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 November 30, 2020

 

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
6.25% Notes due 2025   SAF   The New York Stock Exchange
7.25% Notes due 2025   SAK   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 January 6, 2021 was 11,170,028.

 

 

 

 

 

 

TABLE OF CONTENTS

 

 

 

    Page
PART I. FINANCIAL INFORMATION 1
     
Item 1. Consolidated Financial Statements 1
     
  Consolidated Statements of Assets and Liabilities as of November 30, 2020 (unaudited) and February 29, 2020 1
     
  Consolidated Statements of Operations for the three and nine months ended November 30, 2020 (unaudited) and November 30, 2019 (unaudited) 2
     
  Consolidated Statements of Changes in Net Assets for three and nine months ended November 30, 2020 (unaudited) and November 30, 2019 (unaudited) 3
     
  Consolidated Statements of Cash Flows for the three and nine months ended November 30, 2020 (unaudited) and November 30, 2019 (unaudited) 4
     
  Consolidated Schedules of Investments as of November 30, 2020 (unaudited) and February 29, 2020 5
     
  Notes to Consolidated Financial Statements as of November 30, 2020 (unaudited) 16
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 64
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 96
     
Item 4. Controls and Procedures 97
     
PART II. OTHER INFORMATION 98
     
Item 1. Legal Proceedings 98
     
Item 1A. Risk Factors 98
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 99
     
Item 3. Defaults Upon Senior Securities 99
     
Item 4. Mine Safety Disclosures 99
     
Item 5. Other Information 99
     
Item 6. Exhibits  100
     
Signatures 103

  

i

 

  

PART I. FINANCIAL INFORMATION

 

Item 1. Consolidated Financial Statements

 

Saratoga Investment Corp.

Consolidated Statements of Assets and Liabilities

 

   November 30,
2020
   February 29,
2020
 
   (unaudited)     
ASSETS        
Investments at fair value        
Non-control/Non-affiliate investments (amortized cost of $463,588,455 and $418,006,725, respectively)  $456,552,179   $420,442,928 
Affiliate investments (amortized cost of $28,338,471 and $23,998,917, respectively)   21,403,802    18,485,854 
Control investments (amortized cost of $65,055,003 and $44,293,619, respectively)   68,987,521    46,703,192 
Total investments at fair value (amortized cost of $556,981,929 and $486,299,261, respectively)   546,943,502    485,631,974 
Cash and cash equivalents   21,060,224    24,598,905 
Cash and cash equivalents, reserve accounts   12,836,663    14,851,447 
Interest receivable (net of reserve of $1,982,033 and $1,238,049, respectively)   4,192,177    4,810,456 
Management fee receivable   284,256    272,207 
Other assets   740,361    701,007 
Total assets  $586,057,183   $530,865,996 
           
LIABILITIES          
Revolving credit facility  $-   $- 
Deferred debt financing costs, revolving credit facility   (674,638)   (512,628)
SBA debentures payable   176,000,000    150,000,000 
Deferred debt financing costs, SBA debentures payable   (2,725,309)   (2,561,495)
6.25% Notes Payable 2025   60,000,000    60,000,000 
Deferred debt financing costs, 6.25% notes payable 2025   (1,766,709)   (2,046,735)
7.25% Notes Payable 2025   43,125,000    - 
Deferred debt financing costs, 7.25% notes payable 2025   (1,480,977)   - 
7.75% Notes Payable 2025   5,000,000    - 
Deferred debt financing costs, 7.75% notes payable 2025   (252,746)   - 
Base management and incentive fees payable   4,775,801    15,800,097 
Deferred tax liability   1,434,505    1,347,363 
Accounts payable and accrued expenses   1,514,585    1,713,157 
Interest and debt fees payable   931,938    2,234,042 
Directors fees payable   44,500    61,500 
Due to manager   278,343    543,842 
Total liabilities   286,204,293    226,579,143 
           
Commitments and contingencies (See Note 8)          
           
NET ASSETS          
Common stock, par value $0.001, 100,000,000 common shares authorized, 11,170,028 and 11,217,545 common shares issued and outstanding, respectively   11,170    11,218 
Capital in excess of par value   288,590,554    289,476,991 
Total distributable earnings   11,251,166    14,798,644 
Total net assets   299,852,890    304,286,853 
Total liabilities and net assets  $586,057,183   $530,865,996 
NET ASSET VALUE PER SHARE  $26.84   $27.13 

 

See accompanying notes to consolidated financial statements.

 

1

 

 

Saratoga Investment Corp.

Consolidated Statements of Operations

(unaudited)

 

   For the three months ended   For the nine months ended 
   November 30,
2020
   November 30,
2019
   November 30,
2020
   November 30,
2019
 
INVESTMENT INCOME                
Interest from investments                
Interest income:                
Non-control/Non-affiliate investments  $10,422,586   $9,749,294   $30,585,868   $26,862,643 
Affiliate investments   418,418    356,958    1,204,840    873,816 
Control investments   1,654,359    1,300,923    4,037,915    4,627,395 
Payment-in-kind interest income:                    
Non-control/Non-affiliate investments   214,422    198,984    1,125,306    530,728 
Affiliate investments   49,333    42,397    143,574    123,812 
Control investments   44,896    1,250,824    117,449    3,226,060 
Total interest from investments   12,804,014    12,899,380    37,214,952    36,244,454 
Interest from cash and cash equivalents   770    119,539    14,176    316,691 
Management fee income   623,817    629,671    1,883,825    1,888,932 
Structuring and advisory fee income*   545,354    511,500    1,798,660    1,875,225 
Other income*   308,802    35,665    523,862    509,850 
Total investment income   14,282,757    14,195,755    41,435,475    40,835,152 
                     
