10-Q 1 tv520164_10q.htm FORM 10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2019

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

COMMISSION FILE NUMBER: 1-35730

STELLUS CAPITAL INVESTMENT CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Maryland		46-0937320
(State or other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

4400 Post Oak Parkway, Suite 2200
Houston, Texas 77027

(Address of Principal Executive Offices) (Zip Code)

(713) 292-5400

(Registrant’s Telephone Number, Including Area Code)

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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨	Smaller reporting company	¨
Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨

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

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	SCM	New York Stock Exchange
5.75% Notes Due 2022	SCA	New York Stock Exchange

The number of shares of the issuer’s Common Stock, $0.001 par value per share, outstanding as of May 8, 2019 was 18,905,960

STELLUS CAPITAL INVESTMENT CORPORATION

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Statements of Assets and Liabilities as of March 31, 2019 (unaudited) and December 31, 2018	1
	Consolidated Statements of Operations for the three-month periods ended March 31, 2019 and March 31, 2018 (unaudited)	2
	Consolidated Statements of Changes in Net Assets for the three-month periods ended March 31, 2019 and March 31, 2018 (unaudited)	3
	Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2019 and March 31, 2018 (unaudited)	4
	Consolidated Schedules of Investments as of March 31, 2019 (unaudited) and December 31, 2018	5
	Notes to Unaudited Financial Statements	21
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	53
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	69
Item 4.	Controls and Procedures	70
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	71
Item 1A.	Risk Factors	71
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	71
Item 3.	Defaults Upon Senior Securities	71
Item 4.	Mine Safety Disclosures	71
Item 5.	Other Information	71
Item 6.	Exhibits	71

PART I — FINANCIAL INFORMATION

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

	March 31, 2019 (Unaudited)		December 31, 2018
ASSETS
Non-controlled, affiliated investments, at fair value (amortized cost of $0 and $52,185, respectively)	$	—	$	50,000
Non-controlled, non-affiliated investments, at fair value (amortized cost of $520,096,508 and $502,691,464, respectively)		517,411,814		504,433,668
Cash and cash equivalents		23,843,646		17,467,146
Receivable for sales and repayments of investments		212,822		99,213
Interest receivable		3,317,929		3,788,684
Other receivables		61,551		85,246
Deferred offering costs		7,609		18,673
Prepaid expenses		346,519		344,621
Total Assets	$	545,201,890	$	526,287,251
LIABILITIES
Notes payable	$	47,723,760	$	47,641,797
Credit facility payable		74,861,034		98,237,227
SBA-guaranteed debentures		146,536,821		146,387,802
Dividends payable		2,119,145		1,807,570
Management fees payable		972,645		2,183,975
Income incentive fees payable		1,634,588		1,936,538
Capital gains incentive fees payable		1,242,795		81,038
Interest payable		866,559		1,863,566
Unearned revenue		394,746		410,593
Administrative services payable		442,132		392,191
Deferred tax liability		80,554		67,953
Income tax payable		51,034		316,092
Other accrued expenses and liabilities		476,833		115,902
Total Liabilities	$	277,402,646	$	301,442,244
Commitments and contingencies (Note 7)
Net Assets	$	267,799,244	$	224,845,007
NET ASSETS
Common stock, par value $0.001 per share (200,000,000 shares authorized; 18,703,810 and 15,953,810 issued and outstanding, respectively)	$	18,704	$	15,954
Paid-in capital		266,703,785		228,160,491
Distributable earnings		1,076,755		(3,331,438	)
Net Assets	$	267,799,244	$	224,845,007
Total Liabilities and Net Assets	$	545,201,890	$	526,287,251
Net Asset Value Per Share	$	14.32	$	14.09

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	For the three months ended March 31, 2019			For the three months ended March 31, 2018
INVESTMENT INCOME
Interest income	$	13,625,399		$	10,730,748
Other income		209,530			181,033
Total Investment Income	$	13,834,929		$	10,911,781
OPERATING EXPENSES
Management fees	$	2,222,645		$	1,748,896
Valuation fees		107,322			134,410
Administrative services expenses		405,399			351,229
Income incentive fees		1,373,854			968,826
Capital gains incentive fees		1,161,757			—
Professional fees		344,340			469,138
Directors' fees		104,000			92,000
Insurance expense		85,697			85,697
Interest expense and other fees		3,674,787			2,464,980
Income tax expense		12,744			—
Other general and administrative expenses		8,725			121,226
Total Operating Expenses	$	9,501,270		$	6,436,402
Net Investment Income	$	4,333,659		$	4,475,379
Net realized gain on non-controlled, non-affiliated investments and cash equivalents	$	10,246,098		$	1,335,269
Net change in unrealized appreciation (depreciation) on non- controlled, non-affiliated investments and cash equivalents	$	(4,426,898	)	$	1,466,614
Net change in unrealized appreciation on non- controlled, affiliated investments and cash equivalents		2,185			66,667
Provision for taxes on net unrealized gain on investments	$	(12,601	)	$	-
Net Increase in Net Assets Resulting from Operations	$	10,142,443		$	7,343,929
Net Investment Income Per Share	$	0.27		$	0.28
Net Increase in Net Assets Resulting from Operations Per Share	$	0.62		$	0.46
Weighted Average Shares of Common Stock Outstanding		16,351,032			15,952,841
Distributions Per Share	$	0.34		$	0.34

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)

	For the			For the
	three			three
	months ended			months ended
	March 31,			March 31,
	2019			2018
Increase in Net Assets Resulting from Operations
Net investment income	$	4,333,659		$	4,475,379
Net realized gain on investments and cash equivalents		10,246,098			1,335,269
Net change in unrealized appreciation (depreciation) on non-controlled, non-affiliated investments and cash equivalents		(4,426,898	)		1,466,614
Net change in unrealized appreciation on non-controlled, affiliated investments and cash equivalents		2,185			66,667
Provision for taxes on unrealized appreciation on investments		(12,601	)		—
Net Increase in Net Assets Resulting from Operations	$	10,142,443		$	7,343,929
Stockholder distributions	$	(5,734,250	)	$	(5,422,500	)
Capital Share Transactions
Issuance of common stock	$	39,682,500		$	94,788
Sales load		(935,000	)		—
Offering costs		(202,891	)		—
Partial share transactions		1,435			(327	)
Net Increase in Net Assets Resulting From Capital Share Transactions	$	38,546,044		$	94,461
Total Increase in Net Assets	$	42,954,237		$	2,015,890
Net Assets at Beginning of Period	$	224,845,007		$	220,247,242
Net Assets at End of Period	$	267,799,244		$	222,263,132

