Consolidated Statements of Assets and Liabilities

	June 30, 2021			December 31, 2020
ASSETS	(unaudited)
Investments at fair value
Non-controlled/non-affiliated investments (amortized cost of $512,940,700 and $521,483,006 respectively)	$	497,021,783		$	472,813,820
Controlled/affiliated investments (amortized cost of $180,295,779 and $179,520,933 respectively)		134,324,944			131,172,660
Investments at fair value		631,346,727			603,986,480
Cash and cash equivalents		54,134,677			65,301,216
Interest receivable from investments		4,884,583			3,943,980
Unsettled trades receivable		556,554			2,541,500
Prepaid expenses and other assets		589,036			1,934,866
Total assets	$	691,511,577		$	677,708,042

LIABILITIES
Revolving credit facilities payable (net of deferred financing costs of $0 and $659,266, respectively) (Note 5)	$	124,200,000		$	144,340,734
Deferred tax liability		4,214,716			2,390,596
Base management fees payable (Note 6)		3,025,363			2,967,857
Accounts payable and accrued expenses		2,462,370			1,406,175
Payable for Company shares redeemed		2,173,629			—
Taxes Payable		680,947			—
Administrator fees payable (Note 6)		549,544			401,260
Interest payable		374,521			449,420
Unsettled trades payable		—			11,061
Total liabilities		137,681,090			151,967,103

Commitments (Note 10)

NET ASSETS
Common shares, par value $0.001 per share, 250,000,000 common shares authorized, 102,080,498 and 102,630,605 common shares issued and outstanding, respectively		102,081			102,631
Capital in excess of par value		847,731,674			850,737,609
Total distributable earnings/(loss)		(294,003,268	)		(325,099,301	)
Total net assets		553,830,487			525,740,939
Total liabilities and net assets	$	691,511,577		$	677,708,042
NET ASSET VALUE PER COMMON SHARE	$	5.43		$	5.12

September 30, 2017 December 31, 2016
ASSETS (unaudited)
Investments at fair value
Non-controlled/non-affiliated investments (amortized cost of $969,097,460 and $921,626,572, respectively) $ 926,968,867
$ 885,400,856
Controlled/affiliated investments (amortized cost of $145,702,585 and $104,855,866, respectively) 140,093,225
97,743,466
Investments at fair value 1,067,062,092
983,144,322
Cash and cash equivalents 82,699,636
99,400,794
Cash collateral on total return swap (Note 5) 68,000,000
79,620,942
Interest receivable from non-controlled/non-affiliated investments 9,093,911
10,251,559
Receivable due on total return swap (Note 5) 1,003,667
1,289,163
Receivable for Company shares sold 376,741
533,123
Interest receivable from controlled/affiliated investments 316,056
1,028,321
Unsettled trades receivable 278,837
368,819
Prepaid expenses and other assets 215,617
201,932
Due from affiliate (Note 7) —
7,892,273
Total assets $ 1,229,046,557
$ 1,183,731,248

LIABILITIES
Revolving credit facilities payable (net of deferred financing costs of $5,747,434 and $4,340,533, respectively) (Note 6) $ 414,252,566
$ 385,659,467
Unsettled trades payable 38,922,992
466,727
Unrealized depreciation on total return swap (Note 5) 5,483,594
13,647,330
Base management fees payable (Note 7) 5,378,233
5,138,107
Accounts payable and accrued expenses 1,480,258
1,839,497
Incentive fees payable (Note 7) 1,323,999
1,405,419
Interest payable 780,037
1,230,530
Administrator fees payable (Note 7) 745,816
850,678
Deferred tax liability 429,991
244,622
Due to affiliate (Note 7) —
135,784
Total liabilities $ 468,797,486
$ 410,618,161

Commitments (Note 11)

NET ASSETS
Common shares, par value $0.001 per share, 250,000,000 common shares authorized, 96,300,123 and 94,666,418 common shares issued and outstanding, respectively $ 96,300
$ 94,666
Capital in excess of par value 843,971,257
830,738,206
Accumulated distribution in excess of net realized gain/(loss) from investments and total return swap (43,284,104 ) (20,333,057 )
Accumulated undistributed net investment income 13,030,556
19,756,740
Net unrealized depreciation on investments and total return swap, net of provision for taxes of $343,391 and $54,205, respectively (53,564,938 ) (57,143,468 )
Total net assets 760,249,071
773,113,087
Total liabilities and net assets $ 1,229,046,557
$ 1,183,731,248

NET ASSET VALUE PER COMMON SHARE $ 7.89
$ 8.17

See accompanying notes to consolidated financial statements.

F-1

Table of Contents

Sierra Income Corporation

Consolidated Statements of Operations

(unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
INVESTMENT INCOME
Interest and dividend income from investments
Non-controlled/non-affiliated investments:
Cash	$	11,943,800		$	10,682,719		$	21,071,686		$	18,008,572
Payment-in-kind		545,892			472,844			982,353			1,009,889
Controlled/affiliated investments:
Cash		1,977,492			(28,696	)		3,881,206			1,817,381
Payment-in-kind		94,388			115,628			188,557			230,391
Total interest and dividend income		14,561,572			11,242,495			26,123,802			21,066,233
Fee income (Note 11)		409,724			312,935			766,482			434,633
Interest from cash and cash equivalents		10,266			144,024			15,933			1,375,399
Total investment income		14,981,562			11,699,454			26,906,217			22,876,265

EXPENSES
Base management fees (Note 6)		3,025,363			2,944,745			6,091,760			6,196,196
Interest and financing expenses		1,397,723			3,454,940			3,084,782			7,742,603
General and administrative expenses		2,238,942			8,307,229			3,850,569			10,278,197
Professional fees		1,934,321			11,089,264			2,658,503			11,207,318
Administrator expenses (Note 6)		582,279			669,025			1,225,899			1,390,657
Offering costs		5,156			1,914			5,156			5,157
Total expenses		9,183,784			26,467,117			16,916,669			36,820,128

Income tax expense		685,309			—			1,938,320			—

NET INVESTMENT INCOME/(LOSS)		5,112,469			(14,767,663	)		8,051,228			(13,943,863	)

REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) from non-controlled/non-affiliated investments		(4,334,926	)		(8,265,767	)		(4,301,895	)		(8,280,680	)
Net realized gain/(loss) from controlled/affiliated investments		161,607			—			199,371			232,392
Net change in unrealized appreciation/(depreciation) on non-controlled/non-affiliated investments		21,227,490			22,547,805			32,749,077			(66,450,775	)
Net change in unrealized appreciation/(depreciation) on controlled/affiliated investments		(1,121,699	)		9,456,310			2,377,438			(22,068,330	)
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments		(2,632,090	)		(293,783	)		(1,824,121	)		(52,848	)
Net realized and unrealized gain/(loss) on investments		13,300,382			23,444,565			29,199,870			(96,620,241	)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	18,412,851		$	8,676,902		$	37,251,098		$	(110,564,104	)

WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS/(LOSS) PER COMMON SHARE	$	0.18		$	0.08		$	0.36		$	(1.08	)
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME/(LOSS) PER COMMON SHARE	$	0.05		$	(0.14	)	$	0.08		$	(0.14	)
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (NOTE 9)		102,380,357			102,856,314			102,575,026			102,785,734
DISTRIBUTIONS DECLARED PER COMMON SHARE	$	0.03		$	—		$	0.06		$	0.11

Three Months Ended
September 30, Nine Months Ended
September 30,
2017 2016 2017 2016
INVESTMENT INCOME (unaudited) (unaudited) (unaudited) (unaudited)
Interest from investments
Non-controlled/non-affiliated investments:
Cash $ 22,258,477
$ 20,819,609
$ 62,982,816
$ 60,057,210
Payment-in-kind 738,691
236,353
3,262,162
3,722,884
Controlled/affiliated investments:
Cash 2,529,894
1,602,501
7,006,228
4,186,500
Payment-in-kind 835,813
—
1,170,790
—
Total interest income 26,362,875
22,658,463
74,421,996
67,966,594
Fee income (Note 12) 1,228,131
2,464,034
4,068,295
5,157,787
Interest from cash and cash equivalents 49,732
26,164
85,263
47,834
Total investment income 27,640,738
25,148,661
78,575,554
73,172,215
EXPENSES
Base management fees (Note 7) 5,378,233
5,040,490
16,036,068
14,790,696
Interest expenses 4,434,712
3,433,081
12,177,674
10,095,690
General and administrative expenses 1,295,253
1,655,295
3,783,340
4,331,001
Incentive fees (Note 7) 1,323,999
2,372,355
1,872,805
7,876,060
Administrator expenses (Note 7) 745,817
780,166
2,333,968
1,997,067
Offering costs 545,959
703,075
1,367,343
2,074,035
Professional fees 415,045
943,864
1,647,704
1,809,418
Total expenses 14,139,018
14,928,326
39,218,902
42,973,967
Expense support reimbursement (Note 7) —
(5,389,627 ) —
(16,093,129 )
Total expenses, net of expense support reimbursement 14,139,018
9,538,699
39,218,902
26,880,838
NET INVESTMENT INCOME 13,501,720
15,609,962
39,356,652
46,291,377
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) from non-controlled/non-affiliated investments (5,275,413 ) (11,230,075 ) (21,215,145 ) (11,065,348 )
Net realized gain/(loss) on total return swap (Note 5) 3,134,709
761,010
(1,735,902 ) 4,845,649
Net change in unrealized appreciation/(depreciation) on non-controlled/non-affiliated investments (7,466,665 ) 11,929,831
(5,902,877 ) 4,202,318
Net change in unrealized appreciation/(depreciation) on controlled/affiliated investments 1,377,608
(1,567,498 ) 1,503,040
(1,724,856 )
Net change in unrealized appreciation/(depreciation) on total return swap (Note 5) (2,032,534 ) 5,159,214
8,163,736
9,188,445
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments 148,949
172,128
(185,369 ) 92,495
Net realized and unrealized gain/(loss) on investments (10,113,346 ) 5,224,610
(19,372,517 ) 5,538,703
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 3,388,374
$ 20,834,572
$ 19,984,135
$ 51,830,080
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE $ 0.04
$ 0.23
$ 0.21
$ 0.58
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER COMMON SHARE $ 0.14
$ 0.17
$ 0.41
$ 0.52
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (NOTE 10) 96,474,233
92,516,572
96,078,793
89,015,100
DISTRIBUTIONS DECLARED PER COMMON SHARE $ 0.16
$ 0.20
$ 0.48
$ 0.60

See accompanying notes to the consolidated financial statements.

F-2

Table of Contents

Sierra Income Corporation

Consolidated Statements of Changes in Net Assets

(unaudited)

	Common Stock
				Par			Paid in Capital			Distributable			Total
	Shares			Amount			in Excess of Par			Earnings			Net Assets
Balance at March 31, 2021		102,839,640		$	102,840		$	851,722,263		$	(309,342,023	)	$	542,483,080
Net increase (decrease) in net assets resulting from operations:
Net investment income/(loss)		—			—			—			5,112,469			5,112,469
Net realized gain (loss) on investments		—			—			—			(4,173,319	)		(4,173,319	)
Net change in unrealized appreciation/(depreciation) on investments		—			—			—			20,105,791			20,105,791
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments		—			—			—			(2,632,090	)		(2,632,090	)
Shareholder distributions:
Issuance of common shares pursuant to distribution reinvestment plan		202,889			203			1,016,188			—			1,016,391
Repurchase of common shares		(962,031	)		(962	)		(5,006,777	)		—			(5,007,739	)
Distributions from earnings		—			—			—			(3,074,096	)		(3,074,096	)
Total increase/(decrease) for the three months ended June 30, 2020		(759,142	)		(759	)		(3,990,589	)		15,338,755			11,347,407
Balance at June 30, 2021		102,080,498		$	102,081		$	847,731,674		$	(294,003,268	)	$	553,830,487

Balance at December 31, 2020		102,630,605		$	102,631		$	850,737,609		$	(325,099,301	)	$	525,740,939
Net increase/(decrease) in net assets resulting from operations:
Net investment income/(loss)		—			—			—			8,051,228			8,051,228
Net realized gain/(loss) on investments		—			—			—			(4,102,524	)		(4,102,524	)
Net change in unrealized appreciation/(depreciation) on investments		—			—			—			35,126,515			35,126,515
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments		—			—			—			(1,824,121	)		(1,824,121	)
Shareholder distributions:
Issuance of common shares pursuant to distribution reinvestment plan		414,375			414			2,042,163			—			2,042,577
Repurchase of common shares		(964,482	)		(964	)		(5,048,098	)		—			(5,049,062	)
Distributions from earnings		—			—			—			(6,155,065	)		(6,155,065	)
Total increase/(decrease) for the six months ended June 30, 2021		(550,107	)		(550	)		(3,005,935	)		31,096,033			28,089,548
Balance at June 30, 2021		102,080,498		$	102,081		$	847,731,674		$	(294,003,268	)	$	553,830,487

Balance at March 31, 2020		102,867,551		$	102,868		$	872,688,536		$	(408,540,080	)	$	464,251,324
Net increase (decrease) in net assets resulting from operations:
Net investment income/(loss)		—			—			—			(14,767,663	)		(14,767,663	)
Net realized gain (loss) on investments		—			—			—			(8,265,767	)		(8,265,767	)
Net change in unrealized appreciation/(depreciation) on investments		—			—			—			32,004,115			32,004,115
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments		—			—			—			(293,783	)		(293,783	)
Shareholder distributions:
Repurchase of common shares		(34,086	)		(35	)		(153,693	)		—			(153,728	)
Distributions from earnings		—			—			—			(15,578	)		(15,578	)
Total increase/(decrease) for the three months ended June 30, 2021		(34,086	)		(35	)		(153,693	)		8,661,324			8,507,596
Balance at June 30, 2020		102,833,465		$	102,833		$	872,534,843		$	(399,878,756	)	$	472,758,920

Balance at December 31, 2019		102,282,366		$	102,282		$	869,567,685		$	(278,607,246	)	$	591,062,721
Net increase/(decrease) in net assets resulting from operations:
Net investment income/(loss)		—			—			—			(13,943,863	)		(13,943,863	)
Net realized gain/(loss) on investments		—			—			—			(8,048,288	)		(8,048,288	)
Net change in unrealized appreciation/(depreciation) on investments		—			—			—			(88,519,105	)		(88,519,105	)
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments		—			—			—			(52,848	)		(52,848	)
Shareholder distributions:
Issuance of common shares pursuant to distribution reinvestment plan		710,046			711			3,842,420			—			3,843,131
Repurchase of common shares		(158,947	)		(160	)		(875,262	)		—			(875,422	)
Distributions from earnings		—			—			—			(10,707,406	)		(10,707,406	)
Total increase/(decrease) for the six months ended June 30, 2020		551,099			551			2,967,158			(121,271,510	)		(118,303,801	)
Balance at June 30, 2020	$	102,833,465		$	102,833		$	872,534,843		$	(399,878,756	)	$	472,758,920

Nine Months Ended September 30,
2017 2016
INCREASE/(DECREASE) FROM OPERATIONS (unaudited) (unaudited)
Net investment income $ 39,356,652
$ 46,291,377
Net realized gain/(loss) on investments (21,215,145 ) (11,065,348 )
Net realized gain/(loss) on total return swap (Note 5) (1,735,902 ) 4,845,649
Net change in unrealized appreciation/(depreciation) on investments (4,399,837 ) 2,477,462
Net change in unrealized appreciation/(depreciation) on total return swap (Note 5) 8,163,736
9,188,445
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments (185,369 ) 92,495
Net increase/(decrease) in net assets resulting from operations 19,984,135
51,830,080
SHAREHOLDER DISTRIBUTIONS (Note 2)
Distributions from net investment income (46,082,836 ) (53,464,883 )
Distributions from return of capital —
—
Distributions from net realized gains —
—
Net decrease in net assets from shareholder distributions (46,082,836 ) (53,464,883 )
COMMON SHARE TRANSACTIONS
Issuance of common shares, net of underwriting costs 14,278,662
88,652,295
Issuance of common shares pursuant to distribution reinvestment plan 20,964,661
25,356,219
Repurchase of common shares (22,008,638 ) (23,367,870 )
Net increase in net assets resulting from common share transactions 13,234,685
90,640,644
Total increase/(decrease) in net assets (12,864,016 ) 89,005,841
Net assets at beginning of period 773,113,087
674,124,099
Net assets at end of period⁽¹⁾
$ 760,249,071
$ 763,129,940

Net asset value per common share $ 7.89
$ 8.14
Common shares outstanding, beginning of period 94,666,418
82,623,649
Issuance of common shares 1,753,686
10,840,303
Issuance of common shares pursuant to distribution reinvestment plan 2,598,710
3,117,085
Repurchase of common shares (2,718,691 ) (2,864,430 )
Common shares outstanding, end of period 96,300,123
93,716,607

~~(1) Net assets at end of period include accumulated undistributed net investment income of $13,030,556 and $14,004,840 for the nine months ended September 30, 2017 and 2016, respectively.~~

See accompanying notes to consolidated financial statements.

F-3

Table of Contents

Sierra Income Corporation

Consolidated Statements of Cash Flows

(unaudited)

	Six Months Ended June 30,
	2021			2020
Cash flows from operating activities
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS:	$	37,251,098		$	(110,564,104	)
ADJUSTMENT TO RECONCILE NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES:
Payment-in-kind interest income		(1,170,910	)		(1,240,280	)
Net amortization of premium on investments		(295,526	)		(174,522	)
Amortization of deferred financing costs		659,266			1,579,789
Net realized (gain)/loss on investments		4,102,524			8,048,288
Net change in unrealized (appreciation)/depreciation on investments		(35,126,515	)		88,519,105
Purchases and originations		(80,042,210	)		(66,572,171	)
Proceeds from sale of investments and principal repayments		85,172,390			64,582,263
(Increase)/decrease in operating assets:
Unsettled trades receivable		1,984,946			(709,532	)
Interest receivable from investments		(940,603	)		4,265,188
Deferred transaction costs		—			14,993,778
Prepaid expenses and other assets		1,345,830			1,156,532
Increase/(decrease) in operating liabilities:
Unsettled trades payable		(11,061	)		247,500
Base management fee payable		57,506			(1,115,773	)
Transaction costs payable		—			(426,172	)
Accounts payable and accrued expenses		1,056,195			(639,338	)
Administrator fees payable		148,284			287,101
Interest payable		(74,899	)		(1,003,027	)
Taxes Payable		680,947			—
Deferred tax liability		1,824,120			52,848
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES		16,621,382			1,287,473
Cash flows from financing activities:
Repayments of revolving credit facility		(20,800,000	)		(134,286,928	)
Payment of cash distributions		(4,112,488	)		(6,864,275	)
Financing costs paid		—			(299,525	)
Repurchase of common shares		(2,875,433	)		(721,694	)
NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES		(27,787,921	)		(142,172,422	)
TOTAL INCREASE/(DECREASE) IN CASH		(11,166,539	)		(140,884,949	)
CASH, CASH EQUIVALENTS AT BEGINNING OF PERIOD		65,301,216			225,316,656
CASH, CASH EQUIVALENTS AT END OF PERIOD	$	54,134,677		$	84,431,707
Supplemental Information:
Cash paid during the period for interest	$	2,500,415		$	7,165,841
Supplemental non-cash information:
Issuance of common shares in connection with distribution reinvestment plan	$	2,042,577		$	3,843,131

Nine Months Ended September 30,
2017 2016
(unaudited) (unaudited)
Cash flows from operating activities
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: $ 19,984,135
$ 51,830,080
ADJUSTMENT TO RECONCILE NET INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS TO NET CASH USED IN OPERATING ACTIVITIES:

Payment-in-kind interest income (4,432,952 ) (3,722,884 )
Net amortization of premium on investments (883,648 ) (632,275 )
Amortization of deferred financing costs 1,101,849
964,047
Net realized (gain)/loss on investments 21,215,145
11,065,348
Net change in unrealized (appreciation)/depreciation on investments 4,399,837
(2,477,462 )
Net change in unrealized (appreciation)/depreciation on total return swap (Note 5) (8,163,736 ) (9,188,445 )
Purchases and originations (357,837,423 ) (222,987,384 )
Proceeds from sale of investments and principal repayments 253,621,271
184,383,171
(Increase)/decrease in operating assets:
Cash collateral on total return swap (Note 5) 11,620,942
(1,980,176 )
Unsettled trades receivable 89,982
(927,603 )
Due from affiliate (Note 7) 7,892,273
(2,118,170 )
Interest receivable from non-controlled/non-affiliated investments 1,157,648
288,780
Interest receivable from controlled/affiliated investments 712,265
—
Receivable for Company shares sold 156,382
(1,619,744 )
Receivable due on total return swap (Note 5) 285,496
1,493,253
Prepaid expenses and other assets (13,685 ) (101,581 )
Increase/(decrease) in operating liabilities:
Unsettled trades payable 38,456,265
2,720,000
Management fee payable 240,126
354,394
Accounts payable and accrued expenses (359,239 ) (87,645 )
Incentive fees payable (81,420 ) 577,087
Administrator fees payable (104,862 ) 262,235
Interest payable (450,493 ) (331,691 )
Deferred tax liability 185,369
(92,495 )
Due to affiliate (Note 7) (135,784 ) (559,749 )
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES (11,344,257 ) 7,111,091
Cash flows from financing activities:
Borrowings under revolving credit facility 225,000,000
85,000,000
Repayments of revolving credit facility (195,000,000 ) (95,000,000 )
Proceeds from issuance of common stock, net of underwriting costs 14,278,662
88,652,295
Payment of cash distributions (25,118,175 ) (28,108,664 )
Financing costs paid (2,508,750 ) (2,401,032 )
Repurchase of common shares (22,008,638 ) (23,367,870 )
NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES (5,356,901 ) 24,774,729
TOTAL INCREASE/(DECREASE) IN CASH (16,701,158 ) 31,885,820
CASH AT BEGINNING OF PERIOD 99,400,794
93,658,142
CASH AT END OF PERIOD $ 82,699,636
$ 125,543,962
Supplemental Information:
Cash paid during the period for interest $ 12,628,167
$ 10,427,381
Supplemental non-cash information:
Non-cash purchase of investments $ 22,491,328
$ 12,007,442
Non-cash sale of investments 22,491,328
12,007,442
Payment-in-kind interest income 4,432,952
3,722,884
Amortization of deferred financing costs 1,101,849
964,047
Net amortization of premium on investments 883,648
632,275
Issuance of common shares in connection with distribution reinvestment plan 20,964,661
25,356,219

See accompanying notes to consolidated financial statements.

F-4

Table of Contents

Sierra Income Corporation

Consolidated Schedule of Investments

As of ~~September~~June 30, ~~2017~~

2021

(unaudited)

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Non-controlled/non-affiliated investments –	89.7%

AAAHI Acquisition Corporation	Transportation: Consumer	Senior Secured First Lien Term Loan LIBOR + 8.250%, 1.000% Floor ⁽⁴⁾ ^{(5) (6)}	12/10/2023	$	7,233,985	$	6,853,763	$	5,425,489		1.0	%
					7,233,985		6,853,763		5,425,489
Alpine SG, LLC	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor ⁽⁴⁾ ^{(5) (11)}	11/16/2022		1,262,051		1,238,587		1,269,497		0.2	%
		Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.750%, 1.000% Floor ^{(4) (5)}	6/1/2028		2,410,036		2,361,836		2,361,836		0.4	%
		Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.750%, 1.000% Floor ^{(4) (5)}	11/16/2022		6,165,725		6,165,653		5,982,603		1.1	%
		Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor ^{(4) (5)}	11/16/2022		12,529,258		12,520,344		12,157,139		2.2	%
					22,367,070		22,286,420		21,771,075
Amerijet Holdings, Inc.	Transportation: Cargo	Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(5) (7)}	7/15/2021		2,540,018		2,540,018		2,540,018		0.5	%
					2,540,018		2,540,018		2,540,018
AMMC CLO 22, Limited Series 2018-22A	Multi-Sector Holdings	Subordinated Notes 13.510% effective yield ⁽⁸⁾ ^{(9) (10)}	4/25/2031		7,222,000		5,189,030		4,887,850		0.9	%
					7,222,000		5,189,030		4,887,850
AMMC CLO 23, Ltd. Series 2020-23A	Multi-Sector Holdings	Subordinated Notes 14.426% effective yield ⁽⁸⁾ ^{(9) (10)}	10/17/2031		2,000,000		1,640,734		1,599,800		0.3	%
					2,000,000		1,640,734		1,599,800
Apidos CLO XXIV, Series 2016-24A	Multi-Sector Holdings	Subordinated Notes 14.832% effective yield ⁽⁵⁾ ⁽⁸⁾ ^{(9) (10)}	7/20/2027		18,357,647		9,683,843		9,336,699		1.7	%
					18,357,647		9,683,843		9,336,699
Arrow International Inc.	Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan LIBOR + 7.250%, 1.250% Floor ⁽⁴⁾	12/21/2025		10,000,000		10,000,000		10,046,000		1.8	%
					10,000,000		10,000,000		10,046,000
Aviation Technical Services, Inc.	Aerospace & Defense	Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(4) (5)}	3/31/2022		25,828,344		25,828,344		23,898,967		4.3	%
					25,828,344		25,828,344		23,898,967

F-5

Company⁽¹⁾
Industry
Type of Investment⁽¹⁸⁾
Maturity Par
Amount Cost Fair Value
% of Net Assets⁽²⁾
Non-controlled/non-affiliated investments– 121.9%
$ 760,249,071
AAAHI Acquisition Corporation Transportation: Consumer
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor^{(3) (4)}
12/15/2021 $ 7,143,867
$ 7,143,867
$ 7,143,867
0.9%

Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor^{(3) (4) (5)}
12/14/2018 300,093
300,093
300,093
0.0%
7,443,960
7,443,960
7,443,960

Advanced Diagnostic Holdings, LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor^{(4) (8)}
12/11/2020 14,776,538
14,776,538
14,776,538
1.9%
14,776,538
14,776,538
14,776,538

Alpha Media LLC Media: Broadcasting & Subscription
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor⁽⁸⁾
2/25/2022 6,643,240
6,411,924
6,432,649
0.8%
6,643,240
6,411,924
6,432,649

American Dental Partners, Inc. Healthcare & Pharmaceuticals
Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor^{(3) (4)}
9/25/2023 7,250,000
7,250,000
7,337,000
1.0%
7,250,000
7,250,000
7,337,000

Amerijet Holdings, Inc. Transportation: Cargo
Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor^{(4) (8)}
7/15/2021 15,468,750
15,468,750
15,742,547
2.1%
15,468,750
15,468,750
15,742,547

AMMC CLO 17, Limited Series 2015-17A Multi-Sector Holdings
Subordinated Note 18.446% effective yield^{(1) (6) (9)(10)}
11/15/2027 5,000,000
3,535,402
3,954,500
0.5%
5,000,000
3,535,402
3,954,500

Anaren, Inc. Aerospace & Defense
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.000% Floor⁽³⁾
8/18/2021 10,000,000
9,938,799
10,000,000
1.3%
10,000,000
9,938,799
10,000,000

Answers Finance, LLC High Tech Industries
Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor⁽⁸⁾
4/15/2021 1,291,760
1,291,760
1,291,760
0.2%

Senior secured second lien term loans LIBOR + 4.400%, Cash, 0.100% Cap, 4.500% PIK⁽⁸⁾
9/15/2021 2,008,641
2,008,641
2,008,641
0.3%

Equity/Warrants ⁽⁶⁾
—
5,426,955
5,426,195
0.7%
3,300,401
8,727,356
8,726,596

APCO Holdings, Inc. Automotive
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor^{(4) (8)}
1/31/2022 4,209,932
4,112,112
4,209,932
0.6%
4,209,932
4,112,112
4,209,932

Apidos CLO XXIV, Series 2016-24A Multi-Sector Holdings
Subordinated Note 12.341% effective yield^{(1) (4) (6) (9) (10)}
7/20/2027 18,357,647
14,614,178
13,817,801
1.8%
18,357,647
14,614,178
13,817,801

Asurion, LLC Banking, Finance, Insurance & Real Estate
Senior Secured Second Lien Term Loan LIBOR + 6.000%, 1.000% Floor^{(3) (4)}
8/4/2025 5,950,000
5,950,000
6,069,000
0.8%
5,950,000
5,950,000
6,069,000

Avantor Performance Materials Holdings, LLC Chemicals, Plastics & Rubber
Senior Secured First Lien Term Loans LIBOR + 4.000%, 1.000% Floor^{(4) (8)}
3/11/2024 3,990,000
3,987,526
3,990,000
0.5%

Senior Secured Second Lien Term Loans LIBOR + 8.250%, 1.000% Floor^{(4) (8)}
3/10/2025 1,000,000
1,000,000
1,020,000
0.1%
4,990,000
4,987,526
5,010,000

Aviation Technical Services, Inc. Aerospace & Defense
Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor^{(3) (4) (11)}
3/31/2022 25,000,000
25,000,000
25,000,000
3.3%
25,000,000
25,000,000
25,000,000

Table of Contents

Company⁽¹⁾
Industry
Type of Investment⁽¹⁸⁾
Maturity Par
Amount Cost Fair Value
% of Net Assets⁽²⁾
Barry's Bootcamp Holdings, LLC Services: Consumer
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(3) (4) (5)}
7/14/2022 8,571,429
8,571,429
8,571,429
1.1%
8,571,429
8,571,429
8,571,429

Birch Communications Inc. Telecommunications
Senior Secured First Lien Term Loan LIBOR + 7.250%, 1.000% Floor^{(4) (8)}
7/17/2020 13,253,612
13,121,193
12,977,937
1.7%
13,253,612
13,121,193
12,977,937

Black Angus Steakhouses, LLC Hotel, Gaming & Leisure
Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor^{(3) (4) (5) (11)}
4/24/2020 940,899
940,899
773,712
0.1%

Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor^{(3) (4) (11)}
4/24/2020 19,252,232
19,252,232
18,522,573
2.4%
20,193,131
20,193,131
19,296,285

Brand Energy & Infrastructure Services, Inc. Construction & Building
Senior Secured First Lien Term Loan LIBOR + 4.250%, 1.000% Floor^{(4) (8)}
6/21/2024 6,000,000
6,029,160
6,028,800
0.8%
6,000,000
6,029,160
6,028,800

Brundage-Bone Concrete Pumping, Inc. Construction & Building
Senior Secured First Lien Note 10.375%⁽⁹⁾
9/1/2021 7,500,000
7,593,577
7,889,250
1.0%
7,500,000
7,593,577
7,889,250

Central States Dermatology Services, LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loans LIBOR + 6.500%, 1.000% Floor^{(4) (5) (8)}
4/20/2022 2,859,310
2,859,310
2,859,310
0.4%
2,859,310
2,859,310
2,859,310

Charming Charlie LLC Retail
Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor, 1.000% PIK⁽³⁾
12/24/2019 7,908,947
7,918,162
6,448,955
0.8%
7,908,947
7,918,162
6,448,955

Checkers Holdings, Inc. Hotel, Gaming & Leisure
Senior Secured First Lien Term Loan LIBOR + 4.250%, 1.000% Floor⁽³⁾
4/25/2024 6,982,500
6,952,913
6,912,675
0.9%
6,982,500
6,952,913
6,912,675

CP Opco, LLC Services: Consumer
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor, PIK^{(3) (4) (12)}
4/1/2019 219,589
209,515
59,728
0.0%
��
Senior Secured First Lien Term Loan LIBOR + 9.500%, 1.000% Floor, PIK^{(3) (4) (12)}
4/1/2019 1,603,881
717,016
—
0.0%

Preferred Units LIBOR+9.500%, 1.000% Floor, PIK^(4)(5)(1²⁾
—
—
—
0.0%

Common Units ^{(4) (6) (7)}
—
—
—
0.0%
1,823,470
926,531
59,728

CPI Holdings, Inc. Aerospace & Defense
Senior Secured Second Lien Term Loans LIBOR + 7.250%, 1.000% Floor^{(4) (8)}
7/28/2025 12,345,000
12,298,911
12,283,275
1.6%
12,345,000
12,298,911
12,283,275

CSP Technologies North America, LLC Containers, Packaging & Glass
Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor^{(3) (4)}
1/31/2022 4,961,562
4,961,562
4,959,081
0.7%
4,961,562
4,961,562
4,959,081

CSTN Merger Sub Inc. Chemicals, Plastics & Rubber
Senior Secured First Lien Note 6.750%^{(4) (9) (14)}
8/15/2024 4,950,000
4,950,000
4,930,200
0.6%
4,950,000
4,950,000
4,930,200

Deliver Buyer, Inc. Services: Business
Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor⁽³⁾
4/26/2024 2,992,500
2,974,286
2,962,575
0.4%
2,992,500
2,974,286
2,962,575

DHISCO Electronic Distribution, Inc. Hotel, Gaming & Leisure
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.500% Floor^{(4) (8)}
11/10/2019 2,503,214
2,503,214
2,503,214
0.3%

Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.500% Floor, PIK^{(4) (8)}
11/10/2019 9,207,947
9,207,947
9,207,947
1.2%

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Brook & Whittle Holding Corp.	Containers, Packaging & Glass	Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.250%, 1.000% Floor ^{(4) (5)}	10/17/2024		699,633		697,401		699,633		0.1	%
		Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.250%, 1.000% Floor ^{(4) (5)}	10/17/2024		2,974,786		2,965,295		2,974,786		0.5	%
		Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor ^{(4) (5)}	10/17/2024		2,086,380		2,086,380		2,086,380		0.4	%
					5,760,799		5,749,076		5,760,799
Cardenas Markets, LLC	Retail	Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor	6/3/2027		2,000,000		1,980,000		1,971,000		0.4	%
					2,000,000		1,980,000		1,971,000
CM Finance SPV LLC	Banking, Finance, Insurance & Real Estate	Subordinated Notes 3.000% ⁽⁵⁾ ^{(6) (12)}	6/24/2021		35,600		35,600		—		—	%
					35,600		35,600		—
CPI International, Inc.	Aerospace & Defense	Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor ^{(5) (7)}	7/28/2025		8,575,302		8,560,621		8,022,195		1.4	%
					8,575,302		8,560,621		8,022,195
CT Technologies Intermediate Holdings, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ^{(5) (7)}	12/16/2025		3,990,000		3,972,165		3,997,581		0.7	%
					3,990,000		3,972,165		3,997,581
DataOnline Corp.	High Tech Industries	Revolving Credit Facility LIBOR + 6.250%, 1.000% Floor⁽⁴⁾ ^{(5) (11)}	11/13/2025		1,821,429		1,821,429		1,791,214		0.3	%
		Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor ^{(4) (5)}	11/13/2025		14,775,000		14,775,000		14,566,672		2.6	%
					16,596,429		16,596,429		16,357,886
Dryden 43 Senior Loan Fund, Series 2016-43A	Multi-Sector Holdings	Subordinated Notes 10.240% effective yield ^{(5) (8)} ^{(9) (10)}	7/20/2029		3,620,000		2,452,768		2,318,248		0.4	%
					3,620,000		2,452,768		2,318,248
Dryden 49 Senior Loan Fund, Series 2017-49A	Multi-Sector Holdings	Subordinated Notes 10.225% effective yield ^{(5) (8)} ^{(9) (10)}	7/18/2030		17,233,288		11,807,420		11,053,431		2.0	%
					17,233,288		11,807,420		11,053,431
Envision Healthcare Corporation	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 3.750% ^{(5) (7)}	10/10/2025		48,750		34,365		41,764		—	%
					48,750		34,365		41,764
Friedrich Holdings, Inc.	Construction & Building	Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor ^{(5) (7)}	2/7/2023		9,634,784		9,634,784		9,583,720		1.7	%
					9,634,784		9,634,784		9,583,720

F-6

Company⁽¹⁾
Industry
Type of Investment⁽¹⁸⁾
Maturity Par
Amount Cost Fair Value
% of Net Assets⁽²⁾

Senior Secured First Lien Term Loan LIBOR + 10.250%, 1.500% Floor, PIK^{(4) (8) (12)}
11/10/2019 7,969,999
7,257,481
3,984,999
0.5%

Senior Secured First Lien Term Loan LIBOR + 11.250%, 1.500% Floor, PIK^{(4) (8) (12)}
11/10/2019 7,472,575
2,940,892
—
0.0%

Common Units, Class A ^{(4) (6)(7)}
—
769,231
—
0.0%
27,153,735
22,678,765
15,696,160

Drew Marine Partners, LP Transportation: Cargo
Senior Secured Second Lien Term Loan LIBOR + 7.000%, 1.000% Floor⁽³⁾
5/19/2021 10,000,000
10,051,092
10,000,000
1.3%
10,000,000
10,051,092
10,000,000

Dryden 38 Senior Loan Fund, Series 2015-38A Multi-Sector Holdings
Subordinated Note 15.522% effective yield^{(1) (6) (9) (10)}
7/15/2027 7,000,000
4,896,524
4,965,800
0.7%
7,000,000
4,896,524
4,965,800

Dryden 43 Senior Loan Fund, Series 2016-43A Multi-Sector Holdings
Subordinated Note 13.198% effective yield^{(1) (4) (6) (9) (10)}
7/20/2029 3,620,000
2,937,310
2,812,378
0.4%
3,620,000
2,937,310
2,812,378

Dryden 49 Senior Loan Fund, Series 2017-49A Multi-Sector Holdings
Subordinated Note 16.175% effective yield^{(1) (4) (6) (9) (10)}
7/18/2030 17,233,288
15,213,374
15,213,374
2.0%
17,233,288
15,213,374
15,213,374

Dynamic Energy Services International LLC Energy: Oil & Gas
Senior Secured First Lien Term Loan 13.500% PIK + LIBOR^{(4) (8)}
6/6/2018 9,579,554
9,579,554
8,154,117
1.1%
9,579,554
9,579,554
8,154,117

Elite Comfort Solutions LLC Chemicals, Plastics & Rubber
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(5) (8)}
1/15/2021 9,778,689
9,778,689
9,778,689
1.3%
9,778,689
9,778,689
9,778,689

Engineered Machinery Holdings, Inc. Capital Equipment
Senior Secured Second Lien Term Loans LIBOR + 6.250%, 1.000% Floor^{(3) (4)}
7/18/2025 2,010,638
1,990,853
1,990,532
0.3%

Senior Secured Second Lien Term Loans LIBOR + 7.250%, 1.000% Floor^{(3) (4) (5)}
7/18/2025 28,724
28,724
26,330
0.0%
2,039,362
2,019,577
2,016,862

First Boston Construction Holdings, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Note 12.000%⁽⁴⁾
12/31/2020 6,585,000
6,585,000
6,631,095
0.9%

Preferred Equity ^{(4) (6) (7)}
—
1,646,250
1,646,250
0.2%
6,585,000
8,231,250
8,277,345

FKI Security Group, LLC Capital Equipment
Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor^{(4) (8)}
3/30/2020 11,656,250
11,656,250
11,656,250
1.5%
11,656,250
11,656,250
11,656,250

Friedrich Holdings, Inc. Construction & Building
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor^{(4) (8)}
2/7/2023 13,806,751
13,806,751
13,936,534
1.8%
13,806,751
13,806,751
13,936,534

Frontier Communications Corp. Telecommunications
Senior Secured First Lien Note 10.500%^{(6) (9)}
9/15/2022 2,000,000
2,000,000
1,745,000
0.2%
2,000,000
2,000,000
1,745,000

Genex Holdings, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loan LIBOR + 4.250%, 1.000% Floor⁽³⁾
5/28/2021 4,152,657
4,102,377
4,124,419
0.5%

Senior Secured Second Lien Term Loan LIBOR + 7.750%, 1.000% Floor⁽⁸⁾
5/30/2022 9,500,000
9,522,302
9,387,900
1.2%
13,652,657
13,624,679
13,512,319

GK Holdings, Inc. Services: Business
Senior Secured Second Lien Term Loan LIBOR + 10.250%, 1.000% Floor⁽³⁾
1/20/2022 10,000,000
10,000,000
9,913,000
1.3%
10,000,000
10,000,000
9,913,000

Table of Contents

Company⁽¹⁾
Industry
Type of Investment⁽¹⁸⁾
Maturity Par
Amount Cost Fair Value
% of Net Assets⁽²⁾
Green Field Energy Services, Inc. Energy: Oil & Gas
Senior Secured First Lien Note 13.000%^{(4)(6) (9) (12)}
11/15/2016 766,616
754,616
122,658
0.0%

Warrants ^{(4) (6) (7)}
—
29,000
—
0.0%
766,616
783,616
122,658

Harbortouch Payments, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loan LIBOR + 4.750%, 1.000% Floor^{(3) (4)}
10/13/2023 4,962,500
4,974,499
4,962,500
0.7%
4,962,500
4,974,499
4,962,500

HBC Holdings LLC Wholesale
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(3) (4)}
3/30/2020 12,487,500
12,487,500
12,422,565
1.6%
12,487,500
12,487,500
12,422,565

Heligear Acquisition Co. Aerospace & Defense
Senior Secured First Lien Note 10.250%^{(4) (9)}
10/15/2019 15,000,000
15,000,000
15,358,500
2.0%
15,000,000
15,000,000
15,358,500

High Ridge Brands Co. Consumer Goods: Non-Durable
Senior Secured First Lien Note 8.875%^{(4) (9)}
3/15/2025 2,000,000
2,000,000
1,916,200
0.3%
2,000,000
2,000,000
1,916,200

Holland Acquisition Corp. Energy: Oil & Gas
Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor⁽³⁾
5/29/2018 4,515,605
4,498,197
3,216,465
0.4%
4,515,605
4,498,197
3,216,465

Hylan Datacom & Electrical LLC Construction & Building
Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor^{(4) (8)}
7/25/2021 15,258,137
15,258,137
15,410,718
2.0%
15,258,137
15,258,137
15,410,718

Ignite Restaurant Group, Inc. Hotel, Gaming & Leisure
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor^{(3)(6) (12)}
2/13/2019 8,385,496
8,342,264
2,516,487
0.3%
8,385,496
8,342,264
2,516,487

IHS Intermediate, Inc. Services: Business
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.000% Floor⁽³⁾
7/20/2022 25,000,000
25,000,000
25,000,000
3.3%
25,000,000
25,000,000
25,000,000

Imagine! Print Solutions, LLC Media: Advertising, Printing & Publishing
Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor^{(3) (4) (13)}
6/21/2023 8,950,000
8,821,302
8,815,750
1.2%
8,950,000
8,821,302
8,815,750

Impact Sales, LLC Services: Business
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor^{(3) (4) (5)}
12/30/2021 4,866,114
4,866,114
4,905,882
0.6%
4,866,114
4,866,114
4,905,882

Interflex Acquisition Company, LLC Containers, Packaging & Glass
Senior Secured First Lien Term Loans LIBOR + 8.000%, 1.000% Floor^{(4) (8)}
08/18/2022 14,318,750
14,318,750
14,318,750
1.9%
14,318,750
14,318,750
14,318,750

Invision Diversified, LLC Services: Business
Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor^{(4) (8) (11)}
6/30/2020 24,022,685
24,022,685
24,262,912
3.2%
24,022,685
24,022,685
24,262,912

IOP Monroe Acquisition, Inc. Capital Equipment
Senior Secured First Lien Term Loan LIBOR + 5.500%, 1.000% Floor^{(4) (5) (8)}
4/1/2022 987,500
987,500
987,500
0.1%
987,500
987,500
987,500

Isola USA Corp. High Tech Industries
Senior Secured First Lien Term Loan LIBOR + 8.250%, 1.000% Floor^{(3) (12) (13)}
11/29/2018 5,453,747
5,490,447
4,742,033
0.6%
5,453,747
5,490,447
4,742,033

Keystone Acquisition Corp. Healthcare & Pharmaceuticals
Senior Secured Second Lien Term Loan LIBOR + 9.250%, 1.000% Floor^{(3) (4) (13)}
5/1/2025 7,000,000
6,866,063
6,860,000
0.9%
7,000,000
6,866,063
6,860,000

L&S Plumbing Partnership, Ltd. Construction & Building
Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor^{(3) (4)}
2/15/2022 11,796,875
11,796,875
11,895,969
1.6%
11,796,875
11,796,875
11,895,969

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Glass Mountain Pipeline Holdings, LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan LIBOR + 4.500%, 1.000% Floor ⁽⁵⁾ ^{(6) (7)}	12/23/2024		48,375		24,273		13,787		—	%
					48,375		24,273		13,787
Golden West Packaging Group LLC	Forest Products & Paper	Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor ^{(5) (7)}	6/20/2023		1,323,073		1,323,073		1,302,698		0.2	%
					1,323,073		1,323,073		1,302,698
Holland Acquisition Corp.	Energy: Oil & Gas	Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor ⁽⁴⁾ ^{(6) (12)}	5/29/2020		3,754,497		3,634,434		—		—	%
					3,754,497		3,634,434		—
Hylan Datacom & Electrical LLC	Construction & Building	Senior Secured First Lien Term Loan LIBOR + 10.000%, 1.000% Floor ^{(4) (5)}	7/25/2022		15,545,534		15,545,534		12,436,427		2.2	%
					15,545,534		15,545,534		12,436,427
Impact Group, LLC	Services: Business	Senior Secured First Lien Term Loan LIBOR + 7.370%, 1.000% Floor ^{(4) (5)}	6/27/2023		5,641,623		5,641,623		5,641,623		1.0	%
					5,641,623		5,641,623		5,641,623
Innovative XCessories & Services, LLC	Automotive	Senior Secured First Lien Term Loan LIBOR + 5.200%, 1.000% Floor ^{(5) (14)}	3/5/2027		2,961,554		2,937,375		2,967,181		0.5	%
					2,961,554		2,937,375		2,967,181
Interflex Acquisition Company, LLC	Containers, Packaging & Glass	Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(5) (7)}	8/18/2022		11,189,828		11,182,573		11,189,828		2.0	%
					11,189,828		11,182,573		11,189,828
Iqor US Inc.	Services: Business	Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor ^{(5) (7)}	11/19/2024		2,723,720		2,676,988		2,785,003		0.5	%
		Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor ⁽⁷⁾	11/19/2025		7,373,495		7,373,495		7,267,316		1.3	%
		Equity - 158,959 Shares ⁽¹³⁾			—		1,907,509		2,130,051		0.4	%
					10,097,215		11,957,992		12,182,370
Isagenix International, LLC	Wholesale	Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor ^{(4) (5)}	6/16/2025		1,710,840		1,682,536		1,389,202		0.3	%
					1,710,840		1,682,536		1,389,202
Isola USA Corp.	High Tech Industries	Senior Secured Second Lien Term Loan LIBOR + 9.500%, 1.000% Floor, PIK ⁽⁴⁾ ^{(6) (11)}	1/2/2023		11,882,396		6,958,657		8,911,797		1.6	%
		Common Units - 10,283,782 units ⁽¹³⁾			—		—		—		—	%
					11,882,396		6,958,657		8,911,797
Ivanti Software, Inc.	High Tech Industries	Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(5) (7)}	12/1/2028		6,000,000		6,000,000		5,970,000		1.1	%
					6,000,000		6,000,000		5,970,000
JFL-WCS Partners, LLC	Environmental Industries	Common Units - 70,412 units ^{(5) (13)}			—		88,159		5,069,664		0.9	%
					—		88,159		5,069,664
JFL-NGS Partners, LLC	Environmental Industries	Preferred units - 6,375,000 units 12.500%			—		6,556,485		9,243,750		1.7	%
		Common Units - 3,252.95 units ⁽¹³⁾			—		1,125,000		2,992,714		0.5	%
					—		7,681,485		12,236,464

F-7

Company⁽¹⁾
Industry
Type of Investment⁽¹⁸⁾
Maturity Par
Amount Cost Fair Value
% of Net Assets⁽²⁾
Livingston International Inc. Transportation: Cargo
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.250% Floor^{(1) (3) (6) (13)}
4/17/2020 2,658,504
2,656,071
2,605,068
0.3%
2,658,504
2,656,071
2,605,068

Loar Group Inc. Aerospace & Defense
Senior Secured Second Lien Term Loan LIBOR + 9.250%, 1.000% Floor⁽⁸⁾
7/12/2022 15,000,000
15,000,000
15,300,000
2.0%
15,000,000
15,000,000
15,300,000

LSF9 Atlantis Holdings, LLC Retail
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor^{(4) (8)}
5/1/2023 11,378,438
11,285,388
11,402,334
1.5%
11,378,438
11,285,388
11,402,334

LTCG Holdings Corp. Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor⁽³⁾
6/6/2020 2,838,571
2,831,497
2,716,513
0.4%
2,838,571
2,831,497
2,716,513

Magnetite XIX, Limited Multi-Sector Holdings
Subordinated Note LIBOR + 7.610%^{(1) (3) (6) (9) (10)}
7/17/2030 2,000,000
1,875,000
1,875,000
0.2%

Subordinated Note effective yield 14.525%^{(1) (4) (6) (9) (10)}
7/17/2030 13,730,209
12,256,271
12,255,585
1.6%
15,730,209
14,131,271
14,130,585

Nathan's Famous Inc. Beverage & Food
Senior Secured First Lien Note 10.000% ⁽⁶⁾
3/15/2020 7,000,000
7,000,000
7,333,900
1.0%
7,000,000
7,000,000
7,333,900

Nation Safe Drivers Holdings, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured Second Lien Term Loan LIBOR + 8.000%, 2.000% Floor^{(3) (4)}
9/29/2020 20,676,479
20,676,479
20,676,479
2.7%
20,676,479
20,676,479
20,676,479

New Media Holdings II, LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor^{(3) (4) (13)}
6/4/2020 15,917,083
15,906,377
15,917,083
2.1%
15,917,083
15,906,377
15,917,083

Novetta Solutions, LLC High Tech Industries
Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor⁽³⁾
10/16/2023 11,000,000
10,912,965
10,688,700
1.4%
11,000,000
10,912,965
10,688,700

Nuspire, LLC High Tech Industries
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(3) (4) (5)}
11/8/2022 6,310,000
6,310,000
6,310,000
0.8%
6,310,000
6,310,000
6,310,000

Omnitracs, Inc. Telecommunications
Senior Secured Second Lien Term Loan LIBOR + 7.750%, 1.000% Floor⁽³⁾
5/25/2021 7,000,000
7,009,593
7,000,000
0.9%
7,000,000
7,009,593
7,000,000

Oxford Mining Company, LLC Metals & Mining
Senior Secured First Lien Term Loan LIBOR + 8.500%, 0.750% Floor, 3.000% PIK^{(3) (4)}
12/31/2018 12,441,670
12,441,670
12,441,670
1.6%

Senior Secured First Lien Term Loan LIBOR + 8.500%, 0.750% Floor, 3.000% PIK^{(3) (4)}
12/31/2018 8,685,661
8,685,661
8,685,661
1.1%
21,127,331
21,127,331
21,127,331

Path Medical, LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan LIBOR + 9.500%, 1.000% Floor^{(3) (4)}
10/11/2021 15,020,737
14,512,340
15,100,346
2.0%

Warrants ^{(4) (7)}
—
669,709
111,251
0.0%
15,020,737
15,182,049
15,211,597

Payless Holdings LLC Retail
Equity/Warrants^{(6) (7)}
—
543,120
543,152
0.1%
—
543,120
543,152

Petco Animal Supplies, Inc. Retail
Senior Secured First Lien Term Loan LIBOR + 3.000%, 1.000% Floor^{(3) (13)}
1/26/2023 1,989,899
1,842,819
1,637,488
0.2%
1,989,899
1,842,819
1,637,488

PetroChoice Holdings, Inc. Chemicals, Plastics & Rubber
Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor^{(3) (4) (11)}
9/3/2023 9,000,000
9,000,000
9,000,000
1.2%

Table of Contents

Company⁽¹⁾
Industry
Type of Investment⁽¹⁸⁾
Maturity Par
Amount Cost Fair Value
% of Net Assets⁽²⁾
9,000,000
9,000,000
9,000,000

Preferred Proppants, LLC Energy: Oil & Gas
Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor⁽³⁾
7/27/2020 6,797,322
5,522,444
6,248,098
0.8%
6,797,322
5,522,444
6,248,098

Press Ganey Holdings, Inc Healthcare & Pharmaceuticals
Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor⁽⁸⁾
10/21/2024 13,000,000
13,088,767
13,044,200
1.7%
13,000,000
13,088,767
13,044,200

PT Network, LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(3) (4) (5)}
11/30/2021 5,781,667
5,781,667
5,843,517
0.8%
5,781,667
5,781,667
5,843,517

Reddy Ice Corporation Beverage & Food
Senior Secured Second Lien Term Loan LIBOR + 9.500%, 1.250% Floor^{(3) (4)}
10/1/2019 2,000,000
2,000,000
1,896,200
0.2%
2,000,000
2,000,000
1,896,200

Research Now Group, Inc. Services: Business
Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor⁽³⁾
3/18/2022 15,000,000
15,000,000
15,000,000
2.0%
15,000,000
15,000,000
15,000,000

Resolute Investment Managers, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor^{(3) (13)}
4/30/2023 6,000,000
5,913,767
6,000,000
0.8%
6,000,000
5,913,767
6,000,000

Rhombus Cinema Holdings, LP Media: Diversified & Production
Preferred Equity 10.000% PIK^{(4) (6)}
—
4,584,207
5,530,911
0.7%

Equity ^{(4) (6) (7)}
—
3,162,793
2,917,139
0.4%
—
7,747,000
8,448,050

SavATree, LLC Environmental Industries
Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor^{(4) (5) (8)}
6/2/2022 2,881,667
2,881,667
2,881,667
0.4%
2,881,667
2,881,667
2,881,667

SFP Holding, Inc. Construction & Building
Senior Secured First Lien Term Loans LIBOR + 6.250%, 1.000% Floor^{(3) (4) (5)}
9/1/2022 4,277,778
4,277,778
4,277,778
0.6%

Equity^{(4) (6) (7)}
—
400,000
400,000
0.1%
4,277,778
4,677,778
4,677,778

Ship Supply Acquisition Corporation Services: Business
Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor^{(3) (4)}
7/31/2020 22,500,000
22,500,000
21,584,250
2.8%
22,500,000
22,500,000
21,584,250

Simplified Logistics, LLC Services: Business
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(3) (4)}
2/28/2022 7,462,500
7,462,500
7,534,886
1.0%
7,462,500
7,462,500
7,534,886

Sizzling Platter, LLC Hotel, Gaming & Leisure
Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor⁽⁸⁾
4/28/2020 15,000,000
15,000,000
15,000,000
2.0%
15,000,000
15,000,000
15,000,000

SMART Financial Operations, LLC Retail
Senior Secured First Lien Term Loan LIBOR + 10.000%, 1.000% Floor^{(3) (4) (5)}
11/22/2021 3,700,000
3,700,000
3,798,000
0.5%

Equity ^{(4) (6) (7)}
—
1,000,000
1,050,000
0.1%
3,700,000
4,700,000
4,848,000

Southwest Dealer Services, Inc. Automotive
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor^{(3) (4)}
6/2/2022 4,869,375
4,869,375
4,869,375
0.6%
4,869,375
4,869,375
4,869,375

SRS Software, LLC High Tech Industries
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor^{(3) (4) (5)}
2/17/2022 19,402,500
19,402,500
19,571,302
2.6%
19,402,500
19,402,500
19,571,302

Starfish Holdco LLC High Tech Industries
Senior Secured Second Lien Term Loans LIBOR + 9.000%, 1.000% Floor^{(3) (4)}
8/18/2025 4,000,000
3,940,462
3,940,000
0.5%

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
K&N Parent, Inc.	Automotive	Senior Secured First Lien Term Loan LIBOR + 4.750%, 1.000% Floor ⁽⁷⁾	10/20/2023		7,985,597		7,666,174		7,682,145		1.4	%
		Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor ⁽⁷⁾	10/21/2024		2,000,000		1,733,573		1,678,800		0.3	%
					9,985,597		9,399,747		9,360,945
Keystone Acquisition Corp.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor ^{(4) (5)}	5/1/2024		1,774,910		1,734,493		1,743,849		0.3	%
		Senior Secured Second Lien Term Loan LIBOR + 9.250%, 1.000% Floor ^{(4) (5)}	5/1/2025		7,000,000		6,930,548		6,865,600		1.2	%
					8,774,910		8,665,041		8,609,449
KNB Holdings Corporation	Consumer Goods: Durable	Senior Secured First Lien Term Loan LIBOR + 5.500%, 1.000% Floor ⁽⁷⁾	4/26/2024		1,959,459		1,475,893		1,763,514		0.3	%
					1,959,459		1,475,893		1,763,514
Lifestyle Intermediate II, LLC	Consumer Goods: Durable	Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor ^{(5) (11)}	1/26/2026		3,901,177		3,901,177		3,901,177		0.7	%
					3,901,177		3,901,177		3,901,177
LogMeIn, Inc.	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 4.750%, 1.000% Floor ^{(5) (7)}	8/31/2027		1,990,000		1,965,323		1,986,816		0.4	%
					1,990,000		1,965,323		1,986,816
Magnetite XIX, Limited	Multi-Sector Holdings	Subordinated Notes LIBOR + 8.770% ^{(4) (8)} ^{(9) (10)}	4/17/2034		5,250,000		5,092,500		5,250,000		0.9	%
		Subordinated Notes 10.563% effective yield ^{(5) (8)} ^{(9) (10)}	7/17/2030		13,730,209		8,691,428		8,702,206		1.6	%
					18,980,209		13,783,928		13,952,206
Novetta Solutions, LLC	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ^{(4) (5)}	10/17/2022		1,552,564		1,523,928		1,546,819		0.3	%
		Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(4) (5)}	10/16/2023		9,058,824		9,024,952		8,912,071		1.6	%
					10,611,388		10,548,880		10,458,890
Offen Inc.	Transportation: Cargo	Senior Secured First Lien Term Loan LIBOR + 5.000% ^{(5) (7)}	6/21/2026		3,936,353		3,908,162		3,911,948		0.7	%
					3,936,353		3,908,162		3,911,948
Path Medical, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 13.000%, 1.000% Floor, PIK ^{(4) (5)} ^{(6) (7)}	10/11/2021		11,531,613		8,860,931		—		—	%
		Senior Secured First Lien Term Loan LIBOR + 9.500%, 1.000% Floor, PIK ^{(4) (5)} ^{(6) (7)}	10/11/2021		8,371,833		8,153,509		7,116,058		1.3	%
		Warrants - 36,716 warrants ^{(5) (13)}	1/9/2027		—		669,709		—		—	%
					19,903,446		17,684,149		7,116,058
PetroChoice Holdings, Inc.	Chemicals, Plastics & Rubber	Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor ^{(4) (5)}	8/21/2023		9,000,000		9,000,000		8,241,300		1.5	%
					9,000,000		9,000,000		8,241,300
Polymer Solutions Group Holdings, LLC	Chemicals, Plastics & Rubber	Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor ^{(5) (7)}	1/1/2023		1,047,621		1,047,621		1,034,002		0.2	%
					1,047,621		1,047,621		1,034,002
Proppants Holdings, LLC	Energy: Oil & Gas	Common Units - 1,506,254 units ⁽¹³⁾			—		890,481		18,828
		Common Units - 161,852 units ⁽¹³⁾			—		8,832		—		—	%
					—		899,313		18,828
PT Network, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 5.500%, 1.000% Floor, 2.00% PIK ^{(5) (14)}	11/30/2023		8,115,129		7,829,553		8,028,297		1.4	%
		Membership Units - 1.441 units ^{(5) (13)}			—		—		—		—	%
					8,115,129		7,829,553		8,028,297
RA Outdoors, LLC	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 6.750%, 1.000% Floor ⁽⁵⁾ ^{(7) (11)}	4/8/2026		18,765,432		18,765,432		18,577,778		3.4	%
					18,765,432		18,765,432		18,577,778

F-8

Company⁽¹⁾
Industry
Type of Investment⁽¹⁸⁾
Maturity Par
Amount Cost Fair Value
% of Net Assets⁽²⁾
4,000,000

3,940,462
3,940,000

Survey Sampling International, LLC Services: Business
Senior Secured Second Lien Term Loan LIBOR + 9.000%, 1.000% Floor^{(3) (4)}
12/16/2021 24,000,000
24,000,000
24,000,000
3.2%
24,000,000
24,000,000
24,000,000

TCH-2 Holdings, LLC Hotel, Gaming & Leisure
Senior Secured Second Lien Term Loan LIBOR + 7.750%, 1.000% Floor^{(8) (13)}
11/6/2021 3,636,364
3,601,422
3,672,727
0.5%
3,636,364
3,601,422
3,672,727

Techniplas, LLC Automotive
Senior Secured First Lien Note 10.000%^{(9) (14)}
5/1/2020 6,000,000
6,000,000
4,189,800
0.6%
6,000,000
6,000,000
4,189,800

The Garretson Resolution Group, Inc. Services: Business
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(3) (4)}
5/24/2021 9,437,500
9,406,086
9,496,956
1.2%
9,437,500
9,406,086
9,496,956

Touchtunes Interactive Networks, Inc. Media: Diversified & Production
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.000% Floor^{(3) (4) (13)}
5/27/2022 7,500,000
7,500,000
7,462,500
1.0%
7,500,000
7,500,000
7,462,500

Transocean Phoenix 2 Ltd. Energy: Oil & Gas
Senior Secured First Lien Note 7.750%^{(4) (9) (14)}
10/15/2024 7,125,000
7,018,130
7,664,363
1.0%
7,125,000
7,018,130
7,664,363

Truco Enterprises, LP Beverage & Food
Senior Secured First Lien Term Loan LIBOR + 7.220%, 1.000% Floor^{(4) (8)}
4/26/2021 9,776,362
9,776,362
9,776,362
1.3%
9,776,362
9,776,362
9,776,362

True Religion Apparel, Inc. Retail
Senior Secured Second Lien Term Loan LIBOR + 10.000%, 1.000% Floor^{(3) (12)}
1/30/2020 4,000,000
3,918,977
—
0.0%
4,000,000
3,918,977
—

U.S. Auto Sales Inc. Banking, Finance, Insurance & Real Estate
Senior Secured Second Lien Term Loan LIBOR + 11.750%, 1.000% Floor^{(4) (8) (11)}
6/8/2020 5,500,000
5,500,000
5,544,550
0.7%
5,500,000
5,500,000
5,544,550

U.S. Well Services, LLC Energy: Oil & Gas
Warrants ^{(6) (7)}
2/21/2019 —
173
—
0.0%
—
173
—

Valence Surface Technologies, Inc. Aerospace & Defense
Senior Secured First Lien Term Loan LIBOR + 5.500%, 1.000% Floor^{(3) (4)}
6/13/2019 4,135,134
4,125,602
4,083,031
0.5%
4,135,134
4,125,602
4,083,031

Velocity Pooling Vehicle, LLC Automotive
Senior Secured First Lien Term Loans LIBOR + 4.000%, 1.000% Floor^{(4) (15)}
5/14/2021 1,683,230
958,901
938,401
0.1%

Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor^{(4) (15)}
5/13/2022 20,625,000
18,636,527
3,506,250
0.5%
22,308,230
19,595,428
4,444,651

Verso Corporation Media: Advertising, Printing & Publishing
Common Stock ^{(7) (16)}
—
2,238,108
949,331
0.1%
—
2,238,108
949,331

VOYA CLO 2016-2, LTD. Multi-Sector Holdings
Subordinated Note 11.488% effective yield^{(1) (4) (6) (9) (10)}
7/19/2028 22,842,661
19,065,140
16,417,021
2.2%
22,842,661
19,065,140
16,417,021

