SEC Filing | Saratoga Investment Corp

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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, 2021

☐ 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
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 5, 2022 was 12,101,706.

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, 2021 (unaudited) and February 28, 2021	1

	Consolidated Statements of Operations for the three and nine months ended November 30, 2021 (unaudited) and November 30, 2020 (unaudited)	2

	Consolidated Statements of Changes in Net Assets for three and nine months ended November 30, 2021 (unaudited) and November 30, 2020 (unaudited)	3

	Consolidated Statements of Cash Flows for the nine months ended November 30, 2021 (unaudited) and November 30, 2020 (unaudited) Consolidated Schedules of Investments as of November 30, 2021 (unaudited) and February 28, 2021	4

	Notes to Consolidated Financial Statements as of November 30, 2021 (unaudited)	15

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	70

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	103

Item 4.	Controls and Procedures	104

PART II.	OTHER INFORMATION	105

Item 1.	Legal Proceedings	105

Item 1A.	Risk Factors	105

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	106

Item 3.	Defaults Upon Senior Securities	106

Item 4.	Mine Safety Disclosures	106

Item 5.	Other Information	106

Item 6.	Exhibits	107

Signatures		109

PART I. FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

Saratoga Investment Corp.

Consolidated Statements of Assets and Liabilities

(unaudited)

	November 30, 2021			February 28, 2021
	(unaudited)
ASSETS
Investments at fair value
Non-control/Non-affiliate investments (amortized cost of $536,539,603 and $471,328,212, respectively)	$	546,750,922		$	469,946,494
Affiliate investments (amortized cost of $40,075,633 and $17,331,707, respectively)		40,442,980			19,367,740
Control investments (amortized cost of $66,732,240 and $61,353,761, respectively)		74,599,110			64,998,481
Total investments at fair value (amortized cost of $643,347,476 and $550,013,680, respectively)		661,793,012			554,312,715
Cash and cash equivalents		120,881,990			18,828,047
Cash and cash equivalents, reserve accounts		23,186,481			11,087,027
Interest receivable (net of reserve of $0 and $1,152,086, respectively)		4,566,798			4,223,630
Due from affiliate (See Note 6)		-			2,719,000
Management fee receivable		364,715			34,644
Other assets		920,315			947,315
Total assets	$	811,713,311		$	592,152,378

LIABILITIES
Revolving credit facility	$	12,500,000		$	-
Deferred debt financing costs, revolving credit facility		(1,291,999	)		(639,982	)
SBA debentures payable		207,000,000			158,000,000
Deferred debt financing costs, SBA debentures payable		(4,302,019	)		(2,642,622	)
6.25% Notes Payable 2025		-			60,000,000
Deferred debt financing costs, 6.25% notes payable 2025		-			(1,675,064	)
7.25% Notes Payable 2025		43,125,000			43,125,000
Deferred debt financing costs, 7.25% notes payable 2025		(1,157,871	)		(1,401,307	)
7.75% Notes Payable 2025		5,000,000			5,000,000
Deferred debt financing costs, 7.75% notes payable 2025		(197,899	)		(239,222	)
4.375% Notes Payable 2026		175,000,000			-
Premium on 4.375% notes payable 2026		1,157,187			-
Deferred debt financing costs, 4.375% notes payable 2026		(3,603,177	)		-
6.25% Notes Payable 2027		15,000,000			15,000,000
Deferred debt financing costs, 6.25% notes payable 2027		(433,835	)		(476,820	)
Base management and incentive fees payable		12,081,266			6,556,674
Deferred tax liability		1,053,564			1,922,664
Accounts payable and accrued expenses		1,961,075			1,750,266
Current income tax payable		2,833,988			-
Interest and debt fees payable		3,096,334			2,645,784
Directors fees payable		-			70,500
Due to manager		289,952			279,065
Excise tax payable		-			691,672
Total liabilities		469,111,566			287,966,608

Commitments and contingencies (See Note 8)

NET ASSETS
Common stock, par value $0.001, 100,000,000 common shares
authorized, 11,747,004 and 11,161,416 common shares issued and outstanding, respectively		11,747			11,161
Capital in excess of par value		321,559,189			304,874,957
Total distributable earnings (deficit)		21,030,809			(700,348	)
Total net assets		342,601,745			304,185,770
Total liabilities and net assets	$	811,713,311		$	592,152,378
NET ASSET VALUE PER SHARE	$	29.17		$	27.25

See accompanying notes to consolidated financial statements.

Saratoga Investment Corp.

Consolidated Statements of Operations

(unaudited)

	For the three months ended						For the nine months ended
	November 30, 2021			November 30, 2020			November 30, 2021			November 30, 2020
INVESTMENT INCOME
Interest from investments
Interest income:
Non-control/Non-affiliate investments	$	11,152,851		$	10,422,586		$	33,687,612		$	30,585,868
Affiliate investments		1,055,947			418,418			2,332,967			1,204,840
Control investments		1,702,096			1,654,359			5,616,182			4,037,915
Payment-in-kind interest income:
Non-control/Non-affiliate investments		115,724			214,422			1,002,819			1,125,306
Affiliate investments		-			49,333			-			143,574
Control investments		110,737			44,896			298,383			117,449
Total interest from investments		14,137,355			12,804,014			42,937,963			37,214,952
Interest from cash and cash equivalents		968			770			2,561			14,176
Management fee income		815,739			623,817			2,448,593			1,883,825
Dividend Income*		537,621			12,799			1,595,119			12,799
Structuring and advisory fee income		582,500			545,354			2,922,625			1,798,660
Other income*		427,921			296,003			1,852,916			511,063
Total investment income		16,502,104			14,282,757			51,759,777			41,435,475

OPERATING EXPENSES
Interest and debt financing expenses		4,842,900			3,559,870			14,367,996			9,452,193
Base management fees		2,923,676			2,324,564			8,684,681			6,694,144
Incentive management fees expense (benefit)		2,417,628			2,295,000			9,698,327			1,966,367
Professional fees		(104,438	)		502,979			863,376			1,257,420
Administrator expenses		750,000			693,750			2,156,250			1,852,083
Insurance		85,399			67,010			258,035			202,463
Directors fees and expenses		73,096			60,000			265,596			195,000
General & administrative		357,727			278,734			1,301,603			963,372
Income tax expense (benefit)		(40,519	)		29,748			18,082			28,304
Total operating expenses		11,305,469			9,811,655			37,613,946			22,611,346
NET INVESTMENT INCOME		5,196,635			4,471,102			14,145,831			18,824,129

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) from investments:
Non-control/Non-affiliate investments		2,588,468			1,798			6,140,073			22,207
Affiliate investments		7,328,457			-			7,328,457			-
Control investments		-			-			(139,867	)		-
Net realized gain (loss) from investments		9,916,925			1,798			13,328,663			22,207
Income tax (provision) benefit from realized gain on investments		(2,447,173	)		(3,895,354	)		(2,896,056	)		(3,895,354	)
Net change in unrealized appreciation (depreciation) on investments:
Non-control/Non-affiliate investments		3,887,216			4,348,888			11,593,037			(9,472,477	)
Affiliate investments		(7,412,673	)		385,414			(1,668,686	)		(1,421,606	)
Control investments		(2,517,159	)		1,264,528			4,222,150			1,522,945
Net change in unrealized appreciation (depreciation) on investments		(6,042,616	)		5,998,830			14,146,501			(9,371,138	)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments		2,480,465			(210,057	)		921,610			(58,838	)
Net realized and unrealized gain (loss) on investments		3,907,601			1,895,217			25,500,718			(13,303,123	)
Realized losses on extinguishment of debt		(764,123	)		-			(2,316,263	)		-
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	8,340,113		$	6,366,319		$	37,330,286		$	5,521,006

WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE	$	0.73		$	0.57		$	3.30		$	0.49
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED		11,450,861			11,169,817			11,312,991			11,198,287

*	Certain prior period amounts have been reclassified to conform to current period presentation.

See accompanying notes to consolidated financial statements.

Saratoga Investment Corp.

Consolidated Statements of Changes in Net Assets

(unaudited)

	For the nine months ended
	November 30, 2021			November 30, 2020
INCREASE (DECREASE) FROM OPERATIONS:
Net investment income	$	14,145,831		$	18,824,129
Net realized gain from investments		13,328,663			22,207
Realized losses on extinguishment of debt		(2,316,263	)		-
Income tax (provision) benefit from realized gain on investments		(2,896,056	)		(3,895,354	)
Net change in unrealized appreciation (depreciation) on investments		14,146,501			(9,371,138	)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments		921,610			(58,838	)
Net increase (decrease) in net assets resulting from operations		37,330,286			5,521,006

DECREASE FROM SHAREHOLDER DISTRIBUTIONS:
Total distributions to shareholders		(15,599,129	)		(9,068,484	)
Net decrease in net assets from shareholder distributions		(15,599,129	)		(9,068,484	)

CAPITAL SHARE TRANSACTIONS:
Proceeds from issuance of common stock		15,320,818			-
Stock dividend distribution		2,760,278			1,580,919
Repurchases of common stock		(1,252,143	)		(2,464,661	)
Repurchase fees		(992	)		(2,743	)
Offering costs		(143,143	)		-
Net increase (decrease) in net assets from capital share transactions		16,684,818			(886,485	)
Total increase (decrease) in net assets		38,415,975			(4,433,963	)
Net assets at beginning of period		304,185,770			304,286,853
Net assets at end of period	$	342,601,745		$	299,852,890

See accompanying notes to consolidated financial statements.

Saratoga Investment Corp.

Consolidated Statements of Cash Flows

(unaudited)

	For the nine months ended
	November 30, 2021			November 30, 2020
Operating activities
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	37,330,286		$	5,521,006
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		(1,120,081	)		1,402,751
Net accretion of discount on investments		(1,368,430	)		(964,524	)
Amortization of deferred debt financing costs		1,544,478			992,592
Realized losses on extinguishment of debt		2,316,263			-
Income tax expense (benefit)		18,082			28,304
Net realized (gain) loss from investments		(13,328,663	)		(22,207	)
Net change in unrealized (appreciation) depreciation on investments		(14,146,501	)		9,371,138
Net change in provision for deferred taxes on unrealized appreciation (depreciation) on investments		(921,610	)		58,838
Proceeds from sales and repayments of investments		216,236,729			50,928,681
Purchases of investments		(293,753,351	)		(122,027,366	)
(Increase) decrease in operating assets:
Interest receivable		(343,168	)		618,279
Due from affiliate		2,719,000			-
Management and incentive fee receivable		(330,071	)		(12,049	)
Other assets		(54,299	)		(59,043	)
Increase (decrease) in operating liabilities:
Base management and incentive fees payable		5,524,592			(11,024,296	)
Accounts payable and accrued expenses		210,809			(198,572	)
Current tax payable		2,833,988			-
Interest and debt fees payable		450,550			(1,302,104	)
Directors fees payable		(70,500	)		(17,000	)
Excise tax payable		(691,672	)		-
Due to manager		10,887			(265,499	)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		(56,932,682	)		(66,971,071	)

Financing activities
Borrowings on debt		135,000,000			26,000,000
Paydowns on debt		(73,500,000	)		-
Issuance of notes		175,000,000			48,125,000
Repayments of notes		(60,000,000	)		-
Payments of deferred debt financing costs		(7,768,038	)		(2,752,425	)
Premium on debt issuance, 4.375% notes 2026		1,250,000			-
Proceeds from issuance of common stock		15,320,818			-
Payments of cash dividends		(12,838,851	)		(7,487,565	)
Repurchases of common stock		(1,252,143	)		(2,464,661	)
Repurchases fees		(992	)		(2,743	)
Payments of offering costs		(124,714	)		-
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		171,086,080			61,417,606
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS		114,153,398			(5,553,465	)
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD		29,915,074			39,450,352
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD	$	144,068,472		$	33,896,887

Supplemental information:
Interest paid during the period	$	12,372,967		$	9,761,705
Cash paid for taxes		727,469			4,103,200
Supplemental non-cash information:
Payment-in-kind interest income and other adjustments to cost		1,120,081			(1,402,751	)
Net accretion of discount on investments		1,368,430			964,524
Amortization of deferred debt financing costs		1,544,478			992,592
Stock dividend distribution		2,760,278			1,580,919

See accompanying notes to consolidated financial statements.

Saratoga Investment Corp.

Consolidated Schedule of Investments

November 30, 2021

(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 - 159.6% (b)
Targus Holdings, Inc. (h)	Consumer Products	Common Stock	12/31/2009		210,456	$	1,589,630	$	531,247		0.2	%
		Total Consumer Products					1,589,630		531,247		0.2	%
Schoox, Inc. (h), (i)	Corporate Education Software	Series 1 Membership Interest	12/8/2020		226,782		475,698		3,446,921		1.0	%
		Total Corporate Education Software					475,698		3,446,921		1.0	%
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		6,499,951		6,461,264		1.9	%
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		2,131,736		2,054,905		0.6	%
		Total Dental Practice Management					8,631,687		8,516,169		2.5	%
PDDS Buyer, LLC (d)	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		13,915,232		14,140,000		4.1	%
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		6,950,156		7,070,000		2.1	%
PDDS Buyer, LLC (h)	Dental Practice Management Software	Series A-1 Preferred Shares	8/10/2020		1,755,831		2,000,000		5,190,688		1.5	%
		Total Dental Practice Management Software					22,865,388		26,400,688		7.7	%
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		18,478,932		17,380,750		5.1	%
C2 Education Systems, Inc. (h)	Education Services	Series A-1 Preferred Stock	5/18/2021		3,127		499,904		515,246		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		15,869,962		15,891,200		4.6	%
Zollege PBC (j)	Education Services	Delayed Draw Term Loan (3M USD LIBOR+5.50%), 6.50% Cash, 5/11/2026	5/11/2021	$	-		-		-		0.0	%
Zollege PBC (h)	Education Services	Class A Units	5/11/2021		250,000		250,000		226,054		0.1	%
		Total Education Services					35,098,798		34,013,250		10.0	%
Destiny Solutions Inc. (h), (i)	Education Software	Limited Partner Interests	5/16/2018		3,065		3,969,291		6,622,375		1.9	%
Identity Automation Systems (d)	Education Software	First Lien Term Loan (3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024	8/25/2014	$	17,050,625		17,050,625		17,050,625		5.0	%
Identity Automation Systems (h)	Education Software	Common Stock Class A-2 Units	8/25/2014		232,616		232,616		770,329		0.2	%
Identity Automation Systems (h)	Education Software	Common Stock Class A-1 Units	3/6/2020		43,715		171,571		196,926		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		4,949,763		5,000,000		1.5	%
GoReact	Education Software	Delayed Draw Term Loan (3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025	1/17/2020	$	2,000,000		2,000,000		2,000,000		0.6	%
		Total Education Software					28,373,866		31,640,255		9.3	%
Top Gun Pressure Washing, LLC	Facilities Maintenance	First Lien Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 12/31/2025	8/12/2019	$	5,000,000		4,966,580		5,019,500		1.5	%
Top Gun Pressure Washing, LLC (j)	Facilities Maintenance	Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 12/31/2025	8/12/2019	$	5,500,000		5,453,313		5,521,450		1.7	%
TG Pressure Washing Holdings, LLC (f), (h)	Facilities Maintenance	Preferred Equity	8/12/2019		488,148		488,148		454,493		0.1	%
		Total Facilities Maintenance					10,908,041		10,995,443		3.3	%
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		2,981,626		3,031,800		0.9	%
Davisware, LLC	Field Service Management	Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024	9/6/2019	$	977,790		975,139		988,155		0.3	%
		Total Field Service Management					3,956,765		4,019,955		1.2	%
GDS Software Holdings, LLC (h)	Financial Services	Common Stock Class A Units	8/23/2018		250,000		250,000		510,747		0.1	%
		Total Financial Services					250,000		510,747		0.1	%
Ohio Medical, LLC (h)	Healthcare Products Manufacturing	Common Stock	1/15/2016		5,000		380,353		644,612		0.2	%
		Total Healthcare Products Manufacturing					380,353		644,612		0.2	%
Axiom Parent Holdings, LLC (h)	Healthcare Services	Common Stock Class A Units	6/19/2018		400,000		400,000		948,130		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		9,967,791		10,059,000		2.9	%
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		5,972,792		6,035,400		1.8	%
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		24,887,992		25,000,000		7.3	%
		Total Healthcare Services					41,228,575		42,042,530		12.3	%

Company(1)	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		2,241		2,310,929		2,966,929		0.9	%
HemaTerra Holding Company, LLC (d)	Healthcare Software	First Lien Term Loan (3M USD LIBOR+6.75%), 8.25% Cash, 1/31/2026	4/15/2019	$	36,000,000		35,687,524		35,949,600		10.5	%
HemaTerra Holding Company, LLC (d), (j)	Healthcare Software	Delayed Draw Term Loan (3M USD LIBOR+6.75%), 8.25% Cash, 1/31/2026	4/15/2019	$	12,000,000		11,926,185		11,983,200		3.5	%
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		34,806,640		35,005,575		10.2	%
Procurement Partners, LLC (j)	Healthcare Software	Delayed Draw Term Loan (3M USD LIBOR+5.50%), 6.50% Cash, 11/12/2025	11/12/2020	$	-		-		-		0.0	%
Procurement Partners Holdings LLC (h)	Healthcare Software	Class A Units	11/12/2020		550,986		550,986		611,676		0.2	%
		Total Healthcare Software					85,282,264		86,516,980		25.3	%
Roscoe Medical, Inc. (h)	Healthcare Supply	Common Stock	3/26/2014		5,081		508,077		88,322		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		1.5	%
		Total Healthcare Supply					5,649,490		5,229,735		1.5	%
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		3,109,884		3,135,890		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		188,508		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	$	15,838,513		15,838,513		10,448,667		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		5,948,723		5,940,000		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					25,053,946		19,713,065		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		27,748,761		27,935,600		8.2	%
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	$	-		-		-		0.0	%
		Total HVAC Services and Sales					27,748,761		27,935,600		8.2	%
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		8,921,624		8,920,800		2.6	%
AgencyBloc, LLC (h)	Insurance Software	Class A Units	10/1/2021		2,000,000		2,000,000		2,000,000		0.6	%
		Total Insurance Software					10,921,624		10,920,800		3.2	%
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	$	5,386,146		5,386,146		5,386,146		1.6	%
Vector Controls Holding Co., LLC (h)	Industrial Products	Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027	5/31/2015		343		-		3,004,804		0.9	%
		Total Industrial Products					5,386,146		8,390,950		2.5	%
LogicMonitor, Inc. (d)	IT Services	First Lien Term Loan (3M USD LIBOR+5.00), 6.00% Cash, 5/17/2023	3/20/2020	$	33,000,000		32,846,165		33,000,000		9.6	%
		Total IT Services					32,846,165		33,000,000		9.6	%
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		12,132,519		12,404,960		3.6	%
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		4,969,883		5,084,000		1.5	%
		Total Marketing Services					17,102,402		17,488,960		5.1	%
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		14,854,465		14,850,000		4.3	%
Chronus LLC (h)	Mentoring Software	Series A Preferred Stock	8/26/2021		3,000		3,000,000		3,000,000		0.9	%
		Total Mentoring Software					17,854,465		17,850,000		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	$	8,230,092		8,184,696		8,280,296		2.4	%
		Total Non-profit Services					8,184,696		8,280,296		2.4	%
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		3,289,440		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		448,028		0.1	%
		Total Office Supplies					3,700,000		3,737,468		1.1	%

Company(1)	Industry	Investment Interest Rate/ Maturity	Original Acquisition Date	Principal/ Number of Shares		Cost		Fair Value (c)		% of Net Assets
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	$	17,500,000		17,484,846		17,515,750		5.0	%
Apex Holdings Software Technologies, LLC	Payroll Services	Delayed Draw Term Loan (3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024	10/1/2018	$	-		-		-		0.0	%
		Total Payroll Services					17,484,846		17,515,750		5.0	%
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		13,889,357		13,995,800		4.1	%
Buildout, Inc.	Real Estate Services	Delayed Draw Term Loan (3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025	2/12/2021	$	3,000,000		2,973,924		2,999,100		0.8	%
Buildout, Inc. (h), (i)	Real Estate Services	Limited Partner Interests	7/9/2020		1,071		1,071,301		1,293,084		0.4	%
		Total Real Estate Services					17,934,582		18,287,984		5.3	%
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		11,880,712		11,880,000		3.5	%
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		999,983		0.3	%
TMAC Acquisition Co., LLC	Restaurant	Unsecured Term Loan 8.00% PIK, 9/01/2023	3/1/2018	$	2,758,622		2,758,622		2,737,602		0.8	%
		Total Restaurant					15,639,334		15,617,585		4.6	%
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	$	33,915,000		33,593,475		33,575,850		9.7	%
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	$	-		-		-		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	$	-		-		-		0.0	%
Pepper Palace, Inc. (h)	Specialty Food Retailer	Membership Interest	6/30/2021		1,000,000		1,000,000		1,000,000		0.2	%
		Total Specialty Food Retailer					34,593,475		34,575,850		9.9	%
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		25,834,438		25,589,200		7.4	%
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		984,200		0.3	%
		Total Sports Management					26,834,438		26,573,400		7.7	%
Avionte Holdings, LLC (h)	Staffing Services	Class A Units	1/8/2014		100,000		100,000		1,892,978		0.6	%
		Total Staffing Services					100,000		1,892,978		0.6	%
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		19,830,902		19,826,000		5.8	%
		Total Talen Acquisition Software					19,830,902		19,826,000		5.8	%
National Waste Partners (d)	Waste Services	Second Lien Term Loan 10.00% Cash, 2/13/2022	2/13/2017	$	9,000,000		8,997,562		9,000,000		2.6	%
		Total Waste Services					8,997,562		9,000,000		2.6	%
Sub Total Non-control/Non-affiliate investments							536,539,603		546,750,922		159.6	%
Affiliate investments - 11.8% (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	$	24,000,000		23,769,915		23,935,200		7.0	%
Artemis Wax Corp. (f), (h)	Consumer Services	Series B-1 Preferred Stock	5/20/2021		934,463		1,500,000		1,704,065		0.5	%
Artemis Wax Corp. (f), (h)	Consumer Services	Series C Preferred Stock	5/20/2021		5,359		5,358,719		5,358,715		1.6	%
		Total Consumer Services					30,628,634		30,997,980		9.1	%

Company(1)	Industry	Investment Interest Rate/ Maturity	Original Acquisition Date	Principal/ Number of Shares		Cost		Fair Value (c)		% of Net Assets
Axero Holdings, LLC(f)	Employee Collaboration Software	First Lien Term Loan (3 USD LIBOR+10.00%), 11.00% Cash, 6/30/2026	6/30/2021	$	5,500,000		5,446,999		5,445,000		1.6	%
Axero Holdings, LLC (f), (j)	Employee Collaboration Software	Delayed Draw Term Loan (3 USD LIBOR+10.00%), 11.00% Cash, 6/30/2026	6/30/2021	$	-		-		-		0.0	%
Axero Holdings, LLC (f), (h)	Employee Collaboration Software	Series A Preferred Units	6/30/2021		2,000,000		2,000,000		2,000,000		0.5	%
Axero Holdings, LLC (f), (h)	Employee Collaboration Software	Series B Preferred Units	6/30/2021		2,000,000		2,000,000		2,000,000		0.6	%
		Total Employee Collaboration Software					9,446,999		9,445,000		2.7	%
Sub Total Affiliate investments							40,075,633		40,442,980		11.8	%
Control investments - 21.6% (b)
Netreo Holdings, LLC (g)	IT Services	First Lien Term Loan (3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK, 12/31/2025	7/3/2018	$	5,420,019		5,393,553		5,420,019		1.5	%
Netreo Holdings, LLC (d), (g), (j)	IT Services	Delayed Draw Term Loan (3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK, 12/31/2025	5/26/2020	$	10,409,659		10,318,388		10,409,659		3.0	%
Netreo Holdings, LLC (g), (h)	IT Services	Common Stock Class A Unit	7/3/2018		4,600,677		8,344,500		18,104,384		5.3	%
		Total IT Services					24,056,441		33,934,062		9.8	%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g)	Structured Finance Securities	Other/Structured Finance Securities 11.34%, 4/20/2033	1/22/2008	$	111,000,000		33,300,799		31,290,048		9.1	%
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		2.7	%
		Total Structured Finance Securities					42,675,799		40,665,048		11.8	%
Sub Total Control investments							66,732,240		74,599,110		21.6	%
TOTAL INVESTMENTS - 193.0% (b)						$	643,347,476	$	661,793,012		193.0	%

	Number of Shares		Cost		Fair Value		% of Net Assets
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 42.1% (b)
U.S. Bank Money Market (l)		144,068,471	$	144,068,471	$	144,068,471		42.1	%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts		144,068,471	$	144,068,471	$	144,068,471		42.1	%

(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 November 30, 2021, non-qualifying assets represent 6.6% 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 $342,601,745 as of November 30, 2021.

(c)

Because there is no readily available market value for these investments, the fair values of these investments were determined using significant unobservable inputs and approved in good faith by our board of directors. These investments have been included as Level 3 in the Fair Value Hierarchy (see Note 3 to the consolidated financial statements).

(d)

These securities are either fully or partially pledged as collateral under a senior secured revolving credit facility (see Note 7 to the consolidated financial statements).

(e)

This investment does not have a stated interest rate that is payable thereon. As a result, the 11.34% 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. GreyHeller, LLC is no longer an affiliate as of November 30, 2021. Transactions during the nine months ended November 30, 2021 in which the issuer was an affiliate are as follows:

Company	Purchases		Sales			Total Interest from Investments		Management Fee Income		Net Realized Gain (Loss) from Investments		Net Change in Unrealized Appreciation (Depreciation)
Artemis Wax Corp.	$	30,260,000	$	-		$	1,098,885	$	-	$	-	$	369,346
Axero Holdings, LLC		9,445,000		-			260,804		-		-		(1,999	)
GreyHeller, LLC		8,910,000		(26,428,457	)		973,278				7,328,457		-
Total	$	48,615,000	$	(26,428,457	)	$	2,332,967	$	-	$	7,328,457	$	367,347

(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 nine months ended November 30, 2021 in which the issuer was both an affiliate and a portfolio company that we control are as follows:

Company	Purchases		Sales			Total Interest from Investments		Management Fee Income		Net Realized Gain (Loss) from Investments			Net Change in Unrealized Appreciation (Depreciation)
Netreo Holdings, LLC	$	14,104,500	$	-		$	1,279,692	$	-	$	-		$	4,290,015
Saratoga Investment Corp. CLO 2013-1, Ltd.		-		-			3,516,264		2,448,593		-			386,160
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		-			299,392		-		-			-
Total	$	31,979,500	$	(26,375,000	)	$	5,914,565	$	2,448,593	$	(139,867	)	$	4,222,150

(h)

Non-income producing at November 30, 2021.

(i)

Includes securities issued by an affiliate of the company.

(j)

All or a portion of this investment has an unfunded commitment as of November 30, 2021. (See Note 8 to the consolidated financial statements).

(k)

As of November 30, 2021, there were no investments on non-accrual status. (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, 2021.

BSBY - Bloomberg Short-Term Bank Yield

LIBOR - London Interbank Offered Rate

3M USD BSBY - The 3 month USD BSBY rate as of November 30, 2021 was 0.16%.

1M USD LIBOR - The 1 month USD LIBOR rate as of November 30, 2021 was 0.09%.

3M USD LIBOR - The 3 month USD LIBOR rate as of November 30, 2021 was 0.17%.

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

See accompanying notes to consolidated financial statements.

Saratoga Investment Corp.

Consolidated Schedule of Investments

February 28, 2021

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 - 154.5% (b)
Targus Holdings, Inc. (d), (h)	Consumer Products	Common Stock	12/31/2009		210,456	$	1,589,630	$	475,116		0.2	%
		Total Consumer Products					1,589,630		475,116		0.2	%
My Alarm Center, LLC (k)	Consumer Services	Preferred Equity Class A Units 8.00% PIK	7/14/2017		2,227		2,357,879		-		0.0	%
My Alarm Center, LLC (h)	Consumer Services	Preferred Equity Class B Units	7/14/2017		1,797		1,796,880		-		0.0	%
My Alarm Center, LLC (h)	Consumer Services	Preferred Equity Class Z Units	9/12/2018		676		712,343		181,240		0.1	%
My Alarm Center, LLC (h)	Consumer Services	Common Stock	7/14/2017		96,224		-		-		0.0	%
		Total Consumer Services					4,867,102		181,240		0.1	%
Schoox, Inc. (h), (i)	Corporate Education Software	Series 1 Membership Interest	12/8/2020		226,782		1,050,000		1,050,000		0.3	%
		Total Corporate Education Software					1,050,000		1,050,000		0.3	%
Passageways, Inc.	Corporate Governance	First Lien Term Loan (3M USD LIBOR+7.00%), 8.75% Cash, 12/31/2025	7/5/2018	$	5,000,000		4,972,250		5,050,000		1.7	%
Passageways, Inc. (j)	Corporate Governance	Delayed Draw Term Loan (3M USD LIBOR+7.00%), 8.75% Cash, 12/31/2025	1/3/2020	$	5,000,000		4,980,871		5,050,000		1.7	%
Passageways, Inc. (h)	Corporate Governance	Series A Preferred Stock	7/5/2018		2,027,205		1,000,000		3,164,579		1.0	%
		Total Corporate Governance					10,953,121		13,264,579		4.4	%
New England Dental Partners	Dental Practice Management	First Lien Term Loan (3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025	11/25/2020	$	6,555,000		6,491,331		6,489,450		2.1	%
New England Dental Partners (j)	Dental Practice Management	Delayed Draw Term Loan (3M USD LIBOR+8.00%), 8.50% Cash, 11/25/2025	11/25/2020	$	650,000		644,419		643,500		0.2	%
		Total Dental Practice Management					7,135,750		7,132,950		2.3	%
PDDS Buyer, LLC	Dental Practice Management Software	First Lien Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024	7/15/2019	$	14,000,000		13,895,777		14,278,600		4.7	%
PDDS Buyer, LLC	Dental Practice Management Software	Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 7/15/2024	7/15/2019	$	7,000,000		6,938,964		7,139,300		2.3	%
PDDS Buyer, LLC (h)	Dental Practice Management Software	Series A-1 Preferred Shares	8/10/2020		1,755,831		2,000,000		2,240,946		0.7	%
		Total Dental Practice Management Software					22,834,741		23,658,846		7.7	%
C2 Educational Systems (d)	Education Services	First Lien Term Loan (3M USD LIBOR+8.50%), 10.00% Cash, 5/31/2023	5/31/2017	$	16,000,000		15,998,379		13,499,200		4.4	%
Texas Teachers of Tomorrow, LLC (h), (i)	Education Services	Common Stock	12/2/2015		750		750,000		1,011,596		0.3	%
Texas Teachers of Tomorrow, LLC (d)	Education Services	First Lien Term Loan (3M USD LIBOR+7.25%), 9.75% Cash, 6/28/2024	6/28/2019	$	25,947,024		25,748,711		25,874,372		8.5	%
		Total Education Services					42,497,090		40,385,168		13.2	%
Destiny Solutions Inc. (d)	Education Software	First Lien Term Loan (3M USD LIBOR+7.50%), 9.50% Cash, 10/24/2024	5/16/2018	$	43,500,000		43,204,446		43,630,500		14.3	%
Destiny Solutions Inc. (h), (i)	Education Software	Limited Partner Interests	5/16/2018		2,342		2,468,464		3,069,267		1.0	%
Identity Automation Systems (d)	Education Software	First Lien Term Loan (3M USD LIBOR+9.24%), 10.99% Cash, 5/8/2024	8/25/2014	$	17,247,500		17,247,500		17,357,884		5.7	%
Identity Automation Systems (h)	Education Software	Common Stock Class A-2 Units	8/25/2014		232,616		232,616		725,726		0.2	%
Identity Automation Systems (h)	Education Software	Common Stock Class A-1 Units	3/6/2020		43,715		171,571		185,553		0.1	%
GoReact	Education Software	First Lien Term Loan (3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025	1/17/2020	$	5,000,000		4,940,297		5,100,000		1.7	%
GoReact (j)	Education Software	Delayed Draw Term Loan (3M USD LIBOR+7.50%), 9.50% Cash, 1/17/2025	1/17/2020	$	-		-		-		0.0	%
Kev Software Inc. (a)	Education Software	First Lien Term Loan (1M USD LIBOR+8.63%), 9.63% Cash, 9/13/2023	9/13/2018	$	17,835,914		17,745,629		18,021,407		5.9	%
		Total Education Software					86,010,523		88,090,337		28.9	%
Davisware, LLC	Field Service Management	First Lien Term Loan (3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024	9/6/2019	$	3,000,000		2,977,590		3,030,000		1.0	%
Davisware, LLC	Field Service Management	Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.00% Cash, 7/31/2024	9/6/2019	$	977,790		974,399		987,568		0.3	%
		Total Field Service Management					3,951,989		4,017,568		1.3	%
GDS Software Holdings, LLC (h)	Financial Services	Common Stock Class A Units	8/23/2018		250,000		250,000		418,531		0.1	%
		Total Financial Services					250,000		418,531		0.1	%
Ohio Medical, LLC (h)	Healthcare Products Manufacturing	Common Stock	1/15/2016		5,000		380,353		566,592		0.2	%
		Total Healthcare Products Manufacturing					380,353		566,592		0.2	%

Company(1)	Industry	Investment Interest Rate/ Maturity	Original Acquisition Date	Principal/ Number of Shares		Cost		Fair Value (c)		% of Net Assets
Axiom Parent Holdings, LLC (h)	Healthcare Services	Common Stock Class A Units	6/19/2018		400,000		400,000		1,415,301		0.5	%
Axiom Purchaser, Inc. (d)	Healthcare Services	First Lien Term Loan (3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023	6/19/2018	$	10,000,000		9,955,177		10,059,000		3.3	%
Axiom Purchaser, Inc. (d)	Healthcare Services	Delayed Draw Term Loan (3M USD LIBOR+6.00%), 7.75% Cash, 6/19/2023	6/19/2018	$	6,000,000		5,961,748		6,035,400		2.0	%
ComForCare Health Care	Healthcare Services	First Lien Term Loan (3M USD LIBOR+7.75%), 8.75% Cash, 1/31/2025	1/31/2017	$	25,000,000		24,871,639		24,900,000		8.2	%
		Total Healthcare Services					41,188,564		42,409,701		14.0	%
TRC HemaTerra, LLC (h)	Healthcare Software	Class D Membership Interests	4/15/2019		2,000,000		2,000,000		2,572,002		0.8	%
HemaTerra Holding Company, LLC	Healthcare Software	First Lien Term Loan (3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024	4/15/2019	$	6,000,000		5,956,593		6,060,000		2.0	%
HemaTerra Holding Company, LLC (d), (j)	Healthcare Software	Delayed Draw Term Loan (3M USD LIBOR+6.75%), 9.25% Cash, 4/15/2024	4/15/2019	$	12,000,000		11,914,035		12,120,000		4.0	%
Procurement Partners, LLC	Healthcare Software	First Lien Term Loan (3M USD LIBOR+6.50%), 7.50% Cash, 11/12/2025	11/12/2020	$	8,000,000		7,924,230		7,920,000		2.6	%
Procurement Partners, LLC (j)	Healthcare Software	Delayed Draw Term Loan (3M USD LIBOR+6.50%), 7.50% Cash, 11/12/2025	11/12/2020	$	-		-		-		0.0	%
Procurement Partners Holdings LLC (h)	Healthcare Software	Class A Units	11/12/2020		300,000		300,000		300,000		0.1	%
		Total Healthcare Software					28,094,858		28,972,002		9.5	%
Roscoe Medical, Inc. (d), (h)	Healthcare Supply	Common Stock	3/26/2014		5,081		508,077		280,346		0.1	%
Roscoe Medical, Inc.	Healthcare Supply	Second Lien Term Loan 11.25% Cash, 6/28/2021	3/26/2014	$	5,141,413		5,141,413		5,141,413		1.7	%
		Total Healthcare Supply					5,649,490		5,421,759		1.8	%
Book4Time, Inc. (a)	Hospitality/Hotel	First Lien Term Loan (3M USD LIBOR+8.50%), 10.25%, 12/22/2025	12/22/2020	$	3,136,517		3,105,788		3,105,152		1.0	%
Book4Time, Inc. (a), (j)	Hospitality/Hotel	Delayed Draw Term Loan (3M USD LIBOR+8.50%), 10.25%, 12/22/2025	12/22/2020	$	-		-		-		0.0	%
Book4Time, Inc. (a), (i)	Hospitality/Hotel	Class A Preferred Shares	12/22/2020		200,000		156,826		156,826		0.1	%
Knowland Group, LLC	Hospitality/Hotel	Second Lien Term Loan (3M USD LIBOR+8.00%), 10.00% Cash, 5/9/2024	11/9/2018	$	15,767,918		15,767,918		10,788,409		3.5	%
Sceptre Hospitality Resources, LLC	Hospitality/Hotel	First Lien Term Loan (1M USD LIBOR+9.00%), 10.00% Cash, 4/27/2025	4/27/2020	$	3,000,000		2,973,387		3,030,000		1.0	%
		Total Hospitality/Hotel					22,003,919		17,080,387		5.6	%
Granite Comfort, LP	HVAC Services and Sales	First Lien Term Loan (1M USD LIBOR+9.00%), 10.00% Cash, 11/16/2025	11/16/2020	$	7,000,000		6,932,689		6,950,300		2.3	%
Granite Comfort, LP	HVAC Services and Sales	Delayed Draw Term Loan (1M USD LIBOR+9.00%), 10.00% Cash, 11/16/2025	11/16/2020	$	8,000,000		7,922,181		7,943,200		2.6	%
		Total HVAC Services and Sales					14,854,870		14,893,500		4.9	%
Vector Controls Holding Co., LLC (d)	Industrial Products	First Lien Term Loan 11.50% (9.75% Cash/1.75% PIK), 3/6/2022	3/6/2013	$	7,021,046		7,021,046		7,021,046		2.3	%
Vector Controls Holding Co., LLC (d), (h)	Industrial Products	Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027	5/31/2015		343		-		2,025,598		0.7	%
		Total Industrial Products					7,021,046		9,046,644		3.0	%
CLEO Communications Holding, LLC (d)	IT Services	First Lien Term Loan (3M USD LIBOR+8.00%), 9.00% Cash/2.00% PIK, 3/31/2022	3/31/2017	$	14,073,964		14,064,807		14,176,704		4.7	%
CLEO Communications Holding, LLC (d), (j)	IT Services	Delayed Draw Term Loan (3M USD LIBOR+8.00%), 9.00% Cash/2.00% PIK, 3/31/2022	3/31/2017	$	20,451,756		20,388,504		20,601,054		6.8	%
LogicMonitor, Inc.	IT Services	First Lien Term Loan (3M USD LIBOR+5.00), 6.00% Cash, 5/17/2023	3/20/2020	$	23,000,000		22,865,749		23,089,700		7.6	%
		Total IT Services					57,319,060		57,867,458		19.1	%
inMotionNow, Inc.	Marketing Services	First Lien Term Loan (3M USD LIBOR+7.50), 10.00% Cash, 5/15/2024	5/15/2019	$	12,200,000		12,116,232		12,322,000		4.1	%
inMotionNow, Inc.	Marketing Services	Delayed Draw Term Loan (3M USD LIBOR+7.50) 10.00% Cash, 5/15/2024	5/15/2019	$	5,000,000		4,960,820		5,050,000		1.7	%
		Total Marketing Services					17,077,052		17,372,000		5.8	%

Company(1)	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		5,470,787		5,554,450		1.8	%
		Total Non-profit Services					5,470,787		5,554,450		1.8	%
Emily Street Enterprises, L.L.C.	Office Supplies	Senior Secured Note (3M USD LIBOR+8.50%), 10.00% Cash, 12/31/2023	12/28/2012	$	3,300,000		3,300,000		3,287,460		1.1	%
Emily Street Enterprises, L.L.C. (h)	Office Supplies	Warrant Membership Interests Expires 12/28/2022	12/28/2012		49,318		400,000		322,853		0.1	%
		Total Office Supplies					3,700,000		3,610,313		1.2	%
Apex Holdings Software Technologies, LLC	Payroll Services	First Lien Term Loan (3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024	9/21/2016	$	18,000,000		17,981,413		17,368,200		5.7	%
Apex Holdings Software Technologies, LLC	Payroll Services	Delayed Draw Term Loan (3M USD LIBOR+8.00%), 9.00% Cash, 9/21/2024	10/1/2018	$	1,000,000		994,557		964,900		0.3	%
		Total Payroll Services					18,975,970		18,333,100		6.0	%
Village Realty Holdings LLC	Property Management	First Lien Term Loan (3M USD LIBOR+6.50%), 8.75% Cash, 10/8/2024	10/8/2019	$	7,250,000		7,189,591		7,395,000		2.4	%
Village Realty Holdings LLC (j)	Property Management	Delayed Draw Term Loan (3M USD LIBOR+6.50%), 8.75% Cash, 10/8/2024	10/8/2019	$	4,876,322		4,838,617		4,973,850		1.6	%
V Rental Holdings LLC (h)	Property Management	Class A-1 Membership Units	10/8/2019		122,578		365,914		2,208,681		0.7	%
		Total Property Management					12,394,122		14,577,531		4.7	%
Buildout, Inc.	Real Estate Services	First Lien Term Loan (3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025	7/9/2020	$	14,000,000		13,873,317		13,952,400		4.6	%
Buildout, Inc.	Real Estate Services	Delayed Draw Term Loan (3M USD LIBOR+7.75%), 9.25% Cash, 7/9/2025	2/12/2021	$	3,000,000		2,970,361		2,989,800		1.0	%
Buildout, Inc. (h), (i)	Real Estate Services	Limited Partner Interests	7/9/2020		1,071		1,071,301		1,090,002		0.4	%
		Total Real Estate Services					17,914,979		18,032,202		6.0	%
TMAC Acquisition Co., LLC (k)	Restaurant	Unsecured Term Loan 8.00% PIK, 9/01/2023	3/1/2018	$	2,261,017		2,261,017		2,140,911		0.7	%
		Total Restaurant					2,261,017		2,140,911		0.7	%
ArbiterSports, LLC (d)	Sports Management	First Lien Term Loan (3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025	2/21/2020	$	26,000,000		25,800,743		24,525,800		8.1	%
ArbiterSports, LLC (d)	Sports Management	Delayed Draw Term Loan (3M USD LIBOR+6.50%), 8.25% Cash, 2/21/2025	2/21/2020	$	1,000,000		1,000,000		943,300		0.3	%
		Total Sports Management					26,800,743		25,469,100		8.4	%
Avionte Holdings, LLC (h)	Staffing Services	Class A Units	1/8/2014		100,000		100,000		924,509		0.3	%
		Total Staffing Services					100,000		924,509		0.3	%
National Waste Partners (d)	Waste Services	Second Lien Term Loan 10.00% Cash, 2/13/2022	2/13/2017	$	9,000,000		8,981,436		9,000,000		3.0	%
		Total Waste Services					8,981,436		9,000,000		3.0	%
Sub Total Non-control/Non-affiliate investments							471,328,212		469,946,494		154.5	%

Company(1)	Industry	Investment Interest Rate/ Maturity	Original Acquisition Date	Principal/ Number of Shares		Cost		Fair Value (c)		% of Net Assets
Affiliate investments - 6.4% (b)
GreyHeller LLC (f)	Cyber Security	First Lien Term Loan (3M USD LIBOR+11.00%), 12.00% Cash, 12/31/2025	11/17/2016	$	7,000,000		6,988,549		7,000,000		2.3	%
GreyHeller LLC (d), (f), (j)	Cyber Security	Delayed Draw Term Loan (3M USD LIBOR+11.00%), 12.00% Cash, 12/31/2025	10/19/2020	$	2,250,000		2,233,173		2,250,000		0.7	%
GreyHeller LLC (f), (h)	Cyber Security	Series A Preferred Units	11/17/2016		850,000		850,000		3,924,291		1.3	%
		Total Cyber Security					10,071,722		13,174,291		4.3	%
Top Gun Pressure Washing, LLC (f)	Facilities Maintenance	First Lien Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024	8/12/2019	$	5,000,000		4,961,639		4,491,500		1.5	%
Top Gun Pressure Washing, LLC (f), (j)	Facilities Maintenance	Delayed Draw Term Loan (3M USD LIBOR+7.00%), 9.50% Cash, 8/12/2024	8/12/2019	$	1,825,000		1,810,198		1,639,397		0.6	%
TG Pressure Washing Holdings, LLC (f), (h)	Facilities Maintenance	Preferred Equity	8/12/2019		488,148		488,148		62,552		0.0	%
		Total Facilities Maintenance					7,259,985		6,193,449		2.1	%
Sub Total Affiliate investments							17,331,707		19,367,740		6.4	%
Control investments - 21.4% (b)
Netreo Holdings, LLC (g)	IT Services	First Lien Term Loan (3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK, 12/31/2025	7/3/2018	$	5,296,555		5,268,156		5,349,521		1.8	%
Netreo Holdings, LLC (g), (j)	IT Services	Delayed Draw Term Loan (3M USD LIBOR +6.25%), 9.00% Cash/2.75% PIK, 12/31/2020	5/26/2020	$	1,223,203		1,213,962		1,235,435		0.4	%
Netreo Holdings, LLC (g), (h)	IT Services	Common Stock Class A Unit	7/3/2018		3,150,000		3,150,000		8,634,768		2.8	%
		Total IT Services					9,632,118		15,219,724		5.0	%
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g)	Structured Finance Securities	Other/Structured Finance Securities 11.72%, 1/20/2030	1/22/2008	$	111,000,000		33,846,643		31,449,732		10.3	%
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-3 Note (a), (g)	Structured Finance Securities	Other/Structured Finance Securities (3M USD LIBOR+10.00%), 10.19%, 4/20/2033	2/26/2021	$	17,875,000		17,875,000		18,329,025		6.1	%
		Total Structured Finance Securities					51,721,643		49,778,757		16.4	%
Sub Total Control investments							61,353,761		64,998,481		21.4	%
TOTAL INVESTMENTS - 182.2% (b)						$	550,013,680	$	554,312,715		182.2	%

	Number of Shares		Cost		Fair Value		% of Net Assets
Cash and cash equivalents and cash and cash equivalents, reserve accounts - 6.2% (b)
U.S. Bank Money Market (l)		18,828,047	$	18,828,047	$	18,828,047		6.2	%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts		18,828,047	$	18,828,047	$	18,828,047		6.2	%

(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 November 30, 2021 non-qualifying assets represent 6.6% 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 $304,185,770 as of February 28, 2021.

