TriplePoint Venture Growth BDC Corp

Previous wording

As of June 30, 2024, we had 305 investments in 105 companies. Our investments included 136 debt investments, 109 warrant investments, and 60 direct equity and related investments. As of June 30, 2024, the aggregate cost and fair value of these investments were $745.6 million and $713.8 million, respectively. As of June 30, 2024, six of our portfolio companies were publicly traded. As of June 30, 2024, the 136 debt investments had an aggregate fair value of $615.7 million and a weighted average loan to enterprise value ratio at the time of underwriting of 7.8%. Enterprise value of a portfolio company is estimated based on information available, including any information regarding the most recent rounds of equity funding, at the time of origination.

Current wording

As of September 30, 2024, we had 309 investments in 107 companies. Our investments included 137 debt investments, 110 warrant investments, and 62 direct equity and related investments. As of September 30, 2024, the aggregate cost and fair value of these investments were $739.0 million and $721.0 million, respectively. As of September 30, 2024, six of our portfolio companies were publicly traded. As of September 30, 2024, the 137 debt investments had an aggregate fair value of $604.7 million and a weighted average loan to enterprise value ratio at the time of underwriting of 7.6%. Enterprise value of a portfolio company is estimated based on information available, including any information regarding the most recent rounds of equity funding, at the time of origination.

Previous wording

Growth capital loans in which the borrower held a term loan facility, with or without an accompanying revolving loan, in priority to our senior lien represent 13.8% and 14.5% of our debt investments at fair value as of June 30, 2024 and December 31, 2023, respectively.

Current wording

Growth capital loans in which the borrower held a term loan facility, with or without an accompanying revolving loan, in priority to our senior lien represent 8.8% and 14.5% of our debt investments at fair value as of September 30, 2024 and December 31, 2023, respectively.

Previous wording

During the three months ended June 30, 2024, we entered into debt commitments with two new portfolio companies and three existing portfolio companies totaling $52.0 million, funded debt investments to five portfolio companies for $38.7 million in principal value and acquired warrant investments representing $0.3 million at fair value. Debt investments funded during the three months ended June 30, 2024 carried a weighted average annualized portfolio yield of 15.5% at origination.

Current wording

During the three months ended September 30, 2023, we entered into debt commitments with one new portfolio company and two existing portfolio companies totaling $5.6 million, funded debt investments to five portfolio companies for $12.7 million in principal value and acquired warrant investments representing $1.3 million at fair value. Debt investments funded during the three months ended September 30, 2023 carried a weighted average annualized portfolio yield of 14.2% at origination.

Previous wording

During the three months ended June 30, 2024, we received $51.2 million of principal prepayments and $27.9 million of scheduled principal amortization. During the six months ended June 30, 2024, we received $82.1 million of principal prepayments and $34.7 million of scheduled principal amortization.

Current wording

During the three months ended September 30, 2024, we received $35.7 million of principal prepayments and $4.6 million of scheduled principal amortization. During the nine months ended September 30, 2024, we received $117.8 million of principal prepayments and $39.3 million of scheduled principal amortization.

Previous wording

During the three months ended June 30, 2023, we received $33.8 million of principal prepayments and $1.7 million of scheduled principal amortization. During the six months ended June 30, 2023, we received $33.8 million of principal prepayments, $3.4 million of early repayments and $18.3 million of scheduled principal amortization.

Current wording

During the three months ended September 30, 2023, we received $37.3 million of principal prepayments, $15.0 million of early repayments and $20.0 million of scheduled principal amortization. During the nine months ended September 30, 2023, we received $71.0 million of principal prepayments, $18.4 million of early repayments and $38.3 million of scheduled principal amortization.