OPERATING EXPENSES                    
Interest and debt financing expenses   3,559,870    3,896,968    9,452,193    11,628,266 
Base management fees   2,324,564    2,146,214    6,694,144    5,955,623 
Incentive management fees expense (benefit)   2,295,000    3,102,139    1,966,367    7,300,794 
Professional fees   502,979    401,010    1,257,420    1,181,010 
Administrator expenses   693,750    556,250    1,852,083    1,575,000 
Insurance   67,010    63,936    202,463    193,174 
Directors fees and expenses   60,000    60,000    195,000    217,500 
General & administrative   278,734    395,024    963,372    1,036,498 
Income tax expense (benefit)   29,748    (1,001,089)   28,304    (1,464,878)
Total operating expenses   9,811,655    9,620,452    22,611,346    27,622,987 
NET INVESTMENT INCOME   4,471,102    4,575,303    18,824,129    13,212,165 
                     
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS                    
Net realized gain (loss) from investments:                    
Non-control/Non-affiliate investments   1,798    10,739,678    22,207    12,609,767 
Net realized gain (loss) from investments   1,798    10,739,678    22,207    12,609,767 
Income tax (provision) benefit from realized gain on investments   (3,895,354)   -    (3,895,354)   - 
Net change in unrealized appreciation (depreciation) on investments:                    
Non-control/Non-affiliate investments   4,348,888    (4,322,305)   (9,472,477)   (1,563,573)
Affiliate investments   385,414    (41,295)   (1,421,606)   859,953 
Control investments   1,264,528    3,827,449    1,522,945    5,614,471 
Net change in unrealized appreciation (depreciation) on investments   5,998,830    (536,151)   (9,371,138)   4,910,851 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments   (210,057)   (1,061,608)   (58,838)   (1,786,801)
Net realized and unrealized gain (loss) on investments   1,895,217    9,141,919    (13,303,123)   15,733,817 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $6,366,319   $13,717,222   $5,521,006   $28,945,982 
                     
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE  $0.57   $1.37   $0.49   $3.33 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED   11,169,817    10,036,086    11,198,287    8,702,190 

 

*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 nine months ended 
   November 30,
2020
   November 30,
2019
 
INCREASE (DECREASE) FROM OPERATIONS:        
Net investment income  $18,824,129   $13,212,165 
Net realized gain from investments   22,207    12,609,767 
Income tax (provision) benefit from realized gain on investments   (3,895,354)   - 
Net change in unrealized appreciation (depreciation) on investments   (9,371,138)   4,910,851 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments   (58,838)   (1,786,801)
Net increase (decrease) in net assets resulting from operations   5,521,006    28,945,982 
           
DECREASE FROM SHAREHOLDER DISTRIBUTIONS:          
Total distributions to shareholders   (9,068,484)   (13,835,741)
Net decrease in net assets from shareholder distributions   (9,068,484)   (13,835,741)
           
CAPITAL SHARE TRANSACTIONS:          
Proceeds from issuance of common stock   -    85,228,325 
Stock dividend distribution   1,580,919    2,188,811 
Repurchases of common stock   (2,464,661)   - 
Repurchase fees   (2,743)   - 
Offering costs   -    (1,222,214)
Net increase in net assets from capital share transactions   (886,485)   86,194,922 
Total increase (decrease) in net assets   (4,433,963)   101,305,163 
Net assets at beginning of period   304,286,853    180,875,187 
Net assets at end of period  $299,852,890   $282,180,350 

 

See accompanying notes to consolidated financial statements.

 

3

 

 

Saratoga Investment Corp.

Consolidated Statements of Cash Flows

(unaudited)

 

   For the nine months ended 
   November 30,
2020
   November 30,
2019
 
Operating activities        
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $5,521,006   $28,945,982 
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   1,402,751    (3,082,715)
Net accretion of discount on investments   (964,524)   (888,292)
Amortization of deferred debt financing costs   992,592    1,037,764 
Income tax expense (benefit)   28,304    - 
Net realized (gain) loss from investments   (22,207)   (12,609,767)
Net change in unrealized (appreciation) depreciation on investments   9,371,138    (4,910,851)
Net change in provision for deferred taxes on unrealized appreciation (depreciation) on investments   58,838    1,786,801 
Proceeds from sales and repayments of investments   50,928,681    97,152,448 
Purchases of investments   (122,027,366)   (160,672,062)
(Increase) decrease in operating assets:          
Interest receivable   618,279    (1,009,242)
Due from affiliate   -    1,673,747 
Management and incentive fee receivable   (12,049)   255,374 
Other assets   (59,043)   826 
Deferred tax asset   -    (1,464,878)
Increase (decrease) in operating liabilities:          
Base management and incentive fees payable   (11,024,296)   3,791,110 
Accounts payable and accrued expenses   (198,572)   (162,098)
Interest and debt fees payable   (1,302,104)   (1,314,274)
Directors fees payable   (17,000)   (60,500)
Due to manager   (265,499)   61,580 
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES   (66,971,071)   (51,469,047)
           
Financing activities          
Borrowings on debt   26,000,000    20,200,000 
Paydowns on debt   -    (20,200,000)
Issuance of notes   48,125,000    - 
Payments of deferred debt financing costs   (2,752,425)   (745,133)
Proceeds from issuance of common stock   -    84,064,237 
Payments of cash dividends   (7,487,565)   (11,646,930)
Repurchases of common stock   (2,464,661)   - 
Repurchases fees   (2,743)   - 
Payments of offering costs   -    (1,184,892)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES   61,417,606    70,487,282 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS   (5,553,465)   19,018,235 
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD   39,450,352    62,094,394 
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD  $33,896,887   $81,112,629 
           
Supplemental information:          
Interest paid during the period  $9,761,705   $11,904,776 
Cash paid for taxes   4,103,200    18,153 
Supplemental non-cash information:          
Payment-in-kind interest income   (1,402,751)   3,082,715 
Net accretion of discount on investments   964,524    888,292 
Amortization of deferred debt financing costs   992,592    1,037,764 
Stock dividend distribution   1,580,919    2,188,811 

 

See accompanying notes to consolidated financial statements.

