What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2020-11-16 compared with 2020-08-13 · 95 added, 111 removed, 370 unchanged (36% of the section changed)

90 unchanged sentences

We do, however, expect that it will continue to have a negative impact on our business and the financial condition of our portfolio companies.

Portfolio Investment Activity for the Three Months Ended June 30, 2020 and 2019 and the Year Ended December 31, 2019

The following table summarizes our investment activity, excluding short term investments and PIK securities, for the three months ended June 30, 2020 and 2019 and the year ended December 31, 2019:

Portfolio Investment Activity for the Three Months Ended September 30, 2020 and 2019 and the Year Ended December 31, 2019

The following table summarizes our investment activity, excluding short term investments and PIK securities, for the three months ended September 30, 2020 and 2019 and the year ended December 31, 2019:

Three Months Ended

June 30, Year Ended

September 30, Year Ended December 31,

Net Investment Activity 2020 2019 2019

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Net portfolio activity $ (41,024) $ (47,711) $ (104,905)

The following tables summarize the composition of our investment portfolio at amortized cost and fair value as of June 30, 2020, December 31, 2019 and June 30, 2019:

June 30, 2020

The following tables summarize the composition of our investment portfolio at amortized cost and fair value as of September 30, 2020, December 31, 2019 and September 30, 2019:

September 30, 2020

Investments Cost(1) Investments Fair

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(3) The gross annual portfolio yield does not represent and may be higher than an actual investment return to shareholders because it excludes our expenses and all sales commissions and dealer manager fees and does not consider the cost of leverage.

June 30, 2019

Investments Cost(1) Investments Fair Value Percentage of

September 30, 2019

Investments Cost(1) Investments Fair

Value Percentage of

Senior secured first lien debt $ 1,473,789 $ 1,417,752 80.9 %

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The following table summarizes the composition of our investment portfolio by the type of interest rate as of June 30, 2020 and December 31, 2019, excluding short term investments of $31,668 and $29,527, respectively:

June 30, 2020 December 31, 2019

The following table summarizes the composition of our investment portfolio by the type of interest rate as of September 30, 2020 and December 31, 2019, excluding short term investments of $53,024 and $29,527, respectively:

September 30, 2020 December 31, 2019

Interest Rate Allocation Investments Cost Investments Fair

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Fixed interest rate investments 93,759 91,761 6.0 % 66,460 65,233 3.8 %

Non-income producing equity 54,130 34,724 2.2 % 51,887 45,213 2.6 %

Other income producing investments 34,834 31,089 2.0 % 30,822 30,505 1.8 %

Total investments $ 1,711,784 $ 1,540,060 100.0 % $ 1,797,549 $ 1,735,545 100.0 %

The following table summarizes the composition of our investment portfolio by the type of interest rate as of June 30, 2019, excluding short term investments of $33,740.

June 30, 2019

Interest Rate Allocation Investments Cost Investments Fair Value Percentage of Investment Portfolio

Floating interest rate investments $ 1,772,038 $ 1,713,487 94.2 %

Fixed interest rate investments 46,656 41,393 2.3 %

Non-income producing investments 65,733 43,922 2.9 % 51,887 45,213 2.6 %

Other income producing investments 34,133 30,362 2.0 % 30,822 30,505 1.8 %

Non-income producing equity 33,350 28,955 1.6 %

Total investments $ 1,636,427 $ 1,516,881 100.0 % $ 1,797,549 $ 1,735,545 100.0 %

The following table shows the composition of our investment portfolio by industry classification and the percentage, by fair value, of the total assets in such industries as of June 30, 2020, December 31, 2019 and June 30, 2019:

June 30, 2020 December 31, 2019 June 30, 2019

The following table shows the composition of our investment portfolio by industry classification and the percentage, by fair value, of the total assets in such industries as of September 30, 2020, December 31, 2019 and September 30, 2019:

September 30, 2020 December 31, 2019 September 30, 2019

Industry Classification Investments at

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Business 178,464 11.8 % 191,126 11.0 % 217,200 12.4 %

