Investcorp Credit Management BDC, Inc.

Previous wording

CM Investment Partners LLC (the “Adviser”) serves as our investment adviser. On August 30, 2019, Investcorp Credit Management US LLC (“Investcorp”) acquired an approximate 76% ownership interest in the Adviser through the acquisition of the interests held by Stifel Venture Corp. (“Stifel”) and certain funds managed by Cyrus Capital and through a direct purchase of equity from the Adviser. On August 31, 2023, Investcorp acquired approximately an additional 7% ownership interest in the Adviser. On December 12, 2024, Investcorp assigned its ownership of the Adviser to IVC Credit Management Financing, LLC its parent entity and the entity that manages Investcorp’s US credit management regulated entities. Investcorp and its credit advisory affiliates are a leading global credit investment platform with assets under management of $21.5 billion as of June 30, 2025. Investcorp and its credit advisory affiliates manage funds which invest primarily in senior secured corporate debt issued by mid and large-cap corporations in Western Europe and the United States. The business has a strong track record of consistent performance and growth, employing approximately 50 investment professionals in London and New York. Investcorp is a subsidiary of Investcorp Holdings B.S.C. (“Investcorp Holdings”). Investcorp Holdings and its consolidated subsidiaries, including Investcorp, are referred to as “Investcorp Group”. Investcorp Group is a global provider and manager of alternative investments, offering such investments to its high-net-worth private and institutional clients on a global basis.

Current wording

CM Investment Partners LLC (the “Adviser”) serves as our investment adviser. On August 30, 2019, Investcorp Credit Management US LLC (“Investcorp”) acquired an approximate 76% ownership interest in the Adviser through the acquisition of the interests held by Stifel Venture Corp. (“Stifel”) and certain funds managed by Cyrus Capital and through a direct purchase of equity from the Adviser. On August 31, 2023, Investcorp acquired approximately an additional 7% ownership interest in the Adviser. On December 12, 2024, Investcorp assigned its ownership of the Adviser to IVC Credit Management Financing, LLC its parent entity and the entity that manages Investcorp’s US credit management regulated entities. Investcorp and its credit advisory affiliates are a leading global credit investment platform with assets under management of $21.2 billion as of September 30, 2025. Investcorp and its credit advisory affiliates manage funds which invest primarily in senior secured corporate debt issued by mid and large-cap corporations in Western Europe and the United States. The business has a strong track record of consistent performance and growth, employing approximately 50 investment professionals in London and New York. Investcorp is a subsidiary of Investcorp Holdings B.S.C. (“Investcorp Holdings”). Investcorp Holdings and its consolidated subsidiaries, including Investcorp, are referred to as “Investcorp Group”. Investcorp Group is a global provider and manager of alternative investments, offering such investments to its high-net-worth private and institutional clients on a global basis.

Previous wording

The current inflationary environment and uncertainty as to the probability of, and length and depth of a global recession could affect our portfolio companies. Government spending, government policies, including recent increases in certain interest rates by the U.S. Federal Reserve and other global central banks, the failures of certain regional banks earlier this year and the potential for disruptions in the availability of credit in the United States and elsewhere, in conjunction with other factors, including those described elsewhere in this Quarterly Report and in other filings we have made with the SEC, could affect our portfolio companies, our financial condition and our results of operations. We will continue to monitor the evolving market environment. In these circumstances, developments outside our control could require us to adjust our plan of operations and could impact our financial condition, results of operations or cash flows in the future. Despite these factors, we believe we and our portfolio are well positioned to manage the current environment. For additional information, see Part I, Item 1A. Risk Factors in our most recently filed Transition Report on Form 10-KT, as well as the risk factors listed in our subsequently filed Quarterly Reports on Form 10-Q.

