WhiteHorse Finance, Inc.

Previous wording

Comparison of the Three and Six Months Ended June 30, 2025 and June 30, 2024

Current wording

Comparison of the Three and Nine Months Ended September 30, 2025 and September 30, 2024

Previous wording

Set forth below are the consolidated results of operations for the three and six months ended June 30, 2025 and 2024:

Current wording

Set forth below are the consolidated results of operations for the three and nine months ended September 30, 2025 and 2024:

Previous wording

Consolidated operating results for the three and six months ended June 30, 2025 and 2024 are as follows:

Current wording

Consolidated operating results for the three and nine months ended September 30, 2025 and 2024 are as follows:

Previous wording

Net investment income for the three and six months ended June 30, 2025 totaled $6.6 million and $13.4 million, respectively. Net investment income for the three and six months ended June 30, 2024 totaled $9.3 million and $20.1 million, respectively. Net investment income decreased by $2.7 million and $6.7 million for the three and six months ended June 30, 2025 from the three and six months ended June 30, 2024, as described below under “Investment Income” and “Operating Expenses.”

Current wording

Net investment income for the three and nine months ended September 30, 2025 totaled $6.1 million and $19.5 million, respectively. Net investment income for the three and nine months ended September 30, 2024 totaled $9.2 million and $29.3 million, respectively. Net investment income decreased by $3.1 million and $9.8 million for the three and nine months ended September 30, 2025 from the three and nine months ended September 30, 2024, as described below under “Investment Income” and “Operating Expenses.”

Previous wording

The following table summarizes our investment income for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table summarizes our investment income for the three and nine months ended September 30, 2025 and 2024:

Previous wording

Interest income other than PIK income, decreased $3.3 million and $7.3 million for the three and six months ended June 30, 2025 from the three and six months ended June 30, 2024, primarily attributable to lower yields, investments placed on non-accrual status and lower portfolio size. For the three and six months ended June 30, 2025, the weighted average size of the debt portfolio, excluding STRS JV, andthe weighted average yield on income producing investments, excluding STRS JV, was $549.6 million and $553.7 million, and 11.9% and 12.0%, respectively. For the three and six months ended June 30, 2024, the weighted average size of the debt portfolio, excluding STRS JV, and theweighted average yield on income producing investments, excluding STRS JV, was $583.9 million and $597.0 million and 13.8% and 13.7% respectively. During the three months ended June 30, 2024 and three months ended September 30, 2024, the Honors Holdings, LLC (d/b/a Orange Theory) and Telestream Holdings Corporation investments were placed on non-accrual status, respectively.

Current wording

Interest income other than PIK income, decreased $2.8 million and $10.2 million for the three and nine months ended September 30, 2025 from the three and nine months ended September 30,2024, primarily attributable to lower yields, investments placed on non-accrual status and lower portfolio size. For the three and nine months ended September 30, 2025, the weighted average size of the debt portfolio, excluding STRS JV, andthe weighted average cash yield on income producing investments, excluding STRS JV, was $495.0 million and $531.8 million, and 9.9% and 9.3%, respectively. For the three and nine months ended September 30, 2024, the weighted average size of the debt portfolio, excluding STRS JV, and theweighted average cash yield on income producing investments, excluding STRS JV, was $567.7 million and $590.2 million and 10.3% and 10.7% respectively. During the the three months ended June 30, 2024 and three months ended September 30, 2024, the Honors Holdings, LLC (d/b/a Orange Theory) and Telestream Holdings Corporation investments were placed on non-accrual status, respectively.

Previous wording

PIK income decreased by $1.2 million for the three months ended June 30, 2025 from the three months ended June 30, 2024, primarily due to $0.9 million of PIK income earned on the Honors Holdings, LLC (d/b/a Orange Theory) investments during the three months ended June 30, 2024. PIK income decreased $2.5 million for the six months ended June 30, 2025 from the six months ended June 30, 2024 due to higher PIK income earned in the six months ended June 30, 2025, primarily due to $1.6 million on the Telestream Holdings Corporation and $0.9 million on the Honors Holdings, LLC (d/b/a Orange Theory) investments, respectively.

