N••••• C•••••••• P•••••• C•••••• I••••• F•••

What matters now

1. $33.9M

   on non-accrual, 3 borrowers

   3 borrowers on non-accrual, $33.9M principal; the largest is I•••• I••••••••• I••••••••• H••••• I•• L•• ($18.2M).

   Q2 2026 · Loans that have stopped paying interest; they set the book's credit losses.

   FactBDC schedules of investments, 30 Jun 2026For LPs and shareholders in these BDCs, co-lenders on the same namesOpen I•••• I••••••••• I••••••••• H••••• I•• L•• →
2. $26.8M

   newly on non-accrual

   2 borrowers newly placed on non-accrual in Q2 2026, $26.8M principal: I•••• I••••••••• I••••••••• H••••• I•• L•• ($18.2M), D••••• I••••••••• G•••• L•• ($8.54M).

   Q2 2026 · The newest credit problems in the book.

   FactBDC schedules of investments, 30 Jun 2026Open I•••• I••••••••• I••••••••• H••••• I•• L•• →
3. 12 below 80¢

   $57.8M principal

   12 positions across 9 borrowers marked below 80¢ on cost, $57.8M principal.

   Q2 2026 · Marks this low usually come before non-accrual or a restructuring.

   Derivedeach position's fair value over cost, 30 Jun 2026
4. 38 → 45

   loans paying in kind

   Loans paying in kind rose from 38 to 45 positions in the quarter to Jun 30, 2026.

   Q2 2026 · Borrowers paying interest in more debt rather than cash is an early sign of strain.

   Factthe schedule's PIK rates, quarter on quarterQuarter by quarter →
5. 382 → 412

   borrowers

   Added a net 30 borrowers in the quarter to Jun 30, 2026, to 412.

   Q2 2026 · The book is turning over faster than usual.

   Factthe schedule's borrowers, quarter on quarterSchedule of investments →