Previous wording

The following table shows the total portfolio investment activity for the three and six months ended June 30, 2024 and 2023:

Current wording

The following table shows the total portfolio investment activity for the three and nine months ended September 30, 2024 and 2023:

Previous wording

The following table shows the debt commitments, fundings of debt investments (principal balance) and equity investments, and non-binding term sheet activity for the three and six months ended June 30, 2024 and 2023:

Current wording

The following table shows the debt commitments, fundings of debt investments (principal balance) and equity investments, and non-binding term sheet activity for the three and nine months ended September 30, 2024 and 2023:

Previous wording

As of June 30, 2024 and December 31, 2023, the weighted average investment ranking of our debt investment portfolio was 2.24 and 2.14, respectively. During the three months ended June 30, 2024, portfolio company credit category changes, excluding fundings and repayments, consisted of the following: one portfolio company with a principal balance of $25.0 million was upgraded from White (2) to Clear (1), one portfolio company with a principal balance of $4.7 million was downgraded from Clear (1) to White (2), one portfolio company with a principal balance of $13.0 million was downgraded from White (2) to Yellow (3), one portfolio company with a principal balance of $12.3 million was downgraded from White (2) to Orange (4), one portfolio company with a principal balance of $24.7 million was downgraded from Yellow (3) to Orange (4), and one portfolio company with a principal balance of $0.7 million was downgraded from Yellow (3) to Red (5).

Current wording

As of September 30, 2024 and December 31, 2023, the weighted average investment ranking of our debt investment portfolio was 2.17 and 2.14, respectively. During the three months ended September 30, 2024, portfolio company credit category changes, excluding fundings and repayments, consisted of the following: one portfolio company with a principal balance of $20.0 million was upgraded from White (2) to Clear (1), one portfolio company with a principal balance of $5.9 million was upgraded from Yellow (3) to White (2), one portfolio company with a principal balance of $26.7 million was upgraded from Orange (4) to Yellow (3), and one portfolio company with a principal balance of $10.0 million was downgraded from Clear (1) to White (2).

Previous wording

As of June 30, 2024, we had investments in five portfolio companies which were on non-accrual status, with an aggregate cost and fair value of $67.9 million and $50.4 million, respectively. As of December 31, 2023, we had investments in five portfolio companies which were on non-accrual status, with an aggregate cost and fair value of $41.7 million and $29.0 million, respectively.

Current wording

As of September 30, 2024, we had investments in three portfolio companies which were on non-accrual status, with an aggregate cost and fair value of $28.9 million and $17.9 million, respectively. As of December 31, 2023, we had investments in five portfolio companies which were on non-accrual status, with an aggregate cost and fair value of $41.7 million and $29.0 million, respectively.

Previous wording

Comparison of operating results for the three and six months ended June 30, 2024 and 2023

Current wording

Comparison of operating results for the three and nine months ended September 30, 2024 and 2023

Previous wording

For the three months ended June 30, 2024, our net increase in net assets resulting from operations was $8.6 million, which was comprised of $12.6 million of net investment income and $4.0 million of net realized and unrealized losses. For the three months ended June 30, 2023, our net decrease in net assets resulting from operations was $20.9 million, which was comprised of $18.8 million of net investment income and $39.7 million of net realized and unrealized losses. On a per share basis for the three months ended June 30, 2024, net investment income was $0.33 per share and the net increase in net assets from operations was $0.22 per share, as compared to net investment income of $0.53 per share and a net decrease in net assets from operations of $0.59 per share for the three months ended June 30, 2023.

Current wording

For the three months ended September 30, 2024, our net increase in net assets resulting from operations was $22.6 million, which was comprised of $13.8 million of net investment income and $8.8 million of net realized and unrealized gains. For the three months ended September 30, 2023, our net increase in net assets resulting from operations was $2.1 million, which was comprised of $19.1 million of net investment income and $17.0 million of net realized and unrealized losses. On a per share basis for the three months ended September 30, 2024, net investment income was $0.35 per share and the net increase in net assets from operations was $0.57 per share, as compared to net investment income of $0.54 per share and a net increase in net assets from operations of $0.06 per share for the three months ended September 30, 2023.

Previous wording

For the six months ended June 30, 2024, our net increase in net assets resulting from operations was $16.6 million, which was comprised of $28.1 million of net investment income and $11.5 million of net realized and unrealized losses. For the six months ended June 30, 2023, our net decrease in net assets resulting from operations was $13.2 million, which was comprised of $37.4 million of net investment income and $50.6 million of net realized and unrealized losses. On a per share basis for the six months ended June 30, 2024, net investment income was $0.74 per share and the net increase in net assets from operations was $0.43 per share, as compared to net investment income of $1.06 per share and a net decrease in net assets from operations of $0.37 per share for the six months ended June 30, 2023.

