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The risks and uncertainties described below are not the only ones facing us.
−Removed: Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.
−Removed: If any of the following risks actually occur, our business, financial condition or results of operations could be materially adversely affected.
+Added: Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results, as well as the market price of our securities.
+Added: There have been no material changes during the three months ended June 30, 2020 to the risk factors previously disclosed in "Part I.
+Added: Risk Factors" in our annual report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on February 27, 2020, and in "Part II.
+Added: Risk Factors" in our quarterly report on Form 10-Q for the quarter ended March 31, 2020, filed with the SEC on April 30, 2020, which you should carefully consider.
+Added: If any of such risks actually occur, our business, financial condition or results of operations could be materially adversely affected.
If that happens, the market price of our securities could decline, and you may lose all or part of your investment.
−Removed: In addition to the other information set forth in this report, you should carefully consider the factors discussed in "Part I.
−Removed: Risk Factors" in our annual report on Form 10-K for the fiscal year ended December 31, 2019 , filed with the SEC on February 27, 2020 , which could materially affect our business, financial condition or operating results.
−Removed: Events outside of our control, including public health crises, could negatively affect our portfolio companies and our results of operations.
−Removed: Periods of market volatility have occurred and could continue to occur in response to pandemics or other events outside of our control.
−Removed: These types of events have adversely affected and could continue to adversely affect operating results for us and for our portfolio companies.
−Removed: For example, the COVID-19 pandemic 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.
−Removed: With respect to U.S.
−Removed: and global credit markets and the economy in general, this outbreak has resulted in, and until fully resolved is likely to continue to result in, the following (among other things):
−Removed: (i) restrictions on travel and the temporary closure of many corporate offices, retail stores, and manufacturing facilities and factories, resulting in significant disruption to the business of many companies, including supply chains and demand, as well as layoffs of employees;
−Removed: (ii) increased draws by borrowers on revolving lines of credit;
−Removed: (iii) increased requests by borrowers for amendments or waivers of their credit agreements to avoid default, increased defaults by borrowers and/or increased difficulty in obtaining refinancing;
−Removed: (iv) volatility in credit markets, including greater volatility in pricing and spreads;
−Removed: and (v) rapidly evolving proposals and actions by state and
−Removed: federal governments to address the problems being experienced by markets, businesses and the economy in general, which may not adequately address the problems being facing such persons.
−Removed: The pandemic is having, and any future continuation of the pandemic could have, an adverse impact on the markets and the economy in general.
−Removed: Although it is impossible to predict the precise nature and consequences of these events, or of any political or policy decisions and regulatory changes occasioned by emerging events or uncertainty on applicable laws or regulations that impact us and our portfolio companies and investments, it is clear that these types of events are impacting and will, for at least some time, continue to impact us and our portfolio companies.
−Removed: Any potential impact to our results of operations will depend to a large extent on future developments and new information that could emerge regarding the duration and severity of the COVID-19 pandemic and the actions taken by authorities and other entities to contain the spread or treat its impact, all of which are beyond our control.
−Removed: These potential impacts, while uncertain, could adversely affect our and our portfolio companies’ operating results.
−Removed: We are currently operating in a period of capital markets disruption and economic uncertainty.
−Removed: capital markets have experienced extreme volatility and disruption following the global outbreak of COVID-19 that began in December 2019.
−Removed: Some economists and major investment banks have expressed concern that the continued spread of the virus globally could lead to a world-wide economic downturn.
−Removed: Disruptions in the capital markets have increased the spread between the yields realized on risk-free and higher risk securities, resulting in illiquidity in parts of the capital markets.
−Removed: These and future market disruptions and/or illiquidity would be expected to have an adverse effect on our business, financial condition, results of operations and cash flows.
−Removed: Unfavorable economic conditions also would be expected to increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us.
−Removed: These events have limited and could continue to limit our investment originations, limit our ability to grow and have a material negative impact on our operating results and the fair values of our debt and equity investments.
−Removed: Our investments in CLOs may be riskier and less transparent to us and our stockholders than direct investments in the underlying companies.
−Removed: We have invested in structured products that include collateralized loan obligations ("CLOs").
−Removed: Generally, there may be less information available to us regarding the underlying debt investments held by CLOs than if we had invested directly in the debt of the underlying companies.
−Removed: As a result, our stockholders will not know the details of the underlying securities of the CLOs in which we will invest.
−Removed: Our CLO investments are subject to the risk of leverage associated with the debt issued by such CLOs and the repayment priority of senior debt holders in such CLOs.
−Removed: Our investments in portfolio companies may be risky, and we could lose all or part of our investment.
−Removed: Failure by a CLO vehicle in which we are invested to satisfy certain tests will harm our operating results.
−Removed: The failure by a CLO vehicle in which we invest to satisfy certain financial covenants, specifically those with respect to adequate collateralization and/or interest coverage tests, could lead to a reduction in its payments to us.
−Removed: In the event that a CLO vehicle failed these certain tests, holders of debt senior to us may be entitled to additional payments that would, in turn, reduce the payments we would otherwise be entitled to receive.
−Removed: Separately, we may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms, which may include the waiver of certain financial covenants, with a defaulting CLO vehicle or any other investment we may make.
−Removed: If any of these occur, it could materially and adversely affect our operating results and cash flows
−Removed: CLOs typically will have no significant assets other than their underlying senior secured loans;
−Removed: payments on CLO investments are and will be payable solely from the cash flows from such senior secured loans.
−Removed: CLOs typically will have no significant assets other than their underlying senior secured loans.
−Removed: Accordingly, payments on CLO investments are and will be payable solely from the cash flows from such senior secured loans, net of all management fees and other expenses.
−Removed: Payments to us as a holder of CLO junior securities are and will be made only after payments due on the senior secured notes, and, where appropriate, the junior secured notes, have been made in full.
−Removed: This means that relatively small numbers of defaults of senior secured loans may adversely impact our returns.
−Removed: Our CLO investments are exposed to leveraged credit risk.
−Removed: Generally, we are in a subordinated position with respect to realized losses on the senior secured loans underlying our investments in CLOs.
−Removed: The leveraged nature of CLOs, in particular, magnifies the adverse impact of senior secured loan defaults.
−Removed: CLO investments represent a leveraged investment with respect to the underlying senior secured loans.
−Removed: Therefore, changes in the market value of the CLO investments could be greater than the change in the market value of the underlying senior secured loans, which are subject to credit, liquidity and interest rate risk.
−Removed: There is the potential for interruption and deferral of cash flow from CLO investments.
−Removed: If certain minimum collateral value ratios and/or interest coverage ratios are not
−Removed: met by a CLO, primarily due to senior secured loan defaults, then cash flow that otherwise would have been available to pay distributions to us on our CLO investments may instead be used to redeem any senior notes or to purchase additional senior secured loans, until the ratios again exceed the minimum required levels or any senior notes are repaid in full.
−Removed: This could result in an elimination, reduction or deferral in the distribution and/or principal paid to the holders of the CLO investments, which would adversely impact our returns.
−Removed: We will have no influence on management of underlying investments managed by non-affiliated third party CLO collateral managers.
−Removed: We are not responsible for and have no influence over the asset management of the portfolios underlying the CLO investments we hold as those portfolios are managed by non-affiliated third party CLO collateral managers.
−Removed: Similarly, we are not responsible for and have no influence over the day-to-day management, administration or any other aspect of the issuers of the individual securities.
−Removed: As a result, the values of the portfolios underlying our CLO investments could decrease as a result of decisions made by third party CLO collateral managers.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.