Company: TSI
Filing Date: 2025-08-08
Form Type: N-2
Source: 0001193125-25-177098
Chunk: 27

Company: TCW STRATEGIC INCOME FUND INC
Filing Date: 2025-08-08
Form: N-2
Chunk 27
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 may also utilize certain strategies, including without limit investments in structured notes
or futures contracts or swap, cap, floor or collar transactions, for the purpose of reducing the interest rate sensitivity of the Fund’s portfolio, although there is no assurance that it will do so or that such strategies will be successful.

Leverage

The Fund can
utilize leverage through the use of a credit facility. The Fund has entered into a line of credit agreement with The Bank of New York Mellon which permits the Fund to borrow up to $[ ] million at a rate, per annum, equal to the Federal Funds
Rate plus 1.00%. There is also an annual facility fee of $[ ] for the contract period. For the six-month period ended June 30, 2025, the Fund had outstanding approximately $[ ] under its
Credit Facility, which represented approximately [ ]% of the Fund’s Managed Assets.

The Fund may also enter into transactions that
may give rise to a form of leverage including, among others, futures and forward contracts (including foreign currency exchange contracts), credit default swaps, total return swaps and other derivative transactions, loans of portfolio securities,
short sales and when-issued, delayed delivery and forward commitment transactions. Although it has no current intention to do so, the Fund may also determine to issue preferred shares or other types of senior securities to add leverage to its
portfolio. The Fund intends to utilize reverse repurchase agreements, dollar rolls, borrowings and other forms of leverage opportunistically and may choose to increase or decrease, or eliminate entirely, its use of leverage over time and from time
to time, based on the Adviser’s assessment of the yield curve environment, interest rate trends, market conditions and other factors.

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The net proceeds the Fund obtains from reverse repurchase agreements, dollar rolls or other
forms of leverage utilized will be invested in accordance with the Fund’s investment objective and policies as described in this prospectus. So long as the rate of return, net of applicable Fund expenses, on the debt obligations and other
investments purchased by the Fund exceeds the costs to the Fund of the leverage it utilizes, the investment of the Fund’s net assets attributable to leverage will generate more income than will be needed to pay the costs of the leverage. If so,
and all other things being equal, the excess may be used to pay higher dividends to Common Stockholders than if the Fund were not so leveraged.

The 1940 Act generally prohibits the Fund from engaging in most forms of leverage (