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	For the			For the
	three			three
	months ended			months ended
	March 31,			March 31,
	2019			2018
Cash flows from operating activities
Net Increase in net assets resulting from operations	$	10,142,443		$	7,343,929
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of investments		(28,573,192	)		(71,713,787	)
Proceeds from sales and repayments of investments		21,794,726			15,618,134
Net change in unrealized depreciation (appreciation) on investments		4,424,713			(1,533,281	)
Increase in investments due to PIK		(41,841	)		(152,006	)
Amortization of premium and accretion of discount, net		(400,064	)		(343,739	)
Deferred tax provision		12,601			—
Amortization of loan structure fees		123,807			66,223
Amortization of deferred financing costs		81,963			83,196
Amortization of loan fees on SBA-guaranteed debentures		149,019			100,668
Net realized gain on investments		(10,246,098	)		(1,335,269	)
Changes in other assets and liabilities
Decrease (increase) in interest receivable		470,755			(864,856	)
Decrease (increase) in other receivable		23,695			(37,647	)
Decrease (increase) in prepaid expenses		(1,898	)		63,084
Increase in management fees payable		(1,211,330	)		(46,226	)
Increase (decrease) in incentive fees payable		(301,950	)		793,088
Increase in capital gains incentive fees payable		1,161,757			—
Increase in administrative services payable		49,941			34,694
Decrease in interest payable		(997,007	)		(337,193	)
Increase (decrease) in unearned revenue		(15,847	)		36,685
Decrease in income tax payable		(265,058	)		—
Increase in other accrued expenses and liabilities		360,932			385,087
Net Cash Used in Operating Activities	$	(3,257,933	)	$	(51,839,216	)
Cash flows from Financing Activities
Proceeds from the issuance of common stock	$	39,682,500		$	—
Sales load for common stock issued		(935,000	)		—
Offering costs paid for common stock		(191,827	)		—
Stockholder distributions paid		(5,422,675	)		(5,327,712	)
Borrowings under Credit Facility		22,250,000			86,550,000
Repayments of Credit Facility		(45,750,000	)		(9,000,000	)
Partial share transactions		1,435			(327	)
Net Cash Provided by Financing Activities	$	9,634,433		$	72,221,961
Net Increase in Cash and Cash Equivalents	$	6,376,500		$	20,382,745
Cash and cash equivalents balance at beginning of period		17,467,146			25,110,718
Cash and Cash Equivalents Balance at End of Period	$	23,843,646		$	45,493,463
Supplemental and Non-Cash Activities
Cash paid for interest expense	$	4,317,004		$	2,512,086
Excise tax paid		280,000			27,717
Shares issued pursuant to Dividend Reinvestment Plan		—			94,788
Increase in Distribution Payable		311,575			899
Decrease in deferred offering costs		(11,064	)		—

Stellus Capital Investment Corporation

Consolidated Schedule of Investments (unaudited)

March 31, 2019

Investments	Footnotes	Security	Coupon	LIBOR floor			Cash			PIK	Investment Date	Maturity	Headquarters/ Industry	Principal Amount/ Shares		Amortized Cost		Fair Value ⁽¹⁾		% of Net Assets

Non-controlled, non-affiliated investments	(2)
Abrasive Products & Equipment, LLC, et al													Deer Park, TX
Term Loan (SBIC)	(2)(12)(20)	Second Lien	3M L+10.50%		1.00	%		13.11	%		9/5/2014	3/5/2021	Chemicals, Plastics, & Rubber	$	5,325,237	$	5,300,968	$	4,766,088		1.78	%
APE Holdings, LLC Class A Common Units	(4)	Equity									9/5/2014				375,000 units		375,000		20,000		0.01	%
Total																$	5,675,968	$	4,786,088		1.79	%
Adams Publishing Group, LLC	(3)												Greenville, TN
Term Loan	(12)	First Lien	3M L+7.50%		1.00	%		10.30	%		8/3/2018	6/30/2023	Media: Broadcasting & Subscription	$	6,782,783		6,722,539		6,613,213		2.47	%
Advanced Barrier Extrusions, LLC	(8)												Rhinelander, WI
Term Loan (SBIC)	(2)(12)	First Lien	3M L+5.75%		1.00	%		8.36	%		8/8/2018	8/8/2023	Containers, Packaging & Glass	$	11,371,500		11,169,373		10,916,640		4.08	%
GP ABX Holdings Partnership, L.P. Common Stock	(4)	Equity									8/8/2018				250,000 units		250,000		210,000		0.08	%
Total																$	11,419,373	$	11,126,640		4.16	%
Apex Environmental Resources Holdings, LLC													Amsterdam, OH
Common Units	(4)	Equity									10/30/2015		Environmental Industries		945 shares		945		0		0.00	%
Preferred Units	(4)	Equity													945 shares		945,179		280,000		0.10	%
Total											10/30/2015					$	946,124	$	280,000		0.10	%
APG Intermediate Sub 2 Corp.													Castle Rock, CO
Term Loan	(13)(22)	First Lien	1M L+6.00%		1.00	%		9.80	%		11/30/2018	11/30/2023	Services: Business	$	10,000,000		9,786,446		9,800,000		3.66	%
APG Holdings, LLC Class A Preferred Units	(4)	Equity									11/30/2018				1,000,000 units		1,000,000		1,000,000		0.37	%
Total																$	10,786,446	$	10,800,000		4.03	%
Atmosphere Aggregator Holdings II, LP													Atlanta, GA
Common Units	(4)	Equity									6/30/2015		Services: Business		254,250 units		254,250		1,280,000		0.48	%
Atmosphere Aggregator Holdings, LP Common Units	(4)	Equity									6/30/2015				750,000 units		750,000		3,770,000		1.41	%
Total																$	1,004,250	$	5,050,000		1.89	%
ASC Communications, LLC	(7)												Chicago, IL
Term Loan (SBIC)	(2)(12)	First Lien	1M L+6.25%		1.00	%		8.75	%		6/29/2017	6/29/2023	Healthcare & Pharmaceuticals	$	4,753,086		4,719,928		4,719,928		1.76	%
Term Loan	(12)	First Lien	1M L+6.25%		1.00	%		8.75	%		2/4/2019	6/29/2023		$	8,080,247		7,982,475		7,982,475		2.98	%
ASC Communications Holdings, LLC Class A Preferred Units (SBIC)	(2)(4)	Equity									6/29/2017				73,529 shares		120,642		610,000		0.23	%
Total																$	12,823,045	$	13,312,403		4.97	%
Beneplace Holdings, LLC													Austin TX
Preferred Units	(4)	Equity									3/27/2017		FIRE: Insurance		500,000 units		500,000		560,000		0.21	%

