UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q



x	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarter Ended ~~September~~March 3031, ~~2017~~2018



¨	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: 814-01025

AMERICAN CAPITAL SENIOR FLOATING, LTD.

(Exact name of registrant as specified in its charter)

Maryland		46-1996220
(State or other jurisdiction of incorporation or organization)		(I.R.S. EmployerIdentification No.)
	245 Park Avenue, 42nd Floor,New York, NY 10167
	245 Park Avenue, 42nd Floor, New York, NY 10167
	(Address of principal executive offices) (Zip Code)
	(212) 750-7300
	(Registrant’s telephone number, including area code)

N/A

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

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 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 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, 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	¨	(Do not check if a smaller reporting company)	Smaller reporting company	¨
Emerging growth company	x

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class		Outstanding at ~~November~~May 68, ~~2017~~2018
Common stock, $0.01 par value		10,000,100

AMERICAN CAPITAL SENIOR FLOATING, LTD.

FORM 10-Q FOR THE QUARTER ENDED ~~September~~March 3031, ~~2017~~2018

TABLE OF CONTENTS

		PAGE
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Assets and Liabilities as of September 30, 2017 (unaudited) and December 31, 2016	3
	Consolidated Statements of Assets and Liabilities as of March 31, 2018 (unaudited) and December 31, 2017	3
	Consolidated Statements of Operations for the three and nine months ended September 30, 2017 (unaudited)	4
	Consolidated Statements of Operations for the three months ended March 31, 2018 (unaudited) and March 31, 2017 (unaudited)	4
	Consolidated Statements of Changes in Net Assets for the nine months ended September 30, 2017 (unaudited)	5
	Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2018 (unaudited) and March 31, 2017 (unaudited)	5
	Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 (unaudited) and September 30, 2016 (unaudited)	6
	Consolidated Statements of Cash Flows for the three months ended March 31, 2018, (unaudited) and March 31, 2017 (unaudited)	6
	Consolidated Schedule of Investments as of September 30, 2017 (unaudited) and December 31, 2016	7
	Consolidated Schedule of Investments as of March 31, 2018 (unaudited) and December 31, 2017	7
	Notes to Consolidated Financial Statements (unaudited)	2019
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	4140
Item 4.	Controls and Procedures	4243
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	44
Item 1A.	Risk Factors	44
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
Item 3.	Defaults Upon Senior Securities	44
Item 4.	Mine Safety Disclosures	44
Item 5.	Other Information	44
Item 6.	Exhibits	4544
Signatures		46

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except per share data)

	September 30, 2017			December 31, 2016
	March 31, 2018			December 31, 2017
	(unaudited)
Assets:
Investments, fair value (cost of $239,810 and $257,965, respectively)	$	227,796		$	244,872
Investments, fair value (cost of $234,034 and $241,228, respectively)	$	224,642		$	229,240
Cash and cash equivalents	23,~~902~~558			81,~~795~~756
Receivable for investments sold	52,~~224~~266			2,~~272~~324
Deferred financing costs	~~112~~66			~~181~~89
Interest receivable	~~485~~450			~~779~~669
Prepaid expenses and other assets	~~643~~845			~~143~~579
Receivable from affiliate (Notes 3 and 4)	58			298
Total assets	$	231,827		$	234,657
Total assets	$	237,220		$	257,340
Liabilities:
Secured revolving credit facility payable (Note 7)	$	96,800		$	104,900
Secured revolving credit facility payable (see Note 7)	$	93,800		$	87,500
Payable for investments purchased	75,~~396~~143			1214,~~202~~413
Management fee payable (Note 3)	497			2,046
Distributions to stockholders payable (see Note 9)	970			970
Interest payable (Note 7)	28			34
Management fee payable (see Note 3)	469			494
Taxes payable (Note 8)	33			117
Interest payable (see Note 7)	40			36
Payable to affiliate (Note 4)	31			156
Taxes payable	—			70
Other liabilities and accrued expenses	240			126
Payable to affiliate (see Note 4)	9			14
Distributions to stockholders payable (Note 10)	970			970
Other liabilities and accrued expenses	325			304
Total liabilities	~~105~~100,~~995~~756			~~120~~103,~~551~~801
Commitments and contingencies (Note 11)
Commitments and contingencies (see Note 10)
Net Assets:
Common stock, par value $0.01 per share; 10,000 issued and outstanding; 300,000 authorized	100			100
Paid-in capital in excess of par	150,~~949~~879			150,~~949~~879
Accumulated undistributed net investment income	1,548			2,133
Accumulated overdistributed net investment income	(831		)	(136		)
Accumulated net realized loss from investments	(9,~~358~~685		)	(37,~~300~~999		)
Net unrealized loss on investments	(129,~~014~~392		)	(1311,~~093~~988		)
Total net assets	131,~~225~~071			~~136~~130,~~789~~856
Total liabilities and net assets	$	~~237~~231,~~220~~827		$	~~257~~234,~~340~~657
Net asset value per share outstanding	$	13.1211		$	13.6809

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	Three Months Ended March 31,
	2017			2016			2017			2016
	2018			2017
Investment Income:
Interest	$	4,~~400~~078		$	4,~~589~~612		$	~~13,131~~		$	~~13,206~~
Total investment income	4,~~400~~078			4,~~589~~612			~~13,131~~			~~13,206~~
Expenses:
Interest and commitment fee (Note 7)	868			642			2,324			1,900
Interest and commitment fee (see Note 7)	876			710
Management fee (Note 3)	497			512			1,561			1,520
Management fee (see Note 3)	469			531
Professional fees	~~231~~223			95343			~~834~~			~~329~~
Insurance	~~113~~104			~~111~~148			~~352~~			~~331~~
Amortization of deferred financing costs	23			23			69			69
Other general and administrative expenses (Note 4)	73			358			486			1,154
Other general and administrative expenses	168			222
Total expenses	1,~~805~~863			1,~~741~~977			~~5,626~~			~~5,303~~
Expense reimbursement (Note 3)	(59		)	(283		)	(673		)	(976		)
Expense reimbursement (see Note 3)	—			(437		)
Net expenses	1,~~746~~863			1,~~458~~540			~~4,953~~			~~4,327~~
Net investment income before taxes	2,~~654~~215			3,~~131~~072			~~8,178~~			~~8,879~~
Income tax (provision) benefit (Note 8)	(5		)	(23		)	(33		)	75
Income tax provision, including excise tax	—			(19		)
Net investment income	2,~~649~~215			3,~~108~~053			~~8,145~~			~~8,954~~
Net realized and unrealized gain (loss) on investments:
Net gain (loss) on investments:
Net realized loss on investments	(2,785		)	(154		)	(6,058		)	(1,453		)
Net realized gain (loss) on investments	(1,686		)	462
Net unrealized gain on investments	157			7,395			1,079			15,284
Net unrealized gain (loss) on investments	2,596			(763		)
Net gain (loss) on investments	~~(2,628~~910		)	~~7,241~~(301		)	~~(4,979~~		)	~~13,831~~
Net increase in net assets resulting from operations (“Net Earnings”)	$	213,125		$	102,~~349~~752		$	~~3,166~~		$	~~22,785~~
Net investment income per share	$	0.2622		$	0.31		$	~~0.81~~		$	~~0.90~~
Net Earnings per share (Note 5)	$	—		$	1.03		$	0.32		$	2.28
Net Earnings per share (see Note 5)	$	0.31		$	0.28
Distributions to stockholders declared per share	$	0.29		$	0.29		$	~~0.87~~		$	~~0.87~~
Weighted average shares outstanding	10,000			10,000			~~10,000~~			~~10,000~~

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited, in thousands)

	Nine Months Ended September 30,
	Three Months Ended March 31,
	2017			2016
	2018			2017
Operations:
Net investment income	$	82,~~145~~215		$	83,~~954~~053
Net realized loss on investments	(6,058		)	(1,453		)
Net realized gain (loss) on investments	(1,686		)	462
Net unrealized gain on investments	1,079			15,284
Net unrealized gain (loss) on investments	2,596			(763		)
Net Earnings	3,166			22,785
Net earnings	3,125			2,752
Distributions to stockholders:
From net investment income	(82,~~730~~910		)	(82,~~730~~910		)
Net increase (decrease) in net assets	~~(5,564~~215		)	~~14,055~~(158		)
Net assets, beginning of period	~~136~~130,~~789~~856			~~117~~136,~~929~~789
Net assets, end of period	$	131,~~225~~071		$	~~131~~136,~~984~~631
Undistributed net investment income included in net assets	$	~~1,548~~(831	)	$	12,~~784~~276
Common shares outstanding	10,000			10,000

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

	Nine Months Ended September 30,
	Three Months Ended March 31,
	2017			2016
	2018			2017
Cash Flows from Operating Activities:
Net Earnings	$	3,166		$	22,785
Net increase in stockholders' equity resulting from operations	$	3,125		$	2,752
Adjustments to reconcile net increase in net assets resulting from operations:
Net realized loss on investments	6,058			1,453
Net realized (gain) loss on investments	1,686			(462		)
Net unrealized gain on investments	(1,079		)	(15,284		)
Net unrealized (gain) loss on investments	(2,596		)	763
Accretion of CLO interest income	(41,~~772~~361		)	(51,~~215~~835		)
Net amortization of discount on loans	(191		)	(205		)
Net amortization of premium/discount on loans	(42		)	(81		)
Amortization of deferred financing costs	6923			6923
Purchase of investments, net	(117,466		)	(57,743		)
Purchase of investments	(24,692		)	(63,879		)
Proceeds from disposition of investments, net	126,768			74,771
Proceeds from disposition of investments	31,603			63,035
Changes in operating assets and liabilities:
Interest receivable	294			38
Payable for investments purchased	(9,270		)	6,149
Prepaid expenses and other assets	(500		)	(154		)
Receivable for investments sold	58			(4,427		)
Receivable from affiliate	240			(49		)
Interest receivable	219			258
Management fee payable	(1,549		)	984
Prepaid expenses and other assets	(266		)	(725		)
Interest payable	(6		)	(26		)
Receivable from affiliate	—			(139		)
Taxes payable	(84		)	(191		)
Management fee payable	(25		)	531
Payable to affiliate	(125		)	(50		)
Interest payable	4			(3		)
Other liabilities and accrued expenses	114			(3		)
Taxes payable	(70		)	(98		)
Net cash provided by operating activities	10,937			21,180
Payable to affiliate	(5		)	(129		)
Other liabilities and accrued expenses	21			207
Net cash provided by (used in) operating activities	(1,588		)	1,940
Cash Flows from Financing Activities:
Distributions to stockholders paid	(8,730		)	(8,730		)
Distributions to stockholders	(2,910		)	(3,880		)
Payments on revolving credit facility, net	(8,100		)	(10,200		)
Borrowings (payments) from (on) revolving credit facility	6,300			(1,500		)
Net cash used in financing activities	(16,830		)	(18,930		)
Net cash provided by (used in) financing activities	3,390			(5,380		)
Net change in cash and cash equivalents	(5,893		)	2,250
Net increase (decrease) in cash and cash equivalents	1,802			(3,440		)
Cash and cash equivalents at beginning of period	81,~~795~~756			28,~~474~~795
Cash and cash equivalents at end of period	$	23,~~902~~558		$	45,~~724~~355
Supplemental disclosure of cash flow information:
Cash paid for interest and commitment fees	$	~~2,330~~872		$	~~1,927~~713
Cash paid for income taxes	$	~~130~~100		$	~~240~~130
Cash received for income tax benefit	$	(~~126~~30	)	$	—(126	)
Distributions to stockholders declared and payable during the period	$	82,~~730~~910		$	82,~~730~~910

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED SCHEDULE OF INVESTMENTS

~~SEPTEMBER~~MARCH 3031, ~~2017~~2018

(unaudited, in thousands)

Description (5), (12)	Maturity	InterestRate (1)		Basis PointSpreadAboveIndex (2)	~~Basis PointSpreadAboveIndex (2)~~	LIBOR Interest Rate Floor	~~LIBOR Interest Rate Floor~~	Industry	~~Industry~~ParAmount		~~ParAmount~~		Cost		~~Cost~~		FairValue		~~FairValue~~
Non-Control/Non-Affiliate Investments
First Lien Floating Rate Loans —133.6% of Net Assets
First Lien Floating Rate Loans —129.4% of Net Assets
24 Hour Fitness Worldwide, Inc.	05/30/2021	5.05	%		L+ 3.75		1.00	%	Leisure Goods/Activities/Movies		$	1,937			$	1,933			$	1,934
1A Smart Start LLC	02/21/2022	6.38%		L+ 4.50		1.00%		Electronics/Electric	$	752			$	750			$	753
Academy, Ltd.	07/01/2022	5.24	%		L+ 4.00		1.00	%	Retailers (except food and drug)		898				805				613
24 Hour Fitness Worldwide, Inc. (6)	05/28/2021	6.05%		L+ 3.75		1.00%		Leisure Goods/Activities/Movies	1,927				1,924				1,946
Acosta, Inc.	09/26/2021	4.49	%		L+ 3.25		1.00	%	Business Equipment and Services		2,425				2,400				2,155
Academy, Ltd.	07/01/2022	6.02%		L+ 4.00		1.00%		Retailers (except Food and Drug)	893				810				715
Advanced Integration Technology LP (6)	04/03/2023	5.99	%		L+ 4.75		1.00	%	Industrial Equipment		1,990				1,990				1,985
Access CIG, LLC	02/27/2025	5.63%		L+ 3.75		—%		Service & Equipment	2,068				2,058				2,094
Aegis Toxicology Sciences Corporation	02/24/2021	5.83	%		L+ 4.50		1.00	%	Health Care		1,612				1,607				1,610
Access CIG, LLC (9)	02/27/2025	5.65%		L+ 3.75		—%		Service & Equipment	432				—				6
Air Medical Group Holdings, Inc.	04/28/2022	5.24	%		L+ 4.00		1.00	%	Health Care		497				495				497
Acosta, Inc.	09/26/2021	5.13%		L+ 3.25		1.00%		Business Equipment and Services	2,419				2,397				2,035
Air Medical Group Holdings, Inc.	04/28/2022	4.49	%		L+ 3.25		1.00	%	Health Care		1,955				1,958				1,944
Acrisure, LLC	11/22/2023	5.99%		L+ 4.25		1.00%		Banking, Finance & Insurance	329				329				334
Albertson's LLC	12/21/2022	4.33	%		L+ 3.00		0.75	%	Food/Drug Retailers		983				963				949
Advanced Integration Technology LP (6)	04/03/2023	6.73%		L+ 4.75		1.00%		Industrial Equipment	1,980				1,980				1,995
American Residential Services, LLC	06/30/2022	5.24	%		L+ 4.00		1.00	%	Ecological Services and Equipment		1,985				1,980				1,992
Aegis Toxicology Sciences Corporation	02/24/2021	6.79%		L+ 4.50		1.00%		Health Care	1,604				1,599				1,598
American Tire Distributors, Inc.	09/01/2021	5.49	%		L+ 4.25		1.00	%	Retailers (except food and drug)		959				956				969
Air Medical Group Holdings Inc	04/28/2022	4.94%		L+ 3.25		1.00%		Health Care	2,440				2,440				2,453
AqGen Ascensus, Inc.	12/05/2022	5.33	%		L+ 4.00		1.00	%	Financial Intermediaries		1,723				1,677				1,740
Albertson's LLC	12/21/2022	5.29%		L+ 3.00		0.75%		Food/Drug Retailers	978				960				969
Aquilex LLC (6)	12/31/2020	5.24	%		L+ 4.00		1.00	%	Business Equipment and Services		905				904				901
American Residential Services, LLC	06/30/2022	5.88%		L+ 4.00		1.00%		Ecological Services and Equipment	1,975				1,971				1,987
Arctic Glacier U.S.A., Inc. (6)	03/20/2024	5.49	%		L+ 4.25		1.00	%	Food Products		995				990				1,002
American Tire Distributors, Inc.	09/01/2021	6.24%		L+ 4.25		1.00%		Retailers (except Food and Drug)	954				951				967
Ardent Legacy Acquisitions, Inc.	08/04/2021	6.83	%		L+ 5.50		1.00	%	Health Care		323				321				325
AqGen Ascensus, Inc.	12/05/2022	5.80%		L+ 3.50		1.00%		Financial Intermediaries	1,715				1,673				1,733
AssuredPartners, Inc.	10/22/2024	4.59	%		L+ 3.35		—	%	Insurance		1,331				1,331				1,334
Arctic Glacier U.S.A., Inc.	03/20/2024	5.38%		L+ 3.50		1.00%		Food Products	1,050				1,045				1,061
BCP Raptor, LLC (6)	06/24/2024	5.52	%		L+ 4.25		1.00	%	Energy		1,097				1,072				1,108
Ardent Legacy Acquisitions, Inc.	08/04/2021	7.38%		L+ 5.50		1.00%		Health Care	318				317				320
BCPE Eagle Buyer LLC	03/18/2024	5.49	%		L+ 4.25		1.00	%	Health Care		1,293				1,281				1,287
Argon Medical Devices, Inc. (6)	01/23/2025	6.05%		L+ 3.75		1.00%		Health Care	1,500				1,493				1,510
Big Jack Holdings LP (6)	04/05/2024	5.49	%		L+ 4.25		1.00	%	Food/Drug Retailers		1,944				1,935				1,956
AVSC Holding Corp.	03/01/2025	5.26%		L+ 3.25		1.00%		Service & Equipment	1,811				1,807				1,819
BJ's Wholesale Club, Inc.	02/03/2024	4.98	%		L+ 3.75		1.00	%	Food/Drug Retailers		1,899				1,896				1,825
BCP Raptor, LLC	06/24/2024	6.04%		L+ 4.25		1.00%		Energy	1,092				1,069				1,099
Blackboard, Inc.	06/30/2021	6.30	%		L+ 5.00		1.00	%	Electronics/Electric		2,393				2,393				2,308
BCPE Eagle Buyer LLC	03/18/2024	6.02%		L+ 4.25		1.00%		Health Care	1,287				1,276				1,272
Brand Energy & Infrastructure Services, Inc.	06/21/2024	5.51	%		L+ 4.25		1.00	%	Oil and Gas		2,489				2,465				2,505
Big Jack Holdings LP (6)	04/05/2024	5.88%		L+ 4.00		1.00%		Food/Drug Retailers	1,858				1,850				1,876
Calceus Acquisition, Inc.	01/31/2020	5.24	%		L+ 4.00		1.00	%	Clothing/Textiles		2,292				2,296				2,130
BJ's Wholesale Club, Inc.	02/03/2024	5.19%		L+ 3.50		1.00%		Food/Drug Retailers	1,889				1,886				1,890
Candy Intermediate Holdings, Inc.	06/15/2023	5.74	%		L+ 4.50		1.00	%	Food Products		1,777				1,776				1,745
Blackboard, Inc.	06/30/2021	6.73%		L+ 5.00		1.00%		Electronics/Electric	2,381				2,381				2,228
Carecore National, LLC (6)	03/05/2021	5.24	%		L+ 4.00		1.00	%	Health Care		1,946				1,945				1,970
Brand Energy & Infrastructure Services, Inc.	06/21/2024	5.99%		L+ 4.25		1.00%		Oil and Gas	2,476				2,454				2,501
Catalina Marketing Corporation	04/09/2021	4.74	%		L+ 3.50		1.00	%	Business Equipment and Services		2,387				2,387				2,016
Calceus Acquisition, Inc.	01/31/2020	5.88%		L+ 4.00		1.00%		Clothing/Textiles	2,280				2,283				2,249
CB Poly Investments, LLC	08/16/2023	5.99	%		L+ 4.75		1.00	%	Clothing/Textiles		1,739				1,726				1,747
Carestream Health, Inc.	06/07/2019	5.88%		L+ 4.00		1.00%		Health Care	771				772				776
Charter NEX US, Inc.	05/16/2024	4.49	%		L+ 3.25		—	%	Manufacturing		598				596				601
CB Poly Investments, LLC	08/16/2023	5.63%		L+ 3.75		1.00%		Clothing/Textiles	1,726				1,714				1,737
CIBT Global, Inc.	06/01/2024	5.33	%		L+ 4.00		1.00	%	Service & Equipment		997				995				1,002
Central Security Group, Inc.	10/06/2021	7.50%		L+ 5.63		1.00%		Electronics/Electric	1,990				2,003				1,995
Comfort Holding, LLC	02/05/2024	5.98	%		L+ 4.75		1.00	%	Home Furnishings		2,258				2,246				2,040
CIBT Global, Inc.	06/03/2024	6.05%		L+ 3.75		1.00%		Service & Equipment	993				990				999
CPI Holdco, LLC (6)	03/21/2024	5.34	%		L+ 4.00		1.00	%	Industrial Equipment		1,990				1,981				2,010
CT Technologies Intermediate Holdings, Inc.	12/01/2021	6.13%		L+ 4.25		1.00%		Electronics/Electric	486				485				485
CT Technologies Intermediate Holdings, Inc.	12/01/2021	5.49	%		L+ 4.25		1.00	%	Electronics/Electric		489				487				490
Curvature, Inc.	10/30/2023	6.88%		L+ 5.00		1.00%		Business Equipment and Services	1,975				1,967				1,830
DiversiTech Holdings, Inc.	06/03/2024	4.84	%		L+ 3.50		1.00	%	Industrials		1,995				1,990				2,003
DJO Finance LLC	06/08/2020	4.94%		L+ 3.25		1.00%		Health Care	990				975				996
DJO Finance LLC	06/08/2020	4.49	%		L+ 3.25		1.00	%	Health Care		995				977				996
DTI Holdco, Inc. (7)	09/29/2023	6.71%		L+ 4.75		1.00%		Electronics/Electric	1,239				1,238				1,243
DTI Holdco, Inc.	09/30/2023	6.56	%		L+ 5.25		1.00	%	Electronics/Electric		744				743				716
Dynacast International LLC	01/28/2022	5.55%		L+ 3.25		1.00%		Industrial Equipment	530				530				534
Duff & Phelps Corporation	04/23/2020	5.08	%		L+ 3.75		1.00	%	Financial Intermediaries		2,375				2,376				2,383
Eastern Power, LLC	10/02/2023	5.63%		L+ 3.75		1.00%		Utilities	1,873				1,865				1,904
Dynacast International LLC	01/28/2022	4.58	%		L+ 3.25		1.00	%	Industrial Equipment		533				533				536
ECi Software Solutions, Inc.	09/27/2024	6.55%		L+ 4.25		1.00%		Technology	1,493				1,479				1,508
The Edelman Financial Center, LLC (6)	11/11/2024	5.97%		L+ 4.25		1.00%		Banking, Finance & Insurance	1,535				1,531				1,559
EIG Investors Corp. (3)	02/09/2023	5.96%		L+ 4.00		1.00%		Electronics/Electric	2,208				2,203				2,227

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

~~SEPTEMBER~~MARCH 3031, ~~2017~~2018

(unaudited, in thousands)

Description (5), (12)	Maturity	InterestRate (1)		Basis PointSpreadAboveIndex (2)	~~Basis PointSpreadAboveIndex (2)~~	LIBOR Interest Rate Floor	~~LIBOR Interest Rate Floor~~	Industry	~~Industry~~ParAmount	~~ParAmount~~		Cost	~~Cost~~		FairValue	~~FairValue~~
First Lien Floating Rate Loans (continued) —133.6% of Net Assets
First Lien Floating Rate Loans (continued) —129.4% of Net Assets
Eastern Power, LLC	10/02/2023	4.99	%		L+ 3.75		1.00	%	Utilities	$	1,896		$	1,888		$	1,909
Epicor Software Corporation	06/01/2022	5.13%		L+ 3.25		1.00%		Electronics/Electric	1,944			1,932			1,955
ECi Software Solutions, Inc. (7)	09/19/2024	5.25	%		L+ 4.25		1.00	%	Technology	1,500			1,485			1,507
ExamWorks Group, Inc. (7)	07/27/2023	5.13%		L+ 3.25		1.00%		Business Equipment and Services	1,235			1,238			1,246
EIG Investors Corp. (3)	02/09/2023	5.32	%		L+ 4.00		1.00	%	Electronics/Electric	2,334			2,328			2,363
Fairmount Santrol Inc.	11/01/2022	8.30%		L+ 6.00		1.00%		Nonferrous Metals/Minerals	1,800			1,775			1,824
Epicor Software Corporation	06/01/2022	4.99	%		L+ 3.75		1.00	%	Electronics/Electric	1,954			1,941			1,960
FHC Health Systems, Inc. (6)	12/23/2021	5.88%		L+ 4.00		1.00%		Health Care	1,473			1,458			1,470
ExamWorks Group, Inc.	07/27/2023	4.49	%		L+ 3.25		1.00	%	Business Equipment and Services	990			993			997
Go Wireless Inc.	12/22/2024	8.38%		L+ 6.50		1.00%		Telecommunications	1,450			1,436			1,448
Fairmount Minerals, Ltd. (3)	09/05/2019	4.74	%		L+ 3.50		1.00	%	Nonferrous Metals/Minerals	394			395			392
Greeneden U.S. Holdings I, LLC	12/01/2023	5.80%		L+ 3.50		—%		Business Equipment and Services	495			489			498
FHC Health Systems, Inc.	12/23/2021	5.24	%		L+ 4.00		1.00	%	Health Care	1,481			1,463			1,448
HGIM Corp. (10)	06/18/2020	8.25%		L+ 3.50		1.00%		Surface Transport	1,444			1,449			609
Flexera Software LLC	04/02/2020	4.83	%		L+ 3.50		1.00	%	Electronics/Electric	993			993			999
Hummel Station LLC	10/27/2022	7.88%		L+ 6.00		1.00%		Energy	2,000			1,889			1,948
Gates Global LLC	04/01/2024	4.58	%		L+ 3.25		1.00	%	Automotive	1,050			1,049			1,056
Hyland Software, Inc. (7)	07/01/2022	5.13%		L+ 3.25		0.75%		Electronics/Electric	2,434			2,420			2,457
Genesys Telecommunications Laboratories, Inc (7)	12/01/2023	5.01	%		L+ 3.75		—	%	Business Equipment and Services	497			491			502
IBC Capital Limited (3)	09/09/2021	5.82%		L+ 3.75		1.00%		Business Equipment and Services	985			978			988
Harland Clarke Holdings Corp.	12/31/2021	7.33	%		L+ 6.00		1.00	%	Publishing	669			670			674
Immucor, Inc.	06/15/2021	7.30%		L+ 5.00		1.00%		Conglomerates	2,481			2,461			2,546
Harland Clarke Holdings Corp. (7)	02/09/2022	6.83	%		L+ 5.50		1.00	%	Publishing	233			232			235
Indra Holdings Corp.	05/01/2021	6.02%		L+ 4.25		1.00%		Clothing/Textiles	1,185			1,180			710
Helix Generation, LLC	06/03/2024	5.08	%		L+ 3.75		1.00	%	Utilities	422			420			427
Infoblox Inc.	11/07/2023	6.38%		L+ 4.50		—%		Electronics/Electric	1,874			1,850			1,905
HGIM Corp. (10)	06/18/2020	7.75	%		L+ 3.50		1.00	%	Surface Transport	1,444			1,449			493
Information Resources, Inc.	01/18/2024	6.19%		L+ 4.25		1.00%		Business Equipment and Services	2,407			2,397			2,428
Hummel Station LLC (6)	10/27/2022	7.24	%		L+ 6.00		1.00	%	Energy	2,000			1,877			1,850
Innovative XCessories & Services LLC (6)	11/29/2022	6.58%		L+ 4.75		1.00%		Automotive	1,990			1,980			2,010
Hyland Software, Inc.	07/01/2022	4.49	%		L+ 3.25		0.75	%	Electronics/Electric	2,446			2,431			2,473
IPC Corp.	08/06/2021	6.28%		L+ 4.50		1.00%		Telecommunications	777			775			764
Hyperion Insurance Group Limited (3)	04/29/2022	5.25	%		L+ 4.00		1.00	%	Diversified Insurance	704			705			714
Ivanti Software, Inc.	01/20/2024	6.13%		L+ 4.25		1.00%		Electronics/Electric	2,577			2,561			2,539
IBC Capital Limited (3)	09/09/2021	5.07	%		L+ 3.75		1.00	%	Business Equipment and Services	990			982			984
Jazz Acquisition, Inc.	06/19/2021	5.80%		L+ 3.50		1.00%		Aerospace and Defense	1,927			1,930			1,886
Immucor, Inc.	06/15/2021	6.24	%		L+ 5.00		1.00	%	Conglomerates	2,494			2,470			2,534
JC Penney Co Inc (3)	06/23/2023	6.23%		L+ 4.25		1.00%		Retailers (except Food and Drug)	726			729			713
Indra Holdings Corp.	05/03/2021	5.56	%		L+ 4.25		1.00	%	Clothing/Textiles	1,185			1,179			713
KEMET Corporation (3) (6)	04/26/2024	7.88%		L+ 6.00		1.00%		Electronics	2,677			2,645			2,731
Infoblox Inc.	11/07/2023	6.24	%		L+ 5.00		1.00	%	Electronics/Electric	1,425			1,400			1,437
Kestra Financial, Inc. (6)	06/24/2022	6.80%		L+ 4.50		1.00%		Banking, Finance & Insurance	998			988			995
Informatica Corporation	08/05/2022	4.83	%		L+ 3.50		1.00	%	Electronics/Electric	1,933			1,929			1,937
Kingpin Intermediate Holdings LLC (6) (7)	07/03/2024	6.13%		L+ 4.25		1.00%		Service & Equipment	1,001			997			1,014
Information Resources, Inc.	01/18/2024	5.49	%		L+ 4.25		1.00	%	Business Equipment and Services	2,419			2,408			2,446
K-Mac Holdings Corp.	03/14/2025	5.04%		L+ 3.25		—%		Food Service	1,000			998			1,006
IPC Corp.	08/06/2021	5.82	%		L+ 4.50		1.00	%	Telecommunications	1,462			1,458			1,399
Kronos Acquisition Intermediate Inc.	05/15/2023	5.88%		L+ 4.00		1.00%		Cosmetics/Toiletries	711			699			719
Jazz Acquisition, Inc.	06/21/2021	4.83	%		L+ 3.50		1.00	%	Aerospace and Defense	1,937			1,940			1,892
Learning Care Group (US) No. 2 Inc. (6)	03/13/2025	5.03%		L+ 3.25		1.00%		Business Equipment and Services	1,250			1,247			1,263
JC Penney Co Inc (3)	06/23/2023	5.57	%		L+ 4.25		1.00	%	Retailers (except food and drug)	736			739			717
Legalzoom.com, Inc. (6)	11/21/2024	6.34%		L+ 4.50		1.00%		Technology	1,926			1,908			1,943
Jo-Ann Stores, Inc.	10/20/2023	6.39	%		L+ 5.00		1.00	%	Retailers (except food and drug)	565			556			542
Liberty Cablevision of Puerto Rico LLC	01/07/2022	5.22%		L+ 3.50		1.00%		Cable and Satellite Television	1,000			995			973
KEMET Corporation (3), (6)	04/26/2024	7.24	%		L+ 6.00		1.00	%	Electronics	2,413			2,373			2,428
LSF9 Atlantis Holdings LLC	05/01/2023	7.69%		L+ 6.00		1.00%		Telecommunications/Cellular Communications	2,082			2,080			2,077
Kingpin Intermediate Holdings LLC	07/03/2024	5.57	%		L+ 4.25		1.00	%	Service & Equipment	873			869			878
MB Aerospace Holdings II Corp.	01/22/2025	5.38%		L+ 3.50		1.00%		Aerospace and Defense	1,995			1,985			2,016
Kronos Acquisition Intermediate Inc. (3)	08/26/2022	5.74	%		L+ 4.50		—	%	Cosmetics/Toiletries	711			698			719
McGraw-Hill Global Education Holdings, LLC	05/04/2022	5.88%		L+ 4.00		1.00%		Publishing	1,972			1,962			1,953
Kronos Incorporated	11/01/2023	4.81	%		L+ 3.50		1.00	%	Electronics/Electric	2,283			2,275			2,298
Mirion Technologies, Inc.	03/31/2022	7.05%		L+ 4.75		1.00%		Utilities	1,980			1,982			1,978
LANDesk Software Group, Inc.	01/20/2024	5.49	%		L+ 4.25		1.00	%	Electronics/Electric	2,589			2,572			2,529
MND Holdings III Corp (6)	06/19/2024	6.05%		L+ 3.75		1.00%		Consumer Products	1,787			1,778			1,807
Learning Care Group (US) No. 2 Inc. (6)	05/05/2021	5.28	%		L+ 4.00		1.00	%	Business Equipment and Services	987			987			998
Mohegan Tribal Gaming Authority	10/13/2023	5.88%		L+ 4.00		1.00%		Lodging and Casinos	1,447			1,465			1,446
Liberty Cablevision of Puerto Rico LLC (6)	01/07/2022	4.80	%		L+ 3.50		1.00	%	Cable and Satellite Television	1,000			994			930
Murray Energy Corporation	04/16/2020	9.55%		L+ 7.25		1.00%		Nonferrous Metals/Minerals	984			955			835
LSF9 Atlantis Holdings LLC	05/01/2023	7.24	%		L+ 6.00		1.00	%	Telecommunications/Cellular Communications	1,108			1,099			1,115
Navicure, Inc.	11/01/2024	5.63%		L+ 3.75		1.00%		Health Care	1,995			1,986			2,007
Marine Acquisition Corp.	01/30/2021	4.99	%		L+ 3.75		1.00	%	Manufacturing	986			986			993