Current wording

For the nine months ended September 30, 2024, our net increase in net assets resulting from operations was $39.2 million, which was comprised of $41.9 million of net investment income and $2.7 million of net realized and unrealized losses. For the nine months ended September 30, 2023, our net decrease in net assets resulting from operations was $11.0 million, which was comprised of $56.5 million of net investment income and $67.5 million of net realized and unrealized losses. On a per share basis for the nine months ended September 30, 2024, net investment income was $1.08 per share and the net increase in net assets from operations was $1.01 per share, as compared to net investment income of $1.59 per share and a net decrease in net assets from operations of $0.31 per share for the nine months ended September 30, 2023.

Previous wording

For the three months ended June 30, 2024, total investment and other income was $27.1 million as compared to $35.2 million for the three months ended June 30, 2023. The decrease in total investment and other income for the three months ended June 30, 2024, compared to the 2023 period, is primarily due to a lower weighted average principal amount outstanding on our income-bearing debt investment portfolio.

Current wording

For the three months ended September 30, 2024, total investment and other income was $26.5 million as compared to $35.7 million for the three months ended September 30, 2023. The decrease in total investment and other income for the three months ended September 30, 2024, compared to the 2023 period, is primarily due to a lower weighted average principal amount outstanding on our income-bearing debt investment portfolio.

Previous wording

For the six months ended June 30, 2024, total investment and other income was $56.4 million as compared to $68.8 million for the six months ended June 30, 2023. The decrease in total investment and other income for the six months ended June 30, 2024, compared to the 2023 period, is primarily due to a lower weighted average principal amount outstanding on our income-bearing debt investment portfolio.

Current wording

For the nine months ended September 30, 2024, total investment and other income was $82.9 million as compared to $104.5 million for the nine months ended September 30, 2023. The decrease in total investment and other income for the nine months ended September 30, 2024, compared to the 2023 period, is primarily due to a lower weighted average principal amount outstanding on our income-bearing debt investment portfolio.

Previous wording

For the three months ended June 30, 2024, we recognized $0.5 million in other income from the realization of certain fees paid and accrued from portfolio companies and other income related to prepayment activity. For the three months ended June 30, 2023, we recognized $0.7 million in other income consisting of $0.1 million due to the termination or expiration of unfunded commitments and $0.6 million from the realization of certain fees paid and accrued from portfolio companies.

Current wording

For the three months ended September 30, 2024, we recognized $0.6 million in other income consisting of $0.1 million due to the termination or expiration of unfunded commitments and $0.4 million from the realization of certain fees paid and accrued from portfolio companies. For the three months ended September 30, 2023, we recognized $1.7 million in other income consisting of $0.7 million due to the termination or expiration of unfunded commitments and $1.0 million from the realization of certain fees paid and accrued from portfolio companies.

Previous wording

For the six months ended June 30, 2024, we recognized $1.3 million in other income consisting of $0.3 million due to the termination or expiration of unfunded commitments and $1.0 million from the realization of certain fees paid and accrued from portfolio companies. For the six months ended June 30, 2023, we recognized $2.1 million in other income consisting of $1.1 million due to the termination or expiration of unfunded commitments and $1.0 million from the realization of certain fees paid and accrued from portfolio companies and other income related to prepayment activity.

Current wording

For the nine months ended September 30, 2024, we recognized $1.8 million in other income consisting of $0.4 million due to the termination or expiration of unfunded commitments and $1.4 million from the realization of certain fees paid and accrued from portfolio companies. For the nine months ended September 30, 2023, we recognized $3.7 million in other income consisting of $1.7 million due to the termination or expiration of unfunded commitments and $2.0 million from the realization of certain fees paid and accrued from portfolio companies and other income related to prepayment activity.

Previous wording

Total operating expenses consist of our base management fee, income incentive fee, capital gains incentive fee, interest expense and amortization of fees, administration agreement expenses, and general and administrative expenses. We anticipate operating expenses would increase over time to the extent that our investment portfolio grows. However, we anticipate operating expenses, as a percentage of totals assets and net assets, would generally decrease over time to the extent that our portfolio and capital base expand. We expect that base management and income incentive fees would increase to the extent that we grow our asset base and our earnings. The capital gains incentive fee depends on realized gains and losses and unrealized losses. Interest expenses will generally increase as we borrow greater amounts under the Credit Facility, issue additional debt securities, and as interest rates increase. We generally expect expenses under the administration agreement and general and administrative expenses to increase over time to the extent that our investment portfolio grows, to meet the additional requirements associated with servicing a larger portfolio.