Current wording

PIK income decreased by $1.8 million for the three months ended September 30, 2025 from the three months ended September 30, 2024, primarily due to PIK income earned of $0.9 million on the MSI Information Services, Inc. and $0.4 million on the Telestream Holdings Corporation investments during the three months ended September 30, 2024. PIK income decreased $4.3 million for the nine months ended September 30, 2025 from the nine months ended September 30, 2024 due to PIK income earned in the nine-months ended September 30, 2024, primarily due to $2.0 million on the Telestream Holdings Corporation, $0.9 million on the Honors Holdings, LLC (d/b/a Orange Theory) and $0.9 million on the MSI Information Services investments, respectively.

Previous wording

We may invest in loans that contain a PIK interest rate provision where PIK interest is accrued at the contractual rates and added to loan principal on the reset dates to the extent such amounts are expected to be collected. For the three and six months ended June 30, 2025, PIK income as a percentage of total investment income was 3.5% and 3.6%, respectively. For the three and six months ended June 30, 2024, PIK income as a percentage of total investment income was 7.8% and 7.9%, respectively.

Current wording

We may invest in loans that contain a PIK interest rate provision where PIK interest is accrued at the contractual rates and added to loan principal on the reset dates to the extent such amounts are expected to be collected. For the three and nine months ended September 30,2025, PIK income as a percentage of total investment income was 2.4% and 3.2%, respectively. For the three and nine months ended September 30,2024, PIK income as a percentage of total investment income was 9.6% and 8.4%, respectively.

Previous wording

Fee and dividend income increased by $0.3 million for the three months ended June 30, 2025 from the three months ended June 30, 2024, due to higher non-recurring fee income. We expect to generate some level of non-recurring fee income during most quarters from prepayments, amendments and other sources. For the three and six months ended June 30, 2025, we earned non-recurring fee income of $0.7 million and $1.1 million, respectively. For the three and six months ended June 30, 2024, we earned non-recurring fee income of $0.3 million and $0.9 million, respectively.

Current wording

Fee and dividend income decreased by $0.1 million for the three months ended September 30, 2025 from the three months ended September 30, 2024. We expect to generate some level of non-recurring fee income during most quarters from prepayments, amendments and other sources. For the three and nine months ended September 30, 2025, we earned non-recurring fee income of $0.1 million and $1.1 million, respectively. For the three and nine months ended September 30, 2024, we earned non-recurring fee income of $0.2 million and $1.0 million, respectively.

Previous wording

Interest and dividend income from STRS JV decreased by $0.5 million and $1.6 million for the three and six months ended June 30, 2025 from the three months ended June 30, 2024, primarily attributable toa decreasein base rates and portfolio yields.

Current wording

Interest and dividend income from STRS JV decreased by $0.5 million and $2.1 million for the three and nine months ended September 30, 2025 from the the three months ended September 30, 2024, primarily attributable toa decreasein base rates and portfolio yields.

Previous wording

The following table summarizes our expenses for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table summarizes our expenses for the three and nine months ended September 30, 2025 and 2024:

Previous wording

Interest expense decreased by $1.0 million and $2.1 million for the three and six months ended June 30, 2025 from the three and six months ended June 30, 2024, primarily due to lower weighted average borrowing base and weighted average interest rate. For the three and six months ended June 30, 2025, the weighted average outstanding borrowings were $371.3 million and $370.6 million at a weighted average interest rate of 5.72% and 5.79%, respectively. For the three and six months ended June 30, 2024, the weighted average outstanding borrowings were $386.0 million and $392.0 million at a weighted average interest rate of 6.48% and 6.51%, respectively.

