UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2021

OR

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

Commission file number: 814-00821

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

(Exact Name of Registrant as Specified in its Charter)

Maryland						27-2614444
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)
9 West 57th Street, 49th Floor, Suite 4920 New York, New York						10019
(Address of Principal Executive Office)						(Zip Code)

(212) 588-6770

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act: None.

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

Common Stock, par value $0.001 per share

(Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes o No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.Yes o No x

    

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes x No o

    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 o No o

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    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 o						Accelerated filer o
Non-accelerated filer x						Smaller reporting company o
						Emerging growth company o

    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. o

    Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of

the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.

7262(b)) by the registered public accounting firm that prepared or issued its audit report. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x

The number of shares of the registrant's common stock, $0.001 par value, outstanding as of May 10, 2021 was 199,247,698.

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 2021

TABLE OF CONTENTS

 

			Page
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements			4
Consolidated Statements of Assets and Liabilities as of March 31, 2021 (Unaudited) and December 31, 2020			4
Consolidated Statements of Operations for the Three Months Ended March 31, 2021 and 2020 (Unaudited)			5
Consolidated Statements of Changes in Net Assets for the Three Months Ended March 31, 2021 and 2020 (Unaudited)			7
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020 (Unaudited)			8
Consolidated Schedules of Investments as of March 31, 2021 (Unaudited) and December 31, 2020			10
Notes to Consolidated Financial Statements (Unaudited)			37
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			86
Item 3. Quantitative and Qualitative Disclosures About Market Risk			102
Item 4. Controls and Procedures			102
PART II - OTHER INFORMATION
Item 1. Legal Proceedings			103
Item 1A. Risk Factors			103
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			104
Item 3. Defaults Upon Senior Securities			104
Item 4. Mine Safety Disclosures			104
Item 5. Other Information			104
Item 6. Exhibits			105
Signatures			106

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PART I - FINANCIAL INFORMATION

Item 1. CONSOLIDATED FINANCIAL STATEMENTS

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

 

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(dollars in thousands except share and per share data)

			March 31,						December 31,
			2021						2020
			(Unaudited)
ASSETS
Investments, at fair value:
Control Investments, at fair value (amortized cost of $493,149 and $198,405, respectively)			$	519,224					$	232,605
Affiliate Investments, at fair value (amortized cost of $197,136 and $254,478, respectively)			153,027						189,259
Non-affiliate Investments, at fair value (amortized cost of $1,697,226 and $2,261,118, respectively)			1,667,406						2,201,652
Investments, at fair value (amortized cost of $2,387,511 and $2,714,001, respectively)			2,339,657						2,623,516
Cash and cash equivalents			60,103						53,182
Interest and dividends receivable			15,049						14,875
Receivable for unsettled trades			17,492						48,350
Prepaid expenses and other assets			3,050						2,675
Total assets			$	2,435,351					$	2,742,598
LIABILITIES
Debt (net of deferred financing costs of $11,761 and $13,098, respectively)			$	886,726					$	1,104,723
Stockholder distributions payable			15,286						15,494
Management fees payable			9,611						9,558
Incentive fee on income payable			6,955						6,223
Accounts payable and accrued expenses			10,601						8,343
Payable for unsettled trades			65,509						192,008
Interest and debt fees payable			7,661						5,931
Directors' fees payable			60						86
Unrealized depreciation on forward currency exchange contracts			185						477
Total liabilities			1,002,594						1,342,843
Commitments and contingencies (Note 7)
NET ASSETS
Preferred stock, $.001 par value, 50,000,000 shares authorized, none issued and outstanding			—						—
Common stock, $.001 par value, 450,000,000 shares authorized; 229,947,803 issued and 199,247,868 outstanding at March 31, 2021, and 229,288,951 issued and 201,390,728 outstanding at December 31, 2020			199						201
Additional paid in capital			1,893,898						1,908,116
Total distributable loss			(461,340)						(508,562)
Total net assets			1,432,757						1,399,755
Total liabilities and net assets			$	2,435,351					$	2,742,598
Net asset value per share			$	7.19					$	6.95

The accompanying notes are an integral part of these consolidated financial statements.

4

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands except share and per share data)

(Unaudited)

			For the three months ended March 31,
			2021						2020
Investment income:
From control investments
Interest income			$	3,480					$	6,048
Dividend income			13,833						3,418
Fee and other income			35						3
Total investment income from control investments			17,348						9,469
From affiliate investments
Interest income			3,180						948
Dividend income			878						409
Total investment income from affiliate investments			4,058						1,357
From non-affiliate investments
Interest income			34,058						41,175
Dividend income			—						40
Fee and other income			969						1,066
Total investment income from non-affiliate investments			35,027						42,281
Interest from cash and cash equivalents			1						174
Total investment income			56,434						53,281
Operating expenses:
Management fees			9,574						9,877
Incentive fee on income			6,655						—
Interest and debt fees			9,600						13,780
Professional fees			1,279						1,411
Other general and administrative			1,601						1,586
Administrative services			181						334
Directors' fees			226						261
Total expenses			29,116						27,249
Income tax expense, including excise tax			700						474
Net investment income			26,618						25,558
Realized and unrealized gain (loss):
Net realized gain (loss)
Control investments			1						(500)
Affiliate investments			(307)						189
Non-affiliate investments			(443)						(13,342)
Net realized loss on foreign currency transactions			(528)						(332)
Net realized loss on extinguishment of debt			(1,286)						—
Total net realized loss			(2,563)						(13,985)
Net change in unrealized appreciation (depreciation) on investments
Control investments			(8,125)						(17,605)
Affiliate investments			21,111						(28,639)
Non-affiliate investments			29,645						(161,453)
Net change in deferred taxes			—						714

The accompanying notes are an integral part of these consolidated financial statements.

5

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands except share and per share data)

(Unaudited)

			For the three months ended March 31,
			2021						2020
Total net change in unrealized appreciation (depreciation) on investments, net of change in deferred taxes			42,631						(206,983)
Net change in unrealized appreciation from forward currency exchange contracts			293						1,691
Net realized and unrealized gain (loss)			40,361						(219,277)
Net increase (decrease) in net assets resulting from operations			$	66,979					$	(193,719)
Per share information - basic and diluted
Net investment income			$	0.13					$	0.13
Net increase (decrease) in net assets resulting from operations			$	0.33					$	(1.02)
Weighted average shares outstanding			200,340,731						190,106,420

The accompanying notes are an integral part of these consolidated financial statements.

6

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(dollars in thousands except share and per share data)

(Unaudited)

			For the three months ended March 31,
			2021						2020
Operations:
Net investment income			$	26,618					$	25,558
Net realized loss from investments			(749)						(13,653)
Net realized loss on foreign currency transactions			(528)						(332)
Net realized loss on extinguishment of debt			(1,286)						—
Net change in unrealized appreciation (depreciation) on investments			42,631						(207,697)
Net change in deferred taxes			—						714
Net change in unrealized appreciation from forward currency exchange contracts			293						1,691
Net increase (decrease) in net assets resulting from operations			66,979						(193,719)
Stockholder distributions:
Distributions			(19,757)						(30,727)
Net decrease in net assets from stockholder distributions			(19,757)						(30,727)
Capital share transactions:
Issuance of common stock, net of issuance costs			—						55,000
Reinvestment of stockholder distributions			4,579						8,113
Repurchases of common stock			(18,799)						(16,541)
Net increase (decrease) in net assets from capital share transactions			(14,220)						46,572
Total increase (decrease) in net assets			33,002						(177,874)
Net assets at beginning of period			1,399,755						1,462,683
Net assets at end of period			$	1,432,757					$	1,284,809
Net asset value per common share			$	7.19					$	6.47
Common shares outstanding at end of period			199,247,868						198,651,991

The accompanying notes are an integral part of these consolidated financial statements.

7

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

(Unaudited)

			For the three months ended March 31,
			2021						2020
Operating activities:
Net increase (decrease) in net assets resulting from operations			$	66,979					$	(193,719)
Adjustments to reconcile net increase (decrease) in net assets from operations to net cash provided by (used in) operating activities:
Payment-in-kind interest income			(1,264)						(1,836)
Net accretion of discount on investments			(2,578)						(1,446)
Amortization of deferred financing costs			809						934
Amortization of discount on unsecured notes			122						195
Sales and repayments of investments			206,284						250,846
Purchases of investments			(221,050)						(301,533)
Net realized loss from investments			749						13,653
Net realized loss on foreign currency transactions			528						332
Net realized loss on extinguishment of debt			1,286						—
Net change in unrealized (appreciation) depreciation on investments			(42,631)						207,697
Net change in unrealized (appreciation) from forward currency exchange contracts			(293)						(1,691)
(Increase) decrease in operating assets:
Interest and dividends receivable			(174)						(835)
Receivable for unsettled trades			30,858						3,651
Prepaid expenses and other assets			(375)						793
Increase (decrease) in operating liabilities:
Management fees payable			53						781
Incentive fee on income payable			732						(6,099)
Accounts payable and accrued expenses			1,996						1,737
Payable for unsettled trades			(126,499)						10,868
Interest and debt fees payable			1,730						1,361
Directors' fees payable			(26)						29
Net cash provided by (used in) operating activities			(82,764)						(14,282)
Financing activities:
Repurchases of common stock			(18,799)						(16,541)
Proceeds from debt			497,994						197,000
Payments on debt			(373,100)						(27,000)
Payments of financing costs			(496)						—
Stockholder distributions			(15,386)						(22,704)
Net cash provided by (used in) financing activities			90,213						130,755
Net increase in cash and cash equivalents			7,449						116,473
Effect of foreign currency exchange rates			(528)						(332)
Cash and cash equivalents, beginning of period			53,182						46,470
Cash and cash equivalents, end of period			$	60,103					$	162,611
Supplemental information:
Interest paid during the period			$	5,463					$	11,232
Taxes, including excise tax, paid during the period			$	700					$	—

The accompanying notes are an integral part of these consolidated financial statements.

8

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

(Unaudited)

			For the three months ended March 31,
			2021						2020
Distributions reinvested			$	4,579					$	8,113
Assets and liabilities exchanged for interest in BDCA Senior Loan Fund, LLC (Note 3)			$	262,544					$	—

The accompanying notes are an integral part of these consolidated financial statements.

9

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

March 31, 2021

(Unaudited)

Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Senior Secured First Lien Debt - 103.5% (b)
1236904 BC, Ltd. (c) (h)						Software/Services						L+7.50% (8.50%), 3/4/2027						$	10,318					$	10,116					$	10,117					0.7		%
1236904 BC, Ltd. (c) (h) (i)						Software/Services						L+5.50% (5.61%), 3/4/2027						18,781						18,135						18,781						1.3		%
Abaco Systems Holding Corp. (c) (h) (i)						Industrials						L+6.00% (7.00%), 12/7/2021						22,913						22,849						22,913						1.6		%
Abercrombie & Fitch, Co. (a)						Consumer						8.75%, 7/15/2025						3,182						3,182						3,516						0.2		%
Acrisure, LLC (h) (i)						Financials						L+3.50% (3.70%), 2/16/2027						19,622						19,535						19,360						1.4		%
Alchemy US Holdco 1, LLC (c) (h) (i)						Industrials						L+5.50% (5.61%), 10/10/2025						3,690						3,659						3,561						0.2		%
American Airlines Inc/AAdvantage Loyalty IP, Ltd. (a)						Transportation						5.50%, 4/20/2026						7,895						7,895						8,216						0.6		%
American Airlines Inc/AAdvantage Loyalty IP, Ltd. (a)						Transportation						5.75%, 4/20/2029						7,895						7,895						8,394						0.6		%
Anchor Glass Container Corp. (c) (j)						Paper & Packaging						L+5.00% (6.00%), 12/7/2023						9,576						9,576						8,499						0.6		%
Aq Carver Buyer, Inc. (c) (h) (i)						Business Services						L+5.00% (6.00%), 9/23/2025						12,954						12,377						12,954						0.9		%
Arch Global Precision, LLC (c) (h) (i)						Industrials						L+4.75% (4.86%), 4/1/2026						11,764						11,701						11,764						0.8		%
Arctic Holdco, LLC (c)						Paper & Packaging						L+6.00% (7.00%), 12/23/2026						842						833						822						0.1		%
Arctic Holdco, LLC (c) (i)						Paper & Packaging						L+6.00% (7.00%), 12/23/2026						16,451						16,040						16,056						1.1		%
Aveanna Healthcare, LLC (h)						Healthcare						L+4.25% (5.25%), 3/18/2024						774						748						770						0.1		%
Aveanna Healthcare, LLC (h) (i)						Healthcare						L+5.50% (6.50%), 3/18/2024						8,089						7,940						8,069						0.6		%
Axiom Global, Inc. (c) (i)						Business Services						L+4.75% (5.50%), 10/1/2026						16,226						16,094						16,226						1.1		%
BBB Industries, LLC (h)						Transportation						L+4.50% (4.61%), 8/1/2025						12,955						12,885						12,767						0.9		%
Bearcat Buyer, Inc. (c) (i)						Healthcare						L+4.25% (5.25%), 7/9/2026						152						152						152						0.0		%
Bearcat Buyer, Inc. (c) (i)						Healthcare						L+4.25% (5.25%), 7/9/2026						732						732						730						0.1		%
Beasley Mezzanine Holdings, LLC						Broadcasting						8.63%, 2/1/2026						2,174						2,174						2,185						0.2		%
Black Mountain Sand, LLC (c)						Energy						L+9.00% (10.50%), 6/28/2024						22,108						21,984						22,108						1.5		%
Capstone Logistics (h)						Transportation						L+4.75% (5.75%), 11/12/2027						16,406						16,251						16,396						1.1		%
CareCentrix, Inc. (i)						Healthcare						L+4.50% (4.70%), 4/3/2025						7,969						7,948						7,260						0.5		%
CCW, LLC (c) (h) (i) (t)						Food & Beverage						L+8.00% (9.00%), 12/31/2021						28,461						25,612						16,195						1.1		%
CDHA Holdings, LLC (c) (h) (i) (j)						Healthcare						L+7.25% (8.25%) 1.00% PIK, 8/24/2023						16,041						15,926						15,873						1.1		%
CDS U.S. Intermediate Holdings, Inc. (a) (c) (h) (i) (p)						Media/Entertainment						L+6.00% (7.00%), 11/24/2025						3,168						3,094						3,168						0.2		%
CHA Holdings, Inc. (c) (i)						Business Services						L+4.50% (5.50%), 4/10/2025						524						492						524						0.0		%
Chloe Ox Parent, LLC (c) (i)						Healthcare						L+4.50% (5.50%), 12/23/2024						11,332						11,270						11,332						0.8		%
Chloe Ox Parent, LLC (c) (i)						Healthcare						L+5.25% (6.25%), 12/23/2024						22,479						21,847						22,479						1.6		%
CLP Health Services, Inc. (i)						Healthcare						L+4.25% (5.00%), 12/31/2026						13,013						12,847						13,056						0.9		%

The accompanying notes are an integral part of these consolidated financial statements.

10

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

March 31, 2021

(Unaudited)

Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Cobblestone Intermediate Holdco, LLC (c) (i)						Consumer						L+5.50% (6.50%), 1/29/2026						$	5,264					$	5,160					$	5,160					0.4		%
Cold Spring Brewing, Co. (c) (h) (i)						Food & Beverage						L+4.75% (5.75%), 12/19/2025						8,412						8,345						8,412						0.6		%
CommerceHub, Inc. (i)						Technology						L+4.00% (4.75%), 12/29/2027						7,697						7,660						7,702						0.5		%
Community Care Health Network, LLC (h)						Healthcare						L+4.50% (4.61%), 2/17/2025						1,678						1,621						1,681						0.1		%
Corfin Industries, LLC (c) (h) (i)						Industrials						L+6.00% (7.00%), 2/5/2026						12,174						11,977						12,174						0.8		%
Cornerstone Chemical, Co.						Chemicals						6.75%, 8/15/2024						4,850						4,621						4,628						0.3		%
CRS-SPV, Inc. (c) (j) (o) (w)						Industrials						L+4.50% (5.50%), 3/8/2022						62						62						62						0.0		%
Drilling Info Holdings, Inc. (c) (i)						Business Services						L+4.25% (4.36%), 7/30/2025						7,079						6,846						7,079						0.5		%
Dynagrid Holdings, LLC (c)						Utilities						L+6.00% (7.00%), 12/18/2025						113						113						111						0.0		%
Dynagrid Holdings, LLC (c) (i)						Utilities						L+6.00% (7.00%), 12/18/2025						14,445						14,169						14,172						1.0		%
Dynasty Acqusition Co., Inc. (i)						Industrials						L+3.50% (3.70%), 4/6/2026						344						344						333						0.0		%
Dynasty Acqusition Co., Inc. (i)						Industrials						L+3.50% (3.70%), 4/6/2026						185						185						179						0.0		%
Enviva Holdings, LP (a) (c) (i)						Utilities						L+5.50% (6.50%), 2/17/2026						9,828						9,731						9,730						0.7		%
Florida Food Products, LLC (c) (h)						Food & Beverage						L+6.50% (7.50%), 9/6/2025						21,834						21,489						21,834						1.5		%
Florida Food Products, LLC (c) (i)						Food & Beverage						L+7.25% (8.25%), 9/8/2025						1,321						1,248						1,321						0.1		%
Florida Food Products, LLC (c) (j)						Food & Beverage						L+6.50% (7.50%), 9/6/2023						461						461						461						0.0		%
Foresight Energy Operating, LLC (c) (p)						Energy						L+8.00% (9.50%), 6/30/2027						1,323						1,323						1,351						0.1		%
Frontier Communications Corp.						Telecom						5.00%, 5/1/2028						1,240						1,240						1,264						0.1		%
Frontier Communications Corp. (h)						Telecom						L+4.75% (5.75%), 10/8/2027						18,988						18,871						18,909						1.3		%
Gold Standard Baking, Inc. (c)						Food & Beverage						L+6.50% (7.50%) 2.00% PIK, 7/25/2022						3,147						2,750						1,259						0.1		%
Gordian Medical, Inc. (i)						Healthcare						L+6.25% (7.00%), 1/31/2027						10,447						10,134						10,290						0.7		%
Green Energy Partners/Stonewall, LLC						Utilities						L+5.50% (6.50%), 11/15/2021						987						987						919						0.1		%
Green Energy Partners/Stonewall, LLC						Utilities						L+5.50% (6.50%), 11/15/2021						1,307						1,306						1,218						0.1		%
Health Plan One, Inc. (c) (j)						Financials						L+7.50% (8.50%), 7/15/2025						10,695						10,236						10,695						0.7		%
Higginbotham Insurance Agency, Inc. (c) (h)						Financials						L+5.75% (6.50%), 11/25/2026						11,579						11,415						11,415						0.8		%
HireRight, Inc. (i)						Business Services						L+3.75% (3.86%), 7/11/2025						2,878						2,861						2,831						0.2		%
Hospice Care Buyer, Inc. (c)						Healthcare						L+6.50% (7.50%), 12/9/2026						278						278						270						0.0		%
Hospice Care Buyer, Inc. (c) (h)						Healthcare						L+6.50% (7.50%), 12/9/2026						21,876						21,219						21,253						1.5		%
Hospice Care Buyer, Inc. (c) (h)						Healthcare						L+6.50% (7.50%), 12/9/2026						6,423						6,235						6,235						0.4		%
Hospice Care Buyer, Inc. (c)						Healthcare						L+6.50% (7.50%), 12/9/2026						2,220						2,220						2,157						0.2		%
Houghton Mifflin Harcourt Publishers, Inc. (a) (i)						Education						L+6.25% (7.25%), 11/22/2024						1,438						1,427						1,432						0.1		%

The accompanying notes are an integral part of these consolidated financial statements.

11

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

March 31, 2021

(Unaudited)

Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
ICR Operations, LLC (c) (h) (i)						Business Services						L+5.00% (6.00%), 3/26/2025						$	17,101					$	16,901					$	17,101					1.2		%
ICR Operations, LLC (c) (i)						Business Services						L+5.00% (6.00%), 3/26/2025						6,633						6,481						6,633						0.5		%
Ideal Tridon Holdings, Inc. (c)						Industrials						L+5.75% (6.75%), 7/31/2024						46						45						46						0.0		%
Ideal Tridon Holdings, Inc. (c) (h) (i)						Industrials						L+5.75% (6.75%), 7/31/2024						826						816						826						0.1		%
Ideal Tridon Holdings, Inc. (c) (h) (i)						Industrials						L+5.75% (6.75%), 7/31/2024						26,837						26,633						26,837						1.9		%
Ideal Tridon Holdings, Inc. (c) (j)						Industrials						L+5.75% (6.75%), 7/31/2023						442						442						442						0.0		%
Integral Ad Science, Inc. (c) (j)						Software/Services						L+6.00% (7.00%), 7/19/2024						15,515						15,346						15,515						1.1		%
Integrated Efficiency Solutions, Inc. (c) (w)						Industrials						L+2.50% (3.50%) 1.50% PIK, 6/30/2022						3,867						3,866						2,832						0.2		%
Integrated Global Services, Inc. (c) (i)						Industrials						L+6.00% (7.00%), 2/4/2026						11,414						11,230						10,955						0.8		%
Integrated Global Services, Inc. (c) (j)						Industrials						L+6.00% (7.00%), 2/4/2026						1,622						1,622						1,556						0.1		%
Intelsat Jackson Holdings, SA (a)						Telecom						P+4.75% (8.00%), 11/27/2023						1,124						1,121						1,141						0.1		%
Intelsat Jackson Holdings, SA (a)						Telecom						8.63%, 1/2/2024						2,367						2,374						2,412						0.2		%
Internap Corp. (c) (h) (p)						Business Services						L+6.50% (7.50%) 5.50% PIK, 5/8/2025						6,039						6,039						5,253						0.4		%
International Cruise & Excursions, Inc. (c) (i)						Business Services						L+5.25% (6.25%), 6/6/2025						4,938						4,906						4,380						0.3		%
Jakks Pacific, Inc. (c) (p)						Consumer						10.50%, 2.50% PIK, 2/9/2023						18,515						17,562						18,515						1.3		%
K2 Intelligence Holdings, Inc. (c) (h) (i)						Business Services						L+4.75% (5.75%), 9/23/2024						10,251						10,109						10,098						0.7		%
Kahala Ireland OpCo Designated Activity Company (a) (c) (j) (o)						Transportation						L+8.00% (13.00%), 12/22/2028						13,549						13,549						13,549						0.9		%
Kaman Distribution Corp. (c) (h) (i)						Industrials						L+5.00% (5.20%), 8/26/2026						21,229						19,746						21,229						1.5		%
KidKraft, Inc. (c) (w)						Consumer						L+5.00%, (6.00%) PIK, 8/15/2022						1,060						218						827						0.1		%
KMTEX, LLC (c) (g) (o)						Chemicals						P+3.00% (6.25%) PIK, 6/16/2025						477						477						477						0.0		%
KMTEX, LLC (c) (g) (o)						Chemicals						P+3.00% (6.25%) PIK, 6/16/2025						842						842						611						0.0		%
KMTEX, LLC (c) (o)						Chemicals						P+3.00% (6.25%) PIK, 6/16/2025						3,280						3,280						2,381						0.2		%
Labrie Environmental Group, LLC (a) (c) (h)						Industrials						L+5.50% (6.50%), 9/1/2026						22,752						22,341						22,752						1.6		%
Lakeland Tours, LLC (c) (h)						Education						L+7.50% (8.75%) 6.00% PIK, 9/25/2025						3,412						3,395						3,412						0.2		%
Lakeland Tours, LLC (c) (h)						Education						L+7.50% (8.75%) 6.00% PIK, 9/25/2025						4,135						3,699						3,639						0.3		%
Lakeland Tours, LLC (c) (h)						Education						L+12.00% (13.25%) 6.00% PIK, 9/25/2023						1,806						1,806						1,806						0.1		%
Lakeland Tours, LLC (c) (h)						Education						13.25% PIK, 9/27/2027						4,375						2,475						2,187						0.2		%
Lakeview Health Holdings, Inc. (c) (t) (w)						Healthcare						9.75% PIK, 12/15/2021						146						124						36						0.0		%
Lakeview Health Holdings, Inc. (c) (t) (w)						Healthcare						9.75% PIK, 12/15/2021						4,235						2,672						1,058						0.1		%
LightSquared, LP						Telecom						15.50%, 11/1/2023						1,540						1,540						1,548						0.1		%
Liquid Tech Solutions Holdings, LLC (h)						Industrials						L+4.75% (5.50%), 3/20/2028						10,267						10,216						10,216						0.7		%

The accompanying notes are an integral part of these consolidated financial statements.

12

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

March 31, 2021

(Unaudited)

Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Manna Pro Products, LLC (c) (i)						Consumer						L+6.00% (7.00%), 12/10/2026						$	24,597					$	24,020					$	24,014					1.7		%
McDonald Worley, P.C. (c)						Business Services						21.00% PIK, 12/31/2024						10,047						10,047						10,047						0.7		%
MCS Acquisition Corp. (c)						Business Services						L+6.00% (7.00%), 10/2/2025						786						786						786						0.1		%
Medical Depot Holdings, Inc. (h) (i)						Healthcare						L+9.50% (10.50%) 4.00% PIK, 1/3/2023						19,332						18,820						17,705						1.2		%
MGTF Radio Company, LLC (c) (j) (o)						Media/Entertainment						L+6.00% (7.00%), 4/1/2024						54,771						54,675						43,105						3.0		%
Midwest Can Company, LLC (c) (h) (i)						Paper & Packaging						L+6.00% (7.00%), 3/2/2026						29,907						29,390						29,907						2.1		%
Midwest Can Company, LLC (c) (j)						Paper & Packaging						L+6.00% (7.00%), 3/2/2026						1,413						1,413						1,413						0.1		%
Miller Environmental Group, Inc. (c) (h) (i)						Business Services						L+6.50% (7.50%), 3/15/2024						11,434						11,299						11,434						0.8		%
Miller Environmental Group, Inc. (c) (h) (i)						Business Services						L+6.50% (7.50%), 3/15/2024						10,457						10,310						10,457						0.7		%
Ministry Brands, LLC (c) (i)						Software/Services						L+4.00% (5.00%), 12/2/2022						5,655						5,609						5,655						0.4		%
Mintz Group, LLC (c) (i)						Business Services						L+4.75% (5.75%), 3/18/2026						4,215						4,180						4,215						0.3		%
Monitronics International, Inc. (j)						Business Services						L+6.50% (7.75%), 3/29/2024						5,551						5,557						5,393						0.4		%
MSG National Properties, LLC (a) (c) (h)						Media/Entertainment						L+6.25% (7.00%), 11/12/2025						12,280						11,939						12,280						0.9		%
Muth Mirror Systems, LLC (c) (h) (i)						Technology						L+5.25% (6.25%), 4/23/2025						15,379						15,171						14,253						1.0		%
New Amsterdam Software Bidco, LLC (c) (h) (i)						Technology						L+5.00% (6.00%), 5/1/2026						6,057						5,969						6,057						0.4		%
New Star Metals, Inc. (c) (h) (i)						Industrials						L+6.00% (7.50%), 7/10/2023						21,803						21,450						21,803						1.5		%
Norvax, LLC (c) (j)						Business Services						L+6.50% (7.50%), 9/12/2025						11,345						11,124						11,345						0.8		%
NTM Acquisition Corp. (c) (h) (i)						Media/Entertainment						L+7.25% (8.25%) 1.00% PIK, 6/7/2024						22,016						21,951						19,814						1.4		%
Olaplex, Inc. (c) (h) (i)						Consumer						L+6.50% (7.50%), 1/8/2026						17,121						16,849						17,121						1.2		%
ORG GC Holdings, LLC (c) (h) (t)						Business Services						L+6.75% (7.75%), 7/31/2022						21,624						21,457						14,306						1.0		%
Pilot Air Freight, LLC (c) (i)						Transportation						L+4.75% (5.75%), 7/25/2024						7,933						7,814						7,814						0.5		%
Planet Equity Group, LLC (c) (h)						Business Services						P+5.25% (6.25%), 11/18/2025						1,087						1,069						1,087						0.1		%
Planet Equity Group, LLC (c) (h)						Business Services						L+5.25% (6.25%), 11/18/2025						14,754						14,583						14,754						1.0		%
Planet Equity Group, LLC (c) (j)						Business Services						L+4.25% (7.50%), 11/18/2024						581						581						581						0.0		%
PlayPower, Inc. (c) (h) (i)						Industrials						L+5.50% (5.70%), 5/8/2026						25,284						25,006						25,056						1.7		%
Premier Dental Services, Inc. (h) (i)						Healthcare						L+5.25% (6.25%), 6/30/2023						31,939						31,814						31,061						2.2		%
Premier Global Services, Inc. (c)						Telecom						L+6.50% (7.50%), 6/8/2023						6,066						5,926						2,960						0.2		%
Prototek, LLC (c)						Industrials						L+5.75% (6.75%), 10/20/2026						903						903						884						0.1		%
Prototek, LLC (c) (h)						Industrials						L+5.75% (6.75%), 10/20/2026						11,257						11,022						11,022						0.8		%
PSKW, LLC (c) (h) (i)						Healthcare						L+6.25% (7.25%), 3/9/2026						29,700						29,089						29,700						2.1		%

The accompanying notes are an integral part of these consolidated financial statements.

13

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

March 31, 2021

(Unaudited)

Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
PT Network, LLC (c) (h)						Healthcare						L+7.50% (8.50%) 2.00% PIK, 11/30/2023						$	17,044					$	16,994					$	15,919					1.1		%
Questex, Inc. (c) (h) (i)						Media/Entertainment						L+5.75% (6.75%), 9/9/2024						15,786						15,606						14,492						1.0		%
Questex, Inc. (c) (j)						Media/Entertainment						L+5.75% (6.75%), 9/9/2024						1,895						1,895						1,738						0.1		%
RE Investment Company, LLC (c)						Industrials						L+8.00% (9.00%), 9/25/2025						5,652						5,652						5,526						0.4		%
RE Investment Company, LLC (c) (h)						Industrials						L+8.00% (9.00%), 9/25/2025						13,564						13,260						13,261						0.9		%
Red River Technology, LLC (c) (h) (i)						Business Services						L+5.00% (6.00%), 8/30/2024						23,372						23,130						23,372						1.6		%
Reddy Ice Corp. (c) (h) (i)						Food & Beverage						L+6.50% (7.50%), 7/1/2025						19,294						18,885						18,918						1.3		%
Reddy Ice Corp. (c) (j)						Food & Beverage						L+6.50% (7.50%), 7/1/2025						1,817						1,802						1,782						0.1		%
Refresh Parent Holdings, Inc. (c)						Healthcare						L+6.50% (7.50%), 12/9/2026						1,710						1,710						1,667						0.1		%
Refresh Parent Holdings, Inc. (c) (h)						Healthcare						L+6.50% (7.50%), 12/9/2026						9,559						9,328						9,318						0.7		%
REP TEC Intermediate Holdings, Inc. (c)						Software/Services						L+6.50% (7.50%), 6/19/2025						494						494						494						0.0		%
REP TEC Intermediate Holdings, Inc. (c) (h)						Software/Services						L+6.50% (7.50%), 6/19/2025						1,540						1,525						1,525						0.1		%
REP TEC Intermediate Holdings, Inc. (c) (h) (i)						Software/Services						L+6.50% (7.50%), 6/19/2025						6,962						6,786						6,962						0.5		%
Resco Products, Inc. (c)						Industrials						L+7.00% (9.00%) 2.00% PIK, 6/5/2022						9,550						9,550						8,786						0.6		%
RXB Holdings, Inc. (h)						Healthcare						L+5.25% (6.00%), 12/20/2027						8,075						7,919						8,034						0.6		%
SCIH Salt Holdings, Inc. (c)						Industrials						L+4.00% (5.00%), 3/17/2025						—						—						—						—		%
SCIH Salt Holdings, Inc. (h) (i)						Industrials						L+4.50% (5.50%), 3/16/2027						24,788						24,574						24,788						1.7		%
SFR Group, SA (a) (i)						Telecom						L+4.00% (4.20%), 8/14/2026						7,879						7,828						7,852						0.5		%
SitusAMC Holdings Corp. (c) (h) (i)						Financials						L+4.75% (5.75%), 6/30/2025						8,370						8,281						8,320						0.6		%
SitusAMC Holdings Corp. (c) (h) (i)						Financials						L+4.75% (5.75%), 6/28/2025						4,729						4,677						4,701						0.3		%
SitusAMC Holdings Corp. (c) (j)						Financials						L+4.75% (5.75%), 6/30/2025						752						743						747						0.1		%
Skillsoft Corp.						Technology						L+7.50% (8.50%), 12/27/2024						725						687						741						0.1		%
Skillsoft Corp. (c)						Technology						L+7.50% (8.50%), 12/27/2024						638						608						638						0.0		%
Skillsoft Corp. (h)						Technology						L+7.50% (8.50%), 4/28/2025						12,918						12,857						12,864						0.9		%
St. Croix Hospice Acquisition Corp. (c) (i)						Healthcare						L+6.25% (7.25%), 10/30/2026						25,874						25,393						25,393						1.8		%
Striper Buyer, LLC (c) (h)						Paper & Packaging						L+5.50% (6.25%), 12/30/2026						12,487						12,364						12,363						0.9		%
Subsea Global Solutions, LLC (c) (i)						Business Services						L+7.00% (8.00%), 3/29/2023						4,744						4,689						4,744						0.3		%
Subsea Global Solutions, LLC (c) (i)						Business Services						L+7.00% (8.00%), 3/29/2023						7,980						7,916						7,980						0.6		%
Subsea Global Solutions, LLC (c) (j)						Business Services						L+7.00% (8.00%), 3/29/2023						289						289						289						0.0		%

The accompanying notes are an integral part of these consolidated financial statements.

14

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

March 31, 2021

(Unaudited)

Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Tax Defense Network, LLC (c) (p) (t)						Consumer						L+6.00% (10.00%) PIK, 9/30/2021						$	6,152					$	3,833					$	431					0.0		%
Tax Defense Network, LLC (c) (p) (t)						Consumer						10.00% PIK, 9/30/2021						3,397						2,986						3,397						0.2		%
Tax Defense Network, LLC (c) (p) (t)						Consumer						L+6.00% (10.00%) PIK, 9/30/2021						34,658						21,646						2,426						0.2		%
Tillamook Country Smoker, LLC (c) (h)						Food & Beverage						L+7.75% (8.75%), 5/19/2022						9,783						9,750						9,497						0.7		%
Tillamook Country Smoker, LLC (c) (j)						Food & Beverage						L+7.75% (8.75%), 5/19/2022						2,561						2,561						2,486						0.2		%
Trademark Global, LLC (c) (j) (w)						Consumer						L+5.50% (6.50%), 10/31/2022						1,947						1,947						1,947						0.1		%
Travelport Finance (Luxembourg) S.A R. L. (a) (h)						Business Services						L+8.00% (9.00%) 6.50% PIK, 2/28/2025						6,776						6,725						6,892						0.5		%
Trilogy International Partners, LLC (a)						Telecom						8.88%, 5/1/2022						14,875						14,856						14,467						1.0		%
Trilogy International Partners, LLC (a) (c) (h)						Telecom						10.00%, 5/1/2022						6,298						6,091						6,172						0.4		%
University of St. Augustine Acquisition Corp. (c) (h) (i)						Education						L+4.25% (5.25%), 2/2/2026						23,701						23,292						23,701						1.7		%
Urban One, Inc.						Media/Entertainment						7.38%, 2/1/2028						13,061						13,061						13,522						0.9		%
Veritext Corp. (h) (i)						Business Services						L+3.50% (3.61%), 8/1/2025						3,532						3,532						3,483						0.2		%
Vertex Aerospace Services Corp. (h) (i)						Industrials						L+4.00% (4.11%), 6/29/2027						10,169						10,139						10,163						0.7		%
WMK, LLC (c)						Business Services						L+7.50% (8.50%), 9/5/2025						356						353						356						0.0		%
WMK, LLC (c) (h) (i)						Business Services						L+7.50% (8.50%), 9/5/2025						19,082						18,841						19,082						1.3		%
WMK, LLC (c) (j)						Business Services						L+7.50% (8.50%), 9/5/2025						2,582						2,572						2,582						0.2		%
WMK, LLC (c) (j)						Business Services						L+7.50% (8.50%), 9/5/2024						2,184						2,184						2,184						0.2		%
Subtotal Senior Secured First Lien Debt																								$	1,539,830					$	1,483,081					103.5		%
Senior Secured Second Lien Debt - 17.5% (b)
Accentcare, Inc. (c) (h)						Healthcare						L+8.75% (9.50%), 6/21/2027						$	30,152					$	29,510					$	30,152					2.1		%
Anchor Glass Container Corp. (c) (j)						Paper & Packaging						L+7.75% (8.75%), 12/6/2024						6,667						6,615						2,553						0.2		%
Aruba Investments Holdings, LLC (c) (i)						Chemicals						L+7.75% (8.50%), 11/24/2028						3,759						3,705						3,759						0.3		%
Astro AB Merger Sub, Inc. (a) (c) (h)						Financials						L+8.00% (9.00%), 4/30/2025						9,638						9,604						9,638						0.7		%
Asurion, LLC (h)						Business Services						L+5.25% (5.36%), 1/31/2028						15,632						15,632						15,906						1.1		%
Avatar Purchaser, Inc. (c)						Software/Services						L+7.50% (8.50%), 11/17/2025						1,716						1,686						1,716						0.1		%
Aveanna Healthcare, LLC (h)						Healthcare						L+8.00% (9.00%), 3/17/2025						5,883						5,839						5,865						0.4		%
Barracuda Networks, Inc. (h)						Software/Services						L+6.75% (7.50%), 10/30/2028						4,698						4,653						4,774						0.3		%
BrandMuscle Holdings, Inc. (c) (j)						Business Services						L+8.50% (9.50%), 6/1/2022						24,500						24,411						24,500						1.7		%
Carlisle FoodService Products, Inc. (c) (h)						Consumer						L+7.75% (8.75%), 3/20/2026						10,719						10,586						10,001						0.7		%
CDS U.S. Intermediate Holdings, Inc. (a) (c) (p)						Media/Entertainment						L+8.00% (9.00%) 7.00% PIK, 11/24/2027						1,629						1,369						1,515						0.1		%

The accompanying notes are an integral part of these consolidated financial statements.

15

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

March 31, 2021

(Unaudited)

Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
CommerceHub, Inc. (c) (h)						Technology						L+7.00% (7.75%), 12/29/2028						$	12,360					$	12,300					$	12,391					0.9		%
Dentalcorp Perfect Smile, ULC (a) (c) (j)						Healthcare						L+7.50% (8.50%), 6/8/2026						10,139						10,072						10,139						0.7		%
HAH Group Holding Company, LLC (c) (h)						Healthcare						L+8.50% (9.50%), 10/30/2028						12,445						12,150						12,445						0.9		%
Hyland Software, Inc. (c) (h)						Technology						L+7.00% (7.75%), 7/7/2025						7,575						7,589						7,619						0.5		%
MLN US Holdco, LLC (a) (c) (h) (i)						Technology						L+8.75% (8.85%), 11/30/2026						3,000						2,957						1,941						0.1		%
PetVet Care Centers, LLC (h)						Healthcare						L+6.25% (6.36%), 2/13/2026						3,539						3,528						3,532						0.3		%
Project Boost Purchaser, LLC (c) (j)						Business Services						L+8.00% (8.11%), 5/31/2027						1,848						1,848						1,835						0.1		%
QuickBase, Inc. (c)						Technology						L+8.00% (8.11%), 4/2/2027						7,484						7,372						7,476						0.5		%
RealPage, Inc. (a) (i)						Software/Services						L+6.50% (7.25%), 2/18/2029						13,647						13,442						13,988						1.0		%
Recess Holdings, Inc. (c) (h)						Industrials						L+7.75% (8.75%), 9/29/2025						16,134						15,976						15,618						1.1		%
Renaissance Holding Corp. (h)						Software/Services						L+7.00% (7.11%), 5/29/2026						11,029						10,900						10,985						0.8		%
River Cree Enterprises, LP (a) (c) (m)						Gaming/Lodging						10.00%, 5/17/2025						CAD	21,275					16,468						14,429						1.0		%
SSH Group Holdings, Inc. (c) (h)						Education						L+8.25% (8.45%), 7/30/2026						10,122						10,054						9,717						0.7		%
TIBCO Software, Inc. (j)						Technology						L+7.25% (7.36%), 3/3/2028						13,020						12,963						13,146						0.9		%
Travelpro Products, Inc. (a) (c) (m) (w)						Consumer						13.00%, 2.00% PIK, 11/21/2022						CAD	3,049					2,349						1,875						0.1		%
Travelpro Products, Inc. (a) (c) (w)						Consumer						14.50%, 11.25% PIK, 11/21/2022						2,635						2,635						2,036						0.1		%
Vantage Mobility International, LLC (c) (p) (t) (w)						Transportation						L+6.00% (7.00%) PIK, 9/9/2021						3,399						2,914						960						0.1		%
Subtotal Senior Secured Second Lien Debt																								$	259,127					$	250,511					17.5		%
Subordinated Debt - 6.0% (b)
Del Real, LLC (c) (t) (w)						Food & Beverage						14.50%, 2.00% PIK, 4/1/2023						$	3,775					$	3,131					$	3,186					0.2		%
Gdb Debt Recovery Authority Of Commonwealth Puerto Rico (a)						Financials						7.50%, 8/20/2040						13,004						9,712						10,902						0.8		%
Jakks Pacific, Inc. (c) (p)						Consumer						6.00%, 2.75% PIK, 7/3/2023						1,566						1,448						1,448						0.1		%
Park Ave RE Holdings, LLC (c) (j) (o) (v)						Financials						13.00%, 12/31/2021						32,237						32,237						32,237						2.2		%
PCX Aerostructures, LLC (c) (j) (p) (w)						Industrials						6.00%, 8/9/2021						7,995						7,239						10,020						0.7		%
Siena Capital Finance, LLC (c) (j) (o)						Financials						12.50%, 5/15/2024						28,500						28,493						28,500						2.0		%
Subtotal Subordinated Debt																								$	82,260					$	86,293					6.0		%
Collateralized Securities - 2.8% (b)
Collateralized Securities - Debt Investments
NewStar Arlington Senior Loan Program, LLC 14-1A FR (a) (c) (j) (p)						Diversified Investment Vehicles						L+11.00% (11.22%), 4/25/2031						$	4,750					$	4,572					$	3,835					0.3		%
Newstar Fairfield Fund CLO, Ltd. 2015-1RA F (a) (c) (j) (p)						Diversified Investment Vehicles						L+7.50% (7.72%), 1/20/2027						10,728						9,705						6,133						0.4		%
Whitehorse, Ltd. 2014-1A E (a) (c) (p)						Diversified Investment Vehicles						L+4.55% (4.76%), 5/1/2026						8,000						7,865						6,048						0.4		%

The accompanying notes are an integral part of these consolidated financial statements.