Stellus Capital Investment Corporation

Consolidated Schedule of Investments (unaudited)

March 31, 2019

Investments	Footnotes	Security	Coupon	LIBOR floor			Cash			PIK			Investment Date	Maturity	Headquarters/ Industry	Principal Amount/ Shares		Amortized Cost		Fair Value ⁽¹⁾		% of Net Assets

BFC Solmetex, LLC	(23)														Nashville, TN
Revolver	(12)(19)	First Lien	3M L+6.25%		1.00	%		8.86	%				4/2/2018	9/26/2023	Services: Business	$	764,059		764,059		741,137		0.28	%
Term Loan (SBIC)	(2)(12)	First Lien	3M L+6.25%		1.00	%		8.86	%				4/2/2018	9/26/2023		$	11,681,479		11,531,656		11,331,035		4.23	%
Bonded Filter Co. LLC, Term Loan (SBIC)	(2)(12)	First Lien	3M L+6.25%		1.00	%		8.86	%				4/2/2018	9/26/2023		$	1,213,784		1,198,216		1,177,370		0.44	%
Total																		$	13,493,931	$	13,249,542		4.95	%
BW DME Acquisition, LLC															Tempe, AZ
Term Loan (SBIC)	(2)(13)(22)	First Lien	3M L+6.00%		1.00	%		10.29	%				8/24/2017	8/24/2022	Healthcare & Pharmaceuticals	$	16,695,804		16,320,178		16,361,888		6.11	%
BW DME Holdings, LLC, Term Loan	(6)	Unsecured	17.50%								17.50	%	6/1/2018	12/31/2019		$	289,616		289,616		289,616		0.11	%
BW DME Holdings, LLC Class A-1 Preferred Units	(4)	Equity											8/24/2017				1,000,000 shares		1,000,000		1,100,000		0.41	%
BW DME Holdings, LLC Class A-2 Preferred Units	(4)	Equity											1/26/2018				937,261 shares		937,261		1,030,000		0.38	%
Total																		$	18,547,055	$	18,781,504		7.01	%
C.A.R.S. Protection Plus, Inc.															Murrysville, PA
Term Loan	(12)	First Lien	1M L+8.50%		0.50	%		11.00	%				12/31/2015	12/31/2020	Automotive	$	98,746		97,946		98,746		0.04	%
Term Loan (SBIC)	(2)(12)	First Lien	1M L+8.50%		0.50	%		11.00	%				12/31/2015	12/31/2020		$	7,702,191		7,639,820		7,702,191		2.88	%
CPP Holdings LLC Class A Common Units	(4)	Equity											12/31/2015				149,828 shares		149,828		120,000		0.04	%
Total																		$	7,887,594	$	7,920,937		2.96	%
Catapult Learning, Inc.															Camden, NJ
Term Loan	(13)(22)	First Lien	3M L+6.35%		1.00	%		11.28	%				6/27/2018	4/24/2023	Education	$	20,856,549		20,489,409		20,126,570		7.52	%
Delayed Draw Term Loan	(13)(22)	First Lien	3M L+6.35%		1.00	%		11.32	%				6/27/2018	4/24/2023		$	1,143,451		1,143,451		1,103,430		0.41
Total																		$	21,632,860	$	21,230,000		7.93	%
Colford Capital Holdings, LLC															New York, NY
Preferred Units	(4)(5)	Equity											8/20/2015		Finance		38,893 units		235,371		60,000		0.02	%
Condor Borrower, LLC															Clifton, NJ
Term Loan	(12)	Second Lien	3M L+8.75%		1.00	%		11.49	%				10/27/2017	4/27/2025	Services: Business	$	13,750,000		13,512,353		13,337,500		4.98	%
Condor Top Holdco Limited Convertible Preferred Shares	(4)	Equity											10/27/2017				500,000 shares		442,197		340,000		0.13	%
Condor Holdings Limited Preferred Shares, Class B	(4)	Equity											10/27/2017				500,000 shares		57,804		40,000		0.01	%
Total																		$	14,012,354	$	13,717,500		5.12	%
Convergence Technologies, Inc.															Indianpolis, IN
Term Loan (SBIC)	(2)(12)	First Lien	3M L+6.75%		1.50	%		9.36	%				8/31/2018	8/30/2024	Services: Business	$	7,107,143		6,975,814		6,975,814		2.60	%
Term Loan	(12)	First Lien	3M L+6.75%		1.50	%		9.36	%				2/28/2019	8/30/2024		$	1,428,571		1,400,339		1,400,339		0.52	%
Delayed Draw Term Loan	(12)	First Lien	3M L+6.75%		1.50	%		9.36	%				8/31/2018	8/30/2024		$	5,343,750		5,343,750		5,343,750		2.00	%
Tailwind Core Investor, LLC Class A Preferred Units	(4)	Equity											8/31/2018				4,275 units		429,614		390,000		0.15	%
Total																		$	14,149,517	$	14,109,903		5.27	%
Douglas Products Group, LP															Liberty, MO
Class A Common Units	(4)	Equity											12/27/2018		Chemicals, Plastics, & Rubber		322 shares		139,656		610,000		0.23	%
Dream II Holdings, LLC															Boca Raton, FL
Class A Common Units	(4)	Equity											10/20/2014		Services: Consumer		250,000 units		242,304		0		0.00	%
DTE Enterprises, LLC	(18)														Roselle, IL
Term Loan	(12)	First Lien	1M L+7.50%		1.50	%		10.00	%				4/13/2018	4/13/2023	Energy: Oil & Gas	$	11,991,941		11,790,639		11,931,981		4.46	%
DTE Holding Company, LLC Common Shares, Class A-2	(4)	Equity											4/13/2018				776,316 shares		572,768		1,490,000		0.56	%
DTE Holding Company, LLC Preferred Shares, Class AA	(4)	Equity											4/13/2018				723,684 shares		723,684		1,380,000		0.52	%
Total																		$	13,087,091	$	14,801,981		5.54	%