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

~~SEPTEMBER~~MARCH 3031, ~~2017~~2018

(unaudited, in thousands)

Description (5), (12)	Maturity	InterestRate (1)		Basis PointSpreadAboveIndex (2)	~~Basis PointSpreadAboveIndex (2)~~	LIBOR Interest Rate Floor	~~LIBOR Interest Rate Floor~~	Industry	~~Industry~~ParAmount	~~ParAmount~~		Cost	~~Cost~~		FairValue	~~FairValue~~
First Lien Floating Rate Loans (continued) —133.6% of Net Assets
First Lien Floating Rate Loans (continued) —129.4% of Net Assets
McGraw-Hill Global Education Holdings, LLC	05/04/2022	5.24	%		L+ 4.00		1.00	%	Publishing	$	1,982		$	1,970		$	1,951
Navitas Midstream Midland Basin, LLC	12/13/2024	6.29%		L+ 4.50		1.00%		Oil and Gas	1,995			1,985			1,999
Meter Readings Holdings, LLC (6)	08/29/2023	7.07	%		L+ 5.75		1.00	%	Electronics/Electric	660			652			673
NFP Corp	01/08/2024	4.88%		L+ 3.00		1.00%		Diversified Insurance	2,469			2,459			2,480
Mirion Technologies, Inc.	03/31/2022	6.08	%		L+ 4.75		1.00	%	Utilities	1,990			1,992			1,990
nThrive, Inc.	10/20/2022	6.38%		L+ 4.50		1.00%		Health Care	1,975			1,975			1,983
Mister Car Wash Holdings, Inc.	08/20/2021	5.03	%		L+ 3.75		1.00	%	Business Equipment and Services	743			738			747
Oak Parent, Inc. (6)	10/26/2023	6.38%		L+ 4.50		1.00%		Clothing/Textiles	1,331			1,323			1,271
Mitchell International, Inc.	10/13/2020	4.81	%		L+ 3.50		1.00	%	Electronics/Electric	2,359			2,365			2,377
Optiv Inc.	02/01/2024	5.13%		L+ 3.25		1.00%		Business Equipment and Services	1,031			1,029			998
MND Holdings III Corp (6)	06/19/2024	5.83	%		L+ 4.50		1.00	%	Consumer Products	1,795			1,787			1,819
PAE Holding Corporation	10/20/2022	7.49%		L+ 5.50		1.00%		Aerospace and Defense	536			528			540
Mohegan Tribal Gaming Authority	10/13/2023	5.24	%		L+ 4.00		1.00	%	Lodging and Casinos	1,492			1,513			1,510
Patterson Medical Supply, Inc.	08/29/2022	6.54%		L+ 4.75		1.00%		Health Care	1,993			1,971			1,938
Murray Energy Corporation	04/16/2020	8.58	%		L+ 7.25		1.00	%	Nonferrous Metals/Minerals	989			953			910
PetSmart, Inc.	03/11/2022	4.68%		L+ 3.00		1.00%		Retailers (except Food and Drug)	481			480			385
NFP Corp	01/08/2024	4.74	%		L+ 3.50		1.00	%	Diversified Insurance	2,481			2,470			2,502
Pike Corporation (7)	03/23/2025	4.50%		L+ 3.50		1.00%		Utilities	1,500			1,496			1,516
nThrive, Inc. (6)	10/20/2022	5.74	%		L+ 4.50		1.00	%	Health Care	1,985			1,985			1,994
Plaskolite, LLC (6)	11/03/2022	6.30%		L+ 4.00		1.00%		Chemical/Plastics	1,397			1,393			1,401
Oak Parent, Inc. (6)	10/26/2023	5.74	%		L+ 4.50		1.00	%	Clothing/Textiles	1,338			1,329			1,318
Plaze, Inc.	07/31/2022	5.80%		L+ 3.50		1.00%		Chemical/Plastics	815			815			824
Omnitracs, LLC	11/25/2020	5.09	%		L+ 3.75		1.00	%	Electronics/Electric	985			972			995
Pregis Holding I Corporation	05/20/2021	5.80%		L+ 3.50		1.00%		Chemical/Plastics	1,341			1,328			1,346
Onex Carestream Finance LP	06/07/2019	5.33	%		L+ 4.00		1.00	%	Electronics/Electric	889			891			892
Project Alpha Intermediate Holding, Inc.	04/26/2024	5.04%		L+ 3.50		1.00%		Technology	1,751			1,744			1,731
Opal Acquisition, Inc.	11/27/2020	5.33	%		L+ 4.00		1.00	%	Health Care	2,883			2,872			2,724
Renaissance Learning, Inc.	04/09/2021	6.05%		L+ 3.75		1.00%		Electronics/Electric	1,906			1,906			1,918
Optiv Inc.	02/01/2024	4.56	%		L+ 3.25		1.00	%	Business Equipment and Services	1,037			1,034			977
SciQuest, Inc. (6)	12/28/2024	5.88%		L+ 4.00		1.00%		Technology	2,500			2,488			2,513
PAE Holding Corporation	10/20/2022	6.74	%		L+ 5.50		1.00	%	Aerospace and Defense	550			541			554
Serta Simmons Bedding, LLC	11/08/2023	5.19%		L+ 3.50		1.00%		Home Furnishings	1,980			1,972			1,797
Patterson Medical Supply, Inc.	08/28/2022	6.25	%		L+ 4.75		1.00	%	Health Care	2,000			1,975			1,944
St. George's University Scholastic Services LLC	07/06/2022	5.63%		L+ 3.75		1.00%		Education	2,466			2,466			2,492
PetSmart, Inc.	03/11/2022	4.24	%		L+ 3.00		1.00	%	Retailers (except food and drug)	484			482			411
StandardAero Aviation Holdings, Inc.	07/07/2022	5.63%		L+ 3.75		1.00%		Aerospace and Defense	1,151			1,146			1,163
Plaskolite, LLC	11/03/2022	5.33	%		L+ 4.00		1.00	%	Chemical/Plastics	1,397			1,392			1,399
Sterigenics-Nordion Topco LLC	05/15/2022	4.88%		L+ 3.00		1.00%		Health Care	884			879			885
Plaze, Inc.	07/31/2022	4.83	%		L+ 3.50		1.00	%	Chemical/Plastics	820			819			827
Strategic Partners Acquisition Corp. (6)	06/30/2023	5.63%		L+ 3.75		1.00%		Clothing/Textiles	1,910			1,910			1,929
PODS, LLC	02/02/2022	4.49	%		L+ 3.25		1.00	%	Surface Transport	985			976			993
Summit Midstream Partners Holdings, LLC (3) (6)	05/13/2022	7.88%		L+ 6.00		1.00%		Oil and Gas	539			534			546
Pregis Holding I Corporation	05/20/2021	4.83	%		L+ 3.50		1.00	%	Chemical/Plastics	1,347			1,332			1,350
Syniverse Holdings Inc	03/09/2023	6.72%		L+ 5.00		1.00%		Telecommunications	1,000			990			1,013
Presidio, Inc.	02/02/2022	4.55	%		L+ 3.25		1.00	%	Electronics/Electric	1,095			1,095			1,105
Thermasys Corp.	05/03/2019	5.70%		L+ 4.00		1.25%		Industrial Equipment	426			426			415
Press Ganey Holdings, Inc.	10/21/2023	4.49	%		L+ 3.25		1.00	%	Health Care	397			395			400
TIBCO Software Inc	12/04/2020	5.38%		L+ 3.50		1.00%		Business Equipment and Services	1,482			1,492			1,490
PrimeLine Utility Services LLC	11/14/2022	6.81	%		L+ 5.50		1.00	%	Utilities	1,098			1,091			1,098
TravelCLICK, Inc. (6)	05/06/2021	5.88%		L+ 4.00		1.00%		Food Service	536			525			539
ProAmpac PG Borrower LLC	11/20/2023	5.24	%		L+ 4.00		1.00	%	Containers and Glass Products	448			444			453
Traverse Midstream Partners LLC	09/27/2024	5.85%		L+ 4.00		1.00%		Oil and Gas	1,495			1,488			1,506
Project Alpha Intermediate Holding, Inc.	04/26/2024	4.81	%		L+ 3.50		1.00	%	Technology	1,760			1,752			1,723
Tricorbraun Holdings, Inc.	11/30/2023	5.97%		L+ 3.75		1.00%		Containers and Glass Products	90			91			91
Quorum Health Corporation (3)	04/29/2022	8.07	%		L+ 6.75		1.00	%	Health Care	978			971			993
Tricorbraun Holdings, Inc.	11/30/2023	6.05%		L+ 3.75		—%		Containers and Glass Products	898			913			904
Renaissance Learning, Inc.	04/09/2021	5.08	%		L+ 3.75		1.00	%	Electronics/Electric	1,913			1,913			1,929
Truck Hero, Inc.	04/22/2024	6.22%		L+ 4.00		1.00%		Automotive	2,627			2,606			2,645
Seahawk Holdings Limited	10/31/2022	7.24	%		L+ 6.00		1.00	%	Electronics/Electric	1,944			1,932			1,976
Turbocombustor Technology, Inc. (6)	12/02/2020	6.80%		L+ 4.50		1.00%		Aerospace and Defense	3,351			3,338			3,284
Sears Roebuck Acceptance Corp. (3)	06/30/2018	5.74	%		L+ 4.50		1.00	%	Retailers (except food and drug)	730			727			722
TVC Albany, Inc.	09/18/2024	6.30%		L+ 4.00		1.00%		Utilities	1,995			1,995			2,010
Securus Technologies Holdings, Inc. (6)	04/30/2020	4.75	%		L+ 3.50		1.25	%	Telecommunications	1,806			1,794			1,811
Vantage Specialty Chemicals, Inc.	10/28/2024	6.30%		L+ 4.00		1.00%		Chemical/Plastics	669			666			676
Serta Simmons Bedding, LLC	11/08/2023	4.80	%		L+ 3.50		1.00	%	Home Furnishings	1,990			1,981			1,937
Veritas US Inc. (3)	01/27/2023	6.80%		L+ 4.50		1.00%		Electronics/Electric	1,978			1,941			1,972
SMS System Maintenance Services, Inc.	10/30/2023	6.24	%		L+ 5.00		1.00	%	Business Equipment and Services	1,985			1,976			1,940
VF Holding Corp.	06/30/2023	5.13%		L+ 3.25		1.00%		Insurance	1,036			1,032			1,046
Solera, LLC (3)	03/03/2023	4.49	%		L+ 3.25		1.00	%	Electronics/Electric	941			929			945
West Corporation (7)	10/10/2024	4.50%		L+ 3.50		1.00%		Conglomerates	2,462			2,458			2,468
StandardAero Aviation Holdings, Inc.	07/07/2022	4.99	%		L+ 3.75		1.00	%	Aerospace and Defense	1,157			1,151			1,167
Woodford Express, LLC	01/27/2025	6.88%		L+ 5.00		1.00%		Energy	2,000			1,980			1,975
Sterigenics-Nordion Holdings, LLC (6)	05/15/2022	4.24	%		L+ 3.00		1.00	%	Health Care	889			882			891
WP CPP Holdings, LLC	12/28/2019	5.27%		L+ 3.50		1.00%		Aerospace and Defense	2,378			2,376			2,380
YI, LLC (6)	11/07/2024	6.30%		L+ 4.00		1.00%		Health Care	1,420			1,413			1,427
YI, LLC (6) (9)	11/07/2024	6.30%		L+ 4.00		1.00%		Health Care	553			199			204

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

~~SEPTEMBER~~MARCH 3031, ~~2017~~2018

(unaudited, in thousands)

Description (5), (12)	Maturity	InterestRate (1)		Basis PointSpreadAboveIndex (2)	~~Basis PointSpreadAboveIndex (2)~~	LIBOR Interest Rate Floor	~~LIBOR Interest Rate Floor~~	Industry	~~Industry~~ParAmount		~~ParAmount~~		Cost		~~Cost~~		FairValue		~~FairValue~~
First Lien Floating Rate Loans (continued) —133.6% of Net Assets
First Lien Floating Rate Loans (continued) —129.4% of Net Assets
Strategic Partners Acquisition Corp. (6)	06/30/2023	5.74	%		L+ 4.50		1.00	%	Clothing/Textiles		$	1,915			$	1,915			$	1,936
Zest Acquisition Corp. (6)	03/14/2025	5.61%		L+ 3.50		—%		Health Care	2,000				1,990				2,010
STS Operating, Inc.	02/12/2021	4.98	%		L+ 3.75		1.00	%	Industrial Equipment		1,869				1,875				1,885
Total First Lien Floating Rate Loans									$	172,573			$	170,798			$	169,620
Summit Midstream Partners Holdings, LLC (3), (6)	05/13/2022	7.24	%		L+ 6.00		1.00	%	Oil and Gas		611				605				620
Second Lien Floating Rate Loans —9.9% of Net Assets
Syniverse Holdings, Inc	04/23/2019	4.33	%		L+ 3.00		1.00	%	Telecommunications		1,464				1,448				1,420
Advantage Sales & Marketing Inc.	07/25/2022	8.27%		L+ 6.50		1.00%		Business Equipment and Services	$	1,000			$	996			$	963
Syniverse Holdings, Inc.	04/23/2019	4.31	%		L+ 3.00		1.00	%	Telecommunications		749				702				727
Albany Molecular Research, Inc.	08/30/2025	8.88%		L+ 7.00		1.00%		Health Care	3,002				3,054				3,027
TCH-2 Holdings, LLC	05/06/2021	5.24	%		L+ 4.00		1.00	%	Electronics/Electric		539				524				543
Almonde Inc (3)	06/13/2025	9.23%		L+ 7.25		1.00%		Technology	609				603				605
Thermasys Corp.	05/03/2019	5.31	%		L+ 4.00		1.25	%	Industrial Equipment		432				432				402
Anchor Glass Container Corporation (6)	12/07/2024	9.49%		L+ 7.75		1.00%		Containers and Glass Products	500				496				490
TIBCO Software Inc	12/04/2020	4.74	%		L+ 3.50		1.00	%	Business Equipment and Services		1,490				1,501				1,497
Applied Systems, Inc.	09/19/2025	9.30%		L+ 7.00		1.00%		Technology	344				344				357
Traverse Midstream Partners LLC (7)	09/21/2024	6.00	%		L+ 5.00		1.00	%	Oil and Gas		1,495				1,488				1,516
Asurion, LLC	08/04/2025	7.88%		L+ 6.00		—%		Diversified Insurance	567				567				583
Tricorbraun Holdings, Inc. (9)	11/30/2023	4.75	%		L+ 3.75		1.00	%	Containers and Glass Products		91				—				1
AVSC Holding Corp.	09/01/2025	9.26%		L+ 7.25		1.00%		Service & Equipment	576				573				580
Tricorbraun Holdings, Inc.	11/30/2023	5.08	%		L+ 3.75		—	%	Containers and Glass Products		902				919				910
BJ's Wholesale Club, Inc.	02/03/2025	9.19%		L+ 7.50		1.00%		Food/Drug Retailers	845				826				850
Truck Hero, Inc.	04/22/2024	5.33	%		L+ 4.00		1.00	%	Automotive		1,995				1,976				1,999
CH Hold Corp. (6)	02/03/2025	9.13%		L+ 7.25		1.00%		Automotive	149				148				151
Turbocombustor Technology, Inc. (6)	12/02/2020	5.83	%		L+ 4.50		1.00	%	Aerospace and Defense		3,369				3,353				3,268
Checkout Holding Corp.	04/11/2022	8.63%		L+ 6.75		1.00%		Business Equipment and Services	1,000				1,001				205
U.S. Renal Care, Inc.	12/30/2022	5.58	%		L+ 4.25		1.00	%	Health Care		491				488				477
Hyland Software Inc.	07/07/2025	8.88%		L+ 7.00		0.75%		Electronics/Electric	605				604				613
Unifrax I LLC (3)	04/04/2024	5.08	%		L+ 3.75		1.00	%	Industrial Equipment		740				738				746
Jazz Acquisition, Inc.	06/19/2022	9.05%		L+ 6.75		1.00%		Aerospace and Defense	1,250				1,252				1,182
University Support Services LLC	07/06/2022	5.49	%		L+ 4.25		1.00	%	Health Care		1,166				1,166				1,174
Navicure, Inc. (6)	10/31/2025	9.38%		L+ 7.50		1.00%		Health Care	500				495				503
Veritas US Inc. (3)	01/27/2023	5.83	%		L+ 4.50		1.00	%	Electronics/Electric		1,987				1,947				2,010
Optiv Inc. (6)	01/31/2025	9.13%		L+ 7.25		1.00%		Business Equipment and Services	444				443				431
VF Holding Corp.	06/30/2023	4.49	%		L+ 3.25		1.00	%	Insurance		1,041				1,037				1,046
ProAmpac PG Borrower LLC	11/18/2024	10.35%		L+ 8.50		1.00%		Containers and Glass Products	500				494				510
WP CPP Holdings, LLC	12/28/2019	4.81	%		L+ 3.50		1.00	%	Aerospace and Defense		2,391				2,388				2,338
Ranpak Corp. (6)	10/03/2022	9.07%		L+ 7.25		1.00%		Containers and Glass Products	820				819				826
Total First Lien Floating Rate Loans											$	178,910			$	177,705			$	175,274
Solenis International, L.P.	07/31/2022	8.73%		L+ 6.75		1.00%		Chemical/Plastics	500				499				477
Second Lien Floating Rate Loans —10.1% of Net Assets
Vantage Specialty Chemicals, Inc.	10/27/2025	10.02%		L+ 8.25		1.00%		Chemical/Plastics	125				123				126
Advantage Sales & Marketing Inc.	07/25/2022	7.74	%		L+ 6.50		1.00	%	Business Equipment and Services		$	1,000			$	995			$	906
WP CPP Holdings, LLC	04/30/2021	9.52%		L+ 7.75		1.00%		Aerospace and Defense	493				498				491
Albany Molecular Research, Inc. (7)	08/30/2025	8.33	%		L+ 7.00		1.00	%	Health Care		1,500				1,534				1,524
Total Second Lien Floating Rate Loans									$	13,829			$	13,835			$	12,970
Almonde Inc (3)	06/13/2025	8.57	%		L+ 7.25		1.00	%	Technology		609				603				621
CLO Equity —32.0% of Net Assets
Anchor Glass Container Corporation	12/07/2024	9.07	%		L+ 7.75		1.00	%	Containers and Glass Products		500				496				507
AMMC 2017-21A, Subordinated Notes (3) (4) (6)	11/02/2030	11.70%							$	2,750			$	2,616			$	2,498
Applied Systems, Inc. (7)	09/19/2025	8.00	%		L+ 7.00		1.00	%	Technology		344				344				356
Apidos CLO XIV, Income Notes (3) (4) (6)	04/15/2025	—%							5,900				1,298				193
Asurion, LLC	08/04/2025	7.24	%		L+ 6.00		—	%	Diversified Insurance		567				567				581
Apidos CLO XVIII, Income Notes (3) (4) (6)	07/22/2026	4.64%							2,500				1,671				1,433
BJ's Wholesale Club, Inc.	02/03/2025	8.73	%		L+ 7.50		1.00	%	Food/Drug Retailers		845				824				810
Apidos CLO XXVII, Income Notes (3) (4) (6)	07/17/2030	8.11%							5,000				4,249				4,066
CH Hold Corp.	02/01/2025	8.48	%		L+ 7.25		1.00	%	Automotive		149				148				152
Ares XXIX CLO Ltd., Subordinated Notes (3) (4) (6)	04/17/2026	6.39%							4,750				3,179				2,180
Checkout Holding Corp.	04/11/2022	7.99	%		L+ 6.75		1.00	%	Business Equipment and Services		1,000				1,002				576
Avery Point II CLO, Income Notes (3) (4) (6)	07/17/2025	—%							3,200				1,347				48
Del Monte Foods, Inc. (3)	08/18/2021	8.69	%		L+ 7.25		1.00	%	Food Products		1,500				1,499				743
Babson 2015-1, Income Notes (3) (4) (6)	01/20/2031	17.35%							2,840				2,039				1,934
Hyland Software Inc.	07/07/2025	8.23	%		L+ 7.00		0.75	%	Electronics/Electric		298				297				305
Carlyle Global Market Strategies CLO 2015-3, LTD., Subordinated Notes (3) (4) (6)	07/28/2028	9.65%							3,000				2,242				2,357
Jazz Acquisition, Inc.	06/19/2022	8.08	%		L+ 6.75		1.00	%	Aerospace and Defense		1,250				1,254				1,191
Carlyle Global Market Strategies CLO 2017-3, LTD., Subordinated Notes (3) (4) (6)	07/20/2029	9.31%							2,000				1,772				1,846
Mitchell International, Inc.	10/11/2021	8.81	%		L+ 7.50		1.00	%	Electronics/Electric		750				716				758
NVA Holdings, Inc.	08/14/2022	8.33	%		L+ 7.00		1.00	%	Health Care		1,500				1,506				1,513
Optiv Inc.	01/31/2025	8.56	%		L+ 7.25		1.00	%	Business Equipment and Services		444				442				413
ProAmpac PG Borrower LLC	11/18/2024	9.82	%		L+ 8.50		1.00	%	Containers and Glass Products		500				493				509

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

~~SEPTEMBER~~MARCH 3031, ~~2017~~2018

(unaudited, in thousands)

Description (5), (12)	Maturity	InterestRate (1)		Basis PointSpreadAboveIndex (2)	~~Basis PointSpreadAboveIndex (2)~~	LIBOR Interest Rate Floor	~~LIBOR Interest Rate Floor~~	Industry	~~Industry~~ParAmount		~~ParAmount~~		Cost		~~Cost~~		FairValue		~~FairValue~~
Second Lien Floating Rate Loans (continued)—10.1% of Net Assets
CLO Equity (continued) — 32.0% of Net Assets
Ranpak Corp. (6)	10/03/2022	8.48	%		L+ 7.25		1.00	%	Containers and Glass Products		$	845			$	845			$	841
Cent CLO 18 Limited, Subordinated Notes (3) (4) (6)	07/23/2025	26.94%							4,675				3,114				2,578
Solenis International, L.P.	07/31/2022	8.07	%		L+ 6.75		1.00	%	Chemical/Plastics		500				498				499
Cent CLO 19 Limited, Subordinated Notes (3) (4) (6)	10/29/2025	12.42%							2,750				2,056				1,591
WP CPP Holdings, LLC (6)	04/30/2021	9.06	%		L+ 7.75		1.00	%	Aerospace and Defense		492				499				458
Dryden 30 Senior Loan Fund, Subordinated Notes (3) (4) (6)	11/15/2028	19.54%							2,500				1,390				1,423
Total Second Lien Floating Rate Loans											$	14,593			$	14,562			$	13,263
Dryden 30A Senior Loan Fund, Subordinated Notes (3) (4) (6)	11/15/2028	18.54%							250				126				142
CLO Equity —29.9% of Net Assets
Dryden 38 Senior Loan Fund, Subordinated Notes (3) (4) (6)	07/15/2027	8.12%							3,000				2,297				2,166
AMMC 2017-21A, Subordinated Notes (3), (4), (6), (7)	11/02/2030	12.50	%								$	2,750			$	2,471			$	2,454
Galaxy XVI CLO, Ltd., Subordinated Notes (3) (4) (6)	11/16/2025	11.00%							2,750				1,718				1,174
Apidos CLO XIV, Income Notes (3), (4), (6)	04/15/2025	—	%								5,900				2,184				1,298
Highbridge Loan Management 2013-2, Ltd., Subordinated Notes (3) (4) (6)	10/20/2029	10.87%							1,401				843				840
Apidos CLO XVIII, Income Notes (3), (4), (6)	07/22/2026	7.46	%								2,500				1,726				1,432
Magnetite VIII, Limited, Subordinated Notes (3) (4) (6)	04/15/2026	7.31%							3,000				2,103				1,513
Apidos CLO XXVII, Subordinated Notes (3), (4), (6)	07/17/2030	10.54	%								5,000				4,510				4,430
Neuberger Berman CLO XV, Ltd., Subordinated Notes (3) (4) (6)	10/15/2029	10.77%							3,410				1,945				1,870
Ares XXIX CLO Ltd., Subordinated Notes (3), (4), (6)	04/17/2026	7.58	%								4,750				3,309				2,470
Octagon Investment Partners XX, Ltd., Subordinated Notes (3) (4) (6)	08/12/2026	6.62%							2,500				1,684				1,254
Avery Point II CLO, Income Notes (3), (4), (6)	07/17/2025	15.83	%								3,200				1,714				448
OZLM XIX, Subordinated Notes (3) (4) (6)	11/22/2030	8.60%							1,500				1,404				1,326
Babson 2015-1, Income Notes (3), (4), (6)	04/20/2027	15.41	%								2,500				1,849				1,444
OZLM XXI, Subordinated Notes (3) (4) (6)	01/20/2031	8.57%							1,750				1,630				1,592
Betony CLO, Ltd., Subordinated Notes (3), (4), (6)	04/15/2027	6.61	%								2,500				1,803				1,106
Venture XVIII CLO, Subordinated Notes (3) (4) (6)	10/15/2029	12.30%							1,750				1,248				1,303
Carlyle Global Market Strategies CLO 2014-3, LTD., Subordinated Notes (3), (4), (6)	07/27/2026	14.91	%								2,000				1,537				1,489
Voya 2017-2, Subordinated Notes (3) (4) (6)	06/07/2030	8.31%							2,000				1,785				1,806
Carlyle Global Market Strategies CLO 2015-3, LTD., Subordinated Notes (3), (4), (6)	07/28/2028	13.19	%								3,000				2,252				2,279
Voya CLO 2017-4, Subordinated Notes, (3) (4) (6)	10/15/2030	8.31%							2,270				2,307				2,245
Carlyle Global Market Strategies CLO 2017-3, LTD., Subordinated Notes (3), (4), (6)	07/20/2029	10.06	%								2,000				1,843				1,830
Wind River CLO 2014-1, Ltd. (3) (4) (6)	04/18/2026	5.12%							5,050				3,338				2,599
Cent CLO 18 Limited, Subordinated Notes (3), (4), (6)	07/23/2025	17.28	%								4,675				3,144				2,366
Total CLO Equity									$	72,496			$	49,401			$	41,977
Cent CLO 19 Limited, Subordinated Notes (3), (4), (6)	10/29/2025	15.76	%								2,750				2,027				1,533
Common Equity —0.1% of Net Assets
Dryden 30 Senior Loan Fund, Subordinated Notes (3), (4), (6)	11/15/2025	15.68	%								2,500				1,332				1,013
Ameriforge Group Inc., Common Equity (1,570 shares) (6) (11)									2				—				75
Dryden 38 Senior Loan Fund, Subordinated Notes (3), (4), (6)	07/15/2027	9.27	%								3,000				2,337				2,301
Total Common Equity									$	2			$	—			$	75
Galaxy XVI CLO, Ltd., Subordinated Notes (3), (4), (6)	11/16/2025	10.34	%								2,750				1,758				1,262
Warrants —0.0% of Net Assets
Highbridge Loan Management 2013-2, Ltd., Subordinated Notes (3), (4), (6)	10/20/2029	12.71	%								1,000				607				443
Ameriforge Group Inc., Warrants (4,984 shares) (6) (11)									5				—				—
Magnetite VIII, Limited, Subordinated Notes (3), (4), (6)	04/15/2026	8.33	%								3,000				2,178				1,670
Total Warrants									$	5			$	—			$	—
Neuberger Berman CLO XV, Ltd., Subordinated Notes (3), (4), (6)	10/15/2025	13.43	%								3,410				1,911				1,614
Total Non-Control/Non-Affiliate Investments (8) —171.4% of Net Assets									$	258,905			$	234,034			$	224,642
Octagon Investment Partners XX, Ltd., Subordinated Notes (3), (4), (6)	08/12/2026	8.74	%								2,500				1,743				1,264
Liabilities in Excess of Other Assets — (71.4%) of Net Assets																	(93,571		)
Voya 2017-2, Subordinated Notes (3), (4), (6)	06/07/2030	10.18	%								2,000				1,830				1,846
Net Assets — 100.0%																	$	131,071
Wind River CLO 2014-1, Ltd. (3), (4), (6)	04/18/2026	15.09	%								5,050				3,478				3,218
Total CLO Equity											$	68,735			$	47,543			$	39,210

(1) For each debt investment we have provided the weighted-average interest rate in effect as of March 31, 2018. For each CLO investment we have provided the yield as of March 31, 2018 determined using the effective interest method that will be applied to the current amortized cost of the investment in the following quarter. See ~~notes~~“Note 2 - Significant Accounting Policies” to the consolidated financial statements regarding the recognition of investment income on CLOs.


