25.6%   12.2%
      Collateral Value Coverage Net Asset Value 100.0% 100.0%
Structured finance securities  38,900  Discounted Cash Flow Discount Rate (%) 13.0% - 22.0%  17.8%
        Recovery Rate (%) 35% - 70% 70.0%
        Prepayment Rate (%) 20.0% 20.0%
Equity interests  85,350  Enterprise Value Waterfall EBITDA Multiples (x) 5.0x - 26.6x 9.8x
        Revenue Multiples (x) 1.3x - 11.7x  6.4x
             
Total $972,707         

*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, 2022 were as follows (dollars in thousands):

  Fair Value  Valuation Technique Unobservable Input Range Weighted Average* 
First lien term loans $631,572  Market Comparables Market Yield (%)  6.0% - 11.3%  8.4%
        Revenue Multiples (x)  3.5x  3.5x
Second lien term loans  44,386  Market Comparables Market Yield (%)  8.9% - 32.9%  15.6%
        EBITDA Multiples (x)  7.5x  7.5x
Unsecured term loans  15,931  Market Comparables Market Yield (%)  22.3%  22.3%
        Net Asset Value  100.0%  100.0%
Structured finance securities  38,030  Discounted Cash Flow Discount Rate (%)  10.0% - 15.0%  14.2%
        Recovery Rate (%)  35.0% - 70.0%  70.0%
        Prepayment Rate (%)  20.0%  20.0%
Equity interests  75,632  Enterprise Value Waterfall EBITDA Multiples (x)  4.0x - 14.0x  9.7x
        Revenue Multiples (x)  0.5x - 38.3x  4.6x
        Third-party bid  100.0%  100.0%
Total $805,551            

  Fair Value  Valuation Technique Unobservable Input Range Weighted
Average*
First lien term loans $631,572  Market Comparables Market Yield (%) 6.0% - 11.3% 8.4%
        Revenue Multiples (x) 3.5x 3.5x
Second lien term loans  44,386  Market Comparables Market Yield (%) 8.9% - 32.9% 15.6%
        EBITDA Multiples (x) 7.5x 7.5x
Unsecured term loans  15,931  Market Comparables Market Yield (%) 22.3% 22.3%
      Collateral Value Coverage Net Asset Value 100.0% 100.0%
Structured finance securities  38,030  Discounted Cash Flow Discount Rate (%) 10.0% - 15.0% 14.2%
        Recovery Rate (%) 35.0% - 70.0% 70.0%
        Prepayment Rate (%) 20.0% 20.0%
Equity interests  75,632  Enterprise Value Waterfall EBITDA Multiples (x) 4.0x - 28.6x 9.3x
        Revenue Multiples (x) 1.0x - 11.7x 6.6x
        Third-party bid 100.0% 100.0%
Total $805,551         

*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 third-party bid or market quote in deriving a value, a significant increase (decrease) in the third-party bid or market quote, in isolation, would result in a significantly higher (lower) fair value measurement.

 

The composition of our investments as of August 31,November 30, 2022 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 $803,082   84.0% $793,011   83.0%
Second lien term loans  29,829   3.1   23,662   2.5 
Unsecured term loans  17,051   1.8   16,841   1.8 
Structured finance securities  39,489   4.1   32,327   3.4 
Equity interests  66,486   7.0   88,823   9.3 
Total $955,937   100.0% $954,664   100.0%

 

  Investments at
Amortized Cost		  Amortized Cost
Percentage of
Total
Portfolio		  Investments at
Fair Value		  Fair Value
Percentage of
Total Portfolio		 
First lien term loans $815,756   82.8% $804,242   81.9%
Second lien term loans  29,919   3.0   23,780   2.4 
Unsecured term loans  20,763   2.1   20,599   2.1 
Structured finance securities  50,737   5.1   38,900   4.0 
Equity interests  69,308   7.0   94,513   9.6 
Total $986,483   100.0% $982,034   100.0%


The composition of our investments as of February 28, 2022 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 $631,037   79.3% $631,572   77.3% $631,037   79.3% $631,572   77.3%
Second lien term loans  49,862   6.3   44,386   5.4   49,862   6.3   44,386   5.4 
Unsecured term loans  16,104   2.0   15,931   1.9   16,104   2.0   15,931   1.9 
Structured finance securities  41,648   5.2   38,030   4.7   41,648   5.2   38,030   4.7 
Equity interests  57,597   7.2   87,648   10.7   57,597   7.2   87,648   10.7 
Total $796,248   100.0% $817,567   100.0% $796,248   100.0% $817,567   100.0%

 


For loans and debt securities for which market quotations are not readily available, we determine their fair value based on third party indicative broker quotes, where available, or the inputs that a hypothetical market participant would use to value the security in a current hypothetical sale using a market comparables valuation technique. In applying the market comparables valuation technique, we determine the fair value based on such factors as market participant inputs 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 comparables technique is not sufficient or appropriate, we may use additional techniques such as an asset liquidation or expected recovery model.

 

For equity securities of portfolio companies and partnership interests, we determine the fair value using an enterprise value waterfall valuation technique. Under the enterprise value waterfall valuation technique, 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 techniques and factors based on the individual circumstances of the portfolio company in order to estimate the enterprise value. The techniques 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. For non-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 investmentinvestments in Saratoga CLO isand SLF 2022 are carried at fair value, which is based on a discounted cash flow valuation technique that utilizes prepayment, re-investment and loss inputs 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 and SLF 2022, when available, as determined by our Manager and recommended to our board of directors. Specifically, we use Intex cash flows, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO.CLO and SLF 2022. The cash flows use a set of inputs including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The inputs are based on available market data and projections provided by third parties as well as management estimates. We ran Intex models based on inputs about the refinanced Saratoga CLO’s structure and the SLF 2022 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 and SLF 2022 at August 31,November 30, 2022. The inputs at August 31,November 30, 2022 for the valuation model include:

 

●Default rate: 2%

 

●Recovery rate: 35% -70%– 70%

 

●Discount rate: 13%15.5% – 18%22%

 

●Prepayment rate: 20%

 

●Reinvestment rate / price: $97.00 for twelveeighteen months; then L+365bps / $99.00

 

Investment Concentration

 

Set forth is a brief description of each portfolio company in which the fair value of our investment represents greater than 5% of our total assets as of August 31, 2022.November 30, 2022, excluding Saratoga CLO and SLF 2022 (see Note 4 and Note 5 for more information on Saratoga CLO and SLF 2022, respectively).

Hema Terra Holding Company, LLC

 

Hematerra Holdings Company, LLC

HemaTerra Holding Company, LLC provides SaaS-based software solutions addressing complex supply chain issues across a variety of medical environments, including blood, plasma, tissue, implants and DNA sample management, to customers in blood centers, hospitals, pharmaceuticals, and law enforcement settings.


 

Buildout, Inc.

 

Buildout, Inc. provides SaaS-based real estate marketing and customer relationship management (“CRM”) software to commercial real estate (“CRE”) brokerages. Buildout provides a suite of software solutions brokers use to manage relationships, efficiently create and distribute marketing materials over a wide variety of channels, including direct mail, multiple listing websites, brokerage website, property specific websites and manage back office functions like commission calculations and broker productivity.

Artemis Wax Corp.

 

Artemis Wax Corporation is a U.S. based retail aggregator of European Wax Center (“EWC”) franchise locations with a concentration in the northeast. Founded in 2004, EWC is the largest U.S. body waxing national chain with more than 800 locations across the country.

 

Granite Comfort, LP

Granite Comfort, LP provides traditional service and replacement of HVAC / plumbing systems, as well as a rental model that is in the early stages of implementation.

 

Note 4. Investment in 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 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. A non-call period ending January 2020 was also added. Following this refinancing, the Saratoga CLO portfolio increased its aggregate principal amount from approximately $300.0 million 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 the Class F-R-2 and $7.5 million in aggregate principal amount of the Class G-R-2 notes tranches at par, with a coupon of 3M USD LIBOR plus 8.75% and 3M USD LIBOR plus 10.00%, respectively. As part of this refinancing, the Company also redeemed our existing $4.5 million in aggregate amount of the Class F notes tranche at par.

 

On February 11, 2020, the Company entered into an unsecured loan agreement with Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd. (“CLO 2013-1 Warehouse 2”), a wholly owned subsidiary Saratoga CLO.

 

On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This fourth Saratoga CLO refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. The non-call period was extended to February 2022. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million of the CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. At August 31, 2021, the outstanding receivable of $2.6 million was repaid in full.

 

On August 9, 2021, the Company exchanged its existing $17.9 million Class F-R-3 Notes for $8.5 million Class F-1-R-3 Notes and $9.4 million Class F-2-R-3 Notes at par. On August 11, 2021, the Company sold its Class F-1-R-3 Notes to third parties, resulting in a realized loss of $0.1 million.

 


 

 

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 the 2013-1 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 August 31,November 30, 2022 and August 31,November 30, 2021, we accrued management fee income of $0.8 million and $0.8 million, respectively, and interest income of $0.4$0.2 million and $1.3$1.1 million, respectively, from the subordinated notes of Saratoga CLO.

For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we accrued management fee income of $1.6$2.5 million and $1.6$2.4 million, respectively, and interest income of $1.0$1.2 million and $2.4$3.5 million, respectively, from the subordinated notes of Saratoga CLO.

As of August 31,November 30, 2022, the aggregate principal amounts of the Company’s investments in the subordinated notes and Class F-2-R-3 Notes of the Saratoga CLO was $111.0 million and $9.4 million, respectively, which had a corresponding fair value of $23.4$19.4 million and $8.9$8.5 million, respectively. 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 August 31,November 30, 2022, Saratoga CLO had investments with a principal balance of $653.4$653.3 million and a weighted average spread over LIBOR of 3.7%3.8% and had debt with a principal balance of $611.0 million with a weighted average spread over LIBOR of 2.2%. 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 August 31,November 30, 2022, the present value of the projected future cash flows of the subordinated notes was approximately $23.4$19.4 million, using a 18.0%22.0% discount rate. The Company’s total investment in the subordinate notes of Saratoga CLO is $57.8 million, which consists of investments of $30 million in January 2008, $13.8 million in December 2018 and $14.0 million in February 2021; to date, the Company has since received distributions of $76.1$76.7 million, management fees of $31.5$31.0 million and incentive fees of $1.2 million.

 

As of February 28, 2022, the Company determined that the fair value of its investment in the subordinated notes of Saratoga CLO was $28.7 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, 2022, the fair value of its investment in the Class F-R-3 Notes was $9.4 million. As of February 28, 2022, Saratoga CLO had investments with a principal balance of $660.2 million and a weighted average spread over LIBOR of 3.7% and had debt with a principal balance of $611.0 million with a weighted average spread over LIBOR of 2.2%. 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 February 28, 2022, the present value of the projected future cash flows of the subordinated notes was approximately $27.9$28.7 million, using a 15.0% discount rate.

 

Below is certain financial information from the separate financial statements of Saratoga CLO as of August 31,November 30, 2022 (unaudited) and February 28, 2022 and for the three and sixnine months ended August 31,November 30, 2022 (unaudited) and August 31,November 30, 2021 (unaudited).

 


 

 

Saratoga Investment Corp. CLO 2013-1, Ltd.

Statements of Assets and Liabilities

  November 30,
2022		  February 28,
2022		 
  (unaudited)    
ASSETS      
Investments at fair value      
Loans at fair value (amortized cost of $643,842,672 and $653,022,265, respectively) $592,897,897  $638,929,660 
Equities at fair value  (amortized cost of $0 and $0, respectively)  -   33,690 
Total investments at fair value (amortized cost of $643,842,672 and $653,022,265, respectively)  592,897,897   638,963,350 
Cash and cash equivalents  16,640,269   6,171,793 
Receivable from open trades  6,414,343   9,152,660 
Interest receivable (net of reserve of $358,730 and $0, respectively)  3,017,057   2,062,856 
Due from affiliate (See Note 7)  58,215   - 
Prepaid expenses and other assets  41,162   100,067 
Total assets $619,068,943  $656,450,726 
         
LIABILITIES        
Interest payable $4,502,328  $1,659,776 
Payable from open trades  13,817,809   18,794,627 
Accrued base management fee  72,763   72,510 
Accrued subordinated management fee  291,052   290,040 
Accounts payable and accrued expenses  156,006   58,716 
Saratoga Investment Corp. CLO 2013-1, Ltd. Notes:        
Class A-1-R-3 Senior Secured Floating Rate Notes  357,500,000   357,500,000 
Class A-2-R-3 Senior Secured Floating Rate Notes  65,000,000   65,000,000 
Class B-FL-R-3 Senior Secured Floating Rate Notes  60,500,000   60,500,000 
Class B-FXD-R-3 Senior Secured Fixed Rate Notes  11,000,000   11,000,000 
Class C-FL-R-3 Deferrable Mezzanine Floating Rate Notes  26,000,000   26,000,000 
Class C-FXD-R-3 Deferrable Mezzanine Fixed Rate Notes  6,500,000   6,500,000 
Class D-R-3 Deferrable Mezzanine Floating Rate Notes  39,000,000   39,000,000 
Discount on Class D-R-3 Notes  (250,168)  (268,301)
Class E-R-3 Deferrable Mezzanine Floating Rate Notes  27,625,000   27,625,000 
Discount on Class E-R-3 Notes  (2,598,967)  (2,787,348)
Class F-1-R-3 Notes Deferrable Junior Floating Rate Notes  8,500,000   8,500,000 
Class F-2-R-3 Notes Deferrable Junior Floating Rate Notes  9,375,000   9,375,000 
Deferred debt financing costs  (1,944,539)  (2,086,928)
Subordinated Notes  111,000,000   111,000,000 
Discount on Subordinated Notes  (41,105,442)  (44,084,883)
Total liabilities $694,940,842  $693,648,209 
         
Commitments and contingencies        
         
NET ASSETS        
Ordinary equity, par value $1.00, 250 ordinary shares authorized, 250 and 250 common shares issued and outstanding, respectively $250  $250 
Total distributable earnings (loss)  (75,872,149)  (37,197,733)
Total net assets  (75,871,899)  (37,197,483)
Total liabilities and net assets $619,068,943  $656,450,726 

See accompanying notes to financial statements.

 


  August 31,
2022		  February 28,
2022		 
  (unaudited)    
ASSETS      
Investments at fair value      
Loans at fair value (amortized cost of $644,334,357 and $653,022,265, respectively) $604,030,601  $638,929,660 
Equities at fair value  (amortized cost of $0 and $0, respectively)  -   33,690 
Total investments at fair value (amortized cost of $644,334,357 and $653,022,265, respectively)  604,030,601   638,963,350 
Cash and cash equivalents  11,877,748   6,171,793 
Receivable from open trades  4,213,956   9,152,660 
Interest receivable (net of reserve of $261,203 and $0, respectively)  2,794,158   2,062,856 
Due from affiliate (See Note 7)  25,209   - 
Prepaid expenses and other assets  56,209   100,067 
Total assets $622,997,881  $656,450,726 
         
LIABILITIES        
Interest payable $3,521,003  $1,659,776 
Payable from open trades  9,263,750   18,794,627 
Accrued base management fee  72,710   72,510 
Accrued subordinated management fee  290,841   290,040 
Accounts payable and accrued expenses  135,556   58,716 
Saratoga Investment Corp. CLO 2013-1, Ltd. Notes:        
Class A-1-R-3 Senior Secured Floating Rate Notes  357,500,000   357,500,000 
Class A-2-R-3 Senior Secured Floating Rate Notes  65,000,000   65,000,000 
Class B-FL-R-3 Senior Secured Floating Rate Notes  60,500,000   60,500,000 
Class B-FXD-R-3 Senior Secured Fixed Rate Notes  11,000,000   11,000,000 
Class C-FL-R-3 Deferrable Mezzanine Floating Rate Notes  26,000,000   26,000,000 
Class C-FXD-R-3 Deferrable Mezzanine Fixed Rate Notes  6,500,000   6,500,000 
Class D-R-3 Deferrable Mezzanine Floating Rate Notes  39,000,000   39,000,000 
Discount on Class D-R-3 Notes  (256,168)  (268,301)
Class E-R-3 Deferrable Mezzanine Floating Rate Notes  27,625,000   27,625,000 
Discount on Class E-R-3 Notes  (2,661,304)  (2,787,348)
Class F-1-R-3 Notes Deferrable Junior Floating Rate Notes  8,500,000   8,500,000 
Class F-2-R-3 Notes Deferrable Junior Floating Rate Notes  9,375,000   9,375,000 
Deferred debt financing costs  (1,992,002)  (2,086,928)
Subordinated Notes  111,000,000   111,000,000 
Discount on Subordinated Notes  (42,091,366)  (44,084,883)
Total liabilities $688,283,020  $693,648,209 
         
Commitments and contingencies        
         
NET ASSETS        
Ordinary equity, par value $1.00, 250 ordinary shares authorized, 250 and 250 common shares issued and outstanding, respectively $250  $250 
Total distributable earnings (loss)  (65,285,389)  (37,197,733)
Total net assets  (65,285,139)  (37,197,483)
Total liabilities and net assets $622,997,881  $656,450,726 

Saratoga Investment Corp. CLO 2013-1, Ltd.

Statements of Operations

(unaudited)

  For the three months ended  For the nine months ended 
  November 30, 2022  November 30, 2021  November 30, 2022  November 30, 2021 
INVESTMENT INCOME            
Total interest from investments $11,753,670  $7,866,198  $29,075,284  $15,613,938 
Interest from cash and cash equivalents  13,215   119   19,320   691 
Other income  26,224   200,320   141,828   517,377 
Total investment income  11,793,109   8,066,637   29,236,432   16,132,006 
                 
EXPENSES                
Interest and debt financing expenses  10,177,731   5,569,557   26,287,544   10,405,734 
Base management fee  163,651   162,925   490,249   326,571 
Subordinated management fee  654,604   651,697   1,960,994   1,306,283 
Professional fees  53,254   109,691   263,647   145,357 
Trustee expenses  64,579   121,329   197,407   121,329 
Other expense  93,097   54,156   244,402   113,939 
Total expenses  11,206,916   6,669,355   29,444,243   12,419,213 
NET INVESTMENT INCOME (LOSS)  586,193   1,397,282   (207,811)  3,712,793 
                 
REALIZED AND UNREALIZED LOSS ON INVESTMENTS                
Net realized gain (loss) from investments  (532,640)  175,669   (1,599,841)  (389,425)
Net change in unrealized appreciation (depreciation) on investments  (10,640,315)  (662,095)  (36,866,766)  (1,143,192)
Net realized and unrealized gain (loss) on investments  (11,172,955)  (486,426)  (38,466,607)  (1,532,617)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $(10,586,762) $910,856  $(38,674,418) $2,180,176 

 

See accompanying notes to financial statements

 


 

 

Saratoga Investment Corp. CLO 2013-1, Ltd.

Statements of Operations

(unaudited)

  For the three months ended  For the six months ended 
  August 31,
2022		  August 31,
2021		  

August 31,

2022

  

August 31,

2021

 
INVESTMENT INCOME            
Total interest from investments $9,176,167  $7,866,198  $17,321,614  $15,613,938 
Interest from cash and cash equivalents  6,105   119   6,105   691 
Other income  12,108   200,320   115,604   517,377 
Total investment income  9,194,380   8,066,637   17,443,323   16,132,006 
                 
EXPENSES                
Interest and debt financing expenses  8,577,449   5,569,557   16,109,813   10,405,734 
Base management fee  163,405   162,925   326,598   326,571 
Subordinated management fee  653,619   651,697   1,306,390   1,306,283 
Professional fees  129,229   109,691   210,393   145,357 
Trustee expenses  64,742   121,329   132,828   121,329 
Other expense  113,216   54,156   151,305   113,939 
Total expenses  9,701,660   6,669,355   18,237,327   12,419,213 
NET INVESTMENT INCOME (LOSS)  (507,280)  1,397,282   (794,004)  3,712,793 
                 
REALIZED AND UNREALIZED LOSS ON INVESTMENTS                
Net realized gain (loss) from investments  (1,144,858)  175,669   (1,067,201)  (389,425)
Net change in unrealized appreciation (depreciation) on investments  (1,544,463)  (662,095)  (26,226,451)  (1,143,192)
Net realized and unrealized gain (loss) on investments  (2,689,321)  (486,426)  (27,293,652)  (1,532,617)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $(3,196,601) $910,856  $(28,087,656) $2,180,176 

See accompanying notes to financial statements


Saratoga Investment Corp. CLO 2013-1, Ltd.

Schedule of Investments

August 31,November 30, 2022

(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 
19TH HOLDINGS GOLF, LLC Consumer goods: Durable Term Loan Loan 1M USD SOFR+  3.00%  0.50%  5.39% 2/7/2029 $500,000  $497,718  $465,000 
888 Acquisitions Limited Hotel, Gaming & Leisure Term Loan B Loan 6M USD SOFR+  5.25%  0.00%  8.28% 7/8/2028  2,000,000   1,702,661   1,723,340 
ADMI Corp. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+  2.75%  0.00%  5.27% 4/30/2025  1,920,276   1,916,024   1,803,734 
Adtalem Global Education Inc. Services: Business Term Loan B (02/21) Loan 1M USD LIBOR+  4.00%  0.75%  6.37% 8/11/2028  1,033,969   1,025,096   1,022,336 
Aegis Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  5.50%  1.00%  8.41% 5/9/2025  2,441,552   2,431,668   2,370,747 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (1/19) Loan 1M USD LIBOR+  2.75%  0.00%  5.13% 1/4/2026  1,476,058   1,470,109   1,439,156 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (09/20) Loan 1M USD LIBOR+  2.75%  0.75%  5.13% 1/4/2026  214,286   212,857   208,929 
AHEAD DB Holdings, LLC Services: Business Term Loan (04/21) Loan 3M USD LIBOR+  3.75%  0.75%  6.01% 10/18/2027  2,970,000   2,878,591   2,891,295 
AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense Term Loan B (USD) Loan 6M USD LIBOR+  3.50%  1.00%  5.05% 1/18/2027  1,462,072   1,457,624   1,430,477 
Air Canada Transportation: Consumer Term Loan B (07/21) Loan 3M USD LIBOR+  3.50%  0.75%  6.42% 8/11/2028  2,000,000   1,851,463   1,930,360 
AIS HoldCo, LLC Services: Business Term Loan Loan 3M USD LIBOR+  5.00%  0.00%  7.81% 8/15/2025  4,789,642   4,686,035   4,622,004 
Alchemy Copyrights, LLC Media: Diversified & Production Term Loan B Loan 1M USD LIBOR+  3.00%  0.50%  5.37% 3/10/2028  491,269   488,557   483,900 
Alchemy US Holdco 1, LLC Metals & Mining Term Loan Loan 1M USD LIBOR+  5.50%  0.00%  5.60% 10/10/2025  1,654,803   1,642,240   1,582,819 
AlixPartners, LLP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan 1M USD LIBOR+  2.75%  0.50%  5.27% 2/4/2028  246,875   246,389   240,878 
Alkermes, Inc. Healthcare & Pharmaceuticals Term Loan B (3/21) Loan 1M USD LIBOR+  2.50%  0.50%  4.88% 3/12/2026  2,137,039   2,121,720   2,046,214 
Allen Media, LLC Media: Diversified & Production Term Loan (7/21) Loan 3M USD SOFR+  5.50%  0.00%  7.70% 2/10/2027  4,416,858   4,388,245   3,854,812 
Alliant Holdings Intermediate, LLC Banking, Finance, Insurance & Real Estate Term Loan B4 Loan 1M USD LIBOR+  3.50%  0.50%  5.88% 11/5/2027  992,500   991,536   964,710 
Allied Universal Holdco LLC Services: Business Term Loan 4/21 Loan 1M USD LIBOR+  3.75%  0.50%  6.27% 5/12/2028  1,985,000   1,976,181   1,890,971 
Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate Term Loan B (03/18) Loan 3M USD LIBOR+  4.00%  1.00%  6.25% 4/3/2024  1,223,297   1,220,817   1,010,138 
Altium Packaging LLC Containers, Packaging & Glass Term Loan (01/21) Loan 1M USD LIBOR+  2.75%  0.50%  5.13% 1/29/2028  493,750   491,725   477,397 
American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan Loan 1M USD LIBOR+  4.50%  1.00%  6.88% 4/6/2024  3,012,861   3,011,294   2,967,668 
American Trailer World Corp Automotive Term Loan Loan 1M USD SOFR+  3.75%  0.75%  6.31% 3/3/2028  1,980,000   1,975,170   1,843,380 
AmWINS Group, LLC Banking, Finance, Insurance & Real Estate Term Loan 2/21 Loan 1M USD LIBOR+  2.25%  0.75%  4.77% 2/17/2028  1,970,012   1,949,039   1,921,214 
Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+  3.75%  0.00%  6.00% 8/11/2025  962,500   960,273   779,625 
Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan 3M USD LIBOR+  2.75%  1.00%  5.10% 12/7/2023  472,625   472,098   374,437 
ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+  6.00%  0.75%  8.52% 11/19/2027  2,985,000   2,933,021   2,858,138 
AP Core Holdings II LLC High Tech Industries Term Loan B2 Loan 1M USD LIBOR+  5.50%  0.75%  8.02% 9/1/2027  500,000   493,572   472,915 
AP Core Holdings II LLC High Tech Industries Term Loan B1 Loan 1M USD LIBOR+  5.50%  0.75%  8.02% 9/1/2027  1,925,000   1,900,214   1,817,200 
APEX GROUP TREASURY LIMITED Banking, Finance, Insurance & Real Estate Term Loan Incremental Loan 1M USD SOFR+  5.00%  0.50%  6.73% 7/27/2028  500,000   467,500   488,125 
APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan 1M USD LIBOR+  2.50%  0.00%  5.02% 10/1/2026  1,928,237   1,921,239   1,896,305 
APLP Holdings Limited Partnership Energy: Electricity Term Loan B (3/21) Loan 3M USD LIBOR+  3.75%  1.00%  6.00% 5/14/2027  577,859   573,198   571,000 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.75%  0.00%  5.27% 5/15/2026  2,954,315   2,925,168   2,836,142 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 (2/21) Loan 1M USD LIBOR+  3.50%  0.50%  5.94% 3/6/2028  987,500   979,308   948,000 
AppLovin Corporation High Tech Industries Term Loan B Loan 3M USD LIBOR+  3.25%  0.00%  5.50% 8/15/2025  984,694   984,694   964,646 


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 
AppLovin Corporation High Tech Industries Term Loan (10/21) Loan 3M USD LIBOR+  3.00%  0.50%  5.25% 10/21/2028  1,496,250   1,492,933   1,452,305 
Aramark Corporation Services: Consumer Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  4.27% 1/15/2027  2,331,250   2,274,480   2,269,472 
Aramark Corporation Services: Consumer Term Loan B (4/21) Loan 1M USD LIBOR+  2.50%  0.00%  5.02% 4/1/2028  1,753,715   1,746,448   1,740,562 
ARC FALCON I INC. (a) Chemicals, Plastics, & Rubber Delayed Draw Term Loan Loan N/A  N/A   N/A   N/A  9/29/2028  -   (556)  (7,112)
ARC FALCON I INC. Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+  3.75%  0.50%  6.27% 9/23/2028  868,248   864,411   819,774 
Arches Buyer Inc. Services: Consumer Term Loan B Loan 1M USD LIBOR+  3.25%  0.50%  5.77% 12/6/2027  1,484,848   1,476,025   1,399,782 
Arctic Glacier U.S.A., Inc. Beverage, Food & Tobacco Term Loan (3/18) Loan 3M USD LIBOR+  3.50%  1.00%  4.51% 3/20/2024  -   6,733   - 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan 1M USD SOFR+  4.25%  0.00%  6.71% 10/1/2025  1,926,183   1,922,154   1,880,437 
ASP BLADE HOLDINGS, INC. Capital Equipment Term Loan Loan 1M USD LIBOR+  4.00%  0.50%  6.52% 10/7/2028  99,529   99,091   92,705 
Asplundh Tree Expert, LLC Services: Business Term Loan 2/21 Loan 1M USD LIBOR+  1.75%  0.00%  4.27% 9/7/2027  982,500   978,862   966,947 
AssuredPartners Capital, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (2/20) Loan 1M USD LIBOR+  3.50%  0.00%  6.02% 2/12/2027  994,898   991,383   966,543 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Incremental Term Loan (7/21) Loan 1M USD LIBOR+  3.50%  0.50%  6.02% 2/12/2027  990,000   990,000   960,607 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+  3.50%  0.50%  5.96% 2/12/2027  498,750   497,674   484,566 
ASTRO ONE ACQUISITION CORPORATION Consumer goods: Durable Term Loan Loan 3M USD LIBOR+  5.50%  0.75%  7.75% 9/15/2028  2,985,000   2,958,780   2,497,460 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan 1M USD LIBOR+  3.25%  0.00%  5.77% 12/18/2026  2,979,985   2,970,313   2,724,570 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B10 Loan 1M USD SOFR+  4.00%  0.00%  6.40% 8/19/2028  2,000,000   1,900,276   1,863,340 
ATHENAHEALTH GROUP INC. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (02/22) Loan  N/A  N/A   N/A   N/A  2/15/2029  -   -   (9,783)
ATHENAHEALTH GROUP INC. Healthcare & Pharmaceuticals Term Loan B (2/22) Loan 1M USD SOFR+  3.50%  0.50%  5.80% 2/15/2029  1,282,609   1,276,829   1,224,891 
Avast Software S.R.O. (Sybil Finance) High Tech Industries Term Loan (Sybil Software) Loan 3M USD LIBOR+  1.75%  0.00%  4.00% 3/22/2028  1,875,000   1,871,036   1,865,231 
Avaya, Inc. Telecommunications Term Loan B1 Loan 1M USD LIBOR+  4.25%  0.00%  6.64% 12/15/2027  1,755,766   1,748,093   992,008 
Avaya, Inc. Telecommunications Term Loan B-2 (2/21) Loan 1M USD LIBOR+  4.00%  0.00%  6.39% 12/15/2027  1,000,000   1,000,000   559,380 
Avison Young (Canada) Inc Services: Business Term Loan Loan 3M USD LIBOR+  5.75%  0.00%  8.00% 1/31/2026  3,388,438   3,357,091   3,219,016 
Avison Young (Canada) Inc Services: Business Term Loan (08/22) Loan 1M USD SOFR+  7.00%  0.00%  9.49% 1/31/2026  750,000   705,347   716,250 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3 Loan 1M USD LIBOR+  1.75%  0.75%  4.12% 1/15/2025  1,000,000   916,194   983,330 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 (7/21) Loan 1M USD LIBOR+  2.25%  0.50%  4.62% 12/1/2027  492,500   488,674   483,512 
AZURITY PHARMACEUTICALS, INC. Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+  6.00%  0.75%  8.31% 9/20/2027  487,500   474,379   433,875 
B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  5.02% 10/10/2026  706,458   702,199   673,121 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan 1M USD LIBOR+  1.75%  0.00%  4.27% 11/19/2026  1,462,500   1,434,644   1,418,318 
BAKELITE UK INTERMEDIATE LTD. Chemicals, Plastics, & Rubber Term Loan Loan 3M USD SOFR+  4.00%  0.50%  6.16% 2/1/2029  1,000,000   995,200   955,000 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  3.50%  0.50%  5.88% 10/14/2027  1,232,550   1,220,752   1,200,196 
Bausch Health Companies Inc. Healthcare & Pharmaceuticals Term Loan B (1/22) Loan 1M USD SOFR+  5.25%  0.50%  7.66% 2/1/2027  2,000,000   1,795,000   1,590,000 
BCPE Empire Holdings, Inc. Services: Business Term Loan Amendment 3 Loan 1M USD SOFR+  4.63%  0.00%  7.18% 6/11/2026  498,750   481,970   482,541 
Belfor Holdings Inc. Services: Consumer Term Loan Loan 1M USD LIBOR+  4.00%  0.00%  6.52% 4/6/2026  246,819   246,653   243,117 


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 
Belfor Holdings Inc. Services: Consumer Term Loan B-2 (3/22) Loan 1M USD SOFR+  4.25%  0.50%  6.71% 4/6/2026  1,000,000   972,460   985,000 
Belron Finance US LLC Automotive Term Loan B (3/21) Loan 3M USD LIBOR+  2.50%  0.50%  5.38% 4/13/2028  1,975,000   1,958,729   1,942,294 
Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Term Loan Loan 1M USD SOFR+  3.25%  0.50%  5.68% 1/24/2029  2,000,000   1,998,507   1,914,280 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan (6/21) Loan 1M USD LIBOR+  2.75%  0.50%  5.27% 4/23/2026  1,472,597   1,464,443   1,424,738 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.25%  0.00%  4.77% 4/23/2026  984,810   979,466   951,573 
Blucora, Inc. Services: Consumer Term Loan (11/17) Loan 3M USD LIBOR+  4.00%  1.00%  6.25% 5/22/2024  2,287,052   2,283,201   2,269,899 
Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber Term Loan (2/21) Loan 3M USD LIBOR+  2.50%  0.00%  4.76% 3/4/2028  987,500   985,520   957,875 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan 1M USD LIBOR+  2.00%  0.00%  4.52% 5/24/2027  1,462,549   1,455,033   1,408,801 
Boxer Parent Company, Inc. High Tech Industries Term Loan (2/21) Loan 1M USD LIBOR+  3.75%  0.00%  6.12% 10/2/2025  519,820   519,820   500,675 
Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  4.25%  0.00%  6.54% 9/5/2025  962,500   960,298   940,844 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Term Loan B-3 Loan 1M USD LIBOR+  3.50%  0.00%  5.94% 3/5/2026  987,500   987,500   954,419 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan 1M USD LIBOR+  3.00%  0.00%  5.52% 1/22/2027  2,963,947   2,959,109   2,870,256 
Brookfield WEC Holdings Inc. Energy: Electricity Term Loan (1/21) Loan 1M USD LIBOR+  2.75%  0.50%  5.27% 8/1/2025  1,470,075   1,471,797   1,433,147 
BROWN GROUP HOLDING, LLC Aerospace & Defense Term Loan B-2 Loan 1M USD SOFR+  3.75%  0.00%  6.21% 6/8/2029  500,000   487,659   492,410 
Buckeye Partners, L.P. Utilities: Oil & Gas Term Loan (1/21) Loan 1M USD LIBOR+  2.25%  0.00%  4.62% 11/1/2026  1,960,138   1,949,299   1,927,168 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+  3.50%  0.50%  6.02% 3/31/2028  2,475,000   2,454,497   2,376,000 
Callaway Golf Company Retail Term Loan B Loan 1M USD LIBOR+  4.50%  0.00%  7.02% 1/4/2026  678,750   671,259   676,490 
Camping World, Inc. Retail Term Loan B (5/21) Loan 1M USD LIBOR+  2.50%  0.75%  4.99% 6/5/2028  2,500,000   2,263,750   2,332,825 
CareerBuilder, LLC Services: Business Term Loan Loan 3M USD LIBOR+  6.75%  1.00%  9.00% 7/31/2023  5,393,388   5,296,559   3,437,152 
CareStream Health, Inc. Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+  4.00%  0.00%  6.52% 7/18/2026  982,278   975,165   958,949 
Casa Systems, Inc Telecommunications Term Loan Loan 3M USD LIBOR+  4.00%  1.00%  6.25% 12/20/2023  1,383,625   1,380,672   1,170,893 
Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan 1M USD LIBOR+  3.75%  0.00%  6.27% 1/27/2027  1,971,757   1,961,464   1,651,347 
CBI BUYER, INC. Consumer goods: Durable Term Loan Loan 1M USD LIBOR+  3.25%  0.50%  5.65% 1/6/2028  2,984,962   2,816,427   2,703,868 
CCC Intelligent Solutions Inc. Services: Business Term Loan B Loan 3M USD LIBOR+  2.25%  0.50%  4.50% 9/16/2028  248,750   248,206   243,360 
CCI Buyer, Inc Telecommunications Term Loan Loan 3M USD SOFR+  4.00%  0.75%  6.05% 12/17/2027  246,875   244,910   237,000 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+  3.75%  0.75%  6.01% 3/5/2028  987,500   983,313   957,875 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+  5.50%  0.00%  8.02% 9/25/2025  2,412,500   2,400,790   2,346,156 
CDK GLOBAL, INC. High Tech Industries Term Loan B Loan 3M USD SOFR+  4.50%  0.50%  6.61% 7/6/2029  1,000,000   970,484   973,470 
Cengage Learning, Inc. Media: Advertising, Printing & Publishing Term Loan B (6/21) Loan 6M USD LIBOR+  4.75%  1.00%  7.81% 7/14/2026  2,977,500   2,953,751   2,808,408 
CENTURI GROUP, INC. Construction & Building Term Loan B Loan 1M USD LIBOR+  2.50%  0.50%  5.02% 8/27/2028  883,330   875,628   859,868 
CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan 1M USD LIBOR+  2.25%  0.00%  4.77% 3/15/2027  3,909,849   3,904,921   3,675,258 
Charlotte Buyer, Inc. Services: Business Term Loan B Loan 3M USD SOFR+  5.25%  0.00%  7.98% 2/3/2028  1,500,000   1,395,658   1,436,250 
Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  4.28% 4/3/2025  910,346   880,516   886,450 
Churchill Downs Incorporated Hotel, Gaming & Leisure Term Loan B1 (3/21) Loan 1M USD LIBOR+  2.00%  0.00%  4.53% 3/17/2028  493,750   492,743   483,875 
CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing USD Term Loan Loan 1M USD LIBOR+  3.50%  0.50%  6.02% 5/17/2028  1,990,000   1,895,264   1,895,475 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan 1M USD SOFR+  2.50%  0.00%  5.07% 2/2/2028  4,937,500   4,933,271   4,823,345 


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 
Clarios Global LP Automotive Term Loan B1 Loan 1M USD LIBOR+  3.25%  0.00%  5.77% 4/30/2026  1,267,812   1,260,246   1,232,313 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B-1 (11/21) Loan 1M USD SOFR+  4.50%  0.50%  6.89% 8/9/2026  3,457,336   3,437,160   3,362,259 
CLYDESDALE ACQUISITION HOLDINGS, INC. Containers, Packaging & Glass Term Loan B Loan 1M USD SOFR+  4.18%  0.50%  6.73% 4/13/2029  1,500,000   1,464,024   1,445,370 
Cole Haan Consumer goods: Non-durable Term Loan B Loan 1M USD LIBOR+  5.50%  0.00%  8.02% 2/7/2025  900,000   895,403   801,000 
Columbus McKinnon Corporation Capital Equipment Term Loan (4/21) Loan 3M USD LIBOR+  2.75%  0.50%  5.06% 5/14/2028  468,182   467,216   461,159 
Conduent, Inc. Services: Business Term Loan B Loan 1M USD LIBOR+  4.25%  0.50%  6.77% 10/16/2028  995,000   986,079   961,001 
Connect Finco SARL Telecommunications Term Loan (1/21) Loan 1M USD LIBOR+  3.50%  1.00%  6.03% 12/11/2026  2,932,500   2,820,172   2,840,859 
Consolidated Communications, Inc. Telecommunications Term Loan B Loan 1M USD LIBOR+  3.50%  0.75%  6.00% 10/2/2027  2,714,005   2,502,915   2,417,174 
CORAL-US CO-BORROWER LLC Telecommunications Term Loan B-5 Loan 1M USD LIBOR+  2.25%  0.00%  4.64% 1/31/2028  4,000,000   3,987,745   3,843,000 
Corelogic, Inc. Services: Business Term Loan (4/21) Loan 1M USD LIBOR+  3.50%  0.50%  6.02% 6/2/2028  2,481,250   2,470,591   2,124,570 
Cortes NP Acquisition Corp (Vertiv) Capital Equipment Term Loan 2/21 Loan 1M USD LIBOR+  2.75%  0.00%  5.11% 3/2/2027  1,970,000   1,970,000   1,895,298 
COWEN INC. Banking, Finance, Insurance & Real Estate Term Loan Loan 6M USD LIBOR+  3.25%  0.00%  4.63% 3/24/2028  3,947,443   3,926,096   3,937,575 
Creative Artists Agency, LLC Media: Diversified & Production Term Loan B2 (6/22) Loan 1M USD SOFR+  4.25%  1.00%  6.58% 11/27/2026  500,000   481,849   496,250 
CROCS INC Consumer goods: Durable Term Loan Loan 6M USD SOFR+  3.50%  0.50%  4.45% 2/20/2029  2,992,500   2,876,557   2,876,541 
Cross Financial Corp Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan 1M USD LIBOR+  4.00%  0.75%  6.56% 9/15/2027  495,000   494,516   485,100 
Crown Subsea Communications Holding, Inc. Construction & Building Term Loan (4/21) Loan 1M USD LIBOR+  4.75%  0.75%  7.12% 4/27/2027  2,404,110   2,384,446   2,339,992 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B (03/17) Loan 1M USD LIBOR+  2.25%  0.00%  4.64% 7/15/2025  1,923,858   1,911,748   1,860,140 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+  2.25%  0.00%  4.64% 1/15/2026  482,500   481,950   466,418 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan 1M USD LIBOR+  2.50%  0.00%  4.89% 4/15/2027  487,500   487,500   469,321 
CTS Midco, LLC High Tech Industries Term Loan B Loan 3M USD LIBOR+  6.00%  1.00%  8.81% 11/2/2027  1,970,000   1,924,044   1,871,500 
Daseke Inc Transportation: Cargo Term Loan 2/21 Loan 1M USD LIBOR+  4.00%  0.75%  6.37% 3/5/2028  1,481,250   1,475,172   1,433,732 
Dave & Buster’s Inc. Hotel, Gaming & Leisure Term Loan B (04/22) Loan 1M USD SOFR+  5.00%  0.50%  7.56% 6/29/2029  1,000,000   950,693   975,830 
DCert Buyer, Inc. High Tech Industries Term Loan Loan 3M USD SOFR+  4.00%  0.00%  6.90% 10/16/2026  1,477,330   1,477,330   1,435,064 
Dealer Tire, LLC Automotive Term Loan B-1 Loan N/A  N/A   N/A   N/A  12/12/2025  -   3,271   - 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B Loan 1M USD LIBOR+  2.25%  0.00%  4.77% 3/31/2025  6,282,700   6,247,776   6,121,172 
DexKo Global, Inc. (Dragon Merger) Automotive Term Loan (9/21) Loan 3M USD LIBOR+  3.75%  0.50%  6.00% 10/4/2028  997,500   993,803   952,613 
Diamond Sports Group, LLC Media: Broadcasting & Subscription 1st Priority Term Loan Loan 1M USD SOFR+  8.00%  1.00%  10.39% 5/25/2026  344,068   334,615   323,317 
Diamond Sports Group, LLC Media: Broadcasting & Subscription Second Lien Term Loan Loan 1M USD SOFR+  3.25%  0.00%  5.64% 8/24/2026  3,391,925   2,990,484   615,397 
DIRECTV FINANCING, LLC Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+  5.00%  0.75%  7.52% 8/2/2027  3,730,000   3,698,538   3,561,218 
DISCOVERY PURCHASER CORPORATION Chemicals, Plastics, & Rubber Term Loan Loan 1M USD SOFR+  4.38%  0.50%  6.66% 8/4/2029  1,500,000   1,380,000   1,404,375 
Dispatch Acquisition Holdings, LLC Environmental Industries Term Loan B (3/21) Loan 3M USD LIBOR+  4.25%  0.75%  6.50% 3/25/2028  495,000   490,975   455,400 
DOMTAR CORPORATION Forest Products & Paper Term Loan 9/21 Loan 1M USD LIBOR+  5.50%  0.75%  7.88% 11/30/2028  836,442   828,718   794,101 


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 
DRI HOLDING INC. Media: Advertising, Printing & Publishing Term Loan (12/21) Loan 1M USD LIBOR+  5.25%  0.50%  7.77% 12/15/2028  3,992,500   3,840,856   3,528,372 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan (2/21) Loan 1M USD LIBOR+  3.75%  0.00%  6.27% 3/1/2028  6,435,000   6,393,630   6,187,639 
DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan 1M USD LIBOR+  2.75%  0.00%  5.27% 8/21/2025  3,856,286   3,847,221   3,750,239 
EAB Global, Inc. Services: Business Term Loan (08/21) Loan 3M USD LIBOR+  3.50%  0.50%  6.31% 8/16/2028  995,000   990,615   955,449 
Echo Global Logistics, Inc. Services: Business Term Loan Loan 1M USD LIBOR+  3.50%  0.50%  6.02% 11/23/2028  1,995,000   1,990,717   1,876,298 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan 1M USD LIBOR+  3.50%  0.75%  6.02% 4/7/2028  2,199,656   2,192,530   2,106,963 
Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan 1M USD LIBOR+  4.25%  0.00%  6.77% 6/26/2025  1,898,396   1,898,396   1,779,746 
ELECTRON BIDCO INC. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+  3.00%  0.50%  5.52% 11/1/2028  498,750   496,532   485,503 
ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan 1M USD LIBOR+  6.50%  0.00%  9.02% 12/14/2025  2,175,269   2,112,860   2,113,643 
Embecta Corp Healthcare & Pharmaceuticals Term Loan B Loan 3M USD SOFR+  3.00%  0.50%  5.05% 3/30/2029  618,016   614,508   603,079 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan (3/21) Loan 1M USD LIBOR+  5.00%  0.75%  9.50% 3/27/2028  2,335,285   2,327,697   2,034,617 
Endure Digital, Inc. High Tech Industries Term Loan B Loan 1M USD LIBOR+  3.50%  0.75%  5.87% 2/10/2028  2,475,000   2,465,018   2,315,684 
Envision Healthcare Corporation Healthcare & Pharmaceuticals Term Loan B (06/18) Loan 2M USD LIBOR+  3.75%  0.00%  6.56% 10/10/2025  4,819,794   4,815,720   1,247,893 
EOS U.S. FINCO LLC Transportation: Cargo Term Loan Loan 1M USD SOFR+  6.00%  0.50%  8.28% 8/3/2029  1,000,000   920,000   950,000 
Equiniti Group PLC Services: Business Term Loan B Loan 3M USD LIBOR+  4.50%  0.50%  6.75% 12/11/2028  995,000   986,049   975,100 
EyeCare Partners, LLC Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  3.75%  0.00%  6.00% 2/18/2027  1,958,020   1,957,907   1,817,454 
Finco I LLC Banking, Finance, Insurance & Real Estate Term Loan B (9/20) Loan 1M USD LIBOR+  2.50%  0.00%  5.02% 6/27/2025  2,830,950   2,826,428   2,798,224 
First Brands Group, LLC Automotive 1st Lien Term Loan (3/21) Loan 6M USD SOFR+  5.00%  1.00%  8.37% 3/30/2027  4,937,500   4,872,354   4,772,390 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan 3M USD LIBOR+  2.50%  0.00%  4.75% 2/1/2027  5,173,392   5,159,258   4,942,452 
First Student Bidco Inc. Transportation: Consumer Term Loan B Loan 3M USD LIBOR+  3.00%  0.50%  5.23% 7/21/2028  726,740   722,197   697,671 
First Student Bidco Inc. Transportation: Consumer Term Loan C Loan 3M USD LIBOR+  3.00%  0.50%  5.23% 7/21/2028  269,608   267,922   258,824 
Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan 1M USD LIBOR+  3.25%  1.00%  5.77% 4/18/2025  1,330,058   1,326,257   1,245,826 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Term Loan (1/20) Loan 1M USD LIBOR+  2.00%  0.00%  4.52% 7/3/2024  492,308   491,986   484,716 
Franchise Group, Inc. Services: Consumer First Out Term Loan Loan 3M USD LIBOR+  4.75%  0.75%  6.50% 3/10/2026  799,104   793,201   774,467 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  2.25%  0.00%  4.81% 8/1/2025  4,331,233   4,314,733   4,255,436 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan 1M USD LIBOR+  2.25%  0.00%  4.77% 1/29/2027  1,960,000   1,956,965   1,885,677 
Garrett LX III S.a r.l. Automotive Dollar Term Loan Loan 3M USD LIBOR+  3.25%  0.50%  6.06% 4/30/2028  1,488,750   1,482,578   1,455,253 
Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan 3M USD LIBOR+  3.00%  0.50%  5.81% 12/31/2027  2,341,715   2,326,803   2,296,052 
General Nutrition Centers, Inc. Retail Second Lien Term Loan Loan 1M USD LIBOR+  6.00%  0.00%  8.39% 10/7/2026  365,225   365,225   332,355 
Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan 3M USD LIBOR+  2.00%  0.00%  4.25% 12/30/2026  1,466,250   1,461,603   1,432,922 
GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.50%  0.00%  2.96% 8/27/2025  3,093,297   2,685,635   3,041,732 
Global Tel*Link Corporation Telecommunications Term Loan B Loan 3M USD LIBOR+  4.25%  0.00%  7.06% 11/29/2025  4,923,145   4,755,928   4,523,140 


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 
Go Daddy Operating Company, LLC High Tech Industries Term Loan 2/21 Loan 1M USD LIBOR+  2.00%  0.00%  4.37% 8/10/2027  1,969,849   1,969,849   1,932,501 
GOLDEN WEST PACKAGING GROUP LLC Forest Products & Paper Term Loan (11/21) Loan 1M USD LIBOR+  5.25%  0.75%  7.62% 12/1/2027  1,987,500   1,969,794   1,927,875 
Graham Packaging Co Inc Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD LIBOR+  3.00%  0.75%  5.52% 8/7/2027  967,415   962,087   943,230 
Great Outdoors Group, LLC Retail Term Loan B2 Loan 1M USD LIBOR+  3.75%  0.75%  6.27% 3/6/2028  985,056   980,871   951,564 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+  3.25%  0.00%  6.32% 4/12/2024  2,844,231   2,832,362   2,773,125 
Griffon Corporation Consumer goods: Durable Term Loan B Loan 1M USD SOFR+  2.50%  0.50%  4.98% 1/24/2029  155,625   155,277   151,085 
Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Amendment 5 Term Loan Loan 1M USD LIBOR+  2.50%  0.50%  5.02% 2/24/2028  3,851,241   3,848,423   3,780,224 
Harbor Freight Tools USA, Inc. Retail Term Loan B (06/21) Loan 1M USD LIBOR+  2.75%  0.50%  5.27% 10/19/2027  3,456,030   3,436,409   3,294,392 
Harland Clarke Holdings Corp. Media: Advertising, Printing & Publishing Term Loan (08/21) Loan 3M USD LIBOR+  7.75%  1.00%  10.00% 6/16/2026  1,221,522   1,219,887   917,840 
Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan 1M USD LIBOR+  3.75%  1.00%  6.27% 6/3/2024  212,687   212,626   199,187 
Hillman Group Inc. (The) (New) (a) Consumer goods: Durable Delayed Draw Term Loan (2/21) Loan 1M USD LIBOR+  2.75%  0.50%  5.19% 7/14/2028  67,004   67,004   41,703 
Hillman Group Inc. (The) (New) Consumer goods: Durable Term Loan B-1 (2/21) Loan 1M USD LIBOR+  2.75%  0.50%  5.19% 7/14/2028  3,496,783   3,489,827   3,391,879 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan 1M USD LIBOR+  2.50%  0.00%  5.02% 8/18/2025  3,530,000   3,522,471   3,426,324 
Holley Purchaser, Inc Automotive Term Loan (11/21) Loan 3M USD LIBOR+  3.75%  0.75%  6.71% 11/17/2028  2,329,821   2,320,465   2,185,372 
Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 1M USD LIBOR+  3.25%  0.75%  5.81% 11/12/2027  2,163,171   2,154,084   2,104,852 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan (3/21) Loan 3M USD SOFR+  3.00%  0.00%  6.16% 3/17/2028  5,925,000   5,876,263   5,451,000 
Idera, Inc. High Tech Industries Term Loan (02/21) Loan 1M USD LIBOR+  3.75%  0.75%  6.13% 3/2/2028  4,835,595   4,825,855   4,660,305 
IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/21) Loan 1M USD LIBOR+  3.75%  0.50%  6.27% 11/1/2028  1,990,000   1,981,214   1,924,091 
INDY US BIDCO, LLC Services: Business Term Loan (11/21) Loan 1M USD LIBOR+  3.75%  0.00%  6.27% 3/6/2028  2,226,922   2,226,557   2,124,862 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber Term Loan (1/21) Loan 1M USD LIBOR+  2.75%  0.50%  5.27% 1/29/2026  1,990,000   1,931,622   1,938,598 
Informatica Inc. High Tech Industries Term Loan B (10/21) Loan 1M USD LIBOR+  2.75%  0.00%  5.31% 10/27/2028  498,750   498,239   485,658 
Ingram Micro Inc. High Tech Industries Term Loan Loan 3M USD LIBOR+  3.50%  0.50%  5.75% 6/30/2028  1,485,000   1,472,113   1,425,600 
Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan 1M USD LIBOR+  4.00%  1.00%  6.52% 5/1/2024  3,368,401   3,335,107   3,251,349 
Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan 1M USD LIBOR+  3.25%  0.00%  5.77% 2/4/2027  488,750   487,133   478,364 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable Term Loan 4/21 Loan 6M USD LIBOR+  5.00%  0.75%  7.08% 4/7/2028  4,197,850   4,178,402   3,211,355 
INSTRUCTURE HOLDINGS, INC. High Tech Industries Term Loan B Loan 6M USD LIBOR+  2.75%  0.50%  6.12% 10/30/2028  498,750   497,660   488,775 
Isagenix International, LLC Beverage, Food & Tobacco Term Loan Loan 3M USD LIBOR+  5.75%  1.00%  7.93% 6/14/2025  2,330,036   2,308,136   1,048,516 
Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+  3.50%  0.00%  5.88% 3/14/2025  2,941,816   2,926,353   2,741,419 
J Jill Group, Inc Retail Priming Term Loan Loan 3M USD LIBOR+  5.00%  1.00%  7.81% 5/8/2024  1,564,303   1,563,639   1,433,292 
Jane Street Group Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 1M USD LIBOR+  2.75%  0.00%  5.27% 1/31/2028  3,940,000   3,935,292   3,853,005 
Journey Personal Care Corp. Consumer goods: Non-durable Term Loan B Loan 3M USD LIBOR+  4.25%  0.75%  6.50% 3/1/2028  990,000   985,806   675,675 


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 
JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+  5.50%  1.00%  8.31% 11/15/2025  4,019,089   3,995,346   3,223,872 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Term Loan (1/21) (USD) Loan 6M USD LIBOR+  4.75%  0.50%  5.55% 2/12/2026  1,481,250   1,476,161   1,356,573 
Kodiak BP, LLC Construction & Building Term Loan Loan 3M USD LIBOR+  3.25%  0.75%  5.50% 3/13/2028  493,750   492,380   469,063 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan 1M USD LIBOR+  3.50%  0.50%  5.94% 9/1/2027  493,769   484,453   481,425 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Third Out PIK Term Loan Loan 3M USD LIBOR+  1.50%  1.25%  4.31% 9/25/2025  839,106   588,664   693,663 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan Fixed  0.00%  0.00%  13.25% 9/27/2027  928,253   303,783   595,632 
Lealand Finance Company B.V. (d) Energy: Oil & Gas Exit Term Loan Loan 1M USD LIBOR+  1.00%  0.00%  3.52% 6/30/2025  339,918   339,918   170,809 
Learfield Communications, Inc Media: Advertising, Printing & Publishing Initial Term Loan (A-L Parent) Loan 1M USD LIBOR+  3.25%  1.00%  5.78% 12/1/2023  472,500   472,056   412,001 
Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan 1M USD LIBOR+  3.50%  1.00%  6.02% 2/28/2025  2,616,496   2,598,667   2,524,918 
LIGHTSTONE HOLDCO LLC Energy: Electricity Term Loan 5/22 Loan 1M USD SOFR+  5.75%  1.00%  8.05% 2/1/2027  1,238,581   1,237,866   1,110,301 
LIGHTSTONE HOLDCO LLC Energy: Electricity Term Loan C 5/22 Loan 1M USD SOFR+  5.75%  1.00%  8.05% 2/1/2027  70,053   70,014   62,798 
Liquid Tech Solutions Holdings, LLC Services: Business Term Loan Loan 3M USD LIBOR+  4.75%  0.00%  7.00% 3/17/2028  990,000   986,841   955,350 
LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan 1M USD LIBOR+  4.75%  0.00%  7.12% 8/31/2027  3,940,000   3,882,660   3,057,440 
LOYALTY VENTURES INC. Services: Business Term Loan B Loan 1M USD LIBOR+  4.50%  0.50%  7.02% 11/3/2027  3,214,885   3,197,686   2,322,755 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan 1M USD LIBOR+  1.75%  0.00%  4.12% 11/11/2026  1,214,082   1,212,236   1,186,255 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD SOFR+  3.50%  0.50%  6.07% 10/16/2028  249,375   248,305   243,530 
LSF9 Atlantis Holdings, LLC (A Wireless) Retail Term Loan B Loan 3M USD SOFR+  7.25%  0.75%  9.30% 3/29/2029  3,000,000   2,903,617   2,917,500 
MA FinanceCo LLC High Tech Industries Term Loan B4 Loan 3M USD LIBOR+  4.25%  1.00%  5.92% 6/5/2025  2,876,682   2,825,841   2,835,344 
MAGNITE, INC. Services: Business Term Loan Loan 3M USD LIBOR+  5.00%  0.75%  8.07% 4/28/2028  1,980,000   1,939,001   1,900,800 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan 1M USD LIBOR+  1.75%  0.00%  4.27% 8/29/2025  1,317,074   1,317,074   1,281,513 
Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan 3M USD LIBOR+  1.75%  0.00%  4.69% 2/15/2027  250,000   249,611   242,500 
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  4.50%  0.00%  7.02% 2/28/2025  3,374,500   3,355,043   3,251,128 
McGraw-Hill Education, Inc. Media: Advertising, Printing & Publishing Term Loan (07/21) Loan 6M USD LIBOR+  4.75%  0.50%  8.32% 7/28/2028  1,985,000   1,967,344   1,915,525 
MedAssets Software Inter Hldg, Inc. High Tech Industries Term Loan (11/21) (USD) Loan 1M USD LIBOR+  4.00%  0.50%  6.49% 12/18/2028  498,750   495,632   479,423 
Mermaid Bidco Inc. High Tech Industries Term Loan B2 Loan 3M USD LIBOR+  3.50%  0.75%  6.30% 12/22/2027  988,763   985,894   939,324 
Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan 3M USD LIBOR+  2.50%  0.00%  4.75% 3/1/2026  3,361,400   3,348,049   3,293,332 
Michaels Companies Inc Retail Term Loan B (Magic Mergeco) Loan 3M USD LIBOR+  4.25%  0.75%  6.50% 4/8/2028  2,479,975   2,463,197   2,048,310 
Milk Specialties Company Beverage, Food & Tobacco Term Loan (6/21) Loan 3M USD LIBOR+  4.00%  1.00%  6.25% 8/15/2025  3,782,457   3,758,895   3,723,034 
MJH Healthcare Holdings, LLC Healthcare & Pharmaceuticals Term Loan B (01/22) Loan 1M USD SOFR+  3.50%  0.50%  6.06% 1/28/2029  249,375   248,256   236,906 
MRC Global Inc. Metals & Mining Term Loan B2 Loan 1M USD LIBOR+  3.00%  0.00%  5.52% 9/20/2024  350,559   350,285   340,627 
MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental) Loan 3M USD LIBOR+  3.75%  0.00%  6.00% 9/30/2024  2,842,097   2,818,327   2,752,088 
NAB Holdings, LLC (North American Bancard) Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan 3M USD SOFR+  3.00%  0.50%  5.20% 11/23/2028  2,985,000   2,978,402   2,879,898 
Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+  3.50%  0.00%  6.06% 11/14/2025  3,454,379   3,433,630   3,350,748 