Stellus Capital Investment Corporation

Consolidated Schedule of Investments (unaudited)

March 31, 2019

Investments	Footnotes	Security	Coupon	LIBOR floor			Cash			PIK			Investment Date	Maturity	Headquarters/ Industry	Principal Amount/ Shares		Amortized Cost		Fair Value ⁽¹⁾		% of Net Assets

Empirix Inc.															Billerica, MA
Empirix Holdings I, Inc. Common Shares, Class A	(4)	Equity											11/1/2013		Software		1,304 shares		1,304,232		1,040,000		0.39	%
Empirix Holdings I, Inc. Common Shares, Class B	(4)	Equity											11/1/2013				1,317,406 shares		13,174		10,000		0.00	%
Total																		$	1,317,406	$	1,050,000		0.39	%
Energy Labs Inc.															Houston, TX
Energy Labs Holding Corp. Common Stock	(4)	Equity											9/29/2016		Energy: Oil & Gas		598 shares		598,182		570,000		0.21	%
Exacta Land Surveyors, LLC	(14)(25)														Cleveland, OH
Term Loan (SBIC)	(2)(12)	First Lien	3M L+5.75%		1.50	%		8.36	%				2/8/2019	2/8/2024	Services: Business	$	12,250,000		12,011,605		12,011,605		4.49	%
SP ELS Holdings LLC, Class A Common Units	(4)	Equity											2/8/2019				904,250 shares		904,250		904,250		0.34	%
Total																		$	12,915,855	$	12,915,855		4.83	%
EOS Fitness OPCO Holdings, LLC															Phoenix, AZ
EOS Fitness Holdings, LLC Class A Preferred Units	(4)	Equity											12/30/2014		Hotel, Gaming, & Leisure		118 shares		0		330,000		0.12	%
EOS Fitness Holdings, LLC Class B Common Units	(4)	Equity											12/30/2014				3,017 shares		0		10,000		0.00	%
Total																		$	0	$	340,000		0.12
Fast Growing Tree, LLC	(16)														Fort Mill, SC
Term Loan (SBIC)	(2)(12)	First Lien	3M L+7.75%		1.00	%		10.36	%				2/5/2018	02/05/23	Retail	$	20,120,000		19,795,636		19,415,800		7.25	%
SP FGT Holdings, LLC, Class A Common	(4)	Equity											2/5/2018				1,000,000 shares		1,000,000		890,000		0.33	%
Total																		$	20,795,636	$	20,305,800		7.58	%
Furniture Factory Outlet, LLC															Fort Smith, AR
Term Loan	(12)	First Lien	3M L+8.00%		0.50	%		10.61	%				6/10/2016	6/10/2021	Consumer Goods: Durable	$	14,922,485		14,741,372		14,549,423		5.43	%
Revolver	(12)	First Lien	3M L+8.00%		0.50	%		10.61	%				12/17/2018	6/10/2021		$	2,500,000		2,500,000		2,437,500		0.91	%
Furniture Factory Holdings, LLC Term Loan	(6)	Unsecured	11.00%								11.00	%	6/10/2016	2/3/2021		$	147,231		147,231		131,772		0.05	%
Furniture Factory Ultimate Holdings, LP Common Units	(4)	Equity											6/10/2016				13,445 shares		94,569		0		0.00	%
Total																		$	17,483,172	$	17,118,695		6.39	%
GK Holdings, Inc.															Cary, NC
Term Loan	(12)	Second Lien	3M L+10.25%		1.00	%		12.85	%				2/6/2015	1/30/2022	Education	$	5,000,000		4,950,253		4,450,000		1.66	%
General LED OPCO, LLC															San Antonio, TX
Term Loan	(12)	Second Lien	3M L+9.00%		1.50	%		11.61	%				5/1/2018	11/1/2023	Services: Business	$	4,500,000		4,421,740		4,252,500		1.59	%
Good Source Solutions, Inc.															Carlsbad, CA
Term Loan	(13)(22)	First Lien	3M L+6.00%		1.00	%		10.88	%				6/29/2018	6/29/2023	Beverage, Food, & Tobacco	$	18,500,000		18,173,242		17,667,500		6.60	%
HV GS Acquisition, LLC Class A Preferred Units	(4)	Equity											6/29/2018				1,000 shares		1,000,000		760,000		0.28	%
HV GS Acquisition, LLC Class B Common Units	(4)	Equity											6/29/2018				28,125 shares		0		0		0.00	%
Total																		$	19,173,242	$	18,427,500		6.88	%
Grupo HIMA San Pablo, Inc., et al															San Juan, PR
Term Loan	(12)	First Lien	3M L+7.00%		1.50	%		9.75	%				2/1/2013	1/31/2018	Healthcare & Pharmaceuticals	$	4,626,860		4,626,860		4,071,637		1.52	%
Term Loan	(15)	Second Lien	13.75%					0.00	%				2/1/2013	7/31/2018		$	4,109,524		4,109,524		904,095		0.34	%
Total																		$	8,736,384	$	4,975,732		1.86	%