(2)	Floating rate debt investments typically accrue interest at a predetermined spread relative to an index, typically the London Interbank Offered Rate (“LIBOR” or “L”) or the prime index rate (“PRIME” or “P”), and reset monthly, quarterly or semi-annually. These instruments may be subject to a LIBOR or PRIME rate floor.


(3)	Investments that are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. As of March 31, 2018, qualifying assets represented 77% of total assets at fair value.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

~~SEPTEMBER~~MARCH 3031, ~~2017~~2018

(unaudited, in thousands)

Description (5), (12)	Maturity	InterestRate (1)	Basis PointSpreadAboveIndex (2)	LIBOR Interest Rate Floor	Industry	ParAmount		Cost		FairValue
Common Equity —0.0% of Net Assets
Ameriforge Group Inc., Common Equity (1,570 shares) (6), (11), (12)					Manufacturing	—		—		49
Total Common Equity						$	—	$	—	$	49
Warrants —0.0% of Net Assets
Ameriforge Group Inc., Warrants (4,984 shares) (6), (11), (12)					Manufacturing	—		—		—
Total Warrants						$	—	$	—	$	—
Total Non-Control/Non-Affiliate Investments (8) —173.6% of Net Assets						$	262,238	$	239,810	$	227,796
Liabilities in Excess of Other Assets — (73.6%) of Net Assets										(96,571		)
Net Assets — 100.0%										$	131,225

(1) For each debt investment we have provided the weighted-average interest rate in effect as of September 30, 2017. For each CLO investment we have provided the yield as of September 30, 2017 determined using the effective interest method that will be applied to the current amortized cost of the investment in the following quarter. See Note 2 to the consolidated financial statements regarding the recognition of investment income on CLOs.

(2) Floating rate debt investments typically accrue interest at a predetermined spread relative to an index, typically the London Interbank Offered Rate (“LIBOR” or “L”) or the prime index rate (“PRIME” or “P”), and reset monthly, quarterly or semi-annually. These instruments may be subject to a LIBOR or PRIME rate floor.

(3) Investments that are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. As of September 30, 2017, qualifying assets represented 75% of total assets at fair value.


(4)	These securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions that are exempt from registration, normally to qualified institutional buyers.

(5) All first lien floating rate loans and second lien floating rate loans are held at ACSF Funding I, LLC (“ACSF Funding”), a wholly owned special purpose financing vehicle, and are pledged as collateral for a secured revolving credit facility (see “Note 7 - Debt”).


(6)	Fair value was determined using significant unobservable inputs and are classified as Level 3 in the fair value hierarchy.

(7) All or a portion of this position has not settled as of ~~September~~March 3031, ~~2017~~2018.

(8) Net estimated unrealized loss for federal income tax purposes iswas $1312,~~034~~078 as of ~~September~~March 3031, ~~2017~~2018 based on a tax cost of $~~240~~236,~~830~~720. Estimated aggregate gross unrealized loss for federal income tax purposes as of ~~September~~March 3031, ~~2017~~2018 is $14,~~660~~247; estimated aggregate gross unrealized gain for federal income tax purposes as of ~~September~~March 3031, ~~2017~~2018 iswas $12,~~626~~169.

(9) ~~Debt~~As ~~investment~~of ~~has~~March an31, ~~unfunded~~2018, ~~loan~~the ~~commitment~~Company had the following commitments to fund various delayed draw “Senior Floating Rate Loans” or “SFRLs.” Such commitments are subject to the satisfaction of ~~$90~~certain conditions set forth in the documents governing these loans and there can be no assurance that such conditions will be satisfied.9 (See Note ~~11)~~10 to the consolidated financial statements for further information on delayed draw loan commitments.

(10) Investment has been placed on non-accrual status as of September 30, 2017.



(in thousands) Portfolio Company	Total revolving and delayed draw loan commitments		Less: drawn commitments			Total undrawn commitments
Access CIG, LLC	$	432	$	—		$	432
YI, LLC	553		(201		)	352
	$	985	$	(201	)	$	784


(10)	Investment was placed on non-accrual status as of March 31, 2018.


(11)	Non-income producing.

(12) All of the Company’s portfolio company investments, which as of ~~September~~March 3031, ~~2017~~2018 represented ~~173~~171.64% of the Company’s net assets or 96.09% of the Company’s total assets, ~~are~~were subject to legal restrictions on sales.

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED SCHEDULE OF INVESTMENTS

DECEMBER 31, ~~2016~~2017

(in thousands)

Description (13)	Maturity	Interest Rate (1)		Basis PointSpreadAboveIndex (2)	LIBOR Interest Rate Floor		Industry (3)	ParAmount		Cost		FairValue
Description (12)	Maturity	Interest Rate (1)		Basis PointSpreadAboveIndex (2)	LIBOR Interest Rate Floor		Industry	ParAmount		Cost		FairValue
Non-Control/Non-Affiliate Investments
First Lien Floating Rate Loans — 137.5% of Net Assets
First Lien Floating Rate Loans —130.6% of Net Assets (5)
24 Hour Fitness Worldwide, Inc. (6)	05/28/2021	4.75	%	L+ 3.75	1.00	%	Leisure Goods/Activities/Movies	$	1,952	$	1,947	$	1,937
1A Smart Start LLC (6) (7)	2/21/2022	6.19	%	L+ 4.50	1.00	%	Electronics/Electric	$	753	$	751	$	754
Acosta, Inc. (6)	09/26/2021	4.25	%	L+ 3.25	1.00	%	Business Equipment and Services	2,450		2,420		2,396
24 Hour Fitness Worldwide, Inc.	5/28/2021	5.44	%	L+ 3.75	1.00	%	Leisure Goods/Activities/Movies	1,932		1,928		1,937
ADMI Corp. (6)	04/29/2022	5.25	%	L+ 4.25	1.00	%	Retailers (except food & drug)	1,534		1,531		1,549
Academy, Ltd.	7/1/2022	5.57	%	L+ 4.00	1.00	%	Retailers (except Food and Drug)	895		807		709
Aegis Toxicology Sciences Corporation (6)	02/24/2021	5.50	%	L+ 4.50	1.00	%	Health Care	1,625		1,618		1,550
Acosta, Inc.	9/26/2021	4.82	%	L+ 3.25	1.00	%	Business Equipment and Services	2,425		2,401		2,142
Agrofresh Inc. (4), (6)	07/31/2021	5.75	%	L+ 4.75	1.00	%	Chemical/Plastics	641		639		594
Acrisure, LLC	11/22/2023	5.65	%	L+ 4.25	1.00	%	Banking, Finance & Insurance	330		329		334
Air Medical Group Holdings, Inc. (6)	04/28/2022	4.25	%	L+ 3.25	1.00	%	Health Care	1,970		1,974		1,970
Advanced Integration Technology LP (6)	4/3/2023	6.32	%	L+ 4.75	1.00	%	Industrial Equipment	1,985		1,985		2,000
Albertson’s LLC (6)	12/21/2022	4.25	%	L+ 3.25	0.75	%	Food/drug retailers	988		965		1,002
Aegis Toxicology Sciences Corporation	2/24/2021	6.17	%	L+ 4.50	1.00	%	Health Care	1,608		1,603		1,558
AlixPartners, LLP (6)	07/28/2022	4.00	%	L+ 3.00	1.00	%	Financial Intermediaries	980		978		990
Air Medical Group Holdings, Inc.	4/28/2022	4.94	%	L+ 3.25	1.00	%	Health Care	1,950		1,953		1,946
Alliant Holdings Intermediate, LLC (6)	08/12/2022	5.25	%	L+ 4.00	1.00	%	Diversified Insurance	497		493		503
Air Medical Group Holdings, Inc.	4/28/2022	5.67	%	L+ 4.00	1.00	%	Health Care	496		494		497
Alliant Holdings Intermediate, LLC (6)	08/12/2022	4.75	%	L+ 3.50	1.00	%	Diversified Insurance	1,034		1,032		1,042
Albertson's LLC	12/21/2022	4.67	%	L+ 3.00	0.75	%	Food/Drug Retailers	980		961		962
Allied Universal Holdco LLC (6), (9)	07/28/2022	5.50	%	L+ 4.50	1.00	%	Business equipment and services	84		82		86
American Residential Services, LLC	6/30/2022	5.57	%	L+ 4.00	1.00	%	Ecological Services and Equipment	1,980		1,975		1,987
Allied Universal Holdco LLC (6)	07/28/2022	5.50	%	L+ 4.50	1.00	%	Business Equipment and Services	832		824		841
American Tire Distributors, Inc.	9/1/2021	5.82	%	L+ 4.25	1.00	%	Retailers (except Food and Drug)	956		953		964
Altice France S.A. (4), (6)	01/15/2024	5.14	%	L+ 4.25	0.75	%	Cable and Satellite Television	1,492		1,479		1,515
AqGen Ascensus, Inc.	12/5/2022	5.69	%	L+ 4.00	1.00	%	Financial Intermediaries	1,719		1,675		1,728
American Tire Distributors, Inc. (5)	09/01/2021	5.25	%	L+ 4.25	1.00	%	Retailers (except food & drug)	966		962		965
Arctic Glacier U.S.A., Inc.	3/20/2024	5.82	%	L+ 4.25	1.00	%	Food Products	993		988		1,005
Amneal Pharmaceuticals LLC (6)	11/01/2019	4.50	%	L+ 3.50	1.00	%	Drugs	982		982		986
Ardent Legacy Acquisitions, Inc.	8/4/2021	7.07	%	L+ 5.50	1.00	%	Health Care	321		319		322
AmWINS Group, LLC (6)	09/06/2019	4.75	%	L+ 3.75	1.00	%	Diversified Insurance	2,904		2,913		2,940
Argon Medical Devices, Inc. (7)	10/27/2024	5.25	%	L+ 4.25	1.00	%	Health Care	1,500		1,493		1,512
Anchor Glass Container Corporation (6)	12/07/2023	4.25	%	L+ 3.25	1.00	%	Containers and Glass Products	1,722		1,713		1,739
AssuredPartners, Inc.	10/22/2024	5.07	%	L+ 3.50	—	%	Insurance	1,327		1,327		1,337
APLP Holdings Limited Partnership (4), (6)	04/13/2023	6.00	%	L+ 5.00	1.00	%	Utilities	457		445		464
BCP Raptor, LLC	6/24/2024	5.73	%	L+ 4.25	1.00	%	Energy	1,095		1,071		1,101
AqGen Ascensus, Inc. (6)	12/05/2022	5.50	%	L+ 4.50	1.00	%	Financial Intermediaries	1,486		1,433		1,488
BCPE Eagle Buyer LLC (6)	3/16/2024	5.82	%	L+ 4.25	1.00	%	Health Care	1,290		1,278		1,264
Aquilex LLC (6)	12/31/2020	5.00	%	L+ 4.00	1.00	%	Business Equipment and Services	906		905		889
Big Jack Holdings LP (6)	4/5/2024	5.57	%	L+ 4.00	1.00	%	Food/Drug Retailers	1,858		1,850		1,865
Ardent Legacy Acquisitions, Inc. (6)	08/04/2021	6.50	%	L+ 5.50	1.00	%	Health Care	329		327		328
BJ's Wholesale Club, Inc.	2/3/2024	4.95	%	L+ 3.50	1.00	%	Food/Drug Retailers	1,894		1,891		1,866
Arnhold and S. Bleichroeder Holdings, Inc. (6)	12/01/2022	5.00	%	L+ 4.00	0.75	%	Financial Intermediaries	707		695		715
Blackboard, Inc.	6/30/2021	6.35	%	L+ 5.00	1.00	%	Electronics/Electric	2,387		2,387		2,369
Ascend Learning, LLC (6)	07/31/2019	5.50	%	L+ 4.50	1.00	%	Business Equipment and Services	581		580		586
Brand Energy & Infrastructure Services, Inc.	6/21/2024	5.61	%	L+ 4.25	1.00	%	Oil and Gas	2,483		2,459		2,495
Asurion, LLC (6)	08/04/2022	5.00	%	L+ 4.00	1.00	%	Diversified Insurance	2,144		2,125		2,176
Calceus Acquisition, Inc.	1/31/2020	5.57	%	L+ 4.00	1.00	%	Clothing/Textiles	2,286		2,289		2,143
Avaya Inc. (6)	05/29/2020	6.25	%	L+ 5.25	1.00	%	Electronics/Electric	1,484		1,256		1,294
Catalina Marketing Corporation	4/9/2021	5.07	%	L+ 3.50	1.00	%	Business Equipment and Services	2,388		2,387		1,883
Bass Pro Shops (6)	12/15/2023	5.97	%	L+ 5.00	0.75	%	Retailers (except food & drug)	1,000		990		992
CB Poly Investments, LLC	8/16/2023	6.32	%	L+ 4.75	1.00	%	Clothing/Textiles	1,731		1,719		1,745
BJ’s Wholesale Club, Inc. (6)	09/26/2019	4.50	%	L+ 3.50	1.00	%	Food/Drug Retailers	1,424		1,424		1,439
Central Security Group, Inc.	10/6/2021	7.19	%	L+ 5.63	1.00	%	Electronics/Electric	1,995		2,009		2,005
Blackboard Inc. (6)	06/30/2021	6.00	%	L+ 5.00	1.00	%	Electronics/Electric	2,411		2,411		2,434
Charter NEX US, Inc.	5/16/2024	4.82	%	L+ 3.25	1.00	%	Manufacturing	597		594		599
BWay Intermediate Company, Inc. (6)	08/14/2023	4.75	%	L+ 3.75	1.00	%	Containers and Glass Products	2,344		2,330		2,355
CIBT Global, Inc.	6/1/2024	5.44	%	L+ 3.75	1.00	%	Service & Equipment	995		993		1,000
C.H.I. Overhead Doors, Inc. (6)	07/29/2022	4.50	%	L+ 3.50	1.00	%	Building and Development	665		662		667
Comfort Holding, LLC	2/5/2024	6.18	%	L+ 4.75	1.00	%	Home Furnishings	2,252		2,240		2,056
Calceus Acquisition, Inc. (6)	01/31/2020	5.00	%	L+ 4.00	1.00	%	Clothing/Textiles	2,313		2,319		2,030
CT Technologies Intermediate Holdings, Inc.	12/1/2021	5.82	%	L+ 4.25	1.00	%	Electronics/Electric	488		486		487
Candy Intermediate Holdings, Inc. (6)	06/15/2023	5.50	%	L+ 4.50	1.00	%	Food Products	1,791		1,789		1,807
DiversiTech Holdings, Inc.	6/3/2024	5.20	%	L+ 3.50	1.00	%	Industrials	1,990		1,985		2,002
Carecore National, LLC (6)	03/05/2021	5.50	%	L+ 4.50	1.00	%	Health Care	1,999		1,999		1,971
DJO Finance LLC	6/8/2020	4.59	%	L+ 3.25	1.00	%	Health Care	992		976		981
DTI Holdco, Inc.	10/2/2023	6.63	%	L+ 5.25	1.00	%	Electronics/Electric	742		741		742
Dynacast International LLC	1/28/2022	4.94	%	L+ 3.25	1.00	%	Industrial Equipment	531		531		535
Eastern Power, LLC	10/2/2023	5.32	%	L+ 3.75	1.00	%	Utilities	1,885		1,876		1,904
ECi Software Solutions, Inc.	9/27/2024	5.94	%	L+ 4.25	1.00	%	Technology	1,496		1,482		1,511
EIG Investors Corp. (3)	2/9/2023	5.46	%	L+ 4.00	1.00	%	Electronics/Electric	2,244		2,238		2,261
Epicor Software Corporation	6/1/2022	5.32	%	L+ 3.75	1.00	%	Electronics/Electric	1,949		1,936		1,956

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

DECEMBER 31, ~~2016~~2017

(in thousands)

Description (13)	Maturity	Interest Rate (1)		Basis PointSpreadAboveIndex (2)	LIBOR Interest Rate Floor		Industry (3)	ParAmount		Cost		FairValue
Description (12)	Maturity	Interest Rate (1)		Basis PointSpreadAboveIndex (2)	LIBOR Interest Rate Floor		Industry	ParAmount		Cost		FairValue
First Lien Floating Rate Loans (continued) — 137.5% of Net Assets
First Lien Floating Rate Loans (continued) —130.6% of Net Assets (5)
CB Poly Investments, LLC (6)	08/16/2023	6.25	%	L+ 5.25	1.00	%	Clothing/Textiles	$	1,496	$	1,482	$	1,515
ExamWorks Group, Inc.	7/27/2023	4.82	%	L+ 3.25	1.00	%	Business Equipment and Services	$	988	$	991	$	995
CCM Merger, Inc. (6)	08/06/2021	4.02	%	L+ 3.25	0.75	%	Lodging and Casinos	793		789		803
Fairmount Santrol Inc.	11/1/2022	7.69	%	L+ 6.00	1.00	%	Nonferrous Metals/Minerals	1,811		1,785		1,837
CEC Entertainment, Inc. (6)	02/12/2021	4.00	%	L+ 3.00	1.00	%	Leisure Goods/Activities/Movies	742		720		741
FHC Health Systems, Inc.	12/23/2021	5.57	%	L+ 4.00	1.00	%	Health Care	1,477		1,461		1,449
Checkout Holding Corp. (6)	04/09/2021	4.50	%	L+ 3.50	1.00	%	Business Equipment and Services	2,437		2,436		2,133
Flexera Software LLC	4/2/2020	5.07	%	L+ 3.50	1.00	%	Electronics/Electric	993		993		999
CHG Healthcare Services, Inc. (6)	06/07/2023	4.75	%	L+ 3.75	1.00	%	Health Care	662		662		670
Genesys Telecommunications Laboratories, Inc	12/1/2023	5.44	%	L+ 3.75	—	%	Business Equipment and Services	496		490		500
CHS/Community Health Systems, Inc. (4), (6)	01/27/2021	4.00	%	L+ 3.00	1.00	%	Health Care	1,450		1,394		1,409
Go Wireless Inc. (7)	12/24/2024	7.50	%	L+ 6.50	1.00	%	Telecommunications	1,469		1,454		1,458
CityCenter Holdings, LLC (6)	10/16/2020	4.25	%	L+ 3.25	1.00	%	Lodging and Casinos	1,461		1,467		1,480
HGIM Corp. (6) (10)	6/18/2020	7.75	%	L+ 3.50	1.00	%	Surface Transport	1,444		1,449		570
CNT Holdings III Corp (6)	01/22/2023	5.25	%	L+ 4.25	1.00	%	Retailers (except food & drug)	695		691		705
Hummel Station LLC (6)	10/27/2022	7.57	%	L+ 6.00	1.00	%	Energy	2,000		1,883		1,900
Compuware Corporation (6)	12/15/2021	6.25	%	L+ 5.25	1.00	%	Electronics/Electric	953		935		960
Hyland Software, Inc.	7/1/2022	4.82	%	L+ 3.25	0.75	%	Electronics/Electric	2,440		2,425		2,460
Cotiviti Corporation (4), (6)	09/28/2023	3.75	%	L+ 2.75	0.75	%	Health Care	764		759		772
IBC Capital Limited (3)	9/9/2021	5.29	%	L+ 3.75	1.00	%	Business Equipment and Services	987		980		989
CPG International Inc. (6)	09/30/2020	4.75	%	L+ 3.75	1.00	%	Building and Development	1,918		1,918		1,935
Immucor, Inc.	6/15/2021	6.57	%	L+ 5.00	1.00	%	Conglomerates	2,488		2,465		2,533
CPI Buyer, LLC (6)	08/16/2021	5.50	%	L+ 4.50	1.00	%	Industrial Equipment	1,960		1,949		1,941
Indra Holdings Corp.	5/1/2021	5.63	%	L+ 4.25	1.00	%	Clothing/Textiles	1,185		1,180		701
CT Technologies Intermediate Holdings, Inc. (6)	12/01/2021	5.25	%	L+ 4.25	1.00	%	Electronics/Electric	493		491		472
Infoblox Inc.	11/7/2023	6.57	%	L+ 5.00	1.00	%	Electronics/Electric	1,920		1,894		1,935
Dell International LLC (6)	09/07/2023	4.02	%	L+ 3.25	0.75	%	Electronics/Electric	2,000		1,990		2,037
Informatica Corporation	8/5/2022	5.19	%	L+ 3.50	1.00	%	Electronics/Electric	1,928		1,925		1,937
Dole Food Company, Inc. (6)	11/01/2018	4.61	%	L+ 3.50	1.00	%	Food Products	2,486		2,483		2,505
Information Resources, Inc.	1/18/2024	5.62	%	L+ 4.25	1.00	%	Business Equipment and Services	2,413		2,403		2,429
Duff & Phelps Corporation (6)	04/23/2020	4.75	%	L+ 3.75	1.00	%	Financial Intermediaries	2,394		2,395		2,417
Innovative XCessories & Services LLC (6) (7)	11/29/2022	6.21	%	L+ 4.75	1.00	%	Automotive	1,997		1,987		2,022
Eastern Power, LLC (6)	10/02/2021	5.00	%	L+ 4.00	1.00	%	Utilities	1,932		1,923		1,953
IPC Corp. (6)	8/6/2021	5.88	%	L+ 4.50	1.00	%	Telecommunications	1,459		1,455		1,433
Electrical Components International, Inc. (6)	05/28/2021	5.75	%	L+ 4.75	1.00	%	Conglomerates	1,808		1,812		1,817
JAGGAER, Inc. (6) (7)	12/21/2024	5.00	%	L+ 4.00	1.00	%	Technology	2,500		2,487		2,494
Emerald Expositions Holding, Inc. (6)	06/17/2020	4.75	%	L+ 3.75	1.00	%	Publishing	2,449		2,462		2,468
Jazz Acquisition, Inc.	6/19/2021	5.19	%	L+ 3.50	1.00	%	Aerospace and Defense	1,932		1,935		1,891
Epicor Software Corporation (6)	06/01/2022	4.75	%	L+ 3.75	1.00	%	Electronics/Electric	1,954		1,939		1,965
JC Penney Co Inc (3)	6/23/2023	5.73	%	L+ 4.25	1.00	%	Retailers (except Food and Drug)	731		734		686
Erie Acquisition Holdings, Inc. (6)	03/01/2023	6.06	%	L+ 4.75	1.00	%	Business Equipment and Services	492		483		500
Jo-Ann Stores, Inc.	10/20/2023	6.55	%	L+ 5.00	1.00	%	Retailers (except Food and Drug)	564		555		545
Expro Finservices S.à r.l. (4), (6)	09/02/2021	5.75	%	L+ 4.75	1.00	%	Oil and gas	1,955		1,935		1,667
KEMET Corporation (3), (6)	4/26/2024	7.57	%	L+ 6.00	1.00	%	Electronics	2,712		2,678		2,742
Fairmount Santrol, Inc. (4), (6)	09/05/2019	4.50	%	L+ 3.50	1.00	%	Nonferrous Metals/Minerals	423		424		412
Kingpin Intermediate Holdings LLC (6)	7/3/2024	5.73	%	L+ 4.25	1.00	%	Service & Equipment	871		867		881
FHC Health Systems, Inc. (6)	12/23/2021	5.00	%	L+ 4.00	1.00	%	Health Care	1,492		1,471		1,455
Kronos Acquisition Intermediate Inc.	8/26/2022	6.17	%	L+ 4.50	1.00	%	Cosmetics/Toiletries	711		699		717
Filtration Group Corporation (6)	11/23/2020	4.25	%	L+ 3.25	1.00	%	Industrial Equipment	988		988		997
Kronos Incorporated (3)	11/1/2023	4.90	%	L+ 3.50	1.00	%	Electronics/Electric	2,277		2,270		2,295
Fitness International, LLC (6)	07/01/2020	6.00	%	L+ 5.00	1.00	%	Leisure Goods/Activities/Movies	1,746		1,724		1,751
LANDesk Software Group, Inc.	1/20/2024	5.82	%	L+ 4.25	1.00	%	Electronics/Electric	2,583		2,567		2,463
Flexera Software LLC (6)	04/02/2020	4.50	%	L+ 3.50	1.00	%	Electronics/Electric	998		998		1,000
Learning Care Group (US) No. 2 Inc. (6)	5/5/2021	5.33	%	L+ 4.00	1.00	%	Business Equipment and Services	987		987		994
Gates Global LLC (6)	07/06/2021	4.25	%	L+ 3.25	1.00	%	Automotive	1,452		1,451		1,455
Legalzoom.com, Inc. (6)	11/21/2024	5.94	%	L+ 4.50	1.00	%	Technology	1,931		1,912		1,936
Global Tel*Link Corporation (6)	05/23/2020	5.00	%	L+ 3.75	1.25	%	Telecommunication	1,649		1,632		1,645
Liberty Cablevision of Puerto Rico LLC	1/7/2022	4.86	%	L+ 3.50	1.00	%	Cable and Satellite Television	1,000		995		973
Gold Merger Co, Inc. (6)	07/27/2023	4.75	%	L+ 3.75	1.00	%	Business Equipment and Services	998		1,001		1,005
LSF9 Atlantis Holdings LLC	5/1/2023	7.36	%	L+ 6.00	1.00	%	Telecommunications/Cellular Communications	2,095		2,094		2,106
Greeneden U.S. Holdings I, LLC (6)	12/01/2023	6.25	%	L+ 5.25	1.00	%	Electronics/Electric	500		493		510
MB Aerospace Holdings II Corp. (7)	12/28/2024	5.00	%	L+ 4.00	1.00	%	Aerospace and Defense	2,000		1,990		2,005
Gruden Acquisition, Inc. (6)	08/18/2022	5.75	%	L+ 4.75	1.00	%	Surface Transport	330		327		316
McGraw-Hill Global Education Holdings, LLC	5/4/2022	5.57	%	L+ 4.00	1.00	%	Publishing	1,976		1,966		1,977
Hercules Achievement, Inc.(6)	12/10/2021	5.00	%	L+ 4.00	1.00	%	Clothing/Textiles	748		744		760
Meter Readings Holdings, LLC (6)	8/29/2023	7.23	%	L+ 5.75	1.00	%	Electronics/Electric	658		650		662
Mirion Technologies, Inc.	3/31/2022	6.44	%	L+ 4.75	1.00	%	Utilities	1,985		1,987		1,985
MND Holdings III Corp (6)	6/19/2024	5.44	%	L+ 3.75	1.00	%	Consumer Products	1,791		1,783		1,804
Mohegan Tribal Gaming Authority	10/13/2023	5.57	%	L+ 4.00	1.00	%	Lodging and Casinos	1,489		1,508		1,504
Murray Energy Corporation	4/16/2020	8.94	%	L+ 7.25	1.00	%	Nonferrous Metals/Minerals	986		954		872

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

DECEMBER 31, ~~2016~~2017

(in thousands)

