SARATOGA INVESTMENT CORP. 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended August 31, 2022 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File No. 814-00732 SARATOGA INVESTMENT CORP. (Exact name of registrant as specified in its charter) Maryland 20-8700615 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 535 Madison Avenue New York , New York 10022 (Address of principal executive offices) (212) 906-7800 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.001 per share SAR The New York Stock Exchange 6.00% Notes due 2027 SAT The New York Stock Exchange Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ The number of outstanding common shares of the registrant as of October 4, 2022 was 11,900,212 . TABLE OF CONTENTS Page PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements 1 Consolidated Statements of Assets and Liabilities as of August 31, 2022 (unaudited) and February 28, 2022 1 Consolidated Statements of Operations for the three and six months ended August 31, 2022 (unaudited) and August 31, 2021 (unaudited) 2 Consolidated Statements of Changes in Net Assets for three and six months ended August 31, 2022 (unaudited) and August 31, 2021 (unaudited) 3 Consolidated Statements of Cash Flows for the six months ended August 31, 2022 (unaudited) and August 31, 2021 (unaudited) 4 Consolidated Schedules of Investments as of August 31, 2022 (unaudited) and February 28, 202 2 5 Notes to Consolidated Financial Statements as of August 31, 2022 (unaudited) 19 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 86 Item 3. Quantitative and Qualitative Disclosures About Market Risk 125 Item 4. Controls and Procedures 126 PART II. OTHER INFORMATION 127 Item 1. Legal Proceedings 127 Item 1A. Risk Factors 127 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 127 Item 3. Defaults Upon Senior Securities 127 Item 4. Mine Safety Disclosures 127 Item 5. Other Information 127 Item 6. Exhibits 128 Signatures 130 i PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Saratoga Investment Corp. Consolidated Statements of Assets and Liabilities (unaudited) August 31, 2022 February 28, 2022 (unaudited) ASSETS Investments at fair value Non-control/Non-affiliate investments (amortized cost of $ 776,527,328 and $ 654,965,044 , respectively) $ 775,408,041 $ 668,358,516 Affiliate investments (amortized cost of $ 80,445,967 and $ 46,224,927 , respectively) 85,623,204 48,234,124 Control investments (amortized cost of $ 98,963,250 and $ 95,058,356 , respectively) 93,632,423 100,974,715 Total investments at fair value (amortized cost of $ 955,936,545 and $ 796,248,327 , respectively) 954,663,668 817,567,355 Cash and cash equivalents 3,068,165 47,257,801 Cash and cash equivalents, reserve accounts 9,579,226 5,612,541 Interest receivable (net of reserve of $ 1,181,633 and $ 0 , respectively) 5,019,691 5,093,561 Due from affiliate (See Note 7) 17,670 90,968 Management fee receivable 363,552 362,549 Other assets 255,445 254,980 Current Tax Receivable 64,638 - Total assets $ 973,032,055 $ 876,239,755 LIABILITIES Revolving credit facility $ 25,000,000 $ 12,500,000 Deferred debt financing costs, revolving credit facility ( 960,415 ) ( 1,191,115 ) SBA debentures payable 233,660,000 185,000,000 Deferred debt financing costs, SBA debentures payable ( 5,259,305 ) ( 4,344,983 ) 7.25% Notes Payable 2025 - 43,125,000 Deferred debt financing costs, 7.25 % notes payable 2025 - ( 1,078,201 ) 7.75% Notes Payable 2025 5,000,000 5,000,000 Deferred debt financing costs, 7.75 % notes payable 2025 ( 156,726 ) ( 184,375 ) 4.375% Notes Payable 2026 175,000,000 175,000,000 Premium on 4.375 % notes payable 2026 979,272 1,086,013 Deferred debt financing costs, 4.375 % notes payable 2026 ( 2,970,717 ) ( 3,395,435 ) 4.35% Notes Payable 2027 75,000,000 75,000,000 Discount on 4.35 % notes payable 2027 ( 441,527 ) ( 499,263 ) Deferred debt financing costs, 4.35 % notes payable 2027 ( 1,549,296 ) ( 1,722,908 ) 6.25% Notes Payable 2027 15,000,000 15,000,000 Deferred debt financing costs, 6.25 % notes payable 2027 ( 380,308 ) ( 416,253 ) 6.00% Notes Payable 2027 105,500,000 - Discount on 6.00% notes payable 2027 ( 174,486 ) - Deferred debt financing costs, 6.00 % notes payable 2027 ( 3,227,625 ) - Base management and incentive fees payable 9,529,363 12,947,025 Deferred tax liability 1,710,315 1,249,015 Accounts payable and accrued expenses 1,188,574 799,058 Current income tax payable - 2,820,036 Interest and debt fees payable 3,073,477 2,801,621 Directors fees payable 108,932 70,000 Due to manager 189,252 263,814 Excise tax payable - 630,183 Total liabilities 635,818,780 520,459,232 Commitments and contingencies (See Note 9) NET ASSETS Common stock, par value $ 0.001 , 100,000,000 common shares authorized, 11,927,238 and 12,131,350 common shares issued and outstanding, respectively 11,927 12,131 Capital in excess of par value 322,832,986 328,062,246 Total distributable earnings (deficit) 14,368,362 27,706,146 Total net assets 337,213,275 355,780,523 Total liabilities and net assets $ 973,032,055 $ 876,239,755 NET ASSET VALUE PER SHARE $ 28.27 $ 29.33 See accompanying notes to consolidated financial statements. 1 Saratoga Investment Corp. Consolidated Statements of Operations (unaudited) For the three months ended For the six months ended August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 INVESTMENT INCOME Interest from investments Interest income: Non-control/Non-affiliate investments $ 16,197,470 $ 11,298,024 $ 30,048,616 $ 22,534,761 Affiliate investments 1,322,501 936,508 2,372,649 1,277,020 Control investments 1,513,666 2,059,101 3,059,796 3,914,086 Payment-in-kind interest income: Non-control/Non-affiliate investments 85,746 710,329 171,427 887,095 Affiliate investments 29,167 - 29,167 - Control investments 84,220 109,971 157,441 187,646 Total interest from investments 19,232,770 15,113,933 35,839,096 28,800,608 Interest from cash and cash equivalents 34,435 1,071 35,152 1,593 Management fee income 817,024 814,622 1,632,988 1,632,854 Dividend Income* 212,688 658,881 512,817 1,057,498 Structuring and advisory fee income 1,408,086 1,038,250 2,259,814 2,340,125 Other income* 147,843 814,926 252,111 1,424,995 Total investment income 21,852,846 18,441,683 40,531,978 35,257,673 OPERATING EXPENSES Interest and debt financing expenses 7,922,025 5,184,184 14,793,538 9,525,096 Base management fees 4,104,105 3,002,097 7,906,168 5,761,005 Incentive management fees expense (benefit) 589,840 2,018,163 ( 1,314,145 ) 7,280,699 Professional fees 368,165 460,753 785,490 967,814 Administrator expenses 772,917 712,500 1,522,917 1,406,250 Insurance 90,226 86,318 177,536 172,636 Directors fees and expenses 110,000 100,500 220,000 192,500 General and administrative 299,445 453,225 966,861 943,876 Income tax expense (benefit) ( 101,891 ) 30,682 ( 200,623 ) 58,601 Total operating expenses 14,154,832 12,048,422 24,857,742 26,308,477 NET INVESTMENT INCOME 7,698,014 6,393,261 15,674,236 8,949,196 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) from investments: Non-control/Non-affiliate investments 7,943,838 1,641,462 8,106,347 3,551,605 Control investments - ( 139,867 ) - ( 139,867 ) Net realized gain (loss) from investments 7,943,838 1,501,595 8,106,347 3,411,738 Income tax (provision) benefit from realized gain on investments - ( 448,883 ) 69,250 ( 448,883 ) Net change in unrealized appreciation (depreciation) on investments: Non-control/Non-affiliate investments ( 13,878,470 ) 2,256,932 ( 14,512,759 ) 8,772,357 Affiliate investments 2,600,434 2,681,640 3,168,040 4,677,451 Control investments ( 1,980,420 ) ( 1,562,033 ) ( 11,247,186 ) 6,739,309 Net change in unrealized appreciation (depreciation) on investments ( 13,258,456 ) 3,376,539 ( 22,591,905 ) 20,189,117 Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments ( 230,154 ) ( 1,328,711 ) ( 592,105 ) ( 1,558,855 ) Net realized and unrealized gain (loss) on investments ( 5,544,772 ) 3,100,540 ( 15,008,413 ) 21,593,117 Realized losses on extinguishment of debt ( 1,204,809 ) ( 1,552,140 ) ( 1,204,809 ) ( 1,552,140 ) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 948,433 $ 7,941,661 $ ( 538,986 ) $ 28,990,173 WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE $ 0.08 $ 0.71 $ ( 0.04 ) $ 2.59 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED 11,963,276 11,175,436 12,037,855 11,172,787 * Certain prior period amounts have been reclassified to conform to current period presentation. See accompanying notes to consolidated financial statements. 2 Saratoga Investment Corp. Consolidated Statements of Changes in Net Assets (unaudited) For the six months ended August 31, 2022 August 31, 2021 INCREASE (DECREASE) FROM OPERATIONS: Net investment income $ 15,674,236 $ 8,949,196 Net realized gain from investments 8,106,347 3,411,738 Realized losses on extinguishment of debt ( 1,204,809 ) ( 1,552,140 ) Income tax (provision) benefit from realized gain on investments 69,250 ( 448,883 ) Net change in unrealized appreciation (depreciation) on investments ( 22,591,905 ) 20,189,117 Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments ( 592,105 ) ( 1,558,855 ) Net increase (decrease) in net assets resulting from operations ( 538,986 ) 28,990,173 DECREASE FROM SHAREHOLDER DISTRIBUTIONS: Total distributions to shareholders ( 12,798,798 ) ( 9,709,800 ) Net decrease in net assets from shareholder distributions ( 12,798,798 ) ( 9,709,800 ) CAPITAL SHARE TRANSACTIONS: Proceeds from issuance of common stock - 157,040 Stock dividend distribution 2,196,868 1,742,614 Repurchases of common stock ( 7,420,421 ) ( 1,252,143 ) Repurchase fees ( 5,911 ) ( 992 ) Offering costs - ( 817 ) Net increase (decrease) in net assets from capital share transactions ( 5,229,464 ) 645,702 Total increase (decrease) in net assets ( 18,567,248 ) 19,926,075 Net assets at beginning of period 355,780,523 304,185,770 Net assets at end of period $ 337,213,275 $ 324,111,845 See accompanying notes to consolidated financial statements. 3 Saratoga Investment Corp. Consolidated Statements of Cash Flows (unaudited) For the six months ended August 31, 2022 August 31, 2021 Operating activities NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ ( 538,986 ) $ 28,990,173 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 1,594,054 ( 1,905,423 ) Net accretion of discount on investments ( 833,939 ) ( 884,936 ) Amortization of deferred debt financing costs 1,674,315 1,023,062 Realized losses on extinguishment of debt 1,204,809 1,552,140 Income tax expense (benefit) ( 269,873 ) 30,964 Net realized (gain) loss from investments ( 8,106,347 ) ( 3,411,738 ) Net change in unrealized (appreciation) depreciation on investments 22,591,905 ( 20,189,117 ) Net change in provision for deferred taxes on unrealized appreciation (depreciation) on investments 592,105 1,558,855 Proceeds from sales and repayments of investments 105,173,099 149,787,188 Purchases of investments ( 257,515,083 ) ( 235,180,617 ) (Increase) decrease in operating assets: Interest receivable 73,870 ( 891,097 ) Due from affiliate 73,298 2,719,000 Management and incentive fee receivable ( 1,003 ) ( 329,730 ) Tax receivable 64,638 - Other assets ( 465 ) ( 60,140 ) Increase (decrease) in operating liabilities: Base management and incentive fees payable ( 3,417,662 ) 4,868,310 Accounts payable and accrued expenses 389,516 1,010,580 Current tax payable ( 2,820,036 ) - Interest and debt fees payable 271,856 ( 177,519 ) Directors fees payable 38,932 ( 70,500 ) Excise tax payable ( 630,183 ) ( 691,672 ) Due to manager ( 74,562 ) 29,675 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES ( 140,465,742 ) ( 72,222,542 ) Financing activities Borrowings on debt 79,500,000 87,500,000 Paydowns on debt ( 18,340,000 ) ( 73,500,000 ) Issuance of notes 105,500,000 175,000,000 Repayments of notes ( 43,125,000 ) ( 60,000,000 ) Payments of deferred debt financing costs ( 5,087,947 ) ( 5,569,027 ) Discount on debt issuance, 6.000 % notes 2027 ( 176,000 ) - Premium on debt issuance, 4.375 % notes 2026 - 1,250,000 Proceeds from issuance of common stock - 157,040 Payments of cash dividends ( 10,601,930 ) ( 7,967,186 ) Repurchases of common stock ( 7,420,421 ) ( 1,252,143 ) Repurchases fees ( 5,911 ) ( 992 ) Payments of offering costs - ( 817 ) NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 100,242,791 115,616,875 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS ( 40,222,951 ) 43,394,333 CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD 52,870,342 29,915,074 CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD $ 12,647,391 $ 73,309,407 Supplemental information: Interest paid during the period $ 12,691,530 $ 8,679,552 Cash paid for taxes 2,759,376 703,158 Supplemental non-cash information: Payment-in-kind interest income and other adjustments to cost ( 1,799,723 ) 1,905,423 Net accretion of discount on investments 833,939 884,936 Amortization of deferred debt financing costs 1,674,315 1,023,062 Stock dividend distribution 2,196,868 1,742,614 See accompanying notes to consolidated financial statements. 4 Saratoga Investment Corp. Consolidated Schedule of Investments August 31, 2022 (unaudited) Company(1) Industry Investment Interest Rate/ Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Non-control/Non-affiliate investments - 228.1% (b) Altvia MidCo, LLC. Alternative Investment Management Software First Lien Term Loan (3M USD TERM SOFR+ 8.50 %), 10.28 % Cash, 7/18/2027 7/18/2022 $ 8,000,000 $ 7,921,109 $ 7,920,000 2.3 % Altvia MidCo, LLC. (h) Alternative Investment Management Software Series A-1 Preferred Shares 7/18/2022 2,000,000 2,000,000 2,000,000 0.6 % Total Alternative Investment Management Software 9,921,109 9,920,000 2.9 % Targus Holdings, Inc. (h) Consumer Products Common Stock 12/31/2009 210,456 1,589,630 921,256 0.3 % Total Consumer Products 1,589,630 921,256 0.3 % Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020 1,050 475,698 3,652,653 1.1 % Total Corporate Education Software 475,698 3,652,653 1.1 % GreyHeller LLC (h) Cyber Security Common Stock 11/10/2021 7,857,689 1,906,275 2,418,060 0.7 % Total Cyber Security 1,906,275 2,418,060 0.7 % New England Dental Partners Dental Practice Management First Lien Term Loan (3M USD LIBOR+ 8.00 %), 11.08 % Cash, 11/25/2025 11/25/2020 $ 6,555,000 6,509,311 6,495,350 1.9 % New England Dental Partners (j) Dental Practice Management Delayed Draw Term Loan (3M USD LIBOR+ 8.00 %), 11.08 % Cash, 11/25/2025 11/25/2020 $ 2,150,000 2,134,838 2,130,435 0.6 % Total Dental Practice Management 8,644,149 8,625,785 2.5 % Exigo, LLC Direct Selling Software First Lien Term Loan (1M USD LIBOR+ 5.75 %), 8.31 % Cash, 3/16/2027 3/16/2022 $ 24,937,500 24,737,201 24,688,125 7.3 % Exigo, LLC (j) Direct Selling Software Delayed Draw Term Loan (1M USD LIBOR+ 5.75 %), 8.31 % Cash, 3/16/2027 3/16/2022 $ - - - 0.0 % Exigo, LLC (j) Direct Selling Software Revolving Credit Facility (1M USD LIBOR+ 5.75 %), 8.31 % Cash, 3/16/2027 3/16/2022 $ 208,334 208,333 206,250 0.1 % Exigo, LLC (h), (i) Direct Selling Software Common Units 3/16/2022 1,041,667 1,041,667 1,041,667 0.3 % Total Direct Selling Software 25,987,201 25,936,042 7.7 % C2 Educational Systems Education Services First Lien Term Loan (3M USD LIBOR+ 8.50 %), 11.58 % Cash, 5/31/2023 5/31/2017 $ 18,500,000 18,489,014 18,524,050 5.5 % C2 Education Systems, Inc. (h) Education Services Series A-1 Preferred Stock 5/18/2021 3,127 499,904 636,732 0.2 % Zollege PBC Education Services First Lien Term Loan (3M USD LIBOR+ 5.50 %), 8.58 % Cash, 5/11/2026 5/11/2021 $ 16,000,000 15,888,280 14,675,200 4.4 % Zollege PBC (j) Education Services Delayed Draw Term Loan (3M USD LIBOR+ 5.50 %), 8.58 % Cash, 5/11/2026 5/11/2021 $ 500,000 496,314 375,800 0.1 % Zollege PBC (h) Education Services Class A Units 5/11/2021 250,000 250,000 160,160 0.0 % Total Education Services 35,623,512 34,371,942 10.2 % Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018 3,068 3,969,291 7,773,428 2.3 % GoReact Education Software First Lien Term Loan (3M USD LIBOR+ 7.50 %), 10.58 % Cash, 1/17/2025 1/17/2020 $ 8,000,000 7,932,329 7,832,000 2.3 % 5 Company(1) Industry Investment Interest Rate/ Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets GoReact (j) Education Software Delayed Draw Term Loan (3M USD LIBOR+ 7.50 %), 10.58 % Cash, 1/17/2025 1/18/2022 $ 2,000,000 2,000,000 1,947,500 0.6 % Identity Automation Systems (d) Education Software First Lien Term Loan (3M USD LIBOR+ 9.24 %), 12.32 % Cash, 5/8/2024 8/25/2014 $ 16,722,500 16,722,500 16,449,923 4.9 % Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014 232,616 232,616 320,090 0.1 % Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020 43,715 171,571 208,993 0.1 % Ready Education Education Software First Lien Term Loan (3M USD TERM SOFR+ 6.00 %), 8.00 % Cash, 8/5/2027 8/5/2022 $ 27,000,000 26,731,232 26,730,000 7.9 % Total Education Software 57,759,539 61,261,934 18.2 % TG Pressure Washing Holdings, LLC (h) Facilities Maintenance Preferred Equity 8/12/2019 488,148 488,148 617,415 0.2 % Total Facilities Maintenance 488,148 617,415 0.2 % Davisware, LLC Field Service Management First Lien Term Loan (3M USD LIBOR+ 7.00 %), 10.08 % Cash, 7/31/2024 9/6/2019 $ 6,000,000 5,963,845 5,923,200 1.8 % Davisware, LLC (j) Field Service Management Delayed Draw Term Loan (3M USD LIBOR+ 7.00 %), 10.08 % Cash, 7/31/2024 9/6/2019 $ 977,790 975,981 965,274 0.3 % Total Field Service Management 6,939,826 6,888,474 2.1 % GDS Software Holdings, LLC Financial Services First Lien Term Loan (3M USD LIBOR+ 7.00 %), 10.08 % Cash, 12/30/2026 12/30/2021 $ 22,713,926 22,588,227 22,232,391 6.6 % GDS Software Holdings, LLC (j) Financial Services Delayed Draw Term loan (3M USD LIBOR+ 7.00 %), 10.08 % Cash, 12/30/2026 12/30/2021 $ 2,250,000 2,229,203 2,180,335 0.6 % GDS Software Holdings, LLC (h) Financial Services Common Stock Class A Units 8/23/2018 250,000 250,000 493,097 0.1 % Total Financial Services 25,067,430 24,905,823 7.3 % Ascend Software, LLC Financial Services Software First Lien Term Loan (3M USD LIBOR+ 7.50 %), 10.58 % Cash, 12/15/2026 12/15/2021 $ 6,000,000 5,946,906 5,875,200 1.7 % Ascend Software, LLC (j) Financial Services Software Delayed Draw Term Loan (3M USD LIBOR+ 7.50 %), 10.58 % Cash, 12/15/2026 12/15/2021 $ 2,300,000 2,277,882 2,164,800 0.6 % Total Financial Services Software 8,224,788 8,040,000 2.3 % Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock 1/15/2016 5,000 380,353 584,570 0.2 % Total Healthcare Products Manufacturing 380,353 584,570 0.2 % Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018 $ 400,000 400,000 1,168,701 0.3 % ComForCare Health Care (d) Healthcare Services First Lien Term Loan (3M USD LIBOR+ 6.25 %), 9.33 % Cash, 1/31/2025 1/31/2017 $ 25,000,000 24,913,338 25,000,000 7.4 % Total Healthcare Services 25,313,338 26,168,701 7.7 % TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019 2,487 2,816,693 4,085,490 1.2 % HemaTerra Holding Company, LLC (d) Healthcare Software First Lien Term Loan (3M USD LIBOR+ 8.25 %), 11.33 % Cash, 1/31/2026 4/15/2019 $ 35,820,000 35,558,270 35,447,472 10.5 % HemaTerra Holding Company, LLC (d) Healthcare Software Delayed Draw Term Loan (3M USD LIBOR+ 8.25 %), 11.33 % Cash, 1/31/2026 4/15/2019 $ 13,930,000 13,851,039 13,785,128 4.1 % 6 Company(1) Industry Investment Interest Rate/ Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Procurement Partners, LLC Healthcare Software First Lien Term Loan (3M USD LIBOR+ 5.50 %), 8.58 % Cash, 11/12/2025 11/12/2020 $ 35,125,000 34,860,737 34,274,975 10.2 % Procurement Partners, LLC Healthcare Software Delayed Draw Term Loan (3M USD LIBOR+ 5.50 %), 8.58 % Cash, 11/12/2025 11/12/2020 $ 4,300,000 4,259,432 4,195,940 1.2 % Procurement Partners Holdings LLC (h) Healthcare Software Class A Units 11/12/2020 550,986 550,986 677,936 0.2 % Total Healthcare Software 91,897,157 92,466,941 27.4 % Roscoe Medical, Inc. (h) Healthcare Supply Common Stock 3/26/2014 5,081 508,077 - 0.0 % Total Healthcare Supply 508,077 - 0.0 % Book4Time, Inc. (a), (d) Hospitality/Hotel First Lien Term Loan (3M USD LIBOR+ 7.50 %), 10.58 %, 12/22/2025 12/22/2020 $ 3,136,517 3,114,306 3,136,517 0.9 % Book4Time, Inc. (a) Hospitality/Hotel Delayed Draw Term Loan (3M USD LIBOR+ 7.50 %), 10.58 %, 12/22/2025 12/22/2020 $ 2,000,000 1,981,430 2,000,000 0.6 % Book4Time, Inc. (a), (h), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020 200,000 156,826 235,040 0.1 % Knowland Group, LLC (h), (k) Hospitality/Hotel Second Lien Term Loan (3M USD LIBOR+ 8.00 %), 12.08 % Cash/1.00% PIK, 5/9/2024 11/9/2018 $ 15,878,989 15,878,989 9,711,590 2.9 % Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan (3M USD LIBOR+ 8.00 %), 11.08 % Cash, 9/2/2026 4/27/2020 $ 6,000,000 5,955,263 6,000,000 1.8 % Sceptre Hospitality Resources, LLC (j) Hospitality/Hotel Delayed Draw Term Loan (3M USD LIBOR+ 8.00 %), 11.08 % Cash, 9/2/2026 9/2/2021 $ 750,000 742,967 750,000 0.2 % Total Hospitality/Hotel 27,829,781 21,833,147 6.5 % Granite Comfort, LP (d) HVAC Services and Sales First Lien Term Loan (3M USD LIBOR+ 7.00 %), 10.08 % Cash, 11/16/2025 11/16/2020 $ 63,000,000 62,445,879 62,710,200 18.6 % Granite Comfort, LP (d), (j) HVAC Services and Sales Delayed Draw Term Loan (3M USD LIBOR+ 7.00 %), 10.08 % Cash, 11/16/2025 11/16/2020 $ 2,000,000 1,982,656 1,990,800 0.6 % Total HVAC Services and Sales 64,428,535 64,701,000 19.2 % Vector Controls Holding Co., LLC (d) Industrial Products First Lien Term Loan (3M USD LIBOR+ 6.50 %), 9.58 % Cash, 3/6/2025 3/6/2013 $ 4,186,686 4,186,686 4,186,686 1.2 % Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015 343 - 4,076,544 1.2 % Total Industrial Products 4,186,686 8,263,230 2.4 % AgencyBloc, LLC Insurance Software First Lien Term Loan (3M USD BSBY+ 8.00 %), 9.00 % Cash, 10/1/2026 10/1/2021 $ 12,272,727 12,176,256 12,189,272 3.6 % Panther ParentCo LLC (h) Insurance Software Class A Units 10/1/2021 2,225,000 2,225,000 2,718,154 0.8 % Total Insurance Software 14,401,256 14,907,426 4.4 % LogicMonitor, Inc. (d) IT Services First Lien Term Loan (3M USD LIBOR+ 5.00 ), 8.08 % Cash, 5/17/2023 3/20/2020 $ 43,000,000 42,885,490 43,000,000 12.8 % Total IT Services 42,885,490 43,000,000 12.8 % ActiveProspect, Inc. (j) Lead Management Software First Lien Term Loan (3M USD LIBOR+ 6.00 %), 9.08 % Cash, 8/8/2027 8/8/2022 $ - - - 0.0 % ActiveProspect, Inc. Lead Management Software Delayed Draw Term Loan (3M USD LIBOR+ 6.00 %), 9.08 % Cash, 8/8/2027 8/8/2022 $ 12,000,000 11,895,886 11,895,600 3.5 % Total Lead Management Software 11,895,886 11,895,600 3.5 % 7 Company(1) Industry Investment Interest Rate/ Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Centerbase, LLC Legal Software First Lien Term Loan (1M USD TERM SOFR+ 7.75 %), 10.03 % Cash, 1/18/2027 1/18/2022 $ 21,354,480 21,141,001 20,929,526 6.2 % Total Legal Software 21,141,001 20,929,526 6.2 % Madison Logic, Inc. (d) Marketing Orchestration Software First Lien Term Loan (1M USD LIBOR+ 5.50 %), 8.06 % Cash, 11/22/2026 12/10/2021 $ 28,771,084 28,654,535 28,543,793 8.5 % Madison Logic, Inc. (j) Marketing Orchestration Software Revolving Credit Facility (1M USD LIBOR+ 5.50 %), 8.06 % Cash, 11/22/2026 12/10/2021 $ - - - 0.0 % Total Marketing Orchestration Software 28,654,535 28,543,793 8.5 % inMotionNow, Inc. Marketing Services First Lien Term Loan (3M USD LIBOR+ 7.50 ), 10.58 % Cash, 5/15/2024 5/15/2019 $ 12,200,000 12,153,315 12,200,000 3.6 % inMotionNow, Inc. (d) Marketing Services Delayed Draw Term Loan (3M USD LIBOR+ 7.50 ) 10.58 % Cash, 5/15/2024 5/15/2019 $ 5,000,000 4,979,105 5,000,000 1.5 % Total Marketing Services 17,132,420 17,200,000 5.1 % ARC Health OpCo LLC (d) Mental Healthcare Services First Lien Term Loan (3M USD TERM SOFR+ 8.50 %), 10.50 % Cash, 8/5/2027 8/5/2022 $ 6,500,000 6,419,746 6,418,750 1.9 % ARC Health OpCo LLC (d), (j) Mental Healthcare Services Delayed Draw Term Loan (3M USD TERM SOFR+ 8.50 %), 10.50 % Cash, 8/5/2027 8/5/2022 $ - - - 0.0 % ARC Health OpCo LLC (h) Mental Healthcare Services Class A Preferred Shares 8/5/2022 1,851,852 2,000,000 2,000,000 0.6 % Total Mental Healthcare Services 8,419,746 8,418,750 2.5 % Chronus LLC Mentoring Software First Lien Term Loan (3M USD LIBOR+ 5.25 ), 8.33 % Cash, 8/26/2026 8/26/2021 $ 15,000,000 14,875,946 14,617,500 4.3 % Chronus LLC Mentoring Software First Lien Term Loan (3M USD LIBOR+ 6.00 ), 9.08 % Cash, 8/26/2026 8/26/2021 $ 3,000,000 2,970,276 2,923,500 0.9 % Chronus LLC (h) Mentoring Software Series A Preferred Stock 8/26/2021 3,000 3,000,000 3,396,063 1.0 % Total Mentoring Software 20,846,222 20,937,063 6.2 % Omatic Software, LLC Non-profit Services First Lien Term Loan (3M USD LIBOR+ 8.00 %), 12.08 % Cash/1.00% PIK, 5/29/2023 5/29/2018 $ 10,061,959 10,027,320 9,999,575 3.0 % Total Non-profit Services 10,027,320 9,999,575 3.0 % Emily Street Enterprises, L.L.C. Office Supplies Senior Secured Note (3M USD LIBOR+ 8.50 %), 11.58 % Cash, 12/31/2023 12/28/2012 $ 3,300,000 3,300,000 3,237,960 1.0 % Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests Expires 12/28/2022 12/28/2012 49,318 400,000 390,161 0.1 % Total Office Supplies 3,700,000 3,628,121 1.1 % Apex Holdings Software Technologies, LLC Payroll Services First Lien Term Loan (3M USD LIBOR+ 8.00 %), 11.08 % Cash, 9/21/2024 9/21/2016 $ 15,500,000 15,493,083 15,422,500 4.6 % Total Payroll Services 15,493,083 15,422,500 4.6 % Buildout, Inc. Real Estate Services First Lien Term Loan (3M USD LIBOR+ 7.00 %), 10.08 % Cash, 7/9/2025 7/9/2020 $ 14,000,000 13,908,526 13,827,800 4.1 % Buildout, Inc. Real Estate Services Delayed Draw Term Loan (3M USD LIBOR+ 7.00 %), 10.08 % Cash, 7/9/2025 2/12/2021 $ 38,500,000 38,207,942 38,026,450 11.3 % Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020 1,160 1,205,308 1,250,659 0.4 % Total Real Estate Services 53,321,776 53,104,909 15.8 % 8 Company(1) Industry Investment Interest Rate/ Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Archimeds Parent LLC (h) Research Software Class A Common Units 6/27/2022 1,000,000 1,000,000 1,000,000 0.3 % Wellspring Worldwide Inc. Research Software First Lien Term Loan (3M USD BSBY+ 7.25 %), 8.25 % Cash, 6/27/2027 6/27/2022 $ 9,600,000 9,495,082 9,493,440 2.8 % Total Research Software 10,495,082 10,493,440 0 LFR Chicken LLC Restaurant First Lien Term Loan (1M USD LIBOR+ 7.00 %), 9.56 % Cash, 11/19/2026 11/19/2021 $ 12,000,000 11,896,714 11,854,800 3.5 % LFR Chicken LLC (j) Restaurant Delayed Draw Term Loan (1M USD LIBOR+ 7.00 %), 9.56 % Cash, 11/19/2026 11/19/2021 $ 9,000,000 8,917,647 8,891,100 2.6 % LFR Chicken LLC (h) Restaurant Series B Preferred Units 11/19/2021 497,183 1,000,000 1,293,887 0.4 % TMAC Acquisition Co., LLC Restaurant Unsecured Term Loan 8.00 % PIK, 9/01/2023 3/1/2018 $ 2,979,312 2,979,312 2,768,516 0.8 % Total Restaurant 24,793,673 24,808,303 7.3 % Pepper Palace, Inc. (d) Specialty Food Retailer First Lien Term Loan (3M USD LIBOR+ 6.25 %), 9.33 % Cash, 6/30/2026 6/30/2021 $ 33,660,000 33,382,690 26,991,954 8.0 % Pepper Palace, Inc. (j) Specialty Food Retailer Delayed Draw Term Loan (3M USD LIBOR+ 6.25 %), 9.33 % Cash, 6/30/2026 6/30/2021 $ - - - 0.0 % Pepper Palace, Inc. (j) Specialty Food Retailer Revolving Credit Facility (3M USD LIBOR+ 6.25 %), 9.33 % Cash, 6/30/2026 6/30/2021 $ - - - 0.0 % Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest 6/30/2021 1,000,000 1,000,000 - 0.0 % Total Specialty Food Retailer 34,382,690 26,991,954 8.0 % ArbiterSports, LLC (d) Sports Management First Lien Term Loan (3M USD LIBOR+ 6.50 %), 9.58 % Cash, 2/21/2025 2/21/2020 $ 26,000,000 25,872,154 25,565,800 7.6 % ArbiterSports, LLC (d) Sports Management Delayed Draw Term Loan (3M USD LIBOR+ 6.50 %), 9.58 % Cash, 2/21/2025 2/21/2020 $ 1,000,000 1,000,000 983,300 0.3 % Total Sports Management 26,872,154 26,549,100 7.9 % Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014 100,000 100,000 2,061,008 0.6 % Total Staffing Services 100,000 2,061,008 0.6 % JDXpert Talent Acquisition Software First Lien Term Loan (3M USD LIBOR+ 8.50 %), 11.58 % Cash, 5/2/2027 5/2/2022 $ 6,000,000 5,941,228 5,940,000 JDXpert (j) Talent Acquisition Software Delayed Draw Term Loan (3M USD LIBOR+ 8.50 %), 11.58 % Cash, 5/2/2027 5/2/2022 $ - - - Jobvite, Inc. (d) Talent Acquisition Software First Lien Term Loan (3M USD TERM SOFR+ 8.00 %), 9.68 % Cash, 8/5/2028 8/5/2022 $ 20,000,000 19,852,534 20,000,000 5.9 % Total Talent Acquisition Software 25,793,762 25,940,000 5.9 % National Waste Partners (d) Waste Services Second Lien Term Loan 10.00 % Cash, 11/13/2022 2/13/2017 $ 9,000,000 9,000,000 9,000,000 2.7 % Total Waste Services 9,000,000 9,000,000 2.7 % Sub Total Non-control/Non-affiliate investments 776,527,328 775,408,041 228.1 % 9 Company(1) Industry Investment Interest Rate/ Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Affiliate investments - 20.9% (b) Artemis Wax Corp. (d), (f) Consumer Services Delayed Draw Term Loan (1M USD LIBOR+ 9.00 %), 11.56 % Cash, 5/20/2026 5/20/2021 $ 30,000,000 29,748,215 29,925,000 8.9 % Artemis Wax Corp. (f), (j) Consumer Services Delayed Draw Term Loan (1M USD LIBOR+ 6.50 %), 9.06 % Cash, 5/20/2026 5/19/2022 $ 18,000,000 17,822,955 17,955,000 5.3 % Artemis Wax Corp. (f), (h) Consumer Services Series B-1 Preferred Stock 5/20/2021 934,463 1,500,000 4,825,352 1.4 % Artemis Wax Corp. (f), (h) Consumer Services Series C Preferred Stock 5/20/2021 5,951 5,951,492 5,951,488 1.8 % Total Consumer Services 55,022,662 58,656,840 17.4 % ETU Holdings, Inc. (f) Corporate Education Software First Lien Term Loan (3M USD LIBOR+ 9.00 %), 12.08 % Cash, 8/18/2027 8/18/2022 $ 7,000,000 6,930,251 6,930,000 2.1 % ETU Holdings, Inc. (f) Corporate Education Software Second Lien Term Loan 15.00 % PIK, 2/18/2028 8/18/2022 $ 5,000,000 4,950,012 4,950,000 1.5 % ETU Holdings, Inc. (f),(h) Corporate Education Software Series A-1 Preferred Stock 8/18/2022 3,000,000 3,000,000 3,000,000 0.9 % Total Corporate Education Software 14,880,263 14,880,000 4.5 % Axero Holdings, LLC (f) Employee Collaboration Software First Lien Term Loan (3M USD LIBOR+ 10.00 %), 13.08 % Cash, 6/30/2026 6/30/2021 $ 5,500,000 5,453,695 5,508,800 1.6 % Axero Holdings, LLC (f) Employee Collaboration Software Delayed Draw Term Loan (3M USD LIBOR+ 10.00 %), 13.08 % Cash, 6/30/2026 6/30/2021 $ 1,100,000 1,089,347 1,101,760 0.3 % Axero Holdings, LLC (f), (j) Employee Collaboration Software Revolving Credit Facility (3M USD LIBOR+ 10.00 %), 13.08 % Cash, 6/30/2026 2/3/2022 $ - - - 0.0 % Axero Holdings, LLC (f), (h) Employee Collaboration Software Series A Preferred Units 6/30/2021 2,000,000 2,000,000 2,350,000 0.7 % Axero Holdings, LLC (f), (h) Employee Collaboration Software Series B Preferred Units 6/30/2021 2,000,000 2,000,000 3,125,804 0.9 % Total Employee Collaboration Software 10,543,042 12,086,364 3.5 % Sub Total Affiliate investments 80,445,967 85,623,204 20.9 % Control investments - 27.7% (b) Netreo Holdings, LLC (g) IT Services First Lien Term Loan (3M USD LIBOR + 6.50 %), 11.08 % Cash/1.50% PIK 12/31/2025 7/3/2018 $ 5,487,916 5,466,713 5,434,135 1.6 % Netreo Holdings, LLC (d), (g) IT Services Delayed Draw Term Loan (3M USD LIBOR + 6.50 %), 11.08 % Cash/1.50% PIK, 12/31/2025 5/26/2020 $ 17,582,671 17,518,802 17,410,361 5.2 % Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018 4,600,677 8,344,500 17,661,450 5.2 % Total IT Services 31,330,015 40,505,946 12.0 % Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities 5.50 %, 4/20/2033 1/22/2008 $ 111,000,000 30,113,859 23,397,375 6.9 % Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities (3M USD LIBOR+ 10.00 %), 13.08 %, 4/20/2033 8/9/2021 $ 9,375,000 9,375,000 8,929,954 2.6 % Total Structured Finance Securities 39,488,859 32,327,329 9.5 % Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Unsecured Loan 10.00 %, 6/15/2023 2/17/2022 $ 14,072,188 14,072,188 14,072,188 4.2 % Saratoga Senior Loan Fund I JV, LLC (a), (g) Investment Fund Membership Interest 2/17/2022 14,072,188 14,072,188 6,726,960 2.0 % Total Investment Fund 28,144,376 20,799,148 6.2 % Sub Total Control investments 98,963,250 93,632,423 27.7 % TOTAL INVESTMENTS - 276.7% (b) $ 955,936,545 $ 954,663,668 276.7 % 10 Number of Shares Cost Fair Value % of Net Assets Cash and cash equivalents and cash and cash equivalents, reserve accounts - 3.8% (b) U.S. Bank Money Market (l) 12,647,391 $ 12,647,391 $ 12,647,391 3.8 % Total cash and cash equivalents and cash and cash equivalents, reserve accounts 12,647,391 $ 12,647,391 $ 12,647,391 3.8 % (1) Securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and are restricted securities. (a) Represents an investment that is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, as amended (the 1940 Act”). As of August 31, 2022, non-qualifying assets represent 7.4% of the Company’s portfolio at fair value. As a BDC, the Company generally has to invest at least 70% of its total assets in qualifying assets. (b) Percentages are based on net assets of $337,213,275 as of August 31, 2022. (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 8 to the consolidated financial statements). (e) This investment does not have a stated interest rate that is payable thereon. As a result, the 5.50% 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) As defined in the 1940 Act, this portfolio company is an “affiliate” as we own between 5.0% and 25.0% of the outstanding voting securities. Transactions during the six months ended August 31, 2022 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) Artemis Wax Corp. $ 17,940,000 $ - $ 1,962,230 $ - $ - $ 2,173,891 Axero Holdings, LLC 1,089,000 - 377,596 - - 994,412 ETU Holdins, Inc. 14,880,000 - 61,989 - - ( 263 ) Total $ 33,909,000 $ - $ 2,401,815 $ - $ - $ 3,168,040 11 (g) As defined in the 1940 Act, we “control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the six months ended August 31, 2022 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 $ 3,960,000 $ - $ 1,001,323 $ - $ - $ ( 1,467,584 ) Saratoga Investment Corp. CLO 2013-1, Ltd. - - 1,003,544 1,632,988 - ( 3,098,264 ) Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note - - 538,003 - - ( 445,046 ) Saratoga Senior Loan Fund I JV, LLC 947,188 - 674,367 - - - Saratoga Senior Loan Fund I JV, LLC 947,188 - - - - ( 6,236,292 ) Total $ 5,854,376 $ - $ 3,217,237 $ 1,632,988 $ - $ ( 11,247,186 ) (h) Non-income producing at August 31, 2022. (i) Includes securities issued by an affiliate of the company. (j) All or a portion of this investment has an unfunded commitment as of August 31, 2022. (See Note 9 to the consolidated financial statements). (k) As of August 31, 2022, the investment was on non-accrual status. The fair value of these investments was approximately $9.7 million, which represented 1.0% 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 August 31, 2022. BSBY - Bloomberg Short-Term Bank Yield LIBOR - London Interbank Offered Rate SOFR - Secured Overnight Financing Rate 3M USD BSBY - The 3 month USD BSBY rate as of August 31, 2022 was 2.97%. 