16

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

March 31, 2021

(Unaudited)

Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Collateralized Securities - Equity Investments (n)
Figueroa CLO, Ltd. 2014-1A Side Letter (a) (c)						Diversified Investment Vehicles						25.44%, 1/15/2027						$	2,986					$	59					$	—					—		%
MidOcean Credit CLO 2013-2A INC (a) (c) (k) (p)						Diversified Investment Vehicles						0.00%, 1/29/2030						37,600						15,829						7,523						0.5		%
NewStar Arlington Senior Loan Program, LLC 14-1A SUB (a) (c) (j) (k) (p)						Diversified Investment Vehicles						20.15%, 4/25/2031						31,603						18,119						16,816						1.2		%
Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB (a) (c) (k) (p)						Diversified Investment Vehicles						0.00%, 1/20/2027						31,575						6,285						—						—		%
OFSI Fund, Ltd. 2014-6A Side Letter (a) (c)						Diversified Investment Vehicles						0.00%, 3/20/2025						1,970						263						—						—		%
Whitehorse, Ltd. 2014-1A Side Letter (a) (c) (p)						Diversified Investment Vehicles						0.00%, 5/1/2026						1,886						134						—						—		%
Whitehorse, Ltd. 2014-1A SUB (a) (c) (k) (p)						Diversified Investment Vehicles						0.00%, 5/1/2026						36,000						6,965						—						—		%
Subtotal Collateralized Securities																								$	69,796					$	40,355					2.8		%
Equity/Other - 33.5% (b) (d)
Aden & Anais Holdings, Inc. (c) (e) (w)						Retail												4,470						$	—					$	—					—		%
Answers Corp. (c) (e) (p)						Media/Entertainment												908,911						10,643						145						0.0		%
Baker Hill Acquisition, LLC (c) (e) (w)						Financials												22,653						—						—						—		%
BDCA Senior Loan Fund, LLC (a) (c) (o)						Diversified Investment Vehicles												304,934						304,934						304,934						21.3		%
Black Mountain Sand, LLC (c) (e) (u)						Energy												55,463						—						3						0.0		%
Capstone Nutrition Development, LLC (c) (e) (p) (u)						Consumer												47,883						4,468						14,753						1.0		%
CDS U.S. Intermediate Holdings, Inc. (a) (c) (e) (p)						Media/Entertainment												539,708						1,224						4,021						0.3		%
CDS U.S. Intermediate Holdings, Inc. (a) (c) (e) (p)						Media/Entertainment												874,000						437						1,311						0.1		%
Clover Technologies Group, LLC (c) (e)						Industrials												180,274						1,153						18						0.0		%
Clover Technologies Group, LLC (c) (e)						Industrials												2,753						275						405						0.0		%
CRD Holdings, LLC (a) (c) (o) (u)						Energy						9.00%						52,285,603						10,221						10,050						0.7		%
CRS-SPV, Inc. (c) (e) (j) (o) (w)						Industrials												246						2,219						1,393						0.1		%
Danish CRJ, Ltd. (a) (c) (e) (p) (r)						Transportation												5,002						—						—						—		%
Data Source Holdings, LLC (c) (e) (w)						Business Services												10,617						140						203						0.0		%
Del Real, LLC (c) (e) (u) (w)						Food & Beverage												670,510						382						—						—		%
Dyno Acquiror, Inc. (c) (e) (w)						Consumer												134,102						58						107						0.0		%
First Eagle Greenway Fund II, LLC (a) (j) (p)						Diversified Investment Vehicles												5,329						5,329						1,811						0.1		%
Foresight Energy Operating, LLC (c) (e) (p) (u)						Energy												158,093						2,087						3,729						0.3		%
HemaSource, Inc. (c) (e) (w)						Healthcare												223,503						168						268						0.0		%
Integrated Efficiency Solutions, Inc. (c) (e) (w)						Industrials												53,215						56						—						—		%
Integrated Efficiency Solutions, Inc. (c) (e) (w)						Industrials												2,975						3						—						—		%
Internap Corp (c) (e) (p)						Business Services												1,293,189						543						2,231						0.2		%
Jakks Pacific, Inc. (c) (e) (p)						Consumer												5,303						104						666						0.0		%
Jakks Pacific, Inc. (e) (p) (s)						Consumer												9,885						41						70						0.0		%

The accompanying notes are an integral part of these consolidated financial statements.

17

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

March 31, 2021

(Unaudited)

Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Kahala Ireland OpCo Designated Activity Company (a) (c) (o) (y)						Transportation												1						$	—					$	35,952					2.6		%
Kahala Ireland OpCo Designated Activity Company (a) (c) (o) (y)						Transportation												3,250,000						—						3,250						0.2		%
Kahala US OpCo, LLC (a) (c) (e) (o) (x)						Transportation						13.00%						4,413,472						—						—						—		%
KidKraft, Inc. (c) (e) (u) (w)						Consumer												2,682,257						—						—						—		%
KMTEX, LLC (c) (e) (o) (u)						Chemicals												442,000						—						—						—		%
KMTEX, LLC (c) (e) (o) (u)						Chemicals												4,162,000						2,793						—						—		%
Lakeview Health Holdings, Inc. (c) (e) (w)						Healthcare												447						—						—						—		%
MCS Acquisition Corp. (c) (e)						Business Services												31,521						4,103						2,779						0.2		%
MGTF Holdco, LLC (c) (e) (o) (u)						Media/Entertainment												402,000						—						—						—		%
Motor Vehicle Software Corp. (c) (e) (w)						Business Services												223,503						318						279						0.0		%
New Constellis Holdings Inc. (c) (e) (w)						Business Services												2,316						67						67						0.0		%
Nomacorc, LLC (c) (e) (u) (w)						Industrials												356,816						56						112						0.0		%
Park Ave RE Holdings, LLC (c) (e) (j) (o) (v)						Financials												719						2,818						3,300						0.2		%
PCX Aerostructures, LLC (c) (e) (p) (w)						Industrials												27,250						—						—						—		%
PCX Aerostructures, LLC (c) (e) (p) (w)						Industrials												1,356						—						2,305						0.2		%
PCX Aerostructures, LLC (c) (e) (p) (w)						Industrials												315						—						606						0.0		%
PennantPark Credit Opportunities Fund II, LP (a) (p)						Diversified Investment Vehicles												8,739						8,132						9,394						0.7		%
PT Network, LLC (c) (e) (u)						Healthcare												3						—						—						—		%
RMP Group, Inc. (c) (e) (u) (w)						Financials												223						164						340						0.0		%
Schweiger Dermatology Group, LLC (c) (e) (u) (w)						Healthcare												265,024						—						—						—		%
Siena Capital Finance, LLC (c) (j) (o)						Financials												35,839,400						36,549						39,423						2.8		%
Skillsoft Corp. (c) (e)						Technology												39,794						4,993						7,163						0.5		%
Smile Brands, Inc. (c) (e) (w)						Healthcare												712						815						1,409						0.1		%
Squan Holding Corp. (c) (e)						Telecom												180,835						—						—						—		%
SYNACOR, Inc. (e) (s)						Technology												59,785						—						131						0.0		%
Tap Rock Resources, LLC (c) (g) (p) (u)						Energy												18,356,442						9,067						10,463						0.7		%
Tax Advisors Group, LLC (c) (u) (w)						Financials												86						609						924						0.1		%
Tax Defense Network, LLC (c) (e) (p)						Consumer												147,099						425						—						—		%
Tax Defense Network, LLC (c) (e) (p)						Consumer												633,382						—						—						—		%
Team Waste, LLC (c) (p) (u) (w)						Industrials												128,483						2,569						2,681						0.2		%
Tennenbaum Waterman Fund, LP (a) (j) (p)						Diversified Investment Vehicles												10,000						10,000						10,002						0.7		%
Travelpro Products, Inc. (a) (c) (e) (w)						Consumer												447,007						506						—						—		%
United Biologics, LLC (c) (e) (u) (w)						Healthcare												39,769						132						21						0.0		%
United Biologics, LLC (c) (e) (u) (w)						Healthcare												3,155						—						—						—		%
United Biologics, LLC (c) (e) (u) (w)						Healthcare												4,206						31						15						0.0		%

The accompanying notes are an integral part of these consolidated financial statements.

18

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

March 31, 2021

(Unaudited)

Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
United Biologics, LLC (c) (e) (u) (w)						Healthcare												99,236						$	—					$	—					—		%
United Biologics, LLC (c) (e) (u) (w)						Healthcare												223						35						9						0.0		%
USASF Holdco, LLC (c) (e) (u)						Financials												10,000						10						—						—		%
USASF Holdco, LLC (c) (e) (u)						Financials												490						490						228						0.0		%
USASF Holdco, LLC (c) (e) (u)						Financials												139						139						278						0.0		%
Vantage Mobility International, LLC (c) (e) (p) (w)						Transportation												391,131						—						—						—		%
Vantage Mobility International, LLC (c) (e) (p) (w)						Transportation												3,280,908						3,140						—						—		%
Vantage Mobility International, LLC (c) (e) (p) (w)						Transportation												1,468,221						—						—						—		%
World Business Lenders, LLC (c) (e)						Financials												922,669						3,750						2,168						0.2		%
WPNT, LLC (c) (e) (o) (u)						Media/Entertainment												402,000						—						—						—		%
Wythe Will Tzetzo, LLC (c) (e) (u) (w)						Food & Beverage												22,312						302						—						—		%
YummyEarth, Inc. (c) (e) (w)						Food & Beverage												223						—						—						—		%
Subtotal Equity/Other																								$	436,498					$	479,417					33.5		%
TOTAL INVESTMENTS - 163.3% (b)																								$	2,387,511					$	2,339,657					163.3		%

Forward foreign currency contracts:

Counterparty

Contract to Deliver

In Exchange For

Maturity Date

Unrealized Depreciation

Goldman Sachs International

CAD 21,807

$

17,161

5/17/2021

$

185

_____________

(a)All of the Company's investments, except the investments noted by this footnote, are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the "1940 Act"). Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. Qualifying assets represent 74.9% of the Company's total assets. The significant majority of all investments held are deemed to be illiquid.

(b)Percentages are based on net assets as of March 31, 2021.

(c)The fair value of investments with respect to securities for which market quotations are not readily available is determined in good faith by the Company's Board of Directors as required by the 1940 Act. Such investments are valued using significant unobservable inputs (See Note 3 to the consolidated financial statements).

(d)All amounts are in thousands except share amounts.

(e)Non-income producing at March 31, 2021.

(f)The Company has various unfunded commitments to portfolio companies. Please refer to Note 7 - Commitments and Contingencies for details of these unfunded commitments.

(g)The commitment related to this investment is discretionary.

(h)The Company's investment or a portion thereof is pledged as collateral under the JPM Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

(i)The Company's investment or a portion thereof is pledged as collateral under the Wells Fargo Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

(j)The Company's investment or a portion thereof is pledged as collateral under the MassMutual Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

(k)The Collateralized Securities - subordinated notes are treated as equity investments and are entitled to recurring distributions which are generally equal to the remaining cash flow of the payments made by the underlying fund’s securities less contractual payments to debt holders and fund expenses. The estimated yield indicated is based upon a current projection of the amount and timing of these recurring distributions and the estimated amount of repayment of principal upon termination. Such projections are periodically reviewed and adjusted, and the estimated yield may not ultimately be realized.

The accompanying notes are an integral part of these consolidated financial statements.

19

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

March 31, 2021

(Unaudited)

(l)The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate ("LIBOR" or "L") or Prime ("P") and which reset daily, monthly, quarterly, or semiannually. For each, the Company has provided the spread over LIBOR or Prime and the current interest rate in effect at March 31, 2021. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable. For floating rate securities the all-in rate is disclosed within parentheses.

(m)The principal amount (par amount) is denominated in Canadian Dollars ("CAD")

(n)For equity investments in Collateralized Securities, the effective yield is presented in place of the investment coupon rate for each investment. Refer to footnote (k) for a further description of an equity investment in a Collateralized Security.

(o)The provisions of the 1940 Act classify investments based on the level of control that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be "non-controlled" when the Company owns 25% or less of the portfolio company's voting securities and/or does not have the power to exercise control over the management or policies of such portfolio company. A company is generally presumed to be "controlled" when the Company owns more than 25% of the portfolio company's voting securities and/or has the power to exercise control over the management or policies of such portfolio company. The Company classifies this investment as "controlled".

(p)The provisions of the 1940 Act classify investments further based on the level of ownership that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as "non-affiliated" when the Company owns less than 5% of a portfolio company's voting securities and "affiliated" when the Company owns 5% or more of a portfolio company's voting securities. The Company classifies this investment as "affiliated".

(q)Unless otherwise indicated, all investments in the consolidated schedule of investments are non-affiliated, non-controlled investments.

(r)The Company's investment is held through the Consolidated Holding Company, Kahala Aviation Holdings, LLC, which owns 49% of the operating company, Danish CRJ LTD.

(s)The investment is not a restricted security. All other securities are restricted securities.

(t)The investment is on non-accrual status as of March 31, 2021.

(u)Investments are held in the taxable wholly-owned, consolidated subsidiary, 54th Street Equity Holdings, Inc.

(v)The Company's investment is held through the consolidated subsidiary, Park Ave RE, Inc., which owns 100% of the equity of the operating company, Park Ave RE Holdings, LLC.

(w)The investment is held through BSP TCAP Acquisition Holdings LP which is an affiliated acquisition entity utilized for the Triangle Transaction. Due to certain restrictions, such as limits on the number of partners allowable within the equity structures of the newly acquired investments, these investments are still held within the acquisition entity as of March 31, 2021.

(x)The Company's investment is held through the consolidated subsidiaries, Kahala Aviation Holdings, LLC and Kahala Aviation US, Inc. which own 100% of the equity of the operating company, Kahala US OpCo LLC.

(y)The Company's investment is held through the consolidated subsidiary, Kahala Aviation Holdings, LLC, which owns 100% of the equity of the operating company, Kahala Ireland OpCo Designated Activity Company.

The accompanying notes are an integral part of these consolidated financial statements.

20

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

March 31, 2021

(Unaudited)

The following table shows the portfolio composition by industry grouping based on fair value at March 31, 2021:

			At March 31, 2021
			Investments at Fair Value						Percentage of Total Portfolio
Diversified Investment Vehicles (1)			$	366,496					15.7		%
Healthcare			325,353						13.9		%
Industrials			303,124						13.0		%
Business Services			286,248						12.2		%
Financials			183,176						7.8		%
Media/Entertainment			115,111						4.9		%
Consumer			108,310						4.6		%
Transportation			107,298						4.6		%
Technology			92,122						3.9		%
Software/Services			90,512						3.9		%
Food & Beverage			85,351						3.7		%
Paper & Packaging			71,613						3.1		%
Telecom			56,725						2.4		%
Energy			47,704						2.0		%
Education			45,894						2.0		%
Utilities			26,150						1.1		%
Gaming/Lodging			14,429						0.6		%
Chemicals			11,856						0.5		%
Broadcasting			2,185						0.1		%
Total			$	2,339,657					100.0		%

______________

(1) Includes BDCA's investment in BDCA Senior Loan Fund, LLC, which represents 13.0% of the fair value of investments as of March 31, 2021.

The accompanying notes are an integral part of these consolidated financial statements.

21

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020
Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Senior Secured First Lien Debt - 137.8% (b)
1236904 BC, Ltd. (c) (h) (i)						Software/Services						L+5.50% (5.65%), 3/4/2027						$	18,828					$	18,153					$	17,680					1.3		%
Abaco Systems Holding Corp. (c) (h) (i)						Industrials						L+6.00% (7.00%), 12/7/2021						22,973						22,886						22,973						1.6		%
ABC Financial Intermediate, LLC (c) (j)						Technology						L+4.25% (5.25%), 1/2/2025						19,308						18,829						17,667						1.3		%
Abercrombie & Fitch, Co. (a)						Consumer						8.75%, 7/15/2025						3,182						3,182						3,522						0.3		%
Accentcare, Inc. (c) (j)						Healthcare						L+5.00% (5.15%), 6/22/2026						13,337						13,232						13,337						1.0		%
Accentcare, Inc. (j)						Healthcare						L+5.00% (5.50%), 6/22/2026						2,765						2,751						2,765						0.2		%
Access Cig, LLC (j)						Business Services						L+3.75% (3.98%), 2/27/2025						4,277						4,236						4,228						0.3		%
Achilles Acquisition, LLC (j)						Financials						L+4.50% (5.25%), 11/16/2027						4,508						4,405						4,508						0.3		%
Acrisure, LLC (i) (j)						Financials						L+3.50% (3.65%), 2/16/2027						24,649						24,632						24,130						1.7		%
Advisor Group, Inc. (j)						Financials						L+5.00% (5.15%), 7/31/2026						7,984						7,879						7,897						0.6		%
Affordable Care Holding Corp. (c) (j)						Healthcare						L+4.75% (5.75%), 10/24/2022						7,690						7,286						7,460						0.5		%
AHP Health Partners, Inc. (i) (j)						Healthcare						L+4.50% (5.50%), 6/30/2025						13,558						13,502						13,592						1.0		%
Alchemy US Holdco 1, LLC (c) (h) (i) (j)						Industrials						L+5.50% (5.65%), 10/10/2025						7,203						6,922						6,878						0.5		%
Aldevron, LLC (h) (i) (j)						Healthcare						L+4.25% (5.25%), 10/13/2026						10,689						10,609						10,711						0.8		%
Alvogen Pharma US, Inc. (j)						Healthcare						L+5.25% (6.25%), 12/29/2023						12,818						12,781						12,241						0.9		%
AMI Entertainment Network, LLC (c)						Media/Entertainment						P+5.00% (10.25%), 7/21/2022						1,234						1,234						1,138						0.1		%
AMI Entertainment Network, LLC (c) (i)						Media/Entertainment						L+8.00% (9.00%), 7/21/2022						12,161						12,086						11,227						0.8		%
AMI Entertainment Network, LLC (c) (i)						Media/Entertainment						L+8.00% (9.00%), 7/21/2022						3,667						3,635						3,385						0.2		%
Anchor Glass Container Corp. (c) (k)						Paper & Packaging						L+5.00% (6.00%), 12/7/2023						9,600						9,600						8,093						0.6		%
AP Gaming I, LLC (a) (j)						Gaming/Lodging						L+3.50% (4.50%), 2/15/2024						7,544						7,540						7,191						0.5		%
Aq Carver Buyer, Inc. (h) (i)						Business Services						L+5.00% (6.00%), 9/23/2025						9,297						8,696						9,158						0.7		%
AqGen Ascensus, Inc. (j)						Business Services						L+4.00% (5.00%), 12/3/2026						18,206						18,148						18,233						1.3		%
Arch Global Precision, LLC (c) (h) (i)						Industrials						L+4.75% (5.00%), 4/1/2026						11,643						11,577						11,643						0.8		%
Arctic Holdco, LLC (c)						Paper & Packaging						L+6.00% (7.00%), 12/23/2026						387						377						377						0.0		%
Arctic Holdco, LLC (c) (i)						Paper & Packaging						L+6.00% (7.00%), 12/23/2026						16,492						16,080						16,080						1.1		%
ASG Technologies Group, Inc. (c) (j)						Software/Services						L+3.50% (4.50%), 7/31/2024						759						740						744						0.1		%
Asp Navigate Acquisition Corp. (j)						Healthcare						L+4.50% (5.50%), 10/6/2027						3,309						3,261						3,301						0.2		%
Athenahealth, Inc. (j)						Healthcare						L+4.50% (4.65%), 2/11/2026						12,663						12,531						12,629						0.9		%
Avaya Holdings Corp. (a) (j)						Technology						L+4.25% (4.41%), 12/16/2024						20,145						20,035						20,180						1.4		%
Aveanna Healthcare, LLC (h)						Healthcare						L+4.25% (5.25%), 3/18/2024						776						748						754						0.1		%

The accompanying notes are an integral part of these consolidated financial statements.

22

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020
Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Aveanna Healthcare, LLC (h)						Healthcare						L+5.50% (6.50%), 3/18/2024						$	5,961					$	5,799					$	5,819					0.4		%
Aveanna Healthcare, LLC (j)						Healthcare						L+6.25% (7.25%), 3/18/2024						3,629						3,562						3,574						0.3		%
Axiom Global, Inc. (c) (i)						Business Services						L+4.75% (4.90%), 10/1/2026						11,378						11,289						11,276						0.8		%
Barbri, Inc. (c) (j)						Education						L+4.00% (5.00%), 12/1/2023						6,953						6,675						6,849						0.5		%
BBB Industries, LLC (h)						Transportation						L+4.50% (4.65%), 8/1/2025						12,988						12,914						12,533						0.9		%
BCP Raptor, LLC (j)						Energy						L+4.25% (5.25%), 6/24/2024						13,748						13,673						12,554						0.9		%
BCP Renaissance, LLC (j)						Energy						L+3.50% (4.50%), 10/31/2024						3,384						3,375						3,263						0.2		%
Bearcat Buyer, Inc. (c) (i)						Healthcare						L+4.25% (5.25%), 7/9/2026						152						152						148						0.0		%
Bearcat Buyer, Inc. (c) (i)						Healthcare						L+4.25% (5.25%), 7/9/2026						734						734						712						0.1		%
Black Mountain Sand, LLC (c)						Energy						L+9.00% (10.50%), 6/28/2024						23,000						22,861						21,850						1.6		%
BMC Software Finance, Inc. (j)						Technology						L+4.25% (4.40%), 10/2/2025						14,461						14,362						14,384						1.0		%
Bomgar Corp. (j)						Technology						L+4.00% (4.15%), 4/18/2025						1,942						1,937						1,930						0.1		%
Boston Market Corp. (c) (t)						Food & Beverage						5.00% PIK, 4/1/2022						2,477						—						—						—		%
Bracket Intermediate Holding Corp. (c) (j)						Healthcare						L+4.25% (4.48%), 9/5/2025						5,255						5,193						5,177						0.4		%
Capstone Logistics (c)						Transportation						L+4.75% (5.75%), 11/12/2025						139						137						137						0.0		%
Capstone Logistics (c) (h)						Transportation						L+4.75% (5.75%), 11/12/2027						16,447						16,284						16,284						1.2		%
CareCentrix, Inc. (i) (j)						Healthcare						L+4.50% (4.72%), 4/3/2025						20,095						19,991						19,618						1.4		%
CCW, LLC (c) (h) (i) (t)						Food & Beverage						L+8.00% (9.00%), 3/22/2021						28,799						26,608						16,387						1.2		%
CCW, LLC (c) (t)						Food & Beverage						L+8.00% (9.00%), 3/22/2021						1,005						925						572						0.0		%
CDHA Holdings, LLC (c) (h) (i) (k)						Healthcare						L+7.25% (8.25%) 1.00% PIK, 8/24/2023						16,082						15,955						15,568						1.1		%
CDS U.S. Intermediate Holdings, Inc. (a) (c) (h) (p)						Media/Entertainment						L+6.00% (7.00%), 11/24/2025						2,041						1,941						1,940						0.1		%
Certara Holdco, Inc. (c) (j)						Healthcare						L+3.50% (3.75%), 8/15/2024						5,975						5,952						5,975						0.4		%
CHA Holdings, Inc. (c) (i)						Business Services						L+4.50% (5.50%), 4/10/2025						526						491						512						0.0		%
Chloe Ox Parent, LLC (c) (i)						Healthcare						L+5.25% (6.25%), 12/23/2024						22,535						21,866						21,866						1.6		%
Chloe Ox Parent, LLC (i) (j)						Healthcare						L+4.50% (5.50%), 12/23/2024						13,287						13,151						12,756						0.9		%
Clarion Events, Ltd. (a) (j)						Business Services						L+5.00% (6.00%), 9/30/2024						6,038						5,965						5,369						0.4		%
Claros Mortgage Trust, Inc. (j)						Financials						L+5.00% (6.00%), 8/10/2026						6,384						6,218						6,400						0.5		%
Clover Technologies Group, LLC (c) (j)						Industrials						L+7.50% (8.50%), 2/3/2024						1,471						1,471						1,301						0.1		%
CLP Health Services, Inc. (i)						Healthcare						L+5.00% (6.00%), 12/31/2026						10,009						9,844						9,934						0.7		%
Cold Spring Brewing, Co. (c) (h) (i)						Food & Beverage						L+4.75% (5.75%), 12/19/2025						8,774						8,700						8,774						0.6		%
CommerceHub, Inc. (i)						Technology						L+4.00% (4.75%), 12/29/2027						7,716						7,677						7,706						0.6		%

The accompanying notes are an integral part of these consolidated financial statements.

23

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020
Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Community Care Health Network, LLC (h) (j)						Healthcare						L+4.50% (4.65%), 2/17/2025						$	9,863					$	9,616					$	9,802					0.7		%
Connect Finco SARL (a) (j)						Telecom						L+4.50% (5.50%), 12/11/2026						4,607						4,487						4,618						0.3		%
Conservice Midco, LLC (j)						Business Services						L+4.25% (4.50%), 5/13/2027						3,101						2,974						3,101						0.2		%
CONSOL Energy, Inc. (j)						Energy						L+4.50% (4.65%), 9/27/2024						4,078						4,064						3,366						0.2		%
Conterra Ultra Broadband, LLC (c) (j)						Telecom						L+4.50% (4.65%), 4/30/2026						5,984						5,962						5,984						0.5		%
Corfin Industries, LLC (c) (h) (i)						Industrials						L+6.00% (7.00%), 2/5/2026						12,205						11,998						11,987						0.9		%
CRGT, Inc. (c) (j)						Software/Services						L+6.50% (7.50%), 2/28/2022						7,827						7,715						7,513						0.5		%
CRS-SPV, Inc. (c) (k) (o) (x)						Industrials						L+4.50% (5.50%), 3/8/2021						62						62						62						0.0		%
CVENT, Inc. (j)						Technology						L+3.75% (3.90%), 11/29/2024						7,843						7,492						7,529						0.5		%
Dealer Tire, LLC (j)						Retail						L+4.25% (4.40%), 12/12/2025						3,992						3,977						3,955						0.3		%
Drilling Info Holdings, Inc. (c) (i)						Business Services						L+4.25% (4.40%), 7/30/2025						7,097						6,851						6,884						0.5		%
Dunn Paper, Inc. (c) (j)						Paper & Packaging						L+4.75% (5.75%), 8/26/2022						581						548						542						0.0		%
Dynagrid Holdings, LLC (c)						Utilities						L+6.00% (7.00%), 12/18/2025						113						113						111						0.0		%
Dynagrid Holdings, LLC (c) (i)						Utilities						L+6.00% (7.00%), 12/18/2025						14,481						14,193						14,193						1.0		%
Dynasty Acqusition Co., Inc. (i) (j)						Industrials						L+3.50% (3.75%), 4/6/2026						3,038						2,866						2,886						0.2		%
Dynasty Acqusition Co., Inc. (i) (j)						Industrials						L+3.50% (3.75%), 4/6/2026						5,651						5,328						5,368						0.4		%
Emerald 2, Ltd. (a) (j)						Industrials						L+3.25% (3.50%), 7/10/2026						522						517						515						0.0		%
eResearchTechnology, Inc. (j)						Healthcare						L+4.50% (5.50%), 2/4/2027						1,564						1,563						1,547						0.1		%
Fastlane Parent Co, Inc. (j)						Transportation						L+4.50% (4.65%), 2/4/2026						1,585						1,559						1,577						0.1		%
Florida Food Products, LLC (c) (h)						Food & Beverage						L+6.50% (7.50%), 9/6/2025						21,890						21,525						21,890						1.6		%
Florida Food Products, LLC (c) (i)						Food & Beverage						L+7.25% (8.25%), 9/8/2025						1,324						1,244						1,324						0.1		%
Florida Food Products, LLC (c) (k)						Food & Beverage						L+6.50% (7.50%), 9/6/2023						461						461						461						0.0		%
Foresight Energy Operating, LLC (c) (p)						Energy						L+8.00% (9.50%), 6/30/2027						1,326						1,326						1,354						0.1		%
Frontier Communications Corp.						Telecom						5.00%, 5/1/2028						1,240						1,240						1,290						0.1		%
Frontier Communications Corp. (h)						Telecom						L+4.75% (5.75%), 10/8/2021						18,988						18,867						19,047						1.4		%
Gold Standard Baking, Inc. (c)						Food & Beverage						L+6.50% (7.50%) 2.00% PIK, 7/25/2022						3,131						2,660						1,252						0.1		%
Green Energy Partners/Stonewall, LLC						Utilities						L+5.50% (6.50%), 11/15/2021						1,310						1,310						1,201						0.1		%
Green Energy Partners/Stonewall, LLC						Utilities						L+5.50% (6.50%), 11/15/2021						989						989						907						0.1		%
Greenway Health, LLC (c) (j)						Healthcare						L+3.75% (4.75%), 2/16/2024						7,782						6,965						7,160						0.5		%
HAH Group Holding Company, LLC (c) (j)						Healthcare						L+5.00% (6.00%), 10/29/2027						5,871						5,785						5,785						0.4		%
HC2 Holdings, Inc. (c) (k)						Industrials						11.50%, 12/1/2021						7,818						7,792						7,685						0.5		%

The accompanying notes are an integral part of these consolidated financial statements.

24

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020
Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Health Plan One, Inc. (c) (k)						Financials						L+7.50% (8.50%), 7/15/2025						$	10,695					$	10,210					$	10,485					0.7		%
Heartland Dental, LLC (j)						Healthcare						L+3.50% (3.65%), 4/30/2025						4,197						4,033						4,088						0.3		%
Higginbotham Insurance Agency, Inc. (c) (h)						Financials						L+5.75% (6.50%), 11/25/2026						11,579						11,408						11,408						0.8		%
HireRight, Inc. (i)						Business Services						L+3.75% (3.90%), 7/11/2025						2,885						2,868						2,790						0.2		%
Hospice Care Buyer, Inc. (c)						Healthcare						L+6.50% (7.50%), 12/9/2026						396						396						396						0.0		%
Hospice Care Buyer, Inc. (c) (h)						Healthcare						L+6.50% (7.50%), 12/9/2026						21,876						21,183						21,226						1.5		%
HS Purchaser, LLC (c) (j)						Software/Services						L+4.75% (5.75%), 11/19/2026						160						160						160						0.0		%
ICR Operations, LLC (c) (h) (i)						Business Services						L+5.00% (6.00%), 3/26/2025						17,145						16,932						16,728						1.2		%
ICR Operations, LLC (c) (i)						Business Services						L+5.00% (6.00%), 3/26/2025						6,650						6,488						6,488						0.5		%
ICR Operations, LLC (c) (k)						Business Services						L+5.00% (6.00%), 3/26/2024						907						907						885						0.1		%
Ideal Tridon Holdings, Inc. (c)						Industrials						L+5.75% (6.75%), 7/31/2024						46						45						46						0.0		%
Ideal Tridon Holdings, Inc. (c) (h) (i)						Industrials						L+5.75% (6.75%), 7/31/2024						26,837						26,612						26,837						1.9		%
Ideal Tridon Holdings, Inc. (c) (h) (i)						Industrials						L+5.75% (6.75%), 7/31/2024						828						817						828						0.1		%
Ideal Tridon Holdings, Inc. (c) (k)						Industrials						L+5.75% (6.75%), 7/31/2023						442						442						442						0.0		%
IDERA, Inc. (j)						Technology						L+4.00% (5.00%), 6/28/2024						5,475						5,458						5,458						0.4		%
Integral Ad Science, Inc. (c) (k)						Software/Services						L+7.25% (8.25%) 1.25% PIK, 7/19/2024						15,464						15,283						15,464						1.1		%
Integrated Efficiency Solutions, Inc. (c) (x)						Industrials						L+2.50% (3.50%) 1.50% PIK, 6/30/2022						3,833						3,833						2,990						0.2		%
Integrated Global Services, Inc. (c) (i)						Industrials						L+6.00% (7.00%), 2/4/2026						11,414						11,221						11,018						0.8		%
Integrated Global Services, Inc. (c) (k)						Industrials						L+6.00% (7.00%), 2/4/2026						1,622						1,622						1,565						0.1		%
Intelsat Jackson Holdings, SA (a)						Telecom						8.63%, 1/2/2024						2,367						2,375						2,403						0.2		%
Intelsat Jackson Holdings, SA (a)						Telecom						P+4.75% (8.00%), 11/27/2023						1,124						1,121						1,138						0.1		%
Internap Corp. (c) (h) (p)						Business Services						L+6.50% (7.50%) 5.50% PIK, 5/8/2025						5,955						5,955						5,181						0.4		%
International Cruise & Excursions, Inc. (c) (i)						Business Services						L+5.25% (6.25%), 6/6/2025						4,951						4,916						4,159						0.3		%
Iri Holdings, Inc. (j)						Business Services						L+4.25% (4.40%), 12/1/2025						7,900						7,822						7,801						0.6		%
Jakks Pacific, Inc. (c) (p)						Consumer						10.50%, 2.50% PIK, 2/9/2023						17,104						16,097						17,104						1.2		%
K2 Intelligence Holdings, Inc. (c) (h) (i)						Business Services						L+4.75% (5.75%), 9/23/2024						10,251						10,099						10,082						0.7		%
Kahala Ireland OpCo Designated Activity Company (a) (c) (k) (o)						Transportation						L+8.00% (13.00%), 12/22/2028						18,549						18,549						18,549						1.3		%
Kaman Distribution Corp. (c) (h) (i)						Industrials						L+5.00% (5.25%), 8/26/2026						21,283						19,729						19,793						1.4		%
KidKraft, Inc. (c) (t) (x)						Consumer						L+5.50% (6.50%) PIK, 8/15/2022						1,043						50						335						0.0		%
KMTEX, LLC (c) (g) (o)						Chemicals						P+3.00% (6.25%) PIK, 6/16/2025						829						829						829						0.1		%
KMTEX, LLC (c) (g) (o)						Chemicals						P+3.00% (6.25%) PIK, 6/16/2025						218						218						218						0.0		%

The accompanying notes are an integral part of these consolidated financial statements.

25

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020
Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
KMTEX, LLC (c) (o)						Chemicals						P+3.00% (6.25%) PIK, 6/16/2025						$	3,230					$	3,230					$	3,230					0.2		%
Labrie Environmental Group, LLC (a) (c) (h)						Industrials						L+5.50% (6.50%), 9/1/2026						22,809						22,378						22,353						1.6		%
Lakeland Tours, LLC (c) (h)						Education						13.25% PIK, 9/27/2027						4,101						2,129						2,051						0.2		%
Lakeland Tours, LLC (c) (h)						Education						L+12.00% (13.25%) 6.00% PIK, 9/25/2023						1,783						1,783						1,783						0.1		%
Lakeland Tours, LLC (c) (h)						Education						L+7.50% (8.75%) 6.00% PIK, 9/25/2025						3,369						3,352						3,369						0.2		%
Lakeland Tours, LLC (c) (h)						Education						L+7.50% (8.75%) 6.00% PIK, 9/25/2025						4,083						3,622						3,593						0.3		%
Lakeview Health Holdings, Inc. (c) (t) (x)						Healthcare						9.75% PIK, 12/15/2021						142						124						36						0.0		%
Lakeview Health Holdings, Inc. (c) (t) (x)						Healthcare						9.75% PIK, 12/15/2021						4,136						2,671						1,034						0.1		%
LightSquared, LP						Telecom						15.50%, 11/1/2023						1,540						1,540						1,494						0.1		%
LSCS Holdings, Inc. (c) (j)						Healthcare						L+4.25% (4.51%), 3/17/2025						1,595						1,555						1,547						0.1		%
LSCS Holdings, Inc. (c) (j)						Healthcare						L+4.25% (4.50%), 3/17/2025						6,180						6,025						5,994						0.4		%
Manna Pro Products, LLC (c) (i)						Consumer						L+6.00% (7.00%), 12/10/2026						24,659						24,050						24,050						1.7		%
McDonald Worley, P.C. (c)						Business Services						21.00% PIK, 12/31/2024						10,047						10,047						10,047						0.7		%
MCS Acquisition Corp. (c)						Business Services						L+6.00% (7.00%), 10/2/2025						788						788						788						0.1		%
MED Parentco, LP (j)						Healthcare						L+4.25% (4.40%), 8/31/2026						1,426						1,426						1,402						0.1		%
MED Parentco, LP (j)						Healthcare						L+4.25% (4.40%), 8/31/2026						5,688						5,642						5,590						0.4		%
Medallion Midland Acquisition, LP (j)						Energy						L+3.25% (4.25%), 10/30/2024						3,651						3,646						3,578						0.3		%
Medical Depot Holdings, Inc. (c) (h) (i)						Healthcare						L+7.50% (8.50%) 2.00% PIK, 1/3/2023						19,236						18,652						16,158						1.2		%
Medical Solutions Holdings, Inc. (c) (j)						Healthcare						L+4.50% (5.50%), 6/14/2024						2,615						2,611						2,602						0.2		%
MGTF Radio Company, LLC (c) (k) (o)						Media/Entertainment						L+6.00% (7.00%), 4/1/2024						55,146						55,042						43,400						3.1		%
Midwest Can Company, LLC (c) (h) (i)						Paper & Packaging						L+6.00% (7.00%), 3/2/2026						29,983						29,438						29,383						2.1		%
Millennium Park HoldCo, Inc. (c) (j)						Business Services						L+4.25% (5.25%), 6/5/2024						908						894						881						0.1		%
Miller Environmental Group, Inc. (c) (h) (i)						Business Services						L+6.50% (7.50%), 3/15/2024						10,483						10,324						10,483						0.7		%
Miller Environmental Group, Inc. (c) (h) (i)						Business Services						L+6.50% (7.50%), 3/15/2024						11,463						11,316						11,463						0.8		%
Ministry Brands, LLC (c) (i)						Software/Services						L+4.00% (5.00%), 12/2/2022						5,670						5,617						5,599						0.4		%
Mintz Group, LLC (c) (i)						Business Services						L+4.75% (5.75%), 3/18/2026						4,711						4,670						4,670						0.3		%
Monitronics International, Inc. (a) (k)						Business Services						L+6.50% (7.75%), 3/29/2024						5,565						5,572						4,908						0.4		%
Montreign Operating Company, LLC (c)						Gaming/Lodging						L+3.25% (3.40%), 3/22/2021						7,896						7,880						7,896						0.6		%
MSG National Properties, LLC (a) (c) (h)						Media/Entertainment						L+6.25% (7.00%), 11/12/2025						12,311						11,950						11,950						0.9		%
Muth Mirror Systems, LLC (c) (h) (i)						Technology						L+5.25% (6.25%), 4/23/2025						15,459						15,237						13,836						1.0		%
National Intergovernmental Purchasing Alliance Co. (j)						Business Services						L+3.75% (4.00%), 5/23/2025						1,573						1,559						1,553						0.1		%

The accompanying notes are an integral part of these consolidated financial statements.

26

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020
Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Navitas Midstream Midland Basin, LLC (j)						Energy						L+4.50% (5.50%), 12/13/2024						$	21,563					$	18,958					$	21,199					1.5		%
New Amsterdam Software Bidco, LLC (c) (h) (i)						Technology						L+5.00% (6.00%), 5/1/2026						6,073						5,980						6,073						0.4		%
New Star Metals, Inc. (c) (h) (i)						Industrials						L+6.00% (7.50%), 7/10/2023						21,864						21,500						21,024						1.5		%
NN, Inc. (a) (h)						Industrials						L+5.75% (5.90%), 10/19/2022						1,011						978						1,005						0.1		%
NN, Inc. (a) (h)						Industrials						L+5.75% (6.50%), 10/19/2022						918						877						913						0.1		%
Norvax, LLC (c) (k)						Business Services						L+6.50% (7.50%), 9/12/2025						11,374						11,139						11,374						0.8		%
NTM Acquisition Corp. (c) (h) (i)						Media/Entertainment						L+7.25% (8.25%) 1.00% PIK, 6/7/2024						22,129						22,050						19,916						1.4		%
Olaplex, Inc. (c) (h) (i)						Consumer						L+6.50% (7.50%), 1/8/2026						17,231						16,943						17,231						1.2		%
ORG GC Holdings, LLC (c) (h) (t)						Business Services						L+6.75% (7.75%), 7/31/2022						21,624						21,457						14,306						1.0		%
Pelican Products, Inc. (c) (j)						Consumer						L+3.50% (4.50%), 5/1/2025						2,621						2,578						2,529						0.2		%
Perstorp Holding Ab (a) (j)						Chemicals						L+4.75% (5.02%), 2/27/2026						8,868						8,774						8,010						0.6		%
Petrochoice Holdings, Inc. (c) (j)						Industrials						L+5.00% (6.00%), 8/19/2022						2,038						1,882						1,900						0.1		%
PG&E Corp. (a) (j)						Utilities						L+4.50% (5.50%), 6/23/2025						2,888						2,865						2,918						0.2		%
Planet Equity Group, LLC (c) (h)						Business Services						L+5.25% (6.25%), 11/18/2025						1,089						1,070						1,070						0.1		%
Planet Equity Group, LLC (c) (h)						Business Services						L+5.25% (6.25%), 11/18/2025						14,792						14,611						14,792						1.1		%
PlayPower, Inc. (c) (h) (i)						Industrials						L+5.50% (5.74%), 5/8/2026						25,350						25,059						24,083						1.7		%
Premier Dental Services, Inc. (c) (h) (i) (j)						Healthcare						L+5.25% (6.25%), 6/30/2023						32,590						32,448						31,873						2.3		%
Premier Global Services, Inc. (c) (j)						Telecom						L+6.50% (7.50%), 6/8/2023						6,069						5,929						3,077						0.2		%
Premise Health Holding Corp. (c) (j)						Healthcare						L+3.50% (3.75%), 7/10/2025						730						712						721						0.1		%
Prototek, LLC (c)						Industrials						L+5.75% (6.75%), 10/20/2026						677						677						663						0.0		%
Prototek, LLC (c) (h)						Industrials						L+5.75% (6.75%), 10/20/2026						11,285						11,040						11,040						0.8		%
PSC Industrial Holdings Corp. (j)						Industrials						L+3.75% (4.75%), 10/11/2024						4,542						4,417						4,383						0.3		%
PSKW, LLC (c) (h) (i)						Healthcare						L+6.25% (7.25%), 3/9/2026						29,775						29,132						29,477						2.1		%
PT Network, LLC (c) (h)						Healthcare						L+7.50% (8.50%) 2.00% PIK, 11/30/2023						16,999						16,941						15,418						1.1		%
Questex, Inc. (c) (h) (i)						Media/Entertainment						L+5.75% (6.75%), 9/9/2024						15,827						15,633						14,529						1.0		%
Questex, Inc. (c) (k)						Media/Entertainment						L+5.75% (6.75%), 9/9/2024						1,895						1,895						1,738						0.1		%
RE Investment Company, LLC (c)						Industrials						L+8.00% (9.00%), 9/25/2025						5,674						5,674						5,539						0.4		%
RE Investment Company, LLC (c) (h)						Industrials						L+8.00% (9.00%), 9/25/2025						13,616						13,294						13,293						0.9		%
Red River Technology, LLC (c) (h) (i)						Business Services						L+5.00% (6.00%), 8/30/2024						23,431						23,168						23,431						1.7		%
Reddy Ice Corp. (c) (h) (i)						Food & Beverage						L+6.50% (7.50%), 7/1/2025						19,343						18,909						18,811						1.3		%

The accompanying notes are an integral part of these consolidated financial statements.