 

4

 

 

Saratoga Investment Corp.

Consolidated Schedule of Investments

November 30, 2020

(unaudited)

 

Company  Industry  Investment Interest Rate/
Maturity
  Original Acquisition Date  Principal/
Number of Shares
   Cost   Fair Value (c)   % of
Net Assets
 
Non-control/Non-affiliate investments - 152.3% (b)                         
CoConstruct, LLC  Construction Management Services  First Lien Term Loan
(3M USD LIBOR+7.50%), 10.00% Cash, 7/5/2024
  7/5/2019  $14,200,000    14,077,075    14,134,680    4.7%
CoConstruct, LLC (j)  Construction Management Services  Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 10.00% Cash, 7/5/2024
  7/5/2019  $-    -    -    0.0%
      Total Construction Management Services           14,077,075    14,134,680    4.7%
Targus Holdings, Inc. (d), (h)  Consumer Products  Common Stock  12/31/2009   210,456    1,589,630    392,270    0.1%
      Total Consumer Products           1,589,630    392,270    0.1%
My Alarm Center, LLC (k)  Consumer Services  Preferred Equity Class A Units
8.00% PIK
  7/14/2017   2,227    2,357,879    -    0.0%
My Alarm Center, LLC (h)  Consumer Services  Preferred Equity Class B Units  7/14/2017   1,797    1,796,880    -    0.0%
My Alarm Center, LLC (h)  Consumer Services  Preferred Equity Class Z Units  9/12/2018   676    712,343    305,911    0.1%
My Alarm Center, LLC (h)  Consumer Services  Common Stock  7/14/2017   96,224    -    -    0.0%
      Total Consumer Services           4,867,102    305,911    0.1%
Passageways, Inc.  Corporate Governance  First Lien Term Loan
(3M USD LIBOR+7.00%), 8.75% Cash, 7/5/2023
  7/5/2018  $5,000,000    4,968,225    5,060,000    1.7%
Passageways, Inc. (j)  Corporate Governance  Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 8.75% Cash, 7/5/2023
  1/3/2020  $2,000,000    1,992,775    2,024,000    0.6%
Passageways, Inc. (h)  Corporate Governance  Series A Preferred Stock  7/5/2018   2,027,205    1,000,000    2,438,010    0.8%
      Total Corporate Governance           7,961,000    9,522,010    3.1%
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    6,489,677    6,489,450    2.2%
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  $-    -    -    0.0%
      Total Dental Practice Management           6,489,677    6,489,450    2.2%
PDDS Buyer, LLC  Dental Practice Management Software  First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024
  7/15/2019  $14,000,000    13,887,080    13,953,800    4.7%
PDDS Buyer, LLC  Dental Practice Management Software  Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024
  7/15/2019  $7,000,000    6,933,884    6,976,900    2.3%
PDDS Buyer, LLC (h)  Dental Practice Management Software  Series A-1 Preferred Shares  8/10/2020   1,755,831    2,000,000    2,000,000    0.7%
      Total Dental Practice Management Software           22,820,964    22,930,700    7.7%

 

See accompanying notes to consolidated financial statements.

5

 

Company  Industry  Investment Interest Rate/
Maturity
  Original Acquisition Date  Principal/
Number of Shares
   Cost   Fair Value (c)   % of
Net Assets
 
C2 Educational Systems (d)  Education Services  First Lien Term Loan
(3M USD LIBOR+7.00%), 8.50% Cash, 5/31/2021
  5/31/2017  $16,000,000    15,993,296    12,987,200    4.3%
Texas Teachers of Tomorrow, LLC (h), (i)  Education Services  Common Stock  12/2/2015   750    750,000    789,168    0.3%
Texas Teachers of Tomorrow, LLC (d)  Education Services  First Lien Term Loan
(3M USD LIBOR+7.25%), 9.75% Cash, 6/28/2024
  6/28/2019  $18,709,024    18,564,444    18,581,803    6.2%
      Total Education Services           35,307,740    32,358,171    10.8%
Destiny Solutions Inc. (d)  Education Software  First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 10/24/2024
  5/16/2018  $38,000,000    37,731,402    37,730,200    12.6%
Destiny Solutions Inc. (h), (i)  Education Software  Limited Partner Interests  5/16/2018   2,342    2,468,464    3,010,778    1.0%
Identity Automation Systems (d)  Education Software  First Lien Term Loan
(3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024
  8/25/2014  $17,291,250    17,287,446    17,180,585    5.7%
Identity Automation Systems (h)  Education Software  Common Stock Class A-2 Units  8/25/2014   232,616    232,616    697,848    0.2%
Identity Automation Systems (h)  Education Software  Common Stock Class A-1 Units  3/6/2020   43,715    171,571    181,935    0.1%
GoReact  Education Software  First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025
  1/17/2020  $5,000,000    4,937,712    5,076,000    1.7%
GoReact (j)  Education Software  Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025
  1/17/2020  $-    -    -    0.0%
Kev Software Inc. (a)  Education Software  First Lien Term Loan
(1M USD LIBOR+8.63%), 9.63% Cash, 9/13/2023
  9/13/2018  $21,070,667    20,954,138    20,735,644    6.9%
      Total Education Software           83,783,349    84,612,990    28.2%
Davisware, LLC  Field Service Management  First Lien Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024
  9/6/2019  $3,000,000    2,975,581    2,980,500    1.0%
Davisware, LLC (j)  Field Service Management  Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024
  9/6/2019  $977,790    969,611    971,434    0.3%
      Total Field Service Management           3,945,192    3,951,934    1.3%
GDS Software Holdings, LLC  (h)  Financial Services  Common Stock Class A Units  8/23/2018   250,000    250,000    424,507    0.1%
      Total Financial Services           250,000    424,507    0.1%
Ohio Medical, LLC (h)  Healthcare Products Manufacturing  Common Stock  1/15/2016   5,000    500,000    852,968    0.3%
Ohio Medical, LLC  Healthcare Products Manufacturing  Senior Subordinated Note
12.00% Cash, 6/30/2022
  1/15/2016  $7,300,000    7,285,925    7,300,000    2.4%
      Total Healthcare Products Manufacturing           7,785,925    8,152,968    2.7%
Axiom Parent Holdings, LLC (h)  Healthcare Services  Common Stock Class A Units  6/19/2018   400,000    400,000    1,443,763    0.5%
Axiom Purchaser, Inc. (d)  Healthcare Services  First Lien Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023
  6/19/2018  $10,000,000    9,948,656    10,018,000    3.3%
Axiom Purchaser, Inc. (d)  Healthcare Services  Delayed Draw Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023
  6/19/2018  $4,000,000    3,974,808    4,007,200    1.3%
ComForCare Health Care  Healthcare Services  First Lien Term Loan
(3M USD LIBOR+7.50%), 8.50% Cash, 1/31/2022
  1/31/2017  $15,000,000    14,955,975    15,000,000    5.0%
      Total Healthcare Services           29,279,439    30,468,963    10.1%