1M USD LIBOR - The 1 month USD LIBOR rate as of August 31, 2022 was 2.56%. 3M USD LIBOR - The 3 month USD LIBOR rate as of August 31, 2022 was 3.08%. 1M USD TERM SOFR - The 1 month USD SOFR rate as of August 31, 2022 was 2.28% 3M USD TERM SOFR - The 3 month USD SOFR rate as of August 31, 2022 was 1.68% PIK - Payment-in-Kind (see Note 2 to the consolidated financial statements). See accompanying notes to consolidated financial statements. 12 Saratoga Investment Corp. Consolidated Schedule of Investments February 28, 2022 Company(1) Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Non-control/Non-affiliate investments - 187.4% (b) Targus Holdings, Inc. (h) Consumer Products Common Stock 12/31/2009 210,456 $ 1,589,630 $ 692,535 0.2 % Total Consumer Products 1,589,630 692,535 0.2 % Schoox, Inc. (h), (i) Corporate Education Software Series 1 Membership Interest 12/8/2020 1,050 475,698 3,305,839 0.9 % Total Corporate Education Software 475,698 3,305,839 0.9 % GreyHeller LLC (h) Cyber Security Common Stock 11/10/2021 6,742,392 1,635,704 1,635,704 0.5 % Total Cyber Security 1,635,704 1,635,704 0.5 % 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 6,502,672 6,404,891 1.8 % 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 $ 2,150,000 2,132,639 1,997,715 0.6 % Total Dental Practice Management 8,635,311 8,402,606 2.4 % PDDS Buyer, LLC (d) Dental Practice Management Software First Lien Term Loan (3M USD LIBOR+ 5.50 %), 6.00 % Cash, 7/15/2024 7/15/2019 $ 28,000,000 27,943,852 27,938,400 7.9 % PDDS Buyer, LLC (h) Dental Practice Management Software Series A-1 Preferred Shares 8/10/2020 1,755,831 2,000,000 7,099,940 2.0 % Total Dental Practice Management Software 29,943,852 35,038,340 9.9 % C2 Educational Systems Education Services First Lien Term Loan (3M USD LIBOR+ 8.50 %), 10.00 % Cash, 5/31/2023 5/31/2017 $ 18,500,000 18,484,747 18,220,650 5.1 % C2 Education Systems, Inc. (h) Education Services Series A-1 Preferred Stock 5/18/2021 3,127 499,904 599,296 0.2 % Zollege PBC Education Services First Lien Term Loan (3M USD LIBOR+ 5.50 %), 6.50 % Cash, 5/11/2026 5/11/2021 $ 16,000,000 15,877,908 15,794,300 4.4 % Zollege PBC (j) Education Services Delayed Draw Term Loan (3M USD LIBOR+ 5.50 %), 6.50 % Cash, 5/11/2026 5/11/2021 $ 500,000 495,811 493,950 0.1 % Zollege PBC (h) Education Services Class A Units 5/11/2021 250,000 250,000 201,218 0.1 % Total Education Services 35,608,370 35,309,414 9.9 % Destiny Solutions Inc. (h), (i) Education Software Limited Partner Interests 5/16/2018 3,065 3,969,291 7,632,061 2.1 % Identity Automation Systems (d) Education Software First Lien Term Loan (3M USD LIBOR+ 9.24 %), 10.99 % Cash, 5/8/2024 8/25/2014 $ 16,941,250 16,941,250 16,941,250 4.8 % Identity Automation Systems (h) Education Software Common Stock Class A-2 Units 8/25/2014 232,616 232,616 801,923 0.2 % Identity Automation Systems (h) Education Software Common Stock Class A-1 Units 3/6/2020 43,715 171,571 200,820 0.1 % GoReact Education Software First Lien Term Loan (3M USD LIBOR+ 7.50 %), 9.50 % Cash, 1/17/2025 1/17/2020 $ 8,000,000 7,920,033 8,080,000 2.3 % GoReact (j) Education Software Delayed Draw Term Loan (3M USD LIBOR+ 7.50 %), 9.50 % Cash, 1/17/2025 1/18/2022 $ - - - 0.0 % Total Education Software 29,234,761 33,656,054 9.5 % TG Pressure Washing Holdings, LLC (h) Facilities Maintenance Preferred Equity 8/12/2019 488,148 488,148 482,036 0.1 % Total Facilities Maintenance 488,148 482,036 0.1 % Davisware, LLC Field Service Management First Lien Term Loan (3M USD LIBOR+ 7.00 %), 9.00 % Cash, 7/31/2024 9/6/2019 $ 6,000,000 5,954,705 6,003,000 1.7 % Davisware, LLC (j) Field Service Management Delayed Draw Term Loan (3M USD LIBOR+ 7.00 %), 9.00 % Cash, 7/31/2024 9/6/2019 $ 977,790 975,504 978,279 0.3 % Total Field Service Management 6,930,209 6,981,279 2.0 % GDS Software Holdings, LLC Financial Services First Lien Term Loan (3M USD LIBOR+ 7.00 %), 8.00 % Cash, 12/30/2026 12/30/2021 $ 22,713,926 22,579,864 22,570,829 6.3 % GDS Software Holdings, LLC (j) Financial Services Delayed Draw Term loan (3M USD LIBOR+ 7.00 %), 8.00 % Cash, 12/30/2026 12/18/2021 $ 500,000 495,031 496,850 0.1 % GDS Software Holdings, LLC (h) Financial Services Common Stock Class A Units 8/23/2018 250,000 250,000 472,009 0.1 % Total Financial Services 23,324,895 23,539,688 6.5 % 13 Company(1) Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Ascend Software, LLC Financial Services Software First Lien Term Loan (3M USD LIBOR+ 7.50 %), 8.50 % Cash, 12/15/2026 12/15/2021 $ 6,000,000 5,942,482 5,940,000 1.7 % Ascend Software, LLC (j) Financial Services Software Delayed Draw Term Loan (3M USD LIBOR+ 7.50 %), 8.50 % Cash, 12/15/2026 12/15/2021 $ - - - 0.0 % Total Financial Services Software 5,942,482 5,940,000 1.7 % Ohio Medical, LLC (h) Healthcare Products Manufacturing Common Stock 1/15/2016 5,000 380,353 714,271 0.2 % Total Healthcare Products Manufacturing 380,353 714,271 0.2 % Axiom Parent Holdings, LLC (h) Healthcare Services Common Stock Class A Units 6/19/2018 400,000 400,000 1,032,934 0.3 % 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 9,974,217 10,013,000 2.8 % 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 5,977,846 6,007,800 1.7 % ComForCare Health Care (d) Healthcare Services First Lien Term Loan (3M USD LIBOR+ 7.25 %), 8.25 % Cash, 1/31/2025 1/31/2017 $ 25,000,000 24,903,581 25,000,000 7.0 % Total Healthcare Services 41,255,644 42,053,734 11.8 % TRC HemaTerra, LLC (h) Healthcare Software Class D Membership Interests 4/15/2019 2,487 2,816,693 3,788,769 1.1 % HemaTerra Holding Company, LLC (d) Healthcare Software First Lien Term Loan (3M USD LIBOR+ 8.25 %), 9.25 % Cash, 1/31/2026 4/15/2019 $ 36,000,000 35,715,061 35,640,000 10.0 % HemaTerra Holding Company, LLC (d) Healthcare Software Delayed Draw Term Loan (3M USD LIBOR+ 8.25 %), 9.25 % Cash, 1/31/2026 4/15/2019 $ 14,000,000 13,912,744 13,860,000 3.9 % Procurement Partners, LLC Healthcare Software First Lien Term Loan (3M USD LIBOR+ 5.50 %), 6.50 % Cash, 11/12/2025 11/12/2020 $ 35,125,000 34,827,633 34,998,550 9.8 % Procurement Partners, LLC (j) Healthcare Software Delayed Draw Term Loan (3M USD LIBOR+ 5.50 %), 6.50 % Cash, 11/12/2025 11/12/2020 $ 1,200,000 1,188,047 1,195,680 0.3 % Procurement Partners Holdings LLC (h) Healthcare Software Class A Units 11/12/2020 550,986 550,986 643,044 0.2 % Total Healthcare Software 89,011,164 90,126,043 25.3 % Roscoe Medical, Inc. (h) Healthcare Supply Common Stock 3/26/2014 5,081 508,077 52,853 0.0 % Roscoe Medical, Inc. Healthcare Supply Second Lien Term Loan 11.25 % Cash, 3/31/2022 3/26/2014 $ 5,141,413 5,141,413 5,141,413 1.4 % Total Healthcare Supply 5,649,490 5,194,266 1.4 % Book4Time, Inc. (a), (d) Hospitality/Hotel First Lien Term Loan (3M USD LIBOR+ 8.50 %), 10.25 %, 12/22/2025 12/22/2020 $ 3,136,517 3,111,278 3,112,052 0.9 % 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), (h), (i) Hospitality/Hotel Class A Preferred Shares 12/22/2020 $ 200,000 156,826 198,638 0.1 % Knowland Group, LLC Hospitality/Hotel Second Lien Term Loan (3M USD LIBOR+ 8.00 %), 10.00 % Cash/1.00% PIK, 5/9/2024 11/9/2018 $ 15,878,989 15,878,989 10,592,873 3.0 % Sceptre Hospitality Resources, LLC Hospitality/Hotel First Lien Term Loan (1M USD LIBOR+ 8.00 %), 9.00 % Cash, 9/2/2026 4/27/2020 $ 6,000,000 5,952,460 6,021,000 1.7 % Sceptre Hospitality Resources, LLC (j) Hospitality/Hotel Delayed Draw Term Loan (1M USD LIBOR+ 8.00 %), 9.00 % Cash, 9/2/2026 9/2/2021 $ - - - 0.0 % Total Hospitality/Hotel 25,099,553 19,924,563 5.7 % Granite Comfort, LP HVAC Services and Sales First Lien Term Loan (1M USD LIBOR+ 8.00 %), 9.00 % Cash, 11/16/2025 11/16/2020 $ 28,000,000 27,764,146 27,977,600 7.9 % Granite Comfort, LP(j) HVAC Services and Sales Delayed Draw Term Loan (1M USD LIBOR+ 8.00 %), 9.00 % Cash, 11/16/2025 11/16/2020 $ 2,000,000 1,980,805 1,998,400 0.6 % Total HVAC Services and Sales 29,744,951 29,976,000 8.5 % AgencyBloc, LLC Insurance Software First Lien Term Loan (3M USD BSBY+ 8.00 %), 9.00 % Cash, 10/1/2026 10/1/2021 $ 9,000,000 8,925,938 8,920,800 2.5 % Panther ParentCo LLC (h) Insurance Software Class A Units 10/1/2021 2,000,000 2,000,000 2,000,000 0.6 % Total Insurance Software 10,925,938 10,920,800 3.1 % 14 Company(1) 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 (3M USD LIBOR+ 6.50 %), 8.00 % Cash, 3/6/2025 3/6/2013 $ 5,008,186 5,008,186 5,008,186 1.4 % Vector Controls Holding Co., LLC (h) Industrial Products Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027 5/31/2015 343 - 3,418,993 1.0 % Total Industrial Products 5,008,186 8,427,179 2.4 % LogicMonitor, Inc. (d) IT Services First Lien Term Loan (3M USD LIBOR+ 5.00 ), 6.00 % Cash, 5/17/2023 3/20/2020 $ 43,000,000 42,806,801 43,000,000 12.1 % Total IT Services 42,806,801 43,000,000 12.1 % Centerbase, LLC Legal Software First Lien Term Loan (Daialy USD SOFR+ 7.50 %), 8.50 % Cash, 1/18/2027 1/18/2022 $ 7,500,000 7,409,860 7,425,000 2.1 % Total Legal Software 7,409,860 7,425,000 2.1 % Madison Logic, Inc. Marketing Orchestration Software First Lien Term Loan (1M USD LIBOR+ 5.75 %), 6.75 % Cash, 11/22/2026 12/10/2021 $ 28,915,663 28,782,977 28,776,867 8.1 % Madison Logic, Inc. (j) Marketing Orchestration Software Revolving Credit Facility (1M USD LIBOR+ 5.75 %), 6.75 % Cash, 11/22/2026 12/10/2021 $ - - - 0.0 % Total Marketing Orchestration Software 28,782,977 28,776,867 8.1 % 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 12,139,533 12,290,280 3.5 % inMotionNow, Inc. (d) Marketing Services Delayed Draw Term Loan (3M USD LIBOR+ 7.50 ) 10.00 % Cash, 5/15/2024 5/15/2019 $ 5,000,000 4,972,992 5,037,000 1.4 % Total Marketing Services 17,112,525 17,327,280 4.9 % Chronus LLC Mentoring Software First Lien Term Loan (3M USD LIBOR+ 5.25 ), 6.25 % Cash, 8/26/2026 8/26/2021 $ 15,000,000 14,861,338 14,938,500 4.2 % Chronus LLC (h) Mentoring Software Series A Preferred Stock 8/26/2021 3,000 3,000,000 3,382,625 1.0 % Total Mentoring Software 17,861,338 18,321,125 5.2 % Omatic Software, LLC Non-profit Services First Lien Term Loan (3M USD LIBOR+ 8.00 %), 9.75 % Cash/1.00% PIK, 5/29/2023 5/29/2018 $ 10,010,685 9,955,082 10,038,714 2.8 % Total Non-profit Services 9,955,082 10,038,714 2.8 % 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 3,278,880 0.9 % Emily Street Enterprises, L.L.C. (h) Office Supplies Warrant Membership Interests Expires 12/28/2022 12/28/2012 49,318 400,000 446,927 0.1 % Total Office Supplies 3,700,000 3,725,807 1.0 % 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 $ 17,000,000 16,990,006 17,000,000 4.7 % Total Payroll Services 16,990,006 17,000,000 4.7 % Buildout, Inc. Real Estate Services First Lien Term Loan (3M USD LIBOR+ 7.00 %), 8.00 % Cash, 7/9/2025 7/9/2020 $ 14,000,000 13,897,546 13,904,800 3.9 % Buildout, Inc. Real Estate Services Delayed Draw Term Loan (3M USD LIBOR+ 7.00 %), 8.00 % Cash, 7/9/2025 2/12/2021 $ 38,500,000 38,173,998 38,238,200 10.6 % Buildout, Inc. (h), (i) Real Estate Services Limited Partner Interests 7/9/2020 1,205 1,205,308 1,363,014 0.4 % Total Real Estate Services 53,276,852 53,506,014 14.9 % LFR Chicken LLC Restaurant First Lien Term Loan (1M USD LIBOR+ 7.00 %), 8.00 % Cash, 11/19/2026 11/19/2021 $ 12,000,000 11,886,588 11,880,000 3.3 % LFR Chicken LLC (j) Restaurant Delayed Draw Term Loan (1M USD LIBOR+ 7.00 %), 8.00 % Cash, 11/19/2026 11/19/2021 $ - - - 0.0 % LFR Chicken LLC (h) Restaurant Series B Preferred Units 11/19/2021 497,183 1,000,000 999,984 0.3 % TMAC Acquisition Co., LLC Restaurant Unsecured Term Loan 8.00 % PIK, 9/01/2023 3/1/2018 $ 2,979,312 2,979,312 2,805,541 0.8 % Total Restaurant 15,865,900 15,685,525 4.4 % 15 Company(1) Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Pepper Palace, Inc. (d) Specialty Food Retailer First Lien Term Loan (3M USD LIBOR+ 6.25 %), 7.25 % Cash, 6/30/2026 6/30/2021 $ 33,830,000 33,531,592 33,261,656 9.2 % Pepper Palace, Inc. (j) Specialty Food Retailer Delayed Draw Term Loan (3M USD LIBOR+ 6.25 %), 7.25 % Cash, 6/30/2026 6/30/2021 $ - - ( 33,600 ) 0.0 % Pepper Palace, Inc. (j) Specialty Food Retailer Revolving Credit Facility (3M USD LIBOR+ 6.25 %), 7.25 % Cash, 6/30/2026 6/30/2021 $ - - ( 42,000 ) 0.0 % Pepper Palace, Inc. (h) Specialty Food Retailer Membership Interest 6/30/2021 1,000,000 1,000,000 827,050 0.1 % Total Specialty Food Retailer 34,531,592 34,013,106 9.3 % 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 25,846,091 25,667,199 7.1 % ArbiterSports, LLC (d) Sports Management Delayed Draw Term Loan (3M USD LIBOR+ 6.50 %), 8.25 % Cash, 2/21/2025 2/21/2020 $ 1,000,000 999,997 987,200 0.3 % Total Sports Management 26,846,088 26,654,399 7.4 % Avionte Holdings, LLC (h) Staffing Services Class A Units 1/8/2014 100,000 100,000 1,912,328 0.5 % Total Staffing Services 100,000 1,912,328 0.5 % Jobvite, Inc. (d) Talent Acquisition Software Second Lien Term Loan (3M USD LIBOR+ 7.50 %), 8.50 % Cash, 1/6/2027 7/6/2021 $ 20,000,000 19,841,684 19,652,000 5.5 % Total Talent Acquisition Software 19,841,684 19,652,000 5.5 % National Waste Partners (d) Waste Services Second Lien Term Loan 10.00 % Cash, 11/13/2022 2/13/2017 $ 9,000,000 9,000,000.0 9,000,000.0 2.5 % Total Waste Services 9,000,000 9,000,000 2.5 % Sub Total Non-control/Non-affiliate investments 654,965,044 668,358,516 187.4 % Affiliate investments - 13.5% (b) Artemis Wax Corp. (f), (j) Consumer Services Delayed Draw Term Loan (1M USD LIBOR+ 9.00 %), 11.00 % Cash, 5/20/2026 5/20/2021 $ 30,000,000 29,727,282 30,000,000 8.4 % Artemis Wax Corp. (f), (h) Consumer Services Series B-1 Preferred Stock 5/20/2021 934,463 1,500,000 2,687,573 0.8 % Artemis Wax Corp. (f), (h) Consumer Services Series C Preferred Stock 5/20/2021 5,547 5,546,609 5,546,605 1.6 % Total Consumer Services 36,773,891 38,234,178 10.8 % Axero Holdings, LLC (f) Employee Collaboration Software First Lien Term Loan (3M USD LIBOR+ 10.00 %), 11.00 % Cash, 6/30/2026 6/30/2021 $ 5,500,000 5,451,036 5,482,950 1.5 % Axero Holdings, LLC (f), (j) Employee Collaboration Software Delayed Draw Term Loan (3M USD LIBOR+ 10.00 %), 11.00 % Cash, 6/30/2026 6/30/2021 $ - - - 0.0 % Axero Holdigns, LLC (f), (j) Employee Collaboration Software Revolving Credit Facility (3M USD LIBOR+ 10.00 %), 11.00 % Cash, 6/30/2026 2/3/2022 $ - - - 0.0 % Axero Holdings, LLC (f), (h) Employee Collaboration Software Series A Preferred Units 6/30/2021 2,000,000 2,000,000 2,198,000 0.5 % Axero Holdings, LLC (f), (h) Employee Collaboration Software Series B Preferred Units 6/30/2021 2,000,000 2,000,000 2,318,996 0.7 % Total Employee Collaboration Software 9,451,036 9,999,946 2.7 % Sub Total Affiliate investments 46,224,927 48,234,124 13.5 % 16 Company(1) Industry Investment Interest Rate/Maturity Original Acquisition Date Principal/ Number of Shares Cost Fair Value (c) % of Net Assets Control investments - 28.3% (b) Netreo Holdings, LLC (g) IT Services First Lien Term Loan (3M USD LIBOR + 8.00 %), 9.00 % Cash 12/31/2025 7/3/2018 $ 5,432,440 5,409,201 5,421,575 1.4 % Netreo Holdings, LLC (d), (g), (j) IT Services Delayed Draw Term Loan (3M USD LIBOR + 8.00 %), 9.00 % Cash, 12/31/2025 5/26/2020 $ 13,433,515 13,406,530 13,406,648 3.8 % Netreo Holdings, LLC (g), (h) IT Services Common Stock Class A Unit 7/3/2018 4,600,677 8,344,500 18,975,523 5.3 % Total IT Services 27,160,231 37,803,746 10.5 % Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g) Structured Finance Securities Other/Structured Finance Securities 9.27 %, 4/20/2033 1/22/2008 $ 111,000,000 32,273,125 28,654,905 8.1 % Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note (a), (g) Structured Finance Securities Other/Structured Finance Securities (3M USD LIBOR+ 10.00 %), 10.17 %, 4/20/2033 8/9/2021 $ 9,375,000 9,375,000 9,375,000 2.6 % Total Structured Finance Securities 41,648,125 38,029,905 10.7 % Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Unsecured Loan 10.00 %, 6/15/2023 2/17/2022 $ 13,125,000 13,125,000 13,125,000 3.7 % Saratoga Senior Loan Fund I JV, LLC (a), (g), (j) Investment Fund Membership Interest 2/17/2022 13,125,000 13,125,000 12,016,064 3.4 % Total Investment Fund 26,250,000 25,141,064 7.1 % Sub Total Control investments 95,058,356 100,974,715 28.3 % TOTAL INVESTMENTS - 229.2% (b) $ 796,248,327 $ 817,567,355 229.2 % Number of Shares Cost Fair Value % of Net Assets Cash and cash equivalents and cash and cash equivalents, reserve accounts - 14.9% (b) U.S. Bank Money Market (k) 52,870,342 $ 52,870,342 $ 52,870,342 14.9 % Total cash and cash equivalents and cash and cash equivalents, reserve accounts 52,870,342 $ 52,870,342 $ 52,870,342 14.9 % (1) Securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and are restricted securities. (a) Represents an investment that is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, as amended (the 1940 Act”). As of February 28, 2022, non-qualifying assets represent 6.7% of the Company’s portfolio at fair value. As a BDC, the Company generally has to invest at least 70% of its total assets in qualifying assets. (b) Percentages are based on net assets of $355,780,523 as of February 28, 2022. (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 8 to the consolidated financial statements). (e) This investment does not have a stated interest rate that is payable thereon. As a result, the 9.27% 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. 17 (f) As defined in the 1940 Act, this portfolio company is an “affiliate” as we own between 5.0% and 25.0% of the outstanding voting securities. GreyHeller, LLC is no longer an affiliate as of February 28, 2022. Transactions during the year ended February 28, 2022 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) Artemis Wax Corp. $ 36,200,000 $ - $ 1,919,100 $ - $ - $ 1,460,287 Axero Holdings, LLC 9,445,000 - 416,092 - - 548,910 GreyHeller, LLC 8,910,000 ( 26,428,457 ) 973,278 - 7,328,457 ( 3,102,569 ) Top Gun - - - - - 1,066,536 Total $ 54,555,000 $ ( 26,428,457 ) $ 3,308,471 $ - $ 7,328,457 $ ( 26,836 ) (g) As defined in the 1940 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, 2022 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 $ 17,074,500 $ - $ 1,814,735 $ - $ - $ 5,055,909 Saratoga Investment Corp. CLO 2013-1, Ltd. - - 4,372,958 3,262,591 - ( 1,221,309 ) Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-3 Note - ( 17,875,000 ) 814,431 - - ( 454,025 ) Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-1-R-3 Note 8,500,000 ( 8,500,000 ) 4,786 - ( 139,867 ) - Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note 9,375,000 - 539,564 - - - Saratoga Senior Loan Fund I JV, LLC 13,125,000 - 126,389 - - - Saratoga Senior Loan Fund I JV, LLC 13,125,000 - - - - ( 1,108,936 ) Total $ 61,199,500 $ ( 26,375,000 ) $ 7,672,863 $ 3,262,591 $ ( 139,867 ) $ 2,271,639 (h) Non-income producing at February 28, 2022. (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, 2022. (See Note 9 to the consolidated financial statements). (k) 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, 2022. BSBY - Bloomberg Short-Term Bank Yield LIBOR - London Interbank Offered Rate SOFR - Secured Overnight Financing Rate 3M USD BSBY - The 3 month USD BSBY rate as of February 28, 2022 was 0.50%. 1M USD LIBOR - The 1 month USD LIBOR rate as of February 28, 2022 was 0.24%. 3M USD LIBOR - The 3 month USD LIBOR rate as of February 28, 2022 was 0.50%. Daily USD SOFR - The daily USD SOFR rate as of February 28, 2022 was 0.05% PIK - Payment-in-Kind (see Note 2 to the consolidated financial statements). See accompanying notes to consolidated financial statements. 18 SARATOGA INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS August 31, 2022 (unaudited) 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, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company’s 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-ARC, Inc., SIA-Avionte, Inc., SIA-AX, Inc., SIA-GH, Inc., SIA-MAC, Inc., SIA-PP 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). In February 2022, SIA-GH, Inc., SIA-TT Inc. and SIA-VR, Inc. received an approved plan of liquidation following the sale of equity held by each of the portfolio companies. 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 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. SBIC II LP’s SBIC license provides up to $ 175.0 million in additional long-term capital in the form of SBA debentures. The Company has formed a wholly owned special purpose entity, Saratoga Investment Funding II LLC, a Delaware limited liability company (“SIF II”), for the purpose of entering into a $ 50.0 million senior secured revolving credit facility with Encina Lender Finance, LLC (the “Lender”), supported by loans held by SIF II and pledged to the Lender under the credit facility (the “Encina Credit Facility”). The Encina Credit Facility closed on October 4, 2021. During the first two years following the closing date, SIF II may request an increase in the commitment amount under the Encina Credit Facility to up to $ 75.0 million. The terms of the Encina Credit Facility require a minimum drawn amount of $ 12.5 million at all times during the first six months following the closing date, which increases to the greater of $ 25.0 million or 50 % of the commitment amount in effect at any time thereafter. The term of the Encina Credit Facility is three years. Advances under the Encina Credit Facility bear interest at a floating rate per annum equal to LIBOR plus 4.0 %, with LIBOR having a floor of 0.75 %, with customary provisions related to the selection by the Lender and the Company of a replacement benchmark rate. Concurrently with the closing of the Encina Credit Facility, all remaining amounts outstanding on the Company’s existing revolving credit facility with Madison Capital Funding, LLC were repaid and the revolving credit facility terminated. 19 On October 26, 2021, the Company and TJHA JV I LLC (“TJHA”) entered into a Limited Liability Company Agreement (the “LLC Agreement”) to co-manage Saratoga Senior Loan Fund I JV LLC (“SLF JV”). SLF JV is under joint control and is not consolidated. SLF JV is invested in Saratoga Investment Corp Senior Loan Fund 2021-1 Ltd. (“SLF 2021”), which is a wholly owned subsidiary of SLF JV. SLF 2021 was formed for the purpose of making investments in a diversified portfolio of broadly syndicated first lien and second lien term loans or bonds in the primary and secondary markets. 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 wholly owned special purpose financing subsidiaries, Saratoga Investment Funding, LLC (previously known as GSC Investment Funding LLC), SIF II, SBIC LP, SBIC II LP, SIA-ARC, Inc., SIA-Avionte, Inc., SIA-AX, Inc., SIA-GH, Inc., SIA-MAC, Inc., SIA-PP, Inc., SIA-TG, Inc., SIA-TT Inc. and SIA-Vector, 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 six months ended August 31, 2022. Principles of Consolidation Under the investment company rules and regulations pursuant to ASC Topic 946, the Company is precluded from consolidating any entity other than another investment company. The Company has determined that SLF JV is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. SLF JV is not a wholly-owned investment company subsidiary as the Company and TJHA each have an equal 50 % voting interest in SLF JV and thus neither party has a controlling financial interest. Furthermore, ASC 810 concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate its investment in SLF JV. 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 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 investment company’s total outstanding voting shares; ● we were to hold securities in the investment company having an aggregate value in excess of 5.0 % of the value of our total assets; or ● we were to hold securities in investment companies having an aggregate value in excess of 10.0 % of the value of our total assets. As of August 31, 2022, the Company did not exceed any of these limitations. 20 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 revolving credit facilities. 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 revolving credit facilities. 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 subsidiaries, 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. 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: August 31, 2022 August 31, 2021 Cash and cash equivalents $ 3,068,165 $ 60,268,602 Cash and cash equivalents, reserve accounts 9,579,226 13,040,805 Total cash and cash equivalents and cash and cash equivalents, reserve accounts $ 12,647,391 $ 73,309,407 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 Measurements and Disclosures (“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. 21 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. We use a third-party independent valuation firm to value our investment in the subordinated notes of Saratoga Investment Corp. CLO 2013-1, Ltd. (“Saratoga CLO”) and the Class F-2-R-3 Notes tranche of the Saratoga CLO every quarter. 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. 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 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. The Company’s equity investment in SLF JV is measured using the proportionate share of the net asset value, or equivalent, of SLF JV as a practical expedient for fair value, provided by ASC 820. 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. 22 In December 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted a new rule providing a framework for fund valuation practices. New Rule 2a-5 under the 1940 Act (“Rule 2a-5”) establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit boards of directors, subject to board oversight and certain other conditions, to designate certain parties to perform fair value determinations. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must determine the fair value of a security. The SEC also adopted new Rule 31a-4 under the 1940 Act (“Rule 31a-4”), which provides the recordkeeping requirements associated with fair value determinations. Finally, the SEC is rescinding previously issued guidance on related issues, including the role of the board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, and have a compliance date of September 8, 2022. While our board of directors has not elected to designate Saratoga Investment Advisors as the valuation designee, the Company has adopted certain revisions to its valuation policies and procedures in order comply with the applicable requirements of Rule 2a-5 and Rule 31a-4. 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 August 31, 2022, our investment in one portfolio company was on non-accrual status with a fair value of approximately $ 9.7 million, or 1.0 % of the fair value of our portfolio. At February 28, 2022, there were no investments on non-accrual status. 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. 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. Dividend Income Dividend income is recorded in the consolidated statements of operations when earned. 23 Structuring and Advisory Fee Income Structuring and advisory fee income represents various fee income earned and received for performing certain investment structuring and advisory activities during the closing of new investments. Other Income Other income includes prepayment income fees, and 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 the SBA debentures of SBIC LP and SBIC II LP are deferred and amortized using the straight-line method over the life of the debentures. Any discount or premium on the issuance of any debt is amortized using the effective interest method over the life of the respective debt security. 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. Realized Loss on Extinguishment of Debt Upon the repayment of debt obligations that are deemed to be extinguishments, the difference between the principal amount due at maturity adjusted for any unamortized debt issuance costs is recognized as a loss (i.e., the unamortized debt issuance costs are recognized as a loss upon extinguishment of the underlying debt obligation). 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 reasonably believes 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, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code. By meeting these requirements, the Company will not be subject to corporate federal income taxes on ordinary income or capital gains timely distributed to stockholders. 