Stellus Capital Investment Corporation

Consolidated Schedule of Investments (unaudited)

March 31, 2019

Investments	Footnotes	Security	Coupon	LIBOR floor			Cash			PIK			Investment Date	Maturity	Headquarters/ Industry	Principal Amount/ Shares		Amortized Cost		Fair Value ⁽¹⁾		% of Net Assets

ICD Intermediate Holdco 2, LLC															San Francisco, CA
Term Loan (SBIC)	(2)(5)(12)	Second Lien	3M L+9.00%		1.00	%		11.61	%				1/2/2018	7/1/2024	Finance	$	10,000,000		9,828,760		10,000,000		3.73	%
ICD Holdings, LLC, Class A Preferred	(4)(5)	Equity											1/2/2018				9,962 shares		496,405		880,000		0.33	%
Total																		$	10,325,165	$	10,880,000		4.06	%
J.R. Watkins, LLC															San Francisco, CA
Revolver	(12)	First Lien	3M L+6.50%		1.25	%		9.11	%				12/22/2017	12/22/2022	Consumer Goods: non-durable	$	1,750,000		1,750,000		1,697,500		0.63	%
Term Loan (SBIC)	(2)(12)	First Lien	3M L+6.50%		1.25	%		9.11	%				12/22/2017	12/22/2022		$	12,343,750		12,149,440		11,973,438		4.47	%
J.R. Watkins Holdings, Inc. Class A Preferred	(4)	Equity											12/22/2017				1,076 shares		1,075,758		1,100,000		0.41	%
Total																		$	14,975,198	$	14,770,938		5.51	%
Jurassic Intermediate Holdings Corp.															Sparks, MD
Term Loan	(12)	First Lien	3M L+5.50%		0.00	%		8.19	%				12/28/2018	11/15/2024	Consumer Goods: Durable	$	17,456,250		17,203,751		17,194,406		6.42
Kelleyamerit Holdings, Inc.															Walnut Creek, CA
Term Loan (SBIC)	(2)(13)(22)	First Lien	3M L+7.50%		1.00	%		10.78	%				3/30/2018	3/30/2023	Automotive	$	9,750,000		9,585,916		9,506,250		3.55	%
Keais Records Service, LLC															Houston, TX
Keais Holdings, LLC Class A Units	(4)	Equity											12/22/2016		Services: Business		148,335 units		735,198		910,000		0.34	%
KidKraft, Inc.															Dallas, TX
Term Loan	(6)	Second Lien	12.00%					11.00	%		1.00	%	9/30/2016	3/30/2022	Consumer Goods: Durable	$	9,431,895		9,314,831		9,007,460		3.36	%
Livingston International, Inc.															Toronto, Ontario
Term Loan	(5)(12)	Second Lien	1M L+8.25%		1.25	%		10.75	%				4/23/2013	4/18/2020	Transportation: Cargo	$	6,841,739		6,814,294		6,841,739		2.55	%
Madison Logic, Inc.															New York, NY
Term Loan (SBIC)	(2)(12)	First Lien	1M L+8.00%		0.50	%		10.50	%				11/30/2016	11/30/2021	Media: Broadcasting & Subscription	$	4,698,998		4,671,411		4,698,998		1.75	%
Madison Logic Holdings, Inc. Common Stock (SBIC)	(2)(4)	Equity											11/30/2016				5,000 shares		50,000		50,000		0.02	%
Madison Logic Holdings, Inc. Series A Preferred Stock (SBIC)	(2)(4)	Equity											11/30/2016				4,500 shares		450,000		420,000		0.16	%
Total																		$	5,171,411	$	5,168,998		1.93	%
Magdata Intermediate Holdings, LLC															Austin TX
Term Loan	(12)	Second Lien	3M L+9.50%		1.00	%		12.11	%				10/16/2017	4/16/2024	Software	$	14,750,000		14,499,743		14,307,500		5.34	%
Mobileum, Inc.															Santa Clara, CA
Term Loan	(12)	Second Lien	3M L+10.25%		0.75	%		12.86	%				11/1/2016	5/1/2022	Software	$	21,500,000		21,184,523		21,500,000		8.03	%
Mobile Acquisition Holdings, LP Class A-2 Common Units	(4)	Equity											11/1/2016				750 units		455,385		1,050,000		0.39	%
Total																		$	21,639,908	$	22,550,000		8.42	%
National Trench Safety, LLC, et al															Houston, TX
Term Loan (SBIC)	(2)	Second Lien	11.50%					11.50	%				3/31/2017	3/31/2022	Construction & Building	$	10,000,000		9,882,830		9,800,000		3.66	%
NTS Investors, LP Class A Common Units	(4)	Equity											3/31/2017				2,335 units		500,000		390,000		0.15	%
Total																		$	10,382,830	$	10,190,000		3.81	%

Stellus Capital Investment Corporation

Consolidated Schedule of Investments (unaudited)

March 31, 2019

Investments	Footnotes	Security	Coupon	LIBOR floor			Cash			PIK			Investment Date	Maturity	Headquarters/ Industry	Principal Amount/ Shares		Amortized Cost		Fair Value ⁽¹⁾		% of Net Assets