Current wording

Total operating expenses consist of our base management fee, income incentive fee, capital gains incentive fee, interest expense and amortization of fees, administration agreement expenses, and general and administrative expenses. We anticipate operating expenses would increase over time to the extent that our investment portfolio grows. However, we anticipate operating expenses, as a percentage of total assets and net assets, would generally decrease over time to the extent that our portfolio and capital base expand. We expect that base management and income incentive fees would increase to the extent that we grow our asset base and our earnings. The capital gains incentive fee depends on realized gains and losses and unrealized losses. Interest expenses will generally increase as we borrow greater amounts under the Credit Facility, issue additional debt securities, and if interest rates increase. We generally expect expenses under the administration agreement and general and administrative expenses to increase over time to the extent that our investment portfolio grows, to meet the additional requirements associated with servicing a larger portfolio.

Previous wording

For the three months ended June 30, 2024, total operating expenses were $14.5 million as compared to $16.3 million for the three months ended June 30, 2023. For the six months ended June 30, 2024, total operating expenses were $28.3 million as compared to $31.4 million for the six months ended June 30, 2023.

Current wording

For the three months ended September 30, 2024, total operating expenses were $12.7 million as compared to $16.6 million for the three months ended September 30, 2023. For the nine months ended September 30, 2024, total operating expenses were $41.0 million as compared to $48.0 million for the nine months ended September 30, 2023.

Previous wording

Base management fees for the three months ended June 30, 2024 and 2023 totaled $3.8 million and $4.5 million, respectively. Base management fees for the six months ended June 30, 2024 and 2023 totaled $8.1 million and $8.8 million, respectively. Base management fees decreased during the three and six months ended June 30, 2024, as compared to the three and six months ended June 30, 2023, due primarily to decreases in the average size of our portfolio during the applicable periods used in the calculations.

Current wording

Base management fees for the three months ended September 30, 2024 and 2023 totaled $3.4 million and $4.6 million, respectively. Base management fees for the nine months ended September 30, 2024 and 2023 totaled $11.6 million and $13.4 million, respectively. Base management fees decreased during the three and nine months ended September 30, 2024, as compared to the three and nine months ended September 30, 2023, due primarily to decreases in the average size of our portfolio during the applicable periods used in the calculations.

Previous wording

There were no income incentive fees for the three and six months ended June 30, 2024 or the three and six months ended June 30, 2023. For the three and six months ended June 30, 2024, our income incentive fee was reduced by $2.5 million and $5.6 million, respectively, due to the total return requirement under the income component of our incentive fee structure, which resulted in a corresponding increase in net investment income of $2.5 million and $5.6 million, respectively. For the three and six months ended June 30, 2023 our income incentive fee was reduced by $3.8 million and $7.5 million, respectively, due to the total return requirement under the income component of our incentive fee structure, which resulted in a corresponding increase in net investment income of $3.8 million and $7.5 million, respectively.

Current wording

There were no income incentive fees for the three and nine months ended September 30, 2024 or the three and nine months ended September 30, 2023. For the three and nine months ended September 30, 2024, our income incentive fee was reduced by $2.8 million and $8.4 million, respectively, due to the total return requirement under the income component of our incentive fee structure, which resulted in a corresponding increase in net investment income of $2.8 million and $8.4 million, respectively. For the three and nine months ended September 30, 2023 our income incentive fee was reduced by $3.8 million and $11.3 million, respectively, due to the total return requirement under the income component of our incentive fee structure, which resulted in a corresponding increase in net investment income of $3.8 million and $11.3 million, respectively.

Previous wording

There were no capital gains incentive fee expenses for the six months ended June 30, 2024 and 2023.

Current wording

There were no capital gains incentive fee expenses for the nine months ended September 30, 2024 and 2023.

Previous wording

Interest expense and amortization of fees totaled $8.7 million and $9.9 million for the three months ended June 30, 2024 and 2023, respectively. The decrease during the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, is primarily due to a lower weighted-average outstanding principal balance under the Credit Facility, offset by $1.8 million of one-time fees related to minimum utilization of the Revolving Credit Facility. Interest expense and amortization of fees totaled $15.7 million and $19.2 million for the six months ended June 30, 2024 and 2023, respectively. The decrease during the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, is primarily due to a lower weighted-average outstanding principal balance under the Credit Facility.