Diversified & Production 137,214 8.9 % 206,159 11.9 % 138,413 7.6 %

Chemicals, Plastics & Rubber 126,763 8.4 % 102,906 5.9 % 90,544 5.2 %

Diversified & Production 115,887 7.6 % 206,159 11.9 % 197,487 11.3 %

Advertising, Printing & Publishing 112,613 7.4 % 120,810 7.0 % 129,763 7.4 %

Consumer 84,331 5.6 % 94,058 5.4 % 116,852 6.7 %

High Tech Industries 69,872 4.5 % 60,197 3.5 % 96,807 5.3 %

Retail 64,572 4.2 % 53,599 3.1 % 80,585 4.4 %

Beverage, Food & Tobacco 67,078 4.4 % 68,440 3.9 % 66,109 3.8 %

Telecommunications 60,692 4.0 % 61,577 3.6 % 62,646 3.6 %

High Tech Industries 60,559 4.0 % 60,197 3.5 % 63,732 3.6 %

Capital Equipment 58,190 3.8 % 73,586 4.2 % 76,414 4.4 %

Retail 53,583 3.5 % 53,599 3.1 % 60,649 3.5 %

Diversified Financials 52,420 3.5 % 66,897 3.9 % 24,931 1.4 %

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Oil & Gas 31,173 2.1 % 48,742 2.8 % 49,513 2.8 %

Hotel, Gaming & Leisure 23,061 1.5 % 25,081 1.4 % 30,368 1.7 %

Consumer Goods:

Non-Durable 19,882 1.3 % 33,609 1.9 % 42,439 2.3 %

Forest Products & Paper 20,305 1.3 % 24,217 1.4 % 24,605 1.4 %

Consumer Goods:

Durable 18,900 1.2 % 31,705 1.8 % 31,381 1.7 %

Non-Durable 20,153 1.3 % 33,609 1.9 % 41,832 2.4 %

Hotel, Gaming & Leisure 19,091 1.3 % 25,081 1.4 % 30,972 1.8 %

Transportation:

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Automotive 9,873 0.7 % 10,013 0.6 % 8,021 0.4 %

Environmental Industries — — — — 2,999 0.2 %

Broadcasting & Subscription — — — — 248 —

Consumer Goods:

Durable 3,670 0.2 % 31,705 1.8 % 30,811 1.7 %

Subtotal/total percentage 1,516,881 100.0 % 1,735,545 100.0 % 1,752,094 100.0 %

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Our investment portfolio may contain senior secured investments that are in the form of lines of credit, delayed draw term loans, revolving credit facilities, or unfunded commitments, which may require us to provide funding when requested in accordance with the terms of the underlying agreements.

As of June 30, 2020, December 31, 2019 and June 30, 2019, our unfunded commitments amounted to $66,915, $83,694 and $70,968, respectively.

As of August 6, 2020, our unfunded commitments amount e d to $67,958.

Si nce these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for us.

As of September 30, 2020, December 31, 2019 and September 30, 2019, our unfunded co mmitments amounted to $60,521, $83,694 and $64,885, respectively.

As of November 12, 2020, our unfunded commitments amounted to $55,806.

Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for us.

Refer to the section “Commitments and Contingencies and Off-Balance Sheet Arrangements” for further details on our unfunded commitments.

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For investments rated 3, 4, or 5, CIM enhances its level of scrutiny over the monitoring of such portfolio company.

The following table summarizes the composition of our investment portfolio based on the 1 to 5 investment rating scale at fair value as of June 30, 2020, December 31, 2019 and June 30, 2019, excluding short term investments of $31,668, $29,527 and $33,740, respectively:

June 30, 2020 December 31, 2019 June 30, 2019

The following table summarizes the composition of our investment portfolio based on the 1 to 5 investment rating scale at fair value as of September 30, 2020, December 31, 2019 and September 30, 2019, excluding short term investments of $53,024, $29,527 and $23,060, respectively:

September 30, 2020 December 31, 2019 September 30, 2019

Investment Rating Investments

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Current Investment Portfolio

The following table summarizes the composition of our investment portfolio at fair value as of August 6, 2020:

The following table summarizes the composition of our investment portfolio at fair value as of November 12, 2020:

Investments Fair

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(2) The gross annual portfolio yield does not represent and may be higher than an actual investment return to shareholders because it excludes our expenses and all sales commissions and dealer manager fees and does not consider the cost of leverage.