NGS US Finco, LLC															Bradford, PA
Term Loan (SBIC)	(2)(12)	Second Lien	1M L+8.50%		1.00	%		11.00	%				10/4/2018	4/1/2026	Utilities: Oil & Gas	$	10,000,000		9,856,955		9,400,000		3.51	%
Nutritional Medicinals, LLC	(24)														Centerville, OH
Term Loan	(12)	First Lien	3M L+6.00%		1.00	%		8.61	%				11/15/2018	11/15/2023	Healthcare & Pharmaceuticals	$	15,461,250		15,173,200		14,842,800		5.54	%
Functional Aggregator, LLC Common Units	(4)	Equity											11/15/2018				12,500 shares		1,250,000		1,370,000		0.51	%
Total																		$	16,423,200	$	16,212,800		6.05	%
PCP MT Aggregator Holdings, L.P.															Oak Brook, IL
Common LP Units	(4)	Equity											3/29/2019		Finance		750,000 shares		0		750,000		0.28	%
Premiere Digital Services, Inc.	(10)														Los Angeles, CA
Term Loan (SBIC)	(2)(13)(22)	First Lien	3M L+5.50%		1.50	%		9.39	%				10/18/2018	10/18/2023	Media: Broadcasting & Subscription	$	8,250,000		8,028,817		7,796,250		2.91	%
Term Loan	(13)(22)	First Lien	3M L+5.50%		1.50	%		9.39	%				10/18/2018	10/18/2023		$	2,428,772		2,363,657		2,295,190		0.86	%
Premiere Digital Holdings, Inc., Common Stock	(4)	Equity											10/18/2018				5,000 shares		50,000		50,000		0.02	%
Premiere Digital Holdings, Inc., Preferred Stock	(4)	Equity											10/18/2018				4,500 shares		450,000		470,000		0.18	%
Total																		$	10,892,474	$	10,611,440		3.97	%
Price for Profit, LLC	(17)														Cleveland, OH
Term Loan (SBIC)	(2)(12)	First Lien	3M L+6.50%		1.00	%		9.11	%				1/31/2018	1/31/2023	Services: Business	$	8,818,907		8,677,641		8,818,907		3.29	%
I2P Holdings, LLC, Series A Preferred	(4)	Equity											1/31/2018				750,000 shares		750,000		1,490,000		0.56	%
Total																		$	9,427,641	$	10,308,907		3.85	%
Protect America, Inc.															Austin TX
Term Loan (SBIC)	(2)(6)(12)	Second Lien	3M L+7.75%		1.00	%		10.38	%		0.00	%	8/30/2017	10/30/2020	Services: Consumer	$	17,979,749		17,744,354		17,710,053		6.61	%
Refac Optical Group, et al															Blackwood, NJ
Revolver	(9)(11)(12)	First Lien	1M L+8.00%					0.00	%				11/7/2012	9/30/2018	Retail	$	880,000		880,000		880,000		0.33	%
Term A Loan	(9)(12)	First Lien	1M L+8.00%					0.00	%				11/7/2012	9/30/2018		$	472,968		472,968		472,968		0.18	%
Term B Loan	(6)(9)(12)	First Lien	1M L+10.75%					0.00	%		0.00	%	11/7/2012	9/30/2018		$	6,539,666		6,539,666		5,787,604		2.16	%
Total																		$	7,892,634	$	7,140,572		2.67
Skopos Financial, LLC															Irving, TX
Term Loan	(5)	Unsecured	12.00%					12.00	%				1/31/2014	1/31/2020	Finance	$	17,500,000		17,500,000		17,325,000		6.47	%
Skopos Financial Group, LLC Class A Units	(4)(5)	Equity											1/31/2014				1,120,684 units		1,162,544		1,110,000		0.41	%
Total																		$	18,662,544	$	18,435,000		6.88	%
Specified Air Solutions, LLC															Buffalo, NY
Class A Common Units	(4)	Equity											6/30/2017		Construction & Building		3,846 shares		0		250,000		0.09	%
SQAD, LLC															Tarrytown, NY
Term Loan (SBIC)	(2)(12)	First Lien	3M L+6.50		1.00	%		9.10	%				12/22/2017	12/22/2022	Media: Broadcasting & Subscription	$	14,807,500		14,745,536		14,585,388		5.45	%
SQAD Holdco, Inc. Preferred Shares, Series A (SBIC)	(2)(4)	Equity											10/31/2013				5,624 shares		156,001		450,000		0.17	%
SQAD Holdco, Inc. Common Shares (SBIC)	(2)(4)	Equity											10/31/2013				5,800 shares		62,485		50,000		0.02	%
Total																		$	14,964,022	$	15,085,388		5.64	%
TechInsights, Inc.															Ottawa, Ontario
Term Loan	(5)(13)(22)	First Lien	3M L+6.00%		1.00	%		10.11	%				8/16/2017	10/2/2023	High Tech Industries	$	21,540,925		21,119,990		21,110,107		7.88	%
Time Manufacturing Acquisition, LLC															Waco, TX
Term Loan	(6)	Unsecured	11.50%					10.75	%		0.75	%	2/3/2017	8/3/2023	Capital Equipment	$	6,385,182		6,289,917		6,289,404		2.35	%
Time Manufacturing Investments, LLC Class A Common Units	(4)	Equity											2/3/2017				5,000 units		500,000		560,000		0.21	%
Total																		$	6,789,917	$	6,849,404		2.56	%

Stellus Capital Investment Corporation

Consolidated Schedule of Investments (unaudited)

March 31, 2019

Investments	Footnotes	Security	Coupon	LIBOR floor			Cash			PIK	Investment Date	Maturity	Headquarters/ Industry	Principal Amount/ Shares		Amortized Cost		Fair Value ⁽¹⁾			% of Net Assets