Current wording

The current inflationary environment and uncertainty as to the probability of, and length and depth of a global recession could affect our portfolio companies. Government spending, government policies and the potential for disruptions in the availability of credit in the United States and elsewhere, in conjunction with other factors, including those described elsewhere in this Quarterly Report and in other filings we have made with the SEC, could affect our portfolio companies, our financial condition and our results of operations. We will continue to monitor the evolving market environment. In these circumstances, developments outside our control could require us to adjust our plan of operations and could impact our financial condition, results of operations or cash flows in the future. Despite these factors, we believe we and our portfolio are well positioned to manage the current environment. For additional information, see Part I, Item 1A. Risk Factors in our most recently filed Transition Report on Form 10-KT, as well as the risk factors listed in our subsequently filed Quarterly Reports on Form 10-Q.

Previous wording

As of June 30, 2025, our investment portfolio, valued at fair value in accordance with our board of directors-approved valuation policy, represented 91.1% of our total assets, as compared to 92.6% of our total assets as of December 31, 2024.

Current wording

As of September 30, 2025, our investment portfolio, valued at fair value in accordance with our board of directors-approved valuation policy, represented 93.1% of our total assets, as compared to 92.6% of our total assets as of December 31, 2024.

Previous wording

As of June 30, 2025 and December 31, 2024, there were $70.5 million and $58.5 million in borrowings outstanding under the Capital One Revolving Financing, respectively.

Current wording

As of September 30, 2025 and December 31, 2024, there were $63.5 million and $58.5 million in borrowings outstanding under the Capital One Revolving Financing, respectively.

Previous wording

The 2026 Notes may be redeemed in whole or in part at any time or from time to time at our option, upon not less than 30 days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a redemption price (as determined by us) equal to the greater of the following amounts, plus, in each case, accrued and unpaid interest to, but excluding, the redemption date: (1) 100% of the principal amount of the 2026 Notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest (exclusive of accrued and unpaid interest to the date of redemption) on the 2026 Notes to be redeemed, discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) using the applicable Treasury Rate (as defined in the 2026 Notes Indenture (as defined below)) plus 50 basis points; provided, however, that if we redeem any 2026 Notes on or after January 1, 2026 (the date falling three months prior to the maturity date of the 2026 Notes), the redemption price for the 2026 Notes will be equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption; provided, further, that no such partial redemption shall reduce the portion of the principal amount of a 2026 Note not redeemed to less than $2,000. Interest on the 2026 Notes is payable semi-annually on April 1 and October 1 of each year, commencing October 1, 2021. We may from time to time repurchase 2026 Notes in accordance with the 1940 Act and the rules promulgated thereunder. As of June 30, 2025 and December 31, 2024, the outstanding principal balance of the 2026 Notes was approximately $65.0 million.

Current wording

The 2026 Notes may be redeemed in whole or in part at any time or from time to time at our option, upon not less than 30 days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a redemption price (as determined by us) equal to the greater of the following amounts, plus, in each case, accrued and unpaid interest to, but excluding, the redemption date: (1) 100% of the principal amount of the 2026 Notes to be redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest (exclusive of accrued and unpaid interest to the date of redemption) on the 2026 Notes to be redeemed, discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) using the applicable Treasury Rate (as defined in the 2026 Notes Indenture (as defined below)) plus 50 basis points; provided, however, that if we redeem any 2026 Notes on or after January 1, 2026 (the date falling three months prior to the maturity date of the 2026 Notes), the redemption price for the 2026 Notes will be equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption; provided, further, that no such partial redemption shall reduce the portion of the principal amount of a 2026 Note not redeemed to less than $2,000. Interest on the 2026 Notes is payable semi-annually on April 1 and October 1 of each year, commencing October 1, 2021. We may from time to time repurchase 2026 Notes in accordance with the 1940 Act and the rules promulgated thereunder. As of September 30, 2025 and December 31, 2024, the outstanding principal balance of the 2026 Notes was $65.0 million.