Results of Operations for the Three Months Ended June 30, 2020 and 2019

Our results of operations for the three months ended June 30, 2020 and 2019 were as follows:

Results of Operations for the Three Months Ended September 30, 2020 and 2019

Our results of operations for the three months ended September 30, 2020 and 2019 were as follows:

Three Months Ended

September 30,

Investment income $ 38,887 $ 49,775

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Net change in unrealized appreciation (depreciation) on investments 52,178 (23,568)

Net change in unrealized appreciation on foreign currency translation — 113

Net increase in net assets resulting from operations $ 16,587 $ 8,147

Net increase (decrease) in net assets from operations $ 31,087 $ (2,222)

Investment Income

For the three months ended June 30, 2020 and 2019, we generated investment income of $35,808 and $49,519, respectively, consisting primarily of interest income on investments in senior secured debt and collateralized securities and structured products of 122 and 147 portfolio companies held during each respective period.

Our average investment portfolio size, excluding our short term investments, decreased $246,697, from $1,807,209 for the three months ended June 30, 2019 to $1,560,512 for the three months ended June 30, 2020, as (i) the non-income producing equity portion of our portfolio increased from $28,955 as of June 30, 2019 to $34,734 as of June 30, 2020 and (ii) the size of our investment portfolio as a whole decreased.

COVID-19 could cause liquidity issues at our portfolio companies, which could restrict their ability to make cash interest payments to us.

Additionally, we may experience full or partial losses on our investments, which may ultimately reduce our investment income in future periods.

For the three months ended September 30, 2020 and 2019, we generated investment income of $38,887 and $49,775, respectively, consisting primarily of interest income on investments in senior secured debt, and collateralized securities and structured products of 118 and 139 portfolio companies held during each respective period.

Our average investment portfolio size, excluding our short term investments, decreased $257,069, from $1,785,539 for the three months ended September 30, 2019 to $1,528,471 for the three months ended September 30, 2020.

Additionally, the decrease in LIBOR during the three months ended September 30, 2020 from the three month ended September also contributed to the decrease in interest income.

Operating Expenses

The composition of our operating expenses for the three months ended June 30, 2020 and 2019 was as follows:

The composition of our operating expenses for the three months ended September 30, 2020 and 2019 was as follows:

Three Months Ended

September 30,

Management fees $ 7,780 $ 9,029

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Total operating expenses $ 17,467 $ 28,113

The decrease in subordinated incentive fee on income was primarily the result of lower investment income generated on our investments during the three months ended June 30, 2020 as compared to the three months ended June 30, 2019.

The decrease in interest expense was primarily the result of lower LIBOR rates during the three months ended June 30, 2020 as compared to the three months ended June 30, 2019.

The decrease in interest expense was also the result of lower average borrowings on our financing arrangements during the three months ended June 30, 2020 as compared to the three months ended June 30, 2019, which also resulted in a decrease in total assets and therefore a decrease in management fees during the three months ended June 30, 2020.

The composition of our general and administrative expenses for the three months ended June 30, 2020 and 2019 was as follows:

The decrease in subordinated incentive fee on income was primarily the result of lower investment income generated on our investments during the three months ended September 30, 2020 as compared to the three months ended September 30, 2019.

The decrease in interest expense was primarily the result of lower LIBOR rates during the three months ended September 30, 2020 as compared to the three months ended September 30, 2019.

The decrease in interest expense was also the result of lower average borrowings on our financing arrangements during the three months ended September 30, 2020 as compared to the three months ended September 30, 2019, which also resulted in a decrease in total assets and therefore a decrease in management fees during the three months ended September 30, 2020.

The composition of our general and administrative expenses for the three months ended September 30, 2020 and 2019 was as follows:

Three Months Ended

Professional fees $ 613 $ 117

September 30,

Valuation expense $ 241 $ 168

Printing and marketing expense 241 17

Transfer agent expense 239 325

Accounting and administration costs 137 188

Accounting and administrative costs 224 191

Professional fees 198 131

Insurance expense 131 108

Director fees and expenses 113 119

Printing and marketing expense 103 34

Dues and subscriptions 124 82

Director fees and expenses 105 119

Other expenses 21 14

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Net Investment Income

Our net investment income totaled $13,916 and $21,661 for the three months ended June 30, 2020 and 2019, respectively.

