SARATOGA INVESTMENT CORP. 10-K

ITEM 9A. CONTROLS AND PROCEDURES Evaluation of disclosure controls and procedures As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and our chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934). Based on that evaluation, our chief executive officer and our chief financial officer have concluded that our current disclosure controls and procedures are effective in facilitating timely decisions regarding required disclosure of any material information relating to us that is required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Management’s annual report on internal control over financial reporting The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act). Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external reporting purposes in accordance with U.S. GAAP. Internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that the receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with polices or procedures may deteriorate. Under the supervision and with participation of our Chief Executive Officer and Chief Financial Officer, the Company conducted an evaluation of the effectiveness of internal control over financial reporting based on the criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on the Company’s evaluation under the framework in Internal Control—Integrated Framework (2013), management concluded that the Company’s internal control over financial reporting was effective as of February 28, 2021. Changes in internal controls over financial reporting There have been no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) of Exchange Act) that occurred during our most recently completed fiscal year that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. ITEM 9B. OTHER INFORMATION None. 114 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Director and Executive Officer Information Directors The following table sets forth the names, ages and positions held by each of our directors, followed by a brief biography of each individual, including the business experience of each individual during the past five years and the specific qualifications that led to the conclusion that each individual should serve as a director. Name Age Position Director Since Term Expires Interested Directors Christian L. Oberbeck 61 Chairman of the Board, Chief Executive Officer and President 2010 2021 Henri J. Steenkamp 45 Chief Financial Officer, Chief Compliance Officer, Treasurer and Secretary 2020 2023 Independent Directors Steven M. Looney 71 Director 2007 2022 Charles S. Whitman III 79 Director 2007 2022 G. Cabell Williams 67 Director 2007 2023 Christian L. Oberbeck —Mr. Oberbeck has over 36 years of experience in leveraged finance, from distressed debt to private equity, and has been involved in originating, structuring, negotiating, consummating, managing and monitoring investments in a broad array of businesses. Mr. Oberbeck is the Managing Member of Saratoga Investment Advisors, LLC, the Company’s investment adviser and the Chairman of the Board, Chief Executive Officer and President of the Company. Mr. Oberbeck is also the Managing Partner of Saratoga Partners, a middle market private equity investment firm. Prior to assuming full management responsibility for Saratoga Partners in 2008, Mr. Oberbeck had co-managed Saratoga Partners since 1995. Mr. Oberbeck joined Dillon Read and Saratoga Partners from Castle Harlan, Inc., a corporate buyout firm which he had joined at its founding in 1987 and was a Managing Director, leading successful investments in manufacturing and financial services companies. Prior to that, he worked in the Corporate Development Group of Arthur Young and in corporate finance at Blyth Eastman Paine Webber. Mr. Oberbeck has been a director of numerous middle market companies. Mr. Oberbeck graduated from Brown University in 1982 with a BS in Physics and a BA in Mathematics. In 1985, he earned an MBA from Columbia University. Mr. Oberbeck’s qualifications as a director include his extensive experience in the investment and finance industry, as well as his intimate knowledge of the Company’s operations, gained through his service as an executive officer. Steven M. Looney —Mr. Looney is a Managing Director of Peale Davies & Co. Inc., a strategic advisory firm specializing in change management and revenue enhancement for middle market enterprises, and is a CPA and an attorney. Mr. Looney has served as a consultant and director to numerous companies in the healthcare, manufacturing and services industries. Between 2000 and 2005, he served as Senior Vice President and Chief Financial Officer of PCCI, Inc., a private IT staffing and outsourcing firm. Between 1992 and 2000, Mr. Looney worked at WH Industries as Chief Financial and Administrative Officer. Mr. Looney is a trustee of Excellent Education for Everyone, a nonprofit organization and founder of its affiliate, Education Moms. Mr. Looney graduated summa cum laude from the University of Washington with a B.A. degree in accounting and received a J.D. from the University of Washington School of Law where he was a member of the law review. He began his career at the United States Securities and Exchange Commission. Mr. Looney’s qualifications as director include his experience as a Managing Director of Peale Davies & Co., as Chief Financial and Administrative Officer of WH Industries and as General Counsel and Chief Compliance Officer of A.G. Becker-Warburg Paribas Becker, as well as his financial, accounting and legal expertise. Charles S. Whitman III —Mr. Whitman is senior counsel (retired) at Davis Polk & Wardwell LLP. Mr. Whitman was a partner in Davis Polk’s Corporate Department for 28 years, representing clients in a broad range of corporate finance matters, including shelf registrations, securities compliance for financial institutions, foreign asset privatizations, and mergers and acquisitions. From 1971 to 1973, Mr. Whitman served as Executive Assistant to three successive Chairmen of the SEC. Mr. Whitman graduated from Harvard College and graduated magna cum laude from Harvard Law School with a LL.B. Mr. Whitman also received an LL.M. from Cambridge University in England. Mr. Whitman’s qualifications as director include his 28 years of experience representing clients, including AT&T, Exxon Mobil, General Motors and BP, in securities matters as a partner in Davis Polk’s corporate department. 115 Henri J. Steenkamp —Mr. Steenkamp, 45 years old, is a Director of the Board and Chief Financial Officer, Chief Compliance Officer, Treasurer and Secretary of the Company and of Saratoga Investment Advisors LLC, the Company’s investment adviser. Prior to this, Mr. Steenkamp had served as the Chief Financial Officer of MF Global Holdings Ltd., a broker in commodities and derivatives, from April 2011. Prior to that, Mr. Steenkamp held the position of Chief Accounting Officer and Global Controller at MF Global for four years. He joined MF Global, then Man Financial, in 2006 as Vice President of External Reporting and Accounting Policy. After MF Global filed for bankruptcy protection in October 2011, he continued to serve as Chief Financial Officer of the holding company through January 2013. Before joining MF Global, Mr. Steenkamp spent eight years with PricewaterhouseCoopers (“PwC”), including four years in Transaction Services in its New York office, managing a variety of capital-raising transactions on a global basis. His focus was also on the SEC registration and public company filing process, including technical accounting. He spent four years with PwC in South Africa, where he served as an auditor primarily for SEC registrants and assisted South African companies as they went public in the U.S. Mr. Steenkamp is a chartered accountant and holds an honors degree in Finance. Mr. Steenkamp’s qualifications as director include his extensive experience in the investment and finance industry, as well as his intimate knowledge of the Company’s operations, gained through his service as the Company’s Chief Financial Officer, Chief Compliance Officer, Treasurer and Secretary. G. Cabell Williams —Mr. Williams has served as the Managing General Partner of Williams and Gallagher, a private equity partnership located in Chevy Chase, Maryland since 2004. Mr. Williams is a Partner, Senior Manager and Director of Farragut Capital Partners, which is a Mezzanine Fund based out of Chevy Chase, Maryland. In 2004, Mr. Williams concluded a 23-year career at Allied Capital Corporation, a business development company based in Washington, DC, which was acquired by Ares Capital Corporation in 2010. While at Allied, Mr. Williams held a variety of positions, including President, CIO and finally Managing Director following Allied’s merger with its affiliates in 1998. From 1991 to 2004, Mr. Williams either led or co-managed the firm’s Private Equity Group. For the nine years prior to 1999, Mr. Williams led Allied’s Mezzanine investment activities. For 15 years, Mr. Williams served on Allied’s Investment Committee where he was responsible for reviewing and approving all of the firm’s investments. Prior to 1991, Mr. Williams ran Allied’s Minority Small Business Investment Company. He also founded Allied Capital Commercial Corporation, a real estate investment vehicle. Mr. Williams has served on the board of directors of various public and private companies. Mr. Williams attended The Landon School, and graduated from Mercersburg Academy and Rollins College, receiving a B.S. in Business Administration from the latter. Mr. Williams’ qualifications as director include his 28 years of experience managing investment activities at Allied Capital, where he served in a variety of positions, including President, CIO and Managing Director. Code of Business Conduct and Ethics We have adopted a Code of Business Conduct and Ethics which applies to, among others, our executive officers, including our principal executive officer and principal financial officer, as well as every officer, director and employee of the Company. Requests for copies should be sent in writing to Saratoga Investment Corp., 535 Madison Avenue, New York, New York 10022. The Company’s Code of Business Conduct and Ethics is also available on our website at www.saratogainvestmentcorp.com. If we make any substantive amendment to, or grant a waiver from, a provision of our Code of Business Conduct and Ethics, we will promptly disclose the nature of the amendment or waiver on our website at www.saratogainvestmentcorp.com. Practices and Policies Regarding Hedging, Speculative Trading and Pledging of Securities Our insider trading policy generally prohibits the Company’s and our Investment Adviser’s directors, officers and employees from engaging in any short-term trading, short sales and other speculative transactions involving our securities, including buying or selling puts or calls or other derivative securities based on our securities. In addition, such persons are generally prohibited under our insider trading policy from entering into hedging or monetization transactions or similar arrangements, as well as pledging our securities in a margin account or as collateral for a loan, except in limited circumstances that are pre-approved by our chief compliance officer. Nomination of Directors There have been no material changes to the procedures by which stockholders may recommend nominees to our board of directors implemented since the filing of our Proxy Statement for our 2018 Annual Meeting of Stockholders. Audit Committee The current members of the audit committee are Steven M. Looney (Chairman), Charles S. Whitman III and G. Cabell Williams. The board of directors has determined that Mr. Looney is an “audit committee financial expert” as defined under Item 407 of Regulation S-K of the Securities Exchange Act of 1934 and that each of Messrs. Whitman and Williams are “financially literate” as required by NYSE corporate governance standards. All of these members are independent directors. 116 ITEM 11. EXECUTIVE COMPENSATION Executive Compensation Currently, none of our executive officers are compensated by us. We currently have no employees, and each of our executive officers is also an employee of Saratoga Investment Advisors. Services necessary for our business are provided by individuals who are employees of Saratoga Investment Advisors, pursuant to the terms of the Management Agreement and the Administration Agreement. Director Compensation Our independent directors receive an annual fee of $70,000. They also receive $3,000 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each board meeting and receive $1,500 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each committee meeting. In addition, the chairman of the audit committee receives an annual fee of $12,500 and the chairman of each other committee receives an annual fee of $6,000 for their additional services in these capacities. In addition, we have purchased directors’ and officers’ liability insurance on behalf of our directors and officers. Independent directors have the option to receive their directors’ fees in the form of our common stock issued at a price per share equal to the greater of net asset value or the market price at the time of payment. No compensation is paid to directors who are “interested persons.” The following table sets forth information concerning total compensation earned by or paid to each of our directors during the fiscal year ended February 28, 2021: Fees Earned or Paid in Cash Total Interested Directors Christian L. Oberbeck(1) $ - $ - Henri J. Steenkamp(1) - - Independent Directors Steven M. Looney $ 97,000 $ 97,000 Charles S. Whitman III 92,000 92,000 G. Cabell Williams 92,000 92,000 (1) No compensation was paid to directors who are interested persons of us as defined in the 1940 Act. Compensation Committee Interlocks and Insider Participation The current members of the compensation committee are G. Cabell Williams (Chairman), Steven M. Looney and Charles S. Whitman III. All of these members are independent directors. The compensation committee is responsible for overseeing the Company’s compensation policies generally and making recommendations to the board of directors with respect to incentive compensation and equity-based plans of the Company that are subject to board of directors approval, evaluating executive officer performance and reviewing the Company’s management succession plan, overseeing and setting compensation for the Company’s directors and, as applicable, its executive officers and, as applicable, preparing the report on executive officer compensation that SEC rules require to be included in our Annual Report on Form 10-K. Currently, none of our executive officers are compensated by the Company and as such the compensation committee is not required to produce a report on executive officer compensation for inclusion in our Annual Report on Form 10-K. During fiscal year ended February 28, 2021 none of the Company’s executive officers served on the board of directors (or a compensation committee thereof or other board committee performing equivalent functions) of any entities that had one or more executive officers serve on the compensation committee or on the board of directors. No current or past executive officers or employees of the Company or its affiliates serve on the compensation committee. 117 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The following table sets forth, as of May 4, 2021, the beneficial ownership of each current director, the nominees for director, the Company’s executive officers, each person known to us to beneficially own 5.0% or more of the outstanding shares of our common stock, and the executive officers and directors as a group. The percentage ownership is based on 11,199,995 shares of common stock outstanding as of May 4, 2021. Shares of common stock that are subject to warrants or other convertible securities currently exercisable or exercisable within 60 days thereof, are deemed outstanding for the purposes of computing the percentage ownership of the person holding these options or convertible securities, but are not deemed outstanding for computing the percentage ownership of any other person. Beneficial ownership is determined under the rules of the SEC and generally includes voting or investment power with respect to securities. To our knowledge, unless otherwise indicated in the footnotes to this table, the persons and entities named in the table have sole voting and sole investment power with respect to all shares beneficially owned. Unless otherwise indicated by footnote, the address for each listed individual is Saratoga Investment Corp., 535 Madison Avenue, New York, New York 10022. Name of Beneficial Owners Number of Shares of Common Stock Beneficially Owned Percent of Class Interested Directors Christian L. Oberbeck 1,535,792 (1) 13.7 % Henri J. Steenkamp 18,093 * Independent Directors Steven M. Looney 2,508 * Charles S. Whitman III 3,400 * G. Cabell Williams 69,940 * All Directors as a Group 1,629,733 14.6 % Owners of 5% or more of our common stock Black Diamond Capital Management, L.L.C.(2) 910,818 8.1 % Elizabeth Oberbeck(3) 549,183 4.9 % Thomas V. Inglesby 354,236 3.2 % Michael J. Grisius 167,215 1.5 % * Less than 1.0% Mr. Oberbeck, Mr. Grisius and Mr. Inglesby are affiliates who make up 18.4% of the ownership of SAR. (1) Includes 722,868 shares of common stock directly held by Mr. Oberbeck, 217,774 shares of common stock held by CLO Partners LLC, an entity wholly owned by Mr. Oberbeck, 44,869 shares of common stock directly held by Mr. Oberbeck's children, for which Mr. Oberbeck retains the voting rights, 1,100 shares of common stock directly held by Mr. Oberbeck's wife, for which Mr. Oberbeck retains the voting rights, and 549,183 shares of common stock directly held by Elizabeth Oberbeck. See footnote 3 below. (2) Based on information included in Amendment No. 9 to Schedule 13G filed by Black Diamond Capital Management, L.L.C. with the SEC on February 16, 2021. The address of Black Diamond Capital Management, L.L.C. is One Sound Shore Drive, Suite 200, Greenwich, CT 06830. (3) Based on information included in Amendment No. 2 to Schedule 13D filed on January 16, 2020, which amends and supplements the statements on Schedule 13D originally filed with the Securities and Exchange Commission on October 27, 2014 and amended by Amendment No. 1 on April 2, 2019. The original 13D was filed jointly by Christian L. Oberbeck, Elizabeth Oberbeck, Saratoga Investment Advisors and CLO Partners LLC on November 4, 2014. Pursuant to an Agreement Relating to Shares of Common Stock of Saratoga Investment Corp. (the “Transfer Agreement”), Christian L. Oberbeck transferred 744,183 shares of common stock beneficially owned by him to Elizabeth Oberbeck. Elizabeth Oberbeck has full ownership rights with respect to the shares, including without limitation, the right to (A) receive any cash and/or stock dividends and distributions paid on or with respect to the shares and (B) sell the shares in accordance with the provisions of the Transfer Agreement and receive all proceeds therefrom. However, pursuant to the terms of the Transfer Agreement, Christian L. Oberbeck has retained the right to vote the shares, except that Elizabeth Oberbeck has retained the right to vote the shares on all matters submitted to shareholders with respect to any matter that could give rise to dissenters or other rights of an objecting shareholder under Maryland General Corporation Law. The Transfer Agreement also contains a right of first refusal that requires Elizabeth Oberbeck to offer Christian L. Oberbeck the opportunity to purchase any shares of Common Stock owned by her prior to her intended sale of the shares. Any such purchases may be made either directly by Mr. Oberbeck or through entities affiliated with him. 118 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE Transactions with Related Persons We have entered into a Management Agreement with Saratoga Investment Advisors, LLC. We have also entered into a license agreement with Saratoga Investment Advisors, LLC, pursuant to which Saratoga Investment Advisors has agreed to grant us a non-exclusive, royalty-free license to use the name “Saratoga.” In addition, pursuant to the terms of the Administration Agreement, Saratoga Investment Advisors, LLC provides us with the office facilities and administrative services necessary to conduct our day-to-day operations. Mr. Oberbeck, our chief executive officer, is the primary investor in and controls Saratoga Investment Advisors, LLC. Review, Approval or Ratification of Transactions with Related Persons The Audit Committee of our board is required to review and approve any transactions with related persons (as such term is defined in Item 404 of Regulation S-K). Director Independence In accordance with rules of the NYSE, the board of directors annually determines the independence of each director. No director is considered independent unless the board of directors has determined that he or she has no material relationship with the Company. The Company monitors the status of its directors and officers through the activities of the Company’s Nominating and Corporate Governance Committee and through a questionnaire to be completed by each director no less frequently than annually, with updates periodically if information provided in the most recent questionnaire has changed. In order to evaluate the materiality of any such relationship, the board of directors uses the definition of director independence set forth in the NYSE Listed Company Manual. Section 303A.00 of the NYSE Listed Company Manual provides that business development companies, or BDCs, such as the Company, are required to comply with all of the provisions of Section 303A applicable to domestic issuers other than Sections 303A.02, the section that defines director independence. Section 303A.00 provides that a director of a BDC shall be considered to be independent if he or she is not an “interested person” of the Company, as defined in Section 2(a)(19) of the 1940 Act. Section 2(a)(19) of the 1940 Act defines an “interested person” to include, among other things, any person who has, or within the last two years had, a material business or professional relationship with the Company. The board of directors has determined that each of the directors is independent and has no relationship with the Company, except as a director and stockholder of the Company, with the exception of Messrs. Oberbeck and Grisius who are interested persons of the Company due to their positions as officers of the Company and its Investment Adviser. 119 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES Independent Registered Public Accounting Firm For the years ended February 28, 2021 and February 29, 2020, the Company incurred the following fees for services provided by Ernst & Young LLP, including expenses: Fiscal Year Ended February 28, 2021 Fiscal Year Ended February 29, 2020 Audit Fees $ 525,000 $ 647,000 Tax Fees 42,800 42,000 Total Fees $ 567,800 $ 689,000 In addition to the services listed above, Ernst & Young LLP provided audit services to the Company’s subsidiaries. For the year ended February 29, 2020 Ernst Young LLP was the auditor for Saratoga Investment Corp. CLO 2013-1, Ltd. The following are the related fees: Fiscal Year Ended February 28, 2021 Fiscal Year Ended February 29, 2020 CLO Audit Fees $ - $ 65,000 Tax Services for Company’s Subsidiaries - - All Other Fees 29,000 28,000 Total Fees $ 29,000 $ 93,000 Audit Fees . Audit fees include fees for services that normally would be provided by the accountant in connection with statutory and regulatory filings or engagements and that generally only the independent accountant can provide. In addition to fees for the audit of our annual consolidated financial statements, the audit of the effectiveness of our internal control over financial reporting and the review of our quarterly consolidated financial statements in accordance with generally accepted auditing standards, this category contains fees for comfort letters, statutory audits, consents, and assistance with and review of documents filed with the SEC. Audit Related Fees . Audit related fees are assurance related services that traditionally are performed by the independent accountant, such as attest services that are not required by statute or regulation. Tax Fees . Tax fees include services in conjunction with preparation of the Company’s tax return. All Other Fees . Fees for other services would include fees for products and services other than the services reported above. It is the policy of the audit committee to pre-approve all audit, review or attest engagements and permissible non-audit services to be performed by our independent registered public accounting firm. 120 PART IV ITEM 15. EXHIBITS, CONSOLIDATED FINANCIAL STATEMENT SCHEDULES The following documents are filed or incorporated by reference as part of this Annual Report: 1. Consolidated Financial Statements The following consolidated financial statements of the Company are filed herewith: Report of Independent Registered Public Accounting Firm F-2 Consolidated Statements of Assets and Liabilities as of February 28, 2021 and February 29, 2020 F-3 Consolidated Statements of Operations for the years ended February 28, 2021, February 29, 2020 and February 28, 2019 F-4 Consolidated Schedules of Investments as of February 28, 2021 and February 29, 2020 F-7 Consolidated Statements of Changes in Net Assets for the years ended February 28, 2021, February 29, 2020 and February 28, 2019 F-5 Consolidated Statements of Cash Flows for the years ended February 28, 2021, February 29, 2020 and February 28, 2019 F-6 Notes to Consolidated Financial Statements F-17 2. Financial Statement Schedules Reference is made to the Index to Other Financial Statements on page S-1. 121 3. Exhibits required to be filed by Item 601 of Regulation S-K The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the SEC: EXHIBIT INDEX Exhibit Number Description 3.1(a) Articles of Incorporation of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Form 10-Q for the quarterly period ended May 31, 2007). 3.1(b) Articles of Amendment of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed August 3, 2010). 3.1(c) Articles of Amendment of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed August 13, 2010). 3.2 Third Amended and Restated Bylaws of Saratoga Investment Corp (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 10-Q filed January 6, 2021). 4.1 Specimen certificate of Saratoga Investment Corp.’s common stock, par value $0.001 per share. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-169135, filed on September 1, 2010). 4.2 Registration Rights Agreement dated July 30, 2010 between GSC Investment Corp., GSC CDO III L.L.C., and the investors party thereto (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010). 4.3 Dividend Reinvestment Plan (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on September 24, 2014). 4.4 Form of Indenture by and between the Company and U.S. Bank National Association, as trustee (incorporated by reference to Saratoga Investment Corp.’s Pre-Effective Amendment No. 2 to the Registration Statement on Form N-2, File No. 333-186323 filed April 30, 2013). 4.5 Form of Second Supplemental Indenture between the Company and U.S. Bank National Association (incorporated by reference to Amendment No. 2 to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333- 214182, filed on December 12, 2016). 4.6 Form of Global Note (incorporated by reference to Exhibit 4.5 hereto, and Exhibit A therein). 4.7 Form of Third Supplemental Indenture between the Company and U.S. Bank National Association (incorporated by reference to Post-Effective Amendment No. 9 to the Registrant’s Registration Statement on Form N-2, File No. 333-216344, filed on August 28, 2018). 4.8 Form of Global Note (incorporated by reference to Exhibit 4.7 hereto, and Exhibit A therein). 4.9 Form of Articles Supplementary Establishing and Fixing the Rights and Preferences of Preferred Stock (incorporated by reference to Saratoga Investment Corp.’s registration statement on Form N-2 Pre-Effective Amendment No. 1, File No. 333-196526, filed on December 5, 2014). 4.10* Description of Securities. 4.11 Fourth Supplemental Indenture between the Company and U.S. Bank National Association, as trustee, relating to the 7.25% Note due 2025 (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 814-00732) filed on June 24, 2020). 4.12 Form of 7.25% Notes due 2025 (incorporated by reference to Exhibit 4.11 hereto). 4.13 Eighth Supplemental Indenture between the Company and U.S. Bank National Association, as trustee, relating to the 4.375% Note due 2026 (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 814-00732) filed on March 10, 2021). 122 4.14 Form of 4.375% Notes due 2026 (incorporated by reference to Exhibit 4.13 hereto). 10.1 Investment Advisory and Management Agreement dated July 30, 2010 between GSC Investment Corp. and Saratoga Investment Advisors, LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010). 10.2 Custodian Agreement dated March 21, 2007 between GSC Investment LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Form 10-Q for the quarterly period ended May 31, 2007). 10.3 Administration Agreement dated July 30, 2010 between GSC Investment Corp. and Saratoga Investment Advisors, LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010). 10.4 Trademark License Agreement dated July 30, 2010 between Saratoga Investment Advisors, LLC and GSC Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010). 10.5 Credit, Security and Management Agreement dated July 30, 2010 by and among GSC Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010). 10.6 Form of Indemnification Agreement between Saratoga Investment Corp. and each officer and director of Saratoga Investment Corp. (incorporated by reference to Amendment No. 2 to Saratoga Investment Corp.’s Registration Statement on Form N-2 filed on January 12, 2007). 10.7 Amendment No. 1 to Credit, Security and Management Agreement dated February 24, 2012 by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on February 29, 2012). 10.8 Amended and Restated Indenture, dated as of November 15, 2016, among Saratoga Investment Corp. CLO 2013-1, Ltd., Saratoga Investment Corp. CLO 2013-1, Inc. and U.S. Bank National Association. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-216344, filed on February 28, 2017). 10.9 Amended and Restated Collateral Management Agreement, dated October 17, 2013, by and between Saratoga Investment Corp. and Saratoga Investment Corp. CLO 2013-1, Ltd. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-196526, filed on December 5, 2014). 10.10 Amendment No. 2 to Credit, Security and Management Agreement dated September 17, 2014 by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on September 18, 2014). 10.11 Amendment No. 3 to Credit, Security and Management Agreement, dated May 18, 2017, by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on May 18, 2017). 10.12 Equity Distribution Agreement dated March 16, 2017, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc. and BB&T Capital Markets, a division of BB&T Securities, LLC (incorporated by reference to Saratoga Investment Corp.’s Post-Effective Amendment No. 1 to the Registration Statement on Form N-2, File No. 333-216344, filed on March 16, 2017). 10.13 Amendment No. 1 to the Equity Distribution Agreement dated October 12, 2017, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and FBR Capital Markets & Co. (incorporated by reference to Saratoga Investment Corp.’s Post-Effective Amendment No. 2 to the Registration Statement on Form N-2, File No. 333-216344, filed on October 12, 2017). 123 10.14 Amendment No. 2 to the Equity Distribution Agreement dated January 11, 2018, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and FBR Capital Markets & Co. (incorporated by reference to Saratoga Investment Corp.’s Post-Effective Amendment No. 3 to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333- 216344, filed on January 11, 2018). 10.15 Amendment No. 3 to the Equity Distribution Agreement dated October 16, 2018, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and B. Riley FBR, Inc. (incorporated by reference to Post-Effective Amendment No. 1 to the registrant’s Registration Statement on Form N-2, File No. 333-227116, filed on October 16, 2018). 10.16 Amendment No. 4 to the Equity Distribution Agreement dated July 11, 2019, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, and B. Riley FBR, Inc. (incorporated by reference to Post-Effective Amendment No. 5 to the registrant’s Registration Statement on Form N-2, File No. 333-227116, filed on July 12, 2019). 10.17 Amendment No. 5 to the Equity Distribution Agreement dated October 10, 2019, by and among Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Ladenburg Thalmann and Co. Inc., BB&T Capital Markets, a division BB&T Securities, LLC, and B. Riley FBR, Inc. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 10, 2019). 10.18 Amendment No. 4 to Credit, Security and Management Agreement, dated April 24, 2020, by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on April 29, 2020). 10.19 Amendment No. 5 to Credit, Security and Management Agreement, dated September 14, 2020, by and among Saratoga Investment Funding LLC, Saratoga Investment Corp., Saratoga Investment Advisors, LLC, Madison Capital Funding LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on September 17, 2020). 10.20 Amended and Restated Collateral Management Agreement, dated February 26, 2021, by and between Saratoga Investment Corp. and Saratoga Investment Corp. CLO 2013-1, Ltd. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on March 4, 2021). 10.21 Amended and Restated Collateral Administration Agreement, dated February 26, 2021, by and between Saratoga Investment Corp., Saratoga Investment Corp. CLO 2013-1, Ltd. and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on March 4, 2021). 11 Computation of Per Share Earnings (included in Note 11 to the consolidated financial statements contained in this report). 14 Code of Ethics of the Company adopted under Rule 17j-1 (incorporated by reference to Amendment No.7 to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-138051, filed on March 22, 2007). 21.1 List of Subsidiaries (Incorporated by reference to Saratoga Investment Corp.’s Annual Report on Form 10-K filed on May 6, 2020). 23.1* Consent of Ernst & Young LLP for Saratoga Investment Corp. 23.2* Consent of CohnReznick LLP for Saratoga Investment Corp. CLO 2013-1, Ltd. 31.1* Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 31.2* Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 32.1* Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) 32.2* Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) * Filed herewith ITEM 16. FORM 10-K SUMMARY None. 124 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SARATOGA INVESTMENT CORP. Date: May 5, 2021 By: /s/ CHRISTIAN L. OBERBECK Christian L. Oberbeck Chief Executive Officer By: /s/ HENRI J. STEENKAMP Henri J. Steenkamp Chief Financial Officer and Chief Compliance Officer KNOW ALL PERSONS BY THESE PRESENT, that each person whose signature appears below hereby constitutes and appoints Christian L. Oberbeck and Henri J. Steenkamp, and each of them (with full power to each of them to act alone), his true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him and in his name, place, and stead, in any and all capacities, to sign this report and any and all amendments thereto, and to file the same, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date /s/ CHRISTIAN L. OBERBECK Chairman of the Board of Directors, Chief Executive Officer May 5, 2021 Christian L. Oberbeck (Principal Executive Officer) /s/ HENRI J. STEENKAMP Chief Financial Officer (Principal Accounting Officer and May 5, 2021 Henri J. Steenkamp Principal Financial Officer), Member of the Board of Directors /s/ STEVEN M. LOONEY Member of the Board of Directors May 5, 2021 Steven M. Looney /s/ CHARLES S. WHITMAN III Member of the Board of Directors May 5, 2021 Charles S. Whitman III /s/ G. CABELL WILLIAMS Member of the Board of Directors May 5, 2021 Cabell Williams 125 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS PAGE Reports of Independent Registered Public Accounting Firm F-2 Consolidated Statements of Assets and Liabilities as of February 28, 2021 and February 29, 2020 F-3 Consolidated Statements of Operations for the years ended February 28, 2021, February 29, 2020 and February 28, 2019 F-4 Consolidated Statements of Changes in Net Assets for the years ended February 28, 2021, February 29, 2020 and February 28, 2019 F-5 Consolidated Statements of Cash Flows for the years ended February 28, 2021, February 29, 2020 and February 28, 2019 F-6 Consolidated Schedule of Investment for the year ended February 28, 2021, February 29, 2020 F-7 Notes to Consolidated Financial Statements F-17 F- 1 Report of Independent Registered Public Accounting Firm The Shareholders and the Board of Directors of Saratoga Investment Corp. Opinion on the Financial Statements We have audited the accompanying consolidated statements of assets and liabilities of Saratoga Investment Corp. (the “Company”), including the consolidated schedules of investments, as of February 28, 2021 and February 29, 2020, the related consolidated statements of operations, changes in net assets, and cash flows for each of the three years in the period ended February 28, 2021, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at February 28, 2021 and February 29, 2020, and the results of its operations, changes in its net assets and its cash flows for each of the three years in the period ended February 28, 2021, in conformity with US generally accepted accounting principles. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal controls over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of February 28, 2021 and February 29, 2020 by correspondence with the portfolio companies, custodians and debt agents. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which is relates. Valuation of investments using significant unobservable inputs Description of the Matter At February 28, 2021, the fair value of the Company's investments categorized in Level 3 of the fair value hierarchy (Level 3 investments) totaled $554,312,715. Management determines the fair value of these investments by applying the valuation techniques described in Notes 2 and 3 to the consolidated financial statements and using significant unobservable inputs and assumptions. The selection of the valuation techniques and the significant unobservable inputs and assumptions used by management requires subjective judgments and estimates. The valuation techniques used by the Company include market comparables, discounted cash flows and enterprise value waterfalls. The significant unobservable inputs used to measure fair value include market yields, EBITDA multiples, revenue multiples, discount rates, recovery rates and prepayment rates. Auditing the fair value of the Company's Level 3 investments was complex and involved auditor judgment, as the valuation techniques selected and the significant unobservable inputs and assumptions used by the Company are highly judgmental and require estimation, and the selection of such techniques, inputs and assumptions has a significant effect on the fair value measurement of such investments. How We Addressed the Matter in Our Audit To test the valuation of the Company’s Level 3 investments, we gained an understanding of the valuation techniques, significant unobservable inputs and assumptions used by the Company to value the Level 3 investments and reviewed the information considered by the Board of Directors relating to the fair value of each investment. For a sample of Level 3 investments, we evaluated the valuation techniques used, tested the significant unobservable inputs and assumptions, and tested the mathematical accuracy of the related valuation models. For this sample of Level 3 investments, we agreed the significant inputs and underlying data used in the Company’s valuations (for example, deal terms, portfolio company operating results, market yields) to transaction agreements, most recently available portfolio company financial statements or other financial information, information available from third-party sources and market data, as applicable. We involved our valuation specialists to assist in developing independent estimates of fair value for a sample of investments by using portfolio company and market information, and we compared such estimates to the Company’s fair value of these investments. We also searched for and evaluated information that corroborated or contradicted the Company’s valuations of Level 3 investments. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2006. New York, New York May 5, 2021 F- 2 PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Saratoga Investment Corp. Consolidated Statements of Assets and Liabilities February 28, 2021 February 29, 2020 ASSETS Investments at fair value Non-control/Non-affiliate investments (amortized cost of $471,328,212 and $418,006,725, respectively) $ 469,946,494 $ 420,442,928 Affiliate investments (amortized cost of $17,331,707 and $23,998,917, respectively) 19,367,740 18,485,854 Control investments (amortized cost of $61,353,761 and $44,293,619, respectively) 64,998,481 46,703,192 Total investments at fair value (amortized cost of $550,013,680 and $486,299,261, respectively) 554,312,715 485,631,974 Cash and cash equivalents 18,828,047 24,598,905 Cash and cash equivalents, reserve accounts 11,087,027 14,851,447 Interest receivable (net of reserve of $1,152,086 and $1,238,049, respectively) 4,223,630 4,810,456 Due from affiliate (See Note 6) 2,719,000 - Management fee receivable 34,644 272,207 Other assets 947,315 701,007 Total assets $ 592,152,378 $ 530,865,996 LIABILITIES Revolving credit facility $ - $ - Deferred debt financing costs, revolving credit facility (639,982 ) (512,628 ) SBA debentures payable 158,000,000 150,000,000 Deferred debt financing costs, SBA debentures payable (2,642,622 ) (2,561,495 ) 6.25% Notes Payable 2025 60,000,000 60,000,000 Deferred debt financing costs, 6.25% notes payable 2025 (1,675,064 ) (2,046,735 ) 7.25% Notes Payable 2025 43,125,000 - Deferred debt financing costs, 7.25% notes payable 2025 (1,401,307 ) - 7.75% Notes Payable 2025 5,000,000 - Deferred debt financing costs, 7.75% notes payable 2025 (239,222 ) - 6.25% Notes Payable 2027 15,000,000 - Deferred debt financing costs, 6.25% notes payable 2027 (476,820 ) - Base management and incentive fees payable 6,556,674 15,800,097 Deferred tax liability 1,922,664 1,347,363 Accounts payable and accrued expenses 1,750,266 1,713,157 Interest and debt fees payable 2,645,784 2,234,042 Directors fees payable 70,500 61,500 Due to manager 279,065 543,842 Excise tax payable 691,672 - Total liabilities 287,966,608 226,579,143 Commitments and contingencies (See Note 8) NET ASSETS Common stock, par value $0.001, 100,000,000 common shares authorized, 11,161,416 and 11,217,545 common shares issued and outstanding, respectively 11,161 11,218 Capital in excess of par value 304,874,957 289,476,991 Total distributable earnings (deficit) (700,348 ) 14,798,644 Total net assets 304,185,770 304,286,853 Total liabilities and net assets $ 592,152,378 $ 530,865,996 NET ASSET VALUE PER SHARE $ 27.25 $ 27.13 See accompanying notes to consolidated financial statements. F- 3 Saratoga Investment Corp. Consolidated Statements of Operations For the year ended February 28, 2021 February 29, 2020 February 28, 2019 INVESTMENT INCOME Interest from investments Interest income: Non-control/Non-affiliate investments $ 41,621,899 $ 36,252,113 $ 33,329,539 Affiliate investments 1,656,263 1,230,578 963,289 Control investments 5,848,980 6,175,120 4,785,044 Payment-in-kind interest income: Non-control/Non-affiliate investments 2,251,499 816,041 780,112 Affiliate investments 172,626 167,836 150,284 Control investments 162,658 3,405,307 3,288,902 Total interest from investments 51,713,925 48,046,995 43,297,170 Interest from cash and cash equivalents 14,609 536,053 64,024 Management fee income 2,507,626 2,503,804 1,722,180 Incentive fee income - - 633,232 Structuring and advisory fee income* 2,157,405 5,286,475 1,355,393 Other income* 1,256,691 2,074,864 635,964 Total investment income 57,650,256 58,448,191 47,707,963 OPERATING EXPENSES Interest and debt financing expenses 13,587,201 14,682,611 13,125,718 Base management fees 9,098,495 8,098,995 6,879,324 Incentive management fees expense (benefit) 4,903,499 14,163,776 4,891,004 Professional fees 1,705,942 1,684,089 1,849,424 Administrator expenses 2,545,833 2,131,250 1,895,833 Insurance 285,529 259,981 253,141 Directors fees and expenses 290,000 277,500 290,500 General & administrative 1,428,293 1,326,457 1,224,462 Income tax expense (benefit) 667 961,995 (1,027,118 ) Excise tax expense (credit) 691,672 - - Other expense - - 23,466 Total operating expenses 34,537,131 43,586,654 29,405,754 NET INVESTMENT INCOME 23,113,125 14,861,537 18,302,209 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) from investments: Non-control/Non-affiliate investments 22,207 11,651,990 4,874,305 Affiliate investments (8,726,013 ) - - Control investments - 31,225,165 - Net realized gain (loss) from investments (8,703,806 ) 42,877,155 4,874,305 Income tax (provision) benefit from realized gain on investments (3,895,354 ) - - Net change in unrealized appreciation (depreciation) on investments: Non-control/Non-affiliate investments (3,817,921 ) 3,060,964 (5,152,206 ) Affiliate investments 7,549,096 1,538,572 (853,588 ) Control investments 1,235,147 (5,370,450 ) 3,105,485 Net change in unrealized appreciation (depreciation) on investments 4,966,322 (770,914 ) (2,900,309 ) Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments (574,634 ) 354,349 (1,766,835 ) Net realized and unrealized gain (loss) on investments (8,207,472 ) 42,460,590 207,161 Realized losses on extinguishment of debt* (128,617 ) (1,583,266 ) - NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 14,777,036 $ 55,738,861 $ 18,509,370 WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE $ 1.32 $ 5.98 $ 2.63 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED 11,188,629 9,319,192 7,046,686 * Certain prior period amounts have been reclassified to conform to current period presentation. See accompanying notes to consolidated financial statements. F- 4 Saratoga Investment Corp. Consolidated Statements of Changes in Net Assets For the year ended February 28, 2021 February 29, 2020 February 28, 2019 INCREASE (DECREASE) FROM OPERATIONS: Net investment income $ 23,113,125 $ 14,861,537 $ 18,302,209 Net realized gain from investments (8,703,806 ) 42,877,155 4,874,305 Realized losses on extinguishment of debt (128,617 ) (1,583,266 ) - Income tax (provision) benefit from realized gain on investments (3,895,354 ) - - Net change in unrealized appreciation (depreciation) on investments 4,966,322 (770,914 ) (2,900,309 ) Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments (574,634 ) 354,349 (1,766,835 ) Net increase (decrease) in net assets resulting from operations 14,777,036 55,738,861 18,509,370 DECREASE FROM SHAREHOLDER DISTRIBUTIONS: Total distributions to shareholders (13,746,998 ) (20,097,580 ) (14,188,588 ) Net decrease in net assets from shareholder distributions (13,746,998 ) (20,097,580 ) (14,188,588 ) CAPITAL SHARE TRANSACTIONS: Proceeds from issuance of common stock - 85,904,441 32,150,157 Stock dividend distribution 2,481,084 3,096,492 2,175,893 Repurchases of common stock (3,608,459 ) - - Repurchase fees (3,746 ) - - Offering costs - (1,230,548 ) (1,397,712 ) Net increase in net assets from capital share transactions (1,131,121 ) 87,770,385 32,928,338 Total increase (decrease) in net assets (101,083 ) 123,411,666 37,249,120 Net assets at beginning of period 304,286,853 180,875,187 143,691,367 Cumulative effect of the adoption of ASC 606 (See Note 2) - - (65,300 ) Net assets at beginning of period, as adjusted 304,286,853 180,875,187 143,626,067 Net assets at end of period $ 304,185,770 $ 304,286,853 $ 180,875,187 See accompanying notes to consolidated financial statements. F- 5 Saratoga Investment Corp. Consolidated Statements of Cash Flows For the year ended February 28, 2021 February 29, 2020 February 28, 2019 Operating activities NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 14,777,036 $ 55,738,861 $ 18,509,370 ADJUSTMENTS TO RECONCILE NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Payment-in-kind and other adjustments to cost 973,606 (3,045,533 ) (4,149,105 ) Net accretion of discount on investments (1,390,128 ) (1,069,710 ) (1,222,735 ) Amortization of deferred debt financing costs 1,372,662 1,340,299 1,187,613 Realized Loss on extinguishment of debt 128,617 1,583,266 - Income tax expense (benefit) 667 961,995 (1,027,118 ) Net realized (gain) loss from investments 8,703,806 (42,877,155 ) (4,874,305 ) Net change in unrealized (appreciation) depreciation on investments (4,966,322 ) 770,914 2,900,309 Net change in provision for deferred taxes on unrealized appreciation (depreciation) on investments 574,634 (354,349 ) 1,766,835 Proceeds from sales and repayments of investments 130,259,061 167,252,601 135,727,976 Purchases of investments (202,260,764 ) (204,643,371 ) (187,707,807 ) (Increase) decrease in operating assets: Interest receivable 586,826 (1,063,852 ) (699,479 ) Due from affiliate (2,719,000 ) 1,673,747 (1,673,747 ) Management and incentive fee receivable 237,563 269,887 (309,070 ) Cumulative effect of the adoption of ASC 606 (See Note 2) - - (65,300 ) Other assets (265,997 ) (128,982 ) (89,865 ) Increase (decrease) in operating liabilities: Base management and incentive fees payable (9,243,423 ) 9,115,312 907,841 Accounts payable and accrued expenses 37,109 97,714 691,131 Interest and debt fees payable 411,742 (990,629 ) 220,317 Directors fees payable 9,000 (500 ) 18,500 Excise tax payable 691,672 - - Due to manager (264,777 ) 224,751 (91,280 ) NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (62,346,410 ) (15,144,734 ) (39,979,919 ) Financing activities Borrowings on debt 41,000,000 20,200,000 45,590,000 Paydowns on debt (33,000,000 ) (20,200,000 ) (33,250,000 ) Issuance of notes 63,125,000 - 60,000,000 Repayments of notes - (74,450,500 ) - Payments of deferred debt financing costs (3,435,749 ) (755,136 ) (2,878,120 ) Proceeds from issuance of common stock - 85,897,846 32,150,157 Payments of cash dividends (11,265,914 ) (17,001,088 ) (12,012,695 ) Repurchases of common stock (3,608,459 ) - - Repurchases fees (3,746 ) - - Payments of offering costs - (1,190,430 ) (1,302,520 ) NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 52,811,132 (7,499,308 ) 88,296,822 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS (9,535,278 ) (22,644,042 ) 48,316,903 CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD 39,450,352 62,094,394 13,777,491 CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD $ 29,915,074 $ 39,450,352 $ 62,094,394 Supplemental information: Interest paid during the period $ 11,802,800 $ 14,332,943 $ 11,717,786 Cash paid for taxes 4,140,241 18,390 66,295 Supplemental non-cash information: Payment-in-kind interest income and other adjustments to cost (973,606 ) 3,045,533 4,149,105 Net accretion of discount on investments 1,390,128 1,069,710 1,222,735 Amortization of deferred debt financing costs 1,372,662 1,340,299 1,187,613 Stock dividend distribution 2,481,084 3,096,492 2,175,893 See accompanying notes to consolidated financial statements. F- 6 Saratoga Investment Corp. Consolidated Schedule of Investments February 28, 2021 Company Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Non-control/Non-affiliate investments - 154.5% (b) Targus Holdings, Inc. (d), (h) Consumer Products Common Stock 12/31/2009 210,456 1,589,630 $ 475,116 0.2 % Total Consumer Products 1,589,630 475,116 0.2 % My Alarm Center, LLC (k) Consumer Services Preferred Equity Class A Units 8.00% PIK 7/14/2017 2,227 2,357,879 - 0.0 % My Alarm Center, LLC (h) Consumer Services Preferred Equity Class B Units 7/14/2017 1,797 1,796,880 - 0.0 % My Alarm Center, LLC (h) Consumer Services Preferred Equity Class Z Units 9/12/2018 676 712,343 181,240 0.1 % My Alarm Center, LLC (h) Consumer Services Common Stock 7/14/2017 96,224 - - 0.0 % Total Consumer Services 4,867,102 181,240 0.1 % Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020 226,782 1,050,000 1,050,000 0.3 % Total Corporate Education Software 1,050,000 1,050,000 0.3 % Passageways, Inc. Corporate Governance First Lien Term Loan (3M USD LIBOR+7.00%), 8.75% Cash, 12/31/2025 7/5/2018 $ 5,000,000 $ 4,972,250 5,050,000 1.7 % Passageways, Inc. (j) Corporate Governance Delayed Draw Term Loan (3M USD LIBOR+7.00%), 8.75% Cash, 12/31/2025 1/3/2020 $ 5,000,000 4,980,871 5,050,000 1.7 % Passageways, Inc. (h) Corporate Governance Series A Preferred Stock 7/5/2018 2,027,205 1,000,000 3,164,579 1.0 % Total Corporate Governance 10,953,121 13,264,579 4.4 % New England Dental Partners Dental Practice Management First Lien Term Loan (3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025 11/25/2020 $ 6,555,000 6,491,331 6,489,450 2.1 % New England Dental Partners (j) Dental Practice Management Delayed Draw Term Loan (3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025 11/25/2020 $ 650,000 644,419 643,500 0.2 % Total Dental Practice Management 7,135,750 7,132,950 2.3 % PDDS Buyer, LLC Dental Practice Management Software First Lien Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024 7/15/2019 $ 14,000,000 13,895,777 14,278,600 4.7 % PDDS Buyer, LLC Dental Practice Management Software Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024 7/15/2019 $ 7,000,000 6,938,964 7,139,300 2.3 % PDDS Buyer, LLC (h) Dental Practice Management Software Series A-1 Preferred Shares 8/10/2020 1,755,831 2,000,000 2,240,946 0.7 % Total Dental Practice Management Software 22,834,741 23,658,846 7.7 % C2 Educational Systems (d) Education Services First Lien Term Loan (3M USD LIBOR+8.50%), 10.00% Cash, 5/31/2023 5/31/2017 $ 16,000,000 15,998,379 13,499,200 4.4 % Texas Teachers of Tomorrow, LLC (h), (i) Education Services Common Stock 12/2/2015 750 750,000 1,011,596 0.3 % Texas Teachers of Tomorrow, LLC (d) Education Services First Lien Term Loan (3M USD LIBOR+7.25%), 9.75% Cash, 6/28/2024 6/28/2019 $ 25,947,024 25,748,711 25,874,372 8.5 % Total Education Services 42,497,090 40,385,168 13.2 % Destiny Solutions Inc. (d) Education Software First Lien Term Loan (3M USD LIBOR+7.50%), 9.50% Cash, 10/24/2024 5/16/2018 $ 43,500,000 43,204,446 43,630,500 14.3 % Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018 2,342 2,468,464 3,069,267 1.0 % Identity Automation Systems (d) Education Software First Lien Term Loan (3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024 8/25/2014 $ 17,247,500 17,247,500 17,357,884 5.7 % Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014 232,616 232,616 725,726 0.2 % Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020 43,715 171,571 185,553 0.1 % See accompanying notes to consolidated financial statements. F- 7 Saratoga Investment Corp. Consolidated Schedule of Investments February 28, 2021 Company Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets GoReact Education Software First Lien Term Loan (3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025 1/17/2020 $ 5,000,000 4,940,297 5,100,000 1.7 % GoReact (j) Education Software Delayed Draw Term Loan (3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025 1/17/2020 $ - - - 0.0 % Kev Software Inc. (a) Education Software First Lien Term Loan (1M USD LIBOR+8.63%), 9.63% Cash, 9/13/2023 9/13/2018 $ 17,835,914 17,745,629 18,021,407 5.9 % Total Education Software 86,010,523 88,090,337 28.9 % Davisware, LLC Field Service Management First Lien Term Loan (3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024 9/6/2019 $ 3,000,000 2,977,590 3,030,000 1.0 % Davisware, LLC Field Service Management Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024 9/6/2019 $ 977,790 974,399 987,568 0.3 % Total Field Service Management 3,951,989 4,017,568 1.3 % GDS Software Holdings, LLC (h) Financial Services Common Stock Class A Units 8/23/2018 250,000 250,000 418,531 0.1 % Total Financial Services 250,000 418,531 0.1 % Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock 1/15/2016 5,000 380,353 566,592 0.2 % Total Healthcare Products Manufacturing 380,353 566,592 0.2 % Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018 400,000 400,000 1,415,301 0.5 % Axiom Purchaser, Inc. (d) Healthcare Services First Lien Term Loan (3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023 6/19/2018 $ 10,000,000 9,955,177 10,059,000 3.3 % Axiom Purchaser, Inc. (d) Healthcare Services Delayed Draw Term Loan (3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023 6/19/2018 $ 6,000,000 5,961,748 6,035,400 2.0 % ComForCare Health Care Healthcare Services First Lien Term Loan (3M USD LIBOR+7.75%), 8.75% Cash, 1/31/2025 1/31/2017 $ 25,000,000 24,871,639 24,900,000 8.2 % Total Healthcare Services 41,188,564 42,409,701 14.0 % TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019 2,000,000 2,000,000 2,572,002 0.8 % HemaTerra Holding Company, LLC Healthcare Software First Lien Term Loan (3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024 4/15/2019 $ 6,000,000 5,956,593 6,060,000 2.0 % HemaTerra Holding Company, LLC (d), (j) Healthcare Software Delayed Draw Term Loan (3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024 4/15/2019 $ 12,000,000 11,914,035 12,120,000 4.0 % Procurement Partners, LLC Healthcare Software First Lien Term Loan (3M USD LIBOR+6.50%), 7.50% Cash, 11/12/2025 11/12/2020 $ 8,000,000 7,924,230 7,920,000 2.6 % Procurement Partners, LLC (j) Healthcare Software Delayed Draw Term Loan (3M USD LIBOR+6.50%), 7.50% Cash, 11/12/2025 11/12/2020 $ - - - 0.0 % Procurement Partners Holdings LLC (h) Healthcare Software Class A Units 11/12/2020 300,000 300,000 300,000 0.1 % Total Healthcare Software 28,094,858 28,972,002 9.5 % Roscoe Medical, Inc. (d), (h) Healthcare Supply Common Stock 3/26/2014 5,081 508,077 280,346 0.1 % Roscoe Medical, Inc. Healthcare Supply Second Lien Term Loan 11.25% Cash, 6/28/2021 3/26/2014 $ 5,141,413 5,141,413 5,141,413 1.7 % Total Healthcare Supply 5,649,490 5,421,759 1.8 % Book4Time, Inc. (a) Hospitality/Hotel First Lien Term Loan (3M USD LIBOR+8.50%), 10.25%, 12/22/2025 12/22/2020 $ 3,136,517 3,105,788 3,105,152 1.0 % Book4Time, Inc. (a), (j) Hospitality/Hotel Delayed Draw Term Loan (3M USD LIBOR+8.50%), 10.25%, 12/22/2025 12/22/2020 $ - - - 0.0 % Book4Time, Inc. (a), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020 200,000 156,826 156,826 0.1 % Knowland Group, LLC Hospitality/Hotel Second Lien Term Loan (3M USD LIBOR+8.00%), 10.00% Cash, 5/9/2024 11/9/2018 $ 15,767,918 15,767,918 10,788,409 3.5 % Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan (1M USD LIBOR+9.00%), 10.00% Cash, 4/27/2025 4/27/2020 $ 3,000,000 2,973,387 3,030,000 1.0 % Total Hospitality/Hotel 22,003,919 17,080,387 5.6 % Granite Comfort, LP HVAC Services and Sales First Lien Term Loan (1M USD LIBOR+9.00%), 10.00% Cash, 11/16/2025 11/16/2020 $ 7,000,000 6,932,689 6,950,300 2.3 % Granite Comfort, LP HVAC Services and Sales Delayed Draw Term Loan (1M USD LIBOR+9.00%), 10.00% Cash, 11/16/2025 11/16/2020 $ 8,000,000 7,922,181 7,943,200 2.6 % Total HVAC Services and Sales 14,854,870 14,893,500 4.9 % See accompanying notes to consolidated financial statements. F- 8 Saratoga Investment Corp. Consolidated Schedule of Investments February 28, 2021 Company Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan 11.50% (9.75% Cash/1.75% PIK), 3/6/2022 3/6/2013 $ 7,021,046 7,021,046 7,021,046 2.3 % Vector Controls Holding Co., LLC (d), (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015 343 - 2,025,598 0.7 % Total Industrial Products 7,021,046 9,046,644 3.0 % CLEO Communications Holding, LLC (d) IT Services First Lien Term Loan (3M USD LIBOR+8.00%), 9.00% Cash/2.00% PIK, 3/31/2022 3/31/2017 $ 14,073,964 14,064,807 14,176,704 4.7 % CLEO Communications Holding, LLC (d), (j) IT Services Delayed Draw Term Loan (3M USD LIBOR+8.00%), 9.00% Cash/2.00% PIK, 3/31/2022 3/31/2017 $ 20,451,756 20,388,504 20,601,054 6.8 % LogicMonitor, Inc. IT Services First Lien Term Loan (3M USD LIBOR+5.00), 6.00% Cash, 5/17/2023 3/20/2020 $ 23,000,000 22,865,749 23,089,700 7.6 % Total IT Services 57,319,060 57,867,458 19.1 % inMotionNow, Inc. Marketing Services First Lien Term Loan (3M USD LIBOR+7.50), 10.00% Cash, 5/15/2024 5/15/2019 $ 12,200,000 12,116,232 12,322,000 4.1 % inMotionNow, Inc. Marketing Services Delayed Draw Term Loan (3M USD LIBOR+7.50) 10.00% Cash, 5/15/2024 5/15/2019 $ 5,000,000 4,960,820 5,050,000 1.7 % Total Marketing Services 17,077,052 17,372,000 5.8 % Omatic Software, LLC Non-profit Services First Lien Term Loan (3M USD LIBOR+8.00%), 9.75% Cash, 5/29/2023 5/29/2018 $ 5,500,000 5,470,787 5,554,450 1.8 % Total Non-profit Services 5,470,787 5,554,450 1.8 % Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note (3M USD LIBOR+8.50%), 10.00% Cash, 12/31/2023 12/28/2012 $ 3,300,000 3,300,000 3,287,460 1.1 % Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests Expires 12/28/2022 12/28/2012 49,318 400,000 322,853 0.1 % Total Office Supplies 3,700,000 3,610,313 1.2 % Apex Holdings Software Technologies, LLC Payroll Services First Lien Term Loan (3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024 9/21/2016 $ 18,000,000 17,981,413 17,368,200 5.7 % Apex Holdings Software Technologies, LLC Payroll Services Delayed Draw Term Loan (3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024 10/1/2018 $ 1,000,000 994,557 964,900 0.3 % Total Payroll Services 18,975,970 18,333,100 6.0 % Village Realty Holdings LLC Property Management First Lien Term Loan (3M USD LIBOR+6.50%), 8.75% Cash, 10/8/2024 10/8/2019 $ 7,250,000 7,189,591 7,395,000 2.4 % Village Realty Holdings LLC (j) Property Management Delayed Draw Term Loan (3M USD LIBOR+6.50%), 8.75% Cash, 10/8/2024 10/8/2019 $ 4,876,322 4,838,617 4,973,850 1.6 % V Rental Holdings LLC (h) Property Management Class A-1 Membership Units 10/8/2019 122,578 365,914 2,208,681 0.7 % Total Property Management 12,394,122 14,577,531 4.7 % Buildout, Inc. Real Estate Services First Lien Term Loan (3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025 7/9/2020 $ 14,000,000 13,873,317 13,952,400 4.6 % Buildout, Inc. Real Estate Services Delayed Draw Term Loan (3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025 2/12/2021 $ 3,000,000 2,970,361 2,989,800 1.0 % Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020 1,071 1,071,301 1,090,002 0.4 % Total Real Estate Services 17,914,979 18,032,202 6.0 % TMAC Acquisition Co., LLC (k) Restaurant Unsecured Term Loan 8.00% PIK, 9/01/2023 3/1/2018 $ 2,261,017 2,261,017 2,140,911 0.7 % Total Restaurant 2,261,017 2,140,911 0.7 % ArbiterSports, LLC (d) Sports Management First Lien Term Loan (3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025 2/21/2020 $ 26,000,000 25,800,743 24,525,800 8.1 % ArbiterSports, LLC (d) Sports Management Delayed Draw Term Loan (3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025 2/21/2020 $ 1,000,000 1,000,000 943,300 0.3 % Total Sports Management 26,800,743 25,469,100 8.4 % Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014 100,000 100,000 924,509 0.3 % Total Staffing Services 100,000 924,509 0.3 % National Waste Partners (d) Waste Services Second Lien Term Loan 10.00% Cash, 2/13/2022 2/13/2017 $ 9,000,000 8,981,436 9,000,000 3.0 % Total Waste Services 8,981,436 9,000,000 3.0 % Sub Total Non-control/Non-affiliate investments 471,328,212 469,946,494 154.5 % See accompanying notes to consolidated financial statements. F- 9 Saratoga Investment Corp. Consolidated Schedule of Investments February 28, 2021 Company Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Affiliate investments - 6.4% (b) GreyHeller LLC (f) Cyber Security First Lien Term Loan (3M USD LIBOR+11.00%), 12.00% Cash, 12/31/2025 11/17/2016 $ 7,000,000 6,988,549 7,000,000 2.3 % GreyHeller LLC (d), (f), (j) Cyber Security Delayed Draw Term Loan (3M USD LIBOR+11.00%), 12.00% Cash, 12/31/2025 10/19/2020 $ 2,250,000 2,233,173 2,250,000 0.7 % GreyHeller LLC (f), (h) Cyber Security Series A Preferred Units 11/17/2016 850,000 850,000 3,924,291 1.3 % Total Cyber Security 10,071,722 13,174,291 4.3 % Top Gun Pressure Washing, LLC (f) Facilities Maintenance First Lien Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024 8/12/2019 $ 5,000,000 4,961,639 4,491,500 1.5 % Top Gun Pressure Washing, LLC (f), (j) Facilities Maintenance Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024 8/12/2019 $ 1,825,000 1,810,198 1,639,397 0.6 % TG Pressure Washing Holdings, LLC (f), (h) Facilities Maintenance Preferred Equity 8/12/2019 488,148 488,148 62,552 0.0 % Total Facilities Maintenance 7,259,985 6,193,449 2.1 % Sub Total Affiliate investments 17,331,707 19,367,740 6.4 % Control investments - 21.4% (b) Netreo Holdings, LLC (g) IT Services First Lien Term Loan (3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK, 12/31/2025 7/3/2018 $ 5,296,555 5,268,156 5,349,521 1.8 % Netreo Holdings, LLC (g), (j) IT Services Delayed Draw Term Loan (3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK, 12/31/2020 5/26/2020 $ 1,223,203 1,213,962 1,235,435 0.4 % Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018 3,150,000 3,150,000 8,634,768 2.8 % Total IT Services 9,632,118 15,219,724 5.0 % Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities 11.72%, 1/20/2030 1/22/2008 $ 111,000,000 33,846,643 31,449,732 10.3 % Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-3 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities (3M USD LIBOR+10.00%), 10.19%, 4/20/2033 2/26/2021 $ 17,875,000 17,875,000 18,329,025 6.1 % Total Structured Finance Securities 51,721,643 49,778,757 16.4 % Sub Total Control investments 61,353,761 64,998,481 21.4 % TOTAL INVESTMENTS - 182.2% (b) $ 550,013,680 $ 554,312,715 182.2 % Number of Shares Cost Fair Value % of Net Assets Cash and cash equivalents and cash and cash equivalents, reserve accounts - 6.2% (b) U.S. Bank Money Market (l) 18,828,047 $ 18,828,047 $ 18,828,047 6.2 % Total cash and cash equivalents and cash and cash equivalents, reserve accounts 18,828,047 $ 18,828,047 $ 18,828,047 6.2 % (a) Represents an ineligible investment as defined under Section 55(a) of the Investment Company Act of 1940, as amended. As of February 28, 2021 non-qualifying assets represent 9.5% of the Company’s portfolio at fair value. As a BDC, the Company can only invest 30% of its portfolio in non-qualifying assets. (b) Percentages are based on net assets of $304,185,770 as of February 28, 2021. (c) Because there is no readily available market value for these investments, the fair values of these investments were determined using significant unobservable inputs and approved in good faith by our board of directors. These investments have been included as Level 3 in the Fair Value Hierarchy (see Note 3 to the consolidated financial statements). (d) These securities are either fully or partially pledged as collateral under a senior secured revolving credit facility (see Note 7 to the consolidated financial statements). (e) This investment does not have a stated interest rate that is payable thereon. As a result, the 11.72% interest rate in the table above represents the effective interest rate currently earned on the investment cost and is based on the current cash interest and other income generated by the investment. See accompanying notes to consolidated financial statements. F- 10 Saratoga Investment Corp. Consolidated Schedule of Investments February 28, 2021 (f) As defined in the Investment Company Act, this portfolio company is an Affiliate as we own between 5.0% and 25.0% of the voting securities. Transactions during the year ended February 28, 2021 in which the issuer was an Affiliate are as follows: Company Purchases Sales Total Interest from Investments Management Fee Income Net Realized Gain (Loss) from Investments Net Change in Unrealized Appreciation (Depreciation) Elyria Foundry Company, L.L.C. $ - $ (2,309,806 ) $ 172,626 $ - $ (8,726,013 ) $ 7,745,228 GreyHeller LLC 2,227,500 - 987,969 - - 942,175 Top Gun Pressure Washing, LLC 1,806,750 - 668,294 - - (712,711 ) TG Pressure Washing Holdings, LLC 138,148 - - - - (425,596 ) Total $ 4,172,398 $ (2,309,806 ) $ 1,828,889 $ - $ (8,726,013 ) $ 7,549,096 (g) As defined in the Investment Company Act, we “Control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the year ended February 28, 2021 in which the issuer was both an Affiliate and a portfolio company that we Control are as follows: Company Purchases Sales Total Interest from Investments Management Fee Income Net Realized Gain (Loss) from Investments Net Change in Unrealized Appreciation (Depreciation) Netreo Holdings, LLC $ 1,188,000 $ - $ 738,012 $ - $ - $ 1,832,136 Saratoga Investment Corp. CLO 2013-1, Ltd. 14,000,000 - 3,535,591 2,507,626 - (1,433,723 ) Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-2 Notes - (2,500,000 ) 237,163 - - 22,000 Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-3 Note 17,875,000 - 15,187 - - 454,025 Saratoga Investment Corp. CLO 2013-1, Ltd. Class G-R-2 Notes - (7,500,000 ) 805,759 - - 65,250 Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd. 22,500,000 (25,000,000 ) 679,926 - - 295,459 Total $ 55,563,000 $ (35,000,000 ) $ 6,011,638 $ 2,507,626 $ - $ 1,235,147 (h) Non-income producing at February 28, 2021. (i) Includes securities issued by an affiliate of the Company. (j) All or a portion of this investment has an unfunded commitment as of February 28, 2021. (see Note 8 to the consolidated financial statements). (k) As of February 28, 2021, the investment was on non-accrual status. The fair value of these investments was approximately $2.1 million, which represented 0.4% of the Company’s portfolio (see Note 2 to the consolidated financial statements). (l) Included within cash and cash equivalents and cash and cash equivalents, reserve accounts in the Company’s consolidated statements of assets and liabilities as of February 28, 2021. LIBOR - London Interbank Offered Rate 1M USD LIBOR - The 1 month USD LIBOR rate as of February 28, 2021 was 0.12%. 3M USD LIBOR - The 3 month USD LIBOR rate as of February 28, 2021 was 0.19%. PIK - Payment-in-Kind (see Note 2 to the consolidated financial statements). See accompanying notes to consolidated financial statements. F- 11 Saratoga Investment Corp. Consolidated Schedule of Investments February 29, 2020 Company Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Non-control/Non-affiliate investments - 138.2% (b) CoConstruct, LLC Construction Management Services First Lien Term Loan (3M USD LIBOR+7.50%), 10.00% Cash, 7/5/2024 7/5/2019 $ 4,200,000 4,161,917 4,284,000 1.4 % CoConstruct, LLC (j) Construction Management Services Delayed Draw Term Loan (3M USD LIBOR+7.50%), 10.00% Cash, 7/5/2024 7/5/2019 $ - - - 0.0 % Total Construction Management Services 4,161,917 4,284,000 1.4 % Targus Holdings, Inc. (h) Consumer Products Common Stock 12/31/2009 210,456 1,589,630 417,619 0.1 % Total Consumer Products 1,589,630 417,619 0.1 % My Alarm Center, LLC (k) Consumer Services Preferred Equity Class A Units 8.00% PIK 7/14/2017 2,227 2,357,879 - 0.0 % My Alarm Center, LLC (h) Consumer Services Preferred Equity Class B Units 7/14/2017 1,797 1,796,880 - 0.0 % My Alarm Center, LLC (h) Consumer Services Preferred Equity Class Z Units 9/12/2018 676 712,343 1,997,158 0.6 % My Alarm Center, LLC (h) Consumer Services Common Stock 7/14/2017 96,224 - - 0.0 % Total Consumer Services 4,867,102 1,997,158 0.60 % Passageways, Inc. Corporate Governance First Lien Term Loan (3M USD LIBOR+7.00%), 8.75% Cash, 7/5/2023 7/5/2018 $ 5,000,000 4,961,214 5,034,500 1.7 % Passageways, Inc. (j) Corporate Governance Delayed Draw Term Loan (3M USD LIBOR+7.00%), 8.75% Cash, 7/5/2023 1/3/2020 $ 2,000,000 1,991,001 2,013,800 0.7 % Passageways, Inc. (h) Corporate Governance Series A Preferred Stock 7/5/2018 2,027,205 1,000,000 2,042,180 0.8 % Total Corporate Governance 7,952,215 9,090,480 0.03 C2 Educational Systems (d) Education Services First Lien Term Loan (3M USD LIBOR+7.00%), 8.50% Cash, 5/31/2020 5/31/2017 $ 16,000,000 15,981,853 16,000,000 5.3 % Texas Teachers of Tomorrow, LLC (h), (i) Education Services Common Stock 12/2/2015 750,000 750,000 703,910 0.2 % Texas Teachers of Tomorrow, LLC (d) Education Services First Lien Term Loan (3M USD LIBOR+7.25%), 9.75% Cash, 6/28/2024 6/28/2019 $ 19,661,200 19,483,213 19,661,200 6.5 % Total Education Services 36,215,066 36,365,110 12.0 % Destiny Solutions Inc. (d) Education Software First Lien Term Loan (3M USD LIBOR+7.25%), 9.25% Cash, 10/23/2024 5/16/2018 $ 36,000,000 35,686,318 35,888,400 11.8 % Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018 2,342 2,468,464 2,805,839 0.9 % Identity Automation Systems (h) Education Software Common Stock Class A Units 8/25/2014 232,616 232,616 860,269 0.4 % Identity Automation Systems (d) Education Software First Lien Term Loan (3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024 8/25/2014 $ 15,422,500 15,389,090 15,524,289 5.1 % EMS LINQ, Inc. Education Software First Lien Term Loan (1M USD LIBOR+8.50%), 10.02% Cash, 8/9/2024 8/9/2019 $ 14,925,000 14,780,293 14,823,510 4.8 % GoReact Education Software First Lien Term Loan (3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025 1/17/2020 $ 5,000,000 4,930,819 4,950,000 1.6 % GoReact (j) Education Software Delayed Draw Term Loan (3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025 1/17/2020 $ - - - 0.0 % Kev Software Inc. (a) Education Software First Lien Term Loan (1M USD LIBOR+8.63%), 10.15% Cash, 9/13/2023 9/13/2018 $ 21,231,923 21,086,573 21,202,198 7.0 % Total Education Software 94,574,173 96,054,505 31.6 % Davisware, LLC Field Service Management First Lien Term Loan (3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024 9/6/2019 $ 3,000,000 2,971,896 2,970,000 1.0 % Davisware, LLC (j) Field Service Management Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024 9/6/2019 $ - - - 0.0 % Total Field Service Management 2,971,896 2,970,000 1.0 % F- 12 Saratoga Investment Corp. Consolidated Schedule of Investments February 29, 2020 Company Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets GDS Holdings US, Inc. (d) Financial Services First Lien Term Loan (3M USD LIBOR+7.00%), 8.50% Cash, 8/23/2023 8/23/2018 $ 7,500,000 7,444,170 7,650,000 2.5 % GDS Holdings US, Inc. (d) Financial Services Delayed Draw Term Loan (3M USD LIBOR+7.00%), 8.50% Cash, 8/23/2023 8/23/2018 $ 1,000,000 990,526 1,020,000 0.3 % GDS Software Holdings, LLC (h) Financial Services Common Stock Class A Units 8/23/2018 250,000 250,000 421,291 0.1 % FMG Suite Holdings, LLC (d) Financial Services Second Lien Term Loan (1M USD LIBOR+8.00%), 9.52% Cash, 11/16/2023 5/16/2018 $ 23,000,000 22,863,835 23,000,000 7.6 % Total Financial Services 31,548,531 32,091,291 10.5 % Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock 1/15/2016 5,000 500,000 416,550 0.1 % Ohio Medical, LLC Healthcare Products Manufacturing Senior Subordinated Note 12.00% Cash, 7/15/2021 1/15/2016 $ 7,300,000 7,274,482 7,300,000 2.4 % Total Healthcare Products Manufacturing 7,774,482 7,716,550 2.5 % Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018 400,000 400,000 428,706 0.1 % Axiom Purchaser, Inc. (d) Healthcare Services First Lien Term Loan (3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023 6/19/2018 $ 10,000,000 9,936,612 9,944,000 3.3 % Axiom Purchaser, Inc. (d), (j) Healthcare Services Delayed Draw Term Loan (3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023 6/19/2018 $ 3,000,000 2,977,619 2,983,200 1.0 % ComForCare Health Care Healthcare Services First Lien Term Loan (3M USD LIBOR+7.50%), 8.96% Cash, 1/31/2022 1/31/2017 $ 15,000,000 14,929,216 15,099,000 5.0 % Total Healthcare Services 28,243,447 28,454,906 9.4 % HemaTerra Holding Company, LLC Healthcare Software First Lien Term Loan (3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024 4/15/2019 $ 6,000,000 5,944,473 6,120,000 2.0 % HemaTerra Holding Company, LLC (j) Healthcare Software Delayed Draw Term Loan (3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024 4/15/2019 $ 10,000,000 9,912,295 10,200,000 3.4 % TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019 2,000,000 2,000,000 2,259,190 0.7 % PDDS Buyer, LLC Healthcare Software First Lien Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024 7/15/2019 $ 12,000,000 11,888,585 12,184,800 4.0 % PDDS Buyer, LLC (j) Healthcare Software Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024 7/15/2019 $ - - - 0.0 % Total Healthcare Software 29,745,353 30,763,990 10.1 % Roscoe Medical, Inc. (h) Healthcare Supply Common Stock 3/26/2014 5,081 508,077 - 0.0 % Roscoe Medical, Inc. (k) Healthcare Supply Second Lien Term Loan 11.25% Cash, 3/28/2021 3/26/2014 $ 4,200,000 4,200,000 2,136,960 0.7 % Total Healthcare Supply 4,708,077 2,136,960 0.7 % Knowland Group, LLC Hospitality/Hotel Second Lien Term Loan (3M USD LIBOR+8.00%), 10.00% Cash, 5/9/2024 11/9/2018 $ 15,000,000 15,000,000 14,893,500 4.9 % Total Hospitality/Hotel 15,000,000 14,893,500 4.9 % Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan 10.50% (9.00% Cash/1.50% PIK), 3/6/2022 3/6/2013 $ 7,849,846 7,849,846 7,928,345 2.6 % Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015 343 - 2,850,231 0.9 % Total Industrial Products 7,849,846 10,778,576 3.5 % CLEO Communications Holding, LLC IT Services First Lien Term Loan (3M USD LIBOR+8.00%), 9.46% Cash/2.00% PIK, 3/31/2022 3/31/2017 $ 13,791,686 13,773,206 14,048,211 4.6 % CLEO Communications Holding, LLC IT Services Delayed Draw Term Loan (3M USD LIBOR+8.00%), 9.46% Cash/2.00% PIK, 3/31/2022 3/31/2017 $ 20,041,560 19,919,746 20,414,333 6.7 % Erwin, Inc. (d) IT Services Second Lien Term Loan (3M USD LIBOR+11.50%), 12.96% Cash/1.00% PIK, 8/28/2021 2/29/2016 $ 16,049,804 15,990,286 16,049,804 5.3 % Total IT Services 49,683,238 50,512,348 16.6 % inMotionNow, Inc. Marketing Services First Lien Term Loan (3M USD LIBOR+7.25), 9.75% Cash, 5/15/2024 5/15/2019 $ 12,200,000 12,094,364 12,200,000 4.1 % inMotionNow, Inc. (j) Marketing Services Delayed Draw Term Loan (3M USD LIBOR+7.25) 9.75% Cash, 5/15/2024 5/15/2019 $ 2,000,000 1,981,329 2,000,000 0.0 % Total Marketing Services 14,075,693 14,200,000 4.1 % F- 13 Saratoga Investment Corp. Consolidated Schedule of Investments February 29, 2020 Company Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Omatic Software, LLC Non-profit Services First Lien Term Loan (3M USD LIBOR+8.00%), 9.75% Cash, 5/29/2023 5/29/2018 $ 5,500,000 5,459,192 5,554,999 1.9 % Omatic Software, LLC (j) Non-profit Services Delayed Draw Term Loan (3M USD LIBOR+8.00%), 9.75% Cash, 5/29/2023 5/29/2018 $ - - - 0.0 % Total Non-profit Services 5,459,192 5,554,999 1.9 % Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note (3M USD LIBOR+8.50%), 