Current wording

Interest expense decreased by $1.1 million and $3.3 million for the three and nine months ended September 30, 2025 from the three and nine months ended September 30, 2024, primarily due to lower weighted average borrowing base and weighted average interest rate. For the three and nine months ended September 30, 2025, the weighted average outstanding borrowings were $367.6 million and $369.6 million at a weighted average interest rate of 5.54% and 5.70%, respectively. For the three and nine months ended September 30, 2024, the weighted average outstanding borrowings were $370.3 million and $384.7 million at a weighted average interest rate of 6.36% and 6.46%, respectively.

Previous wording

Base management fees decreased by $0.2 million and $0.5 million for the three and six months ended June 30, 2025 from the three months ended June 30, 2024, primarily due to lower gross assets.

Current wording

Base management fees decreased by $0.2 million and $0.7 million for the three and nine months ended September 30, 2025 from the three months ended September 30, 2024, primarily due to lower gross assets.

Previous wording

Performance-based incentive fees decreased by $0.7 million and $1.7 million for the three and six months ended June 30, 2025 from the three and six months ended June 30, 2024, primarily due to lower pre-incentive fee net investment income. For the three and six months ended June 30, 2025 and 2024, there were no capital gains incentive fee expenses incurred.

Current wording

Performance-based incentive fees decreased by $0.8 million and $2.4 million for the three and nine months ended September 30, 2025 from the three and nine months ended September 30, 2024, primarily due to lower pre-incentive fee net investment income. For the three and nine months ended September 30, 2025 and 2024, there were no capital gains incentive fee expenses incurred.

Previous wording

Excise tax was $0.2 million and $0.3 million for the three and six months ended June 30, 2025, respectively. Excise tax was $0.3 million and $0.6 million for the three and six months ended June 30, 2024, respectively. As of June 30, 2025 and December 31, 2024, we accrued a net federal excise tax expense of $0.4 million and $1.1 million, respectively.

Current wording

Excise tax was $0.2 million and $0.5 million for the three and nine months ended September 30, 2025, respectively. Excise tax was $0.3 million and $0.9 million for the three and nine months ended September 30, 2024, respectively. As of September 30, 2025 and December 31, 2024, we accrued a net federal excise tax expense of $0.6 million and $1.1 million, respectively.

Previous wording

The following table shows the breakdown of net realized gains and losses on investments for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table shows the breakdown of net realized gains and losses on investments for the three and nine months ended September 30, 2025 and 2024:

Previous wording

The following table shows the breakdown in the changes in unrealized appreciation and depreciation of investments for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table shows the breakdown in the changes in unrealized appreciation and depreciation of investments for the three and nine months ended September 30, 2025 and 2024:

Previous wording

Our board of directors may decide to issue common stock, such as through at-the-market offerings, direct placements or otherwise, to finance our operations rather than issuing debt or other senior securities. Any decision to sell shares below the then-current net asset value per share of our common stock is subject to stockholder approval and a determination by our board of directors that such issuance and sale is in our and our stockholders’ best interests. Any sale or other issuance of shares of our common stock at a price below net asset value per share results in immediate dilution to our stockholders’ interests in our common stock and a reduction in our net asset value per share. If we were to issue additional shares of our common stock during the next 12 months, we do not intend to issue shares below the then-current net asset value per share.

Current wording

Our board of directors may decide to issue common stock, such as through at-the-market offerings, direct placements or otherwise, to finance our operations rather than issuing debt or other senior securities. Any decision to sell shares below the then-current net asset value per share of our common stock is subject to stockholder approval and a determination by our board of directors that such issuance and sale is in our and our stockholders’ best interests. Any sale or other issuance of shares of our common stock at a price below net asset value per share results in immediate dilution to our stockholders’ interests in our common stock and a reduction in our net asset value per share. If we were to

Previous wording

financing transactions including the Credit Facility and the 2025 CLO Securitization. Restricted cash and cash equivalents and restricted foreign currency are held by the trustee for the payment of interest expense and principal on the outstanding borrowings or reinvestment into new assets. Restricted amounts that represent interest or fee income are transferred to unrestricted cash accounts by the trustees generally once a quarter after the payment of operating expenses and other amounts due under the respective credit, indenture or other governing agreements for the Company’s financing transactions as more fully discussed below, pertaining to the Credit Facility and the 2025 CLO Securitization*.*