A decrease in investment income during the three months ended June 30, 2020 as compared to the three months ended June 30, 2019 was partially offset by a decrease in operating expenses during the same period.

Our net investment income totaled $21,420 and $21,662 for the three months ended September 30, 2020 and 2019, respectively.

The decrease in net investment income was primarily due to a decrease in investment income, partially offset by a decrease in our subordinated incentive fees and interest expense for the three months ended September 30, 2020 as compared to the three months ended September 30, 2019.

Net Realized Loss on Investments and Foreign Currency

Our net realized loss on investments and foreign currency totaled ($10,986) and ($2,374) for the three months ended June 30, 2020 and 2019, respectively.

This change was driven primarily by realized losses on the restructure of certain investments during the three months ended June 30, 2020 as compared to the three months ended June 30, 2019.

Our net realized loss on investments and foreign currency totaled ($42,511) and ($316) for the three months ended September 30, 2020 and 2019, respectively.

This change was driven primarily by realized losses on the restructure of certain investments during the three months ended September 30, 2020 as compared to the three months ended September 30, 2019.

Net Change in Unrealized Appreciation (Depreciation) on Investments

The net change in unrealized appreciation (depreciation) on our investments totaled $13,657 and ($11,253) for the three months ended June 30, 2020 and 2019, respectively.

This change was driven primarily by unrealized losses on certain underperforming investments during the three months ended June 30, 2019.

Net Change in Unrealized Appreciation on Foreign Currency Translation

The net change in unrealized appreciation on foreign currency translation totaled $0 and $113 for the three months ended June 30, 2020 and 2019, respectively.

This change in unrealized depreciation was due to the realization of previously unrealized depreciation during the three months ended June 30, 2019.

Net Increase in Net Assets Resulting from Operations

For the three months ended June 30, 2020 and 2019, we recorded a net increase in net assets resulting from operations of $16,587 and $8,147, respectively, as a result of our operating activity for the respective periods.

Results of Operations for the Six Months Ended June 30, 2020 and 2019

Our results of operations for the six months ended June 30, 2020 and 2019 were as follows:

Six Months Ended

The net change in unrealized appreciation (depreciation) on our investments totaled $52,178 and ($23,568) for the three months ended September 30, 2020 and 2019, respectively.

This change was driven primarily by certain previously unrealized losses being realized during the three months ended September 30, 2020 and the continued recovery of loan prices.

Net Increase (Decrease) in Net Assets from Operations

For the three months ended September 30, 2020 and 2019, we recorded a net increase (decrease) in net assets resulting from operations of $31,087 and ($2,222), respectively, as a result of our operating activity for the respective periods.

Results of Operations for the Nine Months Ended September 30, 2020 and 2019

Our results of operations for the nine months ended September 30, 2020 and 2019 were as follows:

Nine Months Ended

September 30,

Investment income $ 120,443 $ 150,465

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Net change in unrealized depreciation on investments (57,542) (38,871)

Net (decrease) increase in net assets resulting from operations $ (89,325) $ 24,563

Net (decrease) increase in net assets from operations $ (58,238) $ 22,341

Investment Income

For the six months ended June 30, 2020 and 2019, we generated investment income of $81,556 and $100,690, respectively, consisting primarily of interest income on investments in senior secured debt and collateralized securities and structured products, and unsecured debt of 134 and 161 portfolio companies held during each respective period.

Our average investment portfolio size, excluding our short term investments, decreased $198,076, from $1,835,878 for the six months ended June 30, 2019 to $1,637,803 for the six months ended June 30, 2020, as (i) the non-income producing equity portion of our portfolio increased from $28,955 as of June 30, 2019 to $34,734 as of June 30, 2020 and (ii) the size of our investment portfolio as a whole decreased.

COVID-19 could cause liquidity issues at our portfolio companies, which could restrict their ability to make cash interest payments to us.

Additionally, we may experience full or partial losses on our investments, which may ultimately reduce our investment income in future periods.

For the nine months ended September 30, 2020 and 2019, we generated investment income of $120,443 and $150,465, respectively, consisting primarily of interest income on investments in senior secured debt and collateralized securities and structured products of 134 and 164 portfolio companies held during each respective period.

Our average investment portfolio size, excluding our short term investments, decre ased $176,221, from $1,802,434 for the nine months ended September 30, 2019 to $1, 626,213 for the nine months ended September 30, 2020, as the non-income producing equity portion of our portfolio increased from $34,625 as of September 30, 2019 to $115,204 as of September 30, 2020 and the size of our investment portfolio as a whole decreased.

Additionally, the decrease in LIBOR during the nine months ended September 30, 2020 from the nine month ended September also contributed to the decrease in interest income.

Operating Expenses

The composition of our operating expenses for the six months ended June 30, 2020 and 2019 was as follows:

Six Months Ended

The composition of our operating expenses for the nine months ended September 30, 2020 and 2019 was as follows:

Nine Months Ended

September 30,

Management fees $ 24,160 $ 27,597

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Total operating expenses $ 63,446 $ 85,603

The decrease in subordinated incentive fee on income was primarily the result of lower investment income generated on our investments during the six months ended June 30, 2020 as compared to the six months ended June 30, 2019.

The decrease in interest expense was primarily the result of lower LIBOR rates during the six months ended June 30, 2020 as compared to the six months ended June 30, 2019.

The decrease in interest expense was also the result of lower average borrowings on our financing arrangements during the six months ended June 30, 2020 as compared to the six months ended June 30, 2019, which also resulted in a decrease in total assets and therefore a decrease in management fees during the six months ended June 30, 2020.

The composition of our general and administrative expenses for the six months ended June 30, 2020 and 2019 was as follows:

Six Months Ended

The decrease in subordinated incentive fee on income was primarily the result of lower investment income generated on our investments during the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019.

The decrease in interest expense was primarily the result of lower LIBOR rates during the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019.

The decrease in interest expense was also the result of lower average borrowings on our financing arrangements during the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019, which also resulted in a decrease in total assets and therefore a decrease in management fees during the nine months ended September 30, 2020.

The composition of our general and administrative expenses for the nine months ended September 30, 2020 and 2019 was as follows:

Nine Months Ended

September 30,

Professional fees $ 1,108 $ 801

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Valuation expense 802 510

Accounting and administration costs 283 203

Director fees and expenses 229 240

Accounting and administrative costs 507 394

Printing and marketing expense 359 73

Insurance expense 354 312

Director fees and expenses 334 359

Dues and subscriptions 273 241

Printing and marketing expense 118 56

Due diligence fees — 61

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Net Investment Income

Our net investment income totaled $35,577 and $43,200 for the six months ended June 30, 2020 and 2019, respectively.

A decrease in investment income during the six months ended June 30, 2020 as compared to the six months ended June 30, 2019 was partially offset by a decrease in operating expenses during the same period.

Our net investment income totaled $56,997 and $64,862 for the nine months ended September 30, 2020 and 2019, respectively.

The decrease in net investment income was primarily due to a decrease in investment income during the nine months ended September 30, 2020, which was partially offset by a decrease in subordinated incentive fees and interest expense.

Net Realized Loss on Investments and Foreign Currency

Our net realized loss on investments and foreign currency totaled ($15,182) and ($3,334) for the six months ended June 30, 2020 and 2019, respectively.

This change was driven primarily by realized losses on the restructure of certain investments during the six months ended June 30, 2020 as compared to the six months ended June 30, 2019.

Our net realized loss on investments and foreign currency totaled ($57,693) and ($3,650) for the nine months ended September 30, 2020 and 2019, respectively.

This change was driven primarily by realized losses on the restructure of certain investments during the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019.

Net Change in Unrealized Depreciation on Investments

The net change in unrealized depreciation on our investments totaled ($109,720) and ($15,303) for the six months ended June 30, 2020 and 2019, respectively.

This change was driven primarily by the outbreak and spread of COVID-19 around the world during the six months ended June 30, 2020, which caused significant uncertainty and volatility in the U.S.

and global economies as well as in the financial and credit markets.