10.00% Cash, 4/22/2020 12/28/2012 $ 3,300,000 3,299,987 3,300,000 1.1 % Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests Expires 12/28/2022 12/28/2012 49,318 400,000 499,464 0.2 % Total Office Supplies 3,699,987 3,799,464 1.3 % Apex Holdings Software Technologies, LLC Payroll Services First Lien Term Loan (3M USD LIBOR+8.00%), 9.46% Cash, 9/21/2021 9/21/2016 $ 18,000,000 $ 17,951,463 $ 17,589,600 5.8 % Apex Holdings Software Technologies, LLC Payroll Services Delayed Draw Term Loan (3M USD LIBOR+8.00%), 9.46% Cash, 9/21/2021 10/1/2018 $ 1,500,000 1,491,938 1,465,800 0.5 % Total Payroll Services 19,443,401 19,055,400 6.3 % Village Realty Holdings LLC Property Management First Lien Term Loan (3M USD LIBOR+6.50%), 8.75% Cash, 10/8/2024 10/8/2019 $ 7,250,000 7,180,560 7,264,500 2.4 % Village Realty Holdings LLC (j) Property Management Delayed Draw Term Loan (3M USD LIBOR+6.50%), 8.75% Cash, 10/8/2024 10/8/2019 $ 3,876,322 3,838,783 3,884,075 1.4 % V Rental Holdings LLC (h) Property Management Class A-1 Membership Units 10/8/2019 116,700 338,229 354,280 0.1 % Total Property Management 11,357,572 11,502,855 3.9 % TMAC Acquisition Co., LLC Restaurant Unsecured Term Loan 8.00% PIK, 9/01/2023 3/1/2018 $ 2,261,017 2,261,017 2,140,880 0.7 % Total Restaurant 2,261,017 2,140,880 0.7 % ArbiterSports, LLC Sports Management First Lien Term Loan (3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025 2/21/2020 $ 26,000,000 25,765,288 25,740,000 8.6 % Arbiter Sports, LLC (j) Sports Management Delayed Draw Term Loan (3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025 2/21/2020 $ - - - 0.0 % Total Sports Management 25,765,288 25,740,000 8.6 % Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014 100,000 100,000 922,337 0.3 % Total Staffing Services 100,000 922,337 0.3 % National Waste Partners (d) Waste Services Second Lien Term Loan 10.00% Cash, 2/13/2022 2/13/2017 $ 9,000,000 8,959,602 9,000,000 3.0 % Total Waste Services 8,959,602 9,000,000 3.0 % Sub Total Non-control/Non-affiliate investments 418,006,725 420,442,928 138.2 % Affiliate investments - 6.0% (b) GreyHeller LLC (f) Cyber Security First Lien Term Loan (3M USD LIBOR+11.00%), 12.46% Cash, 11/16/2021 11/17/2016 $ 7,000,000 6,971,109 7,000,000 2.2 % GreyHeller LLC (f), (h) Cyber Security Series A Preferred Units 11/17/2016 850,000 850,000 2,981,503 1.0 % Total Cyber Security 7,821,109 9,981,503 3.2 % Top Gun Pressure Washing, LLC (f) Facilities Maintenance First Lien Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024 8/12/2019 $ 5,000,000 4,952,729 5,024,500 1.7 % Top Gun Pressure Washing, LLC (f), (j) Facilities Maintenance Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024 8/12/2019 $ - - - 0.0 % TG Pressure Washing Holdings, LLC (f), (h) Facilities Maintenance Preferred Equity 8/12/2019 350,000 350,000 350,000 0.1 % Total Facililties Maintenance 5,302,729 5,374,500 1.8 % Elyria Foundry Company, L.L.C. (f), (h) Metals Common Stock 7/30/2010 60,000 9,685,028 1,939,800 0.6 % Elyria Foundry Company, L.L.C. (d), (f) Metals Second Lien Term Loan 15.00% PIK, 8/10/2022 7/30/2010 $ 1,190,051 1,190,051 1,190,051 0.4 % Total Metals 10,875,079 3,129,851 1.0 % Sub Total Affiliate investments 23,998,917 18,485,854 6.0 % F- 14 Saratoga Investment Corp. Consolidated Schedule of Investments February 29, 2020 Company Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Control investments - 15.4% (b) Netreo Holdings, LLC (g) IT Services First Lien Term Loan (3M USD LIBOR +6.25%), 9.00% Cash/2.00% PIK, 7/3/2023 7/3/2018 $ 5,162,734 5,123,191 5,265,989 1.7 % Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018 3,150,000 3,150,000 6,762,672 2.3 % Total IT Services 8,273,191 12,028,661 4.0 % Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities 10.97%, 1/20/2030 1/22/2008 $ 69,500,000 23,520,428 22,557,240 7.4 % Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-2 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities (3M USD LIBOR+8.75%), 10.21%, 1/20/2030 12/14/2018 $ 2,500,000 2,500,000 2,478,000 0.8 % Saratoga Investment Corp. CLO 2013-1, Ltd. Class G-R-2 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities (3M USD LIBOR+10.00%), 11.46%, 1/20/2030 12/14/2018 $ 7,500,000 7,500,000 7,434,750 2.4 % Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd. (a), (g), (j) Structured Finance Securities Unsecured Loan (3M USD LIBOR+7.50%), 8.96%, 8/20/2021 2/18/2020 $ 2,500,000 2,500,000 2,204,541 0.8 % Total Structured Finance Securities 36,020,428 34,674,531 11.4 % Sub Total Control investments 44,293,619 46,703,192 15.4 % TOTAL INVESTMENTS - 159.6% (b) $ 486,299,261 $ 485,631,974 159.6 % Number of Shares Cost Fair Value % of Net Assets Cash and cash equivalents and cash and cash equivalents, reserve accounts - 13.0% (b) U.S. Bank Money Market (l) 39,450,352 $ 39,450,352 $ 39,450,352 13.0 % Total cash and cash equivalents and cash and cash equivalents, reserve accounts 39,450,352 $ 39,450,352 $ 39,450,352 13.0 % * Certain reclassifications have been made to previously reported industry groupings to show results on a consistent basis across periods. (a) Represents a non-qualifying investment as defined under Section 55(a) of the Investment Company Act of 1940, as amended. As of February 29, 2020, non-qualifying assets represent 11.5% of the Company’s portfolio at fair value. As a BDC, the Company can only invest 30% of its portfolio in non-qualifying assets. (b) Percentages are based on net assets of $304,286,853 as of February 29, 2020. (c) Because there is no readily available market value for these investments, the fair values of these investments were determined using significant unobservable inputs and approved in good faith by our board of directors. These investments have been included as Level 3 in the Fair Value Hierarchy (see Note 3 to the consolidated financial statements). (d) These securities are either fully or partially pledged as collateral under a senior secured revolving credit facility (see Note 7 to the consolidated financial statements). (e) This investment does not have a stated interest rate that is payable thereon. As a result, the 10.97% interest rate in the table above represents the effective interest rate currently earned on the investment cost and is based on the current cash interest and other income generated by the investment. F- 15 Saratoga Investment Corp. Consolidated Schedule of Investments February 29, 2020 (f) As defined in the Investment Company Act, this portfolio company is an Affiliate as we own between 5.0% and 25.0% of the voting securities. Transactions during the year ended February 29, 2020 in which the issuer was an Affiliate are as follows: Company Purchases Sales Total Interest from Investments Management Fee Income Net Realized Gain (Loss) from Investments Net Change in Unrealized Appreciation (Depreciation) GreyHeller LLC $ - $ - $ 961,322 $ - $ - $ 1,331,201 Elyria Foundry Company, L.L.C. - - 167,835 - - 135,600 Top Gun Pressure Washing, LLC 4,950,000 - 269,257 - - 71,771 TG Pressure Washing Holdings, LLC 350,000 - - - - - Total $ 5,300,000 $ - $ 1,398,414 $ - $ - $ 1,538,572 (g) As defined in the Investment Company Act, we “Control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the year ended February 29, 2020 in which the issuer was both an Affiliate and a portfolio company that we Control are as follows: Company Purchases Sales Total Interest from Investments Management Fee Income Net Realized Gain (Loss) from Investments Net Change in Unrealized Appreciation (Depreciation) Easy Ice, LLC $ - $ (65,219,080 ) $ 3,335,320 $ - $ 31,225,165 $ (3,816,610 ) Easy Ice Masters, LLC - (4,169,121 ) 382,066 - - (51,436 ) Netreo Holdings, LLC - - 578,617 - - 1,654,603 Saratoga Investment Corp. CLO 2013-1, Ltd. - - 4,058,715 2,503,804 - (2,840,298 ) Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-2 Notes - - 280,689 - - (5,500 ) Saratoga Investment Corp. CLO 2013-1, Ltd. Class G-R-2 Notes - - 937,378 - - (15,750 ) Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd (j) 2,500,000 - 7,642 - - (295,459 ) Total $ 2,500,000 $ (69,388,201 ) $ 9,580,427 $ 2,503,804 $ 31,225,165 $ (5,370,450 ) (h) Non-income producing at February 29, 2020. (i) Includes securities issued by an affiliate of the Company. (j) All or a portion of this investment has an unfunded commitment as of February 29, 2020. (see Note 8 to the consolidated financial statements). (k) As of February 29, 2020, the investment was on non-accrual status. The fair value of these investments was approximately $2.1 million, which represented 0.4% of the Company’s portfolio (see Note 2 to the consolidated financial statements). (l) Included within cash and cash equivalents and cash and cash equivalents, reserve accounts in the Company’s consolidated statements of assets and liabilities as of February 29, 2020. LIBOR - London Interbank Offered Rate 1M USD LIBOR - The 1 month USD LIBOR rate as of February 29, 2020 was 1.52%. 3M USD LIBOR - The 3 month USD LIBOR rate as of February 29, 2020 was 1.46%. PIK - Payment-in-Kind (see Note 2 to the consolidated financial statements). See accompanying notes to consolidated financial statements. F- 16 SARATOGA INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS February 28, 2021 Note 1. Organization Saratoga Investment Corp. (the “Company”, “we”, “our” and “us”) is a non-diversified closed end management investment company incorporated in Maryland that has elected to be treated and is regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company commenced operations on March 23, 2007 as GSC Investment Corp. and completed the initial public offering (“IPO”) on March 28, 2007. The Company has elected to be treated as a regulated investment company (“RIC”) under subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company expects to continue to qualify and to elect to be treated, for tax purposes, as a RIC. The Company’s investment objective is to generate current income and, to a lesser extent, capital appreciation from its investments. GSC Investment, LLC (the “LLC”) was organized in May 2006 as a Maryland limited liability company. As of February 28, 2007, the LLC had not yet commenced its operations and investment activities. On March 21, 2007, the Company was incorporated and concurrently therewith the LLC was merged with and into the Company, with the Company as the surviving entity, in accordance with the procedure for such merger in the LLC’s limited liability company agreement and Maryland law. In connection with such merger, each outstanding limited liability company interest of the LLC was converted into a share of common stock of the Company. On July 30, 2010, the Company changed its name from “GSC Investment Corp.” to “Saratoga Investment Corp.” in connection with the consummation of a recapitalization transaction. The Company is externally managed and advised by the investment adviser, Saratoga Investment Advisors, LLC (the “Manager” or “Saratoga Investment Advisors”), pursuant to an investment advisory and management agreement (the “Management Agreement”). Prior to July 30, 2010, the Company was managed and advised by GSCP (NJ), L.P. The Company has established wholly-owned subsidiaries, SIA-Avionte, Inc., SIA-GH, Inc., SIA-MAC, SIA-PP Inc., Inc., SIA-TG, Inc., SIA-TT, Inc., SIA-Vector, Inc. and SIA-VR, Inc., which are structured as Delaware entities, or tax blockers (“Taxable Blockers”), to hold equity or equity-like investments in portfolio companies organized as limited liability companies, or LLCs (or other forms of pass through entities). Tax Blockers are consolidated for accounting purposes, but are not consolidated for U.S. federal income tax purposes and may incur U.S. federal income tax expenses as a result of their ownership of portfolio companies. On December 31, 2019, the Company’s second lien term loans in Easy Ice, LLC and Easy Ice Masters, LLC were repaid at par, and its preferred equity was sold in a change of control transaction. In addition to the second lien term loans of $27.9 million and the preferred equity of $10.7 million being repaid in full including all accrued interest, the Company also received approximately $35.6 million of additional proceeds, interest and fees. The Company recognized a gain of $31.2 million, which is included in the net realized gain (loss) from investments in the Company’s consolidated statement of operations from the sale. The SIA-Easy Ice, LLC Taxable Blocker was sold as part of this transaction. On March 28, 2012, our wholly-owned subsidiary, Saratoga Investment Corp. SBIC, LP (“SBIC LP”), received a Small Business Investment Company (“SBIC”) license from the Small Business Administration (“SBA”). On August 14, 2019, our wholly-owned subsidiary, Saratoga Investment Corp. SBIC II LP (“SBIC II LP”), also received an SBIC license from the SBA. The new license will provide up to $175.0 million in additional long-term capital in the form of SBA debentures. F- 17 Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), are stated in U.S. Dollars and include the accounts of the Company and its special purpose financing subsidiaries, Saratoga Investment Funding, LLC (previously known as GSC Investment Funding LLC), SBIC LP, SBIC II LP, SIA-Avionte, Inc., SIA-GH, Inc., SIA-MAC, Inc., SIA-PP, Inc., SIA-TG, Inc., SIA-TT, Inc., SIA-Vector, Inc. and SIA-VR, Inc. All intercompany accounts and transactions have been eliminated in consolidation. All references made to the “Company,” “we,” and “us” herein include Saratoga Investment Corp. and its consolidated subsidiaries, except as stated otherwise. The Company, SBIC LP and SBIC II LP are all considered to be investment companies for financial reporting purposes and have applied the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “ Financial Services — Investment Companies ” (“ASC 946”). There have been no changes to the Company, SBIC LP or SBIC II LP’s status as investment companies during the year ended February 28, 2021. Use of Estimates in the Preparation of Financial Statements The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and income, gains (losses) and expenses during the period reported. Actual results could differ materially from those estimates. Cash and Cash Equivalents Cash and cash equivalents include short-term, liquid investments in a money market fund. Cash and cash equivalents are carried at cost which approximates fair value. Per section 12(d)(1)(A) of the 1940 Act, the Company may not invest in another registered investment company such as, a money market fund if such investment would cause the Company to exceed any of the following limitations: ● we were to own more than 3.0% of the total outstanding voting stock of the money market fund; ● we were to hold securities in the money market fund having an aggregate value in excess of 5.0% of the value of our total assets, except as allowed pursuant to Rule 12d1-1 of Section 12(d)(1) of the 1940 Act which is designed to permit “cash sweep” arrangements rather than investments directly in short-term instruments; or ● we were to hold securities in money market funds and other registered investment companies and BDCs having an aggregate value in excess of 10.0% of the value of our total assets. As of February 28, 2021, the Company did not exceed any of these limitations. Cash and Cash Equivalents, Reserve Accounts Cash and cash equivalents, reserve accounts include amounts held in designated bank accounts in the form of cash and short-term liquid investments in money market funds, representing payments received on secured investments or other reserved amounts associated with the Company’s $45.0 million senior secured revolving credit facility with Madison Capital Funding LLC. The Company is required to use these amounts to pay interest expense, reduce borrowings, or pay other amounts in accordance with the terms of the senior secured revolving credit facility. In addition, cash and cash equivalents, reserve accounts also include amounts held in designated bank accounts, in the form of cash and short-term liquid investments in money market funds, within our wholly-owned subsidiary, SBIC LP and SBIC II LP. The statements of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. F- 18 The following table provides a reconciliation of cash and cash equivalents and cash and cash equivalents, reserve accounts reported within the consolidated statements of assets and liabilities that sum to the total of the same such amounts shown in the consolidated statements of cash flows: February 28, 2021 February 29, 2020 February 28, 2019 Cash and cash equivalents $ 18,828,047 $ 24,598,905 $ 30,799,068 Cash and cash equivalents, reserve accounts 11,087,027 14,851,447 31,295,326 Total cash and cash equivalents and cash and cash equivalents, reserve accounts $ 29,915,074 $ 39,450,352 $ 62,094,394 Investment Classification The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, “Control Investments” are defined as investments in companies in which we own more than 25.0% of the voting securities or maintain greater than 50.0% of the board representation. Under the 1940 Act, “Affiliated Investments” are defined as those non-control investments in companies in which we own between 5.0% and 25.0% of the voting securities. Under the 1940 Act, “Non-affiliated Investments” are defined as investments that are neither Control Investments nor Affiliated Investments. Investment Valuation The Company accounts for its investments at fair value in accordance with the FASB ASC Topic 820, Fair Value Measurement (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires the Company to assume that its investments are to be sold or its liabilities are to be transferred at the measurement date in the principal market to independent market participants, or in the absence of a principal market, in the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. Investments for which market quotations are readily available are fair valued at such market quotations obtained from independent third-party pricing services and market makers subject to any decision by our board of directors to approve a fair value determination to reflect significant events affecting the value of these investments. We value investments for which market quotations are not readily available at fair value as approved, in good faith, by our board of directors based on input from our Manager, the audit committee of our board of directors and a third-party independent valuation firm. The Company undertakes a multi-step valuation process each quarter when valuing investments for which market quotations are not readily available, as described below: ● Each investment is initially valued by the responsible investment professionals of the Manager and preliminary valuation conclusions are documented, reviewed and discussed with our senior management; and ● An independent valuation firm engaged by our board of directors independently reviews a selection of these preliminary valuations each quarter so that the valuation of each investment for which market quotes are not readily available is reviewed by the independent valuation firm at least once each fiscal year. In addition, all our investments are subject to the following valuation process: ● The audit committee of our board of directors reviews and approves each preliminary valuation and our Manager and independent valuation firm (if applicable) will supplement the preliminary valuation to reflect any comments provided by the audit committee; and ● Our board of directors discusses the valuations and approves the fair value of each investment, in good faith, based on the input of our Manager, independent valuation firm (to the extent applicable) and the audit committee of our board of directors. F- 19 We use multiple techniques for determining fair value based on the nature of the investment and experience with those types of investments and specific portfolio companies. The selections of the valuation techniques and the inputs and assumptions used within those techniques often require subjective judgements and estimates. These techniques include market comparables, discounted cash flows and enterprise value waterfalls. Fair value is best expressed as a range of values from which the Company determines a single best estimate. The types of inputs and assumptions that may be considered in determining the range of values of our investments include the nature and realizable value of any collateral, the portfolio company’s ability to make payments, market yield trend analysis and volatility in future interest rates, call and put features, the markets in which the portfolio company does business, comparison to publicly traded companies, discounted cash flows and other relevant factors. The Company’s investment in Saratoga Investment Corp. CLO 2013-1, Ltd. (“Saratoga CLO”) is carried at fair value, which is based on a discounted cash flow valuation technique that utilizes prepayment, re-investment and loss inputs based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and comparable yields for equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by our Manager and recommended to our board of directors. Specifically, we use Intex cash flows, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The cash flows use a set of inputs including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The inputs are based on available market data and projections provided by third parties as well as management estimates. The Company uses the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine the valuation for our investment in Saratoga CLO. Because such valuations, and particularly valuations of private investments and private companies, are inherently uncertain, they may fluctuate over short periods of time and may be based on estimates. The determination of fair value may differ materially from the values that would have been used if a ready market for these investments existed. The Company’s net asset value could be materially affected if the determinations regarding the fair value of our investments were materially higher or lower than the values that we ultimately realize upon the disposal of such investments. Derivative Financial Instruments The Company accounts for derivative financial instruments in accordance with FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”). ASC 815 requires recognizing all derivative instruments as either assets or liabilities on the consolidated statements of assets and liabilities at fair value. The Company values derivative contracts at the closing fair value provided by the counterparty. Changes in the values of derivative contracts are included in the consolidated statements of operations. Investment Transactions and Income Recognition Purchases and sales of investments and the related realized gains or losses are recorded on a trade-date basis. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis to the extent that such amounts are expected to be collected. The Company stops accruing interest on its investments when it is determined that interest is no longer collectible. Discounts and premiums on investments purchased are accreted/amortized using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of discounts over the life of the investment and amortization of premiums on investments up to the earliest call date. Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reserved when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as a reduction in principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection. At February 28, 2021, certain investments in two portfolio companies, including preferred equity interests, were on non-accrual status with a fair value of approximately $2.1 million, or 0.4% of the fair value of our portfolio. At February 29, 2020, certain investments in four portfolio companies, including preferred equity interests, were on non-accrual status with a fair value of approximately $2.1 million, or 0.4% of the fair value of our portfolio. Interest income on our investment in Saratoga CLO is recorded using the effective interest method in accordance with the provisions of ASC Topic 325, Investments-Other, Beneficial Interests in Securitized Financial Assets , (“ASC 325”), based on the anticipated yield and the estimated cash flows over the projected life of the investment. Yields are revised when there are changes in actual or estimated cash flows due to changes in prepayments and/or re-investments, credit losses or asset pricing. Changes in estimated yield are recognized as an adjustment to the estimated yield over the remaining life of the investment from the date the estimated yield was changed. F- 20 Adoption of ASC 606 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASC 606”), which supersedes the revenue recognition requirements in Revenue Recognition (“ASC 605”). In May 2016, ASU 2016-12 amended ASU 2014-09 and deferred the effective period for annual periods beginning after December 15, 2017. Under the new guidance, the Company recognizes revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Under this standard, revenue is based on a contract with a determinable transaction price and distinct performance obligations with probable collectability. Revenues cannot be recognized until the performance obligation(s) are satisfied and control is transferred to the customer. Management has concluded that the majority of its revenues associated with financial instruments are scoped out of ASC 606, and has concluded that the only significant impact relates to the timing of the recognition of the CLO incentive fee income. The adoption of ASC 606 did not have an impact on the Company’s management fee income or investment income. The Company adopted ASC 606 to all applicable contracts under the modified retrospective approach using the practical expedient provided for within paragraph 606-10-65-1(f)(4); therefore, the presentation of prior year periods has not been adjusted. The Company recognized the cumulative effect of initially adopting ASC 606 as an adjustment to the opening balance of components of equity as of March 1, 2018. Incentive Fee Income Incentive fee income is recognized based on the performance of Saratoga CLO during the period, subject to the achievement of minimum return levels in accordance with the terms set out in the investment management agreement between the Company and Saratoga CLO. Incentive fee income is realized in cash on a quarterly basis. Once realized, such fees are no longer subject to reversal. Upon the adoption of ASC 606, the Company recognizes incentive fee income only when the amount is realized and no longer subject to reversal. Therefore, the Company no longer recognizes unrealized incentive fee income in the consolidated financial statements. The adoption of ASC 606 results in the delayed recognition of unrealized incentive fee income in the consolidated financial statements until it becomes realized at the end of the measurement period and all uncertainties are eliminated, which is typically quarterly. The Company adopted ASC 606 for incentive fee income using the modified retrospective approach with an effective date of March 1, 2018. The cumulative effect of the adoption resulted in the reversal of $0.07 million of unrealized incentive fee income and is presented as a reduction to the opening balances of components of equity as of March 1, 2018. In conjunction with the third refinancing and issuance of the Saratoga CLO’s 2013-1 Reset CLO Notes (the “2013-1 Reset CLO Notes”) on December 14, 2018, the Company is no longer entitled to receive an incentive management fee from Saratoga CLO. See Note 4 for additional information. Prior to the refinancing, the Company received $0.6 million in incentive fees from the Saratoga CLO and is reported as incentive fee income on the Company’s consolidated statement of operations for the year ended February 28, 2019. For the year ended February 28, 2019, the impact on the consolidated statement of operations without the adoption of ASC 606 is shown in the table below: Consolidated Statements of Operations For the Year Ended February 28, 2019 As Reported Adjustments Without Adoption of ASC 606 Incentive fee income $ 633,232 $ (65,300 ) $ 567,932 Total investment income 47,707,963 (65,300 ) 47,642,663 NET INVESTMENT INCOME 18,302,209 (65,300 ) 18,236,909 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 18,509,370 (65,300 ) 18,444,070 WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE $ 2.63 $ (0.01 ) $ 2.62 F- 21 Payment-in-Kind Interest The Company holds debt and preferred equity investments in its portfolio that contain a payment-in-kind (“PIK”) interest provision. The PIK interest, which represents contractually deferred interest added to the investment balance that is generally due at maturity, is generally recorded on the accrual basis to the extent such amounts are expected to be collected. The Company stops accruing PIK interest if it is expected that the issuer will not be able to pay all principal and interest when due. Structuring and Advisory Fee Income Structuring and advisory fee income represents various fee income earned and received performing certain investment structuring and advisory activities during the closing of new investments. Other Income Other income includes dividends received, prepayment income fees, and origination, monitoring, administration and amendment fees and is recorded in the consolidated statements of operations when earned. Deferred Debt Financing Costs Financing costs incurred in connection with our credit facility and notes are deferred and amortized using the straight-line method over the life of the respective facility and debt securities. Financing costs incurred in connection with our SBA debentures are deferred and amortized using the straight-line method over the life of the debentures. The Company presents deferred debt financing costs on the balance sheet as a contra-liability as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Contingencies In the ordinary course of business, the Company may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Company. Based on its history and experience, management feels that the likelihood of such an event is remote. Therefore, the Company has not accrued any liabilities in connection with such indemnifications. In the ordinary course of business, the Company may directly or indirectly be a defendant or plaintiff in legal actions with respect to bankruptcy, insolvency or other types of proceedings. Such lawsuits may involve claims that could adversely affect the value of certain financial instruments owned by the Company. Income Taxes The Company has elected to be treated for tax purposes as a RIC under the Code and, among other things, intends to make the requisite distributions to its stockholders which will relieve the Company from federal income taxes. Therefore, no provision has been recorded for federal income taxes, except as related to the Taxable Blockers and long-term capital gains, when applicable. In order to qualify as a RIC, among other requirements, the Company is required to timely distribute to its stockholders at least 90.0% of its investment company taxable income, as defined by the Code, for each fiscal tax year. The Company will be subject to a nondeductible U.S. federal excise tax of 4.0% on undistributed income if it does not distribute at least 98.0% 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. Depending on the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year dividend distributions into the next tax year and pay a 4.0% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions for excise tax purposes, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. For the year ended February 28, 2021, the excise tax accrual on estimated excess table income was $0.7 million. F- 22 In accordance with certain applicable U.S. Treasury regulations and private letter rulings issued by the Internal Revenue Service (“IRS”), a RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder may elect to receive his or her entire distribution in either cash or stock of the RIC subject to a limitation on the aggregate amount of cash to be distributed to all stockholders, which limitation must be at least 20.0% of the aggregate declared distribution. If too many stockholders elect to receive cash, each stockholder electing to receive cash will receive a pro rata amount of cash (with the balance of the distribution paid in stock). In no event will any stockholder, electing to receive cash, receive less than 20.0% of his or her entire distribution in cash. If these and certain other requirements are met, for U.S federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock. The Company may utilize wholly-owned holding companies taxed under Subchapter C of the Code or tax blockers, when making equity investments in portfolio companies taxed as pass-through entities to meet its source-of-income requirements as a RIC. Taxable Blockers are consolidated in the Company’s U.S. GAAP financial statements and may result in current and deferred federal and state income tax expense with respect to income derived from those investments. Such income, net of applicable income taxes, is not included in the Company’s tax-basis net investment income until distributed by the Taxable Blocker, which may result in timing and character differences between the Company’s U.S. GAAP and tax-basis net investment income and realized gains and losses. Income tax expense or benefit from Taxable Blockers related to net investment income are included in total operating expenses, while any expense or benefit related to federal or state income tax originated for capital gains and losses are included together with the applicable net realized or unrealized gain or loss line item. Deferred tax assets of the Taxable Blockers are reduced by a valuation allowance when, in the opinion of management, it is more-likely than-not that some portion or all of the deferred tax assets will not be realized. FASB ASC Topic 740, Income Taxes , (“ASC 740”), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet a “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current period. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the consolidated statements of operations. During the fiscal year ended February 28, 2021 the Company did not incur any interest or penalties. Although we file federal and state tax returns, our major tax jurisdiction is federal. The 2018, 2019 and 2020 federal tax years for the Company remain subject to examination by the IRS. At February 28, 2021, and February 29, 2020, there were no uncertain tax positions. The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change significantly in the next 12 months. Dividends Dividends to common stockholders are recorded on the ex-dividend date. The amount to be paid out as a dividend is determined by the board of directors. Net realized capital gains, if any, are generally distributed at least annually, although we may decide to retain such capital gains for reinvestment. We have adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of our dividend distributions on behalf of our stockholders unless a stockholder elects to receive cash. As a result, if our board of directors authorizes, and we declare, a cash dividend, then our stockholders who have not “opted out” of the DRIP by the dividend record date will have their cash dividends automatically reinvested into additional shares of our common stock, rather than receiving the cash dividends. We have the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Capital Gains Incentive Fee The Company records an expense accrual on the consolidated statements of operations, relating to the capital gains incentive fee payable on the consolidated statements of assets and liabilities, by the Company to the Manager when the net realized and unrealized gain on its investments exceed all net realized and unrealized capital losses on its investments given the fact that a capital gains incentive fee would be owed to the Manager if the Company were to liquidate its investment portfolio at such time. The actual incentive fee payable to the Company’s Manager related to capital gains will be determined and payable in arrears at the end of each fiscal year and only reflected those realized capital gains net of realized and unrealized losses for the period. F- 23 New Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. Management does not believe this optional guidance has a material impact on the Company’s consolidated financial statements and disclosures. SEC Rule 12b-2 Update In March 2020, the SEC adopted a final rule under SEC Release No. 34-88365 (the “Final Rule”), amending the accelerated filer and large accelerated filer definitions in Exchange Act Rule 12b-2. The amendments include a provision under which a BDC will be excluded from the “accelerated filer” and “large accelerated filer” definitions if the BDC has (1) a public float of $75 million or more, but less than $700 million, and (2) has annual investment income of less than $100 million. In addition, BDCs are subject to the same transition provisions for accelerated filer and large accelerated filer status as other issuers, but instead substituting investment income for revenue. The amendments will reduce the number of issuers required to comply with the auditor attestation on the internal control over financial reporting requirement provided under Section 404(b) of the Sarbanes-Oxley Act of 2002. The Final Rule applies to annual report filings due on or after April 27, 2020. The Company has assessed the Final Rule, and concluded that effective February 28, 2021, it is no longer an accelerated filer. As a result, the Company has filed this Annual Report on Form 10-K for the fiscal year ending February 28, 2021 as a non-accelerated filer. SEC Disclosure Update and Simplification In March 2019, the U.S. Securities Exchange Commission (the “SEC”) adopted the final rule under SEC Release No. 33-10618, Fast Act Modernization and Simplification of Regulation S-K , amending certain disclosure requirements. The amendments are intended to simplify certain disclosure requirements and to provide for a consistent set of rules to govern incorporating information by reference and hyperlinking, improve readability and navigability of disclosure documents, and discourage repetition and disclosure of immaterial information. The Company has adopted the final rule, as applicable under SEC Release No. 33-10618 and determined the effect of the adoption of the simplification rules on financial statements will be limited to the modification and removal of certain disclosures. Risk Management In the ordinary course of its business, the Company manages a variety of risks, including market risk and credit risk. Market risk is the risk of potential adverse changes to the value of investments because of changes in market conditions such as interest rate movements and volatility in investment prices. Credit risk is the risk of default or non-performance by portfolio companies, equivalent to the investment’s carrying amount. The Company is also exposed to credit risk related to maintaining all of its cash and cash equivalents, including those in reserve accounts, at a major financial institution and credit risk related to any of its derivative counterparties. The Company has investments in lower rated and comparable quality unrated high yield bonds and bank loans. Investments in high yield investments are accompanied by a greater degree of credit risk. The risk of loss due to default by the issuer is significantly greater for holders of high yield securities, because such investments are generally unsecured and are often subordinated to other creditors of the issuer. F- 24 Note 3. Investments As noted above, the Company values all investments in accordance with ASC 820. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between independent market participants at the measurement date. ASC 820 establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Based on the observability of the inputs used in the valuation techniques, the Company is required to provide disclosures on fair value measurements according to the fair value hierarchy. The fair value hierarchy ranks the observability of the inputs used to determine fair values. Investments carried at fair value are classified and disclosed in one of the following three categories: ● Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. ● Level 2—Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date. Such inputs may be quoted prices for similar assets or liabilities, quoted markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full character of the financial instrument, or inputs that are derived principally from, or corroborated by, observable market information. Investments which are generally included in this category include illiquid debt securities and less liquid, privately held or restricted equity securities, for which some level of recent trading activity has been observed. ● Level 3—Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs may be based on the Company’s own assumptions about how market participants would price the asset or liability or may use Level 2 inputs, as adjusted, to reflect specific investment attributes relative to a broader market assumption. Even if observable market data for comparable performance or valuation measures (earnings multiples, discount rates, other financial/valuation ratios, etc.) are available, such investments are grouped as Level 3 if any significant data point that is not also market observable (private company earnings, cash flows, etc.) is used in the valuation technique. We use multiple techniques for determining fair value based on the nature of the investment and experience with those types of investments and specific portfolio companies. The selections of the valuation techniques and the inputs and assumptions used within those techniques often require subjective judgements and estimates. These techniques include market comparables, discounted cash flows and enterprise value waterfalls. Fair value is best expressed as a range of values from which the Company determines a single best estimate. The types of inputs and assumptions that may be considered in determining the range of values of our investments include the nature and realizable value of any collateral, the portfolio company’s ability to make payments, market yield trend analysis and volatility in future interest rates, call and put features, the markets in which the portfolio company does business, comparison to publicly traded companies, discounted cash flows and other relevant factors. In addition to using the above inputs in investment valuations, the Company continues to employ the valuation policy approved by the board of directors that is consistent with ASC 820 and the 1940 Act (see Note 2). Consistent with our valuation policy, we evaluate the source of inputs, including any markets in which our investments are trading, in determining fair value. The following table presents fair value measurements of investments, by major class, as of February 28, 2021 (dollars in thousands), according to the fair value hierarchy: Fair Value Measurements Level 1 Level 2 Level 3 Total First lien term loans $ - $ - $ 440,456 $ 440,456 Second lien term loans - - 24,930 24,930 Unsecured term loans - - 2,141 2,141 Structured finance securities - - 49,779 49,779 Equity interests - - 37,007 37,007 Total $ - $ - $ 554,313 $ 554,313 F- 25 The following table presents fair value measurements of investments, by major class, as of February 29, 2020 (dollars in thousands), according to the fair value hierarchy: Fair Value Measurements Level 1 Level 2 Level 3 Total First lien term loans $ - $ - $ 346,233 $ 346,233 Second lien terms loans - - 73,570 73,570 Unsecured term loans - - 4,346 4,346 Structured finance securities - - 32,470 32,470 Equity interests - - 29,013 29,013 Total $ - $ - $ 485,632 $ 485,632 The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended February 28, 2021 (dollars in thousands): First lien term loans Second lien term loans Unsecured term loans Structured finance securities Equity interests Total Balance as of February 29, 2020 $ 346,233 $ 73,570 $ 4,346 $ 32,470 $ 29,013 $ 485,632 Payment-in-kind and other adjustments to cost 828 1,993 - (3,674 ) (120 ) (973 ) Net accretion of discount on investments 1,147 243 - - - 1,390 Net change in unrealized appreciation (depreciation) on investments (4,267 ) (3,053 ) 295 (892 ) 12,883 4,966 Purchases 142,970 - 22,500 31,875 4,916 202,261 Sales and repayments (46,477 ) (47,823 ) (25,000 ) (10,000 ) (959 ) (130,259 ) Net realized gain (loss) from investments 22 - - - (8,726 ) (8,704 ) Balance as of February 28, 2021 $ 440,456 $ 24,930 $ 2,141 $ 49,779 $ 37,007 $ 554,313 Net change in unrealized appreciation (depreciation) for the year relating to those Level 3 assets that were still held by the Company at the end of the year $ (3,866 ) $ (2,832 ) $ - $ (979 ) $ 5,137 $ (2,540 ) Purchases and other adjustments to cost include purchases of new investments at cost, effects of refinancing/restructuring, accretion/amortization of income from discount/premium on debt securities, and PIK interests. Sales and repayments represent net proceeds received from investments sold, and principal paydowns received, during the year. Transfers and restructurings, if any, are recognized at the beginning of the period in which they occur. There were no restructures in or out of Levels 1, 2, or 3 during the year ended February 28, 2021. F- 26 The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended February 29, 2020 (dollars in thousands): First lien term loans Second lien term loans Unsecured term loans Structured finance securities Equity interests Total Balance as of February 28, 2019 $ 202,846 $ 125,786 $ 2,100 $ 35,328 $ 35,960 $ 402,020 Payment-in-kind and other adjustments to cost 673 2,874 45 4 (550 ) 3,046 Net accretion of discount on investments 799 271 - - - 1,070 Net change in unrealized appreciation (depreciation) on investments 2,614 99 (299 ) (2,862 ) (323 ) (771 ) Purchases 197,059 - 2,500 - 5,084 204,643 Sales and repayments (56,890 ) (55,460 ) - - (54,903 ) (167,253 ) Net realized gain (loss) from investments (868 ) - - - 43,745 42,877 Balance as of February 29, 2020 $ 346,233 $ 73,570 $ 4,346 $ 32,470 $ 29,013 $ 485,632 Net change in unrealized appreciation (depreciation) for the year relating to those Level 3 assets that were still held by the Company at the end of the year $ 1,546 $ 140 $ (299 ) $ (2,863 ) $ 4,069 $ 2,593 Sales and repayments represent net proceeds received from investments sold, and principal paydowns received, during the year. Transfers and restructurings, if any, are recognized at the beginning of the period in which they occur. There were no restructures in or out of Levels 1, 2, or 3 during the year ended February 29, 2020. The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of February 28, 2021 were as follows (dollars in thousands): Fair Value Valuation Technique Unobservable Input Range Weighted Average* First lien term loans $ 440,456 Market Comparables Market Yield (%) 5.8% - 18.7% 9.7% EBITDA Multiples (x) 6.8x 6.8x Revenue Multiples (x) 4.1x - 8.0x 7.5x Second lien term loans 24,930 Market Comparables Market Yield (%) 10.0% - 24.5% 16.5% EBITDA Multiples (x) 7.5x 7.5x Unsecured term loans 2,141 Market Comparables Market Yield (%) 31.1% 31.1% EBITDA Multiples (x) 5.2x 5.2x Structured finance securities 49,779 Discounted Cash Flow Discount Rate (%) 10.0% - 15.0% 13.8% Recovery Rate (%) 35.0% - 70.0% 70.0% Prepayment Rate (%) 20.0% 20.0% Equity interests 37,007 Enterprise Value Waterfall EBITDA Multiples (x) 4.0x - 14.0x 9.7x Revenue Multiples (x) 0.5x - 38.3x 4.6x Total $ 554,313 * The weighted average in the table above is calculated based on each investment’s fair value weighting, using the applicable unobservable input, excluding the recovery rate for Structured finance securities. F- 27 The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of February 29, 2020 were as follows (dollars in thousands): Fair Value Valuation Technique Unobservable Input Range Weighted Average* First lien term loans $ 346,233 Market Comparables Market Yield (%) 7.8% - 12.5% 9.7% EBITDA Multiples (x) 0.0x 0.0x Second lien term loans 73,570 Market Comparables Market Yield (%) 9.5% - 85.1% 13.0% EBITDA Multiples (x) 5.0x 5.0x Unsecured term loans 4,346 Market Comparables Market Yield (%) 18.3% - 21.3% 19.8% EBITDA Multiples (x) 5.2x 5.2x Structured finance securities 32,470 Discounted Cash Flow Discount Rate (%) 9.25% - 16.00% 14.2% Recovery Rate (%) 35.0% - 70.0% 70.0% Prepayment Rate (%) 20.0% 20.0% Equity interests 29,013 Enterprise Value Waterfall EBITDA Multiples (x) 4.0x - 14.0x 6.5x Total $ 485,632 Revenue Multiples (x) 1.0x - 40.7x 7.3x * The weighted average in the table above is calculated based on each investment’s fair value weighting, using the applicable unobservable input, excluding the recovery rate for Structured finance securities. For investments utilizing a market comparables valuation technique, a significant increase (decrease) in the market yield, in isolation, would result in a significantly lower (higher) fair value measurement, and a significant increase (decrease) in any of the earnings before interest, tax, depreciation and amortization (“EBITDA”) or revenue valuation multiples, in isolation, would result in a significantly higher (lower) fair value measurement. For investments utilizing a discounted cash flow valuation technique, a significant increase (decrease) in the discount rate, and prepayment rate, in isolation, would result in a significantly lower (higher) fair value measurement while a significant increase (decrease) in recovery rate, in isolation, would result in a significantly higher (lower) fair value measurement. For investments utilizing a market quote in deriving a value, a significant increase (decrease) in the market quote, in isolation, would result in a significantly higher (lower) fair value measurement. The composition of our investments as of February 28, 2021 at amortized cost and fair value was as follows (dollars in thousands): Investments at Amortized Cost Amortized Cost Percentage of Total Portfolio Investments at Fair Value Fair Value Percentage of Total Portfolio First lien term loans $ 441,590 80.3 % $ 440,456 79.5 % Second lien term loans 29,891 5.4 24,930 4.4 Unsecured term loans 2,261 0.4 2,141 0.4 Structured finance securities 51,722 9.4 49,779 9.0 Equity interests 24,550 4.5 37,007 6.7 Total $ 550,014 100.0 % $ 554,313 100.0 % F- 28 The composition of our investments as of February 29, 2020 at amortized cost and fair value was as follows (dollars in thousands): Investments at Amortized Cost Amortized Cost Percentage of Total Portfolio Investments at Fair Value Fair Value Percentage of Total Portfolio First lien term loans $ 343,100 70.5 % $ 346,233 71.3 % Second lien term loans 75,478 15.5 73,570 15.1 Unsecured term loans 4,761 1.0 4,346 0.9 Structured finance securities 33,521 6.9 32,470 6.7 Equity interests 29,439 6.1 29,013 6.0 Total $ 486,299 100.0 % $ 485,632 100.0 % For loans and debt securities for which market quotations are not available, we determine their fair value based on third party indicative broker quotes, where available, or the inputs that a hypothetical market participant would use to value the security in a current hypothetical sale using a market comparables valuation technique. In applying the market comparables valuation technique, we determine the fair value based on such factors as market participant inputs including synthetic credit ratings, estimated remaining life, current market yield and interest rate spreads of similar securities as of the measurement date. If, in our judgment, the market comparables technique is not sufficient or appropriate, we may use additional techniques such as an asset liquidation or expected recovery model. For equity securities of portfolio companies and partnership interests, we determine the fair value using an enterprise value waterfall valuation technique. Under the enterprise value waterfall valuation technique, we determine the enterprise fair value of the portfolio company and then waterfall the enterprise value over the portfolio company’s securities in order of their preference relative to one another. To estimate the enterprise value of the portfolio company, we weigh some or all of the traditional market valuation techniques and factors based on the individual circumstances of the portfolio company in order to estimate the enterprise value. The techniques for performing investments may be based on, among other things: valuations of comparable public companies, recent sales of private and public comparable companies, discounting the forecasted cash flows of the portfolio company, third party valuations of the portfolio company, considering offers from third parties to buy the company, estimating the value to potential strategic buyers and considering the value of recent investments in the equity securities of the portfolio company. For non-performing investments, we may estimate the liquidation or collateral value of the portfolio company’s assets and liabilities. We also take into account historical and anticipated financial results. Our investment in Saratoga CLO is carried at fair value, which is based on a discounted cash flow valuation technique that utilizes prepayment, re-investment and loss inputs based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and comparable yields for equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by our Manager and recommended to our board of directors. Specifically, we use Intex cash flows, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The cash flows use a set of inputs including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The inputs are based on available market data and projections provided by third parties as well as management estimates. In connection with the refinancing of the Saratoga CLO liabilities, we ran Intex models based on inputs about the refinanced Saratoga CLO’s structure, including capital structure, cost of liabilities and reinvestment period. We use the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine a valuation for our investment in Saratoga CLO at February 28, 2021. The inputs at February 28, 2021 for the valuation model include: ● Default rate: 2.0% ● Recovery rate: 35-70% ● Discount rate: 15.0% ● Prepayment rate: 20.0% ● Reinvestment rate / price: L+365bps / $99.00 F- 29 Investment Concentration Set forth is a brief description of each portfolio company in which the fair value of our investment represents greater than 5% of our total assets as of February 28, 2021. CLEO Communications Holding, LLC CLEO Communications Holding, LLC (“Cleo”) is a provider of technology enabled data communication and integration platform for daily business transactions. Cleo’s platform allows for the automation of business-to-business transaction information for customers operating in the retail, manufacturing, logistics and the healthcare verticals. The platform also allows for internal application-to-application communication, allowing customers’ core enterprise software applications to easily share and transfer data. Destiny Solutions Inc. Destiny Solutions provides a SaaS-based student lifecycle management (“SLM”) software solution used by higher education institutions to manage their continuing education (“CE”) and non-degree educational programs for “non-traditional” students who fall outside of the “traditional” student profile. Traditional students are full-time students working toward an undergraduate, graduate, or doctorate degree. Destiny’s software acts as the ERP, CRM, e-commerce platform, and student information management system for non-traditional student programs. Saratoga Investment Corp. CLO 2013-1, Ltd. The Company has a collateral management agreement with Saratoga CLO, pursuant to which the Company acts as its collateral manager. The Saratoga CLO invests primarily in senior secured first lien term loans. The Company also holds an investment in the subordinated note and Class F-R-3. F- 30 Note 4. Investment in Saratoga Investment Corp. CLO 2013-1, Ltd. (“Saratoga CLO”) On January 22, 2008, the Company entered into a collateral management agreement with Saratoga CLO, pursuant to which the Company acts as its collateral manager. The Saratoga CLO was initially refinanced in October 2013 with its reinvestment period extended to October 2016. On November 15, 2016, the Company completed a second refinancing of the Saratoga CLO with its reinvestment period extended to October 2018. On August 7, 2018, the Company entered into an unsecured loan agreement (“CLO 2013-1 Warehouse Loan”) with Saratoga Investment Corp. CLO 2013-1 Warehouse, Ltd. (“CLO 2013-1 Warehouse”), a wholly-owned subsidiary of Saratoga CLO, pursuant to which CLO 2013-1 Warehouse may borrow from time to time up to $20 million from the Company in order to provide capital necessary to support warehouse activities. The CLO 2013-1 Warehouse Loan, which expired on February 7, 2020, bears interest at an annual rate of 3M USD LIBOR + 7.5%. Interest accrued on the investment in the CLO 2013-1 Warehouse Loan is included in interest income on the Company’s consolidated statement of operations. During the year ended February 28, 2019, the maximum amount invested by the Company in the CLO 2013-1 Warehouse Loan amounted to $20.0 million and at February 29, 2020, the Company no longer held an investment in the CLO 2013-1 Warehouse Loan. On December 14, 2018, the Company completed a third refinancing and upsize of the Saratoga CLO (the “2013-1 Reset CLO Notes”). The third Saratoga CLO refinancing, among other things, extended its reinvestment period to January 2021, and extended its legal maturity date to January 2030. A non-call period ending January 2020 was also added. Following this refinancing, the Saratoga CLO portfolio increased from approximately $300.0 million in aggregate principal amount to approximately $500.0 million of predominantly senior secured first lien term loans. In addition to refinancing its liabilities, the Company invested an additional $13.8 million in all of the newly issued subordinated notes of the Saratoga CLO and also purchased $2.5 million in aggregate principal amount of the Class F-R-2 and $7.5 million aggregate principal amount of the Class G-R-2 notes tranches at par, with a coupon of 3M USD LIBOR plus 8.75% and 3M USD LIBOR plus 10.00%, respectively. As part of this refinancing, the Company also redeemed our existing $4.5 million aggregate amount of the Class F notes tranche at par and the $20.0 million CLO 2013-Warehouse loan was repaid. On February 11, 2020, the Company entered into an unsecured loan agreement with Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd., (“CLO 2013-1 Warehouse 2”) a wholly-owned subsidiary Saratoga CLO, pursuant to which CLO 2013-1 Warehouse 2 may borrow from time to time up to $20.0 million from the Company in order to provide capital necessary to support warehouse activities. On October 23, 2020, the CLO 2013-1 Warehouse 2 Loan was increased to $25.0 million availability, which was immediately fully drawn and, which expires on August 20, 2021. The interest rate was also amended to be based on a pricing grid, starting at an annual rate of 3M USD LIBOR + 4.46%. On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. A non-call period ending February 2022 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. As of February 28, 2021, there remained an outstanding receivable of $2.6 million for such transaction costs which is presented as due from affiliate on the Company’s consolidated statement of assets and liabilities. The Saratoga CLO remains 100.0% owned and managed by the Company. We receive a base management fee of 0.10% per annum and a subordinated management fee of 0.40% per annum of the outstanding principal amount of Saratoga CLO’s assets, paid quarterly to the extent of available proceeds. Following the third refinancing and the issuance of the 2013-1 Reset CLO Notes on December 14, 2018, we are no longer entitled to an incentive management fee equal to 20.0% of excess cash flow to the extent the Saratoga CLO subordinated notes receive an internal rate of return paid in cash equal to or greater than 12.0%. For the years ended February 28, 2021, February 29, 2020 and February 28, 2019, we accrued management fee income of $2.5 million, $2.5 million and $1.7 million, respectively, and interest income of $3.5 million, $4.1 million and $2.9 million, respectively, from the Saratoga CLO. F- 31 Prior to the refinancing, incentive fee income of $0.6 million for the year ended February 28, 2019, was recognized related to the Saratoga CLO, reflecting the 12.0% hurdle rate that has been achieved. The incentive fee income from the Saratoga CLO is reported as incentive fee income on the Company’s consolidated statement of operations. As of February 28, 2021, the Company determined that the fair value of its investment in the subordinated notes of Saratoga CLO was $31.4 million. The Company determines the fair value of its investment in the subordinated notes of Saratoga CLO based on the present value of the projected future cash flows of the subordinated notes over the life of Saratoga CLO. As of February 28, 2021, the fair value of its investment in the Class F-R-3 Notes was $18.3 million, As of February 28, 2021, Saratoga CLO had investments with a principal balance of $603.7 million and a weighted average spread over LIBOR of 3.8% and had debt with a principal balance of $611.0 million with a weighted average spread over LIBOR of 2.2%. As a result, Saratoga CLO earns a “spread” between the interest income it receives on its investments and the interest expense it pays on its debt and other operating expenses, which is distributed quarterly to the Company as the holder of its subordinated notes. As of February 28, 2021, the present value of the projected future cash flows of the subordinated notes was approximately $31.7 million, using a 15.0% discount rate. The Company’s total investment in the subordinate notes of Saratoga CLO is $57.8 which consists of additional investments of $30 million in January 2008, $13.8 million in December 2018 and $14.0 million in February 2021; to date the Company has since received distributions of $67.5 million, management fees of $24.9 million and incentive fees of $1.2 million. In conjunction with the third refinancing of the 2013-1 Reset CLO Notes on December 14, 2018, the Company is no longer entitled to receive an incentive management fee from Saratoga CLO. As of February 29, 2020, the Company determined that the fair value of its investment in the subordinated notes of Saratoga CLO was $22.6 million. As of February 29, 2020, the fair value of its investment in the Class F-R-2 Notes and G-R-2 Notes of Saratoga CLO was $2.5 million and $7.4 million, respectively. As of February 29, 2020, Saratoga CLO had investments with a principal balance of $528.4 million and a weighted average spread over LIBOR of 4.0% and had debt with a principal balance of $475.1 million with a weighted average spread over LIBOR of 2.2%. As of February 29, 2020, the present value of the projected future cash flows of the subordinated notes, was approximately $22.9 million, using a 16.0% discount rate. For the fourth quarter ended February 28, 2021, the F-R-2 Notes and G-R-2 Notes were redeemed in full. The separate audited financial statements of the Saratoga CLO as of February 28, 2021 and February 29, 2020, pursuant to Rule 3-09 of SEC rules Regulation S-X, and for the years ended February 28, 2021, February 29, 2020 and February 28, 2019, are presented on page S-1. Note 5. Income Taxes The Company intends to operate so as to qualify to be taxed as a RIC under Subchapter M of the Code and, as such, will not be subject to U.S. federal income tax on the portion of taxable income and gains distributed to stockholders. The Company owns 100.0% of Saratoga CLO, an exempted company incorporated in the Cayman Islands. For financial reporting purposes, the Saratoga CLO is not included as part of the consolidated financial statements. For federal income tax purposes, the Company has requested and received approval from the IRS to treat the Saratoga CLO as a disregarded entity. As such, for U.S. federal income tax purposes and for purposes of meeting the RIC qualification and diversification tests, the results of operations of the Saratoga CLO are included with those of the Company to qualify as a RIC. The Company is required to meet certain income and asset diversification tests in addition to timely distributing at least 90.0% of its investment company taxable income, as defined by the Code. Because U.S. federal income tax regulations differ from U.S. GAAP, distributions as required in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences between these distributions and U.S. GAAP financial results may be permanent or temporary in nature. Permanent differences are reclassified among capital accounts in the consolidated financial statements to reflect their tax character. Differences in classification may also result from the treatment of short-term gains as ordinary income for U.S. federal income tax purposes. As of February 28, 2021 and February 29, 2020, the Company reclassified for book purposes amounts arising from permanent book/tax differences primarily related to nondeductible U.S. federal excise and capital gains tax and worthless securities losses (dollars in thousands): February 28, 2021 February 29, 2020 Capital in excess of par value $ (16,529 ) $ (1,843 ) Total distributable earnings (loss) 16,529 1,843 F- 32 For U.S federal income tax purposes, distributions paid to shareholders are reported as ordinary income, return of capital, long term capital gains or a combination thereof. The tax character of distributions paid for the years ended February 28, 2021, February 29, 2020 and February 28, 2019 was as follows (dollars in thousands): February 28, 2021 February 29, 2020 February 28, 2019 Ordinary income $ 13,747 $ 15,292 $ 14,189 Capital gains - 4,806 - Total $ 13,747 $ 20,098 $ 14,189 For federal income tax purposes, as of February 28, 2021, the aggregate net unrealized appreciation for all securities was $12.2 million. The aggregate cost of securities for federal income tax purposes was $1.1 billion. For federal income tax purposes, as of February 29, 2020, the aggregate net unrealized depreciation for all securities was $17.5 million. The aggregate cost of securities for federal income tax purposes was $969.4 million. As of February 28, 2021 and February 29, 2020, the components of accumulated losses on a tax basis as detailed below differ from the amounts reflected per the Company’s consolidated statements of assets and liabilities by temporary book/tax differences primarily arising from the consolidation of the Saratoga CLO for U.S federal tax purposes, market discount and original issue discount income, interest income accrual on defaulted bonds, write-off of investments, and amortization of organizational expenditures and partnership interests (dollars in thousands). February 28, 2021 February 29, 2020 Post October loss deferred $ - $ - Accumulated capital losses (19,461 ) - Other temporary differences 729 174 Undistributed Long Term Gain - 18,549 Undistributed ordinary income 7,903 - Unrealized appreciation (depreciation) 12,176 (14,887 ) Total components of accumulated losses $ 1,347 $ 3,836 At February 28, 2021, the Company had a short-term capital loss of $0.4 million and a long-term capital loss of $19.1 million, available to offset future capital gains. Post RIC-modernization act losses are deemed to arise on the first day of the fund’s following fiscal year and there is no expiration for these losses. Depending on the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year dividend distributions into the next tax year and pay a 4.0% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions for excise tax purposes, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. For the calendar year ended December 31, 2020, the Company did not distribute at least 98% of its ordinary income and 98.2% of its capital gains and accrued $0.7 million in federal excise taxes on undistributed taxable income for the year ended February 28, 2021. As of February 29, 2020, the Company had net capital gains of $21.9 million. The Company utilized $10.7 million of short-term capital loss carryovers and $4.3 million of long-term capital loss carryovers during the fiscal year ended February 29,2020. These prior years losses were deemed to arise on the first day of the Company’s fiscal year. As of February 29, 2020, the Company has no remaining capital loss carryovers. Management has analyzed the Company’s tax positions taken on federal income tax returns for all open years (fiscal years 2018- 2021) and has concluded that no provision for uncertain income tax positions is required in the Company’s consolidated financial statements. On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was enacted, and the provisions with the Modernization were are effective for the Company for the year ended February 29, 2012. The Modernization Act was the first major piece of legislation affecting RICs since 1986 and it modernized several of the U.S. federal income and U.S. federal excise tax provisions related to RICs. Some highlights of the enacted provisions are as follows: F- 33 New capital losses may now be carried forward indefinitely and retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss. The Modernization Act contains simplification provisions, which are aimed at preventing disqualification of a RIC for “inadvertent” failures of the asset diversification and/or qualifying income tests. Additionally, the Modernization Act exempts RICs from the preferential dividend rule and repealed the 60-day designation requirement for certain types of pay-through income and gains. Finally, the Modernization Act contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions. SIA-Avionte, Inc., SIA-GH Inc., SIA-MAC, Inc., SIA-PP Inc., SIA-TG, Inc., SIA-TT, Inc., SIA-Vector, Inc., and SIA-VR, Inc., each 100% owned by the Company, are each filing standalone C Corporation tax returns for federal and state purposes. As separately regarded entities for tax purposes, these entities are taxed at normal corporate rates. For tax purposes, any distributions by the entities to the parent company would generally need to be distributed to the Company’s shareholders. Generally, such distributions of the entities’ income to the Company’s shareholders will be considered as qualified dividends for tax purposes. The entities’ taxable net income will differ from U.S. GAAP net income because of deferred tax temporary differences arising from net operating losses and unrealized appreciation and deprecation of securities held. Deferred tax assets and liabilities are measured using enacted corporate federal and state tax rates expected to apply to taxable income in the years in which those net operating losses are utilized and the unrealized gains and losses are realized. Deferred tax assets and deferred tax liabilities are netted off by entity, as allowed. The recoverability of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of a history of operating losses combined with insufficient projected taxable income or other taxable events in the taxable blockers. The Company’s Easy Ice investment was sold during the year ended February 29, 2020. As part of the transaction, the actual legal entity, SIA-Easy Ice, LLC (“Tax Blocker”) that owned the preferred equity was sold. This Tax Blocker was a wholly-owned subsidiary of the Company. For purposes of tax accounting, the Company had an $8.0 million tax basis in the Tax Blocker. The Company may distribute a portion of its realized net long term capital gains in excess of realized net short term capital losses to its stockholders, but may also decide to retain a portion, or all, of its net capital gains and elect to pay the 21% U.S. federal tax on the net capital gain, potentially in the form of a “deemed distribution” to its stockholders. Income tax (provision) relating to an election to retain its net capital gains, including in the form of a deemed distribution, is included as a component of income tax (provision) benefit from realized gains on investments, depending on the character of the underlying taxable income (ordinary or capital gains), on the consolidated statements of operations. During the year ended February 28, 2021, the Company paid federal tax of $3.9 million on the undistributed net capital gains it elected to retain for the tax year ended February 29, 2020. Deferred tax assets and liabilities, and related valuation allowances, as of February 28, 2021, February 29, 2020 and February 28, 2019, were as follows: February 28, 2021 February 29, 2020 February 28, 2019 Total deferred tax assets $ 2,108,556 $ 1,744,879 $ 2,533,426 Total deferred tax liabilities (1,987,120 ) (1,412,486 ) (1,766,835 ) Valuation allowance on net deferred tax assets (2,044,100 ) (1,679,756 ) (1,506,307 ) Net deferred tax liability $ (1,922,664 ) $ (1,347,363 ) $ (739,716 ) As of February 28, 2021, the valuation allowance on deferred tax assets was $2.0 million, which represents the federal and state tax effect of net operating losses and unrealized losses that we do not believe we will realize through future taxable income. Any adjustments to the Company’s valuation allowance will depend on estimates of future taxable income and will be made in the period such determination is made. F- 34 Net deferred tax (benefit) expense for the year ended February 28, 2021 includes $0.6 million net change in unrealized appreciation (depreciation) on investments and $0.0 million net change in total operating expense, in the consolidated statement of operations, respectively. Net deferred tax (benefit) expense for the year ended February 29, 2020 includes $(0.4) million net change in unrealized appreciation (depreciation) on investments and $1.0 million net change in total operating expense, in the consolidated statement of operations, respectively. Net deferred tax (benefit) expense for the year ended February 28, 2019 includes $1.8 million change in unrealized appreciation (depreciation) on investments and $(1.1) million net change in total operating expense, in the consolidated statement of operations, respectively. Deferred tax temporary differences may include differences for state taxes and joint venture interests. Federal and state income tax provisions (benefits) on investments are as follows: February 28, 2021 February 29, 2020 February 28, 2019 Current Federal $ - $ - $ - State - - - Net current expense - - - Deferred Federal 461,503 480,415 686,445 State 113,798 127,232 53,271 Net deferred expense 575,301 607,647 739,716 Net tax provision $ 575,301 $ 607,647 $ 739,716 The Company has federal net operating loss carryforwards of $0.1 million which will expire starting in 2038, with the remaining net operating loss carryforwards of $2.5 million having an indefinite life. In addition, the Company has state net operating loss carryforwards of $1.1 million, which begin to expire in fiscal year 2029. Income tax expense was computed by applying the U.S. federal statutory rate of 21% combined with the weighted average state tax rate applicable to each taxable blocker based on the states they operate in. Note 6. Agreements and Related Party Transactions Investment Advisory and Management Agreement On July 30, 2010, the Company entered into the Management Agreement with our Manager. The initial term of the Management Agreement was two years, with automatic, one-year renewals at the end of each year, subject to certain approvals by our board of directors and/or the Company’s stockholders. On July 7, 2020, our board of directors approved the renewal of the Management Agreement for an additional one-year term. Pursuant to the Management Agreement, our Manager implements our business strategy on a day-to-day basis and performs certain services for us, subject to oversight by our board of directors. Our Manager is responsible for, among other duties, determining investment criteria, sourcing, analyzing and executing investments transactions, asset sales, financings and performing asset management duties. Under the Management Agreement, we have agreed to pay our Manager a management fee for investment advisory and management services consisting of a base management fee and an incentive management fee. Base Management Fee and Incentive Management Fee The base management fee of 1.75% per year is calculated based on the average value of our gross assets (other than cash or cash equivalents, but including assets purchased with borrowed funds) at the end of the two most recently completed fiscal quarters. The base management fee is paid quarterly following the filing of the most recent 10-Q. F- 35 The incentive management fee consists of the following two parts: The first, payable quarterly in arrears, equals 20.0% of our pre-incentive fee net investment income, expressed as a rate of return on the value of our net assets at the end of the immediately preceding quarter, that exceeds a 1.875% quarterly hurdle rate measured as of the end of each fiscal quarter, subject to a “catch-up” provision. Under this provision, in any fiscal quarter, our Manager receives no incentive fee unless our pre-incentive fee net investment income exceeds the hurdle rate of 1.875%. Our Manager will receive 100.0% of pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than or equal to 2.344% in any fiscal quarter; and 20.0% of the amount of our pre-incentive fee net investment income, if any, that exceeds 2.344% in any fiscal quarter. There is no accumulation of amounts on the hurdle rate from quarter to quarter, and accordingly there is no claw back of amounts previously paid if subsequent quarters are below the quarterly hurdle rate, and there is no delay of payment if prior quarters are below the quarterly hurdle rate. The second part of the incentive fee is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Management Agreement) and equals 20.0% of our “incentive fee capital gains,” which equals our realized capital gains on a cumulative basis from May 31, 2010 through the end of the fiscal year, if any, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis on each investment in the Company’s portfolio, less the aggregate amount of any previously paid capital gain incentive fee. Importantly, the capital gains portion of the incentive fee is based on realized gains and realized and unrealized losses from May 31, 2010. Therefore, realized and unrealized losses incurred prior to such time will not be taken into account when calculating the capital gains portion of the