Previous wording

As of June 30, 2025, our investment portfolio of $204.1 million (at fair value) consisted of debt and equity investments in 43 portfolio companies, of which 79.23% were first lien investments and 20.77% were equities, warrants and other positions. At June 30, 2025, our average and largest portfolio company investment at fair value was $4.7 million and $13.6 million, respectively.

Current wording

As of September 30, 2025, our investment portfolio of $196.1 million (at fair value) consisted of debt and equity investments in 41 portfolio companies, of which 78.32% were first lien investments and 21.68% were equities, warrants and other positions. At September 30, 2025, our average and largest portfolio company investment at fair value was $4.8 million and $13.4 million, respectively.

Previous wording

As of June 30, 2025 and December 31, 2024, our average total yield of debt and income producing securities weighted by amortized cost (which includes interest income and amortization of fees and discounts) was 10.63% and 10.60% respectively. As of June 30, 2025 and December 31, 2024, our average total yield on the total portfolio weighted by amortized cost (which includes interest income and amortization of fees and discounts) was 8.60% and 8.72%, respectively. The weighted average total yield was computed using an internal rate of return calculation of our debt investments based on contractual cash flows, including interest and amortization payments, and, for floating rate investments, the spot SOFR, as applicable, as of June 30, 2025, of all of our debt investments. The weighted average total yield of our debt investments is not the same as a return on investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before payment of all of our fees and expenses, including any sales load paid in connection with an offering of our securities. There can be no assurance that the weighted average total yield will remain at its current level.

Current wording

As of September 30, 2025 and December 31, 2024, our average total yield of debt and income producing securities weighted by amortized cost (which includes interest income and amortization of fees and discounts) was 9.97% and 10.60% respectively. As of September 30, 2025 and December 31, 2024, our average total yield on the total portfolio weighted by amortized cost (which includes interest income and amortization of fees and discounts) was 8.01% and 8.72%, respectively. The weighted average total yield was computed using an internal rate of return calculation of our debt investments based on contractual cash flows, including interest and amortization payments, and, for floating rate investments, the spot SOFR, as applicable, as of September 30, 2025, of all of our debt investments. The weighted average total yield of our debt investments is not the same as a return on investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before payment of all of our fees and expenses, including any sales load paid in connection with an offering of our securities. There can be no assurance that the weighted average total yield will remain at its current level.

Previous wording

During the six months ended June 30, 2025, we made investments in two new portfolio companies and six existing portfolio companies. Investments in new and existing portfolio companies, to which we were not previously contractually committed to provide financial support, totaled approximately $24.1 million. Of these investments, 97.20% consisted of first lien investments and 2.80% were in equity, warrants, and other investments.

Current wording

During the nine months ended September 30, 2025, we made investments in two new portfolio companies and seven existing portfolio companies. Investments in new and existing portfolio companies, to which we were not previously contractually committed to provide financial support, totaled approximately $24.1 million. Of these investments, 97.10% consisted of first lien investments and 2.90% were in equity, warrants, and other investments.

Previous wording

Investment income, attributable primarily to interest and fees on our debt investments, for the three months ended June 30, 2025 decreased to $4.5 million from $5.1 million for the three months ended June 30, 2024 primarily related to a decrease in interest income due to lower index and interest rates and a decrease in PIK interest income primarily related to lower PIK rates and principal balances on our investments in Crafty Apes, LLC subsequent to the restructuring in November 2024, partially offset by increased PIK dividend income related to Fusion Connect Series A Preferred Stock and increased other fee income primarily related to prepayment fees on our investments in 4L Technologies, Inc.

Current wording

Investment income, attributable primarily to interest and fees on our debt investments, for the three months ended September 30, 2025 decreased to $4.4 million from $6.8 million for the three months ended September 30, 2024 primarily due to a decrease in interest income due to lower index and interest rates in 2025 compared to 2024, a decrease in PIK interest income primarily related to the recognition of PIK interest income for the period January 2024 to July 2024 for the Klein Hersh, LLC Term Loan - Last Out during the three months ended September 30, 2024 after it was removed from non-accrual status and lower PIK rates, and a decrease in PIK dividend income related to Fusion Connect, Inc. - Series A Preferred.