To the extent that the credit risk of our portfolio companies increases as a result of financial impacts due to COVID-19, we may incur additional unrealized depreciation in future periods.

Net (Decrease) Increase in Net Assets Resulting from Operations

For the six months ended June 30, 2020 and 2019, we recorded a net (decrease) increase in net assets resulting from operations of ($89,325) and $24,563, respectively, as a result of our operating activity for the respective periods.

The decrease was driven primarily by the outbreak and spread of COVID-19 around the world during the six months ended June 30, 2020, which caused significant uncertainty and volatility in the U.S.

and global economies as well as in the financial and credit markets.

This “Results of Operations” discussion should also be read in conjunction with “Recent Developments - COVID-19” above.

The net change in unrealized depreciation on our investments totaled ($57,542) and ($38,871) for the nine months ended September 30, 2020 and 2019, respectively.

This change was driven primarily by unrealized losses on certain underperforming investments during the nine months ended September 30, 2020.

Net (Decrease) Increase in Net Assets from Operations

For the nine months ended September 30, 2020 and 2019, we recorded a net (decrease) increase in net assets resulting from operations of ($58,238) and $22,341, respectively, as a result of our operating activity for the respective periods.

Net Asset Value per Share, Annual Investment Return and Total Return Since Inception

Our net asset value per share was $7.43 and $8.40 on June 30, 2020 and December 31, 2019, respectively.

After considering (i) the overall changes in net asset value per share, (ii) paid distributions of approximately $0.1829 per share during the six months ended June 30, 2020, and (iii) the assumed reinvestment of those distributions in accordance with our distribution reinvestment plan then in effect, the total investment return-net asset value was (9.47)% for the six month period ended June 30, 2020.

Our net asset value per share was $7.62 and $8.40 on September 30, 2020 and December 31, 2019, respectively.

After considering (i) the overall changes in net asset value per share, (ii) paid distributions of approximately $0.2712 per share during the nine months ended September 30, 2020, and (iii) the assumed reinvestment of those distributions in accordance with our distribution reinvestment plan then in effect, the total investment return-net asset value was (6.12)% for the nine month period ended September 30, 2020.

Total investment return-net asset value does not represent and may be higher than an actual return to shareholders because it excludes all sales commissions and dealer manager fees.

Total investment return-net asset value is a measure of the change in total value for shareholders who held our common stock at the beginning and end of the period, including distributions paid or payable during the period, and is described further in Note 13 to our consolidated financial statements included in this report.

Initial shareholders who subscribed to the offering in December 2012 with an initial investment of $10,000 and an initial purchase price equal to $9.00 per share (public offering price excluding sales load) have seen an annualized return of 5.34% and a cumulative total return of 48.05% through June 30, 2020 (see chart below).

Initial shareholders who subscribed to the offering in December 2012 with an initial investment of $10,000 and an initial purchase price equal to $10.00 per share (the initial public offering price including sales load) have seen an annualized return of 3.88% and a cumulative total return of 33.24% through June 30, 2020.

Initial shareholders who subscribed to the offering in December 2012 with an initial investment of $10,000 and an initial purchase price equal to $9.00 per share (public offering price excluding sales load) have seen an annualized return of 5.65% and a cumulative total return of 53.51% through September 30, 2020 (see chart below).

Initial shareholders who subscribed to the offering in December 2012 with an initial investment of $10,000 and an initial purchase price equal to $10.00 per share (the initial public offering price including sales load) have seen an annualized return of 4.23% and a cumulative total return of 38.16% through September 30, 2020.

Over the same time period, the S&P/LSTA Leveraged Loan Index, a primary measure of senior debt covering the U.S.

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(1) Cumulative performance:

December 17, 2012 to June 30, 2020

December 17, 2012 to September 30, 2020

The calculations for the Growth of $10,000 Initial Investment are based upon (i) an initial investment of $10,000 in our common stock at the beginning of the period, at a share price of $10.00 per share (including sales load) and $9.00 per share (excluding sales load), (ii) assumes reinvestment of monthly distributions in accordance with our distribution reinvestment plan then in effect, (iii) the sale of the entire investment position at the net asset value per share on the last day of the period, and (iv) the distributions declared and payable to shareholders, if any, on the last day of the period.