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 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan 2/21 Loan 1M USD LIBOR+  3.75%  0.75%  6.28% 3/2/2028  2,749,967   2,740,611   2,323,722 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C 2/21 Loan 3M USD LIBOR+  3.75%  0.75%  6.01% 3/2/2028  87,464   87,111   73,907 
NEW ERA CAP, LLC Consumer goods: Durable Term Loan (01/22) Loan 3M USD LIBOR+  6.00%  0.75%  8.46% 7/13/2027  3,722,402   3,721,366   3,461,834 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  5.02% 9/18/2026  724,176   718,006   717,390 
Next Level Apparel, Inc. Retail Term Loan Loan 3M USD LIBOR+  5.50%  1.00%  7.86% 8/9/2024  1,700,340   1,693,877   1,598,320 
NM Z Parent Inc (Zep Inc) Construction & Building Term Loan B Loan 6M USD LIBOR+  2.50%  0.50%  3.79% 9/22/2028  635,250   629,751   628,218 
NorthPole Newco S.a.r.l (b) Aerospace & Defense Term Loan Loan  Prime+  7.00%  0.00%  12.50% 3/3/2025  5,348,887   5,074,545   472,467 
NortonLifeLock Inc. High Tech Industries Term Loan B Loan 1M USD SOFR+  2.00%  0.50%  4.32% 1/28/2029  1,500,000   1,492,500   1,453,125 
Novae LLC Automotive Term Loan Loan 3M USD SOFR+  5.00%  0.75%  7.73% 12/22/2028  443,333   443,333   412,300 
Novae LLC Automotive Term Loan B Loan 3M USD SOFR+  5.00%  0.75%  7.73% 12/22/2028  1,551,667   1,537,525   1,443,050 
Nuvei Technologies Corp. High Tech Industries US Term Loan Loan 1M USD LIBOR+  2.50%  0.50%  5.02% 9/29/2025  2,227,500   2,223,636   2,194,088 
Olaplex, Inc. Consumer goods: Non-durable Term Loan (2/22) Loan 3M USD SOFR+  3.75%  0.50%  6.39% 2/23/2029  997,500   995,282   965,081 
Organon & Co. Healthcare & Pharmaceuticals Term Loan USD Loan 3M USD LIBOR+  3.00%  0.50%  4.63% 6/2/2028  2,327,083   2,317,416   2,297,995 
Pacific Gas & Electric Utilities: Electric Term Loan Loan 1M USD LIBOR+  3.00%  0.50%  5.56% 6/18/2025  1,472,456   1,467,485   1,442,094 
PACTIV EVERGREEN GROUP HOLDINGS INC. Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+  3.50%  0.50%  6.02% 9/20/2028  992,500   988,180   964,144 
Padagis LLC Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  4.75%  0.50%  7.04% 7/6/2028  941,176   933,049   861,176 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Term Loan 1/21 Loan 3M USD LIBOR+  4.50%  0.50%  7.31% 1/7/2028  495,000   492,124   464,889 
PATAGONIA HOLDCO LLC Telecommunications Term Loan B Loan 3M USD SOFR+  5.75%  0.50%  8.39% 8/1/2029  2,000,000   1,641,510   1,691,660 
Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan 3M USD LIBOR+  3.75%  0.00%  6.00% 3/30/2027  488,991   480,942   460,385 
PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  5.02% 5/29/2026  809,038   806,635   790,382 
PEARLS (Netherlands) Bidco B.V. Chemicals, Plastics, & Rubber USD Term Loan (02/22) Loan 1M USD SOFR+  4.00%  0.50%  6.41% 2/28/2029  997,500   995,328   935,156 
PECF USS INTERMEDIATE HOLDING III CORPORATION Environmental Industries Term Loan B Loan 1M USD LIBOR+  4.25%  0.50%  6.77% 12/15/2028  99,500   99,304   92,460 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (12/21) Loan 6M USD LIBOR+  3.25%  0.00%  4.92% 12/29/2028  98,438   98,438   93,509 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC Healthcare & Pharmaceuticals Term Loan (12/22) Loan 6M USD LIBOR+  3.25%  0.50%  5.08% 12/29/2028  1,299,375   1,293,429   1,266,891 
Penn National Gaming, Inc Hotel, Gaming & Leisure Term Loan B Loan 1M USD SOFR+  2.75%  0.50%  5.31% 5/3/2029  1,000,000   995,117   979,130 
Peraton Corp. Aerospace & Defense Term Loan B Loan 1M USD LIBOR+  3.75%  0.75%  6.27% 2/1/2028  5,334,084   5,314,731   5,174,061 
PHYSICIAN PARTNERS, LLC Healthcare & Pharmaceuticals Term Loan Loan 1M USD SOFR+  4.00%  0.50%  6.56% 12/23/2028  1,995,000   1,976,571   1,915,200 
Pike Corporation Construction & Building Term Loan (8/22) Loan 1M USD SOFR+  3.50%  0.00%  5.81% 1/21/2028  500,000   487,554   491,250 


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 
Ping Identity Corporation High Tech Industries Term Loan B (11/21) Loan 1M USD SOFR+  3.75%  0.50%  6.31% 11/22/2028  997,500   992,975   995,006 
Pitney Bowes Inc Services: Business Term Loan B Loan 1M USD LIBOR+  4.00%  0.00%  6.38% 3/17/2028  3,959,975   3,932,460   3,662,977 
Plastipak Holdings Inc. Containers, Packaging & Glass Term Loan B (11/21) Loan 1M USD LIBOR+  2.50%  0.50%  5.06% 12/1/2028  1,931,176   1,922,443   1,884,114 
Playtika Holding Corp. High Tech Industries Term Loan B (3/21) Loan 1M USD LIBOR+  2.75%  0.00%  5.27% 3/13/2028  4,443,750   4,435,527   4,341,011 
PMHC II, INC. Chemicals, Plastics, & Rubber Term Loan (02/22) Loan 3M USD SOFR+  4.25%  0.50%  6.98% 4/21/2029  2,000,000   1,990,636   1,786,120 
PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan 6M USD LIBOR+  3.00%  0.75%  5.94% 12/29/2027  493,750   491,860   481,406 
Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+  4.75%  0.75%  7.27% 2/12/2028  5,431,250   5,381,558   5,023,906 
Pre-Paid Legal Services, Inc. Services: Consumer Term Loan (12/21) Loan 1M USD LIBOR+  3.75%  0.50%  6.12% 12/15/2028  2,992,500   2,969,469   2,908,351 
Presidio, Inc. Services: Business Term Loan B (1/20) Loan 1M USD LIBOR+  3.50%  0.00%  6.03% 1/22/2027  490,000   489,314   481,631 
Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan 1M USD LIBOR+  2.75%  0.75%  5.11% 9/23/2026  3,538,384   3,538,162   3,451,587 
PRIORITY HOLDINGS, LLC Services: Consumer Term Loan Loan 3M USD LIBOR+  5.75%  1.00%  8.55% 4/27/2027  2,970,000   2,944,939   2,889,810 
PriSo Acquisition Corporation Construction & Building Term Loan (01/21) Loan 3M USD LIBOR+  3.25%  0.75%  5.53% 12/28/2027  493,747   491,730   447,458 
Project Leopard Holdings, Inc. (NEW) High Tech Industries Term Loan B (06/22) Loan 3M USD SOFR+  5.25%  0.50%  7.83% 7/20/2029  1,000,000   930,746   932,500 
Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan 1M USD LIBOR+  3.00%  1.00%  5.53% 1/29/2025  478,913   478,045   457,361 
PUG LLC Services: Consumer Term Loan B (02/20) Loan 1M USD LIBOR+  3.50%  0.00%  6.02% 2/12/2027  482,600   480,985   451,835 
QUEST BORROWER LIMITED High Tech Industries Term Loan (1/22) Loan 3M USD SOFR+  4.25%  0.50%  6.98% 2/1/2029  2,000,000   1,981,727   1,812,780 
Rackspace Technology Global, Inc. High Tech Industries Term Loan (1/21) Loan 1M USD LIBOR+  2.75%  0.75%  5.62% 2/15/2028  2,989,962   2,890,155   2,406,501 
RealPage, Inc. High Tech Industries Term Loan (04/21) Loan 1M USD LIBOR+  3.00%  0.50%  5.52% 4/24/2028  992,500   990,556   953,485 
Renaissance Learning, Inc. Services: Consumer Term Loan (5/18) Loan 1M USD LIBOR+  3.25%  0.00%  5.77% 5/30/2025  2,953,757   2,933,719   2,869,309 
Rent-A-Center, Inc. Retail Term Loan B2 (9/21) Loan 3M USD LIBOR+  3.25%  0.50%  6.06% 2/17/2028  1,986,212   1,940,894   1,919,178 
Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan 6M USD LIBOR+  5.50%  1.00%  8.84% 12/20/2024  4,320,757   4,257,864   3,990,392 
Resideo Funding Inc. Services: Consumer Term Loan (1/21) Loan 1M USD LIBOR+  2.25%  0.50%  4.66% 2/11/2028  1,481,250   1,479,017   1,461,816 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 3M USD LIBOR+  4.25%  1.00%  6.50% 4/30/2024  3,061,659   3,056,618   2,786,110 
Restoration Hardware, Inc. Retail Term Loan (9/21) Loan 1M USD LIBOR+  2.50%  0.50%  5.02% 10/20/2028  3,479,969   3,472,961   3,198,091 
Reynolds Consumer Products LLC Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  4.27% 1/29/2027  1,284,432   1,283,585   1,256,534 
Reynolds Group Holdings Inc. Containers, Packaging & Glass Term Loan B2 Loan 1M USD LIBOR+  3.25%  0.00%  5.77% 2/5/2026  3,447,500   3,433,625   3,358,451 
Robertshaw US Holding Corp. Consumer goods: Durable Term Loan B Loan 1M USD LIBOR+  3.50%  1.00%  6.06% 2/28/2025  957,500   956,671   773,478 
Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan 1M USD LIBOR+  4.25%  0.00%  6.77% 11/28/2025  2,890,253   2,883,820   2,802,650 
Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 6M USD LIBOR+  3.50%  1.00%  5.00% 6/2/2025  5,590,662   5,559,118   5,279,709 
RV Retailer LLC Automotive Term Loan Loan 1M USD SOFR+  3.75%  0.75%  6.15% 2/8/2028  2,972,569   2,924,056   2,757,057 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+  3.00%  0.75%  5.56% 9/1/2027  1,486,187   1,473,540   1,463,894 
S&S HOLDINGS LLC Services: Business Term Loan Loan 3M USD LIBOR+  5.00%  0.50%  6.74% 3/10/2028  2,471,231   2,418,699   2,372,382 
Sally Holdings LLC Retail Term Loan B Loan 1M USD LIBOR+  2.25%  0.00%  4.78% 7/5/2024  743,409   742,172   734,734 
Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan 1M USD LIBOR+  3.00%  0.75%  5.52% 4/25/2025  932,499   916,389   911,854 


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 
Schweitzer-Mauduit International, Inc. High Tech Industries Term Loan B Loan 1M USD LIBOR+  3.75%  0.75%  6.31% 4/20/2028  2,970,000   2,955,834   2,821,500 
Scientific Games Holdings LP Hotel, Gaming & Leisure Term Loan B Loan 3M USD SOFR+  3.50%  0.50%  5.62% 4/4/2029  500,000   498,841   480,905 
SETANTA AIRCRAFT LEASING DAC Aerospace & Defense Term Loan Loan 3M USD LIBOR+  2.00%  0.00%  4.25% 11/2/2028  1,000,000   997,801   981,250 
Signify Health, LLC Healthcare & Pharmaceuticals Term Loan B (6/21) Loan 6M USD LIBOR+  3.25%  0.50%  6.13% 6/16/2028  496,250   494,165   491,288 
Sitel Worldwide Corporation Services: Business USD Term Loan (7/21) Loan 3M USD LIBOR+  3.75%  0.50%  6.01% 8/28/2028  1,985,000   1,976,344   1,941,330 
SiteOne Landscape Supply, LLC Services: Business Term Loan (3/21) Loan 1M USD LIBOR+  2.00%  0.50%  4.53% 3/18/2028  781,811   780,219   771,389 
SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan 1M USD LIBOR+  2.50%  0.00%  5.02% 1/23/2025  487,500   487,500   469,623 
Sotheby’s Services: Business Term Loan (7/21) Loan 3M USD LIBOR+  4.50%  0.50%  7.01% 1/15/2027  3,240,108   3,195,622   3,207,707 
Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber Term Loan (04/21) Loan 1M USD LIBOR+  3.25%  0.75%  5.61% 8/2/2028  1,990,000   1,981,456   1,929,305 
Specialty Pharma III Inc. Services: Business Term Loan Loan 1M USD LIBOR+  4.25%  0.75%  6.62% 3/31/2028  1,985,000   1,968,611   1,855,975 
Spectrum Brands, Inc. Consumer goods: Durable Term Loan (2/21) Loan 1M USD LIBOR+  2.00%  0.50%  4.53% 3/3/2028  493,750   492,765   483,668 
Spin Holdco, Inc. Services: Consumer Term Loan 3/21 Loan 3M USD LIBOR+  4.00%  0.75%  5.61% 3/4/2028  2,962,500   2,948,135   2,777,344 
SRAM, LLC Consumer goods: Durable Term Loan (05/21) Loan 1M USD LIBOR+  2.75%  0.50%  5.27% 5/12/2028  3,218,182   3,213,684   3,137,727 
SS&C Technologies, Inc. Services: Business Term Loan B3 Loan 1M USD LIBOR+  1.75%  0.00%  4.27% 4/16/2025  189,131   188,939   184,728 
SS&C Technologies, Inc. Services: Business Term Loan B4 Loan 1M USD LIBOR+  1.75%  0.00%  4.27% 4/16/2025  153,534   153,381   149,960 
SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan 1M USD LIBOR+  1.75%  0.00%  4.27% 4/16/2025  475,005   474,487   463,396 
Staples, Inc. Wholesale Term Loan (03/19) Loan 3M USD LIBOR+  5.00%  0.00%  7.78% 4/16/2026  4,363,910   4,256,362   3,833,214 
Stars Group Inc. (The) Hotel, Gaming & Leisure Term Loan Loan 3M USD LIBOR+  2.25%  0.00%  4.50% 7/21/2026  1,985,000   1,981,427   1,936,209 
Storable, Inc High Tech Industries Term Loan B Loan 1M USD SOFR+  3.50%  0.50%  5.96% 4/17/2028  497,500   496,550   480,088 
Superannuation & Investments US LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  3.75%  0.50%  6.27% 12/1/2028  995,000   985,995   975,100 
Sylvamo Corporation Forest Products & Paper Term Loan Loan 1M USD LIBOR+  4.50%  0.50%  7.02% 8/18/2028  866,667   858,991   838,500 
Syncsort Incorporated High Tech Industries Term Loan B (10/21) Loan 3M USD LIBOR+  4.00%  0.75%  6.78% 4/24/2028  2,482,494   2,481,422   2,354,223 
Ta TT Buyer LLC Media: Broadcasting & Subscription Term Loan 3/22 Loan 3M USD SOFR+  5.25%  0.50%  7.30% 4/2/2029  1,000,000   990,263   971,250 
Tenable Holdings, Inc. Services: Business Term Loan B (6/21) Loan 6M USD LIBOR+  2.75%  0.50%  5.56% 7/7/2028  995,000   992,840   960,175 
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+  5.25%  1.00%  7.73% 7/15/2025  4,405,869   4,342,781   4,264,529 
Tenneco Inc Capital Equipment Term Loan B Loan 1M USD LIBOR+  3.00%  0.00%  5.52% 10/1/2025  1,447,500   1,440,835   1,427,901 
Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  4.00%  1.00%  6.52% 9/27/2024  1,910,000   1,908,542   1,782,870 
The Dun & Bradstreet Corporation Services: Business Term Loan Loan 1M USD LIBOR+  3.25%  0.00%  5.74% 2/6/2026  994,950   993,794   965,598 
The Dun & Bradstreet Corporation Services: Business Term Loan B Loan 1M USD SOFR+  3.25%  0.00%  5.71% 1/18/2029  249,375   247,649   242,934 
THE KNOT WORLDWIDE INC. Services: Consumer Term Loan (1/22) Loan 1M USD SOFR+  4.50%  0.00%  7.06% 12/19/2025  4,869,796   4,864,341   4,811,991 
Thor Industries, Inc. Automotive USD Term Loan (3/21) Loan 1M USD LIBOR+  3.00%  0.00%  5.50% 2/1/2026  2,093,726   2,062,485   2,072,789 
TORY BURCH LLC Retail Term Loan Loan 1M USD LIBOR+  3.00%  0.50%  5.52% 4/15/2028  1,335,959   1,231,261   1,253,570 
Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD SOFR+  3.50%  0.75%  5.96% 8/18/2027  492,500   487,080   434,631 
Trans Union LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  2.25%  0.50%  4.77% 12/1/2028  865,968   864,048   848,804 
Transdigm, Inc. Aerospace & Defense Term Loan G (02/20) Loan 1M USD LIBOR+  2.25%  0.00%  4.77% 8/22/2024  4,003,636   4,004,932   3,924,924 
TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco Term Loan (03/21) Loan 3M USD LIBOR+  3.50%  0.50%  5.75% 3/31/2028  1,485,001   1,478,880   1,385,877 
Tronox Finance LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+  2.25%  0.00%  4.77% 3/10/2028  346,923   346,213   336,678 


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 
TruGreen Limited Partnership Services: Consumer Term Loan Loan 1M USD LIBOR+  4.00%  0.75%  6.52% 10/29/2027  959,371   953,452   918,597 
Uber Technologies, Inc. Transportation: Consumer Term Loan B (2/21) Loan 3M USD LIBOR+  3.50%  0.00%  6.57% 2/25/2027  3,927,110   3,892,273   3,868,203 
Ultra Clean Holdings, Inc. High Tech Industries Incremental Term Loan 3/21 Loan 1M USD LIBOR+  3.75%  0.00%  6.27% 8/27/2025  871,705   868,607   857,269 
Unimin Corporation Metals & Mining Term Loan (12/20) Loan 3M USD LIBOR+  4.00%  1.00%  6.29% 7/31/2026  496,815   473,971   476,475 
United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan 1M USD SOFR+  3.25%  0.00%  5.82% 10/22/2025  1,540,259   1,488,565   1,523,732 
United Road Services Inc. Transportation: Cargo Term Loan (10/17) Loan 3M USD LIBOR+  5.75%  1.00%  8.82% 9/1/2024  905,012   900,712   580,683 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/21) Loan 1M USD LIBOR+  3.25%  0.75%  5.77% 3/15/2026  2,459,068   2,453,085   2,398,476 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/22) Loan 3M USD SOFR+  4.25%  0.50%  6.25% 6/10/2029  250,000   242,635   245,000 
Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+  3.00%  0.00%  5.52% 1/20/2028  1,837,793   1,835,485   1,799,659 
Vaco Holdings, LLC Services: Business Term Loan (01/22) Loan 3M USD SOFR+  5.00%  0.75%  7.20% 1/19/2029  248,750   247,642   242,842 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan 3M USD LIBOR+  4.00%  0.00%  7.00% 8/20/2025  1,375,175   1,370,807   1,266,880 
Vertex Aerospace Services Corp Aerospace & Defense Term Loan (10/21) Loan 1M USD LIBOR+  3.75%  0.75%  6.27% 12/6/2028  997,500   993,032   982,956 
VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan (01/22) Loan 1M USD SOFR+  3.00%  0.50%  5.40% 1/12/2029  3,100,888   3,093,171   3,014,311 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (9/21) Loan 1M USD LIBOR+  2.25%  0.00%  4.62% 9/28/2028  2,868,409   2,859,993   2,832,554 
Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  4.27% 12/31/2025  902,095   901,690   883,070 
Vizient, Inc Healthcare & Pharmaceuticals Term Loan Loan 1M USD SOFR+  2.25%  0.50%  4.65% 5/16/2029  500,000   495,111   497,190 
VM Consolidated, Inc. Construction & Building Term Loan B (3/21) Loan 6M USD LIBOR+  3.25%  0.00%  6.13% 3/19/2028  2,327,542   2,324,786   2,292,629 
Vouvray US Finance LLC High Tech Industries Term Loan Loan 1M USD LIBOR+  3.00%  1.00%  5.52% 3/11/2024  473,750   473,750   422,429 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G Loan 1M USD LIBOR+  2.13%  0.00%  4.65% 1/20/2028  1,250,000   1,249,782   1,215,100 
Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries Term Loan (3/18) Loan 1M USD LIBOR+  3.75%  1.00%  6.12% 3/15/2025  487,277   486,224   419,059 
Watlow Electric Manufacturing Company High Tech Industries Term Loan B Loan 1M USD LIBOR+  3.75%  0.50%  6.27% 3/2/2028  2,468,750   2,458,373   2,415,672 
West Corporation Telecommunications Term Loan B (Olympus Merger) Loan 1M USD LIBOR+  4.00%  1.00%  6.52% 10/10/2024  1,066,719   1,035,551   868,522 
West Corporation Telecommunications Term Loan B Loan 1M USD LIBOR+  3.50%  1.00%  6.02% 10/10/2024  2,552,943   2,522,983   2,076,184 
WEX Inc. Diversified Financial Services Term Loan B (3/21) Loan 1M USD LIBOR+  2.25%  0.00%  4.77% 3/31/2028  2,969,962   2,959,565   2,903,138 
WildBrain Ltd. Media Term Loan Loan 1M USD LIBOR+  4.25%  0.75%  6.77% 3/27/2028  1,975,000   1,942,234   1,860,825 
WP CITYMD BIDCO LLC Health Care Equipment & Supplies Term Loan B Loan 3M USD LIBOR+  3.25%  0.50%  5.50% 12/22/2028  7,405,452   7,382,414   7,215,206 
Xperi Corporation Software Term Loan Loan 1M USD LIBOR+  3.50%  0.00%  6.02% 6/8/2028  2,671,319   2,661,232   2,612,897 
Zayo Group, LLC Diversified Telecommunication Services Term Loan B Loan 1M USD SOFR+  4.25%  0.50%  6.71% 3/9/2027  997,500   973,546   935,336 
ZEBRA BUYER (Allspring) LLC Real Estate Investment Trusts (REITs) Term Loan B Loan 3M USD LIBOR+  3.25%  0.50%  5.56% 11/1/2028  884,879   881,117   871,606 
Zekelman Industries, Inc. Metals & Mining Term Loan Loan 3M USD LIBOR+  2.00%  0.00%  4.18% 1/25/2027  965,193   965,193   935,754 
Zodiac Pool Solutions Leisure Products Term Loan B Loan 1M USD SOFR+  2.00%  0.50%  4.56% 1/29/2029  497,500   496,387   483,092 
                                   
                            $644,334,357  $604,030,601 
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 
19TH HOLDINGS GOLF, LLC Consumer goods: Durable Term Loan Loan  1M USD SOFR+  3.00%  0.50%  6.89% 2/7/2029 $498,750  $496,534  $455,109 
888 Acquisitions Limited Hotel, Gaming & Leisure Term Loan B Loan  6M USD SOFR+  5.25%  0.00%  8.28% 7/8/2028  2,000,000   1,711,631   1,716,260 
ADMI Corp. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+  2.75%  0.00%  6.82% 4/30/2025  1,915,276   1,911,485   1,786,473 
Adtalem Global Education Inc. Services: Business Term Loan B (02/21) Loan  1M USD LIBOR+  4.00%  0.75%  8.02% 8/11/2028  691,846   686,098   682,334 
Aegis Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  5.50%  1.00%  10.09% 5/9/2025  2,431,245   2,421,870   2,329,448 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (09/20) Loan  1M USD LIBOR+  2.75%  0.75%  6.56% 1/4/2026  214,286   212,959   208,929 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (1/19) Loan  1M USD LIBOR+  2.75%  0.00%  6.56% 1/4/2026  1,472,244   1,466,711   1,439,118 
AHEAD DB Holdings, LLC Services: Business Term Loan (04/21) Loan  3M USD LIBOR+  3.75%  0.75%  7.43% 10/18/2027  2,962,500   2,874,642   2,887,193 
AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense Term Loan B (USD) Loan  6M USD LIBOR+  3.50%  1.00%  8.17% 1/18/2027  1,458,273   1,454,100   1,432,447 
Air Canada Transportation: Consumer Term Loan B (07/21) Loan  3M USD LIBOR+  3.50%  0.75%  8.13% 8/11/2028  1,995,000   1,851,503   1,970,063 
AIS HoldCo, LLC Services: Business Term Loan Loan  3M USD LIBOR+  5.00%  0.00%  9.41% 8/15/2025  4,789,642   4,692,827   4,622,004 
Alchemy Copyrights, LLC Media: Diversified & Production Term Loan B Loan  1M USD LIBOR+  3.00%  0.50%  6.77% 3/10/2028  490,022   487,454   486,347 
Alchemy US Holdco 1, LLC Metals & Mining Term Loan Loan  1M USD LIBOR+  5.50%  0.00%  5.60% 10/10/2025  1,654,803   1,643,179   1,544,146 
AlixPartners, LLP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan  1M USD LIBOR+  2.75%  0.50%  6.82% 2/4/2028  246,250   245,798   241,172 
Alkermes, Inc. Healthcare & Pharmaceuticals Term Loan B (3/21) Loan  1M USD LIBOR+  2.50%  0.50%  6.44% 3/12/2026  2,131,628   2,117,213   2,035,705 
Allen Media, LLC Media: Diversified & Production Term Loan (7/21) Loan  3M USD SOFR+  5.50%  0.00%  9.20% 2/10/2027  4,405,559   4,377,776   3,646,966 
Alliant Holdings Intermediate, LLC Banking, Finance, Insurance & Real Estate Term Loan B4 Loan  1M USD LIBOR+  3.50%  0.50%  7.44% 11/5/2027  990,000   989,056   959,686 
Allied Universal Holdco LLC Services: Business Term Loan 4/21 Loan  1M USD LIBOR+  3.75%  0.50%  7.82% 5/12/2028  1,980,000   1,971,544   1,869,080 
Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate Term Loan B (03/18) Loan  3M USD LIBOR+  4.00%  1.00%  7.67% 4/3/2024  1,223,297   1,221,048   995,458 
Altium Packaging LLC Containers, Packaging & Glass Term Loan (01/21) Loan  1M USD LIBOR+  2.75%  0.50%  6.83% 1/29/2028  492,500   490,576   475,351 
American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan Loan  1M USD LIBOR+  4.50%  1.00%  8.55% 4/6/2024  3,012,861   3,011,417   2,966,162 
American Trailer World Corp Automotive Term Loan Loan  1M USD SOFR+  3.75%  0.75%  7.94% 3/3/2028  1,357,439   1,354,289   1,212,369 
AmWINS Group, LLC Banking, Finance, Insurance & Real Estate Term Loan 2/21 Loan  1M USD LIBOR+  2.25%  0.75%  6.32% 2/17/2028  1,965,014   1,944,832   1,922,590 

 


 

 

  Number of
Shares		  Cost  Fair Value 
Cash and cash equivalents            
U.S. Bank Money Market (c)  11,877,748  $11,877,748  $11,877,748 
Total cash and cash equivalents  11,877,748  $11,877,748  $11,877,748 
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 
Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan  3M USD LIBOR+  3.75%  0.00%  7.42% 8/11/2025  960,000   957,829   707,232 
Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan  3M USD LIBOR+  2.75%  1.00%  6.53% 12/7/2023  471,381   470,980   339,932 
Anchor Packaging, LLC Containers, Packaging & Glass Term Loan B Loan  1M USD LIBOR+  4.00%  0.00%  8.07% 7/18/2026  979,747   973,021   942,193 
ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+  6.00%  0.75%  10.07% 11/19/2027  2,977,500   2,927,538   2,842,024 
AP Core Holdings II LLC High Tech Industries Term Loan B1 Loan  1M USD LIBOR+  5.50%  0.75%  9.57% 9/1/2027  1,900,000   1,876,393   1,681,500 
AP Core Holdings II LLC High Tech Industries Term Loan B2 Loan  1M USD LIBOR+  5.50%  0.75%  9.57% 9/1/2027  500,000   493,797   442,085 
APEX GROUP TREASURY LIMITED Banking, Finance, Insurance & Real Estate Term Loan Incremental Loan  1M USD SOFR+  5.00%  0.50%  6.73% 7/27/2028  500,000   467,500   481,250 
APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan  1M USD LIBOR+  2.50%  0.00%  6.57% 10/1/2026  1,928,237   1,921,493   1,907,026 
APLP Holdings Limited Partnership Energy: Electricity Term Loan B (3/21) Loan  3M USD LIBOR+  3.75%  1.00%  7.32% 5/14/2027  512,994   508,986   510,003 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  2.75%  0.00%  6.82% 5/15/2026  2,946,701   2,919,425   2,799,365 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 (2/21) Loan  1M USD LIBOR+  3.50%  0.50%  7.08% 3/6/2028  985,000   977,071   916,050 
AppLovin Corporation High Tech Industries Term Loan (10/21) Loan  3M USD LIBOR+  3.00%  0.50%  6.67% 10/21/2028  1,492,500   1,489,192   1,397,353 
AppLovin Corporation High Tech Industries Term Loan B Loan  1M USD LIBOR+  3.25%  0.00%  7.32% 8/15/2025  982,143   982,143   951,451 
Aramark Corporation Services: Consumer Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  5.82% 1/15/2027  2,331,250   2,277,399   2,279,286 
Aramark Corporation Services: Consumer Term Loan B (4/21) Loan  1M USD LIBOR+  2.50%  0.00%  6.57% 4/1/2028  1,753,715   1,746,737   1,723,464 
ARC FALCON I INC. Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+  3.75%  0.50%  7.82% 9/23/2028  866,067   862,383   772,809 
ARC FALCON I INC. (a) Chemicals, Plastics, & Rubber Delayed Draw Term Loan Loan  N/A  N/A   N/A   N/A  9/29/2028  0   (534)  (13,717)
Arches Buyer Inc. Services: Consumer Term Loan B Loan  1M USD LIBOR+  3.25%  0.50%  7.32% 12/6/2027  1,484,848   1,476,381   1,347,188 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan  1M USD SOFR+  4.25%  0.00%  8.44% 10/1/2025  1,921,193   1,917,473   1,864,038 
ASP BLADE HOLDINGS, INC. Capital Equipment Term Loan Loan  3M USD LIBOR+  4.00%  0.50%  7.67% 10/7/2028  99,294   98,864   81,421 
Asplundh Tree Expert, LLC Services: Business Term Loan 2/21 Loan  1M USD LIBOR+  1.75%  0.00%  5.82% 9/7/2027  980,000   976,531   965,653 
AssuredPartners Capital, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (2/20) Loan  1M USD LIBOR+  3.50%  0.00%  7.57% 2/12/2027  992,347   988,999   952,861 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Incremental Term Loan (7/21) Loan  1M USD LIBOR+  3.50%  0.50%  7.57% 2/12/2027  987,500   987,500   947,259 


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 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+  3.50%  0.50%  7.59% 2/12/2027  497,500   496,473   477,292 
ASTRO ONE ACQUISITION CORPORATION Consumer goods: Durable Term Loan Loan  3M USD LIBOR+  5.50%  0.75%  9.17% 9/15/2028  2,977,500   2,952,162   2,270,344 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B10 Loan  3M USD SOFR+  4.00%  0.00%  7.65% 8/19/2028  2,000,000   1,903,321   1,749,160 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan  1M USD LIBOR+  3.25%  0.00%  7.32% 12/18/2026  2,972,422   2,963,170   2,595,905 
ATHENAHEALTH GROUP INC. Healthcare & Pharmaceuticals Term Loan B (2/22) Loan  1M USD SOFR+  3.50%  0.50%  7.41% 2/15/2029  1,279,402   1,273,783   1,165,535 
ATHENAHEALTH GROUP INC. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (02/22) Loan  N/A  N/A   N/A   N/A  N/A  -   -   (19,348)
Avaya, Inc. Telecommunications Term Loan B1 Loan  1M USD LIBOR+  4.25%  0.00%  8.12% 12/15/2027  1,755,766   1,748,465   825,210 
Avaya, Inc. Telecommunications Term Loan B-2 (2/21) Loan  1M USD LIBOR+  4.00%  0.00%  7.87% 12/15/2027  1,000,000   1,000,000   470,000 
Avison Young (Canada) Inc Services: Business Term Loan (08/22) Loan  1M USD SOFR+  7.00%  0.00%  10.84% 1/31/2026  750,000   707,671   705,000 
Avison Young (Canada) Inc Services: Business Term Loan Loan  1M USD LIBOR+  5.75%  0.00%  8.12% 1/31/2026  3,379,660   3,350,178   3,041,694 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3 Loan  1M USD LIBOR+  1.75%  0.75%  5.69% 1/15/2025  1,000,000   924,152   983,280 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 (7/21) Loan  1M USD LIBOR+  2.25%  0.50%  6.19% 12/1/2027  491,250   487,564   487,182 
AZURITY PHARMACEUTICALS, INC. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+  6.00%  0.75%  10.13% 9/20/2027  481,250   468,648   445,156 
B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan  1M USD LIBOR+  2.50%  0.00%  6.57% 10/10/2026  706,458   702,411   663,774 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan  1M USD LIBOR+  1.75%  0.00%  5.82% 11/19/2026  1,458,750   1,432,378   1,429,575 
BAKELITE UK INTERMEDIATE LTD. Chemicals, Plastics, & Rubber Term Loan Loan  3M USD SOFR+  4.00%  0.50%  7.67% 5/29/2029  997,500   992,785   927,675 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  3.50%  0.50%  7.38% 10/14/2027  1,229,438   1,218,148   1,189,481 
Bausch Health Companies Inc. Healthcare & Pharmaceuticals Term Loan B (1/22) Loan  1M USD SOFR+  5.25%  0.50%  9.15% 2/1/2027  1,975,000   1,778,325   1,465,608 
BCPE Empire Holdings, Inc. Services: Business Term Loan Amendment 3 Loan  1M USD SOFR+  4.63%  0.00%  8.81% 6/11/2026  497,500   481,689   482,222 
Belfor Holdings Inc. Services: Consumer Term Loan Loan  1M USD LIBOR+  4.00%  0.00%  8.07% 4/6/2026  246,183   246,055   243,877 


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 
Belfor Holdings Inc. Services: Consumer Term Loan B-2 (3/22) Loan  1M USD SOFR+  4.25%  0.50%  8.34% 4/6/2026  997,456   971,635   992,468 
Belron Finance US LLC Automotive Term Loan B (3/21) Loan  3M USD LIBOR+  2.50%  0.50%  7.06% 4/13/2028  1,970,000   1,954,259   1,947,227 
Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Term Loan Loan  3M USD SOFR+  3.25%  0.50%  6.90% 1/24/2029  1,995,000   1,993,510   1,875,300 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  6.32% 4/23/2026  982,278   977,214   956,494 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan (6/21) Loan  1M USD LIBOR+  2.75%  0.50%  6.82% 4/23/2026  1,468,869   1,461,127   1,435,819 
Blucora, Inc. Services: Consumer Term Loan (11/17) Loan  3M USD LIBOR+  4.00%  1.00%  7.67% 5/22/2024  2,287,052   2,283,467   2,287,052 
Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber Term Loan (2/21) Loan  3M USD LIBOR+  2.50%  0.00%  6.18% 3/4/2028  985,000   983,025   955,450 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan  1M USD LIBOR+  2.00%  0.00%  6.07% 5/24/2027  1,458,799   1,451,939   1,413,212 
Boxer Parent Company, Inc. High Tech Industries Term Loan (2/21) Loan  1M USD LIBOR+  3.75%  0.00%  7.82% 10/2/2025  518,307   518,307   496,476 
Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  4.25%  0.00%  7.99% 9/5/2025  960,000   957,834   928,800 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Term Loan B-3 Loan  1M USD LIBOR+  3.50%  0.00%  7.57% 3/5/2026  985,000   985,000   936,213 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan  1M USD LIBOR+  3.00%  0.00%  7.07% 1/22/2027  2,956,366   2,951,703   2,845,148 
Brookfield WEC Holdings Inc. Energy: Electricity Term Loan (1/21) Loan  1M USD LIBOR+  2.75%  0.50%  6.82% 8/1/2025  1,466,344   1,467,980   1,437,780 
BROWN GROUP HOLDING, LLC Aerospace & Defense Term Loan B-2 Loan  3M USD SOFR+  3.75%  0.00%  7.84% 6/8/2029  500,000   488,005   496,250 
Buckeye Partners, L.P. Utilities: Oil & Gas Term Loan (1/21) Loan  1M USD LIBOR+  2.25%  0.00%  6.02% 11/1/2026  1,955,163   1,945,010   1,929,843 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+  3.50%  0.50%  7.57% 3/31/2028  2,468,750   2,448,956   2,400,859 
Callaway Golf Company Retail Term Loan B Loan  1M USD LIBOR+  4.50%  0.00%  8.57% 1/4/2026  676,875   669,868   674,973 
Camping World, Inc. Retail Term Loan B (5/21) Loan  1M USD LIBOR+  2.50%  0.75%  6.37% 6/5/2028  2,493,671   2,265,060   2,247,421 
CareerBuilder, LLC Services: Business Term Loan Loan  3M USD LIBOR+  6.75%  1.00%  10.42% 7/31/2023  5,393,388   5,320,672   3,573,119 
Casa Systems, Inc Telecommunications Term Loan Loan  3M USD LIBOR+  4.00%  1.00%  6.25% 12/20/2023  -   11,270   - 
Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan  1M USD LIBOR+  3.75%  0.00%  7.82% 1/27/2027  1,967,571   1,957,645   1,368,701 
CBI BUYER, INC. Consumer goods: Durable Term Loan Loan  1M USD LIBOR+  3.25%  0.50%  7.13% 1/6/2028  2,977,424   2,815,361   2,149,700 


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 
CCC Intelligent Solutions Inc. Services: Business Term Loan B Loan  1M USD LIBOR+  2.25%  0.50%  6.32% 9/16/2028  248,125   247,590   243,907 
CCI Buyer, Inc Telecommunications Term Loan Loan  3M USD SOFR+  4.00%  0.75%  7.55% 12/17/2027  246,250   244,380   237,693 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B (11/22) Loan  1M USD SOFR+  4.25%  0.50%  8.16% 3/5/2028  1,000,000   950,000   950,000 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+  3.75%  0.75%  7.83% 3/5/2028  985,000   980,935   935,750 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  5.50%  0.00%  9.91% 9/25/2025  2,406,250   2,395,238   2,218,563 
CDK GLOBAL, INC. High Tech Industries Term Loan B Loan  1M USD SOFR+  4.50%  0.50%  8.11% 7/6/2029  1,000,000   970,767   987,160 
Cengage Learning, Inc. Media: Advertising, Printing & Publishing Term Loan B (6/21) Loan  6M USD LIBOR+  4.75%  1.00%  7.81% 7/14/2026  2,970,000   2,947,629   2,722,005 
CENTURI GROUP, INC. Construction & Building Term Loan B Loan  1M USD LIBOR+  2.50%  0.50%  6.57% 8/27/2028  880,830   873,365   847,526 
CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan  1M USD LIBOR+  2.25%  0.00%  6.32% 3/15/2027  3,899,823   3,895,031   3,691,846 
Charlotte Buyer, Inc. Services: Business Term Loan B Loan  1M USD SOFR+  5.25%  0.00%  9.05% 2/11/2028  1,500,000   1,399,252   1,420,005 
Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  5.83% 4/3/2025  907,689   880,613   889,535 
Churchill Downs Incorporated Hotel, Gaming & Leisure Term Loan B1 (3/21) Loan  1M USD LIBOR+  2.00%  0.00%  6.08% 3/17/2028  492,500   491,517   483,881 
CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing USD Term Loan Loan  1M USD LIBOR+  3.50%  0.50%  7.57% 5/17/2028  1,984,975   1,893,696   1,741,815 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan  1M USD SOFR+  2.50%  0.00%  6.70% 2/2/2028  4,925,000   4,921,355   4,844,969 
Clarios Global LP Automotive Term Loan B1 Loan  1M USD LIBOR+  3.25%  0.00%  7.32% 4/30/2026  1,267,812   1,260,725   1,245,891 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B-1 (11/21) Loan  1M USD SOFR+  4.50%  0.50%  8.40% 8/9/2026  3,448,649   3,429,363   3,392,608 
CLYDESDALE ACQUISITION HOLDINGS, INC. Containers, Packaging & Glass Term Loan B Loan  1M USD SOFR+  4.18%  0.50%  8.36% 4/13/2029  1,496,250   1,461,330   1,442,415 
Cole Haan Consumer goods: Non-durable Term Loan B Loan  3M USD LIBOR+  5.50%  0.00%  9.17% 2/7/2025  887,500   883,329   813,545 
Columbus McKinnon Corporation Capital Equipment Term Loan (4/21) Loan  3M USD LIBOR+  2.75%  0.50%  6.44% 5/14/2028  458,677   457,730   450,650 
Conduent, Inc. Services: Business Term Loan B Loan  1M USD LIBOR+  4.25%  0.50%  8.32% 10/16/2028  1,792,500   1,758,276   1,684,950 
Connect Finco SARL Telecommunications Term Loan (1/21) Loan  1M USD LIBOR+  3.50%  1.00%  7.58% 12/11/2026  2,925,000   2,818,276   2,884,781 
Consolidated Communications, Inc. Telecommunications Term Loan B Loan  1M USD LIBOR+  3.50%  0.75%  7.63% 10/2/2027  2,714,005   2,511,207   2,370,222 
CORAL-US CO-BORROWER LLC Telecommunications Term Loan B-5 Loan  1M USD LIBOR+  2.25%  0.00%  6.13% 1/31/2028  4,000,000   3,988,162   3,871,000 
Corelogic, Inc. Services: Business Term Loan (4/21) Loan  1M USD LIBOR+  3.50%  0.50%  7.63% 6/2/2028  2,475,000   2,464,692   2,035,688 


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 
Cortes NP Acquisition Corp (Vertiv) Capital Equipment Term Loan 2/21 Loan  1M USD LIBOR+  2.75%  0.00%  6.55% 3/2/2027  1,965,000   1,965,000   1,913,419 
COWEN INC. Banking, Finance, Insurance & Real Estate Term Loan Loan  6M USD LIBOR+  3.25%  0.00%  7.43% 3/24/2028  3,937,424   3,917,264   3,912,816 
Creative Artists Agency, LLC Media: Diversified & Production Term Loan B2 (6/22) Loan  1M USD SOFR+  4.25%  1.00%  8.34% 11/27/2026  498,750   481,495   491,269 
CROCS INC Consumer goods: Durable Term Loan Loan  6M USD SOFR+  3.50%  0.50%  7.73% 2/20/2029  2,962,500   2,851,533   2,855,109 
Cross Financial Corp Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  1M USD LIBOR+  4.00%  0.75%  8.13% 9/15/2027  493,750   493,278   486,754 
Crown Subsea Communications Holding, Inc. Construction & Building Term Loan (4/21) Loan  1M USD LIBOR+  4.75%  0.75%  8.52% 4/27/2027  3,404,110   3,376,446   3,316,896 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  6.12% 1/15/2026  481,250   480,747   457,938 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B (03/17) Loan  1M USD LIBOR+  2.25%  0.00%  6.12% 7/15/2025  1,918,782   1,907,588   1,834,356 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan  1M USD LIBOR+  2.50%  0.00%  6.37% 4/15/2027  486,250   486,250   454,848 
CTS Midco, LLC High Tech Industries Term Loan B Loan  3M USD LIBOR+  6.00%  1.00%  10.41% 11/2/2027  1,965,000   1,920,583   1,650,600 
Daseke Inc Transportation: Cargo Term Loan 2/21 Loan  1M USD LIBOR+  4.00%  0.75%  8.02% 3/5/2028  1,477,500   1,471,549   1,423,483 
Dave & Buster’s Inc. Hotel, Gaming & Leisure Term Loan B (04/22) Loan  1M USD SOFR+  5.00%  0.50%  9.19% 6/29/2029  997,500   949,562   988,273 
DCert Buyer, Inc. High Tech Industries Term Loan Loan  6M USD SOFR+  4.00%  0.00%  8.70% 10/16/2026  1,473,552   1,473,552   1,415,140 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  6.00% 3/31/2025  4,761,489   4,737,511   4,713,874 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B (11/22) Loan  1M USD SOFR+  3.50%  0.50%  5.79% 11/16/2029  638,511   612,970   611,904 
Delta 2 Lux Sarl Hotel, Gaming & Leisure Term Loan B Loan  1M USD SOFR+  3.25%  0.50%  7.20% 1/15/2030  1,000,000   990,000   994,690 
DexKo Global, Inc. (Dragon Merger) Automotive Term Loan (9/21) Loan  3M USD LIBOR+  3.75%  0.50%  7.42% 10/4/2028  995,000   991,404   897,709 
DG Investment Intermediate Holdings 2, Inc. Aerospace & Defense Incremental Term Loan (3/22) Loan  1M USD SOFR+  4.75%  0.75%  8.84% 3/31/2028  500,000   480,000   480,000 
Diamond Sports Group, LLC Media: Broadcasting & Subscription 1st Priority Term Loan Loan  1M USD SOFR+  8.00%  1.00%  11.89% 5/25/2026  343,206   334,272   323,128 
Diamond Sports Group, LLC Media: Broadcasting & Subscription Second Lien Term Loan Loan  1M USD SOFR+  3.25%  0.00%  7.14% 8/24/2026  3,383,403   3,002,894   535,017 


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 
DIRECTV FINANCING, LLC Media: Broadcasting & Subscription Term Loan Loan  1M USD LIBOR+  5.00%  0.75%  9.07% 8/2/2027  3,640,000   3,610,628   3,481,150 
DISCOVERY PURCHASER CORPORATION Chemicals, Plastics, & Rubber Term Loan Loan  3M USD SOFR+  4.38%  0.50%  7.97% 10/4/2029  1,500,000   1,381,965   1,366,125 
Dispatch Acquisition Holdings, LLC Environmental Industries Term Loan B (3/21) Loan  3M USD LIBOR+  4.25%  0.75%  7.92% 3/25/2028  493,750   489,829   408,578 
DOMTAR CORPORATION Forest Products & Paper Term Loan 9/21 Loan  1M USD LIBOR+  5.50%  0.75%  8.81% 11/30/2028  1,313,445   1,274,186   1,278,415 
DOTDASH MEREDITH, INC. Media: Advertising, Printing & Publishing Term Loan B Loan  1M USD SOFR+  4.00%  0.50%  7.84% 11/30/2028  2,000,000   1,801,481   1,730,000 
DRI HOLDING INC. Media: Advertising, Printing & Publishing Term Loan (12/21) Loan  1M USD LIBOR+  5.25%  0.50%  9.32% 12/15/2028  3,982,494   3,835,244   3,537,769 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan (2/21) Loan  1M USD LIBOR+  3.75%  0.00%  7.82% 3/1/2028  6,435,000   6,394,793   6,264,086 
DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan  1M USD LIBOR+  2.75%  0.00%  6.82% 8/21/2025  3,846,424   3,837,843   3,747,532 
EAB Global, Inc. Services: Business Term Loan (08/21) Loan  1M USD LIBOR+  3.50%  0.50%  7.57% 8/16/2028  992,500   988,234   955,103 
Echo Global Logistics, Inc. Services: Business Term Loan Loan  1M USD LIBOR+  3.50%  0.50%  7.57% 11/23/2028  1,990,000   1,985,621   1,827,815 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  1M USD LIBOR+  3.50%  0.75%  7.57% 4/7/2028  2,194,102   2,187,303   2,090,869 
Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan  1M USD LIBOR+  4.25%  0.00%  8.32% 6/26/2025  1,893,400   1,893,400   1,693,419 
ELECTRON BIDCO INC. Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+  3.00%  0.50%  7.07% 11/1/2028  497,500   495,391   482,222 
ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan  3M USD LIBOR+  6.50%  0.00%  10.17% 12/14/2025  2,175,269   2,117,050   2,091,891 
Embecta Corp Healthcare & Pharmaceuticals Term Loan B Loan  3M USD SOFR+  3.00%  0.50%  6.55% 3/30/2029  616,467   613,029   592,197 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan (3/21) Loan  Prime  6.00%  0.75%  13.00% 3/27/2028  2,335,285   2,327,697   1,850,714 
Endure Digital, Inc. High Tech Industries Term Loan B Loan  1M USD LIBOR+  3.50%  0.75%  7.35% 2/10/2028  2,468,750   2,458,793   2,234,219 
Envision Healthcare Corporation Healthcare & Pharmaceuticals Term Loan B (06/18) Loan  3M USD LIBOR+  3.75%  0.00%  8.16% 10/10/2025  4,802,089   4,798,602   1,333,780 
EOS U.S. FINCO LLC Transportation: Cargo Term Loan Loan  3M USD SOFR+  6.00%  0.50%  9.61% 8/3/2029  1,000,000   921,781   962,500 
Equiniti Group PLC Services: Business Term Loan B Loan  3M USD LIBOR+  4.50%  0.50%  8.17% 12/11/2028  992,500   983,752   976,372 
EyeCare Partners, LLC Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  3.75%  0.00%  7.42% 2/18/2027  1,953,051   1,952,938   1,683,530 
Finco I LLC Banking, Finance, Insurance & Real Estate Term Loan B (9/20) Loan  1M USD LIBOR+  2.50%  0.00%  6.57% 6/27/2025  2,830,950   2,826,583   2,815,040 


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 
First Brands Group, LLC Automotive 1st Lien Term Loan (3/21) Loan  6M USD SOFR+  5.00%  1.00%  8.37% 3/30/2027  4,925,000   4,863,003   4,744,400 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan  3M USD LIBOR+  2.50%  0.00%  6.17% 2/1/2027  5,159,769   5,146,052   5,022,467 
First Student Bidco Inc. Transportation: Consumer Term Loan B Loan  3M USD LIBOR+  3.00%  0.50%  6.64% 7/21/2028  724,914   720,485   680,289 
First Student Bidco Inc. Transportation: Consumer Term Loan C Loan  3M USD LIBOR+  3.00%  0.50%  6.64% 7/21/2028  269,608   267,960   253,011 
Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan  3M USD SOFR+  3.25%  1.00%  7.49% 4/18/2025  1,330,058   1,326,498   1,218,666 
Flutter Financing B.V. Hotel, Gaming & Leisure Third Amendment 2028-B Term Loan Loan  3M USD SOFR+  3.25%  0.50%  7.01% 7/21/2028  750,000   733,395   743,955 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD SOFR+  3.25%  0.50%  7.33% 6/29/2028  1,491,026   1,473,267   1,465,872 
Franchise Group, Inc. Services: Consumer First Out Term Loan Loan  3M USD LIBOR+  4.75%  0.75%  8.69% 3/10/2026  799,104   793,510   768,139 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  2.25%  0.00%  6.38% 8/1/2025  4,319,981   4,304,912   4,265,982 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan  1M USD LIBOR+  2.25%  0.00%  6.32% 1/29/2027  1,955,000   1,952,258   1,897,738 
Garrett LX III S.a r.l. Automotive Dollar Term Loan Loan  3M USD LIBOR+  3.25%  0.50%  7.67% 4/30/2028  1,485,000   1,479,126   1,466,438 
Gates Global LLC Automotive Term Loan (11/22) Loan  1M USD SOFR+  3.50%  0.50%  7.30% 11/9/2029  250,000   242,500   245,500 
Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan  3M USD LIBOR+  3.00%  0.50%  7.42% 12/31/2027  2,315,912   2,301,741   2,253,961 
General Nutrition Centers, Inc. Retail Second Lien Term Loan Loan  1M USD LIBOR+  6.00%  0.00%  9.94% 10/7/2026  361,259   361,259   331,156 
Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan  3M USD LIBOR+  2.00%  0.00%  5.67% 12/30/2026  1,462,500   1,458,153   1,446,968 
GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD SOFR+  2.50%  0.00%  6.69% 8/27/2025  3,083,145   2,709,702   3,040,752 
Global Tel*Link Corporation Telecommunications Term Loan B Loan  3M USD SOFR+  4.25%  0.00%  8.49% 11/29/2025  4,910,390   4,754,383   4,221,413 
Go Daddy Operating Company, LLC High Tech Industries Term Loan 2/21 Loan  1M USD LIBOR+  2.00%  0.00%  6.07% 8/10/2027  1,964,824   1,964,824   1,945,176 
GOLDEN WEST PACKAGING GROUP LLC Forest Products & Paper Term Loan (11/21) Loan  1M USD LIBOR+  5.25%  0.75%  9.00% 12/1/2027  1,975,000   1,957,934   1,910,813 
Graham Packaging Co Inc Containers, Packaging & Glass Term Loan (2/21) Loan  1M USD LIBOR+  3.00%  0.75%  7.07% 8/7/2027  964,966   959,889   942,048 
Great Outdoors Group, LLC Retail Term Loan B2 Loan  1M USD LIBOR+  3.75%  0.75%  7.82% 3/6/2028  982,575   978,572   943,026 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+  3.25%  0.00%  7.32% 4/12/2024  2,844,231   2,833,856   2,766,014 


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 
Griffon Corporation Consumer goods: Durable Term Loan B Loan  1M USD SOFR+  2.50%  0.50%  6.62% 1/24/2029  155,000   154,653   151,998 
Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Amendment 5 Term Loan Loan  1M USD LIBOR+  2.50%  0.50%  6.57% 2/24/2028  2,844,023   2,841,299   2,801,363 
Harbor Freight Tools USA, Inc. Retail Term Loan B (06/21) Loan  1M USD LIBOR+  2.75%  0.50%  6.82% 10/19/2027  3,447,236   3,428,346   3,266,980 
Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan  1M USD LIBOR+  3.75%  1.00%  7.82% 6/3/2024  209,702   209,657   202,798 
Hillman Group Inc. (The) (New) Consumer goods: Durable Term Loan B-1 (2/21) Loan  1M USD LIBOR+  2.75%  0.50%  6.79% 7/14/2028  3,487,975   3,481,366   3,372,872 
Hillman Group Inc. (The) (New) (a) Consumer goods: Durable Delayed Draw Term Loan (2/21) Loan  1M USD LIBOR+  2.75%  0.50%  6.79% 7/14/2028  66,836   66,835   39,010 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan  1M USD LIBOR+  2.50%  0.00%  6.57% 8/18/2025  3,520,000   3,513,070   3,358,960 
Holley Purchaser, Inc Automotive Term Loan (11/21) Loan  3M USD LIBOR+  3.75%  0.75%  8.42% 11/17/2028  2,324,464   2,315,433   2,030,280 
Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan  1M USD LIBOR+  3.25%  0.75%  7.38% 11/12/2027  2,157,681   2,148,953   2,100,653 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan (3/21) Loan  1M USD SOFR+  3.00%  0.00%  7.20% 3/17/2028  5,910,000   5,863,465   5,491,040 
Idera, Inc. High Tech Industries Term Loan (02/21) Loan  3M USD LIBOR+  3.75%  0.75%  7.50% 3/2/2028  4,823,353   4,813,942   4,560,094 
IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/21) Loan  1M USD LIBOR+  3.50%  0.50%  7.57% 11/1/2028  1,985,000   1,976,455   1,911,813 
INDY US BIDCO, LLC Services: Business Term Loan (11/21) Loan  1M USD LIBOR+  3.75%  0.00%  7.82% 3/6/2028  2,221,313   2,220,912   1,940,872 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber Term Loan (1/21) Loan  1M USD LIBOR+  2.75%  0.50%  6.82% 1/29/2026  1,984,975   1,930,186   1,950,238 
Informatica Inc. High Tech Industries Term Loan B (10/21) Loan  1M USD LIBOR+  2.75%  0.00%  6.88% 10/27/2028  497,500   497,008   486,804 
Ingram Micro Inc. Wholesale Term Loan Loan  3M USD LIBOR+  3.50%  0.50%  7.17% 6/30/2028  1,481,250   1,468,838   1,457,639 
Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan  1M USD LIBOR+  4.00%  1.00%  8.07% 5/1/2024  3,359,537   3,331,094   3,037,021 
Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan  1M USD LIBOR+  3.25%  0.00%  7.32% 2/4/2027  487,500   485,983   478,969 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable Term Loan 4/21 Loan  6M USD LIBOR+  5.00%  0.75%  7.08% 4/7/2028  4,112,759   4,094,253   2,739,097 
Isagenix International, LLC (b) Beverage, Food & Tobacco Term Loan Loan  3M USD LIBOR+  7.75%  1.00%  11.35% 6/14/2025  2,364,256   2,343,650   505,360 
Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+  3.50%  0.00%  7.39% 3/14/2025  2,934,827   2,920,577   2,773,412 
J Jill Group, Inc Retail Common Stock - Restricted N/A  N/A  N/A   N/A   N/A  N/A  2,107   -   53,602 
J Jill Group, Inc Retail Priming Term Loan Loan  3M USD LIBOR+  5.00%  1.00%  9.41% 5/8/2024  1,559,000   1,558,339   1,424,537 
Jane Street Group Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan  1M USD LIBOR+  2.75%  0.00%  6.82% 1/31/2028  3,930,000   3,925,864   3,813,947 


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 
Journey Personal Care Corp. Consumer goods: Non-durable Term Loan B Loan  3M USD LIBOR+  4.25%  0.75%  7.92% 3/1/2028  987,500   983,491   706,063 
JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan  3M USD LIBOR+  5.50%  1.00%  9.91% 11/15/2025  3,951,625   3,929,324   2,850,109 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Term Loan (1/21) (USD) Loan  6M USD SOFR+  4.75%  0.50%  8.26% 2/12/2026  1,477,500   1,472,741   1,311,902 
Kodiak BP, LLC Construction & Building Term Loan Loan  3M USD LIBOR+  3.25%  0.75%  6.92% 3/13/2028  492,500   491,212   464,590 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan  1M USD LIBOR+  3.50%  0.50%  7.44% 9/1/2027  492,528   483,597   486,372 
Lakeland Tours, LLC Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan  Fixed  0.00%  0.00%  13.25% 9/27/2027  990,775   374,526   610,981 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Third Out PIK Term Loan Loan  3M USD LIBOR+  1.50%  1.25%  4.31% 9/25/2025  -   101,437   - 
Lealand Finance Company B.V. Energy: Oil & Gas Exit Term Loan Loan  1M USD LIBOR+  1.00%  0.00%  5.07% 6/30/2025  342,503   342,503   180,098 
LHS BORROWER, LLC Construction & Building Term Loan (02/22) Loan  1M USD SOFR+  4.75%  0.50%  8.94% 2/25/2029  1,000,000   813,015   806,250 
Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan  1M USD LIBOR+  3.50%  1.00%  7.57% 2/28/2025  2,616,496   2,600,308   2,481,301 
Liquid Tech Solutions Holdings, LLC Services: Business Term Loan Loan  6M USD LIBOR+  4.75%  0.00%  8.92% 3/17/2028  987,500   984,471   933,188 
LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan  1M USD LIBOR+  4.75%  0.00%  8.77% 8/31/2027  3,930,000   3,874,858   2,513,549 
LOYALTY VENTURES INC. Services: Business Term Loan B Loan  1M USD LIBOR+  4.50%  0.50%  8.57% 11/3/2027  3,152,258   3,136,058   1,245,142 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan  1M USD LIBOR+  1.75%  0.00%  5.52% 11/11/2026  1,210,969   1,209,252   1,202,892 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD SOFR+  3.50%  0.50%  7.70% 10/16/2028  248,750   247,702   240,302 
LSF9 Atlantis Holdings, LLC (A Wireless) Retail Term Loan B Loan  3M USD SOFR+  7.25%  0.75%  10.80% 3/29/2029  3,000,000   2,905,986   2,894,370 
MA FinanceCo LLC High Tech Industries Term Loan B4 Loan  3M USD LIBOR+  4.25%  1.00%  7.42% 6/5/2025  2,857,188   2,810,388   2,835,759 
MAGNITE, INC. Services: Business Term Loan Loan  3M USD LIBOR+  5.00%  0.75%  9.74% 4/28/2028  2,972,475   2,905,470   2,784,228 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan  1M USD LIBOR+  1.75%  0.00%  5.82% 8/29/2025  1,317,074   1,317,074   1,298,306 
Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan  1M USD LIBOR+  1.75%  0.00%  5.65% 2/15/2027  250,000   249,611   244,688 
Maxar Technologies Inc Aerospace & Defense Term Loan (6/22) Loan  1M USD SOFR+  4.25%  0.50%  8.44% 6/14/2029  2,000,000   1,929,241   1,922,180 
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  4.50%  0.00%  8.57% 2/28/2025  3,365,714   3,348,141   3,155,357 


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 
McGraw-Hill Education, Inc. Media: Advertising, Printing & Publishing Term Loan (07/21) Loan  1M USD LIBOR+  4.75%  0.50%  8.82% 7/28/2028  1,980,000   1,962,386   1,887,930 
MedAssets Software Inter Hldg, Inc. High Tech Industries Term Loan (11/21) (USD) Loan  1M USD LIBOR+  4.00%  0.50%  8.07% 12/18/2028  497,500   494,466   446,506 
Mermaid Bidco Inc. High Tech Industries Term Loan B2 Loan  3M USD LIBOR+  3.50%  0.75%  7.96% 12/22/2027  986,266   983,493   922,158 
Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan  3M USD LIBOR+  2.50%  0.00%  6.17% 3/1/2026  3,271,171   3,259,083   3,219,388 
Michaels Companies Inc Retail Term Loan B (Magic Mergeco) Loan  3M USD LIBOR+  4.25%  0.75%  7.92% 4/8/2028  2,473,712   2,457,308   1,864,214 
Milk Specialties Company Beverage, Food & Tobacco Term Loan (6/21) Loan  3M USD LIBOR+  4.00%  1.00%  7.67% 8/15/2025  3,772,905   3,750,698   3,725,744 
MJH Healthcare Holdings, LLC Healthcare & Pharmaceuticals Term Loan B (01/22) Loan  1M USD SOFR+  3.50%  0.50%  7.69% 1/28/2029  248,750   247,659   240,200 
MPH Acquisition Holdings LLC (Multiplan) Services: Business Term Loan B (08/21) Loan  3M USD LIBOR+  4.25%  0.50%  8.98% 9/1/2028  2,000,000   1,862,500   1,712,500 
MRC Global Inc. Metals & Mining Term Loan B2 Loan  1M USD LIBOR+  3.00%  0.00%  7.07% 9/20/2024  349,634   349,376   342,641 
MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental) Loan  3M USD LIBOR+  3.75%  0.00%  7.42% 9/30/2024  2,842,097   2,820,647   2,753,282 
NAB Holdings, LLC (North American Bancard) Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan  3M USD SOFR+  3.00%  0.50%  6.70% 11/23/2028  2,977,500   2,970,919   2,888,175 
Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+  3.50%  0.00%  7.63% 11/14/2025  3,445,430   3,426,270   3,393,748 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C 2/21 Loan  3M USD LIBOR+  3.75%  0.75%  7.43% 3/2/2028  87,464   87,115   61,783 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan 2/21 Loan  3M USD LIBOR+  3.75%  0.75%  7.43% 3/2/2028  2,743,005   2,733,886   1,937,631 
NEW ERA CAP, LLC Consumer goods: Durable Term Loan (01/22) Loan  3M USD LIBOR+  6.00%  0.75%  9.94% 7/13/2027  3,675,283   3,674,288   3,418,013 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Term Loan Loan  1M USD LIBOR+  2.50%  0.00%  6.57% 9/18/2026  724,176   718,378   717,687 
Next Level Apparel, Inc. Retail Term Loan Loan  3M USD LIBOR+  5.50%  1.00%  9.32% 8/9/2024  1,687,840   1,681,956   1,384,029 
NorthPole Newco S.a.r.l (b) Aerospace & Defense Term Loan Loan  Prime  7.00%  0.00%  14.00% 3/3/2025  5,348,887   5,097,117   414,539 
NortonLifeLock Inc. High Tech Industries Term Loan B Loan  1M USD SOFR+  2.00%  0.50%  6.19% 9/12/2029  1,500,000   1,492,952   1,473,120 
Novae LLC Automotive Term Loan B Loan  3M USD SOFR+  5.00%  0.75%  9.20% 12/22/2028  1,990,000   1,976,544   1,791,000 
Nuvei Technologies Corp. High Tech Industries US Term Loan Loan  1M USD LIBOR+  2.50%  0.50%  6.57% 9/29/2025  2,221,875   2,218,228   2,182,992 
Olaplex, Inc. Consumer goods: Non-durable Term Loan (2/22) Loan  1M USD SOFR+  3.50%  0.50%  7.62% 2/23/2029  995,000   992,800   945,250 