27

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020
Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Reddy Ice Corp. (c) (k)						Food & Beverage						L+6.50% (7.50%), 7/1/2025						$	1,271					$	1,255					$	1,233					0.1		%
Refresh Parent Holdings, Inc. (c)						Healthcare						L+6.50% (7.50%), 12/9/2026						320						320						312						0.0		%
Refresh Parent Holdings, Inc. (c) (h)						Healthcare						L+6.50% (7.50%), 12/9/2026						9,583						9,346						9,345						0.7		%
Regionalcare Hospital Partners Holdings, Inc. (j)						Healthcare						L+3.75% (3.90%), 11/14/2025						18,195						17,993						18,125						1.3		%
REP TEC Intermediate Holdings, Inc. (c) (h) (i)						Software/Services						L+6.50% (7.50%), 6/19/2025						6,980						6,793						6,823						0.5		%
Resco Products, Inc. (c)						Industrials						L+7.00% (9.00%) 2.00% PIK, 6/5/2022						9,700						9,700						8,924						0.6		%
RXB Holdings, Inc. (h)						Healthcare						L+5.25% (6.00%), 12/20/2027						8,095						7,933						8,014						0.6		%
Safety Products/JHC Acquisition Corp. (j)						Industrials						L+4.50% (4.65%), 6/28/2026						17,539						17,411						16,442						1.2		%
Safety Products/JHC Acquisition Corp. (j)						Industrials						L+4.50% (4.65%), 6/28/2026						948						948						889						0.1		%
Schenectady International Group, Inc. (j)						Chemicals						L+4.75% (4.90%), 10/15/2025						21,509						21,161						21,105						1.5		%
SCIH Salt Holdings, Inc. (c)						Industrials						L+4.00% (5.00%), 3/17/2025						1,153						1,153						1,147						0.1		%
SCIH Salt Holdings, Inc. (h) (i)						Industrials						L+4.50% (5.50%), 3/16/2027						24,850						24,627						24,819						1.8		%
SFR Group, SA (a) (i) (j)						Telecom						L+4.00% (4.24%), 8/14/2026						12,836						12,748						12,761						0.9		%
Shields Health Solutions Holdings, LLC (h) (i)						Healthcare						L+5.00% (5.15%), 8/19/2026						6,893						6,837						6,755						0.5		%
Sierra Acquisition, Inc. (c) (j)						Food & Beverage						L+4.00% (5.00%), 11/11/2024						4,953						4,705						4,879						0.4		%
SitusAMC Holdings Corp. (c) (h)						Financials						L+4.75% (5.75%), 6/28/2025						1,473						1,452						1,454						0.1		%
SitusAMC Holdings Corp. (c) (h) (i)						Financials						L+4.75% (5.75%), 6/30/2025						8,394						8,298						8,283						0.6		%
SitusAMC Holdings Corp. (c) (k)						Financials						L+4.75% (5.75%), 6/30/2025						752						742						742						0.1		%
Skillsoft Corp. (c)						Technology						L+7.50% (8.50%), 12/27/2024						725						685						725						0.1		%
Skillsoft Corp. (c)						Technology						L+7.50% (8.50%), 12/27/2024						638						606						638						0.0		%
Skillsoft Corp. (c) (h)						Technology						L+7.50% (8.50%), 4/28/2025						12,918						12,857						12,918						0.9		%
Sotera Health Holdings, LLC (j)						Healthcare						L+4.50% (5.50%), 12/11/2026						3,187						3,110						3,196						0.2		%
Spirit Aerosystems, Inc. (a) (j)						Industrials						L+5.25% (6.00%), 1/15/2025						2,581						2,573						2,600						0.2		%
SSH Group Holdings, Inc. (j)						Education						L+4.25% (4.50%), 7/30/2025						10,627						10,601						10,096						0.7		%
St. Croix Hospice Acquisition Corp. (c) (i)						Healthcare						L+6.25% (7.25%), 10/30/2026						25,939						25,435						25,436						1.8		%
Subsea Global Solutions, LLC (c) (i)						Business Services						L+7.00% (8.00%), 3/29/2023						4,744						4,682						4,611						0.3		%
Subsea Global Solutions, LLC (c) (i)						Business Services						L+7.00% (8.00%), 3/29/2023						8,001						7,930						7,776						0.6		%
Subsea Global Solutions, LLC (c) (k)						Business Services						L+7.00% (8.00%), 3/29/2023						385						385						376						0.0		%
Tax Defense Network, LLC (c) (p) (t)						Consumer						10.00% PIK, 9/30/2021						3,311						2,986						3,311						0.2		%
Tax Defense Network, LLC (c) (p) (t)						Consumer						L+6.00% (10.00%) PIK, 9/30/2021						33,829						21,646						2,368						0.2		%
Tax Defense Network, LLC (c) (p) (t)						Consumer						L+6.00% (10.00%) PIK, 9/30/2021						6,005						3,833						420						0.0		%

The accompanying notes are an integral part of these consolidated financial statements.

28

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020
Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
The Dun & Bradstreet Corp. (j)						Business Services						L+3.75% (3.90%), 2/6/2026						$	9,925					$	9,780					$	9,921					0.7		%
Tillamook Country Smoker, LLC (c) (h)						Food & Beverage						L+7.75% (8.75%), 5/19/2022						9,834						9,794						9,547						0.7		%
Tillamook Country Smoker, LLC (c) (k)						Food & Beverage						L+7.75% (8.75%), 5/19/2022						2,561						2,561						2,486						0.2		%
Tivity Health, Inc. (a) (j)						Healthcare						L+4.25% (4.40%), 3/8/2024						420						417						415						0.0		%
Tivity Health, Inc. (a) (j)						Healthcare						L+5.25% (5.40%), 3/6/2026						1,761						1,728						1,742						0.1		%
Trademark Global, LLC (c) (k) (x)						Consumer						L+6.00% (7.00%), 10/31/2022						1,943						1,943						1,904						0.1		%
Traverse Midstream Partners, LLC (j)						Energy						L+5.50% (6.50%), 9/27/2024						15,445						15,164						15,117						1.1		%
Trilogy International Partners, LLC (a)						Telecom						8.88%, 5/1/2022						14,875						14,852						14,317						1.0		%
Trilogy International Partners, LLC (a) (c) (h)						Telecom						10.00%, 5/1/2022						6,298						6,044						6,044						0.4		%
University of St. Augustine Acquisition Corp. (c) (h) (i)						Education						L+4.25% (5.25%), 2/2/2026						23,762						23,330						23,999						1.7		%
Urban One, Inc. (j)						Media/Entertainment						L+4.00% (5.00%), 4/18/2023						539						510						498						0.0		%
Veritext Corp. (h) (i)						Business Services						L+3.50% (3.65%), 8/1/2025						4,924						4,924						4,851						0.4		%
Verscend Holding Corp. (j)						Healthcare						L+4.50% (4.65%), 8/27/2025						1,733						1,702						1,729						0.1		%
Vertex Aerospace Services Corp. (h) (i)						Industrials						L+4.50% (4.65%), 6/30/2025						8,133						8,107						8,092						0.6		%
Vyaire Medical, Inc. (c) (j)						Healthcare						L+4.75% (5.75%), 4/16/2025						7,912						7,716						6,330						0.5		%
WaterBridge Midstream Operating, LLC (j)						Energy						L+5.75% (6.75%), 6/22/2026						13,769						13,539						11,781						0.9		%
Wirepath, LLC (c) (j)						Consumer						L+4.00% (4.26%), 8/5/2024						7,883						7,627						7,627						0.5		%
WMK, LLC (c)						Business Services						L+6.25% (7.25%), 9/5/2025						356						353						339						0.0		%
WMK, LLC (c) (h) (i)						Business Services						L+5.75% (6.75%), 9/5/2025						19,108						18,853						18,176						1.3		%
WMK, LLC (c) (k)						Business Services						L+6.25% (7.25%), 9/5/2024						2,182						2,182						2,074						0.1		%
WMK, LLC (c) (k)						Business Services						L+6.25% (7.25%), 9/5/2025						2,584						2,576						2,458						0.2		%
WP CityMD Bidco, LLC (j)						Healthcare						L+4.50% (5.50%), 8/13/2026						7,149						7,152						7,134						0.5		%
Wrench Group, LLC (c) (j)						Consumer						L+4.00% (4.25%), 4/30/2026						3,185						3,145						3,121						0.2		%
YI, LLC (c) (j)						Healthcare						L+4.00% (5.00%), 11/7/2024						9,068						8,342						8,614						0.6		%
Zelis Payments Buyer, Inc. (j)						Healthcare						L+4.75% (4.90%), 9/30/2026						2,044						2,049						2,047						0.1		%
Subtotal Senior Secured First Lien Debt																								$	2,009,503					$	1,928,623					137.8		%
Senior Secured Second Lien Debt - 17.1% (b)
Accentcare, Inc. (c) (h)						Healthcare						L+8.75% (9.50%), 6/21/2027						$	30,152					$	29,485					$	30,152					2.2		%
Anchor Glass Container Corp. (c) (k)						Paper & Packaging						L+7.75% (8.75%), 12/6/2024						6,667						6,615						2,553						0.2		%
Aruba Investments Holdings, LLC (c) (i)						Chemicals						L+7.75% (8.50%), 11/24/2028						3,759						3,703						3,703						0.3		%
Astro AB Merger Sub, Inc. (a) (c) (h)						Financials						L+8.00% (9.00%), 4/30/2025						9,638						9,602						9,638						0.7		%

The accompanying notes are an integral part of these consolidated financial statements.

29

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020
Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Avatar Purchaser, Inc. (c) (j)						Software/Services						L+7.50% (8.50%), 11/17/2025						$	11,716					$	11,502					$	11,517					0.8		%
Aveanna Healthcare, LLC (h)						Healthcare						L+8.00% (9.00%), 3/17/2025						5,883						5,836						5,854						0.4		%
Barracuda Networks, Inc. (h)						Software/Services						L+6.75% (7.50%), 10/30/2028						4,698						4,652						4,733						0.3		%
BrandMuscle Holdings, Inc. (c) (k)						Business Services						L+8.50% (9.50%), 6/1/2022						24,500						24,393						23,398						1.7		%
Carlisle FoodService Products, Inc. (c) (h)						Consumer						L+7.75% (8.75%), 3/20/2026						10,719						10,579						10,001						0.7		%
CDS U.S. Intermediate Holdings, Inc. (a) (c) (p) (t)						Media/Entertainment						L+8.00% (9.00%) 7.00% PIK, 11/24/2027						1,339						1,104						1,104						0.1		%
CommerceHub, Inc. (h)						Technology						L+7.00% (7.75%), 12/2/2028						12,360						12,298						12,391						0.9		%
Dentalcorp Perfect Smile, ULC (a) (c) (k)						Healthcare						L+7.50% (8.50%), 6/8/2026						10,139						10,069						10,098						0.7		%
Edelman Financial Services, LLC (a) (j)						Financials						L+6.75% (6.90%), 7/20/2026						8,852						8,837						8,852						0.6		%
HAH Group Holding Company, LLC (c) (h)						Healthcare						L+8.50% (9.50%), 10/20/2028						12,445						12,140						12,140						0.9		%
Hyland Software, Inc. (h)						Technology						L+7.00% (7.75%), 7/7/2025						6,075						6,094						6,111						0.4		%
MLN US Holdco, LLC (a) (c) (h) (i)						Technology						L+8.75% (8.90%), 11/30/2026						3,000						2,956						1,941						0.1		%
PetVet Care Centers, LLC (c) (h)						Healthcare						L+6.25% (6.40%), 2/13/2026						3,539						3,528						3,486						0.3		%
PI US Holdco III, Ltd. (a) (c) (k)						Financials						L+7.25% (8.25%), 12/22/2025						7,865						7,810						7,802						0.6		%
Project Boost Purchaser, LLC (k)						Business Services						L+8.00% (8.15%), 5/31/2027						1,848						1,848						1,783						0.1		%
QuickBase, Inc. (c)						Technology						L+8.00% (8.15%), 4/2/2027						7,484						7,367						7,353						0.5		%
Recess Holdings, Inc. (c) (h)						Industrials						L+7.75% (8.75%), 9/29/2025						16,134						15,968						14,843						1.1		%
Renaissance Holding Corp. (c)						Software/Services						L+7.00% (7.15%), 5/29/2026						8,456						8,341						8,287						0.6		%
River Cree Enterprises, LP (a) (c) (m)						Gaming/Lodging						10.00%, 5/17/2025						CAD	21,275					16,459						14,245						1.0		%
SSH Group Holdings, Inc. (c) (h)						Education						L+8.25% (8.50%), 7/30/2026						10,122						10,051						9,717						0.7		%
TIBCO Software, Inc. (k)						Technology						L+7.25% (7.40%), 3/3/2028						13,020						12,961						13,129						0.9		%
Travelpro Products, Inc. (a) (c) (m) (x)						Consumer						13.00%, 2.00% PIK, 11/21/2022						CAD	2,966					2,282						1,894						0.1		%
Travelpro Products, Inc. (a) (c) (x)						Consumer						14.50%, 11.25% PIK, 11/21/2022						2,563						2,563						2,083						0.1		%
Vantage Mobility International, LLC (c) (p) (t) (x)						Transportation						L+6.00% (7.00%) PIK, 9/9/2021						3,341						2,914						944						0.1		%
Subtotal Senior Secured Second Lien Debt																								$	251,957					$	239,752					17.1		%
Subordinated Debt - 8.5% (b)
Captek Softgel International, Inc. (c) (t) (x)						Health/Fitness						11.50%, 1.50% PIK, 1/30/2023						$	7,208					$	7,071					$	6,012					0.4		%
Del Real, LLC (c) (t) (x)						Food & Beverage						14.50%, 2.00% PIK, 4/1/2023						3,639						3,131						3,071						0.2		%
DoorDash, Inc. (c) (k)						Technology						10.00% PIK, 3/1/2025						24,331						24,052						24,696						1.8		%
Gdb Debt Recovery Authority Of Commonwealth Puerto Rico (a)						Financials						7.50%, 8/20/2040						13,003						9,700						9,963						0.7		%
HemaSource, Inc. (c) (k) (x)						Healthcare						11.00%, 1/1/2024						2,235						2,173						2,235						0.2		%

The accompanying notes are an integral part of these consolidated financial statements.

30

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020
Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Park Ave RE Holdings, LLC (c) (k) (o) (w)						Financials						13.00%, 12/31/2021						$	37,237					$	37,237					$	37,237					2.7		%
PCX Aerostructures, LLC (c) (k) (p) (x)						Industrials						6.00%, 8/9/2021						7,995						6,717						9,859						0.7		%
Siena Capital Finance, LLC (c) (k) (o)						Financials						12.50%, 5/15/2024						25,500						25,493						25,500						1.8		%
Subtotal Subordinated Debt																								$	115,574					$	118,573					8.5		%
Collateralized Securities - 7.6% (b)
Collateralized Securities - Debt Investments
Avery Point CLO, Ltd. 15-6A E1 (a) (c) (k)						Diversified Investment Vehicles						L+5.50% (5.72%), 8/6/2027						$	3,500					$	3,202					$	3,074					0.2		%
Babson CLO, Ltd. 16-2A ER (a) (c)						Diversified Investment Vehicles						L+6.50% (6.72%), 7/20/2028						2,650						2,402						2,588						0.2		%
Ballyrock, Ltd. 16-1A ER (a) (c)						Diversified Investment Vehicles						L+6.95% (7.19%), 10/16/2028						2,600						2,305						2,554						0.2		%
Catamaran CLO, Ltd. 16-1A D (a) (c) (k)						Diversified Investment Vehicles						L+6.65% (6.87%), 1/18/2029						7,250						7,076						6,982						0.5		%
Cedar Funding, Ltd. 14-4A ER (a) (c)						Diversified Investment Vehicles						L+6.36% (6.57%), 7/23/2030						2,500						2,214						2,406						0.2		%
CIFC Funding, Ltd. 15-5A DR (a) (c)						Diversified Investment Vehicles						L+5.55% (5.76%), 10/25/2027						3,000						2,660						2,797						0.2		%
Dryden Senior Loan Fund 17-49A E (a) (c) (k)						Diversified Investment Vehicles						L+6.30% (6.52%), 7/18/2030						3,000						2,900						2,854						0.2		%
Dryden Senior Loan Fund 2014-36A ER2 (a) (c) (k)						Diversified Investment Vehicles						L+6.88% (7.12%), 4/15/2029						2,000						1,953						1,905						0.1		%
Eaton Vance CDO, Ltd. 15-1A FR (a) (c) (k)						Diversified Investment Vehicles						L+7.97% (8.19%), 1/20/2030						2,000						1,819						1,717						0.1		%
Greywolf CLO, Ltd. 20-3RA ER (a) (c) (k)						Diversified Investment Vehicles						L+8.74% (8.96%), 4/15/2033						1,000						934						868						0.1		%
Highbridge Loan Management, Ltd. 11A-17 E (a) (c)						Diversified Investment Vehicles						L+6.10% (6.33%), 5/6/2030						3,000						2,535						2,665						0.2		%
ICG US CLO, Ltd. 15-2RA D (a) (c) (k)						Diversified Investment Vehicles						L+6.99% (7.22%), 1/17/2033						1,500						1,430						1,350						0.1		%
Jamestown CLO, Ltd. 17-10A D (a) (c)						Diversified Investment Vehicles						L+6.70% (6.92%), 7/17/2029						1,200						978						1,114						0.1		%
LCM, Ltd. Partnership 16A ER2 (a) (c) (k)						Diversified Investment Vehicles						L+6.38% (6.62%), 10/15/2031						2,500						2,323						2,266						0.2		%
Madison Park Funding, Ltd. 14-13A ER (a) (c)						Diversified Investment Vehicles						L+5.75% (5.97%), 4/19/2030						2,500						2,031						2,281						0.2		%
NewStar Arlington Senior Loan Program, LLC 14-1A FR (a) (c) (k) (p)						Diversified Investment Vehicles						L+11.00% (11.21%), 4/25/2031						4,750						4,567						3,632						0.3		%
Newstar Fairfield Fund CLO, Ltd. 2015-1RA F (a) (c) (k) (p) (t)						Diversified Investment Vehicles						L+7.50% (7.72%), 1/20/2027						10,728						9,626						5,459						0.4		%
OCP CLO, Ltd. 14-5A DR (a) (c) (k)						Diversified Investment Vehicles						L+5.70% (5.91%), 4/26/2031						2,200						2,072						2,069						0.1		%
OZLM, Ltd. 15-12A D (a) (c)						Diversified Investment Vehicles						L+5.40% (5.61%), 4/30/2027						2,489						2,148						2,223						0.2		%
Regatta II Funding, LP 13-2A DR2 (a) (c)						Diversified Investment Vehicles						L+6.95% (7.19%), 1/15/2029						2,000						1,790						1,915						0.1		%
Regatta IX Funding, Ltd. 17-1A E (a) (c)						Diversified Investment Vehicles						L+6.00% (6.22%), 4/17/2030						2,000						1,782						1,942						0.1		%
Sound Point CLO, Ltd. 16-1A ER (a) (c)						Diversified Investment Vehicles						L+5.25% (5.47%), 7/20/2028						3,750						3,076						3,469						0.2		%
Sound Point CLO, Ltd. 16-3A E (a) (c)						Diversified Investment Vehicles						L+6.65% (6.86%), 1/23/2029						2,500						2,136						2,381						0.2		%
Sound Point CLO, Ltd. 17-1A E (a) (c) (k)						Diversified Investment Vehicles						L+5.96% (6.17%), 1/23/2029						4,000						3,788						3,550						0.2		%
Sound Point CLO, Ltd. 17-2A E (a) (c)						Diversified Investment Vehicles						L+6.10% (6.31%), 7/25/2030						2,400						1,999						2,040						0.1		%

The accompanying notes are an integral part of these consolidated financial statements.

31

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020
Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Sound Point CLO, Ltd. 18-3A D (a) (c) (k)						Diversified Investment Vehicles						L+5.79% (6.00%), 10/26/2031						$	1,000					$	917					$	892					0.1		%
Sound Point CLO, Ltd. 2015-3A ER (a) (c) (k)						Diversified Investment Vehicles						L+5.25% (5.47%), 1/20/2028						2,000						1,896						1,902						0.1		%
Symphony CLO, Ltd. 2012-9A ER2 (a) (c) (k)						Diversified Investment Vehicles						L+6.95% (7.18%), 7/16/2032						3,000						2,947						2,757						0.2		%
TCW CLO 2019-1 AMR, Ltd. 19-1A F (a) (c) (k)						Diversified Investment Vehicles						L+8.67% (8.89%), 2/15/2029						2,500						2,407						2,277						0.2		%
Tralee CLO, Ltd. 13-1A DR (a) (c)						Diversified Investment Vehicles						L+4.18% (4.40%), 7/20/2029						2,500						2,306						2,356						0.2		%
Whitehorse, Ltd. 2014-1A E (a) (c) (p)						Diversified Investment Vehicles						L+4.55% (4.76%), 5/1/2026						8,000						7,854						5,592						0.4		%
Zais CLO 13, Ltd. 19-13A D1 (a) (c) (k)						Diversified Investment Vehicles						L+4.52% (4.76%), 7/15/2032						3,000						2,866						2,704						0.2		%
Collateralized Securities - Equity Investments (n)
Figueroa CLO, Ltd. 2014-1A Side Letter (a) (c)						Diversified Investment Vehicles						25.44%, 1/15/2027						$	2,986					$	132					$	—					—		%
MidOcean Credit CLO 2013-2A INC (a) (c) (p) (v)						Diversified Investment Vehicles						0.00%, 1/29/2030						37,600						15,829						6,313						0.4		%
NewStar Arlington Senior Loan Program, LLC 14-1A SUB (a) (c) (k) (p) (v)						Diversified Investment Vehicles						18.63%, 4/25/2031						31,603						19,045						15,631						1.1		%
Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB (a) (c) (p) (v)						Diversified Investment Vehicles						0.00%, 1/20/2027						31,575						6,285						—						—		%
OFSI Fund, Ltd. 2014-6A Side Letter (a) (c)						Diversified Investment Vehicles						0.00%, 3/20/2025						1,970						263						—						—		%
Whitehorse, Ltd. 2014-1A Side Letter (a) (c) (p)						Diversified Investment Vehicles						0.00%, 5/1/2026						1,886						134						—						—		%
Whitehorse, Ltd. 2014-1A SUB (a) (c) (p) (v)						Diversified Investment Vehicles						0.00%, 5/1/2026						36,000						6,965						—						—		%
Subtotal Collateralized Securities																								$	139,592					$	106,525					7.6		%
Equity/Other - 16.4% (b) (d)
Aden & Anais Holdings, Inc. (c) (e) (x)						Retail												4,470						$	—					$	—					—		%
Answers Corp. (c) (e) (p)						Media/Entertainment												908,911						$	11,361					$	727					0.1		%
Baker Hill Acquisition, LLC (c) (e) (x)						Financials												22,653						—						—						—		%
Black Mountain Sand, LLC (c) (e) (u)						Energy												55,463						—						3						0.0		%
Capstone Nutrition Development, LLC (c) (e) (p) (u)						Consumer												47,883						4,468						5,928						0.4		%
Captek Softgel International, Inc. (c) (e) (x)						Health/Fitness												8,498						942						—						—		%
CDS U.S. Intermediate Holdings, Inc. (a) (c) (e) (p)						Media/Entertainment												539,708						1,224						1,224						0.1		%
CDS U.S. Intermediate Holdings, Inc. (a) (c) (e) (p)						Media/Entertainment												874,000						437						437						0.0		%
Clover Technologies Group, LLC (c) (e)						Industrials												2,753						275						423						0.0		%
Clover Technologies Group, LLC (c) (e)						Industrials												180,274						1,153						20						0.0		%
CRD Holdings, LLC (a) (c) (o) (u)						Energy						9.00%						52,285,603						13,770						14,557						1.0		%
CRS-SPV, Inc. (c) (e) (k) (o) (x)						Industrials												246						2,219						1,393						0.1		%
Danish CRJ, Ltd. (a) (c) (e) (p) (r)						Transportation												5,002						—						—						—		%
Data Source Holdings, LLC (c) (e) (x)						Business Services												10,617						140						203						0.0		%
Del Real, LLC (c) (e) (u) (x)						Food & Beverage												670,510						382						—						—		%
Dyno Acquiror, Inc. (c) (e) (x)						Consumer												134,102						58						80						0.0		%

The accompanying notes are an integral part of these consolidated financial statements.

32

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020
Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
First Eagle Greenway Fund II, LLC (a) (k) (p)						Diversified Investment Vehicles												5,329						$	5,329					$	1,759					0.1		%
Foresight Energy Operating, LLC (c) (e) (p) (u)						Energy												158,093						2,087						2,520						0.2		%
HemaSource, Inc. (c) (e) (x)						Healthcare												223,503						168						246						0.0		%
Integrated Efficiency Solutions, Inc. (c) (e) (x)						Industrials												53,215						56						—						—		%
Integrated Efficiency Solutions, Inc. (c) (e) (x)						Industrials												2,975						3						—						—		%
Internap Corp (c) (e) (p)						Business Services												1,293,189						543						2,231						0.2		%
Jakks Pacific, Inc. (c) (e) (p)						Consumer												3,389						102						402						0.0		%
Jakks Pacific, Inc. (e) (p) (s)						Consumer												9,884						41						49						0.0		%
Kahala Ireland OpCo Designated Activity Company (a) (c) (e) (o) (z)						Transportation												1						—						42,952						3.1		%
Kahala Ireland OpCo Designated Activity Company (a) (c) (o) (z)						Transportation												3,250,000						—						3,250						0.2		%
Kahala US OpCo, LLC (a) (c) (e) (o) (y)						Transportation						13.00%						4,413,472						—						—						—		%
KidKraft, Inc. (c) (e) (u) (x)						Consumer												2,682,257						—						—						—		%
KMTEX, LLC (c) (e) (o) (u)						Chemicals												4,162,000						2,793						2,289						0.2		%
KMTEX, LLC (c) (e) (o) (u)						Chemicals												442,000						—						—						—		%
Lakeview Health Holdings, Inc. (c) (e) (x)						Healthcare												447						—						—						—		%
LendingHome Corp. (c) (p)						Financials						8.00%						13,986,239						59,823						59,823						4.3		%
MCS Acquisition Corp. (c) (e)						Business Services												31,521						4,103						3,089						0.2		%
MGTF Holdco, LLC (c) (e) (o) (u)						Media/Entertainment												402,000						—						—						—		%
Motor Vehicle Software Corp. (c) (x)						Business Services												223,503						318						279						0.0		%
New Constellis Holdings Inc. (c) (e) (x)						Business Services												2,316						67						67						0.0		%
Nomacorc, LLC (c) (e) (u) (x)						Industrials												356,816						56						111						0.0		%
Park Ave RE Holdings, LLC (c) (e) (k) (o) (w)						Financials												719						2,415						3,300						0.3		%
PCX Aerostructures, LLC (c) (e) (p) (x)						Industrials												27,250						—						—						—		%
PCX Aerostructures, LLC (c) (e) (p) (x)						Industrials												1,356						—						76						0.0		%
PCX Aerostructures, LLC (c) (e) (p) (x)						Industrials												315						—						535						0.0		%
PennantPark Credit Opportunities Fund II, LP (a) (p)						Diversified Investment Vehicles												8,739						8,132						9,274						0.7		%
PT Network, LLC (c) (e) (u)						Healthcare												3						—						—						—		%
RMP Group, Inc. (c) (u) (x)						Financials												223						164						299						0.0		%
Schweiger Dermatology Group, LLC (c) (e) (u) (x)						Healthcare												265,024						—						—						—		%
Siena Capital Finance, LLC (c) (k) (o)						Financials												35,839,400						36,548						35,839						2.6		%
Skillsoft Corp. (c) (e)						Technology												39,794						4,993						7,163						0.5		%
Smile Brands, Inc. (c) (e) (x)						Healthcare												712						815						1,141						0.1		%
Squan Holding Corp. (c) (e)						Telecom												180,835						—						—						—		%
SYNACOR, Inc. (e) (s)						Technology												59,785						—						81						0.0		%
Tap Rock Resources, LLC (c) (g) (p) (u)						Energy												18,356,442						9,973						11,405						0.8		%
Tax Advisors Group, LLC (c) (u) (x)						Financials												86						609						963						0.1		%
Tax Defense Network, LLC (c) (e) (p)						Consumer												147,099						425						—						—		%
Tax Defense Network, LLC (c) (e) (p)						Consumer												633,382						—						—						—		%

The accompanying notes are an integral part of these consolidated financial statements.

33

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020
Portfolio Company (f) (q)						Industry						Investment Coupon Rate / Maturity (l)						Principal / Number of Shares						Amortized Cost						Fair Value						% of Net Assets (b)
Team Waste, LLC (c) (p) (u) (x)						Industrials												128,483						$	2,569					$	2,570					0.2		%
Tennenbaum Waterman Fund, LP (a) (k) (p)						Diversified Investment Vehicles												10,000						10,000						10,087						0.7		%
Travelpro Products, Inc. (a) (c) (e) (x)						Consumer												447,007						506						—						—		%
United Biologics, LLC (c) (e) (u) (x)						Healthcare												4,206						31						15						0.0		%
United Biologics, LLC (c) (e) (u) (x)						Healthcare												3,155						—						—						—		%
United Biologics, LLC (c) (e) (u) (x)						Healthcare												99,236						—						—						—		%
United Biologics, LLC (c) (e) (u) (x)						Healthcare												39,769						132						21						0.0		%
United Biologics, LLC (c) (e) (u) (x)						Healthcare												223						35						9						0.0		%
USASF Holdco, LLC (c) (e) (u)						Financials												10,000						10						—						—		%
USASF Holdco, LLC (c) (e) (u)						Financials												490						490						228						0.0		%
USASF Holdco, LLC (c) (e) (u)						Financials												139						139						278						0.0		%
Vantage Mobility International, LLC (c) (e) (p) (x)						Transportation												1,468,221						—						—						—		%
Vantage Mobility International, LLC (c) (e) (p) (x)						Transportation												391,131						—						—						—		%
Vantage Mobility International, LLC (c) (e) (p) (x)						Transportation												3,280,908						3,140						—						—		%
World Business Lenders, LLC (c) (e)						Financials												922,669						3,750						2,168						0.2		%
WPNT, LLC (c) (e) (o) (u)						Media/Entertainment												402,000						—						—						—		%
WSO Holdings, LP (c) (e) (x)						Food & Beverage												698						279						529						0.0		%
Wythe Will Tzetzo, LLC (c) (e) (u) (x)						Food & Beverage												22,312						302						—						—		%
YummyEarth, Inc. (c) (e) (x)						Food & Beverage												223						—						—						—		%
Subtotal Equity/Other																								$	197,375					$	230,043					16.4		%
TOTAL INVESTMENTS - 187.4% (b)																								$	2,714,001					$	2,623,516					187.4		%

Forward foreign currency contracts:

Counterparty

Contract to Deliver

In Exchange For

Maturity Date

Unrealized Depreciation

Goldman Sachs International

CAD 21,807

$

16,643

2/17/2021

$

477

_____________

(a)All of the Company's investments, except the investments noted by this footnote, are qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the "1940 Act"). Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. Qualifying assets represent 84.8% of the Company's total assets. The significant majority of all investments held are deemed to be illiquid.

(b)Percentages are based on net assets as of December 31, 2020.

(c)The fair value of investments with respect to securities for which market quotations are not readily available is determined in good faith by the Company's Board of Directors as required by the 1940 Act. Such investments are valued using significant unobservable inputs (See Note 3 to the consolidated financial statements).

(d)All amounts are in thousands except share amounts.

(e)Non-income producing at December 31, 2020.

(f)The Company has various unfunded commitments to portfolio companies. Please refer to Note 7 - Commitments and Contingencies for details of these unfunded commitments.

(g)The commitment related to this investment is discretionary.

The accompanying notes are an integral part of these consolidated financial statements.

34

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

(h)The Company's investment or a portion thereof is pledged as collateral under the JPM Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

(i)The Company's investment or a portion thereof is pledged as collateral under the Wells Fargo Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

(j)The Company's investment or a portion thereof is pledged as collateral under the Citi Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

(k)The Company's investment or a portion thereof is pledged as collateral under the MassMutual Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

(l)The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate ("LIBOR" or "L") or Prime ("P") and which reset daily, monthly, quarterly, or semiannually. For each, the Company has provided the spread over LIBOR or Prime and the current interest rate in effect at December 31, 2020. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable. For floating rate securities the all-in rate is disclosed within parentheses.

(m)The principal amount (par amount) is denominated in Canadian Dollars or CAD.

(n)For equity investments in Collateralized Securities, the effective yield is presented in place of the investment coupon rate for each investment. Refer to footnote (v) for a further description of an equity investment in a Collateralized Security.

(o)The provisions of the 1940 Act classify investments based on the level of control that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally presumed to be "non-controlled" when the Company owns 25% or less of the portfolio company's voting securities and/or does not have the power to exercise control over the management or policies of such portfolio company. A company is generally presumed to be "controlled" when the Company owns more than 25% of the portfolio company's voting securities and/or has the power to exercise control over the management or policies of such portfolio company. The Company classifies this investment as "controlled".

(p)The provisions of the 1940 Act classify investments further based on the level of ownership that the Company maintains in a particular portfolio company. As defined in the 1940 Act, a company is generally deemed as "non-affiliated" when the Company owns less than 5% of a portfolio company's voting securities and "affiliated" when the Company owns 5% or more of a portfolio company's voting securities. The Company classifies this investment as "affiliated".

(q)Unless otherwise indicated, all investments in the consolidated schedule of investments are non-affiliated, non-controlled investments.

(r)The Company's investment is held through the Consolidated Holding Company, Kahala Aviation Holdings, LLC, which owns 49% of the operating company, Danish CRJ LTD.

(s)The investment is not a restricted security. All other securities are restricted securities.

(t)The investment is on non-accrual status as of December 31, 2020.

(u)Investments are held in the taxable wholly-owned, consolidated subsidiary, 54th Street Equity Holdings, Inc.

(v)The Collateralized Securities - subordinated notes are treated as equity investments and are entitled to recurring distributions which are generally equal to the remaining cash flow of the payments made by the underlying fund’s securities less contractual payments to debt holders and fund expenses. The estimated yield indicated is based upon a current projection of the amount and timing of these recurring distributions and the estimated amount of repayment of principal upon termination. Such projections are periodically reviewed and adjusted, and the estimated yield may not ultimately be realized.

(w)The Company's investment is held through the consolidated subsidiary, Park Ave RE, Inc., which owns 100% of the equity of the operating company, Park Ave RE Holdings, LLC.

(x)The investment is held through BSP TCAP Acquisition Holdings LP which is an affiliated acquisition entity utilized for the Triangle Transaction. Due to certain restrictions, such as limits on the number of partners allowable within the equity structures of the newly acquired investments, these investments are still held within the acquisition entity as of December 31, 2020.

(y)The Company's investment is held through the consolidated subsidiaries, Kahala Aviation Holdings, LLC and Kahala Aviation US, Inc. which own 100% of the equity of the operating company, Kahala US OpCo LLC.

(z)The Company's investment is held through the consolidated subsidiary, Kahala Aviation Holdings, LLC, which owns 100% of the equity of the operating company, Kahala Ireland OpCo Designated Activity Company.

The accompanying notes are an integral part of these consolidated financial statements.

35

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED SCHEDULES OF INVESTMENTS

(dollars in thousands)

December 31, 2020

The following table shows the portfolio composition by industry grouping based on fair value at December 31, 2020:

			At December 31, 2020
			Investments at Fair Value						Percentage of Total Portfolio
Healthcare			$	504,384					19.2		%
Industrials			333,756						12.7		%
Business Services			304,273						11.6		%
Financials			277,197						10.5		%
Technology			181,909						6.9		%
Diversified Investment Vehicles			127,645						4.9		%
Energy			122,547						4.7		%
Media/Entertainment			113,213						4.3		%
Consumer			103,959						4.0		%
Transportation			96,226						3.7		%
Food & Beverage			91,216						3.5		%
Software/Services			78,520						3.0		%
Telecom			72,173						2.8		%
Education			61,457						2.3		%
Paper & Packaging			57,028						2.2		%
Chemicals			39,384						1.5		%
Gaming/Lodging			29,332						1.1		%
Utilities			19,330						0.7		%
Health/Fitness			6,012						0.2		%
Retail			3,955						0.2		%
Total			$	2,623,516					100.0		%

The accompanying notes are an integral part of these consolidated financial statements.

36

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Note 1 — Organization and Basis of Presentation

    Business Development Corporation of America (the “Company” or "BDCA") is an externally managed, non-diversified closed-end management investment company incorporated in Maryland in May 2010 that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (“the 1940 Act”). In addition, the Company has elected to be treated for tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company’s investment activities are managed by BDCA Adviser, LLC (the “Adviser”), a subsidiary of Benefit Street Partners L.L.C. (“BSP”) and supervised by the Company’s Board of Directors ("Board"), a majority of whom are independent of the Adviser and its affiliates. As a BDC, the Company is required to comply with certain regulatory requirements.

    The Company’s investment objective is to generate both current income and to a lesser extent long-term capital appreciation through debt and equity investments. The Company invests primarily in first and second lien senior secured loans and mezzanine debt issued by middle market companies. The Company defines middle market companies as those with annual revenues up to $1 billion. The Company also purchases interests in loans through secondary market transactions. First and second lien secured loans generally are senior debt instruments that rank ahead of subordinated debt and equity in bankruptcy priority and are generally secured by liens on the operating assets of a borrower, which may include inventory, receivables, plant, property, and equipment. Mezzanine debt is subordinated to senior loans and is generally unsecured. The Company may invest in the equity and junior debt tranches of collateralized loan obligation investment vehicles (“Collateralized Securities” or "CLOs"). CLOs are entities that are formed to manage a portfolio of senior secured loans made to companies whose debt is typically rated below investment grade or, in limited circumstances, unrated. The senior secured loans within these Collateralized Securities meet specified credit and diversity criteria and are subject to concentration limitations in order to create a diverse investment portfolio. In most cases, companies to whom the Company provides customized financing solutions will be privately held at the time the Company invests in them.

    On February 1, 2019, Franklin Resources, Inc. (“FRI”) and Templeton International, Inc. (collectively with FRI, “Franklin Templeton”) acquired BSP, including BSP’s 100% ownership interest in the Adviser (the “FT Transaction”).

    During the three months ended March 31, 2021, the Company invested approximately $540.9 million in portfolio companies to contribute to the support of their business objectives of which some were contractually obligated. See Note 7 - Commitments and Contingencies. As of March 31, 2021, the Company held investments in loans it made to investee companies with aggregate principal amounts of $1,939.4 million. The details of such investments have been disclosed on the consolidated schedule of investments as well as in Note 3 - Fair Value of Financial Instruments. In addition to providing loans to investee companies, from time to time the Company may assist investee companies in securing financing from other sources by introducing such investee companies to sponsors or other lending institutions.

    While the structure of the Company’s investments is likely to vary, the Company may invest in senior secured debt, senior unsecured debt, subordinated secured debt, subordinated unsecured debt, mezzanine debt, convertible debt, convertible preferred equity, preferred equity, common equity, warrants, CLOs, and other instruments, many of which generate current yields. If the Adviser deems appropriate, the Company may invest in more liquid senior secured and second lien debt securities, some of which may be traded. The Company will make such investments to the extent allowed by the 1940 Act and consistent with its continued qualification as a RIC for federal income tax purposes.

    On January 25, 2011, the Company commenced its initial public offering (the “IPO”) on a “reasonable best efforts basis” of up to 150.0 million shares of common stock, $0.001 par value per share, and subsequently amended the offering to issue up to an additional 101.1 million shares of its common stock (the “Offering”). The Company closed the Offering to new investments on April 30, 2015. As of March 31, 2021, the Company had issued 230.0 million shares of common stock for gross proceeds of $2.4 billion including the shares purchased by affiliates and shares issued under the Company's distribution reinvestment plan (“DRIP”). As of March 31, 2021, the Company had repurchased a cumulative 30.7 million shares of common stock through its share repurchase program for payments of $258.5 million.

    The Company intends to co-invest, subject to the conditions included in the exemptive order the Company received from the Securities and Exchange Commission ("SEC"), with certain of its affiliates. The Company believes that such co-investments may afford it additional investment opportunities and an ability to achieve greater diversification.

    As a BDC, the Company is generally required to invest at least 70% of its total assets primarily in securities of private and certain U.S. public companies (other than certain financial institutions), cash, cash equivalents and U.S. Government securities, and other high-quality debt investments that mature in one year or less.

37

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    The Company is permitted to borrow money from time to time within the levels permitted by the 1940 Act (which generally currently allows it to incur leverage for up to one half of its total assets). The Company has used, and expects to continue to use, its credit facilities and other borrowings, along with proceeds from the rotation of its portfolio and proceeds from private securities offerings to finance its investment objectives.