Previous wording

Expenses for the three months ended June 30, 2025 decreased to $3.7 million compared to $3.9 million for the three months ended June 30, 2024 primarily due to a decrease in interest expense due to lower index rates in 2025 compared to 2024 and write offs of deferred incentive fees in 2025 as a result of restructurings related to our investments in Crafty Apes, American Nuts and Procera Networks/Sandvine.

Current wording

Expenses for the three months ended September 30, 2025 decreased to $3.8 million compared to $4.3 million for the three months ended September 30, 2024 primarily due to a decrease in interest expense due to lower index rates in 2025 compared to 2024, a decrease in income-based incentive fees due to write offs of deferred incentive fees in 2025 as a result of restructurings related to our investments in Crafty Apes, American Nuts, and Procera Networks/Sandvine, and a decrease in professional fees due to lower accrued audit and legal fees.

Previous wording

Net investment income before taxes decreased to $0.8 million for the three months ended June 30, 2025 from $1.3 million for the three months ended June 30, 2024 primarily due to a decrease in interest income due to lower index and interest rates in 2025 compared to 2024, a decrease in PIK interest income primarily related to lower PIK rates and principal balances on our investments in Crafty Apes, LLC subsequent to the restructuring in November 2024, partially offset by a decrease in interest expense due to lower index rates in 2025 compared to 2024, a decrease in base management fees, increased PIK dividend income related to Fusion Connect Series A Preferred Stock, and increased other fee income related to prepayment fee income on our investments in 4L Technologies, Inc.

Current wording

Net investment income before taxes decreased to $0.6 million for the three months ended September 30, 2025 from $2.5 million for the three months ended September 30, 2024 primarily due to a decrease in interest income due to lower index and interest rates in 2025 compared to 2024, a decrease in PIK interest income primarily related to the recognition of PIK interest income for the period January 2024 to July 2024 for the Klein Hersh, LLC Term Loan - Last Out during the three months ended September 30, 2024 after it was removed from non-accrual status and lower PIK rates, and a decrease in PIK dividend income related to Fusion Connect, Inc. - Series A Preferred, partially offset by a decrease in interest expense due to lower index rates in 2025 compared to 2024, a decrease in income-based incentive fees due to write offs of deferred incentive fees in 2025 as a result of restructurings related to our investments in Crafty Apes, American Nuts, and Procera Networks/Sandvine, and a decrease in professional fees due to lower accrued audit and legal fees.

Previous wording

There was a net realized loss on investments of $1.8 million for the three months ended June 30, 2024 primarily due to the realization of losses from the restructuring of our investments in Sandvine Corporation.

Current wording

There was a net realized loss on investments of $4.1 million for the three months ended September 30, 2024 primarily due to the realization of losses associated with the restructuring of our investment in Klein Hersh, LLC.

Previous wording

We recorded a net change in unrealized depreciation of $3.2 million for the three months ended June 30, 2025 primarily due to changes in marks for ArborWorks, LLC A-1 - Preferred Units, CareerBuilder, LLC Term Loan B3, Fusion Connect, Inc. - Common Stock, 4L Technologies, Inc. - Preferred Stock, Crafty Apes LLC - Common Stock, Klein Hersh, LLC Term Loan - Last Out, and LABL, Inc. Term Loan B and due to the realization of previously unrealized gains resulting from the sale of our investment in Investcorp Transformer Aggregator LP - Equity Interest.

Current wording

We recorded a net change in unrealized depreciation of $1.8 million for the three months ended September 30, 2025 primarily due to changes in marks for Advanced Solutions International - Preferred Stock, ArborWorks, LLC A-1 - Preferred Units, CareerBuilder, LLC Term Loan B3, Fusion Connect, Inc. - Series A Preferred, LABL, Inc. Term Loan B, and investments in Techniplas Foreign Holdco LP.