(c)

(d)

These securities are either fully or partially pledged as collateral under a senior secured revolving credit facility (see Note 7 to the consolidated financial statements).

(e)

This investment does not have a stated interest rate that is payable thereon. As a result, the 11.72% interest rate in the table above represents the effective interest rate currently earned on the investment cost and is based on the current cash interest and other income generated by the investment.

(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 nine months ended November 30, 2021 in which the issuer was an affiliate are as follows:

Company	Purchases		Sales			Total Interest from Investments		Management Fee Income		Net Realized Gain (Loss) from Investments			Net Change in Unrealized Appreciation (Depreciation)
Elyria Foundry Company, L.L.C.	$	-	$	(2,309,806	)	$	172,626	$	-	$	(8,726,013	)	$	7,745,228
GreyHeller LLC		2,227,500		-			987,969		-		-			942,175
Top Gun Pressure Washing, LLC		1,806,750		-			668,294		-		-			(712,711	)
TG Pressure Washing Holdings, LLC		138,148		-			-		-		-			(425,596	)
Total	$	4,172,398	$	(2,309,806	)	$	1,828,889	$	-	$	(8,726,013	)	$	7,549,096

(g)

Company	Purchases		Sales			Total Interest from Investments		Management Fee Income		Net Realized Gain (Loss) from Investments		Net Change in Unrealized Appreciation (Depreciation)
Netreo Holdings, LLC	$	1,188,000	$	-		$	738,012	$	-	$	-	$	1,832,136
Saratoga Investment Corp. CLO 2013-1, Ltd.		14,000,000		-			3,535,591		2,507,626		-		(1,433,723	)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-2 Notes		-		(2,500,000	)		237,163		-		-		22,000
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-R-3 Note		17,875,000		-			15,187		-		-		454,025
Saratoga Investment Corp. CLO 2013-1, Ltd. Class G-R-2 Notes		-		(7,500,000	)		805,759		-		-		65,250
Saratoga Investment Corp. CLO 2013-1 Warehouse 2, Ltd.		22,500,000		(25,000,000	)		679,926		-		-		295,459
Total	$	55,563,000	$	(35,000,000	)	$	6,011,638	$	2,507,626	$	-	$	1,235,147

(h)

Non-income producing at February 28, 2021.

(i)

Includes securities issued by an affiliate of the Company.

(j)

All or a portion of this investment has an unfunded commitment as of February 28, 2021. (see Note 8 to the consolidated financial statements).

(k)

As of February 28, 2021, the investment was on non-accrual status. The fair value of these investments was approximately $2.1 million, which represented 0.4% of the Company’s portfolio (see Note 2 to the consolidated financial statements).

(l)

Included within cash and cash equivalents and cash and cash equivalents, reserve accounts in the Company’s consolidated statements of assets and liabilities as of February 28, 2021.

LIBOR - London Interbank Offered Rate

1M USD LIBOR - The 1 month USD LIBOR rate as of February 28, 2021 was 0.12%.

3M USD LIBOR - The 3 month USD LIBOR rate as of February 28, 2021 was 0.19%.

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

See accompanying notes to consolidated financial statements.

SARATOGA INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

November 30, 2021

(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 its 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-Avionte, Inc., SIA-AX, Inc., SIA-GH, Inc., SIA-MAC, Inc., SIA-PEP, 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). Tax blockers are consolidated for accounting purposes but are not consolidated for income tax purposes and may incur income tax expense 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. The new license will provide 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.

On October 26, 2021, the Company and TJHA JV I LLC entered into a Limited Liability Company Agreement (the “LLC Agreement”) to co-manage Saratoga Senior Loan Fund I JV LLC (“Saratoga JV”). Saratoga JV is a joint venture that is expected to invest in the debt or equity interests of collateralized loan obligations, loans, notes and other debt instruments.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), are stated in U.S. Dollars and include the accounts of the Company and its special purpose financing subsidiaries, Saratoga Investment Funding, LLC (previously known as GSC Investment Funding LLC), SIF II, SBIC LP, SBIC II LP, SIA-Avionte, Inc., SIA-AX, Inc., SIA-GH, Inc., SIA-MAC, Inc., SIA-PEP., SIA-PP, Inc., SIA-TG, Inc., SIA-TT, Inc., SIA-Vector, Inc. and SIA-VR, Inc. All intercompany accounts and transactions have been eliminated in consolidation. All references made to the “Company,” “we,” and “us” herein include Saratoga Investment Corp. and its consolidated subsidiaries, except as stated otherwise.

The Company, SBIC LP, SBIC II LP and SIF II 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 three months ended November 30, 2021.

Use of Estimates in the Preparation of Financial Statements

The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and income, gains (losses) and expenses during the period reported. Actual results could differ materially from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include short-term, liquid investments in a money market fund. Cash and cash equivalents are carried at cost which approximates fair value. Pursuant to Section 12(d)(1)(A) of the 1940 Act, the Company may not invest in another registered investment company (including Section 3(c)(1) and Section 3(c)(7) funds for this purpose), such as a money market fund (except as permitted under Rule 12d1-1 under the 1940 Act which is designed to permit "cash sweep" arrangements rather than investments directly in short-term instruments), 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 stock;

●

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 November 30, 2021, the Company did not exceed any of these limitations.

Cash and Cash Equivalents, Reserve Accounts

Cash and cash equivalents, reserve accounts include amounts held in designated bank accounts in the form of cash and short-term liquid investments in money market funds, representing payments received on secured investments or other reserved amounts associated with the 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:

	November 30, 2021		November 30, 2020
Cash and cash equivalents	$	120,881,990	$	21,060,224
Cash and cash equivalents, reserve accounts		23,186,481		12,836,663
Total cash and cash equivalents and cash and cash equivalents, reserve accounts	$	144,068,471	$	33,896,887

Investment Classification

The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, “Control Investments” are defined as investments in companies in which we own more than 25.0% of the voting securities or maintain greater than 50.0% of the board representation. Under the 1940 Act, “Affiliated Investments” are defined as those non-control investments in companies in which we own between 5.0% and 25.0% of the voting securities. Under the 1940 Act, “Non-affiliated Investments” are defined as investments that are neither Control Investments nor Affiliated Investments.

Investment Valuation

The Company accounts for its investments at fair value in accordance with the FASB ASC Topic 820, Fair Value Measurement (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires the Company to assume that its investments are to be sold or its liabilities are to be transferred at the measurement date in the principal market to independent market participants, or in the absence of a principal market, in the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact.

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

●

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 Investment Corp. CLO 2013-1, Ltd. (“Saratoga CLO”) is carried at fair value, which is based on a discounted cash flow valuation technique that utilizes prepayment, re-investment and loss inputs based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and comparable yields for equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by our Manager and recommended to our board of directors. Specifically, we use Intex cash flows, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The cash flows use a set of inputs including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The inputs are based on available market data and projections provided by third parties as well as management estimates. The Company uses the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine the valuation for our investment in Saratoga CLO.

Because such valuations, and particularly valuations of private investments and private companies, are inherently uncertain, they may fluctuate over short periods of time and may be based on estimates. The determination of fair value may differ materially from the values that would have been used if a ready market for these investments existed. The Company’s net asset value could be materially affected if the determinations regarding the fair value of our investments were materially higher or lower than the values that we ultimately realize upon the disposal of such investments.

Derivative Financial Instruments

The Company accounts for derivative financial instruments in accordance with FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”). ASC 815 requires recognizing all derivative instruments as either assets or liabilities on the consolidated statements of assets and liabilities at fair value. The Company values derivative contracts at the closing fair value provided by the counterparty. Changes in the values of derivative contracts are included in the consolidated statements of operations.

Investment Transactions and Income Recognition

Purchases and sales of investments and the related realized gains or losses are recorded on a trade-date basis. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis to the extent that such amounts are expected to be collected. The Company stops accruing interest on its investments when it is determined that interest is no longer collectible. Discounts and premiums on investments purchased are accreted/amortized using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of discounts over the life of the investment and amortization of premiums on investments up to the earliest call date.

Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Accrued interest is generally reserved when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as a reduction in principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection. At November 30, 2021, there were no investments on non-accrual status. At February 28, 2021, certain investments in two portfolio companies, including preferred equity interests, were on non-accrual status with a fair value of approximately $2.1 million, or 0.4% of the fair value of our portfolio.

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

Dividends income is recorded in the consolidated statements of operations when earned.

Structuring and Advisory Fee Income

Structuring and advisory fee income represents various fee income earned and received performing certain investment structuring and advisory activities during the closing of new investments.

Other Income

Other income includes prepayment income fees, and origination, monitoring, administration and amendment fees and is recorded in the consolidated statements of operations when earned.

Deferred Debt Financing Costs

Financing costs incurred in connection with the Encina 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-guaranteed debentures issued to SBIC LP and SBIC II LP are deferred and amortized using the straight-line method over the life of the debentures.

The Company presents deferred debt financing costs on the balance sheet as a contra-liability as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts.

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 31and (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.

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 may elect 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, 2021, the Company did not incur any interest or penalties. Although we file federal and state tax returns, our major tax jurisdiction is federal. The 2018, 2019, 2020 and 2021 federal tax years for the Company remain subject to examination by the IRS. As of November 30, 2021 and February 28, 2021, 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 realized capital gains net of realized and unrealized losses for the period.

New Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The 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:

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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.

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 November 30, 2021 (dollars in thousands), according to the fair value hierarchy:

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
First lien term loans	$	-	$	-	$	505,619	$	505,619
Second lien term loans		-		-		44,416		44,416
Unsecured term loans		-		-		2,738		2,738
Structured finance securities		-		-		40,665		40,665
Equity interests		-		-		68,355		68,355
Total	$	-	$	-	$	661,793	$	661,793

The following table presents fair value measurements of investments, by major class, as of February 28, 2021 (dollars in thousands), according to the fair value hierarchy:

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
First lien term loans	$	-	$	-	$	440,456	$	440,456
Second lien term loans		-		-		24,930		24,930
Unsecured term loans		-		-		2,141		2,141
Structured finance securities		-		-		49,779		49,779
Equity interests		-		-		37,007		37,007
Total	$	-	$	-	$	554,313	$	554,313

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the nine months ended November 30, 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		309			70			498		(546	)		790			1,121
Net accretion of discount on investments		1,346			22			-		-			-			1,368
Net change in unrealized appreciation (depreciation) on investments		2,292			(431	)		99		(68	)		12,254			14,146
Purchases		226,786			19,825			-		-			47,143			293,754
Sales and repayments		(165,570	)		-			-		(8,360	)		(42,307	)		(216,237	)
Net realized gain (loss) from investments		-			-			-		(140	)		13,468			13,328
Balance as of November 30, 2021	$	505,619		$	44,416		$	2,738	$	40,665		$	68,355		$	661,793
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	$	3,597		$	(431	)	$	99	$	386		$	11,837		$	15,488

Purchases, payment-in-kind 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 restructures in or out of Levels 1, 2 or 3 during the nine months ended November 30, 2021.

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the nine months ended November 30, 2020 (dollars in thousands):

	First lien term loans			Second lien term loans			Unsecured term loans			Structured finance securities			Equity interests			Total
Balance as of February 29, 2020	$	346,233		$	73,570		$	4,346		$	32,470		$	29,013		$	485,632
Payment-in-kind and other adjustments to cost		625			1,034			-			(3,061	)		-			(1,402	)
Net accretion of discount on investments		772			193			-			-			-			965
Net change in unrealized appreciation (depreciation) on investments		(7,915	)		(1,770	)		(29	)		1,890			(1,547	)		(9,371	)
Purchases		95,891			-			22,500			-			3,636			122,027
Sales and repayments		(27,929	)		(23,000	)		-			-			-			(50,929	)
Net realized gain (loss) from investments		22			-			-			-			-			22
Balance as of November 30, 2020	$	407,699		$	50,027		$	26,817		$	31,299		$	31,102		$	546,944
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	$	(7,636	)	$	(1,722	)	$	(29	)	$	1,889		$	(1,546	)	$	(9,044	)

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of November 30, 2021 were as follows (dollars in thousands):

	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average*
First lien term loans	$	505,619	Market Comparables	Market Yield (%)	6.0% - 14.6%		8.7	%
				EBITDA Multiples (x)	6.7x		6.7	x
				Revenue Multiples (x)	3.5x - 6.7x		5.6	x
Second lien term loans		44,416	Market Comparables	Market Yield (%)	8.7% - 31.5%		15.1	%
				EBITDA Multiples (x)	7.5x		7.5	x
Unsecured term loans		2,738	Market Comparables	Market Yield (%)	15.8%		15.8	%
Structured finance securities		40,665	Discounted Cash Flow	Discount Rate (%)	10.0% - 15.0%		14.2	%
				Recovery Rate (%)	35% - 70%		70.0	%
				Prepayment Rate (%)	20.0%		20.0	%
Equity interests		68,355	Enterprise Value Waterfall	EBITDA Multiples (x)	2.6x - 28.6x		9.1	x
				Revenue Multiples (x)	1.0x - 11.7x		6.3	x
Total	$	661,793

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, 2021 were as follows (dollars in thousands):

	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average*
First lien term loans	$	440,456	Market Comparables	Market Yield (%)	5.8% - 18.7%		9.7	%
				EBITDA Multiples (x)	6.8x		6.8	x
				Revenue Multiples (x)	4.1x - 8.0x		7.5	x
Second lien term loans		24,930	Market Comparables	Market Yield (%)	10.0% - 24.5%		16.5	%
				EBITDA Multiples (x)	7.5x		7.5	x
Unsecured term loans		2,141	Market Comparables	Market Yield (%)	31.1%		31.1	%
				EBITDA Multiples (x)	5.2x		5.2	x
Structured finance securities		49,779	Discounted Cash Flow	Discount Rate (%)	10.0% - 15.00%		13.8	%
				Recovery Rate (%)	35.0% - 70.0%		70.0	%
				Prepayment Rate (%)	20.0%		20.0	%
Equity interests		37,007	Enterprise Value Waterfall	EBITDA Multiples (x)	4.0x - 14.0x		9.7	x
				Revenue Multiples (x)	0.5x - 38.3x		4.6	x
Total	$	554,313

The weighted average in the table above is calculated based on each investment’s fair value weighting, using the applicable unobservable input.

For investments utilizing a market comparables valuation technique, a significant increase (decrease) in the market yield, in isolation, would result in a significantly lower (higher) fair value measurement, and a significant increase (decrease) in any of the earnings before interest, tax, depreciation and amortization (“EBITDA”) or revenue valuation multiples, in isolation, would result in a significantly higher (lower) fair value measurement. For investments utilizing a discounted cash flow valuation technique, a significant increase (decrease) in the discount rate, and prepayment rate, in isolation, would result in a significantly lower (higher) fair value measurement while a significant increase (decrease) in recovery rate, in isolation, would result in a significantly higher (lower) fair value measurement. For investments utilizing a market quote in deriving a value, a significant increase (decrease) in the market quote, in isolation, would result in a significantly higher (lower) fair value measurement.

The composition of our investments as of November 30, 2021 at amortized cost and fair value was as follows (dollars in thousands):

	Investments at Amortized Cost		Amortized Cost Percentage of Total Portfolio			Investments at Fair Value		Fair Value Percentage of Total Portfolio
First lien term loans	$	504,460		78.4	%	$	505,619		76.4	%
Second lien term loans		49,808		7.8			44,416		6.7
Unsecured term loans		2,759		0.4			2,738		0.4
Structured finance securities		42,676		6.6			40,665		6.2
Equity interests		43,644		6.8			68,355		10.3
Total	$	643,347		100.0	%	$	661,793		100.0	%

The composition of our investments as of February 28, 2021 at amortized cost and fair value was as follows (dollars in thousands):

	Investments at Amortized Cost		Amortized Cost Percentage of Total Portfolio			Investments at Fair Value		Fair Value Percentage of Total Portfolio
First lien term loans	$	441,590		80.3	%	$	440,456		79.5	%
Second lien term loans		29,891		5.4			24,930		4.4
Unsecured term loans		2,261		0.4			2,141		0.4
Structured finance securities		51,722		9.4			49,779		9.0
Equity interests		24,550		4.5			37,007		6.7
Total	$	550,014		100.0	%	$	554,313		100.0	%

For loans and debt securities for which market quotations are not available, we determine their fair value based on third party indicative broker quotes, where available, or the inputs that a hypothetical market participant would use to value the security in a current hypothetical sale using a market comparables valuation technique. In applying the market comparables valuation technique, we determine the fair value based on such factors as market participant inputs including synthetic credit ratings, estimated remaining life, current market yield and interest rate spreads of similar securities as of the measurement date. If, in our judgment, the market comparables technique is not sufficient or appropriate, we may use additional techniques such as an asset liquidation or expected recovery model.

For equity securities of portfolio companies and partnership interests, we determine the fair value using an enterprise value waterfall valuation technique. Under the enterprise value waterfall valuation technique, we determine the enterprise fair value of the portfolio company and then waterfall the enterprise value over the portfolio company’s securities in order of their preference relative to one another. To estimate the enterprise value of the portfolio company, we weigh some or all of the traditional market valuation techniques and factors based on the individual circumstances of the portfolio company in order to estimate the enterprise value. The techniques for performing investments may be based on, among other things: valuations of comparable public companies, recent sales of private and public comparable companies, discounting the forecasted cash flows of the portfolio company, third party valuations of the portfolio company, considering offers from third parties to buy the company, estimating the value to potential strategic buyers and considering the value of recent investments in the equity securities of the portfolio company. For non-performing investments, we may estimate the liquidation or collateral value of the portfolio company’s assets and liabilities. We also take into account historical and anticipated financial results.

Our investment in Saratoga CLO is carried at fair value, which is based on a discounted cash flow valuation technique that utilizes prepayment, re-investment and loss inputs based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and comparable yields for equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by our Manager and recommended to our board of directors. Specifically, we use Intex cash flows, or an appropriate substitute, to form the basis for the valuation of our investment in Saratoga CLO. The cash flows use a set of inputs including projected default rates, recovery rates, reinvestment rates and prepayment rates in order to arrive at estimated valuations. The inputs are based on available market data and projections provided by third parties as well as management estimates. In connection with the refinancing of the Saratoga CLO liabilities, we ran Intex models based on inputs about the refinanced Saratoga CLO’s structure, including capital structure, cost of liabilities and reinvestment period. We use the output from the Intex models (i.e., the estimated cash flows) to perform a discounted cash flow analysis on expected future cash flows to determine a valuation for our investment in Saratoga CLO at November 30, 2021. The inputs at November 30, 2021 for the valuation model include:

●

Default rate: 2%

●

Recovery rate: 35% -70%

●

Discount rate: 10% – 15%

●

Prepayment rate: 20%

●

Reinvestment rate / price: L+365bps / $99.25

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 November 30, 2021.

Hematerra Holdings Company, LLC

HemaTerra Holding Company, LLC (“HemaTerra”) 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.

Saratoga Investment Corp. CLO 2013-1, Ltd.

The Company has a collateral management agreement with Saratoga CLO, pursuant to which the Company acts as its collateral manager. The Saratoga CLO invests primarily in senior secured first lien term loans. The Company also holds an investment in the subordinated note and Class F-2-R-3 Notes of the Saratoga CLO.

Note 4. Investment in Saratoga Investment Corp. CLO 2013-1, Ltd. (“Saratoga CLO”)

On January 22, 2008, the Company entered into a collateral management agreement with Saratoga CLO, pursuant to which the Company acts as its collateral manager. The Saratoga CLO was initially refinanced in October 2013 with its reinvestment period extended to October 2016. On November 15, 2016, the Company completed a second refinancing of the Saratoga CLO with its reinvestment period extended to October 2018.

On 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 aggregate principal amount of the Class G-R-2 notes tranches at par, with a coupon of 3M USD LIBOR plus 8.75% and 3M USD LIBOR plus 10.00%, respectively. As part of this refinancing, the Company also redeemed our existing $4.5 million aggregate amount of the Class F notes tranche at par.

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 refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. A non-call period ending February 2022 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million 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.

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 November 30, 2021 and November 30, 2020, we accrued management fee income of $0.8 million and $0.6 million, respectively, and interest income of $1.1 million and $1.1 million, respectively, from the subordinated notes of Saratoga CLO.

For the nine months ended November 30, 2021 and November 30, 2020, we accrued management fee income of $2.4 million and $1.9 million, respectively, and interest income of $3.5 million and $2.4 million, respectively, from the subordinated notes of the Saratoga CLO.

As of November 30, 2021, 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 $31.3 million and $9.4 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 November 30, 2021, Saratoga CLO had investments with a principal balance of $683.2 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 November 30, 2021, the present value of the projected future cash flows of the subordinated notes was approximately $31.7 million, using a 15.0% discount rate. The Company’s total investment in the subordinate notes of Saratoga CLO is $57.8 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 $70.8 million, management fees of $27.8 million and incentive fees of $1.2 million. In conjunction with the third refinancing of the 2013-1 Reset CLO Notes on December 14, 2018, the Company is no longer entitled to receive an incentive management fee from Saratoga CLO.

As of February 28, 2021, the Company determined that the fair value of its investment in the subordinated notes of Saratoga CLO was $31.4 million. The Company determines the fair value of its investment in the subordinated notes of Saratoga CLO based on the present value of the projected future cash flows of the subordinated notes over the life of Saratoga CLO. As of February 28, 2021, the fair value of its investment in the Class F-R-3 Notes was $18.3 million. As of February 28, 2021, Saratoga CLO had investments with a principal balance of $603.7 million and a weighted average spread over LIBOR of 3.8% and had debt with a principal balance of $611.0 million with a weighted average spread over LIBOR of 2.2%. As a result, Saratoga CLO earns a “spread” between the interest income it receives on its investments and the interest expense it pays on its debt and other operating expenses, which is distributed quarterly to the Company as the holder of its subordinated notes. As of February 28, 2021, the present value of the projected future cash flows of the subordinated notes was approximately $31.7 million, using a 15.0% discount rate.

Below is certain financial information from the separate financial statements of Saratoga CLO as of November 30, 2021 (unaudited) and February 28, 2021 and for the three and nine months ended November 30, 2021 (unaudited) and November 30, 2020 (unaudited).

Saratoga Investment Corp. CLO 2013-1, Ltd.

Statements of Assets and Liabilities

	November 30, 2021			February 28, 2021
	(unaudited)
ASSETS
Investments at fair value
Loans at fair value (amortized cost of $675,359,709 and $594,722,350, respectively)	$	666,709,161		$	591,518,866
Equities at fair value (amortized cost of $0 and $527,124, respectively)		-			501,175
Total investments at fair value (amortized cost of $675,359,709 and $595,249,474, respectively)		666,709,161			592,020,041
Cash and cash equivalents		8,059,084			114,145,406
Receivable from open trades		8,380,929			1,901,754
Interest receivable (net of reserve of $0 and $35,000, respectively)		2,033,523			1,497,333
Prepaid expenses and other assets		5,894			118,868
Total assets	$	685,188,591		$	709,683,402

LIABILITIES
Interest payable	$	1,655,129		$	124,233
Payable from open trades		43,299,500			66,298,568
Accrued base management fee		72,548			6,930
Accrued subordinated management fee		290,192			27,715
Accounts payable and accrued expenses		134,149			809,760
Due to Affiliate		-			2,600,000
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		(274,235	)		(292,368	)
Class E-R-3 Deferrable Mezzanine Floating Rate Notes		27,625,000			27,625,000
Discount on Class E-R-3 Notes		(2,848,999	)		(3,037,380	)
Class F-1-R-3 Notes Deferrable Junior Floating Rate Notes		8,500,000			17,875,000
Class F-2-R-3 Notes Deferrable Junior Floating Rate Notes		9,375,000			-
Deferred debt financing costs		(2,134,391	)		(2,276,780	)
Subordinated Notes		111,000,000			111,000,000
Discount on Subordinated Notes		(45,059,972	)		(48,039,412	)
Total liabilities	$	717,133,921		$	738,221,266
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)		(31,945,580	)		(28,538,114	)
Total net assets		(31,945,330	)		(28,537,864	)
Total liabilities and net assets	$	685,188,591		$	709,683,402

See accompanying notes to financial statements.

Saratoga Investment Corp. CLO 2013-1, Ltd.

Statements of Operations

(unaudited)

	For the three months ended						For the nine months ended
	November 30, 2021			November 30, 2020			November 30, 2021			November 30, 2020
INVESTMENT INCOME
Total interest from investments	$	7,423,609		$	6,646,110			23,037,547			20,297,400
Interest from cash and cash equivalents		-			191			691			3,692
Other income		164,151			174,585			681,528			469,195
Total investment income		7,587,760			6,820,886			23,719,766			20,770,287

EXPENSES
Interest and debt financing expenses		7,122,812			5,773,135			17,528,546			18,831,060
Base management fee		162,752			124,763			489,323			376,765
Subordinated management fee		651,010			499,054			1,957,293			1,507,060
Professional fees		75,574			146,170			220,931			329,442
Trustee expenses		70,558			54,706			191,887			160,440
Other expense		152,484			1,935			266,423			42,215
Total expenses		8,235,190			6,599,763			20,654,403			21,246,982
NET INVESTMENT INCOME (LOSS)		(647,430	)		221,123			3,065,363			(476,695	)

REALIZED AND UNREALIZED LOSS ON INVESTMENTS
Net realized loss from investments		(662,289	)		(3,089,206	)		(1,051,714	)		(9,231,676	)
Net change in unrealized appreciation (depreciation) on investments		(4,277,923	)		14,923,956			(5,421,115	)		9,806,306
Net realized and unrealized gain (loss) on investments		(4,940,212	)		11,834,750			(6,472,829	)		574,630
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(5,587,642	)	$	12,055,873		$	(3,407,466	)	$	97,935

See accompanying notes to financial statements

Saratoga Investment Corp. CLO 2013-1, Ltd.

Schedule of Investments

November 30, 2021

(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
Fusion Connect Warrant	Telecommunications	Warrants	Equity	-	-			-			-		-		32,832		-			-
ABB Con-Cise Optical Group LLC	Consumer goods: Non-durable	First Lien	Loan	6M USD LIBOR+	5.00	%		1.00	%		6.00	%	6/15/2023	$	2,044,269	$	2,034,953		$	1,967,098
ADMI Corp.	Healthcare & Pharmaceuticals	First Lien	Loan	1M USD LIBOR+	2.75	%		0.00	%		2.84	%	4/30/2025		1,935,276		1,930,002			1,898,989
Adtalem Global Education Inc.	Services: Business	First Lien	Loan	1M USD LIBOR+	4.50	%		0.75	%		5.25	%	8/11/2028		2,000,000		1,980,847			1,995,000
Aegis Sciences Corporation	Healthcare & Pharmaceuticals	First Lien	Loan	3M USD LIBOR+	5.50	%		1.00	%		6.50	%	5/9/2025		3,159,652		3,143,003			3,049,065
Agiliti Health Inc.	Healthcare & Pharmaceuticals	First Lien	Loan	1M USD LIBOR+	2.75	%		0.00	%		2.88	%	1/4/2026		1,487,500		1,480,205			1,472,625
Agiliti Health Inc.	Healthcare & Pharmaceuticals	First Lien	Loan	1M USD LIBOR+	2.75	%		0.75	%		3.50	%	1/4/2026		384,464		381,389			382,061
AHEAD DB Holdings, LLC	Services: Business	First Lien	Loan	3M USD LIBOR+	3.75	%		0.75	%		4.50	%	10/18/2027		2,992,500		2,888,755			2,981,907
AI Convoy (Luxembourg) S.a.r.l.	Aerospace & Defense	First Lien	Loan	6M USD LIBOR+	3.50	%		1.00	%		4.50	%	1/18/2027		1,473,470		1,468,051			1,472,158
AIS HoldCo, LLC	Services: Business	First Lien	Loan	3M USD LIBOR+	5.00	%		0.00	%		5.13	%	8/15/2025		5,142,632		5,005,997			5,039,780
Alchemy Copyrights, LLC	Media: Diversified & Production	First Lien	Loan	1M USD LIBOR+	3.00	%		0.50	%		3.50	%	3/10/2028		495,009		491,946			491,297
Alchemy US Holdco 1, LLC	Metals & Mining	First Lien	Loan	1M USD LIBOR+	5.50	%		0.00	%		5.59	%	10/10/2025		1,654,803		1,639,692			1,648,598
AlixPartners, LLP	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.75	%		0.50	%		3.25	%	2/4/2028		248,750		248,181			247,367
Alkermes, Inc.	Healthcare & Pharmaceuticals	First Lien	Loan	3M USD LIBOR+	2.50	%		0.50	%		3.00	%	3/12/2026		497,500		496,423			490,038
Allen Media, LLC	Media: Diversified & Production	First Lien	Loan	3M USD LIBOR+	5.50	%		0.00	%		5.63	%	2/10/2027		712,500		704,162			704,933
Allen Media, LLC	Media: Diversified & Production	First Lien	Loan	3M USD LIBOR+	5.50	%		0.00	%		5.63	%	2/10/2027		783,725		769,688			775,402
Allen Media, LLC	Media: Diversified & Production	First Lien	Loan	3M USD LIBOR+	5.50	%		0.00	%		5.63	%	2/10/2027		2,954,527		2,943,384			2,923,150
Alliant Holdings I, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.50	%		0.50	%		4.00	%	11/5/2027		1,000,000		998,750			993,930
Allied Universal Holdco LLC	Services: Business	First Lien	Loan	3M USD LIBOR+	3.75	%		0.50	%		4.25	%	5/12/2028		2,000,000		1,990,006			1,981,000
Altisource Solutions S.a r.l.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	3M USD LIBOR+	4.00	%		1.00	%		5.00	%	4/3/2024		1,223,297		1,219,562			1,108,613
Altium Packaging LLC	Containers, Packaging & Glass	First Lien	Loan	1M USD LIBOR+	2.75	%		0.50	%		3.25	%	1/29/2028		497,500		495,211			488,261
American Greetings Corporation	Media: Advertising, Printing & Publishing	First Lien	Loan	1M USD LIBOR+	4.50	%		1.00	%		5.50	%	4/6/2024		3,493,509		3,491,643			3,491,343
American Trailer World Corp	Automotive	First Lien	Loan	1M USD LIBOR+	3.75	%		0.75	%		4.50	%	3/3/2028		1,995,000		1,989,046			1,973,394
AmeriLife Holdings LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	4.00	%		0.00	%		4.09	%	3/18/2027		1,981,419		1,971,356			1,964,081
AmWINS Group, LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.25	%		0.75	%		3.00	%	2/17/2028		1,985,003		1,961,245			1,955,228
Anastasia Parent LLC	Consumer goods: Non-durable	First Lien	Loan	3M USD LIBOR+	3.75	%		0.00	%		3.88	%	8/11/2025		970,000		967,180			835,762
Anchor Glass Container Corporation	Containers, Packaging & Glass	First Lien	Loan	3M USD LIBOR+	2.75	%		1.00	%		3.75	%	12/7/2023		476,356		475,532			413,920
Anchor Packaging, LLC	Containers, Packaging & Glass	First Lien	Loan	1M USD LIBOR+	4.00	%		0.00	%		4.09	%	7/18/2026		989,873		981,515			977,500
ANI Pharmaceuticals, Inc.	Healthcare & Pharmaceuticals	First Lien	Loan	1M USD LIBOR+	6.00	%		0.75	%		6.75	%	5/24/2027		3,000,000		2,940,079			3,006,240
AP Core Holdings II LLC	High Tech Industries	First Lien	Loan	1M USD LIBOR+	5.50	%		0.75	%		6.25	%	9/1/2027		2,000,000		1,970,974			1,993,120
AP Core Holdings II LLC	High Tech Industries	First Lien	Loan	1M USD LIBOR+	5.50	%		0.75	%		6.25	%	9/1/2027		500,000		492,754			498,540
APi Group DE, Inc. (J2 Acquisition)	Services: Business	First Lien	Loan	1M USD LIBOR+	2.50	%		0.00	%		2.59	%	10/1/2026		1,950,000		1,941,671			1,941,479
APLP Holdings Limited Partnership	Energy: Electricity	First Lien	Loan	1M USD LIBOR+	3.75	%		1.00	%		4.75	%	5/14/2027		917,568		909,036			923,302
Apollo Commercial Real Estate Finance, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.75	%		0.00	%		2.84	%	5/15/2026		2,977,157		2,942,637			2,934,376
Apollo Commercial Real Estate Finance, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.50	%		0.50	%		4.00	%	3/6/2028		995,000		985,774			985,050
AppLovin Corporation	High Tech Industries	First Lien	Loan	1M USD LIBOR+	3.25	%		0.00	%		3.34	%	8/15/2025		992,347		992,347			987,028
AppLovin Corporation	High Tech Industries	First Lien	Loan	1M USD LIBOR+	3.00	%		0.50	%		3.50	%	10/21/2028		1,500,000		1,496,250			1,488,750
Aramark Corporation	Services: Consumer	First Lien	Loan	1M USD LIBOR+	1.75	%		0.00	%		1.84	%	1/15/2027		2,331,250		2,265,442			2,275,463
Aramark Corporation	Services: Consumer	First Lien	Loan	1M USD LIBOR+	2.50	%		0.00	%		2.59	%	4/1/2028		1,753,715		1,745,601			1,738,914
ARC FALCON I INC.	Chemicals, Plastics, & Rubber	First Lien	Loan	1M USD LIBOR+	3.75	%		0.50	%		4.25	%	9/23/2028		872,611		868,332			866,250
ARC FALCON I INC.(a)	Chemicals, Plastics, & Rubber	First Lien	Loan	N/A	3.75	%		0.50	%		0.00	%	9/22/2028		-		(623	)		(929	)
Arctic Glacier U.S.A., Inc.	Beverage, Food & Tobacco	First Lien	Loan	3M USD LIBOR+	3.50	%		1.00	%		4.50	%	3/20/2024		3,350,967		3,340,070			3,156,477
Aretec Group, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	4.25	%		0.00	%		4.34	%	10/1/2025		2,442,442		2,436,497			2,435,311
ARISTOCRAT LEISURE LIMITED	Hotel, Gaming & Leisure	First Lien	Loan	1M USD LIBOR+	3.75	%		1.00	%		4.75	%	10/19/2024		987,500		974,020			985,239
ASP BLADE HOLDINGS, INC.	Capital Equipment	First Lien	Loan	1M USD LIBOR+	4.00	%		0.50	%		4.50	%	10/7/2028		100,000		99,505			99,667
Asplundh Tree Expert, LLC	Services: Business	First Lien	Loan	1M USD LIBOR+	1.75	%		0.00	%		1.84	%	9/7/2027		990,000		985,861			982,575
Assuredpartners Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.50	%		0.50	%		4.00	%	2/12/2027		997,500		997,500			989,021
ASTRO ONE ACQUISITION CORPORATION	Consumer goods: Durable	First Lien	Loan	3M USD LIBOR+	5.50	%		0.75	%		6.25	%	9/15/2028		3,000,000		2,970,220			2,964,990
Asurion, LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.13	%		0.00	%		3.22	%	11/3/2023		266,824		265,961			265,658
Asurion, LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.25	%		0.00	%		3.34	%	12/18/2026		3,002,675		2,990,993			2,954,632
Avast Software S.R.O. (Sybil Finance)	High Tech Industries	First Lien	Loan	3M USD LIBOR+	2.00	%		0.00	%		2.13	%	3/12/2028		1,950,000		1,945,458			1,939,275

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
Avaya, Inc.	Telecommunications	First Lien	Loan	1M USD LIBOR+	4.25	%		0.00	%		4.34	%	12/15/2027		1,755,766		1,746,961		1,750,130
Avaya, Inc.	Telecommunications	First Lien	Loan	1M USD LIBOR+	4.00	%		0.00	%		4.09	%	12/15/2027		1,000,000		1,000,000		996,250
Avison Young (Canada) Inc	Services: Business	First Lien	Loan	3M USD LIBOR+	6.00	%		0.00	%		6.12	%	1/31/2026		3,414,773		3,376,579		3,369,971
Avolon TLB Borrower 1 (US) LLC	Capital Equipment	First Lien	Loan	1M USD LIBOR+	1.75	%		0.75	%		2.50	%	1/15/2025		1,000,000		892,270		994,770
Avolon TLB Borrower 1 (US) LLC	Capital Equipment	First Lien	Loan	1M USD LIBOR+	2.25	%		0.50	%		2.75	%	12/1/2027		496,250		491,908		494,741
AZURITY PHARMACEUTICALS, INC.	Healthcare & Pharmaceuticals	First Lien	Loan	Prime+	5.00	%		0.75	%		8.25	%	9/20/2027		500,000		485,257		486,665
B&G Foods, Inc.	Beverage, Food & Tobacco	First Lien	Loan	1M USD LIBOR+	2.50	%		0.00	%		2.59	%	10/10/2026		706,458		701,479		704,162
B.C. Unlimited Liability Co (Burger King)	Beverage, Food & Tobacco	First Lien	Loan	1M USD LIBOR+	1.75	%		0.00	%		1.84	%	11/19/2026		1,473,750		1,441,070		1,438,748
Baldwin Risk Partners, LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.50	%		0.50	%		4.00	%	10/14/2027		1,241,888		1,228,487		1,234,126
BALL METALPACK, LLC (PE Spray)	Containers, Packaging & Glass	First Lien	Loan	3M USD LIBOR+	4.50	%		0.00	%		4.68	%	7/25/2025		3,874,850		3,863,794		3,845,788
Belfor Holdings Inc.	Services: Consumer	First Lien	Loan	1M USD LIBOR+	4.00	%		0.00	%		4.09	%	4/6/2026		248,728		248,467		248,106
Belron Finance US LLC	Automotive	First Lien	Loan	3M USD LIBOR+	2.75	%		0.50	%		3.25	%	4/13/2028		1,990,000		1,971,517		1,981,304
Blackstone Mortgage Trust, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.34	%	4/23/2026		992,405		985,999		980,000
Blackstone Mortgage Trust, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.75	%		0.50	%		3.25	%	4/23/2026		1,483,781		1,474,142		1,476,362
Blucora, Inc.	Services: Consumer	First Lien	Loan	3M USD LIBOR+	4.00	%		1.00	%		5.00	%	5/22/2024		2,445,311		2,439,268		2,439,197
Blue Tree Holdings, Inc.	Chemicals, Plastics, & Rubber	First Lien	Loan	3M USD LIBOR+	2.50	%		0.00	%		2.64	%	3/4/2028		995,000		992,695		990,025
Bombardier Recreational Products, Inc.	Consumer goods: Durable	First Lien	Loan	1M USD LIBOR+	2.00	%		0.00	%		2.09	%	5/24/2027		1,473,800		1,464,462		1,451,457
Boxer Parent Company, Inc.	High Tech Industries	First Lien	Loan	3M USD LIBOR+	3.75	%		0.00	%		3.88	%	10/2/2025		524,359		524,359		518,460
Bracket Intermediate Holding Corp	Healthcare & Pharmaceuticals	First Lien	Loan	3M USD LIBOR+	4.25	%		0.00	%		4.38	%	9/5/2025		970,000		967,183		967,274
BrightSpring Health Services (Phoenix Guarantor)	Healthcare & Pharmaceuticals	First Lien	Loan	1M USD LIBOR+	3.50	%		0.00	%		3.59	%	3/5/2026		995,000		995,000		984,682
BroadStreet Partners, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.00	%		0.00	%		3.09	%	1/22/2027		2,986,688		2,980,890		2,935,048
Brookfield WEC Holdings Inc.	Energy: Electricity	First Lien	Loan	1M USD LIBOR+	2.75	%		0.50	%		3.25	%	8/1/2025		1,481,269		1,483,597		1,460,131
Brooks Automation, Inc.	High Tech Industries	First Lien	Loan	3M USD SOFR+	3.35	%		0.50	%		3.85	%	11/17/2028		1,000,000		994,999		993,130
Buckeye Partners, L.P.	Utilities: Oil & Gas	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.34	%	11/1/2026		1,975,063		1,962,447		1,962,402
BW Gas & Convenience Holdings LLC	Beverage, Food & Tobacco	First Lien	Loan	1M USD LIBOR+	3.50	%		0.50	%		4.00	%	3/31/2028		2,493,750		2,470,693		2,478,164
Callaway Golf Company	Retail	First Lien	Loan	1M USD LIBOR+	4.50	%		0.00	%		4.59	%	1/4/2026		684,375		675,279		687,085
CareerBuilder, LLC	Services: Business	First Lien	Loan	3M USD LIBOR+	6.75	%		1.00	%		7.75	%	7/31/2023		5,393,388		5,222,788		4,456,287
CareStream Health, Inc.	Healthcare & Pharmaceuticals	First Lien	Loan	6M USD LIBOR+	6.75	%		1.00	%		7.75	%	5/8/2023		2,210,996		2,208,405		2,214,224
Casa Systems, Inc	Telecommunications	First Lien	Loan	3M USD LIBOR+	4.00	%		1.00	%		5.00	%	12/20/2023		1,394,875		1,390,315		1,354,772
Castle US Holding Corporation	Media: Advertising, Printing & Publishing	First Lien	Loan	3M USD LIBOR+	3.75	%		0.00	%		3.88	%	1/27/2027		1,984,316		1,972,500		1,957,349
CBI BUYER, INC.	Consumer goods: Durable	First Lien	Loan	3M USD LIBOR+	3.25	%		0.50	%		3.75	%	1/6/2028		997,500		995,355		987,276
CCC Intelligent Solutions Inc.	Services: Business	First Lien	Loan	3M USD LIBOR+	2.50	%		0.50	%		3.00	%	9/16/2028		250,000		249,395		248,595
CCI Buyer, Inc	Telecommunications	First Lien	Loan	3M USD LIBOR+	3.75	%		0.75	%		4.50	%	12/17/2027		248,750		246,540		247,942
CCRR Parent, Inc.	Healthcare & Pharmaceuticals	First Lien	Loan	3M USD LIBOR+	3.75	%		0.75	%		4.50	%	3/5/2028		995,000		990,308		990,025
CCS-CMGC Holdings, Inc.	Healthcare & Pharmaceuticals	First Lien	Loan	1M USD LIBOR+	5.50	%		0.00	%		5.59	%	9/25/2025		2,431,250		2,416,385		2,383,233
Cengage Learning, Inc.	Media: Advertising, Printing & Publishing	First Lien	Loan	6M USD LIBOR+	4.75	%		1.00	%		5.75	%	7/14/2026		3,000,000		2,971,926		2,986,500
CENTURI GROUP, INC.	Construction & Building	First Lien	Loan	3M USD LIBOR+	2.50	%		0.50	%		3.00	%	8/18/2028		1,000,000		990,247		992,810
CenturyLink, Inc.	Telecommunications	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.34	%	3/15/2027		3,939,924		3,934,031		3,858,683
Chemours Company, (The)	Chemicals, Plastics, & Rubber	First Lien	Loan	1M USD LIBOR+	1.75	%		0.00	%		1.85	%	4/3/2025		982,058		941,212		961,434
Churchill Downs Incorporated	Hotel, Gaming & Leisure	First Lien	Loan	1M USD LIBOR+	2.00	%		0.00	%		2.09	%	3/17/2028		497,500		496,345		492,316
CIMPRESS PUBLIC LIMITED COMPANY	Media: Advertising, Printing & Publishing	First Lien	Loan	1M USD LIBOR+	3.50	%		0.50	%		4.00	%	5/17/2028		997,500		988,136		995,006
CITADEL SECURITIES LP	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.50	%		0.00	%		2.59	%	2/2/2028		4,975,000		4,969,516		4,921,121
Clarios Global LP	Automotive	First Lien	Loan	1M USD LIBOR+	3.25	%		0.00	%		3.34	%	4/30/2026		1,267,812		1,258,959		1,250,379
Claros Mortgage Trust, Inc	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	5.00	%		1.00	%		6.00	%	8/9/2026		2,974,709		2,954,331		2,967,272
Claros Mortgage Trust, Inc	Banking, Finance, Insurance & Real Estate	First Lien	Loan	3M USD SOFR+	4.00	%		0.00	%		4.50	%	8/9/2026		500,000		497,500		498,750
CNT Holdings I Corp	Retail	First Lien	Loan	6M USD LIBOR+	3.75	%		0.75	%		4.50	%	11/8/2027		497,500		495,379		496,167
Cole Haan	Consumer goods: Non-durable	First Lien	Loan	3M USD LIBOR+	5.50	%		0.00	%		5.68	%	2/7/2025		931,250		925,035		848,993

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
Columbus McKinnon Corporation	Capital Equipment	First Lien	Loan	3M USD LIBOR+	2.75	%		0.50	%		3.25	%	5/14/2028		493,194		492,000		491,039
Compass Power Generation, LLC	Utilities: Electric	First Lien	Loan	1M USD LIBOR+	3.50	%		1.00	%		4.50	%	12/20/2024		1,764,488		1,761,912		1,750,884
Conduent, Inc.	Services: Business	First Lien	Loan	1M USD LIBOR+	4.25	%		0.50	%		4.75	%	10/7/2028		1,000,000		990,106		996,880
Connect Finco SARL	Telecommunications	First Lien	Loan	1M USD LIBOR+	3.50	%		1.00	%		4.50	%	12/11/2026		2,955,000		2,825,374		2,944,835
Consolidated Communications, Inc.	Telecommunications	First Lien	Loan	1M USD LIBOR+	3.50	%		0.75	%		4.25	%	10/2/2027		714,005		704,828		710,135
CORAL-US CO-BORROWER LLC	Telecommunications	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.34	%	1/31/2028		4,000,000		3,986,204		3,921,240
CoreCivic, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	4.50	%		1.00	%		5.50	%	12/18/2024		1,940,909		1,917,886		1,921,500
Corelogic, Inc.	Services: Business	First Lien	Loan	1M USD LIBOR+	3.50	%		0.50	%		4.00	%	6/2/2028		2,500,000		2,487,920		2,468,750
Cortes NP Acquisition Corp (Vertiv)	Capital Equipment	First Lien	Loan	1M USD LIBOR+	2.75	%		0.00	%		2.84	%	3/2/2027		1,985,000		1,985,000		1,966,222
COWEN INC.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	6M USD LIBOR+	3.25	%		0.00	%		4.00	%	3/12/2028		2,977,500		2,963,634		2,955,169
Cross Financial Corp	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%	9/15/2027		498,750		498,185		498,959
Crown Subsea Communications Holding, Inc.	Construction & Building	First Lien	Loan	1M USD LIBOR+	5.00	%		0.75	%		5.75	%	4/27/2027		2,404,110		2,381,714		2,412,115
CSC Holdings LLC (Neptune Finco Corp.)	Media: Broadcasting & Subscription	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.34	%	7/15/2025		1,939,087		1,923,959		1,899,394
CSC Holdings LLC (Neptune Finco Corp.)	Media: Broadcasting & Subscription	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.34	%	1/15/2026		486,250		485,547		475,917
CSC Holdings LLC (Neptune Finco Corp.)	Media: Broadcasting & Subscription	First Lien	Loan	1M USD LIBOR+	2.50	%		0.00	%		2.59	%	4/15/2027		491,250		491,250		481,602
CTS Midco, LLC	High Tech Industries	First Lien	Loan	3M USD LIBOR+	6.00	%		1.00	%		7.00	%	11/2/2027		1,985,000		1,932,807		1,980,038
Daseke Inc	Transportation: Cargo	First Lien	Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%	3/5/2028		1,492,500		1,485,540		1,487,530
DCert Buyer, Inc.	High Tech Industries	First Lien	Loan	1M USD LIBOR+	4.00	%		0.00	%		4.09	%	10/16/2026		1,488,665		1,488,665		1,482,249
Dealer Tire, LLC	Automotive	First Lien	Loan	1M USD LIBOR+	4.25	%		0.00	%		4.34	%	12/12/2025		2,947,500		2,942,290		2,924,156
Delek US Holdings, Inc.	Utilities: Oil & Gas	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.34	%	3/31/2025		6,331,691		6,287,413		6,138,575
Delta 2 (Lux) S.a.r.l.	Hotel, Gaming & Leisure	First Lien	Loan	1M USD LIBOR+	2.50	%		1.00	%		3.50	%	2/1/2024		818,289		817,721		812,356
DexKo Global, Inc. (Dragon Merger)	Automotive	First Lien	Loan	3M USD LIBOR+	3.75	%		0.50	%		4.25	%	9/23/2028		840,000		835,895		831,600
DexKo Global, Inc. (Dragon Merger)(a)	Automotive	First Lien	Loan	1M USD LIBOR+	3.75	%		0.50	%		4.25	%	9/22/2028		-		-		(1,600	)
Diamond Sports Group, LLC	Media: Broadcasting & Subscription	First Lien	Loan	1M USD LIBOR+	3.25	%		0.00	%		3.35	%	8/24/2026		3,417,688		2,951,243		1,428,594
Digital Room LLC	Media: Advertising, Printing & Publishing	First Lien	Loan	1M USD LIBOR+	5.00	%		0.00	%		5.09	%	5/21/2026		2,932,500		2,910,197		2,916,019
DIRECTV FINANCING, LLC	Media: Broadcasting & Subscription	First Lien	Loan	3M USD LIBOR+	5.00	%		0.75	%		5.75	%	7/22/2027		4,000,000		3,961,659		3,990,000
Dispatch Acquisition Holdings, LLC	Environmental Industries	First Lien	Loan	3M USD LIBOR+	4.25	%		0.75	%		5.00	%	3/25/2028		498,750		494,168		496,256
DOMTAR CORPORATION	Forest Products & Paper	First Lien	Loan	3M USD LIBOR+	5.50	%		0.75	%		6.25	%	10/1/2028		677,419		670,645		668,105
Driven Holdings LLC	Retail	First Lien	Loan	3M USD LIBOR+	3.00	%		0.50	%		3.50	%	11/17/2028		2,000,000		1,989,999		1,985,000
DRW Holdings, LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.75	%		0.00	%		3.84	%	3/1/2028		6,500,000		6,452,985		6,483,750
DTZ U.S. Borrower, LLC	Construction & Building	First Lien	Loan	1M USD LIBOR+	2.75	%		0.00	%		2.84	%	8/21/2025		3,885,874		3,874,529		3,852,572
EAB Global, Inc.	Services: Business	First Lien	Loan	3M USD LIBOR+	3.50	%		0.50	%		4.00	%	8/16/2028		1,000,000		995,137		989,500
Echo Global Logistics, Inc.	Services: Business	First Lien	Loan	3M USD LIBOR+	3.75	%		0.50	%		4.25	%	11/3/2028		2,000,000		1,995,009		1,987,500
Edelman Financial Group Inc., The	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.50	%		0.75	%		4.25	%	4/7/2028		2,216,320		2,208,164		2,204,042
Electrical Components Inter., Inc.	Capital Equipment	First Lien	Loan	2M USD LIBOR+	4.25	%		0.00	%		4.35	%	6/26/2025		1,908,930		1,908,930		1,890,432
ELECTRON BIDCO INC.	Healthcare & Pharmaceuticals	First Lien	Loan	3M USD LIBOR+	3.25	%		0.50	%		3.75	%	11/1/2028		500,000		497,507		496,875
ELO Touch Solutions, Inc.	Media: Diversified & Production	First Lien	Loan	1M USD LIBOR+	6.50	%		0.00	%		6.59	%	12/14/2025		2,341,935		2,261,794		2,340,952
Endo Luxembourg Finance Company I S.a.r.l.	Healthcare & Pharmaceuticals	First Lien	Loan	3M USD LIBOR+	5.00	%		0.75	%		5.75	%	3/27/2028		2,353,022		2,343,936		2,284,502
Endure Digital, Inc.	High Tech Industries	First Lien	Loan	6M USD LIBOR+	3.50	%		0.75	%		4.25	%	2/10/2028		2,493,750		2,482,382		2,443,875

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
Ensemble RCM LLC	Services: Business	First Lien	Loan	3M USD LIBOR+	3.75	%		0.00	%		3.88	%	8/3/2026		2,977,215		2,970,750		2,965,515
Enterprise Merger Sub Inc.	Healthcare & Pharmaceuticals	First Lien	Loan	1M USD LIBOR+	3.75	%		0.00	%		3.84	%	10/10/2025		4,862,500		4,856,338		3,654,315
Equiniti Group PLC	Services: Business	First Lien	Loan	3M USD LIBOR+	4.50	%		0.50	%		5.00	%	10/30/2028		1,000,000		990,000		1,000,630
EyeCare Partners, LLC	Healthcare & Pharmaceuticals	First Lien	Loan	3M USD LIBOR+	3.75	%		0.00	%		3.88	%	2/18/2027		1,972,929		1,972,489		1,946,788
Finco I LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.50	%		0.00	%		2.59	%	6/27/2025		2,801,051		2,796,509		2,784,945
First Brands Group, LLC	Automotive	First Lien	Loan	3M USD LIBOR+	5.00	%		1.00	%		6.00	%	3/30/2027		8,955,000		8,840,384		9,010,969
First Eagle Investment Management	Banking, Finance, Insurance & Real Estate	First Lien	Loan	3M USD LIBOR+	2.50	%		0.00	%		2.63	%	2/1/2027		5,214,262		5,197,429		5,128,070
First Student Bidco Inc.	Transportation: Consumer	First Lien	Loan	3M USD LIBOR+	3.00	%		0.50	%		3.50	%	7/14/2028		730,392		725,290		722,862
First Student Bidco Inc.	Transportation: Consumer	First Lien	Loan	3M USD LIBOR+	3.00	%		0.50	%		3.50	%	7/14/2028		269,608		267,725		266,828
Fitness International, LLC (LA Fitness)	Services: Consumer	First Lien	Loan	3M USD LIBOR+	3.25	%		1.00	%		4.25	%	4/18/2025		1,330,058		1,325,167		1,230,969
FOCUS FINANCIAL PARTNERS, LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.00	%		0.00	%		2.09	%	7/3/2024		496,154		495,700		490,389
Franchise Group, Inc.	Services: Consumer	First Lien	Loan	3M USD LIBOR+	4.75	%		0.75	%		5.50	%	3/10/2026		815,445		808,244		812,730
Franklin Square Holdings, L.P.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.38	%	8/1/2025		4,364,988		4,344,680		4,310,425
Froneri International (R&R Ice Cream)	Beverage, Food & Tobacco	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.34	%	1/29/2027		1,975,000		1,971,377		1,929,496
Garrett LX III S.a r.l.	Automotive	First Lien	Loan	3M USD LIBOR+	3.25	%		0.50	%		3.75	%	4/28/2028		1,500,000		1,493,036		1,477,500
Gemini HDPE LLC	Chemicals, Plastics, & Rubber	First Lien	Loan	3M USD LIBOR+	3.00	%		0.50	%		3.50	%	12/31/2027		2,417,797		2,400,444		2,402,686
General Nutrition Centers, Inc.	Retail	Second Lien	Loan	1M USD LIBOR+	6.00	%		0.00	%		6.20	%	10/7/2026		362,697		362,697		338,668
Genesee & Wyoming, Inc.	Transportation: Cargo	First Lien	Loan	3M USD LIBOR+	2.00	%		0.00	%		2.13	%	12/30/2026		1,477,500		1,472,116		1,463,094
GEO Group, Inc., The	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.00	%		0.75	%		2.75	%	3/22/2024		3,933,082		3,704,664		3,671,375
GGP Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.50	%		0.00	%		2.59	%	8/27/2025		3,858,181		3,227,642		3,792,284
GI Chill Acquisition LLC	Services: Business	First Lien	Loan	3M USD LIBOR+	3.75	%		0.00	%		3.88	%	8/1/2025		3,917,308		3,896,830		3,897,721
Gigamon Inc.	Services: Business	First Lien	Loan	6M USD LIBOR+	3.75	%		0.75	%		4.50	%	12/27/2024		2,908,071		2,893,975		2,900,801
Global Business Travel (GBT) III Inc.	Hotel, Gaming & Leisure	First Lien	Loan	1M USD LIBOR+	2.50	%		0.00	%		2.59	%	8/13/2025		4,365,000		4,364,317		3,881,227
Global Tel*Link Corporation	Telecommunications	First Lien	Loan	1M USD LIBOR+	4.25	%		0.00	%		4.34	%	11/29/2025		4,938,649		4,737,507		4,732,609
Go Daddy Operating Company, LLC	High Tech Industries	First Lien	Loan	1M USD LIBOR+	2.00	%		0.00	%		2.09	%	8/10/2027		1,984,925		1,984,925		1,960,113
Go Wireless Holdings, Inc.	Telecommunications	First Lien	Loan	1M USD LIBOR+	6.50	%		1.00	%		7.50	%	12/22/2024		2,891,234		2,865,921		2,888,343
GOLDEN WEST PACKAGING GROUP LLC	Forest Products & Paper	First Lien	Loan	3M USD LIBOR+	5.25	%		0.75	%		6.00	%	11/23/2027		2,000,000		1,980,000		1,980,000
Goodyear Tire & Rubber Company, The	Chemicals, Plastics, & Rubber	Second Lien	Loan	1M USD LIBOR+	2.00	%		0.00	%		2.09	%	3/3/2025		3,000,000		2,945,334		2,943,750
Graham Packaging Co Inc	Containers, Packaging & Glass	First Lien	Loan	1M USD LIBOR+	3.00	%		0.75	%		3.75	%	8/7/2027		974,763		968,707		966,506
Great Outdoors Group, LLC	Retail	First Lien	Loan	1M USD LIBOR+	3.75	%		0.75	%		4.50	%	3/6/2028		992,500		987,793		991,259
Greenhill & Co., Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.25	%		0.00	%		3.34	%	4/12/2024		2,948,846		2,931,243		2,941,474
Grosvenor Capital Management Holdings, LLLP	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.50	%		0.50	%		3.00	%	2/24/2028		3,880,491		3,876,926		3,848,982
Harbor Freight Tools USA, Inc.	Retail	First Lien	Loan	1M USD LIBOR+	2.75	%		0.50	%		3.25	%	10/19/2027		3,482,412		3,460,069		3,448,911
Harland Clarke Holdings Corp.	Media: Advertising, Printing & Publishing	First Lien	Loan	3M USD LIBOR+	7.75	%		1.00	%		8.75	%	6/16/2026		1,262,555		1,260,166		1,156,362

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
Helix Gen Funding, LLc	Energy: Electricity	First Lien	Loan	1M USD LIBOR+	3.75	%		1.00	%		4.75	%	6/3/2024		228,806		228,663			221,560
Hillman Group Inc. (The) (New)	Consumer goods: Durable	First Lien	Loan	1M USD LIBOR+	2.75	%		0.50	%		3.25	%	7/14/2028		4,156,118		4,146,090			4,124,947
Hillman Group Inc. (The) (New)(a)	Consumer goods: Durable	First Lien	Loan	1M USD LIBOR+	2.75	%		0.50	%		3.25	%	7/14/2028		67,511		67,511			61,181
HLF Financing SARL (Herbalife)	Consumer goods: Non-durable	First Lien	Loan	1M USD LIBOR+	2.50	%		0.00	%		2.59	%	8/18/2025		3,560,000		3,550,679			3,533,300
Holley Purchaser, Inc	Automotive	First Lien	Loan	3M USD LIBOR+	3.75	%		0.75	%		4.50	%	11/10/2028		2,142,857		2,132,143			2,130,814
Holley Purchaser, Inc(a)	Automotive	First Lien	Loan	N/A	3.75	%		0.75	%		0.00	%	11/10/2028		-		(1,786	)		(2,007	)
Howden Group Holdings	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.25	%		0.75	%		4.00	%	11/12/2027		2,179,642		2,169,229			2,159,219
Hudson River Trading LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.00	%		0.00	%		3.09	%	3/17/2028		5,970,000		5,915,095			5,907,315
Idera, Inc.	High Tech Industries	First Lien	Loan	6M USD LIBOR+	3.75	%		0.75	%		4.50	%	3/2/2028		4,872,321		4,860,282			4,846,741
IMA Financial Group, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.75	%		0.50	%		4.25	%	11/1/2028		2,000,000		1,990,101			1,983,340
INDY US BIDCO, LLC	Services: Business	First Lien	Loan	3M USD LIBOR+	3.75	%		0.00	%		3.88	%	3/6/2028		2,243,750		2,243,594			2,235,336
INEOS US PETROCHEM LLC	Chemicals, Plastics, & Rubber	First Lien	Loan	1M USD LIBOR+	2.75	%		0.50	%		3.25	%	1/29/2026		997,500		993,380			994,069
INFINITE BIDCO LLC	Wholesale	First Lien	Loan	1M USD LIBOR+	3.75	%		0.50	%		4.25	%	3/2/2028		1,496,250		1,492,735			1,487,841
Informatica Inc.	High Tech Industries	First Lien	Loan	1M USD LIBOR+	2.75	%		0.00	%		2.88	%	10/13/2028		500,000		499,387			496,430
Ingram Micro Inc.	High Tech Industries	First Lien	Loan	3M USD LIBOR+	3.50	%		0.50	%		4.00	%	6/30/2028		1,496,250		1,481,788			1,492,509
Inmar Acquisition Sub, Inc.	Services: Business	First Lien	Loan	3M USD LIBOR+	4.00	%		1.00	%		5.00	%	5/1/2024		3,394,994		3,347,450			3,380,259
Innophos, Inc.	Chemicals, Plastics, & Rubber	First Lien	Loan	1M USD LIBOR+	3.75	%		0.00	%		3.84	%	2/4/2027		492,500		490,618			490,038
INSTANT BRANDS HOLDINGS INC.	Consumer goods: Durable	First Lien	Loan	2M USD LIBOR+	5.00	%		0.75	%		5.75	%	4/7/2028		4,453,125		4,430,154			4,330,664
INSTRUCTURE HOLDINGS, INC.	High Tech Industries	First Lien	Loan	1M USD LIBOR+	2.75	%		0.50	%		3.25	%	10/21/2028		500,000		498,754			496,250
Isagenix International, LLC	Beverage, Food & Tobacco	First Lien	Loan	3M USD LIBOR+	5.75	%		1.00	%		6.75	%	6/14/2025		2,476,309		2,447,851			1,842,374
Ivory Merger Sub, Inc.	Healthcare & Pharmaceuticals	First Lien	Loan	1M USD LIBOR+	3.50	%		0.00	%		3.59	%	3/14/2025		2,949,539		2,929,959			2,871,376
J Jill Group, Inc	Retail	First Lien	Loan	3M USD LIBOR+	5.00	%		1.00	%		6.00	%	5/8/2024		1,574,907		1,573,417			1,354,420
Jane Street Group	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.75	%		0.00	%		2.84	%	1/31/2028		3,970,000		3,964,061			3,919,383
Journey Personal Care Corp.	Consumer goods: Non-durable	First Lien	Loan	3M USD LIBOR+	4.25	%		0.75	%		5.00	%	3/1/2028		997,500		992,818			990,847
JP Intermediate B, LLC	Consumer goods: Non-durable	First Lien	Loan	3M USD LIBOR+	5.50	%		1.00	%		6.50	%	11/15/2025		4,221,483		4,190,800			3,904,872
KAR Auction Services, Inc.	Automotive	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.38	%	9/19/2026		245,000		244,580			236,425
Kindred Healthcare, Inc.	Healthcare & Pharmaceuticals	First Lien	Loan	1M USD LIBOR+	4.50	%		0.00	%		4.63	%	7/2/2025		1,969,848		1,955,691			1,964,923
Klockner-Pentaplast of America, Inc.	Containers, Packaging & Glass	First Lien	Loan	3M USD LIBOR+	4.75	%		0.50	%		5.25	%	2/12/2026		1,492,500		1,485,674			1,441,203
Kodiak BP, LLC	Construction & Building	First Lien	Loan	3M USD LIBOR+	3.25	%		0.75	%		4.00	%	3/13/2028		497,500		495,179			493,560
Kraton Corporation	Chemicals, Plastics, & Rubber	First Lien	Loan	3M USD LIBOR+	3.25	%		0.50	%		3.75	%	11/18/2028		1,000,000		995,000			991,250
KREF Holdings X LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	3M USD LIBOR+	3.50	%		0.19	%		3.69	%	9/1/2027		496,250		485,707			496,250
Lakeland Tours, LLC	Hotel, Gaming & Leisure	First Lien	Loan	3M USD LIBOR+	6.00	%		1.25	%		7.25	%	9/25/2023		296,004		283,778			298,040
Lakeland Tours, LLC	Hotel, Gaming & Leisure	First Lien	Loan	3M USD LIBOR+	1.50	%		1.25	%		2.75	%	9/25/2025		608,379		514,931			589,823
Lakeland Tours, LLC	Hotel, Gaming & Leisure	First Lien	Loan	3M USD LIBOR+	1.50	%		1.25	%		2.75	%	9/25/2025		807,639		516,441			711,933
Lakeland Tours, LLC	Hotel, Gaming & Leisure	First Lien	Loan	Fixed	0.00	%		0.00	%		13.25	%	9/27/2027		869,977		226,526			579,622
Lealand Finance Company B.V.	Energy: Oil & Gas	First Lien	Loan	1M USD LIBOR+	1.00	%		0.00	%		1.09	%	6/30/2025		332,254		332,254			142,663
Learfield Communications, Inc	Media: Advertising, Printing & Publishing	First Lien	Loan	1M USD LIBOR+	3.25	%		1.00	%		4.25	%	12/1/2023		476,250		475,501			447,346
LIAISON ACQUISITION, LLC	High Tech Industries	First Lien	Loan	6M USD LIBOR+	3.75	%		0.75	%		4.50	%	3/4/2028		992,500		990,301			991,259
Lifetime Brands, Inc	Consumer goods: Non-durable	First Lien	Loan	1M USD LIBOR+	3.50	%		1.00	%		4.50	%	2/28/2025		2,694,077		2,671,048			2,673,871
Lightstone Generation LLC	Energy: Electricity	First Lien	Loan	3M USD LIBOR+	3.75	%		1.00	%		4.75	%	1/30/2024		1,322,520		1,321,483			1,141,335
Lightstone Generation LLC	Energy: Electricity	First Lien	Loan	3M USD LIBOR+	3.75	%		1.00	%		4.75	%	1/30/2024		74,592		74,536			64,373
Lindblad Expeditions, Inc.	Hotel, Gaming & Leisure	First Lien	Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%	3/21/2025		393,542		393,066			373,865
Lindblad Expeditions, Inc.	Hotel, Gaming & Leisure	First Lien	Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%	3/21/2025		98,386		98,267			93,466
Liquid Tech Solutions Holdings, LLC	Services: Business	First Lien	Loan	3M USD LIBOR+	4.75	%		0.00	%		5.50	%	3/17/2028		997,500		992,953			992,513
LogMeIn, Inc.	High Tech Industries	First Lien	Loan	1M USD LIBOR+	4.75	%		0.00	%		4.84	%	8/31/2027		3,970,000		3,904,859			3,942,726
LOYALTY VENTURES INC.	Services: Business	First Lien	Loan	1M USD LIBOR+	4.50	%		0.50	%		5.00	%	11/3/2027		1,000,000		980,000			990,830
LPL Holdings, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	1.75	%		0.00	%		1.84	%	11/11/2026		1,223,421		1,221,254			1,212,411
LSF11 A5 HOLDCO LLC	Chemicals, Plastics, & Rubber	First Lien	Loan	3M USD LIBOR+	3.75	%		0.50	%		4.25	%	10/16/2028		250,000		248,773			248,393
MA FinanceCo LLC	High Tech Industries	First Lien	Loan	3M USD LIBOR+	4.25	%		1.00	%		5.25	%	6/5/2025		2,427,968		2,421,037			2,453,267
MAGNITE, INC.	Services: Business	First Lien	Loan	6M USD LIBOR+	5.00	%		0.75	%		5.75	%	4/28/2028		1,995,000		1,938,927			1,982,531
Marriott Ownership Resorts, Inc.	Hotel, Gaming & Leisure	First Lien	Loan	1M USD LIBOR+	1.75	%		0.00	%		1.84	%	8/29/2025		1,317,074		1,317,074			1,286,781
Match Group, Inc, The	Services: Consumer	First Lien	Loan	3M USD LIBOR+	1.75	%		0.00	%		1.91	%	2/15/2027		250,000		249,542			245,208

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
Mayfield Agency Borrower Inc. (FeeCo)	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	4.50	%		0.00	%		4.59	%	2/28/2025		3,400,857		3,376,272		3,386,676
McAfee, LLC	Services: Business	First Lien	Loan	1M USD LIBOR+	3.75	%		0.00	%		3.84	%	9/30/2024		1,647,800		1,643,176		1,645,625
McGraw-Hill Education, Inc.	Media: Advertising, Printing & Publishing	First Lien	Loan	1M USD LIBOR+	4.75	%		0.50	%		5.25	%	7/20/2028		2,000,000		1,980,550		1,973,500
MedAssets Software Inter Hldg, Inc.	High Tech Industries	First Lien	Loan	3M USD LIBOR+	4.00	%		0.50	%		4.50	%	11/17/2028		1,500,000		1,492,500		1,488,750
Meredith Corporation	Media: Advertising, Printing & Publishing	First Lien	Loan	Prime+	1.50	%		0.00	%		4.75	%	1/31/2025		578,738		578,102		577,615
Mermaid Bidco Inc.	High Tech Industries	First Lien	Loan	3M USD LIBOR+	3.75	%		0.75	%		4.50	%	12/12/2027		996,253		992,915		988,781
Messer Industries, LLC	Chemicals, Plastics, & Rubber	First Lien	Loan	3M USD LIBOR+	2.50	%		0.00	%		2.63	%	3/1/2026		3,391,515		3,375,615		3,348,273
MH SUB I, LLC	High Tech Industries	First Lien	Loan	1M USD LIBOR+	3.75	%		1.00	%		4.75	%	9/13/2024		500,000		498,750		497,625
Michaels Companies Inc	Retail	First Lien	Loan	3M USD LIBOR+	4.25	%		0.75	%		5.00	%	4/8/2028		1,496,250		1,482,283		1,484,654
Milk Specialties Company	Beverage, Food & Tobacco	First Lien	Loan	3M USD LIBOR+	4.00	%		1.00	%		5.00	%	8/23/2025		3,811,112		3,781,621		3,802,765
MKS Instruments, Inc.	High Tech Industries	First Lien	Loan	1M USD LIBOR+	1.75	%		0.00	%		1.84	%	2/2/2026		870,891		865,354		870,569
MKS Instruments, Inc.	High Tech Industries	First Lien	Loan	3M USD LIBOR+	2.25	%		0.50	%		2.75	%	10/21/2028		1,000,000		997,500		995,630
MLN US Holdco LLC	Telecommunications	First Lien	Loan	1M USD LIBOR+	4.50	%		0.00	%		4.59	%	12/1/2025		793,929		793,062		760,187
MRC Global Inc.	Metals & Mining	First Lien	Loan	1M USD LIBOR+	3.00	%		0.00	%		3.09	%	9/20/2024		351,484		351,078		348,848
MW Industries, Inc. (Helix Acquisition Holdings)	Capital Equipment	First Lien	Loan	3M USD LIBOR+	3.75	%		0.00	%		3.88	%	9/30/2024		2,842,097		2,810,092		2,780,509
NAB Holdings, LLC (North American Bancard)	Banking, Finance, Insurance & Real Estate	First Lien	Loan	3M USD SOFR+	3.00	%		0.00	%		3.50	%	11/17/2028		3,000,000		2,992,500		2,976,240
Natgasoline LLC	Chemicals, Plastics, & Rubber	First Lien	Loan	1M USD LIBOR+	3.50	%		0.00	%		3.63	%	11/14/2025		1,476,072		1,450,744		1,461,311
National Mentor Holdings, Inc.	Healthcare & Pharmaceuticals	First Lien	Loan	3M USD LIBOR+	3.75	%		0.75	%		4.50	%	3/2/2028		2,770,496		2,758,386		2,733,897
National Mentor Holdings, Inc.	Healthcare & Pharmaceuticals	First Lien	Loan	3M USD LIBOR+	3.75	%		0.75	%		4.50	%	3/2/2028		87,464		87,061		86,308
National Mentor Holdings, Inc.(a)	Healthcare & Pharmaceuticals	First Lien	Loan	N/A	3.75	%		0.75	%		3.75	%	3/2/2028		-		-		(1,703	)
Neenah, Inc.	Forest Products & Paper	First Lien	Loan	3M USD LIBOR+	3.00	%		0.50	%		3.50	%	4/6/2028		1,995,000		1,985,635		1,992,506
NeuStar, Inc.	Telecommunications	First Lien	Loan	Prime+	2.50	%		1.00	%		5.75	%	8/8/2024		2,641,566		2,617,462		2,640,113
NeuStar, Inc.	Telecommunications	First Lien	Loan	Prime+	3.50	%		1.00	%		6.75	%	8/8/2024		885,162		875,613		884,720
Nexstar Broadcasting, Inc. (Mission Broadcasting)	Media: Broadcasting & Subscription	First Lien	Loan	1M USD LIBOR+	2.50	%		0.00	%		2.59	%	9/18/2026		1,113,795		1,102,709		1,105,241
Next Level Apparel, Inc.	Retail	First Lien	Loan	3M USD WIBOR+	5.50	%		1.00	%		6.50	%	8/9/2024		1,737,840		1,728,558		1,659,638
NM Z Parent Inc (Zep Inc)	Chemicals, Plastics, & Rubber	First Lien	Loan	12M USD LIBOR+	4.00	%		1.00	%		5.00	%	8/9/2024		877,273		875,285		863,236
NorthPole Newco S.a.r.l	Aerospace & Defense	First Lien	Loan	3M USD LIBOR+	7.00	%		0.00	%		7.13	%	3/3/2025		5,094,178		4,751,773		2,547,089
Novolex Holdings, Inc (Flex Acquisition)	Containers, Packaging & Glass	First Lien	Loan	3M USD LIBOR+	3.50	%		0.50	%		4.00	%	3/2/2028		995,000		990,478		986,453
Nuvei Technologies Corp.	High Tech Industries	First Lien	Loan	1M USD LIBOR+	2.50	%		0.50	%		3.00	%	9/29/2025		2,244,375		2,239,430		2,230,348
Organon & Co.	Healthcare & Pharmaceuticals	First Lien	Loan	6M USD LIBOR+	3.00	%		0.50	%		3.50	%	6/2/2028		2,493,750		2,481,971		2,484,398
Pacific Gas and Electric Company	Utilities: Electric	First Lien	Loan	3M USD LIBOR+	3.00	%		0.50	%		3.50	%	6/18/2025		1,483,725		1,477,419		1,464,718
PACTIV EVERGREEN GROUP HOLDINGS INC.	Containers, Packaging & Glass	First Lien	Loan	1M USD LIBOR+	3.50	%		0.50	%		4.00	%	9/20/2028		1,000,000		995,114		993,750
Padagis LLC	Healthcare & Pharmaceuticals	First Lien	Loan	3M USD LIBOR+	4.75	%		0.50	%		5.25	%	6/29/2028		941,176		932,100		938,824
PAE Holding Corp	Aerospace & Defense	First Lien	Loan	3M USD LIBOR+	4.50	%		0.75	%		5.25	%	10/14/2027		1,985,000		1,959,195		1,982,519
Panther Guarantor II, L.P. (Forcepoint)	High Tech Industries	First Lien	Loan	3M USD LIBOR+	4.50	%		0.50	%		5.00	%	1/7/2028		498,750		495,438		498,595
Pathway Partners Vet Management Company LLC	Services: Business	First Lien	Loan	1M USD LIBOR+	3.75	%		0.00	%		3.84	%	3/30/2027		492,714		483,415		489,285
PCI Gaming Authority	Hotel, Gaming & Leisure	First Lien	Loan	1M USD LIBOR+	2.50	%		0.00	%		2.59	%	5/29/2026		855,192		852,192		847,068
PECF USS INTERMEDIATE HOLDING III CORPORATION	Environmental Industries	First Lien	Loan	3M USD LIBOR+	4.25	%		0.50	%		4.75	%	11/4/2028		100,000		99,750		99,563
Penn National Gaming	Hotel, Gaming & Leisure	First Lien	Loan	1M USD LIBOR+	2.25	%		0.75	%		3.00	%	10/15/2025		1,767,751		1,716,963		1,759,584
Peraton Corp.	Aerospace & Defense	First Lien	Loan	1M USD LIBOR+	3.75	%		0.75	%		4.50	%	2/1/2028		5,473,747		5,451,090		5,454,206
Ping Identity Corporation	High Tech Industries	First Lien	Loan	3M USD SOFR+	4.25	%		0.00	%		4.75	%	11/18/2028		1,000,000		994,999		997,500
Pitney Bowes Inc	Services: Business	First Lien	Loan	1M USD LIBOR+	4.00	%		0.00	%		4.10	%	3/17/2028		2,985,000		2,967,666		2,982,194
Pixelle Specialty Solutions LLC	Forest Products & Paper	First Lien	Loan	1M USD LIBOR+	6.50	%		1.00	%		7.50	%	10/31/2024		3,535,026		3,514,650		3,513,569
Plastipak Holdings Inc.	Containers, Packaging & Glass	First Lien	Loan	Prime+	1.50	%		0.00	%		4.75	%	10/14/2024		2,789,599		2,775,303		2,775,651
Plastipak Holdings Inc.	Containers, Packaging & Glass	First Lien	Loan	3M USD LIBOR+	2.50	%		0.50	%		3.00	%	11/17/2028		2,000,000		1,989,999		1,990,000
Playtika Holding Corp.	High Tech Industries	First Lien	Loan	1M USD LIBOR+	2.75	%		0.00	%		2.84	%	3/13/2028		4,477,500		4,468,175		4,442,978
PointClickCare Technologies, Inc.	High Tech Industries	First Lien	Loan	3M USD LIBOR+	3.00	%		0.75	%		3.75	%	12/29/2027		497,500		495,318		495,013
Polymer Process Holdings, Inc.	Containers, Packaging & Glass	First Lien	Loan	1M USD LIBOR+	4.75	%		0.75	%		5.50	%	2/12/2028		5,472,500		5,415,442		5,363,050
PPD, Inc.	Healthcare & Pharmaceuticals	First Lien	Loan	1M USD LIBOR+	2.00	%		0.50	%		2.50	%	1/13/2028		497,500		495,316		496,102

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
Pre-Paid Legal Services, Inc.	Services: Consumer	First Lien	Loan	1M USD LIBOR+	3.25	%		0.00	%		3.34	%	5/1/2025		2,000,000		2,003,988		1,991,660
Pre-Paid Legal Services, Inc.	Services: Consumer	First Lien	Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%	5/1/2025		990,000		978,558		987,525
Presidio, Inc.	Services: Business	First Lien	Loan	1M USD LIBOR+	3.50	%		0.00	%		3.60	%	1/22/2027		493,750		492,891		491,281
Prime Security Services Borrower, LLC (ADT)	Services: Consumer	First Lien	Loan	6M USD LIBOR+	2.75	%		0.75	%		3.50	%	9/23/2026		3,565,258		3,559,558		3,545,435
PRIORITY HOLDINGS, LLC	Services: Consumer	First Lien	Loan	1M USD LIBOR+	5.75	%		1.00	%		6.75	%	4/27/2027		2,992,500		2,963,588		2,977,538
PriSo Acquisition Corporation	Construction & Building	First Lien	Loan	3M USD LIBOR+	3.25	%		0.75	%		4.00	%	12/28/2027		497,499		495,905		492,678
Project Leopard Holdings Inc	High Tech Industries	First Lien	Loan	6M USD LIBOR+	4.75	%		1.00	%		5.75	%	7/5/2024		496,250		495,328		496,518
Prometric Inc. (Sarbacane Bidco)	Services: Consumer	First Lien	Loan	1M USD LIBOR+	3.00	%		1.00	%		4.00	%	1/29/2025		482,625		481,445		477,799
PUG LLC	Services: Consumer	First Lien	Loan	1M USD LIBOR+	3.50	%		0.00	%		3.59	%	2/12/2027		486,313		484,423		476,990
Rackspace Technology Global, Inc.	High Tech Industries	First Lien	Loan	3M USD LIBOR+	2.75	%		0.75	%		3.50	%	2/15/2028		497,500		495,296		489,983
RealPage, Inc.	High Tech Industries	First Lien	Loan	1M USD LIBOR+	3.25	%		0.50	%		3.75	%	4/24/2028		1,000,000		997,688		989,750
Renaissance Learning, Inc.	Services: Consumer	First Lien	Loan	1M USD LIBOR+	3.25	%		0.00	%		3.34	%	5/30/2025		2,976,833		2,952,101		2,939,623
Rent-A-Center, Inc.	Retail	First Lien	Loan	1M USD LIBOR+	3.25	%		0.50	%		3.75	%	2/17/2028		996,247		994,051		984,621
Research Now Group, Inc	Media: Advertising, Printing & Publishing	First Lien	Loan	6M USD LIBOR+	5.50	%		1.00	%		6.50	%	12/20/2024		4,354,689		4,272,433		4,284,840
Resideo Funding Inc.	Services: Consumer	First Lien	Loan	2M USD LIBOR+	2.25	%		0.50	%		2.75	%	2/11/2028		1,492,500		1,489,838		1,488,769
Resolute Investment Managers (American Beacon), Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	3M USD LIBOR+	4.25	%		1.00	%		5.25	%	4/30/2024		3,096,224		3,088,865		3,080,743
Restoration Hardware, Inc.	Retail	First Lien	Loan	1M USD LIBOR+	2.50	%		0.50	%		3.00	%	10/13/2028		1,000,000		995,000		993,330
Rexnord LLC	Capital Equipment	First Lien	Loan	1M USD LIBOR+	2.25	%		0.50	%		2.75	%	9/21/2028		250,000		249,387		249,220
Reynolds Consumer Products LLC	Containers, Packaging & Glass	First Lien	Loan	1M USD LIBOR+	1.75	%		0.00	%		1.84	%	1/29/2027		1,295,682		1,294,564		1,286,703
Reynolds Group Holdings Inc.	Metals & Mining	First Lien	Loan	1M USD LIBOR+	3.25	%		0.00	%		3.34	%	2/5/2026		3,473,750		3,456,954		3,436,616
Robertshaw US Holding Corp.	Consumer goods: Durable	First Lien	Loan	3M USD LIBOR+	3.50	%		1.00	%		4.50	%	2/28/2025		965,000		963,772		912,533
Rocket Software, Inc.	High Tech Industries	First Lien	Loan	1M USD LIBOR+	4.25	%		0.00	%		4.34	%	11/28/2025		2,912,658		2,904,525		2,884,056
Russell Investments US Inst’l Holdco, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	6M USD LIBOR+	3.50	%		1.00	%		4.50	%	6/2/2025		5,637,965		5,598,560		5,626,238
RV Retailer LLC	Automotive	First Lien	Loan	3M USD LIBOR+	4.00	%		0.75	%		4.75	%	2/8/2028		1,990,000		1,972,198		1,978,816
Ryan Specialty Group LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.00	%		0.75	%		3.75	%	9/1/2027		495,000		488,798		492,733
S&S HOLDINGS LLC	Services: Business	First Lien	Loan	1M USD LIBOR+	5.00	%		0.50	%		5.50	%	3/10/2028		2,490,000		2,431,160		2,480,663
Sally Holdings LLC	Retail	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.35	%	7/5/2024		750,909		749,228		744,339
Samsonite International S.A.	Consumer goods: Non-durable	First Lien	Loan	1M USD LIBOR+	3.00	%		0.75	%		3.75	%	4/25/2025		990,019		968,457		980,119
Schweitzer-Mauduit International, Inc.	High Tech Industries	First Lien	Loan	1M USD LIBOR+	3.75	%		0.75	%		4.50	%	4/20/2028		2,992,500		2,976,144		2,960,091
SETANTA AIRCRAFT LEASING DAC	Aerospace & Defense	First Lien	Loan	3M USD LIBOR+	2.00	%		0.00	%		2.14	%	11/2/2028		1,000,000		997,527		997,920
Signify Health, LLC	Healthcare & Pharmaceuticals	First Lien	Loan	3M USD LIBOR+	3.25	%		0.50	%		3.75	%	6/16/2028		500,000		497,608		496,565
Sirius Computer Solutions, Inc.	High Tech Industries	First Lien	Loan	Prime+	2.50	%		0.00	%		5.75	%	7/1/2026		1,224,508		1,222,611		1,222,721
Sitel Worldwide Corporation	Services: Business	First Lien	Loan	1M USD LIBOR+	3.75	%		0.50	%		4.25	%	8/28/2028		2,000,000		1,990,311		1,991,000
SiteOne Landscape Supply, LLC	Services: Business	First Lien	Loan	3M USD LIBOR+	2.00	%		0.50	%		2.50	%	3/18/2028		995,000		992,670		990,025
SMG US Midco 2, Inc.	Services: Business	First Lien	Loan	3M USD LIBOR+	2.50	%		0.00	%		2.63	%	1/23/2025		491,250		491,250		475,898
Sotheby’s	Services: Business	First Lien	Loan	3M USD LIBOR+	4.50	%		0.50	%		5.00	%	1/15/2027		3,264,654		3,212,837		3,261,944
Sparta U.S. HoldCo LLC	Chemicals, Plastics, & Rubber	First Lien	Loan	3M USD LIBOR+	3.50	%		0.75	%		4.25	%	8/2/2028		2,000,000		1,990,405		1,998,120
Specialty Pharma III Inc.	Services: Business	First Lien	Loan	1M USD LIBOR+	4.50	%		0.75	%		5.25	%	3/31/2028		2,000,000		1,981,481		1,995,000
Spectrum Brands, Inc.	Consumer goods: Durable	First Lien	Loan	6M USD LIBOR+	2.00	%		0.50	%		2.50	%	3/3/2028		497,500		496,351		495,013
Spin Holdco, Inc.	Services: Consumer	First Lien	Loan	3M USD LIBOR+	4.00	%		0.75	%		4.75	%	3/4/2028		2,985,000		2,968,832		2,981,269
SRAM, LLC	Consumer goods: Durable	First Lien	Loan	3M USD LIBOR+	2.75	%		0.50	%		3.25	%	5/12/2028		3,709,091		3,703,039		3,685,909
SS&C Technologies, Inc.	Services: Business	First Lien	Loan	1M USD LIBOR+	1.75	%		0.00	%		1.84	%	4/16/2025		190,170		189,926		187,348
SS&C Technologies, Inc.	Services: Business	First Lien	Loan	1M USD LIBOR+	1.75	%		0.00	%		1.84	%	4/16/2025		154,375		154,180		152,084
SS&C Technologies, Inc.	Services: Business	First Lien	Loan	1M USD LIBOR+	1.75	%		0.00	%		1.84	%	4/16/2025		477,615		476,951		471,158
STANDARD INDUSTRIES INC.	Construction & Building	First Lien	Loan	3M USD LIBOR+	2.50	%		0.50	%		3.00	%	9/22/2028		1,000,000		990,162		996,610
Staples, Inc.	Wholesale	First Lien	Loan	3M USD LIBOR+	5.00	%		0.00	%		5.13	%	4/16/2026		4,397,738		4,270,698		4,213,605
Stars Group Inc. (The)	Hotel, Gaming & Leisure	First Lien	Loan	3M USD LIBOR+	2.25	%		0.00	%		2.38	%	7/21/2026		2,000,000		1,995,488		1,983,340
Storable, Inc	High Tech Industries	First Lien	Loan	6M USD LIBOR+	3.25	%		0.50	%		3.75	%	4/17/2028		500,000		498,847		495,000
Superannuation & Investments US LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	3M USD LIBOR+	3.75	%		0.50	%		4.25	%	11/1/2028		1,000,000		990,000		993,750
Sylvamo Corporation	Forest Products & Paper	First Lien	Loan	1M USD LIBOR+	4.50	%		0.50	%		5.00	%	8/18/2028		1,146,667		1,135,433		1,145,233
Syncsort Incorporated	High Tech Industries	First Lien	Loan	3M USD LIBOR+	4.00	%		0.75	%		4.75	%	4/24/2028		2,000,000		2,000,000		1,994,640
Tenable Holdings, Inc.	Services: Business	First Lien	Loan	6M USD LIBOR+	2.75	%		0.50	%		3.25	%	6/30/2028		1,000,000		997,555		995,000
Teneo Holdings LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	5.25	%		1.00	%		6.25	%	7/15/2025		4,439,848		4,361,672		4,424,308

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
Tenneco Inc	Capital Equipment	First Lien	Loan	1M USD LIBOR+	3.00	%		0.00	%		3.09	%	10/1/2025		1,458,750		1,450,390		1,430,304
Ten-X, LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	4.00	%		1.00	%		5.00	%	9/27/2024		1,925,000		1,923,469		1,889,638
The Octave Music Group, Inc (Touchtunes)	Services: Business	First Lien	Loan	1M USD LIBOR+	5.25	%		1.00	%		6.25	%	5/29/2025		3,259,191		3,233,813		3,242,895
Thor Industries, Inc.	Automotive	First Lien	Loan	1M USD LIBOR+	3.00	%		0.00	%		3.13	%	2/1/2026		2,935,080		2,882,657		2,932,145
Tosca Services, LLC	Containers, Packaging & Glass	First Lien	Loan	1M USD LIBOR+	3.50	%		0.75	%		4.25	%	8/18/2027		496,250		490,069		495,942
Trans Union LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	3M USD LIBOR+	2.25	%		0.50	%		2.75	%	11/16/2028		1,000,000		997,499		993,130
Transdigm, Inc.	Aerospace & Defense	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.34	%	8/22/2024		4,034,433		4,037,080		3,965,767
Travel Leaders Group, LLC	Hotel, Gaming & Leisure	First Lien	Loan	1M USD LIBOR+	4.00	%		0.00	%		4.09	%	1/25/2024		2,418,750		2,417,280		2,255,484
TRC Companies, Inc.	Services: Business	First Lien	Loan	1M USD LIBOR+	3.50	%		1.00	%		4.50	%	6/21/2024		3,315,141		3,308,930		3,301,681
TRC Companies, Inc.	Services: Business	First Lien	Loan	1M USD LIBOR+	4.50	%		0.75	%		5.25	%	6/21/2024		2,479,433		2,470,500		2,473,234
TRITON WATER HOLDINGS, INC.	Beverage, Food & Tobacco	First Lien	Loan	3M USD LIBOR+	3.50	%		0.50	%		4.00	%	3/31/2028		1,496,250		1,489,275		1,488,215
Tronox Pigments (Netherlands) B.V.	Chemicals, Plastics, & Rubber	First Lien	Loan	3M USD LIBOR+	2.25	%		0.00	%		2.38	%	3/10/2028		372,308		371,459		368,067
TruGreen Limited Partnership	Services: Consumer	First Lien	Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%	10/29/2027		966,675		959,855		966,144
Uber Technologies, Inc.	Transportation: Consumer	First Lien	Loan	1M USD LIBOR+	3.50	%		0.00	%		3.59	%	2/25/2027		3,958,360		3,918,261		3,941,854
Ultra Clean Holdings, Inc.	High Tech Industries	First Lien	Loan	1M USD LIBOR+	3.75	%		0.00	%		3.84	%	8/27/2025		901,605		897,636		901,984
Unimin Corporation	Metals & Mining	First Lien	Loan	3M USD LIBOR+	4.00	%		1.00	%		5.00	%	7/31/2026		496,815		470,168		494,227
United Natural Foods, Inc	Beverage, Food & Tobacco	First Lien	Loan	1M USD LIBOR+	3.25	%		0.00	%		3.34	%	10/22/2025		1,624,974		1,558,624		1,620,456
United Road Services Inc.	Transportation: Cargo	First Lien	Loan	6M USD LIBOR+	5.75	%		1.00	%		6.75	%	9/1/2024		928,759		922,607		844,938
Univar Inc.	Chemicals, Plastics, & Rubber	First Lien	Loan	1M USD LIBOR+	2.00	%		0.00	%		2.09	%	5/26/2028		1,995,000		1,985,467		1,985,444
Univision Communications Inc.	Media: Broadcasting & Subscription	First Lien	Loan	1M USD LIBOR+	3.25	%		0.75	%		4.00	%	3/15/2026		2,477,697		2,470,442		2,469,967
US Ecology, Inc.	Environmental Industries	First Lien	Loan	1M USD LIBOR+	2.50	%		0.00	%		2.59	%	11/2/2026		491,250		490,458		489,103
Utz Quality Foods, LLC	Beverage, Food & Tobacco	First Lien	Loan	1M USD LIBOR+	3.00	%		0.00	%		3.09	%	1/20/2028		347,997		347,277		345,606
Verifone Systems, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	3M USD LIBOR+	4.00	%		0.00	%		4.18	%	8/20/2025		1,385,891		1,380,309		1,351,243
Vertex Aerospace Services Corp	Aerospace & Defense	First Lien	Loan	3M USD LIBOR+	4.00	%		0.75	%		4.75	%	11/10/2028		1,000,000		995,000		993,130
VFH Parent LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	3.00	%		0.00	%		3.09	%	3/1/2026		3,100,888		3,092,498		3,091,399
Victory Capital Management	Banking, Finance, Insurance & Real Estate	First Lien	Loan	3M USD LIBOR+	2.25	%		0.50	%		2.75	%	11/19/2028		1,000,000		995,000		992,500
Virence Intermediate Holdings LLC (Athenahealth / VVC Holding)	Healthcare & Pharmaceuticals	First Lien	Loan	1M USD LIBOR+	4.25	%		0.00	%		4.34	%	2/11/2026		2,950,175		2,924,974		2,942,800
Virtus Investment Partners, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.34	%	9/17/2028		3,000,000		2,990,185		2,983,740
Vistra Energy Corp	Utilities: Electric	First Lien	Loan	1M USD LIBOR+	1.75	%		0.00	%		1.84	%	12/31/2025		909,717		909,156		899,410
Vizient, Inc	Healthcare & Pharmaceuticals	First Lien	Loan	1M USD LIBOR+	2.00	%		0.00	%		2.09	%	5/6/2026		487,500		486,749		481,557
VM Consolidated, Inc.	Construction & Building	First Lien	Loan	3M USD LIBOR+	3.25	%		0.00	%		3.42	%	3/19/2028		2,345,220		2,341,823		2,328,358
Vouvray US Finance LLC	High Tech Industries	First Lien	Loan	1M USD LIBOR+	3.00	%		1.00	%		4.00	%	3/11/2024		477,500		477,500		411,992
Walker & Dunlop, Inc.	Banking, Finance, Insurance & Real Estate	First Lien	Loan	3M USD SOFR+	2.50	%		0.50	%		3.00	%	10/14/2028		500,000		498,750		499,690
Warner Music Group Corp. (WMG Acquisition Corp.)	Hotel, Gaming & Leisure	First Lien	Loan	1M USD LIBOR+	2.13	%		0.00	%		2.22	%	1/20/2028		1,250,000		1,249,738		1,235,938
Wastequip, LLC (HPCC Merger/Patriot Container)	Environmental Industries	First Lien	Loan	1M USD LIBOR+	3.75	%		1.00	%		4.75	%	3/15/2025		491,094		489,576		483,114

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
Watlow Electric Manufacturing Company	High Tech Industries	First Lien	Loan	3M USD LIBOR+	4.00	%		0.50	%		4.50	%	3/2/2028		2,487,500		2,475,939		2,471,182
WeddingWire, Inc.	Services: Consumer	First Lien	Loan	2M USD LIBOR+	4.50	%		0.00	%		4.60	%	12/19/2025		4,882,347		4,875,158		4,878,295
West Corporation	Telecommunications	First Lien	Loan	3M USD LIBOR+	4.00	%		1.00	%		5.00	%	10/10/2024		1,086,078		1,044,086		1,033,012
West Corporation	Telecommunications	First Lien	Loan	3M USD LIBOR+	3.50	%		1.00	%		4.50	%	10/10/2024		2,599,274		2,558,751		2,448,204
WEX Inc.	Services: Business	First Lien	Loan	1M USD LIBOR+	2.25	%		0.00	%		2.34	%	3/31/2028		1,990,000		1,980,808		1,971,652
WildBrain Ltd.	Media: Diversified & Production	First Lien	Loan	1M USD LIBOR+	4.25	%		0.75	%		5.00	%	3/27/2028		1,990,000		1,953,320		1,988,348
Wirepath LLC	Consumer goods: Non-durable	First Lien	Loan	1M USD LIBOR+	4.00	%		0.00	%		4.09	%	8/5/2024		2,902,749		2,888,420		2,893,083
WP CITYMD BIDCO LLC	Services: Consumer	First Lien	Loan	6M USD LIBOR+	3.75	%		0.75	%		4.50	%	8/13/2026		5,424,013		5,400,097		5,394,614
WP CITYMD BIDCO LLC	Services: Consumer	First Lien	Loan	3M USD LIBOR+	3.25	%		0.50	%		3.75	%	8/13/2028		2,000,000		1,997,499		1,989,160
Xperi Corporation	High Tech Industries	First Lien	Loan	1M USD LIBOR+	3.50	%		0.00	%		3.59	%	6/8/2028		2,776,766		2,763,896		2,762,188
ZEBRA BUYER LLC	Banking, Finance, Insurance & Real Estate	First Lien	Loan	2M USD LIBOR+	3.25	%		0.50	%		3.75	%	11/1/2028		887,097		882,754		884,329
Zekelman Industries, Inc.	Metals & Mining	First Lien	Loan	1M USD LIBOR+	2.00	%		0.00	%		2.09	%	1/25/2027		970,775		970,775		960,057
																$	675,359,709	$	666,709,161

	Number of Shares		Cost		Fair Value
Cash and cash equivalents
U.S. Bank Money Market (c)		8,059,084	$	8,059,084	$	8,059,084
Total cash and cash equivalents		8,059,084	$	8,059,084	$	8,059,084

(a)	All or a portion of this investment has an unfunded commitment as of November 30, 2021

(b)	As of November 30, 2021, the investment was in default and on non-accrual status.

(c)	Included within cash and cash equivalents in Saratoga CLO’s Statements of Assets and Liabilities as of November 30, 2021.

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 November 30, 2021 was 0.09%.

2M USD LIBOR—The 2 month USD LIBOR rate as of November 30, 2021 was 0.10%.

3M USD LIBOR—The 3 month USD LIBOR rate as of November 30, 2021 was 0.17%.

6M USD LIBOR—The 6 month USD LIBOR rate as of November 30, 2021 was 0.24%.

12M USD LIBOR - The 12 month USD LIBOR rate as of November 30, 2021 was 0.38%

3 PL WIBOR - The 3 month PL WIBOR rate as of November 30, 2021 was 2.06%

3M SOFR - The 3 month SOFR rate as of November 30, 2021 was 0.05%

Prime—The Prime Rate as of November 30, 2021 was 3.25%.

Saratoga Investment Corp. CLO 2013-1, Ltd.

Schedule of Investments

February 28, 2021

Issuer Name	Industry	Asset Name	Asset Type		Reference Rate/Spread			LIBOR Floor			Current Rate (All In)			Maturity Date		Principal/ Number of Shares		Cost		Fair Value
Covia Holdings C/S (Unimin)	Metals & Mining	Common Stock		Equity	-	-			-			-			-		49,312		385,327	$	362,443
Fusion Connect Warrant	Telecommunications	Warrants		Equity	-	-			-			-			-		32,832		-		328
J Jill Common Stock	Retail	Common Stock		Equity	-	-			-			-			-		5,085		-		24,966
McDermott International (Americas), Inc.	Energy: Oil & Gas	Lealand Finance (McDermott International) C/S - Cl		Equity	-	-			-			-			-		141,797		141,797		113,438
ABB Con-Cise Optical Group LLC	Consumer goods: Non-durable	Term Loan B		Loan	6M USD LIBOR+	5.00	%		1.00	%		6.00	%		6/15/2023		2,060,408	$	2,046,779		1,952,875
Adtalem Global Education Inc.	Services: Business	Adtalem Global Education T/L B (02/21)		Loan	1M USD LIBOR+	4.50	%		0.75	%		5.25	%		2/12/2028		2,000,000		1,980,000		1,980,000
Advisor Group, Inc.	Banking, Finance, Insurance & Real Estate	Advisor Group Holdings T/L B1		Loan	1M USD LIBOR+	4.50	%		0.00	%		4.61	%		7/31/2026		995,000		994,026		996,383
Aegis Sciences Corporation	Healthcare & Pharmaceuticals	Term Loan		Loan	3M USD LIBOR+	5.50	%		1.00	%		6.50	%		5/9/2025		3,867,445		3,842,999		3,527,419
Agiliti Health Inc.	Healthcare & Pharmaceuticals	Term Loan (09/20)		Loan	1M USD LIBOR+	2.75	%		0.75	%		3.50	%		1/4/2026		500,000		495,337		497,500
Agiliti Health Inc.	Healthcare & Pharmaceuticals	Term Loan (1/19)		Loan	1M USD LIBOR+	2.75	%		0.00	%		2.88	%		1/4/2026		491,250		491,250		487,566
Ahead Data Blue, LLC	Services: Business	Term Loan (10/20)		Loan	6M USD LIBOR+	5.00	%		1.00	%		6.00	%		9/18/2027		3,000,000		2,885,073		3,017,250
AI Convoy (Luxembourg) S.a.r.l.	Aerospace & Defense	AI Convoy (Luxembourg) USD T/L B		Loan	6M USD LIBOR+	3.50	%		1.00	%		4.50	%		1/18/2027		1,488,750		1,482,360		1,486,353
AIS HoldCo, LLC	Services: Business	Term Loan		Loan	3M USD LIBOR+	5.00	%		0.00	%		5.21	%		8/15/2025		5,246,875		5,082,782		5,089,469
Alchemy Copyrights, LLC	Media: Diversified & Production	Term Loan B		Loan	1M USD LIBOR+	3.25	%		0.75	%		4.00	%		8/16/2027		498,750		495,356		498,750
Alchemy US Holdco 1, LLC	Metals & Mining	Term Loan		Loan	1M USD LIBOR+	5.50	%		0.00	%		5.61	%		10/10/2025		1,900,000		1,879,839		1,850,923
Alion Science and Technology Corporation	Aerospace & Defense	Term Loan (2/21)		Loan	1M USD LIBOR+	2.75	%		0.75	%		3.50	%		7/23/2024		3,990,000		3,974,081		3,998,299
AlixPartners, LLP	Banking, Finance, Insurance & Real Estate	AlixPartners T/L B (01/21)		Loan	1M USD LIBOR+	2.75	%		0.50	%		3.25	%		1/27/2028		250,000		249,375		249,888
Allen Media, LLC	Media: Diversified & Production	Allen Media T/L B (1/20)		Loan	3M USD LIBOR+	5.50	%		0.00	%		5.75	%		2/10/2027		2,977,027		2,964,383		2,971,460
Altisource Solutions S.a r.l.	Banking, Finance, Insurance & Real Estate	Term Loan B (03/18)		Loan	3M USD LIBOR+	4.00	%		1.00	%		5.00	%		4/3/2024		1,223,297		1,218,530		1,040,940
Altium Packaging LLC	Containers, Packaging & Glass	Altium Packaging (Consolidated Container) T/L (01/		Loan	3M USD LIBOR+	2.75	%		0.50	%		3.25	%		1/29/2028		500,000		497,500		499,000
Altra Industrial Motion Corp.	Capital Equipment	Term Loan		Loan	1M USD LIBOR+	2.00	%		0.00	%		2.11	%		10/1/2025		1,522,387		1,519,700		1,520,012
American Greetings Corporation	Media: Advertising, Printing & Publishing	Term Loan		Loan	1M USD LIBOR+	4.50	%		1.00	%		5.50	%		4/6/2024		4,230,503		4,228,066		4,239,302
American Trailer World Corp	Automotive	American Trailer World T/L		Loan	1M USD LIBOR+	3.75	%		0.75	%		4.50	%		2/17/2028		2,000,000		1,990,000		1,990,000
AmeriLife Holdings LLC	Banking, Finance, Insurance & Real Estate	AmeriLife T/L		Loan	1M USD LIBOR+	4.00	%		0.00	%		4.12	%		3/18/2027		1,492,642		1,484,080		1,490,149
AmWINS Group, LLC	Banking, Finance, Insurance & Real Estate	AmWINS Group (2/21) T/L		Loan	1M USD LIBOR+	2.25	%		0.75	%		3.00	%		2/17/2028		2,000,000		1,995,000		1,999,160
Anastasia Parent LLC	Consumer goods: Non-durable	Term Loan		Loan	3M USD LIBOR+	3.75	%		0.00	%		4.00	%		8/11/2025		977,500		974,191		669,891
Anchor Glass Container Corporation	Containers, Packaging & Glass	Term Loan (07/17)		Loan	3M USD LIBOR+	2.75	%		1.00	%		3.75	%		12/7/2023		480,088		478,981		407,076

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
Anchor Packaging, LLC	Containers, Packaging & Glass	Term Loan B		Loan	1M USD LIBOR+	4.00	%		0.00	%		4.11	%		7/10/2026		997,468		987,853		999,962
APi Group DE, Inc. (J2 Acquisition)	Services: Business	Term Loan B		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.61	%		10/1/2026		990,000		985,758		990,000
APLP Holdings Limited Partnership	Energy: Electricity	APLP Holdings T/L B (01/20)		Loan	1M USD LIBOR+	2.50	%		1.00	%		3.50	%		4/14/2025		1,618,421		1,618,421		1,617,207
Apollo Commercial Real Estate Finance, Inc.	Banking, Finance, Insurance & Real Estate	Term Loan B		Loan	1M USD LIBOR+	2.75	%		0.00	%		2.86	%		5/15/2026		3,000,000		2,960,051		2,925,000
AppLovin Corporation	High Tech Industries	Applovin T/L B		Loan	1M USD LIBOR+	3.50	%		0.00	%		3.61	%		8/15/2025		1,000,000		1,000,000		998,100
Aramark Corporation	Services: Consumer	Term Loan		Loan	1M USD LIBOR+	1.75	%		0.00	%		1.86	%		1/15/2027		2,481,250		2,401,701		2,454,105
Arctic Glacier U.S.A., Inc.	Beverage, Food & Tobacco	Term Loan (3/18)		Loan	3M USD LIBOR+	3.50	%		1.00	%		4.50	%		3/20/2024		3,350,967		3,337,028		3,140,124
Aretec Group, Inc.	Banking, Finance, Insurance & Real Estate	Term Loan (10/18)		Loan	1M USD LIBOR+	4.25	%		0.00	%		4.36	%		10/1/2025		1,960,000		1,956,623		1,954,492
ARISTOCRAT LEISURE LIMITED	Hotel, Gaming & Leisure	Term Loan (5/20)		Loan	2M USD LIBOR+	3.75	%		1.00	%		4.75	%		10/19/2024		995,000		978,205		1,000,184
ASG Technologies Group, Inc	High Tech Industries	Term Loan		Loan	1M USD LIBOR+	3.50	%		1.00	%		4.50	%		7/31/2024		461,401		460,194		454,480
ASP MSG Acquisition Co., Inc	Beverage, Food & Tobacco	Term Loan (2/17)		Loan	1M USD LIBOR+	4.00	%		1.00	%		5.00	%		8/16/2023		3,830,991		3,793,847		3,835,779
Aspen Dental Management, Inc.	Services: Consumer	Term Loan B		Loan	1M USD LIBOR+	2.75	%		0.00	%		2.86	%		4/30/2025		1,950,276		1,944,024		1,926,872
Asplundh Tree Expert, LLC	Services: Business	Term Loan		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.61	%		9/4/2027		997,500		992,854		998,128
Asurion, LLC	Banking, Finance, Insurance & Real Estate	Term Loan B6		Loan	1M USD LIBOR+	3.00	%		0.00	%		3.11	%		11/3/2023		328,929		327,483		328,244
Asurion, LLC	Banking, Finance, Insurance & Real Estate	Term Loan B8		Loan	1M USD LIBOR+	3.25	%		0.00	%		3.36	%		12/18/2026		1,525,365		1,515,790		1,520,362
Avast Software S.R.O. (Sybil Finance)	High Tech Industries	Term Loan B (4/18)		Loan	3M USD LIBOR+	2.25	%		1.00	%		3.25	%		9/29/2023		650,351		642,686		650,351
Avaya, Inc.	Telecommunications	Term Loan B1		Loan	1M USD LIBOR+	4.25	%		0.00	%		4.36	%		12/15/2027		1,755,766		1,745,975		1,760,437
Avaya, Inc.	Telecommunications	Avaya T/L B-2		Loan	1M USD LIBOR+	4.00	%		0.00	%		4.11	%		12/15/2027		1,000,000		1,000,000		1,001,250
Avison Young (Canada) Inc	Services: Business	Term Loan		Loan	3M USD LIBOR+	5.00	%		0.00	%		5.19	%		1/31/2026		3,441,108		3,392,968		3,441,108
Avolon TLB Borrower 1 (US) LLC	Capital Equipment	Term Loan B3		Loan	1M USD LIBOR+	1.75	%		0.75	%		2.50	%		1/15/2025		1,000,000		869,301		996,390
Avolon TLB Borrower 1 (US) LLC	Capital Equipment	Term Loan B5		Loan	1M USD LIBOR+	2.50	%		0.75	%		3.25	%		12/20/2027		500,000		495,171		500,625
Azalea TopCo, Inc.	Services: Business	Incremental Term Loan		Loan	3M USD LIBOR+	4.00	%		0.75	%		4.75	%		7/24/2026		500,000		495,287		501,250
B&G Foods, Inc.	Beverage, Food & Tobacco	Term Loan		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.61	%		10/10/2026		706,458		700,750		706,960
B.C. Unlimited Liability Co (Burger King)	Beverage, Food & Tobacco	Term Loan B4		Loan	1M USD LIBOR+	1.75	%		0.00	%		1.86	%		11/19/2026		1,485,000		1,447,423		1,469,912
Baldwin Risk Partners, LLC	Banking, Finance, Insurance & Real Estate	Term Loan		Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%		10/14/2027		997,500		983,184		1,002,488
BALL METALPACK, LLC (PE Spray)	Containers, Packaging & Glass	Term Loan		Loan	3M USD LIBOR+	4.50	%		0.00	%		4.69	%		7/25/2025		3,904,887		3,891,579		3,887,823
Bass Pro Group, LLC	Retail	Term Loan B (02/21)		Loan	1M USD LIBOR+	4.25	%		0.75	%		5.00	%		2/26/2028		1,000,000		995,000		1,000,780
Berry Plastics Holding Corporation	Chemicals, Plastics, & Rubber	Term Loan Y		Loan	1M USD LIBOR+	2.00	%		0.00	%		2.12	%		7/1/2026		4,937,374		4,932,962		4,932,980

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
Blackstone Mortgage Trust, Inc.	Banking, Finance, Insurance & Real Estate	Term Loan B		Loan	1M USD LIBOR+	2.25	%		0.00	%		2.36	%		4/23/2026		1,000,000		992,500		985,000
Blackstone Mortgage Trust, Inc.	Banking, Finance, Insurance & Real Estate	Blackstone Mortgage T/L B-2		Loan	1M USD LIBOR+	4.75	%		1.00	%		5.75	%		4/23/2026		1,494,994		1,484,017		1,498,731
Blount International, Inc.	Forest Products & Paper	Term Loan B (09/18)		Loan	1M USD LIBOR+	3.75	%		1.00	%		4.75	%		4/12/2023		3,418,806		3,416,907		3,422,225
Blucora, Inc.	Services: Consumer	Term Loan (11/17)		Loan	3M USD LIBOR+	4.00	%		1.00	%		5.00	%		5/22/2024		2,451,227		2,443,549		2,454,291
Bombardier Recreational Products, Inc.	Consumer goods: Durable	Term Loan (1/20)		Loan	1M USD LIBOR+	2.00	%		0.00	%		2.12	%		5/24/2027		1,485,050		1,473,875		1,475,620
Boxer Parent Company, Inc.	High Tech Industries	Boxer Parent Company T/L (BMC Software) (2/21)		Loan	1M USD LIBOR+	3.75	%		0.00	%		3.90	%		10/2/2025		528,897		528,897		528,829
Bracket Intermediate Holding Corp	Healthcare & Pharmaceuticals	Term Loan		Loan	3M USD LIBOR+	4.25	%		0.00	%		4.49	%		9/5/2025		977,500		974,177		975,868
BrightSpring Health Services (Phoenix Guarantor)	Healthcare & Pharmaceuticals	Phoenix Guarantor (Brightspring) T/L (02/21)		Loan	6M USD LIBOR+	3.50	%		0.00	%		3.76	%		3/5/2026		1,000,000		1,000,000		1,000,710
BroadStreet Partners, Inc.	Banking, Finance, Insurance & Real Estate	Term Loan B3		Loan	1M USD LIBOR+	3.25	%		0.00	%		3.36	%		1/22/2027		2,009,429		2,007,872		1,996,207
Brookfield WEC Holdings Inc.	Energy: Electricity	Brookfield WEC T/L (Westinghouse) (1/21)		Loan	1M USD LIBOR+	2.75	%		0.50	%		3.25	%		8/1/2025		1,492,462		1,495,340		1,488,492
Buckeye Partners, L.P.	Utilities: Oil & Gas	Buckeye Partners T/L (1/21)		Loan	1M USD LIBOR+	2.25	%		0.00	%		2.37	%		11/1/2026		1,989,987		1,975,617		1,987,182
BW Gas & Convenience Holdings LLC	Beverage, Food & Tobacco	Term Loan		Loan	1M USD LIBOR+	6.25	%		0.00	%		6.37	%		11/18/2024		2,230,357		2,160,253		2,255,449
Cable & Wireless Communications Limited	Telecommunications	Term Loan B-5		Loan	1M USD LIBOR+	2.25	%		0.00	%		2.36	%		1/31/2028		2,000,000		2,000,000		1,988,220
Callaway Golf Company	Retail	Term Loan B		Loan	1M USD LIBOR+	4.50	%		0.00	%		4.61	%		1/4/2026		690,000		679,310		692,298
Cardtronics Inc	Banking, Finance, Insurance & Real Estate	Term Loan		Loan	1M USD LIBOR+	4.00	%		1.00	%		5.00	%		6/29/2027		1,494,994		1,489,184		1,495,936
CareerBuilder, LLC	Services: Business	Term Loan		Loan	3M USD LIBOR+	6.75	%		1.00	%		7.75	%		7/31/2023		3,393,388		3,230,834		3,230,505
CareStream Health, Inc.	Healthcare & Pharmaceuticals	Term Loan		Loan	6M USD LIBOR+	6.75	%		1.00	%		7.75	%		5/8/2023		2,306,786		2,302,501		2,298,136
Casa Systems, Inc	Telecommunications	Term Loan		Loan	6M USD LIBOR+	4.00	%		1.00	%		5.00	%		12/20/2023		1,440,000		1,433,828		1,435,205
Castle US Holding Corporation	Media: Advertising, Printing & Publishing	Term Loan B (USD)		Loan	3M USD LIBOR+	3.75	%		0.00	%		4.00	%		1/27/2027		496,875		494,809		493,059
Catalent Pharma Solutions, Inc.	Healthcare & Pharmaceuticals	Term Loan B3 (2/21)		Loan	1M USD LIBOR+	2.00	%		0.50	%		2.50	%		5/18/2026		500,000		500,000		500,780
CBI BUYER, INC.	Consumer goods: Durable	New Trojan Parent (Careismatic/CBI Buyer) 1st Lien		Loan	1M USD LIBOR+	3.25	%		0.50	%		3.75	%		1/6/2028		1,000,000		997,597		1,000,630
CCI Buyer, Inc	Telecommunications	Term Loan		Loan	3M USD LIBOR+	4.00	%		0.75	%		4.75	%		12/17/2027		250,000		247,558		251,720
CCS-CMGC Holdings, Inc.	Healthcare & Pharmaceuticals	Term Loan		Loan	1M USD LIBOR+	5.50	%		0.00	%		5.61	%		9/25/2025		2,450,000		2,432,841		2,417,856
Cengage Learning Acquisitions, Inc.	Media: Advertising, Printing & Publishing	Term Loan		Loan	6M USD LIBOR+	4.25	%		1.00	%		5.25	%		6/7/2023		1,432,459		1,424,074		1,410,370
CenturyLink, Inc.	Telecommunications	Term Loan B (1/20)		Loan	1M USD LIBOR+	2.25	%		0.00	%		2.36	%		3/15/2027		2,970,000		2,967,083		2,957,170
Chemours Company, (The)	Chemicals, Plastics, & Rubber	Term Loan		Loan	1M USD LIBOR+	1.75	%		0.00	%		1.87	%		4/3/2025		989,822		940,018		979,617

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
CITADEL SECURITIES LP	Banking, Finance, Insurance & Real Estate	Citadel Securities T/L B (01/21)		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.61	%		2/27/2028		5,000,000		4,993,750		4,970,300
Clarios Global LP	Automotive	Term Loan B		Loan	1M USD LIBOR+	3.50	%		0.00	%		3.61	%		4/30/2026		1,454,464		1,442,855		1,455,381
Claros Mortgage Trust, Inc	Banking, Finance, Insurance & Real Estate	Term Loan B		Loan	1M USD LIBOR+	5.00	%		1.00	%		6.00	%		8/9/2026		997,475		972,272		999,968
CNT Holdings I Corp	Retail	Term Loan		Loan	6M USD LIBOR+	3.75	%		0.75	%		4.50	%		11/8/2027		500,000		497,627		501,955
Cole Haan	Consumer goods: Non-durable	Term Loan B		Loan	3M USD LIBOR+	5.50	%		0.00	%		5.69	%		2/7/2025		950,000		942,246		874,000
Compass Power Generation, LLC	Utilities: Electric	Term Loan B (08/18)		Loan	1M USD LIBOR+	3.50	%		1.00	%		4.50	%		12/20/2024		1,802,012		1,798,648		1,796,390
Concordia Healthcare Corp.	Healthcare & Pharmaceuticals	Term Loan		Loan	1M USD LIBOR+	5.50	%		1.00	%		6.50	%		9/6/2024		1,159,370		1,118,148		1,156,472
Connect Finco SARL	Telecommunications	Term Loan (1/21)		Loan	1M USD LIBOR+	3.50	%		1.00	%		4.50	%		12/11/2026		2,977,500		2,831,053		2,987,058
Consolidated Communications, Inc.	Telecommunications	Term Loan B (10/20)		Loan	1M USD LIBOR+	4.75	%		1.00	%		5.75	%		10/2/2027		997,500		983,260		1,002,328
CoreCivic, Inc.	Banking, Finance, Insurance & Real Estate	Term Loan (12/19)		Loan	1M USD LIBOR+	4.50	%		1.00	%		5.50	%		12/18/2024		3,454,545		3,404,660		3,340,822
CPI Card Group	Banking, Finance, Insurance & Real Estate	Term Loan B (1st Lien)		Loan	3M USD LIBOR+	4.50	%		1.00	%		5.50	%		8/17/2022		1,436,782		1,431,179		1,422,414
CSC Holdings LLC (Neptune Finco Corp.)	Media: Broadcasting & Subscription	Term Loan B		Loan	1M USD LIBOR+	2.25	%		0.00	%		2.36	%		1/15/2026		490,000		489,175		486,849
CSC Holdings LLC (Neptune Finco Corp.)	Media: Broadcasting & Subscription	Term Loan B (03/17)		Loan	1M USD LIBOR+	2.25	%		0.00	%		2.36	%		7/15/2025		1,954,315		1,936,120		1,941,925
CSC Holdings LLC (Neptune Finco Corp.)	Media: Broadcasting & Subscription	Term Loan B-5		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.61	%		4/15/2027		495,000		495,000		492,911
CTS Midco, LLC	High Tech Industries	Term Loan B		Loan	3M USD LIBOR+	6.00	%		1.00	%		7.00	%		11/2/2027		2,000,000		1,942,014		2,002,500
Daseke Inc	Transportation: Cargo	Replacement Term Loan		Loan	1M USD LIBOR+	5.00	%		1.00	%		6.00	%		2/27/2024		1,935,738		1,928,854		1,939,978
DCert Buyer, Inc.	High Tech Industries	DCert Buyer T/L (Digicert)		Loan	1M USD LIBOR+	4.00	%		0.00	%		4.11	%		10/16/2026		1,500,000		1,500,000		1,500,540
Dealer Tire, LLC	Automotive	Dealer Tire T/L B-1		Loan	1M USD LIBOR+	4.25	%		0.00	%		4.36	%		12/12/2025		2,970,000		2,963,784		2,966,288
Delek US Holdings, Inc.	Utilities: Oil & Gas	Term Loan B		Loan	1M USD LIBOR+	2.25	%		0.00	%		2.36	%		3/31/2025		6,380,682		6,326,939		6,247,773
Dell International LLC	High Tech Industries	Term Loan B-2		Loan	1M USD LIBOR+	1.75	%		0.75	%		2.00	%		9/19/2025		2,530,374		2,528,058		2,537,763
Delta 2 (Lux) S.a.r.l.	Hotel, Gaming & Leisure	Term Loan B		Loan	1M USD LIBOR+	2.50	%		1.00	%		3.50	%		2/1/2024		818,289		817,549		813,175
Delta Air Lines, Inc.	Transportation: Consumer	Term Loan B (4/20)		Loan	1M USD LIBOR+	4.75	%		1.00	%		5.75	%		4/29/2023		2,243,737		2,240,713		2,257,761
DHX Media Ltd.	Media: Broadcasting & Subscription	Term Loan		Loan	1M USD LIBOR+	4.25	%		1.00	%		5.25	%		12/29/2023		279,282		278,315		278,584
Diamond Sports Group, LLC	Media: Broadcasting & Subscription	Term Loan		Loan	1M USD LIBOR+	3.25	%		0.00	%		3.37	%		8/24/2026		3,443,844		2,912,847		2,582,883
Digital Room LLC	Media: Advertising, Printing & Publishing	Term Loan		Loan	6M USD LIBOR+	5.00	%		0.00	%		5.27	%		5/21/2026		2,955,000		2,925,480		2,910,675
Dole Food Company Inc.	Beverage, Food & Tobacco	Term Loan B		Loan	1M USD LIBOR+	2.75	%		1.00	%		3.75	%		4/6/2024		456,250		455,172		456,410

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	DRW Holdings T/L (2/21)		Loan	1M USD LIBOR+	3.75	%		0.00	%		3.87	%		2/24/2028		552,519		549,756		551,138
DRW Holdings, LLC	Banking, Finance, Insurance & Real Estate	Term Loan B		Loan	1M USD LIBOR+	4.25	%		0.00	%		4.36	%		11/29/2026		5,947,481		5,897,811		5,932,612
DTZ U.S. Borrower, LLC	Construction & Building	Term Loan		Loan	1M USD LIBOR+	2.75	%		0.00	%		2.86	%		8/21/2025		3,915,462		3,901,786		3,886,801
EagleTree - Carbride Acquisition (Corsair Components)	Consumer goods: Durable	Term Loan		Loan	1M USD LIBOR+	3.75	%		1.00	%		4.75	%		8/28/2024		2,868,047		2,867,816		2,868,047
Edelman Financial Group Inc., The	Banking, Finance, Insurance & Real Estate	Term Loan B (06/18)		Loan	1M USD LIBOR+	3.00	%		0.00	%		3.11	%		7/21/2025		1,225,000		1,220,875		1,214,502
Electrical Components Inter., Inc.	Capital Equipment	Term Loan (6/18)		Loan	1M USD LIBOR+	4.25	%		0.00	%		4.36	%		6/26/2025		1,950,000		1,947,116		1,903,083
ELO Touch Solutions, Inc.	Media: Diversified & Production	Term Loan (12/18)		Loan	1M USD LIBOR+	6.50	%		0.00	%		6.61	%		12/14/2025		2,558,602		2,457,436		2,564,999
Encapsys, LLC (Cypress Performance Group)	Chemicals, Plastics, & Rubber	Term Loan B2		Loan	1M USD LIBOR+	3.25	%		1.00	%		4.25	%		11/7/2024		492,284		488,655		492,284
Endo Luxembourg Finance Company I S.a.r.l.	Healthcare & Pharmaceuticals	Term Loan B (4/17)		Loan	3M USD LIBOR+	4.25	%		0.75	%		5.00	%		4/29/2024		3,896,646		3,879,939		3,869,057
Endure Digital, Inc.	High Tech Industries	Endurance International T/L B		Loan	1M USD LIBOR+	3.50	%		0.75	%		4.25	%		1/27/2028		2,500,000		2,487,500		2,481,250
Ensemble RCM LLC	Services: Business	Term Loan		Loan	3M USD LIBOR+	3.75	%		0.00	%		3.96	%		7/24/2026		3,000,000		2,992,500		3,004,230
Enterprise Merger Sub Inc.	Healthcare & Pharmaceuticals	Term Loan B (06/18)		Loan	1M USD LIBOR+	3.75	%		0.00	%		3.86	%		10/10/2025		4,900,000		4,891,890		4,204,200
EVERI Payments Inc.	Hotel, Gaming & Leisure	Everi Payments T/L B		Loan	1M USD LIBOR+	2.75	%		0.75	%		3.50	%		5/9/2024		3,000,000		3,000,000		2,988,120
EyeCare Partners, LLC	Healthcare & Pharmaceuticals	EyeCare Partners T/L B		Loan	1M USD LIBOR+	3.75	%		0.00	%		3.86	%		2/18/2027		1,987,838		1,986,442		1,956,032
Finco I LLC	Banking, Finance, Insurance & Real Estate	FinCo T/L B (9/20) (Fortress Investment)		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.61	%		6/27/2025		1,822,272		1,815,715		1,821,142
First Eagle Investment Management	Banking, Finance, Insurance & Real Estate	Refinancing Term Loan		Loan	3M USD LIBOR+	2.50	%		0.00	%		2.75	%		2/1/2027		5,395,500		5,375,893		5,378,990
Fitness International, LLC (LA Fitness)	Services: Consumer	Term Loan B (4/18)		Loan	1M USD LIBOR+	3.25	%		1.00	%		4.25	%		4/18/2025		1,330,058		1,324,204		1,196,813
Flex Acquisition Company (Hilex Poly/Novolex) T/L (02/21)	Containers, Packaging & Glass	Term Loan		Loan	3M USD LIBOR+	4.00	%		0.50	%		4.50	%		3/2/2028		1,000,000		995,000		997,810
FOCUS FINANCIAL PARTNERS, LLC	Banking, Finance, Insurance & Real Estate	Focus Financial T/L (1/20)		Loan	1M USD LIBOR+	2.00	%		0.00	%		2.11	%		7/3/2024		500,000		499,435		497,815
Franchise Group, Inc.	Services: Consumer	Franchise Group First Out T/L		Loan	6M USD LIBOR+	4.75	%		0.75	%		5.50	%		10/25/2026		1,000,000		990,000		1,000,000
Franklin Square Holdings, L.P.	Banking, Finance, Insurance & Real Estate	Term Loan		Loan	1M USD LIBOR+	2.25	%		0.00	%		2.38	%		8/1/2025		4,398,742		4,374,564		4,382,247
Froneri International (R&R Ice Cream)	Beverage, Food & Tobacco	Term Loan B-2		Loan	1M USD LIBOR+	2.25	%		0.00	%		2.36	%		1/29/2027		1,990,000		1,985,937		1,971,453
Fusion Telecommunications International Inc.	Telecommunications	Take Back 2nd Out Term Loan		Loan	6M USD LIBOR+	1.00	%		2.00	%		3.00	%		7/14/2025		813,105		795,920		412,651
Gemini HDPE LLC	Chemicals, Plastics, & Rubber	Term Loan B (12/20)		Loan	3M USD LIBOR+	3.00	%		0.50	%		3.50	%		12/31/2027		2,000,000		1,980,103		1,995,000
General Nutrition Centers, Inc. (b)	Retail	Term Loan B2		Loan	Prime+	7.75	%		0.75	%		11.00	%		3/4/2021		389,896		389,896		292,422
Genesee & Wyoming, Inc.	Transportation: Cargo	Term Loan (11/19)		Loan	3M USD LIBOR+	2.00	%		0.00	%		2.25	%		12/30/2026		1,488,750		1,482,600		1,489,986

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
GEO Group, Inc., The	Banking, Finance, Insurance & Real Estate	Term Loan Refinance		Loan	1M USD LIBOR+	2.00	%		0.75	%		2.75	%		3/22/2024		3,963,971		3,665,551			3,609,710
GGP Inc.	Banking, Finance, Insurance & Real Estate	Term Loan B		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.61	%		8/27/2025		3,969,542		3,201,121			3,862,603
GI Chill Acquisition LLC	Services: Business	Term Loan		Loan	3M USD LIBOR+	4.00	%		0.00	%		4.25	%		8/1/2025		2,443,750		2,435,372			2,448,344
Gigamon Inc.	Services: Business	Term Loan B		Loan	6M USD LIBOR+	3.75	%		0.75	%		4.50	%		12/27/2024		2,930,400		2,913,040			2,930,400
Global Business Travel (GBT) III Inc.	Hotel, Gaming & Leisure	Term Loan		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.61	%		8/13/2025		4,398,750		4,397,949			4,215,454
Global Tel*Link Corporation	Telecommunications	Term Loan B		Loan	1M USD LIBOR+	4.25	%		0.00	%		4.36	%		11/29/2025		5,000,167		4,764,345			4,675,956
Go Wireless Holdings, Inc.	Telecommunications	Term Loan		Loan	1M USD LIBOR+	6.50	%		1.00	%		7.50	%		12/22/2024		3,024,675		2,992,914			3,017,114
Goodyear Tire & Rubber Company, The	Chemicals, Plastics, & Rubber	Second Lien Term Loan		Loan	1M USD LIBOR+	2.00	%		0.00	%		2.12	%		3/3/2025		3,000,000		2,933,783			2,953,740
Graham Packaging T/L (2/21)	Containers, Packaging & Glass	Term Loan		Loan	1M USD LIBOR+	3.75	%		0.75	%		4.50	%		8/4/2027		979,661		972,912			980,660
Greenhill & Co., Inc.	Banking, Finance, Insurance & Real Estate	Term Loan B		Loan	1M USD LIBOR+	3.25	%		0.00	%		3.36	%		4/12/2024		3,419,615		3,393,171			3,398,243
Grosvenor Capital Management Holdings, LLLP	Banking, Finance, Insurance & Real Estate	Term Loan B		Loan	1M USD LIBOR+	2.75	%		1.00	%		3.75	%		3/31/2025		2,399,991		2,398,303			2,395,791
Guidehouse LLP (fka PricewaterhouseCoopers)	Aerospace & Defense	Term Loan		Loan	1M USD LIBOR+	4.00	%		0.00	%		4.11	%		5/1/2025		4,924,683		4,903,634			4,951,572
Harbor Freight Tools USA, Inc.	Retail	Term Loan B (10/20)		Loan	1M USD LIBOR+	3.25	%		0.75	%		4.00	%		10/20/2027		2,992,500		2,967,649			3,004,979
Harland Clarke Holdings Corp.	Media: Advertising, Printing & Publishing	Term Loan		Loan	3M USD LIBOR+	4.75	%		1.00	%		5.75	%		11/3/2023		1,612,899		1,607,974			1,536,738
Helix Gen Funding, LLc	Energy: Electricity	Term Loan B (02/17)		Loan	1M USD LIBOR+	3.75	%		1.00	%		4.75	%		6/3/2024		244,627		244,418			243,418
Hillman Group Inc. (The) (New)	Consumer goods: Durable	Hillman Group T/L B-1 (2/21)		Loan	6M USD LIBOR+	2.75	%		0.50	%		3.25	%		2/23/2028		3,523,207		3,514,399			3,523,207
Hillman Group Inc. (The) (New)	Consumer goods: Durable	Hillman Group T/L B-2 (2/21)		Loan	6M USD LIBOR+	2.75	%		0.50	%		2.99	%		2/23/2028		632,911		631,329			632,911
Hillman Group Inc. (The) (New)(a)	Consumer goods: Durable	Unfunded Commitment		Loan	3M USD LIBOR+	2.75	%		0.50	%		0.00	%		2/23/2028		-		(2,110	)		-
HLF Financing SARL (Herbalife)	Consumer goods: Non-durable	Term Loan B (08/18)		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.61	%		8/18/2025		3,910,000		3,897,913			3,912,111
Holley Purchaser, Inc	Automotive	Term Loan B		Loan	3M USD LIBOR+	5.00	%		0.00	%		5.21	%		10/24/2025		2,450,000		2,432,788			2,423,981
Howden Group Holdings	Banking, Finance, Insurance & Real Estate	Term Loan (1/21)		Loan	3M USD LIBOR+	3.25	%		0.75	%		4.00	%		11/12/2027		1,692,335		1,686,025			1,695,212
Hudson River Trading LLC	Banking, Finance, Insurance & Real Estate	Term Loan B (01/20)		Loan	1M USD LIBOR+	3.00	%		0.00	%		3.11	%		2/18/2027		5,940,000		5,920,701			5,925,150
Idera, Inc.	High Tech Industries	Idera T/L (1/21)		Loan	1M USD LIBOR+	3.75	%		0.75	%		4.50	%		6/28/2028		1,000,000		997,500			1,000,000
Idera, Inc.	High Tech Industries	Term Loan B		Loan	6M USD LIBOR+	4.00	%		1.00	%		5.00	%		6/27/2024		3,896,805		3,886,520			3,896,805
INEOS US PETROCHEM LLC	Chemicals, Plastics, & Rubber	INEOS US Petrochem T/L (INEOS Quattro)		Loan	1M USD LIBOR+	2.75	%		0.50	%		3.25	%		1/20/2026		1,000,000		995,073			1,003,750
INFINITE BIDCO LLC	Wholesale	Infinite Bidco T/L		Loan	1M USD LIBOR+	3.75	%		0.75	%		4.50	%		2/22/2028		1,500,000		1,496,250			1,500,000
Inmar Acquisition Sub, Inc.	Services: Business	Term Loan B		Loan	3M USD LIBOR+	4.00	%		1.00	%		5.00	%		5/1/2024		3,421,586		3,360,370			3,400,920
Innophos, Inc.	Chemicals, Plastics, & Rubber	Term Loan B		Loan	1M USD LIBOR+	3.50	%		0.00	%		3.61	%		2/4/2027		496,250		494,123			498,424
Intermediate Dutch Holdings	Services: Business	Nielsen Consumer T/L B		Loan	1M USD LIBOR+	4.00	%		0.00	%		4.13	%		2/3/2028		250,000		248,750			250,313