Watermill-QMC Holdings, Corp. Automotive
Partnership Interest ^{(4) (6) (7)}
—
902,277
1,170,254
0.2%
—
902,277
1,170,254

YRC Worldwide Inc. Transportation: Cargo
Senior Secured First Lien Term Loans LIBOR + 7.500%, 1.000% Floor⁽³⁾
7/26/2022 10,620,778
10,374,269
10,370,127
1.4%
10,620,778
10,374,269
10,370,127

Table of Contents

Company⁽¹⁾
Industry
Type of Investment⁽¹⁸⁾
Maturity Par
Amount Cost Fair Value
% of Net Assets⁽²⁾
Z Gallerie, LLC Retail
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(4) (8)}
10/8/2020 4,646,901
4,618,125
4,646,901
0.6%
4,646,901
4,618,125
4,646,901

Total non-controlled/non-affiliated investments

$969,097,460 $926,968,867 121.9%

Controlled/affiliated investments– 18.4%⁽¹⁷⁾

AAR Intermediate Holdings, LLC Energy: Oil & Gas
Senior Secured First Lien Term Loans LIBOR + 5.000%, 1.000% Floor^{(3) (4) (5)}
9/30/2021 3,144,481
3,144,481
3,144,481
0.4%

Senior Secured First Lien Term Loans LIBOR + 8.000%, 1.000% Floor, PIK ^{(3) (4)}
9/30/2021 6,911,202
5,848,310
6,911,202
0.9%

Membership Units ^{(4) (6) (7)}
—
—
—
0.0%
10,055,683
8,992,791
10,055,683

Access Media Holdings, LLC Media: Broadcasting & Subscription
Senior Secured First Lien Term Loan 5.000%, 5.000% PIK⁽⁴⁾
7/22/2020 7,297,959
7,297,959
7,297,959
1.0%

Common Stock ^{(4) (6) (7)}
—
—
—
0.0%

Preferred Equity Series A ^{(4) (6) (7)}
—
1,400,000
—
0.0%

Preferred Equity Series AA ^{(4) (6) (7)}
—
700,000
—
0.0%

Preferred Equity Series AAA ^{(4) (6) (7)}
—
317,800
158,900
0.0%
7,297,959
9,715,759
7,456,859

Capstone Nutrition, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan LIBOR + 12.500%, 1.000% Floor, PIK^{(3) (4) (12)}
9/25/2020 28,071,914
22,489,086
19,344,356
2.5%

Common Stock ^{(4) (6) (7)}
—
9
—
0.0%

Common Stock, Class B ^{(4) (6)(7)}
—
—
—
0.0%

Common Stock, Class C ^{(4) (6)(7)}
—
300,002
—
0.0%
28,071,914
22,789,097
19,344,356

MCM Capital Office Park Holdings LLC Banking, Finance, Insurance & Real Estate
Equity ^{(6) (7)}
—
7,032,468
7,032,468
0.9%
—
7,032,468
7,032,468

Nomida, LLC Construction & Building
Senior Secured First Lien Term Loan 10.000%⁽⁶⁾
12/1/2020 3,700,000
3,700,000
3,700,000
0.5%

Equity ^{(6) (7)}
—
5,400,000
5,400,000
0.7%
3,700,000
9,100,000
9,100,000

Sierra Senior Loan Strategy JV I LLC Multi-Sector Holdings
Equity ⁽⁵⁾⁽⁶⁾
72,991,250
72,991,250
72,086,943
9.5%
72,991,250
72,991,250
72,086,943

TwentyEighty, Inc. Services: Business
Senior Secured First Lien Term Loan 1.000%, 7.000% PIK⁽³⁾
3/31/2020 6,579,632
6,579,632
6,579,632
0.9%

Senior Secured First Lien Term Loan 0.250%, 8.750% PIK⁽³⁾
3/31/2020 5,990,198
5,442,414
5,363,024
0.7%

Senior Secured First Lien Term Loan LIBOR + 3.500%, 1.000% Floor, 4.500% PIK^{(3) (5)}
3/31/2020 3,074,260
3,059,174
3,074,260
0.4%

Equity/Warrants ^{(6) (7)}
—
—
—
0.0%
15,644,090
15,081,220
15,016,916

Total controlled/affiliated investments $145,702,585 $140,093,225 18.4%

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
RateGain Technologies, Inc.	Hotel, Gaming & Leisure	Subordinated Notes ⁽⁵⁾ ^{(13) (12)}	7/31/2020		386,854		363,936		—		—	%
		Subordinated Notes ^{(5) (13)}	7/31/2021		476,190		476,191		—		—	%
					863,044		840,127		—
Redwood Services Group, LLC	Services: Business	Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(4) (5)}	6/6/2023		3,980,000		3,980,000		3,980,000		0.7	%
		Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor ^{(5) (7)}	6/6/2023		22,493,469		22,493,469		22,077,340		4.0	%
		Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(5) (7)}	6/6/2023		730,356		716,443		730,356		0.1	%
					27,203,825		27,189,912		26,787,696
Resolute Investment Managers, Inc.	Banking, Finance, Insurance & Real Estate	Senior Secured Second Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(4) (5)}	4/30/2025		6,000,000		5,974,106		6,060,000		1.1	%
					6,000,000		5,974,106		6,060,000
Rhombus Cinema Holdings, LP	Media: Diversified & Production	Preferred Equity - 7,449 shares 10.000% PIK ⁽⁵⁾ ^{(6) (13)}			—		4,584,207		—		—	%
		Common Units - 3,163 units ^{(5) (13)}			—		2,864,831		—		—	%
		Common Units - 3,163 units ^{(5) (13)}			—		297,962		—		—	%
					—		7,747,000		—
RTIC Subsidiary Holdings, LLC	Consumer Goods: Durable	Senior Secured First Lien Term Loan LIBOR + 7.750%, 1.250% Floor ^{(4) (5)}	9/1/2025		9,875,000		9,875,000		9,950,050		1.8	%
		Revolving Credit Facility LIBOR + 7.750%, 1.250% Floor ^{(4) (5)} ^{(7) (11)}	9/1/2025		793,651		793,651		785,714		0.1	%
		Preferred Class A units - 145.347 units ⁽¹³⁾			—		145,347		145,347		—	%
		Preferred Class B units - 145.347 units ⁽¹³⁾			—		145,347		145,347		—	%
		Common units - 153 units ⁽¹³⁾			—		15,300		28,610		—	%
					10,668,651		10,974,645		11,055,068
SavATree, LLC	Environmental Industries	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ^{(4) (5)}	6/2/2022		4,261,924		4,261,924		4,261,924		0.8	%
					4,261,924		4,261,924		4,261,924
SFP Holding, Inc.	Construction & Building	Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor ⁽⁴⁾ ^{(5) (11)}	9/1/2022		23,540,101		23,523,664		23,540,101		4.3	%
		Equity - 0.94% of outstanding equity ^{(5) (13)}			—		788,116		866,928		0.2	%
					23,540,101		24,311,780		24,407,029
Simplified Logistics, LLC	Services: Business	Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor ⁽⁴⁾ ^{(5) (11)}	2/28/2022		18,202,104		18,202,104		18,076,510		3.3	%
					18,202,104		18,202,104		18,076,510
SMART Financial Operations, LLC	Retail	Preferred Equity - 1,000,000 units ^{(5) (13)}			—		1,000,000		490,000		0.1	%
					—		1,000,000		490,000

F-9

Company⁽¹⁾
Industry
Type of Investment⁽¹⁸⁾
Maturity Par
Amount Cost Fair Value
% of Net Assets⁽²⁾
Money market fund– 2.5%
1,114,800,045
1,067,062,092

Federated Institutional Prime Obligations Fund⁽¹⁶⁾
Money Market 1.190% 18,674,728
18,674,728
18,674,728
2.5%
Total money market fund

$18,674,728 $18,674,728 2.5%

Derivative Instrument - Long Exposure Initial Notional Cost Unrealized Appreciation/(Depreciation)
Total return swap with Citibank, N.A. (Note 5) Total Return Swap 218,959,901 (5,483,594 ) -0.7%
Total derivative instrument - long exposure 218,959,901 (5,483,594 ) -0.7%

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Smile Doctors, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor ^{(4) (5)}	10/6/2022		13,735,950		13,721,574		13,554,635		2.4	%
					13,735,950		13,721,574		13,554,635
Software Luxembourg Intermediate S.À R.L.	Services: Business	Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor ^{(4) (5)}	4/27/2025		4,000,000		4,010,539		4,000,000		0.7	%
					4,000,000		4,010,539		4,000,000
Sound Point CLO XX, Ltd.	Multi-Sector Holdings	Subordinated Notes 9.080% effective yield ^{(5) (8)} ^{(9) (10)}	7/26/2031		4,489,000		3,279,007		2,627,412		0.5	%
					4,489,000		3,279,007		2,627,412
Team Car Care, LLC	Automotive	Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(4) (5)}	2/23/2023		13,211,493		13,211,493		13,173,179		2.4	%
					13,211,493		13,211,493		13,173,179
Team Services Group	Services: Consumer	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ^{(5) (7)}	12/20/2027		4,987,500		4,846,593		4,962,562		0.9	%
		Senior Secured Second Lien Term Loan LIBOR + 9.000%, 1.000% Floor ^{(5) (7)}	12/18/2028		5,000,000		4,857,634		4,975,000		0.9	%
					9,987,500		9,704,227		9,937,562
The Octave Music Group, Inc.	Media: Diversified & Production	Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor, 0.75% PIK ^{(5) (7)}	5/29/2025		7,724,138		7,665,995		7,531,034		1.4	%
					7,724,138		7,665,995		7,531,034
Thermacell Repellents, Inc.	Consumer Goods: Durable	Revolving Credit Facility LIBOR + 6.250%, 1.000% Floor ^{(5) (11)}	12/4/2026		1,045,000		1,024,522		1,023,000		0.2	%
		Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor ^{(5) (7)}	12/4/2026		2,787,150		2,761,207		2,759,279		0.5	%
					3,832,150		3,785,729		3,782,279
Time Manufacturing Acquisition, LLC	Capital Equipment	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ⁽⁵⁾	2/3/2023		2,459,435		2,459,249		2,454,024		0.4	%
					2,459,435		2,459,249		2,454,024
True Religion Apparel, Inc.	Retail	Common units - 2.713 units ⁽¹³⁾			—		—		—		—	%
		Preferred Equity - 2.818 units ⁽¹³⁾			—		12,094		—		—	%
					—		12,094		—
Velocity Pooling Vehicle, LLC	Automotive	Senior Secured First Lien Term Loan LIBOR + 11.000%, 1.000% Floor ^{(4) (5)}	4/28/2023		871,784		844,936		871,784		0.2	%
		Common Units - 4,676 units ^{(5) (13)}			—		259,938		23,380		—	%
		Warrants - 5,591 warrants ^{(5) (13)}	3/30/2028		—		310,802		27,955		—	%
					871,784		1,415,676		923,119
Vision Solutions, Inc.	High Tech Industries	Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor, 0.75%	4/23/2029		5,000,000		4,950,000		4,962,500		0.9	%
					5,000,000		4,950,000		4,962,500
VOYA CLO 2015-2, LTD.	Multi-Sector Holdings	Subordinated Notes 2.759% effective yield ^{(5) (8)} ^{(9) (10)}	7/19/2028		10,735,659		5,091,271		3,785,393		0.7	%
					10,735,659		5,091,271		3,785,393
VOYA CLO 2016-2, LTD.	Multi-Sector Holdings	Subordinated Notes 4.334% effective yield ^{(5) (8)} ^{(9) (10)}	7/19/2028		11,088,290		6,653,707		5,007,472		0.9	%
					11,088,290		6,653,707		5,007,472
Walker Edison Furniture Company LLC	Consumer Goods: Durable	Common Units - 2,000 units ^{(5) (13)}			—		—		12,197,487		2.2	%
					—		—		12,197,487
Watermill-QMC Midco, Inc.	Automotive	Equity - 1.62% partnership interest ^{(5) (13)}			—		902,277		—		—	%
					—		902,277		—
Wawona Delaware Holdings, LLC	Beverage & Food	Senior Secured First Lien Term Loan LIBOR + 4.750% ^{(4) (5)}	9/11/2026		45,050		42,957		42,122		—	%
					45,050		42,957		42,122
West Dermatology, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor ⁽⁴⁾ ^{(5) (11)}	2/11/2025		723,038		731,502		743,290		0.1	%
		Revolving Credit Facility LIBOR + 6.000%, 1.000% Floor, 0.75% PIK ^{(4) (5)}	2/11/2025		1,662,538		1,662,538		1,619,478		0.3	%
		Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor, 0.750% PIK ⁽⁴⁾ ^{(5) (11)}	2/11/2025		4,730,249		4,727,780		4,609,628		0.8	%
					7,115,825		7,121,820		6,972,396
Wok Holdings Inc.	Retail	Senior Secured First Lien Term Loan LIBOR + 6.250% ^{(5) (7)}	3/1/2026		48,875		34,174		48,171		—	%
					48,875		34,174		48,171

Total non-controlled/non-affiliated investments						$	512,940,700	$	497,021,783		89.7	%

F-10

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Controlled/affiliated investments –	24.3%
1888 Industrial Services, LLC	Energy: Oil & Gas	Revolving Credit Facility LIBOR + 5.000%, 1.000% Floor ⁽⁴⁾ ^{(5) (11)}	9/30/2021		1,243,924		1,243,924		1,243,924		0.2	%
		Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ⁽⁵⁾ ^{(6) (7)}	9/30/2021		431,176		431,176		431,176		0.1	%
		Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor, PIK ⁽⁴⁾ ^{(5) (6)}	9/30/2021		3,642,176		3,315,574		—		—	%
		Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor, PIK ⁽⁴⁾ ^{(5) (6)}	9/30/2021		9,711,916		6,816,029		—		—	%
		Units - 6,122.765 units ⁽⁵⁾ ^{(9) (13)}			—		—		—		—	%
					15,029,192		11,806,703		1,675,100
Black Angus Steakhouses, LLC	Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor, PIK ⁽⁴⁾ ^{(5) (6)}	6/30/2022		22,681,178		20,457,589		9,072,471		1.6	%
		Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor ^{(4) (5)}	6/30/2022		1,897,321		1,897,321		1,897,321		0.3	%
		Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor ⁽⁵⁾ ^{(7) (11)}	6/30/2022		3,750,000		3,750,000		3,750,000		0.7	%
		Equity - 44.60% of outstanding equity ⁽⁵⁾ ^{(9) (13)}			—		—		—		—	%
					28,328,499		26,104,910		14,719,792
Caddo Investors Holdings 1 LLC	Forest Products & Paper	Equity - 12.250% LLC Interest ^{(5) (16)}			—		5,072,149		6,797,899		1.2	%
					—		5,072,149		6,797,899
Charming Charlie LLC	Retail	Senior Secured First Lien Delayed Draw Term Loan 20.000% ^{(6) (12)}	5/28/2022		769,967		769,968		396,225		0.1	%
		Senior Secured First Lien Term Loan LIBOR + 10.000%, 1.000% Floor ^{(4) (6)}	4/24/2023		7,590,773		5,859,128		—		—	%
		Senior Secured First Lien Term Loan 20.000% ^{(6) (12)}	5/15/2022		138,517		138,517		71,281		—	%
		Common Stock - 34,923,249 shares ^{(9) (13)}			—		—		—		—	%
					8,499,257		6,767,613		467,506
Dynamic Energy Services International LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan 13.500% PIK ⁽⁴⁾ ^{(5) (6)}	12/31/2021		7,546,368		4,449,025		—		—	%
		Common Units - 6,500,000 shares ^{(5) (13)}			—		—		—		—	%
					7,546,368		4,449,025		—
Kemmerer Operations, LLC	Metals & Mining	Senior Secured First Lien Term Loan 15.000% PIK ⁽⁵⁾	6/21/2023		2,294,047		2,294,047		2,294,047		0.4	%
		Senior Secured First Lien Delayed Draw Term Loan 15.000% PIK ^{(5) (11)}	6/21/2023		288,614		288,614		288,614		0.1	%
		Common Units - 6.7797 units ^{(5) (13)}			—		962,718		962,760		0.2	%
					2,582,661		3,545,379		3,545,421
MCM 500 East Pratt Holdings, LLC	Banking, Finance, Insurance & Real Estate	Equity - 5,000,000 units ^{(9) (13)}			—		5,000,000		6,425,000		1.2	%
					—		5,000,000		6,425,000
MCM Capital Office Park Holdings LLC	Banking, Finance, Insurance & Real Estate	Equity - 7,500,000 units ^{(9) (13)}			—		7,500,000		14,918,505		2.7	%
					—		7,500,000		14,918,505
Sierra Senior Loan Strategy JV I LLC	Multi-Sector Holdings	Equity - 89.01% ownership of SIC Senior Loan Strategy JV I LLC ⁽⁵⁾ ^{(9) (16)}			—		110,050,000		85,775,721		15.5	%
					—		110,050,000		85,775,721


Total controlled/affiliated investments⁽¹⁵⁾						$	180,295,779	$	134,324,944		24.3	%

Total investments						$	693,236,479	$	631,346,727		114.0	%

Money Market Fund - 32.5%
Federated Institutional Prime Obligations Fund		Money Market 0.010% ⁽¹⁷⁾		$	6,419,651	$	6,419,651	$	6,419,651		1.2	%
State Street Institutional Liquid Reserves Fund		Money Market 0.050% ⁽¹⁷⁾			14,095,548		14,099,419		14,096,958		2.5	%
Total money market fund				$	20,515,199	$	20,519,070	$	20,516,609		3.7	%

F-11



(1)	All of the Company's investments are domiciled in the United States except for ~~Livingston International Inc., which is domiciled in Canada and~~ AMMC CLO ~~17,~~22, Limited Series ~~2015-17A,~~2018-22A, AMMC CLO 23, Ltd. Series 2020-23A, Apidos CLO XXIV, Series 2016-24A, ~~Dryden 38 Senior Loan Fund, Series 2015-38A,~~ Dryden 43 Senior Loan Fund, Series 2016-43A, Dryden 49 Senior Loan Fund, 2017-49A, Magnetite XIX, Limited, Sound Point CLO XX, Ltd., VOYA CLO 2016-2, LTD., and VOYA CLO ~~2016-2,~~2015-2, LTD., which are all domiciled in the Cayman Islands. All foreign investments ~~are~~were denominated in US Dollars.

(2)	~~Percentage is based on net assets of $760,249,071 as of September 30, 2017.~~
~~(3)~~	The interest rate on these loans is subject to a base rate plus 3 Month "3M" LIBOR, which at September 30, 2017 was 1.33%. As the interest rate is subject to a minimum LIBOR floor, the prevailing rate in effect at September 30, 2017 was the base rate plus the greater of the minimum LIBOR floor or 3M LIBOR.
~~(4)~~	~~An affiliated fund that is managed by an affiliate of SIC Advisors LLC also holds an investment in this security.~~
~~(5)~~	~~The investment has an unfunded commitment as of September 30, 2017. For further details, see Note 11. Fair value includes an analysis of the unfunded commitment.~~
~~(6)~~	~~The investment is not a qualifying asset under Section 55 of the Investment Company Act of 1940 (the 1940 Act"). Non-qualifying assets represent 25.3% of the Company's portfolio at fair value.~~
~~(7)~~	~~Security is non-income producing.~~
~~(8)~~	~~The interest rate on these loans is subject to a base rate plus 1 Month "1M" LIBOR.~~
~~(9)~~	Securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities represent a fair value of $99,914,056 or 13.1% of net assets as of September 30, 2017 and are considered restricted.
~~(10)~~	This investment is in the equity class of a collateralized loan obligation (CLO"). The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield is based on the current projections of this excess cash flow taking into account assumptions that have been made regarding expected prepayments
~~(11)~~	~~A portion of this investment was sold via a participation agreement. The listed amount is the portion retained by Sierra Income Corporation.~~
~~(12)~~	~~The investment was on non-accrual status as of September 30, 2017.~~
~~(13)~~	Security is also held in the underlying portfolio of the total return swap with Citibank, N.A. (see Note 5). The Company's total exposure to Imagine! Print Solutions, Inc., Isola USA Corp., Keystone Acquisition Corp., Livingston International, Inc., New Media Holdings II, LLC, Petco Animal Supplies, Inc., PetroChoice Holdings, LLC, Resolute Investment Managers, Inc., TCH-2 Holdings, LLC, and Touchtunes Interactive Networks, Inc. is $14,740,900 or 1.9%, $8,238,783 or 1.1%, $9,206,000 or 1.2%, $4,574,511 or 0.6%, $16,867,022 or 2.2%, $10,377,191 or 1.4%, $13,974,684 or 1.8%, $7,918,793 or 1.0%, $6,834,490 or 0.9%, and $8,416,005 or 1.1%, respectively, of Net Assets as of September 30, 2017.
~~(14)~~	~~Represents securities in Level 2 in the ASC 820 table (see Note 4).~~
~~(15)~~	~~The interest rate on these loans is subject to a base rate plus 6 month "6M" LIBOR.~~
~~(16)~~	~~Represents securities in Level 1 in the ASC 820 table (see Note 4).~~
~~(17)~~	~~Control Investments are defined by the 1940 Act as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.~~
~~(18)~~	Unless otherwise indicated, all securities are valued using significant unobservable inputs, which are categorized as Level 3 assets under the definition of ASC 820 fair value hierarchy.

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

~~Sierra Income Corporation~~

~~Consolidated Schedule of Investments~~

~~As of December 31, 2016~~

Company⁽¹⁾
Industry Type of Investment Maturity Par
Amount Cost Fair Value
% of
Net Assets⁽²⁾
Non-controlled/non-affiliated investments– 114.5%

AAAHI Acquisition Corporation Transportation: Consumer
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor^(3)(4)(5)
12/15/2021 $ 7,280,374
$ 7,280,374
$ 7,280,374
0.9%
7,280,374
7,280,374
7,280,374

AAR Intermediate Holdings, LLC Energy: Oil & Gas
Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor^{(3) (4) (5)}
9/30/2021 150,935
150,935
150,935
0.0%

Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor^{(3) (4)}
9/30/2021 3,144,481
3,144,481
3,144,481
0.4%

Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor, PIK^{(3) (4)}
9/30/2021 6,457,851
5,254,799
5,211,292
0.7%

Membership Units ^{(4) (6) (7)}
—
—
—
0.0%
9,753,267
8,550,215
8,506,708

Access Media Holdings, LLC Media: Broadcasting & Subscription
Senior Secured First Lien Term Loan 5.000%, 5.000% PIK⁽⁴⁾
7/22/2020 7,026,014
7,026,014
6,868,420
0.9%

Common Stock ^{(4) (6) (7)}
—
—
—
0.0%

Preferred Equity Series A ^{(4) (6) (7)}
—
1,400,000
—
0.0%

Preferred Equity Series AA ^{(4) (6) (7)}
—
647,500
—
0.0%
7,026,014
9,073,514
6,868,420

Advanced Diagnostic Holdings, LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan LIBOR + 8.750%, 0.875% Floor^{(3) (4)}
12/11/2020 15,262,608
15,262,608
15,567,860
2.0%
15,262,608
15,262,608
15,567,860

Alpha Media LLC Media: Broadcasting & Subscription
Senior Secured First Lien Term Loan LIBOR 5 6.000%, 1.000% Floor⁽⁵⁾⁽⁸⁾
2/25/2022 9,384,375
9,012,061
8,962,078
1.2%
9,384,375
9,012,061
8,962,078

Amerijet Holdings Inc. Transportation: Cargo
Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor^{(3) (4)}
7/15/2021 16,087,500
16,087,500
16,087,500
2.1%
16,087,500
16,087,500
16,087,500

AMMC CLO 17, Limited Series 2015-17A Multi-Sector Holdings
Subordinated Note 21.670% effective yield^{(6) (9) (10)}
11/15/2027 5,000,000
3,553,568
4,181,250
0.5%
5,000,000
3,553,568
4,181,250

Anaren, Inc. Aerospace & Defense
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.000% Floor⁽³⁾
8/18/2021 10,000,000
9,929,667
10,002,500
1.3%
10,000,000
9,929,667
10,002,500

APCO Holdings, Inc. Automotive
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor^{(4) (11)}
1/31/2022 4,351,318
4,236,463
4,369,201
0.6%
4,351,318
4,236,463
4,369,201

Apidos CLO XXIV, Series 2016-24A Multi-Sector Holdings
Subordinated Note 16.535% effective yield^{(4) (6) (9) (10)}
1/20/2023 25,471,800
21,625,558
21,977,069
2.8%
25,471,800
21,625,558
21,977,069

Associated Asphalt Partners, LLC Chemicals, Plastics & Rubber
Senior Secured First Lien Note 8.500%⁽⁹⁾
2/15/2018 1,778,000
1,782,303
1,795,780
0.2%
1,778,000
1,782,303
1,795,780

Astro AB Borrower, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor^(3)(11)
4/30/2023 6,000,000
5,898,052
6,060,000
0.8%
6,000,000
5,898,052
6,060,000

Company⁽¹⁾
Industry Type of Investment Maturity Par
Amount Cost Fair Value
% of
Net Assets⁽²⁾
Asurion, LLC Banking, Finance, Insurance & Real Estate
Senior Secured Second Lien Term Loan LIBOR + 7.500%, 1.000% Floor^(3)(11)
3/3/2021 7,000,000
6,952,364
7,087,500
0.9%
7,000,000
6,952,364
7,087,500

Atrium Innovations, Inc. Healthcare & Pharmaceuticals
Senior Secured Second Lien Term Loan LIBOR + 6.750%, 1.000% Floor ^(1)(3)(6)
8/13/2021 5,000,000
4,982,828
5,000,000
0.6%
5,000,000
4,982,828
5,000,000

Aviation Technical Services, Inc. Aerospace & Defense
Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor^(3)(4)(17)
3/31/2022 25,000,000
25,000,000
25,500,000
3.3%
25,000,000
25,000,000
25,500,000

Backcountry.com, LLC Retail
Senior Secured First Lien Term Loan LIBOR + 7.250%, 1.000% Floor^{(3) (4) (17)}
6/30/2020 34,589,843
34,589,843
34,935,742
4.5%
34,589,843
34,589,843
34,935,742

Birch Communications, Inc. Telecommunications
Senior Secured First Lien Term Loan LIBOR + 7.250%, 1.000% Floor^{(4) (8)}
7/17/2020 13,816,112
13,647,092
13,633,601
1.8%
13,816,112
13,647,092
13,633,601

Black Angus Steakhouses LLC Hotel, Gaming & Leisure
Revolving Credit Facility LIBOR + 9.000%, 1.000% Floor^{(3) (4) (5) (17)}
4/24/2020 669,643
669,643
613,326
0.1%

Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor^{(3) (4) (17)}
4/24/2020 19,637,277
19,637,277
19,141,828
2.5%
20,306,920
20,306,920
19,755,154

Brundage-Bone Concrete Pumping, Inc. Construction & Building
Senior Secured First Lien Note 10.375%⁽⁹⁾
9/1/2021 7,500,000
7,607,418
8,025,000
1.0%
7,500,000
7,607,418
8,025,000

Charming Charlie LLC Retail
Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor⁽³⁾
12/24/2019 7,908,765
7,920,847
6,334,209
0.8%
7,908,765
7,920,847
6,334,209

ConvergeOne Holdings Corp. Telecommunications
Senior Secured Second Lien Term Loan LIBOR + 9.000%, 1.000% Floor^{(3) (4) (11)}
6/17/2021 12,500,000
12,410,777
12,500,000
1.6%
12,500,000
12,410,777
12,500,000

Cornerstone Chemical Company Chemicals, Plastics & Rubber
Senior Secured First Lien Note 9.375%⁽⁹⁾
3/15/2018 4,970,000
4,874,178
4,963,788
0.6%
4,970,000
4,874,178
4,963,788

CP Opco, LLC Services: Consumer
Revolver LIBOR + 4.500%, 1.000% Floor^{(3) (4) (5)}
3/31/2019 128,039
128,039
128,039
0.0%

Revolver ABR + 3.500%, 3.750% Floor^{(3) (4) (5)}
3/31/2019 210,935
210,935
210,935
0.0%

Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor, PIK^{(3) (4)}
3/31/2019 504,597
504,597
504,597
0.1%

Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor, PIK^{(3) (4)}
3/31/2019 210,249
210,249
210,249
0.0%

Senior Secured First Lien Term Loan LIBOR + 9.500%, 1.000% Floor, PIK^{(3) (4) (12)}
3/31/2019 1,487,033
717,016
743,516
0.1%

Preferred Units LIBOR + 9.500%, 1.000% Floor, PIK^{(4) (12)}
3/31/2019 205
—
—
0.0%

Common Units ^{(4) (7)}
—
—
—
0.0%
2,541,058
1,770,836
1,797,336

CRGT Inc. High Tech Industries
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(4) (8)}
12/19/2020 3,966,456
3,966,456
3,966,456
0.5%

Company⁽¹⁾
Industry Type of Investment Maturity Par
Amount Cost Fair Value
% of
Net Assets⁽²⁾
3,966,456
3,966,456
3,966,456

DHISCO Electronic Distribution, Inc. Hotel, Gaming & Leisure
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.500% Floor^{(3) (4)}
11/10/2019 2,380,952
2,380,952
2,380,952
0.3%

Senior Secured First Lien Term Loan LIBOR + 11.250% PIK, 1.500% Floor^{(3) (4) (12)}
11/10/2019 6,680,333
2,940,892
2,956,515
0.4%

Senior Secured First Lien Term Loan LIBOR + 9.000% PIK, 1.500% Floor^{(3) (4)}
11/10/2019 8,369,792
8,369,792
8,369,792
1.1%

Senior Secured First Lien Term Loan LIBOR + 10.250%, PIK 1.500% Floor^{(3) (4)}
11/10/2019 7,177,827
7,177,827
7,177,827
0.9%

Common Units, Class A ^{(4) (7)}
—
769,231
—
0.0%
24,608,904
21,638,694
20,885,086

Drew Marine Partners, LP Transportation: Cargo
Senior Secured Second Lien Term Loan LIBOR + 7.000%, 1.000% Floor⁽³⁾
5/19/2021 10,000,000
10,054,556
9,872,800
1.3%
10,000,000
10,054,556
9,872,800

Dryden 38 Senior Loan Fund - Series 2015-38A Multi-Sector Holdings
Subordinated Note 17.689% effective yield^{(6) (9) (10)}
7/15/2027 7,000,000
5,011,083
5,225,150
0.7%
7,000,000
5,011,083
5,225,150

Dryden 43 Senior Loan Fund - Series 2016-43A Multi-Sector Holdings
Subordinated Note 18.086% effective yield^{(4) (6) (9) (10)}
7/20/2029 3,620,000
2,932,200
3,250,579
0.4%
3,620,000
2,932,200
3,250,579

Dryden 49 Senior Loan Fund Multi-Sector Holdings
Preferred Shares^{(4) (6)}
—
14,500,000
14,500,000
1.9%
—
14,500,000
14,500,000

Dynamic Energy Services International LLC Energy: Oil & Gas
Senior Secured First Lien Term Loan 13.500% PIK + LIBOR^{(4) (8)}
3/6/2018 8,662,161
8,662,161
7,373,318
1.0%
8,662,161
8,662,161
7,373,318

EarthLink, Inc. Telecommunications
Senior Secured First Lien Note 7.375%^{(6) (9) (13)}
6/1/2020 2,450,000
2,442,601
2,575,563
0.3%
2,450,000
2,442,601
2,575,563

Elite Comfort Solutions LLC Chemicals, Plastics & Rubber
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(3) (5)}
1/15/2021 8,858,643
8,858,643
8,966,622
1.2%
8,858,643
8,858,643
8,966,622

First Boston Construction Holdings, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Note 12.000%^{(4) (5)}
12/31/2020 6,105,000
6,105,000
6,105,000
0.8%

Preferred Equity ^{(4) (7)}
—
1,526,250
1,526,250
0.2%
6,105,000
7,631,250
7,631,250

FKI Security Group, LLC Capital Equipment
Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor^{(3) (4)}
3/30/2020 11,937,500
11,937,500
12,088,629
1.6%
11,937,500
11,937,500
12,088,629

Frontier Communications Corp. Telecommunications
Senior Secured First Lien Note 10.500%^{(6) (9) (13)}
9/15/2022 2,000,000
2,000,000
2,107,500
0.3%
2,000,000
2,000,000
2,107,500

Gastar Exploration Inc. Energy: Oil & Gas
Senior Secured First Lien Note 8.625%^{(9) (13)}
5/15/2018 5,400,000
5,405,735
5,325,750
0.7%
5,400,000
5,405,735
5,325,750

Genex Holdings, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured Second Lien Term Loan LIBOR + 7.750%, 1.000% Floor^(3)(11)
5/30/2022 9,500,000
9,525,097
9,500,000
1.2%
9,500,000
9,525,097
9,500,000

GK Holdings, Inc. Services: Business
Senior Secured Second Lien Term Loan LIBOR + 9.500%, 1.000% Floor⁽³⁾
1/30/2022 10,000,000
10,000,000
10,200,000
1.3%
10,000,000
10,000,000
10,200,000

Company⁽¹⁾
Industry Type of Investment Maturity Par
Amount Cost Fair Value
% of
Net Assets⁽²⁾
Green Field Energy Services, Inc. Energy: Oil & Gas
Senior Secured First Lien Note 13.000%^{(4) (9) (12)}
11/15/2016 766,615
754,615
157,156
0.0%

Warrants ^{(4) (7)}
—
29,000
—
0.0%
766,615
783,615
157,156

HBC Holdings LLC Wholesale
Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor^{(3) (4)}
3/30/2020 13,162,500
13,162,500
12,461,860
1.6%
13,162,500
13,162,500
12,461,860

Heligear Acquisition Co. Aerospace & Defense
Senior Secured First Lien Note 10.250%^{(4) (9)}
10/15/2019 15,000,000
15,000,000
15,785,550
2.0%
15,000,000
15,000,000
15,785,550

Hill International, Inc. Construction & Building
Senior Secured First Lien Term Loan LIBOR + 6.750%, 1.000% Floor^{(3) (4) (17)}
9/28/2020 16,617,500
16,617,500
16,617,500
2.2%
16,617,500
16,617,500
16,617,500

Holland Acquisition Corp. Energy: Oil & Gas
Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor⁽³⁾
5/29/2018 4,515,605
4,482,170
2,791,682
0.4%
4,515,605
4,482,170
2,791,682

Hylan Datacom & Electrical LLC Construction & Building
Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor^{(3) (4)}
7/25/2021 15,799,862
15,799,862
15,799,862
2.0%
15,799,862
15,799,862
15,799,862

Ignite Restaurant Group, Inc. Hotel, Gaming & Leisure
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor⁽³⁾
2/13/2019 8,385,496
8,316,629
8,009,658
1.0%
8,385,496
8,316,629
8,009,658

IHS Intermediate, Inc. Services: Business
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.000% Floor⁽³⁾
7/20/2022 25,000,000
25,000,000
25,163,250
3.3%
25,000,000
25,000,000
25,163,250

Impact Sales, LLC Services: Business
Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor^{(3) (4) (5)}
12/30/2021 4,687,500
4,687,500
4,687,500
0.6%
4,687,500
4,687,500
4,687,500

Interface Security Systems Holdings, Inc. Services: Consumer
Senior Secured First Lien Note 9.250%⁽⁹⁾
1/15/2018 3,417,000
3,434,380
3,404,186
0.4%
3,417,000
3,434,380
3,404,186

Invision Diversified, LLC Services: Business
Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor^{(3) (4) (17)}
6/30/2020 24,491,435
24,491,435
24,807,130
3.2%
24,491,435
24,491,435
24,807,130

IronGate Energy Services, LLC Energy: Oil & Gas
Senior Secured First Lien Note 11.000%^{(9) (12)}
7/1/2018 3,000,000
2,973,811
975,000
0.1%
3,000,000
2,973,811
975,000

Isola USA Corp. High Tech Industries
Senior Secured First Lien Term Loan LIBOR + 8.250%, 1.000% Floor^(3)(11)
11/29/2018 5,493,504
5,551,082
5,113,299
0.7%
5,493,504
5,551,082
5,113,299

Jordan Reses Supply Company, LLC Healthcare & Pharmaceuticals
Senior Secured Second Lien Term Loan LIBOR + 11.000%, 1.000% Floor^{(3) (4)}
4/24/2020 5,000,000
5,000,000
5,050,000
0.7%
5,000,000
5,000,000
5,050,000

Liquidnet Holdings, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loan LIBOR + 6.750%, 1.000% Floor⁽³⁾
5/22/2019 6,125,000
6,075,286
6,160,586
0.8%
6,125,000
6,075,286
6,160,586

Livingston International Inc. Transportation: Cargo
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.250% Floor^{(3) (6) (11)}
4/17/2020 2,658,504
2,655,528
2,532,757
0.3%
2,658,504
2,655,528
2,532,757

Loar Group Inc. Aerospace & Defense
Senior Secured Second Lien Term Loan LIBOR + 9.250%, 1.000% Floor⁽⁸⁾
7/12/2022 15,000,000
15,000,000
15,450,000
2.0%

Company⁽¹⁾
Industry Type of Investment Maturity Par
Amount Cost Fair Value
% of
Net Assets⁽²⁾
15,000,000
15,000,000
15,450,000

LSF9 Atlantis Holdings, LLC Retail
Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor^{(3) (4)}
1/15/2021 9,625,000
9,546,319
9,739,634
1.3%
9,625,000
9,546,319
9,739,634

LTCG Holdings Corp. Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor⁽³⁾
6/6/2020 2,838,571
2,829,766
2,664,170
0.3%
2,838,571
2,829,766
2,664,170

Miller Heiman, Inc. Services: Business
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor^{(3) (12)}
9/30/2019 23,593,750
23,593,750
12,976,563
1.7%
23,593,750
23,593,750
12,976,563

Nathan's Famous, Inc. Beverage & Food
Senior Secured First Lien Note 10.000%⁽¹³⁾
3/15/2020 7,000,000
7,000,000
7,612,500
1.0%
7,000,000
7,000,000
7,612,500

Nation Safe Drivers Holdings, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured Second Lien Term Loan LIBOR + 8.000%, 2.000% Floor^{(3) (4)}
9/29/2020 20,676,479
20,676,479
20,883,243
2.7%
20,676,479
20,676,479
20,883,243

New Media Holdings II LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor⁽³⁾
6/4/2020 18,043,921
18,029,645
18,043,921
2.3%
18,043,921
18,029,645
18,043,921

Novetta Solutions, LLC High Tech Industries
Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor⁽³⁾
10/16/2023 11,000,000
10,905,938
10,499,170
1.4%
11,000,000
10,905,938
10,499,170

Nuspire, LLC High Tech Industries
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(3) (4) (5)}
11/8/2021 —
—
—
0.0%

Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(3) (4)}
11/8/2022 6,310,000
6,310,000
6,310,000
0.8%
6,310,000
6,310,000
6,310,000

Omnitracs, Inc. Telecommunications
Senior Secured Second Lien Term Loan LIBOR + 7.750%, 1.000% Floor⁽³⁾
5/25/2021 7,000,000
7,010,819
6,763,750
0.9%
7,000,000
7,010,819
6,763,750

Oxford Mining Company, LLC Metals & Mining
Senior Secured First Lien Term Loan LIBOR + 8.500%, 0.750% Floor, 3.000% PIK^{(3) (4)}
12/31/2018 20,756,843
20,756,842
20,518,139
2.7%
20,756,843
20,756,842
20,518,139

Path Medical, LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan LIBOR + 9.500%, 1.000% Floor^{(4) (8)}
10/11/2021 16,195,000
15,560,824
15,542,666
2.0%

Warrants ^{(4) (7)}
—
669,709
669,709
0.1%
16,195,000
16,230,533
16,212,375

Payless Inc. Retail
Senior Secured Second Lien Term Loan LIBOR + 7.500%, 1.000% Floor⁽³⁾
3/11/2022 6,000,000
6,014,579
900,000
0.1%
6,000,000
6,014,579
900,000

Preferred Proppants, LLC Construction & Building
Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor^(3)(11)
7/27/2020 3,979,645
2,738,781
3,357,825
0.4%
3,979,645
2,738,781
3,357,825

Press Ganey Holding, Inc. Healthcare & Pharmaceuticals
Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor^(3)(11)
10/21/2024 6,500,000
6,473,059
6,472,505
0.8%
6,500,000
6,473,059
6,472,505

PT Network, LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(3) (4) (5)}
11/30/2021 4,833,334
4,833,334
4,833,334
0.6%
4,833,334
4,833,334
4,833,334

Company⁽¹⁾
Industry Type of Investment Maturity Par
Amount Cost Fair Value
% of
Net Assets⁽²⁾
Reddy Ice Corporation Beverage & Food
Senior Secured Second Lien Term Loan LIBOR + 9.500%, 1.250% Floor^{(4) (8)}
11/1/2019 2,000,000
2,000,000
1,720,000
0.2%
2,000,000
2,000,000
1,720,000

Research Now Group, Inc. Services: Business
Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor⁽³⁾
3/18/2022 15,000,000
15,000,000
14,983,200
1.9%
15,000,000
15,000,000
14,983,200

Response Team Holdings, LLC Construction & Building
Preferred Equity 12% PIK^{(4) (6) (12)}
—
3,384,734
967,238
0.1%

Warrants ^{(4) (6) (7)}
—
257,407
—
0.0%
—
3,642,141
967,238

Rhombus Cinema Holdings, LP Media: Diversified & Production
Preferred Equity 10.000% PIK^{(4) (6)}
—
4,584,207
5,051,193
0.7%

Equity ^{(4) (6) (7)}
—
3,162,793
3,162,793
0.4%
—
7,747,000
8,213,986

School Specialty, Inc. Wholesale
Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor⁽³⁾
6/11/2019 9,198,434
9,169,670
9,198,434
1.2%
9,198,434
9,169,670
9,198,434

Ship Supply Acquisition Corporation Services: Business
Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor^{(3) (4)}
7/31/2020 23,437,500
23,437,500
22,970,391
3.0%
23,437,500
23,437,500
22,970,391

Sizzling Platter, LLC Hotel, Gaming & Leisure
Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor⁽³⁾
4/28/2020 15,000,000
15,000,000
15,091,200
2.0%
15,000,000
15,000,000
15,091,200

SMART Financial Operations, LLC Retail
Senior Secured First Lien Term Loan LIBOR + 10.000%, 1.000% Floor^{(3) (4) (5)}
11/22/2021 3,700,000
3,700,000
3,700,000
0.5%

Equity ^{(4) (7)}
—
1,000,000
1,000,000
0.1%
3,700,000
4,700,000
4,700,000

Southwest Dealer Services, Inc. Automotive
Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor^{(3) (4) (17)}
3/16/2020 2,538,823
2,538,823
2,535,878
0.3%
2,538,823
2,538,823
2,535,878

Survey Sampling International, LLC Services: Business
Senior Secured Second Lien Term Loan LIBOR + 9.000%, 1.000% Floor⁽³⁾
12/16/2021 24,000,000
24,000,000
24,000,000
3.1%
24,000,000
24,000,000
24,000,000

Techniplas, LLC Automotive
Senior Secured First Lien Note 10.000%⁽⁹⁾
5/1/2020 6,000,000
6,000,000
5,218,500
0.7%
6,000,000
6,000,000
5,218,500

The Garretson Resolution Group, Inc. Services: Business
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor⁽³⁾
5/22/2021 9,625,000
9,587,577
9,663,115
1.2%
9,625,000
9,587,577
9,663,115

Touchtunes Interactive Networks, Inc. Media: Diversified & Production
Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.000% Floor⁽³⁾
5/27/2022 7,500,000
7,500,000
7,519,800
1.0%
7,500,000
7,500,000
7,519,800

Transocean Phoenix 2 Ltd. Energy: Oil & Gas
Senior Secured First Lien Note 7.750%^{(4) (9) (13)}
10/15/2024 7,500,000
7,387,506
7,919,325
1.0%
7,500,000
7,387,506
7,919,325

TravelCLICK, Inc. Hotel, Gaming & Leisure
Senior Secured Second Lien Term Loan LIBOR + 7.750%, 1.000% Floor^(3)(11)
11/6/2021 6,000,000
5,935,400
5,899,740
0.8%
6,000,000
5,935,400
5,899,740

Truco Enterprises, LP Beverage & Food
Senior Secured First Lien Term Loan 8.240% Fixed^{(4) (8)}
4/26/2021 9,949,580
9,949,580
9,949,580
1.3%
9,949,580
9,949,580
9,949,580

Company⁽¹⁾
Industry Type of Investment Maturity Par
Amount Cost Fair Value
% of
Net Assets⁽²⁾
True Religion Apparel, Inc. Retail
Senior Secured Second Lien Term Loan LIBOR + 10.000%, 1.000% Floor⁽¹⁴⁾
1/30/2020 4,000,000
3,899,083
—
0.0%
4,000,000
3,899,083
—

U.S. Auto Sales, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured Second Lien Term Loan LIBOR + 11.750%, 1.000% Floor^{(4) (8) (17)}
6/5/2020 5,500,000
5,500,000
5,452,095
0.7%
5,500,000
5,500,000
5,452,095

U.S. Well Services, LLC Energy: Oil & Gas
Warrants ⁽⁷⁾
—
173
—
0.0%
—
173
—

Valence Surface Technologies, Inc. Aerospace & Defense
Senior Secured First Lien Term Loan LIBOR + 5.500%, 1.000% Floor^{(4) (8)}
6/13/2019 3,499,128
3,486,054
3,388,590
0.4%
3,499,128
3,486,054
3,388,590

Velocity Pooling Vehicle, LLC Automotive
Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor^{(3) (4)}
5/13/2022 20,625,000
18,591,706
10,996,425
1.4%
20,625,000
18,591,706
10,996,425

Verso Corporation Media: Advertising, Printing & Publishing
Common Stock ^{(7) (15)}
—
2,238,108
1,262,666
0.2%
—
2,238,108
1,262,666

VOYA CLO 2016-2, LTD. Multi-Sector Holdings
Subordinated Note 16.185% effective yield^{(6) (9) (10)}
7/19/2028 22,842,661
19,918,800
20,551,542
2.7%
22,842,661
19,918,800
20,551,542

Watermill-QMC Midco, Inc. Automotive
Partnership Interest ^{(4) (6) (7)}
—
850,136
1,102,626
0.1%
—
850,136
1,102,626

Z Gallerie, LLC Retail
Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor^{(4) (8)}
10/8/2020 4,682,646
4,645,211
4,682,647
0.6%
4,682,646
4,645,211
4,682,647

Total non-controlled/non-affiliated investments $ 921,626,572
$ 885,400,856
114.5%
Controlled/affiliated investments– 9.5%⁽¹⁶⁾

Capstone Nutrition Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan LIBOR + 12.500%, 1.000% Floor, PIK^{(4) (8) (12)}
4/28/2019 25,327,876
22,770,855
16,246,819
2.1%

Common Stock ^{(4) (7)}
—
300,002
—
0.0%

Common Stock, Class B ^{(4) (7)}
—
9
—
0.0%

Common Stock, Class C ^{(4) (7)}
—
—
—
0.0%
25,327,876
23,070,866
16,246,819

MCM Capital Office Park Holdings LLC Banking, Finance, Insurance & Real Estate
Equity ^{(6) (7)}
—
7,500,000
7,500,000
1.0%
—
7,500,000
7,500,000

Nomida LLC Construction & Building
Equity ^{(6) (7)}
—
5,400,000
5,400,000
0.7%

Senior Secured First Lien Term Loan 10.000%⁽⁶⁾
12/1/2020 8,100,000
8,100,000
8,100,000
1.0%
8,100,000
13,500,000
13,500,000

Sierra Senior Loan Strategy JV I LLC Multi-Sector Holdings
Equity⁽⁵⁾⁽⁶⁾
60,785,000
60,785,000
60,496,647
7.8%
60,785,000
60,785,000
60,496,647

Total controlled/affiliated investments $ 104,855,866
$ 97,743,466
12.6%
Money market fund– 3.0%

Federated Institutional Prime Obligations Fund
Money Market 0.49%⁽¹⁵⁾
22,966,981
22,966,981
22,966,981
3.0%
Total money market fund $ 22,966,981
$ 22,966,981
3.0%

Company⁽¹⁾
Industry Type of Investment Maturity Par
Amount Cost Fair Value
% of
Net Assets⁽²⁾
Derivative Instrument - Long Exposure Notional
Amount Unrealized
Appreciation (Depreciation)
Total return swap with Citibank, N.A. (Note 5) Total Return Swap 227,513,679
(13,647,330 ) 1.8%
Total derivative instrument - long exposure $ 227,513,679
$ (13,647,330 ) 1.8%

~~___________________________________~~


(3)
~~(1)~~	All of the Company's investments are domiciled in the United States except for Livingston International Inc. and Atrium Innovations, Inc., which are domiciled in Canada, and AMMC CLO 17, Limited Series 2015-17A, Apidos CLO XXIV, Series 2016-24A, Dryden 38 Senior Loan Fund, Series 2015-38A, Dryden 43 Senior Loan Fund, Series 2016-43A, Dryden 49 Senior Loan Fund and VOYA CLO 2016-2, LTD. each of which are domiciled in the Cayman Islands. All foreign investments are denominated in US Dollars.
~~(2)~~	Percentage is based on net assets of ~~$773,113,087~~$553,830,487 as of ~~December 31, 2016.~~June 30, 2021.

~~(3)~~

(4)

The interest rate on these loans is subject to a base rate plus 3 Month ~~“3M”~~"3M" LIBOR, which at ~~December 31, 2016~~June 30, 2021 was ~~1.00%~~0.15%. ~~As the~~The interest rate is subject to a minimum LIBOR ~~floor which was greater than the 3M LIBOR rate at December 31, 2016, the prevailing rate in effect at December 31, 2016 was the base rate plus the LIBOR~~ floor.

~~(4)~~

(5)

An affiliated ~~Company~~fund that is managed by an affiliate of SIC Advisors LLC also holds an investment in this security.

~~(5)~~

(6)

The investment ~~has an unfunded commitment~~was on non-accrual status as of ~~December 31, 2016. For further details (see Note 11)~~June 30, 2021. ~~Fair value includes an analysis of the unfunded commitment.~~

~~(6)~~	The investment is not a qualifying asset under Section 55 of the Investment Company Act of 1940, as amended, (the "1940 Act"). Non-qualifying assets represent 22.4% of the Company's portfolio at fair value.
(7)	~~Security is non-income producing.~~
~~(8)~~	The interest rate on these loans is subject to a base rate plus 1 Month "1M" LIBOR, which at ~~December 31, 2016~~June 30, 2021 was ~~0.77%~~0.10%. ~~As the~~The interest rate is subject to a minimum LIBOR ~~floor, which was greater than the 1M LIBOR rate at December 31, 2016, the prevailing rate in effect at December 31, 2016 was the base rate plus the LIBOR~~ floor.

~~(9)~~

(8)

Securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities represent a fair value of ~~$113,438,688~~$54,568,511 or ~~14.7%~~9.9% of net assets as of ~~December 31, 2016~~June 30, 2021 and are considered ~~restricted.~~restricted securities.

~~(10)~~

(9)

The investment is not a qualifying asset under Section 55 of the Investment Company Act of 1940 (the "1940 Act"). Non-qualifying assets represent 25.6% of the Company's portfolio at fair value.

(10)

This investment is in the equity class of a collateralized loan obligation ("CLO") ~~security.~~. The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield is based on the current projections of this excess cash flow taking into account assumptions that have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions.

(11)

~~Security is also held in the underlying portfolio~~

The investment has an unfunded commitment as of June 30, 2021. For further details see Note 10. Fair value includes an analysis of the total return swap with Citibank, N.A. (see Note 5) or the Sierra Senior Loan Strategy JV I LLC portfolio (see Note 3). The Company's total exposure to APCO Holdings, Inc., Astro AB Borrower, Inc., Asurion LLC, ConvergeOne Holdings Corp., Genex Holdings, Inc., Isola USA Corp., Livingston International, Inc., Preferred Proppants LLC, LLC, Press Ganey Holdings Inc., and TravelCLICK, Inc. is $7,020,932 or 0.9%, 9,123,869 or 1.2%, $8,082,500 or 1.0%, $14,962,500 or 1.9%, $12,427,662 or 1.6%, $8,708,549 or 1.1%, $4,502,200 or 0.6%, $6,199,301 or 0.8%, $15,930,005 or 2.1%, and $10,585,217 or 1.4%, respectively, of net assets as of December 31, 2016.unfunded commitment.

(12)

The investment ~~was on non-accrual status~~is past due as of ~~December 31, 2016.~~June 30, 2021

(13)	~~Represents securities in Level 2 in the ASC 820 table (see Note 4).~~ Security is non-income producing.
(14)	The interest rate on these loans is subject to a base rate plus 6 month "6M" LIBOR, which at ~~December 31, 2016~~June 30, 2021, 2021 was ~~1.32%~~0.16%. ~~As the~~The interest rate is subject to a minimum LIBOR ~~floor,~~floor.

(15)

Affiliate Investments are defined by the 1940 Act as investments in companies in which ~~was~~the Company owns at least 5% but no more than 25% of the voting securities or we are under common control with such portfolio company. Control Investments are defined by the 1940 Act as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the 6Mboard representation.

(16)	As a practical expedient, the Company uses NAV to determine the fair value of this investment.
(17)	Represents securities in Level 1 of the valuation hierarchical levels. Money Market investments are deemed to be cash equivalents and are not included in the ASC 820 table (see Note 4).

See accompanying notes to consolidated financial statements.

F-12

Table of Contents

Sierra Income Corporation

Consolidated Schedule of Investments

As of December 31, 2020

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Non-controlled/non-affiliated investments –	89.9%

AAAHI Acquisition Corporation	Transportation: Consumer	Senior Secured First Lien Term Loan LIBOR + 8.250%, 1.000% Floor ⁽⁴⁾ ^{(5) (13)}	12/10/2023	$	7,110,546	$	6,975,416	$	4,977,382		0.9	%
					7,110,546		6,975,416		4,977,382
Alpine SG, LLC	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(5) (6)}	11/16/2022		1,262,051		1,230,864		1,298,524		0.2	%
		Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.750%, 1.000% Floor ^{(5) (6)}	11/16/2022		6,165,725		6,165,633		6,102,218		1.2	%
		Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor ^{(5) (6)}	11/16/2022		12,529,258		12,517,772		12,400,207		2.4	%
		Senior Secured First Lien Revolving Credit Facility LIBOR + 5.750%, 1.000% Floor ^{(5) (6)}	11/16/2022		1,000,000		1,000,000		989,700		0.2	%
					20,957,034		20,914,269		20,790,649
American Dental Partners, Inc.	Healthcare & Pharmaceuticals	Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(4) (5)}	9/25/2023		4,893,750		4,893,750		4,704,362		0.9	%
					4,893,750		4,893,750		4,704,362
Amerijet Holdings, Inc.	Transportation: Cargo	Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(5) (6)}	7/15/2021		2,952,518		2,952,518		2,952,518		0.6	%
					2,952,518		2,952,518		2,952,518
AMMC CLO 22, Limited Series 2018-22A	Multi-Sector Holdings	Subordinated Notes 13.429% effective yield ⁽⁷⁾ ^{(8) (9)}	4/25/2031		7,222,000		5,402,828		4,786,019		0.9	%
					7,222,000		5,402,828		4,786,019
AMMC CLO 23, Ltd. Series 2020-23A	Multi-Sector Holdings	Subordinated Notes 19.100% effective yield ⁽⁷⁾ ^{(8) (9)}	10/17/2031		2,000,000		1,688,071		1,688,000		0.3	%
					2,000,000		1,688,071		1,688,000
Answers Finance, LLC	High Tech Industries	Common Stock - 388,533 shares ⁽¹⁰⁾			—		5,076,376		493,437		0.1	%
					—		5,076,376		493,437
Apidos CLO XXIV, Series 2016-24A	Multi-Sector Holdings	Subordinated Notes 8.894% effective yield ^{(5) (7)} ^{(8) (9)}	7/20/2027		18,357,647		10,342,024		8,402,295		1.6	%
					18,357,647		10,342,024		8,402,295
Arrow International Inc.	Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan LIBOR + 7.250%, 1.250% Floor ⁽⁶⁾	12/21/2025		10,000,000		10,000,000		10,000,000		1.9	%
					10,000,000		10,000,000		10,000,000
Avantor, Inc.	Wholesale	Common Stock - 27,252 shares ^{(5) (8)} ^{(10) (11)}			—		467,171		767,144		0.1	%
					—		467,171		767,144
Aviation Technical Services, Inc.	Aerospace & Defense	Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(4) (5)}	3/31/2022		25,000,000		25,000,000		21,795,000		4.1	%
					25,000,000		25,000,000		21,795,000

F-13

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
BRG Sports, Inc.	Consumer Goods: Durable	Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor ^{(5) (6)}	6/15/2023		3,480,384		3,474,606		3,445,232		0.7	%
					3,480,384		3,474,606		3,445,232
Brook & Whittle Holding Corp.	Containers, Packaging & Glass	Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.250%, 1.000% Floor ^{(4) (5)}	10/17/2024		699,967		697,464		682,888		0.1	%
		Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor ^{(4) (5)}	10/17/2024		2,976,219		2,965,575		2,903,599		0.6	%
					3,676,186		3,663,039		3,586,487
Callaway Golf Co.	Consumer Goods: Durable	Senior Secured First Lien Term Loan LIBOR + 4.500%, 1.000% Floor ^{(5) (6)}	1/4/2026		46,000		45,422		46,060		—	%
					46,000		45,422		46,060
CM Finance SPV LLC	Banking, Finance, Insurance & Real Estate	Subordinated Notes 3.000% ⁽⁵⁾	6/24/2021		35,600		35,600		35,600		—	%
					35,600		35,600		35,600
CPI International, Inc.	Aerospace & Defense	Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor ^{(5) (6)}	7/28/2025		8,575,302		8,558,896		7,928,725		1.5	%
					8,575,302		8,558,896		7,928,725
CT Technologies Intermediate Holdings, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ^{(5) (6)}	12/16/2025		7,000,000		6,965,245		6,965,000		1.3	%
					7,000,000		6,965,245		6,965,000
DataOnline Corp.	High Tech Industries	Revolving Credit Facility LIBOR + 6.250%, 1.000% Floor ⁽⁴⁾ ^{(5) (12)}	11/13/2025		1,821,429		1,821,429		1,765,929		0.3	%
		Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor ^{(4) (5)}	11/13/2025		14,850,000		14,850,000		14,465,385		2.8	%
					16,671,429		16,671,429		16,231,314
Delta Air Lines, Inc.	Transportation: Consumer	Senior Secured First Lien Notes 4.750% ⁽⁵⁾ ^{(7) (8)}	10/20/2028		1,000,000		1,000,000		1,090,700		0.2	%
					1,000,000		1,000,000		1,090,700
Dryden 38 Senior Loan Fund, Series 2015-38A	Multi-Sector Holdings	Subordinated Notes 11.373% effective yield ⁽⁷⁾ ^{(8) (9)}	7/15/2027		7,000,000		4,308,139		3,598,000		0.7	%
					7,000,000		4,308,139		3,598,000
Dryden 43 Senior Loan Fund, Series 2016-43A	Multi-Sector Holdings	Subordinated Notes 8.262% effective yield ^{(5) (7)} ^{(8) (9)}	7/20/2029		3,620,000		2,513,635		1,901,586		0.4	%
					3,620,000		2,513,635		1,901,586
Dryden 49 Senior Loan Fund, Series 2017-49A	Multi-Sector Holdings	Subordinated Notes 9.989% effective yield ^{(5) (7)} ^{(8) (9)}	7/18/2030		17,233,288		12,375,842		9,498,988		1.8	%
					17,233,288		12,375,842		9,498,988
Envision Healthcare Corporation	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 3.750% ^{(5) (6)}	10/10/2025		49,000		33,226		40,734		—	%
					49,000		33,226		40,734
First Boston Construction Holdings, LLC	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Notes 12.000% ⁽⁵⁾	2/23/2023		7,473,750		7,473,750		7,458,055		1.4	%
		Preferred Equity - 2,304,406 units ^{(5) (10)}			—		1,868,437		1,307,906		0.2	%
					7,473,750		9,342,187		8,765,961
Friedrich Holdings, Inc.	Construction & Building	Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor ^{(5) (6)}	2/7/2023		10,421,300		10,421,300		10,263,938		2.0	%
					10,421,300		10,421,300		10,263,938
GK Holdings, Inc.	Services: Business	Senior Secured Second Lien Term Loan LIBOR + 10.250%, 1.000% Floor ^{(4) (13)}	1/20/2022		10,000,000		10,000,000		5,500,000		1.0	%
					10,000,000		10,000,000		5,500,000

F-14

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Glass Mountain Pipeline Holdings, LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan LIBOR + 4.500%, 1.000% Floor ⁽⁵⁾ ^{(6) (13)}	12/23/2024		48,625		23,389		24,434		—	%
					48,625		23,389		24,434
Golden West Packaging Group LLC	Forest Products & Paper	Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor ^{(5) (6)}	6/20/2023		1,405,738		1,405,738		1,404,332		0.3	%
					1,405,738		1,405,738		1,404,332
Holland Acquisition Corp.	Energy: Oil & Gas	Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor ⁽⁴⁾ ^{(13) (14)}	5/29/2020		3,857,305		3,733,979		108,310		—	%
					3,857,305		3,733,979		108,310
Hylan Datacom & Electrical LLC	Construction & Building	Senior Secured First Lien Term Loan LIBOR + 10.000%, 1.000% Floor ^{(4) (5)}	7/25/2022		15,255,390		15,255,390		10,983,881		2.1	%
					15,255,390		15,255,390		10,983,881
Impact Group, LLC	Services: Business	Senior Secured First Lien Term Loan LIBOR + 7.370%, 1.000% Floor ^{(4) (5)}	6/27/2023		5,734,462		5,734,462		5,548,092		1.1	%
					5,734,462		5,734,462		5,548,092
Innovative XCessories & Services, LLC	Automotive	Senior Secured First Lien Term Loan LIBOR + 5.200%, 1.000% Floor ^{(4) (5)}	3/5/2027		2,976,933		2,950,524		2,979,016		0.6	%
					2,976,933		2,950,524		2,979,016
Interflex Acquisition Company, LLC	Containers, Packaging & Glass	Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(5) (6)}	8/18/2022		11,553,578		11,543,801		11,533,937		2.2	%
					11,553,578		11,543,801		11,533,937
Iqor US Inc.	Services: Business	Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor ^{(5) (6)}	11/19/2024		3,471,136		3,388,625		3,401,713		0.6	%
		Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor ^{(5) (6)}	11/19/2025		7,734,435		7,734,435		7,734,435		1.5	%
		Equity - 246,857 Shares			—		2,962,285		3,085,713		0.6	%
					11,205,571		14,085,345		14,221,861
Isagenix International, LLC	Wholesale	Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor ^{(4) (5)}	6/16/2025		1,776,911		1,745,748		978,900		0.2	%
					1,776,911		1,745,748		978,900
Isola USA Corp.	High Tech Industries	Senior Secured Second Lien Term Loan LIBOR + 9.500%, 1.000% Floor, PIK ⁽⁴⁾ ^{(12) (13)}	1/2/2023		11,331,641		7,016,631		8,498,730		1.6	%
		Common Units - 10,283,782 units ⁽¹⁰⁾			—		—		—		—	%
					11,331,641		7,016,631		8,498,730
Ivanti Software, Inc.	High Tech Industries	Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(5) (6)}	12/1/2028		6,000,000		6,000,000		5,947,800		1.1	%
					6,000,000		6,000,000		5,947,800
JFL-WCS Partners, LLC	Environmental Industries	Preferred units - 618,876 6.000%, PIK ⁽⁵⁾			—		659,447		709,806		0.1	%
		Common Units - 70,412 units ^{(5) (10)}			—		98,052		5,069,664		1.0	%
					—		757,499		5,779,470