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 
Open Text Corporation High Tech Industries Term Loan B Loan  1M USD SOFR+  3.50%  0.50%  7.29% 11/16/2029  1,500,000   1,455,000   1,455,630 
Organon & Co. Healthcare & Pharmaceuticals Term Loan USD Loan  3M USD LIBOR+  3.00%  0.50%  6.19% 6/2/2028  2,327,083   2,317,608   2,301,485 
Pacific Gas & Electric Utilities: Electric Term Loan Loan  1M USD LIBOR+  3.00%  0.50%  7.13% 6/18/2025  1,468,700   1,464,078   1,444,525 
PACTIV EVERGREEN GROUP HOLDINGS INC. Containers, Packaging & Glass Term Loan B Loan  1M USD LIBOR+  3.25%  0.50%  7.32% 9/20/2028  990,000   985,784   974,378 
Padagis LLC Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+  4.75%  0.50%  8.49% 7/6/2028  941,176   933,169   785,882 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Term Loan 1/21 Loan  3M USD LIBOR+  4.25%  0.50%  8.66% 1/7/2028  493,750   490,951   443,550 
PATAGONIA HOLDCO LLC Telecommunications Term Loan B Loan  3M USD SOFR+  5.75%  0.50%  9.96% 8/1/2029  2,000,000   1,649,490   1,595,000 
Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan  3M USD LIBOR+  3.75%  0.00%  7.42% 3/30/2027  487,750   480,036   427,654 
PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan  1M USD LIBOR+  2.50%  0.00%  6.57% 5/29/2026  809,038   806,747   797,914 
PEARLS (Netherlands) Bidco B.V. Chemicals, Plastics, & Rubber USD Term Loan (02/22) Loan  3M USD SOFR+  3.75%  0.50%  7.84% 2/28/2029  995,000   992,881   935,300 
PECF USS INTERMEDIATE HOLDING III CORPORATION Environmental Industries Term Loan B Loan  1M USD LIBOR+  4.25%  0.50%  8.32% 12/15/2028  99,250   99,066   80,062 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC Healthcare & Pharmaceuticals Term Loan (12/22) Loan  1M USD LIBOR+  3.25%  0.50%  7.32% 12/29/2028  1,296,118   1,290,361   1,236,173 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (12/21) Loan  1M USD LIBOR+  3.25%  0.00%  7.32% 12/29/2028  98,192   98,191   89,086 
Penn National Gaming, Inc Hotel, Gaming & Leisure Term Loan B Loan  1M USD SOFR+  2.75%  0.50%  6.94% 5/3/2029  997,500   992,732   982,538 
Peraton Corp. Aerospace & Defense Term Loan B Loan  1M USD LIBOR+  3.75%  0.75%  7.82% 2/1/2028  5,320,330   5,302,168   5,187,322 
PHYSICIAN PARTNERS, LLC Healthcare & Pharmaceuticals Term Loan Loan  1M USD SOFR+  4.00%  0.50%  7.83% 12/23/2028  1,990,000   1,972,070   1,906,679 
Pike Corporation Construction & Building Term Loan (8/22) Loan  1M USD SOFR+  3.50%  0.00%  7.59% 1/21/2028  500,000   487,996   493,440 
Pitney Bowes Inc Services: Business Term Loan B Loan  1M USD LIBOR+  4.00%  0.00%  8.08% 3/17/2028  3,949,950   3,923,336   3,485,830 


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 
Plastipak Holdings Inc. Containers, Packaging & Glass Term Loan B (11/21) Loan  1M USD LIBOR+  2.50%  0.50%  6.63% 12/1/2028  1,926,176   1,917,700   1,894,876 
Playtika Holding Corp. High Tech Industries Term Loan B (3/21) Loan  1M USD LIBOR+  2.75%  0.00%  6.82% 3/13/2028  4,432,500   4,424,551   4,314,773 
PMHC II, INC. Chemicals, Plastics, & Rubber Term Loan (02/22) Loan  3M USD SOFR+  4.25%  0.50%  8.49% 4/21/2029  2,000,000   1,990,654   1,675,460 
PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan  6M USD LIBOR+  3.00%  0.75%  5.94% 12/29/2027  492,500   490,628   483,881 
Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan  1M USD LIBOR+  4.75%  0.75%  8.82% 2/12/2028  5,417,500   5,370,088   4,984,100 
Pre-Paid Legal Services, Inc. Services: Consumer Term Loan (12/21) Loan  1M USD LIBOR+  3.75%  0.50%  7.82% 12/15/2028  2,985,000   2,963,044   2,875,540 
Presidio, Inc. Services: Business Term Loan B (1/20) Loan  1M USD LIBOR+  3.50%  0.00%  7.58% 1/22/2027  488,750   488,069   482,030 
Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan  3M USD LIBOR+  2.75%  0.75%  6.50% 9/23/2026  3,529,426   3,529,238   3,476,061 
PRIORITY HOLDINGS, LLC Services: Consumer Term Loan Loan  1M USD LIBOR+  5.75%  1.00%  9.82% 4/27/2027  2,962,500   2,938,467   2,932,875 
PriSo Acquisition Corporation Construction & Building Term Loan (01/21) Loan  3M USD LIBOR+  3.25%  0.75%  6.99% 12/28/2027  492,496   490,547   426,625 
Project Leopard Holdings, Inc. (NEW) High Tech Industries Term Loan B (06/22) Loan  6M USD SOFR+  5.25%  0.50%  9.80% 7/20/2029  1,000,000   932,616   898,130 
Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan  1M USD LIBOR+  3.00%  1.00%  6.75% 1/29/2025  477,675   476,864   430,505 
PUG LLC Services: Consumer Term Loan B (02/20) Loan  1M USD LIBOR+  3.50%  0.00%  7.57% 2/12/2027  481,363   479,824   411,565 
QUEST BORROWER LIMITED High Tech Industries Term Loan (1/22) Loan  3M USD SOFR+  4.25%  0.50%  8.49% 2/1/2029  1,995,000   1,977,057   1,508,100 
Rackspace Technology Global, Inc. High Tech Industries Term Loan (1/21) Loan  3M USD LIBOR+  2.75%  0.75%  7.38% 2/15/2028  2,982,393   2,886,345   1,996,145 
RealPage, Inc. High Tech Industries Term Loan (04/21) Loan  1M USD LIBOR+  3.00%  0.50%  7.07% 4/24/2028  990,000   988,102   946,074 
Renaissance Learning, Inc. Services: Consumer Term Loan (5/18) Loan  1M USD LIBOR+  3.25%  0.00%  7.32% 5/30/2025  2,946,065   2,927,716   2,817,174 
Rent-A-Center, Inc. Retail Term Loan B2 (9/21) Loan  3M USD LIBOR+  3.25%  0.50%  7.69% 2/17/2028  1,981,184   1,937,632   1,899,460 
Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan  6M USD LIBOR+  5.50%  1.00%  8.84% 12/20/2024  4,309,446   4,253,234   3,724,094 
Resideo Funding Inc. Services: Consumer Term Loan (1/21) Loan  3M USD LIBOR+  2.25%  0.50%  6.88% 2/11/2028  1,477,500   1,475,275   1,445,187 


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 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan  3M USD LIBOR+  4.25%  1.00%  7.92% 4/30/2024  3,050,137   3,045,658   2,539,239 
Restoration Hardware, Inc. Retail Term Loan (9/21) Loan  1M USD LIBOR+  2.50%  0.50%  6.57% 10/20/2028  3,471,203   3,464,339   3,262,931 
Reynolds Consumer Products LLC Containers, Packaging & Glass Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  5.82% 1/29/2027  1,280,682   1,279,978   1,265,032 
Reynolds Group Holdings Inc. Containers, Packaging & Glass Term Loan B2 Loan  1M USD LIBOR+  3.25%  0.00%  7.32% 2/5/2026  3,438,750   3,425,975   3,385,312 
Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan  1M USD LIBOR+  4.25%  0.00%  8.32% 11/28/2025  2,882,785   2,876,646   2,774,680 
Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan  1M USD LIBOR+  3.50%  1.00%  7.57% 6/2/2025  5,590,662   5,561,436   5,241,245 
RV Retailer LLC Automotive Term Loan Loan  1M USD SOFR+  3.75%  0.75%  7.76% 2/8/2028  2,965,100   2,917,914   2,683,415 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+  3.00%  0.75%  7.19% 9/1/2027  1,482,405   1,470,362   1,470,916 
S&S HOLDINGS LLC Services: Business Term Loan Loan  1M USD LIBOR+  5.00%  0.50%  8.88% 3/10/2028  2,464,975   2,414,138   2,239,011 
Sally Holdings LLC Retail Term Loan B Loan  1M USD LIBOR+  2.25%  0.00%  6.33% 7/5/2024  740,909   739,836   735,967 
Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan  1M USD LIBOR+  3.00%  0.75%  7.07% 4/25/2025  930,018   915,255   918,393 
Schweitzer-Mauduit International, Inc. High Tech Industries Term Loan B Loan  1M USD LIBOR+  3.75%  0.75%  7.88% 4/20/2028  2,962,500   2,948,735   2,762,531 
Scientific Games Holdings LP Hotel, Gaming & Leisure Term Loan B Loan  3M USD SOFR+  3.50%  0.50%  7.10% 4/4/2029  500,000   498,841   476,875 
SETANTA AIRCRAFT LEASING DAC Aerospace & Defense Term Loan Loan  3M USD LIBOR+  2.00%  0.00%  5.67% 11/2/2028  1,000,000   997,801   986,460 
Signify Health, LLC Healthcare & Pharmaceuticals Term Loan B (6/21) Loan  6M USD LIBOR+  3.00%  0.50%  5.88% 6/16/2028  495,000   492,934   488,402 
Sitel Worldwide Corporation Services: Business USD Term Loan (7/21) Loan  1M USD LIBOR+  3.75%  0.50%  7.83% 8/28/2028  1,980,000   1,971,561   1,959,368 
SiteOne Landscape Supply, LLC Services: Business Term Loan (3/21) Loan  1M USD LIBOR+  2.00%  0.50%  6.08% 3/18/2028  779,831   778,270   771,386 
SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan  3M USD LIBOR+  2.50%  0.00%  6.91% 1/23/2025  486,250   486,250   468,930 
Solis IV B.V. Consumer goods: Durable Term Loan B-1 Loan  3M USD SOFR+  3.50%  0.50%  7.86% 2/26/2029  2,000,000   1,721,336   1,741,080 
Sotheby’s Services: Business Term Loan (7/21) Loan  3M USD LIBOR+  4.50%  0.50%  8.58% 1/15/2027  3,231,926   3,189,216   3,146,409 
Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber Term Loan (04/21) Loan  1M USD LIBOR+  3.25%  0.75%  7.05% 8/2/2028  1,985,000   1,976,688   1,922,473 
Specialty Pharma III Inc. Services: Business Term Loan Loan  1M USD LIBOR+  4.25%  0.75%  8.00% 3/31/2028  1,980,000   1,964,131   1,816,650 


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 
Spectrum Brands, Inc. Consumer goods: Durable Term Loan (2/21) Loan  3M USD LIBOR+  2.00%  0.50%  6.42% 3/3/2028  492,500   491,539   479,572 
Spin Holdco, Inc. Services: Consumer Term Loan 3/21 Loan  3M USD LIBOR+  4.00%  0.75%  7.14% 3/4/2028  2,947,500   2,933,856   2,629,406 
Spirit Aerosystems Inc. Aerospace & Defense Term Loan (11/22) Loan  1M USD SOFR+  4.50%  0.50%  6.80% 11/7/2027  500,000   485,000   493,335 
SRAM, LLC Consumer goods: Durable Term Loan (05/21) Loan  1M USD LIBOR+  2.75%  0.50%  6.82% 5/12/2028  3,000,000   2,995,894   2,936,250 
SS&C Technologies, Inc. Services: Business Term Loan B4 Loan  1M USD LIBOR+  1.75%  0.00%  5.82% 4/16/2025  153,114   152,984   150,179 
SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan  1M USD LIBOR+  1.75%  0.00%  5.82% 4/16/2025  473,700   473,211   464,491 
SS&C Technologies, Inc. Services: Business Term Loan B3 Loan  1M USD LIBOR+  1.75%  0.00%  5.82% 4/16/2025  183,262   183,104   179,749 
STANDARD INDUSTRIES INC. Construction & Building Term Loan B Loan  6M USD LIBOR+  2.25%  0.50%  6.43% 9/22/2028  632,750   627,463   625,239 
Staples, Inc. Wholesale Term Loan (03/19) Loan  3M USD LIBOR+  5.00%  0.00%  9.44% 4/16/2026  4,352,633   4,251,014   3,874,279 
Stars Group Inc. (The) Hotel, Gaming & Leisure Term Loan Loan  3M USD LIBOR+  2.25%  0.00%  5.89% 7/21/2026  1,980,000   1,976,516   1,953,052 
Storable, Inc High Tech Industries Term Loan B Loan  1M USD SOFR+  3.50%  0.50%  7.59% 4/17/2028  496,250   495,321   472,991 
Superannuation & Investments US LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  3.75%  0.50%  7.82% 12/1/2028  992,500   983,754   967,688 
Syncsort Incorporated High Tech Industries Term Loan B (10/21) Loan  3M USD LIBOR+  4.00%  0.75%  8.36% 4/24/2028  2,476,241   2,475,172   2,033,613 
Ta TT Buyer LLC Media: Broadcasting & Subscription Term Loan 3/22 Loan  6M USD SOFR+  5.00%  0.50%  8.98% 4/2/2029  1,000,000   990,510   972,500 
Tenable Holdings, Inc. Services: Business Term Loan B (6/21) Loan  3M USD LIBOR+  2.75%  0.50%  7.16% 7/7/2028  992,500   990,345   962,725 
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+  5.25%  1.00%  9.44% 7/15/2025  4,394,543   4,336,215   4,200,920 
Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  4.00%  1.00%  8.07% 9/27/2024  1,905,000   1,903,733   1,727,606 
The Dun & Bradstreet Corporation Services: Business Term Loan B Loan  1M USD SOFR+  3.25%  0.00%  7.31% 1/18/2029  248,750   247,080   244,708 
The Dun & Bradstreet Corporation Services: Business Term Loan Loan  1M USD LIBOR+  3.25%  0.00%  7.29% 2/6/2026  965,474   964,449   951,475 
THE KNOT WORLDWIDE INC. Services: Consumer Term Loan (1/22) Loan  1M USD SOFR+  4.50%  0.00%  8.69% 12/19/2025  4,857,621   4,852,397   4,748,325 


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 
Thor Industries, Inc. Automotive USD Term Loan (3/21) Loan  1M USD LIBOR+  3.00%  0.00%  7.13% 2/1/2026  2,062,565   2,033,826   2,041,939 
TORY BURCH LLC Retail Term Loan Loan  1M USD LIBOR+  3.25%  0.50%  7.32% 4/15/2028  1,332,585   1,231,826   1,236,532 
Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan  1M USD SOFR+  3.50%  0.75%  7.70% 8/18/2027  491,250   486,049   397,913 
Trans Union LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+  2.25%  0.50%  6.32% 12/1/2028  863,468   861,596   848,141 
Transdigm, Inc. Aerospace & Defense Term Loan G (02/20) Loan  3M USD LIBOR+  2.25%  0.00%  5.92% 8/22/2024  1,993,370   1,990,733   1,983,582 
TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco Term Loan (03/21) Loan  3M USD LIBOR+  3.50%  0.50%  7.17% 3/31/2028  1,481,252   1,475,215   1,362,751 
Tronox Finance LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+  2.25%  0.00%  6.32% 3/10/2028  346,923   346,250   334,077 
TruGreen Limited Partnership Services: Consumer Term Loan Loan  1M USD LIBOR+  4.00%  0.75%  8.07% 10/29/2027  956,936   951,201   850,237 
Uber Technologies, Inc. Transportation: Consumer Term Loan B (2/21) Loan  3M USD LIBOR+  3.50%  0.00%  8.23% 2/25/2027  3,916,693   3,883,352   3,900,792 
Ultra Clean Holdings, Inc. High Tech Industries Incremental Term Loan 3/21 Loan  1M USD LIBOR+  3.75%  0.00%  7.82% 8/27/2025  826,588   823,809   818,669 
Unimin Corporation Metals & Mining Term Loan (12/20) Loan  3M USD LIBOR+  4.00%  1.00%  7.75% 7/31/2026  496,815   475,129   478,805 
United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan  1M USD SOFR+  3.25%  0.00%  7.45% 10/22/2025  1,289,967   1,249,790   1,282,524 
United Road Services Inc. Transportation: Cargo Term Loan (10/17) Loan  3M USD LIBOR+  5.75%  1.00%  10.48% 9/1/2024  897,096   893,251   540,222 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/21) Loan  1M USD LIBOR+  3.25%  0.75%  7.32% 3/15/2026  2,452,858   2,447,168   2,406,867 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/22) Loan  3M USD SOFR+  4.25%  0.50%  7.79% 6/25/2029  249,375   242,238   245,634 
Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan  1M USD SOFR+  3.00%  0.00%  7.20% 1/20/2028  1,833,129   1,831,067   1,816,759 
Vaco Holdings, LLC Services: Business Term Loan (01/22) Loan  3M USD SOFR+  5.00%  0.75%  8.70% 1/19/2029  2,348,125   2,278,466   2,238,068 
Vericast Corp. Media: Advertising, Printing & Publishing Term Loan Loan  1M USD SOFR+  7.75%  1.00%  12.20% 6/15/2026  1,201,006   1,198,561   865,481 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan  3M USD LIBOR+  4.00%  0.00%  8.36% 8/20/2025  1,371,603   1,367,428   1,236,377 
Vertex Aerospace Services Corp Aerospace & Defense Term Loan (10/21) Loan  1M USD LIBOR+  3.50%  0.75%  7.57% 12/6/2028  995,000   990,757   976,095 
VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan (01/22) Loan  1M USD SOFR+  3.00%  0.50%  7.01% 1/12/2029  3,100,888   3,093,458   3,007,861 
Viasat Inc Telecommunications Term Loan (2/22) Loan  1M USD SOFR+  4.50%  0.50%  8.70% 3/2/2029  2,000,000   1,952,500   1,938,340 


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 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (9/21) Loan  1M USD LIBOR+  2.25%  0.00%  6.13% 9/28/2028  2,860,909   2,852,781   2,832,300 
Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan  1M USD LIBOR+  1.75%  0.00%  5.82% 12/31/2025  899,555   899,171   891,585 
Vizient, Inc Healthcare & Pharmaceuticals Term Loan 4/22 Loan  1M USD SOFR+  2.25%  0.50%  6.26% 5/16/2029  498,750   494,003   497,628 
VM Consolidated, Inc. Construction & Building Term Loan B (3/21) Loan  6M USD LIBOR+  3.25%  0.00%  6.13% 3/19/2028  2,321,650   2,318,845   2,301,916 
Vouvray US Finance LLC High Tech Industries Term Loan Loan  1M USD SOFR+  6.00%  1.00%  10.09% 9/9/2025  472,500   472,500   432,338 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan Incremental (11/22) Loan  1M USD SOFR+  3.00%  0.50%  6.74% 1/19/2028  500,000   490,140   495,000 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G Loan  1M USD LIBOR+  2.13%  0.00%  6.20% 1/20/2028  1,250,000   1,249,790   1,229,163 
Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries Term Loan (3/18) Loan  1M USD LIBOR+  3.75%  1.00%  6.12% 3/15/2025  -   1,433   - 
Watlow Electric Manufacturing Company High Tech Industries Term Loan B Loan  3M USD SOFR+  3.75%  0.50%  8.15% 3/2/2028  2,462,500   2,452,584   2,369,122 
West Corporation Telecommunications Term Loan B Loan  3M USD LIBOR+  3.50%  1.00%  7.91% 10/10/2024  2,552,943   2,526,180   2,336,913 
West Corporation Telecommunications Term Loan B (Olympus Merger) Loan  3M USD LIBOR+  4.00%  1.00%  8.41% 10/10/2024  1,066,719   1,038,809   976,933 
WEX Inc. Services: Business Term Loan B (3/21) Loan  1M USD LIBOR+  2.25%  0.00%  6.32% 3/31/2028  2,962,443   2,952,632   2,922,954 
WildBrain Ltd. Media: Diversified & Production Term Loan Loan  1M USD SOFR+  4.25%  0.75%  8.45% 3/27/2028  1,970,000   1,938,530   1,808,302 
WP CITYMD BIDCO LLC Services: Consumer Term Loan B Loan  3M USD LIBOR+  3.25%  0.50%  6.92% 12/22/2028  2,386,892   2,384,404   2,374,218 
Xperi Corporation High Tech Industries Term Loan Loan  1M USD LIBOR+  3.50%  0.00%  7.57% 6/8/2028  2,636,170   2,627,091   2,543,904 
Zayo Group, LLC Telecommunications Term Loan 4/22 Loan  1M USD SOFR+  4.25%  0.50%  8.34% 3/9/2027  995,000   972,188   773,055 
ZEBRA BUYER (Allspring) LLC Banking, Finance, Insurance & Real Estate Term Loan 4/21 Loan  3M USD LIBOR+  3.00%  0.50%  6.69% 11/1/2028  882,661   878,966   869,792 
Zekelman Industries, Inc. Metals & Mining Term Loan (01/20) Loan  3M USD LIBOR+  2.00%  0.00%  5.60% 1/25/2027  963,332   963,332   938,449 
Zodiac Pool Solutions Consumer goods: Durable Term Loan (1/22) Loan  1M USD SOFR+  2.00%  0.50%  6.19% 1/29/2029  496,250   495,152   477,431 
                            $643,842,672  $592,897,897 

  Number of Shares  Cost  Fair Value 
Cash and cash equivalents         
U.S. Bank Money Market (c)  16,640,269  $16,640,269  $16,640,269 
Total cash and cash equivalents  16,640,269  $16,640,269  $16,640,269 

 

(a)(a)All or a portion of this investment has an unfunded commitment as of August 31,November 30, 2022

(b)(b)As of August 31,November 30, 2022, the investment was in default and on non-accrual status.

(c)(c)Included within cash and cash equivalents in Saratoga CLO’s Statements of Assets and Liabilities as of August 31,November 30, 2022.

(d)(d)Investments include Payment-in-Kind Interest.

 

LIBOR—London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

WIBOR - Warsaw Interbank Offered Rate

 

1M USD LIBOR—The 1 month USD LIBOR rate as of August 31,November 30, 2022 was 2.56%4.14%.

3M USD LIBOR—The 3 month USD LIBOR rate as of August 31,November 30, 2022 was 3.08%4.78%.

6M USD LIBOR—The 6 month USD LIBOR rate as of August 31,November 30, 2022 was 3.60%.

12M USD LIBOR - The 12 month USD LIBOR rate as of August 31, 2022 was 4.16%.

3 PL WIBOR - The 3 month PL WIBOR rate as of August 31, 2022 was 7.11%.

Daily SOFR- The daily SOFR rate as of August 31, 2022 was 2.29%5.20%.

1M SOFR - The 1 month SOFR rate as of August 31,November 30, 2022 was 2.28%4.13%.

3M SOFR - The 3 month SOFR rate as of August 31,November 30, 2022 was 1.68%4.41%.

6M SOFR - The 6 month SOFR rate as of November 30, 2022 was 4.70%.

Prime—The Prime Rate as of August 31,November 30, 2022 was 5.50%7.00%.

See accompanying notes to consolidated financial statements.


Saratoga Investment Corp. CLO 2013-1, Ltd.

Schedule of Investments

February 28, 2022

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 
Fusion Connect Warrant Telecommunications Warrants Equity -  -   -   -  -  32,832   -   - 
J Jill Common Stock Retail Common stock Equity -  -   -   -  -  2,107   -   33,691 
19TH HOLDINGS GOLF, LLC Consumer goods: Durable Term Loan Loan 3M USD SOFR+  3.25%  0.50%  3.75% 2/7/2029  500,000   497,530   493,750 
ADMI Corp. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+  2.75%  0.00%  2.96% 4/30/2025  1,930,276   1,925,558   1,892,886 
Adtalem Global Education Inc. Services: Business Term Loan B (02/21) Loan 1M USD LIBOR+  4.50%  0.75%  5.25% 8/11/2028  2,000,000   1,981,559   1,977,920 
Aegis Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  5.50%  1.00%  6.50% 5/9/2025  2,737,038   2,723,587   2,686,403 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (1/19) Loan 1M USD LIBOR+  2.75%  0.00%  2.88% 1/4/2026  1,483,686   1,476,852   1,470,704 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (09/20) Loan 1M USD LIBOR+  2.75%  0.75%  3.50% 1/4/2026  285,714   283,586   283,571 
AHEAD DB Holdings, LLC Services: Business Term Loan (04/21) Loan 3M USD LIBOR+  3.75%  0.75%  4.50% 10/18/2027  2,985,000   2,885,411   2,962,135 
AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense Term Loan B (USD) Loan 6M USD LIBOR+  3.50%  1.00%  4.50% 1/18/2027  1,469,671   1,464,591   1,460,485 
AIS HoldCo, LLC Services: Business Term Loan Loan 3M USD LIBOR+  5.00%  0.00%  5.30% 8/15/2025  4,789,642   4,670,148   4,705,823 
Alchemy Copyrights, LLC Media: Diversified & Production Term Loan B Loan 1M USD LIBOR+  3.00%  0.50%  3.50% 3/10/2028  493,763   490,886   489,442 
Alchemy US Holdco 1, LLC Metals & Mining Term Loan Loan 1M USD LIBOR+  5.50%  0.00%  5.60% 10/10/2025  1,654,803   1,640,863   1,644,874 
AlixPartners, LLP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan 1M USD LIBOR+  2.75%  0.50%  3.25% 2/4/2028  248,125   247,608   245,217 
Alkermes, Inc. Healthcare & Pharmaceuticals Term Loan B (3/21) Loan 3M USD LIBOR+  2.50%  0.50%  3.00% 3/12/2026  2,147,859   2,130,749   2,110,271 
Allen Media, LLC Media: Diversified & Production Term Loan (7/21) Loan 3M USD LIBOR+  5.50%  0.00%  5.72% 2/10/2027  4,439,454   4,407,744   4,412,639 
Alliant Holdings I, Inc. Banking, Finance, Insurance & Real Estate Term Loan B4 Loan 1M USD LIBOR+  3.50%  0.50%  4.00% 11/5/2027  997,500   996,393   987,944 
Allied Universal Holdco LLC Services: Business Term Loan 4/21 Loan 3M USD LIBOR+  3.75%  0.50%  4.25% 5/12/2028  1,995,000   1,985,516   1,966,412 
Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate Term Loan B (03/18) Loan 3M USD LIBOR+  4.00%  1.00%  5.00% 4/3/2024  1,223,297   1,220,031   1,102,497 
Altium Packaging LLC Containers, Packaging & Glass Term Loan (01/21) Loan 1M USD LIBOR+  2.75%  0.50%  3.25% 1/29/2028  496,250   494,097   485,084 
American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan Loan 1M USD LIBOR+  4.50%  1.00%  5.50% 4/6/2024  3,012,861   3,011,323   3,011,355 
American Trailer World Corp Automotive Term Loan Loan 1M USD LIBOR+  3.75%  0.75%  4.50% 3/3/2028  1,990,000   1,984,442   1,954,558 
AmeriLife Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  4.00%  0.00%  4.11% 3/18/2027  1,976,415   1,967,087   1,956,651 
AmWINS Group, LLC Banking, Finance, Insurance & Real Estate Term Loan 2/21 Loan 1M USD LIBOR+  2.25%  0.75%  3.00% 2/17/2028  1,980,006   1,957,163   1,946,900 
Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+  3.75%  0.00%  3.97% 8/11/2025  967,500   964,919   832,253 
Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan 3M USD LIBOR+  2.75%  1.00%  3.75% 12/7/2023  475,113   474,420   406,882 
Anchor Packaging, LLC Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+  4.00%  0.00%  4.21% 7/18/2026  987,342   979,469   972,532 
ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+  6.00%  0.75%  6.75% 11/19/2027  3,000,000   2,943,100   3,000,000 
AP Core Holdings II LLC High Tech Industries Term Loan B1 Loan 1M USD LIBOR+  5.50%  0.75%  6.25% 9/1/2027  1,975,000   1,947,406   1,965,125 
AP Core Holdings II LLC High Tech Industries Term Loan B2 Loan 1M USD LIBOR+  5.50%  0.75%  6.25% 9/1/2027  500,000   493,024   498,125 
APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan 1M USD LIBOR+  2.50%  0.00%  2.71% 10/1/2026  1,950,000   1,942,029   1,927,575 
APLP Holdings Limited Partnership Energy: Electricity Term Loan B (3/21) Loan 1M USD LIBOR+  3.75%  1.00%  4.75% 5/14/2027  828,378   821,051   826,655 

 


 

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 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.75%  0.00%  2.86% 5/15/2026  2,969,543   2,937,176   2,887,881 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 (2/21) Loan 1M USD LIBOR+  3.50%  0.50%  4.00% 3/6/2028  992,500   983,643   982,575 
AppLovin Corporation High Tech Industries Term Loan B Loan 1M USD LIBOR+  3.25%  0.00%  3.46% 8/15/2025  989,796   989,796   982,066 
AppLovin Corporation High Tech Industries Term Loan (10/21) Loan 1M USD LIBOR+  3.00%  0.50%  3.50% 10/21/2028  1,496,250   1,492,669   1,481,288 
Aramark Corporation Services: Consumer Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  1.96% 1/15/2027  2,331,250   2,268,549   2,279,776 
Aramark Corporation Services: Consumer Term Loan B (4/21) Loan 1M USD LIBOR+  2.50%  0.00%  2.71% 4/1/2028  1,753,715   1,746,008   1,743,491 
ARC FALCON I INC. Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+  3.75%  0.50%  4.25% 9/23/2028  872,611   868,610   855,526 
ARC FALCON I INC. (a) Chemicals, Plastics, & Rubber Delayed Draw Term Loan Loan N/A  N/A   N/A   N/A  9/22/2028  -   (601)  (2,494)
Arches Buyer Inc. Services: Consumer Term Loan B Loan 1M USD LIBOR+  3.25%  0.50%  3.75% 12/6/2027  1,500,000   1,490,625   1,473,570 
Arctic Glacier U.S.A., Inc. Beverage, Food & Tobacco Term Loan (3/18) Loan 3M USD LIBOR+  3.50%  1.00%  4.50% 3/20/2024  3,350,967   3,341,474   3,103,833 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan 1M USD LIBOR+  4.25%  0.00%  4.46% 10/1/2025  2,436,164   2,430,830   2,425,518 
ASP BLADE HOLDINGS, INC. Capital Equipment Term Loan Loan 1M USD LIBOR+  4.00%  0.50%  4.50% 10/7/2028  100,000   99,530   99,542 
Asplundh Tree Expert, LLC Services: Business Term Loan 2/21 Loan 1M USD LIBOR+  1.75%  0.00%  1.96% 9/7/2027  987,500   983,579   973,458 
AssuredPartners Capital, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (2/20) Loan 1M USD LIBOR+  3.50%  0.00%  3.71% 2/12/2027  1,000,000   996,250   984,580 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Incremental Term Loan (7/21) Loan 1M USD LIBOR+  3.50%  0.50%  4.00% 2/12/2027  995,006   995,006   978,837 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+  3.50%  0.50%  4.00% 2/12/2027  500,000   498,811   491,875 
ASTRO ONE ACQUISITION CORPORATION Consumer goods: Durable Term Loan Loan 1M USD LIBOR+  5.50%  0.75%  6.25% 9/15/2028  3,000,000   2,971,643   2,968,140 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B6 Loan 1M USD LIBOR+  3.13%  0.00%  3.33% 11/3/2023  266,824   266,095   264,767 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan 1M USD LIBOR+  3.25%  0.00%  3.46% 12/18/2026  2,995,112   2,984,120   2,939,882 
ATHENAHEALTH GROUP INC. Healthcare & Pharmaceuticals Term Loan B (2/22) Loan 1M USD SOFR+  3.50%  0.50%  4.00% 2/15/2029  1,282,609   1,276,322   1,269,462 
ATHENAHEALTH GROUP INC. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (02/22) Loan N/A  N/A   N/A   N/A  2/15/2029  -   -   (2,228)
Avast Software S.R.O. (Sybil Finance) High Tech Industries Term Loan (Sybil Software) Loan 3M USD LIBOR+  2.00%  0.00%  2.22% 3/22/2028  1,925,000   1,920,766   1,916,819 
Avaya, Inc. Telecommunications Term Loan B1 Loan 1M USD LIBOR+  4.25%  0.00%  4.44% 12/15/2027  1,755,766   1,747,367   1,739,859 
Avaya, Inc. Telecommunications Term Loan B-2 (2/21) Loan 1M USD LIBOR+  4.00%  0.00%  4.19% 12/15/2027  1,000,000   1,000,000   988,590 
Avison Young (Canada) Inc Services: Business Term Loan Loan 3M USD LIBOR+  5.75%  0.00%  5.97% 1/31/2026  3,405,995   3,370,219   3,371,935 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3 Loan 1M USD LIBOR+  1.75%  0.75%  2.50% 1/15/2025  1,000,000   900,020   990,630 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 (7/21) Loan 1M USD LIBOR+  2.25%  0.50%  2.75% 12/1/2027  495,000   490,860   491,466 
AZURITY PHARMACEUTICALS, INC. Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+  6.00%  0.75%  6.75% 9/20/2027  500,000   485,751   495,000 
B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  2.71% 10/10/2026  706,458   701,732   701,605 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan 1M USD LIBOR+  1.75%  0.00%  1.96% 11/19/2026  1,470,000   1,438,969   1,440,968 
BAKELITE UK INTERMEDIATE LTD. Chemicals, Plastics, & Rubber Term Loan Loan 3M USD SOFR+  4.25%  0.00%  4.75% 2/1/2029  1,000,000   995,000   992,500 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  3.50%  0.50%  4.00% 10/14/2027  1,238,775   1,225,981   1,222,522 
Belfor Holdings Inc. Services: Consumer Term Loan Loan 1M USD LIBOR+  3.75%  0.00%  3.96% 4/6/2026  248,092   247,897   246,851 
Belron Finance US LLC Automotive Term Loan B (3/21) Loan 3M USD LIBOR+  2.75%  0.50%  3.25% 4/13/2028  1,985,000   1,967,341   1,968,247 

Saratoga Investment Corp. CLO 2013-1, Ltd.


Schedule of Investments

February 28, 2022

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 
Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Term Loan Loan 3M USD SOFR+  3.25%  0.50%  3.75% 1/24/2029  1,890,909   1,889,030   1,873,191 
Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Delayed Draw Term Loan Loan 3M USD SOFR+  3.25%  0.50%  3.75% 1/24/2029  109,091   109,048   108,069 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.25%  0.00%  2.46% 4/23/2026  989,873   983,805   967,601 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan (6/21) Loan 1M USD LIBOR+  2.75%  0.50%  3.25% 4/23/2026  1,480,053   1,470,897   1,464,335 
Blucora, Inc. Services: Consumer Term Loan (11/17) Loan 3M USD LIBOR+  4.00%  1.00%  5.00% 5/22/2024  2,443,339   2,437,898   2,437,230 
Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber Term Loan (2/21) Loan 3M USD LIBOR+  2.50%  0.00%  2.72% 3/4/2028  992,500   990,307   983,200 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan 1M USD LIBOR+  2.00%  0.00%  2.21% 5/24/2027  1,470,049   1,461,460   1,442,486 
Boxer Parent Company, Inc. High Tech Industries Term Loan (2/21) Loan 3M USD LIBOR+  3.75%  0.00%  3.97% 10/2/2025  522,846   522,846   516,310 
Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  4.25%  0.00%  4.47% 9/5/2025  967,500   964,897   959,034 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Term Loan B-3 Loan 1M USD LIBOR+  3.50%  0.00%  3.66% 3/5/2026  992,500   992,500   980,342 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan 1M USD LIBOR+  3.00%  0.00%  3.21% 1/22/2027  2,979,108   2,973,591   2,930,697 
Brookfield WEC Holdings Inc. Energy: Electricity Term Loan (1/21) Loan 1M USD LIBOR+  2.75%  0.50%  3.25% 8/1/2025  1,477,538   1,479,743   1,453,528 
Buckeye Partners, L.P. Utilities: Oil & Gas Term Loan (1/21) Loan 1M USD LIBOR+  2.25%  0.00%  2.36% 11/1/2026  1,970,088   1,958,262   1,946,565 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+  3.50%  0.50%  4.00% 3/31/2028  2,487,500   2,465,358   2,475,063 
Callaway Golf Company Retail Term Loan B Loan 1M USD LIBOR+  4.50%  0.00%  4.71% 1/4/2026  682,500   673,958   681,005 
CareerBuilder, LLC Services: Business Term Loan Loan 3M USD LIBOR+  6.75%  1.00%  7.75% 7/31/2023  5,393,388   5,246,921   4,159,650 
CareStream Health, Inc. Healthcare & Pharmaceuticals Term Loan Loan 6M USD LIBOR+  6.75%  1.00%  7.75% 5/8/2023  2,184,163   2,181,757   2,184,163 
Casa Systems, Inc Telecommunications Term Loan Loan 1M USD LIBOR+  4.00%  1.00%  5.00% 12/20/2023  1,391,125   1,387,217   1,349,391 
Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan 3M USD LIBOR+  3.75%  0.00%  3.97% 1/27/2027  1,980,130   1,968,915   1,934,864 
CBI BUYER, INC. Consumer goods: Durable Term Loan Loan 3M USD LIBOR+  3.25%  0.50%  3.75% 1/6/2028  995,000   992,948   963,906 
CCC Intelligent Solutions Inc. Services: Business Term Loan B Loan 3M USD LIBOR+  2.50%  0.50%  3.00% 9/16/2028  250,000   249,432   246,875 
CCI Buyer, Inc Telecommunications Term Loan Loan 3M USD LIBOR+  3.75%  0.75%  4.50% 12/17/2027  248,125   246,017   245,257 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+  3.75%  0.75%  4.50% 3/5/2028  992,500   988,070   986,297 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+  5.50%  0.00%  5.71% 9/25/2025  2,425,000   2,412,003   2,371,456 
Cengage Learning, Inc. Media: Advertising, Printing & Publishing Term Loan B (6/21) Loan 6M USD LIBOR+  4.75%  1.00%  5.75% 7/14/2026  2,992,500   2,966,179   2,985,019 
CENTURI GROUP, INC. Construction & Building Term Loan B Loan 1M USD LIBOR+  2.50%  0.50%  3.00% 8/27/2028  931,998   923,210   923,647 
CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan 1M USD LIBOR+  2.25%  0.00%  2.46% 3/15/2027  3,929,899   3,924,411   3,823,045 
Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  1.96% 4/3/2025  915,661   880,331   896,780 
Churchill Downs Incorporated Hotel, Gaming & Leisure Term Loan B1 (3/21) Loan 1M USD LIBOR+  2.00%  0.00%  2.21% 3/17/2028  496,250   495,147   489,427 
CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing USD Term Loan Loan 1M USD LIBOR+  3.50%  0.50%  4.00% 5/17/2028  995,000   986,097   987,538 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan 1M USD SOFR+  2.50%  0.00%  2.69% 2/2/2028  4,962,500   4,957,863   4,911,089 
Clarios Global LP Automotive Term Loan B1 Loan 1M USD LIBOR+  3.25%  0.00%  3.46% 4/30/2026  1,267,812   1,259,559   1,253,549 


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 
Fusion Connect Warrant Telecommunications Warrants Equity - -   -   -  -  32,832  -  - 
J Jill Common Stock Retail Common stock Equity - -   -   -  -  2,107  -  33,691 
19TH HOLDINGS GOLF, LLC Consumer goods: Durable Term Loan Loan  3M USD SOFR+ 3.25%  0.50%  3.75% 2/7/2029  500,000  497,530  493,750 
ADMI Corp. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+ 2.75%  0.00%  2.96% 4/30/2025  1,930,276  1,925,558  1,892,886 
Adtalem Global Education Inc. Services: Business Term Loan B (02/21) Loan  1M USD LIBOR+ 4.50%  0.75%  5.25% 8/11/2028  2,000,000  1,981,559  1,977,920 
Aegis Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+ 5.50%  1.00%  6.50% 5/9/2025  2,737,038  2,723,587  2,686,403 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (1/19) Loan  1M USD LIBOR+ 2.75%  0.00%  2.88% 1/4/2026  1,483,686  1,476,852  1,470,704 
Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (09/20) Loan  1M USD LIBOR+ 2.75%  0.75%  3.50% 1/4/2026  285,714  283,586  283,571 
AHEAD DB Holdings, LLC Services: Business Term Loan (04/21) Loan  3M USD LIBOR+ 3.75%  0.75%  4.50% 10/18/2027  2,985,000  2,885,411  2,962,135 
AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense Term Loan B (USD) Loan  6M USD LIBOR+ 3.50%  1.00%  4.50% 1/18/2027  1,469,671  1,464,591  1,460,485 
AIS HoldCo, LLC Services: Business Term Loan Loan  3M USD LIBOR+ 5.00%  0.00%  5.30% 8/15/2025  4,789,642  4,670,148  4,705,823 
Alchemy Copyrights, LLC Media: Diversified & Production Term Loan B Loan  1M USD LIBOR+ 3.00%  0.50%  3.50% 3/10/2028  493,763  490,886  489,442 
Alchemy US Holdco 1, LLC Metals & Mining Term Loan Loan  1M USD LIBOR+ 5.50%  0.00%  5.60% 10/10/2025  1,654,803  1,640,863  1,644,874 
AlixPartners, LLP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan  1M USD LIBOR+ 2.75%  0.50%  3.25% 2/4/2028  248,125  247,608  245,217 
Alkermes, Inc. Healthcare & Pharmaceuticals Term Loan B (3/21) Loan  3M USD LIBOR+ 2.50%  0.50%  3.00% 3/12/2026  2,147,859  2,130,749  2,110,271 
Allen Media, LLC Media: Diversified & Production Term Loan (7/21) Loan  3M USD LIBOR+ 5.50%  0.00%  5.72% 2/10/2027  4,439,454  4,407,744  4,412,639 
Alliant Holdings I, Inc. Banking, Finance, Insurance & Real Estate Term Loan B4 Loan  1M USD LIBOR+ 3.50%  0.50%  4.00% 11/5/2027  997,500  996,393  987,944 
Allied Universal Holdco LLC Services: Business Term Loan 4/21 Loan  3M USD LIBOR+ 3.75%  0.50%  4.25% 5/12/2028  1,995,000  1,985,516  1,966,412 
Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate Term Loan B (03/18) Loan  3M USD LIBOR+ 4.00%  1.00%  5.00% 4/3/2024  1,223,297  1,220,031  1,102,497 
Altium Packaging LLC Containers, Packaging & Glass Term Loan (01/21) Loan  1M USD LIBOR+ 2.75%  0.50%  3.25% 1/29/2028  496,250  494,097  485,084 
American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan Loan  1M USD LIBOR+ 4.50%  1.00%  5.50% 4/6/2024  3,012,861  3,011,323  3,011,355 
American Trailer World Corp Automotive Term Loan Loan  1M USD LIBOR+ 3.75%  0.75%  4.50% 3/3/2028  1,990,000  1,984,442  1,954,558 
AmeriLife Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+ 4.00%  0.00%  4.11% 3/18/2027  1,976,415  1,967,087  1,956,651 
AmWINS Group, LLC Banking, Finance, Insurance & Real Estate Term Loan 2/21 Loan  1M USD LIBOR+ 2.25%  0.75%  3.00% 2/17/2028  1,980,006  1,957,163  1,946,900 
Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan  3M USD LIBOR+ 3.75%  0.00%  3.97% 8/11/2025  967,500  964,919  832,253 
Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan  3M USD LIBOR+ 2.75%  1.00%  3.75% 12/7/2023  475,113  474,420  406,882 

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 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B-1 (11/21) Loan 1M USD SOFR+  4.50%  0.50%  5.00% 8/9/2026  3,474,709   3,452,852   3,457,336 
Cole Haan Consumer goods: Non-durable Term Loan B Loan 3M USD LIBOR+  5.50%  0.00%  6.01% 2/7/2025  925,000   919,273   811,688 
Columbus McKinnon Corporation Capital Equipment Term Loan (4/21) Loan 3M USD LIBOR+  2.75%  0.50%  3.25% 5/14/2028  487,192   486,099   482,929 
Compass Power Generation, LLC Utilities: Electric Term Loan B (08/18) Loan 1M USD LIBOR+  3.50%  1.00%  4.50% 12/20/2024  1,707,152   1,704,898   1,686,120 
Conduent, Inc. Services: Business Term Loan B Loan 1M USD LIBOR+  4.25%  0.50%  4.75% 10/16/2028  1,000,000   990,409   990,310 
Connect Finco SARL Telecommunications Term Loan (1/21) Loan 1M USD LIBOR+  3.50%  1.00%  4.50% 12/11/2026  2,947,500   2,823,770   2,906,972 
Consolidated Communications, Inc. Telecommunications Term Loan B Loan 1M USD LIBOR+  3.50%  0.75%  4.25% 10/2/2027  714,005   705,262   704,187 
CORAL-US CO-BORROWER LLC Telecommunications Term Loan B-5 Loan 1M USD LIBOR+  2.25%  0.00%  2.44% 1/31/2028  4,000,000   3,986,739   3,914,280 
CoreCivic, Inc. Banking, Finance, Insurance & Real Estate Term Loan (12/19) Loan 1M USD LIBOR+  4.50%  1.00%  5.50% 12/18/2024  1,872,727   1,852,319   1,857,127 
Corelogic, Inc. Services: Business Term Loan (4/21) Loan 1M USD LIBOR+  3.50%  0.50%  4.00% 6/2/2028  2,493,750   2,482,238   2,459,461 
Cortes NP Acquisition Corp (Vertiv) Capital Equipment Term Loan 2/21 Loan 1M USD LIBOR+  2.75%  0.00%  2.86% 3/2/2027  1,980,000   1,980,000   1,913,175 
COWEN INC. Banking, Finance, Insurance & Real Estate Term Loan Loan 6M USD LIBOR+  3.25%  0.00%  4.00% 3/24/2028  3,967,481   3,944,804   3,898,050 
CROCS INC Consumer goods: Durable Term Loan Loan 3M USD SOFR+  3.50%  0.50%  4.03% 1/26/2029  1,000,000   995,000   987,500 
Cross Financial Corp Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan 6M USD LIBOR+  4.00%  0.75%  4.81% 9/15/2027  497,500   497,013   495,634 
Crown Subsea Communications Holding, Inc. Construction & Building Term Loan (4/21) Loan 1M USD LIBOR+  4.75%  0.75%  5.50% 4/27/2027  2,404,110   2,382,506   2,402,114 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B (03/17) Loan 1M USD LIBOR+  2.25%  0.00%  2.44% 7/15/2025  1,934,010   1,919,923   1,873,263 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+  2.25%  0.00%  2.44% 1/15/2026  485,000   484,359   469,946 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan 1M USD LIBOR+  2.50%  0.00%  2.69% 4/15/2027  490,000   490,000   475,035 
CTS Midco, LLC High Tech Industries Term Loan B Loan 3M USD LIBOR+  6.00%  1.00%  7.00% 11/2/2027  1,980,000   1,929,799   1,952,775 
Daseke Inc Transportation: Cargo Term Loan 2/21 Loan 1M USD LIBOR+  4.00%  0.75%  4.75% 3/5/2028  1,488,750   1,482,131   1,473,863 
DCert Buyer, Inc. High Tech Industries Term Loan Loan 1M USD LIBOR+  4.00%  0.00%  4.21% 10/16/2026  1,484,887   1,484,887   1,477,046 
Dealer Tire, LLC Automotive Term Loan B-1 Loan 1M USD LIBOR+  4.25%  0.00%  4.46% 12/12/2025  2,940,000   2,935,370   2,926,211 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B Loan 1M USD LIBOR+  2.25%  0.00%  2.46% 3/31/2025  6,315,361   6,274,862   6,148,699 
DexKo Global, Inc. (Dragon Merger) Automotive Term Loan (9/21) Loan 3M USD LIBOR+  3.75%  0.50%  4.25% 10/4/2028  840,000   836,119   828,450 
DexKo Global, Inc. (Dragon Merger) (a) Automotive Delayed Draw Term Loan (9/21) Loan 3M USD LIBOR+  3.75%  0.50%  4.25% 10/4/2028  130,905   134,906   132,706 
Diamond Sports Group, LLC (b) Media: Broadcasting & Subscription Term Loan Loan Prime+  2.25%  0.00%  5.50% 8/24/2026  3,408,970   2,964,398   1,264,728 
DIRECTV FINANCING, LLC Media: Broadcasting & Subscription Term Loan Loan 3M USD LIBOR+  5.00%  0.75%  5.75% 8/2/2027  3,910,000   3,874,543   3,896,823 
Dispatch Acquisition Holdings, LLC Environmental Industries Term Loan B (3/21) Loan 3M USD LIBOR+  4.25%  0.75%  5.00% 3/25/2028  497,500   493,121   493,769 
DOMTAR CORPORATION Forest Products & Paper Term Loan 9/21 Loan 1M USD LIBOR+  5.50%  0.75%  6.25% 11/30/2028  840,645   832,557   837,140 
DRI HOLDING INC. Media: Advertising, Printing & Publishing Term Loan (12/21) Loan 1M USD LIBOR+  5.25%  0.50%  5.75% 12/15/2028  3,000,000   2,970,701   2,944,500 


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 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan (2/21) Loan 1M USD LIBOR+  3.75%  0.00%  3.96% 3/1/2028  6,500,000   6,454,552   6,467,500 
DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan 1M USD LIBOR+  2.75%  0.00%  2.96% 8/21/2025  3,876,012   3,865,362   3,838,880 
EAB Global, Inc. Services: Business Term Loan (08/21) Loan 6M USD LIBOR+  3.50%  0.50%  4.00% 8/16/2028  1,000,000   995,320   989,250 
Echo Global Logistics, Inc. Services: Business Term Loan Loan 1M USD LIBOR+  3.75%  0.50%  4.25% 11/23/2028  2,000,000   1,995,444   1,978,500 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan 1M USD LIBOR+  3.50%  0.75%  4.25% 4/7/2028  2,210,766   2,203,181   2,190,603 
Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan 1M USD LIBOR+  4.25%  0.00%  4.46% 6/26/2025  1,903,934   1,903,934   1,874,575 
ELECTRON BIDCO INC. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+  3.25%  0.50%  3.75% 11/1/2028  500,000   497,610   494,455 
ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan 1M USD LIBOR+  6.50%  0.00%  6.71% 12/14/2025  2,341,935   2,266,272   2,334,137 
Embecta Corp Healthcare & Pharmaceuticals Term Loan B Loan 3M USD SOFR+  3.00%  0.50%  3.50% 1/26/2029  750,000   746,250   742,688 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan (3/21) Loan 3M USD LIBOR+  5.00%  0.75%  5.75% 3/27/2028  2,347,110   2,338,792   2,264,421 
Endure Digital, Inc. High Tech Industries Term Loan B Loan 6M USD LIBOR+  3.50%  0.75%  4.25% 2/10/2028  2,487,500   2,476,721   2,394,219 
Enterprise Merger Sub Inc. Healthcare & Pharmaceuticals Term Loan B (06/18) Loan 1M USD LIBOR+  3.75%  0.00%  3.96% 10/10/2025  4,850,000   4,844,205   3,516,638 
Equiniti Group PLC Services: Business Term Loan B Loan 3M USD LIBOR+  4.50%  0.50%  5.00% 12/11/2028  500,000   495,392   497,085 
EyeCare Partners, LLC Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  3.75%  0.00%  3.97% 2/18/2027  1,967,959   1,967,595   1,945,820 
Finco I LLC Banking, Finance, Insurance & Real Estate Term Loan B (9/20) Loan 1M USD LIBOR+  2.50%  0.00%  2.71% 6/27/2025  3,793,978   3,787,136   3,743,708 
First Brands Group, LLC Automotive 1st Lien Term Loan (3/21) Loan 3M USD LIBOR+  5.00%  1.00%  6.00% 3/30/2027  4,962,500   4,891,260   4,925,281 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan 3M USD LIBOR+  2.50%  0.00%  2.72% 2/1/2027  5,200,639   5,184,839   5,109,628 
First Student Bidco Inc. Transportation: Consumer Term Loan B Loan 3M USD LIBOR+  3.00%  0.50%  3.50% 7/21/2028  730,392   725,495   719,663 
First Student Bidco Inc. Transportation: Consumer Term Loan C Loan 3M USD LIBOR+  3.00%  0.50%  3.50% 7/21/2028  269,608   267,800   265,647 
Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan 3M USD LIBOR+  3.25%  1.00%  4.25% 4/18/2025  1,330,058   1,325,610   1,235,292 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Term Loan (1/20) Loan 1M USD LIBOR+  2.00%  0.00%  2.21% 7/3/2024  494,872   494,493   488,122 
Franchise Group, Inc. Services: Consumer First Out Term Loan Loan 3M USD LIBOR+  4.75%  0.75%  5.50% 3/10/2026  815,445   808,696   813,406 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  2.25%  0.00%  2.50% 8/1/2025  4,353,736   4,335,125   4,310,199 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan 1M USD LIBOR+  2.25%  0.00%  2.46% 1/29/2027  1,970,000   1,966,736   1,927,428 
Garrett LX III S.a r.l. Automotive Dollar Term Loan Loan 3M USD LIBOR+  3.25%  0.50%  3.75% 4/28/2028  1,496,250   1,489,649   1,470,066 
Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan 3M USD LIBOR+  3.00%  0.50%  3.50% 12/31/2027  2,392,656   2,376,261   2,370,715 
General Nutrition Centers, Inc. (d) Retail Second Lien Term Loan Loan 1M USD LIBOR+  6.00%  0.00%  6.11% 10/7/2026  376,605   376,605   351,342 
Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan 3M USD LIBOR+  2.00%  0.00%  2.22% 12/30/2026  1,473,750   1,468,685   1,451,305 
GEO Group, Inc., The Banking, Finance, Insurance & Real Estate Term Loan Refinance Loan 1M USD LIBOR+  2.00%  0.75%  2.75% 3/22/2024  3,922,786   3,717,418   3,615,828 
GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  2.50%  0.00%  2.71% 8/27/2025  3,775,280   3,197,869   3,684,031 
Gigamon Inc. Services: Business Term Loan B Loan 6M USD LIBOR+  3.50%  0.75%  4.25% 12/27/2024  2,900,607   2,887,935   2,889,730 
Global Business Travel (GBT) III Inc. Hotel, Gaming & Leisure Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  2.71% 8/13/2025  4,353,750   4,353,165   4,065,314 


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 
Global Tel*Link Corporation Telecommunications Term Loan B Loan 1M USD LIBOR+  4.25%  0.00%  4.46% 11/29/2025  4,938,649   4,748,435   4,788,959 
Go Daddy Operating Company, LLC High Tech Industries Term Loan 2/21 Loan 1M USD LIBOR+  2.00%  0.00%  2.21% 8/10/2027  1,979,899   1,979,899   1,948,657 
Go Wireless Holdings, Inc. Telecommunications Term Loan Loan 1M USD LIBOR+  6.50%  1.00%  7.50% 12/22/2024  2,846,753   2,824,354   2,828,961 
GOLDEN WEST PACKAGING GROUP LLC Forest Products & Paper Term Loan (11/21) Loan 1M USD LIBOR+  5.25%  0.75%  6.00% 11/23/2027  2,000,000   1,980,672   1,980,000 
Graham Packaging Co Inc Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD LIBOR+  3.00%  0.75%  3.75% 8/7/2027  972,314   966,607   961,647 
Great Outdoors Group, LLC Retail Term Loan B2 Loan 3M USD LIBOR+  3.75%  0.75%  4.50% 3/6/2028  990,019   985,574   984,079 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+  3.25%  0.00%  3.46% 4/12/2024  2,844,231   2,829,223   2,826,454 
Griffon Corporation Consumer goods: Durable Term Loan B Loan 3M USD SOFR+  2.75%  0.50%  3.27% 1/24/2029  250,000   249,378   248,063 
Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Amendment 5 Term Loan Loan 1M USD LIBOR+  2.50%  0.50%  3.00% 2/24/2028  3,870,741   3,867,368   3,845,581 
Harbor Freight Tools USA, Inc. Retail Term Loan B (06/21) Loan 1M USD LIBOR+  2.75%  0.50%  3.25% 10/19/2027  3,473,618   3,452,200   3,414,393 
Harland Clarke Holdings Corp. Media: Advertising, Printing & Publishing Term Loan (08/21) Loan 3M USD LIBOR+  7.75%  1.00%  8.75% 6/16/2026  1,262,555   1,260,655   1,121,149 
Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan 1M USD LIBOR+  3.75%  1.00%  4.75% 6/3/2024  226,716   226,626   218,895 
Hillman Group Inc. (The) (New) Consumer goods: Durable Term Loan B-1 (2/21) Loan 1M USD LIBOR+  2.75%  0.50%  3.25% 7/14/2028  3,514,399   3,506,291   3,471,101 
Hillman Group Inc. (The) (New) (a) Consumer goods: Durable Delayed Draw Term Loan (2/21) Loan 1M USD LIBOR+  2.75%  0.50%  3.25% 7/14/2028  67,342   67,342   56,947 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan 1M USD LIBOR+  2.50%  0.00%  2.71% 8/18/2025  3,550,000   3,541,488   3,505,625 
Holley Purchaser, Inc Automotive Term Loan (11/21) Loan 3M USD LIBOR+  3.75%  0.75%  4.50% 11/17/2028  2,137,500   2,127,187   2,117,899 
Holley Purchaser, Inc (a) Automotive Delayed Draw Term Loan Loan 3M USD LIBOR+  3.75%  0.75%  4.50% 11/17/2028  106,875   106,875   103,602 
Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 1M USD LIBOR+  3.25%  0.75%  4.00% 11/12/2027  2,174,152   2,164,312   2,148,192 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan (3/21) Loan 1M USD SOFR+  3.00%  0.00%  3.30% 3/17/2028  5,955,000   5,902,173   5,843,344 
Idera, Inc. High Tech Industries Term Loan (02/21) Loan 6M USD LIBOR+  3.75%  0.75%  4.50% 3/2/2028  4,860,079   4,848,914   4,811,478 
IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/21) Loan 1M USD LIBOR+  3.75%  0.50%  4.25% 11/1/2028  2,000,000   1,990,546   1,973,760 
INDY US BIDCO, LLC Services: Business Term Loan (11/21) Loan 1M USD LIBOR+  3.75%  0.00%  3.96% 3/6/2028  2,238,141   2,237,925   2,221,355 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber Term Loan (1/21) Loan 1M USD LIBOR+  2.75%  0.50%  3.25% 1/29/2026  995,000   991,113   983,189 
Informatica Inc. High Tech Industries Term Loan B (10/21) Loan 1M USD LIBOR+  2.75%  0.00%  3.00% 10/27/2028  500,000   499,441   493,440 
Ingram Micro Inc. High Tech Industries Term Loan Loan 3M USD LIBOR+  3.50%  0.50%  4.00% 6/30/2028  1,492,500   1,478,709   1,483,172 
Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan 3M USD LIBOR+  4.00%  1.00%  5.00% 5/1/2024  3,386,129   3,343,519   3,356,501 
Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan 1M USD LIBOR+  3.75%  0.00%  3.96% 2/4/2027  491,250   489,509   487,973 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable Term Loan 4/21 Loan 3M USD LIBOR+  5.00%  0.75%  5.75% 4/7/2028  4,368,033   4,346,269   4,018,591 
INSTRUCTURE HOLDINGS, INC. High Tech Industries Term Loan B Loan 3M USD LIBOR+  2.75%  0.50%  3.27% 10/21/2028  500,000   498,797   492,500 
Isagenix International, LLC Beverage, Food & Tobacco Term Loan Loan 3M USD LIBOR+  5.75%  1.00%  6.75% 6/14/2025  2,427,552   2,401,608   1,775,900 
Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+  3.50%  0.00%  3.67% 3/14/2025  2,949,539   2,931,462   2,870,285 
J Jill Group, Inc Retail Priming Term Loan Loan 3M USD LIBOR+  5.00%  1.00%  6.00% 5/8/2024  1,574,907   1,573,650   1,409,542 


 