Description (13)	Maturity	Interest Rate (1)		Basis PointSpreadAboveIndex (2)	LIBOR Interest Rate Floor		Industry (3)	ParAmount		Cost		FairValue
Description (12)	Maturity	Interest Rate (1)		Basis PointSpreadAboveIndex (2)	LIBOR Interest Rate Floor		Industry	ParAmount		Cost		FairValue
First Lien Floating Rate Loans (continued) — 137.5% of Net Assets
First Lien Floating Rate Loans (continued) —130.6% of Net Assets (5)
HFOTCO LLC (6)	08/19/2021	4.25	%	L+ 3.25	1.00	%	Oil and Gas	$	1,487	$	1,433	$	1,484
Navicure, Inc. (6)	11/1/2024	5.11	%	L+ 3.75	1.00	%	Health Care	$	2,000	$	1,990	$	2,000
HGIM Corp. (6)	06/18/2020	5.50	%	L+ 4.50	1.00	%	Surface Transport	1,451		1,454		1,143
Navitas Midstream Midland Basin, LLC (6)	12/13/2024	5.98	%	L+ 4.50	1.00	%	Oil and Gas	2,000		1,990		2,008
Hyland Software, Inc. (6)	7/1/2022	4.75	%	L+ 3.75	1.00	%	Electronics/Electric	2,458		2,440		2,477
NFP Corp	1/8/2024	4.85	%	L+ 3.50	1.00	%	Diversified Insurance	2,475		2,464		2,491
IBC Capital Limited (4), (6)	9/9/2021	4.98	%	L+ 3.75	1.00	%	Business Equipment and Services	997		988		989
nThrive, Inc.	10/20/2022	6.07	%	L+ 4.50	1.00	%	Health Care	1,980		1,980		1,987
Immucor, Inc. (6)	8/17/2018	5.00	%	L+ 3.75	1.25	%	Conglomerates	975		978		945
Oak Parent, Inc. (6)	10/26/2023	6.07	%	L+ 4.50	1.00	%	Clothing/Textiles	1,335		1,326		1,274
Indra Holdings Corp. (6)	5/1/2021	5.25	%	L+ 4.25	1.00	%	Clothing/Textiles	1,185		1,178		797
Omnitracs, LLC	11/25/2020	5.45	%	L+ 3.75	1.00	%	Electronics/Electric	982		971		992
Infoblox Inc. (6)	11/7/2023	6.00	%	L+ 5.00	1.00	%	Electronics/Electric	1,429		1,401		1,424
Onex Carestream Finance LP	6/7/2019	5.69	%	L+ 4.00	1.00	%	Health Care	771		772		773
Informatica Corporation (6)	8/5/2022	4.50	%	L+ 3.50	1.00	%	Electronics/Electric	1,975		1,971		1,970
Optiv Inc.	2/1/2024	4.63	%	L+ 3.25	1.00	%	Business Equipment and Services	1,034		1,032		968
Information Resources, Inc. (6), (8)	12/20/2023	5.25	%	L+ 4.25	1.00	%	Business Equipment and Services	2,431		2,419		2,453
PAE Holding Corporation	10/20/2022	7.12	%	L+ 5.50	1.00	%	Aerospace and Defense	543		534		547
Information Resources, Inc. (6)	9/30/2020	5.56	%	L+ 3.75	1.00	%	Business Equipment and Services	1,929		1,937		1,942
Patterson Medical Supply, Inc. (6)	8/29/2022	6.23	%	L+ 4.75	1.00	%	Health Care	1,997		1,975		1,918
Inmar, Inc. (6)	1/27/2021	4.50	%	L+ 3.50	1.00	%	Business Equipment and Services	2,691		2,673		2,677
PetSmart, Inc.	3/11/2022	4.57	%	L+ 3.00	1.00	%	Retailers (except Food and Drug)	483		481		385
Ion Media Networks, Inc. (6)	12/18/2020	4.50	%	L+ 3.50	1.00	%	Broadcast Radio and Television	1,897		1,905		1,920
Plaskolite, LLC (6)	11/3/2022	5.69	%	L+ 4.00	1.00	%	Chemical/Plastics	1,397		1,392		1,408
IPC Corp. (6)	8/6/2021	5.50	%	L+ 4.50	1.00	%	Electronics/Electric	1,474		1,468		1,421
Plaze, Inc.	7/31/2022	5.19	%	L+ 3.50	1.00	%	Chemical/Plastics	818		817		826
Jaguar Holding Company I (6)	8/18/2022	4.25	%	L+ 3.25	1.00	%	Drugs	1,478		1,472		1,496
Pregis Holding I Corporation	5/20/2021	5.19	%	L+ 3.50	1.00	%	Chemical/Plastics	1,344		1,330		1,350
Jazz Acquisition, Inc. (6)	6/19/2021	4.50	%	L+ 3.50	1.00	%	Aerospace and Defense	1,952		1,955		1,841
Presidio, Inc.	2/2/2022	4.59	%	L+ 3.25	1.00	%	Electronics/Electric	1,050		1,050		1,055
Jo-Ann Stores, LLC (6)	10/20/2023	6.26	%	L+ 5.00	1.00	%	Retailers (except food & drug)	500		490		505
PrimeLine Utility Services LLC	11/14/2022	6.88	%	L+ 5.50	1.00	%	Utilities	1,095		1,088		1,102
Kronos Acquisition Intermediate Inc. (4), (6)	8/26/2022	6.00	%	L+ 5.00	1.00	%	Cosmetics/Toiletries	988		967		999
Project Alpha Intermediate Holding, Inc.	4/26/2024	5.04	%	L+ 3.50	1.00	%	Technology	1,756		1,748		1,721
Kronos Incorporated (6), (8)	11/1/2023	5.00	%	L+ 4.00	1.00	%	Cosmetics/Toiletries	2,300		2,292		2,332
Renaissance Learning, Inc.	4/9/2021	5.44	%	L+ 3.75	1.00	%	Electronics/Electric	1,911		1,911		1,926
Landslide Holdings, Inc. (6)	9/27/2022	5.50	%	L+ 4.50	1.00	%	Electronics/Electric	648		641		657
Serta Simmons Bedding, LLC	11/8/2023	4.84	%	L+ 3.50	1.00	%	Home Furnishings	1,985		1,977		1,827
Learning Care Group (US) No. 2 Inc. (6)	5/5/2021	5.00	%	L+ 4.00	1.00	%	Business Equipment and Services	987		987		997
SMS System Maintenance Services, Inc.	10/30/2023	6.57	%	L+ 5.00	1.00	%	Business Equipment and Services	1,980		1,971		1,703
Liberty Cablevision of Puerto Rico LLC (6)	1/7/2022	4.50	%	L+ 3.50	1.00	%	Cable and Satellite Television	1,000		993		996
Solera, LLC (3)	3/3/2023	4.82	%	L+ 3.25	1.00	%	Electronics/Electric	939		928		946
Life Time Fitness, Inc. (6)	6/10/2022	4.25	%	L+ 3.25	1.00	%	Leisure Goods/Activities/Movies	865		859		872
StandardAero Aviation Holdings, Inc.	7/7/2022	5.32	%	L+ 3.75	1.00	%	Aerospace and Defense	1,154		1,149		1,165
Manitowoc Foodservice, Inc. (4), (6)	3/3/2023	5.75	%	L+ 4.75	1.00	%	Industrial Equipment	635		623		646
Sterigenics-Nordion Holdings, LLC	5/15/2022	4.57	%	L+ 3.00	1.00	%	Health Care	887		881		887
McGraw-Hill Global Education Holdings, LLC (6)	5/4/2022	5.00	%	L+ 4.00	1.00	%	Publishing	995		991		998
Strategic Partners Acquisition Corp. (6)	6/30/2023	6.07	%	L+ 4.50	1.00	%	Clothing/Textiles	1,910		1,910		1,922
Mediware Information Systems, Inc. (6)	9/28/2023	5.75	%	L+ 4.75	1.00	%	Electronics/Electric	499		494		503
Summit Midstream Partners Holdings, LLC (3)	5/13/2022	7.57	%	L+ 6.00	1.00	%	Oil and Gas	563		558		574
Meter Readings Holdings, LLC (6)	8/29/2023	6.75	%	L+ 5.75	1.00	%	Electronics/Electric	665		655		679
Syniverse Holdings, Inc	4/23/2019	4.57	%	L+ 3.00	1.00	%	Telecommunications	1,464		1,451		1,442
Mister Car Wash Holdings, Inc. (6), (8)	8/20/2021	5.25	%	L+ 4.25	1.00	%	Retailers (except food & drug)	125		124		126
TCH-2 Holdings, LLC	5/6/2021	5.57	%	L+ 4.00	1.00	%	Electronics/Electric	538		525		542
Mister Car Wash Holdings, Inc. (6), (8)	8/20/2021	5.25	%	L+ 4.25	1.00	%	Retailers (except food & drug)	623		619		626
The Edelman Financial Center, LLC	11/11/2024	5.65	%	L+ 4.25	1.00	%	Banking, Finance & Insurance	1,538		1,535		1,559
Mitchell International, Inc. (6)	10/13/2020	4.50	%	L+ 3.50	1.00	%	Electronics/Electric	2,377		2,384		2,384
Thermasys Corp.	5/3/2019	5.35	%	L+ 4.00	1.25	%	Industrial Equipment	429		429		405
Moneygram International, Inc. (4), (6)	3/27/2020	4.25	%	L+ 3.25	1.00	%	Business Equipment and Services	583		561		578
TIBCO Software Inc	12/4/2020	5.07	%	L+ 3.50	1.00	%	Business Equipment and Services	1,486		1,497		1,492
MPH Acquisition Holdings LLC (6)	6/7/2023	5.00	%	L+ 4.00	1.00	%	Health Care	464		462		473
Traverse Midstream Partners LLC	9/21/2024	5.85	%	L+ 4.00	1.00	%	Oil and Gas	1,495		1,488		1,517
National Financial Partners Corp. (6)	7/1/2020	6.25	%	L+ 3.50	1.00	%	Diversified Insurance	1,943		1,951		1,963
Tricorbraun Holdings, Inc.	11/30/2023	5.39	%	L+ 3.75	1.00	%	Containers and Glass Products	900		916		899
NFP Corp. (6), (8)	1/8/2024	4.50	%	L+ 3.50	1.00	%	Insurance	2,500		2,488		2,526
Tricorbraun Holdings, Inc.	11/30/2023	5.44	%	L+ 3.75	—	%	Containers and Glass Products	91		91		91
NVA Holdings, Inc. (6)	8/14/2021	5.50	%	L+ 4.50	1.00	%	Health Care	394		393		396
Truck Hero, Inc.	4/22/2024	5.64	%	L+ 4.00	1.00	%	Automotive	2,633		2,612		2,637
Oak Parent, Inc. (6)	10/26/2023	5.50	%	L+ 4.50	1.00	%	Clothing/Textiles	1,367		1,357		1,375
Turbocombustor Technology, Inc. (6)	12/2/2020	5.83	%	L+ 4.50	1.00	%	Aerospace and Defense	3,360		3,346		3,310
U.S. Renal Care, Inc.	12/30/2022	5.94	%	L+ 4.25	1.00	%	Health Care	490		486		484
University Support Services LLC	7/6/2022	5.82	%	L+ 4.25	1.00	%	Health Care	1,133		1,133		1,148
Vantage Specialty Chemicals, Inc.	10/28/2024	5.37	%	L+ 4.00	1.00	%	Chemical/Plastics	671		668		677
Veritas US Inc. (3)	1/27/2023	6.19	%	L+ 4.50	1.00	%	Electronics/Electric	1,983		1,944		1,990

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

DECEMBER 31, ~~2016~~2017

(in thousands)

Description (13)	Maturity	Interest Rate (1)		Basis PointSpreadAboveIndex (2)	LIBOR Interest Rate Floor		Industry (3)	ParAmount		Cost			FairValue
Description (12)	Maturity	Interest Rate (1)		Basis PointSpreadAboveIndex (2)	LIBOR Interest Rate Floor		Industry	ParAmount		Cost			FairValue
First Lien Floating Rate Loans (continued) — 137.5% of Net Assets
First Lien Floating Rate Loans (continued) —130.6% of Net Assets (5)
Omnitracs, LLC (6)	11/25/2020	4.75	%	L+ 3.75	1.00	%	Electronics/Electric	$	992	$	977		$	1,002
VF Holding Corp.	6/30/2023	4.82	%	L+ 3.25	1.00	%	Insurance	$	1,039	$	1,035		$	1,048
Onex Carestream Finance LP (6)	6/7/2019	5.00	%	L+ 4.00	1.00	%	Electronics/Electric	1,610		1,613			1,568
WP CPP Holdings, LLC	12/28/2019	4.88	%	L+ 3.50	1.00	%	Aerospace and Defense	2,383		2,382			2,388
Opal Acquisition, Inc. (6)	11/27/2020	5.00	%	L+ 4.00	1.00	%	Health Care	2,899		2,885			2,776
YI, LLC (6)	11/7/2024	5.69	%	L+ 4.00	1.00	%	Health Care	1,423		1,416			1,421
Ortho-Clinical Diagnostics Holdings Luxembourg S.À R.L. (4), (6)	6/30/2021	4.75	%	L+ 3.75	1.00	%	Health Care	2,445		2,392			2,432
YI, LLC (6) (9)	11/7/2024	5.00	%	L+ 4.00	1.00	%	Health Care	553		(3		)	(1		)
PAE Holding Corporation (6)	10/20/2022	6.50	%	L+ 5.50	1.00	%	Aerospace and Defense	571		560			577
Total First Lien Floating Rate Loans								$	174,990	$	173,374		$	170,947
Peabody Energy Corporation (4), (6), (10)	9/24/2020	4.25	%	L+ 3.25	1.00	%	Nonferrous Metals/Minerals	771		647			755
Second Lien Floating Rate Loans —11% of Net Assets (5)
PetSmart, Inc. (6)	3/11/2022	4.00	%	L+ 3.00	1.00	%	Retailers (except food & drug)	488		485			490
Advantage Sales & Marketing Inc.	7/25/2022	7.88	%	L+ 6.50	1.00	%	Business Equipment and Services	$	1,000	$	995		$	940
Plaskolite, LLC (6)	11/3/2022	5.75	%	L+ 4.75	1.00	%	Chemical/Plastics	920		914			924
Albany Molecular Research, Inc. (7)	8/30/2025	8.57	%	L+ 7.00	1.00	%	Health Care	3,002		3,055			2,961
Plaze, Inc. (6)	7/31/2022	5.25	%	L+ 4.25	1.00	%	Chemical/Plastics	824		823			828
Almonde Inc (3)	6/13/2025	8.73	%	L+ 7.25	1.00	%	Technology	609		603			612
PODS, LLC (6)	2/2/2022	4.50	%	L+ 3.50	1.00	%	Surface Transport	992		982			1,004
Anchor Glass Container Corporation	12/7/2024	9.18	%	L+ 7.75	1.00	%	Containers and Glass Products	500		496			507
Power Buyer, LLC (6)	5/6/2020	4.25	%	L+ 3.25	1.00	%	Utilities	993		992			996
Applied Systems, Inc.	9/19/2025	8.69	%	L+ 7.00	1.00	%	Technology	344		344			357
Presidio, Inc. (6)	2/2/2022	5.25	%	L+ 4.25	1.00	%	Electronics/Electric	1,281		1,281			1,297
Asurion, LLC	8/4/2025	7.57	%	L+ 6.00	—	%	Diversified Insurance	567		567			583
Press Ganey Holdings, Inc. (6)	10/23/2023	4.25	%	L+ 3.25	1.00	%	Health Care	400		398			403
BJ's Wholesale Club, Inc.	2/3/2025	8.95	%	L+ 7.50	1.00	%	Food/Drug Retailers	845		825			827
PrimeLine Utility Services LLC (6)	11/14/2022	6.50	%	L+ 5.50	1.00	%	Utilities	1,107		1,098			1,111
CH Hold Corp. (6)	2/3/2025	8.82	%	L+ 7.25	1.00	%	Automotive	149		148			152
ProAmpac PG Borrower LLC (6)	11/20/2023	5.00	%	L+ 4.00	1.00	%	Containers and Glass Products	450		446			456
Checkout Holding Corp.	4/11/2022	8.32	%	L+ 6.75	1.00	%	Business Equipment and Services	1,000		1,001			415
Quest Software US Holdings Inc. (6)	10/31/2022	7.00	%	L+ 6.00	1.00	%	Electronics/Electric	2,000		1,986			2,030
Del Monte Foods, Inc. (3)	8/18/2021	9.06	%	L+ 7.25	1.00	%	Food Products	1,500		1,499			703
Quikrete Holdings, Inc. (6)	11/15/2023	4.00	%	L+ 3.25	0.75	%	Building and Development	1,000		995			1,011
Hyland Software Inc.	7/7/2025	8.57	%	L+ 7.00	0.75	%	Electronics/Electric	298		297			306
Rackspace Hosting, Inc. (6)	11/3/2023	4.50	%	L+ 3.50	1.00	%	Electronics/Electric	500		500			507
Jazz Acquisition, Inc.	6/19/2022	8.44	%	L+ 6.75	1.00	%	Aerospace and Defense	1,250		1,254			1,182
Ravago Holdings America, Inc. (6)	7/13/2023	5.00	%	L+ 4.00	1.00	%	Chemical/Plastics	498		493			504
Navicure, Inc. (6)	10/31/2025	8.86	%	L+ 7.50	1.00	%	Health Care	500		495			504
Renaissance Learning, Inc. (6)	4/9/2021	4.50	%	L+ 3.50	1.00	%	Electronics/Electric	1,945		1,944			1,954
NVA Holdings, Inc.	8/14/2022	8.69	%	L+ 7.00	1.00	%	Health Care	1,500		1,506			1,512
RGIS Services, LLC (6)	10/18/2017	5.50	%	L+ 4.25	1.25	%	Business Equipment and Services	1,506		1,504			1,393
Optiv Inc.	1/31/2025	8.63	%	L+ 7.25	1.00	%	Business Equipment and Services	444		442			401
Riverbed Technology, Inc. (6)	4/25/2022	4.25	%	L+ 3.25	1.00	%	Electronics/Electric	1,975		1,975			1,992
ProAmpac PG Borrower LLC	11/18/2024	9.94	%	L+ 8.50	1.00	%	Containers and Glass Products	500		494			510
Road Infrastructure Investment Holdings, Inc. (6)	6/13/2023	5.00	%	L+ 4.00	1.00	%	Chemical/Plastics	800		798			808
Ranpak Corp. (6)	10/3/2022	8.75	%	L+ 7.25	1.00	%	Containers and Glass Products	840		840			836
Scientific Games International, Inc. (4), (6)	10/1/2021	6.00	%	L+ 5.00	1.00	%	Lodging and Casinos	978		971			991
Solenis International, L.P.	7/31/2022	8.23	%	L+ 6.75	1.00	%	Chemical/Plastics	500		499			480
Sears Roebuck Acceptance Corp. (4), (6)	6/30/2018	5.50	%	L+ 4.50	1.00	%	Retailers (except food & drug)	977		970			940
Vantage Specialty Chemicals, Inc. (6)	10/27/2025	9.62	%	L+ 8.25	1.00	%	Chemical/Plastics	125		123			123
Securus Technologies Holdings, Inc. (6)	4/30/2020	4.75	%	L+ 3.50	1.25	%	Telecommunication	1,866		1,850			1,859
WP CPP Holdings, LLC	4/30/2021	9.13	%	L+ 7.75	1.00	%	Aerospace and Defense	493		498			490
Serta Simmons Bedding, LLC (6)	11/8/2023	4.50	%	L+ 3.50	1.00	%	Home furnishings	2,000		1,990			2,025
Total Second Lien Floating Rate Loans								$	15,966	$	15,981		$	14,401
Shearer’s Foods, LLC (6)	6/30/2021	5.25	%	L+ 4.25	1.00	%	Food products	495		491			497
CLO Equity —33.5% of Net Assets
Solera, LLC (4), (6)	3/3/2023	5.75	%	L+ 4.75	1.00	%	Electronics/Electric	496		483			504
AMMC CLO 21, Subordinated Notes (3) (4) (6)	11/2/2030	12.22	%					$	2,750	$	2,548		$	2,527
Sterigenics-Nordion Holdings, LLC (6)	5/16/2022	4.25	%	L+ 3.25	1.00	%	Health Care	895		888			902
Apidos CLO XIV, Income Notes (3) (4) (6)	4/15/2025	—	%					5,900		1,342			295
STS Operating, Inc. (6)	2/12/2021	4.75	%	L+ 3.75	1.00	%	Industrial Equipment	1,906		1,914			1,849
Apidos CLO XVIII, Income Notes (3) (4) (6)	7/22/2026	6.71	%					2,500		1,696			1,439
Surgery Center Holdings, Inc. (4), (6)	11/3/2020	4.75	%	L+ 3.75	1.00	%	Health Care	1,960		1,954			1,980
Apidos CLO XXVII, Income Notes (3) (4) (6)	7/17/2030	10.23	%					5,000		4,630			4,446
Syniverse Holdings, Inc. (6)	4/23/2019	4.00	%	L+ 3.00	1.00	%	Telecommunication	1,466		1,444			1,288
Ares XXIX CLO Ltd., Subordinated Notes (3) (4) (6)	4/17/2026	6.68	%					4,750		3,237			2,305
Avery Point II CLO, Income Notes (3) (4) (6)	7/17/2025	7.53	%					3,200		1,669			373
Babson 2015-1, Income Notes (3) (4) (6)	4/20/2027	14.58	%					2,500		1,844			1,359
Betony CLO, Ltd., Subordinated Notes (3) (4) (6)	4/15/2027	5.69	%					2,500		1,785			972
Carlyle Global Market Strategies CLO 2015-3, LTD., Subordinated Notes (3) (4) (6)	7/28/2028	10.54	%					3,000		2,253			2,308

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

DECEMBER 31, ~~2016~~2017

(in thousands)

Description (13)	Maturity	Interest Rate (1)		Basis PointSpreadAboveIndex (2)	LIBOR Interest Rate Floor		Industry (3)	ParAmount		Cost		FairValue
Description (12)	Maturity	Interest Rate (1)		Basis PointSpreadAboveIndex (2)	LIBOR Interest Rate Floor		Industry	ParAmount		Cost		FairValue
First Lien Floating Rate Loans (continued) — 137.5% of Net Assets
CLO Equity (continued) —33.5% of Net Assets
TCH-2 Holdings, LLC (6)	5/6/2021	5.50	%	L+ 4.50	1.00	%	Electronics/Electric	$	543	$	527	$	545
Carlyle Global Market Strategies CLO 2017-3, LTD., Subordinated Notes (3) (4) (6)	7/20/2029	9.76	%					$	2,000	$	1,889	$	1,860
Thermasys Corp. (6)	5/3/2019	5.25	%	L+ 4.00	1.25	%	Industrial Equipment	441		442		380
Cent CLO 18 Limited, Subordinated Notes (3) (4) (6)	7/23/2025	15.53	%					4,675		3,133		2,478
Travelport Finance (Luxembourg) S.à r.l. (4), (6)	9/2/2021	5.00	%	L+ 4.00	1.00	%	Business Equipment and Services	1,918		1,902		1,940
Cent CLO 19 Limited, Subordinated Notes (3) (4) (6)	10/29/2025	14.40	%					2,750		2,042		1,622
Turbocombustor Technology, Inc. (6)	12/2/2020	5.50	%	L+ 4.50	1.00	%	Aerospace and Defense	3,395		3,376		3,106
Dryden 30 Senior Loan Fund, Subordinated Notes (3) (4) (6)	11/15/2028	20.74	%					2,500		1,379		1,729
U.S. Renal Care, Inc. (6)	12/30/2022	5.25	%	L+ 4.25	1.00	%	Health Care	495		491		466
Dryden 30A Senior Loan Fund, Subordinated Notes (3) (4) (6)	11/15/2028	19.86	%					250		126		173
USI, Inc. (6)	12/27/2019	4.25	%	L+ 3.25	1.00	%	Diversified Insurance	1,819		1,828		1,832
Dryden 38 Senior Loan Fund, Subordinated Notes (3) (4) (6)	7/15/2027	9.14	%					3,000		2,318		2,219
VF Holding Corp. (6)	6/30/2023	4.25	%	L+ 3.25	1.00	%	Electronics/Electric	998		993		1,003
Galaxy XVI CLO, Ltd., Subordinated Notes (3) (4) (6)	11/16/2025	9.08	%					2,750		1,717		1,238
Weight Watchers International, Inc. (4), (6)	4/2/2020	4.07	%	L+ 3.25	0.75	%	Food Products	987		845		823
Highbridge Loan Management 2013-2, Ltd., Subordinated Notes (3) (4) (6)	10/20/2029	14.93	%					1,401		813		799
William Morris Endeavor Entertainment , LLC (6)	5/6/2021	5.25	%	L+ 4.25	1.00	%	Broadcast Radio and Television	1,945		1,943		1,969
Magnetite VIII, Limited, Subordinated Notes (3) (4) (6)	4/15/2026	7.90	%					3,000		2,140		1,710
WP CPP Holdings, LLC (6)	12/28/2019	4.50	%	L+ 3.50	1.00	%	Aerospace and Defense	2,409		2,406		2,360
Neuberger Berman CLO XV, Ltd., Subordinated Notes (3) (4) (6)	10/15/2029	16.20	%					3,410		1,898		1,794
Total First Lien Floating Rate Loans								$	190,535	$	189,009	$	188,098
Octagon Investment Partners XX, Ltd., Subordinated Notes (3) (4) (6)	8/12/2026	7.73	%					2,500		1,711		1,213
Second Lien Floating Rate Loans — 11.3% of Net Assets
OZLM XIX, Subordinated Notes (3) (4) (6)	11/22/2030	11.68	%					1,500		1,364		1,351
Advantage Sales & Marketing Inc. (6)	7/25/2022	7.50	%	L+ 6.50	1.00	%	Business Equipment and Services	$	1,000	$	995	$	979
OZLM XXI, Subordinated Notes (3) (4) (6) (7)	1/20/2031	11.47	%					1,750		1,584		1,584
Ameriforge Group Inc. (7), (10)	12/21/2020	8.75	%	L+ 7.50	1.25	%	Oil and Gas	500		444		79
Venture XVIII CLO, Subordinated Notes (3) (4) (6)	10/15/2029	15.31	%					1,750		1,223		1,205
Anchor Glass Container Corporation (6)	12/7/2024	8.75	%	L+ 7.75	1.00	%	Containers and Glass Products	500		495		511
Voya 2017-2A, Subordinated Notes (3) (4) (6)	6/7/2030	9.91	%					2,000		1,877		1,847
Applied Systems, Inc.	1/24/2022	7.50	%	L+ 6.50	1.00	%	Electronics/Electric	970		965		982
Voya CLO 2017-4, Subordinated Notes (3) (4) (6)	10/15/2030	10.95	%					2,270		2,245		2,175
Asurion, LLC (6)	3/3/2021	8.50	%	L+ 7.50	1.00	%	Diversified Insurance	1,000		991		1,019
Wind River CLO 2014-1, Ltd. (3) (4) (6)	4/18/2026	9.03	%					5,050		3,410		2,807
Checkout Holding Corp. (6)	4/11/2022	7.75	%	L+ 6.75	1.00	%	Business Equipment and Services	1,000		1,002		720
Total CLO Equity								$	74,656	$	51,873	$	43,828
Del Monte Foods, Inc. (4), (6)	8/18/2021	8.45	%	L+ 7.25	1.00	%	Food Products	1,500		1,499		1,154
Common Equity —0% of Net Assets
Jazz Acquisition, Inc. (6)	6/19/2022	7.75	%	L+ 6.75	1.00	%	Aerospace and Defense	1,250		1,254		1,061
Ameriforge Group Inc., Common Equity (1,570 shares) (6), (11),								$	2	$	—	$	64
Jonah Energy LLC (6), (7)	5/12/2021	7.50	%	L+ 6.50	1.00	%	Oil and Gas	500		495		475
Total Common Equity								$	2	$	—	$	64
Mitchell International, Inc. (6)	10/11/2021	8.50	%	L+ 7.50	1.00	%	Electronics/Electric	750		710		746
Warrants —0.0% of Net Assets
NVA Holdings, Inc. (6)	8/14/2022	8.00	%	L+ 7.00	1.00	%	Health Care	1,500		1,507		1,506
Ameriforge Group Inc., Warrants (4,984 shares) (6), (11)								$	5	$	—	$	—
ProAmpac PG Borrower LLC (6)	11/18/2024	9.50	%	L+ 8.50	1.00	%	Containers and Glass Products	500		493		503
Total Warrants								$	5	$	—	$	—
Ranpak Corp. (6)	10/3/2022	8.25	%	L+ 7.25	1.00	%	Containers and Glass Products	1,375		1,374		1,341
Total Non-Control/Non-Affiliate Investments —175.2% of Net Assets (8)								$	265,619	$	241,228	$	229,240
Sedgwick Claims Management Services, Inc. (6)	2/28/2022	6.75	%	L+ 5.75	1.00	%	Diversified Insurance	2,500		2,417		2,503
Liabilities in Excess of Other Assets — (75.2%) of Net Assets												(98,384		)
Solenis International, L.P. (6)	7/31/2022	7.75	%	L+ 6.75	1.00	%	Chemical/Plastics	500		498		493
Net Assets — 100.0%												$	130,856
U.S. Renal Care, Inc. (6)	12/29/2023	9.00	%	L+ 8.00	1.00	%	Health Care	1,000		987		890
WP CPP Holdings, LLC (6)	4/30/2021	8.75	%	L+ 7.75	1.00	%	Aerospace and Defense	492		500		467
Total Second Lien Floating Rate Loans								$	16,837	$	16,626	$	15,429
CLO Equity — 30.2% of Net Assets
Apidos CLO XIV, Income Notes (4), (5), (7)	4/15/2025	11.02	%					$	5,900	$	4,056	$	3,480
Apidos CLO XVIII, Income Notes (4), (5), (7)	7/22/2026	10.08	%					2,500		1,769		1,450
Ares XXIX CLO Ltd., Subordinated Notes (4), (5), (7)	4/17/2026	5.81	%					4,750		3,508		2,605
Avery Point II CLO, Limited, Income Notes (4), (5), (7)	7/17/2025	—	%					3,200		1,903		1,101

(1) For each debt investment we have provided the weighted-average interest rate in effect as of December 31, 2017. For each CLO investment we have provided the yield as of December 31, 2017 determined using the effective interest method that will be applied to the current amortized cost of the investment in the following quarter. See ~~notes~~“Note 2 - Significant Accounting Policies” to the consolidated financial statements regarding the recognition of investment income on CLOs.


(2)	Floating rate debt investments typically accrue interest at a predetermined spread relative to an index, typically the London Interbank Offered Rate (“LIBOR” or “L”) or the prime index rate (“PRIME” or “P”), and reset monthly, quarterly or semi-annually. These instruments may be subject to a LIBOR or PRIME rate floor.


(3)	Investments that are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. As of December 31, 2017, qualifying assets represented 75% of total assets at fair value.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

DECEMBER 31, ~~2016~~2017

(in thousands)

Description (13)	Maturity	Interest Rate (1)		Basis PointSpreadAboveIndex (2)	LIBOR Interest Rate Floor	Industry (3)	ParAmount		Cost		FairValue
CLO Equity (continued) — 30.2% of Net Assets
Babson 2015-1, Income Notes (4), (5), (7)	4/20/2027	16.74	%				$	2,500	$	1,920	$	1,811
Betony CLO, Ltd., Subordinated Notes (4), (5), (7)	4/15/2027	1.79	%				2,500		1,903		1,278
Blue Hill CLO, Ltd., Subordinated Notes (4), (5), (7)	1/15/2026	—	%				5,400		3,910		1,636
Blue Hill CLO, Ltd., Subordinated Fee Notes (4), (5), (7)	1/15/2026	—	%				100		63		58
Carlyle Global Market Strategies CLO 2015-3, Ltd., Subordinated Notes (4), (5), (7)	7/28/2028	20.55	%				3,000		2,307		2,456
Cent CLO 18 Limited, Subordinated Notes (4), (5), (7)	7/23/2025	19.36	%				4,675		3,212		2,801
Cent CLO 19 Limited, Subordinated Notes (4), (5), (7)	10/29/2025	18.20	%				2,750		2,012		1,677
Dryden 30 Senior Loan Fund, Subordinated Notes (4), (5), (7)	11/15/2025	22.98	%				2,500		1,440		1,368
Dryden 31 Senior Loan Fund, Subordinated Notes (4), (5), (7)	4/18/2026	15.60	%				5,250		3,405		2,954
Dryden 38 Senior Loan Fund, Subordinated Notes (4), (5), (7), (8)	7/15/2027	17.80	%				3,000		2,423		2,456
Galaxy XVI CLO, Ltd., Subordinated Notes (4), (5), (7)	11/17/2025	4.28	%				2,750		1,893		1,479
Halcyon Loan Advisors Funding 2014-1 Ltd., Subordinated Notes (4), (5), (7)	4/18/2026	2.28	%				3,750		2,680		1,466
Highbridge Loan Management 2013-2, Ltd., Subordinated Notes (4), (5), (7)	10/20/2024	14.24	%				1,000		660		636
Magnetite VIII, Limited, Subordinated Notes (4), (5), (7)	4/15/2026	13.95	%				3,000		2,334		2,140
Neuberger Berman CLO XV, Ltd., Subordinated Notes (4), (5), (7)	10/15/2025	15.43	%				3,410		2,056		1,937
Octagon Investment Partners XIV, Ltd., Income Notes (4), (5), (7)	1/15/2024	0.61	%				5,500		3,328		1,805
Octagon Investment Partners XX, Ltd., Subordinated Notes (4), (5), (7)	8/12/2026	5.64	%				2,500		1,850		1,383
THL Credit Wind River 2014-1 CLO Ltd., Subordinated Notes (4), (5), (7)	4/18/2026	17.49	%				5,050		3,698		3,352
Total CLO Equity							$	74,985	$	52,330	$	41,329
Common Equity — 0.0% of Net Assets
New Millennium Holdco, Inc. (9,446 shares) (6), (7), (11)						Health Care	$	—	$	—	$	16
Total Common Equity							$	—	$	—	$	16
Total Non-Control/Non-Affiliate Investments (12) — 179.0% of net assets							$	282,357	$	257,965	$	244,872
Liabilities in Excess of Other Assets — (79.0%)											(108,083		)
Net Assets — 100.0%											$	136,789


(4)	These securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions that are exempt from registration, normally to qualified institutional buyers.