    Although the Small Business Credit Availability Act of 2018 (the “SBCAA”) amended the 1940 Act to permit BDCs to incur increased leverage if certain conditions are met, the Company does not presently intend to avail itself of the increased leverage limits permitted by the SBCAA. If the Company were to avail itself of the increased leverage permitted by the SBCAA, this would effectively allow the Company to double its leverage, which would increase leverage risk and expenses.

Note 2 — Summary of Significant Accounting Policies

Basis of Presentation

    The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements reflect all adjustments, both normal and recurring which, in the opinion of management, are necessary for the fair presentation of the Company’s results of operations and financial condition for the periods presented. The Company is an investment company and follows accounting and reporting guidance in Accounting Standards Codification ("ASC") Topic 946 - Financial Services - Investment Companies ("ASC 946").

    We have also formed and expect to continue to form consolidated subsidiaries (the “Consolidated Holding Companies”). The Company consolidates the following subsidiaries for accounting purposes: BDCA Funding I, LLC (“Funding I”), BDCA-CB Funding, LLC (“CB Funding”), BDCA 57th Street Funding, LLC ("57th Street"), BDCA Asset Financing, LLC ("BDCA Asset Financing"), 54th Street Equity Holdings, Inc. and the Consolidated Holding Companies. All significant intercompany balances and transactions have been eliminated in consolidation. 

    Prior to September 30, 2019, in conjunction with the consolidation of subsidiaries, the Company had recognized non-controlling interests attributable to third party ownership in the following Consolidated Holding Companies: Kahala Aviation Holdings, LLC, Kahala Aviation US, Inc., and Kahala LuxCo S.A.R.L. On September 30, 2019, the Company entered an agreement to purchase the third party ownership of Kahala Aviation Holdings LLC, which in turn owns 100% of the equity of Kahala Aviation US, Inc. and Kahala LuxCo S.A.R.L. As a result of this agreement, the company owns 100% of the equity of Kahala Aviation Holdings LLC, Kahala Aviation US, Inc, and Kahala LuxCo S.A.R.L, and therefore no longer recognizes a non-controlling interest in these Consolidated Holding Companies. The Kahala LuxCo S.A.R.L. entity was liquidated in the second quarter of 2020. See Note 9 - Common Stock for detail of the activity attributable to non-controlling interests.

Interim financial statements are prepared in accordance with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. Accordingly, the consolidated financial statements may not include all of the information and notes required by U.S. GAAP for annual consolidated financial statements. U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets, and any other parameters used in determining these estimates could cause actual results to differ materially. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending on December 31, 2021.

Use of Estimates

    The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Consolidation

    As provided under ASC 946, the Company will generally not consolidate its investment in a company other than a substantially or wholly-owned investment company or controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the accounts of the Company's substantially wholly-owned subsidiaries in its consolidated financial statements. Although the Company owns more than 25% of the voting securities of SLF, the Company does not have sole control over significant actions of SLF for purposes of the 1940 Act or otherwise, and thus does not consolidate its interest.

38

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Valuation of Portfolio Investments

    Portfolio investments are reported on the consolidated statements of assets and liabilities at fair value. On a quarterly basis, the Company performs an analysis of each investment to determine fair value as follows:

    Securities for which market quotations are readily available on an exchange are valued at the reported closing price on the valuation date. The Company may also obtain quotes with respect to certain of the Company's investments from pricing services or brokers or dealers in order to value assets. When doing so, the Company determines whether the quote obtained is readily available according to U.S. GAAP to determine the fair value of the security. If determined to be readily available, the Company uses the quote obtained.

    Investments without a readily determined market value are primarily valued using a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). 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, 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, M&A comparables, and enterprise values, among other factors. When available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process.

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

•Each portfolio company or investment will be valued by the Adviser, with assistance from one or more independent valuation firms engaged by the Company's Board of Directors or as noted below, with respect to investments in an investment fund;

•The independent valuation firm(s) conduct independent appraisals and make an independent assessment of the value of each investment; and

•The Board of Directors determines the fair value of each investment, in good faith, based on the input of the Adviser and independent valuation firm (to the extent applicable).

    For an investment in an investment fund that does not have a readily determinable fair value, the Company measures the fair value of the investment predominately based on the net asset value per share of the investment fund if the net asset value of the investment fund is calculated in a manner consistent with the measurement principles of ASC 946, as of the Company's measurement date. However, there can be no assurance that the Company will be able to sell such investment at a price equal to its net asset value per share and the Company may ultimately sell such investment at a discount to its net asset value per share.

    The Company’s investments in funds that offer periodic liquidity have redemption frequencies which range from monthly to quarterly and redemption notice periods which range from 30 to 90 days. Investments in private equity typically do not offer liquidity and instead, capital is returned through periodic distributions.

    Because there is not a readily available market value for most of the investments in its portfolio, the Company values substantially all of its portfolio investments at fair value as determined in good faith by its Board of Directors, as described herein. 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 fluctuate from period to period. Additionally, the fair value of the Company's investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Company may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If the Company was required to liquidate a portfolio investment in a forced or liquidation sale, the Company could realize significantly less than the value at which the Company has recorded it.

39

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Investment Classification

    The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, “Control” is defined as the power to exercise a controlling influence over the management or policies of a company, unless such power is solely the result of an official position with such company. In addition, any person “who owns beneficially, either directly or through one or more controlled companies, more than 25% of the voting securities of a company and/or has the power to exercise control over the management or policies of such portfolio company shall be presumed to control such company. Typically, any person who does not so own more than 25% of the voting securities of any company and/or does not have the power to exercise control over the management or policies of such portfolio company shall be presumed not to control such company.” Consistent with the 1940 Act, “Affiliated Investments” are defined as those investments in companies in which the Company owns 5% or more of the voting securities. Consistent with the 1940 Act, “Non-affiliated Investments” are defined as investments that are neither Control Investments nor Affiliated Investments.

Cash and Cash Equivalents

Cash and cash equivalents include short-term, liquid investments in a money market deposit account. Cash and cash equivalents are carried at cost which approximates fair value.

Offering Costs

    The Company incurs certain costs in connection with the registration of shares of its common stock. Offering costs principally relate to professional fees, printing costs, direct marketing expenses, due diligence costs, fees paid to regulators, and other expenses, including the salaries and/or expenses of the Adviser and its affiliates engaged in registering and marketing the Company’s common stock. Such allocated expenses of the Adviser and its affiliates may include the development of marketing materials and presentations, training and educational meetings, and generally coordinating the marketing process for the Company.

    Pursuant to the Investment Advisory Agreement, the Company and the Adviser have agreed that the Company will not be liable for organization and offering costs, including transfer agent fees, in excess of 1.5% of the aggregate gross proceeds from the Company’s on-going offering. Should the Company resume continually offering its shares, any offering costs incurred will be capitalized and amortized as an expense on a straight-line basis over a 12-month period. For the periods ended March 31, 2021 and 2020, the Company did not incur any offering costs.

Deferred Financing Costs

    Financing costs incurred in connection with the Company’s unsecured notes and revolving credit facilities are capitalized and amortized into expense using the straight-line method, which approximates the effective yield method over the life of the respective facility. See Note 5 - Borrowings for details on the credit facilities and unsecured notes.

Distributions

    The Company’s Board of Directors authorizes and declares cash distributions payable on a quarterly basis to stockholders of record on each record date. The amount of each such distribution is subject to the discretion of the Board of Directors and applicable legal restrictions related to the payment of distributions. The Company calculates each stockholder’s specific distribution amount for the quarter using record and declaration dates. The distributions are payable by the fifth day following each record date. From time to time, the Company may also pay interim distributions, including capital gains distributions, at the discretion of the Company’s Board of Directors. The Company’s distributions may exceed earnings, especially during the period before it has substantially invested the proceeds from the offering. As a result, a portion of the distributions made by the Company may represent a return of capital for U.S. federal income tax purposes. A return of capital is a return of each stockholder’s investment rather than earnings or gains derived from the Company’s investment activities.

    The Company may fund cash distributions to stockholders from any sources of funds available to the Company, including advances from the Adviser that are subject to reimbursement, as well as offering proceeds, borrowings, net investment income from operations, capital gain proceeds from the sale of assets, and non-capital gain proceeds from the sale of assets. The Company has not established limits on the amount of funds it may use from available sources to make distributions. See Note 13 - Income Tax Information and Distributions to Stockholders for additional information.

40

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Revenue Recognition

Interest Income

    Investment transactions are accounted for on the trade date. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Discount and premium on investments purchased are accreted/amortized over the expected life of the respective investment using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of discount and amortization of premium on investments.

    The Company has a number of investments in Collateralized Securities. Interest income from investments in the “equity” class of these Collateralized Securities (in the Company's case, preferred shares or subordinated notes) is recorded based upon an estimation of an effective yield to expected maturity utilizing assumed cash flows in accordance with ASC 325-40-35, Beneficial Interests in Securitized Financial Assets ("ASC 325-40-35"). The Company monitors the expected cash inflows from its equity investments in Collateralized Securities, including the expected principal repayments. The effective yield is determined and updated quarterly. In accordance with ASC 325-40, investments in CLOs are periodically assessed for other-than-temporary impairment ("OTTI"). When the Company determines that a CLO has OTTI, the amortized cost basis of the CLO is written down as of the date of the determination based on events and information evaluated and that write-down is recognized as a realized loss.

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.

Dividend income from SLF is recorded on the payment date. Distributions from SLF are evaluated at the time of distribution to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions as dividend income unless there are sufficient accumulated tax-basis earnings and profit in SLF prior to distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.

Fee Income

    Fee income, such as structuring fees, origination, closing, amendment fees, commitment, termination, and other upfront fees are generally non-recurring and are recognized as income when earned, either upon receipt or amortized into income. Upon the re-payment of a loan or debt security, any prepayment penalties and unamortized loan origination, structuring, closing, commitment, and other upfront fees are recorded as income.

Payment-in-Kind Interest/Dividends

    The Company holds debt and equity investments in its portfolio that contain payment-in-kind (“PIK”) interest and dividend provisions. The PIK interest and PIK dividend, which represent contractually deferred interest or dividends that add to the investment balance that is generally due at maturity, are recorded on the accrual basis to the extent such amounts are expected to be collected.

Non-accrual Income

    Investments may be placed on non-accrual status when principal or interest payments are past due and/or when there is reasonable doubt that principal or interest will be collected. Accrued interest which may include un-capitalized PIK interest is generally reversed when an investment is placed on non-accrual status. Previously capitalized PIK interest is not reversed when an investment is placed on non-accrual status. Interest payments received on non-accrual investments may be recognized as income or applied to principal depending upon management's judgment of the ultimate outcome. Non-accrual investments are restored to accrual status when past due principal and interest is paid and, in management's judgment, are likely to remain current.

Net Realized Gain or Loss and Net Change in Unrealized Appreciation or Depreciation

    Gain or loss on the sale of investments is calculated using the specific identification method. The Company measures realized gain or loss by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation or depreciation will reflect the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when a gain or loss is realized.

41

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Income Taxes

    The Company has elected to be treated for federal income tax purposes as a RIC under Subchapter M of the Code. Generally, a RIC is not subject to federal income taxes in respect of each taxable year if it distributes dividends for federal income tax purposes to stockholders of an amount generally equal to at least 90% of ‘‘investment company taxable income,’’ as defined in the Code, and determined without regard to any deduction for dividends paid. Distributions declared prior to the filing of the previous year's tax return and paid up to twelve months after the previous tax year can be carried back to the prior tax year in determining the distributions paid in such tax year. The Company intends to make sufficient distributions to maintain its ability to be subject to be taxed as a RIC each year. The Company may be subject to federal excise tax imposed at a rate of 4% on certain undistributed amounts. See Note 13 - Income Tax Information and Distributions to Stockholders for additional information.

Recent Accounting Pronouncements

Adopted

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, hedging relationships, and other transactions to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting if certain criteria are met. The guidance is effective from March 12, 2020 through December 31, 2022. The Company adopted ASU 2020-04 for the period ended June 30, 2020 and there was no impact to the accompanying financial statements and related disclosures.

Note 3 — Fair Value of Financial Instruments

    The Company’s fair value measurements are classified into a fair value hierarchy in accordance with ASC Topic 820, Fair Value Measurement, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

    The Company determines fair value based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. This alternative approach also reflects the contractual terms of the derivatives, if any, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The guidance defines three levels of inputs that may be used to measure fair value:

•Level 1—Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

•Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

•Level 3—Unobservable inputs that reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

    The determination of where an asset or liability falls in the above hierarchy requires significant judgment and factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter.

    For investments for which Level 1 inputs, such as quoted prices, were not available at March 31, 2021 and December 31, 2020, the investments were valued at fair value as determined in good faith using the valuation policy approved by the Board of Directors using Level 2 and Level 3 inputs. The Company evaluates the source of inputs, including any markets in which the Company's investments are trading, in determining fair value. Due to the inherent uncertainty in the valuation process, the estimate of fair value of the Company’s investment portfolio at March 31, 2021 and December 31, 2020 may differ materially from values that would have been used had a ready market for the securities existed.

42

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    In addition to using the above inputs in investment valuations, the Company continues to employ the valuation policy approved by the Board of Directors. Portfolio investments are reported on the consolidated statements of assets and liabilities at fair value. On a quarterly basis the Company performs an analysis of each investment to determine fair value as described below.

    Securities for which market quotations are readily available on an exchange are valued at the reported closing price on the valuation date. The Company may also obtain quotes with respect to certain of the Company's investments from pricing services or brokers or dealers in order to value assets. When doing so, the Company determines whether the quote obtained is readily available according to U.S. GAAP to determine the fair value of the security. If determined readily available, the Company uses the quote obtained.

    Investments without a readily determined market value are primarily valued using a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). 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, 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, M&A comparables, and enterprise values, among other factors. When available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process.

    For an investment in an investment fund that does not have a readily determinable fair value, the Company measures the fair value of the investment predominately based on the net asset value per share of the investment fund if the net asset value of the investment fund is calculated in a manner consistent with the measurement principles of ASC Topic 946, as of the Company's measurement date.

    For investments in Collateralized Securities, the Adviser models both the assets and liabilities of each Collateralized Securities' capital structure. The model uses a waterfall engine to store the collateral data, generate cash flows from the assets, and distribute the cash flows to the liability structure based on the contractual priority of payments. The cash flows are discounted using rates that incorporate risk factors such as default risk, interest rate risk, downgrade risk, and credit spread risk, among others. In addition, the Adviser considers broker quotations and/or comparable trade activity is considered as an input to determining fair value when available.

    As part of the Company's quarterly valuation process, the Adviser may be assisted by one or more independent valuation firms engaged by the Company. The Board of Directors determines the fair value of each investment, in good faith, based on the input of the Adviser and the independent valuation firm(s) (to the extent applicable).

    Determination of fair values involves subjective judgments and estimates. Accordingly, the notes to the consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations on the consolidated financial statements.

    For discussion of the fair value measurement of the Company's borrowings, refer to Note 5 - Borrowings.

    For discussion of the fair value measurement of the Company's foreign currency contracts, refer to Note 6 - Derivatives.

43

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    The following table presents fair value measurements of investments, by major class, as of March 31, 2021, according to the fair value hierarchy:

			Fair Value Measurements
			Level 1						Level 2						Level 3						Measured at Net Asset Value (1)						Total
Senior Secured First Lien Debt			$	—					$	323,657					$	1,159,424					$	—					$	1,483,081
Senior Secured Second Lien Debt			—						68,196						182,315						—						250,511
Subordinated Debt			—						10,902						75,391						—						86,293
Collateralized Securities			—						—						40,355						—						40,355
Equity/Other			201						—						153,075						21,207						174,483
BDCA Senior Loan Fund, LLC			—						—						304,934						—						304,934
Total			$	201					$	402,755					$	1,915,494					$	21,207					$	2,339,657

______________

(1) In accordance with ASC Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient election have not been classified 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 table presents fair value measurements of investments, by major class, as of December 31, 2020, according to the fair value hierarchy:

			Fair Value Measurements
			Level 1						Level 2						Level 3						Measured at Net Asset Value (1)						Total
Senior Secured First Lien Debt			$	—					$	620,666					$	1,307,957					$	—					$	1,928,623
Senior Secured Second Lien Debt			—						52,853						186,899						—						239,752
Subordinated Debt			—						9,963						108,610						—						118,573
Collateralized Securities			—						—						106,525						—						106,525
Equity/Other			130						—						208,793						21,120						230,043
Total			$	130					$	683,482					$	1,918,784					$	21,120					$	2,623,516

______________

(1) In accordance with ASC Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient election have not been classified 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.

44

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended March 31, 2021:

			Senior Secured First Lien Debt						Senior Secured Second Lien Debt						Subordinated Debt						Collateralized Securities						Equity/Other												Total
Balance as of December 31, 2020			$	1,307,957					$	186,899					$	108,610					$	106,525					$	208,793											$	1,918,784
Net change in unrealized appreciation on investments			16,240						2,534						105						3,624						10,095												32,598
Purchases and other adjustments to cost			115,699						2,002						6,205						135						304,936												428,977
Sales and repayments			(222,327)						(17,695)						(40,077)						(70,929)						(65,172)												(416,200)
Net realized gain (loss)			(1,963)						63						548						1,000						(643)												(995)
Transfers in			21,913						20,285						—						—						—												42,198
Transfers out			(78,095)						(11,773)						—						—						—												(89,868)
Balance as of March 31, 2021			$	1,159,424					$	182,315					$	75,391					$	40,355					$	458,009											$	1,915,494
Net change in unrealized appreciation (depreciation) for the period relating to those Level 3 assets that were still held by the Company at the end of the period:			$	12,672					$	2,527					$	(248)					$	4,446					$	10,347											$	29,744

Purchases represent the acquisition of new investments at cost. Sales and repayments represent principal payments received during the period.

    For the three months ended March 31, 2021, transfers from Level 2 to Level 3 were due to current assessments of investment liquidity and a decrease in the number of observable market inputs. For the three months ended March 31, 2021, transfers from Level 3 to Level 2 were due to an increase in the number of observable market inputs.

    The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended December 31, 2020:

			Senior Secured First Lien Debt						Senior Secured Second Lien Debt						Subordinated Debt						Collateralized Securities						Equity/Other						Total
Balance as of December 31, 2019			$	1,121,537					$	271,232					$	97,100					$	108,927					$	187,300					$	1,786,096
Net change in unrealized appreciation (depreciation) on investments			8,734						15,208						4,597						(19,126)						(18,973)						(9,560)
Purchases and other adjustments to cost			597,910						35,666						29,266						58,242						65,574						786,658
Sales and repayments			(414,661)						(80,738)						(21,151)						(39,837)						(33,144)						(589,531)
Net realized gain (loss)			(62,465)						(41,634)						(1,202)						(1,681)						8,036						(98,946)
Transfers in			126,805						7,719						—						—						—						134,524
Transfers out			(69,903)						(20,554)						—						—						—						(90,457)
Balance as of December 31, 2020			$	1,307,957					$	186,899					$	108,610					$	106,525					$	208,793					$	1,918,784
Net change in unrealized appreciation (depreciation) for the period relating to those Level 3 assets that were still held by the Company at the end of the period:			$	(43,203)					$	(3,352)					$	4,985					$	(19,337)					$	(17,988)					$	(78,895)

Purchases represent the acquisition of new investments at cost. Sales and repayments represent principal payments received during the period.

45

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

For the year ended December 31, 2020, transfers from Level 2 to Level 3 were due to current assessments of investment liquidity and a decrease in the number of observable market inputs. For the year ended December 31, 2020, transfers from Level 3 to Level 2 were due to an increase in the number of observable market inputs.

    The composition of the Company’s investments as of March 31, 2021, at amortized cost and fair value, were as follows:

			Investments at Amortized Cost						Investments at Fair Value						Fair Value Percentage of Total Portfolio
Senior Secured First Lien Debt			$	1,539,830					$	1,483,081					63.4		%
Senior Secured Second Lien Debt			259,127						250,511						10.7
Subordinated Debt			82,260						86,293						3.7
Collateralized Securities			69,796						40,355						1.7
Equity/Other			131,564						174,483						7.5
BDCA Senior Loan Fund, LLC			304,934						304,934						13.0
Total			$	2,387,511					$	2,339,657					100.0		%

    The composition of the Company’s investments as of December 31, 2020, at amortized cost and fair value, were as follows:

			Investments at Amortized Cost						Investments at Fair Value						Fair Value Percentage of Total Portfolio
Senior Secured First Lien Debt			$	2,009,503					$	1,928,623					73.5		%
Senior Secured Second Lien Debt			251,957						239,752						9.1
Subordinated Debt			115,574						118,573						4.5
Collateralized Securities			139,592						106,525						4.1
Equity/Other			197,375						230,043						8.8
Total			$	2,714,001					$	2,623,516					100.0		%

46

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

BDCA Senior Loan Fund, LLC

On January 20, 2020, BDCA and Cliffwater Corporate Lending Fund (“CCLF”) formed a joint venture, BDCA Senior Loan Fund, LLC (the “SLF”), that invests primarily in senior secured loans, and to a lesser extent may invest in mezzanine loans, unsecured loans and equity of predominantly private U.S. middle-market companies. BDCA Senior Loan Fund, LLC was formed as a Delaware limited liability company and is not consolidated by either BDCA or CCLF for financial reporting purposes. BDCA provides capital to the SLF in the form of LLC equity interests. As of March 31, 2021, BDCA and CCLF owned 87.5% and 12.5%, respectively, of the LLC equity interests of SLF. BDCA and CCLF each appoint two members to SLF's four-person board of directors. All material decisions with respect to SLF, including those involving its investment portfolio, require unanimous approval of a quorum of the board of directors. Quorum is defined as (i) the presence of two members of the board of directors; provided that at least one individual is present that was elected, designated or appointed by each member; (ii) the presence of three members of the board of directors; provided that the individual that was elected, designated or appointed by the member with only one individual present shall be entitled to cast two votes on each matter; and (iii) the presence of four members of the board of directors; provided that two individuals are present that were elected, designated or appointed by each member.

As part of the initial contribution to SLF, BDCA contributed $751.8 million of assets including $664.2 million of investments and $42.4 million of cash as well as $446.9 million worth of liabilities including the Citi Credit Facility debt of $344.4 million in exchange for $304.9 million of equity in SLF. As of March 31, 2021 BDCA’s investment in SLF consisted of equity contributions of $304.9 million. BDCA’s investment in SLF is classified as “Equity/Other” on the Consolidated Schedule of Investments, and other disclosure unless otherwise indicated.

As of March 31, 2021, BDCA Senior Loan Fund, LLC had total assets of $797.9 million. SLF's portfolio consisted of debt investments in 110 portfolio companies as of March 31, 2021. As of March 31, 2021, the largest investment in a single portfolio company in the SLF's portfolio in aggregate principal amount was $21.5 million; and the five largest investments in portfolio companies in the SLF totaled $97.5 million. BDCA Senior Loan Fund, LLC invests in portfolio companies in the same industries in which BDCA may directly invest.

Below is a listing of BDCA Senior Loan Fund, LLC’s individual investments as of March 31, 2021:

March 31, 2021 (Unaudited)
Portfolio Company (d)						Industry						Investment Coupon Rate (a)						Maturity						Principal Number of Shares						Amortized Cost						Fair Value						% of Members' Capital (c)
Senior Secured First Lien Debt
American Airlines Inc/AAdvantage Loyalty IP, Ltd. (b)						Transportation						L+4.75% (5.50%)						4/20/2028						6,316						$	6,253					$	6,464					1.8		%
Accentcare, Inc. (b)						Healthcare						L+5.00% (5.50%)						6/22/2026						2,758						2,779						2,758						0.8		%
Access Cig, LLC (b)						Business Services						L+3.75% (3.87%)						2/27/2025						4,266						4,250						4,221						1.2		%
Achilles Acquisition, LLC (b)						Financials						L+4.50% (5.25%)						11/16/2027						4,508						4,563						4,504						1.3		%
Acrisure, LLC (b)						Financials						L+3.50% (3.70%)						2/16/2027						18,964						18,873						18,711						5.3		%
Adtalem Global Education, Inc.						Education						5.50%						3/1/2028						5,000						5,000						4,954						1.4		%
Advisor Group, Inc. (b)						Financials						L+4.50% (4.61%)						7/31/2026						7,964						7,964						7,954						2.3		%
AHP Health Partners, Inc. (b)						Healthcare						L+3.75% (4.75%)						6/30/2025						13,558						13,570						13,563						3.9		%
Alchemy US Holdco 1, LLC (b)						Industrials						L+5.50% (5.61%)						10/10/2025						3,465						3,316						3,344						1.0		%
Aldevron, LLC (b)						Healthcare						L+3.25% (4.25%)						10/12/2026						7,669						7,674						7,657						2.2		%

47

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

March 31, 2021 (Unaudited)
Portfolio Company (d)						Industry						Investment Coupon Rate (a)						Maturity						Principal Number of Shares						Amortized Cost						Fair Value						% of Members' Capital (c)
Alvogen Pharma US, Inc. (b)						Healthcare						L+5.25% (6.25%)						12/29/2023						12,818						$	12,669					$	12,751					3.6		%
AP Gaming I, LLC (b)						Gaming/Lodging						L+3.50% (4.50%)						2/15/2024						7,525						7,335						7,356						2.1		%
AqGen Ascensus, Inc. (b)						Business Services						L+4.00% (5.00%)						12/3/2026						18,160						18,255						18,143						5.2		%
ASG Technologies Group, Inc. (b)						Software/Services						L+3.50% (4.50%)						7/31/2024						757						743						751						0.2		%
Asp Navigate Acquisition Corp. (b)						Healthcare						L+4.50% (5.50%)						10/6/2027						3,301						3,309						3,301						0.9		%
Avaya Holdings Corp. (b)						Technology						L+4.00% (4.11%)						12/15/2027						17,770						17,770						17,757						5.1		%
Avis Budget Car Rental, LLC (b)						Transportation						L+2.25% (2.36%)						8/6/2027						4,950						4,857						4,821						1.4		%
BCP Raptor, LLC (b)						Energy						L+4.25% (5.25%)						6/24/2024						13,712						12,717						13,171						3.7		%
BCP Renaissance, LLC (b)						Energy						L+3.50% (4.50%)						10/31/2024						3,375						3,320						3,297						0.9		%
Bomgar Corp. (b)						Technology						L+4.00% (4.11%)						4/18/2025						1,937						1,943						1,935						0.6		%
BMC Software Finance, Inc. (b)						Technology						L+3.75% (3.86%)						10/2/2025						12,859						12,903						12,795						3.6		%
Bracket Intermediate Holding Corp. (b)						Healthcare						L+4.25% (4.49%)						9/5/2025						5,242						5,163						5,242						1.5		%
BPR Nimbus, LLC (b)						Financials						L+2.50% (2.61%)						8/27/2025						2,992						2,930						2,855						0.8		%
CareCentrix, Inc. (b)						Healthcare						L+4.50% (4.70%)						4/3/2025						13,307						13,053						12,122						3.4		%
CCRR Parent, Inc. (b)						Healthcare						L+4.25% (5.00%)						3/6/2028						5,000						4,975						5,006						1.4		%
Chloe Ox Parent, LLC (b)						Healthcare						L+4.50% (5.50%)						12/23/2024						1,921						1,912						1,921						0.5		%
Claros Mortgage Trust, Inc. (b)						Financials						L+5.00% (6.00%)						8/10/2026						6,368						6,368						6,352						1.8		%
Community Care Health Network, LLC (b)						Healthcare						L+4.50% (4.61%)						2/17/2025						8,160						8,142						8,174						2.3		%
Compass Power Generation, LLC (b)						Utilities						L+3.50% (4.50%)						12/20/2024						2,992						2,983						2,970						0.8		%
Connect Finco SARL (b)						Telecom						L+3.50% (4.50%)						12/11/2026						4,596						4,626						4,577						1.3		%
Conservice Midco, LLC (b)						Business Services						L+4.25% (4.45%)						5/13/2027						3,093						3,103						3,089						0.9		%
CONSOL Energy, Inc. (b)						Energy						L+4.50% (4.61%)						9/27/2024						3,995						3,606						3,740						1.1		%
Conterra Ultra Broadband, LLC (b)						Telecom						L+4.50% (4.61%)						4/30/2026						6,762						6,762						6,762						1.9		%
CRGT, Inc. (b)						Software/Services						L+6.50% (7.50%)						2/28/2022						7,827						7,571						7,748						2.2		%
Dunn Paper, Inc. (b)						Paper & Packaging						L+4.75% (5.75%)						8/26/2022						581						546						581						0.2		%
Edgewater Generation, LLC (b)						Utilities						L+3.75% (3.86%)						12/12/2025						2,979						2,959						2,940						0.8		%
Emerald 2, Ltd. (b)						Industrials						L+3.50% (3.61%)						7/10/2026						520						517						516						0.1		%

48

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

March 31, 2021 (Unaudited)
Portfolio Company (d)						Industry						Investment Coupon Rate (a)						Maturity						Principal Number of Shares						Amortized Cost						Fair Value						% of Members' Capital (c)
eResearchTechnology, Inc. (b)						Healthcare						L+4.50% (5.50%)						2/4/2027						1,561						$	1,569					$	1,561					0.4		%
Fastlane Parent Co, Inc. (b)						Transportation						L+4.50% (4.61%)						2/4/2026						1,581						1,581						1,577						0.5		%
First Advantage Holdings, LLC (b)						Business Services						L+3.00% (3.11%)						1/29/2027						1,496						1,493						1,484						0.4		%
Golden Nugget, LLC (b)						Gaming/Lodging						L+2.50% (3.25%)						10/4/2023						2,992						2,956						2,941						0.8		%
Greenway Health, LLC (b)						Healthcare						L+3.75% (4.75%)						2/16/2024						4,770						4,411						4,531						1.3		%
GTT Communications BV (b)						Telecom						L+7.50% (8.50%) 2.50% PIK						12/28/2021						1,072						1,072						1,087						0.3		%
HAH Group Holding Company, LLC (b)						Healthcare						L+5.00% (6.00%)						10/29/2027						5,871						5,783						5,871						1.7		%
HS Purchaser, LLC (b)						Software/Services						L+4.75% (5.75%)						11/19/2026						160						160						160						0.0		%
IDERA, Inc. (b)						Technology						L+3.75% (4.50%)						3/2/2028						7,035						7,048						6,981						2.0		%
Iri Holdings, Inc. (b)						Business Services						L+4.25% (4.36%)						12/1/2025						7,879						7,858						7,879						2.2		%
Jane Street Group, LLC (b)						Financials						L+2.75% (2.86%)						1/26/2028						9,975						9,962						9,860						2.8		%
LogMeIn, Inc. (b)						Software/Services						L+4.75% (4.85%)						8/31/2027						5,985						5,941						5,964						1.7		%
LSCS Holdings, Inc. (b)						Healthcare						L+4.25% (4.51%)						3/17/2025						1,591						1,553						1,574						0.5		%
LSCS Holdings, Inc. (b)						Healthcare						L+4.25% (4.51%)						3/17/2025						6,164						5,988						6,099						1.7		%
McGraw Hill, LLC (b)						Publishing						L+4.75% (5.75%)						11/1/2024						3,000						2,974						2,994						0.9		%
MED Parentco, LP (b)						Healthcare						L+4.25% (4.36%)						8/31/2026						1,423						1,410						1,410						0.4		%
MED Parentco, LP (b)						Healthcare						L+4.25% (4.36%)						8/31/2026						6,573						6,515						6,515						1.9		%
Medallion Midland Acquisition, LP (b)						Energy						L+3.25% (4.25%)						10/30/2024						3,642						3,599						3,604						1.0		%
Medical Solutions Holdings, Inc. (b)						Healthcare						L+4.50% (5.50%)						6/14/2024						2,608						2,565						2,605						0.7		%
MH Sub I, LLC (b)						Business Services						L+3.75% (4.75%)						9/13/2024						6,484						6,484						6,477						1.8		%
Gainwell Acquisition Corp. (b)						Healthcare						L+4.00% (4.75%)						10/1/2027						4,988						4,916						4,963						1.4		%
Millennium Park HoldCo, Inc. (b)						Business Services						L+4.25% (5.25%)						6/5/2024						906						880						887						0.3		%
National Mentor Holdings, Inc. (b)						Healthcare						L+3.75% (4.50%)						3/2/2028						6,997						6,962						6,950						2.0		%
National Mentor Holdings, Inc. (b)						Healthcare						L+3.75% (4.50%)						3/2/2028						233						232						232						0.1		%
Navitas Midstream Midland Basin, LLC (b)						Energy						L+4.50% (5.50%)						12/13/2024						21,507						21,309						21,480						6.1		%
Onex TSG Intermediate Corp. (b)						Healthcare						L+4.75% (5.50%)						2/23/2028						5,000						4,901						4,901						1.4		%
Pelican Products, Inc. (b)						Consumer						L+3.50% (4.50%)						5/1/2025						2,614						2,527						2,580						0.7		%
Perstorp Holding Ab (b)						Chemicals						L+4.75% (4.95%)						2/27/2026						8,845						8,317						8,447						2.4		%

49

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

March 31, 2021 (Unaudited)
Portfolio Company (d)						Industry						Investment Coupon Rate (a)						Maturity						Principal Number of Shares						Amortized Cost						Fair Value						% of Members' Capital (c)
Petrochoice Holdings, Inc. (b)						Industrials						L+5.00% (6.00%)						8/19/2022						2,032						$	1,912					$	1,931					0.6		%
PG&E Corp. (b)						Utilities						L+3.00% (3.50%)						6/23/2025						10,779						10,824						10,756						3.1		%
Accentcare, Inc. (b)						Healthcare						L+4.50% (4.61%)						6/22/2026						13,337						13,337						13,304						3.8		%
Premier Dental Services, Inc. (b)						Healthcare						L+5.25% (6.25%)						6/30/2023						402						397						391						0.1		%
Premise Health Holding Corp. (b)						Healthcare						L+3.50% (3.75%)						7/10/2025						728						720						729						0.2		%
Protective Industrial Products, Inc. (b)						Industrials						L+4.00% (4.75%)						12/29/2027						7,000						6,967						6,984						2.0		%
PSC Industrial Holdings Corp. (b)						Industrials						L+3.75% (4.75%)						10/11/2024						4,530						4,413						4,422						1.3		%
Regionalcare Hospital Partners Holdings, Inc. (b)						Healthcare						L+3.75% (3.86%)						11/14/2025						13,195						13,252						13,153						3.7		%
S&S Holdings, LLC (b)						Consumer						L+5.00% (5.50%)						3/10/2028						7,000						6,791						6,799						1.9		%
Safe Fleet Holdings, LLC (b)						Industrials						L+3.00% (4.00%)						2/3/2025						2,392						2,375						2,343						0.7		%
Safety Products/JHC Acquisition Corp. (b)						Industrials						L+4.50% (4.61%)						6/28/2026						946						894						917						0.3		%
Safety Products/JHC Acquisition Corp. (b)						Industrials						L+4.50% (4.61%)						6/28/2026						17,494						16,563						16,969						4.8		%
Schenectady International Group, Inc. (b)						Chemicals						L+4.75% (4.86%)						10/15/2025						21,454						21,303						21,293						6.1		%
Sierra Acquisition, Inc. (b)						Food & Beverage						L+4.00% (5.00%)						11/11/2024						4,940						4,705						4,841						1.4		%
Spirit Aerosystems, Inc. (b)						Industrials						L+5.25% (6.00%)						1/15/2025						2,575						2,611						2,582						0.7		%
SRS Distribution, Inc. (b)						Business Services						L+3.00% (3.11%)						5/23/2025						2,992						2,979						2,950						0.8		%
Staples, Inc. (b)						Business Services						L+5.00% (5.21%)						4/16/2026						4,987						4,926						4,866						1.4		%
Station Casinos, LLC (b)						Gaming/Lodging						L+2.25% (2.50%)						2/8/2027						2,999						2,982						2,948						0.8		%
Taseko Mines, Ltd.						Industrials						7.00%						2/15/2026						5,000						5,011						5,090						1.4		%
Tenneco, Inc.						Transportation						5.13%						4/15/2029						3,846						3,846						3,793						1.1		%
The Dun & Bradstreet Corp. (b)						Business Services						L+3.25% (3.36%)						2/6/2026						9,900						9,946						9,838						2.8		%
Tivity Health, Inc. (b)						Healthcare						L+5.25% (5.36%)						3/6/2026						1,584						1,576						1,577						0.4		%
TransDigm, Inc. (b)						Industrials						L+2.25% (2.36%)						12/9/2025						2,992						2,973						2,928						0.8		%
TSL Engineered Products, LLC (b)						Industrials						L+4.75% (5.50%)						1/7/2028						8,074						7,993						7,994						2.3		%
Vyaire Medical, Inc. (b)						Healthcare						L+4.75% (5.75%)						4/16/2025						7,892						6,395						6,708						1.9		%
WaterBridge Midstream Operating, LLC (b)						Energy						L+5.75% (6.75%)						6/22/2026						13,734						12,040						12,996						3.7		%
Watlow Electric Manufacturing Co. (b)						Industrials						L+4.00% (4.50%)						3/2/2028						9,545						9,497						9,527						2.7		%
Wirepath, LLC (b)						Consumer						L+4.00% (4.20%)						8/5/2024						7,863						7,406						7,765						2.2		%
Wrench Group, LLC (b)						Consumer						L+4.00% (4.20%)						4/30/2026						3,179						3,118						3,179						0.9		%

50

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

March 31, 2021 (Unaudited)
Portfolio Company (d)						Industry						Investment Coupon Rate (a)						Maturity						Principal Number of Shares						Amortized Cost						Fair Value						% of Members' Capital (c)
Subtotal Senior Secured First Lien Debt																														$	563,997					$	565,990					160.8		%
Senior Secured Second Lien Debt
Edelman Financial Services, LLC (b)						Financials						L+6.75% (6.86%)						7/20/2026						1,120						$	1,109					$	1,118					0.3		%
Subtotal Senior Secured Second Lien Debt																														$	1,109					$	1,118					0.3		%
Collateralized Securities
Collateralized Securities - Debt Investments
Avery Point CLO, Ltd. 15-6A E1						Diversified Investment Vehicles						L+5.50% (5.70%)						8/6/2027						3,500						$	3,085					$	3,258					0.9		%
Catamaran CLO, Ltd. 16-1A D						Diversified Investment Vehicles						L+6.65% (6.87%)						1/18/2029						7,250						6,987						6,880						1.9		%
Cedar Funding, Ltd. 14-4A ER						Diversified Investment Vehicles						L+6.36% (6.58%)						7/23/2030						2,500						2,408						2,388						0.7		%
CIFC Funding, Ltd. 15-5A DR						Diversified Investment Vehicles						L+5.55% (5.77%)						10/25/2027						3,000						2,802						2,861						0.8		%
Dryden Senior Loan Fund 17-49A E						Diversified Investment Vehicles						L+6.30% (6.53%)						7/18/2030						3,000						2,857						2,891						0.8		%
Dryden Senior Loan Fund 2014-36A ER2						Diversified Investment Vehicles						L+6.88% (7.12%)						4/15/2029						2,000						1,907						1,921						0.5		%
Eaton Vance CDO, Ltd. 15-1A FR						Diversified Investment Vehicles						L+7.97% (8.19%)						1/20/2030						2,000						1,721						1,804						0.5		%
Greywolf CLO, Ltd. 20-3RA ER						Diversified Investment Vehicles						L+8.74% (8.96%)						4/15/2033						1,000						869						929						0.3		%
Highbridge Loan Management, Ltd. 11A-17 E						Diversified Investment Vehicles						L+6.10% (6.29%)						5/6/2030						3,000						2,671						2,730						0.8		%
ICG US CLO, Ltd. 15-2RA D						Diversified Investment Vehicles						L+6.99% (7.21%)						1/17/2033						1,500						1,351						1,366						0.4		%
Jamestown CLO, Ltd. 17-10A D						Diversified Investment Vehicles						L+6.70% (6.92%)						7/17/2029						1,200						1,115						1,109						0.3		%
LCM, Ltd. Partnership 16A ER2						Diversified Investment Vehicles						L+6.38% (6.62%)						10/15/2031						2,500						2,270						2,317						0.7		%
Madison Park Funding, Ltd. 14-13A ER						Diversified Investment Vehicles						L+5.75% (5.97%)						4/19/2030						2,500						2,285						2,333						0.7		%
OCP CLO, Ltd. 14-5A DR						Diversified Investment Vehicles						L+5.70% (5.92%)						4/26/2031						2,200						2,071						2,039						0.6		%

51

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

March 31, 2021 (Unaudited)
Portfolio Company (d)						Industry						Investment Coupon Rate (a)						Maturity						Principal Number of Shares						Amortized Cost						Fair Value						% of Members' Capital (c)
OZLM, Ltd. 15-12A D						Diversified Investment Vehicles						L+5.40% (5.61%)						4/30/2027						2,489						$	2,230					$	2,288					0.6		%
Regatta II Funding, LP 13-2A DR2						Diversified Investment Vehicles						L+6.95% (7.19%)						1/15/2029						2,000						1,917						1,907						0.5		%
Sound Point CLO, Ltd. 2015-3A ER						Diversified Investment Vehicles						L+5.25% (5.47%)						1/20/2028						2,000						1,905						1,934						0.5		%
Sound Point CLO, Ltd. 18-3A D						Diversified Investment Vehicles						L+5.79% (6.01%)						10/26/2031						1,000						894						885						0.3		%
Sound Point CLO, Ltd. 16-1A ER						Diversified Investment Vehicles						L+5.25% (5.47%)						7/20/2028						3,750						3,476						3,443						1.0		%
Sound Point CLO, Ltd. 16-3A E						Diversified Investment Vehicles						L+6.65% (6.87%)						1/23/2029						2,500						2,383						2,323						0.7		%
Sound Point CLO, Ltd. 17-1A E						Diversified Investment Vehicles						L+5.96% (6.18%)						1/23/2029						4,000						3,559						3,640						1.0		%
Sound Point CLO, Ltd. 17-2A E						Diversified Investment Vehicles						L+6.10% (6.32%)						7/25/2030						2,400						2,045						2,062						0.6		%
Symphony CLO, Ltd. 2012-9A ER2						Diversified Investment Vehicles						L+6.95% (7.17%)						7/16/2032						3,000						2,760						2,888						0.8		%
TCW CLO 2019-1 AMR, Ltd. 19-1A F						Diversified Investment Vehicles						L+8.67% (8.87%)						2/15/2029						2,500						2,282						2,327						0.7		%
Tralee CLO, Ltd. 13-1A DR						Diversified Investment Vehicles						L+4.18% (4.40%)						7/20/2029						2,500						2,359						2,379						0.7		%
Zais CLO 13, Ltd. 19-13A D1						Diversified Investment Vehicles						L+4.52% (4.76%)						7/15/2032						3,000						2,708						2,745						0.8		%
Subtotal Collateralized Securities																														$	62,917					$	63,647					18.1		%
TOTAL INVESTMENTS																														$	628,023					$	630,755					179.2		%
																																				Unrealized Appreciation						% of Members' Capital (c)
Unrealized gain on derivatives
Total Return Swap
JPMorgan Chase Bank, N.A. call date 2/15/2022																																				$	143					0.0		%
TOTAL UNREALIZED GAIN ON DERIVATIVES																																				$	143					0.0		%

______________

(a)The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate ("LIBOR" or "L") or Prime ("P") and which reset daily, monthly, quarterly, or semiannually. For each, the Company

52

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

has provided the spread over LIBOR or Prime and the current interest rate in effect at March 31, 2021. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable. For floating rate securities the all-in rate is disclosed within parentheses.