Current wording

Interest expense and amortization of fees totaled $7.1 million and $9.3 million for the three months ended September 30, 2024 and 2023, respectively. The decrease during the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, is primarily due to a lower weighted-average outstanding principal balance under the Credit Facility. Interest expense and amortization of fees totaled $22.9 million and $28.5 million for the nine months ended September 30, 2024 and 2023, respectively. The decrease during the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, is primarily due to a lower weighted-average outstanding principal balance under the Credit Facility.

Previous wording

Administration agreement and general and administrative expenses totaled $2.0 million and $1.9 million for the three months ended June 30, 2024 and 2023, respectively. Administration agreement and general and administrative expenses totaled $4.4 million and $3.4 million for the six months ended June 30, 2024 and 2023, respectively. The increase for the 2024 periods, as compared to the 2023 periods, was primarily due to higher excise tax and legal fee expenses.

Current wording

Administration Agreement and general and administrative expenses totaled $2.2 million and $2.7 million for the three months ended September 30, 2024 and 2023, respectively, which includes $0.4 million and $0.6 million of excise tax accruals, respectively. The decrease during the three months ended September 30, 2024, as compared to the three months ended September 30, 2023 is primarily due to a reduction in legal fee expenses and excise tax accruals. Administration Agreement and general and administrative expenses totaled $6.6 million and $6.1 million for the nine months ended September 30, 2024 and 2023, respectively, which includes $1.1 million and $1.0 million of excise tax accruals, respectively. The increase for the 2024 periods, as compared to the 2023 periods, was primarily due to higher excise tax accruals and other professional fee expenses.

Previous wording

During the three months ended June 30, 2024, we recognized net realized losses on investments of $18.8 million, consisting primarily of $20.2 million of net realized losses on debt investments from the write-off and restructures of investments, partially offset by $1.3 million of net warrant and equity gains from the sale and dispositions of investments. During the six months ended June 30, 2024, we recognized net realized losses on investments of $27.7 million.

Current wording

During the three months ended September 30, 2024, we recognized net realized losses on investments of $5.0 million, resulting primarily from the acquisition of one portfolio company. During the nine months ended September 30, 2024, we recognized net realized losses on investments of $32.7 million, consisting primarily of $33.6 million of net realized losses on debt investments from the write-off and restructures of investments, partially offset by $0.9 million of net warrant and equity gains from the sale and dispositions of investments.

Previous wording

During the three months ended June 30, 2023, we recognized net realized gains on investments of $1.9 million, resulting primarily from $2.9 million of realized gains from the sale of publicly traded equity investments, partially offset by $1.0 million of realized losses on investments. During the six months ended June 30, 2023, we recognized net gains on investments of $1.8 million.

Current wording

During the three months ended September 30, 2023, we recognized net realized losses on investments of $25.6 million, resulting primarily from the write-off of a debt investment. During the nine months ended September 30, 2023, we recognized net realized losses on investments of $23.7 million.

Previous wording

Net change in unrealized gains during the three months ended June 30, 2024 was $14.9 million, consisting of $12.8 million of net unrealized gains on the warrant and equity portfolio resulting from fair value adjustments and $10.9 million of net unrealized gains from the reversal of previously recorded unrealized losses from investments realized during the period, offset by $8.8 million of net unrealized losses on the existing debt investment portfolio resulting from fair value adjustments. Net change in unrealized gains during the six months ended June 30, 2024 was $16.1 million, consisting of $18.0 million of net unrealized gains on the warrant and equity portfolio resulting from fair value adjustments and $11.8 million of net unrealized gains from the reversal of previously recorded unrealized losses from investments realized during the period, offset by $13.7 of net unrealized losses on the existing debt investment portfolio resulting from fair value adjustments.

Current wording

Net change in unrealized gains during the three months ended September 30, 2024 was $13.9 million, consisting of $9.4 million of net unrealized gains on the existing warrant and equity portfolio resulting from fair value adjustments and $5.2 million of net unrealized gains from the reversal of previously recorded unrealized losses from investments realized during the period, offset by $0.7 million of net unrealized losses on the debt investment portfolio resulting from fair value adjustments. Net change in unrealized gains during the nine months ended September 30, 2024 was $30.0 million, consisting of $27.5 million of net unrealized gains on the warrant and equity portfolio resulting from fair value adjustments and $12.7 million of net unrealized gains from the reversal of previously recorded unrealized losses from investments realized during the period, offset by $10.1 of net unrealized losses on the debt investment portfolio resulting from fair value adjustments.

Previous wording

Net change in unrealized losses during the three months ended June 30, 2023 was $41.6 million, consisting of $37.8 million of net unrealized losses on the debt investment portfolio and $3.8 million of net unrealized losses on the warrant and equity portfolio resulting from fair value adjustments and the reversal of previously recorded unrealized gains from investments realized during the period. Net change in unrealized losses during the six months ended June 30, 2023 was $52.4 million, consisting of $44.4 million of net unrealized losses on the debt investment portfolio and $8.0 million of net unrealized losses on the warrant and equity portfolio resulting from fair value adjustments and the reversal of previously recorded unrealized gains from investments realized during the period.

Current wording

Net change in unrealized gains during the three months ended September 30, 2023 was $8.6 million, consisting of $17.6 million of net unrealized gains from the reversal of previously recorded unrealized losses from investments realized during the period, offset by $6.2 million of net unrealized losses on the existing debt investment portfolio and $2.8 million of net unrealized losses on the warrant and equity portfolio resulting from fair value adjustments. Net change in unrealized losses during the nine months ended September 30, 2023 was $43.8 million, consisting of $33.0 million of net unrealized losses on the debt investment portfolio and $10.8 million of net unrealized losses on the warrant and equity portfolio resulting from fair value adjustments.

Previous wording

Total return based on NAV is the change in ending NAV per share plus distributions per share paid during the period assuming participation in our dividend reinvestment plan divided by the beginning NAV per share for such period. Total return based on stock price is the change in the ending stock price of our common stock plus distributions paid during the period assuming participation in our dividend reinvestment plan divided by the beginning stock price of our common stock for such period. For the three months ended June 30, 2024 and 2023, our total return during the periods based on the change in NAV plus distributions reinvested as of the respective distribution dates was 3.1% and (5.2)%, respectively, and our total return during the periods based on the change in stock price plus distributions reinvested as of the respective distribution dates was (10.9)% and 1.0%, respectively. For the six months ended June 30, 2024 and 2023, our total return during the period based on the change in NAV plus distributions reinvested as of the respective distribution dates was 5.6% and (3.4)%, respectively, and our total return during the period based on the change in stock price plus distributions reinvested as of the respective distribution dates was (18.7)% and 21.1%, respectively.

Current wording

Total return based on NAV is the change in ending NAV per share plus distributions per share paid during the period assuming participation in our dividend reinvestment plan divided by the beginning NAV per share for such period. Total return based on stock price is the change in the ending stock price of our common stock plus distributions paid during the period assuming participation in our dividend reinvestment plan divided by the beginning stock price of our common stock for such period. For the three months ended September 30, 2024 and 2023, our total return during the periods based on the change in NAV plus distributions reinvested as of the respective distribution dates was 7.6% and 0.7%, respectively, and our total return during the periods based on the change in stock price plus distributions reinvested as of the respective distribution dates was (8.1)% and (7.6)%, respectively. For the nine months ended September 30, 2024 and 2023, our total return during the period based on the change in NAV plus distributions reinvested as of the respective distribution dates was 13.5% and (2.7)%, respectively, and our total return during the period based on the change in stock price plus distributions reinvested as of the respective distribution dates was (25.3)% and 11.8%, respectively.

Previous wording

The table below shows our return on average total assets and return on average NAV for the three and six months ended June 30, 2024 and 2023:

Current wording

The table below shows our return on average total assets and return on average NAV for the three and nine months ended September 30, 2024 and 2023:

Previous wording

As of June 30, 2024, our investment portfolio, valued at fair value in accordance with our Board-approved valuation policy, represented 92.5% of our total assets, as compared to 81.9% of our total assets as of December 31, 2023.

Current wording

As of September 30, 2024, our investment portfolio, valued at fair value in accordance with our Board-approved valuation policy, represented 92.6% of our total assets, as compared to 81.9% of our total assets as of December 31, 2023.

Previous wording

During the six months ended June 30, 2024, net cash provided by operating activities, consisting primarily of purchases, sales and repayments of investments and the items described in “Results of Operations,” was $94.6 million, and net cash used in financing activities was $215.5 million due primarily to net repayments under the Credit Facility of $205.0 million and $29.4 million in distributions paid, partially offset by $19.4 million from the issuance of common stock under the Current ATM Program and the Prior ATM Program. As of June 30, 2024, cash and cash equivalents, including restricted cash, was $50.7 million.

Current wording

During the nine months ended September 30, 2024, net cash provided by operating activities, consisting primarily of purchases, sales and repayments of investments and the items described in “Results of Operations,” was $106.3 million, and net cash used in financing activities was $229.3 million due primarily to net repayments under the Credit Facility of $205.0 million and $40.7 million in distributions paid, partially offset by $19.4 million from the issuance of common stock under the Current ATM Program and the Prior ATM Program. As of September 30, 2024, cash and cash equivalents, including restricted cash, was $48.6 million.

Previous wording

During the six months ended June 30, 2023, net cash used in operating activities, consisting primarily of purchases, sales and repayments of investments and the items described in “Results of Operations,” was $7.5 million, and net cash provided by financing activities was $37.7 million due primarily to net borrowings under the Credit Facility of $65.0 million partially offset by $27.2 million in distributions paid. As of June 30, 2023, cash and cash equivalents, including restricted cash, was $89.4 million.

Current wording

During the nine months ended September 30, 2023, net cash provided by operating activities, consisting primarily of purchases, sales and repayments of investments and the items described in “Results of Operations,” was $63.0 million, and net cash provided by financing activities was $0.2 million due primarily to net borrowings under the Credit Facility of $35.0 million and $6.2 million from the issuance of common stock under the Prior ATM Program, partially offset by $40.8 million in distributions paid. As of September 30, 2023, cash and cash equivalents, including restricted cash, was $122.5 million.

Previous wording

As of June 30, 2024, we had $350 million in total commitments available under the Credit Facility, subject to various covenants and borrowing base requirements. The Credit Facility also includes an accordion feature, which allows us to increase the size of the Credit Facility to up to $400 million under certain circumstances. As of June 30, 2024 the revolving period under the Credit Facility was set to expire on August 31, 2024, and the scheduled maturity date of the Credit Facility was November 30, 2025 (unless otherwise terminated earlier pursuant to its terms). As of June 30, 2024 borrowings under the Credit Facility bore interest at the sum of (i) a floating rate based on certain indices, including SOFR and commercial paper rates (subject to a floor of 0.50%), plus (ii) a margin of 2.80% if facility utilization is greater than or equal to 75%, 2.90% if utilization is greater than or equal to 50%, 3.00% if utilization is less than 50% and 4.5% during the amortization period. See “Note 6. Borrowings” in the notes to the consolidated financial statements for more information regarding the terms of the Credit Facility. Subsequent to June 30, 2024, the Company and the Financing Subsidiary amended the Credit Facility to further extend the revolving period and scheduled maturity date and effectuate other changes. See “Recent Developments” below for more information.

Current wording

As of September 30, 2024, we had $300.0 million in total commitments available under the Credit Facility, subject to various covenants and borrowing base requirements. The Credit Facility also includes an accordion feature, which allows us to increase the size of the Credit Facility to up to $400.0 million under certain circumstances. The revolving period under the Credit Facility is scheduled to expire on November 30, 2025, and the scheduled maturity date of the Credit Facility is May 30, 2027 (unless otherwise terminated earlier pursuant to its terms). Borrowings under the Credit Facility bear interest at the sum of (i) a floating rate based on certain indices, including SOFR and commercial paper rates (subject to a floor of 0.50%), plus (ii) a margin of 3.20% if facility utilization is greater than or equal to 75%, 3.35% if utilization is greater than or equal to 50% but less than 75%, 3.50% if utilization is less than 50% and 4.5% during the amortization period. See “Note 6. Borrowings” in the notes to the consolidated financial statements for more information regarding the terms of the Credit Facility.

Previous wording

As of June 30, 2024 and December 31, 2023, we had outstanding borrowings under the Credit Facility of $10.0 million and $215.0 million, respectively, excluding deferred credit facility costs of $2.5 million and $2.7 million, respectively, which is included in the consolidated statements of assets and liabilities. We had $340.0 million and $135.0 million of remaining capacity on our Credit Facility as of June 30, 2024 and December 31, 2023, respectively.