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 % 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 % on undistributed income if it does not distribute at least (1) 98 % of its net ordinary income in any calendar year, (2) 98.2 % of its capital gain net income for each one-year period ending on October 31 and (3) any net ordinary income and capital gain net income that it recognized for preceding years, but were not distributed during such year, and on which the Company paid no U.S federal income tax. Depending on the level of investment company taxable income earned in a tax year and the amount of net capital gains recognized in such tax year, the Company may choose to carry forward investment company taxable income and net capital gains in excess of current year dividend distributions into the next tax year and pay the 4.0 % U.S. federal excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual investment company taxable income will be in excess of estimated current year dividend distributions for U.S. federal excise tax purposes, the Company accrues the U.S. federal excise tax, if any, on estimated excess taxable income as taxable income is earned. 24 In accordance with U.S. Treasury regulations and published guidance issued by the Internal Revenue Service (“IRS”), a publicly offered RIC may treat a distribution of its own stock as counting toward its RIC distribution requirements if each stockholder elects to receive his, her, or its entire distribution in either cash or stock of the RIC. This published guidance indicates that the rule will apply where the aggregate amount of cash to be distributed to all stockholders is not at least 20.0 % of the aggregate declared distribution. Under the published guidance, if too many stockholders elect to receive cash, the cash available for distribution must be allocated among the stockholders electing to receive 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, 2022, the Company did not incur any interest or penalties. Although we file federal and state tax returns, our major tax jurisdiction is federal. The 2019, 2020, 2021 and 2022 federal tax years for the Company remain subject to examination by the IRS. As of August 31, 2022 and February 28, 2022, 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 some or all of our net 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 by the Company to the Manager on the consolidated statements of assets and liabilities when the net realized and unrealized gain on its investments exceed all net realized and unrealized capital losses on its investments because 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 Manager related to capital gains will be determined and payable in arrears at the end of each fiscal year and only reflected those net realized capital gains net of realized and unrealized losses for the period. 25 Recent 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 Company has agreements that have LIBOR as a reference rate with certain portfolio companies and under the Encina Credit Facility. Many of these agreements (including the credit agreements relating to the Encina Credit Facility) include an alternative successor rate or language for choosing an alternative successor rate when LIBOR reference is no longer considered to be appropriate. With respect to other agreements, the Company intends to work with its portfolio companies to modify agreements to choose an alternative successor rate. Contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. The standard is effective 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. 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. 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 that 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. 26 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 August 31, 2022 (dollars in thousands), according to the fair value hierarchy: Fair Value Measurements Valued Using Net Level 1 Level 2 Level 3 Asset Value* Total First lien term loans $ - $ - $ 793,011 - $ 793,011 Second lien term loans - - 23,662 - 23,662 Unsecured term loans - - 16,841 - 16,841 Structured finance securities - - 32,327 - 32,327 Equity interests - - 82,096 6,727 88,823 Total $ - $ - $ 947,937 $ 6,727 $ 954,664 * The Company’s equity investment in SLF JV is measured using the proportionate share of the net asset value, or equivalent, as a practical expedient and thus has not been classified in the fair value hierarchy. The following table presents fair value measurements of investments, by major class, as of February 28, 2022 (dollars in thousands), according to the fair value hierarchy: Fair Value Measurements Valued Using Net Level 1 Level 2 Level 3 Asset Value* Total First lien term loans $ - $ - $ 631,572 $ - $ 631,572 Second lien term loans - - 44,386 - 44,386 Unsecured loans - - 15,931 - 15,931 Structured finance securities - - 38,030 - 38,030 Equity interests - - 75,632 12,016 87,648 Total $ - $ - $ 805,551 $ 12,016 $ 817,567 * The Company’s equity investment in SLF JV is measured using the proportionate share of the net asset value, or equivalent, as a practical expedient and thus has not been classified in the fair value hierarchy. 27 The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the six months ended August 31, 2022 (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, 2022 $ 631,572 $ 44,386 $ 15,931 $ 38,030 $ 75,632 $ 805,551 Payment-in-kind and other adjustments to cost 160 - - ( 2,160 ) 405 ( 1,595 ) Net accretion of discount on investments 851 ( 17 ) - - - 834 Net change in unrealized appreciation (depreciation) on investments ( 10,606 ) ( 691 ) ( 37 ) ( 3,543 ) ( 1,478 ) ( 16,355 ) Purchases 241,133 4,950 947 - 9,537 256,567 Sales and repayments ( 70,262 ) ( 24,966 ) - - ( 9,944 ) ( 105,172 ) Net realized gain (loss) from investments 163 - - - 7,944 8,107 Balance as of August 31, 2022 $ 793,011 $ 23,662 $ 16,841 $ 32,327 $ 82,096 $ 947,937 Net change in unrealized appreciation (depreciation) for the period relating to those Level 3 assets that were still held by the Company at the end of the period $ ( 10,543 ) $ ( 881 ) $ ( 37 ) $ ( 3,544 ) $ 3,623 $ ( 11,382 ) Purchases, PIK 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 period. Transfers and restructurings, if any, are recognized at the beginning of the period in which they occur. There were no transfers or restructurings in or out of Levels 1, 2 or 3 during the six months ended August 31, 2022. The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the six months ended August 31, 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 28, 2021 $ 440,456 $ 24,930 $ 2,141 $ 49,779 $ 37,007 $ 554,313 Payment-in-kind and other adjustments to cost 389 30 498 658 331 1,906 Net accretion of discount on investments 874 10 - - - 884 Net change in unrealized appreciation (depreciation) on investments 285 73 49 2,499 17,283 20,189 Purchases 173,018 19,825 - - 42,338 235,181 Sales and repayments ( 121,429 ) - - ( 8,360 ) ( 19,998 ) ( 149,787 ) Net realized gain (loss) from investments - - - ( 140 ) 3,551 3,411 Balance as of August 31, 2021 $ 493,593 $ 44,868 $ 2,688 $ 44,436 $ 80,512 $ 666,097 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 period $ 1,790 $ 73 $ 49 $ 2,952 $ 16,605 $ 21,469 28 Transfers and restructurings, if any, are recognized at the beginning of the period in which they occur. There were no transfers or restructurings in or out of Levels 1, 2 or 3 during the six months ended August 31, 2021. The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of August 31, 2022 were as follows (dollars in thousands): Fair Value Valuation Technique Unobservable Input Range Weighted Average* First lien term loans $ 793,011 Market Comparables Market Yield (%) 8.1% - 16.4% 10.7 % Revenue Multiples (x) 3.0x - 8.0x 4.4 x Second lien term loans 23,662 Market Comparables Market Yield (%) 10.0% - 46.5% 26.1 % Unsecured term loans 16,841 Market Comparables Market Yield (%) 10.0% - 25.5% 12.6 % Collateral Value Coverage Net Asset Value 100.0% 100.0 % Structured finance securities 32,327 Discounted Cash Flow Discount Rate (%) 13.0% - 18.0% 16.7 % Recovery Rate (%) 35% - 70% 70.0 % Prepayment Rate (%) 20.0% 20.0 % Equity interests 82,096 Enterprise Value Waterfall EBITDA Multiples (x) 4.0x - 28.6x 9.9 x Revenue Multiples (x) 1.0x - 11.7x 6.1 x Total $ 947,937 * The weighted average in the table above is calculated based on each investment’s fair value weighting, using the applicable unobservable input. The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of February 28, 2022 were as follows (dollars in thousands): Fair Value Valuation Technique Unobservable Input Range Weighted Average* First lien term loans $ 631,572 Market Comparables Market Yield (%) 6.0% - 11.3% 8.4 % Revenue Multiples (x) 3.5x 3.5 x Second lien term loans 44,386 Market Comparables Market Yield (%) 8.9% - 32.9% 15.6 % EBITDA Multiples (x) 7.5x 7.5 x Unsecured term loans 15,931 Market Comparables Market Yield (%) 22.3% 22.3 % Net Asset Value 100.0% 100.0 % Structured finance securities 38,030 Discounted Cash Flow Discount Rate (%) 10.0% - 15.0% 14.2 % Recovery Rate (%) 35.0% - 70.0% 70.0 % Prepayment Rate (%) 20.0% 20.0 % Equity interests 75,632 Enterprise Value Waterfall EBITDA Multiples (x) 4.0x - 14.0x 9.7 x Revenue Multiples (x) 0.5x - 38.3x 4.6 x Third-party bid 100.0% 100.0 % Total $ 805,551 * The weighted average in the table above is calculated based on each investment’s fair value weighting, using the applicable unobservable input. 29 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 third-party bid or market quote in deriving a value, a significant increase (decrease) in the third-party bid or market quote, in isolation, would result in a significantly higher (lower) fair value measurement. The composition of our investments as of August 31, 2022 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 $ 803,082 84.0 % $ 793,011 83.0 % Second lien term loans 29,829 3.1 23,662 2.5 Unsecured term loans 17,051 1.8 16,841 1.8 Structured finance securities 39,489 4.1 32,327 3.4 Equity interests 66,486 7.0 88,823 9.3 Total $ 955,937 100.0 % $ 954,664 100.0 % The composition of our investments as of February 28, 2022 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 $ 631,037 79.3 % $ 631,572 77.3 % Second lien term loans 49,862 6.3 44,386 5.4 Unsecured term loans 16,104 2.0 15,931 1.9 Structured finance securities 41,648 5.2 38,030 4.7 Equity interests 57,597 7.2 87,648 10.7 Total $ 796,248 100.0 % $ 817,567 100.0 % 30 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. 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 August 31, 2022. The inputs at August 31, 2022 for the valuation model include: ● Default rate: 2% ● Recovery rate: 35% -70% ● Discount rate: 13% – 18% ● Prepayment rate: 20% ● Reinvestment rate / price: $97.00 for twelve months; then L+365bps / $99.00 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 August 31, 2022. Hematerra Holdings Company, LLC HemaTerra Holding Company, LLC provides SaaS-based software solutions addressing complex supply chain issues across a variety of medical environments, including blood, plasma, tissue, implants and DNA sample management, to customers in blood centers, hospitals, pharmaceuticals, and law enforcement settings. 31 Buildout, Inc. Buildout, Inc. provides SaaS-based real estate marketing and customer relationship management (“CRM”) software to commercial real estate (“CRE”) brokerages. Buildout provides a suite of software solutions brokers use to manage relationships, efficiently create and distribute marketing materials over a wide variety of channels, including direct mail, multiple listing websites, brokerage website, property specific websites and manage back office functions like commission calculations and broker productivity. Artemis Wax Corp. Artemis Wax Corporation is a U.S. based retail aggregator of European Wax Center (“EWC”) franchise locations with a concentration in the northeast. Founded in 2004, EWC is the largest U.S. body waxing national chain with more than 800 locations across the country. Granite Comfort, LP Granite Comfort, LP provides traditional service and replacement of HVAC / plumbing systems, as well as a rental model that is in the early stages of implementation. Note 4. Investment in 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 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 its aggregate principal amount from approximately $ 300.0 million 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 in 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 in aggregate amount of the Class F notes tranche at par. 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. On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This fourth Saratoga CLO refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. The non-call period was extended to February 2022. 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 of the 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. At August 31, 2021, the outstanding receivable of $ 2.6 million was repaid in full. On August 9, 2021, the Company exchanged its existing $ 17.9 million Class F-R-3 Notes for $ 8.5 million Class F-1-R-3 Notes and $ 9.4 million Class F-2-R-3 Notes at par. On August 11, 2021, the Company sold its Class F-1-R-3 Notes to third parties, resulting in a realized loss of $ 0.1 million. 32 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 three months ended August 31, 2022 and August 31, 2021, we accrued management fee income of $ 0.8 million and $ 0.8 million, respectively, and interest income of $ 0.4 million and $ 1.3 million, respectively, from the subordinated notes of Saratoga CLO. For the six months ended August 31, 2022 and August 31, 2021, we accrued management fee income of $ 1.6 million and $ 1.6 million, respectively, and interest income of $ 1.0 million and $ 2.4 million, respectively, from the subordinated notes of Saratoga CLO. As of August 31, 2022, the aggregate principal amounts of the Company’s investments in the subordinated notes and Class F-2-R-3 Notes of the Saratoga CLO was $ 111.0 million and $ 9.4 million, respectively, which had a corresponding fair value of $ 23.4 million and $ 8.9 million, respectively. 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 August 31, 2022, Saratoga CLO had investments with a principal balance of $ 653.4 million and a weighted average spread over LIBOR of 3.7 % 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 August 31, 2022, the present value of the projected future cash flows of the subordinated notes was approximately $ 23.4 million, using a 18.0 % discount rate. The Company’s total investment in the subordinate notes of Saratoga CLO is $ 57.8 million, which consists of 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 $ 76.1 million, management fees of $ 31.5 million and incentive fees of $ 1.2 million. As of February 28, 2022, the Company determined that the fair value of its investment in the subordinated notes of Saratoga CLO was $ 28.7 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, 2022, the fair value of its investment in the Class F-R-3 Notes was $ 9.4 million. As of February 28, 2022, Saratoga CLO had investments with a principal balance of $ 660.2 million and a weighted average spread over LIBOR of 3.7 % 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, 2022, the present value of the projected future cash flows of the subordinated notes was approximately $ 27.9 million, using a 15.0 % discount rate. Below is certain financial information from the separate financial statements of Saratoga CLO as of August 31, 2022 (unaudited) and February 28, 2022 and for the three and six months ended August 31, 2022 (unaudited) and August 31, 2021 (unaudited). 33 Saratoga Investment Corp. CLO 2013-1, Ltd. Statements of Assets and Liabilities August 31, 2022 February 28, 2022 (unaudited) ASSETS Investments at fair value Loans at fair value (amortized cost of $ 644,334,357 and $ 653,022,265 , respectively) $ 604,030,601 $ 638,929,660 Equities at fair value (amortized cost of $ 0 and $ 0 , respectively) - 33,690 Total investments at fair value (amortized cost of $ 644,334,357 and $ 653,022,265 , respectively) 604,030,601 638,963,350 Cash and cash equivalents 11,877,748 6,171,793 Receivable from open trades 4,213,956 9,152,660 Interest receivable (net of reserve of $ 261,203 and $ 0 , respectively) 2,794,158 2,062,856 Due from affiliate (See Note 7) 25,209 - Prepaid expenses and other assets 56,209 100,067 Total assets $ 622,997,881 $ 656,450,726 LIABILITIES Interest payable $ 3,521,003 $ 1,659,776 Payable from open trades 9,263,750 18,794,627 Accrued base management fee 72,710 72,510 Accrued subordinated management fee 290,841 290,040 Accounts payable and accrued expenses 135,556 58,716 Saratoga Investment Corp. CLO 2013-1, Ltd. Notes: Class A-1-R-3 Senior Secured Floating Rate Notes 357,500,000 357,500,000 Class A-2-R-3 Senior Secured Floating Rate Notes 65,000,000 65,000,000 Class B-FL-R-3 Senior Secured Floating Rate Notes 60,500,000 60,500,000 Class B-FXD-R-3 Senior Secured Fixed Rate Notes 11,000,000 11,000,000 Class C-FL-R-3 Deferrable Mezzanine Floating Rate Notes 26,000,000 26,000,000 Class C-FXD-R-3 Deferrable Mezzanine Fixed Rate Notes 6,500,000 6,500,000 Class D-R-3 Deferrable Mezzanine Floating Rate Notes 39,000,000 39,000,000 Discount on Class D-R-3 Notes ( 256,168 ) ( 268,301 ) Class E-R-3 Deferrable Mezzanine Floating Rate Notes 27,625,000 27,625,000 Discount on Class E-R-3 Notes ( 2,661,304 ) ( 2,787,348 ) Class F-1-R-3 Notes Deferrable Junior Floating Rate Notes 8,500,000 8,500,000 Class F-2-R-3 Notes Deferrable Junior Floating Rate Notes 9,375,000 9,375,000 Deferred debt financing costs ( 1,992,002 ) ( 2,086,928 ) Subordinated Notes 111,000,000 111,000,000 Discount on Subordinated Notes ( 42,091,366 ) ( 44,084,883 ) Total liabilities $ 688,283,020 $ 693,648,209 Commitments and contingencies 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) ( 65,285,389 ) ( 37,197,733 ) Total net assets ( 65,285,139 ) ( 37,197,483 ) Total liabilities and net assets $ 622,997,881 $ 656,450,726 See accompanying notes to financial statements 34 Saratoga Investment Corp. CLO 2013-1, Ltd. Statements of Operations (unaudited) For the three months ended For the six months ended August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 INVESTMENT INCOME Total interest from investments $ 9,176,167 $ 7,866,198 $ 17,321,614 $ 15,613,938 Interest from cash and cash equivalents 6,105 119 6,105 691 Other income 12,108 200,320 115,604 517,377 Total investment income 9,194,380 8,066,637 17,443,323 16,132,006 EXPENSES Interest and debt financing expenses 8,577,449 5,569,557 16,109,813 10,405,734 Base management fee 163,405 162,925 326,598 326,571 Subordinated management fee 653,619 651,697 1,306,390 1,306,283 Professional fees 129,229 109,691 210,393 145,357 Trustee expenses 64,742 121,329 132,828 121,329 Other expense 113,216 54,156 151,305 113,939 Total expenses 9,701,660 6,669,355 18,237,327 12,419,213 NET INVESTMENT INCOME (LOSS) ( 507,280 ) 1,397,282 ( 794,004 ) 3,712,793 REALIZED AND UNREALIZED LOSS ON INVESTMENTS Net realized gain (loss) from investments ( 1,144,858 ) 175,669 ( 1,067,201 ) ( 389,425 ) Net change in unrealized appreciation (depreciation) on investments ( 1,544,463 ) ( 662,095 ) ( 26,226,451 ) ( 1,143,192 ) Net realized and unrealized gain (loss) on investments ( 2,689,321 ) ( 486,426 ) ( 27,293,652 ) ( 1,532,617 ) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ ( 3,196,601 ) $ 910,856 $ ( 28,087,656 ) $ 2,180,176 See accompanying notes to financial statements 35 Saratoga Investment Corp. CLO 2013-1, Ltd. Schedule of Investments August 31, 2022 (unaudited) 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 19TH HOLDINGS GOLF, LLC Consumer goods: Durable Term Loan Loan 1M USD SOFR+ 3.00 % 0.50 % 5.39 % 2/7/2029 $ 500,000 $ 497,718 $ 465,000 888 Acquisitions Limited Hotel, Gaming & Leisure Term Loan B Loan 6M USD SOFR+ 5.25 % 0.00 % 8.28 % 7/8/2028 2,000,000 1,702,661 1,723,340 ADMI Corp. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.27 % 4/30/2025 1,920,276 1,916,024 1,803,734 Adtalem Global Education Inc. Services: Business Term Loan B (02/21) Loan 1M USD LIBOR+ 4.00 % 0.75 % 6.37 % 8/11/2028 1,033,969 1,025,096 1,022,336 Aegis Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 8.41 % 5/9/2025 2,441,552 2,431,668 2,370,747 Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (1/19) Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.13 % 1/4/2026 1,476,058 1,470,109 1,439,156 Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (09/20) Loan 1M USD LIBOR+ 2.75 % 0.75 % 5.13 % 1/4/2026 214,286 212,857 208,929 AHEAD DB Holdings, LLC Services: Business Term Loan (04/21) Loan 3M USD LIBOR+ 3.75 % 0.75 % 6.01 % 10/18/2027 2,970,000 2,878,591 2,891,295 AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense Term Loan B (USD) Loan 6M USD LIBOR+ 3.50 % 1.00 % 5.05 % 1/18/2027 1,462,072 1,457,624 1,430,477 Air Canada Transportation: Consumer Term Loan B (07/21) Loan 3M USD LIBOR+ 3.50 % 0.75 % 6.42 % 8/11/2028 2,000,000 1,851,463 1,930,360 AIS HoldCo, LLC Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.00 % 7.81 % 8/15/2025 4,789,642 4,686,035 4,622,004 Alchemy Copyrights, LLC Media: Diversified & Production Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.50 % 5.37 % 3/10/2028 491,269 488,557 483,900 Alchemy US Holdco 1, LLC Metals & Mining Term Loan Loan 1M USD LIBOR+ 5.50 % 0.00 % 5.60 % 10/10/2025 1,654,803 1,642,240 1,582,819 AlixPartners, LLP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 5.27 % 2/4/2028 246,875 246,389 240,878 Alkermes, Inc. Healthcare & Pharmaceuticals Term Loan B (3/21) Loan 1M USD LIBOR+ 2.50 % 0.50 % 4.88 % 3/12/2026 2,137,039 2,121,720 2,046,214 Allen Media, LLC Media: Diversified & Production Term Loan (7/21) Loan 3M USD SOFR+ 5.50 % 0.00 % 7.70 % 2/10/2027 4,416,858 4,388,245 3,854,812 Alliant Holdings Intermediate, LLC Banking, Finance, Insurance & Real Estate Term Loan B4 Loan 1M USD LIBOR+ 3.50 % 0.50 % 5.88 % 11/5/2027 992,500 991,536 964,710 Allied Universal Holdco LLC Services: Business Term Loan 4/21 Loan 1M USD LIBOR+ 3.75 % 0.50 % 6.27 % 5/12/2028 1,985,000 1,976,181 1,890,971 Altisource Solutions S.a r.l. Banking, Finance, Insurance & Real Estate Term Loan B (03/18) Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.25 % 4/3/2024 1,223,297 1,220,817 1,010,138 Altium Packaging LLC Containers, Packaging & Glass Term Loan (01/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 5.13 % 1/29/2028 493,750 491,725 477,397 American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.50 % 1.00 % 6.88 % 4/6/2024 3,012,861 3,011,294 2,967,668 American Trailer World Corp Automotive Term Loan Loan 1M USD SOFR+ 3.75 % 0.75 % 6.31 % 3/3/2028 1,980,000 1,975,170 1,843,380 AmWINS Group, LLC Banking, Finance, Insurance & Real Estate Term Loan 2/21 Loan 1M USD LIBOR+ 2.25 % 0.75 % 4.77 % 2/17/2028 1,970,012 1,949,039 1,921,214 Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+ 3.75 % 0.00 % 6.00 % 8/11/2025 962,500 960,273 779,625 Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan 3M USD LIBOR+ 2.75 % 1.00 % 5.10 % 12/7/2023 472,625 472,098 374,437 ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 6.00 % 0.75 % 8.52 % 11/19/2027 2,985,000 2,933,021 2,858,138 AP Core Holdings II LLC High Tech Industries Term Loan B2 Loan 1M USD LIBOR+ 5.50 % 0.75 % 8.02 % 9/1/2027 500,000 493,572 472,915 AP Core Holdings II LLC High Tech Industries Term Loan B1 Loan 1M USD LIBOR+ 5.50 % 0.75 % 8.02 % 9/1/2027 1,925,000 1,900,214 1,817,200 APEX GROUP TREASURY LIMITED Banking, Finance, Insurance & Real Estate Term Loan Incremental Loan 1M USD SOFR+ 5.00 % 0.50 % 6.73 % 7/27/2028 500,000 467,500 488,125 APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.00 % 5.02 % 10/1/2026 1,928,237 1,921,239 1,896,305 APLP Holdings Limited Partnership Energy: Electricity Term Loan B (3/21) Loan 3M USD LIBOR+ 3.75 % 1.00 % 6.00 % 5/14/2027 577,859 573,198 571,000 Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.27 % 5/15/2026 2,954,315 2,925,168 2,836,142 Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 (2/21) Loan 1M USD LIBOR+ 3.50 % 0.50 % 5.94 % 3/6/2028 987,500 979,308 948,000 AppLovin Corporation High Tech Industries Term Loan B Loan 3M USD LIBOR+ 3.25 % 0.00 % 5.50 % 8/15/2025 984,694 984,694 964,646 36 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 AppLovin Corporation High Tech Industries Term Loan (10/21) Loan 3M USD LIBOR+ 3.00 % 0.50 % 5.25 % 10/21/2028 1,496,250 1,492,933 1,452,305 Aramark Corporation Services: Consumer Term Loan Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.27 % 1/15/2027 2,331,250 2,274,480 2,269,472 Aramark Corporation Services: Consumer Term Loan B (4/21) Loan 1M USD LIBOR+ 2.50 % 0.00 % 5.02 % 4/1/2028 1,753,715 1,746,448 1,740,562 ARC FALCON I INC. (a) Chemicals, Plastics, & Rubber Delayed Draw Term Loan Loan N/A N/A N/A N/A 9/29/2028 - ( 556 ) ( 7,112 ) ARC FALCON I INC. Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+ 3.75 % 0.50 % 6.27 % 9/23/2028 868,248 864,411 819,774 Arches Buyer Inc. Services: Consumer Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.50 % 5.77 % 12/6/2027 1,484,848 1,476,025 1,399,782 Arctic Glacier U.S.A., Inc. Beverage, Food & Tobacco Term Loan (3/18) Loan 3M USD LIBOR+ 3.50 % 1.00 % 4.51 % 3/20/2024 - 6,733 - Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan 1M USD SOFR+ 4.25 % 0.00 % 6.71 % 10/1/2025 1,926,183 1,922,154 1,880,437 ASP BLADE HOLDINGS, INC. Capital Equipment Term Loan Loan 1M USD LIBOR+ 4.00 % 0.50 % 6.52 % 10/7/2028 99,529 99,091 92,705 Asplundh Tree Expert, LLC Services: Business Term Loan 2/21 Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.27 % 9/7/2027 982,500 978,862 966,947 AssuredPartners Capital, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (2/20) Loan 1M USD LIBOR+ 3.50 % 0.00 % 6.02 % 2/12/2027 994,898 991,383 966,543 Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Incremental Term Loan (7/21) Loan 1M USD LIBOR+ 3.50 % 0.50 % 6.02 % 2/12/2027 990,000 990,000 960,607 Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+ 3.50 % 0.50 % 5.96 % 2/12/2027 498,750 497,674 484,566 ASTRO ONE ACQUISITION CORPORATION Consumer goods: Durable Term Loan Loan 3M USD LIBOR+ 5.50 % 0.75 % 7.75 % 9/15/2028 2,985,000 2,958,780 2,497,460 Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.77 % 12/18/2026 2,979,985 2,970,313 2,724,570 Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B10 Loan 1M USD SOFR+ 4.00 % 0.00 % 6.40 % 8/19/2028 2,000,000 1,900,276 1,863,340 ATHENAHEALTH GROUP INC. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (02/22) Loan N/A N/A N/A N/A 2/15/2029 - - ( 9,783 ) ATHENAHEALTH GROUP INC. Healthcare & Pharmaceuticals Term Loan B (2/22) Loan 1M USD SOFR+ 3.50 % 0.50 % 5.80 % 2/15/2029 1,282,609 1,276,829 1,224,891 Avast Software S.R.O. (Sybil Finance) High Tech Industries Term Loan (Sybil Software) Loan 3M USD LIBOR+ 1.75 % 0.00 % 4.00 % 3/22/2028 1,875,000 1,871,036 1,865,231 Avaya, Inc. Telecommunications Term Loan B1 Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.64 % 12/15/2027 1,755,766 1,748,093 992,008 Avaya, Inc. Telecommunications Term Loan B-2 (2/21) Loan 1M USD LIBOR+ 4.00 % 0.00 % 6.39 % 12/15/2027 1,000,000 1,000,000 559,380 Avison Young (Canada) Inc Services: Business Term Loan Loan 3M USD LIBOR+ 5.75 % 0.00 % 8.00 % 1/31/2026 3,388,438 3,357,091 3,219,016 Avison Young (Canada) Inc Services: Business Term Loan (08/22) Loan 1M USD SOFR+ 7.00 % 0.00 % 9.49 % 1/31/2026 750,000 705,347 716,250 Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3 Loan 1M USD LIBOR+ 1.75 % 0.75 % 4.12 % 1/15/2025 1,000,000 916,194 983,330 Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 (7/21) Loan 1M USD LIBOR+ 2.25 % 0.50 % 4.62 % 12/1/2027 492,500 488,674 483,512 AZURITY PHARMACEUTICALS, INC. Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+ 6.00 % 0.75 % 8.31 % 9/20/2027 487,500 474,379 433,875 B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan 1M USD LIBOR+ 2.50 % 0.00 % 5.02 % 10/10/2026 706,458 702,199 673,121 B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.27 % 11/19/2026 1,462,500 1,434,644 1,418,318 BAKELITE UK INTERMEDIATE LTD. Chemicals, Plastics, & Rubber Term Loan Loan 3M USD SOFR+ 4.00 % 0.50 % 6.16 % 2/1/2029 1,000,000 995,200 955,000 Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 3.50 % 0.50 % 5.88 % 10/14/2027 1,232,550 1,220,752 1,200,196 Bausch Health Companies Inc. Healthcare & Pharmaceuticals Term Loan B (1/22) Loan 1M USD SOFR+ 5.25 % 0.50 % 7.66 % 2/1/2027 2,000,000 1,795,000 1,590,000 BCPE Empire Holdings, Inc. Services: Business Term Loan Amendment 3 Loan 1M USD SOFR+ 4.63 % 0.00 % 7.18 % 6/11/2026 498,750 481,970 482,541 Belfor Holdings Inc. Services: Consumer Term Loan Loan 1M USD LIBOR+ 4.00 % 0.00 % 6.52 % 4/6/2026 246,819 246,653 243,117 37 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 Belfor Holdings Inc. Services: Consumer Term Loan B-2 (3/22) Loan 1M USD SOFR+ 4.25 % 0.50 % 6.71 % 4/6/2026 1,000,000 972,460 985,000 Belron Finance US LLC Automotive Term Loan B (3/21) Loan 3M USD LIBOR+ 2.50 % 0.50 % 5.38 % 4/13/2028 1,975,000 1,958,729 1,942,294 Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Term Loan Loan 1M USD SOFR+ 3.25 % 0.50 % 5.68 % 1/24/2029 2,000,000 1,998,507 1,914,280 Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan (6/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 5.27 % 4/23/2026 1,472,597 1,464,443 1,424,738 Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.77 % 4/23/2026 984,810 979,466 951,573 Blucora, Inc. Services: Consumer Term Loan (11/17) Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.25 % 5/22/2024 2,287,052 2,283,201 2,269,899 Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber Term Loan (2/21) Loan 3M USD LIBOR+ 2.50 % 0.00 % 4.76 % 3/4/2028 987,500 985,520 957,875 Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.52 % 5/24/2027 1,462,549 1,455,033 1,408,801 Boxer Parent Company, Inc. High Tech Industries Term Loan (2/21) Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.12 % 10/2/2025 519,820 519,820 500,675 Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 6.54 % 9/5/2025 962,500 960,298 940,844 BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Term Loan B-3 Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.94 % 3/5/2026 987,500 987,500 954,419 BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.52 % 1/22/2027 2,963,947 2,959,109 2,870,256 Brookfield WEC Holdings Inc. Energy: Electricity Term Loan (1/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 5.27 % 8/1/2025 1,470,075 1,471,797 1,433,147 BROWN GROUP HOLDING, LLC Aerospace & Defense Term Loan B-2 Loan 1M USD SOFR+ 3.75 % 0.00 % 6.21 % 6/8/2029 500,000 487,659 492,410 Buckeye Partners, L.P. Utilities: Oil & Gas Term Loan (1/21) Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.62 % 11/1/2026 1,960,138 1,949,299 1,927,168 BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.50 % 6.02 % 3/31/2028 2,475,000 2,454,497 2,376,000 Callaway Golf Company Retail Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 7.02 % 1/4/2026 678,750 671,259 676,490 Camping World, Inc. Retail Term Loan B (5/21) Loan 1M USD LIBOR+ 2.50 % 0.75 % 4.99 % 6/5/2028 2,500,000 2,263,750 2,332,825 CareerBuilder, LLC Services: Business Term Loan Loan 3M USD LIBOR+ 6.75 % 1.00 % 9.00 % 7/31/2023 5,393,388 5,296,559 3,437,152 CareStream Health, Inc. Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+ 4.00 % 0.00 % 6.52 % 7/18/2026 982,278 975,165 958,949 Casa Systems, Inc Telecommunications Term Loan Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.25 % 12/20/2023 1,383,625 1,380,672 1,170,893 Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.27 % 1/27/2027 1,971,757 1,961,464 1,651,347 CBI BUYER, INC. Consumer goods: Durable Term Loan Loan 1M USD LIBOR+ 3.25 % 0.50 % 5.65 % 1/6/2028 2,984,962 2,816,427 2,703,868 CCC Intelligent Solutions Inc. Services: Business Term Loan B Loan 3M USD LIBOR+ 2.25 % 0.50 % 4.50 % 9/16/2028 248,750 248,206 243,360 CCI Buyer, Inc Telecommunications Term Loan Loan 3M USD SOFR+ 4.00 % 0.75 % 6.05 % 12/17/2027 246,875 244,910 237,000 CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+ 3.75 % 0.75 % 6.01 % 3/5/2028 987,500 983,313 957,875 CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 5.50 % 0.00 % 8.02 % 9/25/2025 2,412,500 2,400,790 2,346,156 CDK GLOBAL, INC. High Tech Industries Term Loan B Loan 3M USD SOFR+ 4.50 % 0.50 % 6.61 % 7/6/2029 1,000,000 970,484 973,470 Cengage Learning, Inc. Media: Advertising, Printing & Publishing Term Loan B (6/21) Loan 6M USD LIBOR+ 4.75 % 1.00 % 7.81 % 7/14/2026 2,977,500 2,953,751 2,808,408 CENTURI GROUP, INC. Construction & Building Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.50 % 5.02 % 8/27/2028 883,330 875,628 859,868 CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.77 % 3/15/2027 3,909,849 3,904,921 3,675,258 Charlotte Buyer, Inc. Services: Business Term Loan B Loan 3M USD SOFR+ 5.25 % 0.00 % 7.98 % 2/3/2028 1,500,000 1,395,658 1,436,250 Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.28 % 4/3/2025 910,346 880,516 886,450 Churchill Downs Incorporated Hotel, Gaming & Leisure Term Loan B1 (3/21) Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.53 % 3/17/2028 493,750 492,743 483,875 CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing USD Term Loan Loan 1M USD LIBOR+ 3.50 % 0.50 % 6.02 % 5/17/2028 1,990,000 1,895,264 1,895,475 CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan 1M USD SOFR+ 2.50 % 0.00 % 5.07 % 2/2/2028 4,937,500 4,933,271 4,823,345 38 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 Clarios Global LP Automotive Term Loan B1 Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.77 % 4/30/2026 1,267,812 1,260,246 1,232,313 Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B-1 (11/21) Loan 1M USD SOFR+ 4.50 % 0.50 % 6.89 % 8/9/2026 3,457,336 3,437,160 3,362,259 CLYDESDALE ACQUISITION HOLDINGS, INC. Containers, Packaging & Glass Term Loan B Loan 1M USD SOFR+ 4.18 % 0.50 % 6.73 % 4/13/2029 1,500,000 1,464,024 1,445,370 Cole Haan Consumer goods: Non-durable Term Loan B Loan 1M USD LIBOR+ 5.50 % 0.00 % 8.02 % 2/7/2025 900,000 895,403 801,000 Columbus McKinnon Corporation Capital Equipment Term Loan (4/21) Loan 3M USD LIBOR+ 2.75 % 0.50 % 5.06 % 5/14/2028 468,182 467,216 461,159 Conduent, Inc. Services: Business Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.50 % 6.77 % 10/16/2028 995,000 986,079 961,001 Connect Finco SARL Telecommunications Term Loan (1/21) Loan 1M USD LIBOR+ 3.50 % 1.00 % 6.03 % 12/11/2026 2,932,500 2,820,172 2,840,859 Consolidated Communications, Inc. Telecommunications Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.75 % 6.00 % 10/2/2027 2,714,005 2,502,915 2,417,174 CORAL-US CO-BORROWER LLC Telecommunications Term Loan B-5 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.64 % 1/31/2028 4,000,000 3,987,745 3,843,000 Corelogic, Inc. Services: Business Term Loan (4/21) Loan 1M USD LIBOR+ 3.50 % 0.50 % 6.02 % 6/2/2028 2,481,250 2,470,591 2,124,570 Cortes NP Acquisition Corp (Vertiv) Capital Equipment Term Loan 2/21 Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.11 % 3/2/2027 1,970,000 1,970,000 1,895,298 COWEN INC. Banking, Finance, Insurance & Real Estate Term Loan Loan 6M USD LIBOR+ 3.25 % 0.00 % 4.63 % 3/24/2028 3,947,443 3,926,096 3,937,575 Creative Artists Agency, LLC Media: Diversified & Production Term Loan B2 (6/22) Loan 1M USD SOFR+ 4.25 % 1.00 % 6.58 % 11/27/2026 500,000 481,849 496,250 CROCS INC Consumer goods: Durable Term Loan Loan 6M USD SOFR+ 3.50 % 0.50 % 4.45 % 2/20/2029 2,992,500 2,876,557 2,876,541 Cross Financial Corp Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan 1M USD LIBOR+ 4.00 % 0.75 % 6.56 % 9/15/2027 495,000 494,516 485,100 Crown Subsea Communications Holding, Inc. Construction & Building Term Loan (4/21) Loan 1M USD LIBOR+ 4.75 % 0.75 % 7.12 % 4/27/2027 2,404,110 2,384,446 2,339,992 CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B (03/17) Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.64 % 7/15/2025 1,923,858 1,911,748 1,860,140 CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.64 % 1/15/2026 482,500 481,950 466,418 CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan 1M USD LIBOR+ 2.50 % 0.00 % 4.89 % 4/15/2027 487,500 487,500 469,321 CTS Midco, LLC High Tech Industries Term Loan B Loan 3M USD LIBOR+ 6.00 % 1.00 % 8.81 % 11/2/2027 1,970,000 1,924,044 1,871,500 Daseke Inc Transportation: Cargo Term Loan 2/21 Loan 1M USD LIBOR+ 4.00 % 0.75 % 6.37 % 3/5/2028 1,481,250 1,475,172 1,433,732 Dave & Buster’s Inc. Hotel, Gaming & Leisure Term Loan B (04/22) Loan 1M USD SOFR+ 5.00 % 0.50 % 7.56 % 6/29/2029 1,000,000 950,693 975,830 DCert Buyer, Inc. High Tech Industries Term Loan Loan 3M USD SOFR+ 4.00 % 0.00 % 6.90 % 10/16/2026 1,477,330 1,477,330 1,435,064 Dealer Tire, LLC Automotive Term Loan B-1 Loan N/A N/A N/A N/A 12/12/2025 - 3,271 - Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.77 % 3/31/2025 6,282,700 6,247,776 6,121,172 DexKo Global, Inc. (Dragon Merger) Automotive Term Loan (9/21) Loan 3M USD LIBOR+ 3.75 % 0.50 % 6.00 % 10/4/2028 997,500 993,803 952,613 Diamond Sports Group, LLC Media: Broadcasting & Subscription 1st Priority Term Loan Loan 1M USD SOFR+ 8.00 % 1.00 % 10.39 % 5/25/2026 344,068 334,615 323,317 Diamond Sports Group, LLC Media: Broadcasting & Subscription Second Lien Term Loan Loan 1M USD SOFR+ 3.25 % 0.00 % 5.64 % 8/24/2026 3,391,925 2,990,484 615,397 DIRECTV FINANCING, LLC Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 5.00 % 0.75 % 7.52 % 8/2/2027 3,730,000 3,698,538 3,561,218 DISCOVERY PURCHASER CORPORATION Chemicals, Plastics, & Rubber Term Loan Loan 1M USD SOFR+ 4.38 % 0.50 % 6.66 % 8/4/2029 1,500,000 1,380,000 1,404,375 Dispatch Acquisition Holdings, LLC Environmental Industries Term Loan B (3/21) Loan 3M USD LIBOR+ 4.25 % 0.75 % 6.50 % 3/25/2028 495,000 490,975 455,400 DOMTAR CORPORATION Forest Products & Paper Term Loan 9/21 Loan 1M USD LIBOR+ 5.50 % 0.75 % 7.88 % 11/30/2028 836,442 828,718 794,101 39 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 DRI HOLDING INC. Media: Advertising, Printing & Publishing Term Loan (12/21) Loan 1M USD LIBOR+ 5.25 % 0.50 % 7.77 % 12/15/2028 3,992,500 3,840,856 3,528,372 DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan (2/21) Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.27 % 3/1/2028 6,435,000 6,393,630 6,187,639 DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.27 % 8/21/2025 3,856,286 3,847,221 3,750,239 EAB Global, Inc. Services: Business Term Loan (08/21) Loan 3M USD LIBOR+ 3.50 % 0.50 % 6.31 % 8/16/2028 995,000 990,615 955,449 Echo Global Logistics, Inc. Services: Business Term Loan Loan 1M USD LIBOR+ 3.50 % 0.50 % 6.02 % 11/23/2028 1,995,000 1,990,717 1,876,298 Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan 1M USD LIBOR+ 3.50 % 0.75 % 6.02 % 4/7/2028 2,199,656 2,192,530 2,106,963 Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.77 % 6/26/2025 1,898,396 1,898,396 1,779,746 ELECTRON BIDCO INC. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 3.00 % 0.50 % 5.52 % 11/1/2028 498,750 496,532 485,503 ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan 1M USD LIBOR+ 6.50 % 0.00 % 9.02 % 12/14/2025 2,175,269 2,112,860 2,113,643 Embecta Corp Healthcare & Pharmaceuticals Term Loan B Loan 3M USD SOFR+ 3.00 % 0.50 % 5.05 % 3/30/2029 618,016 614,508 603,079 Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan (3/21) Loan 1M USD LIBOR+ 5.00 % 0.75 % 9.50 % 3/27/2028 2,335,285 2,327,697 2,034,617 Endure Digital, Inc. High Tech Industries Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.75 % 5.87 % 2/10/2028 2,475,000 2,465,018 2,315,684 Envision Healthcare Corporation Healthcare & Pharmaceuticals Term Loan B (06/18) Loan 2M USD LIBOR+ 3.75 % 0.00 % 6.56 % 10/10/2025 4,819,794 4,815,720 1,247,893 EOS U.S. FINCO LLC Transportation: Cargo Term Loan Loan 1M USD SOFR+ 6.00 % 0.50 % 8.28 % 8/3/2029 1,000,000 920,000 950,000 Equiniti Group PLC Services: Business Term Loan B Loan 3M USD LIBOR+ 4.50 % 0.50 % 6.75 % 12/11/2028 995,000 986,049 975,100 EyeCare Partners, LLC Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 3.75 % 0.00 % 6.00 % 2/18/2027 1,958,020 1,957,907 1,817,454 Finco I LLC Banking, Finance, Insurance & Real Estate Term Loan B (9/20) Loan 1M USD LIBOR+ 2.50 % 0.00 % 5.02 % 6/27/2025 2,830,950 2,826,428 2,798,224 First Brands Group, LLC Automotive 1st Lien Term Loan (3/21) Loan 6M USD SOFR+ 5.00 % 1.00 % 8.37 % 3/30/2027 4,937,500 4,872,354 4,772,390 First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan 3M USD LIBOR+ 2.50 % 0.00 % 4.75 % 2/1/2027 5,173,392 5,159,258 4,942,452 First Student Bidco Inc. Transportation: Consumer Term Loan B Loan 3M USD LIBOR+ 3.00 % 0.50 % 5.23 % 7/21/2028 726,740 722,197 697,671 First Student Bidco Inc. Transportation: Consumer Term Loan C Loan 3M USD LIBOR+ 3.00 % 0.50 % 5.23 % 7/21/2028 269,608 267,922 258,824 Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.77 % 4/18/2025 1,330,058 1,326,257 1,245,826 FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Term Loan (1/20) Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.52 % 7/3/2024 492,308 491,986 484,716 Franchise Group, Inc. Services: Consumer First Out Term Loan Loan 3M USD LIBOR+ 4.75 % 0.75 % 6.50 % 3/10/2026 799,104 793,201 774,467 Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.81 % 8/1/2025 4,331,233 4,314,733 4,255,436 Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.77 % 1/29/2027 1,960,000 1,956,965 1,885,677 Garrett LX III S.a r.l. Automotive Dollar Term Loan Loan 3M USD LIBOR+ 3.25 % 0.50 % 6.06 % 4/30/2028 1,488,750 1,482,578 1,455,253 Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan 3M USD LIBOR+ 3.00 % 0.50 % 5.81 % 12/31/2027 2,341,715 2,326,803 2,296,052 General Nutrition Centers, Inc. Retail Second Lien Term Loan Loan 1M USD LIBOR+ 6.00 % 0.00 % 8.39 % 10/7/2026 365,225 365,225 332,355 Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan 3M USD LIBOR+ 2.00 % 0.00 % 4.25 % 12/30/2026 1,466,250 1,461,603 1,432,922 GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.96 % 8/27/2025 3,093,297 2,685,635 3,041,732 Global Tel*Link Corporation Telecommunications Term Loan B Loan 3M USD LIBOR+ 4.25 % 0.00 % 7.06 % 11/29/2025 4,923,145 4,755,928 4,523,140 40 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 Go Daddy Operating Company, LLC High Tech Industries Term Loan 2/21 Loan 1M USD LIBOR+ 2.00 % 0.00 % 4.37 % 8/10/2027 1,969,849 1,969,849 1,932,501 GOLDEN WEST PACKAGING GROUP LLC Forest Products & Paper Term Loan (11/21) Loan 1M USD LIBOR+ 5.25 % 0.75 % 7.62 % 12/1/2027 1,987,500 1,969,794 1,927,875 Graham Packaging Co Inc Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD LIBOR+ 3.00 % 0.75 % 5.52 % 8/7/2027 967,415 962,087 943,230 Great Outdoors Group, LLC Retail Term Loan B2 Loan 1M USD LIBOR+ 3.75 % 0.75 % 6.27 % 3/6/2028 985,056 980,871 951,564 Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 3M USD LIBOR+ 3.25 % 0.00 % 6.32 % 4/12/2024 2,844,231 2,832,362 2,773,125 Griffon Corporation Consumer goods: Durable Term Loan B Loan 1M USD SOFR+ 2.50 % 0.50 % 4.98 % 1/24/2029 155,625 155,277 151,085 Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Amendment 5 Term Loan Loan 1M USD LIBOR+ 2.50 % 0.50 % 5.02 % 2/24/2028 3,851,241 3,848,423 3,780,224 Harbor Freight Tools USA, Inc. Retail Term Loan B (06/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 5.27 % 10/19/2027 3,456,030 3,436,409 3,294,392 Harland Clarke Holdings Corp. Media: Advertising, Printing & Publishing Term Loan (08/21) Loan 3M USD LIBOR+ 7.75 % 1.00 % 10.00 % 6/16/2026 1,221,522 1,219,887 917,840 Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.27 % 6/3/2024 212,687 212,626 199,187 Hillman Group Inc. (The) (New) (a) Consumer goods: Durable Delayed Draw Term Loan (2/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 5.19 % 7/14/2028 67,004 67,004 41,703 Hillman Group Inc. (The) (New) Consumer goods: Durable Term Loan B-1 (2/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 5.19 % 7/14/2028 3,496,783 3,489,827 3,391,879 HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan 1M USD LIBOR+ 2.50 % 0.00 % 5.02 % 8/18/2025 3,530,000 3,522,471 3,426,324 Holley Purchaser, Inc Automotive Term Loan (11/21) Loan 3M USD LIBOR+ 3.75 % 0.75 % 6.71 % 11/17/2028 2,329,821 2,320,465 2,185,372 Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 1M USD LIBOR+ 3.25 % 0.75 % 5.81 % 11/12/2027 2,163,171 2,154,084 2,104,852 Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan (3/21) Loan 3M USD SOFR+ 3.00 % 0.00 % 6.16 % 3/17/2028 5,925,000 5,876,263 5,451,000 Idera, Inc. High Tech Industries Term Loan (02/21) Loan 1M USD LIBOR+ 3.75 % 0.75 % 6.13 % 3/2/2028 4,835,595 4,825,855 4,660,305 IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/21) Loan 1M USD LIBOR+ 3.75 % 0.50 % 6.27 % 11/1/2028 1,990,000 1,981,214 1,924,091 INDY US BIDCO, LLC Services: Business Term Loan (11/21) Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.27 % 3/6/2028 2,226,922 2,226,557 2,124,862 INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber Term Loan (1/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 5.27 % 1/29/2026 1,990,000 1,931,622 1,938,598 Informatica Inc. High Tech Industries Term Loan B (10/21) Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.31 % 10/27/2028 498,750 498,239 485,658 Ingram Micro Inc. High Tech Industries Term Loan Loan 3M USD LIBOR+ 3.50 % 0.50 % 5.75 % 6/30/2028 1,485,000 1,472,113 1,425,600 Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.52 % 5/1/2024 3,368,401 3,335,107 3,251,349 Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.77 % 2/4/2027 488,750 487,133 478,364 INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable Term Loan 4/21 Loan 6M USD LIBOR+ 5.00 % 0.75 % 7.08 % 4/7/2028 4,197,850 4,178,402 3,211,355 INSTRUCTURE HOLDINGS, INC. High Tech Industries Term Loan B Loan 6M USD LIBOR+ 2.75 % 0.50 % 6.12 % 10/30/2028 498,750 497,660 488,775 Isagenix International, LLC Beverage, Food & Tobacco Term Loan Loan 3M USD LIBOR+ 5.75 % 1.00 % 7.93 % 6/14/2025 2,330,036 2,308,136 1,048,516 Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 5.88 % 3/14/2025 2,941,816 2,926,353 2,741,419 J Jill Group, Inc Retail Priming Term Loan Loan 3M USD LIBOR+ 5.00 % 1.00 % 7.81 % 5/8/2024 1,564,303 1,563,639 1,433,292 Jane Street Group Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.27 % 1/31/2028 3,940,000 3,935,292 3,853,005 Journey Personal Care Corp. Consumer goods: Non-durable Term Loan B Loan 3M USD LIBOR+ 4.25 % 0.75 % 6.50 % 3/1/2028 990,000 985,806 675,675 41 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 JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 8.31 % 11/15/2025 4,019,089 3,995,346 3,223,872 Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Term Loan (1/21) (USD) Loan 6M USD LIBOR+ 4.75 % 0.50 % 5.55 % 2/12/2026 1,481,250 1,476,161 1,356,573 Kodiak BP, LLC Construction & Building Term Loan Loan 3M USD LIBOR+ 3.25 % 0.75 % 5.50 % 3/13/2028 493,750 492,380 469,063 KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan 1M USD LIBOR+ 3.50 % 0.50 % 5.94 % 9/1/2027 493,769 484,453 481,425 Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Third Out PIK Term Loan Loan 3M USD LIBOR+ 1.50 % 1.25 % 4.31 % 9/25/2025 839,106 588,664 693,663 Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan Fixed 0.00 % 0.00 % 13.25 % 9/27/2027 928,253 303,783 595,632 Lealand Finance Company B.V. (d) Energy: Oil & Gas Exit Term Loan Loan 1M USD LIBOR+ 1.00 % 0.00 % 3.52 % 6/30/2025 339,918 339,918 170,809 Learfield Communications, Inc Media: Advertising, Printing & Publishing Initial Term Loan (A-L Parent) Loan 1M USD LIBOR+ 3.25 % 1.00 % 5.78 % 12/1/2023 472,500 472,056 412,001 Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan 1M USD LIBOR+ 3.50 % 1.00 % 6.02 % 2/28/2025 2,616,496 2,598,667 2,524,918 LIGHTSTONE HOLDCO LLC Energy: Electricity Term Loan 5/22 Loan 1M USD SOFR+ 5.75 % 1.00 % 8.05 % 2/1/2027 1,238,581 1,237,866 1,110,301 LIGHTSTONE HOLDCO LLC Energy: Electricity Term Loan C 5/22 Loan 1M USD SOFR+ 5.75 % 1.00 % 8.05 % 2/1/2027 70,053 70,014 62,798 Liquid Tech Solutions Holdings, LLC Services: Business Term Loan Loan 3M USD LIBOR+ 4.75 % 0.00 % 7.00 % 3/17/2028 990,000 986,841 955,350 LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan 1M USD LIBOR+ 4.75 % 0.00 % 7.12 % 8/31/2027 3,940,000 3,882,660 3,057,440 LOYALTY VENTURES INC. Services: Business Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.50 % 7.02 % 11/3/2027 3,214,885 3,197,686 2,322,755 LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.12 % 11/11/2026 1,214,082 1,212,236 1,186,255 LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD SOFR+ 3.50 % 0.50 % 6.07 % 10/16/2028 249,375 248,305 243,530 LSF9 Atlantis Holdings, LLC (A Wireless) Retail Term Loan B Loan 3M USD SOFR+ 7.25 % 0.75 % 9.30 % 3/29/2029 3,000,000 2,903,617 2,917,500 MA FinanceCo LLC High Tech Industries Term Loan B4 Loan 3M USD LIBOR+ 4.25 % 1.00 % 5.92 % 6/5/2025 2,876,682 2,825,841 2,835,344 MAGNITE, INC. Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.75 % 8.07 % 4/28/2028 1,980,000 1,939,001 1,900,800 Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.27 % 8/29/2025 1,317,074 1,317,074 1,281,513 Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan 3M USD LIBOR+ 1.75 % 0.00 % 4.69 % 2/15/2027 250,000 249,611 242,500 Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 7.02 % 2/28/2025 3,374,500 3,355,043 3,251,128 McGraw-Hill Education, Inc. Media: Advertising, Printing & Publishing Term Loan (07/21) Loan 6M USD LIBOR+ 4.75 % 0.50 % 8.32 % 7/28/2028 1,985,000 1,967,344 1,915,525 MedAssets Software Inter Hldg, Inc. High Tech Industries Term Loan (11/21) (USD) Loan 1M USD LIBOR+ 4.00 % 0.50 % 6.49 % 12/18/2028 498,750 495,632 479,423 Mermaid Bidco Inc. High Tech Industries Term Loan B2 Loan 3M USD LIBOR+ 3.50 % 0.75 % 6.30 % 12/22/2027 988,763 985,894 939,324 Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan 3M USD LIBOR+ 2.50 % 0.00 % 4.75 % 3/1/2026 3,361,400 3,348,049 3,293,332 Michaels Companies Inc Retail Term Loan B (Magic Mergeco) Loan 3M USD LIBOR+ 4.25 % 0.75 % 6.50 % 4/8/2028 2,479,975 2,463,197 2,048,310 Milk Specialties Company Beverage, Food & Tobacco Term Loan (6/21) Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.25 % 8/15/2025 3,782,457 3,758,895 3,723,034 MJH Healthcare Holdings, LLC Healthcare & Pharmaceuticals Term Loan B (01/22) Loan 1M USD SOFR+ 3.50 % 0.50 % 6.06 % 1/28/2029 249,375 248,256 236,906 MRC Global Inc. Metals & Mining Term Loan B2 Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.52 % 9/20/2024 350,559 350,285 340,627 MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental) Loan 3M USD LIBOR+ 3.75 % 0.00 % 6.00 % 9/30/2024 2,842,097 2,818,327 2,752,088 NAB Holdings, LLC (North American Bancard) Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan 3M USD SOFR+ 3.00 % 0.50 % 5.20 % 11/23/2028 2,985,000 2,978,402 2,879,898 Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 6.06 % 11/14/2025 3,454,379 3,433,630 3,350,748 42 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 National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan 2/21 Loan 1M USD LIBOR+ 3.75 % 0.75 % 6.28 % 3/2/2028 2,749,967 2,740,611 2,323,722 National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C 2/21 Loan 3M USD LIBOR+ 3.75 % 0.75 % 6.01 % 3/2/2028 87,464 87,111 73,907 NEW ERA CAP, LLC Consumer goods: Durable Term Loan (01/22) Loan 3M USD LIBOR+ 6.00 % 0.75 % 8.46 % 7/13/2027 3,722,402 3,721,366 3,461,834 Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 2.50 % 0.00 % 5.02 % 9/18/2026 724,176 718,006 717,390 Next Level Apparel, Inc. Retail Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 7.86 % 8/9/2024 1,700,340 1,693,877 1,598,320 NM Z Parent Inc (Zep Inc) Construction & Building Term Loan B Loan 6M USD LIBOR+ 2.50 % 0.50 % 3.79 % 9/22/2028 635,250 629,751 628,218 NorthPole Newco S.a.r.l (b) Aerospace & Defense Term Loan Loan Prime+ 7.00 % 0.00 % 12.50 % 3/3/2025 5,348,887 5,074,545 472,467 NortonLifeLock Inc. High Tech Industries Term Loan B Loan 1M USD SOFR+ 2.00 % 0.50 % 4.32 % 1/28/2029 1,500,000 1,492,500 1,453,125 Novae LLC Automotive Term Loan Loan 3M USD SOFR+ 5.00 % 0.75 % 7.73 % 12/22/2028 443,333 443,333 412,300 Novae LLC Automotive Term Loan B Loan 3M USD SOFR+ 5.00 % 0.75 % 7.73 % 12/22/2028 1,551,667 1,537,525 1,443,050 Nuvei Technologies Corp. High Tech Industries US Term Loan Loan 1M USD LIBOR+ 2.50 % 0.50 % 5.02 % 9/29/2025 2,227,500 2,223,636 2,194,088 Olaplex, Inc. Consumer goods: Non-durable Term Loan (2/22) Loan 3M USD SOFR+ 3.75 % 0.50 % 6.39 % 2/23/2029 997,500 995,282 965,081 Organon & Co. Healthcare & Pharmaceuticals Term Loan USD Loan 3M USD LIBOR+ 3.00 % 0.50 % 4.63 % 6/2/2028 2,327,083 2,317,416 2,297,995 Pacific Gas & Electric Utilities: Electric Term Loan Loan 1M USD LIBOR+ 3.00 % 0.50 % 5.56 % 6/18/2025 1,472,456 1,467,485 1,442,094 PACTIV EVERGREEN GROUP HOLDINGS INC. Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.50 % 6.02 % 9/20/2028 992,500 988,180 964,144 Padagis LLC Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.75 % 0.50 % 7.04 % 7/6/2028 941,176 933,049 861,176 Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Term Loan 1/21 Loan 3M USD LIBOR+ 4.50 % 0.50 % 7.31 % 1/7/2028 495,000 492,124 464,889 PATAGONIA HOLDCO LLC Telecommunications Term Loan B Loan 3M USD SOFR+ 5.75 % 0.50 % 8.39 % 8/1/2029 2,000,000 1,641,510 1,691,660 Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan 3M USD LIBOR+ 3.75 % 0.00 % 6.00 % 3/30/2027 488,991 480,942 460,385 PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan 1M USD LIBOR+ 2.50 % 0.00 % 5.02 % 5/29/2026 809,038 806,635 790,382 PEARLS (Netherlands) Bidco B.V. Chemicals, Plastics, & Rubber USD Term Loan (02/22) Loan 1M USD SOFR+ 4.00 % 0.50 % 6.41 % 2/28/2029 997,500 995,328 935,156 PECF USS INTERMEDIATE HOLDING III CORPORATION Environmental Industries Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.50 % 6.77 % 12/15/2028 99,500 99,304 92,460 PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (12/21) Loan 6M USD LIBOR+ 3.25 % 0.00 % 4.92 % 12/29/2028 98,438 98,438 93,509 PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC Healthcare & Pharmaceuticals Term Loan (12/22) Loan 6M USD LIBOR+ 3.25 % 0.50 % 5.08 % 12/29/2028 1,299,375 1,293,429 1,266,891 Penn National Gaming, Inc Hotel, Gaming & Leisure Term Loan B Loan 1M USD SOFR+ 2.75 % 0.50 % 5.31 % 5/3/2029 1,000,000 995,117 979,130 Peraton Corp. Aerospace & Defense Term Loan B Loan 1M USD LIBOR+ 3.75 % 0.75 % 6.27 % 2/1/2028 5,334,084 5,314,731 5,174,061 PHYSICIAN PARTNERS, LLC Healthcare & Pharmaceuticals Term Loan Loan 1M USD SOFR+ 4.00 % 0.50 % 6.56 % 12/23/2028 1,995,000 1,976,571 1,915,200 Pike Corporation Construction & Building Term Loan (8/22) Loan 1M USD SOFR+ 3.50 % 0.00 % 5.81 % 1/21/2028 500,000 487,554 491,250 43 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 Ping Identity Corporation High Tech Industries Term Loan B (11/21) Loan 1M USD SOFR+ 3.75 % 0.50 % 6.31 % 11/22/2028 997,500 992,975 995,006 Pitney Bowes Inc Services: Business Term Loan B Loan 1M USD LIBOR+ 4.00 % 0.00 % 6.38 % 3/17/2028 3,959,975 3,932,460 3,662,977 Plastipak Holdings Inc. Containers, Packaging & Glass Term Loan B (11/21) Loan 1M USD LIBOR+ 2.50 % 0.50 % 5.06 % 12/1/2028 1,931,176 1,922,443 1,884,114 Playtika Holding Corp. High Tech Industries Term Loan B (3/21) Loan 1M USD LIBOR+ 2.75 % 0.00 % 5.27 % 3/13/2028 4,443,750 4,435,527 4,341,011 PMHC II, INC. Chemicals, Plastics, & Rubber Term Loan (02/22) Loan 3M USD SOFR+ 4.25 % 0.50 % 6.98 % 4/21/2029 2,000,000 1,990,636 1,786,120 PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan 6M USD LIBOR+ 3.00 % 0.75 % 5.94 % 12/29/2027 493,750 491,860 481,406 Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+ 4.75 % 0.75 % 7.27 % 2/12/2028 5,431,250 5,381,558 5,023,906 Pre-Paid Legal Services, Inc. Services: Consumer Term Loan (12/21) Loan 1M USD LIBOR+ 3.75 % 0.50 % 6.12 % 12/15/2028 2,992,500 2,969,469 2,908,351 Presidio, Inc. Services: Business Term Loan B (1/20) Loan 1M USD LIBOR+ 3.50 % 0.00 % 6.03 % 1/22/2027 490,000 489,314 481,631 Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan 1M USD LIBOR+ 2.75 % 0.75 % 5.11 % 9/23/2026 3,538,384 3,538,162 3,451,587 PRIORITY HOLDINGS, LLC Services: Consumer Term Loan Loan 3M USD LIBOR+ 5.75 % 1.00 % 8.55 % 4/27/2027 2,970,000 2,944,939 2,889,810 PriSo Acquisition Corporation Construction & Building Term Loan (01/21) Loan 3M USD LIBOR+ 3.25 % 0.75 % 5.53 % 12/28/2027 493,747 491,730 447,458 Project Leopard Holdings, Inc. (NEW) High Tech Industries Term Loan B (06/22) Loan 3M USD SOFR+ 5.25 % 0.50 % 7.83 % 7/20/2029 1,000,000 930,746 932,500 Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.53 % 1/29/2025 478,913 478,045 457,361 PUG LLC Services: Consumer Term Loan B (02/20) Loan 1M USD LIBOR+ 3.50 % 0.00 % 6.02 % 2/12/2027 482,600 480,985 451,835 QUEST BORROWER LIMITED High Tech Industries Term Loan (1/22) Loan 3M USD SOFR+ 4.25 % 0.50 % 6.98 % 2/1/2029 2,000,000 1,981,727 1,812,780 Rackspace Technology Global, Inc. High Tech Industries Term Loan (1/21) Loan 1M USD LIBOR+ 2.75 % 0.75 % 5.62 % 2/15/2028 2,989,962 2,890,155 2,406,501 RealPage, Inc. High Tech Industries Term Loan (04/21) Loan 1M USD LIBOR+ 3.00 % 0.50 % 5.52 % 4/24/2028 992,500 990,556 953,485 Renaissance Learning, Inc. Services: Consumer Term Loan (5/18) Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.77 % 5/30/2025 2,953,757 2,933,719 2,869,309 Rent-A-Center, Inc. Retail Term Loan B2 (9/21) Loan 3M USD LIBOR+ 3.25 % 0.50 % 6.06 % 2/17/2028 1,986,212 1,940,894 1,919,178 Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan 6M USD LIBOR+ 5.50 % 1.00 % 8.84 % 12/20/2024 4,320,757 4,257,864 3,990,392 Resideo Funding Inc. Services: Consumer Term Loan (1/21) Loan 1M USD LIBOR+ 2.25 % 0.50 % 4.66 % 2/11/2028 1,481,250 1,479,017 1,461,816 Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 3M USD LIBOR+ 4.25 % 1.00 % 6.50 % 4/30/2024 3,061,659 3,056,618 2,786,110 Restoration Hardware, Inc. Retail Term Loan (9/21) Loan 1M USD LIBOR+ 2.50 % 0.50 % 5.02 % 10/20/2028 3,479,969 3,472,961 3,198,091 Reynolds Consumer Products LLC Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.27 % 1/29/2027 1,284,432 1,283,585 1,256,534 Reynolds Group Holdings Inc. Containers, Packaging & Glass Term Loan B2 Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.77 % 2/5/2026 3,447,500 3,433,625 3,358,451 Robertshaw US Holding Corp. Consumer goods: Durable Term Loan B Loan 1M USD LIBOR+ 3.50 % 1.00 % 6.06 % 2/28/2025 957,500 956,671 773,478 Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 6.77 % 11/28/2025 2,890,253 2,883,820 2,802,650 Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 6M USD LIBOR+ 3.50 % 1.00 % 5.00 % 6/2/2025 5,590,662 5,559,118 5,279,709 RV Retailer LLC Automotive Term Loan Loan 1M USD SOFR+ 3.75 % 0.75 % 6.15 % 2/8/2028 2,972,569 2,924,056 2,757,057 Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+ 3.00 % 0.75 % 5.56 % 9/1/2027 1,486,187 1,473,540 1,463,894 S&S HOLDINGS LLC Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.50 % 6.74 % 3/10/2028 2,471,231 2,418,699 2,372,382 Sally Holdings LLC Retail Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.78 % 7/5/2024 743,409 742,172 734,734 Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan 1M USD LIBOR+ 3.00 % 0.75 % 5.52 % 4/25/2025 932,499 916,389 911,854 44 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 Schweitzer-Mauduit International, Inc. High Tech Industries Term Loan B Loan 1M USD LIBOR+ 3.75 % 0.75 % 6.31 % 4/20/2028 2,970,000 2,955,834 2,821,500 Scientific Games Holdings LP Hotel, Gaming & Leisure Term Loan B Loan 3M USD SOFR+ 3.50 % 0.50 % 5.62 % 4/4/2029 500,000 498,841 480,905 SETANTA AIRCRAFT LEASING DAC Aerospace & Defense Term Loan Loan 3M USD LIBOR+ 2.00 % 0.00 % 4.25 % 11/2/2028 1,000,000 997,801 981,250 Signify Health, LLC Healthcare & Pharmaceuticals Term Loan B (6/21) Loan 6M USD LIBOR+ 3.25 % 0.50 % 6.13 % 6/16/2028 496,250 494,165 491,288 Sitel Worldwide Corporation Services: Business USD Term Loan (7/21) Loan 3M USD LIBOR+ 3.75 % 0.50 % 6.01 % 8/28/2028 1,985,000 1,976,344 1,941,330 SiteOne Landscape Supply, LLC Services: Business Term Loan (3/21) Loan 1M USD LIBOR+ 2.00 % 0.50 % 4.53 % 3/18/2028 781,811 780,219 771,389 SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan 1M USD LIBOR+ 2.50 % 0.00 % 5.02 % 1/23/2025 487,500 487,500 469,623 Sotheby’s Services: Business Term Loan (7/21) Loan 3M USD LIBOR+ 4.50 % 0.50 % 7.01 % 1/15/2027 3,240,108 3,195,622 3,207,707 Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber Term Loan (04/21) Loan 1M USD LIBOR+ 3.25 % 0.75 % 5.61 % 8/2/2028 1,990,000 1,981,456 1,929,305 Specialty Pharma III Inc. Services: Business Term Loan Loan 1M USD LIBOR+ 4.25 % 0.75 % 6.62 % 3/31/2028 1,985,000 1,968,611 1,855,975 Spectrum Brands, Inc. Consumer goods: Durable Term Loan (2/21) Loan 1M USD LIBOR+ 2.00 % 0.50 % 4.53 % 3/3/2028 493,750 492,765 483,668 Spin Holdco, Inc. Services: Consumer Term Loan 3/21 Loan 3M USD LIBOR+ 4.00 % 0.75 % 5.61 % 3/4/2028 2,962,500 2,948,135 2,777,344 SRAM, LLC Consumer goods: Durable Term Loan (05/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 5.27 % 5/12/2028 3,218,182 3,213,684 3,137,727 SS&C Technologies, Inc. Services: Business Term Loan B3 Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.27 % 4/16/2025 189,131 188,939 184,728 SS&C Technologies, Inc. Services: Business Term Loan B4 Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.27 % 4/16/2025 153,534 153,381 149,960 SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.27 % 4/16/2025 475,005 474,487 463,396 Staples, Inc. Wholesale Term Loan (03/19) Loan 3M USD LIBOR+ 5.00 % 0.00 % 7.78 % 4/16/2026 4,363,910 4,256,362 3,833,214 Stars Group Inc. (The) Hotel, Gaming & Leisure Term Loan Loan 3M USD LIBOR+ 2.25 % 0.00 % 4.50 % 7/21/2026 1,985,000 1,981,427 1,936,209 Storable, Inc High Tech Industries Term Loan B Loan 1M USD SOFR+ 3.50 % 0.50 % 5.96 % 4/17/2028 497,500 496,550 480,088 Superannuation & Investments US LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 3.75 % 0.50 % 6.27 % 12/1/2028 995,000 985,995 975,100 Sylvamo Corporation Forest Products & Paper Term Loan Loan 1M USD LIBOR+ 4.50 % 0.50 % 7.02 % 8/18/2028 866,667 858,991 838,500 Syncsort Incorporated High Tech Industries Term Loan B (10/21) Loan 3M USD LIBOR+ 4.00 % 0.75 % 6.78 % 4/24/2028 2,482,494 2,481,422 2,354,223 Ta TT Buyer LLC Media: Broadcasting & Subscription Term Loan 3/22 Loan 3M USD SOFR+ 5.25 % 0.50 % 7.30 % 4/2/2029 1,000,000 990,263 971,250 Tenable Holdings, Inc. Services: Business Term Loan B (6/21) Loan 6M USD LIBOR+ 2.75 % 0.50 % 5.56 % 7/7/2028 995,000 992,840 960,175 Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+ 5.25 % 1.00 % 7.73 % 7/15/2025 4,405,869 4,342,781 4,264,529 Tenneco Inc Capital Equipment Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.52 % 10/1/2025 1,447,500 1,440,835 1,427,901 Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.52 % 9/27/2024 1,910,000 1,908,542 1,782,870 The Dun & Bradstreet Corporation Services: Business Term Loan Loan 1M USD LIBOR+ 3.25 % 0.00 % 5.74 % 2/6/2026 994,950 993,794 965,598 The Dun & Bradstreet Corporation Services: Business Term Loan B Loan 1M USD SOFR+ 3.25 % 0.00 % 5.71 % 1/18/2029 249,375 247,649 242,934 THE KNOT WORLDWIDE INC. Services: Consumer Term Loan (1/22) Loan 1M USD SOFR+ 4.50 % 0.00 % 7.06 % 12/19/2025 4,869,796 4,864,341 4,811,991 Thor Industries, Inc. Automotive USD Term Loan (3/21) Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.50 % 2/1/2026 2,093,726 2,062,485 2,072,789 TORY BURCH LLC Retail Term Loan Loan 1M USD LIBOR+ 3.00 % 0.50 % 5.52 % 4/15/2028 1,335,959 1,231,261 1,253,570 Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD SOFR+ 3.50 % 0.75 % 5.96 % 8/18/2027 492,500 487,080 434,631 Trans Union LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 2.25 % 0.50 % 4.77 % 12/1/2028 865,968 864,048 848,804 Transdigm, Inc. Aerospace & Defense Term Loan G (02/20) Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.77 % 8/22/2024 4,003,636 4,004,932 3,924,924 TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco Term Loan (03/21) Loan 3M USD LIBOR+ 3.50 % 0.50 % 5.75 % 3/31/2028 1,485,001 1,478,880 1,385,877 Tronox Finance LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.77 % 3/10/2028 346,923 346,213 336,678 45 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 TruGreen Limited Partnership Services: Consumer Term Loan Loan 1M USD LIBOR+ 4.00 % 0.75 % 6.52 % 10/29/2027 959,371 953,452 918,597 Uber Technologies, Inc. Transportation: Consumer Term Loan B (2/21) Loan 3M USD LIBOR+ 3.50 % 0.00 % 6.57 % 2/25/2027 3,927,110 3,892,273 3,868,203 Ultra Clean Holdings, Inc. High Tech Industries Incremental Term Loan 3/21 Loan 1M USD LIBOR+ 3.75 % 0.00 % 6.27 % 8/27/2025 871,705 868,607 857,269 Unimin Corporation Metals & Mining Term Loan (12/20) Loan 3M USD LIBOR+ 4.00 % 1.00 % 6.29 % 7/31/2026 496,815 473,971 476,475 United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan 1M USD SOFR+ 3.25 % 0.00 % 5.82 % 10/22/2025 1,540,259 1,488,565 1,523,732 United Road Services Inc. Transportation: Cargo Term Loan (10/17) Loan 3M USD LIBOR+ 5.75 % 1.00 % 8.82 % 9/1/2024 905,012 900,712 580,683 Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/21) Loan 1M USD LIBOR+ 3.25 % 0.75 % 5.77 % 3/15/2026 2,459,068 2,453,085 2,398,476 Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/22) Loan 3M USD SOFR+ 4.25 % 0.50 % 6.25 % 6/10/2029 250,000 242,635 245,000 Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.00 % 5.52 % 1/20/2028 1,837,793 1,835,485 1,799,659 Vaco Holdings, LLC Services: Business Term Loan (01/22) Loan 3M USD SOFR+ 5.00 % 0.75 % 7.20 % 1/19/2029 248,750 247,642 242,842 Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan 3M USD LIBOR+ 4.00 % 0.00 % 7.00 % 8/20/2025 1,375,175 1,370,807 1,266,880 Vertex Aerospace Services Corp Aerospace & Defense Term Loan (10/21) Loan 1M USD LIBOR+ 3.75 % 0.75 % 6.27 % 12/6/2028 997,500 993,032 982,956 VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan (01/22) Loan 1M USD SOFR+ 3.00 % 0.50 % 5.40 % 1/12/2029 3,100,888 3,093,171 3,014,311 Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (9/21) Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.62 % 9/28/2028 2,868,409 2,859,993 2,832,554 Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan 1M USD LIBOR+ 1.75 % 0.00 % 4.27 % 12/31/2025 902,095 901,690 883,070 Vizient, Inc Healthcare & Pharmaceuticals Term Loan Loan 1M USD SOFR+ 2.25 % 0.50 % 4.65 % 5/16/2029 500,000 495,111 497,190 VM Consolidated, Inc. Construction & Building Term Loan B (3/21) Loan 6M USD LIBOR+ 3.25 % 0.00 % 6.13 % 3/19/2028 2,327,542 2,324,786 2,292,629 Vouvray US Finance LLC High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 5.52 % 3/11/2024 473,750 473,750 422,429 Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G Loan 1M USD LIBOR+ 2.13 % 0.00 % 4.65 % 1/20/2028 1,250,000 1,249,782 1,215,100 Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries Term Loan (3/18) Loan 1M USD LIBOR+ 3.75 % 1.00 % 6.12 % 3/15/2025 487,277 486,224 419,059 Watlow Electric Manufacturing Company High Tech Industries Term Loan B Loan 1M USD LIBOR+ 3.75 % 0.50 % 6.27 % 3/2/2028 2,468,750 2,458,373 2,415,672 West Corporation Telecommunications Term Loan B (Olympus Merger) Loan 1M USD LIBOR+ 4.00 % 1.00 % 6.52 % 10/10/2024 1,066,719 1,035,551 868,522 West Corporation Telecommunications Term Loan B Loan 1M USD LIBOR+ 3.50 % 1.00 % 6.02 % 10/10/2024 2,552,943 2,522,983 2,076,184 WEX Inc. Diversified Financial Services Term Loan B (3/21) Loan 1M USD LIBOR+ 2.25 % 0.00 % 4.77 % 3/31/2028 2,969,962 2,959,565 2,903,138 WildBrain Ltd. Media Term Loan Loan 1M USD LIBOR+ 4.25 % 0.75 % 6.77 % 3/27/2028 1,975,000 1,942,234 1,860,825 WP CITYMD BIDCO LLC Health Care Equipment & Supplies Term Loan B Loan 3M USD LIBOR+ 3.25 % 0.50 % 5.50 % 12/22/2028 7,405,452 7,382,414 7,215,206 Xperi Corporation Software Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 6.02 % 6/8/2028 2,671,319 2,661,232 2,612,897 Zayo Group, LLC Diversified Telecommunication Services Term Loan B Loan 1M USD SOFR+ 4.25 % 0.50 % 6.71 % 3/9/2027 997,500 973,546 935,336 ZEBRA BUYER (Allspring) LLC Real Estate Investment Trusts (REITs) Term Loan B Loan 3M USD LIBOR+ 3.25 % 0.50 % 5.56 % 11/1/2028 884,879 881,117 871,606 Zekelman Industries, Inc. Metals & Mining Term Loan Loan 3M USD LIBOR+ 2.00 % 0.00 % 4.18 % 1/25/2027 965,193 965,193 935,754 Zodiac Pool Solutions Leisure Products Term Loan B Loan 1M USD SOFR+ 2.00 % 0.50 % 4.56 % 1/29/2029 497,500 496,387 483,092 $ 644,334,357 $ 604,030,601 46 Number of Shares Cost Fair Value Cash and cash equivalents U.S. Bank Money Market (c) 11,877,748 $ 11,877,748 $ 11,877,748 Total cash and cash equivalents 11,877,748 $ 11,877,748 $ 11,877,748 (a) All or a portion of this investment has an unfunded commitment as of August 31, 2022 (b) As of August 31, 2022, 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 August 31, 2022. (d) Investments include Payment-in-Kind Interest. LIBOR—London Interbank Offered Rate SOFR - Secured Overnight Financing Rate WIBOR - Warsaw Interbank Offered Rate 1M USD LIBOR—The 1 month USD LIBOR rate as of August 31, 2022 was 2.56%. 3M USD LIBOR—The 3 month USD LIBOR rate as of August 31, 2022 was 3.08%. 6M USD LIBOR—The 6 month USD LIBOR rate as of August 31, 2022 was 3.60%. 12M USD LIBOR - The 12 month USD LIBOR rate as of August 31, 2022 was 4.16%. 3 PL WIBOR - The 3 month PL WIBOR rate as of August 31, 2022 was 7.11%. Daily SOFR- The daily SOFR rate as of August 31, 2022 was 2.29%. 1M SOFR - The 1 month SOFR rate as of August 31, 2022 was 2.28%. 3M SOFR - The 3 month SOFR rate as of August 31, 2022 was 1.68%. Prime—The Prime Rate as of August 31, 2022 was 5.50%. See accompanying notes to consolidated financial statements. 47 Saratoga Investment Corp. CLO 2013-1, Ltd. Schedule of Investments February 28, 2022 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 Fusion Connect Warrant Telecommunications Warrants Equity - - - - - 32,832 - - J Jill Common Stock Retail Common stock Equity - - - - - 2,107 - 33,691 19TH HOLDINGS GOLF, LLC Consumer goods: Durable Term Loan Loan 3M USD SOFR+ 3.25 % 0.50 % 3.75 % 2/7/2029 500,000 497,530 493,750 ADMI Corp. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 2.75 % 0.00 % 2.96 % 4/30/2025 1,930,276 1,925,558 1,892,886 Adtalem Global Education Inc. Services: Business Term Loan B (02/21) Loan 1M USD LIBOR+ 4.50 % 0.75 % 5.25 % 8/11/2028 2,000,000 1,981,559 1,977,920 Aegis Sciences Corporation Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 6.50 % 5/9/2025 2,737,038 2,723,587 2,686,403 Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (1/19) Loan 1M USD LIBOR+ 2.75 % 0.00 % 2.88 % 1/4/2026 1,483,686 1,476,852 1,470,704 Agiliti Health Inc. Healthcare & Pharmaceuticals Term Loan (09/20) Loan 1M USD LIBOR+ 2.75 % 0.75 % 3.50 % 1/4/2026 285,714 283,586 283,571 AHEAD DB Holdings, LLC Services: Business Term Loan (04/21) Loan 3M USD LIBOR+ 3.75 % 0.75 % 4.50 % 10/18/2027 2,985,000 2,885,411 2,962,135 AI Convoy (Luxembourg) S.a.r.l. Aerospace & Defense Term Loan B (USD) Loan 6M USD LIBOR+ 3.50 % 1.00 % 4.50 % 1/18/2027 1,469,671 1,464,591 1,460,485 AIS HoldCo, LLC Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.00 % 5.30 % 8/15/2025 4,789,642 4,670,148 4,705,823 Alchemy Copyrights, LLC Media: Diversified & Production Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.50 % 3.50 % 3/10/2028 493,763 490,886 489,442 Alchemy US Holdco 1, LLC Metals & Mining Term Loan Loan 1M USD LIBOR+ 5.50 % 0.00 % 5.60 % 10/10/2025 1,654,803 1,640,863 1,644,874 AlixPartners, LLP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 3.25 % 2/4/2028 248,125 247,608 245,217 Alkermes, Inc. Healthcare & Pharmaceuticals Term Loan B (3/21) Loan 3M USD LIBOR+ 2.50 % 0.50 % 3.00 % 3/12/2026 2,147,859 2,130,749 2,110,271 Allen Media, LLC Media: Diversified & Production Term Loan (7/21) Loan 3M USD LIBOR+ 5.50 % 0.00 % 5.72 % 2/10/2027 4,439,454 4,407,744 4,412,639 Alliant Holdings I, Inc. Banking, Finance, Insurance & Real Estate Term Loan B4 Loan 1M USD LIBOR+ 3.50 % 0.50 % 4.00 % 11/5/2027 997,500 996,393 987,944 Allied Universal Holdco LLC Services: Business Term Loan 4/21 Loan 3M USD LIBOR+ 3.75 % 0.50 % 4.25 % 5/12/2028 1,995,000 1,985,516 1,966,412 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 1,220,031 1,102,497 Altium Packaging LLC Containers, Packaging & Glass Term Loan (01/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 3.25 % 1/29/2028 496,250 494,097 485,084 American Greetings Corporation Media: Advertising, Printing & Publishing Term Loan Loan 1M USD LIBOR+ 4.50 % 1.00 % 5.50 % 4/6/2024 3,012,861 3,011,323 3,011,355 American Trailer World Corp Automotive Term Loan Loan 1M USD LIBOR+ 3.75 % 0.75 % 4.50 % 3/3/2028 1,990,000 1,984,442 1,954,558 AmeriLife Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.11 % 3/18/2027 1,976,415 1,967,087 1,956,651 AmWINS Group, LLC Banking, Finance, Insurance & Real Estate Term Loan 2/21 Loan 1M USD LIBOR+ 2.25 % 0.75 % 3.00 % 2/17/2028 1,980,006 1,957,163 1,946,900 Anastasia Parent LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+ 3.75 % 0.00 % 3.97 % 8/11/2025 967,500 964,919 832,253 Anchor Glass Container Corporation Containers, Packaging & Glass Term Loan (07/17) Loan 3M USD LIBOR+ 2.75 % 1.00 % 3.75 % 12/7/2023 475,113 474,420 406,882 Anchor Packaging, LLC Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.21 % 7/18/2026 987,342 979,469 972,532 ANI Pharmaceuticals, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 1M USD LIBOR+ 6.00 % 0.75 % 6.75 % 11/19/2027 3,000,000 2,943,100 3,000,000 AP Core Holdings II LLC High Tech Industries Term Loan B1 Loan 1M USD LIBOR+ 5.50 % 0.75 % 6.25 % 9/1/2027 1,975,000 1,947,406 1,965,125 AP Core Holdings II LLC High Tech Industries Term Loan B2 Loan 1M USD LIBOR+ 5.50 % 0.75 % 6.25 % 9/1/2027 500,000 493,024 498,125 APi Group DE, Inc. (J2 Acquisition) Services: Business Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.71 % 10/1/2026 1,950,000 1,942,029 1,927,575 APLP Holdings Limited Partnership Energy: Electricity Term Loan B (3/21) Loan 1M USD LIBOR+ 3.75 % 1.00 % 4.75 % 5/14/2027 828,378 821,051 826,655 48 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 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 2,969,543 2,937,176 2,887,881 Apollo Commercial Real Estate Finance, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 (2/21) Loan 1M USD LIBOR+ 3.50 % 0.50 % 4.00 % 3/6/2028 992,500 983,643 982,575 AppLovin Corporation High Tech Industries Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.46 % 8/15/2025 989,796 989,796 982,066 AppLovin Corporation High Tech Industries Term Loan (10/21) Loan 1M USD LIBOR+ 3.00 % 0.50 % 3.50 % 10/21/2028 1,496,250 1,492,669 1,481,288 Aramark Corporation Services: Consumer Term Loan Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.96 % 1/15/2027 2,331,250 2,268,549 2,279,776 Aramark Corporation Services: Consumer Term Loan B (4/21) Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.71 % 4/1/2028 1,753,715 1,746,008 1,743,491 ARC FALCON I INC. Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+ 3.75 % 0.50 % 4.25 % 9/23/2028 872,611 868,610 855,526 ARC FALCON I INC. (a) Chemicals, Plastics, & Rubber Delayed Draw Term Loan Loan N/A N/A N/A N/A 9/22/2028 - ( 601 ) ( 2,494 ) Arches Buyer Inc. Services: Consumer Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.50 % 3.75 % 12/6/2027 1,500,000 1,490,625 1,473,570 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 3,341,474 3,103,833 Aretec Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.46 % 10/1/2025 2,436,164 2,430,830 2,425,518 ASP BLADE HOLDINGS, INC. Capital Equipment Term Loan Loan 1M USD LIBOR+ 4.00 % 0.50 % 4.50 % 10/7/2028 100,000 99,530 99,542 Asplundh Tree Expert, LLC Services: Business Term Loan 2/21 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.96 % 9/7/2027 987,500 983,579 973,458 AssuredPartners Capital, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (2/20) Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.71 % 2/12/2027 1,000,000 996,250 984,580 Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Incremental Term Loan (7/21) Loan 1M USD LIBOR+ 3.50 % 0.50 % 4.00 % 2/12/2027 995,006 995,006 978,837 Assuredpartners Inc. Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+ 3.50 % 0.50 % 4.00 % 2/12/2027 500,000 498,811 491,875 ASTRO ONE ACQUISITION CORPORATION Consumer goods: Durable Term Loan Loan 1M USD LIBOR+ 5.50 % 0.75 % 6.25 % 9/15/2028 3,000,000 2,971,643 2,968,140 Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B6 Loan 1M USD LIBOR+ 3.13 % 0.00 % 3.33 % 11/3/2023 266,824 266,095 264,767 Asurion, LLC Banking, Finance, Insurance & Real Estate Term Loan B8 Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.46 % 12/18/2026 2,995,112 2,984,120 2,939,882 ATHENAHEALTH GROUP INC. Healthcare & Pharmaceuticals Term Loan B (2/22) Loan 1M USD SOFR+ 3.50 % 0.50 % 4.00 % 2/15/2029 1,282,609 1,276,322 1,269,462 ATHENAHEALTH GROUP INC. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (02/22) Loan N/A N/A N/A N/A 2/15/2029 - - ( 2,228 ) Avast Software S.R.O. (Sybil Finance) High Tech Industries Term Loan (Sybil Software) Loan 3M USD LIBOR+ 2.00 % 0.00 % 2.22 % 3/22/2028 1,925,000 1,920,766 1,916,819 Avaya, Inc. Telecommunications Term Loan B1 Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.44 % 12/15/2027 1,755,766 1,747,367 1,739,859 Avaya, Inc. Telecommunications Term Loan B-2 (2/21) Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.19 % 12/15/2027 1,000,000 1,000,000 988,590 Avison Young (Canada) Inc Services: Business Term Loan Loan 3M USD LIBOR+ 5.75 % 0.00 % 5.97 % 1/31/2026 3,405,995 3,370,219 3,371,935 Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B3 Loan 1M USD LIBOR+ 1.75 % 0.75 % 2.50 % 1/15/2025 1,000,000 900,020 990,630 Avolon TLB Borrower 1 (US) LLC Capital Equipment Term Loan B5 (7/21) Loan 1M USD LIBOR+ 2.25 % 0.50 % 2.75 % 12/1/2027 495,000 490,860 491,466 AZURITY PHARMACEUTICALS, INC. Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+ 6.00 % 0.75 % 6.75 % 9/20/2027 500,000 485,751 495,000 B&G Foods, Inc. Beverage, Food & Tobacco Term Loan Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.71 % 10/10/2026 706,458 701,732 701,605 B.C. Unlimited Liability Co (Burger King) Beverage, Food & Tobacco Term Loan B4 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.96 % 11/19/2026 1,470,000 1,438,969 1,440,968 BAKELITE UK INTERMEDIATE LTD. Chemicals, Plastics, & Rubber Term Loan Loan 3M USD SOFR+ 4.25 % 0.00 % 4.75 % 2/1/2029 1,000,000 995,000 992,500 Baldwin Risk Partners, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 3.50 % 0.50 % 4.00 % 10/14/2027 1,238,775 1,225,981 1,222,522 Belfor Holdings Inc. Services: Consumer Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.96 % 4/6/2026 248,092 247,897 246,851 Belron Finance US LLC Automotive Term Loan B (3/21) Loan 3M USD LIBOR+ 2.75 % 0.50 % 3.25 % 4/13/2028 1,985,000 1,967,341 1,968,247 49 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 Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Term Loan Loan 3M USD SOFR+ 3.25 % 0.50 % 3.75 % 1/24/2029 1,890,909 1,889,030 1,873,191 Bengal Debt Merger Sub LLC Beverage, Food & Tobacco Delayed Draw Term Loan Loan 3M USD SOFR+ 3.25 % 0.50 % 3.75 % 1/24/2029 109,091 109,048 108,069 Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.46 % 4/23/2026 989,873 983,805 967,601 Blackstone Mortgage Trust, Inc. Banking, Finance, Insurance & Real Estate Term Loan (6/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 3.25 % 4/23/2026 1,480,053 1,470,897 1,464,335 Blucora, Inc. Services: Consumer Term Loan (11/17) Loan 3M USD LIBOR+ 4.00 % 1.00 % 5.00 % 5/22/2024 2,443,339 2,437,898 2,437,230 Blue Tree Holdings, Inc. Chemicals, Plastics, & Rubber Term Loan (2/21) Loan 3M USD LIBOR+ 2.50 % 0.00 % 2.72 % 3/4/2028 992,500 990,307 983,200 Bombardier Recreational Products, Inc. Consumer goods: Durable Term Loan (1/20) Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.21 % 5/24/2027 1,470,049 1,461,460 1,442,486 Boxer Parent Company, Inc. High Tech Industries Term Loan (2/21) Loan 3M USD LIBOR+ 3.75 % 0.00 % 3.97 % 10/2/2025 522,846 522,846 516,310 Bracket Intermediate Holding Corp Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.25 % 0.00 % 4.47 % 9/5/2025 967,500 964,897 959,034 BrightSpring Health Services (Phoenix Guarantor) Healthcare & Pharmaceuticals Term Loan B-3 Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.66 % 3/5/2026 992,500 992,500 980,342 BroadStreet Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B3 Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.21 % 1/22/2027 2,979,108 2,973,591 2,930,697 Brookfield WEC Holdings Inc. Energy: Electricity Term Loan (1/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 3.25 % 8/1/2025 1,477,538 1,479,743 1,453,528 Buckeye Partners, L.P. Utilities: Oil & Gas Term Loan (1/21) Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.36 % 11/1/2026 1,970,088 1,958,262 1,946,565 BW Gas & Convenience Holdings LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.50 % 4.00 % 3/31/2028 2,487,500 2,465,358 2,475,063 Callaway Golf Company Retail Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.00 % 4.71 % 1/4/2026 682,500 673,958 681,005 CareerBuilder, LLC Services: Business Term Loan Loan 3M USD LIBOR+ 6.75 % 1.00 % 7.75 % 7/31/2023 5,393,388 5,246,921 4,159,650 CareStream Health, Inc. Healthcare & Pharmaceuticals Term Loan Loan 6M USD LIBOR+ 6.75 % 1.00 % 7.75 % 5/8/2023 2,184,163 2,181,757 2,184,163 Casa Systems, Inc Telecommunications Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 5.00 % 12/20/2023 1,391,125 1,387,217 1,349,391 Castle US Holding Corporation Media: Advertising, Printing & Publishing Term Loan B (USD) Loan 3M USD LIBOR+ 3.75 % 0.00 % 3.97 % 1/27/2027 1,980,130 1,968,915 1,934,864 CBI BUYER, INC. Consumer goods: Durable Term Loan Loan 3M USD LIBOR+ 3.25 % 0.50 % 3.75 % 1/6/2028 995,000 992,948 963,906 CCC Intelligent Solutions Inc. Services: Business Term Loan B Loan 3M USD LIBOR+ 2.50 % 0.50 % 3.00 % 9/16/2028 250,000 249,432 246,875 CCI Buyer, Inc Telecommunications Term Loan Loan 3M USD LIBOR+ 3.75 % 0.75 % 4.50 % 12/17/2027 248,125 246,017 245,257 CCRR Parent, Inc. Healthcare & Pharmaceuticals Term Loan B Loan 3M USD LIBOR+ 3.75 % 0.75 % 4.50 % 3/5/2028 992,500 988,070 986,297 CCS-CMGC Holdings, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 5.50 % 0.00 % 5.71 % 9/25/2025 2,425,000 2,412,003 2,371,456 Cengage Learning, Inc. Media: Advertising, Printing & Publishing Term Loan B (6/21) Loan 6M USD LIBOR+ 4.75 % 1.00 % 5.75 % 7/14/2026 2,992,500 2,966,179 2,985,019 CENTURI GROUP, INC. Construction & Building Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.50 % 3.00 % 8/27/2028 931,998 923,210 923,647 CenturyLink, Inc. Telecommunications Term Loan B (1/20) Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.46 % 3/15/2027 3,929,899 3,924,411 3,823,045 Chemours Company, (The) Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.96 % 4/3/2025 915,661 880,331 896,780 Churchill Downs Incorporated Hotel, Gaming & Leisure Term Loan B1 (3/21) Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.21 % 3/17/2028 496,250 495,147 489,427 CIMPRESS PUBLIC LIMITED COMPANY Media: Advertising, Printing & Publishing USD Term Loan Loan 1M USD LIBOR+ 3.50 % 0.50 % 4.00 % 5/17/2028 995,000 986,097 987,538 CITADEL SECURITIES LP Banking, Finance, Insurance & Real Estate Term Loan B (01/21) Loan 1M USD SOFR+ 2.50 % 0.00 % 2.69 % 2/2/2028 4,962,500 4,957,863 4,911,089 Clarios Global LP Automotive Term Loan B1 Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.46 % 4/30/2026 1,267,812 1,259,559 1,253,549 50 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 Claros Mortgage Trust, Inc Banking, Finance, Insurance & Real Estate Term Loan B-1 (11/21) Loan 1M USD SOFR+ 4.50 % 0.50 % 5.00 % 8/9/2026 3,474,709 3,452,852 3,457,336 Cole Haan Consumer goods: Non-durable Term Loan B Loan 3M USD LIBOR+ 5.50 % 0.00 % 6.01 % 2/7/2025 925,000 919,273 811,688 Columbus McKinnon Corporation Capital Equipment Term Loan (4/21) Loan 3M USD LIBOR+ 2.75 % 0.50 % 3.25 % 5/14/2028 487,192 486,099 482,929 Compass Power Generation, LLC Utilities: Electric Term Loan B (08/18) Loan 1M USD LIBOR+ 3.50 % 1.00 % 4.50 % 12/20/2024 1,707,152 1,704,898 1,686,120 Conduent, Inc. Services: Business Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.50 % 4.75 % 10/16/2028 1,000,000 990,409 990,310 Connect Finco SARL Telecommunications Term Loan (1/21) Loan 1M USD LIBOR+ 3.50 % 1.00 % 4.50 % 12/11/2026 2,947,500 2,823,770 2,906,972 Consolidated Communications, Inc. Telecommunications Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.75 % 4.25 % 10/2/2027 714,005 705,262 704,187 CORAL-US CO-BORROWER LLC Telecommunications Term Loan B-5 Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.44 % 1/31/2028 4,000,000 3,986,739 3,914,280 CoreCivic, Inc. Banking, Finance, Insurance & Real Estate Term Loan (12/19) Loan 1M USD LIBOR+ 4.50 % 1.00 % 5.50 % 12/18/2024 1,872,727 1,852,319 1,857,127 Corelogic, Inc. Services: Business Term Loan (4/21) Loan 1M USD LIBOR+ 3.50 % 0.50 % 4.00 % 6/2/2028 2,493,750 2,482,238 2,459,461 Cortes NP Acquisition Corp (Vertiv) Capital Equipment Term Loan 2/21 Loan 1M USD LIBOR+ 2.75 % 0.00 % 2.86 % 3/2/2027 1,980,000 1,980,000 1,913,175 COWEN INC. Banking, Finance, Insurance & Real Estate Term Loan Loan 6M USD LIBOR+ 3.25 % 0.00 % 4.00 % 3/24/2028 3,967,481 3,944,804 3,898,050 CROCS INC Consumer goods: Durable Term Loan Loan 3M USD SOFR+ 3.50 % 0.50 % 4.03 % 1/26/2029 1,000,000 995,000 987,500 Cross Financial Corp Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan 6M USD LIBOR+ 4.00 % 0.75 % 4.81 % 9/15/2027 497,500 497,013 495,634 Crown Subsea Communications Holding, Inc. Construction & Building Term Loan (4/21) Loan 1M USD LIBOR+ 4.75 % 0.75 % 5.50 % 4/27/2027 2,404,110 2,382,506 2,402,114 CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B (03/17) Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.44 % 7/15/2025 1,934,010 1,919,923 1,873,263 CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.44 % 1/15/2026 485,000 484,359 469,946 CSC Holdings LLC (Neptune Finco Corp.) Media: Broadcasting & Subscription Term Loan B-5 Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.69 % 4/15/2027 490,000 490,000 475,035 CTS Midco, LLC High Tech Industries Term Loan B Loan 3M USD LIBOR+ 6.00 % 1.00 % 7.00 % 11/2/2027 1,980,000 1,929,799 1,952,775 Daseke Inc Transportation: Cargo Term Loan 2/21 Loan 1M USD LIBOR+ 4.00 % 0.75 % 4.75 % 3/5/2028 1,488,750 1,482,131 1,473,863 DCert Buyer, Inc. High Tech Industries Term Loan Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.21 % 10/16/2026 1,484,887 1,484,887 1,477,046 Dealer Tire, LLC Automotive Term Loan B-1 Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.46 % 12/12/2025 2,940,000 2,935,370 2,926,211 Delek US Holdings, Inc. Utilities: Oil & Gas Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.46 % 3/31/2025 6,315,361 6,274,862 6,148,699 DexKo Global, Inc. (Dragon Merger) Automotive Term Loan (9/21) Loan 3M USD LIBOR+ 3.75 % 0.50 % 4.25 % 10/4/2028 840,000 836,119 828,450 DexKo Global, Inc. (Dragon Merger) (a) Automotive Delayed Draw Term Loan (9/21) Loan 3M USD LIBOR+ 3.75 % 0.50 % 4.25 % 10/4/2028 130,905 134,906 132,706 Diamond Sports Group, LLC (b) Media: Broadcasting & Subscription Term Loan Loan Prime+ 2.25 % 0.00 % 5.50 % 8/24/2026 3,408,970 2,964,398 1,264,728 DIRECTV FINANCING, LLC Media: Broadcasting & Subscription Term Loan Loan 3M USD LIBOR+ 5.00 % 0.75 % 5.75 % 8/2/2027 3,910,000 3,874,543 3,896,823 Dispatch Acquisition Holdings, LLC Environmental Industries Term Loan B (3/21) Loan 3M USD LIBOR+ 4.25 % 0.75 % 5.00 % 3/25/2028 497,500 493,121 493,769 DOMTAR CORPORATION Forest Products & Paper Term Loan 9/21 Loan 1M USD LIBOR+ 5.50 % 0.75 % 6.25 % 11/30/2028 840,645 832,557 837,140 DRI HOLDING INC. Media: Advertising, Printing & Publishing Term Loan (12/21) Loan 1M USD LIBOR+ 5.25 % 0.50 % 5.75 % 12/15/2028 3,000,000 2,970,701 2,944,500 51 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 DRW Holdings, LLC Banking, Finance, Insurance & Real Estate Term Loan (2/21) Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.96 % 3/1/2028 6,500,000 6,454,552 6,467,500 DTZ U.S. Borrower, LLC Construction & Building Term Loan Loan 1M USD LIBOR+ 2.75 % 0.00 % 2.96 % 8/21/2025 3,876,012 3,865,362 3,838,880 EAB Global, Inc. Services: Business Term Loan (08/21) Loan 6M USD LIBOR+ 3.50 % 0.50 % 4.00 % 8/16/2028 1,000,000 995,320 989,250 Echo Global Logistics, Inc. Services: Business Term Loan Loan 1M USD LIBOR+ 3.75 % 0.50 % 4.25 % 11/23/2028 2,000,000 1,995,444 1,978,500 Edelman Financial Group Inc., The Banking, Finance, Insurance & Real Estate Term Loan B (3/21) Loan 1M USD LIBOR+ 3.50 % 0.75 % 4.25 % 4/7/2028 2,210,766 2,203,181 2,190,603 Electrical Components Inter., Inc. Capital Equipment Term Loan (6/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.46 % 6/26/2025 1,903,934 1,903,934 1,874,575 ELECTRON BIDCO INC. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 3.25 % 0.50 % 3.75 % 11/1/2028 500,000 497,610 494,455 ELO Touch Solutions, Inc. Media: Diversified & Production Term Loan (12/18) Loan 1M USD LIBOR+ 6.50 % 0.00 % 6.71 % 12/14/2025 2,341,935 2,266,272 2,334,137 Embecta Corp Healthcare & Pharmaceuticals Term Loan B Loan 3M USD SOFR+ 3.00 % 0.50 % 3.50 % 1/26/2029 750,000 746,250 742,688 Endo Luxembourg Finance Company I S.a.r.l. Healthcare & Pharmaceuticals Term Loan (3/21) Loan 3M USD LIBOR+ 5.00 % 0.75 % 5.75 % 3/27/2028 2,347,110 2,338,792 2,264,421 Endure Digital, Inc. High Tech Industries Term Loan B Loan 6M USD LIBOR+ 3.50 % 0.75 % 4.25 % 2/10/2028 2,487,500 2,476,721 2,394,219 Enterprise Merger Sub Inc. Healthcare & Pharmaceuticals Term Loan B (06/18) Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.96 % 10/10/2025 4,850,000 4,844,205 3,516,638 Equiniti Group PLC Services: Business Term Loan B Loan 3M USD LIBOR+ 4.50 % 0.50 % 5.00 % 12/11/2028 500,000 495,392 497,085 EyeCare Partners, LLC Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 3.75 % 0.00 % 3.97 % 2/18/2027 1,967,959 1,967,595 1,945,820 Finco I LLC Banking, Finance, Insurance & Real Estate Term Loan B (9/20) Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.71 % 6/27/2025 3,793,978 3,787,136 3,743,708 First Brands Group, LLC Automotive 1st Lien Term Loan (3/21) Loan 3M USD LIBOR+ 5.00 % 1.00 % 6.00 % 3/30/2027 4,962,500 4,891,260 4,925,281 First Eagle Investment Management Banking, Finance, Insurance & Real Estate Refinancing Term Loan Loan 3M USD LIBOR+ 2.50 % 0.00 % 2.72 % 2/1/2027 5,200,639 5,184,839 5,109,628 First Student Bidco Inc. Transportation: Consumer Term Loan B Loan 3M USD LIBOR+ 3.00 % 0.50 % 3.50 % 7/21/2028 730,392 725,495 719,663 First Student Bidco Inc. Transportation: Consumer Term Loan C Loan 3M USD LIBOR+ 3.00 % 0.50 % 3.50 % 7/21/2028 269,608 267,800 265,647 Fitness International, LLC (LA Fitness) Services: Consumer Term Loan B (4/18) Loan 3M USD LIBOR+ 3.25 % 1.00 % 4.25 % 4/18/2025 1,330,058 1,325,610 1,235,292 FOCUS FINANCIAL PARTNERS, LLC Banking, Finance, Insurance & Real Estate Term Loan (1/20) Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.21 % 7/3/2024 494,872 494,493 488,122 Franchise Group, Inc. Services: Consumer First Out Term Loan Loan 3M USD LIBOR+ 4.75 % 0.75 % 5.50 % 3/10/2026 815,445 808,696 813,406 Franklin Square Holdings, L.P. Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.50 % 8/1/2025 4,353,736 4,335,125 4,310,199 Froneri International (R&R Ice Cream) Beverage, Food & Tobacco Term Loan B-2 Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.46 % 1/29/2027 1,970,000 1,966,736 1,927,428 Garrett LX III S.a r.l. Automotive Dollar Term Loan Loan 3M USD LIBOR+ 3.25 % 0.50 % 3.75 % 4/28/2028 1,496,250 1,489,649 1,470,066 Gemini HDPE LLC Chemicals, Plastics, & Rubber Term Loan B (12/20) Loan 3M USD LIBOR+ 3.00 % 0.50 % 3.50 % 12/31/2027 2,392,656 2,376,261 2,370,715 General Nutrition Centers, Inc. (d) Retail Second Lien Term Loan Loan 1M USD LIBOR+ 6.00 % 0.00 % 6.11 % 10/7/2026 376,605 376,605 351,342 Genesee & Wyoming, Inc. Transportation: Cargo Term Loan (11/19) Loan 3M USD LIBOR+ 2.00 % 0.00 % 2.22 % 12/30/2026 1,473,750 1,468,685 1,451,305 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 3,922,786 3,717,418 3,615,828 GGP Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.71 % 8/27/2025 3,775,280 3,197,869 3,684,031 Gigamon Inc. Services: Business Term Loan B Loan 6M USD LIBOR+ 3.50 % 0.75 % 4.25 % 12/27/2024 2,900,607 2,887,935 2,889,730 Global Business Travel (GBT) III Inc. Hotel, Gaming & Leisure Term Loan Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.71 % 8/13/2025 4,353,750 4,353,165 4,065,314 52 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 Global Tel*Link Corporation Telecommunications Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.46 % 11/29/2025 4,938,649 4,748,435 4,788,959 Go Daddy Operating Company, LLC High Tech Industries Term Loan 2/21 Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.21 % 8/10/2027 1,979,899 1,979,899 1,948,657 Go Wireless Holdings, Inc. Telecommunications Term Loan Loan 1M USD LIBOR+ 6.50 % 1.00 % 7.50 % 12/22/2024 2,846,753 2,824,354 2,828,961 GOLDEN WEST PACKAGING GROUP LLC Forest Products & Paper Term Loan (11/21) Loan 1M USD LIBOR+ 5.25 % 0.75 % 6.00 % 11/23/2027 2,000,000 1,980,672 1,980,000 Graham Packaging Co Inc Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD LIBOR+ 3.00 % 0.75 % 3.75 % 8/7/2027 972,314 966,607 961,647 Great Outdoors Group, LLC Retail Term Loan B2 Loan 3M USD LIBOR+ 3.75 % 0.75 % 4.50 % 3/6/2028 990,019 985,574 984,079 Greenhill & Co., Inc. Banking, Finance, Insurance & Real Estate Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.46 % 4/12/2024 2,844,231 2,829,223 2,826,454 Griffon Corporation Consumer goods: Durable Term Loan B Loan 3M USD SOFR+ 2.75 % 0.50 % 3.27 % 1/24/2029 250,000 249,378 248,063 Grosvenor Capital Management Holdings, LLLP Banking, Finance, Insurance & Real Estate Amendment 5 Term Loan Loan 1M USD LIBOR+ 2.50 % 0.50 % 3.00 % 2/24/2028 3,870,741 3,867,368 3,845,581 Harbor Freight Tools USA, Inc. Retail Term Loan B (06/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 3.25 % 10/19/2027 3,473,618 3,452,200 3,414,393 Harland Clarke Holdings Corp. Media: Advertising, Printing & Publishing Term Loan (08/21) Loan 3M USD LIBOR+ 7.75 % 1.00 % 8.75 % 6/16/2026 1,262,555 1,260,655 1,121,149 Helix Gen Funding, LLc Energy: Electricity Term Loan B (02/17) Loan 1M USD LIBOR+ 3.75 % 1.00 % 4.75 % 6/3/2024 226,716 226,626 218,895 Hillman Group Inc. (The) (New) Consumer goods: Durable Term Loan B-1 (2/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 3.25 % 7/14/2028 3,514,399 3,506,291 3,471,101 Hillman Group Inc. (The) (New) (a) Consumer goods: Durable Delayed Draw Term Loan (2/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 3.25 % 7/14/2028 67,342 67,342 56,947 HLF Financing SARL (Herbalife) Consumer goods: Non-durable Term Loan B (08/18) Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.71 % 8/18/2025 3,550,000 3,541,488 3,505,625 Holley Purchaser, Inc Automotive Term Loan (11/21) Loan 3M USD LIBOR+ 3.75 % 0.75 % 4.50 % 11/17/2028 2,137,500 2,127,187 2,117,899 Holley Purchaser, Inc (a) Automotive Delayed Draw Term Loan Loan 3M USD LIBOR+ 3.75 % 0.75 % 4.50 % 11/17/2028 106,875 106,875 103,602 Howden Group Holdings Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 1M USD LIBOR+ 3.25 % 0.75 % 4.00 % 11/12/2027 2,174,152 2,164,312 2,148,192 Hudson River Trading LLC Banking, Finance, Insurance & Real Estate Term Loan (3/21) Loan 1M USD SOFR+ 3.00 % 0.00 % 3.30 % 3/17/2028 5,955,000 5,902,173 5,843,344 Idera, Inc. High Tech Industries Term Loan (02/21) Loan 6M USD LIBOR+ 3.75 % 0.75 % 4.50 % 3/2/2028 4,860,079 4,848,914 4,811,478 IMA Financial Group, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/21) Loan 1M USD LIBOR+ 3.75 % 0.50 % 4.25 % 11/1/2028 2,000,000 1,990,546 1,973,760 INDY US BIDCO, LLC Services: Business Term Loan (11/21) Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.96 % 3/6/2028 2,238,141 2,237,925 2,221,355 INEOS US PETROCHEM LLC Chemicals, Plastics, & Rubber Term Loan (1/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 3.25 % 1/29/2026 995,000 991,113 983,189 Informatica Inc. High Tech Industries Term Loan B (10/21) Loan 1M USD LIBOR+ 2.75 % 0.00 % 3.00 % 10/27/2028 500,000 499,441 493,440 Ingram Micro Inc. High Tech Industries Term Loan Loan 3M USD LIBOR+ 3.50 % 0.50 % 4.00 % 6/30/2028 1,492,500 1,478,709 1,483,172 Inmar Acquisition Sub, Inc. Services: Business Term Loan B Loan 3M USD LIBOR+ 4.00 % 1.00 % 5.00 % 5/1/2024 3,386,129 3,343,519 3,356,501 Innophos, Inc. Chemicals, Plastics, & Rubber Term Loan B Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.96 % 2/4/2027 491,250 489,509 487,973 INSTANT BRANDS HOLDINGS INC. Consumer goods: Durable Term Loan 4/21 Loan 3M USD LIBOR+ 5.00 % 0.75 % 5.75 % 4/7/2028 4,368,033 4,346,269 4,018,591 INSTRUCTURE HOLDINGS, INC. High Tech Industries Term Loan B Loan 3M USD LIBOR+ 2.75 % 0.50 % 3.27 % 10/21/2028 500,000 498,797 492,500 Isagenix International, LLC Beverage, Food & Tobacco Term Loan Loan 3M USD LIBOR+ 5.75 % 1.00 % 6.75 % 6/14/2025 2,427,552 2,401,608 1,775,900 Ivory Merger Sub, Inc. Healthcare & Pharmaceuticals Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.67 % 3/14/2025 2,949,539 2,931,462 2,870,285 J Jill Group, Inc Retail Priming Term Loan Loan 3M USD LIBOR+ 5.00 % 1.00 % 6.00 % 5/8/2024 1,574,907 1,573,650 1,409,542 53 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 Jane Street Group Banking, Finance, Insurance & Real Estate Term Loan (1/21) Loan 1M USD LIBOR+ 2.75 % 0.00 % 2.96 % 1/31/2028 3,960,000 3,954,873 3,906,778 Journey Personal Care Corp. Consumer goods: Non-durable Term Loan B Loan 3M USD LIBOR+ 4.25 % 0.75 % 5.00 % 3/1/2028 995,000 990,570 945,250 JP Intermediate B, LLC Consumer goods: Non-durable Term Loan Loan 3M USD LIBOR+ 5.50 % 1.00 % 6.50 % 11/15/2025 4,154,019 4,125,538 3,620,933 KAR Auction Services, Inc. Automotive Term Loan B (09/19) Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.50 % 9/19/2026 244,375 243,989 241,931 Klockner-Pentaplast of America, Inc. Containers, Packaging & Glass Term Loan (1/21) (USD) Loan 6M USD LIBOR+ 4.75 % 0.50 % 5.55 % 2/12/2026 1,488,750 1,482,629 1,391,981 Kodiak BP, LLC Construction & Building Term Loan Loan 3M USD LIBOR+ 3.25 % 0.75 % 4.00 % 3/13/2028 496,250 494,732 489,054 KREF Holdings X LLC Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan 3M USD LIBOR+ 3.50 % 0.50 % 4.00 % 9/1/2027 496,250 486,145 491,288 Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Priority Exit PIK Term Loan (9/20) Loan 3M USD LIBOR+ 6.00 % 1.25 % 7.25 % 9/25/2023 299,904 288,132 300,054 Lakeland Tours, LLC (d) Hotel, Gaming & Leisure 2nd Out Take Back PIK Term Loan Loan 3M USD LIBOR+ 1.50 % 1.25 % 2.75 % 9/25/2025 616,465 528,040 592,115 Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Third Out PIK Term Loan Loan 3M USD LIBOR+ 1.50 % 1.25 % 2.75 % 9/25/2025 818,373 540,076 720,987 Lakeland Tours, LLC (d) Hotel, Gaming & Leisure Holdco Fixed Term Loan Loan Fixed 0.00 % 0.00 % 13.25 % 9/27/2027 869,977 228,303 594,847 Lealand Finance Company B.V. (d) Energy: Oil & Gas Exit Term Loan Loan 1M USD LIBOR+ 1.00 % 0.00 % 1.21 % 6/30/2025 334,753 334,753 155,422 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 475,000 474,352 449,616 Lifetime Brands, Inc Consumer goods: Non-durable Term Loan B Loan 1M USD LIBOR+ 3.50 % 1.00 % 4.50 % 2/28/2025 2,694,077 2,673,038 2,667,136 Lightstone Generation LLC Energy: Electricity Term Loan B Loan 3M USD LIBOR+ 3.75 % 1.00 % 4.75 % 1/30/2024 1,322,520 1,321,594 1,099,212 Lightstone Generation LLC Energy: Electricity Term Loan C Loan 3M USD LIBOR+ 3.75 % 1.00 % 4.75 % 1/30/2024 74,592 74,542 61,997 Liquid Tech Solutions Holdings, LLC Services: Business Term Loan Loan 12M USD LIBOR+ 4.75 % 0.00 % 5.50 % 3/17/2028 995,000 991,612 991,269 LogMeIn, Inc. High Tech Industries Term Loan (8/20) Loan 1M USD LIBOR+ 4.75 % 0.00 % 4.89 % 8/31/2027 3,960,000 3,897,792 3,888,482 LOYALTY VENTURES INC. Services: Business Term Loan B Loan 1M USD LIBOR+ 4.50 % 0.50 % 5.00 % 11/3/2027 3,340,141 3,320,925 3,294,214 LPL Holdings, Inc. Banking, Finance, Insurance & Real Estate Term Loan B1 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.86 % 11/11/2026 1,220,308 1,218,289 1,200,857 LSF11 A5 HOLDCO LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD SOFR+ 3.75 % 0.50 % 4.25 % 10/16/2028 250,000 248,837 246,875 MA FinanceCo LLC High Tech Industries Term Loan B4 Loan 3M USD LIBOR+ 4.25 % 1.00 % 5.25 % 6/5/2025 2,234,660 2,228,836 2,208,582 MAGNITE, INC. Services: Business Term Loan Loan 6M USD LIBOR+ 5.00 % 0.75 % 5.75 % 4/28/2028 1,990,000 1,935,905 1,980,050 Marriott Ownership Resorts, Inc. Hotel, Gaming & Leisure Term Loan (11/19) Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.96 % 8/29/2025 1,317,074 1,317,074 1,290,403 Match Group, Inc, The Services: Consumer Term Loan (1/20) Loan 3M USD LIBOR+ 1.75 % 0.00 % 2.22 % 2/15/2027 250,000 249,562 244,895 Mayfield Agency Borrower Inc. (FeeCo) Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.50 % 0.00 % 4.71 % 2/28/2025 3,392,071 3,369,794 3,375,823 McAfee, LLC Services: Business Term Loan B Loan Prime+ 2.75 % 0.00 % 6.00 % 9/30/2024 1,642,423 1,638,322 1,638,054 McGraw-Hill Education, Inc. Media: Advertising, Printing & Publishing Term Loan (07/21) Loan 3M USD LIBOR+ 4.75 % 0.50 % 5.26 % 7/28/2028 1,995,000 1,976,108 1,975,050 MedAssets Software Inter Hldg, Inc. High Tech Industries Term Loan (11/21) (USD) Loan 3M USD LIBOR+ 4.00 % 0.50 % 4.50 % 11/17/2028 500,000 492,500 496,250 Mermaid Bidco Inc. High Tech Industries Term Loan B2 Loan 3M USD LIBOR+ 3.75 % 0.75 % 4.50 % 12/22/2027 993,756 990,577 976,366 Messer Industries, LLC Chemicals, Plastics, & Rubber Term Loan B Loan 3M USD LIBOR+ 2.50 % 0.00 % 2.72 % 3/1/2026 3,381,477 3,366,633 3,341,677 Michaels Companies Inc Retail Term Loan B (Magic Mergeco) Loan 3M USD LIBOR+ 4.25 % 0.75 % 5.00 % 4/8/2028 2,492,500 2,474,302 2,312,492 Milk Specialties Company Beverage, Food & Tobacco Term Loan (6/21) Loan 3M USD LIBOR+ 4.00 % 1.00 % 5.00 % 8/15/2025 3,801,560 3,774,075 3,782,552 MJH Healthcare Holdings, LLC Healthcare & Pharmaceuticals Term Loan B (01/22) Loan 1M USD SOFR+ 3.50 % 0.50 % 4.00 % 1/28/2029 250,000 248,782 247,500 54 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 MKS Instruments, Inc. High Tech Industries Term Loan B6 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.96 % 2/2/2026 868,529 863,296 862,562 MRC Global Inc. Metals & Mining Term Loan B2 Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.21 % 9/20/2024 351,484 351,116 348,848 MW Industries, Inc. (Helix Acquisition Holdings) Capital Equipment Term Loan (2019 Incremental) Loan 3M USD LIBOR+ 3.75 % 0.00 % 3.97 % 9/30/2024 2,842,097 2,812,930 2,765,730 NAB Holdings, LLC (North American Bancard) Banking, Finance, Insurance & Real Estate Term Loan (11/21) Loan 1M USD SOFR+ 3.00 % 0.50 % 3.50 % 11/17/2028 3,000,000 2,992,613 2,950,710 Natgasoline LLC Chemicals, Plastics, & Rubber Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.75 % 11/14/2025 3,472,277 3,448,686 3,411,513 National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan 2/21 Loan 1M USD LIBOR+ 3.75 % 0.75 % 4.50 % 3/2/2028 2,763,891 2,753,599 2,704,771 National Mentor Holdings, Inc. Healthcare & Pharmaceuticals Term Loan C 2/21 Loan 3M USD LIBOR+ 3.75 % 0.75 % 4.50 % 3/2/2028 87,464 87,078 85,593 National Mentor Holdings, Inc. (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan 2/21 Loan N/A N/A N/A N/A 3/2/2028 - - ( 2,758 ) Neenah, Inc. Forest Products & Paper Term Loan B (03/21) Loan 3M USD LIBOR+ 3.00 % 0.50 % 3.50 % 4/6/2028 1,990,000 1,981,133 1,960,150 NEW ERA CAP, LLC Consumer goods: Durable Term Loan (01/22) Loan 6M USD LIBOR+ 6.00 % 0.75 % 6.75 % 7/13/2027 1,000,000 998,828 997,500 Nexstar Broadcasting, Inc. (Mission Broadcasting) Media: Broadcasting & Subscription Term Loan Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.61 % 9/18/2026 1,113,795 1,103,364 1,107,146 Next Level Apparel, Inc. Retail Term Loan Loan 3M USD WIBOR+ 5.50 % 1.00 % 6.50 % 8/9/2024 1,725,340 1,717,025 1,690,834 NM Z Parent Inc (Zep Inc) Chemicals, Plastics, & Rubber Term Loan Loan 12M USD LIBOR+ 4.00 % 1.00 % 5.00 % 8/9/2024 871,151 869,399 842,838 NorthPole Newco S.a.r.l (b), (d) Aerospace & Defense Term Loan Loan 3M USD LIBOR+ 7.00 % 0.00 % 7.22 % 3/3/2025 5,348,887 5,028,659 1,537,805 NortonLifeLock Inc. High Tech Industries Term Loan B Loan 3M USD SOFR+ 2.00 % 0.50 % 2.50 % 1/28/2029 1,500,000 1,492,500 1,480,620 Novae LLC Automotive Term Loan B Loan 1M USD SOFR+ 5.00 % 0.75 % 5.75 % 12/22/2028 1,555,556 1,540,210 1,540,000 Novae LLC (a) Automotive Delayed Draw Term Loan Loan N/A N/A N/A N/A 12/22/2028 - - ( 4,444 ) Novolex Holdings, Inc (Flex Acquisition) Containers, Packaging & Glass Term Loan (02/21) Loan 3M USD LIBOR+ 3.50 % 0.50 % 4.00 % 3/2/2028 987,555 983,296 983,437 Nuvei Technologies Corp. High Tech Industries US Term Loan Loan 1M USD LIBOR+ 2.50 % 0.50 % 3.00 % 9/29/2025 2,238,750 2,234,198 2,210,766 Olaplex, Inc. Consumer goods: Non-durable Term Loan (2/22) Loan 1M USD SOFR+ 3.75 % 0.50 % 4.25 % 2/23/2029 1,000,000 997,500 996,250 Organon & Co. Healthcare & Pharmaceuticals Term Loan USD Loan 6M USD LIBOR+ 3.00 % 0.50 % 3.50 % 6/2/2028 2,410,417 2,399,629 2,397,617 Pacific Gas and Electric Company Utilities: Electric Term Loan Loan 3M USD LIBOR+ 3.00 % 0.50 % 3.50 % 6/18/2025 1,479,969 1,474,197 1,449,999 PACTIV EVERGREEN GROUP HOLDINGS INC. Containers, Packaging & Glass Term Loan B Loan 1M USD LIBOR+ 3.50 % 0.50 % 4.00 % 9/20/2028 997,500 992,792 984,473 Padagis LLC Healthcare & Pharmaceuticals Term Loan Loan 3M USD LIBOR+ 4.75 % 0.50 % 5.25 % 7/6/2028 941,176 932,470 934,118 Panther Guarantor II, L.P. (Forcepoint) High Tech Industries Term Loan 1/21 Loan 3M USD LIBOR+ 4.50 % 0.50 % 5.00 % 1/7/2028 497,500 494,346 493,520 Pathway Partners Vet Management Company LLC Services: Business Term Loan Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.96 % 3/30/2027 491,473 482,640 486,804 PCI Gaming Authority Hotel, Gaming & Leisure Term Loan Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.71 % 5/29/2026 809,038 806,361 800,188 PEARLS (Netherlands) Bidco B.V. Chemicals, Plastics, & Rubber USD Term Loan (02/22) Loan 3M USD SOFR+ 4.00 % 0.50 % 4.50 % 2/4/2029 1,000,000 997,500 989,580 PECF USS INTERMEDIATE HOLDING III CORPORATION Environmental Industries Term Loan B Loan 1M USD LIBOR+ 4.25 % 0.50 % 4.75 % 12/15/2028 100,000 99,777 99,391 PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC Healthcare & Pharmaceuticals Term Loan (12/22) Loan 3M USD LIBOR+ 3.50 % 0.00 % 3.84 % 12/28/2028 1,302,632 1,296,159 1,291,234 55 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 PEDIATRIC ASSOCIATES HOLDING COMPANY, LLC (a) Healthcare & Pharmaceuticals Delayed Draw Term Loan (12/21) Loan N/A N/A N/A N/A 12/28/2028 - - ( 1,727 ) Penn National Gaming Hotel, Gaming & Leisure Term Loan B-1 Loan 1M USD LIBOR+ 2.25 % 0.75 % 3.00 % 10/15/2025 1,762,675 1,715,292 1,746,370 Peraton Corp. Aerospace & Defense Term Loan B Loan 1M USD LIBOR+ 3.75 % 0.75 % 4.50 % 2/1/2028 5,459,994 5,439,162 5,425,869 PHYSICIAN PARTNERS, LLC Healthcare & Pharmaceuticals Term Loan Loan 1M USD SOFR+ 4.00 % 0.50 % 4.50 % 12/23/2028 2,000,000 1,980,245 1,985,000 Ping Identity Corporation High Tech Industries Term Loan B (11/21) Loan 6M USD SOFR+ 3.75 % 0.50 % 4.45 % 11/22/2028 1,000,000 995,074 990,000 Pitney Bowes Inc Services: Business Term Loan B Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.21 % 3/17/2028 2,977,500 2,960,793 2,944,003 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 3,515,981 3,504,837 Plastipak Holdings Inc. Containers, Packaging & Glass Term Loan B (11/21) Loan 1M USD LIBOR+ 2.50 % 0.50 % 3.00 % 11/17/2028 2,000,000 1,990,299 1,974,380 Playtika Holding Corp. High Tech Industries Term Loan B (3/21) Loan 1M USD LIBOR+ 2.75 % 0.00 % 2.96 % 3/13/2028 4,466,250 4,457,371 4,415,513 PMHC II, INC. Chemicals, Plastics, & Rubber Term Loan (02/22) Loan 3M USD SOFR+ 4.25 % 0.50 % 4.75 % 2/2/2029 2,000,000 1,990,000 1,968,340 PointClickCare Technologies, Inc. High Tech Industries Term Loan B Loan 6M USD LIBOR+ 3.00 % 0.75 % 3.75 % 12/29/2027 496,250 494,183 486,945 Polymer Process Holdings, Inc. Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+ 4.75 % 0.75 % 5.50 % 2/12/2028 5,458,750 5,404,639 5,333,635 Pre-Paid Legal Services, Inc. Services: Consumer Term Loan (12/21) Loan 3M USD LIBOR+ 3.75 % 0.50 % 4.25 % 12/15/2028 3,000,000 2,975,633 2,973,000 Presidio, Inc. Services: Business Term Loan B (1/20) Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.71 % 1/22/2027 492,500 491,700 488,038 Prime Security Services Borrower, LLC (ADT) Services: Consumer Term Loan (1/21) Loan 6M USD LIBOR+ 2.75 % 0.75 % 3.50 % 9/23/2026 3,556,300 3,553,818 3,513,837 PRIORITY HOLDINGS, LLC Services: Consumer Term Loan Loan 1M USD LIBOR+ 5.75 % 1.00 % 6.75 % 4/27/2027 2,985,000 2,957,411 2,973,806 PriSo Acquisition Corporation Construction & Building Term Loan (01/21) Loan 3M USD LIBOR+ 3.25 % 0.75 % 4.00 % 12/28/2027 496,248 494,100 487,832 Project Leopard Holdings Inc High Tech Industries Term Loan Loan 6M USD LIBOR+ 4.75 % 1.00 % 5.75 % 7/5/2024 495,000 494,242 492,678 Prometric Inc. (Sarbacane Bidco) Services: Consumer Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 4.00 % 1/29/2025 481,388 480,315 474,017 PUG LLC Services: Consumer Term Loan B (02/20) Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.71 % 2/12/2027 485,075 483,298 475,374 QUEST BORROWER LIMITED High Tech Industries Term Loan (1/22) Loan 3M USD SOFR+ 4.25 % 0.50 % 4.75 % 1/19/2029 2,000,000 1,980,237 1,968,760 Rackspace Technology Global, Inc. High Tech Industries Term Loan (1/21) Loan 1M USD LIBOR+ 2.75 % 0.75 % 3.50 % 2/15/2028 496,250 494,141 480,519 RealPage, Inc. High Tech Industries Term Loan (04/21) Loan 1M USD LIBOR+ 3.25 % 0.50 % 3.75 % 4/24/2028 997,500 995,328 985,720 Renaissance Learning, Inc. Services: Consumer Term Loan (5/18) Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.46 % 5/30/2025 2,969,141 2,946,381 2,922,496 Rent-A-Center, Inc. Retail Term Loan B2 (9/21) Loan 1M USD LIBOR+ 3.25 % 0.50 % 3.81 % 2/17/2028 993,744 991,647 973,869 Research Now Group, Inc Media: Advertising, Printing & Publishing Term Loan Loan 6M USD LIBOR+ 5.50 % 1.00 % 6.50 % 12/20/2024 4,343,378 4,268,021 4,251,082 Resideo Funding Inc. Services: Consumer Term Loan (1/21) Loan 1M USD LIBOR+ 2.25 % 0.50 % 2.75 % 2/11/2028 1,488,750 1,486,251 1,481,306 Resolute Investment Managers (American Beacon), Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 3M USD LIBOR+ 4.25 % 1.00 % 5.25 % 4/30/2024 3,084,702 3,078,180 3,067,366 Restoration Hardware, Inc. Retail Term Loan (9/21) Loan 3M USD LIBOR+ 2.50 % 0.50 % 3.00 % 10/20/2028 3,497,500 3,489,704 3,456,509 Reynolds Consumer Products LLC Containers, Packaging & Glass Term Loan Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.96 % 1/29/2027 1,291,932 1,290,988 1,271,829 Reynolds Group Holdings Inc. Metals & Mining Term Loan B2 Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.46 % 2/5/2026 3,465,000 3,449,546 3,406,545 Robertshaw US Holding Corp. Consumer goods: Durable Term Loan B Loan 6M USD LIBOR+ 3.50 % 1.00 % 4.50 % 2/28/2025 962,500 961,492 877,800 56 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 Rocket Software, Inc. High Tech Industries Term Loan (11/18) Loan 1M USD LIBOR+ 4.25 % 0.00 % 4.46 % 11/28/2025 2,905,190 2,897,593 2,876,138 Russell Investments US Inst’l Holdco, Inc. Banking, Finance, Insurance & Real Estate Term Loan (10/20) Loan 6M USD LIBOR+ 3.50 % 1.00 % 4.50 % 6/2/2025 5,637,965 5,601,072 5,592,185 RV Retailer LLC Automotive Term Loan Loan 3M USD SOFR+ 3.75 % 0.75 % 4.50 % 2/8/2028 1,985,000 1,967,852 1,951,513 Ryan Specialty Group LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 3.00 % 0.75 % 3.75 % 9/1/2027 493,750 487,862 489,583 S&S HOLDINGS LLC Services: Business Term Loan Loan 3M USD LIBOR+ 5.00 % 0.50 % 5.50 % 3/10/2028 2,483,744 2,427,454 2,458,906 Sally Holdings LLC Retail Term Loan B Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.46 % 7/5/2024 748,409 746,932 740,925 Samsonite International S.A. Consumer goods: Non-durable Term Loan B2 Loan 1M USD LIBOR+ 3.00 % 0.75 % 3.75 % 4/25/2025 987,538 967,436 979,519 Schweitzer-Mauduit International, Inc. High Tech Industries Term Loan B Loan 1M USD LIBOR+ 3.75 % 0.75 % 4.50 % 4/20/2028 2,985,000 2,969,212 2,895,450 Scientific Games Holdings LP Hotel, Gaming & Leisure Term Loan B Loan 3M USD SOFR+ 3.50 % 0.50 % 4.00 % 2/3/2029 500,000 498,750 496,460 SETANTA AIRCRAFT LEASING DAC Aerospace & Defense Term Loan Loan 3M USD LIBOR+ 2.00 % 0.00 % 2.14 % 11/2/2028 1,000,000 997,653 993,440 Signify Health, LLC Healthcare & Pharmaceuticals Term Loan B (6/21) Loan 3M USD LIBOR+ 3.25 % 0.50 % 3.75 % 6/16/2028 498,750 496,482 492,206 Sitel Worldwide Corporation Services: Business USD Term Loan (7/21) Loan 3M USD LIBOR+ 3.75 % 0.50 % 4.25 % 8/28/2028 1,995,000 1,985,688 1,981,294 SiteOne Landscape Supply, LLC Services: Business Term Loan (3/21) Loan 3M USD LIBOR+ 2.00 % 0.50 % 2.50 % 3/18/2028 785,769 784,048 780,528 SMG US Midco 2, Inc. Services: Business Term Loan (01/20) Loan 3M USD LIBOR+ 2.50 % 0.00 % 2.80 % 1/23/2025 490,000 490,000 472,238 Sotheby’s Services: Business Term Loan (7/21) Loan 3M USD LIBOR+ 4.50 % 0.50 % 5.00 % 1/15/2027 3,256,472 3,207,096 3,240,190 Sparta U.S. HoldCo LLC Chemicals, Plastics, & Rubber Term Loan (04/21) Loan 1M USD LIBOR+ 3.50 % 0.75 % 4.25 % 8/2/2028 2,000,000 1,990,687 1,985,000 Specialty Pharma III Inc. Services: Business Term Loan Loan 1M USD LIBOR+ 4.50 % 0.75 % 5.25 % 3/31/2028 1,995,000 1,977,135 1,975,050 Spectrum Brands, Inc. Consumer goods: Durable Term Loan (2/21) Loan 3M USD LIBOR+ 2.00 % 0.50 % 2.50 % 3/3/2028 496,250 495,145 494,389 Spin Holdco, Inc. Services: Consumer Term Loan 3/21 Loan 3M USD LIBOR+ 4.00 % 0.75 % 4.75 % 3/4/2028 2,977,500 2,962,439 2,958,474 SRAM, LLC Consumer goods: Durable Term Loan (05/21) Loan 1M USD LIBOR+ 2.75 % 0.50 % 3.26 % 5/12/2028 3,600,000 3,594,517 3,571,488 SS&C Technologies, Inc. Services: Business Term Loan B3 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.96 % 4/16/2025 190,170 189,956 186,819 SS&C Technologies, Inc. Services: Business Term Loan B4 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.96 % 4/16/2025 154,375 154,203 151,655 SS&C Technologies, Inc. Services: Business Term Loan B-5 Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.96 % 4/16/2025 477,615 477,001 469,376 STANDARD INDUSTRIES INC. Construction & Building Term Loan B Loan 3M USD LIBOR+ 2.50 % 0.50 % 3.00 % 9/22/2028 640,250 634,225 637,503 Staples, Inc. Wholesale Term Loan (03/19) Loan 3M USD LIBOR+ 5.00 % 0.00 % 5.13 % 4/16/2026 4,386,462 4,265,782 4,154,813 Stars Group Inc. (The) Hotel, Gaming & Leisure Term Loan Loan 3M USD LIBOR+ 2.25 % 0.00 % 2.47 % 7/21/2026 1,995,000 1,990,864 1,972,776 Storable, Inc High Tech Industries Term Loan B Loan 6M USD LIBOR+ 3.25 % 0.50 % 3.75 % 4/17/2028 500,000 498,861 494,375 Superannuation & Investments US LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 3.75 % 0.50 % 4.25 % 12/1/2028 1,000,000 990,274 995,940 Sylvamo Corporation Forest Products & Paper Term Loan Loan 1M USD LIBOR+ 4.50 % 0.50 % 5.00 % 8/18/2028 1,093,333 1,082,992 1,085,133 Syncsort Incorporated High Tech Industries Term Loan B (10/21) Loan 3M USD LIBOR+ 4.00 % 0.75 % 4.75 % 4/24/2028 2,495,000 2,493,770 2,465,684 Syniverse Holdings, Inc. Telecommunications Term Loan Loan 3M USD SOFR+ 4.25 % 0.50 % 4.75 % 2/1/2029 500,000 495,000 499,375 Tenable Holdings, Inc. Services: Business Term Loan B (6/21) Loan 6M USD LIBOR+ 2.75 % 0.50 % 3.27 % 7/7/2028 1,000,000 997,633 986,250 Teneo Holdings LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD SOFR+ 5.25 % 1.00 % 6.25 % 7/15/2025 4,428,522 4,355,261 4,383,129 Tenneco Inc Capital Equipment Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.21 % 10/1/2025 1,455,000 1,447,215 1,444,088 Ten-X, LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 4.00 % 1.00 % 5.00 % 9/27/2024 1,920,000 1,918,652 1,881,600 The Dun & Bradstreet Corporation Services: Business Term Loan Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.46 % 2/6/2026 1,000,000 998,750 988,330 57 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 The Dun & Bradstreet Corporation Services: Business Term Loan B Loan 1M USD SOFR+ 3.25 % 0.00 % 3.44 % 1/5/2029 250,000 248,180 246,668 THE KNOT WORLDWIDE INC. Services: Consumer Term Loan (1/22) Loan 1M USD SOFR+ 4.50 % 0.00 % 4.67 % 12/19/2025 4,869,796 4,863,346 4,829,231 The Octave Music Group, Inc (Touchtunes) Services: Business Term Loan B Loan 1M USD LIBOR+ 6.00 % 1.00 % 7.00 % 5/29/2025 2,893,526 2,872,208 2,871,824 Thor Industries, Inc. Automotive USD Term Loan (3/21) Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.25 % 2/1/2026 2,810,435 2,763,310 2,797,563 Tosca Services, LLC Containers, Packaging & Glass Term Loan (2/21) Loan 1M USD LIBOR+ 3.50 % 0.75 % 4.25 % 8/18/2027 495,000 489,079 487,575 Trans Union LLC Banking, Finance, Insurance & Real Estate Term Loan Loan 1M USD LIBOR+ 2.00 % 0.50 % 2.50 % 12/1/2028 870,968 868,877 860,804 Transdigm, Inc. Aerospace & Defense Term Loan G (02/20) Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.46 % 8/22/2024 4,024,167 4,026,414 3,959,700 Travel Leaders Group, LLC Hotel, Gaming & Leisure Term Loan B (08/18) Loan 1M USD LIBOR+ 4.00 % 0.00 % 4.21 % 1/25/2024 2,412,500 2,411,191 2,268,353 TRITON WATER HOLDINGS, INC. Beverage, Food & Tobacco Term Loan (03/21) Loan 3M USD LIBOR+ 3.50 % 0.50 % 4.00 % 3/31/2028 1,492,500 1,485,884 1,454,352 Tronox Pigments (Netherlands) B.V. Chemicals, Plastics, & Rubber Term Loan Loan 3M USD LIBOR+ 2.25 % 0.00 % 2.47 % 3/10/2028 346,923 346,183 341,719 TruGreen Limited Partnership Services: Consumer Term Loan Loan 1M USD LIBOR+ 4.00 % 0.75 % 4.75 % 10/29/2027 964,241 957,748 961,830 Uber Technologies, Inc. Transportation: Consumer Term Loan B (2/21) Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.71 % 2/25/2027 3,947,943 3,909,627 3,905,740 Ultra Clean Holdings, Inc. High Tech Industries Incremental Term Loan 3/21 Loan 1M USD LIBOR+ 3.75 % 0.00 % 3.96 % 8/27/2025 884,205 880,505 882,366 Unimin Corporation Metals & Mining Term Loan (12/20) Loan 3M USD LIBOR+ 4.00 % 1.00 % 5.00 % 7/31/2026 496,815 471,432 490,853 United Natural Foods, Inc Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 3.25 % 0.00 % 3.46 % 10/22/2025 1,624,974 1,562,482 1,616,166 United Road Services Inc. Transportation: Cargo Term Loan (10/17) Loan 6M USD LIBOR+ 5.75 % 1.00 % 6.75 % 9/1/2024 920,843 915,490 826,457 Univar Inc. Chemicals, Plastics, & Rubber Term Loan B6 Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.21 % 6/2/2028 1,990,000 1,980,782 1,974,458 Univision Communications Inc. Media: Broadcasting & Subscription Term Loan B (6/21) Loan 1M USD LIBOR+ 3.25 % 0.75 % 4.00 % 3/15/2026 2,471,487 2,464,765 2,451,913 US Ecology, Inc. Environmental Industries Term Loan B Loan 1M USD LIBOR+ 2.50 % 0.00 % 2.71 % 11/2/2026 490,000 489,302 488,040 Utz Quality Foods, LLC Beverage, Food & Tobacco Term Loan B Loan 1M USD LIBOR+ 3.00 % 0.00 % 3.21 % 1/20/2028 1,847,121 1,844,606 1,827,264 Vaco Holdings, LLC Services: Business Term Loan (01/22) Loan 1M USD SOFR+ 5.00 % 0.75 % 5.75 % 1/19/2029 250,000 248,777 248,124 Verifone Systems, Inc. Banking, Finance, Insurance & Real Estate Term Loan (7/18) Loan 3M USD LIBOR+ 4.00 % 0.00 % 4.50 % 8/20/2025 1,382,319 1,377,042 1,354,672 Vertex Aerospace Services Corp Aerospace & Defense Term Loan (10/21) Loan 1M USD LIBOR+ 4.00 % 0.75 % 4.75 % 12/6/2028 1,000,000 995,345 992,080 VFH Parent LLC Banking, Finance, Insurance & Real Estate Term Loan (01/22) Loan Daily SOFR+ 3.00 % 0.50 % 3.50 % 1/12/2029 3,100,888 3,092,414 3,071,833 Virtus Investment Partners, Inc. Banking, Finance, Insurance & Real Estate Term Loan B (9/21) Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.36 % 9/28/2028 2,992,500 2,982,995 2,971,942 Vistra Energy Corp Utilities: Electric 2018 Incremental Term Loan Loan 1M USD LIBOR+ 1.75 % 0.00 % 1.87 % 12/31/2025 907,176 906,677 890,075 Vizient, Inc Healthcare & Pharmaceuticals Term Loan B-6 Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.21 % 5/6/2026 486,250 485,567 480,779 VM Consolidated, Inc. Construction & Building Term Loan B (3/21) Loan 6M USD LIBOR+ 3.25 % 0.00 % 3.60 % 3/19/2028 2,339,327 2,336,223 2,322,951 Vouvray US Finance LLC High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.00 % 1.00 % 4.00 % 3/11/2024 476,250 476,250 411,837 Warner Music Group Corp. (WMG Acquisition Corp.) Hotel, Gaming & Leisure Term Loan G Loan 1M USD LIBOR+ 2.13 % 0.00 % 2.33 % 1/20/2028 1,250,000 1,249,760 1,234,763 Wastequip, LLC (HPCC Merger/Patriot Container) Environmental Industries Term Loan (3/18) Loan 1M USD LIBOR+ 3.75 % 1.00 % 4.75 % 3/15/2025 489,822 488,550 469,004 Watlow Electric Manufacturing Company High Tech Industries Term Loan B Loan 3M USD LIBOR+ 3.75 % 0.50 % 4.25 % 3/2/2028 2,481,250 2,470,270 2,452,294 58 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 West Corporation Telecommunications Term Loan B (Olympus Merger) Loan 3M USD LIBOR+ 4.00 % 1.00 % 5.00 % 10/10/2024 1,086,078 1,047,433 967,424 West Corporation Telecommunications Term Loan B Loan 3M USD LIBOR+ 3.50 % 1.00 % 4.50 % 10/10/2024 2,599,274 2,562,059 2,301,449 WEX Inc. Services: Business Term Loan B (3/21) Loan 1M USD LIBOR+ 2.25 % 0.00 % 2.46 % 3/31/2028 2,985,000 2,974,005 2,937,419 WildBrain Ltd. Media: Diversified & Production Term Loan Loan 1M USD LIBOR+ 4.25 % 0.75 % 5.00 % 3/27/2028 1,985,000 1,949,907 1,966,401 WP CITYMD BIDCO LLC Services: Consumer Term Loan B Loan 6M USD LIBOR+ 3.25 % 0.50 % 3.75 % 12/22/2028 7,424,013 7,399,065 7,355,340 Xperi Corporation High Tech Industries Term Loan Loan 1M USD LIBOR+ 3.50 % 0.00 % 3.71 % 6/8/2028 2,741,617 2,730,066 2,719,355 ZEBRA BUYER LLC Banking, Finance, Insurance & Real Estate Term Loan 4/21 Loan 3M USD LIBOR+ 3.25 % 0.50 % 3.75 % 11/1/2028 887,097 883,013 882,661 Zekelman Industries, Inc. Metals & Mining Term Loan (01/20) Loan 1M USD LIBOR+ 2.00 % 0.00 % 2.14 % 1/25/2027 968,914 968,914 954,622 Zodiac Pool Solutions Consumer goods: Durable Term Loan (1/22) Loan 1M USD SOFR+ 2.00 % 0.50 % 2.50 % 1/19/2029 500,000 498,783 493,440 $ 653,022,265 $ 638,963,350 Number of Shares Cost Fair Value Cash and cash equivalents U.S. Bank Money Market (c) 6,171,793 $ 6,171,793 $ 6,171,793 Total cash and cash equivalents 6,171,793 $ 6,171,793 $ 6,171,793 (a) All or a portion of this investment has an unfunded commitment as of February 28, 2022 (b) As of February 28, 2022, 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, 2022. (d) Investments include Payment-in-Kind Interest. LIBOR—London Interbank Offered Rate SOFR - Secured Overnight Financing Rate WIBOR - Warsaw Interbank Offered Rate 1M USD LIBOR—The 1 month USD LIBOR rate as of February 28, 2022 was 0.23%. 2M USD LIBOR—The 2 month USD LIBOR rate as of February 28, 2022 was 0.50%. 3M USD LIBOR—The 3 month USD LIBOR rate as of February 28, 2022 was 0.51%. 6M USD LIBOR—The 6 month USD LIBOR rate as of February 28, 2022 was 0.80%. 12M USD LIBOR - The 12 month USD LIBOR rate as of February 28, 2022 was 1.28%. 3 PL WIBOR - The 3 month PL WIBOR rate as of February 28, 2022 was 3.65%. Daily SOFR- The daily SOFR rate as of February 28, 2022 was 0.05%. 1M SOFR - The 1 month SOFR rate as of February 28, 2022 was 0.05%. 3M SOFR - The 3 month SOFR rate as of February 28, 2022 was 0.04%. Prime—The Prime Rate as of February 28, 2022 was 3.25%. See accompanying notes to consolidated financial statements. 59 Note 5. Investment in SLF JV On October 26, 2021, the Company and TJHA entered into the LLC Agreement to co-manage SLF JV. SLF JV is invested in SLF 2021, which is a wholly owned subsidiary of SLF JV. SLF 2021 was formed for the purpose of making investments in a diversified portfolio of broadly syndicated first lien and second lien term loans or bonds in the primary and secondary markets. The Company and TJHA have equal voting interest on all material decisions with respect to SLF JV, including those involving its investment portfolio, and equal control of corporate governance. No management fee is charged to SLF JV as control and management of SLF JV is shared equally. The Company and TJHA have committed to provide up to a combined $ 50.0 million of financing to SLF JV through cash contributions, with the Company providing $ 43.75 million and TJHA providing $ 6.25 million, resulting in an 87.5 % and 12.5 % ownership between the two parties. The financing is issued in the form of an unsecured note and equity. The unsecured note will pay a fixed rate of 10.0 % per annum and is due and payable in full on June 15, 2023. As of August 31, 2022, the Company and TJHA’s investment in SLF JV consisted of an unsecured note of $ 14.1 million and $ 2.0 million, respectively; and membership interest of $ 14.1 million and $ 2.0 million, respectively. As of August 31, 2022 and February 28, 2022, the Company’s investment in the unsecured note of SLF JV had a fair value of $ 14.1 million and $ 13.1 million, respectively, and the Company’s investment in the membership interests of SLF JV had a fair value of $ 6.7 million and $ 12.0 million, respectively. As of August 31, 2022, the Company earned $ 0.7 million of interest income related to SLF JV, which is included in interest income. As of August 31, 2022 and February 28, 2022, $ 0.00 million and $ 0.09 million, respectively, of interest income related to SLF JV was included in interest receivable. SLF JV’s investment in SLF 2021 is in the form of an unsecured loan. The unsecured note will pay a floating rate of LIBOR plus 7.00 % per annum and is due and payable in full on June 9, 2023. As of August 31, 2022, SLF JV’s investment in SLF 2021 had an aggregate fair value of approximately $ 23.7 million. The Company has determined that SLF JV is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. SLF JV is not a wholly-owned investment company subsidiary as the Company and TJHA each have an equal 50 % voting interest in SLF JV and thus neither party has a controlling financial interest. Furthermore, ASC 810, Consolidation concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate SLF JV. Note 6. Income Taxes SIA-ARC, Inc., SIA-Avionte, Inc., SIA-AX, 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 tax 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. In February 2022, SIA-GH, Inc., SIA-TT Inc. and SIA-VR, Inc. received an approved plan of liquidation following the sale of equity held by each of the portfolio companies. 