F-15

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Keystone Acquisition Corp.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor ^{(4) (5)}	5/1/2024		1,784,130		1,736,823		1,614,638		0.3	%
		Senior Secured Second Lien Term Loan LIBOR + 9.250%, 1.000% Floor ^{(4) (5)}	5/1/2025		7,000,000		6,921,915		6,127,800		1.2	%
					8,784,130		8,658,738		7,742,438
LogMeIn, Inc.	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 7.750%, 1.000% Floor ⁽⁵⁾ ^{(6) (8)}	8/31/2027		1,000,000		980,865		995,300		0.2	%
					1,000,000		980,865		995,300
Magnetite XIX, Limited	Multi-Sector Holdings	Subordinated Notes LIBOR + 7.610% ^{(4) (7)} ^{(8) (9)}	7/17/2030		2,000,000		1,893,387		1,745,800		0.3	%
		Subordinated Notes 9.779% effective yield ^{(5) (7)} ^{(8) (9)}	7/17/2030		13,730,209		9,451,985		7,493,948		1.4	%
					15,730,209		11,345,372		9,239,748
Midwest Physician Administrative Services, LLC	Healthcare & Pharmaceuticals	Senior Secured Second Lien Term Loan LIBOR + 7.000%, 0.750% Floor ⁽⁶⁾	8/15/2025		2,000,000		1,935,192		1,945,000		0.4	%
					2,000,000		1,935,192		1,945,000
Novetta Solutions, LLC	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ^{(5) (6)}	10/17/2022		1,560,779		1,522,514		1,521,291		0.3	%
		Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(5) (6)}	10/16/2023		11,000,000		10,951,758		10,574,300		2.0	%
					12,560,779		12,474,272		12,095,591
Offen Inc.	Transportation: Cargo	Senior Secured First Lien Term Loan LIBOR + 5.000% ^{(5) (6)}	6/21/2026		2,893,982		2,871,192		2,793,272		0.5	%
		Senior Secured First Lien Term Loan LIBOR + 5.000% ^{(5) (6)}	6/21/2026		1,061,947		1,053,584		1,024,991		0.2	%
					3,955,929		3,924,776		3,818,263
Path Medical, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 13.000%, 1.000% Floor, PIK ^{(4) (5)} ^{(6) (13)}	10/11/2021		10,752,249		8,860,931		1,075,225		0.2	%
		Senior Secured First Lien Term Loan LIBOR + 9.500%, 1.000% Floor, PIK ⁽⁴⁾ ^{(5) (6)}	10/11/2021		7,943,176		7,943,176		7,943,176		1.5	%
		Warrants - 36,716 warrants ^{(5) (10)}	1/9/2027		—		669,709		—		—	%
					18,695,425		17,473,816		9,018,401
PetroChoice Holdings, Inc.	Chemicals, Plastics & Rubber	Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor ^{(4) (5)}	8/21/2023		9,000,000		9,000,000		8,010,000		1.5	%
					9,000,000		9,000,000		8,010,000
Polymer Solutions Group Holdings, LLC	Chemicals, Plastics & Rubber	Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor ^{(5) (6)}	6/30/2021		1,064,355		1,060,861		1,053,498		0.2	%
					1,064,355		1,060,861		1,053,498
Project Silverback Holdings Corp.	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 3.500%, 1.000% Floor ⁽⁴⁾	8/21/2024		4,837,500		4,403,234		4,819,601		0.9	%
					4,837,500		4,403,234		4,819,601
Proppants Holdings, LLC	Energy: Oil & Gas	Common Units - 161,852 units ⁽¹⁰⁾			—		874,363		323,704		0.1	%
		Common Units - 161,852 units ⁽¹⁰⁾			—		8,832		—		—	%
					—		883,195		323,704
PT Network, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 5.500%, 1.000% Floor, 2.00% PIK ^{(5) (17)}	11/30/2023		8,072,834		7,729,742		7,427,007		1.4	%
		Membership Units - 1.441 units ^{(5) (10)}			—		—		—		—	%
					8,072,834		7,729,742		7,427,007

F-16

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
RateGain Technologies, Inc.	Hotel, Gaming & Leisure	Subordinated Notes ⁽⁵⁾ ^{(10) (14)}	7/31/2020		440,050		440,049		—		—	%
		Subordinated Notes ^{(5) (10)}	7/31/2021		476,190		476,190		—		—	%
					916,240		916,239		—
Redwood Services Group, LLC	Services: Business	Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(5) (6)}	6/6/2023		4,000,000		4,000,000		4,000,000		0.8	%
		Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor ^{(5) (6)}	6/6/2023		12,611,712		12,611,712		12,267,412		2.3	%
		Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(5) (6)}	6/6/2023		10,730,528		10,713,091		10,472,305		2.0	%
		Revolving Credit Facility LIBOR + 6.000%, 1.000% Floor ⁽⁵⁾ ^{(6) (12)}	6/6/2023		287,500		287,500		208,725		—	%
					27,629,740		27,612,303		26,948,442
Resolute Investment Managers, Inc.	Banking, Finance, Insurance & Real Estate	Senior Secured Second Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(5) (6)}	4/30/2025		6,000,000		5,970,877		5,943,600		1.1	%
					6,000,000		5,970,877		5,943,600
Rhombus Cinema Holdings, LP	Media: Diversified & Production	Preferred Equity - 7,449 shares 10.000% PIK ⁽⁵⁾ ^{(10) (13)}			—		4,584,207		—		—	%
		Common Units - 3,163 units ⁽⁵⁾ ^{(7) (10)}			—		2,864,831		—		—	%
		Common Units - 3,163 units ⁽⁵⁾ ^{(7) (10)}			—		297,962		—		—	%
					—		7,747,000		—
RTIC Subsidiary Holdings, LLC	Consumer Goods: Durable	Senior Secured First Lien Term Loan LIBOR + 7.750%, 1.250% Floor ⁽⁴⁾ ^{(5) (12)}	9/1/2025		10,000,000		10,000,000		10,000,000		1.9	%
		Preferred Class A units - 142.50 units ⁽¹⁰⁾			—		142,500		142,500		—	%
		Preferred Class B units - 142.50 units ⁽¹⁰⁾			—		142,500		142,500		—	%
		Common units - 150 units ⁽¹⁰⁾			—		15,000		15,000		—	%
					10,000,000		10,300,000		10,300,000
SavATree, LLC	Environmental Industries	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ^{(4) (5)}	6/2/2022		4,283,931		4,283,931		4,273,221		0.8	%
					4,283,931		4,283,931		4,273,221
SFP Holding, Inc.	Construction & Building	Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor ⁽⁴⁾ ^{(5) (12)}	9/1/2022		16,560,532		16,540,362		16,560,532		3.1	%
		Equity - 0.803% of outstanding equity ^{(5) (10)}			—		711,698		548,007		0.1	%
					16,560,532		17,252,060		17,108,539
Simplified Logistics, LLC	Services: Business	Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor ^{(4) (5)}	2/28/2022		17,323,831		17,323,831		17,058,776		3.2	%
		Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor ^{(4) (5)}	2/28/2022		971,277		971,277		956,417		0.2	%
		Revolving Credit Facility LIBOR + 6.500%, 1.000% Floor ^{(4) (5)}	2/28/2022		3,533,333		3,533,333		3,482,807		0.7	%
					21,828,441		21,828,441		21,498,000
SMART Financial Operations, LLC	Retail	Preferred Equity - 1,000,000 units ^{(5) (10)}			—		1,000,000		490,000		0.1	%
					—		1,000,000		490,000

F-17

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Smile Doctors, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor ^{(4) (5)}	10/6/2022		13,805,148		13,786,625		13,587,027		2.6	%
					13,805,148		13,786,625		13,587,027
Sound Point CLO XX, Ltd.	Multi-Sector Holdings	Subordinated Notes 8.553% effective yield ^{(5) (7)} ^{(8) (9)}	7/26/2031		4,489,000		3,508,513		2,824,030		0.5	%
					4,489,000		3,508,513		2,824,030
Starfish Holdco, LLC	High Tech Industries	Senior Secured Second Lien Term Loan LIBOR + 9.000%, 1.000% Floor ^{(4) (5)}	8/18/2025		2,000,000		1,982,268		1,919,600		0.4	%
					2,000,000		1,982,268		1,919,600
Team Car Care, LLC	Automotive	Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(4) (5)}	2/23/2023		13,624,819		13,624,819		13,529,446		2.6	%
					13,624,819		13,624,819		13,529,446
Team Services Group	Services: Consumer	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ^{(5) (6)}	12/20/2027		5,000,000		4,850,000		4,825,000		0.9	%
		Senior Secured Second Lien Term Loan LIBOR + 9.000%, 1.000% Floor ^{(5) (6)}	12/18/2028		5,000,000		4,850,000		4,900,000		0.9	%
					10,000,000		9,700,000		9,725,000
The Octave Music Group, Inc.	Media: Diversified & Production	Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor, 0.75% PIK ^{(5) (6)}	5/29/2025		7,793,103		7,727,145		6,780,000		1.3	%
					7,793,103		7,727,145		6,780,000
True Religion Apparel, Inc.	Retail	Senior Secured First Lien Term Loan 10.000% ⁽¹³⁾	10/27/2022		179,437		133,654		12,094		—	%
		Common Stock - 2,448 shares ⁽¹⁰⁾			—		—		—		—	%
		Warrants - 1,122 warrants ⁽¹⁰⁾			—		—		—		—	%
					179,437		133,654		12,094
Velocity Pooling Vehicle, LLC	Automotive	Senior Secured First Lien Term Loan LIBOR + 11.000%, 1.000% Floor ^{(4) (5)}	4/28/2023		871,784		838,397		871,784		0.2	%
		Common Units - 4,676 units ^{(5) (10)}			—		259,937		11,035		—	%
		Warrants - 5,591 warrants ^{(5) (10)}	3/30/2028		—		310,802		13,195		—	%
					871,784		1,409,136		896,014
VOYA CLO 2015-2, LTD.	Multi-Sector Holdings	Subordinated Notes 0.516% effective yield ^{(5) (7)} ^{(8) (9)}	7/19/2028		10,735,659		5,792,260		3,657,639		0.7	%
					10,735,659		5,792,260		3,657,639
VOYA CLO 2016-2, LTD.	Multi-Sector Holdings	Subordinated Notes 2.808% effective yield ^{(5) (7)} ^{(8) (9)}	7/19/2028		11,088,290		7,333,317		4,407,595		0.8	%
					11,088,290		7,333,317		4,407,595
Walker Edison Furniture Company LLC	Consumer Goods: Durable	Senior Secured First Lien Term Loan LIBOR + 8.750%, 1.000% Floor ^{(4) (5)}	9/26/2024		1,975,000		1,975,000		1,975,000		0.4	%
		Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor ^{(4) (5)}	9/26/2024		14,250,000		14,250,000		14,250,000		2.7	%
		Common Units - 2,000 units ^{(5) (10)}			—		2,000,000		11,000,000		2.1	%
					16,225,000		18,225,000		27,225,000
Watermill-QMC Midco, Inc.	Automotive	Equity - 1.62% partnership interest ^{(5) (10)}			—		902,277		—		—	%
					—		902,277		—
Wawona Delaware Holdings, LLC	Beverage & Food	Senior Secured First Lien Term Loan LIBOR + 4.750% ^{(4) (5)}	9/11/2026		49,375		46,869		48,141		—	%
					49,375		46,869		48,141
West Dermatology, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor ⁽⁵⁾ ^{(6) (12)}	2/11/2025		726,672		726,672		613,498		0.1	%
		Revolving Credit Facility LIBOR + 6.000%, 1.000% Floor, 0.75% PIK ^{(5) (6)}	2/11/2025		1,657,459		1,657,459		1,614,033		0.3	%
		Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor, 0.750% PIK ^{(5) (6)}	2/11/2025		4,739,503		4,739,503		4,617,698		0.9	%
					7,123,634		7,123,634		6,845,229
Wok Holdings Inc.	Retail	Senior Secured First Lien Term Loan LIBOR + 6.250%, ^{(5) (6)}	3/1/2026		49,125		33,080		42,758		—	%
					49,125		33,080		42,758

Total non-controlled/non-affiliated investments						$	521,483,006	$	472,813,820		89.9	%

F-18

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
1888 Industrial Services, LLC	Energy: Oil & Gas	Revolving Credit Facility LIBOR + 5.000%, 1.000% Floor ⁽⁴⁾ ^{(5) (12)}	9/30/2021		1,243,924		1,243,924		1,243,924		0.2	%
		Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ⁽⁴⁾ ^{(5) (13)}	9/30/2021		431,176		403,717		431,176		0.1	%
		Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor, PIK ⁽⁴⁾ ^{(5) (13)}	9/30/2021		3,534,740		3,315,574		—		—	%
		Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor, PIK ⁽⁴⁾ ^{(5) (13)}	9/30/2021		9,286,929		6,816,029		—		—	%
		Units - 6,122.765 units ^{(5) (10)}			—		—		—		—	%
					14,496,769		11,779,244		1,675,100
Black Angus Steakhouses, LLC	Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor, PIK ⁽⁵⁾ ^{(6) (13)}	6/30/2022		21,573,552		20,457,589		9,060,892		1.7	%
		Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor ^{(5) (6)}	6/30/2022		1,897,321		1,897,321		1,897,321		0.4	%
		Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor ^{(6) (12)}	6/30/2022		3,055,556		3,055,556		3,055,556		0.6	%
		Equity - 44.60% of outstanding equity ^{(5) (10)}			—		—		—		—	%
					26,526,429		25,410,466		14,013,769
Caddo Investors Holdings 1 LLC	Forest Products & Paper	Equity - 12.250% LLC Interest ^{(5) (16)}			—		5,072,149		6,366,372		1.2	%
					—		5,072,149		6,366,372
Charming Charlie LLC	Retail	Senior Secured First Lien Delayed Draw Term Loan 20.000% ^{(13) (14)}	5/15/2020		769,967		769,968		396,225		0.1	%
		Senior Secured First Lien Term Loan LIBOR + 10.000%, 1.000% Floor ^{(4) (13)}	4/24/2023		7,590,773		5,859,128		—		—	%
		Senior Secured First Lien Term Loan 20.000% ^{(13) (14)}	5/15/2020		138,517		138,517		71,281		—	%
		Common Stock - 34,923,249 shares ⁽¹⁰⁾			—		—		—		—	%
					8,499,257		6,767,613		467,506
Dynamic Energy Services International LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan 13.500% PIK ⁽⁴⁾ ^{(5) (13)}	12/31/2021		7,049,577		4,449,025		493,470		0.1	%
		Common Units - 6,500,000 shares ^{(5) (10)}			—		—		—		—	%
					7,049,577		4,449,025		493,470
Kemmerer Operations, LLC	Metals & Mining	Senior Secured First Lien Term Loan 15.000% PIK ⁽⁵⁾	6/21/2023		2,130,353		2,130,353		2,130,353		0.4	%
		Senior Secured First Lien Delayed Draw Term Loan 15.000% PIK ^{(5) (12)}	6/21/2023		399,366		399,366		399,366		0.1	%
		Common Units - 6.7797 units ^{(5) (10)}			—		962,717		962,760		0.2	%
					2,529,719		3,492,436		3,492,479
MCM 500 East Pratt Holdings, LLC	Banking, Finance, Insurance & Real Estate	Equity - 5,000,000 units ^{(8) (10)}			—		5,000,000		7,350,000		1.4	%
					—		5,000,000		7,350,000
MCM Capital Office Park Holdings LLC	Banking, Finance, Insurance & Real Estate	Equity - 7,500,000 units ^{(8) (10)}			—		7,500,000		15,525,000		3.0	%
					—		7,500,000		15,525,000
Sierra Senior Loan Strategy JV I LLC	Multi-Sector Holdings	Equity - 89.01% ownership of SIC Senior Loan Strategy JV I LLC ^{(8) (16)}			—		110,050,000		81,788,964		15.6	%
					—		110,050,000		81,788,964


Total controlled/affiliated investments⁽¹⁵⁾						$	179,520,933	$	131,172,660		25.0	%

Total investments						$	701,003,939	$	603,986,480		114.9	%

Money Market Fund - 32.5%
Federated Institutional Prime Obligations Fund		Money Market 0.150% ⁽¹¹⁾			25,401,625		25,401,625		25,401,625		4.8	%
State Street Institutional Liquid Reserves Fund		Money Market 0.010% ⁽¹¹⁾			12,683,935		12,686,471		12,685,203		2.4	%
Total money market fund				$	38,085,560	$	38,088,096	$	38,086,828		7.2	%

F-19

Table of Contents

(1)

All of the Company's investments are domiciled in the United States except for AMMC CLO 22, Limited Series 2018-22A, AMMC CLO 23, Limited Series 2020-23A, Apidos CLO XXIV, Series 2016-24A, Dryden 38 Senior Loan Fund, Series 2015-38A, Dryden 43 Senior Loan Fund, Series 2016-43A, Dryden 49 Senior Loan Fund, 2017-49A, Magnetite XIX, Limited, Sound Point CLO XX, Ltd., VOYA CLO 2016-2, LTD., and VOYA CLO 2015-2, LTD., which are all domiciled in the Cayman Islands. All foreign investments were denominated in US Dollars.

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

(3)	Percentage is based on net assets of $525,740,939 as of December 31, 2020.

(4)	The interest rate on these loans is subject to a base rate plus 3 Month "3M" LIBOR, which at December 31, 2020 was 0.24%. The interest rate is subject to a minimum LIBOR floor.

(5)	An affiliated fund that is managed by an affiliate of SIC Advisors LLC also holds an investment in this security.

(6)	The interest rate on these loans is subject to a base rate plus 1 Month "1M" LIBOR, which at December 31, ~~2016,~~2020 was 0.14%. The interest rate is subject to a minimum LIBOR floor.

(7)

Securities are exempt from registration under Rule 144A of the ~~prevailing rate in effect at~~Securities Act of 1933, as amended (the "Securities Act"). These securities represent a fair value of $51,094,601 or 9.7% of net assets as of December 31, ~~2016 was~~2020 and are considered restricted securities.

(8)	The investment is not a qualifying asset under Section 55 of the ~~base rate plus~~Investment Company Act of 1940, as amended (the "1940 Act"). Non-qualifying assets represent 30.0% of the ~~LIBOR floor.~~Company's portfolio at fair value.

~~(15)~~

(9)

This investment is in the equity class of a collateralized loan obligation ("CLO"). The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield is based on the current projections of this excess cash flow taking into account assumptions that have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions.

(10)	Security is non-income producing.

(11)	Represents securities in Level 1 in the ASC 820 table (see Note 4).

~~(16)~~

(12)

The investment has an unfunded commitment as of December 31, 2020. For further details see Note 10. Fair value includes an analysis of the unfunded commitment.

(13)	The investment was on non-accrual status as of December 31, 2020.

(14)	The investment is past due as of December 31, 2020.

(15)	Affiliate Investments are defined by the 1940 Act as investments in companies in which the Company owns at least 5% but no more than 25% of the voting securities or we are under common control with such portfolio company. Control Investments are defined by the 1940 Act as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.
~~(17)~~(16)	~~A portion~~As a practical expedient, the Company uses NAV to determine the fair value of this ~~investment~~investment.
(17)	The interest rate on these loans is subject to a base rate plus 6 Month "6M" LIBOR, which at December 31, 2020 was ~~sold via~~0.34%. The interest rate is subject to a ~~participation agreement. The listed amount is the portion retained by Sierra Income Corporation.~~ minimum LIBOR floor.

See accompanying notes to consolidated financial statements.

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Table of Contents

SIERRA INCOME CORPORATION

Notes to Consolidated Financial Statements

June 30, 2021

(unaudited)

~~September 30, 2017~~

~~(unaudited)~~

Note 1. Organization

Sierra Income Corporation (the “Company”) was incorporated under the general corporation laws of the State of Maryland on June 13, 2011 and formally commenced operations on April 17, 2012. The Company is an externally managed, non-diversified closed-end management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the "1940 Act"). The Company is externally managed by SIC Advisors LLC (“SIC Advisors”), aan investment adviser registered ~~investment adviser~~with the Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). SIC Advisors is a ~~majority~~wholly owned subsidiary of Medley LLC, which is controlled by Medley Management Inc., ~~a publicly traded~~an asset management firm ~~(NYSE: MDLY)~~("MDLY"), which in turn is controlled by Medley Group LLC, an entity wholly-owned by the senior professionals of Medley LLC. The term “Medley” refers to the collective activities of Medley Capital LLC, Medley LLC, ~~Medley Management Inc.,~~MDLY, Medley Group LLC, SIC Advisors, associated investment funds and their respective affiliates. The Company has elected, and intends to ~~continue 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 fiscal year-end is December 31^st.

31.

On April 17, 2012, the Company successfully reached its minimum escrow requirement and officially commenced operations by issuing 1,108,033 shares of common stock to SIC Advisors for gross proceeds of $10,000,000. ~~The~~On July 2, 2018, the Company’s board of directors determined to terminate the Company’s offering ~~period is currently scheduled to terminate on April 17,~~effective as of July 31, 2018. Through July 31, 2018, ~~unless further extended. As of September 30, 2017,~~ the Company ~~has~~ sold a total of ~~96,300,123~~108,727,717 shares of common stock, which includes shares issued as part of the distribution reinvestment plan (see Note ~~13), for total proceeds of $1.0 billion, which includes~~12) and the shares sold to SIC ~~Advisors.~~Advisors, for total gross proceeds of $1.0 billion. The proceeds from the issuance of common stock are presented in the Company’s ~~consolidated statements~~Consolidated Statements of ~~changes~~Changes in ~~net assets~~Net Assets and ~~consolidated statements~~Consolidated Statements of ~~cash flows~~Cash Flows and are presented net of selling commissions and dealer manager fees.

~~On August 15, 2013, the Company formed Arbor Funding LLC ("Arbor"), a wholly-owned financing subsidiary.~~

On June 18, 2014, the Company formed Alpine Funding LLC ("Alpine"), a wholly-owned financing subsidiary.

On July 2, 2020, the Company purchased STRF Holdings LLC ("STRF"), a wholly-owned subsidiary.

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

The Company’s investment objective is to generate current income, and to a lesser extent, long-term capital appreciation. The Company intends to meet its investment objective by investing primarily in the debt of privately owned U.S. companies with a focus on senior secured debt, second lien debt and, to a lesser extent, subordinated debt. The Company will originate transactions sourced through SIC Advisors’ direct origination network, and also expects to acquire debt securities through the secondary market. The Company may make equity investments in companies that it believes will generate appropriate risk adjusted returns, although it does not expect such investments to be a substantial portion of the portfolio.

Note 2. Significant Accounting Policies

Basis of Presentation

The Company follows the accounting and reporting guidance in the Financial Accounting Standards Board Accounting Standards Codification ("ASC") Topic 946 - Financial Services, Investment Companies ("ASC 946"). The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles ("GAAP") and ~~include~~includes the accounts of the Company and its wholly-owned subsidiaries, Alpine ~~Arbor,~~ and the Taxable Subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. All references made to the "Company," "we," and "us" herein include Sierra Income Corporation and its consolidated subsidiaries, except as stated otherwise. Additionally, the accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation ~~S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. In~~S-X of the ~~opinion~~Securities Act of ~~management, the unaudited interim financial results contain all adjustments~~1933. All intercompany balances and ~~reclassifications, which are of a normal recurring nature, that are necessary for the fair presentation of financial statements for the periods presented.~~transactions have been eliminated. Therefore, this Form 10-Q should be read in conjunction with the Company’s annual report on Form 10-K for the year ended December 31, ~~2016,~~2020, which was filed with the ~~U.S. Securities and Exchange Commission ("SEC")~~SEC on March ~~7, 2017.~~19, 2021. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, ~~2017.~~

2021.

Cash and Cash Equivalents

The Company considers cash equivalents to be highly liquid investments or investments with original maturities of three months or less. Cash and cash equivalents include deposits in money market mutual funds. The Company deposits its cash in major ~~United States~~U.S. financial institutions which, at times, may be in excess of the Federal Deposit Insurance Corporation insurance limits.

~~Offering Costs~~

~~Offering costs incurred directly by the Company are expensed in the period incurred.~~

Use of Estimates in the Preparation of Financial Statements

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

Deferred Financing Costs

Financing costs, incurred in connection with the Company’s credit facilities (see Note 6)5), are deferred and amortized over the life of each corresponding facility.

Indemnification

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

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Table of Contents

Revenue Recognition

Interest income, adjusted for amortization of premiums and accretion of discounts, is recorded on an accrual basis. The Company records amortized or accreted discounts or premiums as interest income using the effective interest method. Dividend income, which represents dividends from equity investments and distributions from subsidiaries, if any, is recognized on an accrual basis to the extent that the Company expects to collect such amount.

Fee income associated with investments in portfolio companies is recognized as income in the period that the Company becomes entitled to such fees. Other fees related to loan administration requirements are capitalized as deferred revenue and recorded into income over the respective period.

Prepayment penalties received by the Company for debt instruments paid back to the Company prior to the maturity date are recorded as income upon receipt.

The Company holds debt investments that contain a payment-in-kind ~~(PIK)~~("PIK") interest provision. PIK interest, which represents contractually deferred interest added to the investment balance that is generally due at maturity, is recorded on an accrual basis to the extent such amounts are expected to be collected. PIK interest is not accrued if the Company does not expect the issuer to be able to pay all principal and interest when due. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, the Company earned ~~$1,574,504~~PIK interest of $640,280 and ~~$4,432,952 in PIK interest,~~$1,170,910, respectively. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2020, the Company earned ~~$236,353 and $3,722,884 in~~ PIK interest of $588,472 and $1,240,280, respectively.

Investment transactions are accounted for on a trade-date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the amortized cost basis of investment, without regard to unrealized gains or losses previously recognized. ~~During~~For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, the Company ~~recognized $5,469,025 and $16,230,521 in~~did not recognize any realized gains or losses ~~respectively,~~ related to certain non-cash restructuring ~~transactions, which is recorded on~~transactions. For the ~~consolidated statements of operations as a component of net realized gain/(loss) from non-controlled/non-affiliated investments. During the~~ three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2020, the Company ~~recognized $11,844,083 in~~did not recognize any realized gains or losses ~~respectively,~~ related to certain non-cash restructuring ~~transactions, which is recorded on the consolidated statements of operations as a component of net realized gain/(loss) from non-controlled/non-affiliated investments..~~transactions. The Company reports changes in fair value of investments that are measured at fair value as a component of the net change in unrealized appreciation/(depreciation) on investments in the ~~consolidated statements~~Consolidated Statements of ~~operations. For total return swap transactions (see Note 5), periodic payments are received or made at the~~

~~end of each settlement period, but prior to settlement are recorded as realized gains or losses on total return swap in the consolidated statements of operations.~~

Operations.

Management reviews all loans that become 90 days or more past due on principal and interest or when there is reasonable doubt that principal or interest will be collected for possible placement on management's designation of non-accrual status. 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 income or applied to principal depending upon management’s judgment regarding collectability. ~~Non-accrual loans~~Loans on non-accrual status are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although the Company may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection. As of ~~September~~June 30, ~~2017, seven~~2021, certain investments in eleven portfolio companies were on non-accrual status with a combined cost of ~~$52,120,295~~$81,560,703, or 11.8% of the cost of the Company's portfolio, and a combined fair value of ~~$30,770,262,~~$31,438,283, or ~~2.88%~~5.0% of the fair value of the Company's portfolio. As of December 31, ~~2016, seven~~2020, certain investments in twelve portfolio companies were on non-accrual status with a combined cost of ~~$57,135,673~~$83,537,754, or 11.9% of the cost of the Company's portfolio, and a combined fair value of ~~$35,022,807,~~$30,649,219, or ~~3.56%~~5.1% of the fair value of the Company's portfolio.

Interest income from investments in the “equity” class of a collateralized loan obligation ("CLO") security (typically subordinated notes) is recorded based upon an estimation of an effective yield to expected maturity utilizing assumed cash flows in accordance with ASC 325-40, Beneficial Interests in Securitized Financial Assets. The Company monitors the expected cash flows from these investments, including the expected residual payments, and the effective yield is determined and updated periodically. Any difference between the cash distribution received and the amount calculated pursuant to the effective interest method is recorded as an adjustment to the cost basis of such investments.

Investment Classification

The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, the Company would be deemed to “control” a portfolio company if it owns more than 25% of its outstanding voting securities and/or had the power to exercise control over the management or policies of such portfolio company. The Company refers to such investments in portfolio companies that it “controls” as “Controlled Investments.” Under the 1940 Act, the Company would be deemed to be an “Affiliated Person” of a portfolio company if it owns at least 5%, but no more than 25%, of the portfolio company’s outstanding voting securities or if it is under common control with such portfolio company. The Company refers to such investments in Affiliated Persons as “Affiliated Investments.”

Valuation of Investments

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

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Table of Contents

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

Investments in investment companies are valued at fair value. Fair values are generally determined utilizing the net asset value ("NAV") supplied by, or on behalf of, management of each investment company, which is net of management and incentive fees or allocations charged by the investment company and is in accordance with the "practical expedient", as defined by ASC 820. NAVs received by, or on behalf of, management of each investment company are based on the fair value of the investment company's underlying investments in accordance with policies established by management of each investment company, as described in each of their financial statements and offering memorandum.

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

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

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

	•	The “Market Approach” uses prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities, or a group of assets and liabilities, such as a business.
	•	The “Income Approach” converts future amounts (for example, cash flows or income and expenses) to a single current (that is, discounted) amount. When the Income Approach is used, the fair value measurement reflects current market expectations about those future amounts.

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

The methodologies and information that the Company utilizes when applying the Market Approach for performing investments ~~may be based on,~~includes, among other things:

	•	valuations of comparable public companies (“Guideline Comparable Approach”);
	•	recent sales of private and public comparable companies (“Guideline Comparable Approach”);
	•	recent acquisition prices of the company, debt securities or equity securities (“Recent Arms-length Transaction”);
	•	external valuations of the portfolio company, offers from third parties to buy the company (“Estimated Sales Proceeds Approach”);
	•	subsequent sales made by the company of its investments (“Expected Sales Proceeds Approach”); and
	•	estimating the value to potential buyers.

The methodologies and ~~public comparable companies, discounting~~information that the ~~forecasted cash flows of~~Company utilizes when applying 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 recentIncome Approach for performing investments ~~in the equity securities of the portfolio company.~~ includes:

	•	discounting the forecasted cash flows of the portfolio company or securities (“Discounted Cash Flow” or “DCF” Approach); and
	•	Black-Scholes model or simulation models or a combination thereof (Income Approach – Option Model) with respect to the valuation of warrants.

For non-performing investments, the Company may estimate the liquidation or collateral value of the portfolio company’s assets and liabilities using an expected recovery model. The Company may estimate the fair value of warrants based on a model such as the Black-Scholes model or simulation models or a combination thereof.

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

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

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

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

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

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

~~estimating the value to potential buyers.~~

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

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

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

Over-the-counter derivative contracts, such as total return swaps (see Note 5) are fair valued using models that measure the change in fair value of reference assets underlying the swaps offset against any fees payable to the swap counterparty. The fair values of the reference assets underlying the swaps are determined using similar methods as described above for debt and equity investments where the Company also invests directly in such assets.

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

~~the quarterly valuation process begins with each portfolio investment being initially valued by the Company's valuation professionals;~~

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

an independent valuation firm engaged by the Company’s board of directors prepares an independent valuation report for approximately one-third of the portfolio investments each quarter on a rotating quarterly basis on non-

fiscal year-end quarters, such that each of these investments will be valued by an independent valuation firm at least twice per annum when combined with the fiscal year-end review of all the investments by independent valuation firms.

	•	the quarterly valuation process begins with each portfolio investment being initially valued by the Company's valuation professionals;
	•	preliminary valuation conclusions are then documented and discussed with senior management; and
	•	an independent valuation firm engaged by the Company’s board of directors prepares an independent valuation report for approximately one-third of the portfolio investments each quarter on a rotating quarterly basis on non-fiscal year-end quarters, such that each of these investments will be valued by an independent valuation firm at least twice per annum when combined with the fiscal year-end review of all the investments by independent valuation firms.

In addition, all of the Company’s investments are subject to the following valuation process:

~~management reviews preliminary valuations and its own independent assessment;~~

~~the independent audit committee of the Company’s board of directors reviews the preliminary valuations of senior management and independent valuation firms; and~~

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

	•	management reviews preliminary valuations and its own independent assessment;
	•	the independent audit committee of the Company’s board of directors reviews the preliminary valuations of senior management and independent valuation firms; and
	•	the Company’s board of directors discusses valuations and determines the fair value of each investment in the Company’s portfolio in good faith based on the input of SIC Advisors, the respective independent valuation firms and the audit committee.

The Company’s investments in subordinated notes are carried at fair value, which is based on a discounted cash flow model. The discounted cash flow model models both the underlying collateral (assets) and the liabilities of the CLO capital structure. The discounted cash flow model uses a set of assumptions including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated cash flows of the assets. The discounted cash flow model distributes the asset cash flows to the liability structure based on the payment priorities and discounts them back using appropriate market discount rates based on discount rates for comparable CLOs. The assumptions are based on available market data as well as management estimates. Additional data is used to validate the results from the discounted cash flow method, such as analysis of relevant data observed in the CLO market, review of quotes, where available, recent acquisitions and observable transactions in the subordinated notes, among other factors.

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Table of Contents

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

Fair Value of Financial Instruments

The carrying amounts of certain of the Company’s financial instruments, including cash and accounts payable and accrued expenses, approximate fair value due to their short-term nature. The carrying amounts and fair values of the Company’s long-term obligations are discussed in Note 4.

U.S. Federal Income Taxes

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

The Company will be subject to a nondeductible U.S. federal excise tax of 4% on undistributed income if it does not distribute at least 98% of its ordinary income in any calendar year and 98.2% of its capital gain net income for each one-year period ending on October 31 of such calendar year. To the extent the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions for U.S. federal excise tax purposes, the Company accrues U.S. federal excise tax, if any, on estimated excess taxable income as taxable income is earned.

For the year ended December 31, 2020, the Company distributed at least 98% of its ordinary income and 98.2% of its capital gains, and as such, there was no excise tax accrual or expense recorded.

The Taxable Subsidiaries accrue income taxes payable based on the applicable corporate rates on the unrealized gains generated by the investments held by the Taxable Subsidiaries. As of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016,~~2020, the Company recorded a deferred tax liability of ~~$429,991~~$4,214,716 and ~~$244,622,~~$2,390,596, respectively, on the ~~consolidated statements~~Consolidated Statements of ~~assets~~Assets and ~~liabilities.~~Liabilities. The change in deferred tax liabilities is included as a component of net realized and unrealized gain/(loss) on investments on the ~~consolidated statements~~Consolidated Statements of ~~operations.~~

Operations.

ICTI generally differs from net investment income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. The Company may be required to recognize ICTI in certain circumstances in which it does not receive cash. For example, if the Company holds debt obligations that are treated under applicable tax rules as having original issue discount ("OID"), the Company must include in ICTI each year a portion of the ~~original issue discount~~OID that accrues over the life of the obligation, regardless of whether cash representing such income is received by the Company in the same taxable year. The Company may also have to include in ICTI other amounts that it has not yet received in cash, such as PIK interest ~~income and interest~~

income from investments that have been classified as non-accrual for financial reporting purposes. Interest income on non-accrual investments is not recognized for financial reporting purposes, but generally is recognized in ICTI.income. Because any ~~original issue discount~~OID or other amounts accrued will be included in the Company’s ICTI for the year of accrual, the Company may be required to make a distribution to its stockholders in order to satisfy the minimum distribution requirements, even though the Company will not have received and may not ever receive any corresponding cash amount. ICTI also excludes net unrealized appreciation or depreciation, as investment gains or losses are not included in taxable income until they are realized.

Although the Company files federal and state tax returns, the Company's major tax jurisdiction is the United States federal jurisdiction. The Company’s federal and state tax returns for the prior three fiscal years remain open, subject to examination by the Internal Revenue Service.

The Company accounts for income taxes in conformity with ASC Topic 740 - Income Taxes (“ASC 740”). ASC 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions deemed to meet the “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current period. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the ~~consolidated statements~~Consolidated Statements of ~~operations.~~Operations. There were no interest or penalties due to material uncertain income tax positions at ~~September~~June 30, ~~2017~~2021 and ~~2016.~~December 31, 2020.

F-24

~~The following table reflects,~~

Table of Contents

As of June 30, 2021, for U.S. federal income tax purposes, the ~~sources of~~aggregate gross unrealized appreciation and the ~~cash distributions that the Company has paid on its common stock for the nine months ended September 30, 2017~~aggregate gross unrealized depreciation are $36,055,498 and ~~2016 :~~

Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Source of Distribution
Distribution
Amount
Percentage
Distribution
Amount⁽¹⁾
Percentage
Ordinary income $ 46,082,836
100.0 % $ 53,464,883
100.0 %
Net realized gain —
—
—
—
Return of capital —
—
—
—
Distributions on a tax basis $ 46,082,836
100.0 % $ 53,464,883
100.0 %

(1) For the nine months ended September 30, 2016, if expense support payments of $16,093,129 were not made by SIC Advisors, 30% of the distributions would have been a return of capital for GAAP purposes.

$85,276,644, respectively. As of ~~September~~June 30, ~~2017,~~2021, net unrealized depreciation is $49,221,146 based on a tax basis cost of $680,567,873.

As of December 31, 2020, for federal income tax purposes, the aggregate gross unrealized appreciation and the aggregate gross unrealized depreciation ~~is $8,341,062~~are $28,388,444 and ~~$56,079,015,~~$119,104,895, respectively. As of ~~September 30, 2017,~~December 31, 2020, net unrealized depreciation is ~~$45,794,014~~$90,716,451 based on a tax basis cost of ~~$1,112,856,106.~~

$694,702,931.

Segments

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

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

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

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

The Company’s assets may, at any time, include securities and other financial instruments or obligations that are illiquid or thinly traded, making purchase or sale of such securities and financial instruments at desired prices or in desired quantities difficult.

Furthermore, the sale of any such investments may be possible only at substantial discounts, and it may be extremely difficult to value any such investments accurately.

Recent Accounting Pronouncements

In March ~~2016,~~2020, the FASB issued ASU ~~2016-08, Revenue from Contracts~~2020-04, "Reference rate reform (Topic 848)—Facilitation of the effects of reference rate reform on financial reporting." The amendments in this update provide optional expedients and exceptions for applying U.S. GAAP to certain contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform and became effective upon issuance for all entities. The Company has agreements that have LIBOR as a reference rate with ~~Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarified~~certain portfolio companies and also with our lender, including financial instruments that mature before and after the ~~implementation guidance on principal versus agent considerations. In April 2016,~~end of 2021, when certain LIBOR reference rates will be discontinued. Many of these agreements, including the ~~FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarified~~credit agreement relating to the ~~implementation guidance regarding performance obligations and licensing arrangements. The new standard will become effective~~Alpine Credit Facility, include language for choosing an alternative successor rate if LIBOR reference is no longer considered to be appropriate. With respect to other agreements, the Company ~~on January 1, 2018,~~intends to work with ~~early application permitted~~its portfolio companies and lenders 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 ~~date~~as of ~~January 1, 2017.~~March 12, 2020 through December 31, 2022 and the Company plans to apply the amendments in this update to account for contract modifications due to changes in reference rates. The Company ~~is evaluating the effect~~does not believe that ~~the above referenced guidance~~it will have a material impact on its consolidated financial statements and ~~related~~ disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. The guidance does not apply to revenue associated with financial instruments, including loans and notes that are accounted for under other U.S. GAAP. As a result, the Company does not expect the new revenue recognition guidance to have a material impact on the elements of its consolidated statements of operations, most closely associated with financial instruments, including realized gains, fees, interest and dividend income. The Company plans to adopt the revenue recognition guidance in the first quarter of 2018. The Company’s implementation efforts include the identification of revenue within the scope of the guidance, as well as the evaluation of revenue contracts and related accounting policies. While the Company has not yet identified any material changes in the timing of revenue recognition, the Company's review is ongoing, and it continues to evaluate the presentation of certain contract costs.

Note 3. Investments

The following table ~~summarizes~~shows the amortized cost and the fair value of the Company’s portfolio investments as of ~~September~~June 30, ~~2017:~~2021:

	Amortized Cost		Percentage			Fair Value		Percentage
Senior secured first lien term loans	$	391,803,346		56.5	%	$	340,020,040		53.9	%
Senior secured second lien term loans		89,818,435		13.0			88,498,230		14.0
Subordinated notes		60,457,435		8.7			54,568,511		8.6
Sierra Senior Loan Strategy JV I LLC		110,050,000		15.9			85,775,721		13.6
Equity/warrants		41,107,263		5.9			62,484,225		9.9
Total	$	693,236,479		100.0	%	$	631,346,727		100.0	%

Amortized Cost Percentage Fair Value Percentage
Senior secured first lien term loans $ 572,860,454
51.4 % $ 553,428,971
51.9 %
Senior secured second lien term loans 304,081,717
27.3
285,048,102
26.7
Senior secured first lien notes 53,951,323
4.8
52,850,766
5.0
Subordinated notes 74,393,199
6.7
71,311,459
6.7
Sierra Senior Loan Strategy JV I LLC 72,991,250
6.5
72,086,943
6.8
Warrants/Equity 36,522,102
3.3
32,335,851
3.0
Total $ 1,114,800,045
100.0 % $ 1,067,062,092
100.0 %

The following table ~~summarizes~~shows the amortized cost and the fair value of the Company’s portfolio investments as of December 31, ~~2016:~~2020:

	Amortized Cost		Percentage			Fair Value		Percentage
Senior secured first lien term loans	$	369,385,810		52.7	%	$	315,490,601		52.3	%
Senior secured first lien notes		8,473,750		1.2			8,548,755		1.4
Senior secured second lien term loans		103,081,287		14.7			93,794,917		15.5
Subordinated notes		65,561,840		9.4			50,039,500		8.3
Sierra Senior Loan Strategy JV I LLC		110,050,000		15.7			81,788,964		13.5
Equity/warrants		44,451,252		6.3			54,323,743		9.0
Total	$	701,003,939		100.0	%	$	603,986,480		100.0	%

F-25

Amortized Cost Percentage Fair Value Percentage
Senior secured first lien term loans $ 515,753,491
50.2 % $ 493,340,277
50.2 %
Senior secured second lien term loans 275,915,932
26.9
260,008,735
26.4
Senior secured first lien notes 72,767,547
7.1
71,970,598
7.3
Subordinated notes 53,041,209
5.2
55,185,590
5.6
Sierra Senior Loan Strategy JV I LLC 60,785,000
5.9
60,496,647
6.2
Warrants/Equity 48,219,259
4.7
42,142,475
4.3
Total $ 1,026,482,438
100.0 % $ 983,144,322
100.0 %

Table of Contents

The following table shows the ~~composition~~amortized cost and fair value of the Company’s portfolio investments by industry classification atas of June 30, 2021:

Industry Classification	Amortized Cost		Percentage			Fair Value		Percentage
Multi-Sector Holdings	$	169,631,708		24.5	%	$	140,344,232		22.2	%
High Tech Industries		88,071,141		12.7			88,996,742		14.1
Services: Business		67,002,170		9.7			66,688,199		10.6
Healthcare & Pharmaceuticals		59,028,667		8.5			48,320,180		7.6
Construction & Building		49,492,098		7.1			46,427,176		7.3
Consumer Goods: Durable		20,137,444		2.9			32,699,525		5.2
Aerospace & Defense		34,388,965		5.0			31,921,162		5.0
Banking, Finance, Insurance & Real Estate		18,509,706		2.7			27,403,505		4.3
Automotive		27,866,568		4.0			26,424,424		4.2
Hotel, Gaming & Leisure		36,945,037		5.3			24,765,792		3.9
Environmental Industries		12,031,568		1.7			21,568,052		3.4
Containers, Packaging & Glass		16,931,649		2.4			16,950,627		2.7
Services: Consumer		9,704,227		1.4			9,937,562		1.6
Chemicals, Plastics & Rubber		10,047,621		1.5			9,275,302		1.5
Forest Products & Paper		6,395,222		0.9			8,100,597		1.3
Media: Diversified & Production		15,412,995		2.2			7,531,034		1.2
Transportation: Cargo		6,448,180		0.9			6,451,966		1.0
Transportation: Consumer		6,853,763		1.0			5,425,489		0.9
Metals & Mining		3,545,379		0.5			3,545,421		0.6
Retail		9,793,881		1.4			2,976,677		0.5
Capital Equipment		2,459,249		0.4			2,454,024		0.4
Energy: Oil & Gas		20,813,748		3.0			1,707,715		0.3
Wholesale		1,682,536		0.3			1,389,202		0.2
Beverage & Food		42,957		0.0			42,122		0.0
Total	$	693,236,479		100.0	%	$	631,346,727		100.0	%

The following table shows the amortized cost and fair value ~~as of September 30, 2017:~~

Industry Classification Amortized Cost Percentage Fair Value Percentage
Services: Business $ 160,312,891
14.4 % $ 159,677,377
15.0 %
Multi-Sector Holdings 147,384,449
13.2 % 143,398,402
13.4 %
Healthcare & Pharmaceuticals 88,593,491
7.9 % 85,276,518
8.0 %
Aerospace & Defense 81,363,312
7.3 % 82,024,806
7.7 %
Banking, Finance, Insurance & Real Estate 74,734,639
6.7 % 74,791,174
7.0 %
Construction & Building 68,262,278
6.1 % 68,939,049
6.5 %
Hotel, Gaming & Leisure 76,768,495
6.9 % 63,094,334
5.9 %
High Tech Industries 54,783,730
4.9 % 53,978,631
5.1 %
Transportation: Cargo 38,550,182
3.5 % 38,717,742
3.6 %
Energy: Oil & Gas 36,394,905
3.3 % 35,461,384
3.3 %
Retail 34,826,591
3.1 % 29,526,830
2.8 %
Chemicals, Plastics & Rubber 28,716,215
2.6 % 28,718,889
2.7 %
Media: Advertising, Printing & Publishing 26,965,787
2.4 % 25,682,164
2.4 %
Telecommunications 22,130,786
2.0 % 21,722,937
2.0 %
Metals & Mining 21,127,331
1.9 % 21,127,331
2.0 %
Containers, Packaging & Glass 19,280,312
1.7 % 19,277,831
1.8 %
Beverage & Food 18,776,362
1.7 % 19,006,462
1.8 %
Automotive 35,479,192
3.2 % 18,884,012
1.8 %
Media: Diversified & Production 15,247,000
1.4 % 15,910,550
1.5 %
Capital Equipment 14,663,327
1.3 % 14,660,612
1.4 %
Media: Broadcasting & Subscription 16,127,683
1.4 % 13,889,508
1.3 %
Wholesale 12,487,500
1.1 % 12,422,565
1.2 %
Services: Consumer 9,497,960
0.9 % 8,631,157
0.8 %
Transportation: Consumer 7,443,960
0.7 % 7,443,960
0.7 %
Environmental Industries 2,881,667
0.3 % 2,881,667
0.3 %
Consumer Goods: Non-Durable 2,000,000
0.2 % 1,916,200
0.2 %
Total $ 1,114,800,045
100.0 % $ 1,067,062,092
100.0 %

~~The following table shows the composition~~ of the Company’s portfolio investments by industry classification ~~at amortized cost and fair value~~ as of December 31, ~~2016:~~2020:

Industry Classification	Amortized Cost			Percentage			Fair Value		Percentage
Multi-Sector Holdings	$	174,660,001			24.9	%	$	131,792,864		21.8	%
Services: Business		79,260,551			11.3			73,716,395		12.2
High Tech Industries		75,519,344			10.8			71,792,022		11.9
Healthcare & Pharmaceuticals		68,599,968			9.8			58,275,198		9.6
Consumer Goods: Durable		32,045,028			4.6			41,016,292		6.8
Construction & Building		42,928,750			6.1			38,356,358		6.4
Banking, Finance, Insurance & Real Estate		27,848,664			4.0			37,620,161		6.2
Aerospace & Defense		33,558,896			4.8			29,723,725		4.9
Hotel, Gaming & Leisure		36,326,705	��		5.2			24,013,769		4.0
Automotive		18,886,756			2.7			17,404,476		2.9
Containers, Packaging & Glass		15,206,840			2.2			15,120,424		2.5
Environmental Industries		5,041,430			0.7			10,052,691		1.7
Services: Consumer		9,700,000			1.4			9,725,000		1.6
Chemicals, Plastics & Rubber		10,060,861			1.4			9,063,498		1.5
Forest Products & Paper		6,477,887			0.9			7,770,704		1.3
Media: Diversified & Production		15,474,145			2.2			6,780,000		1.1
Transportation: Cargo		6,877,294			1.0			6,770,781		1.1
Transportation: Consumer		7,975,416			1.1			6,068,082		1.0
Metals & Mining		3,492,436			0.5			3,492,479		0.6
Energy: Oil & Gas		20,868,832			3.0			2,625,018		0.4
Wholesale		2,212,919			0.3			1,746,044		0.3
Retail		7,934,347			1.1			1,012,358		0.2
Beverage & Food		46,869			0.0			48,141		0.0
Total	$	701,003,939			100.0	%	$	603,986,480		100.0	%

Industry Classification Amortized Cost Percentage Fair Value Percentage
Services: Business $ 159,797,762
15.6 % $ 149,451,149
15.2 %
Multi-Sector Holdings 128,326,209
12.5
130,182,237
13.3
Banking, Finance, Insurance & Real Estate 72,588,294
7.1
72,938,844
7.4
Aerospace & Defense 68,415,721
6.7
70,126,640
7.1
Hotel, Gaming & Leisure 71,197,643
6.9
69,640,838
7.1
Healthcare & Pharmaceuticals 75,853,228
7.4
69,382,894
7.1
Retail 71,315,882
6.9
61,292,231
6.2
Construction & Building 59,905,702
5.8
58,267,425
5.9
Telecommunications 37,511,289
3.7
37,580,414
3.8
Energy: Oil & Gas 38,245,386
3.7
33,048,939
3.4
Transportation: Cargo 28,797,584
2.8
28,493,057
2.9
High Tech Industries 26,733,476
2.6
25,888,925
2.6
Automotive 32,217,128
3.1
24,222,630
2.5
Wholesale 22,332,170
2.2
21,660,294
2.2
Metals & Mining 20,756,842
2.0
20,518,139
2.1
Media: Advertising, Printing & Publishing 20,267,753
2.0
19,306,587
2.0
Beverage & Food 18,949,580
1.8
19,282,080
2.0
Media: Broadcasting & Subscription 18,085,575
1.8
15,830,498
1.6
Media: Diversified & Production 15,247,000
1.5
15,733,786
1.6
Chemicals, Plastics & Rubber 15,515,124
1.5
15,726,190
1.6
Capital Equipment 11,937,500
1.2
12,088,629
1.2
Transportation: Consumer 7,280,374
0.7
7,280,374
0.7
Services: Consumer 5,205,216
0.5
5,201,522
0.5
Total $ 1,026,482,438
100.0 % $ 983,144,322
100.0 %

~~See Note 5 for industry classifications of the underlying total return swap ("TRS") reference assets as of September 30, 2017 and December 31, 2016.~~

The following table shows the composition of the Company’s portfolio investments by geography classification at fair value as of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016:~~2020:

	June 30, 2021					December 31, 2020
Geography	Fair Value		Percentage			Fair Value		Percentage
United States	$	576,778,216		91.4	%	$	553,982,580		91.7	%
Cayman Islands		54,568,511		8.6			50,003,900		8.3
Total	$	631,346,727		100.0	%	$	603,986,480		100.0	%

F-26

September 30, 2017 December 31, 2016
Geography Fair Value Percentage Fair Value Percentage
United States $ 993,145,565
93.1 % $ 905,925,975
92.1 %
Canada 2,605,068
0.2
7,532,757
0.8
Cayman Islands 71,311,459
6.7
69,685,590
7.1
Total $ 1,067,062,092
100.0 % $ 983,144,322
100.0 %

Table of Contents

Transactions ~~With~~with Controlled/Affiliated Companies

During the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016,~~2020, the Company had investments in portfolio companies designated as controlled/affiliated investments under the 1940 Act. Transactions with controlled/affiliated investments were as follows:

				Purchases/			Transfers		Net change in
		Fair Value at		(Sales)			In/(Out)		unrealized
		December 31,		of			of		appreciation/			Realized		Fair Value at		Income
Name of Investment⁽²⁾	Type of Investment	2020		Investments			Investments		(depreciation)			Gain/(Loss)		June 30, 2021		Earned
1888 Industrial Services, LLC	Revolving Credit Facility	$	1,243,924	$	—		$	—	$	—		$	—	$	1,243,924	$	38,474
	Senior Secured First Lien Term Loan		431,176		(6,467	)		—		-27,460			33,927		431,176		—
	Senior Secured First Lien Term Loan		—		—			—		—			—		—		—
	Senior Secured First Lien Term Loan		—		—			—		—			—		—		—
	Membership Units		—		—			—		—			—		—		—
Access Media Holdings, LLC	Senior Secured First Lien Term Loan		—		(127,680	)		—		—			127,680		—		—
Black Angus Steakhouses, LLC	Senior Secured First Lien Term Loan		1,897,321		—			—		—			—		1,897,321		130,393
	Senior Secured First Lien Term Loan		9,060,892		—			—		11,579			—		9,072,471		—
	Senior Secured First Lien Term Loan		3,055,556		694,444			—		—			—		3,750,000		181,775
	Equity		—		—			—		—			—		—		—
Caddo Investors Holdings 1 LLC	Equity		6,366,372		—			—		431,527			—		6,797,899		—
Charming Charlie LLC	Senior Secured First Lien Term Loan		—		—			—		—			—		—		—
	Senior Secured First Lien Term Loan		—		—			—		—			—		—		—
	Senior Secured First Lien Term Loan		71,281		—			—		—			—		71,281		—
	Senior Secured First Lien Term Loan		396,225		—			—		—			—		396,225		—
	Common Stock		—		—			—		—			—		—		—
Dynamic Energy Services International LLC	Revolving Credit Facility		—		—			—		—			—		—		—
	Senior Secured First Lien Term Loan		493,470		—			—		(493,470	)		—		—		—
	Equity		—		—			—		—			—		—		—
Kemmerer Operations, LLC	Senior Secured First Lien Term Loan		2,130,353		163,694			—		—			—		2,294,047		163,761
	Senior Secured First Lien Delayed Draw Term Loan		399,366		(110,752	)		—		—			—		288,614		24,796
	Equity		962,760		—			—		—			—		962,760		—
MCM 500 East Pratt Holdings, LLC	Equity		7,350,000		—			—		(925,000	)		—		6,425,000		382,197
MCM Capital Office Park Holdings LLC	Equity		15,525,000		—			—		(606,495	)		—		14,918,505		437,698
Sierra Senior Loan Strategy JV I LLC⁽¹⁾	Equity		81,788,964		—			—		3,986,757			—		85,775,721		2,522,112
TwentyEighty, Inc.	Common Units		—		(37,764	)		—		—			37,764		—		—
Total		$	131,172,660	$	575,475		$	—	$	2,377,438		$	199,371	$	134,324,944	$	3,881,206

F-27

Name of Investment ⁽³⁾
Type of Investment Fair Value at December 31, 2016
Purchases/
(Sales)
of Investments

Transfers
In/(Out)
of Investments

Net change in
unrealized
appreciation/
(depreciation)
Realized Gain/(Loss) Fair Value at September 30, 2017 Income
Earned
AAR Intermediate Holdings, LLC Senior Secured First Lien Term Loans $ —
$ (150,935 ) $ 150,935
$ —
$ —
$ —
$ 9,015
Senior Secured First Lien Term Loans —
—
3,144,481
—
—
3,144,481
146,648
Senior Secured First Lien Term Loans —
593,511
5,254,799
1,062,892
—
6,911,202
469,183
Membership Units —
—
—
—
—
—
—
Access Media Holdings, LLC Senior Secured First Lien Term Loan —
271,946
7,026,014
—
—
7,297,960
541,307
Common Stock —
—
—
—
—
—
—
Preferred Equity Series A —
—
1,400,000
(1,400,000 ) —
—
—
Preferred Equity Series AA —
52,500
647,500
(700,000 ) —
—
—
Preferred Equity Series AAA —
317,800
(158,900 ) —
158,900
—
Capstone Nutrition Senior Secured First Lien Term Loans 16,246,819
(281,769 ) —
3,379,306
—
19,344,356
—
Common Stock —
—
—
—
—
—
—
Common Stock, Class B —
—
—
—
—
—
—
Common Stock, Class C —
—
—
—
—
—
—
MCM Capital Office Park Holdings LLC Equity 7,500,000
(467,532 ) —
—
—
7,032,468
—
Nomida LLC⁽¹⁾
Senior Secured First Lien Term Loan 8,100,000
(4,400,000 ) —
—
—
3,700,000
611,806
Equity 5,400,000
—
—
—
—
5,400,000
—
Sierra Senior Loan Strategy JV I LLC⁽²⁾
Equity 60,496,647
12,206,250
—
(615,954 ) —
72,086,943
5,512,500
TwentyEighty, Inc. Senior Secured First Lien Term Loan —
5,442,414
—
(79,390 ) —
5,363,024
350,142
Senior Secured First Lien Term Loan —
6,579,632
—
—
—
6,579,632
344,482
Senior Secured First Lien Term Loan —
3,059,173
—
15,086
—
3,074,259
183,364
Senior Secured First Lien Term Loan —
—
—
—
—
—
8,571
Equity —
—
—
—
—
—
—

Total $ 97,743,466
$ 23,222,990
$ 17,623,729
$ 1,503,040
$ —
$ 140,093,225
$ 8,177,018

Table of Contents

Name of Investment Type of Investment Fair Value at December 31, 2015
Purchases/
(Sales)
of Investments

Transfers
In/(Out)
of Investments

Net change in
unrealized
appreciation/
(depreciation)
Realized Gain/(Loss) Fair Value at September 30, 2016 Income
Earned
Nomida LLC⁽¹⁾
Senior Secured First Lien Term Loan $ 8,100,042
$ —
$ —
$ 14,700
$ —
$ 8,114,742
$ 616,500
Equity 5,400,000
—
—
—
—
5,400,000
—
Sierra Senior Loan Strategy JV I LLC⁽²⁾
Equity 34,362,191
19,950,000
—
(1,739,556 ) —
52,572,635
3,570,000
Total $ 47,862,233
$ 19,950,000
$ —
$ (1,724,856 ) $ —
$ 66,087,377
$ 4,186,500

		Fair Value			Purchases/			Transfers		Net change in
		at			(Sales)			In/(Out)		unrealized					Fair Value
		December 31,			of			of		appreciation/			Realized		at			Income
Name of Investment⁽²⁾	Type of Investment	2019			Investments			Investments		(depreciation)			Gain/(Loss)		June 30, 2020			Earned
1888 Industrial Services, LLC	Revolving Credit Facility	$	1,183,094		$	41,570		$	—	$	—		$	—	$	1,224,664		$	41,341
	Senior Secured First Lien Term Loan		3,315,574			—			—		(3,315,574	)		—		—			—
	Senior Secured First Lien Term Loan		2,113,617			—			—		(2,113,617	)		—		—			—
	Senior Secured First Lien Term Loan		416,940			—			—		(8,573	)		—		408,367			—
	Senior Secured First Lien Term Loan		79,986			2,731			—		—			—		82,717			2,731
	Senior Secured First Lien Term Loan		288,300			9,844			—		—			—		298,144			9,892
	Membership Units		—			—			—		—			—		—			—
Access Media Holdings, LLC	Senior Secured First Lien Term Loan		2,251,418			—			—		(830,428	)		—		1,420,990			—
	Common Stock		—			—			—		—			—		—			—
	Preferred Equity		—			—			—		—			—		—			—
	Preferred Equity		—			—			—		—			—		—			—
	Preferred Equity		(88,200	)		—			—		—			—		(88,200	)		—
Caddo Investors Holdings 1 LLC	Equity		5,765,253			4,882			—		284,165			—		6,054,300			—
Charming Charlie LLC	Senior Secured First Lien Term Loan		—			—			—		—			—		—			—
	Senior Secured First Lien Term Loan		—			—			—		—			—		—			—
	Senior Secured First Lien Term Loan		112,981			(12,125	)		—		(29,575	)		—		71,281			6,437
	Senior Secured First Lien Term Loan		628,025			(67,400	)		—		(164,400	)		—		396,225			35,782
	Common Stock		—			—			—		—			—		—			—
Dynamic Energy Services International LLC	Revolving Credit Facility		—			—			—							—			—
	Senior Secured First Lien Term Loan		692,431			—			—		(232,479	)		—		459,952			—
	Equity		—			—			—		—			—		—			—
Kemmerer Operations, LLC	Senior Secured First Lien Term Loan		461,035			35,625			—		—			—		496,660			35,640
	Senior Secured First Lien Delayed Draw Term Loan		1,834,227			141,733			—		—			—		1,975,960			141,792
	Equity		962,760			—			—		—			—		962,760			—
MCM 500 East Pratt Holdings, LLC	Equity		7,350,000			—			—		—			—		7,350,000			94,677
MCM Capital Office Park Holdings LLC	Equity		11,775,000			—			—		2,850,000			—		14,625,000			279,480
Sierra Senior Loan Strategy JV I LLC⁽¹⁾	Equity		68,434,389			13,625,000			—		(18,252,508	)		—		63,806,881			1,400,000
TwentyEighty, Inc.	Equity		644,597			(232,392	)		—		(255,341	)		232,392		389,256			—
Total		$	108,221,427		$	13,549,468		$	—	$	(22,068,330	)	$	232,392	$	99,934,957		$	2,047,772

(1)

~~(1)~~

Nomida, LLC ("Nomida") is a non-public real estate investment formed by the Company to purchase and develop a residential property. The Company is the sole equity shareholder of Nomida and has provided 100% of the debt financing to the entity. The Company is Nomida’s sole member responsible for Nomida’s daily operations. In addition, the Chief Financial Officer and Secretary of the Company also serves as President of Nomida. The assets of Nomida are comprised of a residential development property in the city of Chicago, IL and the proceeds of the loan from the Company; the liabilities of Nomida consist of the loan payable to the Company.

~~(2)~~

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

(2)
~~(3)~~	The par amount and additional detail are shown in the consolidated schedule of ~~investments.~~investments

F-28

Table of Contents

Purchases/(sales) of investments in controlled/~~affiliates~~affiliated investments are included in the purchases and sales presented on the ~~consolidated statements~~Consolidated Statements of ~~cash flows~~Cash Flows for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016.~~2020. Transfers in/(out) of controlled/affiliated represents the fair value for the month an investment became or was removed as a controlled/affiliates investment. Income received from controlled/affiliated investments is included in total investment income on the ~~consolidated statements~~Consolidated Statements of ~~operations~~Operations for the six months ended June 30, 2021 and 2020.