 

See accompanying notes to consolidated financial statements.

6

 

Company  Industry  Investment Interest Rate/
Maturity
  Original Acquisition Date  Principal/
Number of Shares
   Cost   Fair Value (c)   % of
Net Assets
 
TRC HemaTerra, LLC (h)  Healthcare Software  Class D Membership Interests  4/15/2019   2,000,000    2,000,000    2,471,900    0.8%
HemaTerra Holding Company, LLC  Healthcare Software  First Lien Term Loan
(3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024
  4/15/2019  $6,000,000    5,952,752    6,072,600    2.0%
HemaTerra Holding Company, LLC (d), (j)  Healthcare Software  Delayed Draw Term Loan
(3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024
  4/15/2019  $12,000,000    11,907,646    12,145,200    4.1%
Procurement Partners, LLC  Healthcare Software  First Lien Term Loan
(3M USD LIBOR+6.50%), 7.50% Cash, 11/12/2025
  11/12/2020  $8,000,000    7,921,058    7,920,000    2.6%
Procurement Partners, LLC (j)  Healthcare Software  Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 7.50% Cash, 11/12/2025
  11/12/2020  $-    -    -    0.0%
Procurement Partners Holdings LLC (h)  Healthcare Software  Class A Units  11/12/2020   300,000    300,000    300,000    0.1%
      Total Healthcare Software           28,081,456    28,909,700    9.6%
Roscoe Medical, Inc. (d), (h)  Healthcare Supply  Common Stock  3/26/2014   5,081    508,077    138,107    0.0%
Roscoe Medical, Inc. (k)  Healthcare Supply  Second Lien Term Loan
11.25% Cash, 3/28/2021
  3/26/2014  $4,200,000    4,200,000    4,200,000    1.4%
      Total Healthcare Supply           4,708,077    4,338,107    1.4%
Knowland Group, LLC  Hospitality/Hotel  Second Lien Term Loan
(3M USD LIBOR+8.00%), 10.00% Cash, 5/9/2024
  11/9/2018  $15,767,918    15,767,918    12,117,645    3.9%
Sceptre Hospitality Resources, LLC  Hospitality/Hotel  First Lien Term Loan
(1M USD LIBOR+9.00%), 10.00% Cash, 4/27/2025
  4/27/2020  $3,000,000    2,972,698    2,970,000    1.0%
      Total Hospitality/Hotel           18,740,616    15,087,645    4.9%
Granite Comfort, LP  HVAC Services and Sales  First Lien Term Loan
(1M USD LIBOR+9.00%), 10.00% Cash, 11/16/2025
  11/16/2020  $7,000,000    6,930,701    6,930,000    2.3%
Granite Comfort, LP (j)  HVAC Services and Sales  Delayed Draw Term Loan
(1M USD LIBOR+9.00%), 10.00% Cash, 11/16/2025
  11/16/2020  $-    -    -    0.0%
      Total HVAC Services and Sales           6,930,701    6,930,000    2.3%
Vector Controls Holding Co., LLC (d)  Industrial Products  First Lien Term Loan
11.50% (9.75% Cash/1.75% PIK), 3/6/2022
  3/6/2013  $7,590,846    7,590,236    7,544,542    2.5%
Vector Controls Holding Co., LLC (d), (h)  Industrial Products  Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027  5/31/2015   343    -    1,957,083    0.7%
      Total Industrial Products           7,590,236    9,501,625    3.2%
CLEO Communications Holding, LLC (d)  IT Services  First Lien Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash/2.00% PIK, 3/31/2022
  3/31/2017  $14,003,828    13,991,467    14,136,865    4.7%
CLEO Communications Holding, LLC (d), (j)  IT Services  Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash/2.00% PIK, 3/31/2022
  3/31/2017  $20,349,838    20,270,501    20,543,161    6.9%
Erwin, Inc. (d)  IT Services  Second Lien Term Loan
(3M USD LIBOR+10.75%), 12.75% Cash/1.00% PIK, 8/28/2021
  2/29/2016  $16,172,271    16,143,067    16,172,270    5.4%
LogicMonitor, Inc.  IT Services  First Lien Term Loan
(3M USD LIBOR+5.00), 6.00% Cash, 5/17/2023
  3/20/2020  $18,000,000    17,889,800    17,847,000    6.0%
      Total IT Services           68,294,835    68,699,296    23.0%
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    12,108,936    12,200,000    4.1%
inMotionNow, Inc.  Marketing Services  Delayed Draw Term Loan
(3M USD LIBOR+7.50)  10.00% Cash, 5/15/2024
  5/15/2019  $5,000,000    4,957,043    5,000,000    1.7%
      Total Marketing Services           17,065,979    17,200,000    5.8%