Current wording

Restricted cash and cash equivalents and restricted foreign currency include amounts that are collected and held by the custodians or trutees who have been appointed as custodian of the assets securing certain of the Company’s financing transactions including the Credit Facility and the 2025 CLO Securitization. Restricted cash and cash equivalents and restricted foreign currency are held by the trustee for the payment of interest expense and principal on the outstanding borrowings or reinvestment into new assets. Restricted amounts that represent interest or fee income are transferred to unrestricted cash accounts by the trustees generally once a quarter after the payment of operating expenses and other amounts due under the respective credit, indenture or other governing agreements for the Company’s financing transactions as more fully discussed below, pertaining to the Credit Facility and the 2025 CLO Securitization*.*

Previous wording

We may become a party to financial instruments with off-balance sheet risk in the normal course of our business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve elements of liquidity and credit risk in excess of the amount recognized on the consolidated statements of assets and liabilities. As of June 30, 2025 and December 31, 2024, we had commitments to fund approximately $38.2 million and $26.4 million, respectively, of revolving lines of credit or delayed draw facilities to our portfolio companies. We reasonably believe that we have sufficient assets to adequately cover and allow us to satisfy our outstanding unfunded commitments.

Current wording

We may become a party to financial instruments with off-balance sheet risk in the normal course of our business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve elements of liquidity and credit risk in excess of the amount recognized on the consolidated statements of assets and liabilities. As of September 30, 2025 and December 31, 2024, we had commitments to fund approximately $30.3 million and $26.4 million, respectively, of revolving lines of credit or delayed draw facilities to our portfolio companies. We reasonably believe that we have sufficient assets to adequately cover and allow us to satisfy our outstanding unfunded commitments.

Previous wording

Our operating activities provided cash and cash equivalents of $14.7 million during the six months ended June 30, 2025, primarily from realizations and repayments on our investments, partially offset from acquisition of investments and cash used from the net change in working capital. Our financing activities used cash and cash equivalents of $9.3 million during the six months ended June 30, 2025, primarily due to payment of distributions to stockholders and repayment of net borrowings on the Credit Facility, offset with the issuance of the 2025 CLO Notes.

Current wording

Our operating activities provided cash and cash equivalents of $76.3 million during the nine months ended September 30, 2025, primarily from realizations and repayments on our investments, partially offset from acquisition of investments and cash used from the net change in working capital. Our financing activities used cash and cash equivalents of $58.2 million during the nine months ended September 30, 2025, primarily due to payment of distributions to stockholders and repayment of net borrowings on the Credit Facility, the 5.375% 2025 Notes, offset with the issuance of the 2025 CLO Notes.

Previous wording

Our operating activities provided cash and cash equivalents of $43.1 million during the six months ended June 30, 2024, primarily from the net proceeds received from realizations and repayments on our investments, partially offset by acquisition of investments and cash used from the net change in working capital. Our financing activities used cash and cash equivalents of $45.8 million during the six months ended June 30, 2024, primarily for repayments on the Credit Facility and the payment of distributions to stockholders.

Current wording

Our operating activities provided cash and cash equivalents of $57.7 million during the nine months ended September 30, 2024, primarily from the net proceeds received from realizations and repayments on our investments, partially offset by acquisition of investments and cash used from the net change in working capital. Our financing activities used cash and cash equivalents of $61.5 million during the nine months ended September 30, 2024, primarily for repayments on the Credit Facility and the payment of distributions to stockholders.

Previous wording

As of June 30, 2025, we had cash and cash equivalent resources of $33.3 million, including $22.7 million of restricted cash. As of June 30, 2025, we had approximately $100.0 million undrawn and available to be drawn under the Credit Facility based on the collateral and portfolio quality requirements stipulated in the related credit agreement.