(15) ~~For~~All ~~each~~first ~~debt~~lien ~~investment~~floating werate ~~have~~loans ~~provided~~and ~~the~~second ~~weighted-average~~lien ~~interest~~floating rate inloans ~~effect~~are asheld ofat ~~December~~ACSF 31Funding I, ~~2016.~~LLC ~~For~~(“ACSF ~~each~~Funding”), ~~CLO~~a ~~investment~~wholly weowned ~~have~~special ~~provided~~purpose ~~the~~financing ~~accounting~~vehicle, ~~yield~~and asare ofpledged ~~December~~as ~~31,~~collateral ~~2016~~for ~~determined~~a ~~using~~secured ~~the~~revolving ~~effective~~credit ~~interest~~facility ~~method.~~(see ~~See~~ “Note 27 to- ~~the consolidated financial statements regarding the recognition of investment income on CLOs~~Debt”).

(26) ~~Floating~~Fair ~~rate~~value ~~debt~~was ~~investments~~determined ~~typically~~using ~~accrue~~significant ~~interest~~unobservable atinputs ~~a predetermined spread relative to an index, typically LIBOR or PRIME,~~ and ~~reset~~are ~~monthly,~~classified ~~quarterly~~as orLevel ~~semi-annually.~~3 ~~These~~in ~~instruments~~the ~~may~~fair bevalue ~~subject to a LIBOR or PRIME rate floor~~hierarchy.

(37) ~~The~~All ~~industry~~or ~~groupings~~a asportion of ~~December~~this ~~31,~~position ~~2016~~has ~~above~~not ~~have~~settled ~~been~~as ~~reclassified~~of toDecember ~~conform~~31, ~~with current period presentation~~2017.

~~See~~(8) ~~notes~~Net toestimated ~~consolidated~~unrealized ~~financial~~loss ~~statements~~for federal income tax purposes was $14,148 as of December 31, 2017 based on a tax cost of $243,388. Estimated aggregate gross unrealized loss for federal income tax purposes as of December 31, 2017 is $16,155; estimated aggregate gross unrealized gain for federal income tax purposes as of December 31, 2017 was $2,007.

(9)

As of December 31, 2017, the Company had the following commitments to fund various delayed draw SFRLs. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and there can be no assurance that such conditions will be satisfied. See Note 10 to the consolidated financial statements for further information on delayed draw loan commitments.



(in thousands) Portfolio Company	Total revolving and delayed draw loan commitments		Less: drawn commitments		Total undrawn commitments
YI, LLC	$	553	$	—	$	553
	$	553	$	—	$	553


(10)	Investment was placed on non-accrual status as of December 31, 2017.


(11)	Non-income producing.


(12)	All of the Company’s portfolio company investments, which as of December 31, 2017 represented 175.2% of the Company’s net assets or 97.7% of the Company’s total assets, were subject to legal restrictions on sales.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

DECEMBER 31, 2016

(in thousands)

(4) Investments that are not “qualifying assets” under Section 55(a) of the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying assets unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. As of December 31, 2016, qualifying assets represented 76% of total assets at fair value.

(5) These securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions that are exempt from registration, normally to qualified institutional buyers.

(6) Assets are held at ACSF Funding and are pledged as collateral for a secured revolving credit facility (see Note 7).

(7) Fair value was determined using significant unobservable inputs and are classified as Level 3 in the fair value hierarchy.

(8) All or a portion of this position has not settled as of December 31, 2016.

(9) Debt investment has an unfunded loan commitment of $81.5.

(10) Investment has been placed on non-accrual status as of December 31, 2016.

(11) Common equity is non-income producing.

(12) Net estimated unrealized loss for federal income tax purposes is $14,993 as of December 31, 2016 based on a tax cost of $259,864. Estimated aggregate gross unrealized loss for federal income tax purposes as of December 31, 2016 is $17,211; estimated aggregate gross unrealized gain for federal income tax purposes as of December 31, 2016 is $2,218.

(13) All of the Company’s portfolio company investments, which as of December 31, 2016 represented 179.0% of the Company’s net assets or 95.2% of the Company’s total assets, are subject to legal restrictions on sales.

See notes to consolidated financial statements.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example with the word “million” or otherwise)

Note 1. Organization

American Capital Senior Floating, Ltd. (which is referred to as “ACSF”, “we”, “us” and “our”) was organized in February 2013 as a Maryland corporation and commenced operations on October 15, 2013. We are structured as an externally managed, diversified closed-end investment management company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended and the rules and regulations promulgated thereunder (the “1940 Act”) and to be taxed as a regulated investment company (“RIC”), as defined in Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

In November 2013, we formed a wholly owned special purpose financing vehicle, ACSF Funding I, LLC, a Delaware limited liability company (“ACSF Funding”).

On January 3, 2017, Ivy Hill Asset Management, L.P. (“IHAM” or our “Manager”), a wholly owned portfolio company of Ares Capital Corporation (NASDAQ: ARCC) (“Ares Capital”) was appointed as our new investment adviser pursuant to the Interim Management Agreement (as defined below), and on such date, we entered into the Interim Management Agreement. On May 19, 2017, a new management agreement with IHAM was approved by our stockholders (the “Management Agreement”). Ares Capital is externally managed by Ares Capital Management LLC, a subsidiary of Ares Management, L.P. (NYSE: ARES) (“Ares Management”), a publicly traded, leading global alternative asset manager, pursuant to an investment advisory and management agreement. Our common stock is listed on the NASDAQ Global Select Market, where it trades under the symbol “ACSF.” IHAM is a U.S. Securities and Exchange Commission (the “SEC”) -registered investment adviser that was registered under the Investment Advisers Act of 1940 on March 30, 2012.

See Note 11 for a subsequent event regarding the approval of a Plan of Complete Liquidation and Dissolution of ACSF by ACSF’s board of directors.

Investment Objective

Note 2. Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. We are an investment company following accounting and reporting guidance in Accounting Standards Codification (“ASC”) 946. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. The Company has reclassified certain prior period amounts to conform to the current year presentation. In the opinion of management, all adjustments and reclassifications which are of a normal recurring nature and considered necessary for the fair presentation of the financial statements for the interim period have been included. The current period’s results of operations are not necessarily indicative of results that ultimately may be achieved for the fiscal year ending December 31, ~~2017~~2018. The unaudited interim consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, ~~2016~~2017.

The consolidated financial statements include our accounts and those of our wholly owned subsidiary, ACSF Funding. Intercompany accounts and transactions have been eliminated in consolidation. The accounts of ACSF Funding are prepared for the same reporting period as ours using consistent accounting policies. Subsequent events are evaluated and disclosed as appropriate for events occurring through the date the consolidated financial statements are issued.

~~Use of Estimates~~19

The preparation of our financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of income and expenses during the reported period. Changes in the economic environment, financial markets, and any other parameters used in determining such estimates could cause actual results to differ.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (~~Continued~~continued)

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example, with the ~~words~~word “million” or otherwise)

the same reporting period as ours using consistent accounting policies. Subsequent events are evaluated and disclosed as appropriate for events occurring through the date the consolidated financial statements are issued.

Use of Estimates

Investment Classification

As required by the 1940 Act, investments are classified by level of control. “Control Investments” are defined as investments in portfolio companies that we are deemed to control, as defined in the 1940 Act. “Affiliate Investments” are investments in those companies that are affiliated companies, as defined in the 1940 Act, other than Control Investments. “Non-Control/Non-Affiliate Investments” are those that are neither Control Investments nor Affiliate Investments.

Generally, under the 1940 Act, we are deemed to control a company in which we have invested if we own more than 25% of the voting securities of such company. We are deemed to be an affiliate of a company if we own 5% or more of the voting securities of such company.

As of ~~September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017, all of our investments were non-control/non-affiliate investments.

Securities Transactions

Securities transactions are recorded on the trade date. The trade date for loans purchased in the “primary market” is considered the date on which the loan allocations are determined. The trade date for loans and other investments purchased in the “secondary market” is the date on which the transaction is entered into. The trade date for primary CLO equity transactions and any other security transaction entered outside conventional channels is the date on which (a) we have determined all material terms have been defined for the transaction and (b) we have obtained a right to (i) demand the securities purchased and incur an obligation to pay the price of the securities purchased or (ii) collect the proceeds of a sale and incurred an obligation to deliver the securities sold. Cost is determined based on consideration given, adjusted for amortization of original issuance discounts (“OID”), market discounts and premiums.

Realized Gain or Loss and Unrealized Gain or Loss

Realized gain or loss from an investment is recorded at the time of disposition and calculated using the weighted average cost method. Unrealized gain or loss reflects the changes in fair value of investments as determined in compliance with the valuation policy as discussed in Note 6.

Income Taxes

As a RIC under Subchapter M of the Code, we are not subject to U.S. federal income tax on the portion of our taxable income distributed to our stockholders as a dividend. We intend to distribute 100% of our taxable income and therefore do not anticipate incurring corporate-level U.S. federal or state income tax. As a RIC, we are also subject to a nondeductible federal excise tax if we do not distribute at least 98% of net ordinary income, 98.2% of any capital gain net income and any recognized and undistributed taxable income from prior years.

~~ASC Topic 740, Accounting for Uncertainty in~~ Income ~~Taxes~~determined ~~(“ASC~~under ~~740”),~~GAAP ~~provides~~differs ~~guidance~~from ~~for~~income ~~how~~determined ~~uncertain~~under tax ~~positions~~because ~~should~~of beboth ~~recognized,~~temporary ~~measured, presented~~ and ~~disclosed.~~permanent ~~ASC~~differences ~~740~~in ~~requires~~income ~~the~~and ~~evaluation~~expense ofrecognition, ~~tax~~including ~~positions~~(i) ~~taken~~unrealized orgains ~~expected~~and tolosses beassociated ~~taken~~with indebt ~~the~~investments ~~course~~marked ~~of preparing the tax returns~~ to ~~determine~~fair ~~whether~~value ~~the~~for ~~tax~~GAAP ~~positions~~but ~~are~~excluded ~~“more-likely-than-not”~~from oftaxable ~~being~~income ~~sustained~~until byrealized ~~the~~or ~~applicable~~settled, ~~tax~~(ii) ~~authority. Tax~~timing ~~positions~~differences ~~not~~on ~~deemed~~income torecognition ~~meet~~for ~~the~~our ~~more-likely-than-not~~CLO ~~threshold~~equity, ~~are~~(iii) ~~recorded~~premium asamortization aand ~~tax~~gain ~~benefit~~adjustments orattributable ~~provision in the current year. Determinations regarding ASC 740 may be subject~~ to ~~review~~net ~~and~~built-in ~~adjustment~~gains atrecognized ~~a later date based~~ upon ~~factors,~~our ~~including,~~initial ~~but~~public ~~not~~offering ~~limited~~(“IPO”) ~~to, an ongoing analysis of tax laws, regulations~~ and ~~interpretations~~(iv) ~~thereof. We~~capital ~~are~~losses ~~not~~in ~~aware~~excess of ~~any~~capital ~~tax~~gains ~~positions~~earned ~~for~~in ~~which~~a ittax isyear ~~reasonably~~do ~~possible~~not ~~that~~reduce ~~the~~current ~~total~~year ~~amount~~taxable ofincome, ~~unrecognized~~and ~~tax~~generally ~~benefits~~can ~~will~~be ~~change~~carried ~~materially~~forward into ~~the~~offset ~~next~~capital ~~12 months~~gains.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example, with the word “million” or otherwise)

ASC Topic 740, Accounting for Uncertainty in Income Taxes (“ASC 740”), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or provision in the current year. Determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors, including, but not limited to, an ongoing analysis of tax laws, regulations and interpretations thereof. We are not aware of any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will change materially in the next 12 months.

If we incur interest and/or penalties in connection with our tax obligations, such amounts shall be classified as income tax expense on our consolidated statements of operations.

Investment Income

For debt investments, we record interest income on the accrual basis to the extent that such amounts are expected to be collected. OID and purchased discounts and premiums are accreted into interest income using the effective interest method, where applicable. Loan origination fees are deferred and accreted into interest income using the effective interest method. We record prepayment premiums on loans and other investments as interest income when such amounts are received. We stop accruing interest on investments when it is determined that interest is no longer collectible. As of ~~September~~March 3031, 2018 and December 31, 2017, we had one loan on non-accrual status, which ~~represents~~represented 0.6% of the total investments at cost and 0.23% of the total investments at fair value.

Interest income on CLO equity investments is recognized using the effective interest method as required by ASC Subtopic 325-40, Investments-Other, Beneficial Interests in Securitized Financial Assets (“ASC 325-40”). Under ASC 325-40, at the time of purchase, we estimate the future expected cash flows and determine the effective yield of an investment based on these estimated cash flows and our cost basis. Subsequent to the purchase, these estimated cash flows are updated quarterly and a revised yield is calculated prospectively in accordance with ASC 320-10-35, Investment-Debt and Equity Securities. In the event that the fair value of an investment decreases below its current amortized cost basis, we may be required to write down the current amortized cost basis for a credit loss or to fair value depending on our hold expectations for the investment. Current amortized cost basis less the amount of any write down (“Reference Amount”) is used to calculate the effective yield used for interest income recognition purposes over the remaining life of the investment. We are precluded from reversing write downs for any subsequent increase in the expected cash flows of an investment with the effect of increasing total interest income over the life of the investment and increasing the realized loss recorded on the sale or redemption of the investment by the amount of the credit loss write down. In estimating these cash flows, there are a number of assumptions that are subject to uncertainties and contingencies. These include the amount and timing of principal payments (including prepayments, repurchases, defaults and liquidations), the pass through or coupon rate, and interest rate fluctuations. In addition, interest payment shortfalls due to delinquencies on the underlying loans and the timing and magnitude of projected credit losses on the loans underlying the securities have to be estimated. These uncertainties and contingencies are difficult to predict and are subject to future events that may impact our estimates and interest income. As a result, actual results may differ significantly from these estimates.

During the three months ended March 31, 2018, we recorded $0.5 million in reductions to the Reference Amount on three of our CLO equity investments. During the three months ended March 31, 2017, we recorded $3.0 million in reductions to the Reference Amount on seven of our CLO equity investments.

Cash and Cash Equivalents

Cash and cash equivalents consist of demand deposits and highly liquid financial instruments with original maturities of 90 days or less, including those held in overnight sweep bank deposit accounts. Cash and cash equivalents are carried at cost, which approximates fair value. We place our cash and cash equivalents with financial institutions and, at times, cash held in bank accounts may exceed the Federal Deposit Insurance Corporation insured limit.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (~~Continued~~continued)

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example, with the ~~words~~word “million” or otherwise)

cash flows and our cost basis. Subsequent to the purchase, these estimated cash flows are updated quarterly and a revised yield is calculated prospectively in accordance with ASC 320-10-35, Investment-Debt and Equity Securities. In the event that the fair value of an investment decreases below its current amortized cost basis, we may be required to write down the current amortized cost basis for a credit loss or to fair value depending on our hold expectations for the investment. Current amortized cost basis less the amount of any write down (“Reference Amount”) is used to calculate the effective yield used for interest income recognition purposes over the remaining life of the investment. We are precluded from reversing write downs for any subsequent increase in the expected cash flows of an investment with the effect of increasing total interest income over the life of the investment and increasing the realized loss recorded on the sale or redemption of the investment by the amount of the credit loss write down. In estimating these cash flows, there are a number of assumptions that are subject to uncertainties and contingencies. These include the amount and timing of principal payments (including prepayments, repurchases, defaults and liquidations), the pass through or coupon rate, and interest rate fluctuations. In addition, interest payment shortfalls due to delinquencies on the underlying loans and the timing and magnitude of projected credit losses on the loans underlying the securities have to be estimated. These uncertainties and contingencies are difficult to predict and are subject to future events that may impact our estimates and interest income. As a result, actual results may differ significantly from these estimates.

During the three months ended September 30, 2017, we recorded $0.2 million in reductions to the Reference Amount on two of our CLO equity investments. During the nine months ended September 30, 2017, we recorded $4.7 million in reductions to the Reference Amount on twelve of our CLO equity investments. During the three months ended September 30, 2016, we recorded $0.2 million in reductions to the Reference Amount on one CLO equity investment. During the nine months ended September 30, 2016, we recorded $1.3 million in reductions to the Reference Amount on four CLO equity investments.

Cash and Cash Equivalents

Consolidation

As permitted under Article 6 of Regulation S-X and as explained by ASC 946-810-45, Financial Services - Investment Companies - Consolidation, we will generally not consolidate an investment in a company other than an investment company subsidiary or a controlled operating company whose business consists primarily of providing services to us. Accordingly, we have consolidated the results of ACSF Funding in our consolidated financial statements.

Deferred Financing Costs

Deferred financing costs represent fees and other direct expenses incurred in connection with the issuance of debt. These costs are currently amortized over the life of ACSF Funding’s secured revolving credit facility using the straight line method.

Distributions to Stockholders

Distributions to stockholders are recorded on the ex-dividend date.

Other General and Administrative Expenses

Other general and administrative expenses include audit and tax fees, legal fees, board of directors'’ fees, rent, insurance, IT system costs, custody, transfer agent and other operating expenses, some of which are overhead expenses allocated to us by our Manager as discussed in Note 3. These expenses are recognized as incurred on an accrual basis.

Note 3. Management Agreement

Prior to January 3, 2017, we were managed by American Capital ACSF Management, LLC (our “Prior Manager”), an indirect wholly owned subsidiary of American Capital, Ltd. (“American Capital”), pursuant to a management agreement dated January 15, 2014 between us and our Prior Manager (the “Prior Management Agreement”). On January 3, 2017, IHAM was appointed as our new investment adviser. Additionally, on January 3, 2017, we entered into an interim management agreement with our Manager pursuant to Rule 15a-4 adopted under the 1940 Act (the “Interim Management Agreement”). The Prior Management Agreement was automatically terminated in accordance with its terms as a result of its deemed “assignment” under the 1940 Act, following the acquisition of American Capital by Ares Capital on January 3, 2017. On May 19, 2017, the Management Agreement was approved by our stockholders, and on such date, we entered into the Management Agreement.

The Management Agreement provides that our Manager will be compensated for serving as ACSF’s investment adviser at the same rate as in the Interim Management Agreement and the Prior Management Agreement: an annual rate of 0.80% of our total assets, excluding cash and cash equivalents and net unrealized appreciation or depreciation, each as determined under GAAP at the end of the most recently completed fiscal quarter with no incentive fee. For the three months ended March 31, 2018 and 2017, we recognized a management fee of $469 and $531, respectively. The portion of the management fee accrued for the first quarter of 2018 remains unpaid and is recorded as a liability on our Consolidated Statement of Assets and Liabilities.

Pursuant to the Prior Management Agreement, our Prior Manager agreed to be responsible for certain of our operating expenses in excess of 0.75% of our consolidated net assets, less net unrealized appreciation or depreciation, each as determined under GAAP at the end of the most recently completed fiscal quarter for the first 24 months following the date of our IPO in January 2014 (the “Prior Expense Cap”). The Prior Expense Cap was voluntarily extended by our Prior Manager until the termination of the Prior Management Agreement, and thus the Prior Expense Cap expired on January 3, 2017.

Pursuant to the Management Agreement, the services of all investment professionals and staff of our investment adviser, when and to the extent engaged in providing investment advisory and management services to us, are provided and paid for by our investment adviser. We are responsible for all other expenses of our operations and transactions, including, but not limited to, costs incurred in connection with formation and capital raising activities; transaction costs incident to the acquisition, disposition, financing, hedging and ownership of our and our subsidiaries' investments; diligence costs incurred for prospective investments; expenses incurred in contracting with third parties; external legal, auditing, accounting, consulting, investor relations, portfolio valuation, brokerage and administrative fees and expenses; the compensation and expenses of our

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (~~Continued~~continued)

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example, with the ~~words~~word “million” or otherwise)

~~The~~directors ~~Management~~who ~~Agreement~~are ~~provides~~not ~~that~~employees of our Manager ~~will~~or beany ~~compensated~~of ~~for~~its ~~serving~~affiliates asand ~~ACSF’s~~the ~~investment~~cost ~~adviser~~of atliability insurance to indemnify our directors and officers and the ~~same~~officers ~~rate~~and asemployees inof our Manager and its affiliates who provide services to us; the ~~Prior~~costs ~~Management~~associated ~~Agreement:~~with anour ~~annual~~indebtedness; ~~rate~~expenses related to the payment of ~~0.80%~~dividends; costs incurred by the Board and personnel of our ~~total~~Manager ~~assets~~or its affiliates for travel on our behalf; expenses relating to communications to holders of our securities, ~~excluding~~including ~~cash~~our website, and ~~cash~~in ~~equivalents~~complying with the continuous reporting and ~~net~~other ~~unrealized~~requirements ~~gain~~of orthe ~~loss~~SEC and other governmental bodies; tax and license fees applicable to us and our subsidiaries; insurance costs incurred by us and our subsidiaries; transfer agent, ~~each~~custodial, astrustee, ~~determined~~third ~~under~~party ~~GAAP~~loan atadministration and exchange listing fees; the ~~end~~costs of printing and mailing proxies and reports to our stockholders; the ~~most~~costs ~~recently~~of ~~completed~~establishing ~~fiscal~~and ~~quarter~~maintaining our websites; all cost of organizing, modifying or dissolving our company or any subsidiary and costs in preparation of entering into or exiting any business activity; our pro rata portion of costs associated with noany ~~incentive~~computer ~~fee.~~software, ~~For~~hardware or information technology services that are used by us or our subsidiaries; our pro rata portion of the ~~three~~costs and ~~nine~~expenses ~~months~~incurred ~~ended~~with ~~September 30~~respect to market information systems and publications, ~~2017~~research publications and materials used by us or our Manager on our behalf; settlement, weclearing, ~~recognized~~trustee, aprime ~~management~~brokerage ~~fee~~and ~~expense~~custodial fees and expenses relating to us and our subsidiaries; the costs of ~~$497~~maintaining compliance with all federal, state and $1local rules and regulations or any other regulatory agency (as such costs relate to us),~~561~~ all taxes and license fees and all insurance costs incurred on behalf of us; the costs of administering our equity incentive plans, ~~respectively~~if any; and our pro rata portion of rent and overhead expenses of our Manager and its affiliates required for our operations and our subsidiaries. ~~For~~Pursuant to the ~~three~~Management Agreement and ~~nine~~the Interim Management Agreement (as applicable), for the three months ended ~~September~~March 3031, ~~2016~~2018 and 2017, we recognized a$19 ~~management~~and ~~fee~~$27, ~~expense~~respectively, of ~~$512~~rent and ~~$1,520,~~overhead ~~respectively~~expenses that were reimbursable to our Manager.

~~Pursuant~~Beginning toin the ~~Prior~~first ~~Management~~quarter ~~Agreement~~of 2017, our ~~Prior~~ Manager voluntarily agreed to be responsible for certain of our 2017 quarterly other operating expenses in excess of ~~0.75%~~ a certain percentage of our consolidated net assets, less net unrealized gain or loss, each as ~~defined~~determined under GAAP at(individually, ~~the~~for ~~end~~each ofsuch ~~the~~quarter, ~~most~~a ~~recently~~“Voluntary ~~completed~~Expense ~~fiscal~~Cap” ~~quarter~~and ~~for~~collectively, the “Voluntary Expense Caps”). The first 24quarter ~~months~~2017 ~~following~~Voluntary ~~the~~Expense ~~date~~Cap was calculated based on an annual rate of 0.75% of our ~~initial~~consolidated ~~public~~net ~~offering~~assets ~~(“IPO”)~~less innet ~~January~~unrealized ~~2014~~gain ~~(the~~or ~~“Prior~~loss ~~Expense~~as ~~Cap”)~~of March 31, 2017. The ~~Prior~~second quarter 2017 Voluntary Expense Cap ~~was~~and ~~voluntarily~~third ~~extended~~quarter by2017 ~~our~~Voluntary ~~Prior~~Expense ~~Manager~~Cap ~~until~~were ~~the~~calculated ~~termination~~based on an annual rate of ~~the~~1.00% ~~Prior~~of ~~Management~~our ~~Agreement~~consolidated net assets less net unrealized gain or loss as of June 30, 2017 and ~~thus~~September ~~the~~30, ~~Prior~~2017, respectively. The fourth quarter 2017 Voluntary Expense Cap ~~expired~~was calculated based on ~~January~~an 3annual rate of 1.25% of our consolidated net assets less net unrealized gain or loss as of December 31, 2017. Our Manager has not agreed to be responsible for any of our operating expenses beyond December 31, 2017.

~~Pursuant~~For to the ~~Management~~ Agreement, the services of all investment professionals and staff of our investment adviser, when and to the extent engaged in providing investment advisory and management services to us, are provided and paid for by our investment adviser. We are responsible for all other expenses of our operations and transactions, including, but not limited to, costs incurred in connection with formation and capital raising activities; transaction costs incident to the acquisition, disposition, financing, hedging and ownership of our and our subsidiaries' investments; diligence costs incurred for prospective investments; expenses incurred in contracting with third parties; external legal, auditing, accounting, consulting, investor relations, portfolio valuation, brokerage and administrative fees and expenses; the compensation and expenses of our directors who are not employees of our Manager or any of its affiliates and the cost of liability insurance to indemnify our directors and officers and the officers and employees of our Manager and its affiliates who provide services to us; the costs associated with our indebtedness; expenses related to the payment of dividends; costs incurred by the Board and personnel of our Manager or its affiliates for travel on our behalf; expenses relating to communications to holders of our securities, including our website, and in complying with the continuous reporting and other requirements of the SEC and other governmental bodies; tax and license fees applicable to us and our subsidiaries; insurance costs incurred by us and our subsidiaries; transfer agent, custodial, trustee, third party loan administration and exchange listing fees; the costs of printing and mailing proxies and reports to our stockholders; our pro rata portion of costs associated with any computer software, hardware or information technology services that are used by us or our subsidiaries; settlement, clearing, trustee, prime brokerage and custodial fees and expenses relating to us and our subsidiaries; and our pro rata portion of rent and overhead expenses of our Manager and its affiliates required for our operations and our subsidiaries. Pursuant to the Management Agreement, for the three ~~and nine~~ months ended ~~September~~March 3031, 2017, ~~we recognized $18 and $58, respectively, of rent and overhead expenses that were reimbursable to~~ our Manager. ~~Pursuant~~was ~~to our Prior Management Agreement, we were~~ responsible for ~~reimbursing~~$437 ~~our~~of ~~Prior~~other ~~Manager,~~operating ~~American Capital and its affiliates, for certain~~ expenses ~~incurred~~as ona ~~our~~result ~~behalf.~~of ~~For~~ the ~~three~~first ~~and~~quarter ~~nine~~2017 ~~months~~Voluntary ~~ended~~Expense ~~September 30, 2016, we recognized $222 and $562, respectively, of such expenses that were reimbursable to our Prior Manager~~Cap.

Beginning in the first quarter of 2017, our Manager voluntarily agreed to be responsible for certain of our 2017 quarterly other operating expenses in excess of a certain percentage of our consolidated net assets, less net unrealized gain or loss, each as defined under GAAP (individually, for each such quarter, a “Voluntary Expense Cap” and collectively, the “Voluntary Expense Caps”). The first quarter 2017 Voluntary Expense Cap was calculated based on an annual rate of 0.75% of our consolidated net assets less net unrealized gain or loss as of March 31, 2017. The second quarter 2017 Voluntary Expense Cap and third quarter 2017 Voluntary Expense Cap were calculated based on an annual rate of 1.00% of our consolidated net assets less net unrealized gain or loss as of June 30, 2017 and September 30, 2017, respectively.

For the three and nine months ended September 30, 2017, our Manager was responsible for $59 and $673, respectively, of other operating expenses as a result of the applicable Voluntary Expense Caps. For the three and nine months ended September 30, 2016, our Prior Manager was responsible for $283 and $976, respectively, of other operating expenses as a result of the Prior Expense Cap.

Additionally, for the fourth quarter of fiscal 2017, our Manager has voluntarily agreed to be responsible for certain of our quarterly other operating expenses in excess of an annual rate of 1.25% of our consolidated net assets less unrealized gain or loss as of December 31, 2017, provided that the Management Agreement remains effective as of the date we file our Annual Report on Form 10-K for the fiscal year ended December 31, 2017. Our Manager has not agreed to be responsible for any of our operating expenses beyond December 31, 2017.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example with the words “million” or otherwise)

Note 4. Related Party Transactions

Administrative Services Agreement

We are externally managed by our Manager and do not have any employees. Our Manager is responsible for administering our business activities and day-to-day operations pursuant to the Management Agreement as discussed in Note 3 above. Further, pursuant to the Management Agreement, our Manager has agreed to provide us with certain administrative services. Our Manager provides such services to us via its administrative services agreement (the “Administrative Agreement”) with Ares Operations LLC (“Ares Operations”), a subsidiary of Ares Management, pursuant to which Ares Operations provides IHAM with, among other things, office facilities, equipment, clerical, bookkeeping and record keeping services, services relating to the marketing and sale of interests in vehicles managed by IHAM, managing the services and oversight of custodians, depositories, accountants, attorneys, underwriters and such other persons in any other capacity deemed to be necessary, which allows IHAM to fulfill all of its responsibilities under the Management Agreement. Payments made to Ares Operations by our Manager under the Administrative Agreement are equal to an amount based upon the allocable portion of Ares Operations’ overhead and other expenses (including travel expenses) incurred by Ares Operations in performing its obligations under the Administrative Agreement, including the allocable portion of the compensation, rent and overhead expenses of certain of IHAM’s officers and their respective staffs incurred on our behalf.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example, with the word “million” or otherwise)

Securities Transactions

We may, from time to time, purchase securities from, or sell securities to affiliates of our Manager at fair value on the trade date. During the three months ended March 31, 2018 and 2017, there were no purchases of securities from or sale of securities to affiliates of our Manager.