 

See accompanying notes to consolidated financial statements.

7

 

Company  Industry  Investment Interest Rate/
Maturity
  Original Acquisition Date  Principal/
Number of Shares
   Cost   Fair Value (c)   % of
Net Assets
 
Omatic Software, LLC  Non-profit Services  First Lien Term Loan
(3M USD LIBOR+8.00%), 9.75% Cash, 5/29/2023
  5/29/2018  $5,500,000    5,467,123    5,525,300    1.8%
      Total Non-profit Services           5,467,123    5,525,300    1.8%
Emily Street Enterprises, L.L.C.  Office Supplies  Senior Secured Note
(3M USD LIBOR+8.50%), 10.00% Cash, 12/31/2020
  12/28/2012  $3,300,000    3,300,000    3,278,880    1.1%
Emily Street Enterprises, L.L.C. (h)  Office Supplies  Warrant Membership Interests
Expires 12/28/2022
  12/28/2012   49,318    400,000    247,814    0.1%
      Total Office Supplies           3,700,000    3,526,694    1.2%
Apex Holdings Software Technologies, LLC  Payroll Services  First Lien Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2021
  9/21/2016  $18,000,000    17,973,081    17,620,200    5.9%
Apex Holdings Software Technologies, LLC  Payroll Services  Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2021
  10/1/2018  $1,500,000    1,495,547    1,468,350    0.5%
      Total Payroll Services           19,468,628    19,088,550    6.4%
Village Realty Holdings LLC  Property Management  First Lien Term Loan
(3M USD LIBOR+6.50%), 8.75% Cash, 10/8/2024
  10/8/2019  $7,250,000    7,186,815    7,264,500    2.4%
Village Realty Holdings LLC (j)  Property Management  Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 8.75% Cash, 10/8/2024
  10/8/2019  $4,876,322    4,835,575    4,886,075    1.7%
V Rental Holdings LLC (h)  Property Management  Class A-1 Membership Units  10/8/2019   122,578    365,914    822,228    0.3%
      Total Property Management           12,388,304    12,972,803    4.4%
Buildout, Inc.  Real Estate Services  First Lien Term Loan
(3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025
  7/9/2020  $14,000,000    13,867,762    13,860,000    4.6%
Buildout, Inc. (h), (i)  Real Estate Services  Limited Partner Interests  7/9/2020   999    999,000    999,000    0.4%
      Total Real Estate Services           14,866,762    14,859,000    5.0%
TMAC Acquisition Co., LLC (k)  Restaurant  Unsecured Term Loan
8.00% PIK, 9/01/2023
  3/1/2018  $2,261,017    2,261,017    1,984,653    0.7%
      Total Restaurant           2,261,017    1,984,653    0.7%
ArbiterSports, LLC (d)  Sports Management  First Lien Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025
  2/21/2020  $26,000,000    25,793,049    23,613,200    7.9%
ArbiterSports, LLC (d)  Sports Management  Delayed Draw Term Loan
(3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025
  2/21/2020  $1,000,000    1,000,000    908,200    0.3%
      Total Sports Management           26,793,049    24,521,400    8.3%
Avionte Holdings, LLC (h)  Staffing Services  Class A Units  1/8/2014   100,000    100,000    693,452    0.2%
      Total Staffing Services           100,000    693,452    0.2%

 

See accompanying notes to consolidated financial statements.

8

 

Company  Industry  Investment Interest Rate/
Maturity
  Original Acquisition Date  Principal/
Number of Shares
   Cost   Fair Value (c)   % of
Net Assets
 