Current wording

As of September 30, 2025, we had cash and cash equivalent resources of $45.9 million, including $36.4 million of restricted cash. As of September 30, 2025, we had approximately $100.0 million undrawn and available to be drawn under the Credit Facility based on the collateral and portfolio quality requirements stipulated in the related credit agreement. As of September 30, 2025, due to borrowing base limitations, approximately $23.4 million was available to be drawn under the Credit Facility based on these requirements.

Previous wording

In January 2019, we and STRS Ohio formed a joint venture, STRS JV, that invests primarily in senior secured loans, including first lien and second lien facilities, to performing lower middle market companies across a broad range of industries that typically carry a floating interest index rate based on SOFR, or an equivalent index rate and have a term of three to six years. STRS JV invests in portfolio companies in the same industries in which we may directly invest. STRS JV was formed as a Delaware LLC and is not consolidated by either us or STRS Ohio for financial reporting purposes. On July 19, 2019, STRS JV formally launched operations. As of June 30, 2025, STRS JV had total assets of $351.0 million. As of December 31, 2024, STRS JV had total assets of $309.1 million.

Current wording

In January 2019, we and STRS Ohio formed a joint venture, STRS JV, that invests primarily in senior secured loans, including first lien and second lien facilities, to performing lower middle market companies across a broad range of industries that typically carry a floating interest index rate based on SOFR, or an equivalent index rate and have a term of three to six years. STRS JV invests in portfolio companies in the same industries in which we may directly invest. STRS JV was formed as a Delaware LLC and is not consolidated by either us or STRS Ohio for financial reporting purposes. On July 19, 2019, STRS JV formally launched operations. As of September 30, 2025, STRS JV had total assets of $364.3 million. As of December 31, 2024, STRS JV had total assets of $309.1 million.

Previous wording

We provide capital to STRS JV in the form of LLC equity interests and subordinated notes. In February 2023, we increased our capital commitment to the STRS JV in the amount of an additional $15.0 million, bringing our total capital commitment to the STRS JV to $115.0 million, comprised of $92.0 million of subordinated notes and $23.0 million of LLC equity interests. We previously increased our capital commitment in February 2022 to the STRS JV in the amount of an additional $25.0 million, bringing our then total capital commitment to the STRS JV to $100.0 million, comprised of $80.0 million of subordinated notes and $20.0 million of LLC equity interests.

Current wording

We provide capital to STRS JV in the form of LLC equity interests and subordinated notes. In February 2023, we increased our capital commitment to the STRS JV in the amount of an additional $15.0 million, bringing our total capital commitment to the STRS JV to $115.0 million, comprised of $92.0 million of subordinated notes and $23.0 million of

Previous wording

As of both June 30, 2025 and December 31, 2024, we and STRS Ohio owned approximately 65.71% and 34.29%, respectively, of the LLC equity interests of STRS JV. As of both June 30, 2025 and December 31, 2024, our investment

Current wording

As of both September 30, 2025 and December 31, 2024, we and STRS Ohio owned approximately 65.71% and 34.29%, respectively, of the LLC equity interests of STRS JV. As of both September 30, 2025 and December 31, 2024, our investment in STRS JV consisted of equity contributions and subordinated note advance commitments of $23.0 million and $92.0 million, respectively, of which $1.9 million and $7.6 million were unfunded, respectively.

Previous wording

See Note 4 to our consolidated financial statements for further discussion on STRS JV’s portfolio and selected balance sheet information as of June 30, 2025 and December 31, 2024 and selected statement of operations information for the three and six months ended June 30, 2025 and 2024.

Current wording

See Note 4 to our consolidated financial statements for further discussion on STRS JV’s portfolio and selected balance sheet information as of September 30, 2025 and December 31, 2024 and selected statement of operations information for the three and nine months ended September 30, 2025 and 2024.

Previous wording

As of June 30, 2025, the Credit Facility provided for borrowings in an aggregate principal amount up to $100.0 million. As of June 30, 2025, there is no required minimum outstanding borrowings under the Credit Facility.