Current wording

As of September 30, 2024 and December 31, 2023, we had outstanding borrowings under the Credit Facility of $10.0 million and $215.0 million, respectively, excluding deferred credit facility costs of $4.6 million and $2.7 million, respectively, which is included in the consolidated statements of assets and liabilities. We had $290.0 million and $135.0 million of remaining capacity on our Credit Facility as of September 30, 2024 and December 31, 2023, respectively.

Previous wording

As of June 30, 2024 and December 31, 2023, we have recorded in the consolidated statements of assets and liabilities our liability for the 2025 Notes, net of deferred issuance costs, of $69.8 million and $69.7 million, respectively. See “Note 6. Borrowings” in the notes to the consolidated financial statements for more information regarding the 2025 Notes.

Current wording

As of September 30, 2024 and December 31, 2023, we have recorded in the consolidated statements of assets and liabilities our liability for the 2025 Notes, net of deferred issuance costs, of $69.9 million and $69.7 million, respectively. See “Note 6. Borrowings” in the notes to the consolidated financial statements for more information regarding the 2025 Notes.

Previous wording

As of June 30, 2024 and December 31, 2023, we have recorded in the consolidated statements of assets and liabilities our liability for the 2026 Notes, net of deferred issuance costs, of $199.3 million and $199.0 million, respectively. See “Note 6. Borrowings” in the notes to the consolidated financial statements for more information regarding the 2026 Notes.

Current wording

As of September 30, 2024 and December 31, 2023, we have recorded in the consolidated statements of assets and liabilities our liability for the 2026 Notes, net of deferred issuance costs, of $199.4 million and $199.0 million, respectively. See “Note 6. Borrowings” in the notes to the consolidated financial statements for more information regarding the 2026 Notes.

Previous wording

On June 21, 2018, our stockholders voted at a special meeting of stockholders to approve a proposal to authorize us to be subject to a reduced asset coverage ratio of at least 150% under the 1940 Act. As a result of the stockholder approval at the special meeting, effective June 22, 2018, our applicable minimum asset coverage ratio under the 1940 Act has been 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, 2024, our asset coverage for borrowed amounts was 187%.

Current wording

On June 21, 2018, our stockholders voted at a special meeting of stockholders to approve a proposal to authorize us to be subject to a reduced asset coverage ratio of at least 150% under the 1940 Act. As a result of the stockholder approval at the special meeting, effective June 22, 2018, our applicable minimum asset coverage ratio under the 1940 Act has been 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, 2024, our asset coverage for borrowed amounts was 190%.

Previous wording

We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. As of June 30, 2024 and December 31, 2023, our unfunded commitments totaled $71.4 million and $118.1 million, respectively, of which $5.0 million and $29.2 million, respectively, was dependent upon the portfolio companies reaching certain milestones before the debt commitment becomes available to them.

Current wording

We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. As of September 30, 2024 and December 31, 2023, our unfunded commitments totaled $74.0 million and $118.1 million, respectively, of which $5.0 million and $29.2 million, respectively, was dependent upon the portfolio companies reaching certain milestones before the debt commitment becomes available to them.

Previous wording

As of June 30, 2024, our unfunded commitments to ten companies totaled $71.4 million. During the three and six months ended June 30, 2024, $15.0 million in unfunded commitments expired or were terminated.

Current wording

As of September 30, 2024, our unfunded commitments to nine companies totaled $74.0 million. During the three and nine months ended September 30, 2024, $5.4 million and $61.9 million in unfunded commitments expired or were terminated, respectively.

Previous wording

For the three months ended June 30, 2024, distributions paid were comprised of interest-sourced distributions (qualified interest income) in an amount equal to 72.2% of total distributions paid. As of June 30, 2024, we had estimated undistributed taxable earnings from net investment income of $39.3 million, or $0.98 per share.

Current wording

For the three months ended September 30, 2024, distributions paid were comprised of interest-sourced distributions (qualified interest income) in an amount equal to 70.5% of total distributions paid. As of September 30, 2024, we had estimated undistributed taxable earnings from net investment income of $41.5 million, or $1.03 per share.