In connection with certain of the Company’s investments, the Company receives warrants that are obtained for the objective of increasing the total investment returns and are not held for hedging purposes. As of June 30, 2021 and December 31, 2020, the total fair value of warrants were $27,955 and $13,195, respectively, and were included in investments at fair value on the Consolidated Statements of Assets and Liabilities. Total realized and change in unrealized gains (losses) related to warrants for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 were $5,591 and ~~2016.~~

$14,760. Total realized and change in unrealized gains (losses) related to warrants for the three and six months ended June 30, 2020 were $0 and $(21,469). The Company receives warrants in connection with individual investments and are not subject to master netting arrangements.

In addition to the loans that the Company has provided, the Company has unfunded commitments to provide additional financings through undrawn term loans or revolving lines of credit. The details of such arrangements are disclosed in Note 10.

Sierra Senior Loan Strategy JV I LLC

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

As of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016,~~2020, Sierra JV had total capital commitments of ~~$100~~$124.6 million, with the Company providing ~~$87.5~~$110.1 million and GALIC providing ~~$12.5~~$14.5 million. ~~$83.4 million~~As of June 30, 2021 and ~~$69.5~~December 31, 2020, approximately $124.5 million was funded ~~as of September 30, 2017 and December 31, 2016,~~ relating to these commitments of which ~~$72.9~~$110.1 million ~~and $60.8 million were~~was from the ~~Company, respectively.~~Company. The Company does not have the right to withdraw any of their respective capital commitment, unless in connection with a transfer of its membership interests. The Company may transfer full membership interests as long as it is approved by all members and transferred in a transaction exempt from the registration requirements of the Securities Act ~~of 1933, as amended,~~ or applicable state securities laws.

~~On August 4, 2015,~~

Sierra JV entered into a ~~senior secured revolving credit facility the ("JV~~Senior Secured Revolving Credit Facility Agreement, as amended (the "JV Facility") ~~led by Credit Suisse, AG ("CS")~~ with commitments of $100 million subject to certain leverage and borrowing base restrictions. On December 29, 2015, the JV Facility was amended and the total commitments were increased to $135 million. On March 30, 2017, the Company amended the JV Facility previously administered by CS and facilitated the assignment of all rights and obligations of CS under the JV Facility to Deutsche Bank, AG, New York Branch ("DB") ~~and increased the total loan commitments to $240 million.~~ .

On ~~May 26, 2017 commitments to~~March 29, 2019, the JV ~~facility were increased~~Facility reinvestment period was extended from ~~$240 million~~March 30, 2019 to ~~$250 million. The~~June 28, 2019.

On June 28, 2019, the JV Facility ~~bears~~reinvestment period was further extended from June 28, 2019 to October 28, 2019.

On October 28, 2019, the JV Facility reinvestment period was further extended from October 28, 2019 to March 31, 2020 and the interest ~~at a~~rate was modified from bearing an interest rate of LIBOR (with ~~no minimum) plus~~a 0.00% floor) + 2.50% per annum to LIBOR (with a 0.00% floor) + 2.75% per annum.

On March 31, 2020, the total commitment under the JV Facility was reduced to $240.0 million from $250.0 million and the reinvestment period was extended from March 31, 2020 to April 30, 2020.

On April 30, 2020, the total commitment under the JV Facility was reduced to $200.0 million from $240.0 million, the reinvestment period was extended from April 30, 2020 to July 31, 2020, the maturity date was extended to July 31, 2023 and the interest rate was modified from bearing an interest rate of LIBOR (with a 0.00% floor) + 2.75% per annum to LIBOR (with a 0.50% floor) + 3.15% per annum.

On July 29, 2020, the total commitment under the JV Facility was reduced to $175.0 million from $200.0 million, the reinvestment period was extended from July 31, 2020 to April 30, 2021 and the maturity date was extended to April 30, 2024. Additionally, the interest rate was modified from bearing an interest rate of LIBOR (with a 0.50% floor) + 3.15% per annum to LIBOR (with a 0.50% floor) + 3.25% per annum.

The JV Facility ended its reinvestment period ~~ends~~ on ~~March 30, 2019~~April 18, 2021 and has entered its amortization period. The first scheduled amortization payment occurs on April 18, 2022 with subsequent payments required every six months until the ~~stated~~final amortization payment that is set to occur at maturity ~~date~~on April 18, 2024.

The JV Facility is ~~March 30, 2022.~~secured substantially by all of Sierra JV's assets, subject to certain exclusions set forth in the JV Facility. As of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016,~~2020, there ~~were $159.9 million~~was $112.2 and ~~$123.9~~$124.7 million outstanding under the JV Facility, respectively.

The following table shows a summary of Sierra JV's portfolio as of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016:~~2020:

	June 30, 2021			December 31, 2020
	(unaudited)
Senior secured loans⁽¹⁾	$	204,261,125		$	210,175,007
Weighted average current interest rate on senior secured loans⁽²⁾		5.95	%		6.05	%
Number of borrowers in the Sierra JV		51			52
Investments at fair value	$	195,243,830		$	196,605,878
Largest loan to a single borrower⁽¹⁾	$	10,480,144		$	10,595,716
Total of five largest loans to borrowers⁽¹⁾	$	35,749,272		$	38,163,663

September 30, 2017 December 31, 2016
Senior secured loans⁽¹⁾
$ 234,429,783
$ 187,314,127
Weighted average current interest rate on senior secured loans⁽²⁾
6.74 % 6.73 %
Number of borrowers in the Sierra JV 49
40
Investments at fair value $ 229,247,389
$ 183,657,487
Largest loan to a single borrower⁽¹⁾
$ 11,346,929
$ 10,000,000
Total of five largest loans to borrowers⁽¹⁾
$ 46,991,289
$ 39,387,481

~~_____________________________~~

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

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

F-29

Table of Contents

The following is a ~~listing~~list of the individual investments in Sierra JV's portfolio as of ~~September~~June 30, ~~2017:~~2021 (unaudited):

Company	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value(1)
4Over International, LLC	Media: Advertising, Printing & Publishing	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor) ⁽²⁾	6/7/2022	$	10,480,144	$	10,480,144	$	9,969,761
ADB Acquisition, LLC	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.25%) ⁽⁴⁾	12/18/2025		2,968,750		2,902,410		2,925,406
Brook & Whittle Holding Corp.	Containers, Packaging and Glass	Senior Secured First Lien Term Loan (LIBOR + 7.00%, 1.00% LIBOR Floor) ⁽⁴⁾	10/17/2024		4,975,000		4,975,000		4,975,000
Callaway Golf Company	Consumer Goods: Durable	Senior Secured First Lien Term Loan (LIBOR + 4.35%) ⁽²⁾	1/2/2026		1,498,158		1,479,704		1,506,099
Cambrex Corporation	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor) ⁽²⁾	12/4/2026		3,980,000		3,961,955		3,986,368
Cardenas Markets LLC	Retail	Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor) ⁽²⁾	11/29/2023		6,000,000		5,940,577		5,913,000
CHA Consulting, Inc.	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor) ⁽⁴⁾	4/10/2025		1,330,106		1,326,541		1,313,613
CHA Consulting, Inc.	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor) ⁽⁴⁾	4/10/2025		588,000		588,000		580,709
Covenant Surgical Partners, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 4.00%) ⁽²⁾⁽⁶⁾	7/1/2026		5,913,154		5,877,974		5,832,143
CT Technologies Intermediate Holdings, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor) ⁽²⁾	12/16/2025		4,987,500		4,976,425		4,996,976
Envision Healthcare Corporation	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 3.75%) ⁽²⁾	10/10/2025		1,930,563		1,889,983		1,653,913
GC EOS Buyer, Inc.	Automotive	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor) ⁽³⁾	8/1/2025		3,384,188		3,352,800		3,357,115
Glass Mountain Pipeline Holdings, LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor) ⁽⁵⁾⁽⁸⁾	12/23/2024		4,813,313		4,736,990		1,371,794
Golden West Packaging Group LLC	Forest Products & Paper	Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor) ⁽²⁾	6/20/2023		3,819,896		3,819,896		3,761,070
High Ridge Brands Co.	Consumer Goods: Non-Durable	Senior Secured First Lien Term Loan (9.25% Base Rate) ⁽⁸⁾	6/30/2022		2,266,515		1,896,732		367,669
Infogroup, Inc.	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor) ⁽⁴⁾	4/3/2023		4,787,500		4,773,362		4,512,219
Intermediate LLC	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor) ⁽⁴⁾	7/1/2026		2,701,875		2,689,434		2,650,810
Isagenix International, LLC	Wholesale	Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor) ⁽⁴⁾	6/16/2025		2,482,804		2,474,846		2,016,037
Ivanti Software, Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor) ⁽⁴⁾	12/1/2027		4,987,500		4,918,702		4,975,530

F-30

Company Industry Type of Investment Maturity Par Amount Cost
Fair Value⁽¹⁾
4 Over International, LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 6.000%, 1.000% Floor
6/7/2022 $ 11,346,928
$ 11,346,928
$ 11,346,928
AccentCare, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 5.750%, 1.000% Floor
10/1/2021 6,727,866
6,688,579
6,694,228
Acrisure, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 5.000%, 1.000% Floor
11/22/2023 497,500
496,327
502,475
Amplify Snack Brands, Inc. Beverage & Food
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 5.500%, 1.000% Floor
9/4/2023 2,717,369
2,694,347
2,672,533
APCO Holdings, Inc. Automotive
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 6.000%, 1.000% Floor
1/31/2022 4,677,702
4,576,111
4,677,704
API Technologies Corp. Aerospace & Defense
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 6.500%, 1.000% Floor
4/22/2022 5,902,500
5,812,255
5,902,500
Associated Asphalt Partners, LLC Construction & Building
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 5.250%, 1.000% Floor
4/5/2024 997,500
992,848
992,513
Avantor Performance Materials Holdings, LLC Chemicals, Plastics & Rubber
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 4.000%, 1.000% Floor
3/11/2024 2,985,000
2,978,115
2,985,000
Blount International, Inc. Capital Equipment
Senior Secured First Lien Term Loans⁽²⁾ LIBOR + 5.000%, 1.000% Floor
4/12/2023 1,980,000
1,948,912
1,980,000
Canyon Valor Companies, Inc. Media: Diversified & Production
Senior Secured First Lien Term Loans⁽²⁾ LIBOR + 4.250%, 1.000% Floor
6/16/2023 2,475,000
2,468,952
2,499,750
Cardenas Markets LLC Retail
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 5.750%, 1.000% Floor
11/29/2023 6,451,250
6,394,436
6,440,928
CD&R TZ Purchaser, Inc. Services: Consumer
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 6.000%, 1.000% Floor
7/21/2023 6,435,000
6,354,404
6,418,913
CP Opco, LLC Services: Consumer
Senior Secured First Lien Term loans⁽³⁾⁽⁵⁾ LIBOR + 4.500%, 1.000% Floor
4/1/2019 365,980
355,848
99,546
CP Opco, LLC Services: Consumer
Senior Secured First Lien Term loans⁽³⁾⁽⁵⁾ LIBOR + 6.000%, 1.000% Floor
4/1/2019 2,673,135
1,195,026
—
CP Opco, LLC Services: Consumer
Senior Secured First Lien Term loans⁽²⁾⁽⁵⁾ LIBOR + 8.000%, 1.000% Floor
4/1/2019 1,558,081
—
—
CP Opco, LLC Services: Consumer Common Stock —
—
—
—
CP Opco, LLC Services: Consumer
Senior Secured First Lien Term loans⁽²⁾⁽⁵⁾ LIBOR + 9.500%, 1.000% Floor, PIK
4/1/2019 —
—
—
CSP Technologies North America, LLC Containers, Packaging & Glass
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 5.250%, 1.000% Floor
1/31/2022 4,719,321
4,719,321
4,719,321
CT Technologies Intermediate Holdings, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 4.250%, 1.000% Floor
12/1/2021 5,218,206
5,058,140
5,218,206
Elite Comfort Solutions LLC Chemicals, Plastics & Rubber
Senior Secured First Lien Term Loans⁽³⁾ LIBOR + 6.500%, 1.000% Floor
1/15/2021 9,684,360
9,684,360
9,684,360
EVO Payments International, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 5.000%, 1.000% Floor
12/22/2023 3,482,500
3,451,297
3,517,325
Explorer Holdings, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 5.000%, 1.000% Floor
5/2/2023 407,932
404,671
409,482
GK Holdings, Inc. Services: Business
Senior Secured First Lien Term Loans⁽³⁾ LIBOR + 6.000%, 1.000% Floor
1/20/2021 3,998,461
3,982,582
3,916,493

Table of Contents

Company Industry Type of Investment Maturity Par Amount Cost
Fair Value⁽¹⁾
Global Eagle Entertainment, Inc. Telecommunications
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 7.000%, 1.000% Floor
1/6/2023 4,147,500
4,079,691
4,116,394
Golden West Packaging Group LLC Forrest Products & Paper
Senior Secured First Lien Term Loans⁽²⁾ LIBOR + 5.250%, 1.000% Floor
6/20/2023 6,708,187
6,708,187
6,708,187
Harbortouch Payments, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽²⁾ LIBOR + 4.750%, 1.000% Floor
10/13/2023 2,977,500
2,952,750
2,977,500
High Ridge Brands Co. Consumer Goods: Non-Durable
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 5.000%, 1.000% Floor
6/30/2022 3,085,937
3,047,844
2,956,637
Highline Aftermarket Acquisitions, LLC Automotive
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 4.250%, 1.000% Floor
3/18/2024 3,110,895
3,096,668
3,110,895
Imagine! Print Solutions, LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 4.750%, 1.000% Floor
6/21/2022 7,960,000
7,884,361
7,880,400
InfoGroup, Inc Services: Business
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 5.000%, 1.000% Floor
4/3/2023 4,975,000
4,928,990
4,925,250
Keystone Acquisition Corp. Healthcare & Pharmaceuticals
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 5.250%, 1.000% Floor
5/1/2024 8,000,000
7,857,693
8,000,000
KNB Holdings Corporation Consumer Goods: Durable
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 5.500%, 1.000% Floor
4/26/2024 6,500,000
6,377,785
6,516,250
LifeMiles, Ltd. Services: Consumer
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 5.500%, 1.000% Floor
8/18/2022 5,000,000
4,950,691
4,950,000
MB Aerospace ACP Holdings II Corp. Aerospace and Defense
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 5.500%, 1.000% Floor
12/15/2022 6,879,963
6,828,081
6,879,962
MHVC Acquisition Corp. Aerospace and Defense
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 5.250%, 1.000% Floor
4/29/2024 4,987,500
4,963,982
4,962,563
New Media Holdings II LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 6.250%, 1.000% Floor
7/14/2022 5,864,702
5,848,389
5,864,702
PetroChoice Holdings, Inc. Chemicals, Plastics & Rubber
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 5.000%, 1.000% Floor
8/22/2022 4,962,025
4,962,025
4,962,025
Pomeroy Group LLC Services: Business Senior Secured First Lien Term loans(4) LIBOR + 6.000%, 1.000% Floor 11/30/2021 5,131,440
5,011,161
5,101,677
PT Network, LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 6.500%, 1.000% Floor
11/30/2021 2,977,500
2,977,500
2,998,045
Quorum Health Corporation Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loans⁽²⁾ LIBOR + 6.750%, 1.000% Floor
4/29/2022 2,117,046
2,084,573
2,144,145
Rough Country, LLC Automotive
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 4.500%, 1.000% Floor
5/25/2023 4,987,500
4,940,019
4,937,625
Salient CRGT Inc. High Tech Industries
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 5.750%, 1.000% Floor
2/28/2022 4,913,690
4,826,214
4,893,053
SCS Holdings I Inc. Wholesale
Senior Secured First Lien Term Loans⁽²⁾ LIBOR + 4.250%, 1.000% Floor
10/31/2022 3,694,139
3,640,153
3,731,081
Starfish Holdco LLC High Tech Industries
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 5.000%, 1.000% Floor
8/18/2025 5,000,000
4,950,345
4,950,000
Sundial Group Holdings LLC Consumer Goods: Non-Durable
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 4.750%, 1.000% Floor
8/15/2024 10,000,000
9,853,369
9,850,000
Survey Sampling International, LLC Services: Business
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 5.000%, 1.000% Floor
12/16/2020 2,954,530
2,934,263
2,954,530

Company	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value(2)
IXS Holdings, Inc.	Automotive	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 0.75% LIBOR Floor) ⁽⁴⁾	3/5/2027		2,961,554		2,937,458		2,967,181
Keystone Acquisition Corp.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor) ⁽⁴⁾	5/1/2024		6,052,651		6,006,271		5,946,730
KNB Holdings Corporation	Consumer Goods: Durable	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor) ⁽⁴⁾	4/26/2024		4,647,025		4,609,477		4,182,322
Liaison Acquisition, LLC	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor) ⁽⁴⁾	12/20/2026		4,412,825		4,402,392		4,412,825
LifeMiles Ltd.	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor) ⁽²⁾	8/18/2022		3,776,128		3,771,452		3,731,947
Logmein, Inc.	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 3.75%, 1.00% LIBOR Floor) ⁽²⁾	5/4/2026		2,992,500		2,936,736		2,987,712
Mileage Plus Holdings, LLC	Transportation: Consumer	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor) ⁽²⁾	6/21/2027		5,098,181		5,093,886		5,301,089
NGS US Finco, LLC	Capital Equipment	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor) ⁽²⁾	10/1/2025		2,920,723		2,912,707		2,850,918
NGS US Finco, LLC	Capital Equipment	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor) ⁽²⁾	10/1/2025		2,487,500		2,443,132		2,465,113
Northern Star Industries, Inc.	Capital Equipment	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor) ⁽⁵⁾	3/28/2025		4,111,875		4,100,828		4,053,486
NorthStar Group Services, Inc.	Environmental Industries	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor) ⁽⁴⁾	11/12/2026		4,937,500		4,870,164		4,980,950
Offen, Inc.	Transportation: Cargo	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor) ⁽⁴⁾	6/22/2026		4,920,442		4,894,810		4,889,935
Patriot Rail Company LLC	Transportation: Cargo	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor) ⁽⁴⁾	10/19/2026		1,728,125		1,701,902		1,736,766
PetroChoice Holdings, Inc.	Chemicals, Plastics and Rubber	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor) ⁽²⁾	8/19/2022		6,716,101		6,705,709		6,409,847
Plaskolite PPC Intermediate II LLC	Chemicals, Plastics and Rubber	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor) ⁽⁴⁾	12/15/2025		3,168,933		3,132,749		3,180,341
Port Townsend Holdings Company, Inc.	Forest Products & Paper	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor) ⁽²⁾⁽⁶⁾	4/3/2024		3,302,122		3,288,523		2,977,523
PT Network, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor, 2.00% PIK) ⁽⁵⁾⁽⁹⁾	11/30/2023		4,520,632		4,378,888		4,472,261
PT Network, LLC	Healthcare & Pharmaceuticals	Class C Common Stock ⁽⁷⁾			1		—		—
PVHC Holding Corp	Containers, Packaging and Glass	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor) ⁽⁴⁾	8/2/2024		1,937,485		1,932,431		1,875,873
Quartz Holding Company	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor) ⁽²⁾	4/2/2026		944,244		942,954		938,767
RB Media, Inc.	Media: Diversified & Production	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor) ⁽²⁾	8/29/2025		5,632,559		5,601,188		5,632,559
Resolute Investment Managers, Inc.	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 8.00%, 1.00% LIBOR Floor) ⁽⁴⁾	4/30/2025		2,000,000		1,991,416		2,020,000

F-31

Company Industry Type of Investment Maturity Par Amount Cost
Fair Value⁽¹⁾
The Garretson Resolution Group, Inc. Services: Business
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 6.500%, 1.000% Floor
5/24/2021 4,718,750
4,718,750
4,748,478
TouchTunes Interactive Networks, Inc. Media: Diversified & Production
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 4.750%, 1.000% Floor
5/28/2021 4,974,554
4,974,554
5,005,894
TrialCard Incorporated Services: Consumer
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 5.000%, 1.000% Floor
10/26/2021 6,600,149
6,546,431
6,600,149
Valence Surface Technologies, Inc. Aerospace and Defense
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 5.500%, 1.000% Floor
6/13/2019 4,359,300
4,343,457
4,304,373
VCVH Holding Corp. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loan⁽³⁾ LIBOR + 5.000%, 1.000% Floor
6/1/2023 5,925,000
5,876,195
5,916,705
VIP Cinema Holdings, Inc. Consumer Goods: Durable
Senior Secured First Lien Term loans⁽³⁾ LIBOR + 6.000%, 1.000% Floor
3/1/2023 728,165
724,860
735,446
Z Gallerie, LLC Retail
Senior Secured First Lien Term loans⁽²⁾ LIBOR + 6.500%, 1.000% Floor
10/8/2020 4,887,218
4,887,220
4,887,218
Total $ 234,429,783
$ 229,379,660
$ 229,247,389

Table of Contents

~~___________________________~~

Company	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value(2)
Salient CRGT Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 6.50%, 1.00% LIBOR Floor) ⁽²⁾	2/28/2022		4,096,726		4,085,732		4,055,759
Sierra Enterprises, LLC	Beverage & Food	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor) ⁽²⁾	11/11/2024		3,849,366		3,843,407		3,801,249
Simplified Logistics, LLC	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.50%, 1.00% LIBOR Floor) ⁽⁴⁾	2/27/2022		3,430,000		3,379,732		3,406,333
Skillsoft Corporation	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.50%, 1.00% LIBOR Floor) ⁽⁴⁾	12/27/2024		1,050,246		1,050,246		1,050,246
Syniverse Holdings, Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor) ⁽²⁾	3/9/2023		2,890,354		2,880,528		2,860,872
TEAM Services Group	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor) ⁽⁵⁾	12/20/2027		4,987,500		4,849,060		4,962,563
The Octave Music Group, Inc.	Media: Diversified & Production	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor, 0.75% PIK) ⁽⁴⁾⁽⁹⁾	5/29/2025		5,793,103		5,749,807		5,648,276
Thermacell Repellents	Consumer Goods: Durable	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor) ⁽³⁾	12/4/2026		4,988,525		4,942,148		4,938,640
Veregy Consolidated	Environmental Industries	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor) ⁽⁴⁾	11/3/2027		3,980,000		3,871,557		3,984,378
Vision Solutions, Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 0.75% LIBOR Floor) ⁽²⁾	4/24/2028		5,750,000		5,721,816		5,722,975
Wawona Delaware Holdings, LLC	Beverage & Food	Senior Secured First Lien Term Loan (LIBOR + 4.75%) ⁽⁴⁾	9/11/2026		860,362		853,952		804,438
Wok Holdings Inc.	Hotels, Gaming & Leisure	Senior Secured First Lien Term Loan (LIBOR + 6.25%) ⁽²⁾	3/1/2026		6,500,375		6,463,826		6,406,770
Wrench Group LLC	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor) ⁽⁴⁾	4/30/2026		2,920,495		2,901,290		2,921,956
Total				$	204,261,125	$	202,309,650	$	195,243,830


~~(1)~~	Represents the fair value in accordance with ASC 820 as determined by the board of managers of Sierra JV. The approval of the fair value of the portfolio investments held by Sierra JV is not included in the valuation process of the Company's board of directors described elsewhere herein.


~~(2)~~	The interest rate on these loans is subject to a base rate plus 1 Month (“1M”) LIBOR, which at September 30, 2017 was 1.23%. As the interest rate is subject to a minimum LIBOR floor, which was greater than the 1M LIBOR rate at September 30, 2017, the prevailing rate in effect at September 30, 2017 was the base rate plus the LIBOR floor.


~~(3)~~	The interest rate on these loans is subject to a base rate plus 3 Month (“3M”) LIBOR, which at September 30, 2017 was 1.33%. As the interest rate is subject to a minimum LIBOR floor, which was greater than the 3M LIBOR rate at September 30, 2017, the prevailing rate in effect at September 30, 2017 was the base rate plus the LIBOR floor.


~~(4)~~	The interest rate on these loans is subject to a base rate plus 6 Month (“6M”) LIBOR, which at September 30, 2017 was 1.51%. As the interest rate is subject to a minimum LIBOR floor, which was greater than the 6M LIBOR rate at September 30, 2017, the prevailing rate in effect at September 30, 2017 was the base rate plus the LIBOR floor.


~~(5)~~	~~The investment was on non-accrual status as of September 30, 2017.~~

(1) All securities are valued using significant unobservable inputs, which are categorized as Level 3 assets under the definition of ASC 820 fair value hierarchy.

(2) The interest rate on these loans is subject to a base rate plus 1 Month ("1M") LIBOR, which at June 30, 2021 was 0.10%. As the interest rate is subject to a minimum LIBOR floor, the prevailing rate in effect at June 30, 2021 was the Base rate plus the LIBOR floor or 1M LIBOR.

(3) The interest rate on these loans is subject to a base rate plus 2 Month ("2M") LIBOR, which at June 30, 2021 was 0.13%. As the interest rate is subject to a minimum LIBOR floor, the prevailing rate in effect at June 30, 2021 was the Base rate plus the LIBOR floor or 2M LIBOR.

(4) The interest rate on these loans is subject to a base rate plus 1 Month ("3M") LIBOR, which at June 30, 2021 was 0.15%. As the interest rate is subject to a minimum LIBOR floor, the prevailing rate in effect at June 30, 2021 was the Base rate plus the LIBOR floor or 3M LIBOR.

(5) The interest rate on these loans is subject to a base rate plus 6 Month ("6M") LIBOR, which at June 30, 2021 was 0.16%. As the interest rate is subject to a minimum LIBOR floor, the prevailing rate in effect at June 30, 2021 was the Base rate plus the LIBOR floor or 6M LIBOR.

(6) Includes an analysis of the value of any unfunded loan commitments.

(7) Security is non-income producing.

(8) The investment was on non-accrual status as of June 30, 2021.

(9) Par amount includes accumulated paid-in-kind ("PIK") interest and is net of repayments.

F-32

Table of Contents

The following is a ~~listing~~list of the individual investments in Sierra JV's portfolio as of December 31, ~~2016:~~2020:

Company	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value(1)
4Over International, LLC	Media: Advertising, Printing & Publishing	Senior Secured First Lien Term Loan (LIBOR + 6.00%)⁽²⁾	6/7/2022	$	10,595,716	$	10,595,716	$	10,595,716
ADB Companies	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.25%, 1.00% LIBOR Floor)⁽⁴⁾⁽⁶⁾	12/18/2025		2,500,000		2,425,370		2,425,000
Brook & Whittle Holding	Containers, Packaging & Glass	Senior Secured First Lien Term Loan (LIBOR + 7.00%, 1.00% LIBOR Floor)⁽⁴⁾	10/17/2024		5,000,000		5,000,000		5,000,000
Callaway Golf Company	Consumer Goods: Durable	Senior Secured First Lien Term Loan (LIBOR + 4.35%)⁽²⁾	1/2/2026		1,506,345		1,485,640		1,508,303
Cambrex Corporation	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽²⁾	12/4/2026		4,000,000		3,980,210		3,980,000
Cardenas Markets LLC	Retail	Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor)⁽²⁾	11/29/2023		7,847,596		7,723,410		7,847,596
CHA Consulting, Inc.	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽⁴⁾	4/10/2025		1,336,961		1,332,898		1,297,788
CHA Consulting, Inc.	Construction & Building	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽⁴⁾	4/10/2025		591,000		591,000		573,684
Covenant Surgical Partners, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 4.00%)⁽²⁾⁽⁶⁾	7/1/2026		4,937,812		4,898,946		4,741,270
CT Technologies Intermediate Holdings, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽²⁾	12/16/2025		5,000,000		4,975,931		4,975,000
Envision Healthcare Corporation	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 3.75%)⁽²⁾	10/10/2025		1,935,500		1,889,054		1,608,981
GC EOS Buyer, Inc.	Automotive	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽³⁾	8/1/2025		3,401,588		3,366,203		3,282,532
GK Holdings, Inc.	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽⁴⁾⁽⁸⁾	1/20/2021		3,864,837		3,864,580		3,401,056

F-33

Table of Contents

Company Industry Type of Investment Maturity Par Amount Cost
Fair Value⁽¹⁾
CP OpCo, LLC Services: Consumer
Senior Secured First Lien Term loans⁽⁴⁾⁽⁵⁾ LIBOR + 4.500%, 1.000% Floor
3/31/2019
350,415
350,415
350,415
CP OpCo, LLC Services: Consumer
Senior Secured First Lien Term loans⁽⁴⁾⁽⁵⁾ LIBOR + 6.000%, 1.000% Floor
3/31/2019
2,478,388
1,195,026
1,239,194
CP OpCo, LLC Services: Consumer
Senior Secured First Lien Term loans⁽⁴⁾⁽⁵⁾ LIBOR + 6.000%, 1.000% Floor
3/31/2019
1,558,081
—
—
CP OpCo, LLC Services: Consumer Common Units —
—
—
—
CRGT Inc. High Tech Industries
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 6.500%, 1.000% Floor
12/19/2020
4,068,160
4,060,486
4,068,160
Elite Comfort Solutions LLC Chemicals, Plastics & Rubber
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 6.500%, 1.000% Floor
1/15/2021
10,000,000
10,000,000
10,100,000
Explorer Holdings, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 5.000%, 1.000% Floor
5/2/2023
1,243,750
1,232,468
1,252,208
GK Holdings, Inc. Services: Business
Senior Secured First Lien Term loan⁽⁴⁾ LIBOR + 5.500%, 1.000% Floor
1/20/2021
4,029,298
4,009,681
4,109,884
GTCR Valor Companies, Inc. Media: Diversified & Production
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 6.000%, 1.000% Floor
6/16/2023
8,955,000
8,621,284
8,843,063
Harbortouch Payments, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 4.750%, 1.000% Floor
10/31/2023
3,000,000
2,971,068
2,970,000
High Ridge Brands Co. Consumer Goods: Non-Durable
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 5.250%, 1.000% Floor
6/30/2022
3,109,375
3,064,948
3,062,734
HNC Holdings, Inc. Construction & Building
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 4.500%, 1.000% Floor
10/5/2023
165,000
164,199
166,650
Imagine! Print Solutions, LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 6.000%, 1.000% Floor
3/30/2022
5,961,841
5,913,053
6,021,459
Keurig Green Mountain, Inc. Beverage & Food
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 5.500%, 1.000% Floor
3/3/2023
3,100,783
3,063,634
3,100,783
Keystone Peer Review Organization Holdings, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term loans⁽⁴⁾ ABR + 4.00%, 3.75% ABR Floor
12/28/2022
6,000,000
6,000,000
5,940,000
Kraton Polymers LLC Chemicals, Plastics & Rubber
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 5.000%, 1.000% Floor
1/6/2022
5,000,000
4,828,278
5,050,000
MB Aerospace ACP Holdings II Corp. Aerospace and Defense
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 5.500%, 1.000% Floor
12/15/2022
6,932,481
6,872,697
6,932,481
MWI Holdings, Inc. Capital Equipment
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 5.500%, 1.000% Floor
6/29/2020
3,980,000
3,944,879
3,970,050
New Media Holdings II LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 6.250%, 1.000% Floor
6/4/2020
5,909,552
5,888,526
5,909,552
O2 Partners, LLC Consumer Goods: Non-Durable
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 5.000%, 1.000% Floor
10/7/2022
6,483,750
6,421,171
6,418,913
Pomeroy Group LLC Services: Business
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 6.000%, 1.000% Floor
11/30/2021
5,170,611
5,027,692
5,015,493
PT Network, LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 6.500%, 1.000% Floor
11/30/2021
3,000,000
3,000,000
3,000,000
Quorum Health Corporation Healthcare & Pharmaceuticals
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 5.750%, 1.000% Floor
4/29/2022
4,440,779
4,361,538
4,340,862
SCS Holdings I Inc. Wholesale
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 4.250%, 1.000% Floor
10/30/2022
3,933,849
3,867,902
3,924,014

				Par
Company	Industry	Type of Investment	Maturity	Amount		Cost		Fair Value(1)
Glass Mountain Pipeline Holdings, LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽⁵⁾⁽⁸⁾	12/23/2024		4,838,188		4,827,833		2,431,189
Golden West Packaging Group LLC	Forest Products & Paper	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽²⁾	6/20/2023		4,058,560		4,058,560		4,054,502
High Ridge Brands Co.	Consumer Goods: Non-Durable	Senior Secured First Lien Term Loan (9.25% Base Rate)⁽⁸⁾	6/30/2022		2,266,515		1,893,812		367,669
Infogroup, Inc.	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽⁴⁾	4/3/2023		4,812,500		4,794,282		4,484,769
Intermediate LLC	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 3.75%)⁽⁴⁾	7/1/2026		2,715,625		2,701,881		2,557,304
Isagenix International, LLC	Wholesale	Senior Secured First Lien Term Loan (LIBOR + 5.75%, 1.00% LIBOR Floor)⁽⁴⁾	6/16/2025		2,578,687		2,569,382		1,420,599
Ivanti Software, Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽⁴⁾	12/1/2027		5,000,000		4,925,706		4,982,500
IXS Holdings, Inc.	Automotive	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽⁴⁾	3/5/2027		2,976,933		2,950,597		2,979,016
Keystone Acquisition Corp.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽⁴⁾	5/1/2024		6,084,094		6,029,328		5,506,105
KNB Holdings Corporation	Consumer Goods: Durable	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽⁴⁾	4/26/2024		4,711,121		4,666,373		3,574,799
Liasion Acquisition, LLC	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽⁴⁾	12/20/2026		6,435,000		6,421,268		6,435,000
LifeMiles Ltd.	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽²⁾	8/18/2022		4,078,218		4,070,961		3,843,721
Logmein	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 3.75%)⁽²⁾	5/4/2026		3,000,000		2,941,452		2,985,900
Mileage Plus	Transportation: Consumer	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽²⁾	6/21/2027		5,098,181		5,093,806		5,307,207
NGS US Finco, LLC	Capital Equipment	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽²⁾	10/1/2025		2,935,723		2,926,468		2,847,651
NGS US Finco, LLC	Capital Equipment	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽²⁾	10/1/2025		2,500,000		2,451,295		2,450,000
Northern Star Industries, Inc.	Capital Equipment	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽⁵⁾	3/28/2025		4,133,125		4,120,550		3,797,102
NorthStar Group Services, Inc.	Environmental Industries	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor)⁽⁴⁾	11/12/2026		5,000,000		4,925,521		4,925,500
Nuvei Technologies Corp.	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 0.75% LIBOR Floor)⁽²⁾	9/29/2025		3,000,000		3,000,000		3,003,900
Offen, Inc.	Transportation: Cargo	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽⁴⁾	6/22/2026		4,944,911		4,916,534		4,772,829
Patriot Rail Company LLC	Transportation: Cargo	Senior Secured First Lien Term Loan (LIBOR + 5.25%)⁽⁴⁾	10/19/2026		1,736,875		1,708,056		1,739,133
Peraton Corp.	Aerospace and Defense	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor)⁽²⁾	4/29/2024		3,362,879		3,354,861		3,358,843
PetroChoice Holdings, Inc.	Chemicals, Plastics and Rubber	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽²⁾	8/19/2022		6,751,727		6,739,538		6,426,969

F-34

Company Industry Type of Investment Maturity Par Amount Cost
Fair Value⁽¹⁾
Southwest Dealer Services, Inc. Automotive
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 6.000%, 1.000% Floor
3/16/2020
4,620,675
4,620,675
4,615,315
Sundial Group Holdings LLC Consumer Goods: Non-Durable
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 6.250%, 1.000% Floor
10/19/2021
5,775,000
5,682,389
5,775,000
Survey Sampling International, LLC Services: Business
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 6.000%, 1.000% Floor
12/16/2020
2,977,265
2,952,089
2,996,349
TaxAct, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 6.000%, 1.000% Floor
1/3/2023
3,009,259
2,938,091
3,009,259
The Garretson Resolution Group, Inc. Services: Business
Senior Secured First Lien Term loans⁽⁴⁾LIBOR + 6.500%, 1.000% Floor
5/22/2021
4,843,750
4,843,750
4,862,931
TrialCard Incorporated Services: Consumer
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 5.250%, 1.000% Floor
10/26/2021
7,000,000
6,932,567
7,000,000
Valence Surface Technologies, Inc. Aerospace and Defense
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 5.500%, 1.000% Floor
6/13/2019
3,688,249
3,664,493
3,571,737
VCVH Holding Corp. Healthcare & Pharmaceuticals
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 5.000%, 1.000% Floor
6/1/2023
5,970,000
5,914,339
5,910,300
Victory Capital Operating, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 7.500%, 1.000% Floor
10/29/2021
1,621,005
1,598,430
1,637,215
Western Digital Corporation High Tech Industries
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 3.750%, 0.750% Floor
4/29/2023
3,781,000
3,707,843
3,818,810
Z Gallerie, LLC Retail
Senior Secured First Lien Term loans⁽⁴⁾ LIBOR + 6.500%, 1.000% Floor
10/8/2020
4,924,812
4,924,812
4,924,812
Total $ 187,314,127
$ 182,356,648
$ 183,657,487

Table of Contents

~~___________________________~~

				Par
Company	Industry	Type of Investment	Maturity	Amount		Cost		Fair Value(1)
Plaskolite PPC Intermediate II LLC	Chemicals, Plastics and Rubber	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽⁴⁾	12/15/2025		3,185,000		3,143,257		3,171,305
Port Townsend Holdings Company, Inc.	Forest Products & Paper	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽²⁾⁽⁶⁾	4/3/2024		2,937,918		2,921,835		2,630,140
PT Network, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan (LIBOR + 5.50%, 1.00% LIBOR Floor, 2.00% PIK)⁽⁵⁾⁽⁹⁾	11/30/2023		4,497,071		4,322,519		4,137,305
PT Network, LLC	Healthcare & Pharmaceuticals	Class C Common Stock⁽⁷⁾			1		-		-
PVHC Holding Corp	Containers, Packaging and Glass	Senior Secured First Lien Term Loan (LIBOR + 4.75%, 1.00% LIBOR Floor)⁽⁴⁾	8/2/2024		1,947,447		1,941,553		1,858,254
Quartz Holding Company	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 4.00%)⁽²⁾	4/2/2026		949,061		948,258		926,569
RB Media, Inc.	Media: Diversified & Production	Senior Secured First Lien Term Loan (LIBOR + 4.25%, 1.00% LIBOR Floor)⁽²⁾	45898		5,632,559		5,597,474		5,592,568
Resolute	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Term Loan (LIBOR + 8.00%, 1.00% LIBOR Floor)⁽⁴⁾	4/30/2025		2,000,000		1,990,307		1,981,200
Salient CRGT Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 6.50%, 1.00% LIBOR Floor)⁽²⁾	2/28/2022		4,159,226		4,139,751		3,987,866
Sierra Enterprises, LLC	Beverage & Food	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor)⁽²⁾	11/11/2024		3,869,259		3,862,349		3,637,104
Simplified Logistics, LLC	Services: Business	Senior Secured First Lien Term Loan (LIBOR + 6.50%, 1.00% LIBOR Floor)⁽⁴⁾	2/27/2022		3,438,750		3,381,255		3,386,137
Syniverse Holdings, Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽²⁾	3/9/2023		2,897,803		2,885,063		2,621,933
TEAM Services	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 5.00%, 1.00% LIBOR Floor)⁽⁵⁾	12/20/2027		5,000,000		4,850,587		4,825,000
The Octave Music Group, Inc.	Media: Diversified & Production	Senior Secured First Lien Term Loan (LIBOR + 5.25%, 1.00% LIBOR Floor, 0.75% PIK)⁽⁴⁾⁽⁹⁾	5/29/2025		5,844,828		5,795,611		5,085,000
Veregy	Transportation: Cargo	Senior Secured First Lien Term Loan (LIBOR + 6.00%, 1.00% LIBOR Floor)⁽⁴⁾	11/3/2027		4,000,000		3,882,494		3,952,400
Vero Parent, Inc.	High Tech Industries	Senior Secured First Lien Term Loan (LIBOR + 4.50%, 1.00% LIBOR Floor)⁽²⁾	8/16/2024		3,866,037		3,848,371		3,850,960
Wawona Delaware Holdings, LLC	Beverage & Food	Senior Secured First Lien Term Loan (LIBOR + 4.75%)⁽⁴⁾	9/11/2026		942,963		935,269		919,389
Wok Holdings Inc.	Retail	Senior Secured First Lien Term Loan (LIBOR + 6.25%)⁽²⁾	3/1/2026		6,533,625		6,492,517		5,686,867
Wrench Group LLC	Services: Consumer	Senior Secured First Lien Term Loan (LIBOR + 4.00%, 1.00% LIBOR Floor)⁽⁴⁾	4/30/2026		2,937,242		2,915,853		2,866,748
Total				$	210,175,007	$	208,071,345	$	196,605,878


~~(1)~~	Represents the fair value in accordance with ASC 820 as determined by the board of managers of Sierra JV. The approval of the fair value of the portfolio investments held by Sierra JV is not included in the valuation process of the Board of Directors of the Company described elsewhere herein.


~~(2)~~	The interest rate on these loans is subject to a base rate plus 1 Month (“1M”) LIBOR, which at December 31, 2016 was 0.77%. As the interest rate is subject to a minimum LIBOR floor, which was greater than the 1M LIBOR rate at December 31, 2016, the prevailing rate in effect at December 31, 2016 was the base rate plus the LIBOR floor.


~~(3)~~	The interest rate on a portion of these loans is subject to a base rate plus Alternate Base Rate ("ABR"). As the interest rate is subject to a minimum ABR Floor which was greater than the ABR rate at December 31, 2016, the prevailing rate in effect at December 31, 2016 was the base rate plus the ABR Floor.


~~(4)~~	The interest rate on these loans is subject to a base rate plus 3 Month (“3M”) LIBOR, which at December 31, 2016 was 1.00%. As the interest rate is subject to a minimum LIBOR floor, which was greater than the 3M LIBOR rate at December 31, 2016, the prevailing rate in effect at December 31, 2016 was the base rate plus the LIBOR floor.


~~(5)~~	~~The investment was on non-accrual status as of December 31, 2016.~~

F-35

Table of Contents

(1) All securities are valued using significant unobservable inputs, which are categorized as Level 3 assets under the definition of ASC 820 fair value hierarchy.

(2) The interest rate on these loans is subject to a base rate plus 1 Month ("1M") LIBOR, which at December 31, 2020 was 0.14%. As the interest rate is subject to a minimum LIBOR floor, the prevailing rate in effect at December 31, 2020 was the Base rate plus the LIBOR floor or 1M LIBOR.

(3) The interest rate on these loans is subject to a base rate plus 2 Month ("2M") LIBOR, which at December 31, 2020 was 0.19%. As the interest rate is subject to a minimum LIBOR floor, the prevailing rate in effect at December 31, 2020 was the Base rate plus the LIBOR floor or 2M LIBOR.

(4) The interest rate on these loans is subject to a base rate plus 1 Month ("3M") LIBOR, which at December 31, 2020 was 0.24%. As the interest rate is subject to a minimum LIBOR floor, the prevailing rate in effect at December 31, 2020 was the Base rate plus the LIBOR floor or 3M LIBOR.

(5) The interest rate on these loans is subject to a base rate plus 6 Month ("6M") LIBOR, which at December 31, 2020 was 0.34%. As the interest rate is subject to a minimum LIBOR floor, the prevailing rate in effect at December 31, 2020 was the Base rate plus the LIBOR floor or 6M LIBOR.

(6) Includes an analysis of the value of any unfunded loan commitments.

(7) Security is non-income producing.

(8) The investment was on non-accrual status as of December 31, 2020.

(9) Par amount includes accumulated paid-in-kind ("PIK") interest and is net of repayments.

Below is certain summarized financial information for the Sierra JV as of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016~~2020 and for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016.~~2020.

	June 30, 2021		December 31, 2020
	(unaudited)
Selected Consolidated Statement of Assets and Liabilities Information:
Investments in loans at fair value (cost: of $202,309,650 and $208,071,345, respectively)	$	195,243,830	$	196,605,878
Cash and cash equivalents		10,982,299		17,130,001
Other assets		893,786		1,173,707
Total assets	$	207,119,915	$	214,909,586

Senior credit facility payable (net of deferred financing costs of $2,132,491 and $2,639,540, respectively)		110,020,329		122,063,405
Other liabilities		326,466		526,233
Interest payable		390,621		432,351
Total liabilities		110,737,416		123,021,989
Members’ capital		96,382,499		91,887,597
Total liabilities and members' capital	$	207,119,915	$	214,909,586

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Selected Consolidated Statement of Operations Information:
Total investment income	$	3,205,125		$	3,681,476		$	6,651,007		$	8,134,188
Total expenses		(1,810,084	)		(2,547,948	)		(3,812,394	)		(5,558,944	)
Net change in unrealized appreciation/(depreciation) of investments		602,303			15,919,611			4,399,648			(12,297,864	)
Net realized gain/(loss) on investments		60,606			(10,758,378	)		90,163			(10,750,864	)
Net income/(loss)	$	2,057,950		$	6,294,761		$	7,328,424		$	(20,473,484	)

In accordance with Rules 3-09 and 4-08(g) of Regulation S-X, the Company must determine if any of its portfolio companies is considered a “significant subsidiary.” Pursuant to the definition of “significant subsidiary” applicable to investment companies set forth in Rule 1-02(w) of Regulation S-X, a portfolio company will meet the definition of “significant subsidiary” if either the investment test or the income test is triggered. Rule 3-09 of Regulation S-X requires the Company to include separate audited financial statements of any unconsolidated majority-owned subsidiary (portfolio company in which the Company owns greater than 50% of the unconsolidated subsidiary) in the Company's annual report on Form 10-K if one of the following conditions are met: (i) if the portfolio investment’s fair value exceeds 20% of the Company’s total investments fair value (the investment test); or (ii) either (A) if the income from the portfolio investment exceeds 80% of the Company’s absolute value of the change in net assets from operations of the Company and its subsidiaries (the income test) or (B) if the income from the portfolio investment exceeds 20% of the Company’s absolute value of the change in net assets from operations of the Company and its subsidiaries and have a fair value exceeding 5% of the Company’s total investment fair value (the alternate income test). If the Company has an unconsolidated majority-owned subsidiary and does not satisfy any Rule 3-09 significant subsidiary conditions during a quarter end, the Company must include summarized income statement within the notes to the quarterly financial statements.

Rule 4-08(g) of Regulation S-X requires the Company to include summarized financial statements of any unconsolidated controlled subsidiary (portfolio company in which the Company owns greater than 25% of the voting securities of the unconsolidated subsidiary or otherwise controls the subsidiary) in the Company's annual report on Form 10-K if one of the following conditions are met: (i) if the portfolio investment’s fair value exceeds 10% of the Company’s total investments fair value (the investment test); or (ii) either (A) if the income from the portfolio investment exceeds 80% of the Company’s absolute value of the change in net assets from operations of the Company and its subsidiaries (the income test) or (B) if the income from the portfolio investment income exceeds 10% of the Company’s absolute value of the change in net assets from operations of the Company and its subsidiaries and have a fair value exceeding 5% of the Company’s total investment fair value (the alternate income test).

F-36

September 30, 2017 December 31, 2016
Selected Consolidated Statement of Assets and Liabilities Information:
Investments in loans at fair value (cost: $229,379,660 and $182,356,648, respectively) $ 229,247,389
$ 183,657,487
Cash and cash equivalents 11,226,260
8,222,344
Other assets 794,688
700,901
Total assets $ 241,268,337
$ 192,580,732

Senior credit facility payable (net of deferred financing costs of $2,186,875 and $1,286,453, respectively) 157,763,125
122,624,547
Other liabilities 565,367
442,541
Interest payable 456,105
369,942
Total liabilities $ 158,784,597
$ 123,437,030
Members’ capital 82,483,740
69,143,702
Total liabilities and members' capital $ 241,268,337
$ 192,580,732

Table of Contents

After performing the investment and income analysis for the six months ended June 30, 2021, excluding Sierra JV, the Company determined that no portfolio company would be deemed to be a significant subsidiary pursuant to Rules 3-09 and 4-08(g) of Regulation S-X.

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
Selected Consolidated Statement of Operations Information:
Total investment income $ 4,257,065
$ 2,770,260
$ 11,616,536
$ 6,993,705
Total expenses (2,149,027 ) (1,390,816 ) (5,601,906 ) (3,479,173 )
Net change in unrealized appreciation/(depreciation) of investments (29,971 ) 938,125
(1,332,377 ) 938,362
Net realized gain/(loss) of investments 516,140
(2,498,871 ) 1,108,517
(2,406,857 )
Net income/(loss) $ 2,594,207
$ (181,302 ) $ 5,790,770
$ 2,046,037

Note 4. Fair Value Measurements

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

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

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

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

	•	Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities at the measurement date.
	•	Level 2 — Valuations based on inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable at the measurement date. This category includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in non-active markets including actionable bids from third parties for privately held assets or liabilities, and observable inputs other than quoted prices such as yield curves and forward currency rates that are entered directly into valuation models to determine the value of derivatives or other assets or liabilities.
	•	Level 3 — Valuations based on inputs that are unobservable and where there is little, if any, market activity at the measurement date. The inputs for the determination of fair value may require significant management judgment or estimation and is based upon management’s assessment of the assumptions that market participants would use in pricing the assets or liabilities. These investments include debt and equity investments in private companies or assets valued using the Market or Income Approach and may involve pricing models whose inputs require significant judgment or estimation because of the absence of any meaningful current market data for identical or similar investments. The inputs in these valuations may include, but are not limited to, capitalization and discount rates, beta and Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") multiples. The information may also include pricing information or broker quotes which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence.

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

The following table presents the fair value measurements of the Company’s total investments, by major class according to the fair value hierarchy, as of ~~September~~June 30, ~~2017:~~2021:

Type of Investment	Level 1		Level 2		Level 3		Total
Asset
Senior secured first lien term loans	$	—	$	—	$	340,020,040	$	340,020,040
Senior secured second lien term loans		—		—		88,498,230		88,498,230
Subordinated notes		—		—		54,568,511		54,568,511
Equity/warrants		—		—		55,686,326		55,686,326
Total	$	—	$	—	$	538,773,107		538,773,107
Investments measured at net asset value⁽¹⁾								92,573,620
Total Investments, at fair value							$	631,346,727

Type of Investment ⁽¹⁾
Level 1 Level 2 Level 3 Total
Asset
Senior secured first lien term loans $ —
$ 4,930,200
$ 548,498,771
$ 553,428,971
Senior secured first lien notes —
11,854,163
40,996,603
52,850,766
Senior secured second lien term loans —
—
285,048,102
285,048,102
Subordinated notes —
—
71,311,459
71,311,459
Warrants/equity 949,331
—
31,386,520
32,335,851
Money market fund 18,674,728
—
—
18,674,728
Total $ 19,624,059
$ 16,784,363
$ 977,241,455
$ 1,013,649,877
Sierra Senior Loan Strategy JV I LLC $ 72,086,943
Total Investments, at fair value $ 1,085,736,820

~~________________________________~~

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

~~the table are intended to permit reconciliation of the fair value hierarchy to the amount presented in the Consolidated Statements of Assets and Liabilities.~~

Derivative Instrument-Long Exposure Level 1 Level 2 Level 3 Total
Liability
Total return swap with Citibank, N.A. $ —
$ —
$ 5,483,594
$ 5,483,594

The following table presents the fair value measurements of the Company’s total investments, by major class according to the fair value hierarchy, as of December 31, ~~2016:~~2020:

Type of Investment	Level 1		Level 2		Level 3		Total
Asset
Senior secured first lien term loans	$	—	$	—	$	315,490,601	$	315,490,601
Senior secured first lien notes		—		—		8,548,755		8,548,755
Senior secured second lien term loans		—		—		93,794,917		93,794,917
Subordinated notes		—		—		50,039,500		50,039,500
Equity/warrants		767,144		—		47,190,227		47,957,371
Total	$	767,144	$	—	$	515,064,000		515,831,144
Investments measured at net asset value⁽¹⁾								88,155,336
Total Investments, at fair value							$	603,986,480

Type of Investment⁽¹⁾
Level 1 Level 2 Level 3 Total
Asset
Senior secured first lien term loans $ —
$ —
$ 493,340,277
$ 493,340,277
Senior secured first lien notes —
25,540,638
46,429,960
71,970,598
Senior secured second lien term loans —
—
260,008,735
260,008,735
Subordinated notes —
—
55,185,590
55,185,590
Warrants/equity 1,262,666
—
40,879,809
42,142,475
Money market fund 22,966,981
—
—
22,966,981
Total $ 24,229,647
$ 25,540,638
$ 895,844,371
$ 945,614,656
Sierra Senior Loan Strategy JV I LLC $ 60,496,647
Total Investments, at fair value $ 1,006,111,303

~~________________________________~~

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

~~the table are intended to permit reconciliation~~

F-37

Table of ~~the fair value hierarchy to the amount presented in the Consolidated Statements of Assets and Liabilities.~~

Contents

Derivative Instrument-Long Exposure Level 1 Level 2 Level 3 Total
Liability
Total return swap with Citibank, N.A. $ —
$ —
$ 13,647,330
$ 13,647,330

The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the ~~nine~~six months ended ~~September~~June 30, ~~2017:~~2021:

	Senior			Senior			Senior
	Secured			Secured			Secured
	First Lien			First Lien			Second Lien
	Term Loans			Notes			Term Loans			Subordinated Notes			Equity/Warrants			Total
Balance, December 31, 2020	$	315,490,601		$	8,548,755		$	93,794,917		$	50,039,500		$	47,190,227		$	515,064,000
Purchases		61,326,896			—			7,723,713			5,092,500			7,824,964			81,968,073
Sales		(40,361,837	)		(8,561,250	)		(17,880,327	)		(9,690,424	)		(5,595,739	)		(82,089,577	)
Transfers in		—			—			—			—			—			—
Transfers out		—			—			—			—			—			—
Amortization of discount/(premium)		240,969			—			50,173			—			—			291,142
Paid-in-kind interest income		850,523			—			320,387			—			—			1,170,910
Net realized gains/(losses)		346,434			87,500			(3,476,799	)		(506,482	)		(5,118,140	)		(8,667,487	)
Net change in unrealized appreciation/(depreciation)		2,126,454			(75,005	)		7,966,166			9,633,417			11,385,014			31,036,046
Balance, June 30, 2021	$	340,020,040		$	—		$	88,498,230		$	54,568,511		$	55,686,326		$	538,773,107
Change in net unrealized appreciation/ (depreciation) in investments held as of June 30, 2021	$	1,957,700		$	—		$	3,155,108		$	8,739,862		$	6,335,852		$	20,188,522

Senior
Secured
First Lien
Term Loans

Senior
Secured
First Lien
Notes

Senior
Secured
Second Lien
Term Loans
Subordinated Notes
Warrants/
Equity

Total
Return
Swap
Total
Balance, December 31, 2016 $ 493,340,277
$ 46,429,960
$ 260,008,735
$ 55,185,590
$ 40,879,809
$ (13,647,330 ) $ 882,197,041
Purchases 166,644,769
2,480,000
63,746,687
29,344,643
1,433,172
—
263,649,271
Sales (108,227,784 ) (7,860,699 ) (30,398,116 ) (7,885,523 ) (9,488,187 ) —
(163,860,309 )
Transfers in —
9,720,000
—
—
—
—
9,720,000
Transfers out —
(8,622,686 ) —
—
—
—
(8,622,686 )
Amortization of discount/(premium) 703,060
67,631
119,917
—
—
—
890,608
Paid-in-kind interest income 4,432,952
—
—
—
—
—
4,432,952
Net realized gains/(losses) (11,396,034 ) (1,851,063 ) (5,302,703 ) (107,130 ) (3,642,142 ) —
(22,299,072 )
Net change in unrealized appreciation/(depreciation) 3,001,531
633,460
(3,126,418 ) (5,226,121 ) 2,203,868
8,163,736
5,650,056
Balance, September 30, 2017 $ 548,498,771
$ 40,996,603
$ 285,048,102
$ 71,311,459
$ 31,386,520
$ (5,483,594 ) $ 971,757,861
Change in net unrealized appreciation/(depreciation) in investments held as of September 30, 2017⁽¹⁾
$ (4,196,861 ) $ (1,262,262 ) $ (7,763,514 ) $ (5,127,949 ) $ (471,036 ) $ 8,163,736
$ (10,657,886 )

~~__________________________~~

~~(1) Amount is included in the related amount on investments and derivative instruments in the condensed consolidated statements of operations.~~

Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. During the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, the Company recorded ~~$8,622,686 in~~no transfers from Level 3 to Level 2 and ~~$9,720,000~~no transfers from Level 2 to Level 3. The Company recorded no other transfers between levels.

The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the six months ended June 30, 2020:

	Senior			Senior			Senior
	Secured			Secured			Secured
	First Lien			First Lien			Second Lien
	Term Loans			Notes			Term Loans			Subordinated Notes			Equity/Warrants			Total
Balance, December 31, 2019	$	328,816,197		$	14,354,825		$	122,817,885		$	63,021,420		$	38,521,450		$	567,531,777
Purchases		40,242,750			—			2,509,139			—			110,283			42,862,172
Sales		(22,536,083	)		(2,115,625	)		(20,137,262	)		(2,948,249	)		(601,371	)		(48,338,590	)
Transfers in		—			—			—			—			—			—
Transfers out		—			—			—			—			—			—
Amortization of discount/(premium)		578,476			—			(410,364	)		—			—			168,112
Paid-in-kind interest income		1,221,714			—			—			—			18,566			1,240,280
Net realized gains/(losses)		(1,588,561	)		(5,130,000	)		(488,073	)		—			(822,525	)		(8,029,159	)
Net change in unrealized appreciation/(depreciation)		(34,598,594	)		545,514			(13,724,221	)		(17,756,640	)		(3,044,076	)		(68,578,017	)
Balance, June 30, 2020	$	312,135,899		$	7,654,714		$	90,567,104		$	42,316,531		$	34,182,327		$	486,856,575
Change in net unrealized appreciation/(depreciation) in investments held as of June 30, 2020	$	(35,900,472	)	$	(317,286	)	$	(16,809,037	)	$	(17,756,640	)	$	(3,055,047	)	$	(73,838,482	)

Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. During the six months ended June 30, 2020, the Company recorded no transfers from Level 3 to Level 2 and no transfers from Level 2 to Level 3 due to availability of market data and observable valuation inputs to support the valuation. The Company recorded no other transfers between levels.

F-38

~~The following table provides a reconciliation~~

Table of ~~the beginning and ending balances for total investments that use Level 3 inputs for the nine months ended September 30, 2016:~~

Contents

Senior
Secured
First Lien
Term Loans

Senior
Secured
First Lien
Notes

Senior
Secured
Second Lien
Term Loans
Subordinated Notes
Warrants/
Equity

Total
Return
Swap
Total
Balance, December 31, 2015 $ 514,638,092
$ 47,477,500
$ 278,645,464
$ —
$ 13,243,836
$ (27,365,819 ) $ 826,639,073
Purchases 93,833,456
2,109,376
23,788,748
63,389,058
9,149,285
—
192,269,923
Sales (128,395,615 ) (557,303 ) (45,408,193 ) (3,731,087 ) —
—
(178,092,198 )
Transfers in —
1,786,890
—
—
—
—
1,786,890
Transfers out —
(14,773,468 ) —
—
—
—
(14,773,468 )
Amortization of discount/(premium) 268,365
3,897
347,733
—
—
—
619,995
Paid-in-kind interest income 3,461,879
—
82,123
—
178,882
—
3,722,884
Net realized gains/(losses) (10,981,656 ) 30,303
222,827
435,388
(790,778 ) —
(11,083,916 )
Net change in unrealized appreciation/(depreciation) 1,947,197
(156,484 ) 2,303,176
1,059,397
(3,827,464 ) 9,188,445
10,514,267
Balance, September 30, 2016 $ 474,771,718
$ 35,920,711
$ 259,981,878
$ 61,152,756
$ 17,953,761
$ (18,177,374 ) $ 831,603,450
Change in net unrealized appreciation/(depreciation) in investments held as of September 30, 2016⁽¹⁾
$ (7,859,130 ) $ (148,478 ) $ 54,279
$ 1,059,397
$ (4,618,243 ) $ 9,188,445
$ (2,323,730 )

~~_____________________~~

~~(1)Amount is included in the related amount on investments and derivative instruments in the condensed consolidated statements of operations.~~

Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. During the nine months ended September 30, 2016, the Company recorded $14,773,468 in transfers from Level 3 to Level 2 and

~~$1,786,890 in transfers from Level 2 to Level 3 due to availability of market data and observable valuation inputs to support the valuation. The Company recorded no other transfers between levels.~~

The following table presents the quantitative information about Level 3 fair value measurements of the Company’s total investments, as of ~~September~~June 30, ~~2017:~~2021:

Type of Investment	Fair Value		Valuation techniques	Unobservable input⁽¹⁾	Range (weighted average)
Senior Secured First Lien Term Loans	$257,370,718		Income Approach (DCF)	Market Yield	5.36% - 50.94% (7.84%)
Senior Secured First Lien Term Loans	50,936,438		Market Approach (Guideline Comparable)/ Enterprise Value Analysis	EBITDA Multiple	0.80x - 7.50x (5.20x)
				Expected Proceeds	$86.30 $115.00 ($100.65)
				Revenue Multiple	6.00x - 7.00x (6.50x)
Senior Secured First Lien Term Loans	31,712,884		Recent Arms-Length Transaction	Recent Arms-Length Transaction	N/A
Senior Secured Second Lien Term Loans	79,586,433		Income Approach (DCF)	Market Yield	8.68% - 14.33% (10.83%)
				Discount Rate	21.50% - 21.50% (21.50%)
Senior Secured Second Lien Term Loans	8,911,797		Market Approach (Guideline Comparable)	EBITDA Multiple	6.50x - 7.50x (7.00x)
Subordinated Notes	—		Market Approach (Guideline Comparable)	EBITDA Multiple	4.50x - 5.50x (5.00x)
Subordinated Notes	54,568,511		Income Approach (DCF)	Discount Rate	7.58% - 19.00% (15.64%)
				Projected Default rates	2.00% - 2.00% (2.00%)
				Recovery Rates	60.00% - 65.00% (62.50%)
				Reinvestment Rates	99.50% - 99.50% (99.50%)
				Prepayment Rates	20.00% - 20.00% (20.00%)
Subordinated Notes	—		Recent Arms-Length Transaction	Recent Arms-Length Transaction	N/A
Equity	18,828		Recent Arms-Length Transaction	Recent Arms-Length Transaction	N/A
Equity	55,667,498		Market Approach (Guideline Comparable)/Income Approach (DCF)/ Enterprise Value Analysis	EBITDA Multiple	2.00x - 11.50x (9.84x)
				Capitalization Rate	6.75% - 9.00% (8.20%)
				Revenue Multiple	0.50x - 1.00x (0.83x)
				Enterprise Value	$1,200.00 - $1,300.00 ($1,250.00)
				Discount Rate	19.00% - 21.00% (20.00%)
Total	$	538,773,107

Type of Investment Fair Value Valuation techniques
Unobservable input⁽¹⁾
Range (weighted average)
Senior Secured First Lien Term Loan $ 427,209,139
Income Approach (DCF) Market yield 6.00% - 22.21% (9.62%)
Senior Secured First Lien Term Loan 2,576,215
Enterprise Value Analysis Expected Proceeds $0.0M - $2.5M ($2.4M)
Senior Secured First Lien Term Loan 74,754,872
Market Approach (Guideline Comparable)/Market Approach (Comparable Transactions)/Income Approach (DCF) Revenue Multiple, EBITDA Multiple, Discount Rate 0.60x - 3.00x (1.46x) / 4.50x-8.00x (6.92x) / 15.00% - 18.50% (17.08%)
Senior Secured First Lien Term Loan 43,958,545
Recent Arms-length transaction Recent Arms-length transaction N/A
Senior Secured First Lien Note 40,873,945
Income Approach (DCF) Market Yield 7.83% - 13.83% (9.36%)
Senior Secured First Lien Note 122,658
Enterprise Valuation Analysis Expected Proceeds $0.1M - $0.1M ($0.1M)
Senior Secured Second Lien Term Loan 245,617,325
Income Approach (DCF) Market yield 7.71% - 13.82% (9.68%)
Senior Secured Second Lien Term Loan 35,924,527
Recent Arms-length transaction Recent Arms-length transaction N/A
Senior Secured Second Lien Term Loan 3,506,250
Market Approach (Guideline Comparable)/Income Approach (DCF) Revenue Multiple, EBITDA Multiple, Discount Rate 0.40x-0.55x(0.55x) / 3.50x-9.13x(9.13x) / 18.00%-18.00% (18.00%)
Equity/Warrants —
Enterprise Valuation Analysis Expected Proceeds $0.0M - $0.0M ($0.0M)
Preferred Equity 5,530,911
Income Approach (DCF) Market Yield 16.63%-16.63% (16.63%)
Equity/Warrants 12,453,793
Market Approach (Guideline Comparable)/Market Approach (Comparable Transactions)/Income Approach (DCF) Revenue Multiple, EBITDA Multiple, Discount Rate, Book Value Multiple, Average List Price 0.98x-3.00x (1.35x) / 5.00x-13.00x (8.02x) / 15.00% - 23.00% (13.65%) / 1.25x - 1.25x (1.25x) / $1.0M - $1.0M ($1.0M)
Equity/Warrants 13,401,816
Recent Arms-length transaction Recent Arms-length transaction N/A
Subordinated Notes 41,967,500
Income Approach (DCF) Discount Rate 13.00% - 14.00% (13.28%)
Subordinated Notes 29,343,959
Recent Arms-length transaction Recent Arms-length transaction N/A
Total $ 977,241,455

Total Return Swap (5,483,594 ) Income Approach (DCF) Market yield 5.16% - 47.94% (7.99%)
Total $ 971,757,861

~~_________________________________~~

(1)
~~(1)~~	Represents the method used when the Company has determined that market participants would use such inputs when measuring the fair value of these investments.