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. Deferred tax assets and liabilities, and related valuation allowance as of August 31, 2022 and February 28, 2022 were as follows: 60 August 31, 2022 February 28, 2022 Total deferred tax assets $ 2,157,850 $ 1,991,241 Total deferred tax liabilities ( 1,885,601 ) ( 1,293,496 ) Valuation allowance on net deferred tax assets ( 1,982,564 ) ( 1,946,760 ) Net deferred tax liability $ ( 1,710,315 ) $ ( 1,249,015 ) As of August 31, 2022, 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. Net income tax expense for the three months ended August 31, 2022 includes $ 0.2 million deferred tax expense (benefit) on net change in unrealized appreciation (depreciation) on investments, and ($ 0.1 ) million net change in total operating expense, in the consolidated statement of operations, respectively. Net income tax expense for the three months ended August 31, 2021 includes $ 1.3 million net change in unrealized appreciation (depreciation) on investments and $ 0.4 million income tax provision from realized gain on investments and $ 0.03 million net change in total operating expense,, in the consolidated statement of operations, respectively. Net income tax expense for the six months ended August 31, 2022 includes $ 0.6 million deferred tax expense on net change in unrealized appreciation on investments, ($ 0.07 ) million income tax provision/(benefit) from realized gain/(loss) on investments and ($ 0.1 ) million net change in total operating expense, in the consolidated statement of operations, respectively. Net income tax expense for the six months ended August 31, 2021 includes $ 1.6 million net change in unrealized appreciation (depreciation) on investments $ 0.4 million income tax provision from realized gain on investments and $ 0.03 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) benefit on investments for three and six months ended August 31, 2022 and August 31, 2021: For the three months ended For the six months ended August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 Current Federal $ ( 3,674 ) $ 425,828 $ ( 217,516 ) $ - State ( 55 ) 50,694 78,448 - Net current expense ( 3,729 ) 476,522 ( 139,068 ) - Deferred Federal 89,409 1,111,006 385,480 127,850 State 42,583 220,748 75,819 130,213 Net deferred expense 131,992 1,331,754 461,299 258,063 Net tax provision $ 128,263 $ 1,808,276 $ 322,231 $ 258,063 Note 7. 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 from its effective date, with one-year renewals thereafter subject to certain approvals by our board of directors and/or the Company’s stockholders. Most recently, on July 5, 2022, 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 quarterly report on Form 10-Q. 61 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 three months ended August 31, 2022 and August 31, 2021, the company incurred $ 4.1 million and $ 3.0 million in base management fees, respectively. For the three months ended August 31, 2022 and 2021, the Company incurred $ 1.7 million and $ 1.7 million in incentive fees related to pre-incentive fee net investment income, respectively. For the three months ended August 31, 2022 and August 31, 2021, the Company accrued a (benefit) of $( 1.1 ) million and an expense of $ 0.3 million in incentive fees related to capital gains. For the six months ended August 31, 2022 and August 31, 2021, the company incurred $ 7.9 million and $ 5.8 million in base management fees, respectively. For the six months ended August 31, 2022 and August 31, 2021, the Company incurred $ 1.7 million and $ 3.2 million in incentive fees related to pre-incentive fee net investment income, respectively. For the six months ended August 31, 2022 and August 31, 2021, the Company accrued a (benefit) of ($ 3.0 ) million and an expense of $ 4.0 million 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 August 31, 2022, the base management fees accrual was $ 4.1 million and the incentive fees accrual was $ 5.4 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities. As of February 28, 2022, the base management fees accrual was $ 3.2 million and the incentive fees accrual was $ 9.8 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 from its effective date, with one-year renewals thereafter 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. On July 6, 2021, 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 $ 2.775 million to $ 3.0 million effective August 1, 2021. On July 5, 2022, 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 $ 3.0 million to $ 3.275 million effective August 1, 2022 . 62 For the three months ended August 31, 2022 and August 31, 2021, we recognized $ 0.8 million and $ 0.7 million in administrator expenses, respectively, pertaining to bookkeeping, record keeping and other administrative services provided to us in addition to our allocable portion of rent and other overhead related expenses. For the six months ended August 31, 2022 and August 31, 2021, we recognized $ 1.5 million and $ 1.4 million in administrator expenses, respectively, pertaining to bookkeeping, record keeping and other administrative services provided to us in addition to our allocable portion of rent and other overhead related expenses. As of August 31, 2022, $ 0.2 million of administrator expenses were accrued and included in due to manager in the accompanying consolidated statements of assets and liabilities. As of February 28, 2022, $ 0.3 million of administrator expenses were accrued and included in due to manager in the accompanying consolidated statements of assets and liabilities. Saratoga CLO 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. 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. 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. The non-call period was extended to February 2022. 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. At August 31, 2021, the outstanding receivable of 2.6 million was repaid in full. On August 9, 2021, the Company exchanged its existing $ 17.9 million Class F-R-3 Notes for $ 8.5 million Class F-1-R-3 Notes and $ 9.4 million Class F-2-R-3 Notes at par. On August 11, 2021, the Company sold its Class F-1-R-3 Notes to third parties, resulting in a realized loss of $ 0.1 million. For the three months ended August 31, 2022 and August 31, 2021, we recognized management fee income of $ 0.8 million and $ 0.8 million, respectively, related to the Saratoga CLO. For the six months ended August 31, 2022 and August 31, 2021, we recognized management fee income of $ 1.6 million and $ 1.6 million, respectively, related to the Saratoga CLO. For the six months ended August 31, 2022 and August 31, 2021, the Company neither bought nor sold any investments from the Saratoga CLO. SLF JV On October 26, 2021, the Company and TJHA entered into an LLC Agreement to co-manage the SLF JV. SLF JV is a joint venture that is expected to invest in the debt or equity interests of collateralized loan obligations, loan, notes and other debt instruments. As of August 31, 2022, the Company’s investment in the SLF JV had a fair value of $ 20.8 million, consisting of an unsecured loan of $ 14.1 million and membership interest of $ 6.7 million. In addition, the Company has a receivable of $ 0.02 million outstanding from the SLF JV, included in Due from Affiliate in the consolidated statements of assets and liabilities. Note 8. 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% after giving effect to such leverage, or, 150% if certain requirements under the 1940 Act are met. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, our board of directors, including a majority of our directors who are not “interested persons” (as defined in Section 2(a)(19) of the 1940 Act”) of the Company (“independent directors”), approved a minimum asset coverage ratio of 150 %. The 150 % asset coverage ratio became effective on April 16, 2019. 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 184.2 % as of August 31, 2022 and 209.3 % as of February 28, 2022. 63 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 “Madison 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 and SBIC II LP, was pledged under the Madison Credit Facility to secure our obligations thereunder. On February 24, 2012, we amended the Madison Credit Facility to, among other things: ● expand the borrowing capacity under the Madison Credit Facility from $40.0 million to $45.0 million; ● extend the period during which we may make and repay borrowings under the Madison 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 Madison 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 Madison 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 Madison Credit Facility from February 24, 2020 to September 17, 2022 (unless terminated sooner upon certain events); ● 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 Madison 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 Madison 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 Madison 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. 64 On September 14, 2020, we entered into a fifth amendment to the Madison Credit Facility to, among other things: ● extend the commitment termination date of the Madison 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. On September 13, 2021, we entered into a sixth amendment to the Madison Credit Facility to, among other things: ● Extend the commitment termination date of the Madison Credit Facility from September 17, 2021 to October 1, 2021, with no change to maturity date of September 17, 2025. On October 4, 2021, all outstanding amounts on the Madison Credit Facility were repaid and the Madison Credit Facility was terminated. The repayment and termination of the Madison Credit Facility resulted in a realized loss on the extinguishment of debt of $ 0.8 million. On October 4, 2021, the Company entered into a $ 50.0 million senior secured revolving credit facility with the Lender, supported by loans held by SIF II and pledged to the Encina Credit Facility. During the first two years following the closing date, SIF II may request an increase in the commitment amount to up to $ 75.0 million. The terms of the Encina Credit Facility require a minimum drawn amount of $12.5 million at all times during the first six months following the closing date, which increases to the greater of $25.0 million or 50% of the commitment amount in effect at any time thereafter. The term of the Encina Credit Facility is three years. Advances under the Encina Credit Facility bear interest at a floating rate per annum equal to LIBOR plus 4.0%, with LIBOR having a floor of 0.75%, with customary provisions related to the selection by the Lender and the Company of a replacement benchmark rate. The commitment termination date is October 4, 2024. In addition to any fees or other amounts payable under the terms of the Encina Credit Facility, an administrative agent fee per annum equal to $ 0.1 million is payable in equal monthly installments in arrears. As of August 31, 2022 and February 28, 2022, there were $ 25.0 million and $ 12.5 million outstanding under the Encina Credit Facility. During the applicable periods, the Company was in compliance with all of the limitations and requirements of the Encina Credit Facility. Financing costs of $ 1.4 million related to the Encina Credit Facility have been capitalized and are being amortized over the term of the Encina Credit Facility. For the three months ended August 31, 2022 and August 31, 2021, we recorded $ 0.4 million and $ 0.2 million of interest expense related to the Encina Credit Facility and the Madison Credit Facility, respectively, which includes commitment and administrative agent fees. For the three months ended August 31, 2022 and August 31, 2021, we recorded $ 0.1 million and $ 0.05 million of amortization of deferred financing costs related to the Encina Credit Facility and the Madison Credit Facility, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended August 31, 2022, the weighted average interest rate on the outstanding borrowings under the Encina Credit Facility was 5.83 %, and the average dollar amount of outstanding borrowings under the Encina Credit Facility was $ 25.0 million. For the six months ended August 31, 2022 and August 31, 2021, we recorded $ 0.7 million and $ 0.4 million of interest expense related to the Encina Credit Facility and the Madison Credit Facility, respectively, which includes commitment and administrative agent fees. For the six months ended August 31, 2022 and August 31, 2021, we recorded $ 0.2 million and $ 0.08 million of amortization of deferred financing costs related to the Encina Credit Facility and the Madison Credit Facility, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2022, the weighted average interest rate on the outstanding borrowings under the Encina Credit Facility was 5.40 %, and the average dollar amount of outstanding borrowings under the Encina Credit Facility was $ 22.5 million. The Encina 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 Encina 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. Availability on the Encina 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. The Company will pay the lender 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 Encina Credit Facility. 65 Our borrowing base under the Encina Credit Facility was $ 50.3 million subject to the Encina Credit Facility cap of $ 50.0 million at August 31, 2022. 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 SEC. Accordingly, the August 31, 2022 borrowing base relies upon the valuations set forth in the Quarterly Report on Form 10-Q for the period ended May 31, 2022. The valuations presented in this Quarterly Report on Form 10-Q will not be incorporated into the borrowing base until after this Quarterly Report on Form 10-Q is filed with the SEC. SBA Debentures Our wholly owned SBIC subsidiaries are able to borrow funds from the SBA against regulatory capital (which generally approximates equity capital in respective SBIC) and is subject to customary regulatory requirements, including, but not limited to, a periodic examination by the SBA. On August 14, 2019, the Company’s wholly owned subsidiary, SBIC II LP, received an SBIC license from the SBA. SBIC II LP’s SBIC 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, subject to SBA approval. With this license approval, Saratoga can grow its SBA relationship from $150.0 million to $325.0 million of committed capital. As of August 31, 2022, we have funded SBIC LP and SBIC II LP with an aggregate total of equity capital of $ 75.0 million and $ 87.5 million, respectively, and have $ 233.7 million in SBA-guaranteed debentures outstanding, of which $ 67.7 million is held in SBIC LP and $ 166.0 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. During the three months ended August 31, 2022, we redeemed $18.3 million of SBA debentures in SBIC LP, resulting in the recognition of a realized loss on the extinguishment of debt of $0.2 million. 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 enterprises’’ as defined by the SBA. A smaller enterprise 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. The Company received exemptive relief from the SEC to permit it to exclude the senior securities issued by SBIC subsidiaries from the definition of senior securities in the asset coverage requirement applicable to the Company under the 1940 Act. This allows the Company increased flexibility under the asset coverage requirement 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 independent 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 1940 Act. The 150.0 % asset coverage ratio became effective on April 16, 2019. As noted above, as of August 31, 2022, there was $233.7 million of SBA debentures outstanding and as of February 28, 2022, there was $185.0 million of SBA debentures outstanding. 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 $4.9 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. For the three months ended August 31, 2022 and August 31, 2021, we recorded $ 1.5 million and $ 1.2 million of interest expense related to the SBA debentures, respectively. For the three months ended August 31, 2022 and August 31, 2021, we recorded $ 0.2 million and $ 0.2 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 three months ended August 31, 2022 and August 31, 2021 on the outstanding borrowings of the SBA debentures was 2.75 % and 2.65 %, respectively. During the three months ended August 31, 2022 and August 31, 2021, the average dollar amount of SBA debentures outstanding was $ 222.0 million and $ 181.1 million, respectively. 66 For the six months ended August 31, 2022 and August 31, 2021, we recorded $ 2.9 million and $ 2.4 million of interest expense related to the SBA debentures, respectively. For the six months ended August 31, 2022 and August 31, 2021, we recorded $ 0.5 million and $ 0.4 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 six months ended August 31, 2022 and August 31, 2021 on the outstanding borrowings of the SBA debentures was 2.67 % and 2.78 %, respectively. During the six months ended August 31, 2022 and August 31, 2021, the average dollar amount of SBA debentures outstanding was $ 218.4 million and $ 169.8 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 In May 10, 2013, the Company issued $ 48.3 million in aggregate principal amount of 7.50 % fixed-rate notes due 2020 (the “2020 Notes”). The 2020 Notes were redeemed in full on January 13, 2017 and are no longer listed on the New York Stock Exchange (the “NYSE”). On May 29, 2015, the Company entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. Inc. 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 2022 Notes 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 net proceeds from the offering were used to repay all of the outstanding indebtedness under the 2020 Notes (as described above), and for general corporate purposes in accordance with our investment objective and strategies. 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 the 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 full redemption on February 7, 2020. At February 29, 2020, the debt was extinguished. As such, it was not fair valued with market quotes and is not fair value leveled. The repayment of the 2023 Notes resulted in a realized loss on the extinguishment of debt of $ 1.6 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 in aggregate principal amount of 6.25% 2025 Notes within 30 days. 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 were amortized over the term of the 6.25% 2025 Notes. On February 5, 2019, the Company issued an additional $20.0 million in aggregate principal amount of the 6.25% 2025 Notes 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 in aggregate principal amount of 6.25% 2025 Notes within 30 days. The additional 6.25% 2025 Notes were treated as a single series with the existing 6.25% 2025 Notes under the indenture and had the same terms as the existing 6.25% 2025 Notes. 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 were amortized over the term of the 6.25% 2025 Notes. On August 31, 2021, the Company redeemed $ 60.0 million in aggregate principal amount of the issued and outstanding 6.25 % 2025 Notes. The 6.25% 2025 Notes were listed on the NYSE under the trading symbol of “SAF”, and have been delisted following the full redemption on August 31, 2021. 67 At August 31, 2021, the debt was extinguished. As such, it was not fair valued with market quotes and is not fair value leveled. The repayment of the 6.25 % 2025 Notes resulted in a realized loss on the extinguishment of debt of $ 1.5 million. For the three months ended August 31, 2022 and August 31, 2021, we recorded $ 0.0 million and $ 0.9 million, respectively, of interest expense and $ 0.0 million and $ 0.1 million, respectively, of amortization of deferred financing costs related to the 6.25 % 2025 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended August 31, 2022 and August 31, 2021, the average dollar amount of 6.25 % 2025 Notes outstanding was $ 0.00 million and $ 57.4 million, respectively. 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. 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 were amortized over the term of the 7.25% 2025 Notes. On July 14, 2022, the Company redeemed $ 43.1 million in aggregate principal amount of the issued and outstanding 7.25% 2025 Notes. The 7.25 % 2025 Notes were listed on the NYSE under the trading symbol of “SAK”, and have been delisted following the full redemption on July 14, 2022. On July 14, 2022, the debt was extinguished. As such, it was not fair valued with market quotes and is not fair value leveled. The repayment of the 7.25 % 2025 Notes resulted in a realized loss on the extinguishment of debt of $ 1.2 million. As of February 28, 2022 the carrying amount and fair value of the 7.25 % 2025 Notes was $ 43.1 million and $ 43.9 million, respectively. For the three months ended August 31, 2022 and August 31, 2021, we recorded $ 0.4 million and $ 0.8 million, respectively, of interest expense and $ 0.04 million and $ 0.08 million, respectively, of amortization of deferred financing costs related to the 7.25 % 2025 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended August 31, 2022 and August 31, 2021, the average dollar amount of the 7.25 % 2025 Notes outstanding was $ 10.8 million and $ 43.1 million respectively. For the six months ended August 31, 2022 and August 31, 2021, we recorded $ 1.2 million and $ 1.6 million, respectively, of interest expense and $ 0.1 million and $ 0.2 million, respectively, of amortization of deferred financing costs related to the 7.25 % 2025 Notes. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2022 and August 31, 2021, the average dollar amount of the 7.25 % 2025 Notes outstanding was $ 27.0 million and $ 43.1 million respectively. On July 9, 2020, the Company issued $ 5.0 million in 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 7.75% Notes 2025. As of August 31, 2022, 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. As of February 28, 2022, there was $5.0 million outstanding of the 7.75% Notes 2025. The carrying amount of the amount outstanding of 7.75% Notes 2025 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 three months ended August 31, 2022 and August 31, 2021, we recorded $ 0.1 million and $ 0.1 million, respectively, of interest expense and $ 0.01 million and $ 0.01 million, respectively, of amortization of deferred financing costs related to the 7.75% Notes 2025. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended August 31, 2022 and August 31, 2021, the average dollar amount of 7.75% Notes 2025 outstanding was $ 5.0 million and $ 5.0 million respectively. On December 29, 2020, the Company issued $ 5.0 million in 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 6.25% Notes 2027. The 6.25% Notes 2027 are not listed and have a par value of $25.00 per share. 68 On January 28, 2021, the Company issued $ 10.0 million in 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 6.25% Notes 2027. As of August 31, 2022, the total 6.25% Notes 2027 outstanding was $ 15.0 million. The 6.25% Notes 2027 are not listed and have a par value of $ 25.00 per share. As of February 28, 2022, there was $ 15.0 million outstanding of the 6.25% Notes 2027. The carrying amount of the amount outstanding of 6.25% Notes 2027 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 three months ended August 31, 2022 and August 31, 2021, we recorded $ 0.2 million and $ 0.2 million, respectively, of interest expense and $ 0.02 million and $ 0.02 million, respectively, of amortization of deferred financing costs related to the 6.25% Notes 2027. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended August 31, 2022 and August 31, 2021 the average dollar amount of 6.25% Notes 2027 outstanding was $ 15.0 million and $ 15.0 million respectively. For the six months ended August 31, 2022 and August 31, 2021, we recorded $ 0.5 million and $ 0.5 million, respectively, of interest expense and $ 0.04 million and $ 0.04 million, respectively, of amortization of deferred financing costs related to the 6.25% Notes 2027. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended August 31, 2022 and August 31, 2021 the average dollar amount of 6.25% Notes 2027 outstanding was $ 15.0 million and $ 15.0 million respectively. On March 10, 2021, the Company issued $50.0 million in aggregate principal amount of our 4.375% fixed-rate Notes due in 2026 (the “4.375% Notes 2026”) for net proceeds of $49.0 million after deducting underwriting commissions of approximately $1.0 million. Offering costs incurred were approximately $0.2 million. Interest on the 4.375% Notes 2026 is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.375% per year, beginning August 28, 2021. The 4.375% Notes 2026 mature on February 28, 2026 and may be redeemed in whole or in part at any time on or after November 28, 2025 at par plus a “make-whole” premium, and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.2 million related to the 4.375% Notes 2026 have been capitalized and are being amortized over the term of the 4.375% Notes 2026. On July 15, 2021, the Company issued an additional $ 125.0 million in aggregate principal amount of the Company’s 4.375% Notes 2026 (the “Additional 4.375% 2026 Notes”) for net proceeds for approximately $ 123.5 million, based on the public offering price of 101.00 % of the aggregate principal amount of the Additional 4.375% 2026 Notes, after deducting the underwriting discount of $ 2.5 million and the offering expenses payable by the Company . The net proceeds from the offering were used to redeem all of the outstanding 6.25% 2025 Notes (as described above), and for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $ 2.7 million have been capitalized and are being amortized over the term of the additional 4.375% 2026 Notes. As of August 31, 2022, the total 4.375% Notes 2026 outstanding was $ 175.0 million. The 4.375% Notes 2026 are not listed and are issued in minimum denominations of $ 2,000 and integral multiples of $ 1,000 in excess thereof. As of February 28, 2022, there was $ 175.0 million outstanding of the 4.375% Notes 2026. The carrying amount of the amount outstanding of 4.375% Notes 2026 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 three months ended August 31, 2022 and August 31, 2021, we recorded $ 1.9 million and $ 1.2 million, respectively, of interest expense, $ 0.2 million and $ 0.1 million, respectively, of amortization of deferred financing costs and $ 0.05 million and $ 0.02 million, respectively, of amortization of premium on issuance of 4.375% Notes due 2026 (inclusive of the issuance of the Additional 4.375% 2026 Notes). Interest expense, amortization of deferred financing costs and amortization of premium on issuance of notes are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended August 31, 2022 and August 31, 2021, the average dollar amount of 4.375% Notes 2026 outstanding was $ 175.0 million and $ 115.2 million, respectively. For the six months ended August 31, 2022 and August 31, 2021, we recorded $ 3.8 million and $ 1.7 million, respectively, of interest expense, $ 0.3 million and $ 0.2 million, respectively, of amortization of deferred financing costs and $ 0.1 million and $ 0.02 million, respectively, of amortization of premium on issuance of 4.375% Notes due 2026 (inclusive of the issuance of the Additional 4.375% 2026 Notes). Interest expense, amortization of deferred financing costs and amortization of premium on issuance of notes are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2022 and August 31, 2021, the average dollar amount of 4.375% Notes 2026 outstanding was $ 175.0 million and $ 84.3 million, respectively. 69 On January 19, 2022, the Company issued $75.0 million in aggregate principal amount of our 4.35% fixed-rate Notes due in 2027 (the “4.35% Notes 2027”) for net proceeds of $73.0 million, based on the public offering price of 99.317% of the aggregate principal amount of the 4.35% Notes 2027, after deducting the underwriting commissions of approximately $1.5 million. Offering costs incurred were approximately $0.2 million. Interest on the 4.35% Notes 2027 is paid semi-annually in arrears on February 28 and August 28, at a rate of 4.35% per year, beginning August 28, 2022. The 4.35% Notes 2027 mature on February 28, 2027 and may be redeemed in whole or in part at the Company’s option at any time prior to November 28, 2026, at par plus a “make-whole” premium, and thereafter at par. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.7 million related to the 4.35% Notes 2027 have been capitalized and are being amortized over the term of the 4.35% Notes 2027. As of August 31, 2022, the total 4.35% Notes 2027 outstanding was $ 75.0 million. The 4.35% Notes 2027 are not listed and are issued in minimum denominations of $ 2,000 and integral multiples of $ 1,000 in excess thereof. As of February 28, 2022, there was $ 75.0 million outstanding. The carrying amount of the amount outstanding of 4.35% Notes 2027 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 three months ended August 31, 2022 and August 31, 2021, we recorded $ 0.8 million and $ 0.0 million, respectively, of interest expense and $ 0.1 million and $ 0.0 million, respectively, of amortization of deferred financing costs related to the 4.35% Notes 2027. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended August 31, 2022 and August 31, 2021, the average dollar amount of 4.35% Notes 2027 outstanding was $ 75.0 million and $ 0.0 million, respectively. For the six months ended August 31, 2022 and August 31, 2021, we recorded $ 1.6 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 4.35% Notes 2027. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2022 and August 31, 2021, the average dollar amount of 4.35% Notes 2027 outstanding was $ 75.0 million and $ 0.0 million, respectively. On April 27, 2022, the Company issued $87.5 million in aggregate principal amount of our 6.00% fixed-rate notes due 2027 (the “6.00% 2027 Notes”) for net proceeds of $84.8 million after deducting underwriting commissions of approximately $2.7 million. Offering costs incurred were approximately $0.1 million. On May 10, 2022, the underwriters partially exercised their option to purchase an additional $10.0 million in aggregate principal amount of the 6.00% 2027 Notes. Net proceeds to the Company were $9.7 million after deducting underwriting commissions of approximately $0.3 million. Interest on the 6.00% 2027 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.00% per year, beginning August 31, 2022. The 6.00% 2027 Notes mature on April 30, 2027 and commencing April 27, 2024, may be redeemed in whole or in part at any time or from time to time at our option. Financing costs of $3.3 million related to the 6.00% 2027 Notes have been capitalized and are being amortized over the term of the 6.00% 2027 Notes. The 6.00% 2027 Notes are listed on the NYSE under the trading symbol “SAT” with a par value of $25.00 per share. On August 15, 2022, the Company issued $ 8.0 million in aggregate principal amount of the 6.00% 2027 Notes for net proceeds of $ 7.8 million, based on the public offering price of 97.80 % of the aggregate principal amount of the 6.00% 2027 Notes. Additional offering costs incurred were approximately $ 0.03 million. Additional financing costs of $ 0.03 million related to the 6.00% 2027 Notes have been capitalized and are being amortized over the term of the 6.00% 2027 Notes. As of August 31, 2022, the carrying amount and fair value of the 6.00% 2027 Notes was $ 105.5 million and $ 101.8 million, respectively. The fair value of the 6.00% 2027 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 of February 28, 2022, the carrying amount and fair value of the 6.00% 2027 Notes was $ 0.0 million and $ 0.0 million, respectively. For the three months ended August 31, 2022 and August 31, 2021, we recorded $ 1.7 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 6.00% Notes 2027. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the three months ended August 31, 2022 and August 31, 2021, the average dollar amount of 6.00% Notes 2027 outstanding was $ 99.0 million and $ 0.0 million, respectively. For the six months ended August 31, 2022 and August 31, 2021, 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 6.00% Notes 2027. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. During the six months ended August 31, 2022 and August 31, 2021, the average dollar amount of 6.00% Notes 2027 outstanding was $ 43.8 million and $ 0.0 million, respectively. 