Previous wording

Investment income, attributable primarily to interest and fees on our debt investments, for the six months ended June 30, 2025 decreased to $8.9 million from $11.7 million for the six months ended June 30, 2024 primarily due to a decrease in interest income due to lower index and interest rates and a decrease in PIK interest income primarily related to lower PIK rates and principal balances on our investments in Crafty Apes, LLC subsequent to the restructuring in November 2024, partially offset by increased PIK dividend income related to Fusion Connect Series A Preferred Stock and increased other fee income related to prepayment fee income on our investments in 4L Technologies, Inc.

Current wording

Investment income, attributable primarily to interest and fees on our debt investments, for the nine months ended September 30, 2025 decreased to $13.3 million from $18.6 million for the nine months ended September 30, 2024 primarily due to a decrease in interest income due to lower index and interest rates in 2025 compared to 2024, a decrease in PIK interest income primarily related to the recognition of PIK interest income for the period January 2024 to July 2024 for the Klein Hersh, LLC Term Loan - Last Out during the nine months ended September 30, 2024 after it was removed from non-accrual status and lower PIK rates, and a decrease in PIK dividend income related to Fusion Connect, Inc. - Series A Preferred, partially offset by increased other fee income related to prepayment fee income on our investment in the 4L Technologies, Inc. Term Loan.

Previous wording

Expenses for the six months ended June 30, 2025 decreased to $7.4 million compared to $8.3 million for the six months ended June 30, 2024 primarily due to a decrease in interest expense due to lower index rates in 2025 compared to 2024, a decrease in base management fees, a decrease in other expenses due to the sale and write off of our investments in 1888 Industrial Services, LLC in March 2024 and write offs of deferred incentive fees in 2025 as a result of restructurings related to our investments in Crafty Apes, American Nuts and Procera Networks/Sandvine.

Current wording

Expenses for the nine months ended September 30, 2025 decreased to $11.2 million compared to $12.6 million for the nine months ended September 30, 2024 primarily due to a decrease in interest expense due to lower index rates in 2025 compared to 2024, a decrease in base management fees, a decrease in income-based incentive fees due to write offs of deferred incentive fees in 2025 as a result of restructurings related to our investments in Crafty Apes, American Nuts, and Procera Networks/Sandvine, a decrease in professional fees due to lower accrued audit and legal fees, and a decrease in other expenses due to the sale and write off of our investments in 1888 Industrial Services, LLC in March 2024.

Previous wording

There was a net realized gain on investments of $0.6 million for the six months ended June 30, 2025 primarily due to the realization of a gain associated with the sale of our investment in Investcorp Transformer Aggregator LP - Equity Interest, partially offset by the realization of losses associated with the restructuring of our investments in American Nuts Holdings, LLC and a write off of our investment in American Teleconferencing Services, Ltd.

Current wording

There was a net realized gain on investments of $0.6 million for the nine months ended September 30, 2025 primarily due to the realization of a gain associated with the sale of our investment in Investcorp Transformer Aggregator LP - Equity Interest, partially offset by the realization of losses associated with the restructuring of our investments in American Nuts Holdings, LLC and a write off of our investment in American Teleconferencing Services, Ltd.

Previous wording

There was a net realized loss on investments of $8.1 million for the six months ended June 30, 2024 primarily due to the realization of losses from the restructuring of our investments in Sandvine Corporation and the realization of losses associated with the sale and write off of our investments in 1888 Industrial Services, LLC.

Current wording

There was a net realized loss on investments of $12.2 million for the nine months ended September 30, 2024 primarily due to the realization of losses associated with the restructuring of our investment in Klein Hersh, LLC, the realization of losses from the restructuring of our investments in Sandvine Corporation, and the realization of losses associated with the sale and write off of our investments in 1888 Industrial Services, LLC.