Current wording

As of September 30, 2025, the Credit Facility provided for borrowings in an aggregate principal amount up to $100.0 million. As of September 30, 2025, the required minimum outstanding borrowings under the Credit Facility were $25.0 million.

Previous wording

Advances under the Credit Facility are based on SOFR for USD denominated borrowings plus an annual spread of 2.25%. The Credit Facility bears interest at EurIBOR for EUR denominated borrowings, CORRA for CAD denominated borrowings and SONIA for GBP denominated borrowings, plus a spread of 2.25% on outstanding borrowings. Interest is payable quarterly in arrears. WhiteHorse Credit is required to pay a non-usage fee which accrues at 0.55% per annum on the average daily unused amount of the financing commitments, to the extent the aggregate principal amount available under the Credit Facility has not been borrowed. WhiteHorse Credit paid an upfront fee and incurred certain other customary costs and expenses in connection with obtaining the Credit Facility. Any amounts borrowed under the Credit Facility will mature, and all accrued and unpaid interest thereunder are due and payable, on January 17, 2030.

Current wording

Advances under the Credit Facility are based on SOFR for USD denominated borrowings plus an annual spread of 2.25%. The Credit Facility bears interest at EurIBOR for EUR denominated borrowings, CORRA for CAD denominated borrowings and SONIA for GBP denominated borrowings, plus a spread of 2.25% on outstanding borrowings. Interest is payable quarterly in arrears. WhiteHorse Credit is required to pay a non-usage fee which accrues at 0.55% per annum on the average daily unused amount of the financing commitments, to the extent the aggregate principal amount available under the Credit Facility has not been borrowed. WhiteHorse Credit is required to pay a minimum outstanding borrowing fee which accrues at 2.25% per annum on the average daily outstanding principal borrowing amounts below the minimum funding amount. WhiteHorse Credit paid an upfront fee and incurred certain other customary costs and expenses in connection with obtaining the Credit Facility. Any amounts borrowed under the Credit Facility will mature, and all accrued and unpaid interest thereunder are due and payable, on January 17, 2030.

Previous wording

The Credit Facility and the related documents require WhiteHorse Finance and WhiteHorse Credit to agree to make certain customary representations and to comply with customary affirmative and negative covenants. The Credit Facility also includes customary events of default for credit facilities of this nature, including breaches of representations, warranties or covenants by WhiteHorse Finance or WhiteHorse Credit, the occurrence of a change in control, or failure to maintain certain required ratios.

Current wording

also includes customary events of default for credit facilities of this nature, including breaches of representations, warranties or covenants by WhiteHorse Finance or WhiteHorse Credit, the occurrence of a change in control, or failure to maintain certain required ratios.

Previous wording

If we fail to perform our obligations under the Amended Loan Agreement or the related agreements, an event of default may occur, which could cause the Lender to accelerate all of the outstanding debt and other obligations under the

Current wording

If we fail to perform our obligations under the Amended Loan Agreement or the related agreements, an event of default may occur, which could cause the Lender to accelerate all of the outstanding debt and other obligations under the Credit Facility or to exercise other remedies under the Amended Loan Agreement. Any such developments could have a material adverse effect on our financial condition and results of operations.

Previous wording

As of June 30, 2025, there were no outstanding borrowings under the Credit Facility and, based on collateral and portfolio requirements stipulated in the Credit Facility agreement, approximately $100.0 million was available to be drawn on such date. The Credit Facility is secured by all of the assets of WhiteHorse Credit, which included loans with a fair value of $186.8 million as of June 30, 2025.

Current wording

As of September 30, 2025, there were no outstanding borrowings under the Credit Facility and, based on collateral and portfolio requirements stipulated in the Credit Facility agreement, approximately $100.0 million was available to be drawn on such date. The Credit Facility is secured by all of the assets of WhiteHorse Credit, which included loans with a fair value of $141.6 million as of September 30, 2025.

Previous wording

As of June 30, 2025, there were 38 portfolio companies with a total fair value of approximately $294.5 million** **securing the 2025 CLO Securitization. The pool of loans in the 2025 CLO Securitization must meet certain requirements, including asset mix and concentration, collateral coverage, term, agency rating, minimum coupon, minimum spread and sector diversity requirements.