National Waste Partners (d)  Waste Services  Second Lien Term Loan
10.00% Cash, 2/13/2022
  2/13/2017  $9,000,000    8,974,579    8,969,400    3.0%
      Total Waste Services           8,974,579    8,969,400    3.0%
Sub Total Non-control/Non-affiliate investments                 463,588,455    456,552,179    152.3%
Affiliate investments - 7.1% (b)                             
GreyHeller LLC (f)  Cyber Security  First Lien Term Loan
(3M USD LIBOR+11.00%), 12.00% Cash, 11/16/2021
  11/17/2016  $7,000,000    6,982,889    6,983,200    2.4%
GreyHeller LLC (d), (f)  Cyber Security  Delayed Draw Term Loan
(3M USD LIBOR+11.00%), 12.00% Cash, 11/16/2021
  10/19/2020  $2,250,000    2,229,956    2,244,600    0.7%
GreyHeller LLC (f), (h)  Cyber Security  Series A Preferred Units  11/17/2016   850,000    850,000    3,640,200    1.2%
      Total Cyber Security           10,062,845    12,868,000    4.3%
Top Gun Pressure Washing, LLC (f)  Facilities Maintenance  First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024
  8/12/2019  $5,000,000    4,959,412    4,644,000    1.5%
Top Gun Pressure Washing, LLC (f), (j)  Facilities Maintenance  Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024
  8/12/2019  $1,825,000    1,809,473    1,695,060    0.6%
TG Pressure Washing Holdings, LLC (f), (h)  Facilities Maintenance  Preferred Equity  8/12/2019   488,148    488,149    199,100    0.1%
      Total Facilities Maintenance           7,257,034    6,538,160    2.2%
Elyria Foundry Company, L.L.C. (d), (f)  Metals  Second Lien Term Loan
15.00% PIK, 8/10/2022
  7/30/2010  $1,333,565    1,333,564    1,267,154    0.4%
Elyria Foundry Company, L.L.C. (d), (f), (h)  Metals  Common Stock  7/30/2010   60,000    9,685,028    730,488    0.2%
      Total Metals           11,018,592    1,997,642    0.6%
Sub Total Affiliate investments                 28,338,471    21,403,802    7.1%
Control investments - 23.0% (b)                             
Netreo Holdings, LLC (g)  IT Services  First Lien Term Loan
(3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK,
7/3/2023
  7/3/2018  $5,271,157    5,238,302    5,272,738    1.8%
Netreo Holdings, LLC (g)  IT Services  Delayed Draw Term Loan
(3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK,
7/3/2023
  5/26/2020  $1,217,338    1,206,896    1,217,703    0.4%
Netreo Holdings, LLC (g), (h)  IT Services  Common Stock Class A Unit  7/3/2018   3,150,000    3,150,000    6,365,883    2.2%
      Total IT Services           9,595,198    12,856,324    4.4%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g)  Structured Finance Securities  Other/Structured Finance Securities
22.02%, 1/20/2030
  1/22/2008  $69,500,000    20,459,805    21,536,355    7.2%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-2 Note (a), (g)  Structured Finance Securities  Other/Structured Finance Securities
(3M USD LIBOR+8.75%), 8.98%, 1/20/2030
  12/14/2018  $2,500,000    2,500,000    2,435,250    0.7%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class G-R-2 Note (a), (g)  Structured Finance Securities  Other/Structured Finance Securities
(3M USD LIBOR+10.00%), 10.23%, 1/20/2030
  12/14/2018  $7,500,000    7,500,000    7,327,500    2.4%
Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd. (a), (g)  Structured Finance Securities  Unsecured Loan
(3M USD LIBOR+4.46%), 4.69%, 8/20/2021
  2/18/2020  $25,000,000    25,000,000    24,832,092    8.3%
      Total Structured Finance Securities           55,459,805    56,131,197    18.6%
Sub Total Control investments                 65,055,003    68,987,521    23.0%
TOTAL INVESTMENTS - 182.4% (b)                $556,981,929   $546,943,502    182.4%

 

See accompanying notes to consolidated financial statements.

9

 

 

   Number of Shares   Cost   Fair Value   % of
Net Assets
 
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 11.3% (b)                    
U.S. Bank Money Market (l)   33,896,887   $33,896,887   $33,896,887    11.3%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts   33,896,887   $33,896,887   $33,896,887    11.3%

 

(a)Represents an ineligible investment as defined under Section 55(a) of the Investment Company Act of 1940, as amended. As of November 30, 2020 non-qualifying assets represent 14.1% of the Company's portfolio at fair value. As a BDC, the Company can only invest 30% of its portfolio in non-qualifying assets.
(b)Percentages are based on net assets of $299,852,890 as of November 30, 2020.
(c)Because there is no readily available market value for these investments, the fair values of these investments were determined using significant unobservable inputs and approved in good faith by our board of directors. These investments have been included as Level 3 in the Fair Value Hierarchy (see Note 3 to the consolidated financial statements).
(d)These securities are either fully or partially pledged as collateral under a senior secured revolving credit facility (see Note 7 to the consolidated financial statements).
(e)This investment does not have a stated interest rate that is payable thereon. As a result, the 22.02% 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 Investment Company Act, this portfolio company is an Affiliate as we own between 5.0% and 25.0% of the voting securities. Transactions during the nine months ended November 30, 2020 in which the issuer was an Affiliate are as follows:

 

Company  Purchases   Sales   Total Interest from Investments   Management Fee Income   Net Realized
Gain (Loss) from Investments
   Net Change in Unrealized Appreciation (Depreciation) 
Elyria Foundry Company, L.L.C.  $-   $-   $143,574   $-   $-   $(1,275,722)
GreyHeller LLC   2,227,500    -    701,592    -    -    644,761 
Top Gun Pressure Washing, LLC   1,806,750    -    503,248    -    -    (501,596)
TG Pressure Washing Holdings, LLC   138,148    -    -    -    -    (289,049)
Total  $4,219,898   $-   $1,348,414   $-   $-   $(1,421,606)

 

(g)As defined in the Investment Company Act, we "Control" this portfolio company because we own more than 25% of the portfolio company's outstanding voting securities. Transactions during the nine months ended November 30, 2020 in which the issuer was both an Affiliate and a portfolio company that we Control are as follows:

 

Company  Purchases   Sales   Total Interest from Investments   Management Fee Income   Net Realized
Gain (Loss) from Investments
   Net Change in Unrealized Appreciation (Depreciation) 
Netreo Holdings, LLC  $1,188,000   $-   $541,309   $-   $-   $(494,344)
Saratoga Investment Corp. CLO 2013-1, Ltd.   -    -    2,426,007    1,883,825    -    2,039,738 
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-2 Notes   -    -    182,964    -    -    (42,750)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class G-R-2 Notes   -    -    620,508    -    -    (107,250)
Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd. (j)   22,500,000    -    384,576    -    -    127,551 
Total  $23,688,000   $-   $4,155,364   $1,883,825   $-   $1,522,945 

 

(h)Non-income producing at November 30, 2020.
(i)Includes securities issued by an affiliate of the Company.
(j)All or a portion of this investment has an unfunded commitment as of November 30, 2020. (see Note 8 to the consolidated financial statements).
(k)As of November 30, 2020, the investment was on non-accrual status. The fair value of these investments was approximately $6.2 million, which represented 1.1% 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 November 30, 2020.