Note 5. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2017~~2018 and ~~2016~~2017:

		Three Months Ended September 30,					Nine Months Ended September 30,
	Three Months Ended March, 31
		2017			2016		2017		2016
	2018			2017
Numerator — Net Earnings	$	$3,125	21	$	$2,752	~~10,349~~	$	~~3,166~~	$	~~22,785~~
Denominator — weighted average shares	10,000	~~10,000~~		10,000	~~10,000~~		~~10,000~~		~~10,000~~
Net Earnings per share — basic and diluted		$	—		$	1.03	$	0.32	$	2.28
Net Earnings per share	$	0.31		$	0.28

Note 6. Investments

We value our investments at fair value in accordance with the 1940 Act and ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Due to the uncertainty inherent in the valuation process, estimates of fair value may differ significantly from the values that would have been used had a ready market for our investments existed, and the differences could be material. Additionally, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on the investments to be different than the valuations currently assigned.

ASC 820 provides a framework for measuring the fair value of assets and liabilities and provides guidance regarding a fair value hierarchy, which prioritizes information used to measure fair value and the effect of fair value measurements on earnings. When available, we determine the fair value of our investments using unadjusted quoted prices from active markets. Where inputs for an asset or liability fall into more than one level in the fair value hierarchy, the investment is classified in its entirety based on the lowest level input that is significant to that investment’s fair value measurement. We use judgment and consider factors specific to the investment when determining the significance of an input to a fair value measurement. Our policy is to recognize transfers in and out of levels as of the beginning of each reporting period. The three levels of the fair value hierarchy and investments that fall into each of the levels are described below:

Level 1: Inputs are unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. This may include valuations based on executed trades, broker quotations that constitute an executable price, and alternative pricing sources supported by observable inputs which, in each case, are either directly or indirectly observable for the asset in connection with market data at the measurement date.

Level 3: Inputs are unobservable and cannot be corroborated by observable market data. In certain cases, investments classified within Level 3 may include securities for which we have obtained indicative quotes from broker-dealers that do not necessarily represent prices the broker may be willing to trade on.

The valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs. Our SFRLs are predominately valued based on evaluated prices from a nationally recognized independent pricing service or from third-party brokers who make markets in such debt investments. When possible, we make inquiries of third-party pricing sources to understand their use of significant inputs and assumptions. We review the third-party fair value estimates and perform procedures to validate their reasonableness, including an analysis of the range and dispersion of third-party estimates,

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (~~Continued~~continued)

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example, with the ~~words~~word “million” or otherwise)

There may be instances when independent or third-party pricing sources are not available, or cases where we believe that the third-party pricing sources do not provide sufficient evidence to support a market participant’s view of the fair value of the debt investment being valued. These instances may result from an investment in a less liquid loan such as a middle market loan, a mezzanine loan or unitranche loan, or a loan to a company that has become financially distressed. In these instances, we may estimate the fair value based on a combination of a market yield valuation methodology and evaluated pricing discussed above, or solely based on a market yield valuation methodology. Under the market yield valuation methodology, we estimate the fair value based on a discounted cash flow technique. For these loans, the unobservable inputs used in the market yield valuation methodology to measure fair value reflect management’s best estimate of assumptions that would be used by market participants when pricing the investment in a hypothetical transaction, including estimated remaining life, current market yield and interest rate spreads of similar loans and securities as of the measurement date. We will estimate the remaining life based on market data for the average life of similar loans. However, if we have information that the loan is expected to be repaid in the near term, we would use an estimated remaining life based on the expected repayment date. The average life to be used to estimate the fair value of our loans may be shorter than the legal maturity of the loans since many loans are prepaid prior to the maturity date. The interest rate spreads used to estimate the fair value of our loans is based on current interest rate spreads of similar loans. If there is a significant deterioration of the credit quality of a loan, we may consider other factors that a hypothetical market participant would use to estimate fair value, including the proceeds that would be received in a liquidation analysis.

We estimate the fair value of our CLO equity investments ~~using~~based aon ~~combination~~various ofvaluation models from third-party ~~broker~~pricing ~~quotes,~~services ~~purchases~~as orwell ~~sales~~as ofinternal ~~the~~models. ~~same~~The orvaluation ~~similar~~models ~~securities,~~generally ~~and~~utilize discounted cash ~~flow~~flows ~~forecasts subject to assumptions that a market participant would use regarding the investments’ underlying collateral, including, but not limited to, assumptions for default~~ and ~~recovery~~take ~~rates,~~into ~~reinvestment~~consideration ~~spreads~~prepayment and ~~prepayment~~loss ~~rates. Cash flow forecasts are discounted using market participant’s market yield~~ assumptions ~~that are derived from multiple sources~~, ~~including,~~based ~~but~~on ~~not~~historical ~~limited~~experience ~~to, third-party broker quotes, industry research reports~~ and ~~transactions~~projected ~~of securities and indices with similar structures and risk characteristics. We weight the use of third-party broker quotes~~performance, ifeconomic ~~any~~factors, ~~when~~the ~~determining~~characteristics ~~fair~~and ~~value~~condition ~~based on our understanding~~ of the ~~level~~underlying ~~of actual transactions used by the broker to develop the quote and whether the quote was an indicative price or binding offer~~collateral, ~~the~~comparable ~~depth~~yields ~~and~~for ~~consistency~~similar ofsecurities ~~broker quotes~~ and ~~the~~recent ~~correlation~~trading ofactivity. ~~changes~~These insecurities ~~broker~~are ~~quotes~~classified ~~with~~as ~~underlying~~Level ~~performance and other market indices~~3.

The following fair value hierarchy tables set forth our investments measured at fair value on a recurring basis by level as of ~~September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017:

	September 30, 2017
	March 31, 2018
	Total		Level 1		Level 2		Level 3
First lien floating rate loans	$	~~175~~169,~~274~~620	$	—	$	~~143~~132,~~627~~382	$	3137,~~647~~238
Second lien floating rate loans	1312,~~263~~970		—		1110,~~964~~570		12,~~299~~400
CLO equity	3941,~~210~~977		—		—		3941,~~210~~977
Common equity	4975		—		—		4975
Warrants	—		—		—		—
Total Investments	$	~~227~~224,~~796~~642	$	—	$	~~155~~142,~~591~~952	$	7281,~~205~~690

	December 31, 2016
	December 31, 2017
	Total		Level 1		Level 2		Level 3
First lien floating rate loans	$	~~188~~170,~~098~~947	$	—	$	~~188~~132,~~098~~364	$	—38,583
Second lien floating rate loans	1514,~~429~~401		—		1412,~~875~~786		~~554~~1,615
CLO equity	4143,~~329~~828		—		—		4143,~~329~~828
Common equity	1664		—		—		1664
Total Investments	$	244,872	$	—	$	202,973	$	41,899
Warrants	—		—		—		—
Total Investments	$	229,240	$	—	$	145,150	$	84,090

The following table provides a summary of the changes in fair value of Level 3 assets for the three months ended March 31, 2018, as well as the portion of net unrealized gain (loss) for the three months ended March 31, 2018 related to those assets still held as of March 31, 2018:

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (~~Continued~~continued)

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example, with the ~~words~~word “million” or otherwise)

The following table provides a summary of the changes in fair value of Level 3 assets for the nine months ended September 30, 2017, as well as the portion of net unrealized gain (loss) for the nine months ended September 30, 2017 related to those assets still held as of September 30, 2017:



	First Lien Floating Rate Loans			Second Lien Floating Rate Loans			CLO Equity			Common Equity		Warrants		Total
Beginning Balance – December 31, 2017	$	38,583		$	1,615		$	43,828		$	64	$	—	$	84,090
Purchases	4,157			—			181			—		—		4,338
Sales	—			—			(963		)	—		—		(963		)
Repayments ⁽¹⁾	(1,357		)	(20		)	(2,266		)	—		—		(3,643		)
Amortization/accretion and CLO income accrual ⁽²⁾	10			—			1,361			—		—		1,371
Transfers out ⁽³⁾	(11,848		)	(123		)	—			—		—		(11,971		)
Transfers in ⁽³⁾	7,572			907			—			—		—		8,479
Net realized gain (loss)	9			—			(784		)	—		—		(775		)
Net unrealized gain	112			21			620			11		—		764
Ending Balance – March 31, 2018	$	37,238		$	2,400		$	41,977		$	75	$	—	$	81,690
Net change in unrealized gain (loss) attributable to our Level 3 assets still held as of March 31, 2018	$	131		$	21		$	(193	)	$	10	$	—	$	(31	)

	First Lien Floating Rate Loans			Second Lien Floating Rate Loans			CLO Equity			Common Equity			Warrants		Total
December 31, 2016 (1)	$	—		$	554		$	41,329		$	16		$	—	$	41,899
Purchases	21,442			1,009			11,974			—			—		34,425
Sales	(522		)	—			(7,355		)	(9		)	—		(7,886		)
Repayments (2)	(3,660		)	(1,071		)	(8,673		)	—			—		(13,404		)
Amortization of discount / premium (3)	16			(1		)	4,772			—			—		4,787
Transfers out (4)	(18,727		)	(1,929		)	—			—			—		(20,656		)
Transfers in (4)	32,836			2,720			—			52			—		35,608
Net realized gain (loss)	8			(8		)	(5,506		)	9			—		(5,497		)
Net unrealized gain (loss)	254			25			2,669			(19		)	—		2,929
Ending Balance – September 30, 2017	$	31,647		$	1,299		$	39,210		$	49		$	—	$	72,205
Net change in unrealized gain (loss) attributable to our Level 3 assets still held as of September 30, 2017	$	335		$	22		$	1,146		$	49		$	—	$	1,552


(1)	Includes total cash distributions from CLO equity investments.


(2)	Includes amortization/accretion of discount/premium on the loan portfolio and income accrued on the CLOs using the effective interest method during the three months ended March 31, 2018.

(3)

Investments were transferred into and out of Level 3 and Level 2 due to changes in the quantity and quality of inputs obtained to support the fair value of each investment. Transfers into and out of the levels are recognized at the beginning of the period. Transfers into Level 3 for SFRLs were due to an accounting policy change to classify vendor priced securities with only one broker quote supporting the price as a Level 3 investment beginning in the first quarter of 2018.

The following table provides a summary of the changes in fair value of Level 3 assets for the three months ended March 31, 2017, as well as the portion of net unrealized gain (loss) for the three months ended March 31, 2017 related to those assets still held as of March 31, 2017:



	First Lien Floating Rate Loans			Second Lien Floating Rate Loans			CLO Equity			Common Equity			Total
December 31, 2016 ⁽¹⁾	$	—		$	554		$	41,329		$	16		$	41,899
Purchases	10,546			1,010			1,540			—			13,096
Sales	—			—			—			(9		)	(9		)
Repayments ⁽¹⁾	882			—			(2,646		)	—			(1,764		)
Amortization/accretion and CLO income accrual⁽³⁾	2			—			1,835			—			1,837
Transfers out ⁽⁴⁾	—			(554		)	—			—			(554		)
Transfers in ⁽⁴⁾	17,509			1,357			—			—			18,866
Net realized gain (loss)	(11		)	—			—			9			(2		)
Net unrealized gain (loss)	185			15			(27		)	(16		)	157
Ending Balance – March 31, 2017	$	29,113		$	2,382		$	42,031		$	—		$	73,526
Net change in unrealized gain (loss) attributable to our Level 3 assets still held as of March 31, 2017	$	165		$	15		$	(163	)	$	(16	)	$	1


(1)	Beginning balances as of December 31, 2016 are presented as stated in our December 31, 2016 Annual Report on Form 10-K and were not updated to reflect the differences resulting from exercising judgment on observability of inputs to leveling as discussed in note (4) below. The financial effects of these differences appear as transfer between Level 2 and Level 3 during the current fiscal quarter.


(2)	Includes total cash distributions from CLO equity investments.

(3) Includes amortization/accretion of discount/premium on the loan portfolio and income ~~accrual~~accrued ~~from~~on ~~CLO~~the ~~equity~~CLOs ~~investments~~using the effective interest method during the three months ended March 31, 2017.

(4) Investments were transferred into and out of Level 3 and Level 2 due to changes in the quantity and quality of inputs obtained to support the fair value of each investment. Transfers into and out of the levels are recognized at the beginning of the period. Transfers into Level 3 for Floating Rate Loans were due to an accounting policy change to classify vendor priced securities with only one broker quote supporting the price as a Level 3 investment beginning in the first quarter of 2017.

The following table provides a summary of the changes in fair value of Level 3 assets for the nine months ended September 30, 2016 as well as the portion of net unrealized gain (loss) for the nine months ended September 30, 2016 related to those assets still held as of September 30, 2016:

	First Lien Floating Rate Loans		Second Lien Floating Rate Loans			CLO Equity			Common Equity			Total
Beginning Balance – December 31, 2015	$	—	$	359		$	36,854		$	47		$	37,260
Purchases	—		—			1,493			—			1,493
Repayments (1)	—		(33		)	(10,049		)	—			(10,082		)
Amortization of discount/premium (2)	—		1			5,215			—			5,216
Net unrealized gain (loss)	—		201			5,343			(40		)	5,504
Ending Balance – September 30, 2016	$	—	$	528		$	38,856		$	7		$	39,391
Net change in unrealized gain (loss) attributable to our Level 3 assets still held as of September 30, 2016	$	—	$	201		$	5,343		$	(40	)	$	5,504

(1) Includes total cash distributions from CLO equity investments.

(2) Includes income accrual from CLO equity investments.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (~~Continued~~continued)

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example, with the ~~words~~word “million” or otherwise)

~~The~~(4) ~~following~~Investments ~~table~~were ~~summarizes~~transferred ~~the~~into ~~significant~~and ~~unobservable~~out ~~inputs~~of ~~used~~Level 3 and Level 2 due to changes in the ~~determination~~quantity and quality of inputs obtained to support the fair value ~~for~~of ~~our~~each investment. Transfers into and out of the levels are recognized at the beginning of the period. Transfers into Level 3 ~~investments~~for bySFRLs ~~category~~were ofdue ~~investment~~to ~~and~~an ~~valuation~~accounting ~~technique~~policy change to classify vendor priced securities with only one broker quote supporting the price as ofa ~~September 30,~~Level 3 investment beginning in the first quarter of 2017: .

Range

Fair Value

ValuationTechniques/Methodology

SignificantUnobservableInputs

Minimum

Maximum

Weighted Average

First lien floating rate loans

31,647

Third-party vendor pricing service

N/A

Second lien floating rate loans

1,299

Third-party vendor pricing service

N/A

CLO equity

39,210

Third-party vendor pricing service

N/A

Common equity

Third-party vendor pricing service

N/A

Warrants

—

EV Market Multiple Analysis

EBITDA Multiple

2.0x

Total

72,205

The following table summarizes the significant unobservable inputs used in the determination of fair value for our Level 3 investments by category of investment and valuation technique as of March 31, 2018:

Range

Fair Value

Valuation

Techniques/

Methodology

Significant

Unobservable

Inputs

Minimum

Maximum

Weighted Average

First lien floating rate loans

37,238

Third-party vendor pricing service

N/A

Second lien floating rate loans

2,400

Third-party vendor pricing service and/or broker quote

N/A

CLO equity

41,977

Third-party vendor pricing service

N/A

Common equity

Third-party vendor pricing service

N/A

Warrants

—

EV Market Multiple Analysis

EBITDA Multiple

2.0x

Total

81,690

Range

Fair Value

ValuationTechniques/Methodology

SignificantUnobservableInputs

Minimum

Maximum

Weighted Average

Second lien floating rate loans

554

Third-party vendor pricing service

N/A

CLO equity

41,329

Discounted cash flow

Discount ratePrepayment rateDefault rate

11.7%25.0%2.2%

26.7%25.0%2.7%

17.0%25.0%2.4%

Common equity

Third-party vendor pricing service

N/A

Total

41,899

Range

Fair Value

Valuation

Techniques/

Methodology

Significant

Unobservable

Inputs

Minimum

Maximum

Weighted Average

First lien floating rate loans

38,583

Third-party vendor pricing service

N/A

Second lien floating rate loans

1,615

Third-party vendor pricing service

N/A

CLO equity

41,949

Third-party vendor pricing service

N/A

1,584

Recent Transaction Price

N/A

90.5%

295

Estimated Distributions

Future Distribution

$295

Total CLO equity

43,828

Common equity

Third-party vendor pricing service

N/A

Warrants

—

EV Market Multiple Analysis

EBITDA Multiple

2.0x

Total

84,090

The significant unobservable inputs used in the fair value measurement of CLO equity include the default and prepayment rates used to establish projected cash flows and the discount rate applied in the valuation models to those projected cash flows. An increase in any one of these individual inputs in isolation would likely result in a decrease to fair value. However, given the interrelationship between these inputs, overall market conditions would likely have a more significant impact on our Level 3 fair values than changes in any one unobservable input. Our maximum exposure to loss due to credit risk is their fair value.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (~~Continued~~continued)

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example, with the ~~words~~word “million” or otherwise)

We use Standard & Poor's, an independent international financial data and investment services company and provider of global equity indexes, for classifying the industry groupings of our SFRL investments. The following table shows the SFRL portfolio composition by industry grouping at fair value as a percentage of total SFRLs as of ~~September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017. Our investments in CLOs are excluded from the table.

	September 30, 2017	December 31, 2016
	March 31, 2018	December 31, 2017
Electronics/Electric	18.0%	17.8%
Health Care	13.4%	13.6%
Health Care	12.6%	11.0%
Electronics/Electric	12.2%	16.7%
Business Equipment and Services	97.69%	118.46%
Aerospace and Defense	57.81%	47.60%
Clothing/Textiles	4.2%	3.2%
Technology	4.7%	4.7%
Industrial Equipment	4.0%	2.9%
Clothing/Textiles	4.3%	4.2%
Food/Drug Retailers	2.9%	1.2%
Utilities	4.1%	2.7%
Utilities	2.9%	2.2%
Oil and Gas	3.6%	3.6%
Telecommunications	2.8%	2.4%
Service & Equipment	3.6%	1.0%
Oil and Gas	2.5%	1.8%
Food/Drug Retailers	3.1%	3.0%
Technology	2.2%	—%
Energy	2.8%	1.6%
Financial Intermediaries	2.2%	2.8%
Conglomerates	2.7%	1.4%
Chemical/Plastics	2.27%	2.06%
Home Furnishings	2.1%	1.0%
Automotive	2.6%	2.6%
Retailers (except food and drug)	2.1%	3.4%
Telecommunications	1.8%	2.3%
Diversified Insurance	21.07%	61.97%
Food Products	1.9%	3.3%
Industrial Equipment	1.6%	1.6%
Containers and Glass Products	1.7%	3.4%
Banking, Finance & Insurance	1.6%	1.0%
Automotive	1.7%	0.7%
Containers and Glass Products	1.5%	1.5%
Energy	1.6%	—%
Retailers (except Food and Drug)	1.5%	1.8%
Publishing	1.5%	1.7%
Electronics	1.5%	1.5%
Conglomerates	1.3%	1.6%
Nonferrous Metals/Minerals	1.5%	1.5%
Electronics	1.3%	—%
Education	1.4%	—%
Insurance	1.3%	1.2%
Telecommunications/Cellular Communications	1.1%	1.1%
Industrials	1.1%	—%
Ecological services and equipment	1.1%	1.1%
Ecological Services and Equipment	1.1%	—%
Publishing	1.1%	1.1%
Leisure Goods/Activities/Movies	1.01%	21.60%
Service & Equipment	1.0%	—%
Consumer Products	1.0%	1.0%
Consumer Products	1.0%	—%
Home Furnishings	1.0%	2.1%
Lodging and Casinos	0.8%	1.6%
Financial Intermediaries	0.9%	0.9%
Surface Transport	0.8%	1.2%
Food Service	0.8%	—%
Cable and Satellite Television	0.5%	1.2%
Lodging and Casinos	0.8%	0.8%
Cosmetics/Toiletries	0.4%	1.4%
Food Products	0.6%	0.9%
Building & Development	—%	1.8%
Insurance	0.6%	1.3%
Steel	—%	1.2%
Cable and Satellite Television	0.5%	0.5%
Broadcast Radio and Television	—%	1.9%
Cosmetics/Toiletries	0.4%	0.4%
Other	10.91%	01.6%
Total	100.0%	100.0%

Certain Standard & Poor’s industry classifications as of December 31, 2016 were reclassified to conform with the current period presentation.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (~~Continued~~continued)

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example, with the ~~words~~word “million” or otherwise)

Note 7. Debt

Secured Revolving Credit Facility

ACSF Funding is a party to a secured revolving credit facility with Bank of America, N.A. (as amended and restated, the “Credit Facility”), which allows ACSF Funding to borrow up to $135,000. The Credit Facility matures on December 18, 2018. ACSF Funding may make draws under the Credit Facility from time to time to purchase or acquire certain eligible assets. The Credit Facility is secured by ACSF Funding’s assets pursuant to a security agreement and contains customary financial and negative covenants and events of default. On January 3, 2017, ACSF Funding entered into an amendment to the documents governing the Credit Facility that amended the relevant provisions of the Credit Facility to reflect the appointment of IHAM as ACSF’s new investment adviser. As of ~~September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017, the fair value of the assets pledged as collateral in ACSF Funding was $~~188~~182,~~537~~591 and $~~207~~185,~~827~~348, respectively. The Credit Facility is non-recourse to ACSF. Amounts drawn under the Credit Facility bear interest at a rate per annum equal to either (a) LIBOR plus 1.80%, or (b) 0.80% plus the highest of (i) the Federal funds rate plus 0.50%, (ii) Bank of America, N.A.’s prime rate or (iii) one-month LIBOR plus 1%. ACSF Funding may borrow, prepay and reborrow loans under the Credit Facility at any time prior to November 18, 2018, the commitment termination date, subject to certain terms and conditions, including maintaining a sufficient borrowing base. Any outstanding balance on the Credit Facility as of the commitment termination date must be repaid by the maturity date unless otherwise extended. See Note 11 for a subsequent event regarding a downsize of the Credit Facility.

ACSF Funding is required to pay a commitment fee in an amount equal to 0.75% on the actual daily unused amount of the current lender commitments under the Credit Facility to the extent the outstanding amount of committed loans is less than an amount equal to 90% of the aggregate commitments through the commitment termination date, payable quarterly in arrears.

As of ~~September~~March 3031, ~~2017~~2018, there was $9693,800 outstanding under the Credit Facility, which had a fair value of $9693,800 and a stated interest rate of 3.0168%. As of December 31, ~~2016~~2017, there was $~~104~~87,~~900~~500 outstanding under the Credit Facility, which had a fair value of $~~104~~87,~~900~~500 and a stated interest rate of 23.5232%. The fair value of the Credit Facility is determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions and is measured with Level 3 inputs. As of ~~September~~March ~~30, 2017 and December~~ 31, ~~2016~~2018, ACSF and ACSF Funding were in compliance in all material respects with all covenants of the Credit Facility, including compliance with a borrowing base that applies various advance rates of up to 80% on the assets pledged as collateral by ACSF Funding.

For the three months ended ~~September~~March 3031, ~~2017~~2018, we incurred interest and commitment fees on the Credit Facility of $~~811~~801 and $5775, respectively. ~~For~~ ~~the nine months ended September 30, 2017, we incurred interest and commitment fees on the Credit Facility of $2,122 and $202, respectively.~~ For the three months ended ~~September~~March 3031, ~~2016~~2017, we incurred interest and commitment fees on the Credit Facility of $~~572~~643 and $7067, respectively. ~~For~~ ~~the nine months ended September 30, 2016, we incurred interest and commitment fees on the Credit Facility of $1,699 and $201, respectively.~~

Note 8. Taxes

Income Taxes

We have elected to be treated as a RIC for income tax purposes. In order to qualify as a RIC, among other things, we are required to distribute annually at least 90% of our ordinary income, including net short term gains in excess of net long term losses. So long as we qualify as a RIC, we are not subject to the entity level taxes on earnings timely distributed to our stockholders. We intend to make sufficient annual distributions to substantially eliminate our corporate level income taxes.

Income determined under GAAP differs from income determined under tax because of both temporary and permanent differences in income and expense recognition, including (i) unrealized gains and losses associated with debt investments marked to fair value for GAAP but excluded from taxable income until realized or settled, (ii) timing differences on income recognition for our CLO equity investments, (iii) premium amortization and gain adjustments attributable to net built-in gains recognized upon our IPO and (iv) capital losses in excess of capital gains earned in a tax year do not reduce current year taxable income, and generally can be carried forward to offset capital gains.

At our discretion, we may delay distributions of a portion of our current year taxable income to the subsequent year and pay 4% excise taxes on such deferred distributions as calculated under the Code. If we anticipate paying excise taxes, we accrue excise taxes on a quarterly basis based on our estimates. For the three and nine months ended September 30, 2017, we recorded an excise tax provision of $5 and $33, respectively. For the three months ended September 30, 2016, we recorded an excise tax provision of $23. For the nine months ended September 30, 2016, we recorded an excise tax benefit of $75.

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (~~Continued~~continued)

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example, with the ~~words~~word “million” or otherwise)

Note 98. Consolidated Financial Highlights

	Nine Months Ended September 30,
	Three Months Ended March 31,
	2017			2016
	2018			2017
Per Share Data:
Net asset value, beginning of period	$	13.6809		$	1113.7968
Net investment income	0.8122			0.9031
Net realized and unrealized gain (loss) on investments	(0.5009		)	1(0.3804		)
Net Earnings	0.31			20.2827
Distributions to stockholders	(0.8729		)	(0.8729		)
Net asset value, end of period	$	13.1211		$	13.2066
Per share market value, end of period	$	11.5015		$	1113.0375
Total return based on market value (1), (5)	38.5276		%	2218.3718		%
Total return based on net asset value (1), (5)	2.3238		%	222.1001		%
Ratios to Average Net Assets:
Net investment income (2)	87.1308		%	9.8135		%
Operating expenses (2), (3)	2.4361		%	2.4106		%
Interest and related expenses (2)	2.3876		%	2.1518		%
Total expenses (2), (3)	45.8137		%	4.5624		%
Supplemental Data:
Net assets, end of period	$	131,~~225~~071		$	~~131~~136,~~984~~631
Shares outstanding, end of period	10,000			10,000
Average debt outstanding	$	9995,~~383~~434		$	9899,~~496~~244
Asset coverage per unit, end of period (4)	$	2,~~356~~397		$	2,~~320~~317
Portfolio turnover ratio (5)	4610.8279		%	3525.6486		%


(1)	Total return is based on the change in market price or net asset value per share, as applicable, during the period and takes into account distributions reinvested in accordance with the dividend reinvestment and stock purchase plan.


(2)	Annualized for periods less than one year.

(3) For the ~~nine~~three months ended ~~September~~March 3031, 2017, the ratio of operating expenses to average net assets and the ratio of total expenses to average net assets are shown net of the reimbursement asfor athe ~~result~~first ofquarter ~~the~~2017 ~~applicable~~ Voluntary Expense ~~Caps~~Cap. The ratio of operating expenses to average net assets and the ratio of total expenses to average net assets would be 3.1036% and 5.4854%, respectively, without the ~~applicable~~first ~~Voluntary~~quarter ~~Expense Caps for the nine months ended September 30,~~ 2017. ~~For~~Voluntary ~~the nine months ended September 30, 2016, the ratio of operating expenses to average net assets and the ratio of total expenses to average net assets are shown net of the reimbursement for the Prior~~ Expense Cap. ~~The ratio of operating expenses to average net assets and the ratio of total expenses to average net assets would be 3.47% and 5.62%, respectively, without the Prior Expense Cap~~ for the ~~nine~~three months ended ~~September~~March 3031, ~~2016~~2017.


(4)	The asset coverage ratio for a class of senior securities representing indebtedness is calculated on our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by the senior securities representing indebtedness. This asset coverage ratio is multiplied by $1,000 to determine the asset coverage per unit.


(5)	Not annualized for periods less than one year.

Note 109. Capital Transactions

OnThere ~~August~~were 8,no ~~2017,~~common weshare ~~declared~~transactions athat ~~monthly~~occurred ~~cash~~during ~~distribution~~the tothree ~~stockholders~~months ofended ~~$0.097~~March ~~per share for each of August~~31, ~~September and October 2017~~2018. ~~See also Note 12.~~

~~Note~~On 11January 18, 2018, we declared a monthly cash distribution to stockholders of $0.097 ~~Commitments~~per share for each of February, March and ~~Contingencies~~April 2018. See also Note 11.

InNote ~~the ordinary course of business, we may be a party to certain legal proceedings, including actions brought against us and others with respect to investment transactions~~10. ~~The~~Commitments ~~outcomes of any such legal proceedings are uncertain~~ and, as a result of these proceedings, the values of the investments to which they relate could decrease. We were not subject to any material litigation against us as of September 30, 2017 or December 31, 2016.Contingencies

~~Commitments~~In tothe ~~extend~~ordinary ~~credit~~course ~~include~~of ~~loan~~business, ~~proceeds~~ we ~~are~~may ~~obligated~~be toa ~~advance,~~party ~~such~~to ascertain ~~delayed~~legal ~~draws~~proceedings, orincluding ~~revolving~~actions ~~credit~~brought ~~arrangements. Commitments~~against ~~generally~~us ~~have~~and ~~fixed~~others ~~expiration~~with ~~dates~~respect orto ~~other~~investment ~~termination clauses~~transactions. ~~Unrealized~~The ~~gains~~outcomes orof ~~losses~~any ~~associated~~such ~~with~~legal ~~unfunded~~proceedings ~~commitments~~ are ~~recorded~~uncertain inand, ~~the~~as ~~consolidated~~a ~~financial~~result ~~statements~~of ~~and~~these ~~reflected~~proceedings, asthe anvalues ~~adjustment~~of the investments to ~~the~~which ~~fair~~they ~~value~~relate ofcould ~~the~~decrease. ~~related~~We ~~security~~were innot ~~the~~subject ~~Consolidated~~to ~~Schedule~~any ofmaterial ~~Investments.~~litigation ~~The~~against ~~par~~us ~~amount~~as of ~~the~~March 31, ~~unfunded~~2018 ~~commitments~~or ~~are~~December 31, 2017.

Commitments to extend credit include loan proceeds we are obligated to advance, such as delayed draws or revolving credit arrangements. Commitments generally have fixed expiration dates or other termination clauses. Unrealized gains or

AMERICAN CAPITAL SENIOR FLOATING, LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (~~Continued~~continued)

(unaudited)

(in thousands, except per share data, percentages and as otherwise indicated; for example, with the ~~words~~word “million” or otherwise)

losses associated with unfunded commitments are recorded in the consolidated financial statements and reflected as an adjustment to the fair value of the related security in the Consolidated Schedule of Investments. The par amount of the unfunded commitments is not recognized by the Company until the commitment becomes funded. As of ~~September~~March 3031, ~~2017,~~2018 weand ~~had $90.9 of outstanding unused loan commitments. As of~~ December 31, ~~2016~~2017, we had $~~81.5~~784 and $553, respectively, of outstanding ~~unused~~unfunded loan commitments.