Current wording

As of September 30, 2025, there were 35 portfolio companies with a total fair value of approximately $276.1 million** **securing the 2025 CLO Securitization. The pool of loans in the 2025 CLO Securitization must meet certain requirements, including asset mix and concentration, collateral coverage, term, agency rating, minimum coupon, minimum spread and sector diversity requirements.

Previous wording

On October 20, 2020, we entered into the 2025 Note Purchase Agreement to sell in a private offering $40 million of aggregate principal amount of unsecured notes to qualified institutional investors in reliance on Section 4(a)(2) of the Securities Act. Interest on the 5.375% 2025 Notes is payable semiannually on April 20 and October 20, at a fixed, annual rate of 5.375%. This interest rate is subject to increase (up to 6.375%) in the event that, subject to certain exceptions, the 5.375% 2025 Notes cease to have an investment grade rating. The 5.375% 2025 Notes mature on October 20, 2025, unless redeemed, purchased or prepaid prior to such date by us or our affiliates in accordance with their terms. The 5.375% 2025 Notes are general unsecured obligations that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness that we may issue. The closing of the transaction occurred on October 20, 2020. We used the net proceeds from this offering to redeem existing debt.

Current wording

On October 20, 2020, we entered into the 2025 Note Purchase Agreement to sell in a private offering $40 million of aggregate principal amount of unsecured notes to qualified institutional investors in reliance on Section 4(a)(2) of the Securities Act. Interest on the 5.375% 2025 Notes is payable semiannually on April 20 and October 20, at a fixed, annual rate of 5.375%. This interest rate is subject to increase (up to 6.375%) in the event that, subject to certain exceptions, the 5.375% 2025 Notes cease to have an investment grade rating. The 5.375% 2025 Notes mature on October 20, 2025, unless redeemed, purchased or prepaid prior to such date by us or our affiliates in accordance with their terms. The 5.375% 2025 Notes are general unsecured obligations that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness that we may issue. The closing of the transaction occurred on October 20, 2020. We used the net proceeds from this offering to redeem existing debt. On September 29, 2025 the 5.375% 2025 Notes were fully repaid by the Company.

Previous wording

On December 4, 2020, we entered into the 2027 Note Purchase Agreement to sell in a private offering $10 million of aggregate principal amount of unsecured notes to qualified institutional investors in reliance on Section 4(a)(2) of the Securities Act. Interest on the 5.625% 2027 Notes is payable semiannually on June 4 and December 4, at a fixed, annual rate of 5.625%. This interest rate is subject to increase (up to 6.625%) in the event that, subject to certain exceptions, the 5.625% 2027 Notes cease to have an investment grade rating. The 5.625% 2027 Notes mature on December 4, 2027, unless redeemed, purchased or prepaid prior to such date by us or our affiliates in accordance with their terms. The 5.625% 2027 Notes are general unsecured obligations that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness that we may issue. The closing of the transaction occurred on December 4, 2020.

Current wording

On December 4, 2020, we entered into the 2027 Note Purchase Agreement to sell in a private offering $10 million of aggregate principal amount of unsecured notes to qualified institutional investors in reliance on Section 4(a)(2) of the Securities Act. Interest on the 5.625% 2027 Notes is payable semiannually on June 4 and December 4, at a fixed, annual rate of 5.625%. This interest rate is subject to increase (up to 6.625%) in the event that, subject to certain exceptions, the

Previous wording

As of June 30, 2025, our investment portfolio consisted primarily of senior secured loans across 132 positions in 71 companies with an aggregate fair value of $629.3 million. As of June 30, 2025, the majority of our portfolio was comprised of senior secured loans to lower middle market borrowers and nearly all of those loans were variable-rate investments (primarily indexed to SOFR) with five fixed-rate loan investments representing 1.3% based on fair value. As of June 30, 2025, our portfolio had an average investment size of $4.0 million based on fair value and average debt investment size of $5.0 million, with investment sizes ranging from zero to $22.3 million and a weighted average effective yield of 9.8% (and a weighted average effective yield on income-producing debt investments of 11.9%).