 

LIBOR - London Interbank Offered Rate

 

1M USD LIBOR - The 1 month USD LIBOR rate as of November 30, 2020 was 0.15%.

3M USD LIBOR - The 3 month USD LIBOR rate as of November 30, 2020 was 0.23%.

PIK - Payment-in-Kind (see Note 2 to the consolidated financial statements).

 

See accompanying notes to consolidated financial statements.

10

 

  

Saratoga Investment Corp.

Consolidated Schedule of Investments

February 29, 2020

 

Company  Industry  Investment
Interest Rate/
Maturity
  Original
Acquisition
Date
  Principal/
Number of
Shares
   Cost   Fair Value (c)   % of
Net Assets
 
Non-control/Non-affiliate investments - 138.2% (b)                             
CoConstruct, LLC  Construction Management Services  First Lien Term Loan
(3M USD LIBOR+7.50%), 10.00% Cash, 7/5/2024
  7/5/2019  $4,200,000    4,161,917    4,284,000    1.4%
CoConstruct, LLC (j)  Construction Management Services  Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 10.00% Cash, 7/5/2024
  7/5/2019  $-    -    -    0.0%
      Total Construction Management Services           4,161,917    4,284,000    1.4%
Targus Holdings, Inc. (h)  Consumer Products  Common Stock  12/31/2009   210,456    1,589,630    417,619    0.1%
      Total Consumer Products           1,589,630    417,619    0.1%
My Alarm Center, LLC (k)  Consumer Services  Preferred Equity Class A Units
8.00% PIK
  7/14/2017   2,227    2,357,879    -    0.0%
My Alarm Center, LLC (h)  Consumer Services  Preferred Equity Class B Units  7/14/2017   1,797    1,796,880    -    0.0%
My Alarm Center, LLC (h)  Consumer Services  Preferred Equity Class Z Units  9/12/2018   676    712,343    1,997,158    0.6%
My Alarm Center, LLC (h)  Consumer Services  Common Stock  7/14/2017   96,224    -    -    0.0%
      Total Consumer Services           4,867,102    1,997,158    0.60%
Passageways, Inc.  Corporate Governance  First Lien Term Loan
(3M USD LIBOR+7.00%), 8.75% Cash, 7/5/2023
  7/5/2018  $5,000,000    4,961,214    5,034,500    1.7%
Passageways, Inc. (j)  Corporate Governance  Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 8.75% Cash, 7/5/2023
  1/3/2020  $2,000,000    1,991,001    2,013,800    0.7%
Passageways, Inc. (h)  Corporate Governance  Series A Preferred Stock  7/5/2018   2,027,205    1,000,000    2,042,180    0.8%
      Total Corporate Governance           7,952,215    9,090,480    0.03 
C2 Educational Systems (d)  Education Services  First Lien Term Loan
(3M USD LIBOR+7.00%), 8.50% Cash, 5/31/2020
  5/31/2017  $16,000,000    15,981,853    16,000,000    5.3%
Texas Teachers of Tomorrow, LLC (h), (i)  Education Services  Common Stock  12/2/2015   750,000    750,000    703,910    0.2%
Texas Teachers of Tomorrow, LLC (d)  Education Services  First Lien Term Loan
(3M USD LIBOR+7.25%), 9.75% Cash, 6/28/2024
  6/28/2019  $19,661,200    19,483,213    19,661,200    6.5%
      Total Education Services           36,215,066    36,365,110    12.0%
Destiny Solutions Inc. (d)  Education Software  First Lien Term Loan
(3M USD LIBOR+7.25%), 9.25% Cash, 10/23/2024
  5/16/2018  $36,000,000    35,686,318    35,888,400    11.8%
Destiny Solutions Inc. (h), (i)  Education Software  Limited Partner Interests  5/16/2018   2,342    2,468,464    2,805,839    0.9%
Identity Automation Systems (h)  Education Software  Common Stock Class A Units  8/25/2014   232,616    232,616    860,269    0.4%
Identity Automation Systems (d)  Education Software  First Lien Term Loan
(3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024
  8/25/2014  $15,422,500    15,389,090    15,524,289    5.1%
EMS LINQ, Inc.  Education Software  First Lien Term Loan
(1M USD LIBOR+8.50%), 10.02% Cash, 8/9/2024
  8/9/2019  $14,925,000    14,780,293    14,823,510    4.8%
GoReact  Education Software  First Lien Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025
  1/17/2020  $5,000,000    4,930,819    4,950,000    1.6%
GoReact (j)  Education Software  Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025
  1/17/2020  $-    -    -    0.0%
Kev Software Inc. (a)  Education Software  First Lien Term Loan
(1M USD LIBOR+8.63%), 10.15% Cash, 9/13/2023
  9/13/2018  $21,231,923    21,086,573    21,202,198    7.0%
      Total Education Software           94,574,173    96,054,505    31.6%
Davisware, LLC  Field Service Management  First Lien Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024
  9/6/2019  $3,000,000    2,971,896    2,970,000    1.0%
Davisware, LLC (j)  Field Service Management  Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024
  9/6/2019  $-    -    -    0.0%
      Total Field Service Management           2,971,896    2,970,000    1.0%

 

See accompanying notes to consolidated financial statements.