Note 1211. Subsequent Events

We declared a monthly cash distribution to stockholders of $0.097 per share for each of ~~November and December~~May, ~~2017~~June and ~~January~~ July 2018. The monthly cash distributions will be paid to common stockholders of record as set forth in the table below:

	Distribution per Share	Record Date	Ex-Dividend Date	Payment Date
	Distribution Per Share	Record Date	Ex-Dividend Date	Payment Date
November 2017	$0.097	November 24, 2017	November 22, 2017	December 5, 2017
May 2018	$0.097	May 21, 2018	May 18, 2018	June 4, 2018
December 2017	$0.097	December 22, 2017	December 20, 2017	January 4, 2018
June 2018	$0.097	June 20, 2018	June 19, 2018	July 5, 2018
January 2018	$0.097	January 23, 2018	January 19, 2018	February 2, 2018
July 2018	$0.097	July 20, 2018	July 19, 2018	August 2, 2018

In May 2018, ACSF Funding exercised its option under its Credit Facility to reduce its total commitment thereunder by $20.0 million, resulting in aggregate commitments of $115.0 million under the Credit Facility.

Plan of Complete Liquidation and Dissolution

On May 4, 2018, ACSF’s board of directors approved a Plan of Complete Liquidation and Dissolution (the “Plan”) of ACSF that includes the sale of all or substantially all of ACSF’s assets and distribution of the net proceeds to ACSF’s stockholders, after which ACSF will be dissolved. The Plan is subject to the approval of the stockholders, which ACSF’s board of directors plans to seek at a special meeting called for the purpose of approving the Plan, as detailed in the preliminary proxy statement filed with the SEC on the date hereof. If ACSF’s stockholders approve the Plan, we intend to, among other things, convert all or substantially all of our assets into cash, pay all of our other known liabilities and make provisions for contingent liabilities, and make one or more distributions to our stockholders of cash available for distribution.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The information contained in this section should be read in conjunction with our financial statements and notes thereto appearing elsewhere in this report.

Forward-Looking Statements

Some of the statements in this report constitute forward-looking statements, which relate to future events or our future performance or financial condition. We generally use words such as “anticipates,” “believes,” “expects,” “intends” and similar expressions to identify forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements for any reason, including any factors set forth in “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, ~~2016~~2017 and elsewhere in this report. The forward-looking statements contained herein involve risks and uncertainties, including statements as to: (i) our ability to implement and proceed with the plan of complete liquidation and dissolution; (ii) our future operating results; (iiiii) our business prospects and the prospects of our portfolio companies; (~~iii~~iv) the impact of investments that we expect to make; (ivv) our contractual arrangements and relationships with third-parties; (vvi) the dependence of our future success on the general economy and market conditions and their respective impact on the portfolio companies and industries in which we invest; (vivii) the impact of changes in laws or regulations (including the interpretation thereof) governing our operations, including the Small Business Credit Availability Act (the “SBCAA”), or the operations of our portfolio companies or the operations of our competitors; (viii) the ability of our portfolio companies to achieve their objectives; (~~vii~~ix) our expected financings and investments; (~~viii~~x) the adequacy of our cash resources and working capital; and (ixxi) the timing of cash flows, if any, from the operations of our portfolio companies.

We have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we may file with the SEC in the future, including any annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

Overview

American Capital Senior Floating, Ltd. (“ACSF”, “we”, “our” and “us”), a Maryland corporation organized in February 2013 that commenced operations on October 15, 2013, is an externally managed, diversified closed-end investment management company. We have elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder (the “1940 Act”). In addition, for U.S. federal income tax purposes we have elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). We are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”), and intend to take advantage of the exemption for emerging growth companies allowing us to temporarily forgo the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002. We do not intend to take advantage of other disclosure or reporting exemptions for emerging growth companies under the JOBS Act.

Prior to January 3, 2017, we were managed by American Capital ACSF Management, LLC (our “Prior Manager”), an indirect wholly owned subsidiary of American Capital, Ltd (“American Capital”), pursuant to a management agreement dated January 15, 2014 between us and our Prior Manager (the “Prior Management Agreement”). On January 3, 2017, Ivy Hill Asset Management, L.P. (“IHAM” or our “Manager”) was appointed as our new investment adviser. Additionally, on January 3, 2017, we entered into an interim management agreement with our Manager pursuant to Rule 15a-4 adopted under the 1940 Act (the “Interim Management Agreement”). The Prior Management Agreement was automatically terminated in accordance with its terms as a result of its deemed “assignment” under the 1940 Act, following the acquisition of American Capital by Ares Capital Corporation (NASDAQ: ARCC) (“Ares Capital”) on January 3, 2017. On May 19, 2017, a new management agreement with our Manager was approved by our stockholders (the “Management Agreement” ), and on such date, we entered into the Management Agreement. The Management Agreement provides that our Manager will be compensated for serving as ACSF’s investment adviser at the same rate as in the Prior Management Agreement: an annual rate of 0.80% of our total assets, excluding cash and cash equivalents and net unrealized ~~gain~~appreciation or ~~loss~~depreciation, each as determined under GAAP at the end of the most recently completed fiscal quarter with no incentive fee.

~~Pursuant~~In January 2014, pursuant to the Prior Management Agreement, our Prior Manager agreed to be responsible for certain of our operating expenses in excess of 0.75% of our consolidated net assets, less net unrealized ~~gain~~appreciation or ~~loss~~depreciation, each as ~~defined~~determined under GAAP at the end of the most recently completed fiscal quarter for the first 24 months following the date of our initial public offering (“IPO”) in January 2014 (the “Prior Expense Cap”). The Prior Expense Cap was voluntarily ~~extended by our Prior Manager until the termination of the Prior Management Agreement, and thus the Prior Expense Cap expired on January 3, 2017.~~

Beginning in the first quarter of 2017, our Manager voluntarily agreed to be responsible for certain of our 2017 quarterly other operating expenses in excess of a certain percentage of our consolidated net assets, less net unrealized gain or loss, each as defined under GAAP (individually, for each such quarter , a “Voluntary Expense Cap” and collectively, the “Voluntary Expense Caps”). The first quarter 2017 Voluntary Expense Cap was calculated based on an annual rate of 0.75% of our consolidated net assets less net unrealized gain or loss as of March 31, 2017. The second quarter 2017 Voluntary Expense Cap and third quarter 2017 Voluntary Expense Cap were calculated based on an annual rate of 1.00% of our consolidated net assets less net unrealized gain or loss as of June 30. 2017 and September 30, 2017, respectively.

~~Additionally,~~extended ~~for~~by ~~the fourth quarter of fiscal 2017,~~ our Prior Manager ~~has~~until ~~voluntarily~~the ~~agreed~~termination ~~to be responsible for certain~~ of ~~our quarterly other operating expenses in excess of an annual rate of 1.25% of our consolidated net assets less net unrealized gain or loss as of December 31, 2017, provided that~~ the Prior Management Agreement, ~~remains~~and ~~effective~~thus ~~as of~~ the ~~date~~Prior weExpense ~~file~~Cap ~~our~~expired ~~Annual Report~~ on ~~Form~~January ~~10-K for the fiscal year ended December 31~~3, 2017.

Beginning in the first quarter of 2017, our Manager voluntarily agreed to be responsible for certain of our 2017 quarterly other operating expenses in excess of a certain percentage of our consolidated net assets, less net unrealized gain or loss, each as determined under GAAP (individually, for each such quarter, a “Voluntary Expense Cap” and collectively, the “Voluntary Expense Caps”). The first quarter 2017 Voluntary Expense Cap was calculated based on an annual rate of 0.75% of our consolidated net assets less net unrealized gain or loss as of March 31, 2017. The second quarter 2017 Voluntary Expense Cap and third quarter 2017 Voluntary Expense Cap were calculated based on an annual rate of 1.00% of our consolidated net assets less net unrealized gain or loss as of June 30, 2017 and September 30, 2017, respectively. The fourth quarter 2017 Voluntary Expense Cap was calculated based on an annual rate of 1.25% of our consolidated net assets less net unrealized gain or loss as of December 31, 2017. Our Manager has not agreed to be responsible for any of our operating expenses beyond December 31, 2017.

Investments

Our investment objective is to provide attractive, risk-adjusted returns over the long term primarily through current income while seeking to preserve our capital. Our Manager actively manages our leveraged portfolio composed primarily of diversified investments in first lien and second lien floating rate loans principally to large-market U.S.-based companies (collectively, “SFRLs” or “Loan Portfolio”) which are commonly referred to as leveraged loans. Standard and Poor's (“S&P”) defines large-market loans as loans to issuers with earnings before interest, taxes, depreciation and amortization (“EBITDA”) of greater than $50 million. SFRLs are typically collateralized by a company's assets and structured with first lien or second lien priority on collateral, providing for greater security and potential recovery in the event of default compared to other subordinated fixed-income products. We also invest in debt and equity tranches of collateralized loan obligations (“CLOs”) which are securitized vehicles collateralized primarily by SFRLs. In addition, we may selectively invest in loans issued by middle market companies, mezzanine and unitranche loans and high yield bonds. Additionally, we may from time to time hold or invest in other equity investments and other debt or equity securities generally arising from a restructuring of SFRL positions previously held by us. Under normal market conditions, we will invest at least 80% of our assets in SFRLs.

Our level of investment activity can vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to U.S. based large-market private companies, the level of merger and acquisition activity for such companies, the general economic environment, market conditions and the competitive environment for the types of investments we make. As a BDC, we must not acquire any assets other than “qualifying assets” as defined by Section 55(a) of the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” The definition of “eligible portfolio company” includes private operating companies and certain public companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million, in each case organized under the laws of and with their principal place of business located in the United States. Investments in debt and equity tranches of CLOs are generally deemed non-qualified assets for BDC compliance purposes; therefore, under normal market conditions, we intend to limit our CLO investments to 20% of our portfolio.

Current Market Conditions

Economic and market conditions can impact our business and our investments in multiple ways, including the financial condition of the portfolio companies in which we invest, our investment returns, our funding costs, our access to the capital markets and our access to credit. The leveraged loan market has grown substantially in recent years with the amount of total leveraged loans outstanding exceeding $1 trillion as of September 30, 2017. Growth has largely been a function of the resilient performance of the asset class across multiple credit cycles coupled with the changing regulatory and investor landscape and the attractive floating rate nature of the assets. Despite uncertainties regarding economic and market conditions, the new issue loan pipeline in the leveraged loan market remains active, with first lien and second lien transactions that support leveraged buyouts, strategic acquisitions, plant expansions, recapitalizations and refinancings for mid to large-sized borrowers.

During the nine months ended September 30, 2017, leveraged loan market volumes were strong with over $700 billion of new issuance (including repricings), exceeding 2016 and 2015 full-year levels. Of the total new issuance, over $400 billion was driven by loan refinancings or recapitalizations. In the third quarter of 2017, refinancing activity tailed off while institutional merger and acquisition (“M&A”) activities increased over the prior year driven both by leveraged buyouts (“LBOs”) and non-LBO related M&A activity. Despite sector specific stresses, most notably in retail, the average bid of the S&P/LSTA Leveraged Loan Index was stable at 98.0% of par at September 30, 2017 and June 30, 2017. Through the first nine months of 2017, CLO new issuance has surpassed 2016 full-year levels and is outpacing YTD 2015 issuance. During the third quarter of 2017, CLO new issuance decreased 14% to $30.3 billion from the second quarter of 2017.

Portfolio and Investment Activity

As of ~~September~~March 3031, ~~2017~~2018, our portfolio was comprised of 7775.5% first lien loans, 65.8% second lien loans (collectively, the “Loan Portfolio) and 1718.7% CLO equity (the “CLO Portfolio” and together with the Loan Portfolio, the “Investment Portfolio”), measured at fair value. The Loan Portfolio consisted of ~~136~~121 portfolio companies in 3637 industries, and the CLO Portfolio included 2224 CLOs managed by 17 different collateral managers with vintages ranging from 2012 to 2017. Our Loan Portfolio consisted of all floating rate investments with 9594.97% having LIBOR floors ranging between 0.75% and 1.25%. The weighted average LIBOR floor in our Loan Portfolio was 0.9794% as of ~~September~~March 3031, ~~2017~~2018. The following table depicts a summary of the portfolio as of ~~September~~March 3031, ~~2017~~2018:

($ in thousands)	Cost		Fair Value		Cumulative Net Unrealized Gain (Loss)			Weighted Average Yield at Cost (1)
Investment Portfolio:
First lien floating rate loans	$	177,705	$	175,274	$	(2,431	)	5.40	%
Second lien floating rate loans	14,562		13,263		(1,299		)	8.42	%
Total Loan Portfolio	192,267		188,537		(3,730		)	5.62	%
CLO Portfolio	47,543		39,210		(8,333		)	11.36	%
Common equity	$	—	$	49	$	49		—	%
Warrants	$	—	$	—	$	—		—	%
Total Investment Portfolio	$	239,810	$	227,796	$	(12,014	)	6.76	%



($ in thousands)	Cost		Fair Value		Cumulative Net Unrealized Gain (Loss)			Weighted Average Yield at Cost ⁽¹⁾
Investment Portfolio:
First lien floating rate loans	$	170,798	$	169,620	$	(1,178	)	6.26	%
Second lien floating rate loans	13,835		12,970		(865		)	8.98	%
Total Loan Portfolio	184,633		182,590		(2,043		)	6.46	%
CLO Portfolio	49,401		41,977		(7,424		)	9.96	%
Common equity	—		75		75			—	%
Warrants	—		—		—			—	%
Total Investment Portfolio	$	234,034	$	224,642	$	(9,392	)	7.20	%


(1)	Weighted average yield at cost is computed as (a) the annual stated interest rate or yield earned on accruing debt and other income producing securities, divided by (b) the total investments in such asset type at amortized cost. The weighted average yield of our portfolio does not represent the total return to our stockholders.

The weighted average yield at cost during the three months ended ~~September~~March 3031, ~~2017~~2018 on the Loan Portfolio, the CLO Portfolio and the total investment portfolio was ~~5.61%, 11.07% and~~ 6.6923%, ~~respectively~~10. ~~The weighted average yield at cost during the nine months ended September 30, 2017 on the Loan Portfolio, CLO Portfolio and the Investment Portfolio was 5.52~~64%, ~~12.05%~~ and 67.8115%, respectively.

The Investment Portfolio iswas actively managed, with a turnover ratio of 310.6979% ~~and 46.82%, respectively,~~ for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2017, respectively~~2018. ~~During~~ the three and nine months ended September 30, 2017, the rotation of the Loan Portfolio reflected our Manager’s active management style, which seeks to optimize the portfolio based on current market conditions by rotating into positions that our Manager believes have better relative values. The following tables depict the portfolio activity for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2017~~2018:

	Three Months Ended September 30, 2017															Nine Months Ended September 30, 2017
	Three Months Ended March 31, 2018
($ in thousands)	First Lien			Second Lien			CLO Equity			~~Common~~ Equity			Total			~~First Lien~~			~~Second Lien~~			~~CLO Equity~~			~~Common Equity~~			~~Total~~
Fair value, beginning of period	$	193,136		$	14,733		$	44,111		$	52		$	252,032		$	188,098		$	15,429		$	41,329		$	16		$	244,872
December 31, 2017, at Fair Value	$	170,947		$	14,401		$	43,828		$	64		$	229,240
Purchases	323,~~449~~631			~~2,926~~879			~~2,455~~182			—			824,~~830~~692			~~94,903~~			~~5,767~~			~~11,976~~			—			~~112,646~~
Sales	(1116,~~029~~053		)	(~~955~~1,050		)	(~~3,674~~963		)	—			(1518,~~658~~066		)	~~(46,700~~		)	~~(3,960~~		)	~~(7,355~~		)	(9		)	~~(58,024~~		)
Repayments (1)	(9,~~768~~750		)	(21,~~975~~520		)	(32,~~612~~267		)	—			(1613,~~355~~537		)	~~(59,520~~		)	~~(3,504~~		)	~~(8,673~~		)	—			~~(71,697~~		)
Non-cash income accrual (2)	61			2			1,509			—			1,572			177			13			4,772			—			4,962
Amortization/accretion and CLO income accrual (2)	43			(1		)	1,361			—			1,403
Net realized gain (loss)	(646		)	(29		)	(2,105		)	—			(2,780		)	(161		)	(381		)	(5,509		)	9			(6,042		)
Net realized loss	(447		)	(455		)	(784		)	—			(1,686		)
Net unrealized gain (loss)	71			(439		)	526			(3		)	155			(1,523		)	(101		)	2,670			33			1,079
Net unrealized gain	1,249			716			620			11			2,596
Fair value, end of period	$	175,274		$	13,263		$	39,210		$	49		$	227,796		$	175,274		$	13,263		$	39,210		$	49		$	227,796
March 31, 2018, at Fair Value	$	169,620		$	12,970		$	41,977		$	75		$	224,642

(1) Repayments for CLO equity reflect the amount of cash distributions from CLO investments received during the three ~~and nine~~ months ended ~~September~~March 3031, ~~2017~~2018.

(2) ~~Non-cash~~Includes ~~income accrual includes~~ amortization/accretion of discount/premium on the Loan Portfolio and income accrued on the ~~CLO~~CLOs ~~equity~~ using the effective interest method during the three ~~and nine~~ months ended ~~September~~March 3031, ~~2017~~2018.



	Three Months Ended March 31, 2018
	Loan Portfolio	CLO Equity	Common Equity/Warrants	Total Portfolio
Portfolio companies - December 31, 2017	129	25	1	155
Purchases	13	—	—	13
Complete exit	(21)	(1)	—	(22)
Portfolio companies - March 31, 2018	121	24	1	146

As of December 31, 2017, our portfolio was comprised of 74.6% first lien loans, 6.3% second lien loans and 19.1% CLO equity, measured at fair value. The Loan Portfolio consisted of 129 portfolio companies in 37 industries, and the CLO Portfolio included 25 CLOs managed by 18 different collateral managers with vintages ranging from 2012 to 2017. Our Loan Portfolio consisted of all floating rate investments with 97.1% having LIBOR floors ranging between 0.75% and 1.25%. As of December 31, 2017, the weighted average LIBOR floor in our Loan Portfolio was 0.978% and one-and three-month LIBOR was 1.56% and 1.69%, respectively. The following table depicts a summary of the portfolio as of December 31, 2017:

		Three Months Ended September 30, 2017						Nine Months Ended September 30, 2017
($ in thousands)	Cost			Fair Value			Cumulative Net Unrealized Gain (Loss)				Weighted Average Yield at Cost (1)
		Loan Portfolio	CLO Equity		Common Equity/Warrants	Total Portfolio		Loan Portfolio		CLO Equity		Common Equity/Warrants	Total Portfolio
Investment Portfolio:
Portfolio companies, beginning of period		149	23		1	173		149		21		—	170
First lien floating rate loans	$	173,374		$	170,947		$	(2,427	)		5.84	%
Purchases		4	1		—	5		72		5		—	77
Second lien floating rate loans	15,981			14,401			(1,580		)		8.65	%
Complete exit		(17)	(2)		—	(19)		(84)		(4)		—	(88)
Total Loan Portfolio	189,355			185,348			(4,007		)		6.08	%
Restructure		—	—		—	—		(1)		—		1	—
CLO Portfolio	51,873			43,828			(8,045		)		10.59	%
Portfolio companies, end of period		136	22		1	159		136		22		1	159
Common equity	—			64			64				—	%
Warrants	$	—		$	—		$	—			—	%
Total Investment Portfolio	$	241,228		$	229,240		$	(11,988	)		7.05	%

As of December 31, 2016, our portfolio was comprised of 77% first lien loans, 6% second lien loans and 17% CLO equity, measured at fair value. The Loan Portfolio consisted of 149 portfolio companies in 46 industries, and the CLO portfolio included 21 CLOs managed by 15 different collateral managers. Our Loan Portfolio consisted of all floating rate investments with 100% having LIBOR floors ranging between 0.75% and 1.25%. The weighted average LIBOR floor in our Loan Portfolio was 1.00% as of December 31, 2016. The following table depicts a summary of the Investment Portfolio as of December 31, 2016:

($ in thousands)	Cost		Fair Value		Cumulative Net Unrealized Gain (Loss)			Weighted Average Yield at Cost (1)
Investment Portfolio:
First lien floating rate loans	$	189,009	$	188,098	$	(911	)	5.18	%
Second lien floating rate loans	16,626		15,429		(1,197		)	8.29	%
Total Loan Portfolio	205,635		203,527		(2,108		)	5.43	%
CLO Portfolio	52,330		41,329		(11,001		)	14.14	%
Common equity	—		16		16			—	%
Total Investment Portfolio	$	257,965	$	244,872	$	(13,093	)	7.20	%


(1)	Weighted average yield at cost is computed as (a) the annual stated interest rate or yield earned on accruing debt and other income producing securities, divided by (b) the total investments in such asset type at amortized cost. The weighted average yield of our portfolio does not represent the total return to our stockholders.

The weighted average yield at cost during the three months ended ~~September~~March 3031, ~~2016~~2017 on the Loan Portfolio, the CLO Portfolio and ~~Investment Portfolio (including common equity) was 5.37%, 10.83% and 6.51%, respectively. The average yield during~~ the ~~nine months ended September 30, 2016, on the Loan Portfolio, the CLO Portfolio and~~ Investment Portfolio (including common equity) was 5.4036%, 1014.6414% and 67.5117%, respectively.

The Investment Portfolio was actively managed, with a turnover ratio of 3325.0186% ~~and 35.64%, respectively~~ for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2016~~2017. The following tables depict the portfolio activity for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2016~~2017:

	Three Months Ended September 30, 2016															Nine Months Ended September 30, 2016
	Three Months Ended March 31, 2017
($ in thousands)	First Lien			Second Lien			CLO Equity			Equity			Total			~~First Lien~~			~~Second Lien~~			~~CLO Equity~~			~~Equity~~			~~Total~~
Fair value, beginning of period	$	173,898		$	16,463		$	37,021		$	35		$	227,417		$	169,580		$	22,575		$	36,854		$	47		$	229,056
December 31, 2016, at Fair Value	$	188,098		$	15,429		$	41,329		$	16		$	244,872
Purchases	1560,~~701~~291			21,~~515~~941			—1,540			—			1863,~~216~~772			~~52,719~~			~~5,137~~			~~1,493~~			—			~~59,349~~
Sales	(1233,~~082~~726		)	—(2,509		)	—			—(9		)	(1236,~~082~~244		)	~~(33,147~~		)	~~(1,504~~		)	—			—			~~(34,651~~		)
Repayments (1)	(523,~~256~~570		)	(~~3,147~~464		)	(32,~~365~~646		)	—			(1126,~~768~~680		)	~~(21,118~~		)	~~(10,832~~		)	~~(10,049~~		)	—			~~(41,999~~		)
Non-cash income accrual (2)	65			7			1,910			—			1,982			187			18			5,215			—			5,420
Amortization/accretion and CLO income accrual (2)	72			8			1,835			—			1,915
Net realized gain (loss)	(177		)	23			—			—			(154		)	(1,497		)	44			—			—			(1,453		)
Net realized gain	366			87			—			9			462
Net unrealized gain (loss)	3,595			538			3,290			(28		)	7,395			9,020			961			5,343			(40		)	15,284
Net unrealized loss	(634		)	(93		)	(27		)	(16		)	(770		)
Fair value, end of period	$	175,744		$	16,399		$	38,856		$	7		$	231,006		$	175,744		$	16,399		$	38,856		$	7		$	231,006
March 31, 2017, at Fair Value	$	190,897		$	14,399		$	42,031		$	—		$	247,327

(1) Repayments for CLO equity reflect the amount of cash distributions from CLO investments received during the three ~~and nine~~ months ended ~~September~~March 3031, ~~2016~~2017.

(2) ~~Non-cash~~Includes ~~income accrual includes~~ amortization/accretion of discount/premium on the Loan Portfolio and income accrued on the CLOs using the effective interest method during the three ~~and nine~~ months ended ~~September~~March 3031, ~~2016~~2017.



	Three Months Ended March 31, 2017
	Loan Portfolio	CLO Equity	Total Portfolio
Portfolio companies - December 31, 2016	149	21	170
Purchases	44	1	45
Complete exit	(36)	—	(36)
Portfolio companies - March 31, 2017	157	22	179

	Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
	Loan Portfolio	CLO Equity	Total Portfolio	Loan Portfolio	CLO Equity	Total Portfolio
Portfolio companies,beginning of period	134	22	156	128	20	148
Purchases	14	—	14	46	2	48
Complete exit	(8)	—	(8)	(34)	—	(34)
Portfolio companies, end of period	140	22	162	140	22	162

As of March 31, 2018, approximately 64.6% of our Loan Portfolio, at fair value, was comprised of loans with a facility rating by S&P of at least “B” or higher. The following chart shows the S&P facility credit rating of our rated Loan Portfolio at fair value as of March 31, 2018:

As of September 30, 2017, approximately 66.3% of our Loan Portfolio, at fair value, was comprised of loans with a facility rating by S&P of at least “B” or higher. As of September 30, 2017, approximately 1.9% of our Loan Portfolio, at fair value was not rated by S&P. The following chart shows the S&P facility credit rating of our rated Loan Portfolio at fair value as of September 30, 2017:



	First Lien		Second Lien

36(1) As a percentage of the total Loan Portfolio, excluding non-rated loans which represent 1.3% of the total Loan Portfolio.

Results of Operations

Operating results for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2017~~2018 and ~~2016~~2017 were as follows:

		Three Months Ended September 30,							Nine Months Ended September 30,
	Three Months Ended March 31,
($ in thousands)	2018	~~2017~~			2017	~~2016~~			~~2017~~			~~2016~~
Investment income:
Senior floating rate loans	$	$2,860	~~2,891~~		$	$2,777	~~2,679~~		$	~~8,359~~		$	~~7,990~~
CLO equity	1,218	~~1,509~~			1,835	~~1,910~~			~~4,772~~			~~5,216~~
Total investment income	4,078	~~4,400~~			4,612	~~4,589~~			~~13,131~~			~~13,206~~
Expenses:
Interest and other debt related costs	899	~~891~~			733	~~665~~			~~2,393~~			~~1,969~~
Management fee	469	~~497~~			531	~~512~~			~~1,561~~			~~1,520~~
Other operating expenses	495	~~417~~			713	~~564~~			~~1,672~~			~~1,814~~
Total expenses	1,863	~~1,805~~			1,977	~~1,741~~			~~5,626~~			~~5,303~~
Expense reimbursement	—	~~(59~~		)	(437	~~(283~~	)	)	~~(673~~		)	~~(976~~		)
Net expenses	1,863	~~1,746~~			1,540	~~1,458~~			~~4,953~~			~~4,327~~
Net investment income before taxes	2,215	~~2,654~~			3,072	~~3,131~~			~~8,178~~			~~8,879~~
Income tax (provision) benefit		(5		)		(23		)	(33		)	75
Income tax provision, including excise tax	—				(19		)
Net investment income	2,215	~~2,649~~			3,053	~~3,108~~			~~8,145~~			~~8,954~~
Net realized and unrealized gain (loss) on investments:
Net realized loss on investments		(2,785		)		(154		)	(6,058		)	(1,453		)
Net realized gain (loss) on investments	(1,686		)		462
Net unrealized gain on investments		157				7,395			1,079			15,284
Net unrealized gain (loss) on investments	2,596				(763		)
Net gain (loss) on investments	910	~~(2,628~~		)	(301	~~7,241~~	)		~~(4,979~~		)	~~13,831~~
Net increase in net assets resulting from operations (“Net Earnings”)	$	$3,125	21		$	$2,752	~~10,349~~		$	~~3,166~~		$	~~22,785~~

Investment Income

Investment income decreased $0.25 million, or 412%, to $4.41 million for the three months ended ~~September~~March 3031, ~~2017~~2018 compared to the comparable period in ~~2016~~2017. The decrease was a result of a smaller Investment Portfolio, on average, during the ~~third~~first quarter of ~~2017~~2018 compared to the comparable period in ~~2016~~2017. The weighted average yield at cost on our Loan Portfolio, CLO Portfolio and Investment Portfolio was 56.6123%, 1110.0764% and 67.6915%, respectively, during the three months ended ~~September~~March 3031, ~~2017~~2018, as compared to 5.3736%, 1014.8314% and 67.5117%, respectively, during the three months ended ~~September~~March 3031, ~~2016~~2017.

Investment income decreased $0.1 million, or 1% for the nine months ended September 30, 2017 compared to the comparable period in 2016. The decrease was due to a smaller Investment Portfolio, on average, during the first nine months of 2017 compared to the comparable period in 2016. The weighted average yield at cost on our Loan Portfolio, CLO Portfolio and Investment Portfolio was 5.52%, 12.05% and 6.81%, respectively, during the nine months ended September 30, 2017, as compared to 5.40%, 10.64% and 6.51%, respectively during the nine months ended September 30, 2016.

Net Expenses

For the three months ended ~~September~~March 3031, ~~2017~~2018, net expenses increased $0.3 million, or 1921.80%, to $1.79 million as compared to the comparable period in ~~2016~~2017. The increase in net expenses was primarily driven by ~~an increase in interest expense due to an increase in LIBOR as well as an increase in net operating expenses after~~ the ~~expense~~expiration, ~~reimbursement~~by ~~due~~its toterms, anof ~~increase in~~ the Voluntary Expense Cap ~~rate~~and inan ~~the~~increase ~~third quarter of 2017, thus resulting~~ in ainterest ~~lower~~ expense ~~reimbursement~~mainly ~~from~~due ~~our Manager as compared~~ to ~~the~~increasing ~~Prior~~LIBOR ~~Expense Cap that resulted in a higher expense reimbursement from our Prior Manager~~rates.