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On March 19, 2020, our co-chief executive officers determined to (i) change the timing of declaring distributions to shareholders from quarterly to monthly;

and (ii) temporarily suspend the payment of distributions to shareholders commencing with the month ending April 30, 2020, whether in cash or pursuant to our distribution reinvestment plan, as amended and restated.

On July 15, 2020, the board of directors determined to recommence the payment of distributions to shareholders.

As a result, on July 15, 2020, our co-chief executive officers declared regular monthly cash distributions of $0.04413 per share for August 2020.

Distributions in respect of future months will be reevaluated by management and our board of directors based on circumstances and expectations existing at the time of consideration.

On March 19, 2020, our board of directors, including the independent directors, determined to temporarily suspend our share repurchase program commencing with the second quarter of 2020.

and (ii) temporarily suspend the payment of distributions to shareholders commencing with the month ended April 30, 2020, whether in cash or pursuant to our distribution reinvestment plan, as amended and restated.

On July 15, 2020, the board of directors determined to recommence the payment of distributions to shareholders in August 2020.Distributions in respect of future months will be reevaluated by management and our board of directors based on circumstances and expectations existing at the time of consideration.

On March 19, 2020, our board of directors, including the independent directors, determined to temporarily suspend our share repurchase program commencing with the second quarter of 2020 and included the third quarter of 2020.

On November 13, 2020, the Company recommenced its share repurchase program for the fourth quarter of 2020.

Share repurchases for future quarters will be reevaluated by our board of directors based on circumstances and expectations existing at the time of consideration.

During the six months ended June 30, 2020, we indefinitely deferred the payment of subordinated incentive fees to CIM in the amount of $3,308.

As of June 30, 2020, December 31, 2019 and June 30, 2019, we had $31,668, $29,527 and $33,740 in short term investments, respectively, invested in a fund that primarily invests in U.S.

As of September 30, 2020 and November 12, 2020, we had $53,024 and $143,745 in short term investments, respectively, invested in a fund that primarily invests in U.S.

government securities.

JPM Credit Facility

As of June 30, 2020 and August 6, 2020, our outstanding borrowings under the Second Amended JPM Credit Facility were $646,035 and $632,535, respectively, and the aggregate unfunded principal amount in connection with the Second Amended JPM Credit Facility was $53,965 and $67,465, respectively.

F or a detailed discussion of our Second Amended JPM Credit Facility, refer to Note 8 to our consolidated financial statements included in this report.

As of June 30, 2020 and August 6, 2020, our outstanding borrowings under the Amended UBS Facility wer e $100,000 and no additional principal amount was available for borrowing under the amended UBS Facility.

As of September 30, 2020 and November 12, 2020, our outstanding borrowings under the Second Amended JPM Credit Facility were $625,000 and the aggregate unfunded principal amount in connection with the Second Amended JPM Credit Facility was $75,000.

For a detailed discussion of our Second Amended JPM Credit Facility, refer to Note 8 to our consolidated financial statements included in this report.

As of September 30, 2020 and November 12, 2020, our outstanding borrowings under the Amended UBS Facility were $100,000 and no additional principal amount was available for borrowing under the amended UBS Facility.

For a detailed discussion of our Amended UBS Facility, refer to Note 8 to our consolidated financial statements included in this report.

Unfunded Commitments

As of June 30, 2020 and August 6, 2020, our unfunded commitments amounted to $66,915 and $67,958, respectively.

As of September 30, 2020 and November 12, 2020, our unfunded commitments amounted to $60,521 and $55,806, respectively.

For a detailed discussion of our unfunded commitments, refer to Note 11 to our consolidated financial statements included in this report.

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See Note 8 to our consolidated financial statements for a more detailed description of the JPM Credit Facility.

On May 19, 2017, Murray Hill Funding II entered into the UBS Facility with UBS, as amended on December 1, 2017 and May 19, 2020.

On May 19, 2017, Murray Hill Funding II entered into the UBS Facility with UBS, as amended on December 1, 2017, May 19, 2020 and November 12, 2020.

See Note 8 to our consolidated financial statements for a more detailed description of the UBS Facility.

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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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis