10-Q 1 f10q0523_saratogainvest.htm QUARTERLY REPORT

 

 

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 May 31, 2023

 

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Commission File No. 814-00732

 

 

 

SARATOGA INVESTMENT CORP.

(Exact name of registrant as specified in its charter)

 

 

 

Maryland  20-8700615
(State or other jurisdiction of
incorporation or organization)		  (I.R.S. Employer
Identification Number)

 

535 Madison Avenue

New York, New York 10022

(Address of principal executive offices)

 

(212) 906-7800

(Registrant’s telephone number, including area code)

 

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class  Trading Symbol(s)  Name of each exchange on which
registered
Common Stock, par value $0.001 per share  SAR  The New York Stock Exchange
6.00% Notes due 2027  SAT  The New York Stock Exchange
8.00% Notes due 2027  SAJ  The New York Stock Exchange
8.125% Notes due 2027  SAY  The New York Stock Exchange
8.50% Notes due 2027  SAZ  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 July 7, 2023 was 11,979,781.

 

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
PART I. FINANCIAL INFORMATION 1
     
Item 1. Consolidated Financial Statements 1
     
  Consolidated Statements of Assets and Liabilities as of May 31, 2023 (unaudited) and February 28, 2023 1
     
  Consolidated Statements of Operations for the three months ended May 31, 2023 (unaudited) and May 31, 2022 (unaudited) 2
     
  Consolidated Statements of Changes in Net Assets for three months ended May 31, 2023 (unaudited) and May 31, 2022 (unaudited) 3
     
  Consolidated Statements of Cash Flows for the three months ended May 31, 2023 (unaudited) and May 31, 2022 (unaudited) 4
     
  Consolidated Schedules of Investments as of May 31, 2023 (unaudited) and February 28, 2023 5
     
  Notes to Consolidated Financial Statements as of May 31, 2023 (unaudited) 26
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 93
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 135
     
Item 4. Controls and Procedures 136
     
PART II. OTHER INFORMATION 137
     
Item 1. Legal Proceedings 137
     
Item 1A. Risk Factors 137
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 137
     
Item 3. Defaults Upon Senior Securities 137
     
Item 4. Mine Safety Disclosures 137
     
Item 5. Other Information 137
     
Item 6. Exhibits 137
     
Signatures 141

 

i

 

PART I. FINANCIAL INFORMATION

 

Item 1. Consolidated Financial Statements

 

Saratoga Investment Corp.

Consolidated Statements of Assets and Liabilities

 

   May 31,
2023		   February 28,
2023		 
   (unaudited)     
ASSETS        
Investments at fair value        
Non-control/Non-affiliate investments (amortized cost of $934,686,593 and $819,966,208, respectively)  $941,021,051   $828,028,800 
Affiliate investments (amortized cost of $40,471,309 and $25,722,320, respectively)   42,809,576    28,305,871 
Control investments (amortized cost of $119,161,637 and $120,800,829, respectively)   100,267,501    116,255,582 
Total investments at fair value (amortized cost of $1,094,319,539 and $966,489,357, respectively)   1,084,098,128    972,590,253 
Cash and cash equivalents   21,987,196    65,746,494 
Cash and cash equivalents, reserve accounts   31,165,969    30,329,779 
Interest receivable (net of reserve of $3,517,085 and $2,217,300, respectively)   7,831,749    8,159,951 
Management fee receivable   362,026    363,809 
Other assets   667,906    531,337 
Current tax receivable   99,676    436,551 
Total assets  $1,146,212,650   $1,078,158,174 
           
LIABILITIES          
Revolving credit facility  $35,000,000   $32,500,000 
Deferred debt financing costs, revolving credit facility   (1,227,903)   (1,344,005)
SBA debentures payable   202,000,000    202,000,000 
Deferred debt financing costs, SBA debentures payable   (4,675,691)   (4,923,488)
8.75% Notes Payable 2024   20,000,000    - 
Discount on 8.75% notes payable 2024   (613,891)   - 
Deferred debt financing costs, 8.75% notes payable 2024   (26,441)   - 
7.00% Notes Payable 2025   12,000,000    12,000,000 
Discount on 7.00% notes payable 2025   (280,244)   (304,946)
Deferred debt financing costs, 7.00% notes payable 2025   (36,119)   (40,118)
7.75% Notes Payable 2025   5,000,000    5,000,000 
Deferred debt financing costs, 7.75% notes payable 2025   (115,704)   (129,528)
4.375% Notes Payable 2026   175,000,000    175,000,000 
Premium on 4.375% notes payable 2026   775,264    830,824 
Deferred debt financing costs, 4.375% notes payable 2026   (2,340,565)   (2,552,924)
4.35% Notes Payable 2027   75,000,000    75,000,000 
Discount on 4.35% notes payable 2027   (378,163)   (408,932)
Deferred debt financing costs, 4.35% notes payable 2027   (1,291,709)   (1,378,515)
6.25% Notes Payable 2027   15,000,000    15,000,000 
Deferred debt financing costs, 6.25% notes payable 2027   (326,976)   (344,949)
6.00% Notes Payable 2027   105,500,000    105,500,000 
Discount on 6.00% notes payable 2027   (149,633)   (159,334)
Deferred debt financing costs, 6.00% notes payable 2027   (2,750,119)   (2,926,637)
8.00% Notes Payable 2027   46,000,000    46,000,000 
Deferred debt financing costs, 8.00% notes payable 2027   (1,534,920)   (1,622,376)
8.125% Notes Payable 2027   60,375,000    60,375,000 
Deferred debt financing costs, 8.125% notes payable 2027   (1,869,394)   (1,944,536)
8.50% Notes Payable 2028   57,500,000    - 
Deferred debt financing costs, 8.50% notes payable 2028   (1,942,032)   - 
Base management and incentive fees payable   9,624,844    12,114,878 
Deferred tax liability   2,802,635    2,816,572 
Accounts payable and accrued expenses   1,898,623    1,464,343 
Interest and debt fees payable   4,485,867    3,652,936 
Directors fees payable   -    14,932 
Due to manager   359,073    10,935 
Total liabilities   808,761,802    731,200,132 
           
Commitments and contingencies (See Note 9)   
 
    
 
 
           
NET ASSETS          
Common stock, par value $0.001, 100,000,000 common shares authorized, 11,847,742 and 11,890,500 common shares issued and outstanding, respectively   11,848    11,891 
Capital in excess of par value   320,793,316    321,893,806 
Total distributable earnings   16,645,684    25,052,345 
Total net assets   337,450,848    346,958,042 
Total liabilities and net assets  $1,146,212,650   $1,078,158,174 
NET ASSET VALUE PER SHARE  $28.48   $29.18 

 

See accompanying notes to consolidated financial statements.

1

 

 

Saratoga Investment Corp.

Consolidated Statements of Operations

(unaudited)

 

   For the three months ended 
   May 31,
2023		   May 31,
2022		 
INVESTMENT INCOME        
Interest from investments        
Interest income:        
Non-control/Non-affiliate investments  $26,310,793   $13,851,146 
Affiliate investments   727,086    1,050,148 
Control investments   2,045,860    1,546,130 
Payment-in-kind interest income:          
Non-control/Non-affiliate investments   124,895    85,681 
Affiliate investments   207,589    
-
 
Control investments   141,563    73,221 
Total interest from investments   29,557,786    16,606,326 
Interest from cash and cash equivalents   804,289    717 
Management fee income   816,788    815,964 
Dividend Income   1,840,930    300,129 
Structuring and advisory fee income   1,429,222    851,728 
Other income   183,028    104,268 
Total investment income   34,632,043    18,679,132 
           
OPERATING EXPENSES          
Interest and debt financing expenses   11,692,822    6,871,513 
Base management fees   4,564,189    3,802,063 
Incentive management fees expense (benefit)   103,348    (1,903,985)
Professional fees   486,050    417,325 
Administrator expenses   818,750    750,000 
Insurance   81,901    87,310 
Directors fees and expenses   89,068    110,000 
General and administrative   830,728    667,416 
Income tax expense (benefit)   6,237    (98,732)
Total operating expenses   18,673,093    10,702,910 
NET INVESTMENT INCOME   15,958,950    7,976,222 
           
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS          
Net realized gain (loss) from investments:          
Non-control/Non-affiliate investments   90,691    162,509 
Net realized gain (loss) from investments   90,691    162,509 
Income tax (provision) benefit from realized gain on investments   -    69,250 
Net change in unrealized appreciation (depreciation) on investments:          
Non-control/Non-affiliate investments   (1,728,134)   (634,289)
Affiliate investments   (245,284)   567,606 
Control investments   (14,348,889)   (9,266,766)
Net change in unrealized appreciation (depreciation) on investments   (16,322,307)   (9,333,449)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments   59,407    (361,951)
Net realized and unrealized gain (loss) on investments   (16,172,209)   (9,463,641)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $(213,259)  $(1,487,419)
           
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE
  $(0.02)  $(0.12)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED
   11,862,163    12,112,372 

 

See accompanying notes to consolidated financial statements.

 

2

 

 

Saratoga Investment Corp.

Consolidated Statements of Changes in Net Assets

(unaudited)

 

   For the three months ended 
   May 31,
2023		   May 31,
2022		 
DECREASE FROM OPERATIONS:        
Net investment income  $15,958,950   $7,976,222 
Net realized gain from investments   90,691    162,509 
Income tax (provision) benefit from realized gain on investments   
-
    69,250 
Net change in unrealized appreciation (depreciation) on investments   (16,322,307)   (9,333,449)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments   59,407    (361,951)
Net decrease in net assets resulting from operations   (213,259)   (1,487,419)
           
DECREASE FROM SHAREHOLDER DISTRIBUTIONS:          
Total distributions to shareholders   (8,193,402)   (6,428,817)
Net decrease in net assets from shareholder distributions   (8,193,402)   (6,428,817)
           
CAPITAL SHARE TRANSACTIONS:          
Stock dividend distribution   1,058,844    1,108,680 
Repurchases of common stock   (2,157,605)   (3,734,316)
Repurchase fees   (1,772)   (2,840)
Net decrease in net assets from capital share transactions   (1,100,533)   (2,628,476)
Total decrease in net assets   (9,507,194)   (10,544,712)
Net assets at beginning of period   346,958,042    355,780,523 
Net assets at end of period  $337,450,848   $345,235,811 

 

See accompanying notes to consolidated financial statements.

 

3

 

 

Saratoga Investment Corp.

Consolidated Statements of Cash Flows

(unaudited)

 

   For the three months ended 
   May 31,
2023		   May 31,
2022		 
Operating activities        
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS  $(213,259)  $(1,487,419)
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   1,473,779    1,322,915 
Net accretion of discount on investments   (461,543)   (350,408)
Amortization of deferred debt financing costs   1,220,162    798,768 
Income tax expense (benefit)   6,237    (37,823)
Net realized (gain) loss from investments   (90,691)   (162,509)
Net change in unrealized (appreciation) depreciation on investments   16,322,307    9,333,449 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments   (59,407)   361,951 
Proceeds from sales and repayments of investments   11,067,194    10,088,607 
Purchases of investments   (139,818,921)   (97,197,844)
(Increase) decrease in operating assets:          
Interest receivable   328,202    (232,195)
Due from affiliate   -    (14,669)
Management fee receivable   1,783    (228)
Other assets   (136,569)   34,771 
Current income tax receivable   336,875    - 
Increase (decrease) in operating liabilities:          
Base management and incentive fees payable   (2,490,034)   (4,309,544)
Accounts payable and accrued expenses   434,280    221,783 
Current tax payable   -    (129,840)
Interest and debt fees payable   832,931    2,327,626 
Directors fees payable   (14,932)   38,566 
Excise tax payable   -    (630,183)
Due to manager   348,138    (186,057)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES   (110,913,468)   (80,210,283)
           
Financing activities          
Borrowings on debt   32,500,000    44,500,000 
Paydowns on debt   (30,000,000)   - 
Issuance of notes   77,500,000    97,500,000 
Payments of deferred debt financing costs   (2,715,705)   (4,112,912)
Proceeds from issuance of common stock   
-
    - 
Payments of cash dividends   (7,134,558)   (5,320,137)
Repurchases of common stock   (2,157,605)   (3,734,316)
Repurchases fees   (1,772)   (2,840)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES   67,990,360    128,829,795 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS   (42,923,108)   48,619,512 
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, BEGINNING OF PERIOD    96,076,273    52,870,342 
CASH AND CASH EQUIVALENTS AND CASH AND CASH EQUIVALENTS, RESERVE ACCOUNTS, END OF PERIOD SEE NOTE 2  $53,153,165   $101,489,854 
           
Supplemental information:          
Interest paid during the period  $9,639,729   $3,589,281 
Cash paid for taxes   300    374 
Supplemental non-cash information:          
Payment-in-kind interest income and other adjustments to cost   (1,473,779)   (1,322,915)
Net accretion of discount on investments   461,543    350,408 
Amortization of deferred debt financing costs   1,220,162    798,768 
Stock dividend distribution   1,058,844    1,108,680 

 

See accompanying notes to consolidated financial statements.

 

4

 

 

Saratoga Investment Corp.

Consolidated Schedule of Investments

May 31, 2023

(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 - 278.9% (b)                             
Altvia MidCo, LLC.  Alternative Investment Management Software  First Lien Term Loan
(3M USD TERM SOFR+8.50%), 13.79% Cash, 7/18/2027		  7/18/2022  $7,960,000   $7,892,121   $7,906,668    2.3%
Altvia MidCo, LLC. (h)  Alternative Investment Management Software  Series A-1 Preferred Shares  7/18/2022   2,000,000    2,000,000    2,683,000    0.8%
      Total Alternative Investment Management Software           9,892,121    10,589,668    3.1%
GrowthZone, LLC  Association Management Software  First Lien Term Loan
(3M USD TERM SOFR+8.25%), 13.54% Cash, 5/10/2028		  5/10/2023  $17,500,000    17,186,658    17,185,000    5.1%
Golden TopCo LP  Association Management Software  Class A-2 Common Units  5/10/2023   1,000,000    1,000,000    1,000,000    0.3%
      Total Association Management Software           18,186,658    18,185,000    5.4%
BQE Software, Inc.  Architecture & Engineering Software  First Lien Term Loan
(3M USD TERM SOFR+6.75%), 12.04% Cash, 4/13/2028		  4/13/2023  $24,500,000    24,255,000    24,255,000    7.2%
BQE Software, Inc. (j)  Architecture & Engineering Software  Delayed Draw Term Loan
(3M USD TERM SOFR+6.75%), 12.04% Cash, 4/13/2028		  4/13/2023  $-    -    -    0.0%
      Total Architecture & Engineering Software           24,255,000    24,255,000    7.2%
Artemis Wax Corp. (d)(j)  Consumer Services  Delayed Draw Term Loan
(1M USD TERM SOFR+6.75%), 11.92% Cash, 5/20/2026		  5/20/2021  $57,500,000    57,092,886    57,500,000    17.0%
Artemis Wax Corp. (h)  Consumer Services  Series B-1 Preferred Stock  5/20/2021   934,463    1,500,000    4,381,624    1.3%
Artemis Wax Corp. (h)  Consumer Services  Series D Preferred Stock  12/22/2022   278,769    1,500,000    1,576,400    0.5%
      Total Consumer Services           60,092,886    63,458,024    18.8%
Schoox, Inc. (h), (i)  Corporate Education Software  Series 1 Membership Interest  12/8/2020   1,050    475,698    4,015,221    1.2%
      Total Corporate
Education Software		           475,698    4,015,221    1.2%
GreyHeller LLC (h)  Cyber Security  Common Stock  11/10/2021   7,857,689    1,906,275    2,465,500    0.7%
      Total Cyber Security           1,906,275    2,465,500    0.7%

 

5

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original Acquisition Date  Principal/
Number of Shares		   Cost   Fair
Value (c)		   % of
Net Assets		 
New England Dental Partners  Dental Practice Management  First Lien Term Loan
(3M USD LIBOR+8.00%), 13.52% Cash, 11/25/2025		  11/25/2020  $6,555,000    6,520,210    6,514,359    1.9%
New England Dental Partners  Dental Practice Management  Delayed Draw Term Loan
(3M USD LIBOR+8.00%), 13.52% Cash, 11/25/2025		  11/25/2020  $4,650,000    4,631,286    4,621,170    1.4%
Gen4 Dental Partners Holdings, LLC (j)  Dental Practice Management  Delayed Draw Term Loan
(3M USD TERM SOFR+10.20%), 15.64% Cash, 4/29/2026		  2/8/2023  $1,814,352    1,727,539    1,798,567    0.5%
Gen4 Dental Partners Holdings, LLC (i)(h)  Dental Practice Management  Series A Preferred Units  2/8/2023   493,999    1,027,519    1,027,519    0.3%
      Total Dental Practice Management           13,906,554    13,961,615    4.1%
Exigo, LLC (d)  Direct Selling Software  First Lien Term Loan
(1M USD TERM SOFR+5.75%), 11.02% Cash, 3/16/2027		  3/16/2022  $24,541,667    24,375,721    24,171,088    7.2%
Exigo, LLC (j)  Direct Selling Software  Delayed Draw Term Loan
(1M USD TERM SOFR+5.75%), 11.02% Cash, 3/16/2027		  3/16/2022  $-    -    (62,917)   0.0%
Exigo, LLC (j)  Direct Selling Software  Revolving Credit Facility
(1M USD TERM SOFR+5.75%), 11.02% Cash, 3/16/2027		  3/16/2022  $-    -    (15,729)   0.0%
Exigo, LLC (h), (i)  Direct Selling Software  Common Units  3/16/2022   1,041,667    1,041,667    1,143,414    0.3%
      Total Direct Selling Software           25,417,388    25,235,856    7.5%
C2 Educational Systems, Inc. (d)(j)  Education Services  First Lien Term Loan
(3M USD TERM SOFR+8.50%), 13.79% Cash, 5/31/2025		  5/31/2017  $21,500,000    21,469,290    21,497,850    6.4%
C2 Education Systems, Inc. (h)  Education Services  Series A-1 Preferred Stock  5/18/2021   3,127    499,904    616,457    0.2%
Zollege PBC  Education Services  First Lien Term Loan
(3M USD LIBOR+7.00%), 12.52% Cash, 5/11/2026		  5/11/2021  $16,000,000    15,912,289    14,555,000    4.3%
Zollege PBC (j)  Education Services  Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 12.52% Cash, 5/11/2026		  5/11/2021  $500,000    497,061    457,500    0.1%
Zollege PBC (h)  Education Services  Class A Units  5/11/2021   250,000    250,000    86,103    0.0%
      Total Education Services           38,628,544    37,212,910    11.0%
Destiny Solutions Inc. (h), (i)  Education Software  Limited Partner Interests  5/16/2018   3,068    3,969,291    8,769,222    2.6%
GoReact  Education Software  First Lien Term Loan
(3M USD TERM SOFR+7.50%), 13.99% Cash, 1/17/2025		  1/17/2020  $8,026,477    7,980,635    8,008,016    2.4%
GoReact (j)  Education Software  Delayed Draw Term Loan
(3M USD TERM SOFR+7.50%), 13.99% Cash, 1/17/2025		  1/18/2022  $2,505,603    2,505,603    2,499,840    0.7%
Identity Automation Systems (h)  Education Software  Common Stock Class A-2 Units  8/25/2014   232,616    232,616    250,621    0.1%
Identity Automation Systems (h)  Education Software  Common Stock Class A-1 Units  3/6/2020   43,715    171,571    221,750    0.1%
Ready Education  Education Software  First Lien Term Loan
(3M USD TERM SOFR+6.00%), 11.29% Cash, 8/5/2027		  8/5/2022  $27,000,000    26,767,058    26,427,600    7.8%
      Total Education Software           41,626,774    46,177,049    13.7%
TG Pressure Washing Holdings, LLC (h)  Facilities Maintenance  Preferred Equity  8/12/2019   488,148    488,148    298,279    0.1%
      Total Facilities Maintenance           488,148    298,279    0.1%

 

6

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original Acquisition Date  Principal/
Number of Shares		   Cost   Fair
Value (c)		   % of
Net Assets		 
Davisware, LLC  Field Service Management  First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.29% Cash, 7/31/2024		  9/6/2019  $6,000,000    5,978,353    5,953,800    1.8%
Davisware, LLC  Field Service Management  Delayed Draw Term Loan
(3M USD TERM SOFR+7.00%), 12.29% Cash, 7/31/2024		  9/6/2019  $3,977,790    3,956,315    3,947,161    1.2%
      Total Field Service Management           9,934,668    9,900,961    3.0%
B. Riley Financial, Inc. (a)  Financial Services  Senior Unsecured Loan
6.75% Cash, 5/31/2024		  10/18/2022  $165,301    165,301    165,301    0.0%
GDS Software Holdings, LLC  Financial Services  First Lien Term Loan
(3M USD LIBOR+7.00%), 12.52% Cash, 12/30/2026		  12/30/2021  $22,713,926    22,610,530    22,348,232    6.6%
GDS Software Holdings, LLC  Financial Services  Delayed Draw Term Loan
(3M USD LIBOR+7.00%), 12.52% Cash, 12/30/2026		  12/30/2021  $3,286,074    3,258,507    3,233,167    1.0%
GDS Software Holdings, LLC  (h)  Financial Services  Common Stock Class A Units  8/23/2018   250,000    250,000    515,469    0.2%
      Total Financial Services           26,284,338    26,262,169    7.8%
Ascend Software, LLC  Financial Services Software  First Lien Term Loan
(3M USD LIBOR+7.50%), 13.02% Cash, 12/15/2026		  12/15/2021  $6,000,000    5,955,857    5,914,200    1.8%
Ascend Software, LLC (j)  Financial Services Software  Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 13.02% Cash, 12/15/2026		  12/15/2021  $3,300,000    3,269,995    3,207,050    1.0%
      Total Financial Services Software           9,225,852    9,121,250    2.8%
Stretch Zone Franchising, LLC  Health/Fitness Franchisor  First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.29% Cash, 3/31/2028		  3/31/2023  $30,000,000    29,706,945    29,700,000    8.8%
Stretch Zone Franchising, LLC (j)  Health/Fitness Franchisor  Delayed Draw Term Loan
(3M USD TERM SOFR+7.00%), 12.29% Cash, 3/31/2028		  3/31/2023  $-    -    -    0.0%
Stretch Zone Franchising, LLC (h)  Health/Fitness Franchisor  Class A Preferred Units  3/31/2023   20,000    2,000,000    2,000,000    0.6%
      Total Health/Fitness Franchisor           31,706,945    31,700,000    9.4%
Axiom Parent Holdings, LLC (h)  Healthcare Services  Class A Preferred Units  6/19/2018   400,000    400,000    1,068,787    0.3%
ComForCare Health Care (d)  Healthcare Services  First Lien Term Loan
(3M USD LIBOR+6.25%), 11.77% Cash, 1/31/2025		  1/31/2017  $25,000,000    24,943,998    25,000,000    7.4%
      Total Healthcare Services           25,343,998    26,068,787    7.7%
HemaTerra Holding Company, LLC (d)  Healthcare Software  First Lien Term Loan
(1M USD TERM SOFR+8.25%), 13.42% Cash, 1/31/2027		  4/15/2019  $55,344,885    54,988,475    55,306,144    16.4%
HemaTerra Holding Company, LLC  Healthcare Software  Delayed Draw Term Loan
(1M USD TERM SOFR+8.25%), 13.42% Cash, 1/31/2027		  4/15/2019  $13,860,350    13,798,493    13,850,648    4.1%
TRC HemaTerra, LLC (h)  Healthcare Software  Class D Membership Interests  4/15/2019   2,487    2,816,693    4,720,933    1.4%
Procurement Partners, LLC  Healthcare Software  First Lien Term Loan
(3M USD TERM SOFR+6.50%), 11.79% Cash, 5/12/2026		  11/12/2020  $35,125,000    34,928,945    35,114,463    10.4%
Procurement Partners, LLC (j)  Healthcare Software  Delayed Draw Term Loan
(3M USD TERM SOFR+6.50%), 11.79% Cash, 5/12/2026		  11/12/2020  $9,300,000    9,226,665    9,297,210    2.8%
Procurement Partners Holdings LLC (h)  Healthcare Software  Class A Units  11/12/2020   571,219    571,219    814,625    0.2%
      Total Healthcare Software           116,330,490    119,104,023    35.3%
Roscoe Medical, Inc. (h)  Healthcare Supply  Common Stock  3/26/2014   5,081    508,077    -    0.0%
      Total Healthcare Supply           508,077    -    0.0%

 

7

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original Acquisition Date  Principal/
Number of Shares		   Cost   Fair
Value (c)		   % of
Net Assets		 
Book4Time, Inc. (a), (d)  Hospitality/Hotel  First Lien Term Loan
(3M USD LIBOR+7.50%), 13.02%, 12/22/2025		  12/22/2020  $3,136,517    3,119,385    3,136,517    0.9%
Book4Time, Inc. (a)  Hospitality/Hotel  Delayed Draw Term Loan
(3M USD LIBOR+7.50%), 13.02%, 12/22/2025		  12/22/2020  $2,000,000    1,985,626    2,000,000    0.6%
Book4Time, Inc. (a), (h), (i)  Hospitality/Hotel  Class A Preferred Shares  12/22/2020   200,000    156,826    309,559    0.1%
Knowland Group, LLC (h), (k)  Hospitality/Hotel  Second Lien Term Loan
(3M USD TERM SOFR+8.00%), 16.44% Cash/3.00% PIK, 12/31/2024		  11/9/2018  $15,878,989    15,878,989    9,829,094    2.9%
Sceptre Hospitality Resources, LLC  Hospitality/Hotel  First Lien Term Loan
(3M USD TERM SOFR+7.25%), 12.54% Cash, 11/15/2027		  4/27/2020  $23,000,000    22,810,619    22,864,300    6.8%
Sceptre Hospitality Resources, LLC (j)  Hospitality/Hotel  Delayed Draw Term Loan
(3M USD TERM SOFR+7.25%), 12.54% Cash, 11/15/2027		  9/2/2021  $-    -    -    0.0%
      Total Hospitality/Hotel           43,951,445    38,139,470    11.3%
Granite Comfort, LP (d)  HVAC Services and Sales  First Lien Term Loan
(3M USD TERM SOFR+7.82%), 13.11% Cash, 11/16/2025		  11/16/2020  $42,785,000    42,513,752    42,446,999    12.6%
Granite Comfort, LP (j)  HVAC Services and Sales  Delayed Draw Term Loan
(3M USD TERM SOFR+7.82%), 13.11% Cash, 11/16/2025		  11/16/2020  $26,143,125    25,816,243    25,936,594    7.7%
      Total HVAC Services and Sales           68,329,995    68,383,593    20.3%
Vector Controls Holding Co., LLC (d)  Industrial Products  First Lien Term Loan
(3M USD LIBOR+6.50%), 12.02% Cash, 3/6/2025		  3/6/2013  $3,089,986    3,089,986    3,089,987    0.9%
Vector Controls Holding Co., LLC (h)  Industrial Products  Warrants to Purchase Limited Liability Company Interests, Expires 11/30/2027  5/31/2015   343    -    6,234,823    1.8%
      Total Industrial Products           3,089,986    9,324,810    2.7%
AgencyBloc, LLC  Insurance Software  First Lien Term Loan
(1M USD BSBY+8.00%), 13.11% Cash, 10/1/2026		  10/1/2021  $13,435,568    13,346,649    13,428,850    4.0%
Panther ParentCo LLC (h)  Insurance Software  Class A Units  10/1/2021   2,500,000    2,500,000    3,577,353    1.1%
      Total Insurance Software           15,846,649    17,006,203    5.1%
LogicMonitor, Inc. (d)  IT Services  First Lien Term Loan
(3M USD TERM SOFR+6.50%), 11.79% Cash, 5/17/2026		  3/20/2020  $43,000,000    42,967,165    43,000,000    12.7%
        Total IT Services           42,967,165    43,000,000    12.7%
ActiveProspect, Inc. (d)  Lead Management Software  First Lien Term Loan
(3M USD TERM SOFR+6.00%), 11.49% Cash, 8/8/2027		  8/8/2022  $12,000,000    11,910,143    12,120,000    3.6%
ActiveProspect, Inc. (j)  Lead Management Software  Delayed Draw Term Loan
(3M USD TERM SOFR+6.00%), 11.49% Cash, 8/8/2027		  8/8/2022  $-    -    -    0.0%
      Total Lead Management Software           11,910,143    12,120,000    3.6%
Centerbase, LLC  Legal Software  First Lien Term Loan
(1M USD TERM SOFR+7.75%), 12.92% Cash, 1/18/2027		  1/18/2022  $21,193,920    21,017,421    20,700,102    6.1%
      Total Legal Software           21,017,421    20,700,102    6.1%
Madison Logic, Inc. (d)  Marketing Orchestration Software  First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.29% Cash, 12/30/2028		  12/10/2021  $19,000,000    18,633,576    18,715,000    5.5%
      Total Marketing Orchestration Software           18,633,576    18,715,000    5.5%

 

8

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original Acquisition Date  Principal/
Number of Shares		   Cost   Fair
Value (c)		   % of
Net Assets		 
ARC Health OpCo LLC (d)  Mental Healthcare Services  First Lien Term Loan
(3M USD TERM SOFR+8.48%), 13.78% Cash, 8/5/2027		  8/5/2022  $6,500,000    6,430,015    6,440,200    1.9%
ARC Health OpCo LLC (d), (j)  Mental Healthcare Services  Delayed Draw Term Loan
(3M USD TERM SOFR+8.48%), 13.78% Cash, 8/5/2027		  8/5/2022  $13,036,750    12,880,708    12,916,812    3.8%
ARC Health OpCo LLC (h)  Mental Healthcare Services  Class A Preferred Units  8/5/2022   3,818,400    4,169,599    4,047,510    1.2%
      Total Mental Healthcare Services           23,480,322    23,404,522    6.9%
Chronus LLC  Mentoring Software  First Lien Term Loan
(3M USD TERM SOFR+5.25%), 10.69% Cash, 8/26/2026		  8/26/2021  $15,000,000    14,896,420    14,802,000    4.4%
Chronus LLC  Mentoring Software  First Lien Term Loan
(3M USD TERM SOFR+6.00%), 11.44% Cash, 8/26/2026		  8/26/2021  $5,000,000    4,955,341    4,934,000    1.5%
Chronus LLC (h)  Mentoring Software  Series A Preferred Stock  8/26/2021   3,000    3,000,000    3,296,744    1.0%
      Total Mentoring Software           22,851,761    23,032,744    6.9%
Omatic Software, LLC  Non-profit Services  First Lien Term Loan
(3M USD TERM SOFR+8.00%), 14.55% Cash/1.00% PIK, 6/30/2024		  5/29/2018  $14,158,121    14,124,131    14,108,567    4.2%
      Total Non-profit Services           14,124,131    14,108,567    4.2%
Emily Street Enterprises, L.L.C.  Office Supplies  Senior Secured Note
(3M USD TERM SOFR+7.50%), 12.79% Cash, 12/31/2025		  12/28/2012  $6,000,000    5,982,861    5,970,600    1.8%
Emily Street Enterprises, L.L.C. (h)  Office Supplies  Warrant Membership Interests, Expires 12/31/2025  12/28/2012   49,318    400,000    624,828    0.2%
      Total Office Supplies           6,382,861    6,595,428    2.0%
Buildout, Inc. (d)  Real Estate Services  First Lien Term Loan
(3M USD TERM SOFR+7.00%), 12.39% Cash, 7/9/2025		  7/9/2020  $14,000,000    13,931,784    13,778,800    4.1%
Buildout, Inc.  Real Estate Services  Delayed Draw Term Loan
(3M USD TERM SOFR+7.00%), 12.39% Cash, 7/9/2025		  2/12/2021  $38,500,000    38,281,023    37,891,700    11.2%
Buildout, Inc. (h), (i)  Real Estate Services  Limited Partner Interests  7/9/2020   1,250    1,372,557    1,422,696    0.4%
      Total Real Estate Services           53,585,364    53,093,196    15.7%

 

9

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original Acquisition Date  Principal/
Number of Shares		   Cost   Fair
Value (c)		   % of
Net Assets		 
Wellspring Worldwide Inc.  Research Software  First Lien Term Loan
(1M USD BSBY+7.25%), 12.36% Cash, 6/27/2027		  6/27/2022  $9,600,000    9,510,918    9,553,920    2.8%
Archimedes Parent LLC (h)  Research Software  Class A Common Units  6/27/2022   1,125,160    1,125,160    1,128,926    0.3%
      Total Research Software           10,636,078    10,682,846    3.1%
LFR Chicken LLC  Restaurant  First Lien Term Loan
(1M USD TERM SOFR+7.00%), 12.17% Cash, 11/19/2026		  11/19/2021  $12,000,000    11,914,575    11,898,000    3.5%
LFR Chicken LLC (j)  Restaurant  Delayed Draw Term Loan
(1M USD TERM SOFR+7.00%), 12.17% Cash, 11/19/2026		  11/19/2021  $9,000,000    8,932,246    8,923,500    2.6%
LFR Chicken LLC (h)  Restaurant  Series B Preferred Units  11/19/2021   497,183    1,000,000    1,181,928    0.4%
TMAC Acquisition Co., LLC  Restaurant  Unsecured Term Loan
8.00% PIK, 3/1/2024		  3/1/2018  $3,217,657    3,217,657    2,959,889    0.9%
      Total Restaurant           25,064,478    24,963,317    7.4%
JobNimbus LLC  Roofing Contractor Software  First Lien Term Loan
(1M USD TERM SOFR+8.75%), 14.02% Cash, 9/20/2026		  3/28/2023  $10,000,000    9,903,578    9,900,000    2.9%
      Total Roofing Contractor Software           9,903,578    9,900,000    2.9%
Pepper Palace, Inc. (d)  Specialty Food Retailer  First Lien Term Loan
(3M USD LIBOR+6.25%), 11.77% Cash, 6/30/2026		  6/30/2021  $33,405,000    33,180,924    23,416,905    6.9%
Pepper Palace, Inc. (j)  Specialty Food Retailer  Delayed Draw Term Loan
(3M USD LIBOR+6.25%), 11.77% Cash, 6/30/2026		  6/30/2021  $-    -    -    0.0%
Pepper Palace, Inc. (j)  Specialty Food Retailer  Revolving Credit Facility
(3M USD LIBOR+6.25%), 11.77% Cash, 6/30/2026		  6/30/2021  $-    -    -    0.0%
Pepper Palace, Inc. (h)  Specialty Food Retailer  Membership Interest
(Series A)		  6/30/2021   1,000,000    1,000,000    -    0.0%
Pepper Palace, Inc. (h)  Specialty Food Retailer  Membership Interest
(Series B)		  6/30/2021   197,035    197,035    -    0.0%
      Total Specialty Food Retailer           34,377,959    23,416,905    6.9%
ArbiterSports, LLC (d)  Sports Management  First Lien Term Loan
(3M USD TERM SOFR+6.50%), 11.79% Cash, 2/21/2025		  2/21/2020  $26,000,000    25,915,459    25,807,600    7.6%

 

10

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original Acquisition Date  Principal/
Number of Shares		   Cost   Fair
Value (c)		   % of
Net Assets		 
ArbiterSports, LLC  Sports Management  Delayed Draw Term Loan
(3M USD TERM SOFR+6.50%), 11.79% Cash, 2/21/2025		  2/21/2020  $1,000,000    1,000,000    992,600    0.3%
      Total Sports Management           26,915,459    26,800,200    7.9%
Avionte Holdings, LLC (h)  Staffing Services  Class A Units  1/8/2014   100,000    100,000    2,123,136    0.6%
      Total Staffing Services           100,000    2,123,136    0.6%
JDXpert  Talent Acquisition Software  First Lien Term Loan
(3M USD LIBOR+8.50%), 14.02% Cash, 5/2/2027		  5/2/2022  $6,000,000    5,949,642    6,048,600    1.8%
JDXpert (j)  Talent Acquisition Software  Delayed Draw Term Loan
(3M USD LIBOR+8.50%), 14.02% Cash, 5/2/2027		  5/2/2022  $1,000,000    990,270    1,008,100    0.3%
Jobvite, Inc. (d)  Talent Acquisition Software  First Lien Term Loan
(3M USD TERM SOFR+8.00%), 13.29% Cash, 8/5/2028		  8/5/2022  $20,000,000    19,872,841    19,948,000    6.1%
      Total Talent Acquisition Software           26,812,753    27,004,700    8.2%
VetnCare MSO, LLC (j)  Veterinary Services  Delayed Draw Term Loan
(3M USD TERM SOFR+5.75%), 11.04% Cash, 5/12/2028		  5/12/2023  $500,000    495,055    495,000    0.1%
      Total Veterinary Services           495,055    495,000    0.1%
Sub Total Non-control/Non-affiliate investments              934,686,593    941,021,051    278.9%
Affiliate investments - 12.7% (b)                          
ETU Holdings, Inc. (f)  Corporate Education Software  First Lien Term Loan
(3M USD LIBOR+9.00%), 14.52% Cash, 8/18/2027		  8/18/2022  $7,000,000    6,939,743    6,992,300    2.1%
ETU Holdings, Inc. (f)  Corporate Education Software  Second Lien Term Loan
15.00% PIK, 2/18/2028		  8/18/2022  $5,482,861    5,438,840    5,356,206    1.6%
ETU Holdings, Inc. (f), (h)  Corporate Education Software  Series A Preferred Units  8/18/2022   3,000,000    3,000,000    2,904,070    0.9%
      Total Corporate Education Software           15,378,583    15,252,576    4.6%
Modis Dental Partners OpCo, LLC (f)  Dental Practice Management  First Lien Term Loan
(1M USD LIBOR+9.50%), 14.67% Cash, 4/18/2028		  4/18/2023  $7,000,000    6,896,854    6,895,000    2.0%
Modis Dental Partners OpCo, LLC (f), (j)  Dental Practice Management  Delayed Draw Term Loan
(1M USD LIBOR+9.50%), 14.67% Cash, 4/18/2028		  4/18/2023  $-    -    -    0.0%
Modis Dental Partners OpCo, LLC (f)  Dental Practice Management  Class A Preferred Units  4/18/2023   1,950,000    1,950,000    1,950,000    0.6%
      Total Dental Practice Management           8,846,854    8,845,000    2.6%

 

11

 

 

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
(3M USD TERM SOFR+8.00%), 13.44% Cash, 6/30/2026		  6/30/2021  $5,500,000    5,461,912    5,513,750    1.6%
Axero Holdings, LLC (f)  Employee Collaboration Software  Delayed Draw Term Loan
(3M USD TERM SOFR+8.00%), 13.44% Cash, 6/30/2026		  6/30/2021  $1,100,000    1,091,249    1,102,750    0.3%
Axero Holdings, LLC (f), (j)  Employee Collaboration Software  Revolving Credit Facility
(3M USD TERM SOFR+8.00%), 13.44% Cash, 6/30/2026		  2/3/2022  $-    -    -    0.0%
Axero Holdings, LLC (f), (h)  Employee Collaboration Software  Series A Preferred Units  6/30/2021   2,000,000    2,000,000    2,575,000    0.8%
Axero Holdings, LLC (f), (h)  Employee Collaboration Software  Series B Preferred Units  6/30/2021   2,000,000    2,000,000    3,829,000    1.1%
      Total Employee Collaboration Software           10,553,161    13,020,500    3.8%
Alpha Aesthetics Partners OpCo, LLC (d) (f)  Healthcare Services  First Lien Term Loan
(1M USD TERM SOFR+10.00%), 15.17% Cash, 3/20/2028		  3/20/2023  $3,900,000    3,842,711    3,841,500    1.2%
Alpha Aesthetics Partners OpCo, LLC (f), (j)  Healthcare Services  Delayed Draw Term Loan
(1M USD TERM SOFR+10.00%), 15.17% Cash, 3/20/2028		  3/20/2023  $-    -    -    0.0%
Alpha Aesthetics Partners OpCo, LLC (f), (h)  Healthcare Services  Class A Preferred Units  3/20/2023   1,850,000    1,850,000    1,850,000    0.5%
      Total Healthcare Services           5,692,711    5,691,500    1.7%
Sub Total Affiliate investments              40,471,309    42,809,576    12.7%
Control investments - 29.7% (b)                          
Netreo Holdings, LLC (g)  IT Services  First Lien Term Loan
(3M USD LIBOR +6.50%), 14.02% Cash/2.00% PIK
12/31/2025		  7/3/2018  $5,567,388    5,551,736    5,364,735    1.6%
Netreo Holdings, LLC (d), (g)  IT Services  Delayed Draw Term Loan
(3M USD LIBOR +6.50%), 14.02% Cash/2.00% PIK,
12/31/2025		  5/26/2020  $22,224,213    22,137,538    21,415,251    6.3%
Netreo Holdings, LLC (g), (h)  IT Services  Common Stock Class A Unit  7/3/2018   4,600,677    8,344,500    14,214,290    4.2%
      Total IT Services           36,033,774    40,994,276    12.1%

 

12

 

 

Company(1)  Industry  Investment Interest Rate/
Maturity		  Original Acquisition Date  Principal/
Number of Shares		   Cost   Fair
Value (c)		   % of
Net Assets		 
Saratoga Investment Corp. CLO 2013-1, Ltd. (a), (e), (g)  Structured Finance Securities  Other/Structured Finance Securities
0.00%, 4/20/2033		  1/22/2008  $111,000,000    27,157,923    13,716,348    4.1%
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%), 15.52%, 4/20/2033		  8/9/2021  $9,375,000    9,375,000    8,836,222    2.6%
Saratoga Investment Corp. Senior Loan Fund 2022-1, Ltd. Class E Note (a), (g)  Structured Finance Securities  Other/Structured Finance Securities
(3M USD TERM SOFR+8.55%), 13.84%, 10/20/2033		  10/28/2022  $12,250,000    11,392,500    11,353,537    3.4%
      Total Structured Finance Securities           47,925,423    33,906,107    10.1%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (j)  Investment Fund  Unsecured Loan
10.00%, 10/20/2033		  2/17/2022  $17,618,954    17,618,954    17,618,954    5.2%
Saratoga Senior Loan Fund I JV, LLC (a), (g), (h)  Investment Fund  Membership Interest  2/17/2022   17,583,486    17,583,486    7,748,164    2.3%
      Total Investment Fund           35,202,440    25,367,118    7.5%
Sub Total Control investments              119,161,637    100,267,501    29.7%
TOTAL INVESTMENTS - 321.3% (b)             $1,094,319,539   $1,084,098,128    321.3%

 

   Number of Shares   Cost   Fair
Value		   % of
Net Assets		 
Cash and cash equivalents and cash and cash equivalents, reserve
accounts - 15.8% (b)		                    
U.S. Bank Money Market (l)   53,153,165   $53,153,165   $53,153,165    15.8%
Total cash and cash equivalents and cash and cash equivalents, reserve accounts   53,153,165   $53,153,165   $53,153,165    15.8%

 

(1)Securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and are restricted securities.
(a)Represents an investment that is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, as amended (the 1940 Act”). As of May 31, 2023, non-qualifying assets represent 7.2% of the Company’s portfolio at fair value. As a BDC, the Company generally has to invest at least 70% of its total assets in qualifying assets.
(b)Percentages are based on net assets of $337,450,848 as of May 31, 2023.
(c)Because there is no “readily available market quotations” (as defined in the 1940 Act) 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 the Company’s senior secured revolving credit facility (see Note 8 to the consolidated financial statements).
(e)This investment does not have a stated interest rate that is payable thereon. As a result, the 0.00% 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 three months ended May 31, 2023 in which the issuer was an affiliate are as follows:

 

13

 

 

Company  Purchases   Sales   Total Interest from Investments   Management Fee Income   Net Realized
Gain (Loss) from Investments		   Net Change in Unrealized Appreciation (Depreciation) 
Axero Holdings, LLC  $
-
   $
      -
   $222,826   $
             -
   $
             -
   $(33,070)
ETU Holdings, Inc.   
-
    
-
    467,851    
-
    
-
    (209,149)
Modis Dental Partners OpCo, LLC   8,845,000    
-
    124,995    
-
    
-
    (1,854)
Alpha Aesthetics Partners OpCo, LLC   5,691,500    
-
    119,003    
-
    
-
    (1,211)
Total  $14,536,500   $
-
   $934,675   $
-
   $
-
   $(245,284)

 

(g)As defined in the 1940 Act, we “control” this portfolio company because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the year ended May 31, 2023 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  $
           -
   $
        -
   $962,758   $
-
   $
              -
   $(3,319,711)
Saratoga Investment Corp. CLO 2013-1, Ltd.   
-
    
-
    
-
    816,788    
-
    (5,674,249)
Saratoga Investment Corp. Senior Loan Fund 2022-1, Ltd. Class E Note   
-
    
-
    405,005    
-
    
-
    (958)
Saratoga Investment Corp. CLO 2013-1, Ltd. Class F-2-R-3 Note   
-
    
-
    359,610    
-
    
-
    4,816 
Saratoga Senior Loan Fund I JV, LLC   
-
    
-
    460,050    
-
    
-
    
-
 
Saratoga Senior Loan Fund I JV, LLC   
-
    
-
    
-
    
-
    
-
    (5,358,787)
Total  $
-
   $
-
   $2,187,423   $816,788   $
-
   $(14,348,889)

 

(h)Non-income producing at May 31, 2023.
(i)Includes securities issued by an affiliate of the company.
(j)All or a portion of this investment has an unfunded commitment as of May 31, 2023. (See Note 9 to the consolidated financial statements).
(k)As of May 31, 2023, the investment was on non-accrual status. The fair value of these investments was approximately $9.8 million, which represented 0.9% 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 May 31, 2023.

 

BSBY - Bloomberg Short-Term Bank Yield

LIBOR - London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

 

1M USD BSBY - The 1 month USD BSBY rate as of May 31, 2023 was 5.11%.

1M USD LIBOR - The 1 month USD LIBOR rate as of May 31, 2023 was 5.19%.

3M USD LIBOR - The 3 month USD LIBOR rate as of May 31, 2023 was 5.52%.

1M USD TERM SOFR - The 1 month USD TERM SOFR rate as of May 31, 2023 was 5.17%.

3M USD TERM SOFR - The 3 month USD TERM SOFR rate as of May 31, 2023 was 5.29%.

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

 

See accompanying notes to consolidated financial statements

 

14

 

 

Saratoga Investment Corp.

Consolidated Schedule of Investments

February 28, 2023