What changed in this filing

/stocks — the workspaceLOADING

Item 3. Quantitative and Qualitative Disclosures About Market Risk

2020-11-09 compared with 2020-08-10 · 32 added, 31 removed, 52 unchanged (55% of the section changed)

3 unchanged sentences

changes in interest rates.

As of June 30, 2020, 64.2% of our portfolio investments (based on fair value) were debt investments paying variable interest rates and 10.6% were debt investments paying fixed interest rates while 11.6%

As of September 30, 2020, 65.3% of our portfolio investments (based on fair value) were debt investments paying variable interest rates and 8.6% were debt investments paying fixed interest rates while 16.0%

were other income producing investments, 7.3% consisted of non-income producing investments, and the remaining 2.8% consisted of investments on non-accrual status.

3 unchanged sentences

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, and may

result in a substantial increase in our net investment income and to the amount of incentive fees payable to the Advisor with respect to our increased

pre-incentive fee net investment income.

In recent weeks, the U.S.

Federal Reserve and other central banks have reduced certain interest rates in response to the

COVID-19 pandemic and market conditions.

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, and may result in a substantial increase in our net

investment income and to the amount of incentive fees payable to the Advisor with respect to our increased pre-incentive fee net investment income.

Earlier this year, the U.S.

Federal Reserve and other central

banks have reduced certain interest rates in response to the COVID-19 pandemic and market conditions.

A prolonged reduction in interest rates may reduce our net investment income.

Pursuant to the terms of the CCT Tokyo Funding Credit Facility, Locust Street Funding Credit Facility, Senior Secured Revolving Credit Facility and the 2019-1

Notes, we borrow at a floating rate based on a benchmark interest rate.

Under the indentures governing the 4.750% notes, the 5.000% notes, the 4.625% notes, the 4.125% notes and the 8.625% notes, we pay interest to the holders of such notes at a

To the extent that any present or future credit facilities or other financing arrangements that we or any of our subsidiaries enter into are based on a floating interest rate, we will be subject to risks relating to changes in market

interest rates.

In periods of rising interest rates when we or our subsidiaries have such debt outstanding, or financing arrangements in effect, our interest expense would increase, which could reduce our net investment income, especially to the

extent we hold fixed rate investments.

The following table shows the effect over a twelve month period of changes in interest

rates on our interest income, interest expense and net interest income, assuming no changes in the composition of our investment portfolio, including the accrual status of our investments, and our financing arrangements in effect as of June 30,

2020 (dollar amounts are presented in millions):

Pursuant to the terms of the CCT Tokyo Funding Credit Facility, Locust Street Funding Credit Facility, Senior Secured Revolving Credit

Facility and the 2019-1 Notes, we borrow at a floating rate based on a benchmark interest rate.

Under the indentures governing the 4.750% notes, the 5.000% notes, the 4.625% notes, the 4.125% notes and the

8.625% notes, we pay interest to the holders of such notes at a fixed rate.

To the extent that any present or future credit facilities or other financing arrangements that we or any of our subsidiaries enter into are based on a floating interest

rate, we will be subject to risks relating to changes in market interest rates.

In periods of rising interest rates when we or our subsidiaries have such debt outstanding, or financing arrangements in effect, our interest expense would increase,

which could reduce our net investment income, especially to the extent we hold fixed rate investments.

The following table

shows the effect over a twelve month period of changes in interest rates on our interest income, interest expense and net interest income, assuming no changes in the composition of our investment portfolio, including the accrual status of our

investments, and our financing arrangements in effect as of September 30, 2020 (dollar amounts are presented in millions):

Basis Point Change in Interest Rates

(Decrease) in

Change in Net

Interest Income

10 unchanged sentences

interest rates or hedging transactions could have a material adverse effect on our business, financial condition and results of operations.

During the six months ended June 30, 2020 and 2019, we did not engage in interest rate hedging

During the nine months ended September 30, 2020 and 2019, we did not engage in interest rate hedging

Foreign Currency Risk

2 unchanged sentences

dollars for inclusion in our consolidated financial statements.

The table below presents the effect that a 10% immediate, unfavorable change in the

foreign currency exchange rates (i.e.

The table below presents the effect that a 10% immediate, unfavorable change in the foreign currency exchange rates (i.e.

strengthening of the U.S.

dollar) would have on the fair value of our investments denominated in foreign currencies as of June 30, 2020, by foreign currency, all other valuation assumptions remaining

In addition, the table below presents the par value of our investments denominated in foreign currencies and the notional amount of foreign currency forward contracts in local currency in place as of June 30, 2020 to hedge against

foreign currency risks.

dollar) would have on the fair value of our investments

denominated in foreign currencies as of September 30, 2020, by foreign currency, all other valuation assumptions remaining constant.

In addition, the table below presents the par value of our investments denominated in foreign currencies and

the notional amount of foreign currency forward contracts in local currency in place as of September 30, 2020 to hedge against foreign currency risks.

Investments Denominated in Foreign Currencies

As of June 30, 2020

As of September 30, 2020

Economic Hedging

As of June 30, 2020

Cost in Local

As of September 30, 2020

Reduction in Fair

June 30, 2020

September 30, 2020

Change in Exchange

17 unchanged sentences

dollar and are adversely affected by a stronger U.S.

As of June 30, 2020, the net contractual amount of our foreign currency forward contracts totaled $30.0, all of which related to

As of September 30, 2020, the net contractual amount of our foreign currency forward contracts totaled $54.2, all of which related to

hedging of our foreign currency denominated debt investments.

As of June 30, 2020, we had outstanding borrowings denominated in foreign currencies of 206, CAD $66, £121 and A$7 under our Senior Secured Revolving Credit Facility.

As of September 30, 2020, we had outstanding borrowings denominated in foreign currencies of 167, CAD $74, £125 and A$6 under our Senior Secured Revolving Credit

In addition, we may have risk regarding portfolio valuation.

Managements Discussion and Analysis of

Financial Condition and Results of OperationsCritical Accounting PoliciesValuation of Portfolio Investments.

Managements Discussion and

Analysis of Financial Condition and Results of OperationsCritical Accounting PoliciesValuation of Portfolio Investments.

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 3. Quantitative and Qualitative Disclosures About Market Risk