NOTES

12 Months Ended

Dec. 31, 2024

NOTES

NOTES

NOTE 11 — NOTES

On January 14, 2021, the Company issued $100,000,000 in aggregate principal amount of 4.875% fixed-rate notes due 2026 (the “Notes Payable”). The Notes Payable will mature on March 30, 2026, and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after December 31, 2025 at a redemption price equal to 100% of the outstanding principal, plus accrued and unpaid interest. Interest on the Notes Payable is payable semi-annually beginning September 30, 2021.

The Company used the net proceeds from the Notes Payable offering to fully redeem the Company’s 5.75% fixed-rate notes due September 15, 2022 (the “2022 Notes”) and repay a portion of the amount outstanding under the Credit Facility. As of December 31, 2024, the aggregate carrying amount of the Notes Payable was $99,444,355.

The Notes Payable are institutional, non-traded notes. The Notes Payable are carried at cost. At the measurement date, the estimated fair value of the Notes Payable as prepared for disclosure purposes was $96,606,000. See Note 1 to the Consolidated Financial Statements for further discussion regarding the fair value measurements and hierarchy.

In connection with the issuance and maintenance of the Notes Payable, the Company incurred $2,327,835 of fees, which are being amortized over the term of the Notes Payable, of which $555,645 and $1,003,588 remains to be amortized as of December 31, 2024 and 2023, respectively. These financing costs are presented on the Consolidated Statements of Assets and Liabilities as a deduction from the debt liability.

The following is a summary of the Notes Payable, net of deferred financing costs:

	December 31, 2024		December 31, 2023
Notes Payable	$	100,000,000	$	100,000,000
Deferred financing costs		(555,645)		(1,003,588)
Notes Payable, net of deferred financing costs	$	99,444,355	$	98,996,412

The following table summarizes the interest expense and deferred financing costs on the Notes Payable for the years ended December 31, 2024, 2023, and 2022:

	For the year ended
	December 31, 2024			December 31, 2023			December 31, 2022
Interest expense	$	4,881,000		$	4,881,000		$	4,885,000
Deferred financing costs		447,943			446,720			446,719
Total interest and financing expenses	$	5,328,943		$	5,327,720		$	5,331,719
Weighted average interest rate		4.9	%		4.9	%		4.9	%
Effective interest rate (including fee amortization)		5.3	%		5.3	%		5.3	%
Average debt outstanding	$	100,000,000		$	100,000,000		$	100,000,000
Cash paid for interest	$	4,881,000		$	4,881,000		$	4,885,000

The indenture and supplements thereto relating to the Notes Payable contain certain covenants, including but not limited to (i) a requirement that the Company comply with the asset coverage requirements of the 1940 Act or any successor provisions, and (ii) a requirement to provide financial information to the holders of the notes and the trustee under the indenture if the Company should no longer be subject to the reporting requirements under the Exchange Act. As of December 31, 2024, the Company was in compliance with these covenants.