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 
Jane Street Group Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 1M USD LIBOR+  2.75%  0.00%  2.96% 1/31/2028  3,960,000   3,954,873   3,906,778 
Journey Personal Care Corp. Consumer goods: Non-durable Term Loan B Loan 3M USD LIBOR+  4.25%  0.75%  5.00% 3/1/2028  995,000   990,570   945,250 
JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+  5.50%  1.00%  6.50% 11/15/2025  4,154,019   4,125,538   3,620,933 
KAR Auction Services, Inc. Automotive Term Loan B (09/19) Loan 1M USD LIBOR+  2.25%  0.00%  2.50% 9/19/2026  244,375   243,989   241,931 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Term Loan (1/21) (USD) Loan 6M USD LIBOR+  4.75%  0.50%  5.55% 2/12/2026  1,488,750   1,482,629   1,391,981 
Kodiak BP, LLC Construction & Building Term Loan Loan 3M USD LIBOR+  3.25%  0.75%  4.00% 3/13/2028  496,250   494,732   489,054 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan 3M USD LIBOR+  3.50%  0.50%  4.00% 9/1/2027  496,250   486,145   491,288 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Priority Exit PIK Term Loan (9/20) Loan 3M USD LIBOR+  6.00%  1.25%  7.25% 9/25/2023  299,904   288,132   300,054 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure 2nd Out Take Back PIK Term Loan Loan 3M USD LIBOR+  1.50%  1.25%  2.75% 9/25/2025  616,465   528,040   592,115 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Third Out PIK Term Loan Loan 3M USD LIBOR+  1.50%  1.25%  2.75% 9/25/2025  818,373   540,076   720,987 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan Fixed  0.00%  0.00%  13.25% 9/27/2027  869,977   228,303   594,847 
Lealand Finance Company B.V. (d) Energy: Oil & Gas Exit Term Loan Loan 1M USD LIBOR+  1.00%  0.00%  1.21% 6/30/2025  334,753   334,753   155,422 
Learfield Communications, Inc Media: Advertising, Printing & Publishing Initial Term Loan (A-L Parent) Loan 1M USD LIBOR+  3.25%  1.00%  4.25% 12/1/2023  475,000   474,352   449,616 
Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan 1M USD LIBOR+  3.50%  1.00%  4.50% 2/28/2025  2,694,077   2,673,038   2,667,136 
Lightstone Generation LLC Energy: Electricity Term Loan B Loan 3M USD LIBOR+  3.75%  1.00%  4.75% 1/30/2024  1,322,520   1,321,594   1,099,212 
Lightstone Generation LLC Energy: Electricity Term Loan C Loan 3M USD LIBOR+  3.75%  1.00%  4.75% 1/30/2024  74,592   74,542   61,997 
Liquid Tech Solutions Holdings, LLC Services: Business Term Loan Loan 12M USD LIBOR+  4.75%  0.00%  5.50% 3/17/2028  995,000   991,612   991,269 
LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan 1M USD LIBOR+  4.75%  0.00%  4.89% 8/31/2027  3,960,000   3,897,792   3,888,482 
LOYALTY VENTURES INC. Services: Business Term Loan B Loan 1M USD LIBOR+  4.50%  0.50%  5.00% 11/3/2027  3,340,141   3,320,925   3,294,214 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan 1M USD LIBOR+  1.75%  0.00%  1.86% 11/11/2026  1,220,308   1,218,289   1,200,857 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD SOFR+  3.75%  0.50%  4.25% 10/16/2028  250,000   248,837   246,875 
MA FinanceCo LLC High Tech Industries Term Loan B4 Loan 3M USD LIBOR+  4.25%  1.00%  5.25% 6/5/2025  2,234,660   2,228,836   2,208,582 
MAGNITE, INC. Services: Business Term Loan Loan 6M USD LIBOR+  5.00%  0.75%  5.75% 4/28/2028  1,990,000   1,935,905   1,980,050 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan 1M USD LIBOR+  1.75%  0.00%  1.96% 8/29/2025  1,317,074   1,317,074   1,290,403 
Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan 3M USD LIBOR+  1.75%  0.00%  2.22% 2/15/2027  250,000   249,562   244,895 
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  4.50%  0.00%  4.71% 2/28/2025  3,392,071   3,369,794   3,375,823 
McAfee, LLC Services: Business Term Loan B Loan Prime+  2.75%  0.00%  6.00% 9/30/2024  1,642,423   1,638,322   1,638,054 
McGraw-Hill Education, Inc. Media: Advertising, Printing & Publishing Term Loan (07/21) Loan 3M USD LIBOR+  4.75%  0.50%  5.26% 7/28/2028  1,995,000   1,976,108   1,975,050 
MedAssets Software Inter Hldg, Inc. High Tech Industries Term Loan (11/21) (USD) Loan 3M USD LIBOR+  4.00%  0.50%  4.50% 11/17/2028  500,000   492,500   496,250 
Mermaid Bidco Inc. High Tech Industries Term Loan B2 Loan 3M USD LIBOR+  3.75%  0.75%  4.50% 12/22/2027  993,756   990,577   976,366 
Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan 3M USD LIBOR+  2.50%  0.00%  2.72% 3/1/2026  3,381,477   3,366,633   3,341,677 
Michaels Companies Inc Retail Term Loan B (Magic Mergeco) Loan 3M USD LIBOR+  4.25%  0.75%  5.00% 4/8/2028  2,492,500   2,474,302   2,312,492 
Milk Specialties Company Beverage, Food & Tobacco Term Loan (6/21) Loan 3M USD LIBOR+  4.00%  1.00%  5.00% 8/15/2025  3,801,560   3,774,075   3,782,552 
MJH Healthcare Holdings, LLC Healthcare & Pharmaceuticals Term Loan B (01/22) Loan 1M USD SOFR+  3.50%  0.50%  4.00% 1/28/2029  250,000   248,782   247,500 
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 
Anchor Packaging, LLC Containers, Packaging & Glass Term Loan B Loan  1M USD LIBOR+ 4.00%  0.00%  4.21% 7/18/2026  987,342  979,469  972,532 
ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  1M USD LIBOR+ 6.00%  0.75%  6.75% 11/19/2027  3,000,000  2,943,100  3,000,000 
AP Core Holdings II LLC High Tech Industries Term Loan B1 Loan  1M USD LIBOR+ 5.50%  0.75%  6.25% 9/1/2027  1,975,000  1,947,406  1,965,125 
AP Core Holdings II LLC High Tech Industries Term Loan B2 Loan  1M USD LIBOR+ 5.50%  0.75%  6.25% 9/1/2027  500,000  493,024  498,125 
APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan  1M USD LIBOR+ 2.50%  0.00%  2.71% 10/1/2026  1,950,000  1,942,029  1,927,575 
APLP Holdings Limited Partnership Energy: Electricity Term Loan B (3/21) Loan  1M USD LIBOR+ 3.75%  1.00%  4.75% 5/14/2027  828,378  821,051  826,655 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+ 2.75%  0.00%  2.86% 5/15/2026  2,969,543  2,937,176  2,887,881 
Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 (2/21) Loan  1M USD LIBOR+ 3.50%  0.50%  4.00% 3/6/2028  992,500  983,643  982,575 
AppLovin Corporation High Tech Industries Term Loan B Loan  1M USD LIBOR+ 3.25%  0.00%  3.46% 8/15/2025  989,796  989,796  982,066 
AppLovin Corporation High Tech Industries Term Loan (10/21) Loan  1M USD LIBOR+ 3.00%  0.50%  3.50% 10/21/2028  1,496,250  1,492,669  1,481,288 
Aramark Corporation Services: Consumer Term Loan Loan  1M USD LIBOR+ 1.75%  0.00%  1.96% 1/15/2027  2,331,250  2,268,549  2,279,776 
Aramark Corporation Services: Consumer Term Loan B (4/21) Loan  1M USD LIBOR+ 2.50%  0.00%  2.71% 4/1/2028  1,753,715  1,746,008  1,743,491 
ARC FALCON I INC. Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+ 3.75%  0.50%  4.25% 9/23/2028  872,611  868,610  855,526 
ARC FALCON I INC. (a) Chemicals, Plastics, & Rubber Delayed Draw Term Loan Loan  N/A  N/A    N/A    N/A  9/22/2028  -  (601) (2,494)
Arches Buyer Inc. Services: Consumer Term Loan B Loan  1M USD LIBOR+ 3.25%  0.50%  3.75% 12/6/2027  1,500,000  1,490,625  1,473,570 
Arctic Glacier U.S.A., Inc. Beverage, Food & Tobacco Term Loan (3/18) Loan  3M USD LIBOR+ 3.50%  1.00%  4.50% 3/20/2024  3,350,967  3,341,474  3,103,833 
Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan  1M USD LIBOR+ 4.25%  0.00%  4.46% 10/1/2025  2,436,164  2,430,830  2,425,518 
ASP BLADE HOLDINGS, INC. Capital Equipment Term Loan Loan  1M USD LIBOR+ 4.00%  0.50%  4.50% 10/7/2028  100,000  99,530  99,542 
Asplundh Tree Expert, LLC Services: Business Term Loan 2/21 Loan  1M USD LIBOR+ 1.75%  0.00%  1.96% 9/7/2027  987,500  983,579  973,458 
AssuredPartners Capital, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (2/20) Loan  1M USD LIBOR+ 3.50%  0.00%  3.71% 2/12/2027  1,000,000  996,250  984,580 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Incremental Term Loan (7/21) Loan  1M USD LIBOR+ 3.50%  0.50%  4.00% 2/12/2027  995,006  995,006  978,837 
Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 3.50%  0.50%  4.00% 2/12/2027  500,000  498,811  491,875 
ASTRO ONE ACQUISITION CORPORATION Consumer goods: Durable Term Loan Loan  1M USD LIBOR+ 5.50%  0.75%  6.25% 9/15/2028  3,000,000  2,971,643  2,968,140 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B6 Loan  1M USD LIBOR+ 3.13%  0.00%  3.33% 11/3/2023  266,824  266,095  264,767 
Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan  1M USD LIBOR+ 3.25%  0.00%  3.46% 12/18/2026  2,995,112  2,984,120  2,939,882 
ATHENAHEALTH GROUP INC. Healthcare & Pharmaceuticals Term Loan B (2/22) Loan  1M USD SOFR+ 3.50%  0.50%  4.00% 2/15/2029  1,282,609  1,276,322  1,269,462 
ATHENAHEALTH GROUP INC. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (02/22) Loan  N/A  N/A    N/A    N/A  2/15/2029  -  -  (2,228)
Avast Software S.R.O. (Sybil Finance) High Tech Industries Term Loan (Sybil Software) Loan  3M USD LIBOR+ 2.00%  0.00%  2.22% 3/22/2028  1,925,000  1,920,766  1,916,819 


 

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 
MKS Instruments, Inc. High Tech Industries Term Loan B6 Loan 1M USD LIBOR+  1.75%  0.00%  1.96% 2/2/2026  868,529   863,296   862,562 
MRC Global Inc. Metals & Mining Term Loan B2 Loan 1M USD LIBOR+  3.00%  0.00%  3.21% 9/20/2024  351,484   351,116   348,848 
MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental) Loan 3M USD LIBOR+  3.75%  0.00%  3.97% 9/30/2024  2,842,097   2,812,930   2,765,730 
NAB Holdings, LLC (North American Bancard) Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan 1M USD SOFR+  3.00%  0.50%  3.50% 11/17/2028  3,000,000   2,992,613   2,950,710 
Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+  3.50%  0.00%  3.75% 11/14/2025  3,472,277   3,448,686   3,411,513 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan 2/21 Loan 1M USD LIBOR+  3.75%  0.75%  4.50% 3/2/2028  2,763,891   2,753,599   2,704,771 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C 2/21 Loan 3M USD LIBOR+  3.75%  0.75%  4.50% 3/2/2028  87,464   87,078   85,593 
National Mentor Holdings, Inc. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan 2/21 Loan N/A  N/A   N/A   N/A  3/2/2028  -   -   (2,758)
Neenah, Inc. Forest Products & Paper Term Loan B (03/21) Loan 3M USD LIBOR+  3.00%  0.50%  3.50% 4/6/2028  1,990,000   1,981,133   1,960,150 
NEW ERA CAP, LLC Consumer goods: Durable Term Loan (01/22) Loan 6M USD LIBOR+  6.00%  0.75%  6.75% 7/13/2027  1,000,000   998,828   997,500 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  2.61% 9/18/2026  1,113,795   1,103,364   1,107,146 
Next Level Apparel, Inc. Retail Term Loan Loan 3M USD WIBOR+  5.50%  1.00%  6.50% 8/9/2024  1,725,340   1,717,025   1,690,834 
NM Z Parent Inc (Zep Inc) Chemicals, Plastics, & Rubber Term Loan Loan 12M USD LIBOR+  4.00%  1.00%  5.00% 8/9/2024  871,151   869,399   842,838 
NorthPole Newco S.a.r.l (b), (d) Aerospace & Defense Term Loan Loan 3M USD LIBOR+  7.00%  0.00%  7.22% 3/3/2025  5,348,887   5,028,659   1,537,805 
NortonLifeLock Inc. High Tech Industries Term Loan B Loan 3M USD SOFR+  2.00%  0.50%  2.50% 1/28/2029  1,500,000   1,492,500   1,480,620 
Novae LLC Automotive Term Loan B Loan 1M USD SOFR+  5.00%  0.75%  5.75% 12/22/2028  1,555,556   1,540,210   1,540,000 
Novae LLC (a) Automotive Delayed Draw Term Loan Loan N/A  N/A   N/A   N/A  12/22/2028  -   -   (4,444)
Novolex Holdings, Inc (Flex Acquisition) Containers, Packaging & Glass Term Loan (02/21) Loan 3M USD LIBOR+  3.50%  0.50%  4.00% 3/2/2028  987,555   983,296   983,437 
Nuvei Technologies Corp. High Tech Industries US Term Loan Loan 1M USD LIBOR+  2.50%  0.50%  3.00% 9/29/2025  2,238,750   2,234,198   2,210,766 
Olaplex, Inc. Consumer goods: Non-durable Term Loan (2/22) Loan 1M USD SOFR+  3.75%  0.50%  4.25% 2/23/2029  1,000,000   997,500   996,250 
Organon & Co. Healthcare & Pharmaceuticals Term Loan USD Loan 6M USD LIBOR+  3.00%  0.50%  3.50% 6/2/2028  2,410,417   2,399,629   2,397,617 
Pacific Gas and Electric Company Utilities: Electric Term Loan Loan 3M USD LIBOR+  3.00%  0.50%  3.50% 6/18/2025  1,479,969   1,474,197   1,449,999 
PACTIV EVERGREEN GROUP HOLDINGS INC. Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+  3.50%  0.50%  4.00% 9/20/2028  997,500   992,792   984,473 
Padagis LLC Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+  4.75%  0.50%  5.25% 7/6/2028  941,176   932,470   934,118 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Term Loan 1/21 Loan 3M USD LIBOR+  4.50%  0.50%  5.00% 1/7/2028  497,500   494,346   493,520 
Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan 1M USD LIBOR+  3.75%  0.00%  3.96% 3/30/2027  491,473   482,640   486,804 
PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan 1M USD LIBOR+  2.50%  0.00%  2.71% 5/29/2026  809,038   806,361   800,188 
PEARLS (Netherlands) Bidco B.V. Chemicals, Plastics, & Rubber USD Term Loan (02/22) Loan 3M USD SOFR+  4.00%  0.50%  4.50% 2/4/2029  1,000,000   997,500   989,580 
PECF USS INTERMEDIATE HOLDING III CORPORATION Environmental Industries Term Loan B Loan 1M USD LIBOR+  4.25%  0.50%  4.75% 12/15/2028  100,000   99,777   99,391 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC Healthcare & Pharmaceuticals Term Loan (12/22) Loan 3M USD LIBOR+  3.50%  0.00%  3.84% 12/28/2028  1,302,632   1,296,159   1,291,234 
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 
Avaya, Inc. Telecommunications Term Loan B1 Loan  1M USD LIBOR+ 4.25%  0.00%  4.44% 12/15/2027  1,755,766  1,747,367  1,739,859 
Avaya, Inc. Telecommunications Term Loan B-2 (2/21) Loan  1M USD LIBOR+ 4.00%  0.00%  4.19% 12/15/2027  1,000,000  1,000,000  988,590 
Avison Young (Canada) Inc Services: Business Term Loan Loan  3M USD LIBOR+ 5.75%  0.00%  5.97% 1/31/2026  3,405,995  3,370,219  3,371,935 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3 Loan  1M USD LIBOR+ 1.75%  0.75%  2.50% 1/15/2025  1,000,000  900,020  990,630 
Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 (7/21) Loan  1M USD LIBOR+ 2.25%  0.50%  2.75% 12/1/2027  495,000  490,860  491,466 
AZURITY PHARMACEUTICALS, INC. Healthcare & Pharmaceuticals Term Loan B Loan  3M USD LIBOR+ 6.00%  0.75%  6.75% 9/20/2027  500,000  485,751  495,000 
B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan  1M USD LIBOR+ 2.50%  0.00%  2.71% 10/10/2026  706,458  701,732  701,605 
B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan  1M USD LIBOR+ 1.75%  0.00%  1.96% 11/19/2026  1,470,000  1,438,969  1,440,968 
BAKELITE UK INTERMEDIATE LTD. Chemicals, Plastics, & Rubber Term Loan Loan  3M USD SOFR+ 4.25%  0.00%  4.75% 2/1/2029  1,000,000  995,000  992,500 
Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+ 3.50%  0.50%  4.00% 10/14/2027  1,238,775  1,225,981  1,222,522 
Belfor Holdings Inc. Services: Consumer Term Loan Loan  1M USD LIBOR+ 3.75%  0.00%  3.96% 4/6/2026  248,092 ��247,897  246,851 
Belron Finance US LLC Automotive Term Loan B (3/21) Loan  3M USD LIBOR+ 2.75%  0.50%  3.25% 4/13/2028  1,985,000  1,967,341  1,968,247 
Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Term Loan Loan  3M USD SOFR+ 3.25%  0.50%  3.75% 1/24/2029  1,890,909  1,889,030  1,873,191 
Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Delayed Draw Term Loan Loan  3M USD SOFR+ 3.25%  0.50%  3.75% 1/24/2029  109,091  109,048  108,069 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+ 2.25%  0.00%  2.46% 4/23/2026  989,873  983,805  967,601 
Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan (6/21) Loan  1M USD LIBOR+ 2.75%  0.50%  3.25% 4/23/2026  1,480,053  1,470,897  1,464,335 
Blucora, Inc. Services: Consumer Term Loan (11/17) Loan  3M USD LIBOR+ 4.00%  1.00%  5.00% 5/22/2024  2,443,339  2,437,898  2,437,230 
Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber Term Loan (2/21) Loan  3M USD LIBOR+ 2.50%  0.00%  2.72% 3/4/2028  992,500  990,307  983,200 
Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan  1M USD LIBOR+ 2.00%  0.00%  2.21% 5/24/2027  1,470,049  1,461,460  1,442,486 
Boxer Parent Company, Inc. High Tech Industries Term Loan (2/21) Loan  3M USD LIBOR+ 3.75%  0.00%  3.97% 10/2/2025  522,846  522,846  516,310 
Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+ 4.25%  0.00%  4.47% 9/5/2025  967,500  964,897  959,034 
BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Term Loan B-3 Loan  1M USD LIBOR+ 3.50%  0.00%  3.66% 3/5/2026  992,500  992,500  980,342 
BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan  1M USD LIBOR+ 3.00%  0.00%  3.21% 1/22/2027  2,979,108  2,973,591  2,930,697 
Brookfield WEC Holdings Inc. Energy: Electricity Term Loan (1/21) Loan  1M USD LIBOR+ 2.75%  0.50%  3.25% 8/1/2025  1,477,538  1,479,743  1,453,528 
Buckeye Partners, L.P. Utilities: Oil & Gas Term Loan (1/21) Loan  1M USD LIBOR+ 2.25%  0.00%  2.36% 11/1/2026  1,970,088  1,958,262  1,946,565 
BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+ 3.50%  0.50%  4.00% 3/31/2028  2,487,500  2,465,358  2,475,063 
Callaway Golf Company Retail Term Loan B Loan  1M USD LIBOR+ 4.50%  0.00%  4.71% 1/4/2026  682,500  673,958  681,005 
CareerBuilder, LLC Services: Business Term Loan Loan  3M USD LIBOR+ 6.75%  1.00%  7.75% 7/31/2023  5,393,388  5,246,921  4,159,650 
CareStream Health, Inc. Healthcare & Pharmaceuticals Term Loan Loan  6M USD LIBOR+ 6.75%  1.00%  7.75% 5/8/2023  2,184,163  2,181,757  2,184,163 
Casa Systems, Inc Telecommunications Term Loan Loan  1M USD LIBOR+ 4.00%  1.00%  5.00% 12/20/2023  1,391,125  1,387,217  1,349,391 


 

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 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (12/21) Loan N/A  N/A   N/A   N/A  12/28/2028  -   -   (1,727)
Penn National Gaming Hotel, Gaming & Leisure Term Loan B-1 Loan 1M USD LIBOR+  2.25%  0.75%  3.00% 10/15/2025  1,762,675   1,715,292   1,746,370 
Peraton Corp. Aerospace & Defense Term Loan B Loan 1M USD LIBOR+  3.75%  0.75%  4.50% 2/1/2028  5,459,994   5,439,162   5,425,869 
PHYSICIAN PARTNERS, LLC Healthcare & Pharmaceuticals Term Loan Loan 1M USD SOFR+  4.00%  0.50%  4.50% 12/23/2028  2,000,000   1,980,245   1,985,000 
Ping Identity Corporation High Tech Industries Term Loan B (11/21) Loan 6M USD SOFR+  3.75%  0.50%  4.45% 11/22/2028  1,000,000   995,074   990,000 
Pitney Bowes Inc Services: Business Term Loan B Loan 1M USD LIBOR+  4.00%  0.00%  4.21% 3/17/2028  2,977,500   2,960,793   2,944,003 
Pixelle Specialty Solutions LLC Forest Products & Paper Term Loan Loan 1M USD LIBOR+  6.50%  1.00%  7.50% 10/31/2024  3,535,026   3,515,981   3,504,837 
Plastipak Holdings Inc. Containers, Packaging & Glass Term Loan B (11/21) Loan 1M USD LIBOR+  2.50%  0.50%  3.00% 11/17/2028  2,000,000   1,990,299   1,974,380 
Playtika Holding Corp. High Tech Industries Term Loan B (3/21) Loan 1M USD LIBOR+  2.75%  0.00%  2.96% 3/13/2028  4,466,250   4,457,371   4,415,513 
PMHC II, INC. Chemicals, Plastics, & Rubber Term Loan (02/22) Loan 3M USD SOFR+  4.25%  0.50%  4.75% 2/2/2029  2,000,000   1,990,000   1,968,340 
PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan 6M USD LIBOR+  3.00%  0.75%  3.75% 12/29/2027  496,250   494,183   486,945 
Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+  4.75%  0.75%  5.50% 2/12/2028  5,458,750   5,404,639   5,333,635 
Pre-Paid Legal Services, Inc. Services: Consumer Term Loan (12/21) Loan 3M USD LIBOR+  3.75%  0.50%  4.25% 12/15/2028  3,000,000   2,975,633   2,973,000 
Presidio, Inc. Services: Business Term Loan B (1/20) Loan 1M USD LIBOR+  3.50%  0.00%  3.71% 1/22/2027  492,500   491,700   488,038 
Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan 6M USD LIBOR+  2.75%  0.75%  3.50% 9/23/2026  3,556,300   3,553,818   3,513,837 
PRIORITY HOLDINGS, LLC Services: Consumer Term Loan Loan 1M USD LIBOR+  5.75%  1.00%  6.75% 4/27/2027  2,985,000   2,957,411   2,973,806 
PriSo Acquisition Corporation Construction & Building Term Loan (01/21) Loan 3M USD LIBOR+  3.25%  0.75%  4.00% 12/28/2027  496,248   494,100   487,832 
Project Leopard Holdings Inc High Tech Industries Term Loan Loan 6M USD LIBOR+  4.75%  1.00%  5.75% 7/5/2024  495,000   494,242   492,678 
Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan 1M USD LIBOR+  3.00%  1.00%  4.00% 1/29/2025  481,388   480,315   474,017 
PUG LLC Services: Consumer Term Loan B (02/20) Loan 1M USD LIBOR+  3.50%  0.00%  3.71% 2/12/2027  485,075   483,298   475,374 
QUEST BORROWER LIMITED High Tech Industries Term Loan (1/22) Loan 3M USD SOFR+  4.25%  0.50%  4.75% 1/19/2029  2,000,000   1,980,237   1,968,760 
Rackspace Technology Global, Inc. High Tech Industries Term Loan (1/21) Loan 1M USD LIBOR+  2.75%  0.75%  3.50% 2/15/2028  496,250   494,141   480,519 
RealPage, Inc. High Tech Industries Term Loan (04/21) Loan 1M USD LIBOR+  3.25%  0.50%  3.75% 4/24/2028  997,500   995,328   985,720 
Renaissance Learning, Inc. Services: Consumer Term Loan (5/18) Loan 1M USD LIBOR+  3.25%  0.00%  3.46% 5/30/2025  2,969,141   2,946,381   2,922,496 
Rent-A-Center, Inc. Retail Term Loan B2 (9/21) Loan 1M USD LIBOR+  3.25%  0.50%  3.81% 2/17/2028  993,744   991,647   973,869 
Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan 6M USD LIBOR+  5.50%  1.00%  6.50% 12/20/2024  4,343,378   4,268,021   4,251,082 
Resideo Funding Inc. Services: Consumer Term Loan (1/21) Loan 1M USD LIBOR+  2.25%  0.50%  2.75% 2/11/2028  1,488,750   1,486,251   1,481,306 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 3M USD LIBOR+  4.25%  1.00%  5.25% 4/30/2024  3,084,702   3,078,180   3,067,366 
Restoration Hardware, Inc. Retail Term Loan (9/21) Loan 3M USD LIBOR+  2.50%  0.50%  3.00% 10/20/2028  3,497,500   3,489,704   3,456,509 
Reynolds Consumer Products LLC Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  1.96% 1/29/2027  1,291,932   1,290,988   1,271,829 
Reynolds Group Holdings Inc. Metals & Mining Term Loan B2 Loan 1M USD LIBOR+  3.25%  0.00%  3.46% 2/5/2026  3,465,000   3,449,546   3,406,545 
Robertshaw US Holding Corp. Consumer goods: Durable Term Loan B Loan 6M USD LIBOR+  3.50%  1.00%  4.50% 2/28/2025  962,500   961,492   877,800 
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 
Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan  3M USD LIBOR+ 3.75%  0.00%  3.97% 1/27/2027  1,980,130  1,968,915  1,934,864 
CBI BUYER, INC. Consumer goods: Durable Term Loan Loan  3M USD LIBOR+ 3.25%  0.50%  3.75% 1/6/2028  995,000  992,948  963,906 
CCC Intelligent Solutions Inc. Services: Business Term Loan B Loan  3M USD LIBOR+ 2.50%  0.50%  3.00% 9/16/2028  250,000  249,432  246,875 
CCI Buyer, Inc Telecommunications Term Loan Loan  3M USD LIBOR+ 3.75%  0.75%  4.50% 12/17/2027  248,125  246,017  245,257 
CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B Loan  3M USD LIBOR+ 3.75%  0.75%  4.50% 3/5/2028  992,500  988,070  986,297 
CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+ 5.50%  0.00%  5.71% 9/25/2025  2,425,000  2,412,003  2,371,456 
Cengage Learning, Inc. Media: Advertising, Printing & Publishing Term Loan B (6/21) Loan  6M USD LIBOR+ 4.75%  1.00%  5.75% 7/14/2026  2,992,500  2,966,179  2,985,019 
CENTURI GROUP, INC. Construction & Building Term Loan B Loan  1M USD LIBOR+ 2.50%  0.50%  3.00% 8/27/2028  931,998  923,210  923,647 
CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan  1M USD LIBOR+ 2.25%  0.00%  2.46% 3/15/2027  3,929,899  3,924,411  3,823,045 
Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+ 1.75%  0.00%  1.96% 4/3/2025  915,661  880,331  896,780 
Churchill Downs Incorporated Hotel, Gaming & Leisure Term Loan B1 (3/21) Loan  1M USD LIBOR+ 2.00%  0.00%  2.21% 3/17/2028  496,250  495,147  489,427 
CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing USD Term Loan Loan  1M USD LIBOR+ 3.50%  0.50%  4.00% 5/17/2028  995,000  986,097  987,538 
CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan  1M USD SOFR+ 2.50%  0.00%  2.69% 2/2/2028  4,962,500  4,957,863  4,911,089 
Clarios Global LP Automotive Term Loan B1 Loan  1M USD LIBOR+ 3.25%  0.00%  3.46% 4/30/2026  1,267,812  1,259,559  1,253,549 
Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B-1 (11/21) Loan  1M USD SOFR+ 4.50%  0.50%  5.00% 8/9/2026  3,474,709  3,452,852  3,457,336 
Cole Haan Consumer goods: Non-durable Term Loan B Loan  3M USD LIBOR+ 5.50%  0.00%  6.01% 2/7/2025  925,000  919,273  811,688 
Columbus McKinnon Corporation Capital Equipment Term Loan (4/21) Loan  3M USD LIBOR+ 2.75%  0.50%  3.25% 5/14/2028  487,192  486,099  482,929 
Compass Power Generation, LLC Utilities: Electric Term Loan B (08/18) Loan  1M USD LIBOR+ 3.50%  1.00%  4.50% 12/20/2024  1,707,152  1,704,898  1,686,120 
Conduent, Inc. Services: Business Term Loan B Loan  1M USD LIBOR+ 4.25%  0.50%  4.75% 10/16/2028  1,000,000  990,409  990,310 
Connect Finco SARL Telecommunications Term Loan (1/21) Loan  1M USD LIBOR+ 3.50%  1.00%  4.50% 12/11/2026  2,947,500  2,823,770  2,906,972 
Consolidated Communications, Inc. Telecommunications Term Loan B Loan  1M USD LIBOR+ 3.50%  0.75%  4.25% 10/2/2027  714,005  705,262  704,187 
CORAL-US CO-BORROWER LLC Telecommunications Term Loan B-5 Loan  1M USD LIBOR+ 2.25%  0.00%  2.44% 1/31/2028  4,000,000  3,986,739  3,914,280 
CoreCivic, Inc. Banking, Finance, Insurance & Real Estate Term Loan (12/19) Loan  1M USD LIBOR+ 4.50%  1.00%  5.50% 12/18/2024  1,872,727  1,852,319  1,857,127 
Corelogic, Inc. Services: Business Term Loan (4/21) Loan  1M USD LIBOR+ 3.50%  0.50%  4.00% 6/2/2028  2,493,750  2,482,238  2,459,461 
Cortes NP Acquisition Corp (Vertiv) Capital Equipment Term Loan 2/21 Loan  1M USD LIBOR+ 2.75%  0.00%  2.86% 3/2/2027  1,980,000  1,980,000  1,913,175 
COWEN INC. Banking, Finance, Insurance & Real Estate Term Loan Loan  6M USD LIBOR+ 3.25%  0.00%  4.00% 3/24/2028  3,967,481  3,944,804  3,898,050 
CROCS INC Consumer goods: Durable Term Loan Loan  3M USD SOFR+ 3.50%  0.50%  4.03% 1/26/2029  1,000,000  995,000  987,500 
Cross Financial Corp Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  6M USD LIBOR+ 4.00%  0.75%  4.81% 9/15/2027  497,500  497,013  495,634 


 

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 
Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan 1M USD LIBOR+  4.25%  0.00%  4.46% 11/28/2025  2,905,190   2,897,593   2,876,138 
Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 6M USD LIBOR+  3.50%  1.00%  4.50% 6/2/2025  5,637,965   5,601,072   5,592,185 
RV Retailer LLC Automotive Term Loan Loan 3M USD SOFR+  3.75%  0.75%  4.50% 2/8/2028  1,985,000   1,967,852   1,951,513 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  3.00%  0.75%  3.75% 9/1/2027  493,750   487,862   489,583 
S&S HOLDINGS LLC Services: Business Term Loan Loan 3M USD LIBOR+  5.00%  0.50%  5.50% 3/10/2028  2,483,744   2,427,454   2,458,906 
Sally Holdings LLC Retail Term Loan B Loan 1M USD LIBOR+  2.25%  0.00%  2.46% 7/5/2024  748,409   746,932   740,925 
Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan 1M USD LIBOR+  3.00%  0.75%  3.75% 4/25/2025  987,538   967,436   979,519 
Schweitzer-Mauduit International, Inc. High Tech Industries Term Loan B Loan 1M USD LIBOR+  3.75%  0.75%  4.50% 4/20/2028  2,985,000   2,969,212   2,895,450 
Scientific Games Holdings LP Hotel, Gaming & Leisure Term Loan B Loan 3M USD SOFR+  3.50%  0.50%  4.00% 2/3/2029  500,000   498,750   496,460 
SETANTA AIRCRAFT LEASING DAC Aerospace & Defense Term Loan Loan 3M USD LIBOR+  2.00%  0.00%  2.14% 11/2/2028  1,000,000   997,653   993,440 
Signify Health, LLC Healthcare & Pharmaceuticals Term Loan B (6/21) Loan 3M USD LIBOR+  3.25%  0.50%  3.75% 6/16/2028  498,750   496,482   492,206 
Sitel Worldwide Corporation Services: Business USD Term Loan (7/21) Loan 3M USD LIBOR+  3.75%  0.50%  4.25% 8/28/2028  1,995,000   1,985,688   1,981,294 
SiteOne Landscape Supply, LLC Services: Business Term Loan (3/21) Loan 3M USD LIBOR+  2.00%  0.50%  2.50% 3/18/2028  785,769   784,048   780,528 
SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan 3M USD LIBOR+  2.50%  0.00%  2.80% 1/23/2025  490,000   490,000   472,238 
Sotheby’s Services: Business Term Loan (7/21) Loan 3M USD LIBOR+  4.50%  0.50%  5.00% 1/15/2027  3,256,472   3,207,096   3,240,190 
Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber Term Loan (04/21) Loan 1M USD LIBOR+  3.50%  0.75%  4.25% 8/2/2028  2,000,000   1,990,687   1,985,000 
Specialty Pharma III Inc. Services: Business Term Loan Loan 1M USD LIBOR+  4.50%  0.75%  5.25% 3/31/2028  1,995,000   1,977,135   1,975,050 
Spectrum Brands, Inc. Consumer goods: Durable Term Loan (2/21) Loan 3M USD LIBOR+  2.00%  0.50%  2.50% 3/3/2028  496,250   495,145   494,389 
Spin Holdco, Inc. Services: Consumer Term Loan 3/21 Loan 3M USD LIBOR+  4.00%  0.75%  4.75% 3/4/2028  2,977,500   2,962,439   2,958,474 
SRAM, LLC Consumer goods: Durable Term Loan (05/21) Loan 1M USD LIBOR+  2.75%  0.50%  3.26% 5/12/2028  3,600,000   3,594,517   3,571,488 
SS&C Technologies, Inc. Services: Business Term Loan B3 Loan 1M USD LIBOR+  1.75%  0.00%  1.96% 4/16/2025  190,170   189,956   186,819 
SS&C Technologies, Inc. Services: Business Term Loan B4 Loan 1M USD LIBOR+  1.75%  0.00%  1.96% 4/16/2025  154,375   154,203   151,655 
SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan 1M USD LIBOR+  1.75%  0.00%  1.96% 4/16/2025  477,615   477,001   469,376 
STANDARD INDUSTRIES INC. Construction & Building Term Loan B Loan 3M USD LIBOR+  2.50%  0.50%  3.00% 9/22/2028  640,250   634,225   637,503 
Staples, Inc. Wholesale Term Loan (03/19) Loan 3M USD LIBOR+  5.00%  0.00%  5.13% 4/16/2026  4,386,462   4,265,782   4,154,813 
Stars Group Inc. (The) Hotel, Gaming & Leisure Term Loan Loan 3M USD LIBOR+  2.25%  0.00%  2.47% 7/21/2026  1,995,000   1,990,864   1,972,776 
Storable, Inc High Tech Industries Term Loan B Loan 6M USD LIBOR+  3.25%  0.50%  3.75% 4/17/2028  500,000   498,861   494,375 
Superannuation & Investments US LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  3.75%  0.50%  4.25% 12/1/2028  1,000,000   990,274   995,940 
Sylvamo Corporation Forest Products & Paper Term Loan Loan 1M USD LIBOR+  4.50%  0.50%  5.00% 8/18/2028  1,093,333   1,082,992   1,085,133 
Syncsort Incorporated High Tech Industries Term Loan B (10/21) Loan 3M USD LIBOR+  4.00%  0.75%  4.75% 4/24/2028  2,495,000   2,493,770   2,465,684 
Syniverse Holdings, Inc. Telecommunications Term Loan Loan 3M USD SOFR+  4.25%  0.50%  4.75% 2/1/2029  500,000   495,000   499,375 
Tenable Holdings, Inc. Services: Business Term Loan B (6/21) Loan 6M USD LIBOR+  2.75%  0.50%  3.27% 7/7/2028  1,000,000   997,633   986,250 
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+  5.25%  1.00%  6.25% 7/15/2025  4,428,522   4,355,261   4,383,129 
Tenneco Inc Capital Equipment Term Loan B Loan 1M USD LIBOR+  3.00%  0.00%  3.21% 10/1/2025  1,455,000   1,447,215   1,444,088 
Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  4.00%  1.00%  5.00% 9/27/2024  1,920,000   1,918,652   1,881,600 
The Dun & Bradstreet Corporation Services: Business Term Loan Loan 1M USD LIBOR+  3.25%  0.00%  3.46% 2/6/2026  1,000,000   998,750   988,330 
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 
Crown Subsea Communications Holding, Inc. Construction & Building Term Loan (4/21) Loan  1M USD LIBOR+ 4.75%  0.75%  5.50% 4/27/2027  2,404,110  2,382,506  2,402,114 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B (03/17) Loan  1M USD LIBOR+ 2.25%  0.00%  2.44% 7/15/2025  1,934,010  1,919,923  1,873,263 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B Loan  1M USD LIBOR+ 2.25%  0.00%  2.44% 1/15/2026  485,000  484,359  469,946 
CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan  1M USD LIBOR+ 2.50%  0.00%  2.69% 4/15/2027  490,000  490,000  475,035 
CTS Midco, LLC High Tech Industries Term Loan B Loan  3M USD LIBOR+ 6.00%  1.00%  7.00% 11/2/2027  1,980,000  1,929,799  1,952,775 
Daseke Inc Transportation: Cargo Term Loan 2/21 Loan  1M USD LIBOR+ 4.00%  0.75%  4.75% 3/5/2028  1,488,750  1,482,131  1,473,863 
DCert Buyer, Inc. High Tech Industries Term Loan Loan  1M USD LIBOR+ 4.00%  0.00%  4.21% 10/16/2026  1,484,887  1,484,887  1,477,046 
Dealer Tire, LLC Automotive Term Loan B-1 Loan  1M USD LIBOR+ 4.25%  0.00%  4.46% 12/12/2025  2,940,000  2,935,370  2,926,211 
Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B Loan  1M USD LIBOR+ 2.25%  0.00%  2.46% 3/31/2025  6,315,361  6,274,862  6,148,699 
DexKo Global, Inc. (Dragon Merger) Automotive Term Loan (9/21) Loan  3M USD LIBOR+ 3.75%  0.50%  4.25% 10/4/2028  840,000  836,119  828,450 
DexKo Global, Inc. (Dragon Merger) (a) Automotive Delayed Draw Term Loan (9/21) Loan  3M USD LIBOR+ 3.75%  0.50%  4.25% 10/4/2028  130,905  134,906  132,706 
Diamond Sports Group, LLC (b) Media: Broadcasting & Subscription Term Loan Loan  Prime+ 2.25%  0.00%  5.50% 8/24/2026  3,408,970  2,964,398  1,264,728 
DIRECTV FINANCING, LLC Media: Broadcasting & Subscription Term Loan Loan  3M USD LIBOR+ 5.00%  0.75%  5.75% 8/2/2027  3,910,000  3,874,543  3,896,823 
Dispatch Acquisition Holdings, LLC Environmental Industries Term Loan B (3/21) Loan  3M USD LIBOR+ 4.25%  0.75%  5.00% 3/25/2028  497,500  493,121  493,769 
DOMTAR CORPORATION Forest Products & Paper Term Loan 9/21 Loan  1M USD LIBOR+ 5.50%  0.75%  6.25% 11/30/2028  840,645  832,557  837,140 
DRI HOLDING INC. Media: Advertising, Printing & Publishing Term Loan (12/21) Loan  1M USD LIBOR+ 5.25%  0.50%  5.75% 12/15/2028  3,000,000  2,970,701  2,944,500 
DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan (2/21) Loan  1M USD LIBOR+ 3.75%  0.00%  3.96% 3/1/2028  6,500,000  6,454,552  6,467,500 
DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan  1M USD LIBOR+ 2.75%  0.00%  2.96% 8/21/2025  3,876,012  3,865,362  3,838,880 
EAB Global, Inc. Services: Business Term Loan (08/21) Loan  6M USD LIBOR+ 3.50%  0.50%  4.00% 8/16/2028  1,000,000  995,320  989,250 
Echo Global Logistics, Inc. Services: Business Term Loan Loan  1M USD LIBOR+ 3.75%  0.50%  4.25% 11/23/2028  2,000,000  1,995,444  1,978,500 
Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan  1M USD LIBOR+ 3.50%  0.75%  4.25% 4/7/2028  2,210,766  2,203,181  2,190,603 
Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan  1M USD LIBOR+ 4.25%  0.00%  4.46% 6/26/2025  1,903,934  1,903,934  1,874,575 
ELECTRON BIDCO INC. Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+ 3.25%  0.50%  3.75% 11/1/2028  500,000  497,610  494,455 
ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan  1M USD LIBOR+ 6.50%  0.00%  6.71% 12/14/2025  2,341,935  2,266,272  2,334,137 
Embecta Corp Healthcare & Pharmaceuticals Term Loan B Loan  3M USD SOFR+ 3.00%  0.50%  3.50% 1/26/2029  750,000  746,250  742,688 
Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan (3/21) Loan  3M USD LIBOR+ 5.00%  0.75%  5.75% 3/27/2028  2,347,110  2,338,792  2,264,421 
Endure Digital, Inc. High Tech Industries Term Loan B Loan  6M USD LIBOR+ 3.50%  0.75%  4.25% 2/10/2028  2,487,500  2,476,721  2,394,219 
Enterprise Merger Sub Inc. Healthcare & Pharmaceuticals Term Loan B (06/18) Loan  1M USD LIBOR+ 3.75%  0.00%  3.96% 10/10/2025  4,850,000  4,844,205  3,516,638 
Equiniti Group PLC Services: Business Term Loan B Loan  3M USD LIBOR+ 4.50%  0.50%  5.00% 12/11/2028  500,000  495,392  497,085 
EyeCare Partners, LLC Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+ 3.75%  0.00%  3.97% 2/18/2027  1,967,959  1,967,595  1,945,820 


 

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 
The Dun & Bradstreet Corporation Services: Business Term Loan B Loan 1M USD SOFR+  3.25%  0.00%  3.44% 1/5/2029  250,000   248,180   246,668 
THE KNOT WORLDWIDE INC. Services: Consumer Term Loan (1/22) Loan 1M USD SOFR+  4.50%  0.00%  4.67% 12/19/2025  4,869,796   4,863,346   4,829,231 
The Octave Music Group, Inc (Touchtunes) Services: Business Term Loan B Loan 1M USD LIBOR+  6.00%  1.00%  7.00% 5/29/2025  2,893,526   2,872,208   2,871,824 
Thor Industries, Inc. Automotive USD Term Loan (3/21) Loan 1M USD LIBOR+  3.00%  0.00%  3.25% 2/1/2026  2,810,435   2,763,310   2,797,563 
Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD LIBOR+  3.50%  0.75%  4.25% 8/18/2027  495,000   489,079   487,575 
Trans Union LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+  2.00%  0.50%  2.50% 12/1/2028  870,968   868,877   860,804 
Transdigm, Inc. Aerospace & Defense Term Loan G (02/20) Loan 1M USD LIBOR+  2.25%  0.00%  2.46% 8/22/2024  4,024,167��  4,026,414   3,959,700 
Travel Leaders Group, LLC Hotel, Gaming & Leisure Term Loan B (08/18) Loan 1M USD LIBOR+  4.00%  0.00%  4.21% 1/25/2024  2,412,500   2,411,191   2,268,353 
TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco Term Loan (03/21) Loan 3M USD LIBOR+  3.50%  0.50%  4.00% 3/31/2028  1,492,500   1,485,884   1,454,352 
Tronox Pigments (Netherlands) B.V. Chemicals, Plastics, & Rubber Term Loan Loan 3M USD LIBOR+  2.25%  0.00%  2.47% 3/10/2028  346,923   346,183   341,719 
TruGreen Limited Partnership Services: Consumer Term Loan Loan 1M USD LIBOR+  4.00%  0.75%  4.75% 10/29/2027  964,241   957,748   961,830 
Uber Technologies, Inc. Transportation: Consumer Term Loan B (2/21) Loan 1M USD LIBOR+  3.50%  0.00%  3.71% 2/25/2027  3,947,943   3,909,627   3,905,740 
Ultra Clean Holdings, Inc. High Tech Industries Incremental Term Loan 3/21 Loan 1M USD LIBOR+  3.75%  0.00%  3.96% 8/27/2025  884,205   880,505   882,366 
Unimin Corporation Metals & Mining Term Loan (12/20) Loan 3M USD LIBOR+  4.00%  1.00%  5.00% 7/31/2026  496,815   471,432   490,853 
United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+  3.25%  0.00%  3.46% 10/22/2025  1,624,974   1,562,482   1,616,166 
United Road Services Inc. Transportation: Cargo Term Loan (10/17) Loan 6M USD LIBOR+  5.75%  1.00%  6.75% 9/1/2024  920,843   915,490   826,457 
Univar Inc. Chemicals, Plastics, & Rubber Term Loan B6 Loan 1M USD LIBOR+  2.00%�� 0.00%  2.21% 6/2/2028  1,990,000   1,980,782   1,974,458 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/21) Loan 1M USD LIBOR+  3.25%  0.75%  4.00% 3/15/2026  2,471,487   2,464,765   2,451,913 
US Ecology, Inc. Environmental Industries Term Loan B Loan 1M USD LIBOR+  2.50%  0.00%  2.71% 11/2/2026  490,000   489,302   488,040 
Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+  3.00%  0.00%  3.21% 1/20/2028  1,847,121   1,844,606   1,827,264 
Vaco Holdings, LLC Services: Business Term Loan (01/22) Loan 1M USD SOFR+  5.00%  0.75%  5.75% 1/19/2029  250,000   248,777   248,124 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan 3M USD LIBOR+  4.00%  0.00%  4.50% 8/20/2025  1,382,319   1,377,042   1,354,672 
Vertex Aerospace Services Corp Aerospace & Defense Term Loan (10/21) Loan 1M USD LIBOR+  4.00%  0.75%  4.75% 12/6/2028  1,000,000   995,345   992,080 
VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan (01/22) Loan Daily SOFR+  3.00%  0.50%  3.50% 1/12/2029  3,100,888   3,092,414   3,071,833 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (9/21) Loan 1M USD LIBOR+  2.25%  0.00%  2.36% 9/28/2028  2,992,500   2,982,995   2,971,942 
Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan 1M USD LIBOR+  1.75%  0.00%  1.87% 12/31/2025  907,176   906,677   890,075 
Vizient, Inc Healthcare & Pharmaceuticals Term Loan B-6 Loan 1M USD LIBOR+  2.00%  0.00%  2.21% 5/6/2026  486,250   485,567   480,779 
VM Consolidated, Inc. Construction & Building Term Loan B (3/21) Loan 6M USD LIBOR+  3.25%  0.00%  3.60% 3/19/2028  2,339,327   2,336,223   2,322,951 
Vouvray US Finance LLC High Tech Industries Term Loan Loan 1M USD LIBOR+  3.00%  1.00%  4.00% 3/11/2024  476,250   476,250   411,837 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G Loan 1M USD LIBOR+  2.13%  0.00%  2.33% 1/20/2028  1,250,000   1,249,760   1,234,763 
Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries Term Loan (3/18) Loan 1M USD LIBOR+  3.75%  1.00%  4.75% 3/15/2025  489,822   488,550   469,004 
Watlow Electric Manufacturing Company High Tech Industries Term Loan B Loan 3M USD LIBOR+  3.75%  0.50%  4.25% 3/2/2028  2,481,250   2,470,270   2,452,294 
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 
Finco I LLC Banking, Finance, Insurance & Real Estate Term Loan B (9/20) Loan  1M USD LIBOR+ 2.50%  0.00%  2.71% 6/27/2025  3,793,978  3,787,136  3,743,708 
First Brands Group, LLC Automotive 1st Lien Term Loan (3/21) Loan  3M USD LIBOR+ 5.00%  1.00%  6.00% 3/30/2027  4,962,500  4,891,260  4,925,281 
First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan  3M USD LIBOR+ 2.50%  0.00%  2.72% 2/1/2027  5,200,639  5,184,839  5,109,628 
First Student Bidco Inc. Transportation: Consumer Term Loan B Loan  3M USD LIBOR+ 3.00%  0.50%  3.50% 7/21/2028  730,392  725,495  719,663 
First Student Bidco Inc. Transportation: Consumer Term Loan C Loan  3M USD LIBOR+ 3.00%  0.50%  3.50% 7/21/2028  269,608  267,800  265,647 
Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan  3M USD LIBOR+ 3.25%  1.00%  4.25% 4/18/2025  1,330,058  1,325,610  1,235,292 
FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Term Loan (1/20) Loan  1M USD LIBOR+ 2.00%  0.00%  2.21% 7/3/2024  494,872  494,493  488,122 
Franchise Group, Inc. Services: Consumer First Out Term Loan Loan  3M USD LIBOR+ 4.75%  0.75%  5.50% 3/10/2026  815,445  808,696  813,406 
Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+ 2.25%  0.00%  2.50% 8/1/2025  4,353,736  4,335,125  4,310,199 
Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan  1M USD LIBOR+ 2.25%  0.00%  2.46% 1/29/2027  1,970,000  1,966,736  1,927,428 
Garrett LX III S.a r.l. Automotive Dollar Term Loan Loan  3M USD LIBOR+ 3.25%  0.50%  3.75% 4/28/2028  1,496,250  1,489,649  1,470,066 
Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan  3M USD LIBOR+ 3.00%  0.50%  3.50% 12/31/2027  2,392,656  2,376,261  2,370,715 
General Nutrition Centers, Inc. (d) Retail Second Lien Term Loan Loan  1M USD LIBOR+ 6.00%  0.00%  6.11% 10/7/2026  376,605  376,605  351,342 
Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan  3M USD LIBOR+ 2.00%  0.00%  2.22% 12/30/2026  1,473,750  1,468,685  1,451,305 
GEO Group, Inc., The Banking, Finance, Insurance & Real Estate Term Loan Refinance Loan  1M USD LIBOR+ 2.00%  0.75%  2.75% 3/22/2024  3,922,786  3,717,418  3,615,828 
GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+ 2.50%  0.00%  2.71% 8/27/2025  3,775,280  3,197,869  3,684,031 
Gigamon Inc. Services: Business Term Loan B Loan  6M USD LIBOR+ 3.50%  0.75%  4.25% 12/27/2024  2,900,607  2,887,935  2,889,730 
Global Business Travel (GBT) III Inc. Hotel, Gaming & Leisure Term Loan Loan  1M USD LIBOR+ 2.50%  0.00%  2.71% 8/13/2025  4,353,750  4,353,165  4,065,314 
Global Tel*Link Corporation Telecommunications Term Loan B Loan  1M USD LIBOR+ 4.25%  0.00%  4.46% 11/29/2025  4,938,649  4,748,435  4,788,959 
Go Daddy Operating Company, LLC High Tech Industries Term Loan 2/21 Loan  1M USD LIBOR+ 2.00%  0.00%  2.21% 8/10/2027  1,979,899  1,979,899  1,948,657 
Go Wireless Holdings, Inc. Telecommunications Term Loan Loan  1M USD LIBOR+ 6.50%  1.00%  7.50% 12/22/2024  2,846,753  2,824,354  2,828,961 
GOLDEN WEST PACKAGING GROUP LLC Forest Products & Paper Term Loan (11/21) Loan  1M USD LIBOR+ 5.25%  0.75%  6.00% 11/23/2027  2,000,000  1,980,672  1,980,000 
Graham Packaging Co Inc Containers, Packaging & Glass Term Loan (2/21) Loan  1M USD LIBOR+ 3.00%  0.75%  3.75% 8/7/2027  972,314  966,607  961,647 
Great Outdoors Group, LLC Retail Term Loan B2 Loan  3M USD LIBOR+ 3.75%  0.75%  4.50% 3/6/2028  990,019  985,574  984,079 
Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan  1M USD LIBOR+ 3.25%  0.00%  3.46% 4/12/2024  2,844,231  2,829,223  2,826,454 
Griffon Corporation Consumer goods: Durable Term Loan B Loan  3M USD SOFR+ 2.75%  0.50%  3.27% 1/24/2029  250,000  249,378  248,063 
Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Amendment 5 Term Loan Loan  1M USD LIBOR+ 2.50%  0.50%  3.00% 2/24/2028  3,870,741  3,867,368  3,845,581 


 

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 
West Corporation Telecommunications Term Loan B (Olympus Merger) Loan 3M USD LIBOR+  4.00%  1.00%  5.00% 10/10/2024  1,086,078   1,047,433   967,424 
West Corporation Telecommunications Term Loan B Loan 3M USD LIBOR+  3.50%  1.00%  4.50% 10/10/2024  2,599,274   2,562,059   2,301,449 
WEX Inc. Services: Business Term Loan B (3/21) Loan 1M USD LIBOR+  2.25%  0.00%  2.46% 3/31/2028  2,985,000   2,974,005   2,937,419 
WildBrain Ltd. Media: Diversified & Production Term Loan Loan 1M USD LIBOR+  4.25%  0.75%  5.00% 3/27/2028  1,985,000   1,949,907   1,966,401 
WP CITYMD BIDCO LLC Services: Consumer Term Loan B Loan 6M USD LIBOR+  3.25%  0.50%  3.75% 12/22/2028  7,424,013   7,399,065   7,355,340 
Xperi Corporation High Tech Industries Term Loan Loan 1M USD LIBOR+  3.50%  0.00%  3.71% 6/8/2028  2,741,617   2,730,066   2,719,355 
ZEBRA BUYER LLC Banking, Finance, Insurance & Real Estate Term Loan 4/21 Loan 3M USD LIBOR+  3.25%  0.50%  3.75% 11/1/2028  887,097   883,013   882,661 
Zekelman Industries, Inc. Metals & Mining Term Loan (01/20) Loan 1M USD LIBOR+  2.00%  0.00%  2.14% 1/25/2027  968,914   968,914   954,622 
Zodiac Pool Solutions Consumer goods: Durable Term Loan (1/22) Loan 1M USD SOFR+  2.00%  0.50%  2.50% 1/19/2029  500,000   498,783   493,440 
                                   
                            $653,022,265  $638,963,350 
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 
Harbor Freight Tools USA, Inc. Retail Term Loan B (06/21) Loan  1M USD LIBOR+ 2.75%  0.50%  3.25% 10/19/2027  3,473,618  3,452,200  3,414,393 
Harland Clarke Holdings Corp. Media: Advertising, Printing & Publishing Term Loan (08/21) Loan  3M USD LIBOR+ 7.75%  1.00%  8.75% 6/16/2026  1,262,555  1,260,655  1,121,149 
Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan  1M USD LIBOR+ 3.75%  1.00%  4.75% 6/3/2024  226,716  226,626  218,895 
Hillman Group Inc. (The) (New) Consumer goods: Durable Term Loan B-1 (2/21) Loan  1M USD LIBOR+ 2.75%  0.50%  3.25% 7/14/2028  3,514,399  3,506,291  3,471,101 
Hillman Group Inc. (The) (New) (a) Consumer goods: Durable Delayed Draw Term Loan (2/21) Loan  1M USD LIBOR+ 2.75%  0.50%  3.25% 7/14/2028  67,342  67,342  56,947 
HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan  1M USD LIBOR+ 2.50%  0.00%  2.71% 8/18/2025  3,550,000  3,541,488  3,505,625 
Holley Purchaser, Inc Automotive Term Loan (11/21) Loan  3M USD LIBOR+ 3.75%  0.75%  4.50% 11/17/2028  2,137,500  2,127,187  2,117,899 
Holley Purchaser, Inc (a) Automotive Delayed Draw Term Loan Loan  3M USD LIBOR+ 3.75%  0.75%  4.50% 11/17/2028  106,875  106,875  103,602 
Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan  1M USD LIBOR+ 3.25%  0.75%  4.00% 11/12/2027  2,174,152  2,164,312  2,148,192 
Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan (3/21) Loan  1M USD SOFR+ 3.00%  0.00%  3.30% 3/17/2028  5,955,000  5,902,173  5,843,344 
Idera, Inc. High Tech Industries Term Loan (02/21) Loan  6M USD LIBOR+ 3.75%  0.75%  4.50% 3/2/2028  4,860,079  4,848,914  4,811,478 
IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/21) Loan  1M USD LIBOR+ 3.75%  0.50%  4.25% 11/1/2028  2,000,000  1,990,546  1,973,760 
INDY US BIDCO, LLC Services: Business Term Loan (11/21) Loan  1M USD LIBOR+ 3.75%  0.00%  3.96% 3/6/2028  2,238,141  2,237,925  2,221,355 
INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber Term Loan (1/21) Loan  1M USD LIBOR+ 2.75%  0.50%  3.25% 1/29/2026  995,000  991,113  983,189 
Informatica Inc. High Tech Industries Term Loan B (10/21) Loan  1M USD LIBOR+ 2.75%  0.00%  3.00% 10/27/2028  500,000  499,441  493,440 
Ingram Micro Inc. High Tech Industries Term Loan Loan  3M USD LIBOR+ 3.50%  0.50%  4.00% 6/30/2028  1,492,500  1,478,709  1,483,172 
Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan  3M USD LIBOR+ 4.00%  1.00%  5.00% 5/1/2024  3,386,129  3,343,519  3,356,501 
Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan  1M USD LIBOR+ 3.75%  0.00%  3.96% 2/4/2027  491,250  489,509  487,973 
INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable Term Loan 4/21 Loan  3M USD LIBOR+ 5.00%  0.75%  5.75% 4/7/2028  4,368,033  4,346,269  4,018,591 
INSTRUCTURE HOLDINGS, INC. High Tech Industries Term Loan B Loan  3M USD LIBOR+ 2.75%  0.50%  3.27% 10/21/2028  500,000  498,797  492,500 
Isagenix International, LLC Beverage, Food & Tobacco Term Loan Loan  3M USD LIBOR+ 5.75%  1.00%  6.75% 6/14/2025  2,427,552  2,401,608  1,775,900 
Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals Term Loan Loan  1M USD LIBOR+ 3.50%  0.00%  3.67% 3/14/2025  2,949,539  2,931,462  2,870,285 
J Jill Group, Inc Retail Priming Term Loan Loan  3M USD LIBOR+ 5.00%  1.00%  6.00% 5/8/2024  1,574,907  1,573,650  1,409,542 
Jane Street Group Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan  1M USD LIBOR+ 2.75%  0.00%  2.96% 1/31/2028  3,960,000  3,954,873  3,906,778 
Journey Personal Care Corp. Consumer goods: Non-durable Term Loan B Loan  3M USD LIBOR+ 4.25%  0.75%  5.00% 3/1/2028  995,000  990,570  945,250 
JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan  3M USD LIBOR+ 5.50%  1.00%  6.50% 11/15/2025  4,154,019  4,125,538  3,620,933 


 

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 
KAR Auction Services, Inc. Automotive Term Loan B (09/19) Loan  1M USD LIBOR+ 2.25%  0.00%  2.50% 9/19/2026  244,375  243,989  241,931 
Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Term Loan (1/21) (USD) Loan  6M USD LIBOR+ 4.75%  0.50%  5.55% 2/12/2026  1,488,750  1,482,629  1,391,981 
Kodiak BP, LLC Construction & Building Term Loan Loan  3M USD LIBOR+ 3.25%  0.75%  4.00% 3/13/2028  496,250  494,732  489,054 
KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan  3M USD LIBOR+ 3.50%  0.50%  4.00% 9/1/2027  496,250  486,145  491,288 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Priority Exit PIK Term Loan (9/20) Loan  3M USD LIBOR+ 6.00%  1.25%  7.25% 9/25/2023  299,904  288,132  300,054 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure 2nd Out Take Back PIK Term Loan Loan  3M USD LIBOR+ 1.50%  1.25%  2.75% 9/25/2025  616,465  528,040  592,115 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Third Out PIK Term Loan Loan  3M USD LIBOR+ 1.50%  1.25%  2.75% 9/25/2025  818,373  540,076  720,987 
Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan  Fixed 0.00%  0.00%  13.25% 9/27/2027  869,977  228,303  594,847 
Lealand Finance Company B.V. (d) Energy: Oil & Gas Exit Term Loan Loan  1M USD LIBOR+ 1.00%  0.00%  1.21% 6/30/2025  334,753  334,753  155,422 
Learfield Communications, Inc Media: Advertising, Printing & Publishing Initial Term Loan (A-L Parent) Loan  1M USD LIBOR+ 3.25%  1.00%  4.25% 12/1/2023  475,000  474,352  449,616 
Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan  1M USD LIBOR+ 3.50%  1.00%  4.50% 2/28/2025  2,694,077  2,673,038  2,667,136 
Lightstone Generation LLC Energy: Electricity Term Loan B Loan  3M USD LIBOR+ 3.75%  1.00%  4.75% 1/30/2024  1,322,520  1,321,594  1,099,212 
Lightstone Generation LLC Energy: Electricity Term Loan C Loan  3M USD LIBOR+ 3.75%  1.00%  4.75% 1/30/2024  74,592  74,542  61,997 
Liquid Tech Solutions Holdings, LLC Services: Business Term Loan Loan  12M USD LIBOR+ 4.75%  0.00%  5.50% 3/17/2028  995,000  991,612  991,269 
LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan  1M USD LIBOR+ 4.75%  0.00%  4.89% 8/31/2027  3,960,000  3,897,792  3,888,482 
LOYALTY VENTURES INC. Services: Business Term Loan B Loan  1M USD LIBOR+ 4.50%  0.50%  5.00% 11/3/2027  3,340,141  3,320,925  3,294,214 
LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan  1M USD LIBOR+ 1.75%  0.00%  1.86% 11/11/2026  1,220,308  1,218,289  1,200,857 
LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD SOFR+ 3.75%  0.50%  4.25% 10/16/2028  250,000  248,837  246,875 
MA FinanceCo LLC High Tech Industries Term Loan B4 Loan  3M USD LIBOR+ 4.25%  1.00%  5.25% 6/5/2025  2,234,660  2,228,836  2,208,582 
MAGNITE, INC. Services: Business Term Loan Loan  6M USD LIBOR+ 5.00%  0.75%  5.75% 4/28/2028  1,990,000  1,935,905  1,980,050 
Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan  1M USD LIBOR+ 1.75%  0.00%  1.96% 8/29/2025  1,317,074  1,317,074  1,290,403 
Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan  3M USD LIBOR+ 1.75%  0.00%  2.22% 2/15/2027  250,000  249,562  244,895 
Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+ 4.50%  0.00%  4.71% 2/28/2025  3,392,071  3,369,794  3,375,823 
McAfee, LLC Services: Business Term Loan B Loan  Prime+ 2.75%  0.00%  6.00% 9/30/2024  1,642,423  1,638,322  1,638,054 
McGraw-Hill Education, Inc. Media: Advertising, Printing & Publishing Term Loan (07/21) Loan  3M USD LIBOR+ 4.75%  0.50%  5.26% 7/28/2028  1,995,000  1,976,108  1,975,050 
MedAssets Software Inter Hldg, Inc. High Tech Industries Term Loan (11/21) (USD) Loan  3M USD LIBOR+ 4.00%  0.50%  4.50% 11/17/2028  500,000  492,500  496,250 
Mermaid Bidco Inc. High Tech Industries Term Loan B2 Loan  3M USD LIBOR+ 3.75%  0.75%  4.50% 12/22/2027  993,756  990,577  976,366 
Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan  3M USD LIBOR+ 2.50%  0.00%  2.72% 3/1/2026  3,381,477  3,366,633  3,341,677 
Michaels Companies Inc Retail Term Loan B (Magic Mergeco) Loan  3M USD LIBOR+ 4.25%  0.75%  5.00% 4/8/2028  2,492,500  2,474,302  2,312,492 
Milk Specialties Company Beverage, Food & Tobacco Term Loan (6/21) Loan  3M USD LIBOR+ 4.00%  1.00%  5.00% 8/15/2025  3,801,560  3,774,075  3,782,552 
MJH Healthcare Holdings, LLC Healthcare & Pharmaceuticals Term Loan B (01/22) Loan  1M USD SOFR+ 3.50%  0.50%  4.00% 1/28/2029  250,000  248,782  247,500 


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 
MKS Instruments, Inc. High Tech Industries Term Loan B6 Loan  1M USD LIBOR+ 1.75%  0.00%  1.96% 2/2/2026  868,529  863,296  862,562 
MRC Global Inc. Metals & Mining Term Loan B2 Loan  1M USD LIBOR+ 3.00%  0.00%  3.21% 9/20/2024  351,484  351,116  348,848 
MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental) Loan  3M USD LIBOR+ 3.75%  0.00%  3.97% 9/30/2024  2,842,097  2,812,930  2,765,730 
NAB Holdings, LLC (North American Bancard) Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan  1M USD SOFR+ 3.00%  0.50%  3.50% 11/17/2028  3,000,000  2,992,613  2,950,710 
Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan  1M USD LIBOR+ 3.50%  0.00%  3.75% 11/14/2025  3,472,277  3,448,686  3,411,513 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan 2/21 Loan  1M USD LIBOR+ 3.75%  0.75%  4.50% 3/2/2028  2,763,891  2,753,599  2,704,771 
National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C 2/21 Loan  3M USD LIBOR+ 3.75%  0.75%  4.50% 3/2/2028  87,464  87,078  85,593 
National Mentor Holdings, Inc. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan 2/21 Loan  N/A  N/A    N/A    N/A  3/2/2028  -  -  (2,758)
Neenah, Inc. Forest Products & Paper Term Loan B (03/21) Loan  3M USD LIBOR+ 3.00%  0.50%  3.50% 4/6/2028  1,990,000  1,981,133  1,960,150 
NEW ERA CAP, LLC Consumer goods: Durable Term Loan (01/22) Loan  6M USD LIBOR+ 6.00%  0.75%  6.75% 7/13/2027  1,000,000  998,828  997,500 
Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Term Loan Loan  1M USD LIBOR+ 2.50%  0.00%  2.61% 9/18/2026  1,113,795  1,103,364  1,107,146 
Next Level Apparel, Inc. Retail Term Loan Loan  3M USD WIBOR+ 5.50%  1.00%  6.50% 8/9/2024  1,725,340  1,717,025  1,690,834 
NM Z Parent Inc (Zep Inc) Chemicals, Plastics, & Rubber Term Loan Loan  12M USD LIBOR+ 4.00%  1.00%  5.00% 8/9/2024  871,151  869,399  842,838 
NorthPole Newco S.a.r.l (b), (d) Aerospace & Defense Term Loan Loan  3M USD LIBOR+ 7.00%  0.00%  7.22% 3/3/2025  5,348,887  5,028,659  1,537,805 
NortonLifeLock Inc. High Tech Industries Term Loan B Loan  3M USD SOFR+ 2.00%  0.50%  2.50% 1/28/2029  1,500,000  1,492,500  1,480,620 
Novae LLC Automotive Term Loan B Loan  1M USD SOFR+ 5.00%  0.75%  5.75% 12/22/2028  1,555,556  1,540,210  1,540,000 
Novae LLC (a) Automotive Delayed Draw Term Loan Loan  N/A  N/A    N/A    N/A  12/22/2028  -  -  (4,444)
Novolex Holdings, Inc (Flex Acquisition) Containers, Packaging & Glass Term Loan (02/21) Loan  3M USD LIBOR+ 3.50%  0.50%  4.00% 3/2/2028  987,555  983,296  983,437 
Nuvei Technologies Corp. High Tech Industries US Term Loan Loan  1M USD LIBOR+ 2.50%  0.50%  3.00% 9/29/2025  2,238,750  2,234,198  2,210,766 
Olaplex, Inc. Consumer goods: Non-durable Term Loan (2/22) Loan  1M USD SOFR+ 3.75%  0.50%  4.25% 2/23/2029  1,000,000  997,500  996,250 
Organon & Co. Healthcare & Pharmaceuticals Term Loan USD Loan  6M USD LIBOR+ 3.00%  0.50%  3.50% 6/2/2028  2,410,417  2,399,629  2,397,617 
Pacific Gas and Electric Company Utilities: Electric Term Loan Loan  3M USD LIBOR+ 3.00%  0.50%  3.50% 6/18/2025  1,479,969  1,474,197  1,449,999 
PACTIV EVERGREEN GROUP HOLDINGS INC. Containers, Packaging & Glass Term Loan B Loan  1M USD LIBOR+ 3.50%  0.50%  4.00% 9/20/2028  997,500  992,792  984,473 
Padagis LLC Healthcare & Pharmaceuticals Term Loan Loan  3M USD LIBOR+ 4.75%  0.50%  5.25% 7/6/2028  941,176  932,470  934,118 
Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Term Loan 1/21 Loan  3M USD LIBOR+ 4.50%  0.50%  5.00% 1/7/2028  497,500  494,346  493,520 
Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan  1M USD LIBOR+ 3.75%  0.00%  3.96% 3/30/2027  491,473  482,640  486,804 
PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan  1M USD LIBOR+ 2.50%  0.00%  2.71% 5/29/2026  809,038  806,361  800,188 
PEARLS (Netherlands) Bidco B.V. Chemicals, Plastics, & Rubber USD Term Loan (02/22) Loan  3M USD SOFR+ 4.00%  0.50%  4.50% 2/4/2029  1,000,000  997,500  989,580 
PECF USS INTERMEDIATE HOLDING III CORPORATION Environmental Industries Term Loan B Loan  1M USD LIBOR+ 4.25%  0.50%  4.75% 12/15/2028  100,000  99,777  99,391 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC Healthcare & Pharmaceuticals Term Loan (12/22) Loan  3M USD LIBOR+ 3.50%  0.00%  3.84% 12/28/2028  1,302,632  1,296,159  1,291,234 
PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (12/21) Loan  N/A  N/A    N/A    N/A  12/28/2028  -  -  (1,727)
Penn National Gaming Hotel, Gaming & Leisure Term Loan B-1 Loan  1M USD LIBOR+ 2.25%  0.75%  3.00% 10/15/2025  1,762,675  1,715,292  1,746,370 


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 
Peraton Corp. Aerospace & Defense Term Loan B Loan  1M USD LIBOR+ 3.75%  0.75%  4.50% 2/1/2028  5,459,994  5,439,162  5,425,869 
PHYSICIAN PARTNERS, LLC Healthcare & Pharmaceuticals Term Loan Loan  1M USD SOFR+ 4.00%  0.50%  4.50% 12/23/2028  2,000,000  1,980,245  1,985,000 
Ping Identity Corporation High Tech Industries Term Loan B (11/21) Loan  6M USD SOFR+ 3.75%  0.50%  4.45% 11/22/2028  1,000,000  995,074  990,000 
Pitney Bowes Inc Services: Business Term Loan B Loan  1M USD LIBOR+ 4.00%  0.00%  4.21% 3/17/2028  2,977,500  2,960,793  2,944,003 
Pixelle Specialty Solutions LLC Forest Products & Paper Term Loan Loan  1M USD LIBOR+ 6.50%  1.00%  7.50% 10/31/2024  3,535,026  3,515,981  3,504,837 
Plastipak Holdings Inc. Containers, Packaging & Glass Term Loan B (11/21) Loan  1M USD LIBOR+ 2.50%  0.50%  3.00% 11/17/2028  2,000,000  1,990,299  1,974,380 
Playtika Holding Corp. High Tech Industries Term Loan B (3/21) Loan  1M USD LIBOR+ 2.75%  0.00%  2.96% 3/13/2028  4,466,250  4,457,371  4,415,513 
PMHC II, INC. Chemicals, Plastics, & Rubber Term Loan (02/22) Loan  3M USD SOFR+ 4.25%  0.50%  4.75% 2/2/2029  2,000,000  1,990,000  1,968,340 
PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan  6M USD LIBOR+ 3.00%  0.75%  3.75% 12/29/2027  496,250  494,183  486,945 
Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan  1M USD LIBOR+ 4.75%  0.75%  5.50% 2/12/2028  5,458,750  5,404,639  5,333,635 
Pre-Paid Legal Services, Inc. Services: Consumer Term Loan (12/21) Loan  3M USD LIBOR+ 3.75%  0.50%  4.25% 12/15/2028  3,000,000  2,975,633  2,973,000 
Presidio, Inc. Services: Business Term Loan B (1/20) Loan  1M USD LIBOR+ 3.50%  0.00%  3.71% 1/22/2027  492,500  491,700  488,038 
Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan  6M USD LIBOR+ 2.75%  0.75%  3.50% 9/23/2026  3,556,300  3,553,818  3,513,837 
PRIORITY HOLDINGS, LLC Services: Consumer Term Loan Loan  1M USD LIBOR+ 5.75%  1.00%  6.75% 4/27/2027  2,985,000  2,957,411  2,973,806 
PriSo Acquisition Corporation Construction & Building Term Loan (01/21) Loan  3M USD LIBOR+ 3.25%  0.75%  4.00% 12/28/2027  496,248  494,100  487,832 
Project Leopard Holdings Inc High Tech Industries Term Loan Loan  6M USD LIBOR+ 4.75%  1.00%  5.75% 7/5/2024  495,000  494,242  492,678 
Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan  1M USD LIBOR+ 3.00%  1.00%  4.00% 1/29/2025  481,388  480,315  474,017 
PUG LLC Services: Consumer Term Loan B (02/20) Loan  1M USD LIBOR+ 3.50%  0.00%  3.71% 2/12/2027  485,075  483,298  475,374 
QUEST BORROWER LIMITED High Tech Industries Term Loan (1/22) Loan  3M USD SOFR+ 4.25%  0.50%  4.75% 1/19/2029  2,000,000  1,980,237  1,968,760 
Rackspace Technology Global, Inc. High Tech Industries Term Loan (1/21) Loan  1M USD LIBOR+ 2.75%  0.75%  3.50% 2/15/2028  496,250  494,141  480,519 
RealPage, Inc. High Tech Industries Term Loan (04/21) Loan  1M USD LIBOR+ 3.25%  0.50%  3.75% 4/24/2028  997,500  995,328  985,720 
Renaissance Learning, Inc. Services: Consumer Term Loan (5/18) Loan  1M USD LIBOR+ 3.25%  0.00%  3.46% 5/30/2025  2,969,141  2,946,381  2,922,496 
Rent-A-Center, Inc. Retail Term Loan B2 (9/21) Loan  1M USD LIBOR+ 3.25%  0.50%  3.81% 2/17/2028  993,744  991,647  973,869 
Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan  6M USD LIBOR+ 5.50%  1.00%  6.50% 12/20/2024  4,343,378  4,268,021  4,251,082 
Resideo Funding Inc. Services: Consumer Term Loan (1/21) Loan  1M USD LIBOR+ 2.25%  0.50%  2.75% 2/11/2028  1,488,750  1,486,251  1,481,306 
Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan  3M USD LIBOR+ 4.25%  1.00%  5.25% 4/30/2024  3,084,702  3,078,180  3,067,366 
Restoration Hardware, Inc. Retail Term Loan (9/21) Loan  3M USD LIBOR+ 2.50%  0.50%  3.00% 10/20/2028  3,497,500  3,489,704  3,456,509 
Reynolds Consumer Products LLC Containers, Packaging & Glass Term Loan Loan  1M USD LIBOR+ 1.75%  0.00%  1.96% 1/29/2027  1,291,932  1,290,988  1,271,829 
Reynolds Group Holdings Inc. Metals & Mining Term Loan B2 Loan  1M USD LIBOR+ 3.25%  0.00%  3.46% 2/5/2026  3,465,000  3,449,546  3,406,545 
Robertshaw US Holding Corp. Consumer goods: Durable Term Loan B Loan  6M USD LIBOR+ 3.50%  1.00%  4.50% 2/28/2025  962,500  961,492  877,800 
Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan  1M USD LIBOR+ 4.25%  0.00%  4.46% 11/28/2025  2,905,190  2,897,593  2,876,138 
Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan  6M USD LIBOR+ 3.50%  1.00%  4.50% 6/2/2025  5,637,965  5,601,072  5,592,185 
RV Retailer LLC Automotive Term Loan Loan  3M USD SOFR+ 3.75%  0.75%  4.50% 2/8/2028  1,985,000  1,967,852  1,951,513 
Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+ 3.00%  0.75%  3.75% 9/1/2027  493,750  487,862  489,583 


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 
S&S HOLDINGS LLC Services: Business Term Loan Loan  3M USD LIBOR+ 5.00%  0.50%  5.50% 3/10/2028  2,483,744  2,427,454  2,458,906 
Sally Holdings LLC Retail Term Loan B Loan  1M USD LIBOR+ 2.25%  0.00%  2.46% 7/5/2024  748,409  746,932  740,925 
Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan  1M USD LIBOR+ 3.00%  0.75%  3.75% 4/25/2025  987,538  967,436  979,519 
Schweitzer-Mauduit International, Inc. High Tech Industries Term Loan B Loan  1M USD LIBOR+ 3.75%  0.75%  4.50% 4/20/2028  2,985,000  2,969,212  2,895,450 
                                
Scientific Games Holdings LP Hotel, Gaming & Leisure Term Loan B Loan  3M USD SOFR+ 3.50%  0.50%  4.00% 2/3/2029  500,000  498,750  496,460 
SETANTA AIRCRAFT LEASING DAC Aerospace & Defense Term Loan Loan  3M USD LIBOR+ 2.00%  0.00%  2.14% 11/2/2028  1,000,000  997,653  993,440 
Signify Health, LLC Healthcare & Pharmaceuticals Term Loan B (6/21) Loan  3M USD LIBOR+ 3.25%  0.50%  3.75% 6/16/2028  498,750  496,482  492,206 
Sitel Worldwide Corporation Services: Business USD Term Loan (7/21) Loan  3M USD LIBOR+ 3.75%  0.50%  4.25% 8/28/2028  1,995,000  1,985,688  1,981,294 
SiteOne Landscape Supply, LLC Services: Business Term Loan (3/21) Loan  3M USD LIBOR+ 2.00%  0.50%  2.50% 3/18/2028  785,769  784,048  780,528 
SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan  3M USD LIBOR+ 2.50%  0.00%  2.80% 1/23/2025  490,000  490,000  472,238 
Sotheby’s Services: Business Term Loan (7/21) Loan  3M USD LIBOR+ 4.50%  0.50%  5.00% 1/15/2027  3,256,472  3,207,096  3,240,190 
Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber Term Loan (04/21) Loan  1M USD LIBOR+ 3.50%  0.75%  4.25% 8/2/2028  2,000,000  1,990,687  1,985,000 
Specialty Pharma III Inc. Services: Business Term Loan Loan  1M USD LIBOR+ 4.50%  0.75%  5.25% 3/31/2028  1,995,000  1,977,135  1,975,050 
Spectrum Brands, Inc. Consumer goods: Durable Term Loan (2/21) Loan  3M USD LIBOR+ 2.00%  0.50%  2.50% 3/3/2028  496,250  495,145  494,389 
Spin Holdco, Inc. Services: Consumer Term Loan 3/21 Loan  3M USD LIBOR+ 4.00%  0.75%  4.75% 3/4/2028  2,977,500  2,962,439  2,958,474 
SRAM, LLC Consumer goods: Durable Term Loan (05/21) Loan  1M USD LIBOR+ 2.75%  0.50%  3.26% 5/12/2028  3,600,000  3,594,517  3,571,488 
                                
SS&C Technologies, Inc. Services: Business Term Loan B3 Loan  1M USD LIBOR+ 1.75%  0.00%  1.96% 4/16/2025  190,170  189,956  186,819 
SS&C Technologies, Inc. Services: Business Term Loan B4 Loan  1M USD LIBOR+ 1.75%  0.00%  1.96% 4/16/2025  154,375  154,203  151,655 
SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan  1M USD LIBOR+ 1.75%  0.00%  1.96% 4/16/2025  477,615  477,001  469,376 
STANDARD INDUSTRIES INC. Construction & Building Term Loan B Loan  3M USD LIBOR+ 2.50%  0.50%  3.00% 9/22/2028  640,250  634,225  637,503 
Staples, Inc. Wholesale Term Loan (03/19) Loan  3M USD LIBOR+ 5.00%  0.00%  5.13% 4/16/2026  4,386,462  4,265,782  4,154,813 
Stars Group Inc. (The) Hotel, Gaming & Leisure Term Loan Loan  3M USD LIBOR+ 2.25%  0.00%  2.47% 7/21/2026  1,995,000  1,990,864  1,972,776 
Storable, Inc High Tech Industries Term Loan B Loan  6M USD LIBOR+ 3.25%  0.50%  3.75% 4/17/2028  500,000  498,861  494,375 
Superannuation & Investments US LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+ 3.75%  0.50%  4.25% 12/1/2028  1,000,000  990,274  995,940 
Sylvamo Corporation Forest Products & Paper Term Loan Loan  1M USD LIBOR+ 4.50%  0.50%  5.00% 8/18/2028  1,093,333  1,082,992  1,085,133 
Syncsort Incorporated High Tech Industries Term Loan B (10/21) Loan  3M USD LIBOR+ 4.00%  0.75%  4.75% 4/24/2028  2,495,000  2,493,770  2,465,684 
Syniverse Holdings, Inc. Telecommunications Term Loan Loan  3M USD SOFR+ 4.25%  0.50%  4.75% 2/1/2029  500,000  495,000  499,375 
Tenable Holdings, Inc. Services: Business Term Loan B (6/21) Loan  6M USD LIBOR+ 2.75%  0.50%  3.27% 7/7/2028  1,000,000  997,633  986,250 
                                
Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD SOFR+ 5.25%  1.00%  6.25% 7/15/2025  4,428,522  4,355,261  4,383,129 
Tenneco Inc Capital Equipment Term Loan B Loan  1M USD LIBOR+ 3.00%  0.00%  3.21% 10/1/2025  1,455,000  1,447,215  1,444,088 
Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+ 4.00%  1.00%  5.00% 9/27/2024  1,920,000  1,918,652  1,881,600 


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 
The Dun & Bradstreet Corporation Services: Business Term Loan Loan  1M USD LIBOR+ 3.25%  0.00%  3.46% 2/6/2026  1,000,000  998,750  988,330 
The Dun & Bradstreet Corporation Services: Business Term Loan B Loan  1M USD SOFR+ 3.25%  0.00%  3.44% 1/5/2029  250,000  248,180  246,668 
THE KNOT WORLDWIDE INC. Services: Consumer Term Loan (1/22) Loan  1M USD SOFR+ 4.50%  0.00%  4.67% 12/19/2025  4,869,796  4,863,346  4,829,231 
The Octave Music Group, Inc (Touchtunes) Services: Business Term Loan B Loan  1M USD LIBOR+ 6.00%  1.00%  7.00% 5/29/2025  2,893,526  2,872,208  2,871,824 
Thor Industries, Inc. Automotive USD Term Loan (3/21) Loan  1M USD LIBOR+ 3.00%  0.00%  3.25% 2/1/2026  2,810,435  2,763,310  2,797,563 
Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan  1M USD LIBOR+ 3.50%  0.75%  4.25% 8/18/2027  495,000  489,079  487,575 
Trans Union LLC Banking, Finance, Insurance & Real Estate Term Loan Loan  1M USD LIBOR+ 2.00%  0.50%  2.50% 12/1/2028  870,968  868,877  860,804 
Transdigm, Inc. Aerospace & Defense Term Loan G (02/20) Loan  1M USD LIBOR+ 2.25%  0.00%  2.46% 8/22/2024  4,024,167  4,026,414  3,959,700 
Travel Leaders Group, LLC Hotel, Gaming & Leisure Term Loan B (08/18) Loan  1M USD LIBOR+ 4.00%  0.00%  4.21% 1/25/2024  2,412,500  2,411,191  2,268,353 
TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco Term Loan (03/21) Loan  3M USD LIBOR+ 3.50%  0.50%  4.00% 3/31/2028  1,492,500  1,485,884  1,454,352 
Tronox Pigments (Netherlands) B.V. Chemicals, Plastics, & Rubber Term Loan Loan  3M USD LIBOR+ 2.25%  0.00%  2.47% 3/10/2028  346,923  346,183  341,719 
TruGreen Limited Partnership Services: Consumer Term Loan Loan  1M USD LIBOR+ 4.00%  0.75%  4.75% 10/29/2027  964,241  957,748  961,830 
                                
Uber Technologies, Inc. Transportation: Consumer Term Loan B (2/21) Loan  1M USD LIBOR+ 3.50%  0.00%  3.71% 2/25/2027  3,947,943  3,909,627  3,905,740 
Ultra Clean Holdings, Inc. High Tech Industries Incremental Term Loan 3/21 Loan  1M USD LIBOR+ 3.75%  0.00%  3.96% 8/27/2025  884,205  880,505  882,366 
Unimin Corporation Metals & Mining Term Loan (12/20) Loan  3M USD LIBOR+ 4.00%  1.00%  5.00% 7/31/2026  496,815  471,432  490,853 
United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+ 3.25%  0.00%  3.46% 10/22/2025  1,624,974  1,562,482  1,616,166 
United Road Services Inc. Transportation: Cargo Term Loan (10/17) Loan  6M USD LIBOR+ 5.75%  1.00%  6.75% 9/1/2024  920,843  915,490  826,457 
Univar Inc. Chemicals, Plastics, & Rubber Term Loan B6 Loan  1M USD LIBOR+ 2.00%  0.00%  2.21% 6/2/2028  1,990,000  1,980,782  1,974,458 
Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/21) Loan  1M USD LIBOR+ 3.25%  0.75%  4.00% 3/15/2026  2,471,487  2,464,765  2,451,913 
US Ecology, Inc. Environmental Industries Term Loan B Loan  1M USD LIBOR+ 2.50%  0.00%  2.71% 11/2/2026  490,000  489,302  488,040 
Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan  1M USD LIBOR+ 3.00%  0.00%  3.21% 1/20/2028  1,847,121  1,844,606  1,827,264 
Vaco Holdings, LLC Services: Business Term Loan (01/22) Loan  1M USD SOFR+ 5.00%  0.75%  5.75% 1/19/2029  250,000  248,777  248,124 
Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan  3M USD LIBOR+ 4.00%  0.00%  4.50% 8/20/2025  1,382,319  1,377,042  1,354,672 
                                
Vertex Aerospace Services Corp Aerospace & Defense Term Loan (10/21) Loan  1M USD LIBOR+ 4.00%  0.75%  4.75% 12/6/2028  1,000,000  995,345  992,080 
VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan (01/22) Loan  Daily SOFR+ 3.00%  0.50%  3.50% 1/12/2029  3,100,888  3,092,414  3,071,833 
Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (9/21) Loan  1M USD LIBOR+ 2.25%  0.00%  2.36% 9/28/2028  2,992,500  2,982,995  2,971,942 
Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan  1M USD LIBOR+ 1.75%  0.00%  1.87% 12/31/2025  907,176  906,677  890,075 
Vizient, Inc Healthcare & Pharmaceuticals Term Loan B-6 Loan  1M USD LIBOR+ 2.00%  0.00%  2.21% 5/6/2026  486,250  485,567  480,779 
VM Consolidated, Inc. Construction & Building Term Loan B (3/21) Loan  6M USD LIBOR+ 3.25%  0.00%  3.60% 3/19/2028  2,339,327  2,336,223  2,322,951 
Vouvray US Finance LLC High Tech Industries Term Loan Loan  1M USD LIBOR+ 3.00%  1.00%  4.00% 3/11/2024  476,250  476,250  411,837 


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 
Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G Loan  1M USD LIBOR+ 2.13%  0.00%  2.33% 1/20/2028  1,250,000  1,249,760  1,234,763 
Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries Term Loan (3/18) Loan  1M USD LIBOR+ 3.75%  1.00%  4.75% 3/15/2025  489,822  488,550  469,004 
Watlow Electric Manufacturing Company High Tech Industries Term Loan B Loan  3M USD LIBOR+ 3.75%  0.50%  4.25% 3/2/2028  2,481,250  2,470,270  2,452,294 
                                
West Corporation Telecommunications Term Loan B (Olympus Merger) Loan  3M USD LIBOR+ 4.00%  1.00%  5.00% 10/10/2024  1,086,078  1,047,433  967,424 
West Corporation Telecommunications Term Loan B Loan  3M USD LIBOR+ 3.50%  1.00%  4.50% 10/10/2024  2,599,274  2,562,059  2,301,449 
WEX Inc. Services: Business Term Loan B (3/21) Loan  1M USD LIBOR+ 2.25%  0.00%  2.46% 3/31/2028  2,985,000  2,974,005  2,937,419 
WildBrain Ltd. Media: Diversified & Production Term Loan Loan  1M USD LIBOR+ 4.25%  0.75%  5.00% 3/27/2028  1,985,000  1,949,907  1,966,401 
WP CITYMD BIDCO LLC Services: Consumer Term Loan B Loan  6M USD LIBOR+ 3.25%  0.50%  3.75% 12/22/2028  7,424,013  7,399,065  7,355,340 
Xperi Corporation High Tech Industries Term Loan Loan  1M USD LIBOR+ 3.50%  0.00%  3.71% 6/8/2028  2,741,617  2,730,066  2,719,355 
ZEBRA BUYER LLC Banking, Finance, Insurance & Real Estate Term Loan 4/21 Loan  3M USD LIBOR+ 3.25%  0.50%  3.75% 11/1/2028  887,097  883,013  882,661 
Zekelman Industries, Inc. Metals & Mining Term Loan (01/20) Loan  1M USD LIBOR+ 2.00%  0.00%  2.14% 1/25/2027  968,914  968,914  954,622 
Zodiac Pool Solutions Consumer goods: Durable Term Loan (1/22) Loan  1M USD SOFR+ 2.00%  0.50%  2.50% 1/19/2029  500,000  498,783  493,440 
                          $653,022,265 $638,963,350 

  Number of Shares  Cost  Fair Value 
Cash and cash equivalents            
U.S. Bank Money Market (c)  6,171,793  $6,171,793  $6,171,793 
Total cash and cash equivalents  6,171,793  $6,171,793  $6,171,793 

(a)All or a portion of this investment has an unfunded commitment as of February 28, 2022
(b)As of February 28, 2022, the investment was in default and on non-accrual status.
(c)Included within cash and cash equivalents in Saratoga CLO’s Statements of Assets and Liabilities as of February 28, 2022.
(d)Investments include Payment-in-Kind Interest.

LIBOR—London Interbank Offered RateSOFR - Secured Overnight Financing RateWIBOR - Warsaw Interbank Offered Rate1M USD LIBOR—The 1 month USD LIBOR rate as of February 28, 2022 was 0.23%.2M USD LIBOR—The 2 month USD LIBOR rate as of February 28, 2022 was 0.50%.3M USD LIBOR—The 3 month USD LIBOR rate as of February 28, 2022 was 0.51%.6M USD LIBOR—The 6 month USD LIBOR rate as of February 28, 2022 was 0.80%.12M USD LIBOR - The 12 month USD LIBOR rate as of February 28, 2022 was 1.28%.3 PL WIBOR - The 3 month PL WIBOR rate as of February 28, 2022 was 3.65%.Daily SOFR- The daily SOFR rate as of February 28, 2022 was 0.05%.1M SOFR - The 1 month SOFR rate as of February 28, 2022 was 0.05%.3M SOFR - The 3 month SOFR rate as of February 28, 2022 was 0.04%.Prime—The Prime Rate as of February 28, 2022 was 3.25%.

SOFR - Secured Overnight Financing Rate

WIBOR - Warsaw Interbank Offered Rate

1M USD LIBOR—The 1 month USD LIBOR rate as of February 28, 2022 was 0.23%.

2M USD LIBOR—The 2 month USD LIBOR rate as of February 28, 2022 was 0.50%.

3M USD LIBOR—The 3 month USD LIBOR rate as of February 28, 2022 was 0.51%.

6M USD LIBOR—The 6 month USD LIBOR rate as of February 28, 2022 was 0.80%.

12M USD LIBOR - The 12 month USD LIBOR rate as of February 28, 2022 was 1.28%.

3 PL WIBOR - The 3 month PL WIBOR rate as of February 28, 2022 was 3.65%.

Daily SOFR- The daily SOFR rate as of February 28, 2022 was 0.05%.

1M SOFR - The 1 month SOFR rate as of February 28, 2022 was 0.05%.

3M SOFR - The 3 month SOFR rate as of February 28, 2022 was 0.04%.

Prime—The Prime Rate as of February 28, 2022 was 3.25%.

See accompanying notes to consolidated financial statements.


 

Note 5. Investment in SLF JV

On October 26, 2021, the Company and TJHA entered into the LLC Agreement to co-manage SLF JV. SLF JV is invested in Saratoga Investment Corp Senior Loan Fund 2022-1, Ltd (“SLF 2021,2021”), which is a wholly owned subsidiary of SLF JV. SLF 2021 was formed for the purpose of making investments in a diversified portfolio of broadly syndicated first lien and second lien term loans or bonds in the primary and secondary markets.

On September 30, 2022, SLF 2021 was renamed to Saratoga Investment Corp Senior Loan Fund 2022-1, Ltd. (“SLF 2022”).

 

The Company and TJHA have equal voting interest on all material decisions with respect to SLF JV, including those involving its investment portfolio, and equal control of corporate governance. No management fee is charged to SLF JV as control and management of SLF JV is shared equally.

 

The Company and TJHA have committed to provide up to a combined $50.0 million of financing to SLF JV through cash contributions, with the Company providing $43.75 million and TJHA providing $6.25 million, resulting in an 87.5% and 12.5% ownership between the two parties. The financing is issued in the form of an unsecured note and equity. The unsecured note will pay a fixed rate of 10.0% per annum and is due and payable in full on June 15, 2023. As of August 31,November 30, 2022, the Company and TJHA’s investment in SLF JV consisted of an unsecured note of $14.1$17.6 million and $2.0$2.5 million, respectively; and membership interest of $14.1$17.6 million and $2.0$2.5 million, respectively. As of August 31,November 30, 2022 and February 28, 2022, the Company’s investment in the unsecured note of SLF JV had a fair value of $14.1$17.6 million and $13.1 million, respectively, and the Company’s investment in the membership interests of SLF JV had a fair value of $6.7$9.2 million and $12.0 million, respectively.

As of August 31, 2022, the Company earned $0.7 million of interest income related to SLF JV, which is included in interest income. As of August 31, 2022 and February 28, 2022, $0.00 million and $0.09 million, respectively, of interest income related to SLF JV was included in interest receivable.

SLF JV’s investment in SLF 2021 is in the form of an unsecured loan. The unsecured note will pay a floating rate of LIBOR plus 7.00% per annum and is due and payable in full on June 9, 2023. As of August 31, 2022, SLF JV’s investment in SLF 2021 had an aggregate fair value of approximately $23.7 million.

 

The Company has determined that SLF JV is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-ownedwholly owned investment company subsidiary. SLF JV is not a wholly-ownedwholly owned investment company subsidiary as the Company and TJHA each have an equal 50% voting interest in SLF JV and thus neither party has a controlling financial interest. Furthermore, ASC 810, Consolidation concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate SLF JV.

 

Note 6. Income TaxesAs of November 30, 2022, the Company earned $1.1 million of interest income related to SLF JV, which is included in interest income. As of November 30, 2022 and February 28, 2022, $0.01 million and $0.1 million, respectively, of interest income related to SLF JV was included in interest receivable.

 

SLF JV’s initial investment in SLF 2022 was in the form of an unsecured loan. The unsecured loan paid a floating rate of LIBOR plus 7.00% per annum and was due and payable in full on June 9, 2023. The unsecured loan was repaid in full on October 28, 2022, as part of the CLO closing.

On October 28, 2022, SLF 2022 issued $402.1 million of the 2022 JV CLO Notes through the JV CLO trust. The 2022 JV CLO Notes were issued pursuant to the JV Indenture, with the Trustee. As part of the transaction, the Company purchased 87.50% of the Class E Notes from SLF 2022 with a par value of $12.25 million. As of November 30, 2022 and February 28, 2022, the fair value of these Class E Notes were $11.0 million and $0.0 million, respectively.


Note 6. Income Taxes

SIA-ARC, Inc., SIA-Avionte, Inc., SIA-AX, Inc., SIA-GH, Inc., SIA-MAC, Inc., SIA-PP Inc., SIA-TG, Inc., SIA-TT Inc., SIA-Vector, Inc., and SIA-VR, Inc. each 100% owned by the Company, are each filing standalone C Corporation tax returns for federal and state tax 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 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. In February 2022, SIA-GH, Inc., SIA-TT Inc. and SIA-VR, Inc. received an approved plan of liquidation following the sale of equity held by each of the portfolio companies.

The Company may distribute a portion of its realized net long term capital gains in excess of realized net short term capital losses to its stockholders, but may also decide to retain a portion, or all, of its net capital gains and elect to pay the 21% U.S. federal tax on the net capital gain, potentially in the form of a “deemed distribution” to its stockholders. Income tax (provision) relating to an election to retain its net capital gains, including in the form of a deemed distribution, is included as a component of income tax (provision) benefit from realized gains on investments, depending on the character of the underlying taxable income (ordinary or capital gains), on the consolidated statements of operations.

Deferred tax assets and liabilities, and related valuation allowance as of August 31,November 30, 2022 and February 28, 2022 were as follows:

  November 30,
2022		  February 28,
2022		 
Total deferred tax assets $2,350,087  $1,991,241 
Total deferred tax liabilities  (2,311,448)  (1,293,496)
Valuation allowance on net deferred tax assets  (2,178,299)  (1,946,761)
Net deferred tax liability $(2,139,660) $(1,249,016)


  August 31,
2022		  February 28,
2022		 
Total deferred tax assets $2,157,850  $1,991,241 
Total deferred tax liabilities  (1,885,601)  (1,293,496)
Valuation allowance on net deferred tax assets  (1,982,564)  (1,946,760)
Net deferred tax liability $(1,710,315) $(1,249,015)

As of August 31,November 30, 2022, the valuation allowance on deferred tax assetsliability was $2.0$2.2 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 income tax expense for the three months ended August 31,November 30, 2022 includes $0.2$0.4 million deferred tax expense (benefit) on net change in unrealized appreciation (depreciation) on investments, $(0.5) million income tax provision/(benefit) from realized gain/(loss) on investments and ($0.1)$0.1 million net change in total operating expense, in the consolidated statement of operations, respectively. Net income tax expense for the three months ended August 31,November 30, 2021 includes $1.3$(2.5) million deferred tax expense (benefit) net change in unrealized appreciation (depreciation) on investments and $0.4$2.4 million income tax provision from realized gain on investments and $0.03$(0.04) million net change in total operating expense,, in the consolidated statement of operations, respectively.

 

Net income tax expense for the sixnine months ended August 31,November 30, 2022 includes $0.6$1.0 million deferred tax expense (benefit) on net change in unrealized appreciation on investments, ($0.07)$(0.5) million income tax provision/(benefit) from realized gain/(loss) on investments and ($0.1)$(0.1) million net change in total operating expense, in the consolidated statement of operations, respectively. Net income tax expense for the sixnine months ended August 31,November 30, 2021 includes $1.6$(0.9) million deferred tax expense (benefit) net change in unrealized appreciation (depreciation) on investments $0.4$2.9 million income tax provision from realized gain on investments and $0.03$0.02 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) benefitprovisions (benefit) on investments for three and sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021:

 For the three months ended  For the six months ended  For the three months ended  For the nine months ended 
 August 31,
2022		  August 31,
2021		  August 31,
2022		  August 31,
2021		  November 30,
2022		  November 30,
2021		  November 30,
2022		  November 30,
2021		 
Current                  
Federal $(3,674) $425,828  $(217,516) $-  $(255,959) $2,157,212  $(473,475) $2,583,041 
State  (55)  50,694   78,448   -   (158,721)  289,961   (80,273)  340,655 
Net current expense  (3,729)  476,522   (139,068)  -   (414,680)  2,447,173   (553,748)  2,923,696 
Deferred                                
Federal  89,409   1,111,006   385,480   127,850   460,531   (1,916,842)  844,727   (677,986)
State  42,583   220,748   75,819   130,213   (29,901)  (604,143)  45,917   (253,182)
Net deferred expense  131,992   1,331,754   461,299   258,063   430,629   (2,520,985)  890,645   (931,168)
Net tax provision $128,263  $1,808,276  $322,231  $258,063  $15,949  $(73,812) $336,896  $1,992,528 


Note 7. Agreements and Related Party Transactions

Investment Advisory and Management Agreement

On July 30, 2010, the Company entered into the Management Agreement with our Manager. The initial term of the Management Agreement was two years from its effective date, with one-year renewals thereafter subject to certain approvals by our board of directors and/or the Company’s stockholders. Most recently, on July 5, 2022, our board of directors approved the renewal of the Management Agreement for an additional one-year term. Pursuant to the Management Agreement, our Manager implements our business strategy on a day-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.

Base Management Fee and Incentive Management Fee

The base management fee of 1.75% per year 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 quarterly report on Form 10-Q.


The incentive management fee consists of the following two parts:

The first, payable quarterly in arrears, equals 20.0% of our pre-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 our pre-incentive fee net investment income exceeds the hurdle rate of 1.875%. Our Manager will receive 100.0% of 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 our pre-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 August 31,November 30, 2022 and August 31,November 30, 2021, the companyCompany incurred $4.1$4.3 million and $3.0$2.9 million in base management fees, respectively. For the three months ended August 31,November 30, 2022 and 2021, the Company incurred $1.7$2.3 million and $1.7$1.5 million in incentive fees related to pre-incentive fee net investment income, respectively. For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the Company accrued a (benefit) of $(1.1)$(0.8) million and an expense of $0.3$0.9 million in incentive fees related to capital gains.

 

For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the companyCompany incurred $7.9$12.2 million and $5.8$8.7 million in base management fees, respectively. For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the Company incurred $1.7$3.9 million and $3.2$4.8 million in incentive fees related to pre-incentive fee net investment income, respectively. For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the Company accrued a (benefit) of ($3.0)3.7) million and an expense of $4.0$4.9 million in incentive fees related to capital gains.

 

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 August 31,November 30, 2022, the base management fees accrual was $4.1$4.3 million and the incentive fees accrual was $5.4$5.3 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities. As of February 28, 2022, the base management fees accrual was $3.2 million and the incentive fees accrual was $9.8 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities.


Administration Agreement

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 our day-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 from its effective date, with one-year renewals thereafter 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 initial two-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-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 additional one-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 additional one-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 additional one-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 additional one-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. On July 7, 2020, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $2.225 million to $2.775 million effective August 1, 2020. On July 6, 2021, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $2.775 million to $3.0 million effective August 1, 2021. On July 5, 2022, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $3.0 million to $3.275 million effective August 1, 20222022..


For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recognized $0.8 million and $0.7$0.8 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 sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recognized $1.5$2.3 million and $1.4$2.2 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 August 31,November 30, 2022, $0.2$0.01 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, 2022, $0.3 million of administrator expenses were accrued and included in due to manager in the accompanying consolidated statements of assets and liabilities.

Saratoga CLO

On December 14, 2018, the Company completed the third refinancing and issuance of 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. A non-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 the Class F-R-2 Notes tranche and $7.5 million in aggregate principal amount of the Class G-R-2 Notes tranche at par. Concurrently, the existing $4.5 million of Class F notes and $20.0 million CLO 2013-1 Warehouse Loan 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. During the year ended February 29, 2020, the Company received full payment of $1.7 million from the Saratoga CLO for such transaction costs.

In conjunction with the third refinancing and issuance 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. See Note 4 for additional information.

 


On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. The non-call period was extended to February 2022. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. At August 31, 2021, the outstanding receivable of 2.6 million was repaid in full.

On August 9, 2021, the Company exchanged its existing $17.9 million Class F-R-3 Notes for $8.5 million Class F-1-R-3 Notes and $9.4 million Class F-2-R-3 Notes at par. On August 11, 2021, the Company sold its Class F-1-R-3 Notes to third parties, resulting in a realized loss of $0.1 million.

For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recognized management fee income of $0.8 million and $0.8 million, respectively, related to the Saratoga CLO.

For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recognized management fee income of $1.6$2.5 million and $1.6$2.4 million, respectively, related to the Saratoga CLO.

For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the Company neither bought nor sold any investments from the Saratoga CLO.

SLF JV

On October 26, 2021, the Company and TJHA entered into an LLC Agreement to co-manage the SLF JV. SLF JV is a joint venture that is expected to invest in the debt or equity interests of collateralized loan obligations, loan, notes and other debt instruments.

On October 28, 2022, SLF 2022 issued $402.1 million of the 2022 JV CLO Notes through the JV CLO trust. The 2022 JV CLO Notes were issued pursuant to the JV Indenture, with the Trustee.

As of August 31,November 30, 2022, the Company’s investment in the SLF JV had a fair value of $20.8$26.8 million, consisting of an unsecured loan of $14.1$17.6 million and membership interest of $6.7$9.2 million. In addition, the Company has ano outstanding receivable of $0.02 million outstandingbalance from the SLF JV included in Due from Affiliate in the consolidated statementsas of assets and liabilities.

Note 8. BorrowingsNovember 30, 2022.

As part of the JV CLO trust transaction, the Company purchased 87.50% of the Class E Notes from SLF 2022 with a par value of $12.25 million.

Note 8. 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% after giving effect to such leverage, or, 150% if certain requirements under the 1940 Act are met. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, our board of directors, including a majority of our directors who are not “interested persons” (as defined in Section 2(a)(19) of the 1940 Act”) of the Company (“independent directors”), approved a minimum asset coverage ratio of 150%. The 150% asset coverage ratio became effective on April 16, 2019. 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 184.2%173.2% as of August 31,November 30, 2022 and 209.3% as of February 28, 2022.


 

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 a two-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 with Madison Capital Funding LLC (the “Madison Credit Facility”), 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 and SBIC II LP was pledged under the Madison Credit Facility to secure our obligations thereunder.

On February 24, 2012, we amended the Madison Credit Facility to, among other things:

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

●extend the period during which we may make and repay borrowings under the Madison 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 Madison 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 Madison 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 Madison 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 Madison 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 Madison 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%.

On April 24, 2020, we entered into a fourth amendment to the Madison Credit Facility to, among other things:

●permit certain amendments related to the Paycheck Protection Program (“Permitted PPP Amendment”) to Loan Asset Documents;

●exclude certain debt and interest amounts allowed by the Permitted PPP Amendments from certain calculations related to Net Leverage Ratio, Interest Coverage Ratio and EBITDA; and

●exclude such Permitted PPP Amendments from constituting a Material Modification.


On September 14, 2020, we entered into a fifth amendment to the Madison Credit Facility to, among other things:

●extend the commitment termination date of the Madison Credit Facility from September 17, 2020 to September 17, 2021, with no change to the maturity date of September 17, 2025.

●provide for the transition away from the LIBOR Rate in the market, and

●expand the definition of “Eligible Loan Asset” to allow investments with certain recurring revenue features to qualify as collateral and be included in the borrowing base.

On September 13, 2021, we entered into a sixth amendment to the Madison Credit Facility to, among other things:

●Extend the commitment termination date of the Madison Credit Facility from September 17, 2021 to October 1, 2021, with no change to maturity date of September 17, 2025.

On October 4, 2021, all outstanding amounts on the Madison Credit Facility were repaid and the Madison Credit Facility was terminated. The repayment and termination of the Madison Credit Facility resulted in a realized loss on the extinguishment of debt of $0.8 million. 

On October 4, 2021, the Company entered into a $50.0 million senior secured revolving credit facility with the Lender, supported by loans held by SIF II and pledged to the Encina Credit Facility. During the first two years following the closing date, SIF II may request an increase in the commitment amount to up to $75.0 million. The terms of the Encina Credit Facility require a minimum drawn amount of $12.5 million at all times during the first six months following the closing date, which increases to the greater of $25.0 million or 50% of the commitment amount in effect at any time thereafter. The term of the Encina Credit Facility is three years. Advances under the Encina Credit Facility bear interest at a floating rate per annum equal to LIBOR plus 4.0%, with LIBOR having a floor of 0.75%, with customary provisions related to the selection by the Lender and the Company of a replacement benchmark rate. The commitment termination date is October 4, 2024.

In addition to any fees or other amounts payable under the terms of the Encina Credit Facility, an administrative agent fee per annum equal to $0.1 million is payable in equal monthly installments in arrears.


As of August 31,November 30, 2022 and February 28, 2022, there were $25.0 million and $12.5 million outstanding under the Encina Credit Facility. During the applicable periods, the Company was in compliance with all of the limitations and requirements of the Encina Credit Facility. Financing costs of $1.4 million related to the Encina Credit Facility have been capitalized and are being amortized over the term of the Encina Credit Facility.

For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $0.4$0.6 million and $0.2 million of interest expense related to the Encina Credit Facility and the Madison Credit Facility, respectively, which includes commitment and administrative agent fees. For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $0.1 million and $0.05$0.08 million of amortization of deferred financing costs related to the Encina Credit Facility and the Madison 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 three months ended August 31,November 30, 2022, the weighted average interest rate on the outstanding borrowings under the Encina Credit Facility was 5.83%7.19%, and the average dollar amount of outstanding borrowings under the Encina Credit Facility was $25.0$32.8 million.

 

For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $0.7$1.2 million and $0.4$0.6 million of interest expense related to the Encina Credit Facility and the Madison Credit Facility, respectively, which includes commitment and administrative agent fees. For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $0.2$0.3 million and $0.08$0.2 million of amortization of deferred financing costs related to the Encina Credit Facility and the Madison 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 sixnine months ended August 31,November 30, 2022, the weighted average interest rate on the outstanding borrowings under the Encina Credit Facility was 5.40%6.16%, and the average dollar amount of outstanding borrowings under the Encina Credit Facility was $22.5$25.9 million.

 

The Encina 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 Encina 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. Availability on the Encina 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. The Company will pay the lender 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 Encina Credit Facility.

 


Our borrowing base under the Encina Credit Facility was $50.3$69.8 million subject to the Encina Credit Facility cap of $50.0 million at August 31,November 30, 2022. For purposes of determining the borrowing base, most assets are assigned the values set forth in our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed with the SEC. Accordingly, the August 31,November 30, 2022 borrowing base relies upon the valuations set forth in the Quarterly Report on Form 10-Q for the period ended MayAugust 31, 2022. The valuations presented in this Quarterly Report on Form 10-Q will not be incorporated into the borrowing base until after this Quarterly Report on Form 10-Q is filed with the SEC.

SBA Debentures

Our wholly owned SBIC subsidiaries are able to borrow funds from the SBA against regulatory capital (which generally approximates equity capital in respective SBIC) and is subject to customary regulatory requirements, including, but not limited to, a periodic examination by the SBA.

On August 14, 2019, the Company’s wholly owned subsidiary, SBIC II LP, received an SBIC license from the SBA. On September 29, 2022, the Company’s wholly owned subsidiary, SBIC II LP’sIII LP, also received an SBIC license providesfrom the SBA. SBIC LP’s license provided up to $175.0$150.0 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,debentures, while SBIC II LP’s and SBIC III LP’s SBIC licenses provide up to $175.0 million each. Under current SBIC regulations, for two or more SBICs under common control, the maximum amount of SBA-guaranteedoutstanding SBA debentures that affiliated SBIC funds can have outstanding was increased from $225.0 million tocannot exceed $350.0 million subject to SBA approval.with at least $175.0 million in combined regulatory capital.  With thisthe third license approval, Saratoga can continue to grow its SBA relationship from $150.0 million to $325.0$350.0 million of committed capital.


As of August 31,November 30, 2022, we have funded SBIC LP, SBIC II LP and SBIC IIIII LP with an aggregate total of equity capital of $75.0 million, $87.5 million and $87.5$2.5 million, respectively, and have $233.7$242.7 million in SBA-guaranteed debentures outstanding, of which $67.7 million iswas held in SBIC LP, $175.0 million was held in SBIC II LP, and $166.0$0.0 million held in SBIC IIIII LP. SBA debentures are non-recourse to us, have a 10-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 over 10-year U.S. Treasury Notes. SBA current regulations limit the amount that SBIC LP, SBIC II LP and SBIC IIIII LP may borrow to a maximum of $150.0 million, $175.0 million, and $175.0 million, respectively, which is up to twice its potential regulatory capital. DuringUnder current SBIC regulations, for two or more SBICs under common control, the three months ended August 31, 2022, we redeemed $18.3 millionmaximum amount of outstanding SBA debentures cannot exceed $350.0 million with at least $175.0 million in SBIC LP, resulting in the recognition of a realized loss on the extinguishment of debt of $0.2 million.combined 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$24.0 million and have average annual fully taxed net income not exceeding $6.5$8.0 million for the two most recent fiscal years. In addition, an SBIC must devote 25.0% of its investment activity to ’’smaller‘‘smaller enterprises’’ as defined by the SBA. A smaller enterprise 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, SBIC II LP, and SBIC IIIII 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 or SBIC III LP will receive SBA-guaranteed debenture funding, which is dependent upon SBIC II LP and SBIC III LP continuing to be in compliance with SBA regulations and policies. The SBA, as a creditor, will have a superior claim to SBIC LP, SBIC II LP, and SBIC IIIII LP assets over our stockholders and debtholders in the event we liquidate SBIC LP, SBIC II LP, and SBIC IIIII LP or the SBA exercises its remedies under the SBA-guaranteed debentures issued by SBIC LP, SBIC II LP, and SBIC IIIII LP upon an event of default.

The Company received exemptive relief from the SEC to permit it to exclude the senior securities issued by SBIC subsidiaries from the definition of senior securities in the asset coverage requirement applicable to the Company under the 1940 Act. This allows the Company increased flexibility under the asset coverage requirement by permitting it to borrow up to $325.0 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, the independent directors of the Company approved of the Company 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.

As noted above, as of August 31,November 30, 2022, there was $233.7$242.7 million of SBA debentures outstanding and as of February 28, 2022, there was $185.0 million of SBA debentures outstanding. 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, $6.0 million and $4.9$0.3 million related to the SBA debentures issued by SBIC LP, and SBIC II LP, SBIC III LP, respectively, have been capitalized and are being amortized over the term of the commitment and drawdown.

For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $1.5$1.7 million and $1.2$1.1 million of interest expense related to the SBA debentures, respectively. For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $0.2 million and $0.2 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 August 31,November 30, 2022 and August 31,November 30, 2021 on the outstanding borrowings of the SBA debentures was 2.75%2.86% and 2.65%2.44%, respectively. During the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of SBA debentures outstanding was $222.0$242.7 million and $181.1$176.6 million, respectively.


 

For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $2.9$4.6 million and $2.4$3.4 million of interest expense related to the SBA debentures, respectively. For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $0.5$0.7 million and $0.4$0.5 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 sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021 on the outstanding borrowings of the SBA debentures was 2.67%2.74% and 2.78%2.66%, respectively. During the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of SBA debentures outstanding was $218.4$226.5 million and $169.8$172.0 million, respectively.

In December 2015, the 2016 omnibus spending bill approved by Congress and signed into law by the President increased the amount of SBA-guaranteed debentures that affiliated SBIC funds can have outstanding from $225.0 million to $350.0 million, subject to SBA approval. SBA regulations previously limited the amount of SBA-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 in SBA-guaranteed debentures when they have at least $175.0 million in combined regulatory capital.Notes

Notes

In May 10, 2013, the Company issued $48.3 million in aggregate principal amount of 7.50% fixed-rate notes due 2020 (the “2020 Notes”). The 2020 Notes were redeemed in full on January 13, 2017 and are no longer listed on the New York Stock Exchange (the “NYSE”).

On May 29, 2015, the Company entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. Inc. 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-Market (“ATM”) offering. Prior to the 2020 Notes being redeemed in full, the Company had sold 539,725 2022 Notes 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 net proceeds from the offering were used to repay all of the outstanding indebtedness under the 2020 Notes (as described above), and for general corporate purposes in accordance with our investment objective and strategies.

On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.5 million, respectively, in aggregate principal amount of the $74.5 million in aggregate principal amount of the issued and outstanding 2023 Notes. The 2023 Notes were listed on the NYSE under the trading symbol “SAB” with a par value of $25.00 per share,note, and have been delisted following the full redemption on February 7, 2020.

At February 29, 2020, the debt was extinguished. As such, it was not fair valued with market quotes and is not fair value leveled. The repayment of the 2023 Notes resulted in a realized loss on the extinguishment of debt of $1.6 million.

On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of our 6.25% fixed-rate notes due 2025 (the “6.25% 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 in aggregate principal amount of 6.25% 2025 Notes within 30 days. 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 6.25% 2025 Notes have been capitalized and were amortized over the term of the 6.25% 2025 Notes.


On February 5, 2019, the Company issued an additional $20.0 million in aggregate principal amount of the 6.25% 2025 Notes 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 in aggregate principal amount of 6.25% 2025 Notes within 30 days. The additional 6.25% 2025 Notes were treated as a single series with the existing 6.25% 2025 Notes under the indenture and had the same terms as the existing 6.25% 2025 Notes. 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 6.25% 2025 Notes have been capitalized and were amortized over the term of the 6.25% 2025 Notes.

On August 31, 2021, the Company redeemed $60.0 million in aggregate principal amount of the issued and outstanding 6.25% 2025 Notes. The 6.25% 2025 Notes were listed on the NYSE under the trading symbol of “SAF”, and have been delisted following the full redemption on August 31, 2021.


At August 31, 2021, the debt was extinguished. As such, it was not fair valued with market quotes and is not fair value leveled. The repayment of the 6.25% 2025 Notes resulted in a realized loss on the extinguishment of debt of $1.5 million.

For the threenine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $0.0 million and $0.9$1.9 million, respectively, of interest expense and $0.0 million and $0.1$0.2 million, respectively, of amortization of deferred financing costs related to the 6.25% 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 threenine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of 6.25% 2025 Notes outstanding was $0.00 million and $57.4$39.3 million, respectively.

On June 24, 2020, the Company issued $37.5 million in aggregate principal amount of our 7.25% fixed-rate notes due 2025 (the “7.25% 2025 Notes”) for net proceeds of $36.3 million after deducting underwriting commissions of approximately $1.2 million. Offering costs incurred were approximately $0.3 million. On July 6, 2020, the underwriters exercised their option in full to purchase an additional $5.625 million in aggregate principal amount of its 7.25% 2025 Notes. Net proceeds to the Company were $5.4 million after deducting underwriting commissions of approximately $0.2 million. 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 7.25% 2025 Notes have been capitalized and were amortized over the term of the 7.25% 2025 Notes.

On July 14, 2022, the Company redeemed $43.1 million in aggregate principal amount of the issued and outstanding 7.25% 2025 Notes. The 7.25% 2025 Notes were listed on the NYSE under the trading symbol of “SAK”, and have been delisted following the full redemption on July 14, 2022.

On July 14, 2022, the debt was extinguished. As such, it was not fair valued with market quotes and is not fair value leveled. The repayment of the 7.25% 2025 Notes resulted in a realized loss on the extinguishment of debt of $1.2 million.

As of February 28, 2022, the carrying amount and fair value of the 7.25% 2025 Notes was $43.1 million and $43.9 million, respectively.

For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $0.4$0.0 million and $0.8 million, respectively, of interest expense and $0.04$0.00 million and $0.08 million, respectively, of amortization of deferred financing costs related to the 7.25% 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 three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of the 7.25% 2025 Notes outstanding was $10.8$0.0 million and $43.1 million respectively.

For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $1.2 million and $1.6$2.3 million, respectively, of interest expense and $0.1 million and $0.2 million, respectively, of amortization of deferred financing costs related to the 7.25% 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 sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of the 7.25% 2025 Notes outstanding was $27.0$18.0 million and $43.1 million respectively.


 

On July 9, 2020, the Company issued $5.0 million in aggregate principal amount of our 7.75% fixed-rate notes due in 2025 (the “7.75% Notes 2025”) for net proceeds of $4.8 million after deducting underwriting commissions of approximately $0.2 million. Offering costs incurred were approximately $0.1 million. Interest on the 7.75% Notes 2025 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.75% per year, beginning August 31, 2020.year. The 7.75% Notes 2025 mature on July 9, 2025 and may be redeemed in whole or in part at any time or from time to time at our option.option, subject to a fee depending on the date of repayment. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 7.75% Notes 2025 have been capitalized and are being amortized over the term of the 7.75% Notes 2025.

 

As of August 31,November 30, 2022, the total 7.75% Notes 2025 outstanding was $5.0 million. The 7.75% Notes 2025 are not listed and have a par value of $25.00 per share.note. As of February 28, 2022, there was $5.0 million outstanding of the 7.75% Notes 2025. The carrying amount of the amount outstanding of 7.75% Notes 2025 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.

For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $0.1 million and $0.1 million, respectively, of interest expense and $0.01 million and $0.01 million, respectively, of amortization of deferred financing costs related to the 7.75% Notes 2025. 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 August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of 7.75% Notes 2025 outstanding was $5.0 million and $5.0 million respectively.

For the nine months ended November 30, 2022 and November 30, 2021, we recorded $0.3 million and $0.3 million, respectively, of interest expense and $0.04 million and $0.04 million, respectively, of amortization of deferred financing costs related to the 7.75% Notes 2025. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the nine months ended November 30, 2022 and November 30, 2021 the average dollar amount of 7.75% Notes 2025 outstanding was $5.0 million and $5.0 million respectively.

On December 29, 2020, the Company issued $5.0 million in aggregate principal amount of our 6.25% fixed-rate notes due in 2027 (the “6.25% Notes 2027”). Offering costs incurred were approximately $0.1 million. Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021.year. The 6.25% Notes 2027 mature on December 29, 2027 and may be redeemed in whole or in part at any time or from time to time at our option, on or after December 29, 2024. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.1 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the 6.25% Notes 2027. The 6.25% Notes 2027 are not listed and have a par value of $25.00 per share.note.

 


On January 28, 2021, the Company issued $10.0 million in aggregate principal amount of our 6.25% fixed rate notes due in 2027 (the “6.25% Notes 2027”) for net proceeds of $9.7 million after deducting underwriting commissions of approximately $0.3 million. Offering costs incurred were approximately $0.0 million. Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021.year. The 6.25% Notes 2027 mature on January 28, 2027 and commencing January 28, 2023, 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 $0.3 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the 6.25% Notes 2027.

 

As of August 31,November 30, 2022, the total 6.25% Notes 2027 outstanding was $15.0 million. The 6.25% Notes 2027 are not listed and have a par value of $25.00 per share.note. As of February 28, 2022, there was $15.0 million outstanding of the 6.25% Notes 2027. The carrying amount of the amount outstanding of 6.25% Notes 2027 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.


For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $0.2 million and $0.2 million, respectively, of interest expense and $0.02 million and $0.02 million, respectively, of amortization of deferred financing costs related to the 6.25% Notes 2027. 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 August 31,November 30, 2022 and August 31,November 30, 2021 the average dollar amount of 6.25% Notes 2027 outstanding was $15.0 million and $15.0 million respectively.

For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $0.5$0.7 million and $0.5$0.7 million, respectively, of interest expense and $0.04$0.05 million and $0.04$0.05 million, respectively, of amortization of deferred financing costs related to the 6.25% Notes 2027. 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 August 31,November 30, 2022 and August 31,November 30, 2021 the average dollar amount of 6.25% Notes 2027 outstanding was $15.0 million and $15.0 million respectively.

On March 10, 2021, the Company issued $50.0 million in aggregate principal amount of our 4.375% fixed-rate Notes due in 2026 (the “4.375% Notes 2026”) for net proceeds of $49.0 million after deducting underwriting commissions of approximately $1.0 million. Offering costs incurred were approximately $0.2 million. Interest on the 4.375% Notes 2026 is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.375% per year, beginning August 28, 2021.year. The 4.375% Notes 2026 mature on February 28, 2026 and may be redeemed in whole or in part at any time on or after November 28, 2025 at par plus a “make-whole” premium, and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.2 million related to the 4.375% Notes 2026 have been capitalized and are being amortized over the term of the 4.375% Notes 2026.

 

On July 15, 2021, the Company issued an additional $125.0 million in aggregate principal amount of the Company’s 4.375% Notes 2026 (the “Additional 4.375% 2026 Notes”) for net proceeds for approximately $123.5 million, based on the public offering price of 101.00% of the aggregate principal amount of the Additional 4.375% 2026 Notes, after deducting the underwriting discount of $2.5 million and the offering expenses payable by the Company .Company. The Additional 4.375% 2026 Notes are treated as a single series with the existing 4.375% 2026 Notes under the indenture and had the same terms as the existing 4.375% 2026 Notes. The net proceeds from the offering were used to redeem all of the outstanding 6.25% 2025 Notes (as described above), and for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $2.7 million have been capitalized and are being amortized over the term of the additional 4.375% 2026 Notes.

As of August 31,November 30, 2022, the total 4.375% Notes 2026 outstanding was $175.0 million. The 4.375% Notes 2026 are not listed and are issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. As of February 28, 2022, there was $175.0 million outstanding of the 4.375% Notes 2026. The carrying amount of the amount outstanding of 4.375% Notes 2026 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.

For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $1.9 million and $1.2$1.9 million, respectively, of interest expense, $0.2 million and $0.1 million, respectively, of amortization of deferred financing costs and $0.05$0.07 million and $0.02$0.07 million, respectively, of amortization of premium on issuance of 4.375% Notes due 2026 (inclusive of the issuance of the Additional 4.375% 2026 Notes). Interest expense, amortization of deferred financing costs and amortization of premium on issuance of notes are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of 4.375% Notes 2026 outstanding was $175.0 million and $115.2$175.0 million, respectively.

For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $3.8$5.7 million and $1.7$3.6 million, respectively, of interest expense, $0.3$0.6 million and $0.2$0.3 million, respectively, of amortization of deferred financing costs and $0.1$0.2 million and $0.02$0.09 million, respectively, of amortization of premium on issuance of 4.375% Notes due 2026 (inclusive of the issuance of the Additional 4.375% 2026 Notes). Interest expense, amortization of deferred financing costs and amortization of premium on issuance of notes are reported as interest and debt financing expense on the consolidated statements of operations. During the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of 4.375% Notes 2026 outstanding was $175.0 million and $84.3$115.3 million, respectively.


 

On January 19, 2022, the Company issued $75.0 million in aggregate principal amount of our 4.35% fixed-rate Notes due in 2027 (the “4.35% Notes 2027”) for net proceeds of $73.0 million, based on the public offering price of 99.317% of the aggregate principal amount of the 4.35% Notes 2027, after deducting the underwriting commissions of approximately $1.5 million. Offering costs incurred were approximately $0.2 million. Interest on the 4.35% Notes 2027 is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.35% per year, beginning August 28, 2022.year. The 4.35% Notes 2027 mature on February 28, 2027 and may be redeemed in whole or in part at the Company’s option at any time prior to November 28, 2026, at par plus a “make-whole” premium, and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.7 million related to the 4.35% Notes 2027 have been capitalized and are being amortized over the term of the 4.35% Notes 2027.

As of August 31,November 30, 2022, the total 4.35% Notes 2027 outstanding was $75.0 million. The 4.35% Notes 2027 are not listed and are issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. As of February 28, 2022, there was $75.0 million outstanding. The carrying amount of the amount outstanding of 4.35% Notes 2027 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.

For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $0.8 million and $0.0 million, respectively, of interest expense and $0.1 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 4.35% Notes 2027. 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 August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of 4.35% Notes 2027 outstanding was $75.0 million and $0.0 million, respectively.

For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $1.6$2.4 million and $0.0 million, respectively, of interest expense and $0.2$0.3 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 4.35% Notes 2027. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of 4.35% Notes 2027 outstanding was $75.0 million and $0.0 million, respectively.

On April 27, 2022, the Company issued $87.5 million in aggregate principal amount of our 6.00% fixed-rate notes due 2027 (the “6.00% 2027 Notes”) for net proceeds of $84.8 million after deducting underwriting commissions of approximately $2.7 million. Offering costs incurred were approximately $0.1 million. On May 10, 2022, the underwriters partially exercised their option to purchase an additional $10.0 million in aggregate principal amount of the 6.00% 2027 Notes. Net proceeds to the Company were $9.7 million after deducting underwriting commissions of approximately $0.3 million. Interest on the 6.00% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.00% per year, beginning August 31, 2022.year. The 6.00% 2027 Notes mature on April 30, 2027 and commencing April 27, 2024, 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 $3.3 million related to the 6.00% 2027 Notes have been capitalized and are being amortized over the term of the 6.00% 2027 Notes. The 6.00% 2027 Notes are listed on the NYSE under the trading symbol “SAT” with a par value of $25.00 per share.note.

 

On August 15, 2022, the Company issued an additional $8.0 million in aggregate principal amount of the 6.00% 2027 Notes (the “Additional 6.00% 2027 Notes”) for net proceeds of $7.8 million, based on the public offering price of 97.80% of the aggregate principal amount of the 6.00% 2027 Notes. The Additional 6.00% 2027 Notes are treated as a single series with the existing 6.00% 2027 Notes under the indenture and had the same terms as the existing 6.00% 2027 Notes. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Additional offering costs incurred were approximately $0.03 million. Additional financing costs of $0.03 million related to the 6.00% 2027 Notes have been capitalized and are being amortized over the term of the 6.00% 2027 Notes.

As of August 31,November 30, 2022, the carrying amount and fair value of the 6.00% 2027 Notes was $105.5 million and $101.8$97.1 million, respectively. The fair value of the 6.00% 2027 Notes, which 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, 2022, the carrying amount and fair value of the 6.00% 2027 Notes was $0.0 million and $0.0 million, respectively.


For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $1.7$1.6 million and $0.0 million, respectively, of interest expense and $0.2 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 6.00% Notes 2027. 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 August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of 6.00% Notes 2027 outstanding was $99.0$105.5 million and $0.0 million, respectively.

For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we recorded $2.2$3.7 million and $0.0 million, respectively, of interest expense and $0.2$0.4 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 6.00% Notes 2027. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of 6.00% Notes 2027 outstanding was $43.8$82.5 million and $0.0 million, respectively.

On September 8, 2022, the Company issued $12.0 million in aggregate principal amount of our 7.00% fixed-rate notes due 2025 (the “7.00% 2025 Notes”) for net proceeds of $11.6 million after deducting customary fees and offering expenses of approximately $0.4 million. Interest on the 7.00% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.00% per year. The 7.00% 2025 Notes mature on September 8, 2025 and commencing September 8, 2024, 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 $0.05 million related to the 7.00% 2025 Notes have been capitalized and are being amortized over the term of the 7.00% 2025 Notes.

As of November 30, 2022, the carrying amount of the 7.00% 2025 Notes was $12.0 million. As of February 28, 2022, the carrying amount of the 7.00% 2025 Notes was $0.0 million.

For the three months ended November 30, 2022 and November 30, 2021, we recorded $0.2 million and $0.0 million, respectively, of interest expense and $0.03 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 7.00% Notes 2025. 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 November 30, 2022 and November 30, 2021, the average dollar amount of 7.00% Notes 2025 outstanding was $11.1 million and $0.0 million, respectively.


 

For the nine months ended November 30, 2022 and November 30, 2021, we recorded $0.2 million and $0.0 million, respectively, of interest expense and $0.03 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 7.00% Notes 2025. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the nine months ended November 30, 2022 and November 30, 2021, the average dollar amount of 7.00% Notes 2025 outstanding was $3.7 million and $0.0 million, respectively.

On October 27, 2022, the Company issued $40.0 million in aggregate principal amount of our 8.00% fixed-rate notes due 2027 (the “8.00% 2027 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.1 million. On November 10, 2022, the underwriters partially exercised their option to purchase an additional $6.0 million in aggregate principal amount of the 8.00% 2027 Notes. Net proceeds to the Company were $5.8 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 8.00% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.00% per year, beginning February 28, 2023. The 8.00% 2027 Notes mature on October 31, 2027 and commencing October 27, 2024, 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 $1.3 million related to the 8.00% 2027 Notes have been capitalized and are being amortized over the term of the 8.00% 2027 Notes. The 8.00% 2027 Notes are listed on the NYSE under the trading symbol “SAJ” with a par value of $25.00 per note.

As of November 30, 2022, the carrying amount and fair value of the 8.00% 2027 Notes was $46.0 million and $46.2 million, respectively. The fair value of the 8.00% 2027 Notes, which 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, 2022, the carrying amount and fair value of the 8.00% 2027 Notes was $0.0 million and $0.0 million, respectively.

For the three months ended November 30, 2022 and November 30, 2021, we recorded $0.3 million and $0.0 million, respectively, of interest expense and $0.03 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 8.00% Notes 2027. 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 November 30, 2022 and November 30, 2021, the average dollar amount of 8.00% Notes 2027 outstanding was $16.9 million and $0.0 million, respectively.

For the nine months ended November 30, 2022 and November 30, 2021, we recorded $0.3 million and $0.0 million, respectively, of interest expense and $0.03 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 8.00% Notes 2027. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the nine months ended November 30, 2022 and November 30, 2021, the average dollar amount of 8.00% Notes 2027 outstanding was $5.6 million and $0.0 million, respectively.


SENIOR SECURITIES

(dollar amounts in thousands, except per share data)

Class and Year (1)(2) Total Amount
Outstanding
Exclusive of
Treasury
Securities(3)		 Asset
Coverage per
Unit(4)		 Involuntary
Liquidating
Preference per
Share(5)		 Average
Market
Value per
Share(6)		  Total Amount
Outstanding
Exclusive of
Treasury
Securities(3)		  Asset
Coverage per
Unit(4)		  Involuntary
Liquidating
Preference per
Share(5)		  Average
Market
Value per
Share(6)		 
 (in thousands)  (in thousands)
Credit Facility with Encina Lender Finance, LLC                  
Fiscal year 2023 (as of August 31, 2022) $25,000  $1,842          -   N/A 
Fiscal year 2023 (as of November 30, 2022) $25,000  $1,732         -   N/A 
Fiscal year 2022 (as of February 28, 2022) $12,500  $2,093   -   N/A  $12,500  $2,093   -   N/A 
Credit Facility with Madison Capital Funding(14)                                
Fiscal year 2021 (as of February 28, 2021) $-  $3,471   -   N/A  $-  $3,471   -   N/A 
Fiscal year 2020 (as of February 29, 2020) $-  $6,071   -   N/A  $-  $6,071   -   N/A 
Fiscal year 2019 (as of February 28, 2019) $-  $2,345   -   N/A  $-  $2,345   -   N/A 
Fiscal year 2018 (as of February 28, 2018) $-  $2,930   -   N/A  $-  $2,930   -   N/A 
Fiscal year 2017 (as of February 28, 2017) $-  $2,710   -   N/A  $-  $2,710   -   N/A 
Fiscal year 2016 (as of February 29, 2016) $-  $3,025   -   N/A  $-  $3,025   -   N/A 
Fiscal year 2015 (as of February 28, 2015) $9,600  $3,117   -   N/A  $9,600  $3,117   -   N/A 
Fiscal year 2014 (as of February 28, 2014) $-  $3,348   -   N/A  $-  $3,348   -   N/A 
Fiscal year 2013 (as of February 28, 2013) $24,300  $5,421   -   N/A  $24,300  $5,421   -   N/A 
Fiscal year 2012 (as of February 29, 2012) $20,000  $5,834   -   N/A  $20,000  $5,834   -   N/A 
Fiscal year 2011 (as of February 28, 2011) $4,500  $20,077   -   N/A  $4,500  $20,077   -   N/A 
Fiscal year 2010 (as of February 28, 2010) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2009 (as of February 28, 2009) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2008 (as of February 29, 2008) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2007 (as of February 28, 2007) $-  $-   -   N/A  $-  $-   -   N/A 
7.50% Notes due 2020(7)                                
Fiscal year 2017 (as of February 28, 2017) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2016 (as of February 29, 2016) $61,793  $3,025   -  $25.24(8) $61,793  $3,025   -  $25.24(8)
Fiscal year 2015 (as of February 28, 2015) $48,300  $3,117   -  $25.46(8) $48,300  $3,117   -  $ 25.46(8)
Fiscal year 2014 (as of February 28, 2014) $48,300  $3,348   -  $25.18(8) $48,300  $3,348   -  $25.18(8)
Fiscal year 2013 (as of February 28, 2013) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2012 (as of February 29, 2012) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2011 (as of February 28, 2011) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2010 (as of February 28, 2010) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2009 (as of February 28, 2009) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2008 (as of February 29, 2008) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2007 (as of February 28, 2007) $-  $-   -   N/A  $-  $-   -   N/A 
6.75% Notes due 2023(9)                                
Fiscal year 2020 (as of February 29, 2020) $-  $-   -   N/A  $-  $-   -   N/A 
Fiscal year 2019 (as of February 28, 2019) $74,451  $2,345   -  $25.74(10) $74,451  $2,345   -  $ 25.74(10)
Fiscal year 2018 (as of February 28, 2018) $74,451  $2,930   -  $26.05(10) $74,451  $2,930   -  $26.05(10)
Fiscal year 2017 (as of February 28, 2017) $74,451  $2,710   -  $25.89(10) $74,451  $2,710   -  $ 25.89(10)
6.25% Notes due 2025(13)                                
Fiscal year 2022 (as of February 28, 2022)  -   -   -   N/A   -   -   -   N/A 
Fiscal year 2021 (as of February 28, 2021) $60,000  $3,471   -  $24.24(11) $60,000  $3,471   -  $ 24.24(11)
Fiscal year 2020 (as of February 29, 2020) $60,000  $6,071   -  $25.75(11) $60,000  $6,071   -  $ 25.75(11)
Fiscal year 2019 (as of February 28, 2019) $60,000  $2,345   -  $24.97(11) $60,000  $2,345   -  $ 24.97(11)
7.00% Notes due 2025                
Fiscal year 2023 (as of November 30, 2022) $12,000  $1,732      $25.00(12)
7.25% Notes due 2025(16)                                
Fiscal year 2023 (as of August 31, 2022) $-  $-   -   N/A 
Fiscal year 2023 (as of November 30, 2022) $-  $-   -   N/A 
Fiscal year 2022 (as of February 28, 2022) $43,125  $2,093   -  $25.46(11) $43,125  $2,093   -  $ 25.46(11)
Fiscal year 2021 (as of February 28, 2021) $43,125  $3,471   -  $25.77(11) $43,125  $3,471   -  $25.77(11)
7.75% Notes due 2025                                
Fiscal year 2023 (as of August 31, 2022) $5,000  $1,842   -  $25.00(12)
Fiscal year 2023 (as of November 30, 2022) $5,000  $1,732   -  $ 25.00(12)
Fiscal year 2022 (as of February 28, 2022) $5,000  $2,093   -  $25.00(12) $5,000  $2,093   -  $ 25.00(12)
Fiscal year 2021 (as of February 28, 2021) $5,000  $3,471   -  $25.00(12) $5,000  $3,471   -  $ 25.00(12)
4.375% Notes due 2026                                
Fiscal year 2023 (as of August 31, 2022) $175,000  $1,842   -  $25.00(12)
Fiscal year 2023 (as of November 30, 2022) $175,000  $1,732   -  $ 25.00(12)
Fiscal year 2022 (as of February 28, 2022) $175,000  $2,093   -  $25.00(12) $175,000  $2,093   -  $ 25.00(12)
4.35% Notes due 2027                                
Fiscal year 2023 (as of August 31, 2022) $75,000  $1,842   -  $25.00(12)
Fiscal year 2023 (as of November 30, 2022) $75,000  $1,732   -  $ 25.00(12)
Fiscal year 2022 (as of February 28, 2022) $75,000  $2,093   -  $25.00(12) $75,000  $2,093   -  $ 25.00(12)
6.25% Notes due 2027                                
Fiscal year 2023 (as of August 31, 2022) $15,000  $1,842   -  $25.00(12)
Fiscal year 2023 (as of November 30, 2022) $15,000  $1,732   -  $ 25.00(12)
Fiscal year 2022 (as of February 28, 2022) $15,000  $2,093   -  $25.00(12) $15,000  $2,093   -  $ 25.00(12)
Fiscal year 2021 (as of February 28, 2021) $15,000  $3,471   -  $25.00(12) $15,000  $3,471   -  $ 25.00(12)
6.00% Notes due 2027                
Fiscal year 2023 (as of August 31, 2022) $105,500  $1,842      $24.12(15)
6.00% Notes due 2027(17)                
Fiscal year 2023 (as of November 30, 2022) $105,500  $1,732      $ 24.20(15)
8.00% Notes due 2027(17)                
Fiscal year 2023 (as of November 30, 2022) $46,000  $1,732      $24.94(17)


 

(1)We have excluded our SBA-guaranteed debentures from this table because the SEC has granted us exemptive relief that permits us to exclude such debentures from the definition of senior securities in the 150% asset coverage ratio we are required to maintain under the 1940 Act.


(2)This table does not include the senior securities of our predecessor entity, GSC Investment Corp., relating to a revolving securitized credit facility with Deutsche Bank, in light of the fact that the Company was under different management during the time that such credit facility was outstanding.

 

(3)Total amount of senior securities outstanding at the end of the period presented.

(4)Asset coverage per unit is the ratio of our total assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness, calculated on a total basis.

(5)The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. The “—” indicates information which the Securities and Exchange Commission expressly does not require to be disclosed for certain types of senior securities.

(6)Not applicable for credit facility because not registered for public trading.

(7)On January 13, 2017, the Company redeemed in full its 2020 Notes. The Company used a portion of the net proceeds from the 2023 Notes offering, which was completed in December 2016, to redeem the 2020 Notes in full.

(8)Based on the average daily trading price of the 2020 Notes on the NYSE.

(9)On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.45 million, respectively, in aggregate principal amount of the $74.45 million in aggregate principal amount of issued and outstanding 2023 Notes.

(10)Based on the average daily trading price of the 2023 Notes on the NYSE.

(11)Based on the average daily trading price of the 2025 Notes on the NYSE.

(12)The carrying value of this unlisted security approximates its fair value, based on a waterfall analysis showing adequate collateral coverage.

(13)On August 31, 2021, the Company redeemed $60.0 million in aggregate principal amount of the issued and outstanding 6.25% 2025 Notes. The Company used a portion of the net proceeds from the 4.375% 2026 Notes offering, which was completed in July 2021, to redeem the 6.25% 2025 Notes in full.

(14)On October 4, 2021, the Company repaid all remaining amounts outstanding under the Madison Credit Facility and the credit agreement relating to the Madison Credit Facility was terminated.

(15)Based on the average daily trading price of the 2027 Notes on the NYSE.

(16)On July 14, 2022, the Company redeemed $43.1 million in aggregate principal amount of the issued and outstanding 7.25% 2025 Notes.

(17)Based on the average daily trading price of the 2027 Notes on the NYSE.


Note 9. Commitments and Contingencies

Contractual Obligations

The following table shows our payment obligations for repayment of debt and other contractual obligations at August 31,November 30, 2022:

     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 $25,000  $-  $25,000  $-  $- 
SBA debentures  233,660   -   15,000   33,660   185,000 
7.75% 2025 Notes  5,000   -   5,000   -   - 
4.375% 2026 Notes  175,000   -   -   175,000   - 
4.35% 2027 Notes  75,000   -   -   75,000   - 
6.25% 2027 Notes  15,000   -   -   -   15,000 
6.00% 2027 Notes  105,500   -   -   105,500   - 
Total Long-Term Debt Obligations $634,160  $-  $45,000  $389,160  $200,000 

Off-Balance Sheet Arrangements

     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 $25,000  $                -  $25,000  $-  $- 
SBA debentures  242,660   -   15,000   52,660   175,000 
7.00% 2025 Notes  12,000   -   12,000   -   - 
7.75% 2025 Notes  5,000   -   5,000   -   - 
4.375% 2026 Notes  175,000   -   -   175,000   - 
4.35% 2027 Notes  75,000   -   -   75,000   - 
6.25% 2027 Notes  15,000   -   -   -   15,000 
6.00% 2027 Notes  105,500   -   -   105,500   - 
8.00% 2027 Notes  46,000   -   -   46,000   - 
Total Long-Term Debt Obligations $701,160  $-  $57,000  $454,160  $190,000 


Off-Balance Sheet Arrangements

As of August 31,November 30, 2022 and February 28, 2022, the Company’s off-balance sheet arrangements consisted of $90.7$77.5 million and $83.4$88.4 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 August 31,November 30, 2022 and February 28, 2022 is shown in the table below (dollars in thousands):

 

  August 31,
2022		  February 28,
2022		 
At Company’s discretion      
ActiveProspect, Inc. $10,000  $- 
Artemis Wax  3,000   3,700 
Ascend Software LLC  5,000   5,000 
Axero Holdings  -   3,000 
Davisware  2,000   2,000 
Granite Comfort  5,000   - 
JDXpert  5,000   - 
Lee’s Famous Recipe Chicken  4,000   10,000 
Netreo Holdings, LLC  -   4,000 
Pepper Palace  3,000   3,000 
Procrement Partners  -   2,800 
Saratoga Senior Loan Fund I JV LLC  15,606   17,500 
Sceptre Hospitality Resources  250   1,000 
Book4Time, Inc.  -   2,000 
Total  52,856   54,000 
         
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required        
Ascend Software LLC  4,200   6,500 
ARC Health  8,500   - 
Axero Holdings  -   2,000 
Axero Holdings - Revolver  500   500 
Davisware, LLC  1,000   1,000 
Exigo - DDTL  4,167   - 
Exigo - Revolver  833   - 
GDS Holdings US, Inc.  1,036   2,786 
Granite Comfort  5,000   - 
GoReact  500   2,500 
JDXpert  1,000   - 
Madison Logic - Revolver  1,084   1,084 
New England Dental Partners  4,500   4,500 
Pepper Palace - DDTL  2,000   2,000 
Pepper Palace - Revolver  2,500   2,500 
Zollege  1,000   1,000 
Lee’s Famous Recipe Chicken  -   3,000 
   37,820   29,370 
Total $90,676  $83,370 
  November 30,
2022		  February 28,
2022		 
At Company’s discretion      
ActiveProspect, Inc. $10,000  $- 
Artemis Wax Corp.  8,500   3,700 
Ascend Software, LLC  5,000   5,000 
Axero Holdings, LLC  -   3,000 
Davisware, LLC  2,000   2,000 
Granite Comfort, LP  5,000   - 
JDXpert  5,000   - 
LFR Chicken LLC  4,000   10,000 
Netreo Holdings, LLC  2,350   4,000 
Pepper Palace, Inc.  3,000   3,000 
Procurement Partners, LLC  -   2,800 
Saratoga Senior Loan Fund I JV, LLC  8,548   17,500 
Sceptre Hospitality Resources, LLC  5,000   1,000 
Book4Time, Inc.  -   2,000 
Total $58,398  $54,000 
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required     
Ascend Software, LLC $4,200  $6,500 
ARC Health OpCo LLC  773   - 
Axero Holdings, LLC  -   2,000 
Axero Holdings, LLC - Revolver  500   500 
Davisware, LLC  -   1,000 
Exigo, LLC - Delayed Draw Term Loan  4,167   - 
Exigo, LLC - Revolver  833   - 
GDS Software Holdings, LLC  -   2,786 
Granite Comfort, LP  500   - 
GoReact  500   2,500 
JDXpert  1,000   - 
Madison Logic, Inc. - Revolver  1,084   1,084 
New England Dental Partners  -   4,500 
Pepper Palace, Inc.– Delayed Draw Term Loan  2,000   2,000 
Pepper Palace, Inc. - Revolver  2,500   2,500 
Zollege PBC  1,000   1,000 
LFR Chicken LLC  -   3,000 
   19,057   29,370 
Total $77,455  $83,370 

The Company believes its assets will provide adequate coverage to satisfy these unfunded commitments. As of August 31,November 30, 2022, the Company had cash and cash equivalents of $12.6$47.0 million and $25.0 million in available borrowings under the Encina Credit Facility.


Note 10. Directors Fees

The independent directors each receive an annual fee of $70,000. They also receive $3,000 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each board meeting and receive $1,500 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each committee meeting. In addition, the chairman of the Audit Committee receives an annual fee of $12,500 and the chairman of each other committee receives an annual fee of $6,000 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 valueNAV 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 Section 2(a)(19) of the 1940 Act). For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, we incurred $0.1 million and $0.1$0.07 million for directors’ fees and expenses, respectively. For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, we incurred $0.2$0.3 million and $0.2$0.3 million for directors’ fees and expenses, respectively. As of August 31,November 30, 2022 and February 28, 2022, $0.1 million and $0.07 million in directors’ fees and expenses were accrued and unpaid, respectively. As of August 31,November 30, 2022, we had not issued any common stock to our directors as compensation for their services.


Note 11. 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 a one-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 (the “Share Repurchase Plan”). On October 7, 2015, our board of directors extended the 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, our board of directors extended the 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, January 8, 2019 and January 7, 2020, our board of directors extended the Share Repurchase Plan for another year to October 15, 2018, January 15, 2020 and January 15, 2021, respectively, each time leaving the number of shares unchanged at 600,000 shares of its common stock. On May 4, 2020, our board of directors increased the Share Repurchase Plan to 1.3 million shares of common stock. On January 5, 2021, our board of directors extended the Share Repurchase Plan for another year to January 15, 2022, leaving the number of shares unchanged at 1.3 million shares of common stock. On January 4, 2022, our board of directors extended the Shares Repurchase Plan for another year to January 15, 2023, leaving the number of shares unchanged at 1.3 million shares of common stock. As of August 31,November 30, 2022, the Company purchased 803,962898,033 shares of common stock, at the average price of $21.47$21.65 for approximately $17.3$19.5 million pursuant to the Share Repurchase Plan. During the three months ended August 31,November 30, 2022 the Company purchased 153,35094,071 shares of common stock, at the average price of $24.04$23.17 for approximately $3.7$2.1 million pursuant to the Share Repurchase Plan. During the sixnine months ended August 31,November 30, 2022 the Company purchased 295,527389,598 shares of common stock, at the average price of $25.11$24.64 for approximately $7.4$9.6 million pursuant to the Share 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. were also added to the agreement. On July 11, 2019, the amount of the common stock to be offered 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. This agreement was terminated as of July 29, 2021, and as of that date, the Company had sold 3,922,018 shares for gross proceeds of $97.1 million at an average price of $24.77 for aggregate net proceeds of $95.9 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 a 30-day option to purchase up to an additional 172,500 shares of its common stock, which was not exercised. 

On July 30, 2021, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc. and Compass Point Research and Trading, LLC (collectively the “Agents”), through which we may offer for sale, from time to time, up to $150.0 million of our common stock through the Agents, or to them, as principal for their account. As of August 31,November 30, 2022, the Company sold 4,840,361 shares for gross proceeds of $124.0 million at an average price of $25.61 for aggregate net proceeds of $122.4 million (net of transaction costs). During the three and sixnine months ended August 31,November 30, 2022, there were no shares sold pursuant to the equity distribution agreement with the Agents.


 

The Company adopted Rule 3-04/Rule 8-03(a)(5) under Regulation S-X (Note 2). Pursuant to the regulation,Regulation S-X, the Company has presented a reconciliation of the changes in each significant caption of stockholders’ equity as shown in the tables below:

 

      Capital Total    
 Common Stock  in Excess  Distributable     Common Stock Capital
in Excess		 Total
Distributable		    
 Shares  Amount  of Par Value  

Earnings (Loss)

  Net Assets  Shares Amount of Par Value Earnings (Loss) Net Assets 
Balance at February 28, 2021  11,161,416  $11,161  $304,874,957  $(700,348) $304,185,770   11,161,416  $11,161  $304,874,957  $(700,348) $304,185,770 
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   2,555,935   2,555,935   -   -   -   2,555,935   2,555,935 
Net realized gain (loss) from investments  -   -   -   1,910,141   1,910,141   -   -   -   1,910,141   1,910,141 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   16,812,577   16,812,577   -   -   -   16,812,577   16,812,577 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (230,144)  (230,144)  -   -   -   (230,144)  (230,144)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (4,799,405)  (4,799,405)  -   -   -   (4,799,405)  (4,799,405)
Capital Share Transactions:                                        
Proceeds from issuance of common stock  -   -   -   -   -   -   -   -   -   - 
Stock dividend distribution  38,580   39   914,063   -   914,102   38,580   39   914,063   -   914,102 
Repurchases of common stock  (40,000)  (40)  (1,003,380)  -   (1,003,420)  (40,000)  (40)  (1,003,380)  -   (1,003,420)
Repurchase fees  -   -   (800)  -   (800)  -   -   (800)  -   (800)
Offering costs  -   -   -   -   -   -   -   -   -   - 
Balance at May 31, 2021  11,159,995  $11,160  $304,784,840  $15,548,756  $320,344,756   11,159,995  $11,160  $304,784,840  $15,548,756  $320,344,756 
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   6,393,261   6,393,261   -   -   -   6,393,261   6,393,261 
Net realized gain (loss) from investments  -   -   -   1,501,597   1,501,597   -   -   -   1,501,597   1,501,597 
Income tax (provision) benefit from realized gain on investments  -   -   -   (448,883)  (448,883)  -   -   -   (448,883)  (448,883)
Realized losses on extinguishment of debt              (1,552,140)  (1,552,140)              (1,552,140)  (1,552,140)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   3,376,540   3,376,540   -   -   -   3,376,540   3,376,540 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (1,328,711)  (1,328,711)  -   -   -   (1,328,711)  (1,328,711)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (4,910,394)  (4,910,394)  -   -   -   (4,910,394)  (4,910,394)
Capital Share Transactions:                                        
Proceeds from issuance of common stock  5,441   6   157,034   -   157,040   5,441   6   157,034   -   157,040 
Stock dividend distribution  33,099   33   828,479   -   828,512   33,099   33   828,479   -   828,512 
Repurchases of common stock  (9,623)  (10)  (248,713)  -   (248,723)  (9,623)  (10)  (248,713)  -   (248,723)
Repurchase fees  -   -   (192)  -   (192)  -   -   (192)  -   (192)
Offering costs  -   -   (817)  -   (817)  -   -   (817)  -   (817)
Balance at August 31, 2021  11,188,912  $11,189  $305,520,631  $18,580,025  $324,111,845   11,188,912  $11,189  $305,520,631  $18,580,025  $324,111,845 
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   5,196,635   5,196,635   -   -   -   5,196,635   5,196,635 
Net realized gain (loss) from investments  -   -   -   9,916,925   9,916,925   -   -   -   9,916,925   9,916,925 
Income tax (provision) benefit from realized gain on investments  -   -   -   (2,447,173)  (2,447,173)  -   -   -   (2,447,173)  (2,447,173)
Realized losses on extinguishment of debt              (764,123)  (764,123)              (764,123)  (764,123)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (6,042,616)  (6,042,616)  -   -   -   (6,042,616)  (6,042,616)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   2,480,465   2,480,465   -   -   -   2,480,465   2,480,465 
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (5,889,329)  (5,889,329)  -   -   -   (5,889,329)  (5,889,329)
Capital Share Transactions:                                        
Proceeds from issuance of common stock  520,076   520   15,163,259   -   15,163,779   520,076   520   15,163,259   -   15,163,779 
Stock dividend distribution  38,016   38   1,017,625   -   1,017,663   38,016   38   1,017,625   -   1,017,663 
Repurchases of common stock  -   -   -   -   -   -   -   -   -   - 
Repurchase fees  -   -   -   -   -   -   -   -   -   - 
Offering costs  -   -   (142,326)  -   (142,326)  -   -   (142,326)  -   (142,326)
Balance at November 30, 2021  11,747,004  $11,747  $321,559,189  $21,030,809  $342,601,745   11,747,004  $11,747  $321,559,189  $21,030,809  $342,601,745 

 


 

      Capital Total    
 Common Stock  in Excess  Distributable     Common Stock  Capital
in Excess		  Total
Distributable		    
 Shares  Amount  of Par Value  

Earnings (Loss)

  Net Assets  Shares  Amount  of Par Value  Earnings (Loss)  Net Assets 
Increase (Decrease) from Operations:                               
Net investment income  -   -   -   5,796,910   5,796,910   -   -   -   5,796,910   5,796,910 
Net realized gain (loss) from investments  -   -   -   69,664   69,664   -   -   -   69,664   69,664 
Income tax (provision) benefit from realized gain on investments  -   -   -   9,612   9,612   -   -   -   9,612   9,612 
Realized losses on extinguishment of debt              (118,147)  (118,147)              (118,147)  (118,147)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   2,873,561   2,873,561   -   -   -   2,873,561   2,873,561 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (226,702)  (226,702)  -   -   -   (226,702)  (226,702)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (6,434,106)  (6,434,106)  -   -   -   (6,434,106)  (6,434,106)
Capital Share Transactions:                                        
Proceeds from issuance of common stock  392,826   392   11,513,992   -   11,514,383   392,826   392   11,513,992   -   11,514,383 
Stock dividend distribution  41,520   42   1,114,886   -   1,114,929   41,520   42   1,114,886   -   1,114,929 
Repurchases of common stock  (50,000)  (50)  (1,292,843)  -   (1,292,893)  (50,000)  (50)  (1,292,843)  -   (1,292,893)
Repurchase fees          (1,000)  -   (1,000)          (1,000)  -   (1,000)
Offering costs          (127,433)  -   (127,433)          (127,433)  -   (127,433)
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles  -   -   (4,704,545)  4,704,545   -   -   -   (4,704,545)  4,704,545   - 
Balance at February 28, 2022  12,131,350  $12,131  $328,062,246  $27,706,146  $355,780,523   12,131,350  $12,131  $328,062,246  $27,706,146  $355,780,523 
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   7,976,222   7,976,222   -   -   -   7,976,222   7,976,222 
Net realized gain (loss) from investments  -   -   -   162,509   162,509   -   -   -   162,509   162,509 
Income tax (provision) benefit from realized gain on investments  -   -   -   69,250   69,250   -   -   -   69,250   69,250 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (9,333,449)  (9,333,449)  -   -   -   (9,333,449)  (9,333,449)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (361,951)  (361,951)  -   -   -   (361,951)  (361,951)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (6,428,817)  (6,428,817)  -   -   -   (6,428,817)  (6,428,817)
Capital Share Transactions:                                        
Proceeds from issuance of common stock  -   -   -   -   -   -   -   -   -   - 
Stock dividend distribution  42,825   43   1,108,637   -   1,108,680   42,825   43   1,108,637   -   1,108,680 
Repurchases of common stock  (142,177)  (142)  (3,734,174)  -   (3,734,316)  (142,177)  (142)  (3,734,174)  -   (3,734,316)
Repurchase fees  -   -   (2,840)  -   (2,840)  -   -   (2,840)  -   (2,840)
Offering costs  -   -   -   -   -   -   -   -   -   - 
Balance at May 31, 2022  12,031,998  $12,032  $325,433,869  $19,789,910  $345,235,811   12,031,998  $12,032  $325,433,869  $19,789,910  $345,235,811 
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   7,698,014   7,698,014   -   -   -   7,698,014   7,698,014 
Net realized gain (loss) from investments  -   -   -   7,943,838   7,943,838   -   -   -   7,943,838   7,943,838 
Realized losses on extinguishment of debt  -   -   -   (1,204,809)  (1,204,809)  -   -   -   (1,204,809)  (1,204,809)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (13,258,456)  (13,258,456)  -   -   -   (13,258,456)  (13,258,456)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (230,154)  (230,154)  -   -   -   (230,154)  (230,154)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (6,369,981)  (6,369,981)  -   -   -   (6,369,981)  (6,369,981)
Capital Share Transactions:                                        
Stock dividend distribution  48,590   49   1,088,139   -   1,088,188   48,590   49   1,088,139   -   1,088,188 
Repurchases of common stock  (153,350)  (154)  (3,685,951)  -   (3,686,105)  (153,350)  (154)  (3,685,951)  -   (3,686,105)
Repurchase fees  -   -   (3,071)  -   (9,464)  -   -   (3,071)  -   (3,071)
Balance at August 31, 2022  11,927,238  $11,927  $322,832,986  $14,368,362  $337,213,275   11,927,238  $11,927  $322,832,986  $14,368,362  $337,213,275 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   9,877,437   9,887,437 
Net realized gain (loss) from investments  -   -   -   (740,434)  (740,434)
Income tax (provision) benefit from realized gain on investments  -   -   -   479,318   479,318 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (3,176,208)  (3,176,208)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (425,848)  (425,848)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (6,433,298)  (6,433,298)
Capital Share Transactions:                    
Stock dividend distribution  52,312   53   1,150,881   -   1,150,934 
Repurchases of common stock  (94,071)  (95)  (2,179,600)  -   (2,179,695)
Repurchase fees  -   -   (1,881)  -   (1,881)
Balance at November 30, 2022  11,885,479  $11,885  $321,802,386  $13,949,329  $335,763,600 


 

 

The Company adopted Rule 3-04/Rule 8-03(a)(5) under Regulation S-X (Note 2).  Pursuant to the regulation,Regulation S-X, the Company has presented a reconciliation of the changes in each significant caption of stockholders’ equity as shown in the tables below:

 

      Capital Total    
 Common Stock  in Excess  Distributable     Common Stock Capital
in Excess		 Total
Distributable		    
 Shares  Amount  of Par Value  Earnings (Loss)  Net Assets  Shares Amount of Par Value Earnings (Loss) Net Assets 
Balance at February 29, 2020  11,217,545  $11,218  $289,476,991  $14,798,644  $304,286,853   11,217,545  $11,218  $289,476,991  $14,798,644  $304,286,853 
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   9,018,314   9,018,314   -   -   -   9,018,314   9,018,314 
Net realized gain (loss) from investments  -   -   -   8,480   8,480   -   -   -   8,480   8,480 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (31,950,369)  (31,950,369)  -   -   -   (31,950,369)  (31,950,369)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   267,740   267,740   -   -   -   267,740   267,740 
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   -   -   -   -   -   -   - 
Capital Share Transactions:                                        
Proceeds from issuance of common stock  -   -   -   -   -   -   -   -   -   - 
Stock dividend distribution  -   -   -   -   -   -   -   -   -   - 
Repurchases of common stock  -   -   -   -   -   -   -   -   -   - 
Offering costs  -   -   -   -   -   -   -   -   -   - 
Balance at May 31, 2020  11,217,545  $11,218  $289,476,991  $(7,857,191) $281,631,018   11,217,545  $11,218  $289,476,991  $(7,857,191) $281,631,018 
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   5,334,713   5,334,713   -   -   -   5,334,713   5,334,713 
Net realized gain (loss) from investments  -   -   -   11,929   11,929   -   -   -   11,929   11,929 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   16,580,401   16,580,401   -   -   -   16,580,401   16,580,401 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (116,521)  (116,521)  -   -   -   (116,521)  (116,521)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net  -   -   -   (4,487,015)  (4,487,015)  -   -   -   (4,487,015)  (4,487,015)
Capital Share Transactions:                                        
Proceeds from issuance of common stock  -   -   -   -   -   -   -   -   -   - 
Stock dividend distribution  47,098   46   774,944   -   774,990   47,098   46   774,944   -   774,990 
Repurchases of common stock  (90,321)  (90)  (1,550,327)  -   (1,550,417)  (90,321)  (90)  (1,550,327)  -   (1,550,417)
Repurchase fees  -   -   (1,740)  -   (1,740)  -   -   (1,740)  -   (1,740)
Offering costs  -   -   -   -   -   -   -   -   -   - 
Balance at August 31, 2020  11,174,322  $11,174  $288,699,868  $9,466,316  $298,177,358   11,174,322  $11,174  $288,699,868  $9,466,316  $298,177,358 
Increase (Decrease) from Operations:                                        
Net investment income  -   -   -   4,471,102   4,471,102   -   -   -   4,471,102   4,471,102 
Net realized gain (loss) from investments  -   -   -   1,798   1,798   -   -   -   1,798   1,798 
Income tax (provision) benefit from realized gain on investments              (3,895,354)  (3,895,354)              (3,895,354)  (3,895,354)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   5,998,830   5,998,830   -   -   -   5,998,830   5,998,830 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (210,057)  (210,057)  -   -   -   (210,057)  (210,057)
Decrease from Shareholder Distributions:                                        
Distributions of investment income – net�� -   -   -   (4,581,469)  (4,581,469)  -   -   -   (4,581,469)  (4,581,469)
Capital Share Transactions:                                        
Proceeds from issuance of common stock  -   -   -   -   -   -   -   -   -   - 
Stock dividend distribution  45,706   46   805,883   -   805,929   45,706   46   805,883   -   805,929 
Repurchases of common stock  (50,000)  (50)  (914,194)  -   (914,244)  (50,000)  (50)  (914,194)  -   (914,244)
Repurchase fees  -   -   (1,003)  -   (1,003)  -   -   (1,003)  -   (1,003)
Offering costs  -   -   -   -   -   -   -   -   -   - 
Balance at November 30, 2020  11,170,028  $11,170  $288,590,554  $11,251,166  $299,852,890   11,170,028  $11,170  $288,590,554  $11,251,166  $299,852,890 

 


        Capital  Total    
  Common Stock  in Excess  Distributable    
  Shares  Amount  of Par Value  Earnings (Loss)  Net Assets 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   4,288,996   4,288,996 
Net realized gain (loss) from investments  -   -   -   (8,726,013)  (8,726,013)
Income tax (provision) benefit from realized gain on investments  -   -   -   -   - 
Realized losses on extinguishment of debt              (128,617)  (128,617)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   14,337,460   14,337,460 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (515,796)  (515,796)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (4,678,514)  (4,678,514)
Capital Share Transactions:                    
Proceeds from issuance of common stock  -   -   -   -   - 
Stock dividend distribution  41,388   41   900,124   -   900,165 
Repurchases of common stock  (50,000)  (50)  (1,143,748)  -   (1,143,798)
Repurchase fees  -   -   (1,003)  -   (1,003)
Offering costs  -   -   -   -   - 
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles  -   -   16,529,030   (16,529,030)  - 
Balance at February 28, 2021  11,161,416  $11,161  $304,874,957  $(700,348) $304,185,770 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   2,555,935   2,555,935 
Net realized gain (loss) from investments  -   -   -   1,910,141   1,910,141 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   16,812,577   16,812,577 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (230,144)  (230,144)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (4,799,405)  (4,799,405)
Capital Share Transactions:                    
Proceeds from issuance of common stock  -   -   -   -   - 
Stock dividend distribution  38,580   39   914,063   -   914,102 
Repurchases of common stock  (40,000)  (40)  (1,003,380)  -   (1,003,420)
Repurchase fees  -   -   (800)  -   (800)
Offering costs  -   -   -   -   - 
Balance at May 31, 2021  11,159,995  $11,160  $304,784,840  $15,548,756  $320,344,756 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   6,393,261   6,393,261 
Net realized gain (loss) from investments  -   -   -   1,501,597   1,501,597 
Income tax (provision) benefit from realized gain on investments  -   -   -   (448,883)  (448,883)
Realized losses on extinguishment of debt              (1,552,140)  (1,552,140)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   3,376,540   3,376,540 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (1,328,711)  (1,328,711)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (4,910,394)  (4,910,394)
Capital Share Transactions:                    
Proceeds from issuance of common stock  5,441   6   157,034   -   157,040 
Stock dividend distribution  33,099   33   828,479   -   828,512 
Repurchases of common stock  (9,623)  (10)  (248,713)  -   (248,723)
Repurchase fees  -   -   (192)  -   (192)
Offering costs  -   -   (817)  -   (817)
Balance at August 31, 2021  11,188,912  $11,189  $305,520,631  $18,580,025  $324,111,845 


        Capital  Total    
  Common Stock  in Excess  Distributable    
  Shares  Amount  of Par Value  Earnings (Loss)  Net Assets 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   5,196,635   5,196,635 
Net realized gain (loss) from investments  -   -   -   9,916,925   9,916,925 
Income tax (provision) benefit from realized gain on investments  -   -   -   (2,447,173)  (2,447,173)
Realized losses on extinguishment of debt              (764,123)  (764,123)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (6,042,616)  (6,042,616)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   2,480,465   2,480,465 
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (5,889,329)  (5,889,329)
Capital Share Transactions:                    
Proceeds from issuance of common stock  520,076   520   15,163,259   -   15,163,779 
Stock dividend distribution  38,016   38   1,017,625   -   1,017,663 
Repurchases of common stock  -   -   -   -   - 
Repurchase fees      -   -   -   - 
Offering costs  -   -   (142,326)  -   (142,326)
Balance at November 30, 2021  11,747,004  $11,747  $321,559,189  $21,030,809  $342,601,745 
Increase (Decrease) from Operations:                    
Net investment income              5,796,910   5,796,910 
Net realized gain (loss) from investments              69,664   69,664 
Income tax (provision) benefit from realized gain on investments              9,612   9,612 
Realized losses on extinguishment of debt              (118,147)  (118,147)
Net change in unrealized appreciation (depreciation) on investments              2,873,561   2,873,561 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments              (226,702)  (226,702)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net              (6,434,106)  (6,434,106)
Capital Share Transactions:                    
Proceeds from issuance of common stock  392,826   392   11,513,992       11,514,383 
Stock dividend distribution  41,520   42   1,114,886       1,114,929 
Repurchases of common stock  (50,000)  (50)  (1,292,843)      (1,292,893)
Repurchase fees          (1,000)      (1,000)
Offering costs          (127,433)      (127,433)
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles          (4,704,545)  4,704,545     
Balance at February 28, 2022  12,131,350  $12,131  $328,062,246  $27,706,146  $355,780,523 
Balance at February 28, 2018  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)
Balance at March 1, 2018  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 
Net realized gain (loss) from investments  -   -   -   212,008   212,008 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   643,205   643,205 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (940,546)  (940,546)
Decrease from Shareholder Distributions:                    
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 
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 


  For the Year Ended February 28, 2019 
        Capital
  Total
    
  Common Stock  in Excess
  Distributable
    
  Shares  Amount  of Par Value  Earnings (Loss)  Net Assets 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   5,144,228   5,144,228 
Net realized gain (loss) from investments  -   -   -   163   163 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (2,154,521)  (2,154,521)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   152,546   152,546 
Decrease from Shareholder Distributions:                    
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 
Stock dividend distribution  21,563   22   511,523   -   511,545 
Repurchases of common stock  -   -   -   -   - 
Offering costs  -   -   (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 
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		   

Total
Distributable

     
   

Shares

   Amount   of Par Value   

Earnings (Loss)

   

Net Assets

 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   4,288,996   4,288,996 
Net realized gain (loss) from investments  -   -   -   (8,726,013)  (8,726,013)
Income tax (provision) benefit from realized gain on investments  -   -   -   -   - 
Realized losses on extinguishment of debt              (128,617)  (128,617)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   14,337,460   14,337,460 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (515,796)  (515,796)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (4,678,514)  (4,678,514)
Capital Share Transactions:                    
Proceeds from issuance of common stock  -   -   -   -   - 
Stock dividend distribution  41,388   41   900,124   -   900,165 
Repurchases of common stock  (50,000)  (50)  (1,143,748)  -   (1,143,798)
Repurchase fees  -   -   (1,003)  -   (1,003)
Offering costs  -   -   -   -   - 
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles  -   -   16,529,030   (16,529,030)  - 
Balance at February 28, 2021  11,161,416  $11,161  $304,874,957  $(700,348) $304,185,770 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   2,555,935   2,555,935 
Net realized gain (loss) from investments  -   -   -   1,910,141   1,910,141 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   16,812,577   16,812,577 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (230,144)  (230,144)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (4,799,405)  (4,799,405)
Capital Share Transactions:                    
Proceeds from issuance of common stock  -   -   -   -   - 
Stock dividend distribution  38,580   39   914,063   -   914,102 
Repurchases of common stock  (40,000)  (40)  (1,003,380)  -   (1,003,420)
Repurchase fees  -   -   (800)  -   (800)
Offering costs  -   -   -   -   - 
Balance at May 31, 2021  11,159,995  $11,160  $304,784,840  $15,548,756  $320,344,756 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   6,393,261   6,393,261 
Net realized gain (loss) from investments  -   -   -   1,501,597   1,501,597 
Income tax (provision) benefit from realized gain on investments  -   -   -   (448,883)  (448,883)
Realized losses on extinguishment of debt              (1,552,140)  (1,552,140)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   3,376,540   3,376,540 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (1,328,711)  (1,328,711)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (4,910,394)  (4,910,394)
Capital Share Transactions:                    
Proceeds from issuance of common stock  5,441   6   157,034   -   157,040 
Stock dividend distribution  33,099   33   828,479   -   828,512 
Repurchases of common stock  (9,623)  (10)  (248,713)  -   (248,723)
Repurchase fees  -   -   (192)  -   (192)
Offering costs  -   -   (817)  -   (817)
Balance at August 31, 2021  11,188,912  $11,189  $305,520,631  $18,580,025  $324,111,845 


   

Common Stock

 

 

 

Capital
in Excess

 
  

Total
Distributable

     
   

Shares

   

Amount

   

of Par Value

   

Earnings (Loss)

   

Net Assets

 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   5,196,635   5,196,635 
Net realized gain (loss) from investments  -   -   -   9,916,925   9,916,925 
Income tax (provision) benefit from realized gain on investments  -   -   -   (2,447,173)  (2,447,173)
Realized losses on extinguishment of debt              (764,123)  (764,123)
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (6,042,616)  (6,042,616)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   2,480,465   2,480,465 
Decrease from Shareholder Distributions:                    
Distributions of investment income – net  -   -   -   (5,889,329)  (5,889,329)
Capital Share Transactions:                    
Proceeds from issuance of common stock  520,076   520   15,163,259   -   15,163,779 
Stock dividend distribution  38,016   38   1,017,625   -   1,017,663 
Repurchases of common stock  -   -   -   -   - 
Repurchase fees      -   -   -   - 
Offering costs  -   -   (142,326)  -   (142,326)
Balance at November 30, 2021  11,747,004  $11,747  $321,559,189  $21,030,809  $342,601,745 
Increase (Decrease) from Operations:                    
Net investment income              5,796,910   5,796,910 
Net realized gain (loss) from investments              69,664   69,664 
Income tax (provision) benefit from realized gain on investments              9,612   9,612 
Realized losses on extinguishment of debt              (118,147)  (118,147)
Net change in unrealized appreciation (depreciation) on investments              2,873,561   2,873,561 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments              (226,702)  (226,702)
Decrease from Shareholder Distributions:                    
Distributions of investment income – net              (6,434,106)  (6,434,106)
Capital Share Transactions:                    
Proceeds from issuance of common stock  392,826   392   11,513,992       11,514,383 
Stock dividend distribution  41,520   42   1,114,886       1,114,929 
Repurchases of common stock  (50,000)  (50)  (1,292,843)      (1,292,893)
Repurchase fees          (1,000)      (1,000)
Offering costs          (127,433)      (127,433)
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles          (4,704,545)  4,704,545     
Balance at February 28, 2022  12,131,350  $12,131  $328,062,246  $27,706,146  $355,780,523 


  For the Year Ended February 28, 2019 
  Common Stock  Capital
in Excess		  Total
Distributable		    
  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 
Cumulative effect of the adoption of ASC 606 (Note 2)  -   -   -   (65,300)  (65,300)
Balance at March 1, 2018  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 
Net realized gain (loss) from investments  -   -   -   212,008   212,008 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   643,205   643,205 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   (940,546)  (940,546)
Decrease from Shareholder Distributions:                    
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 
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 
Increase (Decrease) from Operations:                    
Net investment income  -   -   -   5,144,228   5,144,228 
Net realized gain (loss) from investments  -   -   -   163   163 
Net change in unrealized appreciation (depreciation) on investments  -   -   -   (2,154,521)  (2,154,521)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  -   -   -   152,546   152,546 
Decrease from Shareholder Distributions:                    
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 
Stock dividend distribution  21,563   22   511,523   -   511,545 
Repurchases of common stock  -   -   -   -   - 
Offering costs  -   -   (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 
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 


Note 12. 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 (decrease) in net assets resulting from operations per share for the three and sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021 (dollars in thousands except share and per share amounts):

 For the three months ended  For the six months ended  For the three months ended For the nine months ended 
Basic and Diluted August 31,
2022		  August 31,
2021		  August 31,
2022		  August 31,
2021		  November 30,
2022		 November 30,
2021		 November 30,
2022		 November 30,
2021		 
Net increase (decrease) in net assets resulting from operations $948  $7,942  $(539) $28,990  $6,014  $8,340  $5,475  $37,330 
Weighted average common shares outstanding  11,963,276   11,175,436   12,037,855   11,172,787   11,893,173   11,450,861   11,989,811   11,312,991 
Weighted average earnings (loss) per common share $0.08  $0.71  $(0.04) $2.59  $0.51  $0.73  $0.46  $3.30 

Note 13. Dividend

On November 15, 2022, the Company declared a dividend of $0.68 per share payable on January 4, 2023, to common stockholders of record on December 15, 2022. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $6.8 million in cash and 53,615 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 $24.26 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on December 20, 21, 22, 23, 27, 28, 29 and 30, 2022 and January 3 and 4, 2023.

 

Note 13. Dividend

On August 29, 2022, the Company declared a dividend of $0.54 per share payable on September 29, 2022, to common stockholders of record on September 14, 2022. Shareholders have 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 $5.3 million in cash and 52,313 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 $22.00 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on September 16, 19, 20, 21, 22, 23, 26, 27, 28 and 29, 2022.

 

The following table summarizes dividends declared for the sixnine months ended August 31,November 30, 2022 (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* 
November 15, 2022 December 15, 2022 January 4, 2023 $0.68 $8,081 
August 29, 2022 September 14, 2022 September 29, 2022 $0.54  $6,433  September 14, 2022 September 29, 2022 0.54 6,433 
May 26, 2022 June 14, 2022 June 29, 2022  0.53   6,370  June 14, 2022 June 29, 2022  0.53  6,370 
Total dividends declared     $1.07  $6,370      $1.75 $20,884 

 

*Total amount is calculated based on the number of shares outstanding at the date of record.

 

The following table summarizes dividends declared for the sixnine months ended August 31,November 30, 2021 (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* 
November 30, 2021 January 4, 2022 January 19, 2022 $0.53  $6,434 
August 26, 2021 September 14, 2021 September 28, 2021  0.52   5,889 
May 27, 2021 June 15, 2021 May 29, 2021 $0.44  $4,910  June 15, 2021 June 29, 2021  0.44   4,910 
March 22, 2021 April 8, 2021 April 22, 2021  0.43   4,799  April 8, 2021 April 22, 2021  0.43   4,799 
Total dividends declared     $0.87  $9,709  $1.92  $22,032 

 

**Total amount is calculated based on the number of shares outstanding at the date of record.

 


 

Note 14. Financial Highlights

The following is a schedule of financial highlights as of and for the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021:

Per share data August 31,
2022		  August 31,
2021		  November 30,
2022		  November 30,
2021		 
Net asset value at beginning of period $29.33  $27.25  $29.33  $27.25 
Net investment income(1)  1.30   0.80   2.13   1.25 
Net realized and unrealized gain and losses on investments(1)  (1.25)  1.93   (1.57)  2.25 
Realized losses on extinguishment of debt  (0.10)  (0.14)  (0.10)  (0.20)
Net increase in net assets resulting from operations  (0.05)  2.59   0.46   3.30 
Distributions declared from net investment income  (1.06)  (0.87)  (1.60)  (1.39)
Total distributions to stockholders  (1.06)  (0.87)  (1.60)  (1.39)
Issuance of common stock above net asset value (2)  -   -   -   - 
Repurchases of common stock(3)  0.10   0.01   0.15   0.01 
Dilution(4)  (0.05)  (0.01)  (0.09)  - 
Net asset value at end of period $28.27  $28.97  $28.25  $29.17 
Net assets at end of period $337,213,275  $324,111,845  $335,763,600  $342,601,745 
Shares outstanding at end of period  11,927,238   11,188,912   11,885,479   11,747,004 
Per share market value at end of period $24.28  $28.70  $26.37  $28.90 
Total return based on market value(5)(6)  (7.67)%  28.72%  2.74%  32.25%
Total return based on net asset value(5)(7)  0.69%  10.02%  2.98%  13.03%
Ratio/Supplemental data:                
Ratio of net investment income to average net assets(8)  8.61%  7.88%  9.90%  6.80%
Expenses:                
Ratios of Operating Expenses and Income Taxes to average net assets*(9)  6.68%  5.83%
Ratios of operating expenses and income taxes to average net assets*(9)  7.02%  6.19%
Ratio of incentive management fees to average net assets(5)  (0.38)%  2.30%  0.06%  3.00%
Ratio of interest and debt financing expenses to average net assets(9)  8.47%  5.97%  8.97%  5.90%
Ratio of total expenses and income taxes to average net assets*(8)  14.77%  14.10%  16.05%  15.09%
Portfolio turnover rate(5)(10)  11.83%  23.67%  17.77%  33.79%
Asset coverage ratio per unit(11)  1,842   2,361   1,732   2,367 
Average market value per unit                
Revolving Credit Facility(12)                       N/A     N/A    N/A    N/A 
SBA Debentures Payable(12)                       N/A    N/A    N/A    N/A 
7.00% Notes Payable 2025(12)   N/A    N/A 
6.25% Notes Payable 2025(13)                       N/A  $25.44    N/A    N/A 
7.25% Notes Payable 2025(14)                       N/A  $26.45    N/A  $26.32 
7.75% Notes Payable 2025(12)                       N/A   N/A    N/A    N/A 
4.375% Notes Payable(12)                       N/A   N/A 
4.375% Notes Payable 2026(12)   N/A   N/A 
4.35% Notes Payable 2027(12)  N/A   N/A 
6.25% Notes Payable 2027(12)  N/A   N/A   N/A   N/A 
6.00% Notes Payable 2027 $24.53   N/A  $24.20   N/A 
8.00% Notes Payable 2027 $24.94   N/A 

 

**Certain prior period amounts have been reclassified to conform to current period presentation.

(1)Per share amounts are calculated using the weighted average shares outstanding during the period.

(2)

The continuous issuance of common stock may cause an incremental increase in net asset valueNAV 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 valueNAV per share on each subscription closing date. The per share data was derived by computing (i) the sum of (A) the number of shares issued in connection with subscriptions and/or distribution reinvestment on each share transaction date multiplied by (B) the differences between the net proceeds per share and the net asset valueNAV per share on each share transaction date, divided by (ii) the total shares outstanding during the period.

(3)

Represents the anti-dilutive impact on the net asset valueNAV per share (“NAV”) of the Company due to the repurchase of common shares. See Note 11, Stockholders’ Equity.

(4)

Represents the dilutive effect of issuing common stock below net asset valueNAV 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 13, Dividend.

(5)Ratios are not annualized.

(6)

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.


 

(7)

Total investment return is calculated assuming a purchase of common shares at the current net asset valueNAV on the first day and a sale at the current net asset valueNAV 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.

(8)Ratios are annualized. Incentive management fees included within the ratio are not annualized.

(9)Ratios are annualized.

 

(10)Portfolio turnover rate is calculated using the lesser of year-to-date sales or year-to-date purchases over the average of the invested assets at fair value.

 

(11)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.

 

(12)The Revolving Credit Facility, SBA Debentures, 7.75% Notes Payable 2025, 4.375% Notes Payable 2026, 4.35% Notes Payable 2027, 7.00% Notes Payable 2025 and 6.25% Notes Payable 2027 are not registered for public trading.

 

(13)On August 31, 2021, the Company redeemed $60.0 million in aggregate principal amount of the issued and outstanding 6.25% 2025 Notes and, as a result of the full redemption, the 6.25% 2025 Notes are no longer listed on the NYSE.

(14)On July 14, 2022, the Company redeemed $43.1 million in aggregate principal amount of the $43.1 million in aggregate principal amount of issued and outstanding 7.25% 2025 Notes and are no longer listed on the NYSE.

Note 15. Subsequent Events

The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-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 July 9, 2020,December 13, 2022, the Company entered into the Notes Purchase Agreement (the “Notes Purchase Agreement”) governing the issuance of its 7.75% Notes due 2025issued $52.5 million in the aggregate principal amount of $5.0 million to an institutional investor (the “Purchaser”) in a private placement. Pursuant to the terms of the Notes Purchase Agreement, upon the mutual agreement of the Company and the Purchaser, the Company may issue additionalour 8.125% fixed-rate notes with modified pricing terms, in the aggregate, up to a maximum of $50.0 million in one or more private offerings. On January 28, 2021, the Company entered into the First Supplemental Notes Purchase Agreement (the “First Supplemental Agreement”) governing the issuance of its 6.25% Notes due 2027 in(the “8.125% 2027 Notes”) for net proceeds of $50.9 million after deducting underwriting commissions of approximately $1.6 million. Offering costs incurred were approximately $0.1 million. The Company has granted the aggregate principal amount of $10.0 millionunderwriters an option to the Purchaser in a private placement. On September 8, 2022, the Company entered into the Second Supplemental Notes Purchase Agreement (the “Second Supplemental Agreement”) governing the issuance of its 7.00% Notes due 2025 (the “7.00% 2025 Notes”) in the aggregate principal amount of $12.0 million to the Purchaser in a private placement. In addition, pursuant to the Second Supplement Agreement, upon the mutual agreement of the Company and the Purchaser, the Purchaser may purchase from the Company up to an additional $8.0$7.875 million in aggregate principal amount of the 7.00% 20258.125% 2027 Notes. Interest on the 8.125% 2027 Notes by Septemberis paid quarterly in arrears on February 28, May 31, August 31 and November 30, 2022, which did not occur.at a rate of 8.125% per year, beginning February 28, 2023.  The 7.00% 20258.125% 2027 Notes were deliveredmature on December 31, 2027 and paidcommencing December 13, 2024, may be redeemed in whole or in part at any time or from time to time at our option. We expect to use the net proceeds from this offering to make investments in middle-market companies (including investments made through our SBIC subsidiaries) in accordance with our investment objective and strategies and for on September 8, 2022. Upongeneral corporate purposes. Financing costs of $1.6 million related to the issuance8.125% 2027 Notes have been capitalized and are being amortized over the term of the 7.00% 20258.125% 2027 Notes. The 8.125% 2027 Notes are listed on the outstandingNYSE under the trading symbol “SAY” with a par value of $25.00 per note.

On December 21, 2022, the underwriters fully exercised their option to purchase an additional $7.875 million in aggregate principal amount of the Company’s unsecured notes held by8.125% 2027 Notes. Net proceeds to the Purchaser under the Notes Purchase Agreement, the First Supplemental Agreement and the Second Supplemental Agreement, collectively, is $27.0Company were $7.6 million after deducting underwriting commissions of approximately $0.2 million.

 

On September 29, 2022,January 9, 2023, our board of directors extended the Company announced that it received notification fromShare Repurchase Plan for another year to January 15, 2024, increasing the Small Business Administration (the “SBA”) that the Company’s application for a third Small Business Investment Company (“SBIC”) license has been approved. The new SBIC license will provide upnumber of shares to $1751.7 million in additional long-term capital in the formshares of SBA-guaranteed debentures, subject to the issuance of a leverage commitment by the SBA. Under current SBIC regulations, for two or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $350.0 million with at least $175.0 million in combined regulatory capital.stock.