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
Isagenix International, LLC	Beverage, Food & Tobacco	Term Loan		Loan	3M USD LIBOR+	5.75	%		1.00	%		6.75	%		6/14/2025		2,622,582		2,586,650		1,652,227
Ivory Merger Sub, Inc.	Healthcare & Pharmaceuticals	Term Loan		Loan	1M USD LIBOR+	3.50	%		0.00	%		3.62	%		3/14/2025		957,262		954,285		944,100
J Jill Group, Inc	Retail	Priming Term Loan		Loan	6M USD LIBOR+	5.00	%		1.00	%		6.00	%		5/8/2024		1,779,081		1,776,970		1,138,612
Jane Street Group	Banking, Finance, Insurance & Real Estate	Jane Street Group T/L (1/21)		Loan	1M USD LIBOR+	2.75	%		0.00	%		2.86	%		1/31/2028		2,500,000		2,496,997		2,491,975
Jefferies Finance LLC / JFIN Co-Issuer Corp	Banking, Finance, Insurance & Real Estate	Term Loan		Loan	1M USD LIBOR+	3.00	%		0.00	%		3.13	%		6/3/2026		3,796,822		3,781,950		3,789,380
Journey Personal Care Corp.	Consumer goods: Non-durable	Journey Personal Care T/L B (Domtar)		Loan	6M USD LIBOR+	4.25	%		0.75	%		5.00	%		2/19/2028		1,000,000		995,000		1,002,500
JP Intermediate B, LLC	Consumer goods: Non-durable	Term Loan		Loan	3M USD LIBOR+	5.50	%		1.00	%		6.50	%		11/15/2025		4,423,877		4,386,340		4,154,021
KAR Auction Services, Inc.	Automotive	Term Loan B (09/19)		Loan	1M USD LIBOR+	2.25	%		0.00	%		2.44	%		9/19/2026		246,875		246,391		243,172
Kindred Healthcare, Inc.	Healthcare & Pharmaceuticals	Term Loan (6/18)		Loan	1M USD LIBOR+	4.50	%		0.00	%		4.63	%		7/2/2025		1,979,747		1,962,749		1,982,222
Klockner-Pentaplast of America, Inc.	Containers, Packaging & Glass	Klockner Pentaplast T/L (Kleopatra)		Loan	1M USD LIBOR+	4.75	%		0.50	%		5.25	%		2/4/2026		1,500,000		1,492,500		1,500,945
Kodiak BP, LLC	Construction & Building	Term Loan		Loan	1M USD LIBOR+	3.25	%		0.75	%		4.00	%		2/26/2028		500,000		497,500		499,375
KREF Holdings X LLC	Banking, Finance, Insurance & Real Estate	Term Loan		Loan	3M USD LIBOR+	4.75	%		1.00	%		5.75	%		8/4/2027		500,000		488,256		501,250
Lakeland Tours, LLC	Hotel, Gaming & Leisure	2nd Out Take Back PIK Term Loan		Loan	3M USD LIBOR+	1.50	%		1.25	%		2.75	%		9/25/2025		585,723		478,159		524,222
Lakeland Tours, LLC	Hotel, Gaming & Leisure	Third Out PIK Term Loan		Loan	3M USD LIBOR+	1.50	%		1.25	%		2.75	%		9/25/2025		777,562		451,283		515,780
Lakeland Tours, LLC	Hotel, Gaming & Leisure	Holdco Fixed Term Loan		Loan	Fixed	8.00	%		0.00	%		13.25	%		9/27/2027		763,381		128,938		277,359
Lakeland Tours, LLC	Hotel, Gaming & Leisure	Priority Exit PIK Term Loan (9/20)		Loan	3M USD LIBOR+	6.00	%		1.25	%		7.25	%		9/25/2023		306,588		292,181		306,076
Lealand Finance Company B.V.	Energy: Oil & Gas	Exit Term Loan		Loan	1M USD LIBOR+	1.00	%		0.00	%		1.11	%		6/30/2025		324,682		324,682		209,258
Learfield Communications, Inc	Media: Advertising, Printing & Publishing	Initial Term Loan (A-L Parent)		Loan	1M USD LIBOR+	3.25	%		1.00	%		4.25	%		12/1/2023		480,000		478,959		439,296
Lifetime Brands, Inc	Consumer goods: Non-durable	Term Loan B		Loan	1M USD LIBOR+	3.50	%		1.00	%		4.50	%		2/28/2025		2,905,639		2,876,036		2,878,413
Liftoff Mobile, Inc.	Media: Advertising, Printing & Publishing	Liftoff Mobile T/L		Loan	1M USD LIBOR+	3.50	%		0.75	%		4.25	%		2/17/2028		1,000,000		995,000		997,500
Lightstone Generation LLC	Energy: Electricity	Term Loan B		Loan	3M USD LIBOR+	3.75	%		1.00	%		4.75	%		1/30/2024		1,322,520		1,321,129		1,133,241
Lightstone Generation LLC	Energy: Electricity	Term Loan C		Loan	3M USD LIBOR+	3.75	%		1.00	%		4.75	%		1/30/2024		74,592		74,517		63,917
Lindblad Expeditions, Inc.	Hotel, Gaming & Leisure	Cayman Term Loan		Loan	1M USD LIBOR+	3.50	%		0.75	%		4.25	%		3/21/2025		98,191		98,037		90,827
Lindblad Expeditions, Inc.	Hotel, Gaming & Leisure	US 2018 Term Loan		Loan	1M USD LIBOR+	3.50	%		0.75	%		4.25	%		3/21/2025		392,764		392,147		363,307
Liquidnet Holdings, Inc.	Banking, Finance, Insurance & Real Estate	Term Loan B		Loan	6M USD LIBOR+	3.25	%		1.00	%		4.25	%		7/11/2024		1,960,766		1,957,232		1,952,237
LogMeIn, Inc.	High Tech Industries	Term Loan (8/20)		Loan	1M USD LIBOR+	4.75	%		0.00	%		4.87	%		8/31/2027		4,000,000		3,927,780		3,996,680
LPL Holdings, Inc.	Banking, Finance, Insurance & Real Estate	Term Loan B1		Loan	1M USD LIBOR+	1.75	%		0.00	%		1.87	%		11/11/2026		1,232,760		1,230,271		1,224,032
MA FinanceCo LLC	High Tech Industries	Term Loan B4		Loan	3M USD LIBOR+	4.25	%		1.00	%		5.25	%		5/29/2025		2,474,961		2,466,727		2,502,804

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
Marriott Ownership Resorts, Inc.	Hotel, Gaming & Leisure	Term Loan (11/19)		Loan	1M USD LIBOR+	1.75	%		0.00	%		1.86	%		8/29/2025		1,317,074		1,317,074		1,296,080
Match Group, Inc, The	Services: Consumer	Term Loan (1/20)		Loan	3M USD LIBOR+	1.75	%		0.00	%		1.95	%		2/15/2027		250,000		249,476		247,735
Mayfield Agency Borrower Inc. (FeeCo)	Banking, Finance, Insurance & Real Estate	Term Loan		Loan	1M USD LIBOR+	4.50	%		0.00	%		4.61	%		2/28/2025		3,427,214		3,397,660		3,380,090
McAfee, LLC	Services: Business	Term Loan B		Loan	1M USD LIBOR+	3.75	%		0.00	%		3.86	%		9/30/2024		1,928,400		1,921,750		1,932,121
McGraw-Hill Global Education Holdings, LLC	Media: Advertising, Printing & Publishing	Term Loan B		Loan	3M USD LIBOR+	4.75	%		1.00	%		5.75	%		11/1/2024		2,544,391		2,364,344		2,538,666
Meredith Corporation	Media: Advertising, Printing & Publishing	Term Loan B2		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.61	%		1/31/2025		578,738		577,965		575,555
Mermaid Bidco Inc.	High Tech Industries	Term Loan 12/20		Loan	2M USD LIBOR+	4.25	%		0.75	%		5.00	%		12/1/2027		500,000		497,584		501,565
Messer Industries, LLC	Chemicals, Plastics, & Rubber	Term Loan B		Loan	3M USD LIBOR+	2.50	%		0.00	%		2.75	%		3/1/2026		3,944,962		3,923,644		3,942,003
Michaels Stores, Inc.	Retail	Term Loan B (9/20)		Loan	1M USD LIBOR+	3.50	%		0.75	%		4.25	%		10/1/2027		2,571,414		2,565,167		2,567,557
Midwest Physician Administrative Services LLC (Dupage Medical Group)	Healthcare & Pharmaceuticals	Term Loan (2/18)		Loan	1M USD LIBOR+	2.75	%		0.75	%		3.50	%		8/15/2024		961,003		958,186		960,522
Mitchell International, Inc.	Banking, Finance, Insurance & Real Estate	Term Loan (7/20)		Loan	1M USD LIBOR+	4.25	%		0.50	%		4.75	%		11/29/2024		997,500		944,391		1,000,991
MKS Instruments, Inc.	High Tech Industries	Term Loan B6		Loan	1M USD LIBOR+	1.75	%		0.00	%		1.86	%		2/2/2026		877,977		871,414		878,530
MLN US Holdco LLC	Telecommunications	Term Loan		Loan	1M USD LIBOR+	4.50	%		0.00	%		4.61	%		12/1/2025		980,000		978,728		913,605
MMM Holdings, Inc.	Healthcare & Pharmaceuticals	Term Loan B		Loan	6M USD LIBOR+	5.75	%		1.00	%		6.75	%		12/24/2026		6,724,026		6,605,313		6,730,347
MRC Global Inc.	Metals & Mining	Term Loan B2		Loan	1M USD LIBOR+	3.00	%		0.00	%		3.11	%		9/20/2024		484,961		484,234		477,687
Murphy USA Inc.	Retail	Murphy Oil USA T/L (Quick Chek)		Loan	1M USD LIBOR+	1.75	%		0.50	%		2.25	%		1/21/2028		250,000		249,384		250,938
MW Industries, Inc. (Helix Acquisition Holdings)	Capital Equipment	Term Loan (2019 Incremental)		Loan	3M USD LIBOR+	3.75	%		0.00	%		4.00	%		9/30/2024		2,842,097		2,802,381		2,740,265
Natgasoline LLC	Chemicals, Plastics, & Rubber	Term Loan		Loan	1M USD LIBOR+	3.50	%		0.00	%		3.63	%		11/14/2025		1,487,455		1,457,602		1,483,737
National Mentor Holdings, Inc.	Healthcare & Pharmaceuticals	National Mentor /Civitas (2/21) T/L C		Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%		2/17/2028		87,464		87,026		87,289
National Mentor Holdings, Inc.	Healthcare & Pharmaceuticals	Term Loan		Loan	1M USD LIBOR+	4.25	%		0.00	%		4.37	%		3/9/2026		1,880,666		1,866,176		1,878,014
National Mentor Holdings, Inc.	Healthcare & Pharmaceuticals	Term Loan C		Loan	3M USD LIBOR+	4.25	%		0.00	%		4.51	%		3/9/2026		86,065		85,428		85,943
National Mentor Holdings, Inc.	Healthcare & Pharmaceuticals	National Mentor/ Civitas (2/21) T/L		Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%		2/17/2028		2,623,907		2,610,787		2,618,659
National Mentor/ Civitas (2/21) DDTL (a)	Healthcare & Pharmaceuticals	National Mentor (Civitas) T/L B (2/19)		Loan	1M USD LIBOR+	4.25	%		0.00	%		4.37	%		3/9/2026		-		-		(577	)
NeuStar, Inc.	Telecommunications	Term Loan B4 (03/18)		Loan	3M USD LIBOR+	3.50	%		1.00	%		4.50	%		8/8/2024		2,641,566		2,611,256		2,542,032
NeuStar, Inc.	Telecommunications	Term Loan B-5		Loan	3M USD LIBOR+	4.50	%		1.00	%		5.50	%		8/8/2024		885,162		873,202		859,050

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
Nexstar Broadcasting, Inc. (Mission Broadcasting)	Media: Broadcasting & Subscription	Nexstar Broadcasting T/L B4 (6/19)		Loan	1M USD LIBOR+	2.75	%		0.00	%		2.87	%		9/18/2026		1,113,795		1,101,160			1,114,842
Next Level Apparel, Inc.	Retail	Term Loan		Loan	3M PL WIBOR+	6.00	%		1.00	%		7.00	%		8/9/2024		1,866,250		1,853,906			1,716,950
NM Z Parent Inc (Zep Inc)	Chemicals, Plastics, & Rubber	Term Loan		Loan	6M USD LIBOR+	4.00	%		1.00	%		5.00	%		8/9/2024		2,418,750		2,411,955			2,392,845
NorthPole Newco S.a.r.l	Aerospace & Defense	Term Loan		Loan	3M USD LIBOR+	7.00	%		0.00	%		7.25	%		3/3/2025		5,312,500		4,890,323			4,774,609
Novetta Solutions, LLC	Aerospace & Defense	Term Loan		Loan	3M USD LIBOR+	5.00	%		1.00	%		6.00	%		10/16/2022		1,899,870		1,894,609			1,889,193
Novetta Solutions, LLC	Aerospace & Defense	Second Lien Term Loan		Loan	3M USD LIBOR+	8.50	%		1.00	%		9.50	%		10/16/2023		1,000,000		995,635			997,500
NPC International, Inc. (b)	Beverage, Food & Tobacco	Term Loan		Loan	Prime+	4.50	%		1.00	%		7.75	%		4/19/2024		487,500		487,124			430,463
Nuvei Technologies Corp.	High Tech Industries	US Term Loan		Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%		9/29/2025		250,000		249,712			251,563
Owens & Minor	Healthcare & Pharmaceuticals	Term Loan B		Loan	1M USD LIBOR+	4.50	%		0.00	%		4.62	%		5/2/2025		487,500		481,151			488,631
Pacific Gas and Electric Company	Utilities: Electric	PG&E Corp T/L		Loan	1M USD LIBOR+	3.00	%		0.50	%		3.50	%		6/18/2025		1,494,994		1,487,395			1,499,195
PAE Holding Corp	Aerospace & Defense	Term Loan B (10/20)		Loan	3M USD LIBOR+	4.50	%		0.75	%		5.25	%		10/14/2027		2,000,000		1,971,195			2,009,160
Panther Guarantor II, L.P. (Forcepoint)	High Tech Industries	Panther Commercial T/L (1/21) (Forcepoint)		Loan	3M USD LIBOR+	4.50	%		0.50	%		4.71	%		1/7/2028		500,000		496,307			499,375
Pathway Partners Vet Management Company LLC	Services: Business	Term Loan		Loan	1M USD LIBOR+	3.75	%		0.00	%		3.86	%		3/31/2027		496,437		485,943			496,934
PaySafe Group PLC	Services: Business	Term Loan B1 (PI UK Holdco II)		Loan	1M USD LIBOR+	3.50	%		1.00	%		4.50	%		1/3/2025		1,458,750		1,453,593			1,457,320
PCI Gaming Authority	Hotel, Gaming & Leisure	Term Loan		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.61	%		5/29/2026		878,269		874,719			876,803
Penn National Gaming	Hotel, Gaming & Leisure	Term Loan B-1		Loan	1M USD LIBOR+	2.25	%		0.75	%		3.00	%		10/15/2025		1,782,979		1,722,678			1,780,109
Peraton Corp.	Aerospace & Defense	Peraton T/L B		Loan	6M USD LIBOR+	3.75	%		0.75	%		4.50	%		2/22/2028		1,811,655		1,802,597			1,818,449
Peraton Corp. (a)	Aerospace & Defense	Unfunded Commitment		Loan	6M USD LIBOR+	3.75	%		0.75	%		4.50	%		2/1/2028		-		(15,942	)		11,956
PGX Holdings, Inc.	Services: Consumer	Term Loan		Loan	12M USD LIBOR+	5.25	%		1.00	%		6.25	%		9/29/2023		3,149,230		3,127,880			2,998,508
Pitney Bowes Inc	Services: Business	Term Loan B		Loan	1M USD LIBOR+	5.50	%		0.00	%		5.62	%		1/7/2025		2,887,500		2,625,587			2,875,459
Pixelle Specialty Solutions LLC	Forest Products & Paper	Term Loan		Loan	1M USD LIBOR+	6.50	%		1.00	%		7.50	%		10/31/2024		3,535,026		3,510,411			3,531,491
Plastipak Holdings Inc.	Containers, Packaging & Glass	Plastipak Packaging T/L B (04/18)		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.62	%		10/14/2024		2,789,599		2,771,753			2,788,288
Playtika Holding Corp.	High Tech Industries	Trm Loan B (12/19)		Loan	6M USD LIBOR+	6.00	%		1.00	%		7.00	%		12/10/2024		2,837,975		2,793,084			2,850,746
PointClickCare Technologies, Inc.	High Tech Industries	Term Loan B		Loan	6M USD LIBOR+	3.00	%		0.75	%		3.75	%		12/15/2027		500,000		497,597			502,500
Polymer Process Holdings, Inc.	Containers, Packaging & Glass	Term Loan		Loan	1M USD LIBOR+	4.75	%		0.75	%		5.50	%		2/12/2028		5,000,000		4,932,905			4,950,000
PPD, Inc.	Healthcare & Pharmaceuticals	Term Loan (12/20)		Loan	1M USD LIBOR+	2.25	%		0.50	%		2.75	%		1/13/2028		500,000		497,556			501,530
Pre-Paid Legal Services, Inc.	Services: Business	Incremental Term Loan		Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%		5/1/2025		997,500		983,807			1,001,869
Presidio, Inc.	Services: Business	Term Loan B (1/20)		Loan	3M USD LIBOR+	3.50	%		0.00	%		3.72	%		1/22/2027		497,500		496,508			498,120

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
Prime Security Services Borrower, LLC (ADT)	Services: Consumer	Term Loan (1/21)		Loan	12M USD LIBOR+	2.75	%		0.75	%		3.50	%		9/23/2026		3,583,174		3,568,406		3,585,178
Priority Payment Systems LLC	High Tech Industries	Term Loan		Loan	1M USD LIBOR+	6.50	%		1.00	%		7.50	%		1/3/2023		1,690,068		1,685,378		1,681,615
PriSo Acquisition Corporation	Construction & Building	Park River Holdings T/L (01/21)		Loan	3M USD LIBOR+	3.25	%		0.75	%		4.00	%		12/28/2027		500,000		497,500		500,535
Project Leopard T/L (Kofax)	High Tech Industries	Term Loan		Loan	3M USD LIBOR+	5.05	%		1.00	%		5.25	%		7/8/2024		500,000		498,750		500,468
Prometric Inc. (Sarbacane Bidco)	Services: Consumer	Term Loan		Loan	1M USD LIBOR+	3.00	%		1.00	%		4.00	%		1/29/2025		486,338		484,893		472,961
PUG LLC	Services: Consumer	Term Loan B (02/20)		Loan	1M USD LIBOR+	3.50	%		0.00	%		3.61	%		2/12/2027		490,025		487,871		475,323
Rackspace Technology Global, Inc.	High Tech Industries	Rackspace Technology Global T/L B		Loan	3M USD LIBOR+	2.75	%		0.75	%		3.50	%		2/2/2028		500,000		497,527		499,615
Radiology Partners Holdings, LLC	Healthcare & Pharmaceuticals	Term Loan		Loan	1M USD LIBOR+	4.25	%		0.00	%		4.37	%		7/4/2025		1,432,727		1,427,557		1,426,466
Ravago Holdings America	Chemicals, Plastics, & Rubber	Ravago (2/21) T/L		Loan	6M USD LIBOR+	2.50	%		0.00	%		2.75	%		2/9/2028		1,000,000		997,500		999,380
RealPage, Inc.	High Tech Industries	RealPage T/L (2/21)		Loan	1M USD LIBOR+	3.25	%		0.50	%		3.38	%		2/17/2028		3,000,000		2,992,500		3,001,260
Redstone Buyer, LLC	High Tech Industries	Term Loan		Loan	3M USD LIBOR+	5.00	%		1.00	%		6.00	%		9/1/2027		997,500		979,386		1,009,141
Renaissance Learning T/L (5/18)	Services: Consumer	Term Loan		Loan	1M USD LIBOR+	3.25	%		0.00	%		3.36	%		5/30/2025		3,000,000		2,970,900		2,968,740
Rent-A-Center, Inc.	Retail	Rent-A-Center T/L B (01/21)		Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%		1/17/2028		500,000		497,500		503,125
REP WWEX (Worldwide Express) Aquisition Parent, LLC	Transportation: Consumer	Term Loan B		Loan	6M USD LIBOR+	4.00	%		1.00	%		5.00	%		2/2/2024		1,927,839		1,926,592		1,932,658
Research Now Group, Inc	Media: Advertising, Printing & Publishing	Term Loan		Loan	6M USD LIBOR+	5.50	%		1.00	%		6.50	%		12/20/2024		3,887,330		3,796,436		3,881,499
Resideo Funding Inc.	Services: Consumer	Resideo Funding T/L (1/21) (Resideo Technologies)		Loan	3M USD LIBOR+	2.25	%		0.50	%		2.75	%		2/11/2028		1,500,000		1,496,250		1,496,250
Resolute Investment Managers (American Beacon), Inc.	Banking, Finance, Insurance & Real Estate	Term Loan (10/20)		Loan	3M USD LIBOR+	3.75	%		1.00	%		4.75	%		4/30/2024		2,651,324		2,651,324		2,657,952
Rexnord LLC	Capital Equipment	Term Loan (11/19)		Loan	1M USD LIBOR+	1.75	%		0.00	%		1.86	%		8/21/2024		862,069		862,069		860,724
Reynolds Consumer Products LLC	Containers, Packaging & Glass	Reynolds Consumer Products T/L		Loan	1M USD LIBOR+	1.75	%		0.00	%		1.86	%		1/29/2027		1,306,932		1,305,639		1,307,912
Reynolds Group Holdings Inc.	Metals & Mining	Term Loan B2		Loan	1M USD LIBOR+	3.25	%		0.00	%		3.36	%		2/5/2026		2,000,000		1,986,099		1,991,660
Robertshaw US Holding Corp.	Consumer goods: Durable	Term Loan B		Loan	1M USD LIBOR+	3.50	%		1.00	%		4.50	%		2/28/2025		972,500		970,927		916,581
Rocket Software, Inc.	High Tech Industries	Term Loan (11/18)		Loan	1M USD LIBOR+	4.25	%		0.00	%		4.36	%		11/28/2025		2,935,063		2,925,286		2,939,114
RP Crown Parent, LLC	High Tech Industries	Term Loan B (07/20)		Loan	1M USD LIBOR+	3.00	%		1.00	%		4.00	%		1/31/2026		1,990,000		1,981,157		1,992,488
Russell Investments US Inst’l Holdco, Inc.	Banking, Finance, Insurance & Real Estate	Term Loan (10/20)		Loan	6M USD LIBOR+	3.00	%		1.00	%		4.00	%		6/2/2025		5,637,965		5,591,015		5,648,565
RV Retailer LLC	Automotive	RVR Dealership Holdings T/L (RV Retailer)		Loan	3M USD LIBOR+	4.00	%		0.75	%		4.75	%		1/28/2028		2,000,000		1,980,404		1,992,500
Ryan Specialty Group LLC	Banking, Finance, Insurance & Real Estate	Term Loan		Loan	1M USD LIBOR+	3.25	%		0.75	%		4.00	%		9/1/2027		498,750		491,823		499,373
Sally Holdings LLC	Retail	Term Loan B		Loan	1M USD LIBOR+	2.25	%		0.00	%		2.37	%		7/5/2024		768,409		766,247		768,409
Samsonite International S.A.	Consumer goods: Non-durable	Term Loan B2		Loan	1M USD LIBOR+	4.50	%		1.00	%		5.50	%		4/25/2025		995,000		968,936		1,002,463
Savage Enterprises, LLC	Energy: Oil & Gas	Term Loan B (02/20)		Loan	1M USD LIBOR+	3.00	%		0.00	%		3.12	%		8/1/2025		1,769,504		1,754,769		1,771,999

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	Schweitzer-Mauduit T/L B		Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%		1/27/2028		1,000,000		990,000		997,500
Seadrill Operating LP (b)	Energy: Oil & Gas	PIK Revolver		Loan	1M USD LIBOR+	0.00	%		1.00	%		1.00	%		3/31/2021		25,683		25,656		27,224
Seadrill Operating LP (b)	Energy: Oil & Gas	Term Loan B		Loan	1M USD LIBOR+	8.00	%		1.00	%		9.00	%		3/31/2021		897,442		897,442		86,379
Shutterfly Inc	Media: Advertising, Printing & Publishing	Term Loan B		Loan	3M USD LIBOR+	6.00	%		1.00	%		7.00	%		9/25/2026		800,968		767,474		803,403
Sirius Computer Solutions, Inc.	High Tech Industries	Term Loan 1/20		Loan	1M USD LIBOR+	3.50	%		0.00	%		3.61	%		7/1/2026		1,970,100		1,966,584		1,970,809
SMG US Midco 2, Inc.	Services: Business	Term Loan (01/20)		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.61	%		1/23/2025		495,000		495,000		470,869
Sotheby’s	Services: Business	Term Loan (1/21)		Loan	3M USD LIBOR+	4.75	%		0.75	%		5.50	%		1/15/2027		3,289,283		3,230,819		3,312,571
Specialty Pharma III Inc.	Services: Business	Term Loan		Loan	1M USD LIBOR+	4.50	%		0.75	%		5.25	%		2/24/2028		2,000,000		1,980,000		1,980,000
Spectrum Brands, Inc.	Consumer goods: Durable	Spectrum Brands T/L (2/21)		Loan	1M USD LIBOR+	2.00	%		0.50	%		2.50	%		2/19/2028		500,000		498,750		501,250
SRAM, LLC	Consumer goods: Durable	Term Loan		Loan	1M USD LIBOR+	2.75	%		1.00	%		3.75	%		3/15/2024		2,221,329		2,219,239		2,225,505
SS&C Technologies, Inc.	Services: Business	Term Loan B4		Loan	1M USD LIBOR+	1.75	%		0.00	%		1.86	%		4/16/2025		178,883		178,618		178,212
SS&C Technologies, Inc.	Services: Business	Term Loan B-5		Loan	1M USD LIBOR+	1.75	%		0.00	%		1.86	%		4/16/2025		488,567		487,746		486,735
SS&C Technologies, Inc.	Services: Business	Term Loan B3		Loan	1M USD LIBOR+	1.75	%		0.00	%		1.86	%		4/16/2025		234,915		234,561		234,034
Staples, Inc.	Wholesale	Term Loan (03/19)		Loan	3M USD LIBOR+	5.00	%		0.00	%		5.21	%		4/16/2026		4,431,567		4,285,772		4,340,853
Stats LLC	Hotel, Gaming & Leisure	Term Loan		Loan	3M USD LIBOR+	5.25	%		0.00	%		5.45	%		7/10/2026		1,980,000		1,940,067		1,972,575
Storable, Inc	High Tech Industries	Term Loan B		Loan	1M USD LIBOR+	3.25	%		0.50	%		3.75	%		2/26/2028		500,000		498,750		500,000
Syncsort Incorporated	High Tech Industries	Term Loan (1/21)		Loan	3M USD LIBOR+	4.75	%		0.75	%		5.50	%		8/16/2024		1,935,450		1,922,522		1,939,476
Teneo Holdings LLC	Banking, Finance, Insurance & Real Estate	Term Loan		Loan	1M USD LIBOR+	5.25	%		1.00	%		6.25	%		7/15/2025		2,468,750		2,392,146		2,471,836
Tenneco Inc	Capital Equipment	Term Loan B		Loan	1M USD LIBOR+	3.00	%		0.00	%		3.11	%		10/1/2025		1,470,000		1,459,901		1,440,233
Ten-X, LLC	Banking, Finance, Insurance & Real Estate	Term Loan		Loan	1M USD LIBOR+	4.00	%		1.00	%		5.00	%		9/27/2024		1,940,000		1,938,385		1,841,390
The Octave Music Group, Inc (Touchtunes)	Services: Business	Term Loan B		Loan	1M USD LIBOR+	5.25	%		1.00	%		6.25	%		5/29/2025		3,896,552		3,862,705		3,584,828
Thor Industries, Inc.	Automotive	Term Loan (USD)		Loan	1M USD LIBOR+	3.75	%		0.00	%		3.88	%		2/1/2026		2,935,080		2,874,260		2,937,839
Tivity Health, Inc.	Healthcare & Pharmaceuticals	Term Loan A		Loan	1M USD LIBOR+	4.25	%		0.00	%		4.36	%		3/7/2024		558,772		555,085		556,677
Tivity Health, Inc.	Healthcare & Pharmaceuticals	Term Loan B		Loan	1M USD LIBOR+	5.25	%		0.00	%		5.36	%		3/6/2026		1,064,955		1,044,356		1,060,461
Tosca Services, LLC	Containers, Packaging & Glass	Term Loan (2/21)		Loan	1M USD LIBOR+	3.50	%		0.75	%		4.25	%		8/18/2027		500,000		493,032		501,565

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
Transdigm, Inc.	Aerospace & Defense	Term Loan G (02/20)		Loan	1M USD LIBOR+	2.25	%		0.00	%		2.36	%		8/22/2024		4,065,230		4,068,753		4,014,415
Travel Leaders Group, LLC	Hotel, Gaming & Leisure	Term Loan B (08/18)		Loan	1M USD LIBOR+	4.00	%		0.00	%		4.11	%		1/25/2024		2,437,500		2,435,050		2,268,411
TRC Companies, Inc.	Services: Business	Term Loan		Loan	1M USD LIBOR+	3.50	%		1.00	%		4.50	%		6/21/2024		3,315,141		3,307,088		3,311,826
TRC Companies, Inc.	Services: Business	TRC Companies T/L (1/21)		Loan	1M USD LIBOR+	4.50	%		0.75	%		5.25	%		6/21/2024		2,479,433		2,468,047		2,485,631
Trico Group LLC	Automotive	Term Loan B-3		Loan	3M USD LIBOR+	7.50	%		1.00	%		8.50	%		2/2/2024		5,070,478		4,962,793		5,150,338
Trident LS Merger Sub Corporation	Services: Consumer	Term Loan (03/18)		Loan	1M USD LIBOR+	3.25	%		0.00	%		3.36	%		5/1/2025		2,000,000		2,004,987		1,999,500
Truck Hero, Inc.	Transportation: Cargo	Term Loan (1/21)		Loan	1M USD LIBOR+	3.75	%		0.75	%		4.50	%		1/29/2028		1,500,000		1,500,000		1,501,065
TruGreen Limited Partnership	Services: Consumer	Term Loan		Loan	1M USD LIBOR+	4.00	%		0.75	%		4.75	%		10/29/2027		973,980		966,347		980,068
Twin River Worldwide Holdings, Inc.	Hotel, Gaming & Leisure	Term Loan B		Loan	3M USD LIBOR+	2.75	%		0.00	%		3.00	%		5/10/2026		985,000		981,152		975,889
Uber Technologies T/L B (2/21)	Transportation: Consumer	Term Loan		Loan	1M USD LIBOR+	3.50	%		0.00	%		3.62	%		7/13/2023		1,989,610		1,941,468		1,992,097
Ultimate Software Group, Inc. (The)	High Tech Industries	Term Loan 1/21		Loan	3M USD LIBOR+	3.25	%		0.75	%		4.00	%		5/4/2026		1,000,000		1,000,000		1,005,690
Unimin Corporation	Metals & Mining	Term Loan (12/20)		Loan	3M USD LIBOR+	4.00	%		1.00	%		5.00	%		7/31/2026		496,815		466,608		476,232
United Natural Foods, Inc	Beverage, Food & Tobacco	Term Loan B		Loan	1M USD LIBOR+	3.50	%		0.00	%		3.61	%		10/22/2025		1,973,611		1,879,449		1,978,545
United Road Services Inc.	Transportation: Cargo	Term Loan (10/17)		Loan	6M USD LIBOR+	5.75	%		1.00	%		6.75	%		9/1/2024		952,506		944,697		880,592
Univar Inc.	Chemicals, Plastics, & Rubber	Term Loan B3 (11/17)		Loan	1M USD LIBOR+	2.25	%		0.00	%		2.36	%		7/1/2024		1,627,723		1,623,316		1,628,602
Univision Communications Inc.	Media: Broadcasting & Subscription	2020 Replacement Term Loan		Loan	1M USD LIBOR+	3.75	%		1.00	%		4.75	%		3/13/2026		2,517,037		2,508,528		2,527,433
US Ecology, Inc.	Environmental Industries	Term Loan B		Loan	1M USD LIBOR+	2.50	%		0.00	%		2.61	%		11/2/2026		495,000		494,095		496,445
Utz Quality Foods, LLC	Beverage, Food & Tobacco	Term Loan B		Loan	1M USD LIBOR+	3.00	%		0.00	%		3.11	%		1/13/2028		100,000		99,764		100,464
Verifone Systems, Inc.	Banking, Finance, Insurance & Real Estate	Term Loan (7/18)		Loan	3M USD LIBOR+	4.00	%		0.00	%		4.18	%		8/20/2025		1,396,606		1,389,850		1,362,571
VFH Parent LLC	Banking, Finance, Insurance & Real Estate	Term Loan B		Loan	1M USD LIBOR+	3.00	%		0.00	%		3.11	%		3/1/2026		3,209,493		3,199,747		3,215,526
Virence Intermediate Holdings LLC (Athenahealth / VVC Holding)	Healthcare & Pharmaceuticals	Athenahealth T/L B (01/21)		Loan	3M USD LIBOR+	4.25	%		0.00	%		4.45	%		2/11/2026		3,965,000		3,935,495		3,986,570
Virtus Investment Partners, Inc.	Banking, Finance, Insurance & Real Estate	Term Loan B		Loan	6M USD LIBOR+	2.25	%		0.75	%		3.00	%		6/3/2024		2,406,176		2,405,891		2,407,692
Vistra Energy Corp	Utilities: Electric	2018 Incremental Term Loan		Loan	1M USD LIBOR+	1.75	%		0.00	%		1.86	%		12/31/2025		917,338		916,645		913,751
Vizient, Inc	Healthcare & Pharmaceuticals	Term Loan B-6		Loan	1M USD LIBOR+	2.00	%		0.00	%		2.11	%		5/6/2026		491,250		490,388		490,430
VM Consolidated, Inc.	Construction & Building	Term Loan B1 (02/20)		Loan	1M USD LIBOR+	3.25	%		0.00	%		3.36	%		2/28/2025		475,444		473,957		475,344
Vouvray US Finance LLC	High Tech Industries	Term Loan		Loan	1M USD LIBOR+	3.00	%		1.00	%		4.00	%		3/11/2024		481,250		481,250		417,605

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
Warner Music Group Corp. (WMG Acquisition Corp.)	Hotel, Gaming & Leisure	Term Loan G		Loan	1M USD LIBOR+	2.13	%		0.00	%		2.24	%		1/20/2028		250,000		249,702		250,403
Wastequip, LLC (HPCC Merger/Patriot Container)	Environmental Industries	Term Loan (3/18)		Loan	1M USD LIBOR+	3.50	%		1.00	%		4.50	%		3/15/2025		494,911		492,859		492,436
WeddingWire, Inc.	Services: Consumer	Term Loan		Loan	2M USD LIBOR+	4.50	%		0.00	%		4.66	%		12/19/2025		3,920,000		3,914,114		3,875,900
West Corporation	Telecommunications	Term Loan B		Loan	1M USD LIBOR+	3.50	%		1.00	%		4.50	%		10/10/2024		2,931,109		2,874,412		2,866,742
West Corporation	Telecommunications	Term Loan B (Olympus Merger)		Loan	3M USD LIBOR+	4.00	%		1.00	%		5.00	%		10/10/2024		1,224,748		1,166,274		1,207,062
Western Dental Services, Inc.	Retail	Term Loan (12/18)		Loan	1M USD LIBOR+	5.25	%		1.00	%		6.25	%		6/30/2023		424,019		424,421		416,598
Western Digital Corporation	High Tech Industries	Term Loan B-4		Loan	1M USD LIBOR+	1.75	%		0.00	%		1.86	%		4/29/2023		743,135		732,963		742,867
Wirepath LLC	Consumer goods: Non-durable	Term Loan		Loan	3M USD LIBOR+	4.00	%		0.00	%		4.25	%		8/5/2024		2,925,193		2,906,978		2,897,170
WP CITYMD BIDCO LLC	Services: Consumer	Term Loan B (1/21)		Loan	6M USD LIBOR+	3.75	%		0.75	%		4.50	%		8/13/2026		3,465,000		3,437,657		3,471,791
Xperi Corporation	High Tech Industries	Term Loan		Loan	1M USD LIBOR+	4.00	%		0.00	%		4.11	%		6/1/2025		2,854,798		2,706,612		2,874,439
Zekelman Industries, Inc.	Metals & Mining	Term Loan (01/20)		Loan	1M USD LIBOR+	2.00	%		0.00	%		2.11	%		1/25/2027		970,775		970,775		968,551
																		$	595,249,474	$	592,020,041

	Number of Shares		Cost		Fair Value
Cash and cash equivalents
U.S. Bank Money Market (c)		114,145,406	$	114,145,406	$	114,145,406
Total cash and cash equivalents		114,145,406	$	114,145,406	$	114,145,406

(a)	All or a portion of this investment has an unfunded commitment as of February 28, 2021

(b)	As of February 28, 2021, the investment was in default and on non-accrual status.

(c)	Included within cash and cash equivalents in Saratoga CLO’s Statements of Assets and Liabilities as of February 28, 2021.

LIBOR—London Interbank Offered Rate

1W USD LIBOR—The 1 week USD LIBOR rate as of February 28, 2021 was 0.09%.

1M USD LIBOR—The 1 month USD LIBOR rate as of February 28, 2021 was 0.12%.

2M USD LIBOR—The 2 month USD LIBOR rate as of February 28, 2021 was 0.15%.

3M USD LIBOR—The 3 month USD LIBOR rate as of February 28, 2021 was 0.19%.

6M USD LIBOR—The 6 month USD LIBOR rate as of February 28, 2021 was 0.20%.

12M USD LIBOR - The 12 month USD LIBOR rate as of February 28, 2021 was 0.28%

3M PL WIBOR - The 3 month PL WIBOR rate as of February 28, 2021, was 0.21%

Prime—The Prime Rate as of February 28, 2021 was 3.25%.

Note 5. Income Taxes

SIA-Avionte, Inc., SIA-AX., SIA-GH Inc., SIA-MAC, Inc., SIA-PEP 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 income 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.

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 November 30, 2021 and February 28, 2021 were as follows:

	November 30, 2021			February 28, 2021
Total deferred tax assets	$	2,115,306		$	2,108,556
Total deferred tax liabilities		(1,065,509	)		(1,987,120	)
Valuation allowance on net deferred tax assets		(2,103,360	)		(2,044,100	)
Net deferred tax liability	$	(1,053,564	)	$	(1,922,664	)

As of November 30, 2021, the valuation allowance on deferred tax assets was $2.1 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 November 30, 2021 includes $2.5 million deferred tax benefit on net change in unrealized appreciation on investments, $2.4 million income tax provision from realized gain on investments and $(0.04) million net change in total operating expense, in the consolidated statement of operations, respectively. Net deferred tax (benefit) expense for the three months ended November 30, 2020 includes $0.2 million net change in unrealized appreciation (depreciation) on investments and $0.0 million net change in total operating expense, in the consolidated statement of operations, respectively.

Net income tax expense for the nine months ended November 30, 2021 includes $0.9 million deferred tax benefit on net change in unrealized appreciation on investments, $2.9 million income tax provision from realized gain on investments and $0.02 million net change in total operating expense, in the consolidated statement of operations, respectively. Net deferred tax (benefit) expense for the nine months ended November 30, 2020 includes $0.1 million net change in unrealized appreciation (depreciation) on investments and $0.0 million net change in total operating expense, in the consolidated statement of operations, respectively.

Deferred tax temporary differences may include differences for state taxes and joint venture interests.

Federal and state income tax provisions (benefits) on investments for three and nine months ended November 30, 2021 and November 30, 2020:

	For the three months ended					For the nine months ended
	November 30, 2021			November 30, 2020		November 30, 2021			November 30, 2020
Current
Federal	$	2,157,212		$	-	$	2,583,041		$	-
State		289,961			-		340,655			-
Net current expense		2,447,173			-		2,923,696			-
Deferred
Federal		(1,916,842	)		195,652		(677,986	)		24,814
State		(604,143	)		44,153		(253,182	)		62,328
Net deferred expense		(2,520,985	)		239,805		(931,168	)		87,142
Net tax provision	$	(73,812	)	$	239,805	$	1,992,528		$	87,142

Note 6. Agreements and Related Party Transactions

Investment Advisory and Management Agreement

On July 30, 2010, the Company entered into the Management Agreement with our Manager. The initial term of the Management Agreement was two years 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 6, 2021, our board of directors approved the renewal of the Management Agreement for an additional one-year term. Pursuant to the Management Agreement, our Manager implements our business strategy on a day-to-day basis and performs certain services for us, subject to oversight by our board of directors. Our Manager is responsible for, among other duties, determining investment criteria, sourcing, analyzing and executing investments transactions, asset sales, financings and performing asset management duties. Under the Management Agreement, we have agreed to pay our Manager a management fee for investment advisory and management services consisting of a base management fee and an incentive management fee.

Base Management Fee and Incentive Management Fee

The base management fee of 1.75% per year is calculated based on the average value of our gross assets (other than cash or cash equivalents, but including assets purchased with borrowed funds) at the end of the two most recently completed fiscal quarters. The base management fee is paid quarterly following the filing of the most recent 10-Q.

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 November 30, 2021 and November 30, 2020, the Company incurred $2.9 million and $2.3 million in base management fees, respectively. For the three months ended November 30, 2021 and November 30, 2020, the Company incurred $1.5 million and $1.2 million in incentive fees related to pre-incentive fee net investment income, respectively. For the three months ended November 30, 2021 and November 30, 2020, the Company accrued an expense of $0.9 million and an expense of $1.1 million in incentive fees related to capital gains.

For the nine months ended November 30, 2021 and November 30, 2020, the Company incurred $8.7 million and $6.7 million in base management fees, respectively. For the nine months ended November 30, 2021 and November 30, 2020, the Company incurred $4.8 million and $4.0 million in incentive fees related to pre-incentive fee net investment income, respectively. For the nine months ended November 30, 2021 and November 30, 2020, the Company accrued an expense of $4.9 million and an (benefit) of $(2.0) 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 November 30, 2021, the base management fees accrual was $3.0 million and the incentive fees accrual was $9.2 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities. As of February 28, 2021, the base management fees accrual was $2.4 million and the incentive fees accrual was $13.8 million and is included in base management and incentive fees payable in the accompanying consolidated statements of assets and liabilities.

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.

For the three months ended November 30, 2021 and November 30, 2020, 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 nine months ended November 30, 2021 and November 30, 2020, we recognized $2.2 million and $1.9 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 November 30, 2021, $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, 2021, $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 August 7, 2018, the Company entered into an unsecured loan agreement with CLO 2013-1 Warehouse, a wholly owned subsidiary of Saratoga CLO, pursuant to which CLO 2013-1 Warehouse may borrow from time to time up to $25 million from the Company in order to provide capital necessary to support warehouse activities. The CLO 2013-1 Warehouse Loan, which expired on February 7, 2020, bore interest at an annual rate of 3M USD LIBOR + 7.5%.

On December 14, 2018, the Company completed the third refinancing and issuance of the 2013-1 Reset CLO Notes. This refinancing, among other things, extended the Saratoga CLO reinvestment period to January 2021, and extended its legal maturity to January 2030. A non-call period ending January 2020 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $300 million in assets to approximately $500 million. As part of this refinancing and upsizing, the Company invested an additional $13.8 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $2.5 million in aggregate principal amount of the Class F-R-2 Notes tranche and $7.5 million in aggregate principal amount of the Class G-R-2 Notes tranche at par. Concurrently, the existing $4.5 million of Class F notes and $20.0 million CLO 2013-1 Warehouse Loan were repaid. The Company also paid $2.0 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. During the year ended February 29, 2020, the Company received full payment of $1.7 million from the Saratoga CLO for such transaction costs.

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. A non-call period ending February 2022 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. At August 31, 2021, the outstanding receivable of 2.6 million was repaid in full.

For the three months ended November 30, 2021 and November 30, 2020, we recognized management fee income of $0.8 million and $0.6 million, respectively, related to the Saratoga CLO.

For the nine months ended November 30, 2021 and November 30, 2020, we recognized management fee income of $2.4 million and $1.9 million, respectively, related to the Saratoga CLO.

For the nine months ended November 30, 2021 and November 30, 2020, the Company neither bought nor sold any investments from the Saratoga CLO.

Note 7. Borrowings

Credit Facility

As a BDC, we are only allowed to employ leverage to the extent that our asset coverage, as defined in the 1940 Act, equals at least 200% 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 non-interested board of 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 236.7% as of November 30, 2021 and 347.1% as of February 28, 2021.

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:

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expand the borrowing capacity under the Madison Credit Facility from $40.0 million to $45.0 million;

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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:

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extend the commitment termination date from February 24, 2015 to September 17, 2017;

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extend the maturity date of the Madison Credit Facility from February 24, 2020 to September 17, 2022 (unless terminated sooner upon certain events);

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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:

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extend the commitment termination date from September 17, 2017 to September 17, 2020;

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extend the final maturity date of the Madison Credit Facility from September 17, 2022 to September 17, 2025 (unless terminated sooner upon certain events);

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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:

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permit certain amendments related to the Paycheck Protection Program (“Permitted PPP Amendment”) to Loan Asset Documents;

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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

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exclude such Permitted PPP Amendments from constituting a Material Modification.

On September 14, 2020, we entered into a fifth amendment to the Madison Credit Facility to, among other things:

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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.

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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:

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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.

In addition to any fees or other amounts payable under the terms of the Madison Credit Facility, an administrative agent fee per annum equal to $0.1 million is payable in equal monthly installments in arrears.

On October 4, 2021, the Company entered 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. 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 November 30, 2021 and February 28, 2021, there were $12.5 million and $0.0 million outstanding under the Encina Credit Facility. As of November 30, 2021 and February 28, 2021, there were no amounts outstanding under the Madison Credit Facility. During the applicable periods, the Company was in compliance with all of the limitations and requirements of both facilities. Financing costs of $1.4 million related to the Encina Credit Facility have been capitalized and are being amortized over the term of the facility.

For the three months ended November 30, 2021 and November 30, 2020, we recorded $0.2 million and $0.1 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 November 30, 2021 and November 30, 2020, we recorded $0.08 million and $0.03 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 November 30, 2021, the weighted average interest rate on the outstanding borrowings under the Encina Credit Facility and the Madison Credit Facility was 4.94%, and the average dollar amount of outstanding borrowings under the Encina Credit Facility and the Madison Credit Facility was $9.2 million.

For the nine months ended November 30, 2021 and November 30, 2020, we recorded $0.6 million and $0.3 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 nine months ended November 30, 2021 and November 30, 2020, 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 nine months ended November 30, 2021, the weighted average interest rate on the outstanding borrowings under the Encina Credit Facility and the Madison Credit Facility was 5.47%, and the average dollar amount of outstanding borrowings under the Encina Credit Facility and the Madison Credit Facility was $7.4 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. The Encina Credit Facility has a three-year term. 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. Funds may be borrowed at the greater of the prevailing one-month LIBOR rate and 0.75%, plus an applicable margin of 4.00%. In addition, 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.

Our borrowing base under the Encina Credit Facility was $51.2 million subject to the Encina Credit Facility cap of $50.0 million at November 30, 2021. For purposes of determining the borrowing base, most assets are assigned the values set forth in our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission (“SEC”). Accordingly, the November 30, 2021 borrowing base relies upon the valuations set forth in the Quarterly Report on Form 10-Q for the period ended August 31, 2021. 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. The new license provides up to $175.0 million in additional long-term capital in the form of SBA debentures. As a result of the 2016 omnibus spending bill signed into law in December 2015, the maximum amount of SBA-guaranteed debentures that affiliated SBIC funds can have outstanding was increased from $225.0 million to $350.0 million, 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 November 30, 2021, 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 $207.0 million in SBA-guaranteed debentures outstanding, of which $108.0 million is held in SBIC LP and $99.0 million held in SBIC II LP. SBA debentures are non-recourse to us, have a 10-year maturity, and may be prepaid at any time without penalty. The interest rate of SBA debentures is fixed at the time of issuance, often referred to as pooling, at a market-driven spread over 10-year U.S. Treasury Notes. SBA current regulations limit the amount that SBIC LP and SBIC II LP may borrow to a maximum of $150.0 million and $175.0 million, respectively, which is up to twice its potential regulatory capital.