~~For~~The ~~the~~following ~~nine~~table ~~months~~outlines ~~ended September 30, 2017, net expenses increased $0.6 million, or 14%, to $5.0 million as compared to~~ the ~~comparable~~costs ~~period~~associated inwith ~~2016.~~our ~~The~~Credit ~~increase~~Facility ~~in net expenses was primarily driven by an increase in interest expense due to an increase in LIBOR~~ (as ~~well~~defined asbelow) anduring ~~increase in net operating expenses after~~ the ~~expense~~three ~~reimbursement~~months ~~due~~ended toMarch 31, an2018 ~~increase~~and ~~in the Voluntary Expense Cap rate in the third quarter of~~ 2017,: ~~thus resulting in a lower expense reimbursement from our Manager as compared to the Prior Expense Cap that resulted in a higher expense reimbursement from our Prior Manager.~~



	For the Three Months Ended March 31,
($ in thousands)	2018			2017
Interest expense	$	801		$	643
Commitment fees	75			67
Amortization of deferred financing costs	23			23
Total interest and other debt related costs	$	899		$	733

Weighted average debt outstanding	$	95,434		$	99,244
Weighted average cost of funds ⁽¹⁾	3.77		%	2.90		%
Weighted average stated interest rate	3.34		%	2.59		%

The following table outlines the costs associated with our Credit Facility during the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands)	2017			2016			2017			2016
Interest expense	$	811		$	572		$	2,122		$	1,699
Commitment fees	57			70			202			201
Amortization of deferred financing costs	23			23			69			69
Total debt financing costs	$	891		$	665		$	2,393		$	1,969
Weighted average debt outstanding	$	104,850		$	98,496		$	99,383		$	99,873
Weighted average cost of funds (1)	3.29		%	2.68		%	3.16		%	2.63		%
Weighted average stated interest rate	3.02		%	2.27		%	2.81		%	2.24		%

(1) Includes interest, unfunded commitment fees and amortization of debt financing costs.

Net Realized Gain (Loss) on Investments

Sales and repayments of investments during the three months ended ~~September~~March 3031, ~~2017~~2018 totaled $3231.06 million resulting in a net realized loss on investments of $21.87 million. Sales and repayments of investments during the ~~nine~~three months ended ~~September~~March 3031, 2017 totaled $~~129~~62.79 million resulting in a net realized ~~loss~~gain on investments of $60.15 million.

Sales and repayments of investments during the three months ended September 30, 2016 totaled $23.9 million resulting in a net realized loss on investments of $0.2 million. Sales and repayments of investments during the nine months ended September 30, 2016 totaled $76.7 million resulting in a net realized loss on investments of $1.5 million.

Net Unrealized Gain (Loss) on Investments

During the three months ended ~~September~~March 3031, ~~2017~~2018, we recognized a net unrealized gain on investments of $0.2.6 million composed of the reversal of net unrealized depreciation related to a net realized loss of $2.20 million and a net unrealized ~~loss~~appreciation on investments of $20.6 million. During the three months ended March 31, 2017, we recognized a net unrealized loss on investments of $0.8 million primarily composed of the reversal of net unrealized appreciation related to net realized gains of $0.5 million and net unrealized depreciation on investments of $0.3 million.

During the three months ended September 30, 2016, we recognized a net unrealized gain on the investment portfolio of $7.4 million composed of the reversal of net unrealized depreciation related to a net realized loss of $0.2 million and net unrealized appreciation on investments of $7.2 million. The net unrealized appreciation was driven by net unrealized appreciation of $3.9 million on the Loan Portfolio and $3.3 million of net unrealized appreciation on the CLO Portfolio. The primary driver for the increase in fair value of the Loan Portfolio was higher prices in the broadly syndicated U.S. loan market as a result of improved loan issuance and tightening yields during the quarter. The increase in fair value of the CLO Portfolio was a result of tightening spreads and increasing trades in CLO equity.

During the nine months ended September 30, 2017, we recognized a net unrealized gain on investments of $1.1 million primarily composed of the reversal of net unrealized depreciation related to a net realized loss of $4.8 million and net unrealized depreciation on investments of $3.7 million.

During the nine months ended September 30, 2016, we recognized a net unrealized gain on the investment portfolio of $15.3 million composed of the reversal of net unrealized depreciation related to net realized losses of $1.1 million and net unrealized appreciation on investments of $14.2 million. The net unrealized appreciation of $14.2 million was driven by net unrealized appreciation of $8.8 million on the Loan Portfolio and a $5.4 million net unrealized appreciation on the CLO Portfolio. The primary driver for the increase in fair value of the Loan Portfolio was higher prices in the broadly syndicated U.S. loan market as a result of improved inflows and tightening yields during the nine months ended September 30, 2016. The increase in fair value of the CLO Portfolio was a result of tightening spreads and increasing trades in CLO equity.

Income Taxes

We have elected to be treated as a RIC for U.S. federal income tax purposes. In order to qualify as a RIC, among other things, we are required to ~~meet~~timely ~~certain~~distribute ~~source~~to ofour ~~income~~shareholders ~~and asset diversification requirements; additionally, we must distribute annually~~ at least 90% of our ~~ordinary~~investment company taxable income, as defined by the Code, including net short term gains in excess of net long term losses. So long as we qualify as a RIC, we ~~generally~~ are not subject to the entity level taxes on earnings timely distributed to our stockholders. At ~~our~~In ~~discretion,~~order weto ~~may~~maintain ~~delay distributions of a portion of~~ our ~~current~~RIC ~~year~~status, ~~taxable~~we ~~income~~have tomade ~~the subsequent year~~ and ~~pay~~intend 4%to ~~excise~~continue ~~taxes~~to onmake ~~such~~the ~~deferred~~requisite distributions asto ~~calculated~~our ~~under~~stockholders ~~the~~which ~~Code.~~will Ifgenerally werelieve ~~anticipate~~us ~~paying~~from ~~excise~~U.S. ~~taxes,~~federal wecorporate-level ~~accrue~~income ~~excise~~ taxes ~~on a quarterly basis based on our estimates~~.

38At our discretion, we may delay distributions of a portion of our current year taxable income to the subsequent year and pay 4% excise taxes on such deferred distributions, as required, as calculated under the Code. If we anticipate paying

excise taxes, we accrue excise taxes on a quarterly basis based on our estimates. For the three months ended March 31, 2018 and 2017, we recorded an expense of $0 and $19, respectively, for U.S. federal excise tax.

Financial Condition, Liquidity and Capital Resources

Liquidity and capital resources arise primarily from our cash flows from operations, borrowings from ~~our~~the ~~wholly~~Credit ~~owned~~Facility ~~subsidiary’s~~(as ~~secured~~defined ~~revolving~~below) ~~credit facility~~ and any follow-on equity offerings of common stock and other supplementary financing mechanisms.

In order to qualify as a RIC, we must annually distribute in a timely manner to our stockholders at least 90% of our taxable ordinary income. In addition, we must also distribute in a timely manner to our stockholders all of our taxable ordinary and capital income in order to not be subject to income taxes. Accordingly, our ability to retain earnings is limited.

We regularly engage in discussions with respect to exploring and evaluating a broad range of transactions to enhance

long-term shareholder value. Consummation of any such transaction would be subject to completion of due diligence, finalization of key business and financial terms and negotiation of final definitive documentation as well as a number of other factors and conditions including, without limitation, the approval of our Board and required regulatory or third party consents and, in certain cases, the approval of our stockholders.

Equity Capital

As a BDC, we are generally not able to issue or sell our common stock at a price below our net asset value per share, exclusive of any underwriting discount, except (i) with the prior approval of a majority of our stockholders, (ii) in connection with a rights offering to our existing stockholders or (iii) under such other circumstances as the SEC may permit. As of ~~September~~March 3031, ~~2017~~2018, our net asset value was $13.1211 per share and our closing market price was $11.5015 per share.

Debt Capital

Our wholly owned special purpose financing vehicle, ACSF Funding I, LLC, a Delaware limited liability company, (“ACSF Funding”) is party to a secured revolving credit facility with Bank of America, N.A. (as amended and restated, the “Credit Facility”). Under the Credit Facility, ACSF Funding can borrow up to $135 million with a maturity date of December 18, 2018. The Credit Facility generally bears interest at the London Interbank Offered Rate (“LIBOR”) plus 1.80% and also has a commitment fee equal to 0.75% on the unused amount of the commitments to the extent the outstanding amount of loans is less than 90% of the aggregate commitments. The Credit Facility is secured by ACSF Funding’s assets pursuant to a security agreement and contains customary financial and negative covenants and events of default. Advance rates vary on the type of collateral owned by ACSF Funding and can range up to 80%. On ~~January~~See 3,"Recent ~~2017~~Developments," ~~ACSF~~as ~~Funding~~well ~~entered~~as ~~into~~Note 11 anto ~~amendment~~our toconsolidated ~~the~~financial ~~documents~~statements ~~governing~~for the ~~Credit~~three ~~Facility~~months ~~that~~ended ~~amended~~March ~~the~~31, ~~relevant~~2018 ~~provisions~~for ofa ~~the~~subsequent ~~Credit~~event ~~Facility~~regarding toa ~~reflect~~downsize ~~the appointment~~ of ~~our~~the ~~Manager~~Credit ~~as our new investment adviser~~Facility.

As of ~~September~~March 3031, ~~2017~~2018, we had $9693.8 million in borrowings outstanding on our Credit Facility. The fair value of the assets owned by ACSF Funding as of ~~September~~March 3031, ~~2017~~2018 was $~~188~~182.56 million and the borrowing base was $~~143~~137.46 million. On a consolidated basis, as of ~~September~~March 3031, ~~2017~~2018, ACSF’s ratio of our principal debt outstanding to stockholders’ equity was 0.7472 to 1. As of ~~September~~March 3031, ~~2017~~2018, we had approximately $3841.2 million of available capacity on our Credit Facility.

As a BDC, we are currently permitted to issue “senior securities,” as defined in the 1940 Act, in any amount as long as immediately after such issuance our asset coverage is at least 200%, or equal to or greater than our asset coverage prior to such issuance, after taking into account the payment of debt with proceeds from such issuance. Asset coverage is defined in the 1940 Act as the ratio of the value of the total assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. However, if our asset coverage is below 200%, we may also borrow amounts up to 5% of our total assets for temporary purposes even if that would cause our asset coverage ratio to further decline. On March 23, 2018 the SBCAA was signed into law. The SBCAA, among other things, modifies the applicable provisions of the Investment Company Act to reduce the required asset coverage ratio applicable to BDCs from 200% to 150% subject to certain approval, time and disclosure requirements (including either stockholder approval or approval of a majority of the directors who are not interested persons of the BDC and who have no financial interest in the proposal). As of ~~September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017, our asset coverage was ~~236~~240% and ~~230~~250%, respectively.

Off-Balance Sheet Arrangements

Commitments to extend credit include loans we are obligated to advance, such as delayed draws or revolving credit arrangements. Commitments generally have fixed expiration dates or other termination clauses. We do not report the unused portion of these commitments on our Consolidated Statements of Assets and Liabilities. As of ~~both September~~March 3031, ~~2017~~2018 and December 31, ~~2016~~2017, we had $0.18 million and $0.6 million, respectively, of outstanding unused loan commitments.

Distributions to Stockholders

The timing and amount of our distributions, if any, will be determined by our Board. When determining distributions to stockholders, our Board considers estimated taxable income, GAAP income and economic performance. Actual taxable income may differ from GAAP income due to temporary and permanent differences in income and expense recognition and changes in unrealized appreciation and depreciation on investments. All distributions to our stockholders are declared out of assets legally available for distribution. We expect that our distributions to stockholders will generally be from accumulated net investment income and from net realized capital gains, if any, as applicable. To the extent our taxable earnings fall below the total amount of our distributions for any given fiscal year, a portion of those distributions may be deemed to be a tax return of capital to our stockholders. Thus, the source of a distribution to our stockholders may be the original capital invested by the stockholder rather than our taxable ordinary income or capital gains. Stockholders should read any written disclosure accompanying a distribution payment carefully and should not assume that the source of any distribution is our taxable ordinary income or capital gain. The specific tax characteristics are reported to stockholders on Form 1099 after the end of each calendar year.

39We have elected to be taxed as a RIC under Subchapter M of the Code. To maintain our RIC status, we must distribute at least 90% of our ordinary taxable income and the excess of net short term gains over net long term losses, if any, out of the assets legally available for distribution. During the three months ended March 31, 2018 and 2017, 100% of our distributions were made from net investment income. A written statement identifying the nature of these distributions for tax reporting purposes for the year was posted on our website. We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amounts of these distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage requirements applicable to us as a BDC under the 1940 Act. If we do not distribute a certain percentage of our income annually, we will suffer adverse tax consequences, including possible loss of favorable RIC tax treatment. We cannot assure stockholders that they will receive any distributions.

WeThe ~~have~~table ~~elected~~below todetails ~~be taxed as a RIC under Subchapter M of~~ the ~~Code.~~distributions Toto ~~maintain~~stockholders ~~our~~declared ~~RIC~~on ~~status, we must distribute at least 90% of~~ our ~~ordinary~~shares ~~income and the excess~~ of ~~net~~common ~~short~~stock ~~term~~during ~~gains over~~ the ~~net~~three ~~long~~months ~~term losses, if any, out of the assets legally available for distribution. During the years~~ ended ~~December~~ March 31, ~~2016~~2018 and ~~2015~~March 31, ~~100%~~2017 of($ ~~our~~in ~~distributions~~thousands ~~were~~except ~~made from net investment income. A written statement identifying the nature of these distributions~~ for ~~tax~~per ~~reporting~~share ~~purposes~~data): for the year was posted on our website. We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amounts of these distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage requirements applicable to us as a BDC under the 1940 Act. If we do not distribute a certain percentage of our income annually, we will suffer adverse tax consequences, including possible loss of favorable RIC tax treatment. We cannot assure stockholders that they will receive any distributions.

The table below details the distributions to stockholders declared on our shares of common stock during the nine months ended September 30, 2017 and 2016 ($ in thousands except for per share data):



($ in thousands, except per share data)
Monthly Declaration Date	Ex-Dividend Date	Record Date	Payment Date	Per Share Amount		Total Amount
January 18, 2018	February 20, 2018	February 22, 2018	March 5, 2018	$	0.097	$	970
January 18, 2018	March 16, 2018	March 20, 2018	April 4, 2018	0.097		$	970
January 18, 2018	April 17, 2018	April 19, 2018	May 2, 2018	0.097		$	970
Total declared during the three months ended March 31, 2018				$	0.291	$	2,910

February 3, 2017	February 15, 2017	February 17, 2017	March 2, 2017	$	0.097	$	970
February 3, 2017	March 21, 2017	March 23, 2017	April 4, 2017	0.097		970
February 3, 2017	April 18, 2017	April 20, 2017	May 2, 2017	0.097		970
Total declared during the three months ended March 31, 2017				$	0.291	$	2,910

($ in thousands, except per share data)
Monthly Declaration Date	Ex-Dividend Date	Record Date	Payment Date	Per Share Amount		Total Amount
February 3, 2017	February 15, 2017	February 17, 2017	March 2, 2017	$	0.097	$	970
February 3, 2017	March 21, 2017	March 23, 2017	April 4, 2017	0.097		970
February 3, 2017	April 18, 2017	April 20, 2017	May 2, 2017	0.097		970
May 10, 2017	May 22, 2017	May 24, 2017	June 2, 2017	0.097		970
May 10, 2017	June 21, 2017	June 23, 2017	July 6, 2017	0.097		970
May 10, 2017	July 20, 2017	July 24, 2017	August 2, 2017	0.097		970
August 8, 2017	August 22, 2017	August 24, 2017	September 5, 2017	0.097		970
August 8, 2017	September 20, 2017	September 22, 2017	October 4, 2017	0.097		970
August 8, 2017	October 19, 2017	October 23, 2017	November 2, 2017	0.097		970
Total declared during the nine months ended September 30, 2017				$	0.873	$	8,730
February 8, 2016	February 17, 2016	February 19, 2016	March 2, 2016	$	0.097	$	970
February 8, 2016	March 21, 2016	March 23, 2016	April 4, 2016	0.097		970
February 8, 2016	April 19, 2016	April 21, 2016	May 3, 2016	0.097		970
May 2, 2016	May 19, 2016	May 23, 2016	June 2, 2016	0.097		970
May 2, 2016	June 21, 2016	June 23, 2016	July 5, 2016	0.097		970
May 2, 2016	July 19, 2016	July 21, 2016	August 2, 2016	0.097		970
August 3, 2016	August 19, 2016	August 23, 2016	September 2, 2016	0.097		970
August 3, 2016	September 19, 2016	September 22, 2016	October 4, 2016	0.097		970
August 3, 2016	October 19, 2016	October 21, 2016	November 2, 2016	0.097		970
Total declared during the nine months ended September 30, 2016				$	0.873	$	8,730

We maintain an “opt out” dividend reinvestment and stock purchase plan for our common stockholders. As a result, if we declare a distribution, then stockholders' cash distributions will be automatically reinvested in additional shares of our common stock, unless they, or their nominees on their behalf, specifically “opt out” of the dividend reinvestment and stock purchase plan so as to receive cash distributions. Stockholders that opt out of our dividend reinvestment and stock purchase plan may experience dilution over time.

Recent Developments

Plan of Complete Liquidation and Dissolution

On May 4, 2018, our board of directors approved a Plan of Complete Liquidation and Dissolution (the “Plan”) of ACSF that includes the sale of all or substantially all of our assets and distribution of the net proceeds to our stockholders, after which ACSF will be dissolved. The Plan is subject to the approval of the stockholders, which our board of directors plans to seek at a special meeting called for the purpose of approving the Plan, as detailed in the preliminary proxy statement filed with the SEC on the date hereof. If ACSF’s stockholders approve the Plan, we intend to, among other things, convert all or substantially all of our assets into cash, pay all of our other known liabilities and make provisions for contingent liabilities, and make one or more distributions to our stockholders of cash available for distribution.

Critical Accounting Policies

See “Note 2 - Significant Accounting Policies” and “Note 6 - Investments” to our consolidated financial statements for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2017~~2018, which describes our critical accounting policies. The recently issued accounting pronouncements not yet required to be adopted by us are as follows.

New Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which amends the financial instruments impairment guidance so that an entity is required to measure expected credit losses for financial assets based on historical experience, current conditions, and reasonable and supportable forecasts. As such, an entity will use forward-looking information to estimate credit losses. ASU 2016-13 also amends the guidance in FASB ASC Subtopic No. 325-40, Investments-Other, Beneficial Interests in Securitized Financial Assets related to the subsequent measurement of accretable yield recognized as interest income over the life of a beneficial interest in securitized financial assets under the effective yield method. ASU 2016-13 is effective for public business entities that meet the U.S. GAAP definition of an SEC filer, for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the impact of ASU 2016-13 on the recognition of interest income on our investments in CLO equity.

2016-13 also amends the guidance in FASB ASC Subtopic No. 325-40, Investments-Other, Beneficial Interests in Securitized Financial Assets related to the subsequent measurement of accretable yield recognized as interest income over the life of a beneficial interest in securitized financial assets under the effective yield method. ASU 2016-13 is effective for public business entities that meet the U.S. GAAP definition of an SEC filer, for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the impact of ASU 2016-13 on the recognition of interest income on our investments in CLO equity.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) (“ASU 2016-15”), which addresses the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under ASC 230, Statement of Cash Flows, and other topics. The update provides guidance on eight specific cash flow issues including the statement cash flows treatment of beneficial interests in securitized financial transactions as well as the treatment of debt prepayment and extinguishment costs. ASU 2016-15 also provides guidance on the predominance principle to clarify when cash receipts and cash payments should be separated into more than one class of cash flows. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the impact of ASU 2016-15 on our consolidated statements of cash flows.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are subject to financial market risks, including changes in interest rates. As of ~~September~~March 3031, ~~2017~~2018, all of our ~~debt~~Loan ~~investments~~Portfolio bore interest at floating rates, and we expect that our ~~investment~~Investment ~~portfolio~~Portfolio will, in the future, primarily include floating rate debt investments. The interest rates on our ~~debt~~Loan ~~investments~~Portfolio are usually based on a floating LIBOR, and ~~the debt investments~~ typically contain interest rate reset provisions that adjust applicable interest rates to current rates on a periodic basis. As of ~~September~~March 3031, ~~2017~~2018, ~~95.9% of~~ the ~~debt~~Loan ~~investments~~Portfolio inconsisted ~~our~~of ~~portfolio~~all atfloating ~~fair~~rate ~~value~~investments ~~had~~with 94.7% ~~interest~~having ~~rate~~LIBOR floors ranging between 0.75% and 1.25%. In ~~contrast~~As of March 31, 2018, the benchmark LIBOR used to set borrowing rates on our Loan Portfolio was generally above the interest rate floors and therefore our Loan Portfolio will generally fluctuate with changes in short term interest rates, subject to the interest rate floors in place. The Credit Facility has a floating interest rate provision with no LIBOR floor, and therefore, our cost of funds will fluctuate with changes in short-term interest rates.

Assuming no changes to our consolidated statement of assets and liabilities as of ~~September~~March 3031, ~~2017~~2018, (including no change to borrowing spreads), the following table shows the approximate annualized impact to the components of our results of operations from hypothetical base rate changes in interest rates to our Loan Portfolio and ~~debt~~the ~~financing~~Credit Facility.

($ in thousands except per share data)Basis point change in base rate	Interest income			Interest expense			Net change to Net Earnings		Net change to Net Earnings per share
300	$	5,762		$	2,904		$	2,858	$	0.29
200	$	3,841		$	1,936		$	1,905	$	0.19
100	$	1,921		$	968		$	953	$	0.10
(100)	$	(691	)	$	(968	)	$	277	$	0.03
(200)	$	(706	)	$	(1,193	)	$	487	$	0.05
(300)	$	(706	)	$	(1,193	)	$	487	$	0.05

Based on our consolidated statement of assets and liabilities as of December 31, 2016, the following table shows the approximate annualized impact to the components of our results of operations from hypothetical base rate changes in interest rates to our Loan Portfolio and debt financing.



($ in thousands except per share data) Basis Point Increase (Decrease)	Interest income			Interest expense			Net Increase (Decrease)			Net Increase (Decrease) per share
300	$	5,579		$	2,754		$	2,825		$	0.28
200	$	3,719		$	1,836		$	1,883		$	0.19
100	$	1,860		$	918		$	942		$	0.09
(100)	$	(1,860	)	$	(918	)	$	(942	)	$	(0.09	)
(200)	$	(2,510	)	$	(1,729	)	$	(781	)	$	(0.08	)
(300)	$	(2,537	)	$	(1,729	)	$	(808	)	$	(0.08	)

($ in thousands, except per share data)Basis point change in base rate	Interest Income			Interest Expense			Net change to Net Earnings		Net change to Net Earnings per share
300	$	6,071		$	3,147		$	2,924	$	0.29
200	$	4,010		$	2,098		$	1,912	$	0.19
100	$	1,949		$	1,049		$	900	$	0.09
(100)	$	(12	)	$	(45	)	$	33	$	—
(200)	$	(12	)	$	(45	)	$	33	$	—
(300)	$	(12	)	$	(45	)	$	33	$	—

Based on our consolidated statement of assets and liabilities as of December 31, 2017, (including no change to borrowing spreads), the following table shows the approximate annualized impact to the components of our results of operations from hypothetical base rate changes in interest rates to our Loan Portfolio and the Credit Facility.



($ in thousands except per share data) Basis Point Increase (Decrease)	Interest income			Interest expense			Net Increase (Decrease)			Net Increase (Decrease) per share
300	$	5,712		$	2,625		$	3,087		$	0.31
200	$	3,808		$	1,750		$	2,058		$	0.21
100	$	1,904		$	875		$	1,029		$	0.10
(100)	$	(1,340	)	$	(875	)	$	(465	)	$	(0.05	)
(200)	$	(1,363	)	$	(1,369	)	$	6		$	—
(300)	$	(1,363	)	$	(1,369	)	$	6		$	—

Although management believes that this measure is indicative of our sensitivity to interest rates, it does not reflect any potential impact to the fair value of our investments as a result of changes to interest rates, nor does it adjust for potential changes in the credit market, credit quality, size and composition of assets in our consolidated statements of assets and liabilities and other business developments that could affect the net increase/(decrease) in net assets resulting from operations or net investment income. Accordingly, no assurances can be given that actual results would not differ materially from those shown above.

The above sensitivity analysis does not include our CLO Portfolio. Our CLO Portfolio comprises levered structures that are collateralized primarily with first lien floating rate loans that may have LIBOR floors and are levered primarily with floating rate debt that does not have a LIBOR floor. The residual cash flows available to the equity holders of the CLOs will decline as interest rates increase until interest rates surpass the LIBOR floors on the floating rate loans. However, the revenue recognized on our CLO Portfolio is calculated using the effective interest method which incorporates a forward LIBOR curve in the projected cash flows. Any change to interest rates that is not in-line with the forward LIBOR curve used in the projections, in either the timing or magnitude of the change, will cause actual distributions to differ from the current projections and will impact the related revenue recognized from these investments.

~~Although~~The ~~management~~below ~~believes~~graph ~~that~~illustrates ~~this measure is indicative of our sensitivity to interest rates, it does not reflect any potential impact to~~ the ~~fair~~forward ~~value~~LIBOR ofcurve ~~our~~utilized ~~investments as a result of changes to interest rates, nor does it adjust for potential changes~~ in ~~spreads or changes in~~ the ~~credit~~projected ~~market,~~cash ~~credit~~flows ~~quality,~~from ~~size and composition of the assets in~~ our ~~consolidated~~CLO ~~statements~~Portfolio as of ~~assets~~March 31, ~~and liabilities and other business developments that could affect the net increase/~~2018(~~decrease~~1) ~~in net assets resulting from operations or net investment income~~. ~~Accordingly,~~ ~~no assurances can be given that actual results would not differ materially from those shown above.~~

~~The~~(1) ~~above~~Forward ~~sensitivity analysis does not include our CLO equity investments. CLO equity investments are levered structures that are collateralized primarily with first lien floating rate loans that may have~~ LIBOR ~~floors~~curve ~~and~~used ~~are~~to ~~levered~~develop ~~primarily~~the ~~with floating rate debt that does not have a LIBOR floor. The residual~~ cash flows ~~available~~incorporated toin the ~~equity~~March ~~holders of the CLOs will decline as interest rates increase until interest rates surpass the LIBOR floors on the floating rate loans. However~~31, ~~the~~2018 ~~revenue~~valuations ~~recognized~~and ~~on our CLO equity investments is calculated using~~ the ~~effective interest method which incorporates a forward LIBOR curve in the projected~~ cash flows~~. Any~~ ~~change~~used to ~~base~~calculate ~~interest rates that is not in-line with~~ the ~~forward~~effective ~~LIBOR~~yield ~~curve~~at ~~used~~cost inas ~~the~~of ~~projections~~March 31, in2018. ~~either~~Source: ~~the~~Bloomberg ~~timing~~as ~~or magnitude~~ of ~~the~~April ~~change~~16, ~~or change in spreads will cause actual distributions to differ from the current projections and will impact the related revenue recognized from these investments~~2018.

~~The below graph illustrates the forward LIBOR curve utilized in the projected cash flows from our CLO equity investments as of September 30, 2017(1).~~ 42

(1) Forward LIBOR curve used to develop the cash flows incorporated in the September 30, 2017 valuations and the cash flows used to calculate the effective yield at cost as of September 30, 2017. Source: Bloomberg as of October 17, 2017.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

AsWe ofmaintain ~~September 30, 2017, we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our~~ disclosure controls and procedures (as that term is defined in ~~Rule~~ Rules 13a-‑15(e) ofand ~~the~~15d‑15(e) ~~Securities~~under ~~Exchange Act of 1934, as amended (~~the “Exchange Act”)). ~~Based on~~ that ~~evaluation,~~are ~~our~~designed ~~management,~~to ~~including~~ensure ~~the Chief Executive Officer and Chief Financial Officer, concluded~~ that ~~our disclosure controls and procedures were effective and provided reasonable assurance that~~ information required to be disclosed in our ~~periodic~~reports ~~SEC~~under ~~filings~~the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our ~~Chief~~principal ~~Executive~~executive ~~Officer~~officer and ~~Chief~~principal ~~Financial~~financial ~~Officer~~officer, as appropriate, to allow timely decisions regarding required ~~disclosure~~disclosures. ~~However,~~Any ~~in evaluating the disclosure~~ controls and procedures, ~~management recognized that any controls and procedures,~~ no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Our management, with the participation of our principal executive officer and ~~management~~principal ~~necessarily~~financial ~~was~~officer, ~~required~~has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2018. Based upon that evaluation and subject to ~~apply~~the ~~its~~foregoing, ~~judgment~~our inprincipal ~~evaluating~~executive officer and principal financial officer concluded that, as of March 31, 2018, the ~~cost-benefit~~design ~~relationship~~and operation of ~~such~~our ~~possible~~disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There have been no changes in our “internal control over financial reporting” (as defined in Rule 13a-‑15(f) ofand 15d‑15(f) under the Exchange Act) ~~that occurred~~ during ~~our~~the quarter ended ~~September~~ 30March 31, ~~2017~~ 2018 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may be a party to certain ordinary routine litigation incidental to our business, including the enforcement of our rights under contracts with our portfolio companies. We are not currently subject to any material litigation nor, to our knowledge, is any material litigation threatened against us.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the risk factor discussed below and the risk factors described in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016~~2017, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K and discussed below are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

The Small Business Credit Availability Act may allow us to incur additional leverage, which may increase the risk of investing with us.

On March 23, 2018, the SBCAA was signed into law. The SBCAA, among other things, modifies the applicable provisions of the Investment Company Act to reduce the required asset coverage ratio applicable to BDCs from 200% to 150% subject to certain approval, time and disclosure requirements (including either stockholder approval or approval of a majority of the directors who are not interested persons of the BDC and who have no financial interest in the proposal). If we were to seek and obtain the requisite approval to reduce the required asset coverage ratio applicable to us, we would be able to incur additional leverage in the future, and the risks associated with an investment in us may increase.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits, Financial Statement Schedules

The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the SEC:



Exhibit Number		Description

*3.1		American Capital Senior Floating, Ltd. Articles of Amendment and Restatement, incorporated herein by reference to Exhibit 3.1 of Form 10-Q for the quarter ended March 31, 2014 (File No. 814-01025), filed May 15, 2014.

*3.2		American Capital Senior Floating, Ltd. Amended and Restated Bylaws, incorporated herein by reference to Exhibit 3.2 of Form 10-Q for the quarter ended March 31, 2014 (File No. 814-01025), filed May 15, 2014.

31.1		Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32		Certification of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.



* Previously filed

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			AMERICAN CAPITAL SENIOR FLOATING, LTD.
Date:	~~November~~May 810, ~~2017~~2018	By:	/s/ KEVIN BRADDISH
			Kevin BraddishPresident and Chief Executive Officer(Principal Executive Officer)
Date:	~~November~~May 810, ~~2017~~2018	By:	/s/ PENNI F. ROLL
			Penni F. RollChief Financial Officer(Principal Financial Officer)
Date:	~~November~~May 810, ~~2017~~2018	By:	/s/ SCOTT C. LEM
			Scott C. LemChief Accounting Officer(Principal Accounting Officer)

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