 

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 Form 10-Q. In addition to historical information, the following discussion and other parts of this Quarterly Report contain forward-looking information that involves risks and uncertainties. Our actual results could differ materially from those anticipated by such forward-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 Form 10-K for the fiscal year ended February 28, 2022.

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 our forward-looking statements.

The forward-looking statements contained in this Quarterly Report on Form 10-Q involve risks and uncertainties, including statements as to:

●our future operating results and the continued impact of coronavirus (“COVID-19”) pandemic thereon;

●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 impact of geopolitical conditions, including the ongoing conflict between Ukraine and Russia and its impact on financial market volatility, global economic markets, and various sectors, industries and markets for commodities globally, such as oil and natural gas;

●the relative and absolute investment performance and operations of our Manager;

●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 operational and financial performance of our portfolio companies, including their ability to achieve our respective objectives as a result of the current COVID-19 pandemic and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business;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 and the impact of the COVID-19 pandemic thereon;

●the ability of our portfolio companies to achieve their objectives;


 

●our expected financings and investments;

●our regulatory structure and tax treatment, including our ability to operate as a business development company (“BDC”), or to operate our small business investment company (“SBIC”) subsidiaries, 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 and the impact of the COVID-19 pandemic thereon;

●the impact of interest rate volatility, including the decommissioning of LIBOR and the rising interest rate environment, on our results, particularly because we use leverage as part of our investment strategy;

●the impact of supply chain constraints and labor difficulties on our portfolio companies and the global economy;

●the elevated level of inflation, and its impact on our portfolio companies and on the industries in which we invest;

●the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to us or our Manager;

●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 Manager to attract and retain highly talented professionals; and

●the ability of our Manager to locate suitable investments for us and to monitor and effectively administer our investments and the impacts of the COVID-19 pandemic thereon.


 

The following statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:

●changes in laws and regulations, changes in political, economic, geopolitical or industry conditions, and changes in the interest rate environment, including with respect to the decommissioning of LIBOR and interest rate hikes by the U.S. Federal Reserve, or other conditions affecting the financial and capital markets, including with respect to changes resulting from or in response to, or potentially even the absence of changes as a result of, the impact of the COVID-19 pandemic;

●the length and duration of the COVID-19 pandemic in the United States as well as worldwide, and the magnitude of its impact and time required for economic recovery, including with respect to the impact of travel restrictions, business closures and other restrictions on the ability of the Manager’s investment professionals to conduct in-person diligence on, and otherwise monitor, existing and future investments;

●an economic downturn and the time period required for robust economic recovery therefrom, including from increasing inflation, a shifting interest rate environment, geopolitical events (including the war in Ukraine), and the ongoing impact of the COVID-19 pandemic, which may have a material impact on our portfolio companies’ results of operations and financial condition, which could lead to the loss of some or all of our investments in certain portfolio companies and have a material adverse effect on our results of operations and financial condition;

●a contraction of available credit, an inability or unwillingness of our lenders to fund their commitments to us and/or an inability to access capital markets or additional sources of liquidity, including as a result of the impact and duration of the COVID-19 pandemic, could have a material adverse effect on our results of operations and financial condition and impair our lending and investment activities;

●risks associated with possible disruption in our portfolio companies’ operations due to wars and other forms of conflict, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics; and

●the risks, uncertainties and other factors we identify in “Risk Factors” in our most recent Annual Report on Form 10-K under Part I, Item 1A, in our quarterly reports on Form 10-Q, including this  report,Quarterly Report on Form 10-Q, and in our other filings with the SEC that we make from time to time.

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 Form 10-Q on information available to us on the date of this Quarterly Report on Form 10-Q, and we assume no obligation to update any such forward-looking statements. Actual results could differ materially from those anticipated in our forward-looking statements, and future results could differ materially from historical performance. 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 Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-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 Form 10-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 intend to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

 

Corporate History

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 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 Madison 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 Madison 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 a one-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-ownedwholly owned subsidiary, Saratoga Investment Corp. SBIC, LP (“SBIC LP”), received an SBIC license from the Small Business Administration (“SBA”). On August 14, 2019, our wholly-ownedwholly owned subsidiary, Saratoga Investment Corp. SBIC II LP (“SBIC II LP”), also received an SBIC license from the SBA. On September 29, 2022, our wholly owned subsidiary, Saratoga Investment Corp. SBIC III LP (“SBIC III LP”), also received an SBIC license from the 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 New York Stock Exchange (“NYSE”) under the trading symbol “SAQ” with a par value of $25.00 per share.note. The 2020 Notes were redeemed in full on January 13, 2017 and are no longer listed on the NYSE.

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 (the “Share Repurchase Plan”). On October 7, 2015, our board of directors extended the Share Repurchase Plan for another year and increased the number of shares the Company was 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, our board of directors extended the Share Repurchase Plan for another year to October 15, 2017 and increased the number of shares the Company was 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, January 8, 2019 and January 7, 2020, our board of directors extended the Share Repurchase Plan for another year to October 15, 2018, January 15, 2020 and January 15, 2021, respectively, each time leaving the number of shares the Company was permitted to repurchase unchanged at 600,000 shares of its common stock. On May 4, 2020, our board of directors increased the Share Repurchase Plan to permit the Company to repurchase 1.3 million shares of its common stock. On January 5, 2021, our board of directors extended the Share Repurchase Plan for another year to January 15, 2022, leaving the number of shares the Company was permitted to repurchase unchanged at 1.3 million shares of common stock. On January 4, 2022, our board of directors extended the Shares Repurchase Plan for another year to January 15, 2023, leaving the number of shares the Company is permitted to repurchase unchanged at 1.3 million shares of common stock. As of August 31,November 30, 2022, the Company purchased 803,962898,033 shares of common stock, at the average price of $21.47$21.65 for approximately $17.3$19.5 million pursuant to the Share Repurchase Plan. During the three months ended August 31,November 30, 2022 the Company purchased 153,35094,071 shares of common stock, at the average price of $24.04$23.17 for approximately $3.7$2.1 million pursuant to the Share Repurchase Plan. During the sixnine months ended August 31,November 30, 2022 the Company purchased 295,527389,598 shares of common stock, at the average price of $25.11$24.64 for approximately $7.4$9.6 million pursuant to the Share Repurchase Plan.


 

On May 29, 2015, we entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. Inc. 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 At-the-Market (“ATM”) offering. Prior to the 2020 Notes being redeemed in full, the Company had sold 539,725 2022 Notes 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 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 partial exercise of the underwriters’ option to purchase an additional $9.8 million in aggregate principal amount of 2023 Notes within 30 days. The 2023 Notes were listed on the NYSE under the trading symbol “SAB” with a par value of $25.00 per share.note. On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.5 million, respectively, in aggregate principal amount of the $74.5 million in aggregate principal amount of the issued and outstanding 2023 Notes and are no longer listed on the NYSE.

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 added to the equity ATM program. On July 11, 2019, the amount of the common stock to be offered 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. This agreement was terminated as of July 29, 2021, and as of that date, the Company had sold 3,922,018 shares for gross proceeds of $97.1 million at an average price of $24.77 for aggregate net proceeds of $95.9 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 a 30-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 “6.25% 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 in aggregate principal amount of 6.25% 2025 Notes within 30 days. 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 6.25% 2025 Notes have been capitalized and were amortized over the term of the 6.25% 2025 Notes.

On February 5, 2019, the Company issued an additional $20.0 million in aggregate principal amount of the 6.25% 2025 Notes for net proceeds of $19.2 million after deducting underwriting commissions of approximately $0.6 million and discount of $0.2 million. The additional 6.25% 2025 Notes were treated as a single series with the existing 6.25% 2025 Notes under the indenture and had the same terms as the existing 6.25% 2025 Notes. 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 in aggregate principal amount of 6.25% 2025 Notes within 30 days. 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 6.25% 2025 Notes have been capitalized and were amortized over the term of the 6.25% 2025 Notes. On August 31, 2021, the 6.25% 2025 Notes were redeemed and are no longer listed on the NYSE.

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. A non-call period of January 2020 was also added. In addition to and as part of the refinancing, the Saratoga CLO was also 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 the Class F-R-2 Notes tranche and $7.5 million in aggregate principal amount of the Class G-R-2 Notes tranche at par. Concurrently, the existing $4.5 million of Class F notes were repaid.


 

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. SBIC II LP’s SBIC license provides up to $175.0 million in additional long-term capital in the form of SBA debentures.

On June 24, 2020, the Company issued $37.5 million in aggregate principal amount of our 7.25% fixed-rate notes due 2025 (the “7.25% 2025 Notes”) for net proceeds of $36.3 million after deducting underwriting commissions of approximately $1.2 million. Offering costs incurred were approximately $0.3 million. On July 6, 2020, the underwriters exercised their option in full to purchase an additional $5.625 million in aggregate principal amount of its 7.25% unsecured notes due 2025.2025 Notes. Net proceeds to the Company were $5.4 million after deducting underwriting commissions of approximately $0.2 million. 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 7.25% 2025 Notes have been capitalized and are beingwere amortized over the term of the 7.25% 2025 Notes. On July 14, 2022, the 7.25% 2025 Notes were redeemed and are no longer listed on the NYSE.

On July 9, 2020, the Company issued $5.0 million in aggregate principal amount of our 7.75% fixed-rate notes due in 2025 (the “7.75% Notes 2025 ”)Notes”) for net proceeds of $4.8 million after deducting underwriting commissions of approximately $0.2 million. Offering costs incurred were approximately $0.1 million. Interest on the 7.75% 2025 Notes 2025 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.75% per year, beginning August 31, 2020.year. The 7.75% 2025 Notes 2025 mature on July 9, 2025 and may be redeemed in whole or in part at any time or from time to time at our option, subject to a fee depending on the date of repayment. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 7.75% 2025 Notes 2025 have been capitalized and are being amortized over the term of the 7.75% Notes 2025.2025 Notes. As of August 31,November 30, 2022, the total 7.25%7.75% 2025 Notes outstanding was $5.0 million. The 7.75% 2025 Notes 2025 are not listed and hashave a par value of $25.00 per share.note.

On December 29, 2020, the Company issued $5.0 million in aggregate principal amount of our 6.25% fixed-rate notes due in 2027 (the “6.25% Notes 2027”). Offering costs incurred were approximately $0.1 million. Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year. The 6.25% Notes 2027 mature on December 29, 2027 and may be redeemed in whole or in part at any time or from time to time at our option on or after December 29, 2024. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.1 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the 6.25% Notes 2027. The 6.25% 2027 Notes are not listed and have a par value of $25.00 per share.

note.


On January 28, 2021, the Company issued $10.0 million in aggregate principal amount of our 6.25% fixed rate notes due in 2027 (the “Second 6.25% Notes 2027”) for net proceeds of $9.7 million after deducting underwriting commissions of approximately $0.3 million. Offering costs incurred were approximately $0.0 million. Interest on the Second 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year. The Second 6.25% Notes 2027 mature on January 28, 2027 and commencing January 28, 2023, 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 $0.3 million related to the Second 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Second 6.25% Notes. The Second 6.25% 2027 Notes are unlisted and have a par value of $25.00 per share.note.

On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. A non-call period ending February 2022 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. At August 31, 2021, the outstanding receivable of $2.6 million was paid in full.

On March 10, 2021, the Company issued $50.0 million in aggregate principal amount of our 4.375% fixed-rate Notes due in 2026 (the “4.375% Notes 2026”) for net proceeds of $49.0 million after deducting underwriting commissions of approximately $1.0 million. Offering costs incurred were approximately $0.2 million. Interest on the 4.375% Notes 2026 is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.375% per year, beginning August 28, 2021.year. The 4.375% Notes 2026 mature on February 28, 2026 and may be redeemed in whole or in part at any time on or after November 28, 2025 at par plus a “make-whole” premium, and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.2 million related to the 4.375% Notes 2026 have been capitalized and are being amortized over the term of the 4.375% Notes 2026.


On July 15, 2021, the Company issued an additional $125.0 million in aggregate principal amount of the Company’s 4.375% Notes 2026 (the “Additional 4.375% 2026 Notes”) for net proceeds for approximately $123.5 million, based on the public offering price of 101.00% of the aggregate principal amount of the Additional 4.375% 2026 Notes, after deducting the underwriting discount of $2.5 million and the offering expenses payable by the Company . The net proceeds from the offering were used to redeem all of the outstanding 6.25% 2025 Notes (as described above), and for general corporate purposes in accordance with our investment objective and strategies. The Additional 4.375% 2026 Notes were treated as a single series with the existing 4.375% 2026 Notes under the indenture and had the same terms as the existing 4.375% 2026 Notes.


On July 30, 2021, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc. and Compass Point Research and Trading, LLC (the “Agents”), through which we may offer for sale, from time to time, up to $150.0 million of our common stock through the Agents, or to them, as principal for their account. As of August 31,November 30, 2022, the Company sold 4,840,361 shares for gross proceeds of $124.0 million at an average price of $25.61 for aggregate net proceeds of $122.4 million (net of transaction costs). During the three and sixnine months ended August 31,November 30, 2022, there were no shares sold pursuant to the equity distribution agreement with the Agents.

On August 9, 2021, the Company exchanged its existing $17.9 million Class F-R-3 Notes for $8.5 million Class F-1-R-3 Notes and $9.4 million Class F-2-R-3 Notes at par. On August 11, 2021, the Company sold its Class F-1-R-3 Notes to third parties, resulting in a realized loss of $0.1 million.

The Company has formed a wholly owned special purpose entity, Saratoga Investment Funding II LLC, a Delaware limited liability company (“SIF II”), for the purpose of entering into a $50.0 million senior secured revolving credit facility with Encina Lender Finance, LLC (the “Lender”), supported by loans held by SIF II and pledged to the Lender under the credit facility (the “Encina Credit Facility). The Encina Credit Facility closed on October 4, 2021. During the first two years following the closing date, SIF II may request an increase in the commitment amount under the Encina Credit Facility to up to $75.0 million. The terms of the Encina Credit Facility require a minimum drawn amount of $12.5 million at all times during the first six months following the closing date, which increases to the greater of $25.0 million or 50% of the commitment amount in effect at any time thereafter. The term of the Encina Credit Facility is three years. Advances under the Encina Credit Facility bear interest at a floating rate per annum equal to LIBOR plus 4.0%, with LIBOR having a floor of 0.75%, with customary provisions related to the selection by the Lender and the Company of a replacement benchmark rate. Concurrently with the closing of the Encina Credit Facility, all remaining amounts outstanding on the Company’s existing revolving credit facility with Madison Capital Funding, LLC were repaid and the facility terminated.

On October 26, 2021, the Company and TJHA JV I LLC (“TJHA”) entered into a Limited Liability Company Agreement (the “LLC Agreement”) to co-manage Saratoga Senior Loan Fund I JV LLC (“SLF JV”). SLF JV is invested in Saratoga Investment Corp Senior Loan Fund 2021-12022-1 Ltd (“SLF 2021”2022”), which is a wholly owned subsidiary of SLF JV. SLF 20212022 was formed for the purpose of making investments in a diversified portfolio of broadly syndicated first lien and second lien term loans or bonds in the primary and secondary markets.

The Company and TJHA have equal voting interest on all material decisions with respect to SLF JV, including those involving its investment portfolio, and equal control of corporate governance. No management fee is charged to SLF JV as control and management of SLF JV is shared equally.

 

The Company and TJHA have committed to provide up to a combined $50.0 million of financing to SLF JV through cash contributions, with the Company providing $43.75 million and TJHA providing $6.25 million, resulting in an 87.5% and 12.5% ownership between the two parties. The financing is issued in the form of an unsecured note and equity. The unsecured note will pay a fixed rate of 10.0% per annum and is due and payable in full on June 15, 2023. As of August 31,November 30, 2022, the Company and TJHA’s investment in SLF JV consisted of an unsecured note of $14.1$17.6 million and $2.0million,$2.5 million, respectively; and membership interest of $14.1$17.6 million and $6.7$2.5 million, respectively.

 

As of August 31,November 30, 2022, the Company earned $0.7$1.1 million of interest income related to SLF JV, which is included in interest income.

 

SLF JV’s initial investment in SLF 2021 is2022 was in the form of an unsecured loan. The unsecured note will payloan paid a floating rate of LIBOR plus 7.00% per annum and iswas due and payable in full on June 9, 2023. AsThe unsecured loan was repaid in full on October 28, 2022, as part of August 31, 2022, SLF JV’s investment in SLF 2021 had an aggregate fair value of approximately $23.7 million.the CLO closing.

 

The Company has determined that SLF JV is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-ownedwholly owned investment company subsidiary. SLF JV is not a wholly-ownedwholly owned investment company subsidiary as the Company and TJHA each have an equal 50% voting interest in SLF JV and thus neither party has a controlling financial interest. Furthermore, ASC 810 concludes that in a joint venture where both members have equal decision makingdecision-making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate SLF JV.

 


 

 

On January 19, 2022, the Company issued $75.0 million in aggregate principal amount of our 4.35% fixed-rate Notes due in 2027 (the “4.35% Notes 2027”) for net proceeds of $73.0 million, based on the public offering price of 99.317% of the aggregate principal amount of the 4.35% Notes 2027, after deducting the underwriting commissions of approximately $1.5 million. Offering costs incurred were approximately $0.2 million. Interest on the 4.35% Notes 2027 is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.35% per year, beginning August 28, 2022. The 4.35% Notes 2027 mature on February 28, 2027 and may be redeemed in whole or in part at the Company’s option at any time prior to November 28, 2026, at par plus a “make-whole” premium, and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.7 million related to the 4.35% Notes 2027 have been capitalized and are being amortized over the term of the 4.35% Notes 2027.

On April 27, 2022, the Company issued $87.5 million in aggregate principal amount of our 6.00% fixed-rate notes due 2027 (the “6.00% 2027 Notes”) for net proceeds of $84.8 million after deducting underwriting commissions of approximately $2.7 million. Offering costs incurred were approximately $0.1 million. On May 10, 2022, the underwriters partially exercised their option to purchase an additional $10.0 million in aggregate principal amount of the 6.00% 2027 Notes. Net proceeds to the Company were $9.7 million after deducting underwriting commissions of approximately $0.3 million. Interest on the 6.00% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.00% per year, beginning August 31, 2022.year. The 6.00% 2027 Notes mature on April 30, 2027 and commencing April 27, 2024, 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 $3.3 million related to the 6.00% 2027 Notes have been capitalized and are being amortized over the term of the 6.00% 2027 Notes. The 6.00% 2027 Notes are listed on the NYSE under the trading symbol “SAT” with a par value of $25.00 per share.note.

On August 15, 2022, the Company issued an additional $8.0 million in aggregate principal amount of the 6.00% 2027 Notes (the “Additional 6.00% 2027 Notes”) for net proceeds of $7.8 million, based on the public offering price of 97.80% of the aggregate principal amount of the 6.00% 2027 Notes. The Additional 6.00% 2027 Notes 2027.are treated as a single series with the existing 6.00% 2027 Notes under the indenture and had the same terms as the existing 6.00% 2027 Notes. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Additional offering costs incurred were approximately $0.03 million. Additional financing costs of $0.03 million related to the 6.00% 2027 Notes have been capitalized and are being amortized over the term of the 6.00% 2027 Notes.

On September 8, 2022, the Company issued $12.0 million in aggregate principal amount of our 7.00% fixed-rate notes due 2025 (the “7.00% 2025 Notes”) for net proceeds of $11.6 million after deducting customary fees and offering expenses of approximately $0.4 million. Interest on the 7.00% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.00% per year. The 7.00% 2025 Notes mature on September 8, 2025 and commencing September 8, 2024, may be redeemed in whole or in part at any time or from time to time at our option. We expect to use the net proceeds from this offering to make investments in middle-market companies (including investments made through our SBIC subsidiaries) in accordance with our investment objective and strategies and for general corporate purposes. Financing costs of $0.05 million related to the 7.00% 2025 Notes have been capitalized and are being amortized over the term of the 7.00% 2025 Notes.

On September 29, 2022, our wholly owned subsidiary, Saratoga Investment Corp. SBIC III LP(“SBIC III LP”), also received an SBIC license from the SBA.

On October 27, 2022, the Company issued $40.0 million in aggregate principal amount of our 8.00% fixed-rate notes due 2027 (the “8.00% 2027 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.1 million. On November 10, 2022, the underwriters partially exercised their option to purchase an additional $6.0 million in aggregate principal amount of the 8.00% 2027 Notes. Net proceeds to the Company were $5.8 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 8.00% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.00% per year, beginning February 28, 2023. The 8.00% 2027 Notes mature on October 31, 2027 and commencing October 27, 2024, 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 $1.3 million related to the 8.00% 2027 Notes have been capitalized and are being amortized over the term of the 8.00% 2027 Notes. The 8.00% 2027 Notes are listed on the NYSE under the trading symbol “SAJ” with a par value of $25.00 per note.

On October 28, 2022, SLF 2022 issued $402.1 million of debt through the JV CLO trust. The 2022 JV CLO Notes were issued pursuant to the JV Indenture, with the Trustee. As part of the transaction, the Company purchased 87.50% of the Class E Notes from SLF 2022 with a par value of $12.25 million. As of November 30, 2022 and February 28, 2022, the fair value of these Class E Notes were $11.0 million and $0.0 million, respectively.


Recent COVID-19 Developments 

 

We have been closely monitoring, and will continue to monitor, the impact of the COVID-19 pandemic (including new variants of COVID-19) and its impact on all aspects of our business, including how it will impact our portfolio companies, employees, due diligence and underwriting processes, and financial markets. Given the continued fluidity of the pandemic, we cannot estimate the long-term impact of COVID-19 on our business, future results of operations, financial position or cash flows at this time. Further, the operational and financial performance of the portfolio companies in which we make investments may be significantly impacted by COVID-19, which may in turn impact the valuation of our investments. We believe our portfolio companies have taken, and continue to take, immediate actions to effectively and efficiently respond to the challenges posed by COVID-19 and related restrictions imposed by state and local governments and other private businesses, including developing liquidity plans supported by internal cash reserves, and shareholder support. The COVID-19 pandemic and preventative measures taken to contain or mitigate its spread have caused, and are continuing to cause, business shutdowns, cancellations of events and restrictions on travel, significant reductions in demand for certain goods and services, reductions in business activity and financial transactions, supply chain disruptions, labor difficulties and shortages, commodity inflation and elements of economic and financial market instability in the United States and globally. Such effects will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter.

 

Critical Accounting Policies and Use of Estimates

 

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 and estimates 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 Measurements 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 measurement 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 independent third-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. We use multiple techniques for determining fair value based on the nature of the investment and experience with those types of investments and specific portfolio companies. The selections of the valuation techniques and the inputs and assumptions used within those techniques often require subjective judgements and estimates. These techniques include market comparables, discounted cash flows and enterprise value waterfalls. Fair value is best expressed as a range of values from which the Company determines a single best estimate. The types of inputs and assumptions that may be considered in determining the range of values of our investments include the nature and realizable value of any collateral, the portfolio company’s ability to make payments, market yield trend analysis and volatility in future interest rates, call and put features, the markets in which the portfolio company does business, comparison to publicly traded companies, discounted cash flows 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 third-party independent valuation firm to value our investment in the subordinated notes of Saratoga CLO, and the Class F-2-R-3 Notestranche of the Saratoga CLO and the Class E Notes tranche of the SLF 2022 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 flows 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 market comparables for equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by Saratoga Investment Advisors and recommended to our board of directors. Specifically, we use Intex cash flows, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The cash flows use a set of inputs including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The inputs 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 the valuation for our investment in Saratoga CLO.

 

In December 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted a new rule providing a framework for fund valuation practices. New Rule 2a-5 under the 1940 Act (“Rule 2a-5”) establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit boards, subject to board oversight and certain other conditions, to designate certain parties to perform fair value determinations. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must determine the fair value of a security. The SEC also adopted new Rule 31a-4 under the 1940 Act (“Rule 31a-4”), which provides the recordkeeping requirements associated with fair value determinations. Finally, the SEC is rescinding previously issued guidance on related issues, including the role of the board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, and havehad a compliance date of September 8, 2022. While our board of directors has not elected to designate Saratoga Investment Advisors as the valuation designee, the Company has adopted certain revisions to its valuation policies and procedures in order comply with the applicable requirements of Rule 2a-5 and Rule 31a-4.

 


 

 

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 on non-accrual status when there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reserved when a loan is placed on non-accrual status. Interest payments received on non-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 a payment-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. A non-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 the Class F-R-2 and $7.5 million in aggregate principal amount of the Class G-R-2 notes tranches at par, with a coupon of 3M USD LIBOR plus 8.75% and 3M USD LIBOR plus 10.00%, respectively. As part of this refinancing, we also redeemed our existing $4.5 million in aggregate amount of the Class F notes tranche at par and the $20.0 million CLO 2013-1 Warehouse Loan was repaid.

  


On February 11, 2020, the Company entered into an unsecured loan agreement with Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd. (“CLO 2013-1 Warehouse 2”), a wholly owned subsidiary Saratoga CLO.

 

On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This fourth Saratoga CLO refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. The non-call period was extended to February 2022. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million of the CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. At August 31, 2021, the outstanding receivable of $2.6 million was repaid in full.


 

On August 9, 2021, the Company exchanged its existing $17.9 million Class F-R-3 Notes for $8.5 million Class F-1-R-3 Notes and $9.4 million Class F-2-R-3 Notes at par. On August 11, 2021, the Company sold its Class F-1-R-3 Notes to third parties, resulting in a realized loss of $0.1 million.

 

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 the 2013-1 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 the 2013-1 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 Topic 325-40, Investments-Other, Beneficial Interests in Securitized Financial Assets (“ASC 325-40”), 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/or re-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.

 


Expenses

 

Our primary operating expenses include the payment of investment advisory and management fees, professional fees, directors and officers insurance, fees paid to directors who are not “interested persons” (as defined in Section 2(a)(19) of the 1940 Act) of the Company (“independent directors”) and administrator expenses, including our allocable portion of our administrator’s overhead. Our investment advisory and management fees compensate our Manager 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 Manager 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 Manager 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 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 our pre-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 our pre-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 appropriately pro-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 our pre-incentive fee net investment income with respect to that portion of such pre-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%.

 

●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.

 


 

   

Recent Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The Company has agreements that have LIBOR as a reference rate with certain portfolio companies and under the Encina Credit Facility. Many of these agreements (including the credit agreements relating to the Encina Credit Facility) include an alternative successor rate or language for choosing an alternative successor rate when LIBOR reference is no longer considered to be appropriate. With respect to other agreements, the Company intends to work with its portfolio companies to modify agreements to choose an alternative successor rate. Contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. The standard is effective as of March 12, 2020 through December 31, 2022. Management does not believe this optional guidance has a material impact on the Company’s consolidated financial statements and disclosures.

Portfolio and Investment Activity

Investment Portfolio Overview

 August 31,
2022		 February 28,
2022		 November 30,
2022		 February 28,
2022		 
 ($ in millions) ($ in millions) 
Number of investments(1)  116   94  114 94 
Number of portfolio companies(2)  52   45  50 45 
Average investment per portfolio company(2) $17.7  $17.3  $18.9 $17.3 
Average investment size(1) $8.0  $8.4  $8.4 $8.4 
Weighted average maturity(3)  2.9 yrs   2.9 yrs  2.8 yrs 2.9 yrs 
Number of industries (5)  44   38  40 38 
Non-performing or delinquent investments (fair value) $9.7  $-  $9.7 $- 
Fixed rate debt (% of interest earning portfolio)(3) $16.7(2.0)% $16.9(2.5)% $17.0(2.0)% $16.9(2.5)%
Fixed rate debt (weighted average current coupon)(3)  11.4%  10.0% 11.4% 10.0%
Floating rate debt (% of interest earning portfolio)(3) $811.7(98.0)% $671.2(97.5)% $822.5(98.0)% $671.2(97.5)%
Floating rate debt (weighted average current spread over LIBOR)(3)(4)  6.0%  7.1% 6.3% 7.1%

 

(1)Excludes our investment in the subordinated notes of Saratoga CLO.

(2)

Excludes our investment in the subordinated notes of Saratoga CLO and Class F-R-3 Note tranche, as well as the unsecured notes and equity interests in the SLF JV.JV and the Class E Note tranche of the SLF 2022.

(3)

Excludes our investment in the subordinated notes of Saratoga CLO and equity interests, as well as the unsecured notes and equity interests in the SLF JV.JV and the Class E Note tranche of the SLF 2022.

(4)Calculation uses either 1-month or 3-month LIBOR, depending on the contractual terms, and after factoring in any existing LIBOR floors.

(5)

Our investment in the subordinated notes of Saratoga CLO and Class F-R-3 Note tranche, as well as the unsecured notes and equity interests in the SLF JV and the Class E note tranche of the SLF 2022 are included in Structured Finance Securities industry.

During the three months ended August 31,November 30, 2022, we invested $140.5$87.5 million in new orand existing portfolio companies and had $75.1$56.9 million in aggregate amount of exits and repayments resulting in net investment of $65.5$30.6 million for the period. During the three months ended August 31,November 30, 2021, we invested $133.9$58.6 million in new orand existing portfolio companies and had $152.7$66.4 million in aggregate amount of exits and repayments resulting in net repayments of $18.8$7.9 million for the period.

During the sixnine months ended August 31,November 30, 2022, we invested $237.7$345.0 million in new orand existing portfolio companies and had $85.1$162.1 million in aggregate amount of exits and repayments resulting in net investment of $152.6$183.0 million for the period. During the sixnine months ended August 31,November 30, 2021, we invested $235.2$293.8 million in new orand existing portfolio companies and had $149.8$216.2 million in aggregate amount of exits and repayments resulting in net investment of $85.4$77.5 million for the period.


Portfolio Composition

Our portfolio composition at August 31,November 30, 2022 and February 28, 2022 at fair value was as follows:

 August 31, 2022  February 28, 2022  November 30, 2022 February 28, 2022 
 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  83.0%  10.1%  77.3%  8.3% 81.9% 11.9% 77.3% 8.3%
Second lien term loans  2.5   7.9   5.4   11.1  2.4 7.2 5.4 11.1 
Unsecured term loans  1.8   9.8   1.9   9.7  2.1 9.8 1.9 9.7 
Structured finance securities  3.4   8.9   4.7   10.5  4.0 7.4 4.7 10.5 
Equity interests  9.3   -   10.7   -   9.6  -  10.7  - 
Total  100.0%  9.0%  100.0%  7.7%  100.0%  10.4%  100.0%  7.7%


 

At August 31,November 30, 2022, our investment in the subordinated notes of Saratoga CLO, a collateralized loan obligation fund, had a fair value of $23.4$19.4 million and constituted 2.5%2.0% of our portfolio. This investment constitutes a first loss position in a portfolio that, as of August 31,November 30, 2022 and February 28, 2022, was composed of $653.4$653.3 million and $660.2 million, respectively, in aggregate principal amount of primarily senior secured first lien term loans. In addition, as of August 31,November 30, 2022, we also own $9.4 million in aggregate principal of the F-2-R-3 Notes in the Saratoga CLO, which 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 Form 10-K for the fiscal year ended February 28, 2022).

 

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 August 31,November 30, 2022, $591.7$574.7 million or 98.0%96.9% of the Saratoga CLO portfolio investments in terms of market value had a CMR (as defined below) color rating of green or yellow. At February 28, 2022, $630.3 million or 98.7% of the Saratoga CLO portfolio investments in terms of market value had a CMR color rating of green or yellow and fourtwo Saratoga CLO portfolio investments were in default with a fair value of $2.8 million. For more information relating to the Saratoga CLO, see the audited financial statements for Saratoga in our Annual Report on Form 10-K for the fiscal year ended February 28, 2022.

 

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 August 31,November 30, 2022 and February 28, 2022 was as follows:

 

Saratoga Investment Corp.

 

 August 31, 2022  February 28, 2022  November 30, 2022  February 28, 2022 
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 $805,740   84.4% $690,672   84.5% $823,056   83.8% $690,672   84.5%
Yellow  36,704   3.8   10,593   1.3   34,067   3.5   10,593   1.3 
Red  -   0.0   -   0.0   -   0.0   -   0.0 
N/A(1)  112,220   11.8   116,302   14.2   124,911   12.7   116,302   14.2 
Total $954,664   100.0% $817,567   100.0% $982,034   100.0% $817,567   100.0%

 

 

(1)(1)Comprised of our investment in the subordinated notes of Saratoga CLO and equity interests.

 

The change in reserve from $0.0 million as of February 28, 2022 to $1.2 million as of August 31,November 30, 2022 was related to the non-accrual of interest income related to the Knowland Group.

 

The CMR distribution of Saratoga CLO investments at August 31,November 30, 2022 and February 28, 2022 was as follows:

 

Saratoga CLO   
  August 31, 2022  February 28, 2022 
Color Score Investments at Fair Value  Percentage of Total
Portfolio		  Investments at Fair Value  Percentage of Total
Portfolio		 
  ($ in thousands) 
Green $558,144   92.4% $595,324   93.2%
Yellow  33,580   5.6   34,983   5.5 
Red  12,307   2.0   8,622   1.3 
N/A(1)  -   0.0   34   0.0 
Total $604,031   100.0% $638,963   100.0%

Saratoga CLO

  November 30, 2022  February 28, 2022 
Color Score Investments
at
Fair Value		  Percentage
of Total
Portfolio		  Investments
at
Fair Value		  Percentage
of Total
Portfolio		 
  ($ in thousands) 
Green $544,170   91.7% $595,324   93.2%
Yellow  30,557   5.2   34,983   5.5 
Red  18,171   3.1   8,622   1.3 
N/A(1)  -   0.0   34   0.0 
Total $592,898   100.0% $638,963   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 August 31,November 30, 2022 and February 28, 2022:

 

Saratoga Investment Corp.   
  August 31, 2022  February 28, 2022 
  Investments
At Fair Value		  Percentage
of Total Portfolio		  Investments
At Fair Value		  Percentage
of Total Portfolio		 
  ($ in thousands) 
Healthcare Software $92,467   9.7% $90,126   11.0%
IT Services  83,506   8.7   80,804   9.9 
HVAC Services and Sales  64,701   6.8   29,976   3.7 
Education Software  61,262   6.4   33,656   4.1 
Consumer Services  58,657   6.1   38,234   4.7 
Real Estate Services  53,105   5.6   53,506   6.6 
Education Services  34,372   3.6   35,309   4.3 
Structured Finance Securities(1)  32,327   3.4   38,030   4.7 
Marketing Orchestration Software  28,544   3.0   28,777   3.5 
Specialty Food Retailer  26,992   2.8   34,013   4.2 
Sports Management  26,549   2.8   26,654   3.3 
Healthcare Services  26,169   2.7   42,054   5.1 
Talent Acquisition Software  25,940   2.7   19,652   2.4 
Direct Selling Software  25,936   2.7   -   0.0 
Financial Services  24,906   2.6   23,540   2.9 
Restaurant  24,808   2.6   15,686   1.9 
Hospitality/Hotel  21,833   2.3   19,925   2.4 
Mentoring Software  20,937   2.2   18,321   2.2 
Legal Software  20,930   2.2   7,425   0.9 
Investment Fund  20,799   2.2   25,140   3.1 
Marketing Services  17,200   1.8   17,327   2.1 
Payroll Services  15,423   1.6   17,000   2.1 
Insurance Software  14,907   1.6   10,921   1.3 
Corporate Education Software  14,880   1.6   -   0.0 
Employee Collaboration Software  12,086   1.3   10,000   1.2 
Lead Management Software  11,896   1.2   -   0.0 
Research Software  10,493   1.1   -   0.0 
Non-profit Services  10,000   1.0   10,039   1.2 
Alternative Investment Management Software  9,920   1.0   -   0.0 
Waste Services  9,000   0.9   9,000   1.1 
Dental Practice Management  8,626   0.9   8,403   1.0 
Mental Healthcare Services  8,419   0.9   -   0.0 
Industrial Products  8,263   0.9   8,427   1.0 
Financial Services Software  8,040   0.8   5,940   0.7 
Field Service Management  6,888   0.7   6,981   0.9 
Corporate Education Software  3,653   0.4   3,306   0.4 
Office Supplies  3,628   0.4   3,726   0.5 
Cyber Security  2,418   0.3   1,636   0.2 
Staffing Services  2,061   0.2   1,912   0.2 
Consumer Products  921   0.1   693   0.1 
Facilities Maintenance  617   0.1   482   0.1 
Healthcare Products Manufacturing  585   0.1   714   0.1 
Healthcare Supply  -   0.0   5,194   0.6 
Dental Practice Management Software  -   0.0   35,038   4.3 
Total $954,664   100.0% $817,567   100.0%

Saratoga Investment Corp.

 

  November 30, 2022  February 28, 2022 
  Investments
At
Fair Value		  Percentage
of Total
Portfolio		  Investments
At
Fair Value		  Percentage
of Total
Portfolio		 
  ($ in thousands) 
Healthcare Software $113,161   11.5% $90,126   11.0%
IT Services  85,394   8.7   80,804   9.9 
Consumer Services  68,577   7.0   38,234   4.7 
Real Estate Services  53,219   5.4   53,506   6.6 
HVAC Services and Sales  49,005   5.0   29,976   3.7 
Education Software  44,589   4.5   33,656   4.1 
Structured Finance Securities(1)  38,899   4.0   38,030   4.7 
Hospitality/Hotel  37,918   3.9   19,925   2.4 
Education Services  34,505   3.5   35,309   4.3 
Marketing Orchestration Software  28,676   2.9   28,777   3.5 
Sports Management  26,803   2.7   26,654   3.3 
Investment Fund  26,782   2.7   25,140   3.1 
Healthcare Services  26,251   2.7   42,054   5.1 
Financial Services  26,176   2.7   23,540   2.9 
Talent Acquisition Software  26,039   2.7   19,652   2.4 
Direct Selling Software  25,712   2.6   -   0.0 
Restaurant  24,604   2.5   15,686   1.9 
Specialty Food Retailer  24,325   2.5   34,013   4.2 
Mentoring Software  21,413   2.2   18,321   2.2 
Legal Software  20,692   2.1   7,425   0.9 
Mental Healthcare Services  16,843   1.7   -   0.0 
Insurance Software  16,600   1.7   10,921   1.3 
Payroll Services  15,489   1.6   17,000   2.1 
Corporate Education Software  14,969   1.5   -   0.0 
Non-profit Services  13,036   1.3   10,039   1.2 
Employee Collaboration Software  12,506   1.3   10,000   1.2 
Lead management Software  11,896   1.2   -   0.0 
Dental Practice Management  11,192   1.1   8,403   1.0 
Research Software  10,493   1.1   -   0.0 
Alternative Investment Management Software  9,920   1.0   -   0.0 
Industrial Products  9,090   0.9   8,427   1.0 
Waste Services  9,000   0.9   9,000   1.1 
Financial Services Software  8,070   0.8   5,940   0.7 
Field Service Management  7,891   0.8   6,981   0.9 
Corporate Education Software  3,724   0.4   3,306   0.4 
Office Supplies  3,604   0.4   3,726   0.5 
Cyber Security  2,484   0.3   1,636   0.2 
Staffing Services  2,080   0.2   1,912   0.2 
Facilities Maintenance  407   0.0   482   0.1 
Marketing Services  -   0.0   17,327   2.1 
Consumer Products  -   0.0   693   0.1 
Healthcare Products Manufacturing  -   0.0   714   0.1 
Healthcare Supply  -   0.0   5,194   0.6 
Dental Practice Management Software  -   0.0   35,038   4.3 
Total $982,034   100.0% $817,567   100.0%

 

(1)As of August 31,November 30, 2022 and February 28, 2022, the foregoing comprised of our investment in the subordinated notes and F-2-R-3 Notes of Saratoga CLO, as well as the unsecured notes and equity interests in the SLF JV and E-Notes of SLF 2022.


The following table shows Saratoga CLO’s portfolio composition by industry grouping at fair value at November 30, 2022 and February 28, 2022:

Saratoga CLO

  November 30, 2022  February 28, 2022 
  Investments
at
Fair Value		  Percentage
of Total
Portfolio		  Investments
at
Fair Value		  Percentage
of Total
Portfolio		 
  ($ in thousands) 
Banking, Finance, Insurance & Real Estate $112,491   19.0% $123,124   19.4%
Services: Business  64,444   10.9   69,491   10.9 
High Tech Industries  54,876   9.3   60,048   9.4 
Healthcare & Pharmaceuticals  37,929   6.4   43,136   6.9 
Services: Consumer  36,096   6.1   41,393   6.5 
Telecommunications  26,192   4.4   27,058   4.2 
Consumer goods: Durable  24,499   4.1   21,085   3.2 
Retail  22,219   3.7   16,050   2.5 
Chemicals, Plastics, & Rubber  21,302   3.6   22,669   3.5 
Media: Advertising, Printing & Publishing  20,544   3.5   19,660   3.1 
Automotive  20,306   3.4   24,207   3.7 
Containers, Packaging & Glass  18,355   3.1   15,253   2.4 
Beverage, Food & Tobacco  16,960   2.9   22,086   3.4 
Aerospace & Defense  14,372   2.4   14,369   2.2 
Construction & Building  13,030   2.2   11,102   1.7 
Consumer goods: Non-durable  12,781   2.2   14,359   2.2 
Hotel, Gaming & Leisure  12,771   2.2   16,572   2.6 
Media: Broadcasting & Subscription  11,429   1.9   11,539   1.8 
Media: Diversified & Production  8,525   1.4   9,203   1.4 
Capital Equipment  8,363   1.4   10,062   1.6 
Utilities: Oil & Gas  7,256   1.2   8,095   1.3 
Transportation: Consumer  6,804   1.1   4,891   0.8 
Wholesale  5,332   0.9   4,155   0.7 
Transportation: Cargo  4,373   0.7   3,752   0.6 
Metals & Mining  3,303   0.6   6,846   1.1 
Forest Products & Paper  3,189   0.5   9,367   1.5 
Utilities: Electric  2,336   0.4   4,026   0.6 
Energy: Electricity  2,151   0.4   3,660   0.6 
Environmental Industries  489   0.1   1,550   0.2 
Energy: Oil & Gas  181   0.0   155   0.0 
Total $592,898  $100% $638,963  $100%


Portfolio composition by geographic location at fair value

The following table shows our portfolio composition by geographic location at fair value at November 30, 2022 and February 28, 2022. The geographic composition is determined by the location of the corporate headquarters of the portfolio company.

  November 30, 2022  February 28, 2022 
  Investments
at
Fair Value		  Percentage
of Total
Portfolio		  Investments
at
Fair Value		  Percentage
of Total
Portfolio		 
  ($ in thousands) 
Southeast $253,245   25.8% $257,199   31.5%
Midwest  191,441   19.5   160,718   19.7 
West  169,670   17.3   183,643   22.5 
Northeast  147,680   15.0   85,414   10.4 
Southwest  131,471   13.4   62,475   7.6 
Northwest  2,484   0.3   1,636   0.2 
Other(1)  86,043   8.8   66,482   8.1 
Total $982,034   100.0% $817,567   100.0%

(1)Comprised of our investment in the subordinated notes and F-2-R-3 Notes of Saratoga CLO, as well as the unsecured notes and equity interests in the SLF JV.

 

Results of operations


 

The following table shows Saratoga CLO’s portfolio composition by industry grouping at fair value at August 31, 2022 and February 28, 2022:

Saratoga CLO            
  August 31, 2022  February 28, 2022 
  Investments at Fair Value  Percentage
of Total Portfolio		  Investments at Fair Value  Percentage
of Total Portfolio		 
  ($ in thousands) 
Banking, Finance, Insurance & Real Estate $112,361   18.6% $123,124   19.4%
Services: Business  58,705   9.7   69,491   10.9 
High Tech Industries  58,162   9.6   60,048   9.4 
Healthcare & Pharmaceuticals  38,153   6.3   43,136   6.9 
Services: Consumer  34,169   5.7   41,393   6.5 
Telecommunications  24,895   4.1   27,058   4.2 
Consumer goods: Durable  24,604   4.1   21,085   3.2 
Retail  22,691   3.8   16,050   2.5 
Chemicals, Plastics, & Rubber  21,604   3.6   22,669   3.5 
Automotive  21,069   3.5   24,207   3.7 
Media: Advertising, Printing & Publishing  20,087   3.3   19,660   3.1 
Containers, Packaging & Glass  18,478   3.1   15,253   2.4 
Beverage, Food & Tobacco  17,748   2.9   22,086   3.4 
Aerospace & Defense  13,459   2.2   14,369   2.2 
Consumer goods: Non-durable  13,308   2.2   14,359   2.2 
Media: Broadcasting & Subscription  11,628   1.9   11,539   1.8 
Construction & Building  11,279   1.9   11,102   1.7 
Hotel, Gaming & Leisure  11,156   1.8   16,572   2.6 
Capital Equipment  9,876   1.6   10,062   1.6 
Utilities: Oil & Gas  8,048   1.3   8,095   1.3 
Health Care Equipment & Supplies  7,215   1.2   -   0.0 
Media: Diversified & Production  6,949   1.2   9,203   1.4 
Transportation: Consumer  6,755   1.1   4,891   0.8 
Transportation: Cargo  4,397   0.7   3,752   0.6 
Wholesale  3,833   0.6   4,155   0.7 
Forest Products & Paper  3,560   0.6   9,367   1.5 
Energy: Electricity  3,376   0.6   3,660   0.6 
Metals & Mining  3,336   0.6   6,846   1.1 
Diversified Financial Services  2,903   0.5   -   0.0 
Software  2,613   0.4   -   0.0 
Utilities: Electric  2,325   0.4   4,026   0.6 
Media  1,861   0.3   -   0.0 
Environmental Industries  967   0.2   1,550   0.2 
Diversified Telecommunication Services  935   0.2   -   0.0 
Real Estate Investment Trusts (REITs)  872   0.1   -   0.0 
Leisure Products  483   0.1   -   0.0 
Energy: Oil & Gas  171   0.0   155   0.0 
Total $604,031   100.0% $638,963  $100%


Portfolio composition by geographic location at fair value

The following table shows our portfolio composition by geographic location at fair value at August 31, 2022 and February 28, 2022. The geographic composition is determined by the location of the corporate headquarters of the portfolio company.

  August 31, 2022  February 28, 2022 
  Investments at Fair
Value		  Percentage
of Total
Portfolio		  Investments at Fair
Value		  Percentage
of Total
Portfolio		 
  ($ in thousands) 
Southeast $280,946   29.4% $257,199   31.5%
West  168,044   17.6   183,643   22.5 
Midwest  180,607   18.9   160,718   19.7 
Northwestt  2,418   0.3   62,475   7.6 
Northeast  134,643   14.1   85,414   10.4 
Southwest  114,628   12.0   1,636   0.2 
Other(1)  73,378   7.7   66,482   8.1 
Total $954,664   100.0% $817,567   100.0%

(1)Comprised of our investment in the subordinated notes and F-2-R-3 Notes of Saratoga CLO, as well as the unsecured notes and equity interests in the SLF JV.

Results of operations

Operating results for the three and sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021 was as follows:

 

 For the three months ended  For the six months ended  For the three months ended  For the nine months ended 
 August 31,
2022		  August 31,
2021		  August 31,
2022		  August 31,
2021		  November 30,
2022		  November 30,
2021		  November 30,
2022		  November 30,
2021		 
 ($ in thousands)  ($ in thousands) 
Total investment income $21,853  $18,441  $40,532  $35,257  $26,257  $16,502  $66,789  $51,760 
Total operating expenses  14,155   12,048   24,858   26,308   16,380   11,305   41,238   37,614 
Net investment income  7,698   6,393   15,674   8,949   9,877   5,197   25,551   14,146 
Net realized gain (loss) from investments  7,944   1,502   8,106   3,412   (740)  9,917   7,366   13,329 
Income tax (provision) benefit from realized gain on investments  -   (449)  69   (449)  479   (2,447)  549   (2,896)
Net change in unrealized appreciation (depreciation) on investments  (13,259)  3,377   (22,591)  20,189   (3,176)  (6,043)  (25,768)  14,146 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments  (230)  (1,329)  (592)  (1,559)  (426)  2,480   (1,018)  921 
Realized losses on extinguishment of debt  (1,205)  (1,552)  (1,205)  (1,552)  0   (764)  (1,205)  (2,316)
Net increase (decrease) in net assets resulting from operations $948  $7,942  $(539) $28,990  $6,014  $8,340  $5,475  $37,330 

 

Investment income

The composition of our investment income for three and sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021 was as follows:

 

 For the three months ended  For the six months ended  For the three months ended For the nine months ended 
 August 31,
2022		  August 31,
2021		  August 31,
2022		  August 31,
2021		  November 30,
2022		 November 30,
2021		 November 30,
2022		 November 30,
2021		 
 ($ in thousands)  ($ in thousands) 
Interest from investments $19,233  $15,114  $35,839  $28,801  $23,517 $14,137 $59,356 $42,938 
Interest from cash and cash equivalents  34   1   35   2  201 1 235 2 
Management fee income  817   814   1,633   1,633  818 816 2,451 2,449 
Dividend Income  213   659   513   1,057  437 538 950 1,595 
Structuring and advisory fee income  1,408   1,038   2,260   2,340  553 582 2,814 2,923 
Other income  148   815   252   1,425   731  428  983  1,853 
Total investment income $21,853  $18,441  $40,532  $35,258  $26,257 $16,502 $66,789 $51,760 

 


 

 

For the three months ended August 31,November 30, 2022, total investment income increased $3.4$9.8 million, or 18.5%59.1%, to $21.9$26.3 million from $18.4$16.5 million for the three months ended August 31,November 30, 2021. Interest income from investments increased $4.1$9.4 million, or 27.3%66.3%, to $19.2$23.5 million for the three months ended August 31,November 30, 2022 from $15.1$14.1 million for the three months ended August 31,November 30, 2021. Interest income from investment increased due to the increase of $288.6$320.2 million, or 43.3%48.3%, in total investments at August 31,November 30, 2022 from $666.1$661.8 million at August 31,November 30, 2021 to $954.7$982.0 million as of August 31,November 30, 2022, combined with the increase in the weighted average current yield on investments to 9.0%10.4%, up from 8.2%8.1% at August 31,November 30, 2021.

 

For the sixnine months ended August 31,November 30, 2022, total investment income increased $5.3$15.0 million, or 15.0%29.0%, to $40.5$66.8 million from $35.3$51.8 million for the sixnine months ended August 31,November 30, 2021. Interest income from investments increased $7.0$16.4 million, or 24.4%38.2%, to $35.8$59.4 million for the sixnine months ended August 31,November 30, 2022 from $28.8$42.9 million for the sixnine months ended August 31,November 30, 2021. Interest income from investment increased due to the increase of $288.6$320.2 million, or 30.2%48.3%, in total investments at August 31,November 30, 2022 from $666.1$661.8 million at August 31,November 30, 2021 to $954.7$982.0 million as of August 31,November 30, 2022.

 

For the three and sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, total PIK income was $0.2$0.4 million and $0.8$0.2 million, respectively and $0.4$0.7 million and $1.1$1.3 million respectively.

 

Management fee income reflects the fee income received for managing the Saratoga CLO. For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, total management fee income was $0.8 million and $0.8 million, respectively. For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, total management fee income was $1.6$2.5 million and $1.6$2.4 million, respectively.

 

For the three and sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, total dividend income was $0.2$0.4 million and $0.7$0.5 million, respectively, and $0.5$0.9 million and $1.1$1.6 million, respectively. Dividends received is recorded in the consolidated statements of operations when earned, and the decrease primarily reflects dividend income received on various preferred equity investments last year that were not received this year.

 

For the three and sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, total structuring and advisory fee income was $1.4$0.6 million and $1.0$0.6 million, respectively, and $2.3$2.8 million and $2.3$2.9 million, respectively. Structuring and advisory fee income represents fee income earned and received performing certain investment and advisory activities during the closing of new investments.

 

For the three and sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, other income was $0.2$0.7 million and $0.8$0.4 million, respectively, and $0.3$1.0 million and $1.4$1.9 million, respectively. Other income includes origination fees and prepayment income fees and is recorded in the consolidated statements of operations when earned. The decreaseincrease was driven primarily by amendment fees earned in the quarter, while the decrease in the nine months period related to prepayment penalties earned from certain redemptions in the prior year that did not recur this year.

 

Operating expenses

The composition of our operating expenses for the three and sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021 was as follows:

 

 For the three months ended  For the three months ended  For the three months ended For the nine months ended 
 August 31,
2022		  August 31,
2021		  August 31,
2022		  August 31,
2021		  November 30,
2022		 November 30,
2021		 November 30,
2022		 November 30,
2021		 
 ($ in thousands)  ($ in thousands) 
Interest and debt financing expenses $7,922  $5,184  $14,794  $9,525  $8,450  $4,843  $23,243  $14,368 
Base management fees  4,104   3,002   7,906   5,761   4,259   2,923   12,165   8,685 
Incentive management fees expense (benefit)  590   2,018   (1,314)  7,281   1,531   2,417   217   9,698 
Professional fees  368   461   785   968   559   (104)  1,344   863 
Administrator expenses  773   713   1,523   1,406   819   750   2,342   2,156 
Insurance  90   86   178   173   89   85   266   258 
Directors fees and expenses  110   101   220   192   80   73   300   266 
General & administrative and other expenses  300   453   967   944   525   358   1,492   1,302 
Income tax expense (benefit)  (102)  30   (201)  58   68   (40)  (132)  18 
Total operating expenses $14,155  $12,048  $24,858  $26,308  $16,380  $11,305  $41,237  $37,614 

 


 

 

For the three months ended August 31,November 30, 2022, total operating expenses increased $2.1$5.0 million, or 17.5%44.5%, compared to the three months ended August 31,November 30, 2021. For the sixnine months ended August 31,November 30, 2022, total operating expenses decreased $1.5increased $3.6 million, or 5.5%9.6%, compared to the sixnine months ended August 31,November 30, 2021.

 

For the three months ended August 31,November 30, 2022, interest and debt financing expenses increased $2.7$3.6 million, or 52.8%74.5%, compared to the three months ended August 31,November 30, 2021. The increase is primarily attributable to an increase in average outstanding debt from $425.9 million for the three months ended August 31,November 30, 2021 to $626.7$679.0 million for the three months ended August 31,November 30, 2022, primarily reflecting (i) the issuance of the 4.375% 2026 Notes and the 4.35% 2027 Notes during the year ended February 28, 2022, and (ii) the issuance of the 6.00% 2027 Notes and the 8.00% 2027 Notes during the three months ended August 31,November 30, 2022.

 

For the sixnine months ended August 31,November 30, 2022, interest and debt financing expenses increased $5.3$8.9 million, or 55.3%61.8%, compared to the sixnine months ended August 31,November 30, 2021. The increase is primarily attributable to an increase in average outstanding debt from $378.3 million for the sixnine months ended August 31,November 30, 2021 to $609.0$476.3 million for the sixnine months ended August 31,November 30, 2022, primarily reflecting (i) the issuance of the 4.375% 2026 Notes and the 4.35% 2027 Notes during the year ended February 28, 2022, and (ii) the issuance of the 6.00% 2027 Notes and the 8.00% 2027 Notes during the sixnine months ended August 31,November 30, 2022.

 

For the three and sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the weighted average interest rate on our outstanding indebtedness was 4.46%4.43% and 4.26%3.98%, respectively and 4.45%5.74% and 4.39%4.24%, respectively. The decrease in weighted average interest rate was primarily driven by the issuance of the lower-rate 4.375% 2026 Notes and 4.35% 2026 Notes, the redemption of the 6.25% 2025 Notes, the redemption of the 7.25% 2027 Notes and the issuance of lower cost SBA debentures over the past year.

 

As of August 31,November 30, 2022 and February 28, 2022, the SBA debentures represented 36.8%34.6% and 36.2% of overall debt, respectively.

 

For the three months ended August 31,November 30, 2022, base management fees increased $1.1$1.3 million, or 36.7%45.7%, from $3.0 million to $4.1$4.3 million compared to the three months ended August 31,November 30, 2021. The increase in base management fees results from the 36.7%45.7% increase in the average value of our total assets, less cash and cash equivalents, from $680.6$670.1 million for the three months ended August 31,November 30, 2021 to $930.4$976.1 million for the three months ended August 31,November 30, 2022. For the sixnine months ended August 31,November 30, 2022, base management fees increased $2.1$3.4 million, or 37.2%40.1%, from $5.8$8.7 million to $7.9$12.2 million compared to the sixnine months ended August 31,November 30, 2021. The increase in base management fees results from the 37.2%40.1% increase in the average value of our total assets, less cash and cash equivalents, from $653.0$658.7 million for the threenine months ended August 31,November 30, 2021 to $896.2$922.6 million for the threenine months ended August 31,November 30, 2022.

 

For the three months ended August 31,November 30, 2022, incentive management fees decreased $1.4$0.9 million, or 70.8%36.7%, compared to the three months ended August 31,November 30, 2021. The incentive fee on income remained relatively unchanged at $1.7increased from $1.5 million to $2.3 million for the three months ended August 31, 2021andNovember 30, 2021 and 2022. The incentive fee on capital gains decreased from a $0.3$0.9 million expense for the three months ended August 31,November 30, 2021 to a $(1.1)$(0.8) million benefit for the three months ended August 31,November 30, 2022, both reflecting the incentive fee income on net unrealized appreciation and depreciation recognized during both these periods.

 

For the sixnine months ended August 31,November 30, 2022, incentive management fees decreased $8.6$9.5 million, or 118.0%97.8%, compared to the sixnine months ended August 31,November 30, 2021. The incentive fee on income decreased from $3.2$4.8 million for the threenine months ended August 31,November 30, 2021 to $1.7$4.0 million for the threenine months ended August 31,November 30, 2022, reflecting the Company’s net investment income being below the hurdle based on net asset value for incentive fee purposes for part of the sixnine months. The incentive fee on capital gains decreased from a $4.0$4.9 million expense for the threenine months ended August 31,November 30, 2021 to a $(3.0)$(3.7) million benefit for the threenine months ended August 31,November 30, 2022, both reflecting the incentive fee income on net unrealized appreciation and depreciation recognized during both these periods.

 

For the three and sixnine months ended August 31,November 30, 2022, professional fees decreased $0.1increased $0.7 million, or 20.1%74.5%, and decreased $0.2increased $0.5 million, or 18.8%55.7%, respectively, compared to the three and sixnine months ended August 31,November 30, 2021.

 

For the three and sixnine months ended August 31,November 30, 2022, administrator expenses increased $0.1$0.07 million, or 8.5%634.8%, and increased $0.1$0.5 million or 8.3%55.7% compared to the three and sixnine months ended August 31,November 30, 2022.

 


 

 

As discussed above, the increase in interest and debt financing expenses for the three months ended August 31,November 30, 2022 compared to the three months ended August 31,November 30, 2021 is primarily attributable to an increase in the average dollar amount of outstanding debt. During the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average borrowings outstanding under the Encina Credit Facility and the Madison Credit Facility was $25.0$32.8 million and $23.8$9.2 million, respectively, and the average weighted average interest rate on the outstanding borrowing under the Encina Credit Facility and the Madison Credit Facility was 5.83%7.19% and 6.37%4.94%, respectively. For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average borrowings outstanding of SBA debentures was $222.0$242.7 million and $181.1$176.6 million, respectively. For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 2.75%2.86% and 2.65%2.44%, respectively. During the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of our 6.25% fixed-rate 2025 Notes outstanding was $0.0 million and $60.0$0.0 million, respectively. During the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the weighted average dollar amount of our 7.25% fixed-rate 2025 Notes outstanding was $10.8$0.0 million and $43.1 million, respectively. During the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the weighted average dollar amount of our 7.75% fixed-rate 2025 Notes outstanding was $5.0 million and $5.0 million, respectively. During the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of our 6.25% fixed-rate 2027 Notes outstanding was $15.0 million and $15.0 million, respectively. During the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of our 4.375% fixed-rate 2026 Notes outstanding was $175.0 million and $115.2$175.0 million, respectively. During the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of our 4.35% fixed-rate 2027 Notes outstanding was $75.0 million and $0.0 million, respectively. During the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of our 6.00% fixed-rate 2027 Notes outstanding was $99.0$105.5 million and $0.0 million, respectively. During the three months ended November 30, 2022 and November 30, 2021, the average dollar amount of our 8.00% 2027 Notes outstanding was $16.9 million and $0.0 million, respectively. During the three months ended November 30, 2022 and November 30, 2021, the average dollar amount of our 7.00% 2025 Notes outstanding was $11.0 million and $0.0 million, respectively.

 

As discussed above, the increase in interest and debt financing expenses for the sixnine months ended August 31,November 30, 2022 compared to the sixnine months ended August 31,November 30, 2021 is primarily attributable to an increase in the average dollar amount of outstanding debt. During the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average borrowings outstanding under the Encina Credit Facility and the Madison Credit Facility was $22.5$25.9 million and $9.5$12.5 million, respectively, and the average weighted average interest rate on the outstanding borrowing under the Encina Credit Facility and the Madison Credit Facility was 5.40%6.16% and 4.02%, respectively. For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average borrowings outstanding of SBA debentures was $218.4$226.5 million and $169.8$172.0 million, respectively. For the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 2.67%2.74% and 2.78%2.66%, respectively. During the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of our 6.25% fixed-rate 2025 Notes outstanding was $0.0 million and $58.7$39.3 million, respectively. During the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the weighted average dollar amount of our 7.25% fixed-rate 2025 Notes outstanding was $27.0$18.0 million and $43.1 million, respectively. During the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the weighted average dollar amount of our 7.75% fixed-rate 2025 Notes outstanding was $5.0 million and $5.0 million, respectively. During the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of our 6.25% fixed-rate 2027 Notes outstanding was $15.0 million and $15.0 million, respectively. During the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of our 4.375% fixed-rate 2026 Notes outstanding was $175.0 million and $84.3$115.3 million, respectively. During the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of our 4.35% fixed-rate 2027 Notes outstanding was $75.0 million and $0.0 million, respectively. During the sixnine months ended August 31,November 30, 2022 and August 31,November 30, 2021, the average dollar amount of our 6.00% fixed-rate 2027 Notes outstanding was $44.0$82.5 million and $60.0$0.0 million, respectivelyrespectively. During the nine months ended November 30, 2022 and November 30, 2021, the average dollar amount of our 8.00% 2027 Notes outstanding was $5.6 million and $0.0 million, respectively. During the nine months ended November 30, 2022 and November 30, 2021, the average dollar amount of our 7.00% 2025 Notes outstanding was $3.7 million and $0.0 million, respectively.