SBICs are designed to stimulate the flow of private equity capital to eligible small businesses. Under SBA regulations, SBICs may make loans to eligible small businesses and invest in the equity securities of small businesses. Under present SBA regulations, eligible small businesses include businesses that have a tangible net worth not exceeding $19.5 million and have average annual fully taxed net income not exceeding $6.5 million for the two most recent fiscal years. In addition, an SBIC must devote 25.0% of its investment activity to “smaller 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 non-interested board of directors of the Company approved of the Company becoming subject to a minimum asset coverage ratio of 150.0% from 200% under Sections 18(a)(1) and 18(a)(2) of the 1940 Act. The 150.0% asset coverage ratio became effective on April 16, 2019.

As noted above, as of November 30, 2021, there was $207.0 million of SBA debentures outstanding and as of February 28, 2021, there was $158.0 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 $3.7 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 November 30, 2021 and November 30, 2020, we recorded $1.1 million and $1.3 million of interest expense related to the SBA debentures, respectively. For the three months ended November 30, 2021 and November 30, 2020, 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 November 30, 2021 and November 30, 2020 on the outstanding borrowings of the SBA debentures was 2.44% and 2.97%, respectively. During the three months ended November 30, 2021 and November 30, 2020, the average dollar amount of SBA debentures outstanding was $176.6 million and $170.3 million, respectively.

For the nine months ended November 30, 2021 and November 30, 2020, we recorded $3.4 million and $3.8 million of interest expense related to the SBA debentures, respectively. For the nine months ended November 30, 2021 and November 30, 2020, we recorded $0.5 million and $0.5 million of amortization of deferred financing costs related to the SBA debentures, respectively. Interest expense and amortization of deferred financing costs are reported as interest and debt financing expense on the consolidated statements of operations. The weighted average interest rate during the nine months ended November 30, 2021 and November 30, 2020 on the outstanding borrowings of the SBA debentures was 2.66% and 4.57%, respectively. During the nine months ended November 30, 2021 and November 30, 2020, the average dollar amount of SBA debentures outstanding was $172.0 million and $165.9 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 NYSE.

On May 29, 2015, the Company entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which the Company may offer for sale, from time to time, up to $20.0 million in aggregate principal amount of the 2020 Notes through an At-the-Market (“ATM”) offering. Prior to the 2020 Notes being redeemed in full, the Company had sold 539,725 bonds with a principal of $13.5 million at an average price of $25.31 for aggregate net proceeds of $13.4 million (net of transaction costs).

On December 21, 2016, the Company issued $74.5 million in aggregate principal amount of our 6.75% fixed-rate notes due 2023 (the “2023 Notes”) for net proceeds of $71.7 million after deducting underwriting commissions of approximately $2.3 million and offering costs of approximately $0.5 million. The 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 issued and outstanding 2023 Notes. The 2023 Notes were listed on the NYSE under the trading symbol “SAB” with a par value of $25.00 per share, and have been delisted following the redemption.

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 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 are being 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 issued and outstanding 6.25% 2025 Notes at par ($25 per note), plus the accrued and unpaid interest thereon, through, but excluding, the redemption date of August 31, 2021. The 6.25% 2025 Notes were listed on the NYSE under the trading symbol of “SAF” and have been delisted effective as of August 31, 2021, following the full redemption.

At August 31, 2021, the debt was extinguished. As such, it was not fair valued with market quotes and is not fair value leveled. As of February 28, 2021, the carrying amount and fair value of the 6.25% 2025 Notes was $60.0 million and $61.2 million, respectively. The 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 November 30, 2021 and November 30, 2020, 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 November 30, 2021 and November 30, 2020, the average dollar amount of 6.25% 2025 Notes outstanding was $0.00 million and $60.0 million, respectively.

For the nine months ended November 30, 2021 and November 30, 2020, we recorded $1.9 million and $2.8 million, respectively, of interest expense and $0.2 million and $0.3 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 nine months ended November 30, 2021 and November 30, 2020, the average dollar amount of 6.25% 2025 Notes outstanding was $39.3 million and $60.0 million, respectively.

As discussed above, during the fourth quarter of 2020 fiscal year, the Company redeemed $74.45 million in aggregate principal amount of issued outstanding 2023 Notes.

On June 24, 2020, the Company issued $37.5 million in aggregate principal amount of our 7.25% fixed-rate notes due 2025 (the “7.25% 2025 Notes”) for net proceeds of $36.3 million after deducting underwriting commissions of approximately $1.2 million. Offering costs incurred were approximately $0.3 million. On July 6, 2020, the underwriters exercised their option in full to purchase an additional $5.625 million in aggregate principal amount of its 7.25% 2025 Notes. Net proceeds to the Company were $5.4 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 7.25% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.25% per year. The 7.25% 2025 Notes mature on June 30, 2025 and commencing June 24, 2022, may be redeemed in whole or in part at any time or from time to time at our option on or after June 24, 2022. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 7.25% 2025 Notes have been capitalized and are being amortized over the term of the 7.25% 2025 Notes.

As of November 30, 2021, the total 7.25% 2025 Notes outstanding was $43.1 million. The 7.25% 2025 Notes are listed on the NYSE under the trading symbol “SAK” with a par value of $25.00 per share.

As of November 30, 2021, the carrying amount and fair value of the 7.25% 2025 Notes was $43.1 million and $44.7 million, respectively. The fair value of the 7.25% 2025 Notes, which are publicly traded, is based upon closing market quotes as of the measurement date and would be classified as a Level 1 liability within the fair value hierarchy. As of February 28, 2021, the carrying amount and fair value of the 7.25% 2025 Notes was $43.1 million and $45.7 million, respectively.

For the three months ended November 30, 2021 and November 30, 2020, we recorded $0.8 million and $0.8 million, respectively, of interest expense and $0.08 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 November 30, 2021 and November 30, 2020, the average dollar amount of the 7.25% 2025 Notes outstanding was $43.1 million and $43.1 million respectively.

For the nine months ended November 30, 2021 and November 30, 2020, we recorded $2.3 million and $1.4 million, respectively, of interest expense and $0.2 million and $0.1 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 nine months ended November 30, 2021 and November 30, 2020, the average dollar amount of the 7.25% 2025 Notes outstanding was $43.1 million and $43.1 million respectively.

On July 9, 2020, the Company issued $5.0 million aggregate principal amount of our 7.75% fixed-rate Notes due in 2025 (the “7.75% Notes 2025”) for net proceeds of $4.8 million after deducting underwriting commissions of approximately $0.2 million. Offering costs incurred were approximately $0.1 million. Interest on the 7.75% Notes 2025 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.75% per year. 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, subject to a fee depending on the date of repayment. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 7.75% Notes 2025 have been capitalized and are being amortized over the term of the Notes.

As of November 30, 2021, the total 7.75% Notes 2025 outstanding was $5.0 million. The 7.75% Notes 2025 are not listed and have a par value of $25.00 per share. As of February 28, 2021, there was $5.0 million outstanding. 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 November 30, 2021 and November 30, 2020, we recorded $0.1 million and $0.1 million, respectively, of interest expense and $0.01 million and $0.0 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 November 30, 2021 and November 30, 2020 the average dollar amount of 7.75% Notes 2025 outstanding was $5.0 million and $5.0 million respectively.

For the nine months ended November 30, 2021 and November 30, 2020, we recorded $0.3 million and $0.2 million, respectively, of interest expense and $0.04 million and $0.0 million, respectively, of amortization of deferred financing costs related to the 7.75% 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 nine months ended November 30, 2021 and November 30, 2020 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 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. The 6.25% Notes 2027 mature on December 29, 2027 and may be redeemed in whole or in part at any time or from time to time at our option, on or after December 29, 2024. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.1 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes.

On January 28, 2021, the Company issued $10.0 million aggregate principal amount of our 6.25% fixed rate Notes due in 2027 (the “6.25% Notes 2027”) for net proceeds of $9.7 million after deducting underwriting commissions of approximately $0.3 million. Offering costs incurred were approximately $0.0 million. Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year. The 6.25% Notes 2027 mature on January 28, 2027 and commencing January 28, 2023, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes.

As of November 30, 2021, 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, 2021, there was $15.0 million outstanding. 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 November 30, 2021 and November 30, 2020, we recorded $0.2 million and $0.0 million, respectively, of interest expense and $0.02 million and $0.0 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 November 30, 2021 and November 30, 2020 the average dollar amount of 6.25% Notes 2027 outstanding was $15.0 million and $0.0 million respectively.

For the nine months ended November 30, 2021 and November 30, 2020, we recorded $0.7 million and $0.0 million, respectively, of interest expense and $0.05 million and $0.0 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 nine months ended November 30, 2021 and November 30, 2020 the average dollar amount of 6.25% Notes 2027 outstanding was $15.0 million and $0.0 million respectively.

On March 10, 2021, the Company issued $50.0 million 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 Notes.

On July 15, 2021, the Company issued an additional $125.0 million 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 estimated offering expenses of approximately $0.2 million 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 Notes.

As of November 30, 2021, 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, 2021, there was $0.0 million outstanding. 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 November 30, 2021 and November 30, 2020, we recorded $1.9 million and $0.0 million, respectively, of interest expense, $0.1 million and $0.0 million, respectively, of amortization of deferred financing costs and $0.07 million and $0.0 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 November 30, 2021 and November 30, 2020 the average dollar amount of 4.375% Notes 2026 outstanding was $175.0 million and $0.0 million respectively.

For the nine months ended November 30, 2021 and November 30, 2020, we recorded $3.6 million and $0.0 million, respectively, of interest expense, $0.3 million and $0.0 million, respectively, of amortization of deferred financing costs and $0.09 million and $0.0 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 nine months ended November 30, 2021 and November 30, 2020 the average dollar amount of 4.375% Notes 2026 outstanding was $115.3 million and $0.0 million respectively.

Senior Securities

Information about our senior securities is shown in the following table as of November 30, 2021 for the fiscal year periods indicated in the table, unless otherwise noted.

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 2022 (as of November 30, 2021), (unaudited)	$	12,500	$	2,367		-		N/A
Credit Facility with Madison Capital Funding(14)
Fiscal year 2022 (as of November 30, 2021), (unaudited)	$	-	$	-		-		N/A
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 November 30, 2021), (unaudited)	$	-	$	-		-		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
Fiscal year 2022 (as of November 30, 2021), (unaudited)	$	43,125	$	2,367		-	$	26.32	(11)
Fiscal year 2021 (as of February 28, 2021)	$	43,125	$	3,471			$	25.77	(11)
7.75% Notes due 2025
Fiscal year 2022 (as of November 30, 2021), (unaudited)	$	5,000	$	2,367		-	$	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 2022 (as of November 30, 2021), (unaudited)	$	175,000	$	2,367		-	$	25.00	(12)
6.25% Notes due 2027
Fiscal year 2022 (as of November 30, 2021), (unaudited)	$	15,000	$	2,367		-	$	25.00	(12)
Fiscal year 2021 (as of February 28, 2021)	$	15,000	$	3,471		-	$	25.00	(12)

(1)	We have excluded our SBA-guaranteed debentures from this table because the SEC has granted us exemptive relief that permits us to exclude such debentures from the definition of senior securities in the 150% asset coverage ratio we are required to maintain under the 1940 Act.

(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 issued and outstanding 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.

Note 8. Commitments and Contingencies

Contractual Obligations

The following table shows our payment obligations for repayment of debt and other contractual obligations at November 30, 2021:

			Payment Due by Period
Long-Term Debt Obligations	Total		Less Than 1 Year		1 - 3 Years		3 - 5 Years		More Than 5 Years
	($ in thousands)
Encina credit facility	$	12,500	$	-	$	12,500	$	-	$	-
SBA debentures		207,000		-		37,000		24,660		145,340
7.25% 2025 Notes		43,125		-		-		43,125		-
7.75% 2025 Notes		5,000		-		-		5,000		-
4.375% 2026 Notes		175,000		-		-		175,000		-
6.25% 2027 Notes		15,000		-		-		-		15,000
Total Long-Term Debt Obligations	$	457,625	$	-	$	49,500	$	247,785	$	160,340

Off-Balance Sheet Arrangements

As of November 30, 2021 and February 28, 2021, the Company’s off-balance sheet arrangements consisted of $97.1 million and $58.8 million, respectively, of unfunded commitments outstanding to provide debt financing to its portfolio companies or to fund limited partnership interests. Such commitments are generally up to the Company’s discretion to approve, or the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’s consolidated statements of assets and liabilities and are not reflected in the Company’s consolidated statements of assets and liabilities.

A summary of the unfunded commitments outstanding as of November 30, 2021 and February 28, 2021 is shown in the table below (dollars in thousands):

	November 30, 2021		February 28, 2021
At Company’s discretion
Artemis Wax Corp.	$	9,700	$	-
Axero Holdings, LLC		3,000		-
Book4Time, Inc.		2,000		2,000
CLEO Communications Holding, LLC		-		630
GreyHeller LLC		-		15,000
LFR Chicken LLC		10,000		-
Netreo Holdings, LLC		1,000		10,000
Passageways, Inc.		-		5,000
Pepper Palace, Inc.		3,000		-
Procurement Partners, LLC		3,000		-
Saratoga Senior Loan Fund I JV LLC		43,750		-
Sceptre Hospitality Resources, LLC		1,000		-
Top Gun Pressure Washing, LLC		175		3,175
Village Realty Holdings LLC		-		10,000
Total		76,625		45,805

At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required
Axero Holdings, LLC		2,000		-
GoReact		-		2,000
Granite Comfort, LP		2,000		-
HemaTerra Holding Company, LLC		2,000		2,000
LFR Chicken LLC		3,000		-
New England Dental Partners		4,500		6,000
Passageways, Inc.		-		2,000
Pepper Palace, Inc.		4,500		-
Procurement Partners, LLC		1,000		1,000
Zollege PBC		1,500		-
		20,500		13,000
Total	$	97,125	$	58,805

Note 9. Directors Fees

The independent directors each receive an annual fee of $70,000. They also receive $3,000 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each board meeting and receive $1,500 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each committee meeting. In addition, the chairman of the Audit Committee receives an annual fee of $12,500 and the chairman of each other committee receives an annual fee of $6,000 for their additional services in these capacities. In addition, we have purchased directors’ and officers’ liability insurance on behalf of our directors and officers. Independent directors have the option to receive their directors’ fees in the form of our common stock issued at a price per share equal to the greater of net asset value or the market price at the time of payment. No compensation is paid to directors who are “interested persons” of the Company (as such term is defined in the 1940 Act). For the three months ended November 30, 2021 and November 30, 2020, we incurred $0.07 million and $0.06 million for directors’ fees and expenses, respectively. For the nine months ended November 30, 2021 and November 30, 2020, we incurred $0.3 million and $0.2 million for directors’ fees and expenses, respectively. As of November 30, 2021, and February 28, 2021, $0.0 million and $0.07 million in directors’ fees and expenses were accrued and unpaid, respectively. As of November 30, 2021, we had not issued any common stock to our directors as compensation for their services.

Note 10. Stockholders’ Equity

On May 16, 2006, GSC Group, Inc. capitalized the LLC, by contributing $1,000 in exchange for 67 shares, constituting all of the issued and outstanding shares of the LLC.

On March 20, 2007, the Company issued 95,995.5 and 8,136.2 shares of common stock, priced at $150.00 per share, to GSC Group and certain individual employees of GSC Group, respectively, in exchange for the general partnership interest and a limited partnership interest in GSC Partners CDO III GP, LP, collectively valued at $15.6 million. At this time, the 6.7 shares owned by GSC Group in the LLC were exchanged for 6.7 shares of the Company.

On March 28, 2007, the Company completed its IPO of 725,000 shares of common stock, priced at $150.00 per share, before underwriting discounts and commissions. Total proceeds received from the IPO, net of $7.1 million in underwriter’s discount and commissions, and $1.0 million in offering costs, were $100.7 million.

On July 30, 2010, our Manager and its affiliates purchased 986,842 shares of common stock at $15.20 per share. Total proceeds received from this sale were $15.0 million.

On August 12, 2010, we effected a one-for-ten reverse stock split of our outstanding common stock. As a result of the reverse stock split, every ten shares of our common stock were converted into one share of our common stock. Any fractional shares received as a result of the reverse stock split were redeemed for cash. The total cash payment in lieu of shares was $230. Immediately after the reverse stock split, we had 2,680,842 shares of our common stock outstanding.

On September 24, 2014, the Company announced the approval of an open market share repurchase plan that allowed it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published consolidated financial statements (the “Share Repurchase Plan”). On October 7, 2015, our board of directors extended the Share Repurchase Plan for another year and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 400,000 shares of its common stock. On October 5, 2016, our board of directors extended the Share Repurchase Plan for another year to October 15, 2017 and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 600,000 shares of its common stock. On October 10, 2017, January 8, 2019 and January 7, 2020, our board of directors extended the Share Repurchase Plan for another year to October 15, 2018, January 15, 2020 and January 15, 2021, respectively, each time leaving the number of shares unchanged at 600,000 shares of its common stock. On May 4, 2020, our board of directors increased the Share Repurchase Plan to 1.3 million shares of common stock. On January 5, 2021, our board of directors extended the Share Repurchase Plan for another year to January 15, 2022, leaving the number of shares unchanged at 1.3 million shares of common stock. As of November 30, 2021, the Company purchased 458,435 shares of common stock, at the average price of $18.64 for approximately $8.6 million pursuant to the Share Repurchase Plan. During the three months ended November 30, 2021 there was no activity. During the nine months ended November 30, 2021, the Company purchased 49,623 shares of common stock, at the average price of $25.23 for approximately $1.3 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 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 November 30, 2021, the Company sold 4,447,535 shares for gross proceeds of $112.5 million at an average price of $25.29 for aggregate net proceeds of $111.0 million (net of transaction costs). During the three months ended November 30, 2021, the Company sold 520,076 shares for gross proceeds of $15.2 million at an average price of $29.16 for aggregate net proceeds of $15.0 million (net of transaction cost). During the nine months ended November 30, 2021, the Company sold 525,517 shares for gross proceeds of $15.3 million at an average price of $29.15 for aggregate net proceeds of $15.2 million (net of transaction cost).

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.

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:

										Total
	Common Stock						Capital in Excess			Distributable Earnings
	Shares			Amount			of Par Value			(Loss)			Net Assets
Balance at February 29, 2020		11,217,545		$	11,218		$	289,476,991		$	14,798,644		$	304,286,853
Increase (Decrease) from Operations:
Net investment income		-			-			-			9,018,314			9,018,314
Net realized gain (loss) from investments		-			-			-			8,480			8,480
Net change in unrealized appreciation (depreciation) on investments		-			-			-			(31,950,369	)		(31,950,369	)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments		-			-			-			267,740			267,740
Decrease from Shareholder Distributions:
Distributions of investment income – net		-			-			-			-			-
Capital Share Transactions:
Proceeds from issuance of common stock		-			-			-			-			-
Stock dividend distribution		-			-			-			-			-
Repurchases of common stock		-			-			-			-			-
Offering costs		-			-			-			-			-
Balance at May 31, 2020		11,217,545		$	11,218		$	289,476,991		$	(7,857,191	)	$	281,631,018
Increase (Decrease) from Operations:
Net investment income		-			-			-			5,334,713			5,334,713
Net realized gain (loss) from investments		-			-			-			11,929			11,929
Net change in unrealized appreciation (depreciation) on investments		-			-			-			16,580,401			16,580,401
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments		-			-			-			(116,521	)		(116,521	)
Decrease from Shareholder Distributions:
Distributions of investment income – net		-			-			-			(4,487,015	)		(4,487,015	)
Capital Share Transactions:
Proceeds from issuance of common stock		-			-			-			-			-
Stock dividend distribution		47,098			46			774,944			-			774,990
Repurchases of common stock		(90,321	)		(90	)		(1,550,327	)		-			(1,550,417	)
Repurchase fees		-			-			(1,740	)		-			(1,740	)
Offering costs		-			-			-			-			-
Balance at August 31, 2020		11,174,322		$	11,174		$	288,699,868		$	9,466,316		$	298,177,358

Increase (Decrease) from Operations:
Net investment income		-			-			-			4,471,102			4,471,102
Net realized gain (loss) from investments		-			-			-			1,798			1,798
Income tax (provision) benefit from realized gain on investments											(3,895,354	)		(3,895,354	)
Net change in unrealized appreciation (depreciation) on investments		-			-			-			5,998,830			5,998,830
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments		-			-			-			(210,057	)		(210,057	)
Decrease from Shareholder Distributions:
Distributions of investment income – net		-			-			-			(4,581,469	)		(4,581,469	)
Capital Share Transactions:
Proceeds from issuance of common stock		-			-			-			-			-
Stock dividend distribution		45,706			46			805,883			-			805,929
Repurchases of common stock		(50,000	)		(50	)		(914,194	)		-			(914,244	)
Repurchase fees		-			-			(1,003	)		-			(1,003	)
Offering costs		-			-			-			-			-
Balance at November 30, 2020		11,170,028		$	11,170		$	288,590,554		$	11,251,166		$	299,852,890

										Total
	Common Stock						Capital in Excess			Distributable Earnings
	Shares			Amount			of Par Value			(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

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

Note 11. Earnings Per Share

In accordance with the provisions of FASB ASC Topic 260, “Earnings per Share” (“ASC 260”), basic earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis.

The following information sets forth the computation of the weighted average basic and diluted net increase in net assets resulting from operations per share for the three and nine months ended November 30, 2021 and November 30, 2020 (dollars in thousands except share and per share amounts):

	For the three months ended				For the nine months ended
Basic and Diluted	November 30, 2021		November 30, 2020		November 30, 2021		November 30, 2020
Net increase (decrease) in net assets resulting from operations	$	8,340	$	6,366	$	37,330	$	5,521
Weighted average common shares outstanding		11,450,861		11,169,817		11,312,991		11,198,287
Weighted average earnings (loss) per common share	$	0.73	$	0.57	$	3.30	$	0.49

Note 12. Dividend

On November 30, 2021, the Company declared a dividend of $0.53 per share payable on January 19, 2022, to common stockholders of record on January 4, 2021. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP.

The following table summarizes dividends declared for the nine months ended November 30, 2021 (dollars in thousands except per share amounts):

Date Declared	Record Date	Payment Date	Amount Per Share		Total Amount*
August 26, 2021	September 14, 2021	September 28, 2021	$	0.52	$	5,889
May 27, 2021	June 15, 2021	June 29, 2021		0.44		4,910
March 22, 2021	April 8, 2021	April 22, 2021		0.43		4,799
Total dividends declared			$	1.39	$	15,598

*	Total amount is calculated based on the number of shares outstanding at the date of record.

The following table summarizes dividends declared for the nine months ended November 30, 2020 (dollars in thousands except per share amounts):

Date Declared	Record Date	Payment Date	Amount Per Share		Total Amount*
October 6, 2020	October 27, 2020	November 10, 2020	$	0.41	$	4,581
July 7, 2020	July 27, 2020	August 12, 2020		0.40		4,487
Total dividends declared			$	0.40	$	4,487

*	Total amount is calculated based on the number of shares outstanding at the date of record.

Note 13. Financial Highlights

The following is a schedule of financial highlights as of and for the nine months ended November 30, 2021 and November 30, 2020:

Per share data	November 30, 2021			November 30, 2020
Net asset value at beginning of period	$	27.25		$	27.13
Net investment income(1)		1.25			1.68
Net realized and unrealized gain and losses on investments(1)		2.25			(1.19	)
Realized losses on extinguishment of debt(1)		(0.20	)		-
Net increase in net assets resulting from operations		3.30			0.49
Distributions declared from net investment income		(1.39	)		(0.81	)
Total distributions to stockholders		(1.39	)		(0.81	)
Issuance of common stock above net asset value (2)		-			-
Repurchases of common stock(3)		0.01			0.11
Dilution(4)		-			(0.08	)
Net asset value at end of period	$	29.17		$	26.84
Net assets at end of period	$	342,601,745		$	299,852,890
Shares outstanding at end of period		11,747,004			11,170,028
Per share market value at end of period	$	28.90		$	22.13
Total return based on market value(5)(6)		32.25	%		1.24	%
Total return based on net asset value(5)(7)		13.03	%		3.69	%
Ratio/Supplemental data:
Ratio of net investment income to average net assets(8)		6.80	%		8.66	%
Expenses:
Ratio of operating expenses to average net assets(9)		5.58	%		5.02	%
Ratio of incentive management fees to average net assets(5)		3.00	%		0.66	%
Ratio of interest and debt financing expenses to average net assets(9)		5.90	%		4.24	%
Ratio of total expenses to average net assets(8)		14.48	%		9.92	%
Portfolio turnover rate(5)(10)		33.79	%		10.07	%
Asset coverage ratio per unit(11)		2,367			3,773
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		$	23.87
7.25% Notes Payable 2025	$	26.32		$	25.53
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

(1)	Per share amounts are calculated using the weighted average shares outstanding during the period.

(2)	The continuous issuance of common stock may cause an incremental increase in net asset value per share due to the sale of shares at the then prevailing public offering price and the receipt of net proceeds per share by the Company in excess of net asset value per share on each subscription closing date. The per share data was derived by computing (i) the sum of (A) the number of shares issued in connection with subscriptions and/or distribution reinvestment on each share transaction date multiplied by (B) the differences between the net proceeds per share and the net asset value per share on each share transaction date, divided by (ii) the total shares outstanding during the period.

(3)	Represents the anti-dilutive impact on the net asset value per share (“NAV”) of the Company due to the repurchase of common shares. See Note 10, Stockholders’ Equity.

(4)	Represents the dilutive effect of issuing common stock below net asset value per share during the period in connection with the satisfaction of the Company’s annual RIC distribution requirement and may include the impact of the different share amounts used for different items (weighted average basic common shares outstanding for the corresponding year and actual common shares outstanding at the end of the year) in the per common share data calculation and rounding impacts. See Note 12, Dividend.

(5)	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.

(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.

Note 14. Subsequent Events

The Company has evaluated subsequent events through the filing of this 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:

Subsequent to November 30, 2021, the global outbreak of the coronavirus pandemic has adversely affected some of the Company’s investments and continues to have adverse consequences on the U.S. and global economies. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual portfolio companies, remains uncertain. At the time of this filing, there is no indication of a reportable subsequent event impacting the Company’s financial statements for the three and nine months ended November 30, 2021. The Company cannot predict the extent to which its financial condition and results of operations will be adversely affected at this time. The potential impact to our results will depend to a large extent on future developments and new information that may emerge regarding the duration and severity of COVID-19. The Company continues to observe and respond to the evolving COVID-19 environment and its potential impact on areas across its business.

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.

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, 2021.

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;

●

pandemics or other serious public health events, such as the outbreak of COVID-19;

●

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 our and 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;

●

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 on our results, particularly because we use leverage as part of our investment strategy;

●

the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to us or our Manager;

●

the impact of changes to tax legislation and, generally, our tax position;

●

our ability to access capital and any future financings by us;

●

the ability of our Manager to attract and retain highly talented professionals; and

●

the ability of our Manager to locate suitable investments for us and to monitor and effectively administer our investments and the impacts of the COVID-19 pandemic thereon.

The following statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:

●

changes in laws and regulations, changes in political, economic or industry conditions, and changes in the interest rate environment, including with respect to the anticipated discontinuation of LIBOR, or other conditions affecting the financial and capital markets, including with respect to changes resulting from or in response to, or potentially even the absence of changes as a result of, the impact of the COVID-19 pandemic;

●

the length and duration of the COVID-19 outbreak in the United States as well as worldwide, and the magnitude of its impact and time required for economic recovery, including with respect to the impact of travel restrictions, business closures and other isolation and quarantine measures on the ability of the Manager’s investment professionals to conduct in-person diligence on, and otherwise monitor, existing and future investments;

●

an economic downturn and the time period required for robust economic recovery therefrom, including the current economic downturn as a result of the impact of the COVID-19 pandemic, which may have a material impact on our portfolio companies’ results of operations and financial condition, which could lead to the loss of some or all of our investments in certain portfolio companies and have a material adverse effect on our results of operations and financial condition;

●

a contraction of available credit, an inability or unwillingness of our lenders to fund their commitments to us and/or an inability to access capital markets or additional sources of liquidity, including as a result of the impact and duration of the COVID-19 pandemic, could have a material adverse effect on our results of operations and financial condition and impair our lending and investment activities;

●

risks associated with possible disruption in our portfolio companies’ operations due to wars and other forms of conflict, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics; and

●

the risks, uncertainties and other factors we identify in “Risk Factors” in our most recent Annual Report on Form 10-K under Part I, Item 1A, in our quarterly reports on Form 10-Q, including this report, and in our other filings with the SEC that we make from time to time.

Such forward-looking statements may include statements preceded by, followed by or that otherwise include terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “will” and “would” or the negative of these terms or other comparable terminology.

We have based the forward-looking statements included in this quarterly report on Form 10-Q on information available to us on the date of this quarterly report on Form 10-Q, and we assume no obligation to update any such forward-looking statements. Actual results could differ materially from those anticipated in our forward-looking statements, and future results could differ materially from historical performance. We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law or SEC rule or regulation. You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

The following analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes thereto contained elsewhere in this quarterly report on Form 10-Q.

OVERVIEW

We are a Maryland corporation that has elected to be treated as a BDC under the Investment Company Act of 1940, as amended (the “1940 Act”). Our investment objective is to create attractive risk-adjusted returns by generating current income and long-term capital appreciation from our investments. We invest primarily in senior and unitranche leveraged loans and mezzanine debt issued by private U.S. middle market companies, which we define as companies having earnings before interest, tax, depreciation and amortization (“EBITDA”) of between $2 million and $50 million, both through direct lending and through participation in loan syndicates. We may also invest up to 30.0% of the portfolio in opportunistic investments in order to seek to enhance returns to stockholders. Such investments may include investments in distressed debt, which may include securities of companies in bankruptcy, foreign debt, private equity, securities of public companies that are not thinly traded and structured finance vehicles such as collateralized loan obligation funds. Although we have no current intention to do so, to the extent we invest in private equity funds, we will limit our investments in entities that are excluded from the definition of “investment company” under Section 3(c)(1) or Section 3(c)(7) of the 1940 Act, which includes private equity funds, to no more than 15.0% of its net assets. We have elected, and intend to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

COVID-19 Update

On March 11, 2020, the World Health Organization declared the novel coronavirus, or COVID-19, as a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19. The outbreak of COVID-19 has severely impacted global economic activity and caused significant volatility and negative pressure in financial markets. The global impact of the outbreak has led to, and for an unknown period of time will continue to lead to, disruptions in local, regional, national and global markets and economies affected thereby, including the United States. The COVID-19 pandemic and restrictive measures taken to contain or mitigate its spread have caused, and are continuing to cause, business shutdowns, cancellations of events and restrictions on travel. In addition, while economic activity remains healthy and well improved from the beginning of the COVID-19 pandemic, we continue to observe supply chain interruptions, labor difficulties, commodity inflation and elements of economic and financial market instability both globally and in the United States. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience a recession. As a result, COVID-19 presents material uncertainty and risks with respect to the underlying value of the Company’s portfolio companies, the Company’s business, financial condition, results of operations and cash flows, such as the potential negative impact to financing arrangements, company decisions to delay, defer and/or modify the character of dividends in order to preserve liquidity, increased costs of operations, changes in law and/or regulation, and uncertainty regarding government and regulatory policy.

We have evaluated subsequent events from December 1, 2021 through January 5, 2022. However, as the discussion in this Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations relates to the Company’s financial statements for the quarter-ended November 30, 2021, the analysis contained herein may not fully account for impacts relating to the COVID-19 pandemic. In that regard, for example, as of November 30, 2021, the Company valued its portfolio investments in conformity with U.S. GAAP based on the facts and circumstances known by the Company at that time, or reasonably expected to be known at that time. Due to the overall volatility that the COVID-19 pandemic has caused during the months that followed our November 30, 2021 valuation, any valuations conducted now or in the future in conformity with U.S. GAAP could result in a lower fair value of our portfolio. The potential impact to our results going forward will depend to a large extent on future developments and new information that may emerge regarding the duration and severity of COVID- 19 and the actions taken by authorities and other entities to contain the coronavirus or treat its impact, all of which are beyond our control. Accordingly, the Company cannot predict the extent to which its financial condition and results of operations will be affected at this time.

Corporate History

We commenced operations, at the time known as GSC Investment Corp., on March 23, 2007 and completed an initial public offering of shares of common stock on March 28, 2007. Prior to July 30, 2010, we were externally managed and advised by GSCP (NJ), L.P., an entity affiliated with GSC Group, Inc. In connection with the consummation of a recapitalization transaction on July 30, 2010, as described below we engaged Saratoga Investment Advisors to replace GSCP (NJ), L.P. as our investment adviser and changed our name to Saratoga Investment Corp.

As a result of the event of default under a revolving securitized credit facility with Deutsche Bank we previously had in place, in December 2008 we engaged the investment banking firm of Stifel, Nicolaus & Company to evaluate strategic transaction opportunities and consider alternatives for us. On April 14, 2010, GSC Investment Corp. entered into a stock purchase agreement with Saratoga Investment Advisors and certain of its affiliates and an assignment, assumption and novation agreement with Saratoga Investment Advisors, pursuant to which GSC Investment Corp. assumed certain rights and obligations of Saratoga Investment Advisors under a debt commitment letter Saratoga Investment Advisors received from Madison Capital Funding LLC, which indicated Madison Capital Funding’s willingness to provide GSC Investment Corp. with a $40.0 million senior secured revolving credit facility, subject to the satisfaction of certain terms and conditions. In addition, GSC Investment Corp. and GSCP (NJ), L.P. entered into a termination and release agreement, to be effective as of the closing of the transaction contemplated by the stock purchase agreement, pursuant to which GSCP (NJ), L.P., among other things, agreed to waive any and all accrued and unpaid deferred incentive management fees up to and as of the closing of the transaction contemplated by the stock purchase agreement but continued to be entitled to receive the base management fees earned through the date of the closing of the transaction contemplated by the stock purchase agreement.

On July 30, 2010, the transactions contemplated by the stock purchase agreement with Saratoga Investment Advisors and certain of its affiliates were completed, the private sale of 986,842 shares of our common stock for $15.0 million in aggregate purchase price to Saratoga Investment Advisors and certain of its affiliates closed, the Company entered into the Madison Credit Facility, and the Company began doing business as Saratoga Investment Corp.

We used the net proceeds from the private sale transaction and a portion of the funds available to us under the Madison Credit Facility to pay the full amount of principal and accrued interest, including default interest, outstanding under our revolving securitized credit facility with Deutsche Bank. The revolving securitized credit facility with Deutsche Bank was terminated in connection with our payment of all amounts outstanding thereunder on July 30, 2010.

In January 2011, we registered for public resale of the 986,842 shares of our common stock issued to Saratoga Investment Advisors and certain of its affiliates.

On March 28, 2012, our wholly owned subsidiary, Saratoga Investment Corp. SBIC, LP (“SBIC LP”), received an 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.

In May 2013, we issued $48.3 million in aggregate principal amount of our 7.50% fixed-rate unsecured notes due 2020 (the “2020 Notes”) for net proceeds of $46.1 million after deducting underwriting commissions of $1.9 million and offering costs of $0.3 million. The proceeds included the underwriters’ full exercise of their overallotment option. The 2020 Notes were listed on the NYSE under the trading symbol “SAQ” with a par value of $25.00 per share. The 2020 Notes were redeemed in full on January 13, 2017 and are no longer listed on the NYSE.

On May 29, 2015, we entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which we 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 sold 539,725 bonds with a principal of $13.5 million at an average price of $25.31 for aggregate net proceeds of $13.4 million (net of transaction costs).

On December 21, 2016, we issued $74.5 million in aggregate principal amount of our 6.75% fixed-rate unsecured notes due 2023 (the “2023 Notes”) for net proceeds of $71.7 million after deducting underwriting commissions of approximately $2.3 million and offering costs of approximately $0.5 million. The issuance included the exercise of substantially all of the underwriters’ option to purchase an additional $9.8 million aggregate principal amount of 2023 Notes within 30 days. The 2023 Notes were listed on the NYSE under the trading symbol “SAB” with a par value of $25.00 per share. On December 21, 2019 and February 7, 2020, the Company redeemed $50.0 million and $24.5 million, respectively, in aggregate principal amount of the $74.5 million in aggregate principal amount of issued and outstanding 2023 Notes and are no longer listed on the NYSE.

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 added to the equity ATM program. 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 August 28, 2018, the Company issued $40.0 million in aggregate principal amount of our 6.25% fixed-rate notes due 2025 (the “6.25% 2025 Notes”) for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.3 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $5.0 million aggregate principal amount of 6.25% 2025 Notes within 30 days. Interest on the 6.25% 2025 Notes was paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes. On February 5, 2019, the Company 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. 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. Offering costs incurred were approximately $0.2 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $2.5 million aggregate principal amount of 6.25% 2025 Notes within 30 days. The net proceeds from this offering were used for general corporate purposes in accordance with our investment objective and strategies. The financing costs and discount of $1.0 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes. On August 31, 2021, the 6.25% 2025 Notes were redeemed and are no longer listed on the NYSE.

On December 14, 2018, the Company completed the third refinancing of the Saratoga CLO (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 of January 2020 was also added. In addition to and as part of the refinancing, the Saratoga CLO was also 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 were repaid.

On August 14, 2019, our wholly owned subsidiary, Saratoga Investment Corp. SBIC II LP (“SBIC II LP”), also received an SBIC license from the SBA. The new license will provide up to $175.0 million in additional long-term capital in the form of SBA debentures.

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% unsecured notes due 2025. Net proceeds to the Company were $5.4 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 7.25% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.25%. The 7.25% 2025 Notes mature on June 30, 2025 and commencing June 24, 2022, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 7.25% 2025 Notes have been capitalized and are being amortized over the term of the 7.25% 2025 Notes. As of November 30, 2021, the total 7.25% 2025 Notes outstanding was $43.1 million. The 7.25% 2025 Notes are listed on the NYSE under the trading symbol “SAK” with a par value of $25.00 per share.

On July 9, 2020, the Company issued $5.0 million aggregate principal amount of our 7.75% fixed-rate Notes due in 2025 (the “7.75% 2025 Notes”) 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, subject to a fee depending on the date of repayment. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 7.75% Notes 2025 have been capitalized and are being amortized over the term of the Notes. As of November 30, 2021, the total 7.25% 2025 Notes outstanding was $5.0 million. The 7.75% 2025 Notes are unlisted and has a par value of $25.00 per share.

On December 29, 2020, the Company issued $5.0 million aggregate principal amount of our 6.25% fixed-rate Notes due in 2027 (the “6.25% Notes 2027”). Offering costs incurred were approximately $0.1 million. Interest on the 6.25% Notes 2027 is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year. The 6.25% Notes 2027 mature on December 29, 2027 and may be redeemed in whole or in part at any time or from time to time at our option on or after December 29, 2024. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.1 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes. The 6.25% 2027 Notes are unlisted and have a par value of $25.00 per share.

On January 28, 2021, the Company issued $10.0 million aggregate principal amount of our 6.25% fixed rate Notes due in 2027 (the “Second 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 Second 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. The Second 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 Second 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes. The Second 6.25% 2027 Notes are unlisted and have a par value of $25.00 per share.

On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. A non-call period ending February 2022 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions.

On July 15, 2021, the Company issued an additional $125.0 million 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 estimated offering expenses of approximately $0.2 million payable by the Company. The net proceeds from the offering were used 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. The Additional 4.375% 2026 Notes were treated as a single series with the existing 4.375% 2026 Notes under the indenture and had the same terms as the existing 4.375% 2026 Notes.

On July 30, 2021, we entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc. and Compass Point Research and Trading, LLC (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 November 30, 2021, the Company sold 4,447,535 shares for gross proceeds of $112.5 million at an average price of $25.29 for aggregate net proceeds of $111.0 million (net of transaction costs). During the three months ended November 30, 2021, the Company sold 520,076 shares for gross proceeds of $15.2 million at an average price of $29.16 for aggregate net proceeds of $15.0 million (net of transaction cost). During the nine months ended November 30, 2021, the Company sold 525,517 shares for gross proceeds of $15.3 million at an average price of $29.15 for aggregate net proceeds of $15.2 million (net of transaction cost).

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 facility terminated.

Critical Accounting Policies

Basis of Presentation

The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make certain estimates and assumptions affecting amounts reported in the Company’s consolidated financial statements. We have identified investment valuation, revenue recognition and the recognition of capital gains incentive fee expense as our most critical accounting estimates. We continuously evaluate our estimates, including those related to the matters described below. These estimates are based on the information that is currently available to us and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions or conditions. A discussion of our critical accounting policies follows.

Investment Valuation

The Company accounts for its investments at fair value in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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 balance sheet 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 Saratoga Investment Advisors, the audit committee of our board of directors and a third party independent valuation firm. 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.

We undertake a multi-step valuation process each quarter when valuing investments for which market quotations are not readily available, as described below:

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Each investment is initially valued by the responsible investment professionals of Saratoga Investment Advisors and preliminary valuation conclusions are documented and discussed with our senior management; and

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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 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:

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The audit committee of our board of directors reviews and approves each preliminary valuation and Saratoga Investment Advisors and an independent valuation firm (if applicable) will supplement the preliminary valuation to reflect any comments provided by the audit committee; and

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Our board of directors discusses the valuations and approves the fair value of each investment, in good faith, based on the input of Saratoga Investment Advisors, independent valuation firm (to the extent applicable) and the audit committee of our board of directors.

Our investment in Saratoga CLO is carried at fair value, which is based on a discounted cash flows that utilizes prepayment, re-investment and loss assumptions based on historical experience and projected performance, economic factors, the characteristics of the underlying cash flow, and market comparables for equity interests in collateralized loan obligation funds similar to Saratoga CLO, when available, as determined by Saratoga Investment Advisors 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 rate 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 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.

Revenue Recognition

Income Recognition

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 over the life of the respective investment using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of discounts and amortization of premiums on investments.

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. We stop accruing PIK interest if we do not expect the issuer to be able to pay all principal and interest when due.

Revenues

We generate revenue in the form of interest income and capital gains on the debt investments that we hold and capital gains, if any, on equity interests that we may acquire. We expect our debt investments, whether in the form of leveraged loans or mezzanine debt, to have terms of up to ten years, and to bear interest at either a fixed or floating rate. Interest on debt will be payable generally either quarterly or semi-annually. In some cases, our debt or preferred equity investments may provide for a portion or all of the interest to be PIK. To the extent interest is PIK, it will be payable through the increase of the principal amount of the obligation by the amount of interest due on the then-outstanding aggregate principal amount of such obligation. The principal amount of the debt and any accrued but unpaid interest will generally become due at the maturity date. In addition, we may generate revenue in the form of commitment, origination, structuring or diligence fees, fees for providing managerial assistance or investment management services and possibly consulting fees. Any such fees will be generated in connection with our investments and recognized as earned. We may also invest in preferred equity or common equity securities that pay dividends on a current basis.

On January 22, 2008, we entered into a collateral management agreement with Saratoga CLO, pursuant to which we act 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, we completed a second refinancing of the Saratoga CLO with its reinvestment period extended to October 2018.

On December 14, 2018, we completed a third refinancing and upsize of the Saratoga CLO. 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 of 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, we 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 LIBOR plus 8.75% and LIBOR plus 10.00%, respectively. As part of this refinancing, we also redeemed our existing $4.5 million aggregate amount of the Class F notes tranche at par.

On February 26, 2021, the Company completed the fourth refinancing of the Saratoga CLO. This refinancing, among other things, extended the Saratoga CLO reinvestment period to April 2024, and extended its legal maturity to April 2033. A non-call period ending February 2022 was also added. In addition, and as part of the refinancing, the Saratoga CLO has also been upsized from $500 million in assets to approximately $650 million. As part of this refinancing and upsizing, the Company invested an additional $14.0 million in all of the newly issued subordinated notes of the Saratoga CLO, and purchased $17.9 million in aggregate principal amount of the Class F-R-3 Notes tranche at par. Concurrently, the existing $2.5 million of Class F-R-2 Notes, $7.5 million of Class G-R-2 Notes and $25.0 million CLO 2013-1 Warehouse 2 Loan were repaid. The Company also paid $2.6 million of transaction costs related to the refinancing and upsizing on behalf of the Saratoga CLO, to be reimbursed from future equity distributions. At August 31, 2021, the outstanding receivable of $2.6 million was repaid in full.

The Saratoga CLO remains effectively 100% owned and managed by Saratoga Investment Corp. 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. Prior to the second refinancing and the issuance of the 2013-1 Amended CLO Notes, we received a base management fee of 0.25% per annum and a subordinated management fee of 0.25% 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%.

Interest income on our investment in Saratoga CLO is recorded using the effective interest method in accordance with the provisions of ASC Topic 325-40, Investments-Other, Beneficial Interests in Securitized Financial Assets (“ASC 325-40”), 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.

Expenses

Our primary operating expenses include the payment of investment advisory and management fees, professional fees, directors and officers insurance, fees paid to independent directors and administrator expenses, including our allocable portion of our administrator’s overhead. Our investment advisory and management fees compensate our Manager for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all other costs and expenses of our operations and transactions, including those relating to:

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organization;

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calculating our net asset value (including the cost and expenses of any independent valuation firm);

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expenses incurred by our Manager payable to third parties, including agents, consultants or other advisers, in monitoring our financial and legal affairs and in monitoring our investments and performing due diligence on our prospective portfolio companies;

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expenses incurred by our Manager payable for travel and due diligence on our prospective portfolio companies;

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interest payable on debt, if any, incurred to finance our investments;

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offerings of our common stock and other securities;

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investment advisory and management fees;

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fees payable to third parties, including agents, consultants or other advisers, relating to, or associated with, evaluating and making investments;

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transfer agent and custodial fees;

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federal and state registration fees;

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all costs of registration and listing our common stock on any securities exchange;

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federal, state and local taxes;

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independent directors’ fees and expenses;

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costs of preparing and filing reports or other documents required by governmental bodies (including the U.S. Securities and Exchange Commission (“SEC”) and the SBA);

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costs of any reports, proxy statements or other notices to common stockholders including printing costs;

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our fidelity bond, directors and officers errors and omissions liability insurance, and any other insurance premiums;

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direct costs and expenses of administration, including printing, mailing, long distance telephone, copying, secretarial and other staff, independent auditors and outside legal costs; and

●

administration fees and all other expenses incurred by us or, if applicable, the administrator in connection with administering our business (including payments under the Administration Agreement based upon our allocable portion of the administrator’s overhead in performing its obligations under an Administration Agreement, including rent and the allocable portion of the cost of our officers and their respective staffs (including travel expenses)).