Current wording

As of September 30, 2025, our investment portfolio consisted primarily of senior secured loans across 125 positions in 66 companies with an aggregate fair value of $568.4 million. As of September 30, 2025, the majority of our portfolio was comprised of senior secured loans to lower middle market borrowers and nearly all of those loans were variable-rate investments (primarily indexed to SOFR) with five fixed-rate loan investments representing 0.9% based on fair value. As of September 30, 2025, our portfolio had an average investment size of $3.8 million based on fair value and average debt investment size of $5.2 million, with investment sizes ranging from zero to $22.2 million and a weighted average effective yield of 9.5% (and a weighted average effective yield on income-producing debt investments of 11.6%).

Previous wording

As of December 31, 2024, our investment portfolio consisted primarily of senior secured loans across 127 positions in 71 companies with an aggregate fair value of $642.2 million. As of December 31, 2024, the majority of our portfolio was comprised of senior secured loans to lower middle market borrowers and nearly all of those loans were variable-rate investments, primarily indexed to SOFR, with fixed-rate loan investments representing 1.3% based on fair value. As of December 31, 2024, our portfolio had an average investment size of $4.3 million based on fair value and average debt investment size of $5.5 million, with investment sizes ranging from zero to $22.4 million and a weighted average effective yield of 10.2% (and a weighted average effective yield on income-producing debt investments of 12.5%).

Current wording

As of December 31, 2024, our investment portfolio consisted primarily of senior secured loans across 127 positions in 71 companies with an aggregate fair value of $642.2 million. As of December 31, 2024, the majority of our portfolio was comprised of senior secured loans to lower middle market borrowers and nearly all of those loans were variable-rate investments, primarily indexed to SOFR, with fixed-rate loan investments representing 1.3% based on fair value. As of

Previous wording

For the six months ended June 30, 2025, we invested $90.5 million in new and existing portfolio companies, offset by repayments and sales of $100.5 million. Proceeds from sales totaled $42.5 million while repayments included $3.1 million of scheduled repayments and $54.9 million of unscheduled repayments.

Current wording

For the nine months ended September 30, 2025, we invested $112.4 million in new and existing portfolio companies, offset by repayments and sales of $177.3 million. Proceeds from sales totaled $57.3 million while repayments included $30.3 million of scheduled repayments and $89.7 million of unscheduled repayments.

Previous wording

For the six months ended June 30, 2024, we invested $116.4 million in new and existing portfolio companies, offset by repayments and sales of $152.0 million. Proceeds from sales totaled $57.2 million while repayments included $3.6 million of scheduled repayments and $91.2 million of unscheduled repayments.

Current wording

For the nine months ended September 30, 2024, we invested $169.3 million in new and existing portfolio companies, offset by repayments and sales of $198.1 million. Proceeds from sales totaled $72.9 million while repayments included $5.0 million of scheduled repayments and $120.2 million of unscheduled repayments.

Previous wording

All investments are initially assigned a rating of 2, as this grade represents a company that is meeting initial expectations with regard to performance and outlook. A rating may be improved to a 1 if, in the opinion of our investment adviser, a portfolio company’s risk of loss has been reduced relative to initial expectations. An investment will be assigned a rating of 3 if the risk of loss has increased relative to initial expectations and will be assigned a rating

Current wording

All investments are initially assigned a rating of 2, as this grade represents a company that is meeting initial expectations with regard to performance and outlook. A rating may be improved to a 1 if, in the opinion of our investment adviser, a portfolio company’s risk of loss has been reduced relative to initial expectations. An investment will be assigned a rating of 3 if the risk of loss has increased relative to initial expectations and will be assigned a rating of 4 if our investment principal is at a material risk of not being fully repaid. A rating of 5 indicates an investment is in payment default and has significant risk of not receiving full repayment.