 

For the three months ended August 31,November 30, 2022 and August 31,November 30, 2021, there were income tax expense (benefits) of $0.07 million and $(0.04) million, respectively. For the nine months ended November 30, 2022 and November 30, 2021, there were income tax expense (benefits) of $(0.1) million and $0.03 million, respectively. For the six months ended August 31, 2022 and August 31, 2021, there were income tax expense (benefits) of $(0.2) million and $0.06$0.02 million, respectively. This relates to net deferred federal and state income tax expense (benefit) with respect to operating gains and losses and income derived from equity investments held in the taxable blockers, as well as current federal and state income taxes on those operating gains and losses when realized.

 


Net realized gains (losses) on sales of investments

 

For the three months ended August 31,November 30, 2022, the Company had $75.1$56.9 million of sales, repayments, exits or restructurings resulting in $7.9$0.7 million of net realized gains.losses. For the sixnine months ended August 31,November 30, 2022, the Company had $85.2$162.1 million of sales, repayments, exits or restructurings resulting in $8.1$7.4 million of net realized gains.

 

Six Months ended August 31, 2022
Nine Months ended November 30, 2022Nine Months ended November 30, 2022
       
Issuer Asset Type Gross Proceeds  Cost  Net
Realized
Gain (Loss)		  Asset Type Gross Proceeds  Cost  Net
Realized
Gain (Loss)		 
PDDS Buyer, LLC Equity Interests $9,943,838  $2,000,000  $7,943,838  Equity Interests $9,943,838  $2,000,000  $7,943,838 
Censis Technologies Equity Interests  -   -   68,731 
Ohio Medical, LLC Equity Interests  770,161   380,353   389,808 
Targus Holdings, Inc. Equity Interests  294,087   1,424,329   (1,130,242)
Censis Technologies, Inc. Equity Interests  -   -   68,731 
Texas Teachers of Tomorrow, LLC Equity Interests  -   -   24,977  Equity Interests  -   -   24,977 
V Rental Holdings LLC Equity Interests  -   -   68,800  Equity Interests  -   -   68,800 

 

The $7.9 million of net realized gains was from the sale of the equity position in the Company’s PPDS Buyer, LLC investment.

The $0.4 million of net realized gain was from the sale of the equity position in the Company’s Ohio Medical, LLC investment.

The $1.1 million of net realized loss was from the sale of the equity position in the Company’s Targus Holdings, Inc investment.

 

The Company received escrow payments from the prior sales of its investments in Censis Technologies, Inc., Texas Teachers of Tomorrow, LLC and V Rental Holdings LLC.

 


For the sixnine months ended August 31,November 30, 2021, the Company had $149.8$216.2 million of sales, repayments, exits or restructurings resulting in $3.4$13.3 million of net realized gains.

 

Six Months ended August 31, 2021
Nine Months ended November 30, 2021Nine Months ended November 30, 2021
       
Issuer Asset Type Gross Proceeds  Cost  Net
Realized
Gain		  Asset Type Gross Proceeds  Cost  Net
Realized
Gain		 
GreyHeller LLC Equity Interests $8,178,457  $850,000  $7,328,457 
Lexipol, LLC Equity Interests  10,792,127   10,792,268   (141)
My Alarm Center, LLC Equity Interests $-  $4,867,102  $(4,837,102) Equity Interests  -   4,867,102   (4,867,102)
Passageways, Inc. Equity Interests  7,439,802   1,000,000   6,439,802  Equity Interests  7,439,802   1,000,000   6,439,802 
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-1-R-3 Note Structured Finance Securities  8,360,133   8,500,000   (139,867) Structured Finance Securities  8,360,133   8,500,000   (139,867)
Texas Teachers of Tomorrow, LLC Equity Interests  3,338,611   750,000   2,588,611 
V Rental Holdings LLC Equity Interests  2,344,817   365,814   1,978,903  Equity Interests  2,344,817   365,914   1,978,903 

The $7.3 million of net realized gains was from the sale of the equity position in the Company’s GreyHeller LLC investment.

 

The $4.9 million of net realized loss was from the Company’s My Alarm Center, LLC investment that was deemed worthless during this period.

 

The $6.4 million of net realized gains was from the salessale of the equity position in the Company’s Passageways Inc. investment.

 

The $0.1 million of net realized loss was from the repayment of the structured finance securities in the Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-1-R-3 Note.

 

The $2.6 million of net realized gains was from the sale of the equity position in the Company’s Texas Teachers of Tomorrow, LLC investment.

The $1.9 million of net realized gains was from the salessale of the equity position in the Company’s V Rental Holdings LLC investment.

Net change in unrealized appreciation (depreciation) on investments

For the six months ended August 31, 2022, our investments had a net change in unrealized depreciation of $22.6 million versus a net change in unrealized appreciation of $20.2 million for the six months ended August 31, 2021. The most significant cumulative net change in unrealized appreciation (depreciation) for the six months ended August 31, 2022 were the following (dollars in thousands):

Six Months ended August 31, 2022
Issuer Asset Type Cost  Fair Value  Total
Unrealized
Appreciation
(Depreciation)		  YTD
Change in
Unrealized
Appreciation
(Depreciation)		 
Artemis Wax Corp. First Lien Term Loan & Equity Interests $55,023  $58,657  $3,634  $2,174 
Netreo Holdings, LLC First Lien Term Loan & Equity Interests  31,330   40,506   9,176   (1,468)
PDDS Buyer, LLC First Lien Term Loan & Equity Interests  -   -   -   (5,094)
Pepper Palace, Inc. First Lien Term Loan & Equity Interests  34,383   26,992   (7,391)  (6,872)
Saratoga Investment Corp. CLO 2013-1, Ltd. Structured Finance Securities  39,489   32,327   (7,162)  (3,543)
Saratoga Senior Loan Fund I JV, LLC Equity Interests  14,072   6,727   (7,345)  (6,236)
Zollege PBC First Lien Term Loan & Equity Interests  16,635   15,211   (1,424)  (1,289)

 


 

 

Net change in unrealized appreciation (depreciation) on investments

For the nine months ended November 30, 2022, our investments had a net change in unrealized depreciation of $25.7 million versus a net change in unrealized appreciation of $14.1 million for the nine months ended November 30, 2021. The $2.2most significant cumulative net change in unrealized appreciation (depreciation) for the nine months ended November 30, 2022 were the following (dollars in thousands):

Nine Months ended November 30, 2022
Issuer Asset Type Cost  Fair Value  Total
Unrealized
Appreciation
(Depreciation)		  YTD
Change in
Unrealized
Appreciation
(Depreciation)		 
Pepper Palace, Inc. First Lien Term Loan & Equity Interests $34,314  $24,325  $(9,989) $(9,470) 
Artemis Wax Corp. First Lien Term Loan & Equity Interests  64,663   68,576   3,913   2,453 
Vector Controls Holding Co., LLC First Lien Term Loan & Equity Interests  3,478   9,091   5,613   2,194 
Axero Holdings, LLC First Lien Term Loan & Equity Interests  10,546   12,506   1,961   1,412 
Destiny Solutions Inc. Equity Interests  3,969   8,743   4,774   1,111 
Zollege PBC First Lien Term Loan & Equity Interests  16,641   15,377   (1,264)  (1,130)
Netreo Holdings, LLC First Lien Term Loan & Equity Interests  33,419   42,394   8,975   (1,668)
PDDS Buyer, LLC First Lien Term Loan & Equity Interests  -   -   -   (5,094)
Saratoga Investment Corp. CLO 2013-1, Ltd. Structured Finance Securities  29,969   19,427   (10,542)  (6,923)
Saratoga Senior Loan Fund I JV, LLC Equity Interests  35,202   26,781   (8,421)  (7,312)

The $9.5 million of unrealized depreciation in our investment Pepper Palace, Inc. was driven by overall company performance.

The $2.5 million of unrealized appreciation in our investment in Artemis Wax Corp. was driven by growth and improved financial performance.

 

The $1.5$2.2 million of unrealized appreciation in our investment in Vector Controls Holdings Co., LLC was driven by overall company performance.

The $1.4 million of unrealized appreciation in our investment in Axero Holdings, LLC was driven by growth and improved financial performance.

The $1.1 million of unrealized appreciation in our investment in Destiny Solutions Inc. was driven by growth and improved financial performance.

The $1.1 million of unrealized depreciation in our investment in Zollege PBC was driven by overall company performance.

The $1.7 million of unrealized depreciation in our investment Netreo Holdings, LLC was driven by increased company leverage.

 

The $5.1 million of unrealized depreciation in our investment PDDS Buyer, LLC was driven by the sale of that investment, resulting in a reversal of previously recognized unrealized appreciation reclassified to realized gains.

 

The $6.9 million of unrealized depreciation in our investment Pepper Palace, Inc. was driven by overall company performance.

The $3.5 million of unrealized depreciation in our investment Saratoga Investment Corp. CLO 2013-1, LtdLtd. was driven by the increase in discount rates, the impact of changes in LIBOR changesrates and overall market conditions.

 

The $6.2$7.3 million of unrealized depreciation in our investment Saratoga Senior Loan Fund I, JV, LLC was driven by the decreaseincrease in discount rates and overall market prices of the underlying CLO warehouse assets.conditions.

 


The $1.3 million of unrealized depreciation in our investment in Zollege PBC was driven by overall company performance.

 

The most significant cumulative net change in unrealized appreciation (depreciation) for the sixnine months ended August 31,November 30, 2021 were the following (dollars in thousands):

 

Six Months ended August 31, 2021
Issuer Asset Type Cost  Fair Value  Total
Unrealized
Appreciation		  YTD
Change in
Unrealized
Appreciation		 
My Alarm Center, LLC Equity Interests $-  $-  $-  $4,686 
GreyHeller LLC First Lien Term Loan & Equity Interests  14,034   21,816   7,782   4,680 
Netreo Holdings, LLC First Lien Term Loan & Equity Interests  23,942   33,770   9,828   4,240 
Saratoga Investment Corp. CLO 2013-1, Ltd. Structured Finance Securities  34,505   35,061   556   2,953 
Schoox, Inc. Equity Interests  476   3,258   2,783   2,783 
Texas Teachers of Tomorrow, LLC First Lien Term Loan & Equity Interests  26,274   29,324   3,050   2,663 
Destiny Solutions Inc. First Lien Term Loan & Equity Interests  3,969   6,217   2,248   1,221 
Village Realty Holdings LLC Equity Interests  366   2,209   1,843   (1,843)
Passageways, Inc. First Lien Term Loan & Equity Interests  10,953   17,598   6,645   (2,311)

Nine Months ended November 30, 2021
Issuer Asset Type Cost  Fair Value  Total
Unrealized
Appreciation		  YTD
Change in
Unrealized
Appreciation		 
My Alarm Center, LLC Equity Interests $-  $-  $-  $4,686 
C2 Educational Systems, Inc. First Lien Term Loan & Equity Interests  18,979   17,896   (1,083)  1,416 
Netreo Holdings, LLC First Lien Term Loan & Equity Interests  24,056   33,934   9,878   4,290 
PDDS Buyer, LLC First Lien Term Loan & Equity Interests  22,865   26,400   3,535   2,711 
Schoox, Inc. Equity Interests  476   3,447   2,971   2,971 
Top Gun Pressure Washing, LLC First Lien Term Loan & Equity Interests  10,908   10,995   87   1,154 
Destiny Solutions Inc. First Lien Term Loan & Equity Interests  3,969   6,622   2,653   1,626 

Village Realty Holdings LLC & V Rental Holdings LLC

 First Lien Term Loan & Equity Interests  -   -   -   (2,183)
Passageways, Inc. First Lien Term Loan & Equity Interests  -   -   -   (2,311)

 

The $4.7 million net change in unrealized appreciation in our investment in My Alarm Center, LLC was primarily driven by the reversal of previously recognized unrealized depreciation reclassified to realized losses.

 

The $4.7$1.4 million net change in unrealized appreciation in our investment in GreyHeller LLCC2 Education Systems was primarily driven by improved financial performance.

 

The $4.2$4.3 million net change in unrealized appreciation in our investment in Netreo Holdings, LLC was primarily driven by growth and improved financial performance.

The $3.0 million of unrealized appreciation in our investment in Saratoga Investment Corp. CLO 2013-1, Ltd. was primarily driven by improved market performance, combined with outperformance achieved from the assets in the CLO.

The $2.8 million net change in unrealized appreciation in our investment in Schoox, Inc. was primarily driven by overall company performance.

 

The $2.7 million net change in unrealized appreciation in our investment in Texas Teachers of Tomorrow,PDDS Buyer, LLC was primarily driven by improved financialoverall strong company performance.

The $3.0 million net change in unrealized appreciation in our investment in Schoox, Inc. was driven by overall strong company performance.

 

The $1.2 million net change in unrealized appreciation in our investment in Top Gun Pressure Washing, LLC was driven by growth, improved financial performance, and a reduced leverage profile.

The $1.6 million net change in unrealized appreciation in our investment in Destiny Solutions Inc. was primarily driven by improvedgrowth and overall strong financial performance.

 

The $1.8$2.2 million net change in unrealized depreciation in our investment in Village Realty Holdings, LLC was primarily driven by the sale of that investment, resulting in a reversal of previously recognized unrealized appreciation reclassified to realized gains.

 

The $2.3 million net change in unrealized depreciation in our investment in Passageways, Inc. was primarily driven by the sale of that investment, resulting in a reversal of previously recognized unrealized appreciation reclassified to realized gains.

 


Changes in net assets resulting from operations

 

For the three months ended August 31,November 30, 2022, we recorded a net increase in net assets resulting from operations of $1.0$6.0 million. Based on 11,963,27611,893,173 weighted average common shares outstanding as of August 31,November 30, 2022, our per share net increase in net assets resulting from operations was $0.08$0.51 for the three months ended August 31,November 30, 2022. For the three months ended August 31,November 30, 2021, we recorded a net increase in net assets resulting from operations of $7.9$8.3 million. Based on 11,175,43611,450,181 weighted average common shares outstanding as of August 31,November 30, 2021, our per share net increase in net assets resulting from operations was $0.71$0.73 for the three months ended August 31,November 30, 2021. 

 

For the sixnine months ended August 31,November 30, 2022, we recorded a net decreaseincrease in net assets resulting from operations of $0.5$5.5 million. Based on 12,037,85511,989,811 weighted average common shares outstanding as of August 31,November 30, 2022, our per share net decrease in net assets resulting from operations was $0.04$0.46 for the sixnine months ended August 31,November 30, 2022. For the sixnine months ended August 31,November 30, 2021, we recorded a net increase in net assets resulting from operations of $29.0$37.3 million. Based on 11,172,78711,312,991 weighted average common shares outstanding as of August 31,November 30, 2021, our per share net decrease in net assets resulting from operations was $2.59 for the six months ended August 31, 2021.$3.30


 

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, the Encina Credit Facility, our continued access to the SBA debentures, future borrowings and future offerings of debt and equity 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 our equity ATM program, 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 operating taxable income in order to satisfy the distribution requirement applicable to RICs under the Code. In satisfying this distribution requirement, in accordance with certain applicable provisions of the Code and the Treasury regulations and a revenue procedure 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 that the aggregate amount of cash to be distributed to all stockholders must be at least 20% of the aggregate declared distribution. We may rely on the revenue procedure 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 the board of directors, including a majority of our independent 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 184.2%173.2% as of August 31,November 30, 2022 and 209.2%209.3% as of February 28, 2022. 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, to pay dividends 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.

Due to the diverse capital sources available to us at this time, we believe we have adequate liquidity to support our near-term capital requirements. As the impact of COVID-19 continues to evolve, we will continually evaluate our overall liquidity position and take proactive steps to maintain that position based on the current circumstances. This “Financial Condition, Liquidity and Capital Resources” section should be read in conjunction with “Recent COVID-19 Developments” above, as well as with the notes of our consolidated financial statements.

  


Madison Revolving Credit Facility

 

The senior secured revolving credit facility we entered into with Madison Capital Funding LLC (the “Madison Credit Facility”) on June 30, 2010, was most recently amended on September 3, 2021 and then fully repaid and terminated on October 4, 2021.

 

Encina Credit Facility

 

Below is a summary of the terms of the senior secured revolving credit facility we entered into with Encina Lender Finance, LLC on October 4, 2021.

 

Commitment. The Company entered into a senior secured revolving credit facility in the initial facility amount of $50.0 million (the “Facility Amount”). The Company has the ability to request an increase in the Facility Amount during the first two years following the closing date to up to $75.0 million. The commitment termination date is October 4, 2024.


 

Availability. The Company can draw up to the lesser of (i) the Facility Amount and (ii) the Borrowing Base. The Borrowing Base is an amount equal to (i) the difference of (A) the product of the applicable advance rate which varies from 50.0% to 75.0% depending on the type of loan asset (Defaulted Loans being excluded in that they carry an advance rate of 0%) and the value, determined in accordance with the Encina Credit Facility (the “Adjusted Borrowing Value”), of certain “eligible” loan assets pledged as security for the loan (the “Borrowing Base Value”) and (B) the Excess Concentration Amount, as calculated in accordance with the Encina Credit Facility, plus (ii) any amounts held in the Prefunding Account and, without duplication, Excess Cash held in the Collection Account, less (iii) the product of (a) the amount of any undrawn funding commitments the Company has under any loan asset and (b) the Unfunded Exposure Haircut Percentage, and less (iv) $100,000. Each loan asset held by the Company as of the date on which the Encina 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 and under certain circumstances, 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 Encina 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.

 

The Encina Credit Facility requires certain minimum drawn amounts. For the period beginning on the closing date and ended April 4, 2022, the minimum funding amount was $12.5 million. For the period beginning on April 5, 2022 through maturity, the minimum funding amount is the greater of $25.0 million and 50% of the Facility Amount in effect from time to time.

 

Collateral. The Encina Credit Facility is secured by assets of Saratoga Investment Funding II LLC (“SIF II”) and pledged to the lender under the credit facility. SIF II is a wholly owned special purpose entity formed by the Company for the purpose of entering into the Encina Credit Facility.

 

Interest Rate and Fees. Under the Encina Credit Facility, funds are borrowed from or through certain lenders at the greater of the prevailing LIBOR rate and 0.75%, plus an applicable margin of 4.00%. The Encina Credit Facility includes benchmark replacement provisions which permit the Administrative Agent and the Borrower to select a replacement rate upon the unavailability of LIBOR. In addition, the Company pays 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 Encina Credit Facility for the duration of the term of the credit facility. Accrued interest and commitment fees are payable monthly in arrears. The Company was also obligated to pay certain other fees to the lenders in connection with the closing of the Encina Credit Facility.

 

Collateral Tests. It is a condition precedent to any borrowing under the Encina Credit Facility that the principal amount outstanding under the Encina Credit Facility, after giving effect to the proposed borrowings, not exceed the Borrowing Base (the “Borrowing Base Test”). In addition to satisfying the Borrowing Base Test, the following tests must also be satisfied (together with Borrowing Base Test, the “Collateral Tests”):

 

o○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 Encina Credit Facility, to accrued interest and commitment fees payable to the lenders under the Encina Credit Facility for the last 6 payment periods must equal at least 175.0%.

 


o○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 (in each case, subject to certain adjustments) to outstanding borrowings under the Encina Credit Facility plus the Unfunded Exposure Amount must equal at least 200.0%.


 

The Encina Credit Facility also may require 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 ineligible collateral loans will be excluded from the calculation of the Borrowing Base and may lead to a Borrowing Base Deficiency, which may be cured by effecting one or more (or any combination thereof) of the following actions: (A) deposit into or credit to the collection account cash and eligible investments, (B) repay outstanding borrowings (together with certain costs and expenses), (C) sell or substitute loan assets in accordance with the Encina Credit Facility, or (D) pledge additional loan assets as collateral. Compliance with the Collateral Tests is also a condition to the discretionary sale of pledged loan assets by the Company.

 

Priority of Payments. The priority of payments provisions of the Encina Credit Facility require, after payment of specified fees and expenses, that collections of interest from the loan assets and, to the extent that these are insufficient, collections of principal 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.

 

Operating Expenses. The priority of payments provision of the Encina Credit Facility provides for the payment of certain operating expenses of the Company out of collections on interest and principal in accordance with the priority established in such provision. The operating expenses payable pursuant to the priority of payment provisions is limited to $200,000 per annum.

 

Covenants; Representations and Warranties; Events of Default. The Encina Credit Facility contains customary representations and warranties, affirmative covenants, negative covenants and events of default. The Encina Credit Facility does not contain grace periods for breach by the Company of any negative covenants or of certain of the affirmative covenants, including, without limitation, those related to preservation of the existence and separateness of the Company. Other events of default under the Encina Credit Facility include, among other things, the following:

 

o○failure of the Company to maintain an Interest Coverage Ratio of less than 175.0%;

 

o○failure of the Company to maintain an Overcollateralization Ratio of less than 200.0%;

 

o○the filing of certain ERISA or tax liens on assets of the Company or the Equityholder;

 

o○failure by Specified Holders to collectively, directly or indirectly, own and control at least 51% of the outstanding equity interests of Saratoga Investment Advisor, or (y) possess the right to elect (through contract, ownership of voting securities or otherwise) at all times a majority of the board of directors (or similar governing body) of Saratoga Investment Advisor and to direct the management policies and decisions of Saratoga Investment Advisor, or (ii) the dissolution, termination or liquidation in whole or in part, transfer or other disposition, in each case, of all or substantially all of the assets of, Saratoga Investment Advisor;

 

o○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 Encina Lender Finance appointed to replace such key person within 30 days;

 

o○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 Encina Lender Finance appointed within 30 days.

 

Fees and Expenses. The Company paid certain fees and reimbursed Encina Lender Finance, LLC for the aggregate amount of all documented, out-of-pocket costs and expenses, including the reasonable fees and expenses of lawyers, incurred by Encina Lender Finance, LLC in connection with the Encina Credit Facility and the carrying out of any and all acts contemplated thereunder up to and as of the date of closing. These amounts totaled $1.4 million.

 

As of August 31,November 30, 2022, we had $25.0 million outstanding borrowings under the Encina Credit Facility and $233.6$242.6 million of SBA- guaranteed debentures outstanding (which are discussed below).


 

 

SBA-guaranteed debentures

 

In addition, we, through twothree wholly owned subsidiaries, sought and obtained 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 and on1958. On August 14, 2019, our wholly owned subsidiary, Saratoga Investment Corp. SBIC II LP, also received a license. On September 29, 2022, our wholly owned subsidiary, Saratoga Investment Corp. SBIC III LP (“SBIC III LP”), also received an SBIC license from the SBA. 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 licenses allows our SBIC subsidiaries to obtain leverage by issuing SBA-guaranteed debentures. SBA-guaranteed debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten-year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with 10-year maturities.

 

The SBIC LP, SBIC II LP, and SBIC III LP are regulated by the SBA. SBA regulations 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. SBIC II LP’s SBIC license provides up to $175.0 million in additional long-term capital in the form of SBA-guaranteed debentures. The SBIC LP andIII LP’s SBIC II LP are regulated bylicense provides up to $175.0 million in additional long-term capital in the SBA. As a resultform of the 2016 omnibus spending bill signed into law in December 2015,SBA-guaranteed debentures. Under current SBIC regulations, for two or more SBICs under common control, the maximum amount of SBA-guaranteedoutstanding SBA debentures that affiliated SBIC funds can have outstanding was increased from $225.0 million tocannot exceed $350.0 million subject to SBA approval.with at least $175.0 million in combined regulatory capital. Our wholly owned SBIC subsidiaries are able to borrow funds from the SBA against regulatory capital (which generally approximates equity capital in the respective SBIC) and is subject to customary regulatory requirements, including, but not limited to, a periodic examination by the SBA. With thisthe third license approval, Saratoga can grow its SBA relationship from $150.0 million to $325.0$350.0 million of committed capital.

 

We received exemptive relief from the SEC to permit us to exclude the senior securities issued by of our SBIC subsidiaries from the definition of senior securities in the asset coverage requirement applicable to the Company under the 1940 Act. This allows us increased flexibility under the asset coverage requirement by permitting us to borrow up to $325.0 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 independent directors approved of our becoming subject to a reduced minimum asset coverage ratio of 150.0% from 200% under Sections 18(a)(1) and 18(a)(2) of the 1940 Act. The 150% asset coverage ratio became effective on April 16, 2019.

 


As of August 31,November 30, 2022, our SBIC LP subsidiary had $75.0 million in regulatory capital and $67.7 million in SBA-guaranteed debentures outstanding, and our SBIC II LP subsidiary had $87.5 million in regulatory capital and $166.0$175.0 million in SBA-guaranteed debentures outstanding and SBIC III LP subsidiary had $35.0 million in regulatory capital and $0.0 million in SBA-guaranteed debentures outstanding.


 

Unsecured notes

 

In May 2013, the Company issued $48.3 million in aggregate principal amount of 7.50% fixed-rate notes due 2020 (the “2020 Notes”). 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 Inc. 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 bonds2022 Notes 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 net proceeds from the offering were used to repay all of the outstanding indebtedness under the 2020 Notes (as described above), and for general corporate purposes in accordance with our investment objective and strategies. On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.5 million, respectively, in aggregate principal amount of the $74.5 million in aggregate principal amount of the issued and outstanding 2023 Notes and are no longer listed on the NYSE.

 

On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of the 6.25% 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 in aggregate principal amount of 6.25% 2025 Notes within 30 days. 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 6.25% 2025 Notes have been capitalized and were amortized over the term of the 6.25% 2025 Notes.

 

On February 5, 2019, the Company issued an additional $20.0 million in aggregate principal amount of the 6.25% 2025 Notes for net proceeds of $19.2 million after deducting underwriting commissions of approximately $0.6 million and discount of $0.2 million. The additional 6.25% 2025 Notes were treated as a single series with the existing 6.25% 2025 Notes under the indenture and had the same terms as the existing 6.25% 2025 Notes. 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 in aggregate principal amount of 6.25% 2025 Notes within 30 days. 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 6.25% 2025 Notes have been capitalized and were amortized over the term of the 6.25% 2025 Notes.

 

On August 31, 2021, the Company redeemed $60.0 million in aggregate principal amount of the issued and outstanding 6.25% 2025 Notes at par. The 6.25% 2025 Notes were listed on the NYSE under the trading symbol of “SAF” with a par value of $25.00 per sharenote and have been delisted following the full redemption on August 31, 2021.

 

On June 24, 2020, the Company issued $37.5 million in aggregate principal amount of our 7.25% fixed-rate notes due 2025 (the “7.25% 2025 Notes”)Notes for net proceeds of $36.3 million after deducting underwriting commissions of approximately $1.2 million. Offering costs incurred were approximately $0.3 million. On July 6, 2020, the underwriters exercised their option in full to purchase an additional $5.625 million in aggregate principal amount of its 7.25% unsecured notes due 2025.2025 Notes. Net proceeds to the Company were $5.4 million after deducting underwriting commissions of approximately $0.2 million.  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 7.25% 2025 Notes have been capitalized and were amortized over the term of the 7.25% 2025 Notes.

 


On July 14, 2022, the Company redeemed $43.1 million in aggregate principal amount of the issued and outstanding 7.25% 2025 Notes. The 7.25% 2025 Notes were listed on the NYSE under the trading symbol of “SAK”, and have been delisted following the full redemption on July 14, 2022.


 

On July 9, 2020, the Company issued $5.0 million in aggregate principal amount of our 7.75% fixed-rate2025 Notes due in 2025 (the “7.75% 2025 Notes”) for net proceeds of $4.8 million after deducting underwriting commissions of approximately $0.2 million. Offering costs incurred were approximately $0.1 million. Interest on the 7.75% Notes 2025 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.75% per year, beginning August 31, 2020.year. The 7.75% Notes 2025 mature on July 9, 2025 and may be redeemed in whole or in part at any time or from time to time at our option.option, subject to a fee depending on the date of repayment. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 7.75% 2025 Notes 2025 have been capitalized and are being amortized over the term of the 7.75% 2025 Notes. The 7.75% 2025 Notes are unlisted and have a par value of $25.00 per share.note.

 

At August 31,November 30, 2022, the total 7.75% 2025 Notes outstanding was $5.0 million.

 

On December 29, 2020, the Company issued $5.0 million in aggregate principal amount of our 6.25% fixed-rate notes due in 2027 (the “6.25% Notes 2027”).2027.  Offering costs incurred were approximately $0.1 million.  Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021.year. The 6.25% Notes 2027 mature on December 29, 2027 and may be redeemed in whole or in part at any time or from time to time at our option, on or after December 29, 2024. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.1 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the 6.25% Notes 2027. The 6.25% Notes 2027 are not listed and have a par value of $25.00 per note.

 

On January 28, 2021, the Company issued $10.0 million in aggregate principal amount of the 6.25% Notes 2027 for net proceeds of $9.7 million after deducting underwriting commissions of approximately $0.3 million. Offering costs incurred were approximately $0.0 million. Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year. The 6.25% Notes 2027 mature on January 28, 2027 and commencing January 28, 2023, may be redeemed in whole or in part at any time or from time to time at our option on or after December 29, 2024.option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the 6.25% Notes 2027.

 

At August 31,November 30, 2022, the total 6.25% 2027 Notes outstanding was $15.0 million.

 

On March 10, 2021, the Company issued $50.0 million in aggregate principal amount of the 4.375% Notes 2026 for net proceeds of $49.0 million after deducting underwriting commissions of approximately $1.0 million. Offering costs incurred were approximately $0.2 million.  Interest on the 4.375% Notes 2026 is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.375% per year. The 4.375% Notes 2026 mature on February 28, 2026 and may be redeemed in whole or in part at any time on or after November 28, 2025 at par plus a “make-whole” premium, and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.2 million related to the 4.375% Notes 2026 have been capitalized and are being amortized over the term of the 4.375% Notes 2026.

 

On July 15, 2021, the Company issued an additional $125.0 million in aggregate principal amount of the Company’s 4.375% Notes 2026 (the “Additional 4.375% 2026 Notes”) for net proceeds for approximately $123.5 million, based on the public offering price of 101.00% of the aggregate principal amount of the Additional 4.375% 2026 Notes, after deducting the underwriting discount of $2.5 million and offering expenses of $0.2 million payable by the Company. The net proceeds from the offering were used to redeem all of the outstanding 6.25% 2025 Notes (as described above), and for general corporate purposes in accordance with our investment objective and strategies. The Additional 4.375% 2026 Notes were treated as a single series with the existing 4.375% 2026 Notes under the indenture and had the same terms as the existing 4.375% 2026 Notes.

 

At August 31,November 30, 2022, the total 4.375% Notes 2026 outstanding was $175.0 million.

 

On January 19, 2022, the Company issued $75.0 million in aggregate principal amount of ourthe 4.35% fixed-rate Notes due in 2027 (the “4.35% Notes 2027”) for net proceeds of $73.0 million, based on the public offering price of 99.317% of the aggregate principal amount of the 4.35% Notes 2027, after deducting the underwriting commissions of approximately $1.5 million. Offering costs incurred were approximately $0.2 million.  Interest on the 4.35% Notes 2027 is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.35% per year, beginning August 28, 2022.year. The 4.35% Notes 2027 mature on February 28, 2027 and may be redeemed in whole or in part at the Company’s option at any time prior to November 28, 2026, at par plus a “make-whole” premium, and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.7 million related to the 4.35% Notes 2027 have been capitalized and are being amortized over the term of the Notes.4.35% Notes 2027.

 


 

 

At August 31,November 30, 2022 the total 4.35% Notes 2027 outstanding was $75.0 million.

 

On April 27, 2022, the Company issued $87.5 million in aggregate principal amount of ourthe 6.00% fixed-rate notes dueNotes 2027 (the “6.00% Notes 2027”) for net proceeds of $84.8 million after deducting underwriting commissions of approximately $2.7 million. Offering costs incurred were approximately $0.1 million. On May 10, 2022, the underwriters partially exercised their option to purchase an additional $10.0 million in aggregate principal amount of itsthe 6.00% Notes 2027. Net proceeds to the Company were $9.7 million after deducting underwriting commissions of approximately $0.3 million. Interest on the 6.00% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.00% per year, beginning August 31, 2022.year. The 6.00% Notes 2027 mature on April 30, 2027 and commencing April 27, 2024, 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 $3.0$3.3 million related to the 6.00% Notes 2027 have been capitalized and are being amortized over the term of the 6.00% 2027 Notes.Notes 2027. The 6.00% Notes 2027 Notes are listed on the NYSE under the trading symbol “SAT” with a par value of $25.00 per share.note.

 

On August 15, 2022, the Company issued an additional $8.0 million in aggregate principal amount of ourthe 6.00% fixed-rate notes due 2027 (the “6.00% 2027 Notes”)Notes for net proceeds of $7.8 million, based on the public offering price of 97.80% of the aggregate principal amount of the 6.00% 2027 Notes. The Additional 6.00% 2027 Notes 2027.are treated as a single series with the existing 6.00% 2027 Notes under the indenture and had the same terms as the existing 6.00% 2027 Notes. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Additional offering costs incurred were approximately $0.03 million. Additional financing costs of $0.03 million related to the 6.00% 2027 Notes have been capitalized and are being amortized over the term of the 6.00% 2027 Notes.

 

At August 31,November 30, 2022 the total 6.00% Notes 2027 outstanding was $105.5 million.

 

AtOn September 8, 2022, the Company issued $12.0 million in aggregate principal amount of the 7.00% 2025 Notes for net proceeds of $11.6 million after deducting bond issuance discounts of approximately $0.4 million. Interest on the 7.00% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.00% per year. The 7.00% 2025 Notes mature on September 8, 2025 and commencing September 8, 2024, 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 $0.05 million related to the 7.00% 2025 Notes have been capitalized and are being amortized over the term of the 7.00% 2025 Notes.

At November 30, 2022 the total 7.00% Notes 2025 outstanding was $12.0 million.

On October 27, 2022, the Company issued $40.0 million in aggregate principal amount of the 8.00% 2027 Notes for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.1 million. On November 10, 2022, the underwriters partially exercised their option to purchase an additional $6.0 million in aggregate principal amount of the 8.00% 2027 Notes. Net proceeds to the Company were $5.8 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 8.00% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 8.00% per year, beginning February 28, 2023. The 8.00% 2027 Notes mature on October 31, 2027 and commencing October 27, 2024, 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 $1.3 million related to the 8.00% 2027 Notes have been capitalized and are being amortized over the term of the 8.00% 2027 Notes. The 8.00% 2027 Notes are listed on the NYSE under the trading symbol “SAJ” with a par value of $25.00 per note.


At November 30, 2022 the total 8.00% Notes 2027 outstanding was $46.0 million.

At November 30, 2022 and February 28, 2022, the fair value of investments, cash and cash equivalents and cash and cash equivalents, reserve accounts were as follows:

  

 August 31, 2022  February 28, 2022  November 30, 2022  February 28, 2022 
 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 $3,068   0.3% $47,258   5.4% $5,672   0.5% $47,258   5.4%
Cash and cash equivalents, reserve accounts  9,579   1.0   5,613   0.6   41,376   4.0   5,613   0.6 
First lien term loans  793,011   80.5   631,573   72.6   804,242   76.2   631,573   72.6 
Second lien term loans  23,662   4.5  44,385   5.1   23,780   4.3   44,385   5.1 
Unsecured term loans  16,841   1.8   38,030   4.4   20,599   2.0   38,030   4.4 
Structured finance securities  32,327   3.4   15,931   1.8   38,900   3.8   15,931   1.8 
Equity interests  82,096   8.5   87,648   10.1   94,513   9.2   87,648   10.1 
Total $960,584   100.0% $870,438   100.0% $1,029,082   100.0% $870,438   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 a 30-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 added to the equity ATM program. On July 11, 2019, the amount of the common stock to be offered 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. This agreement was terminated as of July 29, 2021, and as of that date, the Company had sold 3,922,018 shares for gross proceeds of $97.1 million at an average price of $24.77 for aggregate net proceeds of $95.9 million (net of transaction costs).

 

On July 30, 2021, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc. and Compass Point Research and Trading, LLC (the “Agents”), through which we may offer for sale, from time to time, up to $150.0 million of our common stock through the Agents, or to them, as principal for their account. As of August 31,November 30, 2022, the Company sold 4,840,361 shares for gross proceeds of $124.0 million at an average price of $25.61 for aggregate net proceeds of $122.4 million (net of transaction costs). During the three and sixnine months ended August 31,November 30, 2022, there were no shares sold pursuant to the equity distribution agreement with the Agents.


 

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 (the “Share Repurchase Plan”). On October 7, 2015, our board of directors extended the 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, our board of directors extended the 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, January 8, 2019 and January 7, 2020, our board of directors extended the Share Repurchase Plan for another year to October 15, 2018, January 15, 2020 and January 15, 2021, respectively, each time leaving the number of shares unchanged at 600,000 shares of its common stock. On May 4, 2020, our board of directors increased the Share Repurchase Plan to 1.3 million shares of common stock. On January 5, 2021, our board of directors extended the Shares Repurchase Plan for another year to January 15, 2022, leaving the number of shares unchanged at 1.3 million shares of common stock. On January 4, 2022, our board of directors extended the Shares Repurchase Plan for another year to January 15, 2023, leaving the number of shares unchanged at 1.3 million shares of common stock. As of August 31,November 30, 2022, the Company purchased 803,963898,033 shares of common stock, at the average price of $21.47$21.65 for approximately $17.3$19.5 million pursuant to the Share Repurchase Plan. During the three months ended August 31,November 30, 2022, the Company purchased 153,35094,071 shares of common stock, at the average price of $24.04$23.17 for approximately $3.7$2.1 million pursuant to the Share Repurchase Plan. During the sixnine months ended August 31,November 30, 2022, the Company purchased 295,527389,598 shares of common stock, at the average price of $25.11$24.64 for approximately $7.4$9.6 million pursuant to the Share Repurchase Plan.


On November 15, 2022, the Company declared a dividend of $0.68 per share payable on January 4, 2023, to common stockholders of record on December 15, 2022. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $6.8 million in cash and 53,615 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 $24.26 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on December 20, 21, 22, 23, 27, 28, 29 and 30 2022 and January 3 and 4, 2023.

 

On August 29, 2022, the Company declared a dividend of $0.54 per share payable on September 29, 2022, to common stockholders of record on September 14, 2022. Shareholders have 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 $5.3 million in cash and 52,313 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 $22.00 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on September 16, 19, 20, 21, 22, 23, 26, 27, 28 and 29, 2022.

 

On May 26, 2022, the Company declared a dividend of $0.53 per share payable on June 29, 2022, to common stockholders of record on June 14, 2022. Shareholders have 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 $5.1 million in cash and 48,590 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 $22.40 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 15, 16, 17, 21, 22, 23, 24, 27, 28 and 29, 2022.

 

On February 24, 2022, the Company declared a dividend of $0.53 per share payable on March 28, 2022, to common stockholders of record on March 14, 2022. Shareholders have 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 $5.3 million in cash and 42,825 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 $25.89 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on March 15, 16, 17, 18, 21, 22, 23, 24, 25 and 28, 2022.

 

On November 30, 2021, the Company declared a dividend of $0.53 per share payable on January 19, 2022, to common stockholders of record on January 4, 2021. Shareholders have 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 $5.3 million in cash and 41,520 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 $26.85 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on January 5, 6, 7, 10, 11, 12, 13, 14, 18 and 19, 2022.

 

On August 26, 2021, the Company declared a dividend of $0.52 per share payable on September 28, 2021, to common stockholders of record on September 14, 2021. Shareholders have 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 $4.9 million in cash and 38,016 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 $26.76$26.77 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on September 15, 16, 17, 20, 21, 22, 23, 24, 27 and 28, 2021.

 

On May 27, 2021, the Company declared a dividend of $0.44 per share payable on June 29, 2021, to common stockholders of record on June 15, 2021. Shareholders have 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 $4.1 million in cash and 33,100 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 $25.03 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 16, 17, 18, 21, 22, 23, 24, 25, 28 and 29, 2021.

  


On March 22, 2021, the Company declared a dividend of $0.43 per share payable on April 22, 2021, to common stockholders of record on April 8, 2021. Shareholders have 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 $3.9 million in cash and 38,580 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 $23.69 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on April 9,12, 13, 14, 15, 16, 19, 20, 21 and 22, 2021.


 

On January 5, 2021, our board of directors declared a dividend of $0.42 per share, which was paid on February 10, 2021, to common stockholders of record as of January 26, 2021. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.8 million in cash and 41,388 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 $21.75 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on January 28, 29 and February 1, 2, 3, 4, 5, 8, 9 and 10, 2021.

 

On October 7, 2020, our board of directors declared a dividend of $0.41 per share, which was paid on November 10, 2020, to common stockholders of record as of October 26, 2020. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.8 million in cash and 45,706 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 $17.63 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on October 28, 29, 30 and November 2, 3, 4, 5, 6, 9 and 10, 2020.

 

On July 7, 2020, the Company declared a dividend of $0.40 per share payable on August 12, 2020, to common stockholders of record on July 27, 2020. Shareholders have 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 $3.7 million in cash and 47,098 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 $16.45 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on July 30, 31 and August 3, 4, 5, 6, 7, 10, 11 and 12, 2020.

 

On January 8, 2020, the Company declared a dividend of $0.56 per share, which was paid on February 6, 2020, to common stockholders of record on January 24, 2020. 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 $5.4 million in cash and 35,682 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 $25.44 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on January 24, 27, 28, 29, 30, 31 and February 3, 4, 5 and 6, 2020.

 

On August 27, 2019, the Company declared a dividend of $0.56 per share, which was paid 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 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% 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 the 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% 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 30,79630,797 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 the 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 the DRIP. Based on shareholder elections, the dividend consisted of approximately $2.7 million in cash and 21,56221,563 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 the 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 95% of 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 95% of 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 95% of 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 95% of 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 Procedure 2010-12, 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 95% of 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 95% of 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.

 

Our asset coverage ratio, as defined in the 1940 Act, was 184.2%173.2% as of August 31,November 30, 2022 and 209.3% as of February 28, 2022.

 

Subsequent Events

 

On July 9, 2020,December 13, 2022, the Company entered into the Notes Purchase Agreement (the “Notes Purchase Agreement”) governing the issuance of its 7.75% Notes due 2025issued $52.5 million in the aggregate principal amount of $5.0 million to an institutional investor (the “Purchaser”) in a private placement. Pursuant to the terms of the Notes Purchase Agreement, upon the mutual agreement of the Company and the Purchaser, the Company may issue additionalour 8.125% fixed-rate notes with modified pricing terms, in the aggregate, up to a maximum of $50.0 million in one or more private offerings. On January 28, 2021, the Company entered into the First Supplemental Notes Purchase Agreement (the “First Supplemental Agreement”) governing the issuance of its 6.25% Notes due 2027 in(the “8.125% 2027 Notes”) for net proceeds of $50.9 million after deducting underwriting commissions of approximately $1.6 million. Offering costs incurred were approximately $0.1 million. The Company has granted the aggregate principal amount of $10.0 millionunderwriters an option to the Purchaser in a private placement. On September 8, 2022, the Company entered into the Second Supplemental Notes Purchase Agreement (the “Second Supplemental Agreement”) governing the issuance of its 7.00% Notes due 2025 (the “7.00% 2025 Notes”) in the aggregate principal amount of $12.0 million to the Purchaser in a private placement. In addition, pursuant to the Second Supplement Agreement, upon the mutual agreement of the Company and the Purchaser, the Purchaser may purchase from the Company up to an additional $8.0$7.875 million in aggregate principal amount of the 7.00% 20258.125% 2027 Notes. Interest on the 8.125% 2027 Notes by Septemberis paid quarterly in arrears on February 28, May 31, August 31 and November 30, 2022, which did not occur.at a rate of 8.125% per year, beginning February 28, 2023.  The 7.00% 20258.125% 2027 Notes were deliveredmature on December 31, 2027 and paidcommencing December 13, 2024, may be redeemed in whole or in part at any time or from time to time at our option. We expect to use the net proceeds from this offering to make investments in middle-market companies (including investments made through our SBIC subsidiaries) in accordance with our investment objective and strategies and for on September 8, 2022. Upongeneral corporate purposes. Financing costs of $1.6 million related to the issuance8.125% 2027 Notes have been capitalized and are being amortized over the term of the 7.00% 20258.125% 2027 Notes. The 8.125% 2027 Notes are listed on the outstandingNYSE under the trading symbol “SAY” with a par value of $25.00 per note.

On December 21, 2022, the underwriters fully exercised their option to purchase an additional $7.875 million in aggregate principal amount of the Company’s unsecured notes held by8.125% 2027 Notes. Net proceeds to the Purchaser under the Notes Purchase Agreement, the First Supplemental Agreement and the Second Supplemental Agreement, collectively, is $27.0Company were $7.6 million after deducting underwriting commissions of approximately $0.2 million.

 

On September 29, 2022,January 9, 2023, our board of directors extended the Company announced that it received notification fromShare Repurchase Plan for another year to January 15, 2024, increasing the Small Business Administration (the “SBA”) that the Company’s application for a third Small Business Investment Company (“SBIC”) license has been approved. The new SBIC license will provide upnumber of shares to $1751.7 million in additional long-term capital in the formshares of SBA-guaranteed debentures, subject to the issuance of a leverage commitment by the SBA. Under current SBIC regulations, for two or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $350.0 million with at least $175.0 million in combined regulatory capital.stock.

 

Contractual obligations

 

The following table shows our payment obligations for repayment of debt and other contractual obligations at August 31,November 30, 2022:

 

    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 $25,000  $      -  $25,000  $-  $-  $25,000  $       -  $25,000  $-  $- 
SBA debentures  233,660   -   15,000   33,660   185,000   242,660   -   15,000   52,660   175,000 
7.00% 2025 Notes  12,000   -   12,000   -   - 
7.75% 2025 Notes  5,000   -   5,000   -   -   5,000   -   5,000   -   - 
4.375% 2026 Notes  175,000   -   -   175,000   -   175,000   -   -   175,000   - 
4.35% 2027 Notes  75,000   -   -   75,000   -   75,000   -   -   75,000   - 
6.25% 2027 Notes  15,000   -   -   -   15,000   15,000   -   -   -   15,000 
6.00% 2027 Notes  105,500   -   -   105,500   -   105,500   -   -   105,500   - 
8.00% 2027 Notes  46,000   -   -   46,000   - 
Total Long-Term Debt Obligations $634,160  $-  $45,000  $389,160  $200,000  $701,160  $-  $57,000  $454,160  $190,000 

 


 

 

Off-balance sheet arrangements

 

As of August 31,November 30, 2022 and February 28, 2022, the Company’s off-balance sheet arrangements consisted of $90.7$77.5 million and $83.4$88.4 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 August 31,November 30, 2022 and February 28, 2022 is shown in the table below (dollars in thousands):

 

  August 31,
2022		  February 28,
2022		 
At Company’s discretion      
ActiveProspect, Inc. $10,000  $- 
Artemis Wax  3,000   3,700 
Ascend Software LLC  5,000   5,000 
Axero Holdings  -   3,000 
Davisware  2,000   2,000 
Granite Comfort  5,000   - 
JDXpert  5,000   - 
Lee’s Famous Recipe Chicken  4,000   10,000 
Netreo Holdings, LLC  -   4,000 
Pepper Palace  3,000   3,000 
Procrement Partners  -   2,800 
Saratoga Senior Loan Fund I JV LLC  15,606   17,500 
Sceptre Hospitality Resources  250   1,000 
Book4Time, Inc.  -   2,000 
Total $52,856  $54,000 
         
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required        
Ascend Software LLC $4,200  $6,500 
ARC Health  8,500   - 
Axero Holdings  -   2,000 
Axero Holdings - Revolver  500   500 
Davisware, LLC  1,000   1,000 
Exigo - DDTL  4,167   - 
Exigo - Revolver  833   - 
GDS Holdings US, Inc.  1,036   2,786 
Granite Comfort  5,000   - 
GoReact  500   2,500 
JDXpert  1,000   - 
Madison Logic - Revolver  1,084   1,084 
New England Dental Partners  4,500   4,500 
Pepper Palace - DDTL  2,000   2,000 
Pepper Palace - Revolver  2,500   2,500 
Zollege  1,000   1,000 
Lee’s Famous Recipe Chicken  -   3,000 
   37,820   29,370 
Total $90,676  $83,370 
  November 30,
2022		  February 28,
2022		 
At Company’s discretion      
ActiveProspect, Inc. $10,000  $- 
Artemis Wax Corp.  8,500   3,700 
Ascend Software, LLC  5,000   5,000 
Axero Holdings, LLC  -   3,000 
Davisware, LLC  2,000   2,000 
Granite Comfort, LP  5,000   - 
JDXpert  5,000   - 
LFR Chicken LLC  4,000   10,000 
Netreo Holdings, LLC  2,350   4,000 
Pepper Palace, Inc.  3,000   3,000 
Procurement Partners, LLC  -   2,800 
Saratoga Senior Loan Fund I JV, LLC  8,548   17,500 
Sceptre Hospitality Resources, LLC  5,000   1,000 
Book4Time, Inc.  -   2,000 
Total  58,398   54,000 
         
At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required        
Ascend Software, LLC  4,200   6,500 
ARC Health OpCo LLC  773   - 
Axero Holdings, LLC  -   2,000 
Axero Holdings, LLC - Revolver  500   500 
Davisware, LLC  -   1,000 
Exigo, LLC - Delayed Draw Term Loan  4,167   - 
Exigo, LLC - Revolver  833   - 
GDS Software Holdings, LLC  -   2,786 
Granite Comfort, LP  500   - 
GoReact  500   2,500 
JDXpert  1,000   - 
Madison Logic, Inc. - Revolver  1,084   1,084 
New England Dental Partners  -   4,500 
Pepper Palace, Inc. – Delayed Draw Term Loan  2,000   2,000 
Pepper Palace, Inc. - Revolver  2,500   2,500 
Zollege PBC  1,000   1,000 
LFR Chicken LLC  -   3,000 
   19,057   29,370 
Total $77,455  $83,370 

 

The Company believes its assets will provide adequate coverage to satisfy these unfunded commitments. As of August 31,November 30, 2022, the Company had cash and cash equivalents of $12.6$47.0 million and $25.0 million in available borrowings under the Encina Credit Facility.

 


 

 

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. In addition, U.S. and global capital markets and credit markets have experienced a higher level of stress due to the global COVID-19 pandemic, which has resulted in an increase in the level of volatility across such markets and a general decline in value of the securities held by us.

 

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 in re-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, SOFR or BSBY and the prime rate. Substantially all of our portfolio is, and we expect will continue to be, comprised of floating rate investments that utilize LIBOR. In connection withLIBOR, SOFR or BSBY. Since March 2022, the COVID-19 pandemic, the U.S. Federal Reserve and other central banks have reduced certainhas been rapidly raising interest rates and LIBOR has decreased.indicated that it would consider additional rate hikes in response to ongoing inflation concerns. In a rising interest rate environment, our cost of funds would increase, which could reduce our net investment income if there is not a corresponding increase in interest income generated by our investment portfolio. It is possible that the Federal Reserve’s tightening cycle could result the United States into a recession, which would likely decrease interest rates. A prolonged reduction in interest rates will reduce our gross investment income and could result in a decrease in our net investment income if such decreases in LIBORbase rates, such floating rates, are not offset by a corresponding increaseincreases in the spread over LIBORsuch base rate that we earn on any portfolio investments, a decrease in in our operating expenses, including with respect to our income incentive fee, or a decrease in the interest rate ofassociated with our floating interest rate liabilities tied to LIBOR. Conversely, in a rising interest rate environment, such difference could potentially increase thereby increasing our gross investment income as indicated below. In March 2022, the Federal Reserve raised interest rates by 0.25%, the first increase since December 2018 and, since then, has raised interest rates by an additional 2.00%, and indicated that it would continue to raise interest rates in response to ongoing inflation concerns.borrowings. Our interest expense is affected by fluctuations in LIBOR only on our Encina Credit Facility. In addition, substantially all of our assets and our Encina Credit Facility have LIBOR transition language to include the use of an acceptable replacement rate, such as SOFR.SOFR or BSBY. At August 31,November 30, 2022, we had $609.2$676.2 million of borrowings outstanding. In addition, there were $25.0 million borrowings outstanding under the Encina Credit Facility as of August 31,November 30, 2022.

 

We have analyzed the potential impact of changes in interest rates on interest income from investments. Assuming that our investments as of August 31,November 30, 2022 were to remain constant for a full fiscal year and no actions were taken to alter the current interest rate terms, a hypothetical change of a 1.0% increase in interest rates would cause a corresponding increase of approximately $8.1$8.6 million to our interest income. Conversely, a hypothetical change of a 1.0% decrease in interest rates would cause a corresponding decrease of approximately $7.6$8.6 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 the Encina Credit Facility, are fixed rate.

 

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 August 31,November 30, 2022.

 

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		 
  Increase (Increase) Increase Increase Increase 
Basis (Decrease) Decrease (Decrease) in Net (Decrease) in Net (Decrease) in Net 
Point in Interest in Interest Interest Investment Investment 
Change  Income  Expense  Income  Income*  Income per Share 
  ($ in thousands)      ($ in thousands)      
-100  $(7,554) $-  $(7,554) $(0.63)  $(8,587) $250  $(8,337) $(6,670) $(0.56)
-50   (3,966)  -   (3,966)  (0.33)   (4,294)  125   (4,169)  (3,335)  (0.28)
-25   (2,018)  -   (2,018)  (0.17)   (2,147)  63   (2,084)  (1,667)  (0.14)
25   2,018   -   2,018   0.17    2,147   (63)  2,084   1,667   0.14 
50   4,037   -   4,037   0.34    4,294   (125)  4,169   3,335   0.28 
100   8,073   (86)  7,987   0.66    8,587   (250)  8,337   6,670   0.56 
200   16,365   (336)  16,029   1.33    17,175   (500)  16,675   13,340   1.11 
300   24,658   (586)  24,072   2.00    25,762   (750)  25,012   20,010   1.67 
400   32,950   (836)  32,114   2.67    34,349   (1,000)  33,349   26,679   2.23 

* Adjusts Net Interest Income for the impact of the first incentive fee on Net Investment Income

 

ITEM 4. CONTROLS AND PROCEDURES

 

(a)(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 in Rule 13a-15(e) and 15d-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)(b)There have been no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) of Exchange Act) that occurred during the quarter ended August 31,November 30, 2022 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 Funding II, LLC, Saratoga Investment Corp. SBIC LP, and Saratoga Investment Corp. SBIC II LP, or Saratoga Investment Corp. SBIC III 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 Form 10-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 sixnine months ended August 31,November 30, 2022 to the risk factors discussed in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended February 28, 2022. 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

None.


 

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 Regulation S-K):

EXHIBIT INDEX

Exhibit NumberDescription
3.1(a)Articles of Incorporation of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Form 10-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 Form 8-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 Form 8-K filed August 13, 2010).
3.2Third Amended and Restated Bylaws of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 10-Q filed January 6, 2021)
4.1Specimen 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 Form N-2, File No. 333-169135, filed on September 1, 2010).
4.2Registration 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 Form 8-K filed on August 3, 2010).
4.3Dividend Reinvestment Plan (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on September 24, 2014).
4.4Form of Indenture by and between the Company and U.S. Bank National Association, as trustee (incorporated by reference to Saratoga Investment Corp.’s Pre-Effective Amendment No. 2 to the Registration Statement on Form N-2, File No. 333-186323 filed April 30, 2013).
4.5Form of Articles Supplementary Establishing and Fixing the Rights and Preferences of Preferred Stock (incorporated by reference to Saratoga Investment Corp.’s registration statement on Form N-2 Pre-Effective Amendment No. 1, File No. 333-196526, filed on December 5, 2014).
4.6FourthFifth Supplemental Indenture between the Saratoga Investment Corp. and U.S. Bank National Association, as trustee, relating to the 7.25%  Note7.75% Notes due 2025 (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 814-00732) filed on June 24, 2020).2025*
4.7Form of 7.25%Seventh Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank National Association, as trustee, relating to 6.25% Notes due 2025 (incorporated by reference to Exhibit 4.11 hereto).2027*
4.8Eighth Supplemental Indenture between the Saratoga Investment Corp. and U.S. Bank National Association, as trustee, relating to the 4.375% Note due 2026 (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 814-00732) filed on March 10, 2021).
4.9Ninth Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank National Association, as trustee, relating to the 4.375% Note due 2027 (incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 814-00732) filed on January 19, 2022).
4.10Tenth Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank Trust Company, National Association, as trustee, relating to the 6.00% Note due 2027 (incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 814-00732) filed on April 27, 2022).
4.11Eleventh Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank Trust Company, National Association, as trustee, relating to the 7.00% Notes due 2025*
4.12Twelfth Supplemental Indenture between Saratoga Investment Corp. and U.S. Bank Trust Company, National Association, as trustee, relating to the 8.00% Notes due 2027 (incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 813-00732) filed on October 27, 2022).
4.13Form of 7.75% Notes due 2025 (incorporated by reference to Exhibit 4.6 hereto).
4.14Form of 6.25% Notes due 2027 (incorporated by reference to Exhibit 4.7 hereto).
4.15Form of 4.375% Notes due 2026 (incorporated by reference to Exhibit 4.8 hereto).
4.124.16Form of 4.375% Notes due 2027 (incorporated by reference to Exhibit 4.9 hereto).
4.134.17Form of 6.00% Notes due 2027 (incorporated by reference to Exhibit 4.10 hereto).
4.18Form of 7.00% Notes due 2027 (incorporated by reference to Exhibit 4.11 hereto).
4.19Form of 8.00% Notes due 2027 (incorporated by reference to Exhibit 4.12 hereto).
10.1Investment 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 Form 8-K filed on August 3, 2010).
10.2Custodian Agreement dated March 21, 2007 between GSC Investment LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Form 10-Q for the quarterly period ended May 31, 2007).
10.3Administration 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 Form 8-K filed on August 3, 2010).


 

10.4Trademark 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 Form 8-K filed on August 3, 2010).
10.5Form 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 Form N-2 filed on January 12, 2007).
10.6Amended and Restated Indenture, dated as of November 15, 2016, among Saratoga Investment Corp. CLO 2013-1, Ltd., Saratoga Investment Corp. CLO 2013-1, Inc. and U.S. Bank National Association. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-216344, filed on February 28, 2017).
10.7Amended and Restated Collateral Management Agreement, dated February 26, 2021, by and between Saratoga Investment Corp. and Saratoga Investment Corp. CLO 2013-1, Ltd. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on March 4, 2021).
10.9Credit and Security Agreement, dated as of October 4, 2021, by and among Saratoga Investment Funding II, LLC, Saratoga Investment Corp., as collateral manager and equityholder,equity holder, the lenders party thereto, Encina Lender Finance, LLC, as administrative agent for the secured parties and the collateral agent, and U.S. Bank National Association, as collateral custodian for the secured parties thereto and as collateral administrator (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 7, 2021).
10.10Equity Pledge Agreement, dated as of October 4, 2021, by and between Saratoga Investment Corp. and Encina Lender Finance, LLC, as collateral agent for the secured parties thereto (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 7, 2021).
10.11Loan Sale and Contribution Agreement, dated as of October 4, 2021, by and between Saratoga Investment Corp., as seller, and Saratoga Investment Funding II LLC, as purchaser (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 7, 2021).
10.12Saratoga Senior Loan Fund I JV LLC Limited Liability Company Agreement, dated October 26, 2021, by and between Saratoga Investment Corp. and TJHA JV I LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 27, 2021).
10.13

Note Purchase Agreement by and between Saratoga Investment Corp. and the purchaser party thereto, dated July 9, 2020.*2020 (incorporated by reference to Saratoga Investment Corp.’s Quarterly Report on Form 10-Q filed on October 4, 2022).

10.14

First Supplemental Note Purchase Agreement by and between Saratoga Investment Corp. and the purchaser party thereto, dated January 28, 2021. *2021 (incorporated by reference to Saratoga Investment Corp.’s Quarterly Report on Form 10-Q filed on October 4, 2022).

10.15

Second Supplemental Note Purchase Agreement by and between Saratoga Investment Corp. and the purchaser party thereto, dated September 8, 2022. *2022 (incorporated by reference to Saratoga Investment Corp.’s Quarterly Report on Form 10-Q filed on October 4, 2022).

14 

Code of Ethics of the Company adopted under Rule 17j-1 (incorporated by reference to Amendment No.7 to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-138051, filed on March 22, 2007).

31.1*Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
31.2*Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) 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)
101.INS*Inline XBRL Instance Document.
101.SCH**Inline XBRL Taxonomy Extension Schema Document.
101.CAL**Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF**Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB**Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE**Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104**Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

 

*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: October 4, 2022January 10, 2023By:/s/ CHRISTIAN L. OBERBECK
Christian L. Oberbeck
Chief Executive Officer
By:/s/ HENRI J. STEENKAMP
Henri J. Steenkamp
Chief Financial Officer and
Chief Compliance Officer

 

 

130150

 

0001377936 sar:AugustThirtyOneTwoThousandTwentyTwoMemberBook4TimeIncMember sar:ASTROONEACQUISITIONCORPORATIONMember 2022-03-01 2022-08-31 0001377936SaratogaCLOMember sar:EndureDigitalIncMember sar:FebruaryTwentyEightTwoThousandTwentyTwoMemberTotalHospitalityHotelMember 2021-03-01 2022-02-28 0001377936 sar:TotalDistributaleEarningsLossMember 2020-02-29PriSoAcquisitionCorporationMember sar:NovemberThirtyTwoThousandTwentyTwoMember 2022-03-01 2022-11-30 iso4217:USD xbrli:shares