Pursuant to the investment advisory and management agreement that we had with GSCP (NJ), L.P., our former investment adviser and administrator, we had agreed to pay GSCP (NJ), L.P. as investment adviser a quarterly base management fee of 1.75% of the average value of our total 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 and an incentive fee.

The incentive fee had two parts:

●

A fee, payable quarterly in arrears, equal to 20.0% of our pre-incentive fee net investment income, expressed as a rate of return on the value of the net assets at the end of the immediately preceding quarter, that exceeded a 1.875% quarterly hurdle rate measured as of the end of each fiscal quarter. Under this provision, in any fiscal quarter, our former investment adviser received no incentive fee unless our pre-incentive fee net investment income exceeded the hurdle rate of 1.875%. Amounts received as a return of capital were not included in calculating this portion of the incentive fee. Since the hurdle rate was based on net assets, a return of less than the hurdle rate on total assets could still have resulted in an incentive fee.

●

A fee, payable at the end of each fiscal year, equal to 20.0% of our net realized capital gains, if any, computed net of all realized capital losses and unrealized capital depreciation, in each case on a cumulative basis on each investment in the Company’s portfolio, less the aggregate amount of capital gains incentive fees paid to our former investment adviser through such date.

We deferred cash payment of any incentive fee otherwise earned by our former investment adviser if, during the then most recent four full fiscal quarters ending on or prior to the date such payment was to be made, the sum of (a) our aggregate distributions to our stockholders and (b) our change in net assets (defined as total assets less liabilities) (before taking into account any incentive fees payable during that period) was less than 7.5% of our net assets at the beginning of such period. These calculations were appropriately pro-rated for the first three fiscal quarters of operation and adjusted for any share issuances or repurchases during the applicable period. Such incentive fee would become payable on the next date on which such test had been satisfied for the most recent four full fiscal quarters or upon certain terminations of the investment advisory and management agreement. We commenced deferring cash payment of incentive fees during the quarterly period ended August 31, 2007 and continued to defer such payments through the quarterly period ended May 31, 2010. As of July 30, 2010, the date on which GSCP (NJ), L.P. ceased to be our investment adviser and administrator, we owed GSCP (NJ), L.P. $2.9 million in fees for services previously provided to us; of which $0.3 million has been paid by us. GSCP (NJ), L.P. agreed to waive payment by us of the remaining $2.6 million in connection with the consummation of the stock purchase transaction with Saratoga Investment Advisors and certain of its affiliates described elsewhere in this Quarterly Report.

The terms of the investment advisory and management agreement with Saratoga Investment Advisors, our current investment adviser, are substantially similar to the terms of the investment advisory and management agreement we had entered into with GSCP (NJ), L.P., our former investment adviser, except for the following material distinctions in the fee terms:

●

The capital gains portion of the incentive fee was reset with respect to gains and losses from May 31, 2010, and therefore losses and gains incurred prior to such time will not be taken into account when calculating the capital gains fee payable to Saratoga Investment Advisors and, as a result, Saratoga Investment Advisors will be entitled to 20.0% of net gains that arise after May 31, 2010. In addition, the cost basis for computing realized gains and losses on investments held by us as of May 31, 2010 equal the fair value of such investment as of such date. Under the investment advisory and management agreement with our former investment adviser, GSCP (NJ), L.P., the capital gains fee was calculated from March 21, 2007, and the gains were substantially outweighed by losses.

●

Under the “catch up” provision, 100.0% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income that exceeds 1.875% but is less than or equal to 2.344% in any fiscal quarter is payable to Saratoga Investment Advisors. This will enable Saratoga Investment Advisors to receive 20.0% of all net investment income as such amount approaches 2.344% in any quarter, and Saratoga Investment Advisors will receive 20.0% of any additional net investment income. Under the investment advisory and management agreement with our former investment adviser, GSCP (NJ), L.P. only received 20.0% of the excess net investment income over 1.875%.

●

We will no longer have deferral rights regarding incentive fees in the event that the distributions to stockholders and change in net assets is less than 7.5% for the preceding four fiscal quarters.

Capital Gains Incentive Fee

The Company records an expense accrual relating to the capital gains incentive fee payable by the Company to its Manager when the unrealized gains on its investments exceed all realized capital losses on its investments given the fact that a capital gains incentive fee would be owed to the Manager if the Company were to liquidate its investment portfolio at such time. The actual incentive fee payable to the Company’s Manager related to capital gains will be determined and payable in arrears at the end of each fiscal year and will include only realized capital gains for the period.

New Accounting Pronouncements

Portfolio and Investment Activity

Investment Portfolio Overview

	November 30, 2021			February 28, 2021
	($ in millions)
Number of investments(1)		88			81
Number of portfolio companies(2)		42			40
Average investment per portfolio company(2)	$	14.8		$	12.6
Average investment size(1)	$	7.2		$	6.5
Weighted average maturity(3)		3.1 yrs			3.2 yrs
Number of industries		34			31
Non-performing or delinquent investments (fair value)	$	-		$	2.1
Fixed rate debt (% of interest earning portfolio)(3)	$	16.9(3.0	%)	$	23.3(4.8	%)
Fixed rate debt (weighted average current coupon)(3)		10.1	%		9.8	%
Floating rate debt (% of interest earning portfolio)(3)	$	545.3(97.0	%)	$	462.6(95.2	%)
Floating rate debt (weighted average current spread over LIBOR)(3)(4)		7.3	%		7.4	%

(1)	Excludes our investment in the subordinated notes of Saratoga CLO.

(2)	At November 30, 2021, excludes our investment in the subordinated notes of Saratoga CLO and Class F-2-R-3 Note tranche of Saratoga CLO. At February 28, 2021, excludes our investment in the subordinated notes of Saratoga CLO, Class F-R-3 Notes tranches of Saratoga CLO.

(3)	Excludes our investment in the subordinated notes of Saratoga CLO and equity interests.

(4)	Calculation uses either 1-month or 3-month LIBOR, depending on the contractual terms, and after factoring in any existing LIBOR floors.

During the three months ended November 30, 2021, we invested $58.6 million in new or existing portfolio companies and had $66.4 million in aggregate amount of exits and repayments resulting in net exits and repayments of $7.9 million for the period. During the three months ended November 30, 2020, we invested $51.3 million in new or existing portfolio companies and had $18.3 million in aggregate amount of exits and repayments resulting in net investment of $33.0 million for the period.

During the nine months ended November 30, 2021, we invested $293.8 million in new or existing portfolio companies and had $216.2 million in aggregate amount of exits and repayments resulting in net investments of $77.5 million for the period. During the nine months ended November 30, 2020, we invested $122.0 million in new or existing portfolio companies and had $50.9 million in aggregate amount of exits and repayments resulting in net investment of $71.1 million for the period.

Portfolio Composition

Our portfolio composition at November 30, 2021 and February 28, 2021 at fair value was as follows:

	November 30, 2021						February 28, 2021
	Percentage of Total Portfolio			Weighted Average Current Yield			Percentage of Total Portfolio			Weighted Average Current Yield
First lien term loans		76.4	%		8.6	%		79.5	%		9.5	%
Second lien term loans		6.8			11.1			4.4			12.3
Unsecured term loans		0.4			8.1			0.4			-
Structured finance securities		6.1			11.6			9.0			11.6
Equity interests		10.3			-			6.7			-
Total		100.0	%		8.1	%		100.0	%		9.1	%

At November 30, 2021, our investment in the subordinated notes of Saratoga CLO, a collateralized loan obligation fund, had a fair value of $31.3 million and constituted 4.7% of our portfolio. This investment constitutes a first loss position in a portfolio that, as of November 30, 2021 and February 28, 2021, was composed of $683.2 million and $603.7 million, respectively, in aggregate principal amount of primarily senior secured first lien term loans. In addition, as of November 30, 2021, we also own $9.4 million in aggregate principal of the F-2-R-3 Notes in the Saratoga CLO, which only rank senior to the subordinated notes.

This investment is subject to unique risks. (See “Part 1. Item 1A. Risk Factors—Our investment in Saratoga CLO constitutes a leveraged investment in a portfolio of predominantly senior secured first lien term loans and is subject to additional risks and volatility” in our Annual Report on Form 10-K for the fiscal year ended February 28, 2021).

We do not consolidate the Saratoga CLO portfolio in our consolidated financial statements. Accordingly, the metrics below do not include the underlying Saratoga CLO portfolio investments. However, at November 30, 2021, $660.5 million or 99.1% of the Saratoga CLO portfolio investments in terms of market value had a CMR (as defined below) color rating of green or yellow. At February 28, 2021, $584.6 million or 98.7% of the Saratoga CLO portfolio investments in terms of market value had a CMR (as defined below) color rating of green or yellow and four Saratoga CLO portfolio investments were in default with a fair value of $0.8 million. For more information relating to the Saratoga CLO, see the audited financial statements for Saratoga in our Annual Report on Form 10-K for the fiscal year ended February 28, 2021.

Saratoga Investment Advisors normally grades all of our investments using a credit and monitoring rating system (“CMR”). The CMR consists of a single component: a color rating. The color rating is based on several criteria, including financial and operating strength, probability of default, and restructuring risk. The color ratings are characterized as follows: (Green)—performing credit; (Yellow)—underperforming credit; (Red)—in principal payment default and/or expected loss of principal.

Portfolio CMR distribution

The CMR distribution for our investments at November 30, 2021 and February 28, 2021 was as follows:

Saratoga Investment Corp.

	November 30, 2021					February 28, 2021
Color Score	Investments at Fair Value		Percentage of Total Portfolio			Investments at Fair Value		Percentage of Total Portfolio
	($ in thousands)
Green	$	534,319		80.7	%	$	453,297		81.8	%
Yellow		27,829		4.2			32,559		5.9
Red		-		0.0			-		0.0
N/A(1)		99,645		15.1			68,457		12.3
Total	$	661,793		100.0	%	$	554,313		100.0	%

(1)	Comprised of our investment in the subordinated notes of Saratoga CLO and equity interests.

The change in reserve from $1.2 million as of February 28, 2021 to $0.0 million as of November 30, 2021 was primarily related to the write-off of the interest accruals related to My Alarm Center, LLC, that we deemed non-recoverable, as well as the release of the reserve for our Taco Mac investment that has gone back on accrual. As of November 30, 2021, there are no non-accrual investments.

The CMR distribution of Saratoga CLO investments at November 30, 2021 and February 28, 2021 was as follows:

Saratoga CLO

	November 30, 2021					February 28, 2021
Color Score	Investments at Fair Value		Percentage of Total Portfolio			Investments at Fair Value		Percentage of Total Portfolio
	($ in thousands)
Green	$	614,529		92.2	%	$	514,183		86.8	%
Yellow		45,935		6.9			70,415		11.9
Red		6,245		0.9			6,921		1.2
N/A(1)		-		0.0			501		0.1
Total	$	666,709		100.0	%	$	592,020		100.0	%

(1)	Comprised of Saratoga CLO’s equity interests.

Portfolio composition by industry grouping at fair value

The following table shows our portfolio composition by industry grouping at fair value at November 30, 2021 and February 28, 2021:

Saratoga Investment Corp.

	November 30, 2021					February 28, 2021
	Investments At Fair Value		Percentage of Total Portfolio			Investments At Fair Value		Percentage of Total Portfolio
	($ in thousands)
Healthcare Software	$	86,517		13.1	%	$	28,972		5.2	%
IT Services		66,934		10.1			73,087		13.2
Healthcare Services		42,043		6.4			42,410		7.7
Structured Finance Securities(1)		40,665		6.1			49,779		9.0
Specialty Food Retailer		34,576		5.2			-		0.0
Education Services		34,013		5.1			40,384		7.1
Education Software		31,640		4.8			88,090		15.9
Consumer Services		30,998		4.7			181		0.0
HVAC Services and Sales		27,936		4.2			14,894		2.7
Sports Management		26,573		4.0			25,469		4.6
Dental Practice Management Software		26,401		4.0			23,659		4.3
Talent Acquisition Software		19,826		3.0			-		0.0
Hospitality/Hotel		19,713		3.0			17,080		3.1
Real Estate Services		18,288		2.8			18,032		3.3
Mentoring Software		17,850		2.7			-		0.0
Payroll Services		17,516		2.6			18,333		3.3
Marketing Services		17,489		2.6			17,372		3.1
Restaurant		15,618		2.4			2,141		0.4
Facilities Maintenance		10,995		1.7			6,193		1.1
Insurance Software		10,921		1.7			-		0.0
Employee Collaboration Software		9,445		1.4			-		0.0
Waste Services		9,000		1.4			9,000		1.6
Dental Practice Management		8,516		1.3			7,133		1.3
Industrial Products		8,391		1.3			9,047		1.6
Non-profit Services		8,280		1.3			5,554		1.0
Healthcare Supply		5,230		0.8			5,422		1.0
Field Service Management		4,020		0.6			4,018		0.7
Office Supplies		3,737		0.6			3,610		0.7
Corporate Education Software		3,447		0.5			1,050		0.2
Staffing Services		1,893		0.3			925		0.2
Cyber Security		1,636		0.2			13,174		2.4
Healthcare Products Manufacturing		645		0.1			567		0.1
Consumer Products		531		0.1			475		0.1
Financial Services		511		0.1			419		0.1
Corporate Governance		-		0.0			13,265		2.4
Property Management		-		0.0			14,578		2.6
Total	$	661,793		100.0	%	$	554,313		100.0	%

(1)	As of November 30, 2021, comprised of our investment in the subordinated notes and Class F-2-R-3 Notes of Saratoga CLO. As of February 28, 2021, comprised of our investments in the subordinated notes and F-R-3 Notes of Saratoga CLO.

The following table shows Saratoga CLO’s portfolio composition by industry grouping at fair value at November 30, 2021 and February 28, 2021:

Saratoga CLO

	November 30, 2021					February 28, 2021
	Investments at Fair Value		Percentage of Total Portfolio			Investments at Fair Value		Percentage of Total Portfolio
	($ in thousands)
Banking, Finance, Insurance & Real Estate	$	122,222		18.4	%	$	105,326		17.9	%
Services: Business		79,383		11.9			55,588		9.4
High Tech Industries		62,590		9.4			50,106		8.5
Healthcare & Pharmaceuticals		42,203		6.4			46,689		7.9
Services: Consumer		40,085		6.0			31,604		5.4
Telecommunications		31,171		4.8			29,878		5.1
Automotive		26,724		4.0			19,159		3.2
Containers, Packaging & Glass		22,025		3.3			18,822		3.2
Chemicals, Plastics, & Rubber		20,911		3.0			23,302		3.9
Media: Advertising, Printing & Publishing		20,786		3.0			19,826		3.3
Consumer goods: Durable		19,014		2.9			13,143		2.1
Beverage, Food & Tobacco		18,806		2.8			17,998		3.1
Consumer goods: Non-durable		18,628		2.8			19,343		3.3
Hotel, Gaming & Leisure		18,186		2.7			20,515		3.4
Aerospace & Defense		17,412		2.6			25,952		4.4
Retail		15,168		2.3			12,880		2.1
Media: Broadcasting & Subscription		11,851		1.8			9,426		1.6
Construction & Building		11,569		1.7			5,362		0.9
Capital Equipment		10,397		1.6			9,961		1.7
Forest Products & Paper		9,299		1.4			6,954		1.2
Media: Diversified & Production		9,224		1.4			6,035		1.0
Utilities: Oil & Gas		8,101		1.2			8,235		1.3
Metals & Mining		6,888		1.0			6,127		1.0
Wholesale		5,701		0.9			5,841		1.0
Transportation: Consumer		4,932		0.7			6,183		1.0
Utilities: Electric		4,115		0.6			4,209		0.7
Energy: Electricity		3,811		0.6			4,547		0.8
Transportation: Cargo		3,796		0.6			5,812		1.0
Environmental Industries		1,568		0.2			989		0.2
Energy: Oil & Gas		143		0.0			2,208		0.4
Total	$	666,709		100.0	%	$	592,020		100.0	%

Portfolio composition by geographic location at fair value

The following table shows our portfolio composition by geographic location at fair value at November 30, 2021 and February 28, 2021. The geographic composition is determined by the location of the corporate headquarters of the portfolio company.

	November 30, 2021					February 28, 2021
	Investments at Fair Value		Percentage of Total Portfolio			Investments at Fair Value		Percentage of Total Portfolio
	($ in thousands)
Southeast	$	251,294		38.0	%	$	167,397		30.2	%
West		162,908		24.6			145,907		26.3
Midwest		121,439		18.4			110,125		19.9
Northeast		48,959		7.4			7,314		1.3
Southwest		31,568		4.8			39,334		7.1
Northwest		1,636		0.2			13,174		2.4
Other(1)		43,989		6.6			71,062		12.8
Total	$	661,793		100.0	%	$	554,313		100.0	%

(1)	As of November 30, 2021, comprised of our investments in the subordinated notes, F-2-R-3 Notes of Saratoga CLO and foreign investments. As of February 28, 2021, comprised of our investments in the subordinated notes, F-R-3 Notes of Saratoga CLO and foreign investments.

Results of operations

Operating results for the three and nine months ended November 30, 2021 and November 30, 2020 was as follows:

	For the three months ended						For the nine months ended
	November 30, 2021			November 30, 2020			November 30, 2021			November 30, 2020
	($ in thousands)
Total investment income	$	16,502		$	14,283		$	51,760		$	41,435
Total operating expenses		11,305			9,812			37,614			22,611
Net investment income		5,197			4,471			14,146			18,824
Net realized gain (loss) from investments		9,917			2			13,329			22
Income tax (provision) benefit from realized gain on investments		(2,447	)		(3,895	)		(2,896	)		(3,895	)
Net change in unrealized appreciation (depreciation) on investments		(6,043	)		5,999			14,146			(9,371	)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments		2,480			(210	)		921			(59	)
Realized losses on extinguishment of debt		(764	)		-			(2,316	)
Net increase (decrease) in net assets resulting from operations	$	8,340		$	6,367		$	37,330		$	5,521

Investment income

The composition of our investment income for three and nine months ended November 30, 2021 and November 30, 2020 was as follows:

	For the three months ended				For the nine months ended
	November 30, 2021		November 30, 2020		November 30, 2021		November 30, 2020
	($ in thousands)
Interest from investments	$	14,137	$	12,804	$	42,938	$	37,215
Interest from cash and cash equivalents		1		1		2		14
Management fee income		816		624		2,449		1,884
Dividend Income		538		13		1,595		13
Structuring and advisory fee income		582		545		2,923		1,798
Other income		428		296		1,853		511
Total investment income	$	16,502	$	14,283	$	51,760	$	41,435

For the three months ended November 30, 2021, total investment income increased $2.2 million, or 15.5% to $16.5 million from $14.3 million for the three months ended November 30, 2020. Interest income from investments increased $1.3 million, or 10.4%, to $14.1 million for the three months ended November 30, 2021 from $12.8 million for the three months ended November 30, 2020. This reflects the impact of the increase of $115.0 million, or 21.0% in total investments at November 30, 2021 from $546.9 million at November 30, 2020, partially offset by (i) the reduction in LIBOR and interest spreads during this same period and (ii) the increase in equity positions that are not interest-bearing. At November 30, 2021, the weighted average current yield on investments was 8.1%, down from 9.4% at November 30, 2020, which offset some of the impact resulting from the increased investments.

For the nine months ended November 30, 2021, total investment income increased $10.3 million, or 24.9% to $51.8 million from $41.4 million for the nine months ended November 30, 2020. Interest income from investments increased $5.7 million, or 15.4%, to $42.9 million for the nine months ended November 30, 2021 from $37.2 million for the nine months ended November 30, 2020. This reflects the impact of the increase of $115.0 million, or 21.0% in total investments at November 30, 2021 from $546.9 million at November 30, 2020, partially offset by (i) the reduction in LIBOR and interest spreads during this same period and (ii) the increase in equity positions that are not interest-bearing.

For the three and nine months ended November 30, 2021 and November 30, 2020, total PIK income was $0.2 million and $0.3 million, respectively and $1.3 million and $1.4 million, respectively.

Management fee income reflects the fee income received for managing the Saratoga CLO. For the three months ended November 30, 2021 and November 30, 2020, total management fee income was $0.8 million and $0.6 million, respectively. For the nine months ended November 30, 2021 and November 30, 2020, total management fee income was $2.4 million and $1.9 million, respectively. The increase is reflecting the upsizing of the CLO at year-end with greater management fees being earned on the increased assets under management in the CLO.

For the three and nine months ended November 30, 2021 and November 30, 2020, total dividend income was $0.5 million and $0.01 million, respectively, and $1.6 million and $0.01 million, respectively. Dividends received is recorded in the consolidated statements of operations when earned, and the increase primarily reflects dividend income received on various preferred equity investments.

For the three and nine months ended November 30, 2021 and November 30, 2020, total structuring and advisory fee income was $0.6 million and $0.5 million, respectively, and $2.9 million and $1.8 million, respectively. Structuring and advisory fee income represents fee income earned and received performing certain investment and advisory activities during the closing of new investments, with the increase primarily reflecting the increased originations during the period.

For the three and nine months ended November 30, 2021 and November 30, 2020, other income was $0.4 million and $0.3 million, respectively, and $1.9 million and $0.5 million, respectively. Other income includes origination fees and prepayment income fees and is recorded in the consolidated statements of operations when earned. The increase was driven primarily by prepayment penalties earned from certain redemptions.

Operating expenses

The composition of our operating expenses for the three and nine months ended November 30, 2021 and November 30, 2020 was as follows:

	For the three months ended					For the six months ended
	November 30, 2021			November 30, 2020		November 30, 2021		November 30, 2020
	($ in thousands)
Interest and debt financing expenses	$	4,843		$	3,560	$	14,368	$	9,452
Base management fees		2,923			2,324		8,685		6,694
Incentive management fees expense (benefit)		2,417			2,295		9,698		1,966
Professional fees		(104	)		503		863		1,258
Administrator expenses		750			694		2,156		1,852
Insurance		85			67		258		203
Directors fees and expenses		73			60		266		195
General & administrative and other expenses		358			279		1,302		963
Income tax expense (benefit)		(40	)		30		18		28
Total operating expenses	$	11,305		$	9,812	$	37,614	$	22,611

For the three months ended November 30, 2021, total operating expenses increased $1.5 million, or 15.2% compared to the three months ended November 30, 2020. For the nine months ended November 30, 2021, total operating expenses increased $15.0 million, or 66.3% compared to the nine months ended November 30, 2020.

For the three months ended November 30, 2021, interest and debt financing expenses increased $1.3 million, or 36.0% compared to the three months ended November 30, 2020. The increase is primarily attributable to an increase in average outstanding debt from $278.4 million for the three months ended November 30, 2020 to $423.8 million for the three months ended November 30, 2021, primarily reflecting the issuance of the 4.375% 2026 Notes during the three months ended November 30, 2021, partially offset by the full redemption of the 6.25% 2025 Notes.

For the nine months ended November 30, 2021, interest and debt financing expenses increased $4.9 million, or 52.0% compared to the nine months ended November 30, 2020. The increase is primarily attributable to an increase in average outstanding debt from $253.6 million for the nine months ended November 30, 2020 to $393.4 million for the nine months ended November 30, 2021, primarily reflecting the issuance of various unsecured notes during the year ended February 28, 2021 and the nine months ended November 30, 2021, including the 7.25% 2025 Notes, the 7.75% 2025 Notes and the 6.25% 2027 Notes, and the 4.375% 2026 Notes, partially offset by the full redemption of the 6.25% 2025 Notes.

For the three and nine months ended November 30, 2021 and November 30, 2020, the weighted average interest rate on our outstanding indebtedness was 3.98% and 4.42%, respectively and 4.24% and 6.41%, respectively. The decrease in weighted average interest rate was primarily driven by the issuance of the lower-rate 4.375% 2026 Notes (as described above) in addition to lower cost SBA debentures over the past year.

As of November 30, 2021 and February 28, 2021, the SBA debentures represented 45.2% and 56.2% of overall debt, respectively.

For the three months ended November 30, 2021, base management fees increased $0.6 million, or 25.8% from $2.3 million to $3.0 million compared to the three months ended November 30, 2020. The increase in base management fees results from the 25.8% increase in the average value of our total assets, less cash and cash equivalents, from $532.8 million for the three months ended November 30, 2020 to $670.1 million for the three months ended November 30, 2021. For the nine months ended November 30, 2021, base management fees increased $2.0 million, or 29.7% from $6.7 million to $8.7 million compared to the nine months ended November 30, 2020. The increase in base management fees results from the 29.7% increase in the average value of our total assets, less cash and cash equivalents, from $507.7 million for the nine months ended November 30, 2020 to $658.7 million for the nine months ended November 30, 2021.

For the three months ended November 30, 2021, incentive management fees increased $0.1 million, or 5.3%, compared to the three months ended November 30, 2020. The first part of the incentive management fees increased from $1.2 million for the three months ended November 30, 2020 to $1.5 million for the three months ended November 30, 2021, reflecting the increased performance during this quarter. The incentive management fees related to capital gains decreased from a $1.1 million expense for the three months ended November 30, 2020 to a $0.9 million expense for the three months ended November 30, 2021, both reflecting the incentive fee income on net unrealized appreciation recognized during both these periods.

For the nine months ended November 30, 2021, incentive management fees increased $7.7 million, compared to the nine months ended November 30, 2020. The first part of the incentive management fees increased from $4.0 million for the nine months ended November 30, 2020 to $4.8 million for the nine months ended November 30, 2021, reflecting the increased performance during this quarter. The incentive management fees related to capital gains increased from a $(2.0) million benefit for the nine months ended November 30, 2020 to a $4.9 million expense for the nine months ended November 30, 2021, reflecting the incentive fee income on net unrealized depreciation recognized last year and the incentive fee expense on net unrealized appreciation this quarter across numerous investments.

For the three and nine months ended November 30, 2021, professional fees decreased $0.6 million, or 120.8%, and decreased $0.4 million, or 31.3%, respectively, compared to the three and nine months ended November 30, 2020. This decrease primarily reflects optimization across accounting, legal and consulting fees in connection with an increase in our assets and the Company bringing certain services in-house.

For the three and nine months ended November 30, 2021, administrator expenses increased $0.05 million, or 8.1%, and increased $0.3 million, or 16.4%, respectively, compared to the three and nine months ended November 30, 2020.

As discussed above, the increase in interest and debt financing expenses for the three months ended November 30, 2021 compared to the three months ended November 30, 2020 is primarily attributable to an increase in the average dollar amount of outstanding debt. During the three months ended November 30, 2021 and November 30, 2020, the average borrowings outstanding under the Encina Credit Facility and the Madison Credit Facility was $9.2 million and $0.0 million, respectively. For the three months ended November 30, 2021 and November 30, 2020, the average borrowings outstanding of SBA debentures was $176.6 million and $170.3 million, respectively. For the three months ended November 30, 2021 and November 30, 2020, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 2.44% and 2.97%, respectively. During the three months ended November 30, 2021 and November 30, 2020, the average dollar amount of our 6.25% fixed-rate 2025 Notes outstanding was $0.0 million and $60.0 million, respectively. During the three months ended November 30, 2021 and November 30, 2020, the weighted average dollar amount of our 7.25% fixed-rate 2025 Notes outstanding was $43.1 million and $43.1 million, respectively. During the three months ended November 30, 2021 and November 30, 2020, the weighted average dollar amount of our 7.75% fixed-rate 2025 Notes outstanding was $5.0 million and $0.0 million, respectively. During the three months ended November 30, 2021 and November 30, 2020, the average dollar amount of our 6.25% fixed-rate 2027 Notes outstanding was $15.0 million and $0.0 million, respectively. During the three months ended November 30, 2021 and November 30, 2020, the average dollar amount of our 4.375% fixed-rate 2026 Notes outstanding was $175.0 million and $0.0 million, respectively.

As discussed above, the increase in interest and debt financing expenses for the nine months ended November 30, 2021 compared to the nine months ended November 30, 2020 is primarily attributable to an increase in the average dollar amount of outstanding debt. During the nine months ended November 30, 2021 and November 30, 2020, the average borrowings outstanding under the Encina Credit Facility and the Madison Credit Facility was $12.5 million and $0.0 million, respectively. For the nine months ended November 30, 2021 and November 30, 2020, the average borrowings outstanding of SBA debentures was $172.0 million and $165.9 million, respectively. For the nine months ended November 30, 2021 and November 30, 2020, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 2.66% and 4.57%, respectively. During the nine months ended November 30, 2021 and November 30, 2020, the average dollar amount of our 6.25% fixed-rate 2025 Notes outstanding was $39.3 million and $60.0 million, respectively. During the nine months ended November 30, 2021 and November 30, 2020, the weighted average dollar amount of our 7.25% fixed-rate 2025 Notes outstanding was $43.1 million and $43.1 million, respectively. During the nine months ended November 30, 2021 and November 30, 2020, the weighted average dollar amount of our 7.75% fixed-rate 2025 Notes outstanding was $5.0 million and $5.0 million, respectively. During the nine months ended November 30, 2021 and November 30, 2020, the average dollar amount of our 6.25% fixed-rate 2027 Notes outstanding was $15.0 million and $0.0 million, respectively. During the nine months ended November 30, 2021 and November 30, 2020, the average dollar amount of our 4.375% fixed-rate 2026 Notes outstanding was $115.3 million and $0.0 million, respectively.

For the three months ended November 30, 2021 and November 30, 2020, there were income tax expense (benefits) of $0.04 million and $0.03 million, respectively. For the nine months ended November 30, 2021 and November 30, 2020, there were income tax expense (benefits) of $0.02 million and $0.03 million, respectively. This relates to net deferred federal and state income tax expense (benefit) with respect to operating gains and losses and income derived from equity investments held in the taxable blockers, as well as current federal and state income taxes on those operating gains and losses when realized.

Net realized gains (losses) on sales of investments

For the three months ended November 30, 2021, the Company had $66.4 million of sales, repayments, exits or restructurings resulting in $9.9 million of net realized gains. For the nine months ended November 30, 2021, the Company had $216.2 million of sales, repayments, exits or restructurings resulting in $13.3 million of net realized gains.

Nine Months ended November 30, 2021

Issuer	Asset Type	Gross Proceeds		Cost		Net Realized Gain (Loss)
GreyHeller LLC	Equity Interests	$	8,178,457	$	850,000	$	7,328,457
Lexipol, LLC	Equity Interests	$	10,792,127	$	10,792,268		(141	)
My Alarm Center, LLC	Equity Interests		-		4,867,102		(4,867,102	)
Passageways, Inc.	Equity Interests		7,439,802		1,000,000		6,439,802
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-1-R-3 Note	Structured Finance Securities		8,360,133		8,500,000		(139,867	)
Texas Teachers of Tomorrow, LLC	Equity Interests		3,338,611		750,000		2,588,611
V Rental Holdings LLC	Equity Interests		2,344,817		365,914		1,978,903

The $7.3 million of net realized gains was from the sales of the equity position in the Company’s GreyHeller LLC investment.

The $6.4 million of net realized gains was from the sales of the equity position in the Company’s Passageways Inc. investment.

The $4.9 million of net realized loss was from the Company’s My Alarm Center, LLC investment that was deemed worthless during this period.

The $2.6 million of net realized gains was from the sales of the equity position in the Company’s Texas Teachers of Tomorrow, LLC investment.

The $1.9 million of net realized gains was from the sales of the equity position in the Company’s V Rental Holdings LLC investment.

The $0.1 million of net realized loss was from the repayment of the structured finance securities in the Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-1-R-3 Note.

For the three months ended November 30, 2020, the Company had $18.3 million of sales, repayments, exits or restructurings resulting in $0.0 million of net realized gains. For the nine months ended November 30, 2020, the Company had $50.9 million of sales, repayments, exits or restructurings resulting in $0.02 million of net realized gains.

Net change in unrealized appreciation (depreciation) on investments

For the three months ended November 30, 2021, our investments had a net change in unrealized depreciation of $6.0 million versus a net change in unrealized appreciation of $6.0 million for the three months ended November 30, 2020. For the nine months ended November 30, 2021, our investments had a net change in unrealized appreciation of $14.1 million versus a net change in unrealized depreciation of $9.4 million for the nine months ended November 30, 2020. The most significant cumulative net change in unrealized appreciation (depreciation) for the nine months ended November 30, 2020 were the following (dollars in thousands):

Nine Months ended November 30, 2021

Issuer	Asset Type	Cost		Fair Value		Total Unrealized Appreciation (Depreciation)			YTD Change in Unrealized Appreciation (Depreciation)
My Alarm Center, LLC	Equity Interests	$	-	$	-	$	-		$	4,686
C2 Educational Systems	First Lien Term Loan & Equity Interests		18,979		17,896		(1,083	)		1,416
Netreo Holdings, LLC	First Lien Term Loan & Equity Interests		24,056		33,934		9,878			4,290
PDDS Buyer, LLC	First Lien Term Loan & Equity Interests		22,865		26,400		3,535			2,711
Schoox, Inc.	Equity Interests		476		3,447		2,971			2,971
Top Gun Pressure Washing, LLC	First Lien Term Loan & Equity Interests		10,908		10,995		87			1,154
Destiny Solutions Inc.	First Lien Term Loan & Equity Interests		3,969		6,622		2,653			1,626
Village Realty Holdings LLC	First Lien Term Loan & Equity Interests		-		-		-			(2,183	)
Passageways, Inc.	First Lien Term Loan & Equity Interests		-		-		-			(2,311	)

The $4.7 million net change in unrealized appreciation in our investment in My Alarm Center, LLC was driven by the reversal of previously recognized unrealized depreciation reclassified to realized losses.

The $1.4 million net change in unrealized appreciation in our investment in C2 Education Systems was driven by improved financial performance.

The $4.3 million net change in unrealized appreciation in our investment in Netreo Holdings, LLC was driven by growth and improved financial performance.

The $2.7 million net change in unrealized appreciation in our investment in PDDS Buyer, LLC was driven by overall strong company performance.

The $3.0 million net change in unrealized appreciation in our investment in Schoox, Inc. was driven by overall strong company performance.

The $1.2 million net change in unrealized appreciation in our investment in Top Gun Pressure Washing, LLC was driven by growth, improved financial performance, and a reduced leverage profile.

The $1.6 million net change in unrealized appreciation in our investment in Destiny Solutions Inc. was driven by growth and overall strong financial performance.

The $2.2 million net change in unrealized depreciation in our investment in Village Realty Holdings, LLC was driven by the sale of that investment, resulting in a reversal of previously recognized unrealized appreciation reclassified to realized gains.

The $2.3 million net change in unrealized depreciation in our investment in Passageways, Inc. was driven by the sale of that investment, resulting in a reversal of previously recognized unrealized appreciation reclassified to realized gains.

The most significant cumulative net change in unrealized appreciation for the nine months ended November 30, 2020 were the following (dollars in thousands):

Nine Months ended November 30, 2020

Issuer	Asset Type	Cost		Fair Value		Total Unrealized Appreciation			YTD Change in Unrealized Appreciation
Knowland Group, LLC	Second Lien Term Loan	$	15,768	$	12,118	$	(3,650	)	$	(3,544	)
C2 Educational Systems	First Lien Term Loan		15,993		12,987		(3,006	)		(3,024	)
ArbiterSports, LLC	First Lien Term Loan		26,793		24,521		(2,272	)		(2,246	)
Roscoe Medical, Inc.	Second Lien Term Loan & Equity Interests		4,708		4,338		(370	)		2,201
My Alarm Center, LLC	Equity Interests		4,867		306		(4,561	)		(1,691	)
Elyria Foundry Company, L.L.C.	Second Lien Term Loan & Equity Interests		11,019		1,998		(9,021	)		(1,276	)

The net changes in unrealized depreciation noted above primarily relate to the impact of COVID-19, resulting in changes to market spreads, EBITDA multiples and/or revised portfolio company performance, following the events since March 2020.

Changes in net assets resulting from operations

For the three months ended November 30, 2021, we recorded a net increase in net assets resulting from operations of $8.3 million. Based on 11,450,181 weighted average common shares outstanding as of November 30, 2021, our per share net increase in net assets resulting from operations was $0.73 for the three months ended November 30, 2021. For the three months ended November 30, 2020, we recorded a net increase in net assets resulting from operations of $6.4 million. Based on 11,169,817 weighted average common shares outstanding as of November 30, 2020, our per share net increase in net assets resulting from operations was $0.57 for the three months ended November 30, 2020.

For the nine months ended November 30, 2021, we recorded a net increase in net assets resulting from operations of $37.3 million. Based on 11,312,991 weighted average common shares outstanding as of November 30, 2021, our per share net increase in net assets resulting from operations was $3.30 for the nine months ended November 30, 2021. For the nine months ended November 30, 2020, we recorded a net increase in net assets resulting from operations of $5.5 million. Based on 11,198,287 weighted average common shares outstanding as of November 30, 2020, our per share net decrease in net assets resulting from operations was $0.49 for the three months ended November 30, 2020.

For the three and nine months ended November 30, 2021, we recorded a net realized loss on extinguishments of debts of $0.8 million and $2.3 million, respectively. These realized losses related to the acceleration of unamortized deferred financing costs following the repayment of the 2025 6.25% Notes, the redemption of various SBA Debentures and the repayment and termination of the Madison Credit Facility.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

We intend to continue to generate cash primarily from cash flows from operations, including interest earned from our investments in debt in middle market companies, interest earned from the temporary investment of cash in U.S. government securities and other high-quality debt investments that mature in one year or less, future borrowings and future offerings of securities.

Although we expect to fund the growth of our investment portfolio through the net proceeds from future equity offerings, including our dividend reinvestment plan (“DRIP”), and issuances of senior securities or future borrowings, to the extent permitted by the 1940 Act, we cannot assure you that our plans to raise capital will be successful. In this regard, because our common stock has historically traded at a price below our current net asset value per share and we are limited in our ability to sell our common stock at a price below net asset value per share, we have been and may continue to be limited in our ability to raise equity capital.

In addition, we intend to distribute to our stockholders substantially all of our operating taxable income in order to satisfy the distribution requirement applicable to RICs under the Code. In satisfying this distribution requirement, 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 fulfilling its RIC distribution requirements as counting toward its RIC distribution requirements if each stockholder may elect 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% of the aggregate declared distribution. We may rely on the revenue procedure in future periods to satisfy our RIC distribution requirement.

Also, as a BDC, we generally are required to meet a coverage ratio of total assets, less liabilities and indebtedness not represented by senior securities, to total senior securities, which include all of our borrowings and any outstanding preferred stock, of at least 200.0%, reduced to 150.0% effective April 16, 2019 following the approval received from the non-interested board of directors on April 16, 2018. This requirement limits the amount that we may borrow. Our asset coverage ratio, as defined in the 1940 Act, was 236.7% as of November 30, 2021 and 347.1% as of February 28, 2021. To fund growth in our investment portfolio in the future, we anticipate needing to raise additional capital from various sources, including the equity markets and other debt-related markets, which may or may not be available on favorable terms, if at all.

Consequently, we may not have the funds or the ability to fund new investments, to make additional investments in our portfolio companies, to fund our unfunded commitments to portfolio companies, to pay dividends or to repay borrowings. Also, the illiquidity of our portfolio investments may make it difficult for us to sell these investments when desired and, if we are required to sell these investments, we may realize significantly less than their recorded value.

Madison Revolving Credit Facility

The senior secured revolving credit facility we entered into with Madison Capital Funding LLC (the “Madison Credit Facility”) on June 30, 2010, which was most recently amended on September 3, 2021 and then fully repaid and terminated on October 4, 2021.

As of February 28, 2021, we had no outstanding borrowings under the Madison Credit Facility. Our borrowing base under the Madison Credit Facility at February 28, 2021 was $38.9 million.

Encina Credit Facility

Below is a summary of the terms of the senior secured revolving credit facility we entered into with Encina Lender Finance, LLC on October 4, 2021.

Commitment. The Company entered into a senior secured revolving credit facility in the initial facility amount of $50.0 million (the “Facility Amount”). The Company has the ability to request an increase in the Facility Amount during the first two years following the closing date to up to $75.0 million. The commitment termination date is October 4, 2024.

Availability. The Company can draw up to the lesser of (i) the Facility Amount and (ii) the Borrowing Base. The Borrowing Base is an amount equal to (i) the difference of (A) the product of the applicable advance rate which varies from 50.0% to 75.0% depending on the type of loan asset (Defaulted Loans being excluded in that they carry an advance rate of 0%) and the value, determined in accordance with the Encina Credit Facility (the “Adjusted Borrowing Value”), of certain “eligible” loan assets pledged as security for the loan (the “Borrowing Base Value”) and (B) the Excess Concentration Amount, as calculated in accordance with the Encina Credit Facility, plus (ii) any amounts held in the Prefunding Account and, without duplication, Excess Cash held in the Collection Account, less (iii) the product of (a) the amount of any undrawn funding commitments the Company has under any loan asset and (b) the Unfunded Exposure Haircut Percentage, and less (iv) $100,000. Each loan asset held by the Company as of the date on which the Encina Credit Facility was closed was valued as of that date and each loan asset that the Company acquires after such date will be valued at the lowest of its fair value, its face value (excluding accrued interest) and the purchase price paid for such loan asset. Adjustments to the value of a loan asset will be made to reflect, among other things and under certain circumstances, changes in its fair value, a default by the obligor on the loan asset, insolvency of the obligor, acceleration of the loan asset, and certain modifications to the terms of the loan asset.

The Encina Credit Facility contains limitations on the type of loan assets that are “eligible” to be included in the Borrowing Base and as to the concentration level of certain categories of loan assets in the Borrowing Base such as restrictions on geographic and industry concentrations, asset size and quality, payment frequency, status and terms, average life, and collateral interests. In addition, if an asset is to remain an “eligible” loan asset, the Company may not make changes to the payment, amortization, collateral and certain other terms of the loan assets without the consent of the administrative agent that will either result in subordination of the loan asset or be materially adverse to the lenders.

The Encina Credit Facility requires certain minimum drawn amounts. For the period beginning on the closing date and ending April 4, 2022, the minimum funding amount is $12.5 million. For the period beginning on April 5, 2022 through maturity, the minimum funding amount is the greater of $25.0 million and 50% of the Facility Amount in effect from time to time.

Collateral. The Encina Credit Facility is secured by assets of Saratoga Investment Funding II LLC (“SIF II”) and pledged to the lender under the credit facility. SIF II is a wholly owned special purpose entity formed by the Company for the purpose of entering into the Encina Credit Facility.

Interest Rate and Fees. Under the Encina Credit Facility, funds are borrowed from or through certain lenders at the greater of the prevailing LIBOR rate and 0.75%, plus an applicable margin of 4.00%. The Encina Credit Facility includes benchmark replacement provisions which permit the Administrative Agent and the Borrower to select a replacement rate upon the unavailability of LIBOR. In addition, the Company pays the lenders a commitment fee of 0.75% per year (or 0.50% if the ratio of advances outstanding to aggregate commitments is greater than or equal to 50%) on the unused amount of the Encina Credit Facility for the duration of the term of the credit facility. Accrued interest and commitment fees are payable monthly in arrears. The Company was also obligated to pay certain other fees to the lenders in connection with the closing of the Encina Credit Facility.

Collateral Tests. It is a condition precedent to any borrowing under the Encina Credit Facility that the principal amount outstanding under the Encina Credit Facility, after giving effect to the proposed borrowings, not exceed the Borrowing Base (the “Borrowing Base Test”). In addition to satisfying the Borrowing Base Test, the following tests must also be satisfied (together with Borrowing Base Test, the “Collateral Tests”):

Interest Coverage Ratio. The ratio (expressed as a percentage) of interest collections with respect to pledged loan assets, less certain fees and expenses relating to the Encina Credit Facility, to accrued interest and commitment fees payable to the lenders under the Encina Credit Facility for the last 6 payment periods must equal at least 175.0%.

Overcollateralization Ratio. The ratio (expressed as a percentage) of the aggregate Adjusted Borrowing Value of “eligible” pledged loan assets plus the fair value of certain ineligible pledged loan assets (in each case, subject to certain adjustments) to outstanding borrowings under the Encina Credit Facility plus the Unfunded Exposure Amount must equal at least 200.0%.

The Encina Credit Facility also may require payment of outstanding borrowings or replacement of pledged loan assets upon the Company’s breach of its representation and warranty that pledged loan assets included in the Borrowing Base are “eligible” loan assets. Such ineligible collateral loans will be excluded from the calculation of the Borrowing Base and may lead to a Borrowing Base Deficiency, which may be cured by effecting one or more (or any combination thereof) of the following actions: (A) deposit into or credit to the collection account cash and eligible investments, (B) repay outstanding borrowings (together with certain costs and expenses), (C) sell or substitute loan assets in accordance with the Encina Credit Facility, or (D) pledge additional loan assets as collateral. Compliance with the Collateral Tests is also a condition to the discretionary sale of pledged loan assets by the Company.

Priority of Payments. The priority of payments provisions of the Encina Credit Facility require, after payment of specified fees and expenses, that collections of interest from the loan assets and, to the extent that these are insufficient, collections of principal from the loan assets, be applied on each payment date to payment of outstanding borrowings if the Borrowing Base Test, the Overcollateralization Ratio and the Interest Coverage Ratio would not otherwise be met.

Operating Expenses. The priority of payments provision of the Encina Credit Facility provides for the payment of certain operating expenses of the Company out of collections on interest and principal in accordance with the priority established in such provision. The operating expenses payable pursuant to the priority of payment provisions is limited to $200,000 per annum.

Covenants; Representations and Warranties; Events of Default. The Encina Credit Facility contains customary representations and warranties, affirmative covenants, negative covenants and events of default. The Encina Credit Facility does not contain grace periods for breach by the Company of any negative covenants or of certain of the affirmative covenants, including, without limitation, those related to preservation of the existence and separateness of the Company. Other events of default under the Encina Credit Facility include, among other things, the following:

Failure of the Company to maintain an Interest Coverage Ratio of less than 175.0%;

Failure of the Company to maintain an Overcollateralization Ratio of less than 200.0%;

the filing of certain ERISA or tax liens on assets of the Company or the Equityholder;

failure by Specified Holders to collectively, directly or indirectly, own and control at least 51% of the outstanding equity interests of Saratoga Investment Advisor, or (y) possess the right to elect (through contract, ownership of voting securities or otherwise) at all times a majority of the board of directors (or similar governing body) of Saratoga Investment Advisor and to direct the management policies and decisions of Saratoga Investment Advisor, or (ii) the dissolution, termination or liquidation in whole or in part, transfer or other disposition, in each case, of all or substantially all of the assets of, Saratoga Investment Advisor;

indictment or conviction of Saratoga Investment Advisors or any “key person” for a felony offense, or any fraud, embezzlement or misappropriation of funds by Saratoga Investment Advisors or any “key person” and, in the case of “key persons,” without a reputable, experienced individual reasonably satisfactory to Encina Lender Finance appointed to replace such key person within 30 days;

resignation, termination, disability or death of a “key person” or failure of any “key person” to provide active participation in Saratoga Investment Advisors’ daily activities, all without a reputable, experienced individual reasonably satisfactory to Encina Lender Finance appointed within 30 days.

Fees and Expenses. The Company paid certain fees and reimbursed Encina Lender Finance, LLC for the aggregate amount of all documented, out-of-pocket costs and expenses, including the reasonable fees and expenses of lawyers, incurred by Encina Lender Finance, LLC in connection with the Encina Credit Facility and the carrying out of any and all acts contemplated thereunder up to and as of the date of closing. These amounts totaled $1.4 million.

As of November 30, 2021, we had $12.5 million outstanding borrowings under the Encina Credit Facility and $207.0 million of SBA- guaranteed debentures outstanding (which are discussed below).

SBA-guaranteed debentures

In addition, we, through two wholly owned subsidiaries, sought and obtained licenses from the SBA to operate an SBIC. In this regard, on March 28, 2012, our wholly owned subsidiary, Saratoga Investment Corp. SBIC LP, received a license from the SBA to operate as an SBIC under Section 301(c) of the Small Business Investment Act of 1958 and on August 14, 2019, our wholly owned subsidiary, Saratoga Investment Corp. SBIC II LP, also received a license. SBICs are designated 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.

The SBIC licenses allows our SBIC subsidiaries to obtain leverage by issuing SBA-guaranteed debentures. SBA-guaranteed debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten-year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with 10-year maturities.

SBA regulations previously limited the amount that our SBIC subsidiary may borrow to a maximum of $150.0 million when it has at least $75.0 million in regulatory capital, receives a capital commitment from the SBA and has been through an examination by the SBA subsequent to licensing. This maximum has been increased by SBA regulators for new licenses to $175.0 million of SBA debentures when it has at least $87.5 million in regulatory capital. The new license will provide up to $175.0 million in additional long-term capital in the form of SBA-guaranteed debentures. The SBIC LP and SBIC II LP are regulated by the SBA. 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. Our wholly owned SBIC subsidiaries are able to borrow funds from the SBA against regulatory capital (which generally approximates equity capital in the respective SBIC) and is subject to customary regulatory requirements, including, but not limited to, a periodic examination by the SBA. With this license approval, Saratoga can grow its SBA relationship from $150.0 million to $325.0 million of committed capital.

We received exemptive relief from the SEC to permit us to exclude the senior securities issued by of our SBIC subsidiaries from the definition of senior securities in the asset coverage requirement applicable to the Company under the 1940 Act. This allows us increased flexibility under the asset coverage requirement by permitting us to borrow up to $325.0 million more than we 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, our non-interested board of directors approved of our 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% asset coverage ratio became effective on April 16, 2019.

As of November 30, 2021, our SBIC LP subsidiary had $75.0 million in regulatory capital and $108.0 million in SBA-guaranteed debentures outstanding and our SBIC II LP subsidiary had $87.5 million in regulatory capital and $99.0 million in SBA-guaranteed debentures outstanding.

Unsecured notes

In May 2013, the Company issued $48.3 million in aggregate principal amount of 2020 Notes. The 2020 Notes were redeemed in full on January 13, 2017 and are no longer listed on the NYSE.

On May 29, 2015, we entered into a Debt Distribution Agreement with Ladenburg Thalmann & Co. through which we may offer for sale, from time to time, up to $20.0 million in aggregate principal amount of the 2020 Notes through an ATM offering. Prior to the 2020 Notes being redeemed in full, the Company had sold 539,725 bonds with a principal of $13.5 million at an average price of $25.31 for aggregate net proceeds of $13.4 million (net of transaction costs).

On December 21, 2016, we issued $74.5 million in aggregate principal amount of our 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 on January 13, 2017, which amounted to $61.8 million, 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 issued and outstanding 2023 Notes and are no longer listed on the NYSE.

On August 28, 2018, the Company issued $40.0 million in aggregate principal amount of the 6.25% 2025 Notes for net proceeds of $38.7 million after deducting underwriting commissions of approximately $1.3 million. Offering costs incurred were approximately $0.3 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $5.0 million aggregate principal amount of 6.25% 2025 Notes within 30 days. Interest on the 6.25% 2025 Notes was paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 6.25% per year. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes.

On February 5, 2019, the Company 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. 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. Offering costs incurred were approximately $0.2 million. The issuance included the full exercise of the underwriters’ option to purchase an additional $2.5 million aggregate principal amount of 6.25% 2025 Notes within 30 days. The net proceeds from this offering were used for general corporate purposes in accordance with our investment objective and strategies. The financing costs and discount of $1.0 million related to the 6.25% 2025 Notes have been capitalized and are being amortized over the term of the 6.25% 2025 Notes.

On August 31, 2021, the Company redeemed $60.0 million in aggregate principal amount of the issued and outstanding 6.25% 2025 Notes at par, plus the accrued and unpaid interest thereon, through, but excluding, the redemption date of August 31, 2021. The 6.25% 2025 Notes were listed on the NYSE under the trading symbol of “SAF” with a par value of $25.00 per share and effective as of August 31, 2021, have been delisted following the redemption.

On June 24, 2020, the Company issued $37.5 million in aggregate principal amount of 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% unsecured notes due 2025. Net proceeds to the Company were $5.4 million after deducting underwriting commissions of approximately $0.2 million. Interest on the 7.25% 2025 Notes is paid quarterly in arrears on February 28, May 31, August 31 and November 30, at a rate of 7.25% per year. The 7.25% 2025 Notes mature on June 30, 2025 and commencing June 24, 2022, may be redeemed in whole or in part at any time or from time to time at our option. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $1.6 million related to the 7.25% 2025 Notes have been capitalized and are being amortized over the term of the 7.25% 2025 Notes. The 7.25% 2025 Notes are listed on the NYSE under the trading symbol “SAK” with a par value of $25.00 per share.

At November 30, 2021, the total 7.25% 2025 Notes outstanding was $43.1 million.

On July 9, 2020, the Company issued $5.0 million aggregate principal amount of the 7.75% 2025 Notes 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, 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, subject to a fee depending on the date of repayment. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.3 million related to the 7.75% Notes 2025 have been capitalized and are being amortized over the term of the Notes. The 7.75% 2025 Notes are unlisted and have a par value of $25.00 per share.

At November 30, 2021, the total 7.75% 2025 Notes outstanding was $5.0 million.

On December 29, 2020, the Company issued $5.0 million aggregate principal amount of 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. The 6.25% Notes 2027 mature on December 29, 2027 and may be redeemed in whole or in part at any time or from time to time at our option, on or after December 29, 2024. The net proceeds from the offering were used for general corporate purposes in accordance with our investment objective and strategies. Financing costs of $0.1 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes.

On January 28, 2021, the Company issued $10.0 million aggregate principal amount of the Second 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. 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 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 $0.3 million related to the 6.25% Notes 2027 have been capitalized and are being amortized over the term of the Notes.

At November 30, 2021, the total 6.25% 2027 Notes outstanding was $15.0 million.

On March 10, 2021, the Company issued $50.0 million aggregate principal amount of 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. 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, or 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 Notes.

On July 15, 2021, the Company issued an additional $125.0 million 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 estimated offering expenses of approximately $0.2 million 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. The Additional 4.375% 2026 Notes were treated as a single series with the existing 4.375% 2026 Notes under the indenture and had the same terms as the existing 4.375% 2026 Notes.

At November 30, 2021, the total 4.375% Notes outstanding was $175.0 million.

At November 30, 2021 and February 28, 2021, the fair value of investments, cash and cash equivalents and cash and cash equivalents, reserve accounts were as follows:

	November 30, 2021					February 28, 2021
	Fair Value		Percentage of Total			Fair Value		Percentage of Total
	($ in thousands)
Cash and cash equivalents	$	120,882		15.4	%	$	18,828		3.2	%
Cash and cash equivalents, reserve accounts		23,186		2.9			11,087		1.9
First lien term loans		504,460		64.1			440,456		75.4
Second lien term loans		49,808		6.3			24,930		4.3
Unsecured term loans		2,759		0.4			2,141		0.4
Structured finance securities		42,676		5.4			49,779		8.5
Equity interests		43,644		5.5			37,007		6.3
Total	$	787,415		100.0	%	$	584,228		100.0	%

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 added to the equity ATM program. 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 September 24, 2014, the Company announced the approval of an open market share repurchase plan that allowed it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published consolidated financial statements (the “Share Repurchase Plan”). On October 7, 2015, our board of directors extended the Share Repurchase Plan for another year and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 400,000 shares of its common stock. On October 5, 2016, our board of directors extended the Share Repurchase Plan for another year to October 15, 2017 and increased the number of shares the Company is permitted to repurchase at prices below its NAV, as reported in its then most recently published consolidated financial statements, to 600,000 shares of its common stock. On October 10, 2017, January 8, 2019 and January 7, 2020, our board of directors extended the Share Repurchase Plan for another year to October 15, 2018, January 15, 2020 and January 15, 2021, respectively, each time leaving the number of shares unchanged at 600,000 shares of its common stock. On May 4, 2020, our board of directors increased the Share Repurchase Plan to 1.3 million shares of common stock. On January 5, 2021, our board of directors extended the Shares Repurchase Plan for another year to January 15, 2022, leaving the number of shares unchanged at 1.3 million shares of common stock. As of November 30, 2021, the Company purchased 458,435 shares of common stock, at the average price of $18.64 for approximately $8.6 million pursuant to the Share Repurchase Plan. During the three months ended November 30, 2021, there was no activity. During the nine months ended November 30, 2021, the Company purchased 49,623 shares of common stock, at the average price of $25.23 for approximately $1.3 million pursuant to the Share Repurchase Plan.

On August 26, 2021, the Company declared a dividend of $0.52 per share payable on September 28, 2021, to common stockholders of record on September 14, 2021. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $4.9 million in cash and 38,016 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $26.76 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on September 15, 16, 17, 20, 21, 22, 23, 24, 27 and 28, 2021.

On May 27, 2021, the Company declared a dividend of $0.44 per share payable on June 29, 2021, to common stockholders of record on June 15, 2021. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $4.1 million in cash and 33,100 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $25.03 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 16, 17, 18, 21, 22, 23, 24, 25, 28 and 29, 2021.

On March 22, 2021, the Company declared a dividend of $0.43 per share payable on April 22, 2021, to common stockholders of record on April 8, 2021. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $3.9 million in cash and 38,580 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.69 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on April 9,12, 13, 14, 15, 16, 19, 20, 21 and 22, 2021.

On January 5, 2021, our board of directors declared a dividend of $0.42 per share, which was paid on February 10, 2021, to common stockholders of record as of January 26, 2021. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.8 million in cash and 41,388 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.75 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on January 28, 29 and February 1, 2, 3, 4, 5, 8, 9 and 10, 2021.

On October 7, 2020, our board of directors declared a dividend of $0.41 per share, which was paid on November 10, 2020, to common stockholders of record as of October 26, 2020. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.8 million in cash and 45,706 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.63 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on October 28, 29, 30 and November 2, 3, 4, 5, 6, 9 and 10, 2020.

On July 7, 2020, the Company declared a dividend of $0.40 per share payable on August 12, 2020, to common stockholders of record on July 27, 2020. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $3.7 million in cash and 47,098 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.45 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on July 30, 31 and August 3, 4, 5, 6, 7, 10, 11 and 12, 2020.

On January 8, 2020, the Company declared a dividend of $0.56 per share, which was paid on February 6, 2020, to common stockholders of record on January 24, 2020. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $5.4 million in cash and 35,682 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $25.44 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on January 24, 27, 28, 29, 30, 31 and February 3, 4, 5 and 6, 2020.

On August 27, 2019, the Company declared a dividend of $0.56 per share, which was paid on September 26, 2019, to common stockholders of record on September 13, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $4.5 million in cash and 34,575 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.34 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on September 13, 16, 17, 18, 19, 20, 23, 24, 25 and 26, 2019.

On May 28, 2019, our board of directors declared a dividend of $0.55 per share, which was paid on June 27, 2019, to common stockholders of record as of June 13, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.6 million in cash and 31,545 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $22.65 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 14, 17, 18, 19, 20, 21, 24, 25, 26 and 27, 2019.

On February 26, 2019, our board of directors declared a dividend of $0.54 per share, which was paid on March 28, 2019, to common stockholders of record as of March 14, 2019. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.5 million in cash and 31,240 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.36 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on March 15, 18, 19, 20, 21, 22, 25, 26, 27 and 28, 2019.

On November 27, 2018, our board of directors declared a dividend of $0.53 per share, which was paid on January 2, 2019, to common stockholders of record on December 17, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the Company’s DRIP. Based on shareholder elections, the dividend consisted of approximately $3.4 million in cash and 30,796 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $18.88 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on December 18, 19, 20, 21, 24, 26, 27, 28, 31, 2018 and January 2, 2019.

On August 28, 2018, our board of directors declared a dividend of $0.52 per share, which was paid on September 27, 2018, to common stockholders of record as of September 17, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.3 million in cash and 25,862 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $22.35 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on September 14, 17, 18, 19, 20, 21, 24, 25, 26 and 27, 2018.

On May 30, 2018, our board of directors declared a dividend of $0.51 per share, which was paid on June 27, 2018, to common stockholders of record as of June 15, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $2.7 million in cash and 21,562 newly issued shares of common stock, or 0.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $23.72 per share, which equaled 95.0% of the volume weighted average trading price per share of the common stock on June 14, 15, 18, 19, 20, 21, 22, 25, 26 and 27, 2018.

On February 26, 2018, our board of directors declared a dividend of $0.50 per share, which was paid on March 26, 2018, to common stockholders of record as of March 14, 2018. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $2.6 million in cash and 25,354 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $19.91 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on March 13, 14, 15, 16, 19, 20, 21, 22, 23 and 26, 2018.

On November 29, 2017, our board of directors declared a dividend of $0.49 per share, which was paid on December 27, 2017, to common stockholders of record on December 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $2.5 million in cash and 25,435 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.14 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on December 13, 14, 15, 18, 19, 20, 21, 22, 26 and 27, 2017.

On August 28, 2017, our board of directors declared a dividend of $0.48 per share, which was paid on September 26, 2017, to common stockholders of record on September 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $2.2 million in cash and 33,551 newly issued shares of common stock, or 0.6% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.19 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on September 13, 14, 15, 18, 19, 20, 21, 22, 25 and 26, 2017.

On May 30, 2017, our board of directors declared a dividend of $0.47 per share, which was paid on June 27, 2017, to common stockholders of record on June 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $2.3 million in cash and 26,222 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.04 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on June 14, 15, 16, 19, 20, 21, 22, 23, 26 and 27, 2017.

On February 28, 2017, our board of directors declared a dividend of $0.46 per share, which was paid on March 28, 2017, to common stockholders of record as of March 15, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $2.0 million in cash and 29,096 newly issued shares of common stock, or 0.5% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $21.38 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on March 15, 16, 17, 20, 21, 22, 23, 24, 27 and 28, 2017.

On January 12, 2017, our board of directors declared a dividend of $0.45 per share, which was paid on February 9, 2017, to common stockholders of record as of January 31, 2017. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.6 million in cash and 50,453 newly issued shares of common stock, or 0.9% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $20.25 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on January 27, 30, 31 and February 1, 2, 3, 6, 7, 8 and 9, 2017.

On October 5, 2016, our board of directors declared a dividend of $0.44 per share, which was paid on November 9, 2016, to common stockholders of record as of October 31, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 58,548 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.12 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on October 27, 28, 31 and November 1, 2, 3, 4, 7, 8 and 9, 2016.

On August 8, 2016, our board of directors declared a special dividend of $0.20 per share, which was paid on September 5, 2016, to common stockholders of record as of August 24, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $0.7 million in cash and 24,786 newly issued shares of common stock, or 0.4% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.06 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on August 22, 23, 24, 25, 26, 29, 30, 31 and September 1 and 2, 2016.

On July 7, 2016, our board of directors declared a dividend of $0.43 per share, which was paid on August 9, 2016, to common stockholders of record as of July 29, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 58,167 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.32 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on July 27, 28, 29 and August 1, 2, 3, 4, 5, 8 and 9, 2016.

On March 31, 2016, our board of directors declared a dividend of $0.41 per share, which was paid on April 27, 2016, to common stockholders of record as of April 15, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.5 million in cash and 56,728 newly issued shares of common stock, or 1.0% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.43 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on April 14, 15, 18, 19, 20, 21, 22, 25, 26 and 27, 2016.

On January 12, 2016, our board of directors declared a dividend of $0.40 per share, which was paid on February 29, 2016, to common stockholders of record as of February 1, 2016. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.4 million in cash and 66,765 newly issued shares of common stock, or 1.2% 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 $13.11 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on February 16, 17, 18, 19, 22, 23, 24, 25, 26 and 29, 2016.

On October 7, 2015, our board of directors declared a dividend of $0.36 per share, which was paid on November 30, 2015, to common stockholders of record as of November 2, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.1 million in cash and 61,029 newly issued shares of common stock, or 1.1% 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 $14.53 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on November 16, 17, 18, 19, 20, 23, 24, 25, 27 and 30, 2015.

On July 8, 2015, our board of directors declared a dividend of $0.33 per share, which was paid on August 31, 2015, to common stockholders of record as of August 3, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $1.1 million in cash and 47,861 newly issued shares of common stock, or 0.9% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.28 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on August 18, 19, 20, 21, 24, 25, 26, 27, 28 and 31, 2015.

On May 14, 2015, our board of directors declared a special dividend of $1.00 per share, which was paid on June 5, 2015, to common stockholders of record on as of May 26, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $3.4 million in cash and 126,230 newly issued shares of common stock, or 2.3% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.47 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on May 22, 26, 27, 28, 29 and June 1, 2, 3, 4 and 5, 2015.

On April 9, 2015, our board of directors declared a dividend of $0.27 per share, which was paid on May 29, 2015, to common stockholders of record as of May 4, 2015. Shareholders had the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $0.9 million in cash and 33,766 newly issued shares of common stock, or 0.6% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $16.78 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on May 15, 18, 19, 20, 21, 22, 26, 27, 28 and 29, 2015.

On September 24, 2014, our board of directors declared a dividend of $0.22 per share, which was paid on February 27, 2015, to common stockholders of record on February 2, 2015. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $0.8 million in cash and 26,858 newly issued shares of common stock, or 0.5% of our outstanding common stock prior to the dividend payment. The number of shares of common stock comprising the stock portion was calculated based on a price of $14.97 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on February 13, 17, 18, 19, 20, 23, 24, 25, 26 and 27, 2015.

Also, on September 24, 2014, our board of directors declared a dividend of $0.18 per share, which was paid on November 28, 2014, to common stockholders of record on November 3, 2014. Shareholders had the option to receive payment of the dividend in cash or receive shares of common stock pursuant to the DRIP. Based on shareholder elections, the dividend consisted of approximately $0.6 million in cash and 22,283 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 $14.37 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on November 14, 17, 18, 19, 20, 21, 24, 25, 26 and 28, 2014.

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On October 30, 2013, our board of directors declared a dividend of $2.65 per share, which was paid on December 27, 2013, to common stockholders of record as of November 13, 2013. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to approximately $2.5 million or $0.53 per share. This dividend was declared in reliance on certain private letter rulings issued by the IRS concluding that a RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder may elect to receive his or her entire distribution in either cash or stock of the RIC subject to a limitation on the aggregate amount of cash to be distributed to all stockholders, which limitation must be at least 20.0% of the aggregate declared distribution. Based on shareholder elections, the dividend consisted of approximately $2.5 million in cash and 649,500 shares of common stock, or 13.7% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 20.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.439 per share, which 95% of equaled the volume weighted average trading price per share of the common stock on December 11, 13, and 16, 2013.

On November 9, 2012, our board of directors declared a dividend of $4.25 per share, which was paid on December 31, 2012, to common stockholders of record as of November 20, 2012. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to approximately $3.3 million or $0.85 per share. Based on shareholder elections, the dividend consisted of $3.3 million in cash and 853,455 shares of common stock, or 22.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 20.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $15.444 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on December 14, 17 and 19, 2012.

On November 15, 2011, our board of directors declared a dividend of $3.00 per share, which was paid on December 30, 2011, to common stockholders of record as of November 25, 2011. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to $2.0 million or $0.60 per share. Based on shareholder elections, the dividend consisted of $2.0 million in cash and 599,584 shares of common stock, or 18.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 20.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $13.117067 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on December 20, 21 and 22, 2011.

On November 12, 2010, our board of directors declared a dividend of $4.40 per share to shareholders payable in cash or shares of our common stock, in accordance with the provisions of the IRS Revenue Procedure 2010-12, which allows a publicly-traded regulated investment company to satisfy its distribution requirements with a distribution paid partly in common stock provided that at least 10.0% of the distribution is payable in cash. The dividend was paid on December 29, 2010 to common shareholders of record on November 19, 2010. Based on shareholder elections, the dividend consisted of $1.2 million in cash and 596,235 shares of common stock, or 22.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 10.0% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $17.8049 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on December 20, 21 and 22, 2010.

On November 13, 2009, our board of directors declared a dividend of $18.25 per share, which was paid on December 31, 2009, to common stockholders of record as of November 25, 2009. Shareholders had the option to receive payment of the dividend in cash, shares of common stock, or a combination of cash and shares of common stock, provided that the aggregate cash payable to all shareholders was limited to $2.1 million or $0.25 per share. Based on shareholder elections, the dividend consisted of $2.1 million in cash and 864,872.5 shares of common stock, or 104.0% of our outstanding common stock prior to the dividend payment. The amount of cash elected to be received was greater than the cash limit of 13.7% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to shareholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $1.5099 per share, which equaled 95% of the volume weighted average trading price per share of the common stock on December 24 and 28, 2009.

We cannot provide any assurance that these measures will provide sufficient sources of liquidity to support our operations and growth.

Our asset coverage ratio, as defined in the 1940 Act, was 236.7% as of November 30, 2021 and 347.1% as of February 28, 2021.

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Contractual obligations

The following table shows our payment obligations for repayment of debt and other contractual obligations at November 30, 2021:

			Payment Due by Period
Long-Term Debt Obligations	Total		Less Than 1 Year		1 - 3 Years		3 - 5 Years		More Than 5 Years
	($ in thousands)
Encina credit facility	$	12,500	$	-	$	12,500	$	-	$	-
SBA debentures		207,000		-		37,000		24,660		145,340
7.25% 2025 Notes		43,125		-		-		43,125		-
7.75% 2025 Notes		5,000		-		-		5,000		-
4.375% 2026 Notes		175,000		-		-		175,000		-
6.25% 2027 Notes		15,000		-		-		-		15,000
Total Long-Term Debt Obligations	$	457,625	$	-	$	49,500	$	247,785	$	160,340

Off-balance sheet arrangements

A summary of the unfunded commitments outstanding as of November 30, 2021 and February 28, 2021 is shown in the table below (dollars in thousands):

	November 30, 2021		February 28, 2021
At Company’s discretion
Artemis Wax Corp.	$	9,700	$	-
Axero Holdings, LLC		3,000		-
Book4Time, Inc.		2,000		2,000
CLEO Communications Holding, LLC		-		630
GreyHeller LLC		-		15,000
LFR Chicken LLC		10,000		-
Netreo Holdings, LLC		1,000		10,000
Passageways, Inc.		-		5,000
Pepper Palace, Inc.		3,000		-
Procurement Partners, LLC		3,000		-
Saratoga Senior Loan Fund I JV LLC		43,750		-
Sceptre Hospitality Resources, LLC		1,000		-
Top Gun Pressure Washing, LLC		175		3,175
Village Realty Holdings LLC		-		10,000
Total		76,625		45,805

At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required
Axero Holdings, LLC		2,000		-
GoReact		-		2,000
Granite Comfort, LP		2,000		-
HemaTerra Holding Company, LLC		2,000		2,000
LFR Chicken LLC		3,000		-
New England Dental Partners		4,500		6,000
Passageways, Inc.		-		2,000
Pepper Palace, Inc.		4,500		-
Procurement Partners, LLC		1,000		1,000
Zollege PBC		1,500		-
		20,500		13,000
Total	$	97,125	$	58,805

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Recent Developments

Subsequent to November 30, 2021, the global outbreak of the coronavirus pandemic has adversely affected some of the Company’s investments and continues to have adverse consequences on the U.S. and global economies. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual portfolio companies, remains uncertain. At the time of this filing, there is no indication of a reportable subsequent event impacting the Company’s financial statements for the quarter ended November 30, 2021. The Company cannot predict the extent to which its financial condition and results of operations will be adversely affected at this time. The potential impact to our results will depend to a large extent on future developments and new information that may emerge regarding the duration and severity of COVID-19. The Company continues to observe and respond to the evolving COVID-19 environment and its potential impact on areas across its business.

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.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our business activities contain elements of market risk. We consider our principal market risk to be the fluctuation in interest rates. Managing this risk is essential to our business. Accordingly, we have systems and procedures designed to identify and analyze our risks, to establish appropriate policies and thresholds and to continually monitor this risk and thresholds by means of administrative and information technology systems and other policies and processes. In addition, U.S. and global capital markets and credit markets have experienced a higher level of stress due to the global COVID-19 pandemic, which has resulted in an increase in the level of volatility across such markets and a general decline in value of the securities held by us.

Interest rate risk is defined as the sensitivity of our current and future earnings to interest rate volatility, including relative changes in different interest rates, variability of spread relationships, the difference in re-pricing intervals between our assets and liabilities and the effect that interest rates may have on our cash flows. Changes in the general level of interest rates can affect our net interest income, which is the difference between the interest income earned on interest earning assets and our interest expense incurred in connection with our interest-bearing debt and liabilities. Changes in interest rates can also affect, among other things, our ability to acquire leveraged loans, high yield bonds and other debt investments and the value of our investment portfolio.

Our investment income is affected by fluctuations in various interest rates, including LIBOR and the prime rate. A large portion of our portfolio is, and we expect will continue to be, comprised of floating rate investments that utilize LIBOR. In connection with the COVID-19 pandemic, the U.S. Federal Reserve and other central banks reduced certain interest rates and LIBOR has decreased, but the U.S Federal Reserve announced three interest rate hikes by the end of 2022. A prolonged reduction in interest rates will reduce our gross investment income and could result in a decrease in our net investment income if such decreases in LIBOR are not offset by a corresponding increase in the spread over LIBOR that we earn on any portfolio investments, a decrease in in our operating expenses, including with respect to our income incentive fee, or a decrease in the interest rate of our floating interest rate liabilities tied to LIBOR. Our interest expense is affected by fluctuations in LIBOR only on our revolving credit facility. At November 30, 2021, we had $457.6 million of borrowings outstanding.

We have analyzed the potential impact of changes in interest rates on interest income from investments. Assuming that our investments as of November 30, 2021 were to remain constant for a full fiscal year and no actions were taken to alter the existing interest rate terms, a hypothetical change of a 1.0% increase in interest rates would cause a corresponding increase of approximately $0.5 million to our interest income. Conversely, a hypothetical change of a 1.0% decrease in interest rates would cause a corresponding decrease of approximately $0.01 million to our interest income.

Changes in interest rates would have no impact to our current interest and debt financing expense, as all our borrowings except for our credit facility are fixed rate, and our credit facility is currently undrawn.

Although management believes that this measure is indicative of our sensitivity to interest rate changes, it does not adjust for potential changes in credit quality, size and composition of the assets on the statements of assets and liabilities and other business developments that could magnify or diminish our sensitivity to interest rate changes, nor does it account for divergences in LIBOR and the commercial paper rate, which have historically moved in tandem but, in times of unusual credit dislocations, have experienced periods of divergence. Accordingly, no assurances can be given that actual results would not materially differ from the potential outcome simulated by this estimate.

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For further information, the following table shows the approximate annualized increase or decrease in the components of net investment income due to hypothetical base rate changes in interest rates, assuming no changes in our investments and borrowings as of November 30, 2021.

		Increase			(Increase)			Increase			Increase
Basis		(Decrease)			Decrease			(Decrease) in Net			(Decrease) in Net
Point		in Interest			in Interest			Investment			Investment
Change		Income			Expense			Income			Income per Share
		($ in thousands)
	-100	$	(16	)	$	-		$	(16	)	$	(0.00	)
	-50		(16	)		-			(16	)		(0.00	)
	-25		(16	)		-			(16	)		(0.00	)
	25		23			-			23			0.00
	50		62			-			62			0.01
	100		544			(43	)		501			0.04
	200		4,278			(168	)		4,110			0.36
	300		9,558			(293	)		9,265			0.82
	400		15,089			(418	)		14,671			1.30

ITEM 4. CONTROLS AND PROCEDURES

(a)

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and our chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934). Based on that evaluation, our chief executive officer and our chief financial officer have concluded that our current disclosure controls and procedures are effective in facilitating timely decisions regarding required disclosure of any material information relating to us that is required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

(b)

There have been no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) of Exchange Act) that occurred during the quarter ended November 30, 2021 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Neither we nor our wholly owned subsidiaries, Saratoga Investment Funding LLC, Saratoga Investment Funding II, LLC, Saratoga Investment Corp. SBIC LP and Saratoga Investment Corp. SBIC II LP, are currently subject to any material legal proceedings.

Item 1A. Risk Factors

In addition to information set forth in this report, you should carefully consider the “Risk Factors” discussed in our most recent Annual Report on Form 10-K filed with the SEC, which could materially affect our business, financial condition and/or operating results. Other than as set forth below, there have been no material changes during the nine months ended November 30, 2021 to the risk factors discussed in “Item 1A. Risk Factors” of our Annual Report on Form 10-K. Additional risks or uncertainties not currently known to us or that we currently deem to be immaterial also may materially affect our business, financial condition and/or operating results.

The interest rates of our loans to our portfolio companies, any LIBOR-linked securities, and other financial obligations that extend beyond 2021 might be subject to change based on recent regulatory changes, including the decommissioning of LIBOR.

LIBOR is the basic rate of interest used in lending transactions between banks on the London interbank market and is widely used as a reference for setting the interest rate on loans globally. Prior to December 31, 2021, we typically used LIBOR as a reference rate in floating-rate loans extended to portfolio companies such that the interest due to us pursuant to a term loan extended to a portfolio company is calculated using LIBOR, including with respect to loans that mature after LIBOR is no longer available. Uncertainty relating to the LIBOR calculation process, the valuation of LIBOR alternatives, and other economic consequences from the phasing out of LIBOR may adversely affect our results of operations, financial condition and liquidity.

On March 5, 2021, the United Kingdom's Financial Conduct Authority (the "FCA"), which regulates LIBOR, announced that it will not compel panel banks to contribute to the overnight 1, 3, 6 and 12 months USD LIBOR tenors after June 30, 2023 and all other tenors after December 31, 2021. On November 16, 2021, the FCA issued a statement confirming that starting January 1, 2022, entities supervised by the FCA will be prohibited from using LIBORs, including USD LIBOR, that will be discontinued as of December 31, 2021 as well as, except in very limited circumstances, those tenors of USD LIBOR that will be discontinued or declared non-representative after June 30, 2023. While LIBOR will cease to exist or be declared non-representative, there continues to be uncertainty regarding the nature of potential changes to specific USD LIBOR tenors, the development and acceptance of alternative reference rates and other reforms.

Central banks and regulators in a number of major jurisdictions (for example, United States, United Kingdom, European Union, Switzerland and Japan) have convened working groups to find, and implement the transition to, suitable replacements for LIBORs and other interbank offered rates ("IBORs"). To identify a successor rate for USD LIBOR, the Alternative Reference Rates Committee (“ARRC”), U.S.-based group convened by the U.S. Federal Reserve Board and the Federal Reserve Bank of New York, was formed. The ARRC has identified the Secured Overnight Financing Rate (“SOFR”) as its preferred alternative rate for LIBOR. SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions. On July 29, 2021, the ARRC formally recommended SOFR as its preferred alternative replacement rate for LIBOR. On July 29, 2021, the ARRC also recommended a forward-looking term rate based on SOFR published by CME Group. Although SOFR appears to be the preferred replacement rate for U.S. dollar LIBOR, at this time, it is not possible to predict the effect of any such changes, any establishment of alternative reference rates or other reforms to LIBOR that may be enacted in the United States, United Kingdom or elsewhere. Alternative reference rates that may replace LIBOR, including SOFR for USD transactions, may not yield the same or similar economic results as LIBOR over the lives of such transactions. There can be no guarantee that SOFR will become the dominant alternative to USD LIBOR or that SOFR will be widely used and other alternatives may or may not be developed and adopted with additional consequences.

On April 6, 2021, legislation was signed into law in the state of New York that provides that contracts, securities and instruments governed by New York law that reference USD LIBOR and that either lack benchmark fallback provisions or include ineffective benchmark fallback provisions in connection with USD LIBOR no longer being published or becoming non-representative, will, by operation of law, refer to a replacement benchmark rate based on SOFR. Despite the adoption of the New York legislation, successful legal challenges against the legislation may render it partially or wholly unconstitutional or unenforceable, e.g., based on other federal or state law grounds.

The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR could have an adverse impact on the market value of and/or transferability of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us, valuation measurements used by us that include LIBOR as an input, our operational processes or our overall financial condition or results of operations. In addition, while the majority of our LIBOR-linked loans contemplate that LIBOR may cease to exist and allow for amendment to a new base rate without the approval of 100% of the lenders, if LIBOR ceases to exist, we could be required, in certain situations, to still need to renegotiate the credit agreements extending beyond 2021 with our portfolio companies that utilize LIBOR as a factor in determining the interest rate, in order to replace LIBOR with the new standard that is established, which may have an adverse effect on our overall financial condition or results of operations. Following the replacement of LIBOR, some or all of these credit agreements may bear interest at a lower interest rate, which could have an adverse impact on the value and liquidity of our investment in these portfolio companies and, as a result, on our results of operations. Such adverse impacts and the uncertainty of the transition could result in disputes and litigation with counterparties and borrowers regarding the implementation of alternative reference rates.

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The COVID-19 pandemic could negatively affect our portfolio companies and our results of our operations.

Periods of market volatility have occurred and could continue to occur in response to pandemics or other events outside of our control. These types of events have adversely affected and could continue to adversely affect operating results for us and for our portfolio companies. For example, the COVID-19 pandemic and new variants of COVID-19, such as the Delta and Omnicron variants, has led to, and for an unknown period of time will continue to lead to, disruptions in local, regional, national and global markets and economies affected thereby, including the United States. The COVID-19 pandemic and restrictive measures taken to contain or mitigate its spread have caused, and are continuing to cause, business shutdowns, or the re-introduction of business shutdowns, cancellations of events and restrictions on travel, significant reductions in demand for certain goods and services, reductions in business activity and financial transactions, supply chain disruptions, labor difficulties and shortages, commodity inflation and elements of economic and financial market instability both globally and in the United States. Such effects will likely continue for the duration of the COVID-19 pandemic, which is uncertain, and for some period thereafter. While several countries, as well as certain states, counties and cities in the United States, have begun to relax the early public health restrictions with a view to partially or fully reopening their economies or lifted such restrictions entirely, many cities, both globally and in the United States, have since experienced a surge in the reported number of cases, hospitalizations and deaths related to the COVID-19 pandemic. This recent increase in cases has led to the re-introduction of restrictions and business shutdowns in certain states, counties and cities in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere.

COVID-19 and the resulting economic dislocations have had adverse consequences for the business operations and financial performance of some of our portfolio companies, which may, in turn impact the valuation of our investments and have adversely affected, and threaten to continue to adversely affect, our operations. We cannot predict the full impact of COVID-19, including the duration of the restrictions described above. As a result, we are unable to predict the duration of these business and supply-chain disruptions, the extent to which COVID-19 will negatively affect our portfolio companies’ operating results or the impact that such disruptions may have on our results of operations and financial condition. With respect to loans to portfolio companies, the Company will be impacted if, among other things, (i) amendments and waivers are granted (or are required to be granted) to borrowers permitting deferral of loan payments or allowing for PIK interest payments, (ii) borrowers default on their loans, are unable to refinance their loans at maturity, or go out of business, or (iii) the value of loans held by the Company decreases as a result of such events and the uncertainty they cause. Portfolio companies may also be more likely to seek to draw on unfunded commitments we have made, and the risk of being unable to fund such commitments is heightened during such periods. Depending on the duration and extent of the disruption to the business operations of our portfolio companies, we expect some portfolio companies, particularly those in vulnerable industries, to experience financial distress and possibly to default on their financial obligations to us and/or their other capital providers. In addition, if such portfolio companies are subjected to prolonged and severe financial distress, we expect some of them to substantially curtail their operations, defer capital expenditures and lay off workers. These developments would be likely to permanently impair their businesses and result in a reduction in the value of our investments in them. Any potential impact to our results of operations will depend to a large extent on future developments and new information that could emerge regarding the duration and severity of the COVID-19 pandemic and any new variants of COVID-19 and the actions taken by authorities and other entities to contain the spread or treat its impact, all of which are beyond our control. These potential impacts, while uncertain, could adversely affect our and our portfolio companies’ operating results and financial condition.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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ITEM 6. EXHIBITS

Listed below are the exhibits which are filed as part of this report (according to the number assigned to them in Item 601 of Regulation S-K):

EXHIBIT INDEX

Exhibit Number		Description
3.1(a)		Articles of Incorporation of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Form 10-Q for the quarterly period ended May 31, 2007).

3.1(b)		Articles of Amendment of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed August 3, 2010).

3.1(c)		Articles of Amendment of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed August 13, 2010).

3.2		Third Amended and Restated Bylaws of Saratoga Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 10-Q filed January 6, 2021)

4.1		Specimen certificate of Saratoga Investment Corp.’s common stock, par value $0.001 per share. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-169135, filed on September 1, 2010).

4.2		Registration Rights Agreement dated July 30, 2010 between GSC Investment Corp., GSC CDO III L.L.C., and the investors party thereto (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).

4.3		Dividend Reinvestment Plan (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on September 24, 2014).

4.4		Form of Indenture by and between the Company and U.S. Bank National Association, as trustee (incorporated by reference to Saratoga Investment Corp.’s Pre-Effective Amendment No. 2 to the Registration Statement on Form N-2, File No. 333-186323 filed April 30, 2013).

4.5		Form of Articles Supplementary Establishing and Fixing the Rights and Preferences of Preferred Stock (incorporated by reference to Saratoga Investment Corp.’s registration statement on Form N-2 Pre-Effective Amendment No. 1, File No. 333-196526, filed on December 5, 2014).

4.6		Fourth Supplemental Indenture between the Company and U.S. Bank National Association, as trustee, relating to the 7.25% Note due 2025 (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 814-00732) filed on June 24, 2020).

4.7		Form of 7.25% Notes due 2025 (incorporated by reference to Exhibit 4.6 hereto).

4.8		Eighth Supplemental Indenture between the Company and U.S. Bank National Association, as trustee, relating to the 4.375% Note due 2026 (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 814-00732) filed on March 10, 2021).

4.9		Form of 4.375% Notes due 2026 (incorporated by reference to Exhibit 4.8 hereto).

10.1		Investment Advisory and Management Agreement dated July 30, 2010 between GSC Investment Corp. and Saratoga Investment Advisors, LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).

10.2		Custodian Agreement dated March 21, 2007 between GSC Investment LLC and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Form 10-Q for the quarterly period ended May 31, 2007).

10.3		Administration Agreement dated July 30, 2010 between GSC Investment Corp. and Saratoga Investment Advisors, LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).

10.4		Trademark License Agreement dated July 30, 2010 between Saratoga Investment Advisors, LLC and GSC Investment Corp. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 3, 2010).

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10.5		Form of Indemnification Agreement between Saratoga Investment Corp. and each officer and director of Saratoga Investment Corp. (incorporated by reference to Amendment No. 2 to Saratoga Investment Corp.’s Registration Statement on Form N-2 filed on January 12, 2007).

10.6		Amended and Restated Indenture, dated as of November 15, 2016, among Saratoga Investment Corp. CLO 2013-1, Ltd., Saratoga Investment Corp. CLO 2013-1, Inc. and U.S. Bank National Association. (incorporated by reference to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-216344, filed on February 28, 2017).

10.7		Amended and Restated Collateral Management Agreement, dated February 26, 2021, by and between Saratoga Investment Corp. and Saratoga Investment Corp. CLO 2013-1, Ltd. (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on March 4, 2021).

10.8		Amended and Restated Collateral Administration Agreement, dated February 26, 2021, by and between Saratoga Investment Corp., Saratoga Investment Corp. CLO 2013-1, Ltd. and U.S. Bank National Association (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on March 4, 2021).

10.9		Equity Distribution Agreement, dated July 30, 2021, by and among Saratoga Investment Corp. and Saratoga Investment Advisors, LLC, on the one hand, and Ladenburg Thalmann & Co. Inc. and Compass Point Research & Trading, LLC, on the other hand (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on August 2, 2021).

10.10		Credit and Security Agreement, dated as of October 4, 2021, by and among Saratoga Investment Funding II, LLC, Saratoga Investment Corp., as collateral manager and equityholder, the lenders party thereto, Encina Lender Finance, LLC, as administrative agent for the secured parties and the collateral agent, and U.S. Bank National Association, as collateral custodian for the secured parties thereto and as collateral administrator (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 7, 2021).

10.11		Equity Pledge Agreement, dated as of October 4, 2021, by and between Saratoga Investment Corp. and Encina Lender Finance, LLC, as collateral agent for the secured parties thereto (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 7, 2021).

10.12		Loan Sale and Contribution Agreement, dated as of October 4, 2021, by and between Saratoga Investment Corp., as seller, and Saratoga Investment Funding II LLC, as purchaser (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 7, 2021).

10.13		Saratoga Senior Loan Fund I JV LLC Limited Liability Company Agreement, dated October 26, 2021, by and between Saratoga Investment Corp. and TJHA JV I LLC (incorporated by reference to Saratoga Investment Corp.’s Current Report on Form 8-K filed on October 27, 2021).

14		Code of Ethics of the Company adopted under Rule 17j-1 (incorporated by reference to Amendment No.7 to Saratoga Investment Corp.’s Registration Statement on Form N-2, File No. 333-138051, filed on March 22, 2007).

31.1*		Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934

31.2*		Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934

32.1*		Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C.1350)

32.2*		Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

* Filed herewith

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SARATOGA INVESTMENT CORP.

Date: January 5, 2022	By:	/s/ CHRISTIAN L. OBERBECK
		Christian L. Oberbeck
		Chief Executive Officer

	By:	/s/ HENRI J. STEENKAMP
		Henri J. Steenkamp
		Chief Financial Officer and Chief Compliance Officer

109

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULE 13a-14(a) and 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Christian L. Oberbeck, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Saratoga Investment Corp.;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the company’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 5, 2022

	/s/ CHRISTIAN L. OBERBECK
	Christian L. Oberbeck
	Chief Executive Officer

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULE 13a-14(a) and 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Henri J. Steenkamp, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Saratoga Investment Corp.;

(a)

(b)

(c)

(d)

(a)

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 5, 2022

	/s/ HENRI J. STEENKAMP
	Name:	Henri J. Steenkamp
		Chief Financial Officer and Chief Compliance Officer

Exhibit 32.1

CERTIFICATION PURSUANT TO

SECTION 1350, CHAPTER 63 OF TITLE 18, UNITED STATES CODE,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The certification set forth below is being submitted in connection with the accompanying Quarterly Report of Saratoga Investment Corp. on Form 10-Q (the “Report”) for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code.

Christian L. Oberbeck, the Chief Executive Officer, certifies that, to the best of his knowledge:

1.	the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

2.	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Saratoga Investment Corp.

Date: January 5, 2022

	/s/ CHRISTIAN L. OBERBECK
	Christian L. Oberbeck
	Chief Executive Officer

Exhibit 32.2

CERTIFICATION PURSUANT TO

SECTION 1350, CHAPTER 63 OF TITLE 18, UNITED STATES CODE,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Henri J. Steenkamp, the Chief Financial Officer, Chief Compliance Officer and Secretary of Saratoga Investment Corp. certifies that, to the best of his knowledge:

1.	the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

2.	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Saratoga Investment Corp.

Date: January 5, 2022

	/s/ HENRI J. STEENKAMP
	Name:	Henri J. Steenkamp
		Chief Financial Officer and Chief Compliance Officer