(b)The SLF's investment or a portion thereof is pledged as collateral under the Citi Credit Facility. Individual investments can be divided into parts which are pledged to separate credit facilities.

(c)Percentages are based on members' capital as of March 31, 2021.

(d)The SLF has various unfunded commitments to portfolio companies.

SLF had $3.2 million of unfunded commitments on delayed draw term loans as of March 31, 2021.

Below is certain summarized financial information for the BDCA Senior Loan Fund, LLC as of March 31, 2021 and for the period January 20, 2021 through March 31, 2021:

Selected Statements of Assets and Liabilities Information			March 31,
			2021
			(Unaudited)
ASSETS
Investments, at fair value			$	630,755
Cash and other assets			167,107
Total assets			$	797,862
LIABILITIES
Revolving credit facilities			$	376,412
Other liabilities			69,477
Total liabilities			445,889
MEMBERS' CAPITAL
Total members' capital			$	351,973
Total liabilities and members' capital			$	797,862

53

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Selected Statements of Operations Information			For the period January 20, 2021 through March 31,
			2021
			(Unaudited)
Investment income:
Total investment income			$	8,452
Operating expenses:
Interest and credit facility financing expenses			1,594
Other expenses			283
Total expenses			1,877
Net investment income			6,575
Realized and unrealized gain:
Net realized and unrealized gain			3,478
Net increase in net assets resulting from operations			$	10,053

54

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Significant Unobservable Inputs

    The following table summarizes the significant unobservable inputs used to value the majority of the Level 3 investments as of March 31, 2021. The table is not intended to be all-inclusive, but instead identifies the significant unobservable inputs relevant to the determination of fair values.

Range

Asset Category

Fair Value

Primary Valuation Technique

Unobservable Inputs

Minimum

Maximum

Weighted Average (a)

Senior Secured First Lien Debt

$

912,609

Discounted Cash Flow

Market Yield

5.00%

41.00%

8.70%

Senior Secured First Lien Debt

107,464

Yield Analysis

Market Yield

2.00%

14.13%

7.21%

Senior Secured First Lien Debt

67,653

Waterfall Analysis

EBITDA Multiple

0.42x

15.50x

7.83x

Senior Secured First Lien Debt (c)

46,709

N/A

N/A

N/A

N/A

N/A

Senior Secured First Lien Debt (b)

13,549

Waterfall Analysis

Discount Rate

15.00%

15.00%

15.00%

Senior Secured First Lien Debt

11,440

Waterfall Analysis

Revenue Multiple

0.20x

0.77x

0.35x

Senior Secured Second Lien Debt

100,804

Discounted Cash Flow

Market Yield

7.25%

23.75%

10.77%

Senior Secured Second Lien Debt

74,087

Yield Analysis

Market Yield

9.38%

11.53%

10.34%

Senior Secured Second Lien Debt

4,871

Waterfall Analysis

Revenue Multiple

0.52x

1.30x

1.15x

Senior Secured Second Lien Debt (b)

2,553

Waterfall Analysis

EBITDA Multiple

5.20x

5.20x

5.20x

Subordinated Debt (b)

32,237

Discounted Cash Flow

Discount Rate

9.55%

9.55%

9.55%

Subordinated Debt (b)

28,500

Waterfall Analysis

Tangible Net Asset Value Multiple

1.65x

1.65x

1.65x

Subordinated Debt (c)

11,467

N/A

N/A

N/A

N/A

N/A

Subordinated Debt (b)

3,187

Yield Analysis

Market Yield

23.92%

23.92%

23.92%

Collateralized Securities

40,355

Discounted Cash Flow

Discount Rate

13.00%

32.00%

21.25%

Equity/Other (b)

39,423

Waterfall Analysis

Tangible Net Asset Value Multiple

1.65x

1.65x

1.65x

Equity/Other

39,202

Waterfall Analysis

Discount Rate

15.00%

15.00%

15.00%

Equity/Other

29,020

Waterfall Analysis

EBITDA Multiple

3.25x

11.74x

6.77x

Equity/Other

23,813

Discounted Cash Flow

Discount Rate

3.00%

13.78%

8.64%

Equity/Other

15,366

Waterfall Analysis

Revenue Multiple

0.11x

2.86x

2.50x

Equity/Other (c)

2,911

N/A

N/A

N/A

N/A

N/A

Equity/Other

2,674

Waterfall Analysis

TBV Multiple

1.42x

3.70x

3.27x

Equity/Other (b)

666

Discounted Cash Flow

Market Yield

12.50%

12.50%

12.50%

BDCA Senior Loan Fund, LLC (b)

304,934

Discounted Cash Flow

Discount Rate

8.97%

8.97%

8.97%

Total

$

1,915,494

______________

(a)Weighted averages are calculated based on fair value of investments.

(b)This asset category contains one investment.

(c)Investment(s) were valued based on recent or pending transactions expected to close after the valuation date.

    There were no significant changes in valuation approach or technique as of March 31, 2021.

    Level 3 Inputs to the valuation methodology are unobservable and significant to overall fair value measurement. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category include investments in privately held entities where the fair value is based on unobservable inputs.

55

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    The following table summarizes the significant unobservable inputs used to value the majority of the Level 3 investments as of December 31, 2020. The table is not intended to be all-inclusive, but instead identifies the significant unobservable inputs relevant to the determination of fair values.

Range

Asset Category

Fair Value

Primary Valuation Technique

Unobservable Inputs

Minimum

Maximum

Weighted Average (a)

Senior Secured First Lien Debt

$

851,279

Discounted Cash Flow

Market Yield

4.38%

38.50%

8.88%

Senior Secured First Lien Debt (c)

179,109

N/A

N/A

N/A

N/A

N/A

Senior Secured First Lien Debt

161,126

Yield Analysis

Market Yield

2.87%

14.13%

7.17%

Senior Secured First Lien Debt

78,988

Waterfall Analysis

EBITDA Multiple

4.50x

8.39x

6.62x

Senior Secured First Lien Debt (b)

18,549

Waterfall Analysis

Discount Rate

15.00%

15.00%

15.00%

Senior Secured First Lien Debt (b)

10,485

Discounted Cash Flow

Discount Rate

9.47%

9.47%

9.47%

Senior Secured First Lien Debt

8,421

Waterfall Analysis

Revenue Multiple

0.20x

0.75x

0.30x

Senior Secured Second Lien Debt

141,633

Discounted Cash Flow

Market Yield

7.30%

29.00%

11.21%

Senior Secured Second Lien Debt

28,479

Yield Analysis

Market Yield

12.82%

23.96%

15.20%

Senior Secured Second Lien Debt (c)

15,843

N/A

N/A

N/A

N/A

N/A

Senior Secured Second Lien Debt (b)

944

Waterfall Analysis

Revenue Multiple

0.55x

0.55x

0.55x

Subordinated Debt (b)

37,237

Discounted Cash Flow

Discount Rate

10.25%

10.25%

10.25%

Subordinated Debt (b)

25,500

Waterfall Analysis

Tangible Net Asset Value Multiple

1.50x

1.50x

1.50x

Subordinated Debt (b)

24,696

Discounted Cash Flow

Market Yield

8.79%

8.79%

8.79%

Subordinated Debt

18,942

Waterfall Analysis

EBITDA Multiple

4.50x

10.91x

6.41x

Subordinated Debt (b)

2,235

Yield Analysis

Market Yield

11.63%

11.63%

11.63%

Collateralized Securities

106,525

Discounted Cash Flow

Discount Rate

5.50%

35.00%

14.24%

Equity/Other (b) (c)

59,823

N/A

N/A

N/A

N/A

N/A

Equity/Other

46,202

Waterfall Analysis

Discount Rate

15.00%

15.00%

15.00%

Equity/Other (b)

35,839

Waterfall Analysis

Tangible Net Asset Value Multiple

1.50x

1.50x

1.50x

Equity/Other

22,425

Waterfall Analysis

EBITDA Multiple

1.53x

11.74x

6.24x

Equity/Other

14,959

Discounted Cash Flow

Market Yield

0.06%

13.00%

0.61%

Equity/Other

14,705

Discounted Cash Flow

Discount Rate

10.25%

16.50%

15.10%

Equity/Other

12,166

Waterfall Analysis

Revenue Multiple

0.11x

2.86x

2.43x

Equity/Other

2,674

Waterfall Analysis

TBV Multiple

1.37x

3.20x

2.85x

Total

$

1,918,784

______________

(a)Weighted averages are calculated based on fair value of investments.

(b)This asset category contains one investment.

(c)This instrument(s) was held at cost.

    There were no significant changes in valuation approach or technique as of December 31, 2020.

    Increases or decreases in any of the above unobservable inputs in isolation would result in a lower or higher fair value measurement for such assets.

56

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    The income and market approaches were used in the determination of fair value of certain Level 3 assets as of March 31, 2021 and December 31, 2020. The significant unobservable inputs used in the income approach are the discount rate or market yield used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. An increase in the discount rate or market yield would result in a decrease in the fair value. Included in the consideration and selection of discount rates is risk of default, rating of the investment, call provisions and comparable company investments. The significant unobservable inputs used in the market approach are based on market comparable transactions and market multiples of publicly traded comparable companies. Increases or decreases in market comparable transactions or market multiples would result in an increase or decrease, respectively, in the fair value.

    Valuations of loans, corporate debt, and other debt obligations are generally based on discounted cash flow techniques, for which the significant inputs are the amount and timing of expected future cash flows, market yields and recovery assumptions. The significant inputs are generally determined based on relative value analysis, which incorporate comparisons to other debt instruments for which observable prices or broker quotes are available. Other valuation methodologies are used as appropriate including market comparables, transactions in similar instruments and recovery/liquidation analysis. The Company also considers the use of EBITDA multiples, revenue multiples, tangible net asset value multiples, TBV multiples, and other relevant multiples on its debt and equity investments to determine any credit gains or losses in certain instances. Increases or decreases in either of these inputs in isolation may result in a significantly lower or higher fair value measurement of the respective subject instrument.

As of March 31, 2021, the Company had six portfolio companies on non-accrual with a total amortized cost of $84.4 million and fair value of $42.0 million, which represented 3.5% and 1.8% of the investment portfolio's total amortized cost and fair value, respectively. As of December 31, 2020, the Company had eleven portfolio companies on non-accrual with a total amortized cost of $104.1 million and fair value of $55.4 million, which represented 3.8%, and 2.1% of the investment portfolio's total amortized cost and fair value, respectively. Refer to Note 2 - Summary of Significant Accounting Policies - for additional details regarding the Company’s non-accrual policy.

Note 4 — Related Party Transactions and Arrangements

Investment Advisory Agreement

    Pursuant to the Investment Advisory Agreement and for the investment advisory and management services provided thereunder, the Company pays the Adviser a base management fee and an incentive fee.

    Prior to February 1, 2019, the Adviser provided investment advisory and management services under the investment advisory and management services agreement, effective November 1, 2016 (the “Prior Investment Advisory Agreement”), and most recently re-approved by the Board in August 2018. The terms of the Prior Investment Advisory Agreement were materially identical to the Investment Advisory Agreement. The Prior Investment Advisory Agreement automatically terminated on February 1, 2019 upon the indirect change of control of the Adviser on the consummation of Franklin Templeton's acquisition of BSP. The Investment Advisory Agreement was approved by the Board, including a majority of independent directors, on October 22, 2018, and by stockholders at a special meeting held on January 11, 2019 and took effect February 1, 2019. The Board renewed the Investment Advisory Agreement on January 21, 2021.

Base Management Fee

    The base management fee is calculated at an annual rate of 1.5% of the Company's average gross assets (including assets purchased with borrowed funds). The Company's gross assets increase or decrease with any appreciation or depreciation associated with a derivative contract. Average gross assets is calculated based on the average value of the Company’s gross assets at the end of the two most recently completed calendar quarters. The base management fee is payable quarterly in arrears and is appropriately pro-rated for any partial month or quarter. All or any part of the base management fee not taken as to any quarter may be deferred without interest and may be taken in such other quarter as the Adviser will determine within three years.

    As of March 31, 2021 and December 31, 2020, $9.6 million and $9.6 million was payable to the Adviser for base management fees, respectively.

    For the three months ended March 31, 2021 and 2020, the Company incurred $9.6 million and $9.9 million, respectively, in base management fees under the Investment Advisory Agreement.

57

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Incentive Fees

    The incentive fee consists of two parts. The first part is referred to as the incentive fee on income and it is calculated and payable quarterly in arrears based on the Company’s “Pre-Incentive Fee Net Investment Income” for the immediately preceding quarter. “Pre-Incentive Fee Net Investment Income” means interest income, dividend income, and any other income (including any other fees, other than fees for providing managerial assistance, such as commitment, origination, structuring, diligence, and consulting fees or other fees that the Company receives 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 administration agreement and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). 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 that the Company has not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains or losses, or unrealized capital appreciation or depreciation. The payment of the incentive fee on income is subject to payment of a preferred return to investors each quarter, expressed as a quarterly rate of return on the value of the Company's net assets at the end of the most recently completed calendar quarter, of 1.75% (7.00% annualized), subject to a “catch up” feature (as described below). The calculation of the incentive fee on income for each quarter is as follows:

•No incentive fee on income will be payable to the Adviser in any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income does not exceed the preferred return rate of 1.75% or 7.00% annualized (the “Preferred Return”) on net assets;

•100% of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds the preferred return but is less than or equal to 2.1875% in any calendar quarter (8.75% annualized) will be payable to the Adviser. This portion of the Company’s incentive fee on income is referred to as the “catch up” and is intended to provide the Adviser with an incentive fee of 20% on all of the Company’s Pre-Incentive Fee Net Investment Income when the Company’s Pre-Incentive Fee Net Investment Income reaches 2.1875% (8.75% annualized) in any calendar quarter; and

•For any quarter in which the Company's Pre-Incentive Fee Net Investment Income exceeds 2.1875% (8.75% annualized), the incentive fee on income will be equal to 20% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, as the Preferred Return and catch-up will have been achieved.

    As of March 31, 2021 and December 31, 2020, $7.0 million and $6.2 million was payable to the Adviser for the incentive fee on income, respectively.

    For the three months ended March 31, 2021 and 2020, the Company incurred $6.7 million and $0.0 million, respectively, in incentive fees on income under the Investment Advisory Agreement.

    The second part of the incentive fee, referred to as the “incentive fee on capital gains during operations,” is an incentive fee on capital gains earned on liquidated investments from the portfolio during operations prior to the Company’s liquidation and is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, if earlier). This fee equals 20% of the Company’s incentive fee capital gains, which equals the Company’s realized capital gains on a cumulative basis from inception, calculated as of the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. For the three months ended March 31, 2021 and 2020, the Company did not incur incentive fees on capital gains during operations under the Investment Advisory Agreement.

Administration Agreement

    In connection with the Administration Agreement, BSP provides the Company with office facilities and administrative services. As of March 31, 2021 and December 31, 2020, $0.5 million and $0.5 million was payable to BSP under the Administration Agreement, respectively.

    For the three months ended March 31, 2021 and 2020, the Company incurred $0.5 million and $0.7 million, respectively, in administrative service fees under the Administration Agreement.

58

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Co-Investment Relief

    The 1940 Act generally prohibits BDCs from entering into negotiated co-investments with affiliates absent an order from the SEC. The SEC staff has granted the Company exemptive relief that allows it to enter into certain negotiated co-investment transactions alongside with other funds managed by the Adviser or its affiliates (“Affiliated Funds”) in a manner consistent with its 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 its affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of its eligible 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 the Company's stockholders and do not involve overreaching in respect of the Company or the Company's 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 the Company’s investment objective and strategies.    

Private Placement in connection with FT Transaction

    On February 1, 2019, Franklin Templeton acquired BSP, including BSP’s 100% ownership interest in our Adviser. In connection with the FT Transaction, on November 1, 2018, the Company issued approximately 6.1 million and 4.9 million shares of the Company's common stock to FRI and BSP, respectively, at a purchase price of $8.20 per share in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).

Other Affiliated Parties

    The Adviser is the investment adviser of BDCA. The Adviser is an affiliate of BSP, an SEC registered investment adviser. The Adviser and BSP are under common control. Prior to the consummation of the FT Transaction on February 1, 2019, the Adviser was affiliated and under common control with Providence Equity Capital Markets L.L.C. (“PECM”), an SEC registered investment adviser on the BSP platform. The Adviser was affiliated and under common control with Providence Equity Partners L.L.C. (“PEP”), an SEC registered investment adviser. PEP is a global private equity investment adviser and maintained an information barrier between itself and the Adviser, BSP and PECM. The Adviser was affiliated and under common control with Merganser Capital Management, LLC (“Merganser”), an SEC registered investment adviser. BSP, the Adviser, PECM, Merganser and PEP’s respective Form ADV’s are publicly available for review on the SEC Investment Adviser Public Disclosure website.

Note 5 — Borrowings

Wells Fargo Credit Facility

    On July 24, 2012, the Company, through a wholly-owned, consolidated special purpose financing subsidiary, Funding I, entered into a revolving credit facility with Wells Fargo and U.S. Bank as collateral agent, account bank, and collateral custodian (as amended from time to time, the “Existing Wells Fargo Credit Facility”). The Existing Wells Fargo Credit Facility was amended on July 7, 2020 (the "July 7th Amendment") to decrease the total aggregate principal amount of borrowings from $600.0 million on a committed basis to $575.0 million. Prior to the July 7th Amendment, the facility was priced at one-month LIBOR, with no LIBOR floor, plus a spread ranging between 1.65% and 2.50% per annum. After the July 7th Amendment, the Existing Wells Fargo Credit Facility was priced at one-month LIBOR, with no LIBOR floor, plus a spread of 2.75% per annum. Interest was payable quarterly in arrears. Funding I was subject to a non-usage fee to the extent the aggregate principal amount available under the Existing Wells Fargo Credit Facility has not been borrowed. The non-usage fee per annum was 0.50% for the first 25% of the unused balance and 2.0% for the portion of the unused balance that exceeded 25%, except for the period from March 15, 2019 through June 15, 2019, where the non-usage fee per annum was 0.50% on any principal amount unused.

    On August 28, 2020, the Company refinanced the Existing Wells Fargo Credit Facility with (i) a $300.0 million revolving credit facility with the Company, as collateral manager, Funding I, as borrower, the lenders party thereto, Wells Fargo, as administrative agent, and U.S. Bank, as collateral agent and collateral custodian (the “New Wells Fargo Credit Facility,” together with Existing Wells Fargo Credit Facility, “Wells Fargo Credit Facility”) and (ii) the JPM Credit Facility (as defined below).

59

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    The New Wells Fargo Credit Facility provides for borrowings through August 28, 2023, and any amounts borrowed under the New Wells Fargo Credit Facility will mature on August 28, 2025. The New Wells Fargo Credit Facility is priced at three-month LIBOR, with a LIBOR floor of zero, plus a spread calculated based upon the composition of loans in the collateral pool, which will not exceed 2.75% per annum. Interest is payable quarterly in arrears. Funding I will be subject to a non-usage fee to the extent the commitments available under the New Wells Fargo Credit Facility have not been borrowed. The non-usage fee per annum is 0.50% for the first 25% of the unused balance and 2.0% for the portion of the unused balance that exceeds 25%. Funding I paid a structuring fee and incurred other customary costs and expenses in connection with the New Wells Fargo Credit Facility. Pursuant to an amendment entered into on April 6, 2021, the commitment fee for any unused portion of the New Wells Fargo Credit Facility was temporarily reduced until September 30, 2021. Additionally, the maximum spread was reduced from 2.75% to 2.50% as a result of this amendment. The other terms of the New Wells Fargo Credit Facility were unchanged.

    Funding I’s obligations under the New Wells Fargo Credit Facility are secured by a first priority security interest in substantially all of the assets of Funding I, including its portfolio of investments and the Company’s equity interest in Funding I. The obligations of Funding I under the New Wells Fargo Credit Facility are non-recourse to the Company.

    In connection with the New Wells Fargo Credit Facility, the Company and Funding I have made certain representations and warranties and are required to comply with various covenants and other customary requirements. The New Wells Fargo Credit Facility contains customary default provisions pursuant to which the administrative agent and the lenders under the New Wells Fargo Credit Facility may terminate the Company in its capacity as collateral manager/portfolio manager under the New Wells Fargo Credit Facility. Upon the occurrence of an event of default under the New Wells Fargo Credit Facility, the administrative agent or the lenders may declare the outstanding advances and all other obligations under the New Wells Fargo Credit Facility immediately due and payable.

JPM Credit Facility

    On August 28, 2020, the Company, through a wholly-owned, consolidated special purpose financing subsidiary, 57th Street, entered into a $300.0 million revolving credit facility with JPMorgan Chase Bank, National Association, as administrative agent (“JPM”), and U.S. Bank, as collateral agent, collateral administrator and securities intermediary (the “JPM Credit Facility”).

    The JPM Credit Facility provides for borrowings through August 28, 2023, and any amounts borrowed under the JPM Credit Facility will mature on August 28, 2023 unless the administrative agent exercises its option to extend the maturity date to August 28, 2024. The JPM Credit Facility is priced at three-month LIBOR, with a LIBOR floor of zero, plus a spread of 2.75% per annum. Interest is payable quarterly in arrears. 57th Street will be subject to a non-usage fee to the extent the commitments available under the JPM Credit Facility have not been borrowed. The non-usage fee per annum is 0.50% for the first 20% of the unused balance and 2.75% for the portion of the unused balance that exceeds 20%. 57th Street paid a structuring fee and incurred other customary costs and expenses in connection with the JPM Credit Facility. On January 21, 2021, the Company entered into an amendment (the “JPM Amendment”) to the JPM Credit Facility. The JPM Amendment, among other things, increases the amount that the Company is permitted to borrow under the JPM Credit Agreement from $300.0 million to $400.0 million. On April 12, 2021, the Company, through 57th Street, amended and restated the JPM Credit Facility. The amendment and restatement temporarily reduces the previous minimum funding amount until October 13, 2021. The other material terms of the JPM Credit Facility were unchanged.

    57th Street’s obligations under the JPM Credit Facility are secured by a first priority security interest in substantially all of the assets of 57th Street, including its portfolio of investments and the Company’s equity interest in 57th Street. The obligations of 57th Street under the JPM Credit Facility are non-recourse to the Company.

    In connection with the JPM Credit Facility, the Company and 57th Street have made certain representations and warranties and are required to comply with various covenants and other customary requirements. The JPM Credit Facility contains customary default provisions pursuant to which the administrative agent and the lenders under the JPM Credit Facility may terminate the Company in its capacity as collateral manager/portfolio manager under the JPM Credit Facility. Upon the occurrence of an event of default under the JPM Credit Facility, the administrative agent or the lenders may declare the outstanding advances and all other obligations under the JPM Credit Facility immediately due and payable.

60

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Citi Credit Facility

    On June 27, 2014, the Company, through a wholly-owned, special purpose financing subsidiary, CB Funding, entered into a credit facility (as amended from time to time, the “Citi Credit Facility”) with Citibank, N.A. ("Citi") as administrative agent and U.S. Bank as collateral agent, account bank, and collateral custodian. From January 1, 2020 to January 20, 2021 the Citi Credit Facility provided for borrowings in an aggregate principal amount of up to $400.0 million on a committed basis, with a reinvestment period ending on May 31, 2021 and maturity date of May 31, 2022. On January 20, 2021, BDCA Senior Loan Fund, LLC (the "SLF"), a newly formed joint venture co-managed by the Company entered into an amendment to the Citi Credit Facility (the “Citi Credit Agreement”). The amendment, among other things, (i) replaces the Company with SLF as the collateral manager under the Citi Credit Agreement, (ii) extends the end of the reinvestment period from May 31, 2021 to May 31, 2023 and (iii) extends the final maturity date from May 31, 2022 to May 31, 2024. As a result of this amendment to the Citi Credit Facility, the Company incurred a realized loss on extinguishment of debt of $(1.3) million. In connection with the Citi Credit Facility, CB Funding has made certain representations and warranties, is required to comply with various covenants, reporting requirements, and other customary requirements for similar facilities and is subject to certain customary events of default. Upon the occurrence and during the continuation of an event of default, Citi may declare the outstanding advances and all other obligations under the Citi Credit Facility immediately due and payable. During the continuation of an event of default, CB Funding must pay interest at a default rate.

    The Citi Credit Facility contains customary default provisions for facilities of this type pursuant to which Citi may terminate the rights, obligations, power, and authority of the Company, in its capacity as servicer of the portfolio assets under the Citi Credit Facility, including, but not limited to, non-performance of Citi Credit Facility obligations, insolvency, defaults of certain financial covenants, and other events with respect to the Company that may be adverse to Citi and the secured parties under the Citi Credit Facility.

    The Citi Credit Facility is priced at three-month LIBOR plus a spread of 1.60% per annum through and including the last day of the investment period and 2.00% per annum thereafter. Interest is payable quarterly in arrears. CB Funding is subject to a non-usage fee to the extent the aggregate principal amount available under the Citi Credit Facility has not been borrowed. The non-usage fee per annum is 0.50%. Any amounts borrowed under the Citi Credit Facility along with any accrued and unpaid interest thereunder will mature, and will be due and payable, in three years.

MassMutual Credit Facility

    On July 7, 2020, the Company and a wholly-owned, special purpose financing subsidiary, BDCA Asset Financing, entered into a loan and servicing agreement (the “MassMutual Credit Facility”) with Massachusetts Mutual Life Insurance Company (“MassMutual”) as facility servicer and a lender and U.S. Bank National Association as collateral custodian, collateral administrator and administrative agent. The MassMutual Credit Facility provides for borrowings of up to $100.0 million on a committed basis, and, subject to satisfaction of certain conditions, contains an accordion feature whereby the Mass Mutual Credit Facility can be expanded to $150.0 million.

    BDCA Asset Financing’s obligations under the MassMutual Credit Facility are secured by a first priority security interest in substantially all of the assets of BDCA Asset Financing, including its portfolio of investments and the Company’s equity interest in BDCA Asset Financing. The obligations of BDCA Asset Financing under the MassMutual Credit Facility are non-recourse to the Company.

    The MassMutual Credit Facility provides for borrowings through December 31, 2021 and matures on December 31, 2025.

    The MassMutual Credit Facility is priced at three-month LIBOR, with a LIBOR floor of 0.75%, plus a spread of 5.0% per annum. Interest is payable quarterly in arrears. BDCA Asset Financing will be subject to a non-usage fee of 0.50% to the extent the aggregate principal amount available under the MassMutual Credit Facility has not been borrowed. BDCA Asset Financing paid a structuring fee and incurred other customary costs and expenses in connection with the MassMutual Credit Facility.

    In connection with the MassMutual Credit Facility, the Company and BDCA Asset Financing have made certain representations and warranties and are required to comply with various covenants and other customary requirements. The MassMutual Credit Facility contains customary default provisions pursuant to which MassMutual may terminate the Company in its capacity as portfolio asset servicer of the portfolio assets under the MassMutual Credit Facility. Upon the occurrence of an event of default, MassMutual may declare the outstanding advances and all other obligations under the MassMutual Credit Facility immediately due and payable.

61

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

2020 Notes

    On August 26, 2015, the Company entered into a Purchase Agreement with certain initial purchasers, relating to the Company’s sale of $100.0 million aggregate principal amount of its 6.00% fixed rate senior notes due 2020 (the “2020 Notes”) to the initial purchasers in a private placement in reliance on Section 4(a)(2) of the Securities Act and for initial resale by the initial purchasers to qualified institutional buyers pursuant to the exemption from registration provided by Rule 144A promulgated under the Securities Act. The Company relied upon these exemptions from registration based in part on representations made by the initial purchasers. The Purchase Agreement included customary representations, warranties, and covenants by the Company. Under the terms of the Purchase Agreement, the Company had agreed to indemnify the initial purchasers against certain liabilities under the Securities Act. The 2020 Notes had not been registered under the Securities Act and could not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The net proceeds from the sale of the 2020 Notes was approximately $97.9 million, after deducting initial purchasers' discounts and commissions of approximately $1.6 million payable by the Company and estimated offering expenses of approximately $0.5 million payable by the Company. The Company used the net proceeds to make investments in accordance with the Company’s investment objectives and for general corporate purposes.

    The 2020 Notes were issued pursuant to an Indenture, dated as of August 31, 2015 (the “2015 Indenture”), between the Company and U.S. Bank National Association, trustee (the “Trustee”). The 2020 Notes bore interest at a rate of 6.00% per year payable semi-annually on March 1 and September 1 of each year, commencing on March 1, 2016.

    On August 14, 2020, the Company redeemed all outstanding 2020 Notes.

2022 Notes

    On December 14, 2017, the Company entered into a Purchase Agreement (the “2022 Notes Purchase Agreement”) with Sandler O'Neill & Partners, L.P. (the "Initial Purchaser") relating to the Company's sale of $150.0 million aggregate principal amount of its 4.75% fixed rate notes due 2022 (the “2022 Notes”) to the Initial Purchaser in a private placement in reliance on Section 4(a)(2) of the Securities Act and for initial resale by the Initial Purchaser to qualified institutional buyers pursuant to the exemption from registration provided by Rule 144A promulgated under the Securities Act and to institutional accredited investors under Rule 501(a)(1), (2), (3), or (7) under the Securities Act. The Company relied upon these exemptions from registration based in part on representations made by the Initial Purchaser. The 2022 Notes Purchase Agreement also includes customary representations, warranties, and covenants by the Company. Under the terms of the 2022 Notes Purchase Agreement, the Company has agreed to indemnify the Initial Purchaser against certain liabilities under the Securities Act. The 2022 Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The net proceeds from the sale of the 2022 Notes was approximately $147.0 million, after deducting an offering price discount of approximately $0.8 million, as well as Initial Purchaser’s discounts and commissions of approximately $1.7 million and offering expenses of approximately $0.6 million, each payable by the Company. The Company used the net proceeds to repay outstanding indebtedness, to make investments in portfolio companies in accordance with its investment objectives, and for general corporate purposes.

    The 2022 Notes were issued pursuant to the Indenture dated as of December 19, 2017 (the “2017 Indenture”), between the Company and the Trustee, and a Supplemental Indenture, dated as of December 19, 2017 (the “Supplemental Indenture”), between the Company and the Trustee. The 2022 Notes will mature on December 30, 2022, unless repurchased or redeemed in accordance with their terms prior to such date. The 2022 Notes bear interest at a rate of 4.75% per year payable semi-annually on June 30 and December 30 of each year, commencing on June 30, 2018. The 2022 Notes will be general unsecured obligations of the Company that rank senior in right of payment to all of the Company's existing and future indebtedness that is expressly subordinated in right of payment to the 2022 Notes. The 2022 Notes will rank equally in right of payment with all of the Company's existing and future senior liabilities that are not so subordinated, effectively junior to any of the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and structurally junior to all existing and future indebtedness incurred by the Company's subsidiaries, financing vehicles, or similar facilities, including credit facilities entered into by the Company's wholly owned, special purpose financing subsidiaries.

    The 2017 Indenture contains certain covenants, including covenants requiring the Company to (i) comply with the asset coverage requirements of the 1940 Act, whether or not it is subject to those requirements, and (ii) provide financial information to the holders of the 2022 Notes and the Trustee if the Company is no longer subject to the reporting requirements under the Securities Exchange Act of 1934, as amended. These covenants are subject to important limitations and exceptions that are described in the 2017 Indenture.

62

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    In addition, if a change of control repurchase event, as defined in the 2017 Indenture, occurs prior to maturity, holders of the 2022 Notes will have the right, at their option, to require the Company to repurchase for cash some or all of the 2022 Notes at a repurchase price equal to 100% of the principal amount of the 2022 Notes being repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date.

2023 Notes

    On May 11, 2018, the Company entered into a Purchase Agreement (the “2023 Notes Purchase Agreement”) with the Initial Purchaser relating to the Company’s sale of $60.0 million aggregate principal amount of its 5.375% fixed rate notes due 2023 (the “2023 Notes”) to the Initial Purchaser in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, and for initial resale by the Initial Purchaser to qualified institutional buyers pursuant to the exemption from registration provided by Rule 144A promulgated under the Securities Act and to institutional accredited investors under Rule 501 (a)(1), (2), (3), or (7) under the Securities Act. The Company relied upon these exemptions from registration based in part on representations made by the Initial Purchaser. The 2023 Notes Purchase Agreement also includes customary representations, warranties, and covenants by the Company. Under the terms of the 2023 Notes Purchase Agreement, the Company has agreed to indemnify the Initial Purchaser against certain liabilities under the Securities Act. The 2023 Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The net proceeds from the sale of the 2023 Notes were approximately $58.7 million, after deducting an offering price discount of approximately $0.3 million, as well as Initial Purchaser’s discounts and commissions of approximately $0.6 million and estimated offering expenses of approximately $0.4 million, each payable by the Company. The Company used the net proceeds to repay outstanding indebtedness, to make investments in portfolio companies in accordance with its investment objectives, and for general corporate purposes. The 2023 Notes were issued pursuant to the 2017 Indenture between the Company and The Trustee, and a Second Supplemental Indenture, dated as of May 16, 2018, between the Company and the Trustee. The 2023 Notes will mature on May 30, 2023, unless repurchased or redeemed in accordance with their terms prior to such date. The 2023 Notes bear interest at a rate of 5.375% per year payable semi-annually on May 30 and November 30 of each year, commencing on November 30, 2018. The 2023 Notes will be general unsecured obligations of the Company that rank senior in right of payment to all of the Company’s existing and future indebtedness that is expressly subordinated in right of payment to the 2023 Notes. The 2023 Notes will rank equally in right of payment with all of the Company’s existing and future senior liabilities that are not so subordinated, effectively junior to any of the Company’s secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and structurally junior to all existing and future indebtedness incurred by the Company’s subsidiaries, financing vehicles, or similar facilities, including credit facilities entered into by the Company’s wholly owned, special purpose financing subsidiaries. The 2017 Indenture contains certain covenants, including covenants requiring the Company to (i) comply with the asset coverage requirements of the 1940 Act, whether or not it is subject to those requirements, and (ii) provide financial information to the holders of the 2023 Notes and the Trustee if the Company is no longer subject to the reporting requirements under the Securities Exchange Act of 1934, as amended. These covenants are subject to important limitations and exceptions that are described in the 2017 Indenture. In addition, if a change of control repurchase event, as defined in the 2017 Indenture, occurs prior to maturity, holders of the 2023 Notes will have the right, at their option, to require the Company to repurchase for cash some or all of the 2023 Notes at a repurchase price equal to 100% of the principal amount of the 2023 Notes being repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date.

63

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

2024 Notes

    On December 3, 2019, the Company entered into a Purchase Agreement (the “2024 Notes Purchase Agreement”) with the Initial Purchaser relating to the Company’s sale of $100.0 million aggregate principal amount of its 4.85% fixed rate notes due 2024 (the “2024 Notes”) to the Initial Purchaser in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, and for initial resale by the Initial Purchaser to qualified institutional buyers pursuant to the exemption from registration provided by Rule 144A promulgated under the Securities Act and to institutional accredited investors under Rule 501 (a)(1), (2), (3), or (7) under the Securities Act. The Company relied upon these exemptions from registration based in part on representations made by the Initial Purchaser. The 2024 Notes Purchase Agreement also includes customary representations, warranties, and covenants by the Company. Under the terms of the 2024 Notes Purchase Agreement, the Company has agreed to indemnify the Initial Purchaser against certain liabilities under the Securities Act. The 2024 Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The net proceeds from the sale of the 2024 Notes were approximately $98.4 million, after deducting the Initial Purchaser’s discounts and commissions of approximately $1.2 million and estimated offering expenses of approximately $0.4 million, each payable by the Company. The Company used the net proceeds to repay outstanding indebtedness, to make investments in portfolio companies in accordance with its investment objectives, and for general corporate purposes. The 2024 Notes were issued pursuant to the 2017 Indenture between the Company and The Trustee, and a Third Supplemental Indenture, dated as of December 5, 2019, between the Company and the Trustee. The 2024 Notes will mature on December 15, 2024, unless repurchased or redeemed in accordance with their terms prior to such date. The 2024 Notes bear interest at a rate of 4.85% per year payable semi-annually on June 15 and December 15 of each year, commencing on June 15, 2020. The 2024 Notes will be general unsecured obligations of the Company that rank senior in right of payment to all of the Company’s existing and future indebtedness that is expressly subordinated in right of payment to the 2024 Notes. The 2024 Notes will rank equally in right of payment with all of the Company’s existing and future senior liabilities that are not so subordinated, effectively junior to any of the Company’s secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and structurally junior to all existing and future indebtedness incurred by the Company’s subsidiaries, financing vehicles, or similar facilities, including credit facilities entered into by the Company’s wholly owned, special purpose financing subsidiaries. The 2017 Indenture contains certain covenants, including covenants requiring the Company to (i) comply with the asset coverage requirements of the 1940 Act, whether or not it is subject to those requirements, and (ii) provide financial information to the holders of the 2024 Notes and the Trustee if the Company is no longer subject to the reporting requirements under the Securities Exchange Act of 1934, as amended. These covenants are subject to important limitations and exceptions that are described in the 2017 Indenture. In addition, if a change of control repurchase event, as defined in the 2017 Indenture, occurs prior to maturity, holders of the 2024 Notes will have the right, at their option, to require the Company to repurchase for cash some or all of the 2024 Notes at a repurchase price equal to 100% of the principal amount of the 2024 Notes being repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date.

64

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

2026 Notes

On March 24, 2021, the Company entered into a Purchase Agreement (the “2026 Notes Purchase Agreement”) with the initial purchaser listed therein relating to the Company’s sale of $300.0 million aggregate principal amount of its 3.25% fixed rate notes due 2026 (the “2026 Notes”) to the Initial Purchaser in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, and for initial resale by the Initial Purchaser to qualified institutional buyers pursuant to the exemption from registration provided by Rule 144A promulgated under the Securities Act and to certain non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The Company relied upon these exemptions from registration based in part on representations made by the Initial Purchaser. The 2026 Notes Purchase Agreement also includes customary representations, warranties, and covenants by the Company. Under the terms of the 2026 Notes Purchase Agreement, the Company has agreed to indemnify the Initial Purchaser against certain liabilities under the Securities Act. The 2026 Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The net proceeds from the sale of the 2026 Notes were approximately $296.0 million, after deducting the Initial Purchaser’s discounts and commissions and estimated offering expenses. The Company used the net proceeds to repay outstanding indebtedness, to make investments in portfolio companies in accordance with its investment objectives, and for general corporate purposes. The 2026 Notes were issued pursuant to the Indenture dated as of March 29, 2021 (the “2021 Indenture”), between the Company and the Trustee, and a Supplemental Indenture, dated as of March 29, 2021 (the “First Supplemental Indenture”), between the Company and the Trustee. The 2026 Notes will mature on March 30, 2026, unless repurchased or redeemed in accordance with their terms prior to such date. The 2026 Notes bear interest at a rate of 3.25% per year payable semi-annually on March 30 and September 30 of each year, commencing on September 30, 2021. The 2026 Notes will be general unsecured obligations of the Company that rank senior in right of payment to all of the Company’s existing and future indebtedness that is expressly subordinated in right of payment to the 2026 Notes. The 2026 Notes will rank equally in right of payment with all of the Company’s existing and future senior liabilities that are not so subordinated, effectively junior to any of the Company’s secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and structurally junior to all existing and future indebtedness incurred by the Company’s subsidiaries, financing vehicles, or similar facilities, including credit facilities entered into by the Company’s wholly owned, special purpose financing subsidiaries. The 2021 Indenture contains certain covenants, including covenants requiring the Company to (i) comply with the asset coverage requirements of the 1940 Act, whether or not it is subject to those requirements, and (ii) provide financial information to the holders of the 2026 Notes and the Trustee if the Company is no longer subject to the reporting requirements under the Securities Exchange Act of 1934, as amended. These covenants are subject to important limitations and exceptions that are described in the 2021 Indenture. In addition, if a change of control repurchase event, as defined in the 2021 Indenture, occurs prior to maturity, holders of the 2026 Notes will have the right, at their option, to require the Company to repurchase for cash some or all of the 2026 Notes at a repurchase price equal to 100% of the principal amount of the 2026 Notes being repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. In connection with the sale of the 2026 Notes, the Company entered into a Registration Rights Agreement, dated as of March 29, 2021 (the “Registration Rights Agreement”), with J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, as the representatives of the initial purchasers of the 2026 Notes. Pursuant to the Registration Rights Agreement, the Company is obligated to file with the SEC a registration statement requiring the Company to an offer to exchange the 2026 Notes for new notes issued by the Company that are registered under the Securities Act and otherwise have terms substantially identical to those of the 2026 Notes, and to use its commercially reasonable efforts to cause such registration statement to be declared effective. If the Company is not able to effect the exchange offer, the Company will be obligated to file a shelf registration statement covering the resale of the 2026 Notes and use its commercially reasonable efforts to cause such registration statement to be declared effective. If the Company fails to satisfy its registration obligations by certain dates specified in the Registration Rights Agreement, it will be required to pay additional interest to the holders of the 2026 Notes.