70 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 Encina Lender Finance, LLC Fiscal year 2023 (as of August 31, 2022) $ 25,000 $ 1,842 - N/A Fiscal year 2022 (as of February 28, 2022) $ 12,500 $ 2,093 - N/A Credit Facility with Madison Capital Funding(14) 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(13) Fiscal year 2022 (as of February 28, 2022) - - - N/A 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(16) Fiscal year 2023 (as of August 31, 2022) $ - $ - - N/A Fiscal year 2022 (as of February 28, 2022) $ 43,125 $ 2,093 - $ 25.46 (11) Fiscal year 2021 (as of February 28, 2021) $ 43,125 $ 3,471 - $ 25.77 (11) 7.75% Notes due 2025 Fiscal year 2023 (as of August 31, 2022) $ 5,000 $ 1,842 - $ 25.00 (12) Fiscal year 2022 (as of February 28, 2022) $ 5,000 $ 2,093 - $ 25.00 (12) Fiscal year 2021 (as of February 28, 2021) $ 5,000 $ 3,471 - $ 25.00 (12) 4.375% Notes due 2026 Fiscal year 2023 (as of August 31, 2022) $ 175,000 $ 1,842 - $ 25.00 (12) Fiscal year 2022 (as of February 28, 2022) $ 175,000 $ 2,093 - $ 25.00 (12) 4.35% Notes due 2027 Fiscal year 2023 (as of August 31, 2022) $ 75,000 $ 1,842 - $ 25.00 (12) Fiscal year 2022 (as of February 28, 2022) $ 75,000 $ 2,093 - $ 25.00 (12) 6.25% Notes due 2027 Fiscal year 2023 (as of August 31, 2022) $ 15,000 $ 1,842 - $ 25.00 (12) Fiscal year 2022 (as of February 28, 2022) $ 15,000 $ 2,093 - $ 25.00 (12) Fiscal year 2021 (as of February 28, 2021) $ 15,000 $ 3,471 - $ 25.00 (12) 6.00% Notes due 2027 Fiscal year 2023 (as of August 31, 2022) $ 105,500 $ 1,842 $ 24.12 (15) 71 (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. (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. (13) On August 31, 2021, the Company redeemed $ 60.0 million in aggregate principal amount of the issued and outstanding 6.25 % 2025 Notes. The Company used a portion of the net proceeds from the 4.375 % 2026 Notes offering, which was completed in July 2021, to redeem the 6.25 % 2025 Notes in full. (14) On October 4, 2021, the Company repaid all remaining amounts outstanding under the Madison Credit Facility and the credit agreement relating to the Madison Credit Facility was terminated. (15) Based on the average daily trading price of the 2027 Notes on the NYSE. (16) On July 14, 2022, the Company redeemed $ 43.1 million in aggregate principal amount of the issued and outstanding 7.25 % 2025 Notes. 72 Note 9. Commitments and Contingencies Contractual Obligations The following table shows our payment obligations for repayment of debt and other contractual obligations at August 31, 2022: 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 $ 25,000 $ - $ 25,000 $ - $ - SBA debentures 233,660 - 15,000 33,660 185,000 7.75% 2025 Notes 5,000 - 5,000 - - 4.375% 2026 Notes 175,000 - - 175,000 - 4.35% 2027 Notes 75,000 - - 75,000 - 6.25% 2027 Notes 15,000 - - - 15,000 6.00% 2027 Notes 105,500 - - 105,500 - Total Long-Term Debt Obligations $ 634,160 $ - $ 45,000 $ 389,160 $ 200,000 Off-Balance Sheet Arrangements As of August 31, 2022 and February 28, 2022, the Company’s off-balance sheet arrangements consisted of $ 90.7 million and $ 83.4 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. 73 A summary of the unfunded commitments outstanding as of August 31, 2022 and February 28, 2022 is shown in the table below (dollars in thousands): August 31, 2022 February 28, 2022 At Company’s discretion ActiveProspect, Inc. $ 10,000 $ - Artemis Wax 3,000 3,700 Ascend Software LLC 5,000 5,000 Axero Holdings - 3,000 Davisware 2,000 2,000 Granite Comfort 5,000 - JDXpert 5,000 - Lee’s Famous Recipe Chicken 4,000 10,000 Netreo Holdings, LLC - 4,000 Pepper Palace 3,000 3,000 Procrement Partners - 2,800 Saratoga Senior Loan Fund I JV LLC 15,606 17,500 Sceptre Hospitality Resources 250 1,000 Book4Time, Inc. - 2,000 Total 52,856 54,000 At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required Ascend Software LLC 4,200 6,500 ARC Health 8,500 - Axero Holdings - 2,000 Axero Holdings - Revolver 500 500 Davisware, LLC 1,000 1,000 Exigo - DDTL 4,167 - Exigo - Revolver 833 - GDS Holdings US, Inc. 1,036 2,786 Granite Comfort 5,000 - GoReact 500 2,500 JDXpert 1,000 - Madison Logic - Revolver 1,084 1,084 New England Dental Partners 4,500 4,500 Pepper Palace - DDTL 2,000 2,000 Pepper Palace - Revolver 2,500 2,500 Zollege 1,000 1,000 Lee’s Famous Recipe Chicken - 3,000 37,820 29,370 Total $ 90,676 $ 83,370 The Company believes its assets will provide adequate coverage to satisfy these unfunded commitments. As of August 31, 2022, the Company had cash and cash equivalents of $ 12.6 million and $ 25.0 million in available borrowings under the Encina Credit Facility. 74 Note 10. 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 Section 2(a)(19) of the 1940 Act). For the three months ended August 31, 2022 and August 31, 2021, we incurred $ 0.1 million and $ 0.1 million for directors’ fees and expenses, respectively. For the six months ended August 31, 2022 and August 31, 2021, we incurred $ 0.2 million and $ 0.2 million for directors’ fees and expenses, respectively. As of August 31, 2022, and February 28, 2022, $ 0.1 million and $ 0.07 million in directors’ fees and expenses were accrued and unpaid, respectively. As of August 31, 2022, we had not issued any common stock to our directors as compensation for their services. Note 11. 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. 75 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 Share Repurchase Plan for another year to January 15, 2022, leaving the number of shares unchanged at 1.3 million shares of common stock. On January 4, 2022, our board of directors extended the Shares Repurchase Plan for another year to January 15, 2023, leaving the number of shares unchanged at 1.3 million shares of common stock. As of August 31, 2022, the Company purchased 803,962 shares of common stock, at the average price of $21.47 for approximately $17.3 million pursuant to the Share Repurchase Plan. During the three months ended August 31, 2022 the Company purchased 153,350 shares of common stock, at the average price of $24.04 for approximately $3.7 million pursuant to the Share Repurchase Plan. During the six months ended August 31, 2022 the Company purchased 295,527 shares of common stock, at the average price of $25.11 for approximately $7.4 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 11, 2019, the amount of the common stock to be offered 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. This agreement was terminated as of July 29, 2021, and as of that date, the Company had 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). 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. On July 30, 2021, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc. and Compass Point Research and Trading, LLC (collectively the “Agents”), through which we may offer for sale, from time to time, up to $ 150.0 million of our common stock through the Agents, or to them, as principal for their account. As of August 31, 2022, the Company sold 4,840,361 shares for gross proceeds of $ 124.0 million at an average price of $ 25.61 for aggregate net proceeds of $ 122.4 million (net of transaction costs). During the three and six months ended August 31, 2022, there were no shares sold pursuant to the equity distribution agreement with the Agents. 76 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 Total Common Stock in Excess Distributable Shares Amount of Par Value Earnings (Loss) Net Assets Balance at February 28, 2021 11,161,416 $ 11,161 $ 304,874,957 $ ( 700,348 ) $ 304,185,770 Increase (Decrease) from Operations: Net investment income - - - 2,555,935 2,555,935 Net realized gain (loss) from investments - - - 1,910,141 1,910,141 Net change in unrealized appreciation (depreciation) on investments - - - 16,812,577 16,812,577 Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - ( 230,144 ) ( 230,144 ) Decrease from Shareholder Distributions: Distributions of investment income – net - - - ( 4,799,405 ) ( 4,799,405 ) Capital Share Transactions: Proceeds from issuance of common stock - - - - - Stock dividend distribution 38,580 39 914,063 - 914,102 Repurchases of common stock ( 40,000 ) ( 40 ) ( 1,003,380 ) - ( 1,003,420 ) Repurchase fees - - ( 800 ) - ( 800 ) Offering costs - - - - - Balance at May 31, 2021 11,159,995 $ 11,160 $ 304,784,840 $ 15,548,756 $ 320,344,756 Increase (Decrease) from Operations: Net investment income - - - 6,393,261 6,393,261 Net realized gain (loss) from investments - - - 1,501,597 1,501,597 Income tax (provision) benefit from realized gain on investments - - - ( 448,883 ) ( 448,883 ) Realized losses on extinguishment of debt ( 1,552,140 ) ( 1,552,140 ) Net change in unrealized appreciation (depreciation) on investments - - - 3,376,540 3,376,540 Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - ( 1,328,711 ) ( 1,328,711 ) Decrease from Shareholder Distributions: Distributions of investment income – net - - - ( 4,910,394 ) ( 4,910,394 ) Capital Share Transactions: Proceeds from issuance of common stock 5,441 6 157,034 - 157,040 Stock dividend distribution 33,099 33 828,479 - 828,512 Repurchases of common stock ( 9,623 ) ( 10 ) ( 248,713 ) - ( 248,723 ) Repurchase fees - - ( 192 ) - ( 192 ) Offering costs - - ( 817 ) - ( 817 ) Balance at August 31, 2021 11,188,912 $ 11,189 $ 305,520,631 $ 18,580,025 $ 324,111,845 Increase (Decrease) from Operations: Net investment income - - - 5,196,635 5,196,635 Net realized gain (loss) from investments - - - 9,916,925 9,916,925 Income tax (provision) benefit from realized gain on investments - - - ( 2,447,173 ) ( 2,447,173 ) Realized losses on extinguishment of debt ( 764,123 ) ( 764,123 ) Net change in unrealized appreciation (depreciation) on investments - - - ( 6,042,616 ) ( 6,042,616 ) Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - 2,480,465 2,480,465 Decrease from Shareholder Distributions: Distributions of investment income – net - - - ( 5,889,329 ) ( 5,889,329 ) Capital Share Transactions: Proceeds from issuance of common stock 520,076 520 15,163,259 - 15,163,779 Stock dividend distribution 38,016 38 1,017,625 - 1,017,663 Repurchases of common stock - - - - - Repurchase fees - - - - - Offering costs - - ( 142,326 ) - ( 142,326 ) Balance at November 30, 2021 11,747,004 $ 11,747 $ 321,559,189 $ 21,030,809 $ 342,601,745 77 Capital Total Common Stock in Excess Distributable Shares Amount of Par Value Earnings (Loss) Net Assets Increase (Decrease) from Operations: Net investment income - - - 5,796,910 5,796,910 Net realized gain (loss) from investments - - - 69,664 69,664 Income tax (provision) benefit from realized gain on investments - - - 9,612 9,612 Realized losses on extinguishment of debt ( 118,147 ) ( 118,147 ) Net change in unrealized appreciation (depreciation) on investments - - - 2,873,561 2,873,561 Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - ( 226,702 ) ( 226,702 ) Decrease from Shareholder Distributions: Distributions of investment income – net - - - ( 6,434,106 ) ( 6,434,106 ) Capital Share Transactions: Proceeds from issuance of common stock 392,826 392 11,513,992 - 11,514,383 Stock dividend distribution 41,520 42 1,114,886 - 1,114,929 Repurchases of common stock ( 50,000 ) ( 50 ) ( 1,292,843 ) - ( 1,292,893 ) Repurchase fees ( 1,000 ) - ( 1,000 ) Offering costs ( 127,433 ) - ( 127,433 ) Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles - - ( 4,704,545 ) 4,704,545 - Balance at February 28, 2022 12,131,350 $ 12,131 $ 328,062,246 $ 27,706,146 $ 355,780,523 Increase (Decrease) from Operations: Net investment income - - - 7,976,222 7,976,222 Net realized gain (loss) from investments - - - 162,509 162,509 Income tax (provision) benefit from realized gain on investments - - - 69,250 69,250 Net change in unrealized appreciation (depreciation) on investments - - - ( 9,333,449 ) ( 9,333,449 ) Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - ( 361,951 ) ( 361,951 ) Decrease from Shareholder Distributions: Distributions of investment income – net - - - ( 6,428,817 ) ( 6,428,817 ) Capital Share Transactions: Proceeds from issuance of common stock - - - - - Stock dividend distribution 42,825 43 1,108,637 - 1,108,680 Repurchases of common stock ( 142,177 ) ( 142 ) ( 3,734,174 ) - ( 3,734,316 ) Repurchase fees - - ( 2,840 ) - ( 2,840 ) Offering costs - - - - - Balance at May 31, 2022 12,031,998 $ 12,032 $ 325,433,869 $ 19,789,910 $ 345,235,811 Increase (Decrease) from Operations: Net investment income - - - 7,698,014 7,698,014 Net realized gain (loss) from investments - - - 7,943,838 7,943,838 Realized losses on extinguishment of debt - - - ( 1,204,809 ) ( 1,204,809 ) Net change in unrealized appreciation (depreciation) on investments - - - ( 13,258,456 ) ( 13,258,456 ) Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - ( 230,154 ) ( 230,154 ) Decrease from Shareholder Distributions: Distributions of investment income – net - - - ( 6,369,981 ) ( 6,369,981 ) Capital Share Transactions: Stock dividend distribution 48,590 49 1,088,139 - 1,088,188 Repurchases of common stock ( 153,350 ) ( 154 ) ( 3,685,951 ) - ( 3,686,105 ) Repurchase fees - - ( 3,071 ) - ( 9,464 ) Balance at August 31, 2022 11,927,238 $ 11,927 $ 322,832,986 $ 14,368,362 $ 337,213,275 78 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 Total Common Stock in Excess Distributable Shares Amount of Par Value Earnings (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 79 Capital Total Common Stock in Excess Distributable Shares Amount of Par Value Earnings (Loss) Net Assets 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 Increase (Decrease) from Operations: Net investment income - - - 2,555,935 2,555,935 Net realized gain (loss) from investments - - - 1,910,141 1,910,141 Net change in unrealized appreciation (depreciation) on investments - - - 16,812,577 16,812,577 Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - ( 230,144 ) ( 230,144 ) Decrease from Shareholder Distributions: Distributions of investment income – net - - - ( 4,799,405 ) ( 4,799,405 ) Capital Share Transactions: Proceeds from issuance of common stock - - - - - Stock dividend distribution 38,580 39 914,063 - 914,102 Repurchases of common stock ( 40,000 ) ( 40 ) ( 1,003,380 ) - ( 1,003,420 ) Repurchase fees - - ( 800 ) - ( 800 ) Offering costs - - - - - Balance at May 31, 2021 11,159,995 $ 11,160 $ 304,784,840 $ 15,548,756 $ 320,344,756 Increase (Decrease) from Operations: Net investment income - - - 6,393,261 6,393,261 Net realized gain (loss) from investments - - - 1,501,597 1,501,597 Income tax (provision) benefit from realized gain on investments - - - ( 448,883 ) ( 448,883 ) Realized losses on extinguishment of debt ( 1,552,140 ) ( 1,552,140 ) Net change in unrealized appreciation (depreciation) on investments - - - 3,376,540 3,376,540 Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - ( 1,328,711 ) ( 1,328,711 ) Decrease from Shareholder Distributions: Distributions of investment income – net - - - ( 4,910,394 ) ( 4,910,394 ) Capital Share Transactions: Proceeds from issuance of common stock 5,441 6 157,034 - 157,040 Stock dividend distribution 33,099 33 828,479 - 828,512 Repurchases of common stock ( 9,623 ) ( 10 ) ( 248,713 ) - ( 248,723 ) Repurchase fees - - ( 192 ) - ( 192 ) Offering costs - - ( 817 ) - ( 817 ) Balance at August 31, 2021 11,188,912 $ 11,189 $ 305,520,631 $ 18,580,025 $ 324,111,845 80 Capital Total Common Stock in Excess Distributable Shares Amount of Par Value Earnings (Loss) Net Assets Increase (Decrease) from Operations: Net investment income - - - 5,196,635 5,196,635 Net realized gain (loss) from investments - - - 9,916,925 9,916,925 Income tax (provision) benefit from realized gain on investments - - - ( 2,447,173 ) ( 2,447,173 ) Realized losses on extinguishment of debt ( 764,123 ) ( 764,123 ) Net change in unrealized appreciation (depreciation) on investments - - - ( 6,042,616 ) ( 6,042,616 ) Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - 2,480,465 2,480,465 Decrease from Shareholder Distributions: Distributions of investment income – net - - - ( 5,889,329 ) ( 5,889,329 ) Capital Share Transactions: Proceeds from issuance of common stock 520,076 520 15,163,259 - 15,163,779 Stock dividend distribution 38,016 38 1,017,625 - 1,017,663 Repurchases of common stock - - - - - Repurchase fees - - - - Offering costs - - ( 142,326 ) - ( 142,326 ) Balance at November 30, 2021 11,747,004 $ 11,747 $ 321,559,189 $ 21,030,809 $ 342,601,745 Increase (Decrease) from Operations: Net investment income 5,796,910 5,796,910 Net realized gain (loss) from investments 69,664 69,664 Income tax (provision) benefit from realized gain on investments 9,612 9,612 Realized losses on extinguishment of debt ( 118,147 ) ( 118,147 ) Net change in unrealized appreciation (depreciation) on investments 2,873,561 2,873,561 Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments ( 226,702 ) ( 226,702 ) Decrease from Shareholder Distributions: Distributions of investment income – net ( 6,434,106 ) ( 6,434,106 ) Capital Share Transactions: Proceeds from issuance of common stock 392,826 392 11,513,992 11,514,383 Stock dividend distribution 41,520 42 1,114,886 1,114,929 Repurchases of common stock ( 50,000 ) ( 50 ) ( 1,292,843 ) ( 1,292,893 ) Repurchase fees ( 1,000 ) ( 1,000 ) Offering costs ( 127,433 ) ( 127,433 ) Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles ( 4,704,545 ) 4,704,545 Balance at February 28, 2022 12,131,350 $ 12,131 $ 328,062,246 $ 27,706,146 $ 355,780,523 Balance at February 28, 2018 6,257,029 $ 6,257 $ 188,975,590 $ ( 45,290,480 ) $ 143,691,367 Cumulative effect of the adoption of ASC 606 (Note 2) - - - ( 65,300 ) ( 65,300 ) Balance at March 1, 2018 6,257,029 6,257 188,975,590 ( 45,355,780 ) 143,626,067 Increase (Decrease) from Operations: Net investment income - - - 3,927,648 3,927,648 Net realized gain (loss) from investments - - - 212,008 212,008 Net change in unrealized appreciation (depreciation) on investments - - - 643,205 643,205 Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - ( 940,546 ) ( 940,546 ) Decrease from Shareholder Distributions: Distributions of investment income – net - - - ( 3,128,513 ) ( 3,128,513 ) Capital Share Transactions: Proceeds from issuance of common stock - - - - - Stock dividend distribution 25,355 25 504,853 - 504,878 Repurchases of common stock - - - - - Offering costs - - - - - Balance at May 31, 2018 6,282,384 6,282 189,480,443 ( 44,641,978 ) 144,844,747 81 For the Year Ended February 28, 2019 Capital Total Common Stock in Excess Distributable Shares Amount of Par Value Earnings (Loss) Net Assets Increase (Decrease) from Operations: Net investment income - - - 5,144,228 5,144,228 Net realized gain (loss) from investments - - - 163 163 Net change in unrealized appreciation (depreciation) on investments - - - ( 2,154,521 ) ( 2,154,521 ) Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - 152,546 152,546 Decrease from Shareholder Distributions: Distributions of investment income – net - - - ( 3,204,014 ) ( 3,204,014 ) Capital Share Transactions: Proceeds from issuance of common stock 1,150,000 1,150 28,748,850 - 28,750,000 Stock dividend distribution 21,563 22 511,523 - 511,545 Repurchases of common stock - - - - - Offering costs - - ( 1,386,667 ) - ( 1,386,667 ) Balance at August 31, 2018 7,453,947 7,454 217,354,149 ( 44,703,576 ) 172,658,027 Increase (Decrease) from Operations: Net investment income - - - 5,138,941 5,138,941 Net realized gain (loss) from investments - - - ( 67,164 ) ( 67,164 ) Net change in unrealized appreciation (depreciation) on investments - - - ( 1,031,113 ) ( 1,031,113 ) Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - ( 371,581 ) ( 371,581 ) Decrease from Shareholder Distributions: Distributions of investment income – net - - - ( 3,876,050 ) ( 3,876,050 ) Capital Share Transactions: Proceeds from issuance of common stock 10,373 10 241,228 - 241,238 Stock dividend distribution 25,863 26 578,057 - 578,083 Repurchases of common stock - - - - - Offering costs - - ( 1,290 ) - ( 1,290 ) Balance at November 30, 2018 7,490,183 7,490 218,172,144 ( 44,910,543 ) 173,269,091 Increase (Decrease) from Operations: Net investment income - - - 4,091,392 4,091,392 Net realized gain (loss) from investments - - - 4,729,298 4,729,298 Net change in unrealized appreciation (depreciation) on investments - - - ( 357,880 ) ( 357,880 ) Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments - - - ( 607,254 ) ( 607,254 ) Decrease from Shareholder Distributions: Distributions of investment income – net - - - ( 3,980,011 ) ( 3,980,011 ) Capital Share Transactions: Proceeds from issuance of common stock 136,176 136 3,158,783 - 3,158,919 Stock dividend distribution 30,797 31 581,356 - 581,387 Repurchases of common stock - - - - - Offering costs - - ( 9,755 ) - ( 9,755 ) Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles - - ( 18,349,728 ) 18,349,728 - Balance at February 28, 2019 7,657,156 $ 7,657 $ 203,552,800 $ ( 22,685,270 ) $ 180,875,187 82 Note 12. 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 (decrease) in net assets resulting from operations per share for the three and six months ended August 31, 2022 and August 31, 2021 (dollars in thousands except share and per share amounts): For the three months ended For the six months ended Basic and Diluted August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 Net increase (decrease) in net assets resulting from operations $ 948 $ 7,942 $ ( 539 ) $ 28,990 Weighted average common shares outstanding 11,963,276 11,175,436 12,037,855 11,172,787 Weighted average earnings (loss) per common share $ 0.08 $ 0.71 $ ( 0.04 ) $ 2.59 Note 13. Dividend On August 29, 2022, the Company declared a dividend of $ 0.54 per share payable on September 29, 2022 , to common stockholders of record on September 14, 2022 . 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 $ 5.3 million in cash and 52,313 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 $ 22.00 per share, which equaled 95 % of the volume weighted average trading price per share of the common stock on September 16, 19, 20, 21, 22, 23, 26, 27, 28 and 29, 2022. The following table summarizes dividends declared for the six months ended August 31, 2022 (dollars in thousands except per share amounts): Date Declared Record Date Payment Date Amount Per Share Total Amount* August 29, 2022 September 14, 2022 September 29, 2022 $ 0.54 $ 6,433 May 26, 2022 June 14, 2022 June 29, 2022 0.53 6,370 Total dividends declared $ 1.07 $ 6,370 * Total amount is calculated based on the number of shares outstanding at the date of record. The following table summarizes dividends declared for the six months ended August 31, 2021 (dollars in thousands except per share amounts): Date Declared Record Date Payment Date Amount Per Share Total Amount* May 27, 2021 June 15, 2021 May 29, 2021 $ 0.44 $ 4,910 March 22, 2021 April 8, 2021 April 22, 2021 0.43 4,799 Total dividends declared $ 0.87 $ 9,709 * Total amount is calculated based on the number of shares outstanding at the date of record. 83 Note 14. Financial Highlights The following is a schedule of financial highlights as of and for the six months ended August 31, 2022 and August 31, 2021: Per share data August 31, 2022 August 31, 2021 Net asset value at beginning of period $ 29.33 $ 27.25 Net investment income(1) 1.30 0.80 Net realized and unrealized gain and losses on investments(1) ( 1.25 ) 1.93 Realized losses on extinguishment of debt ( 0.10 ) ( 0.14 ) Net increase in net assets resulting from operations ( 0.05 ) 2.59 Distributions declared from net investment income ( 1.06 ) ( 0.87 ) Total distributions to stockholders ( 1.06 ) ( 0.87 ) Issuance of common stock above net asset value (2) - - Repurchases of common stock(3) 0.10 0.01 Dilution(4) ( 0.05 ) ( 0.01 ) Net asset value at end of period $ 28.27 $ 28.97 Net assets at end of period $ 337,213,275 $ 324,111,845 Shares outstanding at end of period 11,927,238 11,188,912 Per share market value at end of period $ 24.28 $ 28.70 Total return based on market value(5)(6) ( 7.67 )% 28.72 % Total return based on net asset value(5)(7) 0.69 % 10.02 % Ratio/Supplemental data: Ratio of net investment income to average net assets(8) 8.61 % 7.88 % Expenses: Ratios of Operating Expenses and Income Taxes to average net assets*(9) 6.68 % 5.83 % Ratio of incentive management fees to average net assets(5) ( 0.38 )% 2.30 % Ratio of interest and debt financing expenses to average net assets(9) 8.47 % 5.97 % Ratio of total expenses and income taxes to average net assets*(8) 14.77 % 14.10 % Portfolio turnover rate(5)(10) 11.83 % 23.67 % Asset coverage ratio per unit(11) 1,842 2,361 Average market value per unit Revolving Credit Facility(12) N/A N/A SBA Debentures Payable(12) N/A N/A 6.25% Notes Payable 2025(13) N/A $ 25.44 7.25% Notes Payable 2025(14) N/A $ 26.45 7.75% Notes Payable 2025(12) N/A N/A 4.375% Notes Payable(12) N/A N/A 6.25% Notes Payable 2027(12) N/A N/A 6.00% Notes Payable 2027 $ 24.53 N/A * Certain prior period amounts have been reclassified to conform to current period presentation. (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 11, Stockholders’ Equity. (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 13, Dividend. (5) Ratios are not annualized. (6) 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. 84 (7) 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. (8) Ratios are annualized. Incentive management fees included within the ratio are not annualized. (9) Ratios are annualized. (10) 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. (11) 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. (12) The Revolving Credit Facility, SBA Debentures, 7.75% Notes Payable 2025, 4.375% Notes Payable and 6.25% Notes Payable are not registered for public trading. (13) On August 31, 2021, the Company redeemed $60.0 million in aggregate principal amount of the issued and outstanding 6.25% 2025 Notes and, as a result of the full redemption, the 6.25% 2025 Notes are no longer listed on the NYSE. (14) On July 14, 2022, the Company redeemed $43.1 million in aggregate principal amount of the $43.1 million in aggregate principal amount of issued and outstanding 7.25% 2025 Notes and are no longer listed on the NYSE. Note 15. Subsequent Events The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q 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: On July 9, 2020, the Company entered into the Notes Purchase Agreement (the “Notes Purchase Agreement”) governing the issuance of its 7.75% Notes due 2025 in the aggregate principal amount of $ 5.0 million to an institutional investor (the “Purchaser”) in a private placement. Pursuant to the terms of the Notes Purchase Agreement, upon the mutual agreement of the Company and the Purchaser, the Company may issue additional notes with modified pricing terms, in the aggregate, up to a maximum of $ 50.0 million in one or more private offerings. On January 28, 2021, the Company entered into the First Supplemental Notes Purchase Agreement (the “First Supplemental Agreement”) governing the issuance of its 6.25% Notes due 2027 in the aggregate principal amount of $ 10.0 million to the Purchaser in a private placement. On September 8, 2022, the Company entered into the Second Supplemental Notes Purchase Agreement (the “Second Supplemental Agreement”) governing the issuance of its 7.00% Notes due 2025 (the “7.00% 2025 Notes”) in the aggregate principal amount of $ 12.0 million to the Purchaser in a private placement. In addition, pursuant to the Second Supplement Agreement, upon the mutual agreement of the Company and the Purchaser, the Purchaser may purchase from the Company up to an additional $ 8.0 million in aggregate principal amount of the 7.00% 2025 Notes by September 30, 2022, which did not occur. The 7.00% 2025 Notes were delivered and paid for on September 8, 2022. Upon the issuance of the 7.00% 2025 Notes, the outstanding aggregate principal amount of the Company’s unsecured notes held by the Purchaser under the Notes Purchase Agreement, the First Supplemental Agreement and the Second Supplemental Agreement, collectively, is $ 27.0 million. On September 29, 2022, the Company announced that it received notification from the Small Business Administration (the “SBA”) that the Company’s application for a third Small Business Investment Company (“SBIC”) license has been approved. The new SBIC license will provide up to $ 175 million in additional long-term capital in the form of SBA-guaranteed debentures, subject to the issuance of a leverage commitment by the SBA. Under current SBIC regulations, for two or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $350.0 million with at least $175.0 million in combined regulatory capital. 85 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form 10-Q. In addition to historical information, the following discussion and other parts of this Quarterly Report contain forward-looking information that involves risks and uncertainties. Our actual results could differ materially from those anticipated by such forward-looking information due to the factors discussed under “Note about Forward-Looking Statements” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended February 28, 2022. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or are within our control. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. The forward-looking statements contained in this Quarterly Report on Form 10-Q involve risks and uncertainties, including statements as to: ● our future operating results and the continued impact of coronavirus (“COVID-19”) pandemic thereon; ● the introduction, withdrawal, success and timing of business initiatives and strategies; ● changes in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in the value of our assets; ● the impact of geopolitical conditions, including the ongoing conflict between Ukraine and Russia and its impact on financial market volatility, global economic markets, and various sectors, industries and markets for commodities globally, such as oil and natural gas; ● the relative and absolute investment performance and operations of our Manager; ● the impact of increased competition; ● our ability to turn potential investment opportunities into transactions and thereafter into completed and successful investments; ● the unfavorable resolution of any future legal proceedings; ● our business prospects and the operational and financial performance of our portfolio companies, including their ability to achieve our respective objectives as a result of the current COVID-19 pandemic and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business; ● the impact of investments that we expect to make and future acquisitions and divestitures; ● our contractual arrangements and relationships with third parties; ● the dependence of our future success on the general economy and its impact on the industries in which we invest and the impact of the COVID-19 pandemic thereon; ● the ability of our portfolio companies to achieve their objectives; 86 ● our expected financings and investments; ● our regulatory structure and tax treatment, including our ability to operate as a business development company (“BDC”), or to operate our small business investment company (“SBIC”) subsidiaries, and to continue to qualify to be taxed as a regulated investment company (“RIC”); ● the adequacy of our cash resources and working capital; ● the timing of cash flows, if any, from the operations of our portfolio companies and the impact of the COVID-19 pandemic thereon; ● the impact of interest rate volatility, including the decommissioning of LIBOR and the rising interest rate environment, on our results, particularly because we use leverage as part of our investment strategy; ● the impact of supply chain constraints and labor difficulties on our portfolio companies and the global economy; ● the elevated level of inflation, and its impact on our portfolio companies and on the industries in which we invest; ● the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforceme