First Eagle Alternative Capital BDC, Inc. - Quarter Report: 2022 March (Form 10-Q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from to

Commission file number 814-00789

FIRST EAGLE ALTERNATIVE CAPITAL BDC, INC.

(Exact Name of Registrant as Specified in Its Charter)


Delaware		27-0344947
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

500 Boylston St., Suite 1200, Boston, MA		02116
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: 800-450-4424

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

Title of Each Class	Trading Symbols	Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share	FCRD	NASDAQ Global Select Market
5.00% Senior Notes due 2026	FCRX	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, as amended, 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 Securities Exchange Act of 1934). Yes ☐ No ☒

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding at May 9, 2022 was 29,922,028.

FIRST EAGLE ALTERNATIVE CAPITAL BDC, INC.

FORM 10-Q FOR THE QUARTER ENDED March 31, 2022

Table of Contents

	INDEX	PAGE NO.
PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Statements of Assets and Liabilities as of March 31, 2022 (unaudited) and December 31, 2021	4

	Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021 (unaudited)	5

	Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2022 and 2021 (unaudited)	6

	Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021 (unaudited)	7

	Consolidated Schedules of Investments as of March 31, 2022 (unaudited) and December 31, 2021	8

	Notes to Consolidated Financial Statements (unaudited)	28

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	71

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	105

Item 3.	Defaults Upon Senior Securities	105

Item 4.	Mine Safety Disclosures	105

Item 5.	Other Information	105

Item 6.	Exhibits	106

SIGNATURES		107

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This report, and other statements that we may make, may contain forward-looking statements with respect to future financial or business performance, strategies or expectations, anticipated share repurchases or lack thereof, our plans and expectations about future investments, amount and timing of distributions, if any, and the future liquidity of the company. Forward-looking statements are typically identified by words or phrases such as “trend,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “potential,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and we assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously identified elsewhere in this filing, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance:

•

the introduction, withdrawal, success and timing of business initiatives and strategies;

•

changes in political, economic or industry conditions, the interest rate environment, financial and capital markets, and other external factors, including the current novel coronavirus (“COVID-19”) pandemic, related COID-19 variants, inflation and recent supply chain disruptions as well as recent turmoil in Ukraine and Russia, which could result in changes in the value of our assets;

•

the relative and absolute investment performance and operations of our investment adviser;

•

the impact of increased competition;

•

the impact of future acquisitions and divestitures;

•

the resolution of legal proceedings;

•

our business prospects and the prospects of our portfolio companies;

•

the impact, extent and timing of technological changes and the adequacy of intellectual property protection;

•

the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to us or First Eagle Alternative Credit, LLC (the “Advisor”);

•

the ability of the Advisor to identify suitable investments for us and to monitor and administer our investments;

•

our contractual arrangements and relationships with third parties;

•

any future financings by us;

•

the ability of the Advisor to attract and retain highly talented professionals;

•

fluctuations in foreign currency exchange rates;

•

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

•

the impact of pandemics or other serious public health epidemics, such as the COVID-19 pandemic on our operations, our portfolio companies' business, or the global economy;

•

our ability to exit a control investment in a timely manner; and

•

the ability to fund Logan JV’s unfunded commitments to the extent approved by each member of the Logan JV investment committee.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Assets and Liabilities

(in thousands, except per share data)

	March 31, 2022 (unaudited)			December 31, 2021
Assets:
Investments at fair value:
Non-controlled, non-affiliated investments (cost of $312,012 and $297,497, respectively)	$	305,013		$	294,807
Controlled investments (cost of $150,989 and $149,664, respectively)		95,685			97,272
Non-controlled, affiliated investments (cost of $1 and $1, respectively)		—			—
Cash		6,099			16,276
Escrows and other receivables		1,392			1,566
Interest, dividends, and fees receivable		4,150			3,265
Deferred tax assets		2,359			2,261
Deferred financing costs		2,271			1,496
Prepaid expenses and other assets		1,274			769
Due from affiliate		59			49
Total assets	$	418,302		$	417,761
Liabilities:
Loans payable	$	121,500		$	114,100
Notes payable ($111,600 and $111,600 face amounts, respectively, reported net of deferred financing costs of $2,658 and $2,807, respectively)		108,942			108,793
Accrued expenses and other liabilities		1,010			1,033
Deferred tax liability		1,354			1,556
Base management fees payable		629			1,063
Due to affiliate		1,188			116
Accrued interest and fees		274			276
Accrued administrator expenses		155			118
Total liabilities	$	235,052		$	227,055
Commitments and contingencies (Note 8)
Net Assets:
Common stock, par value $.001 per share, 100,000 common shares authorized, 29,964 and 30,076 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively		30			30
Paid-in capital in excess of par		417,721			418,227
Accumulated deficit		(234,501	)		(227,551	)
Total net assets	$	183,250		$	190,706
Total liabilities and net assets	$	418,302		$	417,761
Net asset value per share attributable to First Eagle Alternative Capital BDC, Inc.	$	6.12		$	6.34

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

	For the three months ended March 31,
	2022			2021
Investment Income:
From non-controlled, non-affiliated investments:
Cash interest income	$	5,221		$	5,113
PIK interest income		54			123
Other income		222			155
From non-controlled, affiliated investments:
Other income		8			41
From controlled investments:
Cash interest income		199			188
Dividend income		1,680			1,568
Total investment income		7,384			7,188
Expenses:
Interest and fees on borrowings		2,376			2,366
Base management fees		1,029			879
Administrator expenses		295			221
Other general and administrative expenses		285			299
Amortization of deferred financing costs		286			408
Professional fees		395			416
Directors' fees		169			169
Total expenses		4,835			4,758
Management fee waiver		(400	)		(879	)
Total expenses, net of fee waivers		4,435			3,879
Income tax provision, excise and other taxes		25			26
Net investment income		2,924			3,283
Realized Gain (Loss) and Change in Unrealized (Depreciation) Appreciation on Investments:
Net realized gain (loss) on investments:
Non-controlled, non-affiliated investments		44			(3,144	)
Net realized gain (loss) on investments		44			(3,144	)
Net change in unrealized (depreciation) appreciation on investments:
Non-controlled, non-affiliated investments		(4,308	)		5,594
Controlled investments		(2,911	)		4,087
Net change in unrealized (depreciation) appreciation on investments		(7,219	)		9,681
Net realized and unrealized (loss) gain from investments		(7,175	)		6,537
Benefit of (provision for) taxes on unrealized loss on investments		300			(331	)
Net (decrease) increase in net assets resulting from operations	$	(3,951	)	$	9,489
Net investment income per common share:
Basic and diluted	$	0.10		$	0.11
Net (decrease) increase in net assets resulting from operations per common share:
Basic and diluted	$	(0.13	)	$	0.32
Weighted average shares of common stock outstanding:
Basic and diluted		30,012			30,109

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Changes in Net Assets

(in thousands)

(unaudited)

	For the three months ended March 31,
	2022			2021
(Decrease) increase in net assets from operations:
Net investment income	$	2,924		$	3,283
Net realized gain (loss) on investments		44			(3,144	)
Net change in unrealized (depreciation) appreciation on investments		(7,219	)		9,681
Benefit of (provision for) taxes on unrealized loss on investments		300			(331	)
Net (decrease) increase in net assets resulting from operations		(3,951	)		9,489
Distributions to stockholders:
Distributions to stockholders from net investment income		(2,999	)		(3,011	)
Total distributions to stockholders		(2,999	)		(3,011	)
Capital share transactions:
Repurchase of common stock		(506	)		—
Net decrease in net assets from capital share transactions		(506	)		—
Total (decrease) increase in net assets		(7,456	)		6,478
Net assets at beginning of period		190,706			185,195
Net assets at end of period	$	183,250		$	191,673
Common shares outstanding at end of period		29,964			30,109
Capital share activity:
Shares repurchased		112			—

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	For the three months ended March 31,
	2022			2021
Cash flows from operating activities:
Net (decrease) increase in net assets resulting from operations	$	(3,951	)	$	9,489
Adjustments to reconcile net (decrease) increase in net assets resulting from operations to net cash provided by operating activities:
Net change in unrealized depreciation (appreciation) on investments		7,219			(9,681	)
Net realized gain on investments		(51	)		1,888
Increase in investments due to interest paid-in-kind		(54	)		(132	)
Amortization of deferred financing costs		286			408
Accretion of discounts on investments and other fees		(229	)		(300	)
Changes in operating assets and liabilities:
Purchases of investments		(19,482	)		(25,206	)
Proceeds from sale and paydown of investments		3,978			8,154
Increase in interest, dividends and fees receivable		(885	)		(143	)
Decrease in escrows and other receivables		174			1,151
(Increase) decrease in due from affiliates		(10	)		(2	)
Increase in deferred tax asset		(98	)		(7	)
Increase in prepaid expenses and other assets		(505	)		(57	)
Decrease in accrued expenses and other liabilities		(23	)		14,883
Increase (decrease) in due to affiliate		1,072			(326	)
(Decrease) increase in accrued credit facility fees and interest		(2	)		(75	)
Decrease in deferred tax liability		(202	)		338
(Decrease) increase in base management fees payable, net		(434	)		—
Increase in accrued administrator expenses		37			—
Decrease in accrued incentive fees payable, net		—			(156	)
Net cash provided by operating activities		(13,160	)		226
Cash flows from financing activities:
Repurchase of common stock		(506	)		—
Borrowings under credit facility		19,400			18,000
Repayments under credit facility		(12,000	)		(9,500	)
Distributions paid to stockholders		(2,999	)		(3,011	)
Financing and offering costs paid		(912	)		(133	)
Net cash provided by financing activities		2,983			5,356
Net (decrease) increase in cash		(10,177	)		5,582
Cash, beginning of period		16,276			7,615
Cash, end of period	$	6,099		$	13,197
Supplemental Disclosure of Cash Flow Information:
Cash interest paid	$	2,363		$	2,280
PIK income earned	$	54		$	123

Non-cash Operating Activities:

See Note 5 in the notes to consolidated financial statements for non-cash restructurings.

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2022

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost			Fair Value ⁽⁶⁾
Non-controlled/non-affiliated investments

First lien senior secured debt
—161.83% of net asset value
Canada
—7.71% of net asset value
Hudson's Bay Company ULC ⁽⁷⁾	Retail	8.3% (LIBOR + 7.3%)	9/30/2021	9/29/2026	$	6,928	$	6,802		$	6,791
PDFTron Systems Inc. ⁽⁷⁾	Services: Business	6.5% (LIBOR + 5.5%)	7/15/2021	7/13/2027		1,633		1,603			1,607
PDFTron Systems Inc. ⁽⁷⁾⁽⁸⁾	Services: Business	6.5% (LIBOR + 5.5%)	7/15/2021	7/15/2026		298		293			294
PDFTron Systems Inc. ^(7)(22)	Services: Business	6.5% (LIBOR + 5.5%)	7/15/2021	7/13/2027		522		513			514
PDFTron Systems Inc. ⁽⁷⁾	Services: Business	6.5% (SOFR + 5.5%)	3/24/2022	7/15/2027		5,000		4,900			4,925
				Subtotal Canada	$	14,381	$	14,111		$	14,131
Midwest
—15.99% of net asset value
Advanced Web Technologies	Containers, Packaging, & Glass	6.8% (LIBOR + 5.8%)	12/17/2020	12/17/2026	$	2,027	$	1,994		$	2,026
Advanced Web Technologies⁽⁸⁾	Containers, Packaging, & Glass	6.8% (LIBOR + 5.8%)	12/17/2020	12/17/2026		46		39			45
Advanced Web Technologies ⁽²²⁾	Containers, Packaging, & Glass	6.8% (LIBOR + 5.8%)	12/17/2020	12/17/2026		797		785			796
Doxa Insurance Holdings, LLC	Insurance	7.3% (LIBOR + 6.3%)	12/4/2020	12/4/2026		1,580		1,549			1,580
Doxa Insurance Holdings, LLC ⁽⁸⁾⁽⁹⁾	Insurance	7.3% (LIBOR + 6.3%)	12/4/2020	12/4/2026		—		(7	)		—
Doxa Insurance Holdings, LLC⁽²²⁾	Insurance	7.3% (LIBOR + 6.3%)	12/4/2020	12/4/2026		1,911		1,874			1,911
Doxa Insurance Holdings, LLC⁽²²⁾	Insurance	7.3% (LIBOR + 6.3%)	8/16/2021	12/4/2026		719		680			719
1-800 Hansons, LLC ⁽¹¹⁾	Services: Consumer	10.5% (LIBOR + 9.5%) (9.5% Cash + 1.0% PIK)	10/19/2017	10/19/2022		3,310		3,303			3,243
1-800 Hansons, LLC ⁽⁸⁾	Services: Consumer	9.5% (LIBOR + 8.5%)	10/19/2017	10/19/2022		209		209			205
IRC Opco LLC	Healthcare & Pharmaceuticals	6.5% (LIBOR + 5.5%)	1/4/2019	1/4/2023		5,271		5,261			5,219
IRC Opco LLC ⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	6.5% (LIBOR + 5.5%)	1/4/2019	1/5/2026		—		(2	)		—
IRC Opco LLC	Healthcare & Pharmaceuticals	6.5% (LIBOR + 5.5%)	7/1/2021	1/4/2023		993		983			983
IRC Opco LLC	Healthcare & Pharmaceuticals	6.3% (LIBOR + 5.3%)	10/21/2021	1/4/2026		249		245			246
Matilda Jane Holdings, Inc.	Consumer Goods: Non-Durable	9.5% (LIBOR + 8.5%)	4/28/2017	5/1/2022		11,049		11,044			8,287
Matilda Jane Holdings, Inc. ⁽⁸⁾	Consumer Goods: Non-Durable	9.5% (LIBOR + 8.5%)	10/30/2020	5/1/2022		652		652			489
Tricor Borrower, LLC	Banking	6.3% (LIBOR + 5.3%)	10/22/2021	10/22/2026		3,215		3,170			3,167
Tricor Borrower, LLC⁽⁸⁾⁽⁹⁾	Banking	6.3% (LIBOR + 5.3%)	10/22/2021	10/22/2026		—		(4	)		—
Tricor Borrower, LLC⁽²²⁾	Banking	6.3% (LIBOR + 5.3%)	10/22/2021	10/22/2026		401		386			395
				Subtotal Midwest	$	32,429	$	32,161		$	29,311
Northeast
—44.99% of net asset value
3SI Security Systems	Services: Consumer	6.8% (LIBOR + 5.8%)	12/17/2019	6/16/2023	$	3,905	$	3,891		$	3,825
Alcanza Clinical Research	Healthcare & Pharmaceuticals	6.3% (LIBOR + 5.3%)	12/21/2021	12/15/2027		500		493			493
Alcanza Clinical Research⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	6.3% (LIBOR + 5.3%)	12/21/2021	12/15/2027		—		(2	)		—
Alcanza Clinical Research^(9)(22)	Healthcare & Pharmaceuticals	6.3% (LIBOR + 5.3%)	12/21/2021	12/15/2027		—		(1	)		—

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2022

(dollar amounts in thousands)

Initial

Maturity/

Principal⁽⁵⁾

Acquisition

Dissolution

No. of Shares /

Type of Investment/Portfolio company ^(1)(2)(3)

Industry

Interest Rate⁽⁴⁾

Date

No. of Units

Amortized Cost

Fair Value ⁽⁶⁾

Alcanza Clinical Research

Healthcare & Pharmaceuticals

6.3% (LIBOR + 5.3%)

3/23/2022

12/15/2027

6,625

6,510

6,526

Aurotech, LLC ⁽¹⁹⁾

High Tech Industries

8.0% (LIBOR + 7.0%)

10/30/2020

10/30/2025

2,939

2,880

1,077

Aurotech, LLC ^(8)(9)(19)

High Tech Industries

8.0% (LIBOR + 7.0%)

10/30/2020

10/30/2025

—

)

—

Automated Control Concepts, Inc.

High Tech Industries

6.5% (LIBOR + 5.5%)

10/22/2021

10/22/2026

2,653

2,616

2,614

Automated Control Concepts, Inc.⁽⁸⁾

High Tech Industries

6.5% (LIBOR + 5.5%)

10/22/2021

10/22/2026

167

155

164

Cedar Services Group, LLC

Sovereign & Public Finance

7.0% (LIBOR + 6.0%)

6/9/2021

6/11/2027

2,896

2,858

2,875

Cedar Services Group, LLC ⁽⁸⁾⁽⁹⁾

Sovereign & Public Finance

7.0% (LIBOR + 6.0%)

6/9/2021

6/11/2027

—

(11

)

—

Cedar Services Group, LLC ⁽²²⁾

Sovereign & Public Finance

7.0% (LIBOR + 6.0%)

6/9/2021

6/11/2027

1,274

1,255

1,264

Cedar Services Group, LLC

Sovereign & Public Finance

7.0% (LIBOR + 6.0%)

3/1/2022

6/11/2027

1,000

980

993

Cedar Services Group, LLC ^(9)(22)

Sovereign & Public Finance

7.0% (LIBOR + 6.0%)

3/1/2022

6/11/2027

—

(14

)

—

Certify, Inc.

Services: Business

6.5% (LIBOR + 5.5%)

2/28/2019

2/28/2024

1,544

1,535

1,544

Certify, Inc. ⁽²³⁾

Services: Business

6.5% (LIBOR + 5.5%)

2/28/2019

2/28/2024

211

209

211

Certify, Inc. ⁽⁸⁾

Services: Business

6.5% (LIBOR + 5.5%)

2/28/2019

2/28/2024

ConvenientMD

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

6/9/2021

6/15/2027

5,459

5,385

5,459

ConvenientMD ⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

6/9/2021

6/15/2027

—

)

—

ConvenientMD ^(9)(22)

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

6/9/2021

6/15/2027

—

)

—

Danforth Advisors

Services: Business

6.3% (LIBOR + 5.3%)

12/9/2021

12/9/2027

190

188

Danforth Advisors

Services: Business

6.3% (LIBOR + 5.3%)

12/9/2021

12/9/2027

—

HealthDrive Corporation

Healthcare & Pharmaceuticals

6.5% (LIBOR + 5.5%)

12/21/2018

12/21/2023

9,675

9,641

9,675

HealthDrive Corporation

Healthcare & Pharmaceuticals

6.5% (LIBOR + 5.5%)

8/30/2021

12/21/2023

100

HealthDrive Corporation ⁽⁸⁾

Healthcare & Pharmaceuticals

6.5% (LIBOR + 5.5%)

12/21/2018

12/21/2023

546

540

546

HealthDrive Corporation ⁽²²⁾

Healthcare & Pharmaceuticals

6.5% (LIBOR + 5.5%)

8/30/2021

12/21/2023

Lighthouse Behavioral Health Solutions, LLC ⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

6.8% (LIBOR + 5.8%)

3/28/2022

3/28/2028

—

(17

)

—

Lighthouse Behavioral Health Solutions, LLC ^(9)(22)

Healthcare & Pharmaceuticals

6.8% (LIBOR + 5.8%)

3/28/2022

3/28/2028

—

(34

)

—

Lighthouse Behavioral Health Solutions, LLC

Healthcare & Pharmaceuticals

6.8% (LIBOR + 5.8%)

3/28/2022

3/28/2028

2,290

2,256

Marlin DTC-LS Midco 2, LLC ⁽⁸⁾⁽⁹⁾

Services: Consumer

7.5% (LIBOR + 6.5%)

3/5/2021

7/1/2025

—

)

—

Marlin DTC-LS Midco 2, LLC

Services: Consumer

7.5% (LIBOR + 6.5%)

3/5/2021

7/1/2025

3,049

3,004

3,049

Multi Specialty Healthcare LLC

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.3%)

12/18/2020

12/18/2026

3,742

3,681

3,742

Multi Specialty Healthcare LLC ⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.3%)

12/18/2020

12/18/2026

—

(11

)

—

Multi Specialty Healthcare LLC

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.3%)

9/24/2021

12/18/2026

100

Multi Specialty Healthcare LLC ⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.3%)

9/24/2021

12/18/2026

—

)

—

Newcleus, LLC

Insurance

6.5% (LIBOR + 5.5%)

8/2/2021

8/2/2026

5,047

4,981

4,971

Newcleus, LLC⁽⁸⁾⁽⁹⁾

Insurance

6.5% (LIBOR + 5.5%)

8/2/2021

8/2/2026

—

)

—

Newcleus, LLC⁽²²⁾

Insurance

6.5% (LIBOR + 5.5%)

8/2/2021

8/2/2026

136

126

134

NWN Parent Holdings LLC

Telecommunications

7.5% (LIBOR + 6.5%)

5/26/2021

5/7/2026

3,282

3,255

3,102

NWN Parent Holdings LLC ⁽⁸⁾

Telecommunications

7.5% (LIBOR + 6.5%)

5/26/2021

5/7/2026

145

140

137

Own Yourself, LLC

Retail

7.5% (LIBOR + 6.5%)

11/12/2021

11/12/2025

5,853

5,748

5,743

Quartermaster Newco, LLC

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.0%)

7/31/2020

7/31/2025

3,088

3,068

3,088

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2022

(dollar amounts in thousands)

Initial

Maturity/

Principal⁽⁵⁾

Acquisition

Dissolution

No. of Shares /

Type of Investment/Portfolio company ^(1)(2)(3)

Industry

Interest Rate⁽⁴⁾

Date

No. of Units

Amortized Cost

Fair Value ⁽⁶⁾

Quartermaster Newco, LLC⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.0%)

7/31/2020

7/31/2025

—

)

—

Revlon Consumer Products Corporation ⁽¹⁴⁾

Consumer Goods: Non-Durable

7.5% (LIBOR + 5.8%)

3/8/2021

5/7/2024

2,500

2,486

2,500

smarTours, LLC

Services: Consumer

7.8% (LIBOR + 6.8%)

12/21/2020

12/31/2024

712

smarTours, LLC^(8)(11)

Services: Consumer

8.8% (LIBOR+ 7.8%) (1.0% Cash + 7.8% PIK)

12/21/2020

12/31/2024

2,383

TriStrux, LLC

Telecommunications

6.3% (LIBOR + 5.3%)

12/23/2021

12/15/2026

2,766

2,726

2,724

TriStrux, LLC⁽⁸⁾

Telecommunications

6.3% (LIBOR + 5.3%)

12/23/2021

12/15/2026

503

488

495

TriStrux, LLC^(9)(29)

Telecommunications

6.3% (LIBOR + 5.3%)

12/23/2021

12/15/2026

—

(10

)

—

USALCO, LLC

Chemicals, Plastics, & Rubber

7.0% (LIBOR + 6.0%)

11/5/2021

10/19/2027

2,993

2,965

2,963

Xcel Brands, Inc.

Consumer Goods: Non-Durable

8.5% (LIBOR + 7.5%)

12/30/2021

4/9/2025

6,880

6,835

6,777

Subtotal Northeast

85,189

84,084

82,466

Southeast

—28.06% of net asset value

A&R Logistics Holdings, Inc.

Transportation: Cargo

7.0% (SOFR + 6.0%)

7/29/2021

5/3/2025

2,367

2,328

2,367

A&R Logistics Holdings, Inc.

Transportation: Cargo

7.5% (SOFR + 6.5%)

2/24/2022

5/3/2025

448

439

448

Alpine X

Services: Business

7.0% (LIBOR + 6.0%)

12/27/2021

12/21/2027

1,426

1,398

1,397

Alpine X⁽⁸⁾⁽⁹⁾

Services: Business

7.0% (LIBOR + 6.0%)

12/27/2021

12/21/2027

—

)

—

Alpine X^(9)(29)

Services: Business

7.0% (LIBOR + 6.0%)

12/27/2021

12/21/2027

—

)

—

Apex Services Partners, LLC

Capital Equipment

6.3% (LIBOR + 5.3%)

2/11/2020

7/31/2025

5,273

5,241

5,274

ECL Entertainment ⁽²⁷⁾

Hotel, Gaming, & Leisure

8.3% (LIBOR + 7.5%)

3/31/2021

5/1/2028

2,978

2,951

3,011

GC EOS Buyer, Inc. ⁽²⁷⁾

Automotive

4.6% (LIBOR + 4.5%)

3/31/2021

8/1/2025

3,949

3,926

3,914

Groundworks Operations, LLC

Construction & Building

6.0% (LIBOR + 5.0%)

7/9/2020

1/17/2026

1,922

1,895

1,922

Groundworks Operations, LLC⁽⁸⁾⁽⁹⁾

Construction & Building

6.0% (LIBOR + 5.0%)

7/9/2020

1/17/2026

—

)

—

Groundworks Operations, LLC ⁽²²⁾

Construction & Building

6.0% (LIBOR + 5.0%)

7/9/2020

1/17/2026

847

839

847

Groundworks Operations, LLC⁽²²⁾

Construction & Building

6.0% (LIBOR + 5.0%)

7/9/2020

1/17/2026

1,317

1,302

1,317

Groundworks Operations, LLC

Construction & Building

6.0% (LIBOR + 5.0%)

3/18/2021

1/17/2026

2,494

2,464

2,494

Lighthouse Lab Services

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

10/25/2021

10/25/2027

5,380

5,305

5,299

Lighthouse Lab Services⁽⁸⁾

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

10/25/2021

10/25/2027

614

592

604

Lighthouse Lab Services

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

10/25/2021

10/25/2027

—

Quorum Health Resources

Healthcare & Pharmaceuticals

6.3% (LIBOR + 5.3%)

5/28/2021

5/26/2027

5,353

5,308

5,313

Quorum Health Resources ⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

6.3% (LIBOR + 5.3%)

5/28/2021

5/26/2027

—

)

—

SuperHero Fire Protection, LLC

Services: Business

7.3% (LIBOR + 6.3%)

9/1/2021

9/1/2026

4,283

4,224

4,219

SuperHero Fire Protection, LLC ⁽⁸⁾

Services: Business

7.3% (LIBOR + 6.3%)

9/1/2021

9/1/2026

153

147

150

SuperHero Fire Protection, LLC ⁽²²⁾

Services: Business

7.3% (LIBOR + 6.3%)

9/1/2021

9/1/2026

691

673

681

Technology Partners, LLC

High Tech Industries

6.5% (LIBOR + 5.5%)

11/16/2021

11/16/2027

4,656

4,569

4,563

Technology Partners, LLC⁽⁸⁾⁽⁹⁾

High Tech Industries

6.5% (LIBOR + 5.5%)

11/16/2021

11/16/2027

—

(14

)

—

Technology Partners, LLC^(9)(22)

High Tech Industries

6.5% (LIBOR + 5.5%)

11/16/2021

11/16/2027

—

)

—

The Mulch & Soil Company, LLC

Environmental Industries

6.8% (LIBOR + 5.8%)

4/30/2021

4/30/2026

3,474

3,412

3,439

The Mulch & Soil Company, LLC ⁽⁸⁾

Environmental Industries

6.8% (LIBOR + 5.8%)

4/30/2021

4/30/2026

461

445

456

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2022

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost			Fair Value ⁽⁶⁾
TTF Holdings, LLC (Soliant)	Healthcare & Pharmaceuticals	5.0% (LIBOR + 4.3%)	3/31/2021	3/25/2028		3,720		3,695			3,711
				Subtotal Southeast	$	51,806	$	51,111		$	51,426
Southwest
—16.34% of net asset value
Allied Wireline Services, LLC ^(11)(24)	Energy: Oil & Gas	10.0% PIK	6/15/2020	6/15/2025	$	5,446	$	4,971		$	3,524
BCDI Rodeo Dental Buyer, LLC	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	5/14/2019	5/14/2025		5,773		5,741			5,715
BCDI Rodeo Dental Buyer, LLC ⁽⁸⁾	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	5/14/2019	5/14/2025		565		557			560
BCDI Rodeo Dental Buyer, LLC ⁽⁸⁾	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	5/14/2019	5/14/2025		1,291		1,283			1,278
BCDI Rodeo Dental Buyer, LLC ^(9)(29)	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	11/22/2021	11/22/2027		—		(1	)		—
Camin Cargo Control, Inc.	Services: Business	7.5% (LIBOR + 6.5%)	6/10/2021	6/4/2026		3,595		3,565			3,559
Endo1 Partners⁽³⁰⁾	Healthcare & Pharmaceuticals	6.0% (SOFR + 5.0%)	12/17/2021	3/24/2026		695		676			681
Owl Landfill Services, LLC	Environmental Industries	6.8% (LIBOR + 5.8%)	6/30/2021	6/30/2026		3,503		3,456			3,468
Riveron Acquisition Holdings, Inc.	Finance	6.8% (LIBOR + 5.8%)	5/22/2019	5/22/2025		8,077		7,992			8,077
TMA Buyer, LLC	High Tech Industries	6.8% (LIBOR + 5.8%)	9/30/2021	9/30/2027		3,129		3,086			3,082
TMA Buyer, LLC⁽⁸⁾⁽⁹⁾	High Tech Industries	6.8% (LIBOR + 5.8%)	9/30/2021	9/30/2027		—		(5	)		—
TMA Buyer, LLC^(9)(22)	High Tech Industries	6.8% (LIBOR + 5.8%)	9/30/2021	9/30/2027		—		(7	)		—
				Subtotal Southwest	$	32,074	$	31,314		$	29,944
West
—48.74% of net asset value
A&A Global Imports, LLC	Containers, Packaging, & Glass	7.0% (LIBOR + 6.0%)	6/1/2021	6/1/2026	$	2,237	$	2,196		$	2,226
A&A Global Imports, LLC ⁽⁸⁾	Containers, Packaging, & Glass	7.0% (LIBOR + 6.0%)	6/1/2021	6/1/2026		387		374			385
Action Point, Inc ⁽⁸⁾	Chemicals, Plastics, & Rubber	7.5% (LIBOR + 6.5%)	12/17/2020	6/17/2026		167		157			167
Action Point, Inc	Chemicals, Plastics, & Rubber	7.5% (LIBOR + 6.5%)	5/5/2021	11/5/2026		514		504			514
Action Point, Inc	Chemicals, Plastics, & Rubber	7.5% (LIBOR + 6.5%)	12/17/2020	6/17/2026		3,292		3,238			3,292
Action Point, Inc	Chemicals, Plastics, & Rubber	7.5% (LIBOR + 6.5%)	11/30/2021	11/30/2026		249		245			249
Alpine SG, LLC	High Tech Industries	6.5% (LIBOR + 5.5%)	11/5/2021	11/5/2027		5,607		5,519			5,523
Alpine SG, LLC⁽⁸⁾⁽⁹⁾	High Tech Industries	6.5% (LIBOR + 5.5%)	11/5/2021	11/5/2027		—		(1	)		—
CC Amulet Management, LLC	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	8/31/2021	8/31/2027		5,116		5,047			5,039
CC Amulet Management, LLC⁽⁸⁾	Healthcare & Pharmaceuticals	7.3% (Prime + 4.0%)	8/31/2021	8/31/2027		409		399			403
CC Amulet Management, LLC^(9)(22)	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	8/31/2021	8/31/2027		—		(4	)		—
DTI Holdco, Inc. ⁽²⁷⁾	Services: Business	5.8% (LIBOR + 4.8%)	3/31/2021	9/29/2023		3,908		3,836			3,825
EBS Intermediate LLC	Services: Consumer	6.0% (LIBOR + 5.0%)	10/2/2018	10/2/2023		7,671		7,629			7,671
EBS Intermediate LLC ⁽⁸⁾⁽⁹⁾	Services: Consumer	6.0% (LIBOR + 5.0%)	10/2/2018	10/2/2023		—		(9	)		—
EBS Intermediate LLC	Services: Consumer	6.0% (LIBOR + 5.0%)	5/5/2021	10/2/2023		247		243			247
Evergreen Services Group, LLC	High Tech Industries	7.0% (LIBOR + 6.0%)	11/13/2018	6/6/2024		9,221		9,196			9,221
Gener8, LLC	Services: Business	6.5% (LIBOR + 5.5%)	8/14/2018	8/8/2023		5,782		5,758			5,782
Gener8, LLC ⁽⁸⁾	Services: Business	6.5% (LIBOR + 5.5%)	8/14/2018	8/8/2023		600		594			600
Gener8, LLC	Services: Business	6.5% (LIBOR + 5.5%)	11/30/2021	8/8/2023		249		245			249
iLending LLC	Banking	7.5% (LIBOR + 6.5%)	6/21/2021	6/21/2026		4,402		4,345			4,402
iLending LLC ⁽⁸⁾⁽⁹⁾	Banking	7.5% (LIBOR + 6.5%)	6/21/2021	6/21/2026		—		(9	)		—

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2022

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost			Fair Value ⁽⁶⁾
Ingenio, LLC	Media: Broadcasting & Subscription	8.0% (LIBOR + 7.0%)	8/3/2021	8/3/2026		5,152		5,085			5,075
Integrated Pain Management Medical Group, Inc.	Healthcare & Pharmaceuticals	7.5% (LIBOR + 6.5%)	6/7/2021	6/17/2026		3,183		3,130			3,184
Integrated Pain Management Medical Group, Inc.^(9)(22)	Healthcare & Pharmaceuticals	7.5% (LIBOR + 6.5%)	6/7/2021	6/17/2026		—		(6	)		—
Integrated Pain Management Medical Group, Inc.⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	7.5% (LIBOR + 6.5%)	6/7/2021	6/17/2026		—		(7	)		—
Lash Opco LLC	Consumer Goods: Non-Durable	9.3% (Prime + 6.0%)	9/18/2020	3/18/2026		2,984		2,930			2,984
Lash Opco LLC ⁽⁸⁾⁽⁹⁾	Consumer Goods: Non-Durable	8.0% (LIBOR + 7.0%)	8/18/2021	8/18/2026		—		(7	)		—
Lash Opco LLC	Consumer Goods: Non-Durable	8.0% (LIBOR + 7.0%)	8/18/2021	1/18/2027		3,042		2,979			3,042
Lash Opco LLC	Consumer Goods: Non-Durable	9.3% (Prime + 6.0%)	12/31/2020	3/18/2026		988		967			987
MarkLogic Corporation	High Tech Industries	7.0% (LIBOR + 6.0%)	10/20/2020	10/20/2025		3,111		3,061			3,111
MarkLogic Corporation⁽⁸⁾⁽⁹⁾	High Tech Industries	7.0% (LIBOR + 6.0%)	10/20/2020	10/20/2025		—		(4	)		—
MarkLogic Corporation	High Tech Industries	7.0% (LIBOR + 6.0%)	11/23/2021	10/20/2025		845		829			845
MarkLogic Corporation⁽⁸⁾⁽⁹⁾	High Tech Industries	7.0% (LIBOR + 6.0%)	11/23/2021	10/20/2025		—		(5	)		—
MeriCal, LLC	Consumer Goods: Non-Durable	7.3% (SOFR + 6.3%)	11/16/2018	11/16/2023		7,324		7,324			7,214
Sequoia Consulting Group, LLC	Healthcare & Pharmaceuticals	6.8% (LIBOR + 5.8%)	12/17/2021	11/23/2026		196		193			193
Sequoia Consulting Group, LLC⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	6.8% (LIBOR + 5.8%)	12/17/2021	11/23/2026		—		(1	)		—
Socius Insurance Services, Inc.	Banking	6.3% (LIBOR + 5.3%)	6/30/2021	6/30/2027		2,925		2,873			2,911
Socius Insurance Services, Inc. ⁽⁸⁾⁽⁹⁾	Banking	6.3% (LIBOR + 5.3%)	6/30/2021	6/30/2027		—		(9	)		—
Socius Insurance Services, Inc. ^(9)(22)	Banking	6.3% (LIBOR + 5.3%)	6/30/2021	6/30/2027		—		(16	)		—
SolutionReach, Inc.	Services: Consumer	6.8% (LIBOR + 5.8%)	1/17/2019	1/17/2024		5,913		5,870			5,795
SolutionReach, Inc.⁽⁸⁾⁽⁹⁾	Services: Consumer	6.8% (LIBOR + 5.8%)	1/17/2019	1/17/2024		—		(7	)		—
SRS Acquiom Holdings LLC	Finance	7.0% (LIBOR + 6.0%)	11/8/2018	11/8/2024		4,200		4,181			4,200
				Subtotal West	$	89,921	$	88,862		$	89,336

		Subtotal first lien senior secured debt			$	305,800	$	301,643		$	296,614

Second lien debt
—1.79% of net asset value
Northeast
—1.79% of net asset value
Merchants Capital Access, LLC ⁽¹⁴⁾	Banking	11.5% (LIBOR + 10.5%)	4/20/2015	4/30/2022	$	2,750	$	2,750		$	2,750
smarTours, LLC^(11)(19)	Services: Consumer	8.8% PIK (LIBOR + 7.8%)	12/21/2020	12/31/2024		1,418		635			525
				Subtotal Northeast	$	4,168	$	3,385		$	3,275

			Subtotal second lien debt		$	4,168	$	3,385		$	3,275
Equity investments
—1.17% of net asset value
Midwest

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2022

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾
—0.10% of net asset value
Doxa Insurance Holdings, LLC ^(10)(13)(18)	Insurance		12/4/2020			174,984	$	173	$	175
Matilda Jane Holdings, Inc. ^(12)(17)	Consumer Goods: Non-Durable		4/28/2017			2,587,855		489		—
			Subtotal Midwest				$	662	$	175
Northeast
—0.91% of net asset value
Certify, Inc.⁽¹⁸⁾	Services: Business		2/28/2019			841	$	175	$	248
Specialty Brands Holdings, LLC ^(10)(17)	Services: Business		6/29/2018			58		—		—
Specialty Brands Holdings, LLC^(10)(18)	Services: Business		6/29/2018			1,232		—		—
SPST Holdings, LLC ^(10)(13)(18)	Services: Consumer		12/21/2020			820,040		216		—
SPST Holdings, LLC ^(10)(13)(17)	Services: Consumer		12/21/2020			3,237		—		—
SPST Investors II, LLC ^{(10)(13)(18)(25)}	Services: Consumer		12/21/2020			51,095		51		—
Wheels Up Experience Inc. ^{(13)(14)(18)(28)}	Transportation: Consumer		1/31/2014			460,392		1,000		1,432
			Subtotal Northeast				$	1,442	$	1,680
Southeast
—0% of net asset value
Virtus Aggregator, LLC ^{(10)(13)(14)(18)}	Healthcare & Pharmaceuticals		5/7/2020			10	$	32	$	—
			Subtotal Southeast				$	32	$	—
Southwest
—0.00% of net asset value
Allied Wireline Services, LLC ^(10)(13)(18)	Energy: Oil & Gas		6/15/2020			4,538		144		—
Allied Wireline Services, LLC ^(10)(13)(18)	Energy: Oil & Gas		6/15/2020			2,063		—		—
			Subtotal Southwest				$	144	$	—
West
—0.16% of net asset value
MeriCal, LLC ^{(10) (12) (17)}	Consumer Goods: Non-Durable		9/30/2016			521	$	505	$	296
MeriCal, LLC ^{(10) (12) (18)}	Consumer Goods: Non-Durable		9/30/2016			5,334		10		—
			Subtotal West				$	515	$	296

				Subtotal equity			$	2,795	$	2,151
Investments in funds
—1.62% of net asset value
Midwest
—1.29% of net asset value
Freeport Financial SBIC Fund LP ^(14)(18)(21)	Investment Funds And Vehicles		6/14/2013				$	2,217	$	2,360
				Subtotal Midwest			$	2,217	$	2,360
Southwest
—0.21% of net asset value
ACON Igloo Investors I, LLC ^(10)(18)(21)	Investment Funds And Vehicles		4/30/2014				$	1,673	$	385
				Subtotal Southwest			$	1,673	$	385

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2022

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾
West
—0.12% of net asset value
Gryphon Partners 3.5, L.P. ^(14)(18)(21)	Investment Funds And Vehicles		11/20/2012				$	299	$	228
				Subtotal West			$	299	$	228

			Subtotal investments in funds				$	4,189	$	2,973

Total non-controlled/non-affiliated investments
—166.42% of net asset value							$	312,012	$	305,013

Controlled investments
—52.21% of net asset value

First lien senior secured debt
—8.72% of net asset value
Southeast
—3.60% of net asset value
Loadmaster Derrick & Equipment, Inc.^{(11)(15)(19)(26)}	Energy: Oil & Gas	11.3% (LIBOR + 10.3% PIK)	7/1/2016	12/31/2022	$	12,608	$	7,307	$	—
Loadmaster Derrick & Equipment, Inc.^{(11)(15)(19)(26)}	Energy: Oil & Gas	13.0% (LIBOR + 12.0% PIK)	7/1/2016	12/31/2022		3,034		1,053		—
Loadmaster Derrick & Equipment, Inc.^{(11)(15)(19)(26)}	Energy: Oil & Gas	11.3% (LIBOR+ 10.3% PIK)	1/17/2017	12/31/2022		11,991		9,150		6,595
				Subtotal Southeast	$	27,633	$	17,510	$	6,595
Southwest
—5.12% of net asset value
OEM Group, LLC ⁽¹⁵⁾	Capital Equipment	8.5% (LIBOR + 7.5%)	9/30/2020	9/30/2025	$	9,385	$	9,385	$	9,385
				Subtotal Southwest	$	9,385	$	9,385	$	9,385

			Subtotal first lien senior secured debt		$	37,018	$	26,895	$	15,980

Second lien debt
—4.45% of net asset value
Southwest
—4.45% of net asset value
OEM Group, LLC ^(11)(15)(24)	Capital Equipment	10.0% PIK	9/30/2020	9/30/2025	$	49,884	$	22,203	$	8,151
				Subtotal Southwest	$	49,884	$	22,203	$	8,151

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2022

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾
			Subtotal second lien debt		$	49,884	$	22,203	$	8,151

Equity investments
—0.00% of net asset value
Southeast
—0.00% of net asset value
Loadmaster Derrick & Equipment, Inc. ^(15)(17)	Energy: Oil & Gas		7/1/2016			2,956	$	1,114	$	—
Loadmaster Derrick & Equipment, Inc. ^(15)(18)	Energy: Oil & Gas		12/21/2016			12,131		—		—
				Subtotal Southeast			$	1,114	$	—
Southwest
—0.00% of net asset value
OEM Group, LLC^{(10)(12)(13)(15)(18)(20)}	Capital Equipment		3/16/2016			20,000	$	8,890	$	—
				Subtotal Southwest			$	8,890	$	—

				Subtotal equity			$	10,004	$	—

Investments in funds
—39.04% of net asset value
Northeast
—39.04% of net asset value
First Eagle Logan JV, LLC ^{(10)(14)(15)(16)(18)(21)}	Investment Funds And Vehicles		12/3/2014				$	91,887	$	71,554
				Subtotal Northeast			$	91,887	$	71,554

			Subtotal investments in funds				$	91,887	$	71,554
Total controlled investments
—52.21% of net asset value							$	150,989	$	95,685

Non-controlled/affiliated investments
—0.00% of net asset value
Investments in funds
—0.00% of net asset value
Northeast
—0.00% of net asset value
First Eagle Greenway Fund II, LLC ^{(10)(14)(15)(18)(21)}	Investment Funds And Vehicles		3/1/2013				$	1	$	—
				Subtotal Northeast			$	1	$	—

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2022

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units	Amortized Cost		Fair Value ⁽⁶⁾
			Subtotal investments in funds			$	1	$	—

Total non-controlled/affiliated investments

—0.00% of net asset value						$	1	$	—

Total investments—218.62% of net asset value						$	463,002	$	400,698

⁽¹⁾

All debt investments are income-producing, unless otherwise noted. Equity and member interests are non-income-producing unless otherwise noted. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended, or the Securities Act. Its investments are therefore generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act.

⁽²⁾	All investments are pledged as collateral under the Revolving Facility.

⁽³⁾

As of March 31, 2022, 24.8% and 23.7% of the Company’s total investments on a cost and fair value basis, respectively, are in non-qualifying assets. The Company may not acquire any non-qualifying assets unless, at the time of the acquisition, qualifying assets represent at least 70% of the Company’s total assets.

⁽⁴⁾

Variable interest rate investments bear interest in reference to London Interbank offer rate, or LIBOR, Alternate Base Rate, or ABR, or Secured Overnight Financing Rate, or SOFR, which are effective as of March 31, 2022. LIBOR loans are typically indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option, ABR rates are typically indexed to the current prime rate or federal funds rate, and SOFR rates are typically indexed to 30-day or 90-day SOFR rates. Each of the LIBOR, ABR, or SOFR rates may be subject to interest floors. As of March 31, 2022, the 30-day, 90-day and 180-day LIBOR rates were 0.45%, 0.96% and 1.47%, respectively, the ABR rate was 3.50%, and the 30-day and 90-day SOFR rates were 0.30% and 0.68%, respectively.

⁽⁵⁾	Principal includes accumulated PIK interest and is net of repayments.

⁽⁶⁾	Unless otherwise indicated, all investments are valued using significant unobservable inputs. Refer to Level 3 fair value measurements quantitative information table in Note 3 of the Consolidated Financial Statements for further detail.

⁽⁷⁾	Foreign company or foreign co-borrower at the time of investment and, as a result, is not a qualifying asset under Section 55(a) of the 1940 Act.

⁽⁸⁾	Company pays 0.50% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁹⁾	The negative cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.

⁽¹⁰⁾	Member interests of limited liability companies are the equity equivalents of the stock of corporations.

⁽¹¹⁾	In certain instances, at the option of the issuer, interest can be paid in cash or cash and PIK. The percentage of PIK shown is the maximum PIK that can be elected by the company. As of March 31, 2022, there were no issuers with this option.

⁽¹²⁾	Equity ownership may be held in shares or units of companies related to the portfolio company.

⁽¹³⁾	Interest held by a wholly owned subsidiary of First Eagle Alternative Capital BDC, Inc.

⁽¹⁴⁾	Investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. The status of these assets under the 1940 Act is subject to change. The Company monitors the status of these assets on an ongoing basis.

⁽¹⁵⁾

As defined in Section 2(a)(9) of the 1940 Act, the Company is deemed to control this portfolio company because it owns more than 25% of the portfolio company’s outstanding voting securities. See Schedule 12-14 in the accompanying notes to the consolidated financial statements for transactions for the three months ended March 31, 2022 in which the issuer was a portfolio company that the Company is deemed to control.

⁽¹⁶⁾

On December 3, 2014, the Company entered into an agreement with Perspecta (as described in Note 3 hereto) to create First Eagle Logan JV, LLC (formerly known as THL Credit Logan JV LLC), or Logan JV, a joint venture, which invests primarily in senior secured first lien term loans. All Logan JV investment decisions must be unanimously

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2022

(dollar amounts in thousands)

approved by the Logan JV investment committee consisting of one representative from each of the Company and Perspecta. Although the Company owns more than 25% of the voting securities of Logan JV, the Company does not believe that it has control over Logan JV (other than for purposes of the 1940 Act or otherwise).

⁽¹⁷⁾	Preferred stock.

⁽¹⁸⁾	Common stock and member interest.

⁽¹⁹⁾	Loan was on non-accrual as of March 31, 2022.

⁽²⁰⁾	Includes $577 of cost and $0 of fair value related to a non-controlling interest as a result of consolidating a blocker corporation that holds equity in OEM Group, LLC as of March 31, 2022.

⁽²¹⁾	Investment is measured at fair value using net asset value.

⁽²²⁾	Company pays 1.00% unfunded commitment fee on delayed draw term loan facility.

⁽²³⁾	Company pays 0.25% unfunded commitment fee on revolving loan facility.

⁽²⁴⁾	Restructured loan for which income is not being recognized as of March 31, 2022.

⁽²⁵⁾	The underlying investment of SPST Investors II, LLC is SPST Holdings, LLC which the Company holds 0.40% ownership interest in SPST Holdings, LLC’s common shares, and 0.44% ownership interest in SPST Holdings, LLC’s preferred shares.

⁽²⁶⁾	On January 1, 2021, the loan was placed in forbearance, with a forbearance termination date subsequently amended to December 31, 2022.

⁽²⁷⁾	Investments are valued using market quotations. Refer to the Level 2 fair value measurements quantitative information table in Note 3 of the Consolidated Financial Statements for further detail.

⁽²⁸⁾	Investment is valued using public stock price. Refer to the Level 1 fair value measurements quantitative information table in Note 3 of the Consolidated Financial Statements for further detail.

⁽²⁹⁾	Company receives 0.75% unfunded commitment fee on delayed draw term loan facility.

⁽³⁰⁾	Company receives 5.00% unfunded commitment fee on delayed draw term loan facility.

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2021

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost			Fair Value ⁽⁶⁾
Non-controlled/non-affiliated investments

First lien senior secured debt
—148.57% of net asset value
Canada
—4.61% of net asset value
Hudson's Bay Company ULC ⁽⁷⁾	Retail	8.3% (LIBOR + 7.3%)	9/30/2021	9/29/2026	$	7,000	$	6,869		$	6,862
PDFTron Systems Inc. ⁽⁷⁾	Services: Business	6.5% (LIBOR + 5.5%)	7/15/2021	7/13/2027		1,637		1,606			1,604
PDFTron Systems Inc. ^(7)(8)(9)	Services: Business	6.5% (LIBOR + 5.5%)	7/15/2021	7/15/2026		—		(5	)		—
PDFTron Systems Inc. ^(7)(22)	Services: Business	6.5% (LIBOR + 5.5%)	7/15/2021	7/13/2027		328		322			322
				Subtotal Canada	$	8,965	$	8,792		$	8,788
Midwest
—16.12% of net asset value
Advanced Web Technologies	Containers, Packaging, & Glass	6.8% (LIBOR + 5.8%)	12/17/2020	12/17/2026	$	2,032	$	1,999		$	2,032
Advanced Web Technologies⁽⁸⁾	Containers, Packaging, & Glass	6.8% (LIBOR + 5.8%)	12/17/2020	12/17/2026		27		22			27
Advanced Web Technologies ⁽²²⁾	Containers, Packaging, & Glass	6.8% (LIBOR + 5.8%)	12/17/2020	12/17/2026		433		420			433
Doxa Insurance Holdings, LLC	Insurance	7.3% (LIBOR + 6.3%)	12/4/2020	12/4/2026		1,584		1,552			1,584
Doxa Insurance Holdings, LLC ⁽⁸⁾⁽⁹⁾	Insurance	7.3% (LIBOR + 6.3%)	12/4/2020	12/4/2026		—		(7	)		—
Doxa Insurance Holdings, LLC⁽²²⁾	Insurance	7.3% (LIBOR + 6.3%)	12/4/2020	12/4/2026		1,916		1,876			1,916
Doxa Insurance Holdings, LLC⁽²²⁾	Insurance	7.3% (LIBOR + 6.3%)	8/16/2021	12/4/2026		721		680			721
1-800 Hansons, LLC ⁽¹¹⁾	Services: Consumer	10.5% (LIBOR + 9.5%) (9.5% Cash + 1.0% PIK)	10/19/2017	10/19/2022		3,311		3,301			3,145
1-800 Hansons, LLC ⁽⁸⁾	Services: Consumer	9.5% (LIBOR + 8.5%)	10/19/2017	10/19/2022		209		208			199
IRC Opco LLC	Healthcare & Pharmaceuticals	6.5% (LIBOR + 5.5%)	1/4/2019	1/4/2023		5,288		5,274			5,235
IRC Opco LLC ⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	6.5% (LIBOR + 5.5%)	1/4/2019	1/5/2026		—		(2	)		—
IRC Opco LLC	Healthcare & Pharmaceuticals	6.5% (LIBOR + 5.5%)	7/1/2021	1/4/2023		995		982			985
IRC Opco LLC	Healthcare & Pharmaceuticals	6.3% (LIBOR + 5.3%)	10/21/2021	1/4/2026		249		246			247
Matilda Jane Holdings, Inc.	Consumer Goods: Non-Durable	9.5% (LIBOR + 8.5%)	4/28/2017	5/1/2022		11,251		11,231			10,351
Matilda Jane Holdings, Inc. ⁽⁸⁾	Consumer Goods: Non-Durable	9.5% (LIBOR + 8.5%)	10/30/2020	5/1/2022		326		326			300
Tricor Borrower, LLC	Banking	6.3% (LIBOR + 5.3%)	10/22/2021	10/22/2026		3,223		3,176			3,175
Tricor Borrower, LLC⁽⁸⁾⁽⁹⁾	Banking	6.3% (LIBOR + 5.3%)	10/22/2021	10/22/2026		—		(4	)		—
Tricor Borrower, LLC⁽²²⁾	Banking	6.3% (LIBOR + 5.3%)	10/22/2021	10/22/2026		405		389			399
				Subtotal Midwest	$	31,970	$	31,669		$	30,749
Northeast
—38.19% of net asset value
3SI Security Systems	Services: Consumer	6.8% (LIBOR + 5.8%)	12/17/2019	6/16/2023	$	3,905	$	3,888		$	3,905
Alcanza Clinical Research	Healthcare & Pharmaceuticals	6.3% (LIBOR + 5.3%)	12/21/2021	12/15/2027		500		493			492
Alcanza Clinical Research⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	6.3% (LIBOR + 5.3%)	12/21/2021	12/15/2027		—		(2	)		—
Alcanza Clinical Research^(9)(22)	Healthcare & Pharmaceuticals	6.3% (LIBOR + 5.3%)	12/21/2021	12/15/2027		—		(1	)		—

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2021

(dollar amounts in thousands)

Initial

Maturity/

Principal⁽⁵⁾

Acquisition

Dissolution

No. of Shares /

Type of Investment/Portfolio company ^(1)(2)(3)

Industry

Interest Rate⁽⁴⁾

Date

No. of Units

Amortized Cost

Fair Value ⁽⁶⁾

Aurotech, LLC ⁽¹⁹⁾

High Tech Industries

8.0% (LIBOR + 7.0%)

10/30/2020

10/30/2025

2,939

2,890

1,690

Aurotech, LLC ^(8)(9)(19)

High Tech Industries

8.0% (LIBOR + 7.0%)

10/30/2020

10/30/2025

—

)

—

Automated Control Concepts, Inc.

High Tech Industries

6.5% (LIBOR + 5.5%)

10/22/2021

10/22/2026

2,660

2,621

2,620

Automated Control Concepts, Inc.⁽⁸⁾

High Tech Industries

6.5% (LIBOR + 5.5%)

10/22/2021

10/22/2026

167

155

164

Cedar Services Group, LLC

Sovereign & Public Finance

7.0% (LIBOR + 6.0%)

6/9/2021

6/11/2027

2,904

2,863

2,875

Cedar Services Group, LLC ⁽⁸⁾⁽⁹⁾

Sovereign & Public Finance

7.0% (LIBOR + 6.0%)

6/9/2021

6/11/2027

—

(11

)

—

Cedar Services Group, LLC ⁽²²⁾

Sovereign & Public Finance

7.0% (LIBOR + 6.0%)

6/9/2021

6/11/2027

1,274

1,254

1,261

Certify, Inc.

Services: Business

6.5% (LIBOR + 5.5%)

2/28/2019

2/28/2024

1,544

1,534

1,544

Certify, Inc. ⁽²³⁾

Services: Business

6.5% (LIBOR + 5.5%)

2/28/2019

2/28/2024

211

209

211

Certify, Inc. ⁽⁸⁾

Services: Business

6.5% (LIBOR + 5.5%)

2/28/2019

2/28/2024

ConvenientMD

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

6/9/2021

6/15/2027

5,473

5,396

5,473

ConvenientMD ⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

6/9/2021

6/15/2027

—

)

—

ConvenientMD ^(9)(22)

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

6/9/2021

6/15/2027

—

)

—

Danforth Advisors

Services: Business

6.3% (LIBOR + 5.3%)

12/9/2021

12/9/2027

191

188

Danforth Advisors

Services: Business

6.3% (LIBOR + 5.3%)

12/9/2021

12/9/2027

HealthDrive Corporation

Healthcare & Pharmaceuticals

6.5% (LIBOR + 5.5%)

12/21/2018

12/21/2023

9,700

9,661

9,700

HealthDrive Corporation

Healthcare & Pharmaceuticals

6.5% (LIBOR + 5.5%)

8/30/2021

12/21/2023

100

HealthDrive Corporation ⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

6.5% (LIBOR + 5.5%)

12/21/2018

12/21/2023

—

)

—

HealthDrive Corporation ⁽²²⁾

Healthcare & Pharmaceuticals

6.5% (LIBOR + 5.5%)

8/30/2021

12/21/2023

Marlin DTC-LS Midco 2, LLC ⁽⁸⁾⁽⁹⁾

Services: Consumer

7.5% (LIBOR + 6.5%)

3/5/2021

7/1/2025

—

)

—

Marlin DTC-LS Midco 2, LLC

Services: Consumer

7.5% (LIBOR + 6.5%)

3/5/2021

7/1/2025

3,131

3,081

3,131

Multi Specialty Healthcare LLC

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.3%)

12/18/2020

12/18/2026

3,752

3,687

3,752

Multi Specialty Healthcare LLC ⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.3%)

12/18/2020

12/18/2026

—

(12

)

—

Multi Specialty Healthcare LLC

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.3%)

9/24/2021

12/18/2026

100

Multi Specialty Healthcare LLC ⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.3%)

9/24/2021

12/18/2026

—

)

—

Newcleus, LLC

Insurance

6.5% (LIBOR + 5.5%)

8/2/2021

8/2/2026

5,059

4,990

4,983

Newcleus, LLC⁽⁸⁾⁽⁹⁾

Insurance

6.5% (LIBOR + 5.5%)

8/2/2021

8/2/2026

—

)

—

Newcleus, LLC^(9)(22)

Insurance

6.5% (LIBOR + 5.5%)

8/2/2021

8/2/2026

—

)

—

NWN Parent Holdings LLC

Telecommunications

7.5% (LIBOR + 6.5%)

5/26/2021

5/7/2026

3,291

3,262

3,175

NWN Parent Holdings LLC ⁽⁸⁾

Telecommunications

7.5% (LIBOR + 6.5%)

5/26/2021

5/7/2026

145

140

Own Yourself, LLC

Retail

7.5% (LIBOR + 6.5%)

11/12/2021

11/12/2025

6,000

5,889

5,888

Quartermaster Newco, LLC

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.0%)

7/31/2020

7/31/2025

3,096

3,074

3,096

Quartermaster Newco, LLC⁽⁸⁾⁽⁹⁾

Healthcare & Pharmaceuticals

7.3% (LIBOR + 6.0%)

7/31/2020

7/31/2025

—

)

—

Revlon Consumer Products Corporation ⁽¹⁴⁾

Consumer Goods: Non-Durable

7.5% (LIBOR + 5.8%)

3/8/2021

5/7/2024

2,500

2,484

2,500

smarTours, LLC

Services: Consumer

7.8% (LIBOR + 6.8%)

12/21/2020

12/31/2024

712

smarTours, LLC^(8)(11)

Services: Consumer

8.8% (LIBOR+ 7.8%) (1.0% Cash + 7.8% PIK)

12/21/2020

12/31/2024

2,338

TriStrux, LLC

Telecommunications

6.3% (LIBOR + 5.3%)

12/23/2021

12/15/2026

2,773

2,731

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2021

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost			Fair Value ⁽⁶⁾
TriStrux, LLC⁽⁸⁾	Telecommunications	6.3% (LIBOR + 5.3%)	12/23/2021	12/15/2026		121		105			119
TriStrux, LLC^(9)(29)	Telecommunications	6.3% (LIBOR + 5.3%)	12/23/2021	12/15/2026		—		(11	)		—
USALCO, LLC	Chemicals, Plastics, & Rubber	7.0% (LIBOR + 6.0%)	11/5/2021	10/19/2027		3,000		2,971			2,970
Xcel Brands, Inc.	Consumer Goods: Non-Durable	8.5% (LIBOR + 7.5%)	12/30/2021	4/9/2025		7,031		6,981			6,926
				Subtotal Northeast	$	74,662	$	73,747		$	72,829
Southeast
—26.81% of net asset value
A&R Logistics Holdings, Inc.	Transportation: Cargo	7.0% (LIBOR + 6.0%)	7/29/2021	5/3/2025	$	2,373	$	2,331		$	2,373
Alpine X	Services: Business	7.0% (LIBOR + 6.0%)	12/27/2021	12/21/2027		1,426		1,397			1,397
Alpine X⁽⁸⁾⁽⁹⁾	Services: Business	7.0% (LIBOR + 6.0%)	12/27/2021	12/21/2027		—		(5	)		—
Alpine X^(9)(29)	Services: Business	7.0% (LIBOR + 6.0%)	12/27/2021	12/21/2027		—		(9	)		—
Apex Services Partners, LLC	Capital Equipment	6.3% (LIBOR + 5.3%)	2/11/2020	7/31/2025		5,287		5,252			5,287
ECL Entertainment ⁽²⁷⁾	Hotel, Gaming, & Leisure	8.3% (LIBOR + 7.5%)	3/31/2021	5/1/2028		2,985		2,957			3,045
GC EOS Buyer, Inc. ⁽²⁷⁾	Automotive	4.6% (LIBOR + 4.5%)	3/31/2021	8/1/2025		3,959		3,934			3,960
Groundworks Operations, LLC	Construction & Building	6.0% (LIBOR + 5.0%)	7/9/2020	1/17/2026		1,927		1,898			1,927
Groundworks Operations, LLC⁽⁸⁾⁽⁹⁾	Construction & Building	6.0% (LIBOR + 5.0%)	7/9/2020	1/17/2026		—		(1	)		—
Groundworks Operations, LLC ⁽²²⁾	Construction & Building	6.0% (LIBOR + 5.0%)	7/9/2020	1/17/2026		849		840			849
Groundworks Operations, LLC⁽²²⁾	Construction & Building	6.0% (LIBOR + 5.0%)	7/9/2020	1/17/2026		1,320		1,304			1,320
Groundworks Operations, LLC	Construction & Building	6.0% (LIBOR + 5.0%)	3/18/2021	1/17/2026		2,500		2,468			2,500
Lighthouse Lab Services	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	10/25/2021	10/25/2027		5,394		5,315			5,313
Lighthouse Lab Services⁽⁸⁾	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	10/25/2021	10/25/2027		614		591			604
Lighthouse Lab Services	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	10/25/2021	10/25/2027		—		—			—
Quorum Health Resources	Healthcare & Pharmaceuticals	6.3% (LIBOR + 5.3%)	5/28/2021	5/26/2027		5,366		5,319			5,313
Quorum Health Resources ⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	6.3% (LIBOR + 5.3%)	5/28/2021	5/26/2027		—		(6	)		—
SuperHero Fire Protection, LLC	Services: Business	7.3% (LIBOR + 6.3%)	9/1/2021	9/1/2026		4,294		4,232			4,229
SuperHero Fire Protection, LLC ⁽⁸⁾	Services: Business	7.3% (LIBOR + 6.3%)	9/1/2021	9/1/2026		109		103			107
SuperHero Fire Protection, LLC ⁽²²⁾	Services: Business	7.3% (LIBOR + 6.3%)	9/1/2021	9/1/2026		691		673			681
Technology Partners, LLC	High Tech Industries	6.5% (LIBOR + 5.5%)	11/16/2021	11/16/2027		4,668		4,576			4,574
Technology Partners, LLC⁽⁸⁾⁽⁹⁾	High Tech Industries	6.5% (LIBOR + 5.5%)	11/16/2021	11/16/2027		—		(15	)		—
Technology Partners, LLC^(9)(22)	High Tech Industries	6.5% (LIBOR + 5.5%)	11/16/2021	11/16/2027		—		(10	)		—
The Mulch & Soil Company, LLC	Environmental Industries	6.8% (LIBOR + 5.8%)	4/30/2021	4/30/2026		3,483		3,418			3,448
The Mulch & Soil Company, LLC ⁽⁸⁾	Environmental Industries	6.8% (LIBOR + 5.8%)	4/30/2021	4/30/2026		461		444			456
TTF Holdings, LLC (Soliant)	Healthcare & Pharmaceuticals	5.0% (LIBOR + 4.3%)	3/31/2021	3/25/2028		3,730		3,705			3,739
				Subtotal Southeast	$	51,436	$	50,711		$	51,122
Southwest
—15.92% of net asset value
Allied Wireline Services, LLC ^(11)(24)	Energy: Oil & Gas	10.0% PIK	6/15/2020	6/15/2025	$	5,446	$	4,971		$	3,903
BCDI Rodeo Dental Buyer, LLC	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	5/14/2019	5/14/2025		5,798		5,764			5,769
BCDI Rodeo Dental Buyer, LLC ⁽⁸⁾	Healthcare & Pharmaceuticals	6.0% (LIBOR + 5.0%)	5/14/2019	5/14/2025		565		556			563

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2021

(dollar amounts in thousands)

Initial

Maturity/

Principal⁽⁵⁾

Acquisition

Dissolution

No. of Shares /

Type of Investment/Portfolio company ^(1)(2)(3)

Industry

Interest Rate⁽⁴⁾

Date

No. of Units

Amortized Cost

Fair Value ⁽⁶⁾

BCDI Rodeo Dental Buyer, LLC ⁽⁸⁾

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

5/14/2019

5/14/2025

1,295

1,287

1,289

BCDI Rodeo Dental Buyer, LLC ^(9)(29)

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

11/22/2021

11/22/2027

—

)

—

Camin Cargo Control, Inc.

Services: Business

7.5% (LIBOR + 6.5%)

6/10/2021

6/4/2026

3,731

3,698

3,694

Endo1 Partners⁽³⁰⁾

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

12/17/2021

3/24/2026

483

463

473

Owl Landfill Services, LLC

Environmental Industries

6.8% (LIBOR + 5.8%)

6/30/2021

6/30/2026

3,512

3,463

3,477

Riveron Acquisition Holdings, Inc.

Finance

6.8% (LIBOR + 5.8%)

5/22/2019

5/22/2025

8,097

8,006

8,097

TMA Buyer, LLC

High Tech Industries

6.8% (LIBOR + 5.8%)

9/30/2021

9/30/2027

3,137

3,092

3,090

TMA Buyer, LLC⁽⁸⁾⁽⁹⁾

High Tech Industries

6.8% (LIBOR + 5.8%)

9/30/2021

9/30/2027

—

)

—

TMA Buyer, LLC^(9)(22)

High Tech Industries

6.8% (LIBOR + 5.8%)

9/30/2021

9/30/2027

—

)

—

Subtotal Southwest

32,064

31,286

30,355

West

—46.92% of net asset value

A&A Global Imports, LLC

Containers, Packaging, & Glass

7.0% (LIBOR + 6.0%)

6/1/2021

6/1/2026

2,242

2,201

2,231

A&A Global Imports, LLC ⁽⁸⁾

Containers, Packaging, & Glass

7.0% (LIBOR + 6.0%)

6/1/2021

6/1/2026

196

182

195

Action Point, Inc ⁽⁸⁾

Chemicals, Plastics, & Rubber

7.5% (LIBOR + 6.5%)

12/17/2020

6/17/2026

100

Action Point, Inc

Chemicals, Plastics, & Rubber

7.5% (LIBOR + 6.5%)

5/5/2021

11/5/2026

515

505

515

Action Point, Inc

Chemicals, Plastics, & Rubber

7.5% (LIBOR + 6.5%)

12/17/2020

6/17/2026

3,300

3,244

3,300

Action Point, Inc

Chemicals, Plastics, & Rubber

7.5% (LIBOR + 6.5%)

11/30/2021

11/30/2026

250

246

250

Alpine SG, LLC

High Tech Industries

6.5% (LIBOR + 5.5%)

11/5/2021

11/5/2027

5,607

5,515

5,523

Alpine SG, LLC⁽⁸⁾⁽⁹⁾

High Tech Industries

6.5% (LIBOR + 5.5%)

11/5/2021

11/5/2027

—

)

—

CC Amulet Management, LLC

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

8/31/2021

8/31/2027

5,129

5,056

5,052

CC Amulet Management, LLC⁽⁸⁾

Healthcare & Pharmaceuticals

7.3% (Prime + 4.0%)

8/31/2021

8/31/2027

256

245

252

CC Amulet Management, LLC^(9)(22)

Healthcare & Pharmaceuticals

6.0% (LIBOR + 5.0%)

8/31/2021

8/31/2027

—

)

—

DTI Holdco, Inc. ⁽²⁷⁾

Services: Business

5.8% (LIBOR + 4.8%)

3/31/2021

9/29/2023

3,918

3,835

3,860

EBS Intermediate LLC

Services: Consumer

6.0% (LIBOR + 5.0%)

10/2/2018

10/2/2023

7,694

7,646

7,694

EBS Intermediate LLC ⁽⁸⁾⁽⁹⁾

Services: Consumer

6.0% (LIBOR + 5.0%)

10/2/2018

10/2/2023

—

(10

)

—

EBS Intermediate LLC

Services: Consumer

6.0% (LIBOR + 5.0%)

5/5/2021

10/2/2023

248

244

248

Evergreen Services Group, LLC

High Tech Industries

7.0% (LIBOR + 6.0%)

11/13/2018

6/6/2024

9,244

9,215

9,244

Gener8, LLC

Services: Business

6.5% (LIBOR + 5.5%)

8/14/2018

8/8/2023

5,797

5,768

5,797

Gener8, LLC ⁽⁸⁾

Services: Business

6.5% (LIBOR + 5.5%)

8/14/2018

8/8/2023

600

593

600

Gener8, LLC

Services: Business

6.5% (LIBOR + 5.5%)

11/30/2021

8/8/2023

249

245

249

iLending LLC

Banking

7.5% (LIBOR + 6.5%)

6/21/2021

6/21/2026

4,413

4,353

4,414

iLending LLC ⁽⁸⁾⁽⁹⁾

Banking

7.5% (LIBOR + 6.5%)

6/21/2021

6/21/2026

—

(10

)

—

Ingenio, LLC

Media: Broadcasting & Subscription

8.0% (LIBOR + 7.0%)

8/3/2021

8/3/2026

5,270

5,198

5,191

Integrated Pain Management Medical Group, Inc.

Healthcare & Pharmaceuticals

7.5% (LIBOR + 6.5%)

6/7/2021

6/17/2026

3,204

3,146

3,204

Integrated Pain Management Medical Group, Inc.^(9)(22)

Healthcare & Pharmaceuticals

7.5% (LIBOR + 6.5%)

6/7/2021

6/17/2026

—

)

—

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2021

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost			Fair Value ⁽⁶⁾
Integrated Pain Management Medical Group, Inc.⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	7.5% (LIBOR + 6.5%)	6/7/2021	6/17/2026		—		(8	)		—
Lash Opco LLC	Consumer Goods: Non-Durable	9.3% (Prime + 6.0%)	9/18/2020	3/18/2026		2,992		2,934			2,992
Lash Opco LLC ⁽⁸⁾⁽⁹⁾	Consumer Goods: Non-Durable	8.0% (LIBOR + 7.0%)	8/18/2021	8/18/2026		—		(8	)		—
Lash Opco LLC	Consumer Goods: Non-Durable	8.0% (LIBOR + 7.0%)	8/18/2021	1/18/2027		3,050		2,984			3,050
Lash Opco LLC	Consumer Goods: Non-Durable	9.3% (Prime + 6.0%)	12/31/2020	3/18/2026		990		969			990
MarkLogic Corporation	High Tech Industries	7.0% (LIBOR + 6.0%)	10/20/2020	10/20/2025		3,119		3,064			3,119
MarkLogic Corporation⁽⁸⁾⁽⁹⁾	High Tech Industries	7.0% (LIBOR + 6.0%)	10/20/2020	10/20/2025		—		(4	)		—
MarkLogic Corporation	High Tech Industries	7.0% (LIBOR + 6.0%)	11/23/2021	10/20/2025		847		830			847
MarkLogic Corporation⁽⁸⁾⁽⁹⁾	High Tech Industries	7.0% (LIBOR + 6.0%)	11/23/2021	10/20/2025		—		(6	)		—
MeriCal, LLC	Consumer Goods: Non-Durable	7.3% (LIBOR + 6.3%)	11/16/2018	11/16/2023		7,342		7,342			7,342
Sequoia Consulting Group, LLC	Healthcare & Pharmaceuticals	6.8% (LIBOR + 5.8%)	12/17/2021	11/23/2026		197		194			194
Sequoia Consulting Group, LLC⁽⁸⁾⁽⁹⁾	Healthcare & Pharmaceuticals	6.8% (LIBOR + 5.8%)	12/17/2021	11/23/2026		—		(1	)		—
Socius Insurance Services, Inc.	Banking	6.3% (LIBOR + 5.3%)	6/30/2021	6/30/2027		2,933		2,878			2,903
Socius Insurance Services, Inc. ⁽⁸⁾⁽⁹⁾	Banking	6.3% (LIBOR + 5.3%)	6/30/2021	6/30/2027		—		(10	)		—
Socius Insurance Services, Inc. ^(9)(22)	Banking	6.3% (LIBOR + 5.3%)	6/30/2021	6/30/2027		—		(17	)		—
SolutionReach, Inc.	Services: Consumer	6.8% (LIBOR + 5.8%)	1/17/2019	1/17/2024		5,930		5,881			5,930
SolutionReach, Inc.⁽⁸⁾⁽⁹⁾	Services: Consumer	6.8% (LIBOR + 5.8%)	1/17/2019	1/17/2024		—		(8	)		—
SRS Acquiom Holdings LLC	Finance	7.0% (LIBOR + 6.0%)	11/8/2018	11/8/2024		4,200		4,180			4,200
				Subtotal West	$	89,832	$	88,687		$	89,486

		Subtotal first lien senior secured debt			$	288,929	$	284,892		$	283,329

Second lien debt
—2.50% of net asset value
Northeast
—2.50% of net asset value
Merchants Capital Access, LLC ⁽¹⁴⁾	Banking	11.5% (LIBOR + 10.5%)	4/20/2015	4/30/2022	$	4,250	$	4,246		$	4,250
smarTours, LLC^(11)(19)	Services: Consumer	8.8% PIK (LIBOR + 7.8%)	12/21/2020	12/31/2024		1,417		635			524
				Subtotal Northeast	$	5,667	$	4,881		$	4,774

			Subtotal second lien debt		$	5,667	$	4,881		$	4,774
Equity investments
—1.59% of net asset value
Midwest
—0.10% of net asset value
Doxa Insurance Holdings, LLC ^(10)(13)(18)	Insurance		12/4/2020			174,984	$	173		$	194
Matilda Jane Holdings, Inc. ^(12)(17)	Consumer Goods: Non-Durable		4/28/2017			2,587,855		489			—
			Subtotal Midwest				$	662		$	194

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2021

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾
Northeast
—1.25% of net asset value
Certify, Inc.⁽¹⁸⁾	Services: Business		2/28/2019			841	$	175	$	254
Specialty Brands Holdings, LLC ^(10)(17)	Services: Business		6/29/2018			58		—		—
Specialty Brands Holdings, LLC^(10)(18)	Services: Business		6/29/2018			1,232		—		—
SPST Holdings, LLC ^(10)(13)(18)	Services: Consumer		12/21/2020			820,040		216		—
SPST Holdings, LLC ^(10)(13)(17)	Services: Consumer		12/21/2020			3,237		—		—
SPST Investors II, LLC ^{(10)(13)(18)(25)}	Services: Consumer		12/21/2020			51,095		51		—
Wheels Up Experience Inc. ^{(13)(14)(18)(28)}	Transportation: Consumer		1/31/2014			460,392		1,000		2,136
			Subtotal Northeast				$	1,442	$	2,390
Southeast
—0.00% of net asset value
Virtus Aggregator, LLC ^{(10)(13)(14)(18)}	Healthcare & Pharmaceuticals		5/7/2020			10	$	32	$	—
			Subtotal Southeast				$	32	$	—
Southwest
—0.00% of net asset value
Allied Wireline Services, LLC ^(10)(13)(18)	Energy: Oil & Gas		6/15/2020			4,538		144		—
Allied Wireline Services, LLC ^(10)(13)(18)	Energy: Oil & Gas		6/15/2020			2,063		—		—
			Subtotal Southwest				$	144	$	-
West
—0.24% of net asset value
MeriCal, LLC ^{(10) (12) (17)}	Consumer Goods: Non-Durable		9/30/2016			521	$	505	$	455
MeriCal, LLC ^{(10) (12) (18)}	Consumer Goods: Non-Durable		9/30/2016			5,334		10		—
			Subtotal West				$	515	$	455

				Subtotal equity			$	2,795	$	3,039
Investments in funds
—1.92% of net asset value
Midwest
—1.61% of net asset value
Freeport Financial SBIC Fund LP ^(14)(18)(21)	Investment Funds And Vehicles		6/14/2013				$	2,957	$	3,070
				Subtotal Midwest			$	2,957	$	3,070
Southwest
—0.20% of net asset value
ACON Igloo Investors I, LLC ^(10)(18)(21)	Investment Funds And Vehicles		4/30/2014				$	1,673	$	385
				Subtotal Southwest			$	1,673	$	385
West
—0.11% of net asset value
Gryphon Partners 3.5, L.P. ^(14)(18)(21)	Investment Funds And Vehicles		11/20/2012				$	299	$	210

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2021

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾
				Subtotal West			$	299	$	210

			Subtotal investments in funds				$	4,929	$	3,665

Total non-controlled/non-affiliated investments
—154.59% of net asset value							$	297,497	$	294,807

Controlled investments
—51.01% of net asset value

First lien senior secured debt
—8.56% of net asset value
Southeast
—3.64% of net asset value
Loadmaster Derrick & Equipment, Inc.^{(11)(15)(19)(26)}	Energy: Oil & Gas	11.3% (LIBOR + 10.3% PIK)	7/1/2016	12/31/2022	$	12,608	$	7,307	$	—
Loadmaster Derrick & Equipment, Inc.^{(11)(15)(19)(26)}	Energy: Oil & Gas	13.0% (LIBOR + 12.0% PIK)	7/1/2016	12/31/2022		3,034		1,053		—
Loadmaster Derrick & Equipment, Inc.^{(11)(15)(19)(26)}	Energy: Oil & Gas	11.3% (LIBOR+ 10.3% PIK)	1/17/2017	12/31/2022		10,666		7,825		6,933
				Subtotal Southeast	$	26,308	$	16,185	$	6,933
Southwest
—4.92% of net asset value
OEM Group, LLC ⁽¹⁵⁾	Capital Equipment	8.5% (LIBOR + 7.5%)	9/30/2020	9/30/2025	$	9,385	$	9,385	$	9,385
				Subtotal Southwest	$	9,385	$	9,385	$	9,385

			Subtotal first lien senior secured debt		$	35,693	$	25,570	$	16,318

Second lien debt
—4.27% of net asset value
Southwest
—4.27% of net asset value
OEM Group, LLC ^(11)(15)(24)	Capital Equipment	10.0% PIK	9/30/2020	9/30/2025	$	49,884	$	22,203	$	8,151
				Subtotal Southwest	$	49,884	$	22,203	$	8,151

			Subtotal second lien debt		$	49,884	$	22,203	$	8,151

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2021

(dollar amounts in thousands)

			Initial	Maturity/	Principal⁽⁵⁾
			Acquisition	Dissolution	No. of Shares /
Type of Investment/Portfolio company ^(1)(2)(3)	Industry	Interest Rate⁽⁴⁾	Date	Date	No. of Units		Amortized Cost		Fair Value ⁽⁶⁾
Equity investments
—0.00% of net asset value
Southeast
—0.00% of net asset value
Loadmaster Derrick & Equipment, Inc. ^(15)(17)	Energy: Oil & Gas		7/1/2016			2,956	$	1,114	$	—
Loadmaster Derrick & Equipment, Inc. ^(15)(18)	Energy: Oil & Gas		12/21/2016			12,131		—		—
				Subtotal Southeast			$	1,114	$	—
Southwest
—0.00% of net asset value
OEM Group, LLC^{(10)(12)(13)(15)(18)(20)}	Capital Equipment		3/16/2016			20,000	$	8,890	$	—
				Subtotal Southwest			$	8,890	$	—

				Subtotal equity			$	10,004	$	—

Investments in funds
—38.18% of net asset value
Northeast
—38.18% of net asset value
First Eagle Logan JV, LLC ^{(10)(14)(15)(16)(18)(21)}	Investment Funds And Vehicles		12/3/2014				$	91,887	$	72,803
				Subtotal Northeast			$	91,887	$	72,803

			Subtotal investments in funds				$	91,887	$	72,803
Total controlled investments
—51.01% of net asset value							$	149,664	$	97,272

Non-controlled/affiliated investments
—0.00% of net asset value
Investments in funds
—0.00% of net asset value
Northeast
—0.00% of net asset value
First Eagle Greenway Fund II, LLC ^{(10)(14)(18)(21)}	Investment Funds And Vehicles		3/1/2013				$	1	$	—
				Subtotal Northeast			$	1	$	—

			Subtotal investments in funds				$	1	$	—

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2021

(dollar amounts in thousands)

Initial

Maturity/

Principal⁽⁵⁾

Acquisition

Dissolution

No. of Shares /

Type of Investment/Portfolio company ^(1)(2)(3)

Industry

Interest Rate⁽⁴⁾

Date

No. of Units

Amortized Cost

Fair Value ⁽⁶⁾

Total non-controlled/affiliated investments

—0.00% of net asset value

—

Total investments—205.59% of net asset value

447,162

392,079

⁽¹⁾

⁽²⁾	All investments are pledged as collateral under the Revolving Facility.

⁽³⁾

As of December 31, 2021, 25.0% and 23.9% of the Company’s total investments on a cost and fair value basis, respectively, are in non-qualifying assets. The Company may not acquire any non-qualifying assets unless, at the time of the acquisition, qualifying assets represent at least 70% of the Company’s total assets.

⁽⁴⁾

Variable interest rate investments bear interest in reference to London Interbank offer rate, or LIBOR, or Alternate Base Rate, or ABR, which are effective as of December 31, 2021. LIBOR loans are typically indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option, and ABR rates are typically indexed to the current prime rate or federal funds rate. Each of LIBOR and ABR rates may be subject to interest floors. As of December 31, 2021, the 30-day, 60-day, 90-day and 180-day LIBOR rates were 0.10%, 0.15%, 0.21% and 0.34%, respectively.

⁽⁵⁾	Principal includes accumulated PIK interest and is net of repayments.

⁽⁶⁾	Unless otherwise indicated, all investments are valued using significant unobservable inputs. Refer to Level 3 fair value measurements quantitative information table in Note 3 of the Consolidated Financial Statements for further detail.

⁽⁷⁾	Foreign company or foreign co-borrower at the time of investment and, as a result, is not a qualifying asset under Section 55(a) of the 1940 Act.

⁽⁸⁾	Company receives 0.50% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁹⁾	The negative cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.

⁽¹⁰⁾	Member interests of limited liability companies are the equity equivalents of the stock of corporations.

⁽¹¹⁾	In certain circumstances, at the option of the issuer, interest can be paid in cash or cash and PIK. The percentage of PIK shown is the maximum PIK that can be elected by the company.

⁽¹²⁾	Equity ownership may be held in shares or units of companies related to the portfolio company.

⁽¹³⁾	Interest held by a wholly owned subsidiary of First Eagle Alternative Capital BDC, Inc.

⁽¹⁴⁾	Investments that the Company has determined are not “qualifying assets” under Section 55(a) of the 1940 Act. The status of these assets under the 1940 Act is subject to change. The Company monitors the status of these assets on an ongoing basis.

⁽¹⁵⁾

As defined in Section 2(a)(9) of the 1940 Act, the Company is deemed to control this portfolio company because it owns more than 25% of the portfolio company’s outstanding voting securities. See Schedule 12-14 in the accompanying notes to the consolidated financial statements for transactions for the year ended December 31, 2021 in which the issuer was a portfolio company that the Company is deemed to control.

⁽¹⁶⁾

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Consolidated Schedules of Investments

December 31, 2021

(dollar amounts in thousands)

⁽¹⁷⁾	Preferred stock.

⁽¹⁸⁾	Common stock and member interest.

⁽¹⁹⁾	Loan was on non-accrual as of December 31, 2021.

⁽²⁰⁾	Includes $577 of cost and $0 of fair value related to a non-controlling interest as a result of consolidating a blocker corporation that holds equity in OEM Group, LLC as of December 31, 2021.

⁽²¹⁾	Investment is measured at fair value using net asset value.

⁽²²⁾	Company receives 1.00% unfunded commitment fee on revolving loan facility.

⁽²³⁾	Company receives 0.25% unfunded commitment fee on delayed draw term loan facility.

⁽²⁴⁾	Restructured loan for which income is not being recognized as of December 31, 2021.

⁽²⁵⁾	The underlying investment of SPST Investors II, LLC is SPST Holdings, LLC which the Company holds 0.40% ownership interest in SPST Holdings, LLC’s common shares, and 0.44% ownership interest in SPST Holdings, LLC’s preferred shares.

⁽²⁶⁾	On January 1, 2021, the loan was placed in forbearance, with a forbearance termination date subsequently amended to December 31, 2022.

⁽²⁷⁾	Investments are valued using market quotations. Refer to the Level 2 fair value measurements quantitative information table in Note 3 of the Consolidated Financial Statements for further detail.

⁽²⁸⁾	Investment is valued using public stock price. Refer to the Level 1 fair value measurements quantitative information table in Note 3 of the Consolidated Financial Statements for further detail.

⁽²⁹⁾	Company receives 0.75% unfunded commitment fee on delayed draw term loan facility.

⁽³⁰⁾	Company receives 5.00% unfunded commitment fee on delayed draw term loan facility.

See accompanying notes to these consolidated financial statements.

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

(in thousands, except per share data)

(unaudited)

1. Organization

First Eagle Alternative Capital BDC, Inc. (formerly known as THL Credit, Inc.), or the Company, was organized as a Delaware corporation on May 26, 2009. The Company has elected to be regulated as a business development company, or BDC, under the Investment Company Act of 1940, as amended, or 1940 Act. The Company has elected to be treated for tax purposes as a regulated investment company, or RIC, under the Internal Revenue Code of 1986, as amended, or the Code. The Company’s investment objective is to generate both current income and capital appreciation, primarily through privately negotiated investments in debt and equity securities of middle market companies.

The Company has established from time to time wholly owned subsidiaries or other subsidiaries that are structured as Delaware entities, or as tax 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). Corporate subsidiaries are not consolidated for income tax purposes and may incur income tax expense as a result of their ownership of portfolio companies.

The Company has a wholly owned subsidiary, First Eagle Alternative Capital Agent, Inc., which serves as the administrative agent on certain investment transactions.

2. Significant Accounting Policies and Recent Accounting Pronouncements

Basis of Presentation

The Company is an investment company following the accounting and reporting guidance under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services—Investment Companies.

The consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. In accordance with Article 6 of Regulation S-X under the Securities Act of 1933, as amended, and the Securities and Exchange Act of 1934, as amended, the Company generally will not consolidate its interest in any company other than majority owned investment company subsidiaries and controlled operating companies substantially all of whose business consists of providing services to the Company.

The accompanying consolidated financial statements of the Company have been presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. In the opinion of management, the unaudited financial results included herein contain all adjustments, consisting solely of normal accruals, considered necessary for the fair statement of financial statements for the interim period included herein. The current period’s results of operations are not necessarily indicative of the operating results to be expected for the period ending December 31, 2022.

The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 3, 2022. The financial results of the Company’s portfolio companies are not consolidated in the financial statements.

The accounting records of the Company are maintained in U.S. dollars.

Consolidation

The Company follows the guidance in ASC Topic 946 Financial Services—Investment Companies and will not generally consolidate its investment in a company other than substantially owned investment company subsidiaries or a controlled operating company whose business consists of providing services to the Company. The Company consolidated the results of its substantially owned subsidiaries in its consolidated financial statements. The Company does not consolidate its non-controlling interest in First Eagle Logan JV, LLC or Logan JV. See also the disclosure under the heading, First Eagle Logan JV, LLC.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that may affect the reported amounts and disclosures in the financial statements. Changes in the economic environment, financial markets, creditworthiness of the Company’s portfolio companies and any other parameters used in determining these estimates could cause actual results to differ and these differences could be material.

Cash

Cash consists of funds held in demand deposit accounts at two financial institutions and, at certain times, balances may exceed the Federal Deposit Insurance Corporation insured limit and is therefore subject to credit risk. There were no cash equivalents as of March 31, 2022 and December 31, 2021.

Deferred Financing Costs

Deferred financing costs consist of fees and expenses paid in connection with the closing and amendments of the Revolving Facility (as defined in Note 7 hereto) and public offering of Notes (as defined in Note 7 hereto) including legal, accounting, printing fees and other related expenses, as well as costs incurred in connection with the filing of a shelf registration statement. These costs are capitalized at the time of payment and are amortized using the straight line and effective yield methods over the term of the Revolving Facility and Notes, respectively.

Under the Revolving Facility, if the borrowing capacity of the new arrangement is lower than the borrowing capacity of the old arrangement evaluated on a lender by lender basis, then any unamortized deferred financing costs would be expensed during the period in proportion to the decrease in the old arrangement for that lender. Any remaining unamortized deferred financing costs relating to the old arrangement would be deferred and amortized over the term of the new arrangement along with any costs associated with the new arrangement.

Under the Notes, if the Company extinguishes or substantially modifies the debt prior to maturity, any unamortized deferred financing costs are deducted from the carrying amount of the debt in determining the gain or loss from extinguishment. A modification is considered substantial if there is a greater than 10% change of the present value of cash flows under the old and new amended facilities.

Capitalized deferred financing costs related to the Revolving Facility are presented separately on the Company’s Consolidated Statements of Assets and Liabilities. Capitalized deferred financing costs related to the Notes are presented net against the respective balances outstanding on the Consolidated Statements of Assets and Liabilities. See also the disclosure in Note 7, Borrowings.

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, including cash, accounts payable and accrued expenses, approximate fair value due to their short-term nature. The carrying amounts and fair values of the Company’s long-term debt obligations are disclosed in Note 7, Borrowings.

Valuation of Investments

The Company accounts for its investment portfolio at fair value. As a result, the Company follows the provisions of ASC 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 the portfolio investment is to be sold in the principal market to independent market participants, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal market that are independent, knowledgeable and willing and able to transact.

Investments for which market quotations are readily available and reliable are valued using market quotations, which are generally obtained from an independent pricing service or broker-dealers or market makers. Debt and equity securities for which market quotations are not readily available or are determined to be unreliable are valued at fair value as determined in good faith by the Company’s board of directors. Because the Company expects that there will not be a readily available market value for many of the investments in the Company’s portfolio, it is expected that many of the Company’s portfolio investments’ values will be determined in good faith by the Company’s board of directors in accordance with a documented valuation policy that has been reviewed and approved by the Company’s board of directors and in accordance with GAAP. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

With respect to investments for which market quotations are not readily available or are determined to be unreliable, the Company undertakes a multi- step valuation process each quarter, as described below:

•

the Company’s quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals responsible for managing portfolio investments;

•

preliminary valuation conclusions are then documented and are reviewed with the pricing committee of First Eagle Alternative Credit, LLC, or the Advisor;

•

to the extent determined by the audit committee of the Company’s board of directors, independent valuation firms are used to conduct independent appraisals of all “Level 3” investments and review the Advisor’s preliminary valuations in light of their own independent assessment unless the amounts are immaterial or have closed near quarter-end;

•

the audit committee of the Company’s board of directors reviews the preliminary valuations approved by the pricing committee of the Advisor and independent valuation firms and, if necessary, responds and supplements the valuation recommendation of the independent valuation firms to reflect any comments; and

•

the Company’s board of directors discusses valuations and determines the fair value of each investment in the Company’s portfolio in good faith based on the input of the Advisor, the respective independent valuation firms and the audit committee.

The types of factors that the Company may take into account in fair value pricing its investments include, as relevant, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flows, the markets in which the portfolio company does business, comparison to publicly traded securities and other relevant factors. The Company generally utilizes an income approach to value its debt investments and a combination of income and market approaches to value its equity investments. With respect to unquoted securities, the Advisor and the Company’s board of directors, in consultation with the Company’s independent third party valuation firms, values each investment considering, among other measures, discounted cash flow models, comparisons of financial ratios of peer companies that are public and other factors, which valuation is then approved by the board of directors.

Debt Investments

For debt investments, excluding asset-backed loans, the Company generally determines the fair value using an income, or yield, approach that analyzes the discounted cash flows of interest and principal for the debt security, as set forth in the associated loan agreements, as well as the financial position and credit risk of each portfolio investment. The Company’s estimate of the expected repayment date is generally the legal maturity date of the investment. The yield analysis considers changes in leverage levels, credit quality, portfolio company performance and other factors. The enterprise value, a market approach, is used to determine the value of equity and debt investments that are credit impaired, close to maturity or where the Company also holds a controlling equity interest. The method for determining enterprise value uses a multiple analysis, whereby appropriate multiples are applied to the portfolio company’s revenues or net income before net interest expense, income tax expense, depreciation and amortization, or EBITDA.

For asset-backed loans, the Company generally determines the fair value using liquidation approach that analyzes the underlying collateral of the loan, as set forth in the associated loan agreements and the borrowing base certificates. Liquidation valuations may be determined using a net orderly liquidation value, a forced liquidation value, or other methodology. Such liquidation values may be further reduced by certain reserves that may reduce the value of the collateral available to support the outstanding debt in a wind down scenario (the net realized value of the collateral).

Escrow and Other Receivables

Escrow and other receivables are categorized within Level 3 of the fair value hierarchy where the net realizable value of the escrow and other receivables approximates fair value. The fair value is determined using probability weighted scenario analysis.

Equity

The Company generally uses the market approach to value its equity investments. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that the Company may take into account in fair value pricing the Company’s investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, the current investment performance rating, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to

make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, transaction comparables, the Company’s principal market as the reporting entity and enterprise values, among other factors.

Investment in Funds

In circumstances in which net asset value per share of an investment is determinative of fair value, the Company estimates the fair value of an investment in an investment company using the net asset value per share of the investment (or its equivalent) without further adjustment if the net asset value per share of the investment is determined in accordance with the specialized accounting guidance for investment companies as of the reporting entity’s measurement date.

Foreign Currency

Foreign currency amounts are translated into U.S. dollars on the following basis:

•

cash and cash equivalents, market value of investments, outstanding debt on revolving credit facilities, other assets and liabilities: at the spot exchange rate on the last business day of the period; and

•

purchases and sales of investments, borrowings and repayments of such borrowings, income and expenses: at the rates of exchange prevailing on the respective dates of such transactions.

Although net assets and fair values are presented based on the applicable foreign exchange rates described above, the Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in fair values of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Fluctuations arising from the translation of foreign currency borrowings are included with the net change in unrealized gains (losses) on translation of assets and liabilities in foreign currencies on the Consolidated Statements of Operations.

Investments denominated in foreign currencies and foreign currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.

The Company’s current approach to hedging the foreign currency exposure in its non-U.S. dollar denominated investments is primarily to borrow the necessary local currency under the Company’s Revolving Facility (as defined in Note 7) to fund these investments.

Security Transactions, Payment-in-Kind, Income Recognition, Realized/Unrealized Gains or Losses

Security transactions are recorded on a trade-date basis. The Company measures realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specific identification method. Net realized gains and losses reflect the impact of investments written off during the period, if any. The Company reports changes in fair value of investments that are measured at fair value as a component of net change in unrealized appreciation or depreciation on investments in the Consolidated Statements of Operations.

Interest Income

Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis to the extent that the Company expects to collect such amounts. Original issue discount, representing the estimated fair value of detachable equity or warrants obtained in conjunction with the acquisition of debt securities and market discount or premium are capitalized and accreted or amortized into interest income over the life of the respective security using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion/amortization of discounts and premiums, if any.

The Company capitalizes and amortizes upfront loan origination fees received in connection with the closing of investments. The unearned income from such fees is accreted into interest income over the contractual life of the loan based on the effective interest method. Upon prepayment of a loan or debt security, any prepayment premiums, unamortized upfront loan origination fees, and unamortized discounts are recorded as interest income.

The Company will recognize any earned exit or back-end fees into income when it believes the amounts will ultimately become collected by using either the beneficial interest model or other appropriate income recognition frameworks.

Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more and/or when it is no longer probable that principal or interest will be collected. However, the Company may make exceptions to this policy if the loan has sufficient collateral value and is in the process of collection. The Company records the reversal of any previously accrued income against the same income category reflected in the Consolidated Statement of Operations. As of March 31, 2022, the Company had loans on non-accrual status with an amortized cost basis of $21,017 and fair value of $8,197. As of December 31, 2021, the Company had loans on non-accrual status with an amortized cost basis of $19,703 and fair value of $9,147.

In certain instances, the Company may enter into an agreement to restructure a loan, where the Company determined the full balance of principal or interest may not be collectible at the date of origination. As a result of this determination, the Company does not recognize interest income on these balances. As of March 31, 2022, the Company had restructured loans with an amortized cost basis of $27,174 and fair value of $11,676, which meet the above criteria. As of December 31, 2021, the Company had restructured loans with an amortized cost basis of $27,174 and fair value of $12,054.

PIK Interest Income

The Company has investments in its portfolio which contain a contractual paid-in-kind, or PIK, interest provision. PIK interest is computed at the contractual rate specified in each investment agreement, is added to the principal balance of the investment, and is recorded as income. The Company will cease accruing PIK interest if there is insufficient value to support the accrual or if the Company does not expect amounts to be collectible and will generally only begin to recognize PIK income again when all principal and interest have been paid or upon the restructuring of the investment where the interest is deemed collectable. To maintain the Company’s status as a RIC, PIK interest income, which is considered investment company taxable income, must be paid out to stockholders in the form of dividends even though the Company has not yet collected the cash. Amounts necessary to pay these dividends may come from available cash.

The following shows a roll-forward of PIK income activity for the three months ended March 31, 2022 and 2021:

	Three months ended March 31,
	2022		2021
Accumulated PIK balance, beginning of period	$	1,260	$	1,160
PIK income capitalized/receivable		54		123
Accumulated PIK balance, end of period	$	1,314	$	1,283

Dividend Income

Dividend income on preferred equity investments is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity investments is recorded on the record date for private portfolio companies and on the ex-dividend date for publicly traded portfolio companies. Distributions received from a limited liability company or limited partnership investment are evaluated to determine if the distribution should be recorded as dividend income or a return of capital.

Other Income

The Company may also generate revenue in the form of fees from the management of First Eagle Greenway Fund II, LLC, structuring, arranger or due diligence fees, portfolio company administration fees, fees for providing significant managerial assistance and consulting fees.

In certain investment transactions, the Company may provide advisory services. For services that are separately identifiable and external evidence exists to substantiate fair value, income is recognized as earned. The Company had no income from advisory services related to portfolio companies for the three months ended March 31, 2022 and 2021.

U.S. Federal Income Taxes, Including Excise Tax

The Company has elected to be taxed as a RIC under Subchapter M of the Code and currently qualifies, and intends to continue to qualify each year, as a RIC under the Code. Accordingly, the Company is not subject to federal income tax on the portion of its taxable income and gains distributed to stockholders.

In order to qualify for favorable tax treatment as a RIC, the Company is required to distribute annually to its stockholders at least 90% of its investment company taxable income, as defined by the Code. To avoid a 4% U.S. federal excise tax on undistributed earnings, the Company is required to distribute each calendar year the sum of (i) 98% of its ordinary income for such calendar year, (ii) 98.2% of its capital gain net income for the one-year period ending October 31 of that calendar year and (iii) any income recognized, but not distributed, in preceding years and on which the Company paid no U.S. federal income tax.

The Company, at its discretion, may choose not to distribute all of its taxable income for the calendar year and pay a non-deductible 4% excise tax on this undistributed income. If the Company chooses to do so, all other things being equal, this would increase expenses and reduce the amount available to be distributed to stockholders. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such taxable income, the Company accrues excise taxes on estimated excess taxable income as taxable income is earned using an annual effective excise tax rate.

The annual effective excise tax rate is determined by dividing the estimated annual excise tax by the estimated annual taxable income. See also the disclosure in Note 9, Distributions, for a summary of recent dividends paid. For the three months ended March 31, 2022 and 2021, the Company incurred U.S. federal excise tax and other tax (benefits) expenses of $25 and $26, respectively.

Certain consolidated subsidiaries of the Company are subject to U.S. federal and state income taxes. These taxable entities are not consolidated for income tax purposes and may generate income tax liabilities or assets from permanent and temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries.

The following shows the breakdown of deferred income tax (provisions) benefits for the three months ended March 31, 2022 and 2021. There were no current income tax (provisions) benefits during the respective periods.

For the three months ended

March 31,

2022

2021

Benefit (provision) for taxes on unrealized loss/gain on investments

300

(331

)

These current and deferred income taxes are determined from taxable income estimates provided by portfolio companies organized as pass-through entities where the Company holds equity or equity-like investments in its corporate subsidiaries. These tax estimates may be subject to further change once tax information is finalized for the year. As of March 31, 2022 and December 31, 2021, $5 and $5, respectively, of income tax receivable was included in prepaid expenses and other assets on the Consolidated Statements of Assets and Liabilities. As of March 31, 2022 and December 31, 2021, $1,354 and $1,556, respectively, were included in deferred tax liability on the Consolidated Statements of Assets and Liabilities primarily relating to deferred taxes on unrealized gains on investments and other temporary book to tax differences held in its corporate subsidiaries. As of March 31, 2022 and December 31, 2021, $2,359 (net of $12,073 allowance) and $2,261 (net of $12,073 allowance), respectively of deferred tax assets were included in deferred tax assets on the Consolidated Statements of Assets and Liabilities relating to net operating loss carryforwards and unrealized losses on investments and other temporary book to tax differences that are expected to be used in future periods.

Under the RIC Modernization Act, the Company is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during post-enactment taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under the rules applicable to pre-enactment capital losses.

Because U.S. federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the consolidated financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

The Company follows the provisions under the authoritative guidance on accounting for and disclosure of uncertainty in tax positions. The provisions require management to determine whether a tax position of the Company is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. For tax positions not meeting the more likely than not threshold, the tax amount recognized in the consolidated financial statements is reduced by the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. There are no unrecognized tax benefits or obligations in the accompanying consolidated financial statements. Although the Company files U.S. federal and state tax returns, the Company’s major tax jurisdiction is U.S. federal. The Company’s U.S. federal tax years subsequent to 2019 remain subject to examination by taxing authorities.

Distributions

Distributions to stockholders are recorded on the applicable record date. The amount to be paid out as a dividend is determined by the Company’s board of directors on a quarterly basis. Net realized capital gains, if any, are generally distributed at least annually out of assets legally available for such distributions, although the Company may decide to retain such capital gains for investment.

Capital transactions in connection with the Company’s dividend reinvestment plan are recorded when shares are issued.

Recent Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848),” which provides optional expedients and exceptions for applying GAAP to contracts and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022, at the Company’s election.

In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848),” which clarifies certain optional expedients and exceptions for applying GAAP to derivatives affected by reference rate reform. ASU 2021-01 is effective as of January 7, 2021 through December 31, 2022, at the Company’s election.

The Company continues to evaluate the impact of the guidance and may apply other elections, as applicable, as the expected market transition to alternative reference rates evolves. The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 and ASU 2021-01 during the three months ended March 31, 2022.

LIBOR and certain other floating rate benchmark indices to which our floating rate loans and other loan agreements are tied, including, without limitation, the Euro Interbank Offered Rate, or EURIBOR, the Stockholm Interbank Offered Rate or STIBOR, the Australian Bank Bill Swap Reference Rate, or BBSY, the Canadian Dollar Offered Rate, or CDOR, the Swiss Average Rate Overnight, or SARON, and the Copenhagen Interbank Offering Rate, or CIBOR, or collectively, IBORs, are the subject of recent national, international and regulatory guidance and proposals for reform. As of December 31, 2021, the ICE Benchmark Association, or IBA, ceased publication of all non-USD LIBOR and the one-week and two-month USD LIBOR and, as previously announced, intends to cease publication of remaining U.S. dollar LIBOR settings immediately after June 30, 2023. Further, on March 15, 2022, the Consolidation Appropriations Act of 2022, which includes the Adjustable Interest Rate (LIBOR) Act, was signed into law in the U.S. This legislation establishes a uniform benchmark replacement process for financial contracts that mature after June 30, 2023 which do not contain clearly defined or practicable fallback provisions. The legislation also creates a safe harbor that shields lenders from litigation if they choose to utilize a replacement rate recommended by the Board of Governors of the Federal Reserve.

3. Investments

The following is a summary of the levels within the fair value hierarchy in which the Company invests as of March 31, 2022:

Description	Fair Value		Level 1		Level 2		Level 3
First lien senior secured debt	$	312,594	$	—	$	10,749	$	301,845
Second lien debt		11,426		—		—		11,426
Equity investments		2,151		1,432		—		719
Investment in Logan JV ⁽¹⁾		71,554		—		—		—
Investments in funds⁽¹⁾		2,973		—		—		—
Total investments	$	400,698	$	1,432	$	10,749	$	313,990

⁽¹⁾

Certain investments that are measured at fair value using net asset value totaling $74,527 have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.

The following is a summary of the levels within the fair value hierarchy in which the Company invests as of December 31, 2021:

Description	Fair Value		Level 1		Level 2		Level 3
First lien senior secured debt	$	299,647	$	—	$	10,865	$	288,782
Second lien debt		12,925		—		—		12,925
Equity investments		3,039		2,136		—		903
Investment in Logan JV ⁽¹⁾		72,803		—		—		—
Investments in funds ⁽¹⁾		3,665		—		—		—
Total investments	$	392,079	$	2,136	$	10,865	$	302,610

⁽¹⁾

Certain investments that are measured at fair value using net asset value totaling $76,468 have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities.

The following is a summary of the industry classification in which the Company invests as of March 31, 2022:

Industry	Amortized Cost		Fair Value		% of Total Portfolio			% of Net Assets
Investment Funds And Vehicles	$	96,077	$	74,527		18.59	%		40.66	%
Healthcare & Pharmaceuticals		70,123		70,431		17.58	%		38.42	%
Consumer Goods: Non-Durable		36,214		32,576		8.13	%		17.77	%
Services: Business		29,860		30,011		7.49	%		16.37	%
High Tech Industries		31,858		30,200		7.54	%		16.48	%
Services: Consumer		28,128		27,655		6.90	%		15.09	%
Capital Equipment		45,719		22,810		5.69	%		12.45	%
Banking		13,486		13,625		3.40	%		7.43	%
Retail		12,550		12,534		3.13	%		6.84	%
Finance		12,173		12,277		3.06	%		6.70	%
Energy: Oil & Gas		23,739		10,119		2.53	%		5.52	%
Insurance		9,370		9,490		2.37	%		5.18	%
Environmental Industries		7,313		7,363		1.84	%		4.02	%
Chemicals, Plastics, & Rubber		7,109		7,185		1.79	%		3.92	%
Construction & Building		6,499		6,580		1.64	%		3.59	%
Telecommunications		6,599		6,458		1.61	%		3.52	%
Containers, Packaging, & Glass		5,388		5,478		1.37	%		2.99	%
Sovereign & Public Finance		5,068		5,132		1.28	%		2.80	%
Media: Broadcasting & Subscription		5,085		5,075		1.27	%		2.77	%
Automotive		3,926		3,914		0.98	%		2.14	%
Hotel, Gaming, & Leisure		2,951		3,011		0.75	%		1.64	%
Transportation: Cargo		2,767		2,815		0.70	%		1.54	%
Transportation: Consumer		1,000		1,432		0.36	%		0.78	%
Total Investments	$	463,002	$	400,698		100.00	%		218.62	%

The following is a summary of the industry classification in which the Company invests as of December 31, 2021:

Industry	Amortized Cost		Fair Value		% of Total Portfolio			% of Net Assets
Investment Funds And Vehicles	$	96,817	$	76,468		19.51	%		40.09	%
Healthcare & Pharmaceuticals		60,628		60,963		15.55	%		31.96	%
Consumer Goods: Non-Durable		36,247		34,906		8.90	%		18.30	%
High Tech Industries		31,901		30,871		7.87	%		16.19	%
Services: Consumer		28,181		27,826		7.10	%		14.59	%
Services: Business		24,584		24,764		6.32	%		12.99	%
Capital Equipment		45,730		22,823		5.82	%		11.97	%
Banking		15,001		15,141		3.86	%		7.94	%
Retail		12,758		12,750		3.25	%		6.69	%
Finance		12,186		12,297		3.15	%		6.45	%
Energy: Oil & Gas		22,414		10,836		2.76	%		5.68	%
Insurance		9,249		9,398		2.40	%		4.93	%
Environmental Industries		7,325		7,381		1.88	%		3.87	%
Chemicals, Plastics, & Rubber		7,055		7,135		1.82	%		3.74	%
Construction & Building		6,509		6,596		1.68	%		3.46	%
Telecommunications		6,227		6,165		1.57	%		3.23	%
Media: Broadcasting & Subscription		5,198		5,191		1.32	%		2.72	%
Containers, Packaging, & Glass		4,824		4,918		1.25	%		2.58	%
Sovereign & Public Finance		4,106		4,136		1.05	%		2.17	%
Automotive		3,934		3,960		1.01	%		2.08	%
Hotel, Gaming, & Leisure		2,957		3,045		0.78	%		1.60	%
Transportation: Cargo		2,331		2,373		0.61	%		1.24	%
Transportation: Consumer		1,000		2,136		0.54	%		1.12	%
Total Investments	$	447,162	$	392,079		100.00	%		205.59	%

The following is a summary of the geographical concentration of the Company’s investment portfolio as of March 31, 2022:

Region	Amortized Cost		Fair Value		% of Total Portfolio			% of Net Assets
United States
Northeast	$	180,799	$	158,975		39.68	%		86.72	%
West		89,676		89,860		22.43	%		49.03	%
Southeast		69,767		58,021		14.48	%		31.66	%
Southwest		73,609		47,865		11.95	%		26.12	%
Midwest		35,040		31,846		7.95	%		17.38	%
Canada		14,111		14,131		3.53	%		7.71	%
Total Investments	$	463,002	$	400,698		100.02	%		218.62	%

The following is a summary of the geographical concentration of the Company’s investment portfolio as of December 31, 2021:

Region	Amortized Cost		Fair Value		% of Total Portfolio			% of Net Assets
United States
Northeast	$	171,958	$	152,796		38.97	%		80.12	%
West		89,501		90,151		22.99	%		47.27	%
Southwest		68,042		58,055		14.81	%		30.44	%
Midwest		73,581		48,276		12.31	%		25.31	%
Southeast		35,288		34,013		8.68	%		17.84	%
Canada		8,792		8,788		2.24	%		4.61	%
Total Investments	$	447,162	$	392,079		100.00	%		205.59	%

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Company discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). If any transfers occur between the levels or categories of the fair value hierarchy, they are assumed to have occurred at the beginning of the period. The guidance establishes three levels of the fair value hierarchy as follows:

Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2—Quoted prices in markets that are not considered to be active or financial instruments for which significant inputs are observable, either directly or indirectly;

Level 3—Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

The level of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by management.

The Company considers whether the volume and level of activity for the asset or liability have significantly decreased and identifies transactions that are not orderly in determining fair value. Accordingly, if the Company determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value. Valuation techniques such as an income approach might be appropriate to supplement or replace a market approach in those circumstances.

The Company has adopted the authoritative guidance under GAAP for estimating the fair value of investments in investment companies that have calculated net asset value per share in accordance with the specialized accounting guidance for investment companies. Accordingly, in circumstances in which net asset value per share of an investment is determinative of fair value, the Company estimates the fair value of an investment in an investment company using the net asset value per share of the investment (or its equivalent) without further adjustment if the net asset value per share of the investment is determined in accordance with the specialized accounting guidance for investment companies as of the reporting entity’s measurement date. Redemptions are not generally permitted in the Company’s investments in funds. The remaining term of the Company’s investments in funds, excluding its investment in the Logan JV, is expected to be within nine months to two years.

The following provides quantitative information about Level 3 fair value measurements as of March 31, 2022:

Description	Fair Value			Valuation Technique	Unobservable Inputs	Weighted Range (Average) ⁽¹⁾
First lien senior secured debt⁽²⁾	$	253,722		Discounted cash flows (income approach)	Comparative Yield	7.9%		-	8.8%		8.4%
		6,620		Market comparable companies (market approach)	EBITDA Multiple	3.1x		-	3.6x		(3.3x)
		9,385	⁽³⁾	Discounted cash flows (income approach)	Royalty Payment Discount Rate Minimum Payment Discount Rate Revenue Growth Rate	6.5% 4.5% 16.5%		- - -	11.5% 4.5% 25.7%		(9.0%) (4.5%) (21.1%)
		6,595		Market comparable companies (market approach)	Revenue Multiple	0.2x		-	0.7x		(0.5x)
		21,812		Recoverability	Collateral Value⁽⁴⁾	$	804,366	-	$	810,829	($807,598)
Second lien debt		8,151	⁽³⁾	Discounted cash flows (income approach)	Royalty Payment Discount Rate Minimum Payment Discount Rate Revenue Growth Rate	6.5% 4.5% 16.5%		- - -	11.5% 4.5% 25.7%		(9.0%) (4.5%) (21.1%)
		525		Market comparable companies (market approach)	EBITDA Multiple	0.7x		-	1.2x		(0.9x)
		2,750		Recoverability	Collateral Value ⁽⁴⁾	$	56,600	-	$	62,890	($59,745)
Equity investments		471		Market comparable companies (market approach)	EBITDA Multiple	9.9x		-	10.4x		(10.1x)
		248		Market comparable companies (market approach)	Revenue Multiple	9.8x		-	10.3x		(10x)
Total Level 3 Investments	$	310,279

⁽¹⁾	Averages were determined using a weighted average based upon the fair value of the investments in each investment category.

⁽²⁾	Excluded from the presentation is $3,711 of first lien senior secured debt for which the Advisor did not develop the unobservable inputs for the determination of fair value (examples include insufficient liquidity and single source quotations).

⁽³⁾	Investment relates to the Company's remaining investment in OEM Group, Inc.

⁽⁴⁾	There are various, company specific inputs used in the valuation analysis that relate to the liquidation value of a company's assets. The significant unobservable input used in the valuation model was collateral value.

The following provides quantitative information about Level 3 fair value measurements as of December 31, 2021:

Description	Fair Value			Valuation Technique	Unobservable Inputs	Weighted Range (Average) ⁽¹⁾
First lien senior secured debt⁽²⁾	$	239,595		Discounted cash flows (income approach)	Comparative Yield	7.4%		-	8.3%		7.8%
		3,904		Market comparable companies (market approach)	EBITDA Multiple	5.3x		-	5.3x		(5.3x)
		9,385	⁽³⁾	Discounted cash flows (income approach)	Royalty Payment Discount Rate Minimum Payment Discount Rate Revenue Growth Rate	6.5% 4.5% 16.5%		- - -	11.5% 4.5% 25.7%		(9.0%) (4.5%) (21.1%)
		9,983		Market comparable companies (market approach)	Revenue Multiple	0.8x		-	1.2x		(1.0x)
		22,176		Recoverability	Collateral Value⁽⁴⁾	$	860,884	-	$	866,725	($863,805)
Second lien debt		8,151	⁽³⁾	Discounted cash flows (income approach)	Royalty Payment Discount Rate Minimum Payment Discount Rate Revenue Growth Rate	6.5% 4.5% 16.5%		- - -	11.5% 4.5% 25.7%		(9.0%) (4.5%) (21.1%)
		524		Market comparable companies (market approach)	Revenue Multiple	0.7x		-	1.2x		(0.9x)
		4,250		Recoverability	Collateral Value ⁽⁴⁾	$	51,710	-	$	57,460	($54,585)
Equity investments		649		Market comparable companies (market approach)	EBITDA Multiple	9.6x		-	10.6x		(10.1x)
		254		Market comparable companies (market approach)	Revenue Multiple	10.0x		-	11.0x		(10.5x)
Total Level 3 Investments	$	298,871

⁽¹⁾	Averages were determined using a weighted average based upon the fair value of the investments in each investment category.

⁽²⁾	Excluded from the presentation is $3,739 of first lien senior secured debt for which the Advisor did not develop the unobservable inputs for the determination of fair value.

⁽³⁾	Investment relates to the Company's remaining investment in OEM Group, Inc.

⁽⁴⁾	There are various, company specific inputs used in the valuation analysis that relate to the liquidation value of a company's assets. The significant unobservable input used in the valuation model was collateral value.

The two primary significant unobservable inputs used in the fair value measurement of the Company’s debt securities (first lien secured debt, second lien debt and subordinated debt), including income-producing investments in funds and income producing securities and payment rights, and excluding the Company’s investment in debt securities of OEM Group, Inc., is the weighted average cost of capital, or WACC, and the comparative yield. Significant increases (decreases) in the WACC or in the comparative yield in isolation would result in a significantly lower (higher) fair value measurement. In determining the WACC, for the income, or yield approach, the Company considers current market yields and multiples, portfolio company performance, leverage levels, credit quality, among other factors, including U.S. federal tax rates, in its analysis. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate WACC to use in the income approach. In determining the comparative yield, for the income, or yield approach, the Company considers current market yields and multiples, weighted average cost of capital, portfolio company performance, leverage levels, credit quality, among other factors, including U.S. federal tax rates, in its analysis.

The primary significant unobservable inputs used in the fair value measurement of the Company’s investment in asset-backed loans is the net realized value of the underlying collateral of the loan. The Company considers information provided by the borrower in its compliance certificates and information from third party appraisals, among other factors, in its analysis. Significant increases (decreases) in net realizable value of the underlying collateral would result in a significantly higher (lower) fair value measurement.

The primary significant unobservable inputs used in the fair value measurement of the Company’s investment in the first lien secured debt and second lien debt of OEM Group, Inc. are royalty payment discount rate, minimum payment discount rate, and revenue growth. Significant increases (decreases) in the royalty payment discount rate or minimum payment discount rate in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the revenue growth rates in isolation would result in a significantly higher (lower) fair value measurement. To determine royalty payments discount rate and minimum payment discount rates, the Company considers current cost of capital of the payor, expected term of investment and anticipated risk in the projections, among other factors. To determine revenue growth rates, the Company principally considers historical and current performance coupled with industry growth rates. The Company also considers current purchase orders and inflation rate adjustments that consider macroeconomic research, among other factors, in evaluating growth rates.

The primary significant unobservable input used in the fair value measurement of the Company’s equity investments, investments in warrants, debt investments where the Company has a controlling equity investment, and other debt investments using a market approach is the EBITDA multiple adjusted by management for differences between the investment and referenced comparables, or the multiple. Significant increases (decreases) in the multiple in isolation would result in a significantly higher (lower) fair value measurement. To determine the multiple for the market approach, the Company considers current market trading and/or transaction multiples, portfolio company performance (financial ratios) relative to public and private peer companies and leverage levels, among other factors. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate multiple to use in the market approach.

The following table rolls forward the changes in fair value during the three months ended March 31, 2022 for investments classified within Level 3:

	First lien senior secured debt			Second lien debt			Subordinated debt		Equity investments			Totals
Beginning balance, January 1, 2022	$	288,782		$	12,925		$	-	$	903		$	302,610
Purchases		19,482			-			-		-			19,482
Sales and repayments ⁽¹⁾		(1,664	)		(1,498	)		-		(48	)		(3,210	)
Unrealized appreciation (depreciation)⁽²⁾		(5,026	)		(4	)		-		(184	)		(5,214	)
Realized gain		3			-			-		48			51
Net amortization of premiums, discounts and fees		214			3			-		-			217
PIK		54			-			-		-			54
Ending balance, March 31, 2022	$	301,845		$	11,426		$	-	$	719		$	313,990
Net change in unrealized appreciation (depreciation) from investments still held as of the reporting date	$	(5,026	)	$	(8	)	$	-	$	(184	)	$	(5,218	)

⁽¹⁾	Includes reorganizations and restructuring of investments.

⁽²⁾	All unrealized appreciation (depreciation) in the table above is reflected in the accompanying Consolidated Statements of Operations.

The following table rolls forward the changes in fair value during the three months ended March 31, 2021 for investments classified within Level 3:

	First lien senior secured debt			Second lien debt		Subordinated debt			Equity investments			Totals
Beginning balance, January 1, 2021	$	233,636		$	22,111	$	5,841		$	5,070		$	266,658
Purchases		17,913			-		-			-			17,913
Sales and repayments⁽¹⁾		(8,552	)		-		-			-			(8,552	)
Unrealized appreciation (depreciation)⁽²⁾		1,868			213		(1	)		4,208			6,288
Realized (loss) gain		-			-		-			(1,888	)		(1,888	)
Net amortization of premiums, discounts and fees		290			10		-			-			300
PIK		55			32		45			-			132
Ending balance, March 31, 2021	$	245,210		$	22,366	$	5,885		$	7,390		$	280,851

Net change in unrealized appreciation (depreciation) from investments still held as of the reporting date	$	1,904		$	214	$	(1	)	$	4,209		$	6,326

⁽¹⁾	Includes reorganizations and restructuring of investments.

⁽²⁾	All unrealized appreciation (depreciation) in the table above is reflected in the accompanying Consolidated Statements of Operations.

There were no transfers between the levels or categories of the fair value hierarchy during the three months ended March 31, 2022 and 2021.

Significant Unconsolidated Subsidiaries

In accordance with the SEC’s Regulation S-X and GAAP, the Company is not permitted to consolidate any subsidiary or other entity that is not an investment company or a controlled operating company whose business consists of providing services to the Company, including those in which the Company has a controlling interest. The Company had certain unconsolidated subsidiaries for the three months ended March 31, 2022 and 2021 that met at least one of the significance conditions under the SEC’s Regulation S-X. Accordingly, pursuant to Rule 4-08 of Regulation S-X, summarized, comparative financial information is presented below for the Company’s significant unconsolidated subsidiaries, which include Loadmaster Derrick & Equipment, Inc., OEM Group, LLC, and First Eagle Logan JV, LLC for the three months ended March 31, 2022, and C&K Market, Inc., Loadmaster Derrick & Equipment, Inc., OEM Group, LLC, and First Eagle Logan JV, LLC for the three months ended March 31, 2021. The below table summarizes the above mentioned financial data, with the exception of OEM Group, LLC, which is presented in a separate tabular disclosure further below.

	For the three months ended March 31,
	2022		2021
Net sales	$	6,783	$	3,530
Gross profit		3,066		2,037
Net gain		430		1,960

The below table summarizes the financial information for OEM Group, LLC for the three months ended March 31, 2022 and 2021.

	For the three months ended March 31,
Income Statement	2022			2021
Net loss from continuing operations	$	(2,797	)	$	(2,983	)
Loss (gain) from discontinued operations		-			(143	)

In December 2020, OEM Group, LLC completed the sale of all of its principal business operations via two transactions. On December 2, 2020, OEM closed on the sale of certain assets and liabilities of its Arizona based division to Plasma Therm LLC.

Plasma Therm will be responsible for developing, commercializing, and marketing the newly developed Endeavor M series PVD platform with no further investment required by OEM. OEM is entitled to a series of deferred royalty payments over seven years associated with the sale of its business operations, which are based on the future revenues associated with Plasma Therm’s product and other systems and services sales. OEM will receive minimum annual payments for the first four years that will be used to cover certain residual operating costs and service the outstanding debt. These future royalty streams will be used to cover principal and interest on OEM’s outstanding debt. OEM also consummated the sale of certain assets and liability of its Pennsylvania based division to a minority shareholder of the Company. There was no cash consideration exchanged in connection with the transaction. As of March 31, 2022, the Company holds all outstanding debt and equity of OEM.

Under GAAP, the financial results of the two disposed businesses are reported separately from continuing operations under the line item “Gain from discontinued operations”, “Net sales”, “Gross profit”, and “Net loss from continuing operations” represents the financial operations of the continuing entity, which excludes the results of the two discontinued businesses. These amounts represent primarily general and administrative expenses and interest expense of the continuing entity. In future years, the royalty payments received by OEM will be reflected in “Net sales” and “Gross profit” in their financial results.

First Eagle Logan JV, LLC

On December 3, 2014, the Company entered into an agreement with Perspecta Trident LLC, an affiliate of Perspecta Trust LLC, or Perspecta, to create First Eagle Logan JV, LLC, or Logan JV, a joint venture, which invests primarily in senior secured first lien term loans. All Logan JV investment decisions must be unanimously approved by the Logan JV investment committee consisting of one representative from each of the Company and Perspecta.

The Company has determined that Logan JV is an investment company under ASC 946, however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a wholly owned investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company does not consolidate its non-controlling interest in Logan JV.

Logan JV is capitalized with capital contributions which are generally called from its members, on a pro-rata basis based on their capital commitments, as transactions are completed. Any decision by the Logan JV to call down on capital commitments requires the explicit authorization of the Company, coupled with that of Perspecta, and the Company may withhold such authorization for any reason in its sole discretion.

As of March 31, 2022 and December 31, 2021, Logan JV had the following commitments, contributions and unfunded commitments from its Members.

	As of March 31, 2022
Member	Total Commitments		Contributed Capital		Return of Capital (not recallable)		Unfunded Commitments
First Eagle Alternative Capital BDC, Inc.	$	110,000	$	92,600	$	8,000	$	9,400
Perspecta Trident LLC		27,500		23,150		2,000		2,350
Total Investments	$	137,500	$	115,750	$	10,000	$	11,750

	As of December 31, 2021
Member	Total Commitments		Contributed Capital		Return of Capital (not recallable)		Unfunded Commitments
First Eagle Alternative Capital BDC, Inc.	$	110,000	$	92,600	$	8,000	$	9,400
Perspecta Trident LLC		27,500		23,150		2,000		2,350
Total Investments	$	137,500	$	115,750	$	10,000	$	11,750

Logan JV has a senior credit facility, or the Logan JV Credit Facility, with Deutsche Bank AG and other banks which was amended on January 9, 2021 to reduce the commitments, extend the maturity date, and amend the pricing. As of March 31, 2022, the Logan JV Credit Facility had $225,000 of commitments subject to leverage and borrowing base restrictions with an interest rate of three months LIBOR (with no LIBOR floor) plus 2.50%. As of December 31, 2021, the Logan JV Credit Facility had $225,000 of commitments subject to leverage and borrowing base restrictions with an interest rate of three month LIBOR (with no LIBOR floor) plus 2.5%. The final maturity date of the Logan JV Credit Facility is July 12, 2025. As of March 31, 2022 and December 31, 2021, Logan JV had $164,041 and $147,041 of outstanding borrowings under the credit facility, respectively. At March 31, 2022, the effective interest rate on the Logan JV Credit Facility was 2.88% per annum. On April 19, 2022, Logan JV repaid the Logan JV Credit Facility in full and terminated the facility. See Note 12 – Subsequent Events for additional information.

As of March 31, 2022 and December 31, 2021, Logan JV had total investments at fair value of $276,889 and $224,449, respectively. As of March 31, 2022 and December 31, 2021, Logan JV’s portfolio was comprised of senior secured first lien loans and second lien loans to 114 and 95 different borrowers, respectively. As of March 31, 2022, the amortized cost and fair value of loans on non-accrual status was $1,508 and $189, respectively. As of December 31, 2021, the amortized cost and fair value of loans on non-accrual status was $1,674 and $94, respectively. As of March 31, 2022 and December 31, 2021, Logan JV had unfunded commitments to fund revolver and delayed draw loans to its portfolio companies totaling $3,870 and $2,523, respectively. The portfolio companies in Logan JV are in industries similar to those in which the Company may invest directly.

Below is a summary of Logan JV’s portfolio, followed by a listing of the individual loans in Logan JV’s portfolio as of March 31, 2022 and December 31, 2021:


	As of March 31, 2022			As of December 31, 2021
First lien secured debt, at par	$	284,245		$	231,727
Second lien debt, at par		2,282			2,282
Total debt investments, at par	$	286,527		$	234,009
Weighted average yield on first lien secured loans ⁽¹⁾		5.5	%		5.5	%
Weighted average yield on second lien loans⁽¹⁾		8.7	%		8.5	%
Weighted average yield on all loans⁽¹⁾		5.5	%		5.5	%
Number of borrowers in Logan JV		114			95
Largest loan to a single borrower ⁽²⁾	$	5,000		$	5,000
Total of five largest loans to borrowers ⁽²⁾	$	22,773		$	22,801

⁽¹⁾	Weighted average yield at their current amortized cost.

⁽²⁾	At current principal amount.

The weighted average yield of Logan JV’s debt investments is not the same as a return on Logan JV investment for the Company’s stockholders but, rather, relates to a portion of the Company’s investment portfolio and is calculated before the payment of the Company’s expenses. The weighted average yield was computed using the effective interest rates as of March 31, 2022 and December 31, 2021, respectively. There can be no assurance that the weighted average yield will remain at its current level.

For the three months ended March 31, 2022 and 2021, the Company’s share of distributions related to its Logan JV LLC equity interest was $1,680 and $1,583, respectively, which amounts are included in dividend income from controlled investments in the Consolidated Statement of Operations and reduction of cost basis on the Consolidated Statements of Assets and Liabilities. As of March 31, 2022 and December 31, 2021, $2,520 and $2,254, respectively, of income related to the Logan JV was included in interest, dividends and fees receivable on the Consolidated Statements of Assets and Liabilities. As of March 31, 2022 and December 31, 2021, $0 and $66, respectively, of return of capital associated with distributions declared was included in Prepaid expenses and other assets on the Consolidated Statements of Assets and Liabilities.

Logan JV Loan Portfolio as of March 31, 2022

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹²⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost		Fair Value ⁽²⁾
Senior Secured First Lien Term Loans
Australia
Ticketek Pty Ltd	Services: Consumer	5% (LIBOR +4.25%)	11/22/2019	11/26/2026		1,470	$	1,460	$	1,432
Total Australia							$	1,460	$	1,432

Canada
Avison Young Canada Inc.	Services: Business	6.21% (LIBOR +5.75%)	03/07/2019	01/31/2026		3,874	$	3,830	$	3,860
Bausch Health Companies ⁽¹³⁾	Healthcare & Pharmaceuticals	5.75% (SOFR +5.25%)	03/16/2022	01/27/2027		2,000		1,965		1,984
PNI Canada Acquireco Corp	High Tech Industries	4.96% (LIBOR +4.5%)	10/31/2018	10/31/2025		-		1,593		1,581
WildBrain Ltd.	Media: Diversified & Production	5% (LIBOR +4.25%)	03/19/2021	03/24/2028		-		1,946		1,968
Total Canada							$	9,334	$	9,393

Germany
VAC Germany Holding GmbH	Metals & Mining	5.01% (LIBOR +4%)	02/26/2018	03/08/2025		2,880	$	2,874	$	2,768
Total Germany							$	2,874	$	2,768

Luxembourg
Travelport Finance	Services: Consumer	2.51% (LIBOR +1.5%)	09/22/2020	02/28/2025		2,224	$	2,108	$	2,312
Travelport Finance	Services: Consumer	6.01% (LIBOR +5%)	09/22/2020	05/29/2026		1,748		1,727		1,558
Total Luxembourg							$	3,835	$	3,870

United Kingdom
Auxey Bidco Ltd.	Services: Consumer	5.46% (LIBOR +5%)	08/07/2018	06/16/2025		5,000	$	4,904	$	4,870
EG Group	Retail	5% (LIBOR +4%)	03/23/2018	02/07/2025		2,752		2,746		2,715
Total United Kingdom							$	7,650	$	7,585

United States of America
A Place for Mom Inc	Media: Advertising, Printing & Publishing	5.5% (LIBOR +4.5%)	07/28/2017	02/10/2026		3,268	$	3,260	$	3,136
Advanced Integration Technology LP	Aerospace & Defense	5.75% (LIBOR +4.75%)	07/15/2016	04/03/2023		1,891	$	1,886	$	1,798
Advisor Group Holdings Inc	Fire: Finance	4.96% (LIBOR +4.5%)	02/05/2021	07/31/2026		3,142	$	3,149	$	3,132
AG Parent Holdings LLC	High Tech Industries	5.46% (LIBOR +5%)	07/30/2019	07/31/2026		2,607	$	2,591	$	2,568
AgroFresh Inc.	Chemicals, Plastics & Rubber	7.25% (LIBOR +6.25%)	12/01/2015	12/31/2024		1,235	$	1,234	$	1,236
Alcami Carolinas Corp	Healthcare & Pharmaceuticals	4.71% (LIBOR +4.25%)	07/09/2018	07/12/2025		3,860	$	3,851	$	3,589
Alchemy US Holdco 1 LLC	Chemicals, Plastics & Rubber	5.96% (LIBOR +5.5%)	10/01/2018	10/10/2025		1,655	$	1,642	$	1,648
Allen Media, LLC	Media: Broadcasting & Subscription	6.3% (LIBOR +5.5%)	07/29/2021	02/10/2027		3,436	$	3,416	$	3,413
Alpine US Bidco LLC	Beverage, Food & Tobacco	6% (LIBOR +5.25%)	04/28/2021	04/13/2028		1,500	$	1,474	$	1,466
Alvogen Pharma US, Inc.	Healthcare & Pharmaceuticals	6.26% (LIBOR +5.25%)	09/02/2021	12/31/2023		3,107	$	3,024	$	2,915
AMCP Clean Acquisition Co LLC	Wholesale	4.71% (LIBOR +4.25%)	07/10/2018	06/15/2025		2,329	$	2,323	$	1,902
AMCP Clean Acquisition Co LLC	Wholesale	4.71% (LIBOR +4.25%)	07/10/2018	06/15/2025		564	$	562	$	460
American Achievement Corporation ⁽³⁾	Retail	0.75% (LIBOR +6.25%)	02/11/2021	09/30/2026		1,470	$	-	$	-
American Public Education	Services: Consumer	6.25% (LIBOR +5.5%)	03/29/2021	03/29/2027		975	$	957	$	968
ANI Pharmaceuticals, Inc.	Healthcare & Pharmaceuticals	6.75% (LIBOR +6%)	05/24/2021	11/19/2027		3,192	$	3,139	$	3,192
Anne Arundel Dermatology Management, LLC	Healthcare & Pharmaceuticals	6.01% (LIBOR +5%)	10/12/2020	10/16/2025		3,274	$	3,211	$	3,220
Ansira Holdings, Inc.	Media: Diversified & Production	7.51% (LIBOR +6.5%)	04/17/2018	12/20/2024		693	$	680	$	524

Logan JV Loan Portfolio as of March 31, 2022

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹²⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost			Fair Value ⁽²⁾
Ansira Holdings, Inc.	Media: Diversified & Production	7.51% (LIBOR +6.5%)	12/20/2016	12/20/2024		2,081	$	2,088		$	1,581
Anthology	High Tech Industries	5.75% (LIBOR +5.25%)	10/22/2021	10/25/2028		2,993	$	2,880		$	2,912
Arcline FM Holding, LLC	Aerospace & Defense	5.5% (LIBOR +4.75%)	09/02/2021	06/23/2028		1,990	$	1,981		$	1,968
Ascend Performance Materials Operations LLC	Chemicals, Plastics & Rubber	5.76% (LIBOR +4.75%)	08/16/2019	08/27/2026		860	$	849		$	859
Avis Budget Car Rental, LLC	Transportation: Consumer	4% (SOFR +3.5%)	03/15/2022	03/16/2029		3,000	$	2,916		$	2,983
Axiom Global Inc.	Services: Business	5.5% (LIBOR +4.75%)	09/25/2019	10/01/2026		2,985	$	2,958		$	2,918
BCP Qualtek Merger Sub LLC	Telecommunications	7.25% (LIBOR +6.25%)	07/16/2018	07/18/2025		3,650	$	3,615		$	3,541
BCP Renaissance Parent LLC	Energy: Oil & Gas	4.5% (SOFR +3.5%)	02/14/2022	11/02/2026		1,995	$	1,985		$	1,972
Belfor Holdings Inc ⁽¹³⁾	Services: Business	5.21% (LIBOR +4.25%)	03/15/2022	04/04/2026		1,500	$	1,455		$	1,500
Brand Energy & Infrastructure Services, Inc.	Energy: Oil & Gas	5.26% (LIBOR +4.25%)	06/16/2017	06/21/2024		2,858	$	2,848		$	2,737
Canister International Group Inc	Forest Products & Paper	5.21% (LIBOR +4.75%)	12/18/2019	12/21/2026		1,960	$	1,947		$	1,953
Cano Health, LLC ⁽¹³⁾	Healthcare & Pharmaceuticals	4.06% (SOFR +4%)	06/24/2021	11/23/2027		1,980	$	1,976		$	1,954
CCI Buyer, Inc.	Services: Business	4.75% (SOFR +4%)	02/24/2022	12/17/2027		1,995	$	1,971		$	1,972
Clear Balance Holdings, LLC	Fire: Finance	6.76% (LIBOR +5.75%)	07/07/2015	10/05/2023		4,517	$	4,512		$	4,292
Cloudera, Inc.	High Tech Industries	4.25% (LIBOR +3.75%)	08/10/2021	10/08/2028		3,000	$	2,972		$	2,968
CMI Marketing, Inc	Media: Advertising, Printing & Publishing	4.75% (LIBOR +4.25%)	03/19/2021	03/23/2028		1,985	$	1,997		$	1,980
Confluence Technologies, Inc.	High Tech Industries	4.25% (LIBOR +3.75%)	07/22/2021	07/31/2028		2,993	$	2,979		$	2,959
Conyers Park Parent Merger Sub Inc	Beverage, Food & Tobacco	4.4% (SOFR +3.4%)	06/21/2017	07/07/2024		1,287	$	1,285		$	1,283
Dermatology Intermediate Holdings III, Inc ⁽¹³⁾	Healthcare & Pharmaceuticals	4.75% (SOFR +4.25%)	03/23/2022	03/23/2029		315	$	315		$	312
Dermatology Intermediate Holdings III, Inc ⁽¹³⁾	Healthcare & Pharmaceuticals	4.75% (SOFR +4.25%)	03/23/2022	03/23/2029		1,685	$	1,651		$	1,668
Drilling Info Inc.	High Tech Industries	4.71% (LIBOR +4.25%)	07/27/2018	07/30/2025		4,342	$	4,332		$	4,296
Eisner Advisory Group LLC	Banking, Finance, Insurance & Real Estate	6% (LIBOR +5.25%)	08/16/2021	08/13/2028		1,990	$	1,973		$	1,983
Eliassen Group, LLC⁽¹³⁾	Services: Business	0.96% (LIBOR +0%)	03/31/2022	03/31/2028		400	$	365		$	394
Eliassen Group, LLC ⁽¹³⁾	Services: Business	0.96% (LIBOR +0%)	03/31/2022	03/31/2028		1,600	$	1,605		$	1,576
Eliassen Group, LLC	Services: Business	4.71% (LIBOR +4.25%)	10/19/2018	11/05/2024		4,591	$	4,581		$	4,546
Empower Payments Acquisition	Services: Business	5.26% (LIBOR +4.25%)	10/05/2018	10/10/2025		3,870	$	3,865		$	3,823
EyeSouth ^{(4) (12)}	Healthcare & Pharmaceuticals	5.46% (LIBOR +4.5%)	03/15/2021	03/21/2028		295	$	(1	)	$	(3	)
EyeSouth	Healthcare & Pharmaceuticals	6% (LIBOR +4.5%)	03/15/2021	03/12/2028		1,692	$	1,688		$	1,673
FloWorks International LLC	Metals & Mining	6.08% (SOFR +5.75%)	02/18/2022	12/27/2028		2,500	$	2,475		$	2,481
Foley Products Co LLC	Construction & Building	5.25% (SOFR +4.75%)	02/11/2022	02/10/2029		3,000	$	2,971		$	2,985
Gastro Health Holdco, LLC	Healthcare & Pharmaceuticals	5.51% (LIBOR +4.5%)	07/02/2021	07/03/2028		332	$	330		$	330
Gastro Health Holdco, LLC	Healthcare & Pharmaceuticals	5.51% (LIBOR +4.5%)	07/02/2021	07/03/2028		995	$	990		$	989
Global Medical Response, Inc. ⁽¹³⁾	Healthcare & Pharmaceuticals	5.25% (LIBOR +4.25%)	03/16/2022	10/02/2025		1,995	$	1,938		$	1,985
Gold Standard Baking, Inc. ⁽¹⁵⁾	Wholesale	9% (3.5% +5.5%)	05/19/2015	07/23/2022		2,069	$	1,508		$	189
Golden West Packaging Group LLC	Containers, Packaging & Glass	6% (LIBOR +5.25%)	11/29/2021	12/01/2027		2,000	$	1,981		$	1,950
HDT Holdco, Inc.	Aerospace & Defense	6.76% (LIBOR +5.75%)	06/30/2021	07/08/2027		3,850	$	3,761		$	3,749
HEXION INC	Chemicals, Plastics & Rubber	4.83% (SOFR +4.5%)	03/02/2022	03/01/2029		2,000	$	1,950		$	1,960
Highline Aftermarket Acquisition, LLC ⁽¹³⁾	Retail	4.5% (LIBOR +4.5%)	03/21/2022	11/09/2027		941	$	889		$	904
Hoffman Southwest Corporation	Environmental Industries	6.5% (LIBOR +5.5%)	05/16/2019	08/14/2023		1,344	$	1,340		$	1,310
Hornblower Sub LLC	Hotel, Gaming & Leisure	5.5% (LIBOR +4.5%)	03/08/2019	04/28/2025		1,766	$	1,552		$	1,588
Imprivata Inc ⁽¹³⁾	High Tech Industries	4.75% (SOFR +4.25%)	03/16/2022	12/01/2027		2,000	$	1,940		$	1,996
International Textile Group Inc	Consumer goods: Durable	5.21% (LIBOR +5%)	04/20/2018	05/01/2024		906	$	905		$	839
Isagenix International LLC	Services: Consumer	6.75% (LIBOR +5.75%)	04/26/2018	06/14/2025		1,572	$	1,565		$	1,015
LaserShip, Inc.	Transportation: Cargo	5.25% (LIBOR +4.5%)	10/20/2021	04/30/2028		995	$	990		$	992
Lereta, LLC	Fire: Real Estate	6% (LIBOR +5.25%)	07/27/2021	07/27/2028		1,990	$	1,972		$	1,994

Logan JV Loan Portfolio as of March 31, 2022

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹²⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost			Fair Value ⁽²⁾
Lids Holdings, Inc	Retail	5.8% (SOFR +5.5%)	12/03/2021	12/14/2026		969	$	950		$	949
Lifescan Global Corporation	Healthcare & Pharmaceuticals	6.21% (LIBOR +6%)	06/19/2018	10/01/2024		3,652	$	3,591		$	3,497
Liquid Tech Solutions Holdings, LLC	Transportation: Cargo	5.75% (LIBOR +4.75%)	03/18/2021	03/11/2028		2,980	$	2,967		$	2,973
LRS Holdings LLC	Environmental Industries	4.75% (LIBOR +4.25%)	08/13/2021	08/31/2028		2,494	$	2,482		$	2,481
MAG DS Corp.	Aerospace & Defense	6.51% (LIBOR +5.5%)	09/21/2020	04/01/2027		1,167	$	1,122		$	1,062
McAfee Enterprise	High Tech Industries	5.75% (LIBOR +5%)	05/03/2021	07/27/2028		2,991	$	2,964		$	2,973
Miller's Ale House Inc	Hotel, Gaming & Leisure	5.2% (LIBOR +4.75%)	05/24/2018	05/21/2025		2,310	$	2,305		$	2,277
MRI SOFTWARE LLC	Construction & Building	6.51% (LIBOR +5.5%)	01/31/2020	02/10/2026		1,471	$	1,467		$	1,466
NAC Holding Corporation	Fire: Insurance	6.26% (LIBOR +5.25%)	10/02/2020	09/28/2024		3,826	$	3,778		$	3,826
NAPA Management Services Corp	Healthcare & Pharmaceuticals	6.25% (SOFR +5.25%)	02/18/2022	02/23/2029		3,000	$	2,973		$	2,968
New Constellis Borrower LLC	Aerospace & Defense	8.5% (LIBOR +7.5%)	03/27/2020	03/27/2024		331	$	318		$	294
New Insight Holdings Inc	Services: Business	6.5% (LIBOR +5.5%)	12/08/2017	12/20/2024		1,915	$	1,878		$	1,886
NextCare, Inc. ⁽⁵⁾	Healthcare & Pharmaceuticals	5.5% (LIBOR +4.5%)	02/13/2018	06/30/2024		629	$	183		$	182
NextCare, Inc.	Healthcare & Pharmaceuticals	5.5% (LIBOR +4.5%)	02/13/2018	06/30/2024		3,730	$	3,717		$	3,712
Northern Star Holdings Inc.	Utilities: Electric	5.51% (LIBOR +4.5%)	03/28/2018	03/28/2025		4,080	$	4,071		$	4,060
Oak Point Partners, LLC	Banking, Finance, Insurance & Real Estate	6.5% (LIBOR +5.5%)	12/01/2021	12/01/2027		2,843	$	2,803		$	2,800
Odyssey Logistics & Technology Corporation	Transportation: Cargo	5% (LIBOR +4%)	10/06/2017	10/12/2024		1,913	$	1,909		$	1,879
Omni Intermediate Holdings, LLC ⁽⁶⁾	Transportation: Cargo	6% (LIBOR +5%)	11/24/2021	12/30/2026		193	$	80		$	80
Omni Intermediate Holdings, LLC	Transportation: Cargo	6.01% (LIBOR +5%)	11/24/2021	12/30/2026		1,798	$	1,783		$	1,785
Options Technology ^{(7) (12)}	Services: Business	5.71% (LIBOR +4.75%)	10/29/2021	12/26/2025		606	$	(3	)	$	-
Options Technology	Services: Business	5.75% (LIBOR +4.75%)	10/29/2021	12/27/2025		2,446	$	2,419		$	2,446
Orion Business Innovations	High Tech Industries	5.51% (LIBOR +4.5%)	10/18/2018	10/21/2024		548	$	545		$	548
Orion Business Innovations	High Tech Industries	5.51% (LIBOR +4.5%)	03/04/2019	10/21/2024		808	$	805		$	808
Orion Business Innovations	High Tech Industries	5.51% (LIBOR +4.5%)	10/18/2018	10/21/2024		1,873	$	1,865		$	1,873
Osmosis Buyer Limited ⁽¹³⁾	Services: Consumer	4.5% (SOFR +4%)	03/21/2022	07/31/2028		2,000	$	1,970		$	1,984
Output Services Group Inc	Services: Business	5.5% (LIBOR +4.5%)	03/26/2018	03/27/2024		4,322	$	4,315		$	3,381
OVG Business Services, LLC	Services: Business	7.25% (LIBOR +6.25%)	10/15/2021	11/20/2028		2,500	$	2,476		$	2,425
Patriot Rail Co LLC	Transportation: Cargo	5.01% (LIBOR +4%)	02/24/2021	10/19/2026		3,430	$	3,453		$	3,432
PH Beauty Holdings III, Inc.	Containers, Packaging & Glass	5.51% (LIBOR +5%)	10/04/2018	09/28/2025		2,895	$	2,880		$	2,736
PLH Group Inc	Energy: Oil & Gas	6.39% (LIBOR +6%)	08/01/2018	07/25/2023		3,318	$	3,296		$	3,281
Portfolio Holding, Inc.	Banking, Finance, Insurance & Real Estate	7.01% (LIBOR +6%)	05/14/2021	12/02/2025		1,985	$	1,953		$	1,985
Portfolio Holding, Inc. ⁽⁸⁾	Banking, Finance, Insurance & Real Estate	7% (LIBOR +6%)	11/15/2021	12/02/2025		417	$	221		$	225
Portfolio Holding, Inc.	Banking, Finance, Insurance & Real Estate	7% (LIBOR +6%)	11/15/2021	12/02/2025		623	$	612		$	623
Portillo's Holdings, LLC	Beverage, Food & Tobacco	6.5% (LIBOR +5.5%)	11/27/2019	09/06/2024		1,950	$	1,940		$	1,948
Precisely	High Tech Industries	4.75% (LIBOR +4%)	06/24/2021	04/24/2028		2,987	$	2,961		$	2,961
Premier Dental Services, Inc. ⁽⁹⁾	Healthcare & Pharmaceuticals	5.3% (LIBOR +4.5%)	08/11/2021	08/18/2028		185	$	104		$	105
Premier Dental Services, Inc.	Healthcare & Pharmaceuticals	5.28% (LIBOR +4.5%)	08/11/2021	08/18/2028		1,810	$	1,802		$	1,805
Pure Fishing Inc	Consumer goods: Non-Durable	4.96% (LIBOR +4.5%)	12/20/2018	12/22/2025		1,164	$	1,139		$	1,109
Quest Software ⁽¹³⁾	High Tech Industries	4.75% (SOFR +4.25%)	03/21/2022	02/01/2029		2,000	$	1,970		$	1,973
Quidditch Acquisition Inc	Beverage, Food & Tobacco	8% (LIBOR +7%)	03/16/2018	03/21/2025		980	$	972		$	956
Red Ventures, LLC	Media: Advertising, Printing & Publishing	2.96% (LIBOR +2.5%)	10/18/2017	11/08/2024		1,972	$	1,965		$	1,952
Reedy Industries Inc.^(11)(12)	Services: Consumer	5.46% (LIBOR +4.5%)	08/24/2021	08/31/2028		299	$	(1	)	$	(2	)
Reedy Industries Inc.	Services: Consumer	5.25% (LIBOR +4.5%)	08/24/2021	08/31/2028		1,697	$	1,689		$	1,684
Restaurant Technologies, Inc. ⁽¹³⁾	Services: Business	4.75% (SOFR +4.25%)	03/17/2022	03/17/2029		2,000	$	1,950		$	1,988
Rocket Software, Inc.	High Tech Industries	4.25% (LIBOR +4.25%)	03/16/2022	11/28/2025		1,995	$	1,965		$	1,973

Logan JV Loan Portfolio as of March 31, 2022

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹²⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost			Fair Value ⁽²⁾
R-Pac International Corp ⁽¹⁰⁾	Containers, Packaging & Glass	6.75% (LIBOR +6%)	11/23/2021	12/29/2027		373	$	(7	)	$	(7	)
R-Pac International Corp	Containers, Packaging & Glass	6.75% (LIBOR +6%)	11/23/2021	12/29/2027		3,000	$	2,943		$	2,940
RSA Security LLC	High Tech Industries	5.5% (LIBOR +4.75%)	04/16/2021	04/27/2028		1,990	$	1,978		$	1,950
RXB Holdings, Inc.	Services: Business	5.25% (LIBOR +4.5%)	07/28/2021	12/20/2027		1,985	$	1,980		$	1,978
Skillsoft Corp.	High Tech Industries	4.75% (LIBOR +4.75%)	03/25/2022	07/14/2028		2,000	$	1,965		$	1,983
Smyrna Ready Mix Concrete LLC⁽¹³⁾	Hotel, Gaming & Leisure	4.5% (SOFR +4%)	03/24/2022	03/23/2029		2,000	$	1,940		$	1,978
Solenis International LP⁽¹³⁾	Chemicals, Plastics & Rubber	5.3% (SOFR +4.5%)	03/31/2022	11/09/2028		2,000	$	1,960		$	1,975
Solera Holdings Inc	Services: Business	4.5% (LIBOR +4%)	03/16/2022	06/02/2028		1,995	$	1,965		$	1,983
SPX FLOW INC⁽¹³⁾	Capital Equipment	5% (SOFR +4.5%)	03/18/2022	03/17/2029		2,000	$	1,930		$	1,951
Stats, LLC ⁽¹³⁾	Hotel, Gaming & Leisure	6.21% (LIBOR +5.25%)	03/30/2022	07/10/2026		1,995	$	1,995		$	1,985
StubHub	High Tech Industries	4.75% (LIBOR +4.25%)	07/21/2021	02/12/2027		1,493	$	1,486		$	1,487
Teneo Holdings LLC	Services: Business	6.25% (SOFR +5.25%)	07/15/2019	07/11/2025		3,984	$	3,928		$	3,957
Titan Sub LLC	Aerospace & Defense	5.46% (LIBOR +5%)	09/19/2019	09/21/2026		3,184	$	3,161		$	3,183
Upstream Newco, Inc.	Healthcare & Pharmaceuticals	4.59% (LIBOR +4.25%)	07/22/2021	11/20/2026		3,867	$	3,857		$	3,851
VeriFone Systems, Inc.⁽¹³⁾	Services: Business	4.96% (LIBOR +4%)	03/16/2022	08/20/2025		2,000	$	1,938		$	1,975
W3 Topco LLC	Energy: Oil & Gas	7.1% (LIBOR +6%)	08/13/2019	08/16/2025		1,328	$	1,276		$	1,296
Yak Access LLC	Energy: Oil & Gas	5.51% (LIBOR +5%)	06/29/2018	07/11/2025		2,550	$	2,514		$	2,272
Zenith American Holding, Inc.	Services: Business	6.26% (LIBOR +5.25%)	03/11/2019	12/13/2024		2,466	$	2,463		$	2,466
Zenith American Holding, Inc.	Services: Business	6.25% (LIBOR +5.25%)	03/11/2019	12/13/2024		123	$	122		$	123
Total United States of America							$	255,042		$	249,698

Total Senior Secured First Lien Term Loans							$	280,195		$	274,746

Second Lien Term Loans
United States of America
ASP MSG Acquisition Co Inc	Beverage, Food & Tobacco	8.51% (LIBOR +7.5%)	06/23/2021	08/16/2025		2,000	$	1,976		$	2,010
New Constellis Borrower LLC	Aerospace & Defense	12% (LIBOR +11%)	03/27/2020	03/27/2025		282		133			133
Total United States of America							$	2,109		$	2,143

Total Second Lien Term Loans							$	2,109		$	2,143

Total Investments							$	282,304		$	276,889


Cash equivalents
Dreyfus Government Cash Management Fund								15,114			15,114
Other cash accounts								579			579
Total Cash equivalents							$	15,693		$	15,693

⁽¹⁾	Variable interest rates indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option. LIBOR rates are subject to interest rate floors.
⁽²⁾	Represents fair value in accordance with ASC Topic 820.
⁽³⁾	Represents a revolver commitment of $1,469,807, which was unfunded as of March 31, 2022. Issuer pays 0.75% unfunded commitment fee on revolver term loan and/or revolving loan facilities.

Logan JV Loan Portfolio as of March 31, 2022

(dollar amounts in thousands)

⁽⁴⁾	Represents a delayed draw commitment of $295,455 which was unfunded as of March 31, 2022. Issuer pays 4.50% unfunded commitment fee on revolver term loan and/or revolving loan facilities.
⁽⁵⁾	Represents a delayed draw commitment of $628,795, of which $443,545 was unfunded as of March 31, 2022. Unfunded amounts of a delayed draw position have a rate than the contractual fully funded rate. Issuer pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁶⁾	Represents a delayed draw commitment of $192,893, of which $111,675 was unfunded as of March 31, 2022. Unfunded amounts of a delayed draw position have a have a rate than the contractual fully funded rate. Issuer pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁷⁾	Represents a delayed draw commitment of $605,958, which was unfunded as of March 31, 2022. Issuer pays 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁸⁾	Represents a delayed draw commitment of $416,667, of which $191,667 was unfunded as of March 31, 2022. Unfunded amounts of a delayed draw position have a rate than the contractual fully funded rate. Issuer pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁹⁾	Represents a delayed draw commitment of $184,921, of which $79,630 was unfunded as of March 31, 2022. Unfunded amounts of a delayed draw position have a rate than the contractual fully funded rate. Issuer pays 4.50% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽¹⁰⁾	Represents a delayed draw commitment of $373,134, which was unfunded as of March 31, 2022. Issuer pays 0.5% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽¹¹⁾	Represents a delayed draw commitment of $299,252, which was unfunded as of March 31, 2022. Issuer pays 4.5% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽¹²⁾	Unfunded amount will start to accrue interest when the position is funded. 3 month LIBOR as of March 31, 2022 or LIBOR floor is shown to reflect possible projected interest rate.
⁽¹³⁾	Unsettled trade will start to accrue interest when the position is settled. 3 month LIBOR as of March 31, 2022 or LIBOR floor is shown to reflect possible projected interest rate.
⁽¹⁴⁾	All investments are pledged as collateral for loans payable unless otherwise noted.
⁽¹⁵⁾	Loan was on non-accrual as of March 31, 2022.

Logan JV Loan Portfolio as of December 31, 2021

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹²⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost		Fair Value ⁽²⁾
Senior Secured First Lien Term Loans
Australia
Ticketek Pty Ltd	Services: Consumer	5% (LIBOR +4.25%)	11/22/2019	11/26/2026		1,474	$	1,463	$	1,432
Total Australia							$	1,463	$	1,432

Canada
Avison Young Canada Inc.	Services: Business	5.97% (LIBOR +5.75%)	03/07/2019	01/31/2026		3,884	$	3,836	$	3,863
PNI Canada Acquireco Corp	High Tech Industries	4.6% (LIBOR +4.5%)	10/31/2018	10/31/2025		1,597		1,593		1,596
WildBrain Ltd.	Media: Diversified & Production	5% (LIBOR +4.25%)	03/19/2021	03/24/2028		-		1,950		1,983
Total Canada							$	7,379	$	7,442

Germany
Rhodia Acetow	Consumer goods: Non-Durable	6.5% (LIBOR +5.5%)	04/21/2017	05/31/2023		955	$	952	$	895
VAC Germany Holding GmbH	Metals & Mining	5% (LIBOR +4%)	02/26/2018	03/08/2025		2,888		2,881		2,823
Total Germany							$	3,833	$	3,718

Luxembourg
Travelport Finance (Luxembourg) S.a r.l.	Services: Consumer	2.5% (LIBOR +1.5%)	09/22/2020	02/28/2025		2,184		2,058		2,251
Travelport Finance (Luxembourg) S.a r.l.	Services: Consumer	5.22% (LIBOR +5%)	09/22/2020	05/29/2026		1,745		1,723		1,458
Total Luxembourg							$	3,781	$	3,709

United Kingdom
Auxey Bidco Ltd.	Services: Consumer	5.16% (LIBOR +5%)	08/07/2018	06/16/2025		5,000	$	4,896	$	4,843
EG Group	Retail	4.22% (LIBOR +4%)	03/23/2018	02/07/2025		2,759		2,753		2,753
Total United Kingdom							$	7,649	$	7,596

United States of America
A Place for Mom Inc	Media: Advertising, Printing & Publishing	4.75% (LIBOR +3.75%)	07/28/2017	8/10/2024		3,830	$	3,822	$	3,777
Advanced Integration Technology LP	Aerospace & Defense	5.75% (LIBOR +4.75%)	07/15/2016	04/03/2023		1,895		1,892		1,782
Advisor Group Holdings Inc	Fire: Finance	4.6% (LIBOR +4.5%)	02/05/2021	07/31/2026		3,150		3,158		3,163
AG Parent Holdings LLC	High Tech Industries	5.1% (LIBOR +5%)	07/30/2019	07/31/2026		2,613		2,596		2,610
AgroFresh Inc.	Chemicals, Plastics & Rubber	7.25% (LIBOR +6.25%)	12/01/2015	12/31/2024		1,238		1,237		1,249
Alcami Carolinas Corp	Healthcare & Pharmaceuticals	4.39% (LIBOR +4.25%)	07/09/2018	7/12/2025		3,870		3,860		3,551
Alchemy US Holdco 1 LLC	Chemicals, Plastics & Rubber	5.6% (LIBOR +5.5%)	10/01/2018	10/10/2025		1,655		1,641		1,656
Allen Media, LLC	Media: Broadcasting & Subscription	5.72% (LIBOR +5.5%)	07/29/2021	02/10/2027		3,445		3,423		3,448
Alpine US Bidco LLC	Beverage, Food & Tobacco	6% (LIBOR +5.25%)	04/28/2021	04/13/2028		1,508		1,480		1,504
Alvogen Pharma US, Inc.	Healthcare & Pharmaceuticals	6.25% (LIBOR +5.25%)	09/02/2021	12/31/2023		3,148		3,052		3,018
AMCP Clean Acquisition Co LLC	Wholesale	4.35% (LIBOR +4.25%)	07/10/2018	06/15/2025		2,335		2,329		1,951
AMCP Clean Acquisition Co LLC	Wholesale	4.35% (LIBOR +4.25%)	07/10/2018	06/15/2025		565		564		472
American Achievement Corporation^{(3) (15)}	Retail	7.25% (LIBOR +6.25%)	02/11/2021	09/30/2026		1,470		-		-
American Public Education	Services: Consumer	6.25% (LIBOR +5.5%)	03/29/2021	09/01/2027		988		969		980
ANI Pharmaceuticals, Inc.	Healthcare & Pharmaceuticals	6.75% (LIBOR +6%)	05/24/2021	05/24/2027		2,000		1,961		2,009
Anne Arundel Dermatology Management, LLC⁽⁴⁾	Healthcare & Pharmaceuticals	7% (LIBOR +6%)	10/12/2020	10/16/2025		1,358		1,233		1,234

Logan JV Loan Portfolio as of December 31, 2021

(dollar amounts in thousands)

Type of Investment/

Portfolio company⁽¹²⁾

Industry

Interest Rate ⁽¹⁾

Initial

Acquisition

Date

Maturity

Date

Principal

Amortized

Cost

Fair

Value ⁽²⁾

Anne Arundel Dermatology Management, LLC ^{(5) (15)}

Healthcare & Pharmaceuticals

8.75% (LIBOR +6.5%)

10/12/2020

10/16/2025

451

)

Anne Arundel Dermatology Management, LLC

Healthcare & Pharmaceuticals

7.5% (LIBOR +6.5%)

10/12/2020

10/16/2025

2,028

1,997

1,995

Ansira Holdings, Inc.

Media: Diversified & Production

7.5% (LIBOR +6.5%)

04/17/2018

12/20/2024

682

680

545

Ansira Holdings, Inc.

Media: Diversified & Production

7.5% (LIBOR +6.5%)

12/20/2016

12/20/2024

2,046

2,039

1,637

Anthology / Blackboard

High Tech Industries

5.75% (LIBOR +5.25%)

10/22/2021

10/25/2028

1,500

1,449

1,476

Arcline FM Holding, LLC

Aerospace & Defense

5.5% (LIBOR +4.75%)

09/02/2021

06/23/2028

1,995

1,985

1,996

Ascend Performance Materials Operations LLC

Chemicals, Plastics & Rubber

5.5% (LIBOR +4.75%)

08/16/2019

08/27/2026

862

851

868

Axiom Global Inc.

Services: Business

5.5% (LIBOR +4.75%)

09/25/2019

10/01/2026

2,992

2,964

2,947

BCP Qualtek Merger Sub LLC

Telecommunications

7.25% (LIBOR +6.25%)

07/16/2018

07/18/2025

3,675

3,638

3,634

Brand Energy & Infrastructure Services, Inc.

Energy: Oil & Gas

5.25% (LIBOR +4.25%)

06/16/2017

06/21/2024

2,865

2,855

2,809

Canister International Group Inc

Forest Products & Paper

4.85% (LIBOR +4.75%)

12/18/2019

12/21/2026

1,965

1,951

1,974

Cano Health, LLC

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

06/24/2021

11/23/2027

1,985

1,980

1,987

Clear Balance Holdings, LLC

Fire: Finance

6.75% (LIBOR +5.75%)

07/07/2015

10/05/2023

4,529

4,523

4,348

Cloudera, Inc.

High Tech Industries

4.25% (LIBOR +3.75%)

08/10/2021

10/08/2028

3,000

2,971

2,996

CMI Marketing, Inc

Media: Advertising, Printing & Publishing

4.75% (LIBOR +4.25%)

03/19/2021

03/23/2028

1,990

2,002

2,012

Confluence Technologies, Inc.

High Tech Industries

4.25% (LIBOR +3.75%)

07/22/2021

07/31/2028

3,000

2,986

2,993

Conyers Park Parent Merger Sub Inc

Beverage, Food & Tobacco

4.75% (LIBOR +3.75%)

06/21/2017

07/07/2024

1,287

1,285

1,298

Drilling Info Inc.

High Tech Industries

4.35% (LIBOR +4.25%)

07/27/2018

07/30/2025

4,353

4,342

4,310

Eisner Advisory Group LLC

Banking, Finance, Insurance & Real Estate

7.5% (LIBOR +6.75%)

08/16/2021

07/28/2028

182

180

182

Eisner Advisory Group LLC

Banking, Finance, Insurance & Real Estate

6% (LIBOR +5.25%)

08/16/2021

08/13/2028

1,813

1,795

1,818

Eliassen Group, LLC

Services: Business

4.35% (LIBOR +4.25%)

10/19/2018

11/05/2024

4,597

4,586

4,551

Empower Payments Acquisition

Services: Business

4.47% (LIBOR +4.25%)

10/05/2018

10/05/2025

3,880

3,875

3,895

EyeSouth ^{(6) (15)}

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

03/15/2021

03/21/2028

295

)

EyeSouth

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

03/15/2021

03/12/2028

1,696

1,692

1,701

Gastro Health Holdco, LLC⁽⁷⁾

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

07/02/2021

07/03/2028

333

268

272

Gastro Health Holdco, LLC

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

07/02/2021

07/03/2028

998

993

1,005

Gold Standard Baking, Inc.⁽¹⁷⁾

Wholesale

7.5% (LIBOR +6.5%)

05/19/2015

07/23/2022

2,096

1,674

Golden West Packaging Group LLC

Containers, Packaging & Glass

6% (LIBOR +5.25%)

11/29/2021

12/01/2027

2,000

1,980

1,990

HDT Holdco, Inc.

Aerospace & Defense

6.5% (LIBOR +5.75%)

06/30/2021

07/08/2027

3,900

3,806

3,866

Hoffman Southwest Corporation

Environmental Industries

6% (LIBOR +5%)

05/16/2019

08/14/2023

1,362

1,356

1,334

Hornblower Sub LLC

Hotel, Gaming & Leisure

5.5% (LIBOR +4.5%)

03/08/2019

04/28/2025

1,771

1,539

1,676

International Textile Group Inc

Consumer goods: Durable

5.13% (LIBOR +5%)

04/20/2018

05/01/2024

913

911

848

Isagenix International LLC

Services: Consumer

6.75% (LIBOR +5.75%)

04/26/2018

06/14/2025

1,605

1,597

1,202

LaserShip, Inc.

Transportation: Cargo

5.25% (LIBOR +4.5%)

10/20/2021

04/30/2028

998

993

1,000

Lereta, LLC

Fire: Real Estate

6% (LIBOR +5.25%)

07/27/2021

07/27/2028

1,995

1,976

1,997

Lids Holdings, Inc

Retail

5.55% (LIBOR +0%)

12/03/2021

12/03/2026

1,000

980

985

Lifescan Global Corporation

Healthcare & Pharmaceuticals

6.13% (LIBOR +6%)

06/19/2018

10/01/2024

2,735

2,707

2,680

Liquid Tech Solutions Holdings, LLC

Transportation: Cargo

5.5% (LIBOR +4.75%)

03/18/2021

03/11/2028

2,987

2,974

2,987

LRS Holdings LLC

Environmental Industries

4.75% (LIBOR +4.25%)

08/13/2021

08/12/2028

2,500

2,488

2,503

MAG DS Corp.

Aerospace & Defense

6.5% (LIBOR +5.5%)

09/21/2020

04/01/2027

1,191

1,143

1,096

McAfee Enterprise

High Tech Industries

5.75% (LIBOR +5%)

05/03/2021

07/27/2028

2,991

2,963

2,987

Miller's Ale House Inc

Hotel, Gaming & Leisure

4.85% (LIBOR +4.75%)

05/24/2018

05/21/2025

2,316

2,310

2,234

MRI Software LLC

Construction & Building

6.5% (LIBOR +5.5%)

01/31/2020

02/10/2026

1,474

1,470

1,473

Logan JV Loan Portfolio as of December 31, 2021

(dollar amounts in thousands)

Type of Investment/

Portfolio company⁽¹²⁾

Industry

Interest Rate ⁽¹⁾

Initial

Acquisition

Date

Maturity

Date

Principal

Amortized

Cost

Fair

Value ⁽²⁾

NAC Holding Corporation

Fire: Insurance

6% (LIBOR +5%)

10/02/2020

09/28/2024

3,836

3,783

3,836

New Constellis Borrower LLC

Aerospace & Defense

8.5% (LIBOR +7.5%)

03/27/2020

03/27/2024

331

316

324

New Insight Holdings Inc

Services: Business

6.5% (LIBOR +5.5%)

12/08/2017

12/20/2024

1,920

1,879

1,899

NextCare, Inc.⁽⁸⁾

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.25%)

02/13/2018

06/30/2024

629

115

117

NextCare, Inc.

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.25%)

02/13/2018

06/30/2024

3,740

3,725

3,721

Northern Star Holdings Inc.

Utilities: Electric

5.75% (LIBOR +4.75%)

03/28/2018

03/28/2025

4,091

4,081

4,101

Oak Point Partners, LLC

Banking, Finance, Insurance & Real Estate

6.5% (LIBOR +5.5%)

12/01/2021

11/30/2027

2,850

2,808

2,807

Odyssey Logistics & Technology Corporation

Transportation: Cargo

5% (LIBOR +4%)

10/06/2017

10/12/2024

1,918

1,913

1,904

Omni Logistics

Transportation: Cargo

6% (LIBOR +5%)

11/24/2021

11/30/2027

172

171

Omni Logistics ⁽⁹⁾

Transportation: Cargo

6% (LIBOR +5%)

11/24/2021

11/30/2027

203

Omni Logistics

Transportation: Cargo

6% (LIBOR +5%)

11/24/2021

12/30/2026

1,620

1,604

1,608

Options Technology ^{(10) (15)}

Services: Business

4.8% (LIBOR +4.75%)

10/29/2021

12/26/2025

606

)

Options Technology

Services: Business

5.75% (LIBOR +4.75%)

10/29/2021

12/27/2025

2,452

2,423

2,421

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

10/18/2018

10/19/2024

549

546

549

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

03/04/2019

10/21/2024

810

806

810

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

10/18/2018

10/19/2024

1,877

1,869

1,877

Output Services Group Inc

Services: Business

5.5% (LIBOR +4.5%)

03/26/2018

03/21/2024

4,322

4,314

3,720

OVG Business Services, LLC

Services: Business

7.25% (LIBOR +6.25%)

10/15/2021

11/20/2028

2,500

2,475

Patriot Rail Co LLC

Transportation: Cargo

4.25% (LIBOR +4%)

02/24/2021

10/19/2026

3,439

3,463

3,456

PH Beauty Holdings III, Inc.

Containers, Packaging & Glass

5.18% (LIBOR +5%)

10/04/2018

09/28/2025

2,903

2,887

2,743

PLH Group Inc

Energy: Oil & Gas

6.15% (LIBOR +6%)

08/01/2018

07/25/2023

3,384

3,357

3,354

Portfolio Holding, Inc.

Banking, Finance, Insurance & Real Estate

7% (LIBOR +6%)

05/14/2021

12/02/2025

1,990

1,956

1,990

Portfolio Holding, Inc. ⁽¹¹⁾

Banking, Finance, Insurance & Real Estate

7% (LIBOR +6%)

11/15/2021

12/02/2025

417

221

225

Portfolio Holding, Inc.

Banking, Finance, Insurance & Real Estate

7% (LIBOR +6%)

11/15/2021

12/02/2025

625

613

625

Portillo's Holdings, LLC

Beverage, Food & Tobacco

6.5% (LIBOR +5.5%)

11/27/2019

09/06/2024

1,955

1,944

1,961

Precisely

High Tech Industries

4.75% (LIBOR +4%)

06/24/2021

04/24/2028

1,995

1,986

1,995

Premier Dental Services, Inc. ⁽¹²⁾

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

08/11/2021

08/18/2028

185

Premier Dental Services, Inc.

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

08/11/2021

08/18/2028

1,815

1,806

1,818

Pure Fishing Inc

Consumer goods: Non-Durable

4.6% (LIBOR +4.5%)

12/20/2018

12/22/2025

1,167

1,140

1,135

Quidditch Acquisition Inc

Beverage, Food & Tobacco

8% (LIBOR +7%)

03/16/2018

03/21/2025

983

974

970

Red Ventures, LLC

Media: Advertising, Printing & Publishing

2.6% (LIBOR +2.5%)

10/18/2017

11/08/2024

1,977

1,969

1,968

Reedy Industries Inc. ^{(13) (15)}

Services: Consumer

5.25% (LIBOR +4.5%)

08/24/2021

08/31/2028

299

)

Reedy Industries Inc.

Services: Consumer

5.25% (LIBOR +4.5%)

08/24/2021

08/31/2028

1,701

1,693

1,701

R-Pac International Corp ⁽¹⁴⁾

Containers, Packaging & Glass

6.75% (LIBOR +6%)

11/23/2021

01/15/2028

373

R-Pac International Corp

Containers, Packaging & Glass

6.75% (LIBOR +6%)

11/23/2021

01/15/2028

3,000

2,940

RSA Security LLC

High Tech Industries

5.5% (LIBOR +4.75%)

04/16/2021

04/27/2028

1,995

1,982

1,911

RXB Holdings, Inc.

Services: Business

5.25% (LIBOR +4.5%)

07/28/2021

12/20/2027

1,990

1,985

1,996

StubHub

High Tech Industries

4.75% (LIBOR +4.25%)

07/21/2021

02/12/2027

1,496

1,489

1,496

Teneo Holdings LLC

Services: Business

6.25% (LIBOR +5.25%)

07/15/2019

07/11/2025

3,194

3,138

3,208

Titan Sub LLC

Aerospace & Defense

5.1% (LIBOR +5%)

09/19/2019

09/21/2026

3,192

3,168

3,201

Upstream Newco, Inc.

Healthcare & Pharmaceuticals

4.35% (LIBOR +4.25%)

07/22/2021

11/20/2026

3,877

3,866

3,887

W3 Topco LLC

Energy: Oil & Gas

7% (LIBOR +6%)

08/13/2019

08/16/2025

1,775

1,700

1,757

Yak Access LLC

Energy: Oil & Gas

5.18% (LIBOR +5%)

06/29/2018

07/11/2025

2,588

2,548

2,328

Zenith American Holding, Inc.

Services: Business

6.25% (LIBOR +5.25%)

03/11/2019

12/13/2024

2,476

2,473

2,476

Zenith American Holding, Inc.

Services: Business

6.25% (LIBOR +5.25%)

03/11/2019

12/13/2024

123

122

123

Logan JV Loan Portfolio as of December 31, 2021

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹²⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost		Fair Value ⁽²⁾
Total United States of America							$	202,359	$	198,360

Total Senior Secured First Lien Term Loans							$	226,464	$	222,257

Second Lien Term Loans
United States of America
ASP MSG Acquisition Co Inc	Beverage, Food & Tobacco	8.25% (LIBOR +7.5%)	06/23/2021	08/16/2025		2,000	$	1,974	$	2,010
New Constellis Borrower LLC	Aerospace & Defense	12% (LIBOR +11%)	03/27/2020	03/27/2025		282		121		182
Total United States of America							$	2,095	$	2,192

Total Second Lien Term Loans							$	2,095	$	2,192

Total Investments							$	228,559	$	224,449


Cash equivalents
Dreyfus Government Cash Management Fund								14,985		14,985
Other cash accounts								735		735
Total Cash equivalents							$	15,720	$	15,720

⁽¹⁾	Variable interest rates indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option. LIBOR rates are subject to interest rate floors.

⁽²⁾	Represents fair value in accordance with ASC Topic 820.

⁽³⁾	Represents a revolver commitment of $1,470, which was unfunded as of December 31, 2021. Issuer pays 0.75% unfunded commitment fee on revolver term loan and/or revolving loan facilities.

⁽⁴⁾

Represents a delayed draw commitment of $1,358, of which $104 was unfunded as of December 31, 2021. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁵⁾	Represents a revolver commitment of $451, which was unfunded as of December 31, 2021. Issuer pays 0.5% unfunded commitment fee on revolver term loan and/or revolving loan facilities.

⁽⁶⁾	Represents a delayed draw commitment of $295, which was unfunded as of December 31, 2021. Issuer pays 4.5% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁷⁾

Represents a delayed draw commitment of $333, of which $63 was unfunded as of December 31, 2021. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays 4.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁸⁾

Represents a delayed draw commitment of $629, of which $512 was unfunded as of December 31, 2021. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁹⁾

Represents a delayed draw commitment of $203, of which $193 was unfunded as of December 31, 2021. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽¹⁰⁾	Represents a delayed draw commitment of $606, which was unfunded as of December 31, 2021. Issuer pays 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽¹¹⁾

Represents a delayed draw commitment of $417, of which $197 was unfunded as of December 31, 2021. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

Logan JV Loan Portfolio as of December 31, 2021

(dollar amounts in thousands)

⁽¹²⁾

Represents a delayed draw commitment of $185, of which $107 was unfunded as of December 31, 2021. Unfunded amounts of a delayed draw position have a lower rate than the contractual fully funded rate. Issuer pays 4.50% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽¹³⁾	Represents a revolver commitment of $299, which was unfunded as of December 31, 2021. Issuer pays 4.5% unfunded commitment fee on revolver term loan and/or revolving loan facilities.

⁽¹⁴⁾	Represents a revolver commitment of $373, of which $299 was unfunded as of December 31, 2021. Issuer pays 0.5% unfunded commitment fee on revolver term loan and/or revolving loan facilities.

⁽¹⁵⁾	Unfunded amount will start to accrue interest when the position is funded. 3 month LIBOR as of December 31, 2021 or LIBOR floor is shown to reflect possible projected interest rate

⁽¹⁶⁾	All investments are pledged as collateral for loans payable unless otherwise noted.

⁽¹⁷⁾	Loan was on non-accrual as of December 31, 2021.

Logan JV Summarized Financial Information:

Below is certain summarized financial information for Logan JV as of March 31, 2022 and December 31, 2021 and for the three months ended March 31, 2022 and 2021:

Selected Balance Sheet Information:


	As of March 31, 2022		As of December 31, 2021
	(Dollars in thousands)		(Dollars in thousands)
Assets:
Investments at fair value (cost of $282,304 and $228,559, respectively)	$	276,889	$	224,449
Cash		15,693		15,720
Other assets		1,091		834
Total assets	$	293,673	$	241,003
Liabilities:
Loans payable reported net of unamortized debt issuance costs	$	162,926	$	145,782
Payable for investments purchased		36,834		-
Distribution payable		3,150		2,900
Other liabilities		1,310		1,317
Total liabilities	$	204,220	$	149,999
Members' capital	$	89,453	$	91,004
Total liabilities and members' capital	$	293,673	$	241,003

Selected Statement of Operations Information:

	For the three months ended March, 31 2022			For the three months ended March, 31 2021
	(Dollars in thousands)			(Dollars in thousands)
Interest income	$	3,386		$	3,530
Fee income		19			-
Total revenues		3,405			3,530
Credit facility expenses ⁽¹⁾	$	1,467		$	1,493
Other fees and expenses		96			77
Total expenses		1,563			1,570
Net investment income		1,842			1,960
Net realized gain (loss)		13			194
Net change in unrealized (depreciation) appreciation on investments		(1,306	)		4,085
Net increase in members' capital from operations	$	549		$	6,239

⁽¹⁾	As of March 31, 2022, Logan JV had $164,041 of outstanding debt under the credit facility with an effective interest rate of 2.88% per annum. As of December 31, 2021, Logan JV had $147,041 of outstanding debt under the credit facility with an effective interest rate of 2.88% per annum.

Revolving and Unfunded Delayed Draw Loans

For the Company’s investments in revolving and delayed draw loans, the cost basis of the investments purchased is adjusted for the cash received for the discount on the total balance committed. The fair value is also adjusted for price appreciation or depreciation on the unfunded portion. As a result, the purchase of commitments not completely funded may result in a negative value until it is offset by the future amounts called and funded.

4. Related Party Transactions

Investment Management Agreement

On January 28, 2020, the Company’s Board unanimously approved an interim investment management agreement (the “Interim Investment Management Agreement”) and an Investment Management Agreement (the “Investment Management Agreement”) between the Company and the Advisor, both of which included substantially the same terms as the amended and restated investment management agreement which became effective on June 14, 2019 (the “Prior Investment Management Agreement”). The Interim Investment Management Agreement became effective January 31, 2020. The Investment Management Agreement became effective May 28, 2020 upon stockholder approval obtained at a special stockholder meeting held on such date and the Interim Investment Management Agreement terminated immediately. The Investment Management Agreement, the Interim Investment Agreement and the Prior Investment Management Agreement are collectively referred to as the Investment Management Agreements. Consistent with the terms under the Prior Investment Management Agreement, under the Interim Investment Management Agreement and the Investment Management Agreement, the Advisor, subject to the overall supervision of the Company’s board of directors, manages the day-to-day operations of and provides investment advisory services to the Company.

Base Management Fee

For the three months ended March 31, 2022 and 2021, the base management fee was calculated at an annual rate of 1.0% of the Company’s gross assets payable quarterly in arrears on a calendar quarter basis. The 1.0% rate is pursuant to the Investment Management Agreements.

On May 5, 2022, the Company approved a proposal from the Advisor to irrevocably waive $400 of the base management fee earned for the three month period ended March 31, 2022.

On March 3, 2020, the Company approved a proposal from the Advisor to irrevocably waive management and incentive fees for the Company for the period from July 1, 2020 through December 31, 2020. The Advisor subsequently agreed to extend the management and incentive fee waiver through March 31, 2021.

For purposes of calculating the base management fee, “gross assets” is determined as the value of the Company’s assets without deduction for any liabilities. The base management fee is calculated based on the value of the Company’s gross assets at the end of the most recently completed calendar quarter, and appropriately adjusted for any share issuances or repurchases during the current calendar quarter.

For the three months ended March 31, 2022 and 2021, the Company incurred base management fees of $629 and $0, respectively, net of management fees waived of $400 and $879, respectively. As of March 31, 2022 and December 31, 2021, $629 and $1,063, respectively, was payable to the Advisor.

Incentive Fee

The incentive fee consists of two components as described in detail below: incentive fee on ordinary income and incentive fee on capital gains. The two components are determined independent of each other.

Incentive Fee on Ordinary Income

The incentive fee on ordinary income is calculated by reference to the Company’s aggregate Pre-incentive fee net investment income (as described below) for the most recent trailing twelve quarter period or, if shorter, the number of quarters that have occurred since January 1, 2018 (“Trailing Twelve Quarter Period”). Pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees, such as commitment, origination, structuring, diligence, managerial assistance and consulting fees or other fees that we may receive from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under the Company’s administration agreement discussed below), interest expense and any dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee and any offering expenses not charged to operations and excluding reversals of the incentive fee solely to the extent such reversals have the effect of reducing previously accrued incentive fees based on the deferral of non-cash interest. Furthermore, pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income not yet received in cash; provided, however, that the portion of the incentive fee attributable to deferred interest features shall be paid, together with interest thereon from the date of deferral to the date of payment at the prime rate published from time to time by the Wall Street Journal or, in the absence thereof, a bank chosen by the board of directors, only if and to the extent received in cash, and any accrual thereof shall be reversed if and to the extent such interest is reversed in connection with any write off or similar permanent impairment of the investment giving rise to any deferred interest accrual, applied in each case in the order such interest was accrued. Pre-incentive fee net investment income is expressed as a rate of return on the value of the Company’s net assets at the beginning of each applicable calendar quarter comprising of the relevant Trailing Twelve Quarter Period. The hurdle amount for incentive fee based on pre-incentive fee net investment income is determined on a quarterly basis and equal to 2.0% (8.0% annualized) multiplied by the net asset value attributable to the Company’s common stock at the beginning of each applicable calendar quarter comprising the relevant Trailing Twelve Quarter Period (also referred to as “hurdle rate”). The hurdle amount will be calculated after making appropriate adjustments for subscriptions (which includes all issuances by the Company of shares of our common stock, including issuances pursuant to its dividend reinvestment plan) and distributions that occurred during the relevant Trailing Twelve Quarter Period.

The incentive fee based on pre-incentive net investment income for the relevant Trailing Twelve Quarter Period in each calendar quarter will be determined as follows:

•

The Advisor receives no incentive fee for any calendar quarter in which the Company’s pre-incentive fee net investment income does not exceed the hurdle rate;

•

Subject to the Incentive Fee Cap (as defined below), the Advisor receives 100% of the Company’s pre-incentive fee net investment income for the Trailing Twelve Quarters with respect to that portion of the pre-incentive net investment income for such quarter, if any, that exceeds the hurdle rate but is less than 2.5% (10.0% annualized) (also referred to as the “catch-up” provision); and

•

17.5% of the Company’s pre-incentive fee net investment income for the Trailing Twelve Quarter Period with respect to that portion of the pre-incentive fee net investment income for such quarter, if any, that exceeds 2.5% (10.0% annualized).

The amount of the incentive fee on pre-incentive net investment income that will be paid for a particular quarter will equal the excess of the incentive fee so calculated minus the aggregate incentive fees on ordinary income that were paid in respect of the eleven preceding calendar quarters (or if shorter, the appropriate number of preceding quarters incentive fees paid that have occurred since January 1, 2018) included in the relevant Trailing Twelve Quarter Period but not in excess of the Incentive Fee Cap (as described below).

The foregoing incentive fee is subject to an Incentive Fee Cap (as defined below). The Incentive Fee Cap for any quarter is an amount equal to (a) 20% of the Cumulative Net Return (as defined below) during the relevant Trailing Twelve Quarter Period, minus (b) the aggregate incentive fees based on income that were paid in respect of the first eleven calendar quarters (or the portion thereof) included in the relevant Trailing Twelve Quarter Period.

“Cumulative Net Return” means (x) pre-incentive fee net investment income in respect of the relevant Trailing Twelve Quarter Period minus (y) any Net Capital Loss, if any, in respect of the relevant Trailing Twelve Quarter Period. If, in any quarter, the Incentive Fee Cap is zero or a negative value, the Company pays no incentive fee based on income to the Advisor for such quarter. If, in any quarter, the Incentive Fee Cap for such quarter is a positive value but is less than the incentive fee based on pre-incentive net investment income that is payable to the Advisor for such quarter (before giving effect to the Incentive Fee Cap) calculated as described above, the Company pays an incentive fee based on pre-incentive fee net investment income to the Advisor equal to the Incentive Fee Cap for such quarter. If, in any quarter, the Incentive Fee Cap for such quarter is equal to or greater than the incentive fee based on pre-incentive fee net investment income that is payable to the Advisor for such quarter (before giving effect to the Incentive Fee Cap) calculated as described above, the Company pays an incentive fee based on

income to the Advisor equal to the incentive fee calculated as described above for such quarter without regard to the Incentive Fee Cap.

“Net Capital Loss” in respect of a particular period means the difference, if positive, between (i) aggregate capital losses, whether realized or unrealized, in such period and (ii) aggregate capital gains, whether realized or unrealized, in such period.

For the three months ended March 31, 2022 and 2021, the Company incurred no incentive fee related to ordinary income.

Incentive Fee on Net Investment Income Payable

For the three months ended March 31, 2022 and 2021, the Company reversed $0 and $0, respectively, of incentive fees related to the adjustment of previously deferred incentive fees payable.

As of March 31, 2022 and December 31, 2021, $0 and $0, respectively, of such incentive fees related to previously deferred income now received in cash are currently payable to the Advisor and reflected in accrued expenses and other payables in the Consolidated Statements of Assets and Liabilities. As of March 31, 2022 and December 31, 2021, $0 and $0, respectively of incentive fees incurred by the Company were generated from deferred interest (i.e. PIK, certain discount accretion and deferred interest) and are not payable until such amounts are received in cash. These amounts are reflected in accrued incentive fees on the Consolidated Statements of Assets and Liabilities.

Incentive Fee on Capital Gains

The second component of the incentive fee (capital gains incentive fee) is determined and payable in arrears as of the end of each calendar year (or upon termination of the investment management agreement, as of the termination date). This component is equal to 17.5% of the Company’s cumulative aggregate realized capital gains from inception through the end of that calendar year, computed net of the cumulative aggregate realized capital losses and cumulative aggregate unrealized capital depreciation through the end of such year. The calculation of the capital gains incentive fee has not been modified or waived. The aggregate amount of any previously paid capital gains incentive fees is subtracted from such capital gains incentive fee calculated. There was no capital gains incentive fee payable to the Company’s Advisor under the Investment Management Agreement, Interim Investment Management Agreement and Prior Investment Management Agreement as of March 31, 2022 and December 31, 2021.

GAAP Incentive Fee Accrual

GAAP requires that the incentive fee accrual be calculated assuming a hypothetical liquidation of the Company at the balance sheet date. A hypothetical liquidation considers the cumulative aggregate realized gains and losses and unrealized capital appreciation or depreciation of investments or other financial instruments, in the calculation, as an incentive fee would be payable if such realized gains and losses or unrealized capital appreciation or depreciation were realized, even though such realized gains and losses and unrealized capital appreciation or depreciation is not permitted to be considered in calculating the fee actually payable under the investment management agreement (“GAAP Incentive Fee”). There can be no assurance that such unrealized appreciation or depreciation will be realized in the future. Accordingly, such fee, as calculated and accrued, would not necessarily be payable under the investment management agreement, and may never be paid based upon the computation of incentive fees in subsequent periods. For the three months ended March 31, 2022 and 2021, the Company incurred no incentive fees related to the GAAP incentive fee.

Administration Agreement

The Company has also entered into an administration agreement with the Advisor on January 31, 2020 under which the Advisor will provide administrative services to the Company. Under the administration agreement, the Advisor performs, or oversees the performance of administrative services necessary for the operation of the Company, which include, among other things, being responsible for the financial records which the Company is required to maintain and preparing reports to the Company’s stockholders and reports filed with the SEC. In addition, the Advisor assists in determining and publishing the Company’s net asset value, oversees the preparation and filing of the Company’s tax returns and the printing and dissemination of reports to the Company’s stockholders, and generally oversees the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. The Company will reimburse the Advisor for its allocable portion of the costs and expenses incurred by the Advisor for overhead in performance by the Advisor of its duties under the administration agreement and the investment management agreement, which includes the Company’s allocable portion of cost of compensation and related expenses of the Company’s officers and their respective staffs. The Company’s board of directors reviews the allocation methodologies with respect to such expenses. Such allocated costs are reflected as administrator expenses in the accompanying Consolidated Statements of Operations. Under the administration agreement, the Advisor provides, on behalf of the Company, managerial assistance to those portfolio companies to which the Company is required to provide such

assistance. To the extent that the Company’s Advisor outsources any of its functions, the Company pays the fees associated with such functions on a direct basis without profit to the Advisor.

For the three months ended March 31, 2022 and 2021, the Company incurred administrator expenses of $295 and $221, respectively. As of March 31, 2022 and December 31, 2021, $0 and $118 of administrator expenses were due to the Advisor, respectively, which was included in accrued administrator expenses on the Consolidated Statement of Assets and Liabilities.

Managed Funds

The Advisor and its affiliates may also manage other funds in the future that may have investment mandates that are similar, in whole or in part, with ours. For example, the Advisor may serve as investment adviser to one or more private funds, registered closed-end funds and collateralized loan obligations (CLO). In addition, the Company’s officers may serve in similar capacities for one or more private funds, registered closed-end funds and CLOs. The Advisor and its affiliates may determine that an investment is appropriate for us and for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, the Advisor or its affiliates may determine that the Company should invest side- by-side with one or more other funds. The Advisor’s policies are designed to manage and mitigate the conflicts of interest associated with the allocation of investment opportunities if we are able to co-invest, either pursuant to SEC interpretive positions or an exemptive order, with other funds managed by the Advisor and its affiliates. As a result, the Advisor and/or its affiliates may face conflicts in allocating investment opportunities between us and such other entities. Although the Advisor and its affiliates will endeavor to allocate investment opportunities in a fair and equitable manner and consistent with applicable allocation procedures, it is possible that we may not be given the opportunity to participate in investments made by investment funds managed by the Advisor or its affiliates.

The 1940 Act generally prohibits BDCs from making certain negotiated co-investments with affiliates absent an order from the SEC permitting the BDC to do so. The SEC has granted the Company the relief it sought in an exemptive application that expands the Company’s ability to co-invest in portfolio companies with certain other funds managed by the Advisor or its affiliates (“Affiliated Funds”) and, subject to certain conditions, proprietary accounts of the Advisor or its affiliates (“Proprietary Accounts”) in a manner consistent with the Company’s investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions (the “Order”). Pursuant to the Order, the Company is permitted to co-invest with Affiliated Funds and/or Proprietary Accounts if, among other things, a “required majority” (as defined in Section 57(o) of the 1940 Act) or its independent directors make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the transactions, including the consideration to be paid, are reasonable and fair to the Company and its stockholders and do not involve overreaching of the Company or its stockholders on the part of any person concerned, and (2) the transaction is consistent with the interests of the Company’s stockholders and is consistent with its investment objective and strategies.

Due To and From Affiliates

The Advisor pays certain other general and administrative expenses on behalf of the Company. As of March 31, 2022 and December 31, 2021, there were $83 and $116, respectively, due to affiliate, which was included in accrued expenses and other liabilities on the Consolidated Statements of Assets and Liabilities.

As of March 31, 2022 and December 31, 2021, the Advisor owed $0 and $0, respectively, of administrator expenses as a reimbursement to the Company, which was included in due from affiliate on the Consolidated Statements of Assets and Liabilities.

The Company acts as the investment adviser to First Eagle Greenway Fund II LLC (“Greenway II”) and is entitled to receive certain fees. As a result, Greenway II is classified as an affiliate of the Company. As of March 31, 2022 and December 31, 2021, $52 and $44, respectively, of total fees and expenses related to Greenway II, was included in due from affiliate on the Consolidated Statements of Assets and Liabilities.

For the Company’s controlled equity investments, as of March 31, 2022, it had $2,520 of dividends receivable from Logan JV and $2 of interest and fees from OEM Group, LLC, included in interest, dividends, and fees receivable on the Consolidated Statements of Assets and Liabilities. As of December 31, 2021, it had $2,254 of dividends receivable from Logan JV and $238 of interest and fees from OEM Group, LLC, included in interest, dividends, and fees on the Consolidated Statements of Assets and Liabilities.

5. Realized Gains and Losses on Investments, net of income tax provision

The following shows the breakdown of net realized gains and losses for the three months ended March 31, 2022 and 2021:

	For the three months ended March 31,
	2022		2021
Alex Toys, LLC⁽¹⁾	$	—	$	(1,888	)
Other ⁽²⁾		44		(1,256	)
Net realized gain (losses)	$	44	$	(3,144	)

⁽¹⁾		On March 31, 2021, the Company wrote off their investment in Alex Toys, LLC. The realized loss of $1,888 was offset by a corresponding change in unrealized appreciation in the same amount.
⁽²⁾		During the three months ended March 31, 2021, the Company realized a net loss reflecting the collectability of the remaining escrow and other receivables balance.

6. Net Increase (Decrease) in Net Assets Per Share Resulting from Operations

The following information sets forth the computation of basic and diluted net increase (decrease) in net assets per share resulting from operations:

	For the three months ended March 31,
	2022			2021
Numerator—net increase (decrease) in net assets resulting from operations:	$	(3,951	)	$	9,489
Denominator—basic and diluted weighted average common shares:		30,012			30,109
Basic and diluted net increase (decrease) in net assets per common share resulting from operations:	$	(0.13	)	$	0.32

Diluted net increase (decrease) in net assets per share resulting from operations equals basic net increase (decrease) in net assets per share resulting from operations for each period because there were no common stock equivalents outstanding during the above periods.

7. Borrowings

The following shows a summary of the Company’s borrowings as of March 31, 2022 and December 31, 2021:

	As of
	March 31, 2022									December 31, 2021
Facility	Commitments		Borrowings Outstanding ⁽¹⁾		Weighted Average Borrowings Outstanding⁽²⁾		Weighted Average Interest Rate ⁽⁵⁾			Commitments		Borrowings Outstanding ⁽³⁾		Weighted Average Borrowings Outstanding ⁽⁴⁾		Weighted Average Interest Rate ⁽⁵⁾
Revolving Facility	$	175,000	$	121,500	$	105,528		3.11	%	$	150,000	$	114,100	$	69,840		3.50	%
2022 Notes		-		-		-		0.00	%		-		-		28,500		0.00	%
2023 Notes		-		-		-		0.00	%		-		-		50,460		0.00	%
2026 Notes		111,600		-		111,600		4.90	%		111,600		111,600		45,480		4.90	%
Total	$	286,600	$	121,500	$	217,128		3.97	%	$	261,600	$	225,700	$	194,280		4.19	%

(1)	As of March 31, 2022, excludes deferred financing costs of $3,016 and includes an issuance premium of $358 for the 2026 Notes presented as a reduction to the respective balances outstanding in the Consolidated Statements of Assets and Liabilities.

(2)	Represents the weighted average borrowings outstanding for the three months ended March 31, 2022.

(3)	As of December 31, 2021, excludes deferred financing costs of $3,188 and includes an issuance premium of $381 for the 2026 Notes presented as a reduction to the respective balances outstanding in the Consolidated Statements of Assets and Liabilities.

(4)	Represents the weighted average borrowings outstanding for the year ended December 31, 2021.

(5)	Represents the weighted average interest rate as of March 31, 2022 and December 31, 2021 which incorporates the amortization of the $358 premium and $381 premium received on the issuance of the 2026 Notes, respectively.

Credit Facility

On December 15, 2017, the Company entered into an amendment, or the Revolving Amendment, to its existing revolving credit agreement, or Revolving Facility. The Revolving Amendment revised the Revolving Facility dated August 19, 2015 to, among other things, extend the maturity date from August 2019 to December 2022 (with a one year term out period beginning in December 2021). The one year term out period is the one year anniversary between the revolver termination date, or the end of the availability period, and the maturity date. During this time, the Company is required to make mandatory prepayments on its loans from the proceeds it receives from the sale of assets, extraordinary receipts, returns of capital or the issuances of equity or debt. The Revolving Amendment also reduced the size of the revolver commitments from $303,500 to $275,000 and terminated the $75,000 Term Loan Facility.

On March 26, 2019, the Company entered into Amendment No. 1 which amended the Revolving Facility to, among other things, (i) reduce the size of the commitments thereunder to $190,000; (ii) provide a $20,000 letter of credit subfacility; and (iii) lower the testing levels of certain financial covenants.

On March 13, 2020, the Company entered into Amendment No. 4 which further amended the Revolving Facility to, among other things, reduce the size of commitments from $190,000 to $150,000.

On April 14, 2020, the Company entered into Amendment No. 5 which, among other things, (i) permanently reduced the asset coverage test from a minimum of 200% to a minimum of 165%; (ii) permanently reduced the shareholder's equity and obligor's net worth test from a minimum of $175,000 each to a minimum of $140,000 each; (iii) permanently reduced the size of the lender's commitments under the Revolving Facility from $150,000 to $120,000; and (iv) permanently increased the interest rate by 25 basis points with a mechanism for an additional 25 basis points increase dependent on certain testing levels, as well as added a 50 basis point LIBOR floor.

On October 16, 2020, the Company entered into the Third Amended and Restated Senior Secured Revolving Credit Agreement, which among other things, (i) reduced the size of the revolver commitment from $120,000 to $100,000; (ii) increased the applicable margin on LIBOR borrowings from 2.75% to 3.00%; (iii) permanently reduced the asset coverage test from a minimum of 165% to a minimum of 150%; and (iv) extended the maturity date from December 2022 to October 2024 (with a one year term out period beginning in October 2023).

The Revolving Facility includes an accordion feature permitting the Company to expand the Revolving Facility, if certain conditions are satisfied; provided, however, that the aggregate amount of the Revolving Facility, collectively, is capped. The Third Revolving Amendment revised the cap from $300,000 to $200,000.

On March 31, 2021, the Company entered into an Incremental Commitment Agreement which increased the size of the revolver commitment from $100,000 to $125,000. On September 15, 2021, the Company entered into an Incremental Commitment and Assumption Agreement which further increased the size of the revolver commitment from $125,000 to $150,000.

On March 11, 2022, the Company entered into Amendment No. 1 to the Third Amended and Restated Senior Secured Revolving Credit Agreement, which among other things, (i) increased the size of the revolver commitment from $150,000 to $175,000; (ii) increased the cap under the accordion feature to $275,000; (iii) extended the maturity date from October 2024 to March 2027 (with a one year term out period beginning in March 2026); (iv) replaced the LIBOR reference rate with Term Secured Overnight Financing Rate (“SOFR”) (subject to a 50 basis point floor); and (v) decreased the applicable margin from 3.00% to 2.50% per annum.

For the period up to March 10, 2022, the Revolving Facility, denominated in U.S. dollars, had an interest rate of LIBOR plus 3.00% (with a 0.50% LIBOR floor). Subsequent to March 10, 2022, the Revolving Facility has an interest rate of Term SOFR plus 2.50% (with a 0.50% floor). The non-use fee is 1.0% annually if the Company uses 35% or less of the Revolving Facility and 0.50% annually if the Company uses more than 35% of the Revolving Facility.

As of March 31, 2022, the Company had USD borrowings of $121,500 outstanding under the Revolving Facility with a quarter-end interest rate of 3.11%.

The Revolving Facility generally requires payment of interest on a quarterly basis for ABR loans (commonly based on the Prime Rate or the Federal Funds Rate), and at the end of the applicable interest period for Term SOFR loans bearing interest at the applicable relevant rate, the interest rate benchmark used to determine the variable rates paid on the Revolving Facility. All outstanding principal is due upon each maturity date. The Revolving Facility also requires a mandatory prepayment of interest and principal upon certain triggering events (including, without limitation, the disposition of assets or the issuance of certain securities).

Borrowings under the Revolving Facility are subject to, among other things, a minimum borrowing/collateral base. The Revolving Facility has certain collateral requirements and/or covenants, including, but not limited to covenants related to: (a) limitations on the incurrence of additional indebtedness and liens, (b) limitations on certain investments, (c) limitations on certain restricted payments, (d) limitations on the creation or existence of agreements that prohibit liens on certain properties of the Company and its subsidiaries, and (e) compliance with certain financial maintenance standards including (i) minimum

stockholders’ equity, (ii) a ratio of total assets (less total liabilities not represented by senior securities) to the aggregate amount of senior securities representing indebtedness, of the Company and its consolidated subsidiaries, of not less than 1.50, (iii) minimum liquidity, and (iv) minimum net worth. In addition to the financial maintenance standards, described in the preceding sentence, borrowings under the Revolving Facility (and the incurrence of certain other permitted debt) are subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio.

The credit agreement governing the Revolving Facility also includes default provisions such as the failure to make timely payments under the Revolving Facility, the occurrence of a change in control, and the failure by the Company to materially perform under the operative agreements governing the Revolving Facility, which, if not complied with, could, at the option of the lenders under the Revolver Facility, accelerate repayment under the Revolving Facility, thereby materially and adversely affecting the Company’s liquidity, financial condition and results of operations. The Company cannot be assured that it will be able to borrow funds under the Revolving Facility at any particular time or at all. The Company is currently in compliance with all financial covenants under the Revolving Facility.

As of March 31, 2022 and December 31, 2021, the carrying amount of the Company’s outstanding Revolving Facility approximated fair value. The fair values of the Company’s Revolving Facility is determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Company’s Revolving Facility is estimated based upon market interest rates and entities with similar credit risk. As of March 31, 2022 and December 31, 2021, the Revolving Facility is deemed to be Level 3 of the fair value hierarchy.

Interest expense and related fees, excluding amortization of deferred financing costs, of $981 and $563 were incurred in connection with the Revolving Facility for the three months ended March 31, 2022 and 2021. Amortization of deferred financing costs of $128 and $202 were incurred with the Revolving Facility for the three months ended March 31, 2022 and 2021. As of March 31, 2022 and December 31, 2021, the Company had $2,271 and $1,496, respectively, of deferred financing costs related to the Revolving Facility, which is presented as an asset on the Consolidated Statements of Assets and Liabilities.

Recent legislation modified the 1940 Act by allowing a BDC to increase the maximum amount of leverage it may incur under the 1940 Act from an asset coverage ratio of 200% to an asset coverage ratio of 150%, if certain requirements are met. At the Company’s Annual Meeting of Stockholders on June 14, 2019, stockholders approved a proposal to reduce the Company’s asset coverage ratio to 150%. Such asset coverage ratio became effective on June 15, 2019. On April 14, 2020, the Company received lender consent to reduce its asset coverage ratio to 165% and on October 16, 2020, we received lender consent to reduce our asset coverage ratio to 150%. The Company’s asset coverage ratio as of March 31, 2022 was 177%.

Notes

2022 Notes

In December 2015 and November 2016, the Company completed public offerings of $35,000 and $25,000, respectively, in aggregate principal amount of 6.75% notes due 2022 (“2022 Notes”). The 2022 Notes bore interest at a rate of 6.75% per year payable quarterly on March 30, June 30, September 30 and December 30, of each year, beginning March 30, 2016 and traded on the New York Stock Exchange under the trading symbol “FCRZ”. On June 21, 2021, the Company redeemed at par the 2022 Notes with proceeds from the issuance of the 2026 Notes (see below). As a result of this redemption, the Company recognized a loss on extinguishment of debt of $543 during the year ended December 31, 2021 on the Consolidated Statements of Operations.

2023 Notes

On October 16, 2018, the Company completed a public offering of $51,607 in aggregate principal amount of 6.125% notes due 2023 ("2023 Notes"), including the underwriters’ exercise of their option to purchase an additional $1,607 to cover overallotments. The 2023 Notes bore interest at a rate of 6.125% per year payable quarterly on March 30, June 30, September 30 and December 30, of each year, beginning December 30, 2018 and traded on the New York Stock Exchange under the trading symbol “FCRW”. On December 22, 2021, the Company redeemed at par the 2023 Notes with proceeds from the issuance of the 2026 Notes (see below). As a result of this redemption, the Company recognized a loss on extinguishment of debt of $789 during the year ended December 31, 2021 on the Consolidated Statements of Operations.

2026 Notes

On June 2, 2021, the Company completed a public offering of $69,000 in aggregate principal amount of 5.00% notes due 2026 (“2026 Notes”), including the underwriters’ exercise of their option to purchase an additional $9,000 to cover overallotments. The 2026 Notes mature on May 25, 2026 and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after May 25, 2023. The 2026 Notes bear interest at a rate of 5.00% per year payable quarterly on March 30, June 30, September 30 and December 30 of each year, beginning September 30, 2021. The 2026 Notes trade on the New York Stock Exchange under the trading symbol “FCRX”. The Company used the net proceeds of the 2026 Notes to redeem the 2022 Notes and partially repay outstanding indebtedness under the Revolving Credit Facility.

On November 17, 2021, the Company completed a public offering of an additional $42,600 in aggregate principal amount of 2026 Notes, including the underwriters’ exercise of their option to purchase an additional $2,600 to cover overallotments. The 2026 Notes were issued at a price of 101% of the aggregate principal amount of the 2026 Notes. The additional 2026 Notes were a further issuance of, fungible with, rank equally in right of payment with and have the same terms (other than the issue date and the public offering price) as the initial issuance of the 2026 Notes. The Company used the net proceeds of the 2026 Notes to redeem the 2023 Notes.

The 2022 Notes, 2023 Notes, and 2026 Notes are collectively referred to as the Notes, except that the 2022 and 2023 Notes are not included with respect to dates subsequent to their redemption, and the 2026 Notes are not included with respect to dates prior to their issuance.

As of March 31, 2022, the carrying amount and fair value of the Notes was $111,600 and $109,993, respectively. As of December 31, 2021, the carrying amount and fair value of the Notes was $111,600 and $114,055, respectively. The fair value the Notes are determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Notes is based on the closing price of the security, which is a Level 2 input under ASC 820 due to the trading volume.

In connection with the issuance of the 2022 Notes, 2023 Notes and 2026 Notes, the Company incurred $2,568, $2,213, and $3,503 of fees and expenses, respectively. These deferred financing costs are presented as a reduction to the notes payable balance and are being amortized using the effective yield method over the term of the Notes. For the three months ended March 31, 2022 and 2021, the Company amortized approximately $179 and $206 of deferred financing costs, respectively, which is reflected in amortization of deferred financing costs on the Consolidated Statements of Operations. As of March 31, 2022, the Company had $3,016 of remaining deferred financing costs on the Notes, which was netted against the $358 of unamortized premium on the 2026 Notes and presented as a reduction to the notes payable balance on the Consolidated Statements of Assets and Liabilities. As of December 31, 2021, the Company had $3,188 remaining deferred financing costs on the Notes, which was netted against the $381 of unamortized premium on the 2026 Notes and presented as a reduction to the notes payable balance on the Consolidated Statements of Assets and Liabilities.

For the three months ended March 31, 2022 and 2021, the Company incurred interest expense on the Notes of $1,374 and $1,803, respectively.

The indenture and supplements thereto relating to the Notes contain certain covenants, including but not limited to (i) an inability to incur additional borrowings, including through the issuance of additional debt or the sale of additional debt securities

unless the Company’s asset coverage, meets the definition in the 1940 Act after such borrowing and (ii) if the Company is not subject to the reporting requirements under the Securities and Exchange Act of 1934 to file periodic reports with the SEC the Company will provide interim and consolidated financial information to the holders of the Notes and the trustee.

8. Contractual Obligations and Off-Balance Sheet Arrangements

From time to time, the Company, or the Advisor, may become party to legal proceedings in the ordinary course of business, including proceedings related to the enforcement of the Company’s rights under contracts with its portfolio companies. Neither the Company, nor the Advisor, is currently subject to any material legal proceedings.

Unfunded commitments to provide funds to portfolio companies are not reflected on the Company’s Consolidated Statements of Assets and Liabilities. The Company’s unfunded commitments may be significant from time to time. These commitments will be subject to the same underwriting and ongoing portfolio maintenance as are the on-balance sheet financial instruments that the Company holds. Since these commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company intends to use cash flow from normal and early principal repayments and proceeds from borrowings and offerings to fund these commitments.

As of March 31, 2022 and December 31, 2021, the Company has the following unfunded commitments to portfolio companies:

	As of
	March 31, 2022		December 31, 2021
Unfunded delayed draw facilities
Advanced Web Technologies	$	—	$	365
Alcanza Clinical Research		250		250
Alpine X		913		913
BCDI Rodeo Dental Buyer, LLC		125		125
CC Amulet Management, LLC		922		922
Cedar Services Group, LLC		856		142
ConvenientMD		1,719		1,719
Doxa Insurance Holdings, LLC		1,419		1,419
Endo1 Partners		303		515
HealthDrive Corporation		79		79
Integrated Pain Management Medical Group, Inc.		379		379
Lighthouse Behavioral Health Solutions, LLC		2,290		—
Lighthouse Lab Services		546		546
MarkLogic Corporation		565		565
Multi Specialty Healthcare LLC		150		150
Newcleus, LLC		1,136		1,271
PDFTron Systems Inc.		-		194
Socius Insurance Services, Inc.		1,842		1,842
SuperHero Fire Protection, LLC		613		613
Technology Partners, LLC		1,037		1,037
TMA Buyer, LLC		1,540		1,540
Tricor Borrower, LLC		1,326		1,326
TriStrux, LLC		1,448		1,448
		19,458		17,360

Unfunded revolving commitments
1-800 Hansons, LLC ⁽¹⁾		103		103
A&A Global Imports, LLC		376		566
Action Point, Inc		500		567
Advanced Web Technologies		297		315
Alcanza Clinical Research		125		125
Alpine SG, LLC		105		105
Alpine X		228		228
Aurotech, LLC		427		427
Automated Control Concepts, Inc.		667		667
BCDI Rodeo Dental Buyer, LLC		1,050		1,050
CC Amulet Management, LLC		358		512
Cedar Services Group, LLC		802		802
Certify, Inc.		53		53
ConvenientMD		688		688
Danforth Advisors		26		17
Doxa Insurance Holdings, LLC		344		344
EBS Intermediate, LLC		1,667		1,667
Gener8, LLC		900		900
Groundworks Operations, LLC		99		99
HealthDrive Corporation⁽²⁾		1,624		2,171
iLending LLC		718		718
Integrated Pain Management Medical Group, Inc.		442		442
IRC Opco LLC		824		824
Lash Opco LLC		370		441
Lighthouse Behavioral Health Solutions, LLC		1,145		-
Lighthouse Lab Services		921		921
Loadmaster Derrick & Equipment, Inc.		-		225
MarkLogic Corporation		278		278
Marlin DTC-LS Midco 2, LLC		143		143
Matilda Jane Holdings, Inc.		326		652
Multi Specialty Healthcare LLC		711		711
Newcleus, LLC		435		435
NWN Parent Holdings LLC		478		478
PDFTron Systems Inc.		-		298
QuarterMaster Newco, LLC		365		365
Quorum Health Resources		674		674
Sequoia Consulting Group, LLC		49		49
smarTours, LLC		367		367
Socius Insurance Services, Inc.		525		525
SolutionReach, Inc.		933		933
SuperHero Fire Protection, LLC		283		327
Technology Partners, LLC		747		747
The Mulch & Soil Company, LLC		522		522
TMA Buyer, LLC		385		385
Tricor Borrower, LLC		288		288
TriStrux, LLC		543		925
		22,911		24,079
Unfunded commitments to investments in funds
Freeport Financial SBIC Fund LP		1,419		680
Gryphon Partners 3.5, L.P.		363		363
		1,782		1,043
Total unfunded commitments	$	44,151	$	42,482

⁽¹⁾	The Company had sole discretion as to whether to lend under this revolving commitment.

⁽²⁾	Includes amounts set aside for issued standby letters of credit.

The changes in fair value of the Company’s unfunded commitments are considered to be immaterial as the yield determined at the time of underwriting is expected to be materially consistent with the yield upon funding.

9. Distributions

The Company has elected to be taxed as a RIC under Subchapter M of the Code. In order to maintain its status as a RIC, the Company is required to distribute annually to its stockholders at least 90% of its investment company taxable income. To avoid a 4% excise tax on undistributed earnings, the Company is required to distribute each calendar year the sum of (i) 98% of its ordinary income for such calendar year, (ii) 98.2% of its capital gain net income for the one-year period ending October 31 of that calendar year and (iii) any income recognized, but not distributed, in preceding years and on which the Company paid no federal income tax.

The Company’s quarterly distributions, if any, will be determined by its board of directors. The Company intends to make distributions to stockholders on a quarterly basis of substantially all of its net investment income. Although the Company intends to make distributions of net realized capital gains, if any, at least annually, out of assets legally available for such distributions, the Company may in the future decide to retain such capital gains for investment. In addition, the extent and timing of special dividends, if any, will be determined by its board of directors and will largely be driven by portfolio specific events and tax considerations at the time.

In addition, the Company may be limited in its ability to make distributions due to the BDC asset coverage test for borrowings applicable to the Company as a BDC under the 1940 Act.

The following table summarizes the Company’s recent distributions declared and paid or to be paid on all shares, including distributions reinvested, if any:

Date Declared	Record Date	Payment Date	Amount Per Share
March 2, 2021	March 15, 2021	March 31, 2021	$	0.10
May 4, 2021	June 15, 2021	June 30, 2021	$	0.10
August 3, 2021	September 15, 2021	September 30, 2021	$	0.10
November 2, 2021	December 15, 2021	December 31, 2021	$	0.10
March 1, 2022	March 15, 2022	March 31, 2022	$	0.10
May 5, 2022	June 15, 2022	June 30, 2022	$	0.10

The Company may not be able to achieve operating results that will allow it to make distributions at a specific level or to increase the amount of these distributions from time to time. If the Company does not distribute a certain percentage of its income annually, it will suffer adverse tax consequences, including possible loss of its status as a regulated investment company. The Company cannot assure stockholders that they will receive any distributions at a particular level.

The Company maintains an “opt in” dividend reinvestment plan for its common stockholders. As a result, unless stockholders specifically elect to have their dividends automatically reinvested in additional shares of common stock, stockholders will receive all such dividends in cash. There were no dividends reinvested for the three months ended March 31, 2022 and 2021.

Under the terms of the dividend reinvestment plan, dividends will primarily be paid in newly issued shares of common stock. However, the Company reserves the right to purchase shares in the open market in connection with the implementation of the plan. This feature of the plan means that, under certain circumstances, the Company may issue shares of our common stock at a price below net asset value per share, which could cause the Company’s stockholders to experience dilution.

Distributions in excess of the Company’s current and accumulated earnings and profits would generally be treated as a return of capital to the extent of a stockholder’s adjusted tax basis in its shares. If a stockholder’s tax basis is reduced to zero, the stockholder would generally treat any remaining distributions in excess of the Company’s current and accumulated earnings and profits as a capital gain. The determination of the tax attributes of our distributions will be made annually as of the end of the fiscal year based upon the Company’s taxable income for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of our distributions for a full year. If the Company had determined the tax attributes of its 2022 distributions as of March 31, 2022, 100% would be from ordinary income, 0% would be from capital gains and 0% would be a return of capital. Each year, a statement on Form 1099-DIV identifying the source of the distribution will be mailed to the Company’s stockholders of record.

The Company may generate qualified interest income and short-term capital gains that may be exempt from United States withholding tax when distributed to foreign accounts. A RIC is permitted to designate distributions in the form of dividends that

represent interest income from U.S. sources (commonly referred to as qualified interest income) and short-term capital gains as exempt from U.S. withholding tax when paid to non-U.S. stockholders with proper documentation.

10. Financial Highlights

	For the three months ended March 31,
	2022			2021
Per Share Data⁽¹⁾:
Net asset value attributable to First Eagle Alternative Capital BDC, Inc., beginning of period	$	6.34		$	6.15
Net investment income, after taxes⁽²⁾		0.10			0.11
Net realized (loss) on investments⁽²⁾		—			(0.10	)
Net change in unrealized appreciation (depreciation) on investments⁽²⁾		(0.24	)		0.32
Benefit of (provision for) taxes on unrealized gain on investments⁽²⁾		0.01			(0.01	)
Net increase (decrease) in net assets resulting from operations attributable to First Eagle Alternative Capital BDC, Inc.		(0.13	)		0.32
Accretive effect of repurchase of common stock		0.01			—
Distributions to stockholders from net investment income		(0.10	)		(0.10	)
Total distributions		(0.10	)		(0.10	)
Net asset value attributable to First Eagle Alternative Capital BDC, Inc., end of period	$	6.12		$	6.37

Per share market value at end of period	$	4.40		$	4.04
Total return⁽³⁾⁽⁵⁾		0.67	%		13.42	%
Shares outstanding at end of period		29,964			30,109
Ratio/Supplemental Data:
Net assets at end of period, attributable to First Eagle Alternative Capital BDC, Inc.	$	183,250		$	191,673
Ratio of total expenses to average net assets, attributable to First Eagle Alternative Capital BDC, Inc.⁽⁴⁾⁽⁶⁾		9.47	%		8.59	%
Ratio of net investment income to average net assets, attributable to First Eagle Alternative Capital BDC, Inc. ⁽⁶⁾		6.35	%		7.06	%
Portfolio turnover, attributable to First Eagle Alternative Capital BDC, Inc.		1.00	%		2.33	%

⁽¹⁾	Includes the cumulative effect of rounding.
⁽²⁾	Calculated based on weighted average common shares outstanding.
⁽³⁾	Total return is based on the change in market price per share during the period. Total return takes into account dividends and distributions, if any, reinvested in accordance with the Company's dividend reinvestment plan.
⁽⁴⁾	For the three months ended March 31, 2022 and 2021 the ratio components included 1.37% and 0.00% of net base management fee, (0.00%) and (0.00%) of net incentive fee, 5.78% and 5.96% of borrowing costs, 2.48% and 1.58% of other operating expenses, and 0.15% and 0.51% of the impact of all taxes, respectively.
⁽⁵⁾	Not annualized
⁽⁶⁾	Annualized, except for taxes and the related impact of incentive fees.

11. Stock Repurchase Program

Stock Repurchase Program

On May 4, 2021, our board of directors authorized a new $10.0 million stock repurchase program with an expiration date of May 5, 2022 and may be modified, suspended or terminated at any time for any reason without prior notice. Effective December 16, 2021, the Company adopted a stock trading plan in accordance with Rule 10b5-1 of the Exchange Act (“Rule 10b5-1”) which expired on March 8, 2022. Effective March 16, 2022, the Company adopted a stock trading plan in accordance with Rule 10b5-1 with an expiration date of May 5, 2022. On May 5, 2022, or board of directors extended the expiration date of the stock repurchase program and stock trading plan to May 6, 2023.

The Company has provided its stockholders with notice of its ability to repurchase shares of its common stock in accordance with 1940 Act requirements. The Company has retired all shares of common stock purchased in connection with the stock repurchase program and plans to retire all shares of common stock that it purchases in the future in connection with the program. The following table summarizes our share repurchases under the Company’s stock repurchase program for the three months ended March 31, 2022 and 2021:

	For the three months ended March 31,
	2022			2021
Dollar amount repurchased⁽¹⁾	$	506		$	—
Shares repurchased		112			—
Average price per share (including commission)	$	4.49		$	—
Weighted average discount to net asset value		29.44	%		—

⁽¹⁾

Effective December 16, 2021, the Company adopted a stock trading plan which expired on March 8, 2022. Effective March 16, 2022, the Company adopted a stock trading plan with an expiration date of May 5, 2022, which was subsequently extended to May 6, 2023. Both plans are in accordance with Rule 10b5-1 of the Exchange Act and all shares repurchased during the three months ended March 31, 2022 were under the 10b5-1 plans.

12. Subsequent Events

From April 1, 2022 through May 9, 2022, the Company made follow-on investments, including revolver and delayed draw fundings, totaling $8,780 with a combined weighted average yield of 6.4%.

In early April 2022, Aurotech, LLC entered into a purchase agreement to sell its common shares. The proceeds of the sale (which includes cash and amounts placed in escrow) were used to pay off and terminate the outstanding credit agreement. The Company realized a loss of approximately $1.8 million as a result of the transaction. This amount was fully offset by a reversal of the unrealized loss recognized on the investment.

On April 19, 2022, Logan JV closed on LJV I MM CLO LLC (the “CLO”) with a 3-year reinvestment period. Logan JV will retain $36,600 of the Subordinated Notes and $21,500 of the Class E Notes issued by the CLO, and the CLO became a wholly-owned subsidiary of Logan JV. Contemporaneously with the close of the CLO, Logan JV SPV was merged into the CLO. Proceeds from the CLO were used to pay off the amounts outstanding under the Logan JV Credit Facility, and the Logan JV Credit Facility was terminated. In connection with the closing of the CLO, it is anticipated that there will be certain one-time costs associated with the refinancing that will reduce the distribution from Logan JV to the Company. Therefore, to partially offset the impact from these one-time charges at the Logan JV, the Adviser voluntarily has agreed to waive the management fee for the second quarter related to the Company up to such amount as is required to maintain at least a 10 cents per share net investment income for such quarter. Such waived amounts will not be subject to recoupment by the Adviser.

On May 5, 2022, the Company’s board of directors declared a dividend of $0.10 per share payable on June 30, 2022 to stockholders of record at the close of business on June 15, 2022.

On May 5, 2022, our board of directors extended the expiration date of the Company’s $10 million stock repurchase program and stock trading plan under Rule 10b5-1 to May 6, 2023. The stock repurchase program may be modified or terminated at any time for any reason without prior notice. We plan to retire all shares of common stock that we purchase in the future in connection with the program.

On May 5, 2022, the Investment Management Agreement was re-approved by its board of directors, including a majority of the Company’s directors who are not interested persons of the Company.

On May 5, 2022, the Company approved a proposal from the Advisor to irrevocably waive $400 of the base management fee earned for the three month period ended March 31, 2022.

Schedule 12-14

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Schedule of Investments in and Advances to Affiliates

As of March 31, 2022

(dollar amounts in thousands)

Type of Investment/Portfolio company ^(1)(2)(9)	Principal/No.of Shares /No.of Units		Purchases ⁽¹¹⁾		Sales and Repayments		Net Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)			Dividends/ Interest Income/ Other Income		Fair Value at March 31, 2022
Control Investments
—52.21% of net asset value
Control Investments - Majority Owned
—52.21% of net asset value
First lien senior secured debt
—8.72% of net asset value
Southeast
—3.60% of net asset value
Loadmaster Derrick & Equipment, Inc. - Senior secured revolving term loan^(3)(12) 11.3% (LIBOR+ 10.3% PIK) due 12/31/2022		11,991	$	1,325	$	—	$	—	$	(1,664	)	$	—	$	6,595
Loadmaster Derrick & Equipment, Inc. - Senior secured term loan 11.3% ^(3)(12) (LIBOR + 10.3% PIK) due 12/31/2022		12,608		—		—		—		—			—		—
Loadmaster Derrick & Equipment, Inc. - Senior secured term loan 13.0% ^(3)(12) (LIBOR + 12% PIK) due 12/31/2022		3,034		—		—		—		—			—		—
Subtotal Southeast			$	1,325	$	—	$	—	$	(1,664	)	$	—	$	6,595

Southwest
—5.12% of net asset value
OEM Group, LLC - Senior secured term loan 8.5% (LIBOR+7.5%) due 9/30/2025		9,385	$	—	$	—	$	—	$	—		$	199	$	9,385
Subtotal Southwest			$	—	$	—	$	—	$	—		$	199	$	9,385

Subtotal first lien senior secured debt			$	1,325	$	—	$	—	$	(1,664	)	$	199	$	15,980

Second lien debt
—4.45% of net asset value
Southeast
—4.45% of net asset value

OEM Group, LLC - Second Lien revolver 10.0% PIK due 9/30/2025 ⁽¹⁰⁾		49,884	$	—	$	—	$	—	$	—		$	—	$	8,151
Subtotal Southeast			$	—	$	—	$	—	$	—		$	—	$	8,151

Subtotal second lien debt			$	—	$	—	$	—	$	—		$	—	$	8,151

Equity Investments
—0.00% of net asset value

Southeast
—0.00% of net asset value
Loadmaster Derrick & Equipment, Inc.⁽⁵⁾		2,956	$	—	$	—	$	—	$	—		$	—	$	—
Loadmaster Derrick & Equipment, Inc.⁽⁶⁾		12,131		—		—		—		—			—		—
Subtotal Southeast			$	—	$	—	$	—	$	—		$	—	$	—

Southwest
—0.00% of net asset value
OEM Group, LLC ⁽⁶⁾		20,000	$	—	$	—	$	—	$	—		$	—	$	—
Subtotal Southwest			$	—	$	—	$	—	$	—		$	—	$	—

Subtotal equity investments			$	—	$	—	$	—	$	—		$	—	$	—

Schedule 12-14

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Schedule of Investments in and Advances to Affiliates

As of March 31, 2022

(dollar amounts in thousands)

Type of Investment/Portfolio company ^(1)(2)(9)	Principal/No.of Shares /No.of Units	Purchases ⁽¹¹⁾		Sales and Repayments		Net Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)			Dividends/ Interest Income/ Other Income		Fair Value at March 31, 2022
Investments in funds
—39.04% of net asset value
Northeast
—39.04% of net asset value
First Eagle Logan JV, LLC ^(4)(6)(7)		$	—	$	—	$	—	$	(1,247	)	$	1,680	$	71,554
Subtotal investments in funds		$	—	$	—	$	—	$	(1,247	)	$	1,680	$	71,554

Total Control Investments - Majority Owned		$	1,325	$	—	$	—	$	(2,911	)	$	1,879	$	95,685

Total Control Investments		$	1,325	$	—	$	—	$	(2,911	)	$	1,879	$	95,685

Investments in funds
—0.00% of net asset value
Northeast
—0.00% of net asset value
First Eagle Greenway Fund, II LLC ^(4)(6)(8)		$	—	$	—	$	—	$	—		$	8	$	—
Subtotal Northeast		$	—	$	—	$	—	$	—		$	8	$	—

Subtotal investments in funds		$	—	$	—	$	—	$	—		$	8	$	—

Total Affiliate Investments		$	—	$	—	$	—	$	—		$	8	$	—

Total Control and Affiliate Investments—— 52.22% of net asset value		$	1,325	$	—	$	—	$	(2,911	)	$	1,887	$	95,685

Schedule 12-14

First Eagle Alternative Capital BDC, Inc. and Subsidiaries

Schedule of Investments in and Advances to Affiliates

As of March 31, 2022

(dollar amounts in thousands)

⁽¹⁾

The principal amount and ownership detail as shown in the Consolidated Schedule of Investments as of March 31, 2022. Unless otherwise noted, all investments are valued using significant unobservable inputs.

⁽²⁾

Variable interest rate investments bear interest in reference to London Interbank offer rate, or LIBOR, or Alternate Base Rate, or ABR, which are effective as of March 31, 2022. LIBOR loans are typically indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option, and ABR rates are typically indexed to the current prime rate or federal funds rate. Each of LIBOR and ABR rates may be subject to interest floors. As of Mach 31, 2022, the 30-day, 90-day and 180-day LIBOR rates were 0.45%, 0.96%, and 1.47%, respectively. As of December 31, 2021, the 30-day, 90-day and 180-day LIBOR rates were 0.10%, 0.21%, and 0.34%.

⁽³⁾

Loan was on non-accrual as of March 31, 2022.

⁽⁴⁾

Investment is measured at fair value using net asset value.

⁽⁵⁾

Preferred Stock.

⁽⁶⁾

Common stock and member interest.

⁽⁷⁾

Together with Perspecta Trident LLC, or Perspecta, an affiliate of Perspecta Trust LLC, the Company invests in First Eagle Logan JV LLC, of Logan JV. Logan JV is capitalized through equity contributions from its members and investment decisions must be unanimously approved by the Logan JV investment committee consisting of one representative from each of the Company and Perspecta.

⁽⁸⁾

Income includes certain fees relating to investment management services provided by the Company, including a base management fee, a performance fee and a portion of the closing fees on each investment transaction.

⁽⁹⁾

⁽¹⁰⁾

Restructured loan for which income is not being recognized as of March 31, 2022.

⁽¹¹⁾

Includes reorganizations and restructuring of investments.

⁽¹²⁾

On January 1, 2021, the loan was placed in forbearance, with a forbearance termination date subsequently amended to December 31, 2022.

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The information contained in this section should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results could differ materially from those contained in or implied by the forward-looking statements. See “Cautionary Statement Regarding Forward-Looking Statements” following the Table of Contents for further information regarding forward-looking statements. Certain amounts and percentages in this discussion and analysis have been rounded for convenience of presentation. Unless otherwise noted, the figures in the following discussions are unaudited.

Overview

First Eagle Alternative Capital BDC, Inc., or we, us, our or the Company, was organized as a Delaware corporation on May 26, 2009 and initially funded on July 23, 2009. We commenced principal operations on April 21, 2010. Our investment activities are managed by First Eagle Alternative Credit, LLC “FEAC” and supervised by our board of directors, a majority of whom are independent of FEAC and its affiliates. Our investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated investments in debt and equity securities of middle market companies.

As of March 31, 2022, we, together with our credit-focused affiliates, collectively had $20.8 billion of assets under management. This amount included our assets, assets of the managed funds and a separate account managed by us, and assets of the collateralized loan obligations (CLOs), separate accounts and various fund formats, as managed by the investment professionals of the Advisor or its consolidated subsidiary.

We are a direct lender to middle market companies and invest primarily in directly originated first lien senior secured loans, including unitranche investments. In certain instances, we also make second lien, subordinated, or mezzanine, debt investments, which may include an associated equity component such as warrants, preferred stock or other similar securities and direct equity investments. Our first lien senior secured loans may be structured as traditional first lien senior secured loans or as unitranche loans. Unitranche structures combine characteristics of traditional first lien senior secured as well as second lien and subordinated loans and our unitranche loans will expose us to the risks associated with second lien and subordinated loans to the extent we invest in the “last-out” tranche or subordinated tranche (or piece) of the unitranche loan. We may also provide advisory services to managed funds.

We are an externally managed, non-diversified, closed-end investment company that has elected to be regulated as a business development company, or BDC, under the Investment Company Act of 1940, as amended, or the 1940 Act. As a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities of private or thinly traded public U.S. companies, cash, cash equivalents, U.S. Government securities and high-quality debt investments that mature in one year or less.

As a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” Under the relevant U.S. Securities and Exchange Commission, or SEC, rules the term “eligible portfolio company” includes all private companies, companies whose securities are not listed on a national securities exchange, and certain public companies that have listed their securities on a national securities exchange and have a market capitalization of less than $250 million, in each case organized in the United States.

We are also registered as an investment adviser under the Investment Advisers Act of 1940, as amended.

Since April 2010, after we completed our initial public offering and commenced principal operations, through March 31, 2022, we have been responsible for making, on behalf of ourselves, our managed funds and separately managed account, over $2.5 billion in aggregate commitments into 181 separate portfolio companies through a combination of both initial and follow-on investments. Since April 2010 through March 31, 2022, we, along with our managed funds and separately managed account, have received $2.0 billion of gross proceeds from the realization of investments. The Company alone has received $1.7 billion of gross proceeds from the realization of its investments during this same time period. As of March 31, 2022, our managed funds, First Eagle Greenway Fund II, LLC, or Greenway II, and its separately managed account, collectively Greenway II, have received $220.9 million, or 118.1% of the committed capital, respectively.

We have elected to be treated for tax purposes as a regulated investment company, or RIC, under Subchapter M of the Internal Revenue Code of 1986, as amended, or the Code. To qualify as a RIC, we must, among other things, meet certain source of income and asset diversification requirements. As a RIC, we generally will not have to pay corporate-level income taxes on any income we distribute to our stockholders.

COVID-19 Developments

The COVID-19 pandemic has evolved since its emergence in early 2020 and as the virus and its variants have spread, many countries have instituted quarantines and restrictions on travel, closing financial markets and/or restricting trading, and limiting operations of non-essential businesses. Such actions have created disruption in global supply chains, and adversely impacted many industries. The COVID-19 pandemic (including the restrictive measures taken in response thereto) has to date (i) created temporary business disruption issues for certain of our portfolio companies, and (ii) materially and adversely impacted the value and performance of certain of our portfolio companies in previous periods.

The uncertainty surrounding the COVID-19 pandemic, including uncertainty regarding new variants of COVID-19 that have emerged and other factors have and may continue to contribute to significant volatility in the global markets. While vaccine availability and uptake has increased, the longer-term macro-economic effects on global supply chains, inflation, labor shortages and wage increases continue to impact many industries, including the collateral underlying certain of our loans. COVID-19 and the current financial, economic and capital markets environment, and future developments in these and other areas present uncertainty and risk with respect to our performance, financial condition, results of operations and ability to pay distributions.

Reference Rate Reform

LIBOR and certain other floating rate benchmark indices to which our floating rate loans and other loan agreements are tied, including, without limitation, the Euro Interbank Offered Rate, or EURIBOR, the Stockholm Interbank Offered Rate, or STIBOR, the Australian Bank Bill Swap Reference Rate, or BBSY, the Canadian Dollar Offered Rate, or CDOR, the Swiss Average Rate Overnight, or SARON, and the Copenhagen Interbank Offering Rate, or CIBOR, or collectively, IBORs, are the subject of recent national, international and regulatory guidance and proposals for reform. As of December 31, 2021, the ICE Benchmark Association, or IBA, ceased publication of all non-USD LIBOR and the one-week and two-month USD LIBOR and, as previously announced, intends to cease publication of remaining U.S. dollar LIBOR settings immediately after June 30, 2023. Further, on March 15, 2022, the Consolidated Appropriations Act of 2022, which includes the Adjustable Interest Rate (LIBOR) Act, was signed into law in the U.S. This legislation establishes a uniform benchmark replacement process for financial contracts that mature after June 30, 2023 which do not contain clearly defined or practicable fallback provisions. The legislation also creates a safe harbor that shields lenders from litigation if they choose to utilize a replacement rate recommended by the Board of Governors of the Federal Reserve.

The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, has identified the Secured Overnight Financing Rate, or SOFR, an index calculated using short-term repurchase agreements backed by Treasury securities, as its preferred alternative rate for USD LIBOR. At this time, it is not possible to predict how markets will respond to SOFR or other alternative reference rates as the transition away from USD LIBOR proceeds. Despite the LIBOR transition in other markets, benchmark rate methodologies in Europe, Australia, Canada, and Switzerland have been reformed and rates such as EURIBOR, STIBOR, BBSY, CDOR, SARON, and CIBOR may persist as International Organization of Securities Commissions compliant reference rates moving forward. However, multi-rate environments may persist in these markets as regulators and working groups have suggested market participants adopt alternative reference rates.

Portfolio Composition and Investment Activity

Portfolio Composition

As of March 31, 2022, we had $400.7 million of portfolio investments (at fair value), which represents a $8.6 million, or 2.2% increase from the $392.1 million (at fair value) as of December 31, 2021. Our portfolio consisted of 77 investments, including Greenway II, as of March 31, 2022, compared to 76 portfolio investments, including Greenway II, as of December 31, 2021. As of March 31, 2022, we had $95.7 million of controlled portfolio investments (at fair value) in three portfolio companies, which represents a $1.6 million, or 1.6%, decrease from $97.3 million (at fair value) as of December 31, 2021 in three portfolio companies. The decrease in controlled portfolio companies was largely the result of a decrease in fair value of First Eagle Logan JV, LLC, or Logan JV. Our average controlling equity position at March 31, 2022 was approximately $29.6 million and $12.1 million at cost and fair value, respectively. Our investment in the Logan JV represented 17.9% and 18.6% of our portfolio investments at fair value as of March 31, 2022 and December 31, 2021, respectively. We are currently limiting new investments in new portfolio companies to 2.5% of our investment portfolio based upon the most recent fair market value.

The following table shows certain portfolio highlights based on cost and fair value (in millions).

	As of
	March 31, 2022				December 31, 2021
	Cost		Fair Value		Cost		Fair Value
Largest portfolio company investment - Logan JV	$	91.9	$	71.6	$	91.9	$	72.8
Largest portfolio company investment - excluding Logan JV, Greenway II, investments where we hold controlling equity position and investments where we hold equity only		12.2		10.3		12.0		10.7
Average portfolio company investment		6.0		5.2		5.9		5.2
Average portfolio company investment - excluding Logan JV, Greenway II, investments where we hold controlling equity position and investments where we hold equity only		4.5		4.5		4.4		4.4
Total investments where we hold controlling equity position and investments where we hold equity only, including Greenway II		69.4		32.1		68.9		36.9

At March 31, 2022 and at December 31, 2021, based upon fair value, 96.3% and 96.0%, respectively, of our income-producing debt investments bore interest based on floating rates, which may be subject to interest rate floors, such as LIBOR.

The following table shows the weighted average yield by investment category at their current cost.

	As of
Description:	March 31, 2022			December 31, 2021
First lien senior secured debt ⁽¹⁾⁽⁴⁾		6.7	%		6.8	%
Second lien debt ⁽¹⁾⁽⁴⁾		1.3	%		1.9	%
Debt and income-producing investments ^(1)(2)(4)		6.4	%		6.4	%
Logan JV ⁽³⁾		7.3	%		7.1	%
All investments including Logan JV ^(1)(3)(4)		6.5	%		6.5	%

⁽¹⁾	Includes all loans on non-accrual status and restructured loans for which income is not being recognized as of March 31, 2022 and December 31, 2021.

⁽²⁾	Includes yields on controlled investments, but excludes the yield on the Logan JV.

⁽³⁾

As of March 31, 2022 and December 31, 2021, the dividends declared and earned of $6.7 million and $6.6 million for the twelve months ended March 31, 2022 and December 31, 2021, respectively, represented a yield to us of 7.3% and 7.1%, respectively, based on average capital invested. We expect the dividend yield to fluctuate as a result of the timing of additional capital invested, the changes in asset yields in the underlying portfolio and the overall performance of the Logan JV investment portfolio.

⁽⁴⁾

Excluding restructured loans for which income is not being recognized as of March 31, 2022, the weighted average yield would be 6.8% on first lien senior secured debt, 11.9% on second lien debt, 6.9% on debt and income-producing investments and 7.0% on all investments including Logan JV. Excluding restructured loans for which income is not being recognized as of December 31, 2021, the weighted average would be 6.9% on first lien senior secured debt, 11.9% on second lien debt, 6.9% on debt and income-producing investments and 7.0% on all investments including Logan JV.

The weighted average yield of our debt investments is not the same as a return on investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before the payment of our fees and expenses. The weighted average yield was computed using the effective interest rates as of March 31, 2022, including accretion of original issue discount and loan origination fees. This weighted average yield reflects the impact of loans on non-accrual status and restructured loans for which income is not being recognized as of March 31, 2022 and December 31, 2021. There can be no assurance that the weighted average yield will remain at its current level. As of March 31, 2022 and December 31, 2021, 0.5% and 0.8%, respectively, of our investment portfolio at fair value was comprised of non-income producing equity and warrant investments. We intend to continue to reduce our non-income producing investments in 2022 and beyond. No assurance can be given that we will be successful in achieving this target.

As of March 31, 2022 and December 31, 2021, portfolio investments, in which we have debt investments, had a median adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, of approximately $15.9 million and $17.3 million, respectively, based on the latest available financial information provided by the portfolio companies for each of these periods. As of March 31, 2022 and December 31, 2021, our median attachment point in the capital structure of our debt investments in portfolio companies is approximately 4.5 times and 4.3 times the portfolio company’s EBITDA, respectively, based on our latest available financial information for each of these periods.

We expect the percentage of our portfolio investments in unsponsored investments to decrease significantly over time as we work through restructurings, which may include providing additional liquidity through revolving loans, and ultimately exit our unsponsored investments. However, these portfolio investments may require follow-on capital as we work through restructurings, which will increase our exposure to these investments. Going forward, we expect unsponsored investments we make, if any, would only be in first lien senior secured investments. As of March 31, 2022, our portfolio of unsponsored debt investments included three investments, excluding our investment in Wheels Up Partners, LLC, which is a non-income producing equity security. Two are performing at or above our expectations and has an Investment Score of 2. The other unsponsored investment has an Investment Score of 5. As of December 31, 2021, our portfolio of unsponsored debt investments included three investments, excluding our investment in Wheels Up Partners, LLC, which is a non-income producing equity security. Two were performing at or above our expectations and have an Investment Score of 2. The other unsponsored investment had an Investment Score of 5.

As of March 31, 2022, we have closed portfolio investments with 105 different sponsors since inception. As of December 31, 2021, we had closed portfolio investments with 105 different sponsors since inception.

The following table summarizes sponsored and unsponsored investments based on amortized cost and fair value (in millions).

	As of March 31, 2022							As of December 31, 2021
	Amortized Cost		Fair Value		Fair Value as % of Total			Amortized Cost		Fair Value		Fair Value as % of Total
Sponsored Investments ⁽¹⁾	$	324.2	$	304.7		92.6	%	$	308.4	$	294.1		92.1	%
Unsponsored Investments ⁽¹⁾		46.9		24.5		7.4	%		46.9		25.2		7.9	%
Total	$	371.1	$	329.2		100.0	%	$	355.3	$	319.3		100.0	%

⁽¹⁾	Excludes Greenway II and the Logan JV.

The following table summarizes the amortized cost and fair value of investments as of March 31, 2022 (in millions).

Description	Amortized Cost		Percentage of Total			Fair Value ⁽¹⁾		Percentage of Total
First lien senior secured debt	$	328.5		71.0	%	$	312.6		78.0	%
Investment in Logan JV		91.9		19.8	%		71.6		17.9	%
Second lien debt		25.6		5.5	%		11.4		2.9	%
Investments in funds		4.2		0.9	%		3.0		0.7	%
Equity investments		12.8		2.8	%		2.1		0.5	%
Total investments	$	463.0		100.0	%	$	400.7		100.0	%

⁽¹⁾

All investments are categorized as Level 3 in the fair value hierarchy, except for 1) certain broadly syndicated loans which are categorized as Level 2 in the fair value hierarchy and noted as such on the Consolidated Schedule of Investments as of March 31, 2022 and 2) investments in funds and the Logan JV, which are excluded from the fair value hierarchy in accordance with ASU 2015-07. These assets are valued at net asset value.

The following table summarizes the amortized cost and fair value of investments as of December 31, 2021 (in millions).

Description	Amortized Cost		Percentage of Total			Fair Value (1)		Percentage of Total
First lien senior secured debt	$	310.5		69.4	%	$	299.6		76.4	%
Investment in Logan JV		91.9		20.5	%		72.8		18.6	%
Second lien debt		27.1		6.1	%		12.9		3.3	%
Investments in funds		4.9		1.1	%		3.7		0.9	%
Equity investments		12.8		2.9	%		3.1		0.8	%
Total investments	$	447.2		100.0	%	$	392.1		100.0	%

⁽¹⁾	All investments are categorized as Level 3 in the fair value hierarchy, except for investments in funds and the Logan JV, which are excluded from the fair value hierarchy in accordance with ASU 2015-07. These assets are valued at net asset value.

We expect the percent of our core assets, which we define as first lien senior secured loans and the Logan JV, to continue to increase as a percent of total investments as we exit non-qualifying BDC assets as defined under the 1940 Act and our controlled equity investments, through sales or repayments, and redeploy these proceeds. We intend to continue our efforts to reposition the portfolio towards these core assets, which we believe will reduce our exposure to portfolio company risks and potential changes in interest rates.

The following is a summary of the industry classification in which we invest as of March 31, 2022 (in millions).

Industry	Amortized Cost		Fair Value		% of Total Portfolio			% of Net Assets
Investment Funds And Vehicles	$	96.1	$	74.5		18.59	%		40.66	%
Healthcare & Pharmaceuticals		70.1		70.4		17.58	%		38.42	%
Consumer Goods: Non-Durable		36.2		32.6		8.13	%		17.77	%
Services: Business		29.9		30.0		7.49	%		16.37	%
High Tech Industries		31.8		30.2		7.54	%		16.48	%
Services: Consumer		28.1		27.7		6.90	%		15.09	%
Capital Equipment		45.7		22.8		5.69	%		12.45	%
Banking		13.5		13.6		3.40	%		7.43	%
Retail		12.5		12.5		3.13	%		6.84	%
Finance		12.2		12.3		3.06	%		6.70	%
Energy: Oil & Gas		23.7		10.1		2.53	%		5.52	%
Insurance		9.4		9.5		2.37	%		5.18	%
Environmental Industries		7.3		7.4		1.84	%		4.02	%
Chemicals, Plastics, & Rubber		7.1		7.2		1.79	%		3.92	%
Construction & Building		6.5		6.6		1.64	%		3.59	%
Telecommunications		6.6		6.5		1.61	%		3.52	%
Containers, Packaging, & Glass		5.4		5.5		1.37	%		2.99	%
Sovereign & Public Finance		5.1		5.1		1.28	%		2.80	%
Media: Broadcasting & Subscription		5.1		5.1		1.27	%		2.77	%
Automotive		3.9		3.9		0.98	%		2.14	%
Hotel, Gaming, & Leisure		3.0		3.0		0.75	%		1.64	%
Transportation: Cargo		2.8		2.8		0.70	%		1.54	%
Transportation: Consumer		1.0		1.4		0.36	%		0.78	%
Total Investments	$	463.0	$	400.7		100.00	%		218.62	%

The following is a summary of the industry classification in which we invest as of December 31, 2021 (in millions).

Industry	Amortized Cost		Fair Value		% of Total Portfolio			% of Net Assets
Investment Funds And Vehicles	$	96.9	$	76.5		19.51	%		40.09	%
Healthcare & Pharmaceuticals		60.6		61.0		15.55	%		31.96	%
Consumer Goods: Non-Durable		36.2		34.9		8.90	%		18.30	%
High Tech Industries		31.9		30.9		7.87	%		16.19	%
Services: Consumer		28.2		27.8		7.10	%		14.59	%
Services: Business		24.6		24.8		6.32	%		12.99	%
Capital Equipment		45.7		22.8		5.82	%		11.97	%
Banking		15.0		15.1		3.86	%		7.94	%
Retail		12.8		12.8		3.25	%		6.69	%
Finance		12.2		12.3		3.15	%		6.45	%
Energy: Oil & Gas		22.5		10.8		2.76	%		5.68	%
Insurance		9.2		9.4		2.40	%		4.93	%
Environmental Industries		7.3		7.4		1.88	%		3.87	%
Chemicals, Plastics, & Rubber		7.1		7.1		1.82	%		3.74	%
Construction & Building		6.5		6.6		1.68	%		3.46	%
Telecommunications		6.2		6.2		1.57	%		3.23	%
Media: Broadcasting & Subscription		5.2		5.2		1.32	%		2.72	%
Containers, Packaging, & Glass		4.8		4.9		1.25	%		2.58	%
Sovereign & Public Finance		4.1		4.1		1.05	%		2.17	%
Automotive		3.9		4.0		1.01	%		2.08	%
Hotel, Gaming, & Leisure		3.0		3.0		0.78	%		1.60	%
Transportation: Cargo		2.3		2.4		0.61	%		1.24	%
Transportation: Consumer		1.0		2.1		0.54	%		1.12	%
Total Investments	$	447.2	$	392.1		100.00	%		205.59	%

Investment Activity

The following is a summary of our investment activity, presented on a cost basis, for the three months ended March 31, 2022 and 2021 (in millions).

	Three months ended March 31,
		2022			2021
New portfolio investments	$	2.3		$	20.3
Existing portfolio investments:
Follow-on investments ⁽¹⁾		12.8			2.2
Delayed draw and revolver investments ⁽¹⁾		4.4			2.7
Total existing portfolio investments		17.2			4.9
Total portfolio investment activity	$	19.5		$	25.2
Number of new portfolio investments	1				6
Number of follow-on investments	4				3
First lien senior secured debt	$	19.5		$	25.2
Total portfolio investments	$	19.5		$	25.2
Weighted average yield of new debt investments		6.5	%		6.6	%
Weighted average yield, including all new income-producing investments		6.5	%		6.6	%

⁽¹⁾	Includes follow-on investments in controlled investments. Refer to Schedule 12-14 for additional detail.

For the three months ended March 31, 2022 and 2021, we had prepayments, amortization payments, and sales of our investments, including any prepayment premiums, totaling $4.0 million and $8.2 million, respectively. Please refer to “Results of Operations — Net Realized Gains and Losses on Investments, net of income tax provision” for additional details surrounding certain investments that were sold.

The following are proceeds received from notable prepayments, sales and other activity related to our investments (in millions):

For the three months ended March 31, 2022

•

Partial repayment of a second lien term loan in Merchants Capital Access, LLC at par, which resulted in total proceeds received of $1.5 million.

For the three months ended March 31, 2021

•

Repayment of a first lien senior secured term and delayed draw loans in AppFire Technologies, LLC at par, which resulted in total proceeds received of $3.2 million, including a prepayment premium of $0.1 million;

•

Repayment of a first lien senior secured term loan in Neiman Marcus Group LTD LLC, which resulted in proceeds of $3.0 million, including a prepayment premium.

Our level of investment activity can vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to middle market companies, the level of merger and acquisition activity, the general economic environment and the competitive environment for the types of investments we make. The frequency and volume of any prepayments may fluctuate significantly from period to period.

Aggregate Cash Flow Realized Gross Internal Rate of Return

Since April 2010, after we completed our initial public offering and commenced principal operations, through March 31, 2022, our fully exited investments have resulted in an aggregate cash flow realized gross internal rate of return to us of 11.0% (based on cash invested of $1.7 billion and total proceeds from these exited investments of $2.1 billion). 76.8% of these exited investments resulted in an aggregate cash flow realized gross internal rate of return to us of 10% or greater. Internal rate of return, or IRR, is a measure of our discounted cash flows (inflows and outflows). Specifically, IRR is the discount rate at which the net present value of all cash flows is equal to zero. That is, IRR is the discount rate at which the present value of total cash invested in our investments is equal to the present value of all realized returns from the investments. Our IRR calculations are unaudited.

Investment Risk

The value of our investments will generally fluctuate with, among other things, changes in prevailing interest rates, federal tax rates, counterparty risk, general economic conditions, the condition of certain financial markets, developments or trends in any particular industry and the financial condition of the issuer. During periods of limited liquidity and higher price volatility, our ability to dispose of investments at a price and time that we deem advantageous may be impaired.

Lower-quality debt securities involve greater risk of default or price changes due to changes in the credit quality of the issuer. The value of lower-quality debt securities often fluctuates in response to company, political, or economic developments and can decline significantly over short periods of time or during periods of general or regional economic difficulty. Lower-quality debt securities can be thinly traded or have restrictions on resale, making them difficult to sell at an acceptable price. The default rate for lower-quality debt securities is likely to be higher during economic recessions or periods of high interest rates.

Logan JV

On December 3, 2014, we entered into an agreement with Perspecta Trident LLC, an affiliate of Perspecta Trust LLC, or Perspecta, to create First Eagle Logan JV, LLC, or Logan JV, a joint venture, which invests primarily in senior secured first lien term loans. All Logan JV investment decisions must be unanimously approved by the Logan JV investment committee consisting of one representative from each of us and Perspecta.

We have determined that Logan JV is an investment company under ASC 946, however, in accordance with such guidance, we will generally not consolidate our investment in a company other than a substantially owned investment company subsidiary or a controlled operating company whose business consists of providing services to us. Accordingly, we do not consolidate our non-controlling interest in Logan JV.

Logan JV is capitalized with equity contributions which are generally called from its members, on a pro-rata basis based on their equity commitments, as transactions are completed. Any decision by the Logan JV to call down on capital commitments requires the explicit authorization of us, coupled with that of Perspecta, and we may withhold such authorization for any reason in our sole discretion.

As of March 31, 2022 and December 31, 2021, Logan JV had the following commitments, contributions and unfunded commitments from its members (in millions).

	As of March 31, 2022
Member	Total Commitments		Contributed Capital		Return of Capital (not recallable)		Unfunded Commitments
First Eagle Alternative Capital BDC, Inc.	$	110.0	$	92.6	$	8.0	$	9.4
Perspecta Trident LLC		27.5		23.2		2.0		2.3
Total Investments	$	137.5	$	115.8	$	10.0	$	11.7

	As of December 31, 2021
Member	Total Commitments		Contributed Capital		Return of Capital (not recallable)		Unfunded Commitments
First Eagle Alternative Capital BDC, Inc.	$	110.0	$	92.6	$	8.0	$	9.4
Perspecta Trident LLC		27.5		23.2		2.0		2.3
Total Investments	$	137.5	$	115.8	$	10.0	$	11.7

Logan JV has a senior credit facility, or the Logan JV Credit Facility, with Deutsche Bank AG and other banks, which was amended on January 9, 2021 to reduce commitments, extend the maturity date, and amend the pricing. As of March 31, 2022 and December 31, 2021, the Logan JV Credit Facility had $225.0 million of commitments subject to leverage and borrowing base restrictions with an interest rate of three month LIBOR (with no LIBOR floor) plus 2.50%. The final maturity date of the Logan JV Credit Facility is July 12, 2025. As of March 31, 2022 and December 31, 2021, Logan JV had $164.0 million and $147.0 million of outstanding borrowings under the credit facility, respectively. At March 31, 2022, the effective interest rate on the Logan JV Credit Facility was 2.88% per annum. On April 19, 2022, Logan JV repaid the Logan JV Credit Facility in full and terminated the facility. See Recent Developments below for additional information.

As of March 31, 2022 and December 31, 2021, Logan JV had total investments at fair value of $276.9 million and $224.4 million, respectively. As of March 31, 2022 and December 31, 2021, Logan JV’s portfolio was comprised of senior secured first lien and second lien loans to 114 and 95 different borrowers, respectively. As of March 31, 2022, there is one loan on non-accrual status with an amortized cost basis and fair value of $1.5 million $0.2 million, respectively. As of December 31, 2021, there was one loan on non-accrual status with an amortized cost and fair value of $1.7 million and $0.1 million, respectively. As of March 31, 2022 and December 31, 2021, Logan JV had unfunded commitments to fund revolver and delayed draw loans to its portfolio companies totaling $3.9 million and $2.5 million, respectively. The portfolio companies in Logan JV’s portfolio are in industries similar to those in which we may invest directly.

Below is a summary of Logan JV’s portfolio, followed by a listing of the individual loans in Logan JV’s portfolio as of March 31, 2022 and December 31, 2021 (dollar amounts in thousands):


	As of March 31, 2022			As of December 31, 2021
First lien secured debt, at par	$	284,245		$	231,727
Second lien debt, at par		2,282			2,282
Total debt investments, at par	$	286,527		$	234,009
Weighted average yield on first lien secured loans ⁽¹⁾		5.5	%		5.5	%
Weighted average yield on second lien loans⁽¹⁾		8.7	%		8.5	%
Weighted average yield on all loans⁽¹⁾		5.5	%		5.5	%
Number of borrowers in Logan JV		114			95
Largest loan to a single borrower ⁽²⁾	$	5,000		$	5,000
Total of five largest loans to borrowers ⁽²⁾	$	22,773		$	22,801

⁽¹⁾	Weighted average yield at their current cost.

⁽²⁾	At current principal amount.

The weighted average yield of Logan JV’s debt investments is not the same as a return on Logan JV investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before the payment of our expenses. The weighted average yield was computed using the effective interest rates as of March 31, 2022 and December 31, 2021, respectively, but excluding the effective rates on investments on non-accrual status, if any. There can be no assurance that the weighted average yield will remain at its current level.

For the three months ended March 31, 2022 and 2021, our share of distributions declared related to our Logan JV LLC equity interest was $1.7 million and $1.6 million, respectively, which amounts are included in dividend income from controlled investments in the Consolidated Statement of Operations and reduction of cost basis on the Consolidated Statement of Assets and Liabilities. As of March 31, 2022 and December 31, 2021, $2.5 million and $2.3 million, respectively, of income related to the Logan JV was included in interest, dividends and fees receivable on the Consolidated Statements of Assets and Liabilities. As of March 31, 2022 and December 31, 2021, $0.0 million and $0.1 million, respectively, of return of capital associated with distributions declared was included in Prepaid expenses and other assets on our Consolidated Statements of Assets and Liabilities. As of March 31, 2022, the distributions declared and earned of $6.7 million for the twelve months ended March 31, 2022, represented a dividend yield to the Company of 7.3% based upon average capital invested. As of December 31, 2021, distributions declared and earned of $6.6 million for the twelve months ended December 31, 2021, represented a dividend yield to the Company of 7.1% based upon average capital invested. We expect the dividend yield to fluctuate as a result of the timing of additional capital invested, the changes in asset yields in the underlying portfolio and the overall performance of the Logan JV investment portfolio.

Logan JV Loan Portfolio as of March 31, 2022

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹²⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost		Fair Value ⁽²⁾
Senior Secured First Lien Term Loans
Australia
Ticketek Pty Ltd	Services: Consumer	5% (LIBOR +4.25%)	11/22/2019	11/26/2026		1,470	$	1,460	$	1,432
Total Australia							$	1,460	$	1,432

Canada
Avison Young Canada Inc.	Services: Business	6.21% (LIBOR +5.75%)	03/07/2019	01/31/2026		3,874	$	3,830	$	3,860
Bausch Health Companies ⁽¹³⁾	Healthcare & Pharmaceuticals	5.75% (SOFR +5.25%)	03/16/2022	01/27/2027		2,000		1,965		1,984
PNI Canada Acquireco Corp	High Tech Industries	4.96% (LIBOR +4.5%)	10/31/2018	10/31/2025		-		1,593		1,581
WildBrain Ltd.	Media: Diversified & Production	5% (LIBOR +4.25%)	03/19/2021	03/24/2028		-		1,946		1,968
Total Canada							$	9,334	$	9,393

Germany
VAC Germany Holding GmbH	Metals & Mining	5.01% (LIBOR +4%)	02/26/2018	03/08/2025		2,880	$	2,874	$	2,768
Total Germany							$	2,874	$	2,768

Luxembourg
Travelport Finance	Services: Consumer	2.51% (LIBOR +1.5%)	09/22/2020	02/28/2025		2,224	$	2,108	$	2,312
Travelport Finance	Services: Consumer	6.01% (LIBOR +5%)	09/22/2020	05/29/2026		1,748		1,727		1,558
Total Luxembourg							$	3,835	$	3,870

United Kingdom
Auxey Bidco Ltd.	Services: Consumer	5.46% (LIBOR +5%)	08/07/2018	06/16/2025		5,000	$	4,904	$	4,870
EG Group	Retail	5% (LIBOR +4%)	03/23/2018	02/07/2025		2,752		2,746		2,715
Total United Kingdom							$	7,650	$	7,585

United States of America
A Place for Mom Inc	Media: Advertising, Printing & Publishing	5.5% (LIBOR +4.5%)	07/28/2017	02/10/2026		3,268	$	3,260	$	3,136
Advanced Integration Technology LP	Aerospace & Defense	5.75% (LIBOR +4.75%)	07/15/2016	04/03/2023		1,891	$	1,886	$	1,798
Advisor Group Holdings Inc	Fire: Finance	4.96% (LIBOR +4.5%)	02/05/2021	07/31/2026		3,142	$	3,149	$	3,132
AG Parent Holdings LLC	High Tech Industries	5.46% (LIBOR +5%)	07/30/2019	07/31/2026		2,607	$	2,591	$	2,568
AgroFresh Inc.	Chemicals, Plastics & Rubber	7.25% (LIBOR +6.25%)	12/01/2015	12/31/2024		1,235	$	1,234	$	1,236
Alcami Carolinas Corp	Healthcare & Pharmaceuticals	4.71% (LIBOR +4.25%)	07/09/2018	07/12/2025		3,860	$	3,851	$	3,589
Alchemy US Holdco 1 LLC	Chemicals, Plastics & Rubber	5.96% (LIBOR +5.5%)	10/01/2018	10/10/2025		1,655	$	1,642	$	1,648
Allen Media, LLC	Media: Broadcasting & Subscription	6.3% (LIBOR +5.5%)	07/29/2021	02/10/2027		3,436	$	3,416	$	3,413
Alpine US Bidco LLC	Beverage, Food & Tobacco	6% (LIBOR +5.25%)	04/28/2021	04/13/2028		1,500	$	1,474	$	1,466
Alvogen Pharma US, Inc.	Healthcare & Pharmaceuticals	6.26% (LIBOR +5.25%)	09/02/2021	12/31/2023		3,107	$	3,024	$	2,915
AMCP Clean Acquisition Co LLC	Wholesale	4.71% (LIBOR +4.25%)	07/10/2018	06/15/2025		2,329	$	2,323	$	1,902
AMCP Clean Acquisition Co LLC	Wholesale	4.71% (LIBOR +4.25%)	07/10/2018	06/15/2025		564	$	562	$	460
American Achievement Corporation ⁽³⁾	Retail	0.75% (LIBOR +6.25%)	02/11/2021	09/30/2026		1,470	$	-	$	-
American Public Education	Services: Consumer	6.25% (LIBOR +5.5%)	03/29/2021	03/29/2027		975	$	957	$	968
ANI Pharmaceuticals, Inc.	Healthcare & Pharmaceuticals	6.75% (LIBOR +6%)	05/24/2021	11/19/2027		3,192	$	3,139	$	3,192
Anne Arundel Dermatology Management, LLC	Healthcare & Pharmaceuticals	6.01% (LIBOR +5%)	10/12/2020	10/16/2025		3,274	$	3,211	$	3,220
Ansira Holdings, Inc.	Media: Diversified & Production	7.51% (LIBOR +6.5%)	04/17/2018	12/20/2024		693	$	680	$	524

Logan JV Loan Portfolio as of March 31, 2022

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹²⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost			Fair Value ⁽²⁾
Ansira Holdings, Inc.	Media: Diversified & Production	7.51% (LIBOR +6.5%)	12/20/2016	12/20/2024		2,081	$	2,088		$	1,581
Anthology	High Tech Industries	5.75% (LIBOR +5.25%)	10/22/2021	10/25/2028		2,993	$	2,880		$	2,912
Arcline FM Holding, LLC	Aerospace & Defense	5.5% (LIBOR +4.75%)	09/02/2021	06/23/2028		1,990	$	1,981		$	1,968
Ascend Performance Materials Operations LLC	Chemicals, Plastics & Rubber	5.76% (LIBOR +4.75%)	08/16/2019	08/27/2026		860	$	849		$	859
Avis Budget Car Rental, LLC	Transportation: Consumer	4% (SOFR +3.5%)	03/15/2022	03/16/2029		3,000	$	2,916		$	2,983
Axiom Global Inc.	Services: Business	5.5% (LIBOR +4.75%)	09/25/2019	10/01/2026		2,985	$	2,958		$	2,918
BCP Qualtek Merger Sub LLC	Telecommunications	7.25% (LIBOR +6.25%)	07/16/2018	07/18/2025		3,650	$	3,615		$	3,541
BCP Renaissance Parent LLC	Energy: Oil & Gas	4.5% (SOFR +3.5%)	02/14/2022	11/02/2026		1,995	$	1,985		$	1,972
Belfor Holdings Inc ⁽¹³⁾	Services: Business	5.21% (LIBOR +4.25%)	03/15/2022	04/04/2026		1,500	$	1,455		$	1,500
Brand Energy & Infrastructure Services, Inc.	Energy: Oil & Gas	5.26% (LIBOR +4.25%)	06/16/2017	06/21/2024		2,858	$	2,848		$	2,737
Canister International Group Inc	Forest Products & Paper	5.21% (LIBOR +4.75%)	12/18/2019	12/21/2026		1,960	$	1,947		$	1,953
Cano Health, LLC ⁽¹³⁾	Healthcare & Pharmaceuticals	4.06% (SOFR +4%)	06/24/2021	11/23/2027		1,980	$	1,976		$	1,954
CCI Buyer, Inc.	Services: Business	4.75% (SOFR +4%)	02/24/2022	12/17/2027		1,995	$	1,971		$	1,972
Clear Balance Holdings, LLC	Fire: Finance	6.76% (LIBOR +5.75%)	07/07/2015	10/05/2023		4,517	$	4,512		$	4,292
Cloudera, Inc.	High Tech Industries	4.25% (LIBOR +3.75%)	08/10/2021	10/08/2028		3,000	$	2,972		$	2,968
CMI Marketing, Inc	Media: Advertising, Printing & Publishing	4.75% (LIBOR +4.25%)	03/19/2021	03/23/2028		1,985	$	1,997		$	1,980
Confluence Technologies, Inc.	High Tech Industries	4.25% (LIBOR +3.75%)	07/22/2021	07/31/2028		2,993	$	2,979		$	2,959
Conyers Park Parent Merger Sub Inc	Beverage, Food & Tobacco	4.4% (SOFR +3.4%)	06/21/2017	07/07/2024		1,287	$	1,285		$	1,283
Dermatology Intermediate Holdings III, Inc ⁽¹³⁾	Healthcare & Pharmaceuticals	4.75% (SOFR +4.25%)	03/23/2022	03/23/2029		315	$	315		$	312
Dermatology Intermediate Holdings III, Inc ⁽¹³⁾	Healthcare & Pharmaceuticals	4.75% (SOFR +4.25%)	03/23/2022	03/23/2029		1,685	$	1,651		$	1,668
Drilling Info Inc.	High Tech Industries	4.71% (LIBOR +4.25%)	07/27/2018	07/30/2025		4,342	$	4,332		$	4,296
Eisner Advisory Group LLC	Banking, Finance, Insurance & Real Estate	6% (LIBOR +5.25%)	08/16/2021	08/13/2028		1,990	$	1,973		$	1,983
Eliassen Group, LLC⁽¹³⁾	Services: Business	0.96% (LIBOR +0%)	03/31/2022	03/31/2028		400	$	365		$	394
Eliassen Group, LLC ⁽¹³⁾	Services: Business	0.96% (LIBOR +0%)	03/31/2022	03/31/2028		1,600	$	1,605		$	1,576
Eliassen Group, LLC	Services: Business	4.71% (LIBOR +4.25%)	10/19/2018	11/05/2024		4,591	$	4,581		$	4,546
Empower Payments Acquisition	Services: Business	5.26% (LIBOR +4.25%)	10/05/2018	10/10/2025		3,870	$	3,865		$	3,823
EyeSouth ^{(4) (12)}	Healthcare & Pharmaceuticals	5.46% (LIBOR +4.5%)	03/15/2021	03/21/2028		295	$	(1	)	$	(3	)
EyeSouth	Healthcare & Pharmaceuticals	6% (LIBOR +4.5%)	03/15/2021	03/12/2028		1,692	$	1,688		$	1,673
FloWorks International LLC	Metals & Mining	6.08% (SOFR +5.75%)	02/18/2022	12/27/2028		2,500	$	2,475		$	2,481
Foley Products Co LLC	Construction & Building	5.25% (SOFR +4.75%)	02/11/2022	02/10/2029		3,000	$	2,971		$	2,985
Gastro Health Holdco, LLC	Healthcare & Pharmaceuticals	5.51% (LIBOR +4.5%)	07/02/2021	07/03/2028		332	$	330		$	330
Gastro Health Holdco, LLC	Healthcare & Pharmaceuticals	5.51% (LIBOR +4.5%)	07/02/2021	07/03/2028		995	$	990		$	989
Global Medical Response, Inc. ⁽¹³⁾	Healthcare & Pharmaceuticals	5.25% (LIBOR +4.25%)	03/16/2022	10/02/2025		1,995	$	1,938		$	1,985
Gold Standard Baking, Inc. ⁽¹⁵⁾	Wholesale	9% (3.5% +5.5%)	05/19/2015	07/23/2022		2,069	$	1,508		$	189
Golden West Packaging Group LLC	Containers, Packaging & Glass	6% (LIBOR +5.25%)	11/29/2021	12/01/2027		2,000	$	1,981		$	1,950
HDT Holdco, Inc.	Aerospace & Defense	6.76% (LIBOR +5.75%)	06/30/2021	07/08/2027		3,850	$	3,761		$	3,749
HEXION INC	Chemicals, Plastics & Rubber	4.83% (SOFR +4.5%)	03/02/2022	03/01/2029		2,000	$	1,950		$	1,960
Highline Aftermarket Acquisition, LLC ⁽¹³⁾	Retail	4.5% (LIBOR +4.5%)	03/21/2022	11/09/2027		941	$	889		$	904
Hoffman Southwest Corporation	Environmental Industries	6.5% (LIBOR +5.5%)	05/16/2019	08/14/2023		1,344	$	1,340		$	1,310
Hornblower Sub LLC	Hotel, Gaming & Leisure	5.5% (LIBOR +4.5%)	03/08/2019	04/28/2025		1,766	$	1,552		$	1,588
Imprivata Inc ⁽¹³⁾	High Tech Industries	4.75% (SOFR +4.25%)	03/16/2022	12/01/2027		2,000	$	1,940		$	1,996
International Textile Group Inc	Consumer goods: Durable	5.21% (LIBOR +5%)	04/20/2018	05/01/2024		906	$	905		$	839
Isagenix International LLC	Services: Consumer	6.75% (LIBOR +5.75%)	04/26/2018	06/14/2025		1,572	$	1,565		$	1,015
LaserShip, Inc.	Transportation: Cargo	5.25% (LIBOR +4.5%)	10/20/2021	04/30/2028		995	$	990		$	992
Lereta, LLC	Fire: Real Estate	6% (LIBOR +5.25%)	07/27/2021	07/27/2028		1,990	$	1,972		$	1,994

Logan JV Loan Portfolio as of March 31, 2022

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹²⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost			Fair Value ⁽²⁾
Lids Holdings, Inc	Retail	5.8% (SOFR +5.5%)	12/03/2021	12/14/2026		969	$	950		$	949
Lifescan Global Corporation	Healthcare & Pharmaceuticals	6.21% (LIBOR +6%)	06/19/2018	10/01/2024		3,652	$	3,591		$	3,497
Liquid Tech Solutions Holdings, LLC	Transportation: Cargo	5.75% (LIBOR +4.75%)	03/18/2021	03/11/2028		2,980	$	2,967		$	2,973
LRS Holdings LLC	Environmental Industries	4.75% (LIBOR +4.25%)	08/13/2021	08/31/2028		2,494	$	2,482		$	2,481
MAG DS Corp.	Aerospace & Defense	6.51% (LIBOR +5.5%)	09/21/2020	04/01/2027		1,167	$	1,122		$	1,062
McAfee Enterprise	High Tech Industries	5.75% (LIBOR +5%)	05/03/2021	07/27/2028		2,991	$	2,964		$	2,973
Miller's Ale House Inc	Hotel, Gaming & Leisure	5.2% (LIBOR +4.75%)	05/24/2018	05/21/2025		2,310	$	2,305		$	2,277
MRI SOFTWARE LLC	Construction & Building	6.51% (LIBOR +5.5%)	01/31/2020	02/10/2026		1,471	$	1,467		$	1,466
NAC Holding Corporation	Fire: Insurance	6.26% (LIBOR +5.25%)	10/02/2020	09/28/2024		3,826	$	3,778		$	3,826
NAPA Management Services Corp	Healthcare & Pharmaceuticals	6.25% (SOFR +5.25%)	02/18/2022	02/23/2029		3,000	$	2,973		$	2,968
New Constellis Borrower LLC	Aerospace & Defense	8.5% (LIBOR +7.5%)	03/27/2020	03/27/2024		331	$	318		$	294
New Insight Holdings Inc	Services: Business	6.5% (LIBOR +5.5%)	12/08/2017	12/20/2024		1,915	$	1,878		$	1,886
NextCare, Inc. ⁽⁵⁾	Healthcare & Pharmaceuticals	5.5% (LIBOR +4.5%)	02/13/2018	06/30/2024		629	$	183		$	182
NextCare, Inc.	Healthcare & Pharmaceuticals	5.5% (LIBOR +4.5%)	02/13/2018	06/30/2024		3,730	$	3,717		$	3,712
Northern Star Holdings Inc.	Utilities: Electric	5.51% (LIBOR +4.5%)	03/28/2018	03/28/2025		4,080	$	4,071		$	4,060
Oak Point Partners, LLC	Banking, Finance, Insurance & Real Estate	6.5% (LIBOR +5.5%)	12/01/2021	12/01/2027		2,843	$	2,803		$	2,800
Odyssey Logistics & Technology Corporation	Transportation: Cargo	5% (LIBOR +4%)	10/06/2017	10/12/2024		1,913	$	1,909		$	1,879
Omni Intermediate Holdings, LLC ⁽⁶⁾	Transportation: Cargo	6% (LIBOR +5%)	11/24/2021	12/30/2026		193	$	80		$	80
Omni Intermediate Holdings, LLC	Transportation: Cargo	6.01% (LIBOR +5%)	11/24/2021	12/30/2026		1,798	$	1,783		$	1,785
Options Technology ^{(7) (12)}	Services: Business	5.71% (LIBOR +4.75%)	10/29/2021	12/26/2025		606	$	(3	)	$	-
Options Technology	Services: Business	5.75% (LIBOR +4.75%)	10/29/2021	12/27/2025		2,446	$	2,419		$	2,446
Orion Business Innovations	High Tech Industries	5.51% (LIBOR +4.5%)	10/18/2018	10/21/2024		548	$	545		$	548
Orion Business Innovations	High Tech Industries	5.51% (LIBOR +4.5%)	03/04/2019	10/21/2024		808	$	805		$	808
Orion Business Innovations	High Tech Industries	5.51% (LIBOR +4.5%)	10/18/2018	10/21/2024		1,873	$	1,865		$	1,873
Osmosis Buyer Limited ⁽¹³⁾	Services: Consumer	4.5% (SOFR +4%)	03/21/2022	07/31/2028		2,000	$	1,970		$	1,984
Output Services Group Inc	Services: Business	5.5% (LIBOR +4.5%)	03/26/2018	03/27/2024		4,322	$	4,315		$	3,381
OVG Business Services, LLC	Services: Business	7.25% (LIBOR +6.25%)	10/15/2021	11/20/2028		2,500	$	2,476		$	2,425
Patriot Rail Co LLC	Transportation: Cargo	5.01% (LIBOR +4%)	02/24/2021	10/19/2026		3,430	$	3,453		$	3,432
PH Beauty Holdings III, Inc.	Containers, Packaging & Glass	5.51% (LIBOR +5%)	10/04/2018	09/28/2025		2,895	$	2,880		$	2,736
PLH Group Inc	Energy: Oil & Gas	6.39% (LIBOR +6%)	08/01/2018	07/25/2023		3,318	$	3,296		$	3,281
Portfolio Holding, Inc.	Banking, Finance, Insurance & Real Estate	7.01% (LIBOR +6%)	05/14/2021	12/02/2025		1,985	$	1,953		$	1,985
Portfolio Holding, Inc. ⁽⁸⁾	Banking, Finance, Insurance & Real Estate	7% (LIBOR +6%)	11/15/2021	12/02/2025		417	$	221		$	225
Portfolio Holding, Inc.	Banking, Finance, Insurance & Real Estate	7% (LIBOR +6%)	11/15/2021	12/02/2025		623	$	612		$	623
Portillo's Holdings, LLC	Beverage, Food & Tobacco	6.5% (LIBOR +5.5%)	11/27/2019	09/06/2024		1,950	$	1,940		$	1,948
Precisely	High Tech Industries	4.75% (LIBOR +4%)	06/24/2021	04/24/2028		2,987	$	2,961		$	2,961
Premier Dental Services, Inc. ⁽⁹⁾	Healthcare & Pharmaceuticals	5.3% (LIBOR +4.5%)	08/11/2021	08/18/2028		185	$	104		$	105
Premier Dental Services, Inc.	Healthcare & Pharmaceuticals	5.28% (LIBOR +4.5%)	08/11/2021	08/18/2028		1,810	$	1,802		$	1,805
Pure Fishing Inc	Consumer goods: Non-Durable	4.96% (LIBOR +4.5%)	12/20/2018	12/22/2025		1,164	$	1,139		$	1,109
Quest Software ⁽¹³⁾	High Tech Industries	4.75% (SOFR +4.25%)	03/21/2022	02/01/2029		2,000	$	1,970		$	1,973
Quidditch Acquisition Inc	Beverage, Food & Tobacco	8% (LIBOR +7%)	03/16/2018	03/21/2025		980	$	972		$	956
Red Ventures, LLC	Media: Advertising, Printing & Publishing	2.96% (LIBOR +2.5%)	10/18/2017	11/08/2024		1,972	$	1,965		$	1,952
Reedy Industries Inc.^(11)(12)	Services: Consumer	5.46% (LIBOR +4.5%)	08/24/2021	08/31/2028		299	$	(1	)	$	(2	)
Reedy Industries Inc.	Services: Consumer	5.25% (LIBOR +4.5%)	08/24/2021	08/31/2028		1,697	$	1,689		$	1,684
Restaurant Technologies, Inc. ⁽¹³⁾	Services: Business	4.75% (SOFR +4.25%)	03/17/2022	03/17/2029		2,000	$	1,950		$	1,988
Rocket Software, Inc.	High Tech Industries	4.25% (LIBOR +4.25%)	03/16/2022	11/28/2025		1,995	$	1,965		$	1,973

Logan JV Loan Portfolio as of March 31, 2022

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹²⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost			Fair Value ⁽²⁾
R-Pac International Corp ⁽¹⁰⁾	Containers, Packaging & Glass	6.75% (LIBOR +6%)	11/23/2021	12/29/2027		373	$	(7	)	$	(7	)
R-Pac International Corp	Containers, Packaging & Glass	6.75% (LIBOR +6%)	11/23/2021	12/29/2027		3,000	$	2,943		$	2,940
RSA Security LLC	High Tech Industries	5.5% (LIBOR +4.75%)	04/16/2021	04/27/2028		1,990	$	1,978		$	1,950
RXB Holdings, Inc.	Services: Business	5.25% (LIBOR +4.5%)	07/28/2021	12/20/2027		1,985	$	1,980		$	1,978
Skillsoft Corp.	High Tech Industries	4.75% (LIBOR +4.75%)	03/25/2022	07/14/2028		2,000	$	1,965		$	1,983
Smyrna Ready Mix Concrete LLC⁽¹³⁾	Hotel, Gaming & Leisure	4.5% (SOFR +4%)	03/24/2022	03/23/2029		2,000	$	1,940		$	1,978
Solenis International LP⁽¹³⁾	Chemicals, Plastics & Rubber	5.3% (SOFR +4.5%)	03/31/2022	11/09/2028		2,000	$	1,960		$	1,975
Solera Holdings Inc	Services: Business	4.5% (LIBOR +4%)	03/16/2022	06/02/2028		1,995	$	1,965		$	1,983
SPX FLOW INC⁽¹³⁾	Capital Equipment	5% (SOFR +4.5%)	03/18/2022	03/17/2029		2,000	$	1,930		$	1,951
Stats, LLC ⁽¹³⁾	Hotel, Gaming & Leisure	6.21% (LIBOR +5.25%)	03/30/2022	07/10/2026		1,995	$	1,995		$	1,985
StubHub	High Tech Industries	4.75% (LIBOR +4.25%)	07/21/2021	02/12/2027		1,493	$	1,486		$	1,487
Teneo Holdings LLC	Services: Business	6.25% (SOFR +5.25%)	07/15/2019	07/11/2025		3,984	$	3,928		$	3,957
Titan Sub LLC	Aerospace & Defense	5.46% (LIBOR +5%)	09/19/2019	09/21/2026		3,184	$	3,161		$	3,183
Upstream Newco, Inc.	Healthcare & Pharmaceuticals	4.59% (LIBOR +4.25%)	07/22/2021	11/20/2026		3,867	$	3,857		$	3,851
VeriFone Systems, Inc.⁽¹³⁾	Services: Business	4.96% (LIBOR +4%)	03/16/2022	08/20/2025		2,000	$	1,938		$	1,975
W3 Topco LLC	Energy: Oil & Gas	7.1% (LIBOR +6%)	08/13/2019	08/16/2025		1,328	$	1,276		$	1,296
Yak Access LLC	Energy: Oil & Gas	5.51% (LIBOR +5%)	06/29/2018	07/11/2025		2,550	$	2,514		$	2,272
Zenith American Holding, Inc.	Services: Business	6.26% (LIBOR +5.25%)	03/11/2019	12/13/2024		2,466	$	2,463		$	2,466
Zenith American Holding, Inc.	Services: Business	6.25% (LIBOR +5.25%)	03/11/2019	12/13/2024		123	$	122		$	123
Total United States of America							$	255,042		$	249,698

Total Senior Secured First Lien Term Loans							$	280,195		$	274,746

Second Lien Term Loans
United States of America
ASP MSG Acquisition Co Inc	Beverage, Food & Tobacco	8.51% (LIBOR +7.5%)	06/23/2021	08/16/2025		2,000	$	1,976		$	2,010
New Constellis Borrower LLC	Aerospace & Defense	12% (LIBOR +11%)	03/27/2020	03/27/2025		282		133			133
Total United States of America							$	2,109		$	2,143

Total Second Lien Term Loans							$	2,109		$	2,143

Total Investments							$	282,304		$	276,889


Cash equivalents
Dreyfus Government Cash Management Fund								15,114			15,114
Other cash accounts								579			579
Total Cash equivalents							$	15,693		$	15,693

⁽¹⁾	Variable interest rates indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option. LIBOR rates are subject to interest rate floors.
⁽²⁾	Represents fair value in accordance with ASC Topic 820.
⁽³⁾	Represents a revolver commitment of $1,469,807, which was unfunded as of March 31, 2022. Issuer pays 0.75% unfunded commitment fee on revolver term loan and/or revolving loan facilities.

Logan JV Loan Portfolio as of March 31, 2022

(dollar amounts in thousands)

⁽⁴⁾	Represents a delayed draw commitment of $295,455 which was unfunded as of March 31, 2022. Issuer pays 4.50% unfunded commitment fee on revolver term loan and/or revolving loan facilities.
⁽⁵⁾	Represents a delayed draw commitment of $628,795, of which $443,545 was unfunded as of March 31, 2022. Unfunded amounts of a delayed draw position have a rate than the contractual fully funded rate. Issuer pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁶⁾	Represents a delayed draw commitment of $192,893, of which $111,675 was unfunded as of March 31, 2022. Unfunded amounts of a delayed draw position have a have a rate than the contractual fully funded rate. Issuer pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁷⁾	Represents a delayed draw commitment of $605,958, which was unfunded as of March 31, 2022. Issuer pays 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁸⁾	Represents a delayed draw commitment of $416,667, of which $191,667 was unfunded as of March 31, 2022. Unfunded amounts of a delayed draw position have a rate than the contractual fully funded rate. Issuer pays 1.00% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽⁹⁾	Represents a delayed draw commitment of $184,921, of which $79,630 was unfunded as of March 31, 2022. Unfunded amounts of a delayed draw position have a rate than the contractual fully funded rate. Issuer pays 4.50% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽¹⁰⁾	Represents a delayed draw commitment of $373,134, which was unfunded as of March 31, 2022. Issuer pays 0.5% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽¹¹⁾	Represents a delayed draw commitment of $299,252, which was unfunded as of March 31, 2022. Issuer pays 4.5% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.
⁽¹²⁾	Unfunded amount will start to accrue interest when the position is funded. 3 month LIBOR as of March 31, 2022 or LIBOR floor is shown to reflect possible projected interest rate.
⁽¹³⁾	Unsettled trade will start to accrue interest when the position is settled. 3 month LIBOR as of March 31, 2022 or LIBOR floor is shown to reflect possible projected interest rate.
⁽¹⁴⁾	All investments are pledged as collateral for loans payable unless otherwise noted.
⁽¹⁵⁾	Loan was on non-accrual as of March 31, 2022.

Logan JV Loan Portfolio as of December 31, 2021

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹²⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost		Fair Value ⁽²⁾
Senior Secured First Lien Term Loans
Australia
Ticketek Pty Ltd	Services: Consumer	5% (LIBOR +4.25%)	11/22/2019	11/26/2026		1,474	$	1,463	$	1,432
Total Australia							$	1,463	$	1,432

Canada
Avison Young Canada Inc.	Services: Business	5.97% (LIBOR +5.75%)	03/07/2019	01/31/2026		3,884	$	3,836	$	3,863
PNI Canada Acquireco Corp	High Tech Industries	4.6% (LIBOR +4.5%)	10/31/2018	10/31/2025		1,597		1,593		1,596
WildBrain Ltd.	Media: Diversified & Production	5% (LIBOR +4.25%)	03/19/2021	03/24/2028		-		1,950		1,983
Total Canada							$	7,379	$	7,442

Germany
Rhodia Acetow	Consumer goods: Non-Durable	6.5% (LIBOR +5.5%)	04/21/2017	05/31/2023		955	$	952	$	895
VAC Germany Holding GmbH	Metals & Mining	5% (LIBOR +4%)	02/26/2018	03/08/2025		2,888		2,881		2,823
Total Germany							$	3,833	$	3,718

Luxembourg
Travelport Finance (Luxembourg) S.a r.l.	Services: Consumer	2.5% (LIBOR +1.5%)	09/22/2020	02/28/2025		2,184		2,058		2,251
Travelport Finance (Luxembourg) S.a r.l.	Services: Consumer	5.22% (LIBOR +5%)	09/22/2020	05/29/2026		1,745		1,723		1,458
Total Luxembourg							$	3,781	$	3,709

United Kingdom
Auxey Bidco Ltd.	Services: Consumer	5.16% (LIBOR +5%)	08/07/2018	06/16/2025		5,000	$	4,896	$	4,843
EG Group	Retail	4.22% (LIBOR +4%)	03/23/2018	02/07/2025		2,759		2,753		2,753
Total United Kingdom							$	7,649	$	7,596

United States of America
A Place for Mom Inc	Media: Advertising, Printing & Publishing	4.75% (LIBOR +3.75%)	07/28/2017	8/10/2024		3,830	$	3,822	$	3,777
Advanced Integration Technology LP	Aerospace & Defense	5.75% (LIBOR +4.75%)	07/15/2016	04/03/2023		1,895		1,892		1,782
Advisor Group Holdings Inc	Fire: Finance	4.6% (LIBOR +4.5%)	02/05/2021	07/31/2026		3,150		3,158		3,163
AG Parent Holdings LLC	High Tech Industries	5.1% (LIBOR +5%)	07/30/2019	07/31/2026		2,613		2,596		2,610
AgroFresh Inc.	Chemicals, Plastics & Rubber	7.25% (LIBOR +6.25%)	12/01/2015	12/31/2024		1,238		1,237		1,249
Alcami Carolinas Corp	Healthcare & Pharmaceuticals	4.39% (LIBOR +4.25%)	07/09/2018	7/12/2025		3,870		3,860		3,551
Alchemy US Holdco 1 LLC	Chemicals, Plastics & Rubber	5.6% (LIBOR +5.5%)	10/01/2018	10/10/2025		1,655		1,641		1,656
Allen Media, LLC	Media: Broadcasting & Subscription	5.72% (LIBOR +5.5%)	07/29/2021	02/10/2027		3,445		3,423		3,448
Alpine US Bidco LLC	Beverage, Food & Tobacco	6% (LIBOR +5.25%)	04/28/2021	04/13/2028		1,508		1,480		1,504
Alvogen Pharma US, Inc.	Healthcare & Pharmaceuticals	6.25% (LIBOR +5.25%)	09/02/2021	12/31/2023		3,148		3,052		3,018
AMCP Clean Acquisition Co LLC	Wholesale	4.35% (LIBOR +4.25%)	07/10/2018	06/15/2025		2,335		2,329		1,951
AMCP Clean Acquisition Co LLC	Wholesale	4.35% (LIBOR +4.25%)	07/10/2018	06/15/2025		565		564		472
American Achievement Corporation^{(3) (15)}	Retail	7.25% (LIBOR +6.25%)	02/11/2021	09/30/2026		1,470		-		-
American Public Education	Services: Consumer	6.25% (LIBOR +5.5%)	03/29/2021	09/01/2027		988		969		980
ANI Pharmaceuticals, Inc.	Healthcare & Pharmaceuticals	6.75% (LIBOR +6%)	05/24/2021	05/24/2027		2,000		1,961		2,009
Anne Arundel Dermatology Management, LLC⁽⁴⁾	Healthcare & Pharmaceuticals	7% (LIBOR +6%)	10/12/2020	10/16/2025		1,358		1,233		1,234

Logan JV Loan Portfolio as of December 31, 2021

(dollar amounts in thousands)

Type of Investment/

Portfolio company⁽¹²⁾

Industry

Interest Rate ⁽¹⁾

Initial

Acquisition

Date

Maturity

Date

Principal

Amortized

Cost

Fair

Value ⁽²⁾

Anne Arundel Dermatology Management, LLC ^{(5) (15)}

Healthcare & Pharmaceuticals

8.75% (LIBOR +6.5%)

10/12/2020

10/16/2025

451

)

Anne Arundel Dermatology Management, LLC

Healthcare & Pharmaceuticals

7.5% (LIBOR +6.5%)

10/12/2020

10/16/2025

2,028

1,997

1,995

Ansira Holdings, Inc.

Media: Diversified & Production

7.5% (LIBOR +6.5%)

04/17/2018

12/20/2024

682

680

545

Ansira Holdings, Inc.

Media: Diversified & Production

7.5% (LIBOR +6.5%)

12/20/2016

12/20/2024

2,046

2,039

1,637

Anthology / Blackboard

High Tech Industries

5.75% (LIBOR +5.25%)

10/22/2021

10/25/2028

1,500

1,449

1,476

Arcline FM Holding, LLC

Aerospace & Defense

5.5% (LIBOR +4.75%)

09/02/2021

06/23/2028

1,995

1,985

1,996

Ascend Performance Materials Operations LLC

Chemicals, Plastics & Rubber

5.5% (LIBOR +4.75%)

08/16/2019

08/27/2026

862

851

868

Axiom Global Inc.

Services: Business

5.5% (LIBOR +4.75%)

09/25/2019

10/01/2026

2,992

2,964

2,947

BCP Qualtek Merger Sub LLC

Telecommunications

7.25% (LIBOR +6.25%)

07/16/2018

07/18/2025

3,675

3,638

3,634

Brand Energy & Infrastructure Services, Inc.

Energy: Oil & Gas

5.25% (LIBOR +4.25%)

06/16/2017

06/21/2024

2,865

2,855

2,809

Canister International Group Inc

Forest Products & Paper

4.85% (LIBOR +4.75%)

12/18/2019

12/21/2026

1,965

1,951

1,974

Cano Health, LLC

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

06/24/2021

11/23/2027

1,985

1,980

1,987

Clear Balance Holdings, LLC

Fire: Finance

6.75% (LIBOR +5.75%)

07/07/2015

10/05/2023

4,529

4,523

4,348

Cloudera, Inc.

High Tech Industries

4.25% (LIBOR +3.75%)

08/10/2021

10/08/2028

3,000

2,971

2,996

CMI Marketing, Inc

Media: Advertising, Printing & Publishing

4.75% (LIBOR +4.25%)

03/19/2021

03/23/2028

1,990

2,002

2,012

Confluence Technologies, Inc.

High Tech Industries

4.25% (LIBOR +3.75%)

07/22/2021

07/31/2028

3,000

2,986

2,993

Conyers Park Parent Merger Sub Inc

Beverage, Food & Tobacco

4.75% (LIBOR +3.75%)

06/21/2017

07/07/2024

1,287

1,285

1,298

Drilling Info Inc.

High Tech Industries

4.35% (LIBOR +4.25%)

07/27/2018

07/30/2025

4,353

4,342

4,310

Eisner Advisory Group LLC

Banking, Finance, Insurance & Real Estate

7.5% (LIBOR +6.75%)

08/16/2021

07/28/2028

182

180

182

Eisner Advisory Group LLC

Banking, Finance, Insurance & Real Estate

6% (LIBOR +5.25%)

08/16/2021

08/13/2028

1,813

1,795

1,818

Eliassen Group, LLC

Services: Business

4.35% (LIBOR +4.25%)

10/19/2018

11/05/2024

4,597

4,586

4,551

Empower Payments Acquisition

Services: Business

4.47% (LIBOR +4.25%)

10/05/2018

10/05/2025

3,880

3,875

3,895

EyeSouth ^{(6) (15)}

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

03/15/2021

03/21/2028

295

)

EyeSouth

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

03/15/2021

03/12/2028

1,696

1,692

1,701

Gastro Health Holdco, LLC⁽⁷⁾

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

07/02/2021

07/03/2028

333

268

272

Gastro Health Holdco, LLC

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

07/02/2021

07/03/2028

998

993

1,005

Gold Standard Baking, Inc.⁽¹⁷⁾

Wholesale

7.5% (LIBOR +6.5%)

05/19/2015

07/23/2022

2,096

1,674

Golden West Packaging Group LLC

Containers, Packaging & Glass

6% (LIBOR +5.25%)

11/29/2021

12/01/2027

2,000

1,980

1,990

HDT Holdco, Inc.

Aerospace & Defense

6.5% (LIBOR +5.75%)

06/30/2021

07/08/2027

3,900

3,806

3,866

Hoffman Southwest Corporation

Environmental Industries

6% (LIBOR +5%)

05/16/2019

08/14/2023

1,362

1,356

1,334

Hornblower Sub LLC

Hotel, Gaming & Leisure

5.5% (LIBOR +4.5%)

03/08/2019

04/28/2025

1,771

1,539

1,676

International Textile Group Inc

Consumer goods: Durable

5.13% (LIBOR +5%)

04/20/2018

05/01/2024

913

911

848

Isagenix International LLC

Services: Consumer

6.75% (LIBOR +5.75%)

04/26/2018

06/14/2025

1,605

1,597

1,202

LaserShip, Inc.

Transportation: Cargo

5.25% (LIBOR +4.5%)

10/20/2021

04/30/2028

998

993

1,000

Lereta, LLC

Fire: Real Estate

6% (LIBOR +5.25%)

07/27/2021

07/27/2028

1,995

1,976

1,997

Lids Holdings, Inc

Retail

5.55% (LIBOR +0%)

12/03/2021

12/03/2026

1,000

980

985

Lifescan Global Corporation

Healthcare & Pharmaceuticals

6.13% (LIBOR +6%)

06/19/2018

10/01/2024

2,735

2,707

2,680

Liquid Tech Solutions Holdings, LLC

Transportation: Cargo

5.5% (LIBOR +4.75%)

03/18/2021

03/11/2028

2,987

2,974

2,987

LRS Holdings LLC

Environmental Industries

4.75% (LIBOR +4.25%)

08/13/2021

08/12/2028

2,500

2,488

2,503

MAG DS Corp.

Aerospace & Defense

6.5% (LIBOR +5.5%)

09/21/2020

04/01/2027

1,191

1,143

1,096

McAfee Enterprise

High Tech Industries

5.75% (LIBOR +5%)

05/03/2021

07/27/2028

2,991

2,963

2,987

Miller's Ale House Inc

Hotel, Gaming & Leisure

4.85% (LIBOR +4.75%)

05/24/2018

05/21/2025

2,316

2,310

2,234

MRI Software LLC

Construction & Building

6.5% (LIBOR +5.5%)

01/31/2020

02/10/2026

1,474

1,470

1,473

Logan JV Loan Portfolio as of December 31, 2021

(dollar amounts in thousands)

Type of Investment/

Portfolio company⁽¹²⁾

Industry

Interest Rate ⁽¹⁾

Initial

Acquisition

Date

Maturity

Date

Principal

Amortized

Cost

Fair

Value ⁽²⁾

NAC Holding Corporation

Fire: Insurance

6% (LIBOR +5%)

10/02/2020

09/28/2024

3,836

3,783

3,836

New Constellis Borrower LLC

Aerospace & Defense

8.5% (LIBOR +7.5%)

03/27/2020

03/27/2024

331

316

324

New Insight Holdings Inc

Services: Business

6.5% (LIBOR +5.5%)

12/08/2017

12/20/2024

1,920

1,879

1,899

NextCare, Inc.⁽⁸⁾

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.25%)

02/13/2018

06/30/2024

629

115

117

NextCare, Inc.

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.25%)

02/13/2018

06/30/2024

3,740

3,725

3,721

Northern Star Holdings Inc.

Utilities: Electric

5.75% (LIBOR +4.75%)

03/28/2018

03/28/2025

4,091

4,081

4,101

Oak Point Partners, LLC

Banking, Finance, Insurance & Real Estate

6.5% (LIBOR +5.5%)

12/01/2021

11/30/2027

2,850

2,808

2,807

Odyssey Logistics & Technology Corporation

Transportation: Cargo

5% (LIBOR +4%)

10/06/2017

10/12/2024

1,918

1,913

1,904

Omni Logistics

Transportation: Cargo

6% (LIBOR +5%)

11/24/2021

11/30/2027

172

171

Omni Logistics ⁽⁹⁾

Transportation: Cargo

6% (LIBOR +5%)

11/24/2021

11/30/2027

203

Omni Logistics

Transportation: Cargo

6% (LIBOR +5%)

11/24/2021

12/30/2026

1,620

1,604

1,608

Options Technology ^{(10) (15)}

Services: Business

4.8% (LIBOR +4.75%)

10/29/2021

12/26/2025

606

)

Options Technology

Services: Business

5.75% (LIBOR +4.75%)

10/29/2021

12/27/2025

2,452

2,423

2,421

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

10/18/2018

10/19/2024

549

546

549

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

03/04/2019

10/21/2024

810

806

810

Orion Business Innovations

High Tech Industries

5.5% (LIBOR +4.5%)

10/18/2018

10/19/2024

1,877

1,869

1,877

Output Services Group Inc

Services: Business

5.5% (LIBOR +4.5%)

03/26/2018

03/21/2024

4,322

4,314

3,720

OVG Business Services, LLC

Services: Business

7.25% (LIBOR +6.25%)

10/15/2021

11/20/2028

2,500

2,475

Patriot Rail Co LLC

Transportation: Cargo

4.25% (LIBOR +4%)

02/24/2021

10/19/2026

3,439

3,463

3,456

PH Beauty Holdings III, Inc.

Containers, Packaging & Glass

5.18% (LIBOR +5%)

10/04/2018

09/28/2025

2,903

2,887

2,743

PLH Group Inc

Energy: Oil & Gas

6.15% (LIBOR +6%)

08/01/2018

07/25/2023

3,384

3,357

3,354

Portfolio Holding, Inc.

Banking, Finance, Insurance & Real Estate

7% (LIBOR +6%)

05/14/2021

12/02/2025

1,990

1,956

1,990

Portfolio Holding, Inc. ⁽¹¹⁾

Banking, Finance, Insurance & Real Estate

7% (LIBOR +6%)

11/15/2021

12/02/2025

417

221

225

Portfolio Holding, Inc.

Banking, Finance, Insurance & Real Estate

7% (LIBOR +6%)

11/15/2021

12/02/2025

625

613

625

Portillo's Holdings, LLC

Beverage, Food & Tobacco

6.5% (LIBOR +5.5%)

11/27/2019

09/06/2024

1,955

1,944

1,961

Precisely

High Tech Industries

4.75% (LIBOR +4%)

06/24/2021

04/24/2028

1,995

1,986

1,995

Premier Dental Services, Inc. ⁽¹²⁾

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

08/11/2021

08/18/2028

185

Premier Dental Services, Inc.

Healthcare & Pharmaceuticals

5.25% (LIBOR +4.5%)

08/11/2021

08/18/2028

1,815

1,806

1,818

Pure Fishing Inc

Consumer goods: Non-Durable

4.6% (LIBOR +4.5%)

12/20/2018

12/22/2025

1,167

1,140

1,135

Quidditch Acquisition Inc

Beverage, Food & Tobacco

8% (LIBOR +7%)

03/16/2018

03/21/2025

983

974

970

Red Ventures, LLC

Media: Advertising, Printing & Publishing

2.6% (LIBOR +2.5%)

10/18/2017

11/08/2024

1,977

1,969

1,968

Reedy Industries Inc. ^{(13) (15)}

Services: Consumer

5.25% (LIBOR +4.5%)

08/24/2021

08/31/2028

299

)

Reedy Industries Inc.

Services: Consumer

5.25% (LIBOR +4.5%)

08/24/2021

08/31/2028

1,701

1,693

1,701

R-Pac International Corp ⁽¹⁴⁾

Containers, Packaging & Glass

6.75% (LIBOR +6%)

11/23/2021

01/15/2028

373

R-Pac International Corp

Containers, Packaging & Glass

6.75% (LIBOR +6%)

11/23/2021

01/15/2028

3,000

2,940

RSA Security LLC

High Tech Industries

5.5% (LIBOR +4.75%)

04/16/2021

04/27/2028

1,995

1,982

1,911

RXB Holdings, Inc.

Services: Business

5.25% (LIBOR +4.5%)

07/28/2021

12/20/2027

1,990

1,985

1,996

StubHub

High Tech Industries

4.75% (LIBOR +4.25%)

07/21/2021

02/12/2027

1,496

1,489

1,496

Teneo Holdings LLC

Services: Business

6.25% (LIBOR +5.25%)

07/15/2019

07/11/2025

3,194

3,138

3,208

Titan Sub LLC

Aerospace & Defense

5.1% (LIBOR +5%)

09/19/2019

09/21/2026

3,192

3,168

3,201

Upstream Newco, Inc.

Healthcare & Pharmaceuticals

4.35% (LIBOR +4.25%)

07/22/2021

11/20/2026

3,877

3,866

3,887

W3 Topco LLC

Energy: Oil & Gas

7% (LIBOR +6%)

08/13/2019

08/16/2025

1,775

1,700

1,757

Yak Access LLC

Energy: Oil & Gas

5.18% (LIBOR +5%)

06/29/2018

07/11/2025

2,588

2,548

2,328

Zenith American Holding, Inc.

Services: Business

6.25% (LIBOR +5.25%)

03/11/2019

12/13/2024

2,476

2,473

2,476

Zenith American Holding, Inc.

Services: Business

6.25% (LIBOR +5.25%)

03/11/2019

12/13/2024

123

122

123

Logan JV Loan Portfolio as of December 31, 2021

(dollar amounts in thousands)

Type of Investment/ Portfolio company⁽¹²⁾	Industry	Interest Rate ⁽¹⁾	Initial Acquisition Date	Maturity Date	Principal		Amortized Cost		Fair Value ⁽²⁾
Total United States of America							$	202,359	$	198,360

Total Senior Secured First Lien Term Loans							$	226,464	$	222,257

Second Lien Term Loans
United States of America
ASP MSG Acquisition Co Inc	Beverage, Food & Tobacco	8.25% (LIBOR +7.5%)	06/23/2021	08/16/2025		2,000	$	1,974	$	2,010
New Constellis Borrower LLC	Aerospace & Defense	12% (LIBOR +11%)	03/27/2020	03/27/2025		282		121		182
Total United States of America							$	2,095	$	2,192

Total Second Lien Term Loans							$	2,095	$	2,192

Total Investments							$	228,559	$	224,449


Cash equivalents
Dreyfus Government Cash Management Fund								14,985		14,985
Other cash accounts								735		735
Total Cash equivalents							$	15,720	$	15,720

⁽¹⁾

Variable interest rates indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates, at the borrower’s option. LIBOR rates are subject to interest rate floors.

⁽²⁾	Represents fair value in accordance with ASC Topic 820.

⁽³⁾	Represents a revolver commitment of $1,470, which was unfunded as of December 31, 2021. Issuer pays 0.75% unfunded commitment fee on revolver term loan and/or revolving loan facilities.

⁽⁴⁾

⁽⁵⁾	Represents a revolver commitment of $451, which was unfunded as of December 31, 2021. Issuer pays 0.5% unfunded commitment fee on revolver term loan and/or revolving loan facilities.

⁽⁶⁾	Represents a delayed draw commitment of $295, which was unfunded as of December 31, 2021. Issuer pays 4.5% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽⁷⁾

⁽⁸⁾

⁽⁹⁾

⁽¹⁰⁾	Represents a delayed draw commitment of $606, which was unfunded as of December 31, 2021. Issuer pays 1.0% unfunded commitment fee on delayed draw term loan and/or revolving loan facilities.

⁽¹¹⁾

Logan JV Loan Portfolio as of December 31, 2021

(dollar amounts in thousands)

⁽¹²⁾

⁽¹³⁾	Represents a revolver commitment of $299, which was unfunded as of December 31, 2021. Issuer pays 4.5% unfunded commitment fee on revolver term loan and/or revolving loan facilities.

⁽¹⁴⁾	Represents a revolver commitment of $373, of which $299 was unfunded as of December 31, 2021. Issuer pays 0.5% unfunded commitment fee on revolver term loan and/or revolving loan facilities.

⁽¹⁵⁾	Unfunded amount will start to accrue interest when the position is funded. 3 month LIBOR as of December 31, 2021 or LIBOR floor is shown to reflect possible projected interest rate

⁽¹⁶⁾	All investments are pledged as collateral for loans payable unless otherwise noted.

⁽¹⁷⁾	Loan was on non-accrual as of December 31, 2021.

Below is certain summarized financial information for Logan JV as of March 31, 2022 and December 31, 2021 and for the three months ended March 31, 2022 and 2021:

Selected Balance Sheet Information


	As of March 31, 2022		As of December 31, 2021
	(Dollars in thousands)		(Dollars in thousands)
Assets:
Investments at fair value (cost of $282,304 and $228,559, respectively)	$	276,889	$	224,449
Cash		15,693		15,720
Other assets		1,091		834
Total assets	$	293,673	$	241,003
Liabilities:
Loans payable reported net of unamortized debt issuance costs	$	162,926	$	145,782
Payable for investments purchased		36,834		-
Distribution payable		3,150		2,900
Other liabilities		1,310		1,317
Total liabilities	$	204,220	$	149,999
Members' capital	$	89,453	$	91,004
Total liabilities and members' capital	$	293,673	$	241,003

Selected Statement of Operations Information

	For the three months ended March, 31 2022			For the three months ended March, 31 2021
	(Dollars in thousands)			(Dollars in thousands)
Interest income	$	3,386		$	3,530
Fee income		19			-
Total revenues		3,405			3,530
Credit facility expenses ⁽¹⁾	$	1,467		$	1,493
Other fees and expenses		96			77
Total expenses		1,563			1,570
Net investment income		1,842			1,960
Net realized gain (loss)		13			194
Net change in unrealized (depreciation) appreciation on investments		(1,306	)		4,085
Net increase in members' capital from operations	$	549		$	6,239

⁽¹⁾	As of March 31, 2022, Logan JV had $164,041 of outstanding debt under its credit facility with an effective interest rate of 2.88% per annum. As of December 31, 2021, Logan JV had $147,041 of outstanding debt under its credit facility with an effective interest rate of 2.88% per annum.

OEM Group LLC

In December 2020, OEM completed the sale of all of its principal business operations via two transactions. On December 2, 2020, OEM closed on the sale of certain assets and liabilities of its Arizona based division to Plasma Term LLC. Plasma Therm will be responsible for developing, commercializing, and marketing the newly developed Endeavor M series PVD platform with no further investment required by OEM. OEM is entitled to a series of deferred royalty payments over seven years associated with the sale of its business operations, which are based on the future revenues associated with Plasma Therm’s product and services sales. OEM will receive minimum annual payments for the first four years that will be used to cover certain residual operating costs and service the outstanding debt. These future royalty streams will be used to cover principal and interest on OEM’s outstanding debt. During the

three months ended March 31, 2022 and 2021, the Company made an incremental $0 and $576, respectively, investment in the first lien loan continue to cover near-term operating costs of OEM.

OEM also consummated the sale of certain assets and liabilities of the Pennsylvania based division to a minority shareholder of the company on December 18, 2020. There was no cash consideration exchanged in connection with the transaction.

As of March 31, 2022 and December 31, 2021, the Company holds all outstanding debt and equity of OEM. The fair value of the Company’s investments in OEM are described in Footnote 3 of the consolidated financial statements.

Asset Quality

We employ the use of board observation and information rights, regular dialogue with company management and sponsors, and detailed internally generated monitoring reports to actively monitor performance. Additionally, First Eagle has developed a monitoring template that promotes compliance with these standards and that is used as a tool to assess investment performance relative to plan.

As part of the monitoring process, the Advisor assesses the risk profile of each of our investments and assigns each portfolio investment a score of a 1, 2, 3, 4 or 5.

The investment performance scores, are as follows:

1 – The portfolio investment is performing above our underwriting expectations.

2 – The portfolio investment is performing as expected at the time of underwriting. All new investments are initially scored a 2.

3 – The portfolio investment is operating below our underwriting expectations and requires closer monitoring. The company may be out of compliance with financial covenants, however, principal or interest payments are generally not past due.

4 – The portfolio investment is performing materially below our underwriting expectations and returns on our investment are likely to be impaired. Principal or interest payments may be past due, however, full recovery of principal and interest payments are expected.

5 – The portfolio investment is performing substantially below expectations and the risk of the investment has increased substantially. The company is in payment default and the principal and interest payments are not expected to be repaid in full.

For purposes of clarity, underwriting as referenced herein may be redetermined after the initial investment as a result of a transformative credit event or other material event whereby such initial underwriting is deemed by the Advisor to be no longer appropriate for the purpose of assessing investment performance relative to plan. For any investment receiving a score of a 3 or lower the Advisor will increase their level of focus and prepare regular updates for the investment committee summarizing current operating results, material impending events and recommended actions.

The Advisor monitors and, when appropriate, changes the investment scores assigned to each investment in our portfolio. In connection with our investment valuation process, the Advisor and board of directors review these investment scores on a quarterly basis. Our average portfolio company investment score was 2.10 and 2.11 at March 31, 2022 and December 31, 2021, respectively. The following is a distribution of the investment scores of our portfolio companies at March 31, 2022 and December 31, 2021 (in millions):

	March 31, 2022										December 31, 2021
Investment Score	Amortized Cost		% of Total Portfolio based on Amortized Cost			Fair Value		% of Total Portfolio based on FV			Amortized Cost		% of Total Portfolio based on Amortized Cost			Fair Value		% of Total Portfolio based on FV
1^(a)	$	55.2		11.9	%	$	54.4		13.6	%	$	31.1		7.0	%	$	30.3		7.7	%
2^(b)		312.8		67.6	%		293.9		73.3	%		330.8		74.0	%		314.2		80.1	%
3^(c)		11.7		2.5	%		11.3		2.8	%		19.5		4.4	%		17.6		4.5	%
4^(d)		21.3		4.6	%		15.9		4.0	%		5.1		1.1	%		3.9		1.0	%
5^(e)		62.0		13.4	%		25.2		6.3	%		60.7		13.5	%		26.1		6.7	%
Total	$	463.0		100.0	%	$	400.7		100.0	%	$	447.2		100.0	%	$	392.1		100.0	%

^(a)	As of March 31, 2022 and December 31, 2021, Investment Score “1”, based upon fair value, included $0.0 million and $0.0 million, respectively, of loans to companies in which we also hold equity securities.

^(b)	As of March 31, 2022 and December 31, 2021, Investment Score “2”, based upon fair value, included $13.2 million and $13.3 million, respectively, of loans to companies in which we also hold equity securities.

^(c)	As of March 31, 2022 and December 31, 2021, Investment Score “3”, based upon fair value, included $12.4 million and $14.2 million, respectively, of loans to companies in which we also hold equity securities.

^(d)	As of March 31, 2022 and December 31, 2021, Investment Score “4”, based upon fair value, included $3.5 million and $3.9 million to companies in which we also hold equity securities.

^(e)	As of March 31, 2022 and December 31, 2021, Investment Score “5”, based upon fair value, included $24.1 million and $24.5 million, respectively, of loans to companies in which we also hold equity securities.

Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more and/or when it is no longer probable that principal or interest will be collected. However, we may make exceptions to this policy if the loan has sufficient collateral value and is in the process of collection. As of March 31, 2022, we had loans on non-accrual status with an amortized cost basis of $21.0 million and fair value of $8.2 million. As of December 31, 2021, we had loans on non-accrual status with an amortized cost basis of $19.7 million and fair value of $9.1 million. For additional information, please refer to the Consolidated Schedules of Investments as of March 31, 2022 and December 31, 2021. We record the reversal of any previously accrued income against the same income category reflected in the Consolidated Statement of Operations.

In certain instances, we may enter into an agreement to restructure a loan, where we determined the full balance of principal or interest may not be collectible at the date of origination. As a result of this determination, we do not recognize interest income on these balances. As of March 31, 2022, we have two loans with an amortized cost basis of $27.2 million and fair value of $11.7 million, which meet the above criteria. As of December 31, 2021, we have two loans with an amortized cost basis of $27.2 million and fair value of $12.1 million, which meet the above criteria. For additional information, please refer to the Consolidated Schedules of Investments as of March 31, 2022 and December 31, 2021.

Results of Operations

Comparison of the three months ended March 31, 2022 and 2021

Investment Income

We generate revenues primarily in the form of interest on the debt and other income-producing securities we hold. Other income-producing securities include investments in funds. Our investments in fixed income instruments generally have an expected maturity of five to seven years, and typically bear interest at a fixed or floating rate. Interest on our debt securities is generally payable quarterly. Payments of principal of our debt investments may be amortized over the stated term of the investment, deferred for several years or due entirely at maturity. In some cases, our debt instruments and preferred stock investments may defer payments of dividends or pay interest in-kind, or PIK. Any outstanding principal amount of our debt securities and any accrued but unpaid interest will generally become due at the maturity date. The level of interest income we receive is directly related to the balance of interest-bearing investments multiplied by the weighted average yield of our investments. In addition to interest income, we may receive dividends and other distributions related to our equity investments. We may also generate revenue in the form of fees from the management of Greenway II, prepayment premiums, commitment, loan origination, structuring or due diligence fees, exit fees, amendment fees, portfolio company administration fees, fees for providing significant managerial assistance and consulting fees. These fees may or may not be recurring in nature as part of our normal business operations. We will disclose below what amounts, if any, are material non-recurring fees that have been recorded as income during each respective period.

The following shows the breakdown of investment income for the three months ended March 31, 2022 and 2021 (in millions):

	For the three months ended March 31,
	2022		2021
Interest income on debt securities
Cash interest	$	5.2	$	4.9
PIK interest		0.1		0.1
Prepayment premiums		-		0.1
Net accretion of discounts and other fees		0.2		0.3
Total interest on debt securities		5.5		5.4
Dividend income ⁽¹⁾		1.7		1.6
Other income		0.2		0.2
Total investment income	$	7.4	$	7.2

(1)	Includes dividend income from common equity interests in Logan JV.

The increase in investment income between the three month periods was primarily due to the expansion of our investment portfolio, as well as higher dividend income from Logan JV. The increase in investment income was partially offset by a decrease in net accretion recognized and prepayment premiums received during the period.

The following shows a roll-forward of PIK income activity for the three months ended March 31, 2022 and 2021 (in millions):

	Three months ended March 31,
	2022		2021
Accumulated PIK balance, beginning of period	$	1.3	$	1.2
PIK income capitalized/receivable		0.1		0.1
Accumulated PIK balance, end of period	$	1.4	$	1.3

In certain investment transactions, we may provide advisory services. For services that are separately identifiable and external evidence exists to substantiate fair value, income is recognized as earned. We earned no income from advisory services related to portfolio companies for the three months ended March 31, 2022 and 2021.

Expenses

Our primary operating expenses include the payment of base management fees, borrowing expenses related to our credit facilities and Notes, and expenses reimbursable under the investment management agreement and the allocable portion of overhead under the administration and investment management agreements (“administrator expenses”). The base management fee compensates the Advisor for work in identifying, evaluating, negotiating, closing and monitoring our investments. Our investment management agreement and administration agreement provides that we will reimburse the Advisor for costs and expenses incurred by the Advisor for facilities, office equipment and utilities allocable to the performance by the Advisor of its duties under the agreements, as well as any costs and expenses incurred by the Advisor relating to any administrative or operating services provided by the Advisor to us. We bear all other costs and expenses of our operations and transactions.

The following shows the breakdown of expenses for the three months ended March 31, 2022 and 2021 (in millions):

	For the three months ended March 31,
	2022			2021
Expenses
Interest and fees on Borrowings ⁽¹⁾	$	2.7		$	2.8
Base management fees		1.0			0.9
Other expenses		0.9			0.9
Administrator expenses		0.3			0.2
Total expenses		4.9			4.8
Management fee waiver		(0.4	)		(0.9	)
Total expenses, net of fee waivers		4.5			3.9
Income tax provision, excise and other taxes⁽²⁾		0.0			0.0
Total expenses after taxes	$	4.5		$	3.9

⁽¹⁾	Interest, fees and amortization of deferred financing costs related to our Revolving Facility and Notes.

⁽²⁾	Amounts include the income taxes related to earnings by our consolidated corporate subsidiaries established to hold equity or equity-like portfolio company investments organized as pass-through entities and excise taxes related to our undistributed earnings and other taxes.

The increase in expenses between the three month periods was due primarily to a partial waiver of the management fee during the current period compared to a full waiver during the prior period. We expect certain of our operating expenses, including professional fees and other general and administrative expenses to decline as a percentage of our total assets during periods of growth and increase as a percentage of our total assets during periods of asset declines.

Net Investment Income

Net investment income was $2.9 million, or $0.10 per common share based on a weighted average of 30,011,730 common shares outstanding for the for the three months ended March 31, 2022, as compared to $3.3 million, or $0.11 per common share based on a weighted average of 30,109,384 common shares outstanding for the three months ended March 31, 2021.

The decrease in net investment income between the three month periods is primarily attributable to a partial waiver of the management fee during the current period compared to a full waiver during the prior period. The decrease was partially offset by increased interest income due to an expanded investment portfolio.

Net Realized Gains and Losses on Investments, net of income tax provision

We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specific identification method, without regard to unrealized appreciation or depreciation previously recognized.

The following shows the breakdown of net realized gains and losses for the three months ended March 31, 2022 and 2021 (in millions):

	For the three months ended March 31,
	2022		2021
Alex Toys, LLC⁽¹⁾		—		(1.9	)
Other ⁽²⁾		—		(1.2	)
Net realized gain (losses)	$	-	$	(3.1	)

(1)		On March 31, 2021, we wrote off our investment in Alex Toys, LLC. The realized loss of $1.9 million was offset by a corresponding change in unrealized appreciation in the same amount.
(2)		During the three months ended March 31, 2021, we realized a net loss reflecting the collectability of the remaining escrow and other receivables balance.

Net Change in Unrealized Appreciation (Depreciation) of Investments

Net change in unrealized appreciation (depreciation) primarily reflects the change in portfolio investment values during the reporting period, including the reversal of previously recorded appreciation or depreciation when gains or losses are realized.

The following shows the breakdown in the changes in unrealized appreciation of investments for the three months ended March 31, 2022 and 2021 (in millions):

	Three months ended March 31,
	2022			2021
Gross unrealized appreciation on investments	$	0.3		$	10.0
Gross unrealized depreciation on investments		(7.5	)		(0.3	)
Total	$	(7.2	)	$	9.7

During the three months ended March 31, 2022, our largest decreases in value for the investments still held as of the reporting date were related to a market driven decrease of Logan JV and Loadmaster Derrick, investments where we hold controlling interests, as well as Wheels Up, Matilda Jane, and Aurotech.

During the three months ended March 31, 2021, our largest increases in value for the investments still held as of the reporting date were related to a market driven increase of Logan JV, an investment where we hold a controlling interest, and Wheels Up.

Benefit (Provision) for Taxes on Unrealized Gains on Investments

Certain consolidated subsidiaries of ours are subject to U.S. federal and state income taxes. These taxable entities are not consolidated with us for income tax purposes and may generate income tax liabilities or assets from temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries. For the three months ended March 31, 2022 and 2021, we recognized a benefit and provision for tax on unrealized gains on investments of $0.3 million and $0.3 million for

consolidated subsidiaries, respectively. As of March 31, 2022 and December 31, 2021, $1.4 million and $1.6 million, respectively, were included in deferred tax liability on the Consolidated Statements of Assets and Liabilities relating to deferred tax on unrealized gain on investments. The change in benefit for tax on unrealized gains on investments relates primarily to changes to the unrealized appreciation (depreciation) of the investments held in these taxable consolidated subsidiaries, other temporary differences and a change in the prior year estimates received from certain portfolio companies.

Net Increase (Decrease) in Net Assets Resulting from Operations

Net increase (decrease) in net assets resulting from operations totaled $(4.0) million, or $(0.13) per common share based on a weighted average of 30,011,730 common shares for the three months ended March 31, 2022, as compared to $9.5 million, or $0.32 per common share based on a weighted average of 30,109,384 common shares for the three months ended March 31, 2021.

The changes in net assets from operations between the three month periods is due primarily to significant unrealized gains recognized in the three month period ended March 31, 2021, and unrealized losses on investments recognized in the three month period ended March 31, 2022.

Financial condition, liquidity and capital resources

Cash Flows from Operating and Financing Activities

Our liquidity and capital resources are derived from our borrowings, equity raises and cash flows from operations, including investment sales and repayments, and investment income earned. Our primary use of funds from operations includes investments in portfolio companies, payment of distributions to the holders of our common stock and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our borrowings and the proceeds from the turnover in our portfolio and from public and private offerings of securities to finance our investment objectives, to the extent permitted by the 1940 Act. We are continuously and critically reviewing our liquidity and anticipated capital requirements in light of the uncertainty created by the COVID-19 global pandemic. We expect that if there is another significant disruption in business activity and the financial markets could impact several sources of our liquidity. For example, limited opportunities to successfully exit investments due to, among other things, lower valuations, a lack of potential buyers with the financial resources to pursue acquisitions, and our portfolio companies limited ability to repay their obligations to us, will impact cash flows from operating activities. For more information on the potential impact of the COVID-19 pandemic on our business, see “Item 1A. Risk Factors – Risks in the Current Environment – Major public health issues, and specifically the novel coronavirus COVID-19, could have an adverse impact on our financial condition and results of operations and other aspects of our business” of our Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission on March 3, 2022.

We may raise additional equity or debt capital through both registered offerings off our shelf registration statement and private offerings of securities, by securitizing a portion of our investments or borrowings from credit facilities. To the extent we determine to raise additional equity through an offering of our common stock at a price below net asset value, existing investors will experience dilution.

We borrowed $19.4 million under our Revolving Facility for the three months ended March 31, 2022 and repaid $12.0 million on our Revolving Facility from proceeds received from prepayments and sales and investment income. We borrowed $18.0 million under our Revolving Facility for the three months ended March 31, 2021 and repaid $9.5 million on our Revolving Facility.

Our operating activities (used) provided cash of $(13.2) million and $0.2 million for the three months ended March 31, 2022 and 2021, respectively, primarily in connection with the purchase and sales of portfolio investments.

For the three months ended March 31, 2022, our financing activities included net borrowings of $7.4 million on our Revolving Facility and used $3.0 million for distributions to stockholders, $0.9 million for the payment of financing costs, and $0.5 million for the repurchase of common stock. For the three months ended March 31, 2021, our financing activities included net borrowings of $8.5 million on our Revolving Facility and used $3.0 million for distributions to stockholders and $0.1 million for the payment of financing costs.

As of March 31, 2022 and December 31, 2021, we had cash of $6.1 million and $16.3 million, respectively. We had no cash equivalents as of March 31, 2022 and December 31, 2021.

We believe cash balances, our Revolving Facility capacity, and any proceeds generated from the sale or pay down of investments provides us with the liquidity necessary to fulfill our pipeline in the near future.

Borrowings

The following shows a summary of our Borrowings as of March 31, 2022 and December 31, 2021 (in millions):

	As of
	March 31, 2022									December 31, 2021
Facility	Commitments		Borrowings Outstanding ⁽¹⁾		Weighted Average Borrowings Outstanding⁽²⁾		Weighted Average Interest Rate ⁽⁵⁾			Commitments		Borrowings Outstanding ⁽³⁾		Weighted Average Borrowings Outstanding ⁽⁴⁾		Weighted Average Interest Rate ⁽⁵⁾
Revolving Facility	$	175.0	$	121.5	$	105.5		3.11	%	$	150.0	$	114.1	$	69.8		3.50	%
2022 Notes		-		-		-		0.00	%		-		-		28.5		0.00	%
2023 Notes		-		-		-		0.00	%		-		-		50.5		0.00	%
2026 Notes		111.6		-		111.6		4.90	%		111.6		111.6		45.5		4.90	%
Total	$	286.6	$	121.5	$	217.1		3.97	%	$	261.6	$	225.7	$	194.3		4.19	%

⁽¹⁾	As of March 31, 2022, borrowings outstanding excludes deferred financing costs of $3.0 million and includes an issuance premium of $0.4 million for the 2026 Notes, which are netted and presented as a reduction to the balance outstanding in the Consolidated Statements of Assets and Liabilities.

⁽²⁾	Represents the weighted average borrowings outstanding for the three months ended March 31, 2022.

⁽³⁾	As of December 31, 2021, borrowings outstanding excludes deferred financing costs of $3.2 million and includes an issuance premium of $0.4 million for the 2026 Notes, which are netted and presented as a reduction to the balance outstanding in the Consolidated Statements of Assets and Liabilities.

⁽⁴⁾	Represents the weighted average borrowings outstanding for the year ended December 31, 2021.

⁽⁵⁾	Represents the weighted average interest rate as of March 31, 2022 and December 31, 2021.

Credit Facility

On December 15, 2017, we entered into an amendment, or the Revolving Amendment, to our existing revolving credit agreement, or Revolving Facility. The Revolving Amendment revised the Revolving Facility dated August 19, 2015 to, among other things, extend the maturity date from August 2019 to December 2022 (with a one year term out period beginning in December 2021). The one year term out period is the one year anniversary between the revolver termination date, or the end of the availability period, and the maturity date. During this time, we are required to make mandatory prepayments on our loans from the proceeds we receive from the sale of assets, extraordinary receipts, returns of capital or the issuances of equity or debt. The Revolving Amendment also reduced the size of the revolver commitments from $303.5 million to $275.0 million and terminated the $75.0 million term loan facility.

On March 26, 2019, we entered into Amendment No. 1 which amended our Revolving Facility to, among other things, (i) reduce the size of the commitments thereunder to $190.0 million; (ii) provide a $20.0 million letter of credit subfacility; and (iii) lower the testing levels of certain financial covenants.

On March 13, 2020, we entered into Amendment No. 4 which further amended the Revolving Facility to, among other things, reduce the size of commitments from $190.0 million to $150.0 million.

On April 14, 2020, we entered into Amendment No. 5 which, among other things, (i) permanently reduced the asset coverage test from a minimum of 200% to a minimum of 165%; (ii) permanently reduced shareholder’s equity and obligor’s net worth test from a minimum of $175.0 million each to a minimum of $140.0 million each; (iii) permanently reduced the size of the lender’s commitments under the Revolving Facility from $150.0 million to $120.0 million; and (iv) permanently increased the interest rate by 25 basis points with a mechanism for an additional 25 basis points increase dependent on certain testing levels, as well as added a 50 basis point LIBOR.

On October 16, 2020, we entered into the Third Amended and Restated Senior Secured Revolving Credit Agreement, which among other things, (i) reduced the size of the revolver commitment from $120.0 million to $100.0 million; (ii) increased the applicable margin on LIBOR borrowings from 2.75% to 3.0%; (iii) permanently reduced the asset coverage test from a minimum of 165% to a minimum of 150%; and (iv) extended the maturity date from December 2022 to October 2024 (with a one year term out period beginning in October 2023).

The Revolving Facility includes an accordion feature permitting us to expand the Revolving Facility, if certain conditions are satisfied; provided, however, that the aggregate amount of the Revolving Facility, collectively, is capped. The Revolving Amendment revised the cap from $300.0 million to $200.0 million.

On March 31, 2021, we entered into an Incremental Commitment Agreement which increased the size of the revolver commitment from $100.0 million to $125.0 million. On September 15, 2021, we entered into an Incremental Commitment and Assumption Agreement which further increased the size of the revolver commitment from $125.0 million to $150.0 million.

On March 11, 2022, we entered into Amendment No. 1 to the Third Amended and Restated Senior Secured Revolving Credit Agreement, which among other things, (i) increased the size of the revolver commitment from $150.0 million to $175.0 million; (ii) increased the cap under the accordion feature to $275.0 million; (iii) extended the maturity date from October 2024 to March 2027

(with a one year term out period beginning in October 2026); (iv) replaced the LIBOR reference rate with Term Secured Overnight Financing Rate (“SOFR”) (subject to a 50 basis point floor); and (v) decreased the applicable margin from 3.00% to 2.50% per annum.

For the period up to March 10, 2022, the Revolving Facility, denominated in US dollars, had an interest rate of LIBOR plus 3.0% (with a 0.50% LIBOR floor). Subsequent to March 10, 2022, the Revolving Facility has an interest rate of Term SOFR plus 2.50% (with a 0.50% floor). The non-use fee is 1.0% annually if we use 35% or less of the Revolving Facility and 0.5% annually if we use more than 35% of the Revolving Facility.

As of March 31, 2022, we had USD borrowings of $121.5 million outstanding under the Revolving Facility with a quarter-end interest rate of 3.11%.

The Revolving Facility generally requires payment of interest on a quarterly basis for ABR loans (commonly based on the Prime Rate or the Federal Funds Rate), and at the end of the applicable interest period for Term SOFR loans, the interest rate benchmarks used to determine the variable rates paid on the Revolving Facility. All outstanding principal is due upon each maturity date. The Revolving Facility also requires a mandatory prepayment of interest and principal upon certain customary triggering events (including, without limitation, the disposition of assets or the issuance of certain securities).

Borrowings under the Revolving Facility are subject to, among other things, a minimum borrowing/collateral base. The facilities have certain collateral requirements and/or covenants, including, but not limited to, covenants related to: (a) limitations on the incurrence of additional indebtedness and liens, (b) limitations on certain investments, (c) limitations on certain restricted payments, (d) limitations on the creation or existence of agreements that prohibit liens on certain properties of ours and our subsidiaries, and (e) compliance with certain financial maintenance standards including (i) minimum stockholders’ equity, (ii) a ratio of total assets (less total liabilities not represented by senior securities) to the aggregate amount of senior securities representing indebtedness, of us and our consolidated subsidiaries, of not less than 1.50:1.00, (iii) minimum liquidity, and (iv) minimum net worth. In addition to the financial maintenance standards, described in the preceding sentence, borrowings under the facilities (and the incurrence of certain other permitted debt) are subject to compliance with a borrowing base that applies different advance rates to different types of assets in our portfolio.

We cannot be assured that we will be able to borrow funds under the Revolving Facility at any particular time or at all. We are currently in compliance with all financial covenants under the Revolving Facility.

As of March 31, 2022 and December 31, 2021, the carrying amount of the Company’s outstanding Revolving Facility approximated fair value. The fair value of our Revolving Facility is determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of our Revolving Facility is estimated based upon market interest rates and entities with similar credit risk. As of March 31, 2022 and December 31, 2021, the Revolving Facility would be deemed to be Level 3 of the fair value hierarchy.

Interest expense and related fees, excluding amortization of deferred financing costs, of $1.0 million and $0.6 million were incurred in connection with the Revolving Facility during the three months ended March 31, 2022 and 2021, respectively.

Amortization of deferred financing costs of $0.1 million and $0.2 million, respectively, were incurred in connection with the Revolving Facility for the three months ended March 31, 2022 and 2021. As of March 31, 2022 and December 31, 2021, we had $2.3 million and $1.5 million, respectively, of deferred financing costs related to the Revolving Facility, which is presented as an asset on the Consolidated Statements of Assets and Liabilities.

Recent legislation has modified the 1940 Act by allowing a BDC to increase the maximum amount of leverage it may incur under the 1940 Act from an asset coverage ratio of 200% to an asset coverage ratio of 150%, if certain requirements are met. At our Annual Meeting of Stockholders on June 14, 2019, stockholders approved a proposal to reduce our asset coverage ratio to 150%. Such asset coverage ratio became effective on June 15, 2019. On April 14, 2020, we received lender consent to reduce our asset coverage ratio to 165% and on October 16, 2020, we received lender consent to reduce our asset coverage ratio to 150%. Our asset coverage ratio as of March 31, 2022 was 177%.

Notes

2022 Notes

In December 2015 and November 2016, we completed a public offering of $35.0 million and $25.0 million, respectively, in aggregate principal amount of 6.75% notes due 2022, or the 2022 Notes. The 2022 Notes mature on December 30, 2022 and may be redeemed in whole or in part at any time or from time to time at our option on or after December 30, 2018. The 2022 Notes bear interest at a rate of 6.75% per year payable quarterly on March 30, June 30, September 30 and December 30, of each year, beginning March 30, 2016 and trade on the New York Stock Exchange under the trading symbol “FCRZ”. On June 21, 2021, we redeemed at par

the 2022 Notes with proceeds from the issuance of the 2026 Notes (see below). As a result of this redemption, we recognized a loss on extinguishment of debt of $0.5 million during the year ended December 31, 2021 on the Consolidated Statements of Operations.

2023 Notes

On October 16, 2018, we completed a public offering of $51.6 million in aggregate principal amount of 6.125% notes due 2023 (“2023 Notes”), including the underwriters exercise of their option to purchase an additional $1.6 million to cover overallotments. The 2023 Notes bore interest at a rate of 6.125% per year payable quarterly on March 30, June 30, September 30 and December 30, of each year, beginning December 30, 2018 and traded on the New York Stock Exchange under the trading symbol “FCRW”. On December 22, 2021, we redeemed the 2023 Notes at par with proceeds from the issuance of the 2026 Notes (see below). As a result of this redemption, we recognized a realized loss on extinguishment of debt of $0.8 million during the year ended December 31, 2021 on the Consolidated Statements of Operations.

2026 Notes

On June 2, 2021, we completed a public offering of $69.0 million in aggregate principal amount of 5.00% notes due 2026 (“2026 Notes”), including the underwriters exercise of their option to purchase an additional $9.0 million to cover overallotments. The 2026 Notes mature on May 25, 2026, and may be redeemed in whole or in part at any time or from time to time at our option on or after May 25, 2023. The 2026 Notes bear interest at a rate of 5.00% per year payable quarterly on March 30, June 30, September 30, and December 30, of each year, beginning September 30, 2021 and trade on the New York Stock Exchange under the trading symbol “FCRX”. We used the net proceeds from the issuance of the 2026 Notes to redeem the 2022 Notes and partially repay the Revolving Credit Facility.

On November 17, 2021, we completed a public offering of an additional $42.6 million in aggregate principal amount of 2026 Notes, including the underwriters exercise of their option to purchase an additional $2.6 million to cover overallotments. The Notes were issued at a price of 101% of the aggregate principal amount of the 2026 Notes. The additional 2026 Notes were a further issuance of, fungible with, and rank equally in right of payment with and have the same terms (other than the issue date and public offering price) as the initial issuance of the 2026 Notes in June 2021. The Company used the net proceeds from the subsequent offering of the 2026 Notes to redeem the 2023 Notes.

The Notes are our direct unsecured obligations and rank: (i) pari passu with our other outstanding and future senior unsecured indebtedness; (ii) senior to any of our future indebtedness that expressly provides it is subordinated to the Notes; (iii) effectively subordinated to all our existing and future secured indebtedness (including indebtedness that is initially unsecured to which we subsequently grant security), to the extent of the value of the assets securing such indebtedness, including without limitation, borrowings under our Revolving Facility; (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries.

The Base Indenture, as supplemented by the First, Second and Third Supplemental Indentures (the “Indenture”), contains certain covenants including covenants requiring us to comply with (regardless of whether it is subject to) Section 18 (a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions, whether or not we continue to be subject to such provisions of the 1940 Act, but giving effect, in either case, to any exemptive relief granted to us by the SEC. Currently these provisions generally prohibit us from making additional borrowings, including through the issuance of additional debt or the sale of additional debt securities, unless our asset coverage, as defined in the 1940 Act, equals at least 150% after such borrowings (if certain requirements are met). These covenants are subject to important limitations and exceptions that are described in the Indenture. The Indenture provides for customary events of default and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding Notes in a series may declare such Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period. As of March 31, 2022, we were in compliance with the terms of the Base Indenture and the First, Second and Third Supplemental Indentures governing the Notes. See Note 7 to our consolidated financial statements for more detail on the Notes.

As of March 31, 2022, the carrying amount and fair value of our Notes was $111.6 million and $110.0 million, respectively. As of December 31, 2021, the carrying value and fair value of our Notes was $111.6 million and $114.1 million, respectively. The fair value of our Notes is determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Notes is based on the closing price of the security, which is a Level 2 input under ASC 820 due to the trading volume.

In connection with the issuance of the 2022 Notes, 2023 Notes and 2026 Notes, we incurred $2.6 million, $2.2 million, and

$3.5 million of fees and expenses, respectively. Any of these deferred financing costs are presented as a reduction to the notes payable balance and are being amortized using the effective interest method over the term of the Notes. For the three months ended March 31, 2022 and 2021, we amortized approximately $0.2 million and $0.2 million of deferred financing costs, respectively, which is reflected in amortization of deferred financing costs on the Consolidated Statements of Operations. As of March 31, 2022, we had $3.0 of remaining deferred financing costs on the Notes, which was netted against the $0.4 of unamortized premium on the 2026 Notes and presented as a reduction to the notes payable balance on the Consolidated Statements of Assets and Liabilities. As of December 31, 2021, we had $3.2 million of remaining deferred financing costs on the Notes, which was netted against the $381 of unamortized premium on the 2026 Notes and presented as a reduction to the notes payable balance on our Consolidated Statements of Assets and Liabilities.

For the three months ended March 31, 2022 and 2021, we incurred interest expense on the Notes of approximately $1.4 million and $1.8 million, respectively.

Commitments and Contingencies and Off-Balance Sheet Arrangements

From time to time, we, or the Advisor, may become party to legal proceedings in the ordinary course of business, including proceedings related to the enforcement of our rights under contracts with our portfolio companies. Neither we, nor the Advisor, are currently subject to any material legal proceedings.

Unfunded commitments to provide funds to portfolio companies are not reflected in our Consolidated Statements of Assets and Liabilities. Our unfunded commitments may be significant from time to time. These commitments will be subject to the same underwriting and ongoing portfolio maintenance as are the on-balance sheet financial instruments that we hold. Since these commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. We intend to use cash flow from normal and early principal repayments and proceeds from borrowings and offerings to fund these commitments.

As of March 31, 2022 and December 31, 2021, we have the following unfunded commitments to portfolio companies (in millions):

	As of
	March 31, 2022		December 31, 2021

Unfunded delayed draw facilities
Advanced Web Technologies	$	-	$	0.4
Alcanza Clinical Research		0.3		0.3
Alpine X		0.9		0.9
BCDI Rodeo Dental Buyer, LLC		0.2		0.2
CC Amulet Management, LLC		0.9		0.9
Cedar Services Group, LLC		0.9		0.1
ConvenientMD		1.7		1.7
Doxa Insurance Holdings, LLC		1.4		1.4
Endo1 Partners		0.3		0.5
HealthDrive Corporation		0.1		0.1
Integrated Pain Management Medical Group, Inc.		0.4		0.4
Lighthouse Behavioral Health Solutions, LLC		2.3		—
Lighthouse Lab Services		0.6		0.6
MarkLogic Corporation		0.6		0.6
Multi Specialty Healthcare LLC		0.2		0.2
Newcleus, LLC		1.1		1.3
PDFTron Systems Inc.		—		0.2
Socius Insurance Services, Inc.		1.8		1.8
SuperHero Fire Protection, LLC		0.6		0.6
Technology Partners, LLC		1.0		1.0
TMA Buyer, LLC		1.5		1.5
Tricor Borrower, LLC		1.3		1.3
TriStrux, LLC		1.4		1.4
		19.5		17.4

Unfunded revolving commitments
1-800 Hansons, LLC ⁽¹⁾		0.1		0.1
A&A Global Imports, LLC		0.4		0.6
Action Point, Inc		0.5		0.6
Advanced Web Technologies		0.3		0.3
Alcanza Clinical Research		0.1		0.1
Alpine SG, LLC		0.1		0.1
Alpine X		0.2		0.2
Aurotech, LLC		0.4		0.4
Automated Control Concepts, Inc.		0.8		0.8
BCDI Rodeo Dental Buyer, LLC		1.1		1.1
CC Amulet Management, LLC		0.4		0.5
Cedar Services Group, LLC		0.8		0.8
Certify, Inc.		0.1		0.1
ConvenientMD		0.7		0.7
Danforth Advisors		—		—
Doxa Insurance Holdings, LLC		0.3		0.3
EBS Intermediate LLC		1.7		1.7
Gener8, LLC		0.9		0.9
Groundworks Operations, LLC		0.1		0.1
HealthDrive Corporation⁽²⁾		1.6		2.2
iLending LLC		0.7		0.7
Integrated Pain Management Medical Group, Inc.		0.4		0.4
IRC Opco LLC		0.8		0.8
Lash Opco LLC		0.4		0.4
Lighthouse Behavioral Health Solutions, LLC		1.1		—
Lighthouse Lab Services		0.9		0.9
Loadmaster Derrick & Equipment, Inc.		0.1		0.3
MarkLogic Corporation		0.3		0.3
Marlin DTC-LS Midco 2, LLC		0.1		0.1
Matilda Jane Holdings, Inc.		0.3		0.7
Multi Specialty Healthcare LLC		0.7		0.7
Newcleus, LLC		0.4		0.4
NWN Parent Holdings LLC		0.5		0.5
PDFTron Systems Inc.		—		0.3
QuarterMaster Newco, LLC		0.4		0.4
Quorum Health Resources		0.7		0.7
Sequoia Consulting Group, LLC		—		—
smarTours, LLC		0.4		0.4
Socius Insurance Services, Inc.		0.5		0.5
SolutionReach, Inc.		0.9		0.9
SuperHero Fire Protection, LLC		0.3		0.3
Technology Partners, LLC		0.7		0.7
The Mulch & Soil Company, LLC		0.5		0.5
TMA Buyer, LLC		0.4		0.4
Tricor Borrower, LLC		0.3		0.3
TriStrux, LLC		0.5		0.9
		22.9		24.1
Unfunded commitments to investments in funds
Freeport Financial SBIC Fund LP		1.4		0.7
Gryphon Partners 3.5, L.P.		0.3		0.3
		1.7		1.0
Total unfunded commitments	$	44.1	$	42.5

⁽¹⁾We have sole discretion as to whether to lend under this revolving commitment.

⁽²⁾	Includes amounts set aside for issued standby letters of credit.

100

The changes in fair value of our unfunded commitments are considered to be immaterial as the yield determined at the time of underwriting is expected to be materially consistent with the yield upon funding. We will fund our unfunded commitments from the same sources we use to fund our investment commitments that are funded at the time they are made (which are typically existing cash and cash equivalents and borrowings under our Revolving Facility). We manage our liquidity to ensure that we have available capital to fund our unfunded commitments as necessary.

Distributions

We have elected to be taxed as a RIC under Subchapter M of the Code. In order to maintain our status as a RIC, we are required to distribute, for each taxable year, at least 90% of our investment company taxable income. To avoid a 4% excise tax on undistributed earnings, we are required to distribute each calendar year the sum of (i) 98% of our ordinary income for such calendar year (ii) 98.2% of our capital gain net income for the one-year period ending October 31 of that calendar year and (iii) any income recognized, but not distributed, in preceding years and on which we paid no federal income tax.

Our quarterly distributions, if any, will be determined by our board of directors. We intend to make distributions to stockholders on a quarterly basis of substantially all of our net investment income. Although we intend to make distributions of net realized capital gains, if any, at least annually, out of assets legally available for such distributions, we may in the future decide to retain such capital gains for investment. In addition, the extent and timing of special dividends, if any, will be determined by our board of directors and will largely be driven by portfolio specific events and tax considerations at the time.

In addition, we may be limited in our ability to make distributions due to the BDC asset coverage test for borrowings applicable to us as a BDC under the 1940 Act.

The following table summarizes our recent distributions declared and paid or to be paid on all shares including distributions reinvested, if any:

Date Declared	Record Date	Payment Date	Amount Per Share
March 2, 2021	March 15, 2021	March 31, 2021	$	0.10
May 4, 2021	June 15, 2021	June 30, 2021	$	0.10
August 3, 2021	September 15, 2021	September 30, 2021	$	0.10
November 2, 2021	December 15, 2021	December 31, 2021	$	0.10
March 1, 2022	March 15, 2022	March 31, 2022	$	0.10
May 5, 2022	June 15, 2022	June 30, 2022	$	0.10

We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. If we do not distribute a certain percentage of our income annually, we will suffer adverse tax consequences, including possible loss of our status as a regulated investment company. We cannot assure stockholders that they will receive any distributions at a particular level.

We maintain an “opt in” dividend reinvestment plan for our common stockholders. As a result, unless stockholders specifically elect to have their dividends automatically reinvested in additional shares of common stock, stockholders will receive all such dividends in cash. There were no dividends reinvested for the three months ended March 31, 2022 and 2021.

Under the terms of our dividend reinvestment plan, dividends will primarily be paid in newly issued shares of common stock. However, we reserve the right to purchase shares in the open market in connection with the implementation of the plan. This feature of the plan means that, under certain circumstances, we may issue shares of our common stock at a price below net asset value per share, which could cause our stockholders to experience dilution.

Distributions in excess of our current and accumulated earnings and profits would generally be treated as a return of capital to the extent of the stockholder’s adjusted tax basis in our shares. If a stockholder’s tax basis is reduced to zero, the stockholder would generally treat any remaining distributions in excess of our current and accumulated earnings and profits as a capital gain. The determination of the tax attributes of our distributions will be made annually as of the end of our fiscal year based upon our taxable income for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of our distributions for a full year. Each year, a statement on Form 1099-DIV identifying the source of the distributions will be sent to our U.S. stockholders of record (other than certain exempt recipients). Our board of directors presently intends to declare and pay quarterly distributions. Our ability to pay distributions could be affected by future business performance, liquidity, capital needs, alternative investment opportunities and loan covenants.

101

We may generate qualified interest income and short-term capital gains that may be exempt from United States withholding tax when distributed to foreign accounts. A RIC is permitted to designate distributions in the form of dividends that represent interest income from U.S. sources (commonly referred to as qualified interest income) and short-term capital gains as exempt from U.S. withholding tax when paid to non-U.S. stockholders with proper documentation. As of March 31, 2022, the percentage of 2022 income estimated as qualified interest income for tax purposes was 90.23%.

Stock Repurchase Program and Tender Offer

Stock Repurchase Program

On May 4, 2021, our board of directors authorized a new $10.0 million stock repurchase program with an expiration date of May 5, 2022 and may be modified, suspended or terminated at any time for any reason without prior notice. On May 5, 2022, our board of directors extended the expiration date of the stock repurchase program to May 6, 2023. We provided our stockholders with notice of our ability to repurchase shares of our common stock in accordance with 1940 Act requirements. Effective December 16, 2021, we adopted a stock trading plan in accordance with Rule 10b5-1 of the Exchange Act (“Rule 10b5-1”) which expired on March 8, 2022. Effective March 16, 2022, we adopted a stock trading plan in accordance with Rule 10b5-1 with an expiration date of May 5, 2022, which was also extended to May 6, 2023. We have retired all shares of common stock purchased in connection with the stock repurchase program and plan to retire all shares of common stock that we purchase in the future in connection with the program.

The following table summarizes our share repurchases under our stock repurchase program for the three months ended March 31, 2022 and 2021 (in millions):

	For the three months ended March 31,
	2022			2021
Dollar amount repurchased⁽¹⁾	$	0.5		$	—
Shares repurchased		0.1			—
Average price per share (including commission)	$	4.49		$	—
Weighted average discount to net asset value		29.44	%		—

⁽¹⁾

Effective December 16, 2021, we adopted a stock trading plan which expired on March 8, 2022. Effective March 16, 2022, we adopted a stock trading plan with an expiration date of May 5, 2022, which was subsequently extended to May 6, 2023. Both plans are in accordance with Rule 10b5-1 of the Exchange Act and all shares repurchased during the three months ended March 31, 2022 were under the 10b5-1 plans.

Related Party Transactions

Refer to Note 4 – “Related Party Transactions”, in the Notes to the Consolidated Financial Statements.

Critical accounting policies

For a description of our accounting policies, refer to “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in our 2020 Annual Report on Form 10-K. We consider our most significant accounting policies to be those related to its Valuation of Portfolio Investments, Revenue Recognition, Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation and U.S. Federal Income Taxes, including excise tax. There have been no material changes to our critical accounting policies as described in our 2021 Annual report on Form 10-K.

102

Recent Developments

From April 1, 2022 through May 9, 2022, we made follow-on investments, including revolver and delayed draw fundings, totaling $8.8 million with a combined weighted average yield of 6.4%.

On April 19, 2022, Logan JV closed on a $300.6 million LJV I MM CLO LLC (the “CLO”) with a 3-year reinvestment period. Logan JV will retain $36.6 million of the Subordinated Notes and $21.5 million of the Class E Notes issued by the CLO, and the CLO became a wholly-owned subsidiary of Logan JV. Contemporaneously with the close of the CLO, Logan JV SPV was merged into the CLO. Proceeds from the CLO were used to pay off the amounts outstanding under the Logan JV Credit Facility, and the Logan JV Credit Facility was terminated. In connection with the closing of the CLO, it is anticipated that there will be certain one-time costs associated with the refinancing that will reduce the distribution from Logan JV to the Company. Therefore, to partially offset the impact from these one-time charges at the Logan JV, the Adviser voluntarily has agreed to waive the management fee for the second quarter related to the Company up to such amount as is required to maintain at least a 10 cents per share net investment income for such quarter. Such waived amounts will not be subject to recoupment by the Adviser.

On May 5, 2022, our board of directors declared a dividend of $0.10 per share payable on June 30, 2022 to stockholders of record at the close of business on June 15, 2022.

On May 5, 2022, our board of directors extended the expiration date of the Company’s $10 million stock repurchase program and stock trading plan under Rule 10b5-1, originally approved on May 4, 2021, to May 6, 2023. The stock repurchase program may be modified or terminated at any time for any reason without prior notice. We plan to retire all shares of common stock that we purchase in the future in connection with the program.

On May 5, 2022, the Investment Management Agreement was re-approved by our board of directors, including a majority of our directors who are not interested persons.

On May 5, 2022, we irrevocably waived $400 of the base management fee earned for the three month period ended March 31, 2022.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates. As of March 31, 2022, 96.3% of the debt investments in our portfolio are floating rate loans, based upon fair market value. In the future, we expect other debt investments in our portfolio will have floating rates. These floating rate loans typically bear interest in reference to LIBOR, which are indexed to 30-day, 60-day, 90-day or 180-day LIBOR rates subject to an interest rate floor. As of March 31, 2022, the weighted average interest rate floor on our floating rate loans was 1.02%. Our Revolving Facility is also subject to floating interest rates subject to an interest rate floor of 0.50%.

Based on our March 31, 2022 Consolidated Statement of Assets and Liabilities, the following table shows the annual impact on net income of base rate changes in interest rates (considering interest rate floors for variable rate instruments), which assumes no changes in our investments and borrowings (in millions):

Change in Basis Points	Interest Income		Interest Expense		Net Income⁽¹⁾
Up 300 basis points	$	9.1	$	4.2	$	4.9
Up 200 basis points	$	6.0	$	3.0	$	3.0
Up 100 basis points	$	3.0	$	1.8	$	1.2
Down 300 basis points	$	—	$	—	$	—
Down 200 basis points	$	—	$	—	$	—
Down 100 basis points	$	—	$	—	$	—

(1)	Excludes the impact of incentive fees based on pre-incentive fee net investment income. See “Note 4. — Related Party Transaction” footnote to our consolidated financial statements for the three months ended March 31, 2022 and 2021 for more information on the incentive fee.

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Although we believe 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 balance sheet and other business developments, including borrowings under our Revolving Facility, that could affect net increase in net assets resulting from operations, or net income.

In the future, we may use other standard hedging instruments such as futures, options and forward contacts subject to the requirements of the 1940 Act. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to our portfolio of investments.

From time to time, we may make investments that are denominated in a foreign currency. These investments are translated into U.S. dollars at each balance sheet date, exposing us to movements in foreign exchange rates. We have the ability to borrow in certain foreign currencies under our Revolving Credit Facility. Instead of entering into a foreign exchange forward contract in connection with loans or other investments we have made that are denominated in a foreign currency, we may borrow in that currency to establish a natural hedge against our loan or investment.

Item 4.

Controls and Procedures

Disclosure Controls and Procedures

Our management with the participation of our Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer conducted an evaluation of the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act, as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the period covered by this quarterly report on form 10-Q, our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Acts recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act, that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1.

Legal proceedings

We are not a defendant in any material pending legal proceeding, and no such material proceedings are known to be contemplated. However, from time to time, we may be party to certain legal proceedings incidental to the normal course of our business including the enforcement of our rights under the contracts with our portfolio companies.

Item 1A.

Risk Factors

There have been no changes to the risk factors described in Part I, Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission on March 5, 2021.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Stock Repurchase Program

On December 16, 2019, our board of directors authorized a $10.0 million stock repurchase program, which expired on December 16, 2020. Effective December 17, 2019, we adopted a stock trading plan in accordance with Rule 10b5-1 of the Exchange Act, which was terminated on March 10, 2020. Effective April 14, 2020, we suspended our share repurchase program indefinitely. We provided our stockholders with notice of our ability to repurchase shares of our common stock in accordance with 1940 Act requirements. Effective December 16, 2021, the Company adopted a stock trading plan which expired on March 8, 2022. On May 4, 2021, our board of directors authorized a new $10.0 stock repurchase program with an expiration date of May 5, 2022 and may be modified, suspended or terminated at any time for any reason without prior notice. Effective December 16, 2021, the Company adopted a stock trading plan in accordance with Rule 10b5-1 of the Exchange Act (“Rule 10b5-1”) which expired on March 8, 2022. Effective March 16, 2022, the Company adopted a stock trading plan in accordance with Rule 10b5-1, with an expiration date of May 5, 2022. On May 5, 2022, our board of directors extended the expiration date of the stock repurchase program and the stock trading plan to May 6, 2023. The Company has provided its stockholders with notice of its ability to repurchase shares of its common stock in accordance with 1940 Act requirements. The Company has retired all shares of common stock purchased in connection with the stock repurchase program and plans to retire all shares of common stock that it purchases in the future in connection with the program.

Item 3.

Defaults Upon Senior Securities

None.

Item 4.

Mine Safety Disclosures

Not applicable.

Item 5.

Other Information

None.

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Item 6.

Exhibits

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

3.1	Third Amended and Restated Certificate of Incorporation (Incorporated by reference from the Company’s Current Report on Form 8-K, filed on August 6, 2020)

3.2	Second Amended and Restated Bylaws of the Registrant (Incorporated by reference from the Company’s Current Report on Form 8-K, filed on August 6, 2020)

3.3	Third Amended and Restated By-Laws, dated as of June 24, 2021 (Incorporated by reference from the Company’s Current Report on Form 8-K, filed on June 25, 2021)

3.4	Amendment No. 1 to Third Amended and Restated Senior Secured Revolving Credit Agreement, dated as of March 11, 2022 (Incorporated by reference from the Company’s Current Report on Form 8-K, filed on March 14, 2022.

11	Computation of Per Share Earnings (included in the notes to the consolidated financial statements contained in this report).

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

31.2	Certification of Chief Accounting Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.*

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

32.2	Certification of Chief Accounting Officer Pursuant to 18 U.S.C. Section 1350, as Adopted 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.

	FIRST EAGLE ALTERNATIVE CAPITAL BDC, INC.


Date: May 9, 2022	By:	/s/ Christopher J. Flynn
		Christopher J. Flynn
		Chief Executive Officer

Date: May 9, 2022	By:	/s/ Jennifer M. Wilson
		Jennifer M. Wilson
		Chief Accounting Officer

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