65

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    The following table represents borrowings as of March 31, 2021:

						Maturity Date						Total Aggregate Borrowing Capacity						Total Principal Outstanding						Less Deferred Financing Costs						Amount per Consolidated Statements of Assets and Liabilities
Wells Fargo Credit Facility						8/28/2025						$	300,000					$	173,700					$	(6,724)					$	166,976
JPM Credit Facility						8/28/2023						400,000						120,000						(1,052)						118,948
MassMutual Credit Facility						12/31/2025						100,000						—						(2,147)						(2,147)
2026 Notes						3/30/2026						300,000						296,101						(495)						295,606
2024 Notes						12/15/2024						100,000						99,116						(138)						98,978
2023 Notes						5/30/2023						60,000						59,859						(408)						59,451
2022 Notes						12/30/2022						150,000						149,711						(797)						148,914
Totals												$	1,410,000					$	898,487					$	(11,761)					$	886,726

    

    The following table represents borrowings as of December 31, 2020:

						Maturity Date						Total Aggregate Borrowing Capacity						Total Principal Outstanding						Less Deferred Financing Costs						Amount per Consolidated Statements of Assets and Liabilities
Wells Fargo Credit Facility						8/28/2025						$	300,000					$	253,000					$	(7,099)					$	245,901
JPM Credit Facility						8/28/2023						300,000						289,000						(894)						288,106
Citi Credit Facility						5/31/2022						400,000						267,250						(1,335)						265,915
MassMutual Credit Facility						12/31/2025						100,000						—						(2,258)						(2,258)
2024 Notes						12/15/2024						100,000						99,057						(147)						98,910
2023 Notes						5/30/2023						60,000						59,843						(455)						59,388
2022 Notes						12/30/2022						150,000						149,671						(910)						148,761
Totals												$	1,410,000					$	1,117,821					$	(13,098)					$	1,104,723

    The weighted average annualized interest cost for all borrowings for the three months ended March 31, 2021 and 2020 was 3.50% and 4.11%, respectively. The average daily debt outstanding for the three months ended March 31, 2021 and 2020 was $1.0 billion and $1.2 billion, respectively. The maximum debt outstanding for the three months ended March 31, 2021 and 2020 was $1.6 billion and $1.3 billion, respectively.

66

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

The following table represents interest and debt fees for the three months ended March 31, 2021:

			Three months ended March 31, 2021
			Interest Rate						Non-Usage Rate						Interest Expense						Deferred Financing Costs (6)						Other Fees (7)
Wells Fargo Credit Facility			(1)						(2)						$	1,938					$	376					$	60
JPM Credit Facility			(3)						(4)						2,172						104						183
Citi Credit Facility (8)			L+1.60%						0.50%						277						49						48
MassMutual Credit Facility			(5)						0.50%						—						111						138
2026 Notes			3.25%						n/a						60						1						—
2024 Notes			4.85%						n/a						1,271						9						—
2023 Notes			5.38%						n/a						822						47						—
2022 Notes			4.75%						n/a						1,822						112						—
Totals															$	8,362					$	809					$	429

______________

(1) Prior to an amendment on July 7, 2020, the Wells Fargo Credit Facility had an interest rate priced at one-month LIBOR, with no LIBOR floor, plus a spread ranging between 1.65% and 2.50% per annum, depending on the composition of the portfolio of loans owned. From July 7, 2020 until August 28, 2020, the Wells Fargo Credit Facility had an interest rate priced at one-month LIBOR, with no LIBOR floor, plus a spread of 2.75% per annum. From August 28, 2020 through March 31, 2021, the Wells Fargo Credit Facility had an interest rate priced at three-month LIBOR, with a LIBOR floor of zero, plus a spread calculated based upon the composition of the loans in the collateral pool, which will not exceed 2.75% per annum.

(2) The non-usage fee per annum is 0.50% for the first 25% of the unused balance and 2.0% for the portion of the unused balance that exceeds 25%.

(3) Interest rate is priced at three-month LIBOR, with a LIBOR floor of zero, plus a spread of 2.75% per annum.

(4) The non-usage fee per annum is 0.50% for the first 20% of the unused balance and 2.75% for the portion of the unused balance that exceeds 20%.

(5) Interest rate is priced at three-month LIBOR, with a LIBOR floor of 0.75%, plus a spread of 5.0% per annum.

(6) Amortization of deferred financing costs.

(7) Includes non-usage fees and custody fees.

(8) Amounts presented represent activity prior to the Citi Credit Agreement on January 20, 2021.

67

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    The following table represents interest and debt fees for the three months ended March 31, 2020:

			Three months ended March 31, 2020
			Interest Rate						Non-Usage Rate						Interest Expense						Deferred Financing Costs (3)						Other Fees (4)
Wells Fargo Credit Facility			(1)						(2)						$	4,475					$	500					$	182
Citi Credit Facility			L+1.60%						0.50%						2,557						233						139
2024 Notes			4.85%						n/a						1,272						9						13
2023 Notes			5.38%						n/a						823						47						—
2022 Notes			4.75%						n/a						1,823						114						—
2020 Notes			6.00%						n/a						1,562						31						—
Totals															$	12,512					$	934					$	334

_____________

(1) Interest rate is priced at one month's LIBOR with no LIBOR floor, plus a spread ranging between 1.65% and 2.50% per annum, depending on the composition of the portfolio of loans owned.

(2) Prior to the most recent amendment (March 15, 2019), the non-usage fee per annum is 0.50% for the first 25% of the unused balance and 2.0% for the portion of the unused balance that exceeds 25%. The non-usage fee for the three months from the most recent amendment is 0.50% on any principal amount unused. After the three months from the most recent amendment, the non-usage fee per annum is 0.50% for the first 25% of the unused balance and 2.0% for the portion of the unused balance that exceeds 25%.

(3) Amortization of deferred financing costs.

(4) Includes non-usage fees, custody fees, and trustee fees.

The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate fair value. The fair value of short-term financial instruments such as cash and cash equivalents, due to affiliates, and accounts payable approximate their carrying value on the accompanying consolidated statements of assets and liabilities due to their short-term nature. The fair value of the Company's 2022 Notes, 2023 Notes, 2024 Notes, and 2026 Notes, are derived from market indications provided by Bloomberg Finance L.P. at March 31, 2021 and December 31, 2020.

    At March 31, 2021, the carrying amount of the Company's secured borrowings approximated their fair value. The fair values of the Company's debt obligations 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 Company's borrowings is estimated based upon market interest rates for the Company's own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. As of March 31, 2021 and December 31, 2020, the Company's borrowings would be deemed to be Level 3, as defined in Note 3 - Fair Value of Financial Instruments.

    The fair values of the Company’s remaining financial instruments that are not reported at fair value on the accompanying consolidated statements of assets and liabilities are reported below:

			Level						Carrying Amount at March 31, 2021						Fair Value at March 31, 2021
Wells Fargo Credit Facility			3						$	173,700					$	173,700
JPM Credit Facility			3						120,000						120,000
MassMutual Credit Facility			3						—						—
2026 Notes			3						296,101						296,793
2024 Notes			3						99,116						101,034
2023 Notes			3						59,859						62,014
2022 Notes			3						149,711						154,692
									$	898,487					$	908,233

68

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

			Level						Carrying Amount at December 31, 2020						Fair Value at December 31, 2020
Wells Fargo Credit Facility			3						$	253,000					$	253,000
JPM Credit Facility			3						289,000						289,000
Citi Credit Facility			3						267,250						267,250
MassMutual Credit Facility			3						—						—
2024 Notes			3						99,057						100,216
2023 Notes			3						59,843						61,388
2022 Notes			3						149,671						153,440
									$	1,117,821					$	1,124,294

Note 6 — Derivatives

    Foreign Currency

    The Company may enter into forward foreign currency contracts from time to time to facilitate settlement of purchases and sales of investments denominated in foreign currencies or to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the Company's investments denominated in foreign currencies. A forward foreign currency contract is a commitment to purchase or sell a foreign currency at a future date (usually the security transaction settlement date) at a negotiated forward rate. These contracts are marked-to-market by recognizing the difference between the contract exchange rate and the current market rate as unrealized appreciation or depreciation. Realized gains or losses are recognized when contracts are settled. The Company's forward foreign currency contracts generally have terms of approximately three months. The volume of open contracts at the end of each reporting period is reflective of the typical volume of transactions during each calendar quarter. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. The Company attempts to limit this risk by dealing with creditworthy counterparties.

    At March 31, 2021 and December 31, 2020, the forward foreign currency contracts were classified within Level 2 of the fair value hierarchy. The foreign currency forward contract held as of March 31, 2021, was subject to ISDA Master Agreements or similar agreements. The foreign currency forward contract held as of December 31, 2020, was subject to ISDA Master Agreements or similar agreements.

    The Company is operated by a person who has claimed an exclusion from the definition of the "commodity pool operator" under the Commodity Exchange Act, and, therefore, who is not subject to registration or regulation as a pool operator under such Act.

Note 7 — Commitments and Contingencies

Commitments

    In the ordinary course of business, the Company may enter into future funding commitments. As of March 31, 2021, the Company had unfunded commitments on delayed draw term loans of $44.3 million (including $42.1 million of non-discretionary commitments and $2.2 million of discretionary commitments), unfunded commitments on revolver term loans of $49.4 million, unfunded equity capital discretionary commitments of $11.1 million, and unfunded commitments on term loans of $3.8 million. As of December 31, 2020, the Company had unfunded commitments on delayed draw term loans of $42.7 million (including $40.2 million of non-discretionary commitments and $2.5 million of discretionary commitments), unfunded commitments on revolver term loans of $48.5 million, unfunded equity capital discretionary commitments of $11.1 million, and unfunded commitments on term loans of $3.8 million. The Company maintains sufficient cash on hand and available borrowing capacity to fund such unfunded commitments.

69

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    As of March 31, 2021, the Company's unfunded commitments consisted of the following:

March 31, 2021

Portfolio Company Name

Investment Type

Commitment Type

Total Commitment

Remaining Commitment

Arch Global Precision, LLC

Senior Secured First Lien Debt

Delayed draw term loan

$

978

$

978

Arch Global Precision, LLC

Senior Secured First Lien Debt

Revolver term loan

1,008

1,008

Arctic Holdco, LLC

Senior Secured First Lien Debt

Revolver term loan

2,844

2,002

Capstone Logistics

Senior Secured First Lien Debt

Delayed draw term loan

2,948

2,948

Capstone Logistics

Senior Secured First Lien Debt

Revolver term loan

1,804

1,804

CCW, LLC

Senior Secured First Lien Debt

Revolver term loan

1,500

1,500

CDHA Holdings, LLC

Senior Secured First Lien Debt

Revolver term loan

1,264

1,264

Cobblestone Intermediate Holdco, LLC

Senior Secured First Lien Debt

Delayed draw term loan

9,499

9,499

CRS-SPV, Inc.

Senior Secured First Lien Debt

Revolver term loan

224

162

Dynagrid Holdings, LLC

Senior Secured First Lien Debt

Revolver term loan

2,262

2,149

Florida Food Products, LLC

Senior Secured First Lien Debt

Revolver term loan

1,647

1,186

Health Plan One, Inc.

Senior Secured First Lien Debt

Revolver term loan

1,458

1,458

Higginbotham Insurance Agency, Inc.

Senior Secured First Lien Debt

Delayed draw term loan

3,259

3,259

Hospice Care Buyer, Inc.

Senior Secured First Lien Debt

Term loan

24,739

2,863

Hospice Care Buyer, Inc.

Senior Secured First Lien Debt

Delayed draw term loan

4,599

2,379

Hospice Care Buyer, Inc.

Senior Secured First Lien Debt

Revolver term loan

2,775

2,498

ICR Operations, LLC

Senior Secured First Lien Debt

Revolver term loan

2,753

2,753

Ideal Tridon Holdings, Inc.

Senior Secured First Lien Debt

Delayed draw term loan

79

33

Ideal Tridon Holdings, Inc.

Senior Secured First Lien Debt

Revolver term loan

2,810

2,368

Integral Ad Science, Inc.

Senior Secured First Lien Debt

Revolver term loan

1,085

1,085

Integrated Global Services, Inc.

Senior Secured First Lien Debt

Revolver term loan

2,028

406

KMTEX, LLC (1)

Senior Secured First Lien Debt

Delayed draw term loan

2,686

2,209

Lakeview Health Holdings, Inc.

Senior Secured First Lien Debt

Revolver term loan

332

186

Manna Pro Products, LLC

Senior Secured First Lien Debt

Delayed draw term loan

4,059

4,059

Manna Pro Products, LLC

Senior Secured First Lien Debt

Revolver term loan

2,706

2,706

McDonald Worley, P.C.

Senior Secured First Lien Debt

Term loan

11,000

953

Midwest Can Company, LLC

Senior Secured First Lien Debt

Revolver term loan

2,019

606

Miller Environmental Group, Inc.

Senior Secured First Lien Debt

Delayed draw term loan

1,131

1,131

Miller Environmental Group, Inc.

Senior Secured First Lien Debt

Revolver term loan

1,324

1,324

Mintz Group, LLC

Senior Secured First Lien Debt

Delayed draw term loan

1,344

1,344

Mintz Group, LLC

Senior Secured First Lien Debt

Revolver term loan

630

630

Muth Mirror Systems, LLC

Senior Secured First Lien Debt

Revolver term loan

1,299

1,299

New Amsterdam Software Bidco, LLC

Senior Secured First Lien Debt

Delayed draw term loan

1,790

1,790

Norvax, LLC

Senior Secured First Lien Debt

Revolver term loan

1,152

1,152

Olaplex, Inc.

Senior Secured First Lien Debt

Revolver term loan

1,908

1,908

Pilot Air Freight, LLC

Senior Secured First Lien Debt

Delayed draw term loan

2,334

2,334

Planet Equity Group, LLC

Senior Secured First Lien Debt

Revolver term loan

2,325

1,744

Prototek, LLC

Senior Secured First Lien Debt

Delayed draw term loan

2,257

2,257

Prototek, LLC

Senior Secured First Lien Debt

Revolver term loan

1,693

790

PT Network, LLC

Senior Secured First Lien Debt

Revolver term loan

1,316

1,316

Questex, Inc.

Senior Secured First Lien Debt

Revolver term loan

2,584

689

Reddy Ice Corp.

Senior Secured First Lien Debt

Delayed draw term loan

1,477

1,477

Reddy Ice Corp.

Senior Secured First Lien Debt

Revolver term loan

1,762

1,762

Refresh Parent Holdings, Inc.

Senior Secured First Lien Debt

Delayed draw term loan

3,140

1,430

Refresh Parent Holdings, Inc.

Senior Secured First Lien Debt

Revolver term loan

1,127

1,127

REP TEC Intermediate Holdings, Inc.

Senior Secured First Lien Debt

Revolver term loan

741

741

SCIH Salt Holdings, Inc.

Senior Secured First Lien Debt

Revolver term loan

3,746

3,746

70

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Portfolio Company Name						Investment Type						Commitment Type						Total Commitment						Remaining Commitment
St. Croix Hospice Acquisition Corp.						Senior Secured First Lien Debt						Delayed draw term loan						$	5,639					$	5,639
St. Croix Hospice Acquisition Corp.						Senior Secured First Lien Debt						Revolver term loan						2,256						2,256
Subsea Global Solutions, LLC						Senior Secured First Lien Debt						Revolver term loan						963						674
Tap Rock Resources, LLC (1)						Equity/Other						Equity						29,470						11,114
University of St. Augustine Acquisition Corp.						Senior Secured First Lien Debt						Revolver term loan						2,615						2,615
WMK, LLC						Senior Secured First Lien Debt						Delayed draw term loan						1,918						1,562
WMK, LLC						Senior Secured First Lien Debt						Revolver term loan						2,620						436
Total																		$	174,926					$	108,608

_____________

(1) The commitment related to this investment is discretionary.

71

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    As of December 31, 2020, the Company's unfunded commitments consisted of the following:

December 31, 2020

Portfolio Company Name

Investment Type

Commitment Type

Total Commitment

Remaining Commitment

Achilles Acquisition, LLC

Senior Secured First Lien Debt

Delayed draw term loan

$

445

$

445

Arch Global Precision, LLC

Senior Secured First Lien Debt

Delayed draw term loan

1,129

1,129

Arch Global Precision, LLC

Senior Secured First Lien Debt

Revolver term loan

1,008

1,008

Arctic Holdco, LLC

Senior Secured First Lien Debt

Revolver term loan

2,844

2,457

Capstone Logistics

Senior Secured First Lien Debt

Delayed draw term loan

2,948

2,948

Capstone Logistics

Senior Secured First Lien Debt

Revolver term loan

1,804

1,665

CCW, LLC

Senior Secured First Lien Debt

Revolver term loan

1,605

600

CDHA Holdings, LLC

Senior Secured First Lien Debt

Revolver term loan

1,264

1,264

CRS-SPV, Inc.

Senior Secured First Lien Debt

Revolver term loan

224

162

Dynagrid Holdings, LLC

Senior Secured First Lien Debt

Revolver term loan

2,262

2,149

Florida Food Products, LLC

Senior Secured First Lien Debt

Revolver term loan

1,647

1,186

HAH Group Holding Company, LLC

Senior Secured First Lien Debt

Delayed draw term loan

741

741

Health Plan One, Inc.

Senior Secured First Lien Debt

Revolver term loan

1,458

1,458

Higginbotham Insurance Agency, Inc.

Senior Secured First Lien Debt

Delayed draw term loan

3,259

3,259

Hospice Care Buyer, Inc.

Senior Secured First Lien Debt

Delayed draw term loan

4,599

4,599

Hospice Care Buyer, Inc.

Senior Secured First Lien Debt

Term Loan

24,739

2,863

Hospice Care Buyer, Inc.

Senior Secured First Lien Debt

Revolver term loan

2,775

2,379

ICR Operations, LLC

Senior Secured First Lien Debt

Revolver term loan

2,753

1,846

Ideal Tridon Holdings, Inc.

Senior Secured First Lien Debt

Delayed draw term loan

79

33

Ideal Tridon Holdings, Inc.

Senior Secured First Lien Debt

Revolver term loan

2,810

2,368

Integral Ad Science, Inc.

Senior Secured First Lien Debt

Revolver term loan

1,085

1,085

Integrated Global Services, Inc.

Senior Secured First Lien Debt

Revolver term loan

2,028

406

KMTEX, LLC (1)

Senior Secured First Lien Debt

Delayed draw term loan

2,682

2,464

Lakeview Health Holdings, Inc.

Senior Secured First Lien Debt

Revolver term loan

328

186

Manna Pro Products, LLC

Senior Secured First Lien Debt

Delayed draw term loan

4,059

4,059

Manna Pro Products, LLC

Senior Secured First Lien Debt

Revolver term loan

2,706

2,706

McDonald Worley, P.C.

Senior Secured First Lien Debt

Term loan

11,000

953

Midwest Can Company, LLC

Senior Secured First Lien Debt

Revolver term loan

2,019

2,019

Miller Environmental Group, Inc.

Senior Secured First Lien Debt

Delayed draw term loan

1,131

1,131

Miller Environmental Group, Inc.

Senior Secured First Lien Debt

Revolver term loan

1,324

1,324

Mintz Group, LLC

Senior Secured First Lien Debt

Delayed draw term loan

1,344

1,344

Mintz Group, LLC

Senior Secured First Lien Debt

Revolver term loan

630

630

Muth Mirror Systems, LLC

Senior Secured First Lien Debt

Revolver term loan

1,299

1,299

New Amsterdam Software Bidco, LLC

Senior Secured First Lien Debt

Delayed draw term loan

1,790

1,790

Norvax, LLC

Senior Secured First Lien Debt

Revolver term loan

1,152

1,152

Olaplex, Inc.

Senior Secured First Lien Debt

Revolver term loan

1,908

1,908

Planet Equity Group, LLC

Senior Secured First Lien Debt

Revolver term loan

2,325

2,325

Prototek, LLC

Senior Secured First Lien Debt

Delayed draw term loan

2,257

2,257

Prototek, LLC

Senior Secured First Lien Debt

Revolver term loan

1,693

1,016

PT Network, LLC

Senior Secured First Lien Debt

Revolver term loan

1,316

1,316

Questex, Inc.

Senior Secured First Lien Debt

Revolver term loan

2,584

689

Reddy Ice Corp.

Senior Secured First Lien Debt

Delayed draw term loan

2,505

1,234

Reddy Ice Corp.

Senior Secured First Lien Debt

Delayed draw term loan

1,477

1,477

Reddy Ice Corp.

Senior Secured First Lien Debt

Revolver term loan

1,762

1,762

Refresh Parent Holdings, Inc.

Senior Secured First Lien Debt

Delayed draw term loan

3,144

3,144

Refresh Parent Holdings, Inc.

Senior Secured First Lien Debt

Revolver term loan

1,127

807

REP TEC Intermediate Holdings, Inc.

Senior Secured First Lien Debt

Delayed draw term loan

2,223

2,223

72

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

REP TEC Intermediate Holdings, Inc.						Senior Secured First Lien Debt						Revolver term loan						$	741					$	741
Safety Products/JHC Acquisition Corp.						Senior Secured First Lien Debt						Delayed draw term loan						2,162						1,214
SCIH Salt Holdings, Inc.						Senior Secured First Lien Debt						Revolver term loan						3,746						2,593
St. Croix Hospice Acquisition Corp.						Senior Secured First Lien Debt						Delayed draw term loan						5,639						5,639
St. Croix Hospice Acquisition Corp.						Senior Secured First Lien Debt						Revolver term loan						2,256						2,256
Subsea Global Solutions, LLC						Senior Secured First Lien Debt						Revolver term loan						963						578
Tap Rock Resources, LLC (1)						Equity/Other						Equity						29,470						11,114
Tillamook Country Smoker, LLC						Senior Secured First Lien Debt						Revolver term loan						2,696						135
University of St. Augustine Acquisition Corp.						Senior Secured First Lien Debt						Revolver term loan						2,615						2,615
WMK, LLC						Senior Secured First Lien Debt						Delayed draw term loan						1,918						1,562
WMK, LLC						Senior Secured First Lien Debt						Revolver term loan						2,618						436
Total																		$	174,115					$	106,148

_____________

(1) The commitment related to this investment is discretionary.

Litigation and Regulatory Matters

In the ordinary course of business, the Company may become subject to litigation, claims, and regulatory matters. The Company has no knowledge of material legal or regulatory proceedings pending or known to be contemplated against the Company at this time.

Indemnifications

In the ordinary course of its business, the Company may enter into contracts or agreements that contain indemnifications or warranties. Future events could occur that lead to the execution of these provisions against the Company. Based on its history and experience, management feels that the likelihood of such an event is remote.

Note 8 — Economic Dependency

    Under various agreements, the Company has engaged or will engage the Adviser and its affiliates to provide certain services that are essential to the Company, including asset management services, asset acquisition and disposition decisions, the sale of shares of the Company’s common stock available for issuance, as well as other administrative responsibilities for the Company including accounting services and investor relations.

    As a result of these relationships, the Company is dependent upon the Adviser and its affiliates. In the event that these companies were unable to provide the Company with the respective services, the Company would be required to find alternative providers of these services.

Note 9 — Common Stock

    On August 25, 2011, the Company had raised sufficient funds to break escrow on its IPO. On July 1, 2014, the Company's registration statement on Form N-2 (File No.333-193241) for its Follow-on was declared effective by the SEC. Simultaneously with the effectiveness of the registration statement of the Follow-on, the Company's IPO terminated. Through March 31, 2021, the Company issued 230.0 million shares of common stock for gross proceeds of $2.4 billion, including the shares purchased by an affiliate of BSP and shares issued under the Company's DRIP. Following the time the Company's updated registration statement was declared effective on June 30, 2015, the Company issued shares for subscription agreements that had been accepted through that date. The Company suspended the DRIP from March 29, 2020 through June 26, 2020. While the DRIP was suspended, participants and all other holders of the Company's common stock received distributions paid by the Company in cash. From inception of the Company's DRIP plan to March 31, 2021, the Company had repurchased 30.7 million shares of common stock through its share repurchase program for payments of $258.5 million. As of December 31, 2020, the Company had repurchased 27.9 million shares of common stock for payments of $239.7 million. Amounts include additional shares tendered for death and disability as permitted.

    On March 31, 2020, the Company issued in a private placement an aggregate amount of 9,532,062 newly issued shares of its common stock at a price of $5.77 per share for aggregate cash proceeds of $55.0 million. On April 30, 2020, the Company issued in a private placement an aggregate amount of 693,240 newly issued shares of its common stock at a price of $5.77 per share for aggregate cash proceeds of $4.0 million.

73

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    The following table reflects the common stock activity for the three months ended March 31, 2021:

						Shares						Value
Shares Sold						—						$	—
Shares Issued through DRIP						658,852						4,579
Share Repurchases						(2,801,712)						(18,799)
						(2,142,860)						$	(14,220)

    The following table reflects the common stock activity for the year ended December 31, 2020:

						Shares						Value
Shares Sold						10,225,302						$	59,000
Shares Issued through DRIP						3,213,102						22,332
Share Repurchases						(2,255,193)						(17,477)
						11,183,211						$	63,855

The following table reflects the stockholders' equity activity for the three months ended March 31, 2021:

			Common stock - shares						Common stock - par						Additional paid in capital						Total distributable earnings (loss)												Total Stockholders' Equity
Balance as of December 31, 2020			201,390,728						$	201					$	1,908,116					$	(508,562)											$	1,399,755
Net investment income			—						—						—						26,618												26,618
Net realized loss from investment transactions			—						—						—						(2,563)												(2,563)
Net change in unrealized appreciation on investments and foreign exchange currency contracts, net of change in deferred taxes			—						—						—						42,924												42,924
Repurchases			(2,801,712)						(3)						(18,796)						—												(18,799)
Distributions to stockholders			—						—						—						(19,757)												(19,757)
Reinvested dividends			658,852						1						4,578						—												4,579
Balance as of March 31, 2021			199,247,868						$	199					$	1,893,898					$	(461,340)											$	1,432,757

The following table reflects the stockholders' equity activity for the three months ended March 31, 2020:

			Common stock - shares						Common stock - par						Additional paid in capital						Total distributable earnings (loss)												Total Stockholders' Equity
Balance as of December 31, 2019			190,207,517						$	190					$	1,847,312					$	(384,819)											$	1,462,683
Net investment income			—						—						—						25,558												25,558
Net realized loss from investment transactions			—						—						—						(13,985)												(13,985)
Net change in unrealized depreciation on investments and foreign exchange currency contracts, net of change in deferred taxes			—						—						—						(205,292)												(205,292)
Issuance of common stock, net of issuance costs			9,532,062						10						54,990						—												55,000
Repurchases			(2,134,416)						(2)						(16,539)						—												(16,541)
Distributions to stockholders			—						—						—						(30,727)												(30,727)
Reinvested dividends			1,046,828						1						8,112						—												8,113
Balance as of March 31, 2020			198,651,991						$	199					$	1,893,875					$	(609,265)											$	1,284,809

74

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Note 10 — Share Repurchase Program

The Company intends to conduct annual tender offers pursuant to its share repurchase program (“SRP”). The Company’s Board of Directors considers the following factors in making its determination regarding whether to cause the Company to offer to repurchase shares and under what terms:

•the effect of such repurchases on the Company's qualification as a RIC (including the consequences of any necessary asset sales);

•the liquidity of the Company's assets (including fees and costs associated with disposing of assets);

•the Company's investment plans and working capital requirements;

•the relative economies of scale with respect to the Company's size;

•the Company's history in repurchasing shares or portions thereof;

•the condition of the securities markets.

    On June 26, 2020, the Company's Board of Directors amended the Company's SRP. The Company intends to conduct tender offers on an annual basis, instead of on a semi-annual basis as was done previously. The Company intends to continue to limit the number of shares to be repurchased in any calendar year to the lesser of (i) 10% of the weighted average number of shares outstanding in the prior calendar year or (ii) the number of shares of common stock the Company is able to repurchase with the proceeds received from the sale of shares of common stock under the DRIP during the relevant redemption period. In addition, in the event of a stockholder’s death or disability, the Company may, in its sole discretion, accept up to the full amount tendered by such stockholder of the current net asset value per share. Any repurchases of shares made in connection with a stockholder’s death or disability may be included within the overall limitation imposed on tender offers during the relevant redemption period, which provides that the Company may limit the number of shares to be repurchased during any redemption period to the number of shares of common stock the Company is able to repurchase with the proceeds received from the sale of shares of common stock under the DRIP during such redemption period. The Company's nine most recent tender offers were oversubscribed.

Offer Date						Repurchase Date						Shares Tendered						Shares Repurchased						Repurchase Price Per Share						Aggregate Consideration for Repurchased Shares (in thousands)
December 17, 2019						January 27, 2020						37,389,681						2,115,276						$	7.75					$	16,698.90
December 15, 2020						January 26, 2021						39,794,155						2,776,140						$	6.71					$	18,627.86

    Share amounts in the table above represent amounts filed in the tender offer.

Note 11 — Earnings Per Share

    Basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of shares outstanding during the period. Other potentially dilutive shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. The Company had no potentially dilutive securities for the periods ended March 31, 2021 and 2020.

    The following information sets forth the computation of the weighted average basic and diluted net increase in net assets per share resulting from operations for the three months ended March 31, 2021 and 2020.

			For the three months ended March 31,
			2021						2020
Basic and diluted
Net increase (decrease) in net assets resulting from operations			$	66,979					$	(193,719)
Weighted average common shares outstanding			200,340,731						190,106,420
Net increase (decrease) in net assets resulting from operations per share			$	0.33					$	(1.02)

75

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Note 12 — Distributions

    For the period from January 1, 2018 to March 29, 2020, the Company’s Board of Directors had authorized, and had declared, cash distributions payable on a monthly basis to stockholders of record at a distribution rate of $0.00178082 per day, which is equivalent to approximately $0.65 annually, per share of common stock, except for 2020 where the daily distribution rate was $0.00177596 per day to accurately reflect 2020 being a leap year. Effective April 21, 2020, the Board of Directors of the Company approved a transition in the timing of its distributions to holders of the Company's common stock from a monthly to a quarterly basis. On June 26, 2020, the Board declared a regular quarterly cash dividend of $0.10 per share of the Company's common stock, payable on July 6, 2020 to stockholders of record as of June 30, 2020. On September 25, 2020, the Board declared a regular quarterly cash dividend of $0.10 per share of the Company's common stock, payable on October 1, 2020 to stockholders of record as of September 30, 2020. On November 9, 2020, the Board declared a regular quarterly cash dividend of $0.10 per share of the Company's common stock, payable on January 4, 2021 to stockholders of record as of December 31, 2020. On March 11, 2021, the Board declared a regular quarterly cash dividend of $0.10 per share of the Company's common stock, payable on April 1, 2021 to stockholders of record as of March 31, 2021.

    The amount of each such distribution is subject to the discretion of the Board of Directors and applicable legal restrictions related to the payment of distributions. The Company calculates each stockholder’s specific distribution amount for the quarter using record and declaration dates. The distributions are payable by the fifth day following each record date.

    As of March 31, 2021 and December 31, 2020, the Company had accrued $15.3 million and $15.5 million, respectively, in stockholder distributions that were unpaid.

Note 13 — Income Tax Information and Distributions to Stockholders

    The Company has elected to be treated for federal income tax purposes as a RIC under the Code. Generally, a RIC is exempt from federal income taxes if it meets certain quarterly asset diversification requirements, annual income tests, and distributes to stockholders its ‘‘investment company taxable income,’’ as defined in the Code, each taxable year. Distributions declared prior to the filing of the previous year's tax return and paid up to one year after the previous tax year can be carried back to the prior tax year for determining the distributions paid in such tax year. The Company intends to make sufficient distributions to maintain its RIC status each year. The Company may also be subject to federal excise taxes of 4%.

    A RIC is limited in its ability to deduct expenses in excess of its “investment company taxable income” (which is, generally, ordinary income plus net realized short-term capital gains in excess of net realized long-term capital losses). If the Company's expenses in a given taxable year exceed gross taxable income (e.g., as the result of large amounts of equity-based compensation), it would incur a net operating loss for that year. However, a RIC is not permitted to carry forward net operating losses to subsequent taxable years and such net operating losses do not pass through to the RIC’s stockholders. In addition, deductible expenses can be used only to offset investment company taxable income, not net capital gain. A RIC may not use any net capital losses (that is, realized capital losses in excess of realized capital gains) to offset the RIC’s investment company taxable income, but may carry forward such net capital losses, and use them to offset capital gains indefinitely. Due to these limits on the deductibility of expenses and net capital losses, the Company may for tax purposes have aggregate taxable income for several taxable years that it is required to distribute and that is taxable to stockholders even if such taxable income is greater than the aggregate net income the Company actually earned during those taxable years. Such required distributions may be made from the Company cash assets or by liquidation of investments, if necessary. The Company may realize gains or losses from such liquidations. In the event the Company realizes net capital gains from such transactions, the Company may make a larger capital gain distribution than it would have made in the absence of such transactions.

    Depending on the level of taxable income earned in a tax year, for excise tax purposes the Company may choose to carry forward taxable income in excess of current year distributions into the next tax year and incur a 4% U.S. federal excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned.

    The Company did not have any uncertain tax positions that met the recognition or measurement criteria of ASC 740-10-25, Income Taxes (“ASC Topic 740”), nor did the Company have any unrecognized tax benefits as of the periods presented herein. The Company's 2019 tax year and 2018, 2017, and 2016 federal tax returns remain subject to examination by the Internal Revenue Service.

76

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

    As of March 31, 2021, the Company had a deferred tax asset of $4.4 million and a deferred tax liability of $(0.9) million. Given the losses generated by certain entities, deferred tax assets have been offset by valuation allowances of $4.4 million. As of December 31, 2020, the Company had a deferred tax asset of $5.0 million and a deferred tax liability of $(0.9) million. Given the losses generated by certain entities, deferred tax assets have been offset by valuation allowances of $5.0 million.

    The deferred tax asset valuation allowance has been determined pursuant to the provisions of ASC Topic 740, including the Company's estimation of future taxable income, if necessary, and is adequate to reduce the total deferred tax asset to an amount that will more likely than not be realized.

77

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Note 14 — Financial Highlights

The following is a schedule of financial highlights for the three months ended March 31, 2021 and 2020 :

			For the three months ended March 31,
			2021						2020
Per share data:
Net asset value, beginning of period			$	6.95					$	7.69
Results of operations (1)
Net investment income			0.13						0.13
Net realized and unrealized gain (loss), net of deferred taxes			0.20						(1.15)
Net increase (decrease) in net assets resulting from operations			0.33						(1.02)
Stockholder distributions (2)
Distributions from net investment income			(0.10)						(0.16)
Net decrease in net assets resulting from stockholder distributions			(0.10)						(0.16)
Capital share transactions
Issuance of common stock (3)			—						(0.04)
Net decrease in net assets resulting from capital share transactions			—						(0.04)
Other (7)			0.01						—
Net asset value, end of period			$	7.19					$	6.47
Shares outstanding at end of period			199,247,868						198,651,991
Total return (4)			4.95		%				(14.13)		%
Ratio/Supplemental data:
Total net assets, end of period			$	1,432,757					$	1,284,809
Ratio of net investment income to average net assets (8)			9.06		%				7.48		%
Ratio of total expenses to average net assets (6) (8)			7.10		%				8.12		%
Portfolio turnover rate (5)			21.80		%				10.19		%

______________

(1)The per share data was derived by using the weighted average shares outstanding during the year.

(2)The per share data for distributions reflects the actual amount of distributions declared per share during the period.

(3)The issuance of common stock on a per share basis reflects the incremental net asset value changes as a result of the issuance of shares of common stock.

(4)Total return is calculated assuming a purchase of shares of common stock at the current net asset value on the first day and a sale at the current net asset value on the last day of the periods reported. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the DRIP.

(5)Portfolio turnover rate is calculated using the lesser of year-to-date purchases or sales over the average of the invested assets at fair value.

(6)Ratio of total expenses to average net assets is calculated using total operating expenses, including income tax expense over average net assets.

(7)Represents the impact of calculating certain per share amounts based on weighted average shares outstanding during the period and certain per share amounts based on shares outstanding as of year end.

(8)Ratios are annualized, except for incentive fees.

78

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Note 15 – Schedules of Investments and Advances to Affiliates

An affiliated company is generally a portfolio company in which BDCA owns 5% or more of its voting securities. A controlled affiliated company is generally a portfolio company in which BDCA owns more than 25% of its voting securities or has the power to exercise control over its management or policies (including through a management agreement.) Transactions related to investments in affiliated and controlled affiliated companies for the three months ended March 31, 2021 were as follows:

Portfolio Company (1)						Type of Asset						Industry						Amount of dividends and interest included in income						Beginning Fair Value at December 31, 2020						Gross additions*						Gross reductions**						Realized Gain/(Loss)						Change in Unrealized Gain (Loss)						Fair Value at March 31, 2021
Control Investments
BDCA Senior Loan Fund, LLC (2) (4) (6)						Equity/Other						Diversified Investment Vehicles						$	5,753					$	—					$	304,934					$	—					$	—					$	—					$	304,934
CRD Holdings, LLC - 9.00% (2) (6)						Equity/Other						Energy						—						14,557						—						(3,550)						—						(957)						10,050
CRS-SPV, Inc. (2) (3) (6)						Equity/Other						Industrials						—						1,393						—						—						—						—						1,393
CRS-SPV, Inc. - L+4.50% (5.50%), 3/8/2022 (2) (6)						Senior Secured First Lien Debt						Industrials						1						62						—						—						—						—						62
Kahala Ireland OpCo Designated Activity Company - L+8.00% (13.00%), 12/22/2028 (2) (6)						Senior Secured First Lien Debt						Transportation						487						18,549						—						(5,000)						—						—						13,549
Kahala Ireland OpCo Designated Activity Company (2) (6)						Equity/Other						Transportation						6,266						42,952						—						—						—						(7,000)						35,952
Kahala Ireland OpCo Designated Activity Company (2) (6)						Equity/Other						Transportation						—						3,250						—						—						—						—						3,250
Kahala US OpCo, LLC - 13.00% (2) (3) (6)						Equity/Other						Transportation						—						—						—						—						—						—						—
KMTEX, LLC - P+3.00% (6.25%) PIK, 6/16/2025 (2) (6)						Senior Secured First Lien Debt						Chemicals						13						829						13						—						—						(231)						611
KMTEX, LLC - P+3.00% (6.25%) PIK, 6/16/2025 (2) (6)						Senior Secured First Lien Debt						Chemicals						50						3,230						50						—						—						(899)						2,381
KMTEX, LLC - P+3.00% (6.25%) PIK, 6/16/2025 (2) (6)						Senior Secured First Lien Debt						Chemicals						5						218						259						—						—						—						477
KMTEX, LLC (2) (3) (6)						Equity/Other						Chemicals						—						—						—						—						—						—						—
KMTEX, LLC (2) (3) (6)						Equity/Other						Chemicals						—						2,289						—						—						—						(2,289)						—
MGTF Holdco, LLC (2) (3) (6)						Equity/Other						Media/Entertainment						—						—						—						—						—						—						—
MGTF Radio Company, LLC - L+6.00% (7.00%), 4/1/2024 (2) (6)						Senior Secured First Lien Debt						Media/Entertainment						971						43,400						8						(375)						1						71						43,105
NMFC Senior Loan Program I, LLC (2) (5)						Equity/Other						Diversified Investment Vehicles						497						—						—						—						—						—						—
Park Ave RE Holdings, LLC - 13.00%, 12/31/2021 (2) (6)						Subordinated Debt						Financials						1,154						37,237						—						(5,000)						—						—						32,237
Park Ave RE Holdings, LLC (2) (3) (6)						Equity/Other						Financials						—						3,300						—						404						—						(404)						3,300
Siena Capital Finance, LLC - 12.50%, 5/15/2024 (2) (6)						Subordinated Debt						Financials						833						25,500						3,000						—						—						—						28,500
Siena Capital Finance, LLC (2) (6)						Equity/Other						Financials						1,318						35,839						—						—						—						3,584						39,423
WPNT, LLC (2) (3) (6)						Equity/Other						Media/Entertainment						—						—						—						—						—						—						—
Total Control Investments																		$	17,348					$	232,605					$	308,264					$	(13,521)					$	1					$	(8,125)					$	519,224
Affiliate Investments
Answers Corp. (3) (6)						Equity/Other						Media/Entertainment						$	—					$	727					$	—					$	(718)					$	—					$	136					$	145

79

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Portfolio Company (1)						Type of Asset						Industry						Amount of dividends and interest included in income						Beginning Fair Value at December 31, 2020						Gross additions*						Gross reductions**						Realized Gain/(Loss)						Change in Unrealized Gain (Loss)						Fair Value at March 31, 2021
Capstone Nutrition Development, LLC (3) (6)						Equity/Other						Consumer						$	—					$	5,928					$	—					$	—					$	—					$	8,825					$	14,753
CDS U.S. Intermediate Holdings, Inc. - L+6.00% (7.00%), 11/24/2025 (6)						Senior Secured First Lien Debt						Media/Entertainment						33						1,940						1,524						(375)						3						76						3,168
CDS U.S. Intermediate Holdings, Inc. - L+8.00% (9.00%) 7.00% PIK, 11/24/2027 (6)						Senior Secured Second Lien Debt						Media/Entertainment						43						1,104						265						—						—						146						1,515
CDS U.S. Intermediate Holdings, Inc. (3) (6)						Equity/Other						Media/Entertainment						—						1,224						—						—						—						2,797						4,021
CDS U.S. Intermediate Holdings, Inc. (3) (6)						Equity/Other						Media/Entertainment						—						437						—						—						—						874						1,311
Danish CRJ, Ltd. (3) (6)						Equity/Other						Transportation						—						—						—						—						—						—						—
First Eagle Greenway Fund II, LLC						Equity/Other						Diversified Investment Vehicles						52						1,759						—						—						—						52						1,811
Foresight Energy Operating, LLC - L+8.00% (9.50%), 6/30/2027 (6)						Senior Secured First Lien Debt						Energy						31						1,354						—						(3)						—						—						1,351
Foresight Energy Operating, LLC (3) (6)						Equity/Other						Energy						—						2,520						—						—						—						1,209						3,729
Internap Corp. - L+6.50% (7.50%) 5.50% PIK, 5/8/2025 (6)						Senior Secured First Lien Debt						Business Services						113						5,181						83						—						—						(11)						5,253
Internap Corp (3) (6)						Equity/Other						Business Services						—						2,231						—						—						—						—						2,231
Jakks Pacific, Inc. - 10.50%, 2.50% PIK, 2/9/2023 (6)						Senior Secured First Lien Debt						Consumer						795						17,104						1,465						—						—						(54)						18,515
Jakks Pacific, Inc. - 6.00%, 2.75% PIK, 7/3/2023 (6)						Subordinated Debt						Consumer						27						—						1,448						—						—						—						1,448
Jakks Pacific, Inc. (3) (6)						Equity/Other						Consumer						—						402						3						—						—						261						666
Jakks Pacific, Inc. (3)						Equity/Other						Consumer						—						49						—						—						—						21						70
LendingHome Corp. - 8.00% (5) (6)						Equity/Other						Financials						—						59,823						—						(59,477)						(346)						—						—
MidOcean Credit CLO 2013-2A INC - 0.00%, 1/29/2030 (6)						Collateralized Securities						Diversified Investment Vehicles						—						6,313						—						—						—						1,210						7,523
NewStar Arlington Senior Loan Program, LLC 14-1A SUB - 20.15%, 4/25/2031 (6)						Collateralized Securities						Diversified Investment Vehicles						966						15,631						—						(926)						—						2,111						16,816
NewStar Arlington Senior Loan Program, LLC 14-1A FR - L+11.00% (11.22%), 4/25/2031 (6)						Collateralized Securities						Diversified Investment Vehicles						138						3,632						5						—						—						198						3,835
Newstar Fairfield Fund CLO, Ltd. 2015-1RA F - L+7.50% (7.72%), 1/20/2027 (6)						Collateralized Securities						Diversified Investment Vehicles						286						5,459						79						—						—						595						6,133
Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB - 0.00%, 1/20/2027 (6)						Collateralized Securities						Diversified Investment Vehicles						—						—						—						—						—						—						—
PCX Aerostructures, LLC - 6.00%, 8/9/2021 (6)						Subordinated Debt						Industrials						642						9,859						523						—						—						(362)						10,020
PCX Aerostructures, LLC (3) (6)						Equity/Other						Industrials						—						76						—						—						—						2,229						2,305
PCX Aerostructures, LLC (3) (6)						Equity/Other						Industrials						—						535						—						—						—						71						606
PCX Aerostructures, LLC (3) (6)						Equity/Other						Industrials						—						—						—						—						—						—						—
PennantPark Credit Opportunities Fund II, LP						Equity/Other						Diversified Investment Vehicles						153						9,274						—						—						—						120						9,394
Tap Rock Resources, LLC (6)						Equity/Other						Energy						347						11,405						—						(907)						—						(35)						10,463
Tax Defense Network, LLC - L+6.00% (10.00%) PIK, 9/30/2021 (6)						Senior Secured First Lien Debt						Consumer						—						420						—						—						—						11						431

80

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Portfolio Company (1)						Type of Asset						Industry						Amount of dividends and interest included in income						Beginning Fair Value at December 31, 2020						Gross additions*						Gross reductions**						Realized Gain/(Loss)						Change in Unrealized Gain (Loss)						Fair Value at March 31, 2021
Tax Defense Network, LLC - L+6.00% (10.00%) PIK, 9/30/2021 (6)						Senior Secured First Lien Debt						Consumer						$	—					$	2,368					$	—					$	—					$	—					$	58					$	2,426
Tax Defense Network, LLC - 10.00% PIK, 9/30/2021 (6)						Senior Secured First Lien Debt						Consumer						—						3,311						—						—						—						86						3,397
Tax Defense Network, LLC (3) (6)						Equity/Other						Consumer						—						—						—						—						—						—						—
Tax Defense Network, LLC (3) (6)						Equity/Other						Consumer						—						—						—						—						—						—						—
Team Waste, LLC (6)						Equity/Other						Industrials						—						2,570						—						—						—						111						2,681
Tennenbaum Waterman Fund, LP						Equity/Other						Diversified Investment Vehicles						326						10,087						—						—						—						(85)						10,002
TwentyEighty, Inc. (3) (5) (6)						Equity/Other						Business Services						—						—						—						(36)						36						—						—
Vantage Mobility International, LLC- L+6.00% (7.00%) PIK, 9/9/2021 (6)						Senior Secured Second Lien Debt						Transportation						—						944						—						—						—						16						960
Vantage Mobility International, LLC (3) (6)						Equity/Other						Transportation						—						—						—						—						—						—						—
Vantage Mobility International, LLC (3) (6)						Equity/Other						Transportation						—						—						—						—						—						—						—
Vantage Mobility International, LLC (3) (6)						Equity/Other						Transportation						—						—						—						—						—						—						—
Whitehorse, Ltd. 2014-1A SUB - 0.00%, 5/1/2026 (6)						Collateralized Securities						Diversified Investment Vehicles						—						—						—						—						—						—						—
Whitehorse, Ltd. 2014-1A Side Letter - 0.00%, 5/1/2026 (6)						Collateralized Securities						Diversified Investment Vehicles						—						—						—						—						—						—						—
Whitehorse, Ltd. 2014-1A E - L+4.55% (4.76%), 5/1/2026 (6)						Collateralized Securities						Diversified Investment Vehicles						106						5,592						11						—						—						445						6,048
Total Affiliate Investments																		$	4,058					$	189,259					$	5,406					$	(62,442)					$	(307)					$	21,111					$	153,027
Total Control & Affiliate Investments																		$	21,406					$	421,864					$	313,670					$	(75,963)					$	(306)					$	12,986					$	672,251

______________________________________________________

*     Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities, and the movement of an existing portfolio company into this category from a different category.

**     Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities, and the movement of an existing portfolio company out of this category into a different category.

(1)The principal amount and ownership detail are shown in the consolidated schedules of investments.

(2)This investment was not deemed significant under Regulation S-X as of March 31, 2021.

(3)Investment is non-income producing at March 31, 2021.

(4)BDCA and CCLF are the members of BDCA Senior Loan Fund, LLC, a joint venture formed as a Delaware limited liability company that is not consolidated by either member for financial reporting purposes. The members make investments in SLF in the form of LLC equity interests as SLF makes investments, and all portfolio and other material decisions regarding SLF must be submitted to SLF’s board of directors which is comprised of an equal number of members appointed by each of BDCA and CCLF. Because management of SLF is shared equally between us and CCLF, we do not believe we control the SLF for purposes of the 1940 Act or otherwise.

(5)Investment no longer held as of March 31, 2021.

81

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

(6)The fair value of investments with respect to securities for which market quotations are not readily available is determined in good faith by the Company's Board of Directors as required by the 1940 Act. Such investments are valued using significant unobservable inputs (See Note 3 to the consolidated financial statements).

    Dividends and interest for the three months ended March 31, 2021 attributable to Controlled and Affiliated investments no longer held as of March 31, 2021 were $0.5 million.

    Realized loss for the three months ended March 31, 2021 attributable to Controlled and Affiliated investments no longer held as of March 31, 2021 was $(0.3) million.

    Change in unrealized gain for the three months ended March 31, 2021 attributable to Controlled and Affiliated investments no longer held as of March 31, 2021 was $0.0 million.

    The following table presents the Schedule of Investments and Advances to Affiliates as of December 31, 2020:

Portfolio Company (1)						Type of Asset						Industry						Amount of dividends and interest included in income						Beginning Fair Value at December 31, 2019						Gross additions*						Gross reductions**						Realized Gain/(Loss)						Change in Unrealized Gain (Loss) (4)						Fair Value at December 31, 2020
Control Investments
Capstone Nutrition (fka Integrity Nutraceuticals) - L+12.50% (15.08%), 9/25/2020 (2) (5) (6)						Senior Secured First Lien Debt						Consumer						$	—					$	—					$	504					$	—					$	(504)					$	—					$	—
CRD Holdings, LLC - 9.00% (2) (6)						Equity/Other						Energy						2,071						28,943						—						(14,295)						—						(91)						14,557
CRS-SPV, Inc. (2) (3) (6)						Equity/Other						Industrials						—						2,221						—						—						—						(828)						1,393
CRS-SPV, Inc. - L+4.50% (5.50%), 3/8/2021 (2) (6)						Senior Secured First Lien Debt						Industrials						4						62						—						—						—						—						62
Kahala Ireland OpCo Designated Activity Company - L+8.00% (13.00%), 12/22/2028 (2) (6)						Senior Secured First Lien Debt						Transportation						7,061						105,549						—						(87,000)						—						—						18,549
Kahala Ireland OpCo Designated Activity Company (2) (3) (6)						Equity/Other						Transportation						—						57,226						—						—						—						(14,274)						42,952
Kahala Ireland OpCo Designated Activity Company (2) (6)						Equity/Other						Transportation						5,945						3,250						2						(2,797)						—						2,795						3,250
Kahala US OpCo, LLC - 13.00% (2) (3) (6)						Equity/Other						Transportation						—						—						—						—						—						—						—
KMTEX, LLC - P+3.00% (6.25%) PIK, 6/16/2025 (2) (6)						Senior Secured First Lien Debt						Chemicals						26						—						829						—						—						—						829
KMTEX, LLC - P+3.00% (6.25%) PIK, 6/16/2025 (2) (6)						Senior Secured First Lien Debt						Chemicals						119						—						3,230						—						—						—						3,230
KMTEX, LLC - P+3.00% (6.25%) PIK, 6/16/2025 (2) (6)						Senior Secured First Lien Debt						Chemicals						4						—						218						—						—						—						218
KMTEX, LLC (2) (3) (6)						Equity/Other						Chemicals						—						—						—						—						—						—						—
KMTEX, LLC (2) (3) (6)						Equity/Other						Chemicals						—						—						2,793						—						—						(504)						2,289
MGTF Holdco, LLC (2) (3) (6)						Equity/Other						Media/Entertainment						—						—						—						—						—						—						—
MGTF Radio Company, LLC - L+6.00% (7.00%), 4/1/2024 (2) (6)						Senior Secured First Lien Debt						Media/Entertainment						4,115						54,171						33						(2,827)						5						(7,982)						43,400
NexSteppe, Inc. (2) (3) (5) (6)						Equity/Other						Chemicals						—						—						—						—						(737)						737						—
NexSteppe, Inc. - 12.00%, 9/30/2020 (2) (5) (6)						Senior Secured First Lien Debt						Chemicals						—						—						—						—						(1,750)						1,750						—
NexSteppe, Inc. - 12.00%, 9/30/2020 (2) (5) (6)						Senior Secured First Lien Debt						Chemicals						—						—						—						(378)						(10,075)						10,453						—
NMFC Senior Loan Program I, LLC (2) (5)						Equity/Other						Diversified Investment Vehicles						5,344						47,310						—						(44,411)						(5,589)						2,690						—

82

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Portfolio Company (1)						Type of Asset						Industry						Amount of dividends and interest included in income						Beginning Fair Value at December 31, 2019						Gross additions*						Gross reductions**						Realized Gain/(Loss)						Change in Unrealized Gain (Loss) (4)						Fair Value at December 31, 2020
Park Ave RE Holdings, LLC - 13.00%, 12/31/2021 (2) (6)						Subordinated Debt						Financials						$	4,963					$	37,237					$	1,237					$	(1,237)					$	—					$	—					$	37,237
Park Ave RE Holdings, LLC (2) (3) (6)						Equity/Other						Financials						—						11,133						—						(427)						—						(7,406)						3,300
Siena Capital Finance, LLC - 12.50%, 5/15/2024 (2) (6)						Subordinated Debt						Financials						3,232						22,500						3,001						—						—						(1)						25,500
Siena Capital Finance, LLC (2) (6)						Equity/Other						Financials						5,091						36,915						10						—						—						(1,086)						35,839
WPNT, LLC (2) (3) (6)						Equity/Other						Media/Entertainment						—						—						—						—						—						—						—
Total Control Investments																		$	37,975					$	406,517					$	11,857					$	(153,372)					$	(18,650)					$	(13,747)					$	232,605
Affiliate Investments
Answers Corp. (3) (6)						Equity/Other						Media/Entertainment						$	—					$	727					$	—					$	—					$	—					$	—					$	727
Capstone Nutrition Development, LLC (3) (6)						Equity/Other						Consumer						—						4,788						—						(320)						—						1,460						5,928
CDS U.S. Intermediate Holdings, Inc. - L+6.00% (7.00%), 11/24/2025 (6)						Senior Secured First Lien Debt						Media/Entertainment						18						—						1,941						—						—						(1)						1,940
CDS U.S. Intermediate Holdings, Inc. - L+8.00% (9.00%) 7.00% PIK, 11/24/2027 (6)						Senior Secured Second Lien Debt						Media/Entertainment						—						—						1,104						—						—						—						1,104
CDS U.S. Intermediate Holdings, Inc. (3) (6)						Equity/Other						Media/Entertainment						—						—						1,224						—						—						—						1,224
CDS U.S. Intermediate Holdings, Inc. (3) (6)						Equity/Other						Media/Entertainment						—						—						437						—						—						—						437
Danish CRJ, Ltd. (3) (6)						Equity/Other						Transportation						—						—						—						—						—						—						—
First Eagle Greenway Fund II, LLC						Equity/Other						Diversified Investment Vehicles						(8)						2,554						326						(46)						—						(1,075)						1,759
Foresight Energy Operating, LLC - L+8.00% (9.50%), 6/30/2027 (6)						Senior Secured First Lien Debt						Energy						65						—						1,333						(7)						—						28						1,354
Foresight Energy Operating, LLC - L+8.00% (9.50%), 6/30/2027 (5) (6)						Senior Secured First Lien Debt						Energy						4						—						977						(989)						12						—						—
Foresight Energy Operating, LLC (3) (6)						Equity/Other						Energy						—						—						2,087						—						—						433						2,520
Internap Corp. - L+10.00% (11.00%), 5/8/2023 (5)						Senior Secured First Lien Debt						Business Services						175						—						2,569						(2,719)						150						—						—
Internap Corp. - L+6.50% (7.50%) 5.50% PIK, 5/8/2025 (6)						Senior Secured First Lien Debt						Business Services						291						—						5,956						—						—						(775)						5,181
Internap Corp (3) (6)						Equity/Other						Business Services						—						—						544						—						—						1,687						2,231
Jakks Pacific, Inc. - 10.50%, 2.50% PIK, 2/9/2023 (6)						Senior Secured First Lien Debt						Consumer						80						—						16,329						(256)						24						1,007						17,104
Jakks Pacific, Inc. (3) (6)						Equity/Other						Consumer						—						—						101						—						—						301						402
Jakks Pacific, Inc. (3)						Equity/Other						Consumer						—						—						40						—						—						9						49
LendingHome Corp. - 8.00% (6)						Equity/Other						Financials						346						—						59,823						—						—						—						59,823
MidOcean Credit CLO 2013-2A INC - 0.00%, 1/29/2030 (6)						Collateralized Securities						Diversified Investment Vehicles						(22)						11,835						—						(986)						—						(4,536)						6,313
Mood Media Corp. - L+9.25% (10.25%), 7/31/2025 (5) (6)						Senior Secured First Lien Debt						Media/Entertainment						463						—						9,242						(9,519)						277						—						—
Mood Media Corp. - L+9.25% (10.25%), 7/31/2025 (5) (6)						Senior Secured First Lien Debt						Media/Entertainment						26						—						1,881						(1,962)						81						—						—
Mood Media Corp. (5) (6)						Equity/Other						Media/Entertainment						—						—						2,713						(4,085)						1,372						—						—

83

---

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Portfolio Company (1)						Type of Asset						Industry						Amount of dividends and interest included in income						Beginning Fair Value at December 31, 2019						Gross additions*						Gross reductions**						Realized Gain/(Loss)						Change in Unrealized Gain (Loss) (4)						Fair Value at December 31, 2020
NewStar Arlington Senior Loan Program, LLC 14-1A SUB - 18.63%, 4/25/2031 (6)						Collateralized Securities						Diversified Investment Vehicles						$	1,637					$	19,697					$	—					$	(309)					$	—					$	(3,757)					$	15,631
NewStar Arlington Senior Loan Program, LLC 14-1A FR - L+11.00% (11.21%), 4/25/2031 (6)						Collateralized Securities						Diversified Investment Vehicles						607						4,612						17						—						—						(997)						3,632
Newstar Fairfield Fund CLO, Ltd. 2015-1RA F - L+7.50% (7.72%), 1/20/2027 (6)						Collateralized Securities						Diversified Investment Vehicles						97						9,209						41						—						—						(3,791)						5,459
Newstar Fairfield Fund CLO, Ltd. 2015-1RA SUB - 0.00%, 1/20/2027 (6)						Collateralized Securities						Diversified Investment Vehicles						(318)						6,607						—						(1,012)						—						(5,595)						—
PCX Aerostructures, LLC - 6.00%, 8/9/2021 (6)						Subordinated Debt						Industrials						1,018						5,908						653						(2)						—						3,300						9,859
PCX Aerostructures, LLC (3) (6)						Equity/Other						Industrials						—						—						—						—						—						76						76
PCX Aerostructures, LLC (3) (6)						Equity/Other						Industrials						—						—						—						—						—						535						535
PCX Aerostructures, LLC (3) (6)						Equity/Other						Industrials						—						—						—						—						—						—						—
PennantPark Credit Opportunities Fund II, LP						Equity/Other						Diversified Investment Vehicles						645						8,707						—						(606)						—						1,173						9,274
Tap Rock Resources, LLC (6)						Equity/Other						Energy						1,231						20,879						3,886						(14,773)						187						1,226						11,405
Tax Defense Network, LLC - L+6.00% (10.00%) PIK, 9/30/2021 (6)						Senior Secured First Lien Debt						Consumer						—						1,262						—						—						—						(842)						420
Tax Defense Network, LLC - L+6.00% (10.00%) PIK, 9/30/2021 (6)						Senior Secured First Lien Debt						Consumer						—						7,108						—						—						—						(4,740)						2,368
Tax Defense Network, LLC - 10.00% PIK, 9/30/2021 (6)						Senior Secured First Lien Debt						Consumer						—						2,357						628						—						—						326						3,311
Tax Defense Network, LLC (3) (6)						Equity/Other						Consumer						—						—						—						—						—						—						—
Tax Defense Network, LLC (3) (6)						Equity/Other						Consumer						—						—						—						—						—						—						—
Team Waste, LLC (6)						Equity/Other						Industrials						84						2,235						335						—						—						—						2,570
Tennenbaum Waterman Fund, LP						Equity/Other						Diversified Investment Vehicles						1,178						9,841						—						—						—						246						10,087
TwentyEighty, Inc. (3) (5) (6)						Equity/Other						Business Services						—						—						—						(369)						369						—						—
Vantage Mobility International, LLC - L+6.00% (7.00%), 6/30/2023 (5) (6)						Senior Secured First Lien Debt						Transportation						—						—						196						(172)						(24)						—						—
Vantage Mobility International, LLC - L+6.00% (7.00%) PIK, 9/9/2021 (6)						Senior Secured Second Lien Debt						Transportation						—						2,883						172						—						—						(2,111)						944
Vantage Mobility International, LLC - L+7.75% (10.26%), 9/1/2021 (5) (6)						Subordinated Debt						Transportation						26						—						—						—						—						—						—
Vantage Mobility International, LLC (3) (6)						Equity/Other						Transportation						—						942						—						—						—						(942)						—
Vantage Mobility International, LLC (3) (6)						Equity/Other						Transportation						—						—						—						—						—						—						—
Vantage Mobility International, LLC (3) (6)						Equity/Other						Transportation						—						—						—						—						—						—						—
Whitehorse, Ltd. 2014-1A SUB - 0.00%, 5/1/2026 (6)						Collateralized Securities						Diversified Investment Vehicles						—						286						—						—						—						(286)						—
Whitehorse, Ltd. 2014-1A Side Letter - 0.00%, 5/1/2026 (6)						Collateralized Securities						Diversified Investment Vehicles						(2)						35						—						—						—						(35)						—

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BUSINESS DEVELOPMENT CORPORATION OF AMERICA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts, percentages and as otherwise indicated)

For the period ended March 31, 2021

(Unaudited)

Portfolio Company (1)						Type of Asset						Industry						Amount of dividends and interest included in income						Beginning Fair Value at December 31, 2019						Gross additions*						Gross reductions**						Realized Gain/(Loss)						Change in Unrealized Gain (Loss) (4)						Fair Value at December 31, 2020
Whitehorse, Ltd. 2014-1A E - L+4.55% (4.76%), 5/1/2026 (6)						Collateralized Securities						Diversified Investment Vehicles						$	578					$	7,054					$	137					$	—					$	—					$	(1,599)					$	5,592
Total Affiliate Investments																		$	8,219					$	129,526					$	114,692					$	(38,132)					$	2,448					$	(19,275)					$	189,259
Total Control & Affiliate Investments																		$	46,194					$	536,043					$	126,549					$	(191,504)					$	(16,202)					$	(33,022)					$	421,864

_____________________________________________________

*     Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities, and the movement of an existing portfolio company into this category from a different category.

**     Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities, and the movement of an existing portfolio company out of this category into a different category.

(1)The principal amount and ownership detail are shown in the consolidated schedules of investments.

(2)This investment was not deemed significant under Regulation S-X as of December 31, 2020.

(3)Investment is non-income producing at December 31, 2020.

(4)Gross of net change in deferred taxes in the amount of $2.3 million.

(5)Investment no longer held as of December 31, 2020.

(6)The fair value of investments with respect to securities for which market quotations are not readily available is determined in good faith by the Company's Board of Directors as required by the 1940 Act. Such investments are valued using significant unobservable inputs (See Note 3 to the consolidated financial statements).

    Dividends and interest for the year ended December 31, 2020 attributable to Controlled and Affiliated investments no longer held as of December 31, 2020 were $6.0 million.

    Realized loss for the year ended December 31, 2020 attributable to Controlled and Affiliated investments no longer held as of December 31, 2020 was $(16.4) million.

    Change in unrealized gain for the year ended December 31, 2020 attributable to Controlled and Affiliated investments no longer held as of December 31, 2020 was $15.6 million.

Note 16 – Subsequent Events

The Company has evaluated subsequent events through the filing of this Form 10-Q and has determined that there have been no events that have occurred that would require adjustments to the Company’s disclosures in the consolidated financial statements.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

    The following discussion and analysis should be read in conjunction with the accompanying consolidated financial statements of Business Development Corporation of America (the "Company," "BDCA," "we," or "our") and the notes thereto and other financial information included elsewhere in this Quarterly Report on Form 10-Q. We are externally managed by our adviser, BDCA Adviser, LLC (the “Adviser”).

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. 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 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 disclosed in our U.S. Securities and Exchange Commission (“SEC”) reports and those identified elsewhere in this report, including the “Risk Factors” section, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance:

•our future operating results;

•the impact of the COVID-19 pandemic on our business and our portfolio companies, including our and their ability to access capital and liquidity;

•changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets, including the effect of the current COVID-19 pandemic;

•the impact that the discontinuation of LIBOR and the transition to new reference rates could have on the value of our LIBOR-indexed portfolio investments and the cost of borrowing under our credit facilities;

•the impact of the investments that we expect to make;

•the ability of our portfolio companies to achieve their objectives;

•our contractual arrangements and relationships with third parties;

•our expected financings and investments;

•the adequacy of our cash resources and working capital;

•the timing of cash flows, if any, from the operations of our portfolio companies;

•our repurchase of shares;

•actual and potential conflicts of interest with our Adviser and its affiliates;

•the dependence of our future success on the general economy and its effect on the industries in which we invest;

•the ability to qualify and maintain our qualifications as a regulated investment company (“RIC”) and a business development company (“BDC”);

•the timing, form, and amount of any distributions;

•the impact of fluctuations in interest rates on our business;

•the valuation of any investments in portfolio companies, particularly those having no liquid trading market;

•the impact of changes to generally accepted accounting principles, and the impact to BDCA; and

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

Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Item 1A. Risk Factors” and elsewhere in this Quarterly Report.    

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Overview

    We are an externally managed, non-diversified closed-end management investment company incorporated in Maryland in May 2010 that has elected to be regulated as a BDC under the Investment Company Act of 1940, as amended (“the 1940 Act”). In addition, we have elected to be treated for tax purposes as a RIC under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). Our investment activities are managed by the Adviser, a subsidiary of Benefit Street Partners L.L.C. (“BSP”) and supervised by our Board of Directors, a majority of whom are independent of the Adviser and its affiliates. As a BDC, we are required to comply with certain regulatory requirements.

    Our investment objective is to generate both current income and to a lesser extent long-term capital appreciation through debt and equity investments. We invest primarily in senior secured loans, and to a lesser extent, mezzanine loans, unsecured loans, and equity of predominantly private U.S. middle-market companies. We define middle market companies as those with annual revenues of less than $1 billion, although we may invest in larger or smaller companies. We may also purchase interests in loans or corporate bonds through secondary market transactions. We expect that each investment generally will range between approximately 0.5% and 3.0% of our total assets. As of March 31, 2021, 74.1% of our portfolio was invested in senior secured loans.

    Senior secured loans generally are senior debt instruments that rank ahead of subordinated debt and equity in priority of payments and are generally secured by liens on the operating assets of a borrower which may include inventory, receivables, plant, property, and equipment. Mezzanine debt is subordinated to senior loans and is generally unsecured. We may also invest in the equity and junior debt tranches of collateralized loan obligation investment vehicles (“Collateralized Securities” or “CLO's”).

Financial and Operating Highlights

(Dollars in millions, except per share amounts)
At March 31, 2021:
			Investment Portfolio			$	2,339.7
			Net assets			1,432.8
			Debt (net of deferred financing costs)			886.7
			Net asset value per share			7.19
Portfolio Activity for the Three Months Ended March 31, 2021:
			Purchases during the period			540.9
			Sales, repayments, and other exits during the period			870.5
			Number of portfolio companies at end of period			179
Operating results for the Three Months Ended March 31, 2021:
			Net investment income per share			0.13
			Distributions declared per share			0.10
			Net increase in net assets resulting from operations per share			0.33
			Net investment income			26.6
			Net realized and unrealized gain, net of change in deferred taxes			40.4
			Net increase in net assets resulting from operations			67.0

Portfolio and Investment Activity

    During the three months ended March 31, 2021, we made $540.9 million of investments in new and existing portfolio companies and had $870.5 million in aggregate amount of sales and repayments, resulting in a net decrease in investments of $329.6 million for the period. The total portfolio of debt investments at fair value consisted of 88.8% bearing variable interest rates and 11.2% bearing fixed interest rates.

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    Our portfolio composition, based on fair value at March 31, 2021 was as follows:

			March 31, 2021
			Percentage of Total Portfolio						Weighted Average Current Yield for Total Portfolio (1)
Senior Secured First Lien Debt			63.4		%				7.5		%
Senior Secured Second Lien Debt			10.7						9.1
Subordinated Debt			3.7						13.5
Collateralized Securities (2)			1.7						13.3
Equity/Other (3)			7.5						16.8
BDCA Senior Loan Fund, LLC (3)			13.0						8.0
Total			100.0		%				8.8		%

______________

(1) Includes the effect of the amortization or accretion of loan premiums or discounts.

(2) Weighted average current yield for Collateralized Securities is based on the estimation of effective yield to expected maturity for each security as calculated in accordance with Accounting Standards Codification ("ASC") Topic 325-40-35, Beneficial Interests in Securitized Financial Assets (see Note 2 - Summary of Significant Accounting Policies).

(3) Weighted average current yield may be based on actual or annualized income, where applicable.

    During the year ended December 31, 2020, we made $1,082.5 million of investments in new and existing portfolio companies and had $891.7 million in aggregate amount of sales and repayments, resulting in net investments of $190.8 million for the period. The total portfolio of debt investments at fair value consisted of 91.3% bearing variable interest rates and 8.7% bearing fixed interest rates.

    Our portfolio composition, based on fair value at December 31, 2020 was as follows:

			December 31, 2020
			Percentage of Total Portfolio						Weighted Average Current Yield for Total Portfolio (1)
Senior Secured First Lien Debt			73.5		%				7.1		%
Senior Secured Second Lien Debt			9.1						9.4
Subordinated Debt			4.5						12.3
Collateralized Securities (2)			4.1						9.6
Equity/Other (3)			8.8						14.8
Total			100.0		%				8.3		%

______________

(1) Includes the effect of the amortization or accretion of loan premiums or discounts.

(2) Weighted average current yield for Collateralized Securities is based on the estimation of effective yield to expected maturity for each security as calculated in accordance with ASC Topic 325-40-35, Beneficial Interests in Securitized Financial Assets (see Note 2 - Summary of Significant Accounting Policies).

(3) Weighted average current yield for Equity/Other may be based on actual or annualized income, where applicable.

Portfolio Asset Quality

    Our Adviser employs an investment rating system to categorize our investments. In addition to various risk management and monitoring tools, our Adviser grades the credit risk of all debt investments on a scale of 1 to 5 no less frequently than quarterly. This system is intended primarily to reflect the underlying risk of a portfolio debt investment relative to the inherent risk at the time the original debt investment was made (i.e., at the time of acquisition), although it may also take into account under certain circumstances the performance of the portfolio company's business, the collateral coverage of the investment and other relevant factors.

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Loan Rating						Summary Description
1						Debt investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since the time of investment are favorable.
2						Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable. All investments are initially rated a “2”.
3						Performing debt investment requiring closer monitoring. Trends and risk factors show some deterioration.
4						Underperforming debt investment. Some loss of interest or dividend expected, but still expecting a positive return on investment. Trends and risk factors are negative.
5						Underperforming debt investment with expected loss of interest and some principal.

    The weighted average risk rating of our investments based on fair value was 2.21 and 2.33 as of March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021, we had six portfolio companies on non-accrual with a total amortized cost of $84.4 million and fair value of $42.0 million, which represented 3.5% and 1.8% of the investment portfolio's total amortized cost and fair value, respectively. As of December 31, 2020, we had eleven portfolio companies on non-accrual with a total amortized cost of $104.1 million and fair value of $55.4 million, which represented 3.8%, and 2.1% of the investment portfolio's total amortized cost and fair value, respectively. Refer to Note 2 - Summary of Significant Accounting Policies - in our consolidated financial statements included in this report for additional details regarding our non-accrual policy.

RESULTS OF OPERATIONS

    Operating results for the three months ended March 31, 2021 and 2020 were as follows (dollars in thousands):

			For the three months ended March 31,
			2021						2020
Total investment income			$	56,434					$	53,281
Total expenses			29,116						27,249
Income tax expense, including excise tax			700						474
Net investment income			$	26,618					$	25,558

Investment Income

    For the three months ended March 31, 2021, total investment income was $56.4 million and was primarily attributable to interest income from investments in portfolio companies with an average portfolio fair value of $2.5 billion and a weighted average current yield of 8.8%. Included within total investment income was $1.0 million of fee income for the three months ended March 31, 2021. Fee income consists primarily of prepayment and amendment fees. For the three months ended March 31, 2020 total investment income was $53.3 million and was primarily attributable to interest income from investments in portfolio companies with an average portfolio fair value of $2.5 billion and a weighted average current yield of 8.4%. Included within total investment income was $1.1 million of fee income for the three months ended March 31, 2020. Fee income consists primarily of prepayment and amendment fees.

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Operating Expenses

    The composition of our operating expenses for the three months ended March 31, 2021 and 2020 was as follows (dollars in thousands):

			For the three months ended March 31,
			2021						2020
Management fees			$	9,574					$	9,877
Incentive fee on income			6,655						—
Interest and debt fees			9,600						13,780
Professional fees			1,279						1,411
Other general and administrative			1,601						1,586
Administrative services			181						334
Directors' fees			226						261
Total operating expenses			$	29,116					$	27,249

    For the three months ended March 31, 2021 and 2020, we incurred management fees of $9.6 million and $9.9 million, respectively. For the three months ended March 31, 2021 and 2020, we incurred incentive fees on income of $6.7 million, and $0.0 million, respectively.

    For the three months ended March 31, 2021 and 2020, we incurred interest and debt fees of $9.6 million and $13.8 million, respectively. Interest and debt fees are comprised of interest expense, non-usage fees, trustee fees, amortization of deferred financing costs, and amortization of discount if applicable related to our revolving credit facilities and unsecured notes, each as defined herein in the section entitled "Borrowings". The decrease in interest and debt fees for the three months ended March 31, 2021 as compared to the same period in 2020 is primarily the result of the transfer of the Citi Credit Facility to the SLF as well as the redemption of our 2020 Notes.

Net Realized Gain (Loss) and Net Change in Unrealized Appreciation (Depreciation) on Investments, Foreign Currency Transactions, and Forward Currency Exchange Contracts

    Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments and foreign currency transactions, net of change in deferred taxes for the three months ended March 31, 2021 and 2020 were as follows (dollars in thousands):

			For the three months ended March 31,
			2021						2020
Net realized gain (loss)
Control investments			$	1					$	(500)
Affiliate investments			(307)						189
Non-affiliate investments			(443)						(13,342)
Net realized loss on foreign currency transactions			(528)						(332)
Net realized loss on extinguishment of debt			(1,286)						—
Total net realized loss			(2,563)						(13,985)
Net change in unrealized appreciation (depreciation) on investments
Control investments			(8,125)						(17,605)
Affiliate investments			21,111						(28,639)
Non-affiliate investments			29,645						(161,453)
Net change in deferred taxes			—						714
Total net change in unrealized appreciation (depreciation) on investments, net of change in deferred taxes			42,631						(206,983)
Net change in unrealized appreciation from forward currency exchange contracts			293						1,691
Net realized and unrealized gain (loss)			$	40,361					$	(219,277)

    Net realized and unrealized gain (loss) on investments and foreign currency transactions, net of change in deferred taxes, resulted in a net gain of $40.4 million for the three months ended March 31, 2021 compared to net losses of $(219.3) million, respectively, for the same period in 2020. We look at net realized gain (loss) and change in unrealized appreciation (depreciation) together, as movement in unrealized appreciation or depreciation can be the result of realizations.

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    The net realized and unrealized gain for the three months ended March 31, 2021 was primarily driven by unrealized gains on Senior Secured Investments and Equity Investments.

The net realized and unrealized loss for the three months ended March 31, 2020 was primarily driven by realized losses on Senior Secured Investment sales as well as unrealized losses on Senior Secured Investments, Collateralized Securities, and Equity Investments.

Changes in Net Assets from Operations

    For the three months ended March 31, 2021, we recorded a net increase in net assets resulting from operations of $67.0 million versus a net decrease in net assets resulting from operations of $(193.7) million for the three months ended March 31, 2020. The increase is primarily driven by an increase in realized and unrealized gain on our investments. Based on the weighted average shares of common stock outstanding for the years ended March 31, 2021 and 2020, respectively, our per share net increase in net assets resulting from operations was $0.33 for the three months ended March 31, 2021, versus a net decrease in net assets from operations of $(1.02) for the three months ended March 31, 2020.

Cash Flows

For the three months ended March 31, 2021, net cash used in operating activities was $82.8 million. The level of cash flows used in or provided by operating activities is affected by the timing of purchases, redemptions, and sales of portfolio investments. The increase in cash flows used in operating activities for the three months ended March 31, 2021 was primarily a result of purchases of investments of $221.1 million as well as payable for unsettled trades of $126.5 million, partially offset by sales and repayments of $206.3 million.

Net cash provided by financing activities of $90.2 million during the three months ended March 31, 2021 primarily related to proceeds from debt of $498.0 million, partially offset by payments on debt of $373.1 million.

For the three months ended March 31, 2020, net cash used in operating activities was $14.3 million. The level of cash flows used in or provided by operating activities is affected by the timing of purchases, redemptions, and sales of portfolio investments. The decrease in cash flows used in operating activities for the three months ended March 31, 2020 was primarily a result of sales and repayments of investments of $250.8 million, offset by purchases of investments of $301.5 million.

Net cash provided by financing activities of $130.8 million during the three months ended March 31, 2020 primarily related to proceeds from debt of $197.0 million, which was partially offset by repurchases of common stock of $16.5 million, payments of stockholder distributions of $22.7 million, and payments on debt of $27.0 million.

BDCA Senior Loan Fund, LLC

On January 20, 2020, BDCA and Cliffwater Corporate Lending Fund (“CCLF”) formed a joint venture, BDCA Senior Loan Fund, LLC (the “SLF”), that invests primarily in senior secured loans, and to a lesser extent may invest in mezzanine loans, unsecured loans and equity of predominantly private U.S. middle-market companies. BDCA Senior Loan Fund, LLC was formed as a Delaware limited liability company and is not consolidated by either BDCA or CCLF for financial reporting purposes. BDCA provides capital to the SLF in the form of LLC equity interests. As of March 31, 2021, BDCA and CCLF owned 87.5% and 12.5%, respectively, of the LLC equity interests of SLF. BDCA and CCLF each appoint two members to SLF's four-person board of directors. All material decisions with respect to SLF, including those involving its investment portfolio, require unanimous approval of a quorum of the board of directors. Quorum is defined as (i) the presence of two members of the board of directors; provided that at least one individual is present that was elected, designated or appointed by each member; (ii) the presence of three members of the board of directors; provided that the individual that was elected, designated or appointed by the member with only one individual present shall be entitled to cast two votes on each matter; and (iii) the presence of four members of the board of directors; provided that two individuals are present that were elected, designated or appointed by each member.

As part of the initial contribution to SLF, BDCA contributed $751.8 million of assets including $664.2 million of investments and $42.4 million of cash as well as $446.9 million worth of liabilities including the Citi Credit Facility debt of $344.4 million in exchange for $304.9 million of equity in SLF. As of March 31, 2021, BDCA’s investment in SLF consisted of equity contributions of $304.9 million.

Below is a summary of BDCA Senior Loan Fund, LLC’s portfolio, as of March 31, 2021 and a listing of the individual investments in SLF’s portfolio as of such date can be found in “Note 3 – Fair Value of Investments” in the notes to the accompanying consolidated financial statements (dollars in thousands):

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						March 31, 2021
Total assets						$	797,862
Total investments (1)						$	630,755
Weighted Average Current Yield for Total Portfolio (2)						5.60		%
Number of Portfolio companies in SLF						110
Largest portfolio company investment (1)						$	21,480
Total of five largest portfolio company investments (1)						$	97,513

(1)At fair value

(2)Includes the effect of the amortization or accretion of loan premiums or discounts.

Below is certain summarized financial information for the BDCA Senior Loan Fund, LLC as of March 31, 2021 and for the period ended March 31, 2021 (dollars in thousands):

Selected Statements of Assets and Liabilities Information			March 31,
			2021
			(Unaudited)
ASSETS
Investments, at fair value			$	630,755
Cash and other assets			167,107
Total assets			$	797,862
LIABILITIES
Revolving credit facilities			$	376,412
Other liabilities			69,477
Total liabilities			$	445,889
MEMBERS' CAPITAL
Total members' capital			$	351,973
Total liabilities and members' capital			$	797,862

Selected Statements of Operations Information			For the period January 20, 2021 through March 31,
			2021
			(Unaudited)
Investment income:
Total investment income			$	8,452
Operating expenses:
Interest and credit facility financing expenses			1,594
Other expenses			283
Total expenses			1,877
Net investment income			6,575
Realized and unrealized gain:
Net realized and unrealized gain			3,478
Net increase in net assets resulting from operations			$	10,053

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Impact of COVID-19 Pandemic

    The COVID-19 pandemic has resulted in governments around the world implementing a broad suite of measures to help control the spread of the virus, including quarantines, travel restrictions and business curtailments and others. The emergence of COVID-19 has created economic and financial disruptions that during the quarter adversely affected, and may continue to affect, our business, financial condition, liquidity and certain of our portfolio companies’ results of operations and liquidity. The extent to which the COVID-19 pandemic will continue to affect our business, financial condition, liquidity and certain of our portfolio companies’ results of operations and liquidity will depend on future developments, which are highly uncertain and cannot be predicted.

    Given the unprecedented nature of the COVID-19 exigency and the fiscal and monetary response designed to mitigate strain to businesses and the economy, the operating environment of certain of our portfolio companies is evolving rapidly. We have been in frequent communication with management, as well as the private equity sponsors, of our portfolio companies in order to understand the impact of the COVID-19 pandemic on their particular businesses and assess their ability to meet their obligations. As a result of the business disruptions affecting certain of our portfolio companies, we may be required to reduce the future amount of distributions to our stockholders. We continue to closely monitor our investment portfolio in order to be positioned to respond appropriately.

Recent Developments

    We have evaluated subsequent events through the filing of this Form 10-Q and have determined that there have been no events that have occurred that would require adjustments to our disclosures in the consolidated financial statements.

Liquidity and Capital Resources

    We generate cash flows from fees, interest, and dividends earned from our investments, as well as proceeds from sales of our investments and, previously, from the net proceeds of our Offering. As of March 31, 2021, we had issued 230.0 million shares of our common stock for gross proceeds of $2.4 billion, including the shares purchased by affiliates and shares issued pursuant to the DRIP. As of March 31, 2021, we had $610.0 million of senior unsecured notes outstanding. We suspended the DRIP from March 29, 2020 through June 26, 2020. While the DRIP was suspended, participants and all other holders of our common stock received distributions paid in cash. On March 31, 2020, we issued in a private placement an aggregate amount of 9,532,062 newly issued shares of our common stock at a price of $5.77 per share for aggregate cash proceeds of $55.0 million and on April 30, 2020, we issued in a private placement an aggregate amount of 693,240 newly issued shares of our common stock at a price of $5.77 per share for aggregate cash proceeds of $4.0 million.

    Our principal demands for funds in both the short-term and long-term are for portfolio investments, for the payment of operating expenses, distributions to our investors, repurchases under our share repurchase program, and for the payment of principal and interest on our outstanding indebtedness. We may also from time to time enter into other agreements with third parties whereby third parties will contribute to specific investment opportunities. Other potential future sources of capital include proceeds from secured or unsecured financings from banks or other lenders, proceeds from private offerings, proceeds from the sale of investments, and undistributed funds from operations. However, our ability to incur additional debt will be dependent on a number of factors, including our degree of leverage, the value of our unencumbered assets, and borrowing restrictions that may be imposed by lenders.

    We intend to conduct annual tender offers pursuant to our share repurchase program. Our Board of Directors will consider the following factors, among others, in making its determination regarding whether to cause us to offer to repurchase shares and under what terms:

•the effect of such repurchases on our qualification as a RIC (including the consequences of any necessary asset sales);

•the liquidity of our assets (including fees and costs associated with disposing of assets);

•our investment plans and working capital requirements;

•the relative economies of scale with respect to our size;

•our history in repurchasing shares or portions thereof; and

•the condition of the securities markets.

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    We intend to conduct tender offers on an annual basis. We intend to continue to limit the number of shares to be repurchased in any calendar year to the lesser of (i) 10% of the weighted average number of shares outstanding in the prior calendar year or (ii) the number of shares of common stock the Company is able to repurchase with the proceeds received from the sale of shares of common stock under the DRIP during the relevant redemption period. In addition, in the event of a stockholder’s death or disability, any repurchases of shares made in connection with a stockholder’s death or disability may be included within the overall limitation imposed on tender offers during the relevant redemption period, which provides that we may limit the number of shares to be repurchased during any redemption period to the number of shares of common stock we are able to repurchase with the proceeds received from the sale of shares of common stock under the DRIP during such redemption period.

Distributions

    For the period from January 1, 2018 to March 29, 2020, the Company’s Board of Directors had authorized, and had declared, cash distributions payable on a monthly basis to stockholders of record at a distribution rate of $0.00178082 per day, which is equivalent to approximately $0.65 annually, per share of common stock, except for 2020 where the daily distribution rate was $0.00177596 per day to accurately reflect 2020 being a leap year. Effective April 21, 2020, the Board of Directors of the Company approved a transition in the timing of its distributions to holders of the Company's common stock from a monthly to a quarterly basis. On June 26, 2020, the Board declared a regular quarterly cash dividend of $0.10 per share of the Company's common stock, payable on July 6, 2020 to stockholders of record as of June 30, 2020. On September 25, 2020, the Board declared a regular quarterly cash dividend of $0.10 per share of the Company's common stock, payable on October 1, 2020 to stockholders of record as of September 30, 2020. On November 9, 2020, the Board declared a regular quarterly cash dividend of $0.10 per share of the Company's common stock, payable on January 4, 2021 to stockholders of record as of December 31, 2020. On March 11, 2021, the Board declared a regular quarterly cash dividend of $0.10 per share of the Company's common stock, payable on April 1, 2021 to stockholders of record as of March 31, 2021.

    The amount of each such distribution is subject to the discretion of the Board of Directors and applicable legal restrictions related to the payment of distributions. The Company calculates each stockholder’s specific distribution amount for the quarter using record and declaration dates. The distributions are payable by the fifth day following each record date.

    The table below shows the components of the distributions we have declared and/or paid during the three months ended March 31, 2021 and 2020 (dollars in thousands).

			For the three months ended March 31,
			2021						2020
Distributions declared			$	19,757					$	30,727
Distributions paid			$	19,965					$	30,817
Portion of distributions paid in cash			$	15,386					$	22,704
Portion of distributions paid in DRIP shares			$	4,579					$	8,113

    As of March 31, 2021, we had $15.3 million of distributions accrued and unpaid. As of December 31, 2020, we had $15.5 million of distributions accrued and unpaid.

    We may fund our cash distributions to stockholders from any sources of funds available to us, including offering proceeds, borrowings, net investment income from operations, capital gain proceeds from the sale of assets, and non-capital gain proceeds from the sale of assets. We have not established limits on the amount of funds we may use from available sources to make distributions. We may have distributions which could be characterized as a return of capital for tax purposes. During the three months ended March 31, 2021 and 2020 no portion of our distributions was characterized as return of capital for tax purposes. The specific tax characteristics of our distributions made in respect of our anticipated fiscal year ending December 31, 2021 will be reported to stockholders shortly after the end of the calendar year 2021 as well as in our periodic reports with the SEC. Stockholders should read any written disclosure accompanying a distribution payment carefully and should not assume that the source of any distribution is our ordinary income or gain. Moreover, you should understand that any such distributions were not based on our investment performance and can only be sustained if we achieve positive investment performance in future periods and/or our Adviser continues to make such reimbursements. There can be no assurance that we will achieve the performance necessary to sustain our distributions or that we will be able to pay distributions at all.

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    The following table sets forth the distributions declared during the three months ended March 31, 2021 and 2020 (dollars in thousands):

			For the three months ended March 31,
			2021						2020
Distributions			$	19,757					$	30,727
Total distributions			$	19,757					$	30,727

Taxation as a RIC

    We have elected to be treated as a RIC under Subchapter M of the Code commencing with our tax year ended December 31, 2011 and intend to maintain our qualification as a RIC thereafter. As a RIC, we generally will not be subject to corporate-level U.S. federal income taxes on any income that we distribute as dividends for U.S. federal income tax purposes to our stockholders. To maintain our qualification as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements. In addition, in order to maintain RIC tax treatment, we must distribute to our stockholders, for each tax year, an amount equal to at least 90% of our “investment company taxable income,” which is generally our net ordinary income plus the excess, if any, of realized net short-term capital gain over realized net long-term capital loss and determined without regard to any deduction for dividends paid, or the annual distribution requirement. Even if we qualify as a RIC, we generally will be subject to corporate-level U.S. federal income tax on our undistributed taxable income and could be subject to state, local, and foreign taxes.

Additionally, in order to avoid the imposition of a U.S. federal excise tax, we are required to distribute, in respect of each calendar year, dividends to our stockholders of an amount at least equal to the sum of 98% of our calendar year net ordinary income (taking into account certain deferrals and elections); 98.2% of our capital gain net income (adjusted for certain ordinary losses) for the one year period ending on October 31 of such calendar year; and any net ordinary income and capital gain net income for preceding calendar years that were not distributed during such calendar years and on which we previously did not incur any U.S. federal income tax. If we fail to qualify as a RIC for any reason and become subject to corporate tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available for distribution and the amount of our distributions. Such a failure would have a material adverse effect on us and our stockholders. In addition, we could be required to recognize unrealized gains, incur substantial taxes and interest and make substantial distributions in order to re-qualify as a RIC. We cannot assure stockholders that they will receive any distributions.

Related Party Transactions and Agreements

Private Placement in connection with FT Transaction

    On February 1, 2019, Franklin Templeton acquired BSP, including BSP's 100% ownership interest in our Advisor (the "FT Transaction"). In connection with the FT Transaction, on November 1, 2018, we issued approximately 6.1 million and 4.9 million shares of our common stock to Franklin Resources, Inc. and BSP, respectively, at a purchase price of $8.20 per share in a private placement in reliance on Section 4(a)(2) of the Securities Act. As a result of this issuance, the Company received aggregate cash proceeds of $90.0 million.

Investment Advisory Agreement

    We entered into an Investment Advisory Agreement as of February 1, 2019, which was approved by the Board of Directors for a two year term, under which the Adviser, subject to the overall supervision of our Board of Directors manages the day-to-day operations of, and provides investment advisory services to us. The Adviser and its affiliates also provide investment advisory services to other funds that have investment mandates that are similar, in whole and in part, with ours. The Adviser and its affiliates serve as investment adviser or sub-adviser to private funds and registered open-end funds, and serves as an investment adviser to a public real estate investment trust. The Adviser’s policies are designed to manage and mitigate the conflicts of interest associated with the allocation of investment opportunities. In addition, any affiliated fund currently formed or formed in the future and managed by the Adviser or its affiliates may have overlapping investment objectives with our own and, accordingly, may invest in asset classes similar to those targeted by us. However, in certain instances due to regulatory, tax, investment, or other restrictions, certain investment opportunities may not be appropriate for either us or other funds managed by the Adviser or its affiliates. The Board renewed the Investment Advisory Agreement on January 21, 2021.

    Prior to February 1, 2019, our Adviser provided investment advisory and management services under the Prior Investment Advisory Agreement, effective November 1, 2016, and most recently re-approved by the Board in August 2018. The terms of the Prior Investment Advisory Agreement were materially identical to the Investment Advisory Agreement. The Prior Investment Advisory Agreement automatically terminated upon the indirect change of control of the Adviser on the consummation of the FT Transaction.

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Administration Agreement

    On November 1, 2016, we entered into the Administration Agreement with BSP, pursuant to which BSP provides us with office facilities and administrative services. The Administration Agreement may be terminated by either party without penalty upon not less than 60 days’ written notice to the other. For the three months ended March 31, 2021 and 2020, the Company incurred $0.5 million and $0.7 million, respectively, in administrative service fees under the Administration Agreement.

Co-Investment Relief

    The 1940 Act generally prohibits BDCs from entering into negotiated co-investments with affiliates absent an order from the SEC permitting the BDC to do so. The SEC staff has granted us exemptive relief that allows it to enter into certain negotiated co-investment transactions alongside other funds managed by the Adviser or its affiliates (“Affiliated Funds”) in a manner consistent with our 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, we are permitted to co-invest with our affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of our eligible 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 us and our stockholders and do not involve overreaching in respect of us or our stockholders on the part of any person concerned, and (2) the transaction is consistent with the interests of our stockholders and is consistent with our investment objective and strategies.

Borrowings

We are only allowed to borrow money such that our asset coverage, which, as defined in the 1940 Act, measures the ratio of total assets less total liabilities not represented by senior securities to total borrowings, equals at least 200% after such borrowing, with certain limited exceptions. We are continually exploring additional forms of alternative debt financing which could include new or expanded credit facilities or the issuance of debt securities. We may use borrowed funds, known as “leverage,” to make investments and to attempt to increase returns to our stockholders by reducing our overall cost of capital. We currently have credit facilities with Wells Fargo, JPM, and MassMutual and have sold $610.0 million in aggregate principal of unsecured notes.

Wells Fargo Credit Facility

On July 24, 2012, the Company, through a wholly-owned, consolidated special purpose financing subsidiary, Funding I, entered into a revolving credit facility with Wells Fargo and U.S. Bank as collateral agent, account bank, and collateral custodian (as amended from time to time, the "Existing Wells Fargo Credit Facility"). The Existing Wells Fargo Credit Facility was amended on July 7, 2020 (the "July 7th Amendment") to decrease the total aggregate principal amount of borrowings from $600.0 million on a committed basis to $575.0 million. Prior to the July 7th Amendment, the facility was priced at one-month LIBOR, with no LIBOR floor, plus a spread ranging between 1.65% and 2.50% per annum. After the July 7th Amendment, the Existing Wells Fargo Credit Facility was priced at one-month LIBOR, with no LIBOR floor, plus a spread of 2.75% per annum. Interest was payable quarterly in arrears. Funding I was subject to a non-usage fee to the extent the aggregate principal amount available under the Existing Wells Fargo Credit Facility has not been borrowed. The non-usage fee per annum was 0.50% for the first 25% of the unused balance and 2.0% for the portion of the unused balance that exceeds 25%, except for the period from March 15, 2019 through June 15, 2019, where the non-usage fee per annum was 0.50% on any principal amount unused.

On August 28, 2020, the Company refinanced the Existing Wells Fargo Credit Facility with (i) a $300.0 million revolving credit facility with the Company, as collateral manager, Funding I, as borrower, the lenders party thereto, Wells Fargo, as administrative agent, and U.S. Bank, as collateral agent and collateral custodian (the "New Wells Fargo Credit Facility," together with Existing Wells Fargo Credit Facility, "Wells Fargo Credit Facility") and (ii) the JPM Credit Facility (as defined below).

The New Wells Fargo Credit Facility provides for borrowings of up to $300.0 million through August 28, 2023, and any amounts borrowed under the New Wells Fargo Credit Facility will mature on August 28, 2025. The New Wells Fargo Credit Facility is priced at three-month LIBOR, with a LIBOR floor of zero, plus a spread calculated based upon the composition of loans in the collateral pool, which will not exceed 2.75% per annum. Interest is payable quarterly in arrears. Funding I will be subject to a non-usage fee to the extent the commitments available under the New Wells Fargo Credit Facility have not been borrowed. The non-usage fee per annum is 0.50% for the first 25% of the unused balance and 2.0% for the portion of the unused balance that exceeds 25%. Funding I paid a structuring fee and incurred other customary costs and expenses in connection with the New Wells Fargo Credit Facility.Pursuant to an amendment entered into on April 6, 2021, the commitment fee for any unused portion of the New Wells Fargo Credit Facility was temporarily reduced until September 30, 2021. Additionally, the maximum spread was reduced from 2.75% to 2.50% as a result of this amendment. The other terms of the New Wells Fargo Credit Facility were unchanged.

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Funding I’s obligations under the New Wells Fargo Credit Facility are secured by a first priority security interest in substantially all of the assets of Funding I, including its portfolio of investments and the Company’s equity interest in Funding I. The obligations of Funding I under the New Wells Fargo Credit Facility are non-recourse to the Company.

In connection with the New Wells Fargo Credit Facility, the Company and Funding I have made certain representations and warranties and are required to comply with various covenants and other customary requirements. The New Wells Fargo Credit Facility contains customary default provisions pursuant to which the administrative agent and the lenders under the New Wells Fargo Credit Facility may terminate the Company in its capacity as collateral manager/portfolio manager under the New Wells Fargo Credit Facility. Upon the occurrence of an event of default under the New Wells Fargo Credit Facility, the administrative agent or the lenders may declare the outstanding advances and all other obligations under the New Wells Fargo Credit Facility immediately due and payable.

JPM Credit Facility

On August 28, 2020, the Company, through a wholly-owned, consolidated special purpose financing subsidiary, 57th Street, entered into a $300.0 million revolving credit facility with JPMorgan Chase Bank, Nation Association, as administrative agent ("JPM"), and U.S. Bank, as collateral agent, collateral administrator and securities intermediary (the "JPM Credit Facility"). The JPM Credit Facility provides for borrowings of up to $300.0 million through August 28, 2023, and any amounts borrowed under the JPM Credit Facility will mature on August 28, 2023 unless the administrative agent exercises its option to extend the maturity date to August 28, 2024. The JPM Credit Facility is priced at three-month LIBOR, with a LIBOR floor of zero, plus a spread of 2.75% per annum. Interest is payable quarterly in arrears. 57th Street will be subject to a non-usage fee to the extent the commitments available under the JPM Credit Facility have not been borrowed. The non-usage fee per annum is 0.50% for the first 20% of the unused balance and 2.75% for the portion of the unused balance that exceeds 20%. 57th Street paid a structuring fee and incurred other customary costs and expenses in connection with the JPM Credit Facility. On January 21, 2021, the Company entered into an amendment (the “JPM Amendment”) to the JPM Credit Facility. The JPM Amendment, among other things, increases the amount that the Company is permitted to borrow under the JPM Credit Agreement from $300.0 million to $400.0 million. On April 12, 2021, the Company, through 57th Street, amended and restated the JPM Credit Facility. The amendment and restatement temporarily reduces the previous minimum funding amount until October 13, 2021. The other material terms of the JPM Credit Facility were unchanged.

57th Street’s obligations under the JPM Credit Facility are secured by a first priority security interest in substantially all of the assets of 57th Street, including its portfolio of investments and the Company’s equity interest in 57th Street. The obligations of 57th Street under the JPM Credit Facility are non-recourse to the Company.

In connection with the JPM Credit Facility, the Company and 57th Street have made certain representations and warranties and are required to comply with various covenants and other customary requirements. The JPM Credit Facility contains customary default provisions pursuant to which the administrative agent and the lenders under the JPM Credit Facility may terminate the Company in its capacity as collateral manager/portfolio manager under the JPM Credit Facility. Upon the occurrence of an event of default under the JPM Credit Facility, the administrative agent or the lenders may declare the outstanding advances and all other obligations under the JPM Credit Facility immediately due and payable.

Citi Credit Facility

On June 27, 2014, the Company, through a wholly-owned, special purpose financing subsidiary, CB Funding, entered into a credit facility as amended from time to time, (the “Citi Credit Facility”) with Citibank, N.A. ("Citi") as administrative agent and U.S. Bank as collateral agent, account bank, and collateral custodian. From January 1, 2020 to January 20, 2021 the Citi Credit Facility provided for borrowings in an aggregate principal amount of up to $400.0 million on a committed basis, with a reinvestment period ending on May 31, 2021 and maturity date of May 31, 2022. On January 20, 2021, SLF entered into an amendment to the Citi Credit Facility (the “Citi Credit Agreement”). The amendment, among other things, (i) replaces the Company with SLF as the collateral manager under the Citi Credit Agreement, (ii) extends the end of the reinvestment period from May 31, 2021 to May 31, 2023 and (iii) extends the final maturity date from May 31, 2022 to May 31, 2024. As a result of this amendment to the Citi Credit Facility, the Company incurred a realized loss on extinguishment of debt of $(1.3) million. In connection with the Citi Credit Facility, CB Funding has made certain representations and warranties, is required to comply with various covenants, reporting requirements, and other customary requirements for similar facilities and is subject to certain customary events of default. Upon the occurrence and during the continuation of an event of default, Citi may declare the outstanding advances and all other obligations under the Citi Credit Facility immediately due and payable. During the continuation of an event of default, CB Funding must pay interest at a default rate.

The Citi Credit Facility contains customary default provisions for facilities of this type pursuant to which Citi may terminate the rights, obligations, power, and authority of the Company, in its capacity as servicer of the portfolio assets under the Citi Credit Facility, including, but not limited to, non-performance of Citi Credit Facility obligations, insolvency, defaults of certain financial covenants, and other events with respect to the Company that may be adverse to Citi and the secured parties under the Citi Credit Facility.

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The Citi Credit Facility is priced at three month LIBOR plus a spread of 1.60% per annum through and including the last day of the investment period and 2.00% per annum thereafter. Interest is payable quarterly in arrears. CB Funding is subject to a non-usage fee to the extent the aggregate principal amount available under the Citi Credit Facility has not been borrowed. The non-usage fee per annum is 0.50%. Any amounts borrowed under the Citi Credit Facility along with any accrued and unpaid interest thereunder will mature, and will be due and payable, in three years.

MassMutual Credit Facility

On July 7, 2020, the Company and a wholly-owned, special purpose financing subsidiary of the Company, BDCA Asset Financing, LLC (“BDCA Asset Financing”), entered into a loan and servicing agreement (the “MassMutual Credit Facility”) with Massachusetts Mutual Life Insurance Company (“MassMutual”) as facility servicer and a lender and U.S. Bank National Association as collateral custodian, collateral administrator and administrative agent. The MassMutual Credit Facility provides for borrowings of up to $100.0 million on a committed basis, and, subject to satisfaction of certain conditions, contains an accordion feature whereby the Mass Mutual Credit Facility can be expanded to $150.0 million.

BDCA Asset Financing’s obligations under the MassMutual Credit Facility are secured by a first priority security interest in substantially all of the assets of BDCA Asset Financing, including its portfolio of investments and the Company’s equity interest in BDCA Asset Financing. The obligations of BDCA Asset Financing under the MassMutual Credit Facility are non-recourse to the Company.

The MassMutual Credit Facility provides for borrowings through December 31, 2021 and matures on December 31, 2025. The MassMutual Credit Facility is priced at three-month LIBOR, with a LIBOR floor of 0.75%, plus a spread of 5.0% per annum. Interest is payable quarterly in arrears. BDCA Asset Financing will be subject to a non-usage fee of 0.50% to the extent the aggregate principal amount available under the MassMutual Credit Facility has not been borrowed. BDCA Asset Financing paid a structuring fee and incurred other customary costs and expenses in connection with the MassMutual Credit Facility.

In connection with the MassMutual Credit Facility, the Company and BDCA Asset Financing have made certain representations and warranties and are required to comply with various covenants and other customary requirements. The MassMutual Credit Facility contains customary default provisions pursuant to which MassMutual may terminate the Company in its capacity as portfolio asset servicer of the portfolio assets under the MassMutual Credit Facility. Upon the occurrence of an event of default, MassMutual may declare the outstanding advances and all other obligations under the MassMutual Credit Facility immediately due and payable.

2020 Notes

    On August 26, 2015, the Company entered into a Purchase Agreement relating to the Company’s sale of $100.0 million aggregate principal amount of its 6.00% fixed rate senior notes due September 1, 2020 (the “2020 Notes”). The 2020 Notes were subject to customary indemnification provisions and representations, warranties, and covenants. The net proceeds from the sale of the 2020 Notes were approximately $97.9 million. The 2020 Notes bore interest at a rate of 6.00% per year payable semi-annually.

    On August 14, 2020, the Company redeemed all outstanding 2020 Notes.

2022 Notes

    On December 14, 2017, the Company entered into a Purchase Agreement relating to the Company's sale of $150.0 million aggregate principal amount of its 4.75% fixed rate notes due December 30, 2022 (the “2022 Notes”). The 2022 Notes are subject to customary indemnification provisions and representations, warranties, and covenants. The net proceeds from the sale of the 2022 Notes were approximately $147.0 million. The 2022 Notes bear interest at a rate of 4.75% per year payable semi-annually.

2023 Notes

    On May 11, 2018, the Company entered into a Purchase Agreement relating to the Company's sale of $60.0 million aggregate principal amount of its 5.375% fixed rate notes due May 30, 2023 (the “2023 Notes”). The 2023 Notes are subject to customary indemnification provisions and representations, warranties, and covenants. The net proceeds from the sale of the 2023 Notes were approximately $58.7 million. The 2023 Notes bear interest at a rate of 5.375% per year payable semi-annually.

2024 Notes

    On December 3, 2019, the Company entered into a Purchase Agreement relating to the Company's sale of $100.0 million aggregate principal amount of its 4.85% fixed rate notes due December 15, 2024 (the “2024 Notes”). The 2024 Notes are subject to customary indemnification provisions and representations, warranties, and covenants. The net proceeds from the sale of the 2024 Notes were approximately $98.4 million. The 2024 Notes bear interest at a rate of 4.85% per year payable semi-annually.

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2026 Notes

    On March 24, 2021, the Company entered into a Purchase Agreement relating to the Company's sale of $300.0 million aggregate principal amount of its 3.25% fixed rate notes due March 30, 2026 (the “2026 Notes”). The 2026 Notes are subject to customary indemnification provisions and representations, warranties, and covenants. The net proceeds from the sale of the 2026 Notes were approximately $296.0 million. The 2026 Notes bear interest at a rate of 3.250% per year payable semi-annually.

See Note 5 to our consolidated financial statements contained in this Quarterly Report on Form 10-Q for a more detailed discussion of our borrowings.

Contractual Obligations

    The following table shows our payment obligations for repayment of debt and other contractual obligations as of March 31, 2021 (dollars in thousands):

									Payment Due by Period
			Total						Less than 1 year						1 - 3 years						3- 5 years						More than 5 years
Wells Fargo Credit Facility (1)			$	173,700					$	—					$	—					$	173,700					$	—
JPM Credit Facility (2)			120,000						—						120,000						—						—
MassMutual Credit Facility (3)			—						—						—						—						—
2026 Notes (4)			296,101						—						—						296,101						—
2024 Notes (5)			99,116						—						—						99,116						—
2023 Notes (6)			59,859						—						59,859						—						—
2022 Notes (7)			149,711						—						149,711						—						—
Total contractual obligations			$	898,487					$	—					$	329,570					$	568,917					$	—

______________

(1)As of March 31, 2021, we had $126.3 million of unused borrowing capacity under the Wells Fargo Credit Facility, subject to borrowing base limits.

(2)As of March 31, 2021, we had $280.0 million of unused borrowing capacity under the JPM Credit Facility, subject to borrowing base limits.

(3)As of March 31, 2021, we had $100.0 million of unused borrowing capacity under the MassMutual Credit Facility, subject to borrowing base limits.

(4)As of March 31, 2021, we had no unused borrowing capacity under the 2026 Notes.

(5)As of March 31, 2021, we had no unused borrowing capacity under the 2024 Notes.

(6)As of March 31, 2021, we had no unused borrowing capacity under the 2023 Notes.

(7)As of March 31, 2021, we had no unused borrowing capacity under the 2022 Notes.

Off-Balance Sheet Arrangements

    We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources.

Commitments

    In the ordinary course of business, we may enter into future funding commitments. As of March 31, 2021, the Company had unfunded commitments on delayed draw term loans of $44.3 million (including $42.1 million of non-discretionary commitments and $2.2 million of discretionary commitments), unfunded commitments on revolver term loans of $49.4 million, unfunded equity capital discretionary commitments of $11.1 million, and unfunded commitments on term loans of $3.8 million. As of December 31, 2020, the Company had unfunded commitments on delayed draw term loans of $42.7 million (including $40.2 million of non-discretionary commitments and $2.5 million of discretionary commitments), unfunded commitments on revolver term loans of $48.5 million, unfunded equity capital discretionary commitments of $11.1 million, and unfunded commitments on term loans of $3.8 million. Please refer to Note 7 - Commitments and Contingencies for further detail of these unfunded commitments. We maintain sufficient cash on hand and available borrowing capacity to fund such unfunded commitments.

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Significant Accounting Estimates and Critical Accounting Policies

    Our discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

    While our significant accounting policies are more fully described in Note 2 - Summary of Significant Accounting Policies appearing elsewhere in this report, we believe the following accounting policies require the most significant judgment in the preparation of our consolidated financial statements.

Valuation of Portfolio Investments

    Portfolio investments are reported on the consolidated statements of assets and liabilities at fair value. On a quarterly basis we perform an analysis of each investment to determine fair value as follows:

    Securities for which market quotations are readily available on an exchange are valued at the reported closing price on the valuation date. We may also obtain quotes with respect to certain of our investments from pricing services or brokers or dealers in order to value assets. When doing so, we determine whether the quote obtained is readily available according to U.S. GAAP to determine the fair value of the security. If determined readily available, we use the quote obtained.

    Investments without a readily determined market value are primarily valued using a market approach, an income approach, or both approaches, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). 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 we may take into account in fair value pricing our investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, 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, M&A comparables, and enterprise values, among other factors. When available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process.

    For an investment in an investment fund that does not have a readily determinable fair value, we measure the fair value of the investment predominately based on the net asset value per share of the investment fund if the net asset value of the investment fund is calculated in a manner consistent with the measurement principles of ASC 946, as of our measurement date.

    For investments in Collateralized Securities, both the assets and liabilities of each Collateralized Securities' capital structure are modeled. The model uses a waterfall engine to store the collateral data, generate collateral cash flows from the assets and distribute the cash flows to the liability structure based on the contractual priority of payments. The waterfall cash flows are discounted using rates that incorporate risk factors such as default risk, interest rate risk, downgrade risk, and credit spread risk, among others. In addition, broker quotations and/or comparable trade activity is considered as an input to determining fair value when available.

    As part of our quarterly valuation process the Adviser may be assisted by one or more independent valuation firms engaged by us. The Board of Directors determines the fair value of each investment, in good faith, based on the input of the Adviser and the independent valuation firm(s) (to the extent applicable).

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

•Each portfolio company or investment will be valued by the Adviser, potentially with assistance from one or more independent valuation firms engaged by our Board of Directors;

•The independent valuation firm(s), if involved, will conduct independent appraisals and make an independent assessment of the value of each investment; and

•The Board of Directors determines the fair value of each investment, in good faith, based on the input of the Adviser, independent valuation firm (to the extent applicable) and the audit committee of the Board of Directors.

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    Because there is not a readily available market value for most of the investments in its portfolio, we value substantially all of our portfolio investments at fair value as determined in good faith by our Board of Directors, as described herein. 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 our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it.

Revenue Recognition

Interest Income

    Investment transactions are accounted for on the trade date. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Discount and premium on investments purchased are accreted/amortized over the expected life of the respective investment using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of discount and amortization of premium on investments.

    The Company has a number of investments in Collateralized Securities. Interest income from investments in the “equity” class of these Collateralized Securities (in the Company's case, preferred shares, or subordinated notes) is recorded based upon an estimation of an effective yield to expected maturity utilizing assumed cash flows in accordance with ASC 325-40-35, Beneficial Interests in Securitized Financial Assets ("ASC 325-40-35"). The Company monitors the expected cash inflows from its equity investments in Collateralized Securities, including the expected principal repayments. The effective yield is determined and updated quarterly. In accordance with ASC 325-40, investments in CLOs are periodically assessed for other-than-temporary impairment ("OTTI"). When the Company determines that a CLO has OTTI, the amortized cost basis of the CLO is written down as of the date of the determination based on events and information evaluated and that write-down is recognized as a realized loss.

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.

Fee Income

    Fee income, such as structuring fees, origination, closing, amendment fees, commitment, and other upfront fees are generally non-recurring and are recognized as revenue when earned, either upfront or amortized into income. Upon the payment of a loan or debt security, any prepayment penalties and unamortized loan origination, structuring, closing, commitment, and other upfront fees are recorded as income.

Payment-in-Kind Interest/Dividends

    We hold debt and equity investments in our portfolio that contain PIK interest and dividend provisions. The PIK interest and PIK dividend, which represent contractually deferred interest or dividends that add to the investment balance that is generally due at maturity, are recorded on the accrual basis to the extent such amounts are expected to be collected.

Non-accrual Income

    Investments are placed on non-accrual status when principal or interest/dividend payments are past due and/or when there is reasonable doubt that principal or interest will be collected. Accrued cash and un-capitalized PIK interest is generally reversed when an investment is placed on non-accrual status. Previously capitalized PIK interest is not reversed when an investment is placed on non-accrual status. Interest payments received on non-accrual investments may be recognized as income or applied to principal depending upon management's judgment of the ultimate outcome. Non-accrual investments are restored to accrual status when past due principal and interest is paid and, in management's judgment, are likely to remain current.

Net Realized Gain or Loss and Net Change in Unrealized Appreciation or Depreciation

    Gain or loss on the sale of investments is calculated using the specific identification method. We measure realized gain or loss by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation or depreciation will reflect the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when a gain or loss is realized.

    See Note 2 - Summary of Significant Accounting Policies to the consolidated financial statements for a description of other accounting policies and recently issued accounting pronouncements.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

    The market risk associated with financial instruments and derivative financial instruments is the risk of loss from adverse changes in market prices or interest rates. Our market risk arises primarily from interest rate risk relating to interest rate fluctuations. Many factors including governmental monetary and tax policies, domestic and international economic and political considerations, and other factors that are beyond our control contribute to interest rate risk. To meet our short and long-term liquidity requirements, we borrow funds at a combination of fixed and variable rates. Our interest rate risk management objectives are to limit the impact of interest rate changes in earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, from time to time, we may enter into interest rate hedge contracts such as swaps, collars, and treasury lock agreements, subject to the requirements of the 1940 Act, in order to mitigate our interest rate risk with respect to various debt instruments. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of investments with fixed interest rates. During the periods covered by this report, we did not engage in interest rate hedging activities. We would not hold or issue these derivative contracts for trading or speculative purposes.

    As of March 31, 2021, our debt included variable-rate debt, bearing a weighted average interest rate of LIBOR plus 2.67% and fixed rate debt, bearing a weighted average interest rate of 4.09% with a total carrying value (net of deferred financing costs) of $886.7 million. The following table quantifies the potential changes in interest income net of interest expense should base interest rates increase or decrease by the amounts below assuming that our current consolidated statement of assets and liabilities was to remain constant and no actions were taken to alter our existing interest rate sensitivity. Interest rate floors, if applicable, are not reflected in the sensitivity analysis below.

Change in Base Interest Rates						Estimated Change in Interest Income net of Interest Expense (in thousands)
(-) 19 Basis Points						$	(3,156)
(+) 50 Basis Points						$	8,125
(+) 100 Basis Points						$	16,249
(+) 200 Basis Points						$	32,499

    Because we may borrow money to make investments, our net investment income may be dependent on the difference between the rate at which we borrow funds and the rate at which we invest these funds. In periods of increasing interest rates, our cost of funds would increase, which may reduce our net investment income. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

Capital Markets Risk

    The prices of securities we hold may decline in response to certain events, including those directly involving the companies we invest in; conditions affecting the general economy; overall market changes; legislative reform; local, regional, national or global political, social or economic instability; and interest rate fluctuations. In addition, U.S. and global capital markets and credit markets have experienced a higher level of stress due to the global COVID-19 pandemic, which has resulted in an increase in the level of volatility across such markets and a general decline in value of the publicly-traded securities held by us.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

In accordance with Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 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 the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were (a) designed to ensure that the information we are required to disclose in our reports under the Exchange Act is recorded, processed, and reported in an accurate manner and on a timely basis and the information that we are required to disclose in our Exchange Act reports is accumulated and communicated to management to permit timely decisions with respect to required disclosure and (b) operating in an effective manner.

Change in Internal Control Over Financial Reporting

No change occurred in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the quarter ended March 31, 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

    As of March 31, 2021, we were not defendants 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. Third parties may also seek to impose liability on us in connection with the activities of our portfolio companies.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed below and in Part I., “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which could materially affect our business, financial condition, and/or operating results. The risks described below and in our Annual Report on Form 10-K are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and/or operating results.

Because we borrow money, the potential for gain or loss on amounts invested in us will be magnified and may increase the risk of investing in us.

    As of March 31, 2021, we had approximately $0.9 billion of debt financing. The use of borrowings, also known as leverage, increases the volatility of investments by magnifying the potential for gain or loss on invested equity capital. Because we use leverage to partially finance our investments, through borrowing from banks and other lenders, you will experience increased risks of investing in our common stock. If the value of our assets increases, leveraging would cause the net asset value attributable to our common stock to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause our net asset value to decline more sharply than it otherwise would have had we not leveraged. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net income to increase more than it would without the leverage, while any decrease in our income would cause net income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to make common stock distribution payments. Leverage is generally considered a speculative investment technique.

Illustration. The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing below. The calculation assumes (i) $2.9 billion in total assets, (ii) a weighted average cost of funds of 3.50%, (iii) $1.4 billion in debt outstanding (i.e., assumes that the $610.0 million principal amount of our unsecured notes sold and the full $0.8 billion available to us under our revolving credit facilities is outstanding), and (iv) $1.4 billion in stockholders’ equity. In order to compute the “Corresponding return to stockholders,” the “Assumed Return on Our Portfolio (net of expenses)” is multiplied by the assumed total assets to obtain an assumed return to us. From this amount, the interest expense is calculated by multiplying the assumed weighted average cost of funds by the assumed debt outstanding, and the product is subtracted from the assumed return to us in order to determine the return available to stockholders. The return available to stockholders is then divided by our stockholders’ equity to determine the “Corresponding return to stockholders.” Actual interest payments may be different.

Assumed Return on Our Portfolio (net of expenses)						(10)%						(5)%						—%						5%						10%
Corresponding return to stockholders (1)						(23.76)%						(13.60)%						(3.44)%						6.72%						16.87%

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(1) In order for us to cover our hypothetical annual interest payments on indebtedness, we would need to achieve annual returns on our March 31, 2021 total assets of at least 1.70%.

As of March 31, 2021, the Wells Fargo Credit Facility provided for borrowings in an aggregate principal amount of up to $300.0 million on a committed basis, due August 28, 2025; the MassMutual Credit Facility provided for borrowings in an aggregate principal amount of up to $100.0 million on a committed basis, and, subject to satisfaction of certain conditions, contains an accordion feature whereby the MassMutual Facility can be expanded to $150.0 million, due December 31, 2025; the JPM Credit Facility provided for borrowings in an aggregate principal amount of up to $400.0 million on a committed basis, due August 28, 2023; the 2022 Notes provided borrowings in an aggregate principal amount of $150.0 million, due December 30, 2022; the 2023 Notes provided borrowings in an aggregate principal amount of $60.0 million, due May 30, 2023; the 2024 Notes provided borrowings in an aggregate principal amount of $100.0 million, due December 15, 2024; and the 2026 Notes provided borrowings in an aggregate principal amount of $300.0 million, due March 30, 2026. See Item 7 in the Annual Report filed on Form 10-K for more information about these financing arrangements.

The accompanying notes are an integral part of these consolidated financial statements.

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The discontinuation of LIBOR and the transition to any new reference rates may affect the value of our LIBOR-indexed portfolio investments and may increase the cost of borrowing under our credit facilities, which in each case could affect our results of operations or financial condition.

On July 27, 2017, the U.K. Financial Conduct Authority (“FCA”) announced that LIBOR would be phased out of use after the 2021 calendar year, and the FCA has determined not to compel participant banks to submit LIBOR information after 2021. In response to the expected discontinuation of LIBOR, the Federal Reserve Board and the Federal Reserve Bank of New York formed the Alternative Reference Rates Committee (“ARRC”), a U.S. working group of private-sector representatives and financial regulators, to recommend an alternative reference rate to U.S. dollar LIBOR. Similarly, financial regulators in the UK, the European Union, Japan, and Switzerland formed working groups with the aim of recommending alternatives to LIBOR denominated in their local currencies. The ARRC has recommended the Secured Overnight Financing Rate (“SOFR”) together with a spread adjustment, as appropriate in the particular market, as its preferred alternative reference rate for U.S. dollar LIBOR. SOFR represents the average interest rate to borrow cash overnight collateralized by U.S. Treasury securities, is based on U.S. Treasury-backed repurchase transactions, and published daily by the Federal Reserve Bank.

At this time, it is not possible to predict with complete certainty how the discontinuation of LIBOR will affect financial instruments that utilize LIBOR, whether SOFR or any other alternative reference rates will attain general acceptance in the financial markets, or the pace at which any such transition away from LIBOR and to any other reference rate may occur. The process of phasing out LIBOR or any further changes or reforms to the determination or supervision of LIBOR or alternative reference rates, may result in a sudden or prolonged increase or decrease in reported LIBOR or alternative reference rates, which could have an adverse impact on the market for or value of any securities, loans, derivatives, and other financial obligations or extensions of credit indexed to LIBOR or such alternative reference rate that may be held by or due to us or on our overall financial condition or results of operations.

As of the date of this filing, our Wells Fargo Credit Facility, Citi Credit Facility, MassMutual Credit Facility, and JPM Credit Facility each have provisions which contemplate the transition away from LIBOR. Under the MassMutual Credit Facility, if BDCA Asset Financing, MassMutual or a majority of lenders determine, for a variety of enumerated reasons, that LIBOR cannot or may not be used, the Administrative Agent thereunder and BDCA Asset Financing will determine an alternative benchmark. Within five days of providing the amendment to all lenders, the amendment will take effect. If no alternative rate exists, the MassMutual Credit Facility will default to the higher of the Prime Rate and the Federal Funds Effective Rate plus 0.50%. The Wells Fargo Credit Facility, also provides a mechanism to notify the Administrative Agent that LIBOR is unavailable, defaulting to the Prime Rate or the Federal Funds Effective Rate plus 1.50%. Similarly, the Citi Credit Facility provides a mechanism to notify the Administrative Agent that LIBOR is unavailable, defaulting to the Prime Rate or the Federal Funds Effective Rate plus 1.50%. The JPM Credit Facility provides a mechanism to notify the Administrative Agent that LIBOR is unavailable, defaulting to the Prime Rate or the Federal Funds Effective Rate plus 1.50%. We may have to make amendments to all four credit facilities.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

Repurchases of our common stock pursuant to our tender offer are as follows:

Period						Total Number of Shares Purchased						Average Price per Share						Cumulative Number of Shares Purchased as Part of Publicly Announced Plans or Programs						Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)
January 1, 2021 through January 31, 2021						2,776,140						$	6.71					2,776,140						—
February 1, 2021 through February 28, 2021						—						—						—						—
March 1, 2021 through March 30, 2021						—						—						—						—

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

    Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

    Not applicable.

ITEM 5. OTHER INFORMATION

    None.

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ITEM 6. EXHIBITS

    The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q for the three months ended March 31, 2021 (and are numbered in accordance with Item 601 of Regulation S-K).

Exhibit No.			Description
4.1			Indenture, dated as of March 29, 2021, by and between the Company and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed on March 30, 2021 and herein incorporated by reference).
4.2			First Supplemental Indenture, dated as of March 29, 2021, relating to the 3.250% Notes due 2026, by and between the Company and U.S. Bank National Association, as trustee (filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on March 30, 2021 and herein incorporated by reference).
4.3			Form of 3.250% Notes due 2026. (Incorporated by reference to Exhibit 4.2 hereto).
4.4			Registration Rights Agreement, dated as of March 29, 2021, by and among the Company, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, as the representatives of the Initial Purchasers Agent (filed as Exhibit 4.4 to the Company’s Current Report on Form 8-K filed on March 30, 2021 and herein incorporated by reference).
10.1			Limited Liability Company Agreement of BDCA Senior Loan Fund, LLC dated as of January 20, 2021 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on January 9, 2021 and herein incorporated by reference).
10.2			Ninth Amendment to Credit and Security Agreement, dated as of January 20, 2021, among BDCA-CB Funding, LLC, as borrower, the Lenders, Citibank, N.A., as administrative agent, U.S. Bank National Association, as collateral agent and as custodian, and BDCA Senior Loan Fund, LLC as collateral manager (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on January 26, 2021 and herein incorporated by reference).
10.3			First Amendment to Loan and Security Agreement and First Commitment Increase Request, dated as of January 21, 2021, among BDCA 57th Street Funding, LLC, as Borrower, the Corporation, as Portfolio Manager, the Lenders party thereto, U.S. Bank National Association, as Collateral Agent, Collateral Administrator and Securities Intermediary, and JPMorgan Chase Bank, National Association, as Administrative Agent (filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on January 26, 2021 and herein incorporated by reference).
10.4			Amendment No. 1 to Loan and Servicing Agreement, dated as of April 6, 2021, by and among BDCA Funding I, LLC, the Corporation, Wells Fargo Bank, National Association, each of the Lenders and Lender Agents party thereto and U.S. Bank National Association (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on April 8, 2021 and herein incorporated by reference).
10.5			Amended and Restated Loan and Security Agreement, dated as of April 12, 2021, among BDCA 57th Street Funding, LLC, as Borrower, the Corporation, as Portfolio Manager, the Lenders party thereto, U.S. Bank National Association, as Collateral Agent, Collateral Administrator and Securities Intermediary, and JPMorgan Chase Bank, National Association, as Administrative Agent (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on April 16, 2021 and herein incorporated by reference).
31.1			Certification of the Principal Executive Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.2			Certification of the Principal Financial Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32			Written statement of the Principal Executive Officer and Principal Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

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SIGNATURES

 

Pursuant to the requirements 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.

Signature

Title

Date

/s/ Richard J. Byrne Richard J. Byrne

Chief Executive Officer, President, and Chairman of the Board of Directors (Principal Executive Officer)

May 13, 2021

/s/ Nina Kang Baryski Nina Kang Baryski

Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)

May 13, 2021

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