TFH Reliability, LLC													Houston, TX
Term Loan (SBIC)	(2)(12)	Second Lien	3M L+10.75%		0.50	%		13.36	%		10/21/2016	4/21/2022	Chemicals, Plastics, & Rubber	$	5,875,000		5,798,877		5,875,000			2.19	%
TFH Reliability Group, LLC Class A Common Units	(4)	Equity									10/21/2016				250,000 shares		231,521		340,000			0.13	%
Total																$	6,030,398	$	6,215,000			2.32	%
U.S. Auto Sales, Inc. et al													Lawrenceville, GA
Term Loan	(5)(12)	Second Lien	1M L+10.50%		1.00	%		12.99	%		6/8/2015	6/8/2020	Finance	$	4,500,000		4,487,033		4,500,000			1.68	%
USASF Blocker II, LLC Common Units	(4)(5)	Equity									6/8/2015				441 units		441,000		550,000			0.21	%
USASF Blocker III, LLC Series C Preferred Units	(4)(5)	Equity									2/13/2018				50 Units		50,000		60,000			0.02
USASF Blocker LLC Common Units	(4)(5)	Equity									6/8/2015				9,000 units		9,000		10,000			0.00	%
Total																$	4,987,033	$	5,120,000			1.91	%
VRI Intermediate Holdings, LLC													Franklin, OH
Term Loan (SBIC)	(2)(12)	Second Lien	3M L+9.25%		1.00	%		11.86	%		5/31/2017	10/31/2020	Healthcare & Pharmaceuticals	$	9,000,000		8,908,233		8,865,000			3.31	%
VRI Ultimate Holdings, LLC Class A Preferred Units	(4)	Equity									5/31/2017				326,797 shares		500,000		520,000			0.19	%
Total																$	9,408,233	$	9,385,000			3.50	%
Wise Holding Corporation													Salt Lake City, UT
Term Loan	(12)(20)	Unsecured	3M L+11.00%		1.00	%		0.00	%		6/30/2016	12/31/2021	Beverage, Food, & Tobacco	$	1,250,000		1,239,020		0			0.00	%
Delayed Draw Term Loan	(12)(21)	First Lien	P+7.5%		2.00	%		0.00	%		8/27/2018	6/30/2021		$	253,906		253,906		85,059			0.03	%
Wise Parent Company, LLC Membership Units	(4)	Equity									8/27/2018				1 units		58,594		0			0.00	%
Total																$	1,551,520	$	85,059			0.03	%

Total Non-controlled, non-affiliated investments																	520,096,508		517,411,814			193.21	%
Net Investments																	520,096,508		517,411,814			193.21	%
LIABILITIES IN EXCESS OF OTHER ASSETS																			(249,612,570	)		(93.21	)%
NET ASSETS																			267,799,244			100.00	%

(1)

See Note 1 of the Notes to the Consolidated Financial Statements for a discussion of the methodologies used to value securities in the portfolio.

(2)

Investments held by the SBIC subsidiary, which include $9,652,005 of cash and $217,381,091 of investments (at cost), are excluded from the obligations to the lenders of the Credit Facility. The Company’s obligations to the lenders of the Credit Facility, as defined in Note 9, are secured by a first priority security interest in all investments and cash and cash equivalents, except for investments held by the SBIC Subsidiary.

(3)	Excluded from the investment is an undrawn delayed draw term loan commitment in an amount not to exceed $865,385, with an interest rate of LIBOR plus 7.50% and a maturity of June 30, 2023. This investment is accruing an unused commitment fee of 0.375% per annum.

(4)	Security is non-income producing.

(5)

The investment is not a qualifying asset under the Investment Company Act of 1940, as amended. The Company may not acquire any non-qualifying assets unless, at the time of the acquisition, qualifying assets represent at least 70% of the Company’s total assets. Qualifying

assets represent approximately 88% of the Company’s total assets as of March 31, 2019.

(6)	Represents a PIK interest security. At the option of the issuer, interest can be paid in cash or cash and PIK interest. The percentage of PIK interest shown is the maximum PIK interest that can be elected by the issuer.

(7)	Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $666,666, with an interest rate of LIBOR plus 6.25% and a maturity of June 29, 2022. This investment is accruing an unused commitment fee of 0.50% per annum.

Stellus Capital Investment Corporation

Consolidated Schedule of Investments (unaudited)

March 31, 2019

(8)	Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $2,000,000, with an interest rate of LIBOR plus 5.75% and a maturity of August 8, 2023. This investment is accruing an unused commitment fee of 0.50% per annum.

(9)	Investment has been on non-accrual since November 30, 2018.
(10)	Excluded from the investment is an undrawn delayed draw term loan commitment in an amount not to exceed $3,669,681 with an interest rate of LIBOR plus 5.50% and a maturity of October 18, 2023. This investment is accruing an unused commitment fee of 0.50% per annum.
(11)	Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $520,000, with an interest rate of LIBOR plus 8.00% and a maturity of September 30, 2018. This investment is not accruing an unused commitment fee.
(12)	These loans have LIBOR floors that are lower than the applicable LIBOR rates; therefore, the floors are not in effect.
(13)	These loans are last-out term loans with contractual rates higher than the applicable LIBOR rates; therefore, the floors are not in effect.
(14)	Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $1,500,000, with an interest rate of LIBOR plus 5.75% and a maturity of February 8, 2024. This investment is accruing an unused commitment fee of 0.50% per annum.
(15)	Investment has been on non-accrual since October 31, 2017.
(16)	Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $1,000,000, with an interest rate of LIBOR plus 7.75% and a maturity of February 5, 2023. This investment is accruing an unused commitment fee of 0.50% per annum.
(17)	Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $1,500,000, with an interest rate of LIBOR plus 6.50% and a maturity of January 31, 2023. This investment is accruing an unused commitment fee of 0.50% per annum.
(18)	Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $750,000, with an interest rate of LIBOR plus 7.50% and a maturity of April 13, 2023. This investment is accruing an unused commitment fee of 0.50% per annum.
(19)	Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $764,059, with an interest rate of LIBOR plus 6.25% and a maturity of September 26, 2023. This investment is accruing an unused commitment fee of 0.50% per annum.
(20)	Investment has been on non-accrual since March 29, 2018.
(21)	Investment has been on non-accrual since October 31, 2018.
(22)	This loan is a unitranche investment.
(23)	Excluded from the investment is an undrawn delayed draw term loan commitment in an amount not to exceed $1,662,592, with an interest rate of LIBOR plus 6.25% and a maturity of September 26, 2023. This investment is not accruing an unused commitment fee.
(24)	Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $2,000,000 with an interest rate of LIBOR plus 6.00% and a maturity of November 15, 2023. This investment is accruing an unused commitment fee of 0.50% per annum.
(25)	Excluded from the investment is an undrawn delayed draw term commitment in an amount not to exceed $4,000,000, with an interest rate of LIBOR plus 5.75% and a maturity of February 8, 2024. This investment is accruing an unused commitment fee of 0.50% per annum.

Abbreviation Legend
PIK — Payment-In-Kind
L — LIBOR
Euro — Euro Dollar

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2018

Investments	Footnotes	Security	Coupon	LIBOR floor			Cash			PIK	Investment Date	Maturity	Headquarters/ Industry	Principal Amount/ Shares		Amortized Cost		Fair Value⁽¹⁾		% of Net Assets
Non-controlled, affiliated investments	(2)
Glori Energy Production Inc.													Houston, TX
Glori Energy Production, LLC Class A Common Units	(4)	Equity									2/1/2017		Energy: Oil & Gas		1,000 shares	$	52,185	$	50,000		0.02	%
Subtotal Non-controlled, affiliated investments																	52,185		50,000		0.02	%
Non-controlled, non-affiliated investments	(2)
Abrasive Products & Equipment, LLC, et al													Deer Park, TX
Term Loan (SBIC)	(2)(12)(20)	Second Lien	3M L+10.50%		1.00	%		0.00	%		9/5/2014	3/5/2020	Chemicals, Plastics, & Rubber	$	5,325,237		5,294,907		4,712,835		2.10	%
APE Holdings, LLC Class A Common Units	(4)	Equity									9/5/2014				375,000 units		375,000		0		0.00	%
Total																	5,669,907		4,712,835		2.10	%
Adams Publishing Group, LLC	(3)												Greenville, TN
Term Loan	(12)	First Lien	3M L+7.50%		1.00	%		9.93	%		8/3/2018	6/30/2023	Media: Broadcasting & Subscription	$	7,125,000		7,058,675		6,875,625		3.06	%
Advanced Barrier Extrusions, LLC	(8)												Rhinelander, WI
Term Loan (SBIC)	(2)(12)	First Lien	3M L+5.75%		1.00	%		8.56	%		8/8/2018	8/8/2023	Containers, Packaging & Glass	$	11,400,000		11,187,711		10,659,000		4.74	%
GP ABX Holdings Partnership, L.P. Common Stock	(4)	Equity									8/8/2018				250,000 units		250,000		210,000		0.09	%
Total																	11,437,711		10,869,000		4.83	%
Apex Environmental Resources Holdings, LLC													Amsterdam, OH
Common Units	(4)	Equity									10/30/2015		Environmental Industries		945 shares		945		0		0.00	%
Preferred Units	(4)	Equity													945 shares		945,179		330,000		0.15	%
Total											10/30/2015						946,124		330,000		0.15	%
APG Intermediate Sub 2 Corp.													Castle Rock, CO
Term Loan	(13)(22)	First Lien	3M L+6.00%		1.00	%		10.05	%		11/30/2018	11/30/2023	Services: Business		10,000,000		9,777,822		9,777,822		4.35	%
APG Holdings, LLC Class A Preferred Units	(4)	Equity									11/30/2018				1,000,000 units		1,000,000		1,000,000		0.44	%
Total																	10,777,822		10,777,822		4.79	%
Atmosphere Aggregator Holdings II, LP													Atlanta, GA
Common Units	(4)	Equity									6/30/2015		Services: Business		254,250 units		254,250		1,190,000		0.53	%
Atmosphere Aggregator Holdings, LP Common Units	(4)	Equity									6/30/2015				750,000 units		750,000		3,510,000		1.56	%
Total																	1,004,250		4,700,000		2.09	%

See accompanying notes to these consolidated financial statements.

Stellus Capital Investment Corporation

Consolidated Schedule of Investments – (continued)

December 31, 2018

Investments	Footnotes	Security	Coupon	LIBOR floor			Cash			PIK			Investment Date	Maturity	Headquarters/ Industry	Principal Amount/ Shares		Amortized Cost		Fair Value⁽¹⁾		% of Net Assets
ASC Communications, LLC	(7)														Chicago, IL
Term Loan (SBIC)	(2)(12)	First Lien	1M L+5.75%		1.00	%		8.27	%				6/29/2017	6/29/2022	Healthcare & Pharmaceuticals	$	5,083,335	$	5,045,552	$	5,057,916		2.25	%
ASC Communications Holdings, LLC Class A Preferred Units (SBIC)	(2)(4)	Equity											6/29/2017				73,529 shares		483,540		800,000		0.36	%
Total																			5,529,092		5,857,916		2.61	%
Beneplace, LLC															Austin TX
Term Loan (SBIC)	(2)(12)	Second Lien	3M L+10.00%		1.00	%		12.81	%				3/27/2017	9/27/2022	FIRE: Insurance	$	5,000,000		4,925,301		4,950,000		2.20	%
Beneplace Holdings, LLC Preferred Units	(4)	Equity											3/27/2017				500,000 units		500,000		510,000		0.23	%
Total																			5,425,301		5,460,000		2.43	%
BFC Solmetex, LLC	(23)														Nashville, TN
Revolver	(12)(19)	First Lien	3M L+6.25%		1.00	%		9.06	%				4/2/2018	9/26/2023	Services: Business	$	305,623		305,623		288,814		0.13	%
Term Loan (SBIC)	(2)(12)	First Lien	3M L+6.25%		1.00	%		9.06	%				4/2/2018	9/26/2023		$	11,711,033		11,552,684		11,066,926		4.92	%
Bonded Filter Co. LLC, Term Loan (SBIC)	(2)(12)	First Lien	3M L+6.25%		1.00	%		9.06	%				4/2/2018	9/26/2023		$	1,216,687		1,200,236		1,149,769		0.51	%
Total																			13,058,543		12,505,509		5.56	%
BW DME Acquisition, LLC															Tempe, AZ
Term Loan (SBIC)	(2)(13)(22)	First Lien	3M L+6.00%		1.00	%		10.50	%				8/24/2017	8/24/2022	Healthcare & Pharmaceuticals	$	16,695,804		16,297,319		16,111,451		7.17	%
BW DME Holdings, LLC, Term Loan (SBIC)	(6)	Unsecured	17.50%								17.50	%	6/1/2018	12/31/2019		$	277,635		277,635		277,635		0.12	%
BW DME Holdings, LLC Class A-1 Preferred Units	(4)	Equity