incentive fee, and our Manager will be entitled to 20.0% of incentive fee capital gains that arise after May 31, 2010. In addition, for the purpose of the “incentive fee capital gains” calculations, the cost basis for computing realized gains and losses on investments held by us as of May 31, 2010 will equal the fair value of such investments as of such date. For the years ended February 28, 2021, February 29, 2020 and February 28, 2019, the Company incurred $9.1 million, $8.1 million and $6.9 million in base management fees, respectively. For the years ended February 28, 2021, February 29, 2020 and February 28, 2019, the Company incurred $5.4 million, $5.8 million and $4.6 million in incentive fees related to pre-incentive fee net investment income. For the years ended February 28, 2021, February 29, 2020 and February 28, 2019, we accrued $0.0 million, $8.4 million and $0.3 million, respectively, in incentive fees related to capital gains. The accrual is calculated using both realized and unrealized capital gains for the period. The actual incentive fee related to capital gains will be determined and payable in arrears at the end of the fiscal year and will include only realized capital gains for the period. As of February 28, 2021, the base management fees accrual was $2.4 million and the incentive fees accrual was $13.8 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities. As of February 29, 2020, the base management fees accrual was $2.1 million and the incentive fees accrual was $13.7 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities. Administration Agreement On July 30, 2010, the Company entered into a separate administration agreement (the “Administration Agreement”) with our Manager, pursuant to which our Manager, as our administrator, has agreed to furnish us with the facilities and administrative services necessary to conduct our day-to-day operations and provide managerial assistance on our behalf to those portfolio companies to which we are required to provide such assistance. The initial term of the Administration Agreement was two years, with automatic, one-year renewals at the end of each year subject to certain approvals by our board of directors and/or our stockholders. The amount of expenses payable or reimbursable thereunder by the Company was capped at $1.0 million for the initial two-year term of the Administration Agreement and subsequent renewals. On July 8, 2015, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company thereunder, which had not been increased since the inception of the agreement, to $1.3 million. On July 7, 2016, our board of directors approved the renewal of the Administration Agreement for an additional one-year term. On October 5, 2016, our board of directors determined to increase the cap on the payment or reimbursement of expenses by the Company under the Administration Agreement, from $1.3 million to $1.5 million, effective November 1, 2016. On July 11, 2017, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $1.5 million to $1.75 million, effective August 1, 2017. On July 9, 2018, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $1.75 million to $2.0 million, effective August 1, 2018. On July 9, 2019, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $2.0 million to $2.225 million effective August 1, 2019. On July 7, 2020, our board of directors approved the renewal of the Administration Agreement for an additional one-year term and determined to increase the cap on the payment or reimbursement of expenses by the Company from $2.225 million to $2.775 million effective August 1, 2020. F- 36 For the years ended February 28, 2021, February 29, 2020 and February 28, 2019, we recognized $2.5 million, $2.1 million and $1.9 million in administrator expenses, respectively, pertaining to bookkeeping, recordkeeping and other administrative services provided to us in addition to our allocable portion of rent and other overhead related expenses. As of February 28, 2021, $0.3 million of administrator expenses were accrued and included in due to manager in the accompanying consolidated statements of assets and liabilities. As of February 29, 2020, $0.5 million of administrator expenses were accrued and included in due to manager in the accompanying consolidated statements of assets and liabilities. Saratoga CLO On August 7, 2018, the Company entered into an unsecured loan agreement with CLO 2013-1 Warehouse, a wholly-owned subsidiary of Saratoga CLO, pursuant to which CLO 2013-1 Warehouse may borrow from time to time up to $20 million from the Company in order to provide capital necessary to support warehouse activities. The CLO 2013-1 Warehouse Loan, which expired on February 7, 2020, bears interest at an annual rate of 3M USD LIBOR + 7.5%. On December 14, 2018, the Company completed the third refinancing and issuance of the 2013-1 Reset CLO Notes. This refinancing, among other things, extended the Saratoga CLO reinvestment period to January 2021, and extended its legal maturity to January 2030. A non-call period ending January 2020 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $300 million in assets to approximately $500 million. As part of this refinancing and upsizing, the Company invested an additional $13.8 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $2.5 million in aggregate principal amount of the Class F-R-2 Notes tranche and $7.5 million in aggregate principal amount of the Class G-R-2 Notes tranche at par. Concurrently, the existing $4.5 million of Class F notes and $20.0 million CLO 2013-1 Warehouse Loan were repaid. The Company also paid $2.0 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. During the year ended February 29, 2020, the Company received full payment of $1.7 million from the Saratoga CLO for such transaction costs. During the year ended February 28, 2019, the maximum amount invested by the Company in the CLO 2013-1 Warehouse Loan amounted to $20.0 million, with interest income of $0.5 million recognized related to the CLO 2013-1 Warehouse Loan and is included in interest from investments on the Company’s consolidated statement of operations for the year ended February 28, 2019. On February 11, 20dedu20, we entered into an unsecured loan agreement (“CLO 2013-1 Warehouse 2 Loan”) with Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd (“CLO 2013-1 Warehouse 2”), a wholly-owned subsidiary of Saratoga Investment Corp. CLO 2013-1, Ltd. pursuant to which CLO 2013-1 Warehouse 2 may borrow from time to time up to $20.0 million from the Company in order to provide capital necessary to support warehouse activities. On October 23, 2020, the CLO 2013-1 Warehouse 2 Loan was increased to $25.0 million availability, which was immediately fully drawn and, which expires on August 20, 2021. The interest rate was also amended to be based on a pricing grid, starting at an annual rate of 3M USD LIBOR + 4.46%. On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. A non-call period ending February 2022 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. As of February 28, 2021, there remained an outstanding receivable of $2.6 million for such transaction costs which is presented as due from affiliate on the Company’s consolidated statement of assets and liabilities. During the year ended February 28, 2021, the maximum amount invested by the Company in the CLO 2013-1 Warehouse 2 Loan amounted to $25.0 million, with interest income of $0.7 million recognized related to the CLO 2013-1 Warehouse 2 Loan and is included in interest from investments on the Company’s consolidated statement of operations for the year ended February 28, 2021. For the years ended February 28, 2021, February 29, 2020 and February 28, 2019, we recognized $2.5 million, $2.5 million and $1.7 million in management fee income, respectively, related to the Saratoga CLO. F- 37 In conjunction with the third refinancing and issuance of the 2013-1 Reset CLO Notes on December 14, 2018, the Company is no longer entitled to receive an incentive management fee from Saratoga CLO. See Note 4 for additional information. For the year ended February 28, 2019, we recognized incentive fee income of $0.6 million related to the Saratoga CLO. Due from Other Affiliate As of February 28, 2021, there is an outstanding receivable from an affiliate of the Company totaling $0.1 million, relating to the reimbursement of deal expenses originally paid by the Company. Note 7. Borrowings Credit Facility As a BDC, we are only allowed to employ leverage to the extent that our asset coverage, as defined in the 1940 Act, equals at least 200.0% after giving effect to such leverage, or, if we obtain the required approvals from our independent directors and/or stockholders, 150.0%. The amount of leverage that we employ at any time depends on our assessment of the market and other factors at the time of any proposed borrowing. Our asset coverage ratio, as defined in the 1940 Act, was 347.1% as of February 28, 2021 and 607.1% as of February 29, 2020. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, our non-interested board of directors approved of our becoming subject to a minimum asset coverage ratio of 150.0% under Sections 18(a)(1) and 18(a)(2) of the Investment Company Act, as amended. The 150.0% asset coverage ratio became effective on April 16, 2019. On April 11, 2007, we entered into a $100.0 million revolving securitized credit facility (the “Revolving Facility”). On May 1, 2007, we entered into a $25.7 million term securitized credit facility (the “Term Facility” and, together with the Revolving Facility, the “Facilities”), which was fully drawn at closing. In December 2007, we consolidated the Facilities by using a draw under the Revolving Facility to repay the Term Facility. In response to the market wide decline in financial asset prices, which negatively affected the value of our portfolio, we terminated the revolving period of the Revolving Facility effective January 14, 2009 and commenced a two-year amortization period during which all principal proceeds from the collateral were used to repay outstanding borrowings. A significant percentage of our total assets had been pledged under the Revolving Facility to secure our obligations thereunder. Under the Revolving Facility, funds were borrowed from or through certain lenders and interest was payable monthly at the greater of the commercial paper rate and our lender’s prime rate plus 4.00% plus a default rate of 2.00% or, if the commercial paper market was unavailable, the greater of the prevailing LIBOR rates and our lender’s prime rate plus 6.00% plus a default rate of 3.00%. On July 30, 2010, we used the net proceeds from (i) the stock purchase transaction and (ii) a portion of the funds available to us under the $45.0 million senior secured revolving credit facility with Madison Capital Funding LLC (the “Credit Facility”), in each case, to pay the full amount of principal and accrued interest, including default interest, outstanding under the Revolving Facility. As a result, the Revolving Facility was terminated in connection therewith. Substantially all of our total assets, other than those held by SBIC LP, have been pledged under the Credit Facility to secure our obligations thereunder. On February 24, 2012, we amended the Credit Facility to, among other things: ● expand the borrowing capacity under the Credit Facility from $40.0 million to $45.0 million; ● extend the period during which we may make and repay borrowings under the Credit Facility from July 30, 2013 to February 24, 2015 (the “Revolving Period”). The Revolving Period may, upon the occurrence of an event of default, by action of the lenders or automatically, be terminated. All borrowings and other amounts payable under the Credit Facility are due and payable five years after the end of the Revolving Period; and ● remove the condition that we may not acquire additional loan assets without the prior written consent of Madison Capital Funding LLC. On September 17, 2014, we entered into a second amendment to the Credit Facility to, among other things: ● extend the commitment termination date from February 24, 2015 to September 17, 2017; ● extend the maturity date of the Credit Facility from February 24, 2020 to September 17, 2022 (unless terminated sooner upon certain events); F- 38 ● reduce the applicable margin rate on base rate borrowings from 4.50% to 3.75%, and on LIBOR borrowings from 5.50% to 4.75%; and ● reduce the floor on base rate borrowings from 3.00% to 2.25%; and on LIBOR borrowings from 2.00% to 1.25%. On May 18, 2017, we entered into a third amendment to the Credit Facility to, among other things: ● extend the commitment termination date from September 17, 2017 to September 17, 2020; ● extend the final maturity date of the Credit Facility from September 17, 2022 to September 17, 2025 (unless terminated sooner upon certain events); ● reduce the floor on base rate borrowings from 2.25% to 2.00%; ● reduce the floor on LIBOR borrowings from 1.25% to 1.00%; and ● reduce the commitment fee rate from 0.75% to 0.50% for any period during which the ratio of advances outstanding to aggregate commitments, expressed as a percentage, is greater than or equal to 50%. On April 24, 2020, we entered into a fourth amendment to the Credit Facility to, among other things: ● permit certain amendments related to the Paycheck Protection Program (“Permitted PPP Amendment”) to Loan Asset Documents; ● exclude certain debt and interest amounts allowed by the Permitted PPP Amendments from certain calculations related to Net Leverage Ratio, Interest Coverage Ratio and EBITDA; and ● exclude such Permitted PPP Amendments from constituting a Material Modification. On September 14, 2020, we entered into a fifth amendment to the Credit Facility to, among other things: ● extend the commitment termination date of the Credit Facility from September 17, 2020 to September 17, 2021, with no change to the maturity date of September 17, 2025. ● provide for the transition away from the LIBOR Rate in the market, and ● expand the definition of “Eligible Loan Asset” to allow investments with certain recurring revenue features to qualify as Collateral and be included in the borrowing base. In addition to any fees or other amounts payable under the terms of the Credit Facility, an administrative agent fee per annum equal to $0.1 million is payable in equal monthly installments in arrears. As of February 28, 2021 and February 29, 2020, there were no outstanding borrowings under the Credit Facility. During the applicable periods, the Company was in compliance with all of the limitations and requirements of the Credit Facility. Financing costs of $3.3 million related to the Credit Facility have been capitalized and are being amortized over the term of the facility. For the years ended February 28, 2021, February 29, 2020 and February 28, 2019, we recorded $0.5 million, $0.6 million and $0.7 million of interest expense, respectively, which includes commitment and administrative agent fees. For the years ended February 28, 2021, February 29, 2020 and February 28, 2019, we recorded $0.1 million, $0.09 million and $0.1 million of amortization of deferred financing costs related to the Credit Facility and Revolving Facility, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. For the fiscal year ended February 28, 2021, the average borrowings outstanding and the weighted average interest rate on outstanding borrowings under the Credit Facility was approximately $1.8 million and 0.17%, respectively. For the fiscal year ended February 29, 2020, the average borrowings outstanding and the weighted average interest rate on outstanding borrowings under the Credit Facility was approximately $0.6 million and 6.66%, respectively. For the fiscal year ended February 28, 2019, the average borrowings outstanding and the weighted average interest rate on outstanding borrowings under the Credit Facility was approximately $3.4 million and 7.10%, respectively. F- 39 The Credit Facility contains limitations as to how borrowed funds may be used, such as restrictions on industry concentrations, asset size, weighted average life, currency denomination and collateral interests. The Credit Facility also includes certain requirements relating to portfolio performance, the violation of which could result in the limit of further advances and, in some cases, result in an event of default, allowing the lenders to accelerate repayment of amounts owed thereunder. The Credit Facility has an eight-year term, consisting of a three-year period (the “Revolving Period”), under which the Company may make and repay borrowings, and a final maturity five years from the end of the Revolving Period. Availability on the Credit Facility will be subject to a borrowing base calculation, based on, among other things, applicable advance rates (which vary from 50.0% to 75.0% of par or fair value depending on the type of loan asset) and the value of certain “eligible” loan assets included as part of the Borrowing Base. Funds may be borrowed at the greater of the prevailing one-month LIBOR rate and 1.00%, plus an applicable margin of 4.75%. At the Company’s option, funds may be borrowed based on an alternative base rate, which in no event will be less than 2.00%, and the applicable margin over such alternative base rate is 3.75%. In addition, the Company will pay the lenders a commitment fee of 0.75% per year (or 0.50% if the ratio of advances outstanding to aggregate commitments is greater than or equal to 50%) on the unused amount of the Credit Facility for the duration of the Revolving Period. Our borrowing base under the Credit Facility was $38.9 million, subject to the Credit Facility cap of $45.0 million at February 28, 2021. For purposes of determining the borrowing base, most assets are assigned the values set forth in our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission (“SEC”). Accordingly, the February 28, 2021 borrowing base relies upon the valuations set forth in the Quarterly Report on Form 10-Q for the period ended November 30, 2020, as filed with the SEC on January 6, 2021. The valuations presented in this Annual Report on Form 10-K will not be incorporated into the borrowing base until after this Annual Report on Form 10-K is filed with the SEC. SBA Debentures Our wholly-owned SBIC subsidiaries are able to borrow funds from the SBA against regulatory capital (which approximates equity capital) that is paid in and is subject to customary regulatory requirements including but not limited to an examination by the SBA. On August 14, 2019, the Company’s wholly-owned subsidiary, SBIC II LP, received an SBIC license from the SBA. The new license provides up to $175.0 million in additional long-term capital in the form of SBA debentures. As a result of the 2016 omnibus spending bill signed into law in December 2015, the maximum amount of SBA-guaranteed debentures that affiliated SBIC funds can have outstanding was increased from $225.0 million to $350.0 million. With this license approval, Saratoga will grow its SBA relationship from $150.0 million to $325.0 million of committed capital. As of February 28, 2021, we have funded SBIC LP and SBIC II LP with an aggregate total of equity capital of $75.0 million and $69.0 million, respectively, and have $158.0 million in SBA-guaranteed debentures outstanding, of which $124.0 million is held in SBIC LP and $34.0 million held in SBIC II LP. SBA debentures are non-recourse to us, have a 10-year maturity, and may be prepaid at any time without penalty. The interest rate of SBA debentures is fixed at the time of issuance, often referred to as pooling, at a market-driven spread over 10-year U.S. Treasury Notes. SBA current regulations limit the amount that SBIC LP and SBIC II LP may borrow to a maximum of $150.0 million and $175.0 million, respectively, which is up to twice its potential regulatory capital. SBICs are designed to stimulate the flow of private equity capital to eligible small businesses. Under SBA regulations, SBICs may make loans to eligible small businesses and invest in the equity securities of small businesses. Under present SBA regulations, eligible small businesses include businesses that have a tangible net worth not exceeding $19.5 million and have average annual fully taxed net income not exceeding $6.5 million for the two most recent fiscal years. In addition, an SBIC must devote 25.0% of its investment activity to “smaller” concerns as defined by the SBA. A smaller concern is one that has a tangible net worth not exceeding $6.0 million and has average annual fully taxed net income not exceeding $2.0 million for the two most recent fiscal years. SBA regulations also provide alternative size standard criteria to determine eligibility, which depend on the industry in which the business is engaged and are based on such factors as the number of employees and gross sales. According to SBA regulations, SBICs may make long-term loans to small businesses, invest in the equity securities of such businesses and provide them with consulting and advisory services. SBIC LP and SBIC II LP are subject to regulation and oversight by the SBA, including requirements with respect to maintaining certain minimum financial ratios and other covenants. Receipt of an SBIC license does not assure that SBIC II LP will receive SBA-guaranteed debenture funding, which is dependent upon SBIC II LP continuing to be in compliance with SBA regulations and policies. The SBA, as a creditor, will have a superior claim to SBIC LP and SBIC II LP assets over our stockholders and debtholders in the event we liquidate SBIC LP and SBIC II LP or the SBA exercises its remedies under the SBA-guaranteed debentures issued by SBIC LP and SBIC II LP upon an event of default. F- 40 The Company received exemptive relief from the SEC to permit it to exclude the debt of SBIC subsidiaries guaranteed by the SBA from the definition of senior securities in the asset coverage test under the 1940 Act. This allows the Company increased flexibility under the asset coverage test by permitting it to borrow up to $325.0 million more than it would otherwise be able to absent the receipt of this exemptive relief. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, the non-interested board of directors of the Company approved of the Company becoming subject to a minimum asset coverage ratio of 150.0% from 200% under Sections 18(a)(1) and 18(a)(2) of the Investment Company Act, as amended. The 150.0% asset coverage ratio became effective on April 16, 2019. At February 28, 2021 and February 29, 2020, there was $158.0 million and $150.0 million outstanding of SBA debentures, respectively. The carrying amount of the amount outstanding of SBA debentures approximates its fair value, which is based on a waterfall analysis showing adequate collateral coverage and would be classified as a Level 3 liability within the fair value hierarchy. Financing costs of $5.0 million and $1.5 million related to the SBA debentures issued by SBIC LP and SBIC II LP, respectively, have been capitalized and are being amortized over the term of the commitment and drawdown. During the year ended February 28, 2021, the Company repaid $26.0 million of SBA debentures, resulting in a realized loss on extinguishment of $0.1 million related to the acceleration of deferred debt financing costs. For the years ended February 28, 2021, February 29, 2020 and February 28, 2019, we recorded $5.5 million, $4.8 million and $4.7 million of interest expense related to the SBA debentures, respectively. For the years ended February 28, 2021, February 29, 2020 and February 28, 2019, we recorded $0.6 million, $0.5 million and $0.5 million of amortization of deferred financing costs related to the SBA debentures, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. The weighted average interest rate during the years ended February 28, 2021, February 29, 2020 and February 28, 2019 on the outstanding borrowings of the SBA debentures was 3.25%, 3.23% and 3.20%, respectively. During the years ended February 28, 2021 and February 29, 2020, the average dollar amount of SBA debentures outstanding was $169.3 million and $150.0 million, respectively. In December 2015, the 2016 omnibus spending bill approved by Congress and signed into law by the President increased the amount of SBA-guaranteed debentures that affiliated SBIC funds can have outstanding from $225.0 million to $350.0 million, subject to SBA approval. SBA regulations previously limited the amount of SBA-guaranteed debentures that an SBIC may issue to $150.0 million when it has at least $75.0 million in regulatory capital but this has increased to $175.0 million for new licenses when it has at least $87.5 million in regulatory capital. Affiliated SBICs are permitted to issue up to a combined maximum amount of $350.0 million in SBA-guaranteed debentures when they have at least $175.0 million in combined regulatory capital. Notes On May 10, 2013, the Company issued $42.0 million in aggregate principal amount of 7.50% fixed-rate notes due 2020 (the “2020 Notes”). The 2020 Notes will mature on May 31, 2020, and since May 31, 2016, may be redeemed in whole or in part at any time or from time to time at the Company’s option. Interest will be payable quarterly beginning August 15, 2013. On May 17, 2013, the Company closed an additional $6.3 million in aggregate principal amount of the 2020 Notes, pursuant to the full exercise of the underwriters’ option to purchase additional 2020 Notes. The 2020 Notes were redeemed in full on January 13, 2017. On May 29, 2015, the Company entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which the Company may offer for sale, from time to time, up to $20.0 million in aggregate principal amount of the 2020 Notes through an At-the-Market (“ATM”) offering. Prior to the 2020 Notes being redeemed in full, the Company had sold 539,725 bonds with a principal of $13.5 million at an average price of $25.31 for aggregate net proceeds of $13.4 million (net of transaction costs). On December 21, 2016, the Company issued $74.5 million in aggregate principal amount of our 6.75% fixed-rate notes due 2023 (the “2023 Notes”) for net proceeds of $71.7 million after deducting underwriting commissions of approximately $2.3 million and offering costs of approximately $0.5 million. The issuance included the exercise of substantially all of the underwriters’ option to purchase an additional $9.8 million aggregate principal amount of 2023 Notes within 30 days. Interest on the 2023 Notes is paid quarterly in arrears on March 15, June 15, September 15 and December 15, at a rate of 6.75% per year, beginning March 30, 2017. The 2023 Notes mature on December 30, 2023, and commencing December 21, 2019, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used to repay all of the outstanding indebtedness under the 2020 Notes, which amounted to $61.8 million, and for general corporate purposes in accordance with our investment objective and strategies. The remaining unamortized deferred debt financing costs of $1.5 million (including underwriting commissions and net of issuance premiums), was recorded within loss on debt extinguishment in the consolidated statements of operations in the fourth quarter of the fiscal year ended February 28, 2017, when the related 2020 Notes were extinguished. F- 41 On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.5 million, respectively, in aggregate principal amount of the $74.5 million in aggregate principal amount of issued and outstanding 2023 Notes. The 2023 Notes were listed on the NYSE under the trading symbol “SAB” with a par value of $25.00 per share, and have been delisted following the redemption. For the year ended February 28, 2019, we recorded $5.0 million of interest expense and $0.4 million of amortization of deferred financing cost related to the 2023 Notes. Interest expense and amortization of deferred financing cost are reported as interest and debt financing expense on the consolidated statements of operations. During the years ended February 28, 2019 the average dollar amount of 2023 Notes outstanding was $74.5 million. On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of our 6.25% fixed-rate notes due 2025 (the “6.25% 2025 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.3 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $5.0 million aggregate principal amount of 6.25% 2025 Notes within 30 days. Interest on the 6.25% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning November 30, 2018. The 6.25% 2025 Notes mature on August 31, 2025 and commencing August 31, 2021, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes. On February 5, 2019, the Company completed a re-opening and up-sizing of its existing 6.25% 2025 Notes by issuing an additional $20.0 million in aggregate principal amount for net proceeds of $19.2 million after deducting underwriting commissions of approximately $0.6 million and discount of $0.2 million. Offering costs incurred were approximately $0.2 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $2.5 million aggregate principal amount of 6.25% 2025 Notes within 30 days. Interest rate, interest payment dates and maturity remain unchanged from the existing 6.25% 2025 Notes issued in August 2018. The net proceeds from this offering were used for general corporate purposes in accordance with our investment objective and strategies. The financing costs and discount of $1.0 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes. As of February 28, 2021, the total 6.25% 2025 Notes outstanding was $60.0 million. The 6.25% 2025 Notes are listed on the NYSE under the trading symbol “SAF” with a par value of $25.00 per share. As of February 28, 2021, the carrying amount and fair value of the 6.25% 2025 Notes was $60.0 million and $61.2 million, respectively. The fair value of the 6.25% 2025 Notes, which are publicly traded, is based upon closing market quotes as of the measurement date and would be classified as a Level 1 liability within the fair value hierarchy. As discussed above, during the fourth quarter of 2020 fiscal year, the Company redeemed $74.45 million in aggregate principal amount of issued outstanding 2023 Notes. On June 24, 2020, the Company issued $37.5 million in aggregate principal amount of our 7.25% fixed-rate notes due 2025 (the “7.25% 2025 Notes”) for net proceeds of $36.3 million after deducting underwriting commissions of approximately $1.2 million. Offering costs incurred were approximately $0.3 million. On July 6, 2020, the underwriters exercised their option in full to purchase an additional $5.625 million in aggregate principal amount of its 7.25% 2025 Notes. Net proceeds to the Company were $5.4 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 7.25% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.25% per year, beginning August 31, 2020. The 7.25% 2025 Notes mature on June 30, 2025 and commencing June 24, 2022, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 7.25% 2025 Notes have been capitalized and are being amortized over the term of the 7.25% 2025 Notes. As of February 28, 2021, the total 7.25% Notes 2025 outstanding was $43.1 million. The 7.25% 2025 Notes are listed on the NYSE under the trading symbol “SAK” with a par value of $25.00 per share. As of February 28, 2021, the carrying amount and fair value of the 7.25% 2025 Notes was $43.1 million and $45.7 million, respectively. The fair value of the 7.25% 2025 Notes, which are publicly traded, is based upon closing market quotes as of the measurement date and would be classified as a Level 1 liability within the fair value hierarchy. F- 42 For the years ended February 28, 2021 and February 29, 2020, we recorded $2.2 million and $0.0 million, respectively, of interest expense and $0.2 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 7.25% 2025 Notes. Interest expense and amortization of deferred financing cost are reported as interest and debt financing expense on the consolidated statements of operations. For the year ended February 28, 2021 and February 29, 2020, the average dollar amount of 7.25% 2025 Notes outstanding was $43.1 million and $0.0 million, respectively. On July 9, 2020, the Company issued $5.0 million aggregate principal amount of our 7.75% fixed-rate notes due in 2025 (the “7.75% Notes 2025”) for net proceeds of $4.8 million after deducting underwriting commissions of approximately $0.2 million. Offering costs incurred were approximately $0.1 million. Interest on the 7.75% Notes 2025 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.75% per year, beginning August 31, 2020. The 7.75% Notes 2025 mature on July 9, 2025 and may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 7.75% Notes 2025 have been capitalized and are being amortized over the term of the Notes. As of February 28, 2021, the total 7.75% Notes 2025 outstanding was $5.0 million. The 7.75% Notes 2025 are not listed and have a par value of $25.00 per share. The carrying amount of the amount outstanding of 7.75% 2025 Notes approximates its fair value, which is based on a waterfall analysis showing adequate collateral coverage and would be classified as a Level 3 liability within the fair value hierarchy. For the years ended February 28, 2021 and February 29, 2020, we recorded $0.3 million and $0.0 million, respectively, of interest expense and $0.04 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 7.75% 2025 Notes. Interest expense and amortization of deferred financing cost are reported as interest and debt financing expense on the consolidated statements of operations. For the year ended February 28, 2021 and February 29, 2020, the average dollar amount of 7.75% 2025 Notes outstanding was $5.0 million and $0.0 million, respectively. On December 29, 2020, the Company issued $5.0 million aggregate principal amount of our 6.25% fixed-rate notes due in 2027 (the “6.25% Notes 2027”). Offering costs incurred were approximately $0.1 million. Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021. The 6.25% Notes 2027 mature on December 29, 2027 and may be redeemed in whole or in part at any time or from time to time at our option, on or after December 29, 2024. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.1 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes. On January 28, 2021, the Company issued $10.0 million aggregate principal amount of our 6.25% fixed rate Notes due in 2027 (the “6.25% Notes 2027”) for net proceeds of $9.7 million after deducting underwriting commissions of approximately $0.3 million. Offering costs incurred were approximately $0.0 million. Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year, beginning February 28, 2021. The 6.25% Notes 2027 mature on January 28, 2027 and commencing January 28, 2023, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes. As of February 28, 2021, the total 6.25% Notes 2027 outstanding was $15.0 million. The 6.25% 2027 Notes are not listed and have a par value of $25.00 per share. The carrying amount of the amount outstanding of 6.25% 2027 Notes approximates its fair value, which is based on a waterfall analysis showing adequate collateral coverage and would be classified as a Level 3 liability within the fair value hierarchy. For the years ended February 28, 2021 and February 29, 2020, we recorded $0.1 million and $0.0 million, respectively, of interest expense and $0.01 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 6.25% 2027 Notes. Interest expense and amortization of deferred financing cost are reported as interest and debt financing expense on the consolidated statements of operations. For the year ended February 28, 2021 and February 29, 2020, the average dollar amount of 6.25% 2027 Notes outstanding was $7.0 million and $0.0 million, respectively. Senior Securities Information about our senior securities is shown in the following table as of February 28/29 for the fiscal years indicated in the table, unless otherwise noted. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Financial condition, liquidity and capital resources” for more detailed information regarding the senior securities. F- 43 SENIOR SECURITIES (dollar amounts in thousands, except per share data) Class and Year (1)(2) Total Amount Outstanding Exclusive of Treasury Securities (3) Asset Coverage per Unit (4) Involuntary Liquidating Preference per Share (5) Average Market Value per Share (6) (in thousands) Credit Facility with Madison Capital Funding Fiscal year 2021 (as of February 28, 2021) $ - $ 3,471 - N/A Fiscal year 2020 (as of February 29, 2020) $ - $ 6,071 - N/A Fiscal year 2019 (as of February 28, 2019) $ - $ 2,345 - N/A Fiscal year 2018 (as of February 28, 2018) $ - $ 2,930 - N/A Fiscal year 2017 (as of February 28, 2017) $ - $ 2,710 - N/A Fiscal year 2016 (as of February 29, 2016) $ - $ 3,025 - N/A Fiscal year 2015 (as of February 28, 2015) $ 9,600 $ 3,117 - N/A Fiscal year 2014 (as of February 28, 2014) $ - $ 3,348 - N/A Fiscal year 2013 (as of February 28, 2013) $ 24,300 $ 5,421 - N/A Fiscal year 2012 (as of February 29, 2012) $ 20,000 $ 5,834 - N/A Fiscal year 2011 (as of February 28, 2011) $ 4,500 $ 20,077 - N/A Fiscal year 2010 (as of February 28, 2010) $ - $ - - N/A Fiscal year 2009 (as of February 28, 2009) $ - $ - - N/A Fiscal year 2008 (as of February 29, 2008) $ - $ - - N/A Fiscal year 2007 (as of February 28, 2007) $ - $ - - N/A 7.50% Notes due 2020 (7) Fiscal year 2017 (as of February 28, 2017) $ - $ - - N/A Fiscal year 2016 (as of February 29, 2016) $ 61,793 $ 3,025 - $ 25.24 (8) Fiscal year 2015 (as of February 28, 2015) $ 48,300 $ 3,117 - $ 25.46 (8) Fiscal year 2014 (as of February 28, 2014) $ 48,300 $ 3,348 - $ 25.18 (8) Fiscal year 2013 (as of February 28, 2013) $ - $ - - N/A Fiscal year 2012 (as of February 29, 2012) $ - $ - - N/A Fiscal year 2011 (as of February 28, 2011) $ - $ - - N/A Fiscal year 2010 (as of February 28, 2010) $ - $ - - N/A Fiscal year 2009 (as of February 28, 2009) $ - $ - - N/A Fiscal year 2008 (as of February 29, 2008) $ - $ - - N/A Fiscal year 2007 (as of February 28, 2007) $ - $ - - N/A 6.75% Notes due 2023 (9) Fiscal year 2020 (as of February 29, 2020) $ - $ - - N/A Fiscal year 2019 (as of February 28, 2019) $ 74,451 $ 2,345 - $ 25.74 (10) Fiscal year 2018 (as of February 28, 2018) $ 74,451 $ 2,930 - $ 26.05 (10) Fiscal year 2017 (as of February 28, 2017) $ 74,451 $ 2,710 - $ 25.89 (10) 6.25% Notes due 2025 Fiscal year 2021 (as of February 28, 2021) $ 60,000 $ 3,471 - $ 24.24 (11) Fiscal year 2020 (as of February 29, 2020) $ 60,000 $ 6,071 - $ 25.75 (11) Fiscal year 2019 (as of February 28, 2019) $ 60,000 $ 2,345 - $ 24.97 (11) 7.25% Notes due 2025 Fiscal year 2021 (as of February 28, 2021) $ 43,125 $ 3,471 - $ 25.77 (11) 7.75% Notes due 2025 Fiscal year 2021 (as of February 28, 2021) $ 5,000 $ 3,471 - $ 25.00 (12) 6.25% Notes due 2027 Fiscal year 2021 (as of February 28, 2021) $ 15,000 $ 3,471 - $ 25.00 (12) (1) We have excluded our SBA-guaranteed debentures from this table because the SEC has granted us exemptive relief that permits us to exclude such debentures from the definition of senior securities in the 150% asset coverage ratio we are required to maintain under the 1940 Act. F- 44 (2) This table does not include the senior securities of our predecessor entity, GSC Investment Corp., relating to a revolving securitized credit facility with Deutsche Bank, in light of the fact that the Company was under different management during the time that such credit facility was outstanding. (3) Total amount of senior securities outstanding at the end of the period presented. (4) Asset coverage per unit is the ratio of our total assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness, calculated on a total basis. (5) The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. The “—” indicates information which the Securities and Exchange Commission expressly does not require to be disclosed for certain types of senior securities. (6) Not applicable for credit facility because not registered for public trading. (7) On January 13, 2017, the Company redeemed in full its 2020 Notes. The Company used a portion of the net proceeds from the 2023 Notes offering, which was completed in December 2016, to redeem the 2020 Notes in full. (8) Based on the average daily trading price of the 2020 Notes on the NYSE. (9) On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.45 million, respectively, in aggregate principal amount of the $74.45 million in aggregate principal amount of issued and outstanding 2023 Notes. (10) Based on the average daily trading price of the 2023 Notes on the NYSE. (11) Based on the average daily trading price of the 2025 Notes on the NYSE. (12) The carrying value of this unlisted security approximates its fair value, based on a waterfall analysis showing adequate collateral coverage. F- 45 Note 8. Commitments and Contingencies Contractual Obligations The following table shows our payment obligations for repayment of debt and other contractual obligations at February 28, 2021: Payment Due by Period Long-Term Debt Obligations Total Less Than 1 Year 1 - 3 Years 3 - 5 Years More Than 5 Years ($ in thousands) Revolving credit facility $ - $ - $ - $ - $ - SBA debentures 158,000 - 14,000 39,000 105,000 6.25% 2025 Notes 60,000 - - 60,000 - 7.25% 2025 Notes 43,125 - - 43,125 - 7.75% 2025 Notes 5,000 - - 5,000 - 6.25% 2027 Notes 15,000 - - - 15,000 Total Long-Term Debt Obligations $ 281,125 $ - $ 14,000 $ 147,125 $ 120,000 Off-balance Sheet Arrangements At February 28, 2021 and February 29, 2020, the Company’s off-balance sheet arrangements consisted of $58.8 million and $64.1 million, respectively, of unfunded commitments outstanding to provide debt financing to its portfolio companies or to fund limited partnership interests. Such commitments are generally up to the Company’s discretion to approve, or the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’s consolidated statements of assets and liabilities and are not reflected in the Company’s consolidated statements of assets and liabilities. A summary of the unfunded commitments outstanding as of February 28, 2021 and February 29, 2020 is shown in the table below (dollars in thousands): February 28, 2021 February 29, 2020 At Company’s discretion Book4Time, Inc. $ 2,000 $ - CLEO Communications Holding, LLC 630 - GreyHeller LLC 15,000 - inMotionNow, Inc. - 3,000 Netreo Holdings, LLC 10,000 - Omatic Software, LLC - 1,000 Passageways, Inc. 5,000 5,000 PDDS Buyer, LLC - 5,000 Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd. - 17,500 Top Gun Pressure Washing, LLC 3,175 5,000 Village Realty Holdings LLC 10,000 10,000 Total 45,805 46,500 At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required ArbiterSports, LLC - 1,000 Axiom Purchaser, Inc. - 1,000 CoConstruct, LLC - 3,500 Davisware, LLC - 2,000 GoReact 2,000 2,000 Granite Comfort, LP - - HemaTerra Holding Company, LLC 2,000 4,000 New England Dental Partners 6,000 - Passageways, Inc. 2,000 3,000 Procurement Partners, LLC 1,000 - Village Realty Holdings LLC - 1,124 13,000 17,624 Total $ 58,805 $ 64,124 F- 46 Note 9. Directors Fees The independent directors each receive an annual fee of $70,000. They also receive $3,000 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each board meeting and receive $1,500 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each committee meeting. In addition, the chairman of the Audit Committee receives an annual fee of $12,500 and the chairman of each other committee receives an annual fee of $6,000 for their additional services in these capacities. In addition, we have purchased directors’ and officers’ liability insurance on behalf of our directors and officers. Independent directors have the option to receive their directors’ fees in the form of our common stock issued at a price per share equal to the greater of net asset value or the market price at the time of payment. No compensation is paid to directors who are “interested persons” of the Company (as such term is defined in the 1940 Act). For the years ended February 28, 2021, February 29, 2020 and February 28, 2019, we incurred $0.3 million, $0.3 million and $0.3 million for directors’ fees and expenses, respectively. As of February 28, 2021 and February 29, 2020, $0.07 million and $0.06 million in directors’ fees and expenses were accrued and unpaid, respectively. As of February 28, 2021, we had not issued any common stock to our directors as compensation for their services. F- 47 Note 10. Stockholders’ Equity On May 16, 2006, GSC Group, Inc. capitalized the LLC, by contributing $1,000 in exchange for 67 shares, constituting all of the issued and outstanding shares of the LLC. On March 20, 2007, the Company issued 95,995.5 and 8,136.2 shares of common stock, priced at $150.00 per share, to GSC Group and certain individual employees of GSC Group, respectively, in exchange for the general partnership interest and a limited partnership interest in GSC Partners CDO III GP, LP, collectively valued at $15.6 million. At this time, the 6.7 shares owned by GSC Group in the LLC were exchanged for 6.7 shares of the Company. On March 28, 2007, the Company completed its IPO of 725,000 shares of common stock, priced at $150.00 per share, before underwriting discounts and commissions. Total proceeds received from the IPO, net of $7.1 million in underwriter’s discount and commissions, and $1.0 million in offering costs, were $100.7 million. On July 30, 2010, our Manager and its affiliates purchased 986,842 shares of common stock at $15.20 per share. Total proceeds received from this sale were $15.0 million. On August 12, 2010, we effected a one-for-ten reverse stock split of our outstanding common stock. As a result of the reverse stock split, every ten shares of our common stock were converted into one share of our common stock. Any fractional shares received as a result of the reverse stock split were redeemed for cash. The total cash payment in lieu of shares was $230. Immediately after the reverse stock split, we had 2,680,842 shares of our common stock outstanding. On September 24, 2014, the Company announced the approval of an open market share repurchase plan that allowed it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published consolidated financial statements (the “Share Repurchase Plan”). On October 7, 2015, our board of directors extended the Share Repurchase Plan for another year and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 400,000 shares of its common stock. On October 5, 2016, our board of directors extended the Share Repurchase Plan for another year to October 15, 2017 and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 600,000 shares of its common stock. On October 10, 2017, January 8, 2019 and January 7, 2020, our board of directors extended the Share Repurchase Plan for another year to October 15, 2018, January 15, 2020 and January 15, 2021, respectively, each time leaving the number of shares unchanged at 600,000 shares of its common stock. On May 4, 2020, our board of directors increased the Share Repurchase Plan to 1.3 million shares of common stock. On January 5, 2021, our board of directors extended the Shares Repurchase Plan for another year to January 15, 2022, leaving the number of shares unchanged at 1.3 million shares of common stock. As of February 28, 2021, the Company purchased 408,812 shares of common stock, at the average price of $17.84 for approximately $7.3 million pursuant to the Share Repurchase Plan. During the year ended February 28, 2021 the Company purchased 190,321 shares of common stock, at the average price $18.96 for approximately $3.6 million pursuant to the Share Repurchase Plan. On March 16, 2017, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc., through which we may offer for sale, from time to time, up to $30.0 million of our common stock through an ATM offering. Subsequent to this, BB&T Capital Markets and B. Riley FBR, Inc. were also added to the agreement. On July 9, 2019, the amount of the common stock to be offered through this offering was increased to $70.0 million, and on October 8, 2019, the amount of the common stock to be offered was increased to $130.0 million. As of February 28, 2021, the Company sold 3,922,018 shares for gross proceeds of $97.1 million at an average price of $24.77 for aggregate net proceeds of $95.9 million (net of transaction costs). For the year ended February 28, 2021, there was no activity related to the ATM offerings. On July 13, 2018, the Company issued 1,150,000 shares of its common stock priced at $25.00 per share (par value $0.001 per share) at an aggregate total of $28.75 million. The net proceeds, after deducting underwriting commissions of $1.15 million and offering costs of approximately $0.2 million, amounted to approximately $27.4 million. The Company also granted the underwriters a 30-day option to purchase up to an additional 172,500 shares of its common stock, which was not exercised. F- 48 The Company adopted Rule 3-04/Rule 8-03(a)(5) under Regulation S-X (Note 2). Pursuant to the regulation, the Company has presented a reconciliation of the changes in each significant caption of stockholders’ equity as shown in the tables below: Capital in Excess Total Distributable Common Stock of Par Earnings Shares Amount Value (Loss) Net Assets Balance at February 29, 2020 11,217,545 $ 11,218 $ 289,476,991 $ 14,798,644 $ 304,286,853 Increase (Decrease) from Operations: Net investment income - - - 9,018,314 9,018,314 Net realized gain (loss) from investments - - - 8,480 8,480 Net change in unrealized appreciation (depreciation) on investments - - - (31,950,369 ) (31,950,369 ) Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - 267,740 267,740 Decrease from Shareholder Distributions: Distributions of investment income – net - - - - - Capital Share Transactions: Proceeds from issuance of common stock - - - - - Stock dividend distribution - - - - - Repurchases of common stock - - - - - Offering costs - - - - - Balance at May 31, 2020 11,217,545 $ 11,218 $ 289,476,991 $ (7,857,191 ) $ 281,631,018 Increase (Decrease) from Operations: Net investment income - - - 5,334,713 5,334,713 Net realized gain (loss) from investments - - - 11,929 11,929 Net change in unrealized appreciation (depreciation) on investments - - - 16,580,401 16,580,401 Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - (116,521 ) (116,521 ) Decrease from Shareholder Distributions: Distributions of investment income – net - - - (4,487,015 ) (4,487,015 ) Capital Share Transactions: Proceeds from issuance of common stock - - - - - Stock dividend distribution 47,098 46 774,944 - 774,990 Repurchases of common stock (90,321 ) (90 ) (1,550,327 ) - (1,550,417 ) Repurchase fees - - (1,740 ) - (1,740 ) Offering costs - - - - - Balance at August 31, 2020 11,174,322 $ 11,174 $ 288,699,868 $ 9,466,316 $ 298,177,358 Increase (Decrease) from Operations: Net investment income - - - 4,471,102 4,471,102 Net realized gain (loss) from investments - - - 1,798 1,798 Income tax (provision) benefit from realized gain on investments (3,895,354 ) (3,895,354 ) Net change in unrealized appreciation (depreciation) on investments - - - 5,998,830 5,998,830 Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - (210,057 ) (210,057 ) Decrease from Shareholder Distributions: Distributions of investment income – net - - - (4,581,469 ) (4,581,469 ) Capital Share Transactions: Proceeds from issuance of common stock - - - - - Stock dividend distribution 45,706 46 805,883 - 805,929 Repurchases of common stock (50,000 ) (50 ) (914,194 ) - (914,244 ) Repurchase fees - - (1,003 ) - (1,003 ) Offering costs - - - - - Balance at November 30, 2020 11,170,028 $ 11,170 $ 288,590,554 $ 11,251,166 $ 299,852,890 Increase (Decrease) from Operations: Net investment income - - - 4,288,996 4,288,996 Net realized gain (loss) from investments - - - (8,726,013 ) (8,726,013 ) Income tax (provision) benefit from realized gain on investments - - - - - Realized losses on extinguishment of debt (128,617 ) (128,617 ) Net change in unrealized appreciation (depreciation) on investments - - - 14,337,460 14,337,460 Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - (515,796 ) (515,796 ) Decrease from Shareholder Distributions: Distributions of investment income – net - - - (4,678,514 ) (4,678,514 ) Capital Share Transactions: Proceeds from issuance of common stock - - - - - Stock dividend distribution 41,388 41 900,124 - 900,165 Repurchases of common stock (50,000 ) (50 ) (1,143,748 ) - (1,143,798 ) Repurchase fees - - (1,003 ) - (1,003 ) Offering costs - - - - - Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles - - 16,529,030 (16,529,030 ) - Balance at February 28, 2021 11,161,416 $ 11,161 $ 304,874,957 $ (700,348 ) $ 304,185,770 F- 49 Note 11. Earnings Per Share In accordance with the provisions of FASB ASC Topic 260, “ Earnings per Share ” (“ASC 260”), basic earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. The following information sets forth the computation of the weighted average basic and diluted net increase in net assets resulting from operations per share for the years ended February 28, 2021, February 29, 2020 and February 28, 2019 (dollars in thousands except share and per share amounts): Basic and Diluted February 28, 2021 February 29, 2020 February 28, 2019 Net increase in net assets resulting from operations $ 14,777 $ 55,739 $ 18,509 Weighted average common shares outstanding 11,188,629 9,319,192 7,046,686 Weighted average earnings per common share $ 1.32 $ 5.98 $ 2.63 Note 12. Dividend On January 5, 2021, our board of directors declared a dividend of $0.42 per share, which was paid on February 10, 2021, to common stockholders of record as of January 26, 2021. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.8 million in cash and 41,388 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.75 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on January 28, 29 and February 1, 2, 3, 4, 5, 8, 9 and 10, 2021. On October 7, 2020, our board of directors declared a dividend of $0.41 per share, which was paid on November 10, 2020, to common stockholders of record as of October 26, 2020. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.8 million in cash and 45,706 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.63 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on October 28, 29, 30 and November 2, 3, 4, 5, 6, 9, and 10, 2020. On July 7, 2020, our board of directors declared a dividend of $0.40 per share, which was paid on August 12, 2020, to common stockholders of record as of July 27, 2020. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.7 million in cash and 47,098 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.45 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on July 30, 31 and August 3, 4, 5, 6, 7, 10, 11 and 12, 2020. During the three months ended May 31, 2020, there were no dividends declared. On January 7, 2020, the Company declared a dividend of $0.56 per share, which was paid on February 6, 2020, to common stockholders of record on January 24, 2020. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $5.4 million in cash and 35,682 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $25.44 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on January 24, 27, 28, 29, 30, 31 and February 3, 4, 5 and 6, 2020. On August 27, 2019, the Company declared a dividend of $0.56 per share, which was paid on September 26, 2019, to common stockholders of record on September 13, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $4.5 million in cash and 34,575 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.34 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on September 13, 16, 17, 18, 19, 20, 23, 24, 25 and 26, 2019. F- 50 On May 28, 2019, the Company declared a dividend of $0.55 per share, which was paid on June 27, 2019, to common stockholders of record on June 13, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $3.6 million in cash and 31,545 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $22.65 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on June 14, 17, 18, 19, 20, 21, 24, 25, 26 and 27, 2019. On February 26, 2019, our board of directors declared a dividend of $0.54 per share, which was paid on March 28, 2019, to common stockholders of record as of March 14, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $3.5 million in cash and 31,240 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.36 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on March 15, 18, 19, 20, 21, 22, 25, 26, 27 and 28, 2019. On November 27, 2018, the Company declared a dividend of $0.53 per share, which was paid on January 2, 2019, to common stockholders of record on December 17, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $3.4 million in cash and 30,797 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $18.88 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on December 18, 19, 20, 21, 24, 26, 27, 28, 31, 2018 and January 2, 2019. On August 28, 2018, the Company declared a dividend of $0.52 per share, which was paid on September 27, 2018, to common stockholders of record as of September 17, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $3.3 million in cash and 25,863 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $22.35 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on September 14, 17, 18, 19, 20, 21, 24, 25, 26 and 27, 2018. On May 30, 2018, the Company declared a dividend of $0.51 per share, which was paid on June 27, 2018, to common stockholders of record as of June 15, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $2.7 million in cash and 21,563 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.72 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on June 14, 15, 18, 19, 20, 21, 22, 25, 26 and 27, 2018. On February 26, 2018, the Company declared a dividend of $0.50 per share, which was paid on March 26, 2018, to common stockholders of record as of March 14, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $2.6 million in cash and 25,355 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $19.91 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on March 13, 14, 15, 16, 19, 20, 21, 22, 23 and 26, 2018. On November 29, 2017, the Company declared a dividend of $0.49 per share, which was paid on December 27, 2017, to common stockholders of record on December 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $2.5 million in cash and 25,435 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.14 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on December 13, 14, 15, 18, 19, 20, 21, 22, 26 and 27, 2017. F- 51 On August 28, 2017, the Company declared a dividend of $0.48 per share, which was paid on September 26, 2017, to common stockholders of record as of September 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $2.2 million in cash and 33,551 newly issued shares of common stock, or 0.6% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.19 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on September 13, 14, 15, 18, 19, 20, 21, 22, 25 and 26, 2017. On May 30, 2017, the Company declared a dividend of $0.47 per share, which was paid on June 27, 2017, to common stockholders of record as of June 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $2.3 million in cash and 26,222 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.04 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on June 14, 15, 16, 19, 20, 21, 22, 23, 26 and 27, 2017. On February 28, 2017, the Company declared a dividend of $0.46 per share, which was paid on March 28, 2017, to common stockholders of record as of March 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $2.0 million in cash and 29,096 newly issued shares of common stock, or 0.5% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.38 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on March 15, 16, 17, 20, 21, 22, 23, 24, 27 and 28, 2017. On January 12, 2017, the Company declared a dividend of $0.45 per share, which was paid on February 9, 2017, to common stockholders of record as of January 31, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.6 million in cash and 50,453 newly issued shares of common stock, or 0.9% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.25 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on January 27, 30, 31 and February 1, 2, 3, 6, 7, 8 and 9, 2017. On October 5, 2016, the Company declared a dividend of $0.44 per share, which was paid on November 9, 2016, to common stockholders of record as of October 31, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 58,548 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.12 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on October 27, 28, 31 and November 1, 2, 3, 4, 7, 8 and 9, 2016. On August 8, 2016, the Company declared a special dividend of $0.20 per share, which was paid on September 5, 2016, to common stockholders of record as of August 24, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $0.7 million in cash and 24,786 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.06 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on August 22, 23, 24, 25, 26, 29, 30, 31 and September 1 and 2, 2016. On July 7, 2016, the Company declared a dividend of $0.43 per share, which was paid on August 9, 2016, to common stockholders of record as of July 29, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 58,167 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.32 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on July 27, 28, 29 and August 1, 2, 3, 4, 5, 8 and 9, 2016. F- 52 On March 31, 2016, the Company declared a dividend of $0.41 per share, which was paid on April 27, 2016, to common stockholders of record as of April 15, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to our DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 56,728 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.43 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on April 14, 15, 18, 19, 20, 21, 22, 25, 26 and 27, 2016. The following tables summarize dividends declared for the years ended February 28, 2021, February 29, 2020, February 28, 2019, February 28, 2018 and February 28, 2017 (dollars in thousands except for share amounts): Date Declared Record Date Payment Date Amount per Share Total Amount* January 5, 2021 January 26, 2021 February 10, 2021 0.42 4,679 October 7, 2020 October 26, 2020 November 10, 2020 0.41 4,581 July 7, 2020 July 27, 2020 August 12, 2020 0.40 4,487 Total dividends declared $ 1.23 $ 13,747 Date Declared Record Date Payment Date Amount per Share Total Amount* January 7, 2020 January 24, 2020 February 6, 2020 $ 0.56 $ 6,262 August 27, 2019 September 13, 2019 September 26, 2019 0.56 5,323 May 28, 2019 June 13, 2019 June 27, 2019 0.55 4,336 February 26, 2019 March 14, 2019 March 28, 2019 0.54 4,176 Total dividends declared $ 2.21 $ 20,097 Date Declared Record Date Payment Date Amount per Share Total Amount* November 27, 2018 December 17, 2018 January 2, 2019 $ 0.53 $ 3,980 August 28, 2018 September 17, 2018 September 27, 2018 0.52 3,876 May 30, 2018 June 15, 2018 June 27, 2018 0.51 3,204 February 26, 2018 March 14, 2018 March 26, 2018 0.50 3,129 Total dividends declared $ 2.06 $ 14,189 Date Declared Record Date Payment Date Amount per Share Total Amount* November 29, 2017 December 15, 2017 December 27, 2017 $ 0.49 $ 3,052 August 28, 2017 September 15, 2017 September 26, 2017 0.48 2,866 May 30, 2017 June 15, 2017 June 27, 2017 0.47 2,792 February 28, 2017 March 15, 2017 March 28, 2017 0.46 2,666 Total dividends declared $ 1.90 $ 11,376 Date Declared Record Date Payment Date Amount per Share Total Amount* January 12, 2017 January 31, 2017 February 9, 2017 $ 0.45 $ 2,585 October 5, 2016 October 31, 2016 November 9, 2016 0.44 2,509 August 8, 2016 August 24, 2016 September 5, 2016 0.20 1,151 July 7, 2016 July 29, 2016 August 9, 2016 0.43 2,466 March 31, 2016 April 15, 2016 April 27, 2016 0.41 2,346 Total dividends declared $ 1.93 $ 11,057 * Total amount is calculated based on the number of shares outstanding at the date of record. F- 53 Note 13. Financial Highlights The following is a schedule of financial highlights as of and for the years ended February 28, 2021, February 29, 2020, February 28, 2019, February 28, 2018 and February 28, 2017: Per share data February 28, 2021 February 29, 2020 February 28, 2019 February 28, 2018 February 28, 2017 Net asset value at beginning of period $ 27.13 $ 23.62 $ 22.96 $ 21.97 $ 22.06 Adoption of ASC 606 - (0.01 ) - - Net asset value at beginning of period, as adjusted 27.13 23.62 22.95 21.97 22.06 Net investment income(1) 2.07 1.59 2.60 2.11 1.94 Net realized and unrealized gains (losses) on investments(1) (0.74 ) 4.56 0.03 0.82 0.30 Realized losses on extinguishment of debt* (0.01 ) (0.17 ) (0.26 ) Net increase in net assets resulting from operations 1.32 5.98 2.63 2.93 2.24 Distributions declared from net investment income (1.23 ) (2.21 ) (2.06 ) (1.90 ) (1.93 ) Total distributions to stockholders (1.23 ) (2.21 ) (2.06 ) (1.90 ) (1.93 ) Issuance of common stock above net asset value(2) - - 0.15 - - Repurchases of common stock(3) 0.13 - - - - Dilution(4) (0.10 ) (0.26 ) (0.05 ) (0.04 ) (0.14 ) Net asset value at end of period $ 27.25 $ 27.13 $ 23.62 $ 22.96 $ 21.97 Net assets at end of period $ 304,185,770 $ 304,286,853 $ 180,875,187 $ 143,691,367 $ 127,294,777 Shares outstanding at end of period 11,161,416 11,217,545 7,657,156 6,257,029 5,794,600 Per share market value at end of period $ 23.08 $ 22.91 $ 23.04 $ 21.86 $ 22.74 Total return based on market value(5) 7.63 % 9.28 % 16.11 % 5.28 % 80.83 % Total return based on net asset value(6) 7.31 % 26.22 % 13.33 % 14.45 % 12.62 % Ratio/Supplemental data: Ratio of net investment income to average net assets(7)* 7.77 % 6.31 % 11.22 % 9.37 % 8.71 % Ratio of loss on extinguishment of debt to average net assets(7) 0.04 % 0.67 % - - 1.14 % Expenses: Ratio of operating expenses to average net assets(7) 5.39 % 6.25 % 6.98 % 7.81 % 7.21 % Ratio of incentive management fees to average net assets(7) 1.65 % 6.01 % 3.00 % 3.19 % 2.31 % Ratio of interest and debt financing expenses to average net assets(7) 4.56 % 6.23 % 8.05 % 8.05 % 7.75 % Ratio of total expenses to average net assets(7)* 11.60 % 18.49 % 18.03 % 19.05 % 17.27 % Portfolio turnover rate(8) 25.26 % 36.82 % 35.26 % 19.73 % 43.76 % Asset coverage ratio per unit(9) 3,471 6,071 2,345 2,930 2,710 Average market value per unit Revolving Credit Facility(10) N/A N/A N/A N/A N/A SBA Debentures Payable(10) N/A N/A N/A N/A N/A 7.50% Notes Payable 2020 N/A N/A N/A N/A N/A 6.75% Notes Payable 2023(11) N/A N/A $ 25.74 $ 26.05 $ 25.89 6.25% Notes Payable 2025 $ 24.24 $ 25.75 $ 24.97 N/A N/A 7.25% Notes Payable 2025 25.77 N/A N/A N/A N/A 7.75% Notes Payable 2025(10) N/A N/A N/A N/A N/A 6.25% Notes Payable 2027(10) N/A N/A N/A N/A N/A * Certain prior period amounts have been reclassified to conform to current period presentation. F- 54 (1) Per share amounts are calculated using the weighted average shares outstanding during the period. (2) The continuous issuance of common stock may cause an incremental increase in net asset value per share due to the sale of shares at the then prevailing public offering price and the receipt of net proceeds per share by the Company in excess of net asset value per share on each subscription closing date. The per share data was derived by computing (i) the sum of (A) the number of shares issued in connection with subscriptions and/or distribution reinvestment on each share transaction date multiplied by (B) the differences between the net proceeds per share and the net asset value per share on each share transaction date, divided by (ii) the total shares outstanding during the period. (3) Represents the anti-dilutive impact on the net asset value per share (“NAV”) of the Company due to the repurchase of common shares. See Note 10, Stockholders’ Equity. See Note 12, Dividend. (4) Represents the dilutive effect of issuing common stock below net asset value per share during the period in connection with the satisfaction of the Company’s annual RIC distribution requirement and may include the impact of the different share amounts used for different items (weighted average basic common shares outstanding for the corresponding year and actual common shares outstanding at the end of the year) in the per common share data calculation and rounding impacts. See Note 12, Dividend. (5) Total investment return is calculated assuming a purchase of common shares at the current market value on the first day and a sale at the current market value on the last day of the periods reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company’s DRIP. Total investment return does not reflect brokerage commissions. (6) Total investment return is calculated assuming a purchase of common shares at the current net asset value on the first day and a sale at the current net asset value on the last day of the periods reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company’s DRIP. Total investment return does not reflect brokerage commissions. (7) Ratios are annualized. (8) Portfolio turnover rate is calculated using the lesser of year-to-date sales or year-to-date purchases over the average of the invested assets at fair value. (9) Asset coverage ratio per unit is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage ratio per unit is expressed in terms of dollar amounts per $1,000 of indebtedness. Asset coverage ratio per unit does not include unfunded commitments. The inclusion of unfunded commitments in the calculation of the asset coverage ratio per unit would not cause us to be below the required amount of regulatory coverage. (10) The Revolving Credit Facility, SBA Debentures, 7.75% Notes Payable 2025 and 6.25% Notes Payable 2027 are not registered for public trading. (11) On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.5 million, respectively, in aggregate principal amount of the $74.5 million in aggregate principal amount of issued and outstanding 2023 Notes and are no longer listed on the NYSE. F- 55 Note 14. Selected Quarterly Data (Unaudited) 2021 ($ in thousands, except per share numbers) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Total investment income $ 16,214 $ 14,283 $ 13,856 $ 13,297 Net investment income 4,289 4,471 5,335 9,018 Net realized and unrealized gain (loss) 5,096 1,895 16,476 (31,674 ) Realized losses on extinguishment of debt* (129 ) - - - Net increase in net assets resulting from operations 9,256 6,366 21,811 (22,656 ) Net investment income per common share $ 0.38 $ 0.40 $ 0.48 $ 0.80 Net realized and unrealized gain (loss) per common share $ 0.46 $ 0.17 $ 1.48 $ (2.82 ) Dividends declared per common share $ 0.42 $ 0.41 $ 0.40 $ - Net asset value per common share $ 27.25 $ 26.84 $ 26.68 $ 25.11 2020 ($ in thousands, except per share numbers) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Total investment income $ 17,613 $ 14,196 $ 13,888 $ 12,751 Net investment income 1,649 4,575 4,956 3,681 Net realized and unrealized gain (loss) 26,727 9,142 2,624 3,968 Realized losses on extinguishment of debt* (1,583 ) - - - Net increase in net assets resulting from operations 26,793 13,717 7,580 7,649 Net investment income per common share $ 0.15 $ 0.46 $ 0.59 $ 0.48 Net realized and unrealized gain (loss) per common share $ 2.39 $ 0.91 $ 0.31 $ 0.51 Dividends declared per common share $ 0.56 $ 0.56 $ 0.55 $ 0.54 Net asset value per common share $ 27.13 $ 25.30 $ 24.47 $ 24.06 2019 ($ in thousands, except per share numbers) Qtr 4 Qtr 3 Qtr 2 Qtr 1 Total investment income $ 12,984 $ 12,833 $ 11,403 $ 10,488 Net investment income 4,091 5,139 5,145 3,927 Net realized and unrealized gain (loss) 3,764 (1,470 ) (2,002 ) (85 ) Net increase in net assets resulting from operations 7,855 3,669 3,143 3,842 Net investment income per common share $ 0.54 $ 0.69 $ 0.74 $ 0.63 Net realized and unrealized gain (loss) per common share $ 0.50 $ (0.20 ) $ (0.29 ) $ (0.01 ) Dividends declared per common share $ 0.53 $ 0.52 $ 0.51 $ 0.50 Net asset value per common share $ 23.62 $ 23.13 $ 23.16 $ 23.06 * Certain prior period amounts have been reclassified to conform to current period presentation. F- 56 Note 15. Subsequent Events The Company has evaluated subsequent events through the filing of this Form 10-K and determined that there have been no events that have occurred that would require adjustments to the Company’s consolidated financial statements and disclosures in the consolidated financial statements except for the following: The Company announced on March 10, 2021, that it has closed a public offering of $50.0 million aggregate principal amount of its 4.375% notes due 2026 (the “Notes”), which resulted in net proceeds to the Company of approximately $48.8 million based on a public offering price of 100% of the aggregate principal amount of the Notes, after deducting payment of underwriting discounts and commissions and estimated offering expenses payable by the Company. The Notes will mature on February 28, 2026, and may be redeemed in whole or in part at any time or from time to time at the Company’s option at par plus a “make-whole” premium, if applicable. The Notes will bear interest at a rate of 4.375% per year payable semi-annually on February 28 and August 28 of each year, beginning August 28, 2021. On March 22, 2021, the Company declared a dividend of $0.43 per share payable on April 22, 2021, to common stockholders of record on April 8, 2021. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $3.9 million in cash and 38,580 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.69 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on April 9,12, 13, 14, 15, 16, 19, 20, 21 and 22, 2021. Subsequent to February 28, 2021, the global outbreak of the coronavirus pandemic has adversely affected some of the Company’s investments and continues to have adverse consequences on the U.S. and global economies. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual portfolio companies, remains uncertain. At the time of this filing, there is no indication of a reportable subsequent event impacting the Company’s financial statements for the year ended February 28, 2021. The Company cannot predict the extent to which its financial condition and results of operations will be adversely affected at this time. The potential impact to our results will depend to a large extent on future developments and new information that may emerge regarding the duration and severity of COVID-19. The Company continues to observe and respond to the evolving COVID-19 environment and its potential impact on areas across its business. F- 57 INDEX TO OTHER FINANCIAL STATEMENTS Saratoga Investment Corp. CLO 2013-1, Ltd. PAGE Report of Independent Auditors S-2 Statements of Assets and Liabilities as of February 28, 2021 and February 29, 2020 S-3 Statements of Operations for the years ended February 28, 2021, February 29, 2020 and February 28, 2019 S-4 Schedules of Investments as of February 28, 2021 and February 29, 2020 S-7 Statements of Changes in Net Assets for the years ended February 28, 2021, February 29, 2020 and February 28, 2019 S-5 Statements of Cash Flows for the years ended February 28, 2021, February 29, 2020 and February 28, 2019 S-6 Notes to Financial Statements S-28 IMPORTANT NOTE In accordance with certain SEC rules, Saratoga Investment Corp. (the “Company”) is providing additional information regarding one of its portfolio companies, Saratoga Investment Corp. CLO 2013-1, Ltd. (“Saratoga CLO”). The Company owns 100% of the subordinated notes of the Saratoga CLO. The additional financial information regarding the Saratoga CLO does not directly impact the Company’s financial position, results of operations or cash flows. S- 1 Independent Auditor’s Report To the Board of Directors Saratoga Investment Corp. CLO 2013-1, Ltd. We have audited the accompanying financial statements of Saratoga Investment Corp. CLO 2013-1, Ltd., which comprise the statement of assets and liabilities, including the schedule of investments, as of February 28, 2021, and the related statements of operations, changes in net assets and cash flows for the year then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the statements referred to above present fairly, in all material respects, the financial position of Saratoga Investment Corp. CLO 2013-1, Ltd. as of February 28, 2021, and the results of its operations, changes in net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report of Other Auditors The financial statements of Saratoga Investment Corp., CLO 2013-1, Ltd. as of and for the year ended February 29, 2020 and for the year ended February 28, 2019 were audited by other auditors whose report dated May 6, 2020, expressed an unmodified opinion on those statements. /s/ CohnReznick LLP Chicago, Illinois May 5, 2021 S- 2 Saratoga Investment Corp. CLO 2013-1, Ltd. Statements of Assets and Liabilities February 28, 2021 February 29, 2020 ASSETS Investments at fair value Loans at fair value (amortized cost of $594,722,350 and $523,438,207, respectively) $ 591,518,866 $ 500,999,677 Equities at fair value (amortized cost of $527,124 and $2,566,752, respectively) 501,175 257 Total investments at fair value (amortized cost of $595,249,474 and $526,004,959, respectively) 592,020,041 500,999,934 Cash and cash equivalents 114,145,406 9,081,041 Receivable from open trades 1,901,754 10,419,700 Interest receivable (net of reserve of $35,000 and $307,705, respectively) 1,497,333 1,294,523 Prepaid expenses and other assets 118,868 84,526 Total assets $ 709,683,402 $ 521,879,724 LIABILITIES Interest payable $ 124,233 $ 2,090,188 Payable from open trades 66,298,568 36,673,471 Accrued base management fee 6,930 54,441 Accrued subordinated management fee 27,715 217,766 Accounts payable and accrued expenses 809,760 81,822 Due to Affiliate 2,600,000 - Loan payable, related party - 2,500,000 Loan payable, third party - 2,600,000 Saratoga Investment Corp. CLO 2013-1, Ltd. Notes: Class A-1FL-R-2 Senior Secured Floating Rate Notes - 255,000,000 Class A-1FXD-R-2 Senior Secured Fixed Rate Notes - 25,000,000 Class-A-2-R-2 Senior Secured Floating Rate Notes - 40,000,000 Class A-1-R-3 Senior Secured Floating Rate Notes 357,500,000 - Class A-2-R-3 Senior Secured Floating Rate Notes 65,000,000 - Class B-FL-R-3 Senior Secured Floating Rate Notes 60,500,000 - Class B-FXD-R-3 Senior Secured Fixed Rate Notes 11,000,000 - Class B-R-2 Senior Secured Floating Rate Notes - 59,500,000 Class C-FL-R-3 Deferrable Mezzanine Floating Rate Notes 26,000,000 - Class C-FXD-R-3 Deferrable Mezzanine Fixed Rate Notes 6,500,000 - Class C-R-2 Deferrable Mezzanine Floating Rate Notes - 22,500,000 Discount on Class C-R-2 Notes - (530,448 ) Class D-R-2 Deferrable Mezzanine Floating Rate Notes - 31,000,000 Discount on Class D-R-2 Notes - (965,259 ) Class D-R-3 Deferrable Mezzanine Floating Rate Notes 39,000,000 - Discount on Class D-R-3 Notes (292,368 ) - Class E-1-R-2 Deferrable Mezzanine Floating Rate Notes - 27,000,000 Class E-2-R-2 Deferrable Mezzanine Fixed Rate Notes - - Class E-R-3 Deferrable Mezzanine Floating Rate Notes 27,625,000 - Discount on Class E-R-3 Notes (3,037,380 ) - Class F-R-2 Deferrable Junior Floating Rate Notes - 2,500,000 Class F-R-3 Notes Deferrable Junior Floating Rate Notes 17,875,000 - Class G-R-2 Deferrable Junior Floating Rate Notes - 7,500,000 Deferred debt financing costs (2,276,780 ) (2,340,764 ) Subordinated Notes 111,000,000 69,500,000 Discount on Subordinated Notes (48,039,412 ) (22,899,324 ) Total liabilities $ 738,221,266 $ 556,981,893 NET ASSETS Ordinary equity, par value $1.00, 250 ordinary shares authorized, 250 and 250 common shares issued and outstanding, respectively $ 250 $ 250 Total distributable earnings (loss) (28,538,114 ) (35,102,419 ) Total net assets (28,537,864 ) (35,102,169 ) Total liabilities and net assets $ 709,683,402 $ 521,879,724 See accompanying notes to financial statements. S- 3 Saratoga Investment Corp. CLO 2013-1, Ltd. Statements of Operations For the year ended February 28, 2021 February 29, 2020 February 28, 2019 INVESTMENT INCOME Total interest from investments $ 27,100,908 $ 32,413,402 $ 23,413,966 Interest from cash and cash equivalents 3,835 98,964 25,848 Other income 729,235 416,089 623,032 Total investment income 27,833,978 32,928,455 24,062,846 EXPENSES Interest and debt financing expenses 25,903,182 28,511,147 19,612,756 Base management fee 501,526 500,761 344,436 Subordinated management fee 2,006,101 2,003,043 1,377,744 Incentive fees - - 567,932 Professional fees 454,136 322,170 345,407 Trustee expenses 213,212 194,169 181,492 Other expense 55,702 71,096 98,496 Total expenses 29,133,859 31,602,386 22,528,263 NET INVESTMENT INCOME (LOSS) (1,299,881 ) 1,326,069 1,534,583 REALIZED AND UNREALIZED LOSS ON INVESTMENTS Net realized loss from investments (10,922,627 ) (4,795,185 ) (1,344,711 ) Net change in unrealized depreciation on investments 21,775,577 (13,733,384 ) (5,644,371 ) Net realized and unrealized gain (loss) on investments 10,852,950 (18,528,569 ) (6,989,082 ) Realized losses on extinguishment of debt* (2,988,764 ) - (1,199,851 ) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 6,564,305 $ (17,202,500 ) $ (6,654,350 ) * Certain prior period amounts have been reclassified to conform to current period presentation. See accompanying notes to financial statements. S- 4 Saratoga Investment Corp. CLO 2013-1, Ltd. Statement of Changes February 28, 2021 For the year ended February 28, 2021 February 29, 2020 February 28, 2019 INCREASE (DECREASE) FROM OPERATIONS: Net investment income (loss) $ (1,299,881 ) $ 1,326,069 $ 1,534,583 Net realized gain (loss) from investments (10,922,627 ) (4,795,185 ) (1,344,711 ) Realized losses on extinguishment of debt (2,988,764 ) - (1,199,851 ) Net change in unrealized appreciation (depreciation) on investments 21,775,577 (13,733,384 ) (5,644,371 ) Net increase (decrease) in net assets resulting from operations 6,564,305 (17,202,500 ) (6,654,350 ) Total increase (decrease) in net assets 6,564,305 (17,202,500 ) (6,654,350 ) Net assets at beginning of period (35,102,169 ) (17,899,669 ) (11,245,319 ) Net assets at end of period $ (28,537,864 ) $ (35,102,169 ) $ (17,899,669 ) See accompanying notes to financial statements. S- 5 Saratoga Investment Corp. CLO 2013-1, Ltd. Statement of Cash Flows February 28, 2021 For the year ended February 28, 2021 February 29, 2020 February 28, 2019 Operating activities NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 6,564,305 $ (17,202,500 ) $ (6,654,350 ) ADJUSTMENTS TO RECONCILE NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Payment-in-kind and other adjustments to cost 261,032 386,212 (178,424 ) Net accretion of discount on investments (2,346,642 ) (1,623,059 ) (725,719 ) Amortization of discount and deferred debt financing costs 3,211,790 2,751,310 1,140,966 Realized Loss on extinguishment of debt 2,988,764 - 1,199,851 Net realized (gain) loss from investments 10,922,627 4,795,185 1,344,711 Net change in unrealized (appreciation) depreciation on investments (21,775,577 ) 13,733,384 5,644,371 Proceeds from sales and repayments of investments 142,702,281 210,110,101 179,863,573 Purchases of investments (220,783,828 ) (229,996,697 ) (378,523,269 ) (Increase) decrease in operating assets: Interest receivable (202,810 ) 809,972 (450,567 ) Receivable from open trades 8,517,946 (2,564,391 ) 4,540,262 Other assets (34,342 ) (84,526 ) - Increase (decrease) in operating liabilities: - Interest and debt fees payable (1,965,955 ) (2,873,284 ) 3,773,044 Payable for open trades 29,625,097 10,441,224 1,760,889 Accrued base management fee (47,511 ) (53,978 ) 74,874 Accrued subordinated management fee (190,051 ) (215,909 ) 299,496 Accrued incentive fee - - (65,300 ) Accounts payable and accrued expenses 727,938 (1,139,288 ) 1,221,110 Due to affiliate 2,600,000 (1,673,747 ) 1,673,747 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (39,224,936 ) (14,399,991 ) (184,060,735 ) Financing activities Borrowings on debt 627,359,912 5,100,000 482,078,750 Paydowns on debt (475,100,000 ) - (282,400,000 ) Deferred debt financing costs paid (7,970,611 ) (114,621 ) (2,892,182 ) NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 144,289,301 4,985,379 196,786,568 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 105,064,365 (9,414,612 ) 12,725,833 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9,081,041 18,495,653 5,769,820 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 114,145,406 $ 9,081,041 $ 18,495,653 Supplemental Information: Interest paid during the period $ 24,657,347 $ 28,633,121 $ 14,698,746 Supplemental non-cash information: Paid-in-kind interest income and other adjustments to cost $ (261,032 ) $ (386,212 ) $ 178,424 Net accretion of discount on investments 2,346,642 1,623,059 725,719 Amortization of deferred debt financing costs 3,211,790 2,751,310 1,140,966 See accompanying notes to financial statements. S- 6 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 28, 2021 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value Covia Holdings C/S (Unimin) Metals & Mining Common Stock Equity - - - - - 49,312 385,327 $ 362,443 Fusion Connect Warrant Telecommunications Warrants Equity - - - - - 32,832 - 328 J Jill Common Stock Retail Common Stock Equity - - - - - 5,085 - 24,966 McDermott International (Americas), Inc. Energy: Oil & Gas Lealand Finance (McDermott International) C/S - Cl Equity - - - - - 141,797 141,797 113,438 ABB Con-Cise Optical Group LLC Consumer goods: Non-durable Term Loan B Loan 6M USD LIBOR+ 5.00 % 1.00 % 6.00 % 6/15/2023 2,060,408 $ 2,046,779 1,952,875 Adtalem Global Education Inc. Services: Business Adtalem Global Education T/L B (02/21) Loan 1M USD LIBOR+ 4.50 % 0.75 % 5.25 % 2/12/2028 2,000,000 1,980,000 1,980,000 Advisor Group, Inc. Banking, Finance, Insurance & Real Estate Advisor Group Holdings T/L B1 Loan 1M USD LIBOR+ 4.50 % 0.00 % 4.61 % 7/31/2026 995,000 994,026 996,383 Aegis Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 6.50 % 5/9/2025 3,867,445 3,842,999 3,527,419 Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (09/20) Loan 1M USD LIBOR+ 2.75 % 0.75 % 3.50 % 1/4/2026 500,000 495,337 497,500 Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (1/19) Loan 1M USD LIBOR+ 2.75 % 0.00 % 2.88 % 1/4/2026 491,250 491,250 487,566 Ahead Data Blue, LLC Services: Business Term Loan (10/20) Loan 6M USD LIBOR+ 5.00 % 1.00 % 6.00 % 9/18/2027 3,000,000 2,885,073 3,017,250 AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense AI Convoy (Luxembourg) USD T/L B Loan 6M USD LIBOR+ 3.50 % 1.00 % 4.50 % 1/18/2027 1,488,750 1,482,360 1,486,353 AIS HoldCo, LLC Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.00 % 5.21 % 8/15/2025 5,246,875 5,082,782 5,089,469 Alchemy Copyrights, LLC Media: Diversified & Production Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.75 % 4.00 % 8/16/2027 498,750 495,356 498,750 Alchemy US Holdco 1, LLC Metals & Mining Term Loan Loan 1M USD LIBOR+ 5.50 % 0.00 % 5.61 % 10/10/2025 1,900,000 1,879,839 1,850,923 Alion Science and Technology Corporation Aerospace & Defense Term Loan (2/21) Loan 1M USD LIBOR+ 2.75 % 0.75 % 3.50 % 7/23/2024 3,990,000 3,974,081 3,998,299 AlixPartners, LLP Banking, Finance, Insurance & Real Estate AlixPartners T/L B (01/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 3.25 % 1/27/2028 250,000 249,375 249,888 Allen Media, LLC Media: Diversified & Production Allen Media T/L B (1/20) Loan 3M USD LIBOR+ 5.50 % 0.00 % 5.75 % 2/10/2027 2,977,027 2,964,383 2,971,460 Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate Term Loan B (03/18) Loan 3M USD LIBOR+ 4.00 % 1.00 % 5.00 % 4/3/2024 1,223,297 1,218,530 1,040,940 Altium Packaging LLC Containers, Packaging & Glass Altium Packaging (Consolidated Container) T/L (01/ Loan 3M USD LIBOR+ 2.75 % 0.50 % 3.25 % 1/29/2028 500,000 497,500 499,000 Altra Industrial Motion Corp. Capital Equipment Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.11 % 10/1/2025 1,522,387 1,519,700 1,520,012 American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.50 % 1.00 % 5.50 % 4/6/2024 4,230,503 4,228,066 4,239,302 American Trailer World Corp Automotive American Trailer World T/L Loan 1M USD LIBOR+ 3.75 % 0.75 % 4.50 % 2/17/2028 2,000,000 1,990,000 1,990,000 AmeriLife Holdings LLC Banking, Finance, Insurance & Real Estate AmeriLife T/L Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.12 % 3/18/2027 1,492,642 1,484,080 1,490,149 AmWINS Group, LLC Banking, Finance, Insurance & Real Estate AmWINS Group (2/21) T/L Loan 1M USD LIBOR+ 2.25 % 0.75 % 3.00 % 2/17/2028 2,000,000 1,995,000 1,999,160 Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+ 3.75 % 0.00 % 4.00 % 8/11/2025 977,500 974,191 669,891 Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan 3M USD LIBOR+ 2.75 % 1.00 % 3.75 % 12/7/2023 480,088 478,981 407,076 Anchor Packaging, LLC Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.11 % 7/10/2026 997,468 987,853 999,962 APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 10/1/2026 990,000 985,758 990,000 APLP Holdings Limited Partnership Energy: Electricity APLP Holdings T/L B (01/20) Loan 1M USD LIBOR+ 2.50 % 1.00 % 3.50 % 4/14/2025 1,618,421 1,618,421 1,617,207 Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 2.86 % 5/15/2026 3,000,000 2,960,051 2,925,000 AppLovin Corporation High Tech Industries Applovin T/L B Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.61 % 8/15/2025 1,000,000 1,000,000 998,100 Aramark Corporation Services: Consumer Term Loan Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.86 % 1/15/2027 2,481,250 2,401,701 2,454,105 Arctic Glacier U.S.A., Inc. Beverage, Food & Tobacco Term Loan (3/18) Loan 3M USD LIBOR+ 3.50 % 1.00 % 4.50 % 3/20/2024 3,350,967 3,337,028 3,140,124 Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.36 % 10/1/2025 1,960,000 1,956,623 1,954,492 See accompanying notes to financial statements. S- 7 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 28, 2021 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value ARISTOCRAT LEISURE LIMITED Hotel, Gaming & Leisure Term Loan (5/20) Loan 2M USD LIBOR+ 3.75 % 1.00 % 4.75 % 10/19/2024 995,000 978,205 1,000,184 ASG Technologies Group, Inc High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 4.50 % 7/31/2024 461,401 460,194 454,480 ASP MSG Acquisition Co., Inc Beverage, Food & Tobacco Term Loan (2/17) Loan 1M USD LIBOR+ 4.00 % 1.00 % 5.00 % 8/16/2023 3,830,991 3,793,847 3,835,779 Aspen Dental Management, Inc. Services: Consumer Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 2.86 % 4/30/2025 1,950,276 1,944,024 1,926,872 Asplundh Tree Expert, LLC Services: Business Term Loan Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 9/4/2027 997,500 992,854 998,128 Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B6 Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.11 % 11/3/2023 328,929 327,483 328,244 Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.36 % 12/18/2026 1,525,365 1,515,790 1,520,362 Avast Software S.R.O. (Sybil Finance) High Tech Industries Term Loan B (4/18) Loan 3M USD LIBOR+ 2.25 % 1.00 % 3.25 % 9/29/2023 650,351 642,686 650,351 Avaya, Inc. Telecommunications Term Loan B1 Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.36 % 12/15/2027 1,755,766 1,745,975 1,760,437 Avaya, Inc. Telecommunications Avaya T/L B-2 Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.11 % 12/15/2027 1,000,000 1,000,000 1,001,250 Avison Young (Canada) Inc Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.00 % 5.19 % 1/31/2026 3,441,108 3,392,968 3,441,108 Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3 Loan 1M USD LIBOR+ 1.75 % 0.75 % 2.50 % 1/15/2025 1,000,000 869,301 996,390 Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 Loan 1M USD LIBOR+ 2.50 % 0.75 % 3.25 % 12/20/2027 500,000 495,171 500,625 Azalea TopCo, Inc. Services: Business Incremental Term Loan Loan 3M USD LIBOR+ 4.00 % 0.75 % 4.75 % 7/24/2026 500,000 495,287 501,250 B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 10/10/2026 706,458 700,750 706,960 B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.86 % 11/19/2026 1,485,000 1,447,423 1,469,912 Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.00 % 0.75 % 4.75 % 10/14/2027 997,500 983,184 1,002,488 BALL METALPACK, LLC (PE Spray) Containers, Packaging & Glass Term Loan Loan 3M USD LIBOR+ 4.50 % 0.00 % 4.69 % 7/25/2025 3,904,887 3,891,579 3,887,823 Bass Pro Group, LLC Retail Term Loan B (02/21) Loan 1M USD LIBOR+ 4.25 % 0.75 % 5.00 % 2/26/2028 1,000,000 995,000 1,000,780 Berry Plastics Holding Corporation Chemicals, Plastics, & Rubber Term Loan Y Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.12 % 7/1/2026 4,937,374 4,932,962 4,932,980 Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.36 % 4/23/2026 1,000,000 992,500 985,000 Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Blackstone Mortgage T/L B-2 Loan 1M USD LIBOR+ 4.75 % 1.00 % 5.75 % 4/23/2026 1,494,994 1,484,017 1,498,731 Blount International, Inc. Forest Products & Paper Term Loan B (09/18) Loan 1M USD LIBOR+ 3.75 % 1.00 % 4.75 % 4/12/2023 3,418,806 3,416,907 3,422,225 Blucora, Inc. Services: Consumer Term Loan (11/17) Loan 3M USD LIBOR+ 4.00 % 1.00 % 5.00 % 5/22/2024 2,451,227 2,443,549 2,454,291 Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.12 % 5/24/2027 1,485,050 1,473,875 1,475,620 Boxer Parent Company, Inc. High Tech Industries Boxer Parent Company T/L (BMC Software) (2/21) Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.90 % 10/2/2025 528,897 528,897 528,829 Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 4.49 % 9/5/2025 977,500 974,177 975,868 BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Phoenix Guarantor (Brightspring) T/L (02/21) Loan 6M USD LIBOR+ 3.50 % 0.00 % 3.76 % 3/5/2026 1,000,000 1,000,000 1,000,710 BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.36 % 1/22/2027 2,009,429 2,007,872 1,996,207 Brookfield WEC Holdings Inc. Energy: Electricity Brookfield WEC T/L (Westinghouse) (1/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 3.25 % 8/1/2025 1,492,462 1,495,340 1,488,492 Buckeye Partners, L.P. Utilities: Oil & Gas Buckeye Partners T/L (1/21) Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.37 % 11/1/2026 1,989,987 1,975,617 1,987,182 BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan Loan 1M USD LIBOR+ 6.25 % 0.00 % 6.37 % 11/18/2024 2,230,357 2,160,253 2,255,449 Cable & Wireless Communications Limited Telecommunications Term Loan B-5 Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.36 % 1/31/2028 2,000,000 2,000,000 1,988,220 Callaway Golf Company Retail Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 4.61 % 1/4/2026 690,000 679,310 692,298 Cardtronics Inc Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 5.00 % 6/29/2027 1,494,994 1,489,184 1,495,936 CareerBuilder, LLC Services: Business Term Loan Loan 3M USD LIBOR+ 6.75 % 1.00 % 7.75 % 7/31/2023 3,393,388 3,230,834 3,230,505 CareStream Health, Inc. Healthcare & Pharmaceuticals Term Loan Loan 6M USD LIBOR+ 6.75 % 1.00 % 7.75 % 5/8/2023 2,306,786 2,302,501 2,298,136 Casa Systems, Inc Telecommunications Term Loan Loan 6M USD LIBOR+ 4.00 % 1.00 % 5.00 % 12/20/2023 1,440,000 1,433,828 1,435,205 See accompanying notes to financial statements. S- 8 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 28, 2021 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan 3M USD LIBOR+ 3.75 % 0.00 % 4.00 % 1/27/2027 496,875 494,809 493,059 Catalent Pharma Solutions, Inc. Healthcare & Pharmaceuticals Term Loan B3 (2/21) Loan 1M USD LIBOR+ 2.00 % 0.50 % 2.50 % 5/18/2026 500,000 500,000 500,780 CBI BUYER, INC. Consumer goods: Durable New Trojan Parent (Careismatic/CBI Buyer) 1st Lien Loan 1M USD LIBOR+ 3.25 % 0.50 % 3.75 % 1/6/2028 1,000,000 997,597 1,000,630 CCI Buyer, Inc Telecommunications Term Loan Loan 3M USD LIBOR+ 4.00 % 0.75 % 4.75 % 12/17/2027 250,000 247,558 251,720 CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 5.50 % 0.00 % 5.61 % 9/25/2025 2,450,000 2,432,841 2,417,856 Cengage Learning Acquisitions, Inc. Media: Advertising, Printing & Publishing Term Loan Loan 6M USD LIBOR+ 4.25 % 1.00 % 5.25 % 6/7/2023 1,432,459 1,424,074 1,410,370 CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.36 % 3/15/2027 2,970,000 2,967,083 2,957,170 Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.87 % 4/3/2025 989,822 940,018 979,617 CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Citadel Securities T/L B (01/21) Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 2/27/2028 5,000,000 4,993,750 4,970,300 Clarios Global LP Automotive Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.61 % 4/30/2026 1,454,464 1,442,855 1,455,381 Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 5.00 % 1.00 % 6.00 % 8/9/2026 997,475 972,272 999,968 CNT Holdings I Corp Retail Term Loan Loan 6M USD LIBOR+ 3.75 % 0.75 % 4.50 % 11/8/2027 500,000 497,627 501,955 Cole Haan Consumer goods: Non-durable Term Loan B Loan 3M USD LIBOR+ 5.50 % 0.00 % 5.69 % 2/7/2025 950,000 942,246 874,000 Compass Power Generation, LLC Utilities: Electric Term Loan B (08/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 4.50 % 12/20/2024 1,802,012 1,798,648 1,796,390 Concordia Healthcare Corp. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 5.50 % 1.00 % 6.50 % 9/6/2024 1,159,370 1,118,148 1,156,472 Connect Finco SARL Telecommunications Term Loan (1/21) Loan 1M USD LIBOR+ 3.50 % 1.00 % 4.50 % 12/11/2026 2,977,500 2,831,053 2,987,058 Consolidated Communications, Inc. Telecommunications Term Loan B (10/20) Loan 1M USD LIBOR+ 4.75 % 1.00 % 5.75 % 10/2/2027 997,500 983,260 1,002,328 CoreCivic, Inc. Banking, Finance, Insurance & Real Estate Term Loan (12/19) Loan 1M USD LIBOR+ 4.50 % 1.00 % 5.50 % 12/18/2024 3,454,545 3,404,660 3,340,822 CPI Card Group Banking, Finance, Insurance & Real Estate Term Loan B (1st Lien) Loan 3M USD LIBOR+ 4.50 % 1.00 % 5.50 % 8/17/2022 1,436,782 1,431,179 1,422,414 CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.36 % 1/15/2026 490,000 489,175 486,849 CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B (03/17) Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.36 % 7/15/2025 1,954,315 1,936,120 1,941,925 CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 4/15/2027 495,000 495,000 492,911 CTS Midco, LLC High Tech Industries Term Loan B Loan 3M USD LIBOR+ 6.00 % 1.00 % 7.00 % 11/2/2027 2,000,000 1,942,014 2,002,500 Daseke Inc Transportation: Cargo Replacement Term Loan Loan 1M USD LIBOR+ 5.00 % 1.00 % 6.00 % 2/27/2024 1,935,738 1,928,854 1,939,978 DCert Buyer, Inc. High Tech Industries DCert Buyer T/L (Digicert) Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.11 % 10/16/2026 1,500,000 1,500,000 1,500,540 Dealer Tire, LLC Automotive Dealer Tire T/L B-1 Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.36 % 12/12/2025 2,970,000 2,963,784 2,966,288 Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.36 % 3/31/2025 6,380,682 6,326,939 6,247,773 Dell International LLC High Tech Industries Term Loan B-2 Loan 1M USD LIBOR+ 1.75 % 0.75 % 2.00 % 9/19/2025 2,530,374 2,528,058 2,537,763 Delta 2 (Lux) S.a.r.l. Hotel, Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.50 % 1.00 % 3.50 % 2/1/2024 818,289 817,549 813,175 Delta Air Lines, Inc. Transportation: Consumer Term Loan B (4/20) Loan 1M USD LIBOR+ 4.75 % 1.00 % 5.75 % 4/29/2023 2,243,737 2,240,713 2,257,761 DHX Media Ltd. Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 5.25 % 12/29/2023 279,282 278,315 278,584 Diamond Sports Group, LLC Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.37 % 8/24/2026 3,443,844 2,912,847 2,582,883 Digital Room LLC Media: Advertising, Printing & Publishing Term Loan Loan 6M USD LIBOR+ 5.00 % 0.00 % 5.27 % 5/21/2026 2,955,000 2,925,480 2,910,675 Dole Food Company Inc. Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 2.75 % 1.00 % 3.75 % 4/6/2024 456,250 455,172 456,410 DRW Holdings, LLC Banking, Finance, Insurance & Real Estate DRW Holdings T/L (2/21) Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.87 % 2/24/2028 552,519 549,756 551,138 DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.36 % 11/29/2026 5,947,481 5,897,811 5,932,612 DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan 1M USD LIBOR+ 2.75 % 0.00 % 2.86 % 8/21/2025 3,915,462 3,901,786 3,886,801 EagleTree - Carbride Acquisition (Corsair Components) Consumer goods: Durable Term Loan Loan 1M USD LIBOR+ 3.75 % 1.00 % 4.75 % 8/28/2024 2,868,047 2,867,816 2,868,047 See accompanying notes to financial statements. S- 9 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 28, 2021 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (06/18) Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.11 % 7/21/2025 1,225,000 1,220,875 1,214,502 Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.36 % 6/26/2025 1,950,000 1,947,116 1,903,083 ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan 1M USD LIBOR+ 6.50 % 0.00 % 6.61 % 12/14/2025 2,558,602 2,457,436 2,564,999 Encapsys, LLC (Cypress Performance Group) Chemicals, Plastics, & Rubber Term Loan B2 Loan 1M USD LIBOR+ 3.25 % 1.00 % 4.25 % 11/7/2024 492,284 488,655 492,284 Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan B (4/17) Loan 3M USD LIBOR+ 4.25 % 0.75 % 5.00 % 4/29/2024 3,896,646 3,879,939 3,869,057 Endure Digital, Inc. High Tech Industries Endurance International T/L B Loan 1M USD LIBOR+ 3.50 % 0.75 % 4.25 % 1/27/2028 2,500,000 2,487,500 2,481,250 Ensemble RCM LLC Services: Business Term Loan Loan 3M USD LIBOR+ 3.75 % 0.00 % 3.96 % 7/24/2026 3,000,000 2,992,500 3,004,230 Enterprise Merger Sub Inc. Healthcare & Pharmaceuticals Term Loan B (06/18) Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.86 % 10/10/2025 4,900,000 4,891,890 4,204,200 EVERI Payments Inc. Hotel, Gaming & Leisure Everi Payments T/L B Loan 1M USD LIBOR+ 2.75 % 0.75 % 3.50 % 5/9/2024 3,000,000 3,000,000 2,988,120 EyeCare Partners, LLC Healthcare & Pharmaceuticals EyeCare Partners T/L B Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.86 % 2/18/2027 1,987,838 1,986,442 1,956,032 Finco I LLC Banking, Finance, Insurance & Real Estate FinCo T/L B (9/20) (Fortress Investment) Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 6/27/2025 1,822,272 1,815,715 1,821,142 First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan 3M USD LIBOR+ 2.50 % 0.00 % 2.75 % 2/1/2027 5,395,500 5,375,893 5,378,990 Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan 1M USD LIBOR+ 3.25 % 1.00 % 4.25 % 4/18/2025 1,330,058 1,324,204 1,196,813 Flex Acquisition Company (Hilex Poly/Novolex) T/L (02/21) Containers, Packaging & Glass Term Loan Loan 3M USD LIBOR+ 4.00 % 0.50 % 4.50 % 3/2/2028 1,000,000 995,000 997,810 FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Focus Financial T/L (1/20) Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.11 % 7/3/2024 500,000 499,435 497,815 Franchise Group, Inc. Services: Consumer Franchise Group First Out T/L Loan 6M USD LIBOR+ 4.75 % 0.75 % 5.50 % 10/25/2026 1,000,000 990,000 1,000,000 Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.38 % 8/1/2025 4,398,742 4,374,564 4,382,247 Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.36 % 1/29/2027 1,990,000 1,985,937 1,971,453 Fusion Telecommunications International Inc. Telecommunications Take Back 2nd Out Term Loan Loan 6M USD LIBOR+ 1.00 % 2.00 % 3.00 % 7/14/2025 813,105 795,920 412,651 Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan 3M USD LIBOR+ 3.00 % 0.50 % 3.50 % 12/31/2027 2,000,000 1,980,103 1,995,000 General Nutrition Centers, Inc. (b) Retail Term Loan B2 Loan Prime+ 7.75 % 0.75 % 11.00 % 3/4/2021 389,896 389,896 292,422 Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan 3M USD LIBOR+ 2.00 % 0.00 % 2.25 % 12/30/2026 1,488,750 1,482,600 1,489,986 GEO Group, Inc., The Banking, Finance, Insurance & Real Estate Term Loan Refinance Loan 1M USD LIBOR+ 2.00 % 0.75 % 2.75 % 3/22/2024 3,963,971 3,665,551 3,609,710 GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 8/27/2025 3,969,542 3,201,121 3,862,603 GI Chill Acquisition LLC Services: Business Term Loan Loan 3M USD LIBOR+ 4.00 % 0.00 % 4.25 % 8/1/2025 2,443,750 2,435,372 2,448,344 Gigamon Inc. Services: Business Term Loan B Loan 6M USD LIBOR+ 3.75 % 0.75 % 4.50 % 12/27/2024 2,930,400 2,913,040 2,930,400 Global Business Travel (GBT) III Inc. Hotel, Gaming & Leisure Term Loan Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 8/13/2025 4,398,750 4,397,949 4,215,454 Global Tel*Link Corporation Telecommunications Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.36 % 11/29/2025 5,000,167 4,764,345 4,675,956 Go Wireless Holdings, Inc. Telecommunications Term Loan Loan 1M USD LIBOR+ 6.50 % 1.00 % 7.50 % 12/22/2024 3,024,675 2,992,914 3,017,114 Goodyear Tire & Rubber Company, The Chemicals, Plastics, & Rubber Second Lien Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.12 % 3/3/2025 3,000,000 2,933,783 2,953,740 Graham Packaging T/L (2/21) Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+ 3.75 % 0.75 % 4.50 % 8/4/2027 979,661 972,912 980,660 Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.36 % 4/12/2024 3,419,615 3,393,171 3,398,243 Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.75 % 1.00 % 3.75 % 3/31/2025 2,399,991 2,398,303 2,395,791 Guidehouse LLP (fka PricewaterhouseCoopers) Aerospace & Defense Term Loan Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.11 % 5/1/2025 4,924,683 4,903,634 4,951,572 Harbor Freight Tools USA, Inc. Retail Term Loan B (10/20) Loan 1M USD LIBOR+ 3.25 % 0.75 % 4.00 % 10/20/2027 2,992,500 2,967,649 3,004,979 Harland Clarke Holdings Corp. Media: Advertising, Printing & Publishing Term Loan Loan 3M USD LIBOR+ 4.75 % 1.00 % 5.75 % 11/3/2023 1,612,899 1,607,974 1,536,738 Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan 1M USD LIBOR+ 3.75 % 1.00 % 4.75 % 6/3/2024 244,627 244,418 243,418 Hillman Group Inc. (The) (New) Consumer goods: Durable Hillman Group T/L B-1 (2/21) Loan 6M USD LIBOR+ 2.75 % 0.50 % 3.25 % 2/23/2028 3,523,207 3,514,399 3,523,207 See accompanying notes to financial statements. S- 10 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 28, 2021 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value Hillman Group Inc. (The) (New) Consumer goods: Durable Hillman Group T/L B-2 (2/21) Loan 6M USD LIBOR+ 2.75 % 0.50 % 2.99 % 2/23/2028 632,911 631,329 632,911 Hillman Group Inc. (The) (New)(a) Consumer goods: Durable Unfunded Commitment Loan 3M USD LIBOR+ 2.75 % 0.50 % 0.00 % 2/23/2028 - (2,110 ) - HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 8/18/2025 3,910,000 3,897,913 3,912,111 Holley Purchaser, Inc Automotive Term Loan B Loan 3M USD LIBOR+ 5.00 % 0.00 % 5.21 % 10/24/2025 2,450,000 2,432,788 2,423,981 Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 3M USD LIBOR+ 3.25 % 0.75 % 4.00 % 11/12/2027 1,692,335 1,686,025 1,695,212 Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan B (01/20) Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.11 % 2/18/2027 5,940,000 5,920,701 5,925,150 Idera, Inc. High Tech Industries Idera T/L (1/21) Loan 1M USD LIBOR+ 3.75 % 0.75 % 4.50 % 6/28/2028 1,000,000 997,500 1,000,000 Idera, Inc. High Tech Industries Term Loan B Loan 6M USD LIBOR+ 4.00 % 1.00 % 5.00 % 6/27/2024 3,896,805 3,886,520 3,896,805 INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber INEOS US Petrochem T/L (INEOS Quattro) Loan 1M USD LIBOR+ 2.75 % 0.50 % 3.25 % 1/20/2026 1,000,000 995,073 1,003,750 INFINITE BIDCO LLC Wholesale Infinite Bidco T/L Loan 1M USD LIBOR+ 3.75 % 0.75 % 4.50 % 2/22/2028 1,500,000 1,496,250 1,500,000 Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan 3M USD LIBOR+ 4.00 % 1.00 % 5.00 % 5/1/2024 3,421,586 3,360,370 3,400,920 Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.61 % 2/4/2027 496,250 494,123 498,424 Intermediate Dutch Holdings Services: Business Nielsen Consumer T/L B Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.13 % 2/3/2028 250,000 248,750 250,313 Isagenix International, LLC Beverage, Food & Tobacco Term Loan Loan 3M USD LIBOR+ 5.75 % 1.00 % 6.75 % 6/14/2025 2,622,582 2,586,650 1,652,227 Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.62 % 3/14/2025 957,262 954,285 944,100 J Jill Group, Inc Retail Priming Term Loan Loan 6M USD LIBOR+ 5.00 % 1.00 % 6.00 % 5/8/2024 1,779,081 1,776,970 1,138,612 Jane Street Group Banking, Finance, Insurance & Real Estate Jane Street Group T/L (1/21) Loan 1M USD LIBOR+ 2.75 % 0.00 % 2.86 % 1/31/2028 2,500,000 2,496,997 2,491,975 Jefferies Finance LLC / JFIN Co-Issuer Corp Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.13 % 6/3/2026 3,796,822 3,781,950 3,789,380 Journey Personal Care Corp. Consumer goods: Non-durable Journey Personal Care T/L B (Domtar) Loan 6M USD LIBOR+ 4.25 % 0.75 % 5.00 % 2/19/2028 1,000,000 995,000 1,002,500 JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 6.50 % 11/15/2025 4,423,877 4,386,340 4,154,021 KAR Auction Services, Inc. Automotive Term Loan B (09/19) Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.44 % 9/19/2026 246,875 246,391 243,172 Kindred Healthcare, Inc. Healthcare & Pharmaceuticals Term Loan (6/18) Loan 1M USD LIBOR+ 4.50 % 0.00 % 4.63 % 7/2/2025 1,979,747 1,962,749 1,982,222 Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Klockner Pentaplast T/L (Kleopatra) Loan 1M USD LIBOR+ 4.75 % 0.50 % 5.25 % 2/4/2026 1,500,000 1,492,500 1,500,945 Kodiak BP, LLC Construction & Building Term Loan Loan 1M USD LIBOR+ 3.25 % 0.75 % 4.00 % 2/26/2028 500,000 497,500 499,375 KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 3M USD LIBOR+ 4.75 % 1.00 % 5.75 % 8/4/2027 500,000 488,256 501,250 Lakeland Tours, LLC Hotel, Gaming & Leisure 2nd Out Take Back PIK Term Loan Loan 3M USD LIBOR+ 1.50 % 1.25 % 2.75 % 9/25/2025 585,723 478,159 524,222 Lakeland Tours, LLC Hotel, Gaming & Leisure Third Out PIK Term Loan Loan 3M USD LIBOR+ 1.50 % 1.25 % 2.75 % 9/25/2025 777,562 451,283 515,780 Lakeland Tours, LLC Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan Fixed 13.25 % 0.00 % 13.25 % 9/27/2027 763,381 128,938 277,359 Lakeland Tours, LLC Hotel, Gaming & Leisure Priority Exit PIK Term Loan (9/20) Loan 3M USD LIBOR+ 6.00 % 1.25 % 7.25 % 9/25/2023 306,588 292,181 306,076 Lealand Finance Company B.V. Energy: Oil & Gas Exit Term Loan Loan 1M USD LIBOR+ 1.00 % 0.00 % 1.11 % 6/30/2025 324,682 324,682 209,258 Learfield Communications, Inc Media: Advertising, Printing & Publishing Initial Term Loan (A-L Parent) Loan 1M USD LIBOR+ 3.25 % 1.00 % 4.25 % 12/1/2023 480,000 478,959 439,296 Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan 1M USD LIBOR+ 3.50 % 1.00 % 4.50 % 2/28/2025 2,905,639 2,876,036 2,878,413 Liftoff Mobile, Inc. Media: Advertising, Printing & Publishing Liftoff Mobile T/L Loan 1M USD LIBOR+ 3.50 % 0.75 % 4.25 % 2/17/2028 1,000,000 995,000 997,500 Lightstone Generation LLC Energy: Electricity Term Loan B Loan 3M USD LIBOR+ 3.75 % 1.00 % 4.75 % 1/30/2024 1,322,520 1,321,129 1,133,241 Lightstone Generation LLC Energy: Electricity Term Loan C Loan 3M USD LIBOR+ 3.75 % 1.00 % 4.75 % 1/30/2024 74,592 74,517 63,917 Lindblad Expeditions, Inc. Hotel, Gaming & Leisure Cayman Term Loan Loan 1M USD LIBOR+ 3.50 % 0.75 % 4.25 % 3/21/2025 98,191 98,037 90,827 Lindblad Expeditions, Inc. Hotel, Gaming & Leisure US 2018 Term Loan Loan 1M USD LIBOR+ 3.50 % 0.75 % 4.25 % 3/21/2025 392,764 392,147 363,307 Liquidnet Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 6M USD LIBOR+ 3.25 % 1.00 % 4.25 % 7/11/2024 1,960,766 1,957,232 1,952,237 LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan 1M USD LIBOR+ 4.75 % 0.00 % 4.87 % 8/31/2027 4,000,000 3,927,780 3,996,680 LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.87 % 11/11/2026 1,232,760 1,230,271 1,224,032 See accompanying notes to financial statements. S- 11 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 28, 2021 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value MA FinanceCo LLC High Tech Industries Term Loan B4 Loan 3M USD LIBOR+ 4.25 % 1.00 % 5.25 % 5/29/2025 2,474,961 2,466,727 2,502,804 Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.86 % 8/29/2025 1,317,074 1,317,074 1,296,080 Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan 3M USD LIBOR+ 1.75 % 0.00 % 1.95 % 2/15/2027 250,000 249,476 247,735 Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 4.61 % 2/28/2025 3,427,214 3,397,660 3,380,090 McAfee, LLC Services: Business Term Loan B Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.86 % 9/30/2024 1,928,400 1,921,750 1,932,121 McGraw-Hill Global Education Holdings, LLC Media: Advertising, Printing & Publishing Term Loan B Loan 3M USD LIBOR+ 4.75 % 1.00 % 5.75 % 11/1/2024 2,544,391 2,364,344 2,538,666 Meredith Corporation Media: Advertising, Printing & Publishing Term Loan B2 Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 1/31/2025 578,738 577,965 575,555 Mermaid Bidco Inc. High Tech Industries Term Loan 12/20 Loan 2M USD LIBOR+ 4.25 % 0.75 % 5.00 % 12/1/2027 500,000 497,584 501,565 Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan 3M USD LIBOR+ 2.50 % 0.00 % 2.75 % 3/1/2026 3,944,962 3,923,644 3,942,003 Michaels Stores, Inc. Retail Term Loan B (9/20) Loan 1M USD LIBOR+ 3.50 % 0.75 % 4.25 % 10/1/2027 2,571,414 2,565,167 2,567,557 Midwest Physician Administrative Services LLC (Dupage Medical Group) Healthcare & Pharmaceuticals Term Loan (2/18) Loan 1M USD LIBOR+ 2.75 % 0.75 % 3.50 % 8/15/2024 961,003 958,186 960,522 Mitchell International, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/20) Loan 1M USD LIBOR+ 4.25 % 0.50 % 4.75 % 11/29/2024 997,500 944,391 1,000,991 MKS Instruments, Inc. High Tech Industries Term Loan B6 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.86 % 2/2/2026 877,977 871,414 878,530 MLN US Holdco LLC Telecommunications Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 4.61 % 12/1/2025 980,000 978,728 913,605 MMM Holdings, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 6M USD LIBOR+ 5.75 % 1.00 % 6.75 % 12/24/2026 6,724,026 6,605,313 6,730,347 MRC Global Inc. Metals & Mining Term Loan B2 Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.11 % 9/20/2024 484,961 484,234 477,687 Murphy USA Inc. Retail Murphy Oil USA T/L (Quick Chek) Loan 1M USD LIBOR+ 1.75 % 0.50 % 2.25 % 1/21/2028 250,000 249,384 250,938 MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental) Loan 3M USD LIBOR+ 3.75 % 0.00 % 4.00 % 9/30/2024 2,842,097 2,802,381 2,740,265 Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.63 % 11/14/2025 1,487,455 1,457,602 1,483,737 National Mentor Holdings, Inc. Healthcare & Pharmaceuticals National Mentor /Civitas (2/21) T/L C Loan 1M USD LIBOR+ 4.00 % 0.75 % 4.75 % 2/17/2028 87,464 87,026 87,289 National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.37 % 3/9/2026 1,880,666 1,866,176 1,878,014 National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C Loan 3M USD LIBOR+ 4.25 % 0.00 % 4.51 % 3/9/2026 86,065 85,428 85,943 National Mentor Holdings, Inc. Healthcare & Pharmaceuticals National Mentor/ Civitas (2/21) T/L Loan 1M USD LIBOR+ 4.00 % 0.75 % 4.75 % 2/17/2028 2,623,907 2,610,787 2,618,659 National Mentor/ Civitas (2/21) DDTL (a) Healthcare & Pharmaceuticals National Mentor (Civitas) T/L B (2/19) Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.37 % 3/9/2026 - - (577 ) NeuStar, Inc. Telecommunications Term Loan B4 (03/18) Loan 3M USD LIBOR+ 3.50 % 1.00 % 4.50 % 8/8/2024 2,641,566 2,611,256 2,542,032 NeuStar, Inc. Telecommunications Term Loan B-5 Loan 3M USD LIBOR+ 4.50 % 1.00 % 5.50 % 8/8/2024 885,162 873,202 859,050 Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Nexstar Broadcasting T/L B4 (6/19) Loan 1M USD LIBOR+ 2.75 % 0.00 % 2.87 % 9/18/2026 1,113,795 1,101,160 1,114,842 Next Level Apparel, Inc. Retail Term Loan Loan 3M PL WIBOR+ 6.00 % 1.00 % 7.00 % 8/9/2024 1,866,250 1,853,906 1,716,950 NM Z Parent Inc (Zep Inc) Chemicals, Plastics, & Rubber Term Loan Loan 6M USD LIBOR+ 4.00 % 1.00 % 5.00 % 8/9/2024 2,418,750 2,411,955 2,392,845 NorthPole Newco S.a.r.l Aerospace & Defense Term Loan Loan 3M USD LIBOR+ 7.00 % 0.00 % 7.25 % 3/3/2025 5,312,500 4,890,323 4,774,609 Novetta Solutions, LLC Aerospace & Defense Term Loan Loan 3M USD LIBOR+ 5.00 % 1.00 % 6.00 % 10/16/2022 1,899,870 1,894,609 1,889,193 Novetta Solutions, LLC Aerospace & Defense Second Lien Term Loan Loan 3M USD LIBOR+ 8.50 % 1.00 % 9.50 % 10/16/2023 1,000,000 995,635 997,500 NPC International, Inc. (b) Beverage, Food & Tobacco Term Loan Loan Prime+ 4.50 % 1.00 % 7.75 % 4/19/2024 487,500 487,124 430,463 Nuvei Technologies Corp. High Tech Industries US Term Loan Loan 1M USD LIBOR+ 4.00 % 0.75 % 4.75 % 9/29/2025 250,000 249,712 251,563 Owens & Minor Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 4.62 % 5/2/2025 487,500 481,151 488,631 Pacific Gas and Electric Company Utilities: Electric PG&E Corp T/L Loan 1M USD LIBOR+ 3.00 % 0.50 % 3.50 % 6/18/2025 1,494,994 1,487,395 1,499,195 PAE Holding Corp Aerospace & Defense Term Loan B (10/20) Loan 3M USD LIBOR+ 4.50 % 0.75 % 5.25 % 10/14/2027 2,000,000 1,971,195 2,009,160 Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Panther Commercial T/L (1/21) (Forcepoint) Loan 3M USD LIBOR+ 4.50 % 0.50 % 4.71 % 1/7/2028 500,000 496,307 499,375 Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.86 % 3/31/2027 496,437 485,943 496,934 PaySafe Group PLC Services: Business Term Loan B1 (PI UK Holdco II) Loan 1M USD LIBOR+ 3.50 % 1.00 % 4.50 % 1/3/2025 1,458,750 1,453,593 1,457,320 PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 5/29/2026 878,269 874,719 876,803 Penn National Gaming Hotel, Gaming & Leisure Term Loan B-1 Loan 1M USD LIBOR+ 2.25 % 0.75 % 3.00 % 10/15/2025 1,782,979 1,722,678 1,780,109 Peraton Corp. Aerospace & Defense Peraton T/L B Loan 6M USD LIBOR+ 3.75 % 0.75 % 4.50 % 2/22/2028 1,811,655 1,802,597 1,818,449 Peraton Corp. (a) Aerospace & Defense Unfunded Commitment Loan 6M USD LIBOR+ 3.75 % 0.75 % 4.50 % 2/1/2028 - (15,942 ) 11,956 PGX Holdings, Inc. Services: Consumer Term Loan Loan 12M USD LIBOR+ 5.25 % 1.00 % 6.25 % 9/29/2023 3,149,230 3,127,880 2,998,508 Pitney Bowes Inc Services: Business Term Loan B Loan 1M USD LIBOR+ 5.50 % 0.00 % 5.62 % 1/7/2025 2,887,500 2,625,587 2,875,459 See accompanying notes to financial statements. S- 12 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 28, 2021 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value Pixelle Specialty Solutions LLC Forest Products & Paper Term Loan Loan 1M USD LIBOR+ 6.50 % 1.00 % 7.50 % 10/31/2024 3,535,026 3,510,411 3,531,491 Plastipak Holdings Inc. Containers, Packaging & Glass Plastipak Packaging T/L B (04/18) Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.62 % 10/14/2024 2,789,599 2,771,753 2,788,288 Playtika Holding Corp. High Tech Industries Term Loan B (12/19) Loan 6M USD LIBOR+ 6.00 % 1.00 % 7.00 % 12/10/2024 2,837,975 2,793,084 2,850,746 PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan 6M USD LIBOR+ 3.00 % 0.75 % 3.75 % 12/15/2027 500,000 497,597 502,500 Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+ 4.75 % 0.75 % 5.50 % 2/12/2028 5,000,000 4,932,905 4,950,000 PPD, Inc. Healthcare & Pharmaceuticals Term Loan (12/20) Loan 1M USD LIBOR+ 2.25 % 0.50 % 2.75 % 1/13/2028 500,000 497,556 501,530 Pre-Paid Legal Services, Inc. Services: Business Incremental Term Loan Loan 1M USD LIBOR+ 4.00 % 0.75 % 4.75 % 5/1/2025 997,500 983,807 1,001,869 Presidio, Inc. Services: Business Term Loan B (1/20) Loan 3M USD LIBOR+ 3.50 % 0.00 % 3.72 % 1/22/2027 497,500 496,508 498,120 Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan 12M USD LIBOR+ 2.75 % 0.75 % 3.50 % 9/23/2026 3,583,174 3,568,406 3,585,178 Priority Payment Systems LLC High Tech Industries Term Loan Loan 1M USD LIBOR+ 6.50 % 1.00 % 7.50 % 1/3/2023 1,690,068 1,685,378 1,681,615 PriSo Acquisition Corporation Construction & Building Park River Holdings T/L (01/21) Loan 3M USD LIBOR+ 3.25 % 0.75 % 4.00 % 12/28/2027 500,000 497,500 500,535 Project Leopard T/L (Kofax) High Tech Industries Term Loan Loan 3M USD LIBOR+ 5.05 % 1.00 % 5.25 % 7/8/2024 500,000 498,750 500,468 Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 4.00 % 1/29/2025 486,338 484,893 472,961 PUG LLC Services: Consumer Term Loan B (02/20) Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.61 % 2/12/2027 490,025 487,871 475,323 Rackspace Technology Global, Inc. High Tech Industries Rackspace Technology Global T/L B Loan 3M USD LIBOR+ 2.75 % 0.75 % 3.50 % 2/2/2028 500,000 497,527 499,615 Radiology Partners Holdings, LLC Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.37 % 7/4/2025 1,432,727 1,427,557 1,426,466 Ravago Holdings America Chemicals, Plastics, & Rubber Ravago (2/21) T/L Loan 6M USD LIBOR+ 2.50 % 0.00 % 2.75 % 2/9/2028 1,000,000 997,500 999,380 RealPage, Inc. High Tech Industries RealPage T/L (2/21) Loan 1M USD LIBOR+ 3.25 % 0.50 % 3.38 % 2/17/2028 3,000,000 2,992,500 3,001,260 Redstone Buyer, LLC High Tech Industries Term Loan Loan 3M USD LIBOR+ 5.00 % 1.00 % 6.00 % 9/1/2027 997,500 979,386 1,009,141 Renaissance Learning T/L (5/18) Services: Consumer Term Loan Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.36 % 5/30/2025 3,000,000 2,970,900 2,968,740 Rent-A-Center, Inc. Retail Rent-A-Center T/L B (01/21) Loan 1M USD LIBOR+ 4.00 % 0.75 % 4.75 % 1/17/2028 500,000 497,500 503,125 REP WWEX (Worldwide Express) Aquisition Parent, LLC Transportation: Consumer Term Loan B Loan 6M USD LIBOR+ 4.00 % 1.00 % 5.00 % 2/2/2024 1,927,839 1,926,592 1,932,658 Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan 6M USD LIBOR+ 5.50 % 1.00 % 6.50 % 12/20/2024 3,887,330 3,796,436 3,881,499 Resideo Funding Inc. Services: Consumer Resideo Funding T/L (1/21) (Resideo Technologies) Loan 3M USD LIBOR+ 2.25 % 0.50 % 2.75 % 2/11/2028 1,500,000 1,496,250 1,496,250 Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 3M USD LIBOR+ 3.75 % 1.00 % 4.75 % 4/30/2024 2,651,324 2,651,324 2,657,952 Rexnord LLC Capital Equipment Term Loan (11/19) Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.86 % 8/21/2024 862,069 862,069 860,724 Reynolds Consumer Products LLC Containers, Packaging & Glass Reynolds Consumer Products T/L Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.86 % 1/29/2027 1,306,932 1,305,639 1,307,912 Reynolds Group Holdings Inc. Metals & Mining Term Loan B2 Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.36 % 2/5/2026 2,000,000 1,986,099 1,991,660 Robertshaw US Holding Corp. Consumer goods: Durable Term Loan B Loan 1M USD LIBOR+ 3.50 % 1.00 % 4.50 % 2/28/2025 972,500 970,927 916,581 Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.36 % 11/28/2025 2,935,063 2,925,286 2,939,114 RP Crown Parent, LLC High Tech Industries Term Loan B (07/20) Loan 1M USD LIBOR+ 3.00 % 1.00 % 4.00 % 1/31/2026 1,990,000 1,981,157 1,992,488 Russell Investments US Inst'l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 6M USD LIBOR+ 3.00 % 1.00 % 4.00 % 6/2/2025 5,637,965 5,591,015 5,648,565 RV Retailer LLC Automotive RVR Dealership Holdings T/L (RV Retailer) Loan 3M USD LIBOR+ 4.00 % 0.75 % 4.75 % 1/28/2028 2,000,000 1,980,404 1,992,500 Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 3.25 % 0.75 % 4.00 % 9/1/2027 498,750 491,823 499,373 Sally Holdings LLC Retail Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.37 % 7/5/2024 768,409 766,247 768,409 Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan 1M USD LIBOR+ 4.50 % 1.00 % 5.50 % 4/25/2025 995,000 968,936 1,002,463 Savage Enterprises, LLC Energy: Oil & Gas Term Loan B (02/20) Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.12 % 8/1/2025 1,769,504 1,754,769 1,771,999 Schweitzer-Mauduit International, Inc. High Tech Industries Schweitzer-Mauduit T/L B Loan 1M USD LIBOR+ 4.00 % 0.75 % 4.75 % 1/27/2028 1,000,000 990,000 997,500 Seadrill Operating LP (b) Energy: Oil & Gas PIK Revolver Loan 1M USD LIBOR+ 0.00 % 1.00 % 1.00 % 3/31/2021 25,683 25,656 27,224 Seadrill Operating LP (b) Energy: Oil & Gas Term Loan B Loan 1M USD LIBOR+ 8.00 % 1.00 % 9.00 % 3/31/2021 897,442 897,442 86,379 Shutterfly Inc Media: Advertising, Printing & Publishing Term Loan B Loan 3M USD LIBOR+ 6.00 % 1.00 % 7.00 % 9/25/2026 800,968 767,474 803,403 Sirius Computer Solutions, Inc. High Tech Industries Term Loan 1/20 Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.61 % 7/1/2026 1,970,100 1,966,584 1,970,809 See accompanying notes to financial statements. S- 13 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 28, 2021 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 1/23/2025 495,000 495,000 470,869 Sotheby's Services: Business Term Loan (1/21) Loan 3M USD LIBOR+ 4.75 % 0.75 % 5.50 % 1/15/2027 3,289,283 3,230,819 3,312,571 Specialty Pharma III Inc. Services: Business Term Loan Loan 1M USD LIBOR+ 4.50 % 0.75 % 5.25 % 2/24/2028 2,000,000 1,980,000 1,980,000 Spectrum Brands, Inc. Consumer goods: Durable Spectrum Brands T/L (2/21) Loan 1M USD LIBOR+ 2.00 % 0.50 % 2.50 % 2/19/2028 500,000 498,750 501,250 SRAM, LLC Consumer goods: Durable Term Loan Loan 1M USD LIBOR+ 2.75 % 1.00 % 3.75 % 3/15/2024 2,221,329 2,219,239 2,225,505 SS&C Technologies, Inc. Services: Business Term Loan B4 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.86 % 4/16/2025 178,883 178,618 178,212 SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.86 % 4/16/2025 488,567 487,746 486,735 SS&C Technologies, Inc. Services: Business Term Loan B3 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.86 % 4/16/2025 234,915 234,561 234,034 Staples, Inc. Wholesale Term Loan (03/19) Loan 3M USD LIBOR+ 5.00 % 0.00 % 5.21 % 4/16/2026 4,431,567 4,285,772 4,340,853 Stats LLC Hotel, Gaming & Leisure Term Loan Loan 3M USD LIBOR+ 5.25 % 0.00 % 5.45 % 7/10/2026 1,980,000 1,940,067 1,972,575 Storable, Inc High Tech Industries Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.50 % 3.75 % 2/26/2028 500,000 498,750 500,000 Syncsort Incorporated High Tech Industries Term Loan (1/21) Loan 3M USD LIBOR+ 4.75 % 0.75 % 5.50 % 8/16/2024 1,935,450 1,922,522 1,939,476 Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 5.25 % 1.00 % 6.25 % 7/15/2025 2,468,750 2,392,146 2,471,836 Tenneco Inc Capital Equipment Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.11 % 10/1/2025 1,470,000 1,459,901 1,440,233 Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 5.00 % 9/27/2024 1,940,000 1,938,385 1,841,390 The Octave Music Group, Inc (Touchtunes) Services: Business Term Loan B Loan 1M USD LIBOR+ 5.25 % 1.00 % 6.25 % 5/29/2025 3,896,552 3,862,705 3,584,828 Thor Industries, Inc. Automotive Term Loan (USD) Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.88 % 2/1/2026 2,935,080 2,874,260 2,937,839 Tivity Health, Inc. Healthcare & Pharmaceuticals Term Loan A Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.36 % 3/7/2024 558,772 555,085 556,677 Tivity Health, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 5.25 % 0.00 % 5.36 % 3/6/2026 1,064,955 1,044,356 1,060,461 Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD LIBOR+ 3.50 % 0.75 % 4.25 % 8/18/2027 500,000 493,032 501,565 Transdigm, Inc. Aerospace & Defense Term Loan G (02/20) Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.36 % 8/22/2024 4,065,230 4,068,753 4,014,415 Travel Leaders Group, LLC Hotel, Gaming & Leisure Term Loan B (08/18) Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.11 % 1/25/2024 2,437,500 2,435,050 2,268,411 TRC Companies, Inc. Services: Business Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 4.50 % 6/21/2024 3,315,141 3,307,088 3,311,826 TRC Companies, Inc. Services: Business TRC Companies T/L (1/21) Loan 1M USD LIBOR+ 4.50 % 0.75 % 5.25 % 6/21/2024 2,479,433 2,468,047 2,485,631 Trico Group LLC Automotive Term Loan B-3 Loan 3M USD LIBOR+ 7.50 % 1.00 % 8.50 % 2/2/2024 5,070,478 4,962,793 5,150,338 Trident LS Merger Sub Corporation Services: Consumer Term Loan (03/18) Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.36 % 5/1/2025 2,000,000 2,004,987 1,999,500 Truck Hero, Inc. Transportation: Cargo Term Loan (1/21) Loan 1M USD LIBOR+ 3.75 % 0.75 % 4.50 % 1/29/2028 1,500,000 1,500,000 1,501,065 TruGreen Limited Partnership Services: Consumer Term Loan Loan 1M USD LIBOR+ 4.00 % 0.75 % 4.75 % 10/29/2027 973,980 966,347 980,068 Twin River Worldwide Holdings, Inc. Hotel, Gaming & Leisure Term Loan B Loan 3M USD LIBOR+ 2.75 % 0.00 % 3.00 % 5/10/2026 985,000 981,152 975,889 Uber Technologies T/L B (2/21) Transportation: Consumer Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.62 % 7/13/2023 1,989,610 1,941,468 1,992,097 Ultimate Software Group, Inc. (The) High Tech Industries Term Loan 1/21 Loan 3M USD LIBOR+ 3.25 % 0.75 % 4.00 % 5/4/2026 1,000,000 1,000,000 1,005,690 Unimin Corporation Metals & Mining Term Loan (12/20) Loan 3M USD LIBOR+ 4.00 % 1.00 % 5.00 % 7/31/2026 496,815 466,608 476,232 United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.61 % 10/22/2025 1,973,611 1,879,449 1,978,545 United Road Services Inc. Transportation: Cargo Term Loan (10/17) Loan 6M USD LIBOR+ 5.75 % 1.00 % 6.75 % 9/1/2024 952,506 944,697 880,592 Univar Inc. Chemicals, Plastics, & Rubber Term Loan B3 (11/17) Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.36 % 7/1/2024 1,627,723 1,623,316 1,628,602 Univision Communications Inc. Media: Broadcasting & Subscription 2020 Replacement Term Loan Loan 1M USD LIBOR+ 3.75 % 1.00 % 4.75 % 3/13/2026 2,517,037 2,508,528 2,527,433 US Ecology, Inc. Environmental Industries Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 11/2/2026 495,000 494,095 496,445 Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.11 % 1/13/2028 100,000 99,764 100,464 Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan 3M USD LIBOR+ 4.00 % 0.00 % 4.18 % 8/20/2025 1,396,606 1,389,850 1,362,571 VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.11 % 3/1/2026 3,209,493 3,199,747 3,215,526 Virence Intermediate Holdings LLC (Athenahealth / VVC Holding) Healthcare & Pharmaceuticals Athenahealth T/L B (01/21) Loan 3M USD LIBOR+ 4.25 % 0.00 % 4.45 % 2/11/2026 3,965,000 3,935,495 3,986,570 Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 6M USD LIBOR+ 2.25 % 0.75 % 3.00 % 6/3/2024 2,406,176 2,405,891 2,407,692 Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.86 % 12/31/2025 917,338 916,645 913,751 Vizient, Inc Healthcare & Pharmaceuticals Term Loan B-6 Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.11 % 5/6/2026 491,250 490,388 490,430 See accompanying notes to financial statements. S- 14 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 28, 2021 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value VM Consolidated, Inc. Construction & Building Term Loan B1 (02/20) Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.36 % 2/28/2025 475,444 473,957 475,344 Vouvray US Finance LLC High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 4.00 % 3/11/2024 481,250 481,250 417,605 Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G Loan 1M USD LIBOR+ 2.13 % 0.00 % 2.24 % 1/20/2028 250,000 249,702 250,403 Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries Term Loan (3/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 4.50 % 3/15/2025 494,911 492,859 492,436 WeddingWire, Inc. Services: Consumer Term Loan Loan 2M USD LIBOR+ 4.50 % 0.00 % 4.66 % 12/19/2025 3,920,000 3,914,114 3,875,900 West Corporation Telecommunications Term Loan B Loan 1M USD LIBOR+ 3.50 % 1.00 % 4.50 % 10/10/2024 2,931,109 2,874,412 2,866,742 West Corporation Telecommunications Term Loan B (Olympus Merger) Loan 3M USD LIBOR+ 4.00 % 1.00 % 5.00 % 10/10/2024 1,224,748 1,166,274 1,207,062 Western Dental Services, Inc. Retail Term Loan (12/18) Loan 1M USD LIBOR+ 5.25 % 1.00 % 6.25 % 6/30/2023 424,019 424,421 416,598 Western Digital Corporation High Tech Industries Term Loan B-4 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.86 % 4/29/2023 743,135 732,963 742,867 Wirepath LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+ 4.00 % 0.00 % 4.25 % 8/5/2024 2,925,193 2,906,978 2,897,170 WP CITYMD BIDCO LLC Services: Consumer Term Loan B (1/21) Loan 6M USD LIBOR+ 3.75 % 0.75 % 4.50 % 8/13/2026 3,465,000 3,437,657 3,471,791 Xperi Corporation High Tech Industries Term Loan Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.11 % 6/1/2025 2,854,798 2,706,612 2,874,439 Zekelman Industries, Inc. Metals & Mining Term Loan (01/20) Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.11 % 1/25/2027 970,775 970,775 968,551 $ 595,249,474 $ 592,020,041 Number of Shares Cost Fair Value Cash and cash equivalents U.S. Bank Money Market (c) 114,145,406 $ 114,145,406 $ 114,145,406 Total cash and cash equivalents 114,145,406 $ 114,145,406 $ 114,145,406 (a) All or a portion of this investment has an unfunded commitment as of February 28, 2021 (b) As of February 28, 2021, the investment was in default and on non-accrual status. (c) Included within cash and cash equivalents in Saratoga CLO's Statements of Assets and Liabilities as of February 28, 2021. LIBOR—London Interbank Offered Rate 1W USD LIBOR—The 1 week USD LIBOR rate as of February 28, 2021 was 0.09%. 1M USD LIBOR—The 1 month USD LIBOR rate as of February 28, 2021 was 0.12%. 2M USD LIBOR—The 2 month USD LIBOR rate as of February 28, 2021 was 0.15%. 3M USD LIBOR—The 3 month USD LIBOR rate as of February 28, 2021 was 0.19%. 6M USD LIBOR—The 6 month USD LIBOR rate as of February 28, 2021 was 0.20%. 12M USD LIBOR - The 12 month USD LIBOR rate as of February 28, 2021 was 0.28% 3M PL WIBOR - The 3 month PL WIBOR rate as of February 28, 2021, was 0.21% Prime—The Prime Rate as of February 28, 2021 was 3.25%. See accompanying notes to financial statements. S- 15 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 29, 2020 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value Education Management II LLC Services: Consumer Education Management II A-2 Preferred Shares Equity - 0.00 % 0.00 % 0.00 % - 18,975 $ 1,897,538 $ 190 Education Management II LLC Services: Consumer Education Management II A-1 Preferred Shares Equity - 0.00 % 0.00 % 0.00 % - 6,692 669,214 67 1011778 B.C. Unlimited Liability Company Beverage Food & Tobacco Term Loan B4 Loan 1M USD LIBOR+ 1.75 % 0.00 % 3.27 % 11/19/2026 $ 500,000.00 498,790 491,665 24 Hour Fitness Worldwide Inc. Services: Consumer Term Loan (5/18) Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.02 % 5/30/2025 2,959,950 2,949,872 1,943,710 ABB Con-Cise Optical Group LLC Consumer goods: Non-durable Term Loan B Loan 1M USD LIBOR+ 5.00 % 1.00 % 6.52 % 6/15/2023 2,081,927 2,062,239 1,969,149 ADMI Corp. Services: Consumer Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 4.27 % 4/30/2025 1,970,000 1,962,286 1,924,848 Advantage Sales & Marketing Inc. Services: Business First Lien Term Loan Loan 1M USD LIBOR+ 3.25 % 1.00 % 4.77 % 7/23/2021 2,371,131 2,370,010 2,286,173 Advantage Sales & Marketing Inc. Services: Business Term Loan B Incremental Loan 1M USD LIBOR+ 3.25 % 1.00 % 4.77 % 7/23/2021 489,950 485,523 470,352 Advisor Group Holdings Inc Banking Finance Insurance & Real Estate Term Loan (7/19) Loan 1M USD LIBOR+ 5.00 % 0.00 % 6.52 % 7/31/2026 500,000 498,753 486,875 Aegis Toxicology Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 6.96 % 5/9/2025 3,950,000 3,919,494 3,695,225 Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (1/19) Loan 1M USD LIBOR+ 3.00 % 0.00 % 4.52 % 1/5/2026 496,250 496,250 486,325 Agrofresh Inc. Beverage Food & Tobacco Term Loan Loan 1M USD LIBOR+ 4.75 % 1.00 % 6.27 % 7/30/2021 2,889,487 2,886,790 2,677,601 AI Convoy Bidco Limited Aerospace & Defense AI Convoy Bidco T/L B (USD) Loan 3M USD LIBOR+ 3.50 % 1.00 % 4.96 % 1/29/2027 1,500,000 1,492,500 1,483,125 AI Mistral (Luxembourg) Subco Sarl High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 4.52 % 3/11/2024 486,250 486,250 384,138 AIS Holdco LLC Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.00 % 6.46 % 8/15/2025 2,421,875 2,411,617 2,228,125 Alchemy US Holdco 1 LLC Metals & Mining Term Loan Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.02 % 10/10/2025 1,950,000 1,925,236 1,945,125 Alion Science and Technology Corporation Aerospace & Defense Term Loan B (1st Lien) Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.02 % 8/19/2021 3,377,293 3,373,263 3,373,071 Allen Media LLC Media: Advertising Printing & Publishing Allen Media T/L B (1/20) Loan 3M USD LIBOR+ 5.50 % 0.00 % 6.96 % 2/10/2027 3,000,000 2,985,000 2,936,250 Altisource S.a r.l. Banking Finance Insurance & Real Estate Term Loan B (03/18) Loan 3M USD LIBOR+ 4.00 % 1.00 % 5.46 % 4/3/2024 1,454,005 1,446,493 1,353,141 Altra Industrial Motion Corp. Capital Equipment Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 3.52 % 10/1/2025 1,767,163 1,763,366 1,748,943 American Dental Partners Inc. Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+ 4.25 % 1.00 % 5.71 % 3/24/2023 990,000 982,019 982,575 American Greetings Corporation Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.02 % 4/5/2024 4,889,524 4,886,331 4,788,702 American Residential Services LLC Services: Consumer Term Loan B Loan 1M USD LIBOR+ 4.00 % 1.00 % 5.52 % 6/30/2022 3,925,767 3,916,564 3,896,324 AmeriLife Group LLC Banking Finance Insurance & Real Estate AmeriLife T/L Loan 3M USD LIBOR+ 4.00 % 0.00 % 5.46 % 2/5/2027 838,710 836,613 832,419 AmeriLife Group LLC(a) Banking Finance Insurance & Real Estate Unfunded Commitment Loan 3M USD LIBOR+ 4.00 % 0.00 % 4.00 % 2/5/2027 - - - Amex GBT (2/20) T/L Banking Finance Insurance & Real Estate Term Loan Loan 3M USD LIBOR+ 4.00 % 0.00 % 5.46 % 2/26/2027 2,993,363 2,933,496 2,926,012 Amex GBT 2/20 D/T/L(a) Banking Finance Insurance & Real Estate Unfunded Commitment Loan 3M USD LIBOR+ 4.00 % 0.00 % 5.46 % 2/26/2027 - - - Amynta Agency Borrower Inc. Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.02 % 2/28/2025 3,462,357 3,425,731 3,224,320 S- 16 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 29, 2020 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 5.27 % 8/11/2025 987,500 983,508 759,141 Anchor Glass Container Corporation Containers Packaging & Glass Term Loan (07/17) Loan 3M USD LIBOR+ 2.75 % 1.00 % 4.21 % 12/7/2023 485,063 483,537 354,789 Api Group DE Inc Services: Business Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.02 % 10/1/2026 1,000,000 995,123 990,000 APLP Holdings Limited Partnership Utilities APLP Holdings T/L B (Atlantic Power) Loan 1M USD LIBOR+ 2.75 % 1.00 % 4.27 % 4/13/2023 2,000,000 2,000,000 1,977,500 Aramark Services Inc. Services: Consumer Term Loan Loan 1M USD LIBOR+ 1.75 % 0.00 % 3.27 % 1/15/2027 1,500,000 1,498,209 1,484,070 Arctic Glacier U.S.A. Inc. Beverage Food & Tobacco Term Loan (3/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.02 % 3/20/2024 3,350,967 3,332,339 3,225,306 Aretec Group Inc. Banking Finance Insurance & Real Estate Term Loan (10/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 5.77 % 10/1/2025 1,980,000 1,975,743 1,937,093 ASG Technologies Group Inc. High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.02 % 7/31/2024 488,775 487,107 476,556 AssetMark Financial Holdings Inc. Banking Finance Insurance & Real Estate Term Loan Loan 3M USD LIBOR+ 3.00 % 0.00 % 4.46 % 11/14/2025 1,237,500 1,235,582 1,228,219 Astoria Energy LLC Energy: Electricity Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 5.52 % 12/24/2021 1,391,552 1,385,662 1,384,595 Asurion LLC Banking Finance Insurance & Real Estate Term Loan B-4 (Replacement) Loan 1M USD LIBOR+ 3.00 % 0.00 % 4.52 % 8/4/2022 1,876,925 1,872,057 1,853,069 Asurion LLC Banking Finance Insurance & Real Estate Term Loan B6 Loan 1M USD LIBOR+ 3.00 % 0.00 % 4.52 % 11/3/2023 492,773 489,808 485,381 Athenahealth Inc. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.02 % 2/11/2026 1,985,000 1,950,006 1,970,113 Avaya Inc. Telecommunications Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 5.77 % 12/16/2024 3,169,156 3,138,355 3,010,698 Avison Young (Canada) Inc. Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.00 % 6.46 % 1/30/2026 3,476,222 3,418,777 3,406,697 B&G Foods Inc. Beverage Food & Tobacco Term Loan Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.02 % 10/10/2026 249,375 248,169 246,881 Ball Metalpack Finco LLC Containers Packaging & Glass Term Loan Loan 3M USD LIBOR+ 4.50 % 0.00 % 5.96 % 7/31/2025 3,944,937 3,928,266 3,432,096 Bausch Health Companies Inc. Healthcare & Pharmaceuticals Term Loan B (05/18) Loan 1M USD LIBOR+ 3.00 % 0.00 % 4.52 % 6/2/2025 25,355 25,274 25,161 Berry Global Inc. Chemicals Plastics & Rubber Term Loan Y Loan 1M USD LIBOR+ 2.00 % 0.00 % 3.52 % 7/1/2026 4,987,500 4,981,754 4,897,974 Blount International Inc. Forest Products & Paper Term Loan B (09/18) Loan 1M USD LIBOR+ 3.75 % 1.00 % 5.27 % 4/12/2023 3,453,781 3,450,952 3,432,195 Blucora Inc. Services: Consumer Term Loan (11/17) Loan 2M USD LIBOR+ 3.00 % 1.00 % 4.50 % 5/22/2024 955,900 953,639 946,341 Bombardier Recreational Products Inc. Consumer goods: Durable Term Loan (1/20) Loan 1M USD LIBOR+ 2.00 % 0.00 % 3.52 % 5/24/2027 995,000 985,847 978,214 Boxer Parent Company Inc. Services: Business Term Loan Loan 1M USD LIBOR+ 4.25 % 0.00 % 5.77 % 10/2/2025 2,475,000 2,454,363 2,374,070 Bracket Intermediate Holding Corp. Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 5.71 % 9/5/2025 987,500 983,437 987,500 Broadstreet Partners Inc. Banking Finance Insurance & Real Estate Term Loan B3 Loan 1M USD LIBOR+ 3.25 % 0.00 % 4.77 % 1/27/2027 2,024,614 2,022,736 2,002,687 Brookfield WEC Holdings Inc. Energy: Electricity Term Loan 1/20 Loan 1M USD LIBOR+ 3.00 % 0.75 % 4.52 % 8/1/2025 497,487 496,370 488,627 Buckeye Partners L.P. Utilities: Oil & Gas Term Loan Loan 1M USD LIBOR+ 2.75 % 0.00 % 4.27 % 11/2/2026 1,000,000 995,334 989,170 S- 17 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 29, 2020 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value BW Gas & Convenience Holdings LLC Beverage Food & Tobacco Term Loan Loan 1M USD LIBOR+ 6.25 % 0.00 % 7.77 % 11/18/2024 3,000,000 2,884,283 2,992,500 Calceus Acquisition Inc. Consumer goods: Non-durable Term Loan B Loan 1M USD LIBOR+ 5.50 % 0.00 % 7.02 % 2/12/2025 975,000 964,353 964,031 Callaway Golf Company Retail Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.02 % 1/2/2026 697,500 684,758 696,196 CareerBuilder LLC Services: Business Term Loan Loan 1M USD LIBOR+ 6.75 % 1.00 % 8.27 % 7/31/2023 2,266,211 2,232,341 2,223,720 CareStream Health Inc. High Tech Industries Term Loan Loan 1M USD LIBOR+ 6.25 % 1.00 % 7.77 % 2/28/2021 2,362,278 2,356,691 2,263,062 Casa Systems Inc. Telecommunications Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 5.52 % 12/20/2023 1,455,000 1,446,052 1,236,750 Castle US Holding Corporation High Tech Industries Term Loan B (USD) Loan 1M USD LIBOR+ 3.75 % 0.00 % 5.27 % 1/27/2027 500,000 497,509 475,000 CCS-CMGC Holdings Inc. Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 5.50 % 0.00 % 6.96 % 10/1/2025 2,475,000 2,453,876 2,338,875 Cengage Learning Inc. Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 5.77 % 6/7/2023 1,447,458 1,435,195 1,329,447 CenturyLink Inc. Telecommunications Term Loan B (1/20) Loan 1M USD LIBOR+ 2.25 % 0.00 % 3.77 % 3/15/2027 3,000,000 2,996,438 2,922,180 Citadel Securities LP Banking Finance Insurance & Real Estate Term Loan (2/20) Loan 1M USD LIBOR+ 2.75 % 0.00 % 4.27 % 2/27/2026 992,500 991,371 983,816 Clarios Global LP Automotive Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.02 % 4/30/2026 1,496,250 1,482,216 1,451,991 Compass Power Generation L.L.C. Utilities: Electric Term Loan B (08/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.02 % 12/20/2024 1,891,221 1,886,758 1,855,761 Compuware Corporation High Tech Industries Term Loan (08/18) Loan 1M USD LIBOR+ 4.00 % 0.00 % 5.52 % 8/22/2025 495,000 493,979 493,763 Concordia International Corp. Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 6.96 % 9/6/2024 1,183,650 1,131,380 1,088,224 Connect U.S. Finco LLC Telecommunications Delayed Draw Term Loan B Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.02 % 12/11/2026 2,000,000 1,984,055 1,980,000 Consolidated Communications Inc. Telecommunications Term Loan B Loan 1M USD LIBOR+ 3.00 % 1.00 % 4.52 % 10/5/2023 1,475,404 1,464,720 1,395,481 Coral-US Co-Borrower LLC Telecommunications Term Loan B-5 Loan 1M USD LIBOR+ 2.25 % 0.00 % 3.77 % 1/31/2028 2,000,000 2,000,000 1,976,660 Covia Holdings Corporation Metals & Mining Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 5.46 % 6/2/2025 985,000 985,000 711,663 CPI Acquisition Inc Banking Finance Insurance & Real Estate Term Loan B (1st Lien) Loan 6M USD LIBOR+ 4.50 % 1.00 % 5.90 % 8/17/2022 1,436,782 1,427,762 1,089,957 Crown Subsea Communications Holding Inc Construction & Building Term Loan Loan 1M USD LIBOR+ 6.00 % 0.00 % 7.52 % 11/3/2025 1,655,837 1,640,398 1,649,627 CSC Holdings LLC Media: Broadcasting & Subscription Term Loan B (03/17) Loan 1M USD LIBOR+ 2.25 % 0.00 % 3.77 % 7/17/2025 1,974,620 1,952,260 1,941,308 CSC Holdings LLC Media: Broadcasting & Subscription Term Loan B-5 Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.02 % 4/15/2027 500,000 500,000 492,500 CSC Holdings LLC Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 3.77 % 1/15/2026 495,000 493,968 486,031 Cushman & Wakefield U.S. Borrower LLC Construction & Building Term Loan Loan 1M USD LIBOR+ 2.75 % 0.00 % 4.27 % 8/21/2025 3,945,050 3,928,487 3,874,789 Daseke Companies Inc. Transportation: Cargo Replacement Term Loan Loan 1M USD LIBOR+ 5.00 % 1.00 % 6.52 % 2/27/2024 1,955,694 1,946,628 1,867,688 DaVita Inc. High Tech Industries Term Loan B-1 Loan 1M USD LIBOR+ 1.75 % 0.00 % 3.27 % 8/12/2026 997,500 995,133 985,859 Dealer Tire LLC Automotive Dealer Tire T/L B-1 Loan 1M USD LIBOR+ 4.25 % 0.00 % 5.77 % 12/12/2025 3,000,000 2,992,500 2,977,500 S- 18 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 29, 2020 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value Delek US Holdings Inc. Utilities: Oil & Gas Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 3.77 % 3/31/2025 6,446,003 6,379,073 6,317,083 Dell International L.L.C. High Tech Industries Term Loan B-1 Loan 1M USD LIBOR+ 2.00 % 0.75 % 3.52 % 9/19/2025 3,814,430 3,809,967 3,766,292 Delta 2 (Lux) SARL Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.02 % 2/1/2024 1,318,289 1,315,922 1,275,445 DHX Media Ltd. Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 4.25 % 1.00 % 5.77 % 12/29/2023 279,282 278,012 267,413 Diamond Sports Group LLC Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 3.25 % 0.00 % 4.77 % 8/24/2026 997,500 992,773 907,725 Digital Room Holdings Inc. Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 5.00 % 0.00 % 6.52 % 5/21/2026 2,985,000 2,944,957 2,790,975 Dole Food Company Inc. Beverage Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 2.75 % 1.00 % 4.27 % 4/8/2024 468,750 467,304 461,522 DRW Holdings LLC Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 5.77 % 11/27/2026 5,000,000 4,950,804 4,962,500 DynCorp International Inc. Aerospace & Defense Term Loan B Loan 1M USD LIBOR+ 6.00 % 1.00 % 7.52 % 8/18/2025 2,962,500 2,879,096 2,925,469 Eagletree-Carbide Acquisition Corp. Consumer goods: Durable Term Loan Loan 3M USD LIBOR+ 4.25 % 1.00 % 5.71 % 8/28/2024 4,927,385 4,901,606 4,804,200 EIG Investors Corp. High Tech Industries Term Loan (06/18) Loan 3M USD LIBOR+ 3.75 % 1.00 % 5.21 % 2/9/2023 2,199,416 2,186,449 2,160,926 Encapsys LLC Chemicals Plastics & Rubber Term Loan B2 Loan 1M USD LIBOR+ 3.25 % 1.00 % 4.77 % 11/7/2024 497,428 492,831 491,832 Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan B (4/17) Loan 1M USD LIBOR+ 4.25 % 0.75 % 5.77 % 4/29/2024 3,937,025 3,914,795 3,766,985 Energy Acquisition LP Capital Equipment Term Loan (6/18) Loan 3M USD LIBOR+ 4.25 % 0.00 % 5.71 % 6/26/2025 1,970,000 1,957,901 1,811,179 Envision Healthcare Corporation Healthcare & Pharmaceuticals Term Loan B (06/18) Loan 1M USD LIBOR+ 3.75 % 0.00 % 5.27 % 10/10/2025 4,950,000 4,939,709 3,966,188 EyeCare Partners LLC Healthcare & Pharmaceuticals EyeCare Partners T/L B Loan 1M USD LIBOR+ 3.75 % 0.00 % 5.27 % 2/5/2027 1,621,622 1,619,618 1,583,789 EyeCare Partners LLC(a) Healthcare & Pharmaceuticals EyeCare Partners Delayed Draw Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 5.27 % 2/5/2027 - - - FinCo I LLC Banking Finance Insurance & Real Estate 2018 Term Loan B Loan 1M USD LIBOR+ 2.00 % 0.00 % 3.52 % 12/27/2022 360,538 359,905 356,752 First Eagle Holdings Inc. Banking Finance Insurance & Real Estate Refinancing Term Loan Loan 3M USD LIBOR+ 2.50 % 0.00 % 3.96 % 2/1/2027 5,450,000 5,426,720 5,338,275 Fitness International LLC Services: Consumer Term Loan B (4/18) Loan 1M USD LIBOR+ 3.25 % 0.00 % 4.77 % 4/18/2025 1,330,058 1,322,900 1,312,103 Franklin Square Holdings L.P. Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 2.25 % 0.00 % 3.77 % 8/1/2025 4,443,748 4,414,007 4,421,530 Froneri International Ltd Beverage Food & Tobacco Term Loan B-2 Loan 1M USD LIBOR+ 2.25 % 0.00 % 3.77 % 1/29/2027 2,000,000 1,995,162 1,962,500 Fusion Connect Inc. Telecommunications Exit Term Loan (1/20) Loan 3M USD LIBOR+ 9.50 % 2.00 % 11.50 % 1/14/2025 1,500,000 1,470,716 1,495,005 Fusion Connect Inc. Telecommunications Take Back 2nd Out Term Loan Loan 6M USD LIBOR+ 8.00 % 2.00 % 10.00 % 7/14/2025 757,724 737,560 527,883 GBT Group Services B.V. Hotel Gaming & Leisure Term Loan Loan 3M USD LIBOR+ 2.50 % 0.00 % 3.96 % 8/13/2025 4,443,750 4,442,729 4,410,422 GC EOS Buyer Inc. Automotive Term Loan B (06/18) Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.02 % 8/1/2025 2,962,500 2,940,820 2,888,438 General Nutrition Centers Inc. Retail Term Loan B2 Loan 3M USD LIBOR+ 8.75 % 0.75 % 10.21 % 3/4/2021 930,446 929,986 856,010 S- 19 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 29, 2020 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value General Nutrition Centers Inc. Retail FILO Term Loan Loan 1M USD LIBOR+ 7.00 % 0.00 % 8.52 % 1/3/2023 585,849 584,748 583,505 Genesee & Wyoming Inc. Transportation: Cargo Term Loan (11/19) Loan 3M USD LIBOR+ 2.00 % 0.00 % 3.46 % 12/30/2026 1,500,000 1,492,771 1,489,380 GEO Group Inc. The Banking Finance Insurance & Real Estate Term Loan Refinance Loan 1M USD LIBOR+ 2.00 % 0.75 % 3.52 % 3/25/2024 2,000,000 1,911,214 1,846,260 GI Chill Acquisition LLC Services: Business Term Loan Loan 3M USD LIBOR+ 4.00 % 0.00 % 5.46 % 8/6/2025 2,468,750 2,458,492 2,450,234 GI Revelation Acquisition LLC Services: Business Term Loan Loan 1M USD LIBOR+ 5.00 % 0.00 % 6.52 % 4/16/2025 1,231,867 1,226,730 1,155,652 Gigamon Inc. Services: Business Term Loan B Loan 1M USD LIBOR+ 4.25 % 1.00 % 5.77 % 12/27/2024 2,960,000 2,937,550 2,952,600 Global Tel*Link Corporation Telecommunications Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 5.77 % 11/28/2025 3,039,750 3,039,750 2,886,668 Go Wireless Inc. Telecommunications Term Loan Loan 1M USD LIBOR+ 6.50 % 1.00 % 8.02 % 12/22/2024 3,202,597 3,161,265 3,005,093 Goodyear Tire & Rubber Company The Chemicals Plastics & Rubber Second Lien Term Loan Loan 1M USD LIBOR+ 2.00 % 0.00 % 3.52 % 3/7/2025 2,000,000 2,000,000 1,950,000 Greenhill & Co. Inc. Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.00 % 4.77 % 4/12/2024 3,661,538 3,624,459 3,644,769 Grosvenor Capital Management Holdings LLLP Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.75 % 1.00 % 4.27 % 3/28/2025 898,530 894,831 898,530 Guidehouse LLP Aerospace & Defense Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.02 % 5/1/2025 3,964,937 3,941,954 3,895,550 Harland Clarke Holdings Corp. Media: Advertising Printing & Publishing Term Loan Loan 3M USD LIBOR+ 4.75 % 1.00 % 6.21 % 11/3/2023 1,723,072 1,715,720 1,356,919 HD Supply Waterworks Ltd. Construction & Building Term Loan Loan 3M USD LIBOR+ 2.75 % 1.00 % 4.21 % 8/1/2024 488,750 487,883 481,419 Helix Acquisition Holdings Inc. Capital Equipment Term Loan (2019 Incremental) Loan 3M USD LIBOR+ 3.75 % 0.00 % 5.21 % 9/30/2024 2,977,500 2,925,219 2,754,188 Helix Gen Funding LLC Energy: Electricity Term Loan B (02/17) Loan 1M USD LIBOR+ 3.75 % 1.00 % 5.27 % 6/3/2024 264,030 263,694 253,799 HLF Financing SaRL LLC Consumer goods: Non-durable Term Loan B (08/18) Loan 1M USD LIBOR+ 2.75 % 0.00 % 4.27 % 8/18/2025 3,950,000 3,935,111 3,883,364 Holley Purchaser Inc. Automotive Term Loan B Loan 3M USD LIBOR+ 5.00 % 0.00 % 6.46 % 10/24/2025 2,475,000 2,454,070 2,301,750 Hudson River Trading LLC Banking Finance Insurance & Real Estate Term Loan B (01/20) Loan 1M USD LIBOR+ 3.00 % 0.00 % 4.52 % 2/18/2027 6,000,000 5,975,621 5,955,000 Hyperion Refinance S.a.r.l. Banking Finance Insurance & Real Estate Tem Loan (12/17) Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.02 % 12/20/2024 1,709,781 1,701,824 1,691,623 ICH US Intermediate Holdings II Inc. Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+ 5.75 % 1.00 % 7.21 % 12/24/2026 5,000,000 4,803,288 4,875,000 Idera Inc. High Tech Industries Term Loan B Loan 1M USD LIBOR+ 4.00 % 1.00 % 5.52 % 6/28/2024 2,939,742 2,919,274 2,917,694 Informatica LLC High Tech Industries Term Loan B (02/20) Loan 1M USD LIBOR+ 3.25 % 0.00 % 4.77 % 2/25/2027 500,000 497,500 489,375 Inmar Inc. Services: Business Term Loan B Loan 3M USD LIBOR+ 4.00 % 1.00 % 5.46 % 5/1/2024 3,457,043 3,377,774 3,320,939 Innophos Holdings Inc Chemicals Plastics & Rubber Term Loan B Loan 1M USD LIBOR+ 3.75 % 0.00 % 5.27 % 2/4/2027 500,000 497,521 496,250 ION Media Networks Inc. Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.00 % 4.52 % 12/18/2024 997,500 992,818 982,538 Isagenix International LLC Beverage Food & Tobacco Term Loan Loan 3M USD LIBOR+ 5.75 % 1.00 % 7.21 % 6/16/2025 2,796,876 2,750,718 1,118,750 Jefferies Finance LLC / JFIN Co-Issuer Corp Banking Finance Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 3.25 % 0.00 % 4.77 % 6/3/2026 3,229,359 3,211,489 3,172,846 S- 20 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 29, 2020 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value Jill Holdings LLC Retail Term Loan (1st Lien) Loan 3M USD LIBOR+ 5.00 % 1.00 % 6.46 % 5/9/2022 1,800,290 1,796,697 1,458,235 JP Intermediate B LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 6.96 % 11/20/2025 4,687,500 4,640,380 2,499,984 KAR Auction Services Inc. Automotive Term Loan B (09/19) Loan 1M USD LIBOR+ 2.25 % 0.00 % 3.77 % 9/19/2026 249,375 248,789 247,505 Kindred Healthcare Inc. Healthcare & Pharmaceuticals Kindred Healthcare T/L (6/18) Loan 1M USD LIBOR+ 5.00 % 0.00 % 6.52 % 7/2/2025 2,000,000 1,980,000 1,975,000 Lakeland Tours LLC Hotel Gaming & Leisure Term Loan B Loan 3M USD LIBOR+ 4.25 % 1.00 % 5.71 % 12/16/2024 2,457,482 2,450,618 2,248,596 Lannett Company Inc. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 5.38 % 1.00 % 6.89 % 11/25/2022 2,379,293 2,356,101 2,343,175 Learfield Communications LLC Media: Advertising Printing & Publishing Initial Term Loan (A-L Parent) Loan 1M USD LIBOR+ 3.25 % 1.00 % 4.77 % 12/1/2023 485,000 483,577 439,531 Lifetime Brands Inc. Consumer goods: Non-durable Term Loan B Loan 1M USD LIBOR+ 3.50 % 1.00 % 5.02 % 2/28/2025 2,992,386 2,955,090 2,857,728 Lighthouse Network LLC Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.02 % 12/2/2024 4,129,092 4,115,428 4,123,930 Lightstone Holdco LLC Energy: Electricity Term Loan B Loan 1M USD LIBOR+ 3.75 % 1.00 % 5.27 % 1/30/2024 1,322,520 1,320,692 1,164,651 Lightstone Holdco LLC Energy: Electricity Term Loan C Loan 1M USD LIBOR+ 3.75 % 1.00 % 5.27 % 1/30/2024 74,592 74,493 65,688 Lindblad Expeditions Inc. Hotel Gaming & Leisure US 2018 Term Loan Loan 1M USD LIBOR+ 3.25 % 0.00 % 4.77 % 3/27/2025 394,000 393,227 390,060 Lindblad Expeditions Inc. Hotel Gaming & Leisure Cayman Term Loan Loan 1M USD LIBOR+ 3.25 % 0.00 % 4.77 % 3/27/2025 98,500 98,307 97,515 Liquidnet Holdings Inc. Banking Finance Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.25 % 1.00 % 4.77 % 7/15/2024 2,131,268 2,126,212 2,093,970 LPL Holdings Inc. Banking Finance Insurance & Real Estate Term Loan B1 Loan 1M USD LIBOR+ 1.75 % 0.00 % 3.27 % 11/11/2026 1,245,213 1,242,233 1,243,133 Marriott Ownership Resorts Inc. Hotel Gaming & Leisure Term Loan (11/19) Loan 1M USD LIBOR+ 1.75 % 0.00 % 3.27 % 3/12/2026 1,500,000 1,500,000 1,432,500 Match Group Inc. Services: Consumer Term Loan (1/20) Loan 3M USD LIBOR+ 1.75 % 0.00 % 3.21 % 2/5/2027 250,000 249,377 248,438 McAfee LLC Services: Business Term Loan B Loan 1M USD LIBOR+ 3.75 % 0.00 % 5.27 % 9/30/2024 3,159,418 3,131,317 3,136,165 McDermott International (Americas) Inc.(b) Construction & Building Term Loan B Loan 3M USD LIBOR+ 5.00 % 1.00 % 6.46 % 5/12/2025 1,965,000 1,933,938 1,126,928 McGraw-Hill Global Education Holdings LLC Media: Advertising Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 5.52 % 5/4/2022 956,813 954,867 897,807 Meredith Corporation Media: Advertising Printing & Publishing Term Loan B2 Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.02 % 1/31/2025 578,738 577,724 572,227 Messer Industries GMBH Chemicals Plastics & Rubber Term Loan B Loan 3M USD LIBOR+ 2.50 % 0.00 % 3.96 % 3/2/2026 2,977,500 2,970,753 2,917,950 Michaels Stores Inc. Retail Term Loan B Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.02 % 1/30/2023 2,599,163 2,590,493 2,393,387 Midwest Physician Administrative Services LLC Healthcare & Pharmaceuticals Term Loan (2/18) Loan 1M USD LIBOR+ 2.75 % 0.75 % 4.27 % 8/15/2024 970,910 967,282 951,492 Milk Specialties Company Beverage Food & Tobacco Term Loan (2/17) Loan 1M USD LIBOR+ 4.00 % 1.00 % 5.52 % 8/16/2023 3,899,905 3,848,164 3,696,798 MKS Instruments Inc. High Tech Industries Term Loan B6 Loan 1M USD LIBOR+ 1.75 % 0.00 % 3.27 % 2/2/2026 887,425 879,526 875,001 MLN US HoldCo LLC Telecommunications Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 6.02 % 11/28/2025 990,000 988,165 932,144 S- 21 Saratoga Investment Corp. CLO 2013-1 Ltd. Schedule of Investments February 29, 2020 Issuer Name Industry Asset Name Asset Type Reference Rate/Spread LIBOR Floor Current Rate (All In) Maturity Date Principal/ Number of Shares Cost Fair Value MRC Global (US) Inc. Metals & Mining Term Loan B2 Loan 1M USD LIBOR+ 3.00 % 0.00 % 4.52 % 9/20/2024 490,000 489,047 477,750 NAI Entertainment Holdings LLC Hotel Gaming & Leisure Term Loan B Loan 1M USD LIBOR+ 2.50 % 1.00 % 4.02 % 5/8/2025 870,833 869,104 855,594 Natgasoline LLC Chemicals Plastics & Rubber Term Loan Loan 6M USD LIBOR+ 3.50 % 0.00 % 4.90 % 11/14/2025 495,000 492,907 491,288 National Mentor Holdings Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 4.00 % 0.00 % 5.52 % 3/9/2026 1,881,215 1,864,059 1,871,809 National Mentor Holdings Inc. Healthcare & Pharmaceuticals Term Loan C Loan 1M USD LIBOR+ 4.00 % 0.00 % 5.52 % 3/9/2026 104,662 103,730 104,139 NeuStar Inc. Telecommunications Term Lo