F-39

Table of Contents

The following table presents the quantitative information about Level 3 fair value measurements of the Company’s total investments, as of December 31, ~~2016:~~2020:

Type of Investment	Fair Value		Valuation techniques	Unobservable input⁽¹⁾	Range (weighted average)
Senior Secured First Lien Term Loans	$	209,276,266	Income Approach (DCF)	Market Yield	4.61% - 26.41% (7.93%)
Senior Secured First Lien Term Loans		84,351,515	Market Approach (Guideline Comparable)/Income Approach (DCF)/ Enterprise Value Analysis	EBITDA Multiple Expected Proceeds Revenue Multiple Discount Rate	2.00x - 9.50x (6.21x) $48.00 - $115.00 ($69.29) 0.80x - 1.00x (0.90x) 16.9% - 18.9% (17.9%)
Senior Secured First Lien Term Loans		21,862,820	Recent Arms-Length Transaction	Recent Arms-Length Transaction	N/A
Senior Secured First Lien Notes		8,548,755	Income Approach (DCF)	Market Yield	3.42% - 11.86% (10.78%)
Senior Secured Second Lien Term Loans		74,896,187	Income Approach (DCF)	Market Yield	7.53% - 21.50% (13.85%)
Senior Secured Second Lien Term Loans		13,998,730	Market Approach (Guideline Comparable)	EBITDA Multiple Expected Proceeds	6.50x - 7.50x (7.00x) $209.70 - $233.00 ($221.35)
Senior Secured Second Lien Term Loans		4,900,000	Recent Arms-Length Transaction	Recent Arms-Length Transaction	N/A
Subordinated Notes		48,315,900	Income Approach (DCF)	Discount Rate Projected Default rates Recovery Rates Reinvestment Rates Prepayment Rates	11.02% - 21.00% (18.72%) 2.00% - 2.00% (2.00%) 65.00% - 65.00% (65.00%) 98.00% - 98.00% (98.00%) 20.00% - 25.00% (22.50%)
Subordinated Notes		1,723,600	Recent Arms-Length Transaction	Recent Arms-Length Transaction	N/A
Equity		38,001,340	Market Approach (Guideline Comparable)/Income Approach (DCF)/Enterprise Value Analysis	Book Value Multiple EBITDA Multiple Capitalization Rate Revenue Multiple Expected Proceeds	0.75x - 1.00x (0.88x) 2.00x - 9.50 (8.39x) 7.50x - 9.30x (8.54%) 0.50x - 1.00x (0.83x) $0.10 - $66.20 ($2.60)
Equity		9,188,887	Recent Arms-Length Transaction	Recent Arms-Length Transaction	N/A
Total	$	515,064,000

Type of Investment Fair Value Valuation techniques
Unobservable input⁽¹⁾
Range (weighted average)
Senior Secured First Lien Term Loan $ 339,728,530
Income Approach (DCF) Market yield 7.44% - 18.50% (9.65%)
Senior Secured First Lien Term Loan 7,373,318
Market Approach (Guideline Comparable) 2016 and NTM Revenue Multiple 0.50x - 0.75x (0.63x)/0.50x - 0.75x (0.63x)
Senior Secured First Lien Term Loan 6,868,420
Market Approach (Guideline Comparable) Revenue Generating Units $393.75 - $525.00 ($459.38)
Senior Secured First Lien Term Loan 23,280,607
Market Approach (Guideline Comparable)/Income Approach (DCF) NTM Revenue Multiple, NTM EBITDA Multiple Discount Rate 0.40x - 1.25x (1.09x) / 5.00x - 7.00x (6.57x) / 17.50% - 20.00% (18.93%)
Senior Secured First Lien Term Loan 20,885,087
Market Approach (Guideline Comparable) NTM Revenue Multiple, Discount Rate 2.75x-3.25x (3.00x) /14.00%-16.00% (15.00%)
Senior Secured First Lien Term Loan 16,246,819
Market Approach (Guideline Comparable)/Income Approach (DCF) Run-Rate Revenue Multiple, Run-Rate EBITDA Multiple, Discount Rate 0.50x - 1.00x (0.75x)/5.50x - 6.50x (6.00x)/18.50% - 21.50% (20.00%)
Senior Secured First Lien Term Loan 2,791,682
Market Approach (Guideline Comparable) NTM Revenue Multiple, NTM EBITDA Multiple 0.5x - 1.00x (0.75x) /4.00x-5.00x (4.50x)

Type of Investment Fair Value Valuation techniques
Unobservable input⁽¹⁾
Range (weighted average)
Senior Secured First Lien Term Loan 84,190,814
Recent Arms-length transaction Recent Arms-length transaction N/A
Senior Secured First Lien Notes 32,142,804
Income Approach (DCF) Market yield 7.57% - 115.94% (12.85%)
Senior Secured First Lien Notes 6,105,000
Recent Arms-length transaction Recent Arms-length transaction N/A
Senior Secured First Lien Notes 157,156
Enterprise Valuation Analysis Estimated Liquidation Proceeds $45.9M - $73.2M ($59.7M)
Senior Secured Second Lien Term Loan 242,539,805
Income Approach (DCF) Market yield 8.29% - 10.05% (73.13%)
Senior Secured Second Lien Term Loan 6,472,505
Recent Arms-length transaction Recent Arms-length transaction N/A
Senior Secured Second Lien Term Loan —
Market Approach (Guideline Comparable) LTM Revenue Multiple, LTM EBITDA Multiple 0.5 - 1.0x (0.75x) / 6.0x - 7.0x (6.5x)
Senior Secured Second Lien Term Loan 10,996,425
Market Approach (Guideline Comparable)/Income Approach (DCF) LTM Revenue Multiple, NTM Revenue Multiple, LTM EBITDA Multiple, NTM EBITDA Multiple, Discount Rate 0.40x-0.60x(0.50x) /0.40x-0.60x(0.50x) / 8.25x-9.25x (8.75x)/ 7.50x-8.50x (8.00x)/17.50%-21.50% (19.50%)
Equity/Warrants —
Enterprise Valuation Analysis Estimated Liquidation Proceeds $45.9M - $73.2M ($59.7M)
Equity/Warrants 967,238
Market Approach (Guideline Comparable)/Income Approach (DCF) LTM EBITDA, Run-Rate Multiple, Discount rate 7.00x - 8.00x (7.50x)/7.00x - 8.00x (7.50x) / 16.00%-18.00% (17.00%)
Equity/Warrants 5,051,193
Income Approach (DCF) Market Yield 17.45%-17.45% (17.45%)
Equity/Warrants —
Market Approach (Guideline Comparable)/Income Approach (DCF) NTM Revenue Multiple, NTM EBITDA Multiple, Discount Rate 0.40x - 1.00x (0.90x)/5.00x - 7.00x (6.65x)/17.50% - 18.00% (17.59%)
Equity/Warrants —
Market Approach (Guideline Comparable)/Income Approach (DCF) Run-Rate Revenue Multiple, Run-Rate EBITDA Multiple, Discount Rate 0.50x - 1.00x (0.75x)/5.50x - 6.50x (6.00x)/18.50% - 21.50% (20.00%)
Equity/Warrants —
Market Approach (Guideline Comparable) Revenue Generating Units $393.75 - $525.00 ($459.38)
Equity/Warrants —
Market Approach (Guideline Comparable) NTM Revenue Multiple, Discount Rate 2.75x-3.25x (3.00x) /14.00%-16.00% (15.00%)
Equity/Warrants —
Market Approach (Guideline Comparable) LTM EBITDA Multiple 12.5x - 13.5x (0.0x)
Equity/Warrants 4,265,419
Market Approach (Guideline Comparable) / Precedent Transaction LTM and NTM EBITDA Multiple 4.50x-8.00x (7.10x) /4.50x-7.50x (6.72x)
Equity/Warrants 16,095,959
Recent Arms-length transaction Recent Arms-length transaction N/A
Subordinated Notes 55,185,590
Income Approach (DCF) Discount Rate 11.50% - 15.00% (13.21%)
Subordinated Notes 14,500,000
Recent Arms-length transaction Recent Arms-length transaction N/A
Total $ 895,844,371

Total Return Swap (13,647,330 ) Income Approach (DCF) Market yield 4.43% - 73.13% (9.56%)
Total $ 882,197,041

~~________________________________~~

(1)
~~(1)~~	Represents the method used when the Company has determined that market participants would use such inputs when measuring the fair value of these investments.

The significant unobservable inputs used in the fair value measurement of the Company’s debt and derivative investments are market yields. Increases in market yields would result in lower fair value measurements.

The significant unobservable inputs used in the fair value measurement of the Company’s ~~warrants/equity~~equity/warrants investments are comparable company multiples of revenue or EBITDA for the latest twelve months (“LTM”), next twelve months (“NTM”) or a reasonable period a market participant would consider. Increases in revenue or EBITDA multiples in isolation would result in higher fair value measurement.

F-40

Table of Contents

Note 5. ~~Total Return Swap~~

~~On August 27, 2013, the Company, through its wholly-owned financing subsidiary, Arbor, entered into a TRS with Citibank, N.A. (“Citibank”) that is indexed to a basket of loans.~~

SIC Advisors acts as the investment manager of Arbor and has discretion over the composition of the basket of loans underlying the TRS. The terms of the TRS are governed by an ISDA 2002 Master Agreement, the Schedule thereto and Credit Support Annex to such Schedule, and the Confirmation exchanged thereunder, between Arbor and Citibank, which collectively establish the TRS, and are collectively referred to herein as the “TRS Agreement”. On March 21, 2014, Arbor amended and restated its Confirmation Letter Agreement (the “Amended Confirmation Agreement”) with Citibank. The Amended Confirmation Agreement increased the maximum market value (determined at the time each such loan becomes subject to the TRS) of the portfolio of loans that Arbor may select from $100 million to $200 million, and increased the interest rate payable to Citibank from LIBOR plus 1.30% per annum to LIBOR plus 1.35% per annum. On July 23, 2014, Arbor entered into the Second Amended and Restated Confirmation Letter Agreement with CitiBank to increase the maximum market value (determined at the time each such loan becomes subject to the TRS) of the portfolio of loans that Arbor may select from $200 million to $350 million. On June 8, 2015, Arbor entered into the Third Amended and Restated Confirmation Letter Agreement with CitiBank to decrease the maximum market value (determined at the time each such loan becomes subject to the TRS) of the portfolio of loans that Arbor may select from $350 million to $300 million. On March 21, 2016, Arbor entered into the Fourth Amended and Restated Confirmation Letter Agreement (the “Fourth Amended Confirmation Agreement”) with Citibank to extended the term of the TRS from March 21, 2016 through March 21, 2019 and increased the interest rate payable to Citi from LIBOR plus 1.35% per annum to LIBOR plus 1.65% per annum. On September 29, 2017, Arbor entered into the Fifth Amended and Restated Confirmation Letter Agreement (the “Fifth Amended Confirmation Agreement”) with Citibank to reduce the maximum portfolio notional (determined at the time each such loan becomes subject to the TRS) from $300,000,000 to $180,000,000, through incremental reductions of $60,000,000 on October 3, 2017 and $20,000,000 on each of November 3, 2017, December 3, 2017 and January 3, 2018. The Fifth Amended Confirmation Agreement also decreased the interest rate payable to Citibank from LIBOR plus 1.65% per annum to LIBOR plus 1.60% per annum.

Pursuant to the terms of the TRS Agreement, as amended and subject to conditions customary for transactions of this nature, Arbor may select a portfolio of loans with a maximum market value (determined at the time each such loan becomes subject to the TRS) of $300 million, subject to the reduction provided for in the Fifth Amended Confirmation Agreement, which is also referred to as the maximum notional amount of the TRS. Arbor receives from Citibank a periodic payment on set dates that is based upon any coupons, both earned and accrued, generated by the loans underlying the TRS, subject to limitations described in the TRS Agreement as well as any fees associated with the loans included in the portfolio. Arbor pays to Citibank interest at a rate equal to one-month LIBOR plus 1.60% per annum. In addition, upon the termination or repayment of any loan subject to the TRS, Arbor either receives from Citibank the appreciation in the value of such loan, or pays to Citibank any depreciation in the value of such loan.

Citibank may terminate the TRS on or after the second anniversary of the effectiveness of the TRS. SIC Advisors may terminate the TRS on behalf of Arbor at any time upon providing 10 days prior notice to Citibank.

Arbor is required to pay a minimum usage fee in connection with the TRS of 1.60% on the amount equal to 85% of the average daily unused portion of the maximum amount permitted under the TRS. Such minimum usage fee will not apply during the first 365 days and last 60 days of the term of the TRS. Arbor will also pay Citibank customary fees in connection with the establishment and maintenance of the TRS. During the three and nine months ended September 30, 2017, Arbor paid $12,823 and $67,961 in minimum usage fees, respectively. During the three and nine months ended September 30, 2016, Arbor paid $193,194 and $534,170, respectively, in minimum usage fees.

Arbor is required to initially cash collateralize a specified percentage of each loan (generally 20% to 30% of the market value of such loan) included under the TRS in accordance with margin requirements described in the TRS Agreement. As of September 30, 2017 and December 31, 2016, Arbor has posted $68,000,000 and $79,620,942, respectively, in collateral to Citibank in relation to the TRS which is recorded on the consolidated statements of assets and liabilities as cash collateral on total return swap. Arbor may be required to post additional collateral from time to time as a result of a decline in the mark-to-market value of the portfolio of loans subject to the TRS. The obligations of Arbor under the TRS Agreement are non-recourse to the Company and the Company’s exposure under the TRS Agreement is limited to the value of the Company’s investment in Arbor, which generally equals the value of cash collateral provided by Arbor under the TRS Agreement.

In connection with the TRS, Arbor has made customary representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar transactions. In addition to customary events of default and termination events included in the form ISDA 2002 Master Agreement, the TRS Agreement contains the following termination events: (a) a failure to satisfy the portfolio criteria for at least 30 days; (b) a failure to post initial cash collateral or additional collateral as required by the TRS Agreement; (c) a default by Arbor or the Company with respect to indebtedness in an amount equal to or greater than the lesser of $10,000,000 and 2% of the Company’s NAV at such time; (d) a merger of Arbor or the Company meeting certain criteria; (e) the Company or Arbor amending their respective constituent documents to alter their investment strategy in a manner that has or could reasonably be expected to have a material adverse effect; and (f) SIC Advisors ceasing to be

the investment manager of Arbor or to have authority to enter into transactions under the TRS Agreement on behalf of Arbor, and not being replaced by an entity reasonably acceptable to Citibank. As of September 30, 2017 and December 31, 2016, the Company did not have any derivatives with contingent features in net liability positions; therefore, if a trigger event had occurred, no amount would have been required to be posted by the Company.

The Company’s maximum credit risk exposure as of September 30, 2017 and December 31, 2016 is $69,003,667 and $80,910,105, respectively, which is recorded on the consolidated statements of assets and liabilities as cash collateral on total return swap and receivable due on total return swap.

The Company’s receivable from Citibank represents realized amounts from payments on underlying loans in the TRS portfolio that as of September 30, 2017 and December 31, 2016 was $1,003,667 and $1,289,163, respectively, which is recorded on the consolidated statements of assets and liabilities as receivable due on total return swap. The Company does not offset collateral posted in relation to the TRS with any unrealized appreciation or depreciation outstanding in the consolidated statements of assets and liabilities as of September 30, 2017 or December 31, 2016.

~~Transactions in TRS contracts during the three and nine months ended September 30, 2017 and 2016 were as follows:~~

Three Months Ended
September 30, Nine Months Ended
September 30,
2017 2016 2017 2016
Interest income and settlement from TRS portfolio $ 2,348,862
$ (1,463,792 ) $ 6,746,607
$ (1,821,535 )
Traded gains/(loss) on TRS loan sales 785,847
2,224,803
(8,482,509 ) 6,667,185
Net realized gains/(loss) on TRS portfolio $ 3,134,709
$ 761,011
$ (1,735,902 ) $ 4,845,650

Net change in unrealized appreciation/(depreciation) on TRS portfolio $ (2,032,534 ) $ 5,159,214
$ 8,163,736
$ 9,188,445

The Company held one derivative position as of September 30, 2017 and December 31, 2016 subject to a Master Agreement (“MA”). The following table represents the Company’s gross and net amounts after offset under the MA, of the derivative assets and liabilities presented by derivative type net of the related collateral pledged by the Company as of September 30, 2017 and December 31, 2016:

Gross
Derivative Assets/
(Liabilities)
Subject to MA

Derivative Amount
Available for
Offset

Net Amount Presented
in the Consolidated
Statements of Assets
and Liabilities

Cash Collateral (received)/pledged ⁽¹⁾

Net Amount of
Derivative
Assets/(Liabilities)
September 30, 2017
Total Return Swap⁽¹⁾
$ (5,483,594 ) $ —
$ (5,483,594 ) $ 5,483,594
$ —
December 31, 2016
Total Return Swap⁽¹⁾
$ (13,647,330 ) $ —
$ (13,647,330 ) $ 13,647,330
$ —

~~______________________________~~


~~(1)~~	As of September 30, 2017 and December 31, 2016, $68,000,000 and $79,620,942, respectively, of cash was posted for initial margin requirements for the TRS as reported on the consolidated statements of assets and liabilities as cash collateral on total return swap.

~~The following table shows the volume of the Company’s derivative transactions for the three and nine months ended September 30, 2017 and 2016.~~

Three Months Ended
September 30, Nine Months Ended
September 30,
2017 2016 2017 2016
Average notional par amount of contracts $ 246,554,568
$ 208,253,776
$ 248,738,019
$ 210,765,232

~~The following is a summary of the TRS reference assets as of September 30, 2017:~~

Company⁽¹⁾
Industry Type of Investment Maturity Par Amount
Initial Notional
Cost⁽²⁾
Fair Value Unrealized Appreciation/ (Depreciation)
Amplify Snack Brands, Inc. Beverage & Food
Senior Secured First Lien Term Loans⁽⁴⁾ LIBOR + 5.500%, 1.000% Floor
9/4/2023 1,362,115
1,348,494
1,339,640
(8,854 )
AmWINS Group, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured Second Lien Term Loans⁽⁴⁾   LIBOR + 6.750%, 1.000% Floor
1/25/2025 4,000,000
3,970,000
4,077,600
107,600
Anaren, Inc. Aerospace & Defense
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 4.500%, 1.000% Floor
2/18/2021 4,643,220
4,596,788
4,666,436
69,648
AP Gaming I, LLC Hotel, Gaming & Leisure
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 5.500%, 1.000% Floor
2/15/2024 4,000,000
3,990,000
4,065,000
75,000
Atrium Innovations, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loans⁽³⁾⁽⁶⁾   LIBOR + 3.500%, 1.000% Floor
2/15/2021 4,974,546
4,968,328
4,999,419
31,091
Blucora, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽³⁾⁽⁶⁾   LIBOR + 3.750%, 1.000% Floor
5/22/2024 2,333,333
2,321,667
2,350,833
29,167
BCPE Eagle Buyer LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 4.250%, 1.000% Floor
3/16/2024 4,987,500
4,937,625
4,950,094
12,469
Comfort Holding, LLC Consumer Goods: Durable
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 4.750%, 1.000% Floor
2/5/2024 6,982,500
6,912,675
6,240,609
(672,066 )
Comfort Holding, LLC Consumer Goods: Durable
Senior Secured Second Lien Term Loans⁽⁵⁾   LIBOR + 10.000%, 1.000% Floor
2/3/2025 1,500,000
1,440,000
1,275,300
(164,700 )
CPI Holdco, LLC Capital Equipment
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 4.000%, 1.000% Floor
3/21/2024 5,975,000
5,945,125
6,019,813
74,688
CPI Holdings, Inc. High Tech Industries
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 3.500%, 1.000% Floor
7/26/2024 9,000,000
9,000,000
8,994,420
(5,580 )
CT Technologies Intermediate Holdings, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 4.250%, 1.000% Floor
12/1/2021 997,455
977,506
997,455
19,949
DiversiTech Holdings, Inc. Wholesale
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 3.500%, 1.000% Floor
6/3/2024 2,000,000
1,995,000
2,004,160
9,160
Encompass Digital Media, Inc Media: Broadcasting & Subscription
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 4.500%, 1.000% Floor
6/6/2021 4,850,000
4,825,750
4,595,375
(230,375 )
EVO Payments International, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 5.000%, 1.000% Floor
12/22/2023 2,985,000
2,955,150
3,014,850
59,700
Explorer Holdings, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 3.750%, 1.000% Floor
5/2/2023 1,817,019
1,812,476
1,823,923
11,447
Fieldwood Energy LLC Energy: Oil & Gas
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 7.000%, 1.000% Floor
8/31/2020 1,222,222
1,100,000
1,069,444
(30,556 )
Fieldwood Energy LLC Energy: Oil & Gas
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 7.125%, 1.250% Floor
9/30/2020 1,650,000
1,641,125
1,130,250
(510,875 )
Fieldwood Energy LLC Energy: Oil & Gas
Senior Secured Second Lien Term Loans⁽⁶⁾   LIBOR + 7.125%, 1.250% Floor
9/30/2020 2,596,305
2,676,375
1,022,944
(1,653,431 )
Freedom Mortgage Corporation Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽⁸⁾   LIBOR + 5.500%, 1.000% Floor
2/17/2022 450,000
450,000
450,000
—
Global Eagle Entertainment Inc. Telecommunications
Senior Secured First Lien Term Loans⁽³⁾⁽⁸⁾   LIBOR + 7.000%, 1.000% Floor
1/6/2023 4,173,750
4,096,238
4,142,447
46,209
Imagine! Print Solutions, LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 4.750%, 1.000% Floor
6/21/2022 5,985,000
5,925,150
5,925,150
—
Iqor US Inc. Services: Business
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 5.000%, 1.000% Floor
4/1/2021 4,533,016
4,442,356
4,483,153
40,797
Isola USA Corp. High Tech Industries
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 8.250%, 1.000% Floor
11/29/2018 3,620,650
3,496,750
3,148,155
(348,595 )

Company⁽¹⁾
Industry Type of Investment Maturity Par Amount
Initial Notional
Cost⁽²⁾
Fair Value Unrealized Appreciation/ (Depreciation)
Keystone Acquisition Corp. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 5.250%, 1.000% Floor
5/1/2024 2,346,000
2,346,000
2,346,000
—
KNB Holdings Corporation Consumer Goods: Durable
Senior Secured First Lien Term Loans⁽⁸⁾   LIBOR + 5.500%, 1.000% Floor
4/26/2024 2,950,000
2,912,375
2,957,375
45,000
Kronos Incorporated Services: Business
Senior Secured First Lien Term Loans⁽³⁾⁽⁶⁾   LIBOR + 3.500%, 1.000% Floor
11/1/2023 2,985,019
2,970,094
3,000,750
30,656
Kronos Incorporated Services: Business
Senior Secured Second Lien Term Loans⁽³⁾⁽⁶⁾   LIBOR + 8.250%, 1.000% Floor
11/1/2024 2,000,000
1,980,000
2,061,780
81,780
LifeMiles Ltd. Services: Consumer
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 5.500%, 1.000% Floor
8/18/2022 4,950,000
4,900,500
4,900,500
—
Lightstone HoldCo LLC Utilities: Electric
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 4.500%, 1.000% Floor
1/30/2024 2,965,000
2,905,700
2,950,175
44,475
Liquidnet Holdings, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 4.250%, 1.000% Floor
7/11/2024 3,000,000
2,970,000
3,007,500
37,500
Livingston International, Inc. Transportation: Cargo
Senior Secured Second Lien Term Loans⁽¹⁾⁽⁶⁾   LIBOR + 8.250%, 1.250% Floor
4/17/2020 1,954,783
1,969,443
1,915,491
(53,952 )
Midwest Physician Administrative Services, LLC Healthcare & Pharmaceuticals
Senior Secured Second Lien Term Loans⁽⁶⁾   LIBOR + 7.000%, 1.000% Floor
8/15/2025 3,950,000
3,910,500
3,910,500
—
Melissa & Doug, LLC Consumer Goods: Durable
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 4.500%, 1.000% Floor
6/19/2024 1,500,000
1,492,500
1,516,875
24,375
MH SUB I, LLC Services: Consumer
Senior Secured Second Lien Term Loans⁽⁶⁾   LIBOR + 7.500%, 1.000% Floor
9/15/2025 1,950,000
1,930,500
1,932,119
1,619
MH SUB I, LLC Services: Consumer
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 3.750%, 1.000% Floor
9/13/2024 6,600,000
6,567,000
6,555,978
(11,022 )
MPH Acquisition Holdings LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 3.000%, 1.000% Floor
6/7/2023 4,721,347
4,707,708
4,755,293
47,585
MWI Holdings, Inc. Capital Equipment
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 5.500%, 1.000% Floor
6/29/2020 3,960,000
3,920,400
3,960,000
39,600
Neustar, Inc. High Tech Industries
Senior Secured First Lien Term Loans⁽³⁾⁽⁶⁾   LIBOR + 3.750%, 1.000% Floor
3/1/2024 2,000,000
1,990,000
2,014,160
24,160
Neustar, Inc. High Tech Industries
Senior Secured Second Lien Term Loans⁽³⁾⁽⁶⁾   LIBOR + 8.000%, 1.000% Floor
3/1/2025 1,000,000
985,000
1,010,000
25,000
New Media Holdings II LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 6.250%, 1.000% Floor
6/4/2020 947,570
949,939
947,570
(2,369 )
Nine West Holdings, Inc. Consumer Goods: Non-durable
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 3.750%, 1.000% Floor
10/8/2019 5,758,716
5,744,319
4,843,080
(901,239 )
Petco Animal Supplies, Inc. Retail
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 3.000%, 1.000% Floor
1/26/2023 8,877,505
8,739,703
7,305,477
(1,434,226 )
PetroChoice Holdings, Inc. Chemicals, Plastics & Rubber
Senior Secured First Lien Term Loans⁽⁵⁾   LIBOR + 4.500%, 1.000% Floor
8/22/2022 4,974,684
4,974,684
4,974,684
—
Resolute Investment Managers, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 4.250%, 1.000% Floor
4/30/2022 1,924,735
1,918,793
1,943,983
25,190
Rough Country, LLC Automotive
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 4.500%, 1.000% Floor
5/25/2023 2,950,000
2,920,500
2,920,500
—
SCS Holdings I Inc. Wholesale
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 4.250%, 1.000% Floor
10/31/2022 1,405,036
1,401,524
1,419,087
17,563
SESAC Holdco II LLC Media: Broadcasting & Subscription
Senior Secured Second Lien Term Loans⁽⁴⁾   LIBOR + 7.250%, 1.000% Floor
2/24/2025 2,000,000
1,980,000
1,985,000
5,000

Company⁽¹⁾
Industry Type of Investment Maturity Par Amount
Initial Notional
Cost⁽²⁾
Fair Value Unrealized Appreciation/ (Depreciation)
Silversea Cruise Finance Ltd. Hotel, Gaming & Leisure Senior Secured First Lien Notes 7.250% 2/1/2025 1,000,000
1,000,000
1,071,250
71,250
Sparta Systems, Inc. High Tech Industries
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 4.000%, 1.000% Floor
8/21/2024 5,000,000
4,987,500
5,006,250
18,750
Sundial Group Holdings LLC Services: Consumer
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 4.750%, 1.000% Floor
8/15/2024 5,000,000
4,925,000
4,925,000
—
Sungard Availability Services Capital Inc. Services: Business
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 7.000%, 1.000% Floor
9/29/2021 7,989,438
7,956,046
7,430,177
(525,869 )
Tensar Corporation Capital Equipment
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 4.750%, 1.000% Floor
7/9/2021 11,114,962
11,003,812
10,309,127
(694,685 )
TouchTunes Interactive Networks, Inc. Media: Diversified & Production
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 4.750%, 1.000% Floor
5/28/2021 947,583
953,505
953,552
47
TCH-2 Holdings, LLC Hotel, Gaming & Leisure
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 4.000%, 1.250% Floor
5/6/2021 3,193,700
3,161,763
3,205,677
43,913
Traverse Midstream Partners LLC Energy: Oil & Gas
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 4.000%, 1.000% Floor
9/27/2024 1,950,000
1,940,250
1,969,500
29,250
tronc, Inc. Media: Advertising, Printing & Publishing
Senior Secured First Lien Term Loans⁽³⁾⁽⁴⁾   LIBOR + 4.750%, 1.000% Floor
8/4/2021 6,708,333
6,641,250
6,750,260
109,010
UFC Holdings, LLC Hotel, Gaming & Leisure
Senior Secured Second Lien Term Loans⁽⁴⁾   LIBOR + 7.500%, 1.000% Floor
8/18/2024 500,000
495,000
507,000
12,000
US Shipping Partners LP Transportation: Cargo
Senior Secured First Lien Term Loans⁽⁴⁾   LIBOR + 4.250%, 1.000% Floor
6/26/2021 1,688,831
1,676,165
1,427,062
(249,103 )
VCVH Holding Corp. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loans⁽⁶⁾   LIBOR + 5.000%, 1.000% Floor
6/1/2023 990,000
980,100
988,614
8,514
Veresen Midstream Limited Partnership Energy: Oil & Gas
Senior Secured First Lien Term Loans⁽³⁾⁽⁴⁾   LIBOR + 3.500%, 1.000% Floor
3/31/2022 2,969,620
2,933,688
2,991,892
58,205
Total 220,805,243
218,959,901
212,874,898
(6,085,003 )
Total accrued interest income, net of expenses 601,409
Total unrealized depreciation on total return swap $ (5,483,594 )

~~_____________________________~~


~~(1)~~	~~All investments are domiciled in the United States except for Livingston International, Inc., which is domiciled in Canada. All foreign investments are denominated in US Dollars.~~


~~(2)~~	~~Represents the initial amount of par of an investment in which the TRS is referenced.~~


~~(3)~~	~~The investment is not a qualifying asset under the 1940 Act.~~


~~(4)~~	The interest rate on these loans is subject to a base rate plus 1 Month (“1M”) LIBOR, which at September 30, 2017 was 1.23%. As the interest rate is subject to a minimum LIBOR floor which was greater than the 1M LIBOR rate at September 30, 2017, the prevailing rate in effect at September 30, 2017 was the base rate plus the LIBOR floor.


~~(5)~~	The interest rate on these loans is subject to a base rate plus 2 Month (“2M”) LIBOR, which at September 30, 2017 was 1.27%. As the interest rate is subject to a minimum LIBOR floor which was greater than the 2M LIBOR rate at September 30, 2017, the prevailing rate in effect at September 30, 2017 was the base rate plus the LIBOR floor.


~~(6)~~	The interest rate on these loans is subject to a base rate plus 3 Month (“3M”) LIBOR, which at September 30, 2017 was 1.33%. As the interest rate is subject to a minimum LIBOR floor which was greater than the 3M LIBOR rate at September 30, 2017, the prevailing rate in effect at September 30, 2017 was the base rate plus the LIBOR floor.

~~The following is a summary of the TRS reference assets as of December 31, 2016:~~

Company⁽¹⁾
Industry Type of Investment Maturity Par Amount
Initial Notional
Cost⁽²⁾
Fair Value Unrealized Appreciation/(Depreciation)
Acrisure, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.750%, 1.000% Floor
11/22/2023 $ 2,500,000
$ 2,475,000
$ 2,527,350
$ 52,350
Albertson's LLC Retail
Senior Secured First Lien Term Loans⁽³⁾⁽⁵⁾LIBOR + 3.000%, 0.750% Floor
8/25/2021 2,000,000
2,000,000
2,022,080
22,080
AMC Entertainment Holdings, Inc. Hotel, Gaming & Leisure
Senior Secured First Lien Term Loans⁽⁵⁾ LIBOR + 2.750%, 0.750% Floor
12/15/2023 2,000,000
1,995,000
2,018,500
23,500
AMF Bowling Centers, Inc Services: Consumer
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 5.000%, 1.000% Floor
9/19/2023 6,842,500
6,739,863
6,821,151
81,288
Amplify Snack Brands, Inc. Beverage & Food
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 5.500%, 1.000% Floor
9/2/2023 3,000,000
2,970,000
2,912,490
(57,510 )
Answsers Corporation High Tech Industries
Senior Secured First Lien Term Loans⁽⁵⁾LIBOR + 5.250%, 1.000% Floor
10/1/2021 14,775,000
14,257,875
7,313,625
(6,944,250 )
ANVC Merger Corp. Aerospace & Defense
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.500%, 1.000% Floor
2/18/2021 4,691,841
4,644,923
4,656,653
11,730
AP Gaming I, LLC Hotel, Gaming & Leisure
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 8.250%, 1.000% Floor
12/21/2020 10,645,102
10,476,828
10,574,099
97,271
Astro AB Borrower, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.500%, 1.000% Floor
4/30/2022 965,761
960,932
974,211
13,279
Asurion, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽⁵⁾ LIBOR + 3.750%, 1.000% Floor
11/3/2023 1,000,000
995,000
1,013,750
18,750
Atkore International, Inc Wholesale
Senior Secured First Lien Term Loans⁽³⁾⁽⁷⁾ LIBOR + 3.000%, 1.000% Floor
12/22/2023 3,000,000
2,992,500
3,022,500
30,000
ConvergeOne Holdings Corp. Telecommunications
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 5.375%, 1.000% Floor
6/17/2020 2,500,000
2,462,500
2,487,500
25,000
CSP Technologies North America, LLC Containers, Packaging & Glass
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 6.000%, 1.000% Floor
1/29/2022 9,780,882
9,585,265
9,634,169
48,904
Encompass Digital Media, Inc Media: Broadcasting & Subscription
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.500%, 1.000% Floor
6/6/2021 4,887,500
4,863,063
4,618,688
(244,375 )
EVO Payments International, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽³⁾ LIBOR + 5.000%, 1.000% Floor
12/22/2023 3,000,000
2,970,000
2,970,000
—
Fieldwood Energy LLC Energy: Oil & Gas
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 7.000%, 1.000% Floor
8/31/2020 1,222,222
1,100,000
1,155,000
55,000
Fieldwood Energy LLC Energy: Oil & Gas
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 7.125%, 1.250% Floor
9/30/2020 1,650,000
1,641,125
1,431,375
(209,750 )
Fieldwood Energy LLC Energy: Oil & Gas
Senior Secured Second Lien Term Loans⁽⁷⁾ LIBOR + 7.125%, 1.250% Floor
9/30/2020 2,596,305
2,676,375
1,817,414
(858,961 )
First Data Corporation Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽⁵⁾LIBOR + 3.000%, 0.000% Floor
7/8/2022 1,000,000
1,000,000
1,010,210
10,210
Flex Acquisition Company, Inc. Containers, Packaging & Glass
Senior Secured First Lien Term Loans⁽³⁾⁽⁷⁾ LIBOR + 3.250%, 1.000% Floor
12/29/2023 1,000,000
995,000
1,008,330
13,330
Four Seasons Holdings Inc. Hotel, Gaming & Leisure
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 3.000%, 0.750% Floor
11/30/2023 1,000,000
995,000
1,011,250
16,250
Genex Services, Inc. Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽⁵⁾ LIBOR + 4.250%, 1.000% Floor
5/28/2021 2,942,374
2,927,662
2,920,306
(7,356 )
GTCR Valor Companies, Inc. Media: Diversified & Production
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 6.000%, 1.000% Floor
6/16/2023 4,987,500
4,788,000
4,925,156
137,156
Harbortouch Payments, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.750%, 1.000% Floor
10/13/2023 5,000,000
4,950,000
4,950,000
—

Company⁽¹⁾
Industry Type of Investment Maturity Par Amount
Initial Notional
Cost⁽²⁾
Fair Value Unrealized Appreciation/(Depreciation)
HNC Holdings, Inc. Construction & Building
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.500%, 1.000% Floor
10/5/2023 572,000
569,140
577,720
8,580
Hudson Products Holdings Inc Capital Equipment
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.000%, 1.000% Floor
3/15/2019 1,862,892
1,853,578
1,632,360
(221,218 )
Imagine! Print Solutions, LLC Media: Advertising, Printing & Publishing
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 6.000%, 1.000% Floor
3/30/2022 4,977,182
4,916,266
5,026,954
110,688
Iqor US Inc. Services: Business
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 5.000%, 1.000% Floor
4/1/2021 7,591,111
7,439,289
7,230,533
(208,756 )
Isola USA Corp. High Tech Industries
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 8.250%, 1.000% Floor
11/29/2018 3,697,045
3,595,250
3,441,172
(154,078 )
J.D. Power and Associates Services: Consumer
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.250%, 1.000% Floor
9/7/2023 2,000,000
1,990,000
2,017,500
27,500
Kronos Incorporated Services: Business
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.000%, 1.000% Floor
11/1/2023 3,000,000
2,985,000
3,035,160
50,160
Kronos Incorporated Services: Business
Senior Secured Second Lien Term Loans⁽⁷⁾ LIBOR + 8.250%, 1.000% Floor
11/1/2024 2,000,000
1,980,000
2,058,760
78,760
Lightstone HoldCo LLC Utilities: Electric
Senior Secured First Lien Term Loans⁽³⁾ LIBOR + 5.500%, 1.000% Floor
1/30/2024 2,739,130
2,684,348
2,769,946
85,598
Lightstone HoldCo LLC Utilities: Electric
Senior Secured First Lien Term Loans⁽³⁾ LIBOR + 5.500%, 1.000% Floor
1/30/2024 260,870
255,652
263,804
8,152
Livingston International, Inc. Transportation: Cargo
Senior Secured Second Lien Term Loans⁽⁴⁾⁽⁷⁾ LIBOR + 8.250%, 1.250% Floor
4/17/2020 1,954,783
1,969,443
1,862,321
(107,122 )
MPH Acquisition Holdings LLC Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.000%, 1.000% Floor
6/7/2023 2,870,317
2,855,965
2,917,993
62,028
MWI Holdings, Inc. Capital Equipment
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 5.500%, 1.000% Floor
6/29/2020 3,990,000
3,950,100
3,980,025
29,925
Nine West Holdings, Inc. Consumer goods: Non-durable
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 3.750%, 1.000% Floor
10/8/2019 5,865,000
5,850,338
3,606,975
(2,243,363 )
O2 Partners, LLC Consumer goods: Non-durable
Senior Secured First Lien Term Loans⁽⁶⁾ LIBOR + 5.000%, 1.000% Floor
10/7/2022 1,500,000
1,485,000
1,485,000
—
Payless Inc. Retail
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.000%, 1.000% Floor
3/11/2021 5,850,000
5,828,063
3,017,606
(2,810,457 )
Petco Animal Supplies, Inc. Retail
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.000%, 1.000% Floor
1/26/2023 5,940,050
5,821,249
5,965,533
144,284
Polycom, Inc. Wholesale
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 6.500%, 1.000% Floor
9/27/2023 1,946,667
1,868,800
1,953,967
85,167
Preferred Proppants, LLC Construction & Building
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 5.750%, 1.000% Floor
7/27/2020 2,870,178
2,841,476
2,421,713
(419,763 )
Press Ganey Holdings, Inc. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loans⁽⁵⁾ LIBOR + 3.250%, 1.000% Floor
10/23/2023 3,000,000
2,985,000
3,015,000
30,000
Press Ganey Holdings, Inc. Healthcare & Pharmaceuticals
Senior Secured Second Lien Term Loans⁽⁵⁾ LIBOR + 7.250%, 1.000% Floor
10/21/2024 6,500,000
6,472,500
6,472,505
5
Rackspace Hosting, Inc. Services: Business
Senior Secured First Lien Term Loans⁽³⁾ LIBOR + 3.500%, 1.000% Floor
11/3/2023 1,000,000
1,000,000
1,000,000
—
Rackspace Hosting, Inc. Services: Business
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.000%, 1.000% Floor
11/3/2023 2,500,000
2,487,500
2,530,200
42,700
SCS Holdings I Inc. High Tech Industries
Senior Secured First Lien Term Loans⁽⁵⁾ LIBOR + 4.250%, 1.000% Floor
10/30/2022 1,500,000
1,496,250
1,496,250
—

Company⁽¹⁾
Industry Type of Investment Maturity Par Amount
Initial Notional
Cost⁽²⁾
Fair Value Unrealized Appreciation/(Depreciation)
Sungard Availability Services Capital Inc. Services: Business
Senior Secured First Lien Term Loans⁽⁵⁾ LIBOR + 5.000%, 1.000% Floor
4/1/2019 7,989,438
7,956,046
7,716,439
(239,607 )
TaxACT Inc. Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽⁵⁾ LIBOR + 6.000%, 1.000% Floor
1/3/2023 2,705,882
2,634,706
2,705,882
71,176
Tensar Corporation Capital Equipment
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.750%, 1.000% Floor
7/9/2021 11,574,536
11,458,791
10,417,083
(1,041,708 )
TravelCLICK, Inc Hotel, Gaming & Leisure
Senior Secured First Lien Term Loans⁽⁵⁾ LIBOR + 4.500%, 1.250% Floor
5/6/2021 4,732,805
4,685,477
4,738,721
53,244
tronc, Inc. Media: Advertising, Printing & Publishing
Senior Secured First Lien Term Loans⁽⁴⁾⁽⁵⁾ LIBOR + 4.750%, 1.000% Floor
8/4/2021 7,000,000
6,930,000
6,973,750
43,750
UFC Holdings, LLC Hotel, Gaming & Leisure
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.000%, 1.000% Floor
8/18/2023 1,000,000
995,000
1,012,000
17,000
UFC Holdings, LLC Hotel, Gaming & Leisure
Senior Secured Second Lien Term Loans⁽⁷⁾ LIBOR + 7.500%, 1.000% Floor
8/18/2024 500,000
495,000
513,125
18,125
US Shipping Partners LP Transportation: Cargo
Senior Secured First Lien Term Loans⁽⁵⁾ LIBOR + 4.250%, 1.000% Floor
6/26/2021 1,856,284
1,842,362
1,786,673
(55,689 )
VCVH Holding Corp. Healthcare & Pharmaceuticals
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 5.000%, 1.000% Floor
6/1/2023 997,500
987,525
987,525
—
Veresen Midstream Limited Partnership Energy: Oil & Gas
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.250%, 1.000% Floor
3/31/2022 2,992,405
2,956,197
3,009,851
53,654
Victory Capital Operating, LLC Banking, Finance, Insurance & Real Estate
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 7.500%, 1.000% Floor
10/29/2021 1,625,357
1,600,977
1,641,611
40,634
Vistra Operations Company LLC Energy: Electricity
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.000%, 1.000% Floor
8/4/2023 3,257,143
3,224,571
3,294,307
69,736
Vistra Operations Company LLC Energy: Electricity
Senior Secured First Lien Term Loans⁽⁷⁾ LIBOR + 4.000%, 1.000% Floor
8/4/2023 742,857
735,429
751,334
15,905
Vistra Operations Company LLC Energy: Electricity
Senior Secured First Lien Term Loans⁽³⁾⁽⁵⁾ LIBOR + 3.250%, 0.750% Floor
12/14/2023 1,500,000
1,496,250
1,518,750
22,500
Western Digital Corporation High Tech Industries
Senior Secured First Lien Term Loans⁽⁵⁾ LIBOR + 3.750%, 0.750% Floor
4/29/2023 3,192,000
3,148,110
3,223,920
75,810
YRC Worldwide Inc. Transportation: Cargo
Senior Secured First Lien Term loans⁽⁴⁾⁽⁷⁾ LIBOR + 7.000%, 1.000% Floor
2/13/2019 9,737,187
9,725,122
9,627,643
(97,479 )
Total $ 230,377,606
$ 227,513,681
$ 213,493,418
$ (14,020,263 )
Total accrued interest income, net of expenses 372,933
Total unrealized depreciation on total return swap $ (13,647,330 )

~~_____________________________~~


~~(1)~~	~~All investments are domiciled in the United States except for Livingston International, Inc., which is domiciled in Canada. All foreign investments are denominated in US Dollars.~~


~~(2)~~	~~Represents the initial amount of par of an investment in which the TRS is referenced.~~


~~(3)~~	~~The referenced asset or portion thereof is unsettled as of December 31, 2016.~~


~~(4)~~	~~The investment is not a qualifying asset under the 1940 Act.~~


~~(5)~~	The interest rate on these loans is subject to a base rate plus 1 Month (“1M”) LIBOR, which at December 31, 2016 was 0.77%. As the interest rate is subject to a minimum LIBOR floor, which was greater than the 1M LIBOR rate at December 31, 2016, the prevailing rate in effect at December 31, 2016 was the base rate plus the LIBOR floor.


~~(6)~~	The interest rate on these loans is subject to a base rate plus 2 Month (“2M”) LIBOR, which at December 31, 2016 was 0.82%. As the interest rate is subject to a minimum LIBOR floor, which was greater than the 2M LIBOR rate at December 31, 2016, the prevailing rate in effect at December 31, 2016 was the base rate plus the LIBOR floor.


~~(7)~~	The interest rate on these loans is subject to a base rate plus 3 Month (“3M”) LIBOR, which at December 31, 2016 was 1.00%. As the interest rate is subject to a minimum LIBOR floor, which was greater than the 3M LIBOR rate at December 31, 2016, the prevailing rate in effect at December 31, 2016 was the base rate plus the LIBOR floor.

~~Note 6.~~ Borrowings

The following table shows the Company's outstanding debt as of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016:~~2020:

	June 30, 2021						December 31, 2020
	Total		Balance		Unused		Total		Balance			Unused
	Commitment		Outstanding		Commitment		Commitment		Outstanding			Commitment
Alpine Credit Facility		124,200,000		124,200,000		—		180,000,000		145,000,000			35,000,000
Total before deferred financing costs		124,200,000		124,200,000		—		180,000,000		145,000,000			35,000,000
Unamortized deferred financing costs		—		—		—		—		(659,266	)		—
Total borrowings outstanding, net of deferred financing costs	$	124,200,000	$	124,200,000	$	—	$	180,000,000	$	144,340,734		$	35,000,000

September 30, 2017 December 31, 2016

Total
Commitment

Balance
Outstanding

Unused
Commitment

Total
Commitment

Balance
Outstanding

Unused
Commitment
ING Credit Facility $ 220,000,000
$ 180,000,000
$ 40,000,000
$ 175,000,000
$ 150,000,000
$ 25,000,000
Alpine Credit Facility 300,000,000
240,000,000
60,000,000
300,000,000
240,000,000
60,000,000
Total before deferred financing costs 520,000,000
420,000,000
100,000,000
475,000,000
390,000,000
85,000,000
Unamortized deferred financing costs —
(5,747,434 ) —
—
(4,340,533 ) —
Total borrowings outstanding, net $ 520,000,000
$ 414,252,566
$ 100,000,000
$ 475,000,000
$ 385,659,467
$ 85,000,000

As a BDC, the Company is ~~only~~generally allowed to employ leverage to the extent that its asset coverage, as defined in the 1940 Act, equals at least 200% (or 150% if certain requirements under the 1940 Act are met) after giving effect to such leverage. The amount of leverage that the Company employs at any time depends on its assessment of the market and other factors at the time of any proposed borrowing.

The fair value of the Company’s debt obligation is determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Company’s margin borrowings are estimated based upon market interest rates for its own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. The Company’s debt obligation is recorded at its carrying value, which approximates fair value.

ING Credit Facility

On August 12, 2016, the Company amended its existing senior secured syndicated revolving credit facility (the “ING Credit Facility”) as amended from time to time as described below) pursuant to a Senior Secured Revolving Credit Agreement (the “Revolving Credit Agreement”) as amended from time to time as described below) with certain lenders party thereto from time to time and ING Capital LLC, as administrative agent. The ING Credit Facility ~~matures on August 12, 2020 and is~~was secured by substantially all of the Company’s assets, subject to certain exclusions as further set forth in an Amended and Restated Guarantee, Pledge and Security Agreement (the “Security Agreement”) entered into in connection with the Revolving Credit Agreement, among the Company, the subsidiary guarantors party thereto, ING Capital LLC, as Administrative Agent, each Financial Agent and Designated Indebtedness Holder party thereto and ING Capital LLC, as Collateral Agent. The ING Credit Facility also ~~includes~~included usual and customary representations, covenants and events of default for senior secured revolving credit facilities of this nature.

On ~~February 13, 2015, commitments~~May 15, 2020, the Company entered into Amendment No. 4 to the ~~ING credit facility were expanded~~Revolving Credit Agreement to among other things, (i) shorten the maturity date from ~~$150,000,000~~March 31, 2021 to ~~$170,000.000. On August 12, 2016, commitments to~~September 30, 2020, (ii) accelerate the ~~ING credit facility were expanded from $170,000,000 to $175,000,000. On April 20, 2017, commitments to~~amortization of the ~~ING~~Revolving Credit ~~Facility were expanded from $175,000,000 to $220,000,000.~~

~~The ING Credit Facility allows~~Agreement, and (iii) provide for the prepayment of the outstanding loans under the Revolving Credit Agreement in an aggregate principal amount of not less than $20 million. On July 22, 2020, the Company at its option, to borrow money at a rate of either (i) an alternate base rate plus 1.50% per annum or (ii) LIBOR plus 2.50% per annum. The interest rate margins are subject to certain step-downs upon the satisfaction of certain conditions described inpaid all remaining outstanding obligations under the Revolving Credit Agreement. ~~The alternate base rate will be~~On July 31, 2020 (the “Termination Date”), the ~~greatest of (i)~~Company terminated the ~~U.S. Prime Rate set forth in~~commitments on the ~~Wall Street Journal, (ii) the federal funds effective rate plus 1/2 of 1%, and (iii) three month LIBOR plus 1.00%. As of September 30, 2017 and December 31, 2016, the commitment under the ING~~ Credit Facility was $220,000,000 and $175,000,000, respectively, and the ING Credit Facility includes an accordion feature that allows for potential future expansion of the ING Credit Facility up to a total of $500,000,000. Availability of loans under the ING Credit Facility is linked to the valuation of the collateral pursuant to a borrowing base mechanism.

Agreement.

The Company iswas also required to pay a commitment fee to the lenders based on the daily unused portion of the aggregate commitments under the ING Credit Facility. The commitment fee iswas (i) 1.50% if the used portion of the aggregate commitments is less than or equal to 40%, (ii) 0.75% if the used portion of the aggregate commitments is greater than 40% and less than or equal to 65% or (iii) 0.50% if the used portion of the aggregate commitments is greater than 65%. The ING Credit Facility ~~provides~~provided that the Company may use the proceeds of the ~~facility~~ING Credit Facility for general corporate purposes, including making investments in accordance with the Company’s investment objective and strategy.

Borrowings under the Revolving Credit Agreement ~~are~~were subject to, among other things, a minimum borrowing base. Substantially all of the Company’s assets ~~are~~were pledged as collateral under the Revolving Credit Agreement. The ING Credit Facility ~~requires~~required the Company to, among other things (i) make representations and warranties regarding the collateral as well the Company’s business and operations, (ii) agree to certain indemnification obligations, and (iii) agree to comply with various affirmative and negative covenants. The documents for the Revolving Credit Agreement also ~~include~~included default provisions, such as the failure to make timely payments under the Revolving Credit Agreement, the occurrence of a change in control, and the failure by the Company to materially perform under the operative agreements governing the Revolving Credit Agreement, which, if not complied with, could ~~accelerate~~have accelerated repayment under the Revolving Credit Agreement, thereby materially and adversely affecting the Company’s liquidity, financial condition and results of operations.

In connection with the security interest established under the Security Agreement, the Company, ING Capital LLC, in its capacity as collateral agent, and State Street Bank and Trust Company, in its capacity as the Company’s custodian, entered into a control agreement dated as of December 4, 2013, in order to, among other things, perfect the security interest granted pursuant to the Security Agreement in, and provide for control over, the related collateral.

As ~~of September 30, 2017 and December 31, 2016, the carrying amount~~a result of the ~~Company’s borrowings under the ING Credit Facility approximated their fair value. The fair value~~termination of the ~~Company’s debt obligation is determined in accordance with ASC 820, which defines fair value in terms~~Revolving Credit Agreement, the Security Agreement was terminated effective as of the ~~price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value~~Termination Date.

F-41

Table of the Company’s borrowing under the ING Credit Facility is estimated based upon market interest rates of the Company’s borrowing or entities with similar credit risk, adjusted for nonperformance risk, if any. As of September 30, 2017 and December 31, 2016, the ING Credit Facility would be deemed to be Level 3, as defined in Note 4.Contents

As of September 30, 2017 and December 31, 2016, $2,491,430 and $2,746,766, respectively, of financing costs related to the ING Credit Facility have been capitalized and are being amortized over the respective terms.

The following table shows additional information about the interest and financing costs related to the ING Credit Facility for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016:~~2020:

	For the Three Months Ended					For the Six Months Ended
	June 30, (unaudited)					June 30, (unaudited)
	2021		2020			2021			2020
Interest expense related to the ING Credit Facility	$	—	$	532,770		$	—		$	1,711,249
Financing expenses related to the ING Credit Facility		—		850,374			—			1,093,766
Total interest and financing expenses related to the ING Credit Facility	$	—	$	1,383,144		$	—		$	2,805,015
Weighted average outstanding debt balance of the ING Credit Facility	$	—	$	57,883,812		$	—		$	72,825,883
Weighted average interest rate of the ING Credit Facility (annualized)		N/A		3.7	%		0.0	%		4.6	%

For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
2017 2016 2017 2016
Interest expense related to the ING Credit Facility $ 1,621,142
$ 1,061,353
$ 4,086,172
$ 3,111,502
Financing expenses related to the ING Credit Facility 234,636
190,439
664,086
526,813
Total Interest and financing expenses related to the ING Credit Facility $ 1,855,778
$ 1,251,792
$ 4,750,258
$ 3,638,315

Weighted average outstanding debt balance of the ING Credit Facility $ 153,260,870
$ 120,163,043
$ 137,527,473
$ 113,576,642
Weighted average interest rate of the ING Credit Facility 4.1 % 3.3 % 3.9 % 3.4 %

Alpine Credit Facility

On September 29, 2017, the Company’s wholly-owned, special purpose financing subsidiary, Alpine, amended ~~it's~~its existing revolving credit facility (the “Alpine Credit Facility”) pursuant to an Amended and Restated Loan Agreement (the ~~“Amendment”~~“Loan Agreement”) with JPMorgan Chase Bank, National Association (“JPMorgan”), as administrative agent and lender, the Financing Providers from time to time party thereto, SIC Advisors, as the portfolio manager, and the Collateral Administrator, Collateral Agent and Securities Intermediary party ~~thereto (the “Loan Agreement”).~~thereto. The Loan Agreement was amended to, among other things, (i) extend the reinvestment period until December 29, 2020, (ii) extend the scheduled termination date until March 29, 2022, (iii) decrease the applicable margin for advances to 2.85% per annum and (iv) increase the compliance condition for net advances to 55% of net asset value. Alpine’s obligations to JPMorgan under the Alpine Credit Facility are secured by a first priority security interest in ~~substantially all~~a significant portion of the assets of Alpine, including its portfolio of loans. The obligations of Alpine under the Alpine Credit Facility are non-recourse to the Company.

On November 18, 2020, Alpine entered into Amendment No.1 to the Loan Agreement to, among other things, (i) extend the reinvestment period from December 29, 2020 to May 18, 2021, (ii) increase the applicable margin for advances from 2.85% to 3.10% per annum, (iii) reduce the amount of maximum borrowings in an aggregate principal amount from $300,000,000 to $180,000,000 on a committed basis, (iv) require the Company to maintain a minimum a cash balance of $20,000,000 in Alpine, and (v) decrease the compliance condition for net advances from 55% to 52.5% of net asset value. The maturity date under the Loan Agreement did not change and therefore any amounts borrowed, as well as all accrued and unpaid interest thereunder, will be due and payable on March 29, 2022. In connection with the Amendment, the Company repaid $35,000,000 of the outstanding balance under the Loan Agreement on November 18, 2020, reducing the outstanding balance from $180,000,000 to $145,000,000. The Alpine Credit Facility ~~provides~~ended its reinvestment period on May 18, 2021 and has entered its amortization period. As of June 30, 2021 and December 31, 2020, Alpine’s borrowings under the Alpine Credit Facility totaled $124,200,000 and $145,000,000, respectively, and were recorded as part of revolving credit facilities payable on our Consolidated Statements of Assets and Liabilities.

The Alpine Credit Facility provided for borrowings in an aggregate principal amount up to ~~$300,000,000~~$180,000,000 on a committed basis. Borrowings outstanding under the Alpine Credit Facility are subject to compliance with a NAV coverage ratio with respect to the current value of Alpine’s portfolio and various ~~eligibility~~portfolio criteria must be satisfied with respect to the initial acquisition of each loan in Alpine’s portfolio. Any amounts borrowed under the Alpine Credit Facility will mature, and all accrued and unpaid interest thereunder will be due and payable, on March 29, 2022.

satisfied.

Pricing under the Alpine Credit Facility for each one month calculation period is based on LIBOR for an interest period of one month, plus a spread of ~~2.85%~~3.10% per annum. If LIBOR is unavailable, pricing will be determined at the prime rate offered by JPMorgan or the federal funds effective rate, plus a spread of ~~2.85%~~3.10% per annum. Interest is payable monthly in arrears. ~~Alpine is also required to pay a commitment fee of 1.00% on the average daily unused amount of the financing commitments to the extent that $300,000,000 has not been borrowed.~~

Borrowings of Alpine are considered borrowings of the Company for purposes of complying with the asset coverage requirements under the 1940 Act, applicable to BDCs.

Pursuant to a Sale and Contribution Agreement entered into between the Company and Alpine (the “Sale Agreement”) in connection with the Alpine Credit Facility, the Company may sell loans or contribute cash or loans to Alpine from time to time and will retain a residual interest in any assets contributed through its ownership of Alpine or will receive fair market value for any assets sold to Alpine. In certain circumstances the Company may be required to repurchase certain loans sold to Alpine. In addition to the acquisition of loans pursuant to the Sale Agreement, Alpine may purchase additional assets from various sources. Alpine has appointed

SIC Advisors to manage its portfolio of assets pursuant to the terms of a Portfolio Management Agreement between SIC Advisors and Alpine.

As of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016,~~2020, the carrying amount of the Company’s borrowings under the Alpine Credit Facility approximated the fair value of the Company’s debt obligation. The fair value of the Company’s debt obligation is determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Company’s borrowings under the Alpine Credit Facility is estimated based upon market interest rates of the Company’s borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. As of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016,~~2020, certain unobservable inputs used to value the Alpine Credit Facility would be deemed to be Level 3, as defined in Note 4.

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As of ~~September 30, 2017 and~~ December 31, ~~2016, $3,256,004 and $1,593,767, respectively,~~2020, the financing costs of ~~financing costs~~$659,266 related to the Alpine Credit Facility ~~has been~~were capitalized and ~~is being~~ amortized over the respective ~~terms.~~term. The following table shows additional information about the interest and financing costs related to the Alpine Credit Facility for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016:~~2020:

	For the Three Months Ended						For the Six Months Ended
	June 30, (unaudited)						June 30, (unaudited)
	2021			2020			2021			2020
Interest expense related to the Alpine Credit Facility	$	1,168,413		$	1,827,672		$	2,425,516		$	4,451,565
Financing expenses related to the Alpine Credit Facility		229,310			244,124			659,266			486,023
Total Interest and financing expenses related to the Alpine Credit Facility	$	1,397,723		$	2,071,796		$	3,084,782		$	4,937,588
Weighted average outstanding debt balance of the Alpine Credit Facility	$	138,600,000		$	180,000,000		$	141,782,320		$	194,175,824
Weighted average interest rate of the Alpine Credit Facility (annualized)		3.3	%		4.0	%		3.4	%		4.5	%

For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
2017 2016 2017 2016
Interest expense related to the Alpine Credit Facility $ 2,813,570
$ 2,371,728
$ 8,091,502
$ 6,984,188
Financing expenses related to the Alpine Credit Facility 148,933
146,808
437,763
437,234
Total Interest and financing expenses related to the Alpine Credit Facility $ 2,962,503
$ 2,518,536
$ 8,529,265
$ 7,421,422

Weighted average outstanding debt balance of the Alpine Credit Facility $ 240,000,000
$ 240,000,000
$ 243,406,593
$ 240,000,000
Weighted average interest rate of the Alpine Credit Facility 4.6 % 3.8 % 4.4 % 3.8 %

Note 7.6. Agreements

Investment Advisory Agreement

On April 5, 2012, the Company entered into an investment advisory agreement (the “Investment Advisory Agreement”) with SIC Advisors to manage the Company’s investment activities. The Investment Advisory Agreement became effective as of April 17, 2012, the date that the Company met its minimum offering requirement. Pursuant to the 1940 Act, the initial term of the Investment Advisory Agreement was for two years from its effective ~~date, with one-year renewals subject~~date. Unless earlier terminated pursuant to ~~approval by~~its terms, the Investment Advisory Agreement will remain in effect from year-to-year thereafter if approved annually at an in-person meeting of the Company’s board of directors by a majority of ~~whom must be independent directors. On March 1, 2017,~~the directors who are not "interested persons" (as defined in Section 2(a)(19) of the 1940 Act) of the Company or the Adviser, and either the Company’s board of directors or the holders of a majority of the Company’s outstanding voting securities. Most recently, on April 15, 2021, the Company’s board of directors approved the renewal of the Investment Advisory Agreement for an additional one-year term, ~~at an in-person meeting.~~ which will expire on April 17, 2022.

Pursuant to the Investment Advisory Agreement, SIC Advisors implements the Company’s business strategy on a day-to-day basis and performs certain services for the Company, subject to oversight by the Company’s board of directors. SIC Advisors is responsible for, among other duties, determining investment criteria, sourcing, analyzing and executing investment transactions, asset sales, financings and performing asset management duties. Under the Investment Advisory Agreement, the Company has agreed to pay SIC Advisors a management fee for investment advisory and management services consisting of a base management fee and an incentive fee.

The base management fee is calculated at an annual rate of 1.75% of the Company’s gross assets payable quarterly in arrears. For purposes of calculating the base management fee, the term “gross assets” includes any assets acquired with the proceeds of leverage. ~~"Gross assets" also includes any cash collateral posted with respect to~~For the ~~TRS, adjusted for realized and unrealized appreciation. The~~first quarter of the Company’s operations, the base management fee was calculated based on the initial value of the Company’s gross assets. Subsequently, the base management fee is calculated based on the gross assets at the end of each completed calendar quarter. Base management fees for any partial quarter are appropriately ~~prorated.~~pro-rated. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, the Company recorded an expense for base management fees of ~~$5,378,233~~$3,025,363 and ~~$16,036,068,~~$6,091,760, respectively. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2020, the Company recorded an expense for base management fees of ~~$5,040,490~~$2,944,745 and ~~$14,790,696,~~$6,196,196, respectively. As of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016,~~2020, the Company recorded a base management fee payable of ~~$5,378,233~~$3,025,363 and ~~$5,138,107,~~$2,967,857, respectively.

The incentive fee consists of the following two parts:

An incentive fee on net investment income (“Subordinated Incentive Fee on Income”) is calculated and payable quarterly in arrears and is based upon pre-incentive fee net investment income for the immediately preceding quarter. No Subordinated Incentive Fee on Income is payable in any calendar quarter in which pre-incentive fee net investment income does not exceed a quarterly return to stockholders of 1.75% per quarter on the Company’s net assets at the end of the immediately preceding fiscal quarter (the “Preferred Quarterly Return”). All pre-incentive fee net investment income, if any, that exceeds the Preferred Quarterly Return, but is less than or equal to 2.1875% of net assets at the end of the immediately preceding fiscal quarter in any quarter, will be payable to SIC Advisors. The Company refers to this portion of its Subordinated Incentive Fee on Income as the “Catch Up”. It is intended to provide an

incentive fee of 20% on pre-incentive fee net investment income when pre-incentive fee net investment income exceeds 2.1875% of net assets at the end of the immediately preceding quarter in any quarter. For any quarter in which the Company’s pre-incentive fee net investment income exceeds 2.1875% of net assets at the end of the immediately preceding quarter, the Subordinated Incentive Fee on Income shall equal 20% of the amount of pre-incentive fee net investment income, because the Preferred Quarterly Return and Catch Up will have been achieved. ~~There is no incentive fee on net investment income earned on the TRS.~~

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Table of Contents

For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021 and 2020 the Company recorded ~~a Subordinated Incentive Fee on Income~~no incentive fees. As of ~~$1,323,999~~June 30, 2021 and ~~$1,872,805, respectively. For the three and nine months ended September 30, 2016,~~December 31, 2020, the Company recorded ~~a Subordinated Incentive Fee on Income of $2,372,355 and $7,876,060, respectively. As of September 30, 2017 and December 31, 2016, the Company recorded~~no incentive fees ~~payable of $1,323,999 and $1,405,419, respectively.~~

payable.

A capital gains incentive fee will be earned on realized investments and shall be payable in arrears as of the end of each calendar year during which the Investment Advisory Agreement is in effect. If the Investment Advisory Agreement is terminated, the incentive fee will also become payable as of the effective date of such termination. The incentive fee equals 20% of the realized capital gains, less the aggregate amount of any previously paid capital gains incentive fees. The incentive fee on capital gains is equal to realized capital gains on a cumulative basis from inception, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis.

Under GAAP, the Company calculates capital gains incentive fees as if the Company had realized all assets at their fair values and liabilities at their settlement amounts as of the reporting date. GAAP requires that the capital gains incentive fee accrual assume the cumulative aggregate unrealized capital appreciation is realized, even though such unrealized capital appreciation is not payable under the Investment Advisory Agreement. Accordingly, the Company accrues a provisional capital gains incentive fee taking into account any unrealized gains or losses. There can be no assurance that such unrealized capital appreciation will be realized in the future and that the provisional capital gains incentive fee will become payable.

On April 23, 2021, the Company entered into the Incentive Fee Waiver Agreement with SIC Advisors, pursuant to which SIC Advisors agreed to waive (i) 50% of any incentive fee on income payable to SIC Advisors for any fiscal quarter during the period beginning with the fiscal quarter ending September 30, 2021 and the fiscal quarter ending June 30, 2022, and (ii) 50% of any incentive fee on capital gains payable to SIC Advisors for the fiscal year ending December 31, 2021. For the avoidance of doubt, the Incentive Fee Waiver Agreement does not amend the calculation of the incentive fees as set forth in the Investment Advisory Agreement. Other than the waiver contemplated by the Incentive Fee Waiver Agreement, the terms of the Investment Advisory Agreement will remain in full force and effect. Following (i) the fiscal quarter ending June 30, 2022 with respect to the waiver granted by SIC Advisors on any incentive fee payable on income, and (ii) the fiscal year ending December 31, 2021 with respect to the waiver granted by SIC Advisors on any incentive fee payable on capital gains, unless otherwise extended by the Company and SIC Advisors, the Incentive Fee Waiver Agreement will terminate and the original terms of the Investment Advisory Agreement will be in full force and effect.

For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016,~~2020, the Company recorded no capital gains incentive ~~fee.~~fees. As of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016,~~2020, the Company recorded no capital gains incentive ~~fee~~fees payable.

In the event that other organizational and offering expenses exceed 5.25% of the gross proceeds from the sale of shares of the Company’s common stock pursuant to its public offering or one or more private offerings at the time of the completion of the offering or other organizational and offering expenses, together with selling commissions, dealer manager fees and any discounts paid to members of the Financial Industry Regulatory Authority, exceed 15% of the gross proceeds from the sale of shares of the Company’s common stock pursuant to its public offering or one or more private offerings at the time of the completion of the offering, then SIC Advisors shall be required to pay without reimbursement from the Company, or, if already paid by the Company, reimburse the Company, for amounts exceeding such 5.25% and 15% limit, as appropriate.

Administration Agreement

On April 5, 2012, the Company entered into an administration agreement (the “Administration Agreement”) with Medley Capital LLC, pursuant to which Medley Capital LLC furnishes the Company with administrative services necessary to conduct its day-to-day operations. On February 28, 2013, Medley Capital LLC entered into a Sub-Administration Agreement with State Street Bank Global Fund Accounting and Custody to perform certain financial, accounting, administrative and other services on behalf of the Company. On March 1, 2017, the Company’s board of directors approved the renewal of the Administration Agreement for an additional one-year term at an in-person meeting. Medley Capital LLC is reimbursed for administrative expenses it incurs on the Company’s behalf in performing its obligations. Such costs are reasonably allocated to the Company on the basis of assets, revenues, time records or other reasonable methods. The Company does not reimburse Medley Capital LLC for any services for which it receives a separate fee or for rent, depreciation, utilities, capital equipment or other administrative items allocated to a controlling person of Medley Capital LLC. Pursuant to the 1940 Act, the Administration Agreement remained in effect for an initial period of two years from its effective date. The Administration Agreement became effective on April 17, 2012, the date that we met our minimum offering requirement. Pursuant to its terms, and unless earlier terminated as described below, the Administration Agreement will remain in effect from year-to-year if approved annually by a majority of our directors who are not "interested persons" (as defined in Section 2(a)(19) of the 1940 Act) of the Company or Medley Capital LLC, and either the holders of a majority of our outstanding voting securities or our board of directors. Most recently, on April 15, 2021, the Company’s board of directors approved the renewal of the Administration Agreement for an additional one-year term, which will expire on April 17, 2022.

On April 23, 2021, the Company entered into the Expense Limitation Agreement with Medley Capital LLC, the Company’s administrator, pursuant to which, Medley Capital LLC agreed that the amount of expenses payable and reimbursable by the Company under the Administration Agreement will be capped at $2.2 million for the fiscal year ending December 31, 2021. For the avoidance of doubt, other than the cap contemplated by the Expense Limitation Agreement, the Expense Limitation Agreement does not amend the allocation of costs and expenses that are payable or reimbursable by the Company under the Administration Agreement. Following the quarter ending December 31, 2021, unless otherwise extended by the Company and Medley Capital LLC, the Expense Limitation Agreement will terminate and the original terms of the Administration Agreement will be in full force and effect.

On February 28, 2013, Medley Capital LLC entered into a Sub-Administration Agreement with State Street Bank Global Fund Accounting and Custody to perform certain financial, accounting, administrative and other services on behalf of the Company. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, the Company recorded administrator expenses of ~~$745,817~~$582,279 and ~~$2,333,968,~~$1,225,899, respectively. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2020, the Company recorded administrator expenses of ~~$780,166~~$669,025 and ~~$1,997,067,~~$1,390,657, respectively. As of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016,~~2020, the Company had ~~$745,817 and $850,678, respectively, in~~ administrator fees ~~payable.~~payable of $549,544 and $401,260, respectively.

~~Expense Support and Reimbursement Agreement~~

~~From June 29, 2012 through December 31, 2016, the Company was party to~~

Note 7. Related Party Transactions

We have entered into an ~~Expense Support and Reimbursement~~Investment Advisory Agreement with SIC Advisors ~~(the “Expense Support Agreement”). During~~in which our senior management holds an equity interest and are party to the ~~term of the Expense Support~~Incentive Fee Waiver Agreement with SIC Advisors reimbursed the Company for operating expenses in an amount equal to the difference between the Company’s distributions paid to its stockholders in each month, less the sum of the Company’s net investment income, net realized capital gains(as described and dividends paid to the Company from its portfolio companies, not included in net income and net realized capital gains, during such period (“Expense Support Reimbursement”). To the extent that no dividends or other distributions were paid to the Company’s stockholders in any given month, then the Expense Support Reimbursement for such month was equal to such amount necessary in order for available operating funds for the ~~month to equal zero. From April 1, 2016 until the expiration~~periods set forth in Note 6). Members of ~~the Expense Support Agreement on December 31, 2016, SIC Advisors made expense support payments on a discretionary basis by making an election on the last day~~our senior management also serve as principals of ~~each month to fund an~~

~~expense support payment in an amount equal to the difference between the Company’s distributions paid to stockholders during such month less the sum of the Company’s net~~other investment ~~income, net realized capital gains and dividends paid to the Company from its portfolio companies, not included in net income and net realized capital gains during such period.~~

The purpose of the Expense Support Agreement was to cover distributions to stockholders so as to ensure that the distributions did not constitute a return of capital for GAAP purposes and to reduce operating expenses until the Company had raised sufficient capital to be able to absorb such expenses. The Expense Support Agreement expired on December 31, 2016.

Pursuant to the Expense Support Agreement, the Company will reimburse SIC Advisors for expense support payments it previously made following any calendar quarter for which the Company received net investment income, net realized capital gains and dividends from its portfolio companies (not included in net income and net realized capital gains) in excess of the distributions paid to the Company’s stockholders during such calendar quarter (the “Excess Operating Funds”). Any such reimbursement will be made within three years of the date that the expense support payment obligation was incurred by SIC Advisors, subject to the conditions described below. The amount of the reimbursement during any calendar quarter will equal the lesser of (i) the Excess Operating Funds received during the quarter and (ii) the aggregate amount of all expense payments made bymanagers affiliated with SIC Advisors that do, and may in the future, manage investment funds, accounts or other investment vehicles with investment objectives similar to ours.

We have entered into an Administration Agreement with Medley Capital LLC, pursuant to which Medley Capital LLC furnishes us with administrative services necessary to conduct our day-to-day operations. Medley Capital LLC is reimbursed for administrative expenses it incurs on our behalf. We do not ~~yet been reimbursed.~~reimburse Medley Capital LLC for any services for which it receives a separate fee or for rent, depreciation, utilities, capital equipment or other administrative items allocated to a controlling person of Medley Capital LLC. Medley Capital LLC is an affiliate of SIC Advisors. In addition, we entered in the ~~Company will only make reimbursement payments to the extent its current annualized “operating expense ratio”~~Expense Limitation Agreement with Medley Capital LLC (as described ~~in footnote 1 to the table below) is equal to or less than its operating expense ratio~~and for the ~~quarter during which the corresponding expense obligation was incurred and to the extent the annualized rate~~period set forth in Note 6).

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Table of its regular cash dividends to the Company’s stockholders for the month is equal to or greater than the annualized rate of the Company’s regular cash distributions to stockholders for the month during which the corresponding expense payment was incurred.

For the three and nine months ended September 30, 2017, the Company recorded no Expense Support Reimbursements on the consolidated statements of operations. For the three and nine months ended September 30, 2016, the Company recorded net Expense Support Reimbursements of $5,389,627 and $16,093,129, respectively, on the consolidated statements of operations. Repayments of amounts paid by SIC Advisors to the Company under the Expense Support Agreement will be accrued as they become probable and estimable. As of September 30, 2017 and December 31, 2016, the Company recorded $0 and $7,892,273, respectively, in its consolidated statements of assets and liabilities as due from affiliate relating to the Expense Support Agreement. The Company refers to Expense Support Reimbursements that are eligible for reimbursement to SIC Advisors by virtue of having satisfied the conditions described above as a “Crystalized Reimbursement.” As of September 30, 2017 and December 31, 2016, the Company recorded $0 and $135,784, respectively, of Crystalized Reimbursements, and $0 and $135,784 was included in Due to Affiliate on the respective consolidated statements of assets and liabilities. As of September 30, 2017 and December 31, 2016, the total amounts eligible for reimbursement of the Company to SIC Advisors, net of Crystalized Reimbursements was $26,559,011 and $31,474,331, respectively.

The following table provides information regarding liabilities incurred by SIC Advisors pursuant to the Expense Support Agreement as well as other information relating to the Company’s ability to reimburse SIC Advisors for such payments:

Contents

Quarter Ended Amount of Expense Payment Obligation Amount Repaid to SIC Advisors
Operating Expense Ratio⁽¹⁾

Annualized Distribution Rate⁽²⁾

Eligible to be
Repaid Through
June 30, 2012 $ 454,874
$ 454,874
6.13 % 8.00 % June 30, 2015
September 30, 2012 437,303
437,303
4.05 % 8.00 % September 30, 2015
December 31, 2012 573,733
573,733
3.91 % 8.00 % December 31, 2015
March 31, 2013 685,404
685,404
1.71 % 8.00 % March 31, 2016
June 30, 2013 732,425
732,425
1.00 % 7.84 % June 30, 2016
September 30, 2013⁽³⁾
1,262,848
1,078,500
0.83 % 7.84 % September 30, 2016
December 31, 2013⁽³⁾
1,258,575
—
0.45 % 7.84 % December 31, 2016
March 31, 2014⁽³⁾
1,177,686
135,784
0.45 % 7.80 % March 31, 2017
June 30, 2014⁽³⁾
2,143,066
—
0.38 % 7.80 % June 30, 2017
September 30, 2014⁽³⁾
1,717,593
123,025
0.38 % 7.77 % September 30, 2017
December 31, 2014 1,585,471
—
0.47 % 8.00 % December 31, 2017
March 31, 2015 1,993,518
—
0.43 % 8.00 % March 31, 2018
June 30, 2015 2,148,462
—
0.31 % 8.00 % June 30, 2018
September 30, 2015 627,752
—
0.32 % 8.25 % September 30, 2018
December 31, 2015 3,974,895
—
0.40 % 8.65 % December 31, 2018
March 31, 2016 5,204,896
—
0.37 % 8.89 % March 31, 2019
June 30, 2016 5,634,390
—
0.29 % 8.89 % June 30, 2019
September 30, 2016 5,389,627
—
0.45 % 8.84 % September 30, 2019

~~_____________________________~~


~~(1)~~	“Operating Expense Ratio” is as of the date the expense support payment obligation was incurred by the Company’s Advisor and includes all expenses borne by the Company, except for organizational and offering expenses, base management and incentive fees owed to SIC Advisors, and interest expense, as a percentage of net assets.


~~(2)~~	“Annualized Distribution Rate” equals the annualized rate of distributions paid to stockholders based on the amount of the regular cash distribution paid immediately prior to the date the expense support payment obligation was incurred by SIC Advisors. “Annualized Distribution Rate” does not include special cash or stock distributions paid to stockholders.


~~(3)~~	~~The unreimbursed part of the expense payment obligation has expired as of September 30, 2017.~~

~~Note 8. Related Party Transactions~~

~~On October 19, 2011, SIC Advisors~~

We have entered into a ~~subscription~~license agreement ~~to purchase 110.80 shares of common stock for cash consideration of $1,000. The consideration represents $9.025 per share.~~

~~On March 31, 2012,~~with SIC Advisors entered into a subscription agreement to purchase 1,108,033.24 shares of common stock for cash consideration of $10,000,000. The purchase was made on April 17, 2012. The consideration represents $9.025 per share.

~~Due from affiliate relates to amounts due from~~under which SIC Advisors ~~pursuant~~has agreed to grant us a non-exclusive, royalty-free license to use the name “Sierra” for specified purposes in our business. Under this license agreement, we will have a right to use the “Sierra” name, subject to certain conditions, for so long as SIC Advisors or one of its affiliates remains our investment adviser. Other than with respect to this limited license, we will have no legal right to the ~~Expense Support Agreement as discussed in Note 7. Due to affiliate relates to reimbursements of expense support reimbursement~~ ~~pursuant~~ ~~to the Investment Advisory Agreement paid to/from SIC Advisors as discussed in Note 7.~~

~~An affiliate of the Company’s dealer manager has an ownership interest in SIC Advisors.~~

“Sierra” name.

Opportunities for co-investments may arise when SIC Advisors or an affiliated adviser becomes aware of investment opportunities that may be appropriate for the Company and other clients or affiliated funds. The Company obtained an exemptive order from the SEC on November 25, 2013 (the “Prior Exemptive Order”). On March 29, 2017, the Company, SIC Advisors and certain other affiliated funds and investment advisers received an exemptive order (the "Exemptive Order") that supersedes the Prior Exemptive Order and allows affiliated registered investment companies to participate in co-investment transactions with us that would otherwise have been prohibited under Section 17(d) and 57(a)(4) and Rule 17d-1. The terms of the Exemptive Order are otherwise substantially similar to the Prior Exemptive Order. Co-investment under the Exemptive Order is subject to certain conditions, including the condition that, in the case of each co-investment transaction, our board of directors determines that it would to be in our best interest to participate in the transaction. However, neither we nor the affiliated funds are obligated to invest or co-invest when investment opportunities are referred to us or them. On ~~May 24,~~October 4, 2017, the Company, SIC Advisors and certain of our affiliates ~~filed~~received an exemptive ~~application for a co-investment~~ order that ~~would supersede~~supersedes the Exemptive Order (the ~~“New~~“Current Exemptive Order”) and ~~would allow,~~allows, in addition to the entities already covered by the Exemptive Order, Medley LLC and its subsidiary, Medley Capital LLC, to the extent they hold financial assets in a principal capacity, and any direct or indirect, wholly- or majority-owned subsidiary of Medley LLC that is formed in the future, to participate in co-investment transactions with us that would otherwise be prohibited by either or both of Sections 17(d) and 57(a)(4) of the 1940 Act. ~~There can be no assurance if and when we will receive~~Co-investment under the ~~Exemptive Order. The Exemptive Order will remain in effect unless and until the New~~Current Exemptive Order is ~~granted by~~subject to certain conditions therein, including the ~~SEC. The terms~~condition that, in the case of each co-investment transaction, the ~~New Exemptive Order, if received,~~board of directors determines that it would be ~~substantially similar~~in the Company’s best interest to participate in the ~~Exemptive Order.~~

~~Please see footnote 4~~transaction. However, neither we nor the affiliated funds are obligated to invest or co-invest when investment opportunities are referred to us or them. See the footnotes to the consolidated schedule of investments as of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016~~2020 for disclosures regarding securities also held by affiliated funds.

Note 9.8. Directors Fees

Effective January 1, 2017, each independent director will be compensated as follows: (i) an annual retainer of $85,000; (ii) a fee of $3,000 for each in-person board meeting in which they participate; (iii) a fee of $1,000 for each telephonic board meeting in which they participate; (iv) a fee of $2,500 for each in-person audit committee meeting in which they participate; (v) a fee $1,000 for each telephonic audit committee meeting in which they participate; (vi) a fee of $2,000 for each in-person nominating and corporate governance committee meeting in which they participate; and (vii) a fee of $1,000 for each telephonic nominating and corporate governance committee meeting in which they participate. In addition, each independent director will be reimbursed for reasonable and documented out-of-pocket expenses incurred in connection with attending each board or committee meeting. In addition, the Chair of the audit committee receives an annual retainer of $15,000, while the Chair of any other committee receives an annual retainer of $5,000. The Lead Independent Director receives an annual retainer of $10,000.

Prior to January 1, 2017, each independent director received an annual retainer fee of $50,000, and further received a fee of $4,000 ($2,000 for telephonic attendance) for each regularly scheduled board meeting attended, a fee of $2,000 for each special board meeting and all committee meetings attended, as well as reimbursement of reasonable and documented out-of-pocket expenses incurred in connection with attending each board or committee meeting.

For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, the Company recorded directors' fees expenses in General and Administrative expenses on the ~~consolidated statement~~Consolidated Statement of ~~operations~~Operations of ~~$89,750~~$343,326 and ~~$299,750,~~686,826, respectively. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2020, the Company recorded directors' fees expenses in General and Administrative expenses on the ~~consolidated statements~~Consolidated Statement of ~~operations~~Operations of ~~$66,500~~$271,250 and ~~$218,472,~~539,375, respectively.

Note ~~10.~~9. Earnings Per Share

In accordance with the provisions of ASC Topic 260 - Earnings per Share, basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis.

The following table sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016:~~2020:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Net increase/(decrease) in net assets from operations	$	18,412,851	$	8,676,902	$	37,251,098	$	110,564,104
Weighted average common shares outstanding		102,380,357		102,856,314		102,575,026		102,785,734
Weighted average basic and diluted earnings/(loss) per common share	$	0.18	$	0.08	$	0.36	$	(1.08	)

For the Three Months Ended September 30, For the Nine Months Ended September 30,
2017 2016 2017 2016
Net increase in net assets from operations $ 3,388,374
$ 20,834,572
$ 19,984,135
$ 51,830,080
Weighted average common shares outstanding 96,474,233
92,516,572
96,078,793
89,015,100
Weighted average basic and diluted earnings per common share $ 0.04
$ 0.23
$ 0.21
$ 0.58

Note ~~11.~~10. Commitments

As of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016,~~2020, the Company had ~~$50,564,113~~$22,785,759 and ~~$26,944,304,~~$17,393,369, respectively, of unfunded commitments under loan and financing agreements. These amounts are primarily composed of commitments for senior secured term loans, revolvers, and additional capital contributions for the Sierra JV. The unrealized gain or loss associated with unfunded commitments is recorded in the financial statements and reflected as an adjustment to the valuation of the related security in the Consolidated Schedule of Investments. The par amount of the unfunded commitments are not recognized by the Company until the commitment is funded.

	As of
	June 30, 2021		December 31, 2020
1888 Industrial Services, LLC	$	376,856	$	376,856
Alpine SG, LLC		1,000,000		—
Black Angus Steakhouses, LLC		416,667		1,111,111
DataOnline Corp.		321,429		321,429
Isola USA Corp.		1,138,277		1,138,277
Kemmerer Operations LLC		908,475		908,475
Lifestyle Intermediate II, LLC		1,833,333		—
RA Outdoors, LLC		1,234,568		—
Redwood Services Group, LLC		—		2,587,500
RTIC Subsidiary Holdings, LLC		3,174,603		3,174,603
SFP Holdings, Inc.		3,000,000		3,081,900
Simplified Logistics, LLC		3,533,333		—
Thermacell Repellents, Inc.		1,155,000		—
West Dermatology, LLC		4,693,218		4,693,218
Total Commitments	$	22,785,759	$	17,393,369

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As of
September 30, 2017 December 31, 2016
AAAHI Acquisition Corporation $ 1,917,757
$ 2,219,626
AAR Intermediate Holdings, LLC 628,896
477,961
Barrys Bootcamp Holdings, LLC 7,028,571
—
Black Angus Steakhouses LLC 3,523,387
3,794,643
Central States Dermatology Services, LLC 583,514
—
CP Opco, LLC 348,265
9,291
Elite Comfort Solutions LLC 3,238,955
4,438,616
Engineered Machinery Holdings, Inc. 210,638
—
First Boston Construction Holdings, LLC —
600,000
Impact Sales, LLC 1,347,656
1,562,500
IOP Monroe Acquisition, Inc. 2,500,000
—
Nuspire, LLC 2,500,000
2,500,000
PT Network, LLC 3,182,083
4,166,667
SavATree, LLC 361,111
—
SFP Holdings, Inc. 3,722,222
—
Sierra Senior Loan Strategy JV I LLC 7,700,000
875,000
SMART Financial Operations, LLC 6,300,000
6,300,000
SRS Software, LLC 5,000,000
—
TwentyEighty, Inc. 471,058
—
Total Commitments $ 50,564,113
$ 26,944,304

Note ~~12.~~11. Fee Income

Fee income consists of origination fees, amendment fees, prepayment fees, administrative agent ~~fees, transaction break-up~~ fees and other miscellaneous fees. Origination fees, prepayment fees, amendment fees, and other similar fees are non-recurring fee sources. Such fees are received on a transaction by transaction basis and do not constitute a regular stream of income. The following table shows the Company’s fee income for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016:~~2020:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Origination fees	$	229,613	$	79,957	$	425,549	$	162,336
Amendment fees		175,264		218,588		309,034		235,431
Administrative agent fees		4,847		7,213		17,819		22,513
Other fees		—		7,177		14,080		14,353
Fee income	$	409,724	$	312,935	$	766,482	$	434,633

For the Three Months Ended September 30, For the Nine Months Ended September 30,
2017 2016 2017 2016
Origination fee $ 754,118
$ 787,985
$ 2,611,500
$ 1,693,342
Prepayment fee 50,000
1,290,750
489,434
2,548,396
Amendment fee 395,593
273,566
849,730
774,628
Administrative agent fee 28,420
47,721
100,539
47,721
Other fees —
64,012
17,092
93,700
Fee income $ 1,228,131
$ 2,464,034
$ 4,068,295
$ 5,157,787

Note ~~13.~~12. Distributions and Share Repurchase Program ~~Distributions~~

Distributions to common stockholders are recorded on the ex-dividend date. The amount to be paid out as a distribution is determined by the Company’s board of directors.

The Company has adopted an “opt in” distribution reinvestment plan (“DRIP”) pursuant to which the Company’s ~~common~~ stockholders may elect to have the full amount of any cash distributions reinvested in additional shares of the Company’s common stock. On June 30, 2017, the Board approved an amendment to the DRIP, pursuant to which the number of newly-issued shares of the Company’s common stock to be issued to a participating stockholder shall be determined by dividing the total dollar amount of the distribution payable to such stockholder by a price equal to 94.5%, rather than 90%, of the Company’s then current offering price. The Company amended the DRIP as a result of the Company’s ~~recently~~ revised fee structure relating to the Company's offering of shares of common stock, which went into effect on June 16, 2017. Under the Company’s ~~new~~revised fee structure the upfront selling commission was reduced from 7.00% of gross proceeds to up to 3.00% of gross proceeds and the dealer manager fee was reduced from 2.75% of gross proceeds to up to 2.50% of gross proceeds. ~~As a result, if~~If the Company declares a cash dividend or other distribution, each stockholder that has “opted in” to the ~~Company’s reinvestment plan~~DRIP will have their distributions automatically reinvested in additional shares of the Company’s common stock rather than receiving cash distributions. Stockholders who receive distributions in the form of shares of common stock will be subject to the same federal, state and local tax consequences as if they received cash distributions.

For the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, the Company distributed a total of ~~$46,082,836,~~$6,155,065, of which ~~$25,118,175~~$4,112,488 was in cash and ~~$20,964,661~~$2,042,577 was in the form of common stock associated with the DRIP. For the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2020, the Company distributed a total of ~~$53,464,883,~~$10,707,406, of which ~~$28,108,664,~~$6,864,275, was in cash and ~~$25,356,219~~$3,843,131 was in the form of common stock ~~associated with~~issued under the DRIP.

The following table reflects the cash distributions per share that the Company has declared or paid to its stockholders ~~for the current~~during 2021 and ~~prior fiscal years.~~2020. Stockholders of record as of each respective record date were entitled to receive the distribution.

Record Date	Payment Date	Amount per share
January 30, 2020	January 31, 2020	$	0.03500
February 27, 2020	February 28, 2020		0.03500
March 30, 2020	March 31, 2020		0.03500
October 29, 2020	October 30, 2020		0.01000
November 27, 2020	November 30, 2020		0.01000
December 30, 2020	December 31, 2020		0.01000
January 28, 2021	January 29, 2021		0.01000
February 25, 2021	February 26, 2021		0.01000
March 30, 2021	March 31, 2021		0.01000
April 29, 2021	April 30, 2021		0.01000
May 28, 2021	May 31, 2021		0.01000
June 29, 2021	June 30, 2021		0.01000

Record Date Payment Date Amount per share
January 15 and 29, 2016 January 29, 2016 $ 0.03333
February 12 and 29, 2016 February 29, 2016 0.03333
March 15 and 31, 2016 March 31, 2016 0.03333
April 15 and 29, 2016 April 29, 2016 0.03333
May 13 and 31, 2016 May 31, 2016 0.03333
June 15 and 30, 2016 June 30, 2016 0.03333
July 15 and 29, 2016 July 29, 2016 0.03333
August 15 and 31, 2016 August 31, 2016 0.03333
September 15 and 30, 2016 September 30, 2016 0.03333
October 14 and 31, 2016 October 31, 2016 0.02667
November 15 and 30, 2016 November 30, 2016 0.02667
December 15 and 30, 2016 December 31, 2016 0.02667
January 13 and 31, 2017 January 31, 2017 0.02667
February 15 and 28, 2017 February 28, 2017 0.02667
March 15 and 31, 2017 March 31, 2017 0.02667
April 14 and 28, 2017 April 28, 2017 0.02667
May 15 and 31, 2017 May 31, 2017 0.02667
June 15 and 30, 2017 June 30, 2017 0.02667
July 14 and 31, 2017 July 31, 2017 0.02667
August 15 and 31, 2017 August 31, 2017 0.02667
September 15 and 29, 2017 September 29, 2017 0.02667

The Company’s distributions may be funded from ~~offering proceeds or~~ borrowings, which may constitute a return of capital and reduce the amount of capital available to the Company for ~~investment.~~investment, and historically may have been funded from offering proceeds or borrowings. Any capital returned to stockholders through distributions will be distributed after payment of fees and expenses.

During the term of the Expense Support and Reimbursement Agreement with SIC Advisors (which expired on December 31, 2016), SIC Advisors reimbursed the Company for operating expenses in an amount equal to the difference between the Company’s distributions paid to its stockholders in each month, less the sum of the Company’s net investment income, net realized capital gains and dividends paid to the Company from its portfolio companies, not included in net income and net realized capital gains, during such period (“Expense Support Reimbursement”). The Company’s previous distributions to stockholders may have been funded from temporary Expense Support Reimbursements that may behave been subject to repayment to SIC Advisors. The portion of these distributions derived from temporary Expense Support Reimbursements were not based on the Company's investment performance and may not continue in the future. If SIC Advisors had not agreed to make Expense Support Reimbursements, these distributions would have come from paid-in-capital. The repayments of eligible reimbursements owed to SIC Advisors will reduce the future distributions to which stockholders would otherwise be entitled. The Expense Support Agreement expired on December 31, 2016. The Company's contingent obligation to repay eligible reimbursements to SIC Advisors ~~will expire~~expired on September 30, 2019. ~~See Note 7 for more information.~~

The determination of the tax attributes (i.e., paid from ordinary income, paid from net capital gains on the sale of securities, and/or a return of paid-in-capital surplus which is a nontaxable distribution) of distributions is made annually as of the end of the Company’s fiscal year based upon its taxable income earned and distributions paid during the fiscal year.

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Share Repurchase Program

In June 2013, the Company commenced a share repurchase program pursuant to which it ~~intends to conduct~~conducted quarterly share repurchases of up to 2.5% of the weighted average number of outstanding shares of its common stock in the prior four calendar quarters or 10% of the weighted average number of outstanding shares in the prior 12-month period. In connection with the previously proposed mergers of the Company, MDLY, and Medley Capital Corporation, the Company suspended the Share Repurchase Program. The purpose of the share repurchase program iswas to allow stockholders to sell their shares back to the Company at a price equal to the most recently disclosed NAV per share of the Company's common stock immediately prior to the date of repurchase. Shares ~~will be~~were purchased from stockholders participating in the program on a ~~pro rata~~pro-rata basis. Unless the Company's board of directors ~~determines~~determined otherwise, the number of shares ~~to be~~ repurchased during any calendar year ~~will be~~were limited to the proceeds received in association with the sale of shares of common stock under the ~~distribution reinvestment plan.~~

~~The following table reflects activity under~~DRIP.

Notwithstanding the ~~Company’s Share Repurchase Program:~~

Offer Date Quantity Offered Price per Share Repurchase Date Repurchase Quantity
6/4/2013 16,652
$ 9.18
—
—
8/8/2013 32,627
9.13
9/27/2013
3,642
11/7/2013 60,966
9.14
12/19/2013
5,826
3/12/2014 120,816
9.18
4/25/2014
9,835
5/6/2014 199,476
9.20
6/13/2014
17,777
8/5/2014 294,068
9.25
9/12/2014
35,887
11/5/2014 411,894
9.22
12/24/2014
411,894
3/4/2015 535,571
8.97
4/24/2015
68,472
5/6/2015 620,420
8.98
6/24/2015
90,916
8/5/2015 727,654
8.96
9/29/2015
328,353
11/3/2015 853,688
8.56
12/23/2015
285,559
3/2/2016 959,436
8.16
4/29/2016
959,436
5/5/2016 1,005,447
8.04
6/30/2016
855,215
8/4/2016 1,048,412
8.11
9/28/2016
1,048,407
11/25/2016 1,077,370
8.14
12/27/2016
1,077,352
4/4/2017 871,815
8.17
5/4/2017
871,806
5/23/2017 876,277
8.10
6/23/2017
876,254
8/24/2017 870,360
8.02
9/25/2017
870,337

suspension of the share repurchase program our board of directors approved the repurchase of shares of our common stock from our stockholders who have requested repurchases in connection with such stockholder’s death or disability. In the event of the death or disability of a stockholder, the Company will repurchase the shares held by such stockholder at a price equal to the NAV per share of our shares as disclosed in the periodic report the Company files with the SEC immediately following the date of the death or disability of such stockholder. The Company's board of directors has the right to suspend or terminate repurchases due to death or disability to the extent that it determines that it is in the Company's best interest to do so.

In addition, on April 28, 2021, our board of directors authorized a share repurchase program, pursuant to which the Company intends to conduct quarterly share repurchases, beginning in the second quarter of 2021, of the lesser of: (i) the number of shares of common stock, par value $0.0001 per share, that the Company can purchase with the proceeds received under the DRIP from the prior quarter; or (ii) 2.5% of the weighted average number of shares outstanding in the prior four calendar quarters (the “Share Repurchase Program”). Notwithstanding the foregoing, in connection with the first share repurchase offer for the quarter ending June 30, 2021, the Company intends to repurchase the number of shares that the Company can purchase with the proceeds received under the DRIP from the prior two quarters. The purpose of the Share Repurchase Program is to allow stockholders to sell their shares back to the Company at a price equal to the most recently disclosed net asset value per share of the Company’s common stock immediately prior to the date of such share repurchase. Shares will be purchased from stockholders participating in the Share Repurchase Program on a pro rata basis. The Share Repurchase Program may be suspended, extended, modified or discontinued by our board of directors at any time.

During the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, the Company repurchased ~~64,880~~962,031 and ~~100,213~~964,482 shares ~~respectively,~~of certain shareholders pursuant to the Share Repurchase Program and due to death or disability, respectively. During the three and six months ended June 30, 2020, the Company repurchased 34,086 and 158,947 shares of certain shareholders due to ~~death. During the three and nine months ended September 30, 2016, the Company repurchased 1,373 and 2,362 shares, respectively, of certain shareholders due to death.~~death or disability, respectively.

Note ~~14.~~13. Financial Highlights

The following is a schedule of financial highlights of the Company for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016:~~2020:

	2021			2020
Per Share Data:⁽¹⁾
Net asset value at beginning of period	$	5.12		$	5.78
Net investment income/(loss)		0.08			(0.14	)
Net realized gains/(losses) on investments		(0.04	)		(0.08	)
Net unrealized appreciation/(depreciation) on investments		0.32			(0.86	)
Net increase/(decrease) in net assets	$	0.36		$	(1.08	)
Distributions declared from net investment income⁽²⁾		(0.06	)		(0.11	)
Total distributions to shareholders	$	(0.06	)	$	(0.11	)
Net asset value at end of period	$	5.43		$	4.60
Total return based on net asset value⁽⁴⁾⁽⁵⁾		7.26	%		(18.91	)%
Portfolio turnover rate⁽⁵⁾		12.90	%		10.61	%
Shares outstanding at end of period		102,080,498			102,833,465
Net assets at end of period	$	553,830,487		$	472,758,920
Ratio/Supplemental Data (annualized):
Ratio of net investment income/(loss) to average net assets		3.00	%		(5.63	)%
Ratio of net expenses (including incentive fees) to average net assets		7.02	%		14.86	%
Ratio of incentive fees to average net assets ⁽⁵⁾		—	%		—	%
Supplemental Data (annualized):
Asset coverage ratio per unit⁽⁶⁾	$	5,459		$	3,440
Percentage of non-recurring fee income		5.61	%		3.62	%
Ratio of net expenses (excluding incentive fees) to average net assets		7.02	%		14.86	%
Ratio of interest and financing related expenses to average net assets ⁽⁷⁾		1.15	%		3.13	%
Total Debt Outstanding:⁽⁸⁾⁽⁹⁾
Revolving Credit Facility	$	124,200,000		$	193,813,072

2017 2016
Per Share Data:⁽¹⁾
Net asset value at beginning of period $ 8.17
$ 8.16
Net investment income 0.40
0.52
Net realized gains/(losses) on investments and total return swap (0.24 ) (0.07 )
Net unrealized appreciation/(depreciation) on investments and total return swap 0.04
0.13
Net increase in net assets $ 0.20
$ 0.58
Distributions from return of capital —
—
Distributions declared from net investment income⁽²⁾
(0.48 ) (0.60 )
Distributions from net realized capital gains —
—
Total distributions to shareholders $ (0.48 ) $ (0.60 )
Issuance of common shares above net asset value⁽³⁾
—
—
Net asset value at end of period $ 7.89
$ 8.14
Total return based on net asset value^(4)(5)(6)
2.56 % 7.42 %
Portfolio turnover rate⁽⁶⁾
24.47 % 19.82 %
Shares outstanding at end of period 96,300,123
93,716,607
Net assets at end of period $ 763,961,571
$ 763,129,940
Ratio/Supplemental Data (annualized):
Ratio of net investment income to average net assets⁽⁵⁾
6.90 % 9.07 %
Ratio of net expenses (including incentive fees) to average net assets⁽⁵⁾
6.71 % 4.53 %
Ratio of incentive fees to average net assets ⁽⁶⁾
0.24 % 1.10 %
Supplemental Data (annualized):
Asset coverage ratio per unit⁽⁷⁾
$ 2,345
$ 2,585
Percentage of non-recurring fee income⁽⁸⁾
6.75 % 6.98 %
Ratio of net expenses (excluding incentive fees) to average net assets 6.47 % 3.43 %
Ratio of interest related expenses to average net assets 2.11 % 1.88 %

~~________________________________~~

(1)
~~(1)~~	The per share data was derived by using the weighted average shares outstanding during the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016,~~2020, which were ~~96,078,793~~102,575,026 and ~~89,015,100~~102,785,734 respectively. Table may not foot due to rounding.

(2)
~~(2)~~	The per share data for distributions is the actual amount of paid distributions per share during the period.

(3)
~~(3)~~	Shares issued under the DRIP (see Note ~~13) as well as the continuous issuance of common shares~~12) may cause onan incremental increase/decrease in NAV per share due to the effect of issuing shares at amounts that differ from the prevailing NAV at each issuance.

(4)
~~(4)~~	Total annual returns are historical and assume reinvestments of all dividends and distributions at prices obtained under the Company’s DRIP, and no sales charge.

(5)
~~(5)~~	Total returns, ratios of net investment income and ratios of gross expenses to average net assets for the nine months ended September 30, 2016, prior to the effect of the Expense Support Agreement were as follows: total return 5.14% and ratio of net investment income: 6.15% and ratio of net expenses to average net assets: 7.62%, respectively. Not annualized.

(6)
~~(6)~~	~~Not annualized.~~

~~(7)~~

Asset coverage per unit is the ratio of the carrying value of the Company's total consolidated assets for regulatory purposes, ~~which includes the underlying fair value of net TRS,~~ less all liabilities and indebtedness not represented by senior securities to the aggregate amount of Senior Securities representing ~~indebtedness and the implied leverage on the TRS.~~indebtedness. Asset coverage per unit is expressed in terms of dollars per $1,000 of indebtedness. As of ~~September~~June 30, ~~2017~~2021 and ~~2016,~~2020, the Company's Asset Coverage Per Unit including unfunded commitments was ~~$2,153~~$4,613 and ~~$2,528,~~$3,123, respectively.

(7)
~~(8)~~	Represents the impact of non-recurring fees over total investment income.

(8)	Total amount of each class of senior securities outstanding at the end of the period excluding debt issuance costs.

(9)	Average market value per unit is not applicable as these classes of securities are not registered for public trading.

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Note ~~15.~~14. Subsequent Events

Management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements as of and for the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, except as disclosed below.

On October 4, 2017, the Company, SIC Advisors and certain of our affiliates received an exemptive order that supersedes the Exemptive Order (the “New Exemptive Order”) and allows, in addition to the entities already covered by the Exemptive Order, Medley LLC and its subsidiary, Medley Capital LLC, to the extent they hold financial assets in a principal capacity, and any direct or indirect, wholly- or majority-owned subsidiary of Medley LLC that is formed in the future, to participate in co-investment

transactions with us that would otherwise be prohibited by either or both of Sections 17(d) and 57(a)(4) of the 1940 Act. The terms of the New Exemptive Order are substantially similar to the Exemptive Order.

~~On October 10, 2017,~~July 27, 2021, our board of directors declared a series of ~~semi-monthly~~monthly distributions for ~~October, November~~July, August and ~~December 2017~~September 2021 in the amount of ~~$0.02667 per share. These distributions represent an annualized yield of 7.49% based on our then-current offering price of $8.55~~$0.01 per share. Stockholders of record as of each respective monthly record date will be entitled to receive the distribution. Below are the details for each respective distribution:

Record Date	Payment Date	Amount per share
July 29, 2021	July 30, 2021	$	0.01
August 30, 2021	August 31, 2021		0.01
September 29, 2021	September 30, 2021		0.01

Record Date Payment Date Amount per share
October 13 and 31, 2017 October 31, 2017 $ 0.02667
November 15 and 30, 2017 November 30, 2017 0.02667
December 15 and 29, 2017 December 29, 2017 0.02667

As previously reported, on March 7, 2021, Medley LLC, the parent of the Company’s investment adviser and administrator, commenced a voluntary case (the “Chapter 11 Case”) under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). The Chapter 11 Case is captioned In re Medley LLC, No, 21-10526 (KBO) (Bankr. D. Del. Mar. 7, 2021).

In connection with the Chapter 11 Case, on August 11, 2021 the Company entered into a commitment letter (the “Commitment Letter”) among the Company, Medley LLC, Medley Capital LLC, and SIC Advisors, pursuant to which the Company has agreed to contribute $2.1 million, subject to certain conditions, to an employee compensation and retention plan (the “Compensation Plan”) to be established by Medley Capital LLC. The Compensation Plan is an element of a Term Sheet dated July 21, 2021 (the “Term Sheet”) filed by Medley LLC with the Bankruptcy Court as Docket No. 276 in the Chapter 11 Case.

Pursuant to the Commitment Letter, the Company’s contribution is to be made in three equal installments of $700,000 in September 2021, December 2021, and January 2022, and the contributions are to be used solely to fund payments to employees of Medley Capital LLC under the Compensation Plan. To the extent any such employee forfeits a compensation payment to which he or she would otherwise be entitled or is obligated to return a payment received, the Company is entitled to recoup the amount in its sole discretion.

The Company’s obligations under the Commitment Letter are subject to review and approval of definitive documents relating to the Compensation Plan, conditionally approved by the Bankruptcy Court for purposes of solicitation of votes, in form and substance consistent with the Compensation Plan included as an exhibit to the Term Sheet.

The Company ~~issued common shares~~may terminate the Commitment Letter by written notice to Medley LLC, Medley Capital LLC, and ~~received gross proceeds~~SIC Advisors upon the occurrence of ~~$2.0 million subsequent~~certain events, including, but not limited to, ~~September~~the entry by the Bankruptcy Court of an order materially inconsistent with the Term Sheet; the failure by the Bankruptcy Court to have entered an appropriate order by November 30, ~~2017 through November 6, 2017.~~2021; or the failure by SIC Advisors to comply with any covenant or agreement in the Investment Advisory Agreement dated April 5, 2012 between SIC Advisors and the Company.

F-48

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Item2. ~~Management’s~~Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with our financial statements and related notes and other financial information appearing elsewhere in this ~~quarterly~~annual report on Form ~~10-Q.~~

10-K.

Except as otherwise specified, references to “we,” “us,” “our,” or the “Company,” refers to Sierra Income Corporation. “SIC Advisors” or “Adviser” refers to SIC Advisors LLC, our investment adviser. SIC Advisors is a ~~majority~~wholly owned subsidiary of Medley LLC, which is controlled by Medley Management Inc., ~~a publicly traded~~an asset management firm ("MDLY"), which in turn is controlled by Medley Group LLC, an entity wholly-owned by the senior professionals of Medley LLC. “Medley” refers, collectively, to the activities and operations of Medley Capital LLC, Medley LLC, Medley Management Inc., Medley Group LLC, SIC Advisors, associated investment funds and their respective affiliates.

Some of the statements in this quarterly report on Form 10-Q constitute forward-looking statements, which relate to future events or our performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties, including, but not limited to, statements as to:

~~our future operating results;~~

~~our business prospects and the prospects of our portfolio companies;~~

~~changes in the economy;~~

~~risks associated with possible disruptions in our operations or the economy generally;~~

~~the effect of investments that we expect to make;~~

~~our contractual arrangements and relationships with third parties;~~

~~actual and potential conflicts of interest with SIC Advisors and its affiliates;~~

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

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

~~the use of borrowed money to finance a portion of our investments;~~

~~the adequacy of our financing sources and working capital;~~

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

~~the ability of SIC Advisors to locate suitable investments for us and to monitor and administer our investments;~~

~~the ability of SIC Advisors and its affiliates to attract and retain highly talented professionals;~~

~~our ability to maintain our qualification as a RIC and as a BDC; and~~

~~the effect of changes in laws or regulations affecting our operations.~~

	•	our future operating results;
	•	our business prospects and the prospects of our portfolio companies;
	•	changes in laws and regulations, changes in political, economic or industry conditions, and changes in the interest rate environment 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;
	•	risks associated with possible disruptions in our operations or the economy generally including the current economic downturn as a result of the impact of the COVID-19 pandemic;
	•	the risk that, if the current period of capital markets disruption and instability continues for an extended period of time, that our stockholders may not receive distributions, if any, or at historical levels and that a portion of our distribution in the future may be a return of capital;
	•	the effect of investments that we expect to make;
	•	our contractual arrangements and relationships with third parties;
	•	actual and potential conflicts of interest with SIC Advisors and its affiliates;
	•	the dependence of our future success on the general economy and its effect on the industries in which we invest;
	•	the ability of our portfolio companies to achieve their objectives;
	•	the use of borrowed money to finance a portion of our investments;
	•	the adequacy of our financing sources and working capital;
	•	the timing of cash flows, if any, from the operations of our portfolio companies;
	•	the ability of SIC Advisors to locate suitable investments for us and to monitor and administer our investments;
	•	the ability of SIC Advisors and its affiliates to attract and retain highly talented professionals;
	•	our ability to maintain our qualification as a RIC and as a BDC;
	•	the effect of changes in laws or regulations affecting our operations; and
	•	uncertainties associated with the impact from the COVID-19 pandemic, including: its impact on the global and U.S. capital markets, and the global and U.S. economy; the length and full duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our and their ability to achieve their respective objectives; the effect of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business and our use of borrowed money to finance a portion of our investments

Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words “trend,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “potential,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or similar expressions. The forward-looking statements contained in this quarterly report involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including due to the factors set forth asin “Risk Factors” in this quarterly report on Form 10-Q and in Item 1A “Risk Factors” in Part 1 of our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016.~~

2020.

We have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume no obligation to update any such forward-looking statements. Actual results could differ materially from those anticipated in our forward-looking statements, and future results could differ materially from historical performance. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the SEC, including quarterly reports on Form 10-Q, annual reports on Form 10-K, and current reports on Form 8-K.

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Recent COVID-19 Developments

On March 11, 2020, the World Health Organization declared the novel coronavirus (“COVID-19”) as a pandemic, and, on March 13, 2020, the United States declared a national emergency with respect to COVID-19. The outbreak of COVID-19 has severely impacted global economic activity and caused significant volatility and negative pressure in financial markets. The global impact of the COVID-19 outbreak has been rapidly evolving and has led to, and for an unknown period of time will continue to lead to, disruptions in local, regional, national and global markets and economies affected thereby, including the United States. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience a recession, and we anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States and other major markets.

We have been closely monitoring, and will continue to monitor, the COVID-19 pandemic 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. In addition, as a result of the adverse effects of the COVID-19 pandemic and the related disruption and financial distress, certain portfolio companies may seek to modify their loans from us, which could reduce the amount or extend the time for payment of principal, reduce the rate or extend the time of payment of interest, and/or increase the amount of PIK interest we receive with respect to such investment, among other things. The effects of the COVID-19 pandemic have also impeded, and may continue to impede, the ability of certain of our portfolio companies to raise additional capital and/or pursue asset sales or otherwise execute strategic transactions, which could have a material adverse effect on the valuation of our investments in such companies. Portfolio companies operating in certain industries may be more susceptible to these risks than other portfolio companies in other industries in light of the effects of the COVID-19 pandemic. Given the rapid development and fluidity of this situation, 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 orders imposed by state and local governments, including developing liquidity plans supported by internal cash reserves, and shareholder support. The extent to which our operations may be impacted by the COVID-19 pandemic will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including guidance from U.S. and international authorities, including federal, state and local public health authorities. Furthermore, the impacts of a potential worsening of global economic conditions and the continued disruptions to and volatility in the financial markets remain unknown. COVID-19 presents material uncertainty and risks with respect to the underlying value of the Company’s portfolio companies, the Company’s business, financial condition, results of operations and cash flows, such as the potential negative impact to financing arrangements, increased costs of operations, changes in law and/or regulation, and uncertainty regarding government and regulatory policy.

We have evaluated subsequent events from June 30, 2021 through the filing date of this quarterly report on Form 10-Q. However, as the discussion in this Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations relates to the Company’s financial statements for the quarterly period ended June 30, 2021, the analysis contained herein may not fully account for impacts relating to the COVID-19 pandemic. In that regard, for example, as of June 30, 2021, the Company valued its portfolio investments in conformity with U.S. GAAP based on the facts and circumstances known by the Company at that time, or reasonably expected to be known at that time. Due to the overall volatility that the COVID-19 pandemic has caused during the time that followed our June 30, 2021 valuation, any valuations conducted now or in the future in conformity with U.S. GAAP could result in a lower fair value of our portfolio. The impact to our results going forward will depend to a large extent on future developments and new information that may emerge regarding the duration of COVID-19 and the actions taken by authorities and other entities to contain the coronavirus or treat its impact, all of which are beyond our control. Accordingly, the Company cannot predict the extent to which its financial condition and results of operations will be affected at this time.

Overview

We are an externally managed non-diversified closed-end management investment company that has elected to be treated as a BDC under the 1940 Act. We are externally managed by SIC Advisors, which is aan investment adviser registered ~~investment adviser~~with the SEC under the Advisers Act. SIC Advisors is responsible for sourcing potential investments, conducting due diligence on prospective investments, analyzing investment opportunities, structuring investments and monitoring our portfolio on an ongoing basis. In addition, we have ~~qualified~~elected, and intend to ~~continue to~~ qualify annually to be treated, for U.S. federal income tax purposes, as a RIC under Subchapter M of the Code.

Under our Investment Advisory Agreement, we pay SIC Advisors a base management fee as well as an incentive fee based on our investment performance. Also, under the Administration Agreement, we reimburse Medley for the allocable portion of overhead and other expenses incurred by Medley Capital LLC in performing its obligations under the Administration Agreement, including our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer and their respective staffs.

We intend to meet our investment objective by primarily lending to, and investing in, the debt of privately owned U.S. middle market companies, which we define as companies with annual revenue between $50 million and $1 billion. We intend to focus primarily on making investments in first lien senior secured debt, second lien secured debt, and to a lesser extent, subordinated debt, of middle market companies in a broad range of industries. We expect that the majority of our debt investments will bear interest at floating interest rates, but our portfolio may also include fixed-rate investments. We will originate transactions sourced through SIC Advisors’ existing network, and, to a lesser extent, expect to acquire debt securities through the secondary market. We may make equity investments in companies that we believe will generate appropriate risk adjusted returns, although we do not expect such investments to be a substantial portion of our portfolio.

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The level of our investment activity depends on many factors, including the amount of debt and equity capital available to prospective portfolio companies, the level of merger, acquisition and refinancing activity for such portfolio companies, the availability of credit to finance transactions, the general economic environment and the competitive environment for the types of investments we make. ~~Based on prevailing market conditions, we anticipate that we will invest the proceeds from each subscription closing generally within 30-90 days.~~ The precise timing of our investment activity will depend on the availability of investment opportunities that are consistent with our investment objectives and strategies.

As a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities of private or thinly traded public U.S. companies, cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. In addition, we are only allowed to borrow money such that our asset coverage, as defined in the 1940 Act, equals at least 200% (or 150% if certain requirements under the 1940 Act are met) after such borrowing, with certain limited exceptions. To ~~obtain and~~ maintain our RIC ~~status,~~tax treatment, we must meet specified source-of-income and asset diversification requirements. To be eligible for RIC tax treatment under Subchapter M for U.S. federal income tax purposes, we must distribute at least 90% of our net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, for the taxable year.

Revenues

We generate revenue in the form of interest on the debt securities that we hold and distributions and capital gains on other interests that we acquire in our portfolio companies. We expect that the senior debt we invest in will generally have stated terms of three to ten years and that the subordinated debt we invest in will generally have stated terms of five to ten years. Our senior and subordinated debt investments bear interest at a fixed or floating rate. Interest on debt securities is generally payable monthly, quarterly or semiannually. In addition, some of our investments provide for deferred interest payments or PIK interest. The principal amount of the debt securities and any accrued but unpaid interest generally will become due at the maturity date. In addition, we may generate revenue in the form of commitment and other fees in connection with transactions. ~~Original issue discounts~~OIDs and market discounts or premiums will be capitalized, and we will accrete or amortize such amounts as interest income. We will record prepayment premiums on loans and debt securities as fee income. Dividend income, if any, will be recognized on an accrual basis to the extent that we expect to collect such amounts.

Expenses

Our primary annual operating expenses consist of the payment of advisory fees and the reimbursement of expenses under our Investment Advisory Agreement with SIC Advisors and our Administration Agreement with Medley Capital LLC. We bear other expenses, which include, among other things:

~~corporate, organizational and offering expenses relating to offerings of our common stock, subject to limitations included in our Investment Advisory Agreement;~~

~~the cost of calculating our NAV, including the related fees and cost of any third-party valuation services;~~

~~the cost of effecting sales and repurchases of shares of our common stock and other securities;~~

fees payable to third parties relating to, or associated with, monitoring our financial and legal affairs, making investments, and valuing investments, including fees and expenses associated with performing due diligence reviews of prospective investments;

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

~~transfer agent and custodial fees;~~

~~fees and expenses associated with marketing efforts subject to limitations included in the Investment Advisory Agreement;~~

~~federal and state registration fees and any stock exchange listing fees;~~

~~federal, state and local taxes;~~

~~independent directors’ fees and expenses, including travel expenses;~~

~~costs of director and stockholder meetings, proxy statements, stockholders’ reports and notices;~~

~~costs of fidelity bonds, directors and officers/errors and omissions liability insurance and other types of insurance;~~

direct costs, including those relating to printing of stockholder reports and advertising or sales materials, mailing, long distance telephone and staff subject to limitations included in the Investment Advisory Agreement;

~~fees and expenses associated with independent audits and outside legal costs, including compliance with the Sarbanes-Oxley Act of 2002, the 1940 Act and applicable federal and state securities laws;~~

~~brokerage commissions for our investments;~~

all other expenses incurred by us or SIC Advisors in connection with administering our investment portfolio, including expenses incurred by SIC Advisors in performing certain of its obligations under the Investment Advisory Agreement; and

the reimbursement of the compensation of our Chief Financial Officer and Chief Compliance Officer, whose compensation is paid by Medley Capital LLC, to the extent that each such reimbursement amount is annually approved by our independent director committee and subject to the limitations included in our Administration Agreement.

	•	corporate, organizational and offering expenses relating to offerings of our common stock, subject to limitations included in our Investment Advisory Agreement;
	•	the cost of calculating our NAV, including the related fees and cost of any third-party valuation services;
	•	the cost of effecting sales and repurchases of shares of our common stock and other securities;
	•	fees payable to third parties relating to, or associated with, monitoring our financial and legal affairs, making investments, and valuing investments, including fees and expenses associated with performing due diligence reviews of prospective investments;
	•	interest payable on debt, if any, incurred to finance our investments;
	•	transfer agent and custodial fees;
	•	fees and expenses associated with marketing efforts subject to limitations included in the Investment Advisory Agreement;
	•	federal and state registration fees and any stock exchange listing fees;
	•	federal, state and local taxes;
	•	independent directors’ fees and expenses, including travel expenses;
	•	costs of director and stockholder meetings, proxy statements, stockholders’ reports and notices;
	•	costs of fidelity bonds, directors and officers/errors and omissions liability insurance and other types of insurance;
	•	direct costs, including those relating to printing of stockholder reports and advertising or sales materials, mailing, long distance telephone and staff subject to limitations included in the Investment Advisory Agreement;
	•	fees and expenses associated with independent audits and outside legal costs, including compliance with the Sarbanes-Oxley Act of 2002, the 1940 Act and applicable federal and state securities laws;
	•	brokerage commissions for our investments;
	•	all other expenses incurred by us or SIC Advisors in connection with administering our investment portfolio, including expenses incurred by SIC Advisors in performing certain of its obligations under the Investment Advisory Agreement; and
	•	the reimbursement of the compensation of our Chief Financial Officer and Chief Compliance Officer and their respective staffs, whose compensation is paid by Medley Capital LLC, to the extent that each such reimbursement amount is annually approved by our independent director committee and subject to the limitations included in our Administration Agreement.

Administrative Services

We reimburse Medley Capital LLC for the administrative expenses necessary for its performance of services to us. However, such reimbursement is made at an amount equal to the lower of Medley Capital LLC’s actual costs or the amount that we would be required to pay for comparable administrative services in the same geographic location. Also, such costs will be reasonably allocated to us on the basis of assets, revenues, time records or other reasonable methods. We will not reimburse Medley Capital LLC for any services for which it receives a separate fee or for rent, depreciation, utilities, capital equipment or other administrative items allocated to a controlling person of Medley Capital LLC.

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Portfolio and Investment Activity

The following table shows the amortized cost and the fair value of our investment portfolio as of ~~September~~June 30, ~~2017:~~

Amortized Cost Percentage Fair Value Percentage
Senior secured first lien term loans $ 572,860,454
51.4 % $ 553,428,971
51.9 %
Senior secured second lien term loans 304,081,717
27.3
285,048,102
26.7
Senior secured first lien notes 53,951,323
4.8
52,850,766
5.0
Subordinated notes 74,393,199
6.7
71,311,459
6.7
Sierra Senior Loan Strategy JV I LLC 72,991,250
6.5
72,086,943
6.8
Warrants/equity 36,522,102
3.3
32,335,851
3.0
Total $ 1,114,800,045
100.0 % $ 1,067,062,092
100.0 %

2021:

	Amortized Cost		Percentage			Fair Value		Percentage
Senior secured first lien term loans	$	391,803,346		56.5	%	$	340,020,040		53.9	%
Senior secured second lien term loans		89,818,435		13.0			88,498,230		14.0
Subordinated notes		60,457,435		8.7			54,568,511		8.6
Sierra Senior Loan Strategy JV I LLC		110,050,000		15.9			85,775,721		13.6
Equity/warrants		41,107,263		5.9			62,484,225		9.9
Total	$	693,236,479		100.0	%	$	631,346,727		100.0	%

As of ~~September~~June 30, ~~2017,~~2021, our income-bearing investment portfolio, which represented ~~94.6%~~86.7% of our total portfolio, had a weighted average yield based upon the cost of our investment portfolio of ~~9.2%~~7.8%, and ~~9.7%~~2.3% of our income-bearing portfolio bore interest based on fixed rates, while ~~90.3%~~97.7% of our income-bearing portfolio bore interest at floating rates, such as LIBOR.

~~For~~

As of June 30, 2021, the Company held loans it has made directly to 68 investee companies with aggregate principal amounts of $575.7 million. As of December 31, 2020, the Company held loans it has made directly to 67 investee companies with aggregate principal amounts of $541.1 million. During the three and six months ended ~~September~~June 30, ~~2017, we invested $48.1~~2021, the Company made 10 and 36 loans to investee companies, respectively, with aggregate principal amounts of $43.3 million and $81.8 million, respectively. During the three and six months ended June 30, 2020, the Company made 19 and 31 loans to investee companies, respectively, with aggregate principal amounts of ~~principal in directly originated transactions across 10 portfolio companies~~$33.2 million and ~~$68.2~~$68.3 million, of principal in syndicated transactions across 14 portfolio companies. As of September 30, 2017, the investment portfolio was comprised of $906.3 million of principal in directly originated transactions across 75 portfolio companies and $219.9 million of principal in syndicated transactions across 41 portfolio companies.

respectively.

The following table shows the amortized cost and the fair value of our investment portfolio as of December 31, ~~2016:~~

Amortized Cost Percentage Fair Value Percentage
Senior secured first lien term loans $ 515,753,491
50.2 % $ 493,340,277
50.2 %
Senior secured first lien notes 72,767,547
7.1
71,970,598
7.3
Senior secured second lien term loans 275,915,932
26.9
260,008,735
26.4
Subordinated notes 53,041,209
5.2
55,185,590
5.6
Sierra Senior Loan Strategy JV I LLC 60,785,000
5.9
60,496,647
6.2
Warrants/equity 48,219,259
4.7
42,142,475
4.3
Total $ 1,026,482,438
100.0 % $ 983,144,322
100.0 %

2020:

	Amortized Cost		Percentage			Fair Value		Percentage
Senior secured first lien term loans	$	369,385,810		52.7	%	$	315,490,601		52.3	%
Senior secured first lien notes		8,473,750		1.2			8,548,755		1.4
Senior secured second lien term loans		103,081,287		14.7			93,794,917		15.5
Subordinated notes		65,561,840		9.4			50,039,500		8.3
Sierra Senior Loan Strategy JV I LLC		110,050,000		15.7			81,788,964		13.5
Equity/warrants		44,451,252		6.3			54,323,743		9.0
Total	$	701,003,939		100.0	%	$	603,986,480		100.0	%

As of December 31, ~~2016,~~2020, our income-bearing investment portfolio, which represented ~~97.8%~~87.2% of our total portfolio, had a weighted average yield based upon the cost of our investment portfolio of approximately ~~9.3%~~8.0%, and ~~11.0%~~3.5% of our income-bearing portfolio bore interest based on fixed rates, while ~~89.0%~~96.5% of our income-bearing portfolio bore interest at floating rates, such as LIBOR.

The following table shows weighted average current yield to maturity ~~including the yield of cash collateral on the TRS,~~ based on fair value as of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016:~~

2020:

	June 30, 2021						December 31, 2020
				Weighted						Weighted
				Average						Average
	Percentage			Current			Percentage			Current
	of Total			Yield for Total			of Total			Yield for Total
	Investments			Investments(1)			Investments			Investments(1)
Senior secured first lien term loans		53.9	%		8.5	%		52.7	%		9.3	%
Senior secured first lien notes		—			—			1.2			11.0	%
Senior secured second lien term loans		14.0			11.1	%		14.7			10.9	%
Subordinated notes		8.6			10.2	%		9.4			8.8	%
Sierra Senior Loan Strategy JV I LLC		13.6			8.4	%		15.7			9.0	%
Equity/warrants		9.9			12.5	%		6.3			6.0	%
Total		100.0	%		9.1	%		100.0	%		9.5	%

(1)	The weighted average current yield for total investments does not represent the total return to our stockholders.

September 30, 2017 December 31, 2016

Percentage
of Total
Investments

Weighted
Average
Current
Yield for
Total
Investments

Percentage
of Total
Investments

Weighted
Average
Current
Yield for
Total
Investments
Senior secured first lien term loans 50.0 % 9.1 % 48.1 % 9.5 %
Senior secured first lien notes 4.8
10.3
7.0
8.8
Senior secured second lien term loans 25.7
10.0
25.3
10.7
Subordinated notes 6.4
13.8
5.4
17.0
Sierra Senior Loan Strategy JV I LLC 6.5
10.5
5.9
10.3
Warrants/Equity 6.6
13.5
8.3
12.5
Total 100.0 % 10.1 % 100.0 % 10.4 %

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The following table shows the portfolio composition by industry ~~grouping, including the TRS underlying loans,~~classification based on fair value as of ~~September~~June 30, ~~2017:~~

Industry Classification
Investments
at Fair
Value⁽¹⁾

Percentage
of Total
Portfolio⁽¹⁾

Value of
TRS
Underlying
Loans
Percentage
of TRS
Underlying
Loans
Total
Investments
at Fair Value
including the
value of TRS
Underlying
Loans
Percentage
of Total
Portfolio
Including
the value
of TRS
Underlying
Loans
Services: Business $ 159,677,377
15.0 % $ 16,975,860
8.0 % $ 176,653,237
13.8 %
Multi-Sector Holdings 143,398,402
13.4
—
—
143,398,402
11.2
Healthcare & Pharmaceuticals 85,276,518
8.0
24,771,298
11.6
110,047,816
8.6
Banking, Finance, Insurance & Real Estate 74,791,174
7.0
17,363,454
8.2
92,154,628
7.2
Aerospace & Defense 82,024,806
7.7
4,666,436
2.2
86,691,242
6.8
Hotel, Gaming & Leisure 63,094,334
5.9
13,749,427
6.5
76,843,761
6.0
High Tech Industries 53,978,631
5.1
20,172,985
9.5
74,151,616
5.8
Construction & Building 68,939,049
6.5
—
—
68,939,049
5.4
Energy: Oil & Gas 35,461,384
3.3
8,184,031
3.8
43,645,415
3.4
Transportation: Cargo 38,717,742
3.6
3,342,554
1.6
42,060,296
3.3
Media: Advertising, Printing & Publishing 25,682,164
2.4
13,622,981
6.4
39,305,145
3.1
Retail 29,526,830
2.8
7,305,477
3.4
36,832,307
2.9
Capital Equipment 14,660,612
1.4
20,288,939
9.5
34,949,551
2.7
Chemicals, Plastics & Rubber 28,718,889
2.7
4,974,684
2.3
33,693,573
2.6
Services: Consumer 8,631,157
0.8
18,313,597
8.6
26,944,754
2.1
Telecommunications 21,722,937
2.0
4,142,447
1.9
25,865,384
2.0
Automotive 18,884,012
1.8
2,920,500
1.4
21,804,512
1.7
Metals & Mining 21,127,331
2.0
—
—
21,127,331
1.7
Media: Broadcasting & Subscription 13,889,508
1.3
6,580,375
3.1
20,469,883
1.6
Beverage & Food 19,006,462
1.8
1,339,640
0.6
20,346,102
1.6
Containers, Packaging & Glass 19,277,831
1.8
—
—
19,277,831
1.5
Media: Diversified & Production 15,910,550
1.5
953,552
0.4
16,864,102
1.3
Wholesale 12,422,565
1.2
3,423,247
1.6
15,845,812
1.2
Consumer Goods: Durable —
—
11,990,159
5.6
11,990,159
0.9
Transportation: Consumer 7,443,960
0.7
—
—
7,443,960
0.6
Consumer Goods: Non-durable 1,916,200
0.2
4,843,080
2.3
6,759,280
0.5
Utilities: Electric —
—
2,950,175
1.4
2,950,175
0.2
Environmental Industries 2,881,667
0.3
—
—
2,881,667
0.2
Total $ 1,067,062,092
100.0 % $ 212,874,898
100.0 % $ 1,279,936,990
100.0 %

~~_______________________~~


~~(1)~~	~~Does not include TRS underlying loans~~

2021:

Industry Classification	Amortized Cost		Percentage			Fair Value		Percentage
Multi-Sector Holdings	$	169,631,708		24.5	%	$	140,344,232		22.2	%
High Tech Industries		88,071,141		12.7			88,996,742		14.1
Services: Business		67,002,170		9.7			66,688,199		10.6
Healthcare & Pharmaceuticals		59,028,667		8.5			48,320,180		7.6
Construction & Building		49,492,098		7.1			46,427,176		7.3
Consumer Goods: Durable		20,137,444		2.9			32,699,525		5.2
Aerospace & Defense		34,388,965		5.0			31,921,162		5.0
Banking, Finance, Insurance & Real Estate		18,509,706		2.7			27,403,505		4.3
Automotive		27,866,568		4.0			26,424,424		4.2
Hotel, Gaming & Leisure		36,945,037		5.3			24,765,792		3.9
Environmental Industries		12,031,568		1.7			21,568,052		3.4
Containers, Packaging & Glass		16,931,649		2.4			16,950,627		2.7
Services: Consumer		9,704,227		1.4			9,937,562		1.6
Chemicals, Plastics & Rubber		10,047,621		1.5			9,275,302		1.5
Forest Products & Paper		6,395,222		0.9			8,100,597		1.3
Media: Diversified & Production		15,412,995		2.2			7,531,034		1.2
Transportation: Cargo		6,448,180		0.9			6,451,966		1.0
Transportation: Consumer		6,853,763		1.0			5,425,489		0.9
Metals & Mining		3,545,379		0.5			3,545,421		0.6
Retail		9,793,881		1.4			2,976,677		0.5
Capital Equipment		2,459,249		0.4			2,454,024		0.4
Energy: Oil & Gas		20,813,748		3.0			1,707,715		0.3
Wholesale		1,682,536		0.3			1,389,202		0.2
Beverage & Food		42,957		0.0			42,122		0.0
Total	$	693,236,479		100.0	%	$	631,346,727		100.0	%

The following table shows the portfolio composition by industry ~~grouping, including the TRS underlying loans,~~classification based on fair value as of December 31, ~~2016:~~

2020:

Industry Classification	Amortized Cost		Percentage			Fair Value		Percentage
Multi-Sector Holdings	$	174,660,001		24.9	%	$	131,792,864		21.8	%
Services: Business		79,260,551		11.3			73,716,395		12.2
High Tech Industries		75,519,344		10.8			71,792,022		11.9
Healthcare & Pharmaceuticals		68,599,968		9.8			58,275,198		9.6
Consumer Goods: Durable		32,045,028		4.6			41,016,292		6.8
Construction & Building		42,928,750		6.1			38,356,358		6.4
Banking, Finance, Insurance & Real Estate		27,848,664		4.0			37,620,161		6.2
Aerospace & Defense		33,558,896		4.8			29,723,725		4.9
Hotel, Gaming & Leisure		36,326,705		5.2			24,013,769		4.0
Automotive		18,886,756		2.7			17,404,476		2.9
Containers, Packaging & Glass		15,206,840		2.2			15,120,424		2.5
Environmental Industries		5,041,430		0.7			10,052,691		1.7
Services: Consumer		9,700,000		1.4			9,725,000		1.6
Chemicals, Plastics & Rubber		10,060,861		1.4			9,063,498		1.5
Forest Products & Paper		6,477,887		0.9			7,770,704		1.3
Media: Diversified & Production		15,474,145		2.2			6,780,000		1.1
Transportation: Cargo		6,877,294		1.0			6,770,781		1.1
Transportation: Consumer		7,975,416		1.1			6,068,082		1.0
Metals & Mining		3,492,436		0.5			3,492,479		0.6
Energy: Oil & Gas		20,868,832		3.0			2,625,018		0.4
Wholesale		2,212,919		0.3			1,746,044		0.3
Retail		7,934,347		1.1			1,012,358		0.2
Beverage & Food		46,869		0.0			48,141		0.0
Total	$	701,003,939		100.0	%	$	603,986,480		100.0	%

Industry Classification
Investments
at Fair
Value⁽¹⁾

Percentage
of Total
Portfolio⁽¹⁾

Value of
TRS
Underlying
Loans
Percentage
of TRS
Underlying
Loans
Total
Investments
at Fair Value
including the
value of TRS
Underlying
Loans
Percentage
of Total
Portfolio
Including
the value
of TRS
Underlying
Loans
Services: Business $ 149,451,149
15.2 % $ 23,571,092
11.0 % $ 173,022,241
14.5 %
Multi-Sector Holdings 130,182,237
13.3
—
—
130,182,237
10.9
Banking, Finance, Insurance & Real Estate 72,938,844
7.4
20,713,321.0
9.7
93,652,165
7.8
Hotel, Gaming & Leisure 69,640,838
7.1
19,867,696
9.3
89,508,534
7.5
Healthcare & Pharmaceuticals 69,382,894
7.1
13,393,023
6.3
82,775,917
6.9
Aerospace & Defense 70,126,640
7.1
4,656,652
2.2
74,783,292
6.2
Retail 61,292,231
6.2
11,005,219
5.2
72,297,450
6.0
Construction & Building 58,267,425
5.9
2,999,433
1.4
61,266,858
5.1
Transportation: Cargo 28,493,057
2.9
13,276,638.0
6.2
41,769,695
3.5
High Tech Industries 25,888,925
2.6
15,474,967
7.2
41,363,892
3.5
Energy: Oil & Gas 33,048,939
3.4
7,413,640
3.5
40,462,579
3.4
Telecommunications 37,580,414
3.8
2,487,500.0
1.2
40,067,914
3.3
Media: Advertising, Printing & Publishing 19,306,587
2.0
12,000,704.0
5.6
31,307,291
2.6
Capital Equipment 12,088,629
1.2
16,029,467
7.5
28,118,096
2.4
Wholesale 21,660,294
2.2
4,976,467
2.3
26,636,761
2.2
Automotive 24,222,630
2.5
—
—
24,222,630
2.0
Beverage & Food 19,282,080
2.0
2,912,490
1.4
22,194,570
1.9
Media: Diversified & Production 15,733,786
1.6
4,925,156.0
2.3
20,658,942
1.7
Metals & Mining 20,518,139
2.1
—
—
20,518,139
1.7
Media: Broadcasting & Subscription 15,830,498
1.6
4,618,688
2.2
20,449,186
1.7
Chemicals, Plastics & Rubber 15,726,190
1.6
—
—
15,726,190
1.3
Services: Consumer 5,201,522
0.5
8,838,651.0
4.1
14,040,173
1.2
Containers, Packaging & Glass —
—
10,642,499.0
5.0
10,642,499
0.9
Transportation: Consumer 7,280,374
0.7
—
—
7,280,374
0.6
Energy: Electricity —
—
5,564,390.0
2.6
5,564,390
0.5
Consumer goods: Non-Durable —
—
5,091,975.0
2.4
5,091,975
0.4
Utilities: Electric —
—
3,033,750.0
1.4
3,033,750
0.3
Total $ 983,144,322
100.0 % $ 213,493,418
100.0 % $ 1,196,637,740
100.0 %

Table of Contents

~~_______________________~~


~~(1)~~	~~Does not include TRS underlying loans~~

SIC Advisors regularly assesses the risk profile of our portfolio investments and rates each of them based on the categories set forth below, which we refer to as SIC Advisors’ investment credit rating. ~~Credit Ratings~~Investment credit ratings are assigned to each of the investments in our portfolio that are directly held by the Company, but exclude any off-balance sheet interests of the ~~Company, such as the loans underlying the TRS:~~

Company:

Investment Credit Rating		Definition
1
~~Investment~~ ~~Credit Rating~~	~~Definition~~
1	Investments that are performing above expectations.

2		Investments that are performing within expectations, with risks that are neutral or favorable compared to risks at the time of origination or purchase. All new loans are rated ‘2’.

3		Investments that are performing below expectations and that require closer monitoring, but where no loss of interest, dividend or principal is expected. Companies rated ‘3’ may be out of compliance with financial covenants, however, loan payments are generally not past due.


4
4	Investments that are performing below expectations and for which risk has increased materially since origination or purchase. Some loss of interest or dividend is expected, but no loss of principal. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due (but generally not more than 180 days past due).

5		Investments that are performing substantially below expectations and whose risks have increased substantially since origination or purchase. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. Some loss of principal is expected.

The following table shows the distribution of our investment portfolio, not including cash and cash equivalents, on the 1 to 5 investment credit rating scale at fair value as of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016:~~

September 30, 2017 December 31, 2016
Investment
Credit Rating

Investments at
Fair Value
Percentage
Investments at
Fair Value
Percentage
1 $ 35,899,629
3.4 % $ 57,356,293
5.8 %
2 872,752,279
81.8
798,629,992
81.2
3 104,027,251
9.7
77,762,796
7.9
4 34,825,963
3.3
35,294,284
3.6
5 19,556,970
1.8
14,100,957
1.4
Total $ 1,067,062,092
100.0 % $ 983,144,322
100.0 %

2020:

	June 30, 2021					December 31, 2020
Investment	Investments at					Investments at
Credit Rating	Fair Value		Percentage			Fair Value		Percentage
1	$	73,108,650		11.7	%	$	51,481,987		8.5	%
2		409,818,847		64.9			410,310,087		67.9
3		116,910,784		18.5			110,668,216		18.3
4		21,884,519		3.5			13,500,546		2.3
5		9,623,927		1.5			18,025,644		3.0
Total	$	631,346,727		100.0	%	$	603,986,480		100.0	%

The COVID-19 pandemic has impacted our investment ratings as of June 30, 2021, causing downgrades of certain portfolio companies. As the COVID-19 pandemic continues to evolve, we are continuing to maintain close communications with our portfolio companies to proactively assess and manage potential risks across our investment portfolio. We have also increased oversight and analysis of credits in vulnerable industries in an attempt to improve loan performance and reduce credit risk.

Results of Operations

The following table shows operating results for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016:~~

For the Three Months Ended September 30, For the Nine Months Ended September 30,
2017 2016 2017 2016
Total investment income $ 27,640,738
$ 25,148,661
$ 78,575,554
$ 73,172,215
Total expenses, net 14,139,018
9,538,699
39,218,902
26,880,838
Net investment income 13,501,720
15,609,962
39,356,652
46,291,377
Net realized gain/(loss) from investments and total return swap (2,140,704 ) (10,469,065 ) (22,951,047 ) (6,219,699 )
Net change in unrealized appreciation/(depreciation) on investments and total return swap (8,121,591 ) 15,521,547
3,763,899
11,665,907
Change in provision for deferred taxes on unrealized gain on investments 148,949
172,128
(185,369 ) 92,495
Net increase in net assets resulting from operations $ 3,388,374
$ 20,834,572
$ 19,984,135
$ 51,830,080

2020:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Total investment income	$	14,981,562		$	11,699,454		$	26,906,217		$	22,876,265
Total expenses		9,183,784			26,467,117			16,916,669			36,820,128
Income Tax Expense		685,309			—			1,938,320			—
Net investment income/(loss)		5,112,469			(14,767,663	)		8,051,228			(13,943,863	)
Net realized gain/(loss) from investments		(4,173,319	)		(8,265,767	)		(4,102,524	)		(8,048,288	)
Net change in unrealized appreciation/(depreciation) on investments		20,105,791			32,004,115			35,126,515			(88,519,105	)
Change in provision for deferred taxes on unrealized gain on investments		(2,632,090	)		(293,783	)		(1,824,121	)		(52,848	)
Net increase/(decrease) in net assets resulting from operations	$	18,412,851		$	8,676,902		$	37,251,098		$	(110,564,104	)

Investment Income

Total investment income increased ~~$2,492,077,~~$3,282,108, or ~~9.9%~~28.1%, to ~~$27,640,738~~$14,981,562 for the three months ended ~~September~~June 30, ~~2017,~~2021, compared to ~~$25,148,661~~$11,699,454 for the three months ended ~~September~~June 30, ~~2016.~~2020. Total investment income consisted primarily of portfolio interest and dividends, which increased ~~$3,517,090,~~$3,319,077, or ~~15.5%~~29.5%, to ~~$26,362,875~~$14,561,572 for the three months ended ~~September~~June 30, ~~2017,~~2021, compared to ~~$22,658,463~~$11,242,495 for the three months ended ~~September~~June 30, ~~2016.~~2020. This increase was primarily ~~due~~attributable to ~~a $114 million, or 11.5%,~~an increase in ~~our average investment portfolio. Fee~~dividend income decreased $1,235,903, or 50.2%, to $1,228,131 for the three months ended September 30, 2017, compared to $2,464,034 for the three months ended September 30, 2016, primarily due to a decrease in fees associated with loan originations and loan prepayments.

from certain portfolio investments.

Total investment income increased ~~$5,403,339,~~$4,029,952, or ~~7.4%~~17.6%, to ~~$78,575,554~~$26,906,217 for the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, compared to ~~$73,172,215~~$22,876,265 for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2020. Total investment income consisted primarily of portfolio interest and dividends, which increased ~~$6,455,402,~~$5,057,569, or ~~9.5%~~24.0%, to ~~$74,421,996~~$26,123,802 for the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, compared to ~~$67,966,594~~$21,066,233 for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2020. This increase was primarily ~~due~~attributable to ~~a $95.3 million, or 9.8%,~~an increase in ~~our average investment~~dividend income from certain portfolio investments.

As of June 30, 2021, certain investments in eleven portfolio companies were on non-accrual status with a combined cost of $81,560,703, or 11.8% of the cost of the Company's portfolio, and a combined fair value of $31,438,283 or 5.0% of the fair value of the Company's portfolio. As of June 30, 2020, certain investments in sixteen portfolio companies were on non-accrual status with a combined cost of $135,486,131, or 17.1% of the cost of the Company's portfolio, and a combined fair value of $32,257,556, or 5.5% of the fair value of the Company's portfolio. As of June 30, 2020, certain investments in one portfolio company were on partial non-accrual status with a cost of $793,067, or 0.1% of the cost of the Company's portfolio, and a fair value of $634,384, or 0.1% of the fair value of the Company's portfolio.

Fee income ~~decreased $1,089,492,~~increased $96,789, or ~~21.1%~~30.9%, to ~~$4,068,295~~$409,724 for the ~~nine~~three months ended ~~September~~June 30, ~~2017,~~2021, compared to ~~$5,157,787~~$312,935 for the ~~nine~~three months ended ~~September~~June 30, ~~2016,~~2020, primarily due to an increase in fees associated with loan originations and loan ~~prepayments.~~amendments. Fee income increased $331,849, or 76.4%, to $766,482 for the six months ended June 30, 2021, compared to $434,633 for the six months ended June 30, 2020, primarily due to an increase in fees associated with loan originations and loan amendments.

Table of Contents

Operating Expenses

The following table shows operating expenses for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016~~ 2020:

For the Three Months Ended September 30, For the Nine Months Ended September 30,
2017 2016 2017 2016
Base management fees $ 5,378,233
$ 5,040,490
$ 16,036,068
$ 14,790,696
Interest expenses 4,434,712
3,433,081
12,177,674
10,095,690
Incentive fees 1,323,999
2,372,355
1,872,805
7,876,060
General and administrative expenses 1,295,253
1,655,295
3,783,340
4,331,001
Administrator expenses 745,817
780,166
2,333,968
1,997,067
Offering costs 545,959
703,075
1,367,343
2,074,035
Professional fees 415,045
943,864
1,647,704
1,809,418
Total expenses 14,139,018
14,928,326
39,218,902
42,973,967
Expense support reimbursement —
(5,389,627 ) —
(16,093,129 )
Total expenses, net of expense support reimbursement $ 14,139,018
$ 9,538,699
$ 39,218,902
$ 26,880,838

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Base management fees	$	3,025,363	$	2,944,745	$	6,091,760	$	6,196,196
Interest and financing expenses		1,397,723		3,454,940		3,084,782		7,742,603
General and administrative expenses		2,238,942		8,307,229		3,850,569		10,278,197
Administrator expenses		582,279		669,025		1,225,899		1,390,657
Offering costs		5,156		1,914		5,156		5,157
Professional fees		1,934,321		11,089,264		2,658,503		11,207,318
Total expenses	$	9,183,784	$	26,467,117	$	16,916,669	$	36,820,128

Total expenses decreased ~~$789,308,~~$17,283,333, or ~~5.3%~~65.3%, to ~~$14,139,018~~$9,183,784 for the three months ended ~~September~~June 30, ~~2017,~~2021, as compared to ~~$14,928,326~~$26,467,117 for the three months ended ~~September~~June 30, ~~2016,~~2020, primarily due to ~~lower incentive fees.~~a decrease in interest and financing expenses and a decrease in general and administrative expenses and professional fees related to the one-time expense of deferred transaction costs. Total expenses decreased ~~$3,755,065,~~$19,903,459, or ~~8.7%~~54.1%, to ~~$39,218,902~~$16,916,669 for the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, as compared to ~~$42,973,967~~$36,820,128 for the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2020, primarily due to ~~lower incentive fees.~~

a decrease in interest and financing expenses and a decrease in general and administrative expenses and professional fees related to the one-time expense of deferred transaction costs.

Base management fees increased ~~$337,743,~~$80,618, or ~~6.7%~~2.7%, to ~~$5,378,233~~$3,025,363 for the three months ended ~~September~~June 30, ~~2017,~~2021, as compared to ~~$5,040,490~~$2,944,745 for the three months ended ~~September~~June 30, ~~2016,~~2020, primarily due to an increase in our gross ~~assets of $67 million, or 5.7%.~~assets. Base management fees ~~increased $1,245,372,~~decreased $104,436, or ~~8.4%~~1.7%, to ~~$16,036,068~~$6,091,760 for the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, as compared to ~~$14,790,696~~$6,196,196 for the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2020, primarily due to ~~an increase~~a decrease in our ~~average~~ gross ~~assets of $78 million,~~assets.

Interest and financing expenses decreased $2,057,217, or ~~6.9%.~~

~~Interest expenses increased $1,001,631, or 29.2%~~59.5%, to ~~$4,434,712~~$1,397,723 for the three months ended ~~September~~June 30, ~~2017,~~2021, as compared to ~~$3,433,081~~$3,454,940 for the three months ended ~~September~~June 30, ~~2016,~~2020, primarily due to ~~an increase in~~ the ~~weighted average~~wind-down and termination of the ING Credit Facility (as defined below) from May 2020 through July 2020, as well as the repayment of $55,800,000 of the outstanding ~~debt~~ balance of ~~our credit facilities of $55,219,780,~~its Alpine Credit Facility. Interest and financing expenses decreased $2,057,217, or ~~a 16.6% increase. Interest expenses increased 2,081,984, or 20.6%~~59.5%, to ~~$12,177,674~~$1,397,723 for the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, as compared to ~~$10,095,690~~$3,454,940 for the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2020, primarily due to ~~an increase in~~ the ~~weighted average interest rate on our credit facilities~~wind-down and termination of ~~0.7%~~the ING Credit Facility (as defined below) from May 2020 through July 2020, as well as the repayment of $55,800,000 of the outstanding balance of its Alpine Credit Facility.

General and administrative expenses decreased $6,068,287, or 73.0%, to $2,238,942 for the three months ended June 30, 2021, as compared to $8,307,229 for the three months ended June 30, 2020, primarily due to a ~~21.2% increase.~~

~~Expense Support and Reimbursement Agreement~~

~~From June 29, 2012 through December 31, 2016, we were party~~decrease in expenses related to ~~an Expense Support and Reimbursement Agreement with SIC Advisors (the “Expense Support Agreement”). During~~ the ~~term~~expensing of previously deferred transaction costs related to the termination of the ~~Expense Support Agreement, SIC Advisors reimbursed us~~previously contemplated mergers. General and administrative expenses decreased $6,427,628, or 62.5%, to $3,850,569 for ~~operating~~the six months ended June 30, 2021, as compared to $10,278,197 for the six months ended June 30, 2020, primarily due to a decrease in expenses ~~in an amount equal~~related to the ~~difference between our distributions paid~~expensing of previously deferred transaction costs related to ~~stockholders in each month, less~~ the ~~sum~~termination of ~~our net investment income, net realized capital gains and dividends paid~~the previously contemplated mergers.

Professional fees decreased $9,154,943 or 82.6% to us from our portfolio companies, not included in net income and net realized capital gains, during such period (“Expense Support Reimbursement”). To the extent that no dividends or other distributions were paid to our stockholders in any given month, then the Expense Support Reimbursement for such month was equal to such amount necessary in order for available operating funds$1,934,321 for the ~~month~~three months ended June 30, 2021, as compared to ~~equal zero. From April 1, 2016 until~~$11,089,264 for the ~~expiration~~three months ended June 30, 2020, primarily due to a decrease in expenses related to the expensing of previously deferred transaction costs related to the termination of the ~~Expense Support Agreement on December 31, 2016, SIC Advisors made expense support payments on~~previously announced merger transaction. Professional fees decreased $8,548,815 or 76.3% to $2,658,503 for the six months ended June 30, 2021, as compared to $11,207,318 for the six months ended June 30, 2020, primarily due to a ~~discretionary basis by making an election on the last day of each month to fund an expense support payment~~decrease in ~~an amount equal~~expenses related to the ~~difference between our distributions paid~~expensing of previously deferred transaction costs related to ~~stockholders during such month less~~ the ~~sum of our net investment income, net realized capital gains and dividends paid to us from our portfolio companies, not included in net income and net realized capital gains during such period.~~

~~The purpose~~termination of the Expense Support Agreement was to cover distributions to stockholders so as to ensure that the distributions did not constitute a return of capital for GAAP purposes and to reduce operating expenses until we had raised sufficient capital to be able to absorb such expenses. The Expense Support Agreement expired on December 31, 2016.

~~Pursuant to the Expense Support Agreement, we will reimburse SIC Advisors for expense support payments it~~ previously made following any calendar quarter for which we received net investment income, net realized capital gains and dividends from our portfolio companies (not included in net income and net realized capital gains) in excess of the distributions paid to our stockholders during such calendar quarter (the “Excess Operating Funds”). Any such reimbursement will be made within three years of the date that the expense support payment obligation was incurred by SIC Advisors, subject to the conditions described below. The amount of the reimbursement during any calendar quarter will equal the lesser of (i) the Excess Operating Funds received during the quarter and (ii) the aggregate amount of all expense payments made by SIC Advisors that have not yet been

reimbursed. In addition, we will only make reimbursement payments to the extent our current annualized “operating expense ratio” is equal to or less than our operating expense ratio for the quarter during which the corresponding expense obligation was incurred and to the extent the annualized rate of its regular cash dividends to our stockholders for the month is equal to or greater than the annualized rate of our regular cash distributions to stockholders for the month during which the corresponding expense payment was incurred.

As of September 30, 2017 and December 31, 2016, we recorded $0 and $7,892,273, respectively, in our consolidated statement of assets and liabilities as due from affiliate relating to the Expense Support Agreement.

announced merger transaction.

Net Realized Gains/Losses ~~from~~on Investments

We measure realized gains or losses by the difference between the net proceeds from the disposition and the amortized cost basis of an investment, without regard to unrealized gains or losses previously recognized. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, we recognized net realized ~~gain/(loss)~~loss on investments of ~~$(2,140,704)~~$4,173,319 and ~~$(22,951,047), respectively,~~$4,102,524 primarily due to ~~certain non-cash restructuring transactions net~~the sale of ~~realized gains on the TRS.~~investments. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2020, we recognized net realized ~~gain/(loss)~~loss on investments of ~~$(10,469,065)~~$8,265,767 and ~~$(6,219,699), respectively,~~$8,048,288 primarily due to ~~certain non-cash restructuring transactions net~~the sale of ~~realized gains on the TRS.~~

investments.

Net Unrealized Appreciation/Depreciation on Investments

Net change in unrealized appreciation/depreciation on investments reflects the net change in the fair value of our ~~total~~ investments including the ~~total return swap and~~ provision for deferred taxes. For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, we recorded a net change in unrealized ~~appreciation/(depreciation)~~appreciation, net of ~~$(7,972,642)~~tax, of $17,473,701 and ~~$3,578,530,~~$33,302,394 respectively. The unrealized appreciation for the three and six months ended June 30, 2021 resulted from positive market and credit-related adjustments.

For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2020, we recorded a net change in unrealized ~~appreciation/(depreciation)~~depreciation, net of ~~$15,693,675~~tax, of $31,710,332 and ~~$11,758,402,~~$88,571,953 respectively.

The unrealized depreciation was, in part, due to negative credit-related adjustments that caused a reduction in fair value of certain watch-list securities and portfolio investments on non-accrual status. In part, the net change in unrealized depreciation reflected widening credit spreads as market participants expected a higher yield on similar investments given the significant market volatility generated by the COVID-19 pandemic and, to some extent, other factors such as specific industry concerns, uncertainty about the duration of business shutdowns and near-term liquidity needs of certain of our portfolio investments.

Changes in Net Assets from Operations

For the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2021, we recorded a net increase in net assets resulting from operations of ~~$3,388,374~~$18,412,851 and ~~$19,984,135,~~$37,251,098, respectively. Based on ~~96,474,233~~102,380,357 and ~~96,078,793~~102,575,026 weighted average common shares outstanding for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017, respectively,~~2021, our per share net increase in net assets resulting from operations was ~~$0.04~~$0.18 and ~~$0.21,~~$0.36 respectively.

For the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2020, we recorded a net increase in net assets resulting from operations of ~~$20,834,572~~$8,676,902 and ~~$51,830,080, respectively.~~a net decrease in in net assets resulting from operations of $110,564,104 Based on ~~92,516,572~~102,856,314 and ~~89,015,100~~102,785,734 weighted average common shares outstanding for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016, respectively,~~2020, our per share net increase in net assets resulting from operations was ~~$0.23~~$0.08 and ~~$0.58, respectively.~~

our per share net decrease in net assets resulting from operations was $1.08.

Financial Condition, Liquidity and Capital Resources

As a BDC, we distribute substantially all of our net income to our stockholders and have an ongoing need to raise additional capital for investment purposes. To fund growth, we have a number of alternatives available to increase ~~capital;~~capital, including ~~raising equity,~~ increasing debt, and funding from operational cash flow.

Our liquidity and capital resources historically have been generated primarily from the net proceeds of our public offering of common stock, use of our credit ~~facilities and our TRS.~~facilities.

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As of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016,~~2020, we had ~~$82,699,636~~$54.1 million and ~~$99,400,794,~~$65.3 million, respectively, in cash and cash equivalents. In the future, we may generate cash from future offerings of securities, future borrowings and cash flows from operations, including interest earned from the temporary investment of cash in U.S. government securities and other high-quality debt investments that mature in one year or less. Our primary use of funds is to make investments in our targeted asset classes, cash distributions to our stockholders, and other general corporate purposes.

In order to satisfy the Code requirements applicable to us as a RIC, we intend to distribute to our stockholders substantially all of our taxable income, but we may also elect to periodically spillover certain excess undistributed taxable income from one tax year into the next tax year. In addition, as a BDC, we generally are required to meet a coverage ratio of total assets to total senior securities, which include borrowings and any preferred stock we may issue in the future, of at least 200%. (or 150% if certain requirements under the 1940 Act are met) at the time of the borrowing or issuance of preferred stock. This requirement limits the amount that we may borrow.

The following table shows our net borrowings as of ~~September~~June 30, ~~2017~~2021 and December 31, ~~2016:~~

2020:

	June 30, 2021						December 31, 2020
	Total		Balance		Unused		Total		Balance			Unused
	Commitment		Outstanding		Commitment		Commitment		Outstanding			Commitment
Alpine Credit Facility		124,200,000		124,200,000		—		180,000,000		145,000,000			35,000,000
Total before deferred financing costs		124,200,000		124,200,000		—		180,000,000		145,000,000			35,000,000
Unamortized deferred financing costs		—		—		—		—		(659,266	)		—
Total borrowings outstanding, net of deferred financing costs	$	124,200,000	$	124,200,000	$	—	$	180,000,000	$	144,340,734		$	35,000,000

ING Credit Facility

On August 12, 2016, wethe Company amended ~~our ING~~its existing senior secured syndicated revolving credit facility (the “ING Credit ~~Facility~~Facility” as amended from time to time as described below) pursuant to ~~the~~a Senior Secured Revolving Credit Agreement (the “Revolving Credit Agreement” as amended from time to time as described below) with certain lenders party thereto from time to time and ING Capital LLC, as administrative agent. The ING Credit Facility ~~matures on August 12, 2020 and is~~was secured by substantially all of ~~our~~the Company’s assets, subject to certain exclusions as further set forth in ~~the~~an Amended and Restated Guarantee, Pledge and Security Agreement (the “Security Agreement”) entered into in connection with the Revolving Credit Agreement, among ~~us,~~ the ~~Subsidiary Guarantors~~Company, the subsidiary guarantors party thereto, ING Capital LLC, as Administrative Agent, each Financial Agent and Designated Indebtedness Holder party thereto and ING Capital LLC, as Collateral Agent. The ING Credit Facility also ~~includes~~included usual and customary representations, covenants and events of default for senior secured revolving credit facilities of this nature.

On ~~February 13, 2015, commitments~~May 15, 2020, the Company entered into Amendment No. 4 to the ~~ING credit facility were expanded~~Revolving Credit Agreement to among other things, (i) shorten the maturity date from ~~$150 million~~March 31, 2021 to ~~$170~~September 30, 2020, (ii) accelerate the amortization of the Revolving Credit Agreement, and (iii) provide for the prepayment of the outstanding loans under the Revolving Credit Agreement in an aggregate principal amount of not less than $20 million. On ~~August 12, 2016, commitments to~~July 22, 2020, the ~~ING credit facility were expanded from $170 million to $175 million. On April 20, 2017, commitments to the ING Credit Facility were expanded from $175 million to $220 million.~~

The ING Credit Facility allows for us, at our option, to borrow money at a rate of either (i) an alternate base rate plus 1.50% per annum or (ii) LIBOR plus 2.50% per annum. The interest rate margins are subject to certain step-downs upon the satisfaction of certain conditions described inCompany paid all remaining outstanding obligations under the Revolving Credit Agreement. On July 31, 2020 (the “Termination Date”), the Company terminated the commitments on the Credit Agreement.

The alternate base rate will be the greatest of (i) the U.S. Prime Rate set forth in the Wall Street Journal, (ii) the federal funds effective rate plus 1/2 of 1%, and (iii) three month LIBOR plus 1%. As of September 30, 2017 and December 31, 2016, the commitment under the ING Credit FacilityCompany was $220 million and $175 million, respectively, and the ING Credit Facility includes an accordion feature that allows for potential future expansion of the ING Credit Facility up to a total of $500 million. Availability of loans under the ING Credit Facility is linked to the valuation of the collateral pursuant to a borrowing base mechanism.

~~We are~~ also required to pay a commitment fee to the lenders based on the daily unused portion of the aggregate commitments under the ING Credit Facility. The commitment fee iswas (i) 1.50% if the used portion of the aggregate commitments is less than or equal to 40%, (ii) 0.75% if the used portion of the aggregate commitments is greater than 40% and less than or equal to 65% or (iii) 0.50% if the used portion of the aggregate commitments is greater than 65%. The ING Credit Facility ~~provides~~provided that wethe Company may use the proceeds of the ~~facility~~ING Credit Facility for general corporate purposes, including making investments in accordance with ~~our~~the Company’s investment objective and strategy. ~~As of September 30, 2017, our borrowings~~

Borrowings under the Revolving Credit Agreement were subject to, among other things, a minimum borrowing base. Substantially all of the Company’s assets were pledged as collateral under the Revolving Credit Agreement. The ING Credit Facility ~~totaled $180,000,000~~required the Company to, among other things (i) make representations and ~~were recorded~~warranties regarding the collateral as ~~part~~well the Company’s business and operations, (ii) agree to certain indemnification obligations, and (iii) agree to comply with various affirmative and negative covenants. The documents for the Revolving Credit Agreement also included default provisions, such as the failure to make timely payments under the Revolving Credit Agreement, the occurrence of ~~revolving credit facility payable on our consolidated statements~~a change in control, and the failure by the Company to materially perform under the operative agreements governing the Revolving Credit Agreement, which, if not complied with, could have accelerated repayment under the Revolving Credit Agreement, thereby materially and adversely affecting the Company’s liquidity, financial condition and results of ~~assets~~operations.

In connection with the security interest established under the Security Agreement, the Company, ING Capital LLC, in its capacity as collateral agent, and ~~liabilities.~~

State Street Bank and Trust Company, in its capacity as the Company’s custodian, entered into a control agreement dated as of December 4, 2013, in order to, among other things, perfect the security interest granted pursuant to the Security Agreement in, and provide for control over, the related collateral. As a result of the termination of the Revolving Credit Agreement, the Security Agreement was terminated effective as of the Termination Date.

Alpine Credit Facility

On November 18, 2020, Alpine entered into Amendment No.1 to the Loan Agreement to, among other things, (i) extend the reinvestment period from December 29, 2020 to May 18, 2021, (ii) increase the applicable margin for advances from 2.85% to 3.10% per annum, (iii) reduce the amount of maximum borrowings in an aggregate principal amount from $300,000,000 to $180,000,000 on a committed basis, (iv) require the Company to maintain a minimum a cash balance of $20,000,000 in Alpine, and (v) decrease the compliance condition for net advances from 55% to 52.5% of net asset value. The maturity date under the Loan Agreement did not change and therefore any amounts borrowed, as well as all accrued and unpaid interest thereunder, will be due and payable on March 29, 2022. In connection with the Amendment, the Company repaid $35,000,000 of the outstanding balance under the Loan Agreement on November 18, 2020, reducing the outstanding balance from $180,000,000 to $145,000,000. The Alpine Credit Facility ended its reinvestment period on May 18, 2021 and has entered its amortization period. As of June 30, 2021 and December 31, 2020, Alpine’s borrowings under the Alpine Credit Facility totaled $124,200,000 and $145,000,000, respectively, and were recorded as part of revolving credit facilities payable on our Consolidated Statements of Assets and Liabilities.

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The Alpine Credit Facility provided for borrowings in an aggregate principal amount up to $180,000,000 on a committed basis. Borrowings outstanding under the Alpine Credit Facility are subject to compliance with a NAV coverage ratio with respect to the current value of Alpine’s portfolio and various ~~eligibility~~portfolio criteria must be ~~satisfied with respect to the initial acquisition of each loan in Alpine’s portfolio. Any amounts borrowed~~satisfied.

Pricing under the Alpine Credit Facility ~~will mature, and all accrued and unpaid~~for each one month calculation period is based on LIBOR for an interest ~~thereunder~~period of one month, plus a spread of 3.10% per annum. If LIBOR is unavailable, pricing will be ~~due~~determined at the prime rate offered by JPMorgan or the federal funds effective rate, plus a spread of 3.10% per annum. Interest is payable monthly in arrears. Borrowings of Alpine are considered borrowings of the Company for purposes of complying with the asset coverage requirements under the 1940 Act, applicable to BDCs.

Pursuant to a Sale and ~~payable, on March 29, 2022.~~ Contribution Agreement entered into between the Company and Alpine (the “Sale Agreement”) in connection with the Alpine Credit Facility, the Company may sell loans or contribute cash or loans to Alpine from time to time and will retain a residual interest in any assets contributed through its ownership of Alpine or will receive fair market value for any assets sold to Alpine. In certain circumstances the Company may be required to repurchase certain loans sold to Alpine. In addition to the acquisition of loans pursuant to the Sale Agreement, Alpine may purchase additional assets from various sources. Alpine has appointed SIC Advisors to manage its portfolio of assets pursuant to the terms of a Portfolio Management Agreement between SIC Advisors and Alpine.

As of ~~September~~June 30, ~~2017, Alpine’s~~2021 the carrying amount of the Company’s borrowings under the Alpine Credit Facility ~~totaled $240,000,000~~approximated the fair value of the Company’s debt obligation. The fair value of the Company’s debt obligation is determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Company’s borrowings under the Alpine Credit Facility is estimated based upon market interest rates of the Company’s borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. As of June 30, 2021 and ~~were recorded~~2020, the Alpine Credit Facility would be deemed to be Level 3, as ~~part of revolving credit facility payable on our consolidated statements of assets and liabilities.~~

defined in Note 4.

Contractual Obligations

The following table shows our payment obligations for repayment of debt, which total our contractual obligations at ~~September~~June 30, ~~2017:~~

Payment Due By Period

Total

Less than
1 Year
1 - 3 Years
3 - 5 Years

More than
5 Years
ING Credit Facility $ 180,000,000
$ —
$ —
$ 180,000,000
$ —
Alpine Credit Facility 240,000,000
—
240,000,000
—
Total Contractual Obligations $ 420,000,000
$ —
$ —
$ 420,000,000
$ —

2021:

	Payment Due By Period
			Less than						More than
	Total		1 Year		1 - 3 Years		3 - 5 Years		5 Years
Alpine Credit Facility	$	124,200,000	$	124,200,000	$	—	$	—	$	—
Total Contractual Obligations	$	124,200,000	$	124,200,000	$	—	$	—	$	—

We have entered into certain contracts under which we have material future commitments. On April 5, 2012, we entered into the Investment Advisory Agreement with SIC Advisors in accordance with the 1940 Act. The Investment Advisory Agreement became effective as of April 17, 2012, the date that we met the minimum offering requirement. Pursuant to the 1940 Act, the initial term of the Investment Advisory Agreement was for two years from its effective date, with one-year renewals subject to approval by our board of directors, a majority of whom must be independent directors. ~~On March 1, 2017,~~Most recently, on April 15, 2021, the board of directors approved the renewal of the Investment Advisory Agreement for an additional one-year term, ~~at an in-person meeting.~~which will expire on April 17, 2022. SIC Advisors serves as our investment adviser in accordance with the terms of the Investment Advisory Agreement. Payments under our Investment Advisory Agreement in each reporting period consist of (i) a management fee equal to a percentage of the value of our gross assets and (ii) an incentive fee based on our performance.

On April 5, 2012, we entered into the Administration Agreement with Medley Capital LLC with an initial term of two years, pursuant to which Medley Capital LLC furnishes us with administrative services necessary to conduct our day-to-day operations. ~~On March 1, 2017,~~The Administration Agreement became effective as of April 17, 2012, the date that we met the minimum offering requirement. Pursuant to its terms, and unless earlier terminated as described below, the Administration Agreement will remain in effect from year-to-year if approved annually by a majority of our directors who are not “interested persons” (as defined in Section 2(a)(19) of the 1940 Act) of the Company or Medley Capital LLC, and either the holders of a majority of our outstanding voting securities or our board of directors. Most recently, on April 15, 2021, the board of directors approved the renewal of the Administration Agreement for an additional one-year term, ~~at an in-person meeting.~~which will expire on April 17, 2022. Medley Capital LLC is reimbursed for administrative expenses it incurs on our behalf in performing its obligations. Such costs are reasonably allocated to us on the basis of assets, revenues, time records or other reasonable methods. We do not reimburse Medley Capital LLC for any services for which it receives a separate fee or for rent, depreciation, utilities, capital equipment or other administrative items allocated to a controlling person of Medley Capital LLC.

If any of our contractual obligations discussed above are terminated, our costs may increase under any new agreements that we enter into as replacements. We would also likely incur expenses in locating alternative parties to provide the services we expect to receive under the investment advisory agreement and administration agreement. Any new investment advisory agreement would also be subject to approval by our stockholders.

Off-Balance Sheet Arrangements

~~On August 27, 2013, Arbor, a wholly-owned financing subsidiary of the Company, entered into a TRS with Citibank.~~

On September 29, 2017, Arbor entered into the Fifth Amended Confirmation Letter Agreement with Citibank. The Fifth Amended Confirmation Agreement reduces the maximum portfolio notional (determined at the time each such loan becomes subject to the TRS) from $300,000,000 to $180,000,000, through incremental reductions of $60,000,000 on October 3, 2017 and $20,000,000 on each of November 3, 2017, December 3, 2017 and January 3, 2018. The Fifth Amended Confirmation Agreement also decreases the interest rate payable to Citibank from LIBOR plus 1.65% per annum to LIBOR plus 1.60% per annum. Other than the foregoing, the Fifth Amended Confirmation Agreement did not change any of the other material terms of the TRS.

The TRS with Citibank enables Arbor to obtain the economic benefit of the loans underlying the TRS, despite the fact that such loans will not be directly held or otherwise owned by Arbor, in return for an interest-type payment to Citibank. Accordingly, the TRS is analogous to Arbor utilizing leverage to acquire loans and incurring an interest expense to a lender.

Transactions in TRS contracts during the three months ended September 30, 2017 were $3.1 million in realized gains and $2.0 million in unrealized depreciation, which are recorded on the consolidated statements of operations.

Transactions in TRS contracts during the three months ended September 30, 2016 were $0.8 million in realized gains and $5.2 million in unrealized appreciation, which are recorded on the consolidated statements of operations.

Our derivative asset from Citibank, net of amounts available for offset under a master netting agreement as of September 30, 2017, was $1.0 million, which is recorded on the consolidated statements of assets and liabilities as a receivable due on total return swap.

~~The following table shows the volume of the Company’s derivative transactions for the three and nine months ended September 30, 2017 and 2016:~~

Three Months Ended
September 30,

Nine Months Ended
September 30,
2017 2016 2017 2016
Average notional par amount of contracts $ 246,554,568
$ 208,253,776
$ 248,738,019
$ 210,765,232

On March 27, 2015, the Company and GALIC entered into a limited liability company operating agreement to co-manage Sierra JV. All portfolio and other material decisions regarding Sierra JV must be submitted to Sierra JV's board of managers, which is comprised of four members, two of whom are selected by the Company and the other two are selected by GALIC. The Company ~~and GALIC have committed to provide $100 million of equity to~~has concluded that it does not operationally control Sierra JV. As the Company does not operationally control Sierra JV, it does not consolidate the operations of Sierra JV within the consolidated financial statements. As a practical expedient, the Company uses NAV to determine the fair value of its investment in Sierra JV; therefore, this investment has been presented as a reconciling item within the fair value hierarchy (see Note 4).

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As of June 30, 2021 and December 31, 2020, Sierra JV had total capital commitments of $124.6 million, with the Company providing ~~$87.5~~$110.1 million and GALIC providing ~~$12.5~~$14.5 million. ~~Sierra JV commenced operations on July 15, 2015. On August 4, 2015,~~ As of June 30, 2021 and December 31, 2020, approximately $124.5 million was funded relating to these commitments of which $110.1 million was from the Company. The Company does not have the right to withdraw any of their respective capital commitment, unless in connection with a transfer of its membership interests. The Company may transfer full membership interests as long as it is approved by all members and transferred in a transaction exempt from the registration requirements of the Securities Act or applicable state securities laws.

Sierra JV entered into a Senior Secured Revolving Credit Facility Agreement, as amended (the "JV Facility") with Deutsche Bank, AG, New York Branch ("DB").

On March 29, 2019, the JV Facility ~~led by Credit Suisse, AG with initial commitments~~reinvestment period was extended from March 30, 2019 to June 28, 2019.

On June 28, 2019, the JV Facility reinvestment period was further extended from June 28, 2019 to October 28, 2019.

On October 28, 2019, the JV Facility reinvestment period was further extended from October 28, 2019 to March 31, 2020 and the interest rate was modified from bearing an interest rate of ~~$100 million.~~ LIBOR (with a 0.00% floor) + 2.50% per annum to LIBOR (with a 0.00% floor) + 2.75% per annum.

On ~~December 29, 2015,~~March 31, 2020, the total commitment under the JV Facility was ~~amended~~reduced to $240.0 million from $250.0 million and the ~~commitment increased to $135 million. On~~reinvestment period was extended from March 31, ~~2017, Credit Suisse, AG assigned its~~2020 to April 30, 2020.

On April 30, 2020, the total commitment ~~in the JV Facility to Deutsche Bank AG and~~under the JV Facility was ~~amended~~reduced to ~~increase commitments~~$200.0 million from $240.0 million, the reinvestment period was extended from April 30, 2020 to ~~$240 million~~July 31, 2020 and ~~extend~~ the maturity date was extended to ~~March 30, 2022.~~ July 31, 2023.

On ~~May 26, 2017, commitments to~~July 29, 2020, the total commitment under the JV ~~facility were increased~~Facility was reduced to $175.0 million from ~~$240~~$200.0 million, the reinvestment period was extended from July 31, 2020 to ~~$250 million.~~April 30, 2021 and the maturity date was extended to April 30, 2024. Additionally, the interest rate was modified from bearing an interest rate of LIBOR (with a 0.00% floor) + 2.75% per annum to LIBOR (with a 0.50% floor) + 3.25% per annum.

The JV Facility ended its reinvestment period on April 18, 2021 and has entered its amortization period. The first scheduled amortization payment occurs on April 18, 2022 with subsequent payments required every six months until the final amortization payment that is set to occur at maturity on April 18, 2024.

The JV Facility is secured substantially by all of Sierra JV's assets, subject to certain exclusions set forth in the JV Facility. As of ~~September~~June 30, ~~2017,~~2021 and December 31, 2020, there was ~~$159.9~~$124.7 million outstanding under the JV Facility and the Sierra JV had total assets at fair value of $241.3 million. As of September 30, 2017, Sierra JV’s portfolio was comprised of 100.0% of senior secured first lien term loans to 49 different portfolio companies with one portfolio company on non-accrual status.

~~We have~~Facility.

The Company has determined that ~~the~~ Sierra JV is an investment company under ASC 946, however in accordance with such guidance, wethe Company will generally not consolidate its investment in a company other than a wholly owned investment company subsidiary or a controlled operating company whose business consists of providing services to ~~us.~~the Company. Accordingly, ~~we do~~the Company does not consolidate ~~our~~its interest in ~~the~~ Sierra JV.

Distributions

We have elected, and intend to ~~continue to~~ qualify annually, to be treated for U.S. federal income tax purposes, as a RIC under Subchapter M of the Code. To ~~obtain and~~ maintain RIC tax treatment, we must, among others things, distribute at least 90% of our net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any, to our stockholders. In order to avoid certain U.S. federal excise taxes imposed on RICs, we must distribute during each calendar year an amount at least equal to the sum of: (i) 98% of our ordinary income for the calendar year, (ii) 98.2% of our capital gains in excess of capital losses for the one-year period generally ending on October 31 of the calendar year (unless an election is made by us to use our taxable year) and (iii) any ordinary income and net capital gains for preceding years that were not distributed during such years and on which we paid no U.S. federal income tax.

While we intend to distribute any income and capital gains in the manner necessary to minimize imposition of the 4% U.S. federal excise tax, sufficient amounts of our taxable income and capital gains may not be distributed to avoid entirely the imposition of the tax. In that event, we will be liable for the tax only on the amount by which we do not meet the foregoing distribution requirement.

We currently intend to distribute net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, at least annually out of the assets legally available for such distributions. However, we may decide in the future to retain such capital gains for investment and elect to treat such gains as deemed distributions to you. If this happens, you will be treated for U.S. federal income tax purposes as if you had received an actual distribution of the capital gains that we retain and reinvested the net after tax proceeds in us. In this situation, you would be eligible to claim a tax credit (or, in certain circumstances, a tax refund) equal to your allocable share of the tax we paid on the capital gains deemed distributed to you. We can offer no assurance that we will continue to achieve results that will permit the payment of any cash distributions and, if we issue senior securities, we may be prohibited from making distributions if doing so causes us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or if distributions are limited by the terms of any of our borrowings.

~~Subject~~

On July 31, 2020, our board of directors temporarily suspended the monthly distributions on the shares of the Company’s common stock. On October 22, 2020, our board of directors determined to reinstate the monthly distributions on the shares of the Company’s common stock. Any distributions to our stockholders paid by the Company is subject to our board of directors’ discretion and applicable legal restrictions ~~we expect to authorize~~ and pay monthly distributions to our stockholders. Any distributions to our stockholders will be declared out of assets legally available for distribution. We expect to continue making monthly distributions unlesstake into account our results of operations, our general financial condition, general economic conditions, or other factors prohibit us from ~~doing so.~~declaring a distribution. Any distributions to our stockholders will be declared out of assets legally available for distribution. From time to time, but not less than quarterly, we will review our accounts to determine whether distributions to our stockholders are appropriate. We have not established limits on the amount of funds we may use from available sources to make distributions. From the commencement of our offering through September 30, 2016, a portion of our distributions were comprised in part of expense support payments made by SIC Advisors that ~~may be~~were subject

to repayment by us within three years of the date of such support payment. The purpose of this arrangement was to cover distributions to stockholders so as to ensure that the distributions did not constitute a return of capital for GAAP purposes. In the future, we may have distributions which could be characterized as a return of capital. Such distributions are not based on our investment performance and can only be sustained if we achieve positive investment performance in future periods and/or SIC Advisors elects to make expense support payments under an expense support agreement. Any future reimbursements to SIC Advisors will reduce the net investment income that may otherwise be available for distribution to stockholders. There can be no assurance that we will achieve the performance necessary to sustain our distributions or that we will be able to pay distributions at all. SIC Advisors has no obligation to enter into a renewed expense support agreement. For the three and nine months ended September 30, 2016, if net expense support payments of $5,389,627 and $16,093,129 were not made by SIC Advisors, 30% and 30% of the distributions would have been a return of capital for GAAP purposes, respectively.

Our distributions may exceed our earnings, which we refer to as a return of ~~capital, especially during the period before we have invested substantially all of the proceeds of our offering.~~capital. As a result, a portion of the distributions we make may represent a return of capital. Our use of the term “return of capital” merely means distributions in excess of our earnings and as such may constitute a return on your individual investments and does not mean a return on capital. Therefore stockholders are advised that they should be aware of the differences with our use of the term “return of capital” and “return on capital.”

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The following table reflects the cash distributions per share that ~~we have~~the Company has declared or paid to ~~our~~its stockholders ~~for the current~~during 2021 and ~~prior fiscal years.~~2020. Stockholders of record as of each respective record date were entitled to receive the distribution.

Record Date Payment Date Amount per share
January 15 and 29, 2016 January 29, 2016 $ 0.03333
February 12 and 29, 2016 February 29, 2016 0.03333
March 15 and 31, 2016 March 31, 2016 0.03333
April 15 and 29, 2016 April 29, 2016 0.03333
May 13 and 31, 2016 May 31, 2016 0.03333
June 15 and 30, 2016 June 30, 2016 0.03333
July 15 and 29, 2016 July 29, 2016 0.03333
August 15 and 31, 2016 August 31, 2016 0.03333
September 15 and 30, 2016 September 30, 2016 0.03333
October 14 and 31, 2016 October 31, 2016 0.02667
November 15 and 30, 2016 November 30, 2016 0.02667
December 15 and 31, 2016 December 31, 2016 0.02667
January 13 and 31, 2017 January 31, 2017 0.02667
February 15 and 28, 2017 February 28, 2017 0.02667
March 15 and 31, 2017 March 31, 2017 0.02667
April 14 and 28, 2017 April 28, 2017 0.02667
May 15 and 31, 2017 May 31, 2017 0.02667
June 15 and 30, 2017 June 30, 2017 0.02667
July 14 and 31, 2017 July 31, 2017 0.02667
August 15 and 31, 2017 August 31, 2017 0.02667
September 15 and 29, 2017 September 29, 2017 0.02667

Record Date	Payment Date	Amount per share
January 30, 2020	January 31, 2020	$	0.03500
February 27, 2020	February 28, 2020		0.03500
March 30, 2020	March 31, 2020		0.03500
October 29, 2020	October 30, 2020		0.01000
November 27, 2020	November 30, 2020		0.01000
December 30, 2020	December 31, 2020		0.01000
January 28, 2021	January 29, 2021		0.01000
February 25, 2021	February 26, 2021		0.01000
March 30, 2021	March 31, 2021		0.01000
April 29, 2021	April 30, 2021		0.01000
May 28, 2021	May 31, 2021		0.01000
June 29, 2021	June 30, 2021		0.01000

We have adopted an “opt in” ~~distribution reinvestment plan~~DRIP pursuant to which common stockholders may elect to have the full amount of any cash distributions reinvested in additional shares of our common stock. As a result, if we declare a cash distribution, stockholders that have “opted in” to our ~~distribution reinvestment plan~~DRIP will have their distribution automatically reinvested in additional shares of our common stock rather than receiving cash dividends. Stockholders who receive distributions in the form of shares of common stock will be subject to the same federal, state and local tax consequences as if they received cash distributions.

Each year a statement on Internal Revenue Service Form 1099-DIV (or such successor form) identifying the source of the distribution (i.e., paid from ordinary income, paid from net capital gain on the sale of securities, or a return of capital) will be mailed to our stockholders. The tax basis of shares must be reduced by the amount of any return of capital distributions, which will result in an increase in the amount of any taxable gain (or a reduction in any deductible loss) on the sale of shares.

Related Party Transactions

~~On October 19, 2011, SIC Advisors entered into a subscription agreement to purchase 110.80 shares of common stock for cash consideration of $1,000. The consideration represents $9.025 per share.~~

~~On April 17, 2012, SIC Advisors purchased 1,108,033.24 shares of our common stock for aggregate gross proceeds of $10,000,000. The consideration represents $9.025 per share.~~

We have entered into an Investment Advisory Agreement with SIC Advisors in which our senior management holds an equity interest and ~~were~~are party to the ~~Expense Support~~Incentive Fee Waiver Agreement ~~through December 31, 2016.~~ with SIC Advisors (as described and for periods set forth in "Management Fee").

Members of our senior management also serve as principals of other investment managers affiliated with SIC Advisors that do, and may in the future, manage investment funds, accounts or other investment vehicles with investment objectives similar to ours.

We have entered into a dealer manager agreement with SC Distributors, LLC who receives a dealer manager fee of up to 2.50% of gross proceeds raised in the offering. An affiliated entity of SC Distributors, LLC owns an equity interest in SIC Advisors, which provides the right to receive a fixed percentage of the management fees received by SIC Advisors.

On March 20, 2017, the Company, SIC Advisors LLC, and SC Distributors, LLC agreed to remove any dealer manager fee payable to SC Distributors, LLC by investors with respect to shares of common stock sold to investors under a placement agreement through a registered investment advisor. In connection with any such sales, SIC Advisors LLC has agreed to pay SC Distributors LLC a platform placement fee in an amount equal to 1.50% of the gross offering proceeds from such sales.

On June 15, 2017, the Company, SIC Advisors and SC Distributors LLC entered into the First Amendment to the Second Amended and Restated Dealer Manager Agreement (the “First Amendment”). The terms of the First Amendment became effective with respect to subscriptions of Class A shares submitted beginning on June 16, 2017. Pursuant to the First Amendment, the upfront selling commission was reduced from 7.00% of gross proceeds to up to 3.00% of gross proceeds and the dealer manager fee was reduced from 2.75% of gross proceeds to up to 2.50% of gross proceeds. Further, in connection with the sale of Class A shares by participating broker-dealers, SC Distributors LLC will reallow and pay participating broker-dealers up to: (a) 3.00% of the gross proceeds from their allocated sales of Class A shares; and (b) 2.50% of the gross proceeds for dealer manager fees of Class A shares. In addition, SIC Advisors will pay the SC Distributors LLC, without reimbursement from the Company, an ongoing distribution and stockholder servicing fee that accrues daily in an amount equal to 1/365th of up to 1.0% of the net asset value per Class A share as of the end of each quarterly period following the date of purchase on a continuous basis from year to year for certain services.

We have entered into a license agreement with SIC Advisors under which SIC Advisors has agreed to grant us a non-exclusive, royalty-free license to use the name “Sierra” for specified purposes in our business. Under ~~this~~the license agreement, we will have a right to use the “Sierra” name, subject to certain conditions, for so long as SIC Advisors or one of its affiliates remains our investment adviser. Other than with respect to this limited license, we will have no legal right to the “Sierra” name.

In addition, we entered into the Expense Limitation Agreement with Medley Capital LLC (as described and for the period set forth in "Administrative Services").

Management Fee

We pay SIC Advisors a fee for its services under the Investment Advisory Agreement. The fee consists of two components: a base management fee and an incentive fee.

The base management fee is calculated at an annual rate of 1.75% of our gross assets and is payable quarterly in arrears. The incentive fee consists of:

	•	An incentive fee on net investment income (“subordinated incentive fee on income”) is calculated and payable quarterly in arrears and is based upon pre-incentive fee net investment income for the immediately preceding quarter. No subordinated incentive fee on income is payable in any calendar quarter in which pre-incentive fee net investment income does not exceed a quarterly return to stockholders of 1.75% per quarter on our net assets at the end of the immediately preceding fiscal quarter, or the preferred quarterly return. All pre-incentive fee net investment income, if any, that exceeds the preferred quarterly return, but is less than or equal to 2.1875% of net assets at the end of the immediately preceding fiscal quarter in any quarter, will be payable to SIC Advisors. We refer to this portion of our subordinated incentive fee on income as the catch up. It is intended to provide an incentive fee of 20% on pre-incentive fee net investment income when pre-incentive fee net investment income exceeds 2.1875% of net assets at the end of the immediately preceding quarter in any quarter. For any quarter in which our pre-incentive fee net investment income exceeds 2.1875% of net assets at the end of the immediately preceding quarter, the subordinated incentive fee on income shall equal 20% of the amount of pre-incentive fee net investment income, because the preferred return and catch up will have been achieved.
	•	A capital gains incentive fee will be earned on realized investments and shall be payable in arrears as of the end of each calendar year during which the Investment Advisory Agreement is in effect. If the Investment Advisory Agreement is terminated, the fee will become payable as of the effective date of such termination. The capital gains incentive fee is based on our realized capital gains on a cumulative basis from inception, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, which we refer to as “net realized capital gains.” The capital gains incentive fee equals 20% of net realized capital gains, less the aggregate amount of any previously paid capital gains incentive fee.

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On April 23, 2021, the Company entered into the Incentive Fee Waiver Agreement with SIC Advisors, pursuant to which SIC Advisors agreed to waive (i) 50% of any incentive fee on income is payable in any calendar quarter in which pre-incentive fee net investment income does not exceed a quarterly return to stockholders of 1.75% per quarter on our net assets at the end of the immediately preceding fiscal quarter, or the preferred quarterly return. All pre-incentive fee net investment income, if any, that exceeds the quarterly preferred return, but is less than or equal to 2.1875% of net assets at the end of the immediately preceding fiscal quarter in any quarter, will be payable to SIC ~~Advisors. We refer to this portion~~Advisors for any fiscal quarter during the period beginning with the fiscal quarter ending September 30, 2021 and the fiscal quarter ending June 30, 2022, and (ii) 50% of ~~our subordinated~~any incentive fee on ~~income as~~capital gains payable to SIC Advisors for the ~~catch up. It is intended to provide an~~

~~incentive fee~~fiscal year ending December 31, 2021. For the avoidance of ~~20% on pre-incentive fee net investment income when pre-incentive fee net investment income exceeds 2.1875% of net assets at~~doubt, the ~~end~~Incentive Fee Waiver Agreement does not amend the calculation of the ~~immediately preceding quarter~~incentive fees as set forth in ~~any quarter. For any quarter in which our pre-incentive fee net investment income exceeds 2.1875%~~the Investment Advisory Agreement. Other than the waiver contemplated by the Incentive Fee Waiver Agreement, the terms of net assets at the end of the immediately preceding quarter, the subordinated incentive fee on income shall equal 20% of the amount of pre-incentive fee net investment income, because the preferred return and catch up will have been achieved.

~~A capital gains incentive fee will be earned on realized investments and shall be payable in arrears as of the end of each calendar year during which~~ the Investment Advisory Agreement iswill remain in full force and effect. IfFollowing (i) the fiscal quarter ending June 30, 2022 with respect to the waiver granted by SIC Advisors on any incentive fee payable on income, and (ii) the fiscal year ending December 31, 2021 with respect to the waiver granted by SIC Advisors on any incentive fee payable on capital gains, unless otherwise extended by the Company and SIC Advisors, the Incentive Fee Waiver Agreement will terminate and the original terms of the Investment Advisory Agreement ~~is terminated, the fee~~ will become payable as of the effective date of such termination. The capital gains incentive fee is based on our realized capital gains on a cumulative basis from inception, computed net of all realized capital lossesbe in full force and unrealized capital depreciation on a cumulative basis, which we refer to as “net realized capital gains.” The capital gains incentive fee equals 20% of net realized capital gains, less the aggregate amount of any previously paid capital gains incentive fee.

effect.

Under the terms of the Investment Advisory Agreement, SIC Advisors bears all ~~organization~~organizational and offering expenses on our behalf. Since June 2, 2014, the date that we raised $300 million in gross proceeds in connection with the sale of shares of our common stock, SIC Advisors ~~has~~was no longer ~~been~~ obligated to bear, pay or otherwise be responsible for any ongoing ~~organization~~organizational and offering expenses on our behalf, and we ~~have been~~were responsible for paying or otherwise incurring all such ~~organization~~organizational and offering expenses. Pursuant to the terms of the Investment Advisory Agreement, we ~~have~~had agreed to reimburse SIC Advisors for any such organizational and offering expenses incurred by SIC Advisors not to exceed 1.25% of the gross subscriptions raised by us over the course of the offering period, which was initially scheduled to terminate two years from the initial offering date, unless extended. ~~Most recently, at a meeting held on March 1, 2017, our~~On July 2, 2018, the Company’s board of directors ~~approved another extension~~determined to terminate the Company’s offering effective as of ~~our offering~~July 31, 2018.

Pursuant to the Investment Advisory Agreement, SIC Advisors implements the Company’s business strategy on a day-to-day basis and performs certain services for ~~an additional year, which will extend~~ the ~~offering through April 17, 2018, unless further extended. Notwithstanding~~Company, subject to oversight by the ~~foregoing, in~~Company’s board of directors. SIC Advisors is responsible for, among other duties, determining investment criteria, sourcing, analyzing and executing investment transactions, asset sales, financings and performing asset management duties. Under the ~~event that organizational~~Investment Advisory Agreement, the Company has agreed to pay SIC Advisors a management fee for investment advisory and ~~offering expenses, together with sales commissions, the dealer manager~~management services consisting of a base management fee and any discounts paid to members of the Financial Industry Regulatory Authority, exceed 15% of the gross proceeds from the sale of shares of our common stock pursuant to our registration statement or otherwise at the time of the completion of our offering, then SIC Advisors shall be required to pay or, if already paid by us, reimburse us for amounts exceeding such 15% limit.

an incentive fee.

Critical Accounting Policies

This discussion of our expected operating plans is based upon our expected consolidated financial statements, which will be prepared in accordance with U.S. generally accepted accounting principles ~~generally accepted in the United States, or GAAP.~~("GAAP"). The preparation of these consolidated financial statements will require our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ. In addition to the discussion below, we will describe our critical accounting policies in the notes to our future consolidated financial statements.

Valuation of Investments

We apply fair value accounting to all of its financial instruments in accordance with the 1940 Act and ASC Topic 820 — Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC 820, we have categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy as identified below and discussed in Note 4.

Level 1 — Quoted prices are available in active markets for identical investments as of the reporting date. Publicly listed equities and publicly listed derivatives will be included in Level 1. In addition, securities sold, but not yet purchased and call options will be included in Level 1. We will not adjust the quoted price for these investments, even in situations where we hold a large position and a sale could reasonably affect the quoted price.

Level 2 — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. In certain cases, debt and equity securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices, market transactions in comparable investments, and various relationships between investments. Investments which are generally expected to be included in this category include corporate bonds and loans, convertible debt indexed to publicly listed securities, and certain over-the-counter derivatives.

Level 3 — Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant judgment or estimation. Investments that are expected to be included in this category are our private portfolio companies.

	•	Level 1 — Quoted prices are available in active markets for identical investments as of the reporting date. Publicly listed equities and publicly listed derivatives will be included in Level 1. In addition, securities sold, but not yet purchased and call options will be included in Level 1. We will not adjust the quoted price for these investments, even in situations where we hold a large position and a sale could reasonably affect the quoted price.
	•	Level 2 — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. In certain cases, debt and equity securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices, market transactions in comparable investments, and various relationships between investments. Investments which are generally expected to be included in this category include corporate bonds and loans, convertible debt indexed to publicly listed securities, and certain over-the-counter derivatives.
	•	Level 3 — Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant judgment or estimation. Investments that are expected to be included in this category are our private portfolio companies.

Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity specific measure. Therefore, when market assumptions are not readily available, our own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date.

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

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We use third-party valuation firms to assist the board of directors in the valuation of its portfolio investments. The valuation reports generated by the third-party valuation firms consider the evaluation of financing and sale transactions with third parties, expected cash flows and market based information, including comparable transactions, performance multiples, and movement in yields of debt instruments, among other factors. Based on market data obtained from the third-party valuation firms, we use a combined market yield analysis and an enterprise model of valuation. In applying the market yield analysis, the value of our loans are determined based upon inputs such as the coupon rate, current market yield, interest rate spreads of similar securities, the stated value of the loan, and the length to maturity. In applying the enterprise model, we use a waterfall analysis which takes into account the specific capital structure of the borrower and the related seniority of the instruments within the borrower’s capital structure into consideration. To estimate the enterprise value of the portfolio company, we weigh some or all of the traditional market valuation methods and factors based on the individual circumstances of the portfolio company in order to estimate the enterprise value. The methodologies 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 using an expected recovery model. We may estimate the fair value of warrants based on a model such as the Black-Scholes model or simulation models or a combination thereof.

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

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

~~conclusions are then documented and discussed with senior management; and~~

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

	•	our quarterly valuation process begins with each portfolio investment being initially valued by the valuation professionals;
	•	conclusions are then documented and discussed with senior management; and
	•	an independent valuation firm engaged by our board of directors prepares an independent valuation report for approximately one third of the portfolio investments each quarter on a rotating quarterly basis on non fiscal year-end quarters, such that each of these investments will be valued by an independent valuation firm at least twice per annum when combined with the fiscal year-end review of all the investments by independent valuation firms.

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

~~management reviews preliminary valuations and their own independent assessment;~~

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

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

	•	management reviews preliminary valuations and their own independent assessment;
	•	the audit committee of our board of directors reviews the preliminary valuations of senior management and independent valuation firms; and
	•	our board of directors discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of SIC Advisors, the respective independent valuation firms and the audit committee.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

~~The valuation procedures described are generally applied to~~ In addition, changes in the ~~loans underlying~~market environment (including the ~~TRS, except that such assets are not reviewed by independent third party valuation firms. We will value~~impact of COVID-19 on the ~~TRS in accordance with~~financial market), portfolio company performance, and other events may occur over the ~~TRS Agreement. Pursuant to the TRS Agreement, the value~~lives of the ~~TRS will~~investments that may cause the gains or losses ultimately realized on these investments to be ~~based on~~materially different than the increase or decrease in the value of the assets underlying the TRS, together with accrued interest income, interest expense and certain other expenses incurred under the TRS. The assets underlying the TRS will be valued by Citibank. Citibank will base its valuation on the indicative bid prices provided by an independent third-party pricing service. Bid prices reflect the highest price that market participants may be willing to pay. These valuations are sent to us for review and testing. Our board of directors will review and approve the value of the TRS, as well as the value of the assets underlying the TRS, on a quarterly basis as part of their quarterly determination of NAV. To the extent our board of directors has any questions or concerns regarding the valuation of the assets underlying the TRS, such valuation will be discussed or challenged pursuant to the terms of the TRS. For additional disclosures on the TRS, see “Off-Balance Sheet Arrangements.”

currently assigned.

Our investments in subordinated notes are carried at fair value, which is based on a discounted cash flow model. The discounted cash flow model models both the underlying collateral (“assets”) and the liabilities of the CLO capital structure. The discounted cash flow model uses a set of assumptions including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated cash flows of the assets. The discounted cash flow model distributes the asset cash flows to the liability structure based on the payment priorities and discounts them back using appropriate market discount rates based on discount rates for comparable CLOs. The assumptions are based on available market data as well as management estimates. Additional data is used to validate the results from the discounted cash flow method, such as analysis of relevant data observed in the CLO market, review of quotes, where available, recent acquisitions and observable transactions in the subordinated notes, among other factors.

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Revenue Recognition

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

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

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

Payment-in-Kind Interest

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

~~Organization and Offering Expenses~~

~~We have been responsible for all ongoing organization and offering expenses since June 2, 2014.~~

U.S. Federal Income Taxes

We have elected, and intend to qualify annually, to be treated for U.S. federal income tax purposes ~~and intend to qualify annually thereafter,~~ as a RIC under Subchapter M of the Code. As a RIC, we generally will not have to pay corporate-level U.S. federal income taxes on any ordinary income or capital gains that we distribute to our stockholders from our tax earnings and profits. To obtain and maintain our RIC tax treatment, we must, among other things, meet specified source-of-income and asset diversification requirements and distribute annually at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any.

Recent Developments

~~On October 10, 2017,~~July 27, 2021, our board of directors declared a series of ~~semi-monthly~~monthly distributions for ~~October, November~~July, August and ~~December 2017~~September 2021 in the amount of ~~$0.02667~~$0.01 per share. Stockholders of record as of each respective monthly record date will be entitled to receive the distribution. Below are the details for each respective distribution:

Record Date	Payment Date	Amount per share
July 29, 2021	July 30, 2021	$	0.01
August 30, 2021	August 31, 2021		0.01
September 29, 2021	September 30, 2021		0.01

The Company may terminate the Commitment Letter by written notice to Medley LLC, Medley Capital LLC, and SIC Advisors upon the occurrence of certain events, including, but not limited to, the entry by the Bankruptcy Court of an order materially inconsistent with the Term Sheet; the failure by the Bankruptcy Court to have entered an appropriate order by November 30, 2021; or the failure by SIC Advisors to comply with any covenant or agreement in the Investment Advisory Agreement dated April 5, 2012 between SIC Advisors and the Company.

Record Date Payment Date Amount per share
July 14 and 31, 2017 October 31, 2017 $ 0.02667
August 15 and 31, 2017 November 30, 2017 0.02667
September 15 and 30, 2017 December 29, 2017 0.02667

~~In addition, we have issued common shares and received gross proceeds~~Table of ~~$2 million subsequent to September 30, 2017 through November 6, 2017.~~Contents

Item3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates. The continued uncertainty with respect to the economic effects of the COVID-19 pandemic has introduced significant volatility in the financial markets, and the effects of this volatility could materially impact our market risks, including those listed below. For additional information concerning the potential impact of the COVID-19 pandemic on our business and our operating results, see Item 1A “Risk Factors -- We are subject to financial market risks, including changes in interest rates. See “Risk Factors - Risks Relating to Debt Financing - We are currently operating in a period of capital markets disruptions and economic uncertainty. Such market conditions may materially and adversely affect debt and equity capital markets, which may have a negative impact on our business, financial condition and operations.” in Part 1 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

As of ~~September~~June 30, ~~2017, 90.3%~~2021, 97.7% of our portfolio investments (based on fair value) paid floating interest rates, ~~9.7%~~while 2.3% paid fixed interest rates ~~5.1%~~and 13.3% were non-income producing ~~equity or other~~ investments ~~and the remaining 94.9%~~while 86.7% were income producing ~~equity~~investments. In connection with the COVID-19 pandemic, the U.S. Federal Reserve and other central banks have reduced certain interest rates and LIBOR has decreased. 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 LIBOR are not offset by a corresponding increase in the spread over LIBOR that we earn on any portfolio investments, a decrease in our operating expenses, including with respect to our income incentive fee, or ~~other investments. A~~a decrease in the interest rate of our floating interest rate liabilities tied to LIBOR. In contrast, a rise in the general level of interest rates can be expected to lead to higher interest rates applicable to any variable rate investments we hold and to declines in the value of any fixed rate investments we hold. In addition, a rise in interest rates may increase the likelihood that a portfolio company defaults on a loan. However, many of our variable rate investments provide for an interest rate floor, which may prevent our interest income from increasing until benchmark interest rates increase beyond a threshold amount. To the extent that a substantial portion of our investments may be in variable rate investments, an increase in interest rates beyond this threshold would make it easier for us to meet or exceed the hurdle rate applicable to the subordinated incentive fee on income under the Investment Advisory Agreement we have entered into with SIC Advisors, and may result in a substantial increase in our net investment income and to the amount of incentive fees payable to SIC Advisors with respect to our increased pre-incentive fee net investment income.

Under the terms of the TRS between Arbor and Citibank, Arbor will pay fees to Citibank at a floating rate based on LIBOR in exchange for the right to receive the economic benefit of a portfolio of assets having a maximum notional amount of $300 million.

Our interest expense will also be affected by changes in the published LIBOR rate in connection with the Alpine Credit Facility. See "Risks Relating to Debt Financing - Changes relating to the LIBOR calculation process may adversely affect the value of our ~~credit facilities.~~portfolio of LIBOR-indexed, floating-rate debt securities” in "Item 1 A. Risk Factors" of our annual report on Form 10-K for the fiscal year ended December 31, 2020. We expect any future credit facilities, total return swap agreements or other financing arrangements that we or any of our subsidiaries may enter into will also be based on a floating interest rate. As a result, we are subject to risks relating to changes in market interest rates. In periods of rising interest rates, when we or our subsidiaries have debt outstanding or financing arrangements in effect, our cost of funds would increase, which could reduce our net investment income, especially to the extent we hold fixed rate investments.

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

Based on our Consolidated Statement of Assets and Liabilities as of ~~September~~June 30, ~~2017,~~2021, the following table shows the approximate annual impact on the change in net interest income of hypothetical base rate changes in interest rates, assuming no changes in our investment portfolio and capital structure:

Change in
Basis point increase
Interest Income ⁽¹⁾
Interest Expense Net Interest Income
100 $ 11,055,230
$ 4,200,000
$ 6,855,230
200 19,715,474
8,400,000
11,315,474
300 28,375,718
12,600,000
15,775,718
400 37,035,962
16,800,000
20,235,962
500 45,696,206
21,000,000
24,696,206

~~(1) Assumes no defaults or prepayments by portfolio companies over the next twelve months.~~

	Change in
	Interest		Interest			Net Interest
Basis point increase/(decrease)	Income (1)		Expense			Income
300	$	14,241,953	$	3,726,000		$	10,515,953
200		5,532,710		2,484,000			3,048,710
100		785,392		1,242,000			(456,608	)
(100)		—		(138,023	)		138,023
(200)		—		(138,023	)		138,023
(300)		—		(138,023	)		138,023

(1)	Assumes no defaults or prepayments by portfolio companies over the next twelve months.

We expect that our long-term investments will be financed primarily with equity and debt. If deemed prudent, we may use interest rate risk management techniques in an effort to minimize our exposure to interest rate fluctuations. These techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition and results of operations. During the three months ended ~~September~~June 30, ~~2017,~~2021, we did not engage in interest rate hedging activities.

In addition, we may have risk regarding portfolio valuation. See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies-Valuation of Investments” and “Item 1A. Risk Factors.”

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Item4.Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Based on that evaluation, as of the end of the period covered by this quarterly report on Form 10-Q, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

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

PART II. Other Information

Item1. Legal Proceedings

~~There~~

From time to time, we are ~~no material pending~~involved in various legal proceedings, lawsuits and claims incidental to ~~which we or any~~the conduct of our ~~subsidiaries~~business. Our businesses are aalso subject to extensive regulation, which may result in regulatory proceedings against us. We are not currently party ~~or of which~~to any ~~of our property or any of our subsidiaries' property is the subject.~~material legal proceedings.

Item1A. Risk Factors

In addition to other information set forth in this report, you should carefully consider the “Risk Factors” discussed in our annual report on Form 10-K for the fiscal year ended December 31, ~~2016,~~2020, filed with the SEC on March ~~7, 2017,~~19, 2021, which could materially affect our business, financial condition and/or operating results. ~~There~~Other than the items disclosed below, there have been no material changes during the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 to the risk factors discussed in “Item 1A. Risk Factors” of our annual report on Form 10-K. Additional risks or uncertainties not currently known to us or that we currently deem to be immaterial also may materially affect our business, financial

condition and/or operating results.

You will have limited opportunities to sell your shares and, to the extent you are able to sell your shares under our share repurchase program beginning in the second quarter of 2021, you may not be able to recover the amount of your investment in our shares.

Our share repurchase program includes numerous restrictions that limit your ability to sell your shares. At the discretion of our board of directors, we may also use cash on hand, cash available from borrowings and cash from the sale of our investments as of the end of the applicable quarter to repurchase shares. We limit repurchases in each quarter to the lesser of (i) the number of shares of common stock that the Company can purchase with the proceeds received under the Company’s distribution reinvestment plan from the prior quarter (the prior two quarters in the case of the first share repurchase offer for the quarter ending June 30, 2021); or (ii) 2.5% of the weighted average number of shares of our common stock outstanding in the prior four calendar quarters. To the extent that the number of shares put to us for repurchase exceeds the number of shares that we are able to purchase, we will repurchase shares on a pro rata basis, not on a first-come, first-served basis. Further, we will have no obligation to repurchase shares if the repurchase would violate the restrictions on distributions under federal law or Maryland law, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency. These limits may prevent us from accommodating all repurchase requests made in any year. In addition, our board of directors may suspend, modify or discontinue the share repurchase program at any time. We will notify you of such developments: (i) in our periodic or current reports or (ii) by means of a separate mailing to you. Further, the share repurchase program may have many limitations and should not be relied upon as a method to sell shares promptly and at a desired price.

The timing of our repurchase offers pursuant to our share repurchase program may be at a time that is disadvantageous to our stockholders.

When we begin making quarterly repurchase offers pursuant to the share repurchase program, beginning in the second quarter of 2021, we may offer to repurchase shares at a price that is lower than the price that investors paid for shares in our offering. As a result, to the extent investors paid an offering price that includes the related sales load and to the extent investors have the ability to sell their shares pursuant to our share repurchase program, then the price at which an investor may sell shares, which will be at a price equal to our most recently disclosed net asset value per share immediately prior to the date of repurchase, may be lower than what an investor paid in connection with the purchase of shares in our offering.

We cannot predict how new tax legislation will affect us, our investments, or our shareholders, and any such legislation could adversely affect our business.

Legislative or other actions relating to taxes could have a negative effect on us. The rules dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the Internal Revenue Service and the U.S. Treasury Department. The Biden Administration has proposed significant changes to the existing U.S. tax rules, and there are a number of proposals in Congress that would similarly modify the existing U.S. tax rules. The likelihood of any such legislation being enacted is uncertain, but new legislation and any U.S. Treasury regulations, administrative interpretations or court decisions interpreting such legislation could significantly and negatively affect our ability to qualify for tax treatment as a RIC or the U.S. federal income tax consequences to us and our investors of such qualification, or could have other adverse consequences. Investors are urged to consult with their tax advisor regarding tax legislative, regulatory, or administrative developments and proposals and their potential effect on an investment in our common stock.

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Item2. Unregistered Sales of Equity Securities and Use of ~~Proceeds.~~

Proceeds

In June 2013, we commenced a share repurchase program pursuant to which ~~it intends to conduct~~we conducted quarterly share repurchases, of up to 2.5% of the weighted average number of outstanding shares in any 3-month period or 10% of the weighted average number of outstanding shares in any 12-month period. The purpose of the share repurchase program iswas to allow stockholders to sell their shares back to us at a price equal to the most recently disclosed NAV per share of our common stock immediately prior to the date of repurchase. Shares ~~will be~~were purchased from stockholders participating in the program on a pro rata basis. Unless our board of directors ~~determines~~determined otherwise, the number of shares to be repurchased during any calendar year ~~will be~~were limited to the proceeds received in association with the sale of shares of common stock under the distribution reinvestment plan. ~~See Note 13~~

Notwithstanding the suspension of the share repurchase program, our board of directors approved the repurchase of shares of our common stock from our stockholders who have requested repurchases in connection with such stockholder’s death or disability.

In addition, on April 28, 2021, our board of directors authorized a share repurchase program, pursuant to which the Company intends to conduct quarterly share repurchases, beginning in the second quarter of 2021, of the lesser of: (i) the number of shares of common stock, par value $0.0001 per share, that the Company can purchase with the proceeds received under the DRIP from the prior quarter; or (ii) 2.5% of the weighted average number of shares of common stock outstanding in the prior four calendar quarters (the “Share Repurchase Program”). Notwithstanding the foregoing, in connection with the first share repurchase offer for the quarter ending June 30, 2021, the Company intends to repurchase the number of Shares that the Company can purchase with the proceeds received under the DRIP from the prior two quarters. The purpose of the Share Repurchase Program is to allow stockholders to sell their shares of common stock back to the Company at a price equal to the most recently disclosed net asset value per share of the Company’s common stock immediately prior to the date of such share repurchase. Shares will be purchased from stockholders participating in the Share Repurchase Program on a pro rata basis. The Share Repurchase Program may be suspended, extended, modified or discontinued by our ~~consolidated financial statements for more information.~~

board of directors at any time.

During the three and six months ended June 30, 2021, the Company repurchased 962,031 and 964,482 of shares of certain shareholders pursuant to the Share Repurchase Program and due to death or disability, respectively. The following table provides information concerning our repurchases of shares of our common stock from our stockholders who have requested repurchases in connection with such stockholder’s death or disability during the three and six months ended ~~September~~June 30, ~~2017 pursuant to our share repurchase program:~~2021:

					Total Number of Shares		Maximum Number of
					Purchased as Part of		Shares that May Yet be
	Total Number of		Average Price Per		Publicly Announced		Purchased Under the
Period	Shares Purchased		Share Paid		Plans or Programs		Plans or Programs
January 1, 2021 - January 31, 2021		2,451	$	4.91		—		—
April 1, 2021 - April 30, 2021		384,363		5.12		—		—
June 1, 2021 - June 30, 2021		577,668		5.28		—		—
Total		964,482	$	5.22		—		—

Period
Total Number
of Shares Purchased
Average Price per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
July 1, 2017 through September 30, 2017 871,710 $8.02 870,337
— ⁽¹⁾

~~(1) A description of the maximum number of shares that may be purchased under our share repurchase program is included in the narrative preceding this table.~~

Item3. Defaults Upon Senior ~~Securities.~~

Securities

None.

Item4. Mine Safety ~~Disclosures.~~

Disclosures

Not Applicable.

Item5. Other Information

~~None.~~

Item6. ~~Exhibits.~~

~~EXHIBIT INDEX~~

Exhibits


3.1
~~Number~~	~~Description~~
~~3.1~~	Articles of Incorporation of the Registrant
3.2			Articles of Amendment of the Registrant
3.3			Articles of Amendment and Restatement of the Registrant
3.4			Second Articles of Amendment and Restatement of the Registrant
3.5			Form of Articles Supplementary Electing to be Subject to Subtitle 8 of the Maryland General Corporation Law
3.6			Form of Bylaws of the Registrant
10.1			~~Form of Subscription Agreements~~
~~10.2~~	Second Amended and Restated Distribution Reinvestment Plan
10.2		Investment Advisory Agreement
10.3			~~Investment Advisory~~Incentive Fee Waiver Agreement, dated April 23, 2021, between and between Sierra Income Corporation and SIC Advisors LLC
10.4			~~Form of Second Amended and Restated Dealer Manager Agreement~~
~~10.5~~	~~First Amendment to Second Amended and Restated Dealer Manager Agreement~~
~~10.6~~	~~Form of Participating Broker-Dealer Agreement (Included as Exhibit A to the Form of Amended and Restated Dealer Manager Agreement)~~
~~10.7~~	Custody Agreement
~~10.8~~ 10.5			Form of Administration Agreement
~~10.9~~ 10.6		Expense Limitation Agreement, dated April 23, 2021, by and between Sierra Income Corporation and Medley Capital LLC
10.7		Form of License Agreement
~~10.10~~ 10.8			~~Form of Escrow Agreement~~
~~10.11~~	~~Expense Support and Reimbursement Agreement~~
~~10.12~~	~~ISDA 2002 Master Agreement, together with the Schedule thereto and Credit Support Annex to such Schedule, each dated as of August 27, 2013, by and between Arbor Funding LLC and Citibank, N.A.~~
~~10.13~~	Amended and Restated Loan Agreement, dated as of September 29, 2017, by and among Alpine Funding LLC as borrower, JPMorgan Chase Bank, National Association, as administrative agent, the Financing Providers from time to time party thereto, SIC Advisors LLC, as the portfolio manager, and the Collateral Administrator, Collateral Agent and Securities Intermediary party thereto
~~10.14~~ 10.9			~~Fifth Amended and Restated Confirmation Letter Agreement, dated as of September 29, 2017, by and between Arbor Funding LLC and Citibank, N.A.~~
~~10.15~~	~~Fourth Amended and Restated Confirmation Letter Agreement, dated as of March 21, 2016, by and between Arbor Funding LLC and Citibank, N.A.~~
~~10.16~~	~~Amended and Restated Senior Secured Revolving Credit Agreement among the Company as borrower, the Lenders party thereto, and ING Capital LLC, as Administrative Agent, dated as of August 12, 2016~~
~~10.17~~	Guarantee, Pledge and Security Agreement among the Company, the Subsidiary Guarantors party thereto, ING Capital LLC, as Administrative Agent, each Financial Agent and Designated Indebtedness Holder party thereto and ING Capital LLC, as Collateral Agent, dated December 4, 2013
~~10.18~~	~~Control Agreement among the Company, ING Capital LLC, as collateral agent, and State Street Bank and Trust Company, as the Company’s Custodian, dated December 4, 2013~~



~~10.19~~	Loan Agreement, dated as of July 23, 2014, by and among Alpine Funding LLC, as company, JPMorgan Chase Bank, National Association, as administrative agent, the Financing Providers from time to time party thereto, SIC Advisors LLC, as the portfolio manager, and the Collateral Administrator, Collateral Agent and Securities Intermediary party thereto
~~10.20~~ 10.10		Sale and Contribution Agreement, dated as of July 23, 2014, by and between Sierra Income Corporation, as seller, and Alpine Funding LLC, as purchaser
~~10.21~~ 10.11		Portfolio Management Agreement, dated as of July 23, 2014, by and between Alpine Funding LLC, as borrower and SIC Advisors LLC, as portfolio manager
~~10.22~~ 10.12		Amendment No. 1 to the Loan Agreement, dated as of July 23, 2014, by and among Alpine Funding LLC, as borrower, JPMorgan Chase Bank, National Association, as administrative agent, the Financing Providers from time to time party thereto, SIC Advisors LLC, as the portfolio manager, and the Collateral Administrator, Collateral Agent and Securities Intermediary party thereto
~~10.23~~ 10.13		Limited Liability Company Operating Agreement of Sierra Senior Loan Strategy JV I LLC, dated March 27, 2015
~~11.1~~ 31.1		Computation of Per Share Earnings (included in the notes to the financial statements contained in this report) *
~~31.1~~	Certification by Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.2		Certification by Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1		Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*


99.1
		Commitment Letter, dated August 11, 2021, among Sierra Income Corporation, Medley LLC, Medley Capital LLC and SIC Advisors LLC*

* Filed herewith.

~~____________________________~~

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*	~~Filed herewith.~~

SIGNATURES

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


Dated: August 13, 2021
~~Dated: November 6, 2017~~	Sierra Income Corporation

		By	/s/ ~~Seth Taube~~Dean Crowe
			~~Seth Taube~~ Dean Crowe Chief Executive Officer (Principal Executive Officer)

		By	/s/ ~~Christopher M. Mathieu~~Richard T. Allorto, Jr.
			~~Christopher M. Mathieu~~ Richard T. Allorto, Jr. Chief Financial Officer (Principal Accounting and Financial Officer)



Maryland	45-2544432
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
~~280~~ 100 Park Avenue ~~6th Floor East,~~ New York, NY 10017
(Address of Principal Executive Offices)



Large accelerated filer	o	☐	Accelerated filer	o☐
Non-accelerated filer ~~(Do not check if a smaller reporting company)~~	x	☒	Smaller reporting company	o☐
Emerging growth company	x	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x



Part I. Financial Information
Item 1. Financial Statements			~~F-1~~
Consolidated Statements of Assets and Liabilities as of ~~September~~June 30, ~~2017~~2021 (unaudited) and December 31, ~~2016~~2020			F-1
Consolidated Statements of Operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016~~2020 (unaudited)			F-2
Consolidated Statements of Changes in Net Assets for the ~~nine~~three and six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016~~2020 (unaudited)			F-3
Consolidated Statements of Cash Flows for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2021 and ~~2016~~2020 (unaudited)			F-4
Consolidated Schedule of Investments as of ~~September~~June 30, ~~2017~~2021 (unaudited)			F-5
Consolidated Schedule of Investments as of December 31, ~~2016~~2020			~~F-14~~F-13
Notes to Consolidated Financial Statements (unaudited)			~~F-22~~F-21
Item 2. ~~Management’s~~Management’s Discussion and Analysis of Financial Condition and Results of Operations			1
Item 3. Quantitative and Qualitative Disclosures About Market Risk			1815
Item 4. Controls and Procedures			2016
Part II. Other Information
Item 1. Legal Proceedings			2016
Item 1A. Risk Factors			2016
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			2017
Item 3. Defaults Upon Senior Securities			2117
Item 4. Mine Safety Disclosures			2117
Item 5. Other Information			2117
Item 6. Exhibits			2117
SIGNATURES			2318



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



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



	September 30, 2017			December 31, 2016
ASSETS	(unaudited)
Investments at fair value
Non-controlled/non-affiliated investments (amortized cost of $969,097,460 and $921,626,572, respectively)	$	926,968,867		$	885,400,856
Controlled/affiliated investments (amortized cost of $145,702,585 and $104,855,866, respectively)	140,093,225			97,743,466
Investments at fair value	1,067,062,092			983,144,322
Cash and cash equivalents	82,699,636			99,400,794
Cash collateral on total return swap (Note 5)	68,000,000			79,620,942
Interest receivable from non-controlled/non-affiliated investments	9,093,911			10,251,559
Receivable due on total return swap (Note 5)	1,003,667			1,289,163
Receivable for Company shares sold	376,741			533,123
Interest receivable from controlled/affiliated investments	316,056			1,028,321
Unsettled trades receivable	278,837			368,819
Prepaid expenses and other assets	215,617			201,932
Due from affiliate (Note 7)	—			7,892,273
Total assets	$	1,229,046,557		$	1,183,731,248

LIABILITIES
Revolving credit facilities payable (net of deferred financing costs of $5,747,434 and $4,340,533, respectively) (Note 6)	$	414,252,566		$	385,659,467
Unsettled trades payable	38,922,992			466,727
Unrealized depreciation on total return swap (Note 5)	5,483,594			13,647,330
Base management fees payable (Note 7)	5,378,233			5,138,107
Accounts payable and accrued expenses	1,480,258			1,839,497
Incentive fees payable (Note 7)	1,323,999			1,405,419
Interest payable	780,037			1,230,530
Administrator fees payable (Note 7)	745,816			850,678
Deferred tax liability	429,991			244,622
Due to affiliate (Note 7)	—			135,784
Total liabilities	$	468,797,486		$	410,618,161

Commitments (Note 11)

NET ASSETS
Common shares, par value $0.001 per share, 250,000,000 common shares authorized, 96,300,123 and 94,666,418 common shares issued and outstanding, respectively	$	96,300		$	94,666
Capital in excess of par value	843,971,257			830,738,206
Accumulated distribution in excess of net realized gain/(loss) from investments and total return swap	(43,284,104		)	(20,333,057		)
Accumulated undistributed net investment income	13,030,556			19,756,740
Net unrealized depreciation on investments and total return swap, net of provision for taxes of $343,391 and $54,205, respectively	(53,564,938		)	(57,143,468		)
Total net assets	760,249,071			773,113,087
Total liabilities and net assets	$	1,229,046,557		$	1,183,731,248

NET ASSET VALUE PER COMMON SHARE	$	7.89		$	8.17



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
INVESTMENT INCOME	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Interest from investments
Non-controlled/non-affiliated investments:
Cash	$	22,258,477		$	20,819,609		$	62,982,816		$	60,057,210
Payment-in-kind	738,691			236,353			3,262,162			3,722,884
Controlled/affiliated investments:
Cash	2,529,894			1,602,501			7,006,228			4,186,500
Payment-in-kind	835,813			—			1,170,790			—
Total interest income	26,362,875			22,658,463			74,421,996			67,966,594
Fee income (Note 12)	1,228,131			2,464,034			4,068,295			5,157,787
Interest from cash and cash equivalents	49,732			26,164			85,263			47,834
Total investment income	27,640,738			25,148,661			78,575,554			73,172,215
EXPENSES
Base management fees (Note 7)	5,378,233			5,040,490			16,036,068			14,790,696
Interest expenses	4,434,712			3,433,081			12,177,674			10,095,690
General and administrative expenses	1,295,253			1,655,295			3,783,340			4,331,001
Incentive fees (Note 7)	1,323,999			2,372,355			1,872,805			7,876,060
Administrator expenses (Note 7)	745,817			780,166			2,333,968			1,997,067
Offering costs	545,959			703,075			1,367,343			2,074,035
Professional fees	415,045			943,864			1,647,704			1,809,418
Total expenses	14,139,018			14,928,326			39,218,902			42,973,967
Expense support reimbursement (Note 7)	—			(5,389,627		)	—			(16,093,129		)
Total expenses, net of expense support reimbursement	14,139,018			9,538,699			39,218,902			26,880,838
NET INVESTMENT INCOME	13,501,720			15,609,962			39,356,652			46,291,377
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) from non-controlled/non-affiliated investments	(5,275,413		)	(11,230,075		)	(21,215,145		)	(11,065,348		)
Net realized gain/(loss) on total return swap (Note 5)	3,134,709			761,010			(1,735,902		)	4,845,649
Net change in unrealized appreciation/(depreciation) on non-controlled/non-affiliated investments	(7,466,665		)	11,929,831			(5,902,877		)	4,202,318
Net change in unrealized appreciation/(depreciation) on controlled/affiliated investments	1,377,608			(1,567,498		)	1,503,040			(1,724,856		)
Net change in unrealized appreciation/(depreciation) on total return swap (Note 5)	(2,032,534		)	5,159,214			8,163,736			9,188,445
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments	148,949			172,128			(185,369		)	92,495
Net realized and unrealized gain/(loss) on investments	(10,113,346		)	5,224,610			(19,372,517		)	5,538,703
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	3,388,374		$	20,834,572		$	19,984,135		$	51,830,080
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE	$	0.04		$	0.23		$	0.21		$	0.58
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER COMMON SHARE	$	0.14		$	0.17		$	0.41		$	0.52
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (NOTE 10)	96,474,233			92,516,572			96,078,793			89,015,100
DISTRIBUTIONS DECLARED PER COMMON SHARE	$	0.16		$	0.20		$	0.48		$	0.60



	Nine Months Ended September 30,
	2017			2016
INCREASE/(DECREASE) FROM OPERATIONS	(unaudited)			(unaudited)
Net investment income	$	39,356,652		$	46,291,377
Net realized gain/(loss) on investments	(21,215,145		)	(11,065,348		)
Net realized gain/(loss) on total return swap (Note 5)	(1,735,902		)	4,845,649
Net change in unrealized appreciation/(depreciation) on investments	(4,399,837		)	2,477,462
Net change in unrealized appreciation/(depreciation) on total return swap (Note 5)	8,163,736			9,188,445
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments	(185,369		)	92,495
Net increase/(decrease) in net assets resulting from operations	19,984,135			51,830,080
SHAREHOLDER DISTRIBUTIONS (Note 2)
Distributions from net investment income	(46,082,836		)	(53,464,883		)
Distributions from return of capital	—			—
Distributions from net realized gains	—			—
Net decrease in net assets from shareholder distributions	(46,082,836		)	(53,464,883		)
COMMON SHARE TRANSACTIONS
Issuance of common shares, net of underwriting costs	14,278,662			88,652,295
Issuance of common shares pursuant to distribution reinvestment plan	20,964,661			25,356,219
Repurchase of common shares	(22,008,638		)	(23,367,870		)
Net increase in net assets resulting from common share transactions	13,234,685			90,640,644
Total increase/(decrease) in net assets	(12,864,016		)	89,005,841
Net assets at beginning of period	773,113,087			674,124,099
Net assets at end of period⁽¹⁾	$	760,249,071		$	763,129,940

Net asset value per common share	$	7.89		$	8.14
Common shares outstanding, beginning of period	94,666,418			82,623,649
Issuance of common shares	1,753,686			10,840,303
Issuance of common shares pursuant to distribution reinvestment plan	2,598,710			3,117,085
Repurchase of common shares	(2,718,691		)	(2,864,430		)
Common shares outstanding, end of period	96,300,123			93,716,607



Company⁽¹⁾	Industry	Type of Investment⁽¹⁸⁾	Maturity	Par Amount		Cost		Fair Value		% of Net Assets⁽²⁾
Non-controlled/non-affiliated investments– 121.9%										$	760,249,071
AAAHI Acquisition Corporation	Transportation: Consumer	Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor^{(3) (4)}	12/15/2021	$	7,143,867	$	7,143,867	$	7,143,867	0.9%
		Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor^{(3) (4) (5)}	12/14/2018	300,093		300,093		300,093		0.0%
				7,443,960		7,443,960		7,443,960
Advanced Diagnostic Holdings, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor^{(4) (8)}	12/11/2020	14,776,538		14,776,538		14,776,538		1.9%
				14,776,538		14,776,538		14,776,538
Alpha Media LLC	Media: Broadcasting & Subscription	Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor⁽⁸⁾	2/25/2022	6,643,240		6,411,924		6,432,649		0.8%
				6,643,240		6,411,924		6,432,649
American Dental Partners, Inc.	Healthcare & Pharmaceuticals	Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor^{(3) (4)}	9/25/2023	7,250,000		7,250,000		7,337,000		1.0%
				7,250,000		7,250,000		7,337,000
Amerijet Holdings, Inc.	Transportation: Cargo	Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor^{(4) (8)}	7/15/2021	15,468,750		15,468,750		15,742,547		2.1%
				15,468,750		15,468,750		15,742,547
AMMC CLO 17, Limited Series 2015-17A	Multi-Sector Holdings	Subordinated Note 18.446% effective yield^{(1) (6) (9)(10)}	11/15/2027	5,000,000		3,535,402		3,954,500		0.5%
				5,000,000		3,535,402		3,954,500
Anaren, Inc.	Aerospace & Defense	Senior Secured Second Lien Term Loan LIBOR + 8.250%, 1.000% Floor⁽³⁾	8/18/2021	10,000,000		9,938,799		10,000,000		1.3%
				10,000,000		9,938,799		10,000,000
Answers Finance, LLC	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor⁽⁸⁾	4/15/2021	1,291,760		1,291,760		1,291,760		0.2%
		Senior secured second lien term loans LIBOR + 4.400%, Cash, 0.100% Cap, 4.500% PIK⁽⁸⁾	9/15/2021	2,008,641		2,008,641		2,008,641		0.3%
		Equity/Warrants ⁽⁶⁾		—		5,426,955		5,426,195		0.7%
				3,300,401		8,727,356		8,726,596
APCO Holdings, Inc.	Automotive	Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor^{(4) (8)}	1/31/2022	4,209,932		4,112,112		4,209,932		0.6%
				4,209,932		4,112,112		4,209,932
Apidos CLO XXIV, Series 2016-24A	Multi-Sector Holdings	Subordinated Note 12.341% effective yield^{(1) (4) (6) (9) (10)}	7/20/2027	18,357,647		14,614,178		13,817,801		1.8%
				18,357,647		14,614,178		13,817,801
Asurion, LLC	Banking, Finance, Insurance & Real Estate	Senior Secured Second Lien Term Loan LIBOR + 6.000%, 1.000% Floor^{(3) (4)}	8/4/2025	5,950,000		5,950,000		6,069,000		0.8%
				5,950,000		5,950,000		6,069,000
Avantor Performance Materials Holdings, LLC	Chemicals, Plastics & Rubber	Senior Secured First Lien Term Loans LIBOR + 4.000%, 1.000% Floor^{(4) (8)}	3/11/2024	3,990,000		3,987,526		3,990,000		0.5%
		Senior Secured Second Lien Term Loans LIBOR + 8.250%, 1.000% Floor^{(4) (8)}	3/10/2025	1,000,000		1,000,000		1,020,000		0.1%
				4,990,000		4,987,526		5,010,000
Aviation Technical Services, Inc.	Aerospace & Defense	Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor^{(3) (4) (11)}	3/31/2022	25,000,000		25,000,000		25,000,000		3.3%
				25,000,000		25,000,000		25,000,000



	Nine Months Ended September 30, 2017				Nine Months Ended September 30, 2016
Source of Distribution	Distribution Amount		Percentage		Distribution Amount⁽¹⁾		Percentage
Ordinary income	$	46,082,836	100.0	%	$	53,464,883	100.0	%
Net realized gain	—		—		—		—
Return of capital	—		—		—		—
Distributions on a tax basis	$	46,082,836	100.0	%	$	53,464,883	100.0	%



Name of Investment ⁽³⁾	Type of Investment	Fair Value at December 31, 2016		Purchases/ (Sales) of Investments			Transfers In/(Out) of Investments		Net change in unrealized appreciation/ (depreciation)			Realized Gain/(Loss)		Fair Value at September 30, 2017		Income Earned
AAR Intermediate Holdings, LLC	Senior Secured First Lien Term Loans	$	—	$	(150,935	)	$	150,935	$	—		$	—	$	—	$	9,015
	Senior Secured First Lien Term Loans	—		—			3,144,481		—			—		3,144,481		146,648
	Senior Secured First Lien Term Loans	—		593,511			5,254,799		1,062,892			—		6,911,202		469,183
	Membership Units	—		—			—		—			—		—		—
Access Media Holdings, LLC	Senior Secured First Lien Term Loan	—		271,946			7,026,014		—			—		7,297,960		541,307
	Common Stock	—		—			—		—			—		—		—
	Preferred Equity Series A	—		—			1,400,000		(1,400,000		)	—		—		—
	Preferred Equity Series AA	—		52,500			647,500		(700,000		)	—		—		—
	Preferred Equity Series AAA	—		317,800					(158,900		)	—		158,900		—
Capstone Nutrition	Senior Secured First Lien Term Loans	16,246,819		(281,769		)	—		3,379,306			—		19,344,356		—
	Common Stock	—		—			—		—			—		—		—
	Common Stock, Class B	—		—			—		—			—		—		—
	Common Stock, Class C	—		—			—		—			—		—		—
MCM Capital Office Park Holdings LLC	Equity	7,500,000		(467,532		)	—		—			—		7,032,468		—
Nomida LLC⁽¹⁾	Senior Secured First Lien Term Loan	8,100,000		(4,400,000		)	—		—			—		3,700,000		611,806
	Equity	5,400,000		—			—		—			—		5,400,000		—
Sierra Senior Loan Strategy JV I LLC⁽²⁾	Equity	60,496,647		12,206,250			—		(615,954		)	—		72,086,943		5,512,500
TwentyEighty, Inc.	Senior Secured First Lien Term Loan	—		5,442,414			—		(79,390		)	—		5,363,024		350,142
	Senior Secured First Lien Term Loan	—		6,579,632			—		—			—		6,579,632		344,482
	Senior Secured First Lien Term Loan	—		3,059,173			—		15,086			—		3,074,259		183,364
	Senior Secured First Lien Term Loan	—		—			—		—			—		—		8,571
	Equity	—		—			—		—			—		—		—

Total		$	97,743,466	$	23,222,990		$	17,623,729	$	1,503,040		$	—	$	140,093,225	$	8,177,018



Name of Investment	Type of Investment	Fair Value at December 31, 2015		Purchases/ (Sales) of Investments		Transfers In/(Out) of Investments		Net change in unrealized appreciation/ (depreciation)			Realized Gain/(Loss)		Fair Value at September 30, 2016		Income Earned
Nomida LLC⁽¹⁾	Senior Secured First Lien Term Loan	$	8,100,042	$	—	$	—	$	14,700		$	—	$	8,114,742	$	616,500
	Equity	5,400,000		—		—		—			—		5,400,000		—
Sierra Senior Loan Strategy JV I LLC⁽²⁾	Equity	34,362,191		19,950,000		—		(1,739,556		)	—		52,572,635		3,570,000
Total		$	47,862,233	$	19,950,000	$	—	$	(1,724,856	)	$	—	$	66,087,377	$	4,186,500



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Selected Consolidated Statement of Operations Information:
Total investment income	$	4,257,065		$	2,770,260		$	11,616,536		$	6,993,705
Total expenses	(2,149,027		)	(1,390,816		)	(5,601,906		)	(3,479,173		)
Net change in unrealized appreciation/(depreciation) of investments	(29,971		)	938,125			(1,332,377		)	938,362
Net realized gain/(loss) of investments	516,140			(2,498,871		)	1,108,517			(2,406,857		)
Net income/(loss)	$	2,594,207		$	(181,302	)	$	5,790,770		$	2,046,037



Type of Investment ⁽¹⁾	Level 1		Level 2		Level 3		Total
Asset
Senior secured first lien term loans	$	—	$	4,930,200	$	548,498,771	$	553,428,971
Senior secured first lien notes	—		11,854,163		40,996,603		52,850,766
Senior secured second lien term loans	—		—		285,048,102		285,048,102
Subordinated notes	—		—		71,311,459		71,311,459
Warrants/equity	949,331		—		31,386,520		32,335,851
Money market fund	18,674,728		—		—		18,674,728
Total	$	19,624,059	$	16,784,363	$	977,241,455	$	1,013,649,877
Sierra Senior Loan Strategy JV I LLC							$	72,086,943
Total Investments, at fair value							$	1,085,736,820



Derivative Instrument-Long Exposure	Level 1		Level 2		Level 3		Total
Liability
Total return swap with Citibank, N.A.	$	—	$	—	$	5,483,594	$	5,483,594



Type of Investment⁽¹⁾	Level 1		Level 2		Level 3		Total
Asset
Senior secured first lien term loans	$	—	$	—	$	493,340,277	$	493,340,277
Senior secured first lien notes	—		25,540,638		46,429,960		71,970,598
Senior secured second lien term loans	—		—		260,008,735		260,008,735
Subordinated notes	—		—		55,185,590		55,185,590
Warrants/equity	1,262,666		—		40,879,809		42,142,475
Money market fund	22,966,981		—		—		22,966,981
Total	$	24,229,647	$	25,540,638	$	895,844,371	$	945,614,656
Sierra Senior Loan Strategy JV I LLC							$	60,496,647
Total Investments, at fair value							$	1,006,111,303



	Senior Secured First Lien Term Loans			Senior Secured First Lien Notes			Senior Secured Second Lien Term Loans			Subordinated Notes			Warrants/ Equity			Total Return Swap			Total
Balance, December 31, 2016	$	493,340,277		$	46,429,960		$	260,008,735		$	55,185,590		$	40,879,809		$	(13,647,330	)	$	882,197,041
Purchases	166,644,769			2,480,000			63,746,687			29,344,643			1,433,172			—			263,649,271
Sales	(108,227,784		)	(7,860,699		)	(30,398,116		)	(7,885,523		)	(9,488,187		)	—			(163,860,309		)
Transfers in	—			9,720,000			—			—			—			—			9,720,000
Transfers out	—			(8,622,686		)	—			—			—			—			(8,622,686		)
Amortization of discount/(premium)	703,060			67,631			119,917			—			—			—			890,608
Paid-in-kind interest income	4,432,952			—			—			—			—			—			4,432,952
Net realized gains/(losses)	(11,396,034		)	(1,851,063		)	(5,302,703		)	(107,130		)	(3,642,142		)	—			(22,299,072		)
Net change in unrealized appreciation/(depreciation)	3,001,531			633,460			(3,126,418		)	(5,226,121		)	2,203,868			8,163,736			5,650,056
Balance, September 30, 2017	$	548,498,771		$	40,996,603		$	285,048,102		$	71,311,459		$	31,386,520		$	(5,483,594	)	$	971,757,861
Change in net unrealized appreciation/(depreciation) in investments held as of September 30, 2017⁽¹⁾	$	(4,196,861	)	$	(1,262,262	)	$	(7,763,514	)	$	(5,127,949	)	$	(471,036	)	$	8,163,736		$	(10,657,886	)



	Gross Derivative Assets/ (Liabilities) Subject to MA			Derivative Amount Available for Offset		Net Amount Presented in the Consolidated Statements of Assets and Liabilities			Cash Collateral (received)/pledged ⁽¹⁾		Net Amount of Derivative Assets/(Liabilities)
September 30, 2017
Total Return Swap⁽¹⁾	$	(5,483,594	)	$	—	$	(5,483,594	)	$	5,483,594	$	—
December 31, 2016
Total Return Swap⁽¹⁾	$	(13,647,330	)	$	—	$	(13,647,330	)	$	13,647,330	$	—



	September 30, 2017							December 31, 2016
	Total Commitment		Balance Outstanding			Unused Commitment		Total Commitment		Balance Outstanding			Unused Commitment
ING Credit Facility	$	220,000,000	$	180,000,000		$	40,000,000	$	175,000,000	$	150,000,000		$	25,000,000
Alpine Credit Facility	300,000,000		240,000,000			60,000,000		300,000,000		240,000,000			60,000,000
Total before deferred financing costs	520,000,000		420,000,000			100,000,000		475,000,000		390,000,000			85,000,000
Unamortized deferred financing costs	—		(5,747,434		)	—		—		(4,340,533		)	—
Total borrowings outstanding, net	$	520,000,000	$	414,252,566		$	100,000,000	$	475,000,000	$	385,659,467		$	85,000,000



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
Interest expense related to the ING Credit Facility	$	1,621,142		$	1,061,353		$	4,086,172		$	3,111,502
Financing expenses related to the ING Credit Facility	234,636			190,439			664,086			526,813
Total Interest and financing expenses related to the ING Credit Facility	$	1,855,778		$	1,251,792		$	4,750,258		$	3,638,315

Weighted average outstanding debt balance of the ING Credit Facility	$	153,260,870		$	120,163,043		$	137,527,473		$	113,576,642
Weighted average interest rate of the ING Credit Facility	4.1		%	3.3		%	3.9		%	3.4		%



Quarter Ended	Amount of Expense Payment Obligation		Amount Repaid to SIC Advisors		Operating Expense Ratio⁽¹⁾		Annualized Distribution Rate⁽²⁾		Eligible to be Repaid Through
June 30, 2012	$	454,874	$	454,874	6.13	%	8.00	%	June 30, 2015
September 30, 2012	437,303		437,303		4.05	%	8.00	%	September 30, 2015
December 31, 2012	573,733		573,733		3.91	%	8.00	%	December 31, 2015
March 31, 2013	685,404		685,404		1.71	%	8.00	%	March 31, 2016
June 30, 2013	732,425		732,425		1.00	%	7.84	%	June 30, 2016
September 30, 2013⁽³⁾	1,262,848		1,078,500		0.83	%	7.84	%	September 30, 2016
December 31, 2013⁽³⁾	1,258,575		—		0.45	%	7.84	%	December 31, 2016
March 31, 2014⁽³⁾	1,177,686		135,784		0.45	%	7.80	%	March 31, 2017
June 30, 2014⁽³⁾	2,143,066		—		0.38	%	7.80	%	June 30, 2017
September 30, 2014⁽³⁾	1,717,593		123,025		0.38	%	7.77	%	September 30, 2017
December 31, 2014	1,585,471		—		0.47	%	8.00	%	December 31, 2017
March 31, 2015	1,993,518		—		0.43	%	8.00	%	March 31, 2018
June 30, 2015	2,148,462		—		0.31	%	8.00	%	June 30, 2018
September 30, 2015	627,752		—		0.32	%	8.25	%	September 30, 2018
December 31, 2015	3,974,895		—		0.40	%	8.65	%	December 31, 2018
March 31, 2016	5,204,896		—		0.37	%	8.89	%	March 31, 2019
June 30, 2016	5,634,390		—		0.29	%	8.89	%	June 30, 2019
September 30, 2016	5,389,627		—		0.45	%	8.84	%	September 30, 2019



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2017		2016		2017		2016
Net increase in net assets from operations	$	3,388,374	$	20,834,572	$	19,984,135	$	51,830,080
Weighted average common shares outstanding	96,474,233		92,516,572		96,078,793		89,015,100
Weighted average basic and diluted earnings per common share	$	0.04	$	0.23	$	0.21	$	0.58



Offer Date	Quantity Offered	Price per Share		Repurchase Date	Repurchase Quantity
6/4/2013	16,652	$	9.18	—	—
8/8/2013	32,627	9.13		9/27/2013	3,642
11/7/2013	60,966	9.14		12/19/2013	5,826
3/12/2014	120,816	9.18		4/25/2014	9,835
5/6/2014	199,476	9.20		6/13/2014	17,777
8/5/2014	294,068	9.25		9/12/2014	35,887
11/5/2014	411,894	9.22		12/24/2014	411,894
3/4/2015	535,571	8.97		4/24/2015	68,472
5/6/2015	620,420	8.98		6/24/2015	90,916
8/5/2015	727,654	8.96		9/29/2015	328,353
11/3/2015	853,688	8.56		12/23/2015	285,559
3/2/2016	959,436	8.16		4/29/2016	959,436
5/5/2016	1,005,447	8.04		6/30/2016	855,215
8/4/2016	1,048,412	8.11		9/28/2016	1,048,407
11/25/2016	1,077,370	8.14		12/27/2016	1,077,352
4/4/2017	871,815	8.17		5/4/2017	871,806
5/23/2017	876,277	8.10		6/23/2017	876,254
8/24/2017	870,360	8.02		9/25/2017	870,337



	2017			2016
Per Share Data:⁽¹⁾
Net asset value at beginning of period	$	8.17		$	8.16
Net investment income	0.40			0.52
Net realized gains/(losses) on investments and total return swap	(0.24		)	(0.07		)
Net unrealized appreciation/(depreciation) on investments and total return swap	0.04			0.13
Net increase in net assets	$	0.20		$	0.58
Distributions from return of capital	—			—
Distributions declared from net investment income⁽²⁾	(0.48		)	(0.60		)
Distributions from net realized capital gains	—			—
Total distributions to shareholders	$	(0.48	)	$	(0.60	)
Issuance of common shares above net asset value⁽³⁾	—			—
Net asset value at end of period	$	7.89		$	8.14
Total return based on net asset value^(4)(5)(6)	2.56		%	7.42		%
Portfolio turnover rate⁽⁶⁾	24.47		%	19.82		%
Shares outstanding at end of period	96,300,123			93,716,607
Net assets at end of period	$	763,961,571		$	763,129,940
Ratio/Supplemental Data (annualized):
Ratio of net investment income to average net assets⁽⁵⁾	6.90		%	9.07		%
Ratio of net expenses (including incentive fees) to average net assets⁽⁵⁾	6.71		%	4.53		%
Ratio of incentive fees to average net assets ⁽⁶⁾	0.24		%	1.10		%
Supplemental Data (annualized):
Asset coverage ratio per unit⁽⁷⁾	$	2,345		$	2,585
Percentage of non-recurring fee income⁽⁸⁾	6.75		%	6.98		%
Ratio of net expenses (excluding incentive fees) to average net assets	6.47		%	3.43		%
Ratio of interest related expenses to average net assets	2.11		%	1.88		%



	September 30, 2017				December 31, 2016
	Percentage of Total Investments		Weighted Average Current Yield for Total Investments		Percentage of Total Investments		Weighted Average Current Yield for Total Investments
Senior secured first lien term loans	50.0	%	9.1	%	48.1	%	9.5	%
Senior secured first lien notes	4.8		10.3		7.0		8.8
Senior secured second lien term loans	25.7		10.0		25.3		10.7
Subordinated notes	6.4		13.8		5.4		17.0
Sierra Senior Loan Strategy JV I LLC	6.5		10.5		5.9		10.3
Warrants/Equity	6.6		13.5		8.3		12.5
Total	100.0	%	10.1	%	100.0	%	10.4	%



Industry Classification	Investments at Fair Value⁽¹⁾		Percentage of Total Portfolio⁽¹⁾		Value of TRS Underlying Loans		Percentage of TRS Underlying Loans		Total Investments at Fair Value including the value of TRS Underlying Loans		Percentage of Total Portfolio Including the value of TRS Underlying Loans
Services: Business	$	159,677,377	15.0	%	$	16,975,860	8.0	%	$	176,653,237	13.8	%
Multi-Sector Holdings	143,398,402		13.4		—		—		143,398,402		11.2
Healthcare & Pharmaceuticals	85,276,518		8.0		24,771,298		11.6		110,047,816		8.6
Banking, Finance, Insurance & Real Estate	74,791,174		7.0		17,363,454		8.2		92,154,628		7.2
Aerospace & Defense	82,024,806		7.7		4,666,436		2.2		86,691,242		6.8
Hotel, Gaming & Leisure	63,094,334		5.9		13,749,427		6.5		76,843,761		6.0
High Tech Industries	53,978,631		5.1		20,172,985		9.5		74,151,616		5.8
Construction & Building	68,939,049		6.5		—		—		68,939,049		5.4
Energy: Oil & Gas	35,461,384		3.3		8,184,031		3.8		43,645,415		3.4
Transportation: Cargo	38,717,742		3.6		3,342,554		1.6		42,060,296		3.3
Media: Advertising, Printing & Publishing	25,682,164		2.4		13,622,981		6.4		39,305,145		3.1
Retail	29,526,830		2.8		7,305,477		3.4		36,832,307		2.9
Capital Equipment	14,660,612		1.4		20,288,939		9.5		34,949,551		2.7
Chemicals, Plastics & Rubber	28,718,889		2.7		4,974,684		2.3		33,693,573		2.6
Services: Consumer	8,631,157		0.8		18,313,597		8.6		26,944,754		2.1
Telecommunications	21,722,937		2.0		4,142,447		1.9		25,865,384		2.0
Automotive	18,884,012		1.8		2,920,500		1.4		21,804,512		1.7
Metals & Mining	21,127,331		2.0		—		—		21,127,331		1.7
Media: Broadcasting & Subscription	13,889,508		1.3		6,580,375		3.1		20,469,883		1.6
Beverage & Food	19,006,462		1.8		1,339,640		0.6		20,346,102		1.6
Containers, Packaging & Glass	19,277,831		1.8		—		—		19,277,831		1.5
Media: Diversified & Production	15,910,550		1.5		953,552		0.4		16,864,102		1.3
Wholesale	12,422,565		1.2		3,423,247		1.6		15,845,812		1.2
Consumer Goods: Durable	—		—		11,990,159		5.6		11,990,159		0.9
Transportation: Consumer	7,443,960		0.7		—		—		7,443,960		0.6
Consumer Goods: Non-durable	1,916,200		0.2		4,843,080		2.3		6,759,280		0.5
Utilities: Electric	—		—		2,950,175		1.4		2,950,175		0.2
Environmental Industries	2,881,667		0.3		—		—		2,881,667		0.2
Total	$	1,067,062,092	100.0	%	$	212,874,898	100.0	%	$	1,279,936,990	100.0	%



	September 30, 2017				December 31, 2016
Investment Credit Rating	Investments at Fair Value		Percentage		Investments at Fair Value		Percentage
1	$	35,899,629	3.4	%	$	57,356,293	5.8	%
2	872,752,279		81.8		798,629,992		81.2
3	104,027,251		9.7		77,762,796		7.9
4	34,825,963		3.3		35,294,284		3.6
5	19,556,970		1.8		14,100,957		1.4
Total	$	1,067,062,092	100.0	%	$	983,144,322	100.0	%



	Payment Due By Period
	Total		Less than 1 Year		1 - 3 Years		3 - 5 Years		More than 5 Years
ING Credit Facility	$	180,000,000	$	—	$	—	$	180,000,000	$	—
Alpine Credit Facility	240,000,000		—				240,000,000		—
Total Contractual Obligations	$	420,000,000	$	—	$	—	$	420,000,000	$	—



	Change in
Basis point increase	Interest Income ⁽¹⁾		Interest Expense		Net Interest Income
100	$	11,055,230	$	4,200,000	$	6,855,230
200	19,715,474		8,400,000		11,315,474
300	28,375,718		12,600,000		15,775,718
400	37,035,962		16,800,000		20,235,962
500	45,696,206		21,000,000		24,696,206



Period	Total Number of Shares Purchased	Average Price per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
July 1, 2017 through September 30, 2017	871,710	$8.02	870,337	— ⁽¹⁾