UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_____________________________________________________

Form 10-Q

____________________________________________________

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

For the Quarterly Period Ended June 30, 2021

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

For the transition period from to

Commission file number: 814-00924

_____________________________________________________

Sierra Income Corporation

(Exact Name of Registrant as Specified in its Charter)

_____________________________________________________

Maryland						45-2544432
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)
100 Park Avenue New York, NY 10017
(Address of Principal Executive Offices)

(212) 759-0777

(Registrant’s Telephone Number, Including Area Code)

___________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

___________________________________________________

Securities registered pursuant to Section 12(b) of the Exchange Act: None

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 ☒ 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 during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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:

Large accelerated filer	☐	Accelerated filer	☐
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 ☒

As of August 13, 2021, the Registrant had 102,146,053 shares of common stock, $0.001 par value, outstanding.

Table of Contents

TABLE OF CONTENTS

Part I. Financial Information
Item 1. Financial Statements
Consolidated Statements of Assets and Liabilities as of June 30, 2021 (unaudited) and December 31, 2020			F-1
Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020 (unaudited)			F-2
Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2021 and 2020 (unaudited)			F-3
Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020 (unaudited)			F-4
Consolidated Schedule of Investments as of June 30, 2021 (unaudited)			F-5
Consolidated Schedule of Investments as of December 31, 2020			F-13
Notes to Consolidated Financial Statements (unaudited)			F-21
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			1
Item 3. Quantitative and Qualitative Disclosures About Market Risk			15
Item 4. Controls and Procedures			16
Part II. Other Information
Item 1. Legal Proceedings			16
Item 1A. Risk Factors			16
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			17
Item 3. Defaults Upon Senior Securities			17
Item 4. Mine Safety Disclosures			17
Item 5. Other Information			17
Item 6. Exhibits			17
SIGNATURES			18

Table of Contents

Sierra Income Corporation

Consolidated Statements of Assets and Liabilities

	June 30, 2021			December 31, 2020
ASSETS	(unaudited)
Investments at fair value
Non-controlled/non-affiliated investments (amortized cost of $512,940,700 and $521,483,006 respectively)	$	497,021,783		$	472,813,820
Controlled/affiliated investments (amortized cost of $180,295,779 and $179,520,933 respectively)		134,324,944			131,172,660
Investments at fair value		631,346,727			603,986,480
Cash and cash equivalents		54,134,677			65,301,216
Interest receivable from investments		4,884,583			3,943,980
Unsettled trades receivable		556,554			2,541,500
Prepaid expenses and other assets		589,036			1,934,866
Total assets	$	691,511,577		$	677,708,042

LIABILITIES
Revolving credit facilities payable (net of deferred financing costs of $0 and $659,266, respectively) (Note 5)	$	124,200,000		$	144,340,734
Deferred tax liability		4,214,716			2,390,596
Base management fees payable (Note 6)		3,025,363			2,967,857
Accounts payable and accrued expenses		2,462,370			1,406,175
Payable for Company shares redeemed		2,173,629			—
Taxes Payable		680,947			—
Administrator fees payable (Note 6)		549,544			401,260
Interest payable		374,521			449,420
Unsettled trades payable		—			11,061
Total liabilities		137,681,090			151,967,103

Commitments (Note 10)

NET ASSETS
Common shares, par value $0.001 per share, 250,000,000 common shares authorized, 102,080,498 and 102,630,605 common shares issued and outstanding, respectively		102,081			102,631
Capital in excess of par value		847,731,674			850,737,609
Total distributable earnings/(loss)		(294,003,268	)		(325,099,301	)
Total net assets		553,830,487			525,740,939
Total liabilities and net assets	$	691,511,577		$	677,708,042
NET ASSET VALUE PER COMMON SHARE	$	5.43		$	5.12

See accompanying notes to consolidated financial statements.

F-1

Table of Contents

Sierra Income Corporation

Consolidated Statements of Operations

(unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
INVESTMENT INCOME
Interest and dividend income from investments
Non-controlled/non-affiliated investments:
Cash	$	11,943,800		$	10,682,719		$	21,071,686		$	18,008,572
Payment-in-kind		545,892			472,844			982,353			1,009,889
Controlled/affiliated investments:
Cash		1,977,492			(28,696	)		3,881,206			1,817,381
Payment-in-kind		94,388			115,628			188,557			230,391
Total interest and dividend income		14,561,572			11,242,495			26,123,802			21,066,233
Fee income (Note 11)		409,724			312,935			766,482			434,633
Interest from cash and cash equivalents		10,266			144,024			15,933			1,375,399
Total investment income		14,981,562			11,699,454			26,906,217			22,876,265

EXPENSES
Base management fees (Note 6)		3,025,363			2,944,745			6,091,760			6,196,196
Interest and financing expenses		1,397,723			3,454,940			3,084,782			7,742,603
General and administrative expenses		2,238,942			8,307,229			3,850,569			10,278,197
Professional fees		1,934,321			11,089,264			2,658,503			11,207,318
Administrator expenses (Note 6)		582,279			669,025			1,225,899			1,390,657
Offering costs		5,156			1,914			5,156			5,157
Total expenses		9,183,784			26,467,117			16,916,669			36,820,128

Income tax expense		685,309			—			1,938,320			—

NET INVESTMENT INCOME/(LOSS)		5,112,469			(14,767,663	)		8,051,228			(13,943,863	)

REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) from non-controlled/non-affiliated investments		(4,334,926	)		(8,265,767	)		(4,301,895	)		(8,280,680	)
Net realized gain/(loss) from controlled/affiliated investments		161,607			—			199,371			232,392
Net change in unrealized appreciation/(depreciation) on non-controlled/non-affiliated investments		21,227,490			22,547,805			32,749,077			(66,450,775	)
Net change in unrealized appreciation/(depreciation) on controlled/affiliated investments		(1,121,699	)		9,456,310			2,377,438			(22,068,330	)
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments		(2,632,090	)		(293,783	)		(1,824,121	)		(52,848	)
Net realized and unrealized gain/(loss) on investments		13,300,382			23,444,565			29,199,870			(96,620,241	)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	18,412,851		$	8,676,902		$	37,251,098		$	(110,564,104	)

WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS/(LOSS) PER COMMON SHARE	$	0.18		$	0.08		$	0.36		$	(1.08	)
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME/(LOSS) PER COMMON SHARE	$	0.05		$	(0.14	)	$	0.08		$	(0.14	)
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED (NOTE 9)		102,380,357			102,856,314			102,575,026			102,785,734
DISTRIBUTIONS DECLARED PER COMMON SHARE	$	0.03		$	—		$	0.06		$	0.11

See accompanying notes to the consolidated financial statements.

F-2

Table of Contents

Sierra Income Corporation

Consolidated Statements of Changes in Net Assets

(unaudited)

	Common Stock
				Par			Paid in Capital			Distributable			Total
	Shares			Amount			in Excess of Par			Earnings			Net Assets
Balance at March 31, 2021		102,839,640		$	102,840		$	851,722,263		$	(309,342,023	)	$	542,483,080
Net increase (decrease) in net assets resulting from operations:
Net investment income/(loss)		—			—			—			5,112,469			5,112,469
Net realized gain (loss) on investments		—			—			—			(4,173,319	)		(4,173,319	)
Net change in unrealized appreciation/(depreciation) on investments		—			—			—			20,105,791			20,105,791
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments		—			—			—			(2,632,090	)		(2,632,090	)
Shareholder distributions:
Issuance of common shares pursuant to distribution reinvestment plan		202,889			203			1,016,188			—			1,016,391
Repurchase of common shares		(962,031	)		(962	)		(5,006,777	)		—			(5,007,739	)
Distributions from earnings		—			—			—			(3,074,096	)		(3,074,096	)
Total increase/(decrease) for the three months ended June 30, 2020		(759,142	)		(759	)		(3,990,589	)		15,338,755			11,347,407
Balance at June 30, 2021		102,080,498		$	102,081		$	847,731,674		$	(294,003,268	)	$	553,830,487

Balance at December 31, 2020		102,630,605		$	102,631		$	850,737,609		$	(325,099,301	)	$	525,740,939
Net increase/(decrease) in net assets resulting from operations:
Net investment income/(loss)		—			—			—			8,051,228			8,051,228
Net realized gain/(loss) on investments		—			—			—			(4,102,524	)		(4,102,524	)
Net change in unrealized appreciation/(depreciation) on investments		—			—			—			35,126,515			35,126,515
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments		—			—			—			(1,824,121	)		(1,824,121	)
Shareholder distributions:
Issuance of common shares pursuant to distribution reinvestment plan		414,375			414			2,042,163			—			2,042,577
Repurchase of common shares		(964,482	)		(964	)		(5,048,098	)		—			(5,049,062	)
Distributions from earnings		—			—			—			(6,155,065	)		(6,155,065	)
Total increase/(decrease) for the six months ended June 30, 2021		(550,107	)		(550	)		(3,005,935	)		31,096,033			28,089,548
Balance at June 30, 2021		102,080,498		$	102,081		$	847,731,674		$	(294,003,268	)	$	553,830,487

Balance at March 31, 2020		102,867,551		$	102,868		$	872,688,536		$	(408,540,080	)	$	464,251,324
Net increase (decrease) in net assets resulting from operations:
Net investment income/(loss)		—			—			—			(14,767,663	)		(14,767,663	)
Net realized gain (loss) on investments		—			—			—			(8,265,767	)		(8,265,767	)
Net change in unrealized appreciation/(depreciation) on investments		—			—			—			32,004,115			32,004,115
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments		—			—			—			(293,783	)		(293,783	)
Shareholder distributions:
Repurchase of common shares		(34,086	)		(35	)		(153,693	)		—			(153,728	)
Distributions from earnings		—			—			—			(15,578	)		(15,578	)
Total increase/(decrease) for the three months ended June 30, 2021		(34,086	)		(35	)		(153,693	)		8,661,324			8,507,596
Balance at June 30, 2020		102,833,465		$	102,833		$	872,534,843		$	(399,878,756	)	$	472,758,920

Balance at December 31, 2019		102,282,366		$	102,282		$	869,567,685		$	(278,607,246	)	$	591,062,721
Net increase/(decrease) in net assets resulting from operations:
Net investment income/(loss)		—			—			—			(13,943,863	)		(13,943,863	)
Net realized gain/(loss) on investments		—			—			—			(8,048,288	)		(8,048,288	)
Net change in unrealized appreciation/(depreciation) on investments		—			—			—			(88,519,105	)		(88,519,105	)
Change in provision for deferred taxes on unrealized appreciation/(depreciation) on investments		—			—			—			(52,848	)		(52,848	)
Shareholder distributions:
Issuance of common shares pursuant to distribution reinvestment plan		710,046			711			3,842,420			—			3,843,131
Repurchase of common shares		(158,947	)		(160	)		(875,262	)		—			(875,422	)
Distributions from earnings		—			—			—			(10,707,406	)		(10,707,406	)
Total increase/(decrease) for the six months ended June 30, 2020		551,099			551			2,967,158			(121,271,510	)		(118,303,801	)
Balance at June 30, 2020	$	102,833,465		$	102,833		$	872,534,843		$	(399,878,756	)	$	472,758,920

See accompanying notes to consolidated financial statements.

F-3

Table of Contents

Sierra Income Corporation

Consolidated Statements of Cash Flows

(unaudited)

	Six Months Ended June 30,
	2021			2020
Cash flows from operating activities
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS:	$	37,251,098		$	(110,564,104	)
ADJUSTMENT TO RECONCILE NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES:
Payment-in-kind interest income		(1,170,910	)		(1,240,280	)
Net amortization of premium on investments		(295,526	)		(174,522	)
Amortization of deferred financing costs		659,266			1,579,789
Net realized (gain)/loss on investments		4,102,524			8,048,288
Net change in unrealized (appreciation)/depreciation on investments		(35,126,515	)		88,519,105
Purchases and originations		(80,042,210	)		(66,572,171	)
Proceeds from sale of investments and principal repayments		85,172,390			64,582,263
(Increase)/decrease in operating assets:
Unsettled trades receivable		1,984,946			(709,532	)
Interest receivable from investments		(940,603	)		4,265,188
Deferred transaction costs		—			14,993,778
Prepaid expenses and other assets		1,345,830			1,156,532
Increase/(decrease) in operating liabilities:
Unsettled trades payable		(11,061	)		247,500
Base management fee payable		57,506			(1,115,773	)
Transaction costs payable		—			(426,172	)
Accounts payable and accrued expenses		1,056,195			(639,338	)
Administrator fees payable		148,284			287,101
Interest payable		(74,899	)		(1,003,027	)
Taxes Payable		680,947			—
Deferred tax liability		1,824,120			52,848
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES		16,621,382			1,287,473
Cash flows from financing activities:
Repayments of revolving credit facility		(20,800,000	)		(134,286,928	)
Payment of cash distributions		(4,112,488	)		(6,864,275	)
Financing costs paid		—			(299,525	)
Repurchase of common shares		(2,875,433	)		(721,694	)
NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES		(27,787,921	)		(142,172,422	)
TOTAL INCREASE/(DECREASE) IN CASH		(11,166,539	)		(140,884,949	)
CASH, CASH EQUIVALENTS AT BEGINNING OF PERIOD		65,301,216			225,316,656
CASH, CASH EQUIVALENTS AT END OF PERIOD	$	54,134,677		$	84,431,707
Supplemental Information:
Cash paid during the period for interest	$	2,500,415		$	7,165,841
Supplemental non-cash information:
Issuance of common shares in connection with distribution reinvestment plan	$	2,042,577		$	3,843,131

See accompanying notes to consolidated financial statements.

F-4

Table of Contents

Sierra Income Corporation

Consolidated Schedule of Investments

As of June 30, 2021

(unaudited)

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Non-controlled/non-affiliated investments –	89.7%

AAAHI Acquisition Corporation	Transportation: Consumer	Senior Secured First Lien Term Loan LIBOR + 8.250%, 1.000% Floor ⁽⁴⁾ ^{(5) (6)}	12/10/2023	$	7,233,985	$	6,853,763	$	5,425,489		1.0	%
					7,233,985		6,853,763		5,425,489
Alpine SG, LLC	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor ⁽⁴⁾ ^{(5) (11)}	11/16/2022		1,262,051		1,238,587		1,269,497		0.2	%
		Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.750%, 1.000% Floor ^{(4) (5)}	6/1/2028		2,410,036		2,361,836		2,361,836		0.4	%
		Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.750%, 1.000% Floor ^{(4) (5)}	11/16/2022		6,165,725		6,165,653		5,982,603		1.1	%
		Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor ^{(4) (5)}	11/16/2022		12,529,258		12,520,344		12,157,139		2.2	%
					22,367,070		22,286,420		21,771,075
Amerijet Holdings, Inc.	Transportation: Cargo	Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(5) (7)}	7/15/2021		2,540,018		2,540,018		2,540,018		0.5	%
					2,540,018		2,540,018		2,540,018
AMMC CLO 22, Limited Series 2018-22A	Multi-Sector Holdings	Subordinated Notes 13.510% effective yield ⁽⁸⁾ ^{(9) (10)}	4/25/2031		7,222,000		5,189,030		4,887,850		0.9	%
					7,222,000		5,189,030		4,887,850
AMMC CLO 23, Ltd. Series 2020-23A	Multi-Sector Holdings	Subordinated Notes 14.426% effective yield ⁽⁸⁾ ^{(9) (10)}	10/17/2031		2,000,000		1,640,734		1,599,800		0.3	%
					2,000,000		1,640,734		1,599,800
Apidos CLO XXIV, Series 2016-24A	Multi-Sector Holdings	Subordinated Notes 14.832% effective yield ⁽⁵⁾ ⁽⁸⁾ ^{(9) (10)}	7/20/2027		18,357,647		9,683,843		9,336,699		1.7	%
					18,357,647		9,683,843		9,336,699
Arrow International Inc.	Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan LIBOR + 7.250%, 1.250% Floor ⁽⁴⁾	12/21/2025		10,000,000		10,000,000		10,046,000		1.8	%
					10,000,000		10,000,000		10,046,000
Aviation Technical Services, Inc.	Aerospace & Defense	Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(4) (5)}	3/31/2022		25,828,344		25,828,344		23,898,967		4.3	%
					25,828,344		25,828,344		23,898,967

F-5

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Brook & Whittle Holding Corp.	Containers, Packaging & Glass	Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.250%, 1.000% Floor ^{(4) (5)}	10/17/2024		699,633		697,401		699,633		0.1	%
		Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.250%, 1.000% Floor ^{(4) (5)}	10/17/2024		2,974,786		2,965,295		2,974,786		0.5	%
		Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor ^{(4) (5)}	10/17/2024		2,086,380		2,086,380		2,086,380		0.4	%
					5,760,799		5,749,076		5,760,799
Cardenas Markets, LLC	Retail	Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor	6/3/2027		2,000,000		1,980,000		1,971,000		0.4	%
					2,000,000		1,980,000		1,971,000
CM Finance SPV LLC	Banking, Finance, Insurance & Real Estate	Subordinated Notes 3.000% ⁽⁵⁾ ^{(6) (12)}	6/24/2021		35,600		35,600		—		—	%
					35,600		35,600		—
CPI International, Inc.	Aerospace & Defense	Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor ^{(5) (7)}	7/28/2025		8,575,302		8,560,621		8,022,195		1.4	%
					8,575,302		8,560,621		8,022,195
CT Technologies Intermediate Holdings, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ^{(5) (7)}	12/16/2025		3,990,000		3,972,165		3,997,581		0.7	%
					3,990,000		3,972,165		3,997,581
DataOnline Corp.	High Tech Industries	Revolving Credit Facility LIBOR + 6.250%, 1.000% Floor⁽⁴⁾ ^{(5) (11)}	11/13/2025		1,821,429		1,821,429		1,791,214		0.3	%
		Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor ^{(4) (5)}	11/13/2025		14,775,000		14,775,000		14,566,672		2.6	%
					16,596,429		16,596,429		16,357,886
Dryden 43 Senior Loan Fund, Series 2016-43A	Multi-Sector Holdings	Subordinated Notes 10.240% effective yield ^{(5) (8)} ^{(9) (10)}	7/20/2029		3,620,000		2,452,768		2,318,248		0.4	%
					3,620,000		2,452,768		2,318,248
Dryden 49 Senior Loan Fund, Series 2017-49A	Multi-Sector Holdings	Subordinated Notes 10.225% effective yield ^{(5) (8)} ^{(9) (10)}	7/18/2030		17,233,288		11,807,420		11,053,431		2.0	%
					17,233,288		11,807,420		11,053,431
Envision Healthcare Corporation	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 3.750% ^{(5) (7)}	10/10/2025		48,750		34,365		41,764		—	%
					48,750		34,365		41,764
Friedrich Holdings, Inc.	Construction & Building	Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor ^{(5) (7)}	2/7/2023		9,634,784		9,634,784		9,583,720		1.7	%
					9,634,784		9,634,784		9,583,720

F-6

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Glass Mountain Pipeline Holdings, LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan LIBOR + 4.500%, 1.000% Floor ⁽⁵⁾ ^{(6) (7)}	12/23/2024		48,375		24,273		13,787		—	%
					48,375		24,273		13,787
Golden West Packaging Group LLC	Forest Products & Paper	Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor ^{(5) (7)}	6/20/2023		1,323,073		1,323,073		1,302,698		0.2	%
					1,323,073		1,323,073		1,302,698
Holland Acquisition Corp.	Energy: Oil & Gas	Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor ⁽⁴⁾ ^{(6) (12)}	5/29/2020		3,754,497		3,634,434		—		—	%
					3,754,497		3,634,434		—
Hylan Datacom & Electrical LLC	Construction & Building	Senior Secured First Lien Term Loan LIBOR + 10.000%, 1.000% Floor ^{(4) (5)}	7/25/2022		15,545,534		15,545,534		12,436,427		2.2	%
					15,545,534		15,545,534		12,436,427
Impact Group, LLC	Services: Business	Senior Secured First Lien Term Loan LIBOR + 7.370%, 1.000% Floor ^{(4) (5)}	6/27/2023		5,641,623		5,641,623		5,641,623		1.0	%
					5,641,623		5,641,623		5,641,623
Innovative XCessories & Services, LLC	Automotive	Senior Secured First Lien Term Loan LIBOR + 5.200%, 1.000% Floor ^{(5) (14)}	3/5/2027		2,961,554		2,937,375		2,967,181		0.5	%
					2,961,554		2,937,375		2,967,181
Interflex Acquisition Company, LLC	Containers, Packaging & Glass	Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(5) (7)}	8/18/2022		11,189,828		11,182,573		11,189,828		2.0	%
					11,189,828		11,182,573		11,189,828
Iqor US Inc.	Services: Business	Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor ^{(5) (7)}	11/19/2024		2,723,720		2,676,988		2,785,003		0.5	%
		Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor ⁽⁷⁾	11/19/2025		7,373,495		7,373,495		7,267,316		1.3	%
		Equity - 158,959 Shares ⁽¹³⁾			—		1,907,509		2,130,051		0.4	%
					10,097,215		11,957,992		12,182,370
Isagenix International, LLC	Wholesale	Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor ^{(4) (5)}	6/16/2025		1,710,840		1,682,536		1,389,202		0.3	%
					1,710,840		1,682,536		1,389,202
Isola USA Corp.	High Tech Industries	Senior Secured Second Lien Term Loan LIBOR + 9.500%, 1.000% Floor, PIK ⁽⁴⁾ ^{(6) (11)}	1/2/2023		11,882,396		6,958,657		8,911,797		1.6	%
		Common Units - 10,283,782 units ⁽¹³⁾			—		—		—		—	%
					11,882,396		6,958,657		8,911,797
Ivanti Software, Inc.	High Tech Industries	Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(5) (7)}	12/1/2028		6,000,000		6,000,000		5,970,000		1.1	%
					6,000,000		6,000,000		5,970,000
JFL-WCS Partners, LLC	Environmental Industries	Common Units - 70,412 units ^{(5) (13)}			—		88,159		5,069,664		0.9	%
					—		88,159		5,069,664
JFL-NGS Partners, LLC	Environmental Industries	Preferred units - 6,375,000 units 12.500%			—		6,556,485		9,243,750		1.7	%
		Common Units - 3,252.95 units ⁽¹³⁾			—		1,125,000		2,992,714		0.5	%
					—		7,681,485		12,236,464

F-7

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
K&N Parent, Inc.	Automotive	Senior Secured First Lien Term Loan LIBOR + 4.750%, 1.000% Floor ⁽⁷⁾	10/20/2023		7,985,597		7,666,174		7,682,145		1.4	%
		Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor ⁽⁷⁾	10/21/2024		2,000,000		1,733,573		1,678,800		0.3	%
					9,985,597		9,399,747		9,360,945
Keystone Acquisition Corp.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor ^{(4) (5)}	5/1/2024		1,774,910		1,734,493		1,743,849		0.3	%
		Senior Secured Second Lien Term Loan LIBOR + 9.250%, 1.000% Floor ^{(4) (5)}	5/1/2025		7,000,000		6,930,548		6,865,600		1.2	%
					8,774,910		8,665,041		8,609,449
KNB Holdings Corporation	Consumer Goods: Durable	Senior Secured First Lien Term Loan LIBOR + 5.500%, 1.000% Floor ⁽⁷⁾	4/26/2024		1,959,459		1,475,893		1,763,514		0.3	%
					1,959,459		1,475,893		1,763,514
Lifestyle Intermediate II, LLC	Consumer Goods: Durable	Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor ^{(5) (11)}	1/26/2026		3,901,177		3,901,177		3,901,177		0.7	%
					3,901,177		3,901,177		3,901,177
LogMeIn, Inc.	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 4.750%, 1.000% Floor ^{(5) (7)}	8/31/2027		1,990,000		1,965,323		1,986,816		0.4	%
					1,990,000		1,965,323		1,986,816
Magnetite XIX, Limited	Multi-Sector Holdings	Subordinated Notes LIBOR + 8.770% ^{(4) (8)} ^{(9) (10)}	4/17/2034		5,250,000		5,092,500		5,250,000		0.9	%
		Subordinated Notes 10.563% effective yield ^{(5) (8)} ^{(9) (10)}	7/17/2030		13,730,209		8,691,428		8,702,206		1.6	%
					18,980,209		13,783,928		13,952,206
Novetta Solutions, LLC	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ^{(4) (5)}	10/17/2022		1,552,564		1,523,928		1,546,819		0.3	%
		Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(4) (5)}	10/16/2023		9,058,824		9,024,952		8,912,071		1.6	%
					10,611,388		10,548,880		10,458,890
Offen Inc.	Transportation: Cargo	Senior Secured First Lien Term Loan LIBOR + 5.000% ^{(5) (7)}	6/21/2026		3,936,353		3,908,162		3,911,948		0.7	%
					3,936,353		3,908,162		3,911,948
Path Medical, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 13.000%, 1.000% Floor, PIK ^{(4) (5)} ^{(6) (7)}	10/11/2021		11,531,613		8,860,931		—		—	%
		Senior Secured First Lien Term Loan LIBOR + 9.500%, 1.000% Floor, PIK ^{(4) (5)} ^{(6) (7)}	10/11/2021		8,371,833		8,153,509		7,116,058		1.3	%
		Warrants - 36,716 warrants ^{(5) (13)}	1/9/2027		—		669,709		—		—	%
					19,903,446		17,684,149		7,116,058
PetroChoice Holdings, Inc.	Chemicals, Plastics & Rubber	Senior Secured Second Lien Term Loan LIBOR + 8.750%, 1.000% Floor ^{(4) (5)}	8/21/2023		9,000,000		9,000,000		8,241,300		1.5	%
					9,000,000		9,000,000		8,241,300
Polymer Solutions Group Holdings, LLC	Chemicals, Plastics & Rubber	Senior Secured First Lien Term Loan LIBOR + 7.000%, 1.000% Floor ^{(5) (7)}	1/1/2023		1,047,621		1,047,621		1,034,002		0.2	%
					1,047,621		1,047,621		1,034,002
Proppants Holdings, LLC	Energy: Oil & Gas	Common Units - 1,506,254 units ⁽¹³⁾			—		890,481		18,828
		Common Units - 161,852 units ⁽¹³⁾			—		8,832		—		—	%
					—		899,313		18,828
PT Network, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 5.500%, 1.000% Floor, 2.00% PIK ^{(5) (14)}	11/30/2023		8,115,129		7,829,553		8,028,297		1.4	%
		Membership Units - 1.441 units ^{(5) (13)}			—		—		—		—	%
					8,115,129		7,829,553		8,028,297
RA Outdoors, LLC	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 6.750%, 1.000% Floor ⁽⁵⁾ ^{(7) (11)}	4/8/2026		18,765,432		18,765,432		18,577,778		3.4	%
					18,765,432		18,765,432		18,577,778

F-8

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
RateGain Technologies, Inc.	Hotel, Gaming & Leisure	Subordinated Notes ⁽⁵⁾ ^{(13) (12)}	7/31/2020		386,854		363,936		—		—	%
		Subordinated Notes ^{(5) (13)}	7/31/2021		476,190		476,191		—		—	%
					863,044		840,127		—
Redwood Services Group, LLC	Services: Business	Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(4) (5)}	6/6/2023		3,980,000		3,980,000		3,980,000		0.7	%
		Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor ^{(5) (7)}	6/6/2023		22,493,469		22,493,469		22,077,340		4.0	%
		Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(5) (7)}	6/6/2023		730,356		716,443		730,356		0.1	%
					27,203,825		27,189,912		26,787,696
Resolute Investment Managers, Inc.	Banking, Finance, Insurance & Real Estate	Senior Secured Second Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(4) (5)}	4/30/2025		6,000,000		5,974,106		6,060,000		1.1	%
					6,000,000		5,974,106		6,060,000
Rhombus Cinema Holdings, LP	Media: Diversified & Production	Preferred Equity - 7,449 shares 10.000% PIK ⁽⁵⁾ ^{(6) (13)}			—		4,584,207		—		—	%
		Common Units - 3,163 units ^{(5) (13)}			—		2,864,831		—		—	%
		Common Units - 3,163 units ^{(5) (13)}			—		297,962		—		—	%
					—		7,747,000		—
RTIC Subsidiary Holdings, LLC	Consumer Goods: Durable	Senior Secured First Lien Term Loan LIBOR + 7.750%, 1.250% Floor ^{(4) (5)}	9/1/2025		9,875,000		9,875,000		9,950,050		1.8	%
		Revolving Credit Facility LIBOR + 7.750%, 1.250% Floor ^{(4) (5)} ^{(7) (11)}	9/1/2025		793,651		793,651		785,714		0.1	%
		Preferred Class A units - 145.347 units ⁽¹³⁾			—		145,347		145,347		—	%
		Preferred Class B units - 145.347 units ⁽¹³⁾			—		145,347		145,347		—	%
		Common units - 153 units ⁽¹³⁾			—		15,300		28,610		—	%
					10,668,651		10,974,645		11,055,068
SavATree, LLC	Environmental Industries	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ^{(4) (5)}	6/2/2022		4,261,924		4,261,924		4,261,924		0.8	%
					4,261,924		4,261,924		4,261,924
SFP Holding, Inc.	Construction & Building	Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor ⁽⁴⁾ ^{(5) (11)}	9/1/2022		23,540,101		23,523,664		23,540,101		4.3	%
		Equity - 0.94% of outstanding equity ^{(5) (13)}			—		788,116		866,928		0.2	%
					23,540,101		24,311,780		24,407,029
Simplified Logistics, LLC	Services: Business	Senior Secured First Lien Term Loan LIBOR + 6.500%, 1.000% Floor ⁽⁴⁾ ^{(5) (11)}	2/28/2022		18,202,104		18,202,104		18,076,510		3.3	%
					18,202,104		18,202,104		18,076,510
SMART Financial Operations, LLC	Retail	Preferred Equity - 1,000,000 units ^{(5) (13)}			—		1,000,000		490,000		0.1	%
					—		1,000,000		490,000

F-9

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Smile Doctors, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor ^{(4) (5)}	10/6/2022		13,735,950		13,721,574		13,554,635		2.4	%
					13,735,950		13,721,574		13,554,635
Software Luxembourg Intermediate S.À R.L.	Services: Business	Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor ^{(4) (5)}	4/27/2025		4,000,000		4,010,539		4,000,000		0.7	%
					4,000,000		4,010,539		4,000,000
Sound Point CLO XX, Ltd.	Multi-Sector Holdings	Subordinated Notes 9.080% effective yield ^{(5) (8)} ^{(9) (10)}	7/26/2031		4,489,000		3,279,007		2,627,412		0.5	%
					4,489,000		3,279,007		2,627,412
Team Car Care, LLC	Automotive	Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(4) (5)}	2/23/2023		13,211,493		13,211,493		13,173,179		2.4	%
					13,211,493		13,211,493		13,173,179
Team Services Group	Services: Consumer	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ^{(5) (7)}	12/20/2027		4,987,500		4,846,593		4,962,562		0.9	%
		Senior Secured Second Lien Term Loan LIBOR + 9.000%, 1.000% Floor ^{(5) (7)}	12/18/2028		5,000,000		4,857,634		4,975,000		0.9	%
					9,987,500		9,704,227		9,937,562
The Octave Music Group, Inc.	Media: Diversified & Production	Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor, 0.75% PIK ^{(5) (7)}	5/29/2025		7,724,138		7,665,995		7,531,034		1.4	%
					7,724,138		7,665,995		7,531,034
Thermacell Repellents, Inc.	Consumer Goods: Durable	Revolving Credit Facility LIBOR + 6.250%, 1.000% Floor ^{(5) (11)}	12/4/2026		1,045,000		1,024,522		1,023,000		0.2	%
		Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor ^{(5) (7)}	12/4/2026		2,787,150		2,761,207		2,759,279		0.5	%
					3,832,150		3,785,729		3,782,279
Time Manufacturing Acquisition, LLC	Capital Equipment	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ⁽⁵⁾	2/3/2023		2,459,435		2,459,249		2,454,024		0.4	%
					2,459,435		2,459,249		2,454,024
True Religion Apparel, Inc.	Retail	Common units - 2.713 units ⁽¹³⁾			—		—		—		—	%
		Preferred Equity - 2.818 units ⁽¹³⁾			—		12,094		—		—	%
					—		12,094		—
Velocity Pooling Vehicle, LLC	Automotive	Senior Secured First Lien Term Loan LIBOR + 11.000%, 1.000% Floor ^{(4) (5)}	4/28/2023		871,784		844,936		871,784		0.2	%
		Common Units - 4,676 units ^{(5) (13)}			—		259,938		23,380		—	%
		Warrants - 5,591 warrants ^{(5) (13)}	3/30/2028		—		310,802		27,955		—	%
					871,784		1,415,676		923,119
Vision Solutions, Inc.	High Tech Industries	Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor, 0.75%	4/23/2029		5,000,000		4,950,000		4,962,500		0.9	%
					5,000,000		4,950,000		4,962,500
VOYA CLO 2015-2, LTD.	Multi-Sector Holdings	Subordinated Notes 2.759% effective yield ^{(5) (8)} ^{(9) (10)}	7/19/2028		10,735,659		5,091,271		3,785,393		0.7	%
					10,735,659		5,091,271		3,785,393
VOYA CLO 2016-2, LTD.	Multi-Sector Holdings	Subordinated Notes 4.334% effective yield ^{(5) (8)} ^{(9) (10)}	7/19/2028		11,088,290		6,653,707		5,007,472		0.9	%
					11,088,290		6,653,707		5,007,472
Walker Edison Furniture Company LLC	Consumer Goods: Durable	Common Units - 2,000 units ^{(5) (13)}			—		—		12,197,487		2.2	%
					—		—		12,197,487
Watermill-QMC Midco, Inc.	Automotive	Equity - 1.62% partnership interest ^{(5) (13)}			—		902,277		—		—	%
					—		902,277		—
Wawona Delaware Holdings, LLC	Beverage & Food	Senior Secured First Lien Term Loan LIBOR + 4.750% ^{(4) (5)}	9/11/2026		45,050		42,957		42,122		—	%
					45,050		42,957		42,122
West Dermatology, LLC	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor ⁽⁴⁾ ^{(5) (11)}	2/11/2025		723,038		731,502		743,290		0.1	%
		Revolving Credit Facility LIBOR + 6.000%, 1.000% Floor, 0.75% PIK ^{(4) (5)}	2/11/2025		1,662,538		1,662,538		1,619,478		0.3	%
		Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor, 0.750% PIK ⁽⁴⁾ ^{(5) (11)}	2/11/2025		4,730,249		4,727,780		4,609,628		0.8	%
					7,115,825		7,121,820		6,972,396
Wok Holdings Inc.	Retail	Senior Secured First Lien Term Loan LIBOR + 6.250% ^{(5) (7)}	3/1/2026		48,875		34,174		48,171		—	%
					48,875		34,174		48,171

Total non-controlled/non-affiliated investments						$	512,940,700	$	497,021,783		89.7	%

F-10

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Controlled/affiliated investments –	24.3%
1888 Industrial Services, LLC	Energy: Oil & Gas	Revolving Credit Facility LIBOR + 5.000%, 1.000% Floor ⁽⁴⁾ ^{(5) (11)}	9/30/2021		1,243,924		1,243,924		1,243,924		0.2	%
		Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ⁽⁵⁾ ^{(6) (7)}	9/30/2021		431,176		431,176		431,176		0.1	%
		Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor, PIK ⁽⁴⁾ ^{(5) (6)}	9/30/2021		3,642,176		3,315,574		—		—	%
		Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor, PIK ⁽⁴⁾ ^{(5) (6)}	9/30/2021		9,711,916		6,816,029		—		—	%
		Units - 6,122.765 units ⁽⁵⁾ ^{(9) (13)}			—		—		—		—	%
					15,029,192		11,806,703		1,675,100
Black Angus Steakhouses, LLC	Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor, PIK ⁽⁴⁾ ^{(5) (6)}	6/30/2022		22,681,178		20,457,589		9,072,471		1.6	%
		Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor ^{(4) (5)}	6/30/2022		1,897,321		1,897,321		1,897,321		0.3	%
		Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor ⁽⁵⁾ ^{(7) (11)}	6/30/2022		3,750,000		3,750,000		3,750,000		0.7	%
		Equity - 44.60% of outstanding equity ⁽⁵⁾ ^{(9) (13)}			—		—		—		—	%
					28,328,499		26,104,910		14,719,792
Caddo Investors Holdings 1 LLC	Forest Products & Paper	Equity - 12.250% LLC Interest ^{(5) (16)}			—		5,072,149		6,797,899		1.2	%
					—		5,072,149		6,797,899
Charming Charlie LLC	Retail	Senior Secured First Lien Delayed Draw Term Loan 20.000% ^{(6) (12)}	5/28/2022		769,967		769,968		396,225		0.1	%
		Senior Secured First Lien Term Loan LIBOR + 10.000%, 1.000% Floor ^{(4) (6)}	4/24/2023		7,590,773		5,859,128		—		—	%
		Senior Secured First Lien Term Loan 20.000% ^{(6) (12)}	5/15/2022		138,517		138,517		71,281		—	%
		Common Stock - 34,923,249 shares ^{(9) (13)}			—		—		—		—	%
					8,499,257		6,767,613		467,506
Dynamic Energy Services International LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan 13.500% PIK ⁽⁴⁾ ^{(5) (6)}	12/31/2021		7,546,368		4,449,025		—		—	%
		Common Units - 6,500,000 shares ^{(5) (13)}			—		—		—		—	%
					7,546,368		4,449,025		—
Kemmerer Operations, LLC	Metals & Mining	Senior Secured First Lien Term Loan 15.000% PIK ⁽⁵⁾	6/21/2023		2,294,047		2,294,047		2,294,047		0.4	%
		Senior Secured First Lien Delayed Draw Term Loan 15.000% PIK ^{(5) (11)}	6/21/2023		288,614		288,614		288,614		0.1	%
		Common Units - 6.7797 units ^{(5) (13)}			—		962,718		962,760		0.2	%
					2,582,661		3,545,379		3,545,421
MCM 500 East Pratt Holdings, LLC	Banking, Finance, Insurance & Real Estate	Equity - 5,000,000 units ^{(9) (13)}			—		5,000,000		6,425,000		1.2	%
					—		5,000,000		6,425,000
MCM Capital Office Park Holdings LLC	Banking, Finance, Insurance & Real Estate	Equity - 7,500,000 units ^{(9) (13)}			—		7,500,000		14,918,505		2.7	%
					—		7,500,000		14,918,505
Sierra Senior Loan Strategy JV I LLC	Multi-Sector Holdings	Equity - 89.01% ownership of SIC Senior Loan Strategy JV I LLC ⁽⁵⁾ ^{(9) (16)}			—		110,050,000		85,775,721		15.5	%
					—		110,050,000		85,775,721


Total controlled/affiliated investments⁽¹⁵⁾						$	180,295,779	$	134,324,944		24.3	%

Total investments						$	693,236,479	$	631,346,727		114.0	%

Money Market Fund - 32.5%
Federated Institutional Prime Obligations Fund		Money Market 0.010% ⁽¹⁷⁾		$	6,419,651	$	6,419,651	$	6,419,651		1.2	%
State Street Institutional Liquid Reserves Fund		Money Market 0.050% ⁽¹⁷⁾			14,095,548		14,099,419		14,096,958		2.5	%
Total money market fund				$	20,515,199	$	20,519,070	$	20,516,609		3.7	%

F-11

(1)

All of the Company's investments are domiciled in the United States except for AMMC CLO 22, Limited Series 2018-22A, AMMC CLO 23, Ltd. Series 2020-23A, Apidos CLO XXIV, Series 2016-24A, Dryden 43 Senior Loan Fund, Series 2016-43A, Dryden 49 Senior Loan Fund, 2017-49A, Magnetite XIX, Limited, Sound Point CLO XX, Ltd., VOYA CLO 2016-2, LTD., and VOYA CLO 2015-2, LTD., which are all domiciled in the Cayman Islands. All foreign investments were denominated in US Dollars.

(2)	Unless otherwise indicated, all securities are valued using significant unobservable inputs, which are categorized as Level 3 assets under the definition of ASC 820 fair value hierarchy.

(3)	Percentage is based on net assets of $553,830,487 as of June 30, 2021.

(4)	The interest rate on these loans is subject to a base rate plus 3 Month "3M" LIBOR, which at June 30, 2021 was 0.15%. The interest rate is subject to a minimum LIBOR floor.

(5)	An affiliated fund that is managed by an affiliate of SIC Advisors LLC also holds an investment in this security.

(6)	The investment was on non-accrual status as of June 30, 2021.

(7)	The interest rate on these loans is subject to a base rate plus 1 Month "1M" LIBOR, which at June 30, 2021 was 0.10%. The interest rate is subject to a minimum LIBOR floor.

(8)	Securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities represent a fair value of $54,568,511 or 9.9% of net assets as of June 30, 2021 and are considered restricted securities.

(9)	The investment is not a qualifying asset under Section 55 of the Investment Company Act of 1940 (the "1940 Act"). Non-qualifying assets represent 25.6% of the Company's portfolio at fair value.

(10)

This investment is in the equity class of a collateralized loan obligation ("CLO"). The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield is based on the current projections of this excess cash flow taking into account assumptions that have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions.

(11)	The investment has an unfunded commitment as of June 30, 2021. For further details see Note 10. Fair value includes an analysis of the unfunded commitment.
(12)	The investment is past due as of June 30, 2021

(13)	Security is non-income producing.
(14)	The interest rate on these loans is subject to a base rate plus 6 month "6M" LIBOR, which at June 30, 2021, 2021 was 0.16%. The interest rate is subject to a minimum LIBOR floor.

(15)

Affiliate Investments are defined by the 1940 Act as investments in companies in which the Company owns at least 5% but no more than 25% of the voting securities or we are under common control with such portfolio company. Control Investments are defined by the 1940 Act as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.

(16)	As a practical expedient, the Company uses NAV to determine the fair value of this investment.
(17)	Represents securities in Level 1 of the valuation hierarchical levels. Money Market investments are deemed to be cash equivalents and are not included in the ASC 820 table (see Note 4).

See accompanying notes to consolidated financial statements.

F-12

Table of Contents

Sierra Income Corporation

Consolidated Schedule of Investments

As of December 31, 2020

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Non-controlled/non-affiliated investments –	89.9%

AAAHI Acquisition Corporation	Transportation: Consumer	Senior Secured First Lien Term Loan LIBOR + 8.250%, 1.000% Floor ⁽⁴⁾ ^{(5) (13)}	12/10/2023	$	7,110,546	$	6,975,416	$	4,977,382		0.9	%
					7,110,546		6,975,416		4,977,382
Alpine SG, LLC	High Tech Industries	Senior Secured First Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(5) (6)}	11/16/2022		1,262,051		1,230,864		1,298,524		0.2	%
		Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.750%, 1.000% Floor ^{(5) (6)}	11/16/2022		6,165,725		6,165,633		6,102,218		1.2	%
		Senior Secured First Lien Term Loan LIBOR + 5.750%, 1.000% Floor ^{(5) (6)}	11/16/2022		12,529,258		12,517,772		12,400,207		2.4	%
		Senior Secured First Lien Revolving Credit Facility LIBOR + 5.750%, 1.000% Floor ^{(5) (6)}	11/16/2022		1,000,000		1,000,000		989,700		0.2	%
					20,957,034		20,914,269		20,790,649
American Dental Partners, Inc.	Healthcare & Pharmaceuticals	Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(4) (5)}	9/25/2023		4,893,750		4,893,750		4,704,362		0.9	%
					4,893,750		4,893,750		4,704,362
Amerijet Holdings, Inc.	Transportation: Cargo	Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(5) (6)}	7/15/2021		2,952,518		2,952,518		2,952,518		0.6	%
					2,952,518		2,952,518		2,952,518
AMMC CLO 22, Limited Series 2018-22A	Multi-Sector Holdings	Subordinated Notes 13.429% effective yield ⁽⁷⁾ ^{(8) (9)}	4/25/2031		7,222,000		5,402,828		4,786,019		0.9	%
					7,222,000		5,402,828		4,786,019
AMMC CLO 23, Ltd. Series 2020-23A	Multi-Sector Holdings	Subordinated Notes 19.100% effective yield ⁽⁷⁾ ^{(8) (9)}	10/17/2031		2,000,000		1,688,071		1,688,000		0.3	%
					2,000,000		1,688,071		1,688,000
Answers Finance, LLC	High Tech Industries	Common Stock - 388,533 shares ⁽¹⁰⁾			—		5,076,376		493,437		0.1	%
					—		5,076,376		493,437
Apidos CLO XXIV, Series 2016-24A	Multi-Sector Holdings	Subordinated Notes 8.894% effective yield ^{(5) (7)} ^{(8) (9)}	7/20/2027		18,357,647		10,342,024		8,402,295		1.6	%
					18,357,647		10,342,024		8,402,295
Arrow International Inc.	Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan LIBOR + 7.250%, 1.250% Floor ⁽⁶⁾	12/21/2025		10,000,000		10,000,000		10,000,000		1.9	%
					10,000,000		10,000,000		10,000,000
Avantor, Inc.	Wholesale	Common Stock - 27,252 shares ^{(5) (8)} ^{(10) (11)}			—		467,171		767,144		0.1	%
					—		467,171		767,144
Aviation Technical Services, Inc.	Aerospace & Defense	Senior Secured Second Lien Term Loan LIBOR + 8.500%, 1.000% Floor ^{(4) (5)}	3/31/2022		25,000,000		25,000,000		21,795,000		4.1	%
					25,000,000		25,000,000		21,795,000

F-13

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
BRG Sports, Inc.	Consumer Goods: Durable	Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor ^{(5) (6)}	6/15/2023		3,480,384		3,474,606		3,445,232		0.7	%
					3,480,384		3,474,606		3,445,232
Brook & Whittle Holding Corp.	Containers, Packaging & Glass	Senior Secured First Lien Delayed Draw Term Loan LIBOR + 5.250%, 1.000% Floor ^{(4) (5)}	10/17/2024		699,967		697,464		682,888		0.1	%
		Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor ^{(4) (5)}	10/17/2024		2,976,219		2,965,575		2,903,599		0.6	%
					3,676,186		3,663,039		3,586,487
Callaway Golf Co.	Consumer Goods: Durable	Senior Secured First Lien Term Loan LIBOR + 4.500%, 1.000% Floor ^{(5) (6)}	1/4/2026		46,000		45,422		46,060		—	%
					46,000		45,422		46,060
CM Finance SPV LLC	Banking, Finance, Insurance & Real Estate	Subordinated Notes 3.000% ⁽⁵⁾	6/24/2021		35,600		35,600		35,600		—	%
					35,600		35,600		35,600
CPI International, Inc.	Aerospace & Defense	Senior Secured Second Lien Term Loan LIBOR + 7.250%, 1.000% Floor ^{(5) (6)}	7/28/2025		8,575,302		8,558,896		7,928,725		1.5	%
					8,575,302		8,558,896		7,928,725
CT Technologies Intermediate Holdings, Inc.	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 5.000%, 1.000% Floor ^{(5) (6)}	12/16/2025		7,000,000		6,965,245		6,965,000		1.3	%
					7,000,000		6,965,245		6,965,000
DataOnline Corp.	High Tech Industries	Revolving Credit Facility LIBOR + 6.250%, 1.000% Floor ⁽⁴⁾ ^{(5) (12)}	11/13/2025		1,821,429		1,821,429		1,765,929		0.3	%
		Senior Secured First Lien Term Loan LIBOR + 6.250%, 1.000% Floor ^{(4) (5)}	11/13/2025		14,850,000		14,850,000		14,465,385		2.8	%
					16,671,429		16,671,429		16,231,314
Delta Air Lines, Inc.	Transportation: Consumer	Senior Secured First Lien Notes 4.750% ⁽⁵⁾ ^{(7) (8)}	10/20/2028		1,000,000		1,000,000		1,090,700		0.2	%
					1,000,000		1,000,000		1,090,700
Dryden 38 Senior Loan Fund, Series 2015-38A	Multi-Sector Holdings	Subordinated Notes 11.373% effective yield ⁽⁷⁾ ^{(8) (9)}	7/15/2027		7,000,000		4,308,139		3,598,000		0.7	%
					7,000,000		4,308,139		3,598,000
Dryden 43 Senior Loan Fund, Series 2016-43A	Multi-Sector Holdings	Subordinated Notes 8.262% effective yield ^{(5) (7)} ^{(8) (9)}	7/20/2029		3,620,000		2,513,635		1,901,586		0.4	%
					3,620,000		2,513,635		1,901,586
Dryden 49 Senior Loan Fund, Series 2017-49A	Multi-Sector Holdings	Subordinated Notes 9.989% effective yield ^{(5) (7)} ^{(8) (9)}	7/18/2030		17,233,288		12,375,842		9,498,988		1.8	%
					17,233,288		12,375,842		9,498,988
Envision Healthcare Corporation	Healthcare & Pharmaceuticals	Senior Secured First Lien Term Loan LIBOR + 3.750% ^{(5) (6)}	10/10/2025		49,000		33,226		40,734		—	%
					49,000		33,226		40,734
First Boston Construction Holdings, LLC	Banking, Finance, Insurance & Real Estate	Senior Secured First Lien Notes 12.000% ⁽⁵⁾	2/23/2023		7,473,750		7,473,750		7,458,055		1.4	%
		Preferred Equity - 2,304,406 units ^{(5) (10)}			—		1,868,437		1,307,906		0.2	%
					7,473,750		9,342,187		8,765,961
Friedrich Holdings, Inc.	Construction & Building	Senior Secured First Lien Term Loan LIBOR + 6.000%, 1.000% Floor ^{(5) (6)}	2/7/2023		10,421,300		10,421,300		10,263,938		2.0	%
					10,421,300		10,421,300		10,263,938
GK Holdings, Inc.	Services: Business	Senior Secured Second Lien Term Loan LIBOR + 10.250%, 1.000% Floor ^{(4) (13)}	1/20/2022		10,000,000		10,000,000		5,500,000		1.0	%
					10,000,000		10,000,000		5,500,000

F-14

Table of Contents

Company⁽¹⁾⁽²⁾	Industry	Type of Investment	Maturity	Par Amount		Cost		Fair Value		% of Net Assets(3)
Glass Mountain Pipeline Holdings, LLC	Energy: Oil & Gas	Senior Secured First Lien Term Loan LIBOR + 4.500%, 1.000% Floor ⁽⁵⁾ ^{(6) (13)}	12/23/2024		48,625		23,389		24,434		—	%
					48,625		23,389		24,434
Golden West Packaging Group LLC	Forest Products & Paper	Senior Secured First Lien Term Loan LIBOR + 5.250%, 1.000% Floor ^{(5) (6)}	6/20/2023		1,405,738		1,405,738		1,404,332		0.3	%
					1,405,738		1,405,738		1,404,332
Holland Acquisition Corp.	Energy: Oil & Gas	Senior Secured First Lien Term Loan LIBOR + 9.000%, 1.000% Floor ⁽⁴⁾ ^{(13) (14)}	5/29/2020		3,857,305		3,733,979		108,310		—	%
					3,857,305		3,733,979		108,310
Hylan Datacom & Electrical LLC	Construction & Building	Senior Secured First Lien Term Loan LIBOR + 10.000%, 1.000% Floor ^{(4) (5)}	7/25/2022		15,255,390		15,255,390		10,983,881		2.1	%
					15,255,390		15,255,390		10,983,881
Impact Group, LLC	Services: Business	Senior Secured First Lien Term Loan LIBOR + 7.370%, 1.000% Floor ^{(4) (5)}	6/27/2023		5,734,462		5,734,462		5,548,092		1.1	%
					5,734,462		5,734,462		5,548,092
Innovative XCessories & Services, LLC	Automotive	Senior Secured First Lien Term Loan LIBOR + 5.200%, 1.000% Floor ^{(4) (5)}	3/5/2027		2,976,933		2,950,524		2,979,016		0.6	%
					2,976,933		2,950,524		2,979,016
Interflex Acquisition Company, LLC	Containers, Packaging & Glass	Senior Secured First Lien Term Loan LIBOR + 8.000%, 1.000% Floor ^{(5) (6)}	8/18/2022		11,553,578		11,543,801		11,533,937		2.2	%
					11,553,578		11,543,801		11,533,937
Iqor US Inc.	Services: Business	Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor ^{(5) (6)}	11/19/2024		3,471,136		3,388,625		3,401,713		0.6	%
		Senior Secured First Lien Term Loan LIBOR + 7.500%, 1.000% Floor ^{(5) (6)}

Sierra Income Corp 10-Q