11

 

Company  Industry  Investment
Interest Rate/
Maturity
  Original
Acquisition
Date
  Principal/
Number of
Shares
   Cost   Fair Value (c)   % of
Net Assets
 
GDS Holdings US, Inc. (d)  Financial Services  First Lien Term Loan
(3M USD LIBOR+7.00%), 8.50% Cash, 8/23/2023
  8/23/2018  $7,500,000    7,444,170    7,650,000    2.5%
GDS Holdings US, Inc. (d)  Financial Services  Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 8.50% Cash, 8/23/2023
  8/23/2018  $1,000,000    990,526    1,020,000    0.3%
GDS Software Holdings, LLC  (h)  Financial Services  Common Stock Class A Units  8/23/2018   250,000    250,000    421,291    0.1%
FMG Suite Holdings, LLC (d)  Financial Services  Second Lien Term Loan
(1M USD LIBOR+8.00%), 9.52% Cash, 11/16/2023
  5/16/2018  $23,000,000    22,863,835    23,000,000    7.6%
      Total Financial Services           31,548,531    32,091,291    10.5%
Ohio Medical, LLC (h)  Healthcare Products Manufacturing  Common Stock  1/15/2016   5,000    500,000    416,550    0.1%
Ohio Medical, LLC  Healthcare Products Manufacturing  Senior Subordinated Note
12.00% Cash, 7/15/2021
  1/15/2016  $7,300,000    7,274,482    7,300,000    2.4%
      Total Healthcare Products Manufacturing           7,774,482    7,716,550    2.5%
Axiom Parent Holdings, LLC (h)  Healthcare Services  Common Stock Class A Units  6/19/2018   400,000    400,000    428,706    0.1%
Axiom Purchaser, Inc. (d)  Healthcare Services  First Lien Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023
  6/19/2018  $10,000,000    9,936,612    9,944,000    3.3%
Axiom Purchaser, Inc. (d), (j)  Healthcare Services  Delayed Draw Term Loan
(3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023
  6/19/2018  $3,000,000    2,977,619    2,983,200    1.0%
ComForCare Health Care  Healthcare Services  First Lien Term Loan
(3M USD LIBOR+7.50%), 8.96% Cash, 1/31/2022
  1/31/2017  $15,000,000    14,929,216    15,099,000    5.0%
      Total Healthcare Services           28,243,447    28,454,906    9.4%
HemaTerra Holding Company, LLC  Healthcare Software  First Lien Term Loan
(3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024
  4/15/2019  $6,000,000    5,944,473    6,120,000    2.0%
HemaTerra Holding Company, LLC (j)  Healthcare Software  Delayed Draw Term Loan
(3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024
  4/15/2019  $10,000,000    9,912,295    10,200,000    3.4%
TRC HemaTerra, LLC (h)  Healthcare Software  Class D Membership Interests  4/15/2019   2,000,000    2,000,000    2,259,190    0.7%
PDDS Buyer, LLC  Healthcare Software  First Lien Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024
  7/15/2019  $12,000,000    11,888,585    12,184,800    4.0%
PDDS Buyer, LLC (j)  Healthcare Software  Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024
  7/15/2019  $-    -    -    0.0%
      Total Healthcare Software           29,745,353    30,763,990    10.1%
Roscoe Medical, Inc. (h)  Healthcare Supply  Common Stock  3/26/2014   5,081    508,077    -    0.0%
Roscoe Medical, Inc. (k)  Healthcare Supply  Second Lien Term Loan
11.25% Cash, 3/28/2021
  3/26/2014  $4,200,000    4,200,000    2,136,960    0.7%
      Total Healthcare Supply           4,708,077    2,136,960    0.7%
Knowland Group, LLC  Hospitality/Hotel  Second Lien Term Loan
(3M USD LIBOR+8.00%), 10.00% Cash, 5/9/2024
  11/9/2018  $15,000,000    15,000,000    14,893,500    4.9%
      Total Hospitality/Hotel           15,000,000    14,893,500    4.9%
Vector Controls Holding Co., LLC (d)  Industrial Products  First Lien Term Loan
10.50% (9.00% Cash/1.50% PIK), 3/6/2022
  3/6/2013  $7,849,846    7,849,846    7,928,345    2.6%
Vector Controls Holding Co., LLC (h)  Industrial Products  Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027  5/31/2015   343    -    2,850,231    0.9%
      Total Industrial Products           7,849,846    10,778,576    3.5%
CLEO Communications Holding, LLC  IT Services  First Lien Term Loan
(3M USD LIBOR+8.00%), 9.46% Cash/2.00% PIK, 3/31/2022
  3/31/2017  $13,791,686    13,773,206    14,048,211    4.6%
CLEO Communications Holding, LLC  IT Services  Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 9.46% Cash/2.00% PIK, 3/31/2022
  3/31/2017  $20,041,560    19,919,746    20,414,333    6.7%
Erwin, Inc. (d)  IT Services  Second Lien Term Loan
(3M USD LIBOR+11.50%), 12.96% Cash/1.00% PIK, 8/28/2021
  2/29/2016  $16,049,804    15,990,286    16,049,804    5.3%
      Total IT Services           49,683,238    50,512,348    16.6%
inMotionNow, Inc.  Marketing Services  First Lien Term Loan
(3M USD LIBOR+7.25), 9.75% Cash, 5/15/2024
  5/15/2019  $12,200,000    12,094,364    12,200,000    4.1%
inMotionNow, Inc. (j)  Marketing Services  Delayed Draw Term Loan
(3M USD LIBOR+7.25)  9.75% Cash, 5/15/2024
  5/15/2019  $2,000,000    1,981,329    2,000,000    0.0%
      Total Marketing Services           14,075,693    14,200,000    4.1%
Omatic Software, LLC  Non-profit Services