Previous wording

We recorded a net change in unrealized depreciation of $17,023 for the six months ended June 30, 2025 primarily due to changes in marks for ArborWorks, LLC A-1 - Preferred Units, Crafty Apes LLC - Common Stock, Klein Hersh, LLC Term Loan - Last Out, Bioplan USA, Inc. - Common Stock, and CareerBuilder, LLC Term Loan B3, the realization of previously unrealized gains resulting from the sale of our investment in Investcorp Transformer Aggregator LP - Equity Interest and the realization of previously unrealized losses resulting from the restructuring of our investments in American Nuts Holdings, LLC and a write off of our investment in American Teleconferencing Services, Ltd.

Current wording

We recorded a net change in unrealized depreciation of $1.8 million for the nine months ended September 30, 2025 primarily due to changes in marks for Advanced Solutions International - Preferred Stock, American Nuts Holdings, LLC Class A Units, ArborWorks, LLC A-1 - Preferred Units, Bioplan USA, Inc. - Common Stock, CareerBuilder, LLC Term Loan B3, Crafty Apes LLC - Common Stock, Fusion Connect, Inc. - Series A Preferred, Klein Hersh, LLC Term Loan - Last Out, LABL, Inc. Term Loan B, and investments in Techniplas Foreign Holdco LP, the realization of previously unrealized gains resulting from the sale of our investment in Investcorp Transformer Aggregator LP - Equity Interest, the realization of previously unrealized losses resulting from the restructuring of our investments in American Nuts Holdings, LLC, and a write off of our investment in American Teleconferencing Services, Ltd.

Previous wording

During the six months ended June 30, 2024, we recorded a net change in unrealized appreciation of $5.2 million primarily due to changes in marks for ArborWorks, LLC A-1 Preferred, Klein Hersh, LLC Term Loan, Techniplas Foreign Holdco LP - Equity Interest, Bioplan USA, Inc. - Common Stock, CareerBuilder, LLC Term Loan B3, INW Manufacturing, LLC Term Loan, and Discovery Behavioral Health, LLC - Preferred Equity and due to the realization of previously unrealized losses resulting from the sale and write off of our investments in 1888 Industrial Services, LLC and the restructuring of our investments in Sandvine Corporation.

Current wording

We recorded a net change in unrealized appreciation of $13.5 million for the nine months ended September 30, 2024 primarily due to changes in marks for ArborWorks, LLC A-1 Preferred, Bioplan USA, Inc. - Common Stock, CareerBuilder, LLC Term Loan B3, Crafty Apes, LLC Term Loan, Discovery Behavioral Health, LLC - Preferred Equity, INW Manufacturing, LLC Term Loan, Klein Hersh, LLC Term Loan, Techniplas Foreign Holdco LP - Equity Interest, and Techniplas Foreign Holdco LP Term Loan, the restructuring of our investments in Sandvine Corporation, and the realization of previously unrealized losses resulting from the sale and write off of our investments in 1888 Industrial Services, LLC.

Previous wording

Our primary liquidity needs include interest and principal repayments under the Capital One Revolving Financing, interest payments on the 2026 Notes, our unfunded loan commitments (if any), investments in portfolio companies, dividend distributions to our stockholders and operating expenses. We believe that our current cash on hand and our anticipated cash flows from operations, including from contractual monthly portfolio company payments and prepayments, will be adequate to meet our cash needs for our daily operations. This “Liquidity and Capital Resources” section should be read in conjunction with “Market Developments” above and the risk factors referenced in our most recent Transition Report on Form 10-KT.

Current wording

Our primary liquidity needs include interest and principal repayments under the Capital One Revolving Financing, interest payments on the 2026 Notes, our unfunded loan commitments (if any), investments in portfolio companies, dividend distributions to our stockholders and operating expenses. We believe that our current cash on hand and our anticipated cash flows from operations, including from contractual monthly portfolio company payments and prepayments, will be adequate to meet our cash needs for our daily operations.

Previous wording

For the six months ended June 30, 2025, our cash balance increased by $5.2 million. During that period, $1.6 million in net cash was used in operating activities, primarily due to investments of $27.7 million in portfolio companies, offset by proceeds from repayment and sale of investments in portfolio companies of $17.5 million. During that same period, $6.9 million in net cash was provided by financing activities, resulting primarily from proceeds of $18.5 million from borrowings under the Capital One Revolving Financing, repayments of $6.5 million under the Capital One Revolving Financing, distributions of $5.1 million to our stockholders, and payments of $0 for deferred financing costs.

Current wording

For the nine months ended September 30, 2025, our cash balance decreased by $0.5 million. During that period, $0.4 million in net cash was used in operating activities, primarily for investments of $28.4 million in portfolio companies, offset by proceeds from repayments and sales of investments in portfolio companies of $25.1 million. During that same period, $0.1 million in net cash was used in financing activities, primarily from borrowings of $18.5 million under the Capital One Revolving Financing, repayments of $13.5 million under the Capital One Revolving Financing, and distributions of $5.1 million to our stockholders.

Previous wording

As of June 30, 2025, we had $2.9 million of cash as well as $14.4 million in restricted cash and $29.5 million of capacity under the Capital One Revolving Financing. As of June 30, 2025, we had approximately $135.5 million of senior securities outstanding at par value and our asset coverage ratio based on par value was 156.1%. We intend to generate additional cash primarily from future offerings of equity and/or debt securities, future borrowings or debt issuances, as well as cash flows from operations, including income earned from investments in our portfolio companies and, to a lesser extent, from the temporary investment of cash in U.S. government securities and other high-quality debt investments that mature in one year or less.

Current wording

As of September 30, 2025, we had $3.9 million of cash as well as $7.8 million in restricted cash and $36.5 million of capacity under the Capital One Revolving Financing. As of September 30, 2025, we had $128.5 million of senior securities outstanding at par value and our asset coverage ratio based on par value was 156.6%. We intend to generate additional cash primarily from future offerings of equity and/or debt securities, future borrowings or debt issuances, as well as cash flows from operations, including income earned from investments in our portfolio companies and, to a lesser extent, from the temporary investment of cash in U.S. government securities and other high-quality debt investments that mature in one year or less.

Previous wording

On May 2, 2018, our board of directors, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) of the board of directors, approved the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act. As a result, effective May 2, 2019, our applicable minimum asset coverage ratio under the 1940 Act was decreased to 150% from 200%. Thus, we are permitted under the 1940 Act, under specified conditions, to issue multiple classes of debt and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 150% immediately after each such issuance. As of June 30, 2025, our asset coverage for borrowed amounts was 156.1%.

Current wording

On May 2, 2018, our board of directors, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) of the board of directors, approved the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act. As a result, effective May 2, 2019, our applicable minimum asset coverage ratio under the 1940 Act was decreased to 150% from 200%. Thus, we are permitted under the 1940 Act, under specified conditions, to issue multiple classes of debt and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 150% immediately after each such issuance. As of September 30, 2025, our asset coverage for borrowed amounts was 156.6%.

Previous wording

Subsequent to June 30, 2025 and through August 12, 2025, the Company invested a total of $0.2 million, at cost, which included investments in two existing portfolio companies. As of August 12, 2025, the Company had investments in 43 portfolio companies.

Current wording

Subsequent to September 30, 2025 and through November 12, 2025, the Company invested a total of $2.5 million, at cost, which included investments in three existing portfolio companies, and received approximately $11.1 million from the repayment of three positions, the sale of one position, and the cancellation of warrants in one position. As of November 12, 